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# OAR Box 1778 Prepped by Ollie Stewart



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TUESDAT , DECEMBE R 16 , 197 5

PART IV : 

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# ENVIRONMENTA L PROTECTIO N AGENC Y

STANDARD S O F PERFORMANC E FO R NE W STATIONAR Y SOURCE S

Modification , Notificatio n am ) Reco-astructiomP. 3

3841 6 Titl e 40—Protectio n o f Environmen t CHAPTE R I—ENVIRONMENTA L PROTECTION

AGENC Y SUBCHAPTE R C—AI R PROGRAM S

[ FR L 402-8 1 PAR T 60—STANDARD S O F PERFORM ANC E FO R NE W STATIONAR Y SOURCE S Modification , Notification , an d Reconstructio n O n October15. 197

4 (39 F R36946) , undersectio n 11 1 o

f th e Clea n AirAct, a s amended (4

2 U.S.C . 1857) . th e Environ menta l Protectio n Agenc y (EPA ) pro pose d amendment

s t o th e general provi sion s o f 4 0 CF RPart60 . Thes e amend ment s include d addition s and revision s t o clarif y th e definitio n o

f th e ter m "modification " appearin g i n th e Act, t o requir e notificatio n o

f constructio n o

r potentia l modification , an d t o clarif y when standard s o

f performance are ap plicabl e t o reconstructe d sources . Thes e regulation s apply t

o all stationar y source s constructe d ormodified afte rth e proposa l date o f a n applicabl e standar d o f performance . Intereste d partie s participate d i n th e rulemakin g b

y sendin g comment

s t o EPA . Fifty-thre e commentletter s wer e re ceived . 4 3 o f whic h cam e from industry , with th e remainde rcomin g from Stat e and Federal agencies . Copie s o f th e com men tletter s receive d an d a summary o f th e comments wit

h EPA' s response s are availabl e fo rpubli c inspectio n an d copy in g a tth e EP

A Publi c Informatio n Re ferenc e Uni tRoom 292

2 (EP A Library) , 40 1 M Stree tSW. , Washington , D.C . I n addition , copie s o

f th e commen tsummary and Agenc

y response s ma

y b e obtaine d upon writte n reques tfro

m th e EP A Pub li c Informatio n Cente r(PM-215) . 40 1 M Stree tSW. . Washington , D.C . 2046 0 (spe cif y Publi c CommentSummary—Modi fication. Notification , an d Reconstruc tion) . Th e comments hav e bee n care full y considered , and wher e determine d '-." th e Administrato rt o be appropriate , -*_nge s hav e been mad e t o th e proposed -ilatlon s an d are Incorporated I n th e i _7i_lation

s promulgate d herein . Th e mos tsignifican tcomments an d th e differ ence s between th e propose d an d promul gate d regulation s i *. discusse d below .

TERMINOLOG

Y Understandabl y there ha s bee n som e confusio n a s t o th e difference betwee n th e variou s type s o

f "sources " an d "facil ities " defined i n f

60.2 of thee e regula tions . Generall y speaking , "sources " ar e entir e plants , whil e "facilities' ' ar e Iden tifiabl e piece s o

f proces s equipmen to r individual components whic h whe n take n togethe rwoul d compris e a souroe . "Affecte d facilities " ar

e facilitie s subjec tt o standard s o

f performance , an d ar e spe cificall y identifie d i n th e firstsectio n of eac h subparto

f Par t60 ; A n "existin g facility " i s generall y a piec e o f equipmen t orcomponen to

f th e sam e typ e a s a n affecte d facility , butwhic h differs i n tha t i twa s constructe d prio rt o th e dat e of proposa l o f a n applicabl e standar d of performance . Thi s distinctio n I s some wha tcomplicate d becaus e a n existin g RULE S AN D REGULATION S facility which undergoes a modificatio n withi n th e meanin g o

f th e Actan d thes e regulation s become

s a n affected facility . However, generall y speaking , th e distinc tio n between "affecte

d facilities " and "existin g facilities " depends o n th e dat e o f construction . Th e term s ar e intende d t o b e th e directregulator

y counterpart

s o f th e statutor y definition s o f "ne w source " and "existin g source " appearin g i n sectio n 11 1 o

f th e Act . "Designated facilities " for m a sub category o

f "existin g facilities. " A "des ignate d facility " i s a

n existin g facility which emits a "designated pollutant, " i.e. . a pollutan twhich i s neithe ra haz ardou s pollutant , a s define d by sectio n 11 2 o f th e Act , nora pollutan tsubjec tt o national ambien tai rqualit y standards . Th e ter m "designated facilities. " how ever , ha s n o special relevance t o th e issu e o f modification . DEFINITIO N O

F "CAPITA

L EXPENDITURE " Severa l commentators argue

d tha tth e proposed definitio n o

f "capita l expendi ture, " a s applicabl e t

o th e exemptio n fo r increasin g th e productio n rate o f a n ex istin g facility i n § 60.14(e ) (2) , was to o vague . Th e regulation s promulgated herei n correctthi s deficienc y b y incorpo ratin g b y reference and b

y requirin g th e applicatio n o

f th e procedur

e containe d i n Internal Revenu e Servic e Publicatio n 534 , which i s availabl e fro m an y IR S of

fice. Th e procedur

e se tfort h in IR S Pub licatio n 534 i s relativel y straightfor ward . First , th e tota l cos to f increasin g th e productio n o

roperatin g rate mus tb e determined . Al

l expenditure s necessar

y t o increasin g th e facility' s operatin g rate mus tbe include d i n thi s total . However, fo rpurposes o

f § 60.14(e ) (2) thi s amoun t mus tno tbe reduce

d b y any "excluded additions, " as defined i n IR S Publicatio n 534 , a s would b

e done fo rtax purposes . Next , th e facility' s basi s (usuall y it s cost) , a s defined b

