p.1 

OAR Box 1778 

Prepped by Ollie Stewart 

Document Number: 

209) ll-J-2 

Docket Number: 

A-90-06 

Printed 10/28/2008 9:51:01 AM Sheet 209 of 276 
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TUESDAT, DECEMBER 16, 1975 

PART IV: 

p • .111X 1 

j.'jj JUN | 2 1991 j|J! 

7

::AAIRD0CX_.f 

ENVIRONMENTAL 

PROTECTION 

AGENCY 

STANDARDS OF 

PERFORMANCE FOR NEW 

STATIONARY SOURCES 

Modification, Notification am) 

Reco-astructiom 
P.3 

38416 

Title 40—Protection of Environment 

CHAPTER I—ENVIRONMENTAL 

PROTECTION AGENCY 

SUBCHAPTER C—AIR PROGRAMS 

[ FRL 402-81 

PART 60—STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES 

Modification, Notification, and 

Reconstruction 

On October 15. 1974 (39 FR 36946), 

under section 111 of the Clean Air Act, as 

amended (42 U.S.C. 1857). the Environmental Protection Agency (EPA) proposed amendments to the general provisions of 40 CFR Part 60. These amendments included additions and revisions 

to clarify the definition of the term 

"modification" appearing in the Act, to 

require notification of construction or 

potential modification, and to clarify 

when standards of performance are applicable to reconstructed sources. These 

regulations apply to all stationary 

sources constructed or modified after the 

proposal date of an applicable standard 

of performance. 

Interested parties participated in the 

rulemaking by sending comments to EPA. 

Fifty-three comment letters were received. 43 of which came from industry, 

with the remainder coming from State 

and Federal agencies. Copies of the comment letters received and a summary of 

the comments with EPA's responses are 

available for public inspection and copying at the EPA Public Information Reference Unit Room 2922 (EPA Library), 

401 M Street SW., Washington, D.C. In 

addition, copies of the comment summary 

and Agency responses may be obtained 

upon written request from the EPA Public Information Center (PM-215). 401 M 

Street SW.. Washington, D.C. 20460 (specify Public Comment Summary—Modification. Notification, and Reconstruction). The comments have been carefully considered, and where determined 

'-." the Administrator to be appropriate, 

-*_nges have been made to the proposed 

-ilatlons and are Incorporated In the 

i _7i_lations promulgated herein. The 

most significant comments and the differences between the proposed and promulgated regulations i *. discussed below. 

TERMINOLOGY 

Understandably there has been some 

confusion as to the difference between 

the various types of "sources" and "facilities" defined in f 60.2 of theee regulations. Generally speaking, "sources" are 

entire plants, while "facilities'' are Identifiable pieces of process equipment or 

individual components which when taken 

together would comprise a souroe. "Affected facilities" are facilities subject to 

standards of performance, and are specifically identified in the first section of 

each subpart of Part 60; An "existing 

facility" is generally a piece of equipment 

or component of the same type as an 

affected facility, but which differs in that 

it was constructed prior to the date of 

proposal of an applicable standard of 

performance. This distinction Is somewhat complicated because an existing 

RULES AND REGULATIONS 

facility which undergoes a modification 

within the meaning of the Act and these 

regulations becomes an affected facility. 

However, generally speaking, the distinction between "affected facilities" and 

"existing facilities" depends on the date 

of construction. The terms are intended 

to be the direct regulatory counterparts 

of the statutory definitions of "new 

source" and "existing source" appearing 

in section 111 of the Act. 

"Designated facilities" form a subcategory of "existing facilities." A "designated facility" is an existing facility 

which emits a "designated pollutant," 

i.e.. a pollutant which is neither a hazardous pollutant, as defined by section 

112 of the Act, nor a pollutant subject to 

national ambient air quality standards. 

The term "designated facilities." however, has no special relevance to the issue 

of modification. 

DEFINITION OF "CAPITAL EXPENDITURE" 

Several commentators argued that the 

proposed definition of "capital expenditure," as applicable to the exemption for 

increasing the production rate of an existing facility in § 60.14(e) (2), was too 

vague. The regulations promulgated 

herein correct this deficiency by incorporating by reference and by requiring the 

application of the procedure contained 

in Internal Revenue Service Publication 

534, which is available from any IRS office. The procedure set forth in IRS Publication 534 is relatively straightforward. First, the total cost of increasing 

the production or operating rate must be 

determined. All expenditures necessary to 

increasing the facility's operating rate 

must be included in this total. However, 

for purposes of § 60.14(e) (2) this amount 

must not be reduced by any "excluded 

additions," as defined in IRS Publication 

534, as would be done for tax purposes. 

