[Federal Register Volume 83, Number 161 (Monday, August 20, 2018)]
[Proposed Rules]
[Pages 42063-42066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-17835]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2018-0587; FRL-9982-58--Region 9]


Revisions to California State Implementation Plan; South Coast 
Air Quality Management District, San Joaquin Valley Air Pollution 
Control District and Yolo-Solano Air Quality Management; Nonattainment 
New Source Review Requirements for the 2008 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve three state implementation plan (SIP) revisions submitted by 
the State of California addressing the nonattainment new source review 
(NNSR) requirements for the 2008 8-hour ozone National Ambient Air 
Quality Standards (NAAQS). These SIP revisions address the South Coast 
Air Quality Management District (SCAQMD or District), San Joaquin 
Valley Air Pollution Control District (SJVAPCD or District) and Yolo-
Solano Air Quality Management District (YSAQMD or District) portions of 
the California SIP. This action is being taken pursuant to the Clean 
Air Act (CAA or ``Act'') and its implementing regulations.

DATES: Any comments must arrive by September 19, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2018-0587 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 removed or edited from Regulations.gov. For either 
manner of submission, the EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. The EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region 9, (415) 
972-3534, [email protected].

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

Table of Contents

I. Background and Purpose
II. The State's Submittal
    A. What did the State submit?

[[Page 42064]]

    B. What is the purpose of the submitted certification letters?
III. Analysis of Nonattainment New Source Review Requirements
    A. South Coast Air Quality Management District (SCAQMD)
    B. San Joaquin Valley Air Pollution Control District (SJVAPCD)
    C. Yolo-Solano Air Quality Management District (YSAQMD)
IV. Proposed Action and Public Comment
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Background and Purpose

    On March 12, 2008, the EPA promulgated a revised 8-hour ozone NAAQS 
of 0.075 parts per million (ppm).\1\ Upon promulgation of a new or 
revised NAAQS, the CAA requires the EPA to designate as nonattainment 
any area that is violating the NAAQS based on the three most recent 
years of ambient air quality data. The three California air Districts 
that are subject to this action were designated nonattainment for the 
2008 8-hour ozone NAAQS on April 30, 2012, using years 2009-2011 
ambient air quality data.\2\ At the time of designation, the SCAQMD was 
classified as an Extreme ozone nonattainment area for the South Coast 
Air Basin and a Severe ozone nonattainment area for the Coachella 
Valley Air Basin. The SJVAPCD was classified as an Extreme ozone 
nonattainment area, and the YSAQMD was classified as a Severe ozone 
nonattainment area.
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    \1\ 73 FR 16436 (March 27, 2008).
    \2\ 77 FR 30088 (May 21, 2012).
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    On March 6, 2015, EPA issued a final rule entitled, 
``Implementation of the 2008 National Ambient Air Quality Standards for 
Ozone: State Implementation Plan Requirements'' (SIP Requirements 
Rule), which establishes the requirements and deadlines that state, 
tribal, and local air quality management agencies must meet as they 
develop implementation plans for areas where ozone concentrations 
exceed the 2008 8-hour ozone NAAQS.\3\ Based on the initial 
nonattainment designations for the 2008 8-hour ozone standard, each 
District was required to make a SIP revision addressing nonattainment 
new source review no later than July 20, 2015.\4\ This requirement may 
be met by submitting a SIP revision consisting of a new or revised NNSR 
permit program, or an analysis demonstrating that the existing SIP-
approved NNSR permit program meets the applicable 2008 ozone 
requirements and a letter certifying the analysis.
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    \3\ 80 FR 12263 (March 6, 2015). The SIP Requirements Rule 
addresses a range of nonattainment area SIP requirements for the 
2008 ozone NAAQS, including requirements pertaining to attainment 
demonstrations, reasonable further progress (RFP), reasonably 
available control technology, reasonably available control measures, 
major new source review, emission inventories, and the timing of SIP 
submissions and of compliance with emission control measures in the 
SIP. The rule also revokes the 1997 ozone NAAQS and establishes 
anti-backsliding requirements.
    \4\ 40 CFR 51.1114.
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    On February 3, 2017, EPA issued a final rule entitled, ``Findings 
of Failure to Submit State Implementation Plan Submittals for the 2008 
Ozone National Ambient Air Quality Standards (NAAQS)'' (FFS Rule). The 
rule found that certain state and local air agencies, including the 
SCAQMD, SJVAPCD and YSAQMD, had failed to submit a SIP revision in a 
timely manner to satisfy specific New Source Review requirements that 
apply to nonattainment areas. The rule established certain deadlines 
for the imposition of sanctions, if a state does not submit a timely 
SIP revision addressing the requirements for which the finding was 
made, and for the EPA to promulgate a Federal Implementation Plan (FIP) 
to address any outstanding SIP requirements.

