[Federal Register Volume 60, Number 194 (Friday, October 6, 1995)]
[Proposed Rules]
[Pages 52352-52357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24940]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[LA-14-1-5941; FRL-5310-1]


Clean Air Act Approval and Promulgation of New Source Review; 
Implementation Plan Addressing New Source Review in Nonattainment 
Areas; Louisiana; Approval and Promulgation of Air Quality 
Implementation Plans; Louisiana Administrative Code (LAC), Title 33, 
Environmental Quality, Part III. Air, Chapter 5. Permit Procedures, 
Section 504. Nonattainment New Source Review (NSR) Procedures

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA proposes approval of the State Implementation Plan 
(SIP) revision, submitted by the State of Louisiana for the purpose of 
meeting requirements of the Clean Air Act (Act or CAA), as amended in 
1990, with regard to NSR in areas that have not attained the national 
ambient air quality standards (NAAQS).

DATES: Comments on this proposed action must be received in writing on 
or before November 6, 1995.

ADDRESSEES: Written copies on this action should be addressed to Ms. 
Jole C. Luehrs, Chief, Air Permits Section, at the EPA Regional Office 
listed below. Copies of the documents relevant to this proposed action 
are available for public inspection during normal business hours at the 
following locations. The interested persons wanting to examine these 
documents should make an appointment with the appropriate office at 
least 24 hours before the visiting day.
U.S. Environmental Protection Agency, Region 6, Multimedia Planning and 
Permitting Division (6PD), 1445 Ross Avenue, Suite 700, Dallas, Texas 
75202-2733
Louisiana Department of Environmental Quality, H. B. Garlock Building, 
7290 Bluebonnet Boulevard, Baton Rouge, Louisiana 70810.

FOR FURTHER INFORMATION CONTACT: Mr. Richard A. Barrett, Air Permits 
Section (6PD-R), Multimedia Planning and Permitting Division, U.S. EPA 
Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733, telephone (214) 
665-7227, facsimile (214) 665-2164.

SUPPLEMENTARY INFORMATION:

I. Background

    The air quality planning requirements for nonattainment new source 
review are set out in part D of Title I of the CAA, as amended in 1990. 
The EPA has issued a ``General Preamble'' describing the EPA's 
preliminary views on how the EPA intends to review SIPs and SIP 
revisions submitted under part D; including those State submittals 
containing nonattainment area NSR SIP requirements [see 57 FR 13498 
(April 16, 1992) and 57 FR 18070 (April 28, 1992)]. Because the EPA is 
describing its interpretations here only in broad terms, the reader 
should refer to the General Preamble for a more detailed discussion of 
the interpretations of part D advanced in this proposal and the 
supporting rationale. The EPA is currently developing a proposed rule 
to implement the changes under the 1990 Amendments in the NSR 
provisions in parts C and D of Title I of the Act. The EPA anticipates 
that the proposed rule will be published for public comment in 1995. If 
the EPA has not taken final action on States' NSR submittals by that 
time, the EPA will refer to the proposed rule as the most authoritative 
guidance available regarding the approvability of the submittals. The 
EPA expects to take final action to promulgate a final rule to 
implement the parts C and D changes sometime during 1996. Upon 
promulgation of those regulations, the EPA will review those NSR SIP 
submittals, on which it has taken final action, to determine whether 
additional SIP revisions are necessary.
    Prior to EPA approval of a State's NSR SIP submission, the State 
may continue permitting only in accordance with the new statutory 
requirements for permit applications completed after the relevant SIP 
submittal date. This policy was explained in transition guidance 
memoranda from John Seitz dated March 11, 1991, ``New Source Review 
(NSR) Program Transitional Guidance'', and September 3, 1992, ``New 
Source Review (NSR) Program Supplemental Transitional Guidance on 
Applicability of New Part D NSR Permit Requirements''.
    As explained in the memorandum of March 11, 1991, the EPA does not 
believe Congress intended to mandate the more stringent Title I NSR 
requirements during the time provided for SIP development. States were 
thus allowed to continue to permit consistent with requirements in 
their current NSR SIPs during that period, or apply 40 CFR part 51, 
Appendix S for newly designated areas that did not previously have NSR 
SIP requirements.
    The September 3, 1992, memorandum also addressed the situation 
where States did not submit the part D NSR SIP requirements or 
revisions by the applicable statutory deadline. For permit applications 
complete by the SIP submittal deadline, States may issue final permits 
under the prior NSR rules, 

[[Page 52353]]
assuming certain conditions in the September 3 memorandum are met. 
However, for applications completed after the SIP submittal deadline, 
the EPA will consider the source to be in compliance with the Act where 
the source obtains from the State a permit that is consistent with the 
substantive new NSR part D provisions in the Act. The EPA believes this 
guidance continues to apply to permitting pending final action on NSR 
SIP submittals.

