VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00080 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80265 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations ( 2) General provisions for Clean Units. The provisions in paragraphs ( t)( 2)( i) through ( iv) of this section apply to a Clean Unit. ( i) Any project for which the owner or operator begins actual construction after the effective date of the Clean Unit designation ( as determined in accordance with paragraph ( t)( 4) of this section) and before the expiration date ( as determined in accordance with paragraph ( t)( 5) of this section) will be considered to have occurred while the emissions unit was a Clean Unit. ( ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations or work practice requirements in the permit for the unit that were adopted in conjunction with BACT and the project would not alter any physical or operational characteristics that formed the basis for the BACT determination as specified in paragraph ( t)( 6)( iv) of this section, the emissions unit remains a Clean Unit. ( iii) If a project causes the need for a change in the emission limitations or work practice requirements in the permit for the unit that were adopted in conjunction with BACT or the project would alter any physical or operational characteristics that formed the basis for the BACT determination as specified in paragraph ( t)( 6)( iv) of this section, then the emissions unit loses its designation as a Clean Unit upon issuance of the necessary permit revisions ( unless the unit re qualifies as a Clean Unit pursuant to paragraph ( t)( 3)( iii) of this section). If the owner or operator begins actual construction on the project without first applying to revise the emissions unit's permit, the Clean Unit designation ends immediately prior to the time when actual construction begins. ( iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to the applicability requirements of paragraphs ( a)( 7)( iv)( a) through ( d) and paragraph ( a)( 7)( iv)( f) of this section as if the emissions unit is not a Clean Unit. ( 3) Qualifying or re qualifying to use the Clean Unit Applicability Test. An emissions unit automatically qualifies as a Clean Unit when the unit meets the criteria in paragraphs ( t)( 3)( i) and ( ii) of this section. After the original Clean Unit designation expires in accordance with paragraph ( t)( 5) of this section or is lost pursuant to paragraph ( t)( 2)( iii) of this section, such emissions unit may re qualify as a Clean Unit under either paragraph ( t)( 3)( iii) of this section, or under the Clean Unit provisions in paragraph ( u) of this section. To requalify as a Clean Unit under paragraph ( t)( 3)( iii) of this section, the emissions unit must obtain a new major NSR permit issued through the applicable PSD program and meet all the criteria in paragraph ( t)( 3)( iii) of this section. The Clean Unit designation applies individually for each pollutant emitted by the emissions unit. ( i) Permitting requirement. The emissions unit must have received a major NSR permit within the past 10 years. The owner or operator must maintain and be able to provide information that would demonstrate that this permitting requirement is met. ( ii) Qualifying air pollution control technologies. Air pollutant emissions from the emissions unit must be reduced through the use of air pollution control technology ( which includes pollution prevention as defined under paragraph ( b)( 38) of this section or work practices) that meets both the following requirements in paragraphs ( t)( 3)( ii)( a) and ( b) of this section. ( a) The control technology achieves the BACT or LAER level of emissions reductions as determined through issuance of a major NSR permit within the past 10 years. However, the emissions unit is not eligible for the Clean Unit designation if the BACT determination resulted in no requirement to reduce emissions below the level of a standard, uncontrolled, new emissions unit of the same type. ( b) The owner or operator made an investment to install the control technology. For the purpose of this determination, an investment includes expenses to research the application of a pollution prevention technique to the emissions unit or expenses to apply a pollution prevention technique to an emissions unit. ( iii) Re qualifying for the Clean Unit designation. The emissions unit must obtain a new major NSR permit that requires compliance with the currentday BACT ( or LAER), and the emissions unit must meet the requirements in paragraphs ( t)( 3)( i) and ( t)( 3)( ii) of this section. ( 4) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean Unit designation ( that is, the date on which the owner or operator may begin to use the Clean Unit Test to determine whether a project at the emissions unit is a major modification) is determined according to the applicable paragraph ( t)( 4)( i) or ( t)( 4)( ii) of this section. ( i) Original Clean Unit designation, and emissions units that re qualify as Clean Units by implementing a new control technology to meet current day BACT. The effective date is the date the emissions unit's air pollution control technology is placed into service, or 3 years after the issuance date of the major NSR permit, whichever is earlier, but no sooner than the date that provisions for the Clean Unit applicability test are approved by the Administrator for incorporation into the plan and become effective for the State in which the unit is located. ( ii) Emissions Units that re qualify for the Clean Unit designation using an existing control technology. The effective date is the date the new, major NSR permit is issued. ( 5) Clean Unit expiration. An emissions unit's Clean Unit designation expires ( that is, the date on which the owner or operator may no longer use the Clean Unit Test to determine whether a project affecting the emissions unit is, or is part of, a major modification) according to the applicable paragraph ( t)( 5)( i) or ( ii) of this section. ( i) Original Clean Unit designation, and emissions units that re qualify by implementing new control technology to meet current day BACT. For any emissions unit that automatically qualifies as a Clean Unit under paragraphs ( t)( 3)( i) and ( ii) of this section or re qualifies by implementing new control technology to meet currentday BACT under paragraph ( t)( 3)( iii) of this section, the Clean Unit designation expires 10 years after the effective date, or the date the equipment went into service, whichever is earlier; or, it expires at any time the owner or operator fails to comply with the provisions for maintaining the Clean Unit designation in paragraph ( t)( 7) of this section. ( ii) Emissions units that re qualify for the Clean Unit designation using an existing control technology. For any emissions unit that re qualifies as a Clean Unit under paragraph ( t)( 3)( iii) of this section using an existing control technology, the Clean Unit designation expires 10 years after the effective date; or, it expires any time the owner or operator fails to comply with the provisions for maintaining the Clean Unit designation in paragraph ( t)( 7) of this section. ( 6) Required title V permit content for a Clean Unit. After the effective date of the Clean Unit designation, and in accordance with the provisions of the applicable title V permit program under part 70 or part 71 of this chapter, but no later than when the title V permit is renewed, the title V permit for the major stationary source must include the following terms and conditions related to the Clean Unit in paragraphs ( t)( 6)( i) through ( vi) of this section. ( i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the pollutant( s) for VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00081 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80266 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations which this Clean Unit designation applies. ( ii) The effective date of the Clean Unit designation. If this date is not known when the Clean Unit designation is initially recorded in the title V permit ( e. g., because the air pollution control technology is not yet in service), the permit must describe the event that will determine the effective date ( e. g., the date the control technology is placed into service). Once the effective date is determined, the owner or operator must notify the reviewing authority of the exact date. This specific effective date must be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next renewal. ( iii) The expiration date of the Clean Unit designation. If this date is not known when the Clean Unit designation is initially recorded into the title V permit ( e. g., because the air pollution control technology is not yet in service), then the permit must describe the event that will determine the expiration date ( e. g., the date the control technology is placed into service). Once the expiration date is determined, the owner or operator must notify the reviewing authority of the exact date. The expiration date must be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next renewal. ( iv) All emission limitations and work practice requirements adopted in conjunction with BACT, and any physical or operational characteristics that formed the basis for the BACT determination ( e. g., possibly the emissions unit's capacity or throughput). ( v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the emissions unit continues to meet the criteria for maintaining the Clean Unit designation. ( See paragraph ( t)( 7) of this section.) ( vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and the consequences of failing to do so, as presented in paragraph ( t)( 7) of this section. ( 7) Maintaining the Clean Unit designation. To maintain the Clean Unit designation, the owner or operator must conform to all the restrictions listed in paragraphs ( t)( 7)( i) through ( iii) of this section. This paragraph ( t)( 7) applies independently to each pollutant for which the emissions unit has the Clean Unit designation. That is, failing to conform to the restrictions for one pollutant affects the Clean Unit designation only for that pollutant. ( i) The Clean Unit must comply with the emission limitation( s) and/ or work practice requirements adopted in conjunction with the BACT that is recorded in the major NSR permit, and subsequently reflected in the title V permit. The owner or operator may not make a physical change in or change in the method of operation of the Clean Unit that causes the emissions unit to function in a manner that is inconsistent with the physical or operational characteristics that formed the basis for the BACT determination ( e. g., possibly the emissions unit's capacity or throughput). ( ii) The Clean Unit must comply with any terms and conditions in the title V permit related to the unit's Clean Unit designation. ( iii) The Clean Unit must continue to control emissions using the specific air pollution control technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is replaced, then the Clean Unit designation ends. ( 8) Netting at Clean Units. Emissions changes that occur at a Clean Unit must not be included in calculating a significant net emissions increase ( that is, must not be used in a `` netting analysis''), unless such use occurs before the effective date of the Clean Unit designation, or after the Clean Unit designation expires; or, unless the emissions unit reduces emissions below the level that qualified the unit as a Clean Unit. However, if the Clean Unit reduces emissions below the level that qualified the unit as a Clean Unit, then