[Federal Register Volume 81, Number 123 (Monday, June 27, 2016)]
[Rules and Regulations]
[Pages 41447-41450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-15038]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2015-0366; FRL-9948-21-Region 5]


Air Plan Approval; Minnesota; Sulfur Dioxide

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving a 
revision to the Minnesota sulfur dioxide (SO2) State 
Implementation Plan (SIP) for the Flint Hills Resources, LLC Pine Bend 
Refinery (FHR) as submitted on May 1, 2015. The revision will 
consolidate existing permanent and enforceable SO2 SIP 
conditions into the facility's joint Title I/Title V SIP document. This 
action highlights process modifications necessary to meet EPA's Tier 3 
gasoline sulfur standards; a comprehensive monitoring strategy to 
better quantify SO2 emissions from fuel gas-fired emission 
units; a new restrictive flaring procedure for refinery process units, 
and other updates and administrative changes. This revision results in 
a modeled reduction in SO2 emissions from FHR and modeled 
SO2 ambient air concentrations less than half of the 
national ambient air quality standards (NAAQS).

DATES: This direct final rule will be effective August 26, 2016, unless 
EPA receives adverse comments by July 27, 2016. If adverse comments are 
received, EPA will publish a timely withdrawal of the direct final rule 
in the Federal Register informing the public that the rule will not 
take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2015-0366 at http://www.regulations.gov or via email to 
[email protected]. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the Web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the ``For Further Information Contact'' section. For the 
full EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Anthony Maietta, Environmental 
Protection Specialist, Control Strategies Section, Air Programs Branch 
(AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 353-8777, 
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. What is the background for this action?
    A. EPA's Tier 3 Gasoline Standards
    B. Administrative Order and Title I SO2 SIP 
Conditions
II. What is EPA's analysis of the SIP revision?
    A. EPA's Tier 3 Gasoline Standards
    B. Administrative Order and Title I SO2 SIP 
Conditions
    C. Miscellaneous Revisions
III. What action is EPA taking?
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. What is the background for this action?

A. EPA's Tier 3 Gasoline Standards

    On April 28, 2014 (79 FR 23414 and amended on April 22, 2016, at 81 
FR 23641), EPA established more stringent vehicle emissions standards 
to reduce the sulfur content of gasoline beginning January 1, 2017. The 
Tier 3 gasoline fuel standards (Tier 3 standards) will reduce both 
tailpipe and evaporative emissions from both new and existing passenger 
cars, light-duty trucks, medium-duty passenger vehicles, and some 
heavy-duty vehicles. This will result in significant reductions in 
pollutants such as ozone, particulate matter, and air toxics across the 
country and help state and local agencies in their efforts to attain 
and maintain health-based NAAQS.
    In order to meet the Tier 3 standards, FHR plans to increase its 
use of hydrotreating to remove sulfur from intermediate fuel products. 
The increased hydrotreating will also increase the removal of nitrogen. 
To address the increased removal of nitrogen and sulfur, FHR proposes 
to install a process to convert gas containing sulfur and nitrogen into 
a salable, non-hazardous, aqueous liquid fertilizer: ammonium 
thiosulfate (ATS).

B. Administrative Order and Title I SO2 SIP Conditions

    Minnesota also requested EPA's approval of the transfer of Title I 
SO2 SIP conditions from an Administrative Order (Order) into 
the FHR Title I/Title V SO2 SIP document. Until 1990, 
Minnesota Pollution Control Agency (MPCA) had placed SIP control 
measures in permits issued to culpable sources. In 1990, EPA determined 
that limits in state-issued permits were not federally enforceable 
because the permits expired. Subsequently, MPCA then issued permanent 
Orders to affected sources in nonattainment areas from 1991 to February 
of 1996.
    In 1995, EPA approved into the Minnesota SIP Minnesota's 
consolidated permitting regulations. (60 FR 21447, May 2, 1995). The 
consolidated permitting regulations included the term ``Title I 
condition'' which was written, in part, to satisfy EPA requirements 
that SIP control measures remain permanent. A ``Title I condition'' is 
defined, in part, as ``any condition based on source-specific 
determination of ambient impacts imposed for the purpose of achieving 
or maintaining attainment with a national ambient air