y Sectio n 1012 o

f th e Interna l Revenu e Code , mus tbe deter mined . If th e productof

th e appropriate "annua l asse tguidelin e repai rallowanc e percentage " tabulate d i n Publicatio n 534 an d th e facility' s basi s exceed s th e cos t of Increasin g th e operatin g rate, th e chang e wil l no tbe treate d a s a modifica tion . Conversely , if

th e cos to

f maltin g th e chang e i s more tha n th e above prod uc tan d th e emission s hav e increased , th e chang e wil l b e treate d a s a modification . Th e advantag e o

f adoptin g th e proce dure i n IR S Publicatio n 53 4 i s tha tfirm an d precis e guidanc e i s provided a s t o wha tconstitute s a capita l expenditure . Th e procedur

e involve s concepts an d in formatio n whic h ar e availabl e t o al l own er s an d operators and with which the y ar e familiar , an d i ti s th e Administrator' s opinio n tha tI

tadequatel y respond s t o th e complaint s o

f vaguenes s mad e i n comments . NOTIFICATIO

N O F CONSTRUCTIO

N Th e regulation s promulgate d ' herei n contai n a requirementtha towner s orop erator s notif

y EP A withi n 3

0 day s o f th e commencemen to

f constructio n o

f a n affecte d facility . Som e commentators , however , questione d th e Agency' s lega l •f

authorit y t o requir e sve h a notificatio n an d questione d th e neef

d fo rsuc h infor mation . Sectio n 301(a ) o

f the | Ac tprovides th e Administrato rauthorit

y t o issu e regula tion s "n3cessar

y t o cafry outhi s func tion s under[the ! Act. ' learne d through experienc e wit h admin isterin g th e new sourc e performance standard s tha tknowledge o f th e source s which ma y become sub . ec tt o th e stand ards i s importantt

o th e effectiv e imple mentatio n o

f sectio n 111 . Thi s notifica tio n will , no tbe used fo rapprova l or disapprova

l o f th e planne d construction : th e purpose is t

o allo w th e Administrato r t o locat e source s whic

h wil l be subjec tt o th e regulation s appearin g i n thi s part , and t o enabl e th e Administrato rt o in for m th e source s aboutapplicabl e regu lation s i n a n effor

tt o minimiz e futur e problems . I n th e cas e o

f mas s produced facilities , whic

h ar e purchased b

y th e ultimat e use rwhe n constructio n i s com pleted , th e constructio n notificatio n re quiremen twil l no tapply . Notificatio n prio rt o startup , howeverwill stil l b e required . US E O F EMISSIO N FACTOR S Th e proposed regulation s liste d emis sio n factor s a s on e possibl e metho d t o be use d I n determinin g whethe ra facilit y ha s increase d it s emissions . Emissio n factor s hav e tw o majo radvantages . First , the y are-inexpensiv e t o use . Second , the y may b e applie d prospectively . I.e. , the y ca n b e use d i n som e case s t o deter min e whethe ra particula rchang e will In creas e a facility' s emission s before th e chang e i s implemented . Thi s i s importan t t o owners o roperators sinc e the y ca n thereb y obtai n advanc e notic e o f th e consequence s o

f proposed change s the y ar e plannin g prio rt o commitmen tt o a particula rcours e o

f action . Emissio n fac tor s d o not , however , provid e result s a s precis e a s othe rmethods , suc h a s actua l stac k testing . Nevertheless , i n man y case s th e emissio n consequence s of a pro posed chang e ca n b e reliabl y predicte d by th e us e o

f emissio n factors . I n suc h cases , wher e emission s wil l clearl y in creas e o rwil l clearl y no tincrease , th e Agenc y wil l rel y primaril y o n emissio n factors . Onl y wher e th e resultin g chang e i n emissio n rat e i s ambiguous , o rwher e a disput e arise s a s t o th e resul tob taine d b y th e us e o

f emissio n factors , wil l othe rmethod s b e used . Sectio n 60.14(b ) ha s bee n revise d t o reflectthi s policy .

TH E "BUBBLE CONCEPT " Th e phras e "bubbl

e concept " ha s bee n use d t o refe rt o th e tradin g of f of emis sio n increase s from on e facilit y under goin g a physica l o roperationa l chang e wit h emissio n reduction s from anothe r facility , i n orde rt o achiev e n o ne tin creas e i n th e amoun to

f an y ai rpollut an t(t o whic h a standar d applies ) emit te d Int o th e atmospher e b y th e stationar y sourc e take n a s a whole . Sewerm l commentator s suggeste d tha t th*-"bubb_

e concept " b e extende d t o cove r "ne w construction. " Unde rth e proposed regulations , th e "bubbl

e | concept " coul d b e utilize d t o offse temissio n Increase s

FEOCIA l REGISTER

, VO L 40 , NO . 242—TUESDAY , DECEMBE R 16 , 197 5P. 4

RULE S AM D REGULATION

S 5841 7 fro m a facility undergoin g a physica l o r operationa

l chang e (a s distinguishe d fro m a "ne w facility" ) a ta lowereco nomic cos tthan woul

d aris e i f th e facil it y undergoing th e chang e wer e t o be considered b

y EP A a s being modifie

d withi n th e meanin g o

f sectio n 11 1 o

f th e Ac tand consequently require d t o meet standard s o

f performance . Unde

rth e suggeste d approac

h a ne w facilit y coul d b e adde d t o a n existin g source withou t havin g t o meetotherwis e applicabl e standard s o

f performance , provide

d th e amounto f an y ai rpollutan t(to whic h a standard applies ) emitte d into th e atmosphere b

y th e stationary sourc e taken a s a whol e did no tincrease . I f adopted , thi s suggestio n coul d exemp t mos tne w constructio n a texistin g sources fro m havin g t

o cpmpl y wit h otherwis e applicabl e standard s o f performance . Such a n interpretatio n o f th e sectio n 11 1 provisions o

