[Federal Register Volume 87, Number 246 (Friday, December 23, 2022)]
[Proposed Rules]
[Pages 79176-79212]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-27557]



[[Page 79175]]

Vol. 87

Friday,

No. 246

December 23, 2022

Part III





 Environmental Protection Agency





-----------------------------------------------------------------------





40 CFR Part 60





Adoption and Submittal of State Plans for Designated Facilities: 
Implementing Regulations Under Clean Air Act Section 111(d); Proposed 
Rule

  Federal Register / Vol. 87 , No. 246 / Friday, December 23, 2022 / 
Proposed Rules  

[[Page 79176]]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2021-0527; FRL-8606-02-OAR]
RIN 2060-AV48


Adoption and Submittal of State Plans for Designated Facilities: 
Implementing Regulations Under Clean Air Act Section 111(d)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: This action proposes amendments to the implementing 
regulations that govern the processes and timelines for state and 
Federal plans that implement emission guidelines under Clean Air Act 
(CAA) section 111(d). The proposed amendments include revisions to the 
timing requirements for state plan submittal, the Environmental 
Protection Agency (EPA)'s action on state plan submissions, the EPA's 
promulgation of a Federal plan, and for when states must establish 
increments of progress. These proposed amendments address the vacatur 
of certain timing requirements by the United States Court of Appeals 
for the District of Columbia Circuit (D.C. Circuit) in American Lung 
Association. v. EPA. The EPA is also proposing to add regulatory 
mechanisms to improve flexibility and efficiency in the submission, 
review, approval, revision, and implementation of state plans. This 
action further proposes new requirements for meaningful engagement with 
pertinent stakeholders as part of state plan development, including, 
but not limited to, industry, small businesses, and communities most 
affected by and vulnerable to the impacts of the plan. This action 
additionally proposes clarifying requirements for states' consideration 
of `remaining useful life and other factors' (RULOF) in applying a 
standard of performance. This action proposes to amend the definition 
of standard of performance and provide clarification associated with 
CAA section 111(d) compliance flexibilities, including trading or 
averaging. Finally, this action proposes requirements for the 
electronic submission of state plans and several other clarifications 
and minor revisions.

DATES: 
    Comments. Comments must be received on or before February 27, 2023.
    Public hearing: The EPA will hold a virtual public hearing on 
January 24, 2023. See SUPPLEMENTARY INFORMATION for additional 
information on the hearing.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2021-0527, by any of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov/ 
(our preferred method). Follow the online instructions for submitting 
comments.
     Email: [email protected]. Include Docket ID No. EPA-
HQ-OAR-2021-0527 in the subject line of the message.
     Fax: (202) 566-9744. Attention Docket ID No. EPA-HQ-OAR-
2021-0527.
     Mail: U.S. Environmental Protection Agency, EPA Docket 
Center, Docket ID No. EPA-HQ-OAR-2021-0527, Mail Code 28221T, 1200 
Pennsylvania Avenue NW, Washington, DC 20460.
     Hand/Courier Delivery: EPA Docket Center, WJC West 
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. 
The Docket Center's hours of operation are 8:30 a.m.-4:30 p.m., Monday-
Friday (except Federal holidays).
    Instructions: All submissions received must include the Docket ID 
No. for this rulemaking. Comments received may be posted without change 
to https://www.regulations.gov/, including any personal information 
provided. For detailed instructions on sending comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: For questions about this proposed 
action, contact Dr. Michelle Bergin, Sector Policies and Programs 
Division (Mail Code D205-01), Office of Air Quality Planning and 
Standards, U.S. Environmental Protection Agency, Research Triangle 
Park, North Carolina 27711; telephone number: (919) 541-2627; fax 
number: (919) 541-4991; and email address: [email protected].

SUPPLEMENTARY INFORMATION: 
    Participation in virtual public hearing. The public hearing will be 
held via virtual platform on January 24, 2023, and will convene at 11 
a.m. Eastern Time (ET) and conclude at 7 p.m. ET. If the EPA receives a 
high volume of registrations for the public hearing, we may continue 
the public hearing on January 25, 2023. On each hearing day, the EPA 
may close a session 15 minutes after the last pre-registered speaker 
has testified if there are no additional speakers. The EPA will 
announce any further details at https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr.
    Upon publication of this document in the Federal Register, the EPA 
will begin pre-registering speakers for the hearing. The EPA will 
accept registrations on an individual basis. To register to speak at 
the virtual hearing, please use the online registration form available 
at https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr or contact the 
public hearing team at (888) 372-8699 or by email at 
[email protected]. The last day to pre-register to speak at the 
hearing will be January 19, 2023. Prior to the hearing, the EPA will 
post a general agenda that will list pre-registered speakers in 
approximate order at: https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr.
    The EPA will make every effort to follow the schedule as closely as 
possible on the day of the hearing; however, please plan for the 
hearings to run either ahead of schedule or behind schedule.
    Each commenter will have 4 minutes to provide oral testimony. The 
EPA encourages commenters to submit a copy of their oral testimony as 
written comments to the rulemaking docket.
    The EPA may ask clarifying questions during the oral presentations 
but will not respond to the presentations at that time. Written 
statements and supporting information submitted during the comment 
period will be considered with the same weight as oral testimony and 
supporting information presented at the public hearing.
    The EPA does not intend to publish a document in the Federal 
Register announcing updates. While the EPA expects the hearing to go 
forward as described in this section, please monitor https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr for any updates to the 
information described in this document, including information about the 
public hearing, or contact the public hearing team at (888) 372-8699 or 
by email at [email protected].
    If you require the services of a translator or a special 
accommodation such as audio description, please pre-register for the 
hearing with the public hearing team and describe your needs by January 
9, 2023. The EPA may not be able to arrange accommodations without 
advanced notice.
    Docket. The EPA has established a docket for this rulemaking under 
Docket ID No. EPA-HQ-OAR-2021-0527. All

[[Page 79177]]

documents in the docket are listed in the Regulations.gov index. 
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. Publicly available 
docket materials are available either electronically in Regulations.gov 
or in hard copy at the EPA Docket Center, Room 3334, WJC West Building, 
1301 Constitution Avenue NW, Washington, DC. The Public Reading Room is 
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays. The telephone number for the Public Reading Room is 
(202) 566-1744, and the telephone number for the EPA Docket Center is 
(202) 566-1742.
    Instructions. Direct your comments to Docket ID No. EPA-HQ-OAR-
2021-0527. The EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at http://www.regulations.gov, including any personal 
information provided, unless the comment includes information claimed 
to be CBI or other information whose disclosure is restricted by 
statute. Do not submit electronically through https://www.regulations.gov/ any information that you consider to be CBI or 
other information whose disclosure is restricted by statute. See 
Submitting CBI for instructions for submitting this type of 
information.
    The EPA may publish any comment received to its public docket. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e., on the Web, cloud, or other 
file sharing system). For additional submission methods, 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.
    The http://www.regulations.gov/ website allows you to submit your 
comment anonymously, which means the EPA will not know your identity or 
contact information unless you provide it in the body of your comment. 
If you send an email comment directly to the EPA without going through 
https://www.regulations.gov/, your email address will be automatically 
captured and included as part of the comment that is placed in the 
public docket and made available on the internet. If you submit an 
electronic comment, the EPA recommends that you include your name and 
other contact information in the body of your comment and with any 
digital storage media you submit. If the EPA cannot read your comment 
due to technical difficulties and cannot contact you for clarification, 
the EPA may not be able to consider your comment. Electronic files 
should not include special characters or any form of encryption and be 
free of any defects or viruses. For additional information about the 
EPA's public docket, visit the EPA Docket Center homepage at https://www.epa.gov/dockets.
    Throughout this proposal, the EPA is soliciting comment on numerous 
aspects of the proposed rulemaking. The EPA has indexed each explicit 
comment solicitation with an alpha-numeric identifier (e.g., ``C-1'', 
``C-2'', ``C-3'', . . .) to provide a framework for effective and 
efficient provision of comments. The EPA asks that commenters include 
the corresponding identifier when providing comments relevant to that 
solicitation in either a heading, or within the text of each comment 
(e.g., ``In response to solicitation of comment C-1, . . .'') to make 
clear which comment solicitation is being addressed. The identifiers 
are helpful to the Agency for purposes of organizing its responses, but 
do not necessarily comprise an exhaustive index of issues on which the 
EPA is soliciting comment and which the public may address in their 
comments. The EPA is soliciting comment on the issues described in this 
proposal.
    Submitting CBI. Do not submit information containing CBI to the EPA 
through https://www.regulations.gov/. Clearly mark the part or all of 
the information that you claim to be CBI. For CBI information on any 
digital storage media that you mail to the EPA, mark the outside of the 
digital storage media as CBI, note the docket ID, and then identify 
electronically within the digital storage media the specific 
information that is claimed as CBI. In addition to one complete version 
of the comments that includes information claimed as CBI, you must 
submit a copy of the comments that does not contain the information 
claimed as CBI directly to the public docket through the procedures 
outlined in Instructions section of this document. If you submit any 
digital storage media that does not contain CBI, mark the outside of 
the digital storage media clearly that it does not contain CBI and note 
the docket ID. Information not marked as CBI will be included in the 
public docket and the EPA's electronic public docket without prior 
notice. Information marked as CBI will not be disclosed except in 
accordance with procedures set forth in 40 CFR part 2.
    Our preferred method to receive CBI is for it to be transmitted 
electronically using email attachments, File Transfer Protocol (FTP), 
or other online file sharing services (e.g., Dropbox, OneDrive, Google 
Drive). Electronic submissions must be transmitted directly to the 
OAQPS CBI Office using the email address, [email protected], and should 
include clear CBI markings and note the docket ID, as described above. 
If assistance is needed with submitting large electronic files that 
exceed the file size limit for email attachments, and if you do not 
have your own file sharing service, please email [email protected] to 
request a file transfer link. If sending CBI information through the 
postal service, please send it to the following address: OAQPS Document 
Control Officer (C404-02), OAQPS, U.S. Environmental Protection Agency, 
Research Triangle Park, North Carolina 27711, Attention Docket ID No. 
EPA-HQ-OAR-2021-0527. The mailed CBI material should be double wrapped 
and clearly marked. Any CBI markings should not show through the outer 
envelope.
    Preamble acronyms and abbreviations. We use multiple acronyms and 
terms in this preamble. While this list may not be exhaustive, to ease 
the reading of this preamble and for reference purposes, the EPA 
defines the following terms and acronyms here:

ACE Affordable Clean Energy Rule
ALA American Lung Association
BSER Best System of Emission Reduction
CAA Clean Air Act
CBI confidential business information
CDC Centers for Disease Control and Prevention
CDX Central Data Exchange
CFR Code of Federal Regulations
EG Emission Guideline
EGU electric generating unit
EPA Environmental Protection Agency
FIP Federal Implementation Plan
ICR Information Collection Request
NAAQS National Ambient Air Quality Standards
OAQPS Office of Air Quality Planning and Standards
OMB Office of Management and Budget
PRA Paperwork Reduction Act
PM2.5 fine particulate matter
RFA Regulatory Flexibility Act
RIN Regulatory Information Number
RULOF remaining useful life and other factors
SIP State Implementation Plan
SPeCS State Planning Electronic Collaboration System

[[Page 79178]]

SSM startup, shutdown, and malfunctions
TAR Tribal Authority Rule
TIP Tribal Implementation Plan
UMRA Unfunded Mandates Reform Act
U.S.C. United States Code

    Organization of this document. The information in this preamble is 
organized as follows:

I. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
II. Background
    A. What is the statutory authority for this action?
    B. What is the background for this action?
III. What actions are we proposing?
    A. Revised Implementing Timelines
    B. Federal Plan Authority and Timeline Upon Failure To Submit a 
Plan
    C. Requirement for Outreach and Meaningful Engagement
    D. Regulatory Mechanisms for State Plan Implementation
    E. Remaining Useful Life and Other Factors (RULOF) Provisions
    F. Provision for Electronic Submission of State Plans
    G. Other Proposed Modifications and Clarifications
IV. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act (NTTAA)
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Determination Under Section CAA 307(d)

I. General Information

A. Does this action apply to me?

    This action applies to states in the development and submittal of 
state plans pursuant to CAA section 111(d), and to the EPA in 
promulgating a Federal plan pursuant to CAA section 111(d). After the 
EPA promulgates a final emission guideline (EG), each state that has 
one or more designated facilities must develop, adopt, and submit to 
the EPA, a state plan under CAA section 111(d). The term ``designated 
facility'' means ``any existing facility . . . which emits a designated 
pollutant and which would be subject to a standard of performance for 
that pollutant if the existing facility were an affected facility.'' 
See 40 CFR 60.21a(b). If a state fails to submit a plan or the EPA 
determines that a state plan is not satisfactory, the EPA has the 
authority to establish a Federal CAA section 111(d) plan in such 
instances.
    Under the Tribal Authority Rule (TAR), eligible tribes may seek 
approval to implement a plan under CAA section 111(d) in a manner 
similar to a state. See 40 CFR part 49, subpart A. Tribes may, but are 
not required to, seek approval for treatment in a manner similar to a 
state for purposes of developing a Tribal Implementation Plan (TIP) 
implementing an EG. If a tribe obtains approval and submits a TIP, the 
EPA will use similar timelines and criteria and will follow similar 
procedures as those for state plans. Tribes that choose to develop 
plans will have the same flexibilities available to states in this 
process. The TAR authorizes tribes to submit CAA programs; however, it 
does not require tribes to develop CAA programs. Tribes may implement 
those programs, or even portions of programs, that are most relevant to 
the air quality needs of tribes. If a tribe does not seek and obtain 
the authority from the EPA to establish a TIP, the EPA has the 
authority to establish a Federal CAA section 111(d) plan for designated 
facilities that are located in areas of Indian country. A Federal plan 
would apply to all designated facilities located in the areas of Indian 
country covered by the Federal plan unless and until the EPA approves a 
TIP applicable to those facilities.

B. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this action is available on the internet. Following signature by the 
EPA Administrator, the EPA will post a copy of this proposed action at 
https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr. Following 
publication in the Federal Register, the EPA will post the Federal 
Register version of the proposal and key technical documents at this 
same website.
    A memorandum showing the rule edits that would be necessary to 
incorporate the changes to 40 CFR part 60 subpart Ba proposed in this 
action is available in the docket (Docket ID No. EPA-HQ-OAR-2021-0527). 
Following signature by the EPA Administrator, the EPA also will post a 
copy of this document to https://www.epa.gov/stationary-sources-air-pollution/adoption-and-submittal-state-plans-designated-facilities-40-cfr.

II. Background

A. What is the statutory authority for this action?

    The statutory authority for this action is provided by sections 301 
and 111 of the CAA (42 U.S.C. 7411 and 7601). Section 301 of the CAA 
contains general provisions for the administration of the CAA. As 
described further in the next section, CAA section 111 requires the EPA 
to establish emission standards for certain stationary sources that, in 
the Administrator's judgment, ``cause[ ], or contribute[ ] 
significantly to, air pollution which may reasonably be anticipated to 
endanger public health or welfare.'' CAA section 111(b) provides the 
EPA's authority to regulate new and modified sources, while CAA section 
111(d) directs the EPA to ``prescribe regulations which shall establish 
a procedure'' for states to establish standards for existing sources of 
certain air pollutants to which a standard of performance would apply 
if such existing source were a new source. The EPA addresses its 
obligation under CAA section 111(d) to establish a procedure for states 
to submit plans both through its promulgation of the general 
implementing regulations addressed by this action as well as through 
promulgation of EGs for specific source categories.

B. What is the background for this action?

    Clean Air Act section 111(d) governs the establishment of standards 
of performance for existing stationary sources. CAA section 111(d) 
directs the EPA to ``prescribe regulations which shall establish a 
procedure similar to that provided by [CAA section 110]'' for states to 
submit state plans to establish standards of performance for existing 
sources of certain air pollutants to which a standard of performance 
would apply if such an existing source were a new source under CAA 
section 111(b). Therefore, an existing source can only be regulated 
under CAA section 111(d) if it belongs to a source category that is 
regulated under CAA section 111(b). The EPA's implementing regulations 
use the term ``designated facility'' to identify those existing 
sources. See 40 CFR 60.21a(b).
    CAA section 111(b)(1)(A) requires that a source category be 
included on the list for regulation if, ``in [the EPA

[[Page 79179]]

Administrator's] judgment it causes, or contributes significantly to, 
air pollution which may reasonably be anticipated to endanger public 
health or welfare.'' Once a source category is listed, CAA section 
111(b)(1)(B) requires that the EPA propose and then promulgate 
``standards of performance'' for new sources in such source category. 
CAA section 111(a)(1) defines a ``standard of performance'' as ``a 
standard for emissions of air pollutants which reflects the degree of 
emission limitation achievable through the application of the best 
system of emission reduction which (taking into account the cost of 
achieving such reduction and any non-air quality health and 
environmental impact and energy requirements) the Administrator 
determines has been adequately demonstrated.'' This provision requires 
the EPA to determine both the best system of emission reduction (BSER) 
for the regulated source category and the degree of emission limitation 
achievable through application of the BSER. The EPA must then, under 
CAA section 111(b)(1)(B), promulgate standards of performance for new 
sources that reflect that level of stringency.
    Once the EPA promulgates standards of performance for new sources 
within a particular source category, the EPA is required, in certain 
circumstances, to regulate emissions from designated (existing) 
facilities in that same source category.\1\ Under CAA section 111(d), 
the Agency has, to date, issued EGs regulating five pollutants from six 
source categories that remain in effect (i.e., sulfuric acid plants 
(acid mist), phosphate fertilizer plants (fluorides), primary aluminum 
plants (fluorides), kraft pulp plants (total reduced sulfur), municipal 
solid waste landfills (landfill gases)), and fossil-fuel fired electric 
generating units (carbon dioxide). See ``Phosphate Fertilizer Plants; 
Final Guideline Document Availability,'' 42 FR 12022 (March 1, 1977); 
``Standards of Performance for New Stationary Sources; Emission 
Guideline for Sulfuric Acid Mist,'' 42 FR 55796 (October 18, 1977); 
``Kraft Pulp Mills, Notice of Availability of Final Guideline 
Document,'' 44 FR 29828 (May 22, 1979); ``Primary Aluminum Plants; 
Availability of Final Guideline Document,'' 45 FR 26294 (April 17, 
1980); ``Emission Guidelines and Compliance Times for Municipal Solid 
Waste Landfills,'' 81 FR 59276 (August 29, 2016); ``Repeal of the Clean 
Power Plan; Emission Guidelines for Greenhouse Gas Emissions From 
Existing Electric Utility Generating Units; Revisions to Emission 
Guidelines Implementing Regulations,'' 84 FR 32520 (July 8, 2019) 
(Affordable Clean Energy (ACE) Rule).2 3 On November 15, 
2021, the EPA proposed EGs to regulate greenhouse gas emissions (in the 
form of methane limitations) from sources in the oil and natural gas 
industry. 86 FR 63110. In addition, the Agency has regulated additional 
pollutants for solid waste incineration units under CAA section 129 in 
accordance with CAA section 111(d).\4\
---------------------------------------------------------------------------

    \1\ In accordance with CAA section 111(d), states are required 
to submit plans pursuant to these regulations to establish standards 
of performance for existing sources for any air pollutant: (1) the 
emission of which is subject to a Federal New Source Performance 
Standard; and (2) which is neither a pollutant regulated under CAA 
section 108(a) (i.e., criteria air pollutants such as ground-level 
ozone and particulate matter, and their precursors, like volatile 
organic compound) or a hazardous air pollutant regulated [from the 
same source category] under CAA section 112. See also definition of 
``designated pollutant'' in 40 CFR 60.21a(a).
    \2\ The EPA has also issued several EGs that have subsequently 
been repealed or vacated by the courts. The EPA regulated mercury 
from coal-fired electric power plants in a 2005 rule that was 
vacated by the D.C. Circuit, ``Standards of Performance for New and 
Existing Stationary Sources: Electric Utility Steam Generating 
Units; Final Rule,'' 70 FR 28606 (May 18, 2005) (Clean Air Mercury 
Rule), vacated by New Jersey v. EPA, 517 F.3d 574 (D.C. Cir. 2008). 
The EPA also issued CAA section 111(d) EGs regulating GHG emissions 
from fossil fuel-fired electric power plants in a 2015 rule ``Carbon 
Pollution Emission Guidelines for Existing Stationary Sources: 
Electric Utility Generating Units; Final Rule,'' 80 FR 64662 
(October 23, 2015) (Clean Power Plan). The EPA subsequently repealed 
and replaced the 2015 rule with the ACE Rule.
    \3\ The ACE Rule was initially vacated by Am. Lung Ass'n v. EPA, 
985 F.3d 914 (D.C. Cir. 2021). The Supreme Court subsequently 
reversed and remanded the D.C. Circuit's opinion, West Virginia v. 
EPA, 142 S. Ct. 2587 (June 30, 2022). On October 27, 2022, the D.C. 
Circuit amended its judgement and recalled the partial mandate 
vacating the ACE Rule, effectively reinstating ACE. Order, ALA v. 
EPA, No. 19-1140, ECF No. 1970895.
    \4\ CAA Section 129 directs the EPA Administrator to develop 
regulations under CAA section 111 limiting emissions of nine air 
pollutants from four categories of solid waste incineration units.
---------------------------------------------------------------------------

    The mechanism for regulating designated facilities under CAA 
section 111(d) differs from the mechanism for regulating new facilities 
under CAA section 111(b). Pursuant CAA section 111(b), the EPA 
promulgates standards of performance that are directly applicable to 
new, modified, and reconstructed facilities in a specified source 
category. In contrast, CAA section 111(d) operates together with CAA 
section 111(a)(1) to collectively establish and define roles and 
responsibilities for both the EPA and the states in the regulation of 
designated facilities. Under the regulatory framework for designated 
facilities, states are authorized to establish standards of 
performance. However, such standards of performance must reflect the 
degree of emission limitation achievable through the application of the 
BSER \5\ that the EPA has determined for the designated facilities in 
the source category. As with standards of performance under CAA section 
111(b), the requirement for the EPA to determine the BSER derives from 
the definition of ``standard of performance'' under CAA section 
111(a)(1). Further, CAA section 111(d)(1) requires the EPA's 
regulations to permit states, in applying a standard of performance to 
particular sources, to take into account the source's remaining useful 
life and other factors, a process addressed in more detail in section 
III.E of this preamble.
---------------------------------------------------------------------------

    \5\ In this proposal, the EPA is also referring to ``the degree 
of emission limitation achievable through application of the BSER'' 
as the presumptive level of stringency.
---------------------------------------------------------------------------

    The EPA addresses its obligation under CAA section 111(d) to 
establish a procedure for states to submit plans both through its 
promulgation of general implementing regulations for section 111(d) as 
well as through promulgation of EGs for specific source categories. 
While CAA section 111(d)(1) authorizes states to develop state plans 
that establish standards of performance and provides states with 
certain discretion in determining the appropriate standards, CAA 
section 111(d)(2) provides the EPA a specific oversight role with 
respect to such state plans. This latter provision authorizes the EPA 
to prescribe a Federal plan for a state ``in cases where the state 
fails to submit a satisfactory plan.'' The states must therefore submit 
their plans to the EPA, and the EPA must evaluate each state plan to 
determine whether each plan is ``satisfactory.'' If a state fails to 
submit a plan or the EPA determines that a state plan is not 
satisfactory, CAA section 111(d)(2) gives the EPA the ``same 
authority'' to prescribe a Federal plan in such instances as it has to 
promulgate a Federal Implementation Plan (FIP) under CAA section 
110(c).
    In 1975, the EPA issued the first general implementing regulations 
to prescribe the process for the adoption and submittal of state plans 
for designated facilities under CAA section 111(d) (codified at 40 CFR 
part 60, subpart B (subpart B)). 40 FR 53340 (November 17, 1975). 
Responding to the direction to ``establish a procedure similar to that 
provided by'' CAA section 110, in promulgating subpart B the EPA 
aligned the timing requirements for state and Federal plans under CAA 
section 111(d) with the then-applicable timeframes for State

[[Page 79180]]

Implementation Plans (SIPs) and FIPs prescribed in CAA section 110, as 
established by the 1970 CAA Amendments. The implementing regulations 
were not significantly revised after their original promulgation in 
1975 \6\ until 2019, when the EPA promulgated a new set of implementing 
regulations codified at 40 CFR part 60, subpart Ba. 84 FR 32520 (July 
8, 2019) (subpart Ba).
---------------------------------------------------------------------------

    \6\ In 2012, the EPA revised several provisions of subpart B, 
mainly to include allowance systems as a form of an emission 
standard. 77 FR 9303 (February 16, 2012).
---------------------------------------------------------------------------

    In promulgating subpart Ba in 2019, the EPA intended to update and 
modernize the implementing regulations to align the procedures for CAA 
section 111(d) state and Federal plans with CAA amendments made after 
subpart B was first promulgated in 1975. Notably, subpart B did not 
align either with CAA section 111(d) as amended by Congress in 1977 or 
with the timelines in CAA section 110 as amended by Congress in 1990. 
The EPA therefore considered it appropriate to update the implementing 
regulations for CAA section 111(d) to mirror changes to CAA section 
110, given that section 111(d)(1) of the CAA directs the EPA to 
``prescribe regulations which shall establish a procedure similar to 
that provided by section 110'' of the CAA for states to submit plans to 
the EPA. In promulgating subpart Ba, the EPA directly aligned the 
timing requirements for CAA section 111(d) state and Federal plans (40 
CFR 60.23a(a)(1) and 60.27a(c), respectively) with the timing 
requirements for SIPs and FIPs under CAA section 110 (see CAA section 
110(a)(1) and 110(c)(1), respectively).
    In promulgating subpart Ba, the EPA also added the definition of 
``standard of performance'' (40 CFR 60.21a(f)) (defined under subpart B 
as ``emission standard'' (40 CFR 60.21(f))) and the remaining useful 
life provision (40 CFR 60.24a(e)) (referred under subpart B as the 
variance provision (40 CFR 60.24(d))). The EPA further added required 
minimum administrative and technical criteria for inclusion by state 
plans (40 CFR 60.27a(g)). Applying these criteria, the EPA determines 
whether a state plan or portion of a plan submitted is complete 
(referred to as a completeness review). Once a state plan or portion of 
a plan is determined to be complete, the EPA will approve or disapprove 
the plan or portions of the plan. For details on the EPA's rationale 
for the promulgation of these provisions see 84 FR 32520 (July 8, 
2019).
    Subpart Ba is applicable to any final EG published or ongoing after 
July 8, 2019. However, in this action, the EPA is proposing to amend 
subpart Ba to be applicable only to any final EG published after July 
8, 2019 (see section III.G.2.i of this preamble). This includes, if 
finalized, the proposed EGs to regulate greenhouse gas emissions from 
sources in the oil and natural gas industry, to the extent the final EG 
does not contain EG-specific requirements superseding subpart Ba. 86 FR 
63110, November 15, 2021. Subpart B (pre-2019) continues to apply to 
EGs promulgated prior to July 8, 2019, and to EGs issued pursuant to 
CAA section 129.
    In January 2021, the D.C. Circuit vacated several provisions of 
subpart Ba, all of which relate to timelines for state plans and 
Federal plans. Am. Lung Ass'n v. EPA, 985 F.3d 914, 991. (D.C. Cir. 
2021) (ALA).\7\ In this vacatur, the court identified several flaws in 
the EPA's rationale for extending CAA section 111(d) state and Federal 
plan timelines. First, the court found that the EPA erred in adopting 
the timelines for SIPs and FIPs in CAA section 110 without meaningfully 
addressing the differences in the scale of effort required for 
development and evaluation of CAA section 110 SIPs, as compared with 
the scale of effort needed for CAA section 111(d) state plans. Id. at 
992-93. The court also concluded that in promulgating the timelines in 
subpart Ba, the EPA failed to justify why the shorter deadlines under 
subpart B were unworkable. Id. at 993. Further, the court held that the 
EPA was required to consider the effect of its subpart Ba timelines on 
public health and welfare, consistent with the statutory purpose of CAA 
section 111(d). In the court's view, the EPA's ``complete failure to 
say anything at all about the public health and welfare implications of 
the extended timeframes'' meant that the EPA failed to consider an 
important aspect of the problem. Id. at 992 (citing Motor Vehicle Mfrs. 
Ass'n of U.S., Inc. v. State Farm Mut. Auto. Ins. Co. 463 U.S. 29, 43 
(1983)).
---------------------------------------------------------------------------

    \7\ The Supreme Court subsequently reversed and remanded the 
D.C. Circuit's opinion. West Virginia v. EPA, 142 S.Ct. 2587 (June 
30, 2022). However, no Petitioner sought certiorari on, and the West 
Virginia decision did not implicate, the D.C. Circuit's vacatur of 
portions of subpart Ba. See Amended Judgment, ALA v. EPA, No. 19-
1140 (D.C. Cir. October 27, 2022), ECF No. 1970898 (ordering that 
petitions for review challenging the timing portion of implementing 
regulations be granted).
---------------------------------------------------------------------------

    Based on these reasons, the court vacated the timeline for state 
plan submissions after publication of a final EG (40 CFR 60.23a(a)(1)), 
the EPA's deadline for taking action on state plan submissions (40 CFR 
60.27a(b)), the EPA's deadline for promulgating a Federal plan (40 CFR 
60.27a(c)), and the timeline associated with requirements for 
increments of progress (40 CFR 60.24a(d)). Because of the vacatur, 
subpart Ba currently does not provide generally applicable timelines 
for state plan submissions, the deadline for the EPA's promulgation of 
a Federal plan, and the timeline associated with requirements for 
increments of progress. The EPA notes that while it is proposing 
generally applicable timelines for the implementing regulations, a 
particular EG may include its own specific timelines. 40 CFR 
60.20a(a)(1).