[[Page 41448]]

quality standards and which was part of a [SIP] approved by the EPA or 
submitted to the EPA pending approval under section 110 of the act . . 
. .'' MINN. R. 7007.1011 (2013). The regulations also state that 
``Title I conditions and the permittee's obligation to comply with 
them, shall not expire, regardless of the expiration of the other 
conditions of the permit.'' Further, ``any title I condition shall 
remain in effect without regard to permit expiration or reissuance, and 
shall be restated in the reissued permit.'' MINN. R. 7007.0450 (2007).
    Minnesota has initiated using the joint Title I/Title V document as 
the enforceable document for imposing emission limitations and 
compliance requirements in SIPs. The SIP requirements in the joint 
Title I/Title V document submitted by MPCA are cited as ``Title I 
conditions,'' therefore ensuring that SIP requirements remain permanent 
and enforceable. EPA reviewed the state's procedure for using joint 
Title I/Title V documents to implement site-specific SIP requirements 
and found it to be acceptable under both Title I and Title V of the 
Clean Air Act (CAA) (July 3, 1997 letter from David Kee, EPA, to 
Michael J. Sandusky, MPCA).
    FHR's SIP obligations are currently contained in an Order that was 
adopted by MPCA on August 29, 2011, and approved by EPA on May 15, 2013 
(78 FR 28501) (FHR Order). On May 1, 2015, MPCA submitted revisions to 
the Minnesota SO2 SIP for FHR. MPCA requested that EPA 
approve into the SIP, the Title I SO2 SIP conditions 
contained in the joint Title I/Title V document while removing the FHR 
Order from the SIP. In addition to incorporating FHR's current 
SO2 SIP obligations into the facility's joint Title I/Title 
V document, MPCA requested approval of additional changes to the 
Minnesota SO2 SIP.

II. What is EPA's analysis of the SIP revision?

A. EPA's Tier 3 Gasoline Standards

    Title I SO2 SIP conditions have been created for the ATS 
process unit, which include hourly and annual emissions limits, as well 
as monitoring, record keeping, and reporting requirements for the ATS 
process unit. The ATS unit will take H2S and ammonia from 
sour water streams and convert them into ATS, which will then be sold 
as fertilizer. The unit is being constructed in conjunction with FHR's 
plan to meet EPA's Tier 3 fuel standards. The ATS unit will allow FHR 
to utilize the increased amounts of sulfur and nitrogen removed from 
intermediate fuel products by gas-oil hydrotreaters by combining them 
into ATS.
    Review of the technical support document and computer modeling 
reports submitted by MPCA shows that installation of the ATS unit in 
conjunction with the other updates to the facility will not cause an 
exceedance of the modeled SO2 standards. The data show that 
SO2 emissions will be between 6 and 8 percent less than 
emissions from the facility modeled under the last SIP revision. Using 
AERMOD and including FHR and nearby sources, the modeled ambient air 
concentrations of SO2 for the 3-hour, 24-hour, and annual 
SO2 NAAQS for these revisions are at 41.5%, 48.5%, and 27.5% 
of the standards, respectively. Therefore, the addition of Title I 
SO2 SIP requirements for the ATS unit is acceptable and the 
revisions to the FHR SIP are approvable.

B. Administrative Order and Title I SO2 SIP Conditions

    On March 17, 2015, MPCA amended the operating permit for FHR (Air 
Emissions Permit No. 03700011-012). This joint Title I/Title V document 
incorporates, as Title I SO2 SIP conditions, FHR's SIP 
obligations which had previously been listed in the FHR Order. This is 
approvable because those conditions have already been approved into 
Minnesota's SO2 SIP and are merely being moved into the FHR 
joint Title I/Title V document to provide the source with a single 
enforceable document. Upon the effective date of EPA approval of the 
Title I SO2 SIP conditions into the FHR SIP, the Order will 
be revoked as stipulated in a May 1, 2015, Administrative Order from 
MPCA. As part of this action, EPA is approving the revocation of the 
Order from the Minnesota SO2 SIP.