f th e Actwoul

d gran ta sig nifican tand unfai reconomic advantag e t o owner s oroperators o

f existin g sources replacin g facilitie s with new construc tio n a s compared t

o someon e wishin g t

o constructa n entirel y ne

w source . I f th e bubble concep twere extende d t o covernew construction , larg e source s o f ai rpollutio n coul d avoi d th e applicatio n o f ne w source performance standard s in definitely . Such source s cou'. d contlnu a'ly replace obsolet

e o r wor n ou tfacili tie s with ne

w facilitie s o

f th e sam e type . I f th e sam e emissio n control s wer e adopted , n o overal l emissio n increas e woul d result . I n thi s manner , th e source coul d continu e indefinitel y withou teve r bein g required t

o upgrad e ai r pollutio n contro l system s t o mee tstandard s o f per formanc e fo rnew facilities . Th e Admin istrato rinterprets sectio n 11 1 t o requir e tha tnew producers o

f emission s b e sub jec tt o th e standard s whethe rcon structe d a ta ne w plan tsit e o r a n exist in g one . Therefore , where a ne w facility i s constructed , ne w sourc e performance standard s mos tb e met . I n situation s In volvin g physical o r operational change s t o a n existin g facility whic h Increas e emission s from tha tfacility , greate r flexlbilty i s permitte d t o avoi d th e im positio n o f larg e contro l cost s I

f th e pro jecte d Increas e ca n b e offse tb y con trollin g othe rplan tfae___t_es . Several commentator s argue d tha tI f th e Administrato radopte d th e proposed interpretatio n o

f the-ter m "modifica tion" , whic h woul d eo_nW1 u a modtBea tio n t o hav e occurre d e*en i f ther e was onl y a relativel y ___ta_

rdetectabl e emis sio n rat e increas e (ttras*m*-*-dri__ g appli catio n o f standard s o

f performance) , th e Administrato rwoul d I

n effec tpreven t owner s o r operators from implementin g physica l o r operational change s neces sar y t o switc h freo

n ga s an d oi l to coal i n compor twith th e President' s policy o f reducin g ga s an d oi l consumption . Th e Administrato rha s conclude d tha ttf suc h situation s exist , the rwil l b e relativel y rare and , i n an y event , wil l b e peculia r t o th e group o

f facultie s covere d by a particula rstandar d o f performance rathe rtha n t

o al l facilitie s I n general . Therefore , th e Administzata rha s furthe r conclude d tha ti twoul d b e mor e appro priat e t o conside rsuc h circumstance s an d possibl e avenue s o f relie f I n connec tio n with th e promulgatio n o f o ramend men tt o particula rstandard s o

f perform anc e rathe rtha n through th e amend men to f th e general provisions o f 4 0 CF RPart60 . Wher e th e us e o

f th e bubble concep t i s electe d b

y a n ownero r operator , som e guarante e is necessar

y t o insur e tha t emission s d

o no tsubsequently increas e above th e level presen tbefor e th e physi cal o r operational chang e i n question . Forexample , reducin g a facility' s oper atin g rat e i s a permissibl e mean s o f offsettin g emissio n increase s fro m anothe r facility undergoin g a physical o r opera tional change . I

f th e exemptio n provide

d b y i 60.14(e ) (2 ) a s promulgated herei n wer e subsequentl y use d t

o increas e th e firstfacility' s operatin g rate bac k t o th e prio rlevel , th e inten to f th e Ac twoul d b e circumvente d an d th e complianc e measure s previously adopte d would be nullified . Therefore , i n thos e case s where utilizatio n o

f th e exemption s unde r § 60.14(e ) (2) , (3) , o

r(4 ) a s promulgated herei n would effectivel y negate , th e com plianc e measure s originall y adopted , us e o f thos e exemption s wil l no tbe permitted . On e limitatio n place d o n utilisatio n o f th e "bubbl

e concept " b

y th e proposed regulatio n wa

s tha temissio n reduction s coul d b e credite d onl y i

f achieve d a ta n "existing " « r"affected " facility . Th e pur pos e o f thi s requirementwa s t o Umi tth e "bubbl e concept " t o thos e facilitie s whic h coul d b e sourc e teste d b y EP A referenc e methods . One commentato rpointe d ou t tha tsom e facilitie s othe rtha n "existing " or"affected " facultie s (Le „ facilitie s o

f th e typ e fo r whic h n o standard s hav e bee n promulgated ) len d themselve s t o accurat e emissio n measurement . There fore , i 60.14(d ) ha s been revise d t o per mi temissio n reduction s t o be credite d fro m al l facilitie s whos e emission s ca n b e measure d b

y reference , equivalent , o r alternativ e methods , a s define d i n 3 60. 2 (s) , (t) , an d (u) . I n addition , whe n a facilit y whic h canno tb e teste d b y an y o f thes e method s I

s permanentl y closed , th e regulation s hav e bee n revise d t o per mi temissio n rat e reduction s from such , closure s t o b e use d t o offse temissio n rat e increase s i

f method s suc h a s emissio n factor s clearl y show , t o th e Administra tor' s satisfactio n tha tth e reductio n offset s an y increase . 13-6'regulatio n doe s no tallo w facilitie s which-canno tb e teste d by an y o f thes e method s t o reduce thei r productio n a s a mean s o f reducin g emis sion s t o offsetemissio n rat e increase s be caus e establishin g allowabl e emission s fo r suc h facilitie s an d monitorin g compli anc e t o insure tha tth e allowabl e emis sion s ar e no texceede d woul d be very difficultan d eve n impossibl e i n man y cases . Also , unde rth e proposed regulation s applicabl e t

o th e "bubbl

e concept. " ac tua l emissio n testin g wa s th e onl y per missibl e metho d fo r demonstratin g tha t ther e ha s bee n n o Increas e i n the-lnta l emissio n rat e o

f an y pollutan tt o whic h a standar d applie s fro m al l facilitie s withi n th e stationar y sonxne . Severa l commentator s correctl y argue d -tha tI f method s suc h a s emissio n factoaa ar e sufficiently accurate t o determin e emis sio n rate s unde rothe rsection s o f th e regulatio n [Le . § 60.14(b)] , they shoul d b e adequat

e fo r th e purposes o

f utiliza tio n o f th e bubbl

e concept . Thus , th e regulation s hav e bee

n revise d t

o permit th e us e o f emissio n factor s i n thos e case s where i tca n be demonstrate d t o th e Ad ministrator' s satisfactio n tha tthe y wil l clearl y sho w tha ttota l emissions , will o rwill no tincrease . Wher e th e Admin istrato ri s no tconvince d o f th e reliabilit

y o f emissio n factor s i n a particula rcase , othe rmethod s will b e required .