Next, the facility's basis (usually its 

cost), as defined by Section 1012 of the 

Internal Revenue Code, must be determined. If the product of the appropriate 

"annual asset guideline repair allowance 

percentage" tabulated in Publication 534 

and the facility's basis exceeds the cost 

of Increasing the operating rate, the 

change will not be treated as a modification. Conversely, if the cost of malting 

the change is more than the above product and the emissions have increased, the 

change will be treated as a modification. 

The advantage of adopting the procedure in IRS Publication 534 is that firm 

and precise guidance is provided as to 

what constitutes a capital expenditure. 

The procedure involves concepts and information which are available to all owners and operators and with which they 

are familiar, and it is the Administrator's 

opinion that It adequately responds to 

the complaints of vagueness made in 

comments. 

NOTIFICATION OF CONSTRUCTION 

The regulations promulgated ' herein 

contain a requirement that owners or operators notify EPA within 30 days of 

the commencement of construction of 

an affected facility. Some commentators, 

however, questioned the Agency's legal 

•f 

authority to require sveh a notification 

and questioned the neefd for such information. 

Section 301(a) of the| Act provides the 

Administrator authority to issue regulations "n3cessary to cafry out his functions under [the! Act.' 

learned through experience with administering the new source performance 

standards that knowledge of the sources 

which may become sub. ect to the standards is important to the effective implementation of section 111. This notification will, not be used for approval or 

disapproval of the planned construction: 

the purpose is to allow the Administrator 

to locate sources which will be subject to 

the regulations appearing in this part, 

and to enable the Administrator to inform the sources about applicable regulations in an effort to minimize future 

problems. In the case of mass produced 

facilities, which are purchased by the 

ultimate user when construction is completed, the construction notification requirement will not apply. Notification 

prior to startup, however will still be 

required. 

USE OF EMISSION FACTORS 

The proposed regulations listed emission factors as one possible method to 

be used In determining whether a facility 

has increased its emissions. Emission 

factors have two major advantages. 

First, they are-inexpensive to use. Second, 

they may be applied prospectively. I.e., 

they can be used in some cases to determine whether a particular change will Increase a facility's emissions before the 

change is implemented. This is important 

to owners or operators since they can 

thereby obtain advance notice of the 

consequences of proposed changes they 

are planning prior to commitment to a 

particular course of action. Emission factors do not, however, provide results as 

precise as other methods, such as actual 

stack testing. Nevertheless, in many 

cases the emission consequences of a proposed change can be reliably predicted 

by the use of emission factors. In such 

cases, where emissions will clearly increase or will clearly not increase, the 

Agency will rely primarily on emission 

factors. Only where the resulting change 

in emission rate is ambiguous, or where 

a dispute arises as to the result obtained by the use of emission factors, will 

other methods be used. Section 60.14(b) 

has been revised to reflect this policy. 

THE "BUBBLE CONCEPT" 

The phrase "bubble concept" has been 

used to refer to the trading off of emission increases from one facility undergoing a physical or operational change 

with emission reductions from another 

facility, in order to achieve no net increase in the amount of any air pollutant (to which a standard applies) emitted Into the atmosphere by the stationary 

source taken as a whole. 

Sewerml commentators suggested that 

th*-"bubb_e concept" be extended to cover 

"new construction." Under the proposed 

regulations, the "bubble | concept" could 

be utilized to offset emission Increases 

FEOCIAl REGISTER, VOL 40, NO. 242—TUESDAY, DECEMBER 16, 1975 
P.4 

RULES AMD REGULATIONS 58417 

from a facility undergoing a physical or 

operational change (as distinguished 

from a "new facility") at a lower economic cost than would arise if the facility undergoing the change were to be 

considered by EPA as being modified 

within the meaning of section 111 of the 

Act and consequently required to meet 

standards of performance. Under the 

suggested approach a new facility could 

be added to an existing source without 

having to meet otherwise applicable 

standards of performance, provided the 

amount of any air pollutant (to which a 

standard applies) emitted into the 

atmosphere by the stationary source 

taken as a whole did not increase. If 

adopted, this suggestion could exempt 

most new construction at existing sources 

from having to cpmply with otherwise 

applicable standards of performance. 

Such an interpretation of the section 111 

provisions of the Act would grant a significant and unfair economic advantage 

to owners or operators of existing sources 

replacing facilities with new construction as compared to someone wishing to 

construct an entirely new source. 

If the bubble concept were extended to 

cover new construction, large sources of 

air pollution could avoid the application 

of new source performance standards indefinitely. Such sources cou'.d contlnua'ly replace obsolete or worn out facilities with new facilities of the same type. 

If the same emission controls were 

adopted, no overall emission increase 

would result. In this manner, the source 

could continue indefinitely without ever 

being required to upgrade air pollution 

control systems to meet standards of performance for new facilities. The Administrator interprets section 111 to require 

that new producers of emissions be subject to the standards whether constructed at a new plant site or an existing one. Therefore, where a new facility 

is constructed, new source performance 

standards most be met. In situations Involving physical or operational changes 

to an existing facility which Increase 

emissions from that facility, greater 

flexlbilty is permitted to avoid the imposition of large control costs If the projected Increase can be offset by controlling other plant fae___t_es. 

