[Federal Register Volume 82, Number 156 (Tuesday, August 15, 2017)]
[Rules and Regulations]
[Pages 38605-38611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-16490]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2017-0078; FRL-9965-60-Region 4]


Air Plan Approval; Georgia: New Source Review and Permitting 
Updates

AGENCY: Environmental Protection Agency.

ACTION: Direct final rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is taking direct 
final action to approve changes to the Georgia State Implementation 
Plan (SIP) to revise new source review (NSR) and miscellaneous 
permitting regulations. EPA is approving portions of SIP revisions 
submitted by the State of Georgia, through the Georgia Department of 
Natural Resources' Environmental Protection Division (GA EPD), on 
December 15, 2011, July 25, 2014, and November 12, 2014. This action is 
being taken pursuant to the Clean Air Act (CAA or Act).

DATES: This direct final rule is effective October 16, 2017 without 
further notice, unless EPA receives adverse comment by September 14, 
2017. If EPA receives such comments, it will publish a timely 
withdrawal of the direct final rule in the Federal Register and inform 
the public that the rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2017-0078 at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. 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

[[Page 38606]]

whose disclosure is restricted by statute. Multimedia submissions 
(audio, video, etc.) must be accompanied by a written comment. The 
written comment is considered the official comment and should include 
discussion of all points you wish to make. EPA will generally not 
consider comments or comment contents located outside of the primary 
submission (i.e., on the web, cloud, or other file sharing system). For 
additional submission methods, 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: D. Brad Akers, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Mr. Akers can be reached via telephone at (404) 562-9089 or 
via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

I. What action is the Agency taking?

    On December 15, 2011, July 25, 2014, and November 12, 2014, GA EPD 
submitted SIP revisions to EPA for approval that involve changes to 
Georgia's regulations to make them consistent with federal requirements 
for NSR permitting, among other changes. In this action, EPA is 
approving the portions of these Georgia submissions that make changes 
to the following GA EPD regulations: Rule 391-3-1-.02(7)--``Prevention 
of Significant Deterioration of Air Quality (PSD),'' which applies to 
the construction and modification of any major stationary source in 
areas designated as attainment or unclassifiable as required by part C 
of title I of the CAA; and Rule 391-3-1-.03(8)--``Permit 
Requirements,'' which applies generally to the permitting program, 
including permitting requirements that apply to the construction and 
modification of any major stationary sources in nonattainment areas 
(NAAs) as required by part D of title I of the CAA, referred to as 
nonattainment new source review (NNSR). Georgia's PSD regulations at 
Rule 391-3-1-.02(7) were last updated in the SIP on April 9, 2013. See 
78 FR 21065. Georgia's NNSR regulations at Rule 391-3-1-.03(8) were 
last updated in the SIP on November 22, 2010 (75 FR 71020).
    Georgia's December 15, 2011 SIP revision modifies the definition of 
``Net Emissions Increase'' to remove an obsolete reference by deleting 
subparagraph (III) in Rule 391-3-1-.03(8)(g)(1)(iii) and by making 
minor grammatical edits to subparagraphs (I) and (II) to address the 
deletion of subparagraph (III). Georgia's July 25, 2014 SIP revision 
removes an obsolete provision at Rule 391-3-1-.03(8)(d), which applied 
to permits issued prior to July 1, 1979. The revision replaces the text 
in paragraph (8)(d) with the text ``[reserved]''.
    Georgia's November 12, 2014 SIP revision makes changes to the PSD 
regulations to reflect changes to the federal PSD regulations at 40 CFR 
52.21, including provisions promulgated in the following federal rules: 
``Implementation of the New Source Review (NSR) Program for Particulate 
Matter Less Than 2.5 Micrometers (PM2.5): \1\ Amendment to 
the Definition of `Regulated NSR Pollutant' Concerning Condensable 
Particulate Matter,'' Final Rule, 77 FR 65107 (October 25, 2012) 
(hereinafter referred to as the PM2.5 Condensables 
Correction Rule). Georgia's November 12, 2014 SIP revision also makes 
changes to Georgia's PSD program to incorporate plantwide applicability 
limits (PALs) for greenhouse gases (GHGs) as allowed in the federal 
rule entitled ``Prevention of Significant Deterioration and Title V 
Greenhouse Gas Tailoring Rule Step 3 and GHG Plantwide Applicability 
Limits.'' See 77 FR 41051 (July 12, 2012) (hereinafter referred to as 
the GHG Step 3 Rule). The PM2.5 Condensables Correction Rule 
and the GHG Step 3 Rule are discussed in Section 2, below.
---------------------------------------------------------------------------

