82_FR_14708 82 FR 14654 - Approval and Promulgation of Implementation Plans; Oregon: Permitting and General Rule Revisions

82 FR 14654 - Approval and Promulgation of Implementation Plans; Oregon: Permitting and General Rule Revisions

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 54 (March 22, 2017)

Page Range14654-14670
FR Document2017-05463

The Environmental Protection Agency (EPA) proposes to approve, and incorporate by reference, specific changes to Oregon's State Implementation Plan (SIP) submitted on April 22, 2015. The changes relate to the criteria pollutants for which the EPA has established national ambient air quality standards--carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter, and sulfur dioxide. Specifically, the changes account for new federal requirements for fine particulate matter, update the major and minor source pre-construction permitting programs, and add state-level air quality designations. The changes also address public notice procedures for informational meetings, and tighten emission standards for dust and smoke. In addition, Oregon reorganized rules in the SIP by consolidating definitions, removing duplicate provisions, correcting errors, and removing outdated provisions. We note that certain rule changes are not appropriate for SIP approval, or are inconsistent with Clean Air Act requirements. In those cases, we are not approving the revisions.

Federal Register, Volume 82 Issue 54 (Wednesday, March 22, 2017)
[Federal Register Volume 82, Number 54 (Wednesday, March 22, 2017)]
[Proposed Rules]
[Pages 14654-14670]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-05463]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R10-OAR-2015-0333; FRL-9959-06-Region 10]


Approval and Promulgation of Implementation Plans; Oregon: 
Permitting and General Rule Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) proposes to approve, 
and incorporate by reference, specific changes to Oregon's State 
Implementation Plan (SIP) submitted on April 22, 2015. The changes 
relate to the criteria pollutants for which the EPA has established 
national ambient air quality standards--carbon monoxide, lead, nitrogen 
dioxide, ozone, particulate matter, and sulfur dioxide. Specifically, 
the changes account for new federal requirements for fine particulate 
matter, update the major and minor source pre-construction permitting 
programs, and add state-level air quality designations. The changes 
also address public notice procedures for informational meetings, and 
tighten emission standards for dust and smoke. In addition, Oregon 
reorganized rules in the SIP by consolidating definitions, removing 
duplicate provisions, correcting errors, and removing outdated 
provisions. We note that certain rule changes are not appropriate for 
SIP approval, or are inconsistent with Clean Air Act requirements. In 
those cases, we are not approving the revisions.

DATES: Comments must be received on or before April 21, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R10-
OAR-2015-0333, at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from regulations.gov. The EPA may publish any 
comment received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. The EPA 
will generally not consider comments or comment contents located 
outside of the primary submission (i.e. on the web, cloud, or other 
file sharing system). For additional submission methods, the full EPA 
public comment policy, information about CBI or multimedia submissions, 
and general guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Kristin Hall, Air Planning Unit, 
Office of Air and Waste (OAW-150), Environmental Protection Agency--
Region 10, 1200 Sixth Ave., Seattle, WA 98101; telephone number: (206) 
553-6357; email address: [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, wherever ``we,'' 
``us,'' or ``our'' is used, it is intended to refer to the EPA.

Table of Contents

I. Background
II. Evaluation of Revisions
    A. Division 200: General Air Pollution Procedures and 
Definitions
    B. Division 202: Ambient Air Quality Standards and PSD 
Increments
    C. Division 204: Designation of Air Quality Areas
    D. Division 206: Air Pollution Emergencies
    E. Division 208: Visible Emissions and Nuisance Requirements
    F. Division 209: Public Participation
    G. Division 210: Stationary Source Notification Requirements
    H. Division 212: Stationary Source Testing and Monitoring
    I. Division 214: Stationary Source Reporting Requirements
    J. Division 216: Air Contaminant Discharge Permits
    K. Division 222: Stationary Source Plant Site Emission Limits
    L. Division 224: New Source Review
    M. Division 225: Air Quality Analysis Requirements
    N. Division 226: General Emission Standards
    O. Division 228: Requirements for Fuel Burning Equipment and 
Fuel Sulfur Content
    P. Division 232: Emission Standards for VOC Point Sources
    Q. Division 234: Emissions Standards for Wood Products 
Industries
    R. Division 236: Emissions Standards for Specific Industries
    S. Division 240: Rules for Areas With Unique Air Quality Needs
    T. Division 242: Rules Applicable to the Portland Area

[[Page 14655]]

    U. Division 262: Heat Smart Program for Residential Woodstoves 
and Other Solid Fuel Heating Devices
    V. Division 264: Rules for Open Burning
    W. Division 268: Emission Reduction Credits
    X. Source Sampling Manual and Continuous Monitoring Manual
IV. Proposed Action
    A. Rules Approved and Incorporated by Reference
    B. Rules Approved but Not Incorporated by Reference
    C. Rules Removed
    D. Rules Not Approved
V. Incorporation by Reference
VI. Oregon Notice Provision
VII. Statutory and Executive Order Reviews

I. Background

    Each state has a SIP containing the control measures and strategies 
used to attain and maintain the national ambient air quality standards 
(NAAQS) established by the EPA for the criteria pollutants (carbon 
monoxide, lead, nitrogen dioxide, ozone, particulate matter, sulfur 
dioxide). The SIP is extensive, containing such elements as air 
pollution control regulations, emission inventories, monitoring 
network, attainment demonstrations, and enforcement mechanisms. The SIP 
is a living compilation of these elements and is revised and updated by 
the state over time--to keep pace with federal requirements and to 
address changing air quality issues in the state.
    On April 22, 2015, the Oregon Department of Environmental Quality 
(ODEQ) submitted significant revisions to the Oregon SIP. Oregon made 
changes to 26 Oregon Administrative Rule (OAR) divisions within Chapter 
340, and two source sampling and monitoring manuals related to the 
rules. These changes, effective April 16, 2015, are part of Oregon's 
ongoing efforts to update state air quality rules and the SIP.
    Oregon's April 22, 2015 submission documents the public notice and 
hearing process undertaken by the state, including the state's response 
to comments received. The submission requests EPA approval of the 
following changes to air quality rules in Oregon's federally-approved 
State Implementation Plan (SIP):
     Updates particulate matter emission standards;
     revises permitting requirements for emergency generators 
and small natural gas or oil-fired equipment;
     establishes two new state air quality area designations--
sustainment and reattainment;
     revises the major and minor source pre-construction 
permitting programs;
     changes public processes for informational meetings;
     revises the state's woodstove replacement program for 
small commercial solid fuel boilers regulated under the permitting 
program;
     updates the Oregon Source Sampling Manual, Volumes I and 
II, and the Oregon Continuous Monitoring Manual; and
     removes annual reporting requirements for small gasoline 
dispensing facilities.
    As part of the submission, Oregon included a staff report outlining 
the changes to the state air quality rules and how the revised rules 
have been designed to protect air quality standards. Oregon also 
developed a ``crosswalk'' document--a comprehensive list of the rule 
changes and why they were proposed. The submission, including the staff 
report, crosswalk document, public comments and responses, is located 
in the docket for this action.
    We note that on November 14, 2016, Oregon submitted a letter to 
correct administrative errors in the original April 20, 2015, cover 
letter and attachment. In the letter of correction, Oregon identified 
several rules that were submitted to the EPA in error. These rules were 
not adopted by the Oregon Environmental Quality Commission (EQC) as 
part of the Oregon SIP, and should not have been submitted for SIP 
approval. Oregon also noted one provision that was adopted by the EQC 
and should have been submitted. Please see the November 14, 2016 letter 
of correction in the docket for this action.
    Below, we discuss our review of the submitted changes to the Oregon 
SIP, and our proposed action. We have focused on the substantive rule 
revisions. We did not describe the many typographical corrections, 
minor edits, and renumbering changes. We also note this action does not 
address submitted revisions for small gasoline dispensing facilities 
because we approved the revisions on October 27, 2015 (80 FR 65655).

II. Evaluation of Revisions

A. Division 200: General Air Pollution Procedures and Definitions

Definitions
    Division 200 contains definitions used throughout the air quality 
divisions of Chapter 340 of the OAR, as well as other generally-
applicable rules. However, over time, terms and definitions have also 
been established throughout other divisions. In the submitted changes, 
Oregon re-organized and streamlined rules to move most air quality 
terms and definitions into Division 200. Oregon also moved procedural 
elements out of the definitions in Division 200, and into the specific 
divisions to which they apply. Duplicate and obsolete terms were 
removed. In this section of our evaluation, we discuss key changes to 
existing definitions and new terms used in multiple divisions. 
Substantive new terms, or revisions to definitions that are mostly used 
in a single division, are evaluated in Sections B through X below (in 
the discussion of the changes to the specific division).
    To improve clarity, the state revised key definitions to 
consistently use certain terms--such as ``regulated pollutant,'' 
``control device,'' ``major modification,'' ``major source,'' and 
``unclassified,''--and removed variations on these terms that may have 
created confusion. Oregon also added new definitions to Division 200. 
``Capture efficiency,'' ``control efficiency,'' ``destruction 
efficiency,'' and ``removal efficiency'' were added to differentiate 
amongst similar terms. The state defined the term ``internal combustion 
sources'' to clarify the universe of regulated fuel burning equipment 
under Oregon's rules.
    Oregon also defined the term ``portable,'' as ``designed and 
capable of being carried or moved from one location to another.'' At 
the same time, the state revised the definition of ``stationary 
source'' to include portable sources required to have permits under 
Oregon's air contaminant discharge permitting (ACDP) program at 
Division 216. ``Wood fuel-fired device'' was used in multiple Oregon 
rules, but was never formally defined. The state added the term, 
defined as ``a device or appliance designed for wood fuel combustion, 
including cordwood stoves, woodstoves, and fireplace stove inserts, 
fireplaces, wood fuel-fired cook stoves, pellet stoves and combination 
fuel furnaces and boilers that burn wood fuels.'' The remainder of the 
new definitions established are common dictionary terms.
    Oregon also made substantive changes to several definitions. The 
definition of ``adjacent'' at OAR 340-200-0020(4) was narrowed by 
limiting the use of this defined term (``interdependent facilities that 
are nearby to each other'') to its use in the ``major source'' 
definition at OAR 340-200-0020(91), and in the air contaminant 
discharge permit program (ACDP) at OAR 340-216-0070. In other places 
where the term ``adjacent'' is used, the ODEQ's response to comments 
document in the submission indicates that the ODEQ intends to use the 
dictionary definition.

[[Page 14656]]

    Oregon revised the term ``categorically insignificant activities'' 
at OAR 340-200-0020(23) in several respects. In general, the revisions 
narrow when emissions may be excluded from consideration--in some 
aspects of Oregon's permitting program--as ``insignificant.'' For 
example, Oregon put a cap on the aggregate emissions from fuel burning 
equipment that may be considered categorically insignificant, and also 
restricted when emergency generators may be considered categorically 
insignificant (limiting the exemption to no more than 3,000 horsepower, 
in the aggregate). Oregon also narrowed when emissions from oil/water 
separators in effluent treatment systems may be considered 
categorically insignificant. We note that Oregon did create a new 
category of insignificant emissions--fuel burning equipment brought on 
site for six months or less for construction, maintenance, or similar 
purposes, provided the equipment performs the same function as the 
permanent equipment, and is operated within the source's existing plant 
site emission limit. Importantly, however, insignificant activity 
emissions must be included in determining whether a source is a 
``federal major source'' (OAR 340-200-0020(66)) or a ``major 
modification'' (OAR 340-224-0025(2)(a)(B)) subject to federal major new 
source review (federal major NSR).\1\ In addition, as specified in OAR 
340-200-0020(23), categorically insignificant activities must still 
comply with all applicable requirements.
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    \1\ This includes both the prevention of significant 
deterioration (PSD) new source review permitting program that 
applies in attainment and unclassifiable areas (40 CFR 51.166) and 
the nonattainment major source new source review permitting program 
that applies in nonattainment areas (40 CFR 51.165).
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    Oregon revised the definition of ``modification,'' at OAR 340-200-
0020(93), to differentiate it from the terms ``major modification,'' 
``permit modification,'' and ``title I modification,'' and to make 
clear that it applies to a change in a portion of a source, as well as 
a source in its entirety. The state also simplified the definition of 
``ozone precursor'' at OAR 340-200-0020(107) to remove redundant 
language pointing to the reference method for measuring volatile 
organic compounds (VOCs). Oregon made the same type of change to the 
definition of ``particulate matter'' at OAR 340-200-0020(110). For 
consistency, at OAR 340-200-0020(119) and (120), the short-hand terms 
for coarse and fine particulate matter, ``PM10'' and 
``PM2.5,'' were updated to reference the test method for 
measuring each pollutant. The definition of ``volatile organic 
compounds'' or ``VOC,'' at OAR 340-200-0020(190), was updated to take 
into account changes to the EPA's definition of VOC in the Code of 
Federal Regulations (CFR) at 40 CFR 51.100(s).
    We have evaluated these changes, and the additional changes to 
definitions discussed in Sections B through X below, and propose to 
find that they are consistent with Clean Air Act (CAA) requirements and 
the EPA's implementing regulations. We therefore propose to approve the 
revised and added definitions into the Oregon SIP.
LRAPA Jurisdiction
    A key aspect of the submitted revisions relates to jurisdiction. 
Oregon added new applicability language to Division 200, and throughout 
the air quality rules, to address the applicability of state rules in 
Lane County, the authority of the Lane Regional Air Protection Agency 
(LRAPA) to implement and enforce state rules in the county, and the 
authority of LRAPA to adopt local rules. The changes clarify that the 
ODEQ administers its rules in all areas, except where the Oregon 
Environmental Quality Commission (EQC) has designated the LRAPA to have 
primary jurisdiction in Lane County. The revisions also make clear that 
the LRAPA is authorized to implement state rules within Lane County, 
and may promulgate a local rule in lieu of a state rule provided: (1) 
It is as stringent as the state rule; and (2) it has been submitted to 
and approved by the EQC. We propose to approve the delegation of 
authority language in Division 200, and in all other divisions, because 
it is consistent with CAA section 110(a)(2)(E) requirements for state 
and local air agencies.
    We note that the state also submitted the ODEQ-LRAPA Stringency 
Analysis and Directive, comparing the Oregon state rule revisions to 
the corollary rules generally applicable in Lane County. The analysis 
identifies which of the revised state rules are more stringent, and 
directs the LRAPA to implement them, until such time as the LRAPA 
revises its own rules to be at least as strict. Please see Section IV 
below for a listing of the submitted rule revisions that we propose to 
approve as also applying in Lane County. The ODEQ-LRAPA Stringency 
Analysis and Directive is in Attachment B of the submission, and may be 
found in the docket for this action.
Other Provisions
    The submission also includes changes to the generally applicable 
sections in Division 200. Oregon submitted changes to OAR 340-200-0030 
to clarify that woodstove emissions are regulated, and may also be used 
to create emissions reduction credits. In addition, Oregon added a 
general rule section at OAR 340-200-0035, listing updated versions of 
key reference materials for air quality requirements. We propose to 
approve and incorporate by reference these changes.
    We note that this division contains rules on conflicts of interests 
at OAR 340-200-0100, 0110, and 0120. These rules were not substantively 
changed in the submittal and remain consistent with the CAA 
requirements for such rules at CAA sections 110(a)(2)(E) and 128. We 
propose to approve, but not incorporate by reference, OAR 340-200-0100, 
0110, and 0120, to avoid the potential for confusion or potential 
conflict with the EPA's independent authorities. We note that, 
consistent with our 2003 action, we are not approving OAR 340-200-0050 
because any compliance schedule established by Oregon under this 
provision must be submitted to, and approved by EPA, before it will be 
federally-enforceable or change the requirements of the EPA-approved 
SIP. 40 CFR 51.102(a)(2) and (c) and 260; 68 FR 2891, 2894 (Jan. 22, 
2003).

B. Division 202: Ambient Air Quality Standards and PSD Increments

    Division 202 contains Oregon's ambient air quality standards and 
Prevention of Significant Deterioration (PSD) increments. Oregon 
revised Division 202 by removing obsolete definitions and moving 
definitions used in more than one division to the general definitions 
in Division 200. At OAR 340-202-0050, Oregon added language expressly 
stating that no source may cause or contribute to a new violation of an 
ambient air quality standard or a PSD increment, even if the single 
source impact is less than the significant impact level. Oregon made 
this change to address a court decision vacating and remanding 
regulatory text for the PM2.5 significant impact level. 
Please see Section L below for a more detailed discussion of the basis 
for our determination that this change, along with other related 
changes, adequately addresses the court decision.
    At OAR 340-202-0210, the specific PSD increments were moved from a 
table to the text of the rule for readability. Oregon also clarified 
that PSD increments are compared to

[[Page 14657]]

aggregate increases in pollution concentrations from the new or 
modified source, over the baseline concentration. The state moved 
ambient air quality thresholds for pollutants from Division 224 to this 
division, to centralize ambient standards and thresholds. Finally, 
Oregon consolidated requirements for areas subject to an approved 
maintenance plan, moving ambient standards and thresholds from Division 
224 into a new section, at OAR 340-202-0225. We propose to approve the 
submitted revisions to Division 202 as being consistent with CAA 
requirements.

C. Division 204: Designation of Air Quality Areas

    This division contains provisions for the designation of air 
quality areas in Oregon. In the submission, the state removed a 
reference to ``Indian Governing Bodies'' at OAR 340-204-0060 because 
the ODEQ does not have authority or jurisdiction to regulate them. 
Oregon also replaced an expired oxygenated gasoline requirement at OAR 
340-204-0090 with an updated reference to the applicable maintenance 
plan and its associated provisions.
    A significant change in this division is the introduction of three 
new concepts: ``sustainment areas,'' ``reattainment areas,'' and 
``priority'' sources. See OAR 340-204-0300 through 0320. Both 
sustainment and reattainment areas are new, state-level designations 
designed to add to federal requirements. Oregon has implemented a 
state-level designation in the past--specifically, the maintenance area 
designation. Now, Oregon has developed two new designations intended to 
help areas address air quality problems by further regulating emission 
increases from major and minor sources.
    To designate an area as sustainment or reattainment, the ODEQ will 
undertake the same process as used in the past to designate a state 
maintenance area. The process includes public notice, a rule change, 
and approval by the EQC. Oregon asserts that the new designations and 
associated requirements are intended to help solve air quality issues, 
and do not change attainment planning requirements or federal 
requirements for major stationary sources.
    The sustainment area designation at OAR 340-204-0300 is designed to 
apply to an area where monitored values exceed, or have the potential 
to exceed, ambient air quality standards, but has not been formally 
designated nonattainment by the EPA.\2\ To construct or modify a major 
or minor source in a sustainment area, the owner or operator may need 
to offset new emissions with reductions from other sources, including 
the option of targeting ``priority'' sources, in that area. Priority 
sources are defined as sources causing or contributing to elevated 
emissions levels in the area. This is determined using local airshed 
information, such as emissions inventories and modeling results. A new 
major or minor stationary source seeking to construct in a sustainment 
area may obtain more favorable offsets from priority sources.
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    \2\ As codified at 40 CFR part 81.
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    The reattainment area designation is designed to apply to an area 
that is formally designated nonattainment by the EPA, has an EPA-
approved attainment plan, and also has three years of quality-assured/
quality-controlled monitoring data showing the area is attaining the 
relevant standard. See OAR 340-204-0310. When an area has met 
attainment planning requirements and has attained the standard, the CAA 
requires that a state submit, and the EPA approve, a maintenance plan 
for the next ten years. The state may then request that the EPA 
redesignate the area to attainment. In the interim, Oregon may 
designate the area a reattainment area. The Oregon rules requires that 
all elements of the area's attainment plan continue to apply with a 
reattainment designation. However, minor sources will be subject to 
less stringent state new source review permitting requirements--unless 
the ODEQ has specifically identified a source as a significant 
contributor to air quality problems in the area, or has controlled the 
source and relied on the controls as part of the attainment plan. The 
federal requirements for redesignation remain in place and are 
unchanged.
    We propose to approve the revisions to Division 204 because the 
added rules for state-level designations are consistent with CAA 
requirements and the EPA's implementing regulations for attainment 
planning and major source pre-construction permitting. The changes to 
Oregon's major and minor source permitting program--and our evaluation 
of those changes--are discussed in detail in Section L below.

D. Division 206: Air Pollution Emergencies

    This division establishes criteria for identifying and declaring 
air pollution episodes at levels below the levels of significant harm. 
Oregon submitted minor changes to this division, such as updating 
references to the outdated total suspended particulate matter standard, 
and moving information from four tables into regulatory text. We 
propose to approve these revisions.

E. Division 208: Visible Emissions and Nuisance Requirements

    Division 208 contains provisions regulating visible emissions, 
odor, nuisance, and fugitive emissions from sources. Oregon made 
substantive changes to the visible emission standards at OAR 340-208-
0100 through 0110, supported by a demonstration of why the state 
believes the changes continue to protect air quality. For all point 
sources, the state changed visible emission standards from an aggregate 
exception of three minutes in a 60-minute period to a six-minute block 
average, aligning the form of and test method for Oregon's visible 
emission standards with federal New Source Performance Standards 
(NSPS). At the same time, Oregon made visible emission standards 
applicable to each individual stack or emission point, to preclude 
averaging across the source.
    Oregon also made changes to phase out less stringent visible 
emission limits granted to certain older facilities in operation before 
1970. These sources were required to meet a 40% visible emission limit. 
However, starting in 2020, these sources will be required to meet the 
state's standard 20% visible emissions limit. Wood-fired boilers 
constructed or installed before 1970, and not since modified, also will 
be held to the tighter 20% visible emissions limit starting in 2020, 
except for certain, limited situations.
    Oregon asserted in its SIP submittal that a visible emissions 
standard based on a six-minute average is no more or less stringent 
than a standard based on an aggregate exception of three minutes in any 
hour. Oregon argued that, theoretically, either basis could be more 
stringent than the other, but practically, sources do not typically 
have intermittent puffs of smoke. Oregon also claimed that changing to 
a six-minute average is appropriate because a reference compliance 
method has not been developed for the three-minute standard; EPA Method 
9 results are also reported as six-minute averages; and using a three-
minute standard results in additional costs for sources that also 
monitor visible emissions with continuous opacity monitoring systems 
(COMS).
    Many COMS are designed for six-minute averages, and must be 
modified to record and report data for a three-minute standard. Oregon 
stated in the

[[Page 14658]]

submittal that compliance with a six-minute average can be determined 
with 24 readings (six-minute observation period), while, compliance 
with a three-minute standard may require as many as 240 readings (60-
minute observation period).
    We have evaluated the visible emissions rule changes and Oregon's 
justification for the changes. We propose to approve the revised 
version of OAR 340-208-0110 and the removal of OAR 340-208-0100 because 
we agree that the changes will streamline visible emissions and related 
testing and monitoring requirements for sources, impose more stringent 
requirements on certain older sources, and are, overall, at least as 
protective of the ambient air quality standards as the existing SIP 
requirements.
    The final changes made to this division revise fugitive emission 
requirements at OAR 340-208-0200 through 0210. The revised rules 
require sources to take reasonable precautions to prevent fugitive 
emissions, and may require a fugitive emissions control plan to prevent 
visible emissions from leaving a facility property for more than 18 
seconds in a six-minute period. Compliance is based on EPA Method 22, 
Visual Determination of Fugitive Emissions from Material Sources and 
Smoke Emissions from Flares. Oregon also replaced the specific 
references to ``asphalt'' and ``oil'' in the lists of dust suppressants 
and control measures with the term ``other suitable chemicals,'' to 
discourage the use of oil and asphalt as dust suppressants.
    We propose to approve the revised version of OAR 340-208-0210 and 
the repeal of OAR 340-208-0200 because we have determined that the 
fugitive emissions rule changes are consistent with CAA requirements 
and are expected to improve the effectiveness of controls and 
compliance with emission limits.

F. Division 209: Public Participation

    Division 209 governs public participation in the review of proposed 
permit actions. Oregon revised this division to modernize and clarify 
public notice requirements. The Oregon SIP provides four different 
levels of public process, depending on the type of permitting action, 
with Category I having the least amount of public notice and 
opportunities for public participation and Category IV having the most. 
Most new source review permitting actions are subject to category III, 
for which the ODEQ provides public notice and an opportunity for a 
hearing at a reasonable time and place if requested, or if the ODEQ 
otherwise determines a public hearing is necessary. For the state's 
category IV public process, which applies to Major NSR permitting 
actions, the ODEQ provides an informational meeting that occurs before 
issuing a draft permit for public review and comment. The ODEQ has 
revised the requirements for informational meetings to provide at least 
a 14-day public notice, prior to the scheduled informational meeting. 
The revisions also make clear that although the ODEQ accepts, and will 
consider, comments from the public during the informational meeting, 
the ODEQ does not maintain an official record of the informational 
meeting, or respond in writing to comments provided at the 
informational meeting.
    Oregon also revised this division to address permitting in new 
state-designated sustainment and reattainment areas, added email 
notification as an option, and specified where the public comment 
records would be made available. We note that revisions to the hearing 
procedures in OAR 340-209-0070 were reorganized, moving the notice and 
comment requirements for informational meetings to OAR 340-209-0030.
    We have concluded that the submitted revisions to Oregon's public 
participation rules remain consistent with the CAA and federal 
requirements for public notice of new source review actions in 40 CFR 
51.161 Public availability of information, 40 CFR 51.165 Permit 
requirements, and 40 CFR 51.166 Prevention of significant deterioration 
of air quality, and we propose to approve them. We also propose to 
approve the hearing procedures, but not incorporate them by reference, 
to avoid confusion or potential conflict with the EPA's independent 
authorities.

G. Division 210: Stationary Source Notification Requirements

    Division 210 contains a registration program for sources not 
subject to one of Oregon's operating permit programs, as well as some 
of the requirements for the construction and modification of sources. 
In OAR 340-210-0010, Oregon broadened the applicability of this 
division so that it applies to ``air contaminant sources'' and to 
``modifications of existing portable sources that are required to have 
permits under OAR 340 division 216''--in addition to stationary 
sources. Oregon also revised source registration requirements at OAR 
340-210-0100 to specify in more detail the information an owner or 
operator must submit to register and re-register. In addition, at OAR 
340-210-0205, Oregon made changes to clarify when a Notice of 
Construction application is required--with certain exceptions the state 
has specifically listed.
    Oregon revised construction approval and approval to operate 
provisions at OAR 340-210-0240 and 0250 to spell out when sources may 
proceed with construction or modification, and that construction 
approval does not mean approval to operate the source, unless the 
source is not required to obtain an ACDP under Division 216.
    We are proposing to approve the revisions to Division 210 because 
we have determined they are consistent with CAA requirements, and 
correct or clarify existing source notification requirements, to help 
ensure that changes to sources go through the appropriate approval 
process.

H. Division 212: Stationary Source Testing and Monitoring

    This division contains general requirements for source testing and 
monitoring. Most of the revisions to this division were clarifications 
or updates. For example, Oregon revised Division 212 to clarify that 
the term ``stationary source'' in this division includes portable 
sources that require permits under Division 216. This change is 
consistent with the term as used in other divisions. Oregon also made 
clear that, with respect to stack height and dispersion technique 
requirements, the procedures referenced in 40 CFR 51.164 are the major 
and minor NSR review procedures used in Oregon, as applicable.
    OAR 340-212-0140 of this division sets forth test methods, and 
requires that sampling, testing, or measurements performed pursuant to 
Division 212 conform to the methods in Oregon's Source Sampling Manual, 
Volumes I and II, and Oregon's Continuous Monitoring Manual. The 
manuals, revised as of 2015, have been submitted for approval. As 
discussed below in Section X, we have concluded that the revised 
manuals are consistent with the EPA's monitoring requirements for 
criteria pollutants and we propose to approve them for the purpose of 
the limits approved into the SIP.
    A final change to this division is Oregon's request to remove rules 
that were approved into the Oregon SIP on January 22, 2003 (68 FR 
2891). The specified rules, under the compliance assurance monitoring 
section, apply to title V sources only and implement the requirements 
of 40 CFR parts 64 and 70. We agree with Oregon that these rules are 
not necessary for SIP approval under section 110 of title I of the CAA, 
because

[[Page 14659]]

the rules implement provisions of title V. Therefore, we propose to 
approve Oregon's request to remove OAR 340-212-0200 through 0280 from 
the federally-approved Oregon SIP.

