[Federal Register Volume 81, Number 213 (Thursday, November 3, 2016)]
[Proposed Rules]
[Pages 76547-76550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26613]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R09-OAR-2016-0215; FRL-9954-91-Region 9]
Partial Approval and Partial Disapproval of California Air Plan
Revisions; South Coast Air Quality Management District
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing a
partial approval and partial disapproval of a revision to the South
Coast Air Quality Management District (SCAQMD or District) portion of
the California State Implementation Plan (SIP). This revision concerns
the District's demonstration regarding Reasonably Available Control
Technology (RACT) requirements for the 2008 8-hour ozone National
Ambient Air Quality Standard (NAAQS) in the South Coast Air Basin and
Coachella Valley ozone nonattainment areas. We are proposing action on
a local SIP revision under the Clean Air Act (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 December 5, 2016.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2016-0215 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, 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 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: Stanley Tong, EPA Region IX, (415)
947-4122, [email protected].
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,''
and ``our'' refer to the EPA.
Table of Contents
I. The State's Submittal
A. What document did the State submit?
B. Are there other versions of this document?
C. What is the purpose of the RACT SIP submission?
II. The EPA's Evaluation and Proposed Action
A. How is the EPA evaluating the RACT SIP submission?
B. Does the RACT SIP submission meet the evaluation criteria?
C. What are the RACT deficiencies?
D. The EPA's Recommendations To Further Improve the RACT SIP
E. Proposed Action and Public Comment
III. Statutory and Executive Order Reviews
I. The State's Submittal
A. What document did the State submit?
Table 1 lists the document addressed by this proposal with the date
that it was adopted by the local air agency and submitted by the
California Air Resources Board (CARB).
Table 1--Submitted Document
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Local agency Document Adopted Submitted
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SCAQMD.................................... SCAQMD 2016 Air Quality Management 06/06/14 07/18/14
Plan (AQMP) Reasonably Available
Control Technology (RACT)
Demonstration ``2016 AQMP RACT
SIP''.
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On January 18, 2015, the submittal for the SCAQMD 2016 AQMP RACT
SIP was deemed by operation of law 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 this document?
There is no previous version of this document in the SCAQMD portion
of the California SIP for the 2008 8-hour ozone standard.
C. What is the purpose of the RACT SIP submission?
Volatile Organic Compounds (VOCs) and nitrogen oxides
(NOX) help produce ground-level ozone, smog and particulate
matter (PM), which harm human health and the environment. Section
110(a) of the CAA requires states to submit regulations that control
VOC and NOX emissions. Sections 182(b)(2) and (f) require
that SIPs for ozone nonattainment areas classified as moderate or above
implement RACT for any source covered by a Control Techniques
Guidelines (CTG) document and for any major source of VOCs or
NOX.
The SCAQMD is subject to the RACT requirement as it is authorized
under state law to regulate stationary sources in the South Coast Air
Basin (``South Coast''), which is classified as an extreme
nonattainment area, and in the Coachella Valley portion of Riverside
County (``Coachella Valley''), which is classified as a severe-15
nonattainment area for the 2008 8-hour ozone NAAQS (40 CFR 81.305); 77
FR 30088 at 30101 and 30103 (May 21, 2012). Therefore, the SCAQMD must,
at a minimum, adopt RACT-level controls for all sources covered by a
CTG document and for all major non-CTG sources of VOCs or
NOX within the two nonattainment areas. Any stationary
source that emits or has the potential to emit at least 10 tons per
year of VOCs or NOX is a major stationary source in an
extreme ozone nonattainment area (CAA section 182(e) and (f)), and any
stationary source that emits or has the potential to emit at least 25
tons per year of VOCs or NOX is a major stationary source in
a severe ozone nonattainment area (CAA section 182(d) and (f)).
Section III.D of the preamble to the EPA's final rule to implement
the 2008 ozone NAAQS (80 FR 12264, March 6, 2015) discusses RACT
requirements. It states in part that RACT SIPs must contain adopted
RACT regulations, certifications where appropriate that existing
provisions are RACT, and/or negative declarations that there are no
sources in the nonattainment area covered by a specific CTG source
category and that states must submit appropriate supporting information
for
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their RACT submissions as described in the EPA's implementation rule
for the 1997 ozone NAAQS. See id., at 12278; 70 FR 71612, at 71652
(November 29, 2005). The submitted document provides SCAQMD's analyses
of its compliance with the CAA section 182 RACT requirements for the
2008 8-hour ozone NAAQS. The EPA's technical support document (TSD) has
more information about the District's submission and the EPA's
evaluation thereof.
