attainment area consists of two large production buildings (i.e.,
Buildings 1 and 2), each with seven magnetic tape process lines. In
particular, the source has web coating lines used in the manufacture of
magnetic data storage media as well as equipment for handling raw
materials associated with coating operations, storage of products or
materials, and power boilers to support the process activities.
    Five of the existing magnetic tape coating lines in Building 1 are
subject to the MACT standard (part 63, subpart EE), which requires a
95-percent HAP emissions reduction from the process lines and
associated solvent storage tanks, mixing vessels, solvent recovery
equipment, and waste handling devices. Two of these five lines are also
subject to the NSPS for magnetic tape coating (part 60, subpart SSS),
which requires up to 95-percent control of VOCs from coating lines and
mixing vessels. The other two lines are not regulated under part 60 or
part 63 because they are grandfathered from NSPS subpart SSS and do not
emit any HAP. However, these two lines are subject to an emissions
limitation under the SIP that requires an 80-percent reduction in VOC
emissions. For major modifications, major NSR in this PSD area would
require, for this source, application of BACT (determined on a case-by-
case basis), along with a determination that the VOC emissions
increase, among other things, will not cause or contribute to an
exceedance of the ozone NAAQS or have an adverse impact on the air
quality related values of any Class I area. The existing storage tanks
are grandfathered from the NSPS (part 60, subpart Kb), but are subject
to the MACT standard (subpart EE) to the extent that they store HAP.
    The VOC emissions from the equipment in Building 1 are currently
controlled with a large, very efficient (96-percent control) carbon
adsorption system which the source installed at the time it became
subject to MACT subpart EE. This resulted in voluntary over-control of
the two lines subject only to the SIP limitation. The source adopted
this control approach so as to retire the old control devices that
previously served these two lines and to allow for flexibility in
future operations. With the voluntary over-control of these two lines,
current total annual VOC emissions from Building 1 are 500 tpy. The
amount of this over-control would be approximately 572 tpy, assuming
that the seven lines are equal in their contributions to the total VOC
emissions of Building 1.
    The source would like the flexibility to make a range of changes
within Building 1, but the exact changes within this range will depend
upon business conditions during the permit term and, therefore, are not
yet known. Overall, the source seeks the flexibility to make the
following changes:
     Use new raw materials in coating solutions or use an
entirely new coating solution;
     Modify the existing process equipment; and/or
     Add new process equipment of a similar nature to existing
equipment (including new coating lines) within this building. This new
equipment would be limited to equipment included in the definition of
``magnetic tape manufacturing operation'' in MACT subpart EE (40 CFR
63.702).
    The source may pursue a two-part approach to obtain the desired
flexibility to make changes within Building 1: (1) Obtain a PSD permit
that designates Building 1 as a Green Group and advance approves the
future changes; and (2) revise the existing title V permit under the
significant modification process to incorporate all applicable
requirements, as required by part 70, for the changes that are advance
approved in Building 1 under PSD.
    Assuming the source follows this approach, the source submits a PSD
permit application requesting a Green Group designation for Building 1.
This permit application must include descriptions of the types of
changes the source intends to make there over the next 10 years (as
noted above), along with emissions information associated with both the
changes, especially regarding any requested increases in emissions, and
the existing operations of Building 1.
    The PSD application must demonstrate how those changes and the
associated emissions increases in combination with existing emissions
will comply with PSD requirements for

Green Groups. In order to meet BACT, the source in its PSD application
proposes to control emissions from Building 1, including emissions from
anticipated changes, by (1) Using permanent total enclosures to capture
all VOC emissions from the building (including coating lines and
associated mixing vessels, solvent recovery equipment, and waste
handling devices), and (2) venting these enclosures and the storage
tanks to the highly efficient (96-percent efficient) carbon adsorption
system currently used to control emissions from all the equipment in
Building 1. The PSD application includes the following BACT-related
demonstrations:
     A demonstration that the resultant 96-percent control of
VOCs qualifies as BACT; and
     A demonstration that the existing carbon adsorption system
has the capacity to maintain 96-percent control in the face of the
increased solvent loading associated with the anticipated changes.
    In addition, the application contains a proposed Green Group
emissions limit of 600 tpy VOC and all emissions information relied
upon to calculate this limit. The proposed limit, in this case, is the
sum of the current baseline actual emissions for each existing
emissions activity comprising the group (since that baseline already
reflects application of the proposed BACT), which the source has
calculated to be 500 tpy, plus a 100 tpy emissions increase increment
to accommodate the calculated, maximum emissions from any future
changes for which the source is seeking approval. In other cases where
current controls do not reflect application of the proposed BACT,
sources also would be required to submit actual emissions information
for included activities relative to their operation before BACT would
be applied. In this example, by subjecting the coating lines and all of
the other emissions activities in the Green Group to the BACT level of
control, the source has imposed additional control, not otherwise
required, on the two lines otherwise subject only to SIP requirements.
While the overall actual emissions from this group may increase by 100
tpy upon approval of the Green Group, the proposed increase would be
subjected to BACT, and overall VOC emissions would be less by 472 tpy
than the actual emissions level that would occur for the source were
the Green Group level of control not in effect for the two lines
previously subject to only to SIP requirements (i.e., 572 tpy over-
control minus the 100 tpy increase).
    The PSD application also includes a demonstration that a VOC
emissions increase of 100 tpy from Building 1 will be consistent with
the PSD requirements applicable to the area. It shows that the
increase, among other things, will not cause or contribute to ambient
ozone in excess of the ozone NAAQS or have an adverse impact on the air
quality related values associated with any Class I area.
    The application also describes, as normally required under PSD
permitting, how the source will demonstrate initial and ongoing
compliance with the BACT emissions limits. In doing so, the source
bears in mind the requirements of the other applicable requirements
(NSPS subpart SSS, MACT subpart EE, and the SIP) with an eye toward
streamlining these requirements, as discussed further below. For the
initial VOC BACT compliance test, the source proposes to measure the
control efficiency of the carbon adsorption system by testing at the
inlet and outlet of the system using EPA Reference Method 25A and to
verify the permanent total enclosures using EPA Reference Method 204.
To assure ongoing compliance with the proposed BACT for VOC emissions,
the source proposes to monitor continuously the Green Group's single
emissions outlet (the carbon adsorption system stack) with a CEMS
calibrated on the predominant VOC. (The same CEMS currently used for
compliance purposes under the existing emissions limits.) The operating
limit for this parameter (outlet concentration) will be established
during the initial performance test. This monitoring system will also
serve to assure that the emissions vented to the carbon adsorber do not
exceed the capacity of the system (a Green Group requirement), which
would result in an elevated outlet concentration. In addition, the
source proposes to continuously monitor its permanent total enclosures
using differential pressure gauges to demonstrate that these enclosures
are at the prescribed negative pressure relative to their surroundings.
The doors into the enclosures also are equipped with contact switches
and electronic interlocks that automatically close the door after 15
seconds; the actual open time for each door is monitored and tracked.
An operator alarm sounds if a door is open longer than 3 minutes. These
types of testing and monitoring procedures are allowed under NSPS
subpart SSS, MACT subpart EE, and the SIP as well.
    To demonstrate compliance with the annual VOC emissions limit
required for a Green Group (set, in this case, at the level of baseline
actual emissions at BACT plus 100 tpy (i.e., 600 tpy VOC) as projected
in the application), the source proposes to meet the MRRT requirements
for Green Groups (discussed previously) by using the concentration data
from the VOC CERMS on the Building 1 carbon adsorber outlet coupled
with data from a volumetric flow rate CEMS. Together these CEMS
constitute a continuous emissions rate monitoring system (CERMS), which
will allow a direct determination of mass emissions from this building.
Total VOC emissions will be determined for each month, and the source
will calculate the rolling 12-month total for comparison to the annual
VOC emissions limit.
    The source also proposes comprehensive recordkeeping and reporting
in its PSD application. The proposed recordkeeping includes use of an
automated data acquisition and handling system (DAHS) to record CEMS
and CERMS readings at least once every 15 minutes and to make the
necessary calculations.
    After review and public comment, the permitting authority approves
the proposed BACT determination, ambient air quality analysis, and
compliance assurance measures. The permitting authority then issues a
PSD permit to the source designating Building 1 as a Green Group.
    This PSD permit provides advance approval under major NSR for the
described changes within the Green Group. However, this major NSR
approval does not address the requirements of the title V permitting
program. Therefore, another step is needed to enable the source to
proceed with these changes without any further review or approval by
the permitting authority.
    Under the second part of the process and (in this example)
concurrent with the PSD permit application, the source submits an
application for a significant permit modification of its part 70
permit. Therein the source proposes to include the advance approvals
under major NSR in the title V permit so as to assure compliance with
all applicable requirements relevant to the anticipated changes. To do
so, this application proposes streamlined requirements to address the
spectrum of changes that could occur within Building 1 and includes a
streamlining demonstration and associated documentation.\68\ In

particular, the application proposes a streamlined emissions limit of
96-percent control of VOC and organic HAP emissions, to be achieved
using the same control strategy proposed as BACT. The streamlining
demonstration and documentation show that this 96-percent reduction
level will assure compliance with all the emissions limits that could
apply to any of the existing, modified, or new equipment in Building 1
(i.e., MACT subpart EE, NSPS subpart SSS, the SIP, and BACT). This
demonstration accounts for the level and format of the emissions limits
(all in terms of percent reduction), the associated test methods (all
are consistent), the averaging time (all are consistent), and the
collection of equipment across which compliance is demonstrated (all
require compliance for each individual piece of equipment).
---------------------------------------------------------------------------

    \68\ As explained above in section VI.A of this preamble and
footnote 26, in White Paper Number 2 we interpreted our part 70
rules to allow sources to streamline multiple applicable
requirements that apply to the same emissions unit(s) into a single
set of requirements that assure compliance with all the subsumed
applicable requirements. Sources that seek to streamline applicable
requirements should submit their request as part of their title V
permit application, identifying the proposed streamlined
requirements and providing a demonstration that the streamlined
requirements assure compliance with all the underlying, subsumed
applicable requirements. Where the source wishes to streamline the
advance approval under NSR with all other relevant applicable
requirements, the same title V permit application can address both
actions.
---------------------------------------------------------------------------

