[Federal Register Volume 77, Number 61 (Thursday, March 29, 2012)]
[Proposed Rules]
[Pages 18987-18990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-7573]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2011-0924; FRL-9653-9]


Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Nonattainment New Source Review; Fine Particulate Matter 
(PM2.5)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a State Implementation Plan (SIP) 
revisions submitted by the Commonwealth of Pennsylvania. These 
revisions pertaining to Pennsylvania's nonattainment New Source Review 
(NSR) program incorporate preconstruction permitting regulations for 
fine particulate matter (PM2.5) into the Pennsylvania SIP. 
EPA is approving these revisions in accordance with the requirements of 
the Clean Air Act (CAA).

DATES: Written comments must be received on or before April 30, 2012.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2011-0924 by one of the following methods:
    A. www.regulations.gov. Follow the on-line instructions for 
submitting comments.
    B. Email: [email protected].

[[Page 18988]]

    C. Mail: EPA-R03-OAR-2011-0924, Kathleen Cox, Associate Director, 
Office of Permits and Air Toxics, Mailcode 3AP10, U.S. Environmental 
Protection Agency, Region III, 1650 Arch Street, Philadelphia, 
Pennsylvania 19103.
    D. Hand Delivery: At the previously-listed EPA Region III address. 
Such deliveries are only accepted during the Docket's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2011-0924. EPA's policy is that all comments received 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 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 www.regulations.gov or email. The 
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 email comment 
directly to EPA without going through www.regulations.gov, your email 
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 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 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in www.regulations.gov or 
in hard copy during normal business hours at the Air Protection 
Division, U.S. Environmental Protection Agency, Region III, 1650 Arch 
Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal 
are available at the Pennsylvania Department of Environmental 
Protection, Bureau of Air Quality Control, P.O. Box 8468, 400 Market 
Street, Harrisburg, Pennsylvania 17105.

FOR FURTHER INFORMATION CONTACT: Gerallyn Duke, (215) 814-2084, or by 
email at [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. On September 23, 2011, the 
Pennsylvania Department of Environmental Protection (PADEP) submitted a 
formal revision to its State Implementation Plan (SIP).

I. Background

    The SIP revision consists of amendments to 25 Pa. Code Chapter 121, 
``General Provisions;'' and Chapter 127, ``Construction, Modification, 
Reactivation and Operation of Sources.'' This SIP revision submitted by 
Pennsylvania will satisfy requirements that are set forth in the 
federal rule, ``Implementation of the New Source Review (NSR) Program 
for Particulate Matter less than 2.5 Micrometers (PM2.5)'' 
(NSR PM2.5 Rule), which was promulgated on May 16, 2008 (73 
FR 28321).

