[Federal Register Volume 80, Number 31 (Tuesday, February 17, 2015)]
[Proposed Rules]
[Pages 8250-8253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03058]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2015-0087; FRL-9923-02-Region 9]


Revision of Air Quality Implementation Plan; California; South 
Coast Air Quality Management District; Stationary Source Permits

AGENCY: Environmental Protection Agency (EPA).

[[Page 8251]]


ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the South Coast Air 
Quality Management District (SCAQMD) portion of the California State 
Implementation Plan (SIP) that pertains to SCAQMD Rule 1325: Federal 
PM2.5 New Source Review Program, submitted on December 29, 
2014. SCAQMD adopted Rule 1325 to meet the Clean Air Act (CAA) part D 
requirements for emissions of PM2.5 from stationary sources.

DATES: Written comments must be received on or before March 19, 2015.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2015-0087, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the on-line instructions.
    2. Email: [email protected].
    3. Mail or deliver: Gerardo Rios (AIR-3), U.S. Environmental 
Protection Agency, Region IX, 75 Hawthorne Street, San Francisco, CA 
94105-3901. Deliveries are only accepted during the Regional Office's 
normal hours of operation.
    Instructions: All comments 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 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 http://www.regulations.gov or email. 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 email directly to EPA, your email 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.
    Docket: EPA has established a docket for this action under EPA-R09-
OAR-2015-0087. Generally, documents in the docket for this action are 
available electronically at http://www.regulations.gov and in hard copy 
at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While 
all documents in the docket are generally listed at http://www.regulations.gov, some information may be publicly available only at 
the hard copy location (e.g., copyrighted material, large maps), 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 below.

FOR FURTHER INFORMATION CONTACT: La Weeda Ward, by phone: (213) 244-
1812 or by email at [email protected].

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

Table of Contents

I. The State's Submittal
    A. What rule did the State submit?
    B. What is the purpose of the submitted rule?
II. EPA's Evaluation
    A. What is the background for today's proposal?
    B. How is EPA evaluating the rule?
    C. Does the rule meet the evaluation criteria?
III. Proposed Action and Public Comment
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rule did the State submit?

    Table 1 lists the rule addressed by this proposal with the date 
that it was adopted by the local air agency and submitted by CARB.

                                             Table 1--Submitted Rule
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                                                                                        Adopted/
               Local agency                   Rule #              Rule title             amended      Submitted
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SCAQMD...................................         1325   Federal PM2.5 New Source        12/05/14      12/29/14
                                                          Review Program.
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    On December 29, 2014, CARB submitted an amended rule, SCAQMD Rule 
1325: Federal PM2.5 New Source Review Program to EPA for approval as a 
revision to the SCAQMD portion of the California SIP.
    On January 30, 2015, CARB's December 29, 2014 submittal of Rule 
1325 was deemed to meet the completeness criteria in 40 CFR part 51, 
appendix V, which must be met before formal EPA review. The submittal 
includes evidence of public notice and adoption of the regulation. Our 
technical support document (TSD) provides additional background 
information on our evaluation of Rule 1325.

B. What is the purpose of the submitted rule?

    SCAQMD Rule 1325 addresses Nonattainment New Source Review (NNSR) 
permit requirements for major sources of PM2.5. The NNSR 
requirements under part D of the CAA apply to ``major stationary 
sources'' and ``major modifications'' as those terms are defined in 40 
CFR part 51.165(a)(1)(iv) and (v). The purpose of this proposed 
rulemaking is to present our evaluation under the CAA and EPA's 
regulations. We provide our reasoning in general terms below but 
provide a more detailed analysis in our TSD, which is available in the 
docket for this proposed rulemaking.