    The streamlining proposal also includes streamlined monitoring,
recordkeeping, and reporting requirements that assure compliance with
the streamlined emissions limit at least as well as the requirements of
the subsumed applicable requirements. In this case, the monitoring
requirements associated with the BACT emissions limit are shown to
assure compliance with the streamlined emissions limit as least as well
as the monitoring applicable to each less-stringent emissions limit.
Similarly, the recordkeeping and reporting associated with the BACT
monitoring approach are appropriate for use with the streamlined limit
and provide no less compliance assurance than would the recordkeeping
and reporting required for any of the subsumed monitoring approaches.
    In this case, where the PSD application and streamlining proposal
are being prepared simultaneously, the source appropriately considered
the other, non-NSR applicable requirements in its permit application
for the BACT emissions limit and associated MRRT requirements so that
as the BACT limit (i.e., 96 percent reduction) meshed with the
streamlined requirements in the part 70 permit application. This
approach simplified the streamlining proposal.
    The part 70 application essentially incorporates the description
contained in the PSD permit which established the Green Group. That is,
it describes the baseline configuration in Building 1, as well as the
types of changes that are anticipated (mirroring the changes approved
in the Green Group PSD permit). The part 70 application also identifies
the streamlined requirements and all the subsumed applicable
requirements implicated by the potential changes (PSD, NSPS subpart
SSS, MACT subpart EE, and the SIP), and indicates that PSD
authorization has been received (or is being concurrently processed).
Any physical or operational changes that implicate different sets of
applicable requirements would be identified as AOSs, as discussed
previously in Example 2. The application proposes terms and conditions
to assure compliance with the streamlined requirements. Focusing these
terms and conditions on the streamlined requirements simplifies both
the application and the resulting permit.
    The magnitude of the authorized emissions increase under the
proposed scenario(s) is bounded by the annual VOC emissions limitation
for the Green Group established at the level of baseline actual
emissions under BACT plus the 100 tpy VOC emissions increase approved
under PSD. Thus, the permit application proposes an aggregate total of
600 tpy VOC. Note that any VOC emissions within Building 1 will count
against this limitation. For purposes of this example, we have assumed
that no debottlenecking effect occurs from emissions units that are not
changed themselves. Traditional NSR (i.e., minor or major NSR, as
applicable) continues to apply outside the Green Group.
    For purposes of the Green Group (which is a single emissions unit
under the PSD regulations proposed), the aggregate total emissions
figure (600 tpy) included in the part 70 application fulfills the part
70 requirement that annual emissions be provided in the application for
each emissions unit. However, because some of the emissions activities
that are included in the Green Group are also subject to other
applicable requirements (i.e., the SIP, NSPS subpart SSS, and/or MACT
subpart EE), they may be considered emissions units for purposes of
these requirements. As a result, the source potentially could be
required to provide the annual emissions in tpy for each of these
smaller emissions units in the part 70 permit. Under the part 70 rule
revisions proposed (see proposed 40 CFR 70.5(c)(3)(iii)), for emissions
units that are under an emissions cap, ``tpy can be reported as part of
the aggregate emissions associated with the cap, except where more
specific information is needed to determine an applicable
requirement.'' Thus, because the application already stipulates that
the emissions activities are subject to these other applicable
requirements, there is no need for the source to include annual
emissions for each of the subject emissions activities.
    The source and the permitting authority then proceed through the
process for a significant permit modification that involves
streamlining and the incorporation of the Green Group permit (i.e., the
advance approval issued under major NSR). After review and public
participation, and after addressing the comments received, the
permitting authority issues a revised title V permit which includes the
streamlined requirements, the Green Group permit terms, and a permit
shield.
    The source subsequently is able to make the authorized changes in
the Green Group/Building 1 without additional review or approval or
permit revisions. Log entries are required if the source makes changes
that cause a shift to a different AOS. Note that the notification
requirements of the NSPS and MACT General Provisions continue to apply
if the source adds a new line or modifies an affected source or
facility within the Green Group.

VIII. What is the effect of these proposed revisions?

A. If these proposed revisions are finalized, what are the implications
for approved part 70 programs?

    The part 70 regulations provide, in pertinent part, that--

    If part 70 is subsequently revised such that the Administrator
determines that it is necessary to require a change to an approved
State program, the required revisions to the program shall be
submitted within 12 months of the final changes to part 70 or within
such other period as authorized by the Administrator.

See 40 CFR 70.4(a); see also 40 CFR 70.4(i).
    The revisions to the part 70 program proposed build upon the
existing regulatory structure, as promulgated in 1992. For the reasons
discussed above, we believe that these proposed revisions clarify the
existing part 70 regulations. Our pilot experience--where we worked
closely with several different States--strongly suggests that these
revisions, if finalized, would likely not necessitate revisions to many
approved State programs. Based on our pilot experience, however, we
recognize that State programs differ, and we believe that at least some
States would likely revise their current part 70 program to add
sufficient authority to implement the final rule or to make current

authority on flexible permits more explicit. We solicit comment on our
initial position that at least some State programs would require
program revisions in response to the final rule.
    We intend to work closely with States and review expeditiously any
documentation submitted regarding the adequacy of current part 70
programs and any proposed program revisions. Nothing precludes State
and local permitting authorities from issuing flexible permits, as they
may have done in the past, but they must determine if sufficient
authority exists under their current operating permit program to do so.
For those States that believe they lack authority under their current
part 70 programs to implement the final rule, such States should submit
proposed revisions to their title V operating permits program to their
EPA Regional Offices within 12 months of the date of publication of the
final rule in the Federal Register. See 40 CFR 70.4(a). For other
States if, based on their subsequent efforts to implement the final
rule, we determine in writing that a particular part 70 program does
not provide sufficient authority to implement the final rule or is
inconsistent with the final rule, then the relevant State will have 12
months from the date of our written determination to submit a proposed
operating permit program consistent with the final rule to us for
review and approval.

B. What are the implications for NSR programs?

    We believe that Green Groups will have environmental and
administrative benefits like those of PALs. Accordingly, we propose
that the Green Groups, like PALs, should be a mandatory program
element. When the Green Group provisions are finalized, this will
require revisions to SIPs or a demonstration that adequate authority
already exists.
    By ``mandatory program element,'' we mean that SIPs must include
provisions providing for the issuance of major NSR permits with Green
Group designations. However, a Green Group would be an option that a
source may, or may not, choose to seek. In addition, a permitting
authority would have discretion as to whether or not to issue a Green
Group permit based on the particulars of each individual case.
    Where States and local agencies would need implementation plan
revisions to be able to issue permits establishing Green Groups, they
must adopt and submit revisions to their part 51 permitting programs
implementing these minimum program elements no later than 3 years from
the date of publication in the Federal Register of the final Green
Group regulations in 40 CFR 51.165 and 51.166. In any area for which we
are the reviewing authority, or for which we have delegated our
authority to issue permits to State or local permitting authorities,
the changes would take effect 60 days from the date of publication in
the Federal Register of the final Green Group regulations in 40 CFR
52.21.
    As we noted in the NSR improvements adopted in 2002, State and
local jurisdictions have significant freedom to customize their NSR
programs (67 FR 80241). Ever since our current NSR regulations were
adopted in 1980, we have taken the position that States may meet the
requirements of part 51 ``with different but equivalent regulations.''
See 45 FR 52676.
    During the interim period between this proposal and finalization of
the proposed rules, we believe that certain major NSR permits with
features similar to a Green Group designation could be approved under
our existing federal PSD regulations at 40 CFR 52.21. Such permits
would have to abide by the existing regulations, including the
restrictions at 40 CFR 52.21(r)(2) and (j)(4), which would differ from
this proposal for Green Groups. Because of the benefits we believe
Green Groups bring, we invite States to whom we have delegated the
federal PSD program, as well as States implementing their own EPA-
approved major NSR programs, to work with us on a case-by-case basis
within the constraints of existing regulations to determine whether and
to what extent Green Group-like permits may be available in this
interim period.

IX. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review

    Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993),
this action is a ``significant regulatory action'' because it is likely
to result in a rule that may raise novel legal or policy issues arising
out of legal mandates, the President's priorities, or the principles
set forth in the Executive Order. Accordingly, EPA submitted this
action to the Office of Management and Budget (OMB) for review under EO
12866 and any changes made in response to OMB recommendations have been
documented in the docket for this action.

B. Paperwork Reduction Act

    This proposed rule would revise several existing rules. The current
information collection requirements of those rules are contained in
three different Information Collection Requests (ICRs). The Office of
Management and Budget (OMB) has approved the information collection
requirements for parts 70 and 71 under the provisions of the Paperwork
Reduction Act, 44 U.S.C. 3501 et seq. The currently approved ICR for
part 70 is assigned ICR number 1587.06 and OMB number 2060-0243; for
part 71, the ICR number is 1713.05 and the OMB number is 2060-0336.
Similarly, OMB has approved information collection requirements for
parts 51 and 52 that govern the State and Federal programs for
preconstruction review and permitting of major new and modified sources
pursuant to part C (PSD) and part D (nonattainment major NSR) of title
I of the CAA. The currently approved ICR for parts 51 and 52 is
assigned ICR number 1230.17 and OMB number 2060-0003.
    The information collection requirements in this proposed rule have
been submitted for approval to OMB under the Paperwork Reduction Act,
44 U.S.C. 3501 et seq. The ICR documents prepared by EPA have been
assigned EPA ICR numbers 1587.08, 1713.07, and 1230.20.
    The total economic impact of the proposed Flexible Air Permitting
Rule over the three-year term of the ICR is estimated to be $36 million
in cost savings for sources with a burden reduction of approximately
943,000 labor hours; $19 million in cost savings for permitting
authorities with a burden reduction of approximately 514,000 labor
hours; and costs of $1.4 million with an increase in burden of
approximately 37,000 labor hours for EPA.
    Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal Agency. This includes the time
needed to: (1) Review instructions; (2) develop, acquire, install, and
utilize technology and systems for the purposes of collecting,
validating, and verifying information, processing and maintaining
information, and disclosing and providing information; (3) adjust the
existing ways to comply with any previously applicable instructions and
requirements; (4) train personnel to be able to respond to a collection
of information; (5) search data sources; (6) complete and review the
collection of information; and (7) transmit or otherwise disclose the
information.
    An Agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB

control number. The OMB control numbers for EPA's regulations are
listed in 40 CFR part 9 and 48 CFR Chapter 15.
    To comment on the Agency's need for this information, the accuracy
of the provided burden estimates, and any suggested methods for
minimizing respondent burden, including the use of automated collection
techniques, EPA has established a public docket for this rule, which
includes this ICR, under Docket ID number EPA-HQ-OAR-2004-0087. Submit
any comments related to the ICR for this proposed rule to EPA and OMB.
See the ADDRESSES section at the beginning of this notice for where to
submit comments to EPA. Send comments to OMB at the Office of
Information and Regulatory Affairs, Office of Management and Budget,
725 17th Street, NW., Washington, DC 20503, Attention: Desk Office for
EPA. Since OMB is required to make a decision concerning the ICR
between 30 and 60 days after September 12, 2007, a comment to OMB is
best assured of having its full effect if OMB receives it by October
12, 2007. The final rule will respond to any OMB or public comments on
the information collection requirements contained in this proposal.

