[Federal Register Volume 81, Number 161 (Friday, August 19, 2016)]
[Proposed Rules]
[Pages 55402-55405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19766]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0322; FRL-9950-95-Region 9]


Approval and Limited Approval and Limited Disapproval of 
California State Implementation Plan Revisions; Butte County Air 
Quality Management District; Stationary Source Permits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing a 
limited approval and limited disapproval of revisions to the Butte 
County Air Quality Management District (BCAQMD) portion of the 
California State Implementation Plan (SIP). These revisions concern the 
District's New Source Review (NSR) permitting program for new and 
modified sources of air pollution. We are proposing action on these 
local rules under the Clean Air Act as amended in 1990 (CAA or the 
Act). We are taking comments on this proposal and plan to follow with a 
final action.

DATES: Any comments must arrive by September 19, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. [EPA-R09-
OAR-2016-0332] 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 removed or edited from Regulations.gov. For either 
manner of submission, the 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. The EPA will 
generally not

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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: Laura Yannayon, EPA Region IX, (415) 
972-3534, [email protected].

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

Table of Contents

Definitions

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 rules?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Proposed Action and Public Comment
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

Definitions

    For the purpose of this document, we are giving meaning to certain 
words or initials as follows:
    (i) The word or initials Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.
    (ii) The initials CARB mean or refer to the California Air 
Resources Board.
    (iii) The initials CFR mean or refer to Code of Federal 
Regulations.
    (iv) The initials or words EPA, we, us or our mean or refer to the 
United States Environmental Protection Agency.
    (v) The initials FR mean or refer to Federal Register.
    (vi) The word or initials BCAQMD or District mean or refer to the 
Butte County Air Quality Management District.
    (vii) The initials NAAQS mean or refer to National Ambient Air 
Quality Standards.
    (viii) The initials NSR mean or refer to New Source Review.
    (ix) The initials PM10 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 10 micrometers (coarse 
particulate matter).
    (x) The initials PM2.5 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 2.5 micrometers (fine 
particulate matter).
    (xi) The initials SIP mean or refer to State Implementation Plan.
    (xii) The initials TSD mean or refer to the technical support 
document for this action.

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal, including the 
dates they were adopted by BCAQMD and submitted by CARB, which is the 
governor's designee for California SIP submittals.

                        Table 1--Submitted Rules
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       Rule No.            Rule title      Adopted date   Submitted date
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400...................  Permit                  04/24/14        11/06/14
                         Requirements.
401...................  Permit                  04/24/14        11/06/14
                         Exemptions.
432...................  Federal New             04/24/14        11/06/14
                         Source Review.
------------------------------------------------------------------------

    On December 18, 2014, EPA determined that the submittal of these 
rules met 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?

    There is no previous version of Rule 432 in the SIP; EPA approved 
previous versions of the rules to be replaced by Rules 400 and 401 into 
the SIP as indicated in Table 2.

                                           Table 2--SIP Approved Rules
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                                                                  SIP approval
             Rule No.                       Rule title                date         Federal  Register  Citation
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4-4..............................  Exemptions from Permit              05/31/72  37 FR 10856
                                    Requirement.
401..............................  General Requirements........        02/03/87  52 FR 3226
402..............................  Authority to Construct......        02/03/87  52 FR 3226
403..............................  Permit to Operate...........          5/2/01  66 FR 21875
405..............................  Permit Conditions...........        05/31/72  37 FR 10856
406..............................  Emission Calculations.......        02/03/87  52 FR 3226
407..............................  Anniversary Date............        02/03/87  52 FR 3226
420..............................  Standards for Granting              02/03/87  52 FR 3226
                                    Applications.
421..............................  Conditional Approval........        02/03/87  52 FR 3226
424..............................  State Implementation Plan...          5/2/01  66 FR 21875
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    EPA's approval of Rule 401 would have the effect of entirely 
superseding our prior approval of Rule 4-4 in the SIP. Likewise, 
approval of Rules 400 and 432 will have the effect of entirely 
superseding our prior SIP approval of Rules 401, 402, 403, 405, 406, 
407, 420, 421 and 424.

