[Federal Register Volume 82, Number 217 (Monday, November 13, 2017)]
[Proposed Rules]
[Pages 52259-52262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-24536]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2016-0309; FRL-9968-49-Region 3]


Approval and Promulgation of Air Quality Implementation Plans; 
Maryland; Reasonably Available Control Technology for Cement Kilns, 
Revisions to Portland Cement Manufacturing Plant and Natural Gas 
Compression Station Regulations, and Removal of Nitrogen Oxides 
Reduction and Trading Program Replaced by Other Programs and 
Regulations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a state implementation plan (SIP) revision submitted by the 
State of Maryland. This revision pertains to reasonably available 
control technology (RACT) for cement kilns, revisions to and 
recodification of certain provisions for Portland cement manufacturing 
plants (cement plants) and internal combustion (IC) engines at natural 
gas compression stations, and removal of the obsolete Nitrogen Oxides 
(NOX) Reduction and Trading Program that has been replaced 
by other trading programs or addressed in other regulations. This 
action is being taken under the Clean Air Act (CAA).

DATES: Written comments must be received on or before December 13, 
2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R03-
OAR-2016-0309 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, 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. 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: Marilyn Powers, (215) 814-2308, or by 
email at [email protected].

SUPPLEMENTARY INFORMATION: On November 24, 2015, the State of Maryland, 
through the Maryland Department of the Environment (MDE), submitted a 
SIP revision for approval into the Maryland SIP. The submission is 
comprised of three State actions pertaining to amendments to COMAR 
26.11.01.10, COMAR 26.11.09.08, COMAR 26.11.29, and COMAR 26.11.30. The 
amendments address the requirement for NOX RACT for cement 
kilns for the 2008 ozone national ambient air quality standard (NAAQS), 
the removal of COMAR provisions related to the obsolete NOX 
Budget Trading Program under the NOX SIP Call \1\ (that has 
been replaced by other trading programs), the consolidation of all 
existing and new requirements for cement kilns into one COMAR 
regulation, the consolidation of all existing and new requirements for 
IC engines into one COMAR regulation, the addition of new particulate 
matter (PM) monitoring requirements, and the addition of an alternate 
monitoring option for visible emissions at cement kilns. On February 
17, 2017, MDE provided a letter to EPA clarifying the NOX 
RACT limits and withdrawing from EPA's consideration a provision of its 
regulation for natural gas compression stations.
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    \1\ See Finding of Significant Contribution and Rulemaking for 
Certain States in the Ozone Transport Assessment Group Region for 
Purposes of Reducing Regional Transport of Ozone, 63 FR 57371 
(October 27, 1998).
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I. Background

A. NOX RACT for Cement Kilns

    On March 12, 2008, EPA strengthened the NAAQS for ground level 
ozone, setting both the primary and secondary standards to a level of 
0.075 parts per million (ppm), or 75 parts per billion (ppb), averaged 
over an 8-hour period (hereafter referred to as the 2008 ozone NAAQS). 
On May 21, 2012 (77 FR 30088), EPA designated 45 areas as nonattainment 
under the 2008 ozone NAAQS, including three areas or portions of areas 
in Maryland. Under section 182 of the CAA, states must review and 
revise the RACT requirements in their SIP to ensure that these 
requirements would still be considered RACT under the new, more 
stringent NAAQS. Major stationary sources of ozone precursor emissions 
located in ozone nonattainment areas classified as moderate and above 
(and sources located in the Ozone Transport Region (OTR), of which the 
entire state of Maryland is a part) are subject to RACT requirements. 
See sections 182(b)(2) and 184(b)(2) of the CAA. Section 182(f) of the 
CAA specifically requires RACT for major stationary sources of 
NOX.\2\ The cement kilns in Maryland are major stationary 
sources of NOX and are therefore required to be evaluated 
for NOX RACT under the 2008 ozone NAAQS.
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    \2\ A major stationary source of NOX in a marginal or 
moderate ozone nonattainment area, or in an ozone transport region, 
is a source that emits or has the potential to emit 100 tons of 
NOX.
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B. Repeal of NOX Budget Trading Program Requirements Under the NOX SIP 
Call

