WSR 99-04-105

PROPOSED RULES

PUGET SOUND AIR

POLLUTION CONTROL AGENCY

[ Filed February 3, 1999, 9:54 a.m. ]

Original Notice.

Exempt from preproposal statement of inquiry under 70.94.141(1).

Title of Rule: Amending Regulation I, Sections 1.07, 6.03, 6.04, 6.06, and 6.07.

Purpose: To ensure the Puget Sound Air Pollution Control Agency's new source review requirements are consistent with federal requirements.

Other Identifying Information: 1.07 - Definitions; 6.03 - Notice of Construction; 6.04 - Notice of Construction Review Fees; 6.06 - Public Notice; 6.07 - Order of Approval--Order to Prevent Construction.

Statutory Authority for Adoption: Chapter 70.94 RCW.

Statute Being Implemented: RCW 70.94.141.

Summary: This proposal incorporates language that is consistent with federal standards for construction or reconstruction of major sources of hazardous air pollutants (HAPs) - 112(g) of federal Clean Air Act.

Reasons Supporting Proposal: The Puget Sound Air Pollution Control Agency's new source review requirements need to be consistent with federal requirements.

Name of Agency Personnel Responsible for Drafting: Maggie Corbin, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4057; Implementation: Dave Kircher, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4050; and Enforcement: Neal Shulman, 110 Union Street, #500, Seattle, WA 98101, (206) 689-4078.

Name of Proponent: Puget Sound Air Pollution Control Agency, governmental.

Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: The state implementation plan will be updated to reflect these amendments.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: This proposal incorporates language for new source review requirements to ensure consistency with federal standards for construction or reconstruction of major sources of hazardous air pollutants (HAPs).

Proposal Changes the Following Existing Rules: This proposal will add definitions to Article 1 (Policy, Short Title, and Definitions) and incorporate language consistent with federal requirements into Article 6 (New Source Review).

No small business economic impact statement has been prepared under chapter 19.85 RCW. This agency is not subject to the small business economic impact provision of the Administrative Procedure Act.

RCW 34.05.328 does not apply to this rule adoption. Pursuant to RCW 70.94.141(1), RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Puget Sound Air Pollution Control Agency Offices, 110 Union Street, #500, Seattle, WA 98101, on March 11, 1999, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact Agency Receptionist, (206) 689-4010, by March 4, 1999, TDD (800) 833-6388, or (800) 833-6385 (Braille).

Submit Written Comments to: Dennis McLerran, Puget Sound Air Pollution Control Agency, 110 Union Street, #500, Seattle, WA 98101, fax (206) 343-7522, by March 1, 1999.

Date of Intended Adoption: March 11, 1999.

February 2, 1999

Margaret L. Corbin

Air Pollution Engineer

AMENDATORY SECTION

REGULATION I SECTION 1.07 DEFINITIONS

When used herein:

(a) ACTUAL EMISSIONS means the average rate at which the source actually emitted air contaminants during the 2-year period preceding a specific date, and which is representative of normal source operations. To account for unusual circumstances such as strikes, the Control Officer may approve or require the use of another time period that is more representative of normal operations than is the immediately preceding 2-year period.

(b) AGENCY means the Puget Sound Air Pollution Control Agency.

(c) AIR CONTAMINANT means dust, fumes, mist, smoke, other particulate matter, vapor, gas, odorous substance, or any combination thereof.

(d) AIR POLLUTION means the presence in the outdoor atmosphere of one or more air contaminants in sufficient quantities and of such characteristics and duration as is, or is likely to be, injurious to human health, plant or animal life, or property, or which unreasonably interferes with enjoyment of life and property. Air pollution shall not include air contaminants emitted in compliance with chapter 17.21 RCW, the Washington Pesticide Application Act, which regulates the application and control of the use of various pesticides.

(e) ALLOWABLE EMISSIONS means the emission rate calculated using the maximum rated capacity of the source (unless the source is subject to a federally enforceable permit that limits the operating rate, or hours of operation, or both) and the most stringent of the following:

(1) Any applicable standard under 40 CFR Parts 60, 61, and 63;

(2) Any applicable emission standard under Regulation I, II, or III;

(3) Any applicable State Implementation Plan emission standard, including those with a future compliance date; or

(4) Any applicable emission standard specified in an Order of Approval or operating permit, including those with a future compliance date.