III. What actions are we proposing?

    The EPA is proposing several revisions to subpart Ba both to 
address the vacatur of the timing provisions by the D.C. Circuit in 
ALA, and to further improve the state and Federal plan development and 
implementation process. In response to the ALA decision, this action 
proposes timeframes for (1) state plan submittal, (2) the EPA's action 
on state plan submissions, (3) the EPA's promulgation of a Federal 
plan, and (4) requirements to establish increments of progress (see 
section III.A of this preamble). This action further proposes to revise 
the timeframe for the EPA's determination of completeness on a state 
plan submission. Additionally, the EPA is proposing to revise the 
conditions under which the EPA must promulgate a Federal plan in 
instances where a state has not submitted a complete plan (see section 
III.B of this preamble).
    The EPA is also proposing to enhance requirements for reasonable 
notice and opportunity for public participation in subpart Ba to 
require that states, as part of the state plan development or revision 
process, undertake outreach and meaningful engagement with a broad 
range of pertinent stakeholders. Pertinent stakeholders include 
communities most affected by and vulnerable to the impacts of the plan 
or plan revision (see section III.C of this preamble). Increased 
vulnerability may be attributable, among other reasons, to both an 
accumulation of negative and lack of positive environmental, health, 
economic, or social conditions within these populations or communities.
    To improve flexibility and efficiency in the submission, review, 
approval, and implementation of state plans, the EPA is proposing to 
include the following regulatory mechanisms in subpart Ba, all of which 
currently exist under CAA section 110: (1) partial

[[Page 79181]]

approval/disapproval, (2) conditional approval, (3) allowance for 
parallel processing, (4) a mechanism for the EPA to call for plan 
revisions, and (5) an error correction mechanism (see section III.D).
    The EPA is also proposing revisions to properly implement the 
remaining useful life and other factors (RULOF) provision of the 
statute. These revisions are intended to provide clarity and 
consistency for states and the EPA in considering RULOF when applying 
standards of performance to individual sources, while still fulfilling 
the statutory purpose of CAA section 111(d) (see sections III.E of this 
preamble). The EPA is also proposing to require electronic submissions 
of state plans (see section III.F of this preamble).
    Finally, this action proposes clarifying amendments to the subpart 
Ba definition of standard of performance and proposes to amend the 
Agency's interpretation of CAA section 111(d) with respect to 
permissible compliance (see section III.G of this preamble). In 
particular, the EPA is proposing to determine that, under appropriate 
circumstances, the EPA may approve state plans that authorize sources 
to meet their emission limits in the aggregate, such as through 
standards that permit compliance via trading or averaging. In doing so, 
the EPA is also proposing to conclude that CAA section 111 does not 
limit the BSER to controls that can be applied at and to the source. 
The EPA is also proposing several additional minor clarifications or 
revisions as described in section III.G of this preamble.
    The EPA recognizes that, under certain circumstances, some 
provisions of the implementing regulations may not fit the needs of a 
specific EG. Therefore, the implementing regulations provide that each 
EG may include specific implementing provisions in addition to or that 
supersede the requirements of subpart Ba. 40 CFR 60.20a(a)(1). The EPA 
will address unusual circumstances or facts that are not accommodated 
by the general provisions of subpart Ba through a specific EG as the 
time and processes needed for development and adoption of state plans 
to implement the EG may be affected by unusual characteristics of a 
source category. An example of an EG where the EPA is proposing to 
supersede certain requirements of subpart Ba to address the specific 
facts and circumstances of the source category (including to diverge 
from some of the general requirements proposed in this action) is the 
proposed EGs to regulate greenhouse gas emissions (in the form of 
methane limitations) from sources in the oil and natural gas 
industry.\8\
---------------------------------------------------------------------------

    \8\ For example, see supplemental notice of proposed rulemaking 
titled ``Standards of Performance for New, Reconstructed, and 
Modified Sources and Emissions Guidelines for Existing Sources: Oil 
and Natural Gas Sector Climate Review,'' where, due to the size and 
variety of emission sources in the oil and gas sector, the EPA has 
proposed to permit states 18 months to submit state plans rather 
than the general 15 months proposed here.
---------------------------------------------------------------------------

    The EPA notes that the remaining provisions in subpart Ba were not 
affected by the ALA decision and remain legally effective. This 
includes 40 CFR 60.20a(a), which makes subpart Ba applicable to any 
final EG published after July 8, 2019. 40 CFR 60.20a(a). Therefore, the 
revisions to subpart Ba proposed in this action, if finalized, would 
apply to any EG published after July 8, 2019. The EPA is not soliciting 
comment on this action as it applies to any specific EG or source 
category. The EPA is only soliciting comment on the proposed changes to 
subpart Ba as specifically described in this preamble. The EPA is not 
reopening any other provisions of subpart Ba not addressed by these 
proposed changes. The EPA will only consider comments that pertain to 
the topics discussed in this action.

A. Revised Implementing Timelines

    As described in section II.A. of this preamble above, the subpart 
Ba timing requirements were vacated by the D.C. Circuit in the ALA 
decision. These vacated timing requirements are: the timeline for state 
plan submissions, the timeline for the EPA to act on a state plan, the 
timeline for the EPA to promulgate a Federal plan, and the timeline 
that dictates when state plans must include increments of progress. 
These timelines are all critical to ensuring that the emission 
reductions anticipated by the EPA in an EG become federally enforceable 
measures and are timely implemented by the designated facilities. The 
EPA is proposing revised timelines for these key aspects of 
implementation that both appropriately accommodate the process required 
by states and the EPA to develop and evaluate plans to effectuate the 
EG and are consistent with the objective of CAA section 111(d) to 
ensure that designated facilities control emissions of pollutants that 
the EPA has determined may be reasonably anticipated to endanger public 
health or welfare. These timelines will be applicable to any final EG 
published after July 8, 2019, including those currently proposed to 
regulate greenhouse gas emissions (in the form of methane limitations) 
from sources in the oil and natural gas industry, to the extent the 
final EG does not contain EG-specific requirements superseding subpart 
Ba. 86 FR 63110, November 15, 2021.
    As described in greater detail above in section II of this 
preamble, the D.C. Circuit's vacatur of the extended timelines in 
subpart Ba was based both on the EPA's failure to substantiate the 
necessity for the additional time at each step of the administrative 
process, and the EPA's failure to address how those extended 
implementation timelines would impact public health and welfare. 
Accordingly, the EPA has evaluated these factors and is proposing 
timelines, as described in the following sections, based on the minimum 
administrative time reasonably necessary for each step in the 
implementation process, thus minimizing impacts on public health and 
welfare while accommodating the time needed for states to develop an 
effective plan. This approach addresses both aspects of the ALA 
decision because the EPA and states will take no longer than necessary 
to develop and adopt plans that impose requirements consistent with the 
overall objectives of CAA section 111(d).
    The EPA is proposing the following timelines to replace those 
vacated in ALA, as discussed in further detail in this preamble: 15 
months for state plan submissions after publication of a final EG; 12 
months for the EPA to take final action on a state plan after 
submission; 12 months for the EPA to promulgate a Federal plan either 
after the state plan deadline if a state has failed to submit a 
complete plan, or after the EPA's disapproval of a state plan 
submission; and, requiring state plans to include increments of 
progress if the plan requires final compliance with standards of 
performance later than 16 months after the plan submission deadline. A 
summary of the timelines is shown in Table 1.

[[Page 79182]]



Table 1--Proposed Subpart Ba Timelines Compared With Those Vacated From Subpart Ba and With Those From Subpart B
----------------------------------------------------------------------------------------------------------------
                                           2022 Subpart Ba         Subpart Ba (2019)
             Process step                      proposal            vacated timelines         Subpart B (1975)
----------------------------------------------------------------------------------------------------------------
State Plan submittal after effective   15 months..............  36 months..............  9 months.
 date of EG.
State Plan completeness determination  2 months after State     6 months after State     N/A.
                                        Plan submission.         Plan submission.
State Plan evaluation................  12 months after          12 months after          4 months after State
                                        completeness.            completeness.            Plan submittal
                                                                                          deadline.
EPA Federal Plan promulgation........  12 months after failure  24 months after finding  6 months after State
                                        to submit or             of failure to submit     Plan submittal
                                        disapproval.             or disapproval.          deadline.
Requirements for Increments of         If compliance is >16     If compliance is >24     If compliance is >12
 Progress after submittal deadline.     months.                  months.                  months.
----------------------------------------------------------------------------------------------------------------

    The EPA acknowledges these deadlines are not identical to those for 
SIPs under CAA section 110. This is consistent with the requirement of 
CAA section 111(d) that the EPA to promulgate a procedure ``similar'' 
to that of CAA section 110, rather than an identical procedure. This is 
also consistent with the ALA decision, which requires the EPA to 
``engage meaningfully with the different scale'' of CAA section 111(d) 
and 110 plans. Am. Lung Ass'n v. EPA, 985 F.3d 914, 993 (D.C. Cir. 
2021). Accordingly, the EPA evaluated each step of the implementation 
process to independently determine the appropriate duration of time to 
accomplish the given step as part of the overall process, and the 
timelines proposed in these implementing regulations represent what the 
EPA has determined will be necessary for the implementation of most 
EGs. An EG for a typical source category or pollutant, for which the 
proposed timelines would be appropriate, might include: an inventory of 
designated facilities; a well-defined BSER and presumptive level of 
stringency so that states need to do little analytical work to 
establish standards of performance; an EPA-provided model rule; and 
state plan requirements that do not significantly deviate from these 
general implementing regulations.
    The EPA recognizes that there may be EGs for pollutants or source 
categories that require exceptions or accommodations to these general 
requirements. Examples of circumstances that may require an exception 
could include EGs that require states to perform extensive engineering 
and/or economic analyses for their plan; EGs with an exceptional need 
to expedite implementation (e.g., immediate impact for health and 
welfare impacts); EGs that apply to an extraordinary number of 
designated facilities; or EGs that are novel and/or unusually complex. 
For situations like these, 40 CFR 60.20a(a)(1) provides that an EG may 
supersede any aspect of the implementing regulations, including the 
implementation timelines. It is within the EPA's discretion to 
determine whether a proposed change in implementation time may be 
justified within an individual EG based on these or other appropriate 
factors. For EGs that supersede implementation timelines, the EPA is 
proposing to require that the EPA both provide a justification for the 
differing timelines and address how the change in timeline will impact 
health and welfare. The EPA is not in this action seeking comment on 
whether to supersede the presumptive subpart Ba timelines for any 
particular EG.
1. State Plan Submission Timelines
    This section discusses the EPA's proposal for the duration of time 
states will have to submit plans to the EPA following the publication 
of a final EG. Under CAA section 111(d), it is first the EPA's 
responsibility to establish a BSER and a presumptive level of 
stringency via a promulgated EG. It is then each state's obligation to 
submit a plan to the EPA which establishes standards of performance for 
each designated facility. The EPA is proposing to require that each 
state adopt and submit to the Administrator, within 15 months after 
publication of a final EG, a plan for the control of the designated 
pollutant(s) to which the EG applies.
    The implementing regulations promulgated under subpart B currently 
provide that states have 9 months to submit a state plan after 
publication of a final EG. 40 CFR 60.23(a)(1). In 2019, the EPA 
promulgated subpart Ba and provided 3 years for states to submit plans, 
consistent with the timelines provided for submission of SIPs pursuant 
to CAA section 110(a)(1). This 3-year timeframe was vacated in the ALA 
decision, and thus currently there is no applicable deadline for state 
plan submissions required under EGs subject to subpart Ba. In 
evaluating the appropriate timeline for plan submittal to replace the 
vacated provision, the EPA reviewed steps that states need to carry out 
to develop, adopt, and submit a state plan to the EPA, and its history 
in implementing EGs under the timing provisions of subpart B. The EPA 
further evaluated statutory deadlines, contents, and processes for 
relatively comparable state plans under CAA section 129, and attainment 
planning SIPs pursuant CAA sections 189(a)(2)(B) and 189(b)(2)) for the 
2012 National Ambient Air Quality Standards (NAAQS) for fine 
particulate matter (PM2.5). 78 FR 3085 (January 15, 2013).
    In developing a CAA section 111(d) state plan, a state must 
consider multiple components in meeting applicable requirements. 
Subpart Ba specifies the elements that must be included in a state plan 
submission (see 40 CFR 60.24a, 60.25a, 60.26a) and certain processes 
that a state plan must undergo in adopting and submitting a plan (see 
40 CFR 60.23a). In addition to the requirements of these implementing 
regulations, there are also state-specific processes applicable to the 
development and adoption of a state plan. In particular, the component 
that the EPA expects to take the most time and have the most 
variability from state to state is the administrative process (e.g., 
through legislative processes, regulation, or permits) that establishes 
standards of performance. State rulemaking usually involves several 
phases, including providing notice that the agency is considering 
adopting the rule; taking public comment; and approving or adopting the 
final rule. The final process required to formally adopt a rule is 
different in many states.\9\

[[Page 79183]]

Considering this variability, 15 months should adequately accommodate 
the differences in state processes necessary for the development of a 
state plan that meets applicable requirements. The EPA evaluated data 
from previously implemented EGs, and the statutory deadlines and data 
from analogous programs (i.e., CAA sections 129 and 189), as described 
below, to help inform this proposed 15-month timeline. The EPA solicits 
comment on whether the proposed 15-month timeline adequately 
accommodates state-level administrative processes in developing and 
adopting plans without substantially or unnecessarily delaying emission 
reductions that are protective of public health or welfare (Comment A1-
1).
---------------------------------------------------------------------------

    \9\ In many states, the agency must submit its rule to a 
particular independent commission or the legislature for review and 
approval before the rule is finally adopted. Generally, adopted 
rules are filed with a state entity, such as the Secretary of State, 
and eventually published in a register and placed into the state's 
administrative code. State law establishes when an adopted rule is 
effective.
---------------------------------------------------------------------------

    As previously described, subpart B provides 9 months for states to 
submit plans after publication of a final EG. The EPA's review of 
state's timeliness for submitting CAA section 111(d) plans under the 9-
month timeline indicates that most states either did not submit plans 
or submitted plans that were substantially late.\10\ We note that the 
plans submitted under subpart B were not subject to the additional 
requirements the EPA is proposing for meaningful engagement and 
consideration of RULOF, respectively described in sections III.C and 
III.E of this preamble. For these reasons, the EPA finds that 9 months 
is not a suitable amount of time for most states to adequately develop 
a plan for an EG.
---------------------------------------------------------------------------

    \10\ The EPA reviewed the information available in 40 CFR part 
62. The supporting information reviewed is available at Docket ID 
No. EPA-HQ-OAR-2021-0527. Part 62 codifies the Administrator's 
approval and disapproval of state plans for the control of 
pollutants and facilities under CAA section 111(d), and under CAA 
section 129 as applicable, and the Administrator's promulgation of 
such plans or portions of plans thereof.
---------------------------------------------------------------------------

    To help inform what is an appropriate proposal for the state plan 
submission deadline, the EPA also reviewed CAA section 129's statutory 
deadline and requirements for state plans, and the timeliness and 
responsiveness of states under CAA section 129 EGs. CAA section 129 
references CAA section 111(d) in many instances, creating considerable 
overlap in the functionality of the programs. Notably, existing solid 
waste incineration units are subject to the requirements of both CAA 
sections 129 and 111(d). CAA section 129(b)(1). The processes for CAA 
sections 111(d) and 129 are very similar in that states are required to 
submit plans to implement and enforce the EPA's EGs. However, there are 
some key distinctions between the two programs, most notably that CAA 
section 129(b)(2) specifies that state plans be submitted no later than 
1 year from the promulgation of a corresponding EG, whereas the statute 
does not specify a particular timeline for state plan submissions under 
CAA section 111(d) and is instead governed by the EPA's implementing 
regulations (i.e., subparts B and Ba). Moreover, CAA section 129 plans 
are required by statute to be at least as protective as the EPA's EGs. 
However, CAA section 111(d) permits states to take into account 
remaining useful life and other factors, which suggests that the 
development of a CAA section 111(d) plan could involve more complicated 
analyses than a CAA section 129 plan (see section III.E for more 
information on RULOF provisions). The contrast between the CAA section 
129 plans and CAA section 111(d) plans suggests that in determining the 
timeframe for CAA section 111(d) plan submissions the EPA should 
provide for a longer timeframe than the 1-year timeframe the statute 
provides under CAA section 129.
    The EPA found that a considerable number of states have not made 
required state plan submissions in response to a CAA section 129 EG. In 
instances where states submitted CAA section 129 plans, a significant 
number of states submitted plans between 14 to 17 months after the 
promulgated EG.\11\ This suggests that states will typically need more 
than 1 year to develop a state plan to implement an EG, particularly 
for a program that permits more source-specific analysis than under CAA 
section 129 as CAA section 111(d) does.
---------------------------------------------------------------------------

    \11\ The EPA reviewed the information available in 40 CFR part 
62. The supporting information reviewed is available at Docket ID 
No. EPA-HQ-OAR-2021-0527. Part 62 codifies the Administrator's 
approval and disapproval of state plans for the control of 
pollutants and facilities under CAA section 111(d), and under CAA 
section 129 as applicable.
---------------------------------------------------------------------------

    In the 2019 promulgation of subpart Ba, the EPA mirrored CAA 
section 110 by giving states 3 years to submit plans. As previously 
described, the court partly faulted the EPA for adopting the CAA 
section 110 timelines without accounting for the differences in scale 
and scope between CAA section 110 and 111(d) plans. The EPA has now 
more closely evaluated the statutory deadlines and requirements in the 
CAA section 110 implementation context to determine what is feasible 
for a CAA section 111(d) state plan submission timeline. The EPA 
specifically focused on statutory SIP submission deadline and 
requirements in the context of attainment plans for the 2012 
PM2.5 NAAQS under CAA section 189. CAA section 189(a)(2)(B) 
requires states to submit attainment planning SIPs within 18 months 
after an area is designated nonattainment. The 2012 PM2.5 
NAAQS attainment plans were, in most cases, more complicated for states 
to develop when compared to a typical plan under CAA sections 111(d). 
For example, attainment plans require states to determine how to 
control a variety of sources, based on extensive modeling and analyses, 
in order to bring a nonattainment area into attainment of the NAAQS by 
a specified attainment date. Under CAA section 111(d), it is clear 
which designated facilities must be subject to a state plan, and the 
standards of performance for these sources must reflect the level of 
stringency determined by the EG unless a state chooses to account for 
RULOF. As further described in section III.E of this preamble, 
accounting for RULOF is expected to be a limited, rather than broadly 
used, exception. The difference in complexity between the CAA section 
189 plan requirements and the CAA section 111(d) plan requirements 
suggests that a timeline shorter than 18 months is more appropriate for 
development of CAA 111(d) state plans submissions.
    Thus, based on the EPA's evaluation of states' responsiveness to 
previous CAA section 111(d) EGs, the contrast between the development 
of CAA section 111(d) plans and CAA section 129 plans, and the relative 
difference in complexity between attainment plan requirements under CAA 
section 189 and CAA section 111(d) state plan requirements, the EPA is 
proposing to require that state plans under CAA section 111(d) be due 
15 months after publication of a final EG. This proposed timeframe is 
substantially shorter than the 3 years deadline vacated by the D.C. 
Circuit; however, the timeline should provide states adequate time to 
adopt and submit approvable plans without extending the timing such 
that significant adverse impacts to health and welfare are likely to 
occur from the foregone emission reductions during the state planning 
process. Allowing states sufficient time to develop feasible 
implementation plans for their designated facilities that adequately 
address public health and environmental objectives also ultimately 
helps ensure more timely implementation of an EG, and therefore 
achievement in actual emission reductions, than would an unattainable 
deadline that may result in the failure of states to submit plans and 
requiring the development and implementation a of Federal plan. The EPA 
is soliciting comment on the proposed state plan submission timeline 
and the analysis

[[Page 79184]]

supporting the EPA's proposed determination regarding the amount of 
time reasonably necessary for plan development and submission. The EPA 
is also soliciting comment on whether the EPA should consider any other 
factors in setting this timeline (Comment A1-2).
    The EPA recognizes that the court, in ALA, faulted the Agency for 
failing to consider the potential impacts to public health and welfare 
associated with extending planning deadlines. The EPA does not 
interpret the court's direction to require a quantitative measure of 
impact, but rather consideration of the importance of the public health 
and welfare goals when determining appropriate deadlines for 
implementation of regulations under CAA section 111(d). Because 15 
months is the generally expeditious period of time in which the EPA 
finds that most states can create and submit a plan per the EPA's 
corresponding emission guidelines that is both comprehensive and 
legally sound, it follows that the EPA has appropriately considered the 
potential impacts to public health and welfare associated with this 
extension of time by providing no more time than the states reasonably 
need to ensure a plan is comprehensive and timely. To the extent the 
EPA considers deviating from these expeditious timeframes in 
promulgating an EG in the future, the EPA will consider the public 
health and welfare impacts associated with the change, consistent with 
the court's direction in ALA, particularly where the EPA is providing 
additional time for state plan development.
    While the EPA is proposing and soliciting comment on all components 
of the implementation timelines proposed in this action, the EPA is 
especially interested in comments regarding the proposed state plan 
submission timeline. The EPA acknowledges that there are a number of 
individual state-specific factors that can affect the amount of time 
required for the development and submission of state plans. The EPA is 
therefore soliciting specific comments on details of state plan 
development and adoption processes and how those should inform a state 
plan submission deadline, including whether there are reasons why the 
EPA should consider either a longer or a shorter timeframe (Comment A1-
3).
    As discussed in section III.C of this preamble below, the EPA is 
proposing to revise subpart Ba to include a requirement for states to 
undertake outreach and meaningful engagement with pertinent 
stakeholders as part of the state plan development process. The EPA 
solicits comment on how much, if any, time this additional engagement 
will take in the state plan development process (Comment A1-4). The EPA 
recognizes that the time needed to conduct meaningful engagement will 
be highly dependent on the number and location of designated facilities 
addressed by an EG, as well as on the type of health or environmental 
impacts of the associated emissions. If stakeholder and public 
involvement required by the proposed amendments does not generate a 
large number of specific and unique comments, data, or other 
considerations, then the level of effort states will employ to review 
them will be lower in comparison to when meaningful engagement comments 
are voluminous. Also, to the extent that states already employ 
significant engagement with pertinent stakeholders, the proposed 
meaningful engagement amendments would not result in additional costs, 
while other states that do not have engagement procedures already in 
place may be required to increase their level of effort to engage with 
pertinent stakeholders.
    In section III.E of this preamble, the EPA is also proposing 
revisions to the RULOF provision. These proposed revisions would 
clarify the procedures for considering RULOF by establishing a robust 
analytical framework that would require a state to provide a sufficient 
justification when applying a standard of performance that is less 
stringent than the EPA's presumptive level of stringency, thereby 
allowing the EPA to readily determine if the state's plan is 
satisfactory and therefore approvable. The proposed state plan 
submission timeline of 15 months should adequately provide time for 
states to conduct the analyses required by this provision; however, the 
EPA is soliciting comment on whether states will need additional time 
in the plan development to account for instances where RULOF is 
considered. The EPA is specifically requesting comment on how much 
additional time might be required for this consideration and how that 
additional time fits within the entire process of state plan 
development (Comment A1-5).
    The proposed state plan submission timeline should be generally 
achievable by states. The EPA notes it is obligated to promulgate a 
Federal plan for states that have not submitted a plan by the 
submission deadline. Once the obligation to promulgate a Federal plan 
is triggered, it can only be tolled by the EPA's approval of a state 
plan. If a Federal plan is promulgated, a state may still submit a plan 
to replace the Federal plan. A Federal plan under CAA section 111(d) is 
a means to ensure timely implementation of EGs, and a state may choose 
to accept a Federal plan for their sources rather than submit a state 
plan. While the EPA encourages states to timely submit plans for EGs, 
there are no sanctions associated with failing to timely submit an 
approvable plan or with the implementation of a Federal plan.\12\
---------------------------------------------------------------------------

    \12\ CAA section 179 provides that sanctions should be applied 
in states that fail to submit approvable SIPs for certain specified 
requirements for NAAQS implementation. The EPA has not promulgated 
any similar sanctions provisions governing the submission of state 
plans pursuant to section 111(d).
---------------------------------------------------------------------------

2. Timeline for the EPA To Determine Completeness of State Plans
    Once a state plan has been submitted to the EPA, the EPA reviews 
the plan for ``completeness'' to determine whether the plan includes 
certain elements necessary to ensure that the EPA can substantively 
evaluate the plan. The EPA determines completeness by comparing the 
state's submission against the administrative and technical criteria 
specified in subpart Ba to see if the submission contains the elements 
specified therein (see 40 CFR 60.27a(g) for completeness criteria). In 
the 2019 promulgation of subpart Ba, the timeline provided for the EPA 
to determine the completeness of a state plan mirrored the language in 
CAA section 110(k)(1)(B): ``Within 60 days of the Administrator's 
receipt of a plan or plan revision, but no later than 6 months after 
the date, if any, by which a State is required to submit the plan or 
revision, the Administrator shall determine whether the minimum 
criteria [for completeness] have been met.''
    After a state plan is complete through either an affirmative 
determination or by operation of law, the EPA will act on the state 
plan submission through notice-and-comment rulemaking. The proposed 
timeline for the EPA to act on a state plan submission can be found in 
section III.A.3 of this preamble below.
    If a state plan submission does not contain the elements required 
by the completeness criteria, the EPA would find that the state has 
failed to submit a complete plan and notify the state through a letter. 
The determination of incompleteness treats the state as if the state 
has made no submission at all. The determination that a submission is 
incomplete and that the state has failed to submit a plan is 
ministerial in nature and requires no exercise of discretion or 
judgment on the Agency's part.
    As part of the EPA's overall effort to set implementation timelines 
under

[[Page 79185]]