the owner or operator may generate a credit for the difference between the level that qualified the unit as a Clean Unit and the new emission limitation if such reductions are surplus, quantifiable, and permanent. For purposes of generating offsets, the reductions must also be federally enforceable. For purposes of determining creditable net emissions increases and decreases, the reductions must also be enforceable as a practical matter. ( 9) Effect of redesignation on the Clean Unit designation. The Clean Unit designation of an emissions unit is not affected by redesignation of the attainment status of the area in which it is located. That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not affect the Clean Unit designation. However, if an existing Clean Unit designation expires, it must re qualify under the requirements that are currently applicable in the area. ( u) Clean Unit provisions for emissions units that achieve an emission limitation comparable to BACT. The plan shall provide an owner or operator of a major stationary source the option of using the Clean Unit Test to determine whether emissions increases at a Clean Unit are part of a project that is a major modification according to the provisions in paragraphs ( u)( 1) through ( 11) of this section. ( 1) Applicability. The provisions of this paragraph ( u) apply to emissions units which do not qualify as Clean Units under paragraph ( t) of this section, but which are achieving a level of emissions control comparable to BACT, as determined by the reviewing authority in accordance with this paragraph ( u). ( 2) General provisions for Clean Units. The provisions in paragraphs ( u)( 2)( i) through ( iv) of this section apply to a Clean Unit. ( i) Any project for which the owner or operator begins actual construction after the effective date of the Clean Unit designation ( as determined in accordance with paragraph ( u)( 5) of this section) and before the expiration date ( as determined in accordance with paragraph ( u)( 6) of this section) will be considered to have occurred while the emissions unit was a Clean Unit. ( ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations or work practice requirements in the permit for the unit that have been determined ( pursuant to paragraph ( u)( 4) of this section) to be comparable to BACT, and the project would not alter any physical or operational characteristics that formed the basis for determining that the emissions unit's control technology achieves a level of emissions control comparable to BACT as specified in paragraph ( u)( 8)( iv) of this section, the emissions unit remains a Clean Unit. ( iii) If a project causes the need for a change in the emission limitations or work practice requirements in the permit for the unit that have been determined ( pursuant to paragraph ( u)( 4) of this section) to be comparable to BACT, or the project would alter any physical or operational characteristics that formed the basis for determining that the emissions unit's control technology achieves a level of emissions control comparable to BACT as specified in paragraph ( u)( 8)( iv) of this section, then the emissions unit loses its designation as a Clean Unit upon VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00082 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80267 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations issuance of the necessary permit revisions ( unless the unit re qualifies as a Clean Unit pursuant to paragraph ( u)( 3)( iv) of this section). If the owner or operator begins actual construction on the project without first applying to revise the emissions unit's permit, the Clean Unit designation ends immediately prior to the time when actual construction begins. ( iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to the applicability requirements of paragraphs ( a)( 7)( iv)( a) through ( d) and paragraph ( a)( 7)( iv)( f) of this section as if the emissions unit is not a Clean Unit. ( 3) Qualifying or re qualifying to use the Clean Unit applicability test. An emissions unit qualifies as a Clean Unit when the unit meets the criteria in paragraphs ( u)( 3)( i) through ( iii) of this section. After the original Clean Unit designation expires in accordance with paragraph ( u)( 6) of this section or is lost pursuant to paragraph ( u)( 2)( iii) of this section, such emissions unit may requalify as a Clean Unit under either paragraph ( u)( 3)( iv) of this section, or under the Clean Unit provisions in paragraph ( t) of this section. To requalify as a Clean Unit under paragraph ( u)( 3)( iv) of this section, the emissions unit must obtain a new permit issued pursuant to the requirements in paragraphs ( u)( 7) and ( 8) of this section and meet all the criteria in paragraph ( u)( 3)( iv) of this section. The reviewing authority will make a separate Clean Unit designation for each pollutant emitted by the emissions unit for which the emissions unit qualifies as a Clean Unit. ( i) Qualifying air pollution control technologies. Air pollutant emissions from the emissions unit must be reduced through the use of air pollution control technology ( which includes pollution prevention as defined under paragraph ( b)( 38) or work practices) that meets both the following requirements in paragraphs ( u)( 3)( i)( a) and ( b) of this section. ( a) The owner or operator has demonstrated that the emissions unit's control technology is comparable to BACT according to the requirements of paragraph ( u)( 4) of this section. However, the emissions unit is not eligible for the Clean Unit designation if its emissions are not reduced below the level of a standard, uncontrolled emissions unit of the same type ( e. g., if the BACT determinations to which it is compared have resulted in a determination that no control measures are required). ( b) The owner or operator made an investment to install the control technology. For the purpose of this determination, an investment includes expenses to research the application of a pollution prevention technique to the emissions unit or to retool the unit to apply a pollution prevention technique. ( ii) Impact of emissions from the unit. The reviewing authority must determine that the allowable emissions from the emissions unit will not cause or contribute to a violation of any national ambient air quality standard or PSD increment, or adversely impact an air quality related value ( such as visibility) that has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public. ( iii) Date of installation. An emissions unit may qualify as a Clean Unit even if the control technology, on which the Clean Unit designation is based, was installed before the effective date of plan requirements to implement the requirements of this paragraph ( u)( 3)( iii). However, for such emissions units, the owner or operator must apply for the Clean Unit designation within 2 years after the plan requirements become effective. For technologies installed after the plan requirements become effective, the owner or operator must apply for the Clean Unit designation at the time the control technology is installed. ( iv) Re qualifying as a Clean Unit. The emissions unit must obtain a new permit ( pursuant to requirements in paragraphs ( u)( 7) and ( 8) of this section) that demonstrates that the emissions unit's control technology is achieving a level of emission control comparable to current day BACT, and the emissions unit must meet the requirements in paragraphs ( u)( 3)( i)( a) and ( u)( 3)( ii) of this section. ( 4) Demonstrating control effectiveness comparable to BACT. The owner or operator may demonstrate that the emissions unit's control technology is comparable to BACT for purposes of paragraph ( u)( 3)( i) of this section according to either paragraph ( u)( 4)( i) or ( ii) of this section. Paragraph ( u)( 4)( iii) of this section specifies the time for making this comparison. ( i) Comparison to previous BACT and LAER determinations. The Administrator maintains an on line data base of previous determinations of RACT, BACT, and LAER in the RACT/ BACT/ LAER Clearinghouse ( RBLC). The emissions unit's control technology is presumed to be comparable to BACT if it achieves an emission limitation that is equal to or better than the average of the emission limitations achieved by all the sources for which a BACT or LAER determination has been made within the preceding 5 years and entered into the RBLC, and for which it is technically feasible to apply the BACT or LAER control technology to the emissions unit. The reviewing authority shall also compare this presumption to any additional BACT or LAER determinations of which it is aware, and shall consider any information on achieved in practice pollution control technologies provided during the public comment period, to determine whether any presumptive determination that the control technology is comparable to BACT is correct. ( ii) The substantially as effective test. The owner or operator may demonstrate that the emissions unit's control technology is substantially as effective as BACT. In addition, any other person may present evidence related to whether the control technology is substantially as effective as BACT during the public participation process required under paragraph ( u)( 7) of this section. The reviewing authority shall consider such evidence on a case by case basis and determine whether the emissions unit's air pollution control technology is substantially as effective as BACT. ( iii) Time of comparison. ( a) Emissions units with control technologies that are installed before the effective date of plan requirements implementing this paragraph. The owner or operator of an emissions unit whose control technology is installed before the effective date of plan requirements implementing this paragraph ( u) may, at its option, either demonstrate that the emission limitation achieved by the emissions unit's control technology is comparable to the BACT requirements that applied at the time the control technology was installed, or demonstrate that the emission limitation achieved by the emissions unit's control technology is comparable to current day BACT requirements. The expiration date of the Clean Unit designation will depend on which option the owner or operator uses, as specified in paragraph ( u)( 6) of this section. ( b) Emissions units with control technologies that are installed after the effective date of plan requirements implementing this paragraph. The owner or operator must demonstrate that the emission limitation achieved by the emissions unit's control technology is comparable to current day BACT requirements. ( 5) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean Unit designation ( that is, the date on which the owner or operator may begin to use the Clean Unit Test to determine whether a project involving the emissions unit is a major VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00083 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80268 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations modification) is the date that the permit required by paragraph ( u)( 7) of this section is issued or the date that the emissions unit's air pollution control technology is placed into service, whichever is later. ( 6) Clean Unit expiration. If the owner or operator demonstrates that the emission limitation achieved by the emissions unit's control technology is comparable to the BACT requirements that applied at the time the control technology was installed, then the Clean Unit designation expires 10 years from the date that the control technology was installed. For