[Federal Register Volume 72, Number 37 (Monday, February 26, 2007)]
[Proposed Rules]
[Pages 8329-8332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-3204]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2007-0015; FRL-8281-5]


Approval and Promulgation of Implementation Plans; State of Iowa

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP) 
submission by the State of Iowa which revises the air quality rules to 
include portions of the Federal New Source Review (NSR) regulations 
promulgated by EPA in December 2002. These revisions do not include the 
portion of the rules for nonattainment areas as there are currently no 
nonattainment areas in the State of Iowa; therefore, those portions of 
the State rules remain in effect. The definitions and applicability 
portions of the Prevention of Significant Deterioration (PSD) program 
were written into the State rules while the remaining portions of the 
PSD program were adopted by reference. All references to clean units 
and pollution control projects are not adopted by reference. Iowa has 
also not adopted portions of the Federal rule relating to exceptions 
from recordkeeping requirements.

DATES: Comments on this proposed action must be received in writing by 
March 28, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-
OAR-2007-0015 by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. E-mail: [email protected].
    3. Mail: Heather Hamilton, Environmental Protection Agency, Air 
Planning and Development Branch, 901 North 5th Street, Kansas City, 
Kansas 66101.
    4. Hand Delivery or Courier. Deliver your comments to Heather 
Hamilton, Environmental Protection Agency, Air Planning and Development 
Branch, 901 North 5th Street, Kansas City, Kansas 66101. Such 
deliveries are only accepted during the Regional Office's normal hours 
of operation. The Regional Office's official hours of business are 
Monday through Friday, 8 to 4:30, excluding legal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R07-OAR-
2007-0015. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
http://www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. The http://www.regulations.gov Web site 
is an ``anonymous access'' system, which means EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you send an e-mail comment directly to EPA without 
going through http://www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any

[[Page 8330]]

disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses.
    Docket: All documents in the electronic docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the Environmental 
Protection Agency, Air Planning and Development Branch, 901 North 5th 
Street, Kansas City, Kansas. EPA requests that you contact the person 
listed in the FOR FURTHER INFORMATION CONTACT section to schedule your 
inspection. The interested persons wanting to examine these documents 
should make an appointment with the office at least 24 hours in 
advance.

FOR FURTHER INFORMATION CONTACT: Heather Hamilton at (913) 551-7039, or 
by e-mail at [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This section provides 
additional information by addressing the following questions:

    What is a SIP?
    What is the Federal approval process for a SIP?
    What does Federal approval of a State regulation mean to me?
    What is the background for this action?
    What is being addressed in this document?
    Have the requirements for approval of a SIP revision been met?
    What action is EPA proposing?

What is a SIP?

    Section 110 of the Clean Air Act (CAA) requires States to develop 
air pollution regulations and control strategies to ensure that State 
air quality meets the national ambient air quality standards 
established by EPA. These ambient standards are established under 
section 109 of the CAA, and they currently address six criteria 
pollutants. These 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 Federally-approved SIP protects air quality primarily by 
addressing air pollution at its point of origin. These SIPs can be 
extensive, containing State regulations or other enforceable documents 
and supporting information such as emission inventories, monitoring 
networks, and modeling demonstrations.

What is the Federal approval process for a SIP?

    In order for State regulations to be incorporated into the 
Federally-enforceable SIP, States must formally adopt the regulations 
and control strategies consistent with State and Federal requirements. 
This process generally includes a public notice, public hearing, public 
comment period, and a formal adoption by a State-authorized rulemaking 
body.
    Once a State rule, regulation, or control strategy is adopted, the 
State submits it to us for inclusion into the SIP. We must provide 
public notice and seek additional public comment regarding the proposed 
Federal action on the State submission. If adverse comments are 
received, they must be addressed prior to any final Federal action by 
us.
    All State regulations and supporting information approved by EPA 
under section 110 of the CAA are incorporated into the Federally-
approved SIP. Records of such SIP actions are maintained in the Code of 
Federal Regulations (CFR) at title 40, part 52, entitled ``Approval and 
Promulgation of Implementation Plans.'' The actual State regulations 
which are approved are not reproduced in their entirety in the CFR 
outright but are ``incorporated by reference,'' which means that we 
have approved a given State regulation with a specific effective date.

What does Federal approval of a State regulation mean to me?

    Enforcement of the State regulation before and after it is 
incorporated into the Federally-approved SIP is primarily a State 
responsibility. However, after the regulation is Federally approved, we 
are authorized to take enforcement action against violators. Citizens 
are also offered legal recourse to address violations as described in 
section 304 of the CAA.