    \1\ Airborne particulate matter (PM) with a nominal aerodynamic 
diameter of 2.5 micrometers or less (a micrometer is one-millionth 
of a meter, and 2.5 micrometers is less than one-seventh the average 
width of a human hair) are considered to be ``fine particles'' and 
are also known as PM2.5. Fine particles in the atmosphere 
are made up of a complex mixture of components including sulfate; 
nitrate; ammonium; elemental carbon; a great variety of organic 
compounds; and inorganic material (including metals, dust, sea salt, 
and other trace elements) generally referred to as ``crustal'' 
material, although it may contain material from other sources. The 
health effects associated with exposure to PM2.5 include 
potential aggravation of respiratory and cardiovascular disease 
(i.e., lung disease, decreased lung function, asthma attacks and 
certain cardiovascular issues). On July 18, 1997, EPA revised the 
NAAQS for PM to add new standards for fine particles, using 
PM2.5 as the indicator. Previously, EPA used 
PM10 (inhalable particles smaller than or equal to 10 
micrometers in diameter) as the indicator for the PM NAAQS. EPA 
established health-based (primary) annual and 24-hour standards for 
PM2.5, setting an annual standard at a level of 15.0 
micrograms per cubic meter ([micro]g/m\3\) and a 24-hour standard at 
a level of 65 [micro]g/m\3\(62 FR 38652). At the time the 1997 
primary standards were established, EPA also established welfare-
based (secondary) standards identical to the primary standards. The 
secondary standards are designed to protect against major 
environmental effects of PM2.5, such as visibility 
impairment, soiling, and materials damage. On October 17, 2006, EPA 
revised the primary and secondary 24-hour NAAQS for PM2.5 
to 35 [micro]g/m\3\ and retained the existing annual 
PM2.5 NAAQS of 15.0 [micro]g/m\3\(71 FR 61236). On 
January 15, 2013, EPA published a final rule revising the annual 
PM2.5 NAAQS to 12 [micro]g/m\3\(78 FR 3086).
---------------------------------------------------------------------------

    At this time, EPA is not acting on the changes included in the 
December 15, 2011, submittal made to Rule 391-3-1-.01--``Definitions,'' 
at paragraph (cccc); Rule 391-3-1-.03 at paragraph (11)--``Permit by 
Rule;'' and to the NNSR program at Rule 391-3-1-.03(8)(c), (e), and 
certain portions of (g), that adopted provisions related to 
PM2.5, and modified certain provisions related to ozone.\2\ 
The revision made to Rule 391-3-1-.02, ``Provisions,'' at paragraph 
(2)(uuu)--``SO2 Emissions from Electric Utility Steam 
Generating Units,'' was withdrawn from the December 15, 2011, submittal 
and EPA consideration on December 9, 2014. The changes made to Rule 
391-3-1-.02(4)--``Ambient Air Standards,'' included in the December 15, 
2011, submittal, were approved in a May 16, 2013, final rule (78 FR 
28744). EPA also approved changes made to Rule 391-3-1-.01--
``Definitions,'' at paragraph (nnnn), as included in the December 15, 
2011, submittal, in a July 31, 2015 direct final rule. See 80 FR 45609.
---------------------------------------------------------------------------

    \2\ There are currently no areas in Georgia designated as 
nonattainment for any PM2.5 or ozone NAAQS. Regarding 
Rule 391-3-1-.03(8)(g), EPA is not acting on the changes to 
(g)(1)(iii), (g)(2)(i), (g)(5)(i), and (g)(6)(i) that reference 
subparagraph 8(c)16.(ii). As discussed in Section III.A., below, EPA 
is only acting on the changes to Rule 391-3-1-.03(8)(g) in the 
December 15, 2011 submittal that remove an obsolete reference to 
clean units.
---------------------------------------------------------------------------

    EPA is not acting on the following changes included in the July 25, 
2014 submittal: Rule 391-3-1-.02(2)(a)--``General Provisions;'' Rule 
391-3-1-.02(2)(e)--``Particulate Emissions from Manufacturing 
Processes;'' Rule 391-3-1-.02(l)--``Conical Burners;'' Rule 391-3-
1-.02(o)--``Cupola Furnaces for Metallurgical Melting;'' Rule 391-3-
1-.02(p)--``Particulate Emissions from Kaolin and Fuller's Earth 
Processes;'' Rule 391-3-1-.02(q)--``Particulate Emissions from Cotton 
Gins;'' Rule 391-3-1-.02(gg)--``Kraft Pulp Mills;'' Rule 391-3-
1-.02(4)--``Ambient Air Standards;'' or Rule 391-3-1-.02(6)(a)--
``Specific Monitoring and Reporting Requirements for Particular 
Sources.'' EPA approved changes to Rule 391-3-1-.01--``Definitions,'' 
at paragraph (llll), as modified in the July 25, 2014 submittal, on 
October 5, 2016 (81 FR 69019). EPA also approved changes made to Rule 
391-3-1-.01--``Definitions,'' at (nnnn) in a January 5, 2017 direct 
final rule. See 82 FR 1206.

