[Federal Register Volume 84, Number 29 (Tuesday, February 12, 2019)]
[Rules and Regulations]
[Pages 3302-3305]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01686]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2018-0535; FRL-9988-40-Region 9]


Clean Air Plans; 2008 8-Hour Ozone Nonattainment Area 
Requirements; San Joaquin Valley, California

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve portions of three state implementation plan (SIP) 
revisions submitted by the State of California to meet Clean Air Act 
(CAA or ``the Act'') requirements for the 2008 8-hour ozone national 
ambient air quality standards (NAAQS or ``standards'') in the San 
Joaquin Valley, California ozone nonattainment area. First, the EPA is 
approving the portions of the ``2016 Ozone Plan for the 2008 8-Hour 
Ozone Standard'' (``2016 Ozone Plan'') that address the requirements to 
demonstrate attainment by the applicable attainment date and 
implementation of reasonably available control measures, among other 
requirements. Second, the EPA is approving the portions of the 
``Revised Proposed 2016 State Strategy for the State Implementation 
Plan'' (``2016 State Strategy'') related to the ozone control strategy 
for the San Joaquin Valley for the 2008 ozone standards, including a 
specific aggregate emissions reduction commitment. Lastly, the EPA is 
approving an air district rule addressing the emission statement 
requirement for ozone nonattainment areas.

DATES: This rule will be effective on March 14, 2019.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-R09-OAR-2018-0535. All documents in the docket are 
listed on the https://www.regulations.gov website. Although listed in 
the index, some information is not publicly available, e.g., 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Certain other material, such as 
copyrighted material, is not placed on the internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available through https://www.regulations.gov, or please 
contact the person identified in the FOR FURTHER INFORMATION CONTACT 
section for additional availability information.

FOR FURTHER INFORMATION CONTACT: Tom Kelly, EPA Region IX, (415) 972-
3856, [email protected].

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

Table of Contents

I. Summary of the Proposed Action
II. Public Comments
III. Final Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. Summary of the Proposed Action

    On August 31, 2018 (83 FR 44528), the EPA proposed to approve, 
under CAA section 110(k)(3), portions of submittals from the California 
Air Resources Board (CARB or ``State'') as revisions to the California 
SIP for the San Joaquin Valley 2008 ozone nonattainment area.\1\ The 
relevant SIP revisions include an emissions statement rule (Rule 1160), 
the 2016 Ozone Plan, and the 2016 State Strategy, which were submitted 
on January 11, 1993, August 24, 2016, and April 27, 2017, respectively. 
The San Joaquin Valley Air Pollution Control District (SJVUAPCD or 
``District'') adopted Rule 1160 (``Emission Statement'') on November 
18, 1992, to comply with the CAA's SIP revision requirement for 
emission statement rules. The 2016 State Strategy submittal consists of 
documents originating from the District (e.g., the 2016 Ozone Plan with 
Appendices and the District Governing Board Resolution) and from CARB 
(e.g., the CARB Staff Report and Appendices). The 2016 State Strategy 
includes CARB's commitments for rulemaking over the next several years 
and aggregate emission reduction commitments for the South Coast Air 
Basin and San Joaquin Valley. Each of these SIP revisions includes 
documentation of public notice, comment, and opportunity for public 
hearing prior to adoption by CARB or the District.
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    \1\ The San Joaquin Valley nonattainment area for the 2008 ozone 
standards generally covers the southern half of California's Central 
Valley and consists of San Joaquin, Stanislaus, Merced, Madera, 
Fresno, Tulare, and Kings counties, and the western portion of Kern 
County. A precise description of the San Joaquin Valley ozone 
nonattainment area is contained in 40 CFR 81.305.
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    In our August 31, 2018 proposed rule, we provided background 
material on the ozone standards,\2\ area designations, and related SIP 
revision requirements under the CAA, and the EPA's implementing 
regulations for the 2008 ozone standards, referred to as the SIP 
Requirements Rule (SRR). In short, the San Joaquin Valley nonattainment 
area is classified as Extreme for the 2008 ozone standards, and the 
2016 Ozone Plan was developed to address the requirements for this 
area. The 2016 Ozone Plan relies on District Rule 1160 to meet the CAA 
requirements for emissions statement rules and is supported by the 2016 
State Strategy, which includes commitments by CARB for rulemaking and 
for achievement of aggregate emission reductions of eight tons per day 
(tpd) of oxides of nitrogen (NOX) in the San Joaquin Valley 
by 2031

