80_FR_50359 80 FR 50199 - Prevention of Significant Deterioration and Title V Permitting for Greenhouse Gases: Removal of Certain Vacated Elements

80 FR 50199 - Prevention of Significant Deterioration and Title V Permitting for Greenhouse Gases: Removal of Certain Vacated Elements

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 80, Issue 160 (August 19, 2015)

Page Range50199-50203
FR Document2015-20501

The Environmental Protection Agency (EPA) is amending its Prevention of Significant Deterioration (PSD) and title V regulations to remove from the Code of Federal Regulations portions of those regulations that were initially promulgated in 2010 and that the Court of Appeals for the District of Columbia Circuit (D.C. Circuit) specifically identified as vacated in the April 10, 2015, amended judgment, Coalition for Responsible Regulation v. EPA. This action is exempt from notice-and-comment rulemaking because it is ministerial in nature.

Federal Register, Volume 80 Issue 160 (Wednesday, August 19, 2015)
[Federal Register Volume 80, Number 160 (Wednesday, August 19, 2015)]
[Rules and Regulations]
[Pages 50199-50203]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-20501]



[[Page 50199]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 51, 52, 70, and 71

[EPA-HQ-OAR-2015-0414; FRL-9932-11-OAR]


Prevention of Significant Deterioration and Title V Permitting 
for Greenhouse Gases: Removal of Certain Vacated Elements

AGENCY: Environmental Protection Agency.

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is amending its 
Prevention of Significant Deterioration (PSD) and title V regulations 
to remove from the Code of Federal Regulations portions of those 
regulations that were initially promulgated in 2010 and that the Court 
of Appeals for the District of Columbia Circuit (D.C. Circuit) 
specifically identified as vacated in the April 10, 2015, amended 
judgment, Coalition for Responsible Regulation v. EPA. This action is 
exempt from notice-and-comment rulemaking because it is ministerial in 
nature.

DATES: This rule is effective on August 19, 2015.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2015-0414. All documents in the docket are 
listed on the www.regulations.gov Web site. Publicly available docket 
materials are available either electronically through 
www.regulations.gov or in hard copy at the EPA Docket Center, Room 
3334, EPA William Jefferson Clinton West Building, Room 3334, 1301 
Constitution Avenue NW., Washington, DC 20004. The Public Reading Room 
is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding 
legal holidays. The telephone number for the Public Reading Room is 
(202) 566-1744 and the telephone number for the Office of Air and 
Radiation Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Questions concerning this final rule 
should be addressed to Mrs. Jessica Monta[ntilde]ez, U.S. Environmental 
Protection Agency, Office of Air Quality Planning and Standards, Air 
Quality Planning Division, (C504-03), Research Triangle Park, NC 27711, 
telephone number (919) 541-3407, email at [email protected].

SUPPLEMENTARY INFORMATION: The information in this section of the 
preamble is organized as follows:

I. Does this action apply to me?
II. Background and Rationale for This Action
III. Final Action
IV. Implementation
V. Environmental Justice Considerations
VI. Statutory and Executive Order Reviews
VII. Judicial Review

I. Does this action apply to me?

    Entities potentially affected by this final action include new and 
modified stationary sources in all industry groups. To determine 
whether your facility would be affected by this action, you should 
carefully examine the applicability criteria in Sec. Sec.  51.166 and 
52.21 of title 40 of the Code of Federal Regulations (CFR). Entities 
potentially affected by this final action also include state, local and 
tribal governments that are authorized to implement the PSD program 
through an EPA-approved State Implementation Plan (SIP) or Tribal 
Implementation Plan (TIP) or that have been authorized to implement the 
PSD program through a delegation of the federal PSD regulations.

II. Background and Rationale for This Action

    Part C of title I of the Clean Air Act (CAA or the Act) contains 
the requirements for a component of the major New Source Review (NSR) 
program known as the PSD program. This program sets forth procedures 
for the preconstruction review and permitting of new and modified 
stationary sources of air pollution locating in areas meeting the 
National Ambient Air Quality Standards (NAAQS) (``attainment'' areas) 
and areas for which there is insufficient information to classify an 
area as either attainment or nonattainment (``unclassifiable'' areas). 
The applicability of PSD to a particular source must be determined in 
advance of construction of a new source or major modification of an 
existing source and is pollutant-specific. Once a source is determined 
to be subject to PSD, among other requirements, the source must 
demonstrate that it will not cause or contribute to a violation of any 
NAAQS or PSD increment,\1\ and that it will use the Best Available 
Control Technology (BACT).\2\ The EPA regulations for the PSD program 
are contained in 40 CFR 51.166 (applicable to air agencies that issue 
permits under EPA-approved SIPs) and 40 CFR 52.21 (the federal PSD 
program applicable to permits issued by the EPA or air agencies that 
have received delegation to implement the federal PSD program).
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    \1\ CAA section 165(a)(3).
    \2\ CAA section 165(a)(4).
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    Title V of the CAA, on the other hand, requires all major 
stationary sources of air pollution and certain other sources to apply 
for a title V operating permit that includes emission limitations and 
other conditions as necessary to assure compliance with applicable 
requirements of the CAA.\3\ The title V operating permit program is a 
vehicle for ensuring that air quality control requirements are 
appropriately applied to facility emission units and for assuring 
compliance with such requirements. The title V program does not 
generally impose new substantive air quality control requirements, but 
does require permits to contain adequate monitoring, recordkeeping, 
reporting and other requirements to assure sources' compliance. The 
title V program is implemented through regulations contained in 40 CFR 
part 70 (for programs implemented by state or local agencies and 
tribes) and 40 CFR part 71 (for programs generally implemented by the 
EPA).
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    \3\ CAA sections 502(a) and 504(a).
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    On June 3, 2010, the EPA published a final rule, known as the 
Tailoring Rule, which phased in permitting requirements for greenhouse 
gas (GHG) emissions from stationary sources under the CAA PSD and title 
V permitting programs (75 FR 31514). Under its interpretation of the 
CAA at the time, the EPA believed the Tailoring Rule was 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 or had the potential to emit GHGs above the 
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 and title V requirements to sources only if they 
were subject to PSD or title V ``anyway'' due to their emissions of 
non-GHG pollutants. 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 and title V permitting requirements under 
the CAA to sources that were classified as major, and, thus, required 
to obtain a permit, based solely on their GHG emissions or potential to 
emit GHGs, and to modifications of otherwise major sources that 
required a PSD permit because they increased only GHG emissions above 
the level in the EPA regulations.
    On June 23, 2014, the U.S. Supreme Court issued a decision in 
Utility Air Regulatory Group (UARG) v. EPA, 134 S. Ct. 2427, addressing 
the application of stationary source permitting requirements to GHGs. 
The U.S. Supreme Court held that the EPA may not treat GHGs as an air 
pollutant for the

[[Page 50200]]

specific purpose of determining whether a source is a major source (or 
a modification thereof) and thus required to obtain a PSD or title V 
permit. However, the U.S. Supreme Court also said that the EPA could 
continue to require that PSD permits, otherwise required based on 
emissions of pollutants other than GHGs pollutants, contain limitations 
on GHG emissions based on the application of GHG BACT. That is, with 
respect to PSD, the ruling effectively upheld PSD permitting 
requirements for GHG emissions under Step 1 of the Tailoring Rule for 
``anyway sources,'' and invalidated PSD permitting requirements for 
Step 2 sources.
    Because the Supreme Court decision affirmed in part and reversed in 
part an earlier decision of the D.C. Circuit in Coalition for 
Responsible Regulation v. EPA, 684 F.3d 102 (D.C. Cir. 2012), on April 
10, 2015, the D.C. Circuit issued an Amended Judgment (Nos. 09-1322, 
10-073, 10-1092 and 10-1167), which reflects the UARG v. EPA Supreme 
Court decision. The D.C. Circuit simultaneously issued its mandate, 
which means that the Coalition Amended Judgment became final and 
effective upon issuance.
    In the Coalition Amended Judgment, the D.C. Circuit ordered that 
the EPA regulations under review (including 40 CFR 51.166(b)(48)(v) and 
40 CFR 52.21(b)(49)(v)) be vacated to the extent they require a 
stationary source to obtain a PSD permit if GHGs are the only pollutant 
(i) that the source emits or has the potential to emit above the 
applicable major source thresholds, or (ii) for which there is a 
significant emissions increase from a modification. The D.C. Circuit 
also ordered that the regulations under review be vacated to the extent 
they require (i) a stationary source to obtain a title V permit solely 
because the source emits or has the potential to emit GHGs above the 
applicable major source thresholds and (ii) the EPA to consider further 
phasing-in the GHG permitting requirements at lower GHG emission 
thresholds (in particular 40 CFR 52.22 and 40 CFR 70.12, 71.13).
    Consistent with the Coalition Amended Judgment, this action removes 
from the PSD regulations certain regulatory provisions that require a 
stationary source to obtain a PSD permit solely on the basis of the 
source's GHG emissions and the regulations that require the EPA to 
consider further phasing-in GHG permitting requirements into the PSD 
and title V permitting programs at lower GHG emissions thresholds. The 
EPA intends to further revise the PSD and title V regulations to fully 
implement the Coalition Amended Judgment in a separate rulemaking. This 
future rulemaking will include revisions to additional definitions in 
the PSD regulations. It will also include further revising the title V 
regulations to remove portions of the title V regulations that were 
vacated in the Coalition Amended Judgment case--those that require a 
stationary source to obtain a title V permit solely because the source 
emits or has the potential to emit GHGs above the applicable major 
source thresholds. Those additional revisions to the PSD and title V 
regulations, although necessary to implement the Coalition Amended 
Judgment, are not purely ministerial in nature and will be addressed in 
this separate notice-and-comment rulemaking, which would give the 
public an opportunity to comment on how the EPA proposes to address 
those portions of the Coalition Amended Judgment.

