[Federal Register Volume 62, Number 14 (Wednesday, January 22, 1997)]
[Rules and Regulations]
[Pages 3215-3216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1421]


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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[CA 157-0022a; FRL-5669-1]


Clean Air Act Approval and Promulgation of Emission Reduction 
Credit Banking Provisions; Implementation Plan for California State 
Mojave Desert Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action on revisions to the 
California State Implementation Plan (SIP). The revisions concern rules 
from the Mojave Desert Air Quality Management District (MDAQMD or the 
District). This approval action will incorporate these rules into the 
federally approved SIP. The intended effect of approving these rules is 
to control air pollution in accordance with the requirements of the 
Clean Air Act, as amended in 1990 (CAA or the Act) with regard to new 
source review (NSR) in areas of MDAQMD that are not in attainment of 
the national ambient air quality standards (NAAQS). Thus, EPA is 
finalizing the approval of these revisions into the California SIP 
under provisions of the CAA regarding EPA action on SIP submittals, 
SIPs for national primary and secondary ambient air quality standards 
and plan requirements for nonattainment areas.

DATES: This action is effective on March 24, 1997 unless adverse or 
critical comments are received by February 21, 1997. If the effective 
date is delayed, a timely notice will be published in the Federal 
Register.

ADDRESSES: Copies of the rules and EPA's evaluation report for the 
rules are available for public inspection at EPA's Region IX office 
during normal business hours. Copies of the submitted rules are 
available for inspection at the following locations:

Permitting Office (A-5-1), Air Division, U.S. Environmental Protection 
Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 94105
Environmental Protection Agency, Air Docket (6102), 401 ``M'' Street, 
SW., Washington, DC 20460
California Air Resources Board, Stationary Source Division, Rule 
Evaluation Section, 2020 ``L'' Street, Sacramento, CA 95814
Mojave Desert AQMD, 15428 Civic Drive, Suite 200, Victorville, CA 
92392-2383.

FOR FURTHER INFORMATION CONTACT: Steve Ringer, Permitting Office (A-5-
1), Air Division, U.S. Environmental Protection Agency, Region IX, 75 
Hawthorne Street, San Francisco, CA 94105, Telephone: (415) 744-1260.

SUPPLEMENTARY INFORMATION:

Applicability

    The rules being approved into the California SIP include: rule 
1400, General; rule 1401, Definitions; rule 1402, Emission Reduction 
Credit Registry; and rule 1404, Emission Reduction Credit Calculation. 
These rules were adopted on June 28, 1995, and were submitted by the 
State of California to EPA on August 10, 1995 (rules 1400, 1401, 1402, 
and 1404 will hereafter be referred to as the ``submitted rules'').
    This document promulgates EPA's direct-final action for the 
submitted rules. These submitted rules were found to be complete on 
October 4, 1995, pursuant to EPA's completeness criteria that are set 
forth in 40 CFR part 51 Appendix V 1 and are being finalized for 
approval into the SIP. The submitted rules establish a system by which 
the District will calculate and bank reductions in emissions prior to 
use as offsets for future increases in emissions.
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    \1\  EPA adopted the completeness criteria on February 16, 1990 
(55 FR 5830) and, pursuant to section 110(k)(1)(A) of the CAA, 
revised the criteria on August 26, 1991 (56 FR 42216).
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Background

    The air quality planning requirements for nonattainment areas are 
set out in 40 CFR 51.165. The general requirements for the use of 
emission reductions are set out in EPA's Emissions Trading Policy 
Statement (ETPS), at 51 FR 43814, December 4, 1986.
    Section 173 of the Clean Air Act requires that major new sources 
and major modifications in nonattainment areas obtain offsetting 
emission reductions as a part of the preconstruction permitting 
process. The submitted rules create a system to provide for the banking 
and transfer of such reductions. As detailed in 40 CFR 51.165 and EPA's 
ETPS, offsets must reflect reductions in actual emissions, and they 
must be enforceable, permanent, quantifiable, and surplus of other 
regulatory requirements. For a description of how the submitted rules 
ensure that emission reductions meet these requirements, please refer 
to EPA's Technical Support Document (TSD) for this action.

EPA Evaluation and Action

    EPA has evaluated the submitted rules and has determined that they 
are consistent with the CAA, EPA regulations, and EPA policy. 
Therefore, MDAQMD rules 1400, 1401, 1402, and 1404 are being approved 
under section 110(k)(3) of the CAA as meeting the requirements of 
section 110(a) and part D.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future implementation 
plan. Each request for revision to the State implementation plan shall 
be considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    EPA is publishing this document without prior proposal because the 
Agency views this as a noncontroversial amendment and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. This action will be 
effective March 24, 1997, unless, by February 21, 1997, adverse or 
critical comments are received.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent document that will 
withdraw the final action. All public comments received will then be 
addressed in a subsequent final rule based on this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
this action. Any parties interested in commenting on this action should 
do so at this time. If no such comments are received, the public is 
advised that this action will be effective March 24, 1997.

Regulatory Process

    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., 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, 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 a population of less than 
50,000.
    SIP approvals under sections 110 and 301(a) 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

[[Page 3216]]

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 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 (S. 
Ct. 1976); 42 U.S.C. 7410 (a)(2).

Unfunded Mandates

    Under Sections 202, 203, and 205 of the Unfunded Mandates Reform 
Act of 1995 (``Unfunded Mandates Act''), signed into law on March 22, 
1995, EPA must undertake various actions in association with proposed 
or final rules that include a Federal mandate that may result in 
estimated costs of $100 million or more to the private sector or to 
State, local, or tribal governments in the aggregate.
    Through submission of this State implementation plan or plan 
revision, the State and any affected local or tribal governments have 
elected to adopt the program provided for under Part D of the Clean Air 
Act. These rules may bind State, local, and tribal governments to 
perform certain actions and also require the private sector to perform 
certain duties. The rules being approved by this action will impose no 
new requirements because affected sources are already subject to these 
regulations under State law. Therefore, no additional costs to State, 
local, or tribal governments or to the private sector result from this 
action. EPA has also determined that this final action does not include 
a mandate that may result in estimated costs of $100 million or more to 
State, local, or tribal governments in the aggregate or to the private 
sector.
    Under 5 U.S.C. 801(a)(1)(A) as added by the Small Business 
Regulatory Enforcement Fairness Act of 1996, EPA submitted a report 
containing this rule and other required information to the U.S. Senate, 
the U.S. House of Representatives and the Comptroller General of the 
General Accounting Office prior to publication of the rule in today's 
Federal Register. This rule is not a ``major rule'' as defined by 5 
U.S.C. 804(2).
    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 (OMB) has 
exempted this regulatory action from Executive Order 12866 review.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Note: Incorporation by reference of the State Implementation 
Plan for the State of California was approved by the Director of the 
Federal Register on July 1, 1982.

    Dated: December 8, 1996.
Felicia Marcus,
Regional Administrator.
    Part 52, chapter I, Title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

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

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

Subpart F--California

    2. Section 52.220 is amended by adding paragraph (c)(224)(i)(C) to 
read as follows:


Sec. 52.220  Identification of plan.

* * * * *
    (c) * * *
    (224) * * *
    (i) * * *
    (C) Mojave Desert Air Quality Management District.
    (1) Rules 1400, 1401, 1402, 1404. Adopted on June 28, 1995.
* * * * *
[FR Doc. 97-1421 Filed 1-21-97; 8:45 am]
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