82_FR_22009 82 FR 21919 - Approval and Promulgation of Implementation Plans; Texas; Revisions to Emissions Banking and Trading Programs and Compliance Flexibility

82 FR 21919 - Approval and Promulgation of Implementation Plans; Texas; Revisions to Emissions Banking and Trading Programs and Compliance Flexibility

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 90 (May 11, 2017)

Page Range21919-21927
FR Document2017-09472

Pursuant to the Federal Clean Air Act (CAA or Act), the Environmental Protection Agency (EPA) is approving revisions to the Texas State Implementation Plan (SIP) Emissions Banking and Trading Programs submitted on July 15, 2002; December 22, 2008; April 6, 2010; May 14, 2013; and August 14, 2015. Specifically, we are approving revisions to the Texas Emission Credit, Mass Emissions Cap and Trade, Discrete Emission Credit, and Highly Reactive Volatile Organic Compound Emissions Cap and Trade Programs such that the Texas SIP will include the current state program regulations promulgated and implemented in Texas. We are also approving compliance flexibility provisions for stationary sources using the Texas Emission Reduction Plan submitted on July 15, 2002; May 30, 2007; and July 10, 2015.

Federal Register, Volume 82 Issue 90 (Thursday, May 11, 2017)
[Federal Register Volume 82, Number 90 (Thursday, May 11, 2017)]
[Rules and Regulations]
[Pages 21919-21927]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-09472]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2015-0585; FRL-9960-22-Region 6]


Approval and Promulgation of Implementation Plans; Texas; 
Revisions to Emissions Banking and Trading Programs and Compliance 
Flexibility

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: Pursuant to the Federal Clean Air Act (CAA or Act), the 
Environmental Protection Agency (EPA) is approving revisions to the 
Texas State Implementation Plan (SIP) Emissions Banking and Trading 
Programs submitted on July 15, 2002; December 22, 2008; April 6, 2010; 
May 14, 2013; and August 14, 2015. Specifically, we are approving 
revisions to the Texas Emission Credit, Mass Emissions Cap and Trade, 
Discrete Emission Credit, and Highly Reactive Volatile Organic Compound 
Emissions Cap and Trade Programs such that the Texas SIP will include 
the current state program regulations promulgated and implemented in 
Texas. We are also approving compliance flexibility provisions for 
stationary sources using the Texas Emission Reduction Plan submitted on 
July 15, 2002; May 30, 2007; and July 10, 2015.

DATES: This rule is effective on July 10, 2017 without further notice, 
unless the EPA receives relevant adverse comment by June 12, 2017. If 
the EPA receives such comment, the EPA will publish a timely withdrawal 
in the Federal Register informing the public that this rule will not 
take effect.

ADDRESSES: Submit your comments, identified by Docket No. EPA-R06-OAR-
2015-0585, at http://www.regulations.gov or via email to 
[email protected]. 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, please contact Adina Wiley, 214-665-
2115, [email protected]. For 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.
    Docket: The index to the docket for this action is available 
electronically at www.regulations.gov and in hard copy at EPA Region 6, 
1445 Ross Avenue, Suite 700, Dallas, Texas. While all documents in the 
docket are listed in the index, some information may be publicly 
available only at the hard copy location (e.g., copyrighted material), 
and some may not be publicly available at either location (e.g., CBI).

FOR FURTHER INFORMATION CONTACT: Adina Wiley, 214-665-2115, 
[email protected]. To inspect the hard copy materials, please 
schedule an appointment with Ms. Adina Wiley or Mr. Bill Deese at 214-
665-7253.

[[Page 21920]]


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

I. Background

A. CAA and SIPs

    Section 110 of the CAA requires states to develop and submit to the 
EPA a SIP to ensure that state air quality meets the National Ambient 
Air Quality Standards (NAAQS). These ambient standards currently 
address six criteria pollutants: Carbon monoxide, nitrogen dioxide, 
ozone, lead, particulate matter, and sulfur dioxide. Each federally-
approved SIP protects air quality primarily by addressing air pollution 
at its point of origin through air pollution regulations and control 
strategies. The EPA approved SIP regulations and control strategies are 
federally enforceable.
    The Texas SIP includes several discretionary emissions trading 
programs developed consistent with the EPA's Economic Incentive Program 
Guidance, that are designed to promote flexibility and innovation in 
complying with State and Federal air emission requirements established 
in the SIP and the SIP-approved air permitting programs.\1\ This direct 
final action will address the revisions to the Texas Emission Credit 
(EC), Mass Emissions Cap and Trade (MECT), Discrete Emission Credit 
(DEC), and Highly Reactive Volatile Organic Compound Emissions Cap and 
Trade (HECT) programs that were submitted to the EPA on July 15, 2002; 
December 22, 2008; April 6, 2010; May 14, 2013; and August 14, 2015, 
where the EPA has not yet taken an action on such revisions. This 
direct final action also addresses another method for compliance 
flexibility for stationary sources using the Texas Emission Reduction 
Plan (TERP) as submitted to the EPA on July 15, 2002; May 30, 2007; and 
July 10, 2015. Where the TCEQ also adopted and submitted revisions to 
other parts of the Texas SIP, those revisions have been addressed in 
separate rulemakings. Please see the Technical Support Documents 
accompanying this rulemaking for an identification of the specific 
sections impacted by this direct final rulemaking.
---------------------------------------------------------------------------

    \1\ ``Improving Air Quality with Economic Incentive Programs'' 
(EIP Guidance) (EPA-452/R-01-001, January 2001) is the EPA guidance 
document for reviewing and approving discretionary EIP submittals. 
The EIP Guidance applies to the establishment of a discretionary EIP 
for attaining or maintaining the national ambient air quality 
standards (NAAQS) for criteria pollutants. The EIP Guidance 
supersedes and takes precedence over the discretionary EIP guidance 
provided in prior documents such as the 1994 EIP (April 7, 1994, 59 
FR 16690, 40 CFR part 51, subpart U) and the guidance in the 
emission trading policy statement (ETPS) (December 4, 1986, 51 FR 
43813).
---------------------------------------------------------------------------

B. Overview of the Texas Emissions Banking and Trading Programs

1. The Emission Credit (EC) Program
    The EC Program enacted at 30 Texas Administrative Code (TAC) 
Chapter 101, Subchapter H, Division 1 allows owners or operators of a 
facility or mobile source to generate emission credits by reducing 
emissions of criteria pollutants or their precursors, with the 
exception of lead, below any applicable regulations or requirements. 
Emission credits are generated and banked in terms of rate (tons per 
year). Emission credits, or ECs, encompass reductions generated and 
banked from stationary sources as emission reduction credits (ERCs) or 
generated and banked from mobile sources as mobile emission reduction 
credits (MERCs). The ECs from the bank have traditionally been used as 
offsets for the permitting of major new or modified facilities in 
nonattainment areas. ECs have also been banked and traded for 
alternative compliance with Reasonably Available Control Technology 
(RACT) requirements. The EPA initially approved the EC program on 
September 6, 2006 (71 FR 52698) with updates approved on May 18, 2010 
(75 FR 27647).
    On June 5, 2015, the TCEQ adopted revisions to the EC Program, 
including renaming the program to the Emission Credit Program and 
revising provisions for mobile and area source credit generation. The 
June 5, 2015, revisions to the EC Program were submitted to the EPA as 
a SIP revision on August 14, 2015.
2. The Mass Emissions Cap and Trade (MECT) Program
    The MECT Program enacted at 30 TAC Chapter 101, Subchapter H, 
Division 3 is mandatory under the Texas SIP for stationary facilities 
that emit oxides of nitrogen (NOX) in the Houston/Galveston/
Brazoria (HGB) ozone nonattainment area which are subject to emission 
specifications in the TCEQ NOX rules at 30 TAC Sections 
117.310, 117.1210, and 117.2010; and which are located as a site where 
they collectively have an uncontrolled design capacity to emit 10 tons 
per year or more of NOX. The program sets a cap on 
NOX emissions beginning January 1, 2002, with a final 
reduction to the cap occurring in 2007. Facilities are required to meet 
NOX allowances on an annual basis. Facilities may purchase, 
bank, or sell their allowances. The EPA published a final rule 
approving the MECT program on November 14, 2001 (66 FR 57252). The EPA 
has acted on several updates to the MECT program since our initial 
program approval. See prior EPA actions on September 6, 2006 (71 FR 
52698); July 16, 2009 (74 FR 34503); January 2, 2014 (79 FR 57).
    TCEQ adopted additional revisions to the MECT on June 5, 2015, and 
submitted these revisions to the EPA as a SIP revision on August 14, 
2015. The revisions make general updates to the MECT and clarify the 
use of allowances for Nonattainment New Source Review (NNSR) offsets. 
This rulemaking addresses all revisions to the MECT submitted on August 
14, 2015.
3. The Discrete Emission Credit (DEC) Program
    The DEC Program enacted at 30 TAC Chapter 101, Subchapter H, 
Division 4 allows an owner or operator of a facility or mobile source 
to generate discrete emission credits by reducing emissions of criteria 
pollutants or their precursors, with the exception of lead, below any 
applicable regulation or requirement. Discrete emission credits (DECs) 
are quantified, banked and traded in terms of mass (tons), not a rate 
as is the case with ECs. DECs may be generated from stationary sources 
and banked as discrete emission reduction credits (DERCs) or may be 
generated from mobile sources and banked as mobile discrete emission 
reduction credits (MDERCs). Traditionally DECs have been used for 
Reasonably Available Control Technology (RACT) compliance for (Volatile 
Organic Compounds) VOCs and NOX; DECs can also be used to 
offset new major sources or major modifications to existing sources in 
nonattainment areas. The EPA initially approved the DEC Program on 
September 6, 2006, with updates approved on May 18, 2010 (75 FR 27644).
    TCEQ has adopted and submitted revisions to the DEC Program on 
December 22, 2008 and May 14, 2013 to address the use of DERCs in the 
Dallas-Fort Worth (DFW) ozone nonattainment area. Additional revisions 
to the DEC program adopted on June 5, 2015, and submitted August 14, 
2015, rename the program to the Discrete Emission Credit Program, 
further revise the provisions specific to DERC use in DFW, and address 
the generation of area and mobile source credits. The EPA is addressing 
all pending revisions to the DEC Program in this action.

[[Page 21921]]

4. The Highly Reactive Volatile Organic Compound (HRVOC) Emissions Cap 
and Trade (HECT) Program
    The HECT Program enacted at 30 TAC Chapter 101, Subchapter H, 
Division 6 is mandatory for covered facilities including vent gas 
streams, flares, and cooling tower heat exchange systems that emit 
HRVOCs, as defined in 30 TAC Section 115.10, and that are located at a 
site subject to Chapter 115, Subchapter H. The EPA published final 
approval of the HECT program on September 6, 2006 (71 FR 52659).
    Since our initial approval of the HECT program, the TCEQ adopted 
revisions on March 10, 2010, in conjunction with the development of the 
HGB 1997 eight-hour ozone attainment demonstration; these HECT 
amendments were submitted as revisions to the Texas SIP on April 6, 
2010. On January 2, 2014, the EPA approved the majority of these HECT 
amendments in concert with our final approval of the HGB attainment 
demonstration for the 1997 eight-hour ozone standard (79 FR 57). Note 
that we did not take action on the submitted revision to 30 TAC Section 
101.396(b) at the request of the state.
    The TCEQ adopted revisions to the HECT program on June 5, 2015, and 
submitted these revisions to the SIP on August 14, 2015. The submitted 
revisions clarify the use of HECT allowances as NNSR offsets, update 
the equations for allowance allocations, update provisions for changing 
site ownership, and revise provisions to clarify data substation for 
reporting.
    This rulemaking addresses the remaining revision to 30 TAC Section 
101.396(b) from the April 6, 2010 submittal and all revisions to the 
HECT submitted on August 14, 2015.