CAA section 111(d) that are as expeditious as possible, the EPA is 
proposing to revise the timing element of the completeness review in 
subpart Ba. In light of the ministerial nature of the completeness 
determination, the EPA proposes to provide a maximum of 60 days from 
receipt of the state plan submission for the EPA to make a 
determination of completeness. The EPA is additionally proposing to 
provide that any state plan or plan revision submitted to the EPA that 
has not received a completeness determination within 60 days of 
receipt, shall on that date be deemed, by operation of law, to meet the 
completeness criteria, which will trigger the EPA's obligation to take 
substantive action on the state plan. Sixty days provides an 
expeditious timeframe for the EPA to evaluate state plans for 
completeness and to notify the states of the determination. Because the 
EPA may be required to evaluate up to 50 state plans during this 
period, in addition to plans submitted by territories, tribes and local 
governments, the EPA does not find that this timeframe could reasonably 
be shortened any further. The EPA is soliciting comment on the 
appropriateness of providing a 60-day timeline for the EPA to conclude 
its completeness review (Comment A2-1).
    The EPA notes that, because the EPA's finding of a plan as 
incomplete puts a state in the legal status of not having submitted a 
plan at all, the status and potential delinquency of a state's plan is 
evaluated against the state plan submission deadline. If the EPA 
determines that a plan is incomplete and this occurs at some point 
after the state plan submission deadline, the EPA treats the state as 
if the state has made no submission at all and thus the EPA's authority 
to provide a Federal plan is triggered. If a state submits a plan prior 
to the state plan submission deadline and the EPA also makes a 
determination that the plan is incomplete prior to the state plan 
submission deadline, the EPA will treat the state as if the state has 
made no submission at all, but this determination does not yet trigger 
further action by the EPA. Instead, because the state still has an 
opportunity to submit a complete plan before the state plan submission 
deadline, the EPA's authority to promulgate a Federal plan is only 
triggered if the state fails to timely submit a new plan to replace the 
incomplete plan by the state plan deadline.
3. Timeline for the EPA's Action on State Plans
    After a state plan has been determined to be complete or is deemed 
complete by operation of law, the EPA must evaluate and determine 
whether the plan or plan revision is approvable, in part or in whole 
(see section III.D.1 of this preamble for discussion on proposed 
partial plan approvals). In order to determine whether it is 
appropriate to approve or disapprove a state plan, CAA section 111(d) 
provides that the EPA must evaluate whether the plan is 
``satisfactory,'' that is, whether the components of the plan meet all 
the requirements of the statute, these implementing regulations, and 
the corresponding EG, through a proposed notice-and-comment rulemaking. 
After the EPA reviews comments on the proposed action, the EPA will 
finalize its action to approve or disapprove the plan. If the EPA 
approves a state plan, the standards of performance and other 
components of that state plan become federally enforceable. If the 
state plan is disapproved, in part or in whole, the EPA is obligated to 
promulgate a Federal plan for designated facilities within that state 
(see section III.A.4 of this preamble below for the EPA's timeline to 
publish a Federal plan).
    Subpart B requires the EPA to take action on applicable state plans 
(e.g., approve or disapprove) within 4 months after the date required 
for submission. 40 CFR 60.27(b). In the development of subpart Ba, the 
EPA contended that 4 months was an inadequate time to review and take 
action on state plans and therefore instead provided a deadline of 12 
months for final action on a state plan (mirroring the maximum time 
permitted under CAA section 110(k)(1)(2) for the EPA's action on 
complete SIPs). 84 FR 32520, July 8, 2019. In the ALA decision, the 
D.C. Circuit vacated this revised timeline in subpart Ba on the basis 
that the EPA did not adequately justify the extended timeframes and did 
not consider the public health and welfare impacts of extending the 
implementation times. As is discussed below, the EPA has now closely 
evaluated the process, steps, and timeframes for the EPA to 
substantively review and act upon each state plan submission through a 
public notice-and-comment rulemaking process. After considering the 
time anticipated to be necessary for generally expeditious EPA action 
on state plans, the EPA is again proposing to require that it must take 
final action on a state plan or plan revision submission within 12 
months after a plan is determined to be complete or becomes complete by 
operation of law.\13\
---------------------------------------------------------------------------

    \13\ The deadlines for the EPA action under subpart Ba would 
apply to any state plan submission regardless of when it is 
submitted.
---------------------------------------------------------------------------

    The first step of the EPA acting on a plan is that once a state 
plan submittal has been deemed ``complete'' under 40 CFR 60.27a(g), an 
intra-agency workgroup reviews the plan components to determine whether 
they conform to the applicable regulatory requirements. The workgroup 
may require a broad range of expertise in legal, technical, and policy 
areas, potentially including attorneys, engineers, scientists, 
economists, air monitoring experts, health and welfare analysts, and/or 
policy analysts from across a variety of EPA programs. After review and 
coordination, the workgroup then develops recommendations for approval 
or disapproval of each plan component and presents them to Agency 
decision-makers for review. Once the Agency completes its internal 
decision-making process, the workgroup proceeds to prepare a written 
notice of proposed rulemaking. The notice of proposed rulemaking 
contains the EPA's legal, policy, and technical bases for its proposed 
action on a state plan submission, which must be thoroughly developed 
and explained in writing to provide clear and concise information and 
reasoning to support the public in understanding the Agency's decision 
and the justification for that decision, and so that the public may 
provide informed comments on the proposal. The EPA may further develop 
technical support documents as record support for the proposal. The 
draft proposed rulemaking and any record support then undergo a multi-
layered review process across EPA offices and levels of management 
before being processed for signature. The process to evaluate the state 
plan, draft a proposed action on a CAA section 111(d) state plan, and 
get the proposed action edited, reviewed, and signed typically requires 
a minimum of between 6 to 8 months to complete. The signed notice of 
proposed rulemaking is then submitted for publication in the Federal 
Register, which may require several weeks processing prior to 
publication.
    The publication of the proposed rulemaking triggers the start of a 
public comment period of at least 30 days with possible extension if 
requested. Because of the types of sources and pollutants regulated 
under CAA section 111(d), the EPA reasonably anticipates that many of 
its proposed actions on state plans will garner significant public 
interest from individuals, industry, states, and

[[Page 79186]]

environmental and public health advocates. After completion of the 
comment period, the EPA then reviews all comments and determines 
whether, based on any comment, it should alter its proposed action or 
further augment the legal, policy, and technical rationales supporting 
that action. Comments received on a proposed action may include 
technical information that was not available to the EPA at the time of 
proposal. In the event technical data are received as part of comments 
on the proposed action, the EPA would then be required to review the 
new data and evaluate whether and how it should affect the EPA's 
proposed conclusions regarding the state plan. If a substantive comment 
is raised that merits reconsideration of the EPA's proposed action, the 
EPA may determine that it is necessary to revise and repropose its 
action on the state plan or it may go to the state for more information 
to help the Agency determine how to proceed.
    Once this review of comments is complete, the workgroup drafts and 
presents updated recommendations for action for internal review and 
consideration by Agency decision-makers. Once the Agency completes its 
internal decision-making process, the workgroup then drafts a notice of 
final rulemaking on the plan submission, which includes responses to 
comments, any necessary record support, and may also include final 
regulatory text. The draft final action is then reviewed by senior 
management and other interested EPA offices within the Agency prior to 
signature of the final rulemaking approving or disapproving, in whole 
or in part, a state plan. It is reasonable to permit at least 4 to 7 
months for evaluation of the comments received, any necessary technical 
analysis, decision-making, and drafting and review of the final action.
    The duration of each step in this deliberative process varies. The 
amount of time the EPA needs to review a state plan submission and the 
time it needs to finalize a notice of proposed rulemaking, depends in 
part on the plan's complexity and the nature of the technical, policy, 
and legal issues that it implicates. For example, a state plan 
submission that invokes RULOF for several designated facilities is more 
complex and time consuming to review than a plan that simply 
establishes standards of performance reflecting the presumptive level 
of stringency for all sources. Similarly, the amount of time needed to 
respond to comments and issue a final rulemaking depends in part on the 
number and type of comments received on the EPA's proposed rulemaking. 
Additionally, the EPA reasonably anticipates that it will be required 
to review multiple plan submissions at a given time, and these phases 
of review for a given plan are impacted by the EPA's review of other 
state plan submissions, as the EPA will need to assure its review 
across multiple plans and regional offices is consistent from a legal, 
technical, and policy perspective.
    The EPA finds 12 months is a reasonably expeditious timeframe to 
accommodate the EPA to act on a state plan or plan revision submission 
and the considerations described above, while ensuring that an EG is 
expeditiously implemented. The process and steps described above 
highlight the fact that it would be unreasonable, if not impossible, to 
accomplish all of the steps in a legally and technically sound manner 
within a 4-month timeframe as required under subpart B. Particularly, 
the EPA's proposed action has to be open for public comment for at 
least 30 days, therefore the 4-month timeline provided in subpart B 
only gives the EPA 3 months to do the substantive work of both the 
proposed and final actions, including evaluating the state plan 
submission, drafting preamble notices, responding to comments, and 
developing record support at both the proposed and final action stages. 
A 12-month timeframe after a plan is determined to be complete more 
reasonably accommodates the process and steps described above.\14\
---------------------------------------------------------------------------

    \14\ While the EPA would have the discretion to act on a state's 
submission more quickly than 12 months where specific circumstances 
allow (e.g., where there are no public comments on the proposed 
action), the EPA does not believe that it would be reasonably 
possible to act significantly more quickly than 12 months in most 
cases.
---------------------------------------------------------------------------

    The EPA recognizes that the court in ALA faulted the Agency for 
failing to consider the potential impacts to public health and welfare 
associated with extending planning deadlines. The EPA does not 
interpret the court's direction to require a quantitative measure of 
impact, but rather consideration of the importance of the public health 
and welfare goals of CAA section 111(d) when determining appropriate 
deadlines. Because 12 months is an adequate period of time in which the 
EPA can both expeditiously act on a plan submission and ensure that its 
action is technically and legally sound, it follows that the EPA has 
appropriately considered the potential impacts to public health and 
welfare associated with this extension of time by providing no more 
time than the EPA reasonably needs to ensure a plan submission contains 
appropriate and protective emission reduction measures. If the EPA does 
not have adequate time to evaluate a state plan submission, its ability 
to ensure the plan contains appropriate measures to satisfactorily 
implement and enforce the standards necessary to comply with the EG may 
be compromised, which would in turn compromise the EPA's ability to 
ensure that the public health and welfare objectives of the EG are 
satisfied.
    The EPA is soliciting comment regarding its rationale for proposing 
a 12-month timeframe for the EPA's action on a complete state plan or 
plan revision submission, including whether there are reasons that the 
EPA should consider either a longer or a shorter timeframe (Comment A3-
1). The EPA notes that this timeframe for the EPA's action on complete 
state plan submission would apply to any final EG regulating greenhouse 
gas emissions from sources in the oil and natural gas industry. 86 FR 
63110, November 15, 2021.
4. Timeline for the EPA To Promulgate a Federal Plan
    CAA section 111(d)(2) provides that the EPA has the same authority 
to prescribe a Federal plan for a state that fails to submit a 
satisfactory plan as it does for promulgating a FIP under CAA section 
110(c). Accordingly, the EPA's obligation to promulgate a Federal plan 
is triggered in three situations: where a state does not submit a plan 
by the plan submission deadline; where the EPA determines a portion or 
all of a state plan submission did not meet the completeness criteria 
and the time period for state plan submission has elapsed and, 
therefore, the state is treated as having not submitted a required 
plan; and where the EPA disapproves a state's plan. 40 CFR 20.27a(c). 
In the first two instances of triggering a Federal plan, the EPA is 
proposing to require that its timeline to promulgate a Federal plan for 
those states would begin the day after the state plan is due.\15\ In 
the third instance, the

[[Page 79187]]

EPA is proposing to require that its timeline to promulgate a Federal 
plan would begin at its disapproval of the state's plan.
---------------------------------------------------------------------------

    \15\ The EPA has discretion to address its obligation to 
promulgate a Federal plan in a variety of ways for states that do 
not have an approved state plan. For example the EPA may initially 
promulgate a single Federal plan that applies to all appropriate 
states and then update that Federal plan as necessary to accommodate 
the inclusion of other states that trigger the need for a Federal 
plan in the future (e.g., a Federal plan that applies to states that 
fail to submit a plan can be updated to include applicability for 
states that later have a plan disapproved); or the EPA may 
promulgate Federal plans each time its authority to do so has been 
triggered (e.g., the EPA will promulgate a Federal plan for all 
states that fail to submit a plan and another Federal plan for all 
states that have their plan disapproved).
---------------------------------------------------------------------------

    The original implementing regulations in subpart B provided the EPA 
with 6 months to promulgate a Federal plan once its obligation to do so 
was triggered. 40 CFR 60.27(d). When the EPA promulgated subpart Ba in 
2019, it concluded that this amount of time was insufficient and 
consequently extended the time for the EPA to promulgate a Federal plan 
to 24 months, mirroring the timeframe permitted for promulgation of a 
FIP under CAA section 110. 84 FR 32520, July 8, 2019. In the ALA 
decision, the D.C. Circuit vacated this revised timeline in subpart Ba 
on the basis that the EPA did not adequately justify the extended 
timeframe and did not consider the health and welfare impacts of 
extending the implementation timeframe.
    In this action, the EPA reevaluated the process, steps, and 
timeframes for the EPA to promulgate a Federal plan through a public 
notice-and-comment rulemaking process.\16\ Based on this assessment as 
presented below, the EPA is proposing to require that it promulgate a 
Federal plan within 12 months after either the date required for 
submission of a state plan (for states that fail to submit a complete 
plan) or the date the EPA disapproves a state's plan. The EPA is also 
proposing a change to the trigger for the EPA's obligation and timeline 
to provide a Federal plan for states that do not submit a timely plan 
and that discussion is found in section III.B of this preamble.
---------------------------------------------------------------------------

    \16\ The EPA reviewed the information available in 40 CFR part 
62 associated with the promulgation of Federal Plans under CAA 
section 111(d). The supporting information reviewed is available at 
Docket ID No. EPA-HQ-OAR-2021-0527. Under the provisions of CAA 
section 111 and subpart B, the EPA promulgated Federal plans for 
municipal solid waste landfills EG 40 CFR part 60 subpart Cc 
(Federal plan codified at 40 CFR part 62 subpart GGG) and municipal 
solid waste landfills EG 40 CFR part 60 subpart Cf (Federal plan 
codified at 40 CFR part 62 subpart OOO).
    The EPA also reviewed information available in 40 CFR part 62 
associated with the promulgation of Federal Plans under CAA 129. The 
supporting information reviewed is available at Docket ID No. EPA-
HQ-OAR-2021-0527. Under the provisions of CAA sections 111 and 129 
and subpart B, the EPA has promulgated Federal plans for large 
municipal waste combustors EG 40 CFR part 60 subpart Cb (Federal 
plan codified at 40 CFR part 62 subpart FFF); small municipal waste 
combustors EG 40 CFR part 60 subpart BBBB (Federal plan codified at 
40 CFR part 62 subpart JJJ); hospital, medical, and infectious waste 
incinerators EG 40 CFR part 60 subpart Ce (Federal plan codified at 
40 CFR part 62 subpart HHH); commercial and industrial solid waste 
incinerators EG 40 CFR part 60 subpart DDDD (Federal plan codified 
at 40 CFR part 62 subpart III) and sewage sludge incinerators EG 40 
CFR part 60 subpart MMMM (Federal plan codified at 40 CFR part 62 
subpart LLL).
---------------------------------------------------------------------------

    A Federal plan must meet the requirements of CAA section 111(d) and 
therefore contain the same components as a state plan, namely standards 
of performance for designated facilities and measures that provide for 
the implementation and enforcement of such standards. CAA section 
111(d)(2)(B) also explicitly requires the EPA to consider RULOF in 
promulgating a standard of performance under a Federal plan. 
Additionally, Federal plans containing standards of performance are 
subject to the procedural requirements of CAA section 307(d), such as 
the requirements for proposed rulemaking and opportunity for public 
hearing. CAA section 307(d)(1)(C). 40 CFR 60.27a implements these 
various statutory requirements and contains general regulatory 
requirements for the EPA's promulgation of a Federal plan. To meet 
these applicable requirements, the process, and steps for the EPA to 
promulgate a Federal plan is described in the following paragraphs.
    Once the EPA's obligation to promulgate a Federal plan is 
triggered, the EPA establishes an intra-agency workgroup to develop the 
rulemaking action to address that obligation. The workgroup first 
develops recommendations for the components of the Federal plan to be 
proposed, and on legal, policy, and technical rationales that support 
the recommendations. These components are identified in subpart Ba as 
well as in the corresponding EG and are generally the same as those 
required for a state plan. One of these fundamental components is the 
determination of standards of performance for designated facilities. 
Based on the requirements of CAA sections 111(d) and 111(a)(1), these 
standards must generally reflect the presumptive level of stringency 
the EPA determines as part of the EG. Depending on the form of the 
presumptive level of stringency given in a particular EG, the EPA may 
need to do additional work to calculate standards of performance that 
reflect this level of stringency. For example, an EG may provide the 
presumptive level of stringency as numerical emission rates, which a 
Federal plan could adopt as the requisite standards of performance. 
However, if an EG provides the presumptive level of stringency in a 
form other than numerical standards, the EPA may need to calculate 
appropriate standards of performance in the context of a Federal plan. 
Further, CAA section 111(d)(2) requires the EPA to consider RULOF for 
sources in the source category in setting standards of performance as 
part of a Federal plan which requires the EPA, at least, to identify 
and evaluate the remaining useful lives, among other appropriate 
factors, and accordingly establish corresponding standards of 
performance. The development of a Federal plan may also necessitate a 
determination of appropriate testing, monitoring, reporting, and 
recordkeeping requirements to implement the standard if the EG does not 
provide presumptive requirements to address those aspects of 
implementation. Further, the EPA will need to consider associated 
compliance times for designated facilities in circumstances where they 
are not provided by an EG, or in cases where a standard of performance 
is adjusted to account for RULOF. There may also be situations where 
increments of progress are warranted, and the EPA will correspondingly 
need to identify and determine the appropriate increments of progress. 
The development of a Federal plan with these components will also 
include the element of meaningful engagement, as being proposed in this 
action and further described in section III.C of this preamble.
    Once the recommendations for each component are developed, the 
workgroup presents them to Agency decision-makers for review. After the 
Agency completes its internal decision-making process, the workgroup 
proceeds to prepare a written notice of proposed rulemaking. The 
proposal must include the following elements, as required by CAA 
section 307(d)(3): the factual data on which the proposed rulemaking is 
based; the methodology used in obtaining the data and in analyzing the 
data; and the major legal interpretations and policy considerations 
underlying the proposed rulemaking. These elements must be thoroughly 
developed and explained in the proposal to meaningfully provide the 
public adequate information to comment on the proposal. The EPA may 
further develop a technical support document as record support for the 
proposal.
    The draft proposed rulemaking and any record support are then 
reviewed by the relevant EPA offices and processed for signature. The 
signed notice of proposed rulemaking is then submitted for publication 
in the Federal Register. To develop the proposed Federal plan 
rulemaking, establish unique standards for RULOF, allow review of 
materials by senior management, go through an interagency review 
process and have the package signed typically requires a

[[Page 79188]]

minimum of between six to 9 months to complete.
    As previously noted, the EPA's promulgation of a Federal plan is 
subject to the requirements of CAA section 307(d), which includes 
providing the public with an opportunity to provide an oral 
presentation at a public hearing. CAA section 307(d)(5). The Federal 
Register Act requires the EPA to provide sufficient notice of a public 
hearing, which (in the absence of a different time specifically 
prescribed by the relevant Act of Congress) is satisfied if the EPA 
provides at least 15 days' notice. 44 U.S.C. 1508. Section 307(d)(5) of 
the CAA further provides that the EPA must keep the record for the 
proposed action open for public comment for 30 days after any public 
hearing for the submission of rebuttal and supplemental information. 
Because the EPA reasonably expects to provide notice of the required 
public hearing at the time its proposed action is published in the 
Federal Register, in order to allow for both a 15-day notice of the 
public hearing and a subsequent 30-day comment period on the open 
record, the EPA should allow for at least 45 days for public comment on 
the notice of proposed action.
    As with state plans, because of the types of sources and pollutants 
regulated under CAA section 111(d), the EPA reasonably anticipates that 
many of its proposed actions on a Federal plan will garner significant 
public interest from individuals, industry, states, and environmental 
and public health advocates. After completion of the comment period, 
the EPA then reviews all comments and determines whether, based on any 
comment, it should alter any components of the proposed Federal plan, 
or further augment the legal, policy, and technical rationales 
supporting that proposed action. Additionally, in the EPA's experience, 
comments may include technical information that was not in front of the 
Agency at the time of proposal. In the event technical data are 
received as part of comments on the proposed action, the EPA would then 
be required to review the new data and evaluate whether and how it 
should affect the EPA's proposed Federal plan. If a substantive comment 
is raised that merits reconsideration of any component in the proposed 
Federal plan, the EPA would need to repropose the plan.
    Once this review of comments is complete, the workgroup drafts and 
presents updated recommendations for internal review and decision 
making. Once the Agency completes its internal decision-making process, 
the workgroup then drafts a notice of final rulemaking, which includes 
responses to comments and any necessary record support, and final 
regulatory text as the Federal plan directly regulates certain 
designated facilities. The draft final action is then reviewed by 
relevant offices within the Agency prior to signature of the final rule 
promulgating the Federal plan. The EPA typically anticipates that the 
process of reviewing comments received, making corresponding changes to 
the rulemaking, and promulgating the final Federal plan to be between 4 
and 8 months.
    The duration of each step in this deliberative process varies. The 
amount of time the EPA needs to develop, propose, and finalize a 
Federal plan depends in part of the plan's complexity and the nature of 
the technical, policy, and legal issues that it implicates. For 
example, some states needing a Federal plan may have thousands, if not 
hundreds of thousands, of designated facilities that the EPA will need 
to establish standards of performance and implementation measures for, 
while other Federal plans may be significantly smaller in scale. 
Similarly, the amount of time needed to respond to comments and issue a 
final rule depends in part on the number and type of comments received 
on the EPA's proposed rulemaking. Additionally, the EPA reasonably 
anticipates that it may need to promulgate a Federal plan for multiple 
states at a given time, which can amplify the amount of time and work 
needed.
    The EPA has determined that 12 months reasonably accommodates the 
amount of time that the EPA needs to undertake the process, steps, and 
the considerations described above, while ensuring that an EG is 
expeditiously implemented. The process and steps described above that 
must be taken in promulgating a Federal plan highlight the fact that it 
would be unreasonable, if not an impossibility, to accomplish all of 
the steps in a legally and technically sound manner within a 6-month 
timeframe as required under subpart B.\17\
---------------------------------------------------------------------------

    \17\ While the EPA would have the discretion to promulgate a 
Federal plan more quickly than 12 months where specific 
circumstances allow (e.g., where there are no public comments on the 
proposed action), the EPA does not believe that would be reasonably 
possible to act significantly more quickly than 12 months in most 
cases.
---------------------------------------------------------------------------

    As with the EPA's proposal for its timeline to act on state plan 
submissions, 12 months is generally the period of time in which the EPA 
can both expeditiously act on a plan submission and ensure it is 
technically and legally sound. Therefore, this extension of time 
considers potential impacts to public health and welfare by giving the 
EPA a reasonably expeditious timeframe to promulgate a Federal plan 
that contains appropriate and protective emission reduction measures. 
This is especially true in the context of a Federal plan, where there 
is otherwise no state plan in place that is adequately protective of 
public health and welfare. If the EPA does not have adequate time to 
promulgate a Federal plan, its ability to ensure the plan contains 
appropriate measures to satisfactorily implement and enforce the 
standards necessary to comply with the EG may be compromised, which 
would in turn compromise the EPA's ability to ensure that the public 
health and welfare objectives of the EG are satisfied.
    The EPA is soliciting comment regarding its rationale for proposing 
a 12-month timeframe for the EPA's promulgation of a Federal plan, 
including whether there are reasons why the EPA should consider either 
a longer or a shorter timeframe (Comment A4-1). The EPA notes that this 
timeframe for the EPA's promulgation of a Federal plan would apply to 
any final EG regulating greenhouse gas emissions from sources in the 
oil and natural gas industry. 86 FR 63110, November 15, 2021.
    The EPA notes that a state may submit a plan to replace a Federal 
plan, even after the state plan submission deadline. However, once the 
EPA's authority and obligation to promulgate a Federal plan has been 
triggered, the act of a state submitting a plan alone does not abrogate 
the EPA's authority or obligatory timeline to promulgate a Federal 
plan. Only an approved state plan can supplant an already promulgated 
Federal plan or abrogate the EPA's responsibility to timely promulgate 
a Federal plan. Where a state submits a late plan, that may have the 
practical effect of concurrent timelines for promulgation of the 
Federal plan and the EPA's action on that late state plan; the EPA is 
not obligated to act on a late state plan prior to promulgating a 
Federal plan (40 CFR 60.27a(d)).
5. Timeline for Increments of Progress
    As part of the EPA's statutory responsibility to determine the BSER 
and related presumptive level of stringency, the EPA also determines in 
an EG ``the time within which compliance with standards of performance 
can be achieved.'' 40 CFR 60.22a(b)(5). As previously described, while 
it is the states' responsibility to provide standards of performance, 
those

[[Page 79189]]

standards of performance must reflect the presumptive level of 
stringency, unless a state chooses to account for RULOF for a 
particular source. Accordingly, states also have an obligation to 
include the corresponding compliance schedules as part of their state 
plans.\18\ Specifically the standards and compliance schedules ``shall 
be no less stringent than the corresponding emission guideline'' (40 
CFR 60.24a(c)) unless the RULOF provision is invoked (see section III.E 
of this preamble for discussion of proposed revisions to this 
provision). These compliance schedules are an integral component to 
realizing the emission reductions required by an EG to address the 
health and welfare impacts from a relevant source category and 
pollutant. The sooner that the standards are implemented, the more 
quickly the public health and welfare benefits of those reductions can 
be achieved.
---------------------------------------------------------------------------

    \18\ ``Each plan shall include standards of performance and 
compliance schedules.'' 40 CFR 60.24a(a).
---------------------------------------------------------------------------

    In the 1975 subpart B implementing regulations for CAA section 
111(d), the EPA required that any compliance schedule extending more 
than 12 months from the date required for submittal of the plan must 
include legally enforceable increments of progress to achieve 
compliance for each designated facility or category of facilities. 40 
CFR 60.24(e). In the 2019 promulgation of subpart Ba, the EPA modified 
this requirement to apply to any compliance schedule extending more 
than 24 months from the state plan submittal deadline to align with the 
extended timeline for state plan submissions. As discussed previously, 
the D.C. Circuit vacated the extended implementation timelines in 
subpart Ba, including the timeline for increments of progress.\19\
---------------------------------------------------------------------------

    \19\ Petitioners did not challenge, and the court did not 
vacate, the substantive requirement for increments of progress.
---------------------------------------------------------------------------

    Both subparts B and Ba require that standards of performance are 
implemented in a timely manner through provisions that require legally 
enforceable increments of progress if the compliance schedule extends 
beyond a specific time frame.\20\ In the definition of ``increments of 
progress'', the EPA provides requirements for legally enforceable 
increments of progress that states must include as a part of the 
standard of performance for a given designated facility.\21\ The use of 
increments of progress will vary from EG to EG based on the source 
category and type of regulation. There are also situations that may 
lead the EPA to limit or prohibit the use of increments of progress in 
a particular EG based on the nature of the BSER and presumptive 
standards, for example if the overall implementation timeline for a 
particular EG is relatively short. The EPA may alternatively provide 
presumptive increments of progress for a specific EG. The EPA will 
address these circumstances as appropriate in a specific EG, if the 
general requirements for increments of progress of subpart Ba need to 
be superseded.
---------------------------------------------------------------------------

    \20\ Subpart Ba at 40 CFR 60.24a(a) and 60.24a(d), and subpart B 
at 40 CFR 60.24(a) and 60.24(e)(1).
    \21\ 40 CFR 60.21a(h) defines ``increments of progress'' and 
requires states to include the following steps: (1) Submittal of a 
final control plan for the designated facility to the appropriate 
air pollution control agency; (2) Awarding of contracts for emission 
control systems or for process modifications, or issuance of orders 
for the purchase of component parts to accomplish emission control 
or process modification; (3) Initiation of on-site construction or 
installation of emission control equipment or process change; (4) 
Completion of on-site construction or installation of emission 
control equipment or process change; and (5) Final compliance.
---------------------------------------------------------------------------

    Because increments of progress are important to expeditiously 
addressing public health and welfare, the EPA is proposing to generally 
require that any compliance schedule extending more than 16 months from 
the date required for submittal of a state plan must include legally 
enforceable increments of progress to achieve compliance for each 
designated facility or category of facilities. This proposed time 
period accounts for the 60-day completeness review following a state 
plan submittal and the 12-month period for the state plan review 
proposed in this action, and further provides a 2-month buffer for the 
case of a state plan approval by the EPA (approval occurring 14 months 
after the plan submission deadline) before increments of progress are 
required. While this time period of 16 months is longer than the 12 
months previously provided under subpart B, it is significantly shorter 
than the 24 months vacated from subpart Ba. Additionally, the time 
between a state plan approval and the initiation of requirements for 
increments of progress is less than both the 8 months previously 
provided by subpart B and less than the 6-month buffer provided by the 
vacated subpart Ba timeline. Providing a 2-month buffer after approval 
of plans but before the increments of progress are required allows for 
the owner or operators of designated facilities reasonable time to 
initiate actions associated with the increments of progress before 
these are required.
    This proposed timeline for increments of progress will ensure 
standards of performance are implemented as expeditiously as possible 
so that the intended emission reductions are achieved, and the public 
health and welfare are protected. The EPA solicits comment on the 
proposed requirement that CAA 111(d) plans include increments of 
progress for any compliance schedule extending more than 16 months from 
the state plan submission deadline, and whether a different timeline 
for increments of progress should be considered. If another timeline is 
considered, the EPA requests specific comments on why this other 
timeline is more appropriate than 16 months (Comment A5-1).