What is the background for this action?

    The 2002 NSR Reform rules are part of EPA's implementation of parts 
C and D of title I of the CAA, 42 U.S.C. 7470-7515. Part C of title I 
of the CAA, 42 U.S.C. 7470-7492, is the Prevention of Significant 
Deterioration (PSD) program, which applies in areas that meet the 
National Ambient Air Quality Standards (NAAQS), also known as 
``attainment areas'' and in areas for which there is insufficient 
information to determine whether the area meets the NAAQS, also known 
as ``unclassifiable'' areas.
    Part D of Title I of the CAA, 42 U.S.C. 7501-7515, is the 
nonattainment New Source Review (NNSR) program, which applies in areas 
that are not in attainment of the NAAQS, also known as ``nonattainment 
areas.'' Collectively, the PSD and NNSR programs are referred to as the 
``New Source Review'' or NSR programs. EPA regulations implementing 
these programs are contained in 40 CFR 51.165, 51.166, 52.21, 52.24 and 
part 51, appendix S. The SIP submittal from the State of Iowa does not 
include the portion of the rules relating to NSR reform provisions for 
nonattainment areas as the State of Iowa currently has no areas 
designated nonattainment.
    The 2002 NSR Reform rules made changes to five areas of the NSR 
programs. In summary, the 2002 rules: (1) Provide a new method for 
determining baseline actual emissions; (2) adopt an actual-to-
projected-actual methodology for determining whether a major 
modification has occurred; (3) allow major stationary sources to comply 
with plantwide applicability limits (PALs) to avoid having a 
significant emission increase that triggers the requirements of the 
major NSR program; (4) provide a new applicability provision for 
emissions units that are designated clean units; and (5) exclude 
pollution control projects (PCPs).
    After the 2002 NSR Reform rules were finalized and effective, 
various petitioners challenged numerous aspects of the 2002 NSR Reform 
rules, along with portions of EPA's 1980 NSR rules (45 FR 5276, August 
7, 1980). On June 24, 2005, the District of Columbia Court of Appeals 
issued a decision on the challenges to the 2002 NSR Reform Rules. New 
York v. United States, 413 F.3d (DC Cir. 2005). In summary, the Court 
of Appeals for the District of Columbia vacated portions of the rules 
pertaining to clean units and pollution control projects, remanded a 
portion of the rules regarding exemption from recordkeeping, e.g., 40 
CFR 52.21(r)(6) and 40 CFR 51.166(r)(6), and let stand the other 
provisions included as part of the 2002 NSR Reform rules. EPA has not 
yet responded to the Court's remand regarding recordkeeping provisions.

[[Page 8331]]

What is being addressed in this document?