[[Page 38607]]

    EPA is not acting on the changes to Rule 391-3-1-.01--
``Definitions,'' at paragraphs (llll) and (nnnn), and Rule 391-3-
1-.02(4)--``Ambient Air Standards,'' as included in the November 12, 
2014 submittal, because EPA approved them on July 31, 2015. See 80 FR 
45609.
    EPA is not acting on a change included in the November 12, 2014 
submittal at Rule 391-3-1-.02(7)(a)(2)(iv). This provision would have 
incorporated by reference the federal definition of the term ``subject 
to regulation,'' but provided that incorporation of the federal 
regulation would be automatically rescinded if certain triggering 
events occurred. EPA previously disapproved the portion of a January 
13, 2011 SIP revision that sought to include Rule 391-3-
1-.02(7)(a)(2)(iv) in the SIP. See 81 FR 11438 (March 4, 2016). Because 
this provision is not part of Georgia's SIP, EPA is not acting on the 
State's proposed change to that provision.
    Finally, EPA is not acting on the changes included in the November 
12, 2014 submittal regarding a new definition of the term ``regulated 
NSR pollutant'' at Rule 391-3-1-.02(7)(a)(2)(ix) because Georgia 
withdrew these changes from EPA's consideration in a December 1, 2016 
letter.\3\
---------------------------------------------------------------------------

    \3\ In the December 1, 2016 letter, Georgia also withdrew 
changes regarding the term ``regulated NSR pollutant'' at Rule 391-
3-1-.02(7)(a)(2)(ix). The December 1, 2016 letter is included in the 
docket for this action.
---------------------------------------------------------------------------

II. Background

A. 2002 NSR Reform and Clean Units

    On December 31, 2002 (67 FR 80186), EPA published final rule 
changes to 40 CFR parts 51 and 52 regarding the CAA's PSD and NNSR 
programs. On November 7, 2003 (68 FR 63021), EPA published a notice of 
final action on reconsideration of the December 31, 2002, final rule 
changes. The December 31, 2002, and the November 7, 2003, final actions 
are collectively referred to as the ``2002 NSR Reform Rules.'' The 2002 
NSR Reform Rules made changes to two areas of the NSR programs that are 
relevant to this action. First, the rule allowed major stationary 
sources to comply with plant-wide applicability limits (PALs) to avoid 
having a significant emissions increase that triggers the requirements 
of the major NSR program. A PAL establishes a site-specific plantwide--
rather than unit-specific--emission level for a pollutant, which allows 
the source to make changes to individual units at the facility without 
triggering the requirements of the PSD program, provided that facility-
wide emissions do not exceed the PAL. Second, the rule provided a new 
applicability provision for emissions units that are designated ``clean 
units.'' On November 7, 2003 (68 FR 63021), EPA published a notice of 
final action on its reconsideration of the 2002 NSR Reform Rules, which 
clarified an issue regarding PALs. For additional information on the 
2002 NSR Reform Rules, see 67 FR 80186 (December 31, 2002) and https://www.epa.gov/nsr/nsr-regulatory-actions#nsrreform.
    After the 2002 NSR Reform Rules were finalized and effective (March 
3, 2003), industry, state, and environmental petitioners challenged 
numerous aspects of the 2002 NSR Reform Rules. See 45 FR 52676 (August 
7, 1980). On June 24, 2005, the U.S. Court of Appeals for the District 
of Columbia Circuit (D.C. Circuit) issued a decision vacating the 
portion of the rule pertaining to clean units. New York v. U.S. EPA, 
413 F.3d 3 (D.C. Cir. 2005). On June 13, 2007 (72 FR 32526), EPA took 
final action to revise the 2002 NSR Reform Rules to remove from federal 
law all provisions pertaining to clean units.

