located at a major stationary source that belongs to one of the listed
source categories.
    (iv) If the unit is an existing electric utility steam generating
unit, the owner or operator shall submit a report to the reviewing
authority within 60 days after the end of each year during which
records must be generated under paragraph (r)(6)(iii) of this section
setting out the unit's annual emissions, as monitored pursuant to
paragraph (r)(6)(iii) of this section, during the calendar year that
preceded submission of the report.
* * * * *
    (w) * * *
    (4) * * *
    (i) * * *
    (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, regardless of
whether the emissions unit or major stationary source belongs to one of
the source categories listed in paragraph (b)(1)(iii) of this section.
* * * * *

Appendix S to Part 51--[Amended]

0
4. Appendix S to Part 51 is amended as follows:
0
a. By adding paragraph II.A.5(vii).
0
b. By revising paragraph II.A.6(iii).
0
c. By revising paragraph II.A.9.
0
d. By revising paragraphs II.A.24(ii)(b) and II.A.24(ii)(d).
0
e. By revising paragraphs II.A.30(i)(a), II.A.30(ii)(a), II.A.30(iii),
and II.A.30(iv).
0
f. By removing and reserving paragraph II.F.

0
g. By revising paragraph IV.I.1(ii).
0
h. By revising paragraphs IV.J.3. and IV.J.4.
0
i. By revising paragraph IV.K.4(i)(d).