II. Proposed Rulemaking Action

A. Procedural Background

    The Act requires States to observe certain procedural requirements 
in developing implementation plans and plan revisions for submission to 
the EPA. Section 110(a)(2) of the Act, 42 U.S.C. 7410(a)(2), provides 
that each implementation plan submitted by a State must be adopted 
after reasonable notice and public hearing.1 Section 110(l) of the 
Act similarly provides that each revision to an implementation plan 
submitted by a State under the Act must be adopted by such State after 
reasonable notice and public hearing.

    \1\  Section 172(c)(7) of the Act provides that plan provisions 
for nonattainment areas shall meet the applicable provisions of 
Section 110(a)(2).
---------------------------------------------------------------------------

    After adequate public notice, the State of Louisiana held a public 
hearing, on December 30, 1992, to entertain public comment on the NSR 
implementation plan, which replaced the emergency rules submitted to 
the EPA on November 10, 1992. Following the public hearing, the plan 
was adopted by the State on February 20, 1993, and submitted to the EPA 
on March 3, 1993, as a proposed revision to the SIP. The State 
submitted, to the EPA, revisions for the Louisiana SIP to implement the 
NSR requirements of the CAA in nonattainment areas in Louisiana. 
Louisiana made the SIP revision to LAC Title 33, Part III, Chapter 5. 
Permit Procedures, by the addition of section 504. Nonattainment New 
Source Review Procedures. The SIP revision was reviewed by the EPA to 
determine administrative completeness shortly after its submittal. The 
completeness review was based upon the criteria as set out at 40 CFR 
part 51 Appendix V. The submittal was found to be complete on July 10, 
1993; and a letter dated August 3, 1993, was forwarded to the Governor 
indicating the completeness of the submittal and the next steps to be 
taken in the review process. Prior to the EPA acting on these 
revisions, the State submitted a notice of adoption and final rule on 
Regulation LAC 33:III.Chapter 5, which included and amended section 
504, on November 15, 1993, in order to meet the requirements mandated 
by sections 173 and 182 of the Act. This proposed rule applies to, and 
contains an evaluation of, section 504.
    In this action, the EPA proposes approval of the Louisiana 
nonattainment NSR SIP rules identified in this notice, and invites 
public comment on the action. Those sections submitted to the EPA not 
included in the revisions specifically addressed in this proposal will 
be the subject of a future rulemaking. In this rulemaking action on the 
Louisiana nonattainment NSR SIP, the EPA is proposing to apply its 
interpretations, taking into consideration the specific factual issues 
presented. Thus, the EPA will consider any timely submitted comments 
prior to the EPA's taking final action on this proposed rule.