III. Final Action

    This final action removes from the CFR several provisions of the 
PSD and title V permitting regulations that were originally promulgated 
as part of the Tailoring Rule and that the D.C. Circuit specifically 
identified as vacated in the Coalition Amended Judgment. Because the 
D.C. Circuit specifically identified the Tailoring Rule Step 2 PSD 
permitting requirements in 40 CFR 51.166(b)(48)(v) and 40 CFR 
52.21(b)(49)(v) and the regulations that require the EPA to consider 
further phasing-in the GHG permitting requirements at lower GHG 
emission thresholds in 40 CFR 52.22, 70.12, and 71.13 as vacated, the 
EPA is taking the ministerial action of removing these provisions from 
the CFR.
    Furthermore, and since the D.C. Circuit's Coalition Amended 
Judgment further ordered ``the EPA to take steps to rescind and/or 
revise the applicable provisions of the CFR as expeditiously as 
practicable'' to reflect its vacatur of certain provisions from the 
Tailoring Rule, this rulemaking addresses only those provisions 
specifically identified in the Coalition Amended Judgment that can be 
removed from the CFR without the need for any further changes. In a 
subsequent notice-and-comment rulemaking, the EPA will need to make 
additional changes to its PSD and title V permitting regulations in 
order to fully implement the Coalition Amended Judgment.
    The EPA is taking this action as a final rule without providing an 
opportunity for public comment or a public hearing because the EPA 
finds that the Administrative Procedure Act (APA) good cause exemption 
applies here. In general, the APA requires that general notice of 
proposed rulemaking shall be published in the Federal Register. Such 
notice must provide an opportunity for public participation in the 
rulemaking process. However, the APA also provides a way for an agency 
to directly issue a final rulemaking in certain specific instances. 
This may occur, in particular, when an agency for good cause finds (and 
incorporates the finding and a brief statement of reasons in the rule 
issued) that notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest. See 5 U.S.C. 
553(b)(3)(B). The EPA has determined that it is not necessary to 
provide a public hearing or an opportunity for public comment on this 
action because the removal of the affected PSD and title V Tailoring 
Rule provisions from the CFR is a necessary ministerial act. The D.C. 
Circuit specifically identified as vacated the PSD and title V 
regulations this rule removes, and ordered that the EPA take steps to 
rescind and/or revise the applicable provisions of the CFR as 
expeditiously as practicable. The EPA no longer has the authority to 
require any source to obtain a PSD or title V permit based solely on 
the source having GHG emissions above applicable thresholds. Thus, EPA 
may not implement the vacated provisions at 40 CFR 51.166(b)(48)(v) and 
52.21(b)(49)(v) that applied PSD to this population of sources. 
Further, the EPA is no longer required to take the actions specified in 
the vacated regulations at 40 CFR 52.22, 70.12, and 71.13 to consider 
further phasing in GHG PSD and title V permitting requirements at lower 
GHG emissions thresholds. Therefore, removing the affected regulatory 
text simply implements the decision of the Supreme Court and D.C. 
Circuit and it would serve no useful purpose to provide an opportunity 
for public comment or a public hearing on this issue.
    In addition, notice-and-comment would be contrary to the public 
interest because it would unnecessarily delay the removal from the CFR 
of the Tailoring Rule Step 2 PSD permitting provisions that the Supreme 
Court held were invalid and the regulations that require the EPA to 
consider further phasing-in the GHG permitting requirements for lower 
GHG emissions thresholds in 40 CFR 52.22, 70.12, and 71.13 that the 
D.C. Circuit's Coalition Amended Judgment specifically identified as 
vacated. Such delay could result in confusion on the part of the

[[Page 50201]]

regulated industry and state, local and tribal air agencies about how 
the D.C. Circuit's decision affects the PSD and title V regulations as 
well as PSD permitting. Promulgation of this rule soon after the D.C. 
Circuit decision serves to clarify that sources are no longer required 
to obtain PSD permits under the preconstruction permitting regulations 
associated with Step 2 of the Tailoring Rule and that the EPA will not 
be required under 40 CFR 52.22, 70.12, and 71.13 to take further steps 
to consider further phasing in PSD and title V permitting requirements 
at lower GHG emissions thresholds. Given the substantial costs to the 
owner/operator of projects associated with delays and uncertainty, it 
is in the public interest for the EPA to amend the CFR without delay. 
Furthermore, and as stated previously, the D.C. Circuit's Coalition 
Amended Judgment ordered the EPA to take steps to undertake these 
revisions as expeditiously as practicable.
    For these reasons, the EPA finds good cause to issue a final 
rulemaking pursuant to section 553 of the APA, 5 U.S.C. 553(b)(3)(B). 
The requirements of CAA section 307(d), including the requirement for 
public comment and hearing on proposed rulemakings, do not apply to 
this action because 5 U.S.C. 553(b)(3)(B) applies. In addition, this 
rule relieves a restriction on construction of some stationary sources 
and therefore is not subject to the requirement for a 30-day delay in 
effective date. 5 U.S.C. 553(d)(1). Moreover, the agency finds that the 
problems outlined above regarding the effects of delaying issuance of 
the rule also provide good cause for not delaying its effective date. 5 
U.S.C. 553(d)(3). Accordingly, the requirement for a delay in effective 
date does not apply and the rule will take effect upon publication in 
the Federal Register. 5 U.S.C. 553(d).

