[Federal Register Volume 66, Number 220 (Wednesday, November 14, 2001)]
[Rules and Regulations]
[Pages 57230-57247]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-27584]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[TX-134-8-7532; FRL-7092-7]


Approval and Promulgation of Implementation Plans; Texas; Control 
of Emissions of Nitrogen Oxides From Stationary Sources in the Houston/
Galveston Ozone Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The EPA is approving revisions to the Texas State 
Implementation Plan (SIP). This rulemaking covers five separate 
actions. First, we are approving revisions to the Texas Nitrogen Oxides 
(NOX) rules for point sources of NOX in the 
Houston/Galveston (H/GA) ozone nonattainment area of Texas as submitted 
to us by the State on December 22, 2000. These new limits for point 
sources of NOX in the H/GA will contribute to attainment of 
the 1-hour ozone National Ambient Air Quality Standard (NAAQS) in the 
H/GA 1-hour ozone nonattainment area. Second, we are approving an 
exclusion, from the federally-approved SIP, of carbon monoxide (CO) and 
ammonia emission limits ancillary to the NOX standards for 
post combustion controls found in Title 30 of the Texas Administrative 
Code (TAC), Chapter 117. Third, we are approving, by parallel 
processing, revisions to the Texas NOX rules for stationary 
diesel engines or stationary dual-fuel engines in the H/GA 1-hour ozone 
nonattainment area. Fourth, we are approving, through parallel 
processing, revisions made to the Texas SIP concerning compliance 
schedules for utility electric generation and Industrial, Commercial, 
and Institutional (ICI) sources in the H/GA area. Fifth, we are 
approving, through parallel processing, revisions made to the Texas SIP 
concerning lean-burn and rich-burn engines. The EPA is approving the 
SIP revisions described as actions number one, two, three, four, and 
five to regulate emissions of NOX as meeting the 
requirements of the Federal Clean Air Act (the Act).

DATES: This rule will be effective on December 14, 2001.

ADDRESSES: Copies of the documents about this action including the 
Technical Support Document, are available for public inspection during 
normal business hours at the following locations. Persons interested in 
examining these documents should make an appointment with the 
appropriate office at least 24 hours before the visiting day.
    Environmental Protection Agency, Region 6, 1445 Ross Avenue, Suite 
700, Dallas, Texas 75202-2733.
    Texas Natural Resource Conservation Commission, Office of Air 
Quality, 12124 Park 35 Circle, Austin, Texas 78753.

FOR FURTHER INFORMATION CONTACT: Mr. Alan Shar, Air Planning Section 
(6PD-L), EPA Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733, 
telephone (214) 665-6691, and [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

1. What actions are we taking in this document?
2. Did we receive written comments on these proposed actions?
3. When did the public comment period for our proposal on these 
actions expire?
4. Who submitted comments to us?
5. How do we respond to the submitted written comments?
6. What are the NOX emission specifications for point 
sources of NOX, in the H/GA area based upon the December 
22, 2000, SIP revision, that we are approving?
7. What is the compliance schedule for point sources of 
NOX, in the H/GA area based upon the December 22, 2000, 
SIP revision, that we are approving?
8. What are the NOX emissions reductions for point 
sources of NOX, in the H/GA area based upon the December 
22, 2000, SIP revision, that we are approving?
9. What are the NOX emissions specifications, for 
stationary diesel engines or stationary dual-fuel engines, that we 
are approving?
10. What is the compliance schedule date for stationary diesel 
engines in the H/GA area based on the proposed May 30, 2001, SIP 
revision, that we are approving?
11. What are the NOX emissions reductions for stationary 
diesel engines in the H/GA area based on the May 30, 2001, SIP 
revision, that we are approving?
12. What are the NOX emissions specifications for point 
sources of NOX in the H/GA area based on the May 30, 
2001, SIP revision, that we are approving?
13. What is the compliance schedule for utility electric generation 
point sources of NOX in the H/GA area based on the May 
30, 2001, SIP revision, that we are approving?
14. What are the NOX emissions specifications in the ICI 
source category for attainment demonstration within the H/GA area, 
based on the May 30, 2001, SIP revision, that we are approving?
15. What is the compliance schedule for affected ICI sources of 
NOX in the H/GA area based on the May 30, 2001, SIP 
revision that we are approving?
16. What are the NOX emissions reductions based on the 
May 30, 2001, SIP revision, that we are approving?
17. When did the State adopt the final version of the rule for point 
sources of NOX in the H/GA area?
18. Is there a substantial difference between the State's proposed 
and final versions of the rule for point sources of NOX 
in the H/GA area?
19. What are NOX?
20. What is a nonattainment area?
21. What are definitions of major sources for NOX?
22. What is a State Implementation Plan?
23. What is the Federal approval process for a SIP?
24. What areas in Texas will be affected by the stationary diesel 
engines or stationary dual-fuel engines rule, that we are approving 
based on the May 30, 2001, SIP revision?
25. What areas in Texas will be affected by the rule for point 
sources of NOX, that we are approving based on the May 
30, 2001, SIP revision?

    Throughout this document ``we,'' ``us,'' and ``our'' means EPA.

1. What Actions Are We Taking in This Document?

    On December 22, 2000, George W. Bush, then Governor of Texas, 
submitted rule revisions to 30 TAC, Chapter 117, ``Control of Air 
Pollution From Nitrogen Compounds,'' as a revision to the SIP for point 
sources in the H/GA. The December 22, 2000, submittal required an 89 
percent reduction in emissions of NOX from point sources in 
the H/GA area.
    As part of a negotiated settlement in the case of BCCA Appeal Group 
v. Texas Natural Resource Conservation Commission, No. GN1-00210 (250th 
Dist. Ct. Travis County)(complaint filed on January 19, 2001) reached 
on May 18, 2001, TNRCC issued a proposal to revise 30 TAC, Chapter 117 
on May 30, 2001. On June 15, 2001, Texas Governor Rick Perry submitted 
a request letter to us asking to process the May 30, 2001, proposed 
rule revisions to 30 TAC, Chapter 117, as a revision to the SIP from 
point sources in the H/GA, through parallel processing.
    On July 12, 2001 (66 FR 36532), we published a notice of proposed 
approval of the December 22, 2000 rules for point sources of 
NOX in the H/GA. We also proposed to approve, through 
parallel processing, revisions to the NOX rules for H/GA 
concerning (a) stationary diesel engines or stationary dual-fuel 
engines, (b) compliance schedules for utility electric generation and 
ICI sources and (c) lean-burn and rich burn engines. We noted, but did 
not propose

[[Page 57231]]

for approval, alternate NOX emissions reductions and 
specifications contained in the May 30, 2001 proposed changes to the 
Texas rules.
    On September 26, 2001, the TNRCC adopted as final rules amendments 
to 30 TAC, Chapter 117 proposed on May 30, 2001, with certain 
revisions.
    On October 4, 2001, Texas Governor Rick Perry submitted a request 
letter to us asking us to process the September 26, 2001, final rule 
amendments to 30 TAC, Chapter 117, as a revision to the SIP for point 
sources in the H/GA area.
    The State of Texas submitted this revision to us as a part of the 
NOX reductions needed for the H/GA area to attain the 1-hour 
ozone standard. In this document we are taking five separate actions: 
(1) We are approving the December 22, 2000, rule revision to the Texas 
SIP as proposed at 66 FR 36532 (July 12, 2001). The State of Texas 
submitted this revision to us as a part of the NOX 
reductions needed for the H/GA area to attain the 1-hour ozone 
standard. These NOX reductions will assist H/GA to attain 
the 1-hour ozone standard. (2) We are approving exclusion of the CO and 
ammonia emission limits found in 30 TAC Chapter 117 in conjunction with 
NOX emission limits, from the federally approved Texas SIP. 
In our 65 Federal Register 64148 document published on October 26, 
2000, and 65 Federal Register 64914 document published on October 31, 
2000, we included CO and ammonia emission limits, in addition to the 
NOX emission limits, as a part of the federally approved 
Texas SIP. Texas did not originally request their inclusion and 
subsequently asked us not to have these limits included as a part of 
the federally approved SIP. In today's final rulemaking, we are 
excluding the limits on CO and ammonia emissions, resulting from use of 
post combustion controls, from the federally approved SIP for Texas as 
proposed at 66 FR 36532, 36533. (3) We are approving, through parallel 
processing, revisions made to sections of 30 TAC, Chapter 117 that 
Texas proposed on May 30, 2001, and submitted to us as final rules on 
October 4, 2001, concerning stationary diesel engines or stationary 
dual-fuel engines because Texas is relying on these NOX 
reductions to demonstrate attainment of the 1-hour ozone standard in 
the H/GA 1-hr ozone nonattainment area. (4) We are approving, through 
parallel processing, revisions made to sections of 30 TAC, Chapter 117 
that Texas proposed on May 30, 2001, and submitted to us as final rules 
on October 4, 2001, concerning NOX emissions specifications 
and compliance schedules for utility electric generation and ICI 
sources in the H/GA area. (5) We are approving, through parallel 
processing, revisions made to sections of 30 TAC, Chapter 117 that 
Texas proposed on May 30, 2001, and submitted to us as final rules on 
October 4, 2001, concerning both the lean-burn and rich-burn 
reciprocating internal combustion engines.
    In this document we are not approving the alternate or less 
stringent NOX emissions specifications and less stringent 
emissions reductions that are part of the proposed May 30, 2001, Texas 
SIP revision, and submitted to us as final rules on October 4, 2001. 
See proposed action number six at 66 FR 66352, published on July 12, 
2001.
    Table I contains a summary list of the sections of 30 TAC, Chapter 
117 that Texas proposed, on May 30, 2001, adopted on September 26, 
2001, and submitted to us as final rules on October 4, 2001, that we 
are approving (with certain exceptions discussed below) for sources of 
NOX in the H/GA area.

  Table I.--Section Numbers and Section Descriptions of 30 TAC, Chapter
        117 Affected by the May 30, 2001, Proposed Rule Revision
------------------------------------------------------------------------
            Section                            Description
------------------------------------------------------------------------
117.10........................  Definitions.
117.101.......................  Applicability.
117.103.......................  Exemptions.
117.105.......................  Emission Specifications for Reasonably
                                 Available Control Technology.
117.106.......................  Emission Specifications for Attainment
                                 Demonstrations.
117.107.......................  Alternative System-wide Emission
                                 Specifications.
117.108.......................  System Cap.
117.110.......................  System Cap.
117.111.......................  Initial Demonstration of Compliance.
117.113.......................  Continuous Demonstration of Compliance
117.114.......................  Emission Testing and Monitoring for the
                                 Houston/Galveston Attainment
                                 Demonstration.
117.116.......................  Final Control Plan Procedures for
                                 Attainment Demonstration Emission
                                 Specifications.
117.119.......................  Notification, Recordkeeping, and
                                 Reporting Requirements.
117.121.......................  Alternative Case Specific
                                 Specifications.
117.138.......................  System Cap.
117.201.......................  Applicability.
117.203.......................  Exemptions.
117.205.......................  Emission Specifications for Reasonably
                                 Available Control Technology (RACT).
117.206.......................  Emission Specifications for Attainment
                                 Demonstrations.
117.207.......................  Alternative Plant-wide Emission
                                 Specifications.
117.208.......................  Operating Requirements.
117.210.......................  System Cap.
117.211.......................  Initial Demonstration of Compliance.
117.213.......................  Continuous Demonstration of Compliance.
117.214.......................  Emission Testing and Monitoring for the
                                 Houston/Galveston Attainment
                                 Demonstration.
117.216.......................  Final Control Plan Procedures for
                                 Attainment Demonstration Emission
                                 Specifications.
117.219.......................  Notification, Recordkeeping, and
                                 Reporting Requirements.
117.221.......................  Alternative Case Specific
                                 Specifications.
117.471.......................  Applicability.
117.473.......................  Exemptions.
117.475.......................  Emission Specifications.
117.478.......................  Operating Requirements.
117.479.......................  Monitoring, Recordkeeping, and Reporting
                                 Requirements.
117.510.......................  Compliance Schedule for Utility Electric
                                 Generation in Ozone Nonattainment
                                 Areas.

