( 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 II. A. 22( vi)( a) and ( b) of this Ruling.

( 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 II. A. 22( vi)( b)( 1) through ( 4) of this Ruling.

( 1) Determine the ODP of the substances by consulting 40 CFR part 82, subpart A, appendices A and B.

( 2) Calculate the replaced ODP weighted 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. 102 ( 3) Calculate the projected ODP weighted amount by multiplying the projected future annual usage of the new substance by its ODP.

( 4) If the value calculated in paragraph II. A. 22( vi)( b)( 2) of this Ruling is more than the value calculated in paragraph II. A. 22( vi)( b)( 3) of this Ruling,

then the projected use of the new substance is lower, on an ODP weighted basis, than the baseline usage of the replaced ODS.

23. 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.

24. Significant emissions increase means, for a regulated NSR pollutant, an increase in emissions that is significant ( as defined in paragraph II. A. 10 of this Ruling)

for that pollutant.

25.( 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 103 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 of 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 II. A. 25( i) of this Ruling 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 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 the 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 104 actual emissions under paragraph II. A. 32 of this Ruling 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 II. A. 25( 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.

26. Clean Unit means any emissions unit that has been issued a major NSR permit that requires compliance with BACT or LAER, that is complying with such BACT/ LAER requirements,

and qualifies as a Clean Unit pursuant to IV. I of this Ruling or pursuant to regulations approved by the Administrator in accordance with § 51.165( c) of this part; or any emissions unit that has been designated by a reviewing authority as a Clean Unit, based on the criteria in paragraphs IV. J. 3( i) through ( iv) of this Ruling, using a plan approved permitting process; or any emissions unit that has been designated by a reviewing authority as a Clean Unit, based on the criteria in § § 51.165( d)( 3)( i) through ( iv) of this part, using a plan approved permitting process;

or any emissions unit that has been designated as a Clean Unit by the Administrator in accordance with § 52.21 ( y)( 3)( i) through ( iv) of this chapter.

27. Nonattainment major new source review ( NSR)

program means a major source preconstruction permit program that implements Sections I through VI of this Ruling, or a 105 program that has been approved by the Administrator and incorporated into the plan to implement the requirements of § 51.165 of this part. Any permit issued under such a program is a major NSR permit.

28. Continuous emissions monitoring system ( CEMS)

means all of the equipment that may be required to meet the data acquisition and availability requirements of this Ruling, to sample, condition ( if applicable), analyze, and provide a record of emissions on a continuous basis.

29. 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.

30. Continuous parameter monitoring system ( CPMS)

means all of the equipment necessary to meet the data acquisition and availability requirements of this Ruling, 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.

31. Continuous emissions rate monitoring system ( CERMS) means the total equipment required for the 106 determination and recording of the pollutant mass emissions rate ( in terms of mass per unit of time).

32. Baseline actual emissions means the rate of emissions, in tons per year, of a regulated NSR pollutant,

as determined in accordance with paragraphs II. A. 32( i)

through ( iv) of this Ruling.

( 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 reviewing authority 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 non compliant 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 107 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 II. A. 32( i)( b) of this Ruling.

( 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 reviewing authority for a permit required either under this Ruling or under a plan approved by the Administrator, 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 non compliant emissions that occurred while the 108 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.

( 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 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 II. A. 32( ii)( b) and ( c) of this Ruling.

( iii) For a new emissions unit, the baseline actual 109 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 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. 32( i) of this Ruling, for other existing emissions units in accordance with the procedures contained in paragraph II. A. 32( ii) of this Ruling, and for a new emissions unit in accordance with the procedures contained in paragraph II. A. 32( iii) of this Ruling.

33. Regulated NSR pollutant, for purposes of this Ruling, means the following:

( i) Nitrogen oxides or any volatile organic compounds;

( ii) Any pollutant for which a national ambient air quality standard has been promulgated; or ( iii) Any pollutant that is a constituent or precursor of a general pollutant listed under paragraphs II. A. 33( i) or ( ii) of this Ruling, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regulation of the general pollutant.

34. Reviewing authority means the State air pollution control agency, local agency, other State agency, Indian tribe, or other agency issuing permits under this Ruling or 110 authorized by the Administrator to carry out a permit program under § § 51.165 and 51.166 of this part, or the Administrator in the case of EPA implemented permit programs under this Ruling or under § 52.21 of this chapter.

35. Project means a physical change in, or change in the method of operation of, an existing major stationary source.

36. Best available control technology ( BACT) means an emissions limitation ( including a visible emissions standard) based on the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the reviewing authority, on a case by case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR part 60 or 61. If the reviewing authority determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a 111 design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design,

equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results.

37. Prevention of Significant Deterioration ( PSD)

permit means any permit that is issued under a major source preconstruction permit program that has been approved by the Administrator and incorporated into the plan to implement the requirements of § 51.166 of this chapter, or under the program in § 52.21 of this chapter.

