80_FR_44143 80 FR 44001 - Approval of Air Plans; California; Multiple Districts; Prevention of Significant Deterioration

80 FR 44001 - Approval of Air Plans; California; Multiple Districts; Prevention of Significant Deterioration

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 80, Issue 142 (July 24, 2015)

Page Range44001-44005
FR Document2015-18081

The EPA is proposing approval of five permitting rules submitted for inclusion in the California State Implementation Plan (SIP). The State of California (State) is required under the Clean Air Act (CAA or Act) to adopt and implement a SIP-approved Prevention of Significant Deterioration (PSD) permit program. This SIP revision proposes to incorporate PSD rules for five local California air districts into the SIP to establish a PSD permit program for pre- construction review of certain new and modified major stationary sources in attainment and unclassifiable areas. The local air districts with PSD rules that are the subject of this proposal are the Feather River Air Quality Management District (Feather River or FRAQMD), Great Basin Unified Air Pollution Control District (Great Basin or GBUAPCD), Butte County Air Quality Management District (Butte or BCAQMD), Santa Barbara County Air Pollution Control District (Santa Barbara or SBAPCD), and San Luis Obispo County Air Pollution Control District (San Luis Obispo or SLOAPCD)--collectively, the Districts. We are soliciting public comment on this proposal and plan to follow with a final action after consideration of comments received.

Federal Register, Volume 80 Issue 142 (Friday, July 24, 2015)
[Federal Register Volume 80, Number 142 (Friday, July 24, 2015)]
[Proposed Rules]
[Pages 44001-44005]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-18081]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2015-0257; FRL-9931-04-Region 9]


Approval of Air Plans; California; Multiple Districts; Prevention 
of Significant Deterioration

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA is proposing approval of five permitting rules 
submitted for inclusion in the California State Implementation Plan 
(SIP). The State of California (State) is required under the Clean Air 
Act (CAA or Act) to adopt and implement a SIP-approved Prevention of 
Significant Deterioration (PSD) permit program. This SIP revision 
proposes to incorporate PSD rules for five local California air 
districts into the SIP to establish a PSD permit program for pre-
construction review of certain new and modified major stationary 
sources in attainment and unclassifiable areas. The local air districts 
with PSD rules that are the subject of this proposal are the Feather 
River Air Quality Management District (Feather River or FRAQMD), Great 
Basin Unified Air Pollution Control District (Great Basin or GBUAPCD), 
Butte County Air Quality Management District (Butte or BCAQMD), Santa 
Barbara County Air Pollution Control District (Santa Barbara or 
SBAPCD), and San Luis Obispo County Air Pollution Control District (San 
Luis Obispo or SLOAPCD)--collectively, the Districts. We are soliciting 
public comment on this proposal and plan to follow with a final action 
after consideration of comments received.

DATES: Any comments must be submitted no later than August 24, 2015.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2015-0257, by one of the following methods:
    1. Federal eRulemaking Portal: www.regulations.gov. Follow the 
online instructions.
    2. Email: R9airpermits@epa.gov.
    3. Mail or deliver: Lisa Beckham (Air-3), U.S. Environmental 
Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 
94105-3901.
    Instructions: All comments will be included in the public docket 
without change and may be made available online at www.regulations.gov, 
including any personal information provided, unless the comment 
includes Confidential Business Information (CBI) or other information 
the disclosure of which is restricted by statute. Information that you 
consider CBI or otherwise protected should be clearly identified as 
such and should not be submitted through www.regulations.gov or email. 
www.regulations.gov is an ``anonymous access'' system, and the EPA will 
not know your identity or contact information unless you provide it in 
the body of your comment. If you send email directly to the EPA, your 
email address will be automatically captured and included as part of 
the public comment. 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.
    Docket: The index to the docket for this proposed action is 
available electronically at www.regulations.gov, docket number EPA-R09-
OAR-2015-0257, and in hard copy at EPA Region IX, 75 Hawthorne Street, 
San Francisco, California. While all documents in the docket are listed 
in the index, some information may be publicly available only at the 
hard copy location (e.g., copyrighted material), and some may not be 
publicly available in either location (e.g., CBI). To inspect the hard 
copy materials, please schedule an appointment during normal business 
hours with the contact listed in the FOR FURTHER INFORMATION CONTACT 
section below. Due to building security procedures, appointments must 
be scheduled at least 48 hours in advance.

FOR FURTHER INFORMATION CONTACT: Lisa Beckham, Permits Office (AIR-3), 
U.S. Environmental Protection Agency, Region IX, (415) 972-3811, 
beckham.lisa@epa.gov.

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

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rules?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating these rules?
    B. Do the rules meet the evaluation criteria?
    C. Significant impact levels and significant monitoring 
concentrations for PM2.5.
    D. Greenhouse Gases
    E. Transfer of existing permits issued by the EPA
    F. Public comment and proposed action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

[[Page 44002]]

I. The State's Submittal

A. What rules did the State submit?

    Table 1 identifies the rules on which we are proposing action along 
with the dates on which each rule was adopted by the local air district 
and submitted to the EPA by the California Air Resources Board (CARB). 
On June 1, 2015, CARB requested the withdrawal from its earlier SIP 
submittals of these local air district rules the portion of each rule 
that incorporates a specific federal PSD rule provision--40 CFR 
52.21(b)(49)(v). As such, our proposed approval of these local air 
district rules does not include the rules' incorporation by reference 
of 40 CFR 52.21(b)(49)(v).

                                            Table 1--Submitted Rules
----------------------------------------------------------------------------------------------------------------
            Local agency                   Rule No.             Rule title            Adopted        Submitted
----------------------------------------------------------------------------------------------------------------
FRAQMD..............................  10.10               Prevention of                 8/1/2011       4/22/2013
                                                           Significant
                                                           Deterioration.
GBUAPCD.............................  221                 Prevention of                 9/5/2012        2/6/2013
                                                           Significant
                                                           Deterioration (PSD)
                                                           Permit Requirements
                                                           for New Major
                                                           Facilities or Major
                                                           Modifications in
                                                           Attainment or
                                                           Unclassifiable Areas.
BCAQMD..............................  1107                Prevention of                6/28/2012        2/6/2013
                                                           Significant
                                                           Deterioration (PSD)
                                                           Permits.
SBAPCD..............................  810                 Federal Prevention of        6/20/2013       2/10/2014
                                                           Significant
                                                           Deterioration (PSD).
SLOAPCD.............................  220                 Federal Prevention of        1/22/2014       5/13/2014
                                                           Significant
                                                           Deterioration.
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    The submitted rules were found to meet the completeness criteria in 
40 CFR part 51, appendix V, which must be met before formal review by 
the EPA.

B. Are there other versions of these rules?

    There are no previous versions of the rules in Table 1 in the 
California SIP.

C. What is the purpose of the submitted rules?

    Section 110(a) of the CAA requires states to adopt and submit 
regulations for the implementation, maintenance and enforcement of the 
primary and secondary NAAQS. Specifically, sections 110(a)(2)(C), 
110(a)(2)(D)(i)(II), and 110(a)(2)(J) of the Act require such state 
plans to meet the applicable requirements of section 165 relating to a 
pre-construction permit program for the prevention of significant 
deterioration of air quality and visibility protection. The rules 
reviewed for this action are intended to implement a pre-construction 
PSD permit program as required by section 165 of the CAA for certain 
new and modified major stationary sources located in attainment and 
unclassifiable areas. Because the State does not currently have a SIP-
approved PSD program within the Districts, the EPA is currently the PSD 
permitting authority within these Districts. Approval of the Districts' 
PSD rules into the SIP will transfer PSD permitting authority from the 
EPA to the Districts. The EPA would then assume the role of overseeing 
the Districts' PSD permitting programs, as intended by the CAA.

II. The EPA's Evaluation and Action

A. How is the EPA evaluating these rules?

    The relevant statutory provisions for our review of the submitted 
rules include CAA sections 110(a), 110(l), and 165 and part 51, Sec.  
51.166 of title 40 of the Code of Federal Regulations (40 CFR 51.166). 
Section 110(a) requires, among other things, that SIP rules be 
enforceable, while section 110(l) precludes the EPA's approval of SIP 
revisions that would interfere with any applicable requirements 
concerning attainment and reasonable further progress. Section 165 of 
the CAA requires states to adopt a pre-construction permitting program 
for certain new and modified major stationary sources located in 
attainment areas and unclassifiable areas. 40 CFR 51.166 establishes 
the specific requirements for SIP-approved PSD permit programs that 
must be met to satisfy the requirements of section 165 of the CAA.