[[Page 57232]]

 
117.520.......................  Compliance Schedule for Industrial,
                                 Commercial, and Institutional
                                 Combustion Sources in Ozone
                                 Nonattainment Areas.
117.534.......................  Compliance Schedule for Boilers, Process
                                 Heaters, Stationary Engines, and Gas
                                 Turbines at Minor Sources.
117.570.......................  Use of Emissions Credits for Compliance.
------------------------------------------------------------------------

2. Did We Receive Written Comments on These Proposed Actions?

    Yes, we received written comments on these proposed actions. See 
sections 4 and 5 of this document for additional information.

3. When Did the Public Comment Period for Our Proposal on These 
Actions Expire?

    The public comment period for our proposal on these actions expired 
on August 13, 2001.

4. Who Submitted Comments to Us?

    We received written comments from Reliant Energy, Inc. (RE); 
Environmental Defense (ED) of Austin, Texas; Louisiana-Pacific 
Corporation (LPC); Business Coalition for Clean Air Appeal Group 
(BCCAAG) represented by Baker Botts, L.L.P. of Dallas, Texas; and Texas 
Industries Operations, L.P. (TXI) represented by Jenkens and Gilchrist 
of Austin, Texas.

5. How Do We Respond to the Submitted Written Comments?

    The summary of the written comments that we received and our 
response to those comments are as follows:
    Comment #1: RE commented that it supports EPA's approval of the 
emissions specifications for the utility boilers (proposed action 
number four, section 9, Table VI of 66 FR 36532, published on July 12, 
2001).
    Response to comment #1: We appreciate the commenter's support in 
this regard.
    Comment #2: RE commented that it supports the BCCAAG's position on 
alternate emission specifications and further adjustments to the 
proposed NOX emissions reductions.
    Response to comments #2: A Consent Order filed in BCCA Appeal Group 
v. Texas Natural Resource Conservation Commission, No. GN1-00210 (250th 
Dist. Ct. Travis County) (complaint filed on January 19, 2001), among 
other things, provides for completion of a Science Evaluation to study 
the causes of rapid ozone formation events and to identify potential 
control measures not found in the H/GA Attainment Demonstration. We can 
not act upon the suggested alternate emission specifications and any 
further adjustments to the State's NOX rules without the 
completed studies and necessary modeling relevant to the H/GA area. 
Neither the State nor EPA has any final scientific data and modeling 
results to support a final action that relaxes the NOX 
reductions required presently by the State for the H/GA area. Such an 
action is not ripe for EPA's review. Therefore, we acknowledged but did 
not propose to approve the BCCAAG's alternate emission reductions and 
schedules identified in 66 FR 36532, published on July 12, 2001. At 
present there is inadequate information in the record to demonstrate 
that the alternate emission specifications and further adjustments to 
the federally-approved NOX emissions reductions would enable 
H/GA to attain the NAAQS for ozone.
    Comment #3: RE states that it is incorporating its September 25, 
2000 comments to TNRCC on the SIP into its present comments on EPA's 
proposed approval of the SIP. RE commented that it incorporates the 
BCCAAG's comments submitted to the TNRCC by reference in its letter. In 
the comments filed by letter of September 25, 2000, with TNRCC, RE 
proposed the REI NOX Emission Reduction Plan, formulated by 
the company, as an alternative to the plan proposed by TNRCC. RE 
further commented that (a) the TNRCC proposed NOX emission 
rates for gas-fired boilers were technically infeasible and 
economically unreasonable; (b) TNRCC underestimated the cost of 
controlling NOX emission from utility boilers and gas 
turbines; (c) CO limits for Gas, Oil, and Coal-fired units need 
delineation; (d) the baseline heat input for 30-day average limit 
calculations should be changed; (e) heavy-duty engine NOX 
reduction technology is not effective on power take off devices on 
utility vehicles; (f) REI supports the rule revisions regarding the cap 
and trade program filed by the Texas Industry Project (TIP); and (g) 
the photochemical modeling forming the basis of the rule is not 
simulating meteorological and chemical processes with sufficient 
accuracy to quantitatively predict the emission reductions needed to 
attain the ozone NAAQS.
    Response to comment #3: We will respond to the BCCAAG's comments 
that have been incorporated by reference by RE later in this document. 
See our responses to comments #21 through #30. We are responding here 
only to those comments by RE in September 2000, which are germane to 
the present rulemaking adopting the TNRCC revisions to 30 TAC Chapter 
117 into the SIP. The TNRCC responded to RE comments in Rule Log No. 
2000-011H-117-AI (December, 2000). The Clean Air Act assigns to the 
states initial and primary responsibility for formulating a plan to 
achieve NAAQS. It is up to the state to prepare state implementation 
plans which contain specific pollution control measures. It is clear 
from review of the TNRCC's analysis, contained in Rule Log No. 2000-
011H-117-AI, that the issues raised by RE comments were evaluated and 
considered by TNRCC during the state rulemaking process.
    The EPA's responsibilities under the Act are qualitatively 
different from those of the state agency. The EPA is charged with 
reviewing and approving or disapproving of enforceable implementation 
plans prepared by states and other political subdivisions identified in 
the statute. It is not EPA's role to disapprove the State's choice of 
control strategies if that strategy will result in attainment of the 
one-hour standard and meets all other applicable statutory 
requirements. See Union Electric v EPA, 427 U.S. 246 (1976); Train v. 
NRDC 421 U.S 60 (1975). The EPA's role in reviewing SIP submittals is 
to approve state choices, provided that they meet the criteria of the 
Clean Air Act. Federal inquiry into the economic reasonableness of 
state action is not allowed under the Clean Air Act (see, Union 
Electric Co., v. EPA, 427 U.S. 246, 255-266 (1976); 42 U.S.C. 
7410(a)(2)) other than for purposes of evaluating the reasonableness 
and availability of alternatives for purposes of a waiver of Federal 
preemption. The State has submitted information indicating that the 
administrative requirements of Texas law have been met. We defer to the 
State analysis until such time as a State Court has determined 
otherwise. Our review of the

[[Page 57233]]

TNRCC's responses to RE comments, taken together with all the rest of 
the information in the administrative record for the SIP, does not lead 
to the conclusion that the SIP is inadequate to attain the ozone NAAQS 
in the H/GA area.
    Comment #4: LPC commented that the NOX emission 
reductions and corresponding emission limits are too low for RACT for 
industrial wood-fired boilers.
    Response to comment #4: The Emission Specifications for Attainment 
Demonstration (ESAD) for wood-fired boilers, taken together with ESADs 
for other point sources of NOX, were developed in order for 
the H/GA area to achieve attainment with the ozone NAAQS. The ESADs are 
technically feasible standards which represent the level of point 
source NOX controls necessary for the H/GA area to attain 
the NAAQS. The EPA recently published an updated version of AP-42 
concerning wood-fired boilers, discussed in the next response.
    Comment #5: LPC commented that EPA should evaluate the 
NOX RACT on wood-fired boilers, and particularly how it 
applies to boilers of differing design, heat input, and wood-fuel. LPC 
noted that the California Air Resource Board's 1991 RACT for wood-fired 
boilers in certain nonattainment areas was 0.052 lb NOX/
MMBtu or 40 parts per million (ppm).
    Response to comment #5: The AP-42 section 1.6.1 referenced by the 
LPC in the commentor's August 10, 2001, comment letter is from the 2/98 
or 2/99 version of the AP-42 (older AP-42). The LPC's comment letter is 
dated August 10, 2001. On August 21, 2001, EPA released its final 
revised version of the AP-42, section 1.6 concerning ``Wood Residue 
Combustion in Boilers.'' You can find the latest version of the AP-42, 
section 1.6 (8/01 version) concerning ``Wood Residue Combustion in 
Boilers'' at http://www.epa.gov/ttn/chief/ap42/ch01/final/c01s06.pdf. 
The NOX emission factor rating in the Table 1.6-2 of the 
older AP-42s were of ``C'' and ``D'' rating category. The 
NOX emission factors in the new Table 1.6-2 are not 
categorized as being boiler type and heat input (size) specific or 
dependent. The NOX emission factor rating of the new 
NOX emission factor from wood-fired boilers listed in the 
new Table 1.6-2 is reported as high as ``A'' rating. The ``A'' rating 
of the NOX emission factor, from wood-fired boilers in the 
new AP-42, indicates that differentiation of the boiler type and heat 
input may not be as significant as once thought to be. In Texas the 
original NOX RACT rules, 30 TAC Chapter 117, were adopted in 
1993 and earlier. As H/GA area continued to be nonattainment for ozone 
and photochemical grid modeling indicated that those early 
NOX control measures were not adequate to bring the area 
into attainment with the one-hour ozone standard, more source 
categories became subject to Chapter 117 rules, and the Chapter 117 
requirements and emission limitations became more stringent. The 
California Air Resource Board recommended the 0.052 lb NOX/
MMBtu limitation in a document entitled ``Determination of RACT/BARCT 
for Industrial, Institutional, and Commercial Boilers, Steam 
Generators, and Process Heaters'' in 1991. The air pollution control 
technology is a dynamic and evolving process. Ten years ago, in 1991, a 
concentration based NOX limit in single digit ppm was 
impracticable. With today's technology and advancements in process 
control techniques, such NOX limits for combustion sources 
are not uncommon. Therefore, we are of the opinion that the State in 
its proposed NOX emission limitation of 0.046 lb 
NOX/MMBtu has taken the boilers of differing type and heat 
input into consideration, and this limit is approvable.
    Comment #6: LPC recommended that EPA should consider and clarify 
potential complications with meeting PM-10 and NOX emission 
limits with multiple and simultaneous controls. In particular, LPC 
commented that NOX control technologies for wood-fired 
boilers are unproven, and that it was unable to locate industry-
specific data supporting the proposed limit of 0.046 lb NOX/
MMBtu.
    Response to comment #6: According to section 4.5 of the 
``Background Document Report on Revisions to 5th Edition AP-42, Section 
1.6, Wood Residue Combustion In Boilers'', dated July 2001, emission 
factors for NOX have been replaced with new factors. The old 
(2/99) AP-42 NOX emission factors separated the data by 
boiler configuration. The average NOX emission factors for 
each individual combustor were grouped by fuel type. All of the data 
were from boilers that had no NOX emission controls and were 
from boilers burning either dry wood or bark and bark/wet wood. After 
analysis of the data, the AP-42 factors were determined by grouping the 
data by dry or wet wood regardless of firing configuration. The 
following table shows the summary statistics of the data. The old (2/
99) AP-42 factors have been converted to lb/MMBtu for this table. The 
units for the minimum and maximum are also lb/MMBtu. The following 
table contains NOX emission factors for wood-fired boilers.

