Chapter NR 405

NR 405.17(2) (2) The department may, with the consent of the governor of any other affected state, determine that the major source or major modification may employ a system of innovative control technology if all of the following conditions are met:

NR 405.17(2)(a) (a) The proposed control system would not cause or contribute to an unreasonable risk to public health, welfare, or safety in its operation or function.

NR 405.17(2)(b) (b) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which would have been required under s. NR 405.08 (2) no later than 3 years from the time of start-up or 6 years from the date of permit issuance.

NR 405.17(2)(c) (c) The source or modification would meet the requirements equivalent to those in ss. NR 405.08 and 405.09 based on the emissions rate that the stationary source employing the system of innovative control technology would be required to meet on the date specified in par. (b).

NR 405.17(2)(d) (d) The major source or major modification would not before the date specified do any of the following:

NR 405.17(2)(d)1. 1. Cause or contribute to any violation of an applicable national ambient air quality standard.

NR 405.17(2)(d)2. 2. Impact any Class I area.

NR 405.17(2)(d)3. 3. Impact any area where an applicable increment is known to be violated.

NR 405.17(2)(e) (e) All other applicable requirements including those for public participation have been met.

NR 405.17(3) (3) The department shall withdraw any approval to employ a system of innovative control technology made under this section, if any of the following occurs:

NR 405.17(3)(a) (a) The proposed system fails by the specified date in sub. (2) (b) to achieve the required continuous emissions reduction rate.

NR 405.17(3)(b) (b) The proposed system fails before the specified date in sub. (2) (b) so as to contribute to an unreasonable risk to public health, welfare, or safety.

NR 405.17(3)(c) (c) The department 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.

NR 405.17(4) (4) If a major source or major modification fails to meet the required level of continuous emissions reduction within the specified time period, or if the approval is withdrawn in accordance with sub. (3), the department may allow the source of 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.

NR 405.17 Note Note: The deadline for achieving the required continuous emissions reduction through innovative control technology in the federal regulations (not later than 4 years from the time of startup or 7 years from permit issuance) has been changed to no later than 3 years from time of startup or 6 years from the date of permit issuance in sub. (2) (b).

NR 405.17 History History: Cr. Register, January, 1987, No. 373, eff. 2-1-87; am. (2) (intro.), (d) (intro.), (3) (intro.), Register, December, 1996, No. 492, eff. 1-1-97.

NR 405.18 NR 405.18 Plant-wide applicability limitations (PALs).

NR 405.18(1) (1) Applicability.

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)(b)2. 2. Does not have to be approved under this chapter.

NR 405.18(1)(b)3. 3. Is not subject to the provisions in s. NR 405.16 (2).

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) (b) “Major emissions unit” means either of the following:

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)3. 3. The PAL permit contains all the requirements of sub. (7).

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)5. 5. The PAL shall regulate emissions of only one air contaminant.

NR 405.18(4)(a)6. 6. The PAL has a PAL effective period of 10 years.

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)(a)8. 8. The department determines that the requirements of s. 285.63, Stats., and, if applicable, s. 285.64, Stats., are met.

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) (6) Setting the 10-year PAL level.

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 NOX 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) (b) Reopening of the PAL permit.

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)1.c. c. Revise the PAL to reflect an increase in the PAL as provided under sub. (11).

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.