B. General Nonattainment NSR Requirements

    The statutory requirements for nonattainment NSR SIPs and 
permitting are found at sections 172 and 173.
    The Act requires all States to have submitted, at a minimum, the 
following nonattainment NSR provisions by November 15, 1992:
    1. Provisions to assure that calculation of emissions offsets, as 
required by section 173(a)(1)(A), are based on the same emissions 
baseline used in the demonstration of reasonable further progress. 
Louisiana has established provisions to satisfy this section pursuant 
to sections 504.F.4 and 504.F.5.
    2. Provisions to allow, according to section 173(c)(1), offsets to 
be obtained in another nonattainment area if: the area in which the 
offsets are obtained has an equal or higher nonattainment 
classification; and emissions from the nonattainment area, in which the 
offsets are obtained, contribute to a National Ambient Air Quality 
Standards (NAAQS) violation, in the area in which the source would 
construct. Louisiana has established provisions to satisfy this 
section, pursuant to section 504.F.9.
    3. Provisions to assure, according to section 173(c)(1), that any 
emissions offsets, obtained in conjunction with the issuance of a 
permit to a new or modified source, must be in effect and enforceable 
by the time the new or modified source is to commence operation. 
Louisiana has established provisions to satisfy this section pursuant 
to section 504.F.3.
    4. Provisions to assure that emissions increases, from new or 
modified major stationary sources, are offset by real reductions in 
actual emissions, as required by section 173(c)(1). Louisiana has 
established provisions to satisfy this section pursuant to sections 
504.D.3 and 504.F.7.
    5. Provisions, according to section 173(c)(2), to prevent emissions 
reductions, otherwise required by the Act, from being credited for 
purposes of satisfying the part D offset requirements. Louisiana has 
established provisions to satisfy this section pursuant to sections 
504.F.5. and 504.F.10.
    6. Provisions, according to section 173(a)(5), that, as a 
prerequisite to issuing any part D permit, require an analysis of 
alternative sites, sizes, production processes, and environmental 
control techniques for proposed sources that demonstrates that the 
benefits of the proposed source significantly outweigh the 
environmental and social costs imposed as a result of its location, 
construction, or modification. Louisiana has established provisions to 
satisfy this section pursuant to section 504.D.6.
    7. Provisions, according to section 173(e), that allow any existing 
or modified source, that tests rocket engines or motors, to use 
alternative or innovative means to offset emissions increases from 
firing and related cleaning, if four conditions are met: (a) the 
proposed modification is for expansion of a facility already permitted 
for such purposes; (b) the source has used all available offsets and 
all reasonable means to obtain offsets and sufficient offsets are not 
available; (c) the source has obtained a written finding by the 
appropriate, sponsoring Federal agency that the testing is essential to 
national security; and (d) the source will comply with an alternative 
measure designed to offset any emissions increases not directly offset 
by the source.
    In lieu of imposing any alternative offset measures, the permitting 
authority may impose an emission offset amounting to no more than 1.5 
times the average cost of stationary control measures adopted in that 
area during the previous three years. Louisiana has established 
provisions to satisfy this section pursuant to section 504.D.7.
    8. Provisions, according to section 173(a)(3), to assure that 
owners or operators, of each proposed new or modified major stationary 
source, demonstrate that all other major stationary sources, under the 
same ownership in the State, are in compliance with the Act. Louisiana 
has established provisions to satisfy this section pursuant to section 
504.D.1.
    9. Provisions, according to section 173(a)(2), to assure that 
permits for new and modified major stationary sources to construct and 
operate may be issued 

[[Page 52354]]
if the proposed source is required to comply with the lowest achievable 
emission rate. Louisiana has established provisions to satisfy this 
requirement pursuant to section 504.D.2.
    10. Additionally, the State must assure that no interpollutant 
trading is allowed as defined in 40 CFR part 51, Appendix S, section 
IV, condition 3. Louisiana has established provisions to satisfy this 
requirement pursuant to section 504.F.1.
    11. The public notice and participation requirements, previously 
located in Section 504, have now been placed in LAC 33:III. Chapter 5. 
Section 531, which will be acted on by the EPA in a future rulemaking 
action. These requirements were located in the March 3, 1993, submittal 
and were subsequently moved in the November 15, 1993, submittal to 
Section 531. Public participation requirements have previously been 
approved in the SIP.