(f) AMBIENT AIR means the portion of the atmosphere, external to buildings, to which the general public has access.

(g) BEST AVAILABLE CONTROL TECHNOLOGY means technology that will result in an emission standard, including a visible emission standard, based on the maximum degree of reduction which the Agency, on a case-by-case basis, taking into account energy, environmental, and economic impacts, and other costs, determines is achievable for such source through application of production processes, available methods, systems, and techniques, including fuel cleaning or treatment, clean fuels, or innovative fuel combustion techniques for control of each air contaminant. In no event shall application of the best available control technology result in emissions of any air contaminant that would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60, 61, and 63. The Agency may prescribe a design, equipment, work practice, or operational standard, or combination thereof, to meet the requirements of best available control technology. Such standard shall, to the degree possible, set forth the emission reduction achievable by implementation of such design, equipment, work practice, or operation and shall provide for compliance by means that achieve equivalent results.

(h) BOARD means the Board of Directors of the Puget Sound Air Pollution Control Agency.

(i) COMBUSTIBLE REFUSE means solid or liquid combustible waste material.

(j) COMMENCED CONSTRUCTION means that the owner or operator has all the necessary preconstruction approvals or permits and either has begun, or has caused to begin, a continuous program of actual on-site construction of the source or has entered into binding agreements or contractual obligations to undertake construction of the source which cannot be canceled or modified without substantial loss to the owner or operator.

(k) CONTROL EQUIPMENT means any device which prevents or controls the emission of any air contaminant.

(l) CONTROL OFFICER means the Air Pollution Control Officer of the Puget Sound Air Pollution Control Agency.

(m) EMISSION means a direct or indirect release of any air contaminant into the ambient air.

(n) EMISSION STANDARD means a requirement established under the Federal Clean Air Act (FCAA) or chapter 70.94 RCW that limits the quantity, rate, or concentration of emissions of air contaminants on a continuous basis including any requirement relating to the operation or maintenance of a source to assure continuous emission reduction, and any design, equipment, work practice, or operational standard promulgated under the FCAA or chapter 70.94 RCW.

(o) EQUIPMENT means any stationary or portable device or any part thereof that emits or may emit any air contaminant into the atmosphere.

(p) FACILITY means the sum total of all of the pollutant emitting activities that belong to the same industrial grouping (as defined by major groups in the Standard Industrial Classification Manual, NTIS Order No. PB 87-100012), are located on one or more contiguous or adjacent properties, and are owned or operated by the same person or persons under common control.

(q) FUEL BURNING EQUIPMENT means equipment that produces hot air, hot water, steam, or other heated fluids by external combustion of fuel.

(r) FUGITIVE DUST means particulate matter or any visible air contaminant other than uncombined water that is not collected by a capture system and emitted from a stack, but is released to the atmosphere at the point of generation.

(s) FUGITIVE EMISSION means an emission that does not pass and that could not reasonably pass through a stack, chimney, or other functionally equivalent opening.

(t) GASOLINE means a volatile organic compound having a true vapor pressure greater than 1.5 pounds per square inch (10.3 kPa) at 68°F (20°C), that is a liquid at a temperature of 68°F (20°C) and a barometric pressure of 29.92 inches of mercury (101.325 kPa), and is used as a fuel for internal combustion engines.

(u) GASOLINE STATION means any site dispensing gasoline into fuel tanks of motor vehicles, marine vessels, or aircraft from stationary storage tanks.

(v) HAZARDOUS AIR POLLUTANT means any air pollutant listed in or pursuant to section 112(b) of the federal Clean Air Act, 42 U.S.C. §7412.

(((v))) (w) INSTALLATION means the placement, assemblage, or construction of equipment or control equipment at the premises where the equipment or control equipment will be used, and includes all preparatory work at such premises.