OWNERSHI P CHANC E Th e regulatio n ha s been amende d b y addin g 5 60.14(e ) (6 ) which state s tha ta chang e i n ownershi p o r relocatin g a source doe s no tb

y itsel f brin g a source underthes e modificatio n regulations .

RECONSTRUCTIO N Severa l commentator s questione d th e Agency' s legal authority t o propos e standard s o

f performanc e o n recon structe d sources . Man

y commentator s furthe rbelieve d tha tth e Agenc y i s at temptin g t o delet e th e emissio n increas e requirementfrom th e >*4»t**ni_ir__ . of modi fication. Th e Agency' s actua l inten ti s t o preven tcircumventio n o f th e law . Sec tio n 11 1 o

f th e Actrequire s complianc e with standard s o f

perfon____ao

e i n two cases. - ne w constructio n ani l modifica tion . Th e reconstructio n provisio n i s in tende d t o apply wher

e a n filiatin g facil ity' s component s ac e replace d t o suc h a n exten tthat . I ti s technoloe-lcaB y an d economicall y feasibl e fo r th e reconstructe d facilit y t o compl y with th e ap plicabl e standard s o

f performance . I n th e cas e o

f a n entirel y nea

rfacility , th e propertim e t o apply th e bes tadeq>___tel y demonstrate d contro l technolog y I s whe n th e facility i s originall y eonstaicted . A s explaine d i n th e preambl e t o th e pro posed regulation , th e purpos e o f th e re constructio n provisio n i s t o recogniz e tha trenlaoemento f

man y o f

th e com ponent s o f

a facilit y ca n b e aiinst

— flail ? equivalen tt o totally replacin g i ta t-th e en d of-tt s usefu l ttfe wit h a newl v con structe d affecte d f___iUt» . Fo r existin g facilitie s whic h rabatanriaBy retai n U_el r characte ra s existin g faciUhca . applica tio n e f best - _K_t-?____e_

rdemonstrate d contro l teo____alot

ri s considere d a«pro pciat e whe n an y nh-ostoa l o ropeBattena

l ettaag e i s aaad

e whic h causa e a n ineoans e I n emission s t o th e atmosoher e (thi s i s modification) . Thus , th e criteria*fo r"re construction* * ar e Independen tfro m th e crtten&ro r.modf-lsetton . Occtton a 69.1 4 an d W.tVse tupthepro cedoa e an d criteri a tote wae d I n matin g Bjuataly-(le__M__iir_tfe-l4__-_-M- > tTi'timiiirv

y t a *******? facilitie s t o u__J___ i som e -•VH-Tlgf f *___!__

, ____«

_HH,f)fl f Unde rth e propose d regulaMoiia. th e replacemen tof

a _T_b_*t-__"t_a

l portion - of a n exxstB g tttcSKi^B c0HpssM_-tB"ven ~ stltute d reeonstntetton . Man y cnantn tato s questione d th e n—in g e f ""subAfte rconsiderin g th e an d th e vaaomea a o f

tbl s th e Ase____

y decide d to revis e th e proposed recu_is

U uriln p p_*o*d______e_

. t o

FEDERA L ICOISTGR, VO L .40 , NO . 241—TUESMY, * 1ft , 1*7 5P. 5



### 5841 8 bette rclarif

y t o owner

s oroperators wha t action s the y mus ttak e an d wha tactio n th e Administrato rwil l take . Sectio n 60.1 5 o f th e regulation s a s revise d specifie s tha treconstructio n occurs upon replace men to f components i

f th e fixed capital cos to f th e ne w component

s exceed s 5

0 percen to

f th e fixed capita l cos ttha t would b e required t

o construc ta com r parabl e entirel y ne

w facility and i ti s technologicall y and economicall y feasi ble fo r th e facility afte rth e replace ments t o comply wit

h th e applicabl e standard s o

f performance . Th e 5

0 per cen treplacemen tcriteri a i s designe d merel y t o key th e notificatio n t o th e Administrator : i tI

s no ta n independen t basi s fo r th e Administrator' s determina tion . Th e ter

m "fixe d capita l cost " i s de fined a s th e capita l neede d t o provid e al l th e - depreciabl e components an d I s in tende d t o includ e such thing s a s th e cost s • o f engineering , purchase , an d installa tio n o f majo rproces s equipment, con tractors ' fees , instrumentation , auxiliary facilities , buildings , and structures . Cost s associate d with th e purchas e an d ins t.' - latlo n o f ai r pollutio n contro l equiprr . n (e.g. , baghouses , electrostati c precipita tors , scrubbers , etc. ) are no tconsidere d I n estimatin g th e fixed capita l cos tof a comparabl e entirel y ne w facility unles s tha tcontro l equipmen ti s required a s r to f th e proces s (e.g. , productre - -y) . a revise d 8 60.1 5 leave s th e final de unatlo n with th e Administrato ra s t o whe n i ti s technologicall y an d eco nomicall y feasibl e t

