[Federal Register Volume 73, Number 129 (Thursday, July 3, 2008)]
[Rules and Regulations]
[Pages 38122-38124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-14884]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2008-0337; FRL-8565-2]


Revisions to the California State Implementation Plan, South 
Coast Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve revisions to the 
South Coast Air Quality Management District (SCAQMD) portion of the 
California State Implementation Plan (SIP). These revisions concern 
oxides of nitrogen (NOX) and oxides of sulfur 
(SOX) emissions from facilities emitting 4 tons or more per 
year of NOX or SOX in the year 1990 or any 
subsequent year under the SCAQMD's Regional Clean Air Incentives Market 
(RECLAIM) program. We are approving local rules that regulate these 
emission sources under the Clean Air Act as amended in 1990 (CAA or the 
Act).

DATES: This rule is effective on September 2, 2008 without further 
notice, unless EPA receives adverse comments by August 4, 2008. If we 
receive such comments, we will publish a timely withdrawal in the 
Federal Register to notify the public that this direct final rule will 
not take effect.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2008-0337, by one of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the on-
line instructions.
    2. E-mail: [email protected].
    3. Mail or deliver: Andrew Steckel (Air-4), U.S. Environmental 
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 
94105-3901.
    Instructions: All comments will be included in the public docket 
without change and may be made available online at www.regulations.gov, 
including any personal information provided, unless the comment 
includes Confidential Business Information (CBI) or other information 
whose disclosure is restricted by statute. Information that you 
consider CBI or otherwise protected should be clearly identified as 
such and should not be submitted through www.regulations.gov or e-mail. 
www.regulations.gov is an ``anonymous access'' system, and EPA will not 
know your identity or contact information unless you provide it in the 
body of your comment. If you send e-mail directly to EPA, your e-mail 
address will be automatically captured and included as part of the 
public comment. 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: The index to the docket for this action is available 
electronically at www.regulations.gov and in hard copy at EPA Region 
IX, 75 Hawthorne Street, San Francisco, California. While all documents 
in the docket are listed in the index, some information may be publicly 
available only at the hard copy location (e.g., copyrighted material), 
and some may not be publicly available in either location (e.g., CBI). 
To inspect the hard copy materials, please schedule an appointment 
during normal business hours with the contact listed in the FOR FURTHER 
INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Lily Wong, EPA Region IX, (415) 947-
4114, [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and 
``our'' refer to EPA.

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rule revisions?
II. EPA's Evaluation and Action
    A. How is EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Public Comment and Final Action
III. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules we are approving with the dates that they 
were adopted by the SCAQMD and submitted by the California Air 
Resources Board (CARB).

[[Page 38123]]



                                            Table 1.--Submitted Rules
----------------------------------------------------------------------------------------------------------------
               Local agency                 Rule No.             Rule title               Adopted     Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD...................................       2004  Requirements....................     04/06/07     03/07/08
SCAQMD...................................       2007  Trading Requirements............     04/06/07     03/07/08
SCAQMD...................................       2010  Administrative Remedies and          04/06/07     03/07/08
                                                       Sanctions.
----------------------------------------------------------------------------------------------------------------

    On April 17, 2008, this rule submittal was found to meet the 
completeness criteria in 40 CFR Part 51 Appendix V, which must be met 
before formal EPA review.

B. Are there other versions of these rules?

    Table 2 lists the previous versions of these rules approved into 
the SIP.

                                 Table 2.--Current SIP Approved Version of Rules
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            Rule No.                 Rule title       Adopted     Submitted          Approved FR citation
----------------------------------------------------------------------------------------------------------------
2004...........................  Requirements.....     05/11/01     05/31/01  09/04/03, 68 FR 52512
2007...........................  Trading               05/06/05     10/20/05  08/29/06, 71 FR 51120
                                  Requirements.
2010...........................  Administrative        01/07/05     07/15/05  08/29/06, 71 FR 51120
                                  Remedies and
                                  Sanctions.
----------------------------------------------------------------------------------------------------------------