B. 2008 NSR PM2.5 Rule

    On May 16, 2008, EPA finalized a rule titled ``Implementation of 
the New Source Review (NSR) Program for Particulate Matter Less Than 
2.5 Micrometers (PM2.5),'' Final Rule, 73 FR 28321 (May 16, 
2008) (hereinafter referred to as the 2008 NSR PM2.5 Rule). 
The 2008 NSR PM2.5 Rule, which revised the federal NSR 
program requirements to establish the framework for implementing 
preconstruction permit review for the PM2.5 NAAQS in both 
attainment and NAAs. Among other things, the rule revised the 
definition of ``regulated NSR pollutant'' for PSD to add a paragraph 
providing that ``particulate matter (PM) emissions, PM2.5 
emissions and PM10 emissions shall include gaseous emissions 
from a source or activity which condense to form particulate matter at 
ambient temperatures'' and that on or after January 1, 2011, ``such 
condensable particulate matter shall be accounted for in applicability 
determinations and in establishing emissions limitations for PM, 
PM2.5 and PM10 in permits.'' See 73 FR 28321 at 
28348. A similar paragraph added to the NNSR rule does not include 
``particulate matter (PM) emissions.'' See 40 CFR 
51.165(a)(1)(xxxvii)(D).
    On October 25, 2012, EPA took final action to amend the definition 
of ``regulated NSR pollutant'' promulgated in the 2008 NSR 
PM2.5 Rule regarding the PM condensable provision at 40 CFR 
51.166(b)(49)(vi), 52.21(b)(50)(i) and Appendix S to 40 CFR 51. See 77 
FR 65107. The PM2.5 Condensables Correction Rule removed the 
inadvertent requirement in the 2008 NSR PM2.5 Rule that the 
measurement of condensable particulate matter be included as part of 
the measurement and regulation of ``particulate matter emissions'' 
under the PSD program. The term ``particulate matter emissions'' 
includes filterable particles that are larger than PM2.5 or 
PM10 and is an indicator measured under various New Source 
Performance Standards (NSPS). See 40 CFR part 60.\4\
---------------------------------------------------------------------------

    \4\ In addition to the NSPS, states regulated ``particulate 
matter emissions'' for many years in their SIPs for PM, and the same 
indicator has been used as a surrogate for determining compliance 
with certain standards contained in 40 CFR part 63, regarding 
National Emission Standards for Hazardous Air Pollutants.
---------------------------------------------------------------------------

    The PSD requirements of the 2008 NSR PM2.5 Rule were 
approved into the Georgia SIP on September 8, 2011. See 76 FR 55572. 
The November 12, 2014 submittal makes the correction to the 
condensables provision for Georgia's PSD program. See Section III, 
below, for EPA's analysis of Georgia's submittals.

B. Greenhouse Gases and Plantwide Applicability Limits

    On January 2, 2011, GHG emissions were, for the first time, covered 
by the PSD and title V operating permit programs.\5\ To establish a 
process for phasing in the permitting requirements for stationary 
sources of GHGs under the CAA PSD and title V programs, on June 3, 
2010, the EPA published a final rule entitled ``Prevention of 
Significant Deterioration and Title V Greenhouse Gas Tailoring Rule'' 
(hereinafter referred to as the GHG Tailoring Rule). See 75 FR 31514. 
In Step 1 of the GHG Tailoring Rule, which began on January 2, 2011, 
the EPA limited application of PSD and title V requirements to sources 
of GHG emissions only if they were subject to PSD or title V ``anyway'' 
due to their emissions of pollutants other than GHGs. These sources are 
referred to as ``anyway sources.''
---------------------------------------------------------------------------

    \5\ See the rule entitled ``Reconsideration of Interpretation of 
Regulations that Determine Pollutants Covered by Clean Air Act 
Permitting Programs,'' Final Rule, 75 FR 17004 (April 2, 2010).
---------------------------------------------------------------------------

    In Step 2 of the GHG Tailoring Rule, which applied as of July 1, 
2011, the PSD and title V permitting requirements applied to some 
sources that were classified as major sources based solely on their GHG 
emissions or potential to emit GHGs. Step 2 also applied PSD permitting 
requirements to modifications of otherwise major sources that would 
increase only GHG

[[Page 38608]]

emissions above the level in the EPA regulations. EPA generally 
described the sources covered by PSD during Step 2 of the GHG Tailoring 
Rule as ``Step 2 sources'' or ``GHG-only sources.''
    Subsequently, EPA published the GHG Step 3 Rule on July 12, 2012. 
See 77 FR 41051. In this rule, EPA decided against further phase-in of 
the PSD and title V requirements for sources emitting lower levels of 
GHG emissions. Thus, the thresholds for determining PSD applicability 
based on emissions of GHGs remained the same as established in Step 2 
of the Tailoring Rule.
    The GHG PALs portion of the July 12, 2012 final rule revised EPA 
regulations under 40 CFR part 52 for establishing PALs for GHG 
emissions. A PAL establishes a site-specific plantwide emission level 
for a pollutant that allows the source to make changes at the facility 
without triggering the requirements of the PSD program, provided that 
emissions do not exceed the PAL level. Under EPA's interpretation of 
the federal PAL provisions, such PALs are already available under PSD 
for non-GHG pollutants and for GHGs on a mass basis. EPA revised the 
PAL regulations to allow for GHG PALs to be established on a carbon 
dioxide equivalent (CO2e) \6\ basis as well. See 77 FR 41051 
(July 12, 2012). EPA finalized these changes in an effort to streamline 
federal and SIP PSD permitting programs by allowing sources and 
permitting authorities to address GHGs using PALs in a manner similar 
to the use of PALs for non-GHG pollutants.
---------------------------------------------------------------------------