II. The State's Submittal

A. What did the State submit?

    Table 1 lists the dates the submitted 2008 Ozone Certification 
letters addressed by this proposal were adopted by each air District 
and submitted by the California Air Resources Board (CARB), the agency 
that serves as the governor's designee for California SIP submittals.

                Table 1--Submitted Certification Letters
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                District                   Adoption date  Submittal date
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South Coast AQMD........................        7/7/2017        11/16/17
San Joaquin Valley APCD.................         4/19/18         6/19/18
Yolo-Solano AQMD........................         3/14/18         6/19/18
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    On July 31, 2018, CARB's November 16, 2017 submittal of SCAQMD's 
2008 Certification letter was deemed to meet the completeness criteria 
in 40 CFR part 51, appendix V, which must be met before formal EPA 
review. On July 18, 2018, CARB's June 19, 2018 submittal of SJVAPCD's 
and YSAQMD's 2008 Certification letters were also deemed to meet the 
completeness criteria in 40 CFR part 51, appendix V.

B. What is the purpose of the submitted certification letters?

    The submittal from each District is intended to satisfy the SIP 
Requirement Rule that requires states to make a SIP revision addressing 
nonattainment new source review and the FFS Rule that requires each 
District to make a SIP submittal by September 6, 2018. The SIP for each 
District currently contains approved NNSR permit programs based on 
their nonattainment classification for the 1997 8-hour ozone NAAQS. The 
submitted certification letters provide a mechanism for each District 
to satisfy the 40 CFR 51.1114 submittal requirements based on their 
2008 8-hr ozone nonattainment designations. EPA's analysis of how these 
SIP revisions address the NNSR requirements for the 2008 8-hour ozone 
NAAQS is provided below.

III. Analysis of Nonattainment New Source Review Requirements

    The minimum SIP requirements for NNSR permitting programs for the 
2008 8-hour ozone NAAQS are contained in 40 CFR 51.165. These NNSR 
program requirements include those promulgated in the ``Phase 2 Rule'' 
implementing the 1997 8-hour ozone NAAQS \5\ and the SIP Requirements 
Rule implementing the 2008 8-hour ozone NAAQS. Under the Phase 2 Rule, 
the SIP for each ozone nonattainment area must contain NNSR provisions 
that: (1) Set major source thresholds for nitrogen oxides 
(NOX) and volatile organic compounds (VOC) pursuant to 40 
CFR 51.165(a)(1)(iv)(A)(1)(i)-(iv) and (2); (2) classify physical 
changes at a major

[[Page 42065]]

source if the change would constitute a major source by itself pursuant 
to 40 CFR 51.165(a)(1)(iv)(A)(3); (3) consider any significant net 
emissions increase of NOX as a significant net emissions 
increase for ozone pursuant to 40 CFR 51.165(a)(1)(v)(E); (4) consider 
any increase of VOC emissions in extreme ozone nonattainment areas as 
significant net emissions increases and major modifications for ozone 
pursuant to 40 CFR 51.165(a)(1)(v)(F); (5) set significant emissions 
rates for VOC and NOX as ozone precursors pursuant to 40 CFR 
51.165(a)(1)(x)(A)-(C) and (E); (6) contain provisions for emissions 
reductions credits pursuant to 40 CFR 51.165(a)(3)(ii)(C)(1)-(2); (7) 
provide that the requirements applicable to VOC also apply to 
NOX pursuant to 40 CFR 51.165(a)(8); and (8) set offset 
ratios for VOC and NOX pursuant to 40 CFR 51.165(a)(9)(ii)-
(iv). Under the SIP Requirements Rule the SIP for each ozone 
nonattainment area designated nonattainment for the 2008 8-hour ozone 
NAAQS and designated nonattainment for the 1997 ozone NAAQS as of April 
6, 2015, must also contain NNSR provisions that include the anti-
backsliding requirements at 40 CFR 51.1105.
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    \5\ 70 FR 71612 (November 29, 2005).
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A. South Coast Air Quality Management District (SCAQMD)

    The SCAQMD's longstanding SIP-approved NNSR program,\6\ established 
in Regulation XIII--New Source Review, of the SCAQMD's Rules and 
Regulations, applies to the construction and modification of stationary 
sources, including major stationary sources in nonattainment areas 
under its jurisdiction. The SCAQMD's submitted SIP revision includes a 
demonstration, consisting of a table listing each of the Phase 2 Rule 
and SIP Requirements Rule NNSR program requirements and a citation to 
the specific provision of the rule satisfying the requirement. The 
submittal also includes a certification by the SCAQMD that the cited 
rules meet the federal NNSR requirements for the applicable ozone 
nonattainment designations. These documents are available in the docket 
for this action. EPA has reviewed the demonstration and cited program 
elements intended to meet the federal NNSR requirements and is 
proposing to approve the SCAQMD's submittal because the current SIP-
approved NSR program contains all the Phase 2 Rule and SIP Requirements 
Rule NNSR program requirements applicable to the South Coast Air Basin 
as an Extreme ozone nonattainment area, and all the requirements 
applicable to the Coachella Valley Air Basin as a Severe ozone 
nonattainment area.
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    \6\ 61 FR 64291 (December 4, 1996); 64 FR 13514, (March 19, 
1999); 71 FR 35157 (June 19, 2006).
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B. San Joaquin Valley Air Pollution Control District (SJVAPCD)

