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, and for

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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,

including a visible emissions standard, based on the maximum degree of reduction for each

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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 standard industrial classification codes

see http://www.census.gov/epcd/naics02/.

(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.

(j) “Construction” means any physical change or change in the method of operation,

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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 standard,

including uses of flares during startup, shutdown, or malfunction permitted under such a

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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 established after

December 21, 1976, under R 336.1201(1)(a).

(G) Any change in ownership at a stationary source.

(H) [Reserved]

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(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 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

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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 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.

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(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

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

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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 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

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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

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

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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

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

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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.

(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

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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.

(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.

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(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.

(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

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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.

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:

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TABLE 191

Significance Levels

Averaging Time

Pollutant

Sulfur dioxide

PM-10

PM 2.5

Nitrogen dioxide

Carbon Monoxide

Annual

1.0 ug/m³

0.3 ug/m³

1.0 ug/m³

24 hours

5 ug/m³

8 hours

3 hours

1 hour

25 ug/m³

5 ug/m³

1.2 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:

(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

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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.

(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.

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(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.

(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.

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(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.

(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:

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(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:

(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

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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.

(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.

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(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.

(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

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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.

(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:

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(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.

(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.

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(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.

(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

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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:

(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 department shall ensure that

adequate long-term supplies of the new fuel are available before granting emissions offset

credit for fuel switches.

(c) An emission reduction credit shall not be creditable as an emission offset unless it

meets the following requirements:

(i) Emissions reductions that have been achieved by shutting down an existing emission

unit or curtailing production or operating hours may be generally credited for offsets only

if they meet all of the following requirements:

(A) The reductions are surplus, permanent, quantifiable and federally enforceable.

(B) The shutdown or curtailment occurred after the last day of the base year for the SIP

planning process. The department may choose to consider a prior shutdown or curtailment

to have occurred after the last day of the base year if the projected emissions inventory

used to develop the attainment demonstration explicitly includes emissions from such

previously shutdown or curtailed emission units. However, credit shall not be given for

shutdowns that occurred before August 7, 1977.

(ii) Emissions reductions that are achieved by shutting down an existing emissions unit or

curtailing production or operating hours and that do not meet the requirements of R

336.2908(5)(c)(i)(A) and (B) may be generally credited only if they meet either of the

following:

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(A) The shutdown or curtailment occurred on or after the date the construction permit

application is filed.

(B) The applicant can establish that the proposed new emissions unit is a replacement for

the shutdown or curtailed emissions unit, and the emissions reductions are surplus,

permanent, quantifiable and federally enforceable.

(d) Emissions credit shall not be allowed for replacing 1 hydrocarbon compound with

another of lesser reactivity, except for those compounds listed in table 1 of the United

States environmental protection agency's "Recommended Policy on Control of Volatile

Organic Compounds," 42 FR 35314, adopted by reference in R 336.1902.

(e) All emission reductions claimed as offset credit shall be federally enforceable.

(f) Offsets shall be obtained from the same nonattainment area as the proposed major

source or major modification, except another nonattainment area may be used if both of

the following conditions are met:

(i) The other area has an equal or higher nonattainment classification than the area in which

the proposed source is located.

(ii) Nonattainment air contaminant emissions from the other area contribute to a violation

of a national ambient air quality standard in the nonattainment area in which the proposed

major source or major modification would be located.

(g) Credit for an emissions reduction may be claimed to the extent that the reviewing

authority has not relied on it in issuing any permit required by R 336.1220 or R 336.2902

and the department has not relied on it in demonstrating attainment or reasonable further

progress.

(h) The total tonnage of increased emissions, in tons per year, resulting from a major

modification that must be offset 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. Unless specified otherwise in this rule, the offset ratio

for each nonattainment air pollutant that will be emitted in significant amounts from a new

major source or major modification located in a nonattainment area that is subject to

subpart 1, part D, title 1of the clean air act shall be at least 1:1.

(i) The provisions of this subrule do not apply to emissions resulting from proposed major

sources or major modifications to the extent that the emissions are temporary and will not

prevent reasonable further progress towards attainment of any applicable standard.

Examples of temporary emissions include emissions from all of the following:

(i) Pilot plants.

(ii) Portable facilities which will be relocated outside the nonattainment area within 18

months.

(iii) The construction phase of a new major stationary source or major modification.

(6) For facilities meeting the emissions offset requirements of R 336.2908(5) for ozone

nonattainment areas that are subject to subpart 2, part D, title 1 of the clean air act, the

facility must meet the following requirements:

(a) The ratio of total actual emissions reductions of Volatile Organic Compound (VOC)

or Oxides of Nitrogen (NO_x) to the emissions increase of VOC or NO_xshall be as follows:

(i) In any marginal nonattainment area for ozone, the ratio shall be 1.1:1.

(ii) In any moderate nonattainment area for ozone, the ratio shall be 1.15:1.

(iii) In any serious nonattainment area for ozone, the ratio shall be 1.2:1.

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(iv) In any severe nonattainment area for ozone, the ratio shall be 1.3:1, except that the

ratio may be 1.2:1 if all existing major sources in the severe nonattainment area use BACT

for the control of VOC.

(v) In any extreme nonattainment area for ozone, the ratio shall be 1.5:1, except that the

ratio may be 1.2:1 if all existing major sources in the extreme nonattainment area use

BACT for the control of VOC.

(b) Notwithstanding the requirements of R 336.2908(6)(a) for meeting the requirements

of R 336.2908(5), the ratio of total actual emissions reductions of VOC to the emissions

increase of VOC shall be 1.15:1 for all areas within an ozone transport region that is subject

to subpart 2, part D, title 1 of the clean air act except for serious, severe, and extreme ozone

nonattainment areas that are subject to subpart 2, part D, title 1 of the clean air act.

(c) For each facility meeting the emissions offset requirements of R 336.2908(5) for ozone

nonattainment areas that are subject to subpart 1, part D, title 1 of the clean air act but are

not subject to subpart 2, part D, title 1 of the clean air act, including 8-hour ozone

nonattainment areas subject to 40 C.F.R. 51.902(b), adopted by reference in R 336.1902,

the ratio of total actual emissions reductions of VOC to the emissions increase of VOC

shall be 1:1.

(7) The requirements of this section that apply to major stationary sources and major

modifications of PM-10 and PM 2.5 shall also apply to major stationary sources and major

modifications of PM-10 and PM 2.5 precursors, except when the department determines

that such sources do not contribute significantly to PM-10 and PM 2.5 levels that exceed

the PM-10 and PM 2.5 ambient standards in the area.

History: 2008 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.

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