I. Division 214: Stationary Source Reporting Requirements

    This division contains Oregon's provisions for reporting and 
recordkeeping, information requests (CAA section 114 authority), 
credible evidence, business confidentiality, emissions statements, and 
excess emissions. Oregon made substantive changes to several sections 
of this division. First, at OAR 340-214-0010, Oregon changed the 
definition of ``large source'' to align with a recent court decision on 
the regulation of GHG emissions from new and modified major stationary 
sources in attainment and unclassifiable areas, in addition to title V 
sources. Please see our discussion at Section L, below. Oregon also 
removed from the definition of ``large source,'' those sources subject 
to a National Emission Standard for Hazardous Air Pollutants (NESHAP). 
NESHAP reporting requirements are separate and independent of the SIP 
and CAA section 110 criteria pollutant requirements, and we propose to 
approve the revision.
    Oregon revised OAR 340-214-0100 of this division to clarify that 
stationary sources include portable sources required to have ACDPs 
under Division 216. In addition, at OAR 340-214-0114(5), starting on 
July 1, 2015, owners and operators of specific sources must retain 
records of all required monitoring data and supporting information for 
five years. Oregon also revised the section on disclosure of 
information at OAR 340-214-0130, to spell out that emissions data 
cannot be exempted from disclosure as a trade secret. Under OAR 340-
214-0200, with respect to emission statements for VOC and 
NOX sources, Oregon clarified that ``actual emissions 
include, but are not limited, to routine process emissions, fugitive 
emissions, and excess emissions from maintenance, startups and 
shutdowns, equipment malfunction, and other activities.'' We propose to 
approve these revisions because they are consistent with CAA 
requirements.
    Oregon made several revisions to the excess emissions and emergency 
provision requirements in Division 214, at OAR 340-214-0300 through 
0360, that are currently in the SIP, and these revisions are included 
in the submittal that is the subject of this proposed action. First, in 
OAR 340-214-0300, the state clarified that ``emissions in excess of 
applicable standards are not excess emissions if the standard is in an 
NSPS or NESHAP and the NSPS or NESHAP exempts startups, shutdowns and 
malfunctions as defined in the applicable NSPS or NESHAP.'' By its 
terms, this provision only applies to standards in NSPS or NESHAPs, and 
Oregon's incorporation by reference of the federal NSPS and NESHAP 
standards are not included in the SIP. Because this addition relates 
solely to standards that are not in the SIP, the EPA is not approving 
this provision. The state also expanded the prohibition on planned 
startups, shutdowns, and scheduled maintenance--that may result in 
excess emissions during declared air quality alerts, warning or 
emergencies, or during times when residential wood burning is curtailed 
in PM10 nonattainment areas--to include sources in 
PM2.5 nonattainment areas.
    In addition, Oregon made changes to a provision in its SIP that 
contains criteria for determining whether Oregon will take an 
enforcement action for excess emissions (OAR 340-214-0350). In the 
context of the EPA's recent ``SSM SIP Action of 2015,'' the EPA 
evaluated the enforcement discretion provision of OAR 340-214-0350 (re-
codified from OAR 340-028-1450) and found it to be consistent with CAA 
requirements and with the EPA's SSM policy as it applies to SIPs.\3\ 
The EPA's SSM SIP Action of 2015 responded to a petition from the 
Sierra Club requesting that the EPA address concerns about specific 
provisions approved into 39 state SIPs. Sierra Club's petition alleged 
that specific provisions in these states' SIPs were inconsistent with 
the CAA. With respect to Oregon's SIP, the petitioner objected to OAR 
340-028-1450 (recodified as OAR 340-214-0350) which specifies criteria 
to be considered by Oregon in determining whether to pursue enforcement 
action for excess emissions.
---------------------------------------------------------------------------

    \3\ State Implementation Plans: Response to Petition for 
Rulemaking; Restatement and Update of EPA's [Startup, Shutdown and 
Malfunction] SSM Policy Applicable to SIPs; Findings of Substantial 
Inadequacy; and SIP Calls to Amend Provisions Applying to Excess 
Emissions During Periods of Startup, Shutdown and Malfunction: Final 
Rule.'' (June 12, 2015, 80 FR 33839).
---------------------------------------------------------------------------

    In the SSM SIP Action of 2015, we noted that Oregon's provision 
provides that ``[i]n determining whether to take enforcement action for 
excess emissions, DEQ considers, based upon information submitted by 
the owner or operator,'' a list of factors. As discussed in the SSM SIP 
Action of 2015, the EPA has interpreted the CAA to allow states to 
elect to have SIP provisions that pertain to the exercise of 
enforcement discretion by state personnel. See 80 FR 33839, 33980. We 
explained that the provision cited by the petitioners--OAR 340-028-1450 
(recodified as OAR 340-214-0350)--is plainly a statement of enforcement 
discretion, delineating factors to be considered by the ODEQ in 
determining whether to pursue state enforcement for violations of the 
applicable SIP emission limits due to excess emissions. The EPA further 
concluded that there was no language in this Oregon regulation 
suggesting that Oregon's determination to forgo enforcement by the 
state against a source would in any way prevent the EPA or the public 
from demonstrating that violations occurred and taking enforcement 
action. The EPA therefore concluded that Oregon's regulation was 
consistent with the requirements of the CAA and denied the petitioner's 
request to require Oregon to revise its SIP provision. See 80 FR 33839, 
33973 (final action); 78 FR 12459, 12537 (February 22, 2013) (proposed 
action).
    In the submittal that is the subject of this proposed action, 
Oregon has added to OAR 340-214-0350 two criteria that the ODEQ 
considers in determining whether to take enforcement action: (1) 
Whether any federal NSPS or NESHAP apply to the source in question and 
whether the excess emission event caused a violation of the federal 
standard,\4\ and (2) whether the excess emission event was due to an 
``emergency.'' \5\ Because OAR 340-214-0350 is a true enforcement 
discretion provision, rather than an affirmative defense, the addition 
of these criteria does not change the EPA's recent conclusion that this 
provision is approvable, consistent with EPA guidance in the SSM SIP 
Action of 2015 and CAA requirements for SIP provisions.
---------------------------------------------------------------------------

    \4\ Unlike the provision addressing NSPS and NESHAP added to OAR 
340-214-0300 above, which by its terms applies only to NSPS and 
NESHAP, which are not part of the SIP, the provision here is not 
limited to NSPS and NESHAP standards. For example, a SIP provision 
and an NSPS could each have an opacity limit of 20% that applies to 
the same emission unit at a facility. The fact that the NSPS limit 
does not apply during startup of the emission unit could be a 
relevant factor for Oregon to consider in determining whether to 
take an enforcement action for emissions in excess of the SIP 
opacity limit during startup.
    \5\ ``Emergency'' is defined as any situation arising from 
sudden and reasonably unforeseen events beyond the control of the 
owner or operator, including acts of God, which situation requires 
immediate corrective action to restore normal operation, and that 
causes the source to exceed a technology-based emission limit under 
the permit, due to unavoidable increases in emissions attributable 
to the emergency. An emergency does not include noncompliance to the 
extent caused by improperly designed equipment, lack of preventative 
maintenance, careless or improper operation, or operator error. See 
OAR 340-200-020(50).

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

[[Page 14660]]

    Further, Oregon changed an affirmative defense provision for excess 
emissions (OAR 340-214-0360) that is in the current SIP. OAR 340-214-
0360 provides, by its title and language, an affirmative defense to 
excess emissions due to an ``emergency.'' The language in this 
provision closely follows language in regulations that govern title V 
operating permit programs, and states are currently authorized under 
the 40 CFR part 70 regulations to include this provision in title V 
permits. See 40 CFR 70.6(g).\6\ The EPA most recently approved this 
provision into the Oregon SIP on December 27, 2011 (76 FR 80747). 
Although this provision was not a subject of the SIP call, the SSM SIP 
Action of 2015 expressly concluded that affirmative defense provisions 
are inconsistent with CAA requirements for SIPs and cannot be approved. 
See 80 FR at 33852.
---------------------------------------------------------------------------

    \6\ The EPA proposed changes to federal title V regulations on 
June 14, 2016 (81 FR 38645). The proposed changes would remove this 
affirmative defense from the title V rules. If finalized, states 
would be required to make changes to their title V programs, where 
applicable, to conform to the revised federal title V regulations.
---------------------------------------------------------------------------

    Oregon revised OAR 340-214-0360 so that it provides an affirmative 
defense available only in penalty actions due to noncompliance with 
technology-based emission limits in title V operating permits; as 
revised, the affirmative defense would no longer be available for 
violations of SIP requirements. Oregon's revision makes OAR 340-214-
0360 consistent with current requirements for title V operating permit 
programs. Oregon has not submitted the revised version of section 0360 
for approval into the SIP and instead, as part of the current 
submittal, has requested that the EPA remove the old version of OAR 
340-214-0360 from the SIP. The removal of this affirmative defense 
provision from the SIP is consistent with EPA guidance in the SSM SIP 
Call and CAA requirements for SIP provisions. We are therefore 
proposing to approve the removal of this title V affirmative defense 
provision from the Oregon SIP.
    We note that Oregon also repealed the sulfur dioxide emission 
inventory requirements at OAR 340-214-0400 through 0430. These 
provisions are not part of the federally-approved Oregon SIP. These 
provisions were repealed as a matter of state law because they were 
replaced with more stringent sulfur dioxide limits established as a 
part of the state's regional haze plan (July 5, 2011; 76 FR 38997).

J. Division 216: Air Contaminant Discharge Permits

    Oregon's Air Contaminant Discharge Permit (ACDP) program is both 
Oregon's federally-enforceable non-title V state operating permit 
program, and also the administrative mechanism used to implement the 
notice of construction and new source review programs. There are six 
types of ACDPs under Oregon's rules: Construction, General, Short Term 
Activity, Basic, Simple, and Standard. The types of ACDPs have not 
changed, but the ODEQ has made some changes and clarifications to the 
criteria and requirements for the various ACDPs. Oregon also revised 
application requirements to set application renewal deadlines, and to 
clarify the required contents of applications.
    The applicability section at OAR 340-216-0020 references the table 
of applicability criteria for the various types of permits in OAR 340-
216-8010. The associated fees are listed at OAR 340-216-8020. Oregon 
made clarifying changes throughout the table in OAR 340-216-8010, and 
made some revisions to the type of ACDP (Basic, General, Simple, or 
Standard) each source category is required to obtain prior to 
construction and operation. Overall, Oregon slightly expanded the list 
of sources required to obtain Basic, General, Simple, or Standard 
ACDPs, with one exception. Oregon removed the requirement that GHG-only 
sources obtain a Standard ACDP, and pay the associated permitting fees, 
consistent with the federal court decision described below in Section 
L.
    Oregon also made revisions, mostly clarifying, to the requirements 
for applying for and issuing certain types of permits, as well as the 
contents of the various permits. For Construction ACDPs at OAR 340-216-
0052, Oregon added a qualifier to the rule that construction commence 
within 18 months after the permit is issued. This deadline now applies 
only if a source is subject to federal major NSR and certain state 
major NSR permitting (discussed in more detail below). Oregon also 
added language to the public notice requirements for a modified 
Construction ACDP, making clear when public notice as a Category I 
permit action is appropriate, as opposed to a Category II permit action 
under OAR 340 Division 209. Oregon spelled out that, although the 
construction permit itself expires, the requirements remain in effect 
and must be added to the subsequent operating permit (ACDP or Title V 
operating permit). See OAR 340-216-0082.
    General ACDP requirements at OAR 340-216-0060 were updated to refer 
to the appropriate public notice procedures, reference the fee class 
for specific source categories, and confirm the procedures the ODEQ 
will use to rescind a source's General ACDP if the source no longer 
qualifies and must obtain a Simple or Standard ACDP instead. Oregon 
also changed the rule to make clear that the ODEQ may rescind an 
individual source's assignment to a General Permit. When the ODEQ 
notifies the source that the department intends to rescind the permit, 
the source has 60 days to submit an application for a Simple or 
Standard ACDP. Oregon also revised General ACDP Attachments to clarify 
public notice requirements and fees.
    For Simple ACDPs at OAR 340-216-0064, it is now clear that the ODEQ 
may determine a source ineligible for a Simple ACDP with generic 
emission limits, and instead, require the source obtain a Standard ACDP 
with source-specific emission limits, as necessary. Oregon has also 
clarified the public notice requirements and fees for Simple ACDPs and 
removed redundant requirements from the Simple ACDP section that are 
also in the applicability and jurisdiction section.
    The Standard ACDP requirements at OAR 340-216-0066 were updated to 
lay out the different application requirements for sources seeking this 
type of permit when they are subject to federal major versus minor NSR. 
Oregon also changed this section to allow sources with multiple 
activities or processes at a single site, covered by more than one 
General ACDP or that has multiple processes, to obtain a Standard ACDP.
    With respect to processing permits, Oregon's provision at OAR 340-
216-0082 now expressly provide that sources with expired ACDP permits 
may continue operating under the expired permit if they have submitted 
a timely and complete renewal application. Sources may also request a 
contested case hearing, if the ODEQ revokes a permit or denies a permit 
renewal. The ODEQ has clarified in a written supplement that 
department-initiated modifications at OAR 340-216-0084 follow the 
public notice procedures for the relevant ACDP permit type spelled out 
in Division 209. Based on the evaluation above and this clarification 
from the ODEQ, we propose to approve the revisions to Division 216.

K. Division 222: Stationary Source Plant Site Emission Limits

    This division contains the Oregon program for managing airshed 
capacity

[[Page 14661]]

through a Plant Site Emission Limit (PSEL). PSELs are used to protect 
ambient air quality standards, prevent significant deterioration of air 
quality, and to ensure protection of visibility. Establishing such a 
limit is a mandatory step in the Oregon permitting process. A PSEL is 
designed to be set at the actual baseline emissions from a source plus 
approved emissions increases and minus required emissions reductions. 
This design is intended to maintain a more realistic emissions 
inventory. Oregon uses a fixed baseline year of 1977 or 1978 (or a 
prior year if more representative of normal operation) and factors in 
all approved emissions increases and required emissions decreases since 
baseline, to set the allowable emissions in the PSEL. Increases and 
decreases since the baseline year do not affect the baseline, but are 
included in the difference between baseline and allowable emissions.
    ``Netting basis'' is a concept in Oregon's program that defines 
both the baseline emissions from which increases are measured--to 
determine if changes are subject to review--as well as the process for 
re-establishing the baseline, after changes have been through the new 
source review permitting process.
    As noted above, Oregon's PSEL program is used, in part, to 
implement NSR permitting. For major NSR, if a PSEL is calculated at a 
level greater than an established significant emission rate (SER) over 
the baseline actual emission rate, an evaluation of the air quality 
impact and major NSR permitting are required. If not, the PSEL is set 
without further review (a construction permit may also be required). 
For minor NSR (State NSR), a similar calculation is conducted. If the 
difference is greater than the SER, an air quality analysis is required 
to evaluate whether ambient air quality standards and increments are 
protected. The air quality analysis results may require the source to 
reduce the airshed impact and/or comply with a tighter emission limit.
    Oregon submitted a number of changes to the PSEL requirements in 
this division. Many of the changes are organizational, centralizing 
requirements related to PSELs in Division 222. We propose to approve 
the organizational changes. Other submitted changes are substantive. 
Oregon revised the criteria for establishing PSELs at OAR 340-222-0035 
through 0090 by consolidating requirements from other sections into 
these provisions, and revising them to take into account the 
differentiated major and State NSR requirements. Oregon also updated 
the source-specific annual PSEL provision, at OAR 340-222-0041, to 
account for PM2.5 and major and State NSR requirements. We 
note that the current SIP-approved rule includes provisions at OAR 340-
222-0041(3)(b) for PSEL increases that were not subject to New Source 
Review. The revised rule revokes those provisions and instead makes 
these PSEL increases subject to the new State New Source Review 
requirements in Division 224 (see new applicability provision in OAR 
340-224-0010(2)(b)(B)). The comprehensive requirements for approval of 
such PSEL increases in sustainment, nonattainment, reattainment, 
maintenance, and attainment/unclassifiable areas are as stringent as 
the current requirements in OAR 340-222-0041(b)(A) through (D).
    Oregon also revised the short-term PSEL requirements at OAR 340-
222-0042 to spell out the process a source must follow to request an 
increase in a short-term PSEL--and when that source must obtain 
offsets, or an allocation, from an available growth allowance in the 
area.
    At OAR 340-222-0046, Oregon clarified the process for setting the 
initial netting basis for PM2.5 and how potential increases 
are limited. The state also made changes to spell out how a source's 
netting basis may be reduced--when a rule, order or permit condition 
requires the reductions--and how unassigned emissions and emissions 
reduction credits are to be addressed. In addition, Oregon clarified 
that a source may retain a netting basis if that source relocates to a 
different site, as opposed to an adjacent site. However, it is only 
allowed if the ODEQ determines the different site is within or affects 
the same airshed, and that the time span between operation at the old 
site and new sites is less than six months.
    At OAR 340-222-0048, Oregon consolidated baseline period and 
baseline emission rate provisions, and indicated when a baseline 
emission rate may be recalculated--limited to circumstances when more 
accurate or reliable emission factor information becomes available or 
when regulatory changes require that additional emissions units be 
addressed. Changes were also made to OAR 340-222-0051, which addresses 
actual emissions, and how to appropriately calculate the mass emissions 
of a pollutant from an emissions source during a specified time period. 
The state revised this provision to account for the changes in the 
program that differentiate major NSR from State NSR.
    We note that Oregon also clarified OAR 340-222-0055, which 
establishes how unassigned emissions are to be treated. The rule was 
revised to state that a source may not use emissions that are removed 
from the netting basis--including emission reductions required by rule, 
order or permit condition--for netting any future permit actions.
    Oregon also revised OAR 340-222-0060, applicable to sources of 
hazardous air pollutants, and submitted it for approval. However, the 
provision is not appropriate for SIP approval because it is related to 
CAA section 112 and hazardous air pollutants, not CAA section 110 and 
the criteria pollutants. Oregon also updated OAR 340-222-0090, which 
addresses the impact on PSEL calculations and permitting requirements 
when sources combine, split, and change primary Standard Industrial 
Code. The changes make clear that sources must qualify to combine, and 
that it will impact the netting basis and SER, and trigger new source 
review and recordkeeping requirements, if applicable.
    With the exception noted below, we are proposing to approve the 
submitted changes to Division 222 because we believe the revisions to 
the PSEL provisions are intended to clarify and strengthen the rules. 
We are not approving OAR 340-222-0060 because it is related to CAA 
section 112 and hazardous air pollutants, not CAA section 110 and the 
criteria pollutants.

L. Division 224: New Source Review

    Parts C and D of title I of the CAA, 42 U.S.C. 7470-7515, set forth 
preconstruction review and permitting program requirements that apply 
to new and modified major stationary sources of air pollutants, known 
as major New Source Review (major NSR). The CAA major NSR programs 
include a combination of air quality planning and air pollution control 
technology program requirements. States adopt major NSR programs as 
part of their SIP. Part C is the Prevention of Significant 
Deterioration (PSD) program, which applies in areas that meet the NAAQS 
(attainment areas), as well as in areas for which there is insufficient 
information to determine whether the area meets the NAAQS 
(unclassifiable areas). Part D is the Nonattainment New Source Review 
(major nonattainment NSR) program, which applies in areas that are not 
in attainment of the NAAQS (nonattainment areas). The EPA regulations 
for SIPs implementing these programs are contained in 40 CFR 51.165 and 
51.166, and appendix S to part 51. As discussed above, regulations 
addressing the EPA's minor new source review (NSR) requirements are set 
forth at 40 CFR 51.160 through 164. States

[[Page 14662]]

generally have more flexibility in designing minor NSR programs. Minor 
NSR programs, however, must still ensure that emissions from the 
construction or modification of a facility, building, structure, or 
installation (or any combination thereof) will not interfere with 
attainment and maintenance of the NAAQS, or violate an applicable 
portion of a control strategy approved into the SIP.
    Oregon's major NSR program has long differed from the federal major 
NSR programs in several respects. Oregon's program does not subject the 
same sources and modifications to major NSR as would the EPA's rules. 
Oregon's program has had lower major source thresholds for sources in 
nonattainment and maintenance areas. The program also requires fugitive 
emissions to be included in applicability determinations for all new 
major sources and modifications to existing major sources. However, 
Oregon also utilizes a PSEL approach to defining ``major'' 
modifications, rather than the contemporaneous net emissions increase 
approach used in the EPA's main, non-PAL major NSR program. The EPA has 
previously determined that, over all, Oregon's major NSR program is at 
least as stringent as the EPA's major NSR program and meets the 
requirements of 40 CFR 51.165 and 51.166. See 76 FR 80747, 80748 
(December 27, 2011) (final action); 76 FR 59090, 59094 (Sept. 23, 2011) 
(proposed action).
    Under Oregon's SIP-approved program, to which the state has made 
changes, both federal major sources and large minor sources have been 
covered by this Division. The submitted changes to Division 224 revise 
this approach and establish distinct components within Division 224, 
referred to as Major New Source Review (Oregon Major NSR--sections 0045 
through 0100) and State New Source Review (State NSR--sections 0245 
through 0270) to help clarify the requirements that apply to federal 
major sources and larger minor sources. Pre-construction review and 
permitting of other minor sources continue to be covered in Division 
210 Stationary Source Notification Requirements, Division 216 Air 
Contaminant Discharge Permits, and Division 222 Plant Site Emission 
Limits.
    As discussed above, Oregon has also created two new state 
designations. Sustainment areas are state-designated areas that are 
violating or close to violating the NAAQS but which are not formally 
designated nonattainment by the EPA. Reattainment areas are state-
designated areas that have been designated nonattainment by the EPA but 
that now have air quality data showing the area is attaining the NAAQS. 
Key changes to the Oregon Major NSR and State NSR programs are 
discussed below.
OAR 340-224-0010 Applicability, General Prohibitions, General 
Requirements, and Jurisdiction
    Oregon has narrowed the scope of sources that are subject to Oregon 
Major NSR in nonattainment and maintenance areas by increasing the 
thresholds, from the significant emission rate (SER) to the major 
source thresholds in the CAA specified for the current nonattainment 
areas in Oregon. See OAR 340-200-0020(66)(d) and OAR 340-224-0010(b). 
At the same time, Oregon's State NSR requirements under Division 224 
apply to the construction of new sources with emissions of a regulated 
air pollutant at or above the SER, as well as increases in emissions of 
a regulated pollutant from existing sources that equal or exceed the 
SER over the netting basis.
    Oregon has divided its State NSR program into two parts: Type A, 
which generally applies in nonattainment, reattainment, and maintenance 
areas, and Type B, for attainment, unclassifiable, and sustainment 
areas. Sources subject to Type A State NSR remain subject to many of 
the same requirements that apply to such sources under Oregon's current 
SIP-approved program in nonattainment \7\ and maintenance areas, 
whereas sources subject to Type B State NSR are subject to requirements 
equivalent to the minor NSR requirements under Oregon's PSEL rule at 
OAR 340-222-0041 in its current SIP.\8\ Because Oregon's changes to the 
definition of ``federal major source'' in nonattainment areas are 
consistent with the federal definition of ``major stationary source'' 
at 40 CFR 51.165 for the designated areas in Oregon, and because Oregon 
has retained most of the characteristics of the Oregon's SIP-approved 
Major NSR permitting program for Type A State NSR, the EPA is proposing 
to approve these revisions.
---------------------------------------------------------------------------

    \7\ Key changes are discussed below in the discussion of State 
NSR.
    \8\ Sources in sustainment areas subject to OAR 340-224-0245(2) 
are also subject to Type A NSR.
---------------------------------------------------------------------------

    The state also made revisions here, and in several other places in 
its rules, to be consistent with revisions to the federal PSD rules 
made in response to a Supreme Court decision \9\ regarding the 
regulation of GHGs (May 7, 2015, 80 FR 26183). Specifically, Oregon 
revised definitions and procedures in Divisions 200, 214, 216, 222 and 
224 to remove GHG-only sources from PSD applicability. Therefore, as 
required by the federal PSD program, a source is now subject to the 
Oregon Major NSR requirements for GHGs in attainment and unclassifiable 
areas only when the source is subject to Oregon Major NSR requirements 
anyway for one or more criteria pollutants. As specified in the federal 
PSD regulations, Oregon's rules continue to require that sources of 
GHGs subject to Oregon Major NSR in attainment and unclassifiable areas 
for a criteria pollutant, are also subject to Oregon Major NSR for 
GHGs.
---------------------------------------------------------------------------

    \9\ Utility Air Regulatory Group v. Environmental Protection 
Agency, 134 S.Ct. 2427 (2014).
---------------------------------------------------------------------------

    Oregon also made clear in this section that a source is subject to 
Division 224 requirements for the designated area in which the source 
is located--for each regulated pollutant, including precursors. 
Finally, Oregon spelled out that sources subject to Division 224 must 
not begin actual construction, continue construction, or operate 
without complying with the requirements of Division 224 and obtaining 
an ACDP permit authorizing construction or operation.
OAR 340-224-0025 Major Modification
    Importantly, Oregon moved the definition of ``major modification'' 
from Division 200 to Division 224, to reflect that the former 
definition was really a procedure for determining whether a major 
modification has or will occur, rather than a true definition. The 
revised definition and procedure are intended to better explain how 
emissions increases and decreases are tracked to determine whether a 
major modification has, or will, occur.
    Oregon also specified that emissions from categorically 
insignificant activities, aggregate insignificant emissions, and 
fugitive emissions must be included in determining whether a major 
modification has occurred. In addition, the state clarified that major 
modifications for ozone precursors, or PM2.5 precursors, 
also constitute major modifications for ozone and PM2.5, 
respectively. Finally, Oregon added language stating that the PSEL, 
netting basis, and emissions changes must be recalculated when more 
accurate or reliable emissions information becomes available to 
determine whether a major modification has occurred.
OAR 340-224-0030 New Source Review Procedural Requirements
    Oregon revised this section to account for differing Oregon Major 
NSR and State NSR procedures. These revisions include when the ODEQ 
will determine whether an application is complete, when a final 
determination will be made, when construction is permitted,

[[Page 14663]]

how to revise a permit and extend it, and when and how the ODEQ will 
terminate an NSR permit. With respect to the provision in the federal 
PSD regulations authorizing extensions to the 18-month construction 
time limitation in 40 CFR 52.21(r)(2) ``upon a satisfactory showing 
that an extension is justified,'' Oregon revised its extension 
provisions to be consistent with recent EPA guidance. This guidance set 
out the EPA's views on what constitutes an adequate justification for 
an extension of the 18-month timeframe under 40 CFR 52.21(r)(2) for 
commencing construction of a source that has been issued a PSD permit. 
See Memorandum from Stephen D. Page, Director of EPA's Office of Air 
Quality Planning and Standards, to Regional Air Division Directors, 
Region 1-10, entitled Guidance on Extension of Prevention of 
Significant Deterioration (PSD) Permits under 40 CFR 52.21(r)(2), dated 
January 31, 2014 (Extension Guidance). In addition, Oregon extended the 
time period for making a final determination on an Oregon Major NSR or 
Type A State NSR permit from six months to one year, to reflect the 
more complex nature of such permitting actions. The one-year time-frame 
for permit issuance is consistent with the EPA's requirements for major 
NSR permitting. See 40 CFR 52.21(q)(2).
OAR 340-224-0038 Fugitive and Secondary Emissions
    This section was moved and amended to account for State NSR 
requirements. For sources subject to Oregon Major NSR and Type A State 
NSR, fugitive emissions are included in the calculation of emission 
rates and subject to the same control requirements and analyses 
required for emissions from identifiable stacks or vents. Secondary 
emissions are not included in potential to emit calculations for Oregon 
Major NSR or Type A State NSR, but once a source is subject to Oregon 
Major NSR or Type A State NSR, secondary emissions must be considered 
in the required air quality impact analysis under Divisions 224 and 
225.
340-224-0045 to 340-224-0070 Major NSR
    Oregon has specified Oregon Major NSR requirements for each of the 
following designations: Sustainment, nonattainment, reattainment, 
maintenance, and attainment/unclassifiable.
Major NSR in Sustainment Areas
    New sources and modifications subject to Oregon Major NSR in 
sustainment areas (areas that are classified as attainment/
unclassifiable by the EPA but have air quality either violating the 
NAAQS or just below the NAAQS) must meet PSD requirements for each 
sustainment pollutant, but must also satisfy additional requirements 
for obtaining offsets and demonstrating a net air quality benefit to 
address the air quality problems in the area, as discussed in more 
detail below. Because such areas are designated as attainment/
unclassifiable by the EPA, requiring compliance with Oregon's PSD 
requirements meets federal requirements. The additional requirements 
for obtaining offsets and demonstrating a net air quality benefit go 
beyond CAA requirements for attainment/classifiable areas and are thus 
approvable.
Major NSR in Nonattainment Areas
    For new sources and modifications subject to Oregon Major NSR in 
nonattainment areas, Oregon reorganized and clarified the requirements, 
including that they apply for each pollutant for which the area is 
designated nonattainment. Lowest Achievable Emission Rate (LAER) and 
offsets continue to be required for such sources and modifications. 
Oregon's submitted revisions tighten offsets required in nonattainment 
areas (except with respect to ozone). Oregon's rules now initially 
require 1.2:1 offsets to emissions in non-ozone areas. If offsets are 
obtained from priority sources in the area, the ratio may be reduced to 
1:1, equivalent to the federal requirement in 40 CFR 51.165(a)(9)(i). 
Oregon's revisions also tighten requirements for sources seeking 
construction permit extensions, and limits extension requests to two 
18-month periods, with certain additional review and re-evaluation 
steps. We note that beyond the federal rules, Oregon's rules extend 
BACT and offset requirements to new and modified minor sources in 
nonattainment areas.
    The EPA is proposing limited, rather than full, approval of the 
Oregon Major NSR program for nonattainment areas because, although the 
submitted revisions strengthen the existing SIP-approved program, we 
cannot fully evaluate the program for the following reasons. On January 
4, 2013, the U.S. Court of Appeals for the District of Columbia, in 
Natural Resources Defense Council (NRDC) v. EPA,\10\ issued a decision 
that remanded the EPA's 2007 and 2008 rules implementing the 1997 
PM2.5 NAAQS. Relevant here, the EPA's 2008 implementation 
rule addressed by the court decision, ``Implementation of NSR Program 
for Particulate Matter Less Than 2.5 Micrometers (PM2.5)'' 
(the 2008 NSR PM2.5 Rule),\11\ promulgated NSR requirements 
in both nonattainment areas (nonattainment NSR) and attainment/
unclassifiable areas (PSD). The court concluded that the EPA had 
improperly based the implementation rule solely upon the requirements 
of part D, subpart I, of the CAA, and had failed to address the 
requirements of part D, subpart 4, which establishes additional 
provisions for particulate matter nonattainment areas. The court 
ordered the EPA to ``repromulgate these rules pursuant to subpart 4 
consistent with this opinion.'' Id. at 437.
---------------------------------------------------------------------------