C. What is the purpose of the submitted rule revisions?

    NOX helps produce ground-level ozone, smog and 
particulate matter, which harm human health and the environment. 
Section 110(a) of the CAA requires States to submit regulations that 
control NOX emissions. The RECLAIM program was initially 
adopted by SCAQMD in October 1993. The program established for many of 
the largest NOX and SOX facilities in the South 
Coast Air Basin a regional NOX and SOX emissions 
cap and trade program, with the emissions caps declining over time. The 
program was designed to provide incentives for sources to reduce 
emissions and advance pollution control technologies by giving sources 
added flexibility in meeting emission reduction requirements. A RECLAIM 
source's emissions may not exceed its holding of RECLAIM Trading 
Credits (RTCs) in any compliance year. A RECLAIM source may comply with 
this requirement by installing control equipment, modifying their 
activities, or purchasing RTCs from other facilities.
    The primary purposes of the amendments to the RECLAIM rules were to 
provide some relief on reporting and to improve clarity and 
enforceability of the rules. The amendments to Rule 2004 relieve 
sources from submitting quarterly certification reports when there are 
zero emissions. The amendments to Rule 2007 clarify the reporting 
requirements for certain contractual agreements called forward 
contracts and address enforceability of the program to parties who 
participate in trading but do not live in California. The amendments to 
Rule 2010 clarify that if a facility has excess emissions violations 
and changes operators, the old and new operators are both liable for 
past violations. The amendments include a mechanism to assign 
liability. EPA's technical support document (TSD) has more information 
about these rules.

II. EPA's Evaluation and Action

A. How is EPA evaluating the rules?

    Generally, SIP rules must be enforceable (see section 110(a) of the 
Act), must require Reasonably Available Control Technology (RACT) for 
each category of sources covered by a Control Techniques Guidelines 
(CTG) document as well as each major source in nonattainment areas (see 
sections 182(a)(2) and 182(f)), and must not relax existing 
requirements (see sections 110(l) and 193). The SCAQMD regulates an 
ozone nonattainment area (see 40 CFR part 81), so Regulation XX (Rules 
2000 through 2020) must fulfill RACT.
    Guidance and policy documents that we use to help evaluate 
enforceability and RACT requirements consistently include the 
following:
    1. ``State Implementation Plans; Nitrogen Oxides Supplement to the 
General Preamble; Clean Air Act Amendments of 1990 Implementation of 
Title I; Proposed Rule,'' (the NOX Supplement), 57 FR 55620, 
November 25, 1992.
    2. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and 
Deviations,'' EPA, May 25, 1988 (the Bluebook).
    3. ``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
    4. ``Improving Air Quality with Economic Incentive Programs,'' EPA-
452/R01-001 (the EIP guidance), January 2001.

B. Do the rules meet the evaluation criteria?

    We believe these rules are consistent with the relevant policy and 
guidance regarding enforceability, SIP relaxations, and economic 
incentive programs. The TSD has more information on our evaluation.

C. Public Comment and Final Action

    As authorized in section 110(k)(3) of the Act, EPA is fully 
approving the submitted rules because we believe they fulfill all 
relevant requirements. We do not think anyone will object to this 
approval, so we are finalizing it without proposing it in advance. 
However, in the Proposed Rules section of this Federal Register, we are 
simultaneously proposing approval of the same submitted rules. If we 
receive adverse comments by August 4, 2008, we will publish a timely 
withdrawal in the Federal Register to notify the public that the direct 
final approval will not take effect and we will address the comments in 
a subsequent final action based on the proposal. If we do not receive 
timely adverse comments, the direct final approval will be effective 
without further notice on September 2, 2008. This will incorporate 
these rules into the federally enforceable SIP.
    Please note that if EPA receives adverse comment on an amendment, 
paragraph, or section of this rule and if that provision may be severed 
from the remainder of the rule, EPA may adopt as final those provisions 
of the rule that are not the subject of an adverse comment.

[[Page 38124]]

III. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).

    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by September 2, 2008. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this action for the purposes of 
judicial review nor does it extend the time within which a petition for 
judicial review may be filed, and shall not postpone the effectiveness 
of such rule or action. This action may not be challenged later in 
proceedings to enforce its requirements (see section 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements.

    Dated: April 22, 2008.
Laura Yoshii,
Acting Regional Administrator, Region IX.

0
Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart F--California

0
2. Section 52.220 is amended by adding paragraph (c)(354) to read as 
follows:


Sec.  52.220  Identification of plan.

* * * * *
    (c) * * *
    (354) New and amended regulations for the following APCDs were 
submitted on March 7, 2008, by the Governor's designee.
    (i) Incorporation by reference.
    (A) South Coast Air Quality Management District.
    (1) Rule 2004, ``Requirements'' adopted on October 15, 1993 and 
amended on April 6, 2007.
    (2) Rule 2007, ``Trading Requirements'' adopted on October 15, 1993 
and amended April 6, 2007.
    (3) Rule 2010, ``Administrative Remedies and Sanctions'' adopted on 
October 15, 1993 and amended on April 6, 2007.

[FR Doc. E8-14884 Filed 7-2-08; 8:45 am]
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