C. Miscellaneous Revisions

    Finally, Minnesota is requesting that EPA approve several changes 
to the existing SIP for FHR. These changes include:
--Changing ``company'' to ``permittee'' which is acceptable because 
moving the pertinent Title I SO2 SIP conditions from the 
Order to the FHR permit means the term to describe FHR would change to 
reflect the move.
--Amendments to allow the use of ultra-low sulfur diesel, which can be 
considered fuel oil, to be combusted at FHR. This revision clarifies 
the rule, and is acceptable.
--Removing operating hour limits on diesel powered units because, with 
the availability of ultra-low sulfur diesel, these units qualify as 
insignificant sources of SO2. Therefore the operating hours 
limits on these units are no longer required. This revision is 
approvable.
--Inclusion of the phrase ``in conjunction with oxidation gases from 
OSWTP equipment'' to indicate that the oil separation and waste 
treatment plant gases, which are allowed to be combusted from one 
oxidizer at a time, are able to be combusted along with natural gas. 
This amendment merely clarifies the requirement, and is acceptable.
--Changing `continuous monitoring system (CMS)' to `continuous emission 
monitoring system (CEMS)', and by adding a total sulfur CEMS on the 45-
unit mix drum as an operating condition. The revision and addition are 
approvable because they clarify the rule language, and the addition of 
the CEMS on the 45-unit mix drum helps FHR more accurately quantify the 
sulfur emissions from the unit.
--Inclusion of more restrictive language that indicates the flare 
system is to be used only for unplanned and infrequent events resulting 
from malfunctions. The amended language also excludes flaring gases 
from normal operation, including gases from scheduled startups and 
shutdowns of refinery process units. This amendment is acceptable since 
it clarifies the condition's applicability and creates more stringent 
conditions for flare use at FHR.
--Removing the Merox process incinerator from the Title I 
SO2 SIP conditions because the Merox process incinerator was 
decommissioned and removed. The removal of the unit was approved by EPA 
in a prior rulemaking (78 FR 28501). The conditions were also amended 
to add the new ATS unit, which will be discussed in more detail later 
in this document. These revisions are acceptable because SO2 
emissions will be reduced at the facility as a result of these changes.
--Replacing the phrase ``total reduced sulfur CMS'' with ``reduced 
sulfur and total sulfur CEMS,'' reflecting the more comprehensive fuel 
gas sulfur continuous emission monitoring system installed at the 
facility. This revision is approvable.
--Replacing the acronym ``CMS'' with ``CEMS,'' which is approvable 
because it clarifies that the acronym stands for a continuous emission 
monitoring system. Continuous monitoring requirements were also amended 
to include language to show that FHR will maintain a CEMS for the 45-
unit mix drum that will

[[Page 41449]]

measure total sulfur from the mix drum fuel gas stream, and that the 
CEMS will provide a continuous record of measurement in parts per 
million. This revision is approvable because it ensures that the 45-
unit mix drum will be comprehensively monitored for sulfur emissions. 
Lastly, this section was revised to clarify the list of fuels that 
would require contract guarantees for H2S and heat content 
for compliance demonstration purposes, which is approvable because it 
clarifies the requirement for the facility.
--Updating the language of the quarterly reporting requirements to 
reflect current emissions monitoring and report submittal requirements. 
This revision is acceptable because it clarifies what FHR must submit 
in its reporting to MPCA.
--Throughout the joint document, the term ``the Company'' has been 
replaced with ``the Permittee'' which is acceptable because it reflects 
the location of FHR's Title I SO2 SIP conditions within the 
joint document instead of within Orders.
--In the portions of the joint document dealing with continuous 
monitoring requirements and recordkeeping requirements, references to 
the term ``hydrogen sulfide'' have been replaced with ``sulfur 
content'' to reflect the more comprehensive monitoring strategy 
approved for FHR.
--Requirements for fuel gas SO2 emissions from the 41- and 
45-unit mix drums have been made Title I SO2 SIP conditions, 
including use of SO2 CEMS monitoring systems and associated 
recordkeeping requirements. The revisions are acceptable because the 
new CEMS monitor sulfur emissions more comprehensively, providing a 
more accurate analysis of FHR's SO2 emissions from the 41- 
and 45-unit mix drums. In a related revision, continuous monitoring 
requirements for H2S in SIP emission units have been revised 
to become total reduced sulfur, which is approvable because the new 
monitors more comprehensively indicate SO2 emissions from 
these units. It should be noted that H2S monitoring required 
for new source performance standards (NSPS) for petroleum refineries 
are not affected by these revisions as H2S monitoring will 
continue for these units in addition to the comprehensive sulfur 
monitoring described above.
--Removal of H2S CMS requirements from FHR's Title I 
SO2 SIP, because the new SO2 and total sulfur 
CEMS supersede the need for H2S CMSs for the facility and 
because the H2S monitor requirements will remain as non-SIP 
level requirements in order to meet the NSPS for petroleum refineries. 
Therefore, this revision is approvable.
--The H2S 3-hour rolling average limit for the 45H6 stack 
has been made a Title I SO2 SIP condition, which is 
approvable because the condition becomes permanent and federally 
enforceable.
--Language has been removed from the SO2 limits for the #1 
Vac Heater, #1 Crude Heater atmospheric distillation unit, and #1 and 
#2 Coker Heaters that had indicated the limits were effective as of 
EPA's approval of the ninth revision to the Order (which EPA approved 
on May 15, 2013 at 78 FR 28501). Because the revision simply removes 
language that is no longer necessary, the revision is acceptable.
--The recordkeeping requirements for start and stop times for emissions 
units 032, 033, 037, and 038 (Steam/Air Heater Decoking units 21H-1, 
21H-2, 23H-1, and 23H-2, respectively) have been made Title I 
SO2 SIP conditions. This is acceptable because it allows 
recordkeeping requirements for these units to be federally enforceable.
--The diesel fuel certification recordkeeping requirement for the plan 
air compressor diesel engine has been made a Title I SO2 SIP 
condition, and a typo was corrected in the requirement. These revisions 
are approvable because it allows federal enforceability of 
recordkeeping to show FHR uses ultra-low sulfur diesel fuel in the 
plant air compressor diesel engine.
--An amendment to the requirements for the Oil Separation and Waste 
Treatment Plant to streamline the requirements for burning natural gas 
in conjunction with oxidation of gases from the treatment plant 
equipment. The revision does not decrease the stringency of the 
requirements but makes the requirements easier to understand, and is 
therefore acceptable.
--Requirements for Boiler B-10, including Title I SO2 SIP 
conditions, have been removed from the FHR SIP because the boiler was 
never installed. This revision is acceptable because the source that 
the regulation is meant to address does not exist and will not exist.