                                                 Table II.--NOX Emission Factors for Wood-Fired Boilers
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                      New AP-42 NOX
                     Fuel                            Firing configuration          2/99 AP-42 NOX      Factor (lb/     Count      Minimum      Maximum
                                                                                  Factor (lb/MMBtu)      MMBtu)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Bark/Wet Wood................................  All.............................     0.042/0.16/0.22            0.22         82        0.023        1.281
Dry Wood.....................................  All.............................     0.042/0.16/0.22            0.22          8        0.187        0.863
--------------------------------------------------------------------------------------------------------------------------------------------------------

The use of one emission factor for all firing configurations, 82 
different counts of data, NOX emission factors as low as 
0.023 lb/MMBtu, all together indicate that the proposed limitation of 
0.046 lb NOX/MMBtu by adoption of combustion control and/or 
post combustion controls is practicable. Section 5 of the ``Background 
Document Report on Revisions to 5th Edition AP-42, Section 1.6, Wood 
Residue Combustion In Boilers' dated July 2001, contains a listing of 
72 references used to develop this report. You can find a copy of this 
report at: http://www.epa.gov/ttn/chief/ap42/ch01/bgdocs/b01s06.pdf
    On the issue of multiple controls, it is not uncommon to see a 
series of different control devices serving one combustion source. For 
example, a quick search of the California Air Resource Board's 
Clearinghouse reveals that for wood fired boilers, thirteen years ago, 
a 216 MMBtu/hr fluidized bed combustion boiler fired with pelletized 
wood waste (even smaller than LPC's 249 MMBtu/hr boiler) was permitted 
to use ammonia injection (thermal de-NOX) to control 
NOX emissions, limestone injection to control sulfur oxides 
(SOx) emissions, and multiclone and baghouse, to reduce particulate 
matter (PM) emissions. The permit A310-300-88, for this source was 
issued on 09/30/1988. This existing source is only one example of many

[[Page 57234]]

other wood-fired boilers that employ multiple control devices to reduce 
emissions of different pollutants without jeopardizing compliance with 
regulations whether proposed/promulgated by the State or EPA. The 
record supports that use of multiple controls in association with 
operation of a wood fired boiler has been successfully practiced 
elsewhere and is technically feasible in the H/GA area.
    Comment #7: LPC commented that EPA should evaluate the negative 
impacts associated with a forced change from a sustainable and waste 
minimizing energy source to other energy alternatives.
    Response to comment #7: Based on the background information 
discussed above concerning wood-fired boilers, EPA disagrees that the 
ESAD for this equipment in the Texas SIP approved today will 
necessitate a forced change of fuel source. There may be instances in 
which it may be practical or economically advantageous for an 
individual facility to effect such changes. On this issue as with 
others, the state has the initial and primary responsibility of 
formulating plans to attain the NAAQS.
    Comment #8: LPC expressed its concern over introducing ammonia in 
its plywood mill that employs 400 people.
    Response to comment #8: We can understand and do appreciate LPC's 
concern about safety of its employees due to potential introduction of 
ammonia into its plywood plant. Historically many facilities in Europe, 
Japan, and the United States have used injection of this reagent as a 
method of control to reduce NOX or SOx emissions from their 
combustion sources. As material contained in the docket indicates if 
control equipment is properly operated, there would be no excess 
ammonia emissions. Once again, we are of the opinion that LPC's 
expressed concern, over introduction of a harsh compound at its mill, 
can be alleviated by proper training of its operators, implementing 
safe and good housekeeping/maintenance practices, and actively 
preparing employees for possible emergency episodes. As a regulatory 
safeguard, the 30 TAC, Chapter 117 does set short term emission limits 
for ammonia associated with operation of combustion sources and their 
associated control devices. See 117.105(j), 117.106(d)(1)(B)(2), 
117.205(g), and 117.206(e)(2). Additionally, Chapter 117 allows for 
operational flexibility and emission cap and trading as viable options 
to a source or operator. We believe that LPC can safely introduce 
ammonia or other reagent to reduce NOX emissions from its 
wood-fired boiler, but that LPC can also come into compliance by other 
means if it chooses to do so.
    Comment #9: TXI commented that its lightweight aggregate kilns in 
Fort Bend County, Texas are the only such kilns in the H/GA area and 
thus are unfairly targeted. TXI states that NOX emissions 
from its kilns account for only 0.02% of the NOX reductions 
from point sources and the NOX reduction technique has not 
been demonstrated.
    Response to comment #9: The EPA has reviewed the TNRCC's response 
to this and other comments, and generally agrees with the TNRCC's 
analysis. The logic for including lightweight aggregate kilns as a part 
of the control strategy to reduce its NOX emissions is due 
to several factors. NOX emissions from these kilns have been 
uncontrolled previously. The TXI plant in Fort Bend is a major source 
of NOX. The photochemical grid modeling indicates that 
additional NOX reductions are needed to bring the H/GA area 
into attainment with the one-hour ozone standard. The fact that large 
amounts of NOX reductions are needed to bring the H/GA area 
into attainment constitutes grounds to require NOX emissions 
reductions from a major and uncontrolled source of NOX, as 
is the case with the TXI's Fort Bend operation, in a severe ozone 
nonattainment area, even though the source's NOX emissions 
are a small percentage of the area's total NOX emissions. 
Advances in air pollution control technology combined with the Chapter 
117 rules' operational flexibility, and emission cap/trading as 
available options to the source or operator should enable the commenter 
to comply with the proposed emission limitation of 117.206(c)(13). The 
H/GA area's control strategy requires other sources with even lower 
NOX emissions to reduce their emissions at much higher 
rates. An 11 hp stationary diesel engine emits less NOX per 
day and year than TXI's plant in Fort Bend County. Under the proposed 
requirements, this 11 hp stationary diesel engines will have to reduce 
its emissions from 11.0 grams NOX/hp-hr to 5.0 grams 
NOX/hp-hr. This degree of reduction for stationary diesel 
engines in excess of 50% is far more than the degree of reduction 
required of TXI's lightweight aggregate kilns in Fort Bend County. 
Therefore, we disagree with the TXI's position that NOX 
emissions from its lightweight aggregate kilns in Fort Bend County are 
small, that it has been unfairly targeted by the State, and that a 
reasonable NOX control technique for the Fort Bend plant is 
not feasible.
    Comment #10: TXI comments that the proposed Chapter 117 rule is a 
``major environmental rule'' and potentially subject to the 
requirements of Texas Government Code section 2001.0225 (25 Texas 
Register of August 25, 2000). As a result, a cost, benefit and economic 
analysis to comply with the control strategy for TXI's lightweight 
aggregate plant should have been performed by the TNRCC.
    Response to comment #10: As stated previously, EPA's role in 
reviewing SIP submittals is to approve state choices, provided that 
they meet the criteria of the Clean Air Act. Federal inquiry into the 
economic reasonableness of state action is not allowed under the Clean 
Air Act (see, Union Electric Co., v. EPA, 427 U.S. 246, 255-266 (1976); 
42 U.S.C. 7410(a)(2)) other than for purposes of evaluating the 
reasonableness and availability of alternatives for purposes of a 
waiver of Federal preemption. The State has submitted information 
indicating that the administrative requirements of Texas law have been 
met. We defer to the State analysis until such time as a State Court 
has determined otherwise. Federal inquiry into the economic 
reasonableness of state action is not allowed under the Clean Air Act 
(see, Union Electric Co., versus EPA, 427 U.S. 246, 255-266 (1976) and 
42 U.S.C. 7410(a)(2)) other than for purposes of evaluating the 
reasonableness and availability of alternatives for purposes of a 
waiver of Federal preemption. The State has submitted information 
indicating that the administrative requirements of Texas law have been 
met. We defer to the State analysis until such time as a court of 
competent jurisdiction determines otherwise.
    Comment #11: TXI commented that mobile sources are the cause of 
nonattainment, that major cities of the State have expanded, and that 
point sources need not to be further controlled.
    Response to comment #11: We do agree that mobile sources are a 
major source of air pollution in major cities in the States and mobile 
source emissions need to be controlled to help bring the nonattainment 
areas into attainment with the ozone standards. The State has proposed 
and adopted many measures to reduce emissions associated with on-road 
and off-road mobile source. However, as TNRCC noted in its response to 
this comment, while mobile sources contribute a significant share of 
the ozone-forming pollutants in H/GA, modeling analyses show that 
reducing mobile source emissions alone will not be sufficient to bring 
the area into attainment. The Texas SIP must

[[Page 57235]]

