MICHIGAN DEPARTMENT OF ENVIRONMENTAL QUALITY  
AIR QUALITY DIVISION  
PART 19. NEW SOURCE REVIEW FOR MAJOR SOURCES IMPACTING  
NONATTAINMENT AREAS  
(By authority conferred on the director of environmental quality by Part 55, Air  
Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA  
451, MCL 324.5501 to 324.5542)  
PART 19. NEW SOURCE REVIEW FOR MAJOR SOURCES  
IMPACTING NONATTAINMENT AREAS  
R 336.2901 Definitions.  
Rule 1901. The following definitions apply to terms used in this part. If a term  
defined here is also defined elsewhere in these rules, then the definition contained here  
supersedes for this part only:  
(a) “Actual emissions” means the actual rate of emissions of a regulated new source  
review pollutant from an emissions unit, as determined under R 336.1101(b), except that  
this definition shall not apply for calculating whether a significant emissions increase has  
occurred, or for establishing a plant wide applicability limit under R 336.2907. Instead,  
the terms “projected actual emissions” and “baseline actual emissions” shall apply for  
those purposes.  
(b) “Baseline actual emissions” means the rate of emissions, in tons per year, of a  
regulated new source review pollutant, as determined by the following:  
(i) For any existing electric utility steam generating unit, baseline actual emissions  
means the average rate, in tons per year, at which the unit actually emitted the pollutant  
during any consecutive 24-month period selected by the owner or operator within the 5-  
year period immediately preceding when the owner or operator begins actual construction  
of the project. The department shall allow the use of a different time period upon a  
determination that it is more representative of normal source operation. The following  
shall apply:  
(A) The average rate shall include fugitive emissions to the extent quantifiable, and  
emissions associated with startups, shutdowns, and malfunctions.  
(B) The average rate shall be adjusted downward to exclude any non-compliant  
emissions that occurred while the source was operating above any emission limitation  
that was legally enforceable during the consecutive 24-month period.  
(C) For a regulated new source review pollutant, when a project involves multiple  
emissions units, only one consecutive 24-month period shall be used to determine the  
baseline actual emissions for the emissions units being changed. A different consecutive  
24-month period may be used for each regulated new source review pollutant.  
(D) The average rate shall not be based on any consecutive 24-month period for  
which there is inadequate information for determining annual emissions, in tons per year,  
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and for adjusting this amount if required by paragraph (i)(B) of this subdivision.  
(ii) For an existing emissions unit, other than an electric utility steam generating unit,  
baseline actual emissions means the average rate, in tons per year, at which the emissions  
unit actually emitted the pollutant during any consecutive 24-month period selected by  
the owner or operator within the 10-year period immediately preceding either the date the  
owner or operator begins actual construction of the project, or the date a complete permit  
application is received by the department for a permit required under R 336.1201,  
whichever is earlier, except that the 10-year period shall not include any period earlier  
than November 15, 1990. All of the following shall apply:  
(A) The average rate shall include fugitive emissions to the extent quantifiable, and  
emissions associated with startups, shutdowns, and malfunctions.  
(B) The average rate shall be adjusted downward to exclude any non-compliant  
emissions that occurred while the source was operating above an emission limitation that  
was legally enforceable during the consecutive 24-month period.  
(C) The average rate shall be adjusted downward to exclude any emissions that  
would have exceeded an emission limitation with which the major stationary source must  
currently comply, had the major stationary source been required to comply with the  
limitations during the consecutive 24-month period. However, if an emission limitation  
is part of a maximum achievable control technology standard that the United States  
environmental protection agency proposed or promulgated under 40 C.F.R. part 63,  
adopted by reference in R 336.1902, then the baseline actual emissions need only be  
adjusted if the department has taken credit for such emissions reductions in an attainment  
demonstration or maintenance plan.  
(D) For a regulated new source review pollutant, when a project involves multiple  
emissions units, only 1 consecutive 24-month period shall be used to determine the  
baseline actual emissions for the emissions units being changed. A different consecutive  
24-month period may be used for each regulated new source review pollutant.  
(E) The average rate shall not be based on any consecutive 24-month period for  
which there is inadequate information for determining annual emissions, in tons per year,  
and for adjusting this amount if required by subparagraphs (B) and (C) of this paragraph.  
(iii) For a new emissions unit, the baseline actual emissions for purposes of  
determining the emissions increase that will result from the initial construction and  
operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal  
the unit's potential to emit.  
(iv) For a plant wide applicability limit for a major stationary source, the baseline  
actual emissions shall be calculated for existing electric utility steam generating units  
under paragraph (i) of this subdivision, for other existing emissions units under paragraph  
(ii) of this subdivision, and for a new emissions unit under paragraph (iii) of this  
subdivision.  
(c) “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. “A  
change in method of operation” refers to those on-site activities other than preparatory  
activities which mark the initiation of the change.  
(d) “Best available control technology” or “BACT” means an emissions limitation,  
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including a visible emissions standard, based on the maximum degree of reduction for  
each regulated new source review pollutant which would be emitted from any proposed  
major stationary source or major modification which the department, on a case-by-case  
basis, taking into account energy, environmental, and economic impacts and other costs,  
determines is achievable for such source or modification through application of  
production processes or available methods, systems, and techniques, including fuel  
cleaning or treatment or innovative fuel combustion techniques for control of such  
pollutant. Application of best available control technology shall not result in emissions  
of any pollutant which would exceed the emissions allowed by any applicable standard  
under 40 C.F.R. part 60 or 61, adopted by reference in R 336.1902. If the department  
determines that technological or economic limitations on the application of measurement  
methodology to a particular emissions unit would make the imposition of an emissions  
standard infeasible, then a design, equipment, work practice, operational standard, or  
combination thereof, may be prescribed instead to satisfy the requirement for the  
application of BACT. The standard shall, to the degree possible, set forth the emissions  
reduction achievable by implementation of the design, equipment, work practice, or  
operation, and shall provide for compliance by means which achieve equivalent results.  
(e) “Building, structure, facility, or installation” means all of the pollutant-emitting  
activities which belong to the same industrial grouping, are located on 1 or more  
contiguous or adjacent properties, and are under the control of the same person, or  
persons under common control, except the activities of any vessel. Pollutant-emitting  
activities are part of the same industrial grouping if they have the same 2-digit major  
group code associated with their primary activity. Major group codes and primary  
activities are described in the standard industrial classification manual, 1987. For  
assistance in converting North American industrial classification system codes to  
(f) “Clean coal technology” means any technology, including technologies applied at  
the precombustion, combustion, or post-combustion stage, at a new or existing facility  
which will achieve significant reductions in air emissions of sulfur dioxide or oxides of  
nitrogen associated with the utilization of coal in the generation of electricity, or process  
steam which was not in widespread use as of November 15, 1990.  
(g) “Clean coal technology demonstration project” means a project using funds  
appropriated under the heading "department of energy-clean coal technology," up to a  
total amount of $2,500,000,000 for commercial demonstration of clean coal technology,  
or similar projects funded through appropriations for the United States environmental  
protection agency. The federal contribution for a qualifying project shall be at least 20%  
of the total cost of the demonstration project.  
(h) [Reserved]  
(i) “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 has either of the following:  
(i) Begun, or caused to begin, a continuous program of actual on-site construction of  
the source, to be completed within a reasonable time.  
(ii) 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.  
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(j) “Construction” means any physical change or change in the method of operation,  
including fabrication, erection, installation, demolition, or modification of an emissions  
unit, that would result in a change in emissions.  
(k) “Continuous emissions monitoring system” or “CEMS” means all of the  
equipment that may be required to meet the data acquisition and availability requirements  
of this rule, to sample, condition, if applicable, analyze, and provide a record of  
emissions on a continuous basis.  