    \6\ CO2 equivalent (CO2e) emissions refers 
to emissions of six recognized GHGs other than CO2 which 
are scaled to equivalent CO2 emissions by relative global 
warming potential values, then summed with CO2 to 
determine a total equivalent emissions value. See 40 CFR 
51.166(48)(ii) and 52.21(49)(ii).
---------------------------------------------------------------------------

    On June 23, 2014, the U.S. Supreme Court addressed the application 
of stationary source permitting requirements to GHG emissions in 
Utility Air Regulatory Group (UARG) v. EPA, 134 S. Ct. 2427 (2014). The 
Supreme Court upheld EPA's regulation of Step 1--or ``anyway'' 
sources--but held that EPA may not treat GHGs as air pollutants for the 
purposes of determining whether a source is a major source (or a 
modification thereof) and thus require the source to obtain a PSD or 
title V permit. Therefore, the Court invalidated PSD and title V 
permitting requirements for Step 2 sources.
    In accordance with the Supreme Court decision, on April 10, 2015, 
the D.C. Circuit issued an Amended Judgment vacating the regulations 
that implemented Step 2 of the GHG Tailoring Rule, but not the 
regulations that implement Step 1 of the GHG Tailoring Rule. Coalition 
for Responsible Regulation, Inc. v. EPA, 606 Fed. Appx. 6, 7 (D.C. Cir. 
2015). With respect to Step 2 sources, the D.C. Circuit's Judgment 
vacated the EPA regulations under review (including 40 CFR 
51.166(b)(48)(v) and 40 CFR 52.21(b)(49)(v)) ``to the extent they 
require a stationary source to obtain a PSD permit if greenhouse gases 
are the only pollutant (i) that the source emits or has the potential 
to emit above the applicable major source thresholds, or (ii) for which 
there is a significant emissions increase from a modification.'' Id. at 
7-8.
    EPA promulgated a good cause final rule on August 19, 2015, 
entitled ``Prevention of Significant Deterioration and Title V 
Permitting for Greenhouse Gases: Removal of Certain Vacated Elements.'' 
See 80 FR 50199 (August 19, 2015) (hereinafter referred to as the Good 
Cause GHG Rule). The rule removed from the federal regulations the 
portions of the PSD permitting provisions for Step 2 sources that were 
vacated by the D.C. Circuit (i.e., 40 CFR 51.166(b)(48)(v) and 
52.21(b)(49)(v)). EPA therefore no longer has the authority to conduct 
PSD permitting for Step 2 sources, nor can we approve provisions 
submitted by a state for inclusion in its SIP providing this authority. 
In addition, on October 3, 2016, EPA proposed to revise provisions in 
the PSD permitting regulations applicable to GHGs to fully conform with 
UARG and the Amended Judgment, but those revisions have not been 
finalized. See 81 FR 68110.
    Georgia's November 12, 2014 SIP revision adopts the GHG Step 3 
Rule. EPA's analysis of the submittal is included in Section III of 
this rulemaking.

III. Analysis of the State's Submittals

A. Georgia's December 15, 2011 Submittal

    Georgia currently has a SIP-approved NNSR program at Rules 391-3-
1-.03(8)(c) and (g). The change to Rule 391-3-1-.03(8)(g) in the 
December 15, 2011 submittal removes an obsolete reference to clean 
units by deleting subparagraph (III) in Rule 391-3-1-.03(8)(g)(1)(iii) 
and by making minor grammatical edits to subparagraphs (I) and (II) to 
address the deletion of subparagraph (III). Georgia never adopted the 
Clean Unit provisions, and the language in subparagraph (III) expressly 
excludes incorporation of 40 CFR 51.165(a)(1)(vi)(C)(3) and (E)(5)--
related to increases and decreases at clean units--into the State's 
definition of ``Net Emissions Increase.'' Subparagraph (III) is now 
obsolete, because as discussed in Section II.A., above, clean unit 
provisions were removed from the federal NSR rules on June 13, 2007 (72 
FR 32526). Therefore, EPA is approving this change to Georgia's SIP-
approved NNSR rules.

