[Federal Register Volume 84, Number 50 (Thursday, March 14, 2019)]
[Rules and Regulations]
[Pages 9240-9242]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04646]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2009-0226; FRL-9990-74-Region 4]


Air Plan Approval; GA: Emission Reduction Credits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve changes to the Georgia State Implementation Plan 
(SIP) to revise the emission reduction credits (ERC) regulation. EPA is 
approving portions of the SIP revision submitted by the State of 
Georgia, through the Georgia Department of Natural Resources' 
Environmental Protection Division (GA EPD) on September 15, 2008. The 
revision expands the eligibility for sources in Barrow County that can 
participate in the ERC Program, adds a provision for reevaluation of 
the Certificates of ERC, changes the administrative fees, and 
eliminates an exemption for certain types of ERCs. This action is being 
taken pursuant to the Clean Air Act (CAA or Act).

DATES: This rule is effective April 15, 2019.

ADDRESSES: EPA has established a docket for this action under Docket 
Identification No. EPA-R04-OAR-2009-0226. All documents in the docket 
are listed on the www.regulations.gov website. Although listed in the 
index, some information may not be publicly available, i.e., 
Confidential Business Information 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 either electronically through www.regulations.gov or in hard 
copy at the Air Regulatory Management Section, Air Planning and 
Implementation Branch, Air, Pesticides and Toxics Management Division, 
U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW, 
Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you 
contact the person listed in the FOR FURTHER INFORMATION CONTACT 
section to schedule your inspection. The Regional Office's official 
hours of business are Monday through Friday 8:30 a.m. to 4:30 p.m., 
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Madolyn Sanchez, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW, Atlanta, Georgia 
30303-8960. Ms. Sanchez can be reached via telephone at (404) 562-9644 
or via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    On September 15, 2008, GA EPD submitted a SIP revision to EPA for 
approval that involves changes to Georgia's emissions reduction credits 
rule and the administrative fees found in Georgia Rule 391-3-1-.03(13). 
Rule 391-3-1-.03(13) provides for the creation, banking, transfer, and 
use of nitrogen oxides (NOX) and volatile organic compounds 
(VOC) ERCs in Federally designated ozone nonattainment areas in Georgia 
and administrative fees associated with the ERC Program.
    GA EPD oversees the ERC Program, which was created in 1999 and 
approved into Georgia's SIP on July 10, 2001. See 66 FR 35906. The ERC 
Program facilitates construction permitting for major emission sources 
that are subject to nonattainment new source review (NNSR) permitting 
in Georgia ozone nonattainment areas. Emissions point sources within 
the 25-county area surrounding Atlanta that require Best Available 
Control Technology and offset permitting are also eligible for the ERC 
Program.
    The ERC Program allows eligible sources that voluntarily reduce 
emissions in the affected counties to certify and ``bank'' these 
reductions as ERCs for future use by themselves or others. The banked 
ERCs hold their value for ten years, at which point they begin 
devaluing ten percent per year until they have reached 50 percent of 
their original value. The ERC Program is intended to help the Atlanta 
area achieve compliance with federal standards for ground-level ozone. 
The ERC does not allow for any increase in emissions of NOX 
or VOC in the area to which it is applicable. In this action, EPA is 
approving the portion of Georgia's submission that makes changes to the 
applicability, discounting and revocation, and administrative fees 
sections of Rule 391-3-1-.03(13)--``Emission Reduction Credits.''

II. Analysis of State's Submittals

    The September 15, 2008, SIP revision involves changes to Georgia's 
Rule 391-3-1-.03--``Permits'' paragraph (13)(a), which modifies 
eligibility to participate in the ERC Program for stationary sources in 
Barrow County by removing Barrow County from the list of counties with 
sources eligible to create and bank NOX and VOC ERCs only 
for electric generating units that have the potential to emit 
NOX and VOC emissions in amounts greater than 100 tons per 
year (tpy), and adding Barrow County to the list of counties with 
sources eligible to create and bank NOX and VOC ERCs for any 
stationary source that has the potential to emit NOX and VOC 
emissions in amounts greater than 100 tpy. This change expands the 
universe of stationary sources in Barrow County that may voluntarily 
reduce NOX and VOC emissions and then credit those 
reductions at an equal or reduced rate against future emissions of 
those pollutants--thus incentivizing overall emissions reductions. 
Accordingly, EPA is approving this change as SIP strengthening.