A. Fine Particulate Matter and the NAAQS

    Fine particles in the atmosphere are made up of a complex mixture 
of components. Common constituents include sulfate (SO4); 
nitrate (NO3); ammonium; elemental carbon; a great variety 
of organic compounds; and inorganic material (including metals, dust, 
sea salt, and other trace elements) generally referred to as 
``crustal'' material, although it may contain material from other 
sources. Airborne particulate matter (PM) with a nominal aerodynamic 
diameter of 2.5 micrometers or less (a micrometer is one-millionth of a 
meter, and 2.5 micrometers is less than one-seventh the average width 
of a human hair) are considered to be ``fine particles'' and are also 
known as PM2.5. ``Primary'' particles are emitted directly 
into the air as a solid or liquid particle (e.g., elemental carbon from 
diesel engines or fire activities, or condensable organic particles 
from gasoline engines). ``Secondary'' particles (e.g., sulfate and 
nitrate) form in the atmosphere as a result of various chemical 
reactions.
    The health effects associated with exposure to PM2.5 
include potential aggravation of respiratory and cardiovascular disease 
(i.e., lung disease, decreased lung function asthma attacks and certain 
cardiovascular issues). Epidemiological studies have indicated a 
correlation between elevated PM2.5 levels and premature 
mortality. Groups considered especially sensitive to PM2.5 
exposure include older adults, children, and individuals with heart and 
lung diseases. For more details regarding health effects and 
PM2.5 see EPA's Web site at http://www.epa.gov/oar/particlepollution/ (see heading ``Health and Welfare'').
    On July 18, 1997, EPA revised the NAAQS for PM to add new standards 
for fine particles, using PM2.5 as the indicator. 
Previously, EPA used PM10 (inhalable particles smaller than 
or equal to 10 micrometers in diameter) as the indicator for the PM 
NAAQS. EPA established health-based (primary) annual and 24-hour 
standards for PM2.5, setting an annual standard at a level 
of 15 micrograms per cubic meter ([mu]g/m\3\) and a 24-hour standard at 
a level of 65 [mu]g/m\3\ (62 FR 38652). At the time the 1997 primary 
standards were established, EPA also established welfare-based 
(secondary) standards identical to the primary standards. The secondary 
standards are designed to protect against major environmental effects 
of PM2.5, such as visibility impairment, soiling, and 
materials damage. On October 17, 2006, EPA revised the primary and 
secondary NAAQS for PM2.5. In that rulemaking, EPA reduced 
the 24-hour NAAQS for PM2.5 to 35 [mu]g/m\3\ and retained 
the existing annual PM2.5 NAAQS of 15 [mu]g/m\3\ (71 FR 
61236).

B. Implementation of NSR Requirements for PM2.5--the NSR PM2.5 Rule

    After EPA promulgated the NAAQS for PM2.5 on October 23, 
1997, the Agency issued a guidance document written by John Seitz 
entitled ``Interim Implementation of New Source Review Requirements for 
PM2.5'' (Seitz memo). The Seitz memo was designed to help 
states implement NSR requirements pertaining to the new 
PM2.5 NAAQS in light of technical difficulties posed by 
PM2.5 at that time. Specifically, the Seitz memo states: 
``PM10 may properly be used as a surrogate for 
PM2.5 in meeting NSR requirements until these difficulties 
are resolved.''
    EPA also issued a guidance document entitled ``Implementation of 
New Source Review Requirements in PM2.5 Nonattainment 
Areas'' (the ``2005 PM2.5 Nonattainment NSR Guidance''), on 
April 5, 2005, the date that EPA's PM2.5 nonattainment area 
designations became effective for the 1997 NAAQS. This memorandum 
provided guidance on the implementation of the nonattainment

[[Page 18989]]