therefore also regulate point sources of NOX. The 1996 
emission inventory of NOX sources in the H/GA area indicates 
that 54% (672.05 of total 1250.16 tpd) of emissions are from stationary 
sources, while on-road mobile sources account for 24% (302.04 of the 
total 1250.16 tpd) of the emissions. See http://www.tnrcc.state.tx.us/air/aqp/ei/rsumhg.htm#nox.
    Further, the State has shown that even if it controlled all of the 
mobile source emissions to zero, the H/GA area would still be in 
nonattainment. Therefore, the record shows that both mobile and 
stationary sources need to be controlled simultaneously to achieve the 
ozone attainment goal.
    Comment #12: TXI commented that the State did not have any 
technical justification for a 30% reduction in NOX emissions 
from lightweight aggregate kilns. TXI contended the reduction 
requirement is arbitrary and has no scientific basis.
    Response to comment #12: The TNRCC based the 30% reduction in 
NOX emissions on availability of combustion modification, 
combustion control, mid-kiln firing, 30-day rolling average, and the 
emission cap and trading options to the source or operator. The 
available technologies, operational flexibilities, and the emission cap 
and trading allowed for in Chapter 117 rules, should accommodate a 
source to obtain 30% reduction in its NOX emission as 
compared to the source's 1997 baseline emissions. The 30% reduction in 
NOX emissions from a kiln is consistent with EPA's 
publication number ``EPA-453/R-94-004,'' entitled ``Alternate Control 
Techniques for Cement Plants.'' Therefore, we believe that the State's 
record supports the 30% reduction requirement, is technically feasible, 
and based on a sound scientific basis.
    Comment #13: ED commented that the proposed rule for stationary 
diesel engines fails to provide sufficient emissions limitations.
    Response to comment #13: As stated in section six of 66 FR 36532, 
published on July 12, 2001, Texas had not proposed any regulations in 
the SIP limiting NOX emissions from stationary diesel 
engines or stationary dual-fuel engines prior to May 30, 2001. After 
the State adopted and submitted its December 2000 attainment 
demonstration SIP for the H/GA area, and based upon Texas' proposed 
Reasonably Available Control Measures (RACM) review, the State 
determined that this particular source category should be controlled in 
the H/GA area to meet the Act's RACM requirements. Adopting these 
emission limitations will only strengthen the existing federally-
approved Texas SIP and further supports the H/GA area's attainment of 
the ozone NAAQS. This was our basis for proposing to approve the rule 
revision. The proposed emission specifications for stationary diesel 
engines or stationary dual-fuel engines are based on 40 CFR 89.112(a), 
Table I. For the H/GA area, the State has shown that the chosen 
emission limitations are technically and economically feasible and 
further reductions would not benefit the H/GA area's environment.
    Comment #14: ED commented that the TNRCC should establish the same 
requirements for new and existing stationary diesel engines in the H/GA 
area that are not used exclusively during infrequent emergency or 
backup situations.
    Response to comment #14: The TNRCC has adopted Chapter 117 
regulations for control of NOX emissions from stationary 
diesel engines or stationary dual-fuel engines. The emission 
specifications for stationary diesel engines or stationary dual-fuel 
engines are based on 40 CFR 89.112(a), Table I. We understand Texas has 
adopted even more stringent standards for new engines getting standard 
permits. We believe it is reasonable for existing engines to have less 
stringent standards than new engines because it is generally more 
feasible to achieve cleaner operation when starting from an initial 
design rather than retrofitting an older engine. Furthermore, the 
emissions of NOX and CO from combustion sources are 
interrelated. Requiring further reductions in NOX emissions 
from existing engines could potentially result in increases of CO 
emissions, and must be approached carefully. The State received a 
similar comment. In their response they explained that based on 
information in the emissions inventory and contact with diesel engine 
vendors and others familiar with the stationary diesel engines in the 
H/GA area, the State is unaware of any existing stationary diesel 
engines that are being operated in situations other than generation of 
electricity in emergency situations or operation for maintenance and 
testing. The TNRCC believes and EPA agrees that few existing engines 
will be moved from emergency service to routine or peak shaving 
operations for the following reasons. Any existing engines at a site 
with a collective design capacity to emit (from units with chapter 117 
emission limits) greater than ten tpy of NOX are subject to 
the Chapter 101 mass emissions cap and trade program if they choose to 
increase their operation to 100 hours per year or more (based on a 
rolling 12-month average) and, in addition to having to comply with the 
Chapter 117 rules, will only be issued NOX emissions 
allocations based on their historical activity level which would be 
much lower than 100 hrs/year. Existing engines theoretically could be 
switched to peak shaving service up to 100 hours/year but in reality 
only about 40 hours/year would be available for this type of operation. 
The remaining time would have to be used for normal routine testing of 
the engines. It is unlikely that the profit from sale of electricity 
would justify the cost of the modifications to the switching system for 
only about 40 hours of operation. EPA concludes that additional control 
beyond the existing program is not reasonable.
    Comment #15: ED comments that potential emissions from stationary 
diesel engines are significant and refers to an electricity management 
and consulting firm that is marketing the concept of linking these 
emergency diesel back up generators together as a mid-size peaking unit 
through a virtual power plant.
    Response to comment #15: It is unclear how many or which of these 
emergency back up generators in the H/GA area could conceivably 
participate in such a virtual power plant marketing plan. Should the 
NOX emissions and number of emergency back up generators 
participating in this virtual power plant market or otherwise operating 
in H/GA area grow to such a degree that they prove to be significant 
for purposes of attaining the ozone NAAQS, we will work with the State 
to evaluate this concern in the mid-course review process. Presently, 
neither the State nor we have the information whether this type of 
control is feasible for the H/GA area. Additional control measures will 
be required as necessary to achieve the NAAQS as expeditiously as 
practicable but no later than November 2007. This will allow 
adjustments to be made should a source category grow at an unexpectedly 
large rate.
    Comment #16: ED commented that EPA should require the TNRCC to make 
``one-date'' as the effective date for compliance with the 
NOX emission limitations for the stationary diesel engines 
or dual-fuel stationary engines instead of the Tier 1, 2, or 3 
approach.
    Response to comment #16: The phased-in approach or the Tier 1, 2, 
or 3 compliance date method has been proven to work in practice at the 
Federal level (40 CFR 89.112(a)), and we have decided to adopt this 
approach for practical reasons. We are of the opinion

[[Page 57236]]

that the phased-in approach is a proper and practical method of 
phasing-in new emission limitations where a large range of engine sizes 
and various engine ages are involved. We disagree with the ED's 
position to have the TNRCC replace the effective compliance date of 
NOX emission limitations for the stationary diesel engines 
or dual-fuel stationary engines from the proposed Tier 1, 2, or 3 
method to a ``one-date'' for all.
    Comment #17: ED commented that EPA should significantly strengthen 
the NOX emission requirements for the existing small backup 
electric generating units.
    Response to comment #17: As stated earlier, the emission 
specifications for stationary diesel engines or stationary dual-fuel 
engines are based on 40 CFR 89.112(a), Table I. Currently, we are not 
aware of any other State program that has adopted more stringent 
emission specifications for stationary diesel engines or stationary 
dual-fuel engines. Although it is possible that existing emergency 
diesel generators could be converted to a peak shaving use, and 
consequently contribute to ozone exceedances due to operation on high 
electricity demand during summer days and conditions that are conducive 
to formation of more ozone, these diesel units are normally equipped 
with a timer that operates the engines for one-half to one hour weekly 
for testing and maintenance purposes. To demonstrate continuous 
compliance, subsection 117.213(i) requires engines to operate with an 
elapsed run time meter and further states that the installed run time 
meters shall be ``non-resettable.''
    52 weeks per year  x  \1/2\ hour to 1 hour per week for maintenance 
and testing =26 to 52 hours per year for maintenance and testing. Due 
to the fact that the 100 hours per year limit includes the testing and 
maintenance times also, the remaining (100 hours per year - 26 to 52 
hours per year for maintenance and testing = 74 to 48 hours per year 
for peak shaving) 48 to 74 hours per year would be too short a time to 
economically justify the expense of telemetry interconnect equipment in 
order to generate and supply power to a grid system. These inherent 
difficulties will serve as hurdles/reasons in discouraging an operator 
from converting its emergency backup generators to peak shaving units. 
Furthermore, by converting these backup generators the source or 
operator would always run the risk of not having power available to 
itself when a true emergency situation arises at its own site. As 
stated earlier, should the NOX emissions and number of 
emergency back up generators participating in this virtual power plant 
market actually prove to be significant, we will work with the State to 
evaluate this concern in the mid-course review process.
    Comment #18: ED commented that EPA must reject efforts to relax the 
control measures on the books before the identified shortfall in 
emission reductions is eliminated.
    Response to comment #18: The Supreme Court has consistently held 
that under the Act, initial and primary responsibility for deciding 
what emissions reductions will be required from which sources is left 
to the discretion of the States. Whitman v. Am. Trucking Ass'ns, 531 
U.S. 457 (2001); Train v. NRDC, 421 U.S. 60 (1975). This discretion 
includes the continuing authority to revise choices about the mix of 
emission limitations. Train at 79. Therefore, EPA believes that it is 
appropriate and authorized under the Act for a State to continue to 
update its growth projections, inventories, modeling analyses, control 
strategies, etc., and submit these updates as a SIP revision based on 
newly available science and technology.
    However, Section 110(l) of the Act (added by the 1990 Amendments to 
the Act) governs EPA's review of a SIP revision from a state that 
wishes to make changes to its approved SIP. This section provides that 
EPA may not approve a SIP revision if it will interfere with any 
applicable requirement concerning attainment and reasonable further 
progress or any other applicable requirement of the Act. The Supreme 
Court under the 1970 CAA, observed that EPA's judgment in determining 
the approval of a SIP revision is to ``measure the existing level of 
pollution, compare it with the national standards, and determine the 
effect on this comparison of specified emission modifications.'' Train 
at 93. Therefore, if we receive an attainment demonstration SIP 
revision from Texas that contains relaxed control measures or the 
replacement of existing control measures, we would consider the revised 
plan's prospects for meeting the current attainment requirements and 
other applicable requirements of the Act. See, the Act section 
110(k)(3), Union Electric v. EPA, 427 U.S. 246 (1976) and Train v. 
NRDC, 421 U.S. at 79.
    In summary, the State may choose to submit a SIP revision in 2002 
or 2003 as it has suggested it may do. If we receive a SIP revision 
that meets our completeness criteria, we will review it against the 
statutory requirements of section 110(l). Further, the Act requires us 
to publish a notice and to provide for public comment on our proposed 
decision. The EPA believes that it is in the context of that future 
rulemaking, not EPA's current approval, that the commenter's concern 
regarding the appropriateness of any replacement measures adopted by 
the State should be considered.
    Comment #19: ED commented that EPA should not approve the 
NOX reduction proposal of 90% for electric power plants, but 
should instead require the electric power plants to meet the 93% 
NOX reduction.
    Response to comment #19: The NOX control strategy of 
December 22, 2000, SIP revision called for 595 tons per day reduction. 
See Table V, section 8 of this document. The revised NOX 
control strategy of the May 30, 2001, calls for 588 tons per day 
reduction. See Table XI, section 16 of this document. Although ED is 
correct in stating that the amount of NOX reduction from 
electric power plants has been reduced, the NOX emissions 
reductions from recent State Legislative actions requiring some 
grandfathered sources to reduce their emissions by about 50% offsets 
and counter balances the power plant's NOX emission 
reduction adjustment. Therefore, the NOX emissions in east 
and central Texas (regional strategy) will be less than what the State 
SIP had called for in the December 22, 2000 SIP revision. In terms of 
cost per ton of overall NOX removed, the modified 
NOX emission limitations of the May 30, 2001 state proposal 
would be more cost effective than the December 22, 2000, control 
strategy scenario for the H/GA area. We disagree with the ED's position 
to reject the revised May 30, 2001 reduction proposal for the electric 
power plants.
    Comment #20: ED commented that the compliance schedule under action 
number four of the proposal 66 FR 36532, (July 12, 2001) is not as 
expeditious as practicable.
    Response to comment #20: The compliance schedule under action 
number four of the proposal 66 FR 36532, (July 12, 2001) was needed to 
allow affected sources more planning time and choices to put in place 
the NOX emissions reductions. Action number four requires 
utility electric generation and ICI sources to adopt a phased-in 
approach (year by year) and incremental method (percent NOX 
reduction required each year) for compliance purposes. According to 
this approach the ultimate compliance date of 2007 will remain 
unchanged. In our proposal published on July 12, 2001, we made it very 
clear that the final compliance date to attain compliance with the one-
hour ozone standard in the H/GA area will remain the same and