B. Federal Plan Authority and Timeline Upon Failure To Submit a Plan

    In subpart Ba, the EPA incorporated language from CAA sections 
110(c)(1)(A) and 110(k)(1)(B) addressing the circumstances which 
trigger the EPA's authority for promulgating a Federal plan. 
Specifically, the EPA adopted language at 40 CFR 60.27a(c)(1), which 
requires the EPA to promulgate a Federal plan after it finds that a 
state fails to submit a required plan or plan revision or finds that 
the plan or plan revision does not satisfy the completeness criteria 
under 40 CFR 60.27a(g). The EPA is currently required, under 40 CFR 
60.27a(g), to determine whether completeness criteria have been met no 
later than 6 months after the date by which a state is required to 
submit a plan. These current provisions under subpart Ba taken together 
mean that, no later than 6 months after the state plan submission 
deadline has passed, the EPA must make a determination (often referred 
to as a ``finding of failure to submit'') as to whether any states have 
failed to submit a plan that meets the completeness criteria, and such 
finding is what triggers the EPA's obligation and timeline to 
promulgate a Federal plan.\22\
---------------------------------------------------------------------------

    \22\ Note that this procedure does not address circumstances 
when the EPA promulgates a Federal plan for states whose plan is 
disapproved. In these circumstances, the EPA's disapproval itself is 
the conclusion that the state plan submission was unsatisfactory and 
triggers the EPA's obligation and timeline to promulgate a Federal 
plan.
---------------------------------------------------------------------------

    The EPA acknowledges that in the CAA section 110 context, it has 
not always timely met its obligation to issue a finding of failure to 
submit, which further delays the timing for when the EPA promulgates a 
FIP to achieve the necessary emission reductions. Accordingly, the EPA 
finds that there is an opportunity to streamline the process in the CAA 
section 111(d) context to ensure that the emission reductions 
anticipated by the promulgation of the EG are realized in a timely way 
through

[[Page 79190]]

the promulgation of any necessary Federal plan. Rather than requiring 
the EPA to affirmatively issue a finding of failure to submit before 
the EPA's obligation to issue a Federal plan is triggered, the EPA is 
proposing that the EPA's timeline for issuing a Federal plan for any 
state that has not submitted a complete plan will be triggered by the 
state plan submission deadline, consistent with the requirements under 
subpart B. In this proposed change for subpart Ba, the EPA's obligation 
and timeline to promulgate a Federal plan starts the day after state 
plans are due. Accordingly, based on the proposed timeline described in 
section III.A.4 of this preamble above, the EPA is proposing that the 
EPA will have 12 months from the state plan deadline to promulgate a 
Federal plan for states that do not submit a plan. Note, the EPA is 
also proposing 12 months to promulgate a Federal plan for states whose 
plans are disapproved, but in those instances the EPA's obligation and 
timeline to provide a Federal plan is based on its disapproval of a 
state plan.
    As part of this proposal to trigger the timeline for the EPA to 
promulgate a Federal plan based on the state plan submission date 
instead of from when the EPA makes a finding of failure to submit, the 
EPA considered the value and role of such finding. A finding of failure 
to submit was intended to serve three purposes under subpart Ba, 
consistent with its purpose under CAA section 110: to notify the public 
of the status of state plan submissions (i.e., providing transparency 
to the process); to notify states that the EPA has not received a plan; 
and to formally start the clock for the EPA to promulgate a Federal 
plan. While these concepts are generally an important part of the 
overall Federal plan development and implementation process, the EPA 
finds that in the CAA section 111(d) context there is minimal value in 
coupling the notification aspects of a finding of failure with the 
initiation of the clock for the EPA to promulgate a Federal plan. These 
aspects are not inextricably linked to one another in that nothing 
necessitates a finding of failure to submit as the vehicle that 
triggers the timeline for the EPA to promulgate a Federal plan. By 
decoupling the timeline from the finding of failure to submit, the 
timeline to provide a Federal plan by the EPA can be triggered without 
the interim step and potential lag associated with a finding of failure 
to submit. By removing this interim process for promulgating a Federal 
plan, the EPA will be required to promulgate the Federal plan more 
expeditiously, and, in turn, overall implementation of the 
corresponding EG will be timelier. This proposal is also consistent 
with the spirit of the ALA decision, where the D.C. Circuit emphasized 
the need for implementation timelines that consider potential impacts 
on public health and welfare. By expeditiously and efficiently 
promulgating a Federal plan and by removing an interim step of a 
finding of failure, the EPA is further addressing the potential impacts 
of implementation times on health and welfare.
    The EPA notes that its proposal does not affect the EPA's 
obligation under CAA section 110(c) to promulgate a FIP within 2 years 
of making a finding that a state has failed to submit a complete SIP. 
In the case of the CAA section 110, the obligation for the EPA to first 
make a finding of failure to submit is derived from the statute, 
whereas nothing in CAA section 111(d) obligates the EPA to make such a 
finding before promulgating a Federal plan. CAA section 111(d)(1) 
directs the EPA to promulgate a process ``similar'' to that of CAA 
section 110, rather than a process that is identical. Therefore, the 
fact that a finding of failure to submit serves as the legal predicate 
for the EPA's obligation to issue a FIP under CAA section 110 does not 
mean that the EPA is also required to treat such a finding as a legal 
predicate for a Federal plan under CAA section 111(d). While a finding 
of failure to submit has value in notifying states and the public of 
the status of plans, the EPA does not find that it is integral to the 
timing of promulgating a Federal plan for states that do not submit 
plans. The EPA is therefore proposing to retain the requirement to make 
a finding of failure to submit, though this finding will no longer be 
considered the event that triggers the timeline for the EPA's issuance 
of a Federal plan. The EPA will make this finding by publishing a 
notice in the Federal Register anytime between the deadline for state 
plan submissions and the EPA's promulgation of a Federal plan. The EPA 
is soliciting comment on its proposal to link the authority and 
timeline for a Federal plan to the state plan deadline rather than to a 
finding of failure to submit (Comment B-1).
    This proposed change is consistent with the requirements that 
applied to the EPA's issuance of CAA section 111(d) plans under subpart 
B before subpart Ba was issued in 2019. In subpart B (i.e., the 
previously applicable implementing regulations for CAA section 111(d) 
EGs and currently applicable implementing regulations for CAA section 
129 EGs), the EPA's obligation to promulgate a Federal plan is 
triggered by the state plan deadline. The EPA is proposing to revise 40 
CFR 60.27a(c)(1) to adopt similar language from subpart B under 40 CFR 
60.27(d). The EPA is seeking comment on its proposal to link the 
authority and timeline for a Federal plan to the state plan deadline 
particularly based on experiences with the application of subpart B's 
Federal plan authority to CAA section 129 implementation and other 
Federal plans issued under CAA section 111(d) where the authority and 
timeline for a Federal plan are based on the state plan deadline 
(Comment B-2).

C. Requirement for Outreach and Meaningful Engagement

    The fundamental purpose of CAA section 111 is to reduce emissions 
from certain stationary sources that cause or significantly contribute 
to air pollution which may reasonably be anticipated to endanger public 
health or welfare. Therefore, a key consideration in the state's 
development of a state plan, in any significant plan revision,\23\ and 
in the EPA's development of a Federal plan pursuant to an EG 
promulgated under CAA section 111(d) is the potential impact of the 
proposed plan requirements on public health and welfare. A robust and 
meaningful public participation process during plan development is 
critical to ensuring that the full range of these impacts are 
understood and considered.
---------------------------------------------------------------------------

    \23\ Significant state plan revision includes, but is not 
limited to, any revision to standards of performance or to measures 
that provide for the implementation or enforcement of such 
standards.
---------------------------------------------------------------------------

    States often rely primarily on public hearings as the foundation of 
their public engagement in their state plan development process because 
a public hearing is explicitly required pursuant to the applicable 
regulations. The existing provisions in subpart Ba (40 CFR 60.23a(c) 
through (f)) detail the public participation requirements associated 
with the development of a state plan. Per these implementing 
regulations, states must provide certain notice of, and conduct one or 
more public hearings on, their state plan before such plan is adopted 
and submitted to the EPA for review and action.\24\ However, robust and 
meaningful public involvement in the development of a plan should 
sometimes go beyond the minimum requirement to hold a public hearing 
depending on who is most affected by and vulnerable to the impacts 
being addressed by the plan. The CAA section 111(d) program addresses 
existing

[[Page 79191]]

facilities; however, communities may not have had a voice when the 
source was originally constructed, or previous outreach may have 
focused largely on engaging the sources and the industry itself.
---------------------------------------------------------------------------

    \24\ States may cancel a public hearing if no request for one is 
received during the required notification period. 40 CFR 60.23a(e).
---------------------------------------------------------------------------

    In this action, the EPA is proposing to strengthen the public 
participation provisions in subpart Ba by requiring meaningful 
engagement with pertinent stakeholders in the state's development of a 
state plan, in any significant plan revision, and in the EPA's 
development of a Federal plan pursuant to an EG promulgated under CAA 
section 111(d). In particular, the EPA is proposing to add the 
requirement for meaningful engagement with pertinent stakeholders into 
40 CFR 60.23a(i) and 60.27a(f) and to define meaningful engagement and 
pertinent stakeholders in 40 CFR 60.21a.
    The EPA is proposing to define meaningful engagement as it applies 
to this subpart as ``. . . timely engagement with pertinent stakeholder 
representation in the plan development or plan revision process. Such 
engagement must not be disproportionate in favor of certain 
stakeholders. It must include the development of public participation 
strategies to overcome linguistic, cultural, institutional, geographic, 
and other barriers to participation to assure pertinent stakeholder 
representation, recognizing that diverse constituencies may be present 
within any particular stakeholder community. It must include early 
outreach, sharing information, and soliciting input on the state 
plan.'' The EPA is proposing to define that pertinent stakeholders ``. 
. . include, but are not limited to, industry, small businesses, and 
communities most affected by and vulnerable to the impacts of the plan 
or plan revision.''
    In particular, pertinent stakeholders include those who are most 
affected by and vulnerable to the health or environmental impacts of 
pollution from the designated facilities addressed by the plan or plan 
revision. Increased vulnerability of communities may be attributable 
to, among other reasons, both an accumulation of negative and lack of 
positive environmental, health, economic, or social conditions within 
these populations or communities. Examples of such communities have 
historically included, but are not limited to, communities of color 
(often referred to as ``minority'' communities), low-income 
communities, Tribal and indigenous populations, and communities in the 
United States that potentially experience disproportionate health or 
environmental harms and risks as a result of greater vulnerability to 
environmental hazards. Sensitive populations (e.g., infants and 
children, pregnant women, the elderly, individuals with disabilities 
exacerbated by environmental hazards) may also be most affected by and 
vulnerable to the impacts of the plan or plan revision depending on the 
pollutants or other factors addressed by an EG. An example of greater 
vulnerability to environmental hazards more generally is populations 
lacking the resources and representation to combat the effects of 
climate change, which could include populations exposed to greater 
drought or flooding, or damaged crops, food, and water supplies.
    Tribal communities or communities in neighboring states may also be 
impacted by a state plan and, if so, should be identified as pertinent 
stakeholders. In addition, to the extent a designated facility would 
qualify for a less stringent standard through consideration of RULOF as 
described in section III.E.8 of this preamble, the state, must identify 
and engage with the communities most affected by and vulnerable to the 
health and environmental impacts from the designated facility 
considered in a state plan for RULOF provisions. The EPA expects that 
the inclusion of the definitions of meaningful engagement and pertinent 
stakeholders in subpart Ba provide the States specificity around the 
meaningful engagement requirement while allowing for flexibility in the 
implementation of such requirements.
    The requirement for meaningful engagement will ensure that states 
share relevant information with and solicit input from pertinent 
stakeholders at critical junctures during plan development, which helps 
ensure that a plan is adequately addressing the potential impacts to 
public health and welfare that are the core concern of CAA section 111. 
Meaningful engagement can provide valuable information regarding health 
and welfare impacts experienced by the public (e.g., reoccurring 
respiratory illness, missed work or school days due to illness 
associated with pollution, and other impacts) and allow regulatory 
authorities to explore additional options to improve public health and 
welfare. Because the CAA section 111(d) program is designed to address 
widely varying types of air pollutants that may have very different 
types of impacts, from highly localized to regional or global, ensuring 
fair and balanced participation among a broad set of pertinent 
stakeholders is critical. Early engagement is especially important for 
those stakeholders directly impacted by a particular state plan. In 
particular, the processes for meaningful engagement must allow for fair 
and balanced participation and must allow communities most affected by 
and vulnerable to the impacts of a plan an opportunity to be informed 
of and weigh in on that plan.
    The EPA's authority for proposing to strengthen the public 
participation provisions by requiring meaningful engagement is provided 
by the authority of both CAA sections 111(d) and 301(a)(1). Under CAA 
section 111(d), one of the EPA's obligations is to promulgate a process 
``similar'' to that of CAA section 110 under which states submit plans 
that implement emission reductions consistent with the BSER. CAA 
section 110(a)(1) requires states to adopt and submit SIPs after 
``reasonable notice and public hearings.'' The Act does not define what 
constitutes ``reasonable notice and public hearings'' under CAA section 
110, and therefore the EPA may reasonably interpret this requirement in 
promulgating a process under which states submit state plans.
    Subpart Ba currently includes certain requirements for notice and 
public hearing under 40 CFR 60.23a(c) through (f). The notice 
requirements include prominent advertisement to the public of the date, 
time, and place of the public hearing, 30 days prior to the date of 
such hearing, and the advertisement requirement may be satisfied 
through the internet. Id. at (d). A state may choose to cancel a public 
hearing if no request for one is received during the required 
notification period.
    The EPA recognizes that a fundamental purpose of the Act's notice 
and public hearing requirements is for all affected members of the 
public, and not just a particular subset, to participate in pollution 
control planning processes that impact their health and welfare.\25\ 
Accordingly, in order for a meaningful opportunity for the public to 
participate in hearings over CAA section 111(d) state plans, the notice 
of such hearings must be reasonably adequate in its ability to reach 
affected members of the public. Many states provide for notification of 
public engagement through the internet, however there cannot be a 
presumption that such notification is adequate in reaching all those 
who are impacted by a CAA section 111(d) state plan and would

[[Page 79192]]

benefit the most from participating in a public hearing. For example, 
data shows that as many as 30 million Americans do not have access to 
broadband infrastructure that delivers even minimally sufficient 
speeds, and that 25 percent of adults ages 65 and older report never 
going online.\26\ Examples of prominent advertisement for a public 
hearing, in addition to notice through the internet, may include notice 
through newspapers, libraries, schools, hospitals, travel centers, 
community centers, places of worship, gas stations, convenience stores, 
casinos, smoke shops, Tribal Assistance for Needy Families offices, 
Indian Health Services, clinics, and/or other community health and 
social services as appropriate for the emission guideline addressed.
---------------------------------------------------------------------------

    \25\ Consistent with this principle of providing reasonable 
notice under the CAA, under programs other than CAA section 111(d), 
the EPA similarly requires states to provide specific notice to an 
area affected by a particular proposed action. See, e.g., 40 CFR 
51.161(b)(1) requiring specific notice for an area affected by a 
state or local agency's analysis of the effect on air quality in the 
context of the New Source Review program; 40 CFR 51.102(d)(2), (4), 
and (5) requiring specific notice for an area affected by a CAA 
section 110 SIP submission.
    \26\ FACT SHEET: Biden-Harris Administration Mobilizes Resources 
to Connect Tribal Nations to Reliable, High-Speed internet (December 
22, 2021). https://www.whitehouse.gov/briefing-room/statements-releases/2021/12/22/fact-sheet-biden-harris-administration-mobilizes-resources-to-connect-tribal-nations-to-reliable-high-speed-internet/; 7 percent of Americans don't use the internet. Who 
are they? Pew Research Center (April 2, 2021), https://www.pewresearch.org/fact-tank/2021/04/02/7-of-americans-dont-use-the-internet-who-are-they/.
---------------------------------------------------------------------------

    Given the public health and welfare objectives of CAA section 
111(d) in regulating specific existing sources, it is reasonable to 
require meaningful engagement as part of the state plan development 
public participation process in order to further these objectives. 
Additionally, CAA section 301(a)(1) provides that the EPA is authorized 
to prescribe such regulations ``as are necessary to carry out [its] 
functions under [the CAA].'' The proposed meaningful engagement 
requirement would effectuate the EPA's function under CAA section 
111(d) in prescribing a process under which states submit plans to 
implement the statutory directives of this section. Therefore, the EPA 
is proposing additional meaningful engagement requirements in subpart 
Ba to ensure that pertinent stakeholders have reasonable notice of 
relevant information and the opportunity to participate in the state 
plan development throughout the process.
    During the state plan process, the EPA expects states to identify 
the pertinent stakeholders, utilizing additional guidance that will be 
provided by applicable EG. In particular, the EG will provide 
information on impacts of designated pollutant emissions that EPA 
expects will assist the states in the identification of their pertinent 
stakeholders. As part of efforts to ensure meaningful engagement, 
states will share information and solicit input on plan development and 
on any accompanying assessments. This engagement will help ensure that 
plans achieve the appropriate level of emission reductions, that 
communities most affected by and vulnerable to the health and 
environmental impacts from the designated facilities share in the 
benefits of the state plan, and that these communities are protected 
from being adversely impacted by the plan. In addition, the EPA 
recognizes that emissions from the designated facilities could cross 
state and/or Tribal borders, and therefore may affect communities in 
neighboring states or Tribal lands. The EPA is soliciting comment on 
the proposed definitions of pertinent stakeholders and of meaningful 
engagement (Comment C-1) and on the proposed meaningful engagement 
requirement (Comment C-2). The EPA is also soliciting comment on how 
meaningful engagement should apply to pertinent stakeholders inside and 
outside of the borders of the state that is developing a state plan, 
for example if a state should coordinate with the neighboring state 
and/or Tribes for outreach or directly contact the affected communities 
(Comment C-3).
    To ensure that a robust and meaningful public engagement process 
occurs as the states develop their CAA section 111(d) plans, the EPA is 
also proposing to amend the requirements in 40 CFR 60.27a(g) to include 
as part of the completeness criteria the requirements for states to 
demonstrate in their plan submittal how they provided meaningful 
engagement with the pertinent stakeholders. The state would be required 
to provide, in their plan submittal, evidence of meaningful engagement, 
including a list of the pertinent stakeholders, a summary of engagement 
conducted, and a summary of the stakeholder input provided. The EPA 
would evaluate the states' demonstrations regarding meaningful public 
engagement as part of its completeness evaluation of a state plan 
submittal. If a state plan submission does not meet the required 
elements for notice and opportunity for public participation, including 
requirements for meaningful engagement, this may be grounds for the EPA 
to find the submission incomplete or to disapprove the plan. The EPA is 
soliciting comment on the proposed inclusion of meaningful engagement 
in completeness criteria for state plan submission, (Comment C-4), as 
well as requesting examples or models of meaningful engagement 
performed by states, including best practices and challenges (Comment 
C-5).
    The EPA further notes that the implementing regulations allow a 
state to request the approval of different state procedures for public 
participation pursuant 40 CFR 60.23a(h). The EPA proposes to require 
that such alternate state procedures do not supersede the meaningful 
engagement requirements, so that a state would still be required to 
comply with the meaningful participation requirements even if they 
apply for a different procedure than the other public notice and 
hearing requirements under 40 CFR 60.23a. The EPA is also proposing 
under 40 CFR 60.23a(i)(1) that states may apply for, and the EPA may 
approve, alternate meaningful engagement procedures if, in the 
judgement of the Administrator, the procedures, although different from 
the requirements of this subpart, in fact provide for adequate notice 
to and meaningful participation of the public. The EPA is soliciting 
comment on the distinction between request for approval of alternate 
state procedures to meet public notice and hearing requirements from 
those to meet meaningful engagement, and comment on the consideration 
of request for approval of alternate meaningful engagement procedures 
(Comment C-6).

D. Regulatory Mechanisms for State Plan Implementation

    CAA section 111(d)(1) requires the EPA to promulgate regulations 
that establish a procedure ``similar'' to that provided by CAA section 
110 for each state to ``submit to [the EPA] a state plan which . . . 
establishes standards of performance . . . and . . . provides for the 
implementation and enforcement of such standards.'' The EPA reasonably 
interprets this provision, particularly the ``similar'' clause, as 
referring to all the procedural provisions provided in CAA section 110 
which serve the same purposes of providing useful flexibilities for 
states' and EPA's actions that help ensure emission reductions are 
appropriately and timely implemented.
    The EPA is proposing to incorporate five regulatory mechanisms as 
amendments to the implementing regulations under 40 CFR part 60, 
subpart Ba, governing the processes under which states submit plans and 
the EPA acts on those plans. The regulatory mechanisms that are being 
proposed in this action include: (1) partial approval and disapproval 
of state plans by the EPA; (2) conditional approval of state plans by 
the EPA; (3) parallel processing of plans by the EPA and states; (4) a 
mechanism for a state plan call by the EPA of previously approved state 
plan revisions; and (5) an error correction mechanism for the EPA to 
revise its

[[Page 79193]]

prior action on a state plan.\27\ These mechanisms update the 
implementing regulations to better align with the flexible procedural 
tools that Congress added into section 110 of the CAA in the 1990 
Amendments. The EPA is proposing to adopt and incorporate the 
mechanisms into subpart Ba as the EPA has interpreted and applied them 
in the context of CAA section 110.
---------------------------------------------------------------------------

    \27\ These regulatory mechanisms were proposed to be added to 
subpart B in 2015 and largely received support from states, the 
public, and stakeholders, but were never finalized. 80 FR 64965 
(October 23, 2015).
---------------------------------------------------------------------------

    The interpretation that CAA section 111(d)(1) authorizes the EPA to 
adopt procedures ``similar'' to those under CAA section 110 for the 
overall state plan process, and not just the initial plan submission 
process, is strengthened by the provisions in CAA section 111(d)(2), 
which provide that the EPA has the ``same'' authority to enforce state 
plan requirements as it does for SIPs under CAA sections 113 and 114, 
and to promulgate a Federal plan for a state that has failed to submit 
a satisfactory plan, as under CAA section 110(c). This is because, read 
together, CAA section 111(d)(1) and (2) provide the set of essential 
procedural requirements for state and Federal plans that generally 
reflect the essential procedural requirements for SIPs and FIPs in 
section 110.\28\ In that context, it is reasonable to read CAA section 
111(d)(1) as authorizing the EPA to promulgate procedures for section 
111(d) that are comparable to CAA section 110 procedures for the 
overall state plan process, which is associated with those 
requirements.
---------------------------------------------------------------------------

    \28\ Compare CAA section 111(d)(1) (requiring states to submit 
state plans that include specified types of measures that, in turn, 
meet minimum EPA requirements) and section 111(d)(2) (indicating 
that the EPA must review and approve or disapprove state plans, 
requiring the EPA to promulgate a Federal plan if the state does not 
submit a satisfactory plan, authorizing the EPA to enforce state 
plan measures) with section 110(a)(1)-(2) (requiring states to 
submit SIPs that include specified types of measures that in turn 
meet minimum EPA requirements), section 110(k) (requiring the EPA to 
review and approve or disapprove SIPs), section 110(c) (requiring 
the EPA to promulgate a FIP if the state does not submit a plan or 
the EPA disapproves the state plan) and 113(a)(1) (authorizing the 
EPA to enforce SIP measures).
---------------------------------------------------------------------------

    The availability of these five regulatory mechanisms would 
streamline the state plan review and approval process, accommodate 
variable state processes, facilitate cooperative federalism, further 
protect public health and welfare, and generally enhance the 
implementation of the CAA section 111(d) program. Together, these 
mechanisms provide greater flexibility, reduce processing time, and 
have proven to be very useful tools for the review and processing of 
CAA section 110 SIPs. The EPA is seeking comment from all stakeholders 
on the incorporation of these five proposed mechanisms into subpart Ba 
(Comment D-1).
1. Partial Approval and Disapproval
    The EPA is proposing a provision similar to that under CAA section 
110(k)(3) for the EPA to partially approve and partially disapprove 
severable portions of a state plan submitted under CAA section 111(d). 
Under CAA section 110(k)(3), ``[i]f a portion of the plan revision 
meets all the applicable requirements of this chapter, the 
Administrator may approve the plan revision in part and disapprove the 
plan revision in part. The plan revision shall not be treated as 
meeting the requirements of this chapter until the Administrator 
approves the entire plan revision as complying with the applicable 
requirements of this chapter.'' Subpart Ba currently authorizes the EPA 
to ``approve or disapprove [the state] plan or revision or each portion 
thereof.'' (40 CFR 60.27a(b)). The EPA proposes to revise this 
provision so that it is similar to CAA section 110(k)(3), providing 
clarity on the EPA's authority to partially approve plans and the 
circumstances under which it may be used.
    Pursuant to this proposal, the EPA may partially approve or 
partially disapprove a state plan when portions of the plan are 
approvable, but a discrete, severable portion is not. In such cases, 
the purposes of a CAA section 111(d) EG would be better served by 
allowing the state to move forward with implementing those portions of 
the plan that are approvable, rather than to disapprove the full plan. 
This mechanism is consistent with the ALA decision's emphasis on 
ensuring timely mitigation of harms to public health and welfare, as 
problematic parts of a state plan submission would not stall the 
implementation of emission reductions at designated facilities for 
which a portion of a plan could be approved, thus efficiently reducing 
the time from EG promulgation to implementation of emission reductions 
at those facilities.
    As proposed, the portion of a state plan that the EPA may partially 
approve must be ``severable.'' A portion is severable when: (1) the 
approvable portion of the plan does not depend on or affect the portion 
of the plan that cannot be approved, and (2) approving a portion of the 
plan without approving the remainder does not alter the approved 
portion of a state plan in any way that renders it more stringent than 
the state's intent. See Bethlehem Steel v. Gorsuch, 742 F.2d 1028, 1034 
(7th Cir. 1984). The EPA's proposed decision to partially approve and 
partially disapprove a plan must go through notice and comment 
rulemaking. As a result, the public will have an opportunity to submit 
comment on the appropriateness and legal application of this mechanism 
on a particular state plan submission. A partial disapproval of a plan 
submission would have the same legal effect as a full disapproval for 
purposes of the EPA's authority under CAA section 111(d)(2)(A) to 
promulgate, for the partially disapproved portion of the plan, a 
Federal plan for the state. See section III.A.4 of this preamble for 
proposed timelines for promulgation of a Federal plan. If the EPA does 
promulgate a Federal plan for a partially disapproved portion, the 
state may, at any time, submit a revised plan to replace that portion. 
If the state does so, and the EPA approves the revised plan, then the 
EPA would withdraw the Federal plan for that state.
    This partial approval/disapproval mechanism also enables states to 
submit, and authorizes the EPA to approve or disapprove, state plans 
that are partial in nature and to address only certain elements of a 
broader program. For example, with this mechanism, states would be able 
to submit partial plans intended to replace discrete portions of a 
Federal plan, where appropriate. As proposed, partial submittals must 
meet all completeness criteria.
    The EPA is soliciting comment on the reasonableness and 
appropriateness of this proposed partial approval/disapproval mechanism 
as described in this section (Comment D1-1).
2. Conditional Approval
    The EPA is proposing a mechanism analogous to the authority under 
CAA section 110(k)(4) to grant the EPA the ability to conditionally 
approve a state plan under CAA section 111(d). Under CAA section 
110(k)(4), ``[t]he Administrator may approve a plan revision based on a 
commitment of the State to adopt specific enforceable measures by a 
date certain, but not later than 1 year after the date of approval of 
the plan revision. Any such conditional approval shall be treated as a 
disapproval if the State fails to comply with such commitment.'' This 
provision authorizes the EPA to conditionally approve a plan submission 
that substantially meets the requirements of an EG but that requires 
some additional, specified revisions to be fully

