[Federal Register Volume 82, Number 54 (Wednesday, March 22, 2017)]
[Rules and Regulations]
[Pages 14608-14611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05557]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0727; FRL-9960-32-Region 9]


Limited Federal Implementation Plan; Prevention of Significant 
Deterioration Requirements for Fine Particulate Matter (PM2.5); 
California; North Coast Unified Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is finalizing a 
limited Federal Implementation Plan (FIP) under the Clean Air Act (CAA 
or Act) to apply to the North Coast Unified Air Quality Management 
District (North Coast Unified AQMD or District) in California. This 
limited FIP will implement provisions to regulate fine particulate 
matter (PM2.5) under the CAA Prevention of Significant 
Deterioration (PSD) program within the District. The EPA previously 
issued two findings of failure to submit a State Implementation Plan 
(SIP) addressing these PSD requirements and also issued a partial 
disapproval action applicable to the North Coast Unified AQMD portion 
of the California SIP that triggered the duty under CAA section 
110(c)(1) for the EPA to promulgate this limited FIP. Under this final 
rule, the EPA will be the CAA PSD permitting authority for any new or 
modified major sources subject to PSD review for PM2.5 or 
its precursors within the District.

DATES: This rule is effective on April 21, 2017.

ADDRESSES: The EPA has established Docket ID Number EPA-R09-OAR-2016-
0727 for this action. All documents in the docket are listed in the 
www.regulations.gov index for this rulemaking. Although listed in the 
index, some information is not publicly available (e.g., CBI or other 
information whose disclosure is restricted by statute). Certain other 
material, such as copyrighted material, will be publicly available only 
in hard copy form. Publicly available docket materials are available 
either electronically at www.regulations.gov or in hard copy at EPA 
Region IX, 75 Hawthorne Street, San Francisco, CA 94105 during normal 
business hours. For security purposes, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section during normal 
business hours to view a hard copy of the docket.

FOR FURTHER INFORMATION CONTACT: Laura Yannayon, (415) 972-3534 or 
[email protected].

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

Table of Contents

I. Proposed Action
II. Public Comments
III. EPA Action
IV. Statutory and Executive Order Reviews

I. Proposed Action

    On December 22, 2016 (81 FR 93872), the EPA proposed a limited FIP 
for the North Coast Unified AQMD in California, which would apply the 
EPA's PSD regulatory program under 40 CFR 52.21 specifically to sources 
in the District subject to PSD review for emissions of PM2.5 
or PM2.5 precursors. CAA section 110(c)(1) requires the EPA 
Administrator to promulgate a FIP at any time within two years after 
the Administrator either finds that a state has failed to make a 
required SIP submission or disapproves a state's SIP in whole or in 
part, unless the state submits and the EPA approves a SIP that corrects 
the deficiency before the Administrator promulgates the FIP. In this 
case, as discussed in the EPA's proposal for this limited FIP action, 
the EPA is required to promulgate this FIP for sources subject to PSD 
review for emissions of PM2.5 or PM2.5 precursors 
in the North Coast Unified AQMD in order to address SIP deficiencies 
relating to the PSD requirements for such sources that EPA identified 
in earlier actions; California has not submitted revised rules that 
resolve these deficiencies and thus we have not approved a SIP 
submittal for the North Coast Unified AQMD to correct these 
deficiencies.
    The requirement that the EPA promulgate this limited FIP for the 
North Coast Unified AQMD stems from several actions taken previously by 
the EPA in accordance with CAA requirements. In 2008, the EPA 
promulgated a rulemaking finalizing regulations to implement the New 
Source Review program for PM2.5 (PM2.5 NSR 
Rule).\1\ The PM2.5 NSR Rule required, among other things, 
that states develop SIPs addressing the PSD permitting requirements for 
the regulation of major stationary sources and major modifications of 
PM2.5 emissions, including such sources emitting precursors 
of PM2.5. In 2010, the EPA promulgated a rulemaking amending 
the PSD program regulations for PM2.5 to add provisions 
governing the maximum allowable increases in ambient pollutant 
concentrations (increments), with which new major stationary sources 
and major modifications of PM2.5 or PM2.5 
precursor emissions must demonstrate compliance as a condition of 
obtaining a PSD permit (PM2.5 Increments Rule).\2\ The 
PM2.5 Increments Rule requires states to submit SIPs 
modifying their PSD permitting regulations to incorporate the 
PM2.5 increment provisions.
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    \1\ Implementation of the New Source Review (NSR) Program for 
Particulate Matter Less than 2.5 Micrometers (PM2.), 73 
FR 28321 (May 16, 2008).
    \2\ Prevention of Significant Deterioration (PSD) for 
Particulate Matter Less than 2.5 Micrometers (PM2.5)--
Increments, Significant Impact Levels (SILs) and Significant 
Monitoring Concentrations (SMC), 75 FR 64864 (Oct. 20, 2010). The 
PM2.5 Increments Rule also promulgated several optional 
revisions to the PSD permitting program which are not addressed in 
this notice.
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    On January 15, 2013, the EPA issued a finding of failure to submit 
for the State of California in which it found that California had 
failed to make an infrastructure \3\ SIP submittal providing certain 
required basic program elements of CAA section 110(a)(2) that are 
necessary to implement the 2008 Ozone National Ambient Air Quality 
Standard (NAAQS).\4\ Relevant here, the EPA found that California had 
not submitted a SIP to address the PSD permitting requirements of CAA 
section 110(a)(2)(C), (D)(i)(II), and (J) for areas including the North 
Coast Unified AQMD. That finding resulted in a deadline of February 14, 
2015, for the EPA to promulgate a FIP pursuant to CAA section 110(c)(1) 
to address the outstanding SIP elements unless, prior to that time, the 
State submitted, and the EPA approved, a SIP that corrected the 
identified deficiencies.\5\
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    \3\ We refer to such SIP revision submittals as 
``infrastructure'' SIPs because they are intended to address the 
basic structural SIP requirements for new or revised NAAQS.
    \4\ 78 FR 2882, 2889.
    \5\ See 78 FR at 2886.
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    On April 1, 2016, the EPA published a final rule partially 
approving and partially disapproving several CAA infrastructure SIP 
revisions submitted by the State of California related to the 
implementation, maintenance and enforcement of the NAAQS for ozone, 
PM2.5, lead, nitrogen dioxide (NO2), and sulfur 
dioxide (SO2).\6\ We partially