(l) “Continuous emissions rate monitoring system” or “CERMS” means the total  
equipment required for the determination and recording of the pollutant mass emissions  
rate, in terms of mass per unit of time.  
(m) “Continuous parameter monitoring system” or “CPMS” means all of the  
equipment necessary to meet the data acquisition and availability requirements of this  
rule, to monitor process and control device operational parameters and other information,  
and to record average operational parameter values on a continuous basis.  
(n) “Electric utility steam generating unit” means any steam electric generating unit  
that is constructed for the purpose of supplying more than 1/3 of its potential electric  
output capacity and more than 25 megawatts electrical output to any utility power  
distribution system for sale. Any steam supplied to a steam distribution system for the  
purpose of providing steam to a steam-electric generator that would produce electrical  
energy for sale is also considered in determining the electrical energy output capacity of  
the affected facility.  
(o) “Emissions unit” means any part of a stationary source that emits or would have  
the potential to emit any regulated new source review pollutant. The term emissions unit  
includes an electric steam generating unit. Each emissions unit can be classified as either  
new or existing based on the following:  
(i) A new emissions unit is any emissions unit that is, or will be, newly constructed  
and that has existed for less than 2 years from the date the emissions unit first operated.  
(ii) An existing emissions unit is any emissions unit that does not meet the definition  
of a new emissions unit. A replacement unit is an existing emissions unit and no  
creditable emission reductions shall be generated from shutting down the existing  
emissions unit that is replaced. Replacement unit means all of the following:  
(A) The emissions unit is a reconstructed unit as defined within R 336.1118(b) or the  
emissions unit completely takes the place of an existing emissions unit.  
(B) The emissions unit is identical to or functionally equivalent to the replaced  
emissions unit.  
(C) The replacement does not alter the basic design parameters of the process unit.  
(D) The replaced emissions unit is permanently removed from the major stationary  
source, otherwise permanently disabled, or permanently barred from operation by a  
permit that is enforceable as a practical matter. If the replaced emissions unit is brought  
back into operation, it shall constitute a new emissions unit.  
(p) “Federal land manager” means, with respect to any lands in the United States, the  
secretary of the department with authority over such lands.  
(q) ‘Functionally equivalent component” means a component that serves the same  
purpose as the replaced component.  
(r) "Hydrocarbon combustion flare" means either a flare used to comply with an  
applicable new source performance standard or maximum achievable control technology  
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standard, including uses of flares during startup, shutdown, or malfunction permitted  
under such a standard, or a flare that serves to control emissions of waste streams  
comprised predominately of hydrocarbons and containing not more than 230 milligrams  
per dry standard cubic meter hydrogen sulfide.  
(s) “Lowest achievable emission rate” or “LAER” means, for any source, the more  
stringent rate of emissions based on either of the following:  
(i) The most stringent emissions limitation that is contained in the implementation  
plan of any state for the same class or category of stationary source, unless the owner or  
operator of the proposed stationary source demonstrates that the limitations are not  
achievable.  
(ii) The most stringent emissions limitation that is achieved in practice by the same  
class or category of stationary sources. This limitation, when applied to a modification,  
means the lowest achievable emissions rate for the new or modified emissions units  
within a stationary source. Application of the term shall not permit a proposed new or  
modified stationary source to emit any pollutant in excess of the amount allowable under  
an applicable new source performance standard.  
(t) “Major modification” means the following:  
(i) Any physical change in or change in the method of operation of a major stationary  
source that would result in both of the following:  
(A) A significant emissions increase of a regulated new source review pollutant.  
(B) A significant net emissions increase of that pollutant from the major stationary  
source.  
(ii) Any significant emissions increase from any emissions units or net emissions  
increase at a major stationary source that is significant for volatile organic compounds  
shall be considered significant for ozone.  
(iii) A physical change or change in the method of operation shall not include any  
of the following:  
(A) Routine maintenance, repair, and replacement.  
(B) 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, 15 U.S.C.  
§792 et seq., or any superseding legislation, or by reason of a natural gas curtailment plan  
under the federal power act of 1995, 16 U.S.C. §791-828c et seq.  
(C) Use of an alternative fuel by reason of an order or rule under section 125 of the  
clean air act.  
(D) Use of an alternative fuel at a steam generating unit to the extent that the fuel is  
generated from municipal solid waste.  
(E) Use of an alternative fuel or raw material by a stationary source which meets  
either of the following:  
(1) The source was capable of accommodating before December 21, 1976, unless the  
change would be prohibited under any federally enforceable permit condition that was  
established after December 12, 1976, under prevention of significant deterioration of air  
quality regulations or new source review for major sources in nonattainment areas  
regulations.  
(2) The source is approved to use under any permit issued under R 336.1201(1)(a).  
(F) An increase in the hours of operation or in the production rate, unless such  
change is prohibited under any federally enforceable permit condition that was  
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established after December 21, 1976, under R 336.1201(1)(a).  
(G) Any change in ownership at a stationary source.  
(H) [Reserved]  
(I) The installation, operation, cessation, or removal of a temporary clean coal  
technology demonstration project, provided that the project complies with both of the  
following:  
(1) The state implementation plan.  
(2) Other requirements necessary to attain and maintain the national ambient air  
quality standard during the project and after it is terminated.  
(iv) This definition shall not apply with respect to a particular regulated new source  
review pollutant when the major stationary source is complying with the requirements of  
R 336.2907 for a plant wide applicability limit for that pollutant. Instead, the definition  
in R 336.2907(1)(h) shall apply.  
(v) For the purposes of applying the requirements of R 336.2902(8) to modifications  
at major stationary sources of nitrogen oxides located in ozone nonattainment areas or in  
ozone transport regions, whether or not subject to subpart 2, part D, title 1 of the clean air  
act, any significant net emissions increase of nitrogen oxides is considered significant for  
ozone.  
(vi) Any physical change in, or change in the method of operation of, a major  
stationary source of volatile organic compounds that results in any increase in emissions  
of volatile organic compounds from any discrete operation, emissions unit, or other  
pollutant emitting activity at the source shall be considered a significant net emissions  
increase and a major modification for ozone, if the major stationary source is located in  
an extreme ozone nonattainment area that is subject to subpart 2, part D, title 1 of the  
clean air act.  
(u) “Major stationary source” means all of the following:  
(i) Any of the following:  
(A) Any stationary source of air pollutants that emits or has the potential to emit 100  
tons per year or more of any regulated new source review pollutant, except that lower  
emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 of  
part D, title 1 of the clean air act, according to the following:  
(1) In any serious ozone nonattainment area, 50 tons per year of volatile organic  
compounds.  
(2) In an area within ozone transport region except for any severe or extreme ozone  
nonattainment area, 50 tons per year of volatile organic compounds.  
(3) In any severe ozone nonattainment area, 25 tons per year of volatile organic  
compounds.  
(4) In any extreme ozone nonattainment area, 10 tons per year of volatile organic  
compounds.  
(5) In any serious nonattainment area for carbon monoxide, where the department  
has determined that stationary sources contribute significantly to carbon monoxide levels  
in the area, 50 tons per year of carbon monoxide.  
(6) In any serious nonattainment area for PM-10, 70 tons per year of PM-10.  
(B) For the purposes of applying the requirements of R 336.2902(8) to stationary  
sources of nitrogen oxides located in an ozone nonattainment area or in an ozone  
transport region, any stationary source which emits, or has the potential to emit, 100 tons  
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per year or more of nitrogen oxide emissions, except that the following emission  
thresholds shall apply in areas subject to subpart 2 of part D, title 1 of the clean air act:  
(1) In any ozone nonattainment area classified as marginal or moderate, 100 tons per  
year or more of nitrogen oxides.  
(2) In any ozone nonattainment area classified as a transitional, submarginal, or  
incomplete or no data area, when such area is located in an ozone transport region, 100  
tons per year or more of nitrogen oxides.  
