SS-7037 (July 2009) 1

Department of State 

Division of Publications 

312 Rosa L. Parks, 8th Floor Snodgrass Tower 

Nashville, TN 37243 

Phone: 615.741.2650 

Fax: 615.741.5133 

Email: register.information@tn.gov

For Department of State Use Only 

Sequence Number: 

Notice ID(s): 

File Date: 

Notice of Rulemaking Hearing 

Hearings will be conducted in the manner prescribed by the Uniform Administrative Procedures Act, Tennessee Code Annotated, 

Section 4-5-204. For questions and copies of the notice, contact the person listed below. 

Agency/Board/Commission: Environment and Conservation 

Division: Air Pollution Control 

Contact Person: Lacey J. Hardin 

Address: 

9th Floor L & C Annex 

401 Church Street 

Nashville, Tennessee 37243-1531 

Phone: (615) 532-0545 

Email: Lacey.Hardin@gov.tn 

Any Individuals with disabilities who wish to participate in these proceedings (to review these filings) and may 

require aid to facilitate such participation should contact the following at least 10 days prior to the hearing: 

ADA Contact: ADA Coordinator 

Address: 

TDEC ADA Coordinator 

12th Floor 

401 Church Street 

Nashville, Tennessee 37243 

Phone: (615) 532-0207 or for hearing impaired, TN Relay Service 1-800-848-0298 

Email: Beverly.Evans@tn.gov 

Hearing Location(s) (for additional locations, copy and paste table) 

Address 1: 9th Floor L & C Annex 

Address 2: 401 Church Street 

City: Nashville, Tennessee 

Zip: 37243-1531 

Hearing Date : 09/09/10 

Hearing Time: 9:30 AM CST EST 

Additional Hearing Information: 

There will be a public hearing before the Technical Secretary of the Tennessee Air Pollution Control Board to 

consider the promulgation of amendments to the Tennessee Air Pollution Control Regulations and the State 

Implementation Plan pursuant to Tennessee Code Annotated, Section 68-201-105. The comments received at 

this hearing will be presented to the Tennessee Air Pollution Control Board for their consideration in regards to 

the proposed regulatory amendments. The hearing will be conducted in the manner prescribed by the Uniform 

Administrative Procedures Act, Tennessee Code Annotated, Section 4-5-201 et Seq. 

Anyone desiring to make oral comments at this public hearing is requested to prepare a written copy of their 

comments to be submitted to the hearing officer at the public hearing. Written comments not submitted at the 

public hearing will be included in the hearing record only if received by the close of business on Thursday, 

September 9, 2010, at the office of the Technical Secretary, Tennessee Air Pollution Control Board, 9th Floor, L & 

C Annex, 401 Church Street, Nashville, TN 37243-1531. 
SS-7037 (July 2009) 2

If you have any questions about the origination of this rule change, you may contact Ms. Lacey Hardin at (615) 

532-0554. Copies of documents concerning this matter are available for review at the office of the Technical 

Secretary and at certain public depositories. For information about reviewing these documents, please contact Mr. 

Malcolm Butler, 9th Floor, L & C Annex, 401 Church Street, Nashville, TN 37243-1531, telephone (615) 532-

0600. 

Revisions considered at this hearing may be adopted by the Tennessee Air Pollution Control Board under T.C.A. 68-

201-105, the Board general authority to promulgate rules. The changes proposed below may be revised based on 

comments received from the public, the regulated community, and any other affected entities. The Tennessee Air 

Pollution Control Board will consider all comments and set the fee appropriately. 

Materials concerning the proposed actions will be available at http://tn.gov/environment/apc/ppo/ and also for public 

inspection during normal working hours starting on Friday, August 6, 2010, at the following locations: 

Air Pollution Control Division Pollution Control Division Air Pollution Control Division 

9th Floor, L & C Annex Metropolitan Health Dept. Cookeville EFO 

401 Church Street 311 23rd Avenue, North 1221 South Willow Avenue 

Nashville, TN 37243-1531 Nashville, TN 37203 Cookeville, TN 38506 

Air Pollution Control Division Air Pollution Control Division Air Pollution Control Division 

Knoxville EFO Johnson City EFO Jackson EFO 

3711 Middlebrook Pk., Suite 220 2305 Silverdale Road 1625 Hollywood Drive 

Knoxville, TN 37921 Johnson City, TN 37601-2162 Jackson, TN 38305 

Air Pollution Control Division Knox County Department of Division of Air Pollution Control 

Columbia EFO Air Quality Management Memphis Environmental Field Office 

1421 Hampshire Pike 140 Dameron Avenue, Suite 242 8383 Wolf Lake Drive 

Columbia, TN 38401 Knoxville, TN 37917 Bartlett, TN 38133-4119 

Air Pollution Control Division Air Pollution Control Division Kingsport Public Library 

Chattanooga EFO Nashville EFO 400 Broad Street 

540 McCallie Avenue, Suite 550 711 R. S. Gass Boulevard Kingsport, TN 37660 

Chattanooga, TN 37402 Nashville, TN 37243 

Chattanooga-Hamilton County U.S. EPA, Region IV 

Air Pollution Control Bureau APTMD - 12th Floor, Atlanta Federal Center 

6125 Preservation Drive 61 Forsyth Street S.W. 

Chattanooga, TN 37416 Atlanta, GA 30303 

c/o Mr. Richard Schutt, Chief 

All persons interested in the air quality of the State of Tennessee are urged to attend and will be afforded the 

opportunity to present testimony to the hearing officer regarding the proposed additions and/or revisions to the State 

Implementation Plan. 

Revision Type (check all that apply): 

X Amendment 

New 

Repeal 

Rule(s) (ALL chapters and rules contained in filing must be listed here. If needed, copy and paste additional 

tables. Please enter only ONE Rule Number/RuleTitle per row.) 

Chapter Number Chapter Title 

1200-03-09 Construction and Operating Permits 

Rule Number Rule Title 

1200-03-09-.01 Construction Permits 

1200-03-09-.02 Operating Permits
SS-7037 (July 2009) 3

(Place substance of rules and other info here. Statutory authority must be given for each rule change. For 

information on formatting rules go to http://tn.gov/sos/rules/1360/1360.htm)

Chapter 1200-03-09 

Construction and Operating Permits 

Amendments 

Part 3 of subparagraph (a) of paragraph (4) of rule 1200-03-09-.01 Construction Permits is amended by deleting 

the “I” in “I981” and replacing it with a “1” so that, as amended, the part shall read: 

3. Any owner or operator who constructs or operates a source or 

modification not in accordance with the application submitted pursuant to 

this paragraph or with the terms of any approval to construct, or any 

owner or operator of a source or modification subject to this paragraph 

who commences construction after June 3, 1981 without applying for and 

receiving approval hereunder, shall be subject to appropriate 

enforcement action. 

Subpart (ii) of part 24 of subparagraph (b) of paragraph (4) of rule 1200-03-09-.01 Construction Permits is 

amended by adding “and part (b)46” between the words “subpart (b)24(i)” and “does” and by replacing the word 

“does” with the word “do” so that, as amended, the subpart shall read: 

(ii) “Significant” means, in reference to a net emissions increase or the 

potential of a source to emit a regulated NSR pollutant subject to 

regulations of EPA under the Clean Air Act and that subpart (b)24(i) and 

part (b)46 do not list, any emissions rate. 

Part 46 of subparagraph (b) of paragraph (4) of rule 1200-03-09-.01 Construction Permits is amended by deleting 

the word “Reserved” and replacing it as follows: 

46. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to either a 

provision in the Clean Air Act, or a nationally-applicable regulation codified by the 

Administrator in subchapter C of Chapter I of Title 40 of the Code of Federal Regulations, 

that requires actual control of the quantity of emissions of that pollutant, and that such a 

control requirement has taken effect and is operative to control, limit or restrict the 

quantity of emissions of that pollutant released from the regulated activity. Except that: 

(i) Greenhouse gases (GHGs), the air pollutant defined in part 86.1818–12(a) of 

Chapter I of Title 40 of the Code of Federal Regulations as the aggregate group of 

six greenhouse gases: Carbon dioxide, nitrous oxide, methane, 

hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not be subject 

to regulation except as provided in subparts (iv) through (v) of this part. 

(ii) For purposes of subparts (iii) through (v) of this part, the term tpy CO2 equivalent 

emissions (CO2e) shall represent an amount of GHGs emitted, and shall be 

computed as follows: 

(I) Multiplying the mass amount of emissions (tpy), for each of the six 

greenhouse gases in the pollutant GHGs, by the gas's associated global 
SS-7037 (July 2009) 4

warming potential published at Table A–1 to subpart A of part 98 of Chapter I 

of Title 40 of the Code of Federal Regulations - Global Warming Potentials. 

(II) Sum the resultant value from item (ii)(I) of this part for each gas to compute a 

tpy CO2e. 

(iii) The term emissions increase as used in subparts (iv) through (v) of this part shall 

mean that both a significant emissions increase (as calculated using the 

procedures in part (c)4 of this paragraph) and a significant net emissions increase 

(as defined in parts (b)4 and (b)24 of this paragraph) occur. For the pollutant 

GHGs, an emissions increase shall be based on tpy CO2e, and shall be calculated 

assuming the pollutant GHGs is a regulated NSR pollutant, and “significant” is 

defined as 75,000 tpy CO2e instead of applying the value in subpart (b)24(ii) of this 

paragraph. 

(iv) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if: 

(I) The stationary source is a new major stationary source for a regulated NSR 

pollutant that is not GHGs, and also will emit or will have the potential to emit 

75,000 tpy CO2e or more; or 

(II) The stationary source is an existing major stationary source for a regulated 

NSR pollutant that is not GHGs, and also will have an emissions increase of 

a regulated NSR pollutant, and an emissions increase of 75,000 tpy CO2e or 

more; and, 

(v) Beginning July 1, 2011, in addition to the provisions in subpart (iv)(b)47(iv) of this 

rule, the pollutant GHGs shall also be subject to regulation: 

(I) At a new stationary source that will emit or have the potential to emit 100,000 

tpy CO2e; or 

(II) At an existing stationary source that emits or has the potential to emit 

100,000 tpy CO2e, when such stationary source undertakes a physical 

change or change in the method of operation that will result in an emissions 

increase of 75,000 tpy CO2e or more. 

Subpart (iv) of part 47 of subparagraph (b) of paragraph (4) of rule 1200-03-09-.01 Construction Permits is 

amended by adding the words “as defined in part (b)46 of this paragraph” after the first occurrence of the words 

“Federal Clean Air Act” and deleting the remainder of the subpart so that, as amended, the subpart shall read: 

(iv) Any pollutant that otherwise is subject to regulation under the Federal Clean 

Air Act as defined in part (b)46 of this paragraph.

Part 47 of subparagraph (b) of paragraph (4) of rule 1200-03-09-.01 Construction Permits is amended by adding a 

new subpart “(v)” as follows: 

(v) Notwithstanding subparts (b)47(i) through (iv) of this paragraph, the term 

“regulated NSR pollutant” shall not include any or all hazardous air 

pollutants either listed in section 112 of the Federal Clean Air Act or 

added to the list pursuant to section 112(b)(2) of the Federal Clean Air 

Act, and which have not been delisted pursuant to section 112(b)(3) of 

the Federal Clean Air Act, unless the listed hazardous air pollutant is 

also regulated as a constituent or precursor of a general pollutant listed 

under section 108 of the Federal Clean Air Act. 
SS-7037 (July 2009) 5

Subpart (ii) of part 14 of subparagraph (b) of paragraph (11) of rule 1200-03-09-.02 Operating Permits is 

amended by adding the words “subject to regulation” between the words “air pollutant” and “(including any major 

source of fugitive emissions of any such pollutant, as determined by rule by the Administrator)” so that, as 

amended, the subpart shall read: 

(ii) A major stationary source of air pollutants, as defined in section 302 of 

the Federal Act, that directly emits or has the potential to emit, 100 tpy or 

more of any air pollutant subject to regulation (including any major 

source of fugitive emissions of any such pollutant, as determined by rule 

by the Administrator). The fugitive emissions of a stationary source shall 

not be considered in determining whether it is a major stationary source 

for the purposes of section 302(j) of the Federal Act, unless the source 

belongs to one of the following categories of stationary sources: 

Subparagraph (b) of paragraph (11) of rule 1200-03-09-.02 Operating Permits is amended by adding a new part 

“32” as follows: 

32. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to either a 

provision in the Clean Air Act, or a nationally-applicable regulation codified by the 

Administrator in subchapter C of Chapter I of Title 40 of the Code of Federal Regulations, 

that requires actual control of the quantity of emissions of that pollutant, and that such a 

control requirement has taken effect and is operative to control, limit or restrict the 

quantity of emissions of that pollutant released from the regulated activity. Except that: 

(i) Greenhouse gases (GHGs), the air pollutant defined in 40 CFR 86.1818–12(a) as 

the aggregate group of six greenhouse gases: carbon dioxide, nitrous oxide, 

methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not 

be subject to regulation unless, as of July 1, 2011, the GHG emissions are at a 

stationary source emitting or having the potential to emit 100,000 tpy 

CO2equivalent emissions. 

(ii) The term tpy CO2equivalent emissions (CO2e) shall represent an amount of GHGs 

emitted, and shall be computed by multiplying the mass amount of emissions (tpy), 

for each of the six greenhouse gases in the pollutant GHGs, by the gas's 

associated global warming potential published at Table A–1 to subpart A of 40 CFR 

98 - Global Warming Potentials, and summing the resultant value for each to 

compute a tpy CO2e. 

Authority: T.C.A. §§68-201-105
SS-7037 (July 2009) 6

I certify that the information included in this filing is an accurate and complete representation of the intent and 

scope of rulemaking proposed by the agency. 

Date:

Signature:

Name of Officer: Barry R. Stephens, P.E. 

Title of Officer: 

Director 

Tennessee Division of Air Pollution Control 

Subscribed and sworn to before me on:

Notary Public Signature:

My commission expires on:

Department of State Use Only 

Filed with the Department of State on:

______________________________ 

Tre Hargett 

Secretary of State 

09-.01 & .02redline.doc 
RULES 

OF 

TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

BUREAU OF ENVIRONMENT 

DIVISION OF AIR POLLUTION CONTROL 

CHAPTER 1200-03-09 

CONSTRUCTION AND OPERATING PERMITS 

TABLE OF CONTENTS 

1200-03-09-.01 Construction Permits 1200-03-09-.04 Exemptions

1200-03-09-.02 Operating Permits 1200-03-09-.05 Appeal of Permit Application Denials and 

1200-03-09-.03 General Provisions Permit Conditions

1200-03-09-.01 CONSTRUCTION PERMITS. 

(1) Application for Construction Permit 

(a) Except as specifically exempted in Rule 1200-03-09-.04, no person shall begin the 

construction of a new air contaminant source or the modification of an air contaminant

source which may result in the discharge of air contaminants without first having 

applied for and received from the Technical Secretary a construction permit for the

construction or modification of such air contaminant source. 

(b) The application for a construction permit shall be made on forms available from the

Technical Secretary not less than ninety (90) days prior to the estimated starting date 

of construction. Sources identified in paragraph 1200-03-09-.01(4) shall make

application for a construction permit not less than one hundred twenty (120) days prior 

to the estimated date of construction. 

(c) In addition to the information provided in the construction permit application forms, the

Technical Secretary may require submission, by the owner or operator of a source to

be constructed or modified of such information on the nature and amounts of air 

contaminants to be emitted by the source or emitted by associated mobile sources, and 

any other information necessary to insure compliance with the regulations of this 

Division, 1200-03, and the Board approved control strategy. 

(d) Construction of a new air contaminant source or the modification of an air contaminant

source which may result in the discharge of air contaminants must be in accordance

with the approved construction permit application, the provisions and stipulations set

forth in the construction permit, all provisions of the regulations of this Division

1200-03, any applicable measures of the control strategy, and all provisions of the

Tennessee Air Quality Act. 

(e) No construction permit shall be issued by the Technical Secretary if the approval to 

construct or modify an air contaminant source would result in a violation of the ambient

air quality standards specified in Chapter 1200-03-03, would cause a violation of any 

other regulatory requirement under this Division, 1200-03, would result in a violation of 

applicable portions of the control strategy, or would interfere with attainment or

maintenance of a national ambient air quality standard in a neighboring state. In the

case where a source or modification was constructed without first obtaining a

construction permit, a construction permit may be issued to the source or modification

to establish as conditions of the permit, the necessary emission limits and requirements 

to assure that these regulatory requirements are met. The appropriate enforcement 

action shall be pursued to insure that ambient air quality standards and other regulatory

August, 2009 (Revised) 1 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

requirements will be met. All emission limits and requirements of the construction

permit must be met prior to issuance of an operating permit for the source or

modification. 

(f) In the issuance of construction permits for new air contaminant sources, or

modifications, source impact analysis shall demonstrate that allowable emission

increases would not cause or contribute to air pollution in violation of any ambient air 

quality standard in Chapter 1200-03-03, of any national ambient air quality standard, or

any applicable maximum allowable increase as defined in paragraph 1200-03-

09-.01(4). As required, all estimates of ambient concentrations shall be based on 

applicable air quality models, and data bases acceptable to the Technical Secretary, 

and meeting the requirements in the EPA publication No. 450/2-78-027R, “Guidelines

on Air Quality Models (revised)” (1986), Supplement A (1987), and Supplement C 

(1995) which are incorporated by reference. The Technical Secretary may approve use

of a modified or another model on a case-by-case basis after consultation with and 

upon written approval from the EPA Administrator. 

(g) In the issuance of construction permits for new air contaminant sources or 

modifications, the degree of emission limitation required of any source for control of 

any air contaminant must not be affected by so much of any source’s stack height that

exceeds good engineering practice or by any other dispersion technique except as

provided for in Chapter 1200-03-24 of these regulations. 

(h) The Department shall on a monthly basis notify the public, by advertisement in a 

newspaper of general circulation in each air quality control region in which the 

proposed source or modification would be constructed, of the applicants seeking to

obtain a permit to construct or modify an air contaminant source. This notice shall

specify the general vicinity or location of the proposed source or modification, the type

of source or modification, and opportunity for public comment. Comments shall be in

writing and delivered to the Technical Secretary within thirty (30) days after the

publication of the public notice. 

(i) Reserved. 

(2) Definitions. As used in this chapter all terms not defined herein or in subsequent parts of this 

chapter shall have the meaning given them in Chapter 1200-03-02. 

(a) Reserved. 

(b) “Control Strategy” means a combination of measures, approved by the Board, 

designated to achieve the aggregate reduction of emissions necessary for attainment

and maintenance of the ambient air quality standards specified in the regulations under 

this Division 1200-03, or of the national ambient air quality standards including, but not

limited to measures such as: 

1. Emission limitations. 

2. State emission charges or other economic incentives or disincentives. 

3. Closing or relocation of residential, commercial, or industrial facilities. 

4. Changes in schedules or methods of operation of commercial or industrial

facilities or transportation systems, including, but not limited to, short term

changes made in accordance with standby plans. 

August, 2009 (Revised) 2
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

5. Periodic inspection and testing of motor vehicle emission control systems, at 

such time it is determined that such programs are feasible and practicable. 

6. Emission control measures applicable to in-use motor vehicles, including, but not 

limited to, measures such as mandatory maintenance, installation of emission

control devices, and conversion of gaseous fuels. 

7. Any transportation control measures considered feasible and practicable. 

8. Any variation of, or alternative to any measure delineated herein. 

9. Control or prohibition of a fuel or fuel additive used in motor vehicles, if such

control or prohibition is necessary to achieve a primary or secondary air quality 

standard, or national primary or secondary standard, and is approved by the 

Technical Secretary.

(c) “National Ambient Air Quality Standard” means any ambient standard for an air 

contaminant promulgated by the Administrator of the Environmental Protection Agency

and published in the Code of Federal Regulations. 

(d) “Best available control technology (BACT)” means an emission limitation (including a

visible emission standard) based on the maximum degree of reduction for each

pollutant subject to regulation under these rules which would be emitted from any

proposed new or modified air contaminant source which the Technical Secretary, on a 

case-by-case basis, taking into account energy, environmental, and economic impacts

and other costs, determines is achievable for such source or modification through

application of production processes or available methods, systems, and techniques,

including fuel cleaning or treatment or innovative fuel combustion techniques for control

of such pollutant. In no event shall application of best available control technology

result in emissions of any pollutant which would exceed the emissions allowed by any 

applicable standard under Chapters 1200-03-11 and 1200-03-16 of these rules. If the

Technical Secretary determines that technological or economic limitations on the

application of measurement methodology to a particular class of sources would make 

the imposition of an emission standard infeasible, a design, equipment, work practice,

or operational standard, or combination thereof, may be prescribed instead to require

the application of best available control technology. Such standard shall, to the degree 

possible, set forth the emission reduction achievable by implementation of such design, 

equipment, work practice, or operation, and shall provide for compliance by means

which achieve equivalent results. This definition does not apply to major sources and

major modifications, as defined in subparagraph (4)(b) of this rule, which are subject to

the provisions of paragraph (4) of this rule. 

(e) “Lowest achievable emission rate” (LAER) means, for any stationary source the more 

stringent rate of emissions based on the following: 

1. The most stringent emissions limitation which is contained in the applicable

standards under this Division 1200-03, or in any State Implementation Plan for 

such class or category of stationary source, unless the owner or operator of the

proposed source demonstrates that such limitations are not achievable; or 

2. The most stringent emissions limitation which is achieved in practice by such 

class or category of stationary source. This limitation, when applied to a 

modification, means the lowest achievable emissions rate for the new or modified

emissions units within the stationary source. In no event shall the application of

this term permit a proposed new or modified stationary source to emit any air 

August, 2009 (Revised) 3
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

contaminant in excess of the amount allowable under applicable new source

standards of performance.

3. This definition does not apply to major sources and major modifications, as

defined in part (5)(b)1. of this rule, which are subject to the provisions of 

subparagraph (5)(b) of this rule. The definition at subpart (5)(b)1.(xviii) of this 

rule applies to major sources and major modifications in non-attainment areas 

 

(3) Reserved. 

(4) Prevention of Significant Air Quality Deterioration 

(a) General Provisions

1. No new major stationary source or major modification, as defined in parts (b) 1. 

and (b) 2. of this paragraph, shall begin actual construction unless the 

requirements of this paragraph, as applicable, have been met. 

2. The requirements of this paragraph shall only apply to a proposed major

stationary source, or major modification with respect to any pollutant which is

emitted in significant amounts, or would result in a significant net emissions

increase of the pollutant respectively. Also, the requirements of this paragraph

do not apply to proposed pollutant emission sources or modifications in a

nonattainment area as defined in Chapter 1200-03-02 for any pollutant to be

emitted by the proposed source or modification for which the area is classified

nonattainment. 

3. Any owner or operator who constructs or operates a source or modification not in 

accordance with the application submitted pursuant to this paragraph or with the

terms of any approval to construct, or any owner or operator of a source or 

modification subject to this paragraph who commences construction after

June 3, 1981 without applying for and receiving approval hereunder, shall be

subject to appropriate enforcement action. 

4. Approval to construct shall become invalid if construction is not commenced 

within 18 months after issuance of an approved permit, if construction is

discontinued for a period of 18 months or more, or if construction is not

completed within 18 months of the completion date specified on the construction

permit application. The Tennessee Air Pollution Control Board may grant an

extension to complete construction of the source provided adequate justification 

is presented. An extension shall not exceed 18 months in time. The provision

does not apply to the time period between construction of the approved phases

of a phased construction project; each phase must commence construction

within 18 months of the projected and approved commencement date. 

5. Approval to construct shall not relieve any owner or operator of the responsibility 

to comply fully with the applicable provisions under this Division 1200-03 and any 

other requirements under local, State, or Federal law. 

6. If a particular source or modification becomes a major stationary source or major 

modification solely by virtue of a relaxation in any enforceable limitation which 

was established after August 7, 1980, on the capacity of the source or 

modification otherwise to emit a pollutant, such as a restriction on hours of 

operation, then the requirements of this paragraph shall apply to the source or 

August, 2009 (Revised) 4
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

modification as though construction had not yet commenced on the source or 

modification. 

7. Permit Rescission 

(i) Any permit for a prevention of significant air quality deterioration (PSD) 

source or modification that was issued prior to June 2, l990, will remain in

effect and binding until such time as the permittee files a completed

application to obtain rescission. This application for rescission may be filed

at any time by the permittee. 

(ii) The Technical Secretary shall approve any application for rescission if the 

application shows that this paragraph 1200-03-09-.01(4), would not apply 

to the source or modification. 

(iii) If requested by the permittee, the Technical Secretary may rescind only

certain elements required in a PSD permit issued on or before June 3,

1981. 

(iv) Those sources subject to PSD review before August 7, 1977 shall not be 

allowed to apply for a PSD permit rescission if construction had

“commenced” by August 7, 1977. 

(v) If a source or modification whose permit is rescinded were later found to be 

causing or contributing to an increment violation, additional control may be 

required if determined necessary by the Technical Secretary. 

(vi) If the Technical Secretary rescinds a permit under this paragraph, the 

public shall be given adequate notice of the rescission. Publication of an

announcement of rescission in a newspaper of general circulation in the

affected region within 60 days of the rescission shall be considered

adequate notice. 

8. Reserved. 

9. Reserved. 

10. Reserved. 

11. The following specific provisions apply to projects at existing emissions units at a

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

applicability limitation [PAL]) in circumstances where there is a reasonable

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

significant emissions increase and the owner or operator elects to use the 

method specified in items (b)38.(i)(I) through (III) of this paragraph for calculating 

projected actual emissions. 

(i) Before beginning actual construction of the project, the owner or operator 

shall document and maintain a record of the following information: 

(I) A description of the project; 

(II) Identification of the emissions unit(s) whose emissions of a regulated

NSR pollutant could be affected by the project; and 

August, 2009 (Revised) 5
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(III) A description of the applicability test used to determine that the 

project is not a major modification for any regulated NSR pollutant, 

including the baseline actual emissions, the projected actual 

emissions, the amount of emissions excluded under item (b)38.(i)(III) 

of this paragraph and an explanation for why such amount was 

excluded, and any netting calculations, if applicable. 

(ii) If the emissions unit is an existing electric utility steam generating unit, 

before beginning actual construction, the owner or operator shall provide a

copy of the information set out in sub-part (a)11.(i) of this paragraph to the

Technical Secretary. Nothing in this sub-part (a)11.(ii) shall be construed

to require the owner or operator of such a unit to obtain any determination

from the Technical Secretary before beginning actual construction. 

(iii) The owner or operator shall monitor the emissions of any regulated NSR 

pollutant that could increase as a result of the project and that is emitted by

any emissions unit identified in item (a)11.(i)(II) of this paragraph; and

calculate and maintain a record of the annual emissions, in tons per year

on a calendar year basis, for a period of 5 years following resumption of

regular operations after the change, or for a period of 10 years following

resumption of regular operations after the change if the project increases 

the design capacity or potential to emit of that regulated NSR pollutant at 

such emissions unit. 

(iv) If the unit is an existing electric utility steam generating unit, the owner or

operator shall submit a report to the Technical Secretary within 60 days 

after the end of each year during which records must be generated under 

sub-part (a)11.(ii) of this paragraph setting out the unit’s annual emissions 

during the calendar year that preceded submission of the report. 

(v) If the unit is an existing unit other than an electric utility steam generating 

unit, the owner or operator shall submit a report to the Technical Secretary

if the annual emissions, in tons per year, from the project identified in subpart (a)11.(i) of this paragraph, exceed the baseline actual emissions (as 

documented and maintained pursuant to item (a)11.(i)(III) of this 

paragraph) by a significant amount (as defined in part (b)24. of this 

paragraph) for that regulated NSR pollutant, and if such emissions differ 

from the preconstruction projection as documented and maintained

pursuant to item (a)11.(i)(III) of this paragraph. Such report shall be 

submitted to the Technical Secretary within 60 days after the end of such

year. The report shall contain the following: 

(I) The name, address and telephone number of the major stationary 

source; 

(II) The annual emissions as calculated pursuant to sub-part (a)11.(iii) of 

this paragraph; and 

(III) Any other information that the owner or operator wishes to include in 

the report (e.g., an explanation as to why the emissions differ from

the preconstruction projection). 