C. Compliance Flexibility With the Texas Emission Reduction Plan (TERP)

    The TERP, implemented with provisions in 30 TAC Chapter 114, 
Subchapter K, is a SIP-approved program that provides financial 
incentives for reducing emissions from mobile sources. Examples of TERP 
grant projects include financial subsidies to upgrade/retrofit diesel 
exhaust systems in school buses and replacing heavy-duty and light-duty 
on-road diesel vehicles with alternative fuel and hybrid vehicles. TCEQ 
adopted new revisions to promote compliance flexibility for stationary 
sources subject to NOX control requirements either under the 
MECT or under the requirements of 30 TAC Chapter 117 by requiring 
partial compliance with the stationary source obligation while 
simultaneously funding mobile emission reductions achieved through the 
TERP for a set period of time. The compliance flexibility provisions 
for sources subject to the MECT were initially adopted on March 13, 
2002 and submitted as SIP revisions on July 15, 2002 as new 30 TAC 
Section 101.357; no changes have been made since this initial adoption 
and submittal. The compliance flexibility provisions for sources 
subject to the NOX control requirements in Chapter 117 were 
initially adopted on March 13, 2002 and submitted as a SIP revision on 
July 15, 2002 as 30 TAC Section117.571. TCEQ has revised this section 
twice since its initial adoption. Revisions adopted May 23, 2007, and 
submitted as a SIP revision on May 30, 2007, recodified and revised the 
provisions as 30 TAC Section 117.9810. The TCEQ adopted further 
revisions to 30 TAC Section 117.9810 on June 3, 2015, and submitted 
these provisions as a SIP revision on July 10, 2015; this section now 
only applies to DFW area sources that seek to use emission reductions 
generated from TERP to meet NOX emission control 
requirements.

II. The EPA's Evaluation

    The TSDs for this action include a detailed analysis of the 
revisions submitted for EPA's consideration. In many instances the 
revisions are minor or non-substantive in nature and do not change the 
intent of the original SIP-approved program. Following is a summary of 
our analysis for those revisions that we view as substantive revisions 
to our initial SIP-approvals.

A. Revisions to the MECT and HECT for Using Allowances as NNSR Offsets

    In the August 14, 2015 submittal, the TCEQ expanded the MECT 
program at 30 TAC Section 101.352 and the HECT Program at 30 TAC 
Section 101.393, such that MECT allowances can be used for the entirety 
of the NNSR NOX offset obligation and HECT allowances can be 
used for the entirety of the NNSR VOC offset obligation, rather than 
just the 1:1 portion of the offset, as long as the use is authorized in 
a NNSR permit issued under the SIP-approved NNSR program at 30 TAC 
Chapter 116, Subchapter B. The TCEQ adopted and submitted additional 
clarifications to both the MECT and HECT Program regulations that 
clarify the applicable offset obligation will be met by a permanent 
stream of allowances and not through the use of a banked, or vintage 
allowance or an allowance allocated based on allowable emissions. The 
owner or operator of the facility must have the necessary allowances in 
the respective compliance account 30 days prior to operation. The TCEQ 
will set-aside the portion of allowances for the 1:1 offset obligation; 
the owner/operator is required to set aside additional allowances if 
there is a short fall in the offset obligation due to allowance 
devaluation. The TCEQ will also permanently retire the allowances used 
for the environmental benefit portion of the offset obligation (the 
greater than 1:1 portion of the offset obligation). The TCEQ also 
provides the mechanism under the MECT or HECT Programs where the owner 
or operator can request the release of allowances if an alternative 
means of compliance with the offset obligation is approved. The TCEQ 
will not retroactively release allowances and the portion of allowances 
retired for the environmental benefit contribution will not be 
released.
    The requirements for NNSR offsets are established under section 
173(c) of the CAA. Section 173(c)(1) provides that an owner or operator 
of a stationary source may comply with any offset requirement by 
obtaining emission reductions of the air pollutant from the same source 
or other sources in the same nonattainment area. Emission reductions 
used for offsets must be in effect and enforceable by the time the new 
or modified source commences operation and ensure that the total 
tonnage of increased emissions of the air pollutant shall be offset by 
the equal or greater reduction in actual emissions. Sections 
173(c)(1)(A) and (B) provide exceptions to the location of the 
offsetting emission reductions by providing that reductions may be 
achieved in another nonattainment area if the area is of an equal or 
higher nonattainment classification and emissions from the other area 
contribute to a violation of the NAAQS in the nonattainment area where 
the source will be located. Section 173(c)(2) provides that emission 
reductions required elsewhere under the Act will not be creditable as 
emission reductions for purposes of NNSR offsets. The EPA regulations 
pertaining to NNSR offset requirements are found at 40 CFR 
51.165(a)(3).
    The EPA has provided specific guidance for the interactions between 
multi-source emission cap and trade programs and the NNSR permitting 
program in our EIP Guidance under sections 6.3(d) and Appendix 16.14. 
Together, these sections provide that reductions from an EIP can be 
used for NNSR purposes provided that the emission reductions 
independently meet the relevant NNSR requirements in the CAA and in 
EPA's regulations and guidance. Further, major sources and 
modifications may not be exempted

[[Page 21922]]

from NSR requirements and the reductions under the EIP may not be used 
for netting unless they occur contemporaneously with use and occur at 
the same source as the emission increase. The EIP Guidance reiterates 
that reductions used for NNSR offsets must be federally enforceable and 
satisfy the requirements of CAA section 173(c).
    The revisions to the MECT and HECT offset provisions continue to 
satisfy the offset requirements under CAA Section 173(c). First as to 
location, an owner/operator with a NOX offset obligation in 
the HGB area could use the MECT allowances to satisfy the offset 
obligation since the allowances are provided in the HGB ozone 
nonattainment area. Similarly, an owner/operator with a VOC offset 
obligation in the HGB area could use the HECT allowances to satisfy the 
offset obligation since the allowances are provided in the HGB ozone 
nonattainment area. The use of allowances for the entirety of the 
offset obligation is not restricted by the CAA, nor is it restricted 
under the EPA's EIP at Appendix 16.14. The MECT and HECT revisions 
specify that the allowances must be obtained 30 days prior to 
commencement of operation, ensuring that the requirements under CAA 
section 173(c)(1) regarding timing are satisfied. A source from outside 
the HGB ozone nonattainment area could theoretically use MECT 
allowances for NOX offset compliance or HECT allowances for 
VOC offset compliance, provided that the HGB ozone nonattainment area 
is of equal or greater nonattainment designation and that the source 
could demonstrate emissions from HGB contribute to a NAAQS violation in 
the other nonattainment area of use. The EPA believes that the 
possibility of the use of MECT or HECT allowances for an offset 
obligation outside of the HGB area will be extremely limited because 
any source trying to use MECT or HECT allowances outside of the HGB 
would be obligated to make the above-referenced demonstrations under 
CAA section 173(c)(1)(A) and (B) to ensure that the CAA is satisfied. 
Finally, the MECT and HECT caps and the pending revisions to the MECT 
and HECT programs are not required by the CAA; therefore, MECT or HECT 
allowances would be creditable for offset purposes under CAA section 
173(c)(2).
    The revisions to the MECT and HECT also satisfy the NNSR offset 
criteria established in EPA's EIP Guidance, Appendix 16.14. The use of 
MECT or HECT allowances for netting out of NNSR requirements is 
prohibited under the SIP-approved program requirements. Ultimately, by 
using a permanent stream of allowances to satisfy the entirety of the 
NNSR offset obligation, the overall MECT or HECT cap will be reduced. 
Therefore, the air shed will be protected while still providing for 
future growth consistent with the goals of the CAA and the NNSR 
program.

B. Revisions to How DERCs Are Used as NNSR Offsets

    The August 14, 2015 submitted revisions to the DEC Program included 
revisions on how DERCs can be used as NNSR offsets and how this usage 
is accounted for in the applicable NNSR permit. The current SIP-
approved language requires that if DECs are to be used for the offset 
obligation in an NNSR permit, the applicable permit will include an 
enforceable requirement that the facility obtain at least one 
additional year of DECs for offsets before continuing operation; this 
creates a rolling requirement for the owner/operator of the stationary 
source to obtain and request approval for the use of DECs each year 
under an NNSR permit. In the August 14, 2015 submittal, the TCEQ 
revised the regulations so that the prior language applies only to the 
use of MDERCs as NNSR offsets. For DERCs, the user must complete an 
application form to use DERCs at least 90 days before operation and at 
least 90 days before continuing operation for any period that was not 
included in the initial application. This change has been made to 
reflect that users of DERCs for offsets are generally obtaining 
sufficient DERCs to cover several years of operation, if not the 
entirety of the expected lifetime of the source, before commencing 
construction. In those situations, the prior SIP-approved language 
created an undue burden on the owner or operator to annually submit 
paperwork when the DERCs had already been obtained and approved for 
use. Under the revised regulations, the enforceable commitment to 
obtain sufficient DERCs is the NNSR permit requirement that emissions 
must be offset prior to the commencement of operation. If the owner or 
operator is using DERCs for the offset obligation they still must 
obtain the DERCs in advance of operation and have those DERCs approved 
for use by the TCEQ Executive Director. While the submitted revisions 
change the method in which users of DERCs as NNSR offsets request 
approval of such use from the TCEQ, the underlying premise of using 
DERCs as NNSR offsets is unchanged. The change in methodology is 
consistent with the offset requirements of the CAA at 173(c)(1) that 
require the offsets to be in effect and enforceable by the time the 
source commences operation.