all other emissions units, the Clean Unit designation expires 10 years from the effective date of the Clean Unit designation, as determined according to paragraph ( u)( 5) of this section. In addition, for all emissions units, the Clean Unit designation expires any time the owner or operator fails to comply with the provisions for maintaining the Clean Unit designation in paragraph ( u)( 9) of this section. ( 7) Procedures for designating emissions units as Clean Units. The reviewing authority shall designate an emissions unit a Clean Unit only by issuing a permit through a permitting program that has been approved by the Administrator and that conforms with the requirements of § § 51.160 through 51.164 of this chapter, including requirements for public notice of the proposed Clean Unit designation and opportunity for public comment. Such permit must also meet the requirements in paragraph ( u)( 8) of this section. ( 8) Required permit content. The permit required by paragraph ( u)( 7) of this section shall include the terms and conditions set forth in paragraphs ( u)( 8)( i) through ( vi). Such terms and conditions shall be incorporated into the major stationary source's title V permit in accordance with the provisions of the applicable title V permit program under part 70 or part 71 of this chapter, but no later than when the title V permit is renewed. ( i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the pollutant( s) for which the Clean Unit designation applies. ( ii) The effective date of the Clean Unit designation. If this date is not known when the reviewing authority issues the permit ( e. g., because the air pollution control technology is not yet in service), then the permit must describe the event that will determine the effective date ( e. g., the date the control technology is placed into service). Once the effective date is known, then the owner or operator must notify the reviewing authority of the exact date. This specific effective date must be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next renewal. ( iii) The expiration date of the Clean Unit designation. If this date is not known when the reviewing authority issues the permit ( e. g., because the air pollution control technology is not yet in service), then the permit must describe the event that will determine the expiration date ( e. g., the date the control technology is placed into service). Once the expiration date is known, then the owner or operator must notify the reviewing authority of the exact date. The expiration date must be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next renewal. ( iv) All emission limitations and work practice requirements adopted in conjunction with emission limitations necessary to assure that the control technology continues to achieve an emission limitation comparable to BACT, and any physical or operational characteristics that formed the basis for determining that the emissions unit's control technology achieves a level of emissions control comparable to BACT ( e. g., possibly the emissions unit's capacity or throughput). ( v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the emissions unit continues to meet the criteria for maintaining its Clean Unit designation. ( See paragraph ( u)( 9) of this section.) ( vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and the consequences of failing to do so, as presented in paragraph ( u)( 9) of this section. ( 9) Maintaining the Clean Unit designation. To maintain the Clean Unit designation, the owner or operator must conform to all the restrictions listed in paragraphs ( u)( 9)( i) through ( v) of this section. This paragraph ( u)( 9) applies independently to each pollutant for which the reviewing authority has designated the emissions unit a Clean Unit. That is, failing to conform to the restrictions for one pollutant affects the Clean Unit designation only for that pollutant. ( i) The Clean Unit must comply with the emission limitation( s) and/ or work practice requirements adopted to ensure that the control technology continues to achieve emission control comparable to BACT. ( ii) The owner or operator may not make a physical change in or change in the method of operation of the Clean Unit that causes the emissions unit to function in a manner that is inconsistent with the physical or operational characteristics that formed the basis for the determination that the control technology is achieving a level of emission control that is comparable to BACT ( e. g., possibly the emissions unit's capacity or throughput). ( iii) [ Reserved] ( iv) The Clean Unit must comply with any terms and conditions in the title V permit related to the unit's Clean Unit designation. ( v) The Clean Unit must continue to control emissions using the specific air pollution control technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is replaced, then the Clean Unit designation ends. ( 10) Netting at Clean Units. Emissions changes that occur at a Clean Unit must not be included in calculating a significant net emissions increase ( that is, must not be used in a `` netting analysis'') unless such use occurs before the effective date of plan requirements adopted to implement this paragraph ( u) or after the Clean Unit designation expires; or, unless the emissions unit reduces emissions below the level that qualified the unit as a Clean Unit. However, if the Clean Unit reduces emissions below the level that qualified the unit as a Clean Unit, then the owner or operator may generate a credit for the difference between the level that qualified the unit as a Clean Unit and the emissions unit's new emission limitation if such reductions are surplus, quantifiable, and permanent. For purposes of generating offsets, the reductions must also be federally enforceable. For purposes of determining creditable net emissions increases and decreases, the reductions must also be enforceable as a practical matter. ( 11) Effect of redesignation on the Clean Unit designation. The Clean Unit designation of an emissions unit is not affected by redesignation of the attainment designation of the area in which it is located. That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not affect the Clean Unit designation. However, if a Clean Unit's designation expires or is lost pursuant to paragraphs ( t)( 2)( iii) and ( u)( 2)( iii) of this section, it must re

VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00084 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80269 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations qualify under the requirements that are currently applicable. ( v) PCP exclusion procedural requirements. Each plan shall include provisions for PCPs equivalent to those contained in paragraphs ( v)( 1) through ( 6) of this section. ( 1) Before an owner or operator begins actual construction of a PCP, the owner or operator must either submit a notice to the reviewing authority if the project is listed in paragraphs ( b)( 31)( i) through ( vi) of this section, or if the project is not listed in paragraphs ( b)( 31)( i) through ( vi) of this section, then the owner or operator must submit a permit application and obtain approval to use the PCP exclusion from the reviewing authority consistent with the requirements in paragraph ( v)( 5) of this section. Regardless of whether the owner or operator submits a notice or a permit application, the project must meet the requirements in paragraph ( v)( 2) of this section, and the notice or permit application must contain the information required in paragraph ( v)( 3) of this section. ( 2) Any project that relies on the PCP exclusion must meet the requirements in paragraphs ( v)( 2)( i) and ( ii) of this section. ( i) Environmentally beneficial analysis. The environmental benefit from the emission reductions of pollutants regulated under the Act must outweigh the environmental detriment of emissions increases in pollutants regulated under the Act. A statement that a technology from paragraphs ( b)( 31)( i) through ( vi) of this section is being used shall be presumed to satisfy this requirement. ( ii) Air quality analysis. The emissions increases from the project will not cause or contribute to a violation of any national ambient air quality standard or PSD increment, or adversely impact an air quality related value ( such as visibility) that has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public. ( 3) Content of notice or permit application. In the notice or permit application sent to the reviewing authority, the owner or operator must include, at a minimum, the information listed in paragraphs ( v)( 3)( i) through ( v) of this section. ( i) A description of the project. ( ii) The potential emissions increases and decreases of any pollutant regulated under the Act and the projected emissions increases and decreases using the methodology in paragraph ( a)( 7)( vi) of this section, that will result from the project, and a copy of the environmentally beneficial analysis required by paragraph ( v)( 2)( i) of this section. ( iii) A description of monitoring and recordkeeping, and all other methods, to be used on an ongoing basis to demonstrate that the project is environmentally beneficial. Methods should be sufficient to meet the requirements in part 70 and part 71. ( iv) A certification that the project will be designed and operated in a manner that is consistent with proper industry and engineering practices, in a manner that is consistent with the environmentally beneficial analysis and air quality analysis required by paragraphs ( v)( 2)( i) and ( ii) of this section, with information submitted in the notice or permit application, and in such a way as to minimize, within the physical configuration and operational standards usually associated with the emissions control device or strategy, emissions of collateral pollutants. ( v) Demonstration that the PCP will not have an adverse air quality impact ( e. g., modeling, screening level modeling results, or a statement that the collateral emissions increase is included within the parameters used in the most recent modeling exercise) as required by paragraph ( v)( 2)( ii) of this section. An air quality impact analysis is not required for any pollutant that will not experience a significant emissions increase as a result of the project. ( 4) Notice process for listed projects. For projects listed in paragraphs ( b)( 31)( i) through ( vi) of this section, the owner or operator may begin actual construction of the project immediately after notice is sent to the reviewing authority ( unless otherwise prohibited under requirements of the applicable plan). The owner or operator shall respond to any requests by its reviewing authority for additional information that the reviewing authority determines is necessary to evaluate the suitability of the project for the PCP exclusion. ( 5) Permit process for unlisted projects. Before an owner or operator may begin actual construction of a PCP project that is not listed in paragraphs ( b)( 31)( i) through ( vi) of this section, the project must be approved by the reviewing authority and recorded in a plan approved permit or title V permit using procedures that are consistent with § § 51.160 and 51.161 of this chapter. This includes the requirement that the reviewing authority provide the public with notice of the proposed approval, with access to the environmentally beneficial analysis and the air quality analysis, and provide at least a 30 day period for the public and the Administrator to submit comments. The reviewing authority must address all material comments received by the