(1)
Definitions.
a.
"Major stationary source
" means any of the following:
(1)
Any stationary source of air contaminants which emits, or has the potential to
emit, 100 tons per year or more of any regulated air contaminant;
(2) Any physical change that would occur at a
stationary source not qualifying under subparagraph (1) as a major stationary
source, if the change would constitute a major stationary source by
itself;
(3) For ozone nonattainment
areas, sources with the potential to emit 100 tpy or more of volatile organic
compounds or oxides of nitrogen in areas classified as "marginal" or
"moderate," 50 tpy or more in areas classified as "serious," 25 tpy or more in
areas classified as "severe" and 10 tpy or more in areas classified as
"extreme"; except that the references in this paragraph to 100, 50,25, and 10
tpy of nitrogen oxides shall not apply with respect to any source for which the
Administrator has made a finding, under Section 182(f)(1) or (2) of the Clean
Air Act, that requirements under Section 182(f) of the Clean Air Act do not
apply;
(4) For ozone transport
regions established pursuant to Section 184 of the Clean Air Act, sources with
potential to emit 50 tpy or more of volatile organic compounds;
(5) For carbon monoxide nonattainment areas
that both are classified as "serious" and in which there are stationary sources
which contribute significantly to carbon monoxide levels, sources with the
potential to emit 50 tpy or more of carbon monoxide; or
(6) For
particulate matter
(PM
10), nonattainment areas classified as "serious,"
sources with the
potential to emit 70 tpy or more of
PM
10.
A major stationary source that is major for volatile organic
compounds shall be considered major for ozone.
b.
"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 net emission increase of
any regulated air contaminant.
(1) Any net
emissions increase that is considered significant for volatile organic
compounds shall be considered significant for ozone.
(2) A physical change, or change in the
method of operation, shall not include: Routine maintenance, repair, and
replacement;
Use of an alternative fuel or raw material by reason of an
order under Sections 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 in effect pursuant to the Federal Power
Act;
Use of an alternative fuel by reason of an order or rule
under Section 125 of the Clean Air Act;
Any change in ownership at a stationary source;
Use of an alternative fuel at a steam generating unit to the
extent that the fuel is generated from municipal solid waste;
Use of an alternative fuel or raw material by a stationary
source which the source was capable of accommodating before December 21, 1976,
unless such change would be prohibited by any enforceable permit condition;
or
An increase in the hours of operation or in the production
rate, unless such change is prohibited under any enforceable permit
condition.
c.
"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 only if the limitation or the
effect it would have on emissions is federally enforceable. Secondary emissions
do not count in determining the potential to emit of a stationary source.
The provisions of this paragraph do not apply to a 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:
Coal cleaning plants (with thermal dryers);
Kraft pulp mills;
Portland cement plants;
Primary zinc smelters;
Iron and steel mills;
Primary aluminum ore reduction plants;
Primary copper smelters;
Municipal incinerators capable of charging more than 250 tons
of refuse per day;
Hydrofluoric, sulfuric, or nitric acid plants;
Petroleum refineries;
Lime plants;
Phosphate rock processing plants;
Coke oven batteries;
Sulfur recovery plants;
Carbon black plants (furnace process);
Primary lead smelters;
Fuel conversion plants;
Sintering plants;
Secondary metal production plants;
Chemical process plants;
Fossil-fuel boilers (or combination thereof) totaling more
than 250 million British thermal units per hour heat input;
Petroleum storage and transfer units with a total storage
capacity exceeding 300,000 barrels;
Taconite ore processing plants;
Glass fiber processing plants;
Charcoal production plants;
Fossil fuel-fired steam electric plants of more than 250
million British thermal units per hour heat input;
Any other stationary source category which, as of August 7,
1980, is being regulated under Section 111 or 112 of the Clean Air Act, 42
U.S.C. §§7401 et seq.
d.
"Lowest achievable emission rate
" means, for any source, that rate of emissions based on the
following, whichever is more stringent:
(1)
The most stringent emission limitation which is contained in the implementation
plan of any state for such class or category of stationary source, unless the
owner or operator of the proposed stationary source demonstrates that such
limitations are not achievable; or
(2) The most stringent
emission limitation
which is achieved in practice by such class or category of source.
This term, applied to a modification, means the lowest
achievable emission rate for the new or modified emission units within the
stationary source.
This term may include a design, equipment, material, work
practice or operational standard or combination thereof.
In no event shall the application of this term permit a
proposed new or modified stationary source to emit any regulated air
contaminant in excess of the amount allowable under applicable new source
standards of performance.
e.