(((w))) (x) LOWEST ACHIEVABLE EMISSION RATE means that rate of emissions that reflects either the most stringent emission standard that 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 emission standards are not achievable, or the most stringent emission standard that is achieved in practice by such class or category of source, whichever is more stringent.

(((x))) (y) MAJOR MODIFICATION means a modification of a major source that would increase the actual emissions of any air contaminant for which the area is designated nonattainment by more than the following:


Air ContaminantTons/Year
Carbon Monoxide100.0
Volatile Organic Compounds40.0
Nitrogen Oxides40.0
PM1015.0
Sulfur Dioxide40.0
Lead0.6
In determining whether the thresholds defining a major modification have been exceeded, the emissions permitted under Orders of Approval issued to the facility since the designation of nonattainment that were not major modifications, and all fugitive emission increases that can be reasonably quantified shall be included. Any emission reduction credits banked by the facility since the designation of nonattainment may be subtracted from this amount provided that any credits so applied are then considered to have been used. For modifications of an individual piece of equipment, the baseline shall be the source's actual emissions or allowable emissions, whichever is smaller. (Note: volatile organic compounds and nitrogen oxides are the air contaminants for which an area is designated nonattainment for ozone.)

(((y))) (z) MAJOR SOURCE means a facility that emits or has the potential to emit 100 tons per year or more of any air contaminant subject to regulation under the federal Clean Air Act. In determining whether the threshold defining a major source has been exceeded all fugitive emissions that can be reasonably quantified shall be included. Any emission reduction credits banked by the facility may be subtracted from this amount provided that any credits so applied are then considered to have been used.

(aa) MAJOR SOURCE OF HAZARDOUS AIR POLLUTANTS means any stationary source or group of stationary sources located within a contiguous area and under common control that emits or has the potential to emit, considering controls, in the aggregate, 10 tons per year or more of hazardous air pollutants or 25 tons per year or more of any combination of hazardous air pollutants. In calculating potential to emit for a source of hazardous air pollutant emissions, all fugitive emissions of hazardous air pollutants associated with the source shall be included.

(bb) MAXIMUM ACHIEVABLE CONTROL TECHNOLOGY EMIS-SION LIMITATION FOR NEW SOURCES means the emission limitation that is not less stringent than the emission limitation achieved in practice by the best controlled similar source, and that reflects the maximum degree of reduction in emissions, taking into consideration the cost of achieving such emission reductions, and any non-air quality health and environmental impacts and energy requirements.

(((z))) (cc) MODIFICATION means any physical change in, or change in the method of operation of, a source, except an increase in the hours of operation or production rates (not otherwise prohibited) or the use of an alternative fuel or raw material that the source is approved to use under an Order of Approval or operating permit, that increases the amount of any air contaminant emitted or that results in the emission of any air contaminant not previously emitted.

(((aa))) (dd) MOTOR VEHICLE means any operating vehicle or one capable of being operated that has its own self-contained sources of motive power, is designed for the transportation of people or property, and is of the type for which a license is required for operation on a highway.

(((bb))) (ee) MULTIPLE CHAMBER INCINERATOR means a furnace for the destruction of waste consisting of three or more refractory-lined combustion chambers in series, physically separated by refractory walls, interconnected by gas passage ports or ducts, and employing adequate design parameters necessary for maximum combustion of the material to be burned.

(((cc))) (ff) NONATTAINMENT AREA means a geographic area designated by the United States Environmental Protection Agency that violates a primary or secondary national ambient air quality standard.

(((dd))) (gg) OWNER OR OPERATOR means the person who owns, leases, supervises, or operates the equipment or control equipment.

(((ee))) (hh) PARTICULATE MATTER means any material, except water in an uncombined form, that is, has been, or is likely to become airborne and exists as a liquid or a solid at a temperature of 68°F (20°C) and a barometric pressure of 29.92 inches of mercury (101.325 kPa).

(((ff))) (ii) PERSON means and includes any individual, firm, public or private corporation, association, partnership, political subdivision, municipality, or governmental agency.