C. Use of DERCs in the DFW Ozone Nonattainment Area

    On December 22, 2008, the TCEQ submitted revisions to the Texas SIP 
Narrative and the state's Emissions Banking and Trading Rules at 30 TAC 
Sections 101.376 and 101.379 to address the use of DERCs in the DFW 
nonattainment area with respect to the 1997 eight-hour ozone NAAQS. The 
submitted regulations created an enforceable mechanism to restrict the 
use of DERCs in the DFW eight-hour ozone nonattainment area through the 
establishment of the DFW DERC limit. The DFW DERC limit was calculated 
as a ton per day limit based on the TCEQ's photochemical modeling 
demonstration, emission reductions from fleet turnover that were not 
used to satisfy attainment SIP contingency measures and DERCs generated 
and not used after the inception of the DFW DERC limit.
    The TCEQ submitted the DFW attainment demonstration for the 2008 
ozone NAAQS on July 10, 2015, with updates submitted on August 5, 2016. 
As part of these revisions, the TCEQ reevaluated the DERC usage 
limitations for the DFW area. The TCEQ determined that the previously 
adopted and submitted DFW DERC limit calculation was unsustainable. The 
July 10, 2015 submittal included sensitivity analyses that modeled a 
fixed 17.0 tpd limit and enabled the DFW area to reach attainment. The 
TCEQ submitted the revised DFW DERC limit and associated revisions to 
the DERC regulations in the August 14, 2015 submittal.
    In addition to the limit on DERC usage in DFW, the TCEQ adopted and 
submitted an exemption from this limit in the December 22, 2008 with 
updates submitted on May 14, 2013. This exemption is specific to DERCs 
used in the DFW area in response to an emergency situation declared by 
the Electric Reliability Council of Texas (ERCOT) where the safety or 
reliability of the Texas electric grid is compromised or threatened. 
The EPA finds this exemption approvable because the TCEQ Executive 
Director can only approve these requests if all other requirements for 
DERC usage are satisfied. The DERC usage requirements are protective of 
the NAAQS by requiring the TCEQ Executive Director to consider the 
locations requested for DERC usage and determine whether the requested 
use would cause or contribute to a violation of the NAAQS through ozone 
spike formation.

[[Page 21923]]

    The EPA is taking action now to evaluate and approve the revisions 
to the DEC regulations themselves that adopt and implement the DERC 
usage limit for the DFW ozone nonattainment area as submitted on 
December 22, 2008, and revised in the May 14, 2013 and August 14, 2015 
submittals. The EPA believes it is appropriate to approve the 
regulations to restrict DERC usage in the DFW nonattainment area. We 
support the use of a fixed daily limit as provided in the sensitivity 
analyses of the DFW Attainment Demonstration for the 2008 ozone NAAQS 
because of the clarity provided to the sources using DERCs and the TCEQ 
in implementing the usage restrictions. We find that the adopted 
revisions for the DFW DERC limit are sufficient to restrict DERC usage 
consistent with the levels modeled by the TCEQ in the DFW Attainment 
Demonstration for the 2008 ozone NAAQS. While this direct final action 
approves the regulations for the DFW DERC limit, we are not evaluating 
the DFW Attainment Demonstration at this time.

D. Analysis of Compliance Flexibility With TERP

    Site owners or operators subject to the MECT in HGB or the Chapter 
117 NOX requirements for DFW \2\ have an obligation to meet 
certain NOX emission limits. Site owners or operators unable 
to meet these emission limitations and desiring to use TERP emission 
reductions for compliance relief, can petition the TCEQ Executive 
Director for a determination of technical infeasibility. The 
regulations state that an owner or operator should demonstrate that 
they cannot comply with the entirety of the NOX obligation 
at the current time, but rather can comply with 80% of their 
obligation. The owner or operator must further demonstrate that the 
source will be in full compliance with the NOX obligation 
within 5 years of the compliance deadline. In determining whether to 
grant the petition for technical infeasibility, the TCEQ Executive 
Director will consider at a minimum: Current technology, adaptability 
of technology to a specific source, age and projected useful life of 
the source and cost benefits at the time of application. If the TCEQ 
Executive Director agrees with the petition for technical 
infeasibility, the site owner or operator can defer 20% of their 
NOX compliance obligation by paying into the TERP fund at a 
cost of $75,000 per ton of NOX emissions; not to exceed 25 
tons per year or 0.5 tons per day on a site-wide basis. The TCEQ uses 
this money to fund TERP projects to benefit the community where the 
site using the emissions reductions is located. Because the cost per 
ton of NOX ($75,000 per ton) is much greater than the cost 
effectiveness of TERP programs (an average of $6,165 per ton from the 
beginning of TERP in 2002 through August 31, 2015) \3\ it is expected 
that this provision will allow for much greater emission reductions and 
much greater environmental benefit than would otherwise be obtained.
---------------------------------------------------------------------------

    \2\ The compliance flexibility provisions under 30 TAC Section 
117.9810 can be used by DFW area sources subject to the requirements 
at 30 TAC Sections 117.405 (reasonably available control 
technology), 117.410 (major sources), or 117.1310 (electric 
generating sources).
    \3\ March 22, 2016 email from Steve Dayton, TCEQ, to Clovis 
Steib, EPA Region 6.
---------------------------------------------------------------------------

E. Analysis Under Section 110(l) of the CAA

    Our analysis indicates that the July 15, 2002; December 22, 2008; 
April 6, 2010; May 14, 2013, and August 14, 2015 submitted revisions to 
the Texas EC, MECT, DEC, and HECT Programs were adopted and submitted 
as revisions to the Texas SIP after reasonable notice and public 
hearing. The Texas EC and DEC programs are SIP approved programs that 
provide for compliance flexibility and generation and use of emission 
credits in the SIP-approved NNSR permitting program. The Texas MECT and 
HECT are necessary components of the HGB nonattainment requirements. 
The submitted revisions to the EC, MECT, DEC and HECT clarify and 
update the existing programs--these submitted revisions do not change 
the fundamental premise or structure of the programs. Therefore, we 
find that the revisions to the EC, MECT, DEC and HECT will not 
interfere with attainment, reasonable further progress or any other 
applicable requirements of the Act.
    The revisions to the MECT adopted on March 13, 2002, and submitted 
on July 15, 2002, establish a new provision under the MECT allowing for 
compliance flexibility with MECT requirements by using TERP projects. 
Similarly, the compliance flexibility provisions for Chapter 117 
NOX obligations in DFW initially submitted on July 15, 2002 
and revised on May 30, 2007, and July 14, 2015, establish the ability 
for a source to comply with NOX obligations by funding TERP 
projects. The EPA believes that the compliance flexibility afforded 
under 30 TAC Sections 101.357 and 117.9810 is approvable and, if used, 
would result in an equal or greater reduction of NOX 
emissions in the respective airshed from a combination of stationary 
and mobile sources. Therefore, these compliance flexibility provisions 
will not interfere with any applicable requirement concerning 
attainment and reasonable further progress, or any other applicable 
requirement of this CAA.

III. Final Action

    We are approving through a direct final action the submitted 
revisions to the Texas Emissions Banking and Trading Programs from July 
15, 2002; December 22, 2008; April 6, 2010; May 14, 2013; and August 
14, 2015. The EPA has determined that these revisions are approvable 
because the submitted rules were adopted and submitted in accordance 
with the CAA and are necessary to update functionality of the SIP-
approved trading programs and are consistent with the CAA and the EPA's 
policy and guidance on emissions trading. Therefore, under section 110 
of the Act, the EPA is approving the following revisions to the Texas 
SIP:
     Revisions to the 30 TAC Chapter 101, Subchapter H, 
Division 1 Title submitted August 14, 2015;
     Revisions to 30 TAC Section 101.300 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.301 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.302 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.303 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.306 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.309 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.350 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.351 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.352 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.353 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.354 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.356 adopted on June 3, 
2015 and submitted August 14, 2015;
     New 30 TAC Section 101.357 adopted on March 13, 2002 and 
submitted July 15, 2002;

[[Page 21924]]

     Repeal of 30 TAC Section 101.358 adopted on June 3, 2015 
and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.359 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.360 adopted on June 3, 
2015 and submitted August 14, 2015.
     Revisions to the 30 TAC Chapter 101, Subchapter H, 
Division 4 Title submitted August 14, 2015;
     Revisions to 30 TAC Section 101.370 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.371 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.372 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.373 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.376 adopted on December 
10, 2008 and submitted December 22, 2008;
     Revisions to 30 TAC Section 101.376 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.378 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.379 adopted on December 
10, 2008 and submitted December 22, 2008;
     Revisions to 30 TAC Section 101.379 adopted on April 10, 
2013 and submitted May 14, 2013;
     Revisions to 30 TAC Section 101.379 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to the 30 TAC Chapter 101, Subchapter H, 
Division 6 Title submitted August 14, 2015;
     Revisions to 30 TAC Section 101.390 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.391 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.392 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.393 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.394 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.396(b) adopted on March 
10, 2010 and submitted on April 6, 2010;
     Revisions to 30 TAC Section 101.396 adopted on June 3, 
2015 and submitted August 14, 2015;
     Revisions to 30 TAC Section 101.399 adopted on June 3, 
2015 and submitted August 14, 2015; and
     Revisions to 30 TAC Section 101.400 adopted on June 3, 
2015 and submitted August 14, 2015.
    The EPA has also determined that the revisions to the 
NOX requirements under 30 TAC Chapter 117 submitted on July 
15, 2002; May 30, 2007; and July 10, 2015 allowing for compliance 
flexibility using the TERP are approvable and were adopted and 
submitted in accordance with the CAA. Therefore, under section 110 of 
the Act, the EPA is approving the following revisions to the Texas SIP:
     Revisions to 30 TAC Section 117.571 adopted on March 13, 
2002, and submitted July 15, 2002;
     The recodification of 30 TAC Section 117.571 as new 30 TAC 
Section 117.9810 adopted on May 23, 2007, and submitted on May 30, 
2007; and
     Revisions to 30 TAC Section 117.9810 adopted on June 3, 
2015, and submitted on July 10, 2015.
    Additionally, we are making a non-substantive revision and a 
ministerial correction to the table in 40 CFR 52.2270(c). The EPA is 
making a non-substantive revision at 40 CFR 52.2270(c) to remove a 
duplicative entry for 30 TAC Section 117.9800--Use of Emission Credits 
for Compliance. The EPA initially approved this section as submitted by 
the State on April 6, 2012, on July 31, 2014 (79 FR 44300). We then 
approved revisions to this section submitted by the State on July 3, 
2015, on April 13, 2016 (81 FR 21750), but did not remove the initial 
entry of our approval from the table. Additionally, we are making a 
ministerial correction to reflect that 30 TAC Section 117.410(c), 
(pertaining to carbon monoxide and ammonia emissions), is not in the 
EPA-approved Texas SIP. Our April 13, 2016 final action on the Texas 
SIP did not properly update the CFR table to show a recodification of 
subsections in 30 TAC Section 117.410 (81 FR 21750). The EPA is also 
revising the table in 40 CFR 52.2270(e) for Nonregulatory and Quasi-
Regulatory Measures to reflect our final action on the DERC SIP 
Narrative adopted on December 10, 2008 and submitted on December 22, 
2008 by the State.
    The EPA is publishing this rule without prior proposal because we 
view this as a non-controversial amendment and anticipate no adverse 
comments. However, in the proposed rules section of this Federal 
Register publication, we are publishing a separate document that will 
serve as the proposal to approve the SIP revision if relevant adverse 
comments are received. This rule will be effective on July 10, 2017 
without further notice unless we receive relevant adverse comment by 
June 12, 2017. If we receive relevant adverse comments, we will publish 
a timely withdrawal in the Federal Register informing the public that 
the rule will not take effect. We will address all public comments in a 
subsequent final rule based on the proposed rule. We will not institute 
a second comment period on this action. Any parties interested in 
commenting must do so now. Please note that if we receive relevant 
adverse comment on an amendment, paragraph, or section of this rule and 
if that provision may be severed from the remainder of the rule, we may 
adopt as final those provisions of the rule that are not the subject of 
an adverse comment.