o compl y wit

h th e applicabl e standard s o f performance , •"•urthe rclarificatio n an d definitio n i s no tpossibl e becaus e th e spectrum o f re placemen tproject s tha twil l tak e plac e i n th e futur e a texistin g facilitie s i s s o broad tha ti ti s no tpossibl e t o b e an y more specific . Sectio n 60.1 5 set s forth th e criteri a whic h th e Administrato rwil l us e i n makin g hi s determination . Fo r example , i

f th e estimate d - life o

f th e -'"'t y afte rth e replacement s I s aig - 'ntl y les s tha n th e estimate d lif e e w facility , th e replacemen tma y considere d reconstruction . If th e tH,__,,.nen

tbein g replace d doe s no temi t o rcaus e a n emissio n o

f a n ai r pollutant , i tmay b e determine d tha tcontrolling ; th e components tha td o emi tai r pol lutant s t s no treasonabl e constdertng ' cost , an d standard s o

f performanc e fo r new source s shoul d no tbe^applied . I f ther e Is Insufficientspac e afte rth e re placement s a ta n e____t___g>facHit y t o in stal l th e necessar y ai rpoflnt_o n contro l syste m t o compl y wit h th tstandard s o f performance , the n reconstruction would . no tb e determine d t o ha w occurred . Finally , th e Administrato rwi n conside r al l technica l an d economi c limitation s th e facilit y ma y hav e i n complylng.wlth th e applicabl e standard s of performanc e afte rth e propose d replacements Whil e S 60.1 6 expresse s th e basi c Agenc y policy an d Interpretatio n regard in g reconstruction . Individual subpart s ma y refin e an d delimi tth e concep ta s applie d t o individua l categorie s o f facilities . RULE S AN O REGULATION S

RESPONS E T O REQUEST S FO R DETERMINATIO N Sectio n 60.5 ha s been revised t o in dicate tha tth e Administrato rwill make a determinatio n o

f whethe ra n actio n b y a n ownero

r operato rconstitute s re constructio n withi n th e meanin g o f 8 60.15 . Also , i n respons e t o a publi c com ment, a new s 60.5(b ) ha s bee n added t o indicate th e Administrator' s intentio n t o respon d t o request s for determination s withi n 3 0 days o f receip to f th e request. STATISTICA

L TES T Appendi x C o f th e regulatio n incorpo rate s a statistica l procedur e fo r deter minin g whethe ra n emissio n increas e ha s occurred . Several individual s commente d o n th e procedur

e a s proposed . Afte rcon siderin g al l thes e comment s and con ductin g furthe rstud y into th e subject , th e Administrato rha s determine d tha t a statistica l procedur

e i s substantiall y superio rt o a metho d comparin g averag e emissions , and tha tn

o othe rstatistica l procedur e i s clearl y superio rt o th e on e adopted (Student' s ttest) . A mor e de taile d analysi s o

f thi s issu e ca n b e foun d in EPA' s response s t

o th e comment

s mentione d previously . Effective date. Thes e regulation s ar e effective o n December16 , 1975 . Sinc e the y represen ta clarificatio n o f th e Agency' s existin g enforcemen tpolicy , good caus e i s found fo r no tdelayin g th e effectiv e date , a s required b y 5 U.S.C : 553(d ) (3) . However, th e regulation s will , i n effect , appl y retroactivel y t o an y en forcemen tactivity now i n progres s sinc e the y d o reflectpresen tAgency policy . (Section s 111 . 114 . an d 30 1 o f th e Clea n Ai r Act . a s amende d (4 3 U.S.C . 1857c-6 . 18S7c-9 . an d 18S7g) ) Dated : December8,1975 .

RUSSELL E . TRAIN , Administrator. Par t6 0 of Chapte rI . Titl e 4 0 of

th e Cod e o f Federal Regulation s i s amende d a s follows : 1 . Th e tabl e o

f section s I

s amende d by addin g S S 60.1 4 an d 60.1 5 an d Appendix C a s follows :

Subpar t A Genera l Provtaton a

00.1 4 60-tf t Modification . Reconstruction .

o f <h ) "Modification " mean s any physi cal chang e in , o

r chang e i n th e metho d o f operatio n of

. a n existin g facility whic h increase s th e amoun

to f an y ai rpollutan t (to which a standar d applies ) emitte d into th e atmospher e b

y tha tfacility o

r which results i n th e emissio n o f any ai r pollutan t(t o which a standar d applies ) int o th e atmosphere no tpreviously emitted .

Appendi x C—Determinatio

n Bat e Change . 2 . I n i 60.2 . paragraph s (d > an d (h ) ar e revise d an d paragraph s (aa ) an d (bb ) ar e added a s follows : § 60- 2 Definitions . » • • • * (d ) "Stationary source " mean s an y building , structure , facility , o rInstalla tio n whic h emit s o r ma y emi tan y ai r pollutan tan d whic h contain s an y on e o r combinatio n of

th e following : (1 ) Affecte d facilities . (2 ) Existin g facilities . (3 ) Facilitie s o

f th e type ; fo r whic h n o standard s hav e been promulgate d m thi s part . (aa ) "Existin g facility " means , wit h referenc e t

o a stationar y source , an y ap paratu s o f th e typ e for which a standar d i s promulgate d i n thi s part , an d th e con structio n o

r modiflc : commence d before th e dat e o f proposa l o f tha tstandard : o

r an y apparatu s which coul d b e altere d i n suc h a wa y a s t o b e o f tha ttype . (bb ) "Capita

l expenditure " mean s a n expenditur e fo r a physical or operationa l chang e t o a n existin g facility whic h e x ceed s th e producto

f nua l asse tguidelin e repai rallowanc e percentage " specifie d i n th e lates tedi tio n o f Interna l Revenu e Servic e Publi catio n 534 an d th e basis , a s define d by Interna l Revenu e Code