[[Page 79194]]

approvable. For the EPA to conditionally approve a submission, the 
state Governor or their designee must commit to adopt and submit 
specific enforceable provisions to remedy the stipulated plan 
deficiency. The provisions required to be submitted by the state 
pursuant to a conditional approval would be treated as an obligation to 
submit a plan revision and be subject to the same processes and 
timeframes for the EPA action as other plan revisions (e.g., 
completeness determination, approval and/or disapproval). The EPA 
proposes that the state be required to commit to adopt and submit the 
necessary revisions to the EPA no later than 1 year from the effective 
date of the conditional approval.
    As proposed, if the state fails to meet its commitment to submit 
the measures within 1 year, the conditional approval automatically 
converts to a disapproval. If a conditionally approved state plan 
converts to a disapproval due to either the failure of the state to 
submit the required measures or if the EPA finds the submitted measures 
to be unsatisfactory, such disapproval would be grounds for 
implementation of a Federal plan under CAA section 111(d)(2)(A). The 
EPA will publish a notice in the Federal Register and, if appropriate, 
on the public website established for the EG notifying the public that 
the conditional approval is converted to a disapproval. As described in 
section III.A.4 of this preamble, the EPA will promulgate a Federal 
plan within 12 months of state's failure to submit the required 
measures or the EPA's disapproval of measures submitted to address the 
conditional approval.
    Incorporating this mechanism under the implementing regulations for 
CAA section 111(d) would have the benefit of allowing a state with a 
substantially complete and approvable program to begin implementing it, 
while also promptly making specific changes that ensure it fully meets 
the requirements of CAA section 111(d) and of the applicable EGs.
    The EPA solicits comment on this proposed mechanism, including the 
timeframe for state adoption and submission of revisions to address the 
deficiencies that serve as the basis for the conditional approval 
(Comment D2-1), and the process and timing for promulgating a Federal 
plan if approvable revisions are not submitted (Comment D2-2).
3. Parallel Processing
    The EPA is proposing to include a mechanism similar to that for 
SIPs under 40 CFR part 51 appendix V, section 2.3.1., for parallel 
processing a plan that does not meet all of the administrative 
completeness criteria under 40 CFR 60.27a(g)(2). This streamlined 
process allows the EPA to propose approval of such a plan in parallel 
with the state completing its process to fully adopt the plan in 
accordance with the required administrative completeness criteria, and 
then allows the EPA to finalize approval once those criteria have been 
fully satisfied.
    In order to parallel process a plan, the EPA proposes to require 
that the state must meet the following requirements. The state must 
submit the proposed plan with a letter requesting the EPA propose 
approval through parallel processing in lieu of the letter required 
under 40 CFR 60.27a(g)(2)(i). Further, a state would be temporarily 
exempt from the administrative completeness criteria as defined by 40 
CFR 60.27a(g)(2) regarding legal adoption of the plan (40 CFR 
60.27a(g)(2)(ii) and (v)) and from public participation criteria (40 
CFR 60.27a(g)(2)(vi), (vii), and (viii)), including the meaningful 
engagement criteria proposed in this action (see III.C of this preamble 
above, proposed at 40 CFR 60.27a(g)(2)(ix)), as appropriate. However, 
as with parallel processing for SIPs under 40 CFR part 51 appendix V, 
the EPA proposes to require that, in lieu of these administrative 
criteria, the state must include a schedule for final adoption or 
issuance of the plan and a copy of the proposed/draft regulation or the 
document indicating the proposed changes to be made, where applicable. 
Note that a proposed plan submitted for parallel processing must still 
meet all the criteria for technical completeness as defined by 40 CFR 
60.27a(g)(3) and meet all other administrative completeness criteria as 
defined by 40 CFR 60.27a(g)(2). If these conditions are met, the 
submitted plan may be considered for purposes of the EPA's initial plan 
evaluation and proposed rulemaking action.
    The exceptions to the administrative criteria described above only 
apply to the EPA's proposed action. If the EPA has proposed approval 
through parallel processing, the state must still submit a fully 
adopted and final plan that meets all of the completeness criteria 
under 40 CFR 60.27a(g) before the EPA can finalize its approval, 
including the requirements for legal adoption and public engagement. If 
the state finalizes and submits to the EPA a plan that includes changes 
from the plan the EPA has proposed for approval under parallel 
processing, the EPA will evaluate those changes for significance. If 
any such changes are found by the EPA to be significant (e.g., changes 
to the stringency or applicability of a particular standard of 
performance), then the state submittal would be treated as an initial 
submission and the EPA would be required to re-propose its action on 
the final plan and to provide an opportunity for public comment.
    Note further that once the state plan submission deadline passes, 
the EPA retains the authority to initiate development of a Federal plan 
at any time for a state that has not submitted a complete plan, even if 
a state has requested parallel processing and the EPA has proposed an 
action. The EPA intends to continue working collaboratively with states 
who are in the process of adopting and submitting state plans but notes 
that states must remain mindful of regulatory deadlines for CAA section 
111(d) plan submissions even when seeking to use the parallel 
processing mechanism.
    The EPA is requesting comment on the reasonableness of its proposal 
to add a parallel processing mechanism to subpart Ba (Comment D3-1), 
including the conditions under which a state may request parallel 
processing (Comment D3-2) and the conditions under which the EPA may 
allow for parallel processing (Comment D3-3).
4. State Plan Call
    Under CAA section 110(k)(5), the EPA may call for a revision of a 
state plan ``[w]henever the Administrator finds that the . . . plan . . 
. is substantially inadequate to . . . comply with any requirement of 
[the Act].'' The EPA is proposing to add a mechanism analogous to this 
``SIP call'' provision to subpart Ba under CAA section 111(d) which 
would authorize the EPA to find that a previously approved state plan 
does not meet the applicable requirements of the CAA or of the relevant 
EG and to call for a plan revision. This mechanism is a useful tool for 
ensuring that state plans continue to meet the requirements of the EGs 
and of the CAA over time. This is particularly important because EGs 
that achieve emission reductions from specific source categories may be 
implemented over many years.
    The proposed state plan call mechanism would permit EPA to require 
a state to submit a revised state plan whenever it finds an approved 
CAA section 111(d) plan is ``substantially inadequate'' to comply with 
applicable requirements of the statute, the implementing regulations, 
and/or the applicable EG. The EPA finds that a plan call would be 
generally appropriate under two circumstances.

[[Page 79195]]

The first is when legal or technical conditions arise after the EPA's 
approval of a state plan that undermines the basis for the approval. 
Under these conditions, the approved plan could be considered 
substantially inadequate and require revision to align with current 
conditions. For example, a court decision subsequent to the approval of 
a plan may render that plan substantially inadequate to meet applicable 
requirements resulting from the change in law.\29\ Additionally, the 
EPA may determine that technical conditions, such as design 
assumptions, about control measures that were the basis for a state 
plan approval later prove to be inaccurate, meaning that the plan would 
be substantially inadequate to achieve the emission reductions required 
by the EG and therefore the plan should be revised.\30\ In response to 
a state plan call under such legal or technical circumstances, a state 
would be required to submit a plan revision so that the state plan is 
substantially adequate to meet applicable requirements, such as by 
updating a provision affected by a court decision or by revising 
control measures to achieve the required emission reductions.
---------------------------------------------------------------------------

    \29\ An example of this circumstance in the context of CAA 
section 110 is the 2015 ``SSM SIP Call'', which required states to 
correct previously approved SIP provisions based on subsequent court 
decisions regarding startup, shutdown, and malfunctions (SSM) 
operations. 80 FR 33840, June 12, 2015.
    \30\ For example, the 1998 ``NOX SIP call'' required 
states to submit SIP revisions addressing NOX emissions 
found, after SIP approvals, to significantly impact the attainment 
of air quality standards in other states due to atmospheric 
transport. 63 FR 57356, October 27, 1998.
---------------------------------------------------------------------------

    The second circumstance under which the EPA could apply the state 
plan call mechanism is when a state fails to adequately implement an 
approved state plan. In this case, the approved state plan facially 
meets all applicable requirements, but a failure in implementation 
(e.g., due to changes in available funding, resources, or legal 
authority at the state level) renders the plan substantially inadequate 
to meet the requirements of the EG and CAA section 111(d). In this 
circumstance, a state, in response to a plan call, would either be 
required to submit a plan revision that aligns with the state's actual 
implementation of the plan or to provide demonstration that the plan is 
being adequately implemented as approved.
    Under the proposed state plan call provision, consistent with the 
SIP call process under CAA section 110(k)(5), after the EPA finds that 
a state's approved section 111(d) plan is substantially inadequate to 
comply with applicable requirements, the EPA shall publish notice of 
its finding in the Federal Register. The plan call notice will identify 
the plan inadequacies leading to the plan call and establish reasonable 
deadlines for submission of plan revisions and/or for demonstration of 
appropriate implementation of the approved plan.\31\
---------------------------------------------------------------------------

    \31\ If the EPA has promulgated a Federal plan to implement an 
EG that does not contain the deficiency, a potential corrective 
action could include a plan revision to adopt the Federal plan.
---------------------------------------------------------------------------

    The EPA is further proposing to require that any deadline it 
establishes for the submission of a state plan revision shall not 
exceed 12 months after the date of the call for plan revisions. The EPA 
proposes to determine that, while this period is less than the time 
allotted for the submission of a full state plan (proposed in III.A.1 
of this preamble above as 15 months), it provides a reasonable 
timeframe for public outreach and state processes while ensuring the 
deficiency is expeditiously corrected to address any outstanding public 
health and welfare concerns associated with a deficient plan, 
consistent with the ALA decision. The deadline for submission of state 
plan revisions to address the identified inadequacies will start when 
notice of the action is published in the Federal Register.
    Any failure of a state to submit necessary revisions by the date 
set in the call for state plan revisions constitutes a failure to 
submit a required plan submission. Therefore, pursuant to CAA section 
111(d)(2)(A), the EPA would have the authority to promulgate a Federal 
plan for the state within 12 months, as proposed in section III.A.4 of 
this preamble, after the necessary revisions are due. If the state 
fails to submit a plan revision, to make an adequate demonstration 
within the prescribed time, or if the EPA disapproves a submission, 
then the EPA will promulgate a Federal plan addressing the deficiency 
for sources within that state.\32\
---------------------------------------------------------------------------

    \32\ If the EPA has promulgated a Federal plan to implement an 
EG that does not contain the deficiency, the EPA could apply the 
existing Federal plan to the state if appropriate.
---------------------------------------------------------------------------

    The EPA solicits comment on the proposed state plan call mechanism 
as described in this section (Comment D4-1), including the 
circumstances of use (Comment D4-2), the process of notification 
(Comment D4-3), and the proposed maximum deadline for submission of 
plan revisions (Comment D4-4).
5. Error Correction
    Under CAA section 110(k)(6), the EPA may, on its own, revise its 
prior action on a state plan under certain circumstances: ``[w]henever 
the Administrator determines that the Administrator's action approving, 
disapproving, or promulgating any plan or plan revision (or part 
thereof) . . . was in error, the Administrator may in the same manner 
as the approval, disapproval, or promulgation revise such action as 
appropriate without requiring any further submission from the State.'' 
The EPA is proposing to add a mechanism analogous to this `error 
correction' provision to subpart Ba under CAA section 111(d).
    This error correction provision would authorize the EPA to revise 
its prior action when the EPA determines its own action on the state 
plan was in error. Specifically, this provision would allow the EPA to 
revise its prior action in the same manner as used for the original 
action (e.g., through rulemaking) without requiring any further 
submissions from the state. In this manner, the proposed error 
correction mechanism does away with unnecessary burdens on states to 
respond to an error made by the EPA, such as submitting a plan revision 
and the public participation related requirements under 40 CFR 60.23a 
(e.g., providing notice and holding a public hearing).
    CAA section 110(k)(6) is phrased broadly, and its legislative 
history makes clear that it ``explicitly authorizes EPA on its own 
motion to make a determination to correct any errors it may make in 
taking any action, such as . . . approving or disapproving any plan.'' 
See House Report No. 101-490 at 220. The circumstances that may give 
rise to an error that the EPA may correct with this mechanism depend on 
the specific facts and plan at issue, and the use of the mechanism is 
more appropriately justified on a case-by-case basis. The EPA has 
previously used CAA section 110(k)(6) for correction of technical or 
clerical errors,\33\ for removal of substantive provisions from an EPA-
approved state plan that did not relate to attainment of the NAAQS or 
other CAA program,\34\ and when EPA, in error and without knowledge, 
approved a SIP that did not meet applicable requirements at the time of

[[Page 79196]]

approval.\35\ These examples are not the only circumstances when the 
EPA has used CAA section 110(k)(6) in the past and do not limit the EPA 
for circumstances of error correction under section 111(d) in the 
future.
---------------------------------------------------------------------------

    \33\ For example, see 74 FR 57051, November 3, 2009, for 
correction of clerical and typographical errors in a portion of an 
Arizona SIP.
    \34\ For example, see 85 FR 73636, November 19, 2020, for 
removal of an air pollution nuisance rule from an Ohio SIP and 86 FR 
24505, May 7, 2021, for removal of asbestos requirements from a 
Kentucky SIP.
    \35\ For example, see 86 FR 23054, April 30, 2021, for error 
correction with respect to Kentucky's ``good neighbor obligations'' 
and SIP disapproval.
---------------------------------------------------------------------------

    While the EPA maintains that this proposed error mechanism would be 
available for acting on state plans when appropriate, the EPA expects 
that it will work with states, as it has done previously in the SIP 
context, to correct any deficiencies in their plans. The EPA is 
soliciting comment on this error correction mechanism (Comment D5-1) 
and the conditions under which it may be applied (Comment D5-2). The 
EPA is seeking comment on these five proposed mechanisms from all 
stakeholders.

E. Remaining Useful Life and Other Factors (RULOF) Provisions

    The EPA is proposing revisions to 40 CFR 60.24a(e) in order to 
provide clear requirements for the consideration of RULOF in state 
plans that propose to set a less stringent standard for a particular 
source.\36\ This provision currently allows states to consider RULOF to 
apply a less stringent standard of performance for a designated 
facility or class of facilities if they demonstrate one of the three 
following circumstances: unreasonable cost of control resulting from 
plant age, location, or basic process design; physical impossibility of 
installing necessary control equipment; or other factors specific to 
the facility (or class of facilities) that make application of a less 
stringent standard or final compliance time significantly more 
reasonable. The implementing regulations also specify that, absent such 
a demonstration, the state's standards of performance must be ``no less 
stringent than the corresponding'' EG. 40 CFR 60.24a(c). This proposal 
would largely retain this provision, including the three circumstances 
under which a less stringent standard of performance may be applied, 
and provide further clarification of what a state must demonstrate in 
order to invoke RULOF when submitting a state plan. Specifically, the 
proposal would require the state to demonstrate that a particular 
facility cannot reasonably achieve the degree of emission limitation 
achievable through application of the BSER, based on one or more of the 
three circumstances. The EPA is also proposing to clarify the third 
circumstance by specifying that a state may apply a less stringent 
standard if the state demonstrates, to the EPA's satisfaction, that 
factors specific to the facility are fundamentally different than those 
considered by the EPA in determining the BSER.
---------------------------------------------------------------------------

    \36\ The court's vacatur in ALA did not impact 40 CFR 60.24a(e).
---------------------------------------------------------------------------

    Section III.E.1 of this preamble describes the statutory and 
regulatory background, and section III.E.2 of this preamble explains 
the agency's rationale for its revisions. Sections III.E.3-8 of this 
preamble describe further proposed additions to the RULOF provision in 
cases where states seek to apply a standard that is less stringent than 
the degree of emission limitation achievable through application of the 
BSER. These proposed additions include requirements for the calculation 
of a less stringent standard, contingency requirements in cases where 
an operating condition is the basis for RULOF, and the consideration of 
impacted communities. Finally, section III.E.9 of this preamble 
describes proposed revisions to address cases where states seek to 
apply a more stringent standard.
1. Statutory and Regulatory Background
    Under CAA section 111(d), the EPA is required to promulgate 
regulations under which states submit plans establishing standards of 
performance for designated facilities. While states establish the 
standards of performance, there is a fundamental obligation under CAA 
section 111(d) that such standards reflect the degree of emission 
limitation achievable through the application of the BSER, as 
determined by the EPA. As previously described, this obligation derives 
from the definition of ``standard of performance'' under CAA section 
111(a)(1). The EPA identifies the degree of emission limitation 
achievable through application of the BSER as part of its EG. 40 CFR 
60.22a(b)(5). While standards of performance must generally reflect the 
degree of emission limitation achievable through application of the 
BSER, CAA section 111(d)(1) also requires that the EPA regulations 
permit the states, in applying a standard of performance to a 
particular designated facility, to take into account the designated 
facility's RULOF.
    The 1970 version of CAA section 111(d) made no reference to the 
consideration of RULOF in the context of standards for existing 
sources. In the 1975 regulations promulgating subpart B, however, the 
EPA included a so-called variance provision. For health-based 
pollutants, states could apply a standard of performance less stringent 
than the EPA's EGs based on cost, physical impossibility, and other 
factors specific to a designated facility that make the application of 
a less stringent standard significantly more reasonable. 40 CFR 
60.24(f). For welfare-based pollutants, states could apply a less 
stringent standard by balancing the requirements of an EG ``against 
other factors of public concern.'' 40 CFR 60.24(d). As part of the 1977 
CAA amendments, Congress amended CAA section 111(d)(1) to require that 
the EPA's regulations under this section ``shall permit the State in 
applying a standard of performance to any particular source under a 
plan submitted under this paragraph to take into consideration, among 
other factors, the remaining useful life of the existing source to 
which such standard applies.'' At the time, the EPA considered the 
variance provision under subpart B to meet this requirement and did not 
revise the provision subsequent to the 1977 CAA amendments until 
promulgating new implementing regulations in 2019 under subpart Ba. As 
part of the 2019 revisions, the EPA removed the health and welfare-
based pollutants distinction and collapsed the associated requirements 
of the previous variance provision into a single, new RULOF provision. 
40 CFR 60.24a(e).\37\
---------------------------------------------------------------------------

    \37\ Petitioners did not challenge, and the court in ALA did not 
vacate, the new RULOF provision under 40 CFR 60.24a(e).
---------------------------------------------------------------------------

2. Rationale for the Proposed Revisions
    As previously described, the statute expressly requires the EPA to 
permit states to consider RULOF for a particular designated facility 
when applying a standard of performance to that facility. The 
consideration of remaining useful life in particular can be an 
important consideration, as the cost of control for a specific 
designated facility that is expected to cease operations in the near 
term could significantly vary from the average cost calculations done 
as part of the BSER determination for the source category as a whole. 
In such an instance, and in others as described throughout section 
III.E of this preamble, a less stringent standard may be justifiable in 
lieu of a standard of performance that reflects the presumptive level 
of stringency. However, as currently written, the RULOF provision in 
subpart Ba does not provide clear parameters for states on how and when 
to apply a standard less stringent than the presumptive level of 
stringency given in an EG to a particular source.
    As written, the references to reasonableness in this provision are 
potentially subject to widely differing interpretations and 
inconsistent

[[Page 79197]]

application among states developing plans, and by the EPA in reviewing 
them. Without a clear analytical framework for applying RULOF, the 
current provision may be used by states to set less stringent standards 
such that they could effectively undermine the overall presumptive 
level of stringency envisioned by the EPA's BSER determination and 
render it meaningless. Such a result is contrary to the overarching 
purpose of CAA section 111(d), which is generally to require meaningful 
emission reductions from designated facilities based on the BSER in 
order to mitigate pollution which endangers public health or welfare.
    Additionally, while states have discretion to consider RULOF under 
CAA section 111(d), it is the EPA's responsibility to determine whether 
a state plan is ``satisfactory,'' \38\ which includes evaluating 
whether RULOF was appropriately considered. The relevant dictionary 
meaning of ``satisfactory'' is ``fulfilling all demands or 
requirements.'' The American College Dictionary (``ACD'') 1078 (C.L. 
Barnhart, ed. 1970). In addition to the requirements of the applicable 
emission guideline, state plans must be consistent with the underlying 
statutory purpose of mitigating the air pollution emissions which 
endanger public health or welfare. Thus, the most reasonable 
interpretation of a ``satisfactory plan'' is a CAA section 111(d) plan 
that meets the applicable conditions or requirements, which means that 
the EPA must assess a state's application of RULOF to determine whether 
it meets the regulatory requirements and whether the state employed 
RULOF in a manner that supports the statutory purpose. That is, the EPA 
must determine both whether the plan meets the requirements of the 
particular emission guideline, as well as meets the requirements of the 
implementing regulations that the EPA is directed to promulgate 
pursuant to CAA section 111(d).\39\
---------------------------------------------------------------------------

    \38\ CAA section 111(d)(2)(A) authorizes the EPA to promulgate a 
Federal plan for any state that ``fails to submit a satisfactory 
plan'' establishing standards of performance under section 
111(d)(1). Accordingly, the EPA interprets ``satisfactory'' as the 
standard by which the EPA reviews state plan submissions.
    \39\ Although there is no case law specifically on the standard 
of review of a section 111(d)(1) state plan or the EPA's duty to 
approve satisfactory plans, the EPA's action on a 111(d)(1) state 
plan is structurally identical to the EPA's action on a SIP. Under 
section 110(k)(3), EPA must approve a SIP that meets all 
requirements of the Act. See Train v. NRDC, 421 U.S. 60 (1975) 
(discussing the 1970 version of the Act); Virginia v. EPA, 108 F.3d 
1397, 1408-10 (D.C. Cir. 1995) (discussing the 1970, 1977, and 1990 
versions).
---------------------------------------------------------------------------

    The EPA's determination of whether each plan is ``satisfactory'', 
including the application of RULOF, must be generally consistent from 
one plan to another. If the states do not have clear parameters for how 
to consider RULOF when applying a standard of performance to a 
designated facility, then they face the risk of submitting plans that 
the EPA may not be able to consistently approve as satisfactory. For 
example, under the current broadly structured provision, two states 
could consider RULOF for two identically situated designated facilities 
and apply completely different standards of performance on the basis of 
the same factors. In this example, it may be difficult for the EPA to 
substantiate finding both plans satisfactory in a consistent manner, 
and the states and sources risk uncertainty as to whether each of the 
differing standards of performance would be approvable. Accordingly, 
providing a clear analytical framework for the invocation of RULOF will 
provide regulatory certainty for states and the regulated community as 
they seek to craft satisfactory plans that EPA can ultimately approve.
    Notably, CAA section 111(d) does not require states to consider 
RULOF, but rather requires that the EPA's regulations ``permit'' states 
to do so. In other words, the EPA must provide states with the ability 
to account for RULOF, but states may instead choose to establish a 
standard of performance that is the same as the presumptive level of 
stringency set forth in the EGs. The optionality, rather than mandate, 
for states to account for RULOF further supports the notion that this 
provision is not intended to undermine the presumptive level of 
stringency in an EG for the source category broadly. The EPA is not 
aware of any CAA section 111(d) EGs under which an EPA-approved state 
plan has previously considered RULOF to apply a standard of performance 
that deviates from the presumptive level of stringency. Clarifying 
parameters may better enable states to effectively use this provision 
in developing their state plans without undermining the overall purpose 
of CAA section 111 to mitigate pollution which endangers public health 
or welfare.
    For these reasons, the EPA is proposing to revise the RULOF 
provision under subpart Ba, consistent with the statutory construct and 
goals of CAA section 111(d), in order to provide states and sources 
with clarity regarding the requirements that apply to the development 
and approvability of state plans that consider RULOF when applying a 
standard of performance to a particular designated facility. The 
following describes the guiding principles for the EPA's proposed 
revisions.
    CAA section 111(a)(1) requires that the EPA determine the BSER is 
``adequately demonstrated'' for the regulated source category. In 
determining whether a given system of emission reduction qualifies as 
BSER, CAA section 111(a)(1) requires that the EPA take into account 
``the cost of achieving such reduction and any non-air quality health 
and environmental impact and energy requirements.'' The EPA's proposed 
revisions to clarify the RULOF provision do so by tethering the states' 
RULOF demonstration to the statutory factors the EPA considered in the 
BSER determination. This is appropriate under the statute because the 
EPA will have demonstrated that the BSER identified in the EG is 
``adequately demonstrated'' as achievable for sources broadly within 
the source category. Therefore, RULOF is appropriately applied to 
permit states to address instances where the application of the BSER 
factors to a particular designated facility is fundamentally different 
than the determinations made to support the BSER and presumptive level 
of stringency in the EG. For example, the D.C. Circuit has stated that 
to be ``adequately demonstrated,'' the system must be ``reasonably 
reliable, reasonably efficient, and . . . reasonably expected to serve 
the interests of pollution control without becoming exorbitantly costly 
in an economic or environmental way.'' Essex Chem. Corp. v. 
Ruckelshaus, 486 F.2d 427, 433 (D.C. Cir. 1973). The court has further 
stated that the EPA may not adopt a standard in evaluating cost that 
would be ``exorbitant,'' \40\ ``greater than the industry could bear 
and survive,'' \41\ ``excessive,'' \42\ or ``unreasonable.'' \43\ These 
formulations use reasonableness in light of the statutory factors as 
the standard in evaluating cost, so that a control technology may be 
considered the ``best system of emission reduction . . . adequately 
demonstrated'' if its costs are reasonable (i.e., not exorbitant, 
excessive, or greater than the industry can bear), but cannot be 
considered the BSER if its costs are unreasonable. Similarly, in making 
the BSER

[[Page 79198]]

determination, the EPA must evaluate whether a system of emission 
reduction is ``adequately demonstrated'' for the source category based 
on the physical possibility and technical feasibility of control. Under 
this construct, it naturally follows that most designated facilities 
within the source category should be able to implement the BSER at a 
reasonable cost to achieve the presumptive level of stringency, and 
that RULOF will be justifiable only for a subset of sources for which 
implementing the BSER would impose unreasonable costs or not be 
feasible due to unusual circumstances that are not applicable to the 
broader source category that the EPA considered when determining the 
BSER.\44\
---------------------------------------------------------------------------

    \40\ Lignite Energy Council v. EPA, 198 F.3d 930, 933 (D.C. Cir. 
1999).
    \41\ Portland Cement Ass'n v. EPA, 513 F.2d 506, 508 (D.C. Cir. 
1975).
    \42\ Sierra Club v. Costle, 657 F.2d 298, 343 (D.C. Cir. 1981).
    \43\ Sierra Club v. Costle, 657 F.2d 298, 343 (D.C. Cir. 1981).
    \44\ This construct is also supported by CAA section 111(d) use 
of the term ``establishing'' in directing states to create and set 
standards of performance. As previously described, ``standard of 
performance'' is defined under CAA section 111(a)(1) as reflecting 
the degree of emission limitation achievable through application of 
the BSER, which sets the initial parameters for development of the 
standards of performance by states. The statute does not provide 
that states may account for RULOF in ``establishing'' standards of 
performance in the first instance, but permits states to do so in 
``applying'' such standards to a particular source.
---------------------------------------------------------------------------