[[Page 3303]]

to accelerate progress towards meeting the 2008 ozone standards in that 
area.
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    \2\ Ground-level ozone pollution is formed from the reaction of 
volatile organic compounds (VOC) and oxides of nitrogen 
(NOX) in the presence of sunlight. The 2008 ozone 
standard is 0.075 parts per million (ppm) average over an 8-hour 
period. 73 FR 16436 (March 27, 2008).
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    In our proposed rule, we also discussed a 2018 Circuit Court 
decision issued by the D.C. Circuit in South Coast Air Quality 
Management Dist. v. EPA, (``South Coast II'') \3\ that vacated certain 
portions of our 2008 ozone SRR. We indicated that, in response to South 
Coast II, the EPA would be proposing action on certain elements of the 
2016 Ozone Plan (i.e., those elements affected by South Coast II) in a 
subsequent and separate rulemaking. These elements include the base 
year emissions inventory, the demonstration of reasonable further 
progress (RFP), the RFP motor vehicle emissions budgets, and the 
contingency measures. We proposed action on the SIP elements that are 
affected by South Coast II and that were not included in our August 31, 
2018 proposed rule at 83 FR 61346 (November 29, 2018).
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    \3\ South Coast Air Quality Management Dist. v. EPA, 882 F.3d 
1138 (D.C. Cir. 2018). The term ``South Coast II'' is used in 
reference to the 2018 court decision to distinguish it from a 
decision published in 2006 also referred to as ``South Coast.'' The 
earlier decision involved a challenge to the EPA's Phase 1 
implementation rule for the 1997 ozone standard. South Coast Air 
Quality Management Dist. v. EPA, 472 F.3d 882 (D.C. Cir. 2006).
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    For our August 31, 2018 proposed rule, we reviewed the various SIP 
elements contained in the 2016 Ozone Plan (i.e., except for those 
affected by South Coast II), District Rule 1160, and the relevant 
portions of the 2016 State Strategy, evaluated them for compliance with 
statutory and regulatory requirements, and concluded that they meet all 
applicable requirements. More specifically, we determined the 
following:
     The 2012 base year emission inventory from the 2016 Ozone 
Plan is comprehensive, accurate, and current, and that future year 
emissions inventories that are derived therefrom provide an acceptable 
basis for the attainment demonstration and vehicle miles traveled (VMT) 
offset demonstration in the 2016 Ozone Plan (see 83 FR 44531-44532 from 
the proposed rule);
     District Rule 1160 (``Emission Statements''), which 
requires, with certain allowable exceptions, all owners and operators 
of any stationary source category that emits or may emit volatile 
organic compounds (VOC) or NOX to provide a written 
statement on an annual basis showing actual emissions of VOC and 
NOX from that source, meets the requirements for emission 
statements under CAA section 182(a)(3)(B) for 2008 ozone nonattainment 
areas (see 83 FR 44532-44533 from the proposed rule);
     The process followed by the District to identify 
reasonably available control measures (RACM) is generally consistent 
with the EPA's recommendations and that the District's rules provide 
for the implementation of RACM for stationary and area sources of 
NOX and VOC; \4\ CARB and the metropolitan planning 
organizations provide for the implementation of RACM for mobile sources 
of NOX and VOC; that there are no additional RACM that would 
advance attainment of the 2008 ozone standards in the San Joaquin 
Valley by at least one year; and that, therefore, the 2016 Ozone Plan 
provides for the implementation of all RACM as required by CAA section 
172(c)(1) and 40 CFR 51.1112(c) for the 2008 ozone standards (see 83 FR 
44533-44535 from the proposed rule);
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    \4\ For our proposed action, we also considered our previous 
evaluations of the District's rules in connection with our approval 
