Section 326 IAC 2-3-3 - Applicable requirementsAuthority: IC 13-14-8; IC 13-17-3
Affected: IC 13-15; IC 13-17
Sec. 3.
(a) Prior to the issuance of a construction permit to a source subject to this rule, the applicant shall comply with the following requirements:(1) The proposed major new source or major modification shall demonstrate that the source will meet all applicable requirements of this title, any applicable new source performance standard in 40 CFR Part 60*, or any national emission standard for HAPs in 40 CFR Part 61*. If the commissioner determines that the proposed major new source cannot meet the applicable emission requirements, the permit to construct will be denied.(2) The applicant will apply emission limitation devices or techniques to the proposed construction or modification such that the LAER for the applicable pollutant will be achieved.(3) The applicant shall either demonstrate that:(A) all existing major sources owned or operated by the applicant in the state are in compliance with all applicable emission limitations and standards contained in the CAA and in this title; or(B) they are in compliance with a federally enforceable compliance schedule requiring compliance as expeditiously as practicable.(4) The applicant shall submit an analysis of alternative sites, sizes, production processes, and environmental control techniques for the proposed source that demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification.(5) Emissions resulting from the proposed construction or modification shall be offset by a reduction in actual emissions of the same pollutant from an existing source or combination of existing sources. The emission offset shall be such that there will be reasonable further progress toward attainment of the applicable ambient air quality standards as follows: (A) Greater than one-for-one unless otherwise specified.(B) For ozone nonattainment areas, the following table shall determine the minimum offset ratio requirements for major stationary sources of VOC or nitrogen oxides (unless a NOX waiver is in effect): | Ozone Classification | Minimum Offset Requirements |
| Marginal | 1.1 to 1 |
| Moderate | 1.15 to 1 |
| Serious | 1.2 to 1 |
| Severe | 1.3 to 1 |
(6) The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in accordance with Section 173 of the CAA 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.(7) The applicant shall obtain the necessary preconstruction approvals and shall meet all the permit requirements specified in 326 IAC 2-5.1 or 326 IAC 2-7, as applicable.(8) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with an applicable provision of the SIP and any other requirements under local, state, or federal law. (b) The following provisions shall apply to all emission offset evaluations: (1) Emission offsets shall be determined on a tons per year and, whenever possible, a pounds per hour basis when all facilities requiring offset involved in the emission offset calculations are operating at their maximum potential or allowed production rate. When offsets are calculated on a tons per year basis, the baseline emissions for existing sources providing the offsets shall be calculated using the allowed or actual annual operating hours, whichever is less.(2) The baseline for determining credit for emission offsets will be the emission limitations or actual emissions, whichever is lower, in effect at the time the application to construct or modify a source is filed. Credit for emission offset purposes may be allowable for existing control that goes beyond that required by source-specific emission limitations contained in this title.(3) In cases where the applicable rule under this title does not contain an emission limitation for a source or source category, the emission offset baseline involving the sources shall be the actual emissions determined at their maximum expected or allowable production rate.(4) In cases where emission limitations for existing sources allow greater emissions than the potential to emit of the source, emission offset credit shall only be allowed for emissions controlled below the potential to emit.(5) A source may receive offset credit from emission reductions achieved by shutting down an existing source or permanently curtailing production or operating hours below baseline levels if the reductions are permanent, quantifiable, and federally enforceable, as follows: (A) If the area has an attainment plan approved by the U.S. EPA, the shutdown or curtailment is creditable only if it occurred on or after the date of the most recent emissions inventory or attainment demonstration. However, in no event may credit be given for shutdowns that occurred prior to August 7, 1977. For purposes of this clause, the department may choose to consider a prior shutdown or curtailment to have occurred after the date of its most recent emissions inventory if the inventory explicitly includes, as current existing emissions, the emissions from the previously shutdown or curtailed sources.(B) The reductions may be credited in the absence of an approved attainment demonstration only if the:(i) shutdown or curtailment occurred on or after the date the new source permit application is filed; or(ii) applicant can establish that the proposed new source is a replacement for the shutdown or curtailed source and the cutoff date provisions in clause (A) are observed.(6) Emission offset credit involving an existing fuel combustion source will be based on the allowable emissions under other rules of this title for the type of fuel being burned at the time the new source application is filed. If the existing source commits to switch to a cleaner fuel at some future date, emission offset credit based on the allowable emissions for the fuels involved is acceptable, provided the permit is conditioned to require the use of a specific alternative control measure that would achieve the same degree of emission reduction should the source switch back to a dirtier fuel at some later date. The commissioner will grant emission offset credit for fuel switching only after ensuring that adequate supplies of the new fuel are available at least for the next ten (10) years.(7) In the case of VOC emissions, no emission offset credit may be allowed for replacing one (1) hydrocarbon compound with another of lesser reactivity, except for those compounds defined as nonphotochemically reactive hydrocarbons in 326 IAC 1-2-48.(8) No emission reduction may be approved to offset emissions that cannot be federally enforced. Offsetting emissions shall be considered federally enforceable if the reduction is included as a condition in the applicable permit as specified in 326 IAC 2-5.1 or 326 IAC 2-7 if issued under a federally-approved air permit program.(9) Emission reductions required under any other rule adopted by the board shall not be creditable as emission reductions and therefore cannot be used for emission offsets.(10) Incidental emission reductions that are not otherwise required by any other rule adopted by the board shall be creditable as emission reductions for emission offsets if the emission reductions meet all of the other requirements for offsets.(11) A source may offset by alternative or innovative means emission increases from rocket engine or motor firing and cleaning related to the firing at an existing or modified major source that tests rocket engines or motors under the following conditions:(A) Any modification proposed is solely for the purpose of expanding the testing of rocket engines or motors at an existing source that is permitted to test the engines on November 15, 1990.(B) The source demonstrates to the satisfaction of the department that: (i) it has used all reasonable means to obtain and utilize offsets, as determined on an annual basis, for the emissions increases beyond allowable levels;(ii) all available offsets are being used; and(iii) sufficient offsets are not available to the source.(C) The source has obtained a written finding from:(i) the Department of Defense; (ii) the Department of Transportation;(iii) the National Aeronautics and Space Administration; or (iv) another appropriate federal agency; that the testing of rocket motors or engines at the facility is required for a program essential to the national security.(D) The source will comply with an alternative measure, imposed by the department, designed to offset any emission increases beyond permitted levels not directly offset by the source.(12) Credit for an emissions reduction can be claimed to the extent that the department has not relied on the emission reduction credit in: (A) issuing any permit under regulations approved pursuant to 40 CFR Part 51 Subpart I*; or(B) a demonstration for attainment or reasonable further progress. *This document is incorporated by reference. Copies may be obtained from the Government Printing Office, 732 North Capitol Street NW, Washington, D.C. 20401 or are available for review and copying at the Indiana Department of Environmental Management, Office of Air Quality, Indiana Government Center North, Tenth Floor, 100 North Senate Avenue, Indianapolis, Indiana 46204.
Air Pollution Control Division; 326 IAC 2-3-3; filed Mar 10, 1988, 1:20 p.m.: 11 IR 2406; filed Nov 12, 1993, 4:00 p.m.: 17 IR 730; filed Nov 25, 1998, 12:13 p.m.: 22 IR 1005; filed Aug 17, 2001, 3:45 p.m.: 25 IR 12; filed Aug 10, 2004, 3:35 p.m.: 27 IR 3931; filed Oct 1, 2010, 3:48 p.m.: 20101027-IR-326070372FRA; filed Jun 11, 2012, 3:15 p.m.: 20120711-IR-326110251FRA