    \10\ 706 F.3d 428 (D.C. Cir.).
    \11\ 73 FR 28321 (May 16, 2008).
---------------------------------------------------------------------------

    As a result of the court's decision, the EPA withdrew its guidance 
for implementing the 2006 PM2.5 standard \12\ because the 
guidance was based largely on the remanded rule promulgated to 
implement the 1997 PM2.5 standard.\13\ On June 2, 2014, the 
EPA promulgated the Identification of Nonattainment Classification and 
Deadlines for Submission of State Implementation Plan (SIP) Provisions 
for the 1997 Fine Particle (PM2.5) National Ambient Air 
Quality Standards (NAAQS) and 2006 PM2.5 NAAQS (79 FR 
31566). This rule promulgated classifications and deadlines under 
subpart 4, part D, title I of the CAA for 2006 PM2.5 
nonattainment areas, including two areas in Oregon, specifically the 
Klamath Falls and Oakridge PM2.5 nonattainment areas. On 
August 24, 2016, the EPA finalized the Fine Particulate Matter National 
Ambient Air Quality Standards: State Implementation Plan Requirements 
(81 FR 58010). The EPA has now set revised requirements for 
PM2.5 nonattainment areas, including new rules for major new 
and modified sources. The EPA also stated its intent to provide states 
with guidance regarding precursor demonstrations to supplement the new 
rules. Because these changes only recently became effective on October 
24, 2016, and the EPA's guidance is still forthcoming, we intend to 
work with Oregon to address the requirements of subpart 4 for 
PM2.5 in a separate, future action. In this action, as 
stated above, we propose a limited approval of the revisions to the 
Oregon Major NSR program in nonattainment areas as

[[Page 14664]]

strengthening the current federally-approved program.
---------------------------------------------------------------------------

    \12\ Memorandum from Stephen D. Page, Implementation Guidance 
for the 2006 24-Hour Fine Particulate (PM2.5) National 
Ambient Air Quality Standards (Mar. 2, 2012).
    \13\ Memorandum from Stephen D. Page, Withdrawal of 
Implementation Guidance for the 2006 24-Hour Fine Particle 
(PM2.5) National Ambient Air Quality Standards (Jun. 6, 
2013).
---------------------------------------------------------------------------

Major NSR in Reattainment Areas
    In reattainment areas (areas meeting the NAAQS but not yet 
redesignated to attainment), new sources and modifications subject to 
Oregon Major NSR must continue to meet all nonattainment Oregon Major 
NSR requirements for the reattainment pollutant. In addition, to ensure 
air quality does not again deteriorate, Oregon now requires that 
sources subject to Oregon Major NSR also meet other requirements for 
each reattainment pollutant. Specifically, the owner or operator of the 
source must demonstrate the source will not cause or contribute to a 
new violation of the ambient air quality standard or PSD increment by 
conducting an air quality analysis as outlined in Division 225.
Major NSR in Maintenance Areas
    In maintenance areas, as under Oregon's current federally-approved 
SIP, new sources and modifications subject to Oregon Major NSR must 
continue to comply with Oregon Major NSR requirements for attainment/
unclassifiable areas (i.e., PSD) and also conduct a demonstration or 
obtain allowances to ensure a net air quality benefit in the area. 
Rather than setting out the specific PSD requirements in this section, 
however, this section now simply references the PSD requirements at OAR 
340-224-0070.
Major NSR in Attainment/Unclassifiable Areas (PSD)
    For the construction of new sources and modifications subject to 
Oregon Major NSR in attainment or unclassifiable areas, Oregon revised 
its rules to address several court decisions impacting federal PSD 
rules. First, as discussed above, Oregon revised definitions and 
procedures in Divisions 200, 214, 216, 222 and 224 to remove GHG-only 
sources from PSD applicability. Therefore, as required under the EPA's 
federal PSD program, a source is now subject to the Oregon Major NSR 
requirements for GHGs only when the source also is subject to Oregon 
PSD requirements for one or more criteria pollutants. As required, 
Oregon's rules continue to require that sources of GHGs subject to 
Oregon's PSD rules for a criteria pollutant are also subject to PSD for 
GHGs.
    Second, Oregon revised its requirements for preconstruction 
monitoring to address another court decision and resulting revisions to 
the EPA's PSD rules. On October 20, 2010, the EPA promulgated the 2010 
PSD PM2.5 Implementation Rule revising the federal 
significant monitoring concentration (SMC) and SILs for 
PM2.5 (75 FR 64864). On January 22, 2013, the U.S. Court of 
Appeals for the District of Columbia, in Sierra Club v. EPA,\14\ issued 
a judgment that, among other things, vacated the provisions adding the 
PM2.5 SMC to the federal regulations at 40 CFR 
51.166(i)(5)(i)(c) and 52.21(i)(5)(i)(c). In its decision, the court 
held that the EPA did not have the authority to use SMCs to exempt 
permit applicants from the statutory requirement in CAA section 
165(e)(2) that ambient monitoring data for PM2.5 be included 
in all PSD permit applications. Although the PM2.5 SMC was 
not a required element, where a state program contained an SMC and 
applied it to allow new permits without requiring ambient 
PM2.5 monitoring data, the provision would be inconsistent 
with the court's opinion and CAA section 165(e)(2).
---------------------------------------------------------------------------

    \14\ 703 F.3d 458 (D.C. Cir. 2013).
---------------------------------------------------------------------------

    At the EPA's request, the decision also vacated and remanded the 
portions of the 2010 PSD PM2.5 Implementation Rule that 
revised 40 CFR 51.166 and 40 CFR 52.21 related to SILs for 
PM2.5. The EPA requested this vacatur and remand of two of 
the three provisions in the EPA regulations that contain SILs for 
PM2.5 because the wording of these two SIL provisions (40 
CFR 51.166(k)(2) and 40 CFR 52.21(k)(2)) was inconsistent with the 
explanation of when and how SILs should be used by permitting 
authorities that we provided in the preamble to the Federal Register 
publication when we promulgated these provisions. Specifically, the EPA 
erred because the language promulgated in 2010 does not provide 
permitting authorities the discretion to require a cumulative impact 
analysis notwithstanding that the source's impact is below the SIL, 
where there is information that shows the proposed source would lead to 
a violation of the NAAQS or increments. The third SIL provision (40 CFR 
51.165(b)(2)) was not vacated and remains in effect. On December 9, 
2013, the EPA removed the vacated PM2.5 SILs and SMC 
provisions from federal PSD regulations (78 FR 73698). The EPA is 
starting a rulemaking on the PM2.5 SILs to address the 
court's remand. In the meantime, we advised states to remove the 
vacated provisions from state PSD regulations.
    In response to the vacatur and remand, Oregon submitted revisions 
to several divisions, including Divisions 200, 202, 224 and 225. Oregon 
revised the PM2.5 SMC to zero, as the EPA did, to address 
this issue in the federal PSD regulations. Oregon also revised the 
definition of ``significant impact levels'' or ``SIL'' in state rules, 
removed the vacated language and added text to make clear that ``no 
source may cause or contribute to a new violation of an ambient air 
quality standard or PSD increment even if the single source impact is 
less than the significant impact level.'' We are proposing to approve 
Oregon's revisions as consistent with the court decision.
    Oregon also revised its PSD rules to address a court decision 
vacating provisions of EPA's 2011 biogenic deferral. In 2011, the EPA 
revised the definition of ``subject to regulation'' at 40 CFR 
52.21(b)(49)(ii)(a) to defer PSD permitting requirements for carbon 
dioxide (CO2) emissions from bioenergy and other biogenic 
sources for three years. See Deferral for CO2 Emissions from 
Bioenergy and Other Biogenic Sources under the Prevention of 
Significant Deterioration (PSD) and Title V Programs; Final Rule (July 
20, 2011, 76 FR 43490) (Biogenic CO2 Deferral Rule)). On 
July 12, 2013, the U.S. Court of Appeals for the District of Columbia, 
in Center for Biological Diversity v. EPA,\15\ vacated the provisions 
of the Biogenic CO2 Deferral Rule. The deferral expired on 
July 21, 2014, and by its terms is no longer in effect. The current 
definition of ``greenhouse gases or GHGs'' in Division 200 states that 
CO2 emissions from the combustion or decomposition of 
biomass is not included in the definition, except to the extent 
required by federal law. We are proposing to approve Oregon's rules as 
consistent with current federal law, under which CO2 
emissions from biogenic sources are regulated under Oregon's PSD 
program to the same extent as CO2 emissions from any other 
source.
---------------------------------------------------------------------------

    \15\ 722 F.3d 401 (D.C. Cir. 2013).
---------------------------------------------------------------------------

    In addition to revisions addressing these three court decisions, 
Oregon also eliminated language that allowed the substitution of post-
construction monitoring for preconstruction monitoring. Oregon added an 
exemption from the preconstruction ambient air monitoring requirement, 
with the ODEQ's approval, if representative or conservative background 
concentration data is available, and the source demonstrates that such 
data is adequate to determine that the source would not cause or 
contribute to a violation of an ambient air quality standard or any 
applicable PSD increment. These revisions, along with the other 
existing provisions regarding preconstruction monitoring in Oregon's 
PSD regulations,

[[Page 14665]]

are consistent with 40 CFR 51.166(m)(iii) and therefore approvable.
    Finally, Oregon added the requirement to demonstrate a net air 
quality benefit for subject sources that will have a significant impact 
on air quality in a designated area other than the area in which the 
source is located. This demonstration of net air quality benefit is 
beyond federal PSD requirements, and will be discussed in more detail 
below.
OAR 340-224-0245 to 340-224-0270, State NSR
    Division 224 now also specifies State NSR requirements for 
sustainment, nonattainment, reattainment, maintenance, and attainment/
unclassifiable areas. For sources that emit between the SER and 100 
tons per year in nonattainment and maintenance areas (Type A State NSR 
sources), Oregon has relaxed some of the requirements, as compared to 
its current SIP, that historically went beyond federal requirements. In 
nonattainment areas, if the increase in emissions from the source is 
the result of a major modification,\16\ BACT rather than LAER is now 
required. In maintenance areas, Type A State NSR sources are no longer 
required to conduct preconstruction monitoring to support the ambient 
air impact analysis for the source. In addition, in both nonattainment 
and maintenance areas, Oregon's new State NSR rules allow a reduction 
of the offset ratio if some of the offsets come from sources that are 
contributing to air quality problems in the area (which historically 
have been woodstoves). In sustainment and reattainment areas, Oregon's 
new State NSR requirements go beyond CAA requirements for minor NSR 
programs by requiring a demonstration of a net air quality benefit 
(discussed below).
---------------------------------------------------------------------------

    \16\ Oregon uses the term ``major modification'' for physical 
and operational changes that result in significant increases to both 
existing major and existing minor sources.
---------------------------------------------------------------------------

    Because BACT, LAER, pre-construction monitoring, and offsets are 
not required components of a State's SIP-approved minor NSR program, 
and because the offset requirements now provide sources with incentives 
to obtain offsets from sources found to be specifically contributing to 
air quality problems in the area, the EPA proposes to find that 
Oregon's minor NSR program continues to meet CAA requirements for 
approval.
OAR 340-224-0500 to 340-224-0540, Net Air Quality Benefit Emission 
Offsets
    Oregon moved the net air quality benefit emission offset rules from 
Division 225 to Division 224 to better consolidate new source review 
requirements. The CAA requires that, for major nonattainment NSR, the 
proposed major source or major modifications must obtain emissions 
reductions of the affected nonattainment pollutant from the same source 
or other sources in the area to offset the proposed emissions increase. 
See CAA section 173(c). Consistent with that requirement, the EPA's 
major nonattainment NSR regulations require that major sources and 
major modifications in nonattainment areas obtain emissions offsets at 
a ratio of at least 1 to 1 (1:1) from existing sources in the area to 
offset emissions from the new or modified source. 40 CFR 
51.165(a)(9)(i).
    Oregon revised the state's criteria for demonstrating a net air 
quality benefit. In addition to the incentives provided to sources 
subject to Type A State NSR in sustainment and reattainment areas to 
obtain offsets from priority sources discussed above, Oregon made an 
additional change. The state revised its rules to provide incentives 
for major sources to use priority source offsets for Oregon Major NSR 
sources in nonattainment and reattainment areas by increasing the 
required offset ratio for major sources to 1.2:1 from the current 1:1. 
If a source subject to Oregon Major NSR obtains offsets of some 
emissions increases from priority sources, the ratio may be reduced to 
no less than 1:1, the minimum offset level under the federal major 
nonattainment NSR program.
    We most recently reviewed and took action on submitted changes to 
Division 225 on December 27, 2011 (76 FR 80747). Although Oregon 
adopted the EPA's recommended inter-pollutant offset ratios for 
PM2.5 and submitted them to the EPA, we were unable to 
approve them in our 2011 action because, between the time that Oregon 
adopted the ratios and our 2011 action, the EPA granted a petition to 
reconsider the ratios and changed its policy. As a result, in 2011 we 
deferred action to give Oregon time to demonstrate that the ratios 
protected ambient air quality standards in Oregon, or otherwise revise 
the ratios--in line with the EPA's July 21, 2011, memorandum updating 
the inter-pollutant offset policy.\17\ Oregon did revise its rules, 
moved these provisions to Division 224, at OAR 340-224-0510, and 
submitted the changes in the April 2015 submission evaluated in this 
action. Specifically, Oregon removed the state-wide PM2.5 
inter-pollutant offset ratios, and instead, added rule language to 
require that they be calculated on a case-by-case basis. However, the 
EPA's revised inter-pollutant offset policy states that a state should 
make a specific demonstration for set ratios in a SIP submittal.\18\ 
Oregon's submittal does not include a demonstration for set ratios in 
specific areas. With the exception of OAR 340-224-0510(3), we are 
proposing to approve the revisions to Oregon's net air quality benefit 
emissions rules (OAR 340-224-0500 through 0540).
---------------------------------------------------------------------------

    \17\ Gina McCarthy, EPA Administrator. ``Revised Policy to 
Address Reconsideration of Inter-pollutant Trading Provisions for 
Fine Particles (PM2.5),'' Memorandum to Regional 
Administrators, July 21, 2011.
    \18\ Ibid.
---------------------------------------------------------------------------

Summary
    We are proposing to approve the revisions to Division 224, with the 
exceptions and limitations noted above, because we have determined 
that, in conjunction with other provisions in Divisions 200, 222, and 
225, the revisions are consistent with the requirements of the EPA's 
PSD, major nonattainment NSR, and minor NSR permitting programs. See 40 
CFR 51.160 through 161, 51.165, and 51.166.

M. Division 225: Air Quality Analysis Requirements

    This division contains the air quality analysis requirements, which 
are primarily used in Oregon's NSR program. By its terms, it does not 
apply unless a rule in another division, primarily Division 224, refers 
to Division 225 or a rule in Division 225.
    Substantive changes include revising the definition of ``allowable 
emissions'' at OAR 340-225-0020(1) to add ``40 CFR part 62'' to the 
list of referenced standards and clarifying the definition of 
``baseline concentration year'' at OAR 340-225-0020(3) that varies 
depending on the pollutant for a particular designated area. Oregon 
revised the definitions of ``competing PSD increment consuming source 
impacts'' and ``competing NAAQS [national ambient air quality 
standards] source impacts,'' at OAR 340-225-0020(4) and (5) 
respectively, to broaden the reference to include all of Oregon's 
ambient air quality standards at Division 202 (which include the 
NAAQS)\19\ and to specify that in calculating these concentrations, 
sources may factor in the distance from the new or modified source to 
other emission sources (range of influence or ROI), spatial 
distribution of existing emission sources, topography, and

[[Page 14666]]

meteorology. Oregon also clarified and reorganized the defined ROI 
formula at OAR 340-225-0020(10). The ROI is the distance from the new 
or modified source or source impact area to other emission sources that 
could impact that area. The ROI and source impact area are used to 
predict the air quality impacts of a new or modified source. Oregon 
continues to limit the maximum ROI to 50 kilometers and has moved the 
constant values in the ROI formula from the table at the end of the 
division into the text of the rule.
---------------------------------------------------------------------------

    \19\ Our approval of OAR 340-225-0020(4) and (5) would not 
extend to those ambient standards in Division 202 that we have 
excluded from our approval.
---------------------------------------------------------------------------

    Oregon revised the PSD requirements to align with the court 
decision vacating and remanding the PM2.5 SIL. Please see 
Section L above for a discussion of the court decision. Division 225 
now includes language stating that application of a SIL as a screening 
tool does not preclude the ODEQ from requiring additional analysis to 
evaluate whether a proposed source or modification will cause or 
contribute to a violation of an air quality standard or PSD increment.
    The state also updated the PSD requirements for demonstrating 
compliance with air quality related values. Oregon made clear that, if 
applicable, the analysis applies to each emission unit that increases 
the actual emissions of a regulated pollutant above the portion of the 
netting basis attributable to that emission unit. The state also 
spelled out that the term ``air quality related values'' includes 
visibility, deposition, and ozone impacts. In addition, the state 
mandated a visibility analysis for sources impacting the Columbia River 
Gorge National Scenic Area (Gorge), instead of recommending sources 
also evaluate potential impacts on the Gorge. We propose to approve the 
revisions to Division 225 as meeting CAA requirements, including the 
EPA's major NSR permitting regulations at 40 CFR 51.165 and 51.166, and 
the regional haze requirements at 40 CFR part 51, subpart P.
    As discussed above, Oregon repealed the Requirements for 
Demonstrating a Net Air Quality Benefit section at OAR 340-225-0090, 
after moving the requirements into the Net Air Quality Benefit Emission 
Offsets section in Division 224, which we described above. We propose 
to approve the repeal of OAR 340-225-0090.

N. Division 226: General Emission Standards

    This division contains emission standards and requirements of 
general applicability, including requirements for highest and best 
practicable treatment and control, operating and maintenance, typically 
achievable control technology, additional requirements imposed on a 
permit by permit basis, alternative emission limits (bubbles), and 
particulate emission limits for process equipment and other sources 
(other than fuel or refuse burning equipment or fugitive emissions). In 
OAR 340-226-0120, Oregon clarified that pressure drop and ammonia slip 
are operational, maintenance and work practice requirements that the 
ODEQ may establish in a permit condition or notice of construction 
approval. Oregon also revised OAR 340-226-0130 Typically Achievable 
Control Technology by moving procedural requirements from the 
definitions at Division 200 to this division, and revising them to 
account for Oregon's changes to NSR, Major NSR and Type A State NSR.
    Notably, the state made substantive revisions to the particulate 
emission limits under the Grain Loading Standards section starting at 
OAR 340-226-0200. Oregon's stated goal was to reduce emissions from 
certain sources built before June 1970. The rules phase in tighter 
standards for these older sources, based on typically available control 
technology, such as multiclones. The revisions generally tighten grain 
loading standards for existing sources from 0.2 grains per dry standard 
cubic foot (gr/dscf) to between 0.10 and 0.15 gr/dscf depending on 
whether there is existing source test data for the source and what that 
data shows. Oregon set timelines to achieve these rates depending on 
whether sources were built before or after June 1, 1970. Existing 
sources that operate equipment less frequently (less than 867 hours a 
year) must meet less stringent standards. For new sources, the ODEQ has 
increases the stringency of the grain loading standard by adding a 
significant digit, revising the standard from 0.1 gr/dscf to 0.10 gr/
dscf. We propose to approve the revisions to Division 226 because they 
tighten particulate emission standards and strengthen the SIP.

O. Division 228: Requirements for Fuel Burning Equipment and Fuel 
Sulfur Content

    These rules establish generally applicable requirements for fuel 
burning equipment, including limits on sulfur content and particulate 
matter. Oregon removed a coal space-heating exemption that expired in 
1983 and clarified that sulfur dioxide emissions from recovery furnaces 
are not subject to this division but are instead regulated under the 
SO2 emissions limits for wood products industries in 
Division 234.
    Oregon revised Division 228 to tighten grain loading standards for 
fuel burning equipment in the same manner as in Division 226, discussed 
above. We propose to approve the revisions because they tighten 
particulate emission standards for fuel burning equipment and 
strengthen the SIP. We note that revisions to this division related to 
the federal Acid Rain Program (OAR 340-228-0300, and -0400 through -
0530) were not submitted, but were included to show a complete record 
of the revisions. These rules are not a part of Oregon's federally-
approved SIP.

P. Division 232: Emission Standards for VOC Point Sources

    This division restricts emissions of VOC from new and existing 
listed source categories in the Portland and Medford Air Quality 
Maintenance Areas and in Salem-Keizer in the Salem-Keizer Area 
Transportation Study Area as well as any source in these areas with the 
potential to emit over 100 tons of VOC per year. Consistent with CAA 
requirements, Oregon has clarified that the determination of whether a 
source has a potential to emit over 100 tons of VOC per year is made 
before consideration of add-on controls.
    Oregon expanded the section on marine tank vessels so that the 
marine vapor control requirements now apply to marine tank vessel 
loading of other volatile organic liquids in addition to gasoline, 
effective July 1, 2018. The loading of organic liquids stored in 
pressurized tanks, such as liquefied natural gas and propane, are not 
included in this expansion. Consistent with the change discussed above, 
the state also made clear that, in determining whether a course is 
subject to the rules on surface coating in manufacturing, determination 
of the source's potential to emit is made before consideration of add-
on controls. Oregon also requires records under the surface coating in 
manufacturing rule to be retained for five years rather than two, 
consistent with title V. Finally, Oregon also clarified that 
determining potential to emit for rotogravure and flexographic printing 
sources subject to VOC requirements is made before consideration of 
add-on controls. We propose to approve the changes described above 
because they strengthen the SIP and are consistent with the CAA.

Q. Division 234: Emissions Standards for Wood Products Industries

    Oregon repealed two sections of this division--the neutral sulfite 
semi-chemical section (OAR 340-234-0300

[[Page 14667]]

through 0360) and the sulfite pulp mill section (OAR 340-234-0400 
through 0430)--because sources of this type no longer exist in the 
state. Any new sources constructed would be subject to new source 
review, as well as applicable NSPS and NESHAP requirements. As a 
result, Oregon removed terms no longer used in this division, including 
acid absorption tower, acid plant, average daily production, blow 
system, continual monitoring, continuous-flow conveying system, 
modified wigwam waste burner, neutral sulfite semi-chemical (NSSC) pulp 
mill, production, spent liquor incinerator, sulfite mill, and sulfur 
oxides.
    In the Kraft Pulp Mills section at OAR 340-234-0200 through 0270, 
the state revised what was formerly referred to as ``significant 
upgrading'' of equipment for purposes of determining whether more 
restrictive standards apply. This change was intended to enhance the 
enforceability of the requirement to meet more restrictive emission 
standards based on changes to the source. This section was also revised 
to update the non-recovery furnace opacity limit averaging times to six 
minutes in lieu of the previous three-minute exception. In making this 
change, Oregon relied on the same rationale discussed in Section E. 
above.
    Oregon also added source test methods for particulate matter and 
required demonstrations of oxygen concentrations in recovery furnace 
and lime kiln gases. Under the Reporting section at OAR 340-234-0250, 
the state removed the alternative sampling option where 
transmissometers are not feasible because all pulp mills in Oregon now 
have transmissometers.
    Oregon made minor changes to OAR 340-234-0270, a provision 
authorizing the ODEQ to determine that upset conditions at a subject 
source are chronic and correctable by the installation of new or 
modified process or control equipment and requiring a program and 
schedule to effectively eliminate the deficiencies causing the upset 
conditions. This provision makes clear that such upsets causing 
emissions in excess of applicable limits may be subject to a civil 
penalty or other appropriate action. The EPA is proposing to reapprove 
this provision with these changes based on the understanding that it 
does not excuse excess emissions from enforcement action seeking 
penalties or injunctive relief.
    Oregon moved the test method for the opacity limit for veneer and 
plywood manufacturing operations from the definitions into the 
requirement itself (OAR 340-234-0510(1)(b)(A)). The state also added 
test methods for moisture content to the emission standards for veneer 
and plywood manufacturing requirements. For hardboard tempering ovens, 
Oregon revised the emission requirements to require that alternative 
temperatures be approved using the procedures in the federal NESHAP for 
Plywood and Composite Wood Products, 40 CFR part 63, subpart DDDD. 
Because these rules did not include testing and monitoring 
requirements, Oregon added a new section, OAR 340-234-0540 Testing and 
Monitoring.
    We propose to approve the changes to Division 234, except with 
respect to requirements regulating total reduced sulfur and odor, 
because they strengthen the SIP and are consistent with CAA 
requirements. Total reduced sulfur and odor requirements are not 
appropriate for SIP approval because they are not criteria pollutants 
under title I of the CAA. We therefore are excluding from approval into 
the Oregon SIP the references to total reduced sulfur and odor in 
definitions at OAR 340-234-0010(8) and (10), and in Kraft Pulp Mill 
rules at OAR 340-234-0210(1), OAR 340-234-0220(2), OAR 340-234-0240(1), 
and OAR 340-234-0250(1) and (2).

R. Division 236: Emissions Standards for Specific Industries

    Under Division 236, Oregon repealed rules designed to regulate 
aluminum (OAR 340-236-0100 through 0150) and laterite ore production of 
ferronickel (OAR 340-236-0200 through 0230) because sources of this 
type no longer exist in the state. Any new facilities would be subject 
to new source review as well as applicable NSPS and NESHAP 
requirements. Oregon also made clear the appropriate test method to 
determine compliance with the hot mix asphalt plant rules at OAR 340-
236-0410(1). In addition, the state added a requirement that hot mix 
asphalt plants must develop a fugitive emissions control plan if 
requested by the ODEQ. See OAR 340-236-0410(4).
    We note that Oregon repealed OAR 340-236-0430 specific to portable 
hot mix asphalt plants, which addressed only permit requirements for 
such plants, because these plants are now regulated under general 
permits in Division 216. With the exception of the provisions 
regulating animal matter and municipal solid waste landfills, we 
propose to approve the revisions and repeals because they are 
consistent with CAA requirements. The provisions regulating animal 
matter and municipal solid waste landfills are not related to the 
criteria pollutants regulated under title I of the CAA, not essential 
for meeting and maintaining the NAAQS, nor related to the requirements 
for SIPs under section 110 of the CAA.

S. Division 240: Rules for Areas With Unique Air Quality Needs

    In the submission, Oregon revised air quality control requirements 
for certain areas--these are generally areas that are, or have been, 
designated nonattainment by the EPA. At OAR 340-240-0050, the state 
clarified the appropriate test methods for determining compliance with 
emission standards in this division, improving the enforceability of 
the standards. In addition, visible emissions requirements, at OAR 340-
240-0110, 0140, 0330, 0350, and 0510, were revised to update opacity 
testing averaging times from an aggregate three-minute exception in any 
one hour to a six-minute average. The state explained the basis for 
this change in its submission, and we describe, in Section E above, why 
we propose to approve this change.
    Oregon also revised particulate control requirements for air 
conveying systems, at OAR 340-240-0350, setting removal efficiency 
standards designed to ensure that the pollution collected from a source 
is not ultimately discharged into the atmosphere. In making this 
change, the state regulated design removal efficiency rather than 
actual removal efficiency because of the challenges of testing for 
removal efficiency, which requires measuring emissions at the inlet and 
the outlet. Oregon updated the grain loading standard for air conveying 
systems in the La Grande Urban Growth Area emitting ten tons or less a 
year (from 0.1 to 0.10 grains per standard cubic foot) but allowed 
extensions of up to one year, if necessary to install controls to meet 
the revised standard. Oregon made the changes intending to better align 
the rules with federally-approved standards and testing methods.
    Also in this division, Oregon repealed the charcoal producing plant 
rules at OAR 340-240-0170 because there are no longer any existing 
sources of this type in Oregon outside of Lane County (which is subject 
to rules in addition to, or in lieu of, these rules), and any new 
charcoal producing plants would be subject to new source review and any 
applicable NSPS and NESHAP requirements. In accord with changes to 
other divisions discussed above, the state removed the sanctioned use 
of asphalt and oil as dust suppressants. Oregon also repealed old, 
expired provisions in this division.
    We note that Oregon's federally-approved SIP currently controls 
sources

[[Page 14668]]

in the Klamath Falls nonattainment area, and incentivizes sources in 
Klamath Falls to offset particulate emissions by decommissioning 
fireplaces, installing fireplace inserts, replacing old stoves with 
certified stoves, and replacing wood-fired heaters with alternatives 
like natural gas and electric baseboards. In this submission, Oregon 
updated requirements in Klamath Falls by removing an exception from the 
20% opacity standard, and by uniformly applying the 6-minute averaging 
time to measure opacity, as described above in Section E.
    Oregon also revised this section to expand offsets to the Lakeview 
sustainment area as well as other eligible areas. See OAR 340-240-0560. 
We propose to approve the revisions because they are consistent with 
the CAA and strengthen the SIP.