end of the comment period before taking final action on the permit. ( 6) Operational requirements. Upon installation of the PCP, the owner or operator must comply with the requirements of paragraphs ( v)( 6)( i) through ( iv) of this section. ( i) General duty. The owner or operator must operate the PCP consistent with proper industry and engineering practices, in a manner that is consistent with the environmentally beneficial analysis and air quality analysis required by paragraphs ( v)( 2)( i) and ( ii) of this section, with information submitted in the notice or permit application required by paragraph ( v)( 3), and in such a way as to minimize, within the physical configuration and operational standards usually associated with the emissions control device or strategy, emissions of collateral pollutants. ( ii) Recordkeeping. The owner or operator must maintain copies on site of the environmentally beneficial analysis, the air quality impacts analysis, and monitoring and other emission records to prove that the PCP operated consistent with the general duty requirements in paragraph ( v)( 6)( i) of this section. ( iii) Permit requirements. The owner or operator must comply with any provisions in the plan approved permit or title V permit related to use and approval of the PCP exclusion. ( iv) Generation of Emission Reduction Credits. Emission reductions created by a PCP shall not be included in calculating a significant net emissions increase unless the emissions unit further reduces emissions after qualifying for the PCP exclusion ( e. g., taking an operational restriction on the hours of operation.) The owner or operator may generate a credit for the difference between the level of reduction which was used to qualify for the PCP exclusion and the new emission limitation if such reductions are surplus, quantifiable, and permanent. For purposes of generating offsets, the reductions must also be federally enforceable. For purposes of determining creditable net emissions increases and decreases, the reductions must also be enforceable as a practical matter. ( w) Actuals PALs. The plan shall provide for PALs according to the provisions in paragraphs ( w)( 1) through ( 15) of this section. ( 1) Applicability. ( i) The reviewing authority may approve the use of an actuals PAL for any existing major stationary source if VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00085 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80270 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations the PAL meets the requirements in paragraphs ( w)( 1) through ( 15) of this section. The term `` PAL'' shall mean `` actuals PAL'' throughout paragraph ( w) of this section. ( ii) Any physical change in or change in the method of operation of a major stationary source that maintains its total source wide emissions below the PAL level, meets the requirements in paragraphs ( w)( 1) through ( 15) of this section, and complies with the PAL permit: ( a) Is not a major modification for the PAL pollutant; ( b) Does not have to be approved through the plan's major NSR program; and ( c) Is not subject to the provisions in paragraph ( r)( 2) of this section ( restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the major NSR program). ( iii) Except as provided under paragraph ( w)( 1)( ii)( c) of this section, a major stationary source shall continue to comply with all applicable Federal or State requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. ( 2) Definitions. The plan shall use the definitions in paragraphs ( w)( 2)( i) through ( xi) of this section for the purpose of developing and implementing regulations that authorize the use of actuals PALs consistent with paragraphs ( w)( 1) through ( 15) of this section. When a term is not defined in these paragraphs, it shall have the meaning given in paragraph ( b) of this section or in the Act. ( i) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions ( as defined in paragraph ( b)( 47) of this section) of all emissions units ( as defined in paragraph ( b)( 7) of this section) at the source, that emit or have the potential to emit the PAL pollutant. ( ii) Allowable emissions means `` allowable emissions'' as defined in paragraph ( b)( 16) of this section, except as this definition is modified according to paragraphs ( w)( 2)( ii)( a) and ( b) of this section. ( a) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential to emit. ( b) An emissions unit's potential to emit shall be determined using the definition in paragraph ( b)( 4) of this section, except that the words `` or enforceable as a practical matter'' should be added after `` federally enforceable.'' ( iii) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in paragraph ( b)( 23) of this section or in the Act, whichever is lower. ( iv) Major emissions unit means: ( a) Any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or ( b) Any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the Act for nonattainment areas. For example, in accordance with the definition of major stationary source in section 182( c) of the Act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year. ( v) Plantwide applicability limitation ( PAL) means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter and established source wide in accordance with paragraphs ( w)( 1) through ( 15) of this section. ( vi) PAL effective date generally means the date of issuance of the PAL permit. However, the PAL effective date for an increased PAL is the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. ( vii) PAL effective period means the period beginning with the PAL effective date and ending 10 years later. ( viii) PAL major modification means, notwithstanding paragraphs ( b)( 2) and ( b)( 3) of this section ( the definitions for major modification and net emissions increase), any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. ( ix) PAL permit means the major NSR permit, the minor NSR permit, or the State operating permit under a program that is approved into the plan, or the title V permit issued by the reviewing authority that establishes a PAL for a major stationary source. ( x) PAL pollutant means the pollutant for which a PAL is established at a major stationary source. ( xi) Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level ( as defined in paragraph ( b)( 23) of this section or in the Act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit as defined in paragraph ( w)( 2)( iv) of this section. ( 3) Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information in paragraphs ( w)( 3)( i) through ( iii) of this section to the reviewing authority for approval. ( i) A list of all emissions units at the source designated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, Federal or State applicable requirements, emission limitations, or work practices apply to each unit. ( ii) Calculations of the baseline actual emissions ( with supporting documentation). Baseline actual emissions are to include emissions associated not only with operation of the unit, but also emissions associated with startup, shutdown, and malfunction. ( iii) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12 month rolling total for each month as required by paragraph ( w)( 13)( i) of this section. ( 4) General requirements for establishing PALs. ( i) The plan allows the reviewing authority to establish a PAL at a major stationary source, provided that at a minimum, the requirements in paragraphs ( w)( 4)( i)( a) through ( g) of this section are met. ( a) The PAL shall impose an annual emission limitation in tons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL ( a 12 month average, rolled monthly). For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. ( b) The PAL shall be established in a PAL permit that meets the public VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00086 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80271 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations participation requirements in paragraph ( w)( 5) of this section. ( c) The PAL permit shall contain all the requirements of paragraph ( w)( 7) of this section. ( d) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source. ( e) Each PAL shall regulate emissions of only one pollutant. ( f) Each PAL shall have a PAL effective period of 10 years. ( g) The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in paragraphs ( w)( 12) through ( 14) of this section for each emissions unit under the PAL through the PAL effective period. ( ii) At no time ( during or after the PAL effective period) are emissions reductions of a PAL pollutant that occur during the PAL effective period creditable as decreases for purposes of offsets under § 51.165( a)( 3)( ii) of this chapter unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. ( 5) Public participation requirements for PALs. PALs for existing major stationary sources shall be established, renewed, or increased, through a procedure that is consistent with § § 51.160 and 51.161 of this chapter. This includes the requirement that the reviewing authority provide the public with notice of the proposed approval of a PAL permit and at least a 30 day period for submittal of public comment. The reviewing authority must address all material comments before taking final action on the permit. ( 6) Setting the 10 year actuals PAL level. The plan shall provide that the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions ( as defined in paragraph ( b)( 47) of this section) of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under paragraph ( b)( 23) of this section or under the Act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24 month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24 month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shutdown after this 24 month period must be subtracted from the PAL level. Emissions from units on which actual construction began after the 24 month period must be added to the PAL level in an amount equal to the potential to emit of the units. The reviewing authority shall specify a reduced PAL level( s) ( in tons/ yr) in the PAL permit to become effective on the future compliance date( s) of any applicable Federal or State regulatory requirement( s) that the reviewing authority is aware of prior to issuance of the PAL permit. For instance, if the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOX to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit( s). ( 7) Contents of the PAL permit. The plan shall require that the PAL permit contain, at a minimum, the information in paragraphs ( w)( 7)( i) through ( x) of this section. ( i) The PAL pollutant and the applicable source wide emission limitation in tons per year. ( ii) The PAL permit effective date and the expiration date of the PAL ( PAL effective period). ( iii) Specification in the PAL permit that if a major stationary source owner or operator applies to renew a PAL in accordance with paragraph ( w)( 10) of this section before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a revised PAL permit is issued by the reviewing authority. ( iv) A requirement that emission calculations for compliance purposes include emissions from startups, shutdowns and malfunctions. ( v) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of paragraph ( w)( 9) of this section. ( vi) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12 month rolling total for each month as required by paragraph ( w)( 3)( i) of this section. ( vii) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under paragraph ( w)( 13) of this section. ( viii) A requirement to retain the records