B. Do the rules meet the evaluation criteria?

    With some exclusions and revisions, the Districts' PSD rules 
incorporate by reference the EPA's PSD permit program requirements at 
40 CFR 52.21, as of particular dates. We generally consider the EPA's 
PSD permit program requirements at 40 CFR 52.21 to be consistent with 
the criteria for SIP-approved PSD permit programs in 40 CFR 51.166. 
However, we conducted a review of each District PSD rule to ensure that 
all requirements of 40 CFR 51.166 were met by each such rule. Our 
detailed evaluation is available as an attachment to the technical 
support document (TSD) for this proposed rulemaking action. We also 
reviewed the revisions that the Districts made to the provisions of 40 
CFR 52.21 that were incorporated by reference into each rule, such as 
revising certain terms and definitions to reflect that the Districts, 
rather than the EPA, will be the PSD permitting authority. In addition, 
we reviewed revisions made to 40 CFR 51.166 and 40 CFR 52.21 after each 
District adopted its PSD rule. Please see the TSD for additional 
information. Based on our review of these rules, the underlying 
statutes and regulations, and clarifying information that the Districts 
provided in letters dated November 13, 2014, November 25, 2014, 
December 16, 2014, December 18, 2014, April 8, 2015, and April 15, 
2015, we are proposing to find the SIP revision for the Districts' PSD 
rules acceptable under CAA sections 110(a), 110(l) and 165 and 40 CFR 
51.166.
    The EPA's TSD for this rulemaking action has more information about 
these rules, including our evaluation and recommendation to approve 
them into the SIP.

C. Significant Impact Levels and Significant Monitoring Concentrations 
for PM2.5

    On January 22, 2013, the U.S. Court of Appeals for the District of 
Columbia (D.C. Circuit or Court) in Sierra Club v. EPA, 705 F.3d 458, 
granted a request from the EPA to vacate and remand to the EPA the 
portions of two PSD rules (40 CFR 51.166(k)(2) and 40 CFR 52.21(k)(2)) 
addressing the significant impact levels (SILs) for PM2.5 so 
that the EPA could voluntarily correct an error in these provisions. 
The D.C. Circuit also vacated the parts of these two PSD rules (40 CFR 
51.166(i)(5)(i)(c) and 40 CFR 52.21(i)(5)(i)(c)) establishing a 
PM2.5 significant monitoring concentration (SMC), finding 
that the EPA was precluded from using the PM2.5 SMC to 
exempt permit applicants from the statutory requirement to compile and 
submit preconstruction monitoring data as part of a complete PSD 
application. On December 9, 2013, revisions to 40 CFR 51.166 and 52.21 
were published in the Federal Register to remove the affected 
provisions from the PSD regulations, effective as of that date. 78 FR 
73698.

[[Page 44003]]

    As Feather River Rule 10.10 incorporates 40 CFR 52.21 by reference 
as in effect prior to the D.C. Circuit's decision, the rule 
incorporates by reference an earlier version of 40 CFR 52.21 that 
contains the PM2.5 SILs \1\ and SMC provisions that were 
later vacated by the D.C. Circuit and removed from 40 CFR 52.21 by the 
EPA. Accordingly, the EPA requested clarification from Feather River 
concerning its interpretation of Rule 10.10 to the extent that it 
incorporates by reference these provisions.
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    \1\ The PSD rules submitted by Great Basin, Butte, and San Luis 
Obispo specifically excluded the PM2.5 SILs from their 
incorporation by reference of 40 CFR 52.21. Santa Barbara's PSD rule 
incorporated by reference 40 CFR 52.21 as in effect after the 
PM2.5 SILs were vacated by the Court and no longer in 
effect, and thus does not include the PM2.5 SILs.
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    Great Basin Rule 221 and Butte Rule 1107 also incorporate 40 CFR 
52.21 by reference as in effect prior to January 22, 2013. While these 
two District PSD rules specifically exclude the PM2.5 SILs 
provisions that were vacated by the D.C. Circuit, they do contain the 
PM2.5 SMC provisions that were vacated by the Court and 
removed from 40 CFR 52.21 by the EPA.\2\ Accordingly, the EPA requested 
clarification from Great Basin and Butte concerning their 
interpretation of Rules 221 and 1107, respectively, to the extent they 
incorporate by reference these PM2.5 SMC provisions.
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    \2\ San Luis Obispo's PSD rule specifically revised its rule 
language concerning the PM2.5 SMC to be consistent with 
the Court's decision. Santa Barbara's PSD rule incorporated by 
reference 40 CFR 52.21 as in effect after the PM2.5 SMC 
was vacated by the Court and no longer in effect, and thus does not 
include the PM2.5 SMC.
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    With respect to the PM2.5 SILs, Feather River Rule 10.10 
incorporates by reference an earlier version of 40 CFR 52.21 that 
contained the PM2.5 SILs provisions that were later vacated 
by the D.C. Circuit and removed from 40 CFR 52.21 by the EPA. 40 CFR 
52.21(k)(1) requires that a source applying for a new PSD permit 
demonstrate that any allowable emission increases from the proposed 
source or modification, in conjunction with all other applicable 
emissions increases or reductions, will not cause or contribute to a 
violation of any NAAQS or any applicable increment. In the preamble to 
the 2010 final rule adding the 40 CFR 52.21(k)(2) provision, the EPA 
advised that, ``notwithstanding the existence of a SIL, permitting 
authorities should determine when it may be appropriate to conclude 
that even a de minimis impact will `cause or contribute' to an air 
quality problem and to seek remedial action from the proposed new 
source or modification.'' Prevention of Significant Deterioration (PSD) 
for Particulate Matter Less than 2.5 Micrometers (PM2.5)--
Increments, Significant Impact levels (SILs) and Significant Monitoring 
Concentration (SMC), 75 FR 64,864, 64,892 (Oct. 20, 2010). In another 
passage of the preamble, the EPA also observed that ``the use of a SIL 
may not be appropriate when a substantial portion of any NAAQS or 
increment is known to be consumed.'' Id. at 64,894. The D.C. Circuit's 
decision in Sierra Club v. EPA held that, contrary to these statements 
in the preamble, the text of the (k)(2) provision ``does not give 
permitting authorities sufficient discretion to require a cumulative 
air quality analysis'' under such circumstances. 705 F.3d at 464.
    Consistent with the Court's decision in Sierra Club v. EPA and the 
statements by the EPA in the preamble to the 2010 final rule that are 
discussed above, Feather River affirmed in a letter dated December 18, 
2014 that it does not interpret Sec.  52.21(k)(2), as incorporated by 
reference in Rule 10.10, to preclude FRAQMD from exercising discretion 
to determine when it may be appropriate to conclude that an impact 
below the PM2.5 SIL values in Sec.  52.21(k)(2) will cause 
or contribute to an air quality problem and to seek remedial action 
from the proposed new source or modification. Such discretion is 
necessary to ensure adherence to the requirement of the Clean Air Act 
that a PSD project not cause or contribute to a violation of any NAAQS 
or any applicable increment. Based on this interpretation, the District 
affirmed in the December 18, 2014 letter that it will not read Sec.  
52.21(k)(2), as incorporated by reference in District Rule 10.10, as an 
absolute ``safe harbor,'' but will exercise discretion to determine 
whether a particular application of the PM2.5 SIL values is 
appropriate when a substantial portion of the PM2.5 NAAQS or 
increment is known to be consumed. The District confirmed that it 
retains the discretion to require additional information from a permit 
applicant as needed to assure that the source will not cause or 
contribute to a violation of any NAAQS or applicable increment pursuant 
to Sec.  52.21(k)(1).
    As noted above, Feather River Rule 10.10, Great Basin Rule 221, and 
Butte Rule 1107 also incorporated by reference an earlier version of 
the federal regulation at Sec.  52.21(i)(5)(i) that contains the 
PM2.5 SMC, which provides that each District may exempt a 
proposed major stationary source or major modification from the 
requirements of paragraph (m) of this section, with respect to 
monitoring for a particular pollutant, if the emissions increase or net 
emissions increase is below the applicable SMC. Feather River, Butte, 
and Great Basin confirmed in their letters dated December 18, 2014, 
April 8, 2015, and April 15, 2015 that this provision, specifically at 
Sec.  52.21(i)(5)(i)(c), as incorporated into each rule, provides the 
Districts with the discretion to determine whether it is appropriate to 
apply the SMC for PM2.5 to exempt a permit applicant from 
the requirement to compile and submit preconstruction ambient 
monitoring data for PM2.5 as part of a complete PSD 
application. Consistent with the D.C. Circuit's decision in Sierra Club 
v. EPA vacating the PM2.5 SMC, the Districts affirmed in 
their letters dated December 18, 2014, April 8, 2015, and April 15, 
2015 that they will not exercise their discretionary authority to use 
the PM2.5 SMC in order to exempt PSD permit applicants from 
the requirement in Clean Air Act section 165(e)(2) that ambient 
monitoring data for PM2.5 be included in applications 
subject to the PSD program for PM2.5. Accordingly, the 
Districts' APCOs will require all applicants requesting a PSD permit 
from the District to submit ambient PM2.5 monitoring data in 
accordance with Clean Air Act requirements when proposed increases of 
direct PM2.5 emissions or any emissions of a 
PM2.5 precursor equal or exceed a significant amount.
    In summary, Feather River has clarified and confirmed that it 
intends to implement its PSD program with respect to the 
PM2.5 SILs consistent with the Sierra Club Court's decision. 
In addition, Feather River, Great Basin, and Butte have clarified and 
confirmed that they intend to implement their PSD programs with respect 
to the PM2.5 SMC consistent with the Sierra Club Court's 
decision. Upon review of the Districts' PSD rules and the 
clarifications provided by the Districts, we find that the PSD SIP 
submittals including the PM2.5 SILs and SMC language are 
approvable and consistent with the Act and the requirements for a PSD 
program.