12. The owner or operator of the source shall make the information required to be

documented and maintained pursuant to part (a)11. of this paragraph available

August, 2009 (Revised) 6
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

for review upon request for inspection by the Technical Secretary or the general

public. 

(b) Definitions. As used in this paragraph, all terms not defined herein shall have the

meaning given them in Chapter 1200-03-02. 

1. “Major stationary source” means: 

(i) Any of the following stationary sources, which emit or have the potential to 

emit, 100 tons per year or more of a regulated NSR pollutant. 

(I) Fossil-fuel fired steam electric plants of more than 250 million

BTU per hour heat input. 

(II) Municipal incinerators (or combinations thereof) capable of

charging more than 250 tons of refuse per day. 

(III) Fossil-fuel boilers (or combinations thereof) totaling more than 

250 million BTU per hour heat input. 

(IV) Petroleum storage and transfer facilities with a total storage 

capacity exceeding 300,000 barrels. 

(V) Coal cleaning plants (with thermal dryers) 

(VI) Kraft pulp mills 

(VII) Portland cement plants 

(VIII) Primary zinc smelters

(IX) Iron and steel mill plants 

(X) Primary aluminum ore reduction plants 

(XI) Primary copper smelters 

(XII) Hydrofluoric acid plants 

(XIII) Sulfuric acid plants

(XIV) Nitric acid plants

(XV) Petroleum refineries 

(XVI) Lime plants 

(XVII) Phosphate rock processing plants 

(XVIII) Coke oven batteries

(XIX) Sulfur recovery plants 

(XX) Carbon black plants (furnace process) 

August, 2009 (Revised) 7
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(XXI) Primary lead smelters

(XXII) Fuel conversion plants 

(XXIII) Sintering plants

(XXIV) Secondary metal production plants 

(XXV) Chemical process plants

(XXVI) Taconite ore processing plants

(XXVII) Glass fiber processing plants 

(XXVIII) Charcoal production plants

(ii) Notwithstanding the stationary source size specified in subpart (b)1.(i) of 

this paragraph, any stationary source which emits or has the potential to

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

(iii) Any physical change that would occur at a stationary source not otherwise

qualifying under part (b)1. as a major stationary source if the change would

constitute a major stationary source by itself. 

2. “Major modification” means any physical change in or change in the method of

operation of a major stationary source that would result in a significant emissions

increase (as defined in part (b)34. of this paragraph) of a regulated NSR 

pollutant(as defined in part (b)47. of this paragraph); and a significant net 

emissions increase of that pollutant from the major stationary source. 

(i) A physical change or change in the method of operation shall not include: 

(I) Routine maintenance, repair, or replacement; 

(II) Use of an alternative fuel or raw material by reason of any order 

under section 2(a) and (b) of the Energy Supply and Environmental

Coordination Act of 1974 (or any superseding legislation) or by

reason of a natural gas curtailment plan pursuant to an applicable

federal statute; 

(III) Use of an alternative fuel by reason of an order or rule under section 

125 of the Clean Air Act; 

(IV) Use of an alternative fuel at a steam generating unit to the extent 

that the fuel is generated from municipal solid waste as determined

by the Tennessee Division of Solid Waste Management. 

(V) Use of an alternative fuel or raw material by a stationary source

which the source was capable of accommodating before January 6, 

1975, unless such change would be prohibited under a legally 

enforceable permit condition which was established after January 6,

1975, or under regulations of this Division 1200-03, or under 

regulations approved by the Environmental Protection Agency 

pursuant to 40 CFR 51.160-51.166; 

August, 2009 (Revised) 8
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(VI) An increase in the hours of operation or in the production rate,

unless such change would be prohibited under a legally enforceable 

permit condition which was established after January 6, 1975, or 

under regulations of this Division 1200-03. 

(VII) Any change in ownership at a stationary source. 

(VIII) Reserved. 

(IX) The installation, operation, cessation, or removal of a temporary 

clean coal technology demonstration project, provided that the

project complies with: 

I. The State Implementation Plan for the State in which the project

is located, and 

II. Other requirements necessary to attain and maintain the national 

ambient air quality standards during the project and after it is 

terminated. 

(X) The installation or operation of a permanent clean coal technology 

demonstration project that constitutes re-powering, provided that the 

project does not result in an increase in the potential to emit of any

regulated pollutant emitted by the unit. This exemption shall apply on 

a pollutant-by-pollutant basis. 

(ii) This definition shall not apply with respect to a particular regulated NSR 

pollutant when the major stationary source is complying with the 

requirements under subparagraph (s) of this paragraph for a PAL for that

pollutant. Instead, the definition at sub-part (s)2.(viii) of this paragraph shall

apply. 

3. Major sources and modifications for ozone 

(i) A source that is major for either volatile organic compounds or nitrogen

oxides shall be considered major for ozone. 

(ii) Any significant emissions increase from any emissions units or net

emissions increase at a major stationary source that is significant for either

volatile organic compounds or nitrogen oxides shall be considered

significant for ozone. 

4. Net emission increases 

(i) “Net emissions increase” means, with respect to any regulated NSR

pollutant emitted by a major stationary source, the amount by which the

sum of the following exceeds zero: 

(I) The increase in emissions from a particular physical change or

change in the method of operation at a stationary source, as 

calculated pursuant to part (c)4. of this paragraph; and 

(II) Any other increases and decreases in actual emissions at the major 

stationary source that are contemporaneous with the particular 

August, 2009 (Revised) 9
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

change and are otherwise creditable. Baseline actual emissions for 

calculating increases and decreases under this item (b)4.(i)(II) shall 

be determined as provided in part (b)45., except that items 

(b)45.(i)(III) and (b)45.(ii)(IV) of this paragraph shall not apply. 

(ii) An increase or decrease in actual emissions is contemporaneous with the

increase from the particular change only if it occurs between: 

(I) The date five years before a completed application for the particular 

change is submitted; and 

(II) The date that the increase from the particular change occurs. 

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

(I) It occurs within the five years prior to the date a completed

application for the particular change is submitted; and

(II) The Technical Secretary has not relied on it in issuing a permit for 

the source under regulations approved pursuant to this rule, which

permit is in effect when the increase in actual emissions from the

particular change occurs; and 

(III) Reserved. 

(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate

matter, or nitrogen oxides that occurs before the applicable minor source

baseline date is creditable only if it is required to be considered in

calculating the amount of maximum allowable increases remaining

available. 

(v) An increase in actual emissions is creditable only to the extent that the new

level of actual emissions exceeds the old level. 

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

(I) The old level of actual emissions or the old level of allowable 

emissions, whichever is lower, exceeds the new level of actual

emissions; 

(II) It is enforceable as a practical matter at and after the time that actual 

construction on the particular change begins; and 

(III) It has approximately the same qualitative significance for public 

health and welfare as that attributed to the increase from the 

particular change; and 

(IV) Reserved. 

(vii) An increase that results from a physical change at a source occurs when

the emissions unit on which construction occurred becomes operational

and begins to emit a particular pollutant. Any replacement unit that 

requires shakedown becomes operational only after a reasonable

shakedown period as determined by the Technical Secretary, not to 

exceed 180 days. 

August, 2009 (Revised) 10
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(viii) Sub-part (b)22.(i) of this paragraph shall not apply for determining

creditable increases and decreases. 

5. “Potential to emit” means the maximum capacity of a stationary source to emit a

pollutant under its physical and operational design. Any physical or operational 

limitation on the capacity of the source to emit a pollutant, including air pollution

control equipment and restrictions on hours of operation or on the type or amount

of material combusted, stored, or processed, shall be treated as part of its design

if the limitation or the effect it would have on emissions is legally enforceable. 

Secondary emissions do not count in determining the potential to emit of a 

stationary source. 

6. “Stationary source” means any building, structure, facility, or installation which 

emits or may emit a regulated NSR pollutant except the activities of any vessel. 

7. “Building, structure, facility, or installation” means all of the pollutant-emitting

activities which belong to the same industrial grouping, are located on one or 

more contiguous or adjacent properties, and are under the control of the same

person (or persons under common control), except the activities of any vessel. 

Pollutant-emitting activities shall be considered as part of the same industrial 

grouping if they belong to the same “Major Group” (i.e., described by the first two

digits in the code which is specified in the Standard Industrial Classification

Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing

Office stock numbers 4101-0066 and 003-005-00176-0, respectively)). 

8. “Emissions unit” means any part of a stationary source that emits or would have

the potential to emit any regulated NSR pollutant and includes an electric utility 

steam generating unit as defined in part (b)52. of this paragraph. For purposes 

of this paragraph, there are two types of emissions units as described in subparts (b)8.(i) and (ii) of this paragraph. 

(i) A new emissions unit is any emissions unit that is (or will be) newly

constructed and that has existed for less than 2 years from the date such

emissions unit first operated. 

(ii) An existing emissions unit is any emissions unit that does not meet the 

requirements in sub-part (b)8.(i) of this paragraph. A replacement unit, as 

defined in part (b)33. of this paragraph, is an existing emissions unit.. 

9. “Construction” means any physical change or change in the method of operation

(including fabrication, erection, installation, demolition, or modification of an

emissions unit) which would result in a change in actual emissions.

10. “Commence” as applied to construction of a major stationary source or major 

modification means that the owner or operator has all necessary preconstruction 

approvals or permits and either has: 

(i) Begun, or caused to begin, a continuous program of actual on-site

construction of the source, to be completed within the time frame as

allowed in part 1200-03-09-.01(4)(a)4, or 

(ii) Entered into binding agreements or contractual obligations, which cannot

be canceled or modified without substantial loss to the owner or operator, 

August, 2009 (Revised) 11
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

to undertake a program of actual construction of the source to be

completed within the time frame as allowed in part 1200-03-09-.01(4)(a)4. 

11. “Necessary preconstruction approvals or permits” means all permits or approvals 

required under air quality control laws and regulations. 

12. “Begin actual construction” means, in general, initiation of physical on-site

construction activities on an emissions unit which are of a permanent nature. 

Such activities include, but are not limited to, installation of building supports and

foundations, laying of underground pipework, and construction of permanent 

storage structures. With respect to a change in method of operation this term

refers to those on-site activities, other than preparatory activities, which mark the

initiation of the change. 

13. “Pollutant” means those air contaminants which fall under the categories of 

criteria and non-criteria pollutants. Criteria pollutants are those for which an 

ambient air quality standard has been established. The non-criteria pollutants 

are air contaminants that are not criteria pollutants. 

14. “Baseline area” means any intrastate area (and every part thereof) not

designated as a nonattainment area in which the major source or major 

modification establishing the minor source baseline date would construct or 

would have an air quality impact equal to or greater than 1 ug/m3 (annual

average) of the pollutant for which the minor source baseline date is established. 

(i) Area redesignations under this Division 1200-03 cannot intersect or be 

smaller than the area of impact of any major stationary source or major 

modification which establishes a minor source baseline date or is subject 

to the regulations in this paragraph. 

15. “Baseline date”: 

(i) “Major source baseline date” means in the case of particulate matter and 

sulfur dioxide, January 6, 1975, and in the case of nitrogen dioxide, 

February 8, 1988. 

(ii) “Minor source baseline date” means the earliest date after the trigger date

on which a major stationary source or a major modification submits a

complete application to the Technical Secretary or to the EPA 

administrator. The trigger date is: 

(I) In the case of particulate matter and sulfur dioxide, August 7, 1977,

and 

(II) In the case of nitrogen dioxide, February 8, 1988. 

(iii) The baseline date is established for each pollutant for which increments or 

other equivalent measures have been established if: 

(I) The area in which the proposed source or modification would

construct is not designated as a nonattainment area for the pollutant 

on the date of its complete application. 

(II) In the case of a major stationary source, the pollutant would be

emitted in significant amounts, or, in the case of a major 

August, 2009 (Revised) 12
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

modification, there would be a significant net emissions increase of 

the pollutant.

16. “Baseline concentration” means that ambient concentration level which exists in

the baseline area at the time of the applicable minor source baseline date. A

baseline concentration is determined for each pollutant for which a minor source

baseline date is established and shall include: 

(i) The actual emissions representative of sources in existence on the

applicable minor source baseline date, except as provided in subpart

(b)16.(iii); and 

(ii) The allowable emissions of major stationary sources that commenced

construction before the major source baseline date, but were not in

operation by the applicable minor source baseline date. 

(iii) The following will not be included in the baseline concentration and will 

affect the applicable maximum allowable increment increase(s): 

(I) Actual emissions from any major stationary source on which 

construction commenced after the major source baseline date; and

(II) Actual emissions increases and decreases at any stationary source

occurring after the minor source baseline date. 

17. “Allowable emissions” means the emissions rate of a stationary source calculated

using the maximum rated capacity of the source (unless the source is subject to

legally enforceable limits which restrict the operating rate, or hours of operation,

or both) and the most stringent of the following: 

(i) The applicable standards under this Division 1200-03 or in the State

Implementation Plan, including those with a future compliance date; or 

(ii) The emissions rate specified as a legally enforceable permit condition 

established pursuant to this Rule 1200-03-09-.01, including those with a 

future compliance date. 

18. “Legally enforceable” means all limitations and conditions which are enforceable

by the Technical Secretary and the EPA Administrator, including those under this

Division 1200-3 and the State Implementation Plan, and any permit requirements 

established pursuant to this Rule 1200-03-09-.01. 

19. “Secondary emissions” means emissions which occur as a result of the

construction or operation of a major stationary source or major modification, but 

do not come from the major stationary source or major modification itself. For 

the purpose of this rule, secondary emissions must be specific, well defined, 

quantifiable, and impact the same general area as the stationary source or

modification which causes the secondary emissions. Secondary emissions 

include emissions from any offsite support facility which would not otherwise be 

constructed or increase its emissions except as a result of the construction or 

operation of the major stationary source or major modification. Secondary 

emissions do not include any emissions which come directly from a mobile

source, such as emissions from the tailpipe of a motor vehicle, from a train, or

from a vessel. 

August, 2009 (Revised) 13
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

20. “Innovative control technology” means any system of air pollution control that has

not been adequately demonstrated in practice, but would have a substantial

likelihood of achieving greater continuous emissions reduction than any control 

system in current practice or of achieving at least comparable reductions at lower 

cost in terms of energy, economics, or non-air quality environmental impacts. 

21. “Fugitive emissions” means those emissions which could not reasonably pass 

through a stack, chimney, vent, roof monitor, or other functionally equivalent 

opening. 

22. “Actual emissions” means the actual rate of emissions of a regulated NSR 

pollutant from an emissions unit, as determined in accordance with subparts (i) 

through (iii) below, except that this definition shall not apply for calculating

whether a significant emissions increase has occurred, or for establishing a PAL 

under subparagraph (s) of this paragraph. Instead, parts (b)38. and (b)45. of this

paragraph shall apply for those purposes. 

(i) In general, actual emissions as of a particular date shall equal the average

rate, in tons per year, at which the unit actually emitted the pollutant during

a consecutive 24-month period which precedes the particular date and 

which is representative of normal source operation. The Technical 

Secretary may allow the use of a different time period upon a 

determination that it is more representative of normal source operation.

Actual emissions shall be calculated using the unit’s actual operating

hours, production rates, and types of materials processed, stored, or

combusted during the selected time period. 

(ii) The Technical Secretary may presume that source-specific allowable

emissions for the unit are equivalent to the actual emissions of the unit. 

(iii) For any emissions unit that has not begun normal operations on the

particular date, actual emissions shall equal the potential to emit of the unit

on that date. 

23. “Complete” means, in reference to an application for a permit, that the application 

contains all the information necessary for processing the application. 

Designating an application complete for purposes of permit processing does not

preclude the Technical Secretary from requesting or accepting any additional

information. 

24. “Significant” means, in reference to a net emissions increase or the potential of a 

source to emit any of the following pollutants, a rate of emissions that would

equal or exceed any of the following rates: 

(i) Pollutant and Emissions Rate 

(I) Carbon monoxide: 100 tons per year (tpy) 

(II) Nitrogen oxides: 40 tpy 

(III) Sulfur dioxide: 40 tpy 

(IV) Particulate matter: 25 tpy of particulate matter emissions; 15 tpy of 

PM10 emissions. 

August, 2009 (Revised) 14
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(V) Ozone: 40 tpy of either volatile organic compounds or nitrogen

oxides. 

(VI) Lead (elemental): 0.6 tpy 

(VII) Fluorides: 3 tpy 

(VIII) Sulfuric acid mist: 7 tpy 

(IX) Total reduced sulfur (including H2S): 10 tpy 

(X) Reduced sulfur compounds (including H2S): 10 tpy 

(XI) Municipal waste combustor organics (measured as total tetrathrough octa- chlorinated dibenzo-p-dioxins and dibenzofurans): 3.2 

x 10-6 megagrams per year (3.5 x 10-6 tpy). 

(XII) Municipal waste combustor metals (measured as particulate matter):

15 tpy 

(XIII) Municipal waste combustor acid gases (measured as sulfur dioxide 

and hydrogen chloride): 36 megagrams per year (40 tpy) 

(XIV) Ozone depleting substances (listed under Section 602 of the federal 

Clean Air Act): 40 tpy 

(XV) Hydrogen sulfide: 10 tpy 

(XVI) Municipal solid waste landfill emissions (measured as non-methane 

organic compounds): 50 tpy 

(ii) “Significant” means, in reference to a net emissions increase or the

potential of a source to emit a regulated NSR pollutant subject to 

regulations of EPA under the Clean Air Act and that subpart (b)24(i) and 

part (b)46 do not list, any emissions rate. 

(iii) Notwithstanding subpart (b)24.(i), “significant” means any emissions rate or 

any net emissions increase associated with a major stationary source or 

major modification, which would construct within 10 kilometers of a Class I 

area and have an impact on such area equal to or greater than 1 ug/m3

(24-hour average). 

25. “Federal Land Manager” means, with respect to any lands in the United States, 

the Secretary of the department with authority over such lands. 

26. “High terrain” means any area having an elevation 900 feet or more above the 

base of the stack of a source. 

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

28. “Adverse impact on visibility” means visibility impairment which interferes with the

management, protection, preservation or enjoyment of the visitors visual

experience of the Federal Class I area. This determination must be made on a

case-by-case basis taking into account the geographic extent, intensity, duration, 

August, 2009 (Revised) 15
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

frequency and time of visibility impairments, and how these factors correlate with 

the times of visitor use of the Federal Class I area, and with the frequency and

timing of natural conditions that reduce visibility. 

29. “Volatile organic compounds (VOC)” means any compound of carbon, excluding

carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, 

and ammonium carbonate, which participates in atmospheric photochemical 

reactions. 

(i) This includes any such organic compound other than the following, which

have been determined to have negligible photochemical reactivity: 

methane; ethane; methylene chloride (dichloromethane); 1,1,1-

trichloroethane (methyl chloroform); 1,1,2-trichloro-1,2,2-trifluoroethane

(CFC-113); trichlorofluoromethane (CFI-11); dichlorodifluoromethane 

(CFC-12); chlorodifluoromethane (HCFC-22); trifluoromethane (HFC-23);

1,2-dichloro 1,1,2,2-tetrafluoroethane (CFC-114); chloropentafluoroethane

(CFC-115); 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123); 1,1,1,2-

tetrafluoroethane (HFC-134a); 1,1-dichloro 1-fluoroethane (HCFC-141b); 

1-chloro 1,1-difluoroethane (HCFC-142b); 2-chloro-1,1,1,2-

tetrafluoroethane (HCFC-124); pentafluoroethane (HFC-125); 1,1,2,2-

tetrafluoroethane (HFC-134); 1,1,1-trifluoroethane (HFC-143a); 1,1-

difluoroethane (HFC-152a); parachlorobenzotrifluoride (PCBTF); cyclic,

branched, or linear completely methylated siloxanes; acetone; 

perchloroethylene (tetrachloroethylene); 3,3-dichloro-1,1,1,2,2-

pentafluoropropane (HCFC-225ca); 1,3-dichloro-1,1,2,2,3-

pentafluoropropane (HCFC-225cb); 1,1,1,2,3,4,4,5,5,5-decafluoropentane

(HFC-43-10mee); difluoromethane (HFC-32); ethylfluoride (HFC-161); 

1,1,1,3,3,3-hexafluoropropane (HFC-236fa); 1,1,2,2,3-pentafluoropropane

(HFC-245ca); 1,1,2,3,3-pentafluoropropane (HFC-245ea); 1,1,1,2,3-

pentafluoropropane (HFC-245eb); 1,1,1,3,3-pentafluoropropane (HFC245fa); 1,1,1,2,3,3-hexafluoropropane (HFC-236ea); 1,1,1,3,3-

pentafluorobutane (HFC-365mfc); chlorofluoromethane (HCFC-31); 1-

chloro-1-fluoroethane (HCFC-151a); 1,2-dichloro-1,1,2-trifluoroethane

(HCFC-123a); 1,1,1,2,2,3,3,4,4-nonafluoro-4-methoxy-butane (C4F9OCH3); 

2-(difluoromethoxymethyl)-1,1,1,2,3,3,3-heptafluoropropane 

((CF3)2CFCF2OCH3); 1-ethoxy-1,1,2,2,3,3,4,4,4-nonafluorobutane 

(C4F9OC2H5); 2-(ethoxydifluoromethyl)-1,1,1,2,3,3,3-heptafluoropropane

((CF3)2CFCF2OC2H5); methyl acetate; 1,1,1,2,2,3,3-heptafluoro-3-methoxypropane (n-C3F7OCH3, HFE–7000); 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-

dodecafluoro-2-(trifluoromethyl) hexane (HFE–7500); 1,1,1,2,3,3,3-

heptafluoropropane (HFC 227ea); methyl formate (HCOOCH3); and

perfluorocarbon compounds which fall into these classes: 

(I) Cyclic, branched, or linear, completely fluorinated alkanes; 

(II) Cyclic, branched, or linear, completely fluorinated ethers with no

unsaturations; 

(III) Cyclic, branched, or linear, completely fluorinated tertiary amines 

with no unsaturations; and

(IV) Sulfur containing perfluorocarbons with no unsaturations and with 

sulfur bonds only to carbon and fluorine.

August, 2009 (Revised) 16
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(ii) For purposes of determining compliance with emissions limits, VOC will be 

measured by the test methods in the approved State implementation plan

(SIP) or 40 CFR part 60, Appendix A, as applicable. Where such a method

also measures compounds with negligible photochemical reactivity, these

negligibility-reactive compounds may be excluded as VOC if the amount of

such compounds is accurately quantified, and such exclusion is approved

by the Technical Secretary. 

(iii) As a precondition to excluding these compounds as VOC or at any time 

thereafter, the Technical Secretary may require an owner or operator to

provide monitoring or testing methods and results demonstrating, to the

satisfaction of the Technical Secretary, the amount of negligibly-reactive

compounds in the source’s emissions. 

(iv) For purposes of enforcement for a specific source, the test methods 

specified in these regulations, in the approved SIP, or in a permit issued

pursuant to these regulations shall be used. 

(v) The following compound(s) are VOC for purposes of all recordkeeping, 

emissions reporting, photochemical dispersion modeling and inventory

requirements which apply to VOC and shall be uniquely identified in

emission reports, but are not VOC for purposes of VOC emissions 

limitations or VOC content requirements: t-butyl acetate. 

30. “Dispersion technique” shall have the meaning as provided in Chapter

1200-03-24. 

31. “Good engineering practice” (GEP) shall have the meaning as provided in

Chapter 1200-03-24. 

32. “Welfare” all language referring to effects on welfare includes, but is not limited

to, effects on soils, water, crops, vegetation, manmade materials, animals, 

wildlife, weather, visibility, and climate, damage to and deterioration of property, 

and hazards to transportation, as well as effects on economic values and on

personal comfort and well-being, whether caused by transformation, conversion,

or combination with other air pollutants. 

33. “Replacement unit” means an emissions unit for which all the criteria listed in

sub-parts (b)33.(i) through (iv) of this paragraph are met. No creditable emission

reductions shall be generated from shutting down the existing emissions unit that

is replaced. 

(i) The emissions unit is a reconstructed unit within the meaning of part 54. of

this subparagraph, or the emissions unit completely takes the place of an

existing emissions unit. 

(ii) The emissions unit is identical to or functionally equivalent to the replaced

emissions unit. 

(iii) The replacement does not change the basic design parameter(s) of the

process unit. 

(iv) The replaced emissions unit is permanently removed from the major 

stationary source, otherwise permanently disabled, or permanently barred

from operation by a permit that is enforceable as a practical matter. If the 

August, 2009 (Revised) 17
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

replaced emissions unit is brought back into operation, it shall constitute a

new emissions unit. 

34. “Significant emissions increase” means, for a regulated NSR pollutant, an

increase in emissions that is significant (as defined in part (b)24. of this

paragraph) for that pollutant. 

35. Reserved. 

36. “Pollution prevention” means any activity that through process changes, product 

reformulation or redesign, or substitution of less polluting raw materials, 

eliminates or reduces the release of air pollutants (including fugitive emissions) 

and other pollutants to the environment prior to recycling, treatment, or disposal; 

it does not mean recycling (other than certain “in-process recycling” practices),

energy recovery, treatment, or disposal.

37. Reserved. 

38. “Projected actual emissions” means the maximum annual rate, in tons per year, 

at which an existing emissions unit is projected to emit a regulated NSR pollutant 

in any one of the 5 years (12-month period) following the date the unit resumes 

regular operation after the project, or in any one of the 10 years following that 

date, if the project involves increasing the emissions unit’s design capacity or its 

potential to emit that regulated NSR pollutant, and full utilization of the unit would

result in a significant emissions increase, or a significant net emissions increase

at the major stationary source. 

(i) In determining the projected actual emissions under part (b)38. of this 

paragraph (before beginning actual construction), the owner or operator of 

the major stationary source: 

(I) Shall consider all relevant information, including 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 State

or Federal regulatory authorities, and compliance plans under the

approved plan; and 

(II) Shall include fugitive emissions to the extent quantifiable and

emissions associated with startups, shutdowns, and malfunctions;

and 

(III) Shall exclude, in calculating any increase in emissions that results 

from the particular project, that portion of the unit’s emissions 

following the project that an existing unit could have accommodated

during the consecutive 24-month period used to establish the

baseline actual emissions under part (b)45. of this paragraph and 

that are also unrelated to the particular project, including any

increased utilization due to product demand growth; or, 

(IV) In lieu of using the method set out in items (b)(38.(i)(I) through (III) of

this paragraph, may elect to use the emissions unit’s potential to

emit, in tons per year, as defined under part (b)5. of this paragraph. 

39. Reserved. 

August, 2009 (Revised) 18
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

40. “Prevention of Significant Deterioration Program” (PSD) program means a major 

source preconstruction permit program that has been approved by the

Administrator and incorporated into the State Implementation Plan (SIP) to 

implement the requirements of 40 CFR 51.166. Any permit issued under such a

program is a major NSR permit. 

41. “Continuous emissions monitoring system (CEMS)” means all of the equipment 

that may be required to meet the data acquisition and availability requirements of 

this section, to sample, condition (if applicable), analyze, and provide a record of 

emissions on a continuous basis. 

42. “Predictive emissions monitoring system (PEMS)” means all of the equipment

necessary to monitor process and control device operational parameters (for 

example, control device secondary voltages and electric currents) and other 

information (for example, gas flow rate, O 2 or CO 2 concentrations), and 

calculate and record the mass emissions rate (for example, lb/hr) on a

continuous basis. 

43. “Continuous parameter monitoring system (CPMS)” means all of the equipment 

necessary to meet the data acquisition and availability requirements of this

paragraph, to monitor process and control device operational parameters (for 

example, control device secondary voltages and electric currents) and other 

information (for example, gas flow rate, O 2

 or CO 2 concentrations), and to

record average operational parameter value(s) on a continuous basis. 