C. What is the purpose of the submitted rules?

    Section 110(a) of the CAA requires states to submit regulations 
that include a pre-construction permit program for certain new or 
modified stationary sources of pollutants, including a permit program 
as required by Part D of Title I of the CAA.
    The purpose of District Rule 400 (Permit Requirements), Rule 401 
(Permit Exemptions) and Rule 432 (Federal New Source Review) is to 
implement a federal preconstruction permit program for all new and 
modified minor sources,

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and new and modified major sources of NAAQS pollutants for which the 
area is designated nonattainment. BCAQMD is currently designated as a 
nonattainment area for the 2008 8-hr ozone and 2006 24-hr 
PM2.5 NAAQS. We present our evaluation under the CAA and 
EPA's regulations of the amended NSR rules submitted by CARB, as 
identified in Table 1, and provide our reasoning in general terms below 
and in more detail in our TSD, which is available in the docket for 
this proposed rulemaking.

II. EPA's Evaluation and Action

A. How is EPA evaluating the rules?

    The submitted rules must meet the CAA's general requirements for 
SIPs and SIP revisions in CAA sections 110(a)(2), 110(l), and 193, as 
well as the applicable requirements contained in part D of title I of 
the Act (sections 172, 173, 182(a) and 189(e)) for a nonattainment NSR 
permit program. In addition, the submitted rules must contain the 
applicable regulatory provisions required by 40 CFR 51.160-51.165 and 
40 CFR 51.307.
    Among other things, section 110 of the Act requires that SIP rules 
be enforceable and provides that EPA may not approve a SIP revision if 
it would interfere with any applicable requirements concerning 
attainment and reasonable further progress or any other requirement of 
the CAA. In addition, section 110(a)(2) and section 110(l) of the Act 
require that each SIP or revision to a SIP submitted by a State must be 
adopted after reasonable notice and public hearing.
    Section 110(a)(2)(C) of the Act requires each SIP to include a 
permit program to regulate the modification and construction of any 
stationary source within the areas covered by the SIP as necessary to 
assure attainment and maintenance of the NAAQS. EPA's regulations at 40 
CFR 51.160-51.164 provide general programmatic requirements to 
implement this statutory mandate commonly referred to as the ``minor 
NSR'' or ``general NSR'' permit program. These NSR program regulations 
impose requirements for SIP approval of State and local programs that 
are more general in nature as compared to the specific statutory and 
regulatory requirements for nonattainment NSR permitting programs under 
Part D of title I of the Act.
    Part D of title I of the Act contains the general requirements for 
areas designated nonattainment for a NAAQS (section 172), including 
preconstruction permit requirements for new major sources and major 
modifications proposing to construct in nonattainment areas (section 
173). Part D of title I of the Act also includes section 182(a), which 
contains the additional requirements for areas designated as a marginal 
ozone nonattainment area, and section 189(e), which requires the 
control of major stationary source of PM10 precursors (and 
hence PM2.5 precursors) ``except where the Administrator 
determines that such sources do not contribute significantly to 
PM10 [and PM2.5] levels which exceed the standard 
in the area.'' Additionally, 40 CFR 51.165 sets forth EPA's regulatory 
requirements for SIP-approval of a nonattainment NSR permit program and 
40 CFR 51.165(a)(13) contains specific requirements for regulating 
sources emitting PM2.5.
    The protection of visibility requirements that apply to NSR 
programs are contained in 40 CFR 51.307. This provision requires that 
certain actions be taken in consultation with the local Federal Land 
Manager if a new major source or major modification may have an impact 
on visibility in any mandatory Class I Federal Area.
    Section 110(l) of the Act prohibits EPA from approving any SIP 
revisions that would interfere with any applicable requirement 
concerning attainment and reasonable further progress (RFP) or any 
other applicable requirement of the CAA. Section 193 of the Act, which 
only applies in nonattainment areas, prohibits the modification of a 
SIP-approved control requirement in effect before November 15, 1990, in 
any manner unless the modification insures equivalent or greater 
emission reductions of such air pollutant.
    Our TSD, which can be found in the docket for this rule, contains a 
more detailed discussion of the approval criteria.