[[Page 57237]]

unchanged and that any control strategy will have to achieve attainment 
with the federal one-hour ozone standard by 2007. The essential and 
resulting final compliance date will remain the same; the distinction 
is the route and method of approach used to reach the same end point. 
Therefore, we are of the opinion that compliance requirements under 
action number four of the July proposal are as expeditious as 
practicable.
    Comment #21: BCCAAG commented that most of the NOX 
emission limitations have been developed with a less than complete 
analysis of economic and technical feasibility or possible economic or 
environmental dis-benefits. It further stated that the TNRCC's 90% 
NOX control approach is arbitrary and circumvents the intent 
established in the Texas Clean Air Act.
    Response to comment #21: We do not believe that reducing 
NOX and thus controlling ozone in the H/GA area will 
constitute an environmental dis-benefit.
    This action merely approves state law as meeting federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Because this rule approves preexisting 
requirements under state law and does not impose any enforceable duty 
beyond that required by state law and hence does not have a significant 
economic impact on a substantial number of small entities, an analysis 
under the Regulatory Flexibility Act (5 U.S.C. Sec. 601 et seq.) is not 
required.
    Details on the State's assessments of financial impact and 
technical feasibility can be found throughout the record generated by 
the TNRCC for the SIP (``SIP documents''). The EPA's role in reviewing 
SIP submittals is to approve state choices, provided that they meet the 
criteria of the Clean Air Act. Federal inquiry into the economic 
reasonableness of state action is not allowed under the Clean Air Act 
(see, Union Electric Co., v. EPA, 427 U.S. 246, 255-266 (1976); 42 
U.S.C. 7410(a)(2)) other than for purposes of evaluating the 
reasonableness and availability of alternatives for purposes of a 
waiver of Federal preemption. The State has submitted information 
indicating that the administrative requirements of Texas law have been 
met. We defer to the State analysis until such time as a State Court 
has determined otherwise.
    Comment #22: BCCAAG commented that point sources control technology 
has advanced in recent years but there is no one demonstrated retrofit 
technology application to achieve 90% NOX reduction from 
point sources.
    Response to comment #22: We agree with the statement that 
NOX point source control technology has advanced in recent 
years. In fact, levels of NOX emissions control that can be 
achieved have advanced to degrees that may not have been practicable a 
decade or so ago. Pollution control technology is a dynamic and 
evolving field. The domain of reference for NOX retrofit 
technology is not limited to this country. It is technologically 
feasible to accomplish the degree of control that the rule calls for; 
the issue becomes cost and economic feasibility rather than technical 
infeasibility. We also refer the commenter to 26 Texas Register 524, 
published on January 12, 2001, for a detailed explanation by the TNRCC 
of the level of NOX control. We responded to comments on the 
cost and economic feasibility of the control requirements in our 
response to comment #22 of this document.
    Comment #23: BCCAAG commented that not enough time (year-end 2004) 
has been allowed in the rule to implement the required NOX 
reductions from point sources.
    Response to comment #23: In Texas the original NOX RACT 
rules, 30 TAC Chapter 117, were adopted in 1993 and earlier. As the H/
GA area continued to remain nonattainment for ozone and it became 
evident that earlier NOX control measures were not adequate 
to bring the area into attainment with the one-hour ozone standard, 
more source categories became subject to the Chapter 117 rules, and the 
Chapter 117 requirements and emission limitations became more 
stringent. Historical revisions to the Chapter 117 rules, including the 
additional NOX control from point sources in the H/GA area, 
have not been introduced by the State without active participation of 
the stakeholders. We believe that the majority of the affected sources 
have been aware, involved, and actively participating in the regulatory 
development arena of Chapter 117 rules over the last decade. The H/GA 
area is classified as a severe-17 ozone nonattainment area according to 
the federal Clean Air Act, 42 U.S.C., Sec. 7401 et seq., and will need 
to attain the one-hour ozone standard by November 15, 2007. Under 42 
U.S.C., Sec. 7511a(d) the State of Texas is required to develop and 
submit to EPA a SIP revision that will bring the H/GA area into 
attainment with the one-hour ozone standard. To be classified as 
attainment with the one-hour ozone standard by EPA, three complete 
calendar years of ozone monitoring data are needed (Appendix H to 40 
CFR Part 50--Interpretation of The 1-Hour Primary and Secondary 
National Ambient Air Quality Standards for Ozone). Reading 42 U.S.C. 
Sec. 7511a(d) and 40 CFR 50 Appendix H together, as a practical matter, 
the year-end 2004 deadline will effectively become an initial 
compliance deadline; otherwise the H/GA area will not be able to comply 
with the compliance deadline of November 15, 2007. Thirty plus years of 
ozone nonattainment in the H/GA area warrants no more delays. We fully 
support the State's proposed implementation deadline and therefore 
disagree with the commenter's position on insufficiency of time allowed 
to implement the required NOX control measures.
    Comment #24: BCCAAG commented that 90% reduction effectively 
eliminates the ability to create surplus credits under the cap and 
trade program and will cause regional economic impacts that would lead 
to a ``no future growth'' situation.
    Response to comment #24: We want to emphasize that it is not within 
the scope of this rulemaking to forecast on the region's future 
business growth and expansions. The Mass Emissions Cap and Trade 
Program (30 TAC Chapter 101, Subchapter H, Division 3) is being 
approved in an action published separately in this issue of the Federal 
Register. The emission credits under the mass emissions cap and trade 
program will have to be actual, surplus, real, enforceable, and 
certifiable. These rules will bring more flexibility and financial 
incentives to reduce air pollution, promote technological innovations, 
and encourage creative methods of pollution control over the old 
command and control approach for each individual source. The Chapter 
117 rules do not limit or stop future economic expansion and growth. 
Generally, environmental regulations do not limit growth; they enhance 
sustainable growth. We do not believe that Southern California 
experienced no growth under its Regional Clean Air Incentives Market 
(RECLAIM) program. In fact, one cannot dispute the business expansions 
and economic prosperity of Southern California in the years following 
the adoption of its RECLAIM program. We disagree with the BCCAAG's 
position in this regard.
    Comment #25: BCCAAG commented that according to their forecast for 
the 2000-2004 time frame, resource supply and demand for construction 
labor, design engineering staff, specialized labor, and Selective 
Catalytic Reduction (SCR) catalyst supply for the H/GA area exceed 
available capacities.
    Response to comment #25: It is not within the scope of this 
rulemaking to forecast resource and market demand availability of a 
certain industrial sector. However, historically the market develops 
additional supply when there

[[Page 57238]]

is increased demand. Regulated units in the H/GA area can come into 
compliance in several ways, not all of which rely on physical 
installation of additional controls. Moreover, the TNRCC has extended 
the compliance deadlines for certain units, which is expected to 
mitigate any potential inadequate capacity problems. For objectivity 
and public record purposes, it appears that surveys cited as reference 
by the commenter are conducted or sponsored, in part, by the industry 
groups.
    We refer the commenter to 26 Texas Register 524, published on 
January 12, 2001, for a detailed explanation of the level of 
NOX control. The EPA's role in reviewing SIP submittals is 
to approve state choices, provided that they meet the criteria of the 
Clean Air Act. Federal inquiry into the economic reasonableness of 
state action is not allowed under the Clean Air Act (see, Union 
Electric Co., v. EPA, 427 U.S. 246, 255-266 (1976); 42 U.S.C. 
7410(a)(2)) other than for purposes of evaluating the reasonableness 
and availability of alternatives for purposes of a waiver of Federal 
preemption. The State has submitted information indicating that the 
administrative requirements of Texas law have been met. We defer to the 
State analysis until such time as a State Court has determined 
otherwise.
    Comment #26: BCCAAG commented that the proposed rules will decrease 
the production of ethylene and polyethylene plants during the 2003-2004 
implementation period and will cause loss of sales/income.
    Response to comment #26: We are not aware of any NOX 
rules in the country that have tailored their compliance deadlines or 
emissions reduction plans to fit operation of one certain industrial 
sector (ethylene and polyethylene plants) or specific plants' long run 
maintenance or shutdown schedules. Any such accommodation in the rule 
could be interpreted as lowering the bar of emission control or 
extending special treatment to those specific plants. What seems to be 
missing from the commenter's statement of concern over production/sales 
losses from ethylene and polyethylene plants is the health care and 
welfare costs associated with failure to install the proposed controls. 
The fact that the construction/reconstruction and installation of a 
control device may cause temporary delay in production rate does not 
constitute grounds for exempting that source or subjecting the source 
to a less stringent control requirement than the regulations would 
otherwise require. We support the State's proposed implementation 
deadline and emission limitations and disagree with the commenter's 
position in this regard.
    Comment #27: BCCAAG commented that the State has not weighed and 
analyzed costs and technical feasibility of the control options for 
utility boilers, gas turbines, heaters and furnaces, duct burners, 
internal combustion (IC) engines, and ICI boilers. The commenter 
proposes a NOX standard comparable to those deployed in 
South Coast Air Quality Management District (SCAQMD).
    Response to comment #27: On the subject of technical feasibility 
analysis we offer the following: The H/GA area is classified as a 
severe-17 ozone nonattainment area and is the largest emitter of 
NOX emissions in the southern part of the country, a larger 
emitter in amount than the Los Angeles area. See http://www.epa.gov/air/data/netemis.html. The ozone control strategy in the H/GA area is 
driven more by NOX control measures than VOC. Although the 
SCAQMD is normally the trend-setter in the field of air pollution 
control in the States, some of the point source NOX 
standards the commenter refers to were set in the 1988 to 1991 time 
era. Air pollution control technology is a dynamic and evolving 
process. A decade ago, a concentration based NOX limit in 
single digit ppm was impracticable; while with today's technology and 
advancements in process control techniques a concentration based 
NOX limit in single digit ppm has become practicable and 
common. What used to be the state-of-art control technique a decade or 
so ago, as set by the SCAQMD, may not be so in the air pollution 
control industry now. Additionally, operational flexibility and 
emission cap and trading provisions built in the NOX rules 
serve as viable options that a source or operator can take advantage 
of. We believe that advances in air pollution control technology 
combined with the Chapter 117 rule operational flexibility, and with 
emission cap/trading, should enable a source or operator to meet the 
proposed point source NOX emission limitations. With regard 
to the cost and economic feasibility of the control requirements, 
actions such as the approval of a SIP revision which merely approve 
state law as meeting federal requirements and imposes no additional 
requirements beyond those imposed by state law are not subject to 
economic impact analysis under the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.). The EPA's role in reviewing SIP submittals is to approve 
state choices, provided that they meet the criteria of the Clean Air 
Act. Federal inquiry into the economic reasonableness of state action 
is not allowed under the Clean Air Act (see, Union Electric Co., v. 
EPA, 427 U.S. 246, 255-266 (1976); 42 U.S.C. 7410(a)(2)) other than for 
purposes of evaluating the reasonableness and availability of 
alternatives for purposes of a waiver of Federal preemption. The State 
has submitted information indicating that the administrative 
requirements of Texas law have been met. We defer to the State analysis 
until such time as a State Court has determined otherwise. Furthermore, 
we refer the commenter to 26 Texas Register 524, published on January 
12, 2001, for a detailed explanation of the level of NOX 
control. We support the State's proposed NOX emission 
limitations and therefore, disagree with the commenter's position on 
costs and technical feasibility of the emission controls from point 
sources of NOX.
    Comment #28: BCCAAG commented that introduction of post combustion 
technology with ammonia usage could increase ammonia emissions and 
concentrations in the H/GA area.
    Response to comment #28: We can understand and do appreciate 
BCCAAG's concern about the potential for increase in ammonia emissions 
in the H/GA area. Historically many facilities in Europe, Japan, and 
the United States have used injection of this reagent as a method of 
control to reduce NOX or SOX emissions from their 
combustion sources. As material contained in the docket indicates if 
control equipment is properly operated, there would be no excess 
ammonia emissions. As a regulatory safeguard, 30 TAC Chapter 117 does 
set short term emission limits for ammonia associated with operation of 
combustion sources and their associated control devices. See 
117.105(j), 117.106(d)(1)(B)(2), 117.205(g), and 117.206(e)(2). We 
support the State's proposed emission limitations and; therefore, 
disagree with the commenter's position in this regard.
    Comment #29: BCCAAG commented that storage, handling, and 
transportation of ammonia is risky.
    Response to comment #29: We can understand and do appreciate 
BCCAAG's concern about potential risk associated with the storage and 
handling of ammonia in the H/GA area. As a regulatory safeguard, 30 TAC 
Chapter 117 does set short term emission limits for ammonia associated 
with operation of combustion sources and their associated control 
devices. See 117.105(j), 117.106(d)(1)(B)(2), 117.205(g), and 
117.206(e)(2). The commenter mentions that annually millions of pounds 
of ammonia would have to be transported, handled, stored,

[[Page 57239]]

and used throughout the H/GA area. We want to bring to the commenter's 
attention that many more millions of pounds of petroleum related 
chemicals are transported, handled, stored, and used throughout the H/
GA area in association with activities related to some of the 
commenter's constituents, every year. Using a similar analogy, gasoline 
is a volatile, flammable solvent and is composed of potentially 
carcinogenic chemicals. Some of the BCCAAG constituents in the H/GA 
area are involved in the business of refining and producing gasoline 
and petrochemical solvents. Millions of Americans drive gasoline-fueled 
engines to and from work/home every day. We do not believe that it 
follows that these people will need to cease their daily driving 
activities due to the risk associated with the storage and handling of 
gasoline. We support the State's proposed emission limitations and 
therefore disagree with the commenter's position in this regard.
    Comment #30: BCCAAG commented that there will be instances that 
shutdown of equipment may have to be considered to meet the desired 
NOX emission reductions.
    Response to comment #30: We agree that there may be instances that 
the shutdown of marginal (economically speaking) existing equipment 
will have to be considered. The surplus credit associated with these 
shutdowns could be used in emission trading for financial gains by the 
source or operator. The source also has the option to consolidate the 
emissions from marginal equipment with other point sources and utilize 
a combined control technique, or to obtain emission allowances. Both of 
these options have been built into the Chapter 117 rules.