tio n o f which was

th e applicabl e "an existln g facility' s section 1012 o

f th e revised t o rea d a s 3 . Sectio n 60.5 i s follows : § 60. 5 Determinatio n o f constructio n o r modification . (a ) Whe n requeste d t o do s o by a n owne ror operator , J th e Administrato r wil l mak e a determinatio n o f whethe r actio n take n o r intende d t o b e take n b y suc h owne ro r operato rconstitute s con structio n (includin g reconstruction ) or modificatio n or th e commencemen t thereo f withi n th e meanin g o

f thi s part . (b ) Th e Administrato rwil l respon d t o an y reques tfo r a determinatio n unde r paragrap h (a ) o

f thi s sectio n withi n 30 day s o f receip to

f suc h request . 4 . I n S 60.7 , paragraph s (a)(1 ) an d

an d paragraph s (e ) are adde d a s (a ) (2 ) ar e revised , (a ) (a)(4) , an d follow, : § 60. 7 "Notificatio n an d recordkeeping ,

operato rsubjec tt o par tshall furnis h writte n notificatio n (a ) Any owne ro r th e provision s o

f thi s t h e Administrato r a s follows : (1 ) A notificatio n o l tio n (o r reconstructi o a S 60.15 . o

f a n affecte d mence d postmarke d day s .afte rsuc h date , shkl l no tappl y I n th e duce d facilitie s whic

h complete d form . (2 ) A notificatio n dat e of initia l startu p facilit y postmarke d day s no rles s tha n 30 date . (3- A notificatio n o

f tiie actua l dat e o f lnitif l startu p tr

f a n affecte d facilit y postmarke d withi n 15 day s afte rsuc h "Bate . (4 ) A notificatio n of

an y physica l o r operationa l chang e t o It y whic h ma y Increas e th e emissio n rat e o f an y ai r pollutan tt o whic h a stand ard applies , unles s tha tchang e i s spe th e dat e construe a s define d unde r facilit y I s corn n o late rtha n 30 Thi s requiremen t cas e o f mass-pro ar e purchase d i n j f th e anticipate d of a n affecte d ho tmor e tha n 6

0 day s prio rt o suc h

HoatA i tfoism , vo c *o , NO . Ma—TUESDAY, DECIMI M 16 , .97$P. 6

RULE S AN D REGULATION S 

### 5841 9 cificall y exempte d unde ra n applicabl e subpar to ri n § 60.14(e ) an d th e exemp tio n I s no tdenie d unde rS 60.14(d)(4) . Thi s notic e shal l b e postmarke d 60 day s o ra s soo n a s practicabl e befor e th e chang e i s commence d an d shal l includ e informatio n describin g th e precis e na tur e o f th e change , presen tan d propose d emissio n contro l systems , productiv e capacit y o f

th e facilit y befor e an d afte r th e change , an d th e expecte d comple tio n dat e o f

th e change . Th e Administra to rma y reques tadditiona l relevan tin formatio n subsequen tt o thi s notice . • • • • • (e ) I f notificatio n substantiall y simila r t o tha ti n paragrap h (a ) o f thi s sectio n i s require d b y an y othe rStat e o rloca l agency , sendin g th e Administrato ra cop y o f tha tnotificatio n wil l satisf y th e requirement s o f

paragrap h (a ) o f

thi s section . 5 . Subpar tA i s amende d b y addin g § § 60.1 4 an d 60.1 5 a s follows : § 60.1 4 Modification . (a ) Excep ta s provide d unde rpara graph s (d) , (e ) an d (f ) o f thi s section , an y physica l o roperationa l chang e t o a n existin g facilit y whic h result s i n a n Increas e i n th e emissio n rat e t o th e atmospher e o f

an y pollutan tt o whic h a standar d applie s shal l b e considere d a modificatio n withi n th e meanin g o f sec tio n 11 1 o f

th e Act . Upo n modification , a n existin g facilit y shal l becom e a n affecte d facilit y fo reac h pollutan tt o whic h a standar d applie s an d fo rwhic h ther e i s a n increas e i n th e emissio n rat e t o th e atmosphere . (to ) Emissio n rat e shal l b e expresse d a s kg/h ro f an y pollutan tdischarge d int o th e atmospher e fo rwhic h a standar d i s applicable . Th e Administrato rshal l us e th e followin g t o determin e emissio n rate : (1 ) Emissio n factor s a s specifie d i n th e lates tissu e o f

"Compilatio n o f

Ai r Pollutan tEmissio n Factors, " EP A Pub licatio n No . AP-42 . o rothe remissio n factor s determine d b y th e Administrato r t o b e superio rt o AP-4 2 emissio n factors , i n case s wher e utilizatio n o f emissio n factor s demonstrat e tha tth e emissio n leve l resultin g fro m th e physica l o rop erationa l chang e wil l either-clearl y in creas e o rclearl y no tincrease . (2 ) Materia l balances , continuou s monito rdata , o rmatiua l emissio n test s i n case s wher e utilizatio n o f emissio n factor s a s reference d i n paragrap h (b ) (1 ) o f thi s sectio n doe s no tdemonstrat e t o th e Administrator's - satisfactio n whethe rth e emissio n leve l resultin g fro m th e physica l o roperationa l chang e wil l eithe rclearl y increas e o rclearl y no tin crease , o rwher e a n owne ro roperato r demonstrate s t o th e Administrator' s satisfactio n tha tther e ar e reasonabl e ground s t o disput e th e resul tobtaine d b y th e Administrato rutilizin g emissio n fac tor s a s reference d i n paragrap h (b ) (1 ) o f thi s section . Whe n th e emissio n rat e Is base d o n result s fro m manua l emissio n test s o rcontinuou s monitorin g systems , th e procedure s specifie d i n Appendi x C o f thi s par tshal l b e use d t o determin e whethe ra n Increas e i n emissio n rat e ha s occurred . Test s shal l b e conducte d unde r suc h condition s a s th e Administrato r shal l specif

y t o th e owne ro roperato r base d o n representativ e performanc e o f th e facility . A tleas tthre e vali d tes t run s mus tb e conducte d befor e an d a t leas tthre e afte rth e physica l o ropera tiona l change . Al l operatin g parameter s whic h ma y affec temission s mus tb e hel d constan tt d th e maximu m feasibl e degre e fo ral l tes truns . (c ) Th e additio n o