[[Page 14609]]

disapproved a portion of these infrastructure SIP submittals as they 
pertained to the North Coast Unified AQMD with respect to the PSD-
related requirements of CAA sections 110(a)(2)(C), (D)(i)(II), and (J) 
for all of these NAAQS, in part because we found that the District's 
SIP-approved PSD program did not include requirements for the 
regulation of PM2.5 and PM2.5 precursors, 
condensable PM2.5, or PSD increments for 
PM2.5.\7\ This infrastructure SIP partial disapproval action 
also triggered a duty for the EPA to promulgate a FIP pursuant to CAA 
section 110(c)(1) to address the identified deficiencies related to the 
District's PSD program for PM2.5, unless, prior to that 
time, the State submitted, and the EPA approved, a SIP that corrected 
the identified deficiencies.\8\ The State has not submitted a SIP 
revision that would correct the North Coast Unified AQMD's SIP 
deficiencies relating to the PSD program for PM2.5 and 
therefore EPA has not approved such a SIP revision. Thus, for these 
PM2.5 PSD requirements, the EPA remains subject to the duty 
to promulgate a FIP for the District that was triggered by our January 
15, 2013 finding of failure to submit and our April 1, 2016 partial 
disapproval action for the infrastructure SIP requirements for the 
NAAQS discussed above.
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    \6\ 81 FR 18766.
    \7\ The EPA's April 1, 2016 partial disapproval action for 
infrastructure SIP requirements in CAA sections 110(a)(2)(C), 
(D)(i)(II), and (J) for the North Coast Unified AQMD was also based 
on the EPA's finding that the District's SIP-approved PSD program 
did not regulate oxides of nitrogen (NOX) as an ozone 
precursor. 81 FR at 18773. However, we noted in that action that the 
EPA had already promulgated a limited FIP on August 8, 2011 to 
remedy that SIP deficiency, and thus our 2016 partial disapproval 
action did not trigger a new PSD FIP obligation related to 
NOX as an ozone precursor. See 81 FR at 18773, 18775; see 
also 76 FR 48006 (Aug. 8, 2011).
    \8\ See 81 FR at 18775-18776.
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    On September 2, 2014, the EPA published a final rule finding that 
the North Coast Unified AQMD had failed to make a complete submittal to 
address new requirements for PM2.5 increments in its PSD 
program as required by implementing regulations that the EPA 
promulgated on October 20, 2010.\9\ That finding resulted in a duty and 
a deadline of October 2, 2016 for the EPA to promulgate a FIP pursuant 
to CAA section 110(c)(1) to address these outstanding SIP elements 
unless, prior to that time, the State submitted, and the EPA approved, 
a SIP that corrected the identified deficiencies. As noted above, the 
EPA has not approved a SIP revision for California that would address 
the requirements for PM2.5 increments in the PSD program for 
the North Coast Unified AQMD, thus the EPA remains subject to the 
requirement that it promulgate a FIP to do so.
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    \9\ 79 FR 51913.
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    In sum, the EPA has not approved a PSD SIP revision for California 
that would address the District's PM2.5 PSD program SIP 
deficiencies identified in the January 15, 2013, September 2, 2014, and 
April 1, 2016 EPA actions discussed above. Accordingly, as authorized 
by CAA section 110(c)(1), the EPA proposed to promulgate a limited FIP 
for the North Coast Unified AQMD in order to address the identified 
deficiencies in the State's PSD program with respect to the regulation 
of major stationary sources and major modifications of sources subject 
to PSD review for emissions of PM2.5 or PM2.5 
precursors.