Several commentators argued that If 

the Administrator adopted the proposed 

interpretation of the-term "modification", which would eo_nW1u a modtBeation to have occurred e*en if there was 

only a relatively ___ta_r detectable emission rate increase (ttras*m*-*-dri__g application of standards of performance), the 

Administrator would In effect prevent 

owners or operators from implementing 

physical or operational changes necessary to switch freon gas and oil to coal in 

comport with the President's policy of 

reducing gas and oil consumption. The 

Administrator has concluded that tf such 

situations exist, ther will be relatively 

rare and, in any event, will be peculiar 

to the group of faculties covered by a 

particular standard of performance 

rather than to all facilities In general. 

Therefore, the Administzatar has further 

concluded that it would be more appropriate to consider such circumstances 

and possible avenues of relief In connection with the promulgation of or amendment to particular standards of performance rather than through the amendment of the general provisions of 40 

CFR Part 60. 

Where the use of the bubble concept 

is elected by an owner or operator, some 

guarantee is necessary to insure that 

emissions do not subsequently increase 

above the level present before the physical or operational change in question. 

For example, reducing a facility's operating rate is a permissible means of offsetting emission increases from another 

facility undergoing a physical or operational change. If the exemption provided 

by i 60.14(e) (2) as promulgated herein 

were subsequently used to increase the 

first facility's operating rate back to the 

prior level, the intent of the Act would 

be circumvented and the compliance 

measures previously adopted would be 

nullified. Therefore, in those cases where 

utilization of the exemptions under 

§ 60.14(e) (2), (3), or (4) as promulgated 

herein would effectively negate, the compliance measures originally adopted, use 

of those exemptions will not be permitted. 

One limitation placed on utilisation of 

the "bubble concept" by the proposed 

regulation was that emission reductions 

could be credited only if achieved at an 

"existing" «r "affected" facility. The purpose of this requirement was to Umit the 

"bubble concept" to those facilities which 

could be source tested by EPA reference 

methods. One commentator pointed out 

that some facilities other than "existing" 

or "affected" faculties (Le„ facilities of 

the type for which no standards have 

been promulgated) lend themselves to 

accurate emission measurement. Therefore, i 60.14(d) has been revised to permit emission reductions to be credited 

from all facilities whose emissions can 

be measured by reference, equivalent, or 

alternative methods, as defined in 3 60.2 

(s), (t), and (u). In addition, when a 

facility which cannot be tested by any 

of these methods Is permanently closed, 

the regulations have been revised to permit emission rate reductions from such, 

closures to be used to offset emission rate 

increases if methods such as emission 

factors clearly show, to the Administrator's satisfaction that the reduction offsets any increase. 13-6'regulation does 

not allow facilities which-cannot be tested 

by any of these methods to reduce their 

production as a means of reducing emissions to offset emission rate increases because establishing allowable emissions for 

such facilities and monitoring compliance to insure that the allowable emissions are not exceeded would be very 

difficult and even impossible in many 

cases. 

Also, under the proposed regulations 

applicable to the "bubble concept." actual emission testing was the only permissible method for demonstrating that 

there has been no Increase in the-lntal 

emission rate of any pollutant to which 

a standard applies from all facilities 

within the stationary sonxne. Several 

commentators correctly argued -that If 

methods such as emission factoaa are 

sufficiently accurate to determine emission rates under other sections of the 

regulation [Le. § 60.14(b)], they should 

be adequate for the purposes of utilization of the bubble concept. Thus, the 

regulations have been revised to permit 

the use of emission factors in those cases 

where it can be demonstrated to the Administrator's satisfaction that they will 

clearly show that total emissions, will 

or will not increase. Where the Administrator is not convinced of the reliability 

of emission factors in a particular case, 

other methods will be required. 

OWNERSHIP CHANCE 

The regulation has been amended by 

adding 5 60.14(e) (6) which states that a 

change in ownership or relocating a 

source does not by itself bring a source 

under these modification regulations. 

RECONSTRUCTION 

Several commentators questioned the 

Agency's legal authority to propose 

standards of performance on reconstructed sources. Many commentators 

further believed that the Agency is attempting to delete the emission increase 

requirement from the >*4»t**ni_ir__. of modification. The Agency's actual intent is to 

prevent circumvention of the law. Section 111 of the Act requires compliance 

with standards of perfon____aoe in two 

cases.- new construction anil modification. The reconstruction provision is intended to apply where an filiating facility's components ace replaced to such an 

extent that. It is technoloe-lcaBy and 

economically feasible for the reconstructed facility to comply with the applicable standards of performance. In 

the case of an entirely near facility, the 

proper time to apply the best adeq>___tely 

demonstrated control technology Is when 

the facility is originally eonstaicted. As 

explained in the preamble to the proposed regulation, the purpose of the reconstruction provision is to recognize 

that renlaoement of many of the components of a facility can be aiinst— flail? 

