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and
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2003
1
For
the
reasons
set
out
in
the
preamble,
title
40,
chapter
I
of
the
Code
of
Federal
Regulations
is
amended
as
follows:

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:

a.
By
revising
paragraph
(
a)(
1)(
v)(
C)(
1).

b.
By
adding
paragraphs
(
a)(
1)(
xliii)
through
(
xlvi),

and
paragraphs
(
h)
and
(
i).

The
revision
and
additions
read
as
follows:

§
51.165
Permit
requirements.

(
a)
*
*
*

(
1)
*
*
*

(
v)
*
*
*

(
C)
*
*
*

(
1)
Routine
maintenance,
repair
and
replacement.

Routine
maintenance,
repair
and
replacement
shall
include,

but
not
be
limited
to,
any
activity(
s)
that
meets
the
requirements
of
the
equipment
replacement
provisions
contained
in
paragraph
(
h)
of
this
section.

*
*
*
*
*
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(
xliii)(
A)
In
general,
process
unit
means
any
collection
of
structures
and/
or
equipment
that
processes,

assembles,
applies,
blends,
or
otherwise
uses
material
inputs
to
produce
or
store
an
intermediate
or
a
completed
product.
A
single
stationary
source
may
contain
more
than
one
process
unit,
and
a
process
unit
may
contain
more
than
one
emissions
unit.

(
B)
Pollution
control
equipment
is
not
part
of
the
process
unit,
unless
it
serves
a
dual
function
as
both
process
and
control
equipment.
Administrative
and
warehousing
facilities
are
not
part
of
the
process
unit.

(
C)
For
replacement
cost
purposes,
parts
shared
between
two
or
more
process
units
are
proportionately
allocated
based
on
capacity.

(
D)
The
following
list
identifies
the
process
units
at
specific
categories
of
stationary
sources.

(
1)
For
a
steam
electric
generating
facility,
the
process
unit
consists
of
those
portions
of
the
plant
that
contribute
directly
to
the
production
of
electricity.
For
example,
at
a
pulverized
coal­
fired
facility,
the
process
unit
would
generally
be
the
combination
of
those
systems
from
the
coal
receiving
equipment
through
the
emission
stack
(
excluding
post­
combustion
pollution
controls),
including
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the
coal
handling
equipment,
pulverizers
or
coal
crushers,

feedwater
heaters,
ash
handling,
boiler,
burners,

turbinegenerator
set,
air
preheaters,
and
operating
control
systems.
Each
separate
generating
unit
is
a
separate
process
unit.

(
2)
For
a
petroleum
refinery,
there
are
several
categories
of
process
units:
those
that
separate
and/
or
distill
petroleum
feedstocks;
those
that
change
molecular
structures;
petroleum
treating
processes;
auxiliary
facilities,
such
as
steam
generators
and
hydrogen
production
units;
and
those
that
load,
unload,
blend
or
store
intermediate
or
completed
products.

(
3)
For
an
incinerator,
the
process
unit
would
consist
of
components
from
the
feed
pit
or
refuse
pit
to
the
stack,

including
conveyors,
combustion
devices,
heat
exchangers
and
steam
generators,
quench
tanks,
and
fans.

(
xliv)
Functionally
equivalent
part
means
a
part
that
serves
the
same
purpose
as
the
replaced
part.

(
xlv)
Fixed
capital
cost
means
the
capital
needed
to
provide
all
the
depreciable
components.
"
Depreciable
components"
refers
to
all
components
of
fixed
capital
cost
and
is
calculated
by
subtracting
land
and
working
capital
from
the
total
capital
investment,
as
defined
in
paragraph
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(
a)(
1)(
xlvi)
of
this
section.

(
xlvi)
Total
capital
investment
means
the
sum
of
the
following:
all
costs
required
to
purchase
needed
process
equipment
(
purchased
equipment
costs);
the
costs
of
labor
and
materials
for
installing
that
equipment
(
direct
installation
costs);
the
costs
of
site
preparation
and
buildings;
other
costs
such
as
engineering,
construction
and
field
expenses,
fees
to
contractors,
startup
and
performance
tests,
and
contingencies
(
indirect
installation
costs);
land
for
the
process
equipment;
and
working
capital
for
the
process
equipment.