[[Page 9241]]

    Under paragraph (13)(d), Georgia removes a provision that 
previously allowed ERCs created through the shutdown of individual 
process equipment to retain their value indefinitely. Like ERCs created 
through other methods, these ERCs will now retain their original value 
for ten years, at which point they will begin devaluing ten percent per 
year until they have reached 50 percent of their original value. EPA 
has concluded that the removal of this provision will strengthen 
Georgia's SIP because the change will decrease the value of these ERCs 
when they are used to offset emissions occurring more than ten years in 
the future, thus reducing overall emissions in areas where the Program 
is implemented. Accordingly, EPA is approving the revision to the 
Georgia SIP.
    Under paragraph (13)(d), Georgia adds a new provision that allows 
owners to re-evaluate certificates of ERCs to determine if credits 
specified in the certificate have been discounted or revoked in 
accordance with the requirements of Rule 391-3-1-.03(13)(d)1. EPA is 
approving this provision as consistent with section 110(a) of the CAA.
    Under paragraph (13)(h), Georgia revises the administrative fees 
for the ERC Program. EPA is approving this provision as consistent with 
section 110(a) of the CAA.
    EPA has concluded that these changes will not interfere with any 
applicable requirement concerning attainment and reasonable progress, 
nor any other applicable requirement of the CAA. EPA is therefore 
approving these changes to the Georgia SIP.\1\
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    \1\ Other portions of the September 15, 2008, submission were 
previously approved, and therefore, are not before EPA for 
consideration in this action. See 77 FR 59554 (September 28, 2012) 
and 79 FR 36218 (June 26, 2014).
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    On September 25, 2017 (82 FR 44543), EPA proposed to approve the 
above revisions to Georgia's SIP. The proposed rule accompanied a 
direct final rule published on the same day in the Federal Register. 
See 82 FR 44519. EPA received comments on the portion of the rulemaking 
regarding EPA's method of revision to the Georgia SIP table at 40 CFR 
52.570(c). Accordingly, EPA withdrew the direct final action. See 82 FR 
55511.

III. Response to Comment

    As stated previously, EPA received comments on the direct final 
rule. The comments are located in the docket for this action, and a 
summary of the comments and EPA's response is provided below.
    Comment: The Commenter does not challenge the substance of the 
State rule EPA has proposed to approve into Georgia's SIP. But the 
Commenter disagrees with EPA's method of revision to the Georgia SIP 
table at 40 CFR 52.570(c), arguing that EPA incorrectly updated the 
``State effective date'' column to September 11, 2008, for Georgia Rule 
391-3-1-03. The Commenter states that ``the table is supposed to 
identify the regulations that have been approved by EPA into the SIP, 
not simply identify the state-effective date of the version of the 
regulations that EPA acted on most recently.'' According to the 
Commenter, EPA's revision of the state effective date creates an 
impression of approving a different version of Rule 391-3-1-.03 than 
has actually been incorporated into the SIP.
    Response: EPA acknowledges that the September 25, 2017, rulemaking 
action's change to the Georgia SIP table entry for Rule 391-3-1-.03 may 
have created confusion. Accordingly, EPA has decided to revise the 
table to minimize confusion.

IV. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, EPA is finalizing the incorporation by reference of Georgia Rule 
391-3-1-.03(13)--``Emission Reduction Credits,'' state effective 
September 11, 2008.\2\ EPA has made, and will continue to make, these 
materials generally available through www.regulations.gov and/or at the 
EPA Region 4 Office (please contact the person identified in the ``For 
Further Information Contact'' section of this preamble for more 
information). Therefore, these materials have been approved by EPA for 
inclusion in the SIP, has been incorporated by reference by EPA into 
that plan, are fully federally enforceable under sections 110 and 113 
of the CAA as of the effective date of the final rulemaking of EPA's 
approval, and will be incorporated by reference by the Director of the 
Federal Register in the next update to the SIP compilation.\3\
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    \2\ The most recent state effective date for the version of 
Georgia Rule 391-3-1-.03(13) that EPA has approved, including the 
version of Rule 391-3-1-.03(13)(a), (d), and (h) that are the 
subject of this final action, is August 1, 2013. As a result, the 
table at 40 CFR 51.570(c) will reflect the state effective for Rule 
391-3-1-.03(13) as August 1, 2013, with the exception of subsection 
.03(13)(c) as noted in the Explanation column of the table. In 
addition, EPA is taking this opportunity to reformat the 
identification of the SIP-approved portions of Georgia Rule 391-3-
1-.03 in the table for ease of reference.
    \3\ See 62 FR 27968 (May 22, 1997).
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V. Final Action

