A. Permit Application.
(1) The owner or operator of a major stationary source may apply for a PAL permit by submitting an application to the Department that includes:
(a) A list of all emissions units at the source designated as small, major, or significant based on their potential to emit;
(b) Applicable State and federal requirements for each emissions unit;
(c) The baseline actual emissions for each emissions unit with supporting calculations and documentation including emissions associated with startup, shutdown, and malfunctions; and
(d) The method to be used to monitor each emissions unit.
(2) The source shall include in the application calculations and procedures that are to be used to convert emissions data to monthly emissions to enable calculation of 12-month rolling averages.
B. PAL Level.
(1) The PAL level for a major stationary 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 under Regulation .01B of this chapter or under the Clean Air Act, whichever is lower.
(2) When establishing the actual PAL levels for a PAL pollutant, only one consecutive 24-month period shall 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.
(3) Emissions associated with units that were permanently shut down after the 24-month period shall be subtracted from the PAL level. Emissions from units on which actual construction began after the 24-month period shall be added to the PAL level in an amount equal to the potential to emit of the units.
(4) The Department shall specify a reduced PAL level, in tons per year, in the PAL permit to become effective on the future compliance date of any applicable federal or state regulatory requirement that the Department is aware of before issuance of the PAL permit.
C. Issuance of a PAL Permit.
(1) If the Department approves an application for a PAL permit, the PAL permit shall be issued for a period not to exceed 5 years from the PAL effective date.
(2) The PAL permit shall include:
(a) The PAL pollutant and the applicable source-wide emissions limitation in tons per year;
(b) The effective date and expiration date of the PAL;
(c) Specification that if a major stationary source owner or operator applies to renew a PAL in accordance with §G of this regulation before the end of the PAL effective period, then the PAL does not expire at the end of the PAL effective period but remains in effect until a revised PAL permit is issued by the Department;
(d) A requirement that emissions calculations for compliance purposes include emissions from startup, shutdowns, and malfunctions;
(e) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of §E of this regulation;
(f) 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;
(g) A requirement that the major stationary source owner or operator monitor all emissions units and retain records, in accordance with the provisions of Regulation .09A of this chapter, which may be retained in an electronic format;
(h) A requirement to submit the reports required under Regulation .09A of this chapter by the required deadlines; and
(i) Any other requirement that the Department determines is necessary to implement and enforce the PAL.
D. General Requirements.
(1) 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.
(2) The PAL shall include emissions of only one pollutant, including quantifiable fugitive emissions of that pollutant from all emissions units.
(3) 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. 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.
(4) A person who receives a PAL permit from the Department is subject to:
(a) All applicable existing State and federal requirements; and
(b) Any future State or federal requirements that apply to an emissions unit under an approved PAL.
(5) During the PAL effective period, emission reductions of a PAL pollutant may not be creditable for use as ERCs unless the level of the PAL is reduced by the amount of the reduction and the reduction would be creditable in the absence of the PAL.
(6) PALs for existing major stationary sources shall be established, renewed, or increased through a public participation procedure that is consistent with 40 CFR §§51.160 and 51.161. The Department shall 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. All comments received by the Department shall be addressed before the Department takes final action on the permit.
E. Expiration of a PAL.
(1) Any PAL that is not renewed according to §G of this regulation shall expire at the end of the PAL effective period.
(2) Within the time frame specified for PAL renewals, the major stationary source shall submit a proposed allowable emission limitation for each emissions unit (or each group of emissions units, if this distribution is more appropriate, as determined by the Department) 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 any applicable requirement that became effective during the PAL effective period, as required under §G of this regulation, the distribution shall be made as if the PAL had been adjusted.
(3) The Department 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 Department determines is appropriate.
(4) Each emissions unit shall comply with the allowable emission limitation on a 12-month rolling basis. The Department may approve the use of monitoring systems (for example, source testing or emission factors) other than CEMs, CERMs, PEMs, or CPMs to demonstrate compliance with the allowable emission limitation.
(5) Until the Department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, the source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation.
(6) Any physical change or change in the method of operation at the major stationary source is subject to the nonattainment major NSR requirements if the change meets the definition of a major modification.
(7) 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 before the PAL effective period, except for those emission limitations that had been established pursuant to Regulation .02G of this chapter but were eliminated by the PAL in accordance with Regulation .07A(2)(c) of this chapter.
F. Reopening a PAL Permit.
(1) During the PAL effective period, the permit may be reopened to:
(a) Correct any errors in setting the PAL or to reflect a more accurate determination of emissions used to establish the PAL;
(b) Reduce the PAL if the source creates emission reduction credits; or
(c) Reflect a necessary increase in the PAL level.
(2) The Department may reopen the PAL to:
(a) Reflect a new federal or State requirement that would apply to an emissions unit after the effective date or for other reasons determined by the Department;
(b) Reduce the PAL consistent with any other requirement that is enforceable as a practicable matter, and that the Department may impose on the major stationary source; or
(c) Reduce the PAL if the Department determines that a reduction is necessary to avoid causing or contributing to:
(i) A NAAQS or PSD increment violation; or
(ii) 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.
(3) Any adjustment to the PAL shall be made through the public participation procedures required when the PAL was first established.
G. Renewal of a PAL.
(1) A person who requests renewal of a PAL permit shall apply for the renewal not later than 6 months before the existing PAL permit expiration date. If a person submits a complete application to renew the PAL within that time period, the PAL shall continue to be effective until a renewed permit is issued.
(2) The application to renew the PAL shall contain the following:
(a) The information required in §A of this regulation;
(b) A proposed PAL level;
(c) The sum of potential to emit of all emissions units under the PAL and supporting documentation; and
(d) Any other information the owner or operator wishes the Department to consider in determining the appropriate level for renewing the PAL.
(3) Adjustments at Renewal.
(a) If the sum of the emissions from each emissions unit within the PAL is 80 percent or less than the PAL, a renewed PAL permit may be issued at the same level.
(b) The Department 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 Department in its written rationale.
(c) If the potential to emit of the major stationary source is less than the PAL, the Department shall adjust the PAL to a level not greater than the potential to emit of the source, and the Department may not approve a renewed PAL level higher than the current PAL unless the major stationary source has complied with the provisions of Regulation .09A of this chapter.
(4) If a compliance date for a State or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the Department has not already adjusted for this requirement, that PAL shall be adjusted at the time of PAL renewal or Title V permit renewal, whichever occurs first.
(5) The Department shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During the public review, any person may propose a PAL level for the source for consideration by the Department.
H. Increasing a PAL.
(1) Requirements for Increasing a PAL.
(a) A PAL may be increased during the PAL effective period if the requirements of this subsection are met.
(b) 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. The application shall identify the emissions units contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL.
(c) 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 units, 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 this case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit shall currently comply.
(d) The owner or operator shall obtain a major NSR permit for all emissions units identified in this subsection regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply). These emissions units shall comply with any emissions requirements resulting from the nonattainment major NSR program processed (for example, LAER), even though they have also become subject to the PAL or continue to be subject to the PAL.
(e) The PAL permit shall require that the increased PAL level 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 Department 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 §H(1)(c) of this regulation), 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 §D(6) of this regulation.