(((gg))) (jj) PM10 means particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers as measured by a reference method based on Appendix J of 40 CFR Part 50 and designated in accordance with 40 CFR Part 53 or by an equivalent method designated in accordance with 40 CFR Part 53.

(((hh))) (kk) POTENTIAL TO EMIT means the maximum capacity of a facility to emit an air contaminant under its physical and operational design. Any physical or operational limitation on the capacity of the facility to emit an air contaminant, including control equipment and restrictions on the 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 enforceable.

(((ii))) (ll) REASONABLY AVAILABLE CONTROL TECHNOLOGY means the lowest emission standard that a particular source or source category is capable of meeting by the application of control technology that is reasonably available considering technological and economic feasibility. Reasonably available control technology is determined on a case-by-case basis for an individual source or source category taking into account the impact of the source upon air quality, the availability of additional controls, the emission reduction to be achieved by additional controls, the impact of additional controls on air quality, and the capital and operating costs of the additional controls.

(((jj))) (mm) REFUSE BURNING EQUIPMENT means equipment employed to burn any solid or liquid combustible refuse.

(((kk))) (nn) SOURCE means a building, structure, equipment, control equipment, or facility that emits or may emit any air contaminant into the atmosphere.

(((ll))) (oo) STANDARD CONDITIONS means a temperature of 68°F and a barometric pressure of 29.92 inches of mercury.

(((mm))) (pp) TOTAL ALLOWABLE EMISSIONS means allowable emissions, including the emissions from all Orders of Approval issued to the facility since the designation of nonattainment that were not major modifications, and all fugitive emissions that can be reasonably quantified.

(((nn))) (qq) TOXIC AIR CONTAMINANT or TAC means an air contaminant listed in Appendix A of Regulation III.

(((oo))) (rr) TRUE VAPOR PRESSURE means the equilibrium partial pressure of an organic liquid (determined by methods described in American Petroleum Institute Bulletin 2517, "Evaporation Loss from External Floating Roof Tanks", May 1996).

(((pp))) (ss) URBANIZED AREA means those portions of King, Pierce, Kitsap, and Snohomish Counties designated as urbanized areas by the U.S. Department of Commerce, Bureau of the Census.

(((qq))) (tt) VOLATILE ORGANIC COMPOUND or VOC means an organic compound that participates in atmospheric photochemical reactions. This excludes all compounds determined to have negligible photochemical reactivity by the U.S. Environmental Protection Agency and listed in 40 CFR 51.100(s) in effect July 1, 1998.

AMENDATORY SECTION


REGULATION I SECTION 6.03 NOTICE OF CONSTRUCTION

(a) It shall be unlawful for any person to cause or allow the construction, installation, establishment, or modification of an air contaminant source, except those sources that are excluded in Section 6.03(b), unless a "Notice of Construction and Application for Approval" has been filed with and approved by the Agency.

(b) Except when part of a new major source or major modification in a nonattainment area, or when constructing or reconstructing a major source of hazardous air pollutants, the following air contaminant sources do not need a "Notice of Construction and Application for Approval" approved by the Agency prior to construction, installation, establishment, or modification:

(1) Ventilating systems, including fume hoods, not designed to prevent or reduce air contaminant emissions.

(2) Fuel burning equipment that has a maximum input rate of:

(A) less than 0.5 million Btu per hour (0.15 million joules per second) burning waste-derived fuel; or

(B) less than 10 million Btu per hour (3 million joules per second) burning natural gas, propane, or butane; or

(C) less than 1 million Btu per hour (0.3 million joules per second) burning any other fuel.

(3) Insecticide, pesticide, or fertilizer spray equipment.

(4) Internal combustion engines less than the size thresholds of the proposed United States Environmental Protection Agency (EPA) New Source Performance Standards (NSPS) 40 CFR Part 60 Subpart FF (Stationary Internal Combustion Engines, 44 FR 43152 7/23/79) or the promulgated EPA NSPS 40 CFR Part 60 Subpart GG (Stationary Gas Turbines).

(5) Laboratory equipment used exclusively for chemical or physical analyses.

(6) Laundry dryers without control equipment.