    The SJVAPCD's longstanding SIP-approved NNSR program,\7\ 
established in Rule 2201--New and Modified Stationary Source Review 
Rule, applies to the construction and modification of stationary 
sources, including major stationary sources in nonattainment areas 
under its jurisdiction. The SJVAPCD's submitted SIP revision includes a 
demonstration, consisting of a table listing each of the Phase 2 Rule 
and SIP Requirements Rule NNSR program requirements and a citation to 
the specific provision of the rule satisfying the requirement. The 
submittal also includes a certification by the SJVAPCD that the cited 
rules meet the federal NNSR requirements for the applicable ozone 
nonattainment designations. These documents are available in the docket 
for this action. EPA has reviewed the demonstration and cited program 
elements intended to meet the federal NNSR requirements and is 
proposing to approve the SJVAPCD's submittal because the current SIP-
approved NSR program contains all the Phase 2 Rule and SIP Requirements 
Rule NNSR program requirements applicable to an Extreme ozone 
nonattainment area.
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    \7\ 79 FR 55637 (September 14, 2014).
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C. Yolo-Solano Air Quality Management District (YSAQMD)

    The YSAQMD's longstanding SIP-approved NNSR program,\8\ established 
in Rule 3.4--New Source Review, applies to the construction and 
modification of stationary sources, including major stationary sources 
in nonattainment areas under its jurisdiction. The YSAQMD's submitted 
SIP revision includes a demonstration, consisting of a table listing 
each of the Phase 2 Rule and SIP Requirements Rule NNSR program 
requirements and a citation to the specific provision of the rule 
satisfying the requirement. The submittal also includes a certification 
by the YSAQMD that the cited rules meet the federal NNSR requirements 
for the applicable ozone nonattainment designations. These documents 
are available in the docket for this action. EPA has reviewed the 
demonstration and cited program elements intended to meet the federal 
NNSR requirements and is proposing to approve the YSAQMD's submittal 
because the current SIP-approved NSR program contains all the Phase 2 
Rule and SIP Requirements Rule NNSR program requirements for a Severe 
ozone nonattainment area.
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    \8\ 62 FR 36214 (July 7, 1997).
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IV. Proposed Action and Public Comment

    EPA is proposing to approve SIP revisions addressing the NNSR 
requirements for the 2008 8-hour ozone NAAQS for the SCAQMD, SJVAPCD 
and YSAQMD. In support of this proposed action, we have concluded that 
our approval of the submitted 2008 Ozone certifications for each 
District would comply with section 110(l) of the Act because the 
submittals will not interfere with continued attainment of the NAAQS in 
each District. EPA has concluded that the State's submission fulfills 
the 40 CFR 51.1114 revision requirement and meets the requirements of 
CAA section 110 and the minimum SIP requirements of 40 CFR 51.165. The 
intended effect of our proposed action is to approve the submitted 
certifications as meeting the applicable Phase 2 Rule requirements. If 
we finalize this action as proposed, our action would incorporate these 
certifications into the federally enforceable SIP and be codified 
through revisions to 40 CFR 52.220 (Identification of plan).
    We will accept comments from the public on this proposal until 
September 19, 2018.
    In addition, the FFS Rule issued by EPA on February 3, 2017 started 
an 18-month sanctions clock and a 24-month Federal Implementation Plan 
(FIP) clock. See 82 FR 9158. The 18-month sanctions clock was stopped 
upon receipt of California's SIP revisions and our determination that 
the submittals were complete. We determined the submittals were 
complete on July 18, 2018, for the SJVAPCD and YSAQMD, and on July 31, 
2018, for the SCAQMD. The 24-month FIP clock will stop upon the 
effective date of our final approval.

V. Incorporation by Reference

    In this document, the EPA is proposing to include in a final EPA 
rule, regulatory text that includes incorporation by reference. In 
accordance with requirements of 1 CFR 51.5, the EPA is proposing to 
incorporate by reference the certifications listed in Table 1 of this 
preamble. The EPA has made, and will continue to make, these materials 
available electronically through www.regulations.gov and in hard copy 
at the EPA Region IX Office (please contact the person identified in 
the FOR FURTHER INFORMATION CONTACT section of this preamble for more 
information).

[[Page 42066]]

VI. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
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 Clean Air Act; 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).
     In addition, 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 and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law as specified by Executive Order 13175 (65 FR 67249, November 9, 
2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

    Dated: August 8, 2018.
Deborah Jordan,
Acting Regional Administrator, Region IX.
[FR Doc. 2018-17835 Filed 8-17-18; 8:45 am]
 BILLING CODE 6560-50-P