38. Federal Land Manager means, with respect to any lands in the United States, the Secretary of the department with authority over such lands.

* * * * *

IV. * * *

C. * * *

7. Designation of a Clean Unit or PCP. Decreases in actual emissions resulting from the installation of add on control technology or application of pollution prevention measures that were relied upon in designating an emissions unit as a Clean Unit or a project as a PCP cannot be used as offsets.

8. Credit for decreases at Clean Units and PCPs. 112 Decreases in actual emissions occurring at a Clean Unit cannot be used as offsets, except as provided in paragraphs IV. I. 8 and IV. J. 10 of this Ruling. Similarly, decreases in actual emissions occurring at a PCP cannot be used as offsets, except as provided in paragraph IV. K. 6( iv) of this Ruling.

D. Location of offsetting emissions. The owner or operator of a new or modified major stationary source may comply with any offset requirement in effect under this Ruling for increased emissions of any air pollutant only by obtaining emission reductions of such air pollutant from the same source or other sources in the same nonattainment area,

except that the reviewing authority may allow the owner or operator of a source to obtain such emission reductions in another nonattainment area if the conditions in IV. D. 1 and 2 are met.

1. The other area has an equal or higher nonattainment classification than the area in which the source is located.

2. Emissions from such other area contribute to a violation of the national ambient air quality standard in the nonattainment area in which the source is located.

* * * * *

E. Reasonable Further Progress Permits to construct and operate may be issued if the reviewing authority determines that, by the time the source is to commence operation, sufficient offsetting emissions 113 reductions have been obtained, such that total allowable emissions from existing sources in the region, from new or modified sources which are not major emitting facilities,

and from the proposed source will be sufficiently less than total emissions from existing sources prior to the application for such permit to construct or modify so as to represent ( when considered together with the plan provisions required under CAA section 172) reasonable further progress ( as defined in CAA section 171).

G. Applicability procedures.

1. To determine whether a project constitutes a major modification, the reviewing authority shall apply the principles set out below in paragraphs IV. G. 1( i) through ( vi) of this Ruling.

( i) Except as otherwise provided in paragraphs IV. G. 2 and 3 of this Ruling, and consistent with the definition of major modification contained in paragraph II. A. 5 of this Ruling, 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 II. A. 24 of this Ruling), and a significant net emissions increase ( as defined in paragraphs II. A. 6 and 10 of this Ruling). 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. 114 ( 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 IV. G. 1( iii) through ( vi) of this Ruling. 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.

( iii) 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 II. A. 25 of this Ruling) and the baseline actual emissions ( as defined in paragraphs II. A. 32( i) and ( ii) of this Ruling, as applicable), for each existing emissions unit,

equals or exceeds the significant amount for that pollutant ( as defined in paragraph II. A. 10 of this Ruling).

( iv) 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 115 is projected to occur if the sum of the difference between the potential to emit ( as defined in paragraph II. A. 3 of this Ruling) from each new emissions unit following completion of the project and the baseline actual emissions ( as defined in paragraph II. A. 32( iii) of this Ruling) of these units before the project equals or exceeds the significant amount for that pollutant ( as defined in paragraph II. A. 10 of this Ruling).

( v) 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.

( vi) 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 IV. G. 1( iii) through ( v) of this Ruling 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 II. A. 10 of this Ruling). 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 IV. G. 1( iii) of this Ruling for the existing unit and using the method specified in paragraph IV. G. 1( v) of 116 this Ruling for the Clean Unit.

2. For any major stationary source for a PAL for a regulated NSR pollutant, the major stationary source shall comply with requirements under paragraph IV. L of this Ruling.

3. An owner or operator undertaking a PCP ( as defined in paragraph II. A. 22 of this Ruling) shall comply with the requirements under paragraph IV. K of this Ruling.

H. Provisions for projected actual emissions. The provisions of this paragraph IV. H apply to projects at existing emissions units at a major stationary source ( other than projects at a Clean Unit or at a source with a PAL) in circumstances where there is a reasonable possibility that a project that is not a part of a major modification may result in a significant emissions increase and the owner or operator elects to use the method specified in paragraphs II. A. 25( ii)( a) through ( c) of this Ruling for calculating projected actual emissions.

1. Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information:

( i) A description of the project;

( ii) Identification of the emissions unit( s) whose emissions of a regulated NSR pollutant could be affected by the project; and ( iii) A description of the applicability test used to 117 determine that the project is not a major modification for any regulated NSR pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under paragraph II. A. 25( ii)( c) of this Ruling and an explanation for why such amount was excluded,

and any netting calculations, if applicable.

2. If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in paragraph IV. H. 1 of this Ruling to the reviewing authority. Nothing in this paragraph IV. H. 2 shall be construed to require the owner or operator of such a unit to obtain any determination from the reviewing authority before beginning actual construction.

