[Federal Register Volume 82, Number 107 (Tuesday, June 6, 2017)]
[Proposed Rules]
[Pages 25996-25999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-11681]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2017-0259; FRL-9963-32-Region 9]


Approval 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 to 
approve revisions to the South Coast Air Quality Management District 
(SCAQMD) portion of the California State Implementation Plan (SIP). 
These revisions concern emissions of oxides of nitrogen 
(NOX) from facilities that emit four or more tons per year 
of NOX or oxides of sulfur (SOX). We are 
proposing to approve local rules to regulate these emission

[[Page 25997]]

sources 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 July 6, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2017-0259 at https://www.regulations.gov, or via email to Andrew 
Steckel, Rulemaking Office Chief at [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 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 https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Nicole Law, EPA Region IX, (415) 947-
4126, [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 rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rule revisions?
II. The EPA's Evaluation and Proposed Action
    A. How is the EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Public Comment and Proposed Action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal with the dates 
that they were adopted by the local air agency and submitted by the 
California Air Resources Board (CARB).

                                            Table 1--Submitted Rules
----------------------------------------------------------------------------------------------------------------
      Local agency                    Rule No.                   Rule title           Amended        Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD..................  2001............................  Applicability.......        12/04/15        03/17/17
SCAQMD..................  2002............................  Allocations for NOX         10/07/16        03/17/17
                                                             and SOX.
SCAQMD..................  2005............................  New Source Review           12/04/15        03/17/17
                                                             for Regional Clean
                                                             Air Incentives
                                                             Market.
SCAQMD..................  2011: Attachment C..............  Requirements for            12/04/15        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             SOX Emissions:
                                                             Quality Assurance
                                                             and Quality Control
                                                             Procedures.
SCAQMD..................  2011: Chapter 3.................  Requirements for            12/04/15        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             SOX Emissions:
                                                             Process Units--
                                                             Periodic Reporting
                                                             and Rule 219
                                                             Equipment.
SCAQMD..................  2012: Attachment C..............  Requirements for            12/04/15        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             NOX Emissions:
                                                             Quality Assurance
                                                             and Quality Control
                                                             Procedures.
SCAQMD..................  2012: Chapter 4.................  Requirements for            12/04/15        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             NOX Emissions:
                                                             Process Units--
                                                             Periodic Reporting
                                                             and Rule 219
                                                             Equipment.
SCAQMD..................  2011: Attachment E..............  Requirements for            02/05/16        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             SOX Emissions:
                                                             Definitions.
SCAQMD..................  2012: Attachment F..............  Requirements for            02/05/16        03/17/17
                                                             Monitoring,
                                                             Reporting, and
                                                             Recordkeeping for
                                                             NOX Emissions:
                                                             Definitions.
----------------------------------------------------------------------------------------------------------------

    On April 17, 2017, the EPA determined that the submittal for SCAQMD 
Rule 2001; SCAQMD Rule 2002; SCAQMD Rule 2005; SCAQMD Rule 2011, 
Attachment C; SCAQMD Rule 2011, Chapter 3; SCAQMD Rule 2012, Attachment 
C; SCAQMD Rule 2012, Chapter 4; SCAQMD Rule 2011, Attachment E; and 
SCAQMD Rule 2012, Attachment F 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?

    We approved earlier versions of Rule 2001; Rule 2011, Attachment C; 
Rule 2011, Chapter 3; Rule 2012, Attachment C; Rule 2012, Chapter 4; 
Rule 2011, Attachment E; and Rule 2012, Attachment F into the SIP on 
August 29, 2006 (71 FR 51120). The SCAQMD adopted revisions to the SIP-
approved versions of these rules on May 6, 2005 and CARB submitted them 
to us on October 20, 2005. We approved earlier versions of Rule 2002 
and Rule 2005 into the SIP on August 12, 2011 (76 FR 50128) and on 
December 20, 2011 (76 FR 78829). The SCAQMD adopted revisions to the 
SIP-approved versions of these rules on November 5, 2010 and June 3, 
2011 and CARB submitted them to us on April 5, 2011 and September 27, 
2011. We are acting on only the most recently submitted versions of 
these rules but have reviewed materials provided with previous 
submittals.

C. What is the purpose of the submitted rule revisions?

    NOx contributes to the formation of ground-level ozone, 
smog and particulate matter (PM), which harm human health and the 
environment. PM, including PM equal to or less than 2.5 microns in 
diameter (PM2.5) and PM equal to or less than 10 microns in 
diameter (PM10), contributes to effects that are harmful to 
human health and the environment, including premature mortality, 
aggravation of respiratory and cardiovascular disease, decreased lung 
function, visibility impairment, and damage to vegetation and 
ecosystems.

[[Page 25998]]

Section 110(a) of the CAA requires states to submit regulations that 
control NOx and PM emissions. SCAQMD's Regional Clean Air 
Incentives Market (RECLAIM) program consists of SCAQMD Rules 2000 
through 2020. The RECLAIM amendments adopted in 2015 and 2016 were 
revisions to Rules 2001; 2002; 2005; 2011, Attachment C; 2011, Chapter 
3; 2012, Attachment C; 2012, Chapter 4; 2011, Attachment E; and 2012, 
Attachment F. The primary purposes of these amendments to RECLAIM were 
to lower the NOx emission cap in the RECLAIM program to 
achieve additional emission reductions, to allow electric generating 
facilities (EGFs) to exit RECLAIM, to add provisions regarding facility 
shutdowns, to create a Regional New Source Review (NSR) Holding Account 
for existing electricity generating facilities constructed after 1993, 
and to implement other administrative and clarifying changes. The EPA's 
technical support document (TSD) has more information about these 
rules.