    In October 1998, EPA finalized the ``Finding of Significant 
Contribution and Rulemaking for Certain States in the Ozone Transport 
Assessment Group Region for Purposes of Reducing Regional Transport of 
Ozone''--commonly called the NOx SIP Call. The NOx SIP Call was 
designed to mitigate significant transport of NOX, one of 
the precursors of ozone. The NOX Budget Trading Program was 
established under the NOX SIP Call to allow electric 
generating units (EGUs) greater than 25 megawatts and industrial non-
electric generating units (or non-EGUs) with a rated heat input greater 
than 250 million British thermal units per hour (MMBtu/hr) (referred to 
as large non-EGUs) to participate in a regional NOX cap and 
trade program.\3\ The NOX SIP call also

[[Page 52260]]

established NOX reduction requirements for other non-EGUs 
that were not a part of the NOX Budget Trading Program, 
including cement kilns and stationary IC engines.
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    \3\ In the cap and trade program established under the 
NOX SIP Call, a regional ozone season NOX cap, 
or budget, was established, which was allocated as NOX 
allowances to subject sources in the affected states. Each allowance 
equaled one ton of NOx, and allowances could be traded 
among sources. To comply, sources were required to hold enough 
allowances to cover their NOX emissions during the ozone 
season.
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    EPA discontinued administration of the NOX Budget 
Trading Program in 2009 upon the start of the Clean Air Interstate Rule 
(CAIR) trading programs.\4\ The NOX SIP Call requirements 
continued to apply, and EGUs that were previously trading under the 
NOX Budget Trading Program continued to meet NOX 
SIP Call requirements under the more stringent requirements of the CAIR 
ozone season trading program. Certain large non-EGUs were not addressed 
in CAIR. Therefore, states needed to assess their state requirements 
and take regulatory action as necessary to ensure that all their non-
EGU obligations continued to be met.
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    \4\ CAIR was subsequently vacated and remanded. See North 
Carolina v. EPA, 531 F.3d 896 (D.C. Cir. 2008), modified by 550 F.3d 
1176 (remanding CAIR). CAIR was replaced with the Cross-State Air 
Pollution Rule (CSAPR) (76 FR 48208, August 8, 2011), which, after 
legal challenges, was implemented starting in January 2015.
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    Maryland regulations, COMAR 26.11.29--NOX Reduction Requirements 
and Trading Program and COMAR 26.11.30--Policies and Procedures 
Relating to Maryland's NOX Reduction and Trading Program, were 
previously approved into the Maryland SIP to implement the 
NOX Budget Trading Program and allowed EGUs and large non-
EGUs in the state to participate in the regional NOX cap and 
trade program established under EPA's NOX SIP Call. COMAR 
26.11.29 also included NOX reductions, monitoring, and 
recordkeeping requirements for cement kilns and IC engines. After EPA 
discontinued the NOX Budget Trading Program under the 
NOX SIP Call, Maryland's EGU obligations under the 
NOX SIP Call continued to be addressed in Maryland 
regulation COMAR 26.11.28--Clean Air Interstate Rule. However, in order 
to fill the gap for large non-EGUs created by the discontinuance of the 
NOX Budget Trading Program upon implementation of CAIR and 
then CSAPR, Maryland needed to take regulatory action to address 
NOX reduction requirements for its large non-EGUs. Maryland 
originally addressed these requirements for large non-EGUs as part of 
its regulation for kraft pulp mills, and submitted revisions to that 
regulation as a separate SIP revision, for which EPA took separate 
rulemaking action.\5\ However, Maryland has identified additional large 
non-EGUs that are subject to the NOX SIP Call at two 
sources, and is now required to take regulatory action to re-allocate 
the budget to cover both existing and new units. MDE is in the process 
of developing a new regulation to re-allocate the budget to include all 
units that are subject to the NOX SIP Call.
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    \5\ The NOX SIP Call requirements applicable to large 
non-EGUs that were previously in COMAR 26.11.29 are now addressed in 
Maryland regulation COMAR 26.11.14--Control of Emissions from Kraft 
Pulp Mills, which MDE submitted to EPA as a separate SIP revision 
submittal. See rulemaking docket EPA-R03-OAR-2016-0054 for Maryland 
submittal #14-04 dated October 8, 2014. EPA approved the submittal 
on July 17, 2017 (82 FR 32641).
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    The action in this notice pertains only to the cement kiln and IC 
engine provisions, which were previously approved in COMAR 26.11.29 to 
address NOX SIP Call requirements.

