[Federal Register Volume 83, Number 195 (Tuesday, October 9, 2018)]
[Proposed Rules]
[Pages 50551-50556]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-21877]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2018-0383; FRL-9985-09-Region 5]


Air Plan Approval; Illinois; Nonattainment New Source Review 
Requirements for the 2008 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve, as a State Implementation Plan (SIP) revision, Illinois' 
certification that its SIP satisfies the nonattainment new source 
review (NNSR) requirements of the Clean Air Act (CAA) for the 2008 
ozone National Ambient Air Quality Standard (NAAQS or Standard). Final 
approval of the Illinois NNSR certification SIP will permanently stop 
the Federal Implementation Plan (FIP) clocks triggered by EPA's 
February 3 and December 11, 2017 findings that Illinois failed to 
submit an NNSR plan for the Illinois portion of the Chicago-Naperville, 
Illinois-Indiana-Wisconsin area (Chicago Nonattainment Area).

DATES: Written comments must be received on or before November 8, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2018-0383 at https://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: David Ogulei, Environmental Engineer, 
Air Permits Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 353-0987, [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. Background
II. Summary of the State's Submittal
III. What is EPA's analysis?
IV. Proposed Action
V. Statutory and Executive Order Reviews

I. Background

A. 2008 8-Hour Ozone NAAQS

    On March 12, 2008, EPA promulgated a revised 8-hour ozone NAAQS of 
0.075 parts per million (ppm). See 73 FR 16436 (March 27, 2008). Upon 
promulgation of a new or revised NAAQS, the CAA requires EPA to 
designate as nonattainment any area that is violating the NAAQS based 
on the three most recent years of ambient air quality data available at 
the conclusion of the designation process. For ozone NAAQS, EPA must 
also classify any nonattainment areas at the time of designation based 
on the severity of their ozone levels (as determined based on the 
area's ``design value'' \1\). See CAA sections 107(d)(1) and 181(a)(1) 
and 77 FR 34225. The possible classifications are ``Marginal,'' 
``Moderate,'' ``Serious,'' ``Severe,'' and ``Extreme.'' Nonattainment 
areas with a lower classification (such as marginal areas) have ozone 
levels that are closer to meeting the standard than areas with a higher 
classification (such as Extreme areas). See CAA section 181(a)(1).
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    \1\ Under 40 CFR 50.15, the ``design value'' for the 2008 8-hour 
ozone NAAQS is the 3-year average of the annual fourth-highest daily 
maximum 8-hour average ambient air quality ozone concentrations.
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    On March 6, 2015, EPA issued a final rule titled ``Implementation 
of the 2008 National Ambient Air Quality Standards for Ozone: State 
Implementation Plan Requirements'' (SIP Requirements Rule), which 
detailed the requirements that state, tribal, and local air quality 
management agencies must meet as they develop implementation plans for 
areas where air quality exceeds the 2008 8-hour ozone NAAQS. See 80 FR 
12264 (March 6, 2015).\2\ Areas that were designated as marginal ozone 
nonattainment areas were required to attain the 2008 8-hour ozone NAAQS 
no later than 36 months after the effective date of area designations 
for the 2008 8-hour ozone NAAQS (i.e., July 20, 2015), based on 2012-
2014 monitoring data. See 40 CFR 51.1103.
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    \2\ The SIP Requirements Rule addresses a range of nonattainment 
area SIP requirements for the 2008 8-hour 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.
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    Areas designated nonattainment for the ozone NAAQS are subject to 
the general nonattainment area planning requirements of CAA section 172 
and also to the ozone-specific planning requirements of CAA section 
182. States in the Ozone Transport Region (OTR) \3\ are additionally 
subject to the requirements outlined in CAA section 184. Ozone 
nonattainment areas in the lower classification levels have fewer and/
or less stringent mandatory air quality planning and control 
requirements than those in higher classifications. For a marginal area, 
a state is required to submit a baseline emissions inventory, adopt a 
SIP requiring emissions statements from stationary sources, and 
implement a NNSR program for the relevant ozone standard. See CAA 
section 182(a). For each higher ozone nonattainment

