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Title38 - New Source Review

Section 38-001 General Applicability
No owner or operator shall begin actual construction of a major source or major modification of an air contaminant source without having received an Air Contaminant Discharge Permit from the Authority, in accordance with Title 34, and having satisfied Sections 38-005 through 38-050.

No owner or operator shall begin actual construction of a non-major source or non-major modification of an air contaminant source without having received an Air Contaminant Discharge Permit from the Authority under Title 34. Such owner or operator is subject to other Authority rules including: application of Highest and Best Practicable Treatment and Control (Title 32) Standards for Hazardous Air Pollutants (Title 43); and Standards of Performance for New Stationary Sources (Title 46).

Section 38-005 Definitions
The following definitions are relevant to this title. Additional general definitions can be found in Title 12.
  1. "Actual Emissions" means the mass rate of emissions of a pollutant from an emission source.
    A. In general, actual emissions as of the baseline period shall equal the average rate at which the source actually emitted the pollutant during the baseline period and which is representative of normal source operation. Actual emissions shall be calculated using the source's actual operating hours, production rates and types of materials processed, stored, or combusted during the selected time period.
    B. The Authority may presume that existing source-specific permitted mass emissions are equivalent to the actual emissions of the source, if they are within ten percent (10%) of the calculated actual emissions.
    C. For any newly-permitted emission source which had not yet begun normal operation in the baseline period, actual emissions shall equal the potential to emit of the source.
  2. "Air Contaminant Source" means, for the purposes of this title, any building, structure, or facility, or combination thereof, which emits or is capable of emitting air contaminants to the atmosphere, and is located on one or more contiguous or adjacent properties, and is owned or operated by the same person or by persons under common control. This includes all of the pollutant emitting activities which belong to the same industrial grouping, or major group (i.e., which have the same two-digit code) as described in EPA's Standard Industrial Classification (SIC) manual (U.S. Office of Management and Budget, 1987). This definition does not include fuel-burning equipment used to heat one- or two-family dwellings or internal combustion engines used in motor vehicles, aircraft, and marine vessels enroute to or from a source.
  3. "Baseline concentration" means that ambient concentration level for a particular regulated pollutant which existed in an area during the calendar year 1978. If no ambient air quality data is available in an area, the baseline concentration for any pollutant may be estimated using modeling based on actual emissions for the calendar year 1978. Actual emissions increases or decreases occurring before January 1, 1978 will be included in the baseline concentration.
  4. "Baseline Period" means either calendar years 1977 or 1978. The Authority shall allow the use of a prior time period upon a determination that it is more representative of normal source operation.
  5. "Best Available Control Technology (BACT)" means an emission limitation (including a visible emission standard) based on the maximum degree of reduction of each air contaminant subject to regulation under the Clean Air Act which would be emitted from any proposed major source or major modification which, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, 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 air contaminant. In no event shall the application of BACT result in emissions of any air contaminant which would exceed the emissions allowed by any applicable new source performance standard or any standard for hazardous air pollutants. If an emission limitation is not feasible, a design, equipment, work practice, or operational standard, or combination thereof, may be required. Such standard shall, to the degree possible, set forth the emission reduction achievable and shall provide for compliance by prescribing appropriate permit conditions.
  6. "Lowest Achievable Emission Rate (LAER)" means that rate of emissions which reflects:
    A. The most stringent emission limitation which is contained in the implementation plan of any state for such class or category of source, unless the owner or operator of the proposed source demonstrates that such limitations are not achievable, or
    B. The most stringent emission limitation which is achieved in practice by such class or category of source, whichever is more stringent.
  In no event shall the application of this term allow a proposed new or modified source to emit any air contaminant in excess of the amount allowable under applicable new source performance standards or standards for hazardous air pollutants.
  7. "Major Modification" means any physical change or change of operation of a source that would result in a net significant emission rate increase (as defined in this section) for any pollutant subject to regulation under the Clean Air Act. This criteria also applies to any pollutants not previously emitted by the source. Calculations of net emission increases must take into account all accumulated increases and decreases (not including mandated decreases) in actual emissions occurring at the source since January 1, 1978, or since the time of the last major source or major modification approval issued for the source pursuant to the rules for that pollutant, whichever time is more recent. If accumulation of emission increases results in a net significant emission rate increase, the modifications causing such increases become subject to the major modification requirements of this title, including the retrofit of required controls. For the purposes of this title, fugitive emissions shall be included in the calculation of emission rates of all air contaminants. Fugitive emissions are subject to the same control requirements and analyses required for emissions from identifiable stacks or vents. Secondary emissions shall not be included in calculations of potential emissions which are made to determine if a proposed source or modification is major. Once a source or modification is identified as being major, secondary emissions must be added to the primary emissions and become subject to these rules.
  8. "Major Source" means a stationary source which emits, or has the potential to emit, any pollutant regulated under the Clean Air Act at a Significant Emission Rate (as defined in this section). For the purposes of this title, fugitive emissions shall be included in the calculation of emission rates of all air contaminants. Fugitive emissions are subject to the same control requirements and analyses required for emissions from identifiable stacks or vents. Secondary emissions shall not be included in calculations of potential emissions which are made to determine if a proposed source or modification is major. Once a source or modification is identified as being major, secondary emissions must be added to the primary emissions and become subject to these rules.
  9. "Modification of an Air Contaminant Source" means any physical change or change in operation of a source which would result in a non-permitted increase in the air contaminant emissions from that source.
  10. "Prevention of Significant Deterioration Increments" means maximum allowable ambient air quality impacts over baseline concentrations in areas designated Class I, II or III, as follows:
   