II. EPA's Evaluation

A. What is the background for today's proposal?

    Part D of title I of the Act contains the requirements for areas 
designated ``nonattainment'' for any of the national ambient air 
quality standards (NAAQS). Part D requires pre-construction permit 
programs for certain new or modified stationary sources located in 
nonattainment areas. 42 U.S.C. 7502(c)(5).
    On July 18, 1997, EPA established 24-hour and annual NAAQS for 
PM2.5 (62 FR 38652). On January 5, 2005 (70 FR 944), EPA 
designated portions of the South Coast Air Basin as nonattainment for 
the 1997 24-hour and annual PM2.5 standards (40 CFR 81.305). 
On December 9, 2014, EPA proposed to find that the South Coast Air 
Basin had attained the 1997 24-hour and annual PM2.5 NAAQS 
(79 FR 72999).
    EPA has revised the NAAQS for PM2.5 on two occasions 
since the 1997 promulgation. On October 17, 2006, the 24-hour 
PM2.5 primary standard was strengthened (71 FR 61144) and on 
January 15, 2013, the annual primary standard for PM2.5 was 
strengthened (78 FR 3086). On November 13, 2009, EPA designated the 
South Coast Air Basin as nonattainment for the 2006 24-hour 
PM2.5 standard (74 FR 58688). On February 13, 2013, SCAQMD 
submitted

[[Page 8252]]

a plan to provide for attainment of the 2006 24-hour PM2.5 
standard in the South Coast Air Basin.
    Following promulgation of the PM2.5 standards, EPA 
issued two guidance documents pertaining to the regulation of 
PM2.5 emissions. The first document issued in 1997 (Seitz 
Memo) stated that sources were allowed to use implementation of a 
PM10 permit program as a surrogate for meeting 
PM2.5 PSD requirements until certain technical difficulties 
were resolved, primarily the lack of necessary tools to calculate the 
emissions of PM2.5 and related precursors, the lack of 
adequate modeling techniques to project ambient impacts, and the lack 
of PM2.5 monitoring sites.\1\ The second document (Page 
Memo) was issued in 2005 on the same date that the 1997 
PM2.5 designations became effective and provided guidance on 
the implementation of the NNSR provisions in PM2.5 
nonattainment areas for an interim period between the effective date of 
the designations (April 5, 2005) and the promulgation date of final 
NNSR regulations.\2\ As reflected in the Page Memo, States were allowed 
to use their existing PM10 NNSR program as a surrogate to 
address the requirements of a NNSR program for PM2.5. 
Therefore, districts such as the SCAQMD, which have a SIP approved NNSR 
program for PM10, were not required to submit a NNSR rule 
for emissions of PM2.5 at that time.
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    \1\ United Stated Environmental Protection Agency Memorandum 
from John S. Seitz, Director, Office of Air Quality Planning & 
Standards, Director to Regional Air Division Directors, ``Interim 
Implementation of New Source Review Requirements for 
PM2.5,'' October 23, 1997.
    \2\ United States Environmental Protection Agency Memorandum 
from Stephen D. Page, Director to Regional Air Division Directors, 
``Implementation of New Source Review Requirements in PM2.5 
Nonattainment Areas,'' April 5, 2005.
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    On May 16, 2008, EPA published its final rule pertaining to 
PM2.5 implementation requirements entitled ``Implementation 
of New Source Review (NSR) Program for Particulate Matter Less Than 2.5 
Micrometers (PM2.5)'' (the 2008 NSR PM2.5 
Rule),\3\ which promulgated NSR requirements for implementation of 
PM2.5 in both nonattainment areas (NNSR) and attainment/
unclassifiable areas (PSD). With respect to NNSR, this 2008 final rule 
established the major source threshold, significant emissions rate, 
offset ratios for PM2.5, interpollutant offset trading 
requirements, and applicability of NNSR to PM2.5 precursors. 
Promulgation of the 2008 PM2.5 NNSR Rule ended application 
of the PM10 surrogacy policy under the Page Memo for NNSR 
permitting. Because it takes time for a local permitting agency to 
revise its rules to include all of the new NNSR program requirements, 
EPA's regulations provide in 40 CFR 52.24(k) that the Emission Offset 
Interpretative Ruling, contained in 40 CFR part 51, Appendix S shall 
govern applications for permits to construct and operate during the 
period between the date of designation as nonattainment and the date a 
NNSR permitting program meeting the requirements of part D of the CAA 
is approved into the SIP.\4\ The 2008 NSR PM2.5 Rule 
therefore codified revisions to Appendix S for states that lacked a 
NNSR program covering PM2.5. Therefore, new and modified 
major sources of PM2.5 emissions locating in SCAQMD are 
subject to the provisions of Appendix S until our final approval of 
Rule 1325, which SCAQMD adopted to implement the requirements of EPA's 
2008 PM2.5 NSR implementation rule. Once approved into the 
SIP, Rule 1325 will replace the current Appendix S PM2.5 New 
Source Review requirements.
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    \3\ 73 FR 28321 (May 16, 2008).
    \4\ 73 FR at 28321.
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    On January 4, 2013, the U.S. Court of Appeals for the District of 
Columbia Circuit, in Natural Resources Defense Council v. EPA,\5\ 
issued a decision that remanded the EPA's 2007 and 2008 rules 
implementing the 1997 PM2.5 NAAQS. The court found that EPA 
erred in implementing the PM2.5 NAAQS in these rules solely 
pursuant to the general implementation provisions of subpart 1 of part 
D of title I of the CAA, rather than pursuant to the additional 
implementation provisions specific to particulate matter nonattainment 
areas in subpart 4. The court ordered the EPA to ``repromulgate these 
rules pursuant to Subpart 4 consistent with this opinion.'' 706 F.3d 
428, 437. On June 2, 2014, EPA finalized a rule that provides a 
response, in part, to the NRDC v. EPA remand.\6\ The rule initially 
classifies all nonattainment areas as moderate and sets a deadline of 
December 31, 2014, for states to submit ``remaining required SIP 
submissions for [nonattainment] areas, pursuant to and considering the 
application of subpart 4''. Under subpart 4, the only additional 
requirement for a NNSR program is to ensure all control requirements 
applicable to PM2.5 major sources also apply to 
PM2.5 precursors, except where the Administrator determines 
that such sources do not contribute significantly to PM2.5 
levels which exceed the standard in the area. (CAA section 189(e))
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    \5\ 706 F.3d 428 (D.C. Cir. 2013).
    \6\ Identification of Nonattainment Classification and Deadlines 
for Submission of State Implementation Plan (SIP) Provisions for the 
1997 Fine Particle (PM2.5) National Ambient Air Quality 
Standard (NAAQS) and 2006 PM2.5 NAAQS; 79 FR 31566, June 
2, 2014.
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    The SCAQMD's current NNSR program for emissions of pollutants other 
than PM2.5 regulates new and modified stationary sources of 
emissions through a series of rules in its Regulation XIII. The rules 
contained in Regulation XIII prescribe pre-construction review 
requirements for new and modified facilities, to ensure that the 
facility operations do not interfere with progress towards attaining 
ambient air quality standards. With the adoption of Rule 1325, SCAQMD 
provides a rule intended to specifically regulate PM2.5 
emissions in accordance with requirements of 40 CFR 51.165 and the CAA.