II. The EPA's Evaluation and Proposed Action
A. How is the EPA evaluating the RACT SIP submission?
SIP rules must be enforceable (see CAA section 110(a)(2)), must not
interfere with applicable requirements concerning attainment and
reasonable further progress or other CAA requirements (see CAA section
110(l)), and must not modify certain SIP control requirements in
nonattainment areas without ensuring equivalent or greater emissions
reductions (see CAA section 193). Generally, SIP rules must require
RACT for each category of sources covered by a CTG document as well as
each major source of VOCs or NOX in ozone nonattainment
areas classified as moderate or above (see CAA section 182(b)(2)). The
SCAQMD regulates an extreme ozone nonattainment area (i.e., the South
Coast Air Basin) and a severe ozone nonattainment area (i.e., Coachella
Valley) (see 40 CFR 81.305), so the District's rules must implement
RACT.
Guidance and policy documents that we use to evaluate
enforceability, revision/relaxation and rule stringency requirements
for the applicable criteria pollutants include the following:
1. ``Final Rule to Implement the 8-hour Ozone National Ambient Air
Quality Standard--Phase 2'' (70 FR 71612; November 29, 2005).
2. ``State Implementation Plans; General Preamble for the
Implementation of Title I of the Clean Air Act Amendments of 1990,''
57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992).
3. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and
Deviations,'' EPA, May 25, 1988 (the Bluebook, revised January 11,
1990).
4. ``Guidance Document for Correcting Common VOC & Other Rule
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
5. ``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.
6. Memorandum from William T. Harnett to Regional Air Division
Directors, (May 18, 2006), ``RACT Qs & As--Reasonably Available
Control Technology (RACT) Questions and Answers''.
7. RACT SIPs, Letter dated March 9, 2006 from EPA Region IX (Andrew
Steckel) to CARB (Kurt Karperos) describing Region IX's
understanding of what constitutes a minimally acceptable RACT SIP.
8. RACT SIPs, Letter dated April 4, 2006 from EPA Region IX (Andrew
Steckel) to CARB (Kurt Karperos) listing EPA's current CTGs, ACTs,
and other documents which may help to establish RACT.
9. ``Implementation of the 2008 National Ambient Air Quality
Standards for Ozone: State Implementation Plan Requirements'' (80 FR
12264; March 6, 2015).
B. Does the RACT SIP submission meet the evaluation criteria?
The 2016 AQMP RACT SIP (submitted July 18, 2014) builds on the
District's previous RACT SIP demonstrations: The 2006 RACT SIP (73 FR
76947, December 18, 2008), the 2007 AQMP (77 FR 12674, March 1, 2012)
and the 2012 AQMP (79 FR 52526, September 3, 2014). The 2016 AQMP RACT
SIP concludes, after a review and evaluation of more than 30 rules
recently developed by other ozone nonattainment air districts, that
SCAQMD's current rules meet the EPA's criteria for RACT acceptability
and inclusion in the SIP for the 2008 8-hour ozone NAAQS. A RACT SIP
should consider requirements that apply to CTG source categories and
all major stationary sources of VOC or NOX emissions.
With regard to CTG and non-CTG source categories, based on its
research of the District's permit databases and telephone directories
for sources in the District for the 2007 AQMP, the 2012 AQMP, and the
2016 AQMP RACT SIP, the SCAQMD concluded that all identified sources
have applicable RACT rules. As such, we characterize the 2016 AQMP RACT
SIP as a certification-type of RACT SIP submittal. Because the
District's VOC and NOX rules apply equally in both the South
Coast and Coachella Valley, the District's certification in this regard
extends to both ozone nonattainment areas.
Where there are no existing sources covered by a particular CTG
document, states may, in lieu of adopting RACT requirements for those
sources, adopt negative declarations certifying that there are no such
sources in the relevant nonattainment area. The 2007 AQMP indicates
there are existing sources for each CTG document issued before 2006,
and the 2012 AQMP indicates there are existing sources for each CTG
document issued from 2006 to 2008. The EPA has not issued any CTGs
since 2008. The SCAQMD did not report any negative declarations in the
2016 AQMP RACT SIP as well.
However, subsequent to its 2016 AQMP RACT SIP submittal, the EPA
had several discussions with the SCAQMD and concluded there may be two
CTG categories where the District has no sources applicable to the
CTGs. For the Paper, Film and Foil coatings CTG, it appears from a
review of: The standard industrial codes (SIC) applicable to the CTG,
the CARB's emissions inventory, and discussion with the SCAQMD permit
engineer, that the SCAQMD has no paper coating sources with coating
lines exceeding the CTG's applicability threshold (EPA 453/R-07-003).
For the Surface Coating Operations at Shipbuilding and Repair
Facilities CTG (61 FR-44050, August 27, 1996 and EPA-453/R-94-032), the
SCAQMD indicates it only has one active title V shipyard facility that
is subject to Rule 1106, Marine Coating Operations. The one coating
category in Rule 1106 that exceeds the CTG's VOC content limit is
inorganic zinc and the District indicates inorganic zinc coating is not
used at the facility. Consequently, the EPA recommends that the SCAQMD
evaluate, and adopt where appropriate, negative declarations for these
two CTG categories. The EPA concurs that there are no other negative
declarations.