"Secondary emissions"
means emissions which occur or could occur as a result of the construction or
operation of a major
stationary source or major modification, but do not
necessarily come from the major
stationary source or major modification itself.
For purposes of this rule, secondary emissions must be specific and
well-defined, must be quantifiable, and must affect the same general
nonattainment area as the
stationary source or modification which causes the
secondary emission. Secondary emissions may include, but are not limited to:
Emissions from barges or trains coming to or from the new or
modified stationary source; and Emissions from any off-site support facility
which would not otherwise be constructed or increase its emissions as a result
of the construction or operation of the major stationary source or major
modification.
f.
(1)
"'Net emissions increase
" means the amount by which the sum of the following exceeds
zero:
Any increase in actual emissions from a particular physical
change or change in the method of operation at a stationary source; and
Any other increases and decreases in actual emissions at the
source that are contemporaneous with the particular change and are otherwise
creditable.
(2) An increase or
decrease in actual emissions is contemporaneous with the increase from the
particular change only if it occurs between the date five years before
construction on the particular change commences and the date that the increase
from the particular change occurs.
(3) An increase or decrease in actual
emissions is creditable only if the director has not relied on it in issuing a
permit for the source under this rule which permit is in effect when the
increase in actual emissions from the particular change occurs.
(4) An increase in actual emissions is
creditable only to the extent that the new level of actual emissions exceeds
the old level.
(5) A decrease in
actual emissions is creditable only to the extent that:
The old level of actual emissions or the old level of
allowable emissions, whichever is lower, exceeds the new level of actual
emissions;
It is an enforceable permit condition at and after the time
that actual construction on the particular change begins;
The director has not relied on it in issuing any other
permit;
Such emission decreases have not been used for showing
reasonable further progress; and
It has approximately the same qualitative significance for
public health and welfare as that attributed to the increase from the
particular change.
(6) 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, not to exceed 180
days.
g.
"Emissions unit or installation " means an identifiable piece of
process equipment.
h.
"Reconstruction " will be presumed to have taken place where the fixed
capital cost of the new components exceeds 50 percent of the fixed capital cost
of a comparable entirely new stationary source. Any final decision as to
whether reconstruction has occurred shall be made in accordance with the
provisions of new source performance standards (see 567-subrule 23.1(2)). A
reconstructed stationary source will be treated as a new stationary source for
purposes of this rule. In determining lowest achievable emission rate for a
reconstructed stationary source, the definitions in the new source performance
standards shall be taken into account in assessing whether a new source
performance standard is applicable to such stationary source.
i.
"Fixed capital cost"
means the capital needed to provide all the depreciable components.
j.
"Fugitive emissions "
means those emissions which could not reasonably pass through a stack, chimney,
vent, or other functionally equivalent opening.
k.
"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:
Pollutant and Emissions Rate
Carbon monoxide: 100 tons per year (tpy)
Nitrogen oxides: 40 tpy
Sulfur dioxide: 40 tpy
Particulate matter: 25 tpy
Ozone: 40 tpy of volatile organic compounds
Lead: 0.6 tpy
PM10: 15 tpy
l.
"Allowable emissions "
means the emissions rate calculated using the maximum rated capacity of the
source (unless the source is subject to an enforceable permit condition which
restricts the operating rate, or hours of operation, or both) and the most
stringent of the following:
(1) Applicable
standards as set forth in 567-Chapter 23;
(2) Any applicable state implementation plan
emissions limitation, including those with a future compliance date;
or
(3) The emissions rate specified
as an enforceable permit condition, including those with a future compliance
date.
m.
"Enforceable permit condition " for the purpose of this rule means any
of the following limitations and conditions: requirements developed pursuant to
new source performance standards, prevention of significant deterioration
standards, emission standards for hazardous air pollutants, requirements within
the state implementation plan, and any permit requirements established pursuant
to this rule, or under construction or Title V operating permit
rules.
n.
(1)"Actual emissions " means
the actual rate of emissions of a pollutant from an emissions unit as
determined in accordance with subparagraphs (2) to (4) below.
(2) 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 two-year period which precedes the
particular date and which is representative of normal source operation. The
reviewing authority shall 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.
(3) The
director may presume that source-specific allowable emissions for the unit are
equivalent to the actual emissions of the unit.
(4) For any emissions unit which has not
begun normal operations on the particular date, actual emissions shall equal
the potential to emit of the unit on that date.
o.
"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.
p.
"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:
(1) Begun, or caused to begin, a
continuous program of actual on-site construction of the source, to be
completed within a reasonable time; or
(2) 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 source to be completed within a reasonable time.
q.