44. “Continuous emissions rate monitoring system (CERMS)” means the total 

equipment required for the determination and recording of the pollutant mass

emissions rate (in terms of mass per unit of time). 

45. “Baseline actual emissions” means the rate of emissions, in tons per year, of a

regulated NSR pollutant, as determined in accordance with sub-parts (b)45.(i) 

through (iv) of this paragraph. 

(i) For any existing electric utility steam generating unit, baseline actual

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

actually emitted the pollutant during any consecutive 24-month period

selected by the owner or operator within the 5-year period immediately 

preceding when the owner or operator begins actual construction of the

project. The Technical Secretary shall allow the use of a different time

period upon a determination that it is more representative of normal source 

operation. 

(I) The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, shutdowns, 

and malfunctions. 

(II) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating

above an emission limitation that was legally enforceable during the

consecutive 24-month period. 

(III) For a regulated NSR pollutant, when a project involves multiple

emissions units, one consecutive 24-month period must be used to 

determine the baseline actual emissions for the emissions units

August, 2009 (Revised) 19
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

being changed. However, the Technical Secretary is authorized to 

allow the use of multiple, pollutant specific consecutive 24-month

baselines in determining the magnitude of a significant net emissions 

increase and the applicability of major new source review

requirements if all of the following conditions are met: 

I. Construction of a new source or modification would become

subject to major new source review if a single 2-year

baseline is used for all pollutants. 

II. One or more pollutants were emitted during such 2-year 

period in amounts that were less than otherwise permitted

for reasons other than operations at a lower production or 

utilization rate. Qualifying examples include, but are not

limited to, the voluntary use of: 

A. a cleaner fuel than otherwise permitted in a fuel

burning operation (e.g., natural gas instead of coal in

a multi-fuel boiler), 

B. a coating with a lower VOC content than otherwise 

permitted in a coating operation, 

C. a voluntary improvement in the control efficiency of

an air pollution control device or the voluntary

addition of a control device where one did not exist

before, and 

D. alternate production methods, raw materials, or

products that result in lower emissions of one or

more pollutants.

III. Use of alternate 2-year baselines for the pollutants described 

in subitem II above would result in the construction of the

new source or modification not being subject to major new 

source review. 

IV. The use of the multiple baselines is not prohibited by any

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is upon

the permit applicant. The demonstration and the Technical

Secretary’s approval will be made a part of the permit record. 

(IV) The average rate shall not be based on any consecutive 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 item (b)45.(i)(II) of this paragraph. 

(ii) For an existing emissions unit (other than an electric utility steam 

generating unit), baseline actual emissions means the average rate, in tons

per year, at which the emissions unit actually emitted the pollutant during

any consecutive 24-month period selected by the owner or operator within

the 10-year period immediately preceding either the date the owner or 

August, 2009 (Revised) 20
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

operator begins actual construction of the project, or the date a complete 

permit application is received by the Technical Secretary for a permit 

required either under this section or under a plan approved by the

Administrator, whichever is earlier, except that the 10-year period shall not 

include any period earlier than November 15, 1990. 

(I) The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, shutdowns, 

and malfunctions. 

(II) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating

above an emission limitation that was legally enforceable during the

consecutive 24-month period. 

(III) The average rate shall be adjusted downward to exclude any 

emissions that would have exceeded an emission limitation with 

which the major stationary source must currently comply, had such

major stationary source been required to comply with such

limitations during the consecutive 24-month period. However, if an

emission limitation is part of a maximum achievable control 

technology standard that the Administrator proposed or promulgated

under 40 CFR 63, the baseline actual emissions need only be

adjusted if the State has taken credit for such emissions reductions

in an attainment demonstration or maintenance plan. 

(IV) For a regulated NSR pollutant, when a project involves multiple 

emissions units, one consecutive 24-month period must be used to 

determine the baseline actual emissions for the emissions units 

being changed. However, the Technical Secretary is authorized to 

allow the use of multiple, pollutant specific consecutive 24-month

baselines in determining the magnitude of a significant net emissions 

increase and the applicability of major new source review 

requirements if all of the following conditions are met: 

I. Construction of a new source or modification would become

subject to major new source review if a single 2-year

baseline is used for all pollutants. 

II. One or more pollutants were emitted during such 2-year 

period in amounts that were less than otherwise permitted

for reasons other than operations at a lower production or 

utilization rate. Qualifying examples include, but are not

limited to, the voluntary use of: 

A. a cleaner fuel than otherwise permitted in a fuel

burning operation (e.g., natural gas instead of coal in

a multi-fuel boiler), 

B. a coating with a lower VOC content than otherwise 

permitted in a coating operation, 

C. a voluntary improvement in the control efficiency of

an air pollution control device or the voluntary

addition of a control device where one did not exist

August, 2009 (Revised) 21
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

before, and 

D. alternate production methods, raw materials, or

products that result in lower emissions of one or

more pollutants.

III. Use of alternate 2-year baselines for the pollutants described 

in Subitem II above would result in the construction of the 

new source or modification not being subject to major new 

source review. 

IV. The use of the multiple baselines is not prohibited by any

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is upon

the permit applicant. The demonstration and the Technical

Secretary’s approval will be made a part of the permit record. 

(V) The average rate shall not be based on any consecutive 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 items (b)45.(ii)(II) and (III) of this paragraph. 

(iii) For a new emissions unit, the baseline actual emissions 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. 

(iv) For a PAL for a stationary source, the baseline actual emissions shall be

calculated for existing electric utility steam generating units in accordance 

with the procedures contained in sub-part (b)45.(i) of this paragraph, for 

other existing emissions units in accordance with the procedures contained

in sub-part (b)45.(ii) of this paragraph, and for a new emissions unit in 

accordance with the procedures contained in sub-part (b)45.(iii) of this

paragraph. 

46. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to 

either a provision in the Clean Air Act, or a nationally-applicable regulation 

codified by the Administrator in subchapter C of Chapter I of Title 40 of the Code

of Federal Regulations, that requires actual control of the quantity of emissions of

that pollutant, and that such a control requirement has taken effect and is 

operative to control, limit or restrict the quantity of emissions of that pollutant 

released from the regulated activity. Except that: 

(i) Greenhouse gases (GHGs), the air pollutant defined in part 86.1818–12(a) 

of Chapter I of Title 40 of the Code of Federal Regulations as the 

aggregate group of six greenhouse gases: Carbon dioxide, nitrous oxide, 

methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, 

shall not be subject to regulation except as provided in subparts (iv)

through (v) of this part. 

(ii) For purposes of subparts (iii) through (v) of this part, the term tpy CO2 

equivalent emissions (CO2e) shall represent an amount of GHGs emitted, 

and shall be computed as follows: 

August, 2009 (Revised) 22
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(I) Multiplying the mass amount of emissions (tpy), for each of the six

greenhouse gases in the pollutant GHGs, by the gas's associated

global warming potential published at Table A–1 to subpart A of part 

98 of Chapter I of Title 40 of the Code of Federal Regulations - 

Global Warming Potentials.

(II) Sum the resultant value from item (ii)(I) of this part for each gas to 

compute a tpy CO2e. 

(iii) The term emissions increase as used in subparts (iv) through (v) of this 

part shall mean that both a significant emissions increase (as calculated 

using the procedures in part (c)4. of this paragraph) and a significant net 

emissions increase (as defined in parts (b)4 and (b)24 of this paragraph) 

occur. For the pollutant GHGs, an emissions increase shall be based on

tpy CO2e, and shall be calculated assuming the pollutant GHGs is a 

regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO2e 

instead of applying the value in subpart (b)24(ii) of this paragraph. 

(iv) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if: 

(I) The stationary source is a new major stationary source for a 

regulated NSR pollutant that is not GHGs, and also will emit or will 

have the potential to emit 75,000 tpy CO2e or more; or 

(II) The stationary source is an existing major stationary source for a 

regulated NSR pollutant that is not GHGs, and also will have an 

emissions increase of a regulated NSR pollutant, and an emissions 

increase of 75,000 tpy CO2e or more; and, 

(v) Beginning July 1, 2011, in addition to the provisions in subpart (b)47(iv) of 

this rule, the pollutant GHGs shall also be subject to regulation: 

(I) At a new stationary source that will emit or have the potential to emit 

100,000 tpy CO2e; or 

(II) At an existing stationary source that emits or has the potential to emit 

100,000 tpy CO2e, when such stationary source undertakes a 

physical change or change in the method of operation that will result 

in an emissions increase of 75,000 tpy CO2e or more. 

47. “Regulated NSR pollutant,” for purposes of this paragraph, means the following: 

(i) Any pollutant for which a national ambient air quality standard has been

promulgated and any constituents or precursors for such pollutants 

identified by the Administrator (e.g., volatile organic compounds and

nitrogen oxides are precursors for ozone); 

(ii) Any pollutant that is subject to any standard promulgated under section

111 of the Federal Clean Air Act; 

(iii) Any Class I or II substance subject to a standard promulgated under or

established by title VI of the Federal Clean Air Act; or 

(iv) Any pollutant that otherwise is subject to regulation under the Federal

Clean Air Act as defined in part (b)46. of this paragraph. 

August, 2009 (Revised) 23
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(v) Notwithstanding sub-parts (b)47(i) through (iv) of this paragraph, the term

“regulated NSR pollutant” shall not include any or all hazardous air 

pollutants either listed in section 112 of the Federal Clean Air Act or added

to the list pursuant to section 112(b)(2) of the Federal Clean Air Act, and 

which have not been delisted pursuant to section 112(b)(3) of the Federal

Clean Air Act, unless the listed hazardous air pollutant is also regulated as

a constituent or precursor of a general pollutant listed under section 108 of

the Federal Clean Air Act. 

48. “Reviewing authority” means the State air pollution control agency, local agency, 

other State agency, Indian tribe, or other agency authorized by the Administrator

to carry out a permit program under 40 CFR 51.165, or the Administrator in the

case of EPA-implemented permit programs under 40 CFR 52.21. 

49. “Project” means a physical change in, or change in method of operation of, an

existing major stationary source. 

50. “Lowest achievable emission rate (LAER)” is as defined in sub-part (5)(b)1.(xviii) 

of this rule. 

51. Reserved. 

52. Electric utility steam generating unit means any steam electric generating unit 

that is constructed for the purpose of supplying more than one-third of its 

potential electric output capacity and more than 25 MW electrical output to any 

utility power distribution system for sale. Any steam supplied to a steam 

distribution system for the purpose of providing steam to a steam-electric 

generator that would produce electrical energy for sale is also considered in

determining the electrical energy output capacity of the affected facility. 

53. “Best available control technology” (BACT) means an emissions limitation 

(including a visible emissions standard) based on the maximum degree of

reduction for each regulated NSR pollutant which would be emitted from any

proposed major stationary source or major modification which the Technical

Secretary, on a case-by-case basis, taking into account energy, environmental, 

and economic impacts and other costs, determines is achievable for such source

or modification through application of production processes or available methods, 

systems, and techniques, including fuel cleaning or treatment or innovative fuel 

combustion techniques for control of such pollutant. In no event shall application

of best available control technology result in emissions of any pollutant which 

would exceed the emissions allowed by any applicable standard under 40 CFR 

part 60 or 61. If the Technical Secretary determines that technological or

economic limitations on the application of measurement methodology to a

particular emissions unit would make the imposition of an emissions standard 

infeasible, a design, equipment, work practice, operational standard, or 

combination thereof, may be prescribed instead to satisfy the requirement for the

application of BACT. Such standard shall, to the degree possible, set forth the

emissions reduction achievable by implementation of such design, equipment, 

work practice or operation, and shall provide for compliance by means which

achieve equivalent results.

54. “Reconstruction” means the replacement of components of an existing facility to 

such an extent that: 

August, 2009 (Revised) 24
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(i) The fixed capital cost of the new components exceeds 50 percent of the

fixed capital cost that would be required to construct a comparable entirely 

new facility, and 

(ii) It is technologically and economically feasible to meet the applicable 

standards set forth in this chapter. 

(iii) This part applies only in this chapter 1200-03-09 unless specified 

otherwise. 

55. “Clean coal technology” means any technology, including technologies applied at 

the pre-combustion, combustion, or post combustion stage, at a new or existing

facility which will achieve significant reductions in air emissions of sulfur dioxide 

or oxides of nitrogen associated with the utilization of coal in the generation of

electricity, or process steam which was not in widespread use as of November

15, 1990. 

56. “Clean coal technology demonstration project” means a project using funds 

appropriated under the heading “Department of Energy—Clean Coal

Technology”, up to a total amount of $2,500,000,000 for commercial 

demonstration of clean coal technology, or similar projects funded through 

appropriations for the Environmental Protection Agency. The Federal contribution

for a qualifying project shall be at least 20 percent of the total cost of the

demonstration project. 

57. “Temporary clean coal technology demonstration project” means a clean coal 

technology demonstration project that is operated for a period of 5 years or less, 

and which complies with the State implementation plan for the State in which the

project is located and other requirements necessary to attain and maintain the 

national ambient air quality standards during and after the project is terminated. 

58. “Re-powering” means replacement of an existing coal-fired boiler with one of the

following clean coal technologies: atmospheric or pressurized fluidized bed

combustion, integrated gasification combined cycle, magnetohydrodynamics,

direct and indirect coal-fired turbines, integrated gasification fuel cells, or as

determined by the Administrator, in consultation with the Secretary of Energy, a

derivative of one or more of these technologies, and any other technology 

capable of controlling multiple combustion emissions simultaneously with

improved boiler or generation efficiency and with significantly greater waste 

reduction relative to the performance of technology in widespread commercial 

use as of November 15, 1990. Re-powering shall also include any oil and/or gasfired unit that has been awarded clean coal technology demonstration funding as

of January 1, 1991, by the U.S. Department of Energy. The Technical Secretary 

shall give expedited consideration to permit applications for any source that

satisfies the requirements of this subsection and is granted an extension under 

section 409 of the Clean Air Act. 

(c) Applicability. 

1. The requirements of this paragraph apply to the construction of any new major 

stationary source (as defined in part (b)1. of this paragraph) or any project at an

existing major stationary source in an area designated as attainment or 

unclassifiable under sections 107(d)(1)(A)(ii) or (iii) of the Federal Clean Air Act. 

August, 2009 (Revised) 25
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

2. The requirements of subparagraphs (j), (k), (l), and (n); parts (e)1. 2., and 7.; and

parts (a)5., 6., 8., 9., and 10. of this paragraph apply to the construction of any 

new major stationary source or the major modification of any existing major 

stationary source, except as this rule otherwise provides. 

3. No new major stationary source or major modification to which the requirements

of subparagraphs (j), (k), (l), and (n); parts (e)1. 2., and 7.; and parts (a)5., 6., 8., 

9., and 10. of this rule apply shall begin actual construction without a permit that 

states that the major stationary source or major modification will meet those

requirements.

4. (i) Except as otherwise provided in sub-parts (c)5. and 6. of this paragraph, 

and consistent with the definition of major modification contained in part

(b)2. of this paragraph, a project is a major modification for a regulated

NSR pollutant if it causes two types of emissions increases—a significant 

emissions increase (as defined in part (b)34. of this paragraph), and a 

significant net emissions increase (as defined in parts (b)4. and 24.of this 

paragraph). The project is not a major modification if it does not cause a

significant emissions increase. If the project causes a significant emissions 

increase, then the project is a major modification only if it also results in a

significant net emissions increase. 

(ii) The procedure for calculating (before beginning actual construction) 

whether a significant emissions increase (i.e., the first step of the process) 

will occur depends upon the type of emissions units being modified, 

according to sub-parts (c)4.(iii) through (vi) of this paragraph. The 

procedure for calculating (before beginning actual construction) whether a 

significant net emissions increase will occur at the major stationary source 

(i.e., the second step of the process) is contained in the definition in part

(b)4. of this paragraph. Regardless of any such preconstruction

projections, a major modification results if the project causes a significant 

emissions increase and a significant net emissions increase. 

(iii) Actual-to-projected-actual applicability test for projects that only involve

existing emissions units. A significant emissions increase of a regulated

NSR pollutant is projected to occur if the sum of the difference between the

projected actual emissions (as defined in part (b)38. of this paragraph) and 

the baseline actual emissions (as defined in sub-parts (b)45.(i) and (ii) of

this paragraph) for each existing emissions unit, equals or exceeds the

significant amount for that pollutant (as defined in part (b)24. of this

paragraph). 

(iv) Actual-to-potential test for projects that only involve construction of a new 

emissions unit(s). A significant emissions increase of a regulated NSR 

pollutant is projected to occur if the sum of the difference between the

potential to emit (as defined in part (b)5. of this paragraph) from each new 

emissions unit following completion of the project and the baseline actual 

emissions (as defined in sub-part (b)45.(iii) of this paragraph) of these units

before the project equals or exceeds the significant amount for that

pollutant (as defined in part (b)24. of this paragraph). 

(v) Reserved. 

(vi) Hybrid test for projects that involve multiple types of emissions units. A

significant emissions increase of a regulated NSR pollutant is projected to

August, 2009 (Revised) 26
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

occur if the sum of the emissions increases for each emissions unit, using

the method specified in subparts (c)4.(iii) through (iv) of this paragraph as 

applicable with respect to each emissions unit, for each type of emissions

unit equals or exceeds the significant amount for that pollutant (as defined

in part (b)24. of this paragraph). For example, if a project involves both an

existing emissions unit and a new emissions unit, the projected increase is

determined by summing the values determined using the method specified 

in subpart (c)4.(iii) of this paragraph for the existing unit and determined 

using the method specified in subpart (c)4.(iv) of the paragraph for the new 

unit. 

5. For any major stationary source for a PAL for a regulated NSR pollutant, the

major stationary source shall comply with requirements under subparagraph (s) 

of this paragraph. 

6. Reserved. 

(d) Major stationary sources and major modifications are exempt from certain provisions of

this paragraph in accordance with the following: 

1. Major stationary sources or major modifications as defined in this paragraph shall 

not be subject to the requirements of this paragraph (except as provided in part 

(4)(a)7. of this paragraph) if: 

(i) The source or modification would be a major stationary source or major 

modification only if fugitive emissions, to the extent quantifiable, are

considered in calculating the potential to emit of the stationary source or

modification and such source does not belong to any of the categories 

listed under subpart (b)1.(i), or any other stationary source category which,

as of the (effective date of this rule) is being regulated under Chapters 

1200-03-11 and 1200-03-16. 

(ii) The source or modification was subject to the new construction rules and

regulations as in effect before June 3, 1981, and the owner or operator: 

(I) Obtained all final Federal, State, and local preconstruction approvals 

or permits necessary before June 3, 1981. 

(II) Commenced construction within 18 months of receipt of all

necessary Federal, State, and local preconstruction approvals or 

permits; and 

(III) Did not discontinue construction for a period of 18 months or more 

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

(iii) The source or modification was subject to the prevention of significant

deterioration rules and regulations as in effect before June 3, 1981, and

the owner or operator: 

(I) Submitted a completed application before June 3, 1981. 

(II) Commenced construction within 18 months of receipt of all

necessary Federal, State, and local preconstruction approvals or 

permits; and 

August, 2009 (Revised) 27
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(III) Did not discontinue construction for a period of 18 months or more 

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

(iv) The source or modification was not subject to this paragraph, with respect

to particulate matter, as in effect before June 2, 1990 and the owner or

operator: 

(I) Obtained all final Federal, State, and local preconstruction approvals 

or permits necessary before June 2, 1990. 

(II) Commenced construction within 18 months of receipt of all

necessary Federal, State, and local preconstruction approvals or 

permits; and 

(III) Did not discontinue construction for a period of 18 months or more 

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

2. A major stationary source or modification as defined in this paragraph that was 

subject to the prevention of significant deterioration rules and regulations, with

respect to particulate matter, as in effect before June 2, 1990 does not have to

meet the PM10 requirements effective on June 2, 1990 if the owner or operator: 

(i) Submitted a completed application (as determined by the Technical

Secretary) before June 2, 1990. 

(ii) Commenced construction within 18 months of receipt of all necessary

Federal, State, and local preconstruction approvals or permits; and

(iii) Did not discontinue construction for a period of 18 months or more and 

completed construction within the time frame as allowed in part 1200-03-

09-.01(4)(a)4. 

3. No major stationary source or major modification as defined in this paragraph

shall be subject to the requirements of this paragraph with respect to a particular 

pollutant if the owner or operator demonstrates that, as to that pollutant, the

source or modification is located in an area designated as nonattainment as

defined in Rule 1200-03-02-.01. 

4. Source impact and air quality analysis as required in parts (e)1., (e)3., and (e)7. 

of this paragraph shall not apply to a proposed major stationary source or major 

modification with respect to a particular pollutant, if the allowable emissions of 

that pollutant from a new source, or the net emissions increase of that pollutant 

from a modification, would be temporary and impact no Class I area and no area

where an applicable increment is known to be violated.

5. Source impact and air quality analysis as required in parts (e)1.,(e)3., and (e)7. of 

this paragraph as they relate to any maximum allowable increase for a Class II 

area do not apply to a major modification of a stationary source that was in

existence on March 1, 1978, if the net increase in allowable emissions of each 

regulated NSR pollutant from the modification after the application of best 

available control technology would be less than 50 tons per year. 

August, 2009 (Revised) 28
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

6. Air quality analysis as required in this paragraph may be exempted with respect 

to preconstruction monitoring for a particular pollutant by the Technical Secretary 

if: 

(i) The emissions increase of the pollutant from a new stationary source or

the net emissions increase of the pollutant from a modification would 

cause, in any area, air quality impacts less than the following amounts: 

(I) Carbon monoxide - 575 ug/m3

, 8-hour average; 

(II) Nitrogen dioxide - 14 ug/m3

, annual average; 

 

 (III) Particulate matter: 

 10 ug/m3

 of TSP, 24-hour average 

 10 ug/m3

 of PM10, 24-hour average; 

(IV) Sulfur dioxide - 13 ug/m3

, 24-hour average; 

(V) Ozone - no de minimis air quality level has been established.

However, any net increase of 100 tons per year or more of either

volatile organic compounds or nitrogen oxides subject to PSD would

be required to perform an ambient impact analysis, including the

gathering of ambient air quality data. 

(VI) Lead (elemental) - 0.1 ug/m3

, 3-month average; 

(VII) Fluorides - 0.25 ug/m3

, 24-hour average;

(VIII) Total reduced sulfur - 10 ug/ m3

, 1-hour average; 

(IX) Reduced sulfur compounds - 10 ug/ m3

, 1-hour average; 

(X) Hydrogen sulfide—0.2 μg/m3

, 1-hour average; or 

(ii) The pollutants are not listed in sub-part (d)6.(i); or

(iii) Representative existing ambient air quality data, consistent with the

requirements of the Ambient Monitoring Guideline for Prevention of

Significant Deterioration (PSD), EPA-450/4-87-007, are available for any 

pollutant as emitted by a major stationary source, or major modification; or 

(iv) The existing air pollutant levels are conservatively estimated to be less 

than the concentrations listed in subpart (i) of this part, and a monitoring

network may not reliably measure the predicted background 

concentrations. 

7. A portable stationary source which has previously received construction approval 

under the requirements of this paragraph may relocate if: 

(i) Emissions from the source would be temporary and would not exceed its 

allowable emissions; and 

(ii) The emissions from the source would impact no Class I area and no area

where an applicable increment is known to be violated; and 

August, 2009 (Revised) 29
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(iii) Notice shall be given to the Technical Secretary 30 days prior to the 

relocation, giving the new temporary location and the probable length of 

operation at the new location. 

8. Exclusions from Increment Consumption 

(i) Maximum allowable increases (ambient air increments) as specified in

subparagraph 1200-03-09-.01(4)(f) shall not apply to concentrations as

described below. 

(I) Concentrations attributable to the increase in emissions from 

stationary sources which have converted from the use of petroleum

products, natural gas, or both by reason of an order in effect under 

sections 2 (a) and (b) of the Energy Supply and Environmental 

Coordination Act of 1974 (or any superseding legislation) over the 

emissions from such sources before the effective date of such an

order; 

(II) Concentrations attributable to the increase in emissions from 

sources which have converted from using natural gas by reason of a

natural gas curtailment plan in effect pursuant to an applicable 

Federal law over the emissions from such sources before the 

effective date of such plan;

(III) Concentrations of particulate matter attributable to the increase in 

emissions from construction or other temporary emissions-related 

activities of new or modified sources; 

(IV) Concentrations attributable to the temporary increase in emissions of 

sulfur dioxide, particulate matter, or nitrogen oxides from stationary 

sources which are affected by plan revisions approved as meeting

the criteria specified in subpart 7.(iii). 

(ii) No exclusion of such concentrations shall apply more than five years after 

the effective date of the order to which item 7.(i)(I) refers or of the plan to

which item 7.(i)(II) refers, whichever is applicable. If both such order and

plan are applicable, no such exclusion shall apply more than five years 

after the later of such effective dates. 

(iii) For purposes of excluding concentrations pursuant to item 7.(i)(IV), the 

proposed plan revision shall: 

(I) Specify the time over which the temporary emissions increase of 

sulfur dioxide, particulate matter, or nitrogen oxides would occur. 

Such time is not to exceed two years in duration. 

(II) Specify that the time period for excluding certain contributions in 

accordance with item 7.(iii)(I) is not renewable. 

(III) Allow no emission increase from a stationary source which would:

I. Impact a Class I area or an area where an applicable

increment is known to be violated; or 

August, 2009 (Revised) 30
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

II. Cause or contribute to the violation of a national ambient air 

quality standard; 

(IV) Require limitations to be in effect at the end of the time period 

specified in accordance with item 7.(iii)(I) which would ensure that 

the emissions levels from stationary sources affected by the plan

revision would not exceed those levels occurring from such sources 

before the plan revision was approved. 

9. With the approval of the Technical Secretary, the requirements for air quality

monitoring of PM10 in part (e)7. of this paragraph may not apply to a particular

major stationary source or major modification if the owner or operator submitted 

an application for a permit on or before June 1, l988 and the Technical Secretary 

determines that the application as submitted before that date was complete, 

except with respect to the particulate matter monitoring requirements in part (e)7.

of this paragraph. 

10. Preapplication air quality analysis for ozone as required in part (e)7. of this

paragraph will not be necessary if the source owner or operator chooses to meet 

the lowest achievable emission rate (LAER) in lieu of meeting the requirements 

to apply best available control technology (BACT) for emissions of volatile

organic compounds or nitrogen oxides and is required to conduct 

post-construction monitoring for ozone. 

(e) The owner or operator of the proposed major stationary source or major modification: 

1. Shall demonstrate by performing source impact analysis that allowable emission

increases from the proposed source or modification, in conjunction with all other 

applicable emissions increases or reduction (including secondary emissions) 

would not cause or contribute to air pollution in violation of: 

(i) Any Tennessee ambient air quality standard in the source impact area. 

(ii) Any applicable maximum allowable increase over the baseline

concentration in any area. 

2. Shall submit all data necessary to make the analyses and determinations 

required under this paragraph. 

(i) The data shall include: 

(I) A description of the nature, location, design capacity, and typical

operating schedule of the source or modification, including

specifications and drawings needed for the review showing its 

design and plant layout. 

(II) A detailed proposed schedule for construction of the source or 

modification. 

(III) A detailed description as to what system of continuous emission 

reduction is planned for the source or modification, emission

estimates, and any other information necessary to determine that 

best available control technology (BACT) would be applied where

required by this paragraph. 

August, 2009 (Revised) 31
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(IV) Additional impact analysis

I. The impairment to visibility, soils, and vegetation that would

occur as a result of the source or modification and the

associated general commercial, residential, industrial, and

other growth. Vegetation having no significant commercial or

recreational value may be excluded from the analysis. 

II. The air quality impact projected for the area as a result of 

general commercial, residential, industrial, and other growth 

associated with the source or modification. 

III. The Technical Secretary may require monitoring of visibility in 

any Federal Class I area near the proposed new stationary

source or major modification, for such purposes and by such 

means as the Technical Secretary deems necessary and 

appropriate. 