T. Division 242: Rules Applicable to the Portland Area

    This division contains additional requirements that apply in the 
Portland area. The industrial emissions management program was updated 
to account for the changes to Oregon's Major NSR and State NSR 
programs. Oregon also moved the net air quality benefit provisions to 
Division 224 to consolidate NSR requirements. We note that we already 
approved the changes to the Gasoline Vapors from Gasoline Transfer and 
Dispensing Operations section at OAR 340-242-0500, 0510, and 0520 on 
October 27, 2015 (80 FR 65655), and are therefore not addressing them 
in this action.
    Oregon repealed the Spray Paint rule sections at OAR 340-242-0700 
through 0790 because the EPA has set national rules designed to be more 
stringent. The Oregon spray paint rules were originally a mass-based 
standard adopted in 1995 and projected to have a 15 percent reduction 
in VOCs in the 1996 Portland Ozone Maintenance Plan. On March 24, 2008, 
the EPA finalized national VOC rules (73 FR 15604). As described in the 
proposal for the EPA's rule, the EPA's reactivity-based standard would 
provide a 19 percent reduction in VOCs (July 16, 2007, 72 FR 38952). 
The EPA also cited the rule's projected 19 percent reduction of VOC in 
an EPA memo providing guidelines on emissions reduction credit.\20\ In 
addition, California Air Resource Board developed a reactivity-based 
standard, approved by the EPA in September 2005 (70 FR 53930). We find 
the repeal to be approvable and propose to approve the submitted 
changes to Division 242 as consistent with CAA requirements.
---------------------------------------------------------------------------

    \20\ Stephen Page, ``Emission Reduction Credit for Three Federal 
Rules for Categories of Consumer and Commercial Products,'' Memo to 
Regional Administrators, 2007.
---------------------------------------------------------------------------

U. Division 262: Heat Smart Program for Residential Woodstoves and 
Other Solid Fuel Heating Devices

    Oregon submitted a change to the definitions section of this 
division, at OAR 340-262-0450. Oregon's rules now expressly exclude 
boilers providing process heat to a commercial, industrial, or 
institutional establishment (that obtain a construction approval from 
the ODEQ) from the definition of ``solid fuel burning device'' 
regulated under the Heat Smart Program. These units are currently 
exempt from the Heat Smart Program under Oregon's SIP and the revision 
to Oregon's rules continues that exemption. We propose to approve the 
change because as a matter of federal law, this revision results in no 
change to the Oregon SIP.

V. Division 264: Rules for Open Burning

    The only substantive change to this division is the repeal of the 
forced air pit incinerators rule and associated references at OAR 340-
264-0190. Forced air pit and air curtain incinerators are regulated 
under the EPA's rules for Commercial/Industrial Solid Waste 
Incinerators and are required to have title V operating permits. The 
ODEQ has therefore determined that such units should no longer be 
regulated under Oregon's rules for open burning. We propose to approve 
the repeal as consistent with the CAA.

W. Division 268: Emission Reduction Credits

    In Division 268, Oregon submitted revisions to OAR 340-268-0030 to 
clarify when reductions in criteria pollutant emissions that are also 
hazardous air pollutant emissions are creditable. Emissions reductions 
required to meet federal NESHAP standards in 40 CFR part 61 or 63 are 
not creditable as emission reduction credits for purposes of Major NSR 
in nonattainment or reattainment areas in Oregon. However, criteria 
pollutant reductions that are in excess of, or incidental to, the 
required hazardous air pollutant reductions can potentially earn 
credits--as long as all conditions are met. Oregon also lowered the 
threshold for banking credits in the Klamath Falls and Lakeview areas 
from ten tons to one ton--to encourage trading activity. Finally, 
Oregon specified when such credits are considered used up, and when 
they expire. The revisions are consistent with the CAA and the EPA's 
implementing regulations and we propose to approve them.

X. Source Sampling Manual and Continuous Monitoring Manual

    Oregon submitted the ODEQ Source Sampling Manual, Volumes I and II, 
and the ODEQ Continuous Monitoring Manual, revised as of April 2015. 
These manuals are key reference materials used in OAR Divisions 200 
through 268. As noted above, Oregon added references to the April 2015 
edition of both manuals in Division 200. Oregon incorporates changes to 
testing and monitoring requirements--spelled out in these manuals--into 
the permits of source owners and operators, as necessary.
    The Source Sampling Manual addresses air emissions source sampling 
practices and procedures for projects in Oregon. Volume I of this 
manual was updated to account for changes to the EPA methods for 
measuring fine particulate matter, and other new and modernized 
methods. Volume II of this manual was revised to remove the annual 
reporting requirements for small gasoline dispensing facilities 
(throughput of less than 10,000 gallons of gasoline per month). The 
state determined that the annual reporting requirement was not needed 
to measure compliance because the ODEQ collected one-time throughput 
data from these facilities and is authorized to request additional 
information if needed.
    Oregon extensively revised the Continuous Monitoring Manual, 
originally published in 1992. The manual includes federal monitoring 
requirements for the NSPS, NESHAP, and Acid Rain programs and was 
updated primarily to address continuous monitoring systems of all 
types. The changes affect commercial operations that are required to 
install and operate continuous monitoring systems, contractors that 
audit or certify the systems, and vendors that sell or design the 
systems. We reviewed the revised manuals, and we propose to approve the 
changes as consistent with 40 CFR part 51, subpart M, and part 60, 
subparts A and B, for purposes of the emission limits and requirements 
approved into the SIP.

IV. Proposed Action

    We propose to approve, and incorporate by reference, specific rule 
revisions submitted by Oregon on May 21, 2015. As documented in the 
submission, we propose to approve certain of the state rule revisions 
to also apply in Lane County, because the Oregon EQC has determined 
those rule to be more stringent that the

[[Page 14669]]

corresponding local rules. We also propose to approve, but not 
incorporate by reference, specific provisions that provide the ODEQ 
with authority needed for SIP approval.
    In addition, we propose to remove repealed rules from Oregon's 
federally-approved SIP, as requested by the state, because they are 
obsolete or redundant. Finally, we are not approving certain rules that 
are inconsistent with CAA requirements, or that are inappropriate for 
SIP approval, because they are not related to the criteria pollutants 
regulated under title I of the CAA, not essential for meeting and 
maintaining the NAAQS, or not related to the requirements for SIPs 
under section 110 of the CAA.

A. Rules Approved and Incorporated by Reference

    We propose to approve into the Oregon SIP, and incorporate by 
reference at 40 CFR part 52, subpart MM, the submitted revisions to 
Chapter 340 of the OAR listed below, state effective April 16, 2015:
     Division 200--General Air Pollution Procedures and 
Definitions (0010, 0020, 0025, 0030, 0035);
     Division 202--Ambient Air Quality Standards and PSD 
Increments (0010, 0020, 0050, 0070, 0100, 0130, 0200, 0210, 0220, 
0225);
     Division 204--Designation of Air Quality Areas (0010, 
0020, 0030, 0040, 0050, 0060, 0070, 0080, 0090, 0300, 0310, 0320);
     Division 206--Air Pollution Emergencies (0010, 0020, 0030, 
0040, 0050, 0060, 0070, 8010, 8020, 8030, 8040);
     Division 208--Visible Emissions and Nuisance Requirements 
(0005, 0010, 0110, 0210);
     Division 209--Public Participation (0010, 0020, 0030, 
0040, 0050, 0060, 0070, 0080);
     Division 210--Stationary Source Notification Requirements 
(0010, 0020, 0100, 0110, 0120, 0205, 0215, 0225, 0230, 0240, 0250);
     Division 212--Stationary Source Testing and Monitoring 
(0005, 0010, 0110, 0120, 0130, 0140, 0150);
     Division 214--Stationary Source Reporting Requirements 
(0005, 0010, 0100, 0110, 0114, 0130, 0200, 0210, 0220, 0300--except 
introductory sentence related to NSPS and NESHAPs, 0310, 0320, 0330, 
0340, 0350);
     Division 216--Air Contaminant Discharge Permits (0010, 
0020, 0025, 0030, 0040, 0052, 0054, 0060, 0062, 0064, 0066, 0068, 0070, 
0082, 0084, 0090, 0094, 8010, 8020);
     Division 222--Stationary Source Plant Site Emission Limits 
(0010, 0020, 0030, 0035, 0040, 0041, 0042, 0046, 0048, 0051, 0055, 
0080, 0090);
     Division 224--New Source Review (0010, 0020, 0025, 0030, 
0034, 0038, 0040, 0045, 0050, 0055, 0060, 0070, 0245, 0250, 0255, 0260, 
0270, 0500, 0510--except paragraph (3), 0520, 0530, 0540);
     Division 225--Air Quality Analysis Requirements (0010, 
0020, 0030, 0040, 0045, 0050, 0060, 0070);
     Division 226--General Emissions Standards (0005, 0010, 
0100, 0110, 0120, 0130, 0140, 0210, 0310, 0320, 0400, 8010);
     Division 228--Requirements for Fuel Burning Equipment and 
Fuel Sulfur Content (0010, 0020, 0100, 0110, 0120, 0130, 0200, 0210);
     Division 232--Emission Standards for VOC Point Sources 
(0010, 0020, 0030, 0040, 0050, 0060, 0080, 0085, 0090, 0100, 0110, 
0120, 0130, 0140, 0150, 0160, 0170, 0180, 0190, 0200, 0210, 0220, 
0230);
     Division 234--Emission Standards for Wood Products 
Industries (0005, 0010--except (8) and (10), 0100, 0140, 0200, 0210--
except (1), 0220--except (2), 0240--except (1), 0250--except (1) and 
(2), 0270, 0500, 0510, 0520, 0530, 0540);
     Division 236--Emission Standards for Specific Industries 
(0005, 0010, 0400, 0410, 0420, 0440, 8010);
     Division 240--Rules for Areas with Unique Air Quality 
Needs (0010, 0020, 0030, 0050, 0100, 0110, 0120, 0130, 0140, 0150, 
0160, 0180, 0190, 0210, 0220, 0250, 0300, 0320, 0330, 0340, 0350, 0360, 
0400, 0410, 0420, 0430, 0440, 0510, 0550, 0560, 0610);
     Division 242--Rules Applicable to the Portland Area (0400, 
0410, 0420, 0430, 0440, 0600, 0610, 0620, 0630);
     Division 262--Heat Smart Program for Residential 
Woodstoves and Other Solid Fuel Heating Devices (0450);
     Division 264--Rules for Open Burning (0010, 0020, 0030, 
0040, 0050, 0060, 0070, 0075, 0078, 0080, 0100, 0110, 0120, 0130, 0140, 
0150, 0160, 0170, 0175, 0180); and
     Division 268--Emission Reduction Credits (0010, 0020, 
0030).
Rules Also Approved for Lane County
     Division 200--General Air Pollution Procedures and 
Definitions (0020);
     Division 202--Ambient Air Quality Standards and PSD 
Increments (0050);
     Division 204--Designation of Air Quality Areas (0300, 
0310, 0320);
     Division 208--Visible Emissions and Nuisance Requirements 
(0110, 0210);
     Division 214--Stationary Source Reporting Requirements 
(0114) (5);
     Division 216--Air Contaminant Discharge Permits (0040, 
8010);
     Division 222--Stationary Source Plant Site Emission Limits 
(0090);
     Division 224 -New Source Review (0030, 0530);
     Division 225--Air Quality Analysis Requirements (0010, 
0020, 0030, 0040, 0045, 0050, 0060, 0070);
     Division 226--General Emissions Standards (0210); and
     Division 228--Requirements for Fuel Burning Equipment and 
Fuel Sulfur Content (0210).

B. Rules Approved but Not Incorporated by Reference

    We propose to approve, but not incorporate by reference, the 
following provisions:
     ODEQ Source Sampling Manual, Volumes I and II, April 2015 
(for purposes of the limits approved into the SIP);
     ODEQ Continuous Emissions Monitoring Manual, April 2015 
(for purposes of the limits approved into the SIP);
     ODEQ-LRAPA Stringency Analysis and Directive, Attachment 
B; and
     Division 200--General Air Pollution Procedures and 
Definitions (0100, 0110, 0120).

C. Rules Removed

    We propose to remove the following sections from the Oregon SIP 
because they have been repealed, replaced by rules noted in paragraph A 
above, or the state has asked that they be removed:
     Division 208--Visible Emissions and Fugitive Emissions 
Requirements (0100, 0200);
     Division 212--Compliance Assurance Monitoring (0200, 0210, 
0220, 0230, 0240, 0250, 0260, 0270, 0280);
     Division 214--Stationary Source Reporting Requirements 
(0360);
     Division 222--Stationary Source Plant Site Emissions 
Limits (0043, 0045, 0070);
     Division 224--New Source Review (0080, 0100);
     Division 225--Air Quality Analysis Requirements (0090);
     Division 226--General Emission Standards (0200);
     Division 228--Requirements for Fuel Burning Equipment and 
Fuel Sulfur Content (0400, 0410, 0420, 0430, 0440, 0450, 0460, 0470, 
0480, 0490, 0500, 0510, 0520, 0530);
     Division 234--Emission Standards for Wood Products 
Industries (0300, 0310, 0320, 0330, 0340, 0350, 0360, 0400, 0410, 0420, 
0430);
     Division 236--Emission Standards for Specific Industries 
(0100, 0110,

[[Page 14670]]

0120, 0130, 0140, 0150, 0200, 0210, 0220, 0230, 0430);
     Division 240--Rules for Areas with Unique Air Quality 
Needs (0170, 0230, 0310);
     Division 242--Rules Applicable to the Portland Areas 
(0700, 0710, 0720, 0730, 0740, 0750, 0760, 0770, 0780, 0790); and
     Division 264--Rules for Open Burning (0190).

D. Rules Not Approved

    For the reasons stated above, we are not approving the following 
revised provisions submitted by Oregon because they are inconsistent 
with CAA requirements, or because they are inappropriate for SIP 
approval under section 110, title I of the CAA:
     Division 200--General Air Pollution Procedures and 
Definitions (0050) (compliance schedules);
     Division 214--Stationary Source Reporting Requirements 
(0300 introductory sentence related to NSPS and NESHAPs);
     Division 222--Stationary Source Plant Site Emission Limits 
(0060) (hazardous air pollutants);
     Division 224--New Source Review (0510(3)) 
(PM2.5 inter-pollutant offset ratios); and
     Division 234--Emission Standards for Wood Products 
Industries (0010(8) and (10), 0210(1), 0220(2), 0240(1), 0250 (1) and 
(2)) (total reduced sulfur and odor).

V. Incorporation by Reference

    In this rule, we are proposing to include in a final rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, we are proposing to incorporate by 
reference the provisions described above in Section IV. Proposed 
Action. The EPA has made, and will continue to make, these documents 
generally available electronically through http://www.regulations.gov 
and/or in hard copy at the appropriate EPA office (see the ADDRESSES 
section of this preamble for more information).

VI. Oregon Notice Provision

    Oregon Revised Statute 468.126 prohibits the ODEQ from imposing a 
penalty for violation of an air, water or solid waste permit unless the 
source has been provided five days' advanced written notice of the 
violation and has not come into compliance or submitted a compliance 
schedule within that five-day period. By its terms, the statute does 
not apply to Oregon's title V program or to any program if application 
of the notice provision would disqualify the program from federal 
delegation. Oregon has previously confirmed that, because application 
of the notice provision would preclude EPA approval of the Oregon SIP, 
no advance notice is required for violation of SIP requirements.

VII. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, the EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
proposed action merely approves state law as meeting federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because this action does not involve technical standards; and
     does not provide the EPA with the discretionary authority 
to address, as appropriate, disproportionate human health or 
environmental effects, using practicable and legally permissible 
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where the EPA or an Indian tribe has demonstrated 
that a tribe has jurisdiction. In those areas of Indian country, the 
rule does not have tribal implications as specified by Executive Order 
13175 (65 FR 67249, November 9, 2000), nor will it impose substantial 
direct costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

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

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

    Dated: March 9, 2017.
Michelle L. Pirzadeh,
Acting Regional Administrator, EPA Region 10.
[FR Doc. 2017-05463 Filed 3-21-17; 8:45 am]
 BILLING CODE 6560-50-P



                                                    14654                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    October 4, 1993) and 13563 (76 FR 3821,                   Authority: 42 U.S.C. 7401 et seq.                   restricted by statute. Multimedia
                                                    January 21, 2011);                                       Dated: March 10, 2017.                               submissions (audio, video, etc.) must be
                                                       • does not impose an information                     Nancy J. Lindsay,                                     accompanied by a written comment.
                                                    collection burden under the provisions                                                                        The written comment is considered the
                                                                                                            Acting Regional Administrator, Region 10.
                                                    of the Paperwork Reduction Act (44                                                                            official comment and should include
                                                                                                            [FR Doc. 2017–05467 Filed 3–21–17; 8:45 am]
                                                    U.S.C. 3501 et seq.);                                                                                         discussion of all points you wish to
                                                       • is certified as not having a                       BILLING CODE 6560–50–P
                                                                                                                                                                  make. The EPA will generally not
                                                    significant economic impact on a                                                                              consider comments or comment
                                                    substantial number of small entities                                                                          contents located outside of the primary
                                                    under the Regulatory Flexibility Act (5                 ENVIRONMENTAL PROTECTION
                                                                                                            AGENCY                                                submission (i.e. on the web, cloud, or
                                                    U.S.C. 601 et seq.);                                                                                          other file sharing system). For
                                                       • does not contain any unfunded                      40 CFR Part 52                                        additional submission methods, the full
                                                    mandate or significantly or uniquely                                                                          EPA public comment policy,
                                                    affect small governments, as described                  [EPA–R10–OAR–2015–0333; FRL–9959–06–                  information about CBI or multimedia
                                                    in the Unfunded Mandates Reform Act                     Region 10]
                                                                                                                                                                  submissions, and general guidance on
                                                    of 1995 (Pub. L. 104–4);                                                                                      making effective comments, please visit
                                                       • does not have Federalism                           Approval and Promulgation of
                                                                                                            Implementation Plans; Oregon:                         http://www2.epa.gov/dockets/
                                                    implications as specified in Executive                                                                        commenting-epa-dockets.
                                                    Order 13132 (64 FR 43255, August 10,                    Permitting and General Rule Revisions
                                                                                                                                                                  FOR FURTHER INFORMATION CONTACT:
                                                    1999);                                                  AGENCY:  Environmental Protection                     Kristin Hall, Air Planning Unit, Office of
                                                       • is not an economically significant                 Agency (EPA).                                         Air and Waste (OAW–150),
                                                    regulatory action based on health or                    ACTION: Proposed rule.                                Environmental Protection Agency—
                                                    safety risks subject to Executive Order
                                                                                                                                                                  Region 10, 1200 Sixth Ave., Seattle, WA
                                                    13045 (62 FR 19885, April 23, 1997);                    SUMMARY:   The Environmental Protection               98101; telephone number: (206) 553–
                                                       • is not a significant regulatory action             Agency (EPA) proposes to approve, and                 6357; email address:
                                                    subject to Executive Order 13211 (66 FR                 incorporate by reference, specific                    hall.kristin@epa.gov.
                                                    28355, May 22, 2001);                                   changes to Oregon’s State
                                                       • is not subject to the requirements of              Implementation Plan (SIP) submitted on                SUPPLEMENTARY INFORMATION:
                                                    section 12(d) of the National                           April 22, 2015. The changes relate to the             Throughout this document, wherever
                                                    Technology Transfer and Advancement                     criteria pollutants for which the EPA                 ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, it is
                                                    Act of 1995 (15 U.S.C. 272 note) because                has established national ambient air                  intended to refer to the EPA.
                                                    this action does not involve technical                  quality standards—carbon monoxide,                    Table of Contents
                                                    standards; and                                          lead, nitrogen dioxide, ozone,
                                                       • does not provide the EPA with the                  particulate matter, and sulfur dioxide.               I. Background
                                                    discretionary authority to address, as                  Specifically, the changes account for                 II. Evaluation of Revisions
                                                    appropriate, disproportionate human                     new federal requirements for fine                        A. Division 200: General Air Pollution
                                                    health or environmental effects, using                  particulate matter, update the major and                    Procedures and Definitions
                                                    practicable and legally permissible                                                                              B. Division 202: Ambient Air Quality
                                                                                                            minor source pre-construction                               Standards and PSD Increments
                                                    methods, under Executive Order 12898                    permitting programs, and add state-level                 C. Division 204: Designation of Air Quality
                                                    (59 FR 7629, February 16, 1994).                        air quality designations. The changes                       Areas
                                                       In addition, this rule does not have                 also address public notice procedures                    D. Division 206: Air Pollution Emergencies
                                                    tribal implications as specified by                     for informational meetings, and tighten                  E. Division 208: Visible Emissions and
                                                    Executive Order 13175 (65 FR 67249,                     emission standards for dust and smoke.                      Nuisance Requirements
                                                    November 9, 2000), because it will not                  In addition, Oregon reorganized rules in                 F. Division 209: Public Participation
                                                    impose substantial direct costs on tribal                                                                        G. Division 210: Stationary Source
                                                                                                            the SIP by consolidating definitions,                       Notification Requirements
                                                    governments or preempt tribal law. As                   removing duplicate provisions,
                                                    discussed above, the SIP is not                                                                                  H. Division 212: Stationary Source Testing
                                                                                                            correcting errors, and removing                             and Monitoring
                                                    approved to apply in Indian country                     outdated provisions. We note that                        I. Division 214: Stationary Source
                                                    located in the state, except for non-trust              certain rule changes are not appropriate                    Reporting Requirements
                                                    land within the exterior boundaries of                  for SIP approval, or are inconsistent                    J. Division 216: Air Contaminant Discharge
                                                    the Puyallup Indian Reservation (also                   with Clean Air Act requirements. In                         Permits
                                                    known as the 1873 Survey Area), or any                  those cases, we are not approving the                    K. Division 222: Stationary Source Plant
                                                    other area where the EPA or an Indian                                                                               Site Emission Limits
                                                                                                            revisions.                                               L. Division 224: New Source Review
                                                    tribe has demonstrated that a tribe has
                                                                                                            DATES: Comments must be received on                      M. Division 225: Air Quality Analysis
                                                    jurisdiction. Consistent with EPA
                                                                                                            or before April 21, 2017.                                   Requirements
                                                    policy, the EPA provided a consultation                                                                          N. Division 226: General Emission
                                                    opportunity to the Puyallup Tribe in a                  ADDRESSES: Submit your comments,
                                                                                                                                                                        Standards
                                                    letter dated July 1, 2016. The EPA did                  identified by Docket ID No. EPA–R10–                     O. Division 228: Requirements for Fuel
                                                    not receive a request for consultation.                 OAR–2015–0333, at http://                                   Burning Equipment and Fuel Sulfur
                                                                                                            www.regulations.gov. Follow the online                      Content
                                                    List of Subjects in 40 CFR Part 52                      instructions for submitting comments.                    P. Division 232: Emission Standards for
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                      Environmental protection, Air                         Once submitted, comments cannot be                          VOC Point Sources
                                                    pollution control, Carbon monoxide,                     edited or removed from regulations.gov.                  Q. Division 234: Emissions Standards for
                                                    Incorporation by reference,                             The EPA may publish any comment                             Wood Products Industries
                                                                                                                                                                     R. Division 236: Emissions Standards for
                                                    Intergovernmental relations, Lead,                      received to its public docket. Do not                       Specific Industries
                                                    Nitrogen dioxide, Ozone, Particulate                    submit electronically any information                    S. Division 240: Rules for Areas With
                                                    matter, Reporting and recordkeeping                     you consider to be Confidential                             Unique Air Quality Needs
                                                    requirements, Sulfur oxides, Volatile                   Business Information (CBI) or other                      T. Division 242: Rules Applicable to the
                                                    organic compounds.                                      information whose disclosure is                             Portland Area



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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                            14655

                                                      U. Division 262: Heat Smart Program for                  • revises the state’s woodstove                    Division 200. Oregon also moved
                                                         Residential Woodstoves and Other Solid             replacement program for small                         procedural elements out of the
                                                         Fuel Heating Devices                               commercial solid fuel boilers regulated               definitions in Division 200, and into the
                                                      V. Division 264: Rules for Open Burning
                                                                                                            under the permitting program;                         specific divisions to which they apply.
                                                      W. Division 268: Emission Reduction
                                                         Credits
                                                                                                               • updates the Oregon Source                        Duplicate and obsolete terms were
                                                      X. Source Sampling Manual and                         Sampling Manual, Volumes I and II, and                removed. In this section of our
                                                         Continuous Monitoring Manual                       the Oregon Continuous Monitoring                      evaluation, we discuss key changes to
                                                    IV. Proposed Action                                     Manual; and                                           existing definitions and new terms used
                                                      A. Rules Approved and Incorporated by                    • removes annual reporting                         in multiple divisions. Substantive new
                                                         Reference                                          requirements for small gasoline                       terms, or revisions to definitions that are
                                                      B. Rules Approved but Not Incorporated by             dispensing facilities.                                mostly used in a single division, are
                                                         Reference                                             As part of the submission, Oregon
                                                      C. Rules Removed                                                                                            evaluated in Sections B through X
                                                                                                            included a staff report outlining the                 below (in the discussion of the changes
                                                      D. Rules Not Approved
                                                    V. Incorporation by Reference
                                                                                                            changes to the state air quality rules and            to the specific division).
                                                    VI. Oregon Notice Provision                             how the revised rules have been                          To improve clarity, the state revised
                                                    VII. Statutory and Executive Order Reviews              designed to protect air quality                       key definitions to consistently use
                                                                                                            standards. Oregon also developed a                    certain terms—such as ‘‘regulated
                                                    I. Background                                           ‘‘crosswalk’’ document—a                              pollutant,’’ ‘‘control device,’’ ‘‘major
                                                                                                            comprehensive list of the rule changes
                                                       Each state has a SIP containing the                                                                        modification,’’ ‘‘major source,’’ and
                                                                                                            and why they were proposed. The
                                                    control measures and strategies used to                                                                       ‘‘unclassified,’’—and removed
                                                    attain and maintain the national                        submission, including the staff report,
                                                                                                                                                                  variations on these terms that may have
                                                    ambient air quality standards (NAAQS)                   crosswalk document, public comments
                                                                                                                                                                  created confusion. Oregon also added
                                                    established by the EPA for the criteria                 and responses, is located in the docket
                                                                                                                                                                  new definitions to Division 200.
                                                    pollutants (carbon monoxide, lead,                      for this action.
                                                                                                                                                                  ‘‘Capture efficiency,’’ ‘‘control
                                                                                                               We note that on November 14, 2016,
                                                    nitrogen dioxide, ozone, particulate                                                                          efficiency,’’ ‘‘destruction efficiency,’’
                                                                                                            Oregon submitted a letter to correct
                                                    matter, sulfur dioxide). The SIP is                                                                           and ‘‘removal efficiency’’ were added to
                                                                                                            administrative errors in the original
                                                    extensive, containing such elements as                                                                        differentiate amongst similar terms. The
                                                                                                            April 20, 2015, cover letter and
                                                    air pollution control regulations,                                                                            state defined the term ‘‘internal
                                                    emission inventories, monitoring                        attachment. In the letter of correction,
                                                                                                                                                                  combustion sources’’ to clarify the
                                                    network, attainment demonstrations,                     Oregon identified several rules that
                                                                                                                                                                  universe of regulated fuel burning
                                                    and enforcement mechanisms. The SIP                     were submitted to the EPA in error.
                                                                                                                                                                  equipment under Oregon’s rules.
                                                    is a living compilation of these elements               These rules were not adopted by the
                                                                                                            Oregon Environmental Quality                             Oregon also defined the term
                                                    and is revised and updated by the state                                                                       ‘‘portable,’’ as ‘‘designed and capable of
                                                    over time—to keep pace with federal                     Commission (EQC) as part of the Oregon
                                                                                                            SIP, and should not have been                         being carried or moved from one
                                                    requirements and to address changing                                                                          location to another.’’ At the same time,
                                                    air quality issues in the state.                        submitted for SIP approval. Oregon also
                                                                                                            noted one provision that was adopted                  the state revised the definition of
                                                       On April 22, 2015, the Oregon                                                                              ‘‘stationary source’’ to include portable
                                                    Department of Environmental Quality                     by the EQC and should have been
                                                                                                            submitted. Please see the November 14,                sources required to have permits under
                                                    (ODEQ) submitted significant revisions                                                                        Oregon’s air contaminant discharge
                                                    to the Oregon SIP. Oregon made changes                  2016 letter of correction in the docket
                                                                                                            for this action.                                      permitting (ACDP) program at Division
                                                    to 26 Oregon Administrative Rule (OAR)                                                                        216. ‘‘Wood fuel-fired device’’ was used
                                                    divisions within Chapter 340, and two                      Below, we discuss our review of the
                                                                                                            submitted changes to the Oregon SIP,                  in multiple Oregon rules, but was never
                                                    source sampling and monitoring                                                                                formally defined. The state added the
                                                    manuals related to the rules. These                     and our proposed action. We have
                                                                                                            focused on the substantive rule                       term, defined as ‘‘a device or appliance
                                                    changes, effective April 16, 2015, are                                                                        designed for wood fuel combustion,
                                                    part of Oregon’s ongoing efforts to                     revisions. We did not describe the many
                                                                                                            typographical corrections, minor edits,               including cordwood stoves, woodstoves,
                                                    update state air quality rules and the                                                                        and fireplace stove inserts, fireplaces,
                                                    SIP.                                                    and renumbering changes. We also note
                                                                                                            this action does not address submitted                wood fuel-fired cook stoves, pellet
                                                       Oregon’s April 22, 2015 submission
                                                                                                            revisions for small gasoline dispensing               stoves and combination fuel furnaces
                                                    documents the public notice and
                                                                                                            facilities because we approved the                    and boilers that burn wood fuels.’’ The
                                                    hearing process undertaken by the state,
                                                                                                            revisions on October 27, 2015 (80 FR                  remainder of the new definitions
                                                    including the state’s response to
                                                                                                            65655).                                               established are common dictionary
                                                    comments received. The submission
                                                                                                                                                                  terms.
                                                    requests EPA approval of the following                  II. Evaluation of Revisions
                                                    changes to air quality rules in Oregon’s                                                                         Oregon also made substantive changes
                                                    federally-approved State                                A. Division 200: General Air Pollution                to several definitions. The definition of
                                                    Implementation Plan (SIP):                              Procedures and Definitions                            ‘‘adjacent’’ at OAR 340–200–0020(4)
                                                       • Updates particulate matter emission                                                                      was narrowed by limiting the use of this
                                                                                                            Definitions                                           defined term (‘‘interdependent facilities
                                                    standards;
                                                       • revises permitting requirements for                  Division 200 contains definitions                   that are nearby to each other’’) to its use
                                                                                                            used throughout the air quality                       in the ‘‘major source’’ definition at OAR
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                                                    emergency generators and small natural
                                                    gas or oil-fired equipment;                             divisions of Chapter 340 of the OAR, as               340–200–0020(91), and in the air
                                                       • establishes two new state air quality              well as other generally-applicable rules.             contaminant discharge permit program
                                                    area designations—sustainment and                       However, over time, terms and                         (ACDP) at OAR 340–216–0070. In other
                                                    reattainment;                                           definitions have also been established                places where the term ‘‘adjacent’’ is
                                                       • revises the major and minor source                 throughout other divisions. In the                    used, the ODEQ’s response to comments
                                                    pre-construction permitting programs;                   submitted changes, Oregon re-organized                document in the submission indicates
                                                       • changes public processes for                       and streamlined rules to move most air                that the ODEQ intends to use the
                                                    informational meetings;                                 quality terms and definitions into                    dictionary definition.


