Wis. Admin. Code Department of Natural Resources NR 425.05

Current through October 28, 2024

Section NR 425.05 - Internal offsets

An owner or operator of a surface coating or printing facility subject to ss. NR 422.05 to 422.15 may achieve compliance with the emission limitations in those sections through the use of an internal offset provided the owner or operator has submitted, and the department has approved, an application under sub.(1) or (2). The owner or operator shall specify the subsection under which the application is submitted.

(1) SOURCE-SPECIFIC SIP REVISION.

(a)Eligibility. The department may, by order issued under s. 285.13(2), Stats., approve an application made under this subsection only if all of the following conditions are met:

1. The construction or modification of each coating or printing line with emissions exceeding an applicable limitation was commenced on or before:

a. August 1, 1979, for sources covered under ss. NR 422.05(1), 422.06(1), 422.07(1), 422.08(1), 422.09(1), 422.10(1), 422.11(1) and 422.12(1).

b. April 1, 1981, for sources covered under ss. NR 422.13(1), 422.14(1) and 422.15(1).

2. The owner or operator has certified, and the department has confirmed, that the emissions of all air contaminants from all existing sources owned or controlled by the owner or operator in the state, other than VOC emissions from sources specified in subd. 1. for which an application was made under this subsection, are in compliance with or under a schedule for compliance as expeditiously as practicable with all applicable local, state and federal laws and regulations.

3. The owner or operator has demonstrated to the department's satisfaction that the allowable emission rates in pars. (b) 1. and 2. can be met.

4. The owner or operator has demonstrated to the department's satisfaction that the requirements of s. NR 439.04 can be met.

(b)Approval criteria. Any department approval of an application made under this subsection shall, at a minimum, do all of the following:

1. Establish an allowable emission rate for each of the coating and printing lines involved in the internal offset.

2. Establish a combined daily allowable emission rate from all coating and printing lines involved in the internal offset which is consistent with the U.S. environmental protection agency's "Emissions Trading Policy Statement; General Principles for Creation, Banking and Use of Emission Reduction Credits", 51 FR 43814, December 4, 1986, incorporated by reference in s. NR 484.06.

3. Establish recordkeeping requirements adequate to determine compliance and consistent with s. NR 439.04.

(c)Revocation. The department may, after notice and opportunity for hearing, revoke or modify any internal offset approved under this subsection when any term or condition of the approval has been violated, or for other reasons deemed necessary by the department. Any modification shall be submitted to, and will not become effective for federal purposes until approved by, the administrator or designee as a source-specific revision to the department's state implementation plan for ozone.

(d)Additional requirements. Any internal offset approved under this subsection may not become effective for federal purposes until it has met the following requirements:

1. It has been submitted to the administrator pursuant to applicable law, including but not limited to 42 USC 7410 and 40 CFR parts 51 and 52, and all substantive requirements of the federal law have been met.

2. It has been approved by the administrator or designee as a revision to the state implementation plan.

Note: In reviewing internal offset approvals, the U.S. environmental protection agency will require that the internal offset meet the criteria of its "Emissions Trading Policy Statement; General Principles for Creation, Banking and Use of Emission Reduction Credits", 51 FR 43814, December 4, 1986.

(e)Relocated lines. Notwithstanding par. (a) 1., any coating or printing line which is relocated to another facility may comply with the emission limitations in ss. NR 422.05 to 422.15 through an internal offset if the following conditions are met:

1. The internal offset applies only to relocated coating or printing lines which had been jointly involved in an internal offset approved under this subsection.

2. The internal offset involving the relocated lines is approved by the department under the criteria of pars. (a) 2. to 4., (b) and (d).

(2) GENERIC INTERNAL OFFSETS.

(a)Eligibility. The department may, by order issued under s. 285.13(2), Stats., approve an application made under this subsection only if all of the following conditions are met:

1. Opportunity for public comment has been offered for a 30 day period through public notice, and where requested, a public hearing has been held. The department shall provide the region V office of the U.S. environmental protection agency with a copy of the public notice, the department's technical analysis and the proposed decision by the first day of the public comment period.

2. The owner or operator has demonstrated to the department's satisfaction that the allowable emission rates in pars. (b) 1. and 2. can be met.

3. The owner or operator has demonstrated to the department's satisfaction that the requirements of s. NR 439.04 can be met.

