Ariz. Admin. Code § R18-2-412 - PALs
A. Applicability.
1. The Director may approve the use of a PAL
for any existing major source if the PAL meets the requirements of this
Section.
2. 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 of this Section, and complies with the PAL permit:
a. Is not a major modification for the PAL
pollutant,
3. Except as provided under
subsection (A)(2)(c), 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.
B. Permit
application requirements. As part of a permit application requesting a PAL, the
owner or operator of a major source shall submit the following information to
the Director for approval:
1. A list of all
emissions units at the source designated as small, significant or major based
on their potential to emit. In addition, the owner or operator of the source
shall indicate which, if any, federal or state applicable requirements,
emission limitations, or work practices apply to each unit.
2. Calculations of the baseline actual
emissions (with supporting documentation). Baseline actual emissions shall
include emissions associated not only with operation of the unit, but also
emissions associated with the startup, shutdown and malfunction.
3. The calculation procedures that the major
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 subsection (L)(1).
C. General requirements for establishing
PALs.
1. The Director is allowed to establish
a PAL at a major source, provided that at a minimum, the following requirements
are met:
a. The PAL shall impose an annual
emission limitation in tons per year, that is enforceable as a practical
matter, for the entire major source. For each month during the PAL effective
period after the first 12 months of establishing a PAL, the major source owner
or operator shall show that the sum of the monthly emissions from each
emissions unit under the PAL for the previous 12 consecutive months is less
than the PAL (a 12-month sum, rolled monthly). For each month during the first
11 months from the PAL effective date, the major source owner or 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.
b. The PAL shall be established in a PAL
permit that meets the requirements in subsection (D).
c. The PAL permit shall contain all the
requirements of subsection (F).
d.
The PAL shall include fugitive emissions, to the extent quantifiable, from all
emissions units that emit or have the potential to emit the PAL pollutant at
the major source.
e. Each PAL shall
regulate emissions of only one pollutant.
f. Each PAL shall have a PAL effective period
of 10 years.
g. The owner or
operator of the major source with a PAL shall comply with the monitoring,
recordkeeping, and reporting requirements provided in subsections (K) through
(M) for each emissions unit under the PAL through the PAL effective
period.
2. At no time
(during or after the PAL effective period) are emissions reductions of a PAL
pollutant that occur during the PAL effective period creditable as decreases
for purposes of offsets under
R18-2-404 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.
D. Action on PAL permit application. A PAL
permit application shall be processed in accordance with one of the following:
1. As an initial Class I permit pursuant to
R18-2-304.
2. As a renewal of a Class I permit pursuant
to R18-2-322.
3. As a significant revision to a Class I
permit pursuant to
R18-2-320.
E. Setting the 10-year actuals PAL level.
1. Except as provided in subsection (E)(2),
the PAL level for a major source shall be established as the sum of the
baseline actual emissions of the PAL pollutant for each emissions unit at the
source; plus an amount equal to the applicable significant level for the PAL
pollutant. When establishing the PAL level, only one consecutive 24-month
period must be used to determine the baseline actual emissions for all existing
emissions units. However, a different consecutive 24-month period may be used
for each different PAL pollutant. Emissions associated with units that were
permanently shut down after this 24-month period must be subtracted from the
PAL level. The Director 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 Director 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).
2. 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 subsection (E)(1), the emissions
must be added to the PAL level in an amount equal to the potential to emit of
the units.
F. Contents
of the PAL permit. The PAL permit must contain, at a minimum, the following
information:
1. The PAL pollutant and the
applicable source-wide emission limitation in tons per year.
2. The PAL permit effective date and the
expiration date of the PAL (PAL effective period).
3. Specification in the PAL permit that if a
major source owner or operator applies to renew a PAL in accordance with
subsection (I) before the end of the PAL effective period, then the PAL shall
not expire at the end of the PAL effective period. It shall remain in effect
until a revised PAL permit is issued by the Director.
4. A requirement that emission calculations
for compliance purposes must include emissions from startups, shutdowns, and
malfunctions.
5. A requirement
that, once the PAL expires, the major source is subject to the requirements of
subsection (H).
6. The calculation
procedures that the major source owner or operator shall use to convert the
monitoring system data to monthly emissions and annual emissions based on a
12-month rolling total as required by subsection (L)(1).
7. A requirement that the major source owner
or operator monitor all emissions units in accordance with the provisions under
subsection (K).