D. Greenhouse Gases

    The PSD permitting requirements applied to greenhouse gases (GHGs) 
for the first time on January 2, 2011. 75 FR 17004 (Apr. 2, 2010). On 
June 3, 2010, the EPA issued a final rule, known as the Tailoring Rule, 
which phased in permitting requirements for GHG emissions from 
stationary sources under the CAA PSD and title V permitting programs. 
75 FR 31514. Under its understanding of the CAA at the time, the EPA 
believed the Tailoring Rule was

[[Page 44004]]

necessary to avoid a sudden and unmanageable increase in the number of 
sources that would be required to obtain PSD and Title V permits under 
the CAA because the sources emitted GHG emissions over applicable major 
source and major modification thresholds. In Step 1 of the Tailoring 
Rule, which began on January 2, 2011, the EPA limited application of 
PSD requirements to sources of GHG emissions only if the sources were 
subject to PSD ``anyway'' due to their emissions of pollutants other 
than GHGs. These sources are referred to as ``anyway sources.'' In Step 
2 of the Tailoring Rule, which began on July 1, 2011, the EPA applied 
the PSD requirements under the CAA to sources that were then-classified 
as major, and, thus, required to obtain a permit, based solely on their 
potential GHG emissions and to modifications of otherwise major sources 
that required a PSD permit because they increased only GHG emissions 
above applicable levels in the EPA regulations.
    On June 23, 2014, the Supreme Court issued a decision in Utility 
Air Regulatory Group (UARG) v. Environmental Protection Agency, 134 S. 
Ct. 2427, 189 L. Ed. 2d 372 (2014), holding that the EPA may not treat 
GHGs as an air pollutant for purposes of determining whether a source 
is a major source (or a modification thereof) required to obtain a PSD 
permit. The Supreme Court's decision also said that the EPA could 
continue to require that PSD permits, otherwise required based on 
emissions of pollutants other than GHGs, contain limitations on GHG 
emissions based on the application of BACT. The Supreme Court decision 
effectively upheld PSD permitting requirements for GHG emissions under 
Step 1 of the Tailoring Rule for ``anyway sources'' and invalidated PSD 
permitting requirements for GHG emissions for Step 2 sources. In 
accordance with the Supreme Court decision, on April 10, 2015, the D.C. 
Circuit issued an amended judgment vacating the regulations that 
implemented Step 2 of the Tailoring Rule, including 40 CFR 
52.21(b)(49)(v), but not the regulations that implement Step 1 of the 
Tailoring Rule. Coalition for Responsible Regulation, Inc. v. EPA, No. 
09-1322, (D.C. Cir. April 10, 2015) (Amended Judgment).
    In light of the Supreme Court's UARG decision, and consistent with 
the D.C. Circuit's amended judgment, each of the five Districts with 
PSD rules under consideration in this action requested that CARB notify 
the EPA that CARB and the respective Districts would like to withdraw 
from the respective Districts' PSD rule SIP submittals the portion of 
each District PSD rule that incorporates by reference 40 CFR 
52.21(b)(49)(v). CARB sent a letter to the EPA dated June 1, 2015 
making this withdrawal request for the five District PSD submittals. 
These withdrawals were designed to ensure that the EPA can act on the 
District's SIP submittals consistent with the Supreme Court's UARG 
decision concerning Step 2 of the GHG Tailoring Rule and the D.C. 
Circuit's amended judgment.\3\ With this withdrawal request from CARB, 
the EPA's action on these PSD SIP submittals will not include the 
provisions of 40 CFR 52.21(b)(49)(v) as incorporated by reference into 
the five PSD rules. This approach will ensure that the EPA's action is 
consistent with the Supreme Court's UARG decision and the D.C. Circuit 
Court's April 10, 2015 amended judgment.
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    \3\ See letter to EPA dated June 1, 2015 from Richard Corey, 
Executive Officer, California Air Resources Board.
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    The EPA intends to revise the PSD rules at 40 CFR 52.21 and 40 CFR 
51.166 as a result of the UARG decision and the D.C. Circuit's amended 
judgment. However, in the meantime, the EPA and the states will need to 
ensure that ``anyway'' sources obtain PSD permits meeting the 
requirements of the CAA. The CAA continues to require that PSD permits 
issued to ``anyway sources'' satisfy the BACT requirement for GHGs. 
Based on the language that remains applicable under 52.21(b)(49)(iv), 
the EPA will continue to limit the application of BACT to GHG emissions 
to those circumstances where a source emits GHGs in the amount of 
75,000 tons per year on a CO2e basis. The EPA's intention is 
for this to serve as an interim approach until the EPA can complete 
revisions to its PSD rules consistent with the Supreme Court decision. 
Each of the five Districts has confirmed that it intends to apply 40 
CFR 52.21 as incorporated by reference into its PSD rule in a manner 
consistent with the EPA's interpretation of the Supreme Court's UARG 
decision and the EPA guidance and policy with respect to application of 
section 52.21 while revisions to the PSD regulations are pending.\4\ 
Although the Districts provided this information to the EPA prior to 
the D.C. Circuit's amended judgment vacating the relevant rule 
provisions, this confirmation is consistent with that amended judgment.
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    \4\ See letters dated November 13, 2014 from Butte, November 13, 
2014 from Great Basin, November 25, 2014 from Santa Barbara, 
December 16, 2014 from San Luis Obispo, and December 18, 2014 from 
Feather River.
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E. Transfer of existing permits issued by the EPA

    With the exception of San Luis Obispo, the Districts requested 
approval to exercise their authority to administer the PSD program with 
respect to those sources located in the Districts that have existing 
PSD permits issued by the EPA or by the Districts as part of a 
delegation agreement under 40 CFR 52.21(u).\5\ This would include 
authority to conduct general administration of these existing permits, 
authority to process and issue any and all subsequent PSD permit 
actions relating to such permits (e.g., modifications, amendments, or 
revisions of any nature), and authority to enforce such permits.
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    \5\ There are no such active permits in San Luis Obispo, thus 
San Luis Obispo is not requesting such approval.
---------------------------------------------------------------------------

    Consistent with section 110(a)(2)(E)(i) of the Act, the SIP 
submittals and additional information provided by the Districts make 
clear that each District has the authority under State statute and rule 
to administer the PSD permit program, including but not limited to the 
authority to administer, process and issue any and all permit 
decisions, and enforce PSD permit requirements within each District. 
This applies to PSD permits that the Districts will issue and to 
existing PSD permits issued by the EPA that are to be transferred to 
the Districts upon the effective date of the EPA's approval of the PSD 
SIP submittals.