*
*
*
*
*

(
h)
Equipment
Replacement
Provision.
Routine
maintenance,
repair
and
replacement
includes,
but
is
not
limited
to,
the
replacement
of
any
part
of
a
process
unit
with
an
identical
or
functionally
equivalent
part(
s),
and
maintenance
or
repair
activity(
s)
if
it
is
associated
with
the
replacement
of
a
part(
s),
without
regard
to
other
considerations,
provided
that
all
of
the
requirements
in
paragraphs
(
h)(
1)
through
(
3)
of
this
section
are
met.

Repair
and
maintenance
activities
are
associated
with
the
replacement
of
a
part
of
the
process
unit
if
they
are
conducted
in
conjunction
with
the
replacement.
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(
1)
Capital
Cost
threshold
for
Equipment
Replacement
(
i)
For
an
electric
utility
steam
generating
unit,
as
defined
in
51.165(
a)(
1)(
xx),
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
ii)
For
a
process
unit
that
is
not
an
electric
utility
steam
generating
unit
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
iii)
At
the
time
the
owner
or
operator
commences
the
replacement
activity,
the
owner
or
operator
shall
determine
the
replacement
value
of
the
process
unit;
and,
except
as
otherwise
allowed
under
paragraph
(
h)(
1)(
iv)
of
this
section,
the
replacement
value
of
the
process
unit
shall
be
based
on
an
estimate
of
the
fixed
capital
cost
of
constructing
a
new
process
unit,
or
on
the
current
appraised
value
of
the
process
unit.

(
iv)
As
an
alternative
to
paragraph
(
h)(
1)(
iii)
of
this
section
for
determining
the
replacement
value
of
a
process
unit,
an
owner
or
operator
may
choose
to
use
insurance
value
(
where
the
insurance
value
covers
only
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complete
replacement),
investment
value
adjusted
for
inflation,
or
another
accounting
procedure
if
such
procedure
is
based
on
Generally
Accepted
Accounting
Principles,

provided
that
the
owner
or
operator
sends
a
notice
to
the
reviewing
authority
at
the
beginning
of
the
process
unit's
fiscal
year.
Unless
the
owner
or
operator
submits
a
notice
to
the
reviewing
authority,
then
paragraph
(
h)(
1)(
iii)
of
this
section
will
be
used
to
establish
the
replacement
value
of
the
process
unit.
Once
the
owner
or
operator
submits
a
notice
to
use
an
alternative
accounting
procedure,
they
must
continue
to
use
that
procedure
for
the
entire
fiscal
year
for
that
process
unit.
In
subsequent
fiscal
years,
the
owner
or
operator
must
continue
to
use
this
selected
procedure
unless
an
another
notice
is
sent
to
the
reviewing
authority
selecting
another
procedure
consistent
with
this
paragraph
or
paragraph
(
h)(
1)(
iii)
of
this
section
at
the
beginning
of
such
fiscal
year.

(
2)
Basic
Design
Parameters.
The
replacement
does
not
change
the
basic
design
parameter(
s)
of
the
process
unit
to
which
the
activity
pertains.

(
i)
Except
as
provided
in
paragraph
(
h)(
2)(
iii)
of
this
section,
for
a
process
unit
at
a
steam
electric
generating
facility,
one
basic
design
parameter
is
maximum
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2003
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hourly
heat
input
and
the
owner
or
operator
may
select
any
one
of
the
following
for
the
other
basic
design
parameter:

maximum
hourly
electric
output
rate,
maximum
steam
flow
rate,
or
maximum
hourly
fuel
consumption
rate.
When
establishing
fuel
consumption
specifications
in
terms
of
rate
or
volume,
the
minimum
fuel
quality
based
on
British
Thermal
Units
content
shall
be
used
for
determining
the
basic
design
parameter(
s)
for
a
coal­
fired
electric
utility
steam
generating
unit.