B. Georgia's July 25, 2014 Submittal

    Georgia's July 25, 2014 submittal makes an administrative edit to 
Georgia Rule 391-3-1-.03(8) for generally applicable permitting 
requirements. GA EPD deletes the text from paragraph (d) that required 
that Section 129A of the CAA, governing new source performance 
standards for solid waste combustion, must be met before permitting 
sources to be constructed or modified prior to July 1, 1979. The date 
for this requirement has passed, so the provision is obsolete. 
Georgia's non-SIP rules have other, more current provisions pursuant to 
CAA section 129. EPA has concluded that this revision will not 
interfere with any applicable requirement concerning attainment and 
reasonable further progress (as defined in section 171), or any other 
applicable requirement of the Act, and is approving this administrative 
change to the SIP.

C. Georgia's November 12, 2014 Submittal

    Georgia currently has a SIP-approved PSD program at Rule 391-3-
1-.02(7), including the regulation of GHGs under Step 1 and Step 2 
pursuant to the GHG Tailoring Rule. The November 12, 2014 submittal 
revises the PSD regulations by changing the incorporation by reference 
date of 40 CFR 52.21 at Rule 391-3-1-.02(7)(a)(1) from July 20, 2011, 
to December 9, 2013.\7\ The effect of changing this incorporation by 
reference date is to adopt two significant changes

[[Page 38609]]

to the PSD rules: (1) The adoption of GHG PAL provisions pursuant to 
the GHG Step 3 Rule; and (2) the incorporation of the correction to the 
PM2.5 condensables provision as promulgated in the 
PM2.5 Condensables Correction Rule.
---------------------------------------------------------------------------

    \7\ EPA has not acted on, and is not currently acting on, the 
portion of Georgia's September 15, 2008 SIP revision that seeks to 
incorporate into the SIP, through a revision to Georgia Rule 391-3-
1-.02(7)(a)(2)(iii) (state effective on September 11, 2008), the 
provisions amended in the Ethanol Rule (72 FR 24060) to exclude 
facilities that produce ethanol through a natural fermentation 
process from the definition of ``chemical process plants'' in the 
major NSR source permitting program found at 40 CFR 
52.21(b)(1)(i)(a) and (b)(1)(iii)(t). Therefore, today's action does 
not IBR those provisions into the SIP. Additionally, today's action 
does not incorporate into the SIP the provisions at 40 CFR 
52.21(b)(2)(v) and (b)(3)(iii)(c) that were stayed indefinitely by 
the Fugitive Emissions Interim Rule, 76 FR 17548 (March 30, 2011). 
As discussed in an October 26, 2016 letter from GA EPD, these stayed 
provisions were not incorporated into Georgia's SIP through EPA's 
September 9, 2011 approval of the IBR update to Georgia Rule 391-3-
1-.02(7) in Georgia's January 13, 2011 SIP revision because these 
provisions were initially stayed on September 30, 2009 (74 FR 
50115). GA EPD's October 26, 2016 letter is located in the docket 
for this action.
---------------------------------------------------------------------------