C. Ozone

    The general nonattainment NSR requirements are found in sections 
172 and 173 of the Act and must be met by all nonattainment areas. 
Requirements for ozone that supplement or supersede these requirements 
are found in subpart 2 of part D. In addition, subpart 2 includes 
section 182(f), which states that requirements, for major stationary 
sources of volatile organic compounds (VOC), shall apply to major 
stationary sources of oxides of nitrogen (NOX) unless the 
Administrator makes certain determinations related to the benefits or 
contribution of NOX control to air quality, ozone attainment, or 
ozone air quality. States were required under section 182(a)(2)(C) to 
adopt new NSR rules for ozone nonattainment areas by November 15, 1992.
1. Marginal Ozone Nonattainment Areas
    For marginal ozone nonattainment areas, States must submit the 
following NSR provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tons per year (tpy) VOC and, presumptively, the 
100 tpy NOX threshold for determination of whether a source is 
subject to part D NSR requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets under section 182(a)(4) at a ratio of at least 
1.1 to 1 in order to obtain an NSR permit.
2. Moderate Ozone Nonattainment Areas
    For moderate ozone nonattainment areas, States must submit the 
following NSR provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy VOC and, presumptively, the 100 tpy NOx 
threshold for determination of whether a source is subject to part D 
NSR requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets under section 182(a)(4) at a ratio of at least 
1.15 to 1 in order to obtain an NSR permit.
3. Serious Ozone Nonattainment Areas
    For serious ozone nonattainment areas, States must submit the 
following NSR provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 182(c) 50 tpy VOC and, presumptively, the 50 tpy NOX 
threshold for determination of whether a source is subject to part D 
requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets under section 182(c)(10) at a ratio of at least 
1.2 to 1 in order to obtain an NSR permit.
    c. Provisions to implement section 182(c)(6) of the Act such that 
any proposed emissions increase is subject to the 25-ton de minimis 
test over a five year period.
4. Severe Ozone Nonattainment Areas
    For severe ozone nonattainment areas, States must submit the 
following NSR provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 182(d) 25 tpy VOC and, presumptively, the 25 tpy NOX 
threshold for determination of whether a source is subject to part D 
requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets at a ratio [under section 182(d)(2)] of at least 
1.3 to 1 in order to obtain an NSR permit, unless the SIP requires all 
existing major sources in the nonattainment area to use Best Available 
Control Technology, in which case, the offset ratio is at least 1.2 to 
1.
    c. Provisions to implement section 182(c)(6) of the Act such that 
any proposed emissions increase is subject to the 25-ton de minimis 
test over a five year period.
    Louisiana has established major source thresholds and offset ratios 
for VOC and included provisions for NOX major stationary sources 
as follows:

------------------------------------------------------------------------
       Area           Major source      Offset ratio                    
  classification       threshold           minimum       NOX provisions 
------------------------------------------------------------------------
Marginal.........  100 tpy..........  1.10 to 1.......  See paragraph   
                                                         below.         
Moderate.........  100 tpy..........  1.15 to 1.......  Identical to    
                                                         VOC.           
Serious..........  50 tpy...........  1.20 to 1.......  Identical to    
                                                         VOC, see       
                                                         paragraph      
                                                         below.         
Severe...........  25 tpy...........  1.30 to 1.......  Identical to    
                                                         VOC.           
Extreme..........  Not applicable...  Not applicable..  Not applicable. 
------------------------------------------------------------------------

    The EPA is currently evaluating a petition for exemption from 
NOX requirements pursuant to section 182(f), received on October 
28, 1994, from the State of Louisiana. The petition regarding the 
NOX offset requirement for the marginal ozone nonattainment area 
of Calcasieu Parish, Louisiana, will be the subject of future EPA 
action. If this petition is approved, the EPA intends to publish final 
approval of the NSR SIP. If the petition is not approved, the EPA will 
readdress the NSR SIP to require NOX offsets in the marginal ozone 
nonattainment areas of Louisiana.
    The EPA has proposed approval of a petition for exemption from 
NOX requirements pursuant to section 182(f), received from the 
State of Louisiana on November 17, 1994, for the serious ozone 
nonattainment area of Baton Rouge, and has proposed its approval on 
August 18, 1995 (see 60 FR 43100). If approved, NOX offsets will 
not be required in that area.
    Louisiana has established all of the above requirements for all 
other ozone nonattainment areas.
    Additionally, for nonclassifiable (transitional or incomplete data) 
ozone nonattainment areas, State rules for the marginal area 
classification apply. For further information on nonclassifiable areas 
see, ``General Preamble'' 57 Federal Register 55624 (April 16, 1992), 
and the ``NOX supplement to the General Preamble'' 57 FR 13523 
(November 25, 1993). 

[[Page 52355]]

    In addition, Louisiana's plan submittal reflects appropriate 
modification provisions, including a de minimis level of 25 tons.