F. Public comment and proposed action

    Because the EPA believes the submitted rules fulfill all relevant 
CAA requirements, we are proposing to fully approve them as a revision 
to the California SIP pursuant to section 110(k)(3) of the Act. 
Specifically, we are proposing to approve the rules listed in Table 1, 
except for Step 2 of the GHG Tailoring Rule found at 40 CFR 
52.21(b)(49)(v) as incorporated by reference into each rule, which was 
subsequently withdrawn from CARB's request for SIP approval. Our 
determination is based, in part, on the clarifications provided by the 
Districts related to the implementation of the PSD program, including 
the clarifications related to PM2.5 SILs and SMC, in letters 
dated November 13, 2014, November 25, 2014, December 16, 2014, December 
18, 2014, April 8, 2015, and April 15, 2015. We intend to include these 
clarification letters as additional material in the SIP.
    We will accept comments from the public on this proposal until 
August 24, 2015.

[[Page 44005]]

III. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference the rules listed in Table 1 of this preamble, except for the 
portion of each rule that incorporates Step 2 of the GHG Tailoring Rule 
at 40 CFR 52.21(b)(49)(v). The EPA has made, and will continue to make, 
these documents generally available electronically through 
www.regulations.gov and/or in hard copy at the appropriate office of 
the EPA (see the ADDRESSES section of this preamble for more 
information).

IV. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, the EPA's role is to approve state 
choices, provided that they meet the criteria of the Act. Accordingly, 
this action merely approves state law as meeting Federal requirements 
and does not impose additional requirements beyond those imposed by 
state law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide the EPA with the discretionary authority 
to address, as appropriate, disproportionate human health or 
environmental effects, using practicable and legally permissible 
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where the EPA or an Indian tribe 
has demonstrated that a tribe has jurisdiction. In those areas of 
Indian country, the rule does not have tribal implications and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law as specified by Executive Order 13175 (65 FR 67249, November 9, 
2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Greenhouse gases, Incorporation by reference, Intergovernmental 
relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting 
and recordkeeping requirements, Sulfur oxides, Volatile organic 
compounds.

    Dated: July 7, 2015.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2015-18081 Filed 7-23-15; 8:45 am]
 BILLING CODE 6560-50-P



                                                                                 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Proposed Rules                                              44001

                                                      to electronic reporting and would                        ENVIRONMENTAL PROTECTION                              provided, unless the comment includes
                                                      require electronic reporting of                          AGENCY                                                Confidential Business Information (CBI)
                                                      documents submitted for compliance                                                                             or other information the disclosure of
                                                      with Clean Air Act (CAA) requirements.                   40 CFR Part 52                                        which is restricted by statute.
                                                      The revision also includes other                         [EPA–R09–OAR–2015–0257; FRL–9931–04–                  Information that you consider CBI or
                                                      changes which are non-substantive and                    Region 9]                                             otherwise protected should be clearly
                                                      primarily address updates to New                                                                               identified as such and should not be
                                                      Mexico Environment Department                            Approval of Air Plans; California;                    submitted through www.regulations.gov
                                                      (NMED) document viewing locations.                       Multiple Districts; Prevention of                     or email. www.regulations.gov is an
                                                                                                               Significant Deterioration                             ‘‘anonymous access’’ system, and the
                                                      DATES: Written comments should be                                                                              EPA will not know your identity or
                                                      received on or before August 24, 2015.                   AGENCY:  Environmental Protection                     contact information unless you provide
                                                                                                               Agency (EPA).                                         it in the body of your comment. If you
                                                      ADDRESSES:   Comments may be mailed to
                                                                                                               ACTION: Proposed rule.                                send email directly to the EPA, your
                                                      Mr. Guy Donaldson, Chief, Air Planning
                                                                                                                                                                     email address will be automatically
                                                      Section (6PD–L), Environmental                           SUMMARY:   The EPA is proposing                       captured and included as part of the
                                                      Protection Agency, 1445 Ross Avenue,                     approval of five permitting rules                     public comment. If the EPA cannot read
                                                      Suite 1200, Dallas, Texas 75202–2733.                    submitted for inclusion in the California             your comment due to technical
                                                      Comments may also be submitted                           State Implementation Plan (SIP). The                  difficulties and cannot contact you for
                                                      electronically or through hand delivery/                 State of California (State) is required               clarification, the EPA may not be able to
                                                      courier by following the detailed                        under the Clean Air Act (CAA or Act)                  consider your comment.
                                                      instructions in the ADDRESSES section of                 to adopt and implement a SIP-approved
                                                      the direct final rule located in the rules               Prevention of Significant Deterioration                  Docket: The index to the docket for
                                                                                                               (PSD) permit program. This SIP revision               this proposed action is available
                                                      section of this Federal Register.
                                                                                                               proposes to incorporate PSD rules for                 electronically at www.regulations.gov,
                                                      FOR FURTHER INFORMATION CONTACT:                         five local California air districts into the          docket number EPA–R09–OAR–2015–
                                                      Sherry Fuerst, 214–665–6454,                             SIP to establish a PSD permit program                 0257, and in hard copy at EPA Region
                                                      fuerst.sherry@epa.gov.                                   for pre-construction review of certain                IX, 75 Hawthorne Street, San Francisco,
                                                                                                               new and modified major stationary                     California. While all documents in the
                                                      SUPPLEMENTARY INFORMATION:        In the                                                                       docket are listed in the index, some
                                                      final rules section of this Federal                      sources in attainment and unclassifiable
                                                                                                               areas. The local air districts with PSD               information may be publicly available
                                                      Register, EPA is approving the State’s                                                                         only at the hard copy location (e.g.,
                                                      SIP submittal as a direct rule without                   rules that are the subject of this proposal
                                                                                                               are the Feather River Air Quality                     copyrighted material), and some may
                                                      prior proposal because the Agency                                                                              not be publicly available in either
                                                                                                               Management District (Feather River or
                                                      views this as noncontroversial submittal                                                                       location (e.g., CBI). To inspect the hard
                                                                                                               FRAQMD), Great Basin Unified Air
                                                      and anticipates no adverse comments. A                   Pollution Control District (Great Basin               copy materials, please schedule an
                                                      detailed rationale for the approval is set               or GBUAPCD), Butte County Air Quality                 appointment during normal business
                                                      forth in the direct final rule. If no                    Management District (Butte or                         hours with the contact listed in the FOR
                                                      relevant adverse comments are received                   BCAQMD), Santa Barbara County Air                     FURTHER INFORMATION CONTACT section
                                                      in response to this action no further                    Pollution Control District (Santa Barbara             below. Due to building security
                                                      activity is contemplated. If EPA receives                or SBAPCD), and San Luis Obispo                       procedures, appointments must be
                                                      relevant adverse comments, the direct                    County Air Pollution Control District                 scheduled at least 48 hours in advance.
                                                      final rule will be withdrawn and all                     (San Luis Obispo or SLOAPCD)—                         FOR FURTHER INFORMATION CONTACT:  Lisa
                                                      public comments received will be                         collectively, the Districts. We are                   Beckham, Permits Office (AIR–3), U.S.
                                                      addressed in a subsequent final rule                     soliciting public comment on this                     Environmental Protection Agency,
                                                      based on this proposed rule. EPA will                    proposal and plan to follow with a final              Region IX, (415) 972–3811,
                                                      not institute a second comment period.                   action after consideration of comments                beckham.lisa@epa.gov.
                                                      Any parties interested in commenting                     received.
                                                      on this action should do so at this time.                                                                      SUPPLEMENTARY INFORMATION:
                                                                                                               DATES: Any comments must be
                                                                                                               submitted no later than August 24,                    Throughout this document, ‘‘we,’’ ‘‘us’’
                                                         For additional information, see the                                                                         and ‘‘our’’ refer to the EPA.
                                                      direct final rule which is located in the                2015.
                                                      rules section of this Federal Register.                  ADDRESSES:   Submit comments,                         Table of Contents
                                                                                                               identified by docket number EPA–R09–                  I. The State’s Submittal
                                                      List of Subjects in 40 CFR Part 52
                                                                                                               OAR–2015–0257, by one of the                             A. What rules did the State submit?
                                                        Environmental protection, Air                          following methods:                                       B. Are there other versions of these rules?
                                                      pollution control, Incorporation by                        1. Federal eRulemaking Portal:                         C. What is the purpose of the submitted
                                                                                                               www.regulations.gov. Follow the online                      rules?
                                                      reference, Reporting and recordkeeping
                                                                                                               instructions.                                         II. The EPA’s Evaluation and Action
                                                      requirements.                                                                                                     A. How is the EPA evaluating these rules?
                                                                                                                 2. Email: R9airpermits@epa.gov.
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                                                        Dated: July 10, 2015.                                    3. Mail or deliver: Lisa Beckham (Air–                 B. Do the rules meet the evaluation
                                                      Ron Curry,                                                                                                           criteria?
                                                                                                               3), U.S. Environmental Protection
                                                                                                                                                                        C. Significant impact levels and significant
                                                      Regional Administrator, Region 6.                        Agency Region IX, 75 Hawthorne Street,                      monitoring concentrations for PM2.5.
                                                      [FR Doc. 2015–18097 Filed 7–23–15; 8:45 am]              San Francisco, CA 94105–3901.                            D. Greenhouse Gases
                                                      BILLING CODE 6560–50–P
                                                                                                                 Instructions: All comments will be                     E. Transfer of existing permits issued by
                                                                                                               included in the public docket without                       the EPA
                                                                                                               change and may be made available                         F. Public comment and proposed action
                                                                                                               online at www.regulations.gov,                        III. Incorporation by Reference
                                                                                                               including any personal information                    IV. Statutory and Executive Order Reviews