C. Regulatory Flexibility Act (RFA)

    The RFA generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to notice and comment
rulemaking requirements under the Administrative Procedure Act or any
other statute unless the Agency certifies that the rule will not have
``a significant economic impact on a substantial number of small
entities.'' Small entities include small businesses, small
organizations, and small government jurisdictions.
    For purposes of assessing the impacts of this proposal on small
entities, a small entity is defined as: (1) A small business as defined
by the Small Business Administration's regulations at 13 CFR 121.201;
(2) a small governmental jurisdiction that is a government of a city,
county, town, school district or special district with a population of
less than 50,000; and (3) a small organization that is any not-for-
profit enterprise which is independently owned and operated and is not
dominant in its field.
    This proposed rule would merely clarify existing requirements and
allow regulated entities to seek additional flexibility for their Clean
Air Act permits, and would not create a new burden for regulated
entities. We have determined there will be cost savings for small
entities associated with these proposed revisions. After considering
the economic impact of this proposed rule on small entities, I certify
that this action will not have a significant economic impact on a
substantial number of small entities. Therefore, a regulatory
flexibility analysis is not required.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and tribal
governments and the private sector. Under section 202 of the UMRA, 2
U.S.C. 1532, we generally must prepare a written statement, including a
cost-benefit analysis, for any proposed or final rule that ``includes
any Federal mandate that may result in the expenditure by State, local,
and tribal governments, in the aggregate, or by the private sector, of
$100 million or more * * * in any one year.'' A ``Federal mandate'' is
defined to include a ``Federal intergovernmental mandate'' and a
``Federal private sector mandate.'' 2 U.S.C. 658(6). A ``Federal
intergovernmental mandate,'' in turn, is defined to include a
regulation that ``would impose an enforceable duty upon State, local,
or tribal governments,'' 2 U.S.C. 658(5)(A)(i), except for, among other
things, a duty that is ``a condition of Federal assistance.'' 2 U.S.C.
658(5)(A)(i)(I). A ``Federal private sector mandate'' includes a
regulation that ``would impose an enforceable duty upon the private
sector,'' with certain exceptions [2 U.S.C. 658(7)(A)].
    Before promulgating a rule for which a written statement is needed,
section 205 of the UMRA generally requires us to identify and consider
a reasonable number of regulatory alternatives and adopt the least-
costly, most cost-effective, or least-burdensome alternative that
achieves the objectives of the rule. The provisions of section 205 do
not apply where they are inconsistent with applicable law. Moreover,
section 205 allows us to adopt an alternative other than the least-
costly, most cost-effective, or least-burdensome alternative if the
Administrator publishes with the final rule an explanation why that
alternative was not adopted. Before we establish any regulatory
requirements that may significantly or uniquely affect small
governments, including tribal governments, we must have developed under
section 203 of the UMRA a small government agency plan. The plan must
provide for notifying potentially affected small governments, enabling
officials of affected small governments to have meaningful and timely
input in the development of our regulatory proposals with significant
Federal intergovernmental mandates, and informing, educating, and
advising small governments on compliance with the regulatory
requirements.
    We have determined under the regulatory provisions of title II of
the UMRA that this proposed rule does not include a Federal mandate
that may result in estimated costs of $100 million or more to either
State, local, or tribal governments in the aggregate, or to the private
sector. This proposed rule is estimated to save State, local, and
tribal permitting authorities over $5 million and to result in an
administrative burden reduction of 135,000 hours. Thus, this proposed
rule is not subject to the requirements of sections 202 or 205 of the
UMRA.
    In addition, we have determined that this proposed rule contains no
regulatory requirements that might significantly or uniquely affect
small governments. We expect any impact will act to lower overall
administrative burden to these entities. Therefore, this proposed rule
is not subject to the requirements of section 203 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires us to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the
Executive Order to include regulations that have ``substantial direct
effects on the States, or on the distribution of power and
responsibilities among the various levels of government.''
    This proposal does not have federalism implications. It will not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132. This proposal should result in
cost savings and administrative burden reductions for States and will
not alter the overall relationship or distribution of powers between
governments for the part 70 and part 71 operating permits programs or
for the part 51 and part 51 NSR programs. Thus, Executive Order 13132
does not apply to this proposed rule.
    In the spirit of Executive Order 13132, and consistent with our
policy to

promote communication between us and State and local governments, we
specifically solicit comment on this proposed rule from State and local
officials.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, ``Consultation and Coordination with Indian
Tribal Governments'' (65 FR 67249, November 6, 2000), requires us to
develop an accountable process to ensure ``meaningful and timely input
by tribal officials in the development of regulatory policies that have
tribal implications.'' ``Policies that have tribal implications'' is
defined in the Executive Order to include regulations that have
``substantial direct effects on one or more Indian tribes, on the
relationship between the Federal government and the Indian tribes, or
on the distribution of power and responsibilities between the Federal
government and Indian tribes.''
    These proposed rule revisions do not have tribal implications
because they will not have a substantial direct effect on one or more
Indian tribes, on the relationship between the Federal government and
Indian tribes, or on the distribution of power and responsibilities
between the Federal government and Indian tribes, as specified in
Executive Order 13175. This action does not significantly or uniquely
affect the communities of Indian tribal governments. Accordingly, the
requirements of Executive Order 13175 do not apply to these proposed
rule revisions. We solicit comments from Indian tribal governments on
the proposed rule.

G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    This proposed rule is not subject to the Executive Order because it
is not economically significant as defined in Executive Order 12866,
and because the Agency does not have reason to believe the
environmental health or safety risks addressed by this action present a
disproportionate risk to children because it does not establish an
environmental standard intended to mitigate health or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This rule is not subject to Executive Order 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution, or Use'' (66 FR 28355, May 22, 2001) because it is not a
significant regulatory action under Executive Order 12866.
    This proposed rule is not a ``significant energy action,'' as
defined in Executive Order 13211, because it is not likely to have a
significant adverse effect on the supply, distribution, or use of
energy. As noted earlier, this action would simply clarify existing
requirements and would not impose any new requirements, and thus would
not affect the supply, distribution, or use of energy.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), Public Law No. 104-113, directs us to use
voluntary consensus standards in its regulatory activities unless to do
so would be inconsistent with applicable law or otherwise impractical.
Voluntary consensus standards are technical standards (e.g., materials
specifications, test methods, sampling procedures, and business
practices) that are developed or adopted by voluntary consensus bodies.
The NTTAA directs us to provide Congress, through OMB, explanations
when the Agency decides not to use available and applicable voluntary
consensus standards.
    The NTTAA does not apply to this proposed rule because it does not
involve technical standards. Therefore, we did not consider the use of
any voluntary consensus standards.

List of Subjects

40 CFR Part 51

    Environmental protection, Administrative practice and procedures,
Air pollution control, Intergovernmental relations, Reporting and
recordkeeping requirements.

40 CFR Part 52

    Environmental protection, Administrative practice and procedures,
Air pollution control, Intergovernmental relations, Reporting and
recordkeeping requirements.

40 CFR Part 70

    Environmental protection, Administrative practice and procedures,
Air pollution control, Intergovernmental relations, Reporting and
recordkeeping requirements.

40 CFR Part 71

    Environmental protection, Administrative practice and procedures,
Air pollution control, Intergovernmental relations, Reporting and
recordkeeping requirements.

    Dated: August 28, 2007.
Stephen L. Johnson,
Administrator.
    For the reasons set out in the preamble, title 40, chapter I of the
Code of Federal Regulations is proposed to be amended as set forth
below.

PART 51--[AMENDED]

    1. The authority citation for part 51 continues to read as follows:

    Authority: 23 U.S.C. 101; 42 U.S.C. 7401-7671q.

Subpart I--[Amended]

    2. Section 51.165 is amended as follows:
    a. By adding paragraph (a)(1)(v)(G);
    b. By revising paragraph (a)(1)(xii)(A);
    c. By revising paragraph (a)(1)(xxxv)(D);
    d. By revising paragraph (a)(2)(ii)(A);
    e. By adding paragraph (a)(2)(v);
    f. By revising paragraph (a)(6) introductory text; and
    g. By adding paragraph (i).
    The additions and revisions read as follows:

Sec.  51.165  Permit requirements.

    (a) * * *
    (1) * * *
    (v) * * *
    (G) This definition shall not apply to approved physical changes or
changes in the method of operation within a Green Group with respect to
any Green Group pollutant when the major stationary source is complying
with the requirements under paragraph (i) of this section for a Green
Group for that pollutant.
* * * * *
    (xii)(A) Actual emissions means the actual rate of emissions of a
regulated NSR pollutant from an emissions unit, as determined in
accordance with paragraphs (a)(1)(xii)(B) through (D) of this section,
except that this definition shall not apply for calculating whether a
significant emissions increase has occurred, or for establishing a PAL
under paragraph (f) of this section or a Green Group under paragraph
(i) of this section. Instead, paragraphs (a)(1)(xxviii) and (xxxv) of
this section shall apply for those purposes.
* * * * *
    (xxxv) * * *
    (D) For a PAL or Green Group 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 (a)(1)(xxxv)(A) of this section, for other
existing emissions units in accordance with the

procedures contained in paragraph (a)(1)(xxxv)(B) of this section, and
for a new emissions unit in accordance with the procedures contained in
paragraph (a)(1)(xxxv)(C) of this section.
* * * * *
    (2) * * *
    (ii) * * *
    (A) Except as otherwise provided in paragraphs (a)(2)(iii) through
(v) of this section, and consistent with the definition of major
modification contained in paragraph (a)(1)(v)(A) of this section, a
project is a major modification for a regulated NSR pollutant if it
causes two types of emissions increases--a significant emissions
increase (as defined in paragraph (a)(1)(xxvii) of this section), and a
significant net emissions increase (as defined in paragraphs (a)(1)(vi)
and (x) of this section). The project is not a major modification if it
does not cause a significant emissions increase. If the project causes
a significant emissions increase, then the project is a major
modification only if it also results in a significant net emissions
increase.
* * * * *
    (v) The plan shall require that for any major stationary source
with a Green Group for a regulated NSR pollutant, the owner or operator
shall comply with the requirements in paragraph (i) of this section for
those emissions activities included within the Green Group.
* * * * *
    (6) Each plan shall provide that the following specific provisions
apply to projects at existing emissions units at a major stationary
source (other than projects at a Green Group 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 (a)(1)(xxviii)(B)(1) through (3) of this
section for calculating projected actual emissions. Deviations from
these provisions will be approved only if the State specifically
demonstrates that the submitted provisions are more stringent than or
at least as stringent in all respects as the corresponding provisions
in paragraphs (a)(6)(i) through (v) of this section.
* * * * *
    (i) Green Groups. The plan shall provide for Green Groups according
to the provisions in paragraphs (i)(1) through (17) of this section.
    (1) Applicability. The reviewing authority may issue a permit under
regulations approved pursuant to this section designating a Green Group
at any existing major stationary source if the permit contains terms
and conditions assuring that the Green Group meets the requirements in
paragraphs (i)(1) through (17) of this section.
    (i) Changes at a Green Group. Any physical change in or change in
the method of operation authorized for a Green Group pursuant to the
requirements in paragraphs (i)(1) through (17) of this section that
maintains the Green Group's total emissions at or below the Green Group
emissions limit and maintains the Green Group's compliance with its
LAER limit(s):
    (A) Is not a major modification for the Green Group pollutant; and
    (B) Does not have to be approved through the plan's nonattainment
major NSR program.
    (ii) Prior requirements. A major stationary source shall continue
to comply with all remaining applicable Federal or State requirements,
emissions limitations, and work practice requirements that were
established prior to the effective date of the Green Group.
    (2) Definitions. The plan shall use the definitions in paragraphs
(i)(2)(i) through (iv) of this section for the purpose of developing
and implementing regulations that authorize the use of Green Groups
consistent with paragraphs (i)(1) through (17) of this section. When a
term is not defined in these paragraphs, it shall have the meaning
given in paragraph (a)(1) or (f) of this section or in the Act.
    (i) Green Group means a group of new and/or existing emissions
activities that is characterized by use of a common, dedicated air
pollution control device and that has been designated as a Green Group
by the reviewing authority in a permit issued under regulations
approved pursuant to this section. A Green Group is a single emissions
unit for purposes of this section.
    (ii) Green Group pollutant means a pollutant emitted from the
emissions activities that comprise the Green Group and for which a
Green Group is designated at a major stationary source.
    (iii) Green Group permit means the major NSR permit issued by the
reviewing authority that establishes a Green Group for a major
stationary source.
    (iv) Green Group emissions limit means an emissions limitation for
the Green Group pollutant, expressed in tons per year, that is
enforceable as a practical matter and established for a Green Group at
a major stationary source in accordance with paragraphs (i)(1) through
(17) of this section.
    (3) Permit application requirements. The owner or operator of a
major stationary source must request approval for a Green Group in an
application for a major NSR permit that meets the requirements of this
section, as applicable, and of sections 172(c)(5) and 173 of the Act.
As part of a permit application requesting a Green Group, the owner or
operator of a major stationary source shall submit the following
information to the reviewing authority for approval:
    (i) List of designated emissions activities. A list of the
emissions activities proposed for inclusion in the Green Group. In
addition, the owner or operator of the source shall indicate which, if
any, Federal or State applicable requirements, emissions limitations,
or work practices apply to each activity.
    (ii) Baseline actual emissions. Calculations of the baseline actual
emissions from included emissions activities (with supporting
documentation). Baseline actual emissions are to include emissions
associated not only with operation of the activity, but also emissions
associated with startup, shutdown, and malfunction.
    (iii) Monitoring data conversion procedures. 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 (i)(15)(i) of this section.
    (iv) Description. A description of the equipment that comprises the
Green Group, including a description of existing emissions activities,
proposed physical changes or changes in method of operation (which may
include the addition of new emissions activities), and the common air
pollution control device. The description must provide information
about maximum total emissions that will be generated by the Green
Group's emissions activities and the associated characteristics of the
combined emissions streams (including the worst-case emissions stream)
that will be ducted to the common air pollution control device. The
description must be sufficient:
    (A) To allow the reviewing authority to distinguish changes
proposed to be authorized in the Green Group from unauthorized changes;
and
    (B) To enable the reviewing authority to determine LAER for the
Green Group consistent with paragraphs (i)(4)(ii) and (i)(7)(v) of this
section.
    (v) Control technology demonstration. A demonstration that the
proposed