(7) Dryers or ovens used solely to accelerate evaporation.

(8) Routing, turning, carving, cutting, and drilling equipment used for metal, wood, plastics, rubber, leather, or ceramics which does not release air contaminants to the ambient air.

(9) Storage tanks:

(A) that do not store substances capable of emitting air contaminants; or

(B) with a rated capacity of 1,000 gallons (3,780 liters) or less used for storage of gasoline; or

(C) with a rated capacity of less than 10,000 gallons (38,000 liters) used for storage of volatile organic compounds; or

(D) with a rated capacity of less than 40,000 gallons (150,000 liters) used for storage of volatile organic compounds with a true vapor pressure less than 0.01 kPa (0.002 psia).

(10) Sanitary or storm drainage systems.

(11) Welding, brazing, or soldering equipment.

(12) Asphalt roofing and laying equipment (not including manufacturing or storage).

(13) Restaurants and other retail food-preparing establishments.

(14) Cold solvent cleaners using a solvent with a true vapor pressure less than or equal to 4.2 kPa (0.6 psia).

(15) Retail printing operations (not including web presses).

(16) Spray painting or blasting equipment used at a temporary location to clean or paint bridges, water towers, buildings, or similar structures.

(17) Any source that has been determined through review by the Control Officer not to warrant a "Notice of Construction and Application for Approval", due to the minimal amount and nature of air contaminants produced and potential to contribute to air pollution, with special reference to effects on health, economic and social factors, and physical effects on property. The owner or operator shall submit to the Control Officer, the information necessary to make this determination. The Control Officer shall notify the owner or operator in writing whether a "Notice of Construction and Application for Approval" is required for the source.

(c) Each Notice of Construction and Application for Approval shall be submitted on forms provided by the Agency and shall be accompanied by a set of plans that fully describes the proposed source, the means for prevention or control of the emissions of air contaminants, the appropriate fee as required by Section 6.04, and any additional information required by the Board or Control Officer to demonstrate that the proposed source will meet the requirements of Section 6.07.

(d) Within 30 days of receipt of a Notice of Construction and Application for Approval, the Agency shall notify the applicant in writing if any additional information is necessary to complete the application.

AMENDATORY SECTION


REGULATION I SECTION 6.04 NOTICE OF CONSTRUCTION REVIEW FEES
A Notice of Construction and Application for Approval is incomplete until the Agency has received a fee as shown below:

General (not classified below) for

each Piece of Equipment or

Control Equipment . . . . . . . . . . . .

$500
Minor NOC Change . . . . . . . . . . . . $500
NOC Applicability Determination . . . . . . . . . . . . $200
Relocation of Previously Permitted Portable Source to a New Address, except soil thermal desorption units . . . . . . . . . . . . $500
Asphalt Concrete Plant . . . . . . . . . . . . $1,000
Coffee Roaster . . . . . . . . . . . . $1,000
Composting Facility . . . . . . . . . . . . . . . . . . . . . . . . $2,500
Dry Cleaner (per machine) . . . . . . . . . . . . $300
Gasoline Station . . . . . . . . . . . . $500
Landfill Gas System . . . . . . . . . . . . $2,500
Refuse Burning Equipment: (rated capacity)

12 tons per day or less . . . . . . . . . . . .

$5,000
greater than 12 tons per day but less than 250 tons per day . . . . . . . . . . . . $20,000
250 tons per day or greater . . . . . . . . . . . . $50,000
Spray-Painting Operation (per booth) . . . . . . . . . . . . $500
Storage Tanks excluding those at gasoline stations: (gallons)
less than 20,000 . . . . . . . . . . . . $300
20,000 or more . . . . . . . . . . . . $1,000
Soil Thermal Desorption Unit (initial) . . . . . . . . . . . . $3,000
Relocation of Approved Desorption Unit to New Address . . . . . . . . . . . . $1,000
Additional Charges: SEPA Threshold Determination . . . . . . . . . . . . $250
Air Toxics Review (under Regulation III, Section 2.07 (c) (2) . . . . . . . . . . . . $500
Air Toxics Review (under Regulation III, Section 2.07 (c) (3) . . . . . . . . . . . . $5,000
Major Source, Major Modification, or Emission Increases greater than Prevention of Significant Deterioration Thresholds (see Regulation I, Section 6.07(d)) . . . . . . . . . . . . $5,000
Construction or reconstruction of a major source of hazardous air pollutants (see Regulation I, Section 6.07 (f)) . . . . . . . . . . . . $2,500
Opacity/Grain Loading Correlation . . . . . . . . . . . . $5,000
Emissions Units Subject to an NSPS or NESHAP (except residential wood heaters, asbestos renovation or demolition, and perchloroethylene dry cleaning) . . . . . . . . . . . . $1,000
Public Notice (plus publication fees) . . . . . . . . . . . . $500