(3) In any area designated under section 107(d) of the clean air act as attainment or  
unclassifiable for ozone that is located in an ozone transport region, 100 tons per year or  
more of nitrogen oxides.  
(4) In any serious nonattainment area for ozone, 50 tons per year or more of nitrogen  
oxides.  
(5) In any severe nonattainment area for ozone, 25 tons per year or more of nitrogen  
oxides.  
(6) In any extreme nonattainment area for ozone, 10 tons per year or more of  
nitrogen oxides.  
(C) Any physical change that would occur at a stationary source not qualifying under  
R 336.2901(u)(i)(A) or (B) as a major stationary source, if the change would constitute a  
major stationary source by itself.  
(ii) A major stationary source that is major for volatile organic compounds shall be  
considered major for ozone.  
(iii) The fugitive emissions of a stationary source shall not be included in  
determining for any of the purposes of this paragraph whether it is a major stationary  
source, unless the source belongs to one of the following categories of stationary  
sources:  
(A) Coal cleaning plants, with thermal dryers.  
(B) Kraft pulp mills.  
(C) Portland cement plants.  
(D) Primary zinc smelters.  
(E) Iron and steel mills.  
(F) Primary aluminum ore reduction plants.  
(G) Primary copper smelters.  
(H) Municipal incinerators capable of charging more than 250 tons of refuse per day.  
(I) Hydrofluoric, sulfuric, or nitric acid plants.  
(J) Petroleum refineries.  
(K) Lime plants.  
(L) Phosphate rock processing plants.  
(M) Coke oven batteries.  
(N) Sulfur recovery plants.  
(O) Carbon black plants, furnace process.  
(P) Primary lead smelters.  
(Q) Fuel conversion plants.  
(R) Sintering plants.  
(S) Secondary metal production plants.  
(T) Chemical process plants. The term chemical process plant shall not include  
ethanol production facilities that produce ethanol by natural fermentation included in  
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North American Industrial Classification System codes 325193 or 312140.  
(U) Fossil-fuel boilers, or combination thereof, totaling more than 250 million British  
thermal units per hour heat input.  
(V) Petroleum storage and transfer units with a total storage capacity exceeding  
300,000 barrels.  
(W) Taconite ore processing plants.  
(X) Glass fiber processing plants.  
(Y) Charcoal production plants.  
(Z) Fossil fuel-fired steam electric plants of more than 250 million British thermal  
units per hour heat input.  
(AA) Any other stationary source category which, as of August 7, 1980, is being  
regulated under section 111 or 112 of the clean air act.  
(v) “Necessary preconstruction approvals or permits” mean a permit issued under  
R 336.1201(1)(a) that is required by R 336.2802 or R 336.2902.  
(w) “Net emissions increase” means all of the following:  
(i) With respect to any regulated new source review pollutant emitted by a major  
stationary source, the amount by which the sum of the following exceeds zero:  
(A) The increase in emissions from a particular physical change or change in the  
method of operation at a stationary source as calculated under R 336.2902(2).  
(B) Any other increases and decreases in actual emissions at the major stationary  
source that occur within the contemporaneous period and are otherwise creditable.  
(ii) The contemporaneous period must meet all of the following:  
(A) Begins on the date 5 years before construction on the particular change  
commences.  
(B) Ends on the date that the increase from the particular change occurs.  
(iii) An increase or decrease in actual emissions is creditable only if the department  
has not relied on it in issuing a permit under R 336.1201(1)(a) or R 336.1214a, which  
permit is in effect when the increase in actual emissions from the particular change  
occurs.  
(iv) The magnitude of a creditable, contemporaneous increase in actual emissions is  
determined by the amount that the allowable emissions following the increase exceed the  
emissions unit’s baseline actual emissions prior to the increase. This means allowable  
emissions and baseline actual emissions are determined from the date of the  
contemporaneous increase. Baseline actual emissions shall be determined as provided in  
the definition of baseline actual emissions, except that subdivision (b)(i)(C) and (b)(ii)(D)  
of this rule shall not apply.  
(v) A contemporaneous decrease in actual emissions is creditable only to the extent  
that all of the following occur:  
(A) The magnitude of a creditable contemporaneous decrease is determined by the  
lower of the following:  
(1) The amount by which the emission unit’s baseline actual emissions prior to the  
decrease exceed the level of allowable emissions following the decrease.  
(2) The amount by which the emission unit’s allowable emissions prior to the  
decrease exceed the level of allowable emissions following the decrease.  
(3) In determining the magnitude of a creditable contemporaneous decrease,  
allowable emissions and baseline actual emissions are determined from the date of the  
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contemporaneous decrease. Baseline actual emissions shall be determined as provided in  
the definition of baseline actual emissions except that subdivision (b)(i)(C) and (b)(ii)(D)  
of this rule shall not apply.  
(B) It is enforceable as a practical matter at and after the time that actual construction  
on the particular change begins.  
(C) The department has not relied on it in issuing any permit under R 336.1201(1)(a)  
or R 336.1214a.  
(D) It has approximately the same qualitative significance for public health and  
welfare as that attributed to the increase from the particular change.  
(vi) 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.  
(vii) The definition of actual emissions in R 336.1101(b) shall not apply for  
determining creditable increases and decreases after a change, instead the definitions of  
the terms “projected actual emissions” and “baseline actual emissions” shall be used.  
(x) “Nonattainment major new source review” or “NSR” program means the  
requirements of this rule, R 336.1220, or R 336.1221. A permit issued under any of these  
rules is a major new source review permit.  
(y) [Reserved]  
(z) “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 legally enforceable. Secondary  
emissions do not count in determining the potential to emit of a stationary source.  
(aa) “Predictive emissions monitoring system” or “PEMS” means all of the  
equipment necessary to monitor process and control device operational parameters  
and other information and calculate and record the mass emissions rate on a  
continuous basis.  
(bb) “Prevention of significant deterioration” or “PSD” permit means any permit  
that is issued under R 336.2802 or the prevention of significant deterioration of air  
quality regulations under 40 C.F.R. §52.21, adopted by reference in R 336.1902.  
(cc) “Process Unit” means any collection of structures or equipment, or both that  
processes, assembles, applies, blends, or otherwise uses material inputs to produce or  
store an intermediate or a completed product. A single stationary source may contain  
more than one process unit, and a process unit may contain more than one emissions unit.  
(i) Pollution control equipment is not part of the process unit, unless it serves a dual  
function as both process and control equipment. Administrative and warehousing  
facilities are not part of the process unit.  
(ii) For replacement cost purposes, components shared between two or more process  
units are proportionately allocated based on capacity.  
(iii)The following list identifies process units at specific categories of stationary  
sources.  
(A) For a steam electric generating facility, the process unit consists of those portions  
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of the plant that contribute directly to the production of electricity. For example, at a  
pulverized coal-fired facility, the process unit would generally be the combination of  
those systems from the coal receiving equipment through the emission stack (excluding  
post-combustion pollution controls), including the coal handling equipment, pulverizers  
or coal crushers, feedwater heaters, ash handling, boiler, burners, turbine-generator set,  
condenser, cooling tower, water treatment system, air preheaters, and operating control  
systems. Each separate generating unit is a separate process unit.  
(B) For a petroleum refinery, there are several categories of process units: those that  
separate or distill, or both petroleum feedstocks; those that change molecular structures;  
petroleum treating processes; auxiliary facilities, such as steam generators and hydrogen  
production units; and those that load, unload, blend or store intermediate or completed  
products.  
(C) For an incinerator, the process unit would consist of components from the feed pit  
or refuse pit to the stack, including conveyors, combustion devices, heat exchangers and  
steam generators, quench tanks, and fans.  
(dd) “Project” means a physical change in, or change in the method of operation of,  
an existing major stationary source.  