Based on our review and evaluation of the documentation provided by
the SCAQMD in the 2016 AQMP RACT SIP and earlier plans, we agree that
existing District rules approved in the SIP meet or are more stringent
than the corresponding CTG limits and exemption thresholds for each
category of VOC sources covered by a CTG document, and given that the
CTG documents represent presumptive RACT level of control, we conclude
that existing District rules require the implementation of RACT for
each category of VOC sources covered by a CTG document located in the
South Coast and Coachella Valley.
With respect to major stationary sources of VOC or NOX
emissions, the District provided supplemental information identifying
21 new major title V sources since its 2006 RACT SIP certification and
provided a list of equipment at these facilities that emit greater than
5 tpy. The District concluded that the equipment were covered by rules
that implement RACT. The District's efforts to identify all new major
sources appears to be thorough, and we agree that existing District
rules approved in the SIP require implementation of RACT for all major
non-CTG VOC sources in the South
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Coast and Coachella Valley. We disagree that all major NOX
sources in the South Coast are subject to SIP-approved RACT rules or
RACT-equivalent programs as explained in the following section.
C. What are the RACT deficiencies?
Within the South Coast, major NOX sources are included
in SCAQMD's Regulation XX (``Regional Clean Air Incentives Market
(RECLAIM)'') program. The District adopted the RECLAIM program in 1993
to reduce emissions from the largest stationary sources of
NOX and oxides of sulfur (SOX) emissions through
a market-based trading program that establishes annual declining
NOX and SOX allocations (also called ``facility
caps'') and allows covered facilities to comply with their facility
caps by installing pollution control equipment, changing operations, or
purchasing RECLAIM trading credits (RTCs) from the RECLAIM market.
Section 40440 of the California Health and Safety Code (CH&SC) requires
the District to monitor advances in best available retrofit control
technology (BARCT) and periodically to reassess the overall facility
caps to ensure that the facility caps are equivalent, in the aggregate,
to BARCT emission levels imposed on affected sources.\1\ Facilities
subject to RECLAIM are exempted from a number of District prohibitory
rules that otherwise apply to sources of NOX and
SOX emissions in the South Coast.\2\ With certain
exceptions, facilities located in Coachella Valley are not included in
the RECLAIM program.
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\1\ BARCT is defined as ``an emission limitation that is based
on the maximum degree of reduction achievable taking into account
environmental, energy, and economic impacts by each class or
category of source.'' CH&SC section 40406. For the purposes of
comparison, the EPA defines RACT as the lowest emission limitation
that a particular source is capable of meeting by the application of
control technology that is reasonably available considering
technological and economic feasibility. 44 FR 53762 (September 17,
1979). As such, we generally find that BARCT level of control meets
or exceeds RACT level of control.
\2\ District Rule 2001 (``Applicability''), as amended May 6,
2005. Facilities in Coachella Valley are prohibited from entering
the RECLAIM program except as allowed under Rule 2001(i)(1)(I).
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Under longstanding EPA interpretation of the CAA, a market-based
cap and trade program may satisfy RACT requirements by ensuring that
the level of emission reductions resulting from implementation of the
program will be equal, in the aggregate, to those reductions expected
from the direct application of RACT on all affected sources within the
nonattainment area.\3\ The EPA approved the RECLAIM program into the
California SIP in June 1998 based in part on a conclusion that the
NOX emission caps in the program satisfied the RACT
requirements of CAA section 182(b)(2) and (f) for covered
NOX emission sources in the aggregate.\4\ In 2005 and 2010,
the District adopted revisions to the NOX RECLAIM program,
which the EPA approved in 2006 and 2011, respectively, based in part on
conclusions that the revisions continued to satisfy NOX RACT
requirements.\5\ We refer to the current NOX RECLAIM program
as approved into the SIP as the ``2010 RECLAIM program.''
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\3\ 59 FR 16690 (April 7, 1994) and EPA, ``Improving Air Quality
with Economic Incentive Programs,'' EPA-452/R-01-001 (January 2001),
at Section 16.7.
\4\ 61 FR 57834 (November 8, 1996) and 63 FR 32621 (June 15,
1998).
\5\ 71 FR 51120 (August 29, 2006) and 76 FR 50128 (August 12,
2011).
