[Federal Register Volume 83, Number 73 (Monday, April 16, 2018)]
[Presidential Documents]
[Pages 16761-16765]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-08094]



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Vol. 83

Monday,

No. 73

April 16, 2018

Part III





The President





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Memorandum of April 12, 2018--Promoting Domestic Manufacturing and Job 
Creation--Policies and Procedures Relating to Implementation of Air 
Quality Standards
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                         Presidential Documents 
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  Federal Register / Vol. 83 , No. 73 / Monday, April 16, 2018 / 
Presidential Documents  

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 Title 3--
 The President

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                Memorandum of April 12, 2018

                
Promoting Domestic Manufacturing and Job 
                Creation--Policies and Procedures Relating to 
                Implementation of Air Quality Standards

                Memorandum for the Administrator of the Environmental 
                Protection Agency

                Under the Clean Air Act (CAA), Public Law 88-206, the 
                Environmental Protection Agency (EPA) establishes 
                National Ambient Air Quality Standards (NAAQS) for 
                certain common air pollutants, often referred to as 
                ``criteria pollutants,'' which it must review every 5 
                years. Over the past four decades, EPA has revised 
                these standards a number of times to increase their 
                stringency, including revisions to the standards for 
                ozone, particulate matter, and four other criteria 
                pollutants. Since 1970, emissions of criteria 
                pollutants have declined dramatically and air quality 
                has improved significantly. At the same time, each new 
                revision of the NAAQS triggers numerous new planning, 
                permitting, and other requirements for affected States, 
                localities, and regulated entities. In addition, each 
                new revision can affect the planning for and 
                availability of Federal funding for certain new 
                transportation projects.

                Under the CAA, States with areas that do not meet 
                revised NAAQS must submit for approval to the 
                Administrator of the EPA (Administrator) State 
                Implementation Plans (SIPs) showing how they will 
                comply with the revised standards. States that fail to 
                submit a SIP or that submit an inadequate SIP risk the 
                imposition of a Federal Implementation Plan (FIP) that 
                establishes a path to compliance. In addition, 
                manufacturers and other applicants seeking 
                preconstruction permits for new construction generally 
                must demonstrate compliance with the new standards as 
                soon as they go into effect. As the NAAQS have become 
                more stringent, obtaining the air permits needed to 
                construct new manufacturing and industrial facilities 
                or to expand or modernize existing facilities has 
                become increasingly difficult. In some areas, revised 
                NAAQS are approaching what are considered to be 
                ``background levels'' of pollution (i.e., levels 
                associated with natural sources or emissions 
                originating outside of the United States), leading to 
                significant practical challenges for constructing or 
                expanding manufacturing and industrial facilities. 
                Those challenges range from difficulties in 
                demonstrating compliance to costs and uncertainty 
                associated with permitting delays and emissions-control 
                requirements.

                Under the CAA, EPA has also established a Regional Haze 
                Program, which requires States to submit for the 
                Administrator's approval plans that cover 10-year 
                implementation periods and to demonstrate ``reasonable 
                progress'' toward improving and maintaining visibility 
                in certain national parks and wilderness areas. In 
                recent years, States have spent significant time and 
                resources developing Regional Haze Program SIPs. EPA, 
                however, has rejected several of them, in whole or in 
                part, and issued FIPs in their place, which often 
                impose more costly and burdensome measures.

                Given the national importance of successful and 
                efficient implementation of air quality standards to 
                promote public health, welfare, and economic growth, 
                this memorandum directs the Administrator to take 
                specific actions to ensure efficient and cost-effective 
                implementation of the NAAQS program, including with 
                regard to permitting decisions for new and expanded 
                facilities, and with respect to the Regional Haze 
                Program. These actions are intended

[[Page 16762]]

                to ensure that EPA carries out its core missions of 
                protecting the environment and improving air quality in 
                accord with statutory requirements, while reducing 
                unnecessary impediments to new manufacturing and 
                business expansion essential for a growing economy.

                Accordingly, by the authority vested in me as President 
                by the Constitution and the laws of the United States 
                of America, it is hereby directed as follows:

                Section 1. Timely Processing of State Implementation 
                Plans. The Administrator shall, as practicable and 
                consistent with law, endeavor in all cases to take 
                final action on SIPs within 18 months of the date of 
                the submission of a SIP. This goal applies to all SIPs 
                and SIP revisions submitted pursuant to section 110 of 
                the CAA (42 U.S.C. 7410). The Administrator shall 
                consider the expansion of existing performance goals 
                related to the timely processing of SIPs starting with 
                the Fiscal Year (FY) 2019 performance plan.