(b)Approval criteria. Any department approval of an application made under this subsection shall, at a minimum, do all of the following:

1. Establish an allowable emission rate for each of the coating and printing lines involved in the internal offset.

2. Establish a combined daily allowable emission rate from all coating and printing lines involved in the internal offset equal to: -

See PDF for diagram

where E is the total allowable emissions from all of the coating and printing lines involved in the internal offset in kilograms (pounds), Y = 1 for facilities located in areas designated attainment or unclassified for ozone or in areas designated nonattainment for ozone with a federally approved demonstration of attainment, and Y = 0.8 for facilities located in areas designated nonattainment for ozone and lacking a federally approved demonstration of attainment, A1,2...n is the lowest of the allowable emission rate for each coating or printing line pursuant to ss. NR 422.05 to 422.15, or other limitation imposed by permit, order or approval, or the actual emission rate for each coating or printing line, as of the date of the internal offset application, in kilograms per liter (pounds per gallon) of coating or ink, excluding water, delivered to the applicator, B1,2...n is the amount of coating material or ink in liters (gallons), delivered to the applicator during the actual production day, C1,2 ...n is the volume fraction of solids in the coating or ink, delivered to the applicator during the actual production day, and D1,2...n is the theoretical volume fraction of solids in the coating or ink necessary to meet the lowest of the allowable emission rate for each coating or printing line pursuant to ss. NR 422.05 to 422.15, or other limitation imposed by permit, order or approval, calculated from: - See PDF for diagram

where P1,2...n is the density of the VOC used in the coating or ink delivered to the applicator during the actual production day in kilograms per liter (pounds per gallon). If the coating or ink does not contain any VOCs, or if the actual VOC density cannot be demonstrated by the owner or operator, a value of 0.88 kilograms per liter (7.36 pounds per gallon) shall be used for P.

3. Establish recordkeeping requirements adequate to determine compliance and consistent with s. NR 439.04.

(d)Additional requirements.

1. Notwithstanding s. NR 425.04(4), to demonstrate compliance under this subsection, actual emissions from all coating and printing lines participating in an internal offset must be less than or equal to allowable emissions as calculated using the equation in par. (b) 2.

2. Emission reductions from shutdowns or production curtailments or which were claimed in the state's federally approved demonstration of attainment, or any subsequent updated demonstration of attainment, may not participate in an internal offset.

3. Coating and printing lines subject to chs. NR 405, 440 or 446 to 449, or a lowest achievable emission rate (LAER) emission limitation, may participate in an internal offset under this subsection only if the owner or operator has certified, and the department has confirmed, that such lines are in compliance with all applicable requirements of those chapters or LAER.

4. Daily VOC emissions in excess of those allowed under ss. NR 422.05 to 422.15 shall be offset through an approval issued under this subsection by VOC emission reductions achieved after an application to use internal offsets has been submitted.

(e)New or modified lines. An owner or operator may include in an application under this subsection coating or printing lines constructed or modified after March 1, 1990, on which the owner or operator intends to apply coatings or inks not meeting the applicable emission limitations in ss. NR 422.05 to 422.15, and may apply such coatings or inks under an internal offset approved under this subsection if he or she demonstrates to the department's satisfaction that compliance with the applicable emission limitation on such coating or printing lines is technologically or economically infeasible.

(3) COMPLIANCE EXTENSIONS.

(a)Availability. An owner or operator of a source may request an extension to achieve compliance with the emission limitations of ss. NR 422.05 to 422.15 if the owner or operator demonstrates to the department's satisfaction that it is technologically or economically infeasible for the source to achieve compliance with the applicable emission limitations as a result of the creation of this section which became effective on March 1, 1990. The department may grant a request and authorize the owner or operator, by order issued under s. 285.13(2), Stats., to achieve compliance with the applicable emission limitation as expeditiously as practicable, but not later than March 1, 1993.

(b)Extension criteria. Authorization under par. (a) may not be granted unless the owner or operator had submitted a compliance plan for use of an internal offset under s. NR 425.04(3) prior to March 1, 1990 and had maintained records to demonstrate compliance under that subsection. In addition, the owner or operator shall submit a proposed schedule which demonstrates reasonable progress towards, and contains a date for, achieving final compliance.

Note: The reference to s. NR 425.04(3) refers to that section as it existed prior to March 1, 1990. As of March 1, 1990, the internal offset requirements of this chapter were moved from s. NR 425.04(3) to this section.

(c) Federal approval. Any compliance extension authorization under par. (a) may not become effective for federal purposes until it has met the following requirements:

2. It has been approved by the administrator or designee as a revision to the state implementation plan.

(4) ENFORCEABILITY. The emission limitations and conditions of any approval issued under this section are enforceable under s. 285.87, Stats.

Wis. Admin. Code Department of Natural Resources NR 425.05

Cr. Register, February, 1990, No. 410, eff. 3-1-90; reprinted to correct (1) (b) and (2) (b), Register, March, 1990, No. 411; correction in (2) (e) made under s. 13.93(2m) (b) 5, Stats., Register, July, 1990, No. 415; am. (2) (a) 1., Register, May, 1992, No. 437, eff. 6-1-92; r. and recr. (1) (b) 2., am. (1) (c), Register, December, 1993, No. 456, eff. 1-1-94.; am. (1) (b) 2., (1) (d) 1., (2) (b) 2., (3) (c) 1., Register, February, 1995, No. 470, eff. 3-1-95.