    Georgia's November 12, 2014 submittal incorporates these two 
federal PSD provisions as of December 9, 2013, which is prior to the 
UARG decision, the D.C. Circuit's Amended Judgment in Coalition for 
Responsible Regulation, and EPA's August 19, 2015 Good Cause GHG Rule. 
Therefore, Georgia's adoption by reference of 40 CFR 52.21 as of 
December 9, 2013, did not include the August 19, 2015 revisions to the 
Federal PSD program removing the PSD provisions vacated by the Amended 
Judgment. Prior to this action, the Georgia SIP contains the vacated 
GHG provisions (through the incorporation by reference of a previous 
version of 40 CFR 52.21) and so EPA's approval of the CFR incorporation 
by reference update to December 9, 2013, does not change the Georgia 
SIP with respect to the vacated provisions. However, the now-vacated 
portions of 40 CFR 52.21 incorporated into the Georgia SIP-approved PSD 
program are no longer enforceable. EPA believes that this portion of 
the Georgia SIP should be revised in light of the D.C. Circuit's 
Amended Judgment, but EPA also notes that these provisions may not be 
applied even prior to their removal from the Georgia SIP because the 
court decisions described above have determined these parts of EPA's 
regulations are unlawful. EPA therefore proposes to approve the update 
to the incorporation by reference of PSD regulations with the 
understanding that the GHG provisions that have been vacated by the 
court decisions may not be applied after those decisions.
    The November 12, 2014 SIP revision seeks to add to the Georgia SIP 
elements of the EPA's July 12, 2012 rule implementing Step 3 of the 
phase-in of PSD permitting requirements for GHGs described in the GHG 
Step 3 Rule. Specifically, the incorporation of the GHG Step 3 Rule 
provisions will allow GHG-emitting sources to obtain PALs for their GHG 
emissions on a CO2e basis. As explained in Section II.B 
above, a PAL establishes a site-specific plantwide emission level for a 
pollutant, which allows the source to make changes to individual units 
at the facility without triggering the requirements of the PSD program, 
provided that facility-wide emissions do not exceed the PAL.
    The federal GHG PAL regulations include provisions that apply 
solely to GHG-only, or Step 2, sources. Some of these provisions may no 
longer be applicable in light of the Supreme Court's decision in UARG 
and the D.C. Circuit's Amended Judgment. Since the Supreme Court has 
determined that sources and modifications may not be defined as 
``major'' solely on the basis of GHGs emitted or increased, PALs for 
GHGs may no longer have value in some situations where a source might 
have triggered PSD based on GHG emissions alone. EPA has proposed 
action in an October 3, 2016 proposed rule to clarify the GHG PAL 
rules. See 81 FR 68110. However, PALs for GHGs may still have a role to 
play in determining whether a source that is already subject to PSD for 
a pollutant other than GHGs should also be subject to PSD for GHGs.
    Moreover, the existing GHG PALs regulations do not add new 
requirements for sources or modifications that only emit or increase 
greenhouse gases above the major source threshold or the 75,000 ton per 
year GHG level in 40 CFR 52.21(b)(49)(iv). Rather, the PALs provisions 
provide increased flexibility to sources that wish to address their GHG 
emissions in a PAL. Since this flexibility may still be valuable to 
sources in at least one context described above, the Agency believes 
that it is appropriate to approve these provisions into the Georgia SIP 
at this time. EPA has concluded that approving this change into the SIP 
will not interfere with any applicable requirement concerning 
attainment and reasonable further progress (as defined in section 171), 
or any other applicable requirement of the CAA. EPA discussed the 
effects of PALs in the Supplemental Environmental Analysis of the 
Impact of the 2002 Final NSR Improvement Rules (November 21, 2002) 
(Supplemental Analysis). The Supplemental Analysis explained, ``[t]he 
EPA expects that the adoption of PAL provisions will result in a net 
environmental benefit. Our experience to date is that the emissions 
caps found in PAL-type permits result in real emissions reductions, as 
well as other benefits.'' Supplemental Analysis at 6; see also 76 FR 
49313, 49315 (August 10, 2011). EPA is therefore approving the PALs 
provisions into the Georgia SIP, as incorporated by reference.
    By changing the incorporation by reference date for Rule 391-3-
1-.02(7) in the November 12, 2014 SIP revision, Georgia also adopts 
changes made by EPA in the PM2.5 Condensables Correction 
Rule. See 77 FR 65107 (October 25, 2012). As explained in Section II.A, 
the federal rule corrected an inadvertent error in the definition of 
``regulated NSR pollutant'' at 40 CFR 52.21(b)(50).\8\ EPA has 
concluded that this change will not interfere with any applicable 
requirement concerning attainment and reasonable further progress (as 
defined in section 171), or any other applicable requirement of the 
CAA, and is approving this revision to the Georgia SIP.
---------------------------------------------------------------------------

    \8\ As discussed in section I of this action, Georgia's December 
15, 2011 and November 12, 2014 submittals included further revisions 
to Rule 391-3-1.02(7)(a)(2)(ix), but those revisions were withdrawn 
in a December 1, 2016 letter.
---------------------------------------------------------------------------

IV. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, EPA is finalizing the incorporation by reference of Georgia Rule 
391-3-1-.02(7)--``Prevention of Significant Deterioration'' at 
subparagraph (a)(1), effective October 14, 2014,\9\ which revises PSD 
rules, and Rule 391-3-1-.03(8)--``Permit Requirements'' at paragraph 
(g), effective September 13, 2011,\10\ which revises NNSR rules, and at 
paragraph (d), effective August 1, 2013, which revises generally 
applicable permitting requirements. Therefore, these materials have 
been approved by EPA for inclusion in the SIP, have been incorporated 
by reference by EPA into that plan, are fully federally enforceable 
under sections 110 and 113 of the CAA as of the effective date of the 
final rulemaking of EPA's approval, and will be incorporated by 
reference by the Director of the Federal Register in the next update to 
the SIP compilation.\11\ EPA has made, and will continue to make, these 
materials generally available through www.regulations.gov and/or at the 
EPA Region 4 Office (please contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section of this preamble for more 
information).
---------------------------------------------------------------------------

    \9\ See footnote 8, above, for additional detail.
    \10\ As discussed in section I of this action, EPA is not 
incorporating by reference the changes to Rule 391-3-
1-.03(8)(g)(1)(iii), (g)(2)(i), (g)(5)(i), and (g)(6)(i) that 
reference subparagraph 8(c)16.(ii).
    \11\ 62 FR 27968 (May 22, 1997).
---------------------------------------------------------------------------