IV. Implementation

    The D.C. Circuit's vacatur of the Tailoring Rule Step 2 PSD 
permitting requirements in 40 CFR 51.166(b)(48)(v) and 40 CFR 
52.21(b)(49)(v) and the provisions that required further action to 
consider phasing-in GHG permitting requirements into the PSD and title 
V programs at lower GHG emission thresholds at 40 CFR 52.22, 70.12, and 
71.13 means that these provisions can no longer be relied upon by the 
EPA, permit applicants or permitting authorities as a basis for issuing 
PSD permits. Further, this means that the EPA will not be required to 
take the actions specified in the regulations at 40 CFR 52.22, 70.12, 
and 71.13 to consider further phasing in GHG PSD and title V permitting 
requirements at lower GHG emissions thresholds.
    Permit reviewing authorities with EPA-approved SIPs containing any 
or all of the affected provisions previously allowed by 40 CFR 
51.166(b)(48)(v) may request to remove their corresponding Tailoring 
Rule Step 2 provisions as soon as feasible, which may be in conjunction 
with the next otherwise planned SIP revision. Permit reviewing 
authorities also have the option to retain the Tailoring Rule Step 2 
permitting requirements solely as a requirement of state law, but these 
requirements will not be approved as part of their federally-
enforceable SIP. As we explained in a memorandum issued by the agency 
on July 24, 2014, titled, ``Next Steps and Preliminary Views on the 
Application of Clean Air Act Permitting Programs to Greenhouse Gases 
Following the Supreme Court's Decision in UARG v. EPA'' (Preliminary 
Views Memo),\4\ we again note that the ``[EPA does] not read the [U.S.] 
Supreme Court decision to preclude states from retaining permitting 
requirements for sources of GHG emissions that apply independently 
under state law even where those requirements are no longer required 
under federal law.''
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    \4\ http://epa.gov/nsr/documents/20140724memo.pdf.
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    With regard to PSD Step 2 permits already issued, the Preliminary 
Views Memo explained that the EPA ``will no longer require PSD . . . 
permits for Step 2 sources'' (Preliminary Views Memo at 2) and that the 
EPA expected ``to provide additional views in the future with respect 
to Step 2 sources that had already obtained a PSD permit . . .'' 
(Preliminary Views Memo at 4). The EPA provided additional views 
regarding EPA-issued Step 2 PSD permits \5\ when it issued two 
memoranda on December 19, 2014. In the first memorandum issued by the 
Office of Air and Radiation (OAR) and titled, ``Next Steps for 
Addressing EPA-Issued Step 2 Prevention of Significant Deterioration 
Greenhouse Gas Permits and Associated Requirements'' (OAR Next Steps 
Memo),\6\ the EPA explained that it intended to complete a rulemaking 
``authorizing the rescission of Step 2 PSD permits.'' In the second 
memorandum, which was issued by the Office of Enforcement and 
Compliance Assurance (OECA) and titled, ``No Action Assurance Regarding 
EPA-Issued Step 2 Prevention of Significant Deterioration Permits and 
Related Title V Requirements Following Utility Air Regulatory Group v. 
Environmental Protection Agency'' (OECA No Action Assurance Memo),\7\ 
OECA issued a narrowly tailored No Action Assurance for sources with 
EPA-issued Step 2 PSD permits. The OECA No Action Assurance Memo 
establishes that the EPA will exercise its enforcement discretion not 
to pursue enforcement of the terms and conditions relating to GHGs in a 
source's EPA-issued Step 2 PSD permit, and for related GHG terms and 
conditions that are contained in the source's title V permit, if any, 
until 11:59 p.m. EDT, September 30, 2016. The No Action Assurance 
ceases to apply to a source once its EPA-issued Step 2 PSD permit is 
rescinded, and, if applicable, its title V permit is accordingly 
revised, whichever is later.
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    \5\ For purposes of this rule, the phrases ``EPA-issued PSD 
permits that were issued under Step 2 of the Tailoring Rule'' and 
``EPA-issued Step 2 PSD permits'' are intended to have the same 
meaning. The use of the term ``EPA-issued'' in both phrases includes 
PSD permits issued by the EPA as well as permits issued by state or 
local reviewing authorities exercising federal law authority 
delegated by an EPA Regional Office under 40 CFR 52.21(u).
    \6\ http://www.epa.gov/nsr/ghgdocs/Step2PermitRescissionMemoFinal_12-19-14.pdf.
    \7\ http://epa.gov/nsr/ghgdocs/OECANoActionAssuranceMemo_December192014.pdf.
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    Consistent with the plan described in the OAR Next Steps Memo, the 
EPA completed the rulemaking that allows for rescission of Step 2 
permits. ``Prevention of Significant Deterioration Permitting for 
Greenhouse Gases: Providing Option for Rescission of EPA-Issued 
Tailoring Rule Step 2 Prevention of Significant Deterioration Permits'' 
(80 FR 26183; May 7, 2015). This rule provides a mechanism for the EPA 
and delegated reviewing authorities to rescind EPA-issued Step 2 PSD 
permits in response to requests from applicants who can demonstrate 
that they are eligible for permit rescission and as further discussed 
in that rule. EPA received no comments on this rule, and it is now in 
effect. Sources with questions on PSD permitting obligations arising 
from Step 2 PSD permits issued by state, local or tribal permitting 
authorities under permitting programs approved into the state or tribal 
implementation plans should review the governing statutory provisions 
and the provisions in the applicable state or tribal implementation 
plans to determine how to address these Step 2 permits and consult with 
the EPA, states and tribes, as necessary.
    In the case of sources that trigger PSD based on emissions of 
pollutants other than GHG (``anyway sources''), the PSD BACT 
requirement continues to apply to GHG emissions from such sources. This 
rulemaking does not change Sec. Sec.  51.166(j), 51.166(b)(48)(iv), 
52.21(j),

[[Page 50202]]

or 52.21(b)(48)(iv) of EPA's regulations, which remain in effect. Under 
these provisions, the BACT requirement applies to GHG emissions from 
``anyway sources'' when a new source emits or has the potential to emit 
75,000 tons per year (tpy) or more of GHG on a carbon dioxide 
equivalent (``CO2e'') basis. When an anyway source is 
modified, under these provisions, the BACT requirement applies to GHGs 
if (1) the modification is otherwise subject to PSD for a pollutant 
other than GHG; and (2) the modification results in a GHG emissions 
increase and a net GHG emission increase equal to or greater than 
75,000 tpy or more on a CO2e basis and greater than zero on 
a mass basis.
    With respect to title V, the D.C. Circuit's Amended Judgment in 
Coalition means that the provisions at 40 CFR 70.12 and 71.13 
addressing further consideration of phasing-in of title V permitting 
program requirements at lower GHG emission thresholds are no longer in 
effect. The obligations that they contain for the EPA to further study 
and take further action to consider regulating GHGs at lower GHG 
emissions thresholds under the title V program no longer exist.

V. Environmental Justice Considerations

    This action removes sections and paragraphs of the PSD and title V 
GHG Tailoring Rule regulations that the D.C. Circuit specifically 
identified as vacated in the Coalition Amended Judgment. In accordance 
with the changes made by this action, permit applicants are no longer 
required to request PSD permits if GHGs are the only pollutant (i) that 
the source emits or has the potential to emit above the major source 
thresholds, or (ii) for which there is a significant emissions increase 
and a significant net emissions increase from a modification. In 
addition, the EPA will not be required to take the actions specified in 
the regulations at 40 CFR 52.22, 70.12, and 71.13 to consider further 
phasing in GHG PSD and title V permitting requirements at lower GHG 
emissions thresholds. Therefore, this action itself does not compel any 
specific permit action that will affect the fair treatment and 
meaningful involvement of all people. Rather, it makes clear that a 
portion of the Coalition Amended Judgment is efficiently implemented 
and permit applicants are no longer required to submit PSD permit 
applications if GHGs are the only pollutant that the sources emits 
above the applicable major source thresholds.

VI. Statutory and Executive Order Reviews

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

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. OMB has previously approved the information collection 
activities contained in the existing regulations and has assigned OMB 
control number 2060-0003. To the extent this rule has any substantive 
effect, it relieves regulatory burdens by removing regulations that 
purport to require permit applicants to request PSD permits if GHGs are 
the only pollutant emitted by the new source or modification to an 
existing source above the applicable major source thresholds and 
regulations that required the EPA to consider further phasing-in the 
GHG permitting requirements at lower GHG emission thresholds. This 
action is taken in light of the D.C. Circuit's Coalition Amended 
Judgment that vacated those regulations.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. To the extent this rule has any 
substantive effect, it relieves regulatory burdens by removing 
regulations that purport to require permit applicants to request PSD 
permits if GHGs are the only pollutant emitted by the new source or 
modification to an existing source above the applicable major source 
thresholds and regulations that required the EPA to consider further 
phasing-in the GHG permitting requirements at lower GHG emission 
thresholds. This action is taken in light of the D.C. Circuit's 
Coalition Amended Judgment that vacated those regulations. We have 
therefore concluded that this action will relieve regulatory burden for 
all directly regulated small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local or tribal governments or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states or on the distribution of power 
and responsibilities among the various levels of government.

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

    This action does not have tribal implications, as specified in 
Executive Order 13175. Although the Tribal Air Rule (76 FR 38748, July 
1, 2011) under the CAA gives tribes the opportunity to request and be 
granted delegation of the federal PSD program found at 40 CFR 52.21 to 
issue PSD permits, there are no tribal agencies currently implementing 
the federal PSD permitting program. As a result, the removal of the PSD 
provisions that the D.C. Circuit vacated will not affect any tribal 
reviewing authorities and any tribally-owned sources with EPA-issued 
Step 2 PSD permits have the discretion to request the EPA to rescind 
their permit. In addition, the D.C. Circuit vacatur of the requirements 
for the EPA to consider further phasing in GHG permitting requirements 
into the PSD and title V programs at lower GHG emission thresholds 
provides relief to tribally-owned sources that could have been subject 
to GHG permitting regulations at lower GHG emission thresholds if the 
EPA would have taken steps to apply GHG permitting requirements to such 
sources at such thresholds. Thus, Executive Order 13175 does not apply 
to this action.

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

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

[[Page 50203]]

because it does not concern an environmental health risk or safety 
risk.

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

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    This rulemaking does not involve technical standards.