of the San Joaquin Valley Reasonably Available Control Technology 
(RACT) SIP demonstration for the 2008 ozone standards. See 83 FR 
41006 (August 17, 2018).
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     The photochemical modeling in the 2016 Ozone Plan shows 
that existing CARB and District control measures are sufficient to 
attain the 2008 ozone standards by 2031 at all monitoring sites in the 
San Joaquin Valley; that, given the extensive discussion in the 2016 
Ozone Plan of modeling procedures, test and performance analyses called 
for in the modeling protocol and the good model performance, the 
modeling is adequate to support the attainment demonstration; and that, 
therefore, the 2016 Ozone Plan meets the attainment demonstration 
requirements of CAA section 182(c)(2)(A) and 40 CFR 51.1108 for the 
2008 ozone standards (see 83 FR 44535-44539 from the proposed rule);
     As provided in our SRR, the previously-approved 15 percent 
Rate-of-Progress (ROP) demonstration for the 1-hour ozone NAAQS for the 
San Joaquin Valley meets the ROP requirements of CAA section 182(b)(1) 
for the San Joaquin Valley for the 2008 ozone standards because the 
boundaries of the San Joaquin Valley nonattainment area for the 1-hour 
ozone standards and the 2008 ozone standards are the same (see 83 FR 
44539 from the proposed rule);
     The 2016 Ozone Plan (particularly, section D.3 (``VMT 
Offsets'') of appendix D (``Mobile Source Control Strategy'') 
demonstrates that CARB has adopted sufficient transportation control 
strategies (TCSs) to offset the growth in emissions from growth in VMT 
and vehicle trips in the San Joaquin Valley for the purposes of the 
2008 ozone standards and thereby complies with the VMT emissions offset 
requirement in CAA section 182(d)(1)(A) and 40 CFR 51.1102 (see 83 FR 
44540-44542 from the proposed rule);
     Through EPA-approved District Rules 2201 (``New and 
Modified Stationary Source Review''), 4306 (``Boilers, Steam 
Generators, and Process Heaters--Phase 3''), and 4352 (``Solid Fuel-
Fired Boilers, Steam Generators, and Process Heaters''), the 2016 Ozone 
Plan meets the clean fuels or advanced control technology for boilers 
requirement in CAA section 182(e)(3) and 40 CFR 51.1102 for the 2008 
ozone standards (see 83 FR 44543 from the proposed rule);
     The 2031 budgets from the 2016 Ozone Plan are consistent 
with the attainment demonstration, are clearly identified and precisely 
quantified, and meet all other applicable statutory and regulatory 
requirements, including the adequacy criteria in 40 CFR 93.118(e)(4) 
and (5) (see 83 FR 44543-44545 from the proposed rule); and
     The 2016 Ozone Plan adequately addresses the enhanced 
vehicle inspection and maintenance (I/M) requirements in CAA 182(c)(3) 
and 40 CFR 51.1102 and the enhanced ambient air monitoring requirements 
in CAA section 182(c)(1) and 40 CFR 51.1102 through previous EPA 
approvals of California's I/M program, Photochemical Assessment 
Monitoring Station network, and the most recent annual monitoring 
network plan for the San Joaquin Valley (see 83 FR 44545-44547 from the 
proposed rule).
    Finally, we proposed to approve two committal measures because they 
strengthen the SIP: (1) CARB's commitments, in the 2016 State Strategy 
and related resolution, to a rulemaking schedule and an aggregate 
emission reduction of eight tpd of NOX in the San Joaquin 
Valley by 2031, and (2) the District's commitments, in the 2016 Ozone 
Plan, to revise District Rules 4311 (``Flares'') and 4694 (``Wine 
Fermentation and Storage'') to include additional controls to the 
extent such controls are technologically achievable and economically 
feasible.
    Please see our August 31, 2018 proposed rule and the related 
Technical Support Document for more information concerning the 
background for this action and for a more detailed discussion of the 
rationale for approval of the above listed elements of the 2016 Ozone 
Plan, District Rule 1160, and the ozone-related commitments in the 2016 
State Strategy for San Joaquin Valley.