"Necessary
preconstruction approvals or permits " means those permits or
approvals required under federal air quality control laws and regulations and
those air quality control laws and regulations which are part of the state
implementation plan.
r.
"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 operating, this term refers to those on-site activities other than
preparatory activities which mark the initiation of the change.
s.
"Building, structure, or
facility" 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). Pollutant-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) as described 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).
(2)
Applicability. Areas designated as attainment, nonattainment,
or unclassified are as listed in
40 CFR §81.316 as amended through March
19, 1998.
a. The requirements contained in
rule
567-3120.
(455B) shall apply to any new major
stationary source or major modification
that, as of the date the permit is issued, is major for any pollutant for which
the area in which the source would construct is designated as
nonattainment.
b. The requirements
contained in rule
567-3120.
(455B) shall apply to each nonattainment pollutant that the source will emit or
has 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 for which the source is major.
c. Particulate matter. If a major source or
major modification is proposed to be constructed in an area designated
nonattainment for
particulate matter, then emission offsets must be achieved
prior to startup.
If a major source or major modification is proposed to be
constructed in an area designated attainment or unclassified for particulate
matter, but the modeled (EPA-approved guideline model) worst case ground level
particulate concentrations due to the major source or major modification in a
designated particulate matter nonattainment area is equal to or greater than
five micrograms per cubic meter (24-hour concentration), or one microgram per
cubic meter (annual arithmetic mean), then emission offsets must be achieved
prior to startup.
d. Sulfur
dioxide. If a
major source or major modification is proposed to be constructed
in an area designated nonattainment for sulfur dioxide, then emission offsets
must be achieved prior to
startup.
If a major source or major modification is proposed to be
constructed in an area designated attainment or unclassified for sulfur
dioxide, but the modeled (EPA-approved guideline model) worst case ground level
sulfur dioxide concentrations due to the major source or major modification in
a designated sulfur dioxide nonattainment area is equal to or greater than 25
micrograms per cubic meter (three-hour concentration), five microgram per cubic
meter (24-hour concentration), or one microgram per cubic meter (annual
arithmetic mean), then emission offsets must be achieved prior to
startup.
e. 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 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 rule shall apply to the
source or modification as though construction had not yet commenced on the
source or modification.
(3)
Emission offsets.
a. Emission offsets shall be obtained from
the same source or other sources in the same
nonattainment area, except that
the required emissions reductions may be obtained from a source in another
nonattainment area if:
(1) The other area,
which must be nonattainment for the same pollutant, has an equal or higher
nonattainment classification than the nonattainment area in which the source is
located, and
(2) Emissions from
such other nonattainment areas contribute to a violation of a national ambient
air quality standard in the nonattainment area in which the proposed new or
modified source would construct.
b. Emission offsets for any regulated air
contaminant in the designated nonattainment area shall provide for reasonable
further progress toward attainment of the applicable national ambient air
quality standards and provide a positive net air quality benefit in the
nonattainment area.
c. The
increased emissions of any applicable nonattainment air pollutant allowed from
the proposed new or modified source shall be offset by an equal or greater
reduction, as applicable, in the total tonnage and impact of actual emissions,
as stated in subrule 31.20(4), of such air pollutant from the same or other
sources. For purposes of subrule 31.20(3), actual emissions shall be determined
in accordance with subparagraphs 31.20(1)"n"(l) and
(2).
d. All emissions reductions
claimed as offset credit shall be federally enforceable prior to, or upon, the
issuance of the permit required under this rule and shall be in effect by the
time operation of the permitted new source or modification begins.
e. Proposals for emission offsets shall be
submitted with the application for a permit for the major source or major
modification. All approved emission offsets shall be made a part of the permit
and shall be deemed a condition of expected performance of the major source or
major modification.
(4)
Acceptable emission offsets.
a.
Equivalence. The effect
of the reduction of emissions must be measured or predicted to occur in the
same area as the emissions of the major source or major modification. It can be
assumed that, if the emission offsets are obtained from an existing source on
the same premises or in the immediate vicinity of the major source or major
modification and if the air contaminant disperses from substantially the same
stack height, the emissions will be equivalent and may be offset. Otherwise, an
adequate dispersion model must be used to predict the effect. If the reduction
accomplished at the source is as specified in subrule 31.20(3) and if the
effect of the reduction is measured or predicted to occur in the same area as
the emissions of the major source or major modification, the effect of the
reduction at the measured or predicted point does not have to exactly offset
the effect of the major source or major modification.
b. Reserved.
c.