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

    The EPA believes the human health or environmental risk addressed 
by this action will not have potential disproportionately high and 
adverse human health or environmental effects on minority, low-income 
or indigenous populations. The results of this evaluation are contained 
in the section V titled, ``Environmental Justice Considerations'' for 
this action.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. The CRA allows the issuing agency to make a rule 
effective sooner than otherwise provided by the CRA if the agency makes 
a good cause finding that notice-and-comment rulemaking procedures are 
impracticable, unnecessary or contrary to the public interest (5 U.S.C. 
808(2)). The EPA has made a good cause finding for this rule as 
discussed in the Final Action section of this rulemaking, including the 
basis for that finding.

L. Determination Under Section 307(d)

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

VII. Judicial Review

    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the U.S. Court of Appeals for the D.C. 
Circuit within 60 days from August 19, 2015. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action for the purposes of judicial review, nor 
does it extend the time within which a petition for judicial review may 
be filed, and shall not postpone the effectiveness of such rule or 
action. This action may not be challenged later in proceedings to 
enforce its requirements (see section 307(b)(2) of the CAA).

List of Subjects

40 CFR Parts 51 and 52

    Environmental protection, Air pollution control, Carbon monoxide, 
Greenhouse gases, Incorporation by reference, Intergovernmental 
relations, Lead, National ambient air quality standards, New source 
review, Nitrogen dioxide, Ozone, Particulate matter, Preconstruction 
permitting, Prevention of significant deterioration, Reviewing 
authorities, Sulfur oxides, Tailoring rule, Volatile organic compounds.

40 CFR Parts 70 and 71

    Environmental protection, Air pollution control, Carbon monoxide, 
Greenhouse gases, Intergovernmental relations, Lead, National ambient 
air quality standards, Nitrogen dioxide, Operating permits, Ozone, 
Particulate matter, Permitting authorities, Sulfur oxides, Tailoring 
rule, Title V, Volatile organic compounds.

    Dated: August 12, 2015.
Gina McCarthy,
Administrator.

    For the reasons stated in the preamble, title 40, Chapter I of the 
Code of Federal Regulations is amended as follows:

PART 51--REQUIREMENTS FOR PREPARATION, ADOPTION, AND SUBMITTAL OF 
IMPLEMENTATION PLANS

0
1. The authority citation for part 51 continues to read as follows:

    Authority:  23 U.S.C. 101; 42 U.S.C. 7401-7671q.

Subpart I--Review of New Sources and Modifications


Sec.  51.166  [Amended]

0
2. Section 51.166 is amended by removing paragraph (b)(48)(v).

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart A--General Provisions


Sec.  52.21  [Amended]

0
4. Section 52.21 is amended by removing paragraph (b)(49)(v).


Sec.  52.22  [Removed]

0
5. Section 52.22 is removed.

PART 70--STATE OPERATING PERMIT PROGRAMS

0
6. The authority citation for part 70 continues to read as follows:

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


Sec.  70.12  [Removed]

0
7. Section 70.12 is removed.

PART 71--FEDERAL OPERATING PERMIT PROGRAMS

0
8. The authority citation for part 71 continues to read as follows:

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


Sec.  71.13  [Removed]

0
9. Section 71.13 is removed.
[FR Doc. 2015-20501 Filed 8-18-15; 8:45 am]
 BILLING CODE 6560-50-P



                                                              Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Rules and Regulations                                               50199

                                             ENVIRONMENTAL PROTECTION                                III. Final Action                                       to apply for a title V operating permit
                                             AGENCY                                                  IV. Implementation                                      that includes emission limitations and
                                                                                                     V. Environmental Justice Considerations                 other conditions as necessary to assure
                                             40 CFR Parts 51, 52, 70, and 71                         VI. Statutory and Executive Order Reviews
                                                                                                     VII. Judicial Review
                                                                                                                                                             compliance with applicable
                                             [EPA–HQ–OAR–2015–0414; FRL–9932–11–                                                                             requirements of the CAA.3 The title V
                                             OAR]                                                    I. Does this action apply to me?                        operating permit program is a vehicle
                                                                                                        Entities potentially affected by this                for ensuring that air quality control
                                             Prevention of Significant Deterioration                 final action include new and modified                   requirements are appropriately applied
                                             and Title V Permitting for Greenhouse                   stationary sources in all industry                      to facility emission units and for
                                             Gases: Removal of Certain Vacated                       groups. To determine whether your                       assuring compliance with such
                                             Elements                                                facility would be affected by this action,              requirements. The title V program does
                                                                                                     you should carefully examine the                        not generally impose new substantive
                                             AGENCY:  Environmental Protection                                                                               air quality control requirements, but
                                             Agency.                                                 applicability criteria in §§ 51.166 and
                                                                                                     52.21 of title 40 of the Code of Federal                does require permits to contain
                                             ACTION: Final rule.                                                                                             adequate monitoring, recordkeeping,
                                                                                                     Regulations (CFR). Entities potentially
                                                                                                     affected by this final action also include              reporting and other requirements to
                                             SUMMARY:   The Environmental Protection                                                                         assure sources’ compliance. The title V
                                             Agency (EPA) is amending its                            state, local and tribal governments that
                                                                                                     are authorized to implement the PSD                     program is implemented through
                                             Prevention of Significant Deterioration                                                                         regulations contained in 40 CFR part 70
                                             (PSD) and title V regulations to remove                 program through an EPA-approved State
                                                                                                     Implementation Plan (SIP) or Tribal                     (for programs implemented by state or
                                             from the Code of Federal Regulations                                                                            local agencies and tribes) and 40 CFR
                                             portions of those regulations that were                 Implementation Plan (TIP) or that have
                                                                                                     been authorized to implement the PSD                    part 71 (for programs generally
                                             initially promulgated in 2010 and that                                                                          implemented by the EPA).
                                             the Court of Appeals for the District of                program through a delegation of the
                                                                                                     federal PSD regulations.                                   On June 3, 2010, the EPA published
                                             Columbia Circuit (D.C. Circuit)                                                                                 a final rule, known as the Tailoring
                                             specifically identified as vacated in the               II. Background and Rationale for This                   Rule, which phased in permitting
                                             April 10, 2015, amended judgment,                       Action                                                  requirements for greenhouse gas (GHG)
                                             Coalition for Responsible Regulation v.                    Part C of title I of the Clean Air Act               emissions from stationary sources under
                                             EPA. This action is exempt from notice-                 (CAA or the Act) contains the                           the CAA PSD and title V permitting
                                             and-comment rulemaking because it is                    requirements for a component of the                     programs (75 FR 31514). Under its
                                             ministerial in nature.                                  major New Source Review (NSR)                           interpretation of the CAA at the time,
                                             DATES: This rule is effective on August                 program known as the PSD program.                       the EPA believed the Tailoring Rule was
                                             19, 2015.                                               This program sets forth procedures for                  necessary to avoid a sudden and
                                             ADDRESSES: The EPA has established a                    the preconstruction review and                          unmanageable increase in the number of
                                             docket for this action under Docket ID                  permitting of new and modified                          sources that would be required to obtain
                                             No. EPA–HQ–OAR–2015–0414. All                           stationary sources of air pollution                     PSD and title V permits under the CAA
                                             documents in the docket are listed on                   locating in areas meeting the National                  because the sources emitted or had the
                                             the www.regulations.gov Web site.                       Ambient Air Quality Standards                           potential to emit GHGs above the
                                             Publicly available docket materials are                 (NAAQS) (‘‘attainment’’ areas) and areas                applicable major source and major
                                             available either electronically through                 for which there is insufficient                         modification thresholds. In Step 1 of the
                                             www.regulations.gov or in hard copy at                  information to classify an area as either               Tailoring Rule, which began on January
                                             the EPA Docket Center, Room 3334,                       attainment or nonattainment                             2, 2011, the EPA limited application of
                                             EPA William Jefferson Clinton West                      (‘‘unclassifiable’’ areas). The                         PSD and title V requirements to sources
                                             Building, Room 3334, 1301 Constitution                  applicability of PSD to a particular                    only if they were subject to PSD or title
                                             Avenue NW., Washington, DC 20004.                       source must be determined in advance                    V ‘‘anyway’’ due to their emissions of
                                             The Public Reading Room is open from                    of construction of a new source or major                non-GHG pollutants. These sources are
                                             8:30 a.m. to 4:30 p.m., Monday through                  modification of an existing source and                  referred to as ‘‘anyway sources.’’ In Step
                                             Friday, excluding legal holidays. The                   is pollutant-specific. Once a source is                 2 of the Tailoring Rule, which began on
                                             telephone number for the Public                         determined to be subject to PSD, among                  July 1, 2011, the EPA applied the PSD
                                             Reading Room is (202) 566–1744 and                      other requirements, the source must                     and title V permitting requirements
                                             the telephone number for the Office of                  demonstrate that it will not cause or                   under the CAA to sources that were
                                             Air and Radiation Docket is (202) 566–                  contribute to a violation of any NAAQS                  classified as major, and, thus, required
                                             1742.                                                   or PSD increment,1 and that it will use                 to obtain a permit, based solely on their
                                                                                                     the Best Available Control Technology                   GHG emissions or potential to emit
                                             FOR FURTHER INFORMATION CONTACT:
                                                                                                     (BACT).2 The EPA regulations for the                    GHGs, and to modifications of otherwise
                                             Questions concerning this final rule
                                                                                                     PSD program are contained in 40 CFR                     major sources that required a PSD
                                             should be addressed to Mrs. Jessica
                                                                                                     51.166 (applicable to air agencies that                 permit because they increased only
                                             Montañez, U.S. Environmental
                                                                                                     issue permits under EPA-approved SIPs)                  GHG emissions above the level in the
                                             Protection Agency, Office of Air Quality
                                                                                                     and 40 CFR 52.21 (the federal PSD                       EPA regulations.
                                             Planning and Standards, Air Quality                                                                                On June 23, 2014, the U.S. Supreme
                                             Planning Division, (C504–03), Research                  program applicable to permits issued by
                                                                                                     the EPA or air agencies that have                       Court issued a decision in Utility Air
                                             Triangle Park, NC 27711, telephone                                                                              Regulatory Group (UARG) v. EPA, 134
                                             number (919) 541–3407, email at                         received delegation to implement the
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                                                                                                     federal PSD program).                                   S. Ct. 2427, addressing the application
                                             montanez.jessica@epa.gov.                                                                                       of stationary source permitting
                                                                                                        Title V of the CAA, on the other hand,
                                             SUPPLEMENTARY INFORMATION: The                                                                                  requirements to GHGs. The U.S.
                                                                                                     requires all major stationary sources of
                                             information in this section of the                      air pollution and certain other sources                 Supreme Court held that the EPA may
                                             preamble is organized as follows:                                                                               not treat GHGs as an air pollutant for the
                                             I. Does this action apply to me?                          1 CAA   section 165(a)(3).
                                             II. Background and Rationale for This Action              2 CAA   section 165(a)(4).                              3 CAA   sections 502(a) and 504(a).