[[Page 50552]]

classification, a state must comply with all lower area classification 
requirements, plus additional emissions controls and more expansive 
NNSR offset requirements. For example, the state must comply with all 
marginal area classification requirements plus it must submit SIP 
revisions to: (1) Provide for reductions of emissions of volatile 
organic compounds (VOC) and nitrogen oxides (NOX) of at 
least 15 percent from baseline emissions over 6 years; (2) require the 
implementation of reasonably available control technology (RACT); (3) 
provide for a vehicle emissions inspection and maintenance (I/M) 
program; (4) include contingency measures for failure to attain; and 
(5) include stage II gasoline vapor recovery requirements. See 42 
U.S.C. 7511a(b) and 7502.
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    \3\ The OTR is comprised of the following states: Connecticut, 
Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, 
New York, Pennsylvania, Rhode Island, Vermont, and the Consolidated 
Metropolitan Statistical Area that includes the District of 
Columbia. 42 U.S.C. 7511c(a). States in the OTR are required to 
submit SIP revisions addressing reasonably available control 
technology (RACT) requirements for the pollutants that form ozone, 
even if the areas in the state meet the ozone standards.
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    EPA classified the Chicago-Naperville, Illinois-Indiana-Wisconsin 
area (Chicago Nonattainment Area) as a marginal nonattainment area for 
the 2008 8-hour ozone NAAQS on June 11, 2012 (effective July 20, 2012) 
using certified ambient air quality monitoring data from calendar years 
2009-2011. See 77 FR 34221. The Chicago area includes Cook, DuPage, 
Kane, Lake, McHenry, and Will Counties and parts of Grundy and Kendall 
Counties in Illinois; Lake and Porter Counties in Indiana; and part of 
Kenosha County in Wisconsin.
    On May 4, 2016, pursuant to section 181(b)(2) of the CAA, EPA 
determined that the Chicago area failed to attain the 2008 8-hour ozone 
NAAQS by the July 20, 2015, marginal area attainment deadline and did 
not meet the CAA section 181(a)(5) criteria, as interpreted in 40 CFR 
51.1107, for a 1-year attainment date extension. See 81 FR 26697 (May 
4, 2016). Thus, EPA reclassified this area by operation of law as 
moderate for the 2008 ozone NAAQS. Id.\4\ In that action, EPA 
established January 1, 2017, as the due date for the state to submit 
all moderate area nonattainment plan SIP requirements applicable to 
newly reclassified areas.
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    \4\ The Metro-East area also did not attain the 2008 8-hour 
ozone NAAQS by July 20, 2015; however, EPA found this area to be 
eligible for a 1-year attainment date extension, for a new 
attainment date of July 20, 2016. See 81 FR 26697 (May 4, 2016).
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    As explained in the SIP Requirements Rule, Illinois was required to 
develop a SIP revision addressing NNSR requirements for its marginal 
ozone nonattainment areas by July 20, 2015. See 80 FR 12266 (March 6, 
2015). Additionally, because the Chicago area was reclassified to 
moderate nonattainment, Illinois was required to submit a moderate area 
NNSR SIP by January 1, 2017. See 81 FR 26697 (May 4, 2016).\5\ NNSR is 
a preconstruction review permit program that applies to new major 
stationary sources or major modifications at existing sources located 
in a nonattainment area. See CAA sections 172(c)(5), 173 and 182. The 
specific NNSR requirements for the 2008 8-hour ozone NAAQS are located 
in 40 CFR 51.160-165.
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    \5\ Illinois' obligation to submit the NNSR SIP was not affected 
by the D.C. Circuit Court's February 16, 2018 decision on portions 
of the SIP Requirements Rule in South Coast Air Quality Mgmt. Dist. 
v. EPA, No. 15-1115, 2018 U.S. App. LEXIS 3636 (DC Cir. Feb. 16, 
2018).
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B. 2017 Findings of Failure To Submit SIPs for the 2008 8-Hour Ozone 
NAAQS