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The 2016 AQMP RACT SIP relies on the 2010 RECLAIM program to
satisfy the RACT requirements for major NOX sources in the
South Coast and Coachella Valley. However, based on new information
contained in SCAQMD's December 2015 Draft Final Staff Report (``2015
staff report'') revising Regulation XX, we find that additional
NOX reductions are now required to achieve RACT as evidenced
by the lack of controls on some refinery boiler units and the
District's proposal to reduce the NOX RECLAIM emissions
cap.\6\ A more detailed discussion about RECLAIM and the requirement
that the program ensures, in the aggregate, NOX emissions
reductions equivalent to RACT-level controls can be found in our
partial approval/disapproval of the South Coast Moderate Area Plan for
the 2006 PM2.5 NAAQS.\7\
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\6\ Draft Final Staff Report, Proposed Amendments to Regulation
XX Regional Clean Air Initiatives Market (RECLAIM) NOX
RECLAIM, December 4, 2015 http://www.aqmd.gov/docs/default-source/Agendas/Governing-Board/2015/2015-dec4-030.pdf?sfvrsn=9.
\7\ 81 FR 22025, 22027 and 22028 (April 14, 2016) discussing an
absence of a demonstration that the 2010 RECLAIM program ensures, in
the aggregate, NOX emission reductions equivalent to
RACT-level controls.
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Thus, based on our evaluation discussed above, we propose to
partially approve and partially disapprove the 2016 AQMP RACT SIP
certification because, while we find that existing SIP-approved
District rules implement RACT for all sources covered by a CTG document
and for all major non-CTG VOC sources in both the South Coast and
Coachella Valley, we also find that the 2010 RECLAIM program does not
achieve NOX emission reductions equal, in the aggregate, to
those reductions expected from the direct application of RACT on all
major NOX sources in the South Coast.\8\
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\8\ This finding does not apply to Coachella Valley because we
have determined that the two RECLAIM facilities located in Coachella
Valley are equipped with control technology that meets or exceeds
RACT level of control.
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We note that, on December 4, 2015, the SCAQMD adopted a new
NOX emissions cap that reflects a level of 2 ppmv
NOX for refinery boilers/heaters >40 MMBtu/hr indicating
that controls ``are either commercially available, achieved-in-practice
and/or can be designed to achieve 2 ppmv NOX in a cost-
effective manner.'' \9\ However, the amended RECLAIM program has not
been submitted to the EPA as a SIP revision and such a submittal would
need to include a demonstration of how the RECLAIM program, as amended,
provides for NOX emission reductions equal, in the
aggregate, to those reductions expected from the direct application of
RACT on all major NOX sources in the South Coast.
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\9\ Draft Final Staff Report, Proposed Amendments to Regulation
XX Regional Clean Air Initiatives Market (RECLAIM) NOX
RECLAIM, December 4, 2015, (page 92).
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D. The EPA's Recommendations To Further Improve the RACT SIP
Our TSD for the 2016 AQMP RACT SIP provides additional
recommendations for future rule improvements.
E. Proposed Action and Public Comment
For the reasons discussed above and explained more fully in our
TSD, the EPA proposes to partially approve and partially disapprove the
CARB's July 18, 2014 submittal of the SCAQMD 2016 AQMP RACT SIP as a
revision to the California SIP. Under CAA section 110(k)(3), we propose
to approve the 2016 AQMP RACT SIP, with the exception of major
NOX sources in the South Coast, as satisfying the RACT
requirements of CAA section 182(b)(2) and (f) for the South Coast and
the Coachella Valley ozone nonattainment areas.
Also under CAA section 110(k)(3), we propose to disapprove the 2016
AQMP RACT SIP as it pertains to major NOX sources in the
South Coast based on the EPA's finding that the 2010 RECLAIM program no
longer ensures NOX reductions equivalent to RACT-level
controls at each individual major NOX source in the South
Coast.
If finalized, the partial disapproval would trigger the 2-year
clock for the federal implementation plan (FIP) requirement under
section 110(c). In addition, final disapproval would trigger sanctions
under CAA section 179 and 40 CFR 52.31 unless the EPA approves a
subsequent SIP revision that corrects the RACT SIP deficiency within
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18 months of the effective date of the final action. We note that our
partial disapproval of the District's Moderate Area Plan for the 2006
PM2.5 NAAQS, 81 FR 22025 (April 14, 2016), has already
started CAA sanction and FIP clocks for a NOX RACT
deficiency. Termination of those existing clocks by EPA approval of a
SIP revision submittal addressing the NOX RACT deficiency in
the Moderate Area Plan would also terminate sanction/FIP clocks
associated with final partial disapproval of the RACT SIP if the SIP
revision demonstrates compliance with both the Reasonably Available
Control Measure (RACM)/RACT requirement for PM2.5 and the
section 182 RACT requirement for ozone with respect to stationary
NOX sources in the South Coast.
We will accept comments from the public on the proposed partial
approval and partial disapproval for the next 30 days.
III. 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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, Nitrogen dioxide, Ozone,
Reporting and recordkeeping requirements, Oxides of sulfur, Volatile
organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: October 19, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016-26613 Filed 11-2-16; 8:45 am]
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