6. What Are the NOX Emission Specifications for Point 
Sources of NOX, in the H/GA Area Based Upon the December 
22, 2000, SIP Revision, That We Are Approving?

    This rule revision requires reductions of NOX emissions 
from point sources in the H/GA ozone nonattainment area. The following 
table contains a summary of the NOX emission specifications 
for attainment demonstration purposes that we are approving for point 
sources in the H/GA.

      Table III.--Affected Sources and NOX Emission Specifications for Attainment Demonstration in the H/GA
----------------------------------------------------------------------------------------------------------------
                  Source                           NOX emission specification for attainment demonstration
----------------------------------------------------------------------------------------------------------------
Utility Boilers...........................  0.010-0.060 lb/MMBtu.
Turbines and Duct Burners.................  0.015-0.150 lb/MMBtu.
Heaters and Furnaces......................  0.010-0.036 lb/MMBtu.
Internal Combustion Engines...............  0.045-0.133 lb/MMBtu or 0.17-0.50 gram/hp-hr.
Industrial Boilers........................  0.010-0.030 lb/MMBtu.
Coke-fired Boilers........................  0.057 lb/MMBtu.
Wood Fuel-fired Boilers...................  0.046 lb/MMBtu.
Rice hull-fired Boilers...................  0.089 lb/MMBtu.
Oil-fired Boilers.........................  2.0 lb/1,000 gallons of oil burned.
----------------------------------------------------------------------------------------------------------------

    We are approving the above-listed NOX emissions 
specifications for point sources of NOX in the H/GA as a 
part of the Texas 1-hour ozone SIP under Part D of the Act because 
Texas is relying on the NOX control measures to demonstrate 
attainment of the 1-hour ozone standard in the H/GA nonattainment area.

7. What Is the Compliance Schedule for Point Sources of 
NOX, in the H/GA Area Based Upon the December 22, 2000, 
SIP Revision, That We Are Approving?

    The following table contains a summary of the affected sources and 
their compliance schedules for attainment demonstration purposes that 
we are approving for point sources in the H/GA.

                           Table IV.--Affected Sources of NOX and Compliance Schedules
----------------------------------------------------------------------------------------------------------------
                 Sources                             Compliance schedule               Additional information
----------------------------------------------------------------------------------------------------------------
Utility Electric Generation..............  March 31, 2003.........................  Investor-owned; first 46% of
                                                                                     total required NOX
                                                                                     reductions.
Utility Electric Generation..............  March 31, 2004.........................  Investor-owned; the next 46%
                                                                                     required NOX reductions.
Utility Electric Generation..............  March 31, 2007.........................  Investor-owned; final
                                                                                     required NOX reductions.
Industrial, Commercial, and Institutional  March 31, 2004.........................  First 44% of required NOX
 Combustion Sources.                                                                 reductions.
Industrial, Commercial, and Institutional  March 31, 2005.........................  Next 45% of required NOX
 Combustion Sources.                                                                 reductions.
Industrial, Commercial, and Institutional  March 31, 2007.........................  Final NOX reductions.
 Combustion Sources.
Boilers, Process Heaters, and Stationary   March 31, 2005.........................  In cap and trade program.
 Engines at Minor Sources.
Boilers, Process Heaters, and Stationary   March 31, 2005.........................  Not in cap and trade
 Engines at Minor Sources.                                                           program.
----------------------------------------------------------------------------------------------------------------

    We are of the opinion that the above listed compliance dates and 
time-table combined with the cap and trade provisions of the rule offer 
operational flexibility to the affected point sources in the H/GA. We 
are approving the above-listed compliance dates for point sources of 
NOX in the H/GA as a part of the Texas 1-hour ozone SIP 
under Part D of the Act because Texas is relying on the NOX 
control measures to demonstrate attainment of the 1-hour

[[Page 57240]]

ozone standard in the H/GA nonattainment area.

8. What Are the NOX Emissions Reductions for Point 
Sources of NOX, in the H/GA Area Based Upon the December 
22, 2000, SIP Revision, That We Are Approving?

    This rulemaking will control/reduce NOX emissions in the 
H/GA area in two phases or Tiers. We will refer to these two emission 
reduction phases as Tier I and Tier II Reductions. You can find a 
summary of the affected sources and their NOX emission 
reductions for attainment demonstration purposes, that we are approving 
for point sources in the H/GA area, in the following table.

  Table V.--Affected Point Sources, 1997 Emissions, and Their Emission
                         Reductions for the H/GA
------------------------------------------------------------------------
                                             1997 NOX
                                            emissions,     Tier I + Tier
                 Sources                   tons per day   II reductions,
                                               (tpd)           (tpd)
------------------------------------------------------------------------
Utility Boilers.........................          196.44             184
Turbines and Duct Burners...............          155.65             141
Process Heaters and Furnaces............          110.12              97
Internal Combustion Engines.............           86.37              75
Industrial Boilers......................           85.98              79
Other...................................           32.99              19
Overall Point Sources...................          667.55             595
------------------------------------------------------------------------

    The combined NOX emission reductions of Tier I and Tier 
II in the rulemaking will be 595 tpd or 89 percent, when compared to 
the 1997 emission levels. We are approving the overall NOX 
point source reductions in the H/GA as a part of the Texas 1-hour ozone 
SIP under Part D of the Act because Texas is relying on the 
NOX control measures to demonstrate attainment of the 1-hour 
ozone standard in the H/GA nonattainment area.

9. What Are the NOX Emission Specifications, for 
Stationary Diesel Engines or Stationary Dual-Fuel Engines, That We 
Are Approving?

    This rule revision requires reductions of NOX emissions 
from stationary diesel engines or stationary dual-fuel engines in the 
H/GA area. The following table contains a summary of the NOX 
emission specifications for stationary diesel engines in the H/GA area.

     Table VI.--Affected Sources and NOX Emission Specifications for
  Stationary Diesel Engines or Stationary Dual-Fuel Engines in the H/GA
                                  Area
------------------------------------------------------------------------
               Source                    NOX emission  specification
------------------------------------------------------------------------
Diesel engines in service after      11.0 gram/hp-hr.
 October 1, 2001: not modified,
 reconstructed, or relocated on or
 after October 1, 2001.
Rated less than 11 hp: modified,     7.0 gram/hp-hr.
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2004.
Rated less than 11 hp: modified,     5.0 gram/hp-hr.
 reconstructed, or relocated on or
 after October 1, 2004.
11 hp  rated  25 hp:      6.3 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2004.
11 hp  rated  25 hp:      5.0 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2004.
25 hp  rated  50 hp:      6.3 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2003.
25 hp  rated  50 hp:      5.0 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2003.
50 hp  rated  100 hp:     6.9 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2003.
50 hp  rated  100 hp:     5.0 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2003.
50 hp  rated  100 hp:     3.3 gram/hp-hr
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2007.
100 hp  rated  175 hp:    6.9 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2002.
100 hp  rated  175 hp:    4.5 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2002, but before
 October 1, 2006.
100 hp  rated  175 hp:    2.8 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2006.
175 hp  rated  300 hp:    6.9 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2002.
175 hp  rated  300 hp:    4.5 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2002, but before
 October 1, 2005.
175 hp  rated  300 hp:    2.8 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2005.
300 hp  rated  600 hp:    4.5 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2005.
300 hp  rated  600 hp:    2.8 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2005.
600 hp  rated  750 hp:    4.5 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2005.
600 hp  rated  750 hp:    2.8 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2005.
Rated  750 hp:            6.9 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2001, but before
 October 1, 2005.

[[Page 57241]]

 
Rated  750 hp:            4.5 gram/hp-hr.
 installed, modified,
 reconstructed, or relocated on or
 after October 1, 2005.
------------------------------------------------------------------------

    We are of the opinion that these emission specifications are in 
agreement with those found in Code of Federal Regulations (CFR), Title 
40, section 89.112, and EPA's Document Number 420-R-98-016 dated August 
1998, entitled ``Final Regulatory Impact Analysis: Control of Emissions 
from Nonroad Diesel Engines.'' We are also of the opinion that these 
NOX emission specifications will contribute to the 
attainment of the 1-hr ozone standard in the H/GA area. We are 
approving these stationary diesel engines or stationary dual-fuel 
engines rule revisions under Part D of the Act because Texas is relying 
on these NOX reductions to demonstrate attainment of the 1-
hour ozone standard in the H/GA 1-hr ozone nonattainment area.

10. What Is the Proposed Compliance Schedule Date for Stationary 
Diesel Engines in the H/GA Area Based on the May 30, 2001, SIP 
Revision?

    The compliance date for stationary diesel engines and stationary 
dual-fuel engines in the H/GA area is April 1, 2002. See sections 
117.520 and 117.534 of the proposed rule. We consider the April 1, 
2002, compliance date for stationary diesel engines and dual-fuel 
engines, in the H/GA area, to be as expeditious as practicable. We are 
approving these stationary diesel engines or stationary dual-fuel 
engines compliance schedules under Part D of the Act because Texas is 
relying on these NOX reductions to demonstrate attainment of 
the 1-hour ozone standard in the H/GA 1-hr ozone nonattainment area.

11. What Are the NOX Emissions Reductions for Stationary 
Diesel Engines in the H/GA Area Based on the May 30, 2001, SIP 
Revision, That We Are Approving?

    The estimated NOX emission reductions attributed to the 
stationary diesel engines or stationary dual-fuel engines that we are 
approving is 1.00 tpd.

12. What Are the NOX Emissions Specifications for Point 
Sources of NOX in the H/GA Area Based on the May 30, 
2001, SIP Revision, That We Are Approving?

    The following table contains a summary of the NOX 
emission specifications for attainment demonstration purposes that we 
are approving for point sources in the
H/GA.