    The proposed revisions to the regulatory RULOF provision, as 
described in section III.E. 3-8 of this preamble, are also consistent 
with how the EPA has approached RULOF in the implementing regulations 
previously. Subparts B and Ba both currently contain the same three 
circumstances for when states may account for RULOF, and reasonableness 
in light of the statutory criteria is an element of all three 
circumstances. Under those subparts as currently written, states may 
consider RULOF if they can demonstrate unreasonable cost of control, 
physical impossibility of control, or other factors that make 
application of a less stringent standard ``significantly more 
reasonable.'' 40 CFR 60.24(f) and 60.24a(e). The EPA's proposal retains 
the first circumstance in whole and revises the second one to add 
``technical infeasibility'' of installing a control as a situation 
where application of consideration of RULOF may be appropriate. The 
proposal further clarifies the third catch-all circumstance, which the 
first two circumstances also fall under, by specifying that states may 
consider RULOF to apply a less stringent standard if factors specific 
to a facility are fundamentally different from the factors considered 
in the determination of the BSER in an EG. The proposed clarification 
of this third criteria provides parameters for states and the EPA in 
developing and assessing state plans, as this criteria was previously 
vague and potentially open-ended as to the circumstances under which 
states could consider RULOF.
    The ``fundamentally different'' standard, which undergirds all 
three circumstances, is also consistent with other variance provisions 
that courts have upheld for environmental statutes. For example, in 
Weyerhaeuser Co. v. Costle, 590 F.2d 1011 (D.C. Cir. 1978), the court 
considered a regulatory provision promulgated under the Clean Water Act 
(CWA) that permitted owners to seek a variance from the EPA's national 
effluent limitation guidelines under CWA sections 301(b)(1)(A) and 
304(b)(1). The EPA's regulation permitted a variance where an 
individual operator demonstrates a ``fundamental difference'' between a 
CWA section 304(b)(1)(B) factor at its facility and the EPA's 
regulatory findings about the factor ``on a national basis.'' Id. at 
1039. The court upheld this standard as ensuring a meaningful 
opportunity for an operator to seek dispensation from a limitation that 
would demand more of the individual facility than of the industry 
generally, but also noted that such a provision is not a license for 
avoidance of the Act's strict pollution control requirements. Id. at 
1035.
    For the reasons described in this section, the EPA is proposing to 
clarify the existing RULOF provision under 40 CFR 60.24a(e) by: (1) 
revising the threshold requirements for consideration of RULOF; (2) 
adding requirements for calculating a less stringent standard 
accounting for RULOF; (3) adding requirements for consideration of 
communities most affected by and vulnerable to the health and 
environmental impacts from the designated facilities being addressed; 
and (4) adding requirements for the types of information and evidence 
the states must provide to support the invocation of RULOF in a state 
plan. The EPA solicits comment on the proposed revisions described in 
the following sections (Comment E2-1), including the use of the BSER 
factors as a framework governing the invocation and application of the 
RULOF provision (Comment E2-2). The EPA notes a specific EG may provide 
additional requirements or supersede the requirements of the 
implementing regulations. 40 CFR 60.20a(a)(1). This extends to any 
requirements of the RULOF provision, as the EPA cannot necessarily 
anticipate the appropriate and potentially unique implementation needs 
for every future EG. The EPA solicits comment on the circumstances 
under which it would be appropriate for an EG to provide additional 
requirements or supersede the requirements of these proposed revisions 
to the RULOF provision (Comment E2-3).
    The EPA also solicits comment about whether, instead of 
establishing firm requirements for the application of RULOF, the EPA 
should instead consider establishing a framework, consistent with the 
proposed requirements in the following discussion, pursuant to which 
state plans would be considered presumptively approvable (Comment E2-
4). In this scenario, states would have certainty regarding what type 
of demonstration the EPA would find satisfactory as they develop their 
plans, but states could also submit an alternative RULOF demonstration 
for the EPA's consideration. In the latter case, states would bear the 
burden of proving to the EPA that they have proposed a satisfactory 
alternative analysis and standard, considering all factors relevant to 
addressing emissions from the source or sources at issue. The EPA also 
solicits comment on what different approaches might be appropriate for 
a state in applying RULOF to a particular source and that the EPA 
should consider in determining whether to finalize the provisions 
discussed below, either as requirements or as presumptions (Comment E2-
5).
    Note that the EPA considers the proposed RULOF provisions to apply 
in circumstances distinct from the flexible compliance mechanisms, such 
as trading and averaging, discussed in section III.G.1 of this 
preamble. In other words, these provisions would apply where a state 
intends to depart from the presumptive standards in the EG and propose 
a less stringent standard for a designated facility (or class of 
facilities), and not where a state intends to comply by demonstrating 
that a facility or group of facilities subject to a state program 
would, in the aggregate, achieve equivalent or better reductions than 
if the state instead imposed the presumptive standards required under 
the EG at individual designated facilities.
3. Threshold Requirements for Considering Remaining Useful Life and 
Other Factors
    Under the existing RULOF provision in subpart Ba, 40 CFR 60.24a(e), 
a state may only account for RULOF in applying a standard of 
performance provided that it makes a demonstration based on one of 
three criteria. These criteria are: (1) unreasonable cost of control 
resulting from plant age,

[[Page 79199]]

location, or basic process design; (2) physical impossibility of 
installing necessary control equipment; or (3) other factors specific 
to the facility (or class of facilities) that make application of a 
less stringent standard or final compliance time significantly more 
reasonable. However, the existing version of this provision in subpart 
Ba provides no further guidance on what constitutes reasonableness or 
unreasonableness for these demonstrations. The EPA proposes to clarify 
this provision by revising it to require that in order to account for 
RULOF in applying a less stringent standard of performance to a 
designated facility, a state must demonstrate that the designated 
facility cannot reasonably apply the BSER to achieve the degree of 
emission limitation determined by the EPA because it entails (1) an 
unreasonable cost of control resulting from plant age, location, or 
basic process design; (2) physical impossibility or technical 
infeasibility of installing necessary control equipment; or (3) other 
circumstances specific to the facility (or class of facilities) that 
are fundamentally different from the information considered in the 
determination of the BSER in the emission guidelines.\45\ The first 
criterion remains the same as under the existing RULOF provision in 40 
CFR 60.24a(e). For the second criterion, the EPA is proposing to add a 
reference to technical infeasibility, as a similar yet distinct factor 
from that of physical impossibility of control. Finally, the EPA is 
proposing to revise the third criterion by referring to any 
circumstances at a specific designated facility that are 
``fundamentally different from the information [the EPA] considered in 
the determination of the best system of emission reduction'', rather 
than the current regulation, which applies to factors ``that make 
application of a less stringent standard or final compliance time 
significantly more reasonable.'' This revision to the third criterion 
will ensure that application of RULOF is akin to the types of 
circumstances anticipated by the first two criteria and consistent with 
the statutory construct of CAA section 111(d), as further described 
below, rather than based on subjective criteria that is untethered to 
the statute and that could result in widely diverging and potentially 
arbitrary application by states.
---------------------------------------------------------------------------

    \45\ States may also account for RULOF when applying standards 
of performance to a class of designated facilities. For purposes of 
administrative efficiency, a state may be able to calculate a 
uniform standard of performance that accounts for RULOF using a 
single set of demonstrations to meet the proposed requirements 
described in this section if the group of sources has similar 
characteristics.
---------------------------------------------------------------------------

    The EPA proposes to require that, in order to demonstrate that a 
designated facility cannot reasonably meet the presumptive level of 
stringency based on one of these three criteria, the state must show 
that implementing the BSER is not reasonable for the designated 
facility due to fundamental differences between the factors the EPA 
considered in determining the BSER, such as cost and technical 
feasibility of control, and circumstances at the designated facility.
    Per the requirements of CAA section 111(a)(1), the EPA determines 
the BSER by first identifying control methods that it considers to be 
adequately demonstrated, and then determining which are the best 
systems by evaluating (1) the cost of achieving such reduction, (2) 
health and environmental impacts, (3) energy requirements, (4) the 
amount of reductions, and (5) advancement of technology. So, for 
example, if the EPA applied a specific dollar-per-ton threshold in 
determining the BSER, the state would be required to show that the cost 
of implementing the BSER in order to achieve the presumptive level of 
stringency at a particular designated facility is unreasonably high 
relative to the EPA's cost threshold applied in the EG. Or, by way of 
further example, if the EPA were to determine that a specific back-end 
control technology at a 95 percent reduction in emissions of a specific 
pollutant is the BSER for a source category, a state could evaluate 
whether it would be physically possible to install that control 
technology at a designated facility given the size and physical 
constraints needed to install it. If the state could show that the 
cost-per-ton was significantly higher at a specific designated facility 
or that a specific designated facility does not have adequate space to 
reasonably accommodate the installation, that designated source may be 
evaluated for a less stringent standard because of the consideration of 
RULOF. Requiring states to hew to the same types of factors and 
analyses considered in the EPA's BSER determination in making the 
demonstration that the BSER is not reasonable to implement at a 
particular designated facility is consistent with the statutory 
construct that defines RULOF as a limited exception to the level of 
stringency otherwise required by the BSER.
    In examining the factors that the EPA considered in determining the 
BSER and how they apply to a specific facility, states may not invoke 
RULOF based on minor, non-fundamental differences. There could be 
instances where a designated facility may not be able to comply with 
the level of stringency required by the EG based on the precise metrics 
of the BSER determination but is able to do so within a reasonable 
margin. For example, if the EPA determined a BSER based on a cost-
effectiveness threshold of $500/ton, it would not be reasonable for a 
state to apply the RULOF provision to propose a less stringent standard 
for a designated facility that can meet the standard of performance at 
a slightly higher cost, such as $525/ton. There might also be instances 
where the EPA determines the BSER for a source category as a particular 
technology, but a particular designated facility does not currently 
have the capability to implement that technology, and it would be cost 
prohibitive to gain that capability. However, if that designated 
facility has the ability instead to reasonably install a different, 
non-BSER technology to achieve the presumptive level of stringency, the 
designated facility would not be eligible for a less stringent standard 
that accounts for RULOF. The EPA notes the examples described here are 
meant to be illustrative hypotheticals and are not determinative of 
whether state plans that include similar scenarios would be approvable 
under a specific EG.
    The EPA acknowledges that what is considered reasonable in light of 
the statutory factors is a fact-specific inquiry based on the source 
category and pollutant that is being regulated pursuant to a particular 
EG, and that the EPA cannot anticipate and address all circumstances 
that may arise in these general implementing regulations. Thus, the EPA 
may consider additional factors and establish additional requirements 
governing the consideration of RULOF, including what deviations from 
the presumptive standard may be considered reasonable, in a particular 
EG.
    The EPA solicits comment on the proposal to require states to 
demonstrate, as a threshold matter when determining whether a state may 
account for RULOF in order to set a less stringent standard, that the 
designated facility cannot reasonably apply the BSER to achieve the 
presumptive level of stringency determined by the EPA (Comment E3-1). 
The EPA further solicits comment whether other considerations should 
inform the circumstances under which the EPA should permit RULOF to be 
used to set a less stringent standard for a particular source (Comment 
E3-2).

[[Page 79200]]

4. Calculation of a Standard Which Accounts for Remaining Useful Life 
and Other Factors
    If a state has made the proposed demonstration that accounting for 
RULOF is appropriate for a particular designated facility, the state 
may then apply a less stringent standard. The current RULOF provision 
in subpart Ba is silent as to how a less stringent standard should be 
calculated, raising the potential for inconsistent application of this 
provision across states and the potential for the imposition of a 
standard less stringent than what would be reasonably achievable by a 
designated facility. In order to fill this gap and ensure the integrity 
of the CAA section 111(d) program, the EPA is proposing several 
requirements that would apply for the calculation of a standard of 
performance that accounts for RULOF. The proposed requirements 
described in this section are designed to provide a framework for the 
state's analysis in evaluating and identifying a less stringent 
standard, and in doing so would prevent the application of a standard 
that is less stringent than what is otherwise reasonably achievable by 
a particular designated facility, while remaining general in order to 
account for possible differences across source categories and 
designated facilities that may be addressed by specific EGs.
    The EPA is first proposing to require that the state determine and 
include, as part of the plan submission, a source-specific BSER for the 
designated facility. As described previously, the statute requires the 
EPA to determine the BSER by considering control methods that it 
considers to be adequately demonstrated, and then determining which are 
the best systems by evaluating (1) the cost of achieving such 
reduction, (2) health and environmental impacts, (3) energy 
requirements, (4) the amount of reductions, and (5) advancement of 
technology. To be consistent with this statutory construct, the EPA 
proposes that in determining a less stringent BSER for a designated 
facility, a state must also consider all these factors in applying 
RULOF for that source.
    Specifically, the state in its plan submission must identify all 
control technologies available for the source and evaluate the BSER 
factors for each technology, using the same metrics and evaluating them 
in the same manner as the EPA did in developing the EG using the five 
criteria noted above.\46\ For example, if the EPA evaluated capital 
costs as part of its cost analysis in setting the BSER, the state must 
do the same in evaluating a control technology for an individual 
designated facility, rather than selecting a different cost metric. The 
state must then calculate the emission reductions that applying the 
source-specific BSER would achieve and select the standard which 
reflects this degree of emission limitation. This standard must be in 
the form or forms (e.g., numerical rate-based emission standard) as 
required by the specific EG. The EPA notes there may be cases where a 
state determines that a designated facility cannot reasonably implement 
the BSER but can instead reasonably implement another control measure 
to achieve the same level of stringency required by an EG. In such 
cases, the standard of performance that reflects the source-specific 
BSER would be the same level of stringency as the degree of emission 
limitation achievable through application of the EPA's BSER.
---------------------------------------------------------------------------

    \46\ To the extent that a state seeks to apply RULOF to a class 
of facilities that the state can demonstrate are similarly situated 
in all meaningful ways, the EPA proposes to permit the state to 
conduct an aggregate analysis of these factors for the entire class.
---------------------------------------------------------------------------

    The EPA solicits comment on these proposed requirements for the 
calculation and form or forms of the less stringent standard that 
accounts for remaining useful life and other factors (Comment E4-1). 
The EPA believes that the five identified BSER factors generally 
address all relevant information that states would reasonably consider 
in evaluating the emission reductions reasonably achievable for a 
designated facility. Moreover, the EPA considers that these factors 
provide states with the discretion to weigh these factors in 
determining the BSER and establishing a reasonable standard of 
performance for the source. However, the EPA solicits comments on 
whether there are additional factors, not already accounted for in the 
BSER analysis, that the EPA should permit states to consider in 
determining the less stringent standard for an individual source 
(Comment E4-2). The EPA also solicits comments on whether we should 
consider these factors to be part of a presumptively approvable 
framework for applying a less stringent standard of performance, rather 
than requirements, and, if so, what different approaches states might 
use to evaluate and identify less stringent standards that the EPA 
should consider to be satisfactory in evaluating state plans that apply 
RULOF (Comment E4-3).
    The EPA notes that CAA section 111(d) requires that state plans 
include measures that provide for the implementation and enforcement of 
a standard of performance. This requirement therefore applies to any 
standard of performance established by a state that accounts for RULOF. 
Such measures include monitoring, reporting, and recordkeeping 
requirements, as required by 40 CFR 60.25a, as well as any additional 
measures specified under an applicable EG. In particular, any standard 
of performance that accounts for RULOF is also subject to the 
requirement under subpart Ba that the state plan submission include a 
demonstration that each standard is quantifiable, non-duplicative, 
permanent, verifiable, and enforceable. 40 CFR 60.27a(g)(3)(vi). The 
EPA is not proposing to modify these requirements, and therefore not 
reopening them in this action.
5. Contingency Requirements
    The EPA recognizes that a source's operations may change over time 
in ways that cannot always be anticipated or foreseen by the EPA, 
state, or designated facility. This is particularly true where a state 
seeks to rely on a designated facility's operational conditions, such 
as the source's remaining useful life or restricted capacity, as a 
basis for setting a less stringent standard. If the designated facility 
subsequently changes its operating conditions after the state applies a 
less stringent standard of performance, there is potential for the 
standard to not match what is reasonably achievable by a designated 
facility, resulting in forgone emission reductions and undermining the 
level of stringency set by an EG. For example, a state may seek to 
invoke RULOF for an electric generating unit (EGU) on the basis that it 
is running at lower utilization (and therefore less efficiently) than 
is anticipated by the BSER and intends to do so for the duration of the 
compliance period required by an EG. Under this scenario, the state may 
be able to demonstrate that it is not reasonably cost-effective for the 
designated facility to implement the BSER in order to achieve the 
presumptive level of stringency, and the state could set a less 
stringent standard of performance for this EGU. However, because 
reduced utilization is not a physical constraint on the designated 
facility's operations, it is possible that the source's utilization 
could increase in the future without any other legal constraint.
    The implementing regulations do not currently address this 
potential scenario. To address this issue, the EPA is proposing to add 
a contingency requirement to the RULOF provision

[[Page 79201]]

that would require a state to include in its state plan a condition 
making a source's operating condition, such as remaining useful life or 
restricted capacity, enforceable whenever the state seeks to rely on 
that operating condition as the basis for a less stringent standard. 
This requirement would not extend to instances where a state applies a 
less stringent standard on the basis of an unalterable condition that 
is not within the designated source's control, such as technical 
infeasibility, space limitations, water access, or geologic 
sequestration access. Rather, this requirement addresses operating 
conditions such as operation times, operational frequency, process 
temperature and/or pressure, fuel parameters, and other conditions that 
are subject to the discretion and control of the designated facility.
    As previously discussed, the state plan submission must also 
include measures for the implementation and enforcement of a standard 
that accounts for RULOF. For standards that are based on operating 
conditions that a facility has discretion over and can control, the 
operating condition and any other measure that provides for the 
implementation and enforcement of the less stringent standard must be 
included in the plan submission and as a component of the standard of 
performance. For example, if a state applies a less stringent standard 
for a designated facility on the basis of a lower capacity factor, the 
plan submission must include an enforceable requirement for the source 
to operate at or below that capacity factor, and include monitoring, 
reporting, and recordkeeping requirements that will allow the state, 
the EPA, and the public to ensure that the source is in fact operating 
at that lower capacity. A specific EG may detail supplemental or 
different requirements on implementing the proposed general requirement 
that a state plan submission include both the operating condition that 
is the basis for a less stringent standard, and measures to provide for 
the implementation and enforcement of such standard.
    The EPA notes there may be circumstances under which a designated 
facility's operating conditions change permanently so that there may be 
a potential violation of the contingency requirements approved as 
federally enforceable components of the state plan. For example, a 
designated facility that was previously running at lower capacity now 
plans to run at a higher capacity full time, which conflicts with the 
federally enforceable state plan requirement that the facility operate 
at the lower capacity. To address this concern, a state may submit a 
plan revision to reflect the change in operating conditions. Such a 
plan revision must include a new standard of performance that accounts 
for the change in operating conditions. The plan revision would need to 
include a standard of performance that reflects the level of stringency 
required by the EG and meet all applicable requirements, or if a less 
stringent standard is still warranted for other reasons, the plan 
revision would need to meet all of the applicable requirements for 
considering RULOF. The new standard of performance would only become 
effective upon the EPA's determination that the plan revision is 
satisfactory.
    The EPA requests comment on the proposed contingency requirements 
to address the concern that a designated facility's operations may 
change over time in ways that do not match the original rationale for a 
less stringent standard (Comment E5-1).
6. Requirements Specific to Remaining Useful Life
    Remaining useful life is the one ``factor'' that CAA section 111(d) 
explicitly requires that the EPA permit states to consider in applying 
a standard of performance. While the age of a fleet can be a 
consideration of a BSER determination, it is a factor that can have 
considerable variability and the annualized costs can change 
considerably based on the applied technology at a particular designated 
facility and the amortization period. When the EPA determines a BSER, 
it considers cost and, in many instances, the EPA specifically 
considers annualized costs associated with payment of the technology 
associated with the BSER. The shorter that payback period is (i.e., 
shorter remaining useful life), the less cost-effective that BSER may 
become. The current RULOF provision generally allows for a state to 
account for remaining useful life to set a less stringent standard. 
However, the provision does not provide guidance or parameters on when 
and how a state may do so. Consistent with the principles described 
previously in this section (section III.E), the EPA is proposing 
certain requirements for when a state seeks to apply a less stringent 
standard on grounds that a designated facility will retire in the near 
future.
    The EPA is proposing to require that in order to account for 
remaining useful life in setting a less stringent standard for a 
particular designated facility, the source's retirement date must be no 
later than a date to be established by the EPA in an EG, or if the EPA 
does not provide such a date in an EG, a date determined by the state 
using the methodology and considerations provided by EPA in the EG. 
More specifically, in order for a state to determine whether a retiring 
source qualifies for a less stringent standard, the EPA is proposing to 
require either that the Agency must identify in an EG an outermost 
remaining useful life date that would provide the latest retirement 
date that states can rely on for a designated facility or that the 
Agency must provide the methodology and considerations to be applied by 
states as part of their plans in determining whether a retiring source 
qualifies for a less stringent standard.
    The outermost retirement date or the methodology to establish such 
date for a designated facility will be established based on the 
technical record for the EG, and as with any requirement of an EG, 
subject to notice-and-comment rulemaking through the EG proposal. By 
identifying the outermost retirement date or methodology that states 
may use to account for remaining useful life, the EPA is ensuring 
consistency and appropriate implementation of an EG across designated 
facilities and states. If the EPA did not identify an outermost 
retirement date or specified methodology and conditions, then a state 
plan could attempt to account for the remaining useful life for a 
designated facility whose retirement date does not reasonably warrant a 
less stringent standard, undermining the control objectives of the EG 
and CAA section 111(d) itself. Based on these concerns, the EPA is 
proposing that states may account for remaining useful life if the 
retirement date is not further out than the outermost date identified 
or determined through the methodology and conditions provided by the 
EPA in the applicable EG.
    If a designated facility's retirement date is within the period 
identified by the EPA in an EG or by the state in its plan through the 
methodology provided, then the state may account for the remaining 
useful life of that source in applying a less stringent standard of 
performance. As previously discussed, the EPA is proposing to require 
that when an operational condition is used as the basis for applying a 
less stringent standard, the state plan must include that condition as 
a federally enforceable requirement. Accordingly, if a state applies a 
less stringent standard by accounting for remaining useful life, the 
EPA is proposing to require that the state plan must include the 
retirement date for the designated facility as an enforceable 
commitment and include measures that provide for the implementation and 
enforcement of

[[Page 79202]]

such commitment. For example, the state could adopt a regulation or 
enter into an agreed order requiring the designated facility to shut 
down by a certain date, and that regulation or agreed order should then 
be incorporated into the state plan. The state could also choose to 
incorporate the shutdown date into a permit and incorporate that permit 
into the state plan.
    The EPA is further proposing to add an explicit requirement in the 
implementing regulations that the state impose a standard that applies 
to a designated facility until its retirement. This standard must 
reflect a reasonably achievable source-specific BSER and be calculated 
and supported by the demonstration described in section III.E.3 of this 
preamble. The EPA recognizes that, in some instances, a designated 
facility may intend to retire imminently after the promulgation of an 
EG, and in such cases it may not be reasonable to require any controls 
based on the source's exceptionally short remaining useful life. In the 
case of an imminently retiring source, the EPA is proposing that the 
state apply a standard no less stringent than one that reflects the 
designated facility's business as usual. This requirement equitably 
accommodates practical considerations without impermissibly 
exacerbating the impacts of the pollutant regulated under CAA section 
111(d). The EPA generally expects that an ``imminent'' retirement is 
one that is about to happen in the near term relative to the compliance 
date in the EG. The EPA may also define what is considered to be the 
timeframe for an imminent retirement for purposes of a specific EG, 
with consideration to the time and costs associated with meeting 
compliance obligations for a given BSER and associated standard of 
performance. For example, if a BSER for a given EG is established to be 
a back-end control device with a 90 percent reduction of the given 
pollutant from the emission stream, there may be considerable time and 
money to be invested in meeting that compliance obligation. The EPA may 
define the timeframe that qualifies as an imminent retirement for this 
situation to be in line with the time needed to install the control 
device plus some additional marginal time that the EPA deems to fit 
within the timeline of ``imminence'' given the specific nature and 
analytics associated with the source category and BSER. This definition 
of the timeframe for an imminent retirement would differ from an 
example situation where the BSER is established to be operation and 
maintenance techniques which may require minimal lead time and capital 
costs. In this counter example, the EPA may define in the respective EG 
a short timeframe for imminent retirements or may instead establish 
that there is no such timeframe that qualifies for a business-as-usual 
standard and that retiring sources must comply with an interim standard 
that requires some appropriate level of control. If the EPA defines an 
imminent timeframe in a specific EG a state may then apply a business 
as usual standard to a retiring designated facility that is retiring 
within such timeframe. The EPA intends to provide guidance as 
appropriate in the context of a specific EG regarding the calculation 
of a business as usual standard.
    The EPA solicits comment on the proposed requirements specific to 
the consideration of remaining useful life as described in this section 
(Comment E6-1).
7. The EPA's Standard of Review of State Plans Invoking RULOF
    Under CAA section 111(d)(2), the EPA has the obligation to 
determine whether a state plan submission is ``satisfactory.'' This 
obligation extends to all aspects of a state plan, including the 
application of a less stringent standard of performance that accounts 
for RULOF. The revisions to the RULOF provision under the implementing 
regulations are intended to provide parameters not only for the 
development of CAA section 111(d) state plans, but for the EPA to 
evaluate for the approvability of such plans. The EPA is proposing the 
following requirements to further bolster the RULOF provision and to 
facilitate the EPA's review of a state plan to determine whether the 
plan implementing the RULOF provision is ``satisfactory.'' As an 
initial matter, the EPA proposes to explicitly require that the state 
must carry the burden of making the demonstrations required under the 
RULOF provision. States carry the primary responsibility to develop 
plans that meet the requirements of CAA section 111(d) and therefore 
have the obligation to justify any accounting for RULOF that they 
invoke in support of standards less stringent than those provided by 
the EG. While the EPA has discretion to supplement a state's 
demonstration, the EPA may also find that a state plan's failure to 
include a sufficient RULOF demonstration is a basis for concluding the 
plan is not ``satisfactory'' and therefore disapprove the plan.
    The EPA is further proposing that for the required demonstrations, 
the state must use information that is applicable to and appropriate 
for the specific designated facility, and the state must show how 
information is applicable and appropriate. As RULOF is a source-
specific determination, it is appropriate to require that the 
information used to justify a less stringent standard for a particular 
designated facility be applicable to and appropriate for that source. 
The EPA anticipates that in most circumstances, site-specific 
information will be the most applicable and appropriate to use for 
these demonstrations and proposes to require site-specific information 
where available. In some instances, site-specific information may not 
be available, and a state may instead be able to use general 
information about a source category to evaluate a particular designated 
facility. In such cases, the state plan submission must provide both 
the general information and a clear assessment of how the information 
is applicable to and appropriate for the designated facility. The use 
of general information must also be appropriate and consistent with the 
overall assessment and conclusions regarding consideration of RULOF for 
the specific designated facility.
    Finally, the EPA proposes to require that the information used for 
a state's demonstrations under the new RULOF provisions must come from 
reliable and adequately documented sources, such as EPA sources and 
publications, permits, environmental consultants, control technology 
vendors, and inspection reports. Requiring the use of such sources will 
help ensure that an accounting of RULOF is premised on legitimate, 
verifiable, and transparent information. The EPA notes that an EG may 
also specify aspects of the demonstrations that require certification 
from third-party industry experts, such as certified engineering firms. 
The EPA solicits comment on the proposed list of information sources 
(Comment E7-1) and whether other sources should be considered as 
reliable and adequately documented sources of information for purposes 
of the RULOF demonstration, including but not limited to reliable and 
adequately documented sources of cost information (Comment E7-2).\47\
---------------------------------------------------------------------------