B. How is EPA evaluating the rule?

    EPA reviewed Rule 1325: Federal PM2.5 New Source Review 
Program for compliance with: (1) The CAA requirements for SIPs in 
general as set forth in CAA section 110(a)(2); (2) the requirements 
related to SIP revisions in CAA sections 110(l) \7\ and 193; (3) the 
requirements for stationary source preconstruction permitting programs 
in CAA section 173(a) through (c) of subpart 1 and section 189 of 
subpart 4; (4) requirements related to the review and modification of 
major sources in 40 CFR part 51.165.
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    \7\ CAA section 110(l) requires SIP revisions to be subject to 
reasonable notice and public hearing prior to adoption and submittal 
by States to EPA and prohibits EPA from approving any SIP revision 
that would interfere with any applicable requirement concerning 
attainment and reasonable further progress, or any other applicable 
requirement of the CAA.
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C. Does the rule meet the evaluation criteria?

    With respect to procedural requirements, CAA sections 110(a)(2) and 
110(l) require that revisions to a SIP be adopted by the State after 
reasonable notice and public hearing. EPA has promulgated specific 
procedural requirements for SIP revisions in 40 CFR part 51, subpart V. 
These requirements include publication of notices, by prominent 
advertisement in the relevant geographic area, a public hearing or 
notice of an opportunity for a public hearing on the proposed 
revisions, and a public comment period of at least 30 days.
    Based on our review of the public process documentation included in 
the December 29, 2014 submittal, we find that SCAQMD has provided 
sufficient evidence of public notice and opportunity for comment and a 
public