Micrograms Per Cubic Meter
   
  Class I Class II Class III
Particulate Matter      

TSP Annual Geometric Mean
TSP 24-Hour Maximum

5
10
19
37
37
75
Sulfur Dioxide      

Annual Arithmatic Mean
24-Hour Maximum
3-Hour maximum

2
5
25
20
91
512
40
182
700
    (*For these time periods, the applicable maximum allowable increase may be exceeded during one such period per year at any one location.)
  11. "Significant Air Quality Impact" means an ambient air quality impact which is equal to or greater than:
 
Pollutant Averaging Time
Pollutant
Annual
24-Hour
8-Hour
3-Hour
1-Hour
SO2
1.0 µ/m3
5 µ/m3
25 µ/m3
TSP
or
PM10
0.2 µ/m3
25 µ/m3
---
---
---
>NO2
1.0 µ/m3
---
---
---
---
CO
---
---
25 µ/m3
---
25 µ/m3
  For sources of volatile organic compounds (VOC), a major source or major modification will be deemed to have a significant impact if it is located within thirty (30) kilometers of an ozone nonattainment area and is capable of impacting the nonattainment area.
  12. "Significant Emission Rate" means emission rates equal to or greater than the following for air pollutants regulated under the Clean Air Act:
   
Pollutant
Significant Emission
Rate
(1) Carbon Monoxide 100.00 tons/year
(2) Particulate Matter 25.00 tons/year
(3) Nitrogen Oxides 40.00 tons/year
(4) Pm10 15.00 tons/year
(5) Sulfur Dioxide 40.00 tons/year
(6) VOCs 40.00 tons/year
(7) Lead 0.60 tons/year
(8) Mercury 0.10 tons/year
(9) Berylium 0.0004 tons/year
(10) Asbestos 0.007 tons/year
(11) Vinyl Chloride 1.00 tons/year
(12) Fluorides 3.00 tons/year
(13) Sulfuric acid Mist 7.00 tons/year
(14) Hydrogen Sulfide 10.00 tons/year
(15) Total Reduced Sulfur
(including hydrogen sulfide)
10.00 tons/year
(16) Reduced Sulfur Compounds
(including hydrogen sulfide)
10.00 tons/year
    For pollutants not listed above, the Authority shall determine the rate that constitutes a significant emission rate.
Any emissions increase less than these rates associated with a new source or modification which would construct within ten (10) kilometers of a Class I area and would have an impact on such area equal to or greater than 1 ug/m3 (24-hour average) shall be deemed to be emitting at a significant emission rate.