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                                                      44002                           Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Proposed Rules

                                                      I. The State’s Submittal                                        by the local air district and submitted to                 that incorporates a specific federal PSD
                                                                                                                      the EPA by the California Air Resources                    rule provision—40 CFR 52.21(b)(49)(v).
                                                      A. What rules did the State submit?
                                                                                                                      Board (CARB). On June 1, 2015, CARB                        As such, our proposed approval of these
                                                        Table 1 identifies the rules on which                         requested the withdrawal from its                          local air district rules does not include
                                                      we are proposing action along with the                          earlier SIP submittals of these local air                  the rules’ incorporation by reference of
                                                      dates on which each rule was adopted                            district rules the portion of each rule                    40 CFR 52.21(b)(49)(v).

                                                                                                                            TABLE 1—SUBMITTED RULES
                                                                       Local agency                           Rule No.                                 Rule title                                  Adopted      Submitted

                                                      FRAQMD .............................................    10.10       Prevention of Significant Deterioration ..............................     8/1/2011     4/22/2013
                                                      GBUAPCD ...........................................     221         Prevention of Significant Deterioration (PSD) Permit Re-                   9/5/2012      2/6/2013
                                                                                                                            quirements for New Major Facilities or Major Modifica-
                                                                                                                            tions in Attainment or Unclassifiable Areas.
                                                      BCAQMD .............................................    1107        Prevention of Significant Deterioration (PSD) Permits ......              6/28/2012      2/6/2013
                                                      SBAPCD ..............................................   810         Federal Prevention of Significant Deterioration (PSD) ......              6/20/2013     2/10/2014
                                                      SLOAPCD ............................................    220         Federal Prevention of Significant Deterioration .................         1/22/2014     5/13/2014



                                                        The submitted rules were found to                             165 and part 51, § 51.166 of title 40 of                   District adopted its PSD rule. Please see
                                                      meet the completeness criteria in 40                            the Code of Federal Regulations (40 CFR                    the TSD for additional information.
                                                      CFR part 51, appendix V, which must be                          51.166). Section 110(a) requires, among                    Based on our review of these rules, the
                                                      met before formal review by the EPA.                            other things, that SIP rules be                            underlying statutes and regulations, and
                                                                                                                      enforceable, while section 110(l)                          clarifying information that the Districts
                                                      B. Are there other versions of these
                                                                                                                      precludes the EPA’s approval of SIP                        provided in letters dated November 13,
                                                      rules?
                                                                                                                      revisions that would interfere with any                    2014, November 25, 2014, December 16,
                                                        There are no previous versions of the                         applicable requirements concerning                         2014, December 18, 2014, April 8, 2015,
                                                      rules in Table 1 in the California SIP.                         attainment and reasonable further                          and April 15, 2015, we are proposing to
                                                      C. What is the purpose of the submitted                         progress. Section 165 of the CAA                           find the SIP revision for the Districts’
                                                      rules?                                                          requires states to adopt a pre-                            PSD rules acceptable under CAA
                                                                                                                      construction permitting program for                        sections 110(a), 110(l) and 165 and 40
                                                        Section 110(a) of the CAA requires                            certain new and modified major                             CFR 51.166.
                                                      states to adopt and submit regulations                          stationary sources located in attainment                      The EPA’s TSD for this rulemaking
                                                      for the implementation, maintenance                             areas and unclassifiable areas. 40 CFR                     action has more information about these
                                                      and enforcement of the primary and                              51.166 establishes the specific                            rules, including our evaluation and
                                                      secondary NAAQS. Specifically,                                  requirements for SIP-approved PSD                          recommendation to approve them into
                                                      sections 110(a)(2)(C), 110(a)(2)(D)(i)(II),                     permit programs that must be met to                        the SIP.
                                                      and 110(a)(2)(J) of the Act require such                        satisfy the requirements of section 165
                                                      state plans to meet the applicable                              of the CAA.                                                C. Significant Impact Levels and
                                                      requirements of section 165 relating to                                                                                    Significant Monitoring Concentrations
                                                      a pre-construction permit program for                           B. Do the rules meet the evaluation                        for PM2.5
                                                      the prevention of significant                                   criteria?
                                                                                                                                                                                    On January 22, 2013, the U.S. Court
                                                      deterioration of air quality and visibility                        With some exclusions and revisions,                     of Appeals for the District of Columbia
                                                      protection. The rules reviewed for this                         the Districts’ PSD rules incorporate by                    (D.C. Circuit or Court) in Sierra Club v.
                                                      action are intended to implement a pre-                         reference the EPA’s PSD permit program                     EPA, 705 F.3d 458, granted a request
                                                      construction PSD permit program as                              requirements at 40 CFR 52.21, as of                        from the EPA to vacate and remand to
                                                      required by section 165 of the CAA for                          particular dates. We generally consider                    the EPA the portions of two PSD rules
                                                      certain new and modified major                                  the EPA’s PSD permit program                               (40 CFR 51.166(k)(2) and 40 CFR
                                                      stationary sources located in attainment                        requirements at 40 CFR 52.21 to be                         52.21(k)(2)) addressing the significant
                                                      and unclassifiable areas. Because the                           consistent with the criteria for SIP-                      impact levels (SILs) for PM2.5 so that the
                                                      State does not currently have a SIP-                            approved PSD permit programs in 40                         EPA could voluntarily correct an error
                                                      approved PSD program within the                                 CFR 51.166. However, we conducted a                        in these provisions. The D.C. Circuit
                                                      Districts, the EPA is currently the PSD                         review of each District PSD rule to                        also vacated the parts of these two PSD
                                                      permitting authority within these                               ensure that all requirements of 40 CFR                     rules (40 CFR 51.166(i)(5)(i)(c) and 40
                                                      Districts. Approval of the Districts’ PSD                       51.166 were met by each such rule. Our                     CFR 52.21(i)(5)(i)(c)) establishing a
                                                      rules into the SIP will transfer PSD                            detailed evaluation is available as an                     PM2.5 significant monitoring
                                                      permitting authority from the EPA to the                        attachment to the technical support                        concentration (SMC), finding that the
                                                      Districts. The EPA would then assume                            document (TSD) for this proposed                           EPA was precluded from using the
                                                      the role of overseeing the Districts’ PSD                       rulemaking action. We also reviewed                        PM2.5 SMC to exempt permit applicants
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                                                      permitting programs, as intended by the                         the revisions that the Districts made to                   from the statutory requirement to
                                                      CAA.                                                            the provisions of 40 CFR 52.21 that were                   compile and submit preconstruction
                                                      II. The EPA’s Evaluation and Action                             incorporated by reference into each rule,                  monitoring data as part of a complete
                                                                                                                      such as revising certain terms and                         PSD application. On December 9, 2013,
                                                      A. How is the EPA evaluating these                              definitions to reflect that the Districts,                 revisions to 40 CFR 51.166 and 52.21
                                                      rules?                                                          rather than the EPA, will be the PSD                       were published in the Federal Register
                                                        The relevant statutory provisions for                         permitting authority. In addition, we                      to remove the affected provisions from
                                                      our review of the submitted rules                               reviewed revisions made to 40 CFR                          the PSD regulations, effective as of that
                                                      include CAA sections 110(a), 110(l), and                        51.166 and 40 CFR 52.21 after each                         date. 78 FR 73698.