equivalent to totally replacing it at -the 

end of-tts useful ttfe with a newlv constructed affected f___iUt». For existing 

facilities which rabatanriaBy retain U_elr 

character as existing faciUhca. application ef best- _K_t-?____e_r demonstrated 

control teo____alotr is considered a«propciate when any nh-ostoal or opeBattenal 

ettaage is aaade which causae an ineoanse 

In emissions to the atmosohere (this is 

modification). Thus, the criteria*for "reconstruction** are Independent from the 

crtten&ror .modf-lsetton. 

Occttona 69.14 and W.tVset uptheprocedoae and criteria tote waed In mating 

Bjuataly-(le__M__iir_tfe-l4__-_-M-> tTi'timiiirvy 

ta *******? facilities to u__J___i some 

-•VH-Tlgff *___!__, ____«_ HH,f)flf 

Under the proposed regulaMoiia. the 

replacement of a _T_b_*t-__"t_al portion- of 

an exxstBg tttcSKi^B c0HpssM_-tB"ven~ 

stltuted reeonstntetton. Many cnantntatos questioned the n—ing ef ""subAfter considering the 

and the vaaomeaa of tbls 

the Ase____y decided to revise the 

proposed recu_isU urilnp p_*o*d______e_. to 

FEDERAL ICOISTGR, VOL .40, NO. 241—TUESMY,* 1ft, 1*75 
P.5 

58418 

better clarify to owners or operators what 

actions they must take and what action 

the Administrator will take. Section 60.15 

of the regulations as revised specifies 

that reconstruction occurs upon replacement of components if the fixed capital 

cost of the new components exceeds 50 

percent of the fixed capital cost that 

would be required to construct a comr 

parable entirely new facility and it is 

technologically and economically feasible for the facility after the replacements to comply with the applicable 

standards of performance. The 50 percent replacement criteria is designed 

merely to key the notification to the 

Administrator: it Is not an independent 

basis for the Administrator's determination. The term "fixed capital cost" is defined as the capital needed to provide all 

the - depreciable components and Is intended to include such things as the costs • 

of engineering, purchase, and installation of major process equipment, contractors' fees, instrumentation, auxiliary 

facilities, buildings, and structures. Costs 

associated with the purchase and inst .'-

latlon of air pollution control equiprr. n 

(e.g., baghouses, electrostatic precipitators, scrubbers, etc.) are not considered 

In estimating the fixed capital cost of a 

comparable entirely new facility unless 

that control equipment is required as 

rt of the process (e.g., product re-

-y). 

a revised 8 60.15 leaves the final deunatlon with the Administrator as 

to when it is technologically and economically feasible to comply with the 

applicable standards of performance, 

•"•urther clarification and definition is 

not possible because the spectrum of replacement projects that will take place 

in the future at existing facilities is so 

broad that it is not possible to be any 

more specific. Section 60.15 sets forth 

the criteria which the Administrator will 

use in making his determination. For 

example, if the estimated - life of the 

-'"'ty after the replacements Is aig-

'ntly less than the estimated life 

ew facility, the replacement may 

considered reconstruction. If the 

tH,__,,.nent being replaced does not emit 

or cause an emission of an air pollutant, 

it may be determined that controlling; 

the components that do emit air pollutants ts not reasonable constdertng' 

cost, and standards of performance for 

new sources should not be^applied. If 

there Is Insufficient space after the replacements at an e____t___g>facHity to install the necessary air poflnt_on control 

system to comply with tht standards of 

performance, then reconstruction would. 

not be determined to haw occurred. 

Finally, the Administrator win consider 

all technical and economic limitations 

the facility may have in complylng.wlth 

the applicable standards of performance 

after the proposed replacementsWhile S 60.16 expresses the basic 

Agency policy and Interpretation regarding reconstruction. Individual subparts 

may refine and delimit the concept as 

applied to individual categories of 

facilities. 

RULES ANO REGULATIONS 

RESPONSE TO REQUESTS FOR 

DETERMINATION 

Section 60.5 has been revised to indicate that the Administrator will make 

a determination of whether an action 

by an owner or operator constitutes reconstruction within the meaning of 

8 60.15. Also, in response to a public comment, a new s 60.5(b) has been added to 

indicate the Administrator's intention to 

respond to requests for determinations 

within 30 days of receipt of the request. 

STATISTICAL TEST 

Appendix C of the regulation incorporates a statistical procedure for determining whether an emission increase has 

occurred. Several individuals commented 

on the procedure as proposed. After considering all these comments and conducting further study into the subject, 

the Administrator has determined that 

a statistical procedure is substantially 

superior to a method comparing average 

emissions, and that no other statistical 

procedure is clearly superior to the one 

adopted (Student's t test). A more detailed analysis of this issue can be found 

in EPA's responses to the comments 

mentioned previously. 