Section 38-010 General Requirements for Major Sources and Major Modifications
  1. Prior to construction of new major sources or major modifications, the owner or operator must obtain from the Director a permit to discharge air contaminants (Title 34). Permits for major sources are issued only after review and approval of the NSR application according to the requirements of this title.
  2. The owner or operator of a proposed new major source or major modification shall submit a New Source Review (NSR) application on forms provided by the Authority, together with all information necessary to perform any analysis or make any determination required under these rules. Such information shall include, but not be limited to:
    A. A description of the nature, location, design capacity, and typical operating schedule of the source or modification, including specifications and drawings showing its design and plant layout;
    B. An estimate of the amount and type of each air contaminant emitted by the source in terms of hourly, daily, seasonal, and yearly rates, showing the calculation procedure;
    C. A visibility impact analysis;
    D. A detailed schedule for construction of the source or modification;
    E. A detailed description of the system of continuous emission reduction which is planned for the source or modification, and any other information necessary to determine that best available control technology (BACT) or lowest achievable emission rate (LAER) technology, whichever is applicable, would be applied;
    F. To the extent required by these rules, an analysis of the air quality impact of the source or modification, including meteorological and topographical data, specific details of models used, and other information necessary to estimate air quality impacts; and
    G. To the extent required by these rules, an analysis of the air quality impacts, and the nature and extent of all commercial, residential, industrial, and other growth which has occurred since January 1, 1978, in the area the source or modification would affect.
  3. Any owner or operator who constructs or operates a source or modification not in accordance with the NSR application submitted pursuant to this section or with the terms of any permit, or any owner or operator of a source or modification subject to this section who commences construction after the effective date of these regulations without applying for and receiving an air contaminant discharge permit, shall be subject to appropriate enforcement action.
  4. Approval of the NSR application shall become invalid if construction is not commenced within eighteen (18) months after receipt of such approval, if construction is discontinued for a period of eighteen (18) months or more, or if construction is not completed within eighteen (18) months of the scheduled time. The Authority may extend the eighteen (18) month period upon satisfactory showing that an extension is justified. This provision does not apply to the time period between construction of the approved phases of a phased construction project; each phase must commence construction within eighteen (18) months of its respective projected and approved commencement date.
  5. Compliance with an approved NSR application shall not relieve any owner or operator of the responsibility to comply fully with applicable provisions of the State Implementation Plan and any other requirements under local, state, or federal law.
  6. Within thirty (30) days after receipt of a NSR application, or any addition to such application, the Authority shall advise the applicant of any deficiency in the application or in the information submitted. The date of the receipt of a complete application shall be, for the purpose of this section, the date on which the Authority received all required information.
  7. Notwithstanding the requirements of Title 34 of these rules, but as expeditiously as possible and at least within six (6) months after receipt of a complete application, the Authority shall make a final determination on the application. This involves performing the following actions in a timely manner:
    A. Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved.
    B. Make available for a thirty (30) day period in at least one location a copy of the NSR application, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. p>C. Notify the public, by advertisement in a newspaper of general circulation in the area in which the proposed source or modification would be constructed, of the application, the preliminary determina- tion, and the opportunity for a public hearing and for written public comment.
    D. Send a copy of the notice of opportunity for public comment to the applicant and to officials and agencies having jurisdiction over the location where the proposed construction would occur as follows: The chief executives of the city and county where the source or modifi- cation would be located, any comprehensive regional land use planning agency, any state, federal land manager, or Indian governing body whose lands may be affected by emissions from the source or modification, the Oregon Department of Environmental Quality, and the U. S. Environmental Protection Agency.
    E. Upon determination that significant interest exists, provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source or modification, alternatives to the source or modification, the control technology required, and other appropriate considerations. Any hearing shall be conducted pursuant to Title 14, Section 120.
    F. Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any public hearing(s) in making a final decision on the approvability of the NSR application. No later than ten (10) working days after the close of the public comment period, the applicant may submit a written response to any comments submitted by the public. The Authority shall consider the applicant's response in making a final decision. The Authority shall make all comments available for public inspection in the same location where the Authority made available preconstruction information relating to the proposed source or modification.
    G. Make a final determination whether construction should be approved, approved with conditions, or disapproved pursuant to this section.
    H. Notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Authority made available preconstruction information and public comments relating to the source or modification.