(ee) “Projected actual emissions” means the following:  
(i) The maximum annual rate, in tons per year, at which an existing emissions unit is  
projected to emit a regulated new source review pollutant in any one of the 5 12-month  
periods following the date the unit resumes regular operation after the project, or in any 1  
of the 10 12-month periods following that date, if the project involves increasing the  
emissions unit's design capacity or its potential to emit of that regulated new source  
review pollutant and full utilization of the unit would result in a significant emissions  
increase or a significant net emissions increase at the major stationary source.  
(ii) In determining the projected actual emissions before beginning actual  
construction, the owner or operator of the major stationary source shall do the following:  
(A) Consider all relevant information, including but not limited to, historical  
operational data, the company's own representations, the company's expected business  
activity, and the company's highest projections of business activity, the company's filings  
with the state or federal regulatory authorities, and compliance plans under the approved  
state implementation plan.  
(B) Include fugitive emissions to the extent quantifiable, and emissions associated  
with startups, shutdowns, and malfunctions.  
(C) Exclude, in calculating any increase in emissions that results from the particular  
project, that portion of the unit's emissions following the project that an existing unit  
could have accommodated during the consecutive 24-month period used to establish the  
baseline actual emissions of this rule and that are also unrelated to the particular project,  
including any increased utilization due to product demand growth.  
(D) Elect to use the emissions unit's potential to emit in tons per year instead of  
calculating projected actual emissions.  
(ff) “Regulated new source review pollutant” means any of the following:  
(i) Oxides of nitrogen or any volatile organic compounds.  
(ii) Any pollutant for which a national ambient air quality standard has been  
promulgated.  
(iii) Any pollutant that is a constituent or precursor of a general pollutant listed under  
Page 10  
paragraphs (i) or (ii) of this subdivision, provided that a constituent or precursor pollutant  
may only be regulated under new source review as part of regulation of the general  
pollutant.  
(gg) “Secondary emissions” means emissions that would occur as a result of the  
construction or operation of a major stationary source or major modification, but do not  
come from the major stationary source or major modification itself. For the purpose of  
this rule, secondary emissions shall be specific, well defined, quantifiable, and impact the  
same general area as the stationary source or modification which causes the secondary  
emissions. Secondary emissions include emissions from any off-site support facility that  
would not be constructed or increase its emissions except as a result of the construction  
or operation of the major stationary source or major modification. Secondary emissions  
do not include any emissions that come directly from a mobile source such as emissions  
from the tailpipe of a motor vehicle, from a train, or a vessel.  
(hh) “Significant” means all of the following:  
(i) “Significant” means, in reference to a net emissions increase or the potential of a  
source to emit any of the following pollutants at a rate of emissions that would equal or  
exceed any of the following pollutant emission rates:  
(A) Carbon monoxide: 100 tons per year.  
(B) Nitrogen oxides: 40 tons per year.  
(C) Sulfur dioxide: 40 tons per year.  
(D) Ozone: 40 tons per year of volatile organic compounds or of nitrogen oxides.  
(E) Lead: 0.6 tons per year.  
(F) PM-10: 15 tons per year of PM-10.  
(G) PM 2.5: 10 tons per year of PM 2.5; 40 tons per year of sulfur dioxide emissions;  
40 tons per year of nitrogen oxide emissions.  
(ii) Notwithstanding the significant emissions rate for ozone in R 336.2901(hh)  
(i)(D), significant means, in reference to an emissions increase or a net emissions  
increase, any increase in actual emissions of volatile organic compounds that would  
result from any physical change in, or change in the method of operation of, a major  
stationary source located in a serious or severe ozone nonattainment area that is subject to  
subpart 2, part D, title 1 of the clean air act, if such emissions increase of volatile organic  
compounds exceeds 25 tons per year.  
(iii) For the purposes of applying the requirements of R 336.2902(8) to modifications  
at major stationary sources of nitrogen oxides located in an ozone nonattainment area or  
in an ozone transport region, the significant emission rates and other requirements for  
volatile organic compounds in R 336.2901(hh)(i)(D), R 336.2901(hh)(ii) and R  
336.2901(hh)(v) shall apply to nitrogen oxides emissions.  
(iv) Notwithstanding the significant emissions rate for carbon monoxide in R  
336.2901(hh)(i)(A), significant means, in reference to an emissions increase or a net  
emissions increase, any increase in actual emissions of carbon monoxide that would  
result from any physical change in, or change in the method of operation of, a major  
stationary source in a serious nonattainment area for carbon monoxide if such increase  
equals or exceeds 50 tons per year, provided that the United States environmental  
protection agency has determined that the stationary sources contribute significantly to  
carbon monoxide levels in that area.  
(v) Notwithstanding the significant emissions rates for ozone in  
Page 11  
R 336.2901(hh)(i)(D) and R 336.2901(hh)(ii), any increase in actual emissions of  
volatile organic compounds from any emissions unit at a major stationary source of  
volatile organic compounds located in an extreme ozone nonattainment area that is  
subject to subpart 2, part D, title 1 of the clean air act shall be considered a significant net  
emissions increase.  
(ii) “Significant emissions increase” means, for a regulated new source review  
pollutant, an increase in emissions that is significant for that pollutant.  
(jj) “Stationary source” means any building, structure, facility, or installation which  
emits or may emit a regulated new source review pollutant.  
(kk) “Temporary clean coal technology demonstration project” means a clean coal  
technology demonstration project that is operated for a period of 5 years or less, and  
that complies with the state implementation plan and other requirements necessary to  
attain and maintain the national ambient air quality standards during the project and  
after it is terminated.  
History: 2008 AACS; 2011 AACS; 2012 AACS; 2019 AACS.  
Editor's Note: An obvious error in R 336.2901 was corrected at the request of the promulgating  
agency, pursuant to Section 56 of 1969 PA 306, as amended by 2000 PA 262, MCL 24.256. The rule  
containing the error was published in Michigan Register, 2019 MR 1. The memorandum requesting the  
correction was published in Michigan Register, 2019 MR 2.  
R 336.2901a Rescinded.  
History: 2008 AACS; 2019 AACS.  
R 336.2902 Applicability.  
Rule 1902. (1) This part applies to the construction of each new major stationary  
source or major modification that is both of the following:  
(a) Located in a nonattainment area.  
(b) Major for the pollutant for which the area is designated nonattainment.  
For areas designated as nonattainment for ozone, this part shall apply only to any  
new major stationary source or major modification that is major for volatile organic  
compounds or nitrogen oxides.  
(2) This part applies to the construction of new major sources and major  
modifications to existing major sources as follows:  
(a) Except as otherwise provided in subrule (3) of this rule, and consistent with the  
definition of major modification, a project is a major modification for a regulated new  
source review pollutant if it causes both of the following emissions increases:  
(i) A significant emissions increase.  
(ii) A significant net emissions increase. The project is not a major modification if it  
does not cause a significant emissions increase. If the project causes a significant  
emissions increase, then the project is a major modification only if it also results in a  
significant net emissions increase.  
Page 12  
(b) The procedure for calculating whether a significant emissions increase will occur  
depends upon the type of emissions units being modified. The procedure for calculating  
whether a significant net emissions increase will occur at the major stationary source is  
contained in the definition of net emissions increase. Regardless of any such  
preconstruction projections, a major modification results if the project causes a  
significant emissions increase and a significant net emissions increase.  
(c) The actual-to-projected-actual applicability test may be used for projects that only  
involve existing emissions units. A significant emissions increase of a regulated new  
source review pollutant is projected to occur if the sum of the difference between the  
projected actual emissions and the baseline actual emissions, for each existing emissions  
unit, equals or exceeds the significant amount for that pollutant.  