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                                             50200            Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Rules and Regulations

                                             specific purpose of determining whether                 regulations to fully implement the                    that the Administrative Procedure Act
                                             a source is a major source (or a                        Coalition Amended Judgment in a                       (APA) good cause exemption applies
                                             modification thereof) and thus required                 separate rulemaking. This future                      here. In general, the APA requires that
                                             to obtain a PSD or title V permit.                      rulemaking will include revisions to                  general notice of proposed rulemaking
                                             However, the U.S. Supreme Court also                    additional definitions in the PSD                     shall be published in the Federal
                                             said that the EPA could continue to                     regulations. It will also include further             Register. Such notice must provide an
                                             require that PSD permits, otherwise                     revising the title V regulations to                   opportunity for public participation in
                                             required based on emissions of                          remove portions of the title V                        the rulemaking process. However, the
                                             pollutants other than GHGs pollutants,                  regulations that were vacated in the                  APA also provides a way for an agency
                                             contain limitations on GHG emissions                    Coalition Amended Judgment case—                      to directly issue a final rulemaking in
                                             based on the application of GHG BACT.                   those that require a stationary source to             certain specific instances. This may
                                             That is, with respect to PSD, the ruling                obtain a title V permit solely because                occur, in particular, when an agency for
                                             effectively upheld PSD permitting                       the source emits or has the potential to              good cause finds (and incorporates the
                                             requirements for GHG emissions under                    emit GHGs above the applicable major                  finding and a brief statement of reasons
                                             Step 1 of the Tailoring Rule for ‘‘anyway               source thresholds. Those additional                   in the rule issued) that notice and
                                             sources,’’ and invalidated PSD                          revisions to the PSD and title V                      public procedure thereon are
                                             permitting requirements for Step 2                      regulations, although necessary to                    impracticable, unnecessary, or contrary
                                             sources.                                                implement the Coalition Amended                       to the public interest. See 5 U.S.C.
                                                Because the Supreme Court decision                   Judgment, are not purely ministerial in               553(b)(3)(B). The EPA has determined
                                             affirmed in part and reversed in part an                nature and will be addressed in this                  that it is not necessary to provide a
                                             earlier decision of the D.C. Circuit in                 separate notice-and-comment                           public hearing or an opportunity for
                                             Coalition for Responsible Regulation v.                 rulemaking, which would give the                      public comment on this action because
                                             EPA, 684 F.3d 102 (D.C. Cir. 2012), on                  public an opportunity to comment on                   the removal of the affected PSD and title
                                             April 10, 2015, the D.C. Circuit issued                 how the EPA proposes to address those                 V Tailoring Rule provisions from the
                                             an Amended Judgment (Nos. 09–1322,                      portions of the Coalition Amended                     CFR is a necessary ministerial act. The
                                             10–073, 10–1092 and 10–1167), which                     Judgment.                                             D.C. Circuit specifically identified as
                                             reflects the UARG v. EPA Supreme                                                                              vacated the PSD and title V regulations
                                             Court decision. The D.C. Circuit                        III. Final Action
                                                                                                                                                           this rule removes, and ordered that the
                                             simultaneously issued its mandate,                         This final action removes from the                 EPA take steps to rescind and/or revise
                                             which means that the Coalition                          CFR several provisions of the PSD and
                                                                                                                                                           the applicable provisions of the CFR as
                                             Amended Judgment became final and                       title V permitting regulations that were
                                                                                                                                                           expeditiously as practicable. The EPA
                                             effective upon issuance.                                originally promulgated as part of the
                                                                                                                                                           no longer has the authority to require
                                                In the Coalition Amended Judgment,                   Tailoring Rule and that the D.C. Circuit
                                                                                                                                                           any source to obtain a PSD or title V
                                             the D.C. Circuit ordered that the EPA                   specifically identified as vacated in the
                                                                                                                                                           permit based solely on the source
                                             regulations under review (including 40                  Coalition Amended Judgment. Because
                                                                                                                                                           having GHG emissions above applicable
                                             CFR 51.166(b)(48)(v) and 40 CFR                         the D.C. Circuit specifically identified
                                                                                                                                                           thresholds. Thus, EPA may not
                                             52.21(b)(49)(v)) be vacated to the extent               the Tailoring Rule Step 2 PSD
                                                                                                                                                           implement the vacated provisions at 40
                                             they require a stationary source to                     permitting requirements in 40 CFR
                                                                                                                                                           CFR 51.166(b)(48)(v) and 52.21(b)(49)(v)
                                             obtain a PSD permit if GHGs are the                     51.166(b)(48)(v) and 40 CFR
                                                                                                     52.21(b)(49)(v) and the regulations that              that applied PSD to this population of
                                             only pollutant (i) that the source emits
                                                                                                     require the EPA to consider further                   sources. Further, the EPA is no longer
                                             or has the potential to emit above the
                                                                                                     phasing-in the GHG permitting                         required to take the actions specified in
                                             applicable major source thresholds, or
                                             (ii) for which there is a significant                   requirements at lower GHG emission                    the vacated regulations at 40 CFR 52.22,
                                             emissions increase from a modification.                 thresholds in 40 CFR 52.22, 70.12, and                70.12, and 71.13 to consider further
                                             The D.C. Circuit also ordered that the                  71.13 as vacated, the EPA is taking the               phasing in GHG PSD and title V
                                             regulations under review be vacated to                  ministerial action of removing these                  permitting requirements at lower GHG
                                             the extent they require (i) a stationary                provisions from the CFR.                              emissions thresholds. Therefore,
                                             source to obtain a title V permit solely                   Furthermore, and since the D.C.                    removing the affected regulatory text
                                             because the source emits or has the                     Circuit’s Coalition Amended Judgment                  simply implements the decision of the
                                             potential to emit GHGs above the                        further ordered ‘‘the EPA to take steps               Supreme Court and D.C. Circuit and it
                                             applicable major source thresholds and                  to rescind and/or revise the applicable               would serve no useful purpose to
                                             (ii) the EPA to consider further phasing-               provisions of the CFR as expeditiously                provide an opportunity for public
                                             in the GHG permitting requirements at                   as practicable’’ to reflect its vacatur of            comment or a public hearing on this
                                             lower GHG emission thresholds (in                       certain provisions from the Tailoring                 issue.
                                             particular 40 CFR 52.22 and 40 CFR                      Rule, this rulemaking addresses only                     In addition, notice-and-comment
                                             70.12, 71.13).                                          those provisions specifically identified              would be contrary to the public interest
                                                Consistent with the Coalition                        in the Coalition Amended Judgment that                because it would unnecessarily delay
                                             Amended Judgment, this action removes                   can be removed from the CFR without                   the removal from the CFR of the
                                             from the PSD regulations certain                        the need for any further changes. In a                Tailoring Rule Step 2 PSD permitting
                                             regulatory provisions that require a                    subsequent notice-and-comment                         provisions that the Supreme Court held
                                             stationary source to obtain a PSD permit                rulemaking, the EPA will need to make                 were invalid and the regulations that
                                             solely on the basis of the source’s GHG                 additional changes to its PSD and title               require the EPA to consider further
                                             emissions and the regulations that                                                                            phasing-in the GHG permitting
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                                                                                                     V permitting regulations in order to
                                             require the EPA to consider further                     fully implement the Coalition Amended                 requirements for lower GHG emissions
                                             phasing-in GHG permitting                               Judgment.                                             thresholds in 40 CFR 52.22, 70.12, and
                                             requirements into the PSD and title V                      The EPA is taking this action as a                 71.13 that the D.C. Circuit’s Coalition
                                             permitting programs at lower GHG                        final rule without providing an                       Amended Judgment specifically
                                             emissions thresholds. The EPA intends                   opportunity for public comment or a                   identified as vacated. Such delay could
                                             to further revise the PSD and title V                   public hearing because the EPA finds                  result in confusion on the part of the