AMENDATORY SECTION


REGULATION I SECTION 6.06 PUBLIC NOTICE

(a) The Agency shall provide public notice for any proposed Order of Approval if:

(1) The proposed installation or modification would increase the emissions of any air contaminant by more than the following:


Air ContaminantTons/Year
Carbon Monoxide . . . . . . . . . . . . 100.0
VOC . . . . . . . . . . . . 40.0
Nitrogen Oxides . . . . . . . . . . . . 40.0
PM10 . . . . . . . . . . . . 15.0
Sulfur Dioxide . . . . . . . . . . . . 40.0
Lead . . . . . . . . . . . . 0.6
Fluorides . . . . . . . . . . . . 3.0
Sulfuric Acid . . . . . . . . . . . . 7.0
Total Reduced Sulfur . . . . . . . . . . . . 10.0
(2) The applicant requests a limit on the potential to emit;

(3) The applicant requests to bank emission reduction credits;

(4) The applicant requests approval of a risk analysis;

(5) The proposed installation or modification is construction or reconstruction of a major source of hazardous air pollutants subject to the requirements in Section 6.07(f);

(((5))) (6) The proposed installation or modification involves refuse burning equipment; or

(((6))) (7) The Control Officer determines that there may be substantial public interest in the proposal.

(b) Public notice shall be published in a newspaper of general circulation in the area of the proposed project and shall include the following:

(1) The name and address of the owner or operator and the facility;

(2) A brief description of the proposal;

(3) The locations at which copies of the preliminary determination and a summary of information considered in making such preliminary determination are available for public inspection;

(4) The deadline for submitting written comment; and

(5) That a public hearing may be held if the Agency determines within a 30-day period that significant public interest exists.

(c) Notice shall also be sent to the U.S. Environmental Protection Agency Regional Administrator.

(d) The cost of providing public notice shall be borne by the applicant.

(e) The Agency shall not make a final decision on any application until the public comment period has ended and any comments received have been considered. Unless a public hearing is held, the public comment period shall be the 30-day period for written comment published as provided above. If a public hearing is held, the public comment period shall extend through the hearing date.

(f) The applicant, any interested governmental entity, any group, or any person may request a public hearing within the 30-day period published as provided above. Any such request shall indicate the interest of the entity filing it and why a hearing is warranted. The Agency may, at its discretion, hold a public hearing if it determines significant public interest exists. Any such hearing shall be held upon such notice and at a time and place as the Agency deems reasonable. The Agency shall provide at least 30 days prior notice of any hearing.

AMENDATORY SECTION


REGULATION I SECTION 6.07 ORDER OF APPROVAL - ORDER TO PREVENT CONSTRUCTION

(a) Within 60 days of receipt of a complete Notice of Construction and Application for Approval, or as promptly as possible after the close of the public comment period if subject to the public notice requirements of Section 6.06 of this Regulation, the Board or Control Officer shall issue an Order of Approval or ((an Order to Prevent Construction)) notify the applicant of an intent to disapprove the application in accordance with Section 6.07(h). A person seeking approval to construct or modify a source that requires an operating permit may elect to integrate review of the operating permit application or amendment required by Article 7 of this Regulation provided that any such application shall be processed in accordance with the operating permit program procedures and deadlines.

(b) An Order of Approval may provide such conditions of operation as are reasonably necessary to assure compliance with all applicable emission standards.