(d) The actual-to-potential test may be used for projects that involve construction of  
new emissions units or modification of existing emissions units. A significant emissions  
increase of a regulated new source review pollutant is projected to occur if the sum of the  
difference between the potential to emit from each new or modified emissions unit  
following completion of the project and the baseline actual emissions of these units  
before the project equals or exceeds the significant amount for that pollutant.  
(e) The hybrid test may be used for projects that involve multiple types of emissions  
units. A significant emissions increase of a regulated new source review pollutant is  
projected to occur if the sum of the emissions increases for each emissions unit, using the  
appropriate methods specified above in this subrule as applicable with respect to each  
emissions unit, for each type of emissions unit equals or exceeds the significant amount  
for that pollutant.  
(3) Any major stationary source for a plant wide applicability limit for a regulated  
new source review pollutant shall comply with R 336.2907.  
(4) The provisions of this rule 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:  
(a) Coal cleaning plants, with thermal dryers.  
(b) Kraft pulp mills.  
(c) Portland cement plants.  
(d) Primary zinc smelters.  
(e) Iron and steel mills.  
(f) Primary aluminum ore reduction plants.  
(g) Primary copper smelters.  
(h) Municipal incinerators capable of charging more than 250 tons of refuse per day.  
(i) Hydrofluoric, sulfuric, or citric acid plants.  
(j) Petroleum refineries.  
(k) Lime plants.  
(l) Phosphate rock processing plants.  
(m) Coke oven batteries.  
(n) Sulfur recovery plants.  
(o) Carbon black plants, furnace process.  
(p) Primary lead smelters.  
(q) Fuel conversion plants.  
Page 13  
(r) Sintering plants.  
(s) Secondary metal production plants.  
(t) Chemical process plants.  
(u) Fossil-fuel boilers, or combination thereof, totaling more than 250 million British  
thermal units per hour heat input.  
(v) Petroleum storage and transfer units with a total storage capacity exceeding  
300,000 barrels.  
(w) Taconite ore processing plants.  
(x) Glass fiber processing plants.  
(y) Charcoal production plants.  
(z) Fossil fuel-fired steam electric plants of more than 250 million British thermal  
units per hour heat input.  
(aa) Any other stationary source category which, as of August 7, 1980, is regulated  
under section 111 or 112 of the clean air act.  
(5) The following additional construction and permitting requirements apply:  
(a) Approval to construct shall not relieve any owner or operator of the responsibility  
to comply fully with any other applicable requirements and any other requirements under  
local, state, or federal law.  
(b) 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 enforcement  
limitation that 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 R 336.2908 shall apply to the source or modification as though  
construction had not yet commenced on the source or modification.  
(6) The following provisions apply to projects at existing emissions units at a major  
stationary source that is subject to either prevention of significant deterioration of air  
quality regulations or new source review for major sources in nonattainment areas  
regulations in circumstances where there is a reasonable possibility that a project that is  
not a part of a major modification may result in a significant emissions increase and the  
owner or operator elects to use the method in R 336.2901(dd) or R 336.2801(ll) for  
calculating projected actual emissions:  
(a) Before beginning actual construction of the project, the owner or operator shall  
document and maintain a record of the following information:  
(i) A description of the project.  
(ii) Identification of the emissions units whose emissions of a regulated new source  
review pollutant may be affected by the project.  
(iii) A description of the applicability test used to determine that the project is not a  
major modification for any regulated new source review pollutant, including the baseline  
actual emissions, the projected actual emissions, the amount of emissions excluded under  
R 336.2901(dd)(ii)(C) and an explanation for why such amount was excluded, and any  
netting calculations, if applicable.  
(b) If the emissions unit is an existing electric utility steam generating unit, before  
beginning actual construction, the owner or operator shall provide a copy of the  
information required by subdivision (a) of this subrule to the department. This  
subdivision does not require the owner or operator of such a unit to obtain any  
determination from the department before beginning actual construction.  
Page 14  
(c) The owner or operator shall monitor the emissions of any regulated new source  
review pollutant that could increase as a result of the project and that is emitted by any  
emissions units identified under subdivision (a)(ii) of this subrule and calculate and  
maintain a record of the annual emissions, in tons per year on a calendar year basis, for a  
period of 5 years following resumption of regular operations after the change, or for a  
period of 10 years following resumption of regular operations after the change if the  
project increases the design capacity or potential to emit of that regulated new source  
review pollutant at the emissions unit.  
(d) If the unit is an existing electric utility steam generating unit, then the owner or  
operator shall submit a report to the department within 60 days after the end of each year  
during which records shall be generated under subdivision (c) of this subrule setting out  
the unit's annual emissions during the year that preceded submission of the report.  
(e) If the unit is an existing unit other than an electric utility steam generating unit,  
then the owner or operator shall submit a report to the department if the annual emissions,  
in tons per year, from the project identified pursuant to this subrule, exceed the baseline  
actual emissions by a significant amount for that regulated new source review pollutant,  
and if such emissions differ from the preconstruction projection. The report shall be  
submitted to the department within 60 days after the end of such year. The report shall  
contain all of the following information:  
(i) The name, address and telephone number of the major stationary source.  
(ii) The annual emissions as calculated under subdivision (c) of this subrule.  
(iii) Any other information that the owner or operator wishes to include in the report,  
for example, an explanation as to why the emissions differ from the preconstruction  
projection.  
(f) A reasonable possibility that a project may result in a significant emissions  
increase occurs when the project is subject to R 336.1201(1)(a) and is not exempted from  
the requirement to obtain a permit to install by R 336.1278 to R 336.1290. If the owner  
or operator determines that the project is exempted by R 336.1278 to R 336.1290, then  
the owner or operator may proceed with the project without obtaining a permit to install.  
If an owner or operator develops calculations for the project pursuant to R 336.2901(dd)  
or R 336.2801(ll), the calculations may be used for the purpose of demonstrating  
compliance with R 336.1278a(1)(c).  
(7) The owner or operator of the source shall make the information required to be  
documented and maintained under this rule available for review upon a request for  
inspection by the department, or the general public under section 5516(2) of the act, MCL  
324.5516(2).  
(8) The requirements of this part that apply to major stationary sources and major  
modifications of volatile organic compounds shall also apply to nitrogen oxides  
emissions from major stationary sources and major modifications of nitrogen oxides in an  
ozone transport region or in any ozone nonattainment area, except in ozone  
nonattainment areas or portions of an ozone transport region where the United States  
environmental protection agency has granted a NOx waiver applying the standards set  
forth under section 182(f) of the clean air act and the waiver continues to apply.  
History: 2008 AACS; 2019 AACS.  
Page 15  
R
336.2903 Additional permit requirements for sources impacting  
nonattainment areas.  
Rule 1903. (1) No new major stationary source or major modification shall be  
constructed in an area designated as attainment or unclassifiable for any national ambient  
air quality standard under section 107 of the clean air act, without first applying for a  
permit to install under R 336.1201(1)(a). The department shall not approve any permit to  
install that would cause or contribute to a violation of any national ambient air quality  
standard.  
(2) A major source or major modification shall be considered to cause or contribute  
to a violation of a national ambient air quality standard when the source or modification  
would, at a minimum, exceed the following significance levels in table 191 at any locality  
that does not or would not meet the applicable national standard:  
TABLE 191  
Significance Levels  
Averaging Time  
Pollutant  
Annual  
24  
hours  
8 hours  
3
hours  
1 hour  
Sulfur dioxide  
PM-10  
PM 2.5  
Nitrogen dioxide  
Carbon Monoxide  
1.0 ug/m3  
1.0 ug/m3  
0.3 ug/m3  
1.0 ug/m3  
5 ug/m3  
5 ug/m3  
1.2 ug/m3  
25 ug/m3  
500 ug/m3  
2000 ug/m3  
(3) The owner of a major stationary source or major modification subject to this rule  
may reduce the impact of its emissions upon air quality by obtaining sufficient emission  
reductions to, at a minimum, compensate for its adverse ambient impact where the major  
source or major modification would otherwise cause or contribute to a violation of any  
national ambient air quality standard. In the absence of such emission reductions, the  
department shall deny the proposed construction.  