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. H. 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.

4. If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report 118 to the reviewing authority within 60 days after the end of each year during which records must be generated under paragraph IV. H. 3 of this Ruling setting out the unit's annual emissions during the year that preceded submission of the report.

5. If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the reviewing authority if the annual emissions, in tons per year, from the project identified in paragraph IV. H. 1 of this Ruling, exceed the baseline actual emissions ( as documented and maintained pursuant to paragraph IV. H. 1( iii) of this Ruling, by a significant amount ( as defined in paragraph II. A. 10 of this Ruling) for that regulated NSR pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to paragraph IV. H. 1( iii)

of this Ruling. Such report shall be submitted to the reviewing authority within 60 days after the end of such year. The report shall contain the following:

( i) The name, address and telephone number of the major stationary source;

( ii) The annual emissions as calculated pursuant to paragraph IV. H. 3 of this Ruling; and ( iii) Any other information that the owner or operator wishes to include in the report ( e. g., an explanation as to why the emissions differ from the preconstruction 119 projection).

6. The owner or operator of the source shall make the information required to be documented and maintained pursuant to this paragraph IV. H of this Ruling available for review upon a request for inspection by the reviewing authority or the general public pursuant to the requirements contained in § 70.4( b)( 3)( viii) of this chapter.

I. Clean Unit Test for emissions units that are subject to LAER. The owner or operator of a major stationary source has 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 IV. I. 1 through 9 of this Ruling.

1. Applicability. The provisions of this paragraph IV. I apply to any emissions unit for which the reviewing authority has issued a major NSR permit within the past 10 years.

2. General provisions for Clean Units. The provisions in paragraphs IV. I. 2( i) through ( v) of this Ruling 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 IV. I. 4 of this Ruling) and before the expiration date ( as determined in accordance with paragraph IV. I. 5 of this Ruling) will be considered to have occurred while the 120 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 LAER and the project would not alter any physical or operational characteristics that formed the basis for the LAER determination as specified in paragraph IV. I. 6( iv) of this Ruling, 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 LAER or the project would alter any physical or operational characteristics that formed the basis for the LAER determination as specified in paragraph IV. I. 6( iv) of this Ruling, then the emissions unit loses its designation as a Clean Unit upon issuance of the necessary permit revisions ( unless the unit requalifies as a Clean Unit pursuant to paragraph IV. I. 3( iii) of this Ruling). 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 IV. G. 1( i) through 121 ( iv) and paragraph IV. G. 1( vi) of this Ruling as if the emissions unit is not a Clean Unit.

( v) Certain Emissions Units with PSD permits. For emissions units that meet the requirements of paragraphs IV. I. 2( v)( a) and ( b) of this Ruling, the BACT level of emissions reductions and/ or work practice requirements shall satisfy the requirement for LAER in meeting the requirements for Clean Units under paragraphs IV. I. 3 through 8 of this Ruling. For these emissions units, all requirements for the LAER determination under paragraphs IV. I. 2( ii) and ( iii) of this Ruling shall also apply to the BACT permit terms and conditions. In addition, the requirements of paragraph IV. I. 7( i)( b) of this Ruling do not apply to emissions units that qualify for Clean Unit status under this paragraph IV. I. 2( v).

( a) The emissions unit must have received a PSD permit within the last 10 years and such permit must require the emissions unit to comply with BACT.

( b) The emissions unit must be located in an area that was redesignated as nonattainment for the relevant pollutant( s) after issuance of the PSD permit and before the effective date of the Clean Unit Test provisions in the area.

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 IV. I. 3( i) and ( ii) of this Ruling. After the 122 original Clean Unit designation expires in accordance with paragraph IV. I. 5 of this Ruling or is lost pursuant to paragraph IV. I. 2( iii) of this Ruling, such emissions unit may re qualify as a Clean Unit under either paragraph IV. I. 3( iii) of this Ruling, or under the Clean Unit provisions in paragraph IV. J of this Ruling. To re qualify as a Clean Unit under paragraph IV. I. 3( iii) of this Ruling,

the emissions unit must obtain a new major NSR permit issued through the applicable nonattainment major NSR program and meet all the criteria in paragraph IV. I. 3( iii) of this Ruling. 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 an air pollution control technology ( which includes pollution prevention as defined under paragraph II. A. 23 of this Ruling or work practices)

that meets both the following requirements in paragraphs IV. I. 3( ii)( a) and ( b) of this Ruling.

( a) The control technology achieves the LAER level of emissions reductions as determined through issuance of a 123 major NSR permit within the past 10 years. However, the emissions unit is not eligible for Clean Unit designation if the LAER 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 current day LAER, and the emissions unit must meet the requirements in paragraphs IV. I. 3( i) and ( ii) of this Ruling.