(
ii)
Except
as
provided
in
paragraph
(
h)(
2)(
iii)
of
this
section,
the
basic
design
parameter(
s)
for
any
process
unit
that
is
not
at
a
steam
electric
generating
facility
are
maximum
rate
of
fuel
input,
maximum
rate
of
material
input,

or
maximum
rate
of
product
output.
Combustion
process
units
will
typically
use
maximum
rate
of
fuel
input.
For
sources
having
multiple
end
products
and
raw
materials,
the
owner
or
operator
must
select
the
appropriate
parameter
for
the
dominant
emission
source
of
the
process
unit.

(
iii)
If
the
owner
or
operator
believes
the
basic
design
parameter(
s)
in
paragraphs
(
h)(
2)(
i)
and
(
ii)
of
this
section
is
not
appropriate
for
a
specific
industry
or
type
of
process
unit,
the
owner
or
operator
may
propose
to
the
reviewing
authority
an
alternative
basic
design
parameter(
s)
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2003
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for
the
source's
process
unit(
s).
If
the
reviewing
authority
approves
of
the
use
of
an
alternative
basic
design
parameter(
s),
the
reviewing
authority
shall
issue
a
permit
that
is
legally
enforceable
that
records
such
basic
design
parameter(
s)
and
requires
the
owner
or
operator
to
comply
with
such
parameter(
s).

(
iv)
The
magnitude
of
the
basic
design
parameter(
s)

specified
in
paragraphs
(
h)(
2)(
i)
and
(
ii)
of
this
section
shall
be
established
by
the
owner
or
operator
using
credible
information,
such
as
results
of
historic
maximum
capability
tests,
design
information
from
the
manufacturer,
or
engineering
calculations.

(
v)
If
design
information
is
not
available
for
a
process
unit,
then
the
owner
or
operator
shall
determine
the
process
unit's
basic
design
parameter(
s)
using
the
maximum
value
achieved
by
the
process
unit
in
the
five­
year
period
immediately
preceding
the
planned
activity.

(
vi)
Efficiency
of
a
process
unit
is
not
a
basic
design
parameter.

(
3)
The
replacement
activity
shall
not
cause
the
process
unit
to
exceed
any
emission
limitation
or
operational
limitation
(
that
has
the
effect
of
constraining
emissions)
that
applies
to
any
part
of
the
process
unit
and
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2003
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that
is
legally
enforceable.
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or
distribute
August
19,
2003
10
3.
Section
51.166
is
amended:

a.
By
revising
paragraph
(
b)(
2)(
iii)(
a).

b.
By
adding
paragraphs
(
b)(
53)
through
(
56),
and
paragraphs
(
y)
and
(
z).

The
revision
and
additions
read
as
follows:

§
51.166
Prevention
of
significant
deterioration
of
air
quality.

(
b)
*
*
*

(
2)
*
*
*

(
iii)
*
*
*

(
a)
Routine
maintenance,
repair
and
replacement.

Routine
maintenance,
repair
and
replacement
shall
include,

but
not
be
limited
to,
any
activity(
s)
that
meets
the
requirements
of
the
equipment
replacement
provisions
contained
in
paragraph
(
y)
of
this
section.

*
*
*
*
*

(
53)(
i)
In
general,
process
unit
means
any
collection
of
structures
and/
or
equipment
that
processes,
assembles,

applies,
blends,
or
otherwise
uses
material
inputs
to
produce
or
store
an
intermediate
or
a
completed
product.
A
single
stationary
source
may
contain
more
than
one
process
unit,
and
a
process
unit
may
contain
more
than
one
emissions
unit.
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2003
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(
ii)
Pollution
control
equipment
is
not
part
of
the
process
unit,
unless
it
serves
a
dual
function
as
both
process
and
control
equipment.
Administrative
and
warehousing
facilities
are
not
part
of
the
process
unit.

(
iii)
For
replacement
cost
purposes,
parts
shared
between
two
or
more
process
units
are
proportionately
allocated
based
on
capacity.