(4) This rule shall not apply to a major stationary source or major modification with  
respect to a particular pollutant if the owner or operator demonstrates that, as to that  
pollutant, the source or modification is located in a nonattainment area.  
History: 2008 AACS; 2012 AACS.  
R 336.2907 Actuals plant wide applicability limits or PALs.  
Rule 1907. (1) The following definitions apply to the use of actuals PALs. If a term  
is not defined in these paragraphs, then it shall have the meaning given in R 336.2901:  
(a) "Actuals PAL for a major stationary source" means a PAL based on the baseline  
actual emissions of all emissions units at the source that emit or have the potential to emit  
the PAL pollutant.  
(b) "Allowable emissions" means allowable emissions as defined in R 336.1101(k),  
except this definition is modified in the following manner:  
Page 16  
(i) 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.  
(ii) An emissions unit's potential to emit shall be determined using the definition in R  
336.2901(z), except that the words "or enforceable as a practical matter" shall be added  
after "legally enforceable."  
(c) "Small emissions unit" means an emissions unit that emits or has the potential to  
emit the PAL pollutant in an amount less than the significant level for that PAL pollutant.  
(d) "Major emissions unit" means either of the following:  
(i) Any emissions unit that emits or has the potential to emit 100 tons per year or  
more of the PAL pollutant in an attainment area.  
(ii) Any emissions unit that emits or has the potential to emit the PAL pollutant in an  
amount that is equal to or greater than the major source threshold for the PAL pollutant as  
defined by the clean air act for nonattainment areas. For example, in accordance with the  
definition of major stationary source in section 182(c) of the clean air act, an emissions  
unit is a major emissions unit for volatile organic compounds 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 volatile organic compounds per year.  
(e) "Plant wide applicability limitation" or "PAL" means an emission limitation,  
expressed in tons per year, for a pollutant at a major stationary source that is enforceable  
as a practical matter and established source-wide in accordance with this rule.  
(f) "PAL effective date" generally means the date of issuance of the PAL permit.  
However, the PAL effective date for an increased PAL is the date any emissions unit that  
is part of the PAL major modification becomes operational and begins to emit the PAL  
pollutant.  
(g) "PAL effective period" means the period beginning with the PAL effective date  
and ending 10 years later.  
(h) "PAL major modification" means, notwithstanding R 336.2901(s) and (v), the  
definitions for major modification and net emissions increase, any physical change in or  
change in the method of operation of the PAL source that causes it to emit the PAL  
pollutant at a level equal to or greater than the PAL.  
(i) "PAL permit" means the permit to install that establishes a PAL for a major  
stationary source.  
(j) "PAL pollutant" means the pollutant for which a PAL is established at a major  
stationary source.  
(k) "Significant emissions unit" means an emissions unit that emits or has the  
potential to emit a PAL pollutant in an amount that is equal to or greater than the  
significant level for that PAL pollutant, but less than the amount that would qualify the  
unit as a major emissions unit.  
(2) The following requirements pertain to applicability:  
(a) The department may approve the use of an actuals PAL for any existing major  
stationary source if the PAL meets the requirements of this rule. "PAL" means "actuals  
PAL" in this rule.  
(b) The department shall not allow an actuals PAL for volatile organic compounds or  
nitrogen oxides for any major stationary source located in an extreme ozone  
nonattainment area.  
Page 17  
(c) For 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 of this rule, and complies with the PAL permit, all of the following shall  
apply:  
(i) Is not a major modification for the PAL pollutant.  
(ii) Does not have to be approved through the permitting requirements of this rule.  
(iii) Is not subject to the provisions in R 336.2902(5)(b), restrictions on relaxing  
enforceable emission limitations that the major stationary source used to avoid  
applicability of the nonattainment major new source review program.  
(d) Except as provided under subdivision (c)(iii) of this subrule, a major stationary  
source shall continue to comply with all applicable federal, state, or local requirements,  
emission limitations, and work practice requirements that were established before the  
effective date of the PAL.  
(3) 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:  
(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, state, or local applicable requirements, emission  
limitations, or work practices apply to each unit.  
(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 startup, shutdown, and malfunction.  
(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 subrule (13)(a)  
of this rule.  
(4) The following general requirements apply for establishing PALs:  
(a) The department may establish a PAL at a major stationary source, provided that,  
at a minimum, all the following requirements are met:  
(i) The PAL shall impose an annual emission limitation in tons per year, which 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 (a 12-month total, rolled monthly). 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.  
(ii) The PAL shall be established in a permit to install that meets the public  
participation requirements in subrule (5) of this rule.  
(iii) The PAL permit to install shall contain all the requirements of subrule (7) of this  
rule.  
(iv) The PAL shall include fugitive emissions, to the extent quantifiable, from all  
emissions units that emit or have the potential to emit the PAL pollutant at the major  
stationary source.  
Page 18  
(v) Each PAL shall regulate emissions of only one pollutant.  
(vi) Each PAL shall have a PAL effective period of 10 years.  
(vii) The owner or operator of the major stationary source with a PAL shall comply  
with the monitoring, recordkeeping, and reporting requirements provided in subrules (12)  
to (14) of this rule for each emissions unit under the PAL through the PAL effective  
period.  
(b) At no time, during or after the PAL effective period, are emissions reductions of a  
PAL pollutant, which occur during the PAL effective period, creditable as decreases for  
purposes of offsets under R 336.2908(5) unless the level of the PAL is reduced by the  
amount of such emissions reductions and such reductions would be creditable in the  
absence of the PAL.  
(5) PALs for existing major stationary sources shall be established, renewed, or  
increased through a permit to install issued under R 336.1201(1)(a). 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. The department shall address all  
material comments before taking final action on the permit.  
(6) The following apply to setting the 10-year actuals PAL level.  
(a) Except as provided in subdivision (b) of this subrule, the actuals 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. When establishing the actuals PAL  
level, 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.  
Emissions associated with units that were permanently shut down after this 24-month  
period shall be subtracted from the PAL level. 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 requirements before  
issuance of the PAL permit. For instance, if the source owner or operator will be  
required to reduce emissions from industrial boilers in half from baseline emissions of 60  
parts per million nitrogen oxides to a new rule limit of 30 parts per million, then 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 such unit.  
(b) For newly constructed units, which do not include modifications to existing units,  
on which actual construction began after the 24-month period, instead of adding the  
baseline actual emissions as specified in subdivision (a) of this subrule, the emissions  
shall be added to the PAL level in an amount equal to the potential to emit of the units.  
(7) The PAL permit shall contain, at a minimum, all of the following information:  
(a) The PAL pollutant and the applicable source-wide emission limitation in tons per  
year.  
(b) The PAL permit effective date and the expiration date of the PAL (PAL effective  
period).  
(c) Specification in the PAL permit that if a major stationary source owner or  
operator applies to renew a PAL under subrule (10) of this rule before the end of the PAL  
effective period, then the PAL shall not expire at the end of the PAL effective period.  
The PAL shall remain in effect until a revised PAL permit is issued by the department.  
Page 19  
(d) A requirement that emission calculations for compliance purposes include  
emissions from startups, shutdowns, and malfunctions.  
(e) A requirement that, once the PAL expires, the major stationary source is subject  
to subrule (9) of this rule.  
(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 as required by subrule (13)(a)  
of this rule.  
(g) A requirement that the major stationary source owner or operator monitor all  
emissions units under subrule (12) of this rule.  
(h) A requirement to retain on-site the records required under subrule (13) of this  
rule. The records may be retained in an electronic format.  