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 IV. I. 4( i) or ( ii) of this Ruling.

( i) Original Clean Unit designation, and emissions units that re qualify as Clean Units by implementing a new control technology to meet current day LAER. The effective date is the date the emissions unit's air pollution control 124 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 this Ruling becomes 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 IV. I. 5( i) or ( ii) of this Ruling.

( i) Original Clean Unit designation, and emissions units that re qualify by implementing new control technology to meet current day LAER. For any emissions unit that automatically qualifies as a Clean Unit under paragraphs IV. I. 3( i) and ( ii) of this Ruling, 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 Clean Unit designation in paragraph IV. I. 7 of this Ruling.

( ii) Emissions units that re qualify for the Clean Unit designation using an existing control technology. For 125 any emissions unit that re qualifies as a Clean Unit under paragraph IV. I. 3( iii) of this Ruling, 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 IV. I. 7 of this Ruling.

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 in paragraphs IV. I. 6( i)

through ( vi) of this Ruling related to the Clean Unit.

( i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the pollutant( s)

for 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 126 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 the LAER, and any physical or operational characteristics that formed the basis for the LAER 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 IV. I. 7 of this 127 Ruling.)

( 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 IV. I. 7 of this Ruling.

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 IV. I. 7( i) through ( iii) of this Ruling. This paragraph IV. I. 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 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 LAER that is recorded in the major NSR permit, and subsequently reflected in the title V permit.

( a) 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 LAER determination ( e. g., possibly the emissions unit's capacity or throughput).

( b) The Clean Unit may not emit above a level that has been offset.

( ii) The Clean Unit must comply with any terms and 128 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. Offsets and 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"), or be used for generating offsets 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 129 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.

J. Clean Unit provisions for emissions units that achieve an emission limitation comparable to LAER. The owner or operator of a major stationary source has 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 IV. J. 1 through 11 of this Ruling.

1. Applicability. The provisions of this paragraph IV. J apply to emissions units which do not qualify as Clean Units under paragraph IV. I of this Ruling, but which are achieving a level of emissions control comparable to LAER,

as determined by the reviewing authority in accordance with this paragraph IV. J.

2. General provisions for Clean Units. The provisions in paragraphs IV. J. 2( i) through ( iv) of this Ruling apply to a Clean Unit ( designated under this paragraph IV. J). 130 ( 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 IV. J. 5 of this Ruling) and before the expiration date ( as determined in accordance with paragraph IV. J. 6 of this Ruling) 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 IV. J. 4 of this Ruling) to be comparable to LAER, 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 LAER as specified in paragraph IV. J. 8( iv) of this Ruling, 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 IV. J. 4 of this Ruling) to be comparable to LAER,

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 LAER as specified in paragraph IV. J. 8( iv) of this Ruling, then the emissions unit 131 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 IV. J. 3( iv) of this Ruling). 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 IV. G. 1( i) through ( iv) and paragraph IV. G. 1( vi) of this Ruling as if the emissions unit were never 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 IV. J. 3( i) through ( iii) of this Ruling. After the original Clean Unit designation expires in accordance with paragraph IV. J. 6 of this Ruling or is lost pursuant to paragraph IV. J. 2( iii) of this Ruling, such emissions unit may requalify as a Clean Unit under either paragraph IV. J. 3( iv) of this Ruling, or under the Clean Unit provisions in paragraph IV. I of this Ruling. To re qualify as a Clean Unit under paragraph IV. J. 3( iv) of this Ruling, the emissions unit must obtain a new permit issued pursuant to the requirements in paragraphs IV. J. 7 and 8 of this Ruling and meet all the 132 criteria in paragraph IV. J. 3( iv) of this Ruling. 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 II. A. 23 of this Ruling or work practices) that meets both the following requirements in paragraphs IV. J. 3( i)( a) and ( b) of this Ruling.

( a) The owner or operator has demonstrated that the emissions unit's control technology is comparable to LAER according to the requirements of paragraph IV. J. 4 of this Ruling. 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 LAER 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. 133 ( 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 the requirements of this paragraph IV. J. 3. in the area where the unit is located but no sooner than June 15, 2004. However, for such emissions units, the owner or operator must apply for the Clean Unit designation by June 15, 2006. For technologies installed after June 15, 2004, 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 IV. J. 7 and 8 of this Ruling) that demonstrates that the emissions unit's control technology is achieving a level of emission control comparable to current day LAER,

and the emissions unit must meet the requirements in paragraphs IV. J. 3( i)( a) and IV. J. 3( ii) of this Ruling. 134 4. Demonstrating control effectiveness comparable to LAER. The owner or operator may demonstrate that the emissions unit's control technology is comparable to LAER for purposes of paragraph IV. J. 3( i) of this Ruling according to either paragraph IV. J. 4( i) or ( ii) of this Ruling.