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                                                    14656                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                       Oregon revised the term                              reference the test method for measuring               Other Provisions
                                                    ‘‘categorically insignificant activities’’ at           each pollutant. The definition of                        The submission also includes changes
                                                    OAR 340–200–0020(23) in several                         ‘‘volatile organic compounds’’ or                     to the generally applicable sections in
                                                    respects. In general, the revisions                     ‘‘VOC,’’ at OAR 340–200–0020(190),                    Division 200. Oregon submitted changes
                                                    narrow when emissions may be                            was updated to take into account                      to OAR 340–200–0030 to clarify that
                                                    excluded from consideration—in some                     changes to the EPA’s definition of VOC                woodstove emissions are regulated, and
                                                    aspects of Oregon’s permitting                          in the Code of Federal Regulations                    may also be used to create emissions
                                                    program—as ‘‘insignificant.’’ For                       (CFR) at 40 CFR 51.100(s).                            reduction credits. In addition, Oregon
                                                    example, Oregon put a cap on the                                                                              added a general rule section at OAR
                                                                                                               We have evaluated these changes, and
                                                    aggregate emissions from fuel burning
                                                                                                            the additional changes to definitions                 340–200–0035, listing updated versions
                                                    equipment that may be considered
                                                                                                            discussed in Sections B through X                     of key reference materials for air quality
                                                    categorically insignificant, and also
                                                                                                            below, and propose to find that they are              requirements. We propose to approve
                                                    restricted when emergency generators
                                                                                                            consistent with Clean Air Act (CAA)                   and incorporate by reference these
                                                    may be considered categorically
                                                                                                            requirements and the EPA’s                            changes.
                                                    insignificant (limiting the exemption to
                                                                                                            implementing regulations. We therefore                   We note that this division contains
                                                    no more than 3,000 horsepower, in the
                                                                                                            propose to approve the revised and                    rules on conflicts of interests at OAR
                                                    aggregate). Oregon also narrowed when
                                                                                                            added definitions into the Oregon SIP.                340–200–0100, 0110, and 0120. These
                                                    emissions from oil/water separators in
                                                                                                                                                                  rules were not substantively changed in
                                                    effluent treatment systems may be                       LRAPA Jurisdiction                                    the submittal and remain consistent
                                                    considered categorically insignificant.
                                                                                                               A key aspect of the submitted                      with the CAA requirements for such
                                                    We note that Oregon did create a new
                                                                                                            revisions relates to jurisdiction. Oregon             rules at CAA sections 110(a)(2)(E) and
                                                    category of insignificant emissions—fuel
                                                                                                                                                                  128. We propose to approve, but not
                                                    burning equipment brought on site for                   added new applicability language to
                                                    six months or less for construction,                                                                          incorporate by reference, OAR 340–200–
                                                                                                            Division 200, and throughout the air
                                                    maintenance, or similar purposes,                                                                             0100, 0110, and 0120, to avoid the
                                                                                                            quality rules, to address the
                                                    provided the equipment performs the                                                                           potential for confusion or potential
                                                                                                            applicability of state rules in Lane
                                                    same function as the permanent                                                                                conflict with the EPA’s independent
                                                                                                            County, the authority of the Lane
                                                    equipment, and is operated within the                                                                         authorities. We note that, consistent
                                                                                                            Regional Air Protection Agency
                                                    source’s existing plant site emission                                                                         with our 2003 action, we are not
                                                                                                            (LRAPA) to implement and enforce state
                                                    limit. Importantly, however,                                                                                  approving OAR 340–200–0050 because
                                                                                                            rules in the county, and the authority of
                                                    insignificant activity emissions must be                                                                      any compliance schedule established by
                                                                                                            LRAPA to adopt local rules. The
                                                    included in determining whether a                                                                             Oregon under this provision must be
                                                                                                            changes clarify that the ODEQ
                                                    source is a ‘‘federal major source’’ (OAR                                                                     submitted to, and approved by EPA,
                                                                                                            administers its rules in all areas, except
                                                    340–200–0020(66)) or a ‘‘major                                                                                before it will be federally-enforceable or
                                                                                                            where the Oregon Environmental
                                                    modification’’ (OAR 340–224–                                                                                  change the requirements of the EPA-
                                                                                                            Quality Commission (EQC) has
                                                    0025(2)(a)(B)) subject to federal major                                                                       approved SIP. 40 CFR 51.102(a)(2) and
                                                                                                            designated the LRAPA to have primary
                                                    new source review (federal major NSR).1                                                                       (c) and 260; 68 FR 2891, 2894 (Jan. 22,
                                                                                                            jurisdiction in Lane County. The
                                                    In addition, as specified in OAR 340–                                                                         2003).
                                                                                                            revisions also make clear that the
                                                    200–0020(23), categorically insignificant               LRAPA is authorized to implement state                B. Division 202: Ambient Air Quality
                                                    activities must still comply with all                   rules within Lane County, and may                     Standards and PSD Increments
                                                    applicable requirements.                                promulgate a local rule in lieu of a state
                                                       Oregon revised the definition of                                                                             Division 202 contains Oregon’s
                                                                                                            rule provided: (1) It is as stringent as the          ambient air quality standards and
                                                    ‘‘modification,’’ at OAR 340–200–                       state rule; and (2) it has been submitted
                                                    0020(93), to differentiate it from the                                                                        Prevention of Significant Deterioration
                                                                                                            to and approved by the EQC. We                        (PSD) increments. Oregon revised
                                                    terms ‘‘major modification,’’ ‘‘permit                  propose to approve the delegation of
                                                    modification,’’ and ‘‘title I                                                                                 Division 202 by removing obsolete
                                                                                                            authority language in Division 200, and               definitions and moving definitions used
                                                    modification,’’ and to make clear that it               in all other divisions, because it is
                                                    applies to a change in a portion of a                                                                         in more than one division to the general
                                                                                                            consistent with CAA section                           definitions in Division 200. At OAR
                                                    source, as well as a source in its                      110(a)(2)(E) requirements for state and
                                                    entirety. The state also simplified the                                                                       340–202–0050, Oregon added language
                                                                                                            local air agencies.                                   expressly stating that no source may
                                                    definition of ‘‘ozone precursor’’ at OAR
                                                    340–200–0020(107) to remove                                We note that the state also submitted              cause or contribute to a new violation of
                                                    redundant language pointing to the                      the ODEQ–LRAPA Stringency Analysis                    an ambient air quality standard or a PSD
                                                    reference method for measuring volatile                 and Directive, comparing the Oregon                   increment, even if the single source
                                                    organic compounds (VOCs). Oregon                        state rule revisions to the corollary rules           impact is less than the significant
                                                    made the same type of change to the                     generally applicable in Lane County.                  impact level. Oregon made this change
                                                    definition of ‘‘particulate matter’’ at                 The analysis identifies which of the                  to address a court decision vacating and
                                                    OAR 340–200–0020(110). For                              revised state rules are more stringent,               remanding regulatory text for the PM2.5
                                                    consistency, at OAR 340–200–0020(119)                   and directs the LRAPA to implement                    significant impact level. Please see
                                                    and (120), the short-hand terms for                     them, until such time as the LRAPA                    Section L below for a more detailed
                                                                                                            revises its own rules to be at least as               discussion of the basis for our
jstallworth on DSK7TPTVN1PROD with PROPOSALS




                                                    coarse and fine particulate matter,
                                                    ‘‘PM10’’ and ‘‘PM2.5,’’ were updated to                 strict. Please see Section IV below for a             determination that this change, along
                                                                                                            listing of the submitted rule revisions               with other related changes, adequately
                                                      1 This includes both the prevention of significant    that we propose to approve as also                    addresses the court decision.
                                                    deterioration (PSD) new source review permitting        applying in Lane County. The ODEQ–                      At OAR 340–202–0210, the specific
                                                    program that applies in attainment and                  LRAPA Stringency Analysis and                         PSD increments were moved from a
                                                    unclassifiable areas (40 CFR 51.166) and the
                                                    nonattainment major source new source review
                                                                                                            Directive is in Attachment B of the                   table to the text of the rule for
                                                    permitting program that applies in nonattainment        submission, and may be found in the                   readability. Oregon also clarified that
                                                    areas (40 CFR 51.165).                                  docket for this action.                               PSD increments are compared to


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                            14657

                                                    aggregate increases in pollution                        nonattainment by the EPA.2 To                          minor changes to this division, such as
                                                    concentrations from the new or                          construct or modify a major or minor                   updating references to the outdated total
                                                    modified source, over the baseline                      source in a sustainment area, the owner                suspended particulate matter standard,
                                                    concentration. The state moved ambient                  or operator may need to offset new                     and moving information from four
                                                    air quality thresholds for pollutants                   emissions with reductions from other                   tables into regulatory text. We propose
                                                    from Division 224 to this division, to                  sources, including the option of                       to approve these revisions.
                                                    centralize ambient standards and                        targeting ‘‘priority’’ sources, in that area.
                                                                                                                                                                   E. Division 208: Visible Emissions and
                                                    thresholds. Finally, Oregon                             Priority sources are defined as sources
                                                                                                                                                                   Nuisance Requirements
                                                    consolidated requirements for areas                     causing or contributing to elevated
                                                    subject to an approved maintenance                      emissions levels in the area. This is                     Division 208 contains provisions
                                                    plan, moving ambient standards and                      determined using local airshed                         regulating visible emissions, odor,
                                                    thresholds from Division 224 into a new                 information, such as emissions                         nuisance, and fugitive emissions from
                                                    section, at OAR 340–202–0225. We                        inventories and modeling results. A new                sources. Oregon made substantive
                                                    propose to approve the submitted                        major or minor stationary source                       changes to the visible emission
                                                    revisions to Division 202 as being                      seeking to construct in a sustainment                  standards at OAR 340–208–0100
                                                    consistent with CAA requirements.                       area may obtain more favorable offsets                 through 0110, supported by a
                                                                                                            from priority sources.                                 demonstration of why the state believes
                                                    C. Division 204: Designation of Air                        The reattainment area designation is                the changes continue to protect air
                                                    Quality Areas                                           designed to apply to an area that is                   quality. For all point sources, the state
                                                                                                            formally designated nonattainment by                   changed visible emission standards
                                                       This division contains provisions for                                                                       from an aggregate exception of three
                                                    the designation of air quality areas in                 the EPA, has an EPA-approved
                                                                                                            attainment plan, and also has three                    minutes in a 60-minute period to a six-
                                                    Oregon. In the submission, the state                                                                           minute block average, aligning the form
                                                                                                            years of quality-assured/quality-
                                                    removed a reference to ‘‘Indian                                                                                of and test method for Oregon’s visible
                                                                                                            controlled monitoring data showing the
                                                    Governing Bodies’’ at OAR 340–204–                                                                             emission standards with federal New
                                                                                                            area is attaining the relevant standard.
                                                    0060 because the ODEQ does not have                                                                            Source Performance Standards (NSPS).
                                                                                                            See OAR 340–204–0310. When an area
                                                    authority or jurisdiction to regulate                                                                          At the same time, Oregon made visible
                                                                                                            has met attainment planning
                                                    them. Oregon also replaced an expired                                                                          emission standards applicable to each
                                                                                                            requirements and has attained the
                                                    oxygenated gasoline requirement at                                                                             individual stack or emission point, to
                                                                                                            standard, the CAA requires that a state
                                                    OAR 340–204–0090 with an updated                                                                               preclude averaging across the source.
                                                                                                            submit, and the EPA approve, a
                                                    reference to the applicable maintenance                                                                           Oregon also made changes to phase
                                                                                                            maintenance plan for the next ten years.
                                                    plan and its associated provisions.                     The state may then request that the EPA                out less stringent visible emission limits
                                                       A significant change in this division                redesignate the area to attainment. In                 granted to certain older facilities in
                                                    is the introduction of three new                        the interim, Oregon may designate the                  operation before 1970. These sources
                                                    concepts: ‘‘sustainment areas,’’                        area a reattainment area. The Oregon                   were required to meet a 40% visible
                                                    ‘‘reattainment areas,’’ and ‘‘priority’’                rules requires that all elements of the                emission limit. However, starting in
                                                    sources. See OAR 340–204–0300                           area’s attainment plan continue to apply               2020, these sources will be required to
                                                    through 0320. Both sustainment and                      with a reattainment designation.                       meet the state’s standard 20% visible
                                                    reattainment areas are new, state-level                 However, minor sources will be subject                 emissions limit. Wood-fired boilers
                                                    designations designed to add to federal                 to less stringent state new source review              constructed or installed before 1970,
                                                    requirements. Oregon has implemented                    permitting requirements—unless the                     and not since modified, also will be
                                                    a state-level designation in the past—                  ODEQ has specifically identified a                     held to the tighter 20% visible
                                                    specifically, the maintenance area                      source as a significant contributor to air             emissions limit starting in 2020, except
                                                    designation. Now, Oregon has                            quality problems in the area, or has                   for certain, limited situations.
                                                    developed two new designations                          controlled the source and relied on the                   Oregon asserted in its SIP submittal
                                                    intended to help areas address air                      controls as part of the attainment plan.               that a visible emissions standard based
                                                    quality problems by further regulating                  The federal requirements for                           on a six-minute average is no more or
                                                    emission increases from major and                       redesignation remain in place and are                  less stringent than a standard based on
                                                    minor sources.                                          unchanged.                                             an aggregate exception of three minutes
                                                       To designate an area as sustainment                     We propose to approve the revisions                 in any hour. Oregon argued that,
                                                    or reattainment, the ODEQ will                          to Division 204 because the added rules                theoretically, either basis could be more
                                                    undertake the same process as used in                   for state-level designations are                       stringent than the other, but practically,
                                                    the past to designate a state                           consistent with CAA requirements and                   sources do not typically have
                                                    maintenance area. The process includes                  the EPA’s implementing regulations for                 intermittent puffs of smoke. Oregon also
                                                    public notice, a rule change, and                       attainment planning and major source                   claimed that changing to a six-minute
                                                    approval by the EQC. Oregon asserts                     pre-construction permitting. The                       average is appropriate because a
                                                    that the new designations and                           changes to Oregon’s major and minor                    reference compliance method has not
                                                    associated requirements are intended to                 source permitting program—and our                      been developed for the three-minute
                                                    help solve air quality issues, and do not               evaluation of those changes—are                        standard; EPA Method 9 results are also
                                                    change attainment planning                              discussed in detail in Section L below.                reported as six-minute averages; and
                                                                                                                                                                   using a three-minute standard results in
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                                                    requirements or federal requirements for                D. Division 206: Air Pollution
                                                    major stationary sources.                                                                                      additional costs for sources that also
                                                                                                            Emergencies                                            monitor visible emissions with
                                                       The sustainment area designation at                    This division establishes criteria for               continuous opacity monitoring systems
                                                    OAR 340–204–0300 is designed to apply                   identifying and declaring air pollution                (COMS).
                                                    to an area where monitored values                       episodes at levels below the levels of                    Many COMS are designed for six-
                                                    exceed, or have the potential to exceed,                significant harm. Oregon submitted                     minute averages, and must be modified
                                                    ambient air quality standards, but has                                                                         to record and report data for a three-
                                                    not been formally designated                              2 As   codified at 40 CFR part 81.                   minute standard. Oregon stated in the


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                                                    14658                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    submittal that compliance with a six-                   ODEQ otherwise determines a public                    OAR 340–210–0205, Oregon made
                                                    minute average can be determined with                   hearing is necessary. For the state’s                 changes to clarify when a Notice of
                                                    24 readings (six-minute observation                     category IV public process, which                     Construction application is required—
                                                    period), while, compliance with a three-                applies to Major NSR permitting                       with certain exceptions the state has
                                                    minute standard may require as many as                  actions, the ODEQ provides an                         specifically listed.
                                                    240 readings (60-minute observation                     informational meeting that occurs before                Oregon revised construction approval
                                                    period).                                                issuing a draft permit for public review              and approval to operate provisions at
                                                       We have evaluated the visible                        and comment. The ODEQ has revised                     OAR 340–210–0240 and 0250 to spell
                                                    emissions rule changes and Oregon’s                     the requirements for informational                    out when sources may proceed with
                                                    justification for the changes. We                       meetings to provide at least a 14-day                 construction or modification, and that
                                                    propose to approve the revised version                  public notice, prior to the scheduled                 construction approval does not mean
                                                    of OAR 340–208–0110 and the removal                     informational meeting. The revisions                  approval to operate the source, unless
                                                    of OAR 340–208–0100 because we agree                    also make clear that although the ODEQ                the source is not required to obtain an
                                                    that the changes will streamline visible                accepts, and will consider, comments                  ACDP under Division 216.
                                                    emissions and related testing and                       from the public during the                              We are proposing to approve the
                                                    monitoring requirements for sources,                    informational meeting, the ODEQ does                  revisions to Division 210 because we
                                                    impose more stringent requirements on                   not maintain an official record of the                have determined they are consistent
                                                    certain older sources, and are, overall, at             informational meeting, or respond in                  with CAA requirements, and correct or
                                                    least as protective of the ambient air                  writing to comments provided at the                   clarify existing source notification
                                                    quality standards as the existing SIP                   informational meeting.                                requirements, to help ensure that
                                                    requirements.                                              Oregon also revised this division to               changes to sources go through the
                                                       The final changes made to this                       address permitting in new state-                      appropriate approval process.
                                                    division revise fugitive emission                       designated sustainment and                            H. Division 212: Stationary Source
                                                    requirements at OAR 340–208–0200                        reattainment areas, added email                       Testing and Monitoring
                                                    through 0210. The revised rules require                 notification as an option, and specified
                                                    sources to take reasonable precautions                  where the public comment records                         This division contains general
                                                    to prevent fugitive emissions, and may                  would be made available. We note that                 requirements for source testing and
                                                    require a fugitive emissions control plan               revisions to the hearing procedures in                monitoring. Most of the revisions to this
                                                    to prevent visible emissions from                       OAR 340–209–0070 were reorganized,                    division were clarifications or updates.
                                                    leaving a facility property for more than               moving the notice and comment                         For example, Oregon revised Division
                                                    18 seconds in a six-minute period.                      requirements for informational meetings               212 to clarify that the term ‘‘stationary
                                                    Compliance is based on EPA Method 22,                   to OAR 340–209–0030.                                  source’’ in this division includes
                                                    Visual Determination of Fugitive                           We have concluded that the                         portable sources that require permits
                                                    Emissions from Material Sources and                     submitted revisions to Oregon’s public                under Division 216. This change is
                                                    Smoke Emissions from Flares. Oregon                     participation rules remain consistent                 consistent with the term as used in
                                                    also replaced the specific references to                with the CAA and federal requirements                 other divisions. Oregon also made clear
                                                    ‘‘asphalt’’ and ‘‘oil’’ in the lists of dust            for public notice of new source review                that, with respect to stack height and
                                                    suppressants and control measures with                  actions in 40 CFR 51.161 Public                       dispersion technique requirements, the
                                                    the term ‘‘other suitable chemicals,’’ to               availability of information, 40 CFR                   procedures referenced in 40 CFR 51.164
                                                    discourage the use of oil and asphalt as                51.165 Permit requirements, and 40 CFR                are the major and minor NSR review
                                                    dust suppressants.                                      51.166 Prevention of significant                      procedures used in Oregon, as
                                                       We propose to approve the revised                    deterioration of air quality, and we                  applicable.
                                                    version of OAR 340–208–0210 and the                     propose to approve them. We also                         OAR 340–212–0140 of this division
                                                    repeal of OAR 340–208–0200 because                      propose to approve the hearing                        sets forth test methods, and requires that
                                                    we have determined that the fugitive                    procedures, but not incorporate them by               sampling, testing, or measurements
                                                    emissions rule changes are consistent                   reference, to avoid confusion or                      performed pursuant to Division 212
                                                    with CAA requirements and are                           potential conflict with the EPA’s                     conform to the methods in Oregon’s
                                                    expected to improve the effectiveness of                independent authorities.                              Source Sampling Manual, Volumes I
                                                    controls and compliance with emission                                                                         and II, and Oregon’s Continuous
                                                                                                            G. Division 210: Stationary Source                    Monitoring Manual. The manuals,
                                                    limits.
                                                                                                            Notification Requirements                             revised as of 2015, have been submitted
                                                    F. Division 209: Public Participation                     Division 210 contains a registration                for approval. As discussed below in
                                                      Division 209 governs public                           program for sources not subject to one                Section X, we have concluded that the
                                                    participation in the review of proposed                 of Oregon’s operating permit programs,                revised manuals are consistent with the
                                                    permit actions. Oregon revised this                     as well as some of the requirements for               EPA’s monitoring requirements for
                                                    division to modernize and clarify public                the construction and modification of                  criteria pollutants and we propose to
                                                    notice requirements. The Oregon SIP                     sources. In OAR 340–210–0010, Oregon                  approve them for the purpose of the
                                                    provides four different levels of public                broadened the applicability of this                   limits approved into the SIP.
                                                    process, depending on the type of                       division so that it applies to ‘‘air                     A final change to this division is
                                                    permitting action, with Category I                      contaminant sources’’ and to                          Oregon’s request to remove rules that
                                                    having the least amount of public notice                ‘‘modifications of existing portable                  were approved into the Oregon SIP on
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                                                    and opportunities for public                            sources that are required to have                     January 22, 2003 (68 FR 2891). The
                                                    participation and Category IV having the                permits under OAR 340 division                        specified rules, under the compliance
                                                    most. Most new source review                            216’’—in addition to stationary sources.              assurance monitoring section, apply to
                                                    permitting actions are subject to                       Oregon also revised source registration               title V sources only and implement the
                                                    category III, for which the ODEQ                        requirements at OAR 340–210–0100 to                   requirements of 40 CFR parts 64 and 70.
                                                    provides public notice and an                           specify in more detail the information                We agree with Oregon that these rules
                                                    opportunity for a hearing at a reasonable               an owner or operator must submit to                   are not necessary for SIP approval under
                                                    time and place if requested, or if the                  register and re-register. In addition, at             section 110 of title I of the CAA, because


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                                     14659

                                                    the rules implement provisions of title                 or NESHAP and the NSPS or NESHAP                      provision cited by the petitioners—OAR
                                                    V. Therefore, we propose to approve                     exempts startups, shutdowns and                       340–028–1450 (recodified as OAR 340–
                                                    Oregon’s request to remove OAR 340–                     malfunctions as defined in the                        214–0350)—is plainly a statement of
                                                    212–0200 through 0280 from the                          applicable NSPS or NESHAP.’’ By its                   enforcement discretion, delineating
                                                    federally-approved Oregon SIP.                          terms, this provision only applies to                 factors to be considered by the ODEQ in
                                                                                                            standards in NSPS or NESHAPs, and                     determining whether to pursue state
                                                    I. Division 214: Stationary Source
                                                                                                            Oregon’s incorporation by reference of                enforcement for violations of the
                                                    Reporting Requirements
                                                                                                            the federal NSPS and NESHAP                           applicable SIP emission limits due to
                                                       This division contains Oregon’s                      standards are not included in the SIP.                excess emissions. The EPA further
                                                    provisions for reporting and                            Because this addition relates solely to               concluded that there was no language in
                                                    recordkeeping, information requests                     standards that are not in the SIP, the                this Oregon regulation suggesting that
                                                    (CAA section 114 authority), credible                   EPA is not approving this provision.                  Oregon’s determination to forgo
                                                    evidence, business confidentiality,                     The state also expanded the prohibition               enforcement by the state against a
                                                    emissions statements, and excess                        on planned startups, shutdowns, and                   source would in any way prevent the
                                                    emissions. Oregon made substantive                      scheduled maintenance—that may                        EPA or the public from demonstrating
                                                    changes to several sections of this                     result in excess emissions during                     that violations occurred and taking
                                                    division. First, at OAR 340–214–0010,                   declared air quality alerts, warning or               enforcement action. The EPA therefore
                                                    Oregon changed the definition of ‘‘large                emergencies, or during times when                     concluded that Oregon’s regulation was
                                                    source’’ to align with a recent court                   residential wood burning is curtailed in              consistent with the requirements of the
                                                    decision on the regulation of GHG                       PM10 nonattainment areas—to include                   CAA and denied the petitioner’s request
                                                    emissions from new and modified major                   sources in PM2.5 nonattainment areas.                 to require Oregon to revise its SIP
                                                    stationary sources in attainment and                       In addition, Oregon made changes to                provision. See 80 FR 33839, 33973 (final
                                                    unclassifiable areas, in addition to title              a provision in its SIP that contains                  action); 78 FR 12459, 12537 (February
                                                    V sources. Please see our discussion at                 criteria for determining whether Oregon               22, 2013) (proposed action).
                                                    Section L, below. Oregon also removed                   will take an enforcement action for
                                                    from the definition of ‘‘large source,’’                                                                         In the submittal that is the subject of
                                                                                                            excess emissions (OAR 340–214–0350).
                                                    those sources subject to a National                                                                           this proposed action, Oregon has added
                                                                                                            In the context of the EPA’s recent ‘‘SSM
                                                    Emission Standard for Hazardous Air                                                                           to OAR 340–214–0350 two criteria that
                                                                                                            SIP Action of 2015,’’ the EPA evaluated
                                                    Pollutants (NESHAP). NESHAP                                                                                   the ODEQ considers in determining
                                                                                                            the enforcement discretion provision of
                                                    reporting requirements are separate and                                                                       whether to take enforcement action: (1)
                                                                                                            OAR 340–214–0350 (re-codified from
                                                    independent of the SIP and CAA section                                                                        Whether any federal NSPS or NESHAP
                                                                                                            OAR 340–028–1450) and found it to be
                                                    110 criteria pollutant requirements, and                                                                      apply to the source in question and
                                                                                                            consistent with CAA requirements and
                                                    we propose to approve the revision.                                                                           whether the excess emission event
                                                                                                            with the EPA’s SSM policy as it applies
                                                       Oregon revised OAR 340–214–0100 of                                                                         caused a violation of the federal
                                                                                                            to SIPs.3 The EPA’s SSM SIP Action of
                                                    this division to clarify that stationary                                                                      standard,4 and (2) whether the excess
                                                                                                            2015 responded to a petition from the
                                                    sources include portable sources                                                                              emission event was due to an
                                                                                                            Sierra Club requesting that the EPA
                                                    required to have ACDPs under Division                                                                         ‘‘emergency.’’ 5 Because OAR 340–214–
                                                                                                            address concerns about specific
                                                    216. In addition, at OAR 340–214–                                                                             0350 is a true enforcement discretion
                                                                                                            provisions approved into 39 state SIPs.
                                                    0114(5), starting on July 1, 2015, owners                                                                     provision, rather than an affirmative
                                                                                                            Sierra Club’s petition alleged that
                                                    and operators of specific sources must                                                                        defense, the addition of these criteria
                                                                                                            specific provisions in these states’ SIPs
                                                    retain records of all required monitoring                                                                     does not change the EPA’s recent
                                                                                                            were inconsistent with the CAA. With
                                                    data and supporting information for five                                                                      conclusion that this provision is
                                                                                                            respect to Oregon’s SIP, the petitioner
                                                    years. Oregon also revised the section                                                                        approvable, consistent with EPA
                                                                                                            objected to OAR 340–028–1450
                                                    on disclosure of information at OAR                                                                           guidance in the SSM SIP Action of 2015
                                                                                                            (recodified as OAR 340–214–0350)
                                                    340–214–0130, to spell out that                                                                               and CAA requirements for SIP
                                                                                                            which specifies criteria to be considered
                                                    emissions data cannot be exempted                                                                             provisions.
                                                                                                            by Oregon in determining whether to
                                                    from disclosure as a trade secret. Under                pursue enforcement action for excess
                                                    OAR 340–214–0200, with respect to                       emissions.
                                                                                                                                                                     4 Unlike the provision addressing NSPS and

                                                    emission statements for VOC and NOX                                                                           NESHAP added to OAR 340–214–0300 above,
                                                                                                               In the SSM SIP Action of 2015, we                  which by its terms applies only to NSPS and
                                                    sources, Oregon clarified that ‘‘actual                 noted that Oregon’s provision provides                NESHAP, which are not part of the SIP, the
                                                    emissions include, but are not limited,                 that ‘‘[i]n determining whether to take               provision here is not limited to NSPS and NESHAP
                                                    to routine process emissions, fugitive                  enforcement action for excess                         standards. For example, a SIP provision and an
                                                    emissions, and excess emissions from                                                                          NSPS could each have an opacity limit of 20% that
                                                                                                            emissions, DEQ considers, based upon                  applies to the same emission unit at a facility. The
                                                    maintenance, startups and shutdowns,                    information submitted by the owner or                 fact that the NSPS limit does not apply during
                                                    equipment malfunction, and other                        operator,’’ a list of factors. As discussed           startup of the emission unit could be a relevant
                                                    activities.’’ We propose to approve these               in the SSM SIP Action of 2015, the EPA                factor for Oregon to consider in determining
                                                    revisions because they are consistent                                                                         whether to take an enforcement action for emissions
                                                                                                            has interpreted the CAA to allow states               in excess of the SIP opacity limit during startup.
                                                    with CAA requirements.                                  to elect to have SIP provisions that                     5 ‘‘Emergency’’ is defined as any situation arising
                                                       Oregon made several revisions to the                 pertain to the exercise of enforcement                from sudden and reasonably unforeseen events
                                                    excess emissions and emergency                          discretion by state personnel. See 80 FR              beyond the control of the owner or operator,
                                                    provision requirements in Division 214,                                                                       including acts of God, which situation requires
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                                                                                                            33839, 33980. We explained that the                   immediate corrective action to restore normal
                                                    at OAR 340–214–0300 through 0360,
                                                                                                                                                                  operation, and that causes the source to exceed a
                                                    that are currently in the SIP, and these                   3 State Implementation Plans: Response to          technology-based emission limit under the permit,
                                                    revisions are included in the submittal                 Petition for Rulemaking; Restatement and Update of    due to unavoidable increases in emissions
                                                    that is the subject of this proposed                    EPA’s [Startup, Shutdown and Malfunction] SSM         attributable to the emergency. An emergency does
                                                    action. First, in OAR 340–214–0300, the                 Policy Applicable to SIPs; Findings of Substantial    not include noncompliance to the extent caused by
                                                                                                            Inadequacy; and SIP Calls to Amend Provisions         improperly designed equipment, lack of
                                                    state clarified that ‘‘emissions in excess              Applying to Excess Emissions During Periods of        preventative maintenance, careless or improper
                                                    of applicable standards are not excess                  Startup, Shutdown and Malfunction: Final Rule.’’      operation, or operator error. See OAR 340–200–
                                                    emissions if the standard is in an NSPS                 (June 12, 2015, 80 FR 33839).                         020(50).