control technology represents LAER. Such a demonstration shall confirm
that the emissions reduction capacity of the proposed common control
device is sufficient to meet the relevant emissions reduction
requirement, considering the maximum total emissions from the Green
Group and the associated characteristics of the combined emissions
streams that will be ducted to the common air pollution control device.
The LAER demonstration shall be based on worst-case emissions from the
new and existing emissions activities authorized for the Green Group.
    (vi) Monitoring system. A proposed monitoring system sufficient to
meet the requirements of paragraph (i)(13) of this section with respect
to Green Group emissions limit(s) and the requirements of paragraph
(i)(14) of this section with respect to LAER-related limitations.
    (vii) Proposed Green Group emissions limit. The proposed Green
Group emissions limit, in tons per year, with supporting documentation
including, but not limited to, the following:
    (A) Baseline actual emissions of existing emissions activities
proposed to be included in the Green Group, adjusted to reflect the
application of LAER; and
    (B) The amount of emissions growth proposed for the Green Group as
the result of the proposed physical, operational, and other changes.
    (4) General requirements for designating a Green Group. The plan
shall provide that the reviewing authority may designate a Green Group
at an existing major stationary source through issuance of a
nonattainment major NSR permit under regulations approved pursuant to
this section, provided that in addition the requirements in paragraphs
(i)(4)(i) through (vii) of this section are met.
    (i) Green Group emissions limit. The reviewing authority,
consistent with regulations approved pursuant to paragraph (i)(6) of
this section, shall establish a Green Group emissions limit in tons per
year for those emissions activities included under the Green Group
(including any new emissions activities added within the Green Group).
For each month during the Green Group effective period after the first
12 months of establishing the Green Group, the major stationary source
owner or operator shall show that the sum of the monthly emissions from
each included emissions activity for the previous 12 consecutive months
is less than or equal to the Green Group emissions limit (i.e., a 12-
month total, rolled monthly). For each month during the first 11 months
from the Green Group effective date, the major stationary source owner
or operator shall show that the sum of the preceding monthly emissions
from the Green Group effective date for each emissions activity under
the Green Group is less than or equal to the Green Group emissions
limit.
    (ii) LAER emissions limit. The reviewing authority shall determine
LAER for the emissions of the Green Group pollutant from the group of
emissions activities designated as a Green Group. The LAER emissions
limit shall ensure that the emissions of the emissions activities
included in the Green Group are ducted to a common, dedicated air
pollution control device. The control device, in combination with any
additional control measures consistent with paragraphs (i)(4)(ii)(A)
and (B) of this section, must achieve the LAER level of emissions
reductions for the Green Group pollutant.
    (A) In addition to the requirement to duct emissions from the Green
Group to a common air pollution control device, additional control
measures such as pollution prevention (as defined under paragraph
(a)(1)(xxvi) of this section), work practices, and/or operational
standards may be defined as part of the approved control measures.
    (B) Pollution prevention measures that have been determined to
represent LAER may be approved to apply during certain periods of
operation. The included emissions activities must have ductwork
extending to the common air pollution control device, but the owner or
operator would be allowed to bypass the control device during periods
when the pollution prevention alternative is in use, consistent with
the LAER determination. Emissions activities that exclusively use the
pollution prevention alternative and never use the common air pollution
control device may not be included in the Green Group.
    (iii) Permit content. The Green Group permit shall contain all the
requirements of paragraph (i)(7) of this section.
    (iv) Included emissions. The Green Group emissions limit shall
include fugitive emissions of the Green Group pollutant, to the extent
quantifiable, from all emissions activities included under the Green
Group.
    (v) Regulated pollutant. Each Green Group shall regulate emissions
of only one pollutant. However, the same collection of emissions
activities may be designated separately as a Green Group for another
pollutant.
    (vi) Effective period. Each Green Group designation shall have an
effective period of 10 years.
    (vii) Monitoring, recordkeeping, and reporting. The Green Group
permit shall require the owner or operator to comply with the
monitoring, recordkeeping, and reporting requirements in paragraphs
(i)(13) through (16) of this section for each included emissions
activity.
    (5) General provisions for Green Groups. The plan shall require
that the provisions set out in paragraphs (i)(5)(i) through (iv) of
this section apply to Green Groups:
    (i) Any project for which the owner or operator begins actual
construction after the effective date of a Green Group designation and
before its expiration date will be considered to have occurred while
the emissions unit was a Green Group.
    (ii) At no time (during or after the Green Group effective period)
are emissions reductions of a Green Group pollutant that occur during
the Green Group effective period creditable as decreases for purposes
of offsets under paragraph (a)(3)(ii) of this section unless the Green
Group emissions limit is reduced by the amount of such emissions
reductions and such reductions would be creditable in the absence of
the Green Group designation. No emissions reduction credit can be
generated for emissions growth that was authorized under the Green
Group permit, but never realized.
    (iii) At no time (during or after the Green Group effective period)
are emissions increases or reductions of a Green Group pollutant that
occur during the Green Group effective period creditable for purposes
of calculating a net emissions increase under paragraph (a)(1)(vi) of
this section (that is, must not be used in a ``netting analysis''),
unless the Green Group emissions limit is reduced by the amount of such
emissions reductions and such reductions would be creditable in the
absence of the Green Group designation. No emissions reduction credit
can be generated for emissions growth that was authorized under the
Green Group permit, but never realized.
    (iv) The Green Group 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 Green Group is located in an attainment
area and the area is redesignated to nonattainment, its Green Group
designation is not affected. Similarly, redesignation from
nonattainment to attainment does not affect the Green Group
designation. However, if an existing Green Group designation expires,
it must re-qualify under the requirements that are currently applicable
in the area.

    (6) Setting the 10-year Green Group emissions limit. The plan shall
provide that the Green Group emissions limit is to be established as
follows:
    (i) Except as provided in paragraphs (i)(6)(ii) through (iv) of
this section, the Green Group emissions limit shall be established as
the sum of the baseline actual emissions (as defined in paragraph
(a)(1)(xxxv) of this section) of the Green Group pollutant for each
emissions activity included in the Green Group. When establishing the
Green Group emissions limit, for a Green Group pollutant, a single
period of 24 consecutive months must be used to determine the baseline
actual emissions for all existing emissions activities. However, a
different period of 24 consecutive months may be used for each
different Green Group pollutant. Emissions associated with activities
that were permanently shut down after this 24-month period must be
subtracted from the Green Group emissions limit. The reviewing
authority shall specify a reduced Green Group emissions limit(s) (in
tons/yr) in the Green Group 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 Green Group permit.
    (ii) For activities (which do not include modifications to existing
units) on which actual construction began after the 24-month period, in
lieu of adding the baseline actual emissions as specified in paragraph
(i)(6)(i) of this section, the emissions must be added to the Green
Group emissions limit in an amount equal to the potential to emit of
the activities.
    (iii) The reviewing authority shall establish the Green Group
emissions level by adjusting the total derived according to paragraphs
(i)(6)(i) and (ii) of this section to reflect:
    (A) The application of LAER; and
    (B) An additional amount of actual emissions consistent with the
growth approved for the Green Group.
    (7) Content of the Green Group permit. The plan shall require that
the Green Group permit contain the elements listed in paragraphs
(i)(7)(i) through (xiii) of this section and any other provisions that
the reviewing authority deems necessary to implement the Green Group.
    (i) The Green Group pollutant.
    (ii) A description of the equipment that comprises the Green Group,
including a description of existing emissions activities, any
authorized physical changes or changes in method of operation, and the
common air pollution control device. The description must provide
information about the maximum total emissions that will be generated by
the Green Group's emissions activities and the associated
characteristics of the combined emissions streams that will be ducted
to the common air pollution control device. The description must be
sufficient to distinguish, when a change is subsequently made in the
Green Group, whether that change was authorized under the Green Group
permit.
    (iii) A statement designating the described equipment as a Green
Group.
    (iv) The Green Group emissions limit (in terms of a 12-month total,
rolled monthly) for the group of emissions activities included under
the Green Group.
    (v) All emissions limitations and work practice requirements
established to ensure that LAER is met.
    (vi) The Green Group effective date and the expiration date of the
Green Group (i.e., the Green Group effective period). If the source
owner or operator must construct a new air pollution control device or
modify an existing device as a result of the LAER determination for the
Green Group, the permit may provide that the existing emissions
activities within the Green Group are not required to meet the LAER
emissions limitation(s) or the Green Group emissions limit until the
new or modified air pollution control device is in operation. (That is,
such emissions activities may continue to meet pre-existing emissions
limitations until that time.) However, new and modified emissions
activities within the Green Group must be subject to LAER upon startup.
In addition, the Green Group must be subject to the Green Group
emissions limit (and associated monitoring, recordkeeping, and
reporting requirements) beginning at the time that the new or modified
air pollution control device is placed in operation.
    (vii) Specification in the Green Group permit that if a major
stationary source owner or operator applies to renew a Green Group in
accordance with paragraph (i)(11) of this section before the end of the
effective period, then the Green Group shall not expire at the end of
the effective period. It shall remain in effect until a new Green Group
permit is issued by the reviewing authority.
    (viii) A requirement that emissions calculations for compliance
purposes must include emissions from startups, shutdowns, and
malfunctions.
    (ix) A requirement that, once the Green Group expires, the major
stationary source is subject to the requirements of paragraph (i)(10)
of this section.
    (x) 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 as required by paragraph (i)(15)(i) of this section.
    (xi) A requirement that the major stationary source owner or
operator meet all applicable requirements for monitoring, testing, and
operation in accordance with the provisions of paragraphs (i)(13) and
(14) of this section.
    (xii) A requirement to retain the records required under paragraph
(i)(15) of this section on site. Such records may be retained in an
electronic format.
    (xiii) A requirement to submit the reports required under paragraph
(i)(16) of this section by the required deadlines.
    (8) Green Group effective period. The plan shall require that the
reviewing authority specify an effective period of 10 years. The
effective period begins upon the Green Group effective date, which is
the date that the Green Group permit becomes effective.
    (9) Reopening of the Green Group permit. The plan shall provide
that the requirements in paragraphs (i)(9)(i) through (iii) of this
section apply to reopening Green Group permits.
    (i) Mandatory reopenings. During the Green Group effective period,
the reviewing authority must reopen the Green Group permit to:
    (A) Correct typographical/calculation errors made in setting the
Green Group emissions limit or reflect a more accurate determination of
emissions used to establish this limit;
    (B) Reduce the Green Group emissions limit if the owner or operator
of the major stationary source creates creditable emissions reductions
for use as offsets under paragraph (a)(3)(ii) of this section; and
    (C) Reduce the Green Group emissions limit if the owner or operator
of the major stationary source creates creditable emissions reductions
for use in a netting analysis under paragraph (a)(1)(vi) of this
section.
    (ii) Discretionary reopenings. The reviewing authority shall have
discretion to reopen the Green Group permit for the purposes listed in
paragraphs (i)(9)(ii)(A) through (C) of this section. If the reviewing
authority declines to reopen the Green Group permit for any of these
purposes, the Green Group emissions limit must be adjusted upon
expiration of the Green Group designation or upon renewal of the
source's title V permit, whichever