f a n affecte d facilit y t o a stationar y sourc e a s a n expansio n t o tha tsourc e o ra s a replacemen tfo r a n existin g facilit y shal l no tb y itsel f brin g withi n th e applicabilit y o f thi s par tan y othe rfacilit y withi n tha t source . (d ) A modificatio n shal l no tb e deeme d t o occu rif

a n existin g facilit y undergoe s a physica l o roperationa l chang e wher e th e owne ro roperato rdemonstrate s t o th e Administrator' s satisfactio n (b y an y o f th e procedure s prescribe d unde rpara grap h (b ) o f

thi s section ) tha tth e tota l emissio n rat e o f

an y pollutan tha s no t increase d fro m al l facilitie s withi n th e stationar y sourc e t o whic h appropriat e reference , equivalent , o ralternativ e methods : a s define d i n § 60. 2 (s) , (t ) an d (u) , ca n b e applied . A n owne ro roperato r ma y completel y an d permanentl y clos e an y facilit y withi n a stationar y sourc e t o preven ta n increas e i n th e tota l emis sio n rat e regardles s o f whethe rsuc h reference , equivalen to ralternativ e metho d ca n b e applied , i f th e decreas e i n emissio n rat e fro m suc h closur e ca n b e adequatel y determine d b y an y o f th e procedure s prescribe d unde rparagrap h (b ) o f thi s section . Th e owne ro roper ato ro f th e sourc e shal l hav e th e burde n o f demonstratin g complianc e wit h thi s section . (1 ) Suc h demonstratio n shal l b e i n writin g an d shal l Include : (1 ) Th e nam e an d addres s o f

th e owne ro roperator . (il ) Th e locatio n o f

th e stationar y source . (ill ) A complet e descriptio n o f th e ex istin g facilit y undergoin g th e physica l o roperationa l chang e resultin g I n a n In creas e i n emissio n rate , an y applicabl e contro l system , an d th e physica l o rop erationa l chang e t o suc h facility . (iv ) Th e emissio n rate s Int o th e at mospher e fro m th e existin g facilit y o f eac h pollutan tt o whic h a standar d ap plie s determine d befor e an d afte rth e physica l o roperationa l chang e take s place , t o th e exten tsuc h informatio n I s know n o rca n b e predicted . (v ) A complet e descriptio n o f eac h facilit y an d th e contro l systems , i f any , fo rthos e facilitie s withi n th e stationar y sourc e wher e th e emissio n rat e o f eac h pollutan ti n questio n wil l be . decrease d t o compensat e fo rth e Increas e i n emis sio n rat e fro m th e existin g facilit y un dergoin g th e physica l o roperationa l change . (vl ) Th e emissio n rate s int o th e at mospher e o f

th e pollutant s i n questio n fro m eac h facilit y describe d unde rpara grap h (d ) (1 ) (v ) o f

thi s sectio n bot h be for e an d afte rth e improvemen to rin stallatio n o f

an y applicabl e control syste m o ran y physica l o roperationa l change s t o suc h facilitie s t o reduc e emis sio n rate . (vll ) A complet e descriptio n o f th e procedure s an d method s use d t o deter min e th e emissio n rates . (2 ) Complianc e wit h paragrap h (d ) o f thi s sectio n ma y b e demonstrate d b y th e method s liste d i n paragrap h (b > o f thi s section , wher e appropriate . Decreas e s i n emission s resultin g fro m require ment s o f a Stat e Implementatio n pla n approve d o rpromulgate d unde rPar t5 2 o f thi s chapte rwil l no tb e acceptable . Th e require d reductio n i n emissio n rat e ma y b e accomplishe d throug h th e instal latio n o rimprovemen to f a contro l sys te m o rthroug h physica l o roperationa l change s t o facilitie s includin g reducin g th e productio n o

f a facilit y o rclosin g a facility . (3 ) Emissio n rate s establishe d fo rth e existin g facilit y whic h i s undergoin g a physica l o roperationa l chang e resultin g i n a n increas e i n th e emissio n rate , an d establishe d fo rth e facilitie s describe d unde rparagrap h (d)(1 ) (v ) o f thi s sec tio n shal l becom e th e baselin e fo rdeter minin g whethe rsuc h facilitie s underg o a modificatio n o rar e i n complianc e wit h standards . (4 ) An y emissio n rat e i n exces s o f tha t rat e establishe d unde rparagrap h (d ) (3 ) o f thi s sectio n shal l b e a violatio n o f thes e regulation s excep ta s otherwis e provide d I n paragrap h (e ) o f llil n !__*

• " " tion . However , an y owne ro roperato r electin g t o demonstrat e complianc e un de rthi s paragrap h (d > mus tappl y t o th e Administrato rt o obtai n th e us e o f an y exemption s unde rparagraphs . (e> (2) , (e)(3) , an d (e)(4 ) of . this-section . Th e Administrato rwil l gran tsuc h ex emptio n onl y if