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                                                    14660                  Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                       Further, Oregon changed an                           J. Division 216: Air Contaminant                         General ACDP requirements at OAR
                                                    affirmative defense provision for excess                Discharge Permits                                     340–216–0060 were updated to refer to
                                                    emissions (OAR 340–214–0360) that is                                                                          the appropriate public notice
                                                    in the current SIP. OAR 340–214–0360                       Oregon’s Air Contaminant Discharge                 procedures, reference the fee class for
                                                                                                            Permit (ACDP) program is both Oregon’s                specific source categories, and confirm
                                                    provides, by its title and language, an
                                                                                                            federally-enforceable non-title V state               the procedures the ODEQ will use to
                                                    affirmative defense to excess emissions
                                                                                                            operating permit program, and also the                rescind a source’s General ACDP if the
                                                    due to an ‘‘emergency.’’ The language in
                                                                                                            administrative mechanism used to                      source no longer qualifies and must
                                                    this provision closely follows language                 implement the notice of construction
                                                    in regulations that govern title V                                                                            obtain a Simple or Standard ACDP
                                                                                                            and new source review programs. There                 instead. Oregon also changed the rule to
                                                    operating permit programs, and states                   are six types of ACDPs under Oregon’s
                                                    are currently authorized under the 40                                                                         make clear that the ODEQ may rescind
                                                                                                            rules: Construction, General, Short Term              an individual source’s assignment to a
                                                    CFR part 70 regulations to include this                 Activity, Basic, Simple, and Standard.                General Permit. When the ODEQ
                                                    provision in title V permits. See 40 CFR                The types of ACDPs have not changed,                  notifies the source that the department
                                                    70.6(g).6 The EPA most recently                         but the ODEQ has made some changes                    intends to rescind the permit, the source
                                                    approved this provision into the Oregon                 and clarifications to the criteria and                has 60 days to submit an application for
                                                    SIP on December 27, 2011 (76 FR                         requirements for the various ACDPs.                   a Simple or Standard ACDP. Oregon
                                                    80747). Although this provision was not                 Oregon also revised application                       also revised General ACDP Attachments
                                                    a subject of the SIP call, the SSM SIP                  requirements to set application renewal               to clarify public notice requirements
                                                    Action of 2015 expressly concluded that                 deadlines, and to clarify the required                and fees.
                                                    affirmative defense provisions are                      contents of applications.                                For Simple ACDPs at OAR 340–216–
                                                    inconsistent with CAA requirements for                     The applicability section at OAR 340–              0064, it is now clear that the ODEQ may
                                                    SIPs and cannot be approved. See 80 FR                  216–0020 references the table of                      determine a source ineligible for a
                                                    at 33852.                                               applicability criteria for the various                Simple ACDP with generic emission
                                                       Oregon revised OAR 340–214–0360 so                   types of permits in OAR 340–216–8010.                 limits, and instead, require the source
                                                    that it provides an affirmative defense                 The associated fees are listed at OAR                 obtain a Standard ACDP with source-
                                                    available only in penalty actions due to                340–216–8020. Oregon made clarifying                  specific emission limits, as necessary.
                                                    noncompliance with technology-based                     changes throughout the table in OAR                   Oregon has also clarified the public
                                                                                                            340–216–8010, and made some                           notice requirements and fees for Simple
                                                    emission limits in title V operating
                                                                                                            revisions to the type of ACDP (Basic,                 ACDPs and removed redundant
                                                    permits; as revised, the affirmative
                                                                                                            General, Simple, or Standard) each                    requirements from the Simple ACDP
                                                    defense would no longer be available for                                                                      section that are also in the applicability
                                                    violations of SIP requirements. Oregon’s                source category is required to obtain
                                                                                                            prior to construction and operation.                  and jurisdiction section.
                                                    revision makes OAR 340–214–0360                                                                                  The Standard ACDP requirements at
                                                    consistent with current requirements for                Overall, Oregon slightly expanded the
                                                                                                            list of sources required to obtain Basic,             OAR 340–216–0066 were updated to lay
                                                    title V operating permit programs.                                                                            out the different application
                                                    Oregon has not submitted the revised                    General, Simple, or Standard ACDPs,
                                                                                                            with one exception. Oregon removed                    requirements for sources seeking this
                                                    version of section 0360 for approval into                                                                     type of permit when they are subject to
                                                    the SIP and instead, as part of the                     the requirement that GHG-only sources
                                                                                                                                                                  federal major versus minor NSR. Oregon
                                                                                                            obtain a Standard ACDP, and pay the
                                                    current submittal, has requested that the                                                                     also changed this section to allow
                                                                                                            associated permitting fees, consistent
                                                    EPA remove the old version of OAR                                                                             sources with multiple activities or
                                                                                                            with the federal court decision
                                                    340–214–0360 from the SIP. The                                                                                processes at a single site, covered by
                                                                                                            described below in Section L.
                                                    removal of this affirmative defense                                                                           more than one General ACDP or that has
                                                    provision from the SIP is consistent                       Oregon also made revisions, mostly                 multiple processes, to obtain a Standard
                                                    with EPA guidance in the SSM SIP Call                   clarifying, to the requirements for                   ACDP.
                                                    and CAA requirements for SIP                            applying for and issuing certain types of                With respect to processing permits,
                                                    provisions. We are therefore proposing                  permits, as well as the contents of the               Oregon’s provision at OAR 340–216–
                                                    to approve the removal of this title V                  various permits. For Construction                     0082 now expressly provide that
                                                                                                            ACDPs at OAR 340–216–0052, Oregon                     sources with expired ACDP permits may
                                                    affirmative defense provision from the
                                                                                                            added a qualifier to the rule that                    continue operating under the expired
                                                    Oregon SIP.
                                                                                                            construction commence within 18                       permit if they have submitted a timely
                                                       We note that Oregon also repealed the                months after the permit is issued. This               and complete renewal application.
                                                    sulfur dioxide emission inventory                       deadline now applies only if a source is              Sources may also request a contested
                                                    requirements at OAR 340–214–0400                        subject to federal major NSR and certain              case hearing, if the ODEQ revokes a
                                                    through 0430. These provisions are not                  state major NSR permitting (discussed                 permit or denies a permit renewal. The
                                                    part of the federally-approved Oregon                   in more detail below). Oregon also                    ODEQ has clarified in a written
                                                    SIP. These provisions were repealed as                  added language to the public notice                   supplement that department-initiated
                                                    a matter of state law because they were                 requirements for a modified                           modifications at OAR 340–216–0084
                                                    replaced with more stringent sulfur                     Construction ACDP, making clear when                  follow the public notice procedures for
                                                    dioxide limits established as a part of                 public notice as a Category I permit                  the relevant ACDP permit type spelled
                                                    the state’s regional haze plan (July 5,                 action is appropriate, as opposed to a                out in Division 209. Based on the
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                                                    2011; 76 FR 38997).                                     Category II permit action under OAR                   evaluation above and this clarification
                                                                                                            340 Division 209. Oregon spelled out                  from the ODEQ, we propose to approve
                                                      6 The EPA proposed changes to federal title V         that, although the construction permit                the revisions to Division 216.
                                                    regulations on June 14, 2016 (81 FR 38645). The         itself expires, the requirements remain
                                                    proposed changes would remove this affirmative          in effect and must be added to the                    K. Division 222: Stationary Source Plant
                                                    defense from the title V rules. If finalized, states
                                                                                                            subsequent operating permit (ACDP or                  Site Emission Limits
                                                    would be required to make changes to their title V
                                                    programs, where applicable, to conform to the           Title V operating permit). See OAR 340–                 This division contains the Oregon
                                                    revised federal title V regulations.                    216–0082.                                             program for managing airshed capacity


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                            14661

                                                    through a Plant Site Emission Limit                     Oregon also updated the source-specific               how unassigned emissions are to be
                                                    (PSEL). PSELs are used to protect                       annual PSEL provision, at OAR 340–                    treated. The rule was revised to state
                                                    ambient air quality standards, prevent                  222–0041, to account for PM2.5 and                    that a source may not use emissions that
                                                    significant deterioration of air quality,               major and State NSR requirements. We                  are removed from the netting basis—
                                                    and to ensure protection of visibility.                 note that the current SIP-approved rule               including emission reductions required
                                                    Establishing such a limit is a mandatory                includes provisions at OAR 340–222–                   by rule, order or permit condition—for
                                                    step in the Oregon permitting process. A                0041(3)(b) for PSEL increases that were               netting any future permit actions.
                                                    PSEL is designed to be set at the actual                not subject to New Source Review. The                    Oregon also revised OAR 340–222–
                                                    baseline emissions from a source plus                   revised rule revokes those provisions                 0060, applicable to sources of hazardous
                                                    approved emissions increases and                        and instead makes these PSEL increases                air pollutants, and submitted it for
                                                    minus required emissions reductions.                    subject to the new State New Source                   approval. However, the provision is not
                                                    This design is intended to maintain a                   Review requirements in Division 224                   appropriate for SIP approval because it
                                                    more realistic emissions inventory.                     (see new applicability provision in OAR               is related to CAA section 112 and
                                                    Oregon uses a fixed baseline year of                    340–224–0010(2)(b)(B)). The                           hazardous air pollutants, not CAA
                                                    1977 or 1978 (or a prior year if more                   comprehensive requirements for                        section 110 and the criteria pollutants.
                                                    representative of normal operation) and                 approval of such PSEL increases in                    Oregon also updated OAR 340–222–
                                                    factors in all approved emissions                       sustainment, nonattainment,                           0090, which addresses the impact on
                                                    increases and required emissions                        reattainment, maintenance, and                        PSEL calculations and permitting
                                                    decreases since baseline, to set the                    attainment/unclassifiable areas are as                requirements when sources combine,
                                                    allowable emissions in the PSEL.                        stringent as the current requirements in              split, and change primary Standard
                                                    Increases and decreases since the                       OAR 340–222–0041(b)(A) through (D).                   Industrial Code. The changes make clear
                                                    baseline year do not affect the baseline,                  Oregon also revised the short-term                 that sources must qualify to combine,
                                                    but are included in the difference                      PSEL requirements at OAR 340–222–                     and that it will impact the netting basis
                                                    between baseline and allowable                          0042 to spell out the process a source                and SER, and trigger new source review
                                                    emissions.                                              must follow to request an increase in a               and recordkeeping requirements, if
                                                       ‘‘Netting basis’’ is a concept in                    short-term PSEL—and when that source                  applicable.
                                                    Oregon’s program that defines both the                  must obtain offsets, or an allocation,                   With the exception noted below, we
                                                    baseline emissions from which                           from an available growth allowance in                 are proposing to approve the submitted
                                                    increases are measured—to determine if                  the area.                                             changes to Division 222 because we
                                                    changes are subject to review—as well                      At OAR 340–222–0046, Oregon                        believe the revisions to the PSEL
                                                    as the process for re-establishing the                  clarified the process for setting the                 provisions are intended to clarify and
                                                    baseline, after changes have been                       initial netting basis for PM2.5 and how               strengthen the rules. We are not
                                                    through the new source review                           potential increases are limited. The state            approving OAR 340–222–0060 because
                                                    permitting process.                                     also made changes to spell out how a                  it is related to CAA section 112 and
                                                       As noted above, Oregon’s PSEL                        source’s netting basis may be reduced—                hazardous air pollutants, not CAA
                                                    program is used, in part, to implement                  when a rule, order or permit condition                section 110 and the criteria pollutants.
                                                    NSR permitting. For major NSR, if a                     requires the reductions—and how
                                                                                                                                                                  L. Division 224: New Source Review
                                                    PSEL is calculated at a level greater than              unassigned emissions and emissions
                                                    an established significant emission rate                reduction credits are to be addressed. In                Parts C and D of title I of the CAA,
                                                    (SER) over the baseline actual emission                 addition, Oregon clarified that a source              42 U.S.C. 7470–7515, set forth
                                                    rate, an evaluation of the air quality                  may retain a netting basis if that source             preconstruction review and permitting
                                                    impact and major NSR permitting are                     relocates to a different site, as opposed             program requirements that apply to new
                                                    required. If not, the PSEL is set without               to an adjacent site. However, it is only              and modified major stationary sources
                                                    further review (a construction permit                   allowed if the ODEQ determines the                    of air pollutants, known as major New
                                                    may also be required). For minor NSR                    different site is within or affects the               Source Review (major NSR). The CAA
                                                    (State NSR), a similar calculation is                   same airshed, and that the time span                  major NSR programs include a
                                                    conducted. If the difference is greater                 between operation at the old site and                 combination of air quality planning and
                                                    than the SER, an air quality analysis is                new sites is less than six months.                    air pollution control technology
                                                    required to evaluate whether ambient                       At OAR 340–222–0048, Oregon                        program requirements. States adopt
                                                    air quality standards and increments are                consolidated baseline period and                      major NSR programs as part of their SIP.
                                                    protected. The air quality analysis                     baseline emission rate provisions, and                Part C is the Prevention of Significant
                                                    results may require the source to reduce                indicated when a baseline emission rate               Deterioration (PSD) program, which
                                                    the airshed impact and/or comply with                   may be recalculated—limited to                        applies in areas that meet the NAAQS
                                                    a tighter emission limit.                               circumstances when more accurate or                   (attainment areas), as well as in areas for
                                                       Oregon submitted a number of                         reliable emission factor information                  which there is insufficient information
                                                    changes to the PSEL requirements in                     becomes available or when regulatory                  to determine whether the area meets the
                                                    this division. Many of the changes are                  changes require that additional                       NAAQS (unclassifiable areas). Part D is
                                                    organizational, centralizing                            emissions units be addressed. Changes                 the Nonattainment New Source Review
                                                    requirements related to PSELs in                        were also made to OAR 340–222–0051,                   (major nonattainment NSR) program,
                                                    Division 222. We propose to approve                     which addresses actual emissions, and                 which applies in areas that are not in
                                                    the organizational changes. Other                       how to appropriately calculate the mass               attainment of the NAAQS
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                                                    submitted changes are substantive.                      emissions of a pollutant from an                      (nonattainment areas). The EPA
                                                    Oregon revised the criteria for                         emissions source during a specified                   regulations for SIPs implementing these
                                                    establishing PSELs at OAR 340–222–                      time period. The state revised this                   programs are contained in 40 CFR
                                                    0035 through 0090 by consolidating                      provision to account for the changes in               51.165 and 51.166, and appendix S to
                                                    requirements from other sections into                   the program that differentiate major                  part 51. As discussed above, regulations
                                                    these provisions, and revising them to                  NSR from State NSR.                                   addressing the EPA’s minor new source
                                                    take into account the differentiated                       We note that Oregon also clarified                 review (NSR) requirements are set forth
                                                    major and State NSR requirements.                       OAR 340–222–0055, which establishes                   at 40 CFR 51.160 through 164. States


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                                                    14662                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    generally have more flexibility in                      but that now have air quality data                    applicability. Therefore, as required by
                                                    designing minor NSR programs. Minor                     showing the area is attaining the                     the federal PSD program, a source is
                                                    NSR programs, however, must still                       NAAQS. Key changes to the Oregon                      now subject to the Oregon Major NSR
                                                    ensure that emissions from the                          Major NSR and State NSR programs are                  requirements for GHGs in attainment
                                                    construction or modification of a                       discussed below.                                      and unclassifiable areas only when the
                                                    facility, building, structure, or                                                                             source is subject to Oregon Major NSR
                                                                                                            OAR 340–224–0010 Applicability,
                                                    installation (or any combination thereof)                                                                     requirements anyway for one or more
                                                                                                            General Prohibitions, General
                                                    will not interfere with attainment and                                                                        criteria pollutants. As specified in the
                                                                                                            Requirements, and Jurisdiction
                                                    maintenance of the NAAQS, or violate                                                                          federal PSD regulations, Oregon’s rules
                                                    an applicable portion of a control                         Oregon has narrowed the scope of                   continue to require that sources of GHGs
                                                    strategy approved into the SIP.                         sources that are subject to Oregon Major              subject to Oregon Major NSR in
                                                       Oregon’s major NSR program has long                  NSR in nonattainment and maintenance                  attainment and unclassifiable areas for a
                                                    differed from the federal major NSR                     areas by increasing the thresholds, from              criteria pollutant, are also subject to
                                                    programs in several respects. Oregon’s                  the significant emission rate (SER) to the            Oregon Major NSR for GHGs.
                                                    program does not subject the same                       major source thresholds in the CAA                       Oregon also made clear in this section
                                                    sources and modifications to major NSR                  specified for the current nonattainment               that a source is subject to Division 224
                                                    as would the EPA’s rules. Oregon’s                      areas in Oregon. See OAR 340–200–                     requirements for the designated area in
                                                    program has had lower major source                      0020(66)(d) and OAR 340–224–0010(b).                  which the source is located—for each
                                                    thresholds for sources in nonattainment                 At the same time, Oregon’s State NSR                  regulated pollutant, including
                                                    and maintenance areas. The program                      requirements under Division 224 apply                 precursors. Finally, Oregon spelled out
                                                    also requires fugitive emissions to be                  to the construction of new sources with               that sources subject to Division 224
                                                    included in applicability determinations                emissions of a regulated air pollutant at             must not begin actual construction,
                                                    for all new major sources and                           or above the SER, as well as increases                continue construction, or operate
                                                    modifications to existing major sources.                in emissions of a regulated pollutant                 without complying with the
                                                    However, Oregon also utilizes a PSEL                    from existing sources that equal or                   requirements of Division 224 and
                                                    approach to defining ‘‘major’’                          exceed the SER over the netting basis.                obtaining an ACDP permit authorizing
                                                    modifications, rather than the                             Oregon has divided its State NSR                   construction or operation.
                                                    contemporaneous net emissions                           program into two parts: Type A, which
                                                                                                            generally applies in nonattainment,                   OAR 340–224–0025 Major
                                                    increase approach used in the EPA’s
                                                                                                            reattainment, and maintenance areas,                  Modification
                                                    main, non-PAL major NSR program. The
                                                    EPA has previously determined that,                     and Type B, for attainment,                              Importantly, Oregon moved the
                                                    over all, Oregon’s major NSR program is                 unclassifiable, and sustainment areas.                definition of ‘‘major modification’’ from
                                                    at least as stringent as the EPA’s major                Sources subject to Type A State NSR                   Division 200 to Division 224, to reflect
                                                    NSR program and meets the                               remain subject to many of the same                    that the former definition was really a
                                                    requirements of 40 CFR 51.165 and                       requirements that apply to such sources               procedure for determining whether a
                                                    51.166. See 76 FR 80747, 80748                          under Oregon’s current SIP-approved                   major modification has or will occur,
                                                    (December 27, 2011) (final action); 76                  program in nonattainment 7 and                        rather than a true definition. The
                                                    FR 59090, 59094 (Sept. 23, 2011)                        maintenance areas, whereas sources                    revised definition and procedure are
                                                    (proposed action).                                      subject to Type B State NSR are subject               intended to better explain how
                                                       Under Oregon’s SIP-approved                          to requirements equivalent to the minor               emissions increases and decreases are
                                                    program, to which the state has made                    NSR requirements under Oregon’s PSEL                  tracked to determine whether a major
                                                    changes, both federal major sources and                 rule at OAR 340–222–0041 in its current               modification has, or will, occur.
                                                    large minor sources have been covered                   SIP.8 Because Oregon’s changes to the                    Oregon also specified that emissions
                                                    by this Division. The submitted changes                 definition of ‘‘federal major source’’ in             from categorically insignificant
                                                    to Division 224 revise this approach and                nonattainment areas are consistent with               activities, aggregate insignificant
                                                    establish distinct components within                    the federal definition of ‘‘major                     emissions, and fugitive emissions must
                                                    Division 224, referred to as Major New                  stationary source’’ at 40 CFR 51.165 for              be included in determining whether a
                                                    Source Review (Oregon Major NSR—                        the designated areas in Oregon, and                   major modification has occurred. In
                                                    sections 0045 through 0100) and State                   because Oregon has retained most of the               addition, the state clarified that major
                                                    New Source Review (State NSR—                           characteristics of the Oregon’s SIP-                  modifications for ozone precursors, or
                                                    sections 0245 through 0270) to help                     approved Major NSR permitting                         PM2.5 precursors, also constitute major
                                                    clarify the requirements that apply to                  program for Type A State NSR, the EPA                 modifications for ozone and PM2.5,
                                                    federal major sources and larger minor                  is proposing to approve these revisions.              respectively. Finally, Oregon added
                                                    sources. Pre-construction review and                       The state also made revisions here,                language stating that the PSEL, netting
                                                    permitting of other minor sources                       and in several other places in its rules,             basis, and emissions changes must be
                                                    continue to be covered in Division 210                  to be consistent with revisions to the                recalculated when more accurate or
                                                    Stationary Source Notification                          federal PSD rules made in response to                 reliable emissions information becomes
                                                    Requirements, Division 216 Air                          a Supreme Court decision 9 regarding                  available to determine whether a major
                                                    Contaminant Discharge Permits, and                      the regulation of GHGs (May 7, 2015, 80               modification has occurred.
                                                    Division 222 Plant Site Emission Limits.                FR 26183). Specifically, Oregon revised
                                                       As discussed above, Oregon has also                  definitions and procedures in Divisions               OAR 340–224–0030 New Source
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                                                    created two new state designations.                     200, 214, 216, 222 and 224 to remove                  Review Procedural Requirements
                                                    Sustainment areas are state-designated                  GHG-only sources from PSD                               Oregon revised this section to account
                                                    areas that are violating or close to                                                                          for differing Oregon Major NSR and
                                                                                                              7 Key changes are discussed below in the
                                                    violating the NAAQS but which are not                                                                         State NSR procedures. These revisions
                                                                                                            discussion of State NSR.
                                                    formally designated nonattainment by                      8 Sources in sustainment areas subject to OAR
                                                                                                                                                                  include when the ODEQ will determine
                                                    the EPA. Reattainment areas are state-                  340–224–0245(2) are also subject to Type A NSR.       whether an application is complete,
                                                    designated areas that have been                           9 Utility Air Regulatory Group v. Environmental     when a final determination will be
                                                    designated nonattainment by the EPA                     Protection Agency, 134 S.Ct. 2427 (2014).             made, when construction is permitted,


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                                  14663