(i) A requirement to submit the reports required under subrule (14) of this rule by the  
required deadlines.  
(j) Any other requirements that the department determines necessary to implement  
and enforce the PAL.  
(8) The following shall apply to the PAL effective period and reopening of the PAL  
permit:  
(a) The department shall specify a PAL effective period of 10 years.  
(b) The following shall apply to reopening of the PAL permit:  
(i) During the PAL effective period, the department shall reopen the PAL permit to  
do any of the following:  
(A) Correct typographical or calculation errors made in setting the PAL or reflect a  
more accurate determination of emissions used to establish the PAL.  
(B) Reduce the PAL if the owner or operator of the major stationary source creates  
creditable emissions reductions for use as offsets under R 336.2908(5)(b) through (h).  
(C) Revise the PAL to reflect an increase in the PAL as provided under subrule (11)  
of this rule.  
(ii) The department may reopen the PAL permit for any of the following:  
(A) Reduce the PAL to reflect newly applicable federal requirements with  
compliance dates after the PAL effective date.  
(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  
under the state implementation plan.  
(C) Reduce the PAL if the department determines that a reduction is necessary to  
avoid causing or contributing to a national ambient air quality standard or PSD increment  
violation, or to 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.  
(iii) Except for a permit reopening for the correction of typographical or calculation  
errors that do not increase the PAL level, all other reopenings shall be carried out in  
accordance with the public participation requirements of subrule (5) of this rule.  
(9) Any PAL, which is not renewed in accordance with the procedures in subrule  
(10) of this rule, shall expire at the end of the PAL effective period, and the following  
requirements of this paragraph shall apply:  
Page 20  
(a) Each emissions unit, or each group of emissions units, that existed under the PAL  
shall comply with an allowable emission limitation under a revised permit established  
according to the following procedures:  
(i) Within the time frame specified for PAL renewals in subrule (10)(b) of this rule,  
the major stationary source shall submit a proposed allowable emission limitation for  
each emissions unit, or each group of emissions units, if such a 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 an applicable requirement that  
became effective during the PAL effective period, as required under subrule (10)(e) of  
this rule, then the distribution shall be made as if the PAL had been adjusted.  
(ii) The department shall determine 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.  
(b) 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 other  
than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable  
emission limitation.  
(c) 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.  
(d) Any physical change or change in the method of operation at the major stationary  
source shall be subject to the nonattainment major new source review requirements if the  
change meets the definition of major modification in R 336.2901(s).  
(e) The major stationary source owner or operator shall continue to comply with all  
state, federal, or local applicable requirements that may have applied either during the  
PAL effective period or before the PAL effective period, except for those emission  
limitations that were eliminated by the PAL under subrule (2)(c)(iii) of this rule.  
(10) The following shall apply to renewal of a PAL:  
(a) The department shall follow the procedures specified in subrule (5) of this rule in  
approving any request to renew a PAL for a major stationary source, 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 such public review, any person may propose a  
PAL level for the source for consideration by the department.  
(b) A major stationary source 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 before, but not earlier than 18 months from, the date of permit  
expiration. This deadline for application submittal is to ensure that the permit will not  
expire before the permit is renewed. If the owner or operator of a major stationary source  
submits a complete application to renew the PAL within this time period, then the PAL  
shall continue to be effective until the revised permit with the renewed PAL is issued.  
(c) The application to renew a PAL permit shall contain all of the following  
information:  
(i) The information required in subrule (3) of this rule.  
Page 21  
(ii) A proposed PAL level.  
(iii) The sum of the potential to emit of all emissions units under the PAL with  
supporting documentation.  
(iv) Any other information the owner or operator wishes the department to consider  
in determining the appropriate level for renewing the PAL.  
(d) In determining whether and how to adjust the PAL, the department shall consider  
either of the options outlined in paragraphs (i) and (ii) of this subdivision. The  
adjustment shall comply with paragraph (iii) of this subdivision.  
(i) If the emissions level calculated in accordance with subrule (6) of this rule is  
equal to or greater than 80% of the PAL level, the department may renew the PAL at the  
same level without considering the factors in paragraph (ii) of this subdivision.  
(ii) 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.  
(iii) Notwithstanding paragraphs (i) and (ii) of this subdivision, both of the following  
shall apply:  
(A) If the potential to emit of the major stationary source is less than the PAL, then  
the department shall adjust the PAL to a level not greater than the potential to emit of the  
source.  
(B) The department shall not approve a renewed PAL level higher than the current  
PAL, unless the major stationary source has complied with subrule (11) of this rule.  
(e) If the compliance date for a state, federal, or local requirement that applies to the  
PAL source occurs during the PAL effective period, and if the department has not already  
adjusted for such requirement, then the PAL shall be adjusted at the time of PAL permit  
renewal or renewable operating permit renewal, whichever occurs first.  
(11) The following shall apply to increasing a PAL during the PAL effective period:  
(a) The department may increase a PAL emission limitation only if the major  
stationary source complies with the following provisions:  
(i) 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.  
(ii) 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 such a 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.  
Page 22  
(iii) The owner or operator obtains a major new source review permit for all  
emissions units identified in paragraph (i) of this subdivision, 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 new source review program process (for example, LAER), even  
though they have also become subject to the PAL or continue to be subject to the PAL.  
(iv) The PAL permit shall require that the increased PAL level shall 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.  
(b) 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 subdivision (a)(ii) of this subrule, plus the sum of  
the baseline actual emissions of the small emissions units.  
(c) The PAL permit shall be revised to reflect the increased PAL level under the  
public notice requirements of subrule (5) of this rule.  
(12) The following shall apply to monitoring requirements for PALs:  
(a) The following general requirements shall apply:  
(i) Each PAL permit shall contain enforceable requirements for the monitoring  
system that accurately determines plant wide emissions of the PAL pollutant in terms of  
mass per unit of time. Any monitoring system authorized for use in the PAL permit shall  
be based on sound science and meet generally acceptable scientific procedures for data  
quality and manipulation. Additionally, the information generated by the system shall  
meet minimum legal requirements for admissibility in a judicial proceeding to enforce the  
PAL permit.  
(ii) The PAL monitoring system shall employ one or more of the 4 general  
monitoring approaches meeting the minimum requirements set forth in subdivision (b) of  
this subrule and shall be approved by the department.  
(iii) Notwithstanding paragraph (ii) of this subdivision, an owner or operator may  
also employ an alternative monitoring approach that meets paragraph (i) of this  
subdivision if approved by the department.  
(iv) Failure to use a monitoring system that meets the requirements of this rule  
renders the PAL invalid.  
(b) Minimum performance requirements for approved monitoring approaches. The  
following are acceptable general monitoring approaches when conducted in accordance  
with the minimum requirements in subdivisions (c) to (i) of this subrule:  
(i) Mass balance calculations for activities using coatings or solvents.  
(ii) CEMS.  
(iii) CPMS or PEMS.  
(iv) Emission factors.  
(c) An owner or operator using mass balance calculations to monitor PAL pollutant  
emissions from activities using coating or solvents shall meet all of the following  
requirements:  
(i) Provide a demonstrated means of validating the published content of the PAL  
pollutant that is contained in or created by all materials used in or at the emissions unit.  
Page 23  
(ii) Assume that the emissions unit emits all of the PAL pollutant that is contained in  
or created by any raw material or fuel used in or at the emissions unit, if it cannot  
otherwise be accounted for in the process.  
(iii) Where the vendor of a material or fuel, which is used in or at the emissions unit,  
publishes a range of pollutant content from such material, then the owner or operator  
shall use the highest value of the range to calculate the PAL pollutant emissions unless  
the department determines there is site-specific data or a site-specific monitoring program  
to support another content within the range.  