D. Carbon Monoxide (CO)

    The general part D NSR permit requirements apply in CO 
nonattainment areas, and are supplemented by the CO requirements in 
subpart 3 of part D.
    1. All moderate CO nonattainment areas, with a design value of 12.7 
parts per million or less, must submit proposed part D NSR programs no 
later than November 15, 1993. Such programs must have the following 
provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy CO threshold for determination of whether a 
source is subject to part D requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets under section 173(a)(1)(A) at a ratio of at 
least 1 to 1 in order to obtain an NSR permit.
    2. All States, with moderate CO nonattainment areas with a design 
value greater than 12.7 ppm, were required to submit proposed part D 
NSR programs by November 15, 1992. Such programs must have the 
following provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the 100 tpy CO threshold for determination of whether a source is 
subject to part D requirements as a major source.
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets at a ratio of at least 1 to 1 in order to obtain 
an NSR permit.
    3. Pursuant to section 187(c)(1), 42 U.S.C. 7512a(c)(1), all States 
with serious CO nonattainment areas, in which stationary sources 
contribute significantly to CO levels (as determined under rules issued 
by the Administrator; i.e., according to guidance issued in a May 13, 
1991, memorandum ``Guidance for Determining Significant Stationary 
Sources for Carbon Monoxide'' from William Laxton, Director, Technical 
Support Division to Regional Air Division Directors) were required to 
submit part D NSR programs by November 15, 1992. Such programs must 
have the following provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the 50 tpy CO threshold for determination of whether a source is 
subject to part D requirements as a major source.
    b. Provisions under section 173(a)(1)(A) to ensure that new or 
modified major stationary sources obtain offsets at a ratio of at least 
1 to 1 in order to obtain an NSR permit.
    4. All States with nonclassifiable CO nonattainment areas must 
submit revised part D programs by November 15, 1993.
    Louisiana has established a major source threshold of 100 tpy, and 
a minimum offset ratio of greater than 1.00 to 1 for moderate CO 
nonattainment areas. Louisiana has established a major source threshold 
of 50 tpy, and a minimum offset ratio of greater than 1.00 to 1 for 
serious nonattainment areas.
    Louisiana has no areas designated as nonattainment for CO at this 
time.

E. Particulate Matter Less Than 10 Micrometers In Diameter (PM-10)

    Pursuant to section 189(a)(2) 42 U.S.C. 7513a(a)(2), all States, 
with a PM-10 nonattainment area classified as moderate, were required 
to submit an NSR permit program SIP revision by June 30, 1992, or 18 
months after the designation of such an area.
1. Moderate Areas
    PM-10 NSR programs must have the following provisions:
    a. Definition of the term ``major stationary source'' that reflects 
thresholds in section 302(j) of 100 tpy for PM-10 and, presumptively, 
100 tpy for each PM-10 precursor for determination of whether a source 
is subject to part D requirements as a major source.
    b. Provisions under section 173(a)(1)(A) to ensure that new or 
modified major stationary sources obtain emission offsets at an offset 
ratio of at least 1 to 1.
    c. Under section 189(e), requirements applicable to major sources 
of PM-10 are also applicable to major sources of PM-10 precursors, 
except where the Administrator determines that such sources do not 
contribute significantly to PM-10 levels which exceed the standards in 
the area. The EPA generally considers sulfur dioxide, nitrogen oxides, 
or volatile organic compounds to be PM-10 precursors for NSR purposes 
in certain areas. Further guidance on making such determinations has 
been issued at 57 Federal Register 13541 (April 16, 1992) and 57 
Federal Register 18070 (April 28, 1992).
    d. Provisions to ensure that the significance threshold for a 
modification to be major, and therefore subject to the section 173 
permit requirements, is 15 tpy for PM-10 and, presumptively, 15 tpy for 
each PM-10 precursor.
2. Serious Areas
    PM-10 NSR programs must have the following provisions:
    a. Definition of the term ``major stationary source'' that reflects 
the section 189(b)(3) thresholds of 70 tpy for PM-10 and 70 tpy for 
each PM-10 precursor (in certain cases) for determination of whether a 
source is subject to part D requirements as a major source.
    b. Provisions under section 173(a)(1)(A) to ensure that new or 
modified major stationary sources obtain an offset ratio of at least 1 
to 1.
    c. Under section 189(e), requirements applicable to major sources 
of PM-10 are also applicable to major sources of PM-10 precursors, 
except where the Administrator determines that such sources do not 
contribute significantly to PM-10 levels which exceed the standards in 
the area.
    d. Provisions to ensure that the significance threshold for a 
modification to be major, and therefore subject to the section 173 
permit requirements, is 15 tpy for PM-10 and, presumptively 15 tpy for 
each PM-10 precursor.
    Louisiana has established major source thresholds, offset ratios, 
modification significance levels, and PM-10 precursor provisions as 
follows:

----------------------------------------------------------------------------------------------------------------
                            Major source                                                                        
 Area classification         threshold         Offset ratio minimum    Significance level   Precursor provisions
----------------------------------------------------------------------------------------------------------------
Moderate.............  100 tpy..............  Greater than 1 to 1..  15 tpy...............  See paragraph below.
Serious..............  50 tpy...............  Greater than 1 to 1..  15 tpy...............  See paragraph below.
----------------------------------------------------------------------------------------------------------------

    Since Louisiana has no areas designated as nonattainment for PM-10 
at this time, the EPA is proposing to approve the PM-10 NSR provisions 
for the limited purpose of strengthening the SIP and not for satisfying 
the part D NSR requirements for PM-10. If an area is designated 
nonattainment for PM-10, then the State would be required to submit 
provisions for PM-10 precursors unless it has sought and obtained a 
determination by the EPA under section 189(e). 

[[Page 52356]]


F. Sulfur Dioxide (SO2)

    States with SO2 nonattainment areas were required to submit 
NSR implementation plans by May 15, 1992. States with areas that are 
designated or redesignated as nonattainment after the Amendments have 
18 months to submit such plans. NSR implementation plans must contain 
the following provisions with regard to SO2:
    1. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy SO2 threshold for determination of 
whether a source is subject to part D requirements as a major source.
    2. Provisions under section 173(a)(1)(A) to ensure that new or 
modified major stationary sources obtain SO2 offsets at a ratio of 
at least 1 to 1 in order to obtain an NSR permit.
    3. Provisions to ensure that the significance threshold for a 
modification to be major, and therefore subject to the section 173 
permit requirements, is 40 tpy of SO2.
    Louisiana has established a major source threshold of 100 tpy, a 
minimum offset ratio of greater than 1 to 1, and a modification 
significance level of 40 tpy.
    Louisiana has no areas designated as nonattainment for SO2 at 
this time.

G. Lead

    Generally, the date, by which a plan must be submitted for an area, 
is triggered by the area's nonattainment designation. For areas 
designated nonattainment for the primary lead NAAQS in effect at 
enactment of the 1990 Amendments; under section 171(b), States must 
submit SIPs which meet the applicable requirements of part D within 18 
months of the date of enactment of the 1990 Amendments. States with 
lead nonattainment areas are required to submit NSR implementation 
plans which must contain the following provisions:
    1. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy lead threshold for determination of whether 
a source is subject to part D requirements as a major source.
    2. Provisions under section 173(a)(1)(A) to ensure that new or 
modified major stationary sources of lead obtain lead offsets at a 
ratio of at least 1 to 1 in order to obtain an NSR permit.
    3. Provisions to ensure that the significance threshold for a 
modification to be major, and therefore subject to the section 173 
permit requirements, is 0.6 tpy of lead.
    Louisiana has established a major source threshold of 100 tpy, a 
minimum offset ratio of greater than 1 to 1, and a modification 
significance level of 0.6 tpy.
    Louisiana has no areas designated as nonattainment for Lead at this 
time.

III. Implications of this Action

    The EPA is proposing approval of the plan revisions submitted on 
March 3, 1993, as amended on November 15, 1993, regarding NSR, subject 
to EPA approval of the NOX exemption request for the Calcasieu 
Parish ozone nonattainment area. The State of Louisiana has submitted a 
complete plan to implement the NSR provisions of part D. Assuming 
approval of the NOX exemption request, each of the program 
elements mentioned above were properly addressed, with the exception of 
PM-10 precursor requirements. Since Louisiana has no areas designated 
as nonattainment for PM-10 at this time, the EPA is proposing to 
approve the PM-10 NSR provisions for the limited purpose of 
strengthening the SIP and not for satisfying the part D NSR 
requirements for PM-10. If an area is designated nonattainment for PM-
10, then the State would be required to submit provisions for PM-10 
precursors unless it has sought and obtained a determination by the EPA 
under section 189(e).
    Those sections submitted to the EPA, not included in the revisions 
specifically addressed in this proposal, will be the subject of a 
future rulemaking. If the EPA does not approve the NOX exemption 
request for Calcasieu Parish, there will not be final approval of the 
NSR SIP until rule changes requiring NOX offsets in marginal areas 
are submitted by the State.
    Louisiana LAC 33:III.Chapter 5.section 504 is approvable under the 
requirements for nonattainment area permitting regulations as outlined 
in 40 CFR part 51 and in part D. These revisions incorporate 
requirements of the CAA for the construction and operation of new and 
modified major stationary sources of air pollutants. However, the EPA 
is currently in the process of revising its regulations, in accordance 
with the CAA, and expects to propose an amended 40 CFR 51.165 within 
the near future. These revisions to 40 CFR 51.165 will reflect the new 
nonattainment NSR provisions added by the CAA in part D, subparts 1 and 
2. Once the EPA promulgates final nonattainment NSR rules pursuant to 
the CAA, the State of Louisiana will have to review LAC 33:III.Chapter 
5.section 504 against the requirements found in the final promulgated 
regulations and submit any additionally required revisions to the EPA 
for approval.