    On February 3, 2017, EPA found that 15 states and the District of 
Columbia failed to submit SIP revisions to satisfy certain 
nonattainment plan requirements for the 2008 ozone NAAQS. See 82 FR 
9158. EPA found, inter alia, that Illinois failed to timely submit a 
SIP revision to satisfy NNSR requirements for the Chicago and Metro-
East \6\ ozone nonattainment areas. In addition, on December 11, 2017, 
EPA found, inter alia, that Illinois failed to timely submit a revision 
to its SIP to satisfy moderate NNSR requirements for the Chicago area. 
See 82 FR 58118.
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    \6\ The Metro-East area includes the Illinois portion of the St. 
Louis-St. Charles-Farmington, Missouri-Illinois ozone nonattainment 
area, which includes Madison, Monroe and St. Clair Counties in 
Illinois, and Franklin, Jefferson, St. Charles, and St. Louis 
Counties and the City of St. Louis in Missouri.
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    These findings established certain deadlines for the imposition of 
sanctions if a state does not submit a timely SIP revision addressing 
the requirements for which EPA made the findings and the requirement 
for EPA to promulgate a FIP to address any outstanding SIP 
requirements. Specifically, Illinois was required to submit a complete 
SIP addressing the deficiencies that were the basis for each finding 
within 18 months of the effective dates of the findings (i.e., 
September 6, 2018 and July 10, 2019, respectively) so as to avoid 
triggering, pursuant to CAA section 179(a) and (b) and 40 CFR 52.31, 
the offset sanction identified in CAA section 179(b)(2) in the affected 
nonattainment area. Additionally, these rules triggered the requirement 
for EPA to promulgate a FIP for the affected nonattainment area if EPA 
does not take final action to approve the state's submittal within 2 
years of the effective date of the findings (i.e., March 6, 2019, and 
January 10, 2020, respectively).
    On March 1, 2018, EPA redesignated the Metro-East area to 
attainment for the 2008 8-hour ozone NAAQS because EPA found this area 
to have met the statutory requirements for redesignation to attainment 
under the CAA. See 83 FR 8756 (March 1, 2018). In that action, EPA also 
approved, as a revision to the Illinois SIP, Illinois' plan for 
maintaining the 2008 ozone NAAQS through calendar year 2030 in the 
Metro-East area. NNSR SIP revisions are no longer required if an area 
is redesignated to attainment; the CAA's Prevention of Significant 
Deterioration (PSD) program requirements apply in lieu of NNSR. See 82 
FR 9160. Therefore, the finding of failure to submit no longer applies 
to areas that have been redesignated to attainment. Because the Metro-
East area is now designated attainment, a NNSR SIP is not required for 
this area.
    On May 23, 2018, the Illinois Environmental Protection Agency 
(IEPA) submitted a SIP revision addressing the NNSR requirements of the 
CAA for areas designated as nonattainment for the 2008 ozone NAAQS. On 
July 12, 2018, EPA found that Illinois' NNSR SIP submission fulfilled 
the completeness criteria in 40 CFR part 51, appendix V.\7\ Through the 
completeness finding, EPA determined that the deficiencies which formed 
the basis for the February 3, 2017 and December 11, 2017 findings had 
been corrected and, as a result, the sanctions clock was permanently 
stopped. Final approval of Illinois' May 23, 2018 NNSR SIP revision 
would permanently stop the FIP clocks triggered by the February 3, 2017 
and December 11, 2017 findings.
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    \7\ Letter from Edward Nam, Director, Air & Radiation Division, 
EPA Region 5 to Julie Armitage, Chief, Bureau of Air, IEPA.
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II. Summary of the State's Submittal

    On May 23, 2018, IEPA submitted a SIP revision requesting EPA's 
approval of Illinois' certification that its existing SIP-approved NNSR 
regulations fully satisfy the NNSR requirements set forth in 40 CFR 
51.165 for both marginal and moderate ozone nonattainment areas for the 
2008 ozone NAAQS. IEPA indicates that its NNSR SIP submission is 
intended to respond to the February 3 and December 11, 2017 findings 
for the Chicago and Metro-East areas. Specifically, Illinois is 
certifying that its existing NNSR program covering its ozone 
nonattainment areas for the 2008 8-hour ozone NAAQS, including the 
Chicago Nonattainment Area, contains the NNSR elements required by 40 
CFR 51.165, as amended by the SIP Requirements Rule, for ozone and its 
precursors.
    Illinois' submittal includes a document titled, ``Illinois' 
Compliance

[[Page 50553]]

With Nonattainment New Source Review Requirements For The 2008 Ozone 
Standard'' (NNSR checklist), which contains Illinois' detailed 
assessment of how its SIP-approved NNSR regulations address each of the 
NNSR requirements for the 2008 ozone NAAQS as codified at 40 CFR 
51.165. Illinois certifies that it already complies with CAA sections 
172(c)(5) and 182(a)(2)(C), which require states that have been 
designated nonattainment for an ozone NAAQS to submit plans or plan 
revisions containing certain required elements, including permit 
programs for the construction and operation of new or modified 
stationary sources in the nonattainment area. Specifically, Illinois 
has certified that its existing State regulations in Title 35 of 
Illinois Administrative Code Part 203 (35 IAC Part 203) fully satisfy 
the NNSR requirements set forth in 40 CFR 51.165 for both marginal and 
moderate ozone nonattainment areas because they contain all NNSR SIP 
elements required by 40 CFR 51.165 for its ozone nonattainment areas. 
EPA proposes to find that Illinois' submittal addresses the State's 
obligations as described in the February 3 and December 11, 2017 
findings.