IV. Incorporation by Reference

    In this rule, we are finalizing regulatory text that includes 
incorporation by reference. In accordance with the requirements of 1 
CFR 51.5, we are finalizing the incorporation by reference of the 
revisions to the Texas regulations as described in the Final Action 
section above. We have made, and will continue to make, these documents 
generally available electronically through www.regulations.gov and/or 
in hard copy at the EPA Region 6 office.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, the EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this 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);

[[Page 21925]]

     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. The EPA will submit a report containing this rule and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by July 10, 2017. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for the purposes of judicial review nor does 
it extend the time within which a petition for judicial review may be 
filed, and shall not postpone the effectiveness of such rule or action. 
This action may not be challenged later in proceedings to enforce its 
requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

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

    Samuel Coleman was designated the Acting Regional Administrator on 
April 27, 2017, through the order of succession outlined in Regional 
Order R6-1110.1, a copy of which is included in the docket for this 
action.

    Dated: April 27, 2017.
Samuel Coleman,
Acting Regional Administrator, Region 6.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

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

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

Subpart SS--Texas

0
2. In Sec.  52.2270:
0
a. In paragraph (c), the table titled ``EPA Approved Regulations in the 
Texas SIP'' is amended by:
0
i. Revising the centered headings for Divisions 1, 4 and 6 under 
Chapter 101, Subchapter H and the entries for Sections 101.300-101.303, 
101.306, 101.309, 101.350-101.354, 101.356, 101.359, 101.360, 101.370-
101.373, 101.376, 101.378, 101.379, 101.390-101.394, 101.396, 101.399, 
101.400, and 117.410;
0
ii. Removing the entry for Section 101.358 and the second entry for 
Section 117.9800; and
0
iii. Adding in numerical order entries for Sections 101.357 and 
117.9810.
0
b. In paragraph (e), the second table titled ``EPA Approved 
Nonregulatory Provisions and Quasi-Regulatory Measures in the Texas 
SIP'' is amended by adding the entry ``Discrete Emissions Reduction 
Credits (DERC) SIP'' at the end.
    The revisions and additions read as follows:


Sec.  52.2270   Identification of plan.

* * * * *
    (c) * * *

                                    EPA-Approved Regulations in the Texas SIP
----------------------------------------------------------------------------------------------------------------
                                                             State
                                                           approval/
          State citation              Title/subject        submittal     EPA approval date       Explanation
                                                             date
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                     Chapter 101--General Air Quality Rules
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                   Subchapter H--Emissions Banking and Trading
----------------------------------------------------------------------------------------------------------------
                                       Division 1--Emission Credit Program
----------------------------------------------------------------------------------------------------------------
Section 101.300..................  Definitions........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.301..................  Purpose............        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.302..................  General Provisions.        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].

[[Page 21926]]

 
Section 101.303..................  Emission Reduction         6/3/2015  5/11/2017, [Insert   ...................
                                    Credit Generation                    Federal Register
                                    and Certification.                   citation].
 
                                                  * * * * * * *
Section 101.306..................  Emission Credit Use        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.309..................  Emission Credit            6/3/2015  5/11/2017, [Insert   ...................
                                    Banking and                          Federal Register
                                    Trading.                             citation].
 
                                                  * * * * * * *
Section 101.350..................  Definitions........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.351..................  Applicability......        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.352..................  General Provisions.        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.353..................  Allocation of              6/3/2015  5/11/2017, [Insert   ...................
                                    Allowances.                          Federal Register
                                                                         citation].
Section 101.354..................  Allowance                  6/3/2015  5/11/2017, [Insert   ...................
                                    Deductions.                          Federal Register
                                                                         citation].
Section 101.356..................  Allowance Banking          6/3/2015  5/11/2017, [Insert   ...................
                                    and Trading.                         Federal Register
                                                                         citation].
Section 101.357..................  Use of Emission           3/13/2002  5/11/2017, [Insert   ...................
                                    Reductions                           Federal Register
                                    Generated from the                   citation].
                                    Texas Emissions
                                    Reduction Plan
                                    (TERP).
Section 101.359..................  Reporting..........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.360..................  Level of Activity          6/3/2015  5/11/2017, [Insert   ...................
                                    Certification.                       Federal Register
                                                                         citation].
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------
                                  Division 4--Discrete Emission Credit Program
----------------------------------------------------------------------------------------------------------------
Section 101.370..................  Definitions........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.371..................  Purpose............        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.372..................  General Provisions.        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.373..................  Discrete Emission          6/3/2015  5/11/2017, [Insert   ...................
                                    Reduction Credit                     Federal Register
                                    Generation and                       citation].
                                    Certification.
 
                                                  * * * * * * *
Section 101.376..................  Discrete Emission          6/3/2015  5/11/2017, [Insert   ...................
                                    Credit Use.                          Federal Register
                                                                         citation].
Section 101.378..................  Discrete Emission          6/3/2015  5/11/2017, [Insert   ...................
                                    Credit Banking and                   Federal Register
                                    Trading.                             citation].
Section 101.379..................  Program Audits and         6/3/2015  5/11/2017, [Insert   ...................
                                    Reports.                             Federal Register
                                                                         citation].
----------------------------------------------------------------------------------------------------------------
              Division 6--Highly Reactive Volatile Organic Compound Emissions Cap and Trade Program
----------------------------------------------------------------------------------------------------------------
Section 101.390..................  Definitions........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.391..................  Applicability......        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.392..................  Exemptions.........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.393..................  General Provisions.        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
Section 101.394..................  Allocation of              6/3/2015  5/11/2017, [Insert   ...................
                                    Allowances.                          Federal Register
                                                                         citation].
Section 101.396..................  Allowance                  6/3/2015  5/11/2017, [Insert   ...................
                                    Deductions.                          Federal Register
                                                                         citation].

[[Page 21927]]

 
Section 101.399..................  Allowance Banking          6/3/2015  5/11/2017, [Insert   ...................
                                    and Trading.                         Federal Register
                                                                         citation].
Section 101.400..................  Reporting..........        6/3/2015  5/11/2017, [Insert   ...................
                                                                         Federal Register
                                                                         citation].
 
                                                  * * * * * * *
Section 117.410..................  Emission                   6/3/2015  4/13/2016, 81 FR     117.410(c) NOT in
                                    Specifications for                   21750.               SIP.
                                    Eight-Hour
                                    Attainment
                                    Demonstration
                                    Reporting.
 
                                                  * * * * * * *
Section 117.9810.................  Use of Emission            6/3/2015  5/11/2017, [Insert   ...................
                                    Reductions                           Federal Register
                                    Generated from the                   citation].
                                    Texas Emissions
                                    Reduction Plan
                                    (TERP).
 
                                                  * * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
    (e) * * *
* * * * *

              EPA-Approved Nonregulatory Provisions and Quasi-Regulatory Measures in the Texas SIP
----------------------------------------------------------------------------------------------------------------
                                                             State
                                        Applicable        submittal/
      Name of SIP provision           geographic or        effective     EPA approval date         Comments
                                    nonattainment area       date
----------------------------------------------------------------------------------------------------------------
 
                                                  * * * * * * *
Discrete Emissions Reduction       Collin, Dallas,          12/10/2008  5/11/2017, [Insert   ...................
 Credits (DERC) SIP.                Denton, Ellis,                       Federal Register
                                    Johnson, Kaufman,                    citation].
                                    Parker, Rockwall
                                    and Tarrant
                                    Counties, TX.
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2017-09472 Filed 5-10-17; 8:45 am]
 BILLING CODE 6560-50-P



                                                                 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations                                         21919