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                                                                                 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Proposed Rules                                         44003

                                                         As Feather River Rule 10.10                           modification.’’ Prevention of Significant             a particular pollutant, if the emissions
                                                      incorporates 40 CFR 52.21 by reference                   Deterioration (PSD) for Particulate                   increase or net emissions increase is
                                                      as in effect prior to the D.C. Circuit’s                 Matter Less than 2.5 Micrometers                      below the applicable SMC. Feather
                                                      decision, the rule incorporates by                       (PM2.5)—Increments, Significant Impact                River, Butte, and Great Basin confirmed
                                                      reference an earlier version of 40 CFR                   levels (SILs) and Significant Monitoring              in their letters dated December 18, 2014,
                                                      52.21 that contains the PM2.5 SILs 1 and                 Concentration (SMC), 75 FR 64,864,                    April 8, 2015, and April 15, 2015 that
                                                      SMC provisions that were later vacated                   64,892 (Oct. 20, 2010). In another                    this provision, specifically at
                                                      by the D.C. Circuit and removed from 40                  passage of the preamble, the EPA also                 § 52.21(i)(5)(i)(c), as incorporated into
                                                      CFR 52.21 by the EPA. Accordingly, the                   observed that ‘‘the use of a SIL may not              each rule, provides the Districts with
                                                      EPA requested clarification from                         be appropriate when a substantial                     the discretion to determine whether it is
                                                      Feather River concerning its                             portion of any NAAQS or increment is                  appropriate to apply the SMC for PM2.5
                                                      interpretation of Rule 10.10 to the extent               known to be consumed.’’ Id. at 64,894.                to exempt a permit applicant from the
                                                      that it incorporates by reference these                  The D.C. Circuit’s decision in Sierra                 requirement to compile and submit
                                                      provisions.                                              Club v. EPA held that, contrary to these              preconstruction ambient monitoring
                                                         Great Basin Rule 221 and Butte Rule                   statements in the preamble, the text of               data for PM2.5 as part of a complete PSD
                                                      1107 also incorporate 40 CFR 52.21 by                    the (k)(2) provision ‘‘does not give                  application. Consistent with the D.C.
                                                      reference as in effect prior to January 22,              permitting authorities sufficient                     Circuit’s decision in Sierra Club v. EPA
                                                      2013. While these two District PSD rules                 discretion to require a cumulative air                vacating the PM2.5 SMC, the Districts
                                                      specifically exclude the PM2.5 SILs                      quality analysis’’ under such                         affirmed in their letters dated December
                                                      provisions that were vacated by the D.C.                 circumstances. 705 F.3d at 464.                       18, 2014, April 8, 2015, and April 15,
                                                      Circuit, they do contain the PM2.5 SMC                      Consistent with the Court’s decision               2015 that they will not exercise their
                                                      provisions that were vacated by the                      in Sierra Club v. EPA and the statements              discretionary authority to use the PM2.5
                                                      Court and removed from 40 CFR 52.21                      by the EPA in the preamble to the 2010                SMC in order to exempt PSD permit
                                                      by the EPA.2 Accordingly, the EPA                        final rule that are discussed above,                  applicants from the requirement in
                                                      requested clarification from Great Basin                 Feather River affirmed in a letter dated              Clean Air Act section 165(e)(2) that
                                                      and Butte concerning their                               December 18, 2014 that it does not                    ambient monitoring data for PM2.5 be
                                                      interpretation of Rules 221 and 1107,                    interpret § 52.21(k)(2), as incorporated              included in applications subject to the
                                                      respectively, to the extent they                         by reference in Rule 10.10, to preclude               PSD program for PM2.5. Accordingly, the
                                                      incorporate by reference these PM2.5                     FRAQMD from exercising discretion to                  Districts’ APCOs will require all
                                                      SMC provisions.                                          determine when it may be appropriate                  applicants requesting a PSD permit from
                                                         With respect to the PM2.5 SILs,                       to conclude that an impact below the                  the District to submit ambient PM2.5
                                                      Feather River Rule 10.10 incorporates                    PM2.5 SIL values in § 52.21(k)(2) will                monitoring data in accordance with
                                                      by reference an earlier version of 40 CFR                cause or contribute to an air quality                 Clean Air Act requirements when
                                                      52.21 that contained the PM2.5 SILs                      problem and to seek remedial action                   proposed increases of direct PM2.5
                                                      provisions that were later vacated by the                from the proposed new source or                       emissions or any emissions of a PM2.5
                                                      D.C. Circuit and removed from 40 CFR                     modification. Such discretion is                      precursor equal or exceed a significant
                                                      52.21 by the EPA. 40 CFR 52.21(k)(1)                     necessary to ensure adherence to the                  amount.
                                                      requires that a source applying for a                    requirement of the Clean Air Act that a                  In summary, Feather River has
                                                      new PSD permit demonstrate that any                      PSD project not cause or contribute to                clarified and confirmed that it intends
                                                                                                               a violation of any NAAQS or any                       to implement its PSD program with
                                                      allowable emission increases from the
                                                                                                               applicable increment. Based on this                   respect to the PM2.5 SILs consistent with
                                                      proposed source or modification, in
                                                                                                               interpretation, the District affirmed in              the Sierra Club Court’s decision. In
                                                      conjunction with all other applicable
                                                                                                               the December 18, 2014 letter that it will             addition, Feather River, Great Basin,
                                                      emissions increases or reductions, will
                                                                                                               not read § 52.21(k)(2), as incorporated               and Butte have clarified and confirmed
                                                      not cause or contribute to a violation of
                                                                                                               by reference in District Rule 10.10, as an            that they intend to implement their PSD
                                                      any NAAQS or any applicable
                                                                                                               absolute ‘‘safe harbor,’’ but will exercise           programs with respect to the PM2.5 SMC
                                                      increment. In the preamble to the 2010
                                                                                                               discretion to determine whether a                     consistent with the Sierra Club Court’s
                                                      final rule adding the 40 CFR 52.21(k)(2)
                                                                                                               particular application of the PM2.5 SIL               decision. Upon review of the Districts’
                                                      provision, the EPA advised that,
                                                                                                               values is appropriate when a substantial              PSD rules and the clarifications
                                                      ‘‘notwithstanding the existence of a SIL,                portion of the PM2.5 NAAQS or                         provided by the Districts, we find that
                                                      permitting authorities should determine                  increment is known to be consumed.                    the PSD SIP submittals including the
                                                      when it may be appropriate to conclude                   The District confirmed that it retains the            PM2.5 SILs and SMC language are
                                                      that even a de minimis impact will                       discretion to require additional                      approvable and consistent with the Act
                                                      ‘cause or contribute’ to an air quality                  information from a permit applicant as                and the requirements for a PSD
                                                      problem and to seek remedial action                      needed to assure that the source will not             program.
                                                      from the proposed new source or                          cause or contribute to a violation of any
                                                                                                                                                                     D. Greenhouse Gases
                                                        1 The
                                                                                                               NAAQS or applicable increment
                                                               PSD rules submitted by Great Basin, Butte,                                                              The PSD permitting requirements
                                                      and San Luis Obispo specifically excluded the            pursuant to § 52.21(k)(1).
                                                      PM2.5 SILs from their incorporation by reference of         As noted above, Feather River Rule                 applied to greenhouse gases (GHGs) for
                                                                                                               10.10, Great Basin Rule 221, and Butte                the first time on January 2, 2011. 75 FR
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                                                      40 CFR 52.21. Santa Barbara’s PSD rule
                                                      incorporated by reference 40 CFR 52.21 as in effect      Rule 1107 also incorporated by                        17004 (Apr. 2, 2010). On June 3, 2010,
                                                      after the PM2.5 SILs were vacated by the Court and                                                             the EPA issued a final rule, known as
                                                      no longer in effect, and thus does not include the
                                                                                                               reference an earlier version of the
                                                      PM2.5 SILs.                                              federal regulation at § 52.21(i)(5)(i) that           the Tailoring Rule, which phased in
                                                         2 San Luis Obispo’s PSD rule specifically revised     contains the PM2.5 SMC, which provides                permitting requirements for GHG
                                                      its rule language concerning the PM2.5 SMC to be         that each District may exempt a                       emissions from stationary sources under
                                                      consistent with the Court’s decision. Santa              proposed major stationary source or                   the CAA PSD and title V permitting
                                                      Barbara’s PSD rule incorporated by reference 40
                                                      CFR 52.21 as in effect after the PM2.5 SMC was
                                                                                                               major modification from the                           programs. 75 FR 31514. Under its
                                                      vacated by the Court and no longer in effect, and        requirements of paragraph (m) of this                 understanding of the CAA at the time,
                                                      thus does not include the PM2.5 SMC.                     section, with respect to monitoring for               the EPA believed the Tailoring Rule was