                Sec. 2. Cooperative Engagement with States to Review 
                Regional Haze Plans. The Administrator shall undertake 
                a process to review all full or partial FIPs issued 
                under the 2007 planning period of the Regional Haze 
                Program and to develop options, at the request of 
                affected States, consistent with law, to replace FIPs 
                with approvable SIPs. The Administrator shall consider 
                the expansion of existing performance goals related to 
                the cooperative engagement with States in EPA's review 
                of Regional Haze Plans starting with the FY 2019 
                performance plan.

                Sec. 3. Timely Processing of Preconstruction Permit 
                Applications. The Administrator shall endeavor to take 
                final action on applications for preconstruction 
                permits, as appropriate and consistent with law, within 
                1 year of the date of receiving a complete application. 
                This 1-year goal applies to all completed applications 
                for preconstruction permits for which EPA is the direct 
                permitting authority under the CAA. The Administrator 
                shall also seek to ensure that determinations relating 
                to the completeness of an application are not unduly 
                delayed. To the extent that a State is the direct 
                permitting authority, EPA shall endeavor to provide 
                prompt technical support, reviews, and determinations, 
                as necessary and consistent with applicable law, in 
                order to assist States in the timely issuance of 
                preconstruction permits. The Administrator shall, 
                starting with the FY 2019 performance plan, develop 
                performance goals related to the timely processing of 
                preconstruction permit applications.

                Sec. 4. Demonstrations or Petitions Submitted Pursuant 
                to Sections 319 and 179B of the CAA Relating to 
                Emissions Beyond the Control of State and Local Air 
                Agencies. The Administrator shall take the following 
                actions with regard to demonstrations or petitions 
                submitted pursuant to sections 319 and 179B of the CAA 
                (42 U.S.C. 7619, 7509a), in order to provide relief to 
                State and local air agencies addressing emissions that 
                are beyond their control:

                    (a) Timely Processing. With respect to all 
                exceptional event demonstrations submitted pursuant to 
                section 319 of the CAA (42 U.S.C. 7619), and all 
                demonstrations or petitions relating to international 
                emissions submitted pursuant to section 179B of the CAA 
                (42 U.S.C. 7509a), the Administrator shall endeavor to 
                take final action within 120 days of a complete 
                submission, as appropriate and consistent with law. The 
                Administrator shall also endeavor to use available 
                monitoring data and modeling tools to assist States in 
                identifying potential exceptional events and 
                international emissions that may affect concentrations 
                of criteria pollutants. The Administrator shall, 
                starting with the FY 2019 performance plan, develop 
                performance goals related to the timely processing of 
                demonstrations or petitions.
                    (b) Policies Relating to International Emissions. 
                The Administrator shall ensure that EPA continues to 
                take into consideration a State's ability to meet and 
                attain NAAQS that may be affected by international 
                transport of criteria pollutants. With regard to all 
                demonstrations or petitions submitted pursuant to 
                section 179B of the CAA, the Administrator shall also 
                seek to ensure, including through rulemakings or 
                guidance and as appropriate

[[Page 16763]]

                and consistent with law, that EPA does not limit its 
                consideration of demonstrations or petitions to those 
                submitted by States located on the borders of the 
                United States with Mexico or Canada, but rather 
                considers section 179B demonstrations or petitions 
                submitted by any State, including but not limited to 
                those located in the Western United States. 
                Additionally, with respect to section 179B 
                demonstrations or petitions, the Administrator shall 
                ensure that EPA does not limit its consideration to 
                emissions emanating from Mexico or Canada, but rather 
                considers, where appropriate, emissions that may 
                emanate from any location outside the United States, 
                including emissions from Asia.
                    (c) Continuing Assessment. In implementing section 
                179B of the CAA (42 U.S.C. 7509a), section 319 of the 
                CAA (42 U.S.C. 7619), and section 182(h) of the CAA (42 
                U.S.C. 7511a(h)), the Administrator shall ensure that 
                EPA continues to assess background concentrations and 
                sources of pollution outside of the control of State 
                and local air agencies that may affect implementation 
                or application of these provisions. Such assessment may 
                include current and future trends in pollution from 
                foreign sources; regional trends in exceptional events, 
                including wildfires, stratospheric ozone intrusions, 
                and volcanic seismic activities; and other events, as 
                appropriate and consistent with law.

                Sec. 5. Monitoring and Modeling Data. The Administrator 
                shall take the following actions to ensure that 
                monitoring and modeling data is used appropriately in 
                designations, permitting decisions, and demonstrations:

                    (a) Designations. Given the significant planning, 
                permitting, and other requirements for affected States, 
                localities, and regulated entities associated with 
                nonattainment designations, the Administrator's goal 
                for future designations should be, to the extent 
                feasible and permitted by law, to rely on data from 
                EPA-approved air quality monitors for such 
                designations.
                    (b) Permitting Decisions and Demonstrations.