Effective date. These regulations are 

effective on December 16, 1975. Since 

they represent a clarification of the 

Agency's existing enforcement policy, 

good cause is found for not delaying the 

effective date, as required by 5 U.S.C: 

553(d) (3). However, the regulations will, 

in effect, apply retroactively to any enforcement activity now in progress since 

they do reflect present Agency policy. 

(Sections 111. 114. and 301 of the Clean Air 

Act. as amended (43 U.S.C. 1857c-6. 18S7c-9. 

and 18S7g)) 

Dated: December 8,1975. 

RUSSELL E. TRAIN, 

Administrator. 

Part 60 of Chapter I. Title 40 of the 

Code of Federal Regulations is amended 

as follows: 

1. The table of sections Is amended by 

adding SS 60.14 and 60.15 and Appendix 

C as follows: 

Subpart A General Provtatona 

00.14 

60-tft 

Modification. 

Reconstruction. 

of 

<h) "Modification" means any physical change in, or change in the method 

of operation of. an existing facility which 

increases the amount of any air pollutant 

(to which a standard applies) emitted 

into the atmosphere by that facility or 

which results in the emission of any air 

pollutant (to which a standard applies) 

into the atmosphere not previously 

emitted. 

Appendix C—Determination 

Bate Change. 

2. In i 60.2. paragraphs (d> and (h) 

are revised and paragraphs (aa) and 

(bb) are added as follows: 

§ 60-2 Definitions. 

» • • • * 

(d) "Stationary source" means any 

building, structure, facility, or Installation which emits or may emit any air 

pollutant and which contains any one or 

combination of the following: 

(1) Affected facilities. 

(2) Existing facilities. 

(3) Facilities of the type; for which no 

standards have been promulgated m this 

part. 

(aa) "Existing facility" means, with 

reference to a stationary source, any apparatus of the type for which a standard 

is promulgated in this part, and the construction or modiflc: 

commenced before the date of proposal 

of that standard: or any apparatus 

which could be altered in such a way as 

to be of that type. 

(bb) "Capital expenditure" means an 

expenditure for a physical or operational 

change to an existing facility which ex 

ceeds the product of 

nual asset guideline repair allowance 

percentage" specified in the latest edition of Internal Revenue Service Publication 534 and the 

basis, as defined by 

Internal Revenue Code 

tion of which was 

the applicable "anexistlng facility's 

section 1012 of the 

3 revised to read as . Section 60.5 is 

follows: 

§ 60.5 Determination of construction or 

modification. 

(a) When requested to do so by an 

owner or operator, J the Administrator 

will make a determination of whether 

action taken or intended to be taken by 

such owner or operator constitutes construction (including reconstruction) or 

modification or the commencement 

thereof within the meaning of this part. 

(b) The Administrator will respond to 

any request for a determination under 

paragraph (a) of this section within 30 

days of receipt of such request. 

4. In S 60.7, paragraphs (a)(1) and 

and paragraphs 

(e) are added as 

(a) (2) are revised, 

(a) (a)(4), and 

follow,: 

§ 60.7 "Notification and recordkeeping, 

operator subject to 

part shall furnish 

written notification 

(a) Any owner or 

the provisions of this 

t he Administrator 

as follows: 

(1) A notification ol 

tion (or reconstructio a 

S 60.15. of an affected 

menced postmarked 

days .after such date, 

shkll not apply In the 

duced facilities which 

completed form. 

(2) A notification 

date of initial startup 

facility postmarked 

days nor less than 30 

date. 

(3- A notification of tiie actual date 

of lnitifl startup trf an affected facility 

postmarked within 15 days after such 

"Bate. 

(4) A notification of any physical or 

operational change to 

Ity which may Increase the emission rate 

of any air pollutant to which a standard applies, unless that change is spethe date construeas defined under 

facility Is cornno later than 30 

This requirement 

case of mass-proare purchased in 

jf the anticipated 

of an affected 

hot more than 60 

days prior to such 

HoatAi tfoism, voc *o, NO. Ma—TUESDAY, DECIMIM 16, .97$ 
P.6 

RULES AND REGULATIONS 58419 

cifically exempted under an applicable 

subpart or in § 60.14(e) and the exemption Is not denied under S 60.14(d)(4). 

This notice shall be postmarked 60 days 

or as soon as practicable before the 

change is commenced and shall include 

information describing the precise nature of the change, present and proposed 

emission control systems, productive 

capacity of the facility before and after 

the change, and the expected completion date of the change. The Administrator may request additional relevant information subsequent to this notice. 

• • • • • 

(e) If notification substantially similar 

to that in paragraph (a) of this section 

is required by any other State or local 

agency, sending the Administrator a 

copy of that notification will satisfy the 

requirements of paragraph (a) of this 

section. 

