NR 405.18(1)(a)(a) This section applies to any existing major stationary source which wishes to operate under a PAL. The department may approve the use of a PAL for any existing major stationary source if the source and its application for a PAL meets all of the requirements in this section.
NR 405.18(1)(b)
(b) 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 this section and complies with the PAL permit:
NR 405.18(1)(b)1.
1. Is not a major modification for the PAL regulated air contaminant.
NR 405.18(1)(c)
(c) Except as provided under
par. (b) 3., 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.
NR 405.18(2)
(2) Definitions. The following definitions apply to terms used in this subsection for the purpose of developing and implementing PALs consistent with this section.
NR 405.18(2)(a)
(a) “Allowable emissions" has the meaning given in
s. NR 405.02 (2), except as this definition is modified according to both of the following:
NR 405.18(2)(a)1.
1. 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.
NR 405.18(2)(a)2.
2. An emissions unit's potential to emit shall be determined using the definition in
s. NR 405.02 (25), except that the words “or enforceable as a practical matter" should be added after “federally enforceable".
NR 405.18(2)(b)1.
1. Any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL regulated air contaminant in an attainment area.
NR 405.18(2)(b)2.
2. Any emissions unit that emits or has the potential to emit the PAL regulated air contaminant in an amount that is equal to or greater than the major source threshold for the PAL regulated air contaminant as defined by the Act for nonattainment areas.
NR 405.18 Note
Note: In accordance with the definition of major stationary source in section 182 (c) of the Act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year.
NR 405.18(2)(c)
(c) “PAL effective date" means the date of issuance of the PAL permit except that, in the case of an increased PAL, “PAL effective date" means the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL regulated air contaminant.
NR 405.18(2)(d)
(d) “PAL effective period" means the period beginning with the PAL effective date and ending 10 years later.
NR 405.18(2)(e)
(e) “PAL major modification" means, notwithstanding
s. NR 405.02 (21) and
(24), any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL regulated air contaminant at a level equal to or greater than the PAL.
NR 405.18(2)(f)
(f) “PAL permit" means the construction permit issued by the department that establishes a PAL for a major stationary source.
NR 405.18(2)(g)
(g) “PAL regulated air contaminant" means the regulated NSR air contaminant for which a PAL is established at a major stationary source.
NR 405.18(2)(h)
(h) “Significant emissions unit" means an emissions unit that emits or has the potential to emit a PAL regulated air contaminant in an amount that is equal to or greater than the significant level, as defined in
s. NR 405.02 (27) or in the Act, whichever is lower, for that PAL regulated air contaminant, but less than the amount that would qualify the unit as a major emissions unit.
NR 405.18(2)(i)
(i) “Small emissions unit" means an emissions unit that emits or has the potential to emit the PAL regulated air contaminant in an amount less than the significant level for that PAL regulated air contaminant, as defined in
s. NR 405.02 (27) or in the Act, whichever is lower.
NR 405.18(3)
(3) Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit all of the following information to the department for approval:
NR 405.18(3)(a)
(a) 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.
NR 405.18(3)(b)
(b) 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 startups, shutdowns and malfunctions.
NR 405.18(3)(c)
(c) 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
sub. (13) (a).
NR 405.18(4)
(4) General requirements for establishing PALs. NR 405.18(4)(a)(a) The department may establish a PAL in a permit for a major stationary source if all of the following requirements are met:
NR 405.18(4)(a)1.
1. The PAL imposes 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. 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.
NR 405.18(4)(a)2.
2. The PAL is established in a PAL permit that meets the public participation requirements in
sub. (5).
NR 405.18(4)(a)4.
4. The PAL includes fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL regulated air contaminant at the major stationary source.
NR 405.18(4)(a)7.
7. The owner or operator of the major stationary source with a PAL complies with the monitoring, recordkeeping and reporting requirements provided in
subs. (12) to
(14) for each emissions unit under the PAL through the PAL effective period.
NR 405.18(4)(b)
(b) At no time during or after the PAL effective period are emissions reductions of a PAL regulated air contaminant that occur during the PAL effective period creditable as decreases for purposes of offsets under
ch. NR 408 unless the PAL is reduced by the amount of the emissions reductions and the reductions would be creditable in the absence of the PAL.
NR 405.18(5)
(5) Public participation requirements for PALs. PALs shall be established, renewed or increased, through a procedure that is consistent with
s. NR 405.15. This includes the requirement that the department 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 department shall address all material comments before taking final action on the permit.
NR 405.18(6)(a)(a) The PAL level shall be established as the sum of the baseline actual emissions, as defined in
s. NR 405.02 (2m), of the PAL regulated air contaminant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL regulated air contaminant under
s. NR 405.02 (27) or the Act, whichever is lower.
NR 405.18(6)(b)
(b) When establishing the PAL level, only one consecutive 24-month period may be used to determine the baseline actual emissions for all existing emissions units for each PAL regulated air contaminant.
NR 405.18(6)(c)
(c) A different consecutive 24-month period may be used for each different PAL regulated air contaminant.
NR 405.18(6)(d)
(d) Emissions associated with units that were permanently shut down after the 24-month period established under
par. (b) shall be subtracted from the PAL level.
NR 405.18(6)(e)
(e) 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 established under
par. (b), the emissions shall be added to the PAL level in an amount equal to the potential to emit of the units.
NR 405.18(6)(f)
(f) The department shall specify a reduced PAL level in the PAL permit to become effective on the future compliance date of any applicable federal or state regulatory requirements that the department is aware of prior to issuance of the PAL permit.
NR 405.18 Note
Note: If the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NO
X to a new rule limit of 30 ppm, 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 the unit.