III. What is EPA's analysis?

    The minimum SIP requirements for NNSR permitting programs for the 
2008 8-hour ozone NAAQS are located in 40 CFR 51.165. See 40 CFR 
51.1114. These NNSR program requirements include those promulgated in 
the ``Phase 2 Rule'' implementing the 1997 8-hour ozone NAAQS (75 FR 
71018, November 29, 2005) 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: Set major 
source thresholds for NOX and VOC pursuant to 40 CFR 
51.165(a)(1)(iv)(A)(1)(i)-(iv) and (2); classify physical changes as a 
major source if the change would constitute a major source by itself 
pursuant to 40 CFR 51.165(a)(1)(iv)(A)(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); consider 
certain increases of VOC emissions in extreme ozone nonattainment areas 
as a significant net emissions increase and a major modification for 
ozone pursuant to 40 CFR 51.165(a)(1)(v)(F); set significant emissions 
rates for VOC and NOx as ozone precursors pursuant to 40 CFR 
51.165(a)(1)(x)(A)-(C) and (E); contain provisions for emissions 
reductions credits pursuant to 40 CFR 51.165(a)(3)(ii)(C)(1)-(2); 
provide that the requirements applicable to VOC also apply to 
NOX pursuant to 40 CFR 51.165(a)(8); and set offset ratios 
for VOC and NOX pursuant to 40 CFR 51.165(a)(9)(i)-(iii) 
(renumbered as (a)(9)(ii)-(iv) under the SIP Requirements Rule for the 
2008 8-hour ozone NAAQS). Under the SIP Requirements Rule for the 2008 
8-hour ozone NAAQS, the SIP for each ozone nonattainment area 
designated nonattainment for the 2008 8-hour ozone NAAQS and designated 
nonattainment for the 1997 ozone NAAQS on April 6, 2015, must also 
contain NNSR provisions that include the anti-backsliding requirements 
at 40 CFR 51.1105. See 40 CFR 51.165(a)(12).
    Illinois' NNSR rules, as set forth in 35 IAC Part 203, Major 
Stationary Sources Construction And Modification, are designed to 
ensure that the construction of a major new source of air pollution or 
a large increase of emissions at an existing source does not interfere 
with the attainment demonstration and does not delay timely achievement 
of the ambient air quality standards. The rules require owners or 
operators of major projects to: (1) Apply the Lowest Achievable 
Emission Rate (LAER) or, for certain existing sources, the Best 
Available Control Technology (BACT) on emissions of the nonattainment 
pollutant from the major project; (2) offset the emissions of the 
nonattainment pollutant from a major project by emission reductions 
from other sources in the nonattainment area; (3) demonstrate that 
other sources in the State which are under common ownership or control 
with the person proposing the project are in compliance with the CAA; 
and (4) analyze alternatives to the particular project to determine 
whether the benefits of the project outweigh the environmental and 
social costs.
    EPA last approved revisions to Illinois' NNSR SIP on May 13, 2003. 
See 68 FR 25504 (May 13, 2003).\8\ In that action, EPA approved 
amendments to 35 IAC 203 to better track the language of CAA sections 
182(c)(6), (7), and (8). See 68 FR 25505. The changes dealt with how 
one determines whether a proposed change at a source is a major 
modification.
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    \8\ For other relevant approvals, see 45 FR 11470 (February 21, 
1980); 46 FR 44172 (September 3, 1981); 50 FR 38803 (September 25, 
1985); 51 FR 10837 (March 31, 1986); 57 FR 59928 (December 17,1992); 
and 60 FR 49778 (September 27, 1995).
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    Based on our review of the NNSR checklist that Illinois 
incorporated into the SIP submittal, and the version of 35 IAC 203 
approved into the Illinois SIP, we propose to find that Illinois' SIP-
approved NNSR program at 35 IAC 203 contains the minimum required NNSR 
elements as specified in 40 CFR 51.165 for Illinois' ozone 
nonattainment areas. We are proposing to approve Illinois' 
certification that 35 IAC 203 is consistent with 40 CFR 51.165 and 
meets the requirements of CAA sections 172(c)(5), 173, 110(a)(2), 
182(a)(4) and 182(b)(5) under the 2008 ozone standard for the Illinois 
portion of the Chicago Ozone Nonattainment Area. Final approval of 
Illinois' NNSR certification would address the deficiencies that were 
the basis for the February 3 and December 11, 2017 findings, and would 
turn off the FIP clock for the Illinois portion of the Chicago 
Nonattainment Area. While some of Illinois' regulations are worded or 
organized differently than the Federal counterparts, EPA proposes to 
find that these differences do not affect the relative stringency of 
such provisions.
    The following table lists the specific provisions of Illinois' NNSR 
rules that address the required elements of the Federal NNSR rules:

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              Federal rule                        Illinois rule
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40 CFR 51.165(a)(1)(iv)(A)(1)(i)-(iv),   35 IAC 203.206(b).
 (2).
40 CFR 51.165(a)(1)(iv)(A)(3)..........  35 IAC 203.206(c).
40 CFR 51.165(a)(1)(v)(E)..............  35 IAC 203.207(b).
40 CFR 51.165(a)(1)(v)(F)..............  35 IAC 203.207(f).
40 CFR 51.165(a)(1)(x)(A)-(C); (E).....  35 IAC 203.207(d), (e) and (f),
                                          and 203.209(a) and (b).
40 CFR 51.165(a)(3)(ii) (C)(1)-(2).....  35 IAC 203.302(a), 203.303(b)
                                          and (f), 203.602, and 203.701.
40 CFR 51.165(a)(8)....................  35 IAC 203.206(b), 203.207(b),
                                          (d), (e) and (f), 203.209(a)
                                          and (b), 203.301(e) and (f),
                                          and 203.302.
40 CFR 51.165(a)(9)(ii), (iv)..........  35 IAC 203.302(a).
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[[Page 50554]]

A. Major Source Thresholds for Ozone--40 CFR 51.165(a)(1)(iv)(A)(1)(i)-
(iv) and (2)

    The major source thresholds for both VOC and NOX (i.e., 
ozone precursors) are defined in 40 CFR 51.165(a)(1)(iv)(A)(1)(i)-(iv) 
and (2). The applicable thresholds vary depending on the classification 
of the ozone nonattainment area. For marginal and moderate ozone 
nonattainment areas, a major stationary source of ozone is a source 
that emits, or has the potential to emit, 100 tons per year or more of 
VOC or NOX. Different emissions thresholds apply for 
Serious, Severe, and Extreme ozone nonattainment areas and for areas 
located in an OTR.
    Illinois has certified that the Federal requirements for major 
source thresholds for VOC and NOX are addressed by 35 IAC 
203.206(b). Under 35 IAC 203.206(b), for an area designated as 
nonattainment for ozone, a major stationary source is a stationary 
source which emits or has the potential to emit VOC \9\ or 
NOX in an amount equal to or greater than (1) 100 tons per 
year in an area classified as marginal or moderate nonattainment for 
ozone; (2) 50 tons per year in an area classified as serious 
nonattainment for ozone; (3) 25 tons per year in an area classified as 
severe nonattainment for ozone; and (4) 10 tons per year in an area 
classified as extreme nonattainment for ozone. Illinois' thresholds are 
consistent with the Federal thresholds; therefore, we propose to find 
that Illinois' NNSR provisions at 35 IAC 203.206(b) satisfy the 
requirements of 40 CFR 51.165(a)(1)(iv)(A)(1)(i)-(iv) and (2).
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    \9\ The Illinois SIP also refers to VOC as volatile organic 
material (VOM). See 35 IAC 211.7150.
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B. Change Constitutes Major Source by Itself--40 CFR 
51.165(a)(1)(iv)(A)(3)

    Under 40 CFR 51.165(a)(1)(iv)(A)(3), any physical change that would 
occur at a stationary source not qualifying as a major stationary 
source becomes a major stationary source, if the change would 
constitute a major stationary source by itself. Illinois has certified 
that this requirement is addressed by 35 IAC 203.206(c), which provides 
that any physical change that occurs at a stationary source which does 
not qualify as a major stationary source will be considered a major 
stationary source, if the change would constitute a major stationary 
source by itself. Illinois' provisions at 35 IAC 203.206(c) for what 
constitutes a major source are consistent with the Federal provisions 
at 40 CFR 51.165(a)(1)(iv)(A)(3); therefore, we propose to find that 
the Illinois SIP at 35 IAC 203.206(c) satisfies the requirements of 40 
CFR 51.165(a)(1)(iv)(A)(3).

C. Significant Net Emissions Increase of NOX is Significant 
for Ozone--40 CFR 51.165(a)(1)(v)(E)

    Under 40 CFR 51.165(a)(1)(v)(E), any significant net emissions 
increase of NOX is considered significant for ozone. 
Illinois has certified that this requirement is addressed by 35 IAC 
203.207(b), which provides that any net emissions increase that is 
significant for VOC or NOX shall be considered significant 
for ozone. Illinois' provisions at 35 IAC 203.207(b) are consistent 
with the Federal requirements at 40 CFR 51.165(a)(1)(v)(E); therefore, 
we propose to find that 35 IAC 203.207(b) satisfies the requirements of 
40 CFR 51.165(a)(1)(v)(E).