comes first. The major stationary source owner or operator is
responsible for compliance with any new applicable requirements,
regardless of when the permit is reopened and adjusted.
    (A) To reduce the Green Group emissions limit to reflect newly
applicable Federal requirements (for example, NSPS) with compliance
dates after the Green Group effective date;
    (B) To reduce the emissions limit 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 State
Implementation Plan; and
    (C) To reduce the emissions limit 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.
    (iii) Required process. Except for the permit reopening in
paragraph (i)(9)(i)(A) of this section for the correction of
typographical/calculation errors that do not increase the Green Group
emissions limit, all other reopenings shall be carried out in
accordance with the full public participation requirements for major
NSR permitting under the regulations approved pursuant to this section.
    (10) Expiration of a Green Group. The plan shall require that any
Green Group designation that is not renewed in accordance with the
procedures in paragraph (i)(11) of this section shall expire at the end
of its effective period. After expiration of the Green Group
designation, the following provisions apply:
    (i) The emissions unit defined by the Green Group remains an
emissions unit for purposes of major NSR and remains subject to the
LAER control requirements; Green Group emissions limit; any shorter-
term emissions limits; and monitoring, recordkeeping, reporting, and
testing requirements imposed by the Green Group permit.
    (ii) The major stationary source owner or operator shall continue
to comply with any State or Federal applicable requirements (LAER,
RACT, NSPS, etc.) that may have applied either during or prior to the
Green Group effective period.
    (iii) Any subsequent physical change or change in the method of
operation at the emissions unit defined by the Green Group will be
subject to nonattainment major NSR requirements if such change meets
the definition of major modification in paragraph (a)(1)(v) of this
section.
    (11) Renewal of a Green Group. The plan shall require that the
following provisions apply to renewal of a Green Group:
    (i) Required procedures. A Green Group may be renewed through
issuance of a new major NSR permit according to all the requirements of
this paragraph (i) for the initial Green Group designation.
    (ii) Application deadline. A major stationary source owner or
operator shall submit a timely application to the reviewing authority
to request renewal of a Green Group. A timely application is one that
is submitted at least 6 months prior to, but not earlier than 18 months
from, the date that the Green Group designation would otherwise expire.
This deadline for application submittal is to ensure that the Green
Group designation will not expire before the Green Group is renewed. If
the owner or operator of a major stationary source submits a complete
application to renew the Green Group within this time period, then the
Green Group shall continue to be effective until the new nonattainment
major NSR permit with the renewed Green Group is issued.
    (12) Increasing a Green Group emissions limit during its effective
period. The plan shall provide that the reviewing authority may
increase a Green Group emissions limit during its effective period only
if the increase is contained in a new permit incorporating the increase
into a new Green Group consistent with the requirements of the
regulations approved pursuant to this section.
    (13) Monitoring requirements for Green Group emissions limitations.
The plan shall provide that the following monitoring requirements apply
to Green Groups.
    (i) General requirements.
    (A) Each Green Group permit must contain enforceable requirements
for the monitoring system that accurately determines, in terms of mass
per unit of time, emissions of the Green Group pollutant from the
emissions activities under the Green Group. Any monitoring system
authorized for use in the Green Group permit must be based on sound
science and meet generally acceptable scientific procedures for data
quality and manipulation. Additionally, the information generated by
such system must meet minimum legal requirements for admissibility in a
judicial proceeding to enforce the Green Group permit.
    (B) The Green Group monitoring system must employ one or more of
the four general monitoring approaches meeting the minimum requirements
set forth in paragraphs (i)(13)(ii)(A) through (D) of this section and
must be approved by the reviewing authority.
    (C) Notwithstanding paragraph (i)(13)(i)(B) of this section, you
may also employ an alternative monitoring approach that meets paragraph
(i)(13)(i)(A) of this section if approved by the reviewing authority.
    (D) Failure to use a monitoring system that meets the requirements
of this section renders the Green Group 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 (i)(13)(iii) through (ix) of this section:
    (A) Mass balance calculations for activities using coatings or
solvents;
    (B) CEMS;
    (C) CPMS or PEMS; and
    (D) Emissions factors.
    (iii) Mass balance calculations. An owner or operator using mass
balance calculations to monitor the Green Group pollutant emissions
from activities using coating or solvents shall meet the following
requirements:
    (A) Provide a demonstrated means of validating the published
content of the Green Group pollutant that is contained in or created by
all materials used in or at the emissions activity;
    (B) Assume that the emissions activity emits all of the Green Group
pollutant that is contained in or created by any raw material or fuel
used in or at the emissions activity, 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 activity, publishes a range of pollutant content from
such material, the owner or operator must use the highest value of the
range to calculate the Green Group 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 Green Group
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 activity is operating.

    (v) CPMS or PEMS. An owner or operator using CPMS or PEMS to
monitor Green Group pollutant emissions shall meet the following
requirements:
    (A) The CPMS or the PEMS must be based on current site-specific
data demonstrating a correlation between the monitored parameter(s) and
the Green Group pollutant emissions across the range of operation of
the emissions activity; 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 activity is operating.
    (vi) Emissions factors. An owner or operator using emissions
factors to monitor Green Group pollutant emissions shall meet the
following requirements:
    (A) All emissions factors shall be adjusted, if appropriate, to
account for the degree of uncertainty or limitations in the factors'
development;
    (B) The emissions activity shall operate within the designated
range of use for the emissions factor, if applicable; and
    (C) If technically practicable, the owner or operator of a
significant or major emissions activity that relies on an emissions
factor to calculate Green Group pollutant emissions shall conduct
validation through performance testing or other scientifically valid
means approved by the reviewing authority to determine a site-specific
emissions factor. Such testing or other means shall occur within 6
months of Green Group permit issuance.
    (vii) Missing data procedures. A source owner or operator must
record and report maximum potential emissions without considering
enforceable emissions limitations or operational restrictions for an
emissions activity during any period of time that there is no
monitoring data, unless another method for determining emissions during
such periods is specified in the Green Group permit.
    (viii) Alternative requirements. Notwithstanding the requirements
in paragraphs (i)(13)(iii) through (vii) of this section, where an
owner or operator of an emissions activity cannot demonstrate a
correlation between the monitored parameter(s) and the Green Group
pollutant emissions rate at all operating points of the emissions
activity, the reviewing authority shall, at the time of permit
issuance:
    (A) Establish default value(s) for determining compliance with the
Green Group emissions limit based on the highest potential emissions
reasonably estimated at such operating point(s); or
    (B) Determine that operation of the emissions activity during
operating conditions when there is no correlation between monitored
parameter(s) and the Green Group pollutant emissions is a violation of
the Green Group emissions limit.
    (ix) Re-validation. All data used to establish the Green Group
pollutant emissions 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 Green Group.
    (14) Additional monitoring requirements for LAER. The plan shall
provide that the permit must also require the owner or operator with a
Green Group to monitor, measure, and record data sufficient to
determine whether:
    (i) The emissions reduction measures (including the Green Group air
pollution control device) meet the emissions limitations and/or work
practice requirements adopted in conjunction with LAER; and
    (ii) The demonstrated capacity of the Green Group air pollution
control device was exceeded by the emissions stream(s) directed to it
at any time during the reporting period. The capacity of the control
device is considered exceeded if the characteristics of the emissions
stream entering the device are outside the range for which it has been
demonstrated that the device can achieve LAER, absent valid monitoring
data (from a continuous monitoring system or other monitoring approach
approved for such use by the reviewing authority) showing compliance
with LAER at the new operating level. A period of exceedance is
considered a deviation for purposes of recordkeeping and reporting.
    (15) Recordkeeping requirements. The plan shall require that the
following recordkeeping requirements apply to Green Groups:
    (i) Records to determine compliance. The Green Group permit shall
require an owner or operator to retain a copy of all records necessary
to determine compliance with any requirement of paragraph (i) of this
section and of the Green Group permit, including a determination of
each emissions activity's 12-month rolling total emissions, for 5 years
from the date of such record.
    (ii) Other records. The Green Group permit shall require an owner
or operator to retain a copy of the following records for the duration
of the Green Group effective period plus 5 years:
    (A) A copy of the Green Group permit application and any
applications for revisions to the Green Group permit; and
    (B) Each annual certification of compliance pursuant to title V and
the data relied on in certifying the compliance.
    (16) Reporting and notification requirements. The plan shall
require the owner or operator to 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 (i)(16)(i) through (iii) of this
section.
    (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 (i)(16)(i)(A) through (G) of this section.
    (A) The identification of owner and operator and the permit number.
    (B) Total annual emissions (tons per year) from the emissions
activities included under the Green Group, based on a 12-month rolling
total for each month in the reporting period recorded pursuant to
paragraph (i)(15)(i) of this section.
    (C) All data relied upon, including, but not limited to, any
Quality Assurance or Quality Control data, in calculating the monthly
and annual Green Group pollutant emissions.
    (D) A list of any emissions activities included under the Green
Group that were added 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 activity monitored by the monitoring system continued to
operate, and the calculation of the emissions of the pollutant or the
number determined by the method included in the permit, as provided by
paragraph (i)(13)(vii) of this section.
    (G) A signed statement by the responsible official (as defined by
the applicable title V operating permit

program) certifying the truth, accuracy, and completeness of the
information provided in the report.
    (ii) Deviation report. The major stationary source owner or
operator shall promptly submit reports of any deviations or exceedance
of the Green Group emissions limit or emissions reduction requirement
(e.g., LAER limit), including periods where no monitoring is available.
A report submitted pursuant to Sec.  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 Sec.  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 Green Group 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.
    (17) Transition requirements. The plan shall provide that the
reviewing authority may not issue a Green Group permit that does not
comply with the requirements in paragraphs (i)(1) through (17) of this
section or their equivalent after the Administrator has approved
regulations incorporating these requirements into the plan. The plan
shall provide that the reviewing authority may supersede any Green
Group permit that was established prior to the date of approval of the
plan by the Administrator with a Green Group permit that complies with
the requirements of paragraphs (i)(1) through (17) of this section.
    3. Section 51.166 is amended as follows:
    a. By revising paragraph (a)(7)(iv)(a);
    b. By adding paragraph (a)(7)(vii);
    c. By adding paragraph (b)(2)(v);
    d. By revising paragraph (b)(21)(i);
    e. By revising paragraph (b)(47)(iv);
    f. By revising paragraph (r)(6) introductory text; and
    g. By adding paragraph (z).
    The additions and revisions read as follows:

Sec.  51.166  Prevention of significant deterioration of air quality.