, i n hi s Judgment , th e complianc e originall y demonstrate d un de rthi s paragrap h wil l no tb e circum vente d o rnullifie d b y th e utilizatio n o f th e exemption . (5 ) Th e Administrato rma y requir e th e us e o f

continuou s **"**'nltf***''n g device s an d complianc e wit h necessar y reportin g procedure s fo reac h facilit y describe d i n paragrap h (d)(1 ) (ill ) an d (_Ml)(v ) o f t_Q s section . . v (e ) Th e followin g shal l not , b y them selves , b e considere d modification s unde r thi s part : (1 ) Maintenance , repair , an d replace men twhic h th e Administrato rdeter mine s t o b e routin e fo ra sourc e category , subjec tt o th e provision s o f paragrap h (c ) o f thi s sectio n an d i 60.15 . (2 ) A n Increas e i n productio n rat e o f a n existin g facility , i f

tha tIncreas e ca n b e accomplishe d withou ta capita l ex penditur e o n th e stationar y sourc e con tainin g tha tfacility . , (3 ) A n increas e i n th e hour s o f opera tion . (4 ) Us e -o

f a n alternativ e fue l o rra w materia l if

, prio rt o th e dat e an y stand ar d unde rthi s par tbecome s applicabl e t o tha tsourc e type , a s provide d b y S 60.1 . th e existin g facilit y wa s designe d t o ac commodat e tha talternativ e use . A facilit y shal l b e considere d t o b e designe d t o accommodat e a n alternativ e fue l o r ra w materia l I

f tha tus e coul d b e accom plishe d unde rth e facility' s constructio n

FEDERA L REGISTER

, VO L 40 , NO

. 242—TUESDAV

, DECEMBE

R16 , 1973P. 7

58420 specifications , a s amended , prio rt o th e change . Conversio n t o coa l require d fo r energ y considerations , a s specifie d i n sec tio n 119(d)(5 ) o

f th e Act , shal l no tb e considere d a modification . '5 ) Th e additio n o r us e o f an y syste m o rdevic e whos e primar y functio n i s th e .-;ducti_ n o f

ai r pollutants , excep twhe n r.n emissio n contro l syste m i s remove d o

_i s replace d b y a syste m whic h th e Ad ministrato rdetermine s t o b e les s en vironmentall y beneficial . (6 ) Th e relocatio n o r chang e i n ownershi p o f

a n existin g facility . if) Specia l provision s se tfort h unde r a n applicabl e subpar to f thi s par tshal l supersed e an y conflictin g provision s o f thi s section . ig ) Withi n 18

0 day s o f

th e comple tio n o f an y physica l o r operationa l chang e subjec tt o th e contro l measure s specifie d i n paragraph s (a ) o r (d ) o f thi s section , complianc e wit h al l appli cabl e standard s mus tb e achieved . § 60.1 5 Reconstruction . (a ) A n existin g facility , upo n recon struction , become s a n affecte d facility , irrespectiv e o f

an y chang e i n Ami«in n fate . (b ) "Reconstruction " mean s th e re placemen to f

component s o f

a n existin g facilit y t o suc h a n e x tent , that : (1 ) Th e fixed capita l cos to f th e ne w component s exceed s 5 0 percen to f th e fixed capita l cos ttha twoul d b e require d t o construc ta comparabl e entirel y ne w facility , an d (2 ) I ti s technologicall y an d econom Icall. - feasibl e t o mee tt__ e applicabl e standard s se tfort h I n thi s part . (c)~"FlxEd ~ capita l cost " mean s th e capita l neede d t o provid e al l th e de preciabl e component . (d ) I f a n owne ro roperato ro f a n existin g facilit y piopos>es t o replac e com ponents , an d th e fixed capita l cos to f th e ne w component s exceed s 5 0 percen to f th e fixed capita l cos ttha twoul d b e re quire d t o construc ta comparabl e en tirel y ne w facility , h e shal l notif y tte e Administrato ro f

th e propose d replace ments . Th e notic e mus tb e postm__£p d 60 day s (o r a s soo n a s practicable ) be for e constructio n o f

Ui e replacement s I s commence d an d mus tInclud e th e fol lowin g information : (1 ) Nam e an d addres s o f th e owne r o roperator . (2 ) Th e locatio n o f

<_»exirth_ g faefl lty . (3 ) A brie f

desciipttot teCUfeexistin g facilit y an d th e compouuui*B-_.___e_ i ar e t o b e replaced . -.•••-.>••• • (4 ) A descriptio n o f

tii e existin g ai r pollutio n contro l equipmen tan d th e propose d ai r pollutio n contro l equip ment . (5 ) A n estimat e o f

th e fixed capita l cos to f th e replacement s an d o f con structin g a comparabl e entirely , ne w facility . RW.E 5 AN O REGULATION S (6 ) Th e estimate d lif

e o f th e existin g facilit y afte rth e replacements . (7 ) A discussio n o f

an y economi c o r technica l limitation s th e facilit y ma y hav e i n complyin g wit h th e applicabl e standard s o f

performanc e afte rth e pro pose d replacements . (e ) Th e Administrato rwil l deter mine , withi n 3 0 day s o f th e receip to f

th e notic e require d b y paragrap h (d ) o f thi s sectio n an d an y additiona l informatio n h e ma y reasonabl y require , whether , th e propose d replacemen tconstitute s re construction . (f ) Th e Administrator' s determinatio n unde rparagrap h (e ) shal l b e base d on : (1 ) Th e fixed capita l cos to f th e re placement s i n compariso n t o th e fixed capita l cos ttha twoul d b e require d t o construc ta comparabl e entirel y ne w facility : (2 ) Th e estimate d lif

e o f th e facilit y afte rth e replacement s compare d t o th e lif e o f a comparabl e entirel y ne w facility ; (3 ) Th e exten tt o whic h th e compo nent s bein g replace d caus e o r contribut e t o th e emission s fro m th e facility ; an d (4 ) An y economi c o r technica l limita tion s o n complianc e wit h applicabl e standard s o f

performanc e whic h ar e in heren ti n th e propose d replacements . (g ) Individua l subpart s o f thi s par t ma y includ e specifi c provision s whic h refin e an d delimi tth e concep to f recon structio n se tfort h i n thi s section . 8. Par tC

O i s amende d b y addin g Ap pendi x C a s follows : 3. 4 Calculat e th e poo M < tioai.

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3-i . SS (115-12 0 •r- ,

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= 12 0

=*8. 5 l*20)» + (125-120** '

= 2 S 

# T —«.4 B 

# r =3.41 2

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FEOERA t KeOtSTEH , VO L 40 , NO . 242—TUESDAY , DCCCMM * V* , 1TT 3