(i) Where modeling is necessary for permitting decisions, for State plans, 
or for exceptional event or international emissions demonstrations, the 
Administrator shall seek to ensure that EPA's applicable modeling tools are 
sufficiently accurate for their intended application; and that the relevant 
State or local air agency, or permit applicant as applicable, is consulted 
regarding whether the use of modeling projections in lieu of monitored data 
is appropriate. The Administrator should also seek to streamline EPA's 
processes for considering and approving inputs to models and updates to 
modeling techniques, including updates to account for site-specific 
conditions. Where EPA-approved models are not representative of site 
conditions or planned activities, the Administrator shall seek, as 
appropriate and consistent with law, to streamline the process for 
approving alternative models and to provide for other methods that promote 
innovative State approaches.

(ii) The Administrator shall, consistent with law, continue to take 
actions, such as setting significant impact levels and related values, that 
enable EPA to clearly identify the types or classes of permitting and 
related decisions that do not require modeling or that can rely on 
streamlined modeling approaches. This requirement is especially important 
in areas for which EPA concludes that permits need to demonstrate 
compliance with NAAQS that have yet to be fully implemented. In developing 
significant impact levels, EPA should, as appropriate and consistent with 
law, allow for natural variability in meteorological conditions and 
industrial processes.

                Sec. 6. Offsets. To the extent consistent with law and 
                air quality improvement, the Administrator shall 
                provide flexibility to States with regard to 
                identifying and achieving offsets, including by 
                allowing intrastate and regional inter-precursor 
                trading. These efforts should include development and 
                implementation of flexible offset policies in rural 
                areas where few facilities exist to

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                generate offsets, in order to promote their economic 
                expansion. The Administrator shall examine steps to 
                help regions and States benefit from flexibilities 
                available in the permitting process for new facilities 
                and projects.

                Sec. 7. Future NAAQS Reviews. The Administrator shall 
                evaluate whether EPA is complying fully with the 
                requirements of section 109(d)(2)(C) of the CAA (42 
                U.S.C. 7409(d)(2)(C)) relating to the scope and 
                characterization of advice provided by its Clean Air 
                Act Scientific Advisory Committee, including 
                requirements that the Committee advise the 
                Administrator regarding background concentrations and 
                adverse public health or other effects that may result 
                from implementation of revised air quality standards. 
                In addition, the Administrator shall examine the 
                current NAAQS review process and develop criteria to 
                ensure transparency in the evaluation, assessment, and 
                characterization of scientific evidence in such 
                reviews. The Administrator shall also develop clear 
                guidance for differentiating the role of science and 
                policy considerations in establishing NAAQS.

                Sec. 8. Timely Issuance of Implementing Regulations and 
                Guidance. When issuing any final rule establishing or 
                revising NAAQS, the Administrator shall, where 
                appropriate and consistent with law, concurrently issue 
                regulations and guidance necessary for implementing the 
                new or revised standards. The regulations and guidance 
                shall specify the information that is relevant to the 
                submission and consideration of SIPs and 
                preconstruction permit applications.

                Sec. 9. Review of Rules, Guidance, Memoranda, and 
                Procedures Relating to State Implementation Plans and 
                Permitting. The Administrator shall evaluate EPA's 
                existing rules, guidance, memoranda, and other public 
                documents relating to the implementation of NAAQS, 
                including documents that relate to the submission and 
                consideration of preconstruction permit applications. 
                The Administrator shall, consistent with law, determine 
                whether any such documents should be revised or 
                rescinded to ensure more timely permitting decisions 
                under the NAAQS. Any resulting revisions or rescissions 
                should seek, among other things, to provide States with 
                additional implementation flexibility. The 
                Administrator should also evaluate the adequacy of 
                existing internal review procedures to determine 
                whether they can be improved to ensure prompt 
                evaluation and timely action on new and pending SIPs 
                and permit applications.

                Sec. 10. General Provisions. (a) Nothing in this 
                memorandum shall be construed to impair or otherwise 
                affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This memorandum shall be implemented consistent 
                with applicable law and subject to the availability of 
                appropriations.

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                    (c) This memorandum is not intended to, and does 
                not, create any right or benefit, substantive or 
                procedural, enforceable at law or in equity by any 
                party against the United States, its departments, 
                agencies, or entities, its officers, employees, or 
                agents, or any other person.
                    (d) You are hereby authorized and directed to 
                publish this memorandum in the Federal Register.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    Washington, April 12, 2018

[FR Doc. 2018-08094
Filed 4-13-18; 11:15 am]
Billing code 6560-50-P