III. What action is EPA taking?

    EPA is approving a revision to the SIP for FHR, as submitted by 
MPCA on May 1, 2015. The revision will consolidate existing permanent 
and enforceable SO2 SIP conditions into the facility's joint 
Title I/Title V SIP document and simultaneously remove the existing FHR 
Order from the SIP. We are publishing this action without prior 
proposal because we view this as a noncontroversial amendment and 
anticipate no adverse comments. However, in the proposed rules section 
of this Federal Register publication, we are publishing a separate 
document that will serve as the proposal to approve the state plan if 
relevant adverse written comments are filed. This rule will be 
effective August 26, 2016 without further notice unless we receive 
relevant adverse written comments by July 27, 2016. If we receive such 
comments, we will withdraw this action before the effective date by 
publishing a subsequent document that will withdraw the final action. 
All public comments received will then be addressed in a subsequent 
final rule based on the proposed action. EPA will not institute a 
second comment period. Any parties interested in commenting on this 
action should do so at this time. 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. If we do not receive any comments, this 
action will be effective August 26, 2016.

IV. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, EPA is finalizing the incorporation by reference of the Minnesota 
Regulations described in the amendments to 40 CFR part 52 set forth 
below. EPA has made, and will continue to make, these documents 
generally available electronically through www.regulations.gov and/or 
in hard copy at the appropriate EPA office (see the FOR FURTHER 
INFORMATION CONTACT section of this preamble for more information).

V. 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

[[Page 41450]]

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 Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     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, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    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 CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by August 26, 2016. 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. Parties with objections to this direct final rule are 
encouraged to file a comment in response to the parallel notice of 
proposed rulemaking for this action published in the proposed rules 
section of this Federal Register, rather than file an immediate 
petition for judicial review of this direct final rule, so that EPA can 
withdraw this direct final rule and address the comment in the proposed 
rulemaking. 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, Reporting and recordkeeping 
requirements, Sulfur oxides.

    Dated: June 21, 2016.
Robert Kaplan,
Acting Regional Administrator, Region 5.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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


0
2. In Sec.  52.1220, the table in paragraph (d) is amended by revising 
the entry for ``Flint Hills Resources Pine Bend, LLC'' to read as 
follows:


Sec.  52.1220  Identification of plan.

* * * * *
    (d) * * *

                                 EPA-Approved Minnesota Source-Specific Permits
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                                                          State
          Name of source               Permit No.       effective    EPA  approval  date          Comments
                                                          date
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                                                  * * * * * * *
Flint Hills Resources Pine Bend,        03700011-012     03/17/15   06/27/16, [Insert      Only conditions cited
 LLC.                                                                Federal Register       as ``Title I
                                                                     citation].             Condition: 40 CFR
                                                                                            Section 50.4,
                                                                                            SO[ihel2] SIP; Title
                                                                                            I Condition: 40 CFR
                                                                                            pt. 52, subp. Y''.
 
                                                  * * * * * * *
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[FR Doc. 2016-15038 Filed 6-24-16; 8:45 am]
 BILLING CODE 6560-50-P