II. Summary of SIP Revision and EPA Analysis

    Maryland's submittal explained that NOX RACT for cement 
kilns, which are major stationary sources of NOX subject to 
RACT requirements, was established consistent with the Ozone Transport 
Commission (OTC) recommended RACT requirements for the 2008 ozone 
NAAQS. The 2007 OTC Technical Support Document on Identification and 
Evaluation of Candidate Control Measures \6\ (OTC TSD) recommended 
NOX emission rates for cement kilns based on applying a 60 
percent reduction to uncontrolled emissions.
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    \6\ The NOX limits adopted in Maryland's July 10, 
2015 rulemaking were based on the 2007 ``Ozone Transport Commission 
(OTC) Technical Support Document on Identification and Evaluation of 
Candidate Control Measures,'' which was included in the State's 
submission and is available in the docket for this proposed 
rulemaking action and online at www.regulations.gov.
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    There are two cement kilns in Maryland--a long, dry kiln in 
Washington County (Lehigh Cement Company) and a pre-calciner kiln in 
Carroll County (Holcim Cement Plant). Revised COMAR 26.11.30 
establishes a limit of 3.4 pounds (lbs) of NOX per ton of 
clinker (lbs NOX/ton of clinker) for long, dry kilns, and 
2.4 lbs NOX/ton of clinker for pre-calciner kilns. It 
defines a pre-calciner kiln as a ``cement kiln that contains a pre-
calciner at the bottom of the pre-heater tower before the materials 
enter the kiln,'' and is commonly referred to as a pre-heater/pre-
calciner kiln.
    In its November 24, 2015 submittal, MDE stated that the 
NOX emission rates for cement kilns are consistent with the 
OTC recommendations for cement kilns, and on February 17, 2017, MDE 
provided additional clarification on the justification for the 
NOX RACT limits for the cement kilns. As part of its 
submittal, MDE also provided an estimate of costs to comply with the 
revised NOX rates for cement kilns, including the costs to 
install selective non-catalytic reduction (SNCR) controls to meet the 
more stringent NOX rate limits required by its May 21, 2010 
regulatory action and the additional costs to increase the amount of 
reagent used in the SNCR to meet the requirements in its July 10, 2015 
action further lowering the NOX emission rate.
    EPA agrees with Maryland's determination of NOX RACT for 
cement kilns for the 2008 ozone NAAQS, based on our analysis of the 
cost effectiveness associated with installation of SNCR, the cost 
effectiveness for additional operating costs for the increase in 
ammonia use, as well as the technological considerations involved with 
further increasing the amount of ammonia used. A more detailed 
discussion of the NOX RACT limits for the cement kilns and 
EPA's analysis is provided in the technical support document (TSD) for 
this action, available in the docket for this rulemaking at 
www.regulations.gov.
    The November 24, 2015 SIP revision submittal also included several 
state regulatory actions for inclusion into the Maryland SIP. On May 
21, 2010, Maryland repealed COMAR 26.11.29 and COMAR 26.11.30, with a 
State effective date of May 31, 2010. The requirements for large non-
EGUs, cement kilns, and IC engines pursuant to the NOX SIP 
Call continue to apply, as noted previously. Therefore, Maryland 
recodified certain portions of the Portland cement plant and natural 
gas compression station provisions (formerly found at COMAR 
26.11.29.15) into new COMAR 26.11.29 (with a State effective date of 
July 20, 2015), retitled NOX Reduction Requirements for Non-
Electric Generating Units. The cement kiln provisions necessary to 
address the NOX SIP Call requirements were revised to add a 
compliance date of April 1, 2017 for the existing NOX 
emission rate limits in the regulation and to remove an alternative 
control method.
    COMAR 26.11.30 formerly included large non-EGUs as participants in 
the NOX Reduction and Trading Program and established an 
ozone season allocation of 947 tons of NOX for the large 
non-EGUs at the only kraft pulp mill located in Maryland.\7\ With 
repeal