    \47\ The EPA acknowledges there may be reliable and adequately 
documented sources of information other than those described in this 
section. The EPA encourages states to consult with their Regional 
Offices if there are questions about whether a particular source of 
information would meet the applicable requirements.
---------------------------------------------------------------------------

    These requirements will aid both the EPA in evaluating whether 
RULOF has been appropriately accounted for, and the public in 
commenting on the EPA's proposed action on a state plan that

[[Page 79203]]

includes a less stringent standard on the basis of RULOF. The EPA 
solicits comment on the proposed requirements described in this section 
regarding the EPA's standard of review for state plans that invoke 
consideration of RULOF (Comment E7-3).
8. Consideration of Impacted Communities
    CAA section 111(d) does not specify what are the ``other factors'' 
that the EPA's regulations should permit for a state to consider in 
applying a standard of performance. The EPA interprets this as 
providing discretion for the EPA to identify the appropriate factors 
and conditions under which the circumstance may be reasonably invoked 
in establishing a standard less stringent than the EG. Additionally, 
CAA section 111(d)(2)'s requirement that the EPA determine whether a 
state plan is ``satisfactory'' applies to such plan's consideration of 
RULOF in applying a standard of performance to a particular facility. 
Accordingly, the EPA must determine whether a plan's consideration of 
RULOF is consistent with section 111(d)'s overall health and welfare 
objectives.
    While the consideration of RULOF can be warranted to apply a less 
stringent standard of performance to a particular facility, such 
standards have the potential to result in disparate health and 
environmental impacts to communities most affected by and vulnerable to 
those impacts from the designated facilities being addressed by the 
state plan. These communities could be put in the position of bearing 
the brunt of the greater health or environmental impacts resulting from 
that source implementing less stringent emission controls than would 
otherwise have been required pursuant to the EG. The EPA considers that 
a lack of attention to such potential outcomes would be antithetical to 
the public health and welfare goals of CAA section 111(d) and the CAA 
generally.
    In order to address the potential exacerbation of health and 
environmental impacts to these communities as a result of applying a 
less stringent standard, the EPA is proposing to require states to 
consider such impacts when applying the RULOF provision to establish 
those standards. The EPA is proposing to require that, to the extent a 
designated facility would qualify for a less stringent standard through 
consideration of RULOF, the state, in calculating such standard, must 
consider the potential health and environmental impacts and potential 
benefits of control to communities most affected by and vulnerable to 
the impacts from the designated facility considered in a state plan for 
RULOF provisions. These communities will be identified by the state as 
pertinent stakeholders under the proposed meaningful engagement 
requirements described in section III.C of this preamble.
    The EPA proposes to require that state plan submissions seeking to 
invoke RULOF for a source must identify where and how a less stringent 
standard impacts these communities. In evaluating a RULOF option for a 
facility, states should describe the health and environmental impacts 
anticipated from the application of RULOF for such communities, along 
with any feedback the state received during meaningful engagement 
regarding its draft state plan submission, including on any standards 
of performance that consider RULOF. Additionally, to the extent there 
is a range of options for reasonably controlling a source based on 
RULOF, the EPA is proposing that in determining the appropriate 
standard of performance, states should consider the health and 
environmental impacts to the communities most affected by and 
vulnerable to the impacts from the designated facility considered in a 
state plan for RULOF provisions and provide in the state plan 
submission a summary of the results that depicts potential impacts for 
those communities for that range of reasonable control options.
    This requirement to consider the health and environmental impacts 
in any standards of performance taking into account RULOF is consistent 
with the definition of ``standard of performance'' in CAA section 
111(a)(1). This definition requires the EPA to take into account health 
and environmental impacts in determining the BSER. As described in this 
section, if a designated facility qualifies for a less stringent 
standard based on RULOF, the EPA is proposing the state plan must 
identify a source-specific BSER based on the same factors and metrics 
the EPA considered in determining the BSER in the EG. Therefore, state 
plans must consider health and environmental impacts in determining a 
source-specific BSER informing a RULOF standard, just as the EPA is 
statutorily required to take into account these factors in making its 
BSER determination.
    As an example, the state plan submission could include a 
comparative analysis assessing potential controls on a designated 
facility and the corresponding potential impacts on affected vulnerable 
communities in controlling the source. If the comparative analysis 
shows that a designated facility may be controlled at a certain cost 
threshold higher than required under the EPA's proposed revisions to 
the RULOF provision, and such control benefits a vulnerable community 
that would otherwise be adversely impacted by a less stringent 
standard, the state in accounting for RULOF could use that cost 
threshold to apply a standard of performance. Given that the statute 
provides states with the discretion, rather than mandate, to consider 
RULOF in applying a standard of performance under CAA section 111(d), 
it is reasonable for states to consider the potential health and 
environmental impacts to communities most affected by and vulnerable to 
the impacts from a particular designated facility in calculating the 
level of stringency for such standard.\48\
---------------------------------------------------------------------------

    \48\ As previously described, CAA section 111(d) gives states 
the discretion to consider RULOF for a particular source and are not 
required to do so. States thus have the authority to choose to 
impose a more stringent standard, including the presumptive 
standard, than would be permissible under RULOF for other reasons, 
e.g. based on consideration of communities other than identified 
impacted communities.
---------------------------------------------------------------------------

    The EPA recognizes that the consideration of communities in the 
standard setting process, such as what constitutes a benefit to a 
vulnerable community and what is a reasonable level of control, is 
highly dependent on the designated pollutant and source category 
subject to an EG. For example, a comparative analysis for a localized 
pollutant may be quantified and evaluated differently from the analysis 
for a global pollutant. The EPA is therefore proposing general 
requirements for the consideration of impacts to vulnerable 
communities, and, where feasible, an EG will provide more specific 
guidance or requirements on how to meet these provisions under the 
implementing regulations.
    Additionally, under CAA section 111(d)(2)(B), the EPA has the 
authority to prescribe a Federal plan promulgating standards of 
performance for designated facilities located in a state that fails to 
submit a satisfactory plan. Consistent with the statute's mandate for 
the EPA's regulations under CAA section 111(d) to permit states to 
account for RULOF, this provision further directs that the EPA 
``shall'' take into account RULOF in promulgating standards of 
performance for a Federal plan. Therefore, because the statute uses the 
same ``other factors'' phrasing in both CAA sections 111(d)(1) 
governing state plans and 111(d)(2) governing Federal plans, the EPA 
proposes to require that health and environmental impacts to vulnerable 
communities be considered in both the

[[Page 79204]]

state and Federal plan contexts when accounting for RULOF.
    The EPA solicits comment on the proposed requirements described in 
this section for consideration of vulnerable communities in the context 
of RULOF (Comment E8-1).
9. Authority To Apply More Stringent Standards as Part of the State 
Plan
    The current RULOF provision in subpart Ba under 40 CFR 60.24a(e) 
governs instances where states seek to apply a less stringent standard 
of performance to a particular designated facility. In promulgating 
this provision, the EPA received comments contending that if states may 
consider factors that justify less stringent standards, they must also 
be permitted to consider factors that would justify greater stringency 
than required by an EG, such as more expeditious compliance obligations 
or the retirement of a source. EPA's Responses to Public Comments on 
the EPA's Proposed Revisions to Emission Guideline Implementing 
Regulations at 56 (Docket ID No. EPA-HQ-OAR-2017-0355-26740) (July 8, 
2019). In response to these comments, the EPA explained that it 
interpreted the statutory RULOF provision as intended to authorize only 
standards of performance that are less stringent than the presumptive 
level of stringency required by a particular EG. Id. at 57. The EPA has 
reevaluated its prior interpretation and is now proposing to amend 
subpart Ba to reflect its revised interpretation that the statute 
authorizes the EPA to permit states to consider other factors that 
justify application of a more stringent standard to a particular source 
than required by an EG. See FCC v. Fox Television Stations, Inc., 556 
U.S. 502 (2009). The EPA's rationale for its revised interpretation and 
proposal is as follows.
    First, allowing states to apply a more stringent standard as part 
of their CAA section 111(d) plans is consistent with CAA section 116, 
which generally authorizes states to include more stringent standards 
of performance or requirements regarding control or abatement of air 
pollution in their plans. The provisions at 40 CFR 60.24a(f) provide 
that nothing in the implementing regulations shall be construed to 
preclude states from adopting or enforcing a standard of performance or 
compliance schedule that is more stringent than required by an EG. This 
language is consistent with the anti-preemption requirements of CAA 
section 116. CAA section 116 provides that nothing in the statute shall 
preclude or deny the right of states to adopt or enforce ``any standard 
or limitation respecting emissions of air pollutants.'' While CAA 
section 116 clearly does not preclude a state from adopting or 
enforcing a standard of performance more stringent than required under 
CAA section 111(d), 40 CFR 60.24a(f) does not explicitly speak to 
whether the EPA can approve a state plan that includes such standard of 
performance. However, the EPA finds that CAA section 116, as 
interpreted through the Supreme Court decision in Union Electric Co. v. 
EPA, gives the EPA the authority to approve such state plan under CAA 
section 111(d). 427 U.S. 246, 263-64 (1976). The EPA proposes to modify 
this provision, clarifying that to the extent a state chooses to submit 
a plan that includes standards of performance or compliance schedules 
that are more stringent than the requirements of a final EG, states 
have the authority to do so under this provision and CAA section 116. 
Further, the EPA proposes to clarify that it has the obligation, and 
therefore the authority, to review and approve such plans and render 
the more stringent requirements federally enforceable if all applicable 
requirements are met.
    The EPA acknowledges that it previously took the position in the 
ACE Rule that Union Electric does not control the question of whether 
CAA section 111(d) state plans may be more stringent than Federal 
requirements. The EPA took this position in the ACE Rule on the basis 
that Union Electric on its face applies only to CAA section 110, and 
that it is ``potentially salient'' that CAA section 111(d) is 
predicated on specific technologies whereas CAA section 110 gives 
states broad latitude in the measures used for attaining the NAAQS. 84 
FR 32559-61. The EPA no longer takes this position. Upon further 
evaluation, the EPA finds that, because of the structural similarities 
between CAA sections 110 and 111(d), CAA section 116 as interpreted by 
Union Electric requires the EPA to approve CAA section 111(d) state 
plans that are more stringent than required by the EG. See FCC v. Fox 
Television Stations, Inc., 556 U.S. 502 (2009).
    The Court in Union Electric rejected a construction of CAA sections 
110 and 116 that measures more stringent than those required to attain 
the NAAQS cannot be approved into a federally enforceable SIP but can 
be adopted and enforced only as a matter of state law. The Court found 
that such an interpretation of CAA section 116 ``would not only require 
the Administrator to expend considerable time and energy determining 
whether a state plan was precisely tailored to meet the Federal 
standards but would simultaneously require States desiring stricter 
standards to enact and enforce two sets of emission standards, one 
federally approved plan and one stricter state plan.'' 427 U.S. at 263-
64. The Court concluded there was no basis ``for visiting such wasteful 
burdens upon the States and the Administrator.'' Id. Both CAA sections 
111(d) and 110 are structurally similar in that both require EPA to 
establish targets to meet the objectives of each respective section 
(i.e. the level of stringency set by an EG under CAA section 111(d), 
and attainment and maintenance of the NAAQS under CAA section 110) and 
states must adopt and submit to the EPA plans which include 
requirements to meet these targets. Specifically, the EPA establishes a 
presumptive level of stringency in an EG, and state plans under CAA 
section 111(d) must include standards of performance that generally 
reflect this level of stringency. Because CAA section 116 applies to 
``any standard or limitation'', this provision clearly applies to 
standards of performance adopted under CAA section 111(d). Therefore, 
the Court's rationale in Union Electric also applies to CAA section 
111(d). Requiring states to enact and enforce two sets of standards of 
performance, one that is a federally approved CAA section 111(d) plan 
and one that is a stricter set of state requirements, runs directly 
afoul of Union Electric's holding that there is no basis for 
interpreting CAA section 116 in such manner.
    Moreover, there is nothing in CAA section 111(d) that precludes 
states from adopting, and EPA from approving, more stringent standards 
of performance. As described previously, while standards of performance 
must generally reflect the presumptive level of stringency identified 
in an EG, CAA section 111(d) also requires the EPA to permit states to 
``take into consideration, among other factors, the remaining useful 
life'' in applying a standard of performance to a particular designated 
facility. Aside from the explicit reference to remaining useful life, 
the statute is silent as to what the ``other factors'' are that states 
may consider in applying a standard of performance and whether such 
factors can be used only to weaken the stringency of a standard of 
performance for a particular designated facility. Therefore, the EPA 
may reasonably interpret this ambiguity both as to what the ``other 
factors'' are that states may use to apply a standard of performance to 
a particular source, and how such consideration may affect the 
stringency of such standard. Accordingly, the EPA

[[Page 79205]]

reasonably interprets this phrase as authorizing states to consider 
other factors in exercising their discretion to apply a more stringent 
standard to particular a source. This is a reasonable interpretation of 
the statute because if Congress intended the RULOF provision to be used 
only to allow states to apply less stringent standards, it would have 
clearly specified that its intent or enumerated ``other factors'' that 
are appropriate for relaxing the stringency of a standard. The 
statute's explicit reference to remaining useful life shows that if 
there were factors that Congress specifically wanted the EPA to allow 
or disallow states to consider, it knew how to expressly make its 
intent clear in the RULOF provision.
    In addition to finding that the statute does not preclude the EPA's 
reasonable interpretation of the statutory RULOF provision as described 
above, the EPA has reevaluated the bases for its prior interpretation 
that states may only consider RULOF to apply a less stringent standard 
and determined those bases were flawed. In taking its prior 
interpretation, the EPA noted that the new regulatory RULOF provision 
under subpart Ba at 40 CFR 60.24a(e) was substantively similar to the 
variance provision under subpart B, which authorizes the use of other 
factors that ``make application of a less stringent standard or final 
compliance time significantly more reasonable.'' 40 CFR 60.24(f)(3). 
The EPA reasoned that because the variance provision under subpart B is 
similar to and predated Congress's addition of the statutory RULOF 
provision to CAA section 111(d) as part of the 1977 CAA Amendments, 
``Congress effectively ratified the EPA's implementing regulations' 
clear construct that remaining useful life and other factors are only 
relevant in the context of setting less stringent standards.'' EPA's 
Responses to Public Comments on the EPA's Proposed Revisions to 
Emission Guideline Implementing Regulations at 57 (Docket ID# No. EPA-
HQ-OAR-2017-0355-26740) (July 8, 2019). The EPA has closely reexamined 
the variance provision under subpart B and the RULOF provision under 
CAA section 111(d) and does not find that these provisions support the 
proposition that Congress clearly ratified the aspect of the variance 
provision in subpart B allowing states to apply only less stringent 
standards under certain circumstances. There are notable differences 
between the subpart B variance provision and the CAA section 111(d) 
RULOF provision that indicate Congress did not intend to incorporate 
and ratify all aspects of the EPA's regulatory approach when amending 
CAA section 111(d) in 1977. Particularly, for pollutants found to cause 
or contribute to endangerment of public health, subpart B allows states 
to apply a less stringent standard under certain circumstances unless 
the EPA provides otherwise in a specific EG for a particular designated 
facility or class of facilities. 40 CFR 60.24(c), (f). Subpart B places 
no similar exception for states in authorizing them to seek a variance 
for a standard addressing a pollutant for which the EPA has made a 
welfare-based, but not public health-based, endangerment finding under 
111(b)(1)(A). 40 CFR 60.24(d). By contrast, the statutory RULOF 
provision does not make a similar distinction between public health and 
welfare-based pollutants, which the EPA itself acknowledged in 
promulgating the regulatory RULOF provision in subpart Ba. 84 FR 32570, 
July 8, 2019. Therefore, the EPA cannot clearly ascertain whether the 
statutory RULOF provision ratified the variance provision under subpart 
B, given that certain key elements of the latter are not present in the 
former. There is nothing in CAA section 111(d) or the legislative 
history that suggests Congress enacted the statutory RULOF provision by 
ratifying certain elements of the regulatory variance provision in 
subpart B but not others.
    Additionally, in taking its prior position that states may only 
consider RULOF to apply a less stringent standard, the EPA asserted 
that the legislative history of the 1977 CAA Amendments supported its 
interpretation. The EPA highlighted the following statement in the 
House conference report adopting the amendment to add the statutory 
RULOF provision: ``The section also makes clear that standards adopted 
for existing sources under section 111(d) of the Act are to be based on 
available means of emission control (not necessarily technological) and 
must, unless the State decides to be more stringent, take into account 
the remaining useful life of the existing sources.'' H.R. Conf. Rep. 
No. 94-1742, (Sep. 30, 1976), 1977 CAA Legis. Hist. at 88. Based on 
this statement, the EPA found that the caveat that states have the 
choice to not invoke the RULOF provision and instead ``be more 
stringent'' suggests that considering RULOF is only intended to allow a 
state to make a standard less stringent. The EPA now finds that its 
prior reliance on this legislative history was flawed. The cited 
statement only speaks to remaining useful life, which is a factor that 
inherently suggests a less stringent standard, but it is completely 
silent as to the ``other factors'' the statute references. Thus, there 
is no indication that Congress intended to limit the ``other factors'' 
that states may apply in developing their plans only to permit less 
stringent, and not more stringent standards. Rather, the cited 
statement explicitly acknowledges that states may choose to ``be more 
stringent'', which supports the EPA's interpretation of the statute to 
permit states to consider other factors to set standards more stringent 
than the degree of emission limitation achievable through application 
of the BSER.
    Interpreting the statutory RULOF provision as authorizing states to 
apply a more stringent standard of performance to a particular source 
is also consistent with the purpose and structure of CAA section 
111(d). CAA section 111(d) clearly contemplates cooperative federalism, 
where states bear the obligation to establish standards of performance. 
Nothing under CAA section 111(d) suggests that the EPA has the 
authority to preclude states from determining that it is appropriate to 
regulate certain sources within their jurisdiction more strictly than 
otherwise required by Federal requirements. To do so would be arbitrary 
and capricious in light of the overarching purpose of CAA section 
111(d), which is to require emission reductions from existing sources 
for certain pollutants that endanger public health or welfare. It is 
inconsistent with the purpose of CAA section 111(d) and the role it 
confers upon states for the EPA to constrain them from further reducing 
emissions that harm their citizens, and the EPA does not see a 
reasonable basis for doing so.
    Other factors states may wish to account for in applying a more 
stringent standard than required under an EG include, but are not 
limited to, early retirements, and availability of control technologies 
that allow a source to achieve greater emission reductions. However, 
the EPA cannot in the implementing regulations anticipate each and 
every factor under which a state may seek to apply a more stringent 
standard. Therefore, the EPA is proposing general requirements under 
which states may use the RULOF provision to apply a more stringent 
standard and may identify any further parameters in a specific EG. The 
EPA is also proposing to require that states seeking to apply a more 
stringent standard of performance based on other factors must 
adequately demonstrate that the different standard is in fact more 
stringent than the presumptive

[[Page 79206]]

level of stringency. Such standard of performance must meet all 
applicable statutory and regulatory requirements, including that it is 
adequately demonstrated,\49\ and the state plan must include measures 
that provide for the implementation and enforcement of the standard as 
with any standard of performance under CAA section 111(d).
---------------------------------------------------------------------------

    \49\ The EPA is not proposing to require the state to conduct a 
source-specific BSER analysis for purposes of applying a more 
stringent standard, as the EPA proposes to require for application 
of a less stringent standard. So long as the standard will achieve 
equivalent or better emission reductions than required by the EG, 
the EPA believes it is appropriate to defer to the state's 
discretion to, for example, choose to impose more costly controls on 
an individual source.
---------------------------------------------------------------------------

    For the reasons described in this section, the EPA proposes to 
revise the RULOF provision under subpart Ba to permit states to 
consider factors which justify applying a standard of performance that 
is more stringent than required under an EG. The EPA solicits comment 
on its proposed interpretation of the statutory RULOF provision and 
revision to the regulatory provision (Comment E9-1).
    Moreover, the EPA proposes to clarify that under subpart Ba, per 
the authority of CAA sections 111(d) and 116, states may include more 
stringent standards of performance in their plans and that the EPA must 
approve and render such standards as federally enforceable, so long as 
the minimum requirements of the EG and subpart Ba are met.\50\ The EPA 
solicits comment on its proposal as described in this section (Comment 
E9-2).
---------------------------------------------------------------------------

    \50\ The EPA notes that its authority is constrained to 
approving measures which comport with applicable statutory 
requirements. For example, CAA section 111(d) only contemplates that 
state plans would include requirements for designated facilities 
regulated by a particular EG; therefore, the EPA concludes that 
section 116 does not provide it with the authority to approve and 
render federally enforceable measures on entities other than those 
on designated facilities.
---------------------------------------------------------------------------

F. Provision for Electronic Submission of State Plans

    The provision at 40 CFR 60.23a(a)(1) currently requires state plan 
submissions to be made in accordance with the provision in 40 CFR 60.4. 
Pursuant to 40 CFR 60.4(a), all requests, reports, applications, 
submittals, and other communications to the Administrator pursuant to 
40 CFR part 60 shall be submitted in duplicate to the appropriate 
regional office of the EPA. The provision in 40 CFR 60.4(a) then 
proceeds to include a list of the corresponding addresses for each 
regional office. In this action we are proposing to revise 40 CFR 
60.23a(a)(1) to require electronic submission of state plans instead of 
paper copies as according to 40 CFR 60.4. In particular, we are 
proposing to add a sentence to 40 CFR 60.23a(a)(1) that reads as 
follows: ``The submission of such plan shall be made in electronic 
format according with Sec.  60.23a(a)(3) or as specified in an 
applicable emission guideline.'' In 40 CFR 60.23a(a)(3), the EPA is 
proposing the general requirements associated with the electronic 
submittal of plans.
    As previously described, CAA section 111(d) requires the EPA to 
promulgate a ``procedure'' similar to that of CAA section 110 under 
which states submit plans. The statute does not prescribe a specific 
platform for plan submissions, and the EPA reasonably interprets the 
procedure it must promulgate under the statute as allowing it to 
require electronic submission. Requiring electronic submission is 
reasonable for the following reasons. Providing for electronic 
submittal of CAA section 111(d) state plans in subpart Ba in place of 
paper submittals aligns with current trends in electronic data 
management and as implemented in the individual EGs, will result in 
less burden on the states. It is the EPA's experience that the 
electronic submittal of information increases the ease and efficiency 
of data submittal and data accessibility. The EPA's experience with the 
electronic submittal process for SIPs under CAA section 110 has been 
successful as all the states are now using the State Planning 
Electronic Collaboration System (SPeCS). SPeCS is a user-friendly, web-
based system that enables state air agencies to officially submit SIPs 
and associated information electronically for review and approval to 
meet their CAA obligations related to attaining and maintaining the 
NAAQS. SPeCS for SIPs is the EPA's preferred method for receiving such 
SIPs submissions. The EPA has worked extensively with state air agency 
representatives and partnered with E-Enterprise for the Environment and 
the Environmental Council of the States to develop this integrated 
electronic submission, review, and tracking system for SIPs. SPeCS can 
be accessed by the states through the EPA's Central Data Exchange (CDX) 
(https://cdx.epa.gov/). The CDX is the Agency's electronic reporting 
site and performs functions for receiving acceptable data in various 
formats. The CDX registration site supports the requirements and 
procedures set forth under the EPA's Cross-Media Electronic Reporting 
Regulation, 40 CFR part 3.
    The EPA is proposing to include in 40 CFR 60.23a(a)(3) the general 
requirements associated with the electronic submittal of a state plan 
in subpart Ba. As proposed, 40 CFR 60.23a(a)(3) will require state plan 
submission to the EPA be via the use of SPeCS or through an analogous 
electronic reporting tool provided by the EPA for the submission of any 
plan required by this subpart. The EPA is also proposing to include in 
the new provision at 40 CFR 60.23a(a)(3) language to specify that 
states are not to transmit confidential business information (CBI) 
through SPeCS. Even though state plans submitted to the EPA for review 
and approval pursuant to CAA section 111(d) through SPeCS are not to 
contain CBI, this language will also address the submittal of CBI in 
the event there is a need for such information to be submitted to the 
EPA. Any other specific requirements associated with the electronic 
submittal of a particular state plan will be provided within the 
corresponding EG. The requirements for electronic submission of CAA 
section 111(d) state plans in EGs will ensure that these Federal 
records are created, retained, and maintained in electronic format. 
Electronic submittal will also improve the Agency's efficiency and 
effectiveness in the receipt and review of state plans. The electronic 
submittal of state plans may also provide continuity in the event of a 
disaster like the one our nation experienced with COVID-19. The EPA 
requests comment on whether the EPA should provide for electronic 
submittals of plans as an option instead of as a requirement (Comment 
F-1). The EPA requests comment on whether a requirement for electronic 
submissions of 111(d) state plans should be via SPeCS or whether 
another electronic mechanism should be considered as appropriate for 
CAA section 111(d) state plan submittals (Comment F-2).