                                             U.S.C. 4321–4370f), and have                              (c) Regulations. (1) No vessel or                   Programs such that the Texas SIP will
                                             determined that this action is one of a                 person may enter, transit through, or                 include the current state program
                                             category of actions that do not                         anchor within the safety zone unless                  regulations promulgated and
                                             individually or cumulatively have a                     authorized by the Captain of the Port                 implemented in Texas. We are also
                                             significant effect on the human                         Detroit, or his on-scene representative.              approving compliance flexibility
                                             environment. This rule involves a safety                  (2) The safety zone is closed to all                provisions for stationary sources using
                                             zone lasting less than three hours per                  vessel traffic, except as may be                      the Texas Emission Reduction Plan
                                             day that will prohibit entry within the                 permitted by the Captain of the Port                  submitted on July 15, 2002; May 30,
                                             1 mile by .2 mile air show site. It is                  Detroit or his on-scene representative.               2007; and July 10, 2015.
                                             categorically excluded under section                      (3) The ‘‘on-scene representative’’ of              DATES: This rule is effective on July 10,
                                             2.B.2, figure 2–1, paragraph 34(g) of the               the Captain of the Port Detroit is any                2017 without further notice, unless the
                                             Instruction. A Record of Environmental                  Coast Guard commissioned, warrant or                  EPA receives relevant adverse comment
                                             Consideration (REC) supporting this                     petty officer or a Federal, State, or local           by June 12, 2017. If the EPA receives
                                             determination is available in the docket                law enforcement officer designated by                 such comment, the EPA will publish a
                                             where indicated in the ADDRESSES                        or assisting the Captain of the Port                  timely withdrawal in the Federal
                                             section of this preamble.                               Detroit to act on his behalf.                         Register informing the public that this
                                                                                                       (4) Vessel operators shall contact the              rule will not take effect.
                                             G. Protest Activities
                                                                                                     Captain of the Port Detroit or his on-                ADDRESSES: Submit your comments,
                                               The Coast Guard respects the First                    scene representative to obtain                        identified by Docket No. EPA–R06–
                                             Amendment rights of protesters.                         permission to enter or operate within                 OAR–2015–0585, at http://
                                             Protesters are asked to contact the                     the safety zone. The Captain of the Port              www.regulations.gov or via email to
                                             person listed in the FOR FURTHER                        Detroit or his on-scene representative                wiley.adina@epa.gov. Follow the online
                                             INFORMATION CONTACT section to                          may be contacted via VHF Channel 16                   instructions for submitting comments.
                                             coordinate protest activities so that your              or at 313–568–9464. Vessel operators                  Once submitted, comments cannot be
                                             message can be received without                         given permission to enter or operate in               edited or removed from Regulations.gov.
                                             jeopardizing the safety or security of                  the regulated area must comply with all               The EPA may publish any comment
                                             people, places or vessels.                              directions given to them by the Captain               received to its public docket. Do not
                                             List of Subjects in 33 CFR Part 165                     of the Port Detroit or his on-scene                   submit electronically any information
                                                                                                     representative.                                       you consider to be Confidential
                                               Harbors, Marine safety, Navigation                                                                          Business Information (CBI) or other
                                                                                                       Dated: May 5, 2017.
                                             (water), Reporting and recordkeeping                                                                          information whose disclosure is
                                             requirements, Security measures,                        Scott B. Lemasters,
                                                                                                     Captain, U.S. Coast Guard, Captain of the             restricted by statute. Multimedia
                                             Waterways.                                                                                                    submissions (audio, video, etc.) must be
                                               For the reasons discussed in the                      Port Detroit.
                                                                                                     [FR Doc. 2017–09554 Filed 5–10–17; 8:45 am]           accompanied by a written comment.
                                             preamble, the Coast Guard amends 33                                                                           The written comment is considered the
                                             CFR part 165 as follows:                                BILLING CODE 9110–04–P
                                                                                                                                                           official comment and should include
                                             PART 165—REGULATED NAVIGATION                                                                                 discussion of all points you wish to
                                             AREAS AND LIMITED ACCESS AREAS                                                                                make. The EPA will generally not
                                                                                                     ENVIRONMENTAL PROTECTION                              consider comments or comment
                                                                                                     AGENCY                                                contents located outside of the primary
                                             ■ 1. The authority citation for part 165
                                             continues to read as follows:                           40 CFR Part 52                                        submission (i.e. on the web, cloud, or
                                                                                                                                                           other file sharing system). For
                                               Authority: 33 U.S.C. 1231; 50 U.S.C. 191;             [EPA–R06–OAR–2015–0585; FRL–9960–22–
                                             33 CFR 1.05–1, 6.04–1, 6.04–6, and 160.5;                                                                     additional submission methods, please
                                                                                                     Region 6]                                             contact Adina Wiley, 214–665–2115,
                                             Department of Homeland Security Delegation
                                             No. 0170.1.                                                                                                   wiley.adina@epa.gov. For the full EPA
                                                                                                     Approval and Promulgation of
                                             ■ 2. Add § 165.T09–0303 to read as                                                                            public comment policy, information
                                                                                                     Implementation Plans; Texas;
                                             follows:                                                                                                      about CBI or multimedia submissions,
                                                                                                     Revisions to Emissions Banking and
                                                                                                                                                           and general guidance on making
                                                                                                     Trading Programs and Compliance
                                             § 165.T09–0303 Safety Zone; Tuskegee                                                                          effective comments, please visit http://
                                             Airmen River Days Air show; Detroit, MI.                Flexibility
                                                                                                                                                           www2.epa.gov/dockets/commenting-
                                               (a) Location. A safety zone is                        AGENCY: Environmental Protection                      epa-dockets.
                                             established to include all U.S. navigable               Agency (EPA).                                            Docket: The index to the docket for
                                             waters of the Detroit River between the                 ACTION: Direct final rule.
                                                                                                                                                           this action is available electronically at
                                             following two lines extending 70 feet off                                                                     www.regulations.gov and in hard copy
                                             the bank to the US/Canadian                             SUMMARY:  Pursuant to the Federal Clean               at EPA Region 6, 1445 Ross Avenue,
                                             demarcation line: the first line is drawn               Air Act (CAA or Act), the                             Suite 700, Dallas, Texas. While all
                                             directly across the channel at position                 Environmental Protection Agency (EPA)                 documents in the docket are listed in
                                             42°19.444′ N., 083°03.114′ W. (NAD 83);                 is approving revisions to the Texas State             the index, some information may be
                                             the second line, to the north, is drawn                 Implementation Plan (SIP) Emissions                   publicly available only at the hard copy
                                             directly across the channel, at position                Banking and Trading Programs                          location (e.g., copyrighted material), and
                                             42°19.860′ N., 083°01.683′ W. (NAD 83).                 submitted on July 15, 2002; December                  some may not be publicly available at
pmangrum on DSK3GDR082PROD with RULES




                                               (b) Enforcement period. The regulated                 22, 2008; April 6, 2010; May 14, 2013;                either location (e.g., CBI).
                                             area described in paragraph (a) of this                 and August 14, 2015. Specifically, we                 FOR FURTHER INFORMATION CONTACT:
                                             section will be enforced from 12:30 p.m.                are approving revisions to the Texas                  Adina Wiley, 214–665–2115,
                                             thru 3 p.m. on June 23, 2017 and June                   Emission Credit, Mass Emissions Cap                   wiley.adina@epa.gov. To inspect the
                                             24, 2017; 3 p.m. through 5:30 p.m. on                   and Trade, Discrete Emission Credit,                  hard copy materials, please schedule an
                                             June 25, 2017; and from 5 p.m. through                  and Highly Reactive Volatile Organic                  appointment with Ms. Adina Wiley or
                                             7:30 p.m. on June 26, 2017.                             Compound Emissions Cap and Trade                      Mr. Bill Deese at 214–665–7253.


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00007   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                             21920               Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations

                                             SUPPLEMENTARY INFORMATION:                              specific sections impacted by this direct             MECT program on November 14, 2001
                                             Throughout this document ‘‘we,’’ ‘‘us,’’                final rulemaking.                                     (66 FR 57252). The EPA has acted on
                                             and ‘‘our’’ means the EPA.                                                                                    several updates to the MECT program
                                                                                                     B. Overview of the Texas Emissions
                                             I. Background                                           Banking and Trading Programs                          since our initial program approval. See
                                                                                                                                                           prior EPA actions on September 6, 2006
                                             A. CAA and SIPs                                         1. The Emission Credit (EC) Program                   (71 FR 52698); July 16, 2009 (74 FR
                                                Section 110 of the CAA requires states                  The EC Program enacted at 30 Texas                 34503); January 2, 2014 (79 FR 57).
                                             to develop and submit to the EPA a SIP                  Administrative Code (TAC) Chapter                       TCEQ adopted additional revisions to
                                             to ensure that state air quality meets the              101, Subchapter H, Division 1 allows                  the MECT on June 5, 2015, and
                                             National Ambient Air Quality Standards                  owners or operators of a facility or                  submitted these revisions to the EPA as
                                             (NAAQS). These ambient standards                        mobile source to generate emission                    a SIP revision on August 14, 2015. The
                                             currently address six criteria pollutants:              credits by reducing emissions of criteria             revisions make general updates to the
                                             Carbon monoxide, nitrogen dioxide,                      pollutants or their precursors, with the              MECT and clarify the use of allowances
                                             ozone, lead, particulate matter, and                    exception of lead, below any applicable               for Nonattainment New Source Review
                                             sulfur dioxide. Each federally-approved                 regulations or requirements. Emission
                                                                                                                                                           (NNSR) offsets. This rulemaking
                                             SIP protects air quality primarily by                   credits are generated and banked in
                                                                                                                                                           addresses all revisions to the MECT
                                             addressing air pollution at its point of                terms of rate (tons per year). Emission
                                                                                                     credits, or ECs, encompass reductions                 submitted on August 14, 2015.
                                             origin through air pollution regulations
                                             and control strategies. The EPA                         generated and banked from stationary                  3. The Discrete Emission Credit (DEC)
                                             approved SIP regulations and control                    sources as emission reduction credits                 Program
                                             strategies are federally enforceable.                   (ERCs) or generated and banked from
                                                The Texas SIP includes several                       mobile sources as mobile emission                        The DEC Program enacted at 30 TAC
                                             discretionary emissions trading                         reduction credits (MERCs). The ECs                    Chapter 101, Subchapter H, Division 4
                                             programs developed consistent with the                  from the bank have traditionally been                 allows an owner or operator of a facility
                                             EPA’s Economic Incentive Program                        used as offsets for the permitting of                 or mobile source to generate discrete
                                             Guidance, that are designed to promote                  major new or modified facilities in                   emission credits by reducing emissions
                                             flexibility and innovation in complying                 nonattainment areas. ECs have also been               of criteria pollutants or their precursors,
                                             with State and Federal air emission                     banked and traded for alternative                     with the exception of lead, below any
                                             requirements established in the SIP and                 compliance with Reasonably Available                  applicable regulation or requirement.
                                             the SIP-approved air permitting                         Control Technology (RACT)                             Discrete emission credits (DECs) are
                                             programs.1 This direct final action will                requirements. The EPA initially                       quantified, banked and traded in terms
                                             address the revisions to the Texas                      approved the EC program on September                  of mass (tons), not a rate as is the case
                                             Emission Credit (EC), Mass Emissions                    6, 2006 (71 FR 52698) with updates                    with ECs. DECs may be generated from
                                             Cap and Trade (MECT), Discrete                          approved on May 18, 2010 (75 FR                       stationary sources and banked as
                                             Emission Credit (DEC), and Highly                       27647).                                               discrete emission reduction credits
                                             Reactive Volatile Organic Compound                         On June 5, 2015, the TCEQ adopted
                                                                                                                                                           (DERCs) or may be generated from
                                             Emissions Cap and Trade (HECT)                          revisions to the EC Program, including
                                                                                                                                                           mobile sources and banked as mobile
                                             programs that were submitted to the                     renaming the program to the Emission
                                                                                                     Credit Program and revising provisions                discrete emission reduction credits
                                             EPA on July 15, 2002; December 22,                                                                            (MDERCs). Traditionally DECs have
                                             2008; April 6, 2010; May 14, 2013; and                  for mobile and area source credit
                                                                                                     generation. The June 5, 2015, revisions               been used for Reasonably Available
                                             August 14, 2015, where the EPA has not                                                                        Control Technology (RACT) compliance
                                             yet taken an action on such revisions.                  to the EC Program were submitted to the
                                                                                                     EPA as a SIP revision on August 14,                   for (Volatile Organic Compounds) VOCs
                                             This direct final action also addresses                                                                       and NOX; DECs can also be used to
                                             another method for compliance                           2015.
                                                                                                                                                           offset new major sources or major
                                             flexibility for stationary sources using                2. The Mass Emissions Cap and Trade                   modifications to existing sources in
                                             the Texas Emission Reduction Plan                       (MECT) Program                                        nonattainment areas. The EPA initially
                                             (TERP) as submitted to the EPA on July
                                                                                                       The MECT Program enacted at 30                      approved the DEC Program on
                                             15, 2002; May 30, 2007; and July 10,
                                                                                                     TAC Chapter 101, Subchapter H,                        September 6, 2006, with updates
                                             2015. Where the TCEQ also adopted and
                                                                                                     Division 3 is mandatory under the Texas               approved on May 18, 2010 (75 FR
                                             submitted revisions to other parts of the
                                                                                                     SIP for stationary facilities that emit               27644).
                                             Texas SIP, those revisions have been
                                                                                                     oxides of nitrogen (NOX) in the
                                             addressed in separate rulemakings.                                                                               TCEQ has adopted and submitted
                                                                                                     Houston/Galveston/Brazoria (HGB)
                                             Please see the Technical Support                                                                              revisions to the DEC Program on
                                                                                                     ozone nonattainment area which are
                                             Documents accompanying this                                                                                   December 22, 2008 and May 14, 2013 to
                                                                                                     subject to emission specifications in the
                                             rulemaking for an identification of the                                                                       address the use of DERCs in the Dallas-
                                                                                                     TCEQ NOX rules at 30 TAC Sections
                                                                                                     117.310, 117.1210, and 117.2010; and                  Fort Worth (DFW) ozone nonattainment
                                               1 ‘‘Improving Air Quality with Economic
                                                                                                     which are located as a site where they                area. Additional revisions to the DEC
                                             Incentive Programs’’ (EIP Guidance) (EPA–452/R–
                                             01–001, January 2001) is the EPA guidance               collectively have an uncontrolled design              program adopted on June 5, 2015, and
                                             document for reviewing and approving                    capacity to emit 10 tons per year or                  submitted August 14, 2015, rename the
                                             discretionary EIP submittals. The EIP Guidance          more of NOX. The program sets a cap on                program to the Discrete Emission Credit
pmangrum on DSK3GDR082PROD with RULES




