Section R18-2-403. Permits for Sources Located in Nonattainment Areas

A.      Except as provided in subsections (C) through (G) below, no permit or permit revision shall be issued under this Article to a person proposing to construct a new major source or make a major modification that is major for the pollutant for which the area is designated nonattainment unless:

1.        The person demonstrates that the new major source or the major modification will meet an emission limitation which is the lowest achievable emission rate (LAER) for that source for that regulated NSR pollutant.

2.        The person demonstrates that all existing major sources owned or operated by that person (or any entity con- trolling, controlled by, or under common control with that person) in the state are in compliance with, or on a sched- ule of compliance for, all conditions contained in permits of each of the sources and all other applicable emission limitations and standards under the Act and this Chapter.

3.        The person demonstrates that emission reductions for the specific pollutant(s) from source(s) in existence in the allowable offset area of the new major source or major modification (whether or not under the same ownership) meet the offset requirements of R18-2-404.

B.       No permit or permit revision under this Article shall be issued to a person proposing to construct a new major source or make a major modification to a major source located in a nonattain- ment area unless:

1.        The person performs an analysis of alternative sites, sizes, production processes, and environmental control techniques for such new major source or major modifica- tion; and

2.        The Director determines that the analysis demonstrates that the benefits of the new major source or major modifi- cation significantly outweigh the environmental and social costs imposed as a result of its location, construc- tion, or modification.

C.      At such time that a particular source or modification becomes a major source or major modification solely by virtue of a relaxation in any enforceable limitation which was established after August 7, 1980, on the capacity of the source or modifi- cation otherwise to emit a pollutant, such as restriction on hours of operation, then the requirements of this Section shall apply to the source or modification as though construction had not yet commenced on the source or modification.

D.      Secondary emissions shall not be considered in determining the potential to emit of a new source or modification and there- fore whether the new source or modification is major. How- ever, if a new source or modification is subject to this Section on the basis of its direct emissions, a permit or permit revision under this Article to construct the new source or modification shall be denied unless the requirements of R18-2-403(A)(3) and R18-2-404 are met for reasonably quantifiable secondary emissions caused by the new source or modification.

E.       A permit to construct a new major source or major modifica- tion shall be denied unless the conditions specified in subsec- tions (A)(1), (2), and (3) are met for fugitive emissions caused by the new source or modification. However, these conditions shall not apply to a new major source or major modification that would be a major source or major modification only if fugitive emissions, to the extent quantifiable, are considered in calculating the potential emissions of the source or modifica- tion, and the source does not belong to a section 302(j) cate- gory.

F.       The requirements of subsection (A)(3) shall not apply to tem- porary emissions units, such as pilot plants, portable facilities that will be relocated outside of the nonattainment area and the construction phase of a new source, if those units will operate for no more than 24 months in the nonattainment area, are oth- erwise in compliance with the requirement to obtain a permit under this Chapter and are in compliance with the conditions of that permit.

G.      A decrease in actual emissions shall be considered in deter- mining the potential of a new source or modification to emit only to the extent that the Director has not relied on it in issu- ing any permit or permit revision under this Article or the state has not relied on it in demonstrating attainment or reasonable further progress.

H.      Within 30 days of the issuance of any permit under this Sec- tion, the Director shall submit control technology information from the permit to the Administrator for the purposes listed in Section 173(d) of the Act.

I.        The issuance of a permit or permit revision under this Article in accordance with this Section shall not relieve the owner or operator of the responsibility to comply fully with applicable provisions of the SIP and any other requirements under local, state, or federal law.

Historical Note

Former Section R9-3-403 repealed, new Section R9-3- 403 adopted effective May 14, 1979 (Supp. 79-1). Former Section R9-3-403 renumbered without change as Section R18-2-403 (Supp. 87-3). Section R18-2-403 renumbered to R18-2-603, new Section R18-2-403 adopted effective November 15, 1993 (Supp. 93-4). Amended by final

rulemaking at 18 A.A.R. 1542, effective August 7, 2012

(Supp. 12-2).