                                                    how to revise a permit and extend it,                   classified as attainment/unclassifiable                 NSR Program for Particulate Matter Less
                                                    and when and how the ODEQ will                          by the EPA but have air quality either                  Than 2.5 Micrometers (PM2.5)’’ (the 2008
                                                    terminate an NSR permit. With respect                   violating the NAAQS or just below the                   NSR PM2.5 Rule),11 promulgated NSR
                                                    to the provision in the federal PSD                     NAAQS) must meet PSD requirements                       requirements in both nonattainment
                                                    regulations authorizing extensions to                   for each sustainment pollutant, but must                areas (nonattainment NSR) and
                                                    the 18-month construction time                          also satisfy additional requirements for                attainment/unclassifiable areas (PSD).
                                                    limitation in 40 CFR 52.21(r)(2) ‘‘upon                 obtaining offsets and demonstrating a                   The court concluded that the EPA had
                                                    a satisfactory showing that an extension                net air quality benefit to address the air              improperly based the implementation
                                                    is justified,’’ Oregon revised its                      quality problems in the area, as                        rule solely upon the requirements of
                                                    extension provisions to be consistent                   discussed in more detail below. Because                 part D, subpart I, of the CAA, and had
                                                    with recent EPA guidance. This                          such areas are designated as attainment/                failed to address the requirements of
                                                    guidance set out the EPA’s views on                     unclassifiable by the EPA, requiring                    part D, subpart 4, which establishes
                                                    what constitutes an adequate                            compliance with Oregon’s PSD                            additional provisions for particulate
                                                    justification for an extension of the 18-               requirements meets federal                              matter nonattainment areas. The court
                                                    month timeframe under 40 CFR                            requirements. The additional                            ordered the EPA to ‘‘repromulgate these
                                                    52.21(r)(2) for commencing construction                 requirements for obtaining offsets and                  rules pursuant to subpart 4 consistent
                                                    of a source that has been issued a PSD                  demonstrating a net air quality benefit                 with this opinion.’’ Id. at 437.
                                                    permit. See Memorandum from Stephen                     go beyond CAA requirements for
                                                    D. Page, Director of EPA’s Office of Air                attainment/classifiable areas and are                      As a result of the court’s decision, the
                                                    Quality Planning and Standards, to                      thus approvable.                                        EPA withdrew its guidance for
                                                    Regional Air Division Directors, Region                                                                         implementing the 2006 PM2.5
                                                                                                            Major NSR in Nonattainment Areas                        standard 12 because the guidance was
                                                    1–10, entitled Guidance on Extension of
                                                    Prevention of Significant Deterioration                   For new sources and modifications                     based largely on the remanded rule
                                                    (PSD) Permits under 40 CFR 52.21(r)(2),                 subject to Oregon Major NSR in                          promulgated to implement the 1997
                                                    dated January 31, 2014 (Extension                       nonattainment areas, Oregon                             PM2.5 standard.13 On June 2, 2014, the
                                                    Guidance). In addition, Oregon                          reorganized and clarified the                           EPA promulgated the Identification of
                                                    extended the time period for making a                   requirements, including that they apply                 Nonattainment Classification and
                                                    final determination on an Oregon Major                  for each pollutant for which the area is                Deadlines for Submission of State
                                                    NSR or Type A State NSR permit from                     designated nonattainment. Lowest                        Implementation Plan (SIP) Provisions
                                                    six months to one year, to reflect the                  Achievable Emission Rate (LAER) and                     for the 1997 Fine Particle (PM2.5)
                                                    more complex nature of such permitting                  offsets continue to be required for such                National Ambient Air Quality Standards
                                                    actions. The one-year time-frame for                    sources and modifications. Oregon’s                     (NAAQS) and 2006 PM2.5 NAAQS (79
                                                    permit issuance is consistent with the                  submitted revisions tighten offsets                     FR 31566). This rule promulgated
                                                    EPA’s requirements for major NSR                        required in nonattainment areas (except                 classifications and deadlines under
                                                    permitting. See 40 CFR 52.21(q)(2).                     with respect to ozone). Oregon’s rules                  subpart 4, part D, title I of the CAA for
                                                                                                            now initially require 1.2:1 offsets to                  2006 PM2.5 nonattainment areas,
                                                    OAR 340–224–0038 Fugitive and                           emissions in non-ozone areas. If offsets                including two areas in Oregon,
                                                    Secondary Emissions                                     are obtained from priority sources in the               specifically the Klamath Falls and
                                                      This section was moved and amended                    area, the ratio may be reduced to 1:1,                  Oakridge PM2.5 nonattainment areas. On
                                                    to account for State NSR requirements.                  equivalent to the federal requirement in                August 24, 2016, the EPA finalized the
                                                    For sources subject to Oregon Major                     40 CFR 51.165(a)(9)(i). Oregon’s                        Fine Particulate Matter National
                                                    NSR and Type A State NSR, fugitive                      revisions also tighten requirements for                 Ambient Air Quality Standards: State
                                                    emissions are included in the                           sources seeking construction permit                     Implementation Plan Requirements (81
                                                    calculation of emission rates and subject               extensions, and limits extension                        FR 58010). The EPA has now set revised
                                                    to the same control requirements and                    requests to two 18-month periods, with                  requirements for PM2.5 nonattainment
                                                    analyses required for emissions from                    certain additional review and re-                       areas, including new rules for major
                                                    identifiable stacks or vents. Secondary                 evaluation steps. We note that beyond                   new and modified sources. The EPA
                                                    emissions are not included in potential                 the federal rules, Oregon’s rules extend                also stated its intent to provide states
                                                    to emit calculations for Oregon Major                   BACT and offset requirements to new                     with guidance regarding precursor
                                                    NSR or Type A State NSR, but once a                     and modified minor sources in                           demonstrations to supplement the new
                                                    source is subject to Oregon Major NSR                   nonattainment areas.                                    rules. Because these changes only
                                                    or Type A State NSR, secondary                            The EPA is proposing limited, rather                  recently became effective on October 24,
                                                    emissions must be considered in the                     than full, approval of the Oregon Major                 2016, and the EPA’s guidance is still
                                                    required air quality impact analysis                    NSR program for nonattainment areas                     forthcoming, we intend to work with
                                                    under Divisions 224 and 225.                            because, although the submitted                         Oregon to address the requirements of
                                                                                                            revisions strengthen the existing SIP-                  subpart 4 for PM2.5 in a separate, future
                                                    340–224–0045 to 340–224–0070 Major                      approved program, we cannot fully                       action. In this action, as stated above,
                                                    NSR                                                     evaluate the program for the following                  we propose a limited approval of the
                                                      Oregon has specified Oregon Major                     reasons. On January 4, 2013, the U.S.                   revisions to the Oregon Major NSR
                                                    NSR requirements for each of the                        Court of Appeals for the District of                    program in nonattainment areas as
                                                                                                            Columbia, in Natural Resources Defense
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                                                    following designations: Sustainment,
                                                    nonattainment, reattainment,                            Council (NRDC) v. EPA,10 issued a                         11 73FR 28321 (May 16, 2008).
                                                    maintenance, and attainment/                            decision that remanded the EPA’s 2007                     12 Memorandum    from Stephen D. Page,
                                                    unclassifiable.                                         and 2008 rules implementing the 1997                    Implementation Guidance for the 2006 24-Hour
                                                                                                            PM2.5 NAAQS. Relevant here, the EPA’s                   Fine Particulate (PM2.5) National Ambient Air
                                                    Major NSR in Sustainment Areas                          2008 implementation rule addressed by                   Quality Standards (Mar. 2, 2012).
                                                                                                                                                                      13 Memorandum from Stephen D. Page,
                                                      New sources and modifications                         the court decision, ‘‘Implementation of                 Withdrawal of Implementation Guidance for the
                                                    subject to Oregon Major NSR in                                                                                  2006 24-Hour Fine Particle (PM2.5) National
                                                    sustainment areas (areas that are                         10 706   F.3d 428 (D.C. Cir.).                        Ambient Air Quality Standards (Jun. 6, 2013).



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                                                    14664                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    strengthening the current federally-                    PM2.5 Implementation Rule revising the                 regulations. Oregon also revised the
                                                    approved program.                                       federal significant monitoring                         definition of ‘‘significant impact levels’’
                                                                                                            concentration (SMC) and SILs for PM2.5                 or ‘‘SIL’’ in state rules, removed the
                                                    Major NSR in Reattainment Areas
                                                                                                            (75 FR 64864). On January 22, 2013, the                vacated language and added text to
                                                       In reattainment areas (areas meeting                 U.S. Court of Appeals for the District of              make clear that ‘‘no source may cause or
                                                    the NAAQS but not yet redesignated to                   Columbia, in Sierra Club v. EPA,14                     contribute to a new violation of an
                                                    attainment), new sources and                            issued a judgment that, among other                    ambient air quality standard or PSD
                                                    modifications subject to Oregon Major                   things, vacated the provisions adding                  increment even if the single source
                                                    NSR must continue to meet all                           the PM2.5 SMC to the federal regulations               impact is less than the significant
                                                    nonattainment Oregon Major NSR                          at 40 CFR 51.166(i)(5)(i)(c) and                       impact level.’’ We are proposing to
                                                    requirements for the reattainment                       52.21(i)(5)(i)(c). In its decision, the court          approve Oregon’s revisions as consistent
                                                    pollutant. In addition, to ensure air                   held that the EPA did not have the                     with the court decision.
                                                    quality does not again deteriorate,                     authority to use SMCs to exempt permit                    Oregon also revised its PSD rules to
                                                    Oregon now requires that sources                        applicants from the statutory                          address a court decision vacating
                                                    subject to Oregon Major NSR also meet                   requirement in CAA section 165(e)(2)                   provisions of EPA’s 2011 biogenic
                                                    other requirements for each                             that ambient monitoring data for PM2.5                 deferral. In 2011, the EPA revised the
                                                    reattainment pollutant. Specifically, the               be included in all PSD permit                          definition of ‘‘subject to regulation’’ at
                                                    owner or operator of the source must                    applications. Although the PM2.5 SMC                   40 CFR 52.21(b)(49)(ii)(a) to defer PSD
                                                    demonstrate the source will not cause or                was not a required element, where a                    permitting requirements for carbon
                                                    contribute to a new violation of the                    state program contained an SMC and                     dioxide (CO2) emissions from bioenergy
                                                    ambient air quality standard or PSD                     applied it to allow new permits without                and other biogenic sources for three
                                                    increment by conducting an air quality                  requiring ambient PM2.5 monitoring                     years. See Deferral for CO2 Emissions
                                                    analysis as outlined in Division 225.                   data, the provision would be                           from Bioenergy and Other Biogenic
                                                    Major NSR in Maintenance Areas                          inconsistent with the court’s opinion                  Sources under the Prevention of
                                                                                                            and CAA section 165(e)(2).                             Significant Deterioration (PSD) and Title
                                                       In maintenance areas, as under                          At the EPA’s request, the decision
                                                    Oregon’s current federally-approved                                                                            V Programs; Final Rule (July 20, 2011,
                                                                                                            also vacated and remanded the portions                 76 FR 43490) (Biogenic CO2 Deferral
                                                    SIP, new sources and modifications                      of the 2010 PSD PM2.5 Implementation
                                                    subject to Oregon Major NSR must                                                                               Rule)). On July 12, 2013, the U.S. Court
                                                                                                            Rule that revised 40 CFR 51.166 and 40                 of Appeals for the District of Columbia,
                                                    continue to comply with Oregon Major                    CFR 52.21 related to SILs for PM2.5. The
                                                    NSR requirements for attainment/                                                                               in Center for Biological Diversity v.
                                                                                                            EPA requested this vacatur and remand                  EPA,15 vacated the provisions of the
                                                    unclassifiable areas (i.e., PSD) and also               of two of the three provisions in the
                                                    conduct a demonstration or obtain                                                                              Biogenic CO2 Deferral Rule. The deferral
                                                                                                            EPA regulations that contain SILs for                  expired on July 21, 2014, and by its
                                                    allowances to ensure a net air quality                  PM2.5 because the wording of these two
                                                    benefit in the area. Rather than setting                                                                       terms is no longer in effect. The current
                                                                                                            SIL provisions (40 CFR 51.166(k)(2) and
                                                    out the specific PSD requirements in                                                                           definition of ‘‘greenhouse gases or
                                                                                                            40 CFR 52.21(k)(2)) was inconsistent
                                                    this section, however, this section now                                                                        GHGs’’ in Division 200 states that CO2
                                                                                                            with the explanation of when and how
                                                    simply references the PSD requirements                                                                         emissions from the combustion or
                                                                                                            SILs should be used by permitting
                                                    at OAR 340–224–0070.                                                                                           decomposition of biomass is not
                                                                                                            authorities that we provided in the
                                                                                                                                                                   included in the definition, except to the
                                                    Major NSR in Attainment/Unclassifiable                  preamble to the Federal Register
                                                                                                                                                                   extent required by federal law. We are
                                                    Areas (PSD)                                             publication when we promulgated these
                                                                                                                                                                   proposing to approve Oregon’s rules as
                                                                                                            provisions. Specifically, the EPA erred
                                                      For the construction of new sources                                                                          consistent with current federal law,
                                                                                                            because the language promulgated in
                                                    and modifications subject to Oregon                                                                            under which CO2 emissions from
                                                                                                            2010 does not provide permitting
                                                    Major NSR in attainment or                              authorities the discretion to require a                biogenic sources are regulated under
                                                    unclassifiable areas, Oregon revised its                cumulative impact analysis                             Oregon’s PSD program to the same
                                                    rules to address several court decisions                notwithstanding that the source’s                      extent as CO2 emissions from any other
                                                    impacting federal PSD rules. First, as                  impact is below the SIL, where there is                source.
                                                    discussed above, Oregon revised                         information that shows the proposed                       In addition to revisions addressing
                                                    definitions and procedures in Divisions                 source would lead to a violation of the                these three court decisions, Oregon also
                                                    200, 214, 216, 222 and 224 to remove                    NAAQS or increments. The third SIL                     eliminated language that allowed the
                                                    GHG-only sources from PSD                               provision (40 CFR 51.165(b)(2)) was not                substitution of post-construction
                                                    applicability. Therefore, as required                   vacated and remains in effect. On                      monitoring for preconstruction
                                                    under the EPA’s federal PSD program, a                  December 9, 2013, the EPA removed the                  monitoring. Oregon added an exemption
                                                    source is now subject to the Oregon                     vacated PM2.5 SILs and SMC provisions                  from the preconstruction ambient air
                                                    Major NSR requirements for GHGs only                    from federal PSD regulations (78 FR                    monitoring requirement, with the
                                                    when the source also is subject to                      73698). The EPA is starting a                          ODEQ’s approval, if representative or
                                                    Oregon PSD requirements for one or                      rulemaking on the PM2.5 SILs to address                conservative background concentration
                                                    more criteria pollutants. As required,                  the court’s remand. In the meantime, we                data is available, and the source
                                                    Oregon’s rules continue to require that                 advised states to remove the vacated                   demonstrates that such data is adequate
                                                    sources of GHGs subject to Oregon’s                     provisions from state PSD regulations.                 to determine that the source would not
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                                                    PSD rules for a criteria pollutant are also                In response to the vacatur and                      cause or contribute to a violation of an
                                                    subject to PSD for GHGs.                                remand, Oregon submitted revisions to                  ambient air quality standard or any
                                                      Second, Oregon revised its                            several divisions, including Divisions                 applicable PSD increment. These
                                                    requirements for preconstruction                        200, 202, 224 and 225. Oregon revised                  revisions, along with the other existing
                                                    monitoring to address another court                     the PM2.5 SMC to zero, as the EPA did,                 provisions regarding preconstruction
                                                    decision and resulting revisions to the                 to address this issue in the federal PSD               monitoring in Oregon’s PSD regulations,
                                                    EPA’s PSD rules. On October 20, 2010,
                                                    the EPA promulgated the 2010 PSD                          14 703   F.3d 458 (D.C. Cir. 2013).                    15 722   F.3d 401 (D.C. Cir. 2013).



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                                                                           Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                                 14665

                                                    are consistent with 40 CFR                              Division 225 to Division 224 to better                 this action. Specifically, Oregon
                                                    51.166(m)(iii) and therefore approvable.                consolidate new source review                          removed the state-wide PM2.5 inter-
                                                      Finally, Oregon added the                             requirements. The CAA requires that,                   pollutant offset ratios, and instead,
                                                    requirement to demonstrate a net air                    for major nonattainment NSR, the                       added rule language to require that they
                                                    quality benefit for subject sources that                proposed major source or major                         be calculated on a case-by-case basis.
                                                    will have a significant impact on air                   modifications must obtain emissions                    However, the EPA’s revised inter-
                                                    quality in a designated area other than                 reductions of the affected nonattainment               pollutant offset policy states that a state
                                                    the area in which the source is located.                pollutant from the same source or other                should make a specific demonstration
                                                    This demonstration of net air quality                   sources in the area to offset the                      for set ratios in a SIP submittal.18
                                                    benefit is beyond federal PSD                           proposed emissions increase. See CAA                   Oregon’s submittal does not include a
                                                    requirements, and will be discussed in                  section 173(c). Consistent with that                   demonstration for set ratios in specific
                                                    more detail below.                                      requirement, the EPA’s major                           areas. With the exception of OAR 340–
                                                    OAR 340–224–0245 to 340–224–0270,                       nonattainment NSR regulations require                  224–0510(3), we are proposing to
                                                    State NSR                                               that major sources and major                           approve the revisions to Oregon’s net air
                                                                                                            modifications in nonattainment areas                   quality benefit emissions rules (OAR
                                                       Division 224 now also specifies State                obtain emissions offsets at a ratio of at              340–224–0500 through 0540).
                                                    NSR requirements for sustainment,                       least 1 to 1 (1:1) from existing sources
                                                    nonattainment, reattainment,                                                                                   Summary
                                                                                                            in the area to offset emissions from the
                                                    maintenance, and attainment/                            new or modified source. 40 CFR                           We are proposing to approve the
                                                    unclassifiable areas. For sources that                  51.165(a)(9)(i).                                       revisions to Division 224, with the
                                                    emit between the SER and 100 tons per                     Oregon revised the state’s criteria for              exceptions and limitations noted above,
                                                    year in nonattainment and maintenance                   demonstrating a net air quality benefit.               because we have determined that, in
                                                    areas (Type A State NSR sources),                       In addition to the incentives provided to              conjunction with other provisions in
                                                    Oregon has relaxed some of the                          sources subject to Type A State NSR in                 Divisions 200, 222, and 225, the
                                                    requirements, as compared to its current                sustainment and reattainment areas to                  revisions are consistent with the
                                                    SIP, that historically went beyond                      obtain offsets from priority sources                   requirements of the EPA’s PSD, major
                                                    federal requirements. In nonattainment                  discussed above, Oregon made an                        nonattainment NSR, and minor NSR
                                                    areas, if the increase in emissions from                additional change. The state revised its               permitting programs. See 40 CFR 51.160
                                                    the source is the result of a major                     rules to provide incentives for major                  through 161, 51.165, and 51.166.
                                                    modification,16 BACT rather than LAER                   sources to use priority source offsets for
                                                    is now required. In maintenance areas,                                                                         M. Division 225: Air Quality Analysis
                                                                                                            Oregon Major NSR sources in                            Requirements
                                                    Type A State NSR sources are no longer                  nonattainment and reattainment areas
                                                    required to conduct preconstruction                     by increasing the required offset ratio                   This division contains the air quality
                                                    monitoring to support the ambient air                   for major sources to 1.2:1 from the                    analysis requirements, which are
                                                    impact analysis for the source. In                      current 1:1. If a source subject to Oregon             primarily used in Oregon’s NSR
                                                    addition, in both nonattainment and                     Major NSR obtains offsets of some                      program. By its terms, it does not apply
                                                    maintenance areas, Oregon’s new State                   emissions increases from priority                      unless a rule in another division,
                                                    NSR rules allow a reduction of the offset               sources, the ratio may be reduced to no                primarily Division 224, refers to
                                                    ratio if some of the offsets come from                  less than 1:1, the minimum offset level                Division 225 or a rule in Division 225.
                                                    sources that are contributing to air                    under the federal major nonattainment                     Substantive changes include revising
                                                    quality problems in the area (which                     NSR program.                                           the definition of ‘‘allowable emissions’’
                                                    historically have been woodstoves). In                    We most recently reviewed and took                   at OAR 340–225–0020(1) to add ‘‘40
                                                    sustainment and reattainment areas,                     action on submitted changes to Division                CFR part 62’’ to the list of referenced
                                                    Oregon’s new State NSR requirements                     225 on December 27, 2011 (76 FR                        standards and clarifying the definition
                                                    go beyond CAA requirements for minor                    80747). Although Oregon adopted the                    of ‘‘baseline concentration year’’ at OAR
                                                    NSR programs by requiring a                             EPA’s recommended inter-pollutant                      340–225–0020(3) that varies depending
                                                    demonstration of a net air quality                      offset ratios for PM2.5 and submitted                  on the pollutant for a particular
                                                    benefit (discussed below).                              them to the EPA, we were unable to                     designated area. Oregon revised the
                                                       Because BACT, LAER, pre-                             approve them in our 2011 action                        definitions of ‘‘competing PSD
                                                    construction monitoring, and offsets are                because, between the time that Oregon                  increment consuming source impacts’’
                                                    not required components of a State’s                    adopted the ratios and our 2011 action,                and ‘‘competing NAAQS [national
                                                    SIP-approved minor NSR program, and                     the EPA granted a petition to reconsider               ambient air quality standards] source
                                                    because the offset requirements now                     the ratios and changed its policy. As a                impacts,’’ at OAR 340–225–0020(4) and
                                                    provide sources with incentives to                      result, in 2011 we deferred action to                  (5) respectively, to broaden the
                                                    obtain offsets from sources found to be                 give Oregon time to demonstrate that                   reference to include all of Oregon’s
                                                    specifically contributing to air quality                the ratios protected ambient air quality               ambient air quality standards at
                                                    problems in the area, the EPA proposes                  standards in Oregon, or otherwise revise               Division 202 (which include the
                                                    to find that Oregon’s minor NSR                         the ratios—in line with the EPA’s July                 NAAQS)19 and to specify that in
                                                    program continues to meet CAA                           21, 2011, memorandum updating the                      calculating these concentrations,
                                                    requirements for approval.                              inter-pollutant offset policy.17 Oregon                sources may factor in the distance from
                                                                                                            did revise its rules, moved these                      the new or modified source to other
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                                                    OAR 340–224–0500 to 340–224–0540,                                                                              emission sources (range of influence or
                                                    Net Air Quality Benefit Emission Offsets                provisions to Division 224, at OAR 340–
                                                                                                            224–0510, and submitted the changes in                 ROI), spatial distribution of existing
                                                      Oregon moved the net air quality                      the April 2015 submission evaluated in                 emission sources, topography, and
                                                    benefit emission offset rules from
                                                                                                              17 Gina McCarthy, EPA Administrator. ‘‘Revised         18 Ibid.

                                                      16 Oregon  uses the term ‘‘major modification’’ for                                                            19 Our approval of OAR 340–225–0020(4) and (5)
                                                                                                            Policy to Address Reconsideration of Inter-pollutant
                                                    physical and operational changes that result in         Trading Provisions for Fine Particles (PM2.5),’’       would not extend to those ambient standards in
                                                    significant increases to both existing major and        Memorandum to Regional Administrators, July 21,        Division 202 that we have excluded from our
                                                    existing minor sources.                                 2011.                                                  approval.



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                                                    14666                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    meteorology. Oregon also clarified and                  maintenance, typically achievable                        Oregon revised Division 228 to
                                                    reorganized the defined ROI formula at                  control technology, additional                        tighten grain loading standards for fuel
                                                    OAR 340–225–0020(10). The ROI is the                    requirements imposed on a permit by                   burning equipment in the same manner
                                                    distance from the new or modified                       permit basis, alternative emission limits             as in Division 226, discussed above. We
                                                    source or source impact area to other                   (bubbles), and particulate emission                   propose to approve the revisions
                                                    emission sources that could impact that                 limits for process equipment and other                because they tighten particulate
                                                    area. The ROI and source impact area                    sources (other than fuel or refuse                    emission standards for fuel burning
                                                    are used to predict the air quality                     burning equipment or fugitive                         equipment and strengthen the SIP. We
                                                    impacts of a new or modified source.                    emissions). In OAR 340–226–0120,                      note that revisions to this division
                                                    Oregon continues to limit the maximum                   Oregon clarified that pressure drop and               related to the federal Acid Rain Program
                                                    ROI to 50 kilometers and has moved the                  ammonia slip are operational,                         (OAR 340–228–0300, and –0400
                                                    constant values in the ROI formula from                 maintenance and work practice                         through –0530) were not submitted, but
                                                    the table at the end of the division into               requirements that the ODEQ may                        were included to show a complete
                                                    the text of the rule.                                   establish in a permit condition or notice             record of the revisions. These rules are
                                                       Oregon revised the PSD requirements                  of construction approval. Oregon also                 not a part of Oregon’s federally-
                                                    to align with the court decision vacating               revised OAR 340–226–0130 Typically                    approved SIP.
                                                    and remanding the PM2.5 SIL. Please see                 Achievable Control Technology by
                                                    Section L above for a discussion of the                                                                       P. Division 232: Emission Standards for
                                                                                                            moving procedural requirements from
                                                    court decision. Division 225 now                                                                              VOC Point Sources
                                                                                                            the definitions at Division 200 to this
                                                    includes language stating that                          division, and revising them to account                   This division restricts emissions of
                                                    application of a SIL as a screening tool                for Oregon’s changes to NSR, Major NSR                VOC from new and existing listed
                                                    does not preclude the ODEQ from                         and Type A State NSR.                                 source categories in the Portland and
                                                    requiring additional analysis to evaluate                  Notably, the state made substantive                Medford Air Quality Maintenance Areas
                                                    whether a proposed source or                            revisions to the particulate emission                 and in Salem-Keizer in the Salem-Keizer
                                                    modification will cause or contribute to                limits under the Grain Loading                        Area Transportation Study Area as well
                                                    a violation of an air quality standard or               Standards section starting at OAR 340–                as any source in these areas with the
                                                    PSD increment.                                          226–0200. Oregon’s stated goal was to                 potential to emit over 100 tons of VOC
                                                       The state also updated the PSD                       reduce emissions from certain sources                 per year. Consistent with CAA
                                                    requirements for demonstrating                          built before June 1970. The rules phase               requirements, Oregon has clarified that
                                                    compliance with air quality related                     in tighter standards for these older                  the determination of whether a source
                                                    values. Oregon made clear that, if                      sources, based on typically available                 has a potential to emit over 100 tons of
                                                    applicable, the analysis applies to each                control technology, such as multiclones.              VOC per year is made before
                                                    emission unit that increases the actual                 The revisions generally tighten grain                 consideration of add-on controls.
                                                    emissions of a regulated pollutant above                loading standards for existing sources                   Oregon expanded the section on
                                                    the portion of the netting basis                        from 0.2 grains per dry standard cubic                marine tank vessels so that the marine
                                                    attributable to that emission unit. The                 foot (gr/dscf) to between 0.10 and 0.15               vapor control requirements now apply
                                                    state also spelled out that the term ‘‘air              gr/dscf depending on whether there is                 to marine tank vessel loading of other
                                                    quality related values’’ includes                       existing source test data for the source              volatile organic liquids in addition to
                                                    visibility, deposition, and ozone                       and what that data shows. Oregon set                  gasoline, effective July 1, 2018. The
                                                    impacts. In addition, the state mandated                timelines to achieve these rates                      loading of organic liquids stored in
                                                    a visibility analysis for sources                       depending on whether sources were                     pressurized tanks, such as liquefied
                                                    impacting the Columbia River Gorge                      built before or after June 1, 1970.                   natural gas and propane, are not
                                                    National Scenic Area (Gorge), instead of                Existing sources that operate equipment               included in this expansion. Consistent
                                                    recommending sources also evaluate                      less frequently (less than 867 hours a                with the change discussed above, the
                                                    potential impacts on the Gorge. We                      year) must meet less stringent standards.             state also made clear that, in
                                                    propose to approve the revisions to                     For new sources, the ODEQ has                         determining whether a course is subject
                                                    Division 225 as meeting CAA                             increases the stringency of the grain                 to the rules on surface coating in
                                                    requirements, including the EPA’s major                 loading standard by adding a significant              manufacturing, determination of the
                                                    NSR permitting regulations at 40 CFR                    digit, revising the standard from 0.1 gr/             source’s potential to emit is made before
                                                    51.165 and 51.166, and the regional                     dscf to 0.10 gr/dscf. We propose to                   consideration of add-on controls.
                                                    haze requirements at 40 CFR part 51,                    approve the revisions to Division 226                 Oregon also requires records under the
                                                    subpart P.                                              because they tighten particulate                      surface coating in manufacturing rule to
                                                       As discussed above, Oregon repealed                  emission standards and strengthen the                 be retained for five years rather than
                                                    the Requirements for Demonstrating a                    SIP.                                                  two, consistent with title V. Finally,
                                                    Net Air Quality Benefit section at OAR                                                                        Oregon also clarified that determining
                                                                                                            O. Division 228: Requirements for Fuel
                                                    340–225–0090, after moving the                                                                                potential to emit for rotogravure and
                                                                                                            Burning Equipment and Fuel Sulfur
                                                    requirements into the Net Air Quality                                                                         flexographic printing sources subject to
                                                                                                            Content
                                                    Benefit Emission Offsets section in                                                                           VOC requirements is made before
                                                    Division 224, which we described                          These rules establish generally                     consideration of add-on controls. We
                                                    above. We propose to approve the repeal                 applicable requirements for fuel burning              propose to approve the changes
                                                                                                            equipment, including limits on sulfur
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                                                    of OAR 340–225–0090.                                                                                          described above because they strengthen
                                                                                                            content and particulate matter. Oregon                the SIP and are consistent with the
                                                    N. Division 226: General Emission                       removed a coal space-heating exemption                CAA.
                                                    Standards                                               that expired in 1983 and clarified that
                                                       This division contains emission                      sulfur dioxide emissions from recovery                Q. Division 234: Emissions Standards
                                                    standards and requirements of general                   furnaces are not subject to this division             for Wood Products Industries
                                                    applicability, including requirements                   but are instead regulated under the SO2                 Oregon repealed two sections of this
                                                    for highest and best practicable                        emissions limits for wood products                    division—the neutral sulfite semi-
                                                    treatment and control, operating and                    industries in Division 234.                           chemical section (OAR 340–234–0300


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                           14667