NR 405.18(7)
(7) Contents of the PAL permit. The PAL permit shall contain all of the following information:
NR 405.18(7)(a)
(a) The PAL regulated air contaminant and the corresponding plant-wide emission limitation in tons per year.
NR 405.18(7)(b)
(b) The PAL effective date and the expiration date of the PAL.
NR 405.18(7)(c)
(c) A specification that if the owner or operator applies to renew a PAL in accordance with
sub. (10) before the end of the PAL effective period, the PAL does not expire at the end of the PAL effective period, but shall remain in effect until a revised PAL permit is issued by the department.
NR 405.18(7)(d)
(d) A requirement that emission calculations for compliance purposes include emissions from startups, shutdowns and malfunctions.
NR 405.18(7)(e)
(e) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of
sub. (9).
NR 405.18(7)(f)
(f) The calculation procedures that the 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
sub. (13) (a).
NR 405.18(7)(g)
(g) A requirement that the owner or operator monitor all emissions units in accordance with the provisions under
sub. (12).
NR 405.18(7)(h)
(h) A requirement to retain the records required under
sub. (13) on site. Records may be retained in an electronic format.
NR 405.18(7)(i)
(i) A requirement to submit the reports required under
sub. (14) by the required deadlines.
NR 405.18(7)(j)
(j) Any other requirements that the department deems necessary to implement and enforce the PAL.
NR 405.18(8)
(8) PAL effective period and reopening of the PAL permit. NR 405.18(8)(a)(a)
PAL effective period. The department shall specify a PAL effective period of 10 years.
NR 405.18(8)(b)1.1. During the PAL effective period, the department shall reopen and revise the PAL permit to do any of the following:
NR 405.18(8)(b)1.a.
a. Correct typographical errors in the PAL permit or correct calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL.
NR 405.18(8)(b)1.b.
b. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under
ch. NR 408.
NR 405.18(8)(b)2.
2. The department may reopen and revise the PAL permit to do any of the following:
NR 405.18(8)(b)2.a.
a. Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date.
NR 405.18(8)(b)2.b.
b. Reduce the PAL consistent with any other requirement that is enforceable as a practical matter, and that the department may impose on the major stationary source.
NR 405.18(8)(b)2.c.
c. Reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a violation of an NAAQS or a 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.
NR 405.18(8)(b)3.
3. Except for the permit reopening in
subd. 1. a. for the correction of typographical or calculation errors that do not increase the PAL level, all reopenings shall be carried out in accordance with the public participation requirements of
sub. (5).
NR 405.18(9)
(9) Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in
sub. (10) shall expire at the end of the PAL effective period, and the following requirements shall apply:
NR 405.18(9)(a)
(a) For each emissions unit, or each group of emissions units, that existed under the PAL, the owner or operator shall comply with an allowable emission limitation under a revised permit established according to the following procedures:
NR 405.18(9)(a)1.
1. Within the time frame specified for PAL renewals in
sub. (10) (b), the major stationary source shall submit a proposed allowable emission limitation for each emissions unit, or each group of emissions units, if a grouping 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 an applicable requirement that became effective during the PAL effective period, as required under
sub. (10) (e), the distribution shall be made as if the PAL had been adjusted.
NR 405.18(9)(a)2.
2. Based upon the information submitted under
subd. 1., the department shall determine whether and how the PAL allowable emissions will be distributed and issue a revised permit under
s. NR 406.035 incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate.
NR 405.18(9)(b)
(b) The owner or operator of each emissions unit or group of emissions units shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems, such as source testing, or emission factors, other than CEMS, CERMS, PEMS or CPMS, to demonstrate compliance with the allowable emission limitation.
NR 405.18(9)(c)
(c) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under
par. (a) 2., the owner or operator shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation.
NR 405.18(9)(d)
(d) Any physical change or change in the method of operation at the major stationary source shall be subject to the requirements of this chapter if the change constitutes a major modification.
NR 405.18(9)(e)
(e) The owner or operator shall continue to comply with any state or federal applicable requirements, such as BACT, RACT or NSPS, 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
s. NR 405.16 (2), but were eliminated by the PAL in accordance with the provisions in
sub. (1) (b) 3.
NR 405.18(10)(a)(a) The department shall follow the procedures specified in
sub. (5) in approving any request to renew a PAL 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 the public review, any person may propose a PAL level for the source for consideration by the department.
NR 405.18(10)(b)
(b) The owner or operator shall submit a timely application to the department 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 expiration of the PAL. If the owner or operator submits a complete application to renew the PAL within this time period, the PAL shall continue to be effective until the revised permit with the renewed PAL is issued.
NR 405.18(10)(c)
(c) The application to renew a PAL permit shall contain all of the following information:
NR 405.18(10)(c)3.
3. The sum of the potential to emit of all emissions units under the PAL, with supporting documentation.
NR 405.18(10)(c)4.
4. Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL.
NR 405.18(10)(d)
(d) In determining whether and how to adjust the PAL, the department shall consider the options outlined in
subds. 1. and
2. However, in no case may any adjustment fail to comply with
subd. 3. The adjustment options, and requirements, are as follows:
NR 405.18(10)(d)1.
1. If the emissions level calculated in accordance with
sub. (6) is equal to or greater than 80% of the existing PAL level, the department may renew the PAL at the same level without considering the factors set forth in
subd. 2.
NR 405.18(10)(d)2.
2. 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 a written rationale.
NR 405.18(10)(d)3.
3. Notwithstanding
subds. 1. and
2., if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source. 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
sub. (11).
NR 405.18(10)(e)
(e) 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 department has not already adjusted for the requirement, the PAL shall be adjusted at the time of PAL renewal or operation permit renewal, whichever occurs first.