IV. Request for Public Comments

    The EPA is requesting comments on all aspects of the requested SIP 
revision and the EPA's proposed rulemaking action. Comments received by 
date indicated above will be considered in the development of the EPA's 
final rule.

V. Executive Order (EO) 12866

    This action has been classified as a Table 3 action for signature 
by the Regional Administrator under the procedures published in the 
Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a 
July 10, 1995, memorandum from Mary Nichols, Assistant Administrator 
for Air and Radiation. The Office of Management and Budget has exempted 
this regulatory action from EO 12866 review.

VI. Regulatory Flexibility

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., the EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities (5 U.S.C. 603 and 604). 
Alternatively, the EPA may certify that the rule will not have a 
significant impact on a substantial number of small entities. Small 
entities include small businesses, small not-for-profit enterprises, 
and government entities with jurisdiction over populations of less than 
50,000.
    SIP approvals, under section 110 and subchapter I, part D, of the 
CAA, do not create any new requirements, but simply approve 
requirements that the State is already imposing. Therefore, because the 
Federal SIP-approval does not impose any new requirements, I certify 
that it does not have a significant impact on any small entities 
affected. Moreover, due to the nature of the Federal-State relationship 
under the CAA, preparation of a regulatory flexibility analysis would 
constitute Federal inquiry into the economic reasonableness of State 
action. The CAA forbids the EPA to base its actions concerning SIPs on 
such grounds (Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 
(1976); 42 U.S.C. 7410(a)(2)).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals, for 
the appropriate circuit, by December 5, 1995. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for the purposes of judicial review, nor does 
it extend the time within which a petition for judicial review may be 
filed, and 

[[Page 52357]]
shall not postpone the effectiveness of such rule or action. This 
action may not be challenged later in proceedings to enforce its 
requirements. See section 307(b)(2).

VII. Unfunded Mandates

    Under section 202 of the Unfunded Mandates Reform Act of 1995 
(``Unfunded Mandates Act''), signed into law on March 22, 1995, the EPA 
must prepare a budgetary impact statement to accompany any proposed or 
final rule that includes a Federal mandate that may result in estimated 
costs to State, local, or tribal governments in the aggregate; or to 
the private sector, of $100 million or more. Under section 205, the EPA 
must select the most cost-effective and least burdensome alternative 
that achieves the objectives of the rule and is consistent with 
statutory requirements. Section 203 requires the EPA to establish a 
plan for informing and advising any small governments that may be 
significantly or uniquely impacted by the rule.
    The EPA has determined that this proposed action does not include a 
Federal mandate that may result in estimated costs of $100 million or 
more to either State, local, or tribal governments in the aggregate, or 
to the private sector. This Federal action approves pre-existing 
requirements under State or local law, and imposes no new Federal 
requirements. Accordingly, no additional costs to State, local, or 
tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Intergovernmental relations, 
Lead, New source review, Nitrogen dioxide, Ozone, Particulate matter, 
Reporting and recordkeeping requirements, Sulfur dioxide, Volatile 
organic compounds.

    Authority: 42 U.S.C. 7401-7671q.

    Dated: September 29, 1995.
Samuel Coleman,
Acting Regional Administrator (6RA).
[FR Doc. 95-24940 Filed 10-5-95; 8:45 am]
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