[[Page 52261]]

of the NOX Reduction and Trading Program, Maryland modified 
its kraft pulp mill regulation in COMAR 26.11.14.07 to limit 
NOX emissions from fuel burning equipment at kraft pulp 
mills to 947 tons per year (matching the ozone season allocation 
formerly in COMAR 26.11.30).\8\ While this addresses the State's 
current reduction requirements for large non-EGUs, if a new large non-
EGU locates in the State at an existing or new kraft pulp mill, 
Maryland would be required to demonstrate that it is still meeting its 
federal NOX SIP Call requirements. If a new large non-EGU 
locates in the state at a source other than a pulp mill, MDE must take 
regulatory action to re-allocate the non-EGU budget to cover all large 
non-EGUs in the State, and require 40 CFR part 75 monitoring for the 
new non-EGU.
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    \7\ 40 CFR 97 Appendix C established Maryland's large non-EGU 
budget as 1013 tons. The kraft pulp mill was allocated 947 tons, 
with the remainder of the budget reserved in a set-aside account for 
allocation to new sources.
    \8\ The NOX SIP Call requirements applicable to large 
non-EGUs that were previously in COMAR 26.11.30 are now addressed in 
Maryland regulation COMAR 26.11.14--Control of Emissions from Kraft 
Pulp Mills, which was submitted to EPA as a separate SIP revision 
submittal, and for which EPA is taking separate action. See 
rulemaking docket EPA-R03-OAR-2016-0054 for Maryland submittal #14-
04 dated October 8, 2014.
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    On July 10, 2015, Maryland made some additional regulatory 
modifications to both COMAR 26.11.29 and 26.11.30. COMAR 26.11.29 was 
revised to include only the provisions pertaining to IC engines and 
retitled Control of NOX Emissions from Natural Gas Pipeline 
Compression Stations. The provisions for Portland cement manufacturing 
plants were removed from COMAR 26.11.29 and recodified and consolidated 
with the requirements for cement kilns, which were previously scattered 
among other COMAR regulations, into new COMAR 26.11.30--Control of 
Portland Cement Manufacturing Plants (with a State effective date of 
July 20, 2015). New COMAR 26.11.30 consolidates previous SIP approved 
requirements for PM, NOX, sulfur dioxide (SO2), 
and visible emissions that apply to Portland cement manufacturing 
plants.
    COMAR 26.11.30 also now contains revised provisions pertaining to 
PM monitoring requirements. The SIP currently requires compliance with 
the PM emission limits by stack tests using Method 5 or 5I of 40 CFR 
part 60. The revision to COMAR 26.11.30 aligned the PM emissions 
monitoring requirements with the monitoring requirements applicable 
under the National Emission Standards for Hazardous Air Pollutants from 
the Portland Cement Manufacturing Industry, 40 CFR part 63, subpart LLL 
(Portland cement NESHAP) (78 FR 10006, February 12, 2013). The revision 
requires performance testing using Method 5 or 5I to establish the 
parameter to be monitored by the PM continuous parametric monitoring 
system (CPMS). The PM CPMS will demonstrate continuing compliance with 
the PM emission limits established in COMAR 26.11.30.04. As explained 
in more detail in EPA's TSD, the revision strengthens the SIP by the 
addition of PM CPMS, and is at least as stringent as the monitoring 
requirements for PM previously approved in the Maryland SIP for cement 
kilns.
    COMAR 26.11.30 also allows cement kilns the option of using PM CPMS 
for monitoring visible emissions in lieu of a continuous opacity 
monitor (COM) when a PM CPMS is installed and operated as specified in 
the rule. In the Portland cement NESHAP, in disagreeing with industry 
commenters who stated a preference for COMs, EPA explained that ``PM 
CPMS has a clear advantage in low PM concentration measurement over 
continuous opacity monitoring systems'' and that ``the CPMS is 
considerably more sensitive than an opacity monitor or bag leak 
detector at detecting fluctuations in PM level.'' The revision in COMAR 
26.11.30 allowing the use of PM CPMS in lieu of COMs is approvable 
under section 110 of the CAA for the reasons noted above and as 
discussed in EPA's TSD. EPA does not expect it to interfere with 
attainment of any of the NAAQS, with reasonable further progress, or 
with any other CAA requirement.
    Finally, the November 24, 2015 submittal proposed to remove from 
the Maryland SIP former COMAR provisions which implemented EPA's 
NOX Budget Trading Program under the NOX SIP Call 
as discussed in detail in EPA's TSD for this rulemaking. EPA's 
NOX Budget Trading Program under the NOX SIP Call 
is obsolete as it was replaced by CAIR, which was subsequently replaced 
by CSAPR in 2015 and the CSAPR Update in 2017. Therefore, the removal 
of the NOx Budget Trading Program requirements from the Maryland SIP 
that were formerly in COMAR 26.11.29 and .30 does not impact any of the 
NAAQS, reasonable further progress or any other CAA requirements as 
those NOX reductions now are achieved through the CSAPR 
Update, and the removal is thus approvable under section 110(l) of the 
CAA.
    EPA's TSD prepared for this proposed rulemaking action provides 
further detail on Maryland's submittal and EPA's analysis of Maryland's 
SIP revision submittal. EPA's TSD is available in the docket for this 
rulemaking action and online at www.regulations.gov.