D. Any Emissions Change of VOC in an Extreme Area Triggers NNSR--40 CFR 
51.165(a)(1)(v)(F)

    Under 40 CFR 51.165(a)(1)(v)(F), any physical change in, or change 
in the method of operation of, a major stationary source of VOC that 
results in any increase in emissions of VOC from any discrete 
operation, emissions unit, or other pollutant emitting activity at the 
source shall be considered a significant net emissions increase and a 
major modification for ozone, if the major stationary source is located 
in an extreme ozone nonattainment area that is subject to CAA title 1, 
part D subpart 2. Illinois has certified that this requirement is 
addressed by 35 IAC 203.207(f). That provision states that in areas 
classified as extreme nonattainment for ozone, beginning on the date 
that EPA classifies an area as an extreme nonattainment area for ozone, 
any physical change in or change in the method of operation of a major 
stationary source which results in any increase in emissions of VOC or 
NOX from a discrete operation, unit, or other pollutant 
emitting activity shall be considered a major modification. Illinois' 
provisions at 35 IAC 203.207(f) are consistent with the Federal 
requirements at 40 CFR 51.165(a)(1)(v)(F); therefore, we propose to 
find that 35 IAC 203.207(f) satisfies the requirements of 40 CFR 
51.165(a)(1)(v)(F).

E. Significant Emissions Rates for VOC and NOX as Ozone 
Precursors--40 CFR 51.165(a)(1)(x)(A)-(C) and (E)

    Under 40 CFR 51.165(a)(1)(x)(A), (B) and (C), the significant 
emission rate for ozone is defined as 40 tons per year of VOC or 
NOX, except that the significant emission rate in serious or 
extreme nonattainment areas shall be 25 tons per year. Under 40 CFR 
51.165(a)(1)(x)(E), any increase in actual emissions of VOC from any 
emissions unit at a major stationary source of VOC located in an 
extreme ozone nonattainment area shall be considered a significant net 
emissions increase. Illinois has certified that it satisfies these 
requirements pursuant to 35 IAC 203.207(d), (e) and (f), and 35 IAC 
203.209(a) and (b). Specifically, 35 IAC 203.207(d) and (e), and 35 IAC 
203.209(a) and (b) establish the significant emission rate for ozone as 
40 tons per year of VOC or NOX and 25 tons per year in 
serious or extreme nonattainment areas. Additionally, 35 IAC 203.207(f) 
specifies that in areas classified as extreme nonattainment for ozone, 
any physical change in or change in the method of operation of a major 
stationary source which results in any increase in emissions of VOC or 
NOX from a discrete operation, unit, or other pollutant 
emitting activity shall be considered a major modification. Because the 
Illinois SIP's provisions at 35 IAC 203.207(d), (e) and (f), and 35 IAC 
203.209(a) and (b) are consistent with the Federal requirements at 40 
CFR 51.165(a)(1)(x)(A)-(C) and (E), we propose to find that the above 
Illinois SIP provisions satisfy the requirements of 40 CFR 
51.165(a)(1)(x)(A)-(C) and (E).

F. Provisions for Emissions Reduction Credits--40 CFR 
51.165(a)(3)(ii)(C)(1) and (2)

    Under 40 CFR 51.165(a)(3)(ii)(C)(1) and (2), to be considered 
creditable, emission reductions achieved by shutting down an existing 
emission unit or curtailing production or operating hours must be 
surplus, permanent, quantifiable, and federally enforceable. Shutdowns 
or curtailments must have occurred after the last day of the base year 
for the SIP planning process. Reviewing authorities may choose to 
consider a prior shutdown or curtailment to have occurred after the 
last day of the base year if the projected emissions inventory used to 
develop the attainment demonstration explicitly includes emissions from 
the previously shut down or curtailed emissions units, but in no event 
may credit be granted for shutdowns that occurred prior to August 7, 
1977. Shutdown or curtailment reductions occurring before the last day 
of the base year for the SIP planning process may also be generally 
credited if the shutdown or curtailment occurred on or after the date 
the construction permit application is filed or if the applicant can 
establish that the proposed new emissions unit is a replacement for the 
shutdown or curtailed emission unit and the emission reductions that 
result are