(d) An owner or operator using CEMS to monitor PAL pollutant emissions shall  
meet both of the following requirements:  
(i) CEMS shall comply with applicable performance specifications found in 40  
C.F.R. part 60, appendix B, adopted by reference in R 336.1902.  
(ii) CEMS shall sample, analyze, and record data at least every 15 minutes while the  
emissions unit is operating.  
(e) An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions  
shall meet both of the following requirements:  
(i) The CPMS or the PEMS shall be based on current site-specific data demonstrating  
a correlation between the monitored parameters and the PAL pollutant emissions across  
the range of operation of the emissions unit.  
(ii) Each CPMS or PEMS shall sample, analyze, and record data at least every 15  
minutes, or at another less frequent interval approved by the department, while the  
emissions unit is operating.  
(f) An owner or operator using emission factors to monitor PAL pollutant emissions  
shall meet all of the following requirements:  
(i) All emission factors shall be adjusted, if appropriate, to account for the degree of  
uncertainty or limitations in the factors' development.  
(ii) The emissions unit shall operate within the designated range of use for the  
emission factor, if applicable.  
(iii) If technically practicable, the owner or operator of a significant emissions unit  
that relies on an emission factor to calculate PAL pollutant emissions shall conduct  
validation testing to determine a site-specific emission factor within 6 months of PAL  
permit issuance, unless the department determines that testing is not required.  
(g) A source owner or operator shall record and report maximum potential emissions  
without considering enforceable emission limitations or operational restrictions for an  
emissions unit during any period of time that there is no monitoring data, unless another  
method for determining emissions during such periods is specified in the PAL permit.  
(h) Notwithstanding the requirements in subdivision (c) to (g) of this subrule, if an  
owner or operator of an emissions unit cannot demonstrate a correlation between the  
monitored parameters and the PAL pollutant emissions rate at all operating points of the  
emissions unit, then the department shall, at the time of permit issuance do either of the  
following:  
(i) Establish default values for determining compliance with the PAL based on the  
highest potential emissions reasonably estimated at such operating points.  
(ii) Determine that operation of the emissions unit during operating conditions when  
there is no correlation between monitored parameters and the PAL pollutant emissions is  
a violation of the PAL.  
Page 24  
(i) All data used to establish the PAL pollutant must be re-validated through  
performance testing or other scientifically valid means approved by the department.  
Testing shall occur at least once every 5 years after issuance of the PAL.  
(13) All of the following recordkeeping requirements shall apply:  
(a) The PAL permit shall require an owner or operator to retain a copy of all records  
necessary to determine compliance with this rule and of the PAL, including a  
determination of each emissions unit's 12-month rolling total emissions, for 5 years from  
the date of the record.  
(b) The PAL permit shall require an owner or operator to retain a copy of all of the  
following records for the duration of the PAL effective period plus 5 years:  
(i) A copy of the PAL permit application and any applications for revisions to the  
PAL.  
(ii) Each annual certification of compliance pursuant to renewable operating permit  
and the data relied on in certifying the compliance.  
(14) The owner or operator shall submit semiannual monitoring reports and prompt  
deviation reports to the department in accordance with the source's renewable operating  
permit. The reports shall meet all of the following requirements:  
(a) The semiannual report shall be submitted to the department within 30 days of the  
end of each reporting period. This report shall contain all of the following information:  
(i) The identification of owner and operator and the permit number.  
(ii) Total annual emissions, tons per year, based on a 12-month rolling total for each  
month in the reporting period recorded under subrule (13)(a) of this rule.  
(iii) All data relied upon, including, but not limited to, any quality assurance or  
quality control data, in calculating the monthly and annual PAL pollutant emissions.  
(iv) A list of any emissions units modified or added to the major stationary source  
during the preceding 6-month period.  
(v) The number, duration, and cause of any deviations or monitoring malfunctions,  
other than the time associated with zero and span calibration checks, and any corrective  
action taken.  
(vi) A notification of a shutdown of any monitoring system, whether the shutdown  
was permanent or temporary, the reason for the shutdown, the anticipated date that the  
monitoring system will be fully operational or replaced with another monitoring system,  
whether the emissions unit monitored by the monitoring system continued to operate, and  
the calculation of the emissions of the pollutant or the number determined by method  
included in the permit, as provided by subrule (12)(g) of this rule.  
(vii) A signed statement by the responsible official, as defined by the applicable  
renewable operating permit, certifying the truth, accuracy, and completeness of the  
information provided in the report.  
(b) The major stationary source owner or operator shall promptly submit reports of  
any deviations or exceedance of the PAL requirements, including periods where no  
monitoring is available. A report submitted under R 336.1213(3)(c)(ii) shall satisfy this  
reporting requirement. The deviation reports shall be submitted within the time limits  
prescribed by the source's renewable operating permit. The reports shall contain all of  
the following information:  
(i) The identification of owner and operator and the permit number.  
(ii) The PAL requirement that experienced the deviation or that was exceeded.  
Page 25  
(iii) Emissions resulting from the deviation or the exceedance.  
(iv) A signed statement by the responsible official, as defined by the source's  
renewable operating permit, certifying the truth, accuracy, and completeness of the  
information provided in the report.  
(c) The owner or operator shall submit to the department the results of any re-  
validation test or method within 3 months after completion of the test or method.  
History: 2008 AACS; 2019 AACS.  
R 336.2908 Conditions for approval of a major new source review permit in a  
nonattainment area.  
Rule 1908. (1) The department may only issue a permit approving the construction  
of a new major stationary source or major modification in a nonattainment area if the  
department has determined that the owner or operator of the major stationary source or  
major modification will comply with all of the provisions of this rule.  
(2) The owner or operator of the proposed major stationary source or major  
modification shall provide an analysis of alternative sites, sizes, production processes,  
and environmental control techniques for the proposed major stationary source or major  
modification which demonstrates that the benefits of the proposed major stationary  
source or major modification significantly outweigh the environmental and social costs  
imposed as a result of its location, construction, or modification.  
(3) The major stationary source or major modification shall comply with the lowest  
achievable emissions rate for each regulated new source review pollutant for which the  
area is designated as nonattainment.  
(4) All stationary sources which have a potential to emit 100 or more tons per year of  
any air contaminant regulated under the clean air act, which are located in the state, and  
which are owned or controlled by the owner, operator, or an entity controlling, controlled  
by, or under common control with, the owner or operator of the proposed major  
stationary source or major modification shall be in compliance with all applicable local,  
state, and federal air quality regulations or and shall be in compliance with a legally  
enforceable permit condition or order of the department specifying a plan and timetable  
for compliance.  
(5) Before the start-up of the new major stationary source or major modification, an  
emission reduction offset for each major nonattainment air contaminant shall be provided  
consistent with the following provisions:  
(a) The baseline for determining credit for emissions reductions is the emissions limit  
under the state implementation plan in effect at the time the application to construct is  
filed, except that the offset baseline shall be the actual emissions of the source from  
which offset credit is obtained where either of the following occurs:  
(i) The demonstration of reasonable further progress and attainment of ambient air  
quality standards is based upon the actual emissions of sources located within the  
nonattainment area.  
(ii) The state implementation plan does not contain an emissions limitation for that  
source or source category.  
(b) The following requirements apply to emissions offset credits:  
Page 26  
(i) Where the allowable emissions are greater emissions than the potential to emit of  
the source, emissions offset credit shall be allowed only for control below this potential.  
(ii) For an existing fuel combustion source, credit shall be based on the source’s  
allowable emissions for the type of fuel being burned at the time the application to  
construct is filed. If the existing source commits to switch to a cleaner fuel at some  
future date, then emissions offset credit based on the allowable, or actual, emissions for  
the fuels involved is not acceptable, unless the permit is conditioned to require the use of  
a specified alternative control measure which would achieve the same degree of  
emissions reduction should the source switch back to a dirtier fuel at some later date.  
The de