Paragraph IV. J. 4( iii) of this Ruling specifies the time for making this comparison.

( i) Comparison to previous 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 LAER if it achieves an emission limitation that is at least as stringent as any one of the five best performing similar sources for which a LAER determination has been made within the preceding 5 years, and for which information has been entered into the RBLC. The reviewing authority shall also compare this presumption to any additional 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 LAER 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 LAER. 135 In addition, any other person may present evidence related to whether the control technology is substantially as effective as LAER during the public participation process required under paragraph IV. J. 7 of this Ruling. The reviewing authority shall consider such evidence on a caseby case basis and determine whether the emissions unit's air pollution control technology is substantially as effective as LAER.

( iii) Time of comparison.

( a) Emissions units with control technologies that are installed before effective date of requirements in this paragraph. The owner or operator of an emissions unit whose control technology is installed before the effective date of the requirements of this paragraph K. 4.( iii)( a) in the area where the unit is located, but no later than June 15, 2004 may, at its option, either demonstrate that the emission limitation achieved by the emissions unit's control technology is comparable to the LAER 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 LAER requirements. The expiration date of the Clean Unit designation will depend on which option the owner or operator uses, as specified in paragraph IV. J. 6 of this Ruling.

( b) Emissions units with control technologies that are 136 installed after June 15, 2004. The owner or operator must demonstrate that the emission limitation achieved by the emissions unit's control technology is comparable to current day LAER 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 modification) is the date that the permit required by paragraph IV. J. 7 of this Ruling 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 LAER 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 IV. J. 5 of this Ruling. 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 137 IV. J. 9 of this Ruling.

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 IV. J. 8.

8. Required permit content. The permit required by paragraph IV. J. 7 of this Ruling shall include the terms and conditions set forth in paragraphs IV. J. 8( i) through ( vi) of this Ruling. 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 this 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 138 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 139 LAER, 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 LAER ( 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 IV. J. 9 of this Ruling.)

( 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 IV. J. 9 of this Ruling.

9. Maintaining Clean Unit designation. To maintain Clean Unit designation, the owner or operator must conform to all the restrictions listed in paragraphs IV. J. 9( i)

through ( v) of this Ruling. This paragraph IV. J. 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 140 emission control comparable to LAER.

( 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 LAER ( e. g., possibly the emissions unit's capacity or throughput).

( iii) The Clean Unit may not emit above a level that has been offset.

( 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. Offsets and 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"), or be used for generating offsets unless such use occurs before June15,

2004 or after the Clean Unit designation expires; or, unless the emissions unit reduces emissions below the level that 141 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 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 a Clean Unit's designation expires or is lost pursuant to paragraphs IV. I. 2( iii) and IV. J. 2( iii) of this Ruling, it must re qualify under the requirements that are currently applicable.

K. PCP exclusion procedural requirements. PCPs shall be provided according to the provisions of paragraphs IV. K. 1 through 6 of this Ruling. 142 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 II. A. 22( i) through ( vi) of this Ruling,

or if the project is not listed in paragraphs II. A. 22( i)

through ( vi) of this Ruling, 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 IV. K. 5 of this Ruling.

Regardless of whether the owner or operator submits a notice or a permit application, the project must meet the requirements in paragraph IV. K. 2 of this Ruling, and the notice or permit application must contain the information required in paragraph IV. K. 3 of this Ruling.

2. Any project that relies on the PCP exclusion must meet the requirements in paragraphs IV. K. 2( i) and ( ii) of this Ruling.

( 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 II. A. 22( i) through ( vi) of this Ruling 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 143 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 IV. K. 3( i) through ( v)

of this Ruling.

( 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 IV. G of this Ruling, that will result from the project, and a copy of the environmentally beneficial analysis required by paragraph IV. K. 2( i) of this Ruling.

( 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 144 air quality analysis required by paragraphs IV. K. 2( i) and ( ii) of this Ruling, 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 IV. K. 2( ii) of this Ruling. An air quality impact analysis is not required for any pollutant which will not experience a significant emissions increase as a result of the project.

4. Notice process for listed projects. For projects listed in paragraphs II. A. 22( i) through ( vi) of this Ruling,

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 145 project that is not listed in paragraphs II. A. 22( i) through ( vi) of this Ruling, the project must be approved by the reviewing authority and recorded in a permit issued pursuant to this Ruling, 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 IV. K. 6( i) through ( iii) of this Ruling.

( i) General duty. The owner or operator must operate the PCP in a manner 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 IV. K. 2( i) and ( ii) of this Ruling, with information submitted in the notice or permit application required by paragraph IV. K. 3 of this Ruling, 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 146 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 IV. K. 6( i) of this Ruling.