[[Page 8253]]

hearing prior to adoption and submittal of these rules to EPA.
    For Section 193 of the Act, which was added by the Clean Air Act 
Amendments of 1990, that provision includes a savings clause providing 
in pertinent part: ``No control requirement in effect, or required to 
be adopted by an order, settlement agreement, or plan in effect before 
November 15, 1990, in any area which is a nonattainment area for any 
air pollutant may be modified after November 15, 1990, in any manner 
unless the modification insures equivalent or greater emission 
reductions of such air pollutant.'' Since PM2.5 is a new 
NAAQS, there are no existing PM2.5 control requirements that 
would be subject to the provisions of Section 193 of the CAA. 
Therefore, for the purposes of our analysis of Rule 1325, we find that 
Section 193 of the CAA does not apply to this action.
    Rule 1325 includes revisions to SCAQMD's NNSR program consistent 
with CAA sections 173 and 189, and 40 CFR 51.165. Specifically, Rule 
1325 includes the PM2.5 emission rates that define major 
source and major modification thresholds, regulation of direct 
PM2.5 and certain PM2.5 precursors 
(SO2 and NOX), and the emissions offset 
requirements.
    CAA subpart 4 includes section 189(e), which requires the control 
of major stationary sources of PM10 precursors (and hence 
under the court decision, PM2.5 precursors) ``except where 
the Administrator determines that such sources do not contribute 
significantly to PM10 levels which exceed the standard in 
the area.'' Rule 1325(b)(8) provides a definition of Precursors that 
only includes SO2 and NOX and excludes VOC and 
ammonia emissions as precursors to PM2.5. The SCAQMD 
regulates VOC emissions pursuant to Regulation XIII, requiring federal 
Lowest Achievable Emission Rate (LAER) controls and offsets at emission 
thresholds significantly lower than required for a PM2.5 
precursor. Therefore we are proposing to find that Regulation XIII 
already satisfies the section 189(e) requirement for VOC and it is not 
necessary to include VOC as a precursor in Rule 1325. The SCAQMD 
requires LAER but not offsets for ammonia emissions in Regulations 
XIII. However, as allowed by CAA section 189(e), the SCAQMD has 
provided additional information in its staff report and other documents 
in our docket demonstrating major stationary sources of ammonia 
emissions do not contribute significantly to PM2.5 levels 
that exceed the standard in the South Coast Air Basin. Please refer to 
our TSD for a detailed discussion of this issue.
    With respect to substantive requirements found in CAA sections 173 
and 189, and 40 CFR 51.165, we have evaluated SCAQMD Rule 1325 in 
accordance with the CAA and regulatory requirements that apply to NNSR 
permit programs under part D of title I of the Act. We find that Rule 
1325 satisfies the applicable requirements for a NNSR permit program 
and would strengthen the applicable SIP. We are therefore proposing a 
full approval of the submitted rule. Our TSD, which can be found in the 
docket for this rule, contains a more detailed evaluation and 
discussion of the approval criteria.

III. Proposed Action and Public Comment

    Pursuant to section 110(k)(3) of the CAA and for the reasons 
provided above, EPA is proposing to approve SCAQMD Rule 1325. For the 
reasons stated above and explained further in our TSD, we find that 
SCAQMD Rule 1325 satisfies the applicable CAA and regulatory 
requirements for a NNSR permit program under CAA section 110(a)(2)(C) 
and part D of title I of the Act. Rule 1325 strengthens the SIP by 
adding PM2.5 permit major source requirements.
    We will accept comments from the public on this proposed approval 
for the next 30 days.

IV. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference SCAQMD Rule 1325--Federal PM2.5 New Source Review 
Program which is discussed in section I.A. of this preamble. The EPA 
has made, and will continue to make, this document generally available 
electronically through www.regulations.gov and/or in hard copy at the 
appropriate EPA office (see the ADDRESSES section of this preamble for 
more information).

V. 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 (Public Law 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 interfere with Executive Order 12898 (59 FR 7629 
(Feb. 16, 1994)) because EPA lacks the discretionary authority to 
address environmental justice in this rulemaking.
    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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Particulate Matter, Reporting 
and recordkeeping requirements.

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

    Dated: February 5, 2015.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2015-03058 Filed 2-13-15; 8:45 am]
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