Section 38-015 Additional Requirements for Major Sources or Major Modifications Located in Nonattainment Areas
  1. Proposed new major sources and major modifications which would emit a nonattainment pollutant within a designated nonattainment area shall meet the following requirements
    A.The owner or operator of the proposed major source or major modification must demonstrate that the source or modification will comply with the lowest achievable emission rate (LAER) for each nonattainment pollutant which is emitted at or above the significant emission rate (38-005-12). In the case of a major modification, the requirement for LAER shall apply only to each new or modified emission unit which increases emissions.For phased construction projects, the determination of LAER shall be reviewed at the latest reasonable time prior to commencement of construction of each independent phase.
    B. The owner or operator of the proposed major source or major modification must demonstrate that all major sources owned or operated by such person (or by an entity controlling, controlled by, or under common control of such person) in the state are in compliance or on a schedule for compliance, with all applicable emission limitations and standards under the Clean Air Act.
    C. The owner or operator of the proposed major source or major modification must provide emission reductions ("offsets") as specified by these Rules. (See Sections 38-030 and 035)
    D. For cases in which emission reductions or offsets are required, the applicant must demonstrate that a net air quality benefit will be achieved in the affected area as described in Section 38-035 (Offset requirements for Demonstration of Net Air Quality Benefit) and that the reductions are consistent with reasonable further progress toward attainment of the air quality standards.
    E. The owner or operator of a proposed new major source or major modification shall conduct an alternative analysis for each nonattainment pollutant at or above the significant emission rate (38-005-12), except that no analysis shall be required for Total Suspended Particulate (TSP). (NOTE: Analysis for PM10 is, however, required.) The analysis must include an evaluation of alternative sites, sizes, production processes, and environmental control techniques for such proposed source or modification which demonstrates that benefits of the proposed source or modification significantly outweigh the environmental and social costs imposed as a result of its location, construction or modification.

Section 38-020 Additional Requirements for Major Sources or Major Modifications in Attainment or Unclassified Areas (Prevention of Significant Deterioration)
  1. New major sources or major modifications locating in areas designated attainment or unclassifiable shall meet the following requirements:
    A. The owner or operator of the proposed major source or major modification shall apply best available control technology (BACT) for each pollutant which is emitted at a significant emission rate (see Section 38-005). In the case of a major modification, the requirement for BACT shall apply only to each new or modified emission unit which increases emissions. For phased construction projects, the determination of BACT shall be reviewed at the latest reasonable time prior to commencement of construction of each independent phase.
    B. The owner or operator of the proposed major source or major modification shall demonstrate that the potential to emit any pollutant at a significant emission rate, in conjunction with all other applicable emissions increases and decreases (including secondary emissions), would not cause or contribute to air quality levels in excess of:
   

(1) Any state or national ambient air quality standards, or
(2) Any applicable increment established by the prevention of significant deterioration requirements (see Section 38-005-10). (Note that the area classifications are found in OAR 340-31-120 through 340-31-130.) or
(3) An impact on a designated nonattainment area greater than the significant air quality impact levels (see Section 38-005).

  2. Sources or modifications with the potential to emit at rates greater than the significant emission rate but less than one hundred (100) tons/year, and which are greater than fifty (50) kilometers from a nonattainment area are not required to assess their impact on the nonattainment area.
  3. If the owner or operator of a proposed major source or major modification wishes to provide emission offsets such that a net air quality benefit as defined in Section 38-035 is provided, the Authority may consider the requirements of Section 38-020-1.B. to have been met.
  4. All estimates of ambient concentrations required under these Rules shall be based on the applicable air quality models, data bases, and other requirements specified in the "Guidelines on Air Quality Models (Revised)", EPA 450/2-780-027R U. S. EPA, September 1986, including Supplement A, July, 1987. Where an air quality impact model specified in the "Guidelines on Air Quality Models (Revised), including Supplement A," is inappropriate, the model may be modified or another model substituted. Such a change must be subject to notice and opportunity for public comment and must receive approval of the Authority and the Environmental Protection Agency. Methods like those outlined in the "Interim Procedures for Evaluating Air Quality Models (Revised)", U. S. EPA 1984, should be used to determine the comparability of air quality models.
  5. The owner or operator of a proposed major source or major modification shall submit with the application, subject to approval of the Authority, an analysis of ambient air quality in the area of the proposed project. This analysis shall be conducted for each pollutant potentially emitted at a significant emission rate by the proposed source or modification. As necessary to establish ambient air quality levels, the analysis shall include continuous air quality monitoring data for any pollutant potentially emitted by the source or modification except for non-methane hydrocarbons. Such data shall relate to, and shall have been gathered over the year preceding receipt of the complete application, unless the owner or operator demonstrates that such data gathered over a portion or portions of that year or another representative year would be adequate to determine that the source or modification would not cause or contribute to a violation of an ambient air quality standard or any applicable increment. A possible exemption to the monitoring requirement is outlined in paragraph "B," below.
    A. Air quality monitoring which is conducted pursuant to this requirement shall be conducted in accordance with 40 CFR 58 Appendix B., "Quality Assurance Requirements for Prevention of Significant Deterioration (PSD) Air Monitoring" and with other methods on file with the Authority.
    B. The Authority may exempt a proposed major source or major modification from monitoring for a specific pollutant if the owner or operator demonstrates that the air quality impact from the emissions increase would be less than the amounts listed below or that the concentrations of the pollutant in the area that the source or modification would impact are less than these amounts:
   