( iii) Permit requirements. The owner or operator must comply with any provisions in the permit issued pursuant to this Ruling, 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, or be used for generating offsets, 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. 147 L. Actuals PALs. The provisions in paragraphs IV. L. 1 through 15 of this Ruling govern actuals PALs.

1. Applicability.

( i) The reviewing authority may approve the use of an actuals PAL for any existing major stationary source ( except as provided in paragraph IV. L. 1( ii) of this Ruling) if the PAL meets the requirements in paragraphs IV. L. 1 through 15 of this Ruling. The term " PAL" shall mean " actuals PAL"

throughout paragraph IV. L of this Ruling.

( ii) The reviewing authority shall not allow an actuals PAL for VOC or NOX for any major stationary source located in an extreme ozone nonattainment area.

( iii) 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 IV. L. 1 through 15 of this Ruling,

and complies with the PAL permit:

( a) Is not a major modification for the PAL pollutant;

( b) Does not have to be approved through a nonattainment major NSR program; and ( c) Is not subject to the provisions in paragraph IV. F of this Ruling ( restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of a nonattainment major NSR program).

( iv) Except as provided under paragraph IV. L. 1( iii)( c) 148 of this Ruling, 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. For the purposes of this paragraph IV. L, the definitions in paragraphs IV. L. 2( i) through ( xi)

of this Ruling apply. When a term is not defined in these paragraphs, it shall have the meaning given in paragraph II. A of this Ruling 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 II. A. 32 of this Ruling) of all emissions units ( as defined in paragraph II. A. 7 of this Ruling) at the source,

that emit or have the potential to emit the PAL pollutant.

( ii) Allowable emissions means " allowable emissions"

as defined in paragraph II. A. 11 of this Ruling, except as this definition is modified according to paragraphs IV. L. 2( ii)( a) through ( b) of this Ruling.

( 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 II. A. 3 of this Ruling, except that the words " or enforceable as a practical matter" should be added after " federally enforceable." 149 ( 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 II. A. 10 of this Ruling 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 IV. L. 1 through 15 of this Ruling.

( vi) PAL effective date generally means the date of issuance of the PAL permit. However, the PAL effective date 150 for an increased PAL is the date any emissions unit which 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 II. A. 5 and 6 of this Ruling ( 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 permit issued under this Ruling, 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 II. A. 10 of this Ruling 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 151 IV. L. 2( iv) of this Ruling.

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 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 IV. L. 13( i) of this Ruling.

4. General requirements for establishing PALs.

( i) The reviewing authority is allowed to establish a PAL at a major stationary source, provided that at a minimum, the requirements in paragraphs IV. L. 4( i)( a) through ( g) of this Ruling are met. 152 ( 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 participation requirements in paragraph IV. L. 5 of this Ruling.

( c) The PAL permit shall contain all the requirements of paragraph IV. L. 7 of this Ruling.

( 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. 153 ( 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 IV. L. 12 through 14 of this Ruling 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, which occur during the PAL effective period, creditable as decreases for purposes of offsets under paragraph IV. C of this Ruling 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 requirement 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 actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions ( as defined in paragraph II. A. 32 of this Ruling) of the PAL pollutant for 154 each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under paragraph II. A. 10 of this Ruling 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 PAL permit 155 contain, at a minimum, the information in paragraphs IV. L. 7( i) through ( x) of this Ruling.

( 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 IV. L. 10 of this Ruling 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 IV. L. 9 of this Ruling.

( 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 IV. L. 13( i) of this Ruling.

( vii) A requirement that the major stationary source owner or operator monitor all emissions units in accordance 156 with the provisions under paragraph IV. L. 12 of this Ruling.

( viii) A requirement to retain the records required under paragraph IV. L. 13 of this Ruling on site. Such records may be retained in an electronic format.

( ix) A requirement to submit the reports required under paragraph IV. L. 14 of this Ruling 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 requirements in paragraphs IV. L. 8( i) and ( ii)

of this Ruling apply to actuals PALs.

( 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 reviewing authority must 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 paragraph IV. C of this Ruling.

( 3) Revise the PAL to reflect an increase in the PAL as provided under paragraph IV. L. 11 of this Ruling. 157 ( b) The reviewing authority shall have 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.

( 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 air quality related value 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 IV. L. 8( ii)( a)( 1) of this Ruling for the correction of typographical/ calculation errors that do not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirements of paragraph IV. L. 5 of this Ruling.

9. Expiration of a PAL. Any PAL which is not renewed in accordance with the procedures in paragraph IV. L. 10 of this Ruling shall expire at the end of the PAL effective period, and the requirements in paragraphs IV. L. 9( i) through 158 ( v) of this Ruling 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 IV. L. 9( i)( a) through ( b) of this Ruling.