8. A requirement to
retain the records required under subsection (L) onsite. Such records may be
retained in an electronic format.
9. A requirement to submit the reports
required under subsection (M) by the required deadlines.
10. Any other requirements that the Director
deems necessary to implement and enforce the PAL.
G. PAL effective period and reopening of the PAL
permit.
1. PAL effective period. The Director
shall specify a PAL effective period of 10 years.
2. Reopening of the PAL permit.
a. During the PAL effective period, the
Director must reopen the PAL permit to:
i.
Correct typographical/calculation errors made in setting the PAL or reflect a
more accurate determination of emissions used to establish the PAL,
ii. Reduce the PAL if the owner or operator
of the major source creates creditable emissions reductions for use as offsets
under R18-2-404, and
iii. Revise the PAL to reflect an increase in
the PAL as provided under subsection (J).
b. The Director shall have discretion to
reopen the PAL permit for the following:
i.
Reduce the PAL to reflect new federal applicable requirements with compliance
dates after the PAL effective date;
ii. Reduce the PAL consistent with any other
requirement, that is enforceable as a practical matter, and that the state may
impose on the major source under the State Implementation Plan; and
iii. Reduce the PAL if the Director
determines that a reduction is necessary to avoid causing or contributing to a
violation of a national ambient air quality standard or a maximum increase
allowed under
R18-2-208, 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.
c.
Except for the permit reopening in subsection (G)(2)(a)(i) 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 subsection (D).
H. Expiration of a PAL. Any PAL that is not
renewed in accordance with the procedures in subsection (I) shall expire at the
end of the PAL effective period, and the following requirements shall apply.
1. 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
following procedures.
a. Within the time-frame
specified for PAL renewals in subsection (I)(2), the major source shall submit
a proposed allowable emission limitation for each emissions unit (or each group
of emissions units, if such a distribution is more appropriate) by distributing
the PAL allowable emissions for the major source among each of the emissions
units that existed under the PAL. If the PAL had not yet been adjusted for an
applicable requirement that became effective during the PAL effective period,
as would be required under subsection (I)(5), such distribution shall be made
as if the PAL had been adjusted.
b.
The Director shall decide 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 Director determines is
appropriate.
2. Each
emissions unit(s) shall comply with the allowable emission limitation on a
12-month rolling basis. The Director may approve the use of monitoring systems
(source testing, emission factors, etc.) other than CEMS, CERMS, PEMS, or CPMS
to demonstrate compliance with the allowable emission limitation.
3. Until the Director issues the revised
permit incorporating allowable limits for each emissions unit, or each group of
emissions units, as required under subsection (H)(1)(b), the source shall
continue to comply with a source-wide, multi-unit emissions cap equivalent to
the level of the PAL emission limitation.
4. Any physical change or change in the
method of operation at the major source will be subject to the nonattainment
major NSR requirements if such change meets the definition of major
modification.
5. The major source
owner or operator shall continue to comply with any applicable requirements
that may have applied either during the PAL effective period or before the PAL
effective period except for those emission limitations that had been
established pursuant to
R18-2-403(C) or
R18-2-406(H), but
were eliminated by the PAL in accordance with subsection (A)(2)(c).
I. Renewal of a PAL.
1. The Director shall follow the procedures
specified in subsection (D) in approving any request to renew a PAL for a major
source, and shall provide both the proposed PAL level and a written rationale
for the proposed PAL level to the public for review and comment. During such
public review, any person may propose a PAL level for the source for
consideration by the Director.
2.
Application deadline. A major source owner or operator shall submit a timely
application to the Director to request renewal of a PAL. A timely application
is one that is submitted at least six months prior to, but not earlier than 18
months from, the date of permit expiration. This deadline for application
submittal is to ensure that the permit will not expire before the permit is
renewed. If the owner or operator of a major source submits a complete
application to renew the PAL within this time period, then the PAL shall
continue to be effective until the revised permit with the renewed PAL is
issued.
3. Application
requirements. The application to renew a PAL permit shall contain the following
information.
a. The information required in
subsections (B)(1) through (3).
b.
A proposed PAL level.
c. The sum of
the potential to emit of all emissions units under the PAL (with supporting
documentation).
d. Any other
information the owner or operator wishes the Director to consider in
determining the appropriate level for renewing the PAL.