II. Public Comments

    The EPA's proposed FIP action provided a 30-day public comment 
period, which closed on January 23, 2017. The EPA also preliminarily 
scheduled a public hearing for January 13, 2017 to receive written and 
oral comments on our proposed action, which we stated would be held 
only if we received a written request for such a hearing by December 
29, 2016. No one requested such a hearing during this period and 
therefore the hearing was canceled. During the public comment period, 
we received no comments on our proposed action.

III. EPA Action

    Under CAA section 110(c)(1) and for the reasons discussed in our 
December 22, 2016 proposed rule and in the Proposed Action section of 
this notice, we are finalizing the limited PSD FIP for the North Coast 
Unified AQMD as proposed. CAA section 110(c)(1) requires the 
Administrator to promulgate a FIP at any time within two years after 
the Administrator either finds that a state has failed to make a 
required submission or disapproves a state's SIP in whole or in part, 
unless the state submits and the EPA approves a SIP that corrects the 
deficiency before the Administrator promulgates a FIP. As indicated 
earlier in this notice, the EPA has not approved a PSD SIP revision for 
California to regulate PM2.5 and PM2.5 precursors 
in the North Coast Unified AQMD that would address the District's 
PM2.5 PSD program deficiencies identified in the January 15, 
2013, September 2, 2014, and April 1, 2016 EPA actions discussed above. 
Accordingly, as authorized by CAA section 110(c)(1), the EPA is 
promulgating a limited FIP for the North Coast Unified AQMD in order to 
address the identified deficiencies in the State's PSD program with 
respect to the regulation of major stationary sources and major 
modifications of sources subject to PSD review for emissions of 
PM2.5 or PM2.5 precursors.
    This limited FIP consists of the EPA regulations found in 40 CFR 
52.21, including the PSD applicability provisions, with a limitation to 
assure that, strictly for purposes of this rulemaking, the FIP applies 
only to the regulation of PM2.5 and PM2.5 
precursors. Accordingly, for the purposes of ensuring compliance with 
the PSD permitting requirements with respect to PM2.5 and 
PM2.5 precursors for sources within the North Coast Unified 
AQMD, the EPA will serve as the PSD permitting authority.
    The EPA has previously promulgated limited CAA PSD FIPs for the 
North Coast Unified AQMD to implement the federal PSD permitting 
program under 40 CFR 52.21 for certain other sources and pollutants, 
including the PSD program as it regulates oxides of nitrogen 
(NOX) as an ozone precursor, as discussed above; these 
limited FIPs remain in effect. See 40 CFR 52.270(b)(2). The EPA and the 
District have entered into partial delegation agreements pursuant to 40 
CFR 52.21(u), dated January 8, 1993 and October 6, 2015, whereby the 
EPA has delegated authority to the District to conduct PSD review for 
certain sources subject to these limited PSD FIPs. The District may 
similarly seek a partial delegation of authority from the EPA, pursuant 
to 40 CFR 52.21(u), to conduct PSD review for the sources regulated 
under this limited PSD FIP. For all other major emitting facilities and 
pollutants not covered by the limited PSD FIPs applicable to the 
District as specified in 40 CFR 52.270(b)(2), the North Coast Unified 
AQMD will continue to serve as the PSD permitting authority under its 
SIP-approved PSD program.
    This limited FIP is narrow in scope, in that it will only address 
the PM2.5 PSD deficiencies for the District that were 
identified in our 2016 infrastructure SIP partial disapproval action. 
We note that such deficiencies include the deficiencies for PSD 
requirements for PM2.5 increments that were also the focus 
of the EPA's September 2, 2014 finding of failure to submit action. 
Today's final limited FIP action will satisfy the remaining FIP 
requirements for the North Coast Unified AQMD that were triggered by 
our January 15, 2013 finding of failure to submit relating to ozone 
infrastructure SIP requirements; our September 2, 2014 finding of 
failure to submit related to the District's PSD requirements for 
PM2.5 increments; and

[[Page 14610]]

our April 1, 2016 partial disapproval action for the infrastructure SIP 
requirements for the NAAQS for ozone, PM2.5, lead, 
NO2, and SO2. This limited FIP will be codified 
in 40 CFR 52.270(b)(2)(v).
    This limited FIP will remain in place until California submits a 
SIP revision addressing the identified deficiencies relating to the 
District's PSD program for PM2.5 and we approve that SIP 
revision. The EPA is working with the North Coast Unified AQMD to 
develop District rules that would address these requirements.

