NR 408.06(2)(2) Prior to the issuance of a permit under this chapter, federally enforceable emissions offsets shall be obtained from the same source or other sources in the same nonattainment area, except that the emissions offsets may be obtained from a source in another nonattainment area if both of the following apply:

NR 408.06(2)(a)(a) The other area has an equal or higher nonattainment classification than the area in which the source is located.

NR 408.06(2)(b)(b) Emissions from the other area contribute to a violation of a national ambient air quality standard in the nonattainment area in which the proposed new or modified source would be constructed.

NR 408.06(3)(3) The total annual tonnage of emissions of any applicable air contaminant allowed from the proposed new source, or net emissions increase from the modification, shall be offset by an equal or greater reduction, as applicable, in the actual emissions of the air contaminant from the same or other sources.

NR 408.06(4)(4) In meeting the requirements of sub. (3) for ozone nonattainment areas classified under section 182 of the Act (42 USC 7511a), the ratio of total actual emission reductions of VOCs, and nitrogen oxides where applicable, to the net emissions increase for the same air contaminant class shall be as follows:

NR 408.06(5)(5) Within an ozone transport region, for any area designated as ozone attainment, unclassifiable, or rural transport or marginal nonattainment, the ratio of total actual emissions reductions of VOCs, and nitrogen oxides where applicable, to the net emissions increase for the same air contaminant class shall be at least 1.15 to 1.

NR 408.06(6)(6) A major modification which has a significant net emissions increase of VOCs, or nitrogen oxides where applicable, which is located in an extreme nonattainment area for ozone will be considered to comply with the offset requirements under s. NR 408.05 if the owner or operator of the source elects to offset the proposed emissions increase of VOCs, and nitrogen oxides where applicable, by a greater reduction in actual emissions from other discrete operations, units or pollutant emitting activities within the source at an internal offset ratio at least 1.3 to 1.

NR 408.06(7)(a)(a) Emissions reductions achieved by shutting down an existing source or curtailing production or operating hours below baseline levels may be generally credited if:

NR 408.06(7)(a)1.1. The reductions are surplus, permanent, quantifiable and federally enforceable.

NR 408.06(7)(a)2.2. The area has a U.S. environmental protection agency approved state implementation plan, except as provided in par. (b).

NR 408.06(7)(a)3.3. The source notifies the department in writing prior to the date the shut down or curtailment occurs. The notification shall include documentation of the type and quantity of emission reduction credit to be generated.

NR 408.06(7)(a)4.4. The shutdown or curtailment occurs on or after the date specified for this purpose in the state implementation plan, and if the date specified is on or after the date of the most recent emissions inventory used in the plan’s demonstration of attainment. The department 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 the previously shut down or curtailed sources. However, no credit is available for shutdowns which occurred prior to August 7, 1977.

NR 408.06(7)(b)(b) The emission reductions described in par. (a) may be credited in the absence of a U.S. environmental protection agency approved state implementation plan only if the shutdown or curtailment occurs on or after the date the construction permit application is filed or if the applicant can establish that the proposed new source is a replacement for the shut down or curtailed source, and the cutoff date provisions of par. (a) 4. are observed.

NR 408.06(8)(8) No emissions reduction credit may be allowed for reductions in any organic compound specifically excluded from the definition of “VOC” in s. NR 400.02 (162).

NR 408.06(9)(9) Credit for an emissions reduction may be claimed to the extent that the department has not relied on it in issuing any permit under ch. NR 405, 406, 407 or this chapter or the state has not relied on it in demonstrating attainment or reasonable further progress. Incidental emissions reductions which are not otherwise required under the Act or chs. NR 400 to 499 may be creditable as emissions reductions for such purposes if the emissions reductions meet the applicable requirements of subs. (1) and (2).

NR 408.06(10)(10) The total increase in emissions, in tons per year, resulting from a major modification that must be offset in accordance with this section shall be determined by summing the difference between the allowable emissions after the modification and the actual emissions before the modification for each emissions unit.

NR 408.06 HistoryHistory: Cr. Register, May, 1993, No. 449, eff. 6-1-93; am. (4) (intro.), (a), (5), Register, December, 1996, No. 492, eff. 1-1-97; am. (2) (intro.), (a) and (8), Register, October, 1999, No. 526, eff. 11-1-99; CR 03-118: cr. (10) Register June 2007 No. 618, eff. 7-1-07; CR 10-050: cr. (1) (cm) Register November 2010 No. 659, eff. 12-1-10; CR 13-070: am. (1) (a) Register July 2014 No. 703, eff. 8-1-14.

NR 408.07NR 408.07 Source impact analysis. The applicant for a permit under this chapter shall demonstrate to the satisfaction of the department that all of the following conditions are met:

NR 408.07(1)(1) The emissions offsets required under s. NR 408.06, when considered in conjunction with the proposed emissions increase, will have a net air quality benefit in the affected area, as required under s. NR 408.06 (1) (d).

NR 408.07(2)(2) The emissions from the proposed new major source or major modification, when considered in conjunction with the emissions offsets required under s. NR 408.06, will not contribute to nonattainment in, or interfere with maintenance by, any other state with respect to any national primary or secondary ambient air quality standard.

NR 408.07(3)(3) The emissions from the proposed new major source or major modification, when considered in conjunction with the emissions offsets required under s. NR 408.06, will not interfere with measures required to be included in the applicable implementation plan for any other state under a program for the prevention of significant deterioration or for the protection of visibility.

NR 408.07 HistoryHistory: Cr. Register, May, 1993, No. 449, eff. 6-1-93; am. (intro.), Register, December, 1996, No. 492, eff. 1-1-97.