(ii) Upon request by the Technical Secretary, the owner or operator shall also

provide information on: 

(I) The air quality impact of the source or modification, including 

meteorological and topographical data.

(II) The air quality impacts, and the nature and extent of any or all 

general commercial, residential, industrial, and other growth which

has occurred since the PSD baseline date in the area the source or 

modification would affect. Such data in the possession of the

Division shall be made available to the owner or operator. 

3. Shall, after construction of the stationary source or modification, conduct such

post-construction monitoring as the Technical Secretary determines is necessary 

to determine the effect emissions from the stationary source or modification may

have, or are having on air quality in any area. 

4. Shall meet the quality assurance requirements as specified in the Code of

Federal Regulations, Title 40, Part 58, Appendix B, as published July 1, 1991,

during the operation of monitoring stations for purposes of satisfying parts (e)3.

and (e)7. of this paragraph.

5. Shall insure that the major stationary source or the major modification be in

compliance with all applicable emission limitations of this Division 1200-03. 

6. Shall pay the cost of all publications required under this paragraph.

7. Shall perform the preapplication air quality analysis as outlined below: 

(i) Any application for a construction permit pursuant to the regulations of this 

paragraph shall contain an analysis of ambient air quality in the area that

the major stationary source or major modification would affect for each of 

the following pollutants: 

(I) For the source, each pollutant that it would have the potential to emit 

in a significant amount; 

August, 2009 (Revised) 32
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(II) For the modification, each pollutant for which it would result in a 

significant net emissions increase. 

(ii) For a pollutant for which an ambient air quality standard exists in these

regulations (other than non-methane hydrocarbons), the analysis shall

contain continuous air quality monitoring data gathered for purposes of 

determining whether emissions of that pollutant would cause or contribute

to a violation of the standard or any maximum allowable increase unless 

specifically exempted in subparagraph 1200-03-09-.01(4)(d). 

(iii) In general, the continuous air monitoring data that is required shall have 

been gathered over a period of one year and shall represent the year 

preceding receipt of the application, except that, if the Technical Secretary

determines that a complete and adequate analysis can be accomplished

with monitoring data gathered over a period shorter than one year (but not 

to be less than four months), the data that is required shall have been

gathered over at least that shorter period. 

(iv) (Reserved)

(v) With respect to any pollutant for which no Tennessee Ambient Air Quality 

Standard exists, the analysis shall contain such air quality monitoring data 

as is determined by the Technical Secretary and EPA to be necessary to 

assess ambient air quality for that pollutant in any area that the emissions 

of the pollutant would affect. 

(vi) The requirements for air quality monitoring of PM10 in subparts (ii) and (iii) 

of this part shall apply to a particular source or modification if the owner or 

operator of the source or modification submits an application for a permit

after June 1, 1988 and no later than December 1, 1988. The data shall

have been gathered over at least the period from February 1, 1988 to the

date the application becomes otherwise complete in accordance with the

provisions set forth under (i through v) of this part, except that if the

Technical Secretary determines that a complete and adequate analysis

can be accomplished with monitoring data over a shorter period (not to be 

less than 4 months), the data required in (i through v) shall have been

gathered over that shorter period. 

(vii) For any application that becomes complete, except as to the requirements 

of subparts (ii) and (iii) of this part pertaining to PM10, after December 1,

1988 and no later than August 1, 1989 the data that subpart (ii) requires

shall have been gathered over at least the period from August 1, 1988 to

the date the application becomes otherwise complete, except that if the

Technical Secretary determines that a complete and adequate analysis

can be accomplished with monitoring data over a shorter period (not to be 

less than 4 months), the data that subpart (ii) of this part requires shall

have been gathered over that shorter period. 

(f) Ambient Air Increments. In areas designated as class I, II, or III, increases in pollutant 

concentration over the baseline concentration shall be limited to the following: 

MAXIMUM ALLOWABLE INCREASE 

(Micrograms per cubic meter) 

Class I

August, 2009 (Revised) 33
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

Pollutant ug/m3

PM-10: 

 PM-10, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 

 PM-10, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

Sulfur dioxide:

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 

24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 

3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 2.5 

Class II

PM-10-:

 

PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

 

PM-10-, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 

Sulfur dioxide:

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

 

24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 

 

3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Class III

PM-10-: 

 

PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 

 

PM-10-, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 

Sulfur dioxide:

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 

 

24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 

 

August, 2009 (Revised) 34
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 

For any period other than an annual period, the applicable maximum allowable

increase may be exceeded during one such period per year at any one location.

(g) Area classifications - For the purpose of this paragraph, the following classifications 

shall apply: 

1. Class I Areas - Great Smoky Mountains National Park, Joyce Kilmer Slickrock

National Wilderness Area, and the Cohutta Wilderness Area. 

2. Class III Areas - None 

3. Class II Areas - Remainder of the state 

Areas in surrounding states are classified as specified in the EPA approved 

implementation plan for each adjoining state. 

(h) Restrictions on area classifications.

1. All of the following areas which were in existence on August 7, 1977, shall be

Class I areas and may not be redesignated: 

(i) International parks, 

(ii) National wilderness areas which exceed 5,000 acres in size, 

(iii) National memorial parks which exceed 5,000 acres in size, and 

(iv) National parks which exceed 6,000 acres in size. 

2. Areas which were redesignated as Class I before August 7, 1977, shall remain 

Class I, but may be redesignated as provided in this section. 

3. Any other area, unless otherwise specified in the legislation creating such as

area, is initially designated Class II, but may be redesignated as provided in this 

section.

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

(i) An area which as of August 7, 1977, exceeded 10,000 acres in size and

was a national monument, a national primitive area, a national preserve, a

national recreational area, a national wild and scenic river, a national

wildlife refuge, a national lakeshore or seashore; and 

(ii) A national park or national wilderness area established after August 7,

1977, which exceeds 10,000 acres in size. 

5. In redesignation, the procedures specified in 40 CFR 51.166(g) as of July 1,

1992, shall be applied. 

August, 2009 (Revised) 35
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(i) Ambient air ceilings 

1. No concentration of a pollutant shall exceed the concentration permitted under 

the Tennessee secondary ambient air quality standard (Chapter 1200-03-03, 

Table 1), or the concentration permitted under the Tennessee primary ambient 

air quality standard (Chapter 1200-03-03, Table 1), whichever concentration is 

lowest for the pollutant for a period of exposure. 

2. Except as permitted by Section 123 of the Clean Air Act Amendments of 1977,

dispersion techniques which exceed good engineering practice, and which were

implemented after December 31, 1970, will not be considered when determining

the emission limitations required for control of any pollutant. 

(j) Control Technology Review 

1. A major stationary source or major modification shall meet each applicable 

emissions limitation under this Division 1200-03 and the State Implementation 

Plan, and each applicable emission standard and standard of performance under 

40 CFR parts 60 and 61. 

2. A new major stationary source shall apply best available control technology for 

each regulated NSR pollutant that it would have the potential to emit in significant 

amounts. 

3. A major modification shall apply best available control technology for each

regulated NSR pollutant for which it would result in a significant net emissions 

increase at the source. This requirement applies to each proposed emissions

unit at which a net emissions increase in the pollutant would occur as a result of

a physical change or change in the method of operation in the unit. 

4. For phased construction projects, the determination of best available control 

technology shall be reviewed and modified as appropriate at the latest

reasonable time which occurs no later than 18 months prior to commencement of 

construction of each independent phase of the project. At such time, the owner 

or operator of the applicable stationary source may be required to demonstrate

the adequacy of any previous determination of best available control technology 

for the source. 

(k) Air Quality Models. 

All estimates of ambient concentrations required under this paragraph shall be based

on the applicable air quality models, data bases, and other requirements specified in 40

CFR Part 51 Appendix W, which is incorporated by reference. Where an air quality

impact model specified in 40 CFR Part 51 Appendix W is inappropriate, the model may

be modified or another model substituted by the Technical Secretary after consultation 

with the EPA Administrator. The use of a modified or substituted model must be subject

to notice and opportunity for public comment under procedures developed in

accordance with subparagraph (l) of this paragraph. 

(l) Public Participation 

1. Within 30 days after receipt of an application to construct, or any addition to such

application, the Technical Secretary shall advise the applicant of any deficiency

in the application or in the information submitted. In the event of such a

deficiency, the date of receipt of the application shall be, for the purpose of this

August, 2009 (Revised) 36
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

section, the date on which the Technical Secretary received all required 

information. 

2. The Technical Secretary shall make a final determination on the application no

later than 6 months after receipt of a complete application. If there is a need for

a longer period of time for review, it shall be agreed upon by mutual consent. In 

no case may this review period be longer than 1 year. The review process 

involves performing the following actions: 

(i) Make a preliminary determination whether construction should be

approved, approved with conditions, or disapproved.

(ii) Make available in at least one location in each air quality control region in

which the proposed source or modification would be constructed a copy of 

all materials the applicant submitted, a copy of the preliminary

determination, and a copy or summary of other materials, if any, 

considered in making the preliminary determination. 

(iii) Notify the public, by advertisement in a newspaper of general circulation in 

each air quality control region in which the proposed source or modification

would be constructed, of the application, the preliminary determination, the

degree of increment consumption that is expected from the source or

modification, and the opportunity for comment at a public hearing as well 

as written public comment. 

(iv) Send a copy of the notice of public comment to the applicant and to

officials and agencies having cognizance over the location where the 

proposed construction would occur as follows: State or local air pollution

control agencies, the chief executives of the city and county where the

source or modification would be located, any comprehensive regional land

use planning agency, the EPA Administrator, and any State or Federal

Land Manager whose lands may be affected by emissions from the source 

or modification. 

(v) Provide opportunity for a public hearing for interested persons to appear 

and submit written or oral comments on the air quality impact of the source

or modification, alternatives to it, the control technology required, and other 

appropriate considerations. 

(vi) Consider all written comments submitted within a time specified in the

notice of public comment and all comments received at any public 

hearing(s) in making a final decision on the approvability of the application.

No later than 10 days after the close of the public comment period, the

applicant may submit a written response to any comments submitted by 

the public or request an extension for this purpose. The Technical

Secretary shall consider the applicant’s response in making a final

decision. The Technical Secretary shall make all comments available for 

public inspection in the same locations where the Technical Secretary

made available preconstruction information relating to the proposed source 

or modification. 

(vii) Make a final determination whether construction should be approved,

approved with conditions, or disapproved pursuant to this paragraph. 

August, 2009 (Revised) 37
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(viii) Notify the applicant in writing of the final determination and make such

notification available for public inspection at the same location where the

Technical Secretary made available preconstruction information and public

comments relating to the source or modification. 

(ix) All public comments and written comments prepared by the Technical

Secretary will be maintained in the public depositories for one year from

the date of issuance of the final determination. 

(m) Violations of Ambient Air Quality Increments or Standards 

The Technical Secretary shall not issue a construction permit to a source or facility to

construct in an area where the increment is known to be violated or the air quality 

review predicts a violation of the increment or the ambient air quality standards except

in accordance with the following: 

1. All new or modified facilities shall utilize good engineering practice as determined 

by the Technical Secretary in designing stacks. In no event shall that part of a

stack which exceeds good engineering practice stack height be taken into

account for the purpose of determining the degree of emission limitation required

for the control of any pollutant for which there is an ambient air quality standard

established in Chapter 1200-03-03, Table 1. 

2. A major source or modification which would normally be required to meet BACT 

shall be required to meet the Lowest Achievable Emission Rate (LAER) for that 

type of source as determined at the time of the permit application. The term

“lowest achievable emission rate” shall be defined as found in part 1200-03-

09-.01(4)(b)50. of this rule.

3. If requirements of parts 1200-03-09-.01(4)(m)1. and 2. are not adequate to 

protect the increment or the ambient air quality standards, the source shall obtain

emission offsets, legally enforceable at or before the time of PSD permit 

issuance, sufficient to predict that the increment or air quality standard will no

longer be violated. The offsets shall be accomplished on or before the time of

the new source operation and demonstrated through a source test or through

another method acceptable to the Technical Secretary. 

4. A major stationary source or major modification will be considered to cause or 

contribute to a violation of an ambient air quality standard when such source or

modification would, at a minimum, exceed the following significance levels at any

locality that does not or would not meet the applicable ambient air quality 

standard: 

Pollutant Annual 24 hour 8 hour 3 hour 1 hour 

PM10

 1 5 

Sulfur 

 Dioxide 1 5 25

Carbon 

 Monoxide 500 2000

Nitrogen 

 Dioxide 1 

(Levels are in units of micrograms per cubic meter.) 

August, 2009 (Revised) 38
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

5. This rule does not exempt the source from meeting the requirements of 

paragraph 1200-03-09-.01(5). 

(n) Sources Impacting Class I Areas - Additional Requirements 

1. Notice to Federal Land Managers and the EPA Administrator 

The Technical Secretary shall promptly provide written notice of receipt of any 

permit application for a proposed major stationary source or major modification,

the emissions from which may affect a Class I area or which may have an

adverse impact on visibility in any Class I area to the EPA Administrator, the 

Federal Land Manager, and the Federal official charged with direct responsibility

for management of any lands within any such area. The Technical Secretary

shall transmit to the EPA Administrator and the Federal Land Manager a copy of

each permit application relating to a major stationary source or major 

modification which would affect a Class I area. This application shall include a

copy of all information relevant to the permit application and shall be given within

30 days of receipt of the permit application, and at least 60 days prior to any 

public hearing on the application for a permit to construct. Such notification shall 

include an analysis of the proposed source’s anticipated impacts on visibility in 

the Federal Class I area. The Technical Secretary shall also provide the EPA 

Administrator, the Federal Land Manager and such Federal officials with a copy 

of the preliminary determination and shall make available to them any materials 

used in making that determination promptly after the Technical Secretary makes 

it. In addition, notification of public hearings, final determinations, and permits

issued shall be provided. Finally, the Technical Secretary shall also notify all 

affected Federal Land Managers within 30 days of receipt of any advance 

notification of any such permit application. 

2. Denial - Impact on Air Quality Related Values

The Federal Land Manager of any such lands may demonstrate to the Technical 

Secretary that the emissions from a proposed source or modification would have

an adverse impact on the air quality-related values (including visibility) of those 

lands, notwithstanding that the change in air quality resulting from emissions 

from such source or modification would not cause or contribute to concentrations

which would exceed the maximum allowable increases for a Class I area. If the 

Technical Secretary concurs with such demonstration, then he shall not issue the

permit. 

3. Class I Variances 

The owner or operator of a proposed source or modification may demonstrate to

the Federal Land Manager that the emissions from such source or modification

would have no adverse impact on the air quality related values of any such lands

(including visibility), notwithstanding that the change in air quality resulting from

emissions from such source or modification would cause or contribute to

concentrations which would exceed the maximum allowable increases for a

Class I area. If the Federal Land Manager concurs with such demonstration and

he so certifies, the Technical Secretary, provided that the applicable 

requirements of this paragraph are otherwise met, may issue the permit with

such emission limitations as may be necessary as approved by the Tennessee 

Air Pollution Control Board to assure that emissions of sulfur dioxide, particulate 

matter, and nitrogen oxides would not exceed the following maximum allowable

increases over baseline concentration for such pollutants:

August, 2009 (Revised) 39
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

 Maximum

 allowable

 increase

Pollutant ug/m3 

PM-10-: 

 PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

 PM-10-, 24 hr. maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 

Sulfur dioxide:

 Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

 24-hr. maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 

 3-hr. maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 

Nitrogen dioxide: 

 Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 

4. Visibility Analysis 

The Technical Secretary shall consider any analysis performed by the Federal 

Land Manager, provided to the Technical Secretary within 30 days of the

notification and analysis required in part 1. of this subparagraph, that a proposed

new major stationary source or major modification may have an adverse impact

on visibility in any Federal Class I area. If the Technical Secretary concurs with 

the analysis then he shall not issue the permit. Where the Technical Secretary

finds that such an analysis does not demonstrate to the satisfaction of the

Technical Secretary that an adverse impact on visibility will result in the Federal

Class I area, the Technical Secretary must, in the notice of public hearing on the 

permit application, either explain his decision or give notice as to where the

explanation can be obtained. 

(o) Innovative Control Technology 

1. The owner or operator of a proposed major stationary source or major 

modification may request that the Technical Secretary approve a system of 

innovative control technology. 

2. The Technical Secretary, with the consent of the Governor(s) of the other 

affected State(s), may determine that the source or modification may employ a 

system of innovative control technology if: 

(i) The proposed control system would not cause or contribute to an

unreasonable risk to public health, welfare, or safety in its operation or 

function. 

(ii) The owner or operator agrees to achieve a level of continuous emissions 

reduction equivalent to that which would have been required under part 

1200-03-09-.01(4)(j)1. by a date specified by the Technical Secretary. 

Such date shall not be later than 4 years from the time of startup, or 7

years from permit issuance. 

(iii) The source or modification would meet the requirements of parts (e)1. and 

(j)1. based on the emission rate that the stationary source employing the 

August, 2009 (Revised) 40
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

system of innovative control technology would be required to meet on the 

date specified by the Technical Secretary.

(iv) The source or modification shall not: 

(I) Cause or contribute to a violation of an applicable ambient air quality 

standard; or

(II) Have an adverse impact on any Class I area; or

(III) Impact any area where an applicable increment is known to be 

violated; and

(v) All other applicable requirements including those for public participation

have been met. 

3. The Technical Secretary shall withdraw any approval to employ a system of 

innovative control technology made under this subparagraph, if: 

(i) The proposed system fails by the specified date to achieve the required 

continuous emissions reduction rate; or 

(ii) The proposed system fails before the specified date so as to contribute to

ambient air quality violations, or to an unreasonable risk to public health, 

welfare, or safety; or 

(iii) The Technical Secretary decides at any time that the proposed system is

unlikely to achieve the required level of control, or to protect the public

health, welfare, or safety. 

4. If a source or modification fails to meet the required level of continuous emission

reduction within the specified time period or the approval is withdrawn in 

accordance with part (o)3., the Technical Secretary may allow the source or 

modification up to an additional 3 years to meet the requirement for the

application of best available control technology through use of a demonstrated

system of control. 

(p) Reserved. 

(q) Reserved. 

(r) Reserved. 

(s) Actuals PALs. 

1. Applicability. 

(i) The Technical Secretary may approve the use of an actuals PAL for any 

existing major stationary source if the PAL meets the requirements in parts

(s)1. through 15. of this paragraph. The term “PAL” shall mean “actuals 

PAL” throughout sub-paragraph (s) of this paragraph. 

(ii) Any physical change in or change in the method of operation of a major 

stationary source that maintains its total source-wide emissions below the 

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PAL level, meets the requirements in parts (s)1. through 15. of this

paragraph, and complies with the PAL permit: 

(I) Is not a major modification for the PAL pollutant; 

(II) Does not have to be approved through the major NSR program; and 

(III) Is not subject to the provisions in part (a)6. of this paragraph 

(restrictions on relaxing enforceable emission limitations that the 

major stationary source used to avoid applicability of the major NSR 

program). 

(iii) Except as provided under item (s)1.(ii)(III) of this paragraph, a major 

stationary source shall continue to comply with all applicable Federal or 

State requirements, emission limitations, and work practice requirements 

that were established prior to the effective date of the PAL. 

2. Definitions. When a term is not defined in these sub-parts, it shall have the 

meaning given in subparagraph (b) of this rule or in the Federal Clean Air Act. 

(i) “Actuals PAL” for a major stationary source means a PAL based on the

baseline actual emissions (as defined in part (b)45. of this paragraph) of all

emissions units (as defined in part (b)8. of this paragraph) at the source,

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

(ii) “Allowable emissions” means “allowable emissions” as defined in part

(b)17. of this paragraph, except as this definition is modified according to

items (s)2.(ii)(I) and (II) of this paragraph. 

(I) The allowable emissions for any emissions unit shall be calculated

considering any emission limitations that are enforceable as a

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

(II) An emissions unit’s potential to emit shall be determined using the 

definition in part (b)5. of this paragraph, except that the words “or 

enforceable as a practical matter” should be added after “federally 

enforceable.” 

(iii) “Small emissions unit” means an emissions unit that emits or has the 

potential to emit the PAL pollutant in an amount less than the significant 

level for that PAL pollutant, as defined in part (b)24. of this paragraph or in

the Federal Clean Air Act, whichever is lower. 

(iv) “Major emissions unit” means: 

(I) Any emissions unit that emits or has the potential to emit 100 tons 

per year or more of the PAL pollutant in an attainment area; or 

(II) Any emissions unit that emits or has the potential to emit the PAL 

pollutant in an amount that is equal to or greater than the major 

source threshold for the PAL pollutant as defined by the Federal 

Clean Air Act for nonattainment areas. For example, in accordance 

with the definition of major stationary source in section 182(c) of the 

Federal Clean Air Act, an emissions unit would be a major emissions 

unit for VOC if the emissions unit is located in a serious ozone

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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nonattainment area and it emits or has the potential to emit 50 or 

more tons of VOC per year. 

(v) “Plantwide applicability limitation (PAL)” means an emission limitation 

expressed in tons per year, for a pollutant at a major stationary source, that

is enforceable as a practical matter and established source-wide in 

accordance with parts (s)1. through 15. of this paragraph. 

(vi) “PAL effective date” generally means the date of issuance of the PAL 

permit. However, the PAL effective date for an increased PAL is the date

any emissions unit that is part of the PAL major modification becomes

operational and begins to emit the PAL pollutant. 

(vii) “PAL effective period” means the period beginning with the PAL effective 

date and ending 10 years later. 

(viii) “PAL major modification” means, notwithstanding parts (b)2., 3., and 4. of 

this paragraph (the definitions for major modification and net emissions 

increase), any physical change in or change in the method of operation of

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

or greater than the PAL. 

(ix) “PAL permit” means the major NSR permit, the minor NSR permit, or the

State operating permit under a program that is approved into the plan, or 

the title V permit issued by the Technical Secretary that establishes a PAL 

for a major stationary source. 

(x) “PAL pollutant” means the pollutant for which a PAL is established at a 

major stationary source. 

(xi) “Significant emissions unit” means an emissions unit that emits or has the 

potential to emit a PAL pollutant in an amount that is equal to or greater

than the significant level (as defined in part (b)24. of this paragraph or in 

the Federal Clean Air Act, whichever is lower) for that PAL pollutant, but 

less than the amount that would qualify the unit as a major emissions unit

as defined in sub-part (s)2.(iv) of this paragraph. 

3. Permit application requirements. As part of a permit application requesting a

PAL, the owner or operator of a major stationary source shall submit the

following information in sub-parts (s)3.(i) through (iii) of this paragraph to the 

Technical Secretary for approval. 

(i) 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. 

(ii) Calculations of the baseline actual emissions (with supporting

documentation). Baseline actual emissions are to include emissions 

associated not only with operation of the unit, but also emissions 

associated with startup, shutdown, and malfunction. 

(iii) The calculation procedures that the major stationary source owner or 

operator proposes to use to convert the monitoring system data to monthly

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emissions and annual emissions based on a 12-month rolling total for each 

month as required by sub-part (s)13.(i) of this paragraph. 

4. General requirements for establishing PALs. 

(i) The Technical Secretary may establish a PAL at a major stationary source,

provided that at a minimum, the requirements in items (s)4.(i)(I) through

(VII) of this paragraph are met. 

(I) The PAL shall impose an annual emission limitation in tons per year, 

that is enforceable as a practical matter, for the entire major 

stationary source. For each month during the PAL effective period 

after the first 12 months of establishing a PAL, the major stationary

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 average, 

rolled monthly). For each month during the first 11 months from the

PAL effective date, the major stationary source owner or operator 

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. 

(II) The PAL shall be established in a PAL permit that meets the public 

participation requirements in part (s)5. of this paragraph. 

(III) The PAL permit shall contain all the requirements of part (s)7. of this

paragraph. 

(IV) The PAL shall include fugitive emissions, to the extent quantifiable, 

from all emissions units that emit or have the potential to emit the

PAL pollutant at the major stationary source. 

(V) Each PAL shall regulate emissions of only one pollutant. 

(VI) Each PAL shall have a PAL effective period of 10 years. 

(VII) The owner or operator of the major stationary source with a PAL 

shall comply with the monitoring, recordkeeping, and reporting

requirements provided in parts (s)12. through 14. of this paragraph

for each emissions unit under the PAL through the PAL effective 

period. 

(ii) At no time (during or after the PAL effective period) are emissions 

reductions of a PAL pollutant that occur during the PAL effective period 

creditable as decreases for purposes of offsets under sub-part (5)(b)2.(v) 

of this rule unless the level of the PAL is reduced by the amount of such

emissions reductions and such reductions would be creditable in the

absence of the PAL. 

5. Public participation requirements for PALs. PALs for existing major stationary 

sources shall be established, renewed, or increased, through a procedure that is

consistent with 40 CFR 51.160 and 51.161, subparagraph (l) of this paragraph, 

part (5)(b)3. of this rule, or 1200-03-09-.02(11)(f)8. This includes the requirement

that the Technical Secretary provide the public with notice of the proposed

approval of a PAL permit and at least a 30-day period for submittal of public 

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comment. The Technical Secretary must address all material comments before

taking final action on the permit. 

6. Setting the 10-year actuals PAL level. 

(i) Except as provided in sub-part (s)6.(ii) of this paragraph, the actuals PAL

level for a major stationary source shall be established as the sum of the 

baseline actual emissions (as defined in part (b)(45) of this paragraph) of

the PAL pollutant for each emissions unit at the source; plus an amount 

equal to the applicable significant level for the PAL pollutant under part 

(b)24. of this paragraph or under the Federal Clean Air Act, whichever is

lower. When establishing the actuals PAL level, for a PAL pollutant, only 

one consecutive 24-month period must be used to determine the baseline

actual emissions for all existing emissions units. Emissions associated with

units that were permanently shut down after this 24-month period must be

subtracted from the PAL level. The Technical Secretary shall specify 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 Technical Secretary is aware of prior to issuance of

the PAL permit. For instance, if the source owner or operator will be 

required to reduce emissions from industrial boilers in half from baseline 

emissions of 60 ppm NOX to a new rule limit of 30 ppm, then the permit

shall contain a future effective PAL level that is equal to the current PAL

level reduced by half of the original baseline emissions of such unit(s). 

(ii) For newly constructed units (which do not include modifications to existing 

units) on which actual construction began after the 24-month period, in lieu 

of adding the baseline actual emissions as specified in sub-part (s)6.(i) of 

this paragraph, the emissions must be added to the PAL level in an

amount equal to the potential to emit of the units. 

7. Contents of the PAL permit. The PAL permit shall contain, at a minimum, the 

information in sub-parts (s)7.(i) through (x) of this paragraph. 

(i) The PAL pollutant and the applicable source-wide emission limitation in

tons per year. 

(ii) The PAL permit effective date and the expiration date of the PAL (PAL

effective period). 

(iii) Specification in the PAL permit that if a major stationary source owner or 

operator applies to renew a PAL in accordance with part (s)10. of this 

paragraph before the end of the PAL effective period, then the PAL shall

not expire at the end of the PAL effective period. It shall remain in effect

until a revised PAL permit is issued by the Technical Secretary. 

(iv) A requirement that emission calculations for compliance purposes include

emissions from startups, shutdowns and malfunctions. 

(v) A requirement that, once the PAL expires, the major stationary source is

subject to the requirements of part (s)9. of this paragraph. 

(vi) The calculation procedures that the major stationary source owner or 

operator shall use to convert the monitoring system data to monthly 

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emissions and annual emissions based on a 12-month rolling total for each 

month as required by sub-part (s)13.(i) of this paragraph. 

(vii) A requirement that the major stationary source owner or operator monitor 

all emissions units in accordance with the provisions under part (s)13. of

this paragraph. 

(viii) A requirement to retain the records required under part (s)12. of this 

paragraph on site. Such records may be retained in an electronic format. 