    Table VII.--Affected Sources and NOX Emission Specifications for
                  Attainment Demonstration in the H/GA
------------------------------------------------------------------------
                                      NOX Emission Specification for
             Source                      Attainment Demonstration
------------------------------------------------------------------------
Utility Boilers, Gas-fired.....  0.020 lb/MMBtu.
Utility Boilers, Coal-fired or   0.040 lb/MMBtu.
 Oil-fired.
Auxiliary Steam Boilers........  0.010-0.036 lb/MMBtu.
Stationary Gas Turbines + Duct   0.015-0.150 lb/MMBtu.
 Burners in Turbine Exhaust.
------------------------------------------------------------------------

    We are of the opinion that NOX emission specifications 
listed in Table VII will contribute to attainment of the 1-hr ozone 
standard in the H/GA area. We are approving the above-listed 
NOX emissions specifications for affected point sources of 
NOX in the H/GA as a part of the Texas 1-hour ozone SIP 
under Part D of the Act because Texas is relying on the NOX 
control measures to demonstrate attainment of the 1-hour ozone standard 
in the H/GA nonattainment area.

13. What Is the Compliance Schedule For Utility Electric Generation 
Point Sources of NOX in the H/GA Area Based on the May 
30, 2001, SIP Revision, That We Are Approving?

    The following table contains a summary of the time-table/ 
compliance schedule for the affected utility electric generation point 
sources of NOX in the H/GA that we are approving.

                    Table VIII.--Affected Sources of NOX in the H/GA and Compliance Schedules
----------------------------------------------------------------------------------------------------------------
                 Sources                             Compliance schedule               Additional information
----------------------------------------------------------------------------------------------------------------
Utility Electric Generation..............  March 31, 2003.........................  At least 47% of total
                                                                                     required NOX reductions.
Utility Electric Generation..............  March 31, 2004.........................  At least 95% of total
                                                                                     required NOX reductions.
Utility Electric Generation..............  March 31, 2007.........................  Demonstrate compliance with
                                                                                     system cap limits of
                                                                                     117.108.
----------------------------------------------------------------------------------------------------------------

    We are of the opinion that the above-listed compliance dates and 
time-table for affected sources offer operational flexibility to the 
rule. We are approving the above-listed compliance dates for affected 
point sources of NOX in the H/GA as a part of the Texas 1-
hour ozone SIP under Part D of the Act because Texas is relying on the 
NOX control measures to demonstrate attainment of the 1-hour 
ozone standard in the H/GA nonattainment area.

[[Page 57242]]

14. What Are the NOX Emissions Specifications in the ICI 
Source Category for Attainment Demonstration Within the H/GA Area, 
Based on the May 30, 2001, SIP Revision, That We Are Approving?

    You can find proposed NOX emissions specifications for 
the ICI source category within the H/GA for attainment demonstration 
purposes in the H/GA in the following table.

     Table IX.--Affected Industrial, Commercial, and Institutional Combustion Sources and Their NOX Emission
                             Specifications for Attainment Demonstration in the H/GA
----------------------------------------------------------------------------------------------------------------
                  Source                          NOX Emission specification for attainment demonstration
----------------------------------------------------------------------------------------------------------------
Stationary, reciprocating internal         0.60 gram/hp-hr.
 combustion engines: gas-fired rich-burn
 firing on landfill gas.
Stationary, reciprocating internal         0.17 gram/hp-hr.
 combustion engines: gas-fired rich-burn
 not firing on landfill gas.
Stationary, reciprocating internal         0.60 gram/hp-hr.
 combustion engines: gas-fired lean-burn
 firing on landfill gas.
Stationary, reciprocating internal         0.50 gram/hp-hr.
 combustion engines: gas-fired lean-burn
 not firing on landfill gas.
Dual fuel engines with initial start of    5.83 gram/hp-hr.
 operation on or before December 31, 2000.
Dual fuel engines with initial start of    0.50 gram/hp-hr.
 operation after December 31, 2000.
Gas-fired boilers........................  0.010--0.036 lb/MMBtu.
Fluid catalytic cracking units. Includes   13 ppm @ zero percent O2, dry basis.
 CO boilers, CO furnaces, and catalyst
 regenerator vents.
Boilers and industrial furnaces..........  0.015--0.030 lb/MMBtu.
Coke-fired boilers.......................  0.057 lb/MMBtu.
Wood fuel-fired boilers..................  0.046 lb/MMBtu.
Rice hull-fired boilers..................  0.089 lb/MMBtu.
Oil-fired boilers........................  2.0 lb/1,000 gallons of oil burned.
Process heaters..........................  0.010--0.036 lb/MMBtu.
Stationary gas turbines..................  0.015--0.15 lb/MMBtu.
Duct burners in turbine exhaust ducts....  0.015 lb/MMBtu.
Pulping liquor recovery furnaces.........  0.050 lb/MMBtu or 1.08 lb/ADTP.
Lime kilns...............................  0.66 lb/ton of CaO.
Lightweight aggregate kilns..............  0.76 lb/ton of product.
Metallurgical heat treat furnaces........  0.087 lb/MMBtu.
Metallurgical reheat furnaces............  0.062 lb/MMBtu.
Incinerators.............................  0.030 lb/MMBtu.
----------------------------------------------------------------------------------------------------------------

    We are approving the above-listed NOX emissions 
specifications for point sources of NOX in the H/GA as a 
part of the Texas 1-hour ozone SIP under Part D of the Act because 
Texas is relying on the NOX control measures to demonstrate 
attainment of the 1-hour ozone standard in the H/GA nonattainment area.

15. What Is the Compliance Schedule for Affected ICI Sources of 
NOX in the H/GA Area Based on the May 30, 2001, SIP 
Revision That We Are Approving?

    This rule revision offers a phased-in approach concerning the 
emission reductions and compliance schedule for point sources of 
NOX in the H/GA area. The following table contains a summary 
of the time-table/compliance schedule for the affected ICI sources of 
NOX in the H/GA area.

  Table X.--Affected ICI Sources of NOX in the H/GA Area and Compliance
                                Schedules
------------------------------------------------------------------------
                                      Compliance          Additional
             Sources                   schedule           information
------------------------------------------------------------------------
ICI sources.....................  March 31, 2004....  At least 39% of
                                                       total required
                                                       NOX reductions.
ICI sources.....................  March 31, 2005....  At least 67% of
                                                       total required
                                                       NOX reductions.
ICI sources.....................  March 31, 2006....  At least 78% of
                                                       total required
                                                       NOX reductions.
ICI sources.....................  March 31, 2007....  Demonstrate
                                                       compliance with
                                                       system cap limits
                                                       of 117.210.
------------------------------------------------------------------------

    We are approving the above-listed compliance dates for affected ICI 
sources of NOX in the H/GA as a part of the Texas 1-hour 
ozone SIP under Part D of the Act because Texas is relying on the 
NOX control measures to demonstrate attainment of the 1-hour 
ozone standard in the H/GA nonattainment area.

16. What Are the NOX Emissions Reductions Based on the 
May 30, 2001, SIP Revision, That We Are Approving?

    This rulemaking will control/reduce NOX emissions in the 
H/GA area in two phases or Tiers. We will refer to these two emission 
reduction phases as Tier I and Tier II Reductions. The following Table 
contains a summary of the 1997 NOX emissions and the May 30, 
2001, emission reductions for each point source category in the H/GA 
area that we are approving.

[[Page 57243]]



Table XI.--Affected Point Sources, 1997 Emissions, and Proposed Emission
                         Reductions for the H/GA
------------------------------------------------------------------------
                                             1997 NOX
                                            emissions,     Tier I + Tier
                 Sources                   tons per day   II reductions,
                                               (tpd)           (tpd)
------------------------------------------------------------------------
Utility Boilers.........................          196.44             176
Turbines and Duct Burners...............          155.65             141
Process Heaters and Furnaces............          110.12              97
Internal Combustion Engines.............           86.37              77
Industrial Boilers......................           85.98              79
Other...................................           32.99              19
Overall Point Sources...................          667.55             588
------------------------------------------------------------------------

    The combined NOX emission reductions of Tier I and Tier 
II in this SIP revision will be 588 tpd or 88 percent, when compared to 
the 1997 emission levels. The change in overall point sources 
NOX reductions in Table XI, as compared with that of Table V 
in this document, is due to revisions to the requirements of 
subsections 117.106(c)(1) and 117.206(c)(9)(D).

17. When Did the State Adopt the Final Version of the Rule for 
Point Sources of NOX in the H/GA Area?

    The State adopted the final version of the rule for point sources 
of NOX in the H/GA area on September 26, 2001.

18. Is There a Substantial Difference Between the State's Proposed 
and Final Versions of the Rule for Point Sources of NOX 
in the H/GA Area?

    For parallel processing purposes, there is no substantial 
difference between the State's proposed and final versions of the rule 
for point sources of NOX in the H/GA area with regard to 
actions number three, four, and five of this document. We did not 
review actions number one and two through the parallel processing 
mechanism. There is no substantial difference between the State's 
proposed and final versions of the rule for point sources of 
NOX in the H/GA area with regard to actions number one and 
two of this document.

19. What Are NOX?

    Nitrogen oxides belong to the group of criteria air pollutants. The 
NOX result from burning fuels, including gasoline and coal. 
Nitrogen oxides react with volatile organic compounds (VOC) to form 
ozone or smog, and are also major components of acid rain.

20. What Is a Nonattainment Area?

    A nonattainment area is a geographic area in which the level of a 
criteria air pollutant is higher than the level allowed by Federal 
standards. A single geographic area may have acceptable levels of one 
criteria air pollutant but unacceptable levels of one or more other 
criteria air pollutants; thus, a geographic area can be attainment for 
one criteria pollutant and nonattainment for another criteria pollutant 
at the same time.

21. What Are Definitions of Major Sources for NOX?

    Section 302 of the Act generally defines ``major stationary 
source'' as a facility or source of air pollution which emits, when 
uncontrolled, 100 tons per year (tpy) or more of air pollution. This 
general definition applies unless another specific provision of the Act 
explicitly defines major source differently.
    According to section 182(d) of the Act, a major source in a severe 
nonattainment area is a source that emits, when uncontrolled, 25 tpy or 
more of NOX. The H/GA area is a severe ozone nonattainment 
area, so the major source size for the H/GA area is 25 tpy or more, 
when uncontrolled. This rulemaking will regulate NOX 
emissions from major stationary sources in the H/GA area.

22. What Is a State Implementation Plan?

    Section 110 of the Act requires States to develop air pollution 
regulations and control strategies to ensure that State air quality 
meets the NAAQS that EPA has established. Under section 109 of the Act, 
EPA established the NAAQS to protect public health. The NAAQS address 
six criteria pollutants. These criteria pollutants are: carbon 
monoxide, nitrogen dioxide, ozone, lead, particulate matter, and sulfur 
dioxide.
    Each State must submit these regulations and control strategies to 
us for approval and incorporation into the federally enforceable SIP. 
Each State has a SIP designed to protect air quality. These SIPs can be 
extensive, containing State regulations or other enforceable documents 
and supporting information such as emission inventories, monitoring 
networks, and modeling demonstrations.

23. What Does Federal Approval of a SIP Mean to Me?

    A State may enforce State regulations before and after we 
incorporate those regulations into a federally approved SIP. After we 
incorporate those regulations into a federally approved SIP, both EPA 
and the public may also take enforcement action against violators of 
these regulations.