    EPA is approving the aforementioned changes to the Georgia SIP 
emissions reduction credits rule and the administrative fees found in 
Georgia Rule 391-3-1-.03(13) submitted on September 15, 2008, because 
they are consistent with the CAA and its implementing regulations.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. See 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. 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 CAA; and
     Does not provide EPA with the discretionary authority to 
address, as

[[Page 9242]]

appropriate, disproportionate human health or environmental effects, 
using practicable and legally permissible methods, under Executive 
Order 12898 (59 FR 7629, February 16, 1994).
    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 as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.
    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. 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 CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by May 13, 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, Carbon monoxide, 
Incorporation by reference, Lead, Nitrogen dioxide, Ozone, Particulate 
matter, Sulfur oxides, Volatile organic compounds.

    Dated: February 28, 2019.
Mary S. Walker,
Acting Regional Administrator, Region 4.

    40 CFR part 52 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 L--Georgia

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2. In Sec.  52.570, the table in paragraph (c) is amended by:
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a. Adding an undesignated heading entitled ``Permits'' after the entry 
``391-3-1-.02(14)'';
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b. Revising the entry ``391-3-1-.03''; and
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c. Adding entries for ``391-3-1-.03(1)'' through ``391-3-1-.03(8)'' and 
``391-3-1-.03(11)'' through ``391-3-1-.03(13)''.
    The additions and revisions read as follows:


Sec.  52.570  Identification of plan.

* * * * *
    (c) * * *

                                        EPA-Approved Georgia Regulations
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                                                           State
         State citation               Title/subject      effective     EPA approval date        Explanation
                                                            date
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                                                     Permits
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391-3-1-.03:
    391-3-1-.03(1)..............  Construction (SIP)      8/17/1994  60 FR 45048, 8/30/    .....................
                                   Permit.                            1995
    391-3-1-.03(2)..............  Operating (SIP)        12/26/2001  67 FR 45909, 7/11/    With the exception of
                                   Permit.                            2002                  paragraph (e).
    391-3-1-.03(3)..............  Revocation,             2/23/1979  44 FR 54047, 9/18/    .....................
                                   Suspension,                        1979
                                   Modification or
                                   Amendment of
                                   Permits.
    391-3-1-.03(4)..............  Permits Not            11/20/1975  41 FR 35184, 8/20/    .....................
                                   Transferable.                      1976
    391-3-1-.03(5)..............  Permits Public         10/28/1992  61 FR 3819, 2/2/1996  .....................
                                   Records.
    391-3-1-.03(6)..............  Exemptions..........     8/9/2012  78 FR 21065, 4/9/     .....................
                                                                      2013
    391-3-1-.03(7)..............  Combined Permits and    2/23/1979  44 FR 54047, 9/18/    .....................
                                   Applications.                      1979
    391-3-1-.03(8)..............  Permit Requirements.     8/1/2013  82 FR 47993, 10/16/   Paragraph (g) is the
                                                                      2017                  version that was
                                                                                            state- effective 9/
                                                                                            13/2011.
    391-3-1-.03(11).............  Permit by Rule......    7/20/2005  75 FR 6309, 2/9/2010  .....................
    391-3-1-.03(12).............  Generic Permit......    8/17/1994  60 FR 45048, 8/30/    .....................
                                                                      1995
    391-3-1-.03(13).............  Emission Reduction      9/11/2008  3/14/2019, [Insert    Except subparagraph
                                   Credits.                           citation of           391-3-1-.03(13)(f),
                                                                      publication]          which was approved
                                                                                            into the SIP with a
                                                                                            state-effective date
                                                                                            of 7/18/2001, and
                                                                                            subparagraphs (b),
                                                                                            (c), (e), (g), and
                                                                                            (i), which were
                                                                                            approved into the
                                                                                            SIP with a state-
                                                                                            effective date of 2/
                                                                                            16/2000.
 
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[FR Doc. 2019-04646 Filed 3-13-19; 8:45 am]
BILLING CODE 6560-50-P