(
iv)
The
following
list
identifies
the
process
units
at
specific
categories
of
stationary
sources.

(
a)
For
a
steam
electric
generating
facility,
the
process
unit
consists
of
those
portions
of
the
plant
that
contribute
directly
to
the
production
of
electricity.
For
example,
at
a
pulverized
coal­
fired
facility,
the
process
unit
would
generally
be
the
combination
of
those
systems
from
the
coal
receiving
equipment
through
the
emission
stack
(
excluding
post­
combustion
pollution
controls),
including
the
coal
handling
equipment,
pulverizers
or
coal
crushers,

feedwater
heaters,
ash
handling,
boiler,
burners,

turbinegenerator
set,
air
preheaters,
and
operating
control
systems.
Each
separate
generating
unit
is
a
separate
process
unit.

(
b)
For
a
petroleum
refinery,
there
are
several
categories
of
process
units:
those
that
separate
and/
or
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2003
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distill
petroleum
feedstocks;
those
that
change
molecular
structures;
petroleum
treating
processes;
auxiliary
facilities,
such
as
steam
generators
and
hydrogen
production
units;
and
those
that
load,
unload,
blend
or
store
intermediate
or
completed
products.

(
c)
For
an
incinerator,
the
process
unit
would
consist
of
components
from
the
feed
pit
or
refuse
pit
to
the
stack,

including
conveyors,
combustion
devices,
heat
exchangers
and
steam
generators,
quench
tanks,
and
fans.

(
54)
Functionally
equivalent
part
means
a
part
that
serves
the
same
purpose
as
the
replaced
part.

(
55)
Fixed
capital
cost
means
the
capital
needed
to
provide
all
the
depreciable
components.
"
Depreciable
components"
refers
to
all
components
of
fixed
capital
cost
and
is
calculated
by
subtracting
land
and
working
capital
from
the
total
capital
investment,
as
defined
in
paragraph
(
b)(
56)
of
this
section.

(
56)
Total
capital
investment
means
the
sum
of
the
following:
all
costs
required
to
purchase
needed
process
equipment
(
purchased
equipment
costs);
the
costs
of
labor
and
materials
for
installing
that
equipment
(
direct
installation
costs);
the
costs
of
site
preparation
and
buildings;
other
costs
such
as
engineering,
construction
and
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2003
13
field
expenses,
fees
to
contractors,
startup
and
performance
tests,
and
contingencies
(
indirect
installation
costs);
land
for
the
process
equipment;
and
working
capital
for
the
process
equipment.

*
*
*
*
*

(
y)
Equipment
Replacement
Provision.
Routine
maintenance,
repair
and
replacement
includes,
but
is
not
limited
to,
the
replacement
of
any
part
of
a
process
unit
with
an
identical
or
functionally
equivalent
part(
s),
and
maintenance
or
repair
activity(
s)
if
it
is
associated
with
the
replacement
of
a
part(
s),
without
regard
to
other
considerations,
provided
that
all
of
the
requirements
in
paragraphs
(
y)(
1)
through
(
3)
of
this
section
are
met.

Repair
and
maintenance
activities
are
associated
with
the
replacement
of
a
part
of
the
process
unit
if
they
are
conducted
in
conjunction
with
the
replacement.

(
1)
Capital
Cost
threshold
for
Equipment
Replacement
(
i)
For
an
electric
utility
steam
generating
unit,
as
defined
in
51.166(
b)(
30),
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
ii)
For
a
process
unit
that
is
not
an
electric
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August
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2003
14
utility
steam
generating
unit
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
iii)
At
the
time
the
owner
or
operator
commences
the
replacement
activity,
the
owner
or
operator
shall
determine
the
replacement
value
of
the
process
unit;
and,
except
as
otherwise
allowed
under
paragraph
(
y)(
1)(
iv)
of
this
section,
the
replacement
value
of
the
process
unit
shall
be
based
on
an
estimate
of
the
fixed
capital
cost
of
constructing
a
new
process
unit,
or
on
the
current
appraised
value
of
the
process
unit.