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 therefore 
was not submitted to the Office of Management and Budget (OMB) for 
review.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
The OMB has previously approved the information collection requirements 
contained in the existing regulations for PSD (e.g., 40 CFR 52.21) 
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq. and has assigned OMB control number 2060-0003. The OMB control 
numbers for the EPA's regulations in 40 CFR are listed in 40 CFR part 
9.

C. Regulatory Flexibility Act

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. The 
small entities subject to the requirements of this action are a single 
biomass generating facility, which is currently not operating. The 
Agency has determined that this single facility may experience an 
impact associated with the requirements of this action, but only in the 
event that the facility elects to significantly expand its operations. 
The EPA is not aware of any specific new sources that would be subject 
to regulation under this action in the future. We expect a negligible 
financial impact on any facilities subject to the requirements of this 
action because any such facility would be subject to substantially 
similar, and in some respects more stringent, regulatory requirements 
that are already in effect under state and federal law.

D. Unfunded Mandates Reform Act

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. While the EPA's 
action will lead to the application of federal PSD regulations for 
PM2.5 to sources within the North Coast Unified AQMD, 
general PSD requirements for major emitting facilities with emissions 
of other regulated NSR pollutants already apply within the District, 
and thus the incremental impact associated with application of the 
specific requirements of the PSD regulations for certain sources 
emitting PM2.5 or its precursors is expected to be 
relatively minor. In addition, there are few major emitting facilities 
currently located in the District that would be subject to the 
requirements of the FIP. The EPA is not aware of any specific new 
sources that would be subject to regulation under our narrow FIP in the 
future. Accordingly, the EPA has determined that this action does not 
contain an unfunded mandate of $100 million or more as described in 
UMRA, 2 U.S.C. 1531-1538, and that it will not significantly or 
uniquely affect small governments.

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 and Consultation With Indian 
Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175. It will not have substantial direct effects on 
tribal governments, on the relationship between the Federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian tribes. The FIP is not 
applicable on any Indian reservation land or in any other area where 
the 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. Thus, Executive Order 13175 does not apply to this rule.

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, as a limited FIP establishing PSD 
regulatory requirements for the PM2.5 NAAQS for certain 
sources located in the North Coast Unified AQMD, it implements a 
previously promulgated federal standard.

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

    This rule 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

    This rulemaking does not involve technical standards.

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

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations and/or indigenous peoples, as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). 
This action does not affect the level of protection provided to human 
health or the environment. With this action, the EPA is only 
implementing the PSD permitting requirements mandated by the CAA in 
order to ensure compliance with the PM2.5 NAAQS and 
PM2.5 increments, which were promulgated in separate, prior 
rulemaking actions.

K. Congressional Review Act

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

L. Petitions for Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States

[[Page 14611]]

Court of Appeals for the appropriate circuit by May 22, 2017. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule 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. This action may not be challenged later in proceedings 
to enforce its requirements (see section CAA 307(b)(2)).

List of Subjects in 40 CFR Part 52

    Air pollution control, Environmental protection, Incorporation by 
reference, Intergovernmental relations, Lead, Nitrogen oxides, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
dioxide.

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

    Dated: March 14, 2017.
E. Scott Pruitt,
Administrator.
    Part 52, Chapter I, Title 40 of the Code of Federal Regulations 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.

Subpart F--California

0
2. Section 52.270 is amended by adding paragraph (b)(2)(v) to read as 
follows:


Sec.  52.270  Significant deterioration of air quality.

* * * * *
    (b) * * *
    (2) * * *
    (v) Those projects that are major stationary sources or major 
modifications for emissions of PM2.5 or its precursors under 
Sec.  52.21, and those projects that are major stationary sources under 
Sec.  52.21 with the potential to emit PM2.5 or its 
precursors at a rate that would meet or exceed the rates specified at 
Sec.  52.21(b)(23)(i).
* * * * *
[FR Doc. 2017-05557 Filed 3-21-17; 8:45 am]
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