(1) Carbon monoxide--575 µ/m3, 8-hour average;
(2) Nitrogen dioxide--14 µ/m3, annual average;
(3) Particulate Matter--10 µ/m3, 24-hour average for TSP, 10 µ/m3, 24-hour average for PM10;
(4) Sulfur dioxide--13µ/m3, 24-hour average;
(5) Ozone--any net increase of 100 tons/year or more of volatile organic compounds from a source of modification subject to PSD is required to perform an ambient impact analysis, including the gathering of ambient air quality data;
(6) Lead--0.1µ/m3, 24-hour average;
(7) Mercury--0.25 µ/m3, 24-hour average;
(8) Beryllium--0.0005 µ/m3, 24-hour average;
(9) Fluorides--0.25 µ/m3, 24-hour average;
(10) Vinyl Chloride--15 µ/m3, 24-hour average;
(11) Total reduced sulfur--10 µ/m3, 1-hour average;
(12) Hydrogen Sulfide--0.04 µ/m3, 1-hour average;
(13) Reduced sulfur compounds--10 µ/m3, 1-hour average;
    C. When monitoring is required by 5.A, above, PM 10 preconstruction monitoring must use reference sampling methods. At least four months of data must be collected which the Authority judges to include the season(s) of highest PM10 levels.
    D. The owner or operator of a proposed major source or major modification shall, after construction has been completed, conduct such ambient air quality monitoring as the Authority may require as a permit condition to establish the effect which emissions of a pollutant (other than nonmethane hydrocarbons) may have, or is having, on air quality in any area which such emissions would affect.
  6.The owner or operator of a proposed major source or major modification shall provide an analysis of the impairment to visibility, soils and vegetation that would occur as a result of the source or modification and general commercial, residential, industrial and other growth associated with the source or modification. The owner or operator may be exempted from providing an analysis of the impact on vegetation having no significant commercial or recreational value.
  7. The owner or operator shall provide an analysis of the air quality concentration projected for the area as a result of general commercial, residential, industrial and other growth associated with the major source or modification.
  8. Where a proposed major source or major modification impacts or may impact a Class I area, the Authority shall provide notice to the Environmental Protection Agency and to the appropriate Federal Land Manager of the receipt of such permit application and of any preliminary and final actions taken with regard to such application. The Federal Land Manager shall be provided an opportunity in accordance with Section 38-010 to present a demonstration that the emissions from the proposed source or modification would have an adverse impact on the air-quality-related values (including visibility) of any federal mandatory Class I lands, notwithstanding that the change in air quality resulting from emissions from such source or modification would not cause or contribute to concentrations which would exceed the maximum allowable increment for a Class I area. If the Authority concurs with such demonstration, the permit shall not be issued.

Section 38-025 Exemptions for Major Sources and Major Modifications
  1. Temporary emission sources, which would be in operation at a site for less than two years, such as pilot plants and portable facilities, and emissions resulting from the construction phase of a new source or modification, must comply with Section 38-015-1.A and 1.B, or Section 38-020-1.A, whichever is applicable, but are exempt from the remaining requirements of Section 38-015 and Section 38-020, provided that the source or modification would impact no Class I area or no area where an applicable increment is known to be violated.
  2. Proposed increases in hours of operation or production rates, which would cause emission increases above the levels allowed in an air contaminant discharge permit and would not involve a physical change in the source, may be exempted from the requirement of Section 38-020-1.A (Best Available Control Technology) provided that the increases cause no exceedances of an increment or standard and that the net impact on a nonattainment area is less than the significant air quality impact levels. This exemption shall not be allowed for new sources or modifications that received permits to construct after January 1, 1978.