II. The EPA's Evaluation and Proposed Action

A. How is the EPA evaluating the rules?

    Generally, 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). Because the 
submittal contains SIP rules that are part of an economic incentive 
program (EIP) and that address certain requirements of the 
nonattainment NSR program, we also evaluated the rule revisions in 
accordance with the EPA's requirements and recommendations for EIPs and 
NSR programs.
    Additionally, SIP rules must require Reasonably Available Control 
Technology (RACT) for each major source of NOx in ozone 
nonattainment areas classified as moderate or above (see CAA sections 
182(b)(2) and 182(f)). The SCAQMD regulates an ozone nonattainment area 
classified as extreme for the 1997 8-hour ozone and 2008 8-hour ozone 
standards (40 CFR 81.305). Because the RECLAIM program applies to major 
sources of NOx emissions, these rules must implement RACT. 
SIP rules must also implement Reasonably Available Control Measures 
(RACM), including RACT, in moderate and above PM2.5 
nonattainment areas (see CAA sections 172(c)(1) and 189(a)(1)(C)) and 
must implement Best Available Control Measures (BACM), including Best 
Available Control Technology (BACT), in serious PM2.5 
nonattainment areas (see CAA section 189(b)(1)(B)). The SCAQMD 
regulates a PM2.5 nonattainment area classified as serious 
for the 2006 24-hour PM2.5 NAAQS and as moderate for the 
1997 and 2012 PM2.5 NAAQS (40 CFR 81.305). We generally 
evaluate submitted SIPs for RACM and BACM purposes as part of our 
action on an attainment plan as a whole.
    Guidance and policy documents that we use to evaluate 
enforceability, SIP revisions, rule stringency requirements, and EIP 
recommendations include the following:

    1. ``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).
    2. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, 
and Deviations,'' EPA, May 25, 1988 (the Bluebook, revised January 
11, 1990).
    3. ``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
    4. ``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.
    5. ``Improving Air Quality with Economic Incentive Programs,'' 
EPA-452/R-01-001, EPA OAR, January 2001.

B. Do the rules meet the evaluation criteria?

    We propose to find that the revised RECLAIM regulations satisfy the 
applicable CAA requirements for enforceability, NSR, SIP revisions, and 
economic incentive programs. In order to prevent NOx RECLAIM 
trading credits (RTCs) associated with facilities that have shut down 
from entering the RECLAIM market and potentially delaying the 
installation of pollution controls at other RECLAIM facilities, the 
revised regulations establish criteria for determining a facility 
shutdown and the methodology for calculating the amount of 
NOx RTCs by which that facility's future RTC holdings will 
be reduced. These revisions are projected to reduce NOx 
emissions from RECLAIM sources by 12 tons per day by 2023.
    In addition, the revised regulations allow certain electric 
generating facilities to use RTCs held in a ``Regional NSR Holding 
Account'' to satisfy the NSR offset requirements specified in Rule 
2005(f) but do not alter the existing requirement for all sources to 
hold RTCs in amounts equal to the amounts of required offsets.
    The revised rules are projected to achieve significant 
environmental benefits and would not interfere with applicable 
requirements concerning attainment and reasonable further progress or 
other CAA requirements. The TSD has more information on our evaluation.
    We are not reviewing the submitted rule revisions with respect to 
RACT requirements at this time because the District has not yet 
submitted an evaluation of the revised program in accordance with RACT 
requirements. Following the District's submission of a RACT evaluation 
for the revised RECLAIM rules, we intend to publish a separate proposed 
rule providing our evaluation of the program in accordance with RACT 
requirements and seeking public comment on that evaluation.

C. Public Comment and Proposed Action

    The EPA is proposing to fully approve the submitted rules under 
section 110(k)(3) of the Act based on our conclusion that they satisfy 
the applicable CAA requirements for enforceability, NSR, SIP revisions, 
and economic incentive programs. We will accept comments from the 
public on this proposal until July 6, 2017. If we take final action to 
approve the submitted rules, our final action will incorporate these 
rules into the federally enforceable SIP.

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 incorporate by 
reference the SCAQMD rules described in Table 1 of this preamble. The 
EPA has made, and will continue to make, these materials available 
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

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, the EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed action merely proposes to approve state law 
as meeting federal requirements and does

[[Page 25999]]

not impose additional requirements beyond those imposed by state law. 
For that reason, this proposed 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 Clean Air Act; and
     does not provide the EPA with the discretionary authority 
to address disproportionate human health or environmental effects with 
practical, appropriate, 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 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 (65 FR 67249, November 9, 
2000).

List of Subjects in 40 CFR Part 52

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

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

    Dated: May 17, 2017.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2017-11681 Filed 6-5-17; 8:45 am]
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