II. Public Comments

    The public comment period on the proposed rule opened on August 31,

[[Page 3304]]

2018, the date of its publication in the Federal Register, and closed 
on October 1, 2018. During this period, the EPA received two anonymous 
comments. One commenter expressed overall support for the proposed 
action. The second commenter raised issues that are outside the scope 
of this rulemaking, including forest management practices and the 
greenhouse gas emission impacts from wildfires. Such comments do not 
concern any of the specific issues raised in the proposal, nor do they 
address the EPA's rationale for the proposed action. Therefore, the EPA 
is not responding to these comments and is finalizing the action as 
proposed. All the comments received are included in the docket for this 
action.

III. Final Action

    For the reasons discussed in our proposed action and summarized 
above, the EPA is taking final action under CAA section 110(k)(3) to 
approve as a revision to the California SIP the following portions of 
the San Joaquin Valley 2016 Ozone Plan.\5\
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    \5\ The EPA has already approved the portions of the 2016 Ozone 
Plan (subchapter 3.4 (``Reasonably Available Control Technology 
(RACT) Demonstration'') and appendix C (``Stationary and Area Source 
Control Strategy Evaluations'') that relate to the RACT requirements 
under CAA section 182(b)(2) and 40 CFR 51.1112.
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     RACM demonstration as meeting the requirements of CAA 
section 172(c)(1) and 40 CFR 51.1112(c).
     ROP demonstration as meeting the requirements of CAA 
section 182(b)(1).
     Attainment demonstration as meeting the requirements of 
CAA section 182(c)(2)(A) and 40 CFR 51.1108.
     Enhanced monitoring as meeting the requirements of CAA 
section 182(c)(1) and 40 CFR 51.1102.
     Enhanced vehicle inspection and maintenance programs as 
meeting the requirements of CAA section 182(c)(3) and 40 CFR 51.1102.
     Provisions for clean fuels or advanced control technology 
for boilers as meeting the requirements of CAA section 182(e)(3) and 40 
CFR 51.1102.
     VMT emissions offset demonstration as meeting the 
requirements of CAA section 182(d)(1)(A) and 40 CFR 51.1102, and
     Motor vehicle emissions budgets for the attainment year of 
2031 because they are consistent with the attainment demonstration 
proposed for approval herein and meet the other criteria in 40 CFR 
93.118(e).\6\ The approved motor vehicle emissions budgets (in tpd, 
average summer weekday) are as follows:
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    \6\ On November 29, 2018 (83 FR 61346), the EPA proposed, among 
other things, to approve revised motor vehicle emissions budgets for 
year 2031 for San Joaquin Valley for the 2008 ozone standards. If we 
finalize the approval of the revised budgets as proposed, then the 
revised budgets will replace those that we are approving in today's 
action.

              Table 1--Motor Vehicle Budgets for 2031 (tpd)
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                        County                            VOC      NOX
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Fresno................................................      4.3     12.5
Kern (SJV)............................................      4.1     10.8
Kings.................................................      0.8      2.3
Madera................................................      0.9      2.0
Merced................................................      1.3      4.1
San Joaquin...........................................      3.3      5.5
Stanislaus............................................      2.0      4.7
Tulare................................................      1.9      3.7
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    In addition, we are taking final action to approve District Rule 
1160 titled ``Emission Statements'' as a revision to the California SIP 
because it meets all the applicable requirements for emission 
statements. We are also approving the Emission Statement section of the 
2016 Ozone Plan as meeting the requirements of CAA section 182(a)(3)(B) 
and 40 CFR 51.1102.
    Finally, we are taking final action to approve, as additional 
measures that strengthen the SIP, CARB's commitments in the 2016 State 
Strategy to a rulemaking schedule and an aggregate emission reduction 
of eight tpd of NOX by 2031 and District's commitments in 
the 2016 Ozone Plan to amend Rules 4311 (Flares) and 4694 (Wine 
Fermentation and Storage) to include additional controls to the extent 
such controls are technologically achievable and economically feasible.
    As discussed in the August 31, 2018 proposed rule, we are not 
taking final action at this time on the base year emissions inventory, 
the RFP demonstration, the motor vehicle emissions budgets for RFP 
milestone years, and the contingency measures portions of the 2016 
Ozone Plan. We proposed action on these remaining elements of the 2016 
Ozone Plan on November 29, 2018 (83 FR 61346).