Section 38-030 Baseline for Determining Credit for Offsets
The baseline for determining credit for emission offsets shall be the Plant Site Emission Limit as established in these Rules or, in the absence of a Plant Site Emission Limit, the actual emission rate for the source providing the offsets. Sources in violation of air quality emission limitations may not supply offsets from those emissions which are or were in excess of permitted emission rates. Emission reductions which are required pursuant to any local, state or federal regulation shall not be used for offsets. Offsets, including offsets from mobile and area source categories, must be quantifiable and enforceable before the Air Contaminant Discharge Permit is issued and must be demonstrated to remain in effect throughout the life of the proposed source or modification. Approval of offsets shall not exempt the new major source or major modification from Best Achievable Control Technology (BACT), Lowest Achievable Emission Rate (LAER), New source Performance Standards (NSPS), and National Emission Standards for Hazardous Air Pollutants (NESHAPS), where required.

Section 38-035 Offset Requirements of Major Sources and Major Modifications for Demonstration of Net Air Quality Benefit
  1. A demonstration must be provided showing that the proposed offsets will improve air quality in the same geographical area affected by the new source or modification. This demonstration may require that air quality modeling be conducted according to the procedures specified in the "Guidelines on Air Quality Models (Revised)," including Supplement A. Offsets for volatile organic compounds or nitrogen oxides shall be within the same nonattainment area as the proposed source. Offsets for total suspended particulate, PM10, sulfur dioxide, carbon monoxide, nitrogen dioxide, and other pollutants shall be within the area of significant air quality impact.
  2. For new major sources or major modifications, the emission offsets within a designated nonattainment area must provide reductions which are equivalent or greater than the proposed increases. The offsets must be appropriate in terms of short-term, seasonal, and yearly time periods to mitigate the impacts of the proposed emissions. For new sources or modifications locating outside of a designated nonattainment area, which have a significant air quality impact on the nonattainment areas, the emissions offsets must be sufficient to reduce impacts to levels below the significant air quality impact level within the nonattainment area. New major sources or major modifications which emit volatile organic compounds or nitrogen oxides and are located outside of but within thirty (30) kilometers of an ozone nonattainment area shall provide reductions which are equivalent or greater than the proposed emission increases. An exemption will be granted for those sources located outside the nonattainment area if the applicant demonstrates that the proposed emissions will not impact the nonattainment area. New major sources or major modifications locating within an ozone nonattainment area which emit volatile organic compounds or nitrogen oxides shall provide emission reductions at a 1.1 to 1.0 ratio (i.e., demonstrate a 10 percent net reduction).
  3. The emission reductions must be of the same type of pollutant as the emissions from the new source or modification. Sources of PM10 must be offset with particulate in the same size range. In areas where atmospheric reactions contribute to pollutant levels, offsets may be provided from precursor pollutants if a net air quality benefit can be shown.
  4. The emission reductions must be contemporaneous; that is, the reductions must take effect prior to the time of startup but not more than two years prior to the submittal of a complete NSR application for the new source or modification. This time limitation may be extended through banking as provided for in Section 38-040 (Emission Reduction Credit Banking). In the case of replacement facilities, the Authority may allow simultaneous operation of the old and new facilities during the startup period of the new facility, provided that net emissions are not increased during that time period.