( a) Within the time frame specified for PAL renewals in paragraph IV. L. 10( ii) of this Ruling, 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 IV. L. 10( v) of this Ruling, 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. 159 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 IV. L. 9( i)( a) of this Ruling, 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 the nonattainment major NSR requirements if such change meets the definition of major modification in paragraph II. A. 5 of this Ruling.

( 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 IV. F of this Ruling, but were eliminated by the PAL in accordance with the provisions in paragraph IV. L. 1( iii)( c)

of this Ruling.

10. Renewal of a PAL.

( i) The reviewing authority shall follow the 160 procedures specified in paragraph IV. L. 5 of this Ruling 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 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 IV. L. 10( iii)( a) through ( d) of this Ruling.

( a) The information required in paragraphs IV. L. 3( i)

through ( iii) of this Ruling.

( b) A proposed PAL level.

( c) The sum of the potential to emit of all emissions 161 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 IV. L. 10( iv)( a) and ( b) of this Ruling. However, in no case may any such adjustment fail to comply with paragraph IV. L. 10( iv)( c) of this Ruling.

( a) If the emissions level calculated in accordance with paragraph IV. L. 6 of this Ruling 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 IV. L. 10( iv)( b) of this Ruling; 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 IV. L. 10( iv)( a) and ( b)

of this Ruling, 162 ( 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 IV. L. 11 of this Ruling ( 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 reviewing authority may increase a PAL emission limitation only if the major stationary source complies with the provisions in paragraphs IV. L. 11( i)( a)

through ( d) of this Ruling.

( 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. 163 ( 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 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 IV. L. 11( i)( a) of this Ruling, 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 nonattainment major NSR program process ( for example, LAER),

even though they have also become subject to the PAL or continue to be subject to the PAL. 164 ( 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 IV. L. 11( i)( b)), 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 IV. L. 5 of this Ruling.

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 165 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 IV. L. 12( ii)( a)

through ( d) of this Ruling and must be approved by the reviewing authority.

( c) Notwithstanding paragraph IV. L. 12( i)( b) of this Ruling, you may also employ an alternative monitoring approach that meets paragraph IV. L. 12( i)( a) of this Ruling if approved by the reviewing authority.

( d) Failure to use a monitoring system that meets the requirements of this Ruling 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 IV. L. 12( iii) through ( ix)

of this Ruling:

( 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: 166 ( 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: 167 ( 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 site specific 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 168 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 IV. L. 12( iii) through ( vii) of this Ruling, 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 re validated 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.

13. Recordkeeping requirements.

( i) The PAL permit shall require an owner or operator 169 to retain a copy of all records necessary to determine compliance with any requirement of paragraph IV. L of this Ruling 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 IV. L. 14( i) through ( iii).

( i) Semi Annual Report. The semi annual 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 IV. L. 14( i)( a) through ( g) of this Ruling.

( a) The identification of owner and operator and the permit number. 170 ( b) Total annual emissions ( tons/ year) based on a 12

month rolling total for each month in the reporting period recorded pursuant to paragraph IV. L. 13( i) of this Ruling.

( 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 IV. L. 12( vii) of this Ruling.

( 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. 171 ( 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 3 months after completion of such test or method.

15. Transition requirements. 172 ( i) No reviewing authority may issue a PAL that does not comply with the requirements in paragraphs IV. L. 1 through 15 of this Ruling after the date that this Ruling becomes effective for the State in which the major stationary source is located.

( ii) The reviewing authority may supersede any PAL which was established prior to the date that this Ruling becomes effective for the State in which the major stationary source is located with a PAL that complies with the requirements of paragraphs IV. L. 1 through 15 of this Ruling.

M. Offset ratios for ozone transport regions and nonattainment areas that are subject to subpart 2, part D,

title I of the Act.

1. In meeting the emissions offset requirements of paragraph IV. A, Condition 3 of this Ruling for ozone nonattainment areas that are subject to subpart 2, part D,

title I of the Act, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be as follows:

( i) In any marginal nonattainment area for ozone   at least 1.1: 1;

( ii) In any moderate nonattainment area for ozone   at least 1.15: 1;

( iii) In any serious nonattainment area for ozone   at least 1.2: 1; 173 ( iv) In any severe nonattainment area for ozone   at least 1.3: 1 ( except that the ratio may be at least 1.2: 1 if the State also requires all existing major sources in such nonattainment area to use BACT for the control of VOC); and ( v) In any extreme nonattainment area for ozone   at least 1.5: 1 ( except that the ratio may be at least 1.2: 1 if the State also requires all existing major sources in such nonattainment area to use BACT for the control of VOC); and 2. Notwithstanding the requirements of paragraph IV. M. 1 of this Ruling for meeting the requirements of paragraph IV. A, Condition 3 of this Ruling, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1.15: 1 for all areas within an ozone transport region that is subject to subpart 2, part D, title I of the Act, except for serious, severe,

and extreme ozone nonattainment areas that are subject to subpart 2, part D, title I of the Act.