required under paragraph ( w)( 13) of this section on site. Such records may be retained in an electronic format. ( ix) A requirement to submit the reports required under paragraph ( w)( 14) of this section by the required deadlines. ( x) Any other requirements that the reviewing authority deems necessary to implement and enforce the PAL. ( 8) PAL effective period and reopening of the PAL permit. The plan shall require the information in paragraphs ( w)( 8)( i) and ( ii) of this section. ( i) PAL effective period. The reviewing authority shall specify a PAL effective period of 10 years. ( ii) Reopening of the PAL permit. ( a) During the PAL effective period, the plan shall require the reviewing authority to reopen the PAL permit to: ( 1) Correct typographical/ calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; ( 2) Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under § 51.165( a)( 3)( ii) of this chapter; and ( 3) Revise the PAL to reflect an increase in the PAL as provided under paragraph ( w)( 11) of this section. ( b) The plan shall provide the reviewing authority discretion to reopen the PAL permit for the following: ( 1) Reduce the PAL to reflect newly applicable Federal requirements ( for example, NSPS) with compliance dates after the PAL effective date; ( 2) Reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose on the major stationary source under the plan; and ( 3) Reduce the PAL if the reviewing authority determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an AQRV that has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public. ( c) Except for the permit reopening in paragraph ( w)( 8)( ii)( a)( 1) of this section for the correction of typographical/ calculation errors that do not increase the PAL level, all reopenings shall be carried out in accordance with the public participation requirements of paragraph ( w)( 5) of this section. ( 9) Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in paragraph ( w)( 10) of this section shall expire at the end of the PAL effective period, and the VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00087 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80272 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations requirements in paragraphs ( w)( 9)( i) through ( v) of this section shall apply. ( i) Each emissions unit ( or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the procedures in paragraphs ( w)( 9)( i)( a) and ( b) of this section. ( a) Within the time frame specified for PAL renewals in paragraph ( w)( 10)( ii) of this section, the major stationary source shall submit a proposed allowable emission limitation for each emissions unit ( or each group of emissions units, if such a distribution is more appropriate as decided by the reviewing authority) by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under paragraph ( w)( 10)( v) of this section, such distribution shall be made as if the PAL had been adjusted. ( b) The reviewing authority shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the reviewing authority determines is appropriate. ( ii) Each emissions unit( s) shall comply with the allowable emission limitation on a 12 month rolling basis. The reviewing authority may approve the use of monitoring systems ( source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation. ( iii) Until the reviewing authority issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under paragraph ( w)( 9)( i)( b) of this section, the source shall continue to comply with a source wide, multi unit emissions cap equivalent to the level of the PAL emission limitation. ( iv) Any physical change or change in the method of operation at the major stationary source will be subject to major NSR requirements if such change meets the definition of major modification in paragraph ( b)( 2) of this section. ( v) The major stationary source owner or operator shall continue to comply with any State or Federal applicable requirements ( BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to paragraph ( r)( 2) of this section, but were eliminated by the PAL in accordance with the provisions in paragraph ( w)( 1)( ii)( c) of this section. ( 10) Renewal of a PAL. ( i) The reviewing authority shall follow the procedures specified in paragraph ( w)( 5) of this section in approving any request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the reviewing authority. ( ii) Application deadline. The plan shall require that a major stationary source owner or operator shall submit a timely application to the reviewing authority to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of permit expiration. This deadline for application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. ( iii) Application requirements. The application to renew a PAL permit shall contain the information required in paragraphs ( w)( 10)( iii) ( a) through ( d) of this section. ( a) The information required in paragraphs ( w)( 3)( i) through ( iii) of this section. ( b) A proposed PAL level. ( c) The sum of the potential to emit of all emissions units under the PAL ( with supporting documentation). ( d) Any other information the owner or operator wishes the reviewing authority to consider in determining the appropriate level for renewing the PAL. ( iv) PAL adjustment. In determining whether and how to adjust the PAL, the reviewing authority shall consider the options outlined in paragraphs ( w)( 10)( iv) ( a) and ( b) of this section. However, in no case may any such adjustment fail to comply with paragraph ( w)( 10)( iv)( c) of this section. ( a) If the emissions level calculated in accordance with paragraph ( w)( 6) of this section is equal to or greater than 80 percent of the PAL level, the reviewing authority may renew the PAL at the same level without considering the factors set forth in paragraph ( w)( 10)( iv)( b) of this section; or ( b) The reviewing authority may set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the reviewing authority in its written rationale. ( c) Notwithstanding paragraphs ( w)( 10)( iv) ( a) and ( b) of this section: ( 1) If the potential to emit of the major stationary source is less than the PAL, the reviewing authority shall adjust the PAL to a level no greater than the potential to emit of the source; and ( 2) The reviewing authority shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of paragraph ( w)( 11) of this section ( increasing a PAL). ( v) If the compliance date for a State or Federal requirement that applies to the PAL source occurs during the PAL effective period, and if the reviewing authority has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first. ( 11) Increasing a PAL during the PAL effective period. ( i) The plan shall require that the reviewing authority may increase a PAL emission limitation only if the major stationary source complies with the provisions in paragraphs ( w)( 11)( i) ( a) through ( d) of this section. ( a) The owner or operator of the major stationary source shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit( s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL. ( b) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of the allowable emissions of the new or modified emissions unit( s), exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the VerDate Dec< 13> 2002 09: 34 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00088 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80273 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. ( c) The owner or operator obtains a major NSR permit for all emissions unit( s) identified in paragraph ( w)( 11)( i)( a) of this section, regardless of the magnitude of the emissions increase resulting from them ( that is, no significant levels apply). These emissions unit( s) shall comply with any emissions requirements resulting from the major NSR process ( for example, BACT), even though they have also become subject to the PAL or continue to be subject to the PAL. ( d) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. ( ii) The reviewing authority shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units ( assuming application of BACT equivalent controls as determined in accordance with paragraph ( w)( 11)( i)( b) of this section), plus the sum of the baseline actual emissions of the small emissions units. ( iii) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of paragraph ( w)( 5) of this section. ( 12) Monitoring requirements for PALs. ( i) General requirements. ( a) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. ( b) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in paragraphs ( w)( 12)( ii) ( a) through ( d) of this section and must be approved by the reviewing authority. ( c) Notwithstanding paragraph ( w)( 12)( i)( b) of this section, you may also employ an alternative monitoring approach that meets paragraph ( w)( 12)( i)( a) of this section if approved by the reviewing authority. ( d) Failure to use a monitoring system that meets the requirements of this section renders the PAL invalid. ( ii) Minimum performance requirements for approved monitoring approaches. The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in paragraphs ( w)( 12)( iii) through ( ix) of this section: ( a) Mass balance calculations for activities using coatings or solvents; ( b) CEMS; ( c) CPMS or PEMS; and ( d) Emission factors. ( iii) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: ( a) Provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; ( b) Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and ( c) Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the reviewing authority determines there is site specific data or a site specific monitoring program to support another content within the range. ( iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: ( a) CEMS must comply with applicable Performance Specifications found in 40 CFR part 60, appendix B; and ( b) CEMS must sample, analyze, and record data at least every 15 minutes while the emissions unit is operating. ( v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: ( a) The CPMS or the PEMS must be based on current site specific data demonstrating a correlation between the monitored parameter( s) and the PAL pollutant emissions across the range of operation of the emissions unit; and ( b) Each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the reviewing authority, while the emissions unit is operating. ( vi) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: ( a) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; ( b) The emissions unit shall operate within the designated range of use for the emission factor, if applicable; and ( c) If technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a sitespecific emission factor within 6 months of PAL permit issuance, unless the reviewing authority determines that testing is not required. ( vii) A source owner or operator must record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. ( viii) Notwithstanding the requirements in paragraphs ( w)( 12)( iii) through ( vii) of this section, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter( s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the reviewing authority shall, at the time of permit issuance: ( a) Establish default value( s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point( s); or ( b) Determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter( s) and the PAL pollutant emissions is a violation of the PAL. ( ix) Re validation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the reviewing authority. Such testing must occur at least once every 5 years after issuance of the PAL.