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                                                              Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Rules and Regulations                                       50201

                                             regulated industry and state, local and                 permitting requirements at lower GHG                  memorandum, which was issued by the
                                             tribal air agencies about how the D.C.                  emissions thresholds.                                 Office of Enforcement and Compliance
                                             Circuit’s decision affects the PSD and                     Permit reviewing authorities with                  Assurance (OECA) and titled, ‘‘No
                                             title V regulations as well as PSD                      EPA-approved SIPs containing any or                   Action Assurance Regarding EPA-Issued
                                             permitting. Promulgation of this rule                   all of the affected provisions previously             Step 2 Prevention of Significant
                                             soon after the D.C. Circuit decision                    allowed by 40 CFR 51.166(b)(48)(v) may                Deterioration Permits and Related Title
                                             serves to clarify that sources are no                   request to remove their corresponding                 V Requirements Following Utility Air
                                             longer required to obtain PSD permits                   Tailoring Rule Step 2 provisions as soon              Regulatory Group v. Environmental
                                             under the preconstruction permitting                    as feasible, which may be in                          Protection Agency’’ (OECA No Action
                                             regulations associated with Step 2 of the               conjunction with the next otherwise                   Assurance Memo),7 OECA issued a
                                             Tailoring Rule and that the EPA will not                planned SIP revision. Permit reviewing                narrowly tailored No Action Assurance
                                             be required under 40 CFR 52.22, 70.12,                  authorities also have the option to retain            for sources with EPA-issued Step 2 PSD
                                             and 71.13 to take further steps to                      the Tailoring Rule Step 2 permitting                  permits. The OECA No Action
                                             consider further phasing in PSD and                     requirements solely as a requirement of               Assurance Memo establishes that the
                                             title V permitting requirements at lower                state law, but these requirements will                EPA will exercise its enforcement
                                             GHG emissions thresholds. Given the                     not be approved as part of their                      discretion not to pursue enforcement of
                                             substantial costs to the owner/operator                 federally-enforceable SIP. As we                      the terms and conditions relating to
                                             of projects associated with delays and                  explained in a memorandum issued by                   GHGs in a source’s EPA-issued Step 2
                                             uncertainty, it is in the public interest               the agency on July 24, 2014, titled,                  PSD permit, and for related GHG terms
                                             for the EPA to amend the CFR without                    ‘‘Next Steps and Preliminary Views on                 and conditions that are contained in the
                                             delay. Furthermore, and as stated                       the Application of Clean Air Act                      source’s title V permit, if any, until
                                             previously, the D.C. Circuit’s Coalition                Permitting Programs to Greenhouse                     11:59 p.m. EDT, September 30, 2016.
                                             Amended Judgment ordered the EPA to                     Gases Following the Supreme Court’s                   The No Action Assurance ceases to
                                             take steps to undertake these revisions                 Decision in UARG v. EPA’’ (Preliminary                apply to a source once its EPA-issued
                                             as expeditiously as practicable.                        Views Memo),4 we again note that the                  Step 2 PSD permit is rescinded, and, if
                                                For these reasons, the EPA finds good                ‘‘[EPA does] not read the [U.S.] Supreme              applicable, its title V permit is
                                             cause to issue a final rulemaking                       Court decision to preclude states from                accordingly revised, whichever is later.
                                             pursuant to section 553 of the APA, 5                   retaining permitting requirements for                    Consistent with the plan described in
                                             U.S.C. 553(b)(3)(B). The requirements of                sources of GHG emissions that apply                   the OAR Next Steps Memo, the EPA
                                             CAA section 307(d), including the                       independently under state law even                    completed the rulemaking that allows
                                             requirement for public comment and                      where those requirements are no longer                for rescission of Step 2 permits.
                                             hearing on proposed rulemakings, do                     required under federal law.’’                         ‘‘Prevention of Significant Deterioration
                                                                                                        With regard to PSD Step 2 permits                  Permitting for Greenhouse Gases:
                                             not apply to this action because 5 U.S.C.
                                                                                                     already issued, the Preliminary Views                 Providing Option for Rescission of EPA-
                                             553(b)(3)(B) applies. In addition, this
                                                                                                     Memo explained that the EPA ‘‘will no                 Issued Tailoring Rule Step 2 Prevention
                                             rule relieves a restriction on
                                                                                                     longer require PSD . . . permits for Step             of Significant Deterioration Permits’’ (80
                                             construction of some stationary sources
                                                                                                     2 sources’’ (Preliminary Views Memo at                FR 26183; May 7, 2015). This rule
                                             and therefore is not subject to the
                                                                                                     2) and that the EPA expected ‘‘to                     provides a mechanism for the EPA and
                                             requirement for a 30-day delay in
                                                                                                     provide additional views in the future                delegated reviewing authorities to
                                             effective date. 5 U.S.C. 553(d)(1).
                                                                                                     with respect to Step 2 sources that had               rescind EPA-issued Step 2 PSD permits
                                             Moreover, the agency finds that the
                                                                                                     already obtained a PSD permit . . .’’                 in response to requests from applicants
                                             problems outlined above regarding the
                                                                                                     (Preliminary Views Memo at 4). The                    who can demonstrate that they are
                                             effects of delaying issuance of the rule
                                                                                                     EPA provided additional views                         eligible for permit rescission and as
                                             also provide good cause for not delaying
                                                                                                     regarding EPA-issued Step 2 PSD                       further discussed in that rule. EPA
                                             its effective date. 5 U.S.C. 553(d)(3).
                                                                                                     permits 5 when it issued two                          received no comments on this rule, and
                                             Accordingly, the requirement for a delay
                                                                                                     memoranda on December 19, 2014. In                    it is now in effect. Sources with
                                             in effective date does not apply and the
                                                                                                     the first memorandum issued by the                    questions on PSD permitting obligations
                                             rule will take effect upon publication in
                                                                                                     Office of Air and Radiation (OAR) and                 arising from Step 2 PSD permits issued
                                             the Federal Register. 5 U.S.C. 553(d).
                                                                                                     titled, ‘‘Next Steps for Addressing EPA-              by state, local or tribal permitting
                                             IV. Implementation                                      Issued Step 2 Prevention of Significant               authorities under permitting programs
                                                                                                     Deterioration Greenhouse Gas Permits                  approved into the state or tribal
                                               The D.C. Circuit’s vacatur of the
                                                                                                     and Associated Requirements’’ (OAR                    implementation plans should review the
                                             Tailoring Rule Step 2 PSD permitting
                                                                                                     Next Steps Memo),6 the EPA explained                  governing statutory provisions and the
                                             requirements in 40 CFR 51.166(b)(48)(v)
                                                                                                     that it intended to complete a                        provisions in the applicable state or
                                             and 40 CFR 52.21(b)(49)(v) and the
                                                                                                     rulemaking ‘‘authorizing the rescission               tribal implementation plans to
                                             provisions that required further action
                                                                                                     of Step 2 PSD permits.’’ In the second                determine how to address these Step 2
                                             to consider phasing-in GHG permitting
                                                                                                                                                           permits and consult with the EPA, states
                                             requirements into the PSD and title V                      4 http://epa.gov/nsr/documents/
                                                                                                                                                           and tribes, as necessary.
                                             programs at lower GHG emission                          20140724memo.pdf.                                        In the case of sources that trigger PSD
                                             thresholds at 40 CFR 52.22, 70.12, and                     5 For purposes of this rule, the phrases ‘‘EPA-
                                                                                                                                                           based on emissions of pollutants other
                                             71.13 means that these provisions can                   issued PSD permits that were issued under Step 2
                                                                                                     of the Tailoring Rule’’ and ‘‘EPA-issued Step 2 PSD   than GHG (‘‘anyway sources’’), the PSD
                                             no longer be relied upon by the EPA,
                                                                                                     permits’’ are intended to have the same meaning.      BACT requirement continues to apply to
                                             permit applicants or permitting
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                                                                                                     The use of the term ‘‘EPA-issued’’ in both phrases    GHG emissions from such sources. This
                                             authorities as a basis for issuing PSD                  includes PSD permits issued by the EPA as well as
                                                                                                                                                           rulemaking does not change
                                             permits. Further, this means that the                   permits issued by state or local reviewing
                                                                                                     authorities exercising federal law authority          §§ 51.166(j), 51.166(b)(48)(iv), 52.21(j),
                                             EPA will not be required to take the
                                                                                                     delegated by an EPA Regional Office under 40 CFR
                                             actions specified in the regulations at 40              52.21(u).                                               7 http://epa.gov/nsr/ghgdocs/
                                             CFR 52.22, 70.12, and 71.13 to consider                    6 http://www.epa.gov/nsr/ghgdocs/                  OECANoActionAssuranceMemo_
                                             further phasing in GHG PSD and title V                  Step2PermitRescissionMemoFinal_12-19-14.pdf.          December192014.pdf.