5. Subpart A is amended by adding 

§§ 60.14 and 60.15 as follows: 

§ 60.14 Modification. 

(a) Except as provided under paragraphs (d), (e) and (f) of this section, 

any physical or operational change to 

an existing facility which results in an 

Increase in the emission rate to the 

atmosphere of any pollutant to which a 

standard applies shall be considered a 

modification within the meaning of section 111 of the Act. Upon modification, 

an existing facility shall become an affected facility for each pollutant to 

which a standard applies and for which 

there is an increase in the emission rate 

to the atmosphere. 

(to) Emission rate shall be expressed as 

kg/hr of any pollutant discharged into 

the atmosphere for which a standard is 

applicable. The Administrator shall use 

the following to determine emission rate: 

(1) Emission factors as specified in 

the latest issue of "Compilation of Air 

Pollutant Emission Factors," EPA Publication No. AP-42. or other emission 

factors determined by the Administrator 

to be superior to AP-42 emission factors, 

in cases where utilization of emission 

factors demonstrate that the emission 

level resulting from the physical or operational change will either-clearly increase or clearly not increase. 

(2) Material balances, continuous 

monitor data, or matiual emission tests 

in cases where utilization of emission 

factors as referenced in paragraph (b) 

(1) of this section does not demonstrate 

to the Administrator's- satisfaction 

whether the emission level resulting from 

the physical or operational change will 

either clearly increase or clearly not increase, or where an owner or operator 

demonstrates to the Administrator's 

satisfaction that there are reasonable 

grounds to dispute the result obtained by 

the Administrator utilizing emission factors as referenced in paragraph (b) (1) 

of this section. When the emission rate 

Is based on results from manual emission 

tests or continuous monitoring systems, 

the procedures specified in Appendix C 

of this part shall be used to determine 

whether an Increase in emission rate has 

occurred. Tests shall be conducted under 

such conditions as the Administrator 

shall specify to the owner or operator 

based on representative performance of 

the facility. At least three valid test 

runs must be conducted before and at 

least three after the physical or operational change. All operating parameters 

which may affect emissions must be held 

constant td the maximum feasible degree 

for all test runs. 

(c) The addition of an affected facility 

to a stationary source as an expansion 

to that source or as a replacement for 

an existing facility shall not by itself 

bring within the applicability of this 

part any other facility within that 

source. 

(d) A modification shall not be deemed 

to occur if an existing facility undergoes 

a physical or operational change where 

the owner or operator demonstrates to 

the Administrator's satisfaction (by any 

of the procedures prescribed under paragraph (b) of this section) that the total 

emission rate of any pollutant has not 

increased from all facilities within the 

stationary source to which appropriate 

reference, equivalent, or alternative 

methods: as defined in § 60.2 (s), (t) and 

(u), can be applied. An owner or operator 

may completely and permanently close 

any facility within a stationary source 

to prevent an increase in the total emission rate regardless of whether such 

reference, equivalent or alternative 

method can be applied, if the decrease 

in emission rate from such closure can 

be adequately determined by any of the 

procedures prescribed under paragraph 

(b) of this section. The owner or operator of the source shall have the burden 

of demonstrating compliance with this 

section. 

(1) Such demonstration shall be in 

writing and shall Include: (1) The name 

and address of the owner or operator. 

(il) The location of the stationary 

source. 

(ill) A complete description of the existing facility undergoing the physical 

or operational change resulting In an Increase in emission rate, any applicable 

control system, and the physical or operational change to such facility. 

(iv) The emission rates Into the atmosphere from the existing facility of 

each pollutant to which a standard applies determined before and after the 

physical or operational change takes 

place, to the extent such information Is 

known or can be predicted. 

(v) A complete description of each 

facility and the control systems, if any, 

for those facilities within the stationary 

source where the emission rate of each 

pollutant in question will be. decreased 

to compensate for the Increase in emission rate from the existing facility undergoing the physical or operational 

change. 

(vl) The emission rates into the atmosphere of the pollutants in question 

from each facility described under paragraph (d) (1) (v) of this section both before and after the improvement or installation of any applicable controlsystem or any physical or operational 

changes to such facilities to reduce emission rate. 

(vll) A complete description of the 

procedures and methods used to determine the emission rates. 

(2) Compliance with paragraph (d) 

of this section may be demonstrated by 

the methods listed in paragraph (b> of 

this section, where appropriate. Decreases in emissions resulting from requirements of a State Implementation plan 

approved or promulgated under Part 52 

of this chapter will not be acceptable. 

The required reduction in emission rate 

may be accomplished through the installation or improvement of a control system or through physical or operational 

changes to facilities including reducing 

the production of a facility or closing a 

facility. 