VerDate Dec< 13> 2002 17: 13 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00089 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80274 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations ( 13) Recordkeeping requirements. ( i) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of paragraph ( w) of this section and of the PAL, including a determination of each emissions unit's 12 month rolling total emissions, for 5 years from the date of such record. ( ii) The PAL permit shall require an owner or operator to retain a copy of the following records, for the duration of the PAL effective period plus 5 years: ( a) A copy of the PAL permit application and any applications for revisions to the PAL; and ( b) Each annual certification of compliance pursuant to title V and the data relied on in certifying the compliance. ( 14) Reporting and notification requirements. The owner or operator shall submit semi annual monitoring reports and prompt deviation reports to the reviewing authority in accordance with the applicable title V operating permit program. The reports shall meet the requirements in paragraphs ( w)( 14)( i) through ( iii) of this section. ( i) Semi annual report. The semiannual report shall be submitted to the reviewing authority within 30 days of the end of each reporting period. This report shall contain the information required in paragraphs ( w)( 14)( i)( a) through ( g) of this section. ( a) The identification of owner and operator and the permit number. ( b) Total annual emissions ( tons/ year) based on a 12 month rolling total for each month in the reporting period recorded pursuant to paragraph ( w)( 13)( i) of this section. ( c) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutant emissions. ( d) A list of any emissions units modified or added to the major stationary source during the preceding 6 month period. ( e) The number, duration, and cause of any deviations or monitoring malfunctions ( other than the time associated with zero and span calibration checks), and any corrective action taken. ( f) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by paragraph ( w)( 12)( vii) of this section. ( g) A signed statement by the responsible official ( as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. ( ii) Deviation report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to § 70.6( a)( 3)( iii)( B) of this chapter shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing § 70.6( a)( 3)( iii)( B) of this chapter. The reports shall contain the following information: ( a) The identification of owner and operator and the permit number; ( b) The PAL requirement that experienced the deviation or that was exceeded; ( c) Emissions resulting from the deviation or the exceedance; and ( d) A signed statement by the responsible official ( as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. ( iii) Re validation results. The owner or operator shall submit to the reviewing authority the results of any re validation test or method within three months after completion of such test or method. ( 15) Transition requirements. ( i) No reviewing authority may issue a PAL that does not comply with the requirements in paragraphs ( w)( 1) through ( 15) of this section after the Administrator has approved regulations incorporating these requirements into a plan. ( ii) The reviewing authority may supersede any PAL which was established prior to the date of approval of the plan by the Administrator with a PAL that complies with the requirements of paragraphs ( w)( 1) through ( 15) of this section. ( x) If any provision of this section, or the application of such provision to any person or circumstance, is held invalid, the remainder of this section, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. PART 52   [ AMENDED]

1. The authority citation for part 52 continues to read as follows:

Authority: 42 U. S. C. 7401, et seq.

Subpart A   [ Amended]

2. In 40 CFR 52.21( b)( 1)( i)( b) and ( b)( 5), remove the words `` any air pollutant subject to regulation under the Act,'' and add, in their place, the words `` a regulated NSR pollutant.'' 3. In addition to the amendments set forth above, section 52.21 is amended: a. By redesignating paragraph ( a) as paragraph ( a)( 1). b. By adding paragraph ( a)( 2). c. By revising paragraphs ( b)( 2)( i) and ( ii). d. By revising paragraph ( b)( 2)( iii)( h). e. By adding paragraph ( b)( 2)( iv). f. By revising paragraph ( b)( 3)( i). g. By revising paragraphs ( b)( 3)( iii) and ( iv). h. By revising paragraphs ( b)( 3)( vi)( b) and ( c). i. By adding paragraph ( b)( 3)( vi)( d). j. By adding paragraph ( b)( 3)( ix). k. By revising paragraphs ( b)( 7) and ( 8). l. By revising paragraph ( b)( 13). m. By revising paragraph ( b)( 21). n. By removing the following items from the list in paragraph ( b)( 23)( i): `` Asbestos: 0.007 tpy''; `` Beryllium: 0.0004 tpy''; `` Mercury: 0.1 tpy''; and `` Vinyl Chloride: 1 tpy''. o. By revising paragraph ( b)( 32). p. By removing and reserving paragraph ( b)( 33). q. By adding paragraphs ( b)( 39) through ( 48), adding and reserving paragraph ( b)( 49), and by adding paragraphs ( b)( 50) through ( b)( 54). r. By revising the introductory text of paragraph ( i). s. By removing paragraphs ( i)( 1) through ( 3). t. By redesignating paragraphs ( i)( 4) through ( 13) as paragraphs ( i)( 1) through ( 10). u. By removing the following items from the list in newly redesignated paragraph ( i)( 5)( i): `` Mercury   0.25 µ g/ m3, 24 hour average''; `` Beryllium   0.001 µ g/ m3, 24 hour average''; `` Vinyl chloride   15 µ g/ m3, 24 hour average''. v. By adding and reserving paragraphs ( r)( 5) and adding paragraphs ( r)( 6) through ( 7). w. By adding paragraphs ( x) through ( bb). 4. In addition to the amendments set forth above, in 40 CFR 52.21, remove the words `` pollutant subject to regulation under the Act'' and add, in their place, the words `` regulated NSR pollutant'' in the following places:

VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00090 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80275 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations a. ( b)( 1)( i)( a); b. ( b)( 2)( i); c. ( b)( 23)( ii); d. newly redesignated ( i)( 4); and e. ( j)( 2) and ( 3). The revisions and additions read as follows:

§ 52.21 Prevention of significant deterioration of air quality.