Control of uncontrolled existing
sources. If control equipment is proposed for a presently uncontrolled
existing source for which controls are not required by rules, then credit may
be allowed for any reduction below the source's potential to emit. The
reduction shall be proposed at the time of permit application. Any such
reductions which occurred prior to January 1, 1978, shall not be accepted for
offsets.
d.
Greater control
of existing sources. If more effective
control equipment for a source
already in compliance with the SIP allowable level is proposed to offset the
emissions of the major source or major modification in or affecting a
nonattainment area, then the difference in the emissions between the actual
level on January 1,1978, and the new level can be credited for offsets. (This
does not allow credit to be granted for any reductions in actual emissions
required by the SIP subsequent to January 1, 1978.)
For example, if a cyclone that is being used to meet a SIP
emission standard is emitting X1 lbs/hr and if it is to
be replaced by a bag filter emitting X2lbs/hr, an
emission offset equal to (x1 -
X2) lbs/hr may be allowed toward the total required
reduction.
e.
Fugitive dust offsets. Credits may be allowed for permanent
control of
fugitive dust. EPA's "Technical Guidance for Control of Industrial
Process Fugitive Particulate Emissions" (EPA-450/3-77-010, March 1977) shall be
used as a guide to estimate reduction from
fugitive dust controls on
traditional sources. Traditional source means a source category for which a
particulate
emission standard has been established in 567-subrule 23.1(2),
567-paragraph 23.3(2)
"a" or
"b" or
567-234.
(455B). The emission factors shall be modified to reflect realistic reductions.
This would correspond to a consideration of particles in the less than 3 micron
size range and the effectiveness of the
fugitive dust control method.
f.
Fuel switching
credits. Credit may be allowed for fuel switching provided there is a
demonstration by the applicant that supplies of the cleaner fuel will be
available to the applicant for a minimum of five years. The demonstration must
include, as a minimum, a written contract with the fuel supplier that the fuel
will not be interrupted. The permit for the existing source shall be amended to
provide for maintaining those offsets resulting from the fuel switching before
offset credit will be granted.
g.
Reduction credits. Credit for an emissions reduction can be
claimed to the extent that the
Administrator and the department have not:
(1) relied on it in issuing any permit under
regulations approved pursuant to 40
CFR Parts
51 (amended through April 9,
1998), 55 (amended through August 4, 1997), 63 (amended through December 28,
1998), 70 (amended through November 26, 1997), or 71 (amended through October
22, 1997);
(2) relied on it in
demonstrating attainment or reasonable further progress; or
(3) the reduction is not otherwise required
under the Clean Air Act. Incidental emissions reductions which are not
otherwise required under the Act shall be creditable as emissions reductions
for such purposes if such emissions reductions meet the requirements of subrule
31.20(3).
h.
Derating of equipment. If the emissions from a major source or major
modification are proposed to be offset by reducing the operating capacity of
another existing source, then credit may be allowed for this provided proper
documentation (such as stack test results) showing the effect on emissions due
to derating is submitted. The permit for the existing source must be amended to
limit the operating capacity before offsets will be allowed.
i.
Shutdown or curtailment.
(1) Emissions reductions achieved by shutting
down an existing source or curtailing production or operating hours below
baseline levels may be generally credited if such reductions are surplus,
permanent, quantifiable, and federally enforceable, and if the area has an
EPA-approved attainment plan. In addition, the shutdown or curtailment is
creditable only if it occurred on or after the date specified for this purpose
in the plan, and if such date is on or after the date of the most recent
emissions inventory or attainment demonstration. However, in no event may
credit be given for shutdowns which occurred prior to January 1, 1978. For
purposes of this paragraph, the director may consider a prior shutdown or
curtailment to have occurred after the date of its most recent emissions
inventory, if the inventory explicitly includes as current existing emissions
the emissions from such previously shutdown or curtailed sources. The work
force shall be notified of the proposed curtailment or shutdown by the source
owner or operator.
(2) The
reductions described in subparagraph 31.20(4) "i" (1) may be
credited in the absence of any approved attainment demonstration only if the
shutdown or curtailment occurred on or after the date the new source permit
application is filed, or, if the applicant can establish that the proposed new
source is a replacement for the shutdown or curtailed source, and the cutoff
date provisions in 31.20(4)"i" (1) are observed.
j.
External emission
offsets. If the emissions from the major source or major modification
are proposed to be offset by reduction of emissions from a source not owned or
operated by the owner or operator of the major source or major modification,
then credit may be allowed for such reductions provided the external source's
permit is amended to require the reduced emissions or a consent order is
entered into by the department and the existing source. Consent orders for
external offsets must be incorporated into the SIP and be approved by EPA
before offset credit may be granted.