major NSR provisions in PM2.5 nonattainment areas in the 
interim period between the effective date of the PM2.5 
nonattainment area designations (April 5, 2005) and EPA's promulgation 
of final PM2.5 nonattainment NSR regulations. Besides 
reaffirming the continuation of the PM10 Surrogate Policy 
for PM2.5 attainment areas set forth in the Seitz memo, the 
2005 PM2.5 nonattainment NSR Guidance recommended that until 
EPA promulgated the PM2.5 major NSR regulations, ``States 
should use a PM10 nonattainment major NSR program as a 
surrogate to address the requirements of nonattainment major NSR for 
the PM2.5 NAAQS.''
    On May 16, 2008, EPA finalized a rule (the NSR PM2.5 
Rule) to implement the 1997 PM2.5 NAAQS, including changes 
to the NSR program (73 FR 28321). The 2008 NSR PM2.5 Rule 
revised the NSR program requirements to establish the framework for 
implementing preconstruction permit review for the PM2.5 
NAAQS in both attainment and nonattainment areas. The 2008 NSR 
PM2.5 Rule required that major stationary sources seeking 
permits must directly satisfy the PM2.5 requirements, as of 
the effective date of the rule, rather than relying on PM10 
as a surrogate, with two exceptions. The first exception was a 
``grandfathering'' provision in the Federal PSD program at 40 CFR 
52.21(i)(1)(xi). This grandfathering provision applied to sources that 
had applied for, but had not yet received, a final and effective PSD 
permit before the July 15, 2008, effective date of the May 2008 final 
rule. The second exception was that states with SIP-approved PSD 
programs could continue to implement the Seitz Memo's PM10 
Surrogate Policy for up to three years (until May 2011) or until the 
individual revised state PSD programs for PM2.5 are approved 
by EPA, whichever came first. For additional information on the NSR 
PM2.5 Rule, see (73 FR 28321). On February 11, 2010, EPA 
proposed to repeal the grandfathering provision for PM2.5 
contained in the federal PSD program at 40 CFR 52.21(i)(1)(xi) and to 
end early the PM10 Surrogate Policy applicable in states 
that have a SIP approved PSD program (75 FR 6827). In support of this 
proposal, EPA explained that the PM2.5 implementation issues 
that led to the adoption of the PM10 Surrogate Policy in 
1997 have been largely resolved to a degree sufficient for sources and 
permitting authorities to conduct meaningful permit-related 
PM2.5 analyses. The repeal of the grandfathering rule was 
finalized on May 18, 2011 (76 FR 28646).
    The 2008 NSR PM2.5 Rule also established the following 
NSR requirements to implement the PM2.5 NAAQS: (1) Require 
NSR permits to address directly emitted PM2.5 and precursor 
pollutants; (2) establish significant emission rates for direct 
PM2.5 and precursor pollutants (including sulfur dioxide 
(SO2) and oxides of nitrogen NOX); (3) establish 
PM2.5 emission offsets; and (4) require states to account 
for gases that condense to form particles (condensables) in 
PM2.5 emission limits.
    Additionally, the 2008 final rule authorized states to adopt 
provisions in their nonattainment NSR rules that would allow major 
stationary sources and major modifications locating in areas designated 
nonattainment for PM2.5 to offset emissions increases of 
direct PM2.5 emissions or PM2.5 precursors with 
reductions of either direct PM2.5 emissions or 
PM2.5 precursors in accordance with offset ratios contained 
in the approved SIP for the applicable nonattainment area. The 
inclusion, in whole or in part, of the interpollutant offset provisions 
for PM2.5 is discretionary on the part of the states. In the 
preamble to the 2008 final rule, EPA included preferred or presumptive 
offset ratios, applicable to specific PM2.5 precursors that 
states may adopt in conjunction with the new interpollutant offset 
provisions for PM2.5, and for which the state could rely on 
the EPA's technical work to demonstrate the adequacy of the ratios for 
use in any PM2.5 non attainment area. Alternatively, the 
preamble indicated that states may adopt their own ratios, subject to 
the EPA's approval, that would have to be substantiated by modeling or 
other technical demonstrations of the net air quality benefit for 
ambient PM2.5 concentrations. The preferred ratios were 
subsequently the subject of a petition for reconsideration, which the 
Administrator granted. EPA continues to support the basic policy that 
sources may offset increases in emissions of direct PM2.5 or 
of any PM2.5 precursor in a PM2.5 nonattainment 
area with actual emissions reductions in direct PM2.5 or 
PM2.5 precursors in accordance with offset ratios as 
approved in the SIP for the applicable nonattainment area. However, we 
no longer consider the preferred ratios set forth in the preamble to 
the 2008 final rule for PM2.5 NSR implementation to be 
presumptively approvable. Instead, any ratio involving PM2.5 
precursors adopted by the state for use in the interpollutant offset 
program for PM2.5 nonattainment areas must be accompanied by 
a technical demonstration that shows the net air quality benefits of 
such ratio for the PM2.5 nonattainment area in which it will 
be applied.