V. Final Action

    EPA is approving the aforementioned changes to the SIP because they 
are consistent with the CFR and the CAA. EPA is publishing this rule 
without prior proposal because the Agency views this as a 
noncontroversial submittal and anticipates no adverse comments. 
However, in the proposed rules section of this Federal Register 
publication, EPA is publishing a separate document that will serve as 
the proposal to approve the SIP revision

[[Page 38610]]

should adverse comments be filed. This rule will be effective October 
16, 2017 without further notice unless the Agency receives adverse 
comments by September 14, 2017.
    If EPA receives such comments, then EPA will publish a document 
withdrawing the final rule and informing the public that the rule will 
not take effect. All adverse comments received will then be addressed 
in a subsequent final rule based on the proposed rule. EPA will not 
institute a second comment period. Parties interested in commenting 
should do so at this time. If no such comments are received, the public 
is advised that this rule will be effective on October 16, 2017 and no 
further action will be taken on the proposed rule. Please note that if 
we receive adverse comment on an amendment, paragraph, or section of 
this rule and if that provision may be severed from the remainder of 
the rule, we may adopt as final those provisions of the rule that are 
not the subject of an adverse comment.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where EPA or an Indian tribe has demonstrated that a 
tribe has jurisdiction. In those areas of Indian country, the rule does 
not have tribal implications as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by October 16, 2017. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action for the purposes of judicial review nor 
does it extend the time within which a petition for judicial review may 
be filed, and shall not postpone the effectiveness of such rule or 
action. Parties with objections to this direct final rule are 
encouraged to file a comment in response to the parallel notice of 
proposed rulemaking for this action published in the proposed rules 
section of today's Federal Register, rather than file an immediate 
petition for judicial review of this direct final rule, so that EPA can 
withdraw this direct final rule and address the comment in the proposed 
rulemaking. This action may not be challenged later in proceedings to 
enforce its requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Incorporation by reference, Lead, Nitrogen dioxide, Ozone, Particulate 
matter, Sulfur oxides, Volatile organic compounds.

    Dated: July 19, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart L--Georgia

0
2. Section 52.570(c) is amended by revising the entries for ``391-3-
1-.02(7)'' and ``391-3-1-.03'' to read as follows:


Sec.  52.570  Identification of plan.

* * * * *
    (c) * * *

[[Page 38611]]



                                        EPA Approved Georgia Regulations
----------------------------------------------------------------------------------------------------------------
                                                          State
         State citation             Title/subject    effective date   EPA approval date        Explanation
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
391-3-1-.02(7).................  Prevention of           10/14/2014  8/15/2017, [Insert  EPA is not
                                  Significant                         citation of         incorporating the
                                  Deterioration of                    publication].       revision to Georgia
                                  Air Quality (PSD).                                      Rule 391-3-1-
                                                                                          .02(7)(a)(2)(iv)
                                                                                          included in Georgia's
                                                                                          November 12, 2014 SIP
                                                                                          submittal because that
                                                                                          provision is not in
                                                                                          the SIP. As discussed
                                                                                          in EPA's action
                                                                                          published March 4,
                                                                                          2016 to update to
                                                                                          Georgia's SIP.
                                                                                         The version of Georgia
                                                                                          Rule 391-3-1-.02(7) in
                                                                                          the SIP does not
                                                                                          incorporate by
                                                                                          reference: (1) The
                                                                                          provisions amended May
                                                                                          1, 2007 to exclude
                                                                                          facilities that
                                                                                          produce ethanol
                                                                                          through a natural
                                                                                          fermentation process
                                                                                          from the definition of
                                                                                          ``chemical process
                                                                                          plants'' in the major
                                                                                          NSR source permitting
                                                                                          program found at 40
                                                                                          CFR 52.21(b)(1)(i)(a)
                                                                                          and (b)(1)(iii)(t), or
                                                                                          (2) the provisions at
                                                                                          40 CFR 52.21(b)(2)(v)
                                                                                          and (b)(3)(iii)(c)
                                                                                          that were stayed
                                                                                          indefinitely (March
                                                                                          30, 2011).
 
                                                  * * * * * * *
391-3-1-.03....................  Permits...........        8/1/2013  8/15/2017, [Insert  Changes specifically to
                                                                      citation of         (8)--Permit
                                                                      publication].       Requirements at (d)
                                                                                          (state effective
                                                                                          August 1, 2013) and
                                                                                          (g) (state effective
                                                                                          September 13, 2011).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2017-16490 Filed 8-14-17; 8:45 am]
 BILLING CODE 6560-50-P