(ix) A requirement to submit the reports required under part (s)14. of this 

paragraph by the required deadlines. 

(x) Any other requirements that the Technical Secretary deems necessary to 

implement and enforce the PAL. 

8. PAL effective period and reopening of the PAL permit. 

(i) PAL effective period. The Technical Secretary shall specify a PAL effective

period of 10 years. 

(ii) Reopening of the PAL permit. 

(I) During the PAL effective period, the Technical Secretary shall 

reopen the PAL permit to: 

I Correct typographical/calculation errors made in setting the PAL

or reflect a more accurate determination of emissions used to 

establish the PAL; 

II Reduce the PAL if the owner or operator of the major stationary 

source creates creditable emissions reductions for use as offsets 

under sub-part (5)(b)2.(v) of this rule; and 

III Revise the PAL to reflect an increase in the PAL as provided

under part (s)11. of this paragraph. 

(II) The Technical Secretary may reopen the PAL permit for the

following: 

I Reduce the PAL to reflect newly applicable Federal

requirements (for example, NSPS) 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 stationary source under the plan; and 

III Reduce the PAL if the Technical Secretary 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 AQRV that has been identified for a Federal Class I area 

by a Federal Land Manager and for which information is 

available to the general public. 

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(III) Except for the permit reopening in sub-item (s)8.(ii)(I)I of this 

paragraph for the correction of typographical/calculation errors that 

do not increase the PAL level, all reopenings shall be carried out in 

accordance with the public participation requirements of part (s)5. of 

this paragraph. 

9. Expiration of a PAL. Any PAL that is not renewed in accordance with the 

procedures in part (s)10. of this paragraph shall expire at the end of the PAL

effective period, and the requirements in sub-part (s)9.(i) through (v) of this

paragraph shall apply. 

(i) Each emissions unit (or each group of emissions units) that existed under

the PAL shall comply with an allowable emission limitation under a revised

permit established according to the procedures in items (s)9.(i)(I) and (II) of 

this paragraph. 

(I) Within the time frame specified for PAL renewals in sub-part (s)10.(ii) 

of this paragraph, the major stationary source shall submit a

proposed allowable emission limitation for each emissions unit (or 

each group of emissions units, if such a distribution is more

appropriate as decided by the Technical Secretary) by distributing

the PAL allowable emissions for the major stationary source among

each of the emissions units that existed under the PAL. If the PAL 

had not yet been adjusted for an applicable requirement that became 

effective during the PAL effective period, as required under sub-part 

(s)10.(v) of this paragraph, such distribution shall be made as if the 

PAL had been adjusted. 

(II) The Technical Secretary shall decide whether and how the PAL 

allowable emissions will be distributed and issue a revised permit 

incorporating allowable limits for each emissions unit, or each group

of emissions units, as the Technical Secretary determines is

appropriate. 

(ii) Each emissions unit(s) shall comply with the allowable emission limitation

on a 12-month rolling basis. The Technical Secretary 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. 

(iii) Until the Technical Secretary issues the revised permit incorporating 

allowable limits for each emissions unit, or each group of emissions units,

as required under item (s)9.(i)(II) of this paragraph, the source shall

continue to comply with a source-wide, multi-unit emissions cap equivalent

to the level of the PAL emission limitation. 

(iv) Any physical change or change in the method of operation at the major 

stationary source will be subject to major NSR requirements if such change 

meets the definition of major modification in parts (b)2. and 3. of this

paragraph. 

(v) The major stationary source owner or operator shall continue to comply

with any State or Federal applicable requirements (BACT, RACT, NSPS, 

etc.) that may have applied either during the PAL effective period or prior 

to the PAL effective period except for those emission limitations that had

August, 2009 (Revised) 47
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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been established pursuant to part (a)6. of this paragraph, but were

eliminated by the PAL in accordance with the provisions in item (s)1.(ii)(III) 

of this paragraph. 

10. Renewal of a PAL. 

(i) The Technical Secretary shall follow the procedures specified in part (s)5. 

of this paragraph in approving any request to renew a PAL for a major 

stationary source, and shall provide both the proposed PAL level and a

written rationale for the proposed PAL level to the public for review and

comment. During such public review, any person may propose a PAL level

for the source for consideration by the Technical Secretary. 

(ii) Application deadline. A major stationary source owner or operator shall

submit a timely application to the Technical Secretary to request renewal of

a PAL. A timely application is one that is submitted at least 6 months prior 

to, but not earlier than 18 months from, the date of permit expiration. This

deadline for application submittal is to ensure that the permit will not expire

before the permit is renewed. If the owner or operator of a major stationary

source submits a complete application to renew the PAL within this time 

period, then the PAL shall continue to be effective until the revised permit

with the renewed PAL is issued. 

(iii) Application requirements. The application to renew a PAL permit shall 

contain the information required in items (s)10.(iii)(I) through (IV) of this 

paragraph. 

(I) The information required in sub-parts (s)3.(i) through (iii) of this 

paragraph. 

(II) A proposed PAL level. 

(III) The sum of the potential to emit of all emissions units under the PAL 

(with supporting documentation). 

(IV) Any other information the owner or operator wishes the Technical 

Secretary to consider in determining the appropriate level for 

renewing the PAL. 

(iv) PAL adjustment. In determining whether and how to adjust the PAL, the 

Technical Secretary shall consider the options outlined in items (s)10.(iv)(I) 

and (II) of this paragraph. However, in no case may any such adjustment

fail to comply with item (s)10.(iv)(III) of this paragraph. 

(I) If the emissions level calculated in accordance with part (s)6. of this

paragraph is equal to or greater than 80 percent of the PAL level, the 

Technical Secretary may renew the PAL at the same level without 

considering the factors set forth in item (s)10.(iv)(II) of this 

paragraph; or 

(II) The Technical Secretary may set the PAL at a level that it 

determines to be more representative of the source’s baseline actual 

emissions, or that it determines to be appropriate considering air 

quality needs, advances in control technology, anticipated economic

growth in the area, desire to reward or encourage the source’s

August, 2009 (Revised) 48
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voluntary emissions reductions, or other factors as specifically 

identified by the Technical Secretary in its written rationale. 

(III) Notwithstanding items (s)10.(iv)(I) and (II) of this paragraph: 

I If the potential to emit of the major stationary source is less 

than the PAL, the Technical Secretary shall adjust the PAL to

a level no greater than the potential to emit of the source; and 

II The Technical Secretary shall not approve a renewed PAL

level higher than the current PAL, unless the major stationary 

source has complied with the provisions of part (s)11. of this 

paragraph (increasing a PAL). 

(v) If the compliance date for a State or Federal requirement that applies to 

the PAL source occurs during the PAL effective period, and if the Technical 

Secretary has not already adjusted for such requirement, the PAL shall be

adjusted at the time of PAL permit renewal or title V permit renewal,

whichever occurs first. 

11. Increasing a PAL during the PAL effective period. 

(i) The Technical Secretary may increase a PAL emission limitation only if the 

major stationary source complies with the provisions in items (s)11.(i)(I)

through (IV) of this paragraph. 

(I) The owner or operator of the major stationary source shall submit a

complete application to request an increase in the PAL limit for a

PAL major modification. Such application shall identify the emissions 

unit(s) contributing to the increase in emissions so as to cause the 

major stationary source’s emissions to equal or exceed its PAL. 

(II) As part of this application, the major stationary source owner or 

operator shall demonstrate that the sum of the baseline actual 

emissions of the small emissions units, plus the sum of the baseline

actual emissions of the significant and major emissions units 

assuming application of BACT equivalent controls, plus the sum of 

the allowable emissions of the new or modified emissions unit(s),

exceeds the PAL. The level of control that would result from BACT

equivalent controls on each significant or major emissions unit shall

be determined by conducting a new BACT analysis at the time the 

application is submitted, unless the emissions unit is currently 

required to comply with a BACT or LAER requirement that was 

established within the preceding 10 years. In such a case, the 

assumed control level for that emissions unit shall be equal to the

level of BACT or LAER with which that emissions unit must currently 

comply.

(III) The owner or operator obtains a major NSR permit for all emissions 

unit(s) identified in item (s)11.(i)(I) of this paragraph, regardless of

the magnitude of the emissions increase resulting from them (that is,

no significant levels apply). These emissions unit(s) shall comply

with any emissions requirements resulting from the major NSR 

process (for example, BACT), even though they have also become

subject to the PAL or continue to be subject to the PAL. 

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(IV) The PAL permit shall require that the increased PAL level shall be 

effective on the day any emissions unit that is part of the PAL major 

modification becomes operational and begins to emit the PAL

pollutant. 

(ii) The Technical Secretary shall calculate the new PAL as the sum of the

allowable emissions for each modified or new emissions unit, plus the sum 

of the baseline actual emissions of the significant and major emissions 

units (assuming application of BACT equivalent controls as determined in

accordance with item (s)11.(i)(II) of this paragraph), plus the sum of the

baseline actual emissions of the small emissions units. 

(iii) The PAL permit shall be revised to reflect the increased PAL level pursuant

to the public notice requirements of part (s)5. of this paragraph. 

12. Monitoring requirements for PALs 

(i) General requirements. 

(I) Each PAL permit must contain enforceable requirements for the 

monitoring system that accurately determines plantwide emissions of 

the PAL pollutant in terms of mass per unit of time. Any monitoring

system authorized for use in the PAL permit must be based on 

sound science and meet generally acceptable scientific procedures 

for data quality and manipulation. Additionally, the information

generated by such system must meet minimum legal requirements 

for admissibility in a judicial proceeding to enforce the PAL permit. 

(II) The PAL monitoring system must employ one or more of the four 

general monitoring approaches meeting the minimum requirements 

set forth in items (s)12.(ii)(I) through (IV) of this paragraph and must

be approved by the Technical Secretary. 

(III) Notwithstanding item (s)12.(i)(II) of this paragraph, you may also

employ an alternative monitoring approach that meets item

(s)12.(i)(I) of this paragraph if approved by the Technical Secretary. 

(IV) Failure to use a monitoring system that meets the requirements of 

this paragraph renders the PAL invalid. 

(ii) Minimum performance requirements for approved monitoring approaches.

The following are acceptable general monitoring approaches when

conducted in accordance with the minimum requirements in sub-parts

(s)12.(iii) through (ix) of this paragraph: 

(I) Mass balance calculations for activities using coatings or solvents;

(II) CEMS; 

(III) CPMS or PEMS; and 

(IV) Emission factors.

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(iii) Mass balance calculations. An owner or operator using mass balance 

calculations to monitor PAL pollutant emissions from activities using

coating or solvents shall meet the following requirements: 

(I) Provide a demonstrated means of validating the published content of 

the PAL pollutant that is contained in or created by all materials used

in or at the emissions unit; 

(II) Assume that the emissions unit emits all of the PAL pollutant that is 

contained in or created by any raw material or fuel used in or at the

emissions unit, if it cannot otherwise be accounted for in the process;

and 

(III) Where the vendor of a material or fuel, which is used in or at the 

emissions unit, publishes a range of pollutant content from such 

material, the owner or operator must use the highest value of the

range to calculate the PAL pollutant emissions unless the Technical 

Secretary determines there is site-specific data or a site-specific 

monitoring program to support another content within the range. 

(iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant

emissions shall meet the following requirements: 

(I) CEMS must comply with applicable Performance Specifications 

found in 40 CFR part 60, appendix B; and 

(II) CEMS must sample, analyze, and record data at least every 15

minutes while the emissions unit is operating. 

(v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor 

PAL pollutant emissions shall meet the following requirements: 

(I) The CPMS or the PEMS must be based on current site-specific data 

demonstrating a correlation between the monitored parameter(s) and

the PAL pollutant emissions across the range of operation of the

emissions unit; and 

(II) Each CPMS or PEMS must sample, analyze, and record data at 

least every 15 minutes, or at another less frequent interval approved 

by the Technical Secretary, while the emissions unit is operating. 

(vi) Emission factors. An owner or operator using emission factors to monitor 

PAL pollutant emissions shall meet the following requirements: 

(I) All emission factors shall be adjusted, if appropriate, to account for 

the degree of uncertainty or limitations in the factors’ development; 

(II) The emissions unit shall operate within the designated range of use 

for the emission factor, if applicable; and 

(III) If technically practicable, the owner or operator of a significant 

emissions unit that relies on an emission factor to calculate PAL

pollutant emissions shall conduct validation testing to determine a 

site-specific emission factor within 6 months of PAL permit issuance, 

August, 2009 (Revised) 51
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unless the Technical Secretary determines that testing is not 

required. 

(vii) A source owner or operator must record and report maximum potential

emissions without considering enforceable emission limitations or 

operational restrictions for an emissions unit during any period of time that 

there is no monitoring data, unless another method for determining

emissions during such periods is specified in the PAL permit. 

(viii) Notwithstanding the requirements in sub-parts (s)12.(iii) through (vii) of this 

paragraph, where an owner or operator of an emissions unit cannot 

demonstrate a correlation between the monitored parameter(s) and the

PAL pollutant emissions rate at all operating points of the emissions unit,

the Technical Secretary shall, at the time of permit issuance: 

(I) Establish default value(s) for determining compliance with the PAL

based on the highest potential emissions reasonably estimated at

such operating point(s); or 

(II) Determine that operation of the emissions unit during operating 

conditions when there is no correlation between monitored 

parameter(s) and the PAL pollutant emissions is a violation of the

PAL. 

(ix) Re-validation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means 

approved by the Technical Secretary. Such testing must occur at least

once every 5 years after issuance of the PAL. 

13. Recordkeeping requirements. 

(i) The PAL permit shall require an owner or operator to retain a copy of all 

records necessary to determine compliance with any requirement of

subparagraph (s) of this paragraph and of the PAL, including a

determination of each emissions unit’s 12-month rolling total emissions, for 

5 years from the date of such record. 

(ii) The PAL permit shall require an owner or operator to retain a copy of the

following records, for the duration of the PAL effective period plus 5 years: 

(I) A copy of the PAL permit application and any applications for 

revisions to the PAL; and 

(II) Each annual certification of compliance pursuant to title V and the 

data relied on in certifying the compliance. 

14. Reporting and notification requirements. The owner or operator shall submit

semi-annual monitoring reports and prompt deviation reports to the Technical 

Secretary in accordance with the applicable title V operating permit program. The

reports shall meet the requirements in sub-parts (s)14.(i) through (iii) of this

paragraph. 

(i) Semi-annual report. The semi-annual report shall be submitted to the

Technical Secretary within 30 days of the end of each reporting period.

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This report shall contain the information required in items (s)14.(i)(I)

through (VII) of this paragraph. 

(I) The identification of owner and operator and the permit number. 

(II) Total annual emissions (tons/year) based on a 12-month rolling total

for each month in the reporting period recorded pursuant to sub-part 

(s)13.(i) of this paragraph. 

(III) 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. 

(IV) A list of any emissions units modified or added to the major 

stationary source during the preceding 6-month period. 

(V) The number, duration, and cause of any deviations or monitoring

malfunctions (other than the time associated with zero and span 

calibration checks), and any corrective action taken. 

(VI) A notification of a shutdown of any monitoring system, whether the 

shutdown was permanent or temporary, the reason for the

shutdown, the anticipated date that the monitoring system will be 

fully operational or replaced with another monitoring system, and 

whether the emissions unit monitored by the monitoring system 

continued to operate, and the calculation of the emissions of the

pollutant or the number determined by method included in the 

permit, as provided by sub-part (s)12.(vii) of this paragraph. 

(VII) A signed statement by the responsible official (as defined by the 

applicable title V operating permit program) certifying the truth, 

accuracy, and completeness of the information provided in the

report. 

(ii) Deviation report. The major stationary source owner or operator shall 

promptly submit reports of any deviations or exceedance of the PAL

requirements, including periods where no monitoring is available. A report

submitted pursuant to item .02(11)(e)1.(iii)(III) of this chapter shall satisfy 

this reporting requirement. The deviation reports shall be submitted within

the time limits prescribed by item .02(11)(e)1.(iii)(III) of this chapter. The 

reports shall contain the following information: 

(I) The identification of owner and operator and the permit number; 

(II) The PAL requirement that experienced the deviation or that was 

exceeded; 

(III) Emissions resulting from the deviation or the exceedance; and 

(IV) A signed statement by the responsible official (as defined by the 

applicable title V operating permit program) certifying the truth, 

accuracy, and completeness of the information provided in the

report. 

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(iii) Re-validation results. The owner or operator shall submit to the Technical 

Secretary the results of any re-validation test or method within three

months after completion of such test or method. 

15. Transition requirements. 

(i) The Technical Secretary may not issue a PAL that does not comply with

the requirements in parts (s)1. through 15. of this paragraph after the

Administrator has approved regulations incorporating these requirements 

into the State Implementation Plan (SIP). 

(ii) The Technical Secretary may supersede any PAL which was established

prior to the date of approval of the plan by the Administrator with a PAL 

that complies with the requirements of parts (s)1. through 15. of this

paragraph. 

(t) If any provision of this section, or the application of such provision to any person or 

circumstance, is held invalid, the remainder of this section, or the application of such

provision to persons or circumstances other than those as to which it is held invalid, 

shall not be affected thereby. 

(5) Growth Policy 

(a) Attainment and Unclassified Areas 

The Technical Secretary shall not grant a permit for the construction or modification of

any air contaminant source in an attainment or unclassified area if such construction or 

modification will interfere with the maintenance of an air quality standard or PSD 

increment where applicable, or will violate any provisions of the Tennessee Air Quality

Act, or section 165 (a)(3) of the Clean Air Act, Amendments of 1990. 

(b) Nonattainment Areas 

1. Definitions as used in this subparagraph are not alphabetized. All terms not

defined herein shall have the meaning given them in Chapter 1200-3-2. 

(i) “Stationary source” means any building, structure, facility, or installation

which emits or may emit a regulated NSR pollutant. 

(ii) “Building, structure, facility, or installation” means all of the air 

contaminant-emitting activities which belong to the same industrial

grouping, are located on one or more contiguous or adjacent properties,

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

control). Air contaminant-emitting activities shall be considered as part of

the same industrial grouping if they belong to the same “Major Group” (i.e., 

which have the same two digit code) which is specified in the Standard

Industrial Classification Manual, 1972, as amended by the 1977

Supplement (U.S. Government Printing Office stock numbers 4101-0065

and 003-005-00176-0, respectively)). 

(iii) “Potential to emit” means the maximum capacity of a stationary source to

emit an air contaminant under its physical and operational design. Any 

physical or operational limitation on the capacity of the source to emit an

air contaminant, including air contaminant control equipment and

restrictions on hours of operation or on the type or amount of material

August, 2009 (Revised) 54
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

combusted, stored, or processed, shall be treated as part of its design only

if the limitation or the effect it would have on emissions is “legally

enforceable.” Secondary emissions do not count in determining the

“potential to emit” of a stationary source. 

(iv) “Major stationary source” means: 

(I) Any stationary source of air contaminants which emits, or has the 

potential to emit, 100 tons per year or more of any regulated NSR 

pollutant, except that lower emissions thresholds shall apply in areas 

subject to subpart 2, subpart 3, or subpart 4 of part D, title I of the 

Clean Air Act, according to sub-items I through VI of this item. 

I. 50 tons per year of either volatile organic compounds or nitrogen

oxides in any serious ozone non-attainment area. 

II. 50 tons per year of either volatile organic compounds or nitrogen

oxides in an area within an ozone transport region, except for 

any severe or extreme ozone non-attainment area. 

III. 25 tons per year of either volatile organic compounds or nitrogen 

oxides in any severe ozone non-attainment area. 

IV. 10 tons per year of either volatile organic compounds or nitrogen

oxides in any extreme ozone non-attainment area. 

V. 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources

contribute significantly to carbon monoxide levels in the area (as 

determined under rules issued by the Administrator of the U.S. 

EPA). 

VI. 70 tons per year of PM–10 in any serious non-attainment area

for PM–10; or 

(II) Any physical change that would occur at a stationary source not 

qualifying under item (iv)(I) as a major stationary source, if the change 

would constitute a major stationary source by itself. 

(III) A major stationary source that is major for volatile organic 

compounds or nitrogen oxides shall be considered major for ozone. 

(IV) The fugitive emissions of a stationary source shall not be included in

determining for any of the purposes of this Item, whether it is a major 

stationary source, unless the source belongs to one of the following

categories of stationary sources: 

I Coal cleaning plants (with thermal dryers); 

II Kraft pulp mills; 

III Portland cement plants; 

IV Primary zinc smelters; 

August, 2009 (Revised) 55
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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V Iron and steel mills; 

VI Primary aluminum ore reduction plants; 

VII Primary copper smelters; 

VIII Municipal incinerators (or combination thereof) capable of

charging more than 250 tons of refuse per day; 

IX Hydrofluoric, sulfuric, or nitric acid plants; 

X Petroleum refineries; 

XI Lime plants; 

XII Phosphate rock processing plants; 

XIII Coke oven batteries; 

XIV Sulfur recovery plants; 

XV Carbon black plants (furnace process); 

XVI Primary lead smelters; 

XVII Fuel conversion plants; 

XIII Sintering plants; 

XIX Secondary metal production plants; 

XX Chemical process plants; 

XXI Fossil-fuel boilers (or combination thereof) totaling more

than 250 million British thermal units per hour heat input; 

XXII Petroleum storage and transfer units with a total storage

capacity exceeding 300,000 barrels; 

XXIII Taconite ore processing plants; 

XXIV Glass fiber processing plants; 

XXV Charcoal production plants;

XXVI Fossil fuel-fired steam electric plants of more than 250 

million British thermal units per hour heat input; and 

XXVII Any other stationary source category which, as of August 7, 

1980, is being regulated under Chapter 1200-03-16, New 

Source Performance Standards or Chapter 1200-03-11, 

Hazardous Air Contaminants or Chapter 1200-03-31,

Standards For Hazardous Air Contaminants For Source 

Categories. 

August, 2009 (Revised) 56
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(v) Major modification: 

(I) “Major modification” means any physical change in or change in the 

method of operation of a major stationary source that would result in: 

I A significant emissions increase of a regulated NSR pollutant

(as defined in sub-part 1.(xlix) of this subparagraph). 

II. A significant net emissions increase of that pollutant from the

major stationary source.

(II) Any significant emissions increase (as defined in sub-part 1.(xxxix) of 

this subparagraph) from any emissions units or net emissions 

increase (as defined in sub-part 1(vi) of this subparagraph) at a

major stationary source that is significant for volatile organic 

compounds and/or nitrogen oxides shall be considered significant for 

ozone. 

(III) A physical change or change in the method of operation shall not 

include: 

I Routine maintenance, repair, and replacement; 

II Use of an alternative fuel or raw material by reason of any 

order under section 2(a) and (b) of the Energy Supply and

Environmental Coordination Act of 1974 (or any superseding

legislation) or by reason of a natural gas curtailment plan 

pursuant to the federal power act; 

III Use of an alternative fuel by reason of an order or Rule under 

Section 125 of the Clean Air Act Amendments, August 7,

1977; 

IV Use of an alternative fuel at a steam generating unit (burning

equipment of 250 million BTU’s per hour or larger) to the

extent that the fuel is generated from municipal solid waste as

determined by the Tennessee Division of Solid Waste

Management. 

V Use of an alternative fuel or raw material by a stationary

source which the source was capable of accommodating

before December 12, 1976, unless such change would be

prohibited under a legally enforceable permit condition which 

was established after December 12, 1976, pursuant to 40 CFR 

Part 52.21 (July 1, 1993), or under regulations approved 

pursuant to 40 CFR Part 51 Subpart I or 51.166 (July 1, 1993), 

or the source is approved to use under any permit issued 

pursuant to this paragraph; 

VI An increase in the hours of operation or in the production rate,

unless such change would be prohibited under a legally

enforceable permit condition which was established after 

December 21, 1976, pursuant to 40 CFR Part 52.21 (July 1,

1993) or regulations approved pursuant to 40 CFR Part 51

Subpart I or 40 CFR Part 51.166 (July 1, 1993). 

August, 2009 (Revised) 57
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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VII Any change in ownership at a stationary source. 

VIII Reserved. 

IX. The installation, operation, cessation, or removal of a temporary 

clean coal technology demonstration project, provided that the

project complies with: 

 

A. The State Implementation Plan for the State in which the 

project is located, and 

B. Other requirements necessary to attain and maintain the 

national ambient air quality standards during the project

and after it is terminated. 

(IV) This definition shall not apply with respect to a particular 

regulated NSR pollutant when the major stationary source is

complying with the requirements under part 10 of this 

subparagraph for a PAL for that pollutant. Instead, the definition

at item 10.(ii)(VIII) of this subparagraph shall apply. 

(V) Any physical change in, or change in the method of operation of, 

a major stationary source of volatile organic compounds that

results in any increase in emissions of volatile organic 

compounds from any discrete operation, emissions unit, or other 

pollutant emitting activity at the source shall be considered a 

significant net emissions increase and a major modification for 

ozone, if the major stationary source is located in an extreme

ozone non-attainment area that is subject to subpart 2, part D,

title I of the Clean Air Act. 

(VI) Any physical change in, or change in the method of operation of, 

a major stationary source of nitrogen oxides that results in any

increase in emissions of nitrogen oxides from any discrete 

operation, emissions unit, or other pollutant emitting activity at 

the source shall be considered a significant net emissions 

increase and a major modification for ozone, if the major 

stationary source is located in an extreme ozone non-attainment 

area that is subject to subpart 2, part D, title I of the Clean Air 

Act. 

(vi) Net emission increases 

(I) “Net emissions increase” means, with respect to any regulated NSR 

pollutant emitted by a major stationary source, the amount by which

the sum of the following exceeds zero: 

I The increase in emissions from a particular physical change or

change in the method of operation at a stationary source as 

calculated pursuant to sub-parts 2.(xii) through (xvii) of this 

subparagraph; and 

II Any other increases and decreases in actual emissions at the

major stationary source that are contemporaneous with the

August, 2009 (Revised) 58
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particular change and are otherwise creditable. Baseline actual

emissions for calculating increases and decreases under this 

sub-item II shall be determined as provided in sub-part 1.(xlvii) 

of this subparagraph, except that sub-items 1.(xlvii)(I)III and IV 

of this subparagraph shall not apply. 

(II) An increase or decrease in the actual emissions is contemporaneous 

with the increase from the particular change only if it occurs before 

the date that the increase from the particular change occurs. 

(III) An increase or decrease in actual emissions is creditable only if; 

I It occurs within a reasonable period to be specified by the

Technical Secretary; and 

II The Technical Secretary has not relied on it in issuing a permit 

for the source under regulations approved pursuant to 40 CFR 

Part 51 Subpart I, which permit is in effect when the increase

in actual emissions from the particular change occurs; and 

III Reserved. 

(IV) An increase in actual emissions is creditable only to the extent that 

the new level of actual emissions exceeds the old level. 

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

I The old level of actual emission or the old level of allowable

emissions which ever is the lower, exceeds the new level of 

actual emissions; and 

II It is enforceable as a practical matter at and after the time that 

actual construction on the particular change begins; and 

III The Technical Secretary has not relied on it in issuing any 

permit under regulation approved pursuant to 40 CFR Part 51

Subpart I or the Technical Secretary has not relied on it in

demonstrating attainment or reasonable further progress; and 

IV It has approximately the same qualitative significance for 

public health and welfare as that attributed to the increase

from the particular change; and. 

V Reserved. 

(VI) An increase that results from a physical change at a stationary 

source occurs when the emissions unit on which construction

occurred becomes operational and begins to emit a particular air 

contaminant. Any replacement unit that requires shakedown

becomes operational only after a reasonable shakedown period as

determined by the Technical Secretary, not to exceed 180 days. 

(VII) Item 1.(xiii)(I) of this subparagraph shall not apply for determining

creditable increases and decreases or after a change.

August, 2009 (Revised) 59
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(vii) “Emissions unit” means any part of a stationary source that emits or would

have the potential to emit any regulated NSR pollutant. This definition

includes an electric steam generating unit as defined in sub-part 1.(lvi) of

this subparagraph. For purposes of this section, there are two types of 

emissions units as described in items 1.(vii)(I) and (II) of this 

subparagraph. 