II. Summary of SIP Revision

    The SIP revision submitted by Pennsylvania consists of amendments 
to the general provisions of 25 Pa. Code Chapters 121 and major 
nonattainment NSR permitting regulations of 25 Pa. Code Chapter 127. 
The revision fulfills the federal program requirements established by 
the EPA rulemaking actions discussed above for nonattainment areas. The 
amendments establish the major source threshold, significant emission 
rate and offset ratios for PM2.5, establish nitrogen oxides 
(NOX) and sulfur dioxide (SO2) as precursors to 
PM2.5, and establish interpollutant trading for offsets and 
NSR applicability to PM2.5 precursor pollutants, pursuant to 
the May 2008 NSR PM2.5 Rule. Pennsylvania's proposed SIP 
revision does not include the ``grandfathering'' and presumptively 
approvable interpollutant trading ratio provisions that have 
subsequently been repealed/reconsidered. Clarifying amendments, 
described below, for Chapter 127 are also made. Finally, minor 
editorial changes are included in the amendments.
    Section 127.203a(a)(2) is amended to clarify that aggregation of de 
minimis emissions for PM2.5 and PM2.5 precursors 
is not required. Section 127.206(o) is amended to clarify that, except 
as provided in Section 127.210 (which addresses offset ratios), an 
emission reduction credit (ERC) created for a regulated criteria 
pollutant shall only be used for offsetting or netting an emission 
increase involving the same criteria pollutant unless approved by 
PADEP. Section 127.203(b)(1)(i) is amended to clarify that the owner or 
operator must use the existing provisions in Section 127.203(b)(2) or 
(3) for a determination of control technology requirements when the net 
emission increase is equal to or exceeds the applicable emissions rate 
that is significant.
    The amendments add a definition of ``PM2.5.'' The 
amendments revise the definitions of existing terms ``regulated NSR 
pollutant'' and ``significant'' to include the requirements for 
PM2.5 to support the amendments to Chapter 127. 
Specifically, the existing term ``significant'' is revised to establish 
a threshold for PM2.5 and PM2.5 precursors at 
major modifications at existing sources and the existing term 
``regulated NSR pollutant'' is revised to include PM2.5 and 
to identify precursors for PM2.5. The amendments delete the 
term

[[Page 18990]]

``maximum allowable emissions'' since the term is no longer used to 
support existing regulations in Pennsylvania and the term is not used 
in the federal rules, set forth in 40 CFR 51.165, for nonattainment New 
Source Review SIPs.
    The amendments submitted by Pennsylvania for approval into the SIP 
were adopted by Pennsylvania on May 18, 2011 and became effective on 
September 3, 2011. They include revisions to certain definitions at 25 
Pa. Code 121.1, as well as to Chapter 127, Subchapter E (nonattainment 
NSR). The following regulations under Chapter 127 are revised: Section 
127.201 (General requirements), Section 127.201a (Measurements, 
abbreviations and acronyms), Section 127.202 (Effective date), Section 
127.203 (Facilities subject to special permit requirements), Section 
127.203a (Applicability determination), Section 127.204 (Emissions 
subject to this subchapter), Section 127.206 (ERC general 
requirements), and Section 127.210 (Offset ratios).

III. Proposed Action

    EPA's review of the revisions submitted by Pennsylvania for 
approval into the SIP finds them consistent with their federal 
counterparts. EPA is proposing to approve the Pennsylvania SIP revision 
to incorporate federal preconstruction permitting requirements for 
PM2.5 and PM2.5 precursors in nonattainment areas 
along with clarifying amendments, which was submitted on September 23, 
2011. EPA is soliciting public comments on the issues discussed in this 
document. These comments will be considered before taking final action.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA 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 CAA. Accordingly, this 
action merely proposes to approve state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed 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 CAA; 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 proposed rule pertaining to NSR requirements for 
PM2.5 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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate 
matter, Reporting and recordkeeping requirements, Sulfur oxides, 
Volatile organic compounds.

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

    Dated: March 19, 2012.
W.C. Early,
Acting Regional Administrator, Region III.
[FR Doc. 2012-7573 Filed 3-28-12; 8:45 am]
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