(
iv)
As
an
alternative
to
paragraph
(
y)(
1)(
iii)
of
this
section
for
determining
the
replacement
value
of
a
process
unit,
an
owner
or
operator
may
choose
to
use
insurance
value
(
where
the
insurance
value
covers
only
complete
replacement),
investment
value
adjusted
for
inflation,
or
another
accounting
procedure
if
such
procedure
is
based
on
Generally
Accepted
Accounting
Principles,

provided
that
the
owner
or
operator
sends
a
notice
to
the
reviewing
authority
at
the
beginning
of
the
process
unit's
fiscal
year.
Unless
the
owner
or
operator
submits
a
notice
to
the
reviewing
authority,
then
paragraph
(
y)(
1)(
iii)
of
Internal
and
Deliberative
Draft
­
Do
not
quote,
cite,
copy,
or
distribute
August
19,
2003
15
this
section
will
be
used
to
establish
the
replacement
value
of
the
process
unit.
Once
the
owner
or
operator
submits
a
notice
to
use
an
alternative
accounting
procedure,
they
must
continue
to
use
that
procedure
for
the
entire
fiscal
year
for
that
process
unit.
In
subsequent
fiscal
years,
the
owner
or
operator
must
continue
to
use
this
selected
procedure
unless
an
another
notice
is
sent
to
the
reviewing
authority
selecting
another
procedure
consistent
with
this
paragraph
or
paragraph
(
y)(
1)(
iii)
of
this
section
at
the
beginning
of
such
fiscal
year.

(
2)
Basic
Design
Parameters.
The
replacement
does
not
change
the
basic
design
parameter(
s)
of
the
process
unit
to
which
the
activity
pertains.

(
i)
Except
as
provided
in
paragraph
(
y)(
2)(
iii)
of
this
section,
for
a
process
unit
at
a
steam
electric
generating
facility,
one
basic
design
parameter
is
maximum
hourly
heat
input
and
the
owner
or
operator
may
select
any
one
of
the
following
for
the
other
basic
design
parameter:

maximum
hourly
electric
output
rate,
maximum
steam
flow
rate,
or
maximum
hourly
fuel
consumption
rate.
When
establishing
fuel
consumption
specifications
in
terms
of
rate
or
volume,
the
minimum
fuel
quality
based
on
British
Thermal
Units
content
shall
be
used
for
determining
the
Internal
and
Deliberative
Draft
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or
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August
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2003
16
basic
design
parameter(
s)
for
a
coal­
fired
electric
utility
steam
generating
unit.

(
ii)
Except
as
provided
in
paragraph
(
y)(
2)(
iii)
of
this
section,
the
basic
design
parameter(
s)
for
any
process
unit
that
is
not
at
a
steam
electric
generating
facility
are
maximum
rate
of
fuel
input,
maximum
rate
of
material
input,

or
maximum
rate
of
product
output.
Combustion
process
units
will
typically
use
maximum
rate
of
fuel
input.
For
sources
having
multiple
end
products
and
raw
materials,
the
owner
or
operator
must
select
the
appropriate
parameter
for
the
dominant
emission
source
of
the
process
unit.

(
iii)
If
the
owner
or
operator
believes
the
basic
design
parameter(
s)
in
paragraphs
(
y)(
2)(
i)
and
(
ii)
of
this
section
is
not
appropriate
for
a
specific
industry
or
type
of
process
unit,
the
owner
or
operator
may
propose
to
the
reviewing
authority
an
alternative
basic
design
parameter(
s)

for
the
source's
process
unit(
s).
If
the
reviewing
authority
approves
of
the
use
of
an
alternative
basic
design
parameter(
s),
the
reviewing
authority
shall
issue
a
permit
that
is
legally
enforceable
that
records
such
basic
design
parameter(
s)
and
requires
the
owner
or
operator
to
comply
with
such
parameter(
s).