[[Page 50555]]

surplus, permanent, quantifiable, and federally enforceable.
    Illinois certifies that these requirements are satisfied by 35 IAC 
203.302(a), 35 IAC 203.303(b) and (f), 35 IAC 203.602 and 35 IAC 
203.701. In particular, 35 IAC 203.302(a) establishes a general 
obligation that ``the owner or operator of a new major source or major 
modification shall provide emission offsets equal to or greater than 
the allowable emissions from the source or the net increase in 
emissions from the modification sufficient to allow [IEPA] to determine 
that the source or modification will not interfere with reasonable 
further progress [RFP] . . . '' With respect to 40 CFR 
51.165(a)(3)(ii)(C)(1)(i), the Illinois SIP at 35 IAC 203.303(b) and 35 
IAC 203.701 requires that all emission offsets must: (1) Be of the same 
pollutant and of a type with approximately the same qualitative 
significance for public health and welfare as that attributed to the 
increase from a particular change; (2) be federally enforceable by 
permit; (3) not have been previously relied on in issuing any permit 
pursuant to the Illinois SIP for demonstrating attainment or RFP; and 
(4) be maintained permanently. Further, 35 IAC 203.303(b)(3) restricts 
the use of emission reductions from past shutdowns or curtailments, and 
requires the proposed new or modified source to be a replacement for 
the shutdown or curtailment. Additionally, under 35 IAC 203.602, no 
person shall cause or allow the operation of a new major stationary 
source or major modification where the owner or operator has 
demonstrated that it would not interfere with RFP by providing emission 
offsets pursuant to 35 IAC 203.302 without maintaining those emission 
offsets or other equivalent offsets.\10\
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    \10\ Illinois has explained that the phrase ``other equivalent 
offsets'' as used in 35 IAC 203.602, coupled with the language in 35 
IAC 203.701, establishes that emission offsets must be permanent, 
and that if emission reductions relied upon by a source cease to be 
viable as offsets for some reason, the source would need to obtain 
equivalent offsets.
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    With respect to 40 CFR 51.165(a)(3)(ii)(C)(2), we note that 
Illinois' language in 35 IAC 203.303(b)(3) does not explicitly require 
that shutdowns or curtailments occur on or after the date a permit 
application was filed, as specified in 40 CFR 51.165(a)(3)(ii)(C)(2). 
However, Illinois satisfies the Federal requirements by limiting in 35 
IAC 203.303(b)(3) the circumstances under which prior shutdowns or 
curtailments can be credited as offsets. For example, given an 
applicant for a NNSR permit must provide emission offsets under 35 IAC 
203.302, the meaning of the phrase ``past shutdown'' as used in 35 IAC 
203.303(b)(3) is consistent with the wording of 40 CFR 
51.165(a)(3)(ii)(C)(2)(i) as it establishes additional requirements for 
offsets that occurred prior to the filing of the application. Because 
35 IAC 203.302(a), 35 IAC 203.303(b) and (f), 35 IAC 203.602 and 35 IAC 
203.701 address all of the elements required by 40 CFR 
51.165(a)(3)(ii)(C)(1) and (2), we propose to find that the Illinois 
SIP satisfies the requirements of 40 CFR 51.165(a)(3)(ii)(C)(1) and 
(2).

G. Requirements for VOC Apply to NOX as Ozone Precursors--40 
CFR 51.165(a)(8)

    Under 40 CFR 51.165(a)(8), all requirements applicable to major 
stationary sources and major modifications of VOC shall apply to 
NOX except where the Administrator has granted a 
NOX waiver applying the standards set forth under CAA 
section 182(f) and the waiver continues to apply. Illinois certifies 
that these Federal requirements are satisfied by 35 IAC 203.206(b) 
(major stationary source); 35 IAC 203.207(b), (d), (e) and (f) (major 
modification of a source); 35 IAC 203.209(a) and (b) (significant 
emissions determination); 35 IAC 203.301(e) and (f) (LAER); and 35 IAC 
203.302 (maintenance of RFP and emission offsets). As already 
discussed, we have reviewed 35 IAC 203.206(b); 35 IAC 203.207(b), (d), 
(e) and (f); 35 IAC 203.209(a) and (b); and 35 IAC 203.302 and find 
that these provisions contain language that is consistent with the 
corresponding Federal NNSR requirements with respect to the treatment 
of VOC and NOX in ozone nonattainment areas. The Federal 
requirements for LAER are also addressed by 35 IAC 203.301(e) and (f), 
which establish specific LAER and BACT requirements for existing 
sources located in serious or severe ozone nonattainment areas. Because 
35 IAC 203.206(b), 35 IAC 203.207(b), (d), (e) and (f), 35 IAC 
203.209(a) and (b), 35 IAC 203.301(e) and (f), and 35 IAC 203.302 
contain language that is consistent with the Federal requirements, we 
propose to find that the Illinois SIP satisfies the requirements of 40 
CFR 51.165(a)(8).