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                                                      44004                      Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Proposed Rules

                                                      necessary to avoid a sudden and                          portion of each District PSD rule that                E. Transfer of existing permits issued by
                                                      unmanageable increase in the number of                   incorporates by reference 40 CFR                      the EPA
                                                      sources that would be required to obtain                 52.21(b)(49)(v). CARB sent a letter to the               With the exception of San Luis
                                                      PSD and Title V permits under the CAA                    EPA dated June 1, 2015 making this                    Obispo, the Districts requested approval
                                                      because the sources emitted GHG                          withdrawal request for the five District              to exercise their authority to administer
                                                      emissions over applicable major source                   PSD submittals. These withdrawals                     the PSD program with respect to those
                                                      and major modification thresholds. In                    were designed to ensure that the EPA                  sources located in the Districts that have
                                                      Step 1 of the Tailoring Rule, which                      can act on the District’s SIP submittals              existing PSD permits issued by the EPA
                                                      began on January 2, 2011, the EPA                        consistent with the Supreme Court’s                   or by the Districts as part of a delegation
                                                      limited application of PSD requirements                  UARG decision concerning Step 2 of the                agreement under 40 CFR 52.21(u).5 This
                                                      to sources of GHG emissions only if the                  GHG Tailoring Rule and the D.C.
                                                      sources were subject to PSD ‘‘anyway’’                                                                         would include authority to conduct
                                                                                                               Circuit’s amended judgment.3 With this                general administration of these existing
                                                      due to their emissions of pollutants                     withdrawal request from CARB, the
                                                      other than GHGs. These sources are                                                                             permits, authority to process and issue
                                                                                                               EPA’s action on these PSD SIP                         any and all subsequent PSD permit
                                                      referred to as ‘‘anyway sources.’’ In Step               submittals will not include the
                                                      2 of the Tailoring Rule, which began on                                                                        actions relating to such permits (e.g.,
                                                                                                               provisions of 40 CFR 52.21(b)(49)(v) as               modifications, amendments, or
                                                      July 1, 2011, the EPA applied the PSD
                                                                                                               incorporated by reference into the five               revisions of any nature), and authority
                                                      requirements under the CAA to sources
                                                                                                               PSD rules. This approach will ensure                  to enforce such permits.
                                                      that were then-classified as major, and,
                                                                                                               that the EPA’s action is consistent with                 Consistent with section 110(a)(2)(E)(i)
                                                      thus, required to obtain a permit, based
                                                      solely on their potential GHG emissions                  the Supreme Court’s UARG decision                     of the Act, the SIP submittals and
                                                      and to modifications of otherwise major                  and the D.C. Circuit Court’s April 10,                additional information provided by the
                                                      sources that required a PSD permit                       2015 amended judgment.                                Districts make clear that each District
                                                      because they increased only GHG                             The EPA intends to revise the PSD                  has the authority under State statute and
                                                      emissions above applicable levels in the                 rules at 40 CFR 52.21 and 40 CFR                      rule to administer the PSD permit
                                                      EPA regulations.                                         51.166 as a result of the UARG decision               program, including but not limited to
                                                         On June 23, 2014, the Supreme Court                   and the D.C. Circuit’s amended                        the authority to administer, process and
                                                      issued a decision in Utility Air                         judgment. However, in the meantime,                   issue any and all permit decisions, and
                                                      Regulatory Group (UARG) v.                               the EPA and the states will need to                   enforce PSD permit requirements within
                                                      Environmental Protection Agency, 134                     ensure that ‘‘anyway’’ sources obtain                 each District. This applies to PSD
                                                      S. Ct. 2427, 189 L. Ed. 2d 372 (2014),                   PSD permits meeting the requirements                  permits that the Districts will issue and
                                                      holding that the EPA may not treat                       of the CAA. The CAA continues to                      to existing PSD permits issued by the
                                                      GHGs as an air pollutant for purposes of                 require that PSD permits issued to                    EPA that are to be transferred to the
                                                      determining whether a source is a major                  ‘‘anyway sources’’ satisfy the BACT                   Districts upon the effective date of the
                                                      source (or a modification thereof)                                                                             EPA’s approval of the PSD SIP
                                                                                                               requirement for GHGs. Based on the
                                                      required to obtain a PSD permit. The                                                                           submittals.
                                                                                                               language that remains applicable under
                                                      Supreme Court’s decision also said that                  52.21(b)(49)(iv), the EPA will continue               F. Public comment and proposed action
                                                      the EPA could continue to require that
                                                                                                               to limit the application of BACT to GHG                 Because the EPA believes the
                                                      PSD permits, otherwise required based
                                                                                                               emissions to those circumstances where                submitted rules fulfill all relevant CAA
                                                      on emissions of pollutants other than
                                                                                                               a source emits GHGs in the amount of                  requirements, we are proposing to fully
                                                      GHGs, contain limitations on GHG
                                                      emissions based on the application of                    75,000 tons per year on a CO2e basis.                 approve them as a revision to the
                                                      BACT. The Supreme Court decision                         The EPA’s intention is for this to serve              California SIP pursuant to section
                                                      effectively upheld PSD permitting                        as an interim approach until the EPA                  110(k)(3) of the Act. Specifically, we are
                                                      requirements for GHG emissions under                     can complete revisions to its PSD rules               proposing to approve the rules listed in
                                                      Step 1 of the Tailoring Rule for ‘‘anyway                consistent with the Supreme Court                     Table 1, except for Step 2 of the GHG
                                                      sources’’ and invalidated PSD                            decision. Each of the five Districts has              Tailoring Rule found at 40 CFR
                                                      permitting requirements for GHG                          confirmed that it intends to apply 40                 52.21(b)(49)(v) as incorporated by
                                                      emissions for Step 2 sources. In                         CFR 52.21 as incorporated by reference                reference into each rule, which was
                                                      accordance with the Supreme Court                        into its PSD rule in a manner consistent              subsequently withdrawn from CARB’s
                                                      decision, on April 10, 2015, the D.C.                    with the EPA’s interpretation of the                  request for SIP approval. Our
                                                      Circuit issued an amended judgment                       Supreme Court’s UARG decision and                     determination is based, in part, on the
                                                      vacating the regulations that                            the EPA guidance and policy with                      clarifications provided by the Districts
                                                      implemented Step 2 of the Tailoring                      respect to application of section 52.21               related to the implementation of the
                                                      Rule, including 40 CFR 52.21(b)(49)(v),                  while revisions to the PSD regulations                PSD program, including the
                                                      but not the regulations that implement                   are pending.4 Although the Districts                  clarifications related to PM2.5 SILs and
                                                      Step 1 of the Tailoring Rule. Coalition                  provided this information to the EPA                  SMC, in letters dated November 13,
                                                      for Responsible Regulation, Inc. v. EPA,                 prior to the D.C. Circuit’s amended                   2014, November 25, 2014, December 16,
                                                      No. 09–1322, (D.C. Cir. April 10, 2015)                  judgment vacating the relevant rule                   2014, December 18, 2014, April 8, 2015,
                                                      (Amended Judgment).                                      provisions, this confirmation is
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                                                                                                                                                                     and April 15, 2015. We intend to
                                                         In light of the Supreme Court’s UARG                  consistent with that amended judgment.                include these clarification letters as
                                                      decision, and consistent with the D.C.                                                                         additional material in the SIP.
                                                      Circuit’s amended judgment, each of the                    3 See letter to EPA dated June 1, 2015 from           We will accept comments from the
                                                      five Districts with PSD rules under                      Richard Corey, Executive Officer, California Air      public on this proposal until August 24,
                                                      consideration in this action requested                   Resources Board.
                                                                                                                                                                     2015.
                                                                                                                 4 See letters dated November 13, 2014 from Butte,
                                                      that CARB notify the EPA that CARB
                                                                                                               November 13, 2014 from Great Basin, November 25,
                                                      and the respective Districts would like                  2014 from Santa Barbara, December 16, 2014 from         5 There are no such active permits in San Luis
                                                      to withdraw from the respective                          San Luis Obispo, and December 18, 2014 from           Obispo, thus San Luis Obispo is not requesting such
                                                      Districts’ PSD rule SIP submittals the                   Feather River.                                        approval.