                                             applies to the establishment of a discretionary EIP                                                           Program, further revise the provisions
                                             for attaining or maintaining the national ambient air
                                                                                                     NOX emissions beginning January 1,
                                             quality standards (NAAQS) for criteria pollutants.      2002, with a final reduction to the cap               specific to DERC use in DFW, and
                                             The EIP Guidance supersedes and takes precedence        occurring in 2007. Facilities are                     address the generation of area and
                                             over the discretionary EIP guidance provided in         required to meet NOX allowances on an                 mobile source credits. The EPA is
                                             prior documents such as the 1994 EIP (April 7,
                                             1994, 59 FR 16690, 40 CFR part 51, subpart U) and
                                                                                                     annual basis. Facilities may purchase,                addressing all pending revisions to the
                                             the guidance in the emission trading policy             bank, or sell their allowances. The EPA               DEC Program in this action.
                                             statement (ETPS) (December 4, 1986, 51 FR 43813).       published a final rule approving the


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00008   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                                                 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations                                          21921

                                             4. The Highly Reactive Volatile Organic                 emission reductions achieved through                  prior to operation. The TCEQ will set-
                                             Compound (HRVOC) Emissions Cap and                      the TERP for a set period of time. The                aside the portion of allowances for the
                                             Trade (HECT) Program                                    compliance flexibility provisions for                 1:1 offset obligation; the owner/operator
                                                The HECT Program enacted at 30 TAC                   sources subject to the MECT were                      is required to set aside additional
                                             Chapter 101, Subchapter H, Division 6                   initially adopted on March 13, 2002 and               allowances if there is a short fall in the
                                             is mandatory for covered facilities                     submitted as SIP revisions on July 15,                offset obligation due to allowance
                                             including vent gas streams, flares, and                 2002 as new 30 TAC Section 101.357;                   devaluation. The TCEQ will also
                                                                                                     no changes have been made since this                  permanently retire the allowances used
                                             cooling tower heat exchange systems
                                                                                                     initial adoption and submittal. The                   for the environmental benefit portion of
                                             that emit HRVOCs, as defined in 30
                                                                                                     compliance flexibility provisions for                 the offset obligation (the greater than 1:1
                                             TAC Section 115.10, and that are
                                                                                                     sources subject to the NOX control                    portion of the offset obligation). The
                                             located at a site subject to Chapter 115,
                                                                                                     requirements in Chapter 117 were                      TCEQ also provides the mechanism
                                             Subchapter H. The EPA published final
                                                                                                     initially adopted on March 13, 2002 and               under the MECT or HECT Programs
                                             approval of the HECT program on
                                                                                                     submitted as a SIP revision on July 15,               where the owner or operator can request
                                             September 6, 2006 (71 FR 52659).
                                                                                                     2002 as 30 TAC Section117.571. TCEQ                   the release of allowances if an
                                                Since our initial approval of the HECT
                                                                                                     has revised this section twice since its              alternative means of compliance with
                                             program, the TCEQ adopted revisions
                                                                                                     initial adoption. Revisions adopted May               the offset obligation is approved. The
                                             on March 10, 2010, in conjunction with
                                                                                                     23, 2007, and submitted as a SIP                      TCEQ will not retroactively release
                                             the development of the HGB 1997 eight-
                                                                                                     revision on May 30, 2007, recodified                  allowances and the portion of
                                             hour ozone attainment demonstration;                                                                          allowances retired for the
                                                                                                     and revised the provisions as 30 TAC
                                             these HECT amendments were                              Section 117.9810. The TCEQ adopted                    environmental benefit contribution will
                                             submitted as revisions to the Texas SIP                 further revisions to 30 TAC Section                   not be released.
                                             on April 6, 2010. On January 2, 2014,                   117.9810 on June 3, 2015, and                            The requirements for NNSR offsets are
                                             the EPA approved the majority of these                  submitted these provisions as a SIP                   established under section 173(c) of the
                                             HECT amendments in concert with our                     revision on July 10, 2015; this section               CAA. Section 173(c)(1) provides that an
                                             final approval of the HGB attainment                    now only applies to DFW area sources                  owner or operator of a stationary source
                                             demonstration for the 1997 eight-hour                   that seek to use emission reductions                  may comply with any offset requirement
                                             ozone standard (79 FR 57). Note that we                 generated from TERP to meet NOX                       by obtaining emission reductions of the
                                             did not take action on the submitted                    emission control requirements.                        air pollutant from the same source or
                                             revision to 30 TAC Section 101.396(b) at                                                                      other sources in the same nonattainment
                                             the request of the state.                               II. The EPA’s Evaluation                              area. Emission reductions used for
                                                The TCEQ adopted revisions to the                       The TSDs for this action include a                 offsets must be in effect and enforceable
                                             HECT program on June 5, 2015, and                       detailed analysis of the revisions                    by the time the new or modified source
                                             submitted these revisions to the SIP on                 submitted for EPA’s consideration. In                 commences operation and ensure that
                                             August 14, 2015. The submitted                          many instances the revisions are minor                the total tonnage of increased emissions
                                             revisions clarify the use of HECT                       or non-substantive in nature and do not               of the air pollutant shall be offset by the
                                             allowances as NNSR offsets, update the                  change the intent of the original SIP-                equal or greater reduction in actual
                                             equations for allowance allocations,                    approved program. Following is a                      emissions. Sections 173(c)(1)(A) and (B)
                                             update provisions for changing site                     summary of our analysis for those                     provide exceptions to the location of the
                                             ownership, and revise provisions to                     revisions that we view as substantive                 offsetting emission reductions by
                                             clarify data substation for reporting.                  revisions to our initial SIP-approvals.               providing that reductions may be
                                                This rulemaking addresses the                                                                              achieved in another nonattainment area
                                             remaining revision to 30 TAC Section                    A. Revisions to the MECT and HECT for
                                                                                                     Using Allowances as NNSR Offsets                      if the area is of an equal or higher
                                             101.396(b) from the April 6, 2010                                                                             nonattainment classification and
                                             submittal and all revisions to the HECT                    In the August 14, 2015 submittal, the              emissions from the other area contribute
                                             submitted on August 14, 2015.                           TCEQ expanded the MECT program at                     to a violation of the NAAQS in the
                                                                                                     30 TAC Section 101.352 and the HECT                   nonattainment area where the source
                                             C. Compliance Flexibility With the                      Program at 30 TAC Section 101.393,
                                             Texas Emission Reduction Plan (TERP)                                                                          will be located. Section 173(c)(2)
                                                                                                     such that MECT allowances can be used                 provides that emission reductions
                                                The TERP, implemented with                           for the entirety of the NNSR NOX offset               required elsewhere under the Act will
                                             provisions in 30 TAC Chapter 114,                       obligation and HECT allowances can be                 not be creditable as emission reductions
                                             Subchapter K, is a SIP-approved                         used for the entirety of the NNSR VOC                 for purposes of NNSR offsets. The EPA
                                             program that provides financial                         offset obligation, rather than just the 1:1           regulations pertaining to NNSR offset
                                             incentives for reducing emissions from                  portion of the offset, as long as the use             requirements are found at 40 CFR
                                             mobile sources. Examples of TERP grant                  is authorized in a NNSR permit issued                 51.165(a)(3).
                                             projects include financial subsidies to                 under the SIP-approved NNSR program                      The EPA has provided specific
                                             upgrade/retrofit diesel exhaust systems                 at 30 TAC Chapter 116, Subchapter B.                  guidance for the interactions between
                                             in school buses and replacing heavy-                    The TCEQ adopted and submitted                        multi-source emission cap and trade
                                             duty and light-duty on-road diesel                      additional clarifications to both the                 programs and the NNSR permitting
                                             vehicles with alternative fuel and                      MECT and HECT Program regulations                     program in our EIP Guidance under
                                             hybrid vehicles. TCEQ adopted new                       that clarify the applicable offset                    sections 6.3(d) and Appendix 16.14.
                                             revisions to promote compliance                         obligation will be met by a permanent                 Together, these sections provide that
pmangrum on DSK3GDR082PROD with RULES




                                             flexibility for stationary sources subject              stream of allowances and not through                  reductions from an EIP can be used for
                                             to NOX control requirements either                      the use of a banked, or vintage                       NNSR purposes provided that the
                                             under the MECT or under the                             allowance or an allowance allocated                   emission reductions independently
                                             requirements of 30 TAC Chapter 117 by                   based on allowable emissions. The                     meet the relevant NNSR requirements in
                                             requiring partial compliance with the                   owner or operator of the facility must                the CAA and in EPA’s regulations and
                                             stationary source obligation while                      have the necessary allowances in the                  guidance. Further, major sources and
                                             simultaneously funding mobile                           respective compliance account 30 days                 modifications may not be exempted


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00009   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                             21922               Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations

                                             from NSR requirements and the                           the SIP-approved program requirements.                173(c)(1) that require the offsets to be in
                                             reductions under the EIP may not be                     Ultimately, by using a permanent stream               effect and enforceable by the time the
                                             used for netting unless they occur                      of allowances to satisfy the entirety of              source commences operation.
                                             contemporaneously with use and occur                    the NNSR offset obligation, the overall
                                                                                                                                                           C. Use of DERCs in the DFW Ozone
                                             at the same source as the emission                      MECT or HECT cap will be reduced.
                                                                                                                                                           Nonattainment Area
                                             increase. The EIP Guidance reiterates                   Therefore, the air shed will be protected
                                             that reductions used for NNSR offsets                   while still providing for future growth                  On December 22, 2008, the TCEQ
                                             must be federally enforceable and                       consistent with the goals of the CAA                  submitted revisions to the Texas SIP
                                             satisfy the requirements of CAA section                 and the NNSR program.                                 Narrative and the state’s Emissions
                                             173(c).                                                                                                       Banking and Trading Rules at 30 TAC
                                                The revisions to the MECT and HECT                   B. Revisions to How DERCs Are Used as
                                                                                                     NNSR Offsets                                          Sections 101.376 and 101.379 to address
                                             offset provisions continue to satisfy the                                                                     the use of DERCs in the DFW
                                             offset requirements under CAA Section                      The August 14, 2015 submitted                      nonattainment area with respect to the
                                             173(c). First as to location, an owner/                 revisions to the DEC Program included                 1997 eight-hour ozone NAAQS. The
                                             operator with a NOX offset obligation in                revisions on how DERCs can be used as                 submitted regulations created an
                                             the HGB area could use the MECT                         NNSR offsets and how this usage is                    enforceable mechanism to restrict the
                                             allowances to satisfy the offset                        accounted for in the applicable NNSR                  use of DERCs in the DFW eight-hour
                                             obligation since the allowances are                     permit. The current SIP-approved                      ozone nonattainment area through the
                                             provided in the HGB ozone                               language requires that if DECs are to be              establishment of the DFW DERC limit.
                                             nonattainment area. Similarly, an                       used for the offset obligation in an                  The DFW DERC limit was calculated as
                                             owner/operator with a VOC offset                        NNSR permit, the applicable permit will               a ton per day limit based on the TCEQ’s
                                             obligation in the HGB area could use the                include an enforceable requirement that               photochemical modeling demonstration,
                                             HECT allowances to satisfy the offset                   the facility obtain at least one additional           emission reductions from fleet turnover
                                             obligation since the allowances are                     year of DECs for offsets before                       that were not used to satisfy attainment
                                             provided in the HGB ozone                               continuing operation; this creates a                  SIP contingency measures and DERCs
                                             nonattainment area. The use of                          rolling requirement for the owner/                    generated and not used after the
                                             allowances for the entirety of the offset               operator of the stationary source to                  inception of the DFW DERC limit.
                                             obligation is not restricted by the CAA,                obtain and request approval for the use
                                                                                                                                                              The TCEQ submitted the DFW
                                             nor is it restricted under the EPA’s EIP                of DECs each year under an NNSR
                                                                                                     permit. In the August 14, 2015                        attainment demonstration for the 2008
                                             at Appendix 16.14. The MECT and
                                                                                                     submittal, the TCEQ revised the                       ozone NAAQS on July 10, 2015, with
                                             HECT revisions specify that the
                                                                                                     regulations so that the prior language                updates submitted on August 5, 2016.
                                             allowances must be obtained 30 days
                                                                                                     applies only to the use of MDERCs as                  As part of these revisions, the TCEQ
                                             prior to commencement of operation,
                                                                                                     NNSR offsets. For DERCs, the user must                reevaluated the DERC usage limitations
                                             ensuring that the requirements under
                                                                                                     complete an application form to use                   for the DFW area. The TCEQ determined
                                             CAA section 173(c)(1) regarding timing
                                                                                                     DERCs at least 90 days before operation               that the previously adopted and
                                             are satisfied. A source from outside the
                                                                                                     and at least 90 days before continuing                submitted DFW DERC limit calculation
                                             HGB ozone nonattainment area could
                                                                                                     operation for any period that was not                 was unsustainable. The July 10, 2015
                                             theoretically use MECT allowances for
                                                                                                     included in the initial application. This             submittal included sensitivity analyses
                                             NOX offset compliance or HECT
                                             allowances for VOC offset compliance,                   change has been made to reflect that                  that modeled a fixed 17.0 tpd limit and
                                             provided that the HGB ozone                             users of DERCs for offsets are generally              enabled the DFW area to reach
                                             nonattainment area is of equal or greater               obtaining sufficient DERCs to cover                   attainment. The TCEQ submitted the
                                             nonattainment designation and that the                  several years of operation, if not the                revised DFW DERC limit and associated
                                             source could demonstrate emissions                      entirety of the expected lifetime of the              revisions to the DERC regulations in the
                                             from HGB contribute to a NAAQS                          source, before commencing                             August 14, 2015 submittal.
                                             violation in the other nonattainment                    construction. In those situations, the                   In addition to the limit on DERC
                                             area of use. The EPA believes that the                  prior SIP-approved language created an                usage in DFW, the TCEQ adopted and
                                             possibility of the use of MECT or HECT                  undue burden on the owner or operator                 submitted an exemption from this limit
                                             allowances for an offset obligation                     to annually submit paperwork when the                 in the December 22, 2008 with updates
                                             outside of the HGB area will be                         DERCs had already been obtained and                   submitted on May 14, 2013. This
                                             extremely limited because any source                    approved for use. Under the revised                   exemption is specific to DERCs used in
                                             trying to use MECT or HECT allowances                   regulations, the enforceable                          the DFW area in response to an
                                             outside of the HGB would be obligated                   commitment to obtain sufficient DERCs                 emergency situation declared by the
                                             to make the above-referenced                            is the NNSR permit requirement that                   Electric Reliability Council of Texas
                                             demonstrations under CAA section                        emissions must be offset prior to the                 (ERCOT) where the safety or reliability
                                             173(c)(1)(A) and (B) to ensure that the                 commencement of operation. If the                     of the Texas electric grid is
                                             CAA is satisfied. Finally, the MECT and                 owner or operator is using DERCs for                  compromised or threatened. The EPA
                                             HECT caps and the pending revisions to                  the offset obligation they still must                 finds this exemption approvable
                                             the MECT and HECT programs are not                      obtain the DERCs in advance of                        because the TCEQ Executive Director
                                             required by the CAA; therefore, MECT                    operation and have those DERCs                        can only approve these requests if all
                                             or HECT allowances would be                             approved for use by the TCEQ Executive                other requirements for DERC usage are
                                             creditable for offset purposes under                    Director. While the submitted revisions               satisfied. The DERC usage requirements
pmangrum on DSK3GDR082PROD with RULES




                                             CAA section 173(c)(2).                                  change the method in which users of                   are protective of the NAAQS by
                                                The revisions to the MECT and HECT                   DERCs as NNSR offsets request approval                requiring the TCEQ Executive Director
                                             also satisfy the NNSR offset criteria                   of such use from the TCEQ, the                        to consider the locations requested for
                                             established in EPA’s EIP Guidance,                      underlying premise of using DERCs as                  DERC usage and determine whether the
                                             Appendix 16.14. The use of MECT or                      NNSR offsets is unchanged. The change                 requested use would cause or contribute
                                             HECT allowances for netting out of                      in methodology is consistent with the                 to a violation of the NAAQS through
                                             NNSR requirements is prohibited under                   offset requirements of the CAA at                     ozone spike formation.


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00010   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                                                 Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations                                        21923

                                               The EPA is taking action now to                       obligation by paying into the TERP fund               a combination of stationary and mobile
                                             evaluate and approve the revisions to                   at a cost of $75,000 per ton of NOX                   sources. Therefore, these compliance
                                             the DEC regulations themselves that                     emissions; not to exceed 25 tons per                  flexibility provisions will not interfere
                                             adopt and implement the DERC usage                      year or 0.5 tons per day on a site-wide               with any applicable requirement
                                             limit for the DFW ozone nonattainment                   basis. The TCEQ uses this money to                    concerning attainment and reasonable
                                             area as submitted on December 22,                       fund TERP projects to benefit the                     further progress, or any other applicable
                                             2008, and revised in the May 14, 2013                   community where the site using the                    requirement of this CAA.
                                             and August 14, 2015 submittals. The                     emissions reductions is located. Because
                                             EPA believes it is appropriate to                       the cost per ton of NOX ($75,000 per                  III. Final Action
                                             approve the regulations to restrict DERC                ton) is much greater than the cost                       We are approving through a direct
                                             usage in the DFW nonattainment area.                    effectiveness of TERP programs (an                    final action the submitted revisions to
                                             We support the use of a fixed daily limit               average of $6,165 per ton from the                    the Texas Emissions Banking and
                                             as provided in the sensitivity analyses                 beginning of TERP in 2002 through                     Trading Programs from July 15, 2002;
                                             of the DFW Attainment Demonstration                     August 31, 2015) 3 it is expected that                December 22, 2008; April 6, 2010; May
                                             for the 2008 ozone NAAQS because of                     this provision will allow for much                    14, 2013; and August 14, 2015. The EPA
                                             the clarity provided to the sources using               greater emission reductions and much                  has determined that these revisions are
                                             DERCs and the TCEQ in implementing                      greater environmental benefit than                    approvable because the submitted rules
                                             the usage restrictions. We find that the                would otherwise be obtained.                          were adopted and submitted in
                                             adopted revisions for the DFW DERC                                                                            accordance with the CAA and are
                                                                                                     E. Analysis Under Section 110(l) of the
                                             limit are sufficient to restrict DERC                                                                         necessary to update functionality of the
                                                                                                     CAA
                                             usage consistent with the levels                                                                              SIP-approved trading programs and are
                                             modeled by the TCEQ in the DFW                             Our analysis indicates that the July               consistent with the CAA and the EPA’s
                                             Attainment Demonstration for the 2008                   15, 2002; December 22, 2008; April 6,                 policy and guidance on emissions
                                             ozone NAAQS. While this direct final                    2010; May 14, 2013, and August 14,                    trading. Therefore, under section 110 of
                                             action approves the regulations for the                 2015 submitted revisions to the Texas                 the Act, the EPA is approving the
                                             DFW DERC limit, we are not evaluating                   EC, MECT, DEC, and HECT Programs                      following revisions to the Texas SIP:
                                             the DFW Attainment Demonstration at                     were adopted and submitted as                            • Revisions to the 30 TAC Chapter
                                             this time.                                              revisions to the Texas SIP after                      101, Subchapter H, Division 1 Title
                                                                                                     reasonable notice and public hearing.                 submitted August 14, 2015;
                                             D. Analysis of Compliance Flexibility                   The Texas EC and DEC programs are SIP
                                             With TERP                                                                                                        • Revisions to 30 TAC Section
                                                                                                     approved programs that provide for                    101.300 adopted on June 3, 2015 and
                                                Site owners or operators subject to the              compliance flexibility and generation                 submitted August 14, 2015;
                                             MECT in HGB or the Chapter 117 NOX                      and use of emission credits in the SIP-                  • Revisions to 30 TAC Section
                                             requirements for DFW 2 have an                          approved NNSR permitting program.                     101.301 adopted on June 3, 2015 and
                                             obligation to meet certain NOX emission                 The Texas MECT and HECT are                           submitted August 14, 2015;
                                             limits. Site owners or operators unable                 necessary components of the HGB
                                                                                                                                                              • Revisions to 30 TAC Section
                                             to meet these emission limitations and                  nonattainment requirements. The
                                                                                                                                                           101.302 adopted on June 3, 2015 and
                                             desiring to use TERP emission                           submitted revisions to the EC, MECT,
                                                                                                                                                           submitted August 14, 2015;
                                             reductions for compliance relief, can                   DEC and HECT clarify and update the
                                             petition the TCEQ Executive Director for                                                                         • Revisions to 30 TAC Section
                                                                                                     existing programs—these submitted
                                             a determination of technical                                                                                  101.303 adopted on June 3, 2015 and
                                                                                                     revisions do not change the
                                             infeasibility. The regulations state that                                                                     submitted August 14, 2015;
                                                                                                     fundamental premise or structure of the
                                             an owner or operator should                                                                                      • Revisions to 30 TAC Section
                                                                                                     programs. Therefore, we find that the
                                             demonstrate that they cannot comply                                                                           101.306 adopted on June 3, 2015 and
                                                                                                     revisions to the EC, MECT, DEC and
                                             with the entirety of the NOX obligation                                                                       submitted August 14, 2015;
                                                                                                     HECT will not interfere with attainment,
                                             at the current time, but rather can                                                                              • Revisions to 30 TAC Section
                                                                                                     reasonable further progress or any other
                                             comply with 80% of their obligation.                                                                          101.309 adopted on June 3, 2015 and
                                                                                                     applicable requirements of the Act.
                                             The owner or operator must further                         The revisions to the MECT adopted                  submitted August 14, 2015;
                                             demonstrate that the source will be in                  on March 13, 2002, and submitted on                      • Revisions to 30 TAC Section
                                             full compliance with the NOX obligation                 July 15, 2002, establish a new provision              101.350 adopted on June 3, 2015 and
                                             within 5 years of the compliance                        under the MECT allowing for                           submitted August 14, 2015;
                                             deadline. In determining whether to                     compliance flexibility with MECT                         • Revisions to 30 TAC Section
                                             grant the petition for technical                        requirements by using TERP projects.                  101.351 adopted on June 3, 2015 and
                                             infeasibility, the TCEQ Executive                       Similarly, the compliance flexibility                 submitted August 14, 2015;
                                             Director will consider at a minimum:                    provisions for Chapter 117 NOX                           • Revisions to 30 TAC Section
                                             Current technology, adaptability of                     obligations in DFW initially submitted                101.352 adopted on June 3, 2015 and
                                             technology to a specific source, age and                on July 15, 2002 and revised on May 30,               submitted August 14, 2015;
                                             projected useful life of the source and                 2007, and July 14, 2015, establish the                   • Revisions to 30 TAC Section
                                             cost benefits at the time of application.               ability for a source to comply with NOX               101.353 adopted on June 3, 2015 and
                                             If the TCEQ Executive Director agrees                   obligations by funding TERP projects.                 submitted August 14, 2015;
                                             with the petition for technical                         The EPA believes that the compliance                     • Revisions to 30 TAC Section
                                             infeasibility, the site owner or operator               flexibility afforded under 30 TAC                     101.354 adopted on June 3, 2015 and
pmangrum on DSK3GDR082PROD with RULES