( a)( 1) Plan disapproval. * * * ( 2) Applicability procedures. ( i) The requirements of this section apply to the construction of any new major stationary source ( as defined in paragraph ( b)( 1) of this section) or any project at an existing major stationary source in an area designated as attainment or unclassifiable under sections 107( d)( 1)( A)( ii) or ( iii) of the Act. ( ii) The requirements of paragraphs ( j) through ( r) of this section apply to the construction of any new major stationary source or the major modification of any existing major stationary source, except as this section otherwise provides. ( iii) No new major stationary source or major modification to which the requirements of paragraphs ( j) through ( r)( 5) of this section apply shall begin actual construction without a permit that states that the major stationary source or major modification will meet those requirements. The Administrator has authority to issue any such permit. ( iv) The requirements of the program will be applied in accordance with the principles set out in paragraphs ( a)( 2)( iv)( a) through ( f) of this section. ( a) Except as otherwise provided in paragraphs ( a)( 2)( v) and ( vi) of this section, and consistent with the definition of major modification contained in paragraph ( b)( 2) of this section, a project is a major modification for a regulated NSR pollutant if it causes two types of emissions increases   a significant emissions increase ( as defined in paragraph ( b)( 40) of this section), and a significant net emissions increase ( as defined in paragraphs ( b)( 3) and ( b)( 23) of this section). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. ( b) The procedure for calculating ( before beginning actual construction) whether a significant emissions increase ( i. e., the first step of the process) will occur depends upon the type of emissions units being modified, according to paragraphs ( a)( 2)( iv)( c) through ( f) of this section. The procedure for calculating ( before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source ( i. e., the second step of the process) is contained in the definition in paragraph ( b)( 3) of this section. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase. ( c) Actual to projected actual applicability test for projects that only involve existing emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the projected actual emissions ( as defined in paragraph ( b)( 41) of this section) and the baseline actual emissions ( as defined in paragraphs ( b)( 48)( i) and ( ii) of this section), for each existing emissions unit, equals or exceeds the significant amount for that pollutant ( as defined in paragraph ( b)( 23) of this section). ( d) Actual to potential test for projects that only involve construction of a new emissions unit( s). A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the difference between the potential to emit ( as defined in paragraph ( b)( 4) of this section) from each new emissions unit following completion of the project and the baseline actual emissions ( as defined in paragraph ( b)( 48)( iii) of this section) of these units before the project equals or exceeds the significant amount for that pollutant ( as defined in paragraph ( b)( 23) of this section). ( e) Emission test for projects that involve Clean Units. For a project that will be constructed and operated at a Clean Unit without causing the emissions unit to lose its Clean Unit designation, no emissions increase is deemed to occur. ( f) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in paragraphs ( a)( 2)( iv)( c) through ( e) of this section as applicable with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant ( as defined in paragraph ( b)( 23) of this section). For example, if a project involves both an existing emissions unit and a Clean Unit, the projected increase is determined by summing the values determined using the method specified in paragraph ( a)( 2)( iv)( c) of this section for the existing unit and using the method specified in paragraph ( a)( 2)( iv)( e) of this section for the Clean Unit. ( v) For any major stationary source for a PAL for a regulated NSR pollutant, the major stationary source shall comply with the requirements under paragraph ( aa) of this section. ( vi) An owner or operator undertaking a PCP ( as defined in paragraph ( b)( 32) of this section) shall comply with the requirements under paragraph ( z) of this section. * * * * * ( b) * * * ( 2)( i) Major modification means any physical change in or change in the method of operation of a major stationary source that would result in: a significant emissions increase ( as defined in paragraph ( b)( 40) of this section) of a regulated NSR pollutant ( as defined in paragraph ( b)( 50) of this section); and a significant net emissions increase of that pollutant from the major stationary source. ( ii) Any significant emissions increase ( as defined in paragraph ( b)( 40) of this section) from any emissions units or net emissions increase ( as defined in paragraph ( b)( 3) of this section) at a major stationary source that is significant for volatile organic compounds shall be considered significant for ozone. ( iii) * * * ( h) The addition, replacement, or use of a PCP, as defined in paragraph ( b)( 32) of this section, at an existing emissions unit meeting the requirements of paragraph ( z) of this section. A replacement control technology must provide more effective emission control than that of the replaced control technology to qualify for this exclusion. * * * * * ( iv) This definition shall not apply with respect to a particular regulated NSR pollutant when the major stationary source is complying with the requirements under paragraph ( aa) of this section for a PAL for that pollutant. Instead, the definition at paragraph ( aa)( 2)( viii) of this section shall apply. ( 3)( i) Net emissions increase means, with respect to any regulated NSR pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero: ( a) The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated pursuant to paragraph ( a)( 2)( iv) of this section; and ( b) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable.

VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00091 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80276 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations Baseline actual emissions for calculating increases and decreases under this paragraph ( b)( 3)( i)( b) shall be determined as provided in paragraph ( b)( 48) of this section, except that paragraphs ( b)( 48)( i)( c) and ( b)( 48)( ii)( d) of this section shall not apply. * * * * * ( iii) An increase or decrease in actual emissions is creditable only if: ( a) The Administrator or other reviewing authority has not relied on it in issuing a permit for the source under this section, which permit is in effect when the increase in actual emissions from the particular change occurs; and ( b) The increase or decrease in emissions did not occur at a Clean Unit except as provided in paragraphs ( x)( 8) and ( y)( 10) of this section. ( iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs before the applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. * * * * * ( vi) * * * ( b) It is enforceable as a practical matter at and after the time that actual construction on the particular change begins. ( c) It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change; and ( d) The decrease in actual emissions did not result from the installation of add on control technology or application of pollution prevention practices that were relied on in designating an emissions unit as a Clean Unit under paragraph ( y) of this section or under regulations approved pursuant to § 51.165( d) or to § 51.166( u) of this chapter. That is, once an emissions unit has been designated as a Clean Unit, the owner or operator cannot later use the emissions reduction from the air pollution control measures that the designation is based on in calculating the net emissions increase for another emissions unit ( i. e., must not use that reduction in a `` netting analysis'' for another emissions unit). However, any new emission reductions that were not relied upon in a PCP excluded pursuant to paragraph ( z) of this section or for a Clean Unit designation are creditable to the extent they meet the requirements in paragraph ( z)( 6)( iv) of this section for the PCP and paragraphs ( x)( 8) or ( y)( 10) of this section for a Clean Unit. * * * * * ( ix) Paragraph ( b)( 21)( ii) of this section shall not apply for determining creditable increases and decreases. ( 7) Emissions unit means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant and includes an electric utility steam generating unit as defined in paragraph ( b)( 31) of this section. For purposes of this section, there are two types of emissions units as described in paragraphs ( b)( 7)( i) and ( ii) of this section. ( i) A new emissions unit is any emissions unit that is ( or will be) newly constructed and that has existed for less than 2 years from the date such emissions unit first operated. ( ii) An existing emissions unit is any emissions unit that does not meet the requirements in paragraph ( b)( 7)( i) of this section. ( 8) Construction means any physical change or change in the method of operation ( including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in emissions. * * * * * ( 13)( i) Baseline concentration means that ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include: ( a) The actual emissions, as defined in paragraph ( b)( 21) of this section, representative of sources in existence on the applicable minor source baseline date, except as provided in paragraph ( b)( 13)( ii) of this section; and ( b) The allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date. ( ii) The following will not be included in the baseline concentration and will affect the applicable maximum allowable increase( s): ( a) Actual emissions, as defined in paragraph ( b)( 21) of this section, from any major stationary source on which construction commenced after the major source baseline date; and ( b) Actual emissions increases and decreases, as defined in paragraph ( b)( 21) of this section, at any stationary source occurring after the minor source baseline date. * * * * * ( 21)( i) Actual emissions means the actual rate of emissions of a regulated NSR pollutant from an emissions unit, as determined in accordance with paragraphs ( b)( 21)( ii) through ( iv) of this section, except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under paragraph ( aa) of this section. Instead, paragraphs ( b)( 41) and ( b)( 48) of this section shall apply for those purposes. ( ii) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive 24 month period which precedes the particular date and which is representative of normal source operation. The Administrator shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. ( iii) The Administrator may presume that source specific allowable emissions for the unit are equivalent to the actual emissions of the unit. ( iv) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. * * * * * ( 32) Pollution control project ( PCP) means any activity, set of work practices or project ( including pollution prevention as defined under paragraph ( b)( 39) of this section) undertaken at an existing emissions unit that reduces emissions of air pollutants from such unit. Such qualifying activities or projects can include the replacement or upgrade of an existing emissions control technology with a more effective unit. Other changes that may occur at the source are not considered part of the PCP if they are not necessary to reduce emissions through the PCP. Projects listed in paragraphs ( b)( 32)( i) through ( vi) of this section are presumed to be environmentally beneficial pursuant to paragraph ( z)( 2)( i) of this section. Projects not listed in these paragraphs may qualify for a case specific PCP exclusion pursuant to the requirements of paragraphs ( z)( 2) and ( z)( 5) of this section. ( i) Conventional or advanced flue gas desulfurization or sorbent injection for control of SO2. ( ii) Electrostatic precipitators, baghouses, high efficiency multiclones, or scrubbers for control of particulate matter or other pollutants. ( iii) Flue gas recirculation, low NOX burners or combustors, selective non

VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00092 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80277 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations catalytic reduction, selective catalytic reduction, low emission combustion ( for IC engines), and oxidation/ absorption catalyst for control of NOX. ( iv) Regenerative thermal oxidizers, catalytic oxidizers, condensers, thermal incinerators, hydrocarbon combustion flares, biofiltration, absorbers and adsorbers, and floating roofs for storage vessels for control of volatile organic compounds or hazardous air pollutants. For the purpose of this section, `` hydrocarbon combustion flare'' means either a flare used to comply with an applicable NSPS or MACT standard ( including uses of flares during startup, shutdown, or malfunction permitted under such a standard), or a flare that serves to control emissions of waste streams comprised predominately of hydrocarbons and containing no more than 230 mg/ dscm hydrogen sulfide. ( v) Activities or projects undertaken to accommodate switching ( or partially switching) to an inherently less polluting fuel, to be limited to the following fuel switches: ( a) Switching from a heavier grade of fuel oil to a lighter fuel oil, or any grade of oil to 0.05 percent sulfur diesel ( i. e., from a higher sulfur content # 2 fuel or from # 6 fuel, to CA 0.05 percent sulfur # 2 diesel); ( b) Switching from coal, oil, or any solid fuel to natural gas, propane, or gasified coal; ( c) Switching from coal to wood, excluding construction or demolition waste, chemical or pesticide treated wood, and other forms of `` unclean'' wood; ( d) Switching from coal to # 2 fuel oil ( 0.5 percent maximum sulfur content); and ( e) Switching from high sulfur coal to low sulfur coal ( maximum 1.2 percent sulfur content). ( vi) Activities or projects undertaken to accommodate switching from the use of one ozone depleting substance ( ODS) to the use of a substance with a lower or zero ozone depletion potential ( ODP,) including changes to equipment needed to accommodate the activity or project, that meet the requirements of paragraphs ( b)( 32)( vi)( a) and ( b) of this section. ( a) The productive capacity of the equipment is not increased as a result of the activity or project. ( b) The projected usage of the new substance is lower, on an ODP weighted basis, than the baseline usage of the replaced ODS. To make this determination, follow the procedure in paragraphs ( b)( 32)( vi)( b)( 1) through ( 4) of this section. ( 1) Determine the ODP of the substances by consulting 40 CFR part 82, subpart A, appendices A and B. ( 2) Calculate the replaced ODPweighted amount by multiplying the baseline actual usage ( using the annualized average of any 24 consecutive months of usage within the past 10 years) by the ODP of the replaced ODS. ( 3) Calculate the projected ODPweighted amount by multiplying the projected actual usage of the new substance by its ODP. ( 4) If the value calculated in paragraph ( b)( 32)( vi)( b)( 2) of this section is more than the value calculated in paragraph ( b)( 32)( vi)( b)( 3) of this section, then the projected use of the new substance is lower, on an ODPweighted basis, than the baseline usage of the replaced ODS. ( 33) [ Reserved] * * * * * ( 39) Pollution prevention means any activity that through process changes, product reformulation or redesign, or substitution of less polluting raw materials, eliminates or reduces the release of air pollutants ( including fugitive emissions) and other pollutants to the environment prior to recycling, treatment, or disposal; it does not mean recycling ( other than certain `` in process recycling'' practices), energy recovery, treatment, or disposal. ( 40) Significant emissions increase means, for a regulated NSR pollutant, an increase in emissions that is significant ( as defined in paragraph ( b)( 23) of this section) for that pollutant. ( 41)( i) Projected actual emissions means the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated NSR pollutant in any one of the 5 years ( 12 month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit that regulated NSR pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. ( ii) In determining the projected actual emissions under paragraph ( b)( 41)( i) of this section ( before beginning actual construction), the owner or operator of the major stationary source: ( a) Shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the State or Federal regulatory authorities, and compliance plans under the approved State Implementation Plan; and ( b) Shall include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions; and ( c) Shall exclude, in calculating any increase in emissions that results from he particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24 month period used to establish the baseline actual emissions under paragraph ( b)( 48) of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth; or ( d) In lieu of using the method set out in paragraphs ( a)( 41)( ii)( a) through ( c) of this section, may elect to use the emissions unit's potential to emit, in tons per year, as defined under paragraph ( b)( 4) of this section. ( 42) Clean Unit means any emissions unit that has been issued a major NSR permit that requires compliance with BACT or LAER, is complying with such BACT/ LAER requirements, and qualifies as a Clean Unit pursuant to paragraph ( x) of this section; or any emissions unit that has been designated by the Administrator as a Clean Unit, based on the criteria in paragraphs ( y)( 3)( i) through ( iv) of this section; or any emissions unit that has been issued a major NSR permit that requires compliance with BACT or LAER, is complying with such BACT/ LAER requirements, and qualifies as a Clean Unit pursuant to regulations approved into the State Implementation Plan in accordance with § 51.165( c) or § 51.166( u) of this chapter; or any emissions unit that has been designated by the reviewing authority as a Clean Unit in accordance with regulations approved into the plan to carry out § 51.165( d) or § 51.166( u) of this chapter. ( 43) Prevention of Significant Deterioration ( PSD) program means the EPA implemented major source preconstruction permit programs under this section or a major source preconstruction permit program that has been approved by the Administrator and incorporated into the State Implementation Plan pursuant to § 51.166 of this chapter to implement the requirements of that section. Any permit issued under such a program is a major NSR permit.

VerDate Dec< 13> 2002 09: 09 Dec 30, 2002 Jkt 200001 PO 00000 Frm 00093 Fmt 4701 Sfmt 4700 E:\ FR\ FM\ 31DER3. SGM 31DER3 80278 Federal Register / Vol. 67, No. 251 / Tuesday, December 31, 2002 / Rules and Regulations ( 44) Continuous emissions monitoring system ( CEMS) means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition ( if applicable), analyze, and provide a record of emissions on a continuous basis. ( 45) Predictive emissions monitoring system ( PEMS) means all of the equipment necessary to monitor process and control device operational parameters ( for example, control device secondary voltages and electric currents) and other information ( for example, gas flow rate, O2 or CO2 concentrations), and calculate and record the mass emissions rate ( for example, lb/ hr) on a continuous basis. ( 46) Continuous parameter monitoring system ( CPMS) means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters ( for example, control device secondary voltages and electric currents) and other information ( for example, gas flow rate, O2 or CO2 concentrations), and to record average operational parameter value( s) on a continuous basis. ( 47) Continuous emissions rate monitoring system ( CERMS) means the total equipment required for the determination and recording of the pollutant mass emissions rate ( in terms of mass per unit of time). ( 48) Baseline actual emissions means the rate of emissions, in tons per year, of a regulated NSR pollutant, as determined in accordance with paragraphs ( b)( 48)( i) through ( iv) of this section. ( i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24 month period selected by the owner or operator within the 5 year period immediately preceding when the owner or operator begins actual construction of the project. The Administrator shall allow the use of a different time period upon a determination that it is more representative of normal source operation. ( a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. ( b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24 month period. ( c) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24 month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24 month period can be used For each regulated NSR pollutant. ( d) The average rate shall not be based on any consecutive 24 month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by paragraph ( b)( 48)( i)( b) of this section. ( ii) For an existing emissions unit ( other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24 month period selected by the owner or operator within the 10 year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the Administrator for a permit required under this section or by the reviewing authority for a permit required by a plan, whichever is earlier, except that the 10 year period shall not include any period earlier than November 15, 1990. ( a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. ( b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24 month period. ( c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24 month period. However, if an emission limitation is part of a maximum achievable control technology standard that the Administrator proposed or promulgated under part 63 of this chapter, the baseline actual emissions need only be adjusted if the State has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of § 51.165( a)( 3)( ii)( G) of this chapter. ( d) For a regulated NSR pollutant, when a project involves multiple emissions units, only one consecutive 24 month period must be used to determine the baseline actual emissions for all the emissions units being changed. A different consecutive 24 month period can be used For each regulated NSR pollutant. ( e) The average rate shall not be based on any consecutive 24 month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by paragraphs ( b)( 48)( ii)( b) and ( c) of this section. ( iii) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. ( iv) For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in paragraph ( b)( 48)( i) of this section, for other existing emissions units in accordance with the procedures contained in paragraph ( b)( 48)( ii) of this section, and for a new emissions unit in accordance with the procedures contained in paragraph ( b)( 48)( iii) of this section. ( 49) [ Reserved] ( 50) Regulated NSR pollutant, for purposes of this section, means the following: ( i) Any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified by the Administrator ( e. g., volatile organic compounds are precursors for ozone); ( ii) Any pollutant that is subject to any standard promulgated under section 111 of the Act; ( iii) Any Class I or II substance subject to a standard promulgated under or established by title VI of the Act; or ( iv) Any pollutant that otherwise is subject to regulation under the Act; except that any or all hazardous air pollutants either listed in section 112 of the Act or added to the list pursuant to section 112( b)( 2) of the Act, which have not been delisted pursuant to section 112( b)( 3) of the Act, are not regulated NSR pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under section 108 of the Act.