    EPA is proposing to approve the Iowa Department of Natural 
Resources' (IDNR) request to revise the Iowa SIP to include the PSD 
portion of the NSR regulations. In general, the Iowa revisions consist 
of incorporation by reference of substantial portions of the Federal 
Prevention of Significant Deterioration (PSD) rule and inclusion of 
other portions of the Federal rule almost verbatim. Iowa has not 
adopted provisions of the 2002 reform rule which were either vacated or 
remanded by the Court, as previously described. IDNR has identified 
portions of its rule which are at variance with the Federal rule and 
has provided conclusions with respect to equivalency of the State rule 
with the Federal requirements.
    Revisions to the Iowa Administrative Code (567-20.1 and 567-22.4) 
add language to reference the new Chapter 33 entitled ``Special 
Regulations and Construction Permit Requirements for Major Stationary 
Sources--Prevention of Significant Deterioration (PSD) of Air 
Quality.'' These revisions are informational in nature and do not 
include substantive requirements.
    Chapter 33 of the Iowa rules contains the substantive PSD rule 
revisions which include EPA's NSR reform rules as previously described. 
The Federal provisions are adopted as follows: (1) The definitions, 
applicability provisions, public participation procedures, and source 
obligation provisions (the requirements in 40 CFR 52.21(r) of the 
Federal rule with the exception of the provision in 40 CFR 52.21(r)(6) 
which exempts certain emissions changes from the record keeping 
requirements) are set forth in language which tracks the relevant 
language of the corresponding federal rules; and, (2) the remainder of 
the Federal PSD rules upheld by the Court are adopted by reference.
    The State's definition section (567-33.3(1)) contains several 
definitions with wording which differs from the wording in the Federal 
rule, but the differences are either not substantive or do not affect 
the stringency of the rule. These differences are described in the 
technical support document, and EPA believes that the differences do 
not affect the approvability of the rule. Another example of a 
difference is that the State does not incorporate by reference the 
Federal definitions relating to the clean unit exemption and pollution 
control project exclusion, which provisions were vacated by the court.
    The applicability section (567-33.3(2)) discusses the application 
of PSD program requirements as they apply to the construction of any 
new major stationary source, or any project at an existing major 
stationary source in an area designated as attainment or 
unclassifiable. This section extracts the language from 40 CFR 
51.166(a)(7), including the actual-to-projected-actual test for 
determining whether a modification is subject to the rule and other 
provisions of the Federal rule.
    The public participation procedures in the State rule (567-
33.3(17)) are substantially the same as the rules in the existing SIP. 
EPA believes that these procedures meet the corresponding requirements 
in 40 CFR 51.166.
    The following sections were adopted by reference as specified in 40 
CFR 52.21: Ambient air increments; Ambient air ceilings; Restrictions 
on area classifications; Redesignation; Stack heights; Exemptions; 
Control technology review; Source impact analysis; Air quality models; 
Air quality analysis; Source information, and Additional impact 
analyses.
    The provisions of the State rule relating to exclusions from 
increment consumption, sources impacting Federal Class I areas--
additional requirements, and innovative control technology adopt by 
reference the relevant portions of 40 CFR 51.166 except for the phrases 
that contain ``the plan may provide that,'' ``the plan provides that,'' 
``it shall also provide that,'' and ``mechanism whereby.'' These 
phrases are excluded to convert the language of 40 CFR 51.166 to 
substantive rules rather than minimum program requirements. The EPA 
provisions for plantwide applicability limitations are adopted by 
reference except that the term ``Administrator'' used in the Federal 
rule means ``the department of natural resources'' in the State rule. 
These provisions were reviewed by EPA for consistency with the Federal 
requirements and are acceptable.
    The reference to Clean Units and Pollution Control Projects as set 
forth in 40 CFR 52.21 and 51.166 are not adopted by reference. In 
addition, the provision of the Federal rule (40 CFR 52.21(r)(6)), which 
exempts certain projects from recordkeeping, is not adopted, so that 
recordkeeping requirements apply to all modifications which use the 
actual-to-projected-actual test to show nonapplicability. Iowa intended 
these deviations from the Federal rule to address the Court ruling on 
EPA's reform rules, and EPA believes they are approvable.

Have the requirements for approval of a SIP revision been met?

    The State submittal has met the public notice requirements for SIP 
submissions in accordance with 40 CFR 51.102. The submittal also 
satisfied the completeness criteria of 40 CFR part 51, appendix V. In 
addition, as explained above and in more detail in the technical 
support document that is part of this document, EPA believes that the 
revisions meet the substantive SIP requirements of the CAA, including 
section 110 and implementing regulations.

What action is EPA proposing?

    We are proposing to approve revisions to Iowa's rule at Chapter 20, 
``Scope of Title-Definitions-Forms-Rules of Practice,'' and Chapter 22, 
``Controlling Pollution,'' as the revisions relate to the NSR 
regulations. We are also proposing to approve new Chapter 33, ``Special 
Regulations and Construction Permit Requirements for Major Stationary 
Sources--Prevention of Significant Deterioration (PSD) of Air 
Quality.'' It should be noted that IDNR has no nonattainment areas so 
those portions of the NSR reform rules are not being addressed with 
this rulemaking.

Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
proposed 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 proposes to approve State law as meeting Federal 
requirements and imposes no additional requirements beyond those 
imposed by State law. Accordingly, the Administrator certifies that the 
proposed approvals in this proposed 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 
proposes to approve 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 (Pub. L. 104-4).
    This proposed rule also does not have tribal implications because 
it will not have a substantial direct effect on one or

[[Page 8332]]

more Indian tribes, on the relationship between the Federal Government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal Government and Indian tribes, as specified by 
Executive Order 13175 (65 FR 67249, November 9, 2000). This action also 
does not have Federalism implications because it does 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). This 
action merely proposes to approve a State rule implementing a Federal 
standard, and does not alter the relationship or the distribution of 
power and responsibilities established in the CAA. This proposed rule 
also is not subject to Executive Order 13045 ``Protection of Children 
from Environmental Health Risks and Safety Risks'' (62 FR 19885, April 
23, 1997), because it approves a State rule implementing a Federal 
Standard.
    In reviewing SIP submissions, EPA's role is to approve State 
choices, provided that they meet the criteria of the CAA. 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 CAA. 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. This proposed 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, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: February 14, 2007.
John B. Askew,
Regional Administrator, Region 7.
[FR Doc. E7-3204 Filed 2-23-07; 8:45 am]
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