(I) A new emissions unit is any emissions unit which is (or will be) newly 

constructed and which has existed for less than 2 years from the

date such emissions unit first operated. 

(II) An existing emissions unit is any emissions unit that does not meet 

the requirements in item 1.(vii)(I) of this subparagraph. A 

replacement unit, as defined in sub-part 1.(xxxvi) of this 

subparagraph, is an existing emissions unit. 

(viii) “Secondary emissions” means emissions which would occur as a result of 

the construction or operation of a major stationary source or major 

modification, but do not come from the major stationary source or major 

modification itself. For the purposes of this rule, secondary emissions 

must be specific, well defined, quantifiable, and impact the same general

area as the stationary source or modification which causes the secondary

emissions. Secondary emissions include, emissions from any off-site

support facility which would not otherwise be constructed or increase its 

emissions except as a result of the construction or operation of the major 

stationary source of major modification. Secondary emissions do not 

include any emissions which come directly from a mobile source such as

emissions from the tailpipe of a motor vehicle, from a train, or from a

vessel. 

(ix) “Fugitive emissions” means those emissions which could not reasonably 

pass through a stack, chimney, vent or other functionally equivalent 

opening. 

(x) “Significant” means, in reference to a net emissions increase or the

potential of a source to emit any of the following air contaminants, a rate of

emissions that would equal or exceed any of the following rates: 

(I) Air Contaminant and Emissions Rate 

I Carbon monoxide: 100 tons per year (tpy) 

II Nitrogen Oxides: 40 tpy 

III Sulfur dioxide: 40 tpy 

IV Ozone: 40 tpy of an ozone precursor 

V Lead: 0.6 tpy 

VI PM10: 15 tpy 

(II) Notwithstanding the significant emissions rate for ozone in item (I) of 

this subpart, significant means, in reference to an emissions increase 

or a net emissions increase, any increase in actual emissions of 

August, 2009 (Revised) 60
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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either volatile organic compounds or nitrogen oxides that would 

result from any physical change in, or change in the method of

operation of, a major stationary source located in a serious or severe

ozone non-attainment area that is subject to subpart 2, part D, title I 

of the Clean Air Act, if such emissions increase of either volatile

organic compounds or nitrogen oxides exceeds 25 tons per year. 

(III) Reserved 

(IV) Notwithstanding the significant emissions rate for carbon monoxide

under item (I) of this subpart, significant means, in reference to an

emissions increase or a net emissions increase, any increase in 

actual emissions of carbon monoxide that would result from any 

physical change in, or change in the method of operation of, a major 

stationary source in a serious non-attainment area for carbon

monoxide if such increase equals or exceeds 50 tons per year, 

provided the Administrator of the U.S. EPA has determined that

stationary sources contribute significantly to carbon monoxide levels 

in that area. 

(V) Notwithstanding the significant emissions rates for ozone under 

items (I) and (II) of this subpart, any increase in actual emissions of 

either volatile organic compounds or nitrogen oxides from any 

emissions unit at a major stationary source of either volatile organic 

compounds or nitrogen oxides located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the Clean

Air Act shall be considered a significant net emissions increase. 

(xi) “Allowable emissions” means the emissions rate of a stationary source 

calculated using the maximum rated capacity of the source (unless the

source is subject to legally enforceable limits which restrict the operating 

rate, or hours of operation, or both) and the most stringent of the following: 

(I) The applicable standards set forth in: 

I The New Source Performance Standards (NSPS) or;

II The National Emission Standards for Hazardous Air Pollutants 

(NESHAP) contained in Chapter 1200-03-11 and Chapter

1200-03-31 or; 

III Limits established pursuant to the applicable standards under 

Division 1200-03 or; 

IV In the State Implementation Plan, emissions rates, specified as

a legally enforceable permit condition established pursuant to

this rule 1200-03-09-.01 including those with a future 

compliance date

(xii) “Legally enforceable” means all limitations and conditions which are

enforceable by the Technical Secretary and the EPA Administrator and are 

included under this Division 1200-03 and the State Implementation Plan. 

All orders issued by the Tennessee Air Pollution Control Board, operating

permits and their respective special conditions issued in accordance with 

the Act and Regulations, and any certificate authorized by the Act or the

August, 2009 (Revised) 61
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

Regulations shall be taken to public hearing and made part of the State 

Implementation Plan by the Board to be legally enforceable. 

(xiii) “Actual emissions” means the actual rate of emissions of a regulated NSR 

pollutant from an emissions unit, as determined in accordance with items 

1.(xiii)(I) through (III) of this subparagraph, except that this definition shall

not apply for calculating whether a significant emissions increase has 

occurred, or for establishing a PAL under part 10. of this subparagraph. 

Instead, sub-parts 1.(xxxix) and (xlvii) of this subparagraph shall apply for 

those purposes. 

(I) In general, actual emissions as of a particular date shall equal the

average rate, in tons per year, at which the emissions unit actually 

emitted the air contaminant during a consecutive 24-month period

which precedes the particular date and which is representative of 

normal source operation. The Technical Secretary may allow the 

use of a different time period upon a determination that it is more

representative of normal source operation. Actual emissions shall be 

calculated using the unit’s actual operating hours, production rates, 

and types of materials processed, stored, or combusted during the 

selected time period. 

(II) In the absence of reliable data, the Technical Secretary may 

presume that permitted-specific allowable emissions for the 

emissions unit are equivalent to the actual emissions of the 

emissions unit. 

(III) For any emissions unit that has not begun normal operations on the 

particular date, actual emissions shall equal the potential to emit of 

the unit on that date. 

(xiv) “Construction” means any physical change or change in the method of 

operation (including fabrication, erection, installation, demolition, or

modification of an emissions unit) that would result in a change in 

emissions. 

(xv) “Commence Construction” 

“Commence construction” as applied to a major stationary source or major 

modification means that the owner or operator has all necessary

construction permits and either has begun, or caused to begin, a

continuous program of actual on-site construction of the stationary source,

to be completed within a reasonable time; or entered into binding

agreements or contractual obligations, which cannot be canceled or 

modified without substantial loss to the owner or operator, to undertake a

program of actual construction of the stationary source to be completed

within a reasonable time. 

(xvi) “Necessary Preconstruction permits” means those permits required under 

the Federal air quality control laws and regulations which are part of the

approved SIP under Division 1200-03. 

(xvii) “Begin actual construction” means, in general, initiation of physical on-site

construction activities on an emissions unit which are of a permanent

nature. Such activities include, but are not limited to, installation of building

August, 2009 (Revised) 62
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

supports and foundations, laying of underground pipe work, and

construction of permanent storage structures. With respect to a change in

method of operation this term refers to those on-site activities, other than 

preparatory activities, which mark the initiation of the change. 

(xviii) “Lowest achievable emission rate” (LAER) means, for any source, the 

more stringent rate of emissions based on the following: 

(I) The most stringent emissions limitation which is contained in the

applicable standards under this Division 1200-03, or in any State

Implementation Plan for such class or category of stationary source, 

unless the owner or operator of the proposed source demonstrates 

that such limitations are not achievable; or 

(II) The most stringent emissions limitation which is achieved in practice 

by such class or category of stationary sources. This limitation, when

applied to a modification, means the lowest achievable emissions 

rate for the new or modified emissions units within the stationary

source. In no event shall the application of this term permit a 

proposed new or modified stationary source to emit any pollutant in 

excess of the amount allowable under applicable New Source

Standards of Performance.

(xix) “Significantly impact” means the contribution by a new stationary source or 

modification to the air quality in a nonattainment area in concentrations 

equal to or greater than the amount as follows: 

AVERAGING TIME AND APPLICABLE CONCENTRATION

Pollutant Annual 24 Hour 3 Hour 8 Hour 1 Hour. 

Sulfur 

 Dioxide 1 μg/m3 5 μg/m3 25 μg/m3 

 

PM10 1 μg/m3 5 μg/m3

 

Carbon 

 Monoxide 500 μg/m3 2000 

μg/m3

 

Nitrogen 

 Oxide 1 μg/m3

 

(xx) “Minor stationary source” means any source which is not a major stationary

source 

(xxi) “Minor modification” means

August, 2009 (Revised) 63
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(I) Any modification which is not a major modification; or 

(II) Any modification which is a physical change in or a change in the

method of operation of a minor stationary source provided the

change would not constitute a major stationary source by itself. 

(xxii) “Reasonable stack heights” means a stack height which will minimize air 

quality impact, not to exceed the Tennessee ambient air quality standards 

in any case. The Technical Secretary shall on a case-by-case basis, taking

into account the existing air quality in the area and the economic costs to 

the stationary source, determine the achievable stack height to be used by

the stationary source or modification. In no circumstance shall the stack 

height be less than 20 feet above ground level, or be required to exceed

stack height procedure. Stacks not emitting the nonattainment pollutants 

are not required to meet the minimum stack height requirement. Stationary

sources which emit volatile organic compounds and nitrogen oxide and are

located in ozone nonattainment areas will not be required to meet the 

minimum stack height requirement. 

(xxiii) “Reasonable Further Progress” (RFP) means such annual incremental 

reductions in emissions of the relevant air pollutant as are required by this 

part or may reasonably be required by the Technical Secretary or the EPA 

Administrator for the purpose of ensuring attainment of the applicable 

ambient air quality standard by the applicable date. 

(xxiv) “Reasonable available control technology” (RACT) means devices,

systems, process modifications, or other apparatus or techniques that are 

reasonably available taking into account: 

(I) The necessity of imposing such controls in order to attain and 

maintain an ambient air quality standard,

(II) The social, environmental and economic impact of such controls, 

and 

(III) Alternative means of providing for attainment and maintenance of 

such standard.

(xxv) “Compliance schedule” means a chronology of actions to be taken by a 

noncomplying source to bring it into full compliance with Division 1200-03

or permits issued thereto. Generally speaking, compliance schedule

increments will be divided into (1) engineering evaluation for problem 

solution, (2) procurement of the equipment and/or services necessary to

solve the problem, (3) on-site delivery of the equipment, (4) completion of 

the equipment’s installation including startup of said equipment and (5) 

source testing to establish the air contaminant emission levels of the 

completed installation if required by the Technical Secretary. 

(xxvi) “Air contaminant” is particulate matter, dust, fumes, gas, mist, smoke, or

vapor, or any combinations thereof, total suspended particulates, PM10, 

sulfur dioxide, carbon monoxide, ozone, nitrogen oxides, lead, and

gaseous fluorides expressed as HF. 

(xxvii) “Good Engineering Practice” (GEP) 

August, 2009 (Revised) 64
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(GEP) Stack height means the greater of: 

(I) 65 meters, measured from the ground-level elevation at the base of 

the stack or, 

(II) I For a stack in existence on January 12, 1979, and for which

the owner or operator had obtained all applicable permits or

approvals required under 40 CFR part 51 and 52 (July 1, 

1993) 

Hg = 2.5 H, 

provided the owner or operator produces evidence that this 

equation was actually relied on in establishing an emission

limitation; 

II For all other stacks, 

Hg = H + 1.5L 

where 

Hg = good engineering practice stack height, measured

from the ground-level elevation at the base of the stack. This

is the height at which structural downwash no longer 

influences computer modeled ambient impacts. 

H = height of nearby structure(s) measured from the 

ground-level elevation at the base of the stack. 

L = lesser dimension, height or projected width, of nearby

structure(s) 

provided that the Technical Secretary may require the use of a

field study or fluid model to verify GEP stack height for the

source; or 

(III) The height demonstrated by a fluid model or a field study approved 

by the Technical Secretary, which ensures that the emissions from a 

stack do not result in excessive concentrations of any air pollutant as

a result of atmospheric downwash, wakes, or eddy effects created

by the source itself, nearby structures or nearby terrain features. 

(xxviii) “Nonattainment Area” means any area that does not meet (or that 

contributes to ambient air quality in a nearby area that does not meet) any 

ambient air quality standard for the pollutant. As used in this chapter 

“nonattainment area” includes all the areas as defined by 

1200-03-02-.01(1)(ffff) plus any areas determined as not meeting any 

ambient air quality standards as a result of required monitoring as part of a 

construction permit application. The demonstration required under section 

165(a)(3) of the 1990 Clean Air Act, shall not apply to maximum allowable

increases for Class II areas in the case of an expansion or modification of

a major emitting facility which was in existence on the date of enactment of 

the Clean Air Act, Amendments of 1977, and whose allowable emissions of

August, 2009 (Revised) 65
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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air pollutants is established as required in sub section 165(a)(4) of the

1990 Clean Air Act. 

(xxix) (Reserved)

(xxx) “Volatile Organic Compounds” and “exempt compounds” have the same 

meaning as defined in Division 1200-3-18-.01 Definitions. 

(xxxi) “Ambient Air Quality Standard” (AAQS) means any Primary Ambient Air

Quality Standard or Secondary Ambient Air Quality Standard or Tennessee 

Ambient Air Quality Standard as defined in Chapter 1200-03-03. 

(xxxii) “Class I, Class II, or Class III” areas means areas of the state as defined by 

Division 1200-03-09-.01(4)(g). 

(xxxiii) “Ozone precursor” means volatile organic compounds and/or nitrogen

oxides. A proposed new source or a net emissions increase at an existing

source in an ozone transport region (or an ozone nonattainment area) can 

be classified as major based on either VOC or NOx emissions or both (but 

not in combination). That is, the determination of major must be made 

individually for each pollutant, since VOC and NOx emissions cannot be

added to meet the minimum level required for such a demonstration. 

(I) Notwithstanding sub-part (xxxiii) of this part, NOx shall not be 

considered an ozone precursor when: 

I Additional NOx emissions reductions would not be expected to 

decrease ozone; 

II The Administrator of EPA determines, for certain classes or

categories of sources (when the Administrator approves the

Tennessee State Implementation Plan or Plan revision), that

net air quality benefits would be greater in the absence of

further nitrogen oxides reductions from sources concerned;

and 

III. The Administrator of the U.S. EPA has granted a NOX waiver

applying the standards set forth under section 182(f) of the

Clean Air Act and the waiver continues to apply. 

(xxxiv)“Stack height procedures” means those procedures that must provide that 

the degree of emission limitation required of any source for control of any 

air pollutant must not be affected by so much of any source’s stack height 

that exceed good engineering practice or by any other dispersion 

technique, except as provided in 40 CFR Part 51.118(b) (July 1, 1993 ). 

Such procedures must provide that before the Technical Secretary issues

a permit to a source based on a good engineering practice stack height 

that exceeds the height allowed by 40 CFR Part 51.100(ii) (1) or (2)(July 1,

1993), the Technical Secretary must notify the public of the availability of 

the demonstration study and must provide opportunity for public hearing on

it. This subpart does not require such procedures to restrict in any manner 

the actual stack height of any source. 

(xxxv) “Portable Stationary Source” means any source that is mounted on any

chassis or skids and may be moved by the application of a lifting or pulling 

August, 2009 (Revised) 66
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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force. In addition, there shall be no cable, chain, turnbuckle, bolt or other 

means (except electrical connections) by which any piece of equipment is

attached or clamped to any anchor, slab, or structure, including bedrock 

that must be removed prior to the application of a lifting or pulling force for 

the purpose of transporting the unit, except that such connection as

deemed appropriate by the Technical Secretary may be exempted for 

safety considerations from the specified restrictions on a qualifying source. 

(xxxvi)Replacement unit means an emissions unit for which all the criteria listed in

items 1.(xxxvi)(I) through (IV) of this subparagraph are met. No creditable 

emission reductions shall be generated from shutting down the existing

emissions unit that is replaced. 

(I) The emissions unit is a reconstructed unit within the meaning of part

(4)(b)54. of this rule, or the emissions unit completely takes the place

of an existing emissions unit. 

(II) The emissions unit is identical to or functionally equivalent to the 

replaced emissions unit. 

(III) The replacement does not alter the basic design parameters of the 

process unit. 

(IV) The replaced emissions unit is permanently removed from the major 

stationary source, otherwise permanently disabled, or permanently

barred from operation by a permit that is enforceable as a practical 

matter. If the replaced emissions unit is brought back into operation,

it shall constitute a new emissions unit. 

(xxxvii) Reserved. 

(xxxviii) “Pollution prevention” means any activity that through process changes,

product reformulation or redesign, or substitution of less polluting raw 

materials, eliminates or reduces the release of air pollutants (including

fugitive emissions) and other pollutants to the environment prior to

recycling, treatment, or disposal; it does not mean recycling (other than

certain “in-process recycling” practices), energy recovery, treatment, or

disposal. 

(xxxix)“Significant emissions increase” means, for a regulated NSR pollutant, an

increase in emissions that is significant (as defined in sub-part 1.(x) of this 

subparagraph) for that pollutant. 

(xl) “Projected actual emissions” means, the maximum annual rate, in tons per

year, at which an existing emissions unit is projected to emit a regulated

NSR pollutant in any one of the 5 years (12-month period) following the

date the unit resumes regular operation after the project, or in any one of 

the 10 years following that date, if the project involves increasing the 

emissions unit’s design capacity or its potential to emit of that regulated

NSR pollutant and full utilization of the unit would result in a significant 

emissions increase or a significant net emissions increase at the major 

stationary source. 

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(I) In determining the projected actual emissions under sub-part 1.(xl) of 

this subparagraph before beginning actual construction, the owner or 

operator of the major stationary source: 

I Shall consider all relevant information, including 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 State or Federal regulatory

authorities, and compliance plans under the approved plan;

and 

II Shall include fugitive emissions to the extent quantifiable, and

emissions associated with startups, shutdowns, and 

malfunctions; and 

III Shall exclude, in calculating any increase in emissions that

results from the particular project, that portion of the unit’s 

emissions following the project that an existing unit could have

accommodated during the consecutive 24-month period used

to establish the baseline actual emissions under sub-part

1.(xlvii) of this subparagraph and that are also unrelated to the 

particular project, including any increased utilization due to

product demand growth; or, 

(II) In lieu of using the method set out in sub-items 1.(xl)(I)I through III of 

this subparagraph, may elect to use the emissions unit’s potential to 

emit, in tons per year, as defined under sub-part 1.(iii) of this 

subparagraph. 

(xli) Reserved. 

(xlii) “Nonattainment major new source review (NSR) program” means a major 

source preconstruction permit program that has been approved by the 

Administrator and incorporated into the SIP to implement the requirements 

of this subparagraph, or a program that implements 40 CFR 51, appendix

S, Sections I through VI. Any permit issued under such a program is a

major NSR permit. 

(xliii) “Continuous emissions monitoring system” (CEMS) means all of the 

equipment that may be required to meet the data acquisition and

availability requirements of this section, to sample, condition (if applicable), 

analyze, and provide a record of emissions on a continuous basis. 

(xliv) “Predictive emissions monitoring system” (PEMS) means all of the 

equipment necessary to monitor process and control device operational 

parameters (for example, control device secondary voltages and electric 

currents) and other information (for example, gas flow rate, O2 or CO2

concentrations), and calculate and record the mass emissions rate (for

example, lb/hr) on a continuous basis. 

(xlv) “Continuous parameter monitoring system” (CPMS) means all of the 

equipment necessary to meet the data acquisition and availability 

requirements of this section, to monitor process and control device

operational parameters (for example, control device secondary voltages 

August, 2009 (Revised) 68
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and electric currents) and other information (for example, gas flow rate, O2

or CO2 concentrations), and to record average operational parameter

value(s) on a continuous basis. 

(xlvi) “Continuous emissions rate monitoring system” (CERMS) means the total 

equipment required for the determination and recording of the pollutant

mass emissions rate (in terms of mass per unit of time). 

(xlvii) “Baseline actual emissions” means the rate of emissions, in tons per year, 

of a regulated NSR pollutant, as determined in accordance with items 

1.(xlvii)(I) through (IV) of this subparagraph. 

(I) For any existing electric utility steam generating unit, baseline actual 

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

actually emitted the pollutant during any consecutive 24-month

period selected by the owner or operator within the 5-year period

immediately preceding when the owner or operator begins actual 

construction of the project. The Technical Secretary shall allow the 

use of a different time period upon a determination that it is more

representative of normal source operation. 

I The average rate shall include fugitive emissions to the extent

quantifiable, and emissions associated with startups,

shutdowns, and malfunctions. 

II The average rate shall be adjusted downward to exclude any 

non-compliant emissions that occurred while the source was 

operating above any emission limitation that was legally

enforceable during the consecutive 24-month period. 

III. For a regulated NSR pollutant, when a project involves 

multiple emissions units, one consecutive 24-month period

must be used to determine the baseline actual emissions for 

the emissions units being changed. However, the Technical 

Secretary is authorized to allow the use of multiple, pollutant

specific consecutive 24-month baselines in determining the 

magnitude of a significant net emissions increase and the

applicability of major new source review requirements if all of 

the following conditions are met: 

A. Construction of a new source or modification would 

become subject to major new source review if a single 

2-year baseline is used for all pollutants.

B. One or more pollutants were emitted during such 2-

year period in amounts that were less than otherwise

permitted for reasons other than operations at a lower 

production or utilization rate. Qualifying examples 

include, but are not limited to, the voluntary use of: 

(A) a cleaner fuel than otherwise permitted in a

fuel burning operation (e.g., natural gas 

instead of coal in a multi-fuel boiler), 

(B) a coating with a lower VOC content than 

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otherwise permitted in a coating operation, 

(C) a voluntary improvement in the control 

efficiency of an air pollution control device or

the voluntary addition of a control device

where one did not exist before, and 

(D) alternate production methods, raw materials,

or products that result in lower emissions of

one or more pollutants. 

C. Use of alternate 2-year baselines for the pollutants 

described in Subitem II above would result in the 

construction of the new source or modification not being

subject to major new source review. 

D. The use of the multiple baselines is not prohibited by any

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is 

upon the permit applicant. The demonstration and the

Technical Secretary’s approval will be made a part of the 

permit record. 

IV The average rate shall not be based on any consecutive 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 sub-item 1.(xlvii)(I)II of this 

subparagraph. 

(II) For an existing emissions unit (other than an electric utility steam

generating unit), baseline actual emissions means the average rate, 

in tons per year, at which the emissions unit actually emitted the

pollutant during any consecutive 24-month period selected by the

owner or operator within the 10-year period immediately preceding

either the date the owner or operator begins actual construction of 

the project, or the date a complete permit application is received by 

the Technical Secretary for a permit required either under this 

subparagraph or under a plan approved by the Administrator,

whichever is earlier, except that the 10-year period shall not include

any period earlier than November 15, 1990. 

I The average rate shall include fugitive emissions to the extent

quantifiable, and emissions associated with startups,

shutdowns, and malfunctions. 

II The average rate shall be adjusted downward to exclude any 

non-compliant emissions that occurred while the source was 

operating above an emission limitation that was legally

enforceable during the consecutive 24-month period. 

III The average rate shall be adjusted downward to exclude any 

emissions that would have exceeded an emission limitation 

with which the major stationary source must currently comply, 

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had such major stationary source been required to comply with

such limitations during the consecutive 24-month period. 

However, if an emission limitation is part of a maximum

achievable control technology standard that the Administrator 

proposed or promulgated under 40 CFR 63, the baseline

actual emissions need only be adjusted if the State has taken

credit for such emissions reductions in an attainment

demonstration or maintenance plan consistent with the

requirements of item 2.(v)(VII) of this subparagraph. 

IV. For a regulated NSR pollutant, when a project involves 

multiple emissions units, one consecutive 24-month period

must be used to determine the baseline actual emissions for 

the emissions units being changed. However, the Technical 

Secretary is authorized to allow the use of multiple, pollutant

specific consecutive 24-month baselines in determining the 

magnitude of a significant net emissions increase and the

applicability of major new source review requirements if all of 

the following conditions are met: 

A. Construction of a new source or modification would 

become subject to major new source review if a single 

2-year baseline is used for all pollutants.

B. One or more pollutants were emitted during such 2-

year period in amounts that were less than otherwise

permitted for reasons other than operations at a lower 

production or utilization rate. Qualifying examples 

include, but are not limited to, the voluntary use of: 

(A) a cleaner fuel than otherwise permitted in a

fuel burning operation (e.g., natural gas 

instead of coal in a multi-fuel boiler), 

(B) a coating with a lower VOC content than 

otherwise permitted in a coating operation, 

(C) A voluntary improvement in the control

efficiency of an air pollution control device or

the voluntary addition of a control device

where one did not exist before, and 

(D) alternate production methods, raw materials,

or products that result in lower emissions of

one or more pollutants. 

C. Use of alternate 2-year baselines for the pollutants 

described in section B above would result in the

construction of the new source or modification not being

subject to major new source review. 

D. The use of the multiple baselines is not prohibited by any

applicable provision of the USEPA’s new source review 

regulations. 

August, 2009 (Revised) 71
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The burden for demonstrating that these conditions are met is upon

the permit applicant. The demonstration and the Technical

Secretary’s approval will be made a part of the permit record. 

V The average rate shall not be based on any consecutive 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 sub-items 1.(xlvii)(II)II and

III of this subparagraph. 

(III) For a new emissions unit, the baseline actual emissions 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. 

(IV) For a PAL for a major stationary source, the baseline actual 

emissions shall be calculated for existing electric utility steam 

generating units in accordance with the procedures contained in item

1.(xlvii)(I) of this subparagraph, for other existing emissions units in

accordance with the procedures contained in item 1.(xlvii)(II) of this 

subparagraph, and for a new emissions unit in accordance with the

procedures contained in item 1.(xlvii)(III) of this subparagraph. 

(xlviii) Reserved

(xlix) “Regulated NSR pollutant,” for purposes of this subparagraph, means the

following: 

(I) Nitrogen oxides or any volatile organic compounds; 

(II) Any pollutant for which a national ambient air quality standard has 

been promulgated; or 

(III) Any pollutant that is a constituent or precursor of a general pollutant 

listed under items 1.(xlix)(I) or (II) of this subparagraph, provided that 

a constituent or precursor pollutant may only be regulated under 

NSR as part of regulation of the general pollutant. 

(l) “Reviewing authority” means the State air pollution control agency, local

agency, other State agency, Indian tribe, or other agency authorized by the

Administrator to carry out a permit program under this subparagraph and

40 CFR 51.166, or the Administrator in the case of EPA-implemented 

permit programs under 40 CFR 52.21. 

(li) “Project” means a physical change in, or change in the method of

operation of, an existing major stationary source. 

(lii) “Best available control technology” (BACT) means an emissions limitation 

(including a visible emissions standard) based on the maximum degree of

reduction for each regulated NSR pollutant which would be emitted from

any proposed major stationary source or major modification which the

Technical Secretary, on a case-by-case basis, taking into account energy, 

environmental, and economic impacts and other costs, determines is

achievable for such source or modification through application of 

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production processes or available methods, systems, and techniques,

including fuel cleaning or treatment or innovative fuel combustion 

techniques for control of such pollutant. In no event shall application of 

best available control technology result in emissions of any pollutant which

would exceed the emissions allowed by any applicable standard under 40

CFR part 60 or 61. If the Technical Secretary determines that technological

or economic limitations on the application of measurement methodology to 

a particular emissions unit would make the imposition of an emissions 

standard infeasible, a design, equipment, work practice, operational 

standard, or combination thereof, may be prescribed instead to satisfy the 

requirement for the application of BACT. Such standard shall, to the 

degree possible, set forth the emissions reduction achievable by

implementation of such design, equipment, work practice or operation, and

shall provide for compliance by means which achieve equivalent results. 

This definition does not apply to minor stationary sources and minor 

modifications proposing to construct in a nonattainment area. For these

sources, the definition in subparagraph (2)(d) of this rule applies. 

(liii) “Prevention of Significant Deterioration (PSD) permit” means any permit

that is issued under a major source preconstruction permit program that

has been approved by the Administrator and incorporated into the SIP to

implement the requirements of 40 CFR 51.166. Any permit issued under 

such a program is a major NSR permit. 

(liv) Federal Land Manager means, with respect to any lands in the United

States, the Secretary of the department with authority over such lands. 