(c) No Order of Approval shall be issued unless the Notice of Construction and Application for Approval demonstrates to the Board or Control Officer that:

(1) The operation of the source at the location proposed will not cause or contribute to a violation of an ambient air quality standard;

(2) The source will meet the requirements of all applicable emission standards;

(3) Best available control technology is employed for the installation of new sources and the modification of existing sources; and

(4) Reasonably available control technology is employed for the replacement of existing control equipment.

(d) No Order of Approval shall be issued for a new major source or major modification in a nonattainment area unless the Notice of Construction and Application for Approval also demonstrates to the Board or Control Officer that:

(1) For those air contaminants for which the area is designated nonattainment, lowest achievable emission rate is employed for each new source at a new major source, and each new or modified source involved in a major modification;

(2) All existing major sources owned or operated by the applicant in the state of Washington are in compliance with all applicable emission standards under the federal Clean Air Act or are on an approved compliance schedule;

(3) Offsets in the form of emission reduction credits (banked pursuant to Section 6.08 of this Regulation) in an amount greater than or equal to 1.10 times the proposed total allowable emissions from the new major source, or the increase from current actual emissions to the proposed total allowable emissions for a major modification, have been obtained from sources in the same nonattainment area and occur by the time the new major source or major modification begins operation; and

(4) The benefits of the proposed new major source or major modification significantly outweigh the environmental and social costs imposed as a result of its location, installation, or modification. (This demonstration, which shall include an analysis of alternative sites, sizes, production processes, and environmental control techniques, may be in the form of an environmental impact statement prepared under the State Environmental Policy Act or the National Environmental Policy Act.)

(e) No Order of Approval shall be issued for a new or modified source of toxic air contaminants, except for sources exempted by Section 2.01 of Regulation III, unless the Notice of Construction and Application for Approval demonstrates to the Board or Control Officer that:

(1) The toxic air contaminant emissions from the source will not result in the exceedance of any acceptable source impact level listed in Appendix A of Regulation III; or

(2) The emissions from the source will not cause air pollution. This demonstration shall be performed in accordance with Section 2.07 of Regulation III and requires approval from the Department of Ecology.

(f) No Order of Approval shall be issued for the construction or reconstruction of a major source of hazardous air pollutants, as defined in 40 CFR section 63.41, excluding sources listed below in Section 6.07(f) (1) and (2), unless the Notice of Construction and Application for Approval demonstrates to the Board or Control Officer that the maximum achievable control technology emission limitation for new sources is employed. Maximum achievable control technology shall be determined in accordance with principles in 40 CFR section 63.43(d).

(1) Major sources of hazardous air pollutants specifically regulated or exempted under a standard issued pursuant to sections 112(d), (h), or (j) of the federal Clean Air Act and incorporated in another subpart of 40 CFR Part 63; or

(2) Major sources listed in 40 CFR sections 63.40(c), (e), or (f).

(((f))) (g) An Order of Approval shall expire unless the owner or operator has commenced construction of the source within 18 months of the date of its issuance or if construction is discontinued for a period of more than 18 months.

(((g) An Order to Prevent Construction shall set forth the objections in detail with references to the provisions of this Regulation that would not be met. Such Order shall become final unless, no later than 15 days after the date the Order is served, the applicant petitions for a reconsideration of the Order, with reasons for the reconsideration. The Control Officer shall consider the petition, and shall within 30 days give written Order of Approval or final disapproval of the Notice of Construction setting forth the reasons for disapproval.))

(h) An Intent to Disapprove an Application and any subsequent Order to Prevent Construction shall set forth the grounds on which the Intent to Disapprove or Order is based with references to the provisions of this Regulation that would not be met. A final Order to Prevent Construction shall be issued unless, no later than 60 days after the date the Intent to Disapprove is served, the applicant petitions for reconsideration of the Intent to Disapprove, setting forth the reasons for the reconsideration. The Control Officer shall consider the petition, and shall within 30 days of receipt of the petition, issue an Order of Approval or final Order to Prevent Construction, setting forth the reasons for disapproval.

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