                                                    through 0360) and the sulfite pulp mill                 also added test methods for moisture                  title I of the CAA, not essential for
                                                    section (OAR 340–234–0400 through                       content to the emission standards for                 meeting and maintaining the NAAQS,
                                                    0430)—because sources of this type no                   veneer and plywood manufacturing                      nor related to the requirements for SIPs
                                                    longer exist in the state. Any new                      requirements. For hardboard tempering                 under section 110 of the CAA.
                                                    sources constructed would be subject to                 ovens, Oregon revised the emission
                                                                                                                                                                  S. Division 240: Rules for Areas With
                                                    new source review, as well as applicable                requirements to require that alternative
                                                                                                                                                                  Unique Air Quality Needs
                                                    NSPS and NESHAP requirements. As a                      temperatures be approved using the
                                                    result, Oregon removed terms no longer                  procedures in the federal NESHAP for                     In the submission, Oregon revised air
                                                    used in this division, including acid                   Plywood and Composite Wood                            quality control requirements for certain
                                                    absorption tower, acid plant, average                   Products, 40 CFR part 63, subpart                     areas—these are generally areas that are,
                                                    daily production, blow system,                          DDDD. Because these rules did not                     or have been, designated nonattainment
                                                    continual monitoring, continuous-flow                   include testing and monitoring                        by the EPA. At OAR 340–240–0050, the
                                                    conveying system, modified wigwam                       requirements, Oregon added a new                      state clarified the appropriate test
                                                    waste burner, neutral sulfite semi-                     section, OAR 340–234–0540 Testing                     methods for determining compliance
                                                    chemical (NSSC) pulp mill, production,                  and Monitoring.                                       with emission standards in this
                                                    spent liquor incinerator, sulfite mill,                   We propose to approve the changes to                division, improving the enforceability of
                                                    and sulfur oxides.                                      Division 234, except with respect to                  the standards. In addition, visible
                                                       In the Kraft Pulp Mills section at OAR               requirements regulating total reduced                 emissions requirements, at OAR 340–
                                                    340–234–0200 through 0270, the state                    sulfur and odor, because they strengthen              240–0110, 0140, 0330, 0350, and 0510,
                                                    revised what was formerly referred to as                the SIP and are consistent with CAA                   were revised to update opacity testing
                                                    ‘‘significant upgrading’’ of equipment                  requirements. Total reduced sulfur and                averaging times from an aggregate three-
                                                    for purposes of determining whether                     odor requirements are not appropriate                 minute exception in any one hour to a
                                                    more restrictive standards apply. This                  for SIP approval because they are not                 six-minute average. The state explained
                                                    change was intended to enhance the                      criteria pollutants under title I of the              the basis for this change in its
                                                    enforceability of the requirement to                    CAA. We therefore are excluding from                  submission, and we describe, in Section
                                                    meet more restrictive emission                          approval into the Oregon SIP the                      E above, why we propose to approve
                                                    standards based on changes to the                       references to total reduced sulfur and                this change.
                                                    source. This section was also revised to                odor in definitions at OAR 340–234–                      Oregon also revised particulate
                                                    update the non-recovery furnace opacity                 0010(8) and (10), and in Kraft Pulp Mill              control requirements for air conveying
                                                    limit averaging times to six minutes in                 rules at OAR 340–234–0210(1), OAR                     systems, at OAR 340–240–0350, setting
                                                    lieu of the previous three-minute                       340–234–0220(2), OAR 340–234–                         removal efficiency standards designed
                                                    exception. In making this change,                       0240(1), and OAR 340–234–0250(1) and                  to ensure that the pollution collected
                                                    Oregon relied on the same rationale                     (2).                                                  from a source is not ultimately
                                                    discussed in Section E. above.                                                                                discharged into the atmosphere. In
                                                       Oregon also added source test                        R. Division 236: Emissions Standards                  making this change, the state regulated
                                                    methods for particulate matter and                      for Specific Industries                               design removal efficiency rather than
                                                    required demonstrations of oxygen                          Under Division 236, Oregon repealed                actual removal efficiency because of the
                                                    concentrations in recovery furnace and                  rules designed to regulate aluminum                   challenges of testing for removal
                                                    lime kiln gases. Under the Reporting                    (OAR 340–236–0100 through 0150) and                   efficiency, which requires measuring
                                                    section at OAR 340–234–0250, the state                  laterite ore production of ferronickel                emissions at the inlet and the outlet.
                                                    removed the alternative sampling option                 (OAR 340–236–0200 through 0230)                       Oregon updated the grain loading
                                                    where transmissometers are not feasible                 because sources of this type no longer                standard for air conveying systems in
                                                    because all pulp mills in Oregon now                    exist in the state. Any new facilities                the La Grande Urban Growth Area
                                                    have transmissometers.                                  would be subject to new source review                 emitting ten tons or less a year (from 0.1
                                                       Oregon made minor changes to OAR                     as well as applicable NSPS and                        to 0.10 grains per standard cubic foot)
                                                    340–234–0270, a provision authorizing                   NESHAP requirements. Oregon also                      but allowed extensions of up to one
                                                    the ODEQ to determine that upset                        made clear the appropriate test method                year, if necessary to install controls to
                                                    conditions at a subject source are                      to determine compliance with the hot                  meet the revised standard. Oregon made
                                                    chronic and correctable by the                          mix asphalt plant rules at OAR 340–                   the changes intending to better align the
                                                    installation of new or modified process                 236–0410(1). In addition, the state                   rules with federally-approved standards
                                                    or control equipment and requiring a                    added a requirement that hot mix                      and testing methods.
                                                    program and schedule to effectively                     asphalt plants must develop a fugitive                   Also in this division, Oregon repealed
                                                    eliminate the deficiencies causing the                  emissions control plan if requested by                the charcoal producing plant rules at
                                                    upset conditions. This provision makes                  the ODEQ. See OAR 340–236–0410(4).                    OAR 340–240–0170 because there are
                                                    clear that such upsets causing emissions                   We note that Oregon repealed OAR                   no longer any existing sources of this
                                                    in excess of applicable limits may be                   340–236–0430 specific to portable hot                 type in Oregon outside of Lane County
                                                    subject to a civil penalty or other                     mix asphalt plants, which addressed                   (which is subject to rules in addition to,
                                                    appropriate action. The EPA is                          only permit requirements for such                     or in lieu of, these rules), and any new
                                                    proposing to reapprove this provision                   plants, because these plants are now                  charcoal producing plants would be
                                                    with these changes based on the                         regulated under general permits in                    subject to new source review and any
                                                    understanding that it does not excuse                   Division 216. With the exception of the               applicable NSPS and NESHAP
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                                                    excess emissions from enforcement                       provisions regulating animal matter and               requirements. In accord with changes to
                                                    action seeking penalties or injunctive                  municipal solid waste landfills, we                   other divisions discussed above, the
                                                    relief.                                                 propose to approve the revisions and                  state removed the sanctioned use of
                                                       Oregon moved the test method for the                 repeals because they are consistent with              asphalt and oil as dust suppressants.
                                                    opacity limit for veneer and plywood                    CAA requirements. The provisions                      Oregon also repealed old, expired
                                                    manufacturing operations from the                       regulating animal matter and municipal                provisions in this division.
                                                    definitions into the requirement itself                 solid waste landfills are not related to                 We note that Oregon’s federally-
                                                    (OAR 340–234–0510(1)(b)(A)). The state                  the criteria pollutants regulated under               approved SIP currently controls sources


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                                                    14668                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    in the Klamath Falls nonattainment                      to approve the submitted changes to                   regulations and we propose to approve
                                                    area, and incentivizes sources in                       Division 242 as consistent with CAA                   them.
                                                    Klamath Falls to offset particulate                     requirements.
                                                                                                                                                                  X. Source Sampling Manual and
                                                    emissions by decommissioning
                                                                                                            U. Division 262: Heat Smart Program for               Continuous Monitoring Manual
                                                    fireplaces, installing fireplace inserts,               Residential Woodstoves and Other Solid
                                                    replacing old stoves with certified                                                                              Oregon submitted the ODEQ Source
                                                                                                            Fuel Heating Devices                                  Sampling Manual, Volumes I and II, and
                                                    stoves, and replacing wood-fired heaters
                                                    with alternatives like natural gas and                    Oregon submitted a change to the                    the ODEQ Continuous Monitoring
                                                    electric baseboards. In this submission,                definitions section of this division, at              Manual, revised as of April 2015. These
                                                    Oregon updated requirements in                          OAR 340–262–0450. Oregon’s rules now                  manuals are key reference materials
                                                    Klamath Falls by removing an exception                  expressly exclude boilers providing                   used in OAR Divisions 200 through 268.
                                                    from the 20% opacity standard, and by                   process heat to a commercial, industrial,             As noted above, Oregon added
                                                    uniformly applying the 6-minute                         or institutional establishment (that                  references to the April 2015 edition of
                                                    averaging time to measure opacity, as                   obtain a construction approval from the               both manuals in Division 200. Oregon
                                                    described above in Section E.                           ODEQ) from the definition of ‘‘solid fuel             incorporates changes to testing and
                                                       Oregon also revised this section to                  burning device’’ regulated under the                  monitoring requirements—spelled out
                                                    expand offsets to the Lakeview                          Heat Smart Program. These units are                   in these manuals—into the permits of
                                                    sustainment area as well as other                       currently exempt from the Heat Smart                  source owners and operators, as
                                                    eligible areas. See OAR 340–240–0560.                   Program under Oregon’s SIP and the                    necessary.
                                                    We propose to approve the revisions                     revision to Oregon’s rules continues that                The Source Sampling Manual
                                                    because they are consistent with the                    exemption. We propose to approve the                  addresses air emissions source sampling
                                                                                                            change because as a matter of federal                 practices and procedures for projects in
                                                    CAA and strengthen the SIP.
                                                                                                            law, this revision results in no change               Oregon. Volume I of this manual was
                                                    T. Division 242: Rules Applicable to the                to the Oregon SIP.                                    updated to account for changes to the
                                                    Portland Area                                                                                                 EPA methods for measuring fine
                                                                                                            V. Division 264: Rules for Open Burning               particulate matter, and other new and
                                                      This division contains additional
                                                                                                              The only substantive change to this                 modernized methods. Volume II of this
                                                    requirements that apply in the Portland
                                                                                                            division is the repeal of the forced air              manual was revised to remove the
                                                    area. The industrial emissions
                                                                                                            pit incinerators rule and associated                  annual reporting requirements for small
                                                    management program was updated to
                                                                                                            references at OAR 340–264–0190.                       gasoline dispensing facilities
                                                    account for the changes to Oregon’s
                                                                                                            Forced air pit and air curtain                        (throughput of less than 10,000 gallons
                                                    Major NSR and State NSR programs.
                                                                                                            incinerators are regulated under the                  of gasoline per month). The state
                                                    Oregon also moved the net air quality
                                                                                                            EPA’s rules for Commercial/Industrial                 determined that the annual reporting
                                                    benefit provisions to Division 224 to
                                                                                                            Solid Waste Incinerators and are                      requirement was not needed to measure
                                                    consolidate NSR requirements. We note
                                                                                                            required to have title V operating                    compliance because the ODEQ collected
                                                    that we already approved the changes to
                                                                                                            permits. The ODEQ has therefore                       one-time throughput data from these
                                                    the Gasoline Vapors from Gasoline
                                                                                                            determined that such units should no                  facilities and is authorized to request
                                                    Transfer and Dispensing Operations
                                                                                                            longer be regulated under Oregon’s rules              additional information if needed.
                                                    section at OAR 340–242–0500, 0510,
                                                                                                            for open burning. We propose to                          Oregon extensively revised the
                                                    and 0520 on October 27, 2015 (80 FR
                                                                                                            approve the repeal as consistent with                 Continuous Monitoring Manual,
                                                    65655), and are therefore not addressing
                                                                                                            the CAA.                                              originally published in 1992. The
                                                    them in this action.
                                                                                                                                                                  manual includes federal monitoring
                                                      Oregon repealed the Spray Paint rule                  W. Division 268: Emission Reduction
                                                                                                                                                                  requirements for the NSPS, NESHAP,
                                                    sections at OAR 340–242–0700 through                    Credits
                                                                                                                                                                  and Acid Rain programs and was
                                                    0790 because the EPA has set national                      In Division 268, Oregon submitted                  updated primarily to address
                                                    rules designed to be more stringent. The                revisions to OAR 340–268–0030 to                      continuous monitoring systems of all
                                                    Oregon spray paint rules were originally                clarify when reductions in criteria                   types. The changes affect commercial
                                                    a mass-based standard adopted in 1995                   pollutant emissions that are also                     operations that are required to install
                                                    and projected to have a 15 percent                      hazardous air pollutant emissions are                 and operate continuous monitoring
                                                    reduction in VOCs in the 1996 Portland                  creditable. Emissions reductions                      systems, contractors that audit or certify
                                                    Ozone Maintenance Plan. On March 24,                    required to meet federal NESHAP                       the systems, and vendors that sell or
                                                    2008, the EPA finalized national VOC                    standards in 40 CFR part 61 or 63 are                 design the systems. We reviewed the
                                                    rules (73 FR 15604). As described in the                not creditable as emission reduction                  revised manuals, and we propose to
                                                    proposal for the EPA’s rule, the EPA’s                  credits for purposes of Major NSR in                  approve the changes as consistent with
                                                    reactivity-based standard would provide                 nonattainment or reattainment areas in                40 CFR part 51, subpart M, and part 60,
                                                    a 19 percent reduction in VOCs (July 16,                Oregon. However, criteria pollutant                   subparts A and B, for purposes of the
                                                    2007, 72 FR 38952). The EPA also cited                  reductions that are in excess of, or                  emission limits and requirements
                                                    the rule’s projected 19 percent reduction               incidental to, the required hazardous air             approved into the SIP.
                                                    of VOC in an EPA memo providing                         pollutant reductions can potentially
                                                    guidelines on emissions reduction                       earn credits—as long as all conditions                IV. Proposed Action
                                                    credit.20 In addition, California Air                   are met. Oregon also lowered the                        We propose to approve, and
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                                                    Resource Board developed a reactivity-                  threshold for banking credits in the                  incorporate by reference, specific rule
                                                    based standard, approved by the EPA in                  Klamath Falls and Lakeview areas from                 revisions submitted by Oregon on May
                                                    September 2005 (70 FR 53930). We find                   ten tons to one ton—to encourage                      21, 2015. As documented in the
                                                    the repeal to be approvable and propose                 trading activity. Finally, Oregon                     submission, we propose to approve
                                                      20 Stephen Page, ‘‘Emission Reduction Credit for
                                                                                                            specified when such credits are                       certain of the state rule revisions to also
                                                    Three Federal Rules for Categories of Consumer and
                                                                                                            considered used up, and when they                     apply in Lane County, because the
                                                    Commercial Products,’’ Memo to Regional                 expire. The revisions are consistent with             Oregon EQC has determined those rule
                                                    Administrators, 2007.                                   the CAA and the EPA’s implementing                    to be more stringent that the


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                                                                          Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules                                          14669

                                                    corresponding local rules. We also                      0030, 0035, 0040, 0041, 0042, 0046,                     • Division 216—Air Contaminant
                                                    propose to approve, but not incorporate                 0048, 0051, 0055, 0080, 0090);                        Discharge Permits (0040, 8010);
                                                    by reference, specific provisions that                    • Division 224—New Source Review                      • Division 222—Stationary Source
                                                    provide the ODEQ with authority                         (0010, 0020, 0025, 0030, 0034, 0038,                  Plant Site Emission Limits (0090);
                                                    needed for SIP approval.                                0040, 0045, 0050, 0055, 0060, 0070,                     • Division 224 –New Source Review
                                                      In addition, we propose to remove                     0245, 0250, 0255, 0260, 0270, 0500,                   (0030, 0530);
                                                    repealed rules from Oregon’s federally-                 0510—except paragraph (3), 0520, 0530,                  • Division 225—Air Quality Analysis
                                                    approved SIP, as requested by the state,                0540);                                                Requirements (0010, 0020, 0030, 0040,
                                                    because they are obsolete or redundant.                   • Division 225—Air Quality Analysis                 0045, 0050, 0060, 0070);
                                                    Finally, we are not approving certain                   Requirements (0010, 0020, 0030, 0040,                   • Division 226—General Emissions
                                                    rules that are inconsistent with CAA                    0045, 0050, 0060, 0070);                              Standards (0210); and
                                                    requirements, or that are inappropriate                   • Division 226—General Emissions                      • Division 228—Requirements for
                                                    for SIP approval, because they are not                  Standards (0005, 0010, 0100, 0110,                    Fuel Burning Equipment and Fuel
                                                    related to the criteria pollutants                      0120, 0130, 0140, 0210, 0310, 0320,                   Sulfur Content (0210).
                                                    regulated under title I of the CAA, not                 0400, 8010);
                                                                                                                                                                  B. Rules Approved but Not Incorporated
                                                    essential for meeting and maintaining                     • Division 228—Requirements for
                                                                                                                                                                  by Reference
                                                    the NAAQS, or not related to the                        Fuel Burning Equipment and Fuel
                                                    requirements for SIPs under section 110                 Sulfur Content (0010, 0020, 0100, 0110,                 We propose to approve, but not
                                                    of the CAA.                                             0120, 0130, 0200, 0210);                              incorporate by reference, the following
                                                                                                              • Division 232—Emission Standards                   provisions:
                                                    A. Rules Approved and Incorporated by                   for VOC Point Sources (0010, 0020,                      • ODEQ Source Sampling Manual,
                                                    Reference                                               0030, 0040, 0050, 0060, 0080, 0085,                   Volumes I and II, April 2015 (for
                                                       We propose to approve into the                       0090, 0100, 0110, 0120, 0130, 0140,                   purposes of the limits approved into the
                                                    Oregon SIP, and incorporate by                          0150, 0160, 0170, 0180, 0190, 0200,                   SIP);
                                                    reference at 40 CFR part 52, subpart                    0210, 0220, 0230);                                      • ODEQ Continuous Emissions
                                                    MM, the submitted revisions to Chapter                    • Division 234—Emission Standards                   Monitoring Manual, April 2015 (for
                                                    340 of the OAR listed below, state                      for Wood Products Industries (0005,                   purposes of the limits approved into the
                                                    effective April 16, 2015:                               0010—except (8) and (10), 0100, 0140,                 SIP);
                                                       • Division 200—General Air                           0200, 0210—except (1), 0220—except                      • ODEQ–LRAPA Stringency Analysis
                                                    Pollution Procedures and Definitions                    (2), 0240—except (1), 0250—except (1)                 and Directive, Attachment B; and
                                                    (0010, 0020, 0025, 0030, 0035);                         and (2), 0270, 0500, 0510, 0520, 0530,                  • Division 200—General Air
                                                       • Division 202—Ambient Air Quality                   0540);                                                Pollution Procedures and Definitions
                                                    Standards and PSD Increments (0010,                       • Division 236—Emission Standards                   (0100, 0110, 0120).
                                                    0020, 0050, 0070, 0100, 0130, 0200,                     for Specific Industries (0005, 0010,                  C. Rules Removed
                                                    0210, 0220, 0225);                                      0400, 0410, 0420, 0440, 8010);
                                                       • Division 204—Designation of Air                      • Division 240—Rules for Areas with                   We propose to remove the following
                                                    Quality Areas (0010, 0020, 0030, 0040,                  Unique Air Quality Needs (0010, 0020,                 sections from the Oregon SIP because
                                                    0050, 0060, 0070, 0080, 0090, 0300,                     0030, 0050, 0100, 0110, 0120, 0130,                   they have been repealed, replaced by
                                                    0310, 0320);                                            0140, 0150, 0160, 0180, 0190, 0210,                   rules noted in paragraph A above, or the
                                                       • Division 206—Air Pollution                         0220, 0250, 0300, 0320, 0330, 0340,                   state has asked that they be removed:
                                                    Emergencies (0010, 0020, 0030, 0040,                    0350, 0360, 0400, 0410, 0420, 0430,                     • Division 208—Visible Emissions
                                                    0050, 0060, 0070, 8010, 8020, 8030,                     0440, 0510, 0550, 0560, 0610);                        and Fugitive Emissions Requirements
                                                    8040);                                                    • Division 242—Rules Applicable to                  (0100, 0200);
                                                       • Division 208—Visible Emissions                     the Portland Area (0400, 0410, 0420,                    • Division 212—Compliance
                                                    and Nuisance Requirements (0005,                        0430, 0440, 0600, 0610, 0620, 0630);                  Assurance Monitoring (0200, 0210,
                                                    0010, 0110, 0210);                                        • Division 262—Heat Smart Program                   0220, 0230, 0240, 0250, 0260, 0270,
                                                       • Division 209—Public Participation                  for Residential Woodstoves and Other                  0280);
                                                    (0010, 0020, 0030, 0040, 0050, 0060,                    Solid Fuel Heating Devices (0450);                      • Division 214—Stationary Source
                                                    0070, 0080);                                              • Division 264—Rules for Open                       Reporting Requirements (0360);
                                                       • Division 210—Stationary Source                     Burning (0010, 0020, 0030, 0040, 0050,                  • Division 222—Stationary Source
                                                    Notification Requirements (0010, 0020,                  0060, 0070, 0075, 0078, 0080, 0100,                   Plant Site Emissions Limits (0043, 0045,
                                                    0100, 0110, 0120, 0205, 0215, 0225,                     0110, 0120, 0130, 0140, 0150, 0160,                   0070);
                                                    0230, 0240, 0250);                                      0170, 0175, 0180); and                                  • Division 224—New Source Review
                                                       • Division 212—Stationary Source                       • Division 268—Emission Reduction                   (0080, 0100);
                                                    Testing and Monitoring (0005, 0010,                     Credits (0010, 0020, 0030).                             • Division 225—Air Quality Analysis
                                                    0110, 0120, 0130, 0140, 0150);                                                                                Requirements (0090);
                                                       • Division 214—Stationary Source                     Rules Also Approved for Lane County                     • Division 226—General Emission
                                                    Reporting Requirements (0005, 0010,                       • Division 200—General Air                          Standards (0200);
                                                    0100, 0110, 0114, 0130, 0200, 0210,                     Pollution Procedures and Definitions                    • Division 228—Requirements for
                                                    0220, 0300—except introductory                          (0020);                                               Fuel Burning Equipment and Fuel
                                                    sentence related to NSPS and NESHAPs,                     • Division 202—Ambient Air Quality                  Sulfur Content (0400, 0410, 0420, 0430,
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                                                    0310, 0320, 0330, 0340, 0350);                          Standards and PSD Increments (0050);                  0440, 0450, 0460, 0470, 0480, 0490,
                                                       • Division 216—Air Contaminant                         • Division 204—Designation of Air                   0500, 0510, 0520, 0530);
                                                    Discharge Permits (0010, 0020, 0025,                    Quality Areas (0300, 0310, 0320);                       • Division 234—Emission Standards
                                                    0030, 0040, 0052, 0054, 0060, 0062,                       • Division 208—Visible Emissions                    for Wood Products Industries (0300,
                                                    0064, 0066, 0068, 0070, 0082, 0084,                     and Nuisance Requirements (0110,                      0310, 0320, 0330, 0340, 0350, 0360,
                                                    0090, 0094, 8010, 8020);                                0210);                                                0400, 0410, 0420, 0430);
                                                       • Division 222—Stationary Source                       • Division 214—Stationary Source                      • Division 236—Emission Standards
                                                    Plant Site Emission Limits (0010, 0020,                 Reporting Requirements (0114) (5);                    for Specific Industries (0100, 0110,


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                                                    14670                 Federal Register / Vol. 82, No. 54 / Wednesday, March 22, 2017 / Proposed Rules

                                                    0120, 0130, 0140, 0150, 0200, 0210,                     program from federal delegation. Oregon                  The SIP is not approved to apply on
                                                    0220, 0230, 0430);                                      has previously confirmed that, because                any Indian reservation land or in any
                                                      • Division 240—Rules for Areas with                   application of the notice provision                   other area where the EPA or an Indian
                                                    Unique Air Quality Needs (0170, 0230,                   would preclude EPA approval of the                    tribe has demonstrated that a tribe has
                                                    0310);                                                  Oregon SIP, no advance notice is                      jurisdiction. In those areas of Indian
                                                      • Division 242—Rules Applicable to                    required for violation of SIP                         country, the rule does not have tribal
                                                    the Portland Areas (0700, 0710, 0720,                   requirements.                                         implications as specified by Executive
                                                    0730, 0740, 0750, 0760, 0770, 0780,                                                                           Order 13175 (65 FR 67249, November 9,
                                                    0790); and                                              VII. Statutory and Executive Order
                                                                                                                                                                  2000), nor will it impose substantial
                                                      • Division 264—Rules for Open                         Reviews
                                                                                                                                                                  direct costs on tribal governments or
                                                    Burning (0190).                                            Under the CAA, the Administrator is                preempt tribal law.
                                                    D. Rules Not Approved                                   required to approve a SIP submission
                                                                                                            that complies with the provisions of the              List of Subjects in 40 CFR Part 52
                                                      For the reasons stated above, we are                  CAA and applicable federal regulations.                 Environmental protection, Air
                                                    not approving the following revised                     42 U.S.C. 7410(k); 40 CFR 52.02(a).                   pollution control, Incorporation by
                                                    provisions submitted by Oregon because                  Thus, in reviewing SIP submissions, the               reference, Intergovernmental relations,
                                                    they are inconsistent with CAA                          EPA’s role is to approve state choices,               Lead, Nitrogen dioxide, Ozone,
                                                    requirements, or because they are                       provided that they meet the criteria of               Particulate matter, Reporting and
                                                    inappropriate for SIP approval under                    the CAA. Accordingly, this proposed                   recordkeeping requirements, Sulfur
                                                    section 110, title I of the CAA:                        action merely approves state law as                   oxides, Volatile organic compounds.
                                                      • Division 200—General Air                            meeting federal requirements and does                   Authority: 42 U.S.C. 7401 et seq.
                                                    Pollution Procedures and Definitions                    not impose additional requirements
                                                    (0050) (compliance schedules);                                                                                  Dated: March 9, 2017.
                                                                                                            beyond those imposed by state law. For
                                                      • Division 214—Stationary Source                      that reason, this proposed action:                    Michelle L. Pirzadeh,
                                                    Reporting Requirements (0300                               • Is not a ‘‘significant regulatory                Acting Regional Administrator, EPA Region
                                                    introductory sentence related to NSPS                   action’’ subject to review by the Office              10.
                                                    and NESHAPs);                                           of Management and Budget under                        [FR Doc. 2017–05463 Filed 3–21–17; 8:45 am]
                                                      • Division 222—Stationary Source                      Executive Orders 12866 (58 FR 51735,                  BILLING CODE 6560–50–P
                                                    Plant Site Emission Limits (0060)                       October 4, 1993) and 13563 (76 FR 3821,
                                                    (hazardous air pollutants);                             January 21, 2011);
                                                      • Division 224—New Source Review                                                                            ENVIRONMENTAL PROTECTION
                                                                                                               • does not impose an information
                                                    (0510(3)) (PM2.5 inter-pollutant offset                                                                       AGENCY
                                                                                                            collection burden under the provisions
                                                    ratios); and
                                                                                                            of the Paperwork Reduction Act (44
                                                      • Division 234—Emission Standards                                                                           40 CFR Part 52
                                                                                                            U.S.C. 3501 et seq.);
                                                    for Wood Products Industries (0010(8)
                                                                                                               • is certified as not having a
                                                    and (10), 0210(1), 0220(2), 0240(1), 0250                                                                     [EPA–R04–OAR–2015–0248; FRL–9957–88–
                                                                                                            significant economic impact on a
                                                    (1) and (2)) (total reduced sulfur and                                                                        Region 4]
                                                                                                            substantial number of small entities
                                                    odor).
                                                                                                            under the Regulatory Flexibility Act (5               Air Plan Approval; Georgia; Atlanta;
                                                    V. Incorporation by Reference                           U.S.C. 601 et seq.);                                  Requirements for the 2008 8-Hour
                                                      In this rule, we are proposing to                        • does not contain any unfunded                    Ozone Standard
                                                    include in a final rule regulatory text                 mandate or significantly or uniquely
                                                    that includes incorporation by                          affect small governments, as described                AGENCY:  Environmental Protection
                                                    reference. In accordance with                           in the Unfunded Mandates Reform Act                   Agency.
                                                    requirements of 1 CFR 51.5, we are                      of 1995 (Pub. L. 104–4);                              ACTION: Proposed rule.
                                                    proposing to incorporate by reference                      • does not have federalism
                                                    the provisions described above in                       implications as specified in Executive                SUMMARY:   The Environmental Protection
                                                    Section IV. Proposed Action. The EPA                    Order 13132 (64 FR 43255, August 10,                  Agency (EPA) is proposing to approve
                                                    has made, and will continue to make,                    1999);                                                the portion of a state implementation
                                                    these documents generally available                        • is not an economically significant               plan (SIP) revision submitted by the
                                                    electronically through http://                          regulatory action based on health or                  State of Georgia, through Georgia
                                                    www.regulations.gov and/or in hard                      safety risks subject to Executive Order               Environmental Protection Division on
                                                    copy at the appropriate EPA office (see                 13045 (62 FR 19885, April 23, 1997);                  February 6, 2015, addressing the
                                                    the ADDRESSES section of this preamble                     • is not a significant regulatory action           nonattainment new source review
                                                    for more information).                                  subject to Executive Order 13211 (66 FR               requirements for the 2008 8-hour ozone
                                                                                                            28355, May 22, 2001);                                 national ambient air quality standards
                                                    VI. Oregon Notice Provision                                • is not subject to requirements of                for the Atlanta, Georgia 2008 8-hour
                                                      Oregon Revised Statute 468.126                        Section 12(d) of the National                         ozone nonattainment area (hereinafter
                                                    prohibits the ODEQ from imposing a                      Technology Transfer and Advancement                   referred to as the ‘‘Atlanta Area’’). The
                                                    penalty for violation of an air, water or               Act of 1995 (15 U.S.C. 272 note) because              Atlanta Area is comprised of 15
                                                    solid waste permit unless the source has                this action does not involve technical                counties in Atlanta (Bartow, Cherokee,
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                                                    been provided five days’ advanced                       standards; and                                        Clayton, Cobb, Coweta, DeKalb,
                                                    written notice of the violation and has                    • does not provide the EPA with the                Douglas, Fayette, Forsyth, Fulton,
                                                    not come into compliance or submitted                   discretionary authority to address, as                Gwinnett, Henry, Newton, Paulding,
                                                    a compliance schedule within that five-                 appropriate, disproportionate human                   and Rockdale). This action is being
                                                    day period. By its terms, the statute does              health or environmental effects, using                taken pursuant to the Clean Air Act and
                                                    not apply to Oregon’s title V program or                practicable and legally permissible                   its implementing regulations.
                                                    to any program if application of the                    methods, under Executive Order 12898                  DATES: Written comments must be
                                                    notice provision would disqualify the                   (59 FR 7629, February 16, 1994).                      received on or before April 21, 2017.


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Document Created: 2017-03-22 03:59:02
Document Modified: 2017-03-22 03:59:02
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before April 21, 2017.
ContactKristin Hall, Air Planning Unit, Office of Air and Waste (OAW-150), Environmental Protection Agency-- Region 10, 1200 Sixth Ave., Seattle, WA 98101; telephone number: (206)
FR Citation82 FR 14654 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Lead; Nitrogen Dioxide; Ozone; Particulate Matter; Reporting and Recordkeeping Requirements; Sulfur Oxides and Volatile Organic Compounds

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