Appendix S to Part 51--Emission Offset Interpretative Ruling

* * * * *
    II. * * *
    A. * * *
    5. * * *
    (vii) Fugitive emissions shall not be included in determining
for any of the purposes of this Ruling whether a physical change in
or change in the method of operation of a major stationary source is
a major modification, unless the source belongs to one of the source
categories listed in paragraph II.A.4(iii) of this Ruling.
    6. * * *
    (iii) An increase or decrease in actual emissions is creditable
only if:
    (a) The reviewing authority has not relied on it in issuing a
permit for the source under this Ruling, which permit is in effect
when the increase in actual emissions from the particular change
occurs; and
    (b) As it pertains to an increase or decrease in fugitive
emissions (to the extent quantifiable), it occurs at an emissions
unit that is part of one of the source categories listed in
paragraph II.A.4(iii) of this Ruling or it occurs at an emissions
unit that is located at a major stationary source that belongs to
one of the listed source categories.
* * * * *
    9. Fugitive emissions means those emissions which could not
reasonably pass through a stack, chimney, vent or other functionally
equivalent opening. Fugitive emissions, to the extent quantifiable,
are addressed as follows for the purposes of this Ruling:
    (i) In determining whether a stationary source or modification
is major, fugitive emissions from an emissions unit are included
only if the emissions unit is part of one of the source categories
listed in paragraph II.A.4(iii) of this Ruling or the emissions unit
is located at a stationary source that belongs to one of the source
categories listed in paragraph II.A.4(iii) of this Ruling. (See
paragraphs II.A.4(iii) and II.A.5(vii) of this Ruling.)
    (ii) For purposes of determining the net emissions increase
associated with a project, an increase or decrease in fugitive
emissions is creditable only if it occurs at an emissions unit that
is part of one of the source categories listed in paragraph
II.A.4(iii) of this Ruling or if the emission unit is located at a
major stationary source that belongs to one of the listed source
categories. Fugitive emission increases or decreases are not
included for those emissions units located at a facility whose
primary activity is not represented by one of the source categories
listed in paragraph II.A.4(iii) of this Ruling and that are not, by
themselves, part of a listed source category. (See paragraph
II.A.6(iii) of this Ruling.)
    (iii) For purposes of determining the projected actual emissions
of an emissions unit after a project, fugitive emissions are
included only if the emissions unit is part of one of the source
categories listed in paragraph II.A.4(iii) of this Ruling or if the
emission unit is located at a major stationary source that belongs
to one of the listed source categories. Fugitive emissions are not
included for those emissions units located at a facility whose
primary activity is not represented by one of the source categories
listed in paragraph II.A.4(iii) of this Ruling and that are not, by
themselves, part of a listed source category. (See paragraph
II.A.24(ii)(b) of this Ruling.)
    (iv) For purposes of determining the baseline actual emissions
of an emissions unit, fugitive emissions are included only if the
emissions unit is part of one of the source categories listed in
paragraph II.A.4(iii) of this Ruling or if the emission unit is
located at a major stationary source that belongs to one of the
listed source categories, except that, for a PAL, fugitive emissions
shall be included regardless of the source category. With the
exception of PALs, fugitive emissions are not included for those
emissions units located at a facility whose primary activity is not
represented by one of the source categories listed in paragraph
II.A.4(iii) of this Ruling and that are not, by themselves, part of
a listed source category. (See paragraphs II.A.30(i)(a),
II.A.30(ii)(a), II.A.30(iii), and II.A.30(iv) of this Ruling.)
    (v) In calculating whether a project will cause a significant
emissions increase, fugitive emissions are included only for those
emissions units that are part of one of the source categories listed
in paragraph II.A.4(iii) of this Ruling, or for any emissions units
that are located at a major stationary source that belongs to one of
the listed source categories. Fugitive emissions are not included
for those emissions units located at a facility whose primary
activity is not represented by one of the source categories listed
in paragraph II.A.4(iii) of this Ruling and that are not, by
themselves, part of a listed source category. (See paragraph
IV.I.1(ii) of this Ruling.)
    (vi) For purposes of monitoring and reporting emissions from a
project after normal operations have been resumed, fugitive
emissions are included only for those emissions units that are part
of one of the source categories listed in paragraph II.A.4(iii) of
this Ruling, or for any emissions units that are located at a major
stationary source that belongs to one of the listed source
categories. Fugitive emissions are not included for those emissions
units located at a facility whose primary activity is not
represented by one of the source categories listed in paragraph
II.A.4(iii) of this Ruling and that are not, by themselves, part of
a listed source category. (See paragraphs IV.J.3 and IV.J.4 of this
Ruling.)
    (vii) For all other purposes of this Ruling, fugitive emissions
are treated in the same manner as other, non-fugitive emissions.
This includes, but is not limited to, the treatment of fugitive
emissions for offsets (see paragraph IV.C of this Ruling) and for
PALs (see paragraph IV.K.4(i)(d) of this Ruling).
* * * * *
    24. * * *
    (ii) * * *
    (b) Shall include emissions associated with startups, shutdowns,
and malfunctions; and, for an emissions unit that is part of one of
the source categories listed in paragraph II.A.4(iii) of this Ruling
or for an emissions unit that is located at a major stationary
source that belongs to one of the listed source categories, shall
include fugitive emissions (to the extent quantifiable); and
* * * * *
    (d) In lieu of using the method set out in paragraphs
II.A.24(ii)(a) through (c) of this Ruling, may elect to use the
emissions unit's potential to emit, in tons per year, as defined
under paragraph II.A.3 of this Ruling. For this purpose, if the
emissions unit is part of one of the source categories listed in
paragraph II.A.4(iii) of this Ruling or if the emissions unit is
located at a major stationary source that belongs to one of the
listed source categories, the unit's potential to emit shall include
fugitive emissions (to the extent quantifiable).
* * * * *
    30. * * *
    (i) * * *
    (a) The average rate shall include emissions associated with
startups, shutdowns, and malfunctions; and, for an emissions unit
that is part of one of the source categories listed in paragraph
II.A.4(iii) of this Ruling or for an emissions unit that is located
at a major stationary source that belongs to one of the listed
source categories, shall include fugitive emissions (to the extent
quantifiable).
* * * * *
    (ii) * * *
    (a) The average rate shall include emissions associated with
startups, shutdowns, and malfunctions; and, for an emissions unit
that is part of one of the source categories listed in paragraph
II.A.4(iii) of this Ruling or for an emissions unit that is located
at a major stationary source that belongs to one of the listed
source categories, shall include fugitive emissions (to the extent
quantifiable).
* * * * *
    (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. In the latter case, fugitive emissions, to the
extent quantifiable, shall be included only if the emissions unit is
part of one of the source categories listed in paragraph II.A.4(iii)
of this Ruling or if the emissions unit is located at a major
stationary source that belongs to one of the listed source
categories.
    (iv) For a PAL for a major stationary source, the baseline
actual emissions shall be calculated for existing electric utility
steam generating units in accordance with the procedures contained
in paragraph II.A.30(i) of this Ruling, for other existing emissions
units in accordance with the procedures contained in paragraph
II.A.30(ii) of this Ruling, and for a new emissions unit in
accordance with the procedures contained in paragraph II.A.30(iii)
of this Ruling, except that fugitive emissions (to the extent