Section 38-040 Emission Reduction Credit Banking
  1. The owner or operator of a source of air pollution who wishes to reduce emissions by implementing more stringent controls than required by a permit, or an applicable regulation, may bank such emission reductions. Cities, counties or other local jurisdictions may participate in the emissions bank in the same manner as a private firm.
  2. Emission reduction credit banking shall be subject to the following conditions:
    A. To be eligible for banking, emission reduction credits must be in terms of actual emission decreases resulting from permanent continuous control of existing sources.The baseline for determining emission reduction credits shall be the actual emissions of the source or the Plant Site Emission Limit established pursuant to these Rules.
    B. Emission reductions may be banked for a specified period not to exceed ten (10) years unless extended by the Authority, after which time such reductions will revert to the Authority for use in attainment and maintenance of air quality standards.
    C. Emission reductions which are required pursuant to an adopted rule shall not be banked.
    D. Permanent source shutdowns or curtailments other than those used within two years contemporaneous offsets, as provided in Section 38-035-4, are not eligible for banking by the owner or operator but will be banked by the Authority for use in attaining and maintaining standards. The two (2) year limitation for contemporaneous offsets shall not be applicable to those shutdowns or curtailments which are to be used as internal offsets within a plant as part of a specific plan. Such a plan for use of internal offsets shall be submitted to the Authority and receive written approval within one (1) year of the permanent shutdown or curtailment. A permanent source shutdown or curtailment shall be considered to have occurred when a permit is modified, revoked or expires without renewal, pursuant to the criteria established in Title 34 .
    E. The amount of banked emission reduction credits shall be discounted without compensation to the holder for a particular source category when new regulations requiring emission reductions are adopted by the Authority. The amount of discounting of banked emission reduction credits shall be calculated on the same basis as the reductions required for existing sources which are subject to the new regulation. Banked emission reduction credits shall be subject to the same rules, procedures, and limitations as permitted emissions.
  3. Emission reductions must be in the amount of five (5) tons/year or more to be creditable for banking.
  4. Requests for emission reduction credit banking must be submitted in writing to the Authority and must contain the following documentation:
    A. A detailed description of the processes controlled;
    B. Emission calculations showing the types and amounts of actual emissions reduced;
    C. The date or dates of such reductions;
    D. Identification of the probable uses to which the banked reductions are to be applied;
    E. Procedure by which such emission reductions can be rendered permanent and enforceable.
  5. Requests for emission reduction credit banking shall be submitted to the Authority prior to or within the year following the actual emissions reduction. The Authority shall approve or deny requests for emission reduction credit banking and, in the case of approvals, shall issue a letter to the owner or operator defining the terms of such banking. The Authority shall take steps to insure the permanence and enforceability of the banked emission reductions by including appropriate conditions in air contaminant discharge permits or by appropriate revision of the State Implementation Plan.
  6. The Authority shall provide for the allocation of the banked emission reduction credits, in accordance with the uses specified by the holder of the emission reduction credits. When emission reduction credits are transferred, the Authority must be notified in writing. Any use of emission reduction credits must be compatible with local comprehensive plans, statewide planning goals, state laws and these Rules.
  7. Operators of existing sources requesting emission reduction credit for banking shall at the time of application pay the following fees:
    A. Request for credit for any air contaminant of five (5) tons/year, but less than the rate equal to the significant emissions rate as defined in Section 38-005:
   
(1) A filing fee of $75;
(2) An application processing fee of $250;
(3) An annual recordkeeping fee of $100.
    B. Request for credit for any air contaminant of a rate equal to or greater than a significant emission rate as defined in Section 38-005:
(1) A filing fee of $75;
(2) An application processing fee of $500;
(3) An annual recordkeeping fee of $100.

Section 38-045 Visibility Impact in Class I Areas
New major sources or major modifications located in Attainment, Unclassified or Nonattainment Areas shall meet the following visibility impact requirements.
  1. Visibility Impact Analysis
    A. The owner or operator of a proposed major source or major modification shall demonstrate that the potential to emit any pollutant at a significant emission rate (38-005) in conjunction with all other applicable emission increases or decreases (including secondary emissions) permitted since January 1, 1984, shall not cause or contribute to significant impairment of visibility within any Class I area.
    B. The owner or operator of a proposed major source or major modification shall submit all information necessary to perform any analysis or demonstration required by these rules pursuant to Section 38-010.
  2. All estimates of visibility impacts required under this rule shall be based on the models on file with the Authority. Equivalent models may be substituted if approved by the Authority. The Authority will perform visibility modeling of all sources with potential emissions less than 100 tons/year of any individual pollutant and locating closer than 30 Km to a Class I area, if requested.
  3. The results of the modeling must be sent to the affected land managers and the Authority. The land managers may, within 30 days following receipt of the source's visibility impact analysis, determine whether or not impairment of visibility in a Class I area would result. The Authority will consider the comments of the Federal Land Manager in its consideration of whether significant impairment will result. Should the Authority determine that impairment would result, a permit for the proposed source will not be issued.
  4. Visibility Monitoring
    A. The owner or operator of a proposed major source or major modification which emits more than 250 tons per year of TSP, SO2 or NO 2 shall submit with the application, subject to approval of the Authority, an analysis of visibility in or immediately adjacent to the Class I area impacted by the proposed project. As necessary to establish visibility conditions within the Class I area, the analysis shall include a collection of continuous visibility monitoring data for all pollutants emitted by the source that could potentially impact Class I area visibility. Such data shall relate to and shall have been gathered over the year preceding receipt of the complete application, unless the owner or operator demonstrates that data gathered over a shorter portion of the year for another representative year, would be adequate to determine that the source or major modification would not cause or contribute to significant impairment. Where applicable, the owner or operator may demonstrate that existing visibility monitoring data may be suitable. Pursuant to the requirements of these rules, the owner or operator of the source shall submit, for the approval of the Authority, a preconstruction visibility monitoring plan.
    B. The owner or operator of a proposed major source or major modification shall, after construction has been completed, conduct such visibility monitoring as the Authority may require as a permit condition to establish the effect which emissions of pollutant may have, or is having, on visibility conditions within the Class I area being impacted.
  5. The owner or operator of a proposed major source or major modification subject to 38-020(6) shall provide an analysis of the impact to visibility that would occur as a result of the source or modification and general commercial, residential, industrial, and other growth associated with the source or major modification.
  6. Notification of NSR Application
    A. Where a proposed major source or modification impacts or may impact visibility within a Class I area, the Authority shall provide written notice to the Environmental Protection Agency and to the appropriate Federal Land Manager within 30 days of the receipt of such permit application. Such notification shall include a copy of all information relevant to the NSR application, including analysis of anticipated impacts on Class I area visibility.
    B. Where the Authority receives advance notification of a NSR application of a source that may affect Class I area visibility, the Authority will notify all affected Federal Land Managers within 30 days of such advance notice.
    C. The Authority will, during its review of source impacts on Class I area visibility pursuant to this rule, consider any analysis performed by the Federal Land Manager that is provided within 30 days of notification required by these rules. If the Authority disagrees with the Federal Land Manager's demonstration, the Authority will include a discussion of the disagreement in the Notice of Public Hearing.
    D. The Federal Land Manager shall be provided an opportunity in accordance with 38-010 to present a demonstration that the emissions from the proposed source or modification would have an adverse impact on visibility within any federal mandatory Class I lands, notwithstanding that the change in air quality resulting from emissions from such source or modification would not cause or contribute to concentrations which would exceed the maximum allowable increment for a Class I area. If the Authority concurs with such demonstration, the construction approval shall not be granted.