(
iv)
The
magnitude
of
the
basic
design
parameter(
s)
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August
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2003
17
specified
in
paragraphs
(
y)(
2)(
i)
and
(
ii)
of
this
section
shall
be
established
by
the
owner
or
operator
using
credible
information,
such
as
results
of
historic
maximum
capability
tests,
design
information
from
the
manufacturer,
or
engineering
calculations.

(
v)
If
design
information
is
not
available
for
a
process
unit,
then
the
owner
or
operator
shall
determine
the
process
unit's
basic
design
parameter(
s)
using
the
maximum
value
achieved
by
the
process
unit
in
the
five­
year
period
immediately
preceding
the
planned
activity.

(
vi)
Efficiency
of
a
process
unit
is
not
a
basic
design
parameter.

(
3)
The
replacement
activity
shall
not
cause
the
process
unit
to
exceed
any
emission
limitation
or
operational
limitation
(
that
has
the
effect
of
constraining
emissions)
that
applies
to
any
part
of
the
process
unit
and
that
is
legally
enforceable.
Internal
and
Deliberative
Draft
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or
distribute
August
19,
2003
18
PART
52
­
[
Amended]

1.
The
authority
citation
for
part
52
continues
to
read
as
follows:

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

Subpart
A
­
[
Amended]

2.
Section
52.21
is
amended:

a.
By
revising
paragraph
(
b)(
2)(
iii)(
a).

b.
By
adding
paragraphs
(
b)(
55)
through
(
58),
and
paragraphs
(
cc)
and
(
dd).

The
revision
and
additions
read
as
follows:

§
52.21
Prevention
of
significant
deterioration
of
air
quality.

(
b)
*
*
*

(
2)
*
*
*

(
iii)
*
*
*

(
a)
Routine
maintenance,
repair
and
replacement.

Routine
maintenance,
repair
and
replacement
shall
include,

but
not
be
limited
to,
any
activity(
s)
that
meets
the
requirements
of
the
equipment
replacement
provisions
contained
in
paragraph
(
cc)
of
this
section.

*
*
*
*
*

(
55)(
i)
In
general,
process
unit
means
any
collection
of
structures
and/
or
equipment
that
processes,
assembles,
Internal
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or
distribute
August
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2003
19
applies,
blends,
or
otherwise
uses
material
inputs
to
produce
or
store
an
intermediate
or
a
completed
product.
A
single
stationary
source
may
contain
more
than
one
process
unit,
and
a
process
unit
may
contain
more
than
one
emissions
unit.

(
ii)
Pollution
control
equipment
is
not
part
of
the
process
unit,
unless
it
serves
a
dual
function
as
both
process
and
control
equipment.
Administrative
and
warehousing
facilities
are
not
part
of
the
process
unit.

(
iii)
For
replacement
cost
purposes,
parts
shared
between
two
or
more
process
units
are
proportionately
allocated
based
on
capacity.

(
iv)
The
following
list
identifies
the
process
units
at
specific
categories
of
stationary
sources.

(
a)
For
a
steam
electric
generating
facility,
the
process
unit
consists
of
those
portions
of
the
plant
that
contribute
directly
to
the
production
of
electricity.
For
example,
at
a
pulverized
coal­
fired
facility,
the
process
unit
would
generally
be
the
combination
of
those
systems
from
the
coal
receiving
equipment
through
the
emission
stack
(
excluding
post­
combustion
pollution
controls),
including
the
coal
handling
equipment,
pulverizers
or
coal
crushers,

feedwater
heaters,
ash
handling,
boiler,
burners,
turbine­
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August
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2003
20
generator
set,
air
preheaters,
and
operating
control
systems.
Each
separate
generating
unit
is
a
separate
process
unit.

(
b)
For
a
petroleum
refinery,
there
are
several
categories
of
process
units:
those
that
separate
and/
or
distill
petroleum
feedstocks;
those
that
change
molecular
structures;
petroleum
treating
processes;
auxiliary
facilities,
such
as
steam
generators
and
hydrogen
production
units;
and
those
that
load,
unload,
blend
or
store
intermediate
or
completed
products.

