Sec. 231-9.4. Setting the initial PAL

The PAL for a facility must be calculated as the sum of the baseline actual emissions of the PAL contaminant for each emission source at the facility plus an amount equal to the applicable significant project threshold for the PAL contaminant under Subpart 231-13 of this Part or under the act, whichever is lower.

(a) When establishing the PAL for a particular PAL contaminant, only one 24 consecutive month period may be used to determine the baseline actual emissions for all emission sources. However, a different 24 consecutive month period may be used for each different PAL contaminant.

(b) Emissions associated with emission sources that were permanently shut down after this 24 consecutive month period must be subtracted from the PAL calculation.

(c) Emissions from a permitted emission source or an exempt or trivial emission source on which actual construction began after the 24 consecutive month period, but has not yet commenced operation, must be added to the PAL calculation in an amount equal to the potential to emit of the emission source.

(d) Where the department is aware of any future applicable requirement(s), prior to issuance of the permit which establishes the PAL, the department will specify a reduced PAL in the permit to become effective on the future compliance date(s) of the applicable requirement(s). For example, if the facility will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NO_x to a new rule limit of 30 ppm, the permit must contain a future effective PAL that is equal to the current PAL reduced by half of the original baseline emissions of such emission source(s).

(e) Commencing with the first day of the sixth year of the PAL, the PAL shall be reduced as follows:

(1) The PAL level shall be reduced to 75 percent of the initial PAL level unless the owner or operator demonstrates that a lesser level of reduction is justified in accordance with paragraph (2) of this subdivision.

(2) The owner or operator may seek an alternative reduced PAL level by demonstrating, at the time of application for the PAL, that application of BACT and/or LAER (depending on whether attainment or nonattainment requirements apply) on all major PAL emission sources at the facility would not result in a 25 percent reduction in the initial PAL level, assuming operation of those major PAL emission sources at full capacity. In its application for a PAL, the owner or operator shall provide, as applicable, a BACT review in accordance with section 231-8.7 of this Part and/or a LAER analysis in accordance with section 231-6.5 of this Part. Based on the information provided, the department may, in its sole discretion, authorize a reduction in the PAL to a level that would reflect the emissions from the facility if all major PAL emission sources are operated at full capacity after complying with BACT and/or LAER, as applicable. In making these determinations, emissions from minor PAL emissions sources shall be held constant at the initial baseline levels. In no event shall the reduced PAL level calculated in this paragraph exceed the initial PAL level set in subdivisions (a) through (d) of this section.