G. Other Proposed Modifications and Clarifications

1. Standard of Performance and Compliance Flexibility
i. Definition of Standard of Performance
    The EPA proposes to amend 40 CFR 60.21a(f) and 60.24a(b) to clarify 
that the definition of ``Standard of performance'' allows for state 
plans to include standards in the form of an allowable mass limit of 
emissions. The current regulatory definition states that under CAA 
section 111 the establishment of standards of performance is to reflect 
the degree of emission limitation achievable through the application of 
the BSER, as determined by the EPA. Per the definition in 40 CFR 
60.21a(f), such a standard for emissions of air pollutants includes, 
``but [is] not limited

[[Page 79207]]

to a legally enforceable regulation setting forth an allowable rate or 
limit of emissions into the atmosphere, or prescribing a design, 
equipment, work practice, or operational standard, or combination 
thereof''. The term ``an allowable rate or limit of emissions'' was 
intended to encompass standards of performance based on quantity, rate, 
or concentration of emissions of air pollutants, consistent with the 
definition of ``emission limitation'' and ``emission standard'' in CAA 
section 302(k).\51\ To address any potential ambiguity about this term, 
the EPA is proposing to amend this provision to clarify that the term 
``an allowable rate or limit of emissions'' means ``an allowable rate, 
quantity, or concentration of emissions'' of air pollutants. The EPA is 
also proposing to amend the definition of standard of performance under 
40 CFR 60.24a(b) to read ``. . . in the form of an allowable rate, 
quantity, or concentration of emissions'' rather than ``. . . either be 
based on allowable rate or limit of emission''. Moreover, the EPA 
proposes to remove the phrase ``but not limited to'' from 40 CFR 
60.21a(f) as unnecessary and potentially confusing verbiage that is 
redundant of the word ``including,'' particularly where the definition 
already identifies a wide breadth of potential standards that may be 
included in a state plan.
---------------------------------------------------------------------------

    \51\ See 84 FR 32570, July 8, 2019 (explaining that the 
definition of ``standard of performance'' at 40 CFR 60.24a(b) is 
intended to permit either rate- or mass-based forms, depending on 
the considerations specific to a particular emission guideline).
---------------------------------------------------------------------------

ii. Compliance Flexibilities, Including Trading or Averaging
    CAA section 111(d) and these implementing regulations authorize the 
EPA to approve state plans establishing standards of performance that 
meet the emission guidelines promulgated by the EPA, including plans 
that authorize sources to meet their emission limits in the aggregate, 
such as through standards that permit compliance via trading or 
averaging. (The EPA herein refers to all these flexibilities as trading 
or averaging.) In taking this position that CAA section 111(d) and 
these implementing regulations authorize the EPA to approve state plans 
that include trading or averaging, the EPA is reversing, after 
reconsideration, the contrary interpretation of CAA section 111(d) 
provided in the ACE Rule. As a related matter, the EPA is also 
reversing the ACE Rule's interpretation that CAA section 111 limits the 
best system of emission reduction (BSER) to controls that can be 
applied at and to the source (commonly referred to as inside-the-
fenceline controls).
    Provisions of Section 111. Under CAA section 111(d)(1), each state 
is required to submit to the EPA ``a plan which . . . establishes 
standards of performance for any existing source'' that emits certain 
types of air pollutants, and which ``provides for the implementation 
and enforcement of such standards of performance.'' Under CAA section 
111(a)(1), a ``standard of performance'' is defined as ``a standard for 
emissions of air pollutants which reflects the degree of emission 
limitation achievable through the application of the best system of 
emission reduction . . . adequately demonstrated.'' Under CAA section 
111(a)(6) and (a)(3), ``existing source'' is defined as a ``stationary 
source,'' which, in turn, is defined, in relevant part, as ``any 
building, structure, facility or installation. . . .''
    Rulemaking and Caselaw. In the Clean Power Plan (CPP), the EPA 
interpreted the term ``system'' in CAA section 111(a)(1) to be broad 
and therefore to authorize the EPA to consider a wide range of measures 
from which to select the BSER. 80 FR 64662, 64720 (October 23, 2015). 
Similarly, the CPP took the position that states had broad flexibility 
in choosing compliance measures for their state plans. See, e.g., 80 FR 
64887, October 23, 2015. The CPP went on to determine that generation 
shifting qualified as the BSER, 80 FR 64707, October 23, 2015, and that 
states could include trading or averaging programs in their state plans 
for compliance. 80 FR 64840, October 23, 2015.
    The ACE Rule included the repeal of the CPP. It interpreted CAA 
section 111 so that the type of ``system'' that the EPA may select as 
the BSER is limited to a control measure that could be applied inside 
the fenceline of each source to reduce emissions at each source. 84 FR 
32523-24, July 8, 2019. Specifically, the ACE Rule argued that the 
requirements in CAA section 111(d)(1), (a)(3), and (a)(6) that each 
state establish a standard of performance ``for'' ``any existing 
source,'' defined, in general, as any ``building . . . [or] facility,'' 
and the requirements in CAA section 111(a)(1) that the degree of 
emission limitation must be ``achievable'' through the ``application'' 
of the BSER, by their terms, impose this limitation. The ACE Rule also 
concluded that the compliance measures the states include in their 
plans must ``correspond with the approach used to set the standard in 
the first place,'' 84 FR 32556, July 8, 2019, and therefore must also 
be limited to inside-the-fenceline measures that reduce the emissions 
of each source. For these reasons, the ACE Rule invalidated the CPP's 
generation-shifting system as the BSER, on grounds that it was an 
outside-the-fenceline measure, and precluded states from allowing their 
sources to trade or average to demonstrate compliance with their 
emission standards. 84 FR 32556-57, July 8, 2019.
    In 2021, the D.C. Circuit vacated the ACE Rule. American Lung Ass'n 
v. EPA, 985 F.3d 914. The Court held, among other things, that CAA 
section 111(d) does not limit the EPA, in determining the BSER, to 
inside-the-fenceline measures. The Court explained that contrary to the 
ACE Rule, the above-noted requirements in CAA section 111 that each 
state establish a standard of performance ``for'' any existing 
``building . . . [or] facility,'' mean that the state must establish 
standards applicable to each regulated stationary source; and the 
requirements that the degree of emission limitation must be achievable 
through the ``application'' of the BSER could be read to mean that the 
sources must be able to apply the system to reduce emissions across the 
source category. None of these requirements, the Court further 
explained, can be read to mandate that the BSER is limited to some 
measure that each source can apply to its own facility to reduce its 
own emissions in a specified amount. Id. at 944-51. The Court further 
held that the ACE Rule's premise for viewing compliance measures as 
limited to inside-the-fenceline, which is that BSER measures are so 
limited, was invalid for the same reason. The Court indicated that 
while requiring symmetry between the nature of the BSER and compliance 
measures ``would be reasonable'' where necessary to preserve the 
environmental outcomes a particular BSER was designed to achieve, a 
universal restriction on compliance measures could not be sustained by 
policy concerns that were not similarly universal. Id. at 957-58.
    In 2022, the U.S. Supreme Court reversed the D.C. Circuit's vacatur 
of the ACE Rule's embedded repeal of the Clean Power Plan. West 
Virginia v. EPA, 142 S. Ct. 2587 (2022). The Supreme Court made clear 
that CAA section 111 authorizes the EPA to determine the BSER and the 
amount of emission limitation that state plans must achieve. Id. at 
2601-02. However, the Supreme Court invalidated the CPP's generation-
shifting BSER under the major questions doctrine, explaining that the 
term ``system'' does not provide the ``clear congressional 
authorization,'' id. at 2614 (internal quotation marks omitted), needed 
to support a BSER ``of such

[[Page 79208]]

magnitude and consequence.'' Id. at 2615-16. The Court declined to 
address the D.C. Circuit's decision that the text of CAA section 111 
did not limit the type of ``system'' the EPA could consider as the BSER 
to inside-the-fenceline measures. See id. at 2615 (``We have no 
occasion to decide whether the statutory phrase ``system of emission 
reduction'' refers exclusively to measures that improve the pollution 
performance of individual sources, such that all other actions are 
ineligible to qualify as the BSER.'' (emphasis in original)). Nor did 
the Court rule on the scope of the states' compliance flexibilities.
    The EPA Interpretation. As noted above, the EPA has reconsidered 
the ACE Rule's interpretation of the compliance flexibilities available 
to States under CAA section 111 and now proposes to disagree that 
averaging and trading are universally precluded. With respect to 
compliance measures, the EPA proposes to agree with the D.C. Circuit's 
reasoning in rejecting the ACE Rule's limitations on those measures. 
American Lung Ass'n, 985 F.3d at 957-58. As noted above, CAA section 
111(d)(1) provides, in relevant part, that states ``establish[ ],'' 
``implement[ ],'' and ``enforce[ ]'' ``standards of performance for any 
existing source.'' CAA section 111(d) does not, by its terms, preclude 
states from having flexibility in determining which measures will best 
achieve compliance with the EPA's emission guidelines.
    Such flexibility is consistent with the framework of cooperative 
federalism that CAA section 111(d) establishes, which vests states with 
substantial discretion. As the U.S. Supreme Court has explained, CAA 
section 111(d) ``envisions extensive cooperation between Federal and 
state authorities, generally permitting each State to take the first 
cut at determining how best to achieve EPA emissions standards within 
its domain.'' American Elec. Power Co. v. Connecticut, 564 U.S. 410, 
428 (2011) (citations omitted). It should be noted that the flexibility 
that CAA section 111(d) grants to states in adopting measures for their 
state plans is by no means unfettered; rather, section 111(d)(2) 
requires the EPA to review state plans to assure that they are 
``satisfactory.''
    For the reasons just noted, the EPA proposes to disagree with the 
ACE Rule's conclusion that state plan compliance measures must always 
correspond with the approach the EPA uses to set the BSER, where the 
environmental outcomes of the emissions guidelines are not compromised 
by a lack of alignment. Moreover, after reconsideration, the EPA also 
proposes to reject the ACE Rule's interpretation that various 
provisions in CAA section 111 limit the type of ``system'' that may 
qualify as the BSER to inside-the-fenceline measures. 84 FR 32556, July 
8, 2019. Thus, there could be no comparable inside-the-fenceline 
statutory limitation on states' compliance flexibilities in developing 
their state plans. The EPA proposes to agree with the part of the D.C. 
Circuit's decision in American Lung Ass'n, 985 F.3d at 944-51, that 
rejected the ACE Rule's inside-the-fenceline statutory interpretation.
    The EPA recognizes, however, that while the U.S. Supreme Court in 
West Virginia expressly declined to address this part of the D.C. 
Circuit's decision, it did impose limits, through the application of 
the major questions doctrine, on the type of ``system'' that may 
qualify as the BSER. 142 S. Ct. at 2615-16. The EPA does not propose in 
this action to address the scope of those limits. Thus, the EPA is not 
proposing in this action to address whether it could include trading or 
averaging as part of the BSER--nor, for that matter, is it proposing to 
identify any particular control mechanism that could or could not be 
part of the BSER--in light of those limits. Instead, the EPA may 
address further those limits, and their implications for the legality 
of particular systems of emission reduction and state compliance 
measures, in future emission guidelines.
    Under the EPA's proposed interpretation of CAA section 111, the 
provision permits each state to adopt measures that allow its sources 
to meet their emission limits in the aggregate, when the EPA 
determines, in any particular emission guideline, that it is 
appropriate to do so, given, inter alia, the pollutant, sources, and 
standards of performance at issue. Thus, it is the EPA's proposed 
position that CAA section 111(d) authorizes the EPA to approve state 
plans, in particular emission guidelines, that achieve the requisite 
emission limitation through the aggregate reductions from their 
sources, including through trading or averaging, where appropriate for 
a particular emission guideline and consistent with the intended 
environmental outcomes of the guideline.
    We also note that the EPA has authorized trading or averaging as 
compliance methods in several emission guidelines. In 1995, the EPA 
authorized emissions trading in emission guidelines for municipal waste 
combustors. 60 FR 65387, 65402 (December 19, 1995); see 40 CFR 
60.33b(d)(2) (``A State plan may establish a program to allow owners or 
operators of municipal waste combustor plants to engage in trading of 
nitrogen oxides emission credits.''). In 2005, the EPA authorized 
allowance trading in the Clean Air Mercury Rule, 70 FR 28606, 28617 
(May 18, 2005). This rule was vacated by the D.C. Circuit on other 
grounds. New Jersey v. EPA, 517 F.3d 574 (D.C. Cir. 2008). Moreover, 
alongside the 2005 Mercury Rule, the EPA amended the CAA section 111 
implementing regulations subpart B to provide that a state's 
``[e]mission standards [may] be based on an allowance system,'' 70 FR 
28649, May 18, 2005 (promulgating 40 CFR 60.24(b)(1) (2005)), 
provisions that by their terms contemplated trading and that remained 
in place until rescinded by the ACE Rule. In addition, the 2015 CPP 
also authorized trading or averaging as a compliance strategy. 80 FR 
64662, 64840 (October 23, 2015). Thus, the EPA has long interpreted CAA 
section 111(d) as permitting, in appropriate circumstances, flexible 
mechanisms to comply with the EPA's emission guidelines, and the EPA 
now proposes to return to this interpretation.
    In addition, there is no provision in these implementing 
regulations that precludes state plans from authorizing sources to 
trade or average to demonstrate compliance with their standards. In 
particular, the proposed revisions in the definition of ``standard of 
performance'' in these regulations, described in section III.G.1.a of 
this preamble, would not impose that limit. For example, states could 
authorize their sources to comply with an ``allowable quantity . . . of 
emissions'' by trading allowances or with an ``allowable rate . . . of 
emissions'' by trading or averaging credits. It should be noted that in 
promulgating particular emission guidelines, the EPA proposes that it 
may preclude certain flexibilities, on the grounds, for example, that 
for the particular source category or pollutant in question, 
implementation of those flexibilities would undermine the amount of 
emission reductions that the EPA designed the guidelines to achieve and 
thus would not achieve equivalent emissions reductions.
2. Minor Amendments or Clarifications
    The EPA is proposing the following minor amendments to the 
regulatory text in subpart Ba to address the following editorial and 
other minor clarifications.
    i. The EPA is proposing to amend the applicability provision for 
subpart Ba under 40 CFR 60.20a, to clarify that the provisions of 
subpart Ba are applicable

[[Page 79209]]

to EGs published after July 8, 2019. The current language in this 
provision states that subpart Ba also applies to EGs if implementation 
of such guidelines is ongoing as of July 8, 2019. However, such EGs are 
a null set,\52\ therefore the EPA is proposing to remove this text so 
that it is clear that the provisions in subpart Ba only apply to final 
EGs published after July 8, 2019. Emission guidelines issued prior to 
July 8, 2019, are subject to the provisions of subpart B instead of 
subpart Ba.
---------------------------------------------------------------------------

    \52\ The Municipal Solid Waste Landfills EG, which is currently 
being implemented, has its own applicability provisions and is 
subject to subpart B.
---------------------------------------------------------------------------

    ii. The EPA proposes to amend 40 CFR 60.21a(e), 60.22a(c), 
60.24a(c), and 60.24a(n)(1) and (2) by deleting subpart C from the 
provisions because EGs can be codified in other subparts of this part 
and not only in subpart C of this part.
    iii. The EPA proposes to amend 40 CFR 60.27a(a) by replacing the 
word ``shorten'' with ``amend''. The applicability provision at 40 CFR 
60.20a(a)(1) states that ``each emission guideline may include specific 
provisions in addition to or that supersede requirements of this 
subpart.'' However, the provision in 40 CFR 60.27a(a) only provides for 
the Administrator to ``shorten the period for submission of any plan or 
plan revision or portion thereof''. To make these two provisions 
consistent in light of the proposed timelines for plan submission 
included in this action, the EPA is proposing to replace the word 
``shorten'' with ``amend.''
    iv. The EPA is also proposing an editorial amendment to 40 CFR part 
60 subpart A at 60.1(a) to add a reference to subpart Ba. The 
applicability provision in 40 CFR 60.1(a) states that ``Except as 
provided in subparts B and C, the provisions of this part apply to the 
owner or operator of any stationary source which contains an affected 
facility, the construction or modification of which is commenced after 
the date of publication in this part of any standard (or, if earlier, 
the date of publication of any proposed standard) applicable to that 
facility''. We are proposing to amend this provision to include 
reference to subpart Ba in addition to subparts B and C.
    The EPA solicits comment on the proposed clarifications as 
described in section III.G.2 of this preamble. (Comment G2-1).
3. Submission of Emissions Data and Related Information
    The EPA proposes to amend 40 CFR 60.25a(a) by deleting reference to 
40 CFR part 60 appendix D because the system specified for information 
submittal by the appendix is no longer in use. The proposed amendments 
clarify that the applicable EG will specify the system for submission 
of the inventory of designated facilities, including emission data for 
the designated pollutants and any additional required information.
4. State Permit and Enforcement Authority
    Questions have previously arisen as to whether states may establish 
standards of performance and other plan requirements as part of state 
permits and administrative orders. The EPA is not proposing a 
regulatory amendment on this point but confirms that subpart Ba allows 
for standards of performance and other state plan requirements to be 
established as part of state permits and administrative orders, which 
are then incorporated into the state plan. See 40 CFR 60.27a(g)(2)(ii).
    However, the EPA notes that the permit or administrative order 
alone may not be sufficient to meet the requirements of an EG or the 
implementing regulations, including the completeness criteria under 40 
CFR 60.27a(g). For instance, a plan submittal must include supporting 
material demonstrating the state's legal authority to implement and 
enforce each component of its plan, including the standards of 
performance. Id. at 40 CFR 60.27a(g)(2)(iii). In addition, the specific 
EGs may also require demonstrations that may not be satisfied by terms 
of a permit or administrative order. To the extent that these and other 
requirements are not met by the terms of the incorporated permits and 
administrative orders, states will need to include materials in a state 
plan submission demonstrating how the plan meets those requirements. If 
a state does choose to use permits or administrative orders to 
establish standards of performance, it needs to demonstrate that it has 
the legal authority to do so. The implementing regulations do not 
themselves provide any independent or additional authority to issue 
permits and administrative orders under states' EPA approved title I 
and title V permitting programs. The EPA solicits comment on these 
proposed clarifications to state permit and enforcement authority 
(Comment G4-1).

IV. Statutory and Executive Order Reviews

    Additional information about these Statutory and Executive Orders 
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is a significant regulatory action that was submitted 
to the Office of Management and Budget (OMB) for review because it may 
raise novel legal or policy issues arising out of legal mandates, the 
President's priorities or the principles set forth in the Executive 
Order. Any changes made in response to OMB recommendations have been 
documented in the docket.
    This action proposes amendments to 40 CFR part 60, subpart Ba, the 
general provisions that provide a framework for the development, 
adoption, and submittal of state plans for implementation of CAA 
section 111(d) EGs. The EGs provide for regulation of emissions of 
designated pollutants from existing facilities within specific source 
categories. The proposed amendments will only be applicable to EGs 
promulgated after July 8, 2019, to the extent the EG does not supersede 
the requirements of subpart Ba. The proposed amendments will not impact 
legacy EGs subject to the requirements of 40 CFR part 60, subpart B.
    The impacts of the amendments proposed here on the benefits and 
costs of a potential EG subject to subpart Ba can vary greatly 
depending on the source category, number and location of designated 
facilities, and the designated pollutant and potential controls 
addressed. Additionally, the EPA may propose to supersede these general 
provisions in a particular EG, as needed and with appropriate 
justification. Emission guidelines are subject to notice and comment 
rulemaking, providing the opportunity for stakeholders, including the 
public, to consider the impacts of implementing or superseding these 
amendments during those rule making actions.
    The EPA expects that the overall impacts of the implementation of 
the amendments to subpart Ba being proposed in this action will improve 
the implementation of EGs under CAA section 111(d). In particular, the 
EPA expects that the timelines proposed in this action both 
appropriately accommodate the process required by states and the EPA to 
develop and evaluate plans to effectuate an EG and are consistent with 
the objective of CAA section 111(d) to ensure that designated 
facilities expeditiously control emissions of pollutants that the EPA 
has determined may be reasonably anticipated to endanger public health 
or welfare. The potential impacts of

[[Page 79210]]

amendments associated with timelines is addressed in more detail below.
    As described in detail in section III.A.1 of this preamble, the EPA 
is proposing 15 months for state plan submissions after publication of 
a final EG. The EPA expects the additional time proposed for subpart Ba 
compared with the 9 months provided in subpart B will better 
accommodate the process required by states and the EPA to develop plans 
to effectuate the applicable EG. Under the proposed state plan 
submission timeframe, the costs of developing the plans may be spread 
over 6 additional months. These additional 6 months also provide for 
the time needed by states to meet the proposed requirements associated 
with meaningful engagement and RULOF. As discussed in sections III.A.1 
and III.A.3 of this preamble, the EPA does not interpret the ALA 
court's direction to require a quantitative measure of impact, but 
rather consideration of the importance of the public health and welfare 
goals when determining appropriate deadlines for implementation of 
regulations under CAA section 111(d). In proposing the state plan 
submittal timeline, the EPA is allowing states sufficient time to 
develop feasible implementation plans for their designated facilities 
that adequately address public health and environmental objectives. By 
allowing sufficient time for states to develop their state plans, the 
EPA has considered the importance of the public health and welfare 
goals as the proposed state planning process timing ultimately helps 
ensure timelier implementation of an EG, and therefore achievement of 
actual emission reductions, than would an unattainable deadline that 
may result in the failure of states to submit plans and require the 
development and implementation of a Federal plan. In addition, a 
successful submittal of approvable state plans will avoid an attendant 
expenditure of Federal resources associated with the development of a 
Federal plan.
    As described in detail in sections III.A.3 and III.A.4 of this 
preamble, the EPA is proposing 12 months for the EPA to take final 
action on a state plan after a submission is found to be complete and 
12 months for the EPA to promulgate a Federal plan either after the 
state plan deadline, if a state has failed to submit a complete plan, 
or after the EPA's disapproval of a state plan submission. The EPA is 
further proposing to streamline the timeframe for the EPA's 
determination of completeness on a state plan submission from six 
months to 60 days from receipt of the state plan submission (see 
section III.A.2 of this preamble). As described in detail in section 
III of this preamble, because these proposed timeframes provide for the 
administrative time reasonably necessary for EPA to accomplish such 
actions in an expeditious manner, the EPA expects these timeframes will 
minimize the impacts on public health and welfare while ensuring that 
an EG is expeditiously implemented.
    As described in detail in section III.A.5 of this preamble, the EPA 
is proposing to require that state plans include increments of progress 
if the plan requires final compliance with standards of performance 
later than 16 months after the plan submission deadline. The EPA 
expects the additional time of 4 months provided in the proposed 
amendments, compared to the requirement in subpart B, provides a 
reasonable time period for owners or operators of designated facilities 
to initiate actions associated with the increments of progress, thus 
ensuring a successful implementation of the increments of progress. Any 
specific requirements associated with increments of progress would be 
included in the EG, as these are dependent on the source type, 
pollutant, and control strategy addressed.
    The EPA is also proposing amendments to subpart Ba to enhance 
requirements for reasonable notice and opportunity for public 
participation. In particular, the EPA is proposing to require that 
states, as part of the state plan development or revision process or if 
invoking RULOF provisions, undertake outreach and meaningful engagement 
with a broad range of pertinent stakeholders. Pertinent stakeholders 
include communities most affected by and vulnerable to the impacts of 
the plan or plan revision (see section III.C of this preamble).
    Overall, the EPA expects these amendments will benefit the states 
in the development of approvable state plans. The EPA expects that the 
proposed requirements associated with meaningful engagement with 
pertinent stakeholders and RULOF would potentially increase the amount 
of information the states can use in designing standards, which may 
increase both the level of resources states will need to employ in the 
development of an approvable plan, as well as the resulting health and 
welfare benefits of the standards. At the same time, there are benefits 
of engaging with stakeholders and receiving pertinent information as a 
state plan is being developed. Such engagement may improve the record 
for the state's plan and reduce the amount of comments received when 
the state plan is proposed to the public, which would reduce the amount 
of effort employed after proposal to address issues raised by the 
public and stakeholders.
    There is a lot of variation and uncertainty in determining the 
magnitude of impacts, both to states and the public, resulting from 
amendments associated with meaningful engagement in any particular EG. 
The impacts of conducting meaningful engagement will be highly 
dependent on the number and location of designated facilities addressed 
by an EG, as well as on the type of health or environmental impacts of 
the associated emissions. If stakeholder and public involvement 
required by the proposed amendments does not generate a large number of 
specific and unique comments, data, or other considerations, then the 
level of effort states will employ to review them will be lower in 
comparison to when meaningful engagement comments are voluminous. Also, 
to the extent that states already employ significant engagement with 
pertinent stakeholders, the proposed meaningful engagement amendments 
would not result in additional costs, while other states that do not 
have engagement procedures already in place may be required to increase 
their level of effort to engage with pertinent stakeholders. The burden 
and benefits of meaningful engagement for the pertinent stakeholders 
will also be highly dependent on the EG and associated variables such 
as, but not limited to, the geographical distribution of the facilities 
and communities impacted, available modes of participation for those 
areas, the pollutants addressed, and the range of options available to 
the state and facilities for meeting the EG standards. The burden and 
benefits to pertinent stakeholders may be difficult to quantify, but 
overall, their engagement will be voluntary and is anticipated to 
result in feedback that may improve the resulting health and welfare 
benefits of the standards as perceived and experienced, particularly by 
those in communities most affected by and vulnerable to the impacts of 
the plan.
    The EPA is proposing revisions to the RULOF provision in subpart 
Ba. The amendments included in this proposed action are intended to 
provide clarity and consistency for states and the EPA in considering 
RULOF when applying standards of performance to individual sources, 
while still fulfilling the statutory purpose of CAA section 111(d) (see 
section III.E of this preamble).
    The magnitude of impacts, both to states and the public, resulting 
from amendments associated with the

[[Page 79211]]

proposed RULOF amendments, will vary depending on the particular EG to 
which the proposed provisions would apply. If a state does not invoke 
RULOF in their state plan, then the proposed amendments will not result 
in additional costs. If a state does invoke RULOF in their state plan, 
then the proposed amendments could result in an increased level of 
effort to develop standards of performance for certain sources. As 
such, the EPA expects the RULOF proposed amendments will potentially 
increase the level of resources states will need to employ in the 
development of an approvable plan. However, because the proposed 
amendments clarify what the EPA considers to be a satisfactory plan, 
the amendments would reduce the uncertainty of states and designated 
facilities in the development of such standards. This in turn could 
result in a decrease in the amount of time that a state that wished to 
invoke RULOF would need, relative to a situation where the requirements 
were less defined, by avoiding significant back and forth with EPA and 
the sources in the state during state plan development. Overall, the 
EPA expects the RULOF amendments will benefit the states in the 
development of approvable state plans and in the resulting benefits to 
public health and welfare.
    Finally, the EPA expects proposed amendments for electronic 
submittal and for the availability of optional regulatory mechanisms 
will improve flexibility and efficiency in the call for and submission, 
review, approval, and implementation of state plans, and thus will 
overall result in benefits to the states, EPA, designated facilities, 
and public health and welfare. In addition, the EPA expects the 
proposed amendments for electronic submittal will increase the ease and 
efficiency of data submittal and data accessibility and benefit the 
states and EPA. Electronic submittal will also improve the Agency's 
efficiency and effectiveness in the receipt and review of state plans.
    While specific analysis of cost and benefit impacts will be 
addressed through individual EGs and associated notice and comment 
rulemaking, we request comments throughout this preamble more generally 
on the potential impacts associated with the amendments to subpart Ba 
being proposed in this action.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the Paperwork Reduction Act. The requirements in subpart Ba do not 
themselves require any reporting and recordkeeping activities, and no 
Information Collection Request (ICR) was submitted in connection with 
the original promulgation of the Ba subpart or the amendments we are 
proposing at this time. Any recordkeeping and reporting requirements 
are imposed only through the incorporation of specific elements of the 
Ba in the individual Emission Guidelines, which have their own ICRs.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities. This proposed rule 
will not impose any requirements on small entities. Specifically, this 
action addresses processes related to state plans for implementation of 
EGs established under CAA section 111(d).

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. This proposed 
action does not contain a Federal mandate that may result in 
expenditures of $100 million or more for state, local, and tribal 
governments, in the aggregate or the private sector in any 1 year.
    This proposed action is also not subject to the requirements of 
section 203 of UMRA because, as described in 2 U.S.C. 1531-38, it 
contains no regulatory requirements that might significantly or 
uniquely affect small governments. This action imposes no enforceable 
duty on any local, or tribal governments or the private sector. 
However, this action imposes enforceable duties on states. This action 
does not meaningfully require additional mandates on states beyond what 
is already required of them and will not impose a burden in excess of 
$100 million.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the National Government and the states, or on the distribution of power 
and responsibilities among the various levels of government. The EPA 
believes, however, that this action may be of significant interest to 
state governments.
    Subpart Ba requirements apply to states in the development and 
submittal of state plans pursuant to emission guidelines promulgated 
under CAA section 111(d) after July 8, 2019, to the extent that an EG 
does not supersede the requirements of subpart Ba. This action proposes 
amendments to certain requirements for development, submission, and 
approval processes of state plans under CAA section 111(d). In 
particular, the proposed amendments associated to state plan submission 
deadlines, RULOF provisions, meaningful engagement, and regulatory 
mechanisms may be of significant interest to state governments. In 
section IV.A. of this preamble, the EPA describes the potential impacts 
of the implementation of the amendments to subpart Ba being proposed in 
this action. Overall, the EPA expects these amendments will benefit the 
states in the development of approvable state plans.
    The EPA notes that notice and comment procedures required for the 
promulgation of individual EGs will provide opportunity for states to 
address issues related to federalism based on specific application of 
subpart Ba requirements to that particular EG.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175. It would not impose substantial direct 
compliance costs on tribal governments that have designated facilities 
located in their area of Indian country. Tribes are not required to 
develop plans to implement the guidelines under CAA section 111(d) for 
designated facilities. This action also will not have substantial 
direct costs or impacts on the relationship between the Federal 
government and Indian tribes or on the distribution of power and 
responsibilities between the Federal government and Indian tribes, as 
specified in Executive Order 13175. Thus, Executive Order 13175 does 
not apply to the action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk.

[[Page 79212]]

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not a ``significant energy action'' because it will 
not have a significant adverse effect on the supply, distribution or 
use of energy. Specifically, this action addresses the submission and 
adoption of state plans for implementation of EGs established under CAA 
section 111(d).

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations and/or indigenous peoples as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). The 
EPA believes that this action will advance protection for these 
communities by specifying requirements for balanced stakeholder 
outreach and meaningful public engagement as described in section III.C 
and section III.E.8 of this action.

K. Determination Under Section CAA 307(d)

    Pursuant to CAA section 307(d)(1)(V), the Administrator determines 
that this action is subject to the provisions of CAA section 307(d). 
Section 307(d)(1)(V) of the CAA provides that the provisions of CAA 
section 307(d) apply to ``such other actions as the Administrator may 
determine.''

Michael S. Regan,
Administrator.
[FR Doc. 2022-27557 Filed 12-22-22; 8:45 am]
BILLING CODE 6560-50-P