B. Do the rules meet the evaluation criteria?

    EPA has reviewed the submitted rules in accordance with the rule 
evaluation criteria described above. With respect to procedures, based 
on our review of the public process documentation included in the 
November 6, 2014 submittal, we are proposing to approve the submitted 
rules in part because we have determined that BCAQMD has provided 
sufficient evidence of public notice and opportunity for comment and 
public hearings prior to adoption and submittal of these rules, in 
accordance with the requirements of CAA sections 110(a)(2) and 110(l).
    With respect to substantive requirements, we have reviewed the 
submitted rules in accordance with the evaluation criteria discussed 
above. We are proposing to approve Rules 400 and 401 as part of 
BCAQMD's general NSR permitting program because we have determined that 
these rules satisfy the substantive statutory and regulatory 
requirements for a general NSR permit program as contained in CAA 
section 110(a)(2)(C) and 40 CFR 51.160-51.164.
    In addition, we are proposing a limited approval of Rule 432 
because we have determined that Rule 432 satisfies all of the statutory 
and regulatory requirements for a nonattainment NSR permit program as 
set forth in the applicable provisions of part D of title I of the Act 
(sections 172, 173 and 182(a)) and in 40 CFR 51.165 and 40 CFR 51.307.
    We are also proposing a limited disapproval of Rule 432 because we 
have determined that the rule does not fully satisfy CAA section 189(e) 
requirements for regulation of PM2.5 precursors. The rule 
does not specify ammonia as a PM2.5 precursor and the 
demonstration provided by Butte County as part of their NSR program 
submittal is not adequate to allow the Administrator to determine 
whether potential new major sources and major modifications of ammonia 
emissions will not contribute significantly to PM2.5 levels 
that exceed the standard in the area. Our TSD for this action contains 
additional information regarding our proposed limited disapproval.
    EPA is also proposing to find that it is acceptable for BCAQMD to 
not incorporate the NSR Reform provisions of 40 CFR 51.165 into its NSR 
permit program because BCAQMD's permitting program will not be any less 
stringent than the federal permitting program. In addition, EPA is 
proposing to find that Rules 400, 401 and 432 meet the statutory 
requirements for SIP revisions as specified in sections 110(l) and 193 
of the CAA.
    Please see our TSD for more information regarding our evaluation of 
Rules 400, 401 and 432.

C. Proposed Action and Public Comment

    As authorized by CAA section 110(k)(3) and 301(a), we are proposing 
approval of Rule 400 (Permit Requirements) and Rule 401 (Permit 
Exemptions), and we are proposing limited approval and limited 
disapproval of Rule 432 (Federal New Source Review) into the BCAQMD 
portion of the California SIP. If finalized, this action will 
incorporate the submitted rules into the SIP, including those 
provisions identified as

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deficient.\1\ The approval of Rule 432 is limited because EPA is 
simultaneously proposing a limited disapproval of Rule 432 under 
section 110(k)(3). If this limited disapproval is finalized, it will 
trigger sanctions under CAA section 179 and 40 CFR 52.31 unless the EPA 
approves subsequent SIP revisions that correct the rule deficiencies 
within 18 months of the effective date of the final action.
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    \1\ If this proposed rule is finalized, Butte County Rules 400, 
401 and 432, will supersede the existing SIP approved rules listed 
in Table 2.
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    Note that Rule 432 has been adopted by the BCAQMD, and the EPA's 
final limited disapproval would not prevent the local agency from 
enforcing it. The limited disapproval also would not prevent any 
portion of the rule from being incorporated by reference into the 
federally enforceable SIP as discussed in a July 9, 1992 EPA memo found 
at: http://www.epa.gov/nsr/ttnnsr01/gen/pdf/memo-s.pdf.
    We will accept comments from the public on the proposed limited 
approval and limited disapproval for the next 30 days.

III. 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 finalize the 
incorporation by reference the BCAQMD rules described in Table 1 of 
this preamble. The EPA has made, and will continue to make, these 
materials available electronically through www.regulations.gov and at 
the EPA Region IX Office (please contact the person identified in the 
FOR FURTHER INFORMATION CONTACT section of this preamble for more 
information).

IV. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA because this action does not impose additional requirements 
beyond those imposed by state law.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not impose any requirements on small entities beyond those 
imposed by state law.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. This action does not impose additional requirements 
beyond those imposed by state law. Accordingly, no additional costs to 
State, local, or tribal governments, or to the private sector, will 
result from this action.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will 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.

F. Executive Order 13175: Coordination With Indian Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175, because the SIP is not approved to apply on any 
Indian reservation land or in any other area where the EPA or an Indian 
tribe has demonstrated that a tribe has jurisdiction, and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law. Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not impose additional 
requirements beyond those imposed by state law.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    Section 12(d) of the NTTAA directs the EPA to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. The EPA 
believes that this action is not subject to the requirements of section 
12(d) of the NTTAA because application of those requirements would be 
inconsistent with the CAA.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Population

    The EPA lacks the discretionary authority to address environmental 
justice in this rulemaking.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, New Source Review, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Volatile 
organic compounds.

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

    Dated: August 9, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016-19766 Filed 8-18-16; 8:45 am]
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