quantifiable) shall be included regardless of the source category.
* * * * *
    F. [Reserved]
* * * * *
    IV. * * *
    I. * * *
    1. * * *
    (ii) 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 II.I.1(iii)
through (v) of this Ruling. For these calculations, fugitive
emissions (to the extent quantifiable) are included only if the
emissions unit is part of one of the source categories listed in
paragraph II.A.4(iii) of this Ruling or if the emissions unit is
located at a major stationary source that belongs to one of the
listed source categories. 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
II.A.6 of this Ruling. Regardless of any such preconstruction
projections, a major modification results if the project causes a
significant emissions increase and a significant net emissions
increase.
* * * * *
    J. * * *
    3. The owner or operator shall monitor the emissions of any
regulated NSR pollutant that could increase as a result of the
project and that is emitted by any emissions units identified in
paragraph IV.J.1(ii) of this Ruling; and calculate and maintain a
record of the annual emissions, in tons per year on a calendar year
basis, for a period of 5 years following resumption of regular
operations after the change, or for a period of 10 years following
resumption of regular operations after the change if the project
increases the design capacity or potential to emit of that regulated
NSR pollutant at such emissions unit. For purposes of this paragraph
IV.J.3, fugitive emissions (to the extent quantifiable) shall be
monitored if the emissions unit is part of one of the source
categories listed in paragraph II.A.4(iii) of this Ruling or if the
emissions unit is located at a major stationary source that belongs
to one of the listed source categories.
    4. If the unit is an existing electric utility steam generating
unit, the owner or operator shall submit a report to the reviewing
authority within 60 days after the end of each year during which
records must be generated under paragraph IV.J.3 of this Ruling
setting out the unit's annual emissions, as monitored pursuant to
paragraph IV.J.3 of this Ruling, during the year that preceded
submission of the report.
* * * * *
    K. * * *
    4. * * *
    (i) * * *
    (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,
regardless of whether the emissions unit or major stationary source
belongs to one of the source categories listed in paragraph
II.A.4(iii) of this Ruling.
* * * * *

PART 52--[AMENDED]

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

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

Subpart A--[Amended]

0
6. Section 52.21 is amended as follows:
0
a. By revising paragraph (a)(2)(iv)(b).
0
b. By adding paragraph (b)(2)(v).
0
c. By removing the period at the end of paragraph (b)(3)(iii)(b) and
adding ``; and'' in its place.
0
d. By adding paragraph (b)(3)(iii)(c).
0
e. By revising paragraph (b)(20).
0
f. By revising paragraphs (b)(41)(ii)(b) and (b)(41)(ii)(d).
0
g. By revising paragraphs (b)(48)(i)(a), (b)(48)(ii)(a), (b)(48)(iii),
and (b)(48)(iv).
0
h. By removing and reserving paragraph (i)(1)(vii).
0
i. By revising paragraphs (r)(6)(iii) and (r)(6)(iv).
0
j. By revising paragraph (aa)(4)(i)(d).

Sec.  52.21  Prevention of significant deterioration of air quality.