(3) Emission rates established for the 

existing facility which is undergoing a 

physical or operational change resulting 

in an increase in the emission rate, and 

established for the facilities described 

under paragraph (d)(1) (v) of this section shall become the baseline for determining whether such facilities undergo 

a modification or are in compliance with 

standards. 

(4) Any emission rate in excess of that 

rate established under paragraph (d) 

(3) of this section shall be a violation of 

these regulations except as otherwise 

provided In paragraph (e) of lliln !__*• " " 

tion. However, any owner or operator 

electing to demonstrate compliance under this paragraph (d> must apply to 

the Administrator to obtain the use of 

any exemptions under paragraphs. (e> 

(2), (e)(3), and (e)(4) of. this-section. 

The Administrator will grant such exemption only if, in his Judgment, the 

compliance originally demonstrated under this paragraph will not be circumvented or nullified by the utilization of 

the exemption. 

(5) The Administrator may require 

the use of continuous **"**'nltf***''ng devices 

and compliance with necessary reporting 

procedures for each facility described in 

paragraph (d)(1) (ill) and (_Ml)(v) of 

t_Qs section. . v 

(e) The following shall not, by themselves, be considered modifications under 

this part: 

(1) Maintenance, repair, and replacement which the Administrator determines to be routine for a source category, 

subject to the provisions of paragraph 

(c) of this section and i 60.15. 

(2) An Increase in production rate of 

an existing facility, if that Increase can 

be accomplished without a capital expenditure on the stationary source containing that facility. , 

(3) An increase in the hours of operation. 

(4) Use -of an alternative fuel or raw 

material if, prior to the date any standard under this part becomes applicable 

to that source type, as provided by S 60.1. 

the existing facility was designed to accommodate that alternative use. A 

facility shall be considered to be designed 

to accommodate an alternative fuel or 

raw material If that use could be accomplished under the facility's construction 

FEDERAL REGISTER, VOL 40, NO. 242—TUESDAV, DECEMBER 16, 1973 
P.7 

58420 

specifications, as amended, prior to the 

change. Conversion to coal required for 

energy considerations, as specified in section 119(d)(5) of the Act, shall not be 

considered a modification. 

'5) The addition or use of any system 

or device whose primary function is the 

.-;ducti_n of air pollutants, except when 

r.n emission control system is removed 

o_ is replaced by a system which the Administrator determines to be less environmentally beneficial. 

(6) The relocation or change in 

ownership of an existing facility. 

if) Special provisions set forth under 

an applicable subpart of this part shall 

supersede any conflicting provisions of 

this section. 

ig) Within 180 days of the completion of any physical or operational 

change subject to the control measures 

specified in paragraphs (a) or (d) of 

this section, compliance with all applicable standards must be achieved. 

§ 60.15 Reconstruction. 

(a) An existing facility, upon reconstruction, becomes an affected facility, 

irrespective of any change in Ami«inn 

fate. 

(b) "Reconstruction" means the replacement of components of an existing 

facility to such an ex tent, that: 

(1) The fixed capital cost of the new 

components exceeds 50 percent of the 

fixed capital cost that would be required 

to construct a comparable entirely new 

facility, and 

(2) It is technologically and economIcall.- feasible to meet t__e applicable 

standards set forth In this part. 

(c)~"FlxEd~ capital cost" means the 

capital needed to provide all the depreciable component. 

(d) If an owner or operator of an 

existing facility piopos>es to replace components, and the fixed capital cost of the 

new components exceeds 50 percent of 

the fixed capital cost that would be required to construct a comparable entirely new facility, he shall notify ttee 

Administrator of the proposed replacements. The notice must be postm__£pd 

60 days (or as soon as practicable) before construction of Uie replacements Is 

commenced and must Include the following information: 

(1) Name and address of the owner 

or operator. 

(2) The location of <_»exirth_g faefllty. 

(3) A brief desciipttott eCUfeexisting 

facility and the compouuui*B-_.___e_i are to 

be replaced. -.•••-.>•••• 

(4) A description of tiie existing air 

pollution control equipment and the 

proposed air pollution control equipment. 

(5) An estimate of the fixed capital 

cost of the replacements and of constructing a comparable entirely, new 

facility. 

RW.E5 ANO REGULATIONS 

(6) The estimated life of the existing 

facility after the replacements. 

(7) A discussion of any economic or 

technical limitations the facility may 

have in complying with the applicable 

standards of performance after the proposed replacements. 

(e) The Administrator will determine, within 30 days of the receipt of the 

notice required by paragraph (d) of this 

section and any additional information 

he may reasonably require, whether, the 

proposed replacement constitutes reconstruction. 

(f) The Administrator's determination 

under paragraph (e) shall be based on: 

(1) The fixed capital cost of the replacements in comparison to the fixed 

capital cost that would be required to 

construct a comparable entirely new 

facility: 

(2) The estimated life of the facility 

after the replacements compared to the 

life of a comparable entirely new facility; 

(3) The extent to which the components being replaced cause or contribute 

to the emissions from the facility; and 

(4) Any economic or technical limitations on compliance with applicable 

standards of performance which are inherent in the proposed replacements. 