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                                             50202            Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Rules and Regulations

                                             or 52.21(b)(48)(iv) of EPA’s regulations,               VI. Statutory and Executive Order                     D. Unfunded Mandates Reform Act
                                             which remain in effect. Under these                     Reviews                                               (UMRA)
                                             provisions, the BACT requirement                        A. Executive Order 12866: Regulatory                     This action does not contain any
                                             applies to GHG emissions from ‘‘anyway                  Planning and Review and Executive                     unfunded mandate as described in
                                             sources’’ when a new source emits or                    Order 13563: Improving Regulation and                 UMRA, 2 U.S.C. 1531–1538, and does
                                             has the potential to emit 75,000 tons per               Regulatory Review                                     not significantly or uniquely affect small
                                             year (tpy) or more of GHG on a carbon                                                                         governments. The action imposes no
                                                                                                       This action is not a significant
                                             dioxide equivalent (‘‘CO2e’’) basis.                                                                          enforceable duty on any state, local or
                                                                                                     regulatory action and was therefore not
                                             When an anyway source is modified,                                                                            tribal governments or the private sector.
                                                                                                     submitted to the Office of Management
                                             under these provisions, the BACT                        and Budget (OMB) for review.
                                             requirement applies to GHGs if (1) the                                                                        E. Executive Order 13132: Federalism
                                             modification is otherwise subject to PSD                B. Paperwork Reduction Act (PRA)                        This action does not have federalism
                                             for a pollutant other than GHG; and (2)                   This action does not impose any new                 implications. It will not have substantial
                                             the modification results in a GHG                       information collection burden under the               direct effects on the states, on the
                                             emissions increase and a net GHG                        PRA. OMB has previously approved the                  relationship between the national
                                             emission increase equal to or greater                   information collection activities                     government and the states or on the
                                             than 75,000 tpy or more on a CO2e basis                 contained in the existing regulations                 distribution of power and
                                             and greater than zero on a mass basis.                  and has assigned OMB control number                   responsibilities among the various
                                                                                                     2060–0003. To the extent this rule has                levels of government.
                                                With respect to title V, the D.C.
                                             Circuit’s Amended Judgment in                           any substantive effect, it relieves                   F. Executive Order 13175: Consultation
                                                                                                     regulatory burdens by removing                        and Coordination With Indian Tribal
                                             Coalition means that the provisions at
                                                                                                     regulations that purport to require                   Governments
                                             40 CFR 70.12 and 71.13 addressing
                                                                                                     permit applicants to request PSD
                                             further consideration of phasing-in of                                                                           This action does not have tribal
                                                                                                     permits if GHGs are the only pollutant
                                             title V permitting program requirements                 emitted by the new source or                          implications, as specified in Executive
                                             at lower GHG emission thresholds are                    modification to an existing source above              Order 13175. Although the Tribal Air
                                             no longer in effect. The obligations that               the applicable major source thresholds                Rule (76 FR 38748, July 1, 2011) under
                                             they contain for the EPA to further                     and regulations that required the EPA to              the CAA gives tribes the opportunity to
                                             study and take further action to consider               consider further phasing-in the GHG                   request and be granted delegation of the
                                             regulating GHGs at lower GHG                            permitting requirements at lower GHG                  federal PSD program found at 40 CFR
                                             emissions thresholds under the title V                  emission thresholds. This action is                   52.21 to issue PSD permits, there are no
                                             program no longer exist.                                taken in light of the D.C. Circuit’s                  tribal agencies currently implementing
                                                                                                     Coalition Amended Judgment that                       the federal PSD permitting program. As
                                             V. Environmental Justice
                                                                                                     vacated those regulations.                            a result, the removal of the PSD
                                             Considerations
                                                                                                                                                           provisions that the D.C. Circuit vacated
                                                                                                     C. Regulatory Flexibility Act (RFA)                   will not affect any tribal reviewing
                                                This action removes sections and
                                             paragraphs of the PSD and title V GHG                      I certify that this action will not have           authorities and any tribally-owned
                                             Tailoring Rule regulations that the D.C.                a significant economic impact on a                    sources with EPA-issued Step 2 PSD
                                             Circuit specifically identified as vacated              substantial number of small entities                  permits have the discretion to request
                                             in the Coalition Amended Judgment. In                   under the RFA. In making this                         the EPA to rescind their permit. In
                                                                                                     determination, the impact of concern is               addition, the D.C. Circuit vacatur of the
                                             accordance with the changes made by
                                                                                                     any significant adverse economic                      requirements for the EPA to consider
                                             this action, permit applicants are no
                                                                                                     impact on small entities. An agency may               further phasing in GHG permitting
                                             longer required to request PSD permits
                                                                                                     certify that a rule will not have a                   requirements into the PSD and title V
                                             if GHGs are the only pollutant (i) that
                                                                                                     significant economic impact on a                      programs at lower GHG emission
                                             the source emits or has the potential to                substantial number of small entities if               thresholds provides relief to tribally-
                                             emit above the major source thresholds,                 the rule relieves regulatory burden, has              owned sources that could have been
                                             or (ii) for which there is a significant                no net burden or otherwise has a                      subject to GHG permitting regulations at
                                             emissions increase and a significant net                positive economic effect on the small                 lower GHG emission thresholds if the
                                             emissions increase from a modification.                 entities subject to the rule. To the extent           EPA would have taken steps to apply
                                             In addition, the EPA will not be                        this rule has any substantive effect, it              GHG permitting requirements to such
                                             required to take the actions specified in               relieves regulatory burdens by removing               sources at such thresholds. Thus,
                                             the regulations at 40 CFR 52.22, 70.12,                 regulations that purport to require                   Executive Order 13175 does not apply
                                             and 71.13 to consider further phasing in                permit applicants to request PSD                      to this action.
                                             GHG PSD and title V permitting                          permits if GHGs are the only pollutant
                                             requirements at lower GHG emissions                     emitted by the new source or                          G. Executive Order 13045: Protection of
                                             thresholds. Therefore, this action itself               modification to an existing source above              Children From Environmental Health
                                             does not compel any specific permit                     the applicable major source thresholds                Risks and Safety Risks
                                             action that will affect the fair treatment              and regulations that required the EPA to                The EPA interprets Executive Order
                                             and meaningful involvement of all                       consider further phasing-in the GHG                   13045 as applying only to those
                                             people. Rather, it makes clear that a                   permitting requirements at lower GHG                  regulatory actions that concern
                                             portion of the Coalition Amended                        emission thresholds. This action is                   environmental health or safety risks that
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                                             Judgment is efficiently implemented                     taken in light of the D.C. Circuit’s                  the EPA has reason to believe may
                                             and permit applicants are no longer                     Coalition Amended Judgment that                       disproportionately affect children, per
                                             required to submit PSD permit                           vacated those regulations. We have                    the definition of ‘‘covered regulatory
                                             applications if GHGs are the only                       therefore concluded that this action will             action’’ in section 2–202 of the
                                             pollutant that the sources emits above                  relieve regulatory burden for all directly            Executive Order. This action is not
                                             the applicable major source thresholds.                 regulated small entities.                             subject to Executive Order 13045