    (a) * * *
    (2) * * *
    (iv) * * *
    (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. For these calculations, fugitive emissions (to the
extent quantifiable) are included only if the emissions unit is part of
one of the source categories listed in paragraph (b)(1)(iii) of this
section or if the emission unit is located at a major stationary source
that belongs to one of the listed source categories. Fugitive emissions
are not included for those emissions units located at a facility whose
primary activity is not represented by one of the source categories
listed in paragraph (b)(1)(iii) of this section and that are not, by
themselves, part of a listed source category. 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.
* * * * *
    (b) * * *
    (2) * * *
    (v) Fugitive emissions shall not be included in determining for any
of the purposes of this section whether a physical change in or change
in the method of operation of a major stationary source is a major
modification, unless the source belongs to one of the source categories
listed in paragraph (b)(1)(iii) of this section.
    (3) * * *
    (iii) * * *
    (c) As it pertains to an increase or decrease in fugitive emissions
(to the extent quantifiable), it occurs at an emissions unit that is
part of one of the source categories listed in paragraph (b)(1)(iii) of
this section or it occurs at an emission unit that is located at a
major stationary source that belongs to one of the listed source
categories.
* * * * *
    (20) Fugitive emissions means those emissions which could not
reasonably pass through a stack, chimney, vent, or other functionally
equivalent opening. Fugitive emissions, to the extent quantifiable, are
addressed as follows for the purposes of this section:
    (i) In calculating whether a project will cause a significant
emissions increase, fugitive emissions are included only for those
emissions units that are part of one of the source categories listed in
paragraph (b)(1)(iii) of this section, or for any emissions units that
are located at a major stationary source that belongs to one of the
listed source categories. Fugitive emissions are not included for those
emissions units located at a facility whose primary activity is not
represented by one of the source categories listed in paragraph
(b)(1)(iii) of this section and that are not, by themselves, part of a
listed source category. (See paragraph (a)(2)(iv)(b) of this section.)
    (ii) In determining whether a stationary source or modification is
major, fugitive emissions from an emissions unit are included only if
the emissions unit is part of one of the source categories listed in
paragraph (b)(1)(iii) of this section or if the emission unit is
located at a stationary source that belongs to one of the source
categories listed in paragraph (b)(1)(iii) of this section. Fugitive
emissions are not included for those emissions units located at a
facility whose primary activity is not represented by one of the source
categories listed in paragraph