    (a) * * *
    (7) * * *
    (iv) * * *
    (a) Except as otherwise provided in paragraphs (a)(7)(v) through
(vii) of this section, and consistent with the definition of major
modification contained in paragraph (b)(2) of this section, a project
is a major modification for a regulated NSR pollutant if it causes two
types of emissions increases--a significant emissions increase (as
defined in paragraph (b)(39) of this section), and a significant net
emissions increase (as defined in paragraphs (b)(3) and (b)(23) of this
section). The project is not a major modification if it does not cause
a significant emissions increase. If the project causes a significant
emissions increase, then the project is a major modification only if it
also results in a significant net emissions increase.
* * * * *
    (vii) The plan shall require that for any major stationary source
with a Green Group for a regulated NSR pollutant, the owner or operator
shall comply with the requirements in paragraph (z) of this section for
those emissions activities included within the Green Group.
* * * * *
    (b) * * *
    (2) * * *
    (v) This definition shall not apply to approved physical changes or
changes in the method of operation within a Green Group with respect to
any Green Group pollutant when the major stationary source is complying
with the requirements under paragraph (z) of this section for a Green
Group for that pollutant.
* * * * *
    (21)(i) Actual emissions means the actual rate of emissions of a
regulated NSR pollutant from an emissions unit, as determined in
accordance with paragraphs (b)(21)(ii) through (iv) of this section,
except that this definition shall not apply for calculating whether a
significant emissions increase has occurred, or for establishing a PAL
under paragraph (w) of this section or a Green Group under paragraph
(z) of this section. Instead, paragraphs (b)(40) and (b)(47) of this
section shall apply for those purposes.
* * * * *
    (47) * * *
    (iv) For a PAL or Green Group for a stationary source, the baseline
actual emissions shall be calculated for existing electric utility
steam generating units in accordance with the procedures contained in
paragraph (b)(47)(i) of this section, for other existing emissions
units in accordance with the procedures contained in paragraph
(b)(47)(ii) of this section, and for a new emissions unit in accordance
with the procedures contained in paragraph (b)(47)(iii) of this
section.
* * * * *
    (r) * * *
    (6) Each plan shall provide that the following specific provisions
apply to projects at existing emissions units at a major stationary
source (other than projects at a Green Group 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 (b)(40)(ii)(a) through (c) of this section for
calculating projected actual emissions. Deviations from these
provisions will be approved only if the State specifically demonstrates
that the submitted provisions are more stringent than or at least as
stringent in all respects as the corresponding provisions in paragraphs
(r)(6)(i) through (v) of this section.
* * * * *
    (z) Green Groups. The plan shall provide for Green Groups according
to the provisions in paragraphs (z)(1) through (17) of this section.
    (1) Applicability. The reviewing authority may issue a permit under
regulations approved pursuant to this section designating a Green Group
at any existing major stationary source if the permit contains terms
and conditions assuring that the Green Group meets the requirements in
paragraphs (z)(1) through (17) of this section.
    (i) Changes at a Green Group. Any physical change in or change in
the method of operation authorized for a Green Group pursuant to the
requirements in paragraphs (z)(1) through (17) of this section that
maintains the Green Group's total emissions at or below the Green Group
emissions limit and maintains the Green Group's compliance with its
best available control technology (BACT) limit(s):
    (a) Is not a major modification for the Green Group pollutant;
    (b) Does not have to be approved through the plan's PSD program;
and
    (c) Is not subject to the provisions of paragraph (j)(4) of this
section.
    (ii) Prior requirements. Except as provided under paragraph
(z)(1)(i)(c) of this section, a major stationary source shall continue
to comply with all remaining applicable Federal or State

requirements, emissions limitations, and work practice requirements
that were established prior to the effective date of the Green Group.
    (2) Definitions. The plan shall use the definitions in paragraphs
(z)(2)(i) through (iv) of this section for the purpose of developing
and implementing regulations that authorize the use of Green Groups
consistent with paragraphs (z)(1) through (17) of this section. When a
term is not defined in these paragraphs, it shall have the meaning
given in paragraph (b) or (aa) of this section or in the Act.
    (i) Green Group means a group of new and/or existing emissions
activities that is characterized by use of a common, dedicated air
pollution control device and that has been designated as a Green Group
by the reviewing authority in a permit issued under regulations
approved pursuant to this section. A Green Group is a single emissions
unit for purposes of this section.
    (ii) Green Group pollutant means a pollutant emitted from the
emissions activities that comprise the Green Group and for which a
Green Group is designated at a major stationary source.
    (iii) Green Group permit means the major NSR permit issued by the
reviewing authority that establishes a Green Group for a major
stationary source.
    (iv) Green Group emissions limit means an emissions limitation for
the Green Group pollutant, expressed in tons per year, that is
enforceable as a practical matter and established for a Green Group at
a major stationary source in accordance with paragraphs (z)(1) through
(17) of this section.
    (3) Permit application requirements. The owner or operator of a
major stationary source must request approval for a Green Group in an
application for a major NSR permit that meets the requirements of
paragraphs (j) through (r)(5) of this section, as applicable. As part
of a permit application requesting a Green Group, the owner or operator
of a major stationary source shall submit the following information to
the reviewing authority for approval:
    (i) List of designated emissions activities. A list of the
emissions activities proposed for inclusion in the Green Group. In
addition, the owner or operator of the source shall indicate which, if
any, Federal or State applicable requirements, emissions limitations,
or work practices apply to each activity.
    (ii) Baseline actual emissions. Calculations of the baseline actual
emissions from included emissions activities (with supporting
documentation). Baseline actual emissions are to include emissions
associated not only with operation of the activity, but also emissions
associated with startup, shutdown, and malfunction.
    (iii) Monitoring data conversion procedures. 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 (z)(15)(i) of this section.
    (iv) Description. A description of the equipment that comprises the
Green Group, including a description of existing emissions activities,
proposed physical changes or changes in method of operation (which may
include the addition of new emissions activities), and the common air
pollution control device. The description must provide information
about maximum total emissions that will be generated by the Green
Group's emissions activities and the associated characteristics of the
combined emissions streams (including the worst-case emissions stream)
that will be ducted to the common air pollution control device. The
description must be sufficient:
    (a) To allow the reviewing authority to distinguish changes
proposed to be authorized in the Green Group from unauthorized changes;
and
    (b) To enable the reviewing authority to determine BACT for the
Green Group consistent with paragraphs (z)(4)(ii) and (z)(7)(vi) of
this section.
    (v) Control technology demonstration. A demonstration that the
proposed control technology represents BACT. Such a demonstration shall
confirm that the emissions reduction capacity of the proposed common
control device is sufficient to meet the relevant emissions reduction
requirement, considering the maximum total emissions from the Green
Group and the associated characteristics of the combined emissions
streams that will be ducted to the common air pollution control device.
The BACT demonstration shall be based on worst-case emissions from the
new and existing emissions activities authorized for the Green Group.
    (vi) Monitoring system. A proposed monitoring system sufficient to
meet the requirements of paragraph (z)(13) of this section with respect
to Green Group emissions limit(s) and the requirements of paragraph
(z)(14) of this section with respect to BACT-related limitations.
    (vii) Proposed Green Group emissions limit. The proposed Green
Group emissions limit, in tons per year, with supporting documentation
including, but not limited to, the following:
    (a) Baseline actual emissions of existing emissions activities
proposed to be included in the Green Group, adjusted to reflect the
application of BACT; and
    (b) The amount of emissions growth proposed for the Green Group as
the result of the proposed physical, operational, and other changes.
    (4) General requirements for designating a Green Group. The plan
shall provide that the reviewing authority may designate a Green Group
at an existing major stationary source through issuance of a PSD permit
under regulations approved pursuant to this section, provided that in
addition, at a minimum, the requirements in paragraphs (z)(4)(i)
through (vii) of this section are met.
    (i) Green Group emissions limit. The reviewing authority,
consistent with regulations approved pursuant to paragraph (z)(6) of
this section, shall establish a Green Group emissions limit in tons per
year for those emissions activities included under the Green Group
(including any new emissions activities added within the Green Group).
For each month during the Green Group effective period after the first
12 months of establishing the Green Group, the major stationary source
owner or operator shall show that the sum of the monthly emissions from
each included emissions activity for the previous 12 consecutive months
is less than or equal to the Green Group emissions limit (i.e. a 12-
month total, rolled monthly). For each month during the first 11 months
from the Green Group effective date, the major stationary source owner
or operator shall show that the sum of the preceding monthly emissions
from the Green Group effective date for each emissions activity under
the Green Group is less than or equal to the Green Group emissions
limit.
    (ii) BACT emissions limit. The reviewing authority shall determine
BACT for the emissions of the Green Group pollutant from the group of
emissions activities designated as a Green Group. The BACT emissions
limit shall ensure that the emissions of the emissions activities
included in the Green Group are ducted to a common, dedicated air
pollution control device and ensure compliance with any applicable
emissions limitation under the State Implementation Plan and each
applicable emission standard and standard of performance under 40 CFR
parts 60 and 61. The control device, in combination with any additional
control measures consistent with paragraphs