(g) Individual subparts of this part 

may include specific provisions which 

refine and delimit the concept of reconstruction set forth in this section. 

8. Part CO is amended by adding Appendix C as follows: 

3.4 Calculate the pooM < 

tioai. 

„ r("_-l) S.' + 

Airaron C-DramiMno a or IUTB 

U The foltowing __af__)d shall ba asad *o deter___ae 

-whether a physical or operational change to as eiHttng 

___IHty.aggdtad-gaaigniiai taIhii i1__li« iMitethe 

atmrsphere. The method used is the 8tudea_'e ( tag-, 

commonly used to make Inference- tram small ssraples. 

?.l Each emission test shall consist of ji race (usnaUy 

three) which ptoduce ** wrtssloi. ratn. ^""_n ^wo arts of 

e___g*eo____i are generated, one baton aaa-ame alt* the 

change, the two sets being ol equal size. 

2.2 When using manual emission tests, except as proTh__d In • m.sm, «tats part, Use lUUM-e m_thods ot 

__pp«ni_l_. A to tills oart shall be a_ed taa_o_n_H__rwMh 

tin uiumdiuuB spadflod ta the apnlleaMe subpart buni 

More ant aftar tha change ts oM__» (he data. 

1Z. S*haaa_l_««-ntlhaa__ii__«_tara,_la-__aU_Wa-_-lha 

operated at U a mandal emission test were being per-

«gm_i. VaMdata •* •— •— - — — — 

be required If a 

dnetad shall ba used. 

*a,l4ar 

g.+ilg-... +JB, 

* (1). 

•B=2_ B.-

I -l 

ja-gmij-lon rate ter thai thram. 

n^uBntbar tri rum 

1T f*gl-MhH tin ggniplg 

dataH-tag Equation 2. 

-**._». 

•*>*», using Equa -

nt-1 ) g t n

i a 

3.5 Calculate the test statistic 

2 » -

. = -

3, i

1 

L*i« 

H4. DnmMt. 

4.1 II £»>&-. and (>(', when: 

I obtained from Table 1, then 

difference between K» and ~k. 

crease in emission rate to the 

V Is the eritleal »alne of 

rith 96% eooiUence the 

is significant, and an in. 

s tmosphere has occurred. 

TASLS 

Degree ol freedom (n.+m-2): 

2 

3 

AOOA0OA0OOAA. 

8 _ 0. 

For greater than 8 degrees of freedom, see any standard 

statistical handbook cr text.

 n 

S.I A__u__e the two ' 

fallowing set of data: 

perioral mea tests produced the 

Testa: 

. Raa 1. MB. 

Raa 2. 95.. 

K n t no. 

5_2 Using iiV|ii«ti4fp i— 

_ 100-1-954 

E»= 

3 

115+120 + 125 

&-Z Using Equation «_*-— 

(.80-lQ2)H-(ft5-ip2)H-(l-0-102)' 

3-i . 

SS 

(115-120 •r-,+ (l*20-

£

 s

-=[ 

3 -

6.4Ui_Bg_ktaa«_eBS— 

(3-1 ) (58-5)+(3!-l) (25)T* 

3+3- 2 

&B t""_b_g-"quBtton t— 

120—102 

U 

S.48 

MS___a__a-H_r--0-4.f-2.lB 

stags tx * tfcagttffegeaea tat thi 

^gnl_a__W and theca haa ___>L _i|Bt0____J .— 

a na n _i.il Maria. 

^ ~ »- l ~ n- l %mmm 

g_se_,wl___.a«a_M__i,a_Dald 

ti_aakam«s««e__gg'«_ 

(^gg. IU -g-d !__<- -U» Cmmm* 

gee. «*) or fl* . *-_.VW**e*, *8I -

(2) I7B3iee3S-*ntl_rrae«IU-lS-18;8:45__n] 

- 2 

8£V' 

( 3 ) 

l, using Equation 4. 

1 "|"» "I ( 4 ) 

I' (95 

prrcrnl 

amiiitnu 

1-rrO 

2.020 

2.3S3 

2.132 

2.015 

LD43 

1.895 

1.860 

Tattb 

U5 

120 

. . . I2S 

110 

= 102 

= 120 

=*8.5 

l*20)»+ (125-120**' 

= 2 S 

T —«.4B 

r 

=3.412 

CftaaDT^Ian- TTcas 

taggaf fi.a_id K+t, 

t incragga in i_g_r_i 

ba used a> data points and 

-Air-__LaairMai.il by 

WTS ia Tj.tc nsibs at 

FEOERAt KeOtSTEH, VOL 40, NO. 242—TUESDAY, DCCCMM* V*, 1TT 3