IV. Incorporation by Reference

    In this action, the EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, the EPA is finalizing the incorporation by reference of a San 
Joaquin Valley Unified Air Pollution Control District rule (i.e., Rule 
1160) described in the amendments to 40 CFR part 52 set forth below. 
The EPA has made, and will continue to make, this document available 
through www.regulations.gov and at the EPA Region IX Office (please 
contact the person identified in the FOR FURTHER INFORMATION CONTACT 
section of this preamble for more information).

V. 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, the 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);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     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 the EPA with the discretionary authority 
to address, as appropriate, disproportionate human health or 
environmental effects, using

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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 the EPA or an Indian tribe 
has demonstrated that a tribe has jurisdiction. In those areas of 
Indian country, this final 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).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. The EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by April 15, 2019. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this action for the purposes of 
judicial review nor does it extend the time within which a petition for 
judicial review may be filed, and shall not postpone the effectiveness 
of such rule or action. This action may not be challenged later in 
proceedings to enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

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

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

    Dated: December 12, 2018.
Alexis Strauss,
Acting Regional Administrator, Region IX.

    Chapter I, title 40 of the Code of Federal Regulations is amended 
as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart F--California

0
2. Section 52.220 is amended by adding paragraphs (c)(191)(i)(E), 
(c)(496)(ii)(B)(2) and (3), and (c)(513) to read as follows:


Sec.  52.220  Identification of plan--in part.

* * * * *
    (c) * * *
    (191) * * *
    (i) * * *
    (E) San Joaquin Valley Unified Air Pollution Control District.
    (1) Rule 1160, ``Emission Statements,'' adopted on November 18, 
1992.
* * * * *
    (496) * * *
    (ii) * * *
    (B) * * *
    (2) Resolution 16-6-20, In the Matter of: Adopting the San Joaquin 
Valley Unified Air Pollution Control District 2016 Ozone Plan for the 
2008 8-Hour Ozone Standard, June 16, 2016, commitment to adopt, 
implement and submit measures committed to in the 2016 Ozone Plan for 
the 2008 8-Hour Ozone Standard, only.
    (3) 2016 Ozone Plan for 2008 8-Hour Ozone Standard, adopted June 
16, 2016, excluding subchapters 3.4 (``Reasonably Available Control 
Technology''), 3.11.1 (``Emission Inventory Requirements''), 6.3.2 
(``Reasonable Further Progress Requirements''), and 6.4 (``Contingency 
for Attainment''); appendix C (``Stationary and Area Source Control 
Strategy Evaluations''); and tables D-1 and D-4 through D-8 in 
attachment B (``San Joaquin Valley 8-Hr Ozone Motor Vehicle Emissions 
Budgets'') of appendix D (``Mobile Source Control Strategy'').
* * * * *
    (513) The following plan was submitted on April 27, 2017, by the 
Governor's designee.
    (i) [Reserved]
    (ii) Additional materials. (A) California Air Resources Board.
    (1) Resolution 17-7, 2016 State Strategy for the State 
Implementation Plan, March 23, 2017, commitments to a rulemaking 
schedule and to achieve aggregate emission reductions of 8 tons per day 
of NOX in San Joaquin Valley by 2031, and the rulemaking 
schedule included in attachment A to Resolution 17-7, only.
    (2) Revised Proposed 2016 State Strategy for the State 
Implementation Plan, adopted on March 23, 2017, except for the 
subchapter titled ``South Coast Commitment'' in chapter 3 (``Proposed 
SIP Commitment'').

[FR Doc. 2019-01686 Filed 2-11-19; 8:45 am]
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