[Federal Register Volume 85, Number 208 (Tuesday, October 27, 2020)]
[Proposed Rules]
[Pages 68029-68030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23225]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2020-0127; FRL-10015-74-Region 3]


Air Plan Approval; Maryland; Ozone Interprecursor Trading Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a state implementation plan (SIP) revision submitted by the 
State of Maryland. This revision pertains to the expansion in the use 
of Emission Reduction Credits (ERCs) when new or modified major 
stationary sources of ozone precursors are required to obtain emission 
offsets within the State of Maryland. This action is being taken under 
the Clean Air Act (CAA).

DATES: Written comments must be received on or before November 27, 
2020.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R03-
OAR-2020-0127 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 https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Cynthia Stahl, Permits Branch (3AD10), 
Air & Radiation Division, U.S. Environmental Protection Agency, Region 
III, 1650 Arch Street, Philadelphia, Pennsylvania 19103. The telephone 
number is (215) 814-2180. Ms. Stahl can also be reached via electronic 
mail at [email protected].

SUPPLEMENTARY INFORMATION: On January 31, 2020, the State of Maryland 
submitted a revision to its SIP to allow the use of interprecursor 
trading (IPT) within the state to satisfy the emission offset 
requirements for new or modified major stationary sources under the New 
Source Review (NSR) program pertaining to ground level ozone. Volatile 
Organic Compound (VOC) and Nitrogen Oxide (NOX) are ozone 
precursor pollutants. The Maryland SIP revisions would allow for new or 
modified major stationary sources seeking emission offsets to obtain 
either VOC or NOX offsets provided that these are obtained 
within Maryland and in an area designated with the same or greater 
stringency as the area in which the new or modified source is located.

I. Background

    The revision consists of amendments to Code of Maryland Regulations 
(COMAR) 26.11.17, Nonattainment Provisions for Major New Sources and 
Major Modifications, Sections .01, Definitions, and .04, Creating 
Emission Reduction Credits, Air Quality. The revision is applicable to 
major new sources and major modifications of sources whose potential 
VOC and/or NOX emissions trigger the emission offset 
requirements under COMAR 26.11.17. Maryland contains the Baltimore 
Ozone Nonattainment area but is also entirely within the Ozone 
Transport Region (OTR). The Clean Air Act requires that areas within 
the OTR must meet ozone nonattainment area requirements that would 
apply if they were classified as moderate ozone nonattainment areas. 
For both of these types of ozone nonattainment areas, in accordance 
with current requirements, sources would need to offset each ton of VOC 
or NOX with more than one ton of ERCs. This greater than 
one-for-one offset requirement would continue to apply under the 
Maryland IPT program.
    On December 6, 2018, EPA finalized its ozone implementation rule 
pertaining to the 2015 Ozone NAAQS (83 FR 62998). With this rule, among 
other provisions, EPA described a discretionary IPT program that would 
allow any new or modified major stationary source located in an ozone 
nonattainment area to satisfy the nonattainment NSR emission offset 
requirements for ozone with emission reductions from VOC or 
NOX, interchangeably. These requirements are codified at 40 
CFR 51.165(a)(11). Under this program, the IPT ratio, substantiated by 
EPA approved air quality modeling, is required to be established to 
ensure that an equivalent or greater air quality benefit is obtained to 
achieve reasonable further progress toward attainment of the ozone 
standard for the designated ozone nonattainment area.

II. Summary of SIP Revision and EPA Analysis

    Maryland's revision to COMAR 26.11.17.01 adds the definition for 
interprecursor trading, which includes a reference to the new COMAR 
26.11.17.04 regulation. Maryland's revision to COMAR 26.11.17.04 
pertains to its Nonattainment New Source Review (NNSR) program, which 
requires that facilities obtain ERCs. COMAR 26.11.17.04 requires that 
the facilities seeking the option of IPT must meet the current 
requirements for ERCs including those pertaining to location, 
determination of the amount of ERCs needed for the new source via the 
baseline to actual emissions calculations, and eligibility determined 
by the date of creation of the ERCs. COMAR 26.11.17.04 further 
specifies that the IPT ratio must be determined by an approved EPA air 
quality modeling methodology and the IPT ratio cannot be less than the 
emission offset ratio specified in COMAR 26.11.17.03B(3). The approving 
authority for the interprecursor trade is the Maryland Department of 
the Environment and such approval is granted on a case-by-case and a 
permit specific basis.
    EPA has reviewed the Maryland revisions to COMAR 26.11.17.01 and 
.04 and determined that they meet the EPA 2015 ozone implementation 
final rule published in the Federal Register at 83 FR 62998, December 
6, 2018.

III. Proposed Action

    EPA's review of this material indicates the Maryland amendments to 
COMAR 26.11.17.01 and .04, Air Quality: Nonattainment Provisions for 
Major New Sources and Major Modifications pertaining to

[[Page 68030]]

interprecursor trading meets the requirements at 40 CFR 51.165(a)(11). 
EPA is proposing to approve the Maryland Department of the 
Environment's SIP revision to add the definition of interprecursor 
trading to COMAR 26.11.17.01 and to add the requirements for the IPT 
program through COMAR 26.11.17.04. EPA is proposing to approve 
Maryland's NNSR IPT program, which was submitted on January 31, 2020. 
EPA is soliciting public comments on the issues discussed in this 
document. These comments will be considered before taking final action.

IV. Incorporation by Reference

    In this document, 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, EPA is proposing to incorporate by 
reference COMAR 26.11.17.01, effective on April 9, 2018, and COMAR 
26.11.17.04, effective on December 30, 2019 described in Sections II 
and III of this preamble. EPA has made, and will continue to make, 
these materials generally available through https://www.regulations.gov 
and at the EPA Region III 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 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 proposed 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 it is not a significant regulatory 
action 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 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, this proposed rulemaking, addressing the ozone 
interprecursor trading requirements in Maryland, does not have tribal 
implications as specified by Executive Order 13175 (65 FR 67249, 
November 9, 2000), because the SIP is not approved to apply in Indian 
country located in the State, and EPA notes that it will not impose 
substantial direct costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Nitrogen dioxide, Ozone, Volatile organic compounds.

    Dated: October 9, 2020.
Cosmo Servidio,
Regional Administrator, Region III.
[FR Doc. 2020-23225 Filed 10-26-20; 8:45 am]
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