(lv) Reserved

(lvi) “Electric utility steam generating unit” (EUSGU) means any steam electric

generating unit that is constructed for the purpose of supplying more than

one-third of its potential electric output capacity and more than 25 MW

electrical output to any utility power distribution system for sale. Any steam

supplied to a steam distribution system for the purpose of providing steam

to a steam-electric generator that would produce electrical energy for sale 

is also considered in determining the electrical energy output capacity of 

the affected facility. 

(lvii) “Temporary clean coal technology demonstration project” means a clean

coal technology demonstration project that is operated for a period of 5 

years or less, and which complies with the State Implementation Plan for 

the State in which the project is located and other requirements necessary 

to attain and maintain the national ambient air quality standards during the

project and after it is terminated. 

(lviii) “Clean coal technology” means any technology, including technologies 

applied at the precombustion, combustion, or post combustion stage, at a 

new or existing facility which will achieve significant reductions in air 

emissions of sulfur dioxide or oxides of nitrogen associated with the

utilization of coal in the generation of electricity, or process steam which

was not in widespread use as of November 15, 1990.

(lix) Clean coal technology demonstration project means a project using funds 

appropriated under the heading “Department of Energy-Clean Coal 

Technology,” up to a total amount of $2,500,000,000 for commercial 

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demonstration of clean coal technology, or similar projects funded through 

appropriations for the Environmental Protection Agency. The Federal 

contribution for a qualifying project shall be at least 20 percent of the total

cost of the demonstration project. 

2. No major stationary source or major modification to which the requirements of

this subparagraph apply shall begin actual construction without a permit that 

states that the stationary source or modifications will meet the requirements of

this Paragraph. 

The requirements of this subparagraph shall apply to any new stationary source

or major modification that is major for a regulated NSR pollutant, or precursor to

a regulated NSR pollutant as applicable, if the stationary source or modification

would be constructed anywhere in an area designated nonattainment (as of the 

date of the permit issued in accordance with this subparagraph) for such 

pollutant pursuant to the Clean Air Act Title I Part A Section 107(d).

The requirements of this subparagraph shall apply to each nonattainment 

pollutant (and in some cases each precursor to the nonattainment pollutant) that

the source will emit, or will have the potential to emit, in major amounts. In the 

case of a modification, the requirements shall apply to the significant net

emissions increase of each nonattainment pollutant (and each precursor to the 

nonattainment pollutant, as applicable) for which the source is major. 

(i) All new stationary sources or modifications shall utilize “stack height

procedures.” 

(ii) All minor stationary sources, and minor modifications proposing to 

construct in a nonattainment area shall utilize best available control

technology (BACT), as defined in subparagraph (2)(d) of this rule, for the

nonattainment pollutant as specified by the Technical Secretary at the time 

of the completed permit application, but all major stationary sources and

major modifications are required to install LAER in nonattainment areas for 

the nonattainment pollutant. 

(iii) Major stationary sources or major modifications shall meet the following 

criteria: 

(I) A major stationary source or major modification shall meet each 

applicable emissions limitation under the State Implementation Plan

and each applicable requirement for sources subject to the New 

Source Performance Standards, and the National Emission

Standards for Hazardous Air Pollutants. 

(II) A new major stationary source shall apply the lowest achievable

emission rate for each contaminant for which the area is designated

nonattainment that it would have the potential to emit in an amount

sufficient to make the source or modification a major stationary 

source or modification. This provision applies to each new 

emissions unit at which emissions would occur. 

(III) A major modification shall apply the lowest achievable emission rate 

for each air contaminant for which the area is designated

nonattainment and for which it would result in a significant net 

emissions increase at the source. This requirement applies to each

August, 2009 (Revised) 74
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

proposed emissions unit at which a net emissions increase in the air 

contaminant would occur as the result of a physical change or

change in the method of operation in the unit. 

(IV) For phased construction projects, the determination of lowest

achievable emission rate shall be reviewed and modified as

appropriate at the latest reasonable time which occurs no later than 

18 months prior to commencement of construction of each

independent phase of the project. At such time, the owner or 

operator of the applicable stationary source may be required to 

demonstrate the adequacy of any previous determination of the 

lowest achievable emission rate. 

(V) The Technical Secretary shall, for each new major source and major 

modification, submit to the RACT/BACT/LAER Clearinghouse within

60 days of issuance of the permit, all information on the emissions 

prevention or control technology for the new major source or major 

modification. 

(iv) Reasonable Further Progress (RFP) 

(I) Timing and exemptions: 

I By the time that the proposed source or modification is to 

commence operation, sufficient offsetting emissions reductions

shall be in effect such that the total emissions from existing 

sources in the area, from new or modified sources which are

not major stationary sources, and from the proposed source

will be sufficiently less than total emissions from existing

sources prior to the application for such permit to construct or

modify so as to represent (when considered together with the

plan provisions required under the Clean Air Act Title I Part D 

Subpart 1 Section 172 (as amended November 15,1990) 

reasonable further progress; or 

II In the case of a new major stationary source or major 

modification which is located in a zone (within the 

nonattainment area) identified by the Administrator of EPA, in 

consultation with the Secretary of Housing and Urban

Development, as a zone to which economic development 

should be targeted, the emissions of such air contaminant

resulting from the proposed new or modified major stationary

source will not cause or contribute to emissions levels which 

exceed the allowance permitted as contained in the State’s 

approved Implementation Plan pursuant to the Clean Air Act 

Title I Part D Subpart 1 Section 172(c)(4) (as amended 

November 15,1990). 

(II) For the purposes of satisfying the requirements of sub-item (iv)(I)I. of 

this sub-part, the determination of total emissions at both the time

prior to the application for a permit subject to the requirements of this

sub-part and the time such permitted source or modification would

commence operation, shall be made by the Technical Secretary in a 

manner consistent with the assumptions in the applicable

implementation plan approved by the Administrator of EPA 

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concerning baseline emissions for the demonstration of reasonable 

further progress and attainment of the ambient air quality standards 

for the particular air contaminant subject to review under this subpart. 

(v) Emissions Offsets 

(I) Prior to the issuance of a permit under this sub-part, legally 

enforceable emission offsets shall be obtained from the same source 

or other sources in the same non-attainment area, except that such

emissions reduction may be obtained from a source in another nonattainment area if: 

I. The other area has an equal or higher non-attainment

classification than the area in which the source is located; and, 

II. Emissions from such other area contribute to a violation of an 

air quality standard in the non-attainment area in which the 

proposed new or modified source would construct. 

(II) By the time that the new or modified source commences operation,

such reductions shall be in place such that the total tonnage of 

emissions of any applicable non-attainment air contaminant allowed

from the proposed new source, or net emissions increase from the

modification, shall be offset by an equal or greater reduction, as 

applicable, in the actual emissions of such air contaminant from the

same or other sources.

(III) In meeting the requirements of item (v)(II) of the sub-part for ozone 

non-attainment areas that are subject to subpart 2, part D, title I of

the Clean Air Act, the ratio of total actual emission reductions of 

Volatile Organic Compounds and/or Nitrogen Oxides to the net 

emissions increase of Volatile Organic Compounds and/or Nitrogen 

Oxides shall be as follows: 

I. In any Marginal non-attainment area for ozone - at least 1.1 to 

1; 

II. In any Moderate non-attainment area for ozone - at least 1.15

to 1; 

III. In any Serious non-attainment area for ozone - at least 1.2 to 

1; 

IV. In any Severe non-attainment area for ozone - at least 1.3 to 1; 

V. In any Extreme non-attainment area for ozone - at least 1.5 to

1. 

(IV) Within an ozone transport region that is subject to subpart 2, part D, 

title I of the Clean Air Act, for any area designated for ozone

attainment, unclassified, or Marginal non-attainment, the ratio of total

actual emission reductions of Volatile Organic Compounds and/or 

Nitrogen Oxides to net emissions increase of Volatile Organic

Compounds and/or Nitrogen Oxides shall be at least 1.15 to 1. 

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(V) I. Emissions reductions achieved by shutting down an existing

emission unit or curtailing production or operating hours may be 

generally credited for offsets if they meet the requirements in 

sections IA and B of this item. 

A. Such reductions are surplus, permanent, quantifiable, 

and federally enforceable. 

B. The shutdown or curtailment occurred after the last day

of the base year for the SIP planning process. For 

purposes of this paragraph, the Technical Secretary may 

choose to consider a prior shutdown or curtailment to

have occurred after the last day of the base year if the 

projected emissions inventory used to develop the

attainment demonstration explicitly includes the 

emissions from such previously shutdown or curtailed

emission units. However, in no event may credit be 

given for shutdowns that occurred before August 7, 

1977. 

II. Emissions reductions achieved by shutting down an existing

emissions unit or curtailing production or operating hours and

that do not meet the requirements in section IB of this item may

be generally credited only if: 

A. The shutdown or curtailment occurred on or after the

date the construction permit application is filed; or 

B. The applicant can establish that the proposed new 

emissions unit is a replacement for the shutdown or 

curtailed emissions unit, and the emissions reductions

achieved by the shutdown or curtailment met the

requirements of section IA of this item. 

(VI) With respect to a proposed increase in VOC emissions, no

emissions credit shall be allowed for reductions in any organic 

compound specifically excluded from the definitions of “VOC” in this 

Division 1200-3. 

(VII) Credit for an emissions reduction may be claimed to the extent that 

the reduction has not been relied on in any permit already issued 

under regulations approved pursuant to 40 CFR Parts 51, 52, and 

70,(July 1, 1993) or the State has not relied on it in demonstrating 

attainment or reasonable further progress. Incidental emissions 

reductions which are not otherwise required under the federal Clean

Air Act (As amended November 15, 1990) may be credible as 

emissions reductions for such purposes if such emissions reductions

meet the applicable requirements of this part. 

(VIII) Procedures relating to the permissible locations of offsetting 

emissions shall be followed which are at least as stringent as those

set out in 40 CFR Part 51, Appendix S, Section IV.D. (July 1, 1993 ). 

(IX) Reserved. 

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(X) Reserved. 

(XI) The total tonnage of increased emissions, in tons per year, resulting

from a major modification that must be offset in accordance with

section 173 of the Federal Clean Air Act shall be determined by

summing the difference between the allowable emissions after the

modification (as defined by sub-part 1.(xi) of this subparagraph) and

the actual emissions before the modification (as defined in sub-part

1.(xiii) of this subparagraph) for each emissions unit. 

(XII) Where the emissions limit under this division 1200-03 allows greater 

emissions than the potential to emit of the source, emissions offset 

credit will be allowed only for control below this potential; 

(XIII) For an existing fuel combustion source, credit shall be based on the 

allowable emissions under this division 1200-03 for the type of fuel

being burned at the time the application to construct is filed. If the

existing source commits to switch to a cleaner fuel at some future 

date, emissions offset credit based on the allowable (or actual) 

emissions for the fuels involved is not acceptable, unless the 

permit is conditioned to require the use of a specified alternative

control measure which would achieve the same degree of

emissions reduction should the source switch back to a dirtier fuel

at some later date. The Technical Secretary shall ensure that

adequate long-term supplies of the new fuel are available before

granting emissions offset credit for fuel switches 

(XIV) Within an ozone non-attainment area that is subject to subpart 1,

part D, title I of the Clean Air Act (but is not subject to subpart 2, 

part D, title I of the Act, including 8-hour ozone non-attainment

areas subject to 40 CFR 51.902(b)), the ratio of total actual

emissions reductions of either volatile organic compound or

nitrogen oxides to the emissions increase of either volatile organic 

compounds or nitrogen oxides shall be at least 1:1. 

(vi) In a nonattainment area, prior to the issuance of a permit to a new major 

stationary source or major modification an analysis of alternate sites, sizes,

production processes, and environmental control techniques for the

proposed source shall be made. A permit shall only be issued if the

benefits of the proposed source significantly outweigh the environmental

and social costs imposed on the public as a result of the sources location,

construction, or modification in the nonattainment area. The Technical

Secretary shall require the submittal of such information as he deems 

necessary for this analysis.

(vii) The Technical Secretary shall not issue a permit to any major stationary

source or major modification locating in or significantly impacting a

nonattainment area unless all other sources owned or operated by the

applicant (or any entity controlling, controlled by, or under common control

with the applicant) anywhere in the State are in compliance or on an 

approved compliance schedule. 

(viii) If the nonattainment area is designated as attainment by the EPA 

Administrator between the date construction is approved under this 

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subparagraph and before the new source start up date, the source has the

option of applying for a new construction permit and relief from the

requirements of this subparagraph. 

(I) Any permit issued under this part shall remain in effect, unless it 

expires under subpart (xi) of this part or is rescinded. 

(II) The Technical Secretary shall grant an application for rescission if 

the application shows that this part would not apply to the source or 

modification. 

(III) If the Technical Secretary rescinds a permit under this subparagraph, the public shall be given adequate notice of the

rescission. Publication by the Technical Secretary of an 

announcement of rescission in a newspaper of general circulation in

the affected region within 60 days of the rescission shall be

considered adequate notice. 

(ix) At such time that a particular source or modification becomes a major 

stationary source or major modification solely by virtue of a relaxation in 

any “legally enforceable limitation” which was established after August 7, 

1980, on the capacity of the source or modification otherwise to emit a

pollutant, such as a restriction on hours of operation, then the requirements 

of Subparagraph 1200-03-09-.01(5)(b) shall apply to the source or

modification as though construction had not yet commenced on the source 

or modification. 

(x) Approval to construct shall not relieve any owner or operator of the

responsibility to comply fully with applicable provisions of the plan and any

other requirements under local, state or federal law. 

(xi) Approval to construct shall become invalid if construction is not

commenced within 18 months after issuance of an approved construction

permit, if construction is discontinued for a period of 18 months or more, or 

if construction is not completed within 18 months of the completion date 

specified on the construction permit application unless an extension has 

been granted from the Tennessee Air Pollution Control Board. Also, each

phase of a phased construction project must meet the requirements stated

above. An extension of time for a phased construction project may be 

requested for each phase or for the whole project. The above requirements 

do not apply to the time period between the construction of the approved

phases of a phased construction project. The Tennessee Air Pollution

Control Board may issue a variance granting an extension to complete

construction of a source provided adequate justification is presented. Each 

extension shall not exceed 12 months in time. 

(xii) Except as otherwise provided in sub-parts 2.(xviii) and 2.(xix) of this 

subparagraph, and consistent with the definition of major modification

contained in item 1.(v)(I) of this subparagraph, a project is a major 

modification for a regulated NSR pollutant if it causes two types of

emissions increases—a significant emissions increase (as defined in subpart 1.(xxxix) of this subparagraph), and a significant net emissions 

increase (as defined in sub-parts 1.(vi) and 1.(x) of this subparagraph). The

project is not a major modification if it does not cause a significant 

emissions increase. If the project causes a significant emissions increase,

August, 2009 (Revised) 79
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then the project is a major modification only if it also results in a significant 

net emissions increase. 

(xiii) The procedure for calculating (before beginning actual construction) 

whether a significant emissions increase (i.e., the first step of the process) 

will occur depends upon the type of emissions units being modified, 

according to sub-parts 2.(xiv) and 2.(xvii) of this subparagraph. The

procedure for calculating (before beginning actual construction) whether a 

significant net emissions increase will occur at the major stationary source 

(i.e., the second step of the process) is contained in the definition in subpart 1.(vi) of this subparagraph. Regardless of any such preconstruction

projections, a major modification results if the project causes a significant 

emissions increase and a significant net emissions increase. 

(xiv) Actual-to-projected-actual applicability test for projects that only involve

existing emissions units. A significant emissions increase of a regulated

NSR pollutant is projected to occur if the sum of the difference between the

projected actual emissions (as defined in sub-part 1.(xl) of this 

subparagraph) and the baseline actual emissions (as defined in items 

1.(xlvii)(I) and (II) of this subparagraph, as applicable), for each existing

emissions unit, equals or exceeds the significant amount for that pollutant

(as defined in sub-part 1.(x) of this subparagraph). 

(xv) Actual-to-potential test for projects that only involve construction of a new 

emissions unit(s). A significant emissions increase of a regulated NSR 

pollutant is projected to occur if the sum of the difference between the

potential to emit (as defined in sub-part 1.(iii) of this subparagraph) from

each new emissions unit following completion of the project and the 

baseline actual emissions (as defined in item 1.(xlvii)(III) of this 

subparagraph) of these units before the project equals or exceeds the

significant amount for that pollutant (as defined in sub-part 1.(x) of this 

subparagraph). 

(xvi) Reserved. 

(xvii) Hybrid test for projects that involve multiple types of emissions units. A

significant emissions increase of a regulated NSR pollutant is projected to

occur if the sum of the emissions increases for each emissions unit, using

the method specified in subparts 2.(xiv) through (xv) of this subparagraph 

as applicable with respect to each emissions unit, for each type of 

emissions unit equals or exceeds the significant amount for that pollutant 

(as defined in subpart 1.(x) of this subparagraph). For example, if a project

involves both an existing emissions unit and a new emissions unit, the 

projected increase is determined by summing the values determined using

the method specified in subpart 2.(xiv) of this subparagraph for the existing

unit and using the method specified in subpart 2.(xv) of this subparagraph 

for the new unit. 

(xviii) Any major stationary source with a PAL for a regulated NSR pollutant shall

comply with the requirements under part 10. of this subparagraph.

(xix) Reserved. 

3. Public Participation 

August, 2009 (Revised) 80
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(i) The Technical Secretary shall provide opportunity for public comment on

information submitted by owners and operators. The public information 

must include the agency’s analysis of the effect of construction or 

modification on ambient air quality, including the agency’s proposed

approval or disapproval. The opportunity for public comment shall include,

as a minimum - 

(I) Availability for public inspection in at least one location in the area

affected of the information submitted by the owner or operator and of 

the Technical Secretary’s analysis of the effect on air quality; 

(II) A 30-day period for submittal of public comment; and 

(III) A notice by prominent advertisement in the area affected of the 

location of the source information and analysis specified in Item (I) of 

the Sub-part. This notice shall be provided by the source owner or 

operator. 

(ii) Where the 30-day comment period required in Item II of Sub-part (i) would

conflict with existing requirements for acting on requests for permission to

construct or modify, the Technical Secretary may submit for approval a

comment period which is consistent with such existing requirements. 

(iii) The Technical Secretary shall provide a copy of the notice required by

Sub-part (i) of this part to the Administrator through the appropriate

Regional Office, and to all other State and local air pollution control 

agencies having jurisdiction in the region in which such new or modified 

installation will be located. The notice also must be sent to any other 

agency in the region having responsibility for implementing the procedures

required under this part. For lead, a copy of the notice is required for all

point sources. The definition of point source for lead is given in 40 CFR 

Part 51.100(k)(2). (July 1, 1993). 

4. Emissions banking for an air contaminant for which an area is designated 

nonattainment must be conducted in accordance with the EPA Part III, Emissions 

Trading Policy Statement..., Federal Register / Vol. 51, No. 233 / Thursday, 

December 4, 1986. 

5. The following specific provisions apply to projects at existing emissions units at a 

major stationary source (other than projects at a source with a PAL) in 

circumstances where there is a reasonable possibility that a project that is not a 

part of a major modification may result in a significant emissions increase and 

the owner or operator elects to use the method specified in subitems 1(xl)(I)I 

through III of this subparagraph for calculating projected actual emissions. 

6. The owner or operator of the source shall make the information required to be

documented and maintained pursuant to part 5. of this subparagraph available

for review upon a request for inspection by the Technical Secretary or the

general public pursuant to the requirements contained in sub-part 

.02(11)(e)1.(iii)of this chapter. 

7. Reserved. 

8. Reserved. 

August, 2009 (Revised) 81
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9. Reserved. 

10. Actuals PALs. 

(i) Applicability. 

(I) The Technical Secretary may approve the use of an actuals PAL for 

any existing major stationary source (except as provided in item

10.(i)(II) of this subparagraph) if the PAL meets the requirements in

sub-parts 10.(i) through (xv) of this subparagraph. The term “PAL” 

shall mean “actuals PAL” throughout part 10. of this subparagraph. 

(II) The Technical Secretary shall not allow an actuals PAL for VOC or

NOX for any major stationary source located in an extreme ozone 

nonattainment area. 

(III) Any physical change in or change in the method of operation of a 

major stationary source that maintains its total source-wide 

emissions below the PAL level, meets the requirements in sub-parts 

10.(i) through (xv) of this subparagraph, and complies with the PAL 

permit: 

I Is not a major modification for the PAL pollutant; 

II Does not have to be approved through the nonattainment 

major NSR program; and 

III Is not subject to the provisions in sub-part 2.(ix) of this 

subparagraph (restrictions on relaxing enforceable emission

limitations that the major stationary source used to avoid

applicability of the nonattainment major NSR program). 

(IV) Except as provided under sub-item 10.(i)(III)III of this subparagraph,

a major stationary source shall continue to comply with all applicable 

Federal or State requirements, emission limitations, and work 

practice requirements that were established prior to the effective 

date of the PAL. 

(ii) Definitions. When a term is not defined in these paragraphs, it shall have 

the meaning given in part 1. of this subparagraph or in the Federal Clean 

Air Act. 

(I) Actuals PAL for a major stationary source means a PAL based on 

the baseline actual emissions (as defined in sub-part 1.(xlvii) of this 

subparagraph) of all emissions units (as defined in sub-part 1.(vii) of 

this subparagraph) at the source, that emit or have the potential to

emit the PAL pollutant. 

(II) Allowable emissions means “allowable emissions” as defined in subpart 1.(xi) of this subparagraph, except as this definition is modified

according to sub-items 10.(ii)(II)I through II of this subparagraph. 

I The allowable emissions for any emissions unit shall be

calculated considering any emission limitations that are 

August, 2009 (Revised) 82
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enforceable as a practical matter on the emissions unit’s 

potential to emit. 

II An emissions unit’s potential to emit shall be determined using

the definition in sub-part 1.(iii) of this subparagraph, except

that the words “or enforceable as a practical matter” should be

added after “federally enforceable.” 

(III) Small emissions unit means an emissions unit that emits or has the

potential to emit the PAL pollutant in an amount less than the

significant level for that PAL pollutant, as defined in sub-part 1.(x) of 

this subparagraph or in the Federal Clean Air Act, whichever is 

lower. 

(IV) Major emissions unit means: 

I Any emissions unit that emits or has the potential to emit 100

tons per year or more of the PAL pollutant in an attainment 

area; or 

II Any emissions unit that emits or has the potential to emit the

PAL pollutant in an amount that is equal to or greater than the 

major source threshold for the PAL pollutant as defined by the

Federal Clean Air Act for nonattainment areas. 

(V) Plantwide applicability limitation (PAL) means an emission limitation 

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

source, that is enforceable as a practical matter and established

source-wide in accordance with sub-parts 10.(i) through (xv) of this

subparagraph. 

(VI) PAL effective date generally means the date of issuance of the PAL 

permit. However, the PAL effective date for an increased PAL is the 

date any emissions unit which is part of the PAL major modification

becomes operational and begins to emit the PAL pollutant. 

(VII) PAL effective period means the period beginning with the PAL

effective date and ending 10 years later. 

(VIII) PAL major modification means, notwithstanding sub-parts 1.(v) and 

1.(vi) of this subparagraph (the definitions for major modification and

net emissions increase), any physical change in or change in the 

method of operation of the PAL source that causes it to emit the PAL 

pollutant at a level equal to or greater than the PAL. 

(IX) PAL permit means the major NSR permit, the minor NSR permit, or 

the State operating permit under a program that is approved into the

plan, or the title V permit issued by the Technical Secretary that 

establishes a PAL for a major stationary source. 

(X) PAL pollutant means the pollutant for which a PAL is established at a 

major stationary source. 

(XI) Significant emissions unit means an emissions unit that emits or has 

the potential to emit a PAL pollutant in an amount that is equal to or 

August, 2009 (Revised) 83
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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greater than the significant level (as defined in sub-part 1.(x) of this

subparagraph or in the Federal Clean Air Act, whichever is lower) for 

that PAL pollutant, but less than the amount that would qualify the 

unit as a major emissions unit as defined in item 10.(ii)(IV) of this 

subparagraph. 

(iii) Permit application requirements. As part of a permit application requesting

a PAL, the owner or operator of a major stationary source shall submit the

following information to the Technical Secretary for approval: 

(I) 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. 

(II) Calculations of the baseline actual emissions (with supporting

documentation). Baseline actual emissions are to include emissions

associated not only with operation of the unit, but also emissions 

associated with startup, shutdown and malfunction. 

(III) The calculation procedures that the major stationary source owner or 

operator proposes to use to convert the monitoring system data to 

monthly emissions and annual emissions based on a 12-month 

rolling total for each month as required by item 10.(xiii)(I) of this 

subparagraph. 

(iv) General requirements for establishing PALs. 

(I) The Technical Secretary may establish a PAL at a major stationary 

source, provided that at a minimum, the requirements in sub-items 

10.(iv)(I)I through VII of this subparagraph are met. 

I The PAL shall impose an annual emission limitation in tons per 

year, that is enforceable as a practical matter, for the entire

major stationary source. For each month during the PAL 

effective period after the first 12 months of establishing a PAL, 

the major stationary 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 average, rolled monthly). For each 

month during the first 11 months from the PAL effective date, 

the major stationary source owner or operator 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. 

II The PAL shall be established in a PAL permit that meets the

public participation requirements in sub-part 10.(v) of this 

subparagraph. 

III The PAL permit shall contain all the requirements of sub-part 

10.(vii) of this subparagraph. 

August, 2009 (Revised) 84
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IV The PAL shall include fugitive emissions, to the extent 

quantifiable, from all emissions units that emit or have the

potential to emit the PAL pollutant at the major stationary

source. 

V Each PAL shall regulate emissions of only one pollutant. 

VI Each PAL shall have a PAL effective period of 10 years. 

VII The owner or operator of the major stationary source with a

PAL shall comply with the monitoring, recordkeeping, and 

reporting requirements provided in sub-parts 10.(xii) through

(xiv) of this subparagraph for each emissions unit under the

PAL through the PAL effective period. 

(II) At no time (during or after the PAL effective period) are emissions 

reductions of a PAL pollutant, which occur during the PAL effective 

period, creditable as decreases for purposes of offsets under subpart 2.(v) of this subparagraph unless the level of the PAL is reduced

by the amount of such emissions reductions and such reductions

would be creditable in the absence of the PAL. 

(v) Public participation requirement for PALs. PALs for existing major 

stationary sources shall be established, renewed, or increased through a

procedure that is consistent with 40 CFR 51.160 and 51.161, part 3. of this 

subparagraph, subparagraph (4)(l) of this rule, or 1200-03-09-.02(11)(f)8. 

This includes the requirement that the Technical Secretary provide the 

public with notice of the proposed approval of a PAL permit and at least a 

30-day period for submittal of public comment. The Technical Secretary

must address all material comments before taking final action on the 

permit. 

(vi) Setting the 10-year actuals PAL level. 

(I) Except as provided in item 10.(vi)(II) of this subparagraph, the

actuals PAL level for a major stationary source shall be established

as the sum of the baseline actual emissions (as defined in sub-part 

1.(xlvii) of this subparagraph) of the PAL pollutant for each emissions 

unit at the source; plus an amount equal to the applicable significant 

level for the PAL pollutant under sub-part 1.(x) of this subparagraph

or under the Federal Clean Air Act, whichever is lower. When

establishing the actuals PAL level, for a PAL pollutant, only one

consecutive 24-month period must be used to determine the

baseline actual emissions for all existing emissions units. Emissions 

associated with units that were permanently shut down after this 24-

month period must be subtracted from the PAL level. The Technical 

Secretary shall specify 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

Technical Secretary is aware of prior to issuance of the PAL permit. 

For instance, if the source owner or operator will be required to 

reduce emissions from industrial boilers in half from baseline

emissions of 60 ppm NOX to a new rule limit of 30 ppm, then the

permit shall contain a future effective PAL level that is equal to the

August, 2009 (Revised) 85
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current PAL level reduced by half of the original baseline emissions

of such unit(s). 