4. PAL adjustment. In determining whether and
how to adjust the PAL, the Director shall consider the options outlined in
subsections (I)(4)(a) and (b). However, in no case may any such adjustment fail
to comply with subsection (I)(4)(c).
a. If
the emissions level calculated in accordance with subsection (E) is equal to or
greater than 80% of the PAL level, the Director may renew the PAL at the same
level without considering the factors set forth in subsection (I)(4)(b);
or
b. The Director may set the PAL
at a level that the Director determines to be more representative of the
source's baseline actual emissions, or that the Director determines to be more
appropriate considering air quality needs, advances in control technology,
anticipated economic growth in the area, desire to reward or encourage the
source's voluntary emissions reductions, or other factors as specifically
identified by the Director in the Director's written rationale.
c. Notwithstanding subsections (I)(4)(a) and
(b):
i. If the potential to emit of the major
source is less than the PAL, the Director shall adjust the PAL to a level no
greater than the potential to emit of the source; and
ii. The Director shall not approve a renewed
PAL level higher than the current PAL, unless the PAL has been increased in
accordance with subsection (J).
5. If the compliance date for an applicable
requirement that applies to the PAL source occurs during the PAL effective
period, and if the Director has not already adjusted for such requirement, the
PAL shall be adjusted at the time of PAL permit renewal or renewal of the
source's Class I permit, whichever occurs first.
J. Increasing a PAL during the PAL effective
period.
1. The Director may increase a PAL
emission limitation only if the following requirements are met:
a. The owner or operator of the major 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 source's
emissions to equal or exceed its PAL.
b. As part of this application, the major
source owner or operator shall demonstrate that the sum of the baseline actual
emissions of the small emissions units, plus the sum of the baseline actual
emissions of the significant and major emissions units assuming application of
BACT or LAER equivalent controls, plus the sum of the PAL allowable emissions
of the new or modified emissions unit(s) exceeds the PAL. The level of control
that would result from BACT or LAER equivalent controls on each significant or
major emissions unit shall be determined by conducting a new BACT or LAER
analysis at the time the application is submitted, as applicable for the
particular PAL pollutant, unless the emissions unit is currently required to
comply with a BACT or LAER requirement that was established within the
preceding 10 years. In such a case, the assumed control level for that
emissions unit shall be equal to the level of BACT or LAER with which that
emissions unit must currently comply.
c. The owner or operator obtains a major NSR
permit for all emissions unit(s) identified in subsection (J)(1)(a), regardless
of the magnitude of the 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.
d. The PAL
permit shall require that the increased PAL level shall be effective on the day
any emissions unit that is part of the PAL major modification becomes
operational and begins to emit the PAL pollutant.
2. The Director shall calculate the new PAL
level as the sum of the PAL allowable emissions for each modified or new
emissions unit, plus the sum of the baseline actual emissions of the
significant and major emissions units (assuming application of BACT or LAER
equivalent controls as determined in accordance with subsection (J)(1)(b), plus
the sum of the baseline actual emissions of the small emissions
units.
3. The PAL permit shall be
revised to reflect the increased PAL level pursuant to the public notice
requirements of subsection (D).
K. Monitoring requirements for PALs.
1. General requirements.
a. 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.
b. The PAL
monitoring system must employ one or more of the four general monitoring
approaches meeting the minimum requirements set forth in subsections (K)(2)(a)
through (d) and must be approved by the Director.
c. Notwithstanding subsection (K)(1)(b), the
owner or operator may also employ an alternative monitoring approach if
approved by the Director as meeting the requirements of subsection
(K)(1)(a).
d. Failure to use a
monitoring system that meets the requirements of this Section renders the PAL
invalid.
2. Minimum
performance requirements for approved monitoring approaches. The following are
acceptable general monitoring approaches when conducted in accordance with the
minimum requirements in subsections (K)(3) through (9):
a. Mass balance calculations for activities
using coatings or solvents,
b.
CEMS,
c. CPMS or PEMS,
and
d. Emission factors.
3. Mass balance calculations. An
owner or operator using mass balance calculations to monitor PAL pollutant
emissions from activities using coating or solvents shall meet the following
requirements:
a. 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;
b. Assume that the emissions unit emits all
of the PAL pollutant that is contained in or created by any raw material or
fuel used in or at the emissions unit, if it cannot otherwise be accounted for
in the process; and
c. Where the
vendor of a material or fuel, which is used in or at the emissions unit,
publishes a range of pollutant content from such material, the owner or
operator must use the highest value of the range to calculate the PAL pollutant
emissions unless the Director determines there is site-specific data or a
site-specific monitoring program to support another content within the
range.