N. Additional provisions for emissions of nitrogen oxides in ozone transport regions and nonattainment areas.

The requirements of this Ruling applicable to major stationary sources and major modifications of volatile organic compounds shall apply to nitrogen oxides emissions from major stationary sources and major modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas where the Administrator has granted a NOx waiver applying 174 the standards set forth under 182( f) and the waiver continues to apply.

O. Severability. If any provision of this Ruling, or the application of such provision to any person or circumstance, is held invalid, the remainder of this Ruling,

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.

* * * * *

VI. POLICY WHERE ATTAINMENT DATES HAVE NOT PASSED * * * In such cases, a new source locating in an area designated in 40 CFR 81.300 et. seq. as nonattainment ( or,

where Section III of this Ruling is applicable, a new source that would cause or contribute to an NAAQS violation) may be exempt from the Conditions of Section IV. A. if the conditions in paragraphs VI. A. through C are met.

A. The new source meets the applicable SIP emission limitations.

B. The new source will not interfere with the attainment date specified in the SIP under section 110 of the Act C. The Administrator has determined that conditions A and B of this section are satisfied and such determination is published in the Federal Register.

PART 52  [ Amended] 175 1. The authority citation for part 52 continues to read as follows:

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

Subpart A  [ Amended]

2. Section 52.24 is revised to read as follows:

§ 52.24 Statutory restriction on new sources.

( a) Any area designated nonattainment pursuant to section 107( d) of the Act to which, immediately prior to the enactment of the Amendments to the Act of 1990 ( November 15,

1990), a prohibition of construction or modification of major stationary sources was applied, shall retain that prohibition if such prohibition was applied by virtue of a finding of the Administrator that the State containing such an area:

( 1) Failed to submit an implementation plan meeting the requirements of an approvable new source review permitting program; or ( 2) Failed to submit an implementation plan that provided for timely attainment of the national ambient air quality standard for sulfur dioxide by December 31, 1982.

This prohibition shall apply until the Administrator approves a plan for such area as meeting the applicable requirements of part D of title I of the Act as amended ( NSR permitting requirements) or subpart 5 of part D of title I of the Act as amended ( relating to attainment of the 176 national ambient air quality standards for sulfur dioxide),

as applicable.

( b) Permits to construct and operate as required by permit programs under section 172( c)( 5) of the Act may not be issued for new or modified major stationary sources proposing to locate in nonattainment areas or areas in a transport region where the Administrator has determined that the applicable implementation plan is not being adequately implemented for the nonattainment area or transport region in which the proposed source is to be constructed or modified in accordance with the requirements of part D of title I of the Act.

( c) Whenever, on the basis of any information, the Administrator finds that a State is not in compliance with any requirement or prohibition of the Act relating to the construction of new sources or the modification of existing sources, the Administrator may issue an order under section 113( a)( 5) of the Act prohibiting the construction or modification of any major stationary source in any area to which such requirement applies.

( d) The restrictions in paragraphs ( a) and ( b) of this section apply only to major stationary sources of emissions that cause or contribute to concentrations of the pollutant ( or precursors, as applicable) for which the transport region or nonattainment area was designated such, and for which the applicable implementation plan is not being 177 carried out in accordance with, or does not meet, the requirements of part D of title I of the Act.

( e) For any transport region or any area designated as nonattainment for any national ambient air quality standard,

the restrictions in paragraphs ( a) and ( b) of this section shall apply to any major stationary source or major modification that would be major for the pollutant ( or precursors, where applicable) for which the area is designated nonattainment or a transport region, if the stationary source or major modification would be constructed anywhere in the designated nonattainment area or transport region. A major stationary source or major modification that is major for volatile organic compounds is also major for ozone. A major stationary source or major modification that is major for nitrogen oxides is also major for ozone.

( f) The provisions in § 51.165 of this chapter shall apply in interpreting the terms under this section.

( g) At such time that a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitation which was established after August 7,

1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then:

( 1) If the construction moratorium imposed pursuant to this section is still in effect for the nonattainment area 178 or transport region in which the source or modification is located, then the permit may not be so revised; or ( 2) If the construction moratorium is no longer in effect in that area, then the requirements of § 51.165 of this chapter shall apply to the source or modification as though construction had not yet commenced on the source or modification.

( h) This section does not apply to major stationary sources or major modifications locating in a clearly defined part of a nonattainment area or transport region ( such as a political subdivision of a State), where the EPA finds that a plan which meets the requirements of part D of title I of the Act is in effect and is being implemented in that part.

( i) RESERVED ( j) RESERVED ( k) For an area designated as nonattainment after July 1, 1979, the Emission offset Interpretative Ruling, 40 CFR part 51, Appendix S shall govern permits to construct and operate applied for during the period between the date of designation as nonattainment and the date the part D plan is approved.