(b)(1)(iii) of this section and that are not, by themselves, part of a
listed source category. (See paragraphs (b)(1)(iii) and (b)(2)(v) of
this section.)
    (iii) For purposes of determining the net emissions increase
associated with a project, an increase or decrease in fugitive
emissions is creditable only if it occurs at an emissions unit that is
part of one of the source categories listed in paragraph (b)(1)(iii) of
this section or if the emission unit is located at a major stationary
source that belongs to one of the listed source categories. Fugitive
emission increases or decreases are not included for those emissions
units located at a facility whose primary activity is not represented
by one of the source categories listed in paragraph (b)(1)(iii) of this
section and that are not, by themselves, part of a listed source
category. (See paragraph (b)(3)(iii)(c) of this section.)
    (iv) For purposes of determining the projected actual emissions of
an emissions unit after a project, fugitive emissions are included only
if the emissions unit is part of one of the source categories listed in
paragraph (b)(1)(iii) of this section or if the emission unit is
located at a major stationary source that belongs to one of the listed
source categories. Fugitive emissions are not included for those
emissions units located at a facility whose primary activity is not
represented by one of the source categories listed in paragraph
(b)(1)(iii) of this section and that are not, by themselves, part of a
listed source category. (See paragraph (b)(41)(ii)(b) and (d) of this
section.
    (v) For purposes of determining the baseline actual emissions of an
emissions unit, fugitive emissions are included only if the emissions
unit is part of one of the source categories listed in paragraph
(b)(1)(iii) of this section or if the emission unit is located at a
major stationary source that belongs to one of the listed source
categories, except that, for a PAL, fugitive emissions shall be
included regardless of the source category. With the exception of PALs,
fugitive emissions are not included for those emissions units located
at a facility whose primary activity is not represented by one of the
source categories listed in paragraph (b)(1)(iii) of this section and
that are not, by themselves, part of a listed source category. (See
paragraphs (b)(48)(i)(a), (b)(48)(ii)(a), (b)(48)(iii), and (b)(48)(iv)
of this section.)
    (vi) For purposes of monitoring and reporting emissions from a
project after normal operations have been resumed, fugitive emissions
are included only for those emissions units that are part of one of the
source categories listed in paragraph (b)(1)(iii) of this section, or
for any emissions units that are located at a major stationary source
that belongs to one of the listed source categories. Fugitive emissions
are not included for those emissions units located at a facility whose
primary activity is not represented by one of the source categories
listed in paragraph (b)(1)(iii) of this section and that are not, by
themselves, part of a listed source category. (See paragraphs
(r)(6)(iii) and (iv) of this section.)
    (vii) For all other purposes of this section, fugitive emissions
are treated in the same manner as other, non-fugitive emissions. This
includes, but is not limited to, the treatment of fugitive emissions
for the application of best available control technology (see paragraph
(j) of this section), source impact analysis (see paragraph (k) of this
section), additional impact analyses (see paragraph (o) of this
section), and PALs (see paragraph (aa)(4)(i)(d) of this section).
* * * * *
    (41) * * *
    (ii) * * *
    (b) Shall include emissions associated with startups, shutdowns,
and malfunctions; and, for an emissions unit that is part of one of the
source categories listed in paragraph (b)(1)(iii) of this section or
for an emissions unit that is located at a major stationary source that
belongs to one of the listed source categories, shall include fugitive
emissions (to the extent quantifiable); and
* * * * *
    (d) In lieu of using the method set out in paragraphs
(b)(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. For this purpose, if the emissions
unit is part of one of the source categories listed in paragraph
(b)(1)(iii) of this section or if the emission unit is located at a
major stationary source that belongs to one of the listed source
categories, the unit's potential to emit shall include fugitive
emissions (to the extent quantifiable).
* * * * *
    (48) * * *
    (i) * * *
    (a) The average rate shall include emissions associated with
startups, shutdowns, and malfunctions; and, for an emissions unit that
is part of one of the source categories listed in paragraph (b)(1)(iii)
of this section or for an emissions unit that is located at a major
stationary source that belongs to one of the listed source categories,
shall include fugitive emissions (to the extent quantifiable).
* * * * *
    (ii) * * *
    (a) The average rate shall include emissions associated with
startups, shutdowns, and malfunctions; and, for an emissions unit that
is part of one of the source categories listed in paragraph (b)(1)(iii)
of this section or for an emissions unit that is located at a major
stationary source that belongs to one of the listed source categories,
shall include fugitive emissions (to the extent quantifiable).
* * * * *
    (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. In the latter case, fugitive emissions, to the
extent quantifiable, shall be included only if the emissions unit is
part of one of the source categories listed in paragraph (b)(1)(iii) of
this section or if the emissions unit is located at a major stationary
source that belongs to one of the listed source categories.
    (iv) For a PAL for a major 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, except that fugitive emissions (to the extent quantifiable)
shall be included regardless of the source category.
* * * * *
    (i) * * *
    (1) * * *
    (vii) [Reserved]
* * * * *
    (r) * * *
    (6) * * *
    (iii) The owner or operator shall monitor the emissions of any
regulated NSR pollutant that could increase as a result of the project
and that is emitted by any emissions unit identified in paragraph
(r)(6)(i)(b) of this section; and calculate and maintain a record of
the annual emissions, in tons per year on a calendar year basis, for a
period of 5 years following resumption of regular operations after the
change, or for a period of 10 years following resumption of regular
operations after the change if

the project increases the design capacity or potential to emit of that
regulated NSR pollutant at such emissions unit. For purposes of this
paragraph (r)(6)(iii), fugitive emissions (to the extent quantifiable)
shall be monitored if the emissions unit is part of one of the source
categories listed in paragraph (b)(1)(iii) of this section or if the
emissions unit is located at a major stationary source that belongs to
one of the listed source categories.
    (iv) If the unit is an existing electric utility steam generating
unit, the owner or operator shall submit a report to the Administrator
within 60 days after the end of each year during which records must be
generated under paragraph (r)(6)(iii) of this section setting out the
unit's annual emissions, as monitored pursuant to paragraph (r)(6)(iii)
of this section, during the calendar year that preceded submission of
the report.
* * * * *
    (aa) * * *
    (4) * * *
    (i) * * *
    (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, regardless of
whether the emissions unit or major stationary source belongs to one of
the source categories listed in paragraph (b)(1)(iii) of this section.
* * * * *
[FR Doc. E8-29998 Filed 12-18-08; 8:45 am]

BILLING CODE 6560-50-P