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                                                                                 Federal Register / Vol. 80, No. 142 / Friday, July 24, 2015 / Proposed Rules                                          44005

                                                      III. Incorporation by Reference                          Technology Transfer and Advancement                   requires that each state adopt and
                                                         In this rule, the EPA is proposing to                 Act of 1995 (15 U.S.C. 272 note) because              submit a SIP for the implementation,
                                                      include in a final rule regulatory text                  application of those requirements would               maintenance, and enforcement of each
                                                      that includes incorporation by                           be inconsistent with the CAA; and                     NAAQS promulgated by EPA, which is
                                                      reference. In accordance with                               • Does not provide the EPA with the                commonly referred to as an
                                                      requirements of 1 CFR 51.5, the EPA is                   discretionary authority to address, as                ‘‘infrastructure’’ SIP. EPD certified that
                                                      proposing to incorporate by reference                    appropriate, disproportionate human                   the Georgia SIP contains provisions that
                                                      the rules listed in Table 1 of this                      health or environmental effects, using                ensure the 2008 Lead NAAQS is
                                                      preamble, except for the portion of each                 practicable and legally permissible                   implemented, enforced, and maintained
                                                      rule that incorporates Step 2 of the GHG                 methods, under Executive Order 12898                  in Georgia. With the exception of
                                                      Tailoring Rule at 40 CFR 52.21(b)(49)(v).                (59 FR 7629, February 16, 1994).                      provisions pertaining to prevention of
                                                      The EPA has made, and will continue                         In addition, the SIP is not approved               significant deterioration (PSD)
                                                      to make, these documents generally                       to apply on any Indian reservation land               permitting, EPA is proposing to
                                                      available electronically through                         or in any other area where the EPA or                 determine that Georgia’s infrastructure
                                                      www.regulations.gov and/or in hard                       an Indian tribe has demonstrated that a               SIP submission, provided to EPA on
                                                      copy at the appropriate office of the EPA                tribe has jurisdiction. In those areas of             March 6, 2012, addresses the required
                                                      (see the ADDRESSES section of this                       Indian country, the rule does not have                infrastructure elements for the 2008
                                                      preamble for more information).                          tribal implications and will not impose               Lead NAAQS.
                                                                                                               substantial direct costs on tribal                    DATES: Written comments must be
                                                      IV. Statutory and Executive Order                        governments or preempt tribal law as                  received on or before August 24, 2015.
                                                      Reviews                                                  specified by Executive Order 13175 (65
                                                                                                                                                                     ADDRESSES: Submit your comments,
                                                         Under the Clean Air Act, the                          FR 67249, November 9, 2000).
                                                                                                                                                                     identified by Docket ID No. EPA–R04–
                                                      Administrator is required to approve a                   List of Subjects in 40 CFR Part 52                    OAR–2014–0442, by one of the
                                                      SIP submission that complies with the                                                                          following methods:
                                                      provisions of the Act and applicable                       Environmental protection, Air
                                                                                                               pollution control, Carbon monoxide,                      1. www.regulations.gov: Follow the
                                                      Federal regulations. 42 U.S.C. 7410(k);                                                                        on-line instructions for submitting
                                                      40 CFR 52.02(a). Thus, in reviewing SIP                  Greenhouse gases, Incorporation by
                                                                                                               reference, Intergovernmental relations,               comments.
                                                      submissions, the EPA’s role is to                                                                                 2. Email: R4-ARMS@epa.gov.
                                                      approve state choices, provided that                     Lead, Nitrogen dioxide, Ozone,
                                                                                                               Particulate matter, Reporting and                        3. Fax: (404) 562–9019.
                                                      they meet the criteria of the Act.                                                                                4. Mail: ‘‘EPA–R04–OAR–2014–
                                                      Accordingly, this action merely                          recordkeeping requirements, Sulfur
                                                                                                               oxides, Volatile organic compounds.                   0442,’’ Air Regulatory Management
                                                      approves state law as meeting Federal                                                                          Section (formerly the Regulatory
                                                      requirements and does not impose                           Dated: July 7, 2015.                                Development Section), Air Planning and
                                                      additional requirements beyond those                     Jared Blumenfeld,                                     Implementation Branch (formerly the
                                                      imposed by state law. For that reason,                   Regional Administrator, Region IX.                    Air Planning Branch), Air, Pesticides
                                                      this action:                                             [FR Doc. 2015–18081 Filed 7–23–15; 8:45 am]           and Toxics Management Division, U.S.
                                                         • Is not a significant regulatory action
                                                                                                               BILLING CODE 6560–50–P                                Environmental Protection Agency,
                                                      subject to review by the Office of
                                                                                                                                                                     Region 4, 61 Forsyth Street SW.,
                                                      Management and Budget under
                                                                                                                                                                     Atlanta, Georgia 30303–8960.
                                                      Executive Orders 12866 (58 FR 51735,                     ENVIRONMENTAL PROTECTION                                 5. Hand Delivery or Courier: Lynorae
                                                      October 4, 1993) and 13563 (76 FR 3821,                  AGENCY                                                Benjamin, Chief, Air Regulatory
                                                      January 21, 2011);
                                                                                                                                                                     Management Section, Air Planning and
                                                         • Does not impose an information                      40 CFR Part 52                                        Implementation Branch, Air, Pesticides
                                                      collection burden under the provisions
                                                                                                               [EPA–R04–OAR–2014–0442; FRL–9931–14-                  and Toxics Management Division, U.S.
                                                      of the Paperwork Reduction Act (44
                                                                                                               Region 4]                                             Environmental Protection Agency,
                                                      U.S.C. 3501 et seq.);
                                                         • Is certified as not having a                                                                              Region 4, 61 Forsyth Street SW.,
                                                                                                               Approval and Promulgation of                          Atlanta, Georgia 30303–8960. Such
                                                      significant economic impact on a                         Implementation Plans; Georgia;
                                                      substantial number of small entities                                                                           deliveries are only accepted during the
                                                                                                               Infrastructure Requirements for the                   Regional Office’s normal hours of
                                                      under the Regulatory Flexibility Act (5                  2008 Lead National Ambient Air Quality
                                                      U.S.C. 601 et seq.);                                                                                           operation. The Regional Office’s official
                                                                                                               Standards                                             hours of business are Monday through
                                                         • Does not contain any unfunded
                                                      mandate or significantly or uniquely                     AGENCY:  Environmental Protection                     Friday, 8:30 to 4:30, excluding Federal
                                                      affect small governments, as described                   Agency (EPA).                                         holidays.
                                                      in the Unfunded Mandates Reform Act                      ACTION: Proposed rule.                                   Instructions: Direct your comments to
                                                      of 1995 (Pub. L. 104–4);                                                                                       Docket ID No. EPA–R04–OAR–2014–
                                                         • Does not have Federalism                            SUMMARY:    The Environmental Protection              0442. EPA’s policy is that all comments
                                                      implications as specified in Executive                   Agency (EPA) is proposing to approve                  received will be included in the public
                                                      Order 13132 (64 FR 43255, August 10,                     the March 6, 2012, State                              docket without change and may be
                                                                                                               Implementation Plan (SIP) revision,                   made available online at
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                                                      1999);
                                                         • Is not an economically significant                  submitted by the State of Georgia,                    www.regulations.gov, including any
                                                      regulatory action based on health or                     through the Georgia Department of                     personal information provided, unless
                                                      safety risks subject to Executive Order                  Natural Resources’ Environmental                      the comment includes information
                                                      13045 (62 FR 19885, April 23, 1997);                     Protection Division (EPD),                            claimed to be Confidential Business
                                                         • Is not a significant regulatory action              demonstrating that the State meets the                Information (CBI) or other information
                                                      subject to Executive Order 13211 (66 FR                  requirements of sections 110(a)(1) and                whose disclosure is restricted by statute.
                                                      28355, May 22, 2001);                                    (2) of the Clean Air Act (CAA or the Act)             Do not submit through
                                                         • Is not subject to requirements of                   for the 2008 lead national ambient air                www.regulations.gov or email,
                                                      Section 12(d) of the National                            quality standards (NAAQS). The CAA                    information that you consider to be CBI


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Document Created: 2018-02-23 09:24:43
Document Modified: 2018-02-23 09:24:43
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesAny comments must be submitted no later than August 24, 2015.
ContactLisa Beckham, Permits Office (AIR-3), U.S. Environmental Protection Agency, Region IX, (415) 972-3811, [email protected]
FR Citation80 FR 44001 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Carbon Monoxide; Greenhouse Gases; Incorporation by Reference; Intergovernmental Relations; Lead; Nitrogen Dioxide; Ozone; Particulate Matter; Reporting and Recordkeeping Requirements; Sulfur Oxides and Volatile Organic Compounds

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