III. Proposed Action

    EPA is proposing to approve Maryland's November 24, 2015 SIP 
revision submittal, as clarified by its February 17, 2017 letter, 
pursuant to sections 110, 182 and 184 of the CAA. EPA's review of this 
material indicates that Maryland's November 24, 2015 submittal, as 
clarified by its February 17, 2017 letter, is approvable as it meets 
requirements for NOX RACT for cement kilns for the 2008 
ozone NAAQS under sections 110, 182 and 184 of the CAA. EPA is also 
proposing to approve the Maryland SIP submittal which includes removal 
of regulations related to the NOX Reduction and Trading 
Program under the NOX SIP Call as that trading program is no 
longer operating as it has been replaced by the CSAPR Update as noted 
previously. Thus, the Maryland regulations in the SIP which addressed 
the NOX Reduction and Trading Program no longer provide 
emission reductions. Additionally, EPA is proposing to approve as part 
of the SIP Maryland's revised COMAR regulations that recodified certain 
requirements applicable to Portland cement manufacturing plants and 
natural gas compression stations and added new requirements for 
Portland cement plants and natural gas compression stations which are 
SIP strengthening under section 110 of the CAA. Finally, EPA is 
proposing to approve a new regulatory provision for inclusion in the 
Maryland SIP which creates new emission and monitoring requirements for 
cement kiln emissions as the new provision will strengthen the Maryland 
SIP and is approvable under section 110 of the CAA. EPA is taking 
comments on the issues discussed in this document. These comments will 
be considered before taking final action.

IV. Incorporation by Reference

    In this proposed rulemaking action, 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 revisions to COMAR 26.01.10, 
COMAR 26.11.09.08, COMAR 26.11.29 and COMAR 26.11.30 as described in 
this proposed rulemaking action. These documents are available 
electronically through www.regulations.gov and/or may be viewed at the 
appropriate EPA office (see the ADDRESSES section of this preamble for 
more information).

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V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 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 approves state law as meeting Federal requirements and does 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 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).
    This rulemaking action proposing to approve NOX RACT for 
cement kilns for the 2008 ozone NAAQS; to remove Maryland's 
NOX Reduction and Trading Program regulations under the 
NOX SIP Call; and to include revised and recodified 
provisions for natural gas compression stations and Portland cement 
manufacturing plants in Maryland regulations COMAR 26.11.29 and COMAR 
26.11.30 respectively, does not have tribal implications as specified 
by Executive Order 13175 (65 FR 67249, November 9, 2000). This is due 
to the fact that this SIP does not apply to Indian country, and 
therefore will not impose substantial direct costs on tribal 
governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

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

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

    Dated: October 25, 2017.
Cosmo Servidio,
Regional Administrator, Region III.
[FR Doc. 2017-24536 Filed 11-9-17; 8:45 am]
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