(z)(4)(ii)(a) and (b) of this section, must achieve the BACT level of
emissions reductions for the Green Group pollutant.
    (a) In addition to the requirement to duct emissions from the Green
Group to a common air pollution control device, additional control
measures such as pollution prevention (as defined under paragraph
(b)(38) of this section), work practices, and/or operational standards
may be defined as part of the approved control measures.
    (b) Pollution prevention measures that have been determined to
represent BACT may be approved to apply during certain periods of
operation. The included emissions activities must have ductwork
extending to the common air pollution control device, but the owner or
operator would be allowed to bypass the control device during periods
when the pollution prevention alternative is in use, consistent with
the BACT determination. Emissions activities that exclusively use the
pollution prevention alternative and never use the common air pollution
control device may not be included in the Green Group.
    (iii) Permit content. The Green Group permit shall contain all the
requirements of paragraph (z)(7) of this section.
    (iv) Included emissions. The Green Group emissions limit shall
include fugitive emissions of the Green Group pollutant, to the extent
quantifiable, from all emissions activities included under the Green
Group.
    (v) Regulated pollutant. Each Green Group shall regulate emissions
of only one pollutant. However, the same collection of emissions
activities may be designated separately as a Green Group for another
pollutant.
    (vi) Effective period. Each Green Group designation shall have an
effective period of 10 years.
    (vii) Monitoring, recordkeeping, and reporting. The Green Group
permit shall require the owner or operator to comply with the
monitoring, recordkeeping, and reporting requirements in paragraphs
(z)(13) through (16) of this section for each included emissions
activity.
    (5) General provisions for Green Groups. The plan shall require
that the provisions set out in paragraphs (z)(5)(i) through (iv) apply
to Green Groups:
    (i) Any project for which the owner or operator begins actual
construction after the effective date of a Green Group designation and
before its expiration date will be considered to have occurred while
the emissions unit was a Green Group.
    (ii) At no time (during or after the Green Group effective period)
are emissions reductions of a Green Group pollutant that occur during
the Green Group effective period creditable as decreases for purposes
of offsets under Sec.  51.165(a)(3)(ii) unless the Green Group
emissions limit is reduced by the amount of such emissions reductions
and such reductions would be creditable in the absence of the Green
Group designation. No emissions reduction credit can be generated for
emissions growth that was authorized under the Green Group permit, but
never realized.
    (iii) At no time (during or after the Green Group effective period)
are emissions increases or reductions of a Green Group pollutant that
occur during the Green Group effective period creditable for purposes
of calculating a net emissions increase under paragraph (b)(3) of this
section (that is, must not be used in a ``netting analysis''), unless
the Green Group emissions limit is reduced by the amount of such
emissions reductions and such reductions would be creditable in the
absence of the Green Group designation. No emissions reduction credit
can be generated for emissions growth that was authorized under the
Green Group permit, but never realized.
    (iv) The Green Group 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 Green Group is located in an attainment
area and the area is redesignated to nonattainment, its Green Group
designation is not affected. Similarly, redesignation from
nonattainment to attainment does not affect the Green Group
designation. However, if an existing Green Group designation expires,
it must re-qualify under the requirements that are currently applicable
in the area.
    (6) Setting the 10-year Green Group emissions limit. The plan shall
provide that the Green Group emissions limit is to be established as
follows:
    (i) Except as provided in paragraphs (z)(6)(ii) through (iv) of
this section, the Green Group emissions limit shall be established as
the sum of the baseline actual emissions (as defined in paragraph
(b)(47) of this section) of the Green Group pollutant for each
emissions activity included in the Green Group. When establishing the
Green Group emissions limit, for a Green Group pollutant, a single
period of 24 consecutive months must be used to determine the baseline
actual emissions for all existing emissions activities. However, a
different period of 24 consecutive months may be used for each
different Green Group pollutant. Emissions associated with activities
that were permanently shut down after this 24-month period must be
subtracted from the Green Group emissions limit. The reviewing
authority shall specify a reduced Green Group emissions limit(s) (in
tons/yr) in the Green Group 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 Green Group permit.
    (ii) For activities (which do not include modifications to existing
units) on which actual construction began after the 24-month period, in
lieu of adding the baseline actual emissions as specified in paragraph
(z)(6)(i) of this section, the emissions must be added to the Green
Group emissions limit in an amount equal to the potential to emit of
the activities.
    (iii) The reviewing authority shall establish the Green Group
emissions level by adjusting the total derived according to paragraphs
(z)(6)(i) and (ii) of this section to reflect:
    (a) The application of BACT; and
    (b) An additional amount of actual emissions consistent with the
growth approved for the Green Group.
    (iv) Notwithstanding the methodology set out above in paragraphs
(z)(6)(i) through (iii) of this section, the reviewing authority shall
reduce the Green Group emissions limit and/or establish short-term
emissions limits as necessary to meet other applicable requirements of
this section, including the requirements of paragraphs (k) and (p).
    (7) Content of the Green Group permit. The plan shall require that
the Green Group permit contain the elements listed in paragraphs
(z)(7)(i) through (xiv) of this section and any other provisions that
the reviewing authority deems necessary to implement the Green Group.
    (i) The Green Group pollutant.
    (ii) A description of the equipment that comprises the Green Group,
including a description of existing emissions activities, any
authorized physical changes or changes in method of operation, and the
common air pollution control device. The description must provide
information about the maximum total emissions that will be generated by
the Green Group's emissions activities and the associated
characteristics of the combined emissions streams that will be ducted
to the common air pollution control device. The description must be
sufficient to distinguish, when a change is subsequently made in the
Green Group, whether that change was authorized under the Green Group
permit.

    (iii) A statement designating the described equipment as a Green
Group.
    (iv) The Green Group emissions limit (in terms of a 12-month total,
rolled monthly) for the group of emissions activities included under
the Green Group.
    (v) Any shorter-term emissions limits that are necessary to
safeguard ambient air quality, as determined according to the
requirements of the regulations approved pursuant to this section.
    (vi) All emissions limitations and work practice requirements
established to ensure that BACT is met.
    (vii) The Green Group effective date and the expiration date of the
Green Group (i.e., the Green Group effective period). If the source
owner or operator must construct a new air pollution control device or
modify an existing device as a result of the BACT determination for the
Green Group, the permit may provide that the existing emissions
activities within the Green Group are not required to meet the BACT
emissions limitation(s) or the Green Group emissions limit until the
new or modified air pollution control device is in operation. (That is,
such emissions activities may continue to meet pre-existing emissions
limitations until that time.) However, new and modified emissions
activities within the Green Group must be subject to BACT upon startup.
In addition, the Green Group must be subject to the Green Group
emissions limit (and associated monitoring, recordkeeping, and
reporting requirements) beginning at the time that the new or modified
air pollution control device is placed in operation.
    (viii) Specification in the Green Group permit that if a major
stationary source owner or operator applies to renew a Green Group in
accordance with paragraph (z)(11) of this section before the end of the
effective period, then the Green Group shall not expire at the end of
the effective period. It shall remain in effect until a new Green Group
permit is issued by the reviewing authority.
    (ix) A requirement that emissions calculations for compliance
purposes must include emissions from startups, shutdowns, and
malfunctions.
    (x) A requirement that, once the Green Group expires, the major
stationary source is subject to the requirements of paragraph (z)(10)
of this section.
    (xi) 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 as required by paragraph (z)(15)(i) of this section.
    (xii) A requirement that the major stationary source owner or
operator meet all applicable requirements for monitoring, testing, and
operation in accordance with the provisions of paragraphs (z)(13) and
(14) of this section.
    (xiii) A requirement to retain the records required under paragraph
(z)(15) of this section on site. Such records may be retained in an
electronic format.
    (xiv) A requirement to submit the reports required under paragraph
(z)(16) of this section by the required deadlines.
    (8) Green Group effective period. The plan shall require that the
reviewing authority specify an effective period of 10 years. The
effective period begins upon the Green Group effective date, which is
the date that the Green Group permit becomes effective.
    (9) Reopening of the Green Group permit. The plan shall provide
that the requirements in paragraphs (z)(9)(i) through (iii) of this
section apply to reopening Green Group permits.
    (i) Mandatory reopenings. During the Green Group effective period,
the reviewing authority must reopen the Green Group permit to:
    (a) Correct typographical/calculation errors made in setting the
Green Group emissions limit or reflect a more accurate determination of
emissions used to establish this limit;
    (b) Reduce the Green Group emissions limit if the owner or operator
of the major stationary source creates creditable emissions reductions
for use as offsets under Sec.  51.165(a)(3)(ii); and
    (c) Reduce the Green Group emissions limit if the owner or operator
of the major stationary source creates creditable emissions reductions
for use in a netting analysis under paragraph (b)(3) of this section.
    (ii) Discretionary reopenings. The reviewing authority shall have
discretion to reopen the Green Group permit for the purposes listed in
paragraphs (z)(9)(ii)(a) through (c) of this section. If the reviewing
authority declines to reopen the Green Group permit for any of these
purposes, the Green Group emissions limit must be adjusted upon
expiration of the Green Group designation or upon renewal of the
source's title V permit, whichever comes first. The major stationary
source owner or operator is responsible for compliance with any new
applicable requirements, regardless of when the permit is reopened and
adjusted.
    (a) To reduce the Green Group emissions limit to reflect newly
applicable Federal requirements (for example, NSPS) with compliance
dates after the Green Group effective date;
    (b) To reduce the emissions limit 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 State
Implementation Plan; and
    (c) To reduce the emissions limit 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.
    (iii) Required process. Except for the permit reopening in
paragraph (z)(9)(i)(a) of this section for the correction of
typographical/calculation errors that do not increase the Green Group
emissions limit, all other reopenings shall be carried out in
accordance with the public participation requirements of paragraph (q)
of this section.
    (10) Expiration of a Green Group. The plan shall require that any
Green Group designation that is not renewed in accordance with the
procedures in paragraph (z)(11) of this section shall expire at the end
of its effective period. After expiration of the Green Group
designation, the following provisions apply:
    (i) The emissions unit defined by the Green Group remains an
emissions unit for purposes of major NSR and remains subject to the
BACT control requirements; Green Group emissions limit; any shorter-
term emissions limits; and monitoring, recordkeeping, reporting, and
testing requirements imposed by the Green Group permit.
    (ii) 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 or prior to the
Green Group effective period.
    (iii) Any subsequent physical change or change in the method of
operation at the emissions unit defined by the Green Group will be
subject to PSD requirements if such change meets the definition of
major modification in paragraph (b)(2) of this section.
    (11) Renewal of a Green Group. The plan shall require that the
following provisions apply to renewal of a Green Group:
    (i) Required procedures. A Green Group may be renewed through
issuance of a new major NSR permit according to all the requirements of
this paragraph (z) for the initial Green Group designation.