(II) For newly constructed units (which do not include modifications to

existing units) on which actual construction began after the 24-month 

period, in lieu of adding the baseline actual emissions as specified in

item 10.(vi)(I) of this subparagraph, the emissions must be added to

the PAL level in an amount equal to the potential to emit of the units. 

(vii) Contents of the PAL permit. 

(I) The PAL pollutant and the applicable source-wide emission limitation 

in tons per year. 

(II) The PAL permit effective date and the expiration date of the PAL 

(PAL effective period). 

(III) Specification in the PAL permit that if a major stationary source 

owner or operator applies to renew a PAL in accordance with subpart 10.(x) of this subparagraph before the end of the PAL effective

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

period. It shall remain in effect until a revised PAL permit is issued by

the Technical Secretary. 

(IV) A requirement that emission calculations for compliance purposes 

include emissions from startups, shutdowns and malfunctions. 

(V) A requirement that, once the PAL expires, the major stationary

source is subject to the requirements of sub-part 10.(ix) of this 

subparagraph. 

(VI) The calculation procedures that the major stationary source owner or 

operator shall use to convert the monitoring system data to monthly 

emissions and annual emissions based on a 12-month rolling total

for each month as required by item 10.(xiii)(I) of this subparagraph. 

(VII) A requirement that the major stationary source owner or operator 

monitor all emissions units in accordance with the provisions under 

sub-part 10.(xii) of this subparagraph. 

(VIII) A requirement to retain the records required under sub-part 10.(xiii) 

of this subparagraph on site. Such records may be retained in an

electronic format. 

(IX) A requirement to submit the reports required under sub-part 10.(xiv) 

of this subparagraph by the required deadlines. 

(X) Any other requirements that the Technical Secretary deems 

necessary to implement and enforce the PAL. 

(viii) PAL effective period and reopening of the PAL permit. 

(I) PAL effective period. The Technical Secretary shall specify a PAL 

effective period of 10 years. 

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(II) Reopening of the PAL permit. 

I During the PAL effective period, the Technical Secretary shall

reopen the PAL permit to: 

A Correct typographical/calculation errors made in setting

the PAL or reflect a more accurate determination of 

emissions used to establish the PAL. 

B Reduce the PAL if the owner or operator of the major 

stationary source creates creditable emissions 

reductions for use as offsets under sub-part 2.(v) of this 

subparagraph. 

C Revise the PAL to reflect an increase in the PAL as

provided under sub-part 10.(xi) of this subparagraph. 

II The Technical Secretary may reopen the PAL permit for the 

following: 

A Reduce the PAL to reflect newly applicable Federal

requirements (for example, NSPS) with compliance 

dates after the PAL effective date. 

B Reduce the PAL consistent with any other requirement, 

that is enforceable as a practical matter, and that the 

State may impose on the major stationary source under 

the plan. 

C Reduce the PAL if the Technical Secretary determines 

that a reduction is necessary to avoid causing or 

contributing to a NAAQS or PSD increment violation, or 

to an adverse impact on an air quality related value that 

has been identified for a Federal Class I area by a 

Federal Land Manager and for which information is 

available to the general public. 

III Except for the permit reopening in section 10.(viii)(II)IA of this

subparagraph for the correction of typographical/calculation

errors that do not increase the PAL level, all other reopenings 

shall be carried out in accordance with the public participation 

requirements of sub-part 10.(v) of this subparagraph. 

(ix) Expiration of a PAL. Any PAL which is not renewed in accordance with the

procedures in sub-part 10.(x) of this subparagraph shall expire at the end

of the PAL effective period, and the requirements in items 10.(ix)(I) through

(V) of this subparagraph shall apply. 

(I) Each emissions unit (or each group of emissions units) that existed

under the PAL shall comply with an allowable emission limitation

under a revised permit established according to the procedures in

sub-items 10.(ix)(I)I through II of this subparagraph. 

I Within the time frame specified for PAL renewals in item

10.(x)(II) of this subparagraph, the major stationary source

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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shall submit a proposed allowable emission limitation for each

emissions unit (or each group of emissions units, if such a

distribution is more appropriate as decided by the Technical 

Secretary) by distributing the PAL allowable emissions for the 

major stationary source among each of the emissions units

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

adjusted for an applicable requirement that became effective

during the PAL effective period, as required under item

10.(x)(V) of this subparagraph, such distribution shall be made 

as if the PAL had been adjusted. 

II The Technical Secretary shall decide whether and how the

PAL allowable emissions will be distributed and issue a 

revised permit incorporating allowable limits for each

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

Technical Secretary determines is appropriate. 

(II) Each emissions unit(s) shall comply with the allowable emission

limitation on a 12-month rolling basis. The Technical Secretary 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. 

(III) Until the Technical Secretary issues the revised permit incorporating 

allowable limits for each emissions unit, or each group of emissions 

units, as required under sub-item 10.(ix)(I)I of this subparagraph, the

source shall continue to comply with a source-wide, multi-unit

emissions cap equivalent to the level of the PAL emission limitation. 

(IV) Any physical change or change in the method of operation at the

major stationary source will be subject to the nonattainment major 

NSR requirements if such change meets the definition of major 

modification in sub-part 1.(v) of this subparagraph. 

(V) The major stationary source owner or operator shall continue to

comply with any State or Federal applicable requirements (BACT, 

RACT, NSPS, etc.) that may have applied either during the PAL 

effective period or prior to the PAL effective period except for those

emission limitations that had been established pursuant to sub-part 

2.(ix) of this subparagraph, but were eliminated by the PAL in

accordance with the provisions in sub-item 10.(i)(III)III of this

subparagraph. 

(x) Renewal of a PAL. 

(I) The Technical Secretary shall follow the procedures specified in subpart 10.(v) of this subparagraph in approving any request to renew a 

PAL for a major stationary source, and shall provide both the

proposed PAL level and a written rationale for the proposed PAL

level to the public for review and comment. During such public 

review, any person may propose a PAL level for the source for 

consideration by the Technical Secretary. 

(II) Application deadline. A major stationary source owner or operator

shall submit a timely application to the Technical Secretary to 

August, 2009 (Revised) 88
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request renewal of a PAL. A timely application is one that is 

submitted at least 6 months prior to, but not earlier than 18 months

from, the date of permit expiration. This deadline for application

submittal is to ensure that the permit will not expire before the permit 

is renewed. If the owner or operator of a major stationary source

submits a complete application to renew the PAL within this time

period, then the PAL shall continue to be effective until the revised 

permit with the renewed PAL is issued. 

(III) Application requirements. The application to renew a PAL permit

shall contain the information required in sub-items 10.(x)(III)I through 

IV of this subparagraph. 

I The information required in items 10.(iii)(I) through (III) of this

subparagraph. 

II A proposed PAL level. 

III The sum of the potential to emit of all emissions units under 

the PAL (with supporting documentation). 

IV Any other information the owner or operator wishes the 

Technical Secretary to consider in determining the appropriate 

level for renewing the PAL. 

(IV) PAL adjustment. In determining whether and how to adjust the PAL, 

the Technical Secretary shall consider the options outlined in subitems 10.(x)(IV)I and II of this subparagraph. However, in no case 

may any such adjustment fail to comply with sub-item 10.(x)(IV)III of

this subparagraph. 

I If the emissions level calculated in accordance with sub-part

10.(vi) of this subparagraph is equal to or greater than 80

percent of the PAL level, the Technical Secretary may renew 

the PAL at the same level without considering the factors set 

forth in sub-item 10.(x)(IV)II of this subparagraph; or 

II The Technical Secretary may set the PAL at a level that it 

determines to be more representative of the source’s baseline

actual emissions, or that it determines to be appropriate

considering air quality needs, advances in control technology,

anticipated economic growth in the area, desire to reward or

encourage the source’s voluntary emissions reductions, or

other factors as specifically identified by the Technical

Secretary in its written rationale. 

III Notwithstanding sub-items 10.(x)(IV)I and II of this

subparagraph, 

A If the potential to emit of the major stationary source is 

less than the PAL, the Technical Secretary shall adjust

the PAL to a level no greater than the potential to emit of

the source; and 

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B The Technical Secretary shall not approve a renewed

PAL level higher than the current PAL, unless the major 

stationary source has complied with the provisions of 

sub-part 10.(xi) of this subparagraph (increasing a PAL). 

(V) If the compliance date for a State or Federal requirement that applies 

to the PAL source occurs during the PAL effective period, and if the

Technical Secretary has not already adjusted for such requirement, 

the PAL shall be adjusted at the time of PAL permit renewal or title V 

permit renewal, whichever occurs first. 

(xi) Increasing a PAL during the PAL effective period. 

(I) The Technical Secretary may increase a PAL emission limitation

only if the major stationary source complies with the provisions in 

sub-items 10.(xi)(I)I through IV of this subparagraph. 

I The owner or operator of the major stationary source shall

submit a complete application to request an increase in the

PAL limit for a PAL major modification. Such application shall

identify the emissions unit(s) contributing to the increase in

emissions so as to cause the major stationary source’s

emissions to equal or exceed its PAL. 

II As part of this application, the major stationary source owner 

or operator shall demonstrate that the sum of the baseline

actual emissions of the small emissions units, plus the sum of

the baseline actual emissions of the significant and major 

emissions units assuming application of BACT equivalent

controls, plus the sum of the allowable emissions of the new or

modified emissions unit(s) exceeds the PAL. The level of 

control that would result from BACT equivalent controls on

each significant or major emissions unit shall be determined by 

conducting a new BACT analysis at the time the application is

submitted, unless the emissions unit is currently required to

comply with a BACT or LAER requirement that was 

established within the preceding 10 years. In such a case, the 

assumed control level for that emissions unit shall be equal to

the level of BACT or LAER with which that emissions unit must 

currently comply.

III The owner or operator obtains a major NSR permit for all 

emissions unit(s) identified in sub-item 10.(xi)(I)I of this 

subparagraph, regardless of the magnitude of the emissions 

increase resulting from them (that is, no significant levels 

apply). These emissions unit(s) shall comply with any 

emissions requirements resulting from the nonattainment 

major NSR program process (for example, LAER), even

though they have also become subject to the PAL or continue

to be subject to the PAL. 

IV The PAL permit shall require that the increased PAL level shall

be effective on the day any emissions unit that is part of the

PAL major modification becomes operational and begins to 

emit the PAL pollutant. 

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(II) The Technical Secretary shall calculate the new PAL as the sum of 

the allowable emissions for each modified or new emissions unit, 

plus the sum of the baseline actual emissions of the significant and

major emissions units (assuming application of BACT equivalent 

controls as determined in accordance with sub-item 10.(xi)(I)I), plus

the sum of the baseline actual emissions of the small emissions 

units. 

(III) The PAL permit shall be revised to reflect the increased PAL level

pursuant to the public notice requirements of sub-part 10.(v) of this 

subparagraph. 

(xii) Monitoring requirements for PALs 

(I) General requirements. 

I Each PAL permit must contain enforceable requirements for 

the monitoring system that accurately determines plantwide

emissions of the PAL pollutant in terms of mass per unit of

time. Any monitoring system authorized for use in the PAL

permit must be based on sound science and meet generally 

acceptable scientific procedures for data quality and 

manipulation. Additionally, the information generated by such

system must meet minimum legal requirements for 

admissibility in a judicial proceeding to enforce the PAL permit. 

II The PAL monitoring system must employ one or more of the

four general monitoring approaches meeting the minimum

requirements set forth in sub-items 10.(xii)(II)I through IV of 

this subparagraph and must be approved by the Technical

Secretary. 

III Notwithstanding sub-item 10.(xii)(I)II of this subparagraph, you

may also employ an alternative monitoring approach that

meets sub-item 10.(xii)(I)I of this subparagraph if approved by

the Technical Secretary. 

IV Failure to use a monitoring system that meets the

requirements of this section renders the PAL invalid. 

(II) Minimum Performance Requirements for Approved Monitoring 

Approaches. The following are acceptable general monitoring

approaches when conducted in accordance with the minimum

requirements in items 10.(xii)(III) through (IX) of this subparagraph: 

I Mass balance calculations for activities using coatings or 

solvents; 

II CEMS; 

III CPMS or PEMS; and 

IV Emission Factors. 

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(III) Mass Balance Calculations. An owner or operator using mass

balance calculations to monitor PAL pollutant emissions from

activities using coating or solvents shall meet the following

requirements: 

I Provide a demonstrated means of validating the published

content of the PAL pollutant that is contained in or created by 

all materials used in or at the emissions unit; 

II Assume that the emissions unit emits all of the PAL pollutant 

that is contained in or created by any raw material or fuel used

in or at the emissions unit, if it cannot otherwise be accounted

for in the process; and 

III Where the vendor of a material or fuel, which is used in or at 

the emissions unit, publishes a range of pollutant content from

such material, the owner or operator must use the highest

value of the range to calculate the PAL pollutant emissions 

unless the Technical Secretary determines there is sitespecific data or a site-specific monitoring program to support

another content within the range. 

(IV) CEMS. An owner or operator using CEMS to monitor PAL pollutant 

emissions shall meet the following requirements: 

I CEMS must comply with applicable Performance 

Specifications found in 40 CFR part 60, appendix B; and 

II CEMS must sample, analyze and record data at least every 15 

minutes while the emissions unit is operating. 

(V) CPMS or PEMS. An owner or operator using CPMS or PEMS to 

monitor PAL pollutant emissions shall meet the following

requirements: 

I The CPMS or the PEMS must be based on current sitespecific data demonstrating a correlation between the

monitored parameter(s) and the PAL pollutant emissions 

across the range of operation of the emissions unit; and 

II Each CPMS or PEMS must sample, analyze, and record data

at least every 15 minutes, or at another less frequent interval

approved by the Technical Secretary, while the emissions unit

is operating. 

(VI) Emission factors. An owner or operator using emission factors to 

monitor PAL pollutant emissions shall meet the following

requirements: 

I All emission factors shall be adjusted, if appropriate, to 

account for the degree of uncertainty or limitations in the

factors’ development; 

II The emissions unit shall operate within the designated range

of use for the emission factor, if applicable; and 

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III If technically practicable, the owner or operator of a significant 

emissions unit that relies on an emission factor to calculate

PAL pollutant emissions shall conduct validation testing to 

determine a site-specific emission factor within 6 months of

PAL permit issuance, unless the Technical Secretary 

determines that testing is not required. 

(VII) A source owner or operator must record and report maximum 

potential emissions without considering enforceable emission 

limitations or operational restrictions for an emissions unit during any 

period of time that there is no monitoring data, unless another 

method for determining emissions during such periods is specified in

the PAL permit. 

(VIII) Notwithstanding the requirements in items 10.(xii)(III) through (VII) of 

this subparagraph, where an owner or operator of an emissions unit 

cannot demonstrate a correlation between the monitored

parameter(s) and the PAL pollutant emissions rate at all operating

points of the emissions unit, the Technical Secretary shall, at the 

time of permit issuance: 

I Establish default value(s) for determining compliance with the

PAL based on the highest potential emissions reasonably 

estimated at such operating point(s); or 

II Determine that operation of the emissions unit during

operating conditions when there is no correlation between

monitored parameter(s) and the PAL pollutant emissions is a

violation of the PAL. 

(IX) Re-validation. All data used to establish the PAL pollutant must be

re-validated through performance testing or other scientifically valid 

means approved by the Technical Secretary. Such testing must

occur at least once every 5 years after issuance of the PAL. 

(xiii) Recordkeeping requirements. 

(I) The PAL permit shall require an owner or operator to retain a copy of 

all records necessary to determine compliance with any requirement

of part 10. of this subparagraph and of the PAL, including a 

determination of each emissions unit’s 12-month rolling total 

emissions, for 5 years from the date of such record. 

(II) The PAL permit shall require an owner or operator to retain a copy of 

the following records for the duration of the PAL effective period plus

5 years: 

I A copy of the PAL permit application and any applications for 

revisions to the PAL; and 

II Each annual certification of compliance pursuant to title V and

the data relied on in certifying the compliance. 

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(xiv) Reporting and notification requirements. The owner or operator shall

submit semi-annual monitoring reports and prompt deviation reports to the 

Technical Secretary in accordance with the applicable title V operating

permit program. The reports shall meet the requirements in items 

10.(xiv)(I) through (III). 

(I) Semi-Annual Report. The semi-annual report shall be submitted to

the Technical Secretary within 30 days of the end of each reporting

period. This report shall contain the information required in sub-items 

10.(xiv)(I)I through VII of this subparagraph. 

I The identification of owner and operator and the permit

number. 

II Total annual emissions (tons/year) based on a 12-month 

rolling total for each month in the reporting period recorded 

pursuant to item 10.(xiii)(I) of this subparagraph. 

III 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. 

IV A list of any emissions units modified or added to the major 

stationary source during the preceding 6-month period. 

V The number, duration, and cause of any deviations or

monitoring malfunctions (other than the time associated with

zero and span calibration checks), and any corrective action

taken. 

VI A notification of a shutdown of any monitoring system, whether 

the shutdown was permanent or temporary, the reason for the 

shutdown, the anticipated date that the monitoring system will

be fully operational or replaced with another monitoring

system, and whether the emissions unit monitored by the

monitoring system continued to operate, and the calculation of 

the emissions of the pollutant or the number determined by

method included in the permit, as provided by item 10.(xii)(VII) 

of this subparagraph. 

VII A signed statement by the responsible official (as defined by 

the applicable title V operating permit program) certifying the

truth, accuracy, and completeness of the information provided

in the report. 

(II) Deviation report. The major stationary source owner or operator shall

promptly submit reports of any deviations or exceedance of the PAL

requirements, including periods where no monitoring is available. A 

report submitted pursuant to item .02(11)(e)1.(iii)(III) of this chapter 

shall satisfy this reporting requirement. The deviation reports shall be

submitted within the time limits prescribed by item .02(11)(e)1.(iii)(III)

of this chapter. The reports shall contain the following information: 

I The identification of owner and operator and the permit

number; 

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II The PAL requirement that experienced the deviation or that

was exceeded; 

III Emissions resulting from the deviation or the exceedance; and 

IV A signed statement by the responsible official (as defined by 

the applicable title V operating permit program) certifying the

truth, accuracy, and completeness of the information provided

in the report. 

(III) Re-validation results. The owner or operator shall submit to the 

Technical Secretary the results of any re-validation test or method 

within 3 months after completion of such test or method. 

(xv) Transition requirements. 

(I) The Technical Secretary may not issue a PAL that does not comply 

with the requirements in sub-parts 10.(i) through (xv) of this 

subparagraph after the Administrator has approved regulations 

incorporating these requirements into the SIP. 

(II) The Technical Secretary may supersede any PAL which was 

established prior to the date of approval of the plan by the 

Administrator with a PAL that complies with the requirements of subparts 10.(i) through (xv) of this subparagraph. 

11. If any provision of this section, or the application of such provision to any person

or circumstance, is held invalid, the remainder of this section, or the application 

of such provision to persons or circumstances other than those as to which it is

held invalid, shall not be affected thereby. 

12. The requirements of this subparagraph applicable to major stationary sources 

and major modifications of PM10 shall also apply to major stationary sources and 

major modifications of PM10 precursors, except where the Administrator of the 

U.S. EPA determines that such sources do not contribute significantly to PM10

levels that exceed the PM10 ambient standards in the area. 

(6) Construction permits issued under this rule are based on the control of air contaminants only 

and do not in any way affect the applicant’s obligation to obtain necessary permits from other

governmental agencies. 

(7) The applicant for a construction permit (or its equivalent by Board order) shall pay the cost of

publication of any notices required by state or federal law or regulations to effectuate the

rights applied for. 

(8) Visibility Protection 

(a) Definitions - Unless specifically defined in this part, all terms shall have the meaning

given them in Chapter 1200-03-02, paragraph 1200-03-09-.01(4) and Chapter 

1200-03-23. 

1. “Visibility protection area” means any of the mandatory Federal Class I areas 

listed below. These areas are those mandatory Federal Class I areas where

visibility values may be impacted by sources in Tennessee: 

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(i) Great Smoky Mountains National Park(NP), TN-NC. 

(ii) Joyce Kilmer-Slickrock National Wilderness Area(NWA), TN-NC. 

(iii) Cohutta National Wilderness Area, TN-GA. 

(iv) Linville Gorge National Wilderness Area, NC. 

(v) Shining Rock National Wilderness Area, NC. 

(vi) Sipsey National Wilderness Area, AL. 

(vii) Mammoth Cave National Park, KY. 

(viii) Mingo National Wilderness Area, MO. 

2. (Reserved)

3. Class II areas in Tennessee are those areas not already designated as

mandatory Federal Class I areas. This corresponds to all areas of the State

which are not part of Cohutta NWA or Great Smoky Mountains N.P., or Joyce 

Kilmer-Slickrock National Wilderness Area(NWA). 

(b) Review of major stationary sources and major modifications - source applicability and 

exemptions. 

1. No stationary source or modification to which the requirements of this part apply

shall begin actual construction without a permit which states that the stationary

source or modification would meet the applicable requirements. 

2. The requirements of this part shall apply to construction of any new major 

stationary source or major modification that would be constructed in an area

classified as nonattainment and potentially have an impact on visibility in any 

visibility protection area. 

3. The requirements of this part shall apply to any major stationary source and any 

major modification with respect to each air contaminant that it would emit, except

as this part otherwise provides. 

4. The requirements of this part shall not apply to a particular major stationary 

source or major modification, if: 

(i) The source or modification would be a nonprofit health or nonprofit

educational institution, or a major modification would occur at such an

institution, and the governor of the State in which the source or

modification would be located requests that it be exempt from those

requirements; or 

(ii) The source or modification that would be a major stationary source or 

major modification only if fugitive emissions, to the extent quantifiable, are

considered in calculating the potential to emit of the stationary source or

modification and the source does not belong to any of the following

categories: 

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(I) Coal cleaning plants (with thermal dryers); 

(II) Kraft pulp mills; 

(III) Portland cement plants; 

(IV) Primary zinc smelters; 

(V) Iron and steel mills; 

(VI) Primary aluminum ore reduction plants; 

(VII) Primary copper smelters; 

(VIII) Municipal incinerators capable of charging more than 250 tons of 

refuse per day;

(IX) Hydrofluoric, sulfuric, or nitric acid plants; 

(X) Petroleum refineries; 

(XI) Lime plants; 

(XII) Phosphate rock processing plants; 

(XIII) Coke oven batteries; 

(XIV) Sulfur recovery plants; 

(XV) Carbon black plants (furnace process); 

(XVI) Primary lead smelters; 

(XVII) Fuel conversion plants; 

(XVIII) Sintering plants; 

(XIX) Secondary metal production plants; 

(XX) Chemical process plants; 

(XXI) Fossil-fuel boilers (or combination thereof) totaling more than 250

million British thermal units per hour heat input; 

(XXII) Petroleum storage and transfer units with a total storage capacity 

exceeding 300,000 barrels;

(XXIII) Taconite ore processing plants;

(XXIV) Glass fiber processing plants; 

(XXV) Charcoal production plants;

(XXVI) Fossil fuel-fired steam electric plants of more than 250 million 

British thermal units per hour hear input; 

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

(XXVII) Any other stationary source category which, as of August 7, 1980, 

is being regulated under Chapter 1200-03-16, New Source

Performance Standards, or Chapter 1200-03-11, Hazardous Air 

Contaminants. or Chapter 1200-03-31, Standards For Hazardous 

Air Contaminants For Source Categories, or 40 CFR Part 60 and 

61 (July 1, 1993). 

(iii) The source is a portable stationary source which has previously received a

permit under this part; and

(I) The owner or operator proposes to relocate the source and 

emissions of the source at the new location would be temporary (a 

two year period); and 

(II) The emissions from the source would not exceed its allowable

emissions; and 

(III) The emissions from the source would impact no visibility protection 

area and no area where an applicable increment is known to be

violated; and

(IV) Reasonable notice is given to the Technical Secretary prior to the

relocation identifying the proposed new location and the probable

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

to the Technical Secretary not less than 10 days in advance of the 

proposed relocation unless a different time duration is previously

approved by the Technical Secretary. 

5. The requirements of this part shall not apply to a major stationary source or 

major modification with respect to a particular pollutant if the owner or operator

demonstrates that, as to that pollutant, the source or modification is located in an

area designated as attainment. 

6. The requirements of this part shall not apply to a major stationary source or 

major modification with respect to a particular pollutant, if the allowable

emissions of that pollutant from the source, or the net emissions increase of that

pollutant from the modification: 

(i) Would impact no visibility protection area and no area where an applicable 

increment is known to be violated, and

(ii) Would be temporary. 

(c) Visibility impact analyses. 

The owner or operator of a source shall provide an analysis of the impairment to 

visibility that would occur as a result of the source or modification and general 

commercial, residential, industrial and other growth associated with the source or 

modification. 

(d) Federal land manager notification. 

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CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

1. The Federal Land Manager (FLM) and the Federal official charged with direct 

responsibility for management of Federal Class I areas have an affirmative 

responsibility to protect the air quality related values (including visibility) of such

lands and to consider, in consultation with the Technical Secretary whether a

proposed source or modification will have an adverse impact on such values. 

2. The Technical Secretary shall provide written notification to all affected Federal 

Land Managers of any permit application for any proposed new major stationary

source or major modification that may affect visibility in any visibility protection 

area. The Technical Secretary shall also provide such notification to the Federal

official charged with direct responsibility for management of any lands within any 

such area. Such notification shall include a copy of all information relevant to the

permit application and shall be given within 30 days of receipt and at least 60

days prior to any public hearing on the application for a permit to construct. Such

notification shall include an analysis of the proposed source’s anticipated impacts 

on visibility in any visibility protection area. The Technical Secretary shall also 

notify all affected FLM’s within 30 days of receipt of any advance notification of

any such permit application. 

3. The Technical Secretary shall consider any analysis performed by the Federal 

Land Manager provided within 30 days of the notification and analysis required 

by part 2. of this subparagraph, that such proposed new major stationary source

or major modification may have an adverse impact on visibility in any visibility 

protection area. Where the Technical Secretary finds that such an analysis does 

not demonstrate to the satisfaction of the Technical Secretary that an adverse

impact on visibility will result in the visibility protection area, the Technical 

Secretary must, in the notice of public hearing, either explain his decision or give

notice as to where the explanation can be obtained. 

(e) National visibility goal. 

The Technical Secretary shall only issue permits to those sources whose emissions will

be consistent with making reasonable further progress toward the national goal of 

preventing any future, and remedying any existing, impairment of visibility in visibility

protection areas in which impairment results from man-made air pollution. In making

the decision to issue a permit the Technical Secretary may take into account the costs 

of compliance, the time necessary for compliance, the energy and non-air quality 

environmental impacts of compliance, and the useful life of the source. 

(f) Monitoring. 

The Technical Secretary may require monitoring of visibility in any visibility protection 

area near the proposed new stationary source or major modification for such purposes 

and by such means as the Technical Secretary deems necessary and appropriate. 

Authority: T.C.A. §§4-5-202 et seq. and 68-201-105. Administrative History: Original rule certified 

June 4, 1974. Amendment filed and effective February 9, 1977. Amendment filed and effective April 12,

1978. Amendment filed and effective June 16, 1978. Amendment filed and effective March 21, 1979. 

Amendment filed and effective June 21, 1979. Amendment filed and effective November 16, 1979. 

Emergency rule effective June 3, 1981 through October 1, 1981. Revised effective July 31, 1981.

Amendment filed and effective October 2, 1981. Amendment filed and effective January 22, 1982.

Amendment filed and effective March 2, 1983. Amendment filed and effective August 22, 1983. 

Amendment filed and effective November 6, 1988. Amendment filed April 19, 1990; effective June 2,

1990. Amendment filed May 17, 1990; effective July 1, 1990. Amendment filed May 12, 1993; effective

June 26, 1993. Amendment filed September 7, 1993; effective November 21, 1993. Amendment filed

August, 2009 (Revised) 99