24. What Areas in Texas Will the Stationary Diesel Engines or 
Stationary Dual-Fuel Engines Rule Affect That We Are Approving 
Based on the May 30, 2001, SIP Revision Affect?

    The following table contains a list of counties affected by this 
SIP revision concerning the stationary diesel engines or dual-fuel 
engines that we are parallel processing for approval.

    Table XII.--Rule Log Number and Affected Areas for Texas NOX SIP
------------------------------------------------------------------------
                 Rule log                          Affected areas
------------------------------------------------------------------------
2001-007B-117-AI Stationary diesel engines  Brazoria, Chambers, Fort
 and dual-fuel engines provisions.           Bend, Galveston, Harris,
                                             Liberty, Montgomery, and
                                             Waller counties.
------------------------------------------------------------------------

    If you are in one of these Texas counties, you should refer to the 
Texas NOX rules to determine if and how today's action will 
affect you.

25. What Areas in Texas Will Be Affected by the Rule for Point 
Sources of NOX, That We Are Approving Based on the May 
30, 2001, SIP Revision?

    The following table contains a list of counties affected by this 
SIP revision concerning point sources of NOX that we are 
parallel processing for approval.

[[Page 57244]]



     Table XIII.--Rule Log Number and Affected Areas for Texas NOX SIP
------------------------------------------------------------------------
               Rule log No.                        Affected areas
------------------------------------------------------------------------
2001-007B-117-AI ICI and electric utility   Brazoria, Chambers, Fort
 sources.                                    Bend, Galveston, Harris,
                                             Liberty, Montgomery, and
                                             Waller counties
------------------------------------------------------------------------

Administrative Requirements

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and therefore is not 
subject to review by the Office of Management and Budget. For this 
reason, this action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This 
proposed action merely approves state law as meeting federal 
requirements and imposes no additional requirements beyond those 
imposed by state law. Accordingly, the Administrator certifies that 
this rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act (5 U.S.C. 
601 et. seq.). Because this rule approves pre-existing requirements 
under state law and does not impose any additional enforceable duty 
beyond that required by state law, it does not contain any unfunded 
mandate or significantly or uniquely affect small governments, as 
described in the Unfunded Mandates Reform Act of 1995 (Public Law 104-
4). For the same reason, this rule also does not significantly or 
uniquely affect the communities of tribal governments, as specified by 
Executive Order 13084 (63 FR 27655, May 10, 1998). This rule will not 
have substantial direct effects on the States, on the relationship 
between the national government and the States, or on the distribution 
of power and responsibilities among the various levels of government, 
as specified in Executive Order 13132 (64 FR 43255, August 10, 1999), 
because it merely approves a state rule implementing a federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the Clean Air Act. This rule 
also is not subject to Executive Order 13045 (62 FR 19885, April 23, 
1997), because it is not economically significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. The rule does not 
involve special consideration of environmental justice related issues 
as required by Executive Order 12898 (59 FR 7629, February 16, 1994). 
As required by section 3 of Executive Order 12988 (61 FR 4729, February 
7, 1996), in issuing this rule, EPA has taken the necessary steps to 
eliminate drafting errors and ambiguity, minimize potential litigation, 
and provide a clear legal standard for affected conduct. The EPA has 
complied with Executive Order 12630 (53 FR 8859, March 15, 1988) by 
examining the takings implications of the rule in accordance with the 
``Attorney General's Supplemental Guidelines for the Evaluation of Risk 
and Avoidance of Unanticipated Takings.'' This rule does not impose an 
information collection burden under the provisions of the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Nitrogen dioxide, Nitrogen 
oxides, Nonattainment, Ozone, Reporting and recordkeeping requirements, 
Volatile organic compounds.

    Dated: October 15, 2001.
Gregg A. Cooke,
Regional Administrator, Region 6.

    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 et seq.

Subpart SS--Texas

    2. In Sec. 52.2270 the entry for Chapter 117 in the table in 
paragraph (c) is amended as follows:
    a. Under Subchapter A, revising the entry for section 117.10;
    b. Under Subchapter B, revising the entries for sections 117.101, 
117.103, 117.105, 117.106, 117.107, 117.108, 117.111, 117.113, 117.116, 
117.119, 117.121, 117.138, 117.201, 117.203, 117.205, 117.206, 117.207, 
117.208, 117.211, 117.213, 117.216, 117.219, and 117.221, and adding 
new entries for sections 117.110, 117.114, 117.210, and 117.214;
    c. Under Subchapter D, adding new entries for sections 117.471, 
117.473, 117.475, 117.478, and 117.479;
    d. Under Subchapter E, revising entries for sections 117.510, 
117.520, and 117.570, and adding a new entry for section 117.534. The 
revisions and additions read as follows:


Sec. 52.2270  Identification of plan.

* * * * *
    (c) * * *

                                    EPA Approval Regulations in the Texas SIP
----------------------------------------------------------------------------------------------------------------
                                                                State
          State citation                Title/subject        submittal/     EPA approval        Explanation
                                                            approval date       date
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
                      Chapter 117 (Reg 7)--Control of Air Pollution From Nitrogen Compounds
                                                  Subchapter A
----------------------------------------------------------------------------------------------------------------
Section 117.10....................  Definitions..........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------

[[Page 57245]]

 
                              Subchapter B--Division 1--Utility Electric Generation
----------------------------------------------------------------------------------------------------------------
Section 117.101...................  Applicability........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.103...................  Exemptions...........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.105...................  Emission                   09/26/2001  [Insert 11-14-  .....................
                                     Specifications.                           01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.106...................  Emission                   09/26/2001  [Insert 11-14-  .....................
                                     Specifications for                        01 Federal
                                     Attainment                                  Register
                                     Demonstrations.                               cite.]
Section 117.107...................  Alternative System-        09/26/2001  [Insert 11-14-  .....................
                                     Wide Emission                             01 Federal
                                     Specifications.                             Register
                                                                                   cite.]
Section 117.108...................  System Cap...........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.110...................  Change Ownership--         09/26/2001  [Insert 11-14-  New.
                                     System Cap.                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.111...................  Initial Demonstration      09/26/2001  [Insert 11-14-  .....................
                                     of Compliance.                            01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.113...................  Continuous                 09/26/2001  [Insert 11-14-  .....................
                                     Demonstration of                          01 Federal
                                     Compliance.                                 Register
                                                                                   cite.]
Section 117.114...................  Emission Testing and       09/26/2001  [Insert 11-14-  New.
                                     Monitoring for the                        01 Federal
                                     Houston Galveston                           Register
                                     Attainment                                    cite.]
                                     Demonstration.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.116...................  Final Control Plan         09/26/2001  [Insert 11-14-  .....................
                                     Procedures for                            01 Federal
                                     Attainment                                  Register
                                     Demonstration                                 cite.]
                                     Emission
                                     Specifications.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.119...................  Notification, Record       09/26/2001  [Insert 11-14-  .....................
                                     keeping, and                              01 Federal
                                     Reporting                                   Register
                                     Requirements.                                 cite.]
Section 117.121...................  Alternative Case           09/26/2001  [Insert 11-14-  .....................
                                     Specific                                  01 Federal
                                     Specifications.                             Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.138...................  System Cap...........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.201...................  Applicability........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]

[[Page 57246]]

 
Section 117.203...................  Exemptions...........      09/26/2001  [Insert 11-14-  .....................
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.205...................  Emission                   09/26/2001  [Insert 11-14-  .....................
                                     Specifications for                        01 Federal
                                     Reasonably Available                        Register
                                     Control Technology                            cite.]
                                     (RACT).
Section 117.206...................  Emission                   09/26/2001  [Insert 11-14-  .....................
                                     Specifications for                        01 Federal
                                     Attainment                                  Register
                                     Demonstrations.                               cite.]
Section 117.207...................  Alternative Plant-         09/26/2001  [Insert 11-14-  .....................
                                     Wide Emission                             01 Federal
                                     Specifications.                             Register
                                                                                   cite.]
Section 117.208...................  Operating                  09/26/2001  [Insert 11-14-  .....................
                                     Requirements.                             01 Federal
                                                                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.210...................  System Cap...........      09/26/2001  [Insert 11-14-  New.
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.211...................  Initial Demonstration      09/26/2001        11-14-01  .....................
                                     of Compliance.
Section 117.213...................  Continuous                 09/26/2001  [Insert 11-14-  .....................
                                     Demonstration of                          01 Federal
                                     Compliance.                                 Register
                                                                                   cite.]
Section 117.214...................  Emission Testing and       09/26/2001  [Insert 11-14-  New.
                                     Monitoring for the                        01 Federal
                                     Houston Galveston                           Register
                                     Attainment                                    cite.]
                                     Demonstration.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.216...................  Final Control Plan         09/26/2001  [Insert 11-14-  .....................
                                     Procedures for                            01 Federal
                                     Attainment                                  Register
                                     Demonstration                                 cite.]
                                     Emission
                                     Specifications.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.219...................  Notification,              09/26/2001  [Insert 11-14-  .....................
                                     Recordkeeping, and                        01 Federal
                                     Reporting                                   Register
                                     Requirements.                                 cite.]
Section 117.221...................  Alternative Case           09/26/2001  [Insert 11-14-  .....................
                                     Specific                                  01 Federal
                                     Specifications.                             Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.471...................  Applicability........      09/26/2001  [Insert 11-14-  New.
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.473...................  Exemptions...........      09/26/2001  [Insert 11-14-  New.
                                                                               01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.475...................  Emission                   09/26/2001  [Insert 11-14-  New.
                                     Specifications.                           01 Federal
                                                                                 Register
                                                                                   cite.]
Section 117.478...................  Operating                  09/26/2001        11-14-01  New.
                                     Requirements.
Section 117.479...................  Monitoring,                09/26/2001  [Insert 11-14-  New.
                                     Recordkeeping, and                        01 Federal
                                     Reporting                                   Register
                                     Requirements.                                 cite.]
----------------------------------------------------------------------------------------------------------------
 

[[Page 57247]]

 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.510...................  Compliance Schedule        09/26/2001  [Insert 11-14-  .....................
                                     for Utility Electric                      01 Federal
                                     Generation in Ozone                         Register
                                     Nonattainment Areas.                          cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.520...................  Compliance Schedule        09/26/2001  [Insert 11-14-  .....................
                                     for Industrial,                           01 Federal
                                     Commercial, and                             Register
                                     Institutional,                                cite.]
                                     Combustion Sources
                                     in ozone
                                     Nonattainment Areas.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.534...................  Compliance Schedule        09/26/2001  [Insert 11-14-  New.
                                     for Boilers, Process                      01 Federal
                                     Heaters, Stationary                         Register
                                     Engines, and Gas                              cite.]
                                     Turbines at Minor
                                     Sources.
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------
Section 117.570...................  Use of Emissions           09/26/2001  [Insert 11-14-  .....................
                                     Credits for                               01 Federal
                                     Compliance.                                 Register
                                                                                   cite.]
----------------------------------------------------------------------------------------------------------------
 
*                  *                  *                  *                  *                  *
                                                        *
----------------------------------------------------------------------------------------------------------------

[FR Doc. 01-27584 Filed 11-13-01; 8:45 am]
BILLING CODE 6560-5-P