(
c)
For
an
incinerator,
the
process
unit
would
consist
of
components
from
the
feed
pit
or
refuse
pit
to
the
stack,

including
conveyors,
combustion
devices,
heat
exchangers
and
steam
generators,
quench
tanks,
and
fans.

(
56)
Functionally
equivalent
part
means
a
part
that
serves
the
same
purpose
as
the
replaced
part.

(
57)
Fixed
capital
cost
means
the
capital
needed
to
provide
all
the
depreciable
components.
"
Depreciable
components"
refers
to
all
components
of
fixed
capital
cost
and
is
calculated
by
subtracting
land
and
working
capital
from
the
total
capital
investment,
as
defined
in
paragraph
(
b)(
58)
of
this
section.

(
58)
Total
capital
investment
means
the
sum
of
the
Internal
and
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or
distribute
August
19,
2003
21
following:
all
costs
required
to
purchase
needed
process
equipment
(
purchased
equipment
costs);
the
costs
of
labor
and
materials
for
installing
that
equipment
(
direct
installation
costs);
the
costs
of
site
preparation
and
buildings;
other
costs
such
as
engineering,
construction
and
field
expenses,
fees
to
contractors,
startup
and
performance
tests,
and
contingencies
(
indirect
installation
costs);
land
for
the
process
equipment;
and
working
capital
for
the
process
equipment.

*
*
*
*
*

(
cc)
Equipment
Replacement
Provision.
Routine
maintenance,
repair
and
replacement
includes,
but
is
not
limited
to,
the
replacement
of
any
part
of
a
process
unit
with
an
identical
or
functionally
equivalent
part(
s),
and
maintenance
or
repair
activity(
s)
if
it
is
associated
with
the
replacement
of
a
part(
s),
without
regard
to
other
considerations,
provided
that
all
of
the
requirements
in
paragraphs
(
cc)(
1)
through
(
3)
of
this
section
are
met.

Repair
and
maintenance
activities
are
associated
with
the
replacement
of
a
part
of
the
process
unit
if
they
are
conducted
in
conjunction
with
the
replacement.

(
1)
Capital
Cost
threshold
for
Equipment
Replacement
(
i)
For
an
electric
utility
steam
generating
unit,
as
Internal
and
Deliberative
Draft
­
Do
not
quote,
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copy,
or
distribute
August
19,
2003
22
defined
in
52.21(
b)(
31),
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
ii)
For
a
process
unit
that
is
not
an
electric
utility
steam
generating
unit
the
fixed
capital
cost
of
the
replacement
part(
s)
plus
the
cost
of
any
associated
maintenance
and
repair
activities
shall
not
exceed
20
percent
of
the
replacement
value
of
the
process
unit.

(
iii)
At
the
time
the
owner
or
operator
commences
the
replacement
activity,
the
owner
or
operator
shall
determine
the
replacement
value
of
the
process
unit;
and,
except
as
otherwise
allowed
under
paragraph
(
cc)(
1)(
iv)
of
this
section,
the
replacement
value
of
the
process
unit
shall
be
based
on
an
estimate
of
the
fixed
capital
cost
of
constructing
a
new
process
unit,
or
on
the
current
appraised
value
of
the
process
unit.

(
iv)
As
an
alternative
to
paragraph
(
cc)(
1)(
iii)
of
this
section
for
determining
the
replacement
value
of
a
process
unit,
an
owner
or
operator
may
choose
to
use
insurance
value
(
where
the
insurance
value
covers
only
complete
replacement),
investment
value
adjusted
for
inflation,
or
another
accounting
procedure
if
such
procedure
Internal
and
Deliberative
Draft
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Do
not
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copy,
or
distribute
August
19,
2003
23
is
based
on
Generally
Accepted
Accounting
Principles,

provided
that
the
owner
or
operator
sends
a
notice
to
the
reviewing
authority
at
the
beginning
of
the
process
unit's
fiscal
year.
Unless
the
owner
or
operator
submits
a
notice
to
the
reviewing
authority,
then
paragraph
(
cc)(
1)(
iii)
of
this
section
will
be
used
to
establish
the
replacement
value
of
the
process
unit.
Once
the
owner
or
operator
submits
a
notice
to
use
an
alternative
accounting
procedure,
they
must
continue
to
use
that
procedure
for
the
entire
fiscal
year
for
that
process
unit.
In
subsequent
fiscal
years,
the
owner
or
operator
must
continue
to
use
this
selected
procedure
unless
an
another
notice
is
sent
to
the
reviewing
authority
selecting
another
procedure
consistent
with
this
paragraph
or
paragraph
(
cc)(
1)(
iii)
of
this
section
at
the
beginning
of
such
fiscal
year.