    (ii) Application deadline. A major stationary source owner or
operator shall submit a timely application to the reviewing authority
to request renewal of a Green Group. A timely application is one that
is submitted at least 6 months prior to, but not earlier than 18 months
from, the date that the Green Group designation would otherwise expire.
This deadline for application submittal is to ensure that the Green
Group designation will not expire before the Green Group is renewed. If
the owner or operator of a major stationary source submits a complete
application to renew the Green Group within this time period, then the
Green Group shall continue to be effective until the new PSD permit
with the renewed Green Group is issued.
    (12) Increasing a Green Group emissions limit during its effective
period. The plan shall provide that the reviewing authority may
increase a Green Group emissions limit during its effective period only
if the increase is contained in a new permit incorporating the increase
into a new Green Group consistent with the requirements of the
regulations approved pursuant to this section.
    (13) Monitoring requirements for Green Group emissions limitations.
The plan shall provide that the following monitoring requirements apply
to Green Groups.
    (i) General requirements.
    (a) Each Green Group permit must contain enforceable requirements
for the monitoring system that accurately determines, in terms of mass
per unit of time, emissions of the Green Group pollutant from the
emissions activities under the Green Group. Any monitoring system
authorized for use in the Green Group permit must be based on sound
science and meet generally acceptable scientific procedures for data
quality and manipulation. Additionally, the information generated by
such system must meet minimum legal requirements for admissibility in a
judicial proceeding to enforce the Green Group permit.
    (b) The Green Group monitoring system must employ one or more of
the four general monitoring approaches meeting the minimum requirements
set forth in paragraphs (z)(13)(ii)(a) through (d) of this section and
must be approved by the reviewing authority.
    (c) Notwithstanding paragraph (z)(13)(i)(b) of this section, you
may also employ an alternative monitoring approach that meets paragraph
(z)(13)(i)(a) of this section if approved by the reviewing authority.
    (b) Failure to use a monitoring system that meets the requirements
of this section renders the Green Group 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 (z)(13)(iii) through (ix) of this section:
    (a) Mass balance calculations for activities using coatings or
solvents;
    (b) CEMS;
    (c) CPMS or PEMS; and
    (d) Emissions factors.
    (iii) Mass balance calculations. An owner or operator using mass
balance calculations to monitor the Green Group pollutant emissions
from activities using coating or solvents shall meet the following
requirements:
    (a) Provide a demonstrated means of validating the published
content of the Green Group pollutant that is contained in or created by
all materials used in or at the emissions activity;
    (b) Assume that the emissions activity emits all of the Green Group
pollutant that is contained in or created by any raw material or fuel
used in or at the emissions activity, 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 activity, publishes a range of pollutant content from
such material, the owner or operator must use the highest value of the
range to calculate the Green Group 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 Green Group
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 activity is operating.
    (v) CPMS or PEMS. An owner or operator using CPMS or PEMS to
monitor Green Group pollutant emissions shall meet the following
requirements:
    (a) The CPMS or the PEMS must be based on current site-specific
data demonstrating a correlation between the monitored parameter(s) and
the Green Group pollutant emissions across the range of operation of
the emissions activity; 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 activity is operating.
    (vi) Emissions factors. An owner or operator using emissions
factors to monitor Green Group pollutant emissions shall meet the
following requirements:
    (a) All emissions factors shall be adjusted, if appropriate, to
account for the degree of uncertainty or limitations in the factors'
development;
    (b) The emissions activity shall operate within the designated
range of use for the emissions factor, if applicable; and
    (c) If technically practicable, the owner or operator of a
significant or major emissions activity that relies on an emissions
factor to calculate Green Group pollutant emissions shall conduct
validation through performance testing or other scientifically valid
means approved by the reviewing authority to determine a site-specific
emissions factor. Such testing or other means shall occur within 6
months of Green Group permit issuance, unless the reviewing authority
determines that testing is not required.
    (vii) Missing data procedures. A source owner or operator must
record and report maximum potential emissions without considering
enforceable emissions limitations or operational restrictions for an
emissions activity during any period of time that there is no
monitoring data, unless another method for determining emissions during
such periods is specified in the Green Group permit.
    (viii) Alternative requirements. Notwithstanding the requirements
in paragraphs (z)(13)(iii) through (vii) of this section, where an
owner or operator of an emissions activity cannot demonstrate a
correlation between the monitored parameter(s) and the Green Group
pollutant emissions rate at all operating points of the emissions
activity, the reviewing authority shall, at the time of permit
issuance:
    (a) Establish default value(s) for determining compliance with the
Green Group emissions limit based on the highest potential emissions
reasonably estimated at such operating point(s); or
    (b) Determine that operation of the emissions activity during
operating conditions when there is no correlation between monitored
parameter(s) and the Green Group pollutant emissions is a violation of
the Green Group emissions limit.
    (ix) Re-validation. All data used to establish the Green Group
pollutant

emissions 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
Green Group.
    (14) Additional monitoring requirements for BACT. The plan shall
provide that the permit must also require the owner or operator with a
Green Group to monitor, measure, and record data sufficient to
determine whether:
    (i) The emissions reduction measures (including the Green Group air
pollution control device) meet the emissions limitations and/or work
practice requirements adopted in conjunction with BACT; and
    (ii) The demonstrated capacity of the Green Group air pollution
control device was exceeded by the emissions stream(s) directed to it
at any time during the reporting period. The capacity of the control
device is considered exceeded if the characteristics of the emissions
stream entering the device are outside the range for which it has been
demonstrated that the device can achieve BACT, absent valid monitoring
data (from a continuous monitoring system or other monitoring approach
approved for such use by the reviewing authority) showing compliance
with BACT at the new operating level. A period of exceedance is
considered a deviation for purposes of recordkeeping and reporting.
    (15) Recordkeeping requirements. The plan shall require that the
following recordkeeping requirements apply to Green Groups:
    (i) Records to determine compliance. The Green Group permit shall
require an owner or operator to retain a copy of all records necessary
to determine compliance with any requirement of paragraph (z) of this
section and of the Green Group permit, including a determination of
each emissions activity's 12-month rolling total emissions, for 5 years
from the date of such record.
    (ii) Other records. The Green Group permit shall require an owner
or operator to retain a copy of the following records for the duration
of the Green Group effective period plus 5 years:
    (a) A copy of the Green Group permit application and any
applications for revisions to the Green Group permit; and
    (b) Each annual certification of compliance pursuant to title V and
the data relied on in certifying the compliance.
    (16) Reporting and notification requirements. The plan shall
require the owner or operator to 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 (z)(16)(i) through (iii) of this
section.
    (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 (z)(16)(i)(a) through (g) of this section.
    (a) The identification of owner and operator and the permit number.
    (b) Total annual emissions (tons per year) from the emissions
activities included under the Green Group, based on a 12-month rolling
total for each month in the reporting period recorded pursuant to
paragraph (z)(15)(i) of this section.
    (c) All data relied upon, including, but not limited to, any
Quality Assurance or Quality Control data, in calculating the monthly
and annual Green Group pollutant emissions.
    (d) A list of any emissions activities included under the Green
Group that were added 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 activity monitored by the monitoring system continued to
operate, and the calculation of the emissions of the pollutant or the
number determined by the method included in the permit, as provided by
paragraph (z)(13)(vii) of this section.
    (g) A signed statement by the responsible official (as defined by
the applicable title V operating permit program) certifying the truth,
accuracy, and completeness of the information provided in the report.
    (ii) Deviation report. The major stationary source owner or
operator shall promptly submit reports of any deviations or exceedance
of the Green Group emissions limit or emissions reduction requirement
(e.g., BACT limit), including periods where no monitoring is available.
A report submitted pursuant to Sec.  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 Sec.  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 Green Group 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.
    (17) Transition requirements. The plan shall provide that the
reviewing authority may not issue a Green Group permit that does not
comply with the requirements in paragraphs (z)(1) through (17) of this
section or their equivalent after the Administrator has approved
regulations incorporating these requirements into the plan. The plan
shall provide that the reviewing authority may supersede any Green
Group permit that was established prior to the date of approval of the
plan by the Administrator with a Green Group permit that complies with
the requirements of paragraphs (z)(1) through (17) of this section.

PART 52--[AMENDED]

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

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

Subpart A--[Amended]

    5. Section 52.21 is amended as follows:
    a. By revising paragraph (a)(2)(iv)(a);
    b. By adding paragraph (a)(2)(vii);
    c. By adding paragraph (b)(2)(v);
    d. By revising paragraph (b)(21)(i);
    e. By revising paragraph (b)(48)(iv);
    f. By revising paragraph (r)(6) introductory text; and
    g. By adding paragraph (dd).
    The additions and revisions read as follows:

Sec.  52.21  Prevention of significant deterioration of air quality.

    (a) * * *
    (2) * * *

    (iv) * * *
    (a) Except as otherwise provided in paragraphs (a)(2)(v) through
(vii) of this section, and consistent with the definition of major
modification contained in paragraph (b)(2) of this section, a project
is a major modification for a regulated NSR pollutant if it causes two
types of emissions increases--a significant emissions increase (as
defined in paragraph (b)(40) of this section), and a significant net
emissions increase (as defined in paragraphs (b)(3) and (b)(23) of this
section). The project is not a major modification if it does not cause
a significant emissions increase. If the project causes a significant
emissions increase, then the project is a major modification only if it
also results in a significant net emissions increase.
* * * * *
    (vii) For any major stationary source with a Green Group for a
regulated NSR pollutant, the owner or operator shall comply with the
requirements in paragraph (dd) of this section for those emissions
activities included within the Green Group.
* * * * *
    (b) * * *
    (2) * * *
    (v) This definition shall not apply to approved physical changes or
changes in the method of operation within a Green Group with respect to
any Green Group pollutant when the major stationary source is complying
with the requirements under paragraph (dd) of this section for a Green
Group for that pollutant.
* * * * *
    (21)(i) Actual emissions means the actual rate of emissions of a
regulated NSR pollutant from an emissions unit, as determined in
accordance with paragraphs (b)(21)(ii) through (iv) of this section,
except that this definition shall not apply for calculating whether a
significant emissions increase has occurred, or for establishing a PAL
under paragraph (aa) of this section or a Green Group under paragraph
(dd) of this section. Instead, paragraphs (b)(41) and (b)(48) of this
section shall apply for those purposes.
* * * * *
    (48) * * *
    (iv) For a PAL or Green Group for a stationary source, the baseline
actual emissions shall be calculated for existing electric utility
steam generating units in accordance with the procedures contained in
paragraph (b)(48)(i) of this section, for other existing emissions
units in accordance with the procedures contained in paragraph
(b)(48)(ii) of this section, and for a new emissions unit in accordance
with the procedures contained in paragraph (b)(48)(iii) of this
section.
* * * * *
    (r) * * *
    (6) The provisions of this paragraph (r)(6) apply to projects at an
existing emissions unit at a major stationary source (other than
projects at a Green Group 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 (b)(41)(ii)(a) through (c) of this section for
calculating projected actual emissions.
* * * * *
    (dd) Green Groups. The provisions in paragraphs (dd)(1) through
(17) of this section govern Green Groups.
    (1) Applicability. The Administrator may issue a permit pursuant to
this section designating a Green Group at any existing major stationary
source if the permit contains terms and conditions assuring that the
Green Group meets the requirements in paragraphs (dd)(1) through (17)
of this section.
    (i) Changes at a Green Group. Any physical change in or change in
the method of operation authorized for a Green Group pursuant to the
requirements in paragraphs (dd)(1) through (17) of this section that
maintains the Green Group's total emissions at or below the Green Group
emissions limit and maintains the Green Group's compliance with its
best available control technology (BACT) limit(s):
    (a) Is not a major modification for the Green Group pollutant;
    (b) Does not have to be approved through the PSD program; and
    (c) Is not subject to the provisions of paragraphs (j)(4) and
(r)(2) of this section.
    (ii) Prior requirements. Except as provided under paragraph
(dd)(1)(i)(c) of this section, a major stationary source shall continue
to comply with all remaining applicable Federal or State requirements,
emissions limitations, and work practice requirements that were
established prior to the effective date of the Green Group.
    (2) Definitions. For the purposes of this paragraph (dd), the
definitions in paragraphs (dd)(2)(i) through (iv) of this section
apply. When a term is not defined in these paragraphs, it shall have
the meaning given in paragraph (b) or (aa) of this section or in the
Act.
    (i) Green Group means a group of new and/or existing emissions
activities that is characterized by use of a common, dedicated air
pollution control device and that has been designated as a Green Group
by the Administrator in a permit issued pursuant to this section. A
Green Group is a single emissions unit for purposes of this section.
    (ii) Green Group pollutant means a pollutant emitted from the
emissions activities that comprise the Green Group and for which a
Green Group is designated at a major stationary source.
    (iii) Green Group permit means the major NSR permit issued by the
Administrator that establishes a Green Group for a major stationary
source.
    (iv) Green Group emissions limit means an emissions limitation for
the Green Group pollutant, expressed in tons per year, that is
enforceable as a practical matter and established for a Green Group at
a major stationary source in accordance with paragraphs (dd)(1) through
(17) of this section.
    (3) Permit application requirements. The owner or operator of a
major stationary source must request approval for a Green Group in an
application for a major NSR permit that meets the requirements of