Section 38-050 Stack Height and Dispersion Techniques
  1. Title 40, Code of Federal Regulation, Parts 51.100(ff) through (kk), 51.118(a) and (b), and 51.164, as amended on November 7, 1986 in the Federal Register (51 FR 40656), is by this reference adopted and incorporated herein, concerning stack heights and dispersion techniques.
  2. In general, the rule prohibits the use of excessive stack height and certain dispersion techniques when calculating compliance with ambient air quality standards. The rule does not forbid the construction and actual use of excessively tall stacks, nor use of dispersion techniques; it only forbids their use in compliance calculations.
  3. The rule has the following general applicability. With respect to the use of excessive stack height, stacks 65 meters high or higher, constructed after December 31, 1970, and major modifications to existing plants after December 31, 1970 with stacks 65 meters high or higher which were constructed before that date, are subject to this rule, with the exception that certain stacks at federally-owned, coal-fired steam electric generating units constructed under a contract awarded before February 8, 1974, are exempt. With respect to the use of dispersion techniques, any technique implemented after December 31, 1970, at any plant, is subject to this rule. However, if the plant's total allowable emissions of sulfur dioxide are less than 5,000 tons per year, then certain dispersion techniques to increase final exhaust gas plume rise are permitted to be used when calculating compliance with ambient air quality standards for sulfur dioxide.
    A. Where found in the federal rule, the term "reviewing agency" means the Lane Regional Air Protection Agency (LRAPA), the Oregon Department of Environmental Quality (DEQ), or the U. S. Environmental Protection Agency (EPA), as applicable.
    B. Where found in the federal rule, the term "authority administering the State Implementation Plan" means LRAPA, DEQ or EPA.
    C. The "procedures" referred to in 40 CFR 51.164 are the New Source Review procedures at LRAPA (Title 38), and the review procedures for new, or modifications to existing, minor sources at LRAPA (Title 34 and Section 38-045).
    D. Where "the State" or "State, or local control agency" is referred to in 40 CFR 51.118(a), it means DEQ or LRAPA.
    E. Where 40 CFR 51.100 refers to the Prevention of Significant Deterioration program and cites 40 CFR 51.166, it means the EPA-approved new source review rules of LRAPA (see 40 CFR 52.1987), where they cover Prevention of Significant Deterioration.
  4. Where found in the federal rule, the terms "applicable state implementation plan" and "plan" refer to the programs and rules of LRAPA, as approved by the Oregon Environmental Quality Commission (EQC) or EPA, or any EPA-promulgated regulations (see 40 CFR Part 52, Subpart MM).
  5. Publications incorporated by reference in this rule are available from the office of the Lane Regional Air Protection Agency.
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