(
2)
Basic
Design
Parameters.
The
replacement
does
not
change
the
basic
design
parameter(
s)
of
the
process
unit
to
which
the
activity
pertains.

(
i)
Except
as
provided
in
paragraph
(
cc)(
2)(
iii)
of
this
section,
for
a
process
unit
at
a
steam
electric
generating
facility,
one
basic
design
parameter
is
maximum
hourly
heat
input
and
the
owner
or
operator
may
select
any
one
of
the
following
for
the
other
basic
design
parameter:
Internal
and
Deliberative
Draft
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Do
not
quote,
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or
distribute
August
19,
2003
24
maximum
hourly
electric
output
rate,
maximum
steam
flow
rate,
or
maximum
hourly
fuel
consumption
rate.
When
establishing
fuel
consumption
specifications
in
terms
of
rate
or
volume,
the
minimum
fuel
quality
based
on
British
Thermal
Units
content
shall
be
used
for
determining
the
basic
design
parameter(
s)
for
a
coal­
fired
electric
utility
steam
generating
unit.

(
ii)
Except
as
provided
in
paragraph
(
cc)(
2)(
iii)
of
this
section,
the
basic
design
parameter(
s)
for
any
process
unit
that
is
not
at
a
steam
electric
generating
facility
are
maximum
rate
of
fuel
input,
maximum
rate
of
material
input,

or
maximum
rate
of
product
output.
Combustion
process
units
will
typically
use
maximum
rate
of
fuel
input.
For
sources
having
multiple
end
products
and
raw
materials,
the
owner
or
operator
must
select
the
appropriate
parameter
for
the
dominant
emission
source
of
the
process
unit.

(
iii)
If
the
owner
or
operator
believes
the
basic
design
parameter(
s)
in
paragraphs
(
cc)(
2)(
i)
and
(
ii)
of
this
section
is
not
appropriate
for
a
specific
industry
or
type
of
process
unit,
the
owner
or
operator
may
propose
to
the
reviewing
authority
an
alternative
basic
design
parameter(
s)
for
the
source's
process
unit(
s).
If
the
reviewing
authority
approves
of
the
use
of
an
alternative
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August
19,
2003
25
basic
design
parameter(
s),
the
reviewing
authority
shall
issue
a
permit
that
is
legally
enforceable
that
records
such
basic
design
parameter(
s)
and
requires
the
owner
or
operator
to
comply
with
such
parameter(
s).

(
iv)
The
magnitude
of
the
basic
design
parameter(
s)

specified
in
paragraphs
(
cc)(
2)(
i)
and
(
ii)
of
this
section
shall
be
established
by
the
owner
or
operator
using
credible
information,
such
as
results
of
historic
maximum
capability
tests,
design
information
from
the
manufacturer,
or
engineering
calculations.

(
v)
If
design
information
is
not
available
for
a
process
unit,
then
the
owner
or
operator
shall
determine
the
process
unit's
basic
design
parameter(
s)
using
the
maximum
value
achieved
by
the
process
unit
in
the
five­
year
period
immediately
preceding
the
planned
activity.

(
vi)
Efficiency
of
a
process
unit
is
not
a
basic
design
parameter.

(
3)
The
replacement
activity
shall
not
cause
the
process
unit
to
exceed
any
emission
limitation
or
operational
limitation
(
that
has
the
effect
of
constraining
emissions)
that
applies
to
any
part
of
the
process
unit
and
that
is
legally
enforceable.