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                                                              Federal Register / Vol. 80, No. 160 / Wednesday, August 19, 2015 / Rules and Regulations                                               50203

                                             because it does not concern an                          Administrator of this final rule does not             Subpart A—General Provisions
                                             environmental health risk or safety risk.               affect the finality of this action for the
                                                                                                     purposes of judicial review, nor does it              § 52.21    [Amended]
                                             H. Executive Order 13211: Actions
                                                                                                     extend the time within which a petition               ■ 4. Section 52.21 is amended by
                                             Concerning Regulations That
                                                                                                     for judicial review may be filed, and                 removing paragraph (b)(49)(v).
                                             Significantly Affect Energy Supply,
                                                                                                     shall not postpone the effectiveness of
                                             Distribution or Use                                                                                           § 52.22    [Removed]
                                                                                                     such rule or action. This action may not
                                               This action is not subject to Executive               be challenged later in proceedings to                 ■   5. Section 52.22 is removed.
                                             Order 13211, because it is not a                        enforce its requirements (see section
                                             significant regulatory action under                     307(b)(2) of the CAA).                                PART 70—STATE OPERATING PERMIT
                                             Executive Order 12866.                                                                                        PROGRAMS
                                                                                                     List of Subjects
                                             I. National Technology Transfer and                                                                           ■ 6. The authority citation for part 70
                                             Advancement Act                                         40 CFR Parts 51 and 52
                                                                                                                                                           continues to read as follows:
                                               This rulemaking does not involve                        Environmental protection, Air
                                                                                                                                                               Authority: 42 U.S.C. 7401, et. seq.
                                             technical standards.                                    pollution control, Carbon monoxide,
                                                                                                     Greenhouse gases, Incorporation by                    § 70.12    [Removed]
                                             J. Executive Order 12898: Federal                       reference, Intergovernmental relations,
                                             Actions To Address Environmental                                                                              ■   7. Section 70.12 is removed.
                                                                                                     Lead, National ambient air quality
                                             Justice in Minority Populations and                     standards, New source review, Nitrogen
                                             Low-Income Populations                                                                                        PART 71—FEDERAL OPERATING
                                                                                                     dioxide, Ozone, Particulate matter,                   PERMIT PROGRAMS
                                               The EPA believes the human health or                  Preconstruction permitting, Prevention
                                             environmental risk addressed by this                    of significant deterioration, Reviewing               ■ 8. The authority citation for part 71
                                             action will not have potential                          authorities, Sulfur oxides, Tailoring                 continues to read as follows:
                                             disproportionately high and adverse                     rule, Volatile organic compounds.                         Authority: 42 U.S.C. 7401, et. seq.
                                             human health or environmental effects                   40 CFR Parts 70 and 71
                                             on minority, low-income or indigenous                                                                         § 71.13    [Removed]
                                             populations. The results of this                          Environmental protection, Air                       ■ 9. Section 71.13 is removed.
                                             evaluation are contained in the section                 pollution control, Carbon monoxide,                   [FR Doc. 2015–20501 Filed 8–18–15; 8:45 am]
                                             V titled, ‘‘Environmental Justice                       Greenhouse gases, Intergovernmental                   BILLING CODE 6560–50–P
                                             Considerations’’ for this action.                       relations, Lead, National ambient air
                                                                                                     quality standards, Nitrogen dioxide,
                                             K. Congressional Review Act (CRA)                       Operating permits, Ozone, Particulate                 ENVIRONMENTAL PROTECTION
                                               This action is subject to the CRA, and                matter, Permitting authorities, Sulfur                AGENCY
                                             the EPA will submit a rule report to                    oxides, Tailoring rule, Title V, Volatile
                                             each House of the Congress and to the                   organic compounds.                                    40 CFR Part 52
                                             Comptroller General of the United                         Dated: August 12, 2015.                             [EPA–R01–OAR–2009–0541; A–1–FRL–
                                             States. The CRA allows the issuing                      Gina McCarthy,                                        9932–46–Region 1]
                                             agency to make a rule effective sooner
                                                                                                     Administrator.
                                             than otherwise provided by the CRA if                                                                         Approval and Promulgation of Air
                                             the agency makes a good cause finding                     For the reasons stated in the                       Quality Implementation Plans; Rhode
                                             that notice-and-comment rulemaking                      preamble, title 40, Chapter I of the Code             Island; Rhode Island Low Emission
                                             procedures are impracticable,                           of Federal Regulations is amended as                  Vehicle Program
                                             unnecessary or contrary to the public                   follows:
                                             interest (5 U.S.C. 808(2)). The EPA has                                                                       AGENCY:  Environmental Protection
                                             made a good cause finding for this rule                 PART 51—REQUIREMENTS FOR                              Agency (EPA).
                                             as discussed in the Final Action section                PREPARATION, ADOPTION, AND                            ACTION: Final rule.
                                             of this rulemaking, including the basis                 SUBMITTAL OF IMPLEMENTATION
                                             for that finding.                                       PLANS                                                 SUMMARY:   The Environmental Protection
                                                                                                                                                           Agency (EPA) is approving a State
                                             L. Determination Under Section 307(d)                   ■ 1. The authority citation for part 51               Implementation Plan (SIP) revision
                                                Pursuant to CAA section 307(d)(1)(V),                continues to read as follows:                         submitted by the State of Rhode Island
                                             the Administrator determines that this                    Authority: 23 U.S.C. 101; 42 U.S.C. 7401–           Department of Environmental
                                             action is subject to provisions of section              7671q.                                                Management. The regulations adopted
                                             307(d). Section 307(d) establishes                                                                            by Rhode Island include the California
                                             procedural requirements specific to                     Subpart I—Review of New Sources and                   Low Emission Vehicle (LEV) II light-
                                             rulemaking under the CAA. Section                       Modifications                                         duty motor vehicle emission standards
                                             307(d)(1)(V) provides that the                                                                                effective in model year 2008, the
                                                                                                     § 51.166    [Amended]
                                             provisions of section 307(d) apply to                                                                         California LEV II medium-duty vehicle
                                             ‘‘such other actions as the Administrator               ■ 2. Section 51.166 is amended by                     standards effective in model year 2009,
                                             may determine.’’                                        removing paragraph (b)(48)(v).                        and greenhouse gas emission standards
                                                                                                                                                           for light-duty motor vehicles and
                                             VII. Judicial Review                                    PART 52—APPROVAL AND                                  medium-duty vehicles effective with
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                                               Under section 307(b)(1) of the CAA,                   PROMULGATION OF                                       model year 2009. The Rhode Island LEV
                                             petitions for judicial review of this                   IMPLEMENTATION PLANS                                  regulation submitted also includes a
                                             action must be filed in the U.S. Court of                                                                     zero emission vehicle (ZEV) provision.
                                             Appeals for the D.C. Circuit within 60                  ■ 3. The authority citation for part 52               Rhode Island has adopted these
                                             days from August 19, 2015. Filing a                     continues to read as follows:                         revisions to reduce emissions of volatile
                                             petition for reconsideration by the                         Authority: 42 U.S.C. 7401 et. seq.                organic compounds (VOC) and nitrogen


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Document Created: 2015-12-15 11:58:51
Document Modified: 2015-12-15 11:58:51
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis rule is effective on August 19, 2015.
ContactQuestions concerning this final rule
FR Citation80 FR 50199 
CFR Citation40 CFR 51
40 CFR 52
40 CFR 70
40 CFR 71
CFR AssociatedEnvironmental Protection; Air Pollution Control; Carbon Monoxide; Greenhouse Gases; Incorporation by Reference; Intergovernmental Relations; Lead; National Ambient Air Quality Standards; New Source Review; Nitrogen Dioxide; Ozone; Particulate Matter; Preconstruction Permitting; Prevention of Significant Deterioration; Reviewing Authorities; Sulfur Oxides; Tailoring Rule; Volatile Organic Compounds; Operating Permits; Permitting Authorities and Title V

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