H. Offset Ratios for VOC and NOX for Ozone Nonattainment 
Areas--40 CFR 51.165(a)(9)(ii), (iv)

    Under 40 CFR 51.165(a)(9)(ii)(A)-(E), the VOC offset ratios shall 
be 1.1:1 in marginal ozone nonattainment areas, 1.15:1 in moderate 
ozone nonattainment areas, 1.2:1 in serious ozone nonattainment areas, 
1.3:1 in severe ozone nonattainment areas, and 1.3:1 in severe ozone 
nonattainment areas. Illinois certifies that these requirements are 
satisfied by 35 IAC 203.302(a). Specifically, 35 IAC 203.302(a)(1) 
requires offset ratios for both VOC and NOX that are 
consistent with 40 CFR 51.165(a)(9)(ii)(A)-(E). Therefore, we propose 
to find that the Illinois SIP at 35 IAC 203.302(a) satisfies the 
requirements of 40 CFR 51.165(a)(9)(ii)(A)-(E).
    For ozone nonattainment areas subject to CAA title 1, part D, 
subpart 1 but not subpart 2, 40 CFR 51.165(a)(9)(iv) requires an offset 
ratio of at least 1:1. Because all of the current ozone nonattainment 
areas in Illinois were designated under CAA title 1, part D, subpart 2, 
40 CFR 51.165(a)(9)(iv) does not apply to Illinois at this time.

I. OTR Requirements

    Illinois' approved SIP does not contain the OTR provisions set 
forth in 40 CFR 51.165(a)(1)(iv)(A)(1)(ii), 40 CFR 
51.165(a)(1)(iv)(A)(2)(ii), 40 CFR 51.165(a)(1)(v)(E), 40 CFR 
51.165(a)(1)(x)(C), 40 CFR 51.165(a)(8), and 40 CFR 51.165(a)(9)(iii) 
because Illinois is not located in an OTR. Illinois is not required to 
include these requirements in its SIP until such time as EPA publishes 
rules that establish Illinois as a part of the OTR.

J. Anti-backsliding Provisions for the Revoked 1997 NAAQS--40 CFR 
51.165(a)(12)

    ``Anti-backsliding'' provisions are designed to ensure that for 
existing ozone nonattainment areas that are designated nonattainment 
for a revised and more stringent ozone NAAQS, (1) there is protection 
against degradation of air quality (i.e., the areas do not 
``backslide''), (2) the areas continue to make progress toward 
attainment of the new, more stringent NAAQS, and (3) there is 
consistency with the ozone NAAQS implementation framework outlined in 
CAA title 1, part D, subpart 2. See 78 FR 34211. As part of the SIP 
Requirements Rule, EPA revoked the 1997 NAAQS for all purposes and 
established anti-backsliding requirements for areas that remained 
designated nonattainment for the revoked NAAQS. See 80 FR 12265 and 40 
CFR 51.165(a)(12). Under 40 CFR 51.165(a)(12), the anti-backsliding 
requirements at 40 CFR 51.1105 apply in any area designated 
nonattainment for the 2008 ozone NAAQS and designated nonattainment for 
the 1997 ozone NAAQS on April 6, 2015. Illinois has certified that 
there were no areas

[[Page 50556]]

designated as nonattainment for the 1997 8-hour ozone NAAQS on April 6, 
2015.
    Attainment status designations for Illinois are found at 40 CFR 
81.314. With respect to the 1997 8-hour ozone NAAQS, all areas in 
Illinois attained the 1997 8-hour ozone NAAQS prior to April 6, 2015. 
See 77 FR 25363 (April 30, 2012) and 77 FR 48062 (August 13, 2012). 
Since all areas in Illinois were designated as attainment or 
unclassifiable/attainment on April 6, 2015 for the 1997 8-hour ozone 
NAAQS, the anti-backsliding requirements of 40 CFR 51.165(a)(12) do not 
apply for the 2008 8-hour ozone NAAQS. Accordingly, Illinois' approved 
SIP does not contain the anti-backsliding provisions set forth in 40 
CFR 51.165(a)(12).

IV. Proposed Action

    EPA is proposing to approve Illinois' May 23, 2018 SIP revision 
addressing the NNSR requirements for the 2008 ozone NAAQS for the 
Chicago Nonattainment Area. EPA has concluded that Illinois' submission 
fulfills the 40 CFR 51.1114 revision requirement, meets the 
requirements of CAA sections 110 and 172 and the minimum SIP 
requirements of 40 CFR 51.165, as well as its obligations under EPA's 
February 3 and December 11, 2017 findings.

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 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 proposed rule approving Illinois' 2008 8-hour ozone NAAQS NNSR 
SIP revision 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, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: September 25, 2018.
James Payne,
Acting Regional Administrator, Region 5.
[FR Doc. 2018-21877 Filed 10-5-18; 8:45 am]
 BILLING CODE 6560-50-P