4. CEMS. An owner
or operator using CEMS to monitor PAL pollutant emissions shall meet the
following requirements:
a. CEMS must comply
with applicable Performance Specifications found in 40 CFR 60, Appendix B;
and
b. CEMS must sample, analyze
and record data at least every 15 minutes while the emissions unit is
operating.
5. CPMS or
PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant
emissions shall meet the following requirements:
a. The CPMS or the PEMS must be based on
current site-specific data demonstrating a correlation between the monitored
parameter(s) and the PAL pollutant emissions across the range of operation of
the emissions unit; and
b. Each
CPMS or PEMS must sample, analyze, and record data at least every 15 minutes,
or at another less frequent interval approved by the Director, while the
emissions unit is operating.
6. Emission factors. An owner or operator
using emission factors to monitor PAL pollutant emissions shall meet the
following requirements:
a. All emission
factors shall be adjusted, if appropriate, to account for the degree of
uncertainty or limitations in the factors' development;
b. The emissions unit shall operate within
the designated range of use for the emission factor, if applicable;
and
c. If technically practicable,
the owner or operator of a significant emissions unit that relies on an
emission factor to calculate PAL pollutant emissions shall conduct validation
testing to determine a site-specific emission factor within six months of PAL
permit issuance, unless the Director determines that testing is not
required.
7. 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.
8.
Notwithstanding the requirements in subsections (K)(3) through (7), where an
owner or operator of an emissions unit cannot demonstrate a correlation between
the monitored parameter(s) and the PAL pollutant emissions rate at all
operating points of the emissions unit, the Director shall, at the time of
permit issuance:
a. Establish default
value(s) for determining compliance with the PAL based on the highest potential
emissions reasonably estimated at such operating point(s), or
b. Determine that operation of the emissions
unit during operating conditions when there is no correlation between monitored
parameter(s) and the PAL pollutant emissions is a violation of the
PAL.
9. 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
Director. Such testing must occur at least once every five years after issuance
of the PAL.
L.
Recordkeeping requirements.
1. The PAL permit
shall require an owner or operator to retain a copy of all records necessary to
determine compliance with any requirement of this Section and with the PAL,
including a determination of each emissions unit's 12-month rolling total
emissions, for five years from the date of such record.
2. The PAL permit shall require an owner or
operator to retain a copy of the following records for the duration of the PAL
effective period plus five years:
a. A copy
of the PAL permit application and any applications for revisions to the PAL,
and
b. Each annual certification of
compliance pursuant to
R18-2-309(2) and
the data relied on in certifying compliance.
M. Reporting and notification requirements.
The owner or operator shall submit semi-annual monitoring reports and prompt
deviation reports to the Director in accordance with
R18-2-306(A)(5) .
The reports shall meet the following requirements:
1. Semi-annual report. The semi-annual report
shall be submitted to the Director within 30 days of the end of each reporting
period. This report shall contain the following information:
a. The identification of owner and operator
and the permit number.
b. Total
annual emissions (tons/year) based on a 12-month rolling total for each month
in the reporting period recorded pursuant to subsection (L)(1).
c. All data relied upon, including, but not
limited to, any Quality Assurance or Quality Control data, in calculating the
monthly and annual PAL pollutant emissions.
d. A list of any emissions units modified or
added to the major source during the preceding six-month period.
e. The number, duration, and cause of any
deviations or monitoring malfunctions (other than the time associated with zero
and span calibration checks), and any corrective action taken.
f. A notification of a shutdown of any
monitoring 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 subsection (K)(7).
g. A certification by the responsible
official consistent with
R18-2-304(I).
2. Deviation report. The major
source owner or operator shall promptly submit reports of any deviations or
exceedance of the PAL permit requirements, including periods where no
monitoring is available, in accordance with
R18-2-306(A)(5) .
The reports shall contain the following information:
a. The identification of owner and operator
and the permit number,
b. The PAL
permit requirement that experienced the deviation or that was
exceeded,
c. Emissions resulting
from the deviation or the exceedance, and
d. A certification by the responsible
official consistent with
R18-2-304(I).
3. Re-validation results. The
owner or operator shall submit to the Director the results of any re-validation
test or method within three months after completion of such test or
method.
Notes
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