                                             can defer 20% of their NOX compliance                   Sections 101.357 and 117.9810 is                      submitted August 14, 2015;
                                                                                                     approvable and, if used, would result in                 • Revisions to 30 TAC Section
                                                2 The compliance flexibility provisions under 30
                                                                                                     an equal or greater reduction of NOX                  101.356 adopted on June 3, 2015 and
                                             TAC Section 117.9810 can be used by DFW area                                                                  submitted August 14, 2015;
                                             sources subject to the requirements at 30 TAC           emissions in the respective airshed from
                                             Sections 117.405 (reasonably available control
                                                                                                                                                              • New 30 TAC Section 101.357
                                             technology), 117.410 (major sources), or 117.1310         3 March 22, 2016 email from Steve Dayton, TCEQ,     adopted on March 13, 2002 and
                                             (electric generating sources).                          to Clovis Steib, EPA Region 6.                        submitted July 15, 2002;


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00011   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                             21924               Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations

                                               • Repeal of 30 TAC Section 101.358                       • Revisions to 30 TAC Section                      we receive relevant adverse comments,
                                             adopted on June 3, 2015 and submitted                   101.400 adopted on June 3, 2015 and                   we will publish a timely withdrawal in
                                             August 14, 2015;                                        submitted August 14, 2015.                            the Federal Register informing the
                                               • Revisions to 30 TAC Section                            The EPA has also determined that the               public that the rule will not take effect.
                                             101.359 adopted on June 3, 2015 and                     revisions to the NOX requirements                     We will address all public comments in
                                             submitted August 14, 2015;                              under 30 TAC Chapter 117 submitted on                 a subsequent final rule based on the
                                               • Revisions to 30 TAC Section                         July 15, 2002; May 30, 2007; and July                 proposed rule. We will not institute a
                                             101.360 adopted on June 3, 2015 and                     10, 2015 allowing for compliance                      second comment period on this action.
                                             submitted August 14, 2015.                              flexibility using the TERP are                        Any parties interested in commenting
                                               • Revisions to the 30 TAC Chapter                     approvable and were adopted and                       must do so now. Please note that if we
                                             101, Subchapter H, Division 4 Title                     submitted in accordance with the CAA.                 receive relevant adverse comment on an
                                             submitted August 14, 2015;                              Therefore, under section 110 of the Act,              amendment, paragraph, or section of
                                               • Revisions to 30 TAC Section                         the EPA is approving the following                    this rule and if that provision may be
                                             101.370 adopted on June 3, 2015 and                     revisions to the Texas SIP:                           severed from the remainder of the rule,
                                             submitted August 14, 2015;                                 • Revisions to 30 TAC Section                      we may adopt as final those provisions
                                               • Revisions to 30 TAC Section                         117.571 adopted on March 13, 2002,                    of the rule that are not the subject of an
                                             101.371 adopted on June 3, 2015 and                     and submitted July 15, 2002;                          adverse comment.
                                             submitted August 14, 2015;                                 • The recodification of 30 TAC
                                               • Revisions to 30 TAC Section                         Section 117.571 as new 30 TAC Section                 IV. Incorporation by Reference
                                             101.372 adopted on June 3, 2015 and                     117.9810 adopted on May 23, 2007, and                   In this rule, we are finalizing
                                             submitted August 14, 2015;                              submitted on May 30, 2007; and                        regulatory text that includes
                                               • Revisions to 30 TAC Section                            • Revisions to 30 TAC Section                      incorporation by reference. In
                                             101.373 adopted on June 3, 2015 and                     117.9810 adopted on June 3, 2015, and                 accordance with the requirements of 1
                                             submitted August 14, 2015;                              submitted on July 10, 2015.                           CFR 51.5, we are finalizing the
                                               • Revisions to 30 TAC Section                            Additionally, we are making a non-                 incorporation by reference of the
                                             101.376 adopted on December 10, 2008                    substantive revision and a ministerial                revisions to the Texas regulations as
                                             and submitted December 22, 2008;                        correction to the table in 40 CFR                     described in the Final Action section
                                               • Revisions to 30 TAC Section                         52.2270(c). The EPA is making a non-                  above. We have made, and will continue
                                             101.376 adopted on June 3, 2015 and                     substantive revision at 40 CFR                        to make, these documents generally
                                             submitted August 14, 2015;                              52.2270(c) to remove a duplicative entry              available electronically through
                                               • Revisions to 30 TAC Section                         for 30 TAC Section 117.9800—Use of                    www.regulations.gov and/or in hard
                                             101.378 adopted on June 3, 2015 and                     Emission Credits for Compliance. The                  copy at the EPA Region 6 office.
                                             submitted August 14, 2015;                              EPA initially approved this section as
                                               • Revisions to 30 TAC Section                         submitted by the State on April 6, 2012,              V. Statutory and Executive Order
                                             101.379 adopted on December 10, 2008                    on July 31, 2014 (79 FR 44300). We then               Reviews
                                             and submitted December 22, 2008;                        approved revisions to this section                       Under the CAA, the Administrator is
                                               • Revisions to 30 TAC Section                         submitted by the State on July 3, 2015,               required to approve a SIP submission
                                             101.379 adopted on April 10, 2013 and                   on April 13, 2016 (81 FR 21750), but did              that complies with the provisions of the
                                             submitted May 14, 2013;                                 not remove the initial entry of our                   Act and applicable Federal regulations.
                                               • Revisions to 30 TAC Section                         approval from the table. Additionally,                42 U.S.C. 7410(k); 40 CFR 52.02(a).
                                             101.379 adopted on June 3, 2015 and                     we are making a ministerial correction                Thus, in reviewing SIP submissions, the
                                             submitted August 14, 2015;                              to reflect that 30 TAC Section                        EPA’s role is to approve state choices,
                                               • Revisions to the 30 TAC Chapter                     117.410(c), (pertaining to carbon                     provided that they meet the criteria of
                                             101, Subchapter H, Division 6 Title                     monoxide and ammonia emissions), is                   the CAA. Accordingly, this action
                                             submitted August 14, 2015;                              not in the EPA-approved Texas SIP. Our                merely approves state law as meeting
                                               • Revisions to 30 TAC Section                         April 13, 2016 final action on the Texas              Federal requirements and does not
                                             101.390 adopted on June 3, 2015 and                     SIP did not properly update the CFR                   impose additional requirements beyond
                                             submitted August 14, 2015;                              table to show a recodification of                     those imposed by state law. For that
                                               • Revisions to 30 TAC Section                         subsections in 30 TAC Section 117.410                 reason, this action:
                                             101.391 adopted on June 3, 2015 and                     (81 FR 21750). The EPA is also revising                  • Is not a ‘‘significant regulatory
                                             submitted August 14, 2015;                              the table in 40 CFR 52.2270(e) for                    action’’ subject to review by the Office
                                               • Revisions to 30 TAC Section                         Nonregulatory and Quasi-Regulatory                    of Management and Budget under
                                             101.392 adopted on June 3, 2015 and                     Measures to reflect our final action on               Executive Orders 12866 (58 FR 51735,
                                             submitted August 14, 2015;                              the DERC SIP Narrative adopted on                     October 4, 1993) and 13563 (76 FR 3821,
                                               • Revisions to 30 TAC Section                         December 10, 2008 and submitted on                    January 21, 2011);
                                             101.393 adopted on June 3, 2015 and                     December 22, 2008 by the State.                          • Does not impose an information
                                             submitted August 14, 2015;                                 The EPA is publishing this rule                    collection burden under the provisions
                                               • Revisions to 30 TAC Section                         without prior proposal because we view                of the Paperwork Reduction Act (44
                                             101.394 adopted on June 3, 2015 and                     this as a non-controversial amendment                 U.S.C. 3501 et seq.);
                                             submitted August 14, 2015;                              and anticipate no adverse comments.                      • Is certified as not having a
                                               • Revisions to 30 TAC Section                         However, in the proposed rules section                significant economic impact on a
                                             101.396(b) adopted on March 10, 2010                    of this Federal Register publication, we              substantial number of small entities
pmangrum on DSK3GDR082PROD with RULES




                                             and submitted on April 6, 2010;                         are publishing a separate document that               under the Regulatory Flexibility Act (5
                                               • Revisions to 30 TAC Section                         will serve as the proposal to approve the             U.S.C. 601 et seq.);
                                             101.396 adopted on June 3, 2015 and                     SIP revision if relevant adverse                         • Does not contain any unfunded
                                             submitted August 14, 2015;                              comments are received. This rule will                 mandate or significantly or uniquely
                                               • Revisions to 30 TAC Section                         be effective on July 10, 2017 without                 affect small governments, as described
                                             101.399 adopted on June 3, 2015 and                     further notice unless we receive relevant             in the Unfunded Mandates Reform Act
                                             submitted August 14, 2015; and                          adverse comment by June 12, 2017. If                  of 1995 (Pub. L. 104–4);


                                        VerDate Sep<11>2014   14:36 May 10, 2017   Jkt 241001   PO 00000   Frm 00012   Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                                                   Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations                                                             21925

                                                • Does not have Federalism                                  other required information to the U.S.                     PART 52—APPROVAL AND
                                             implications as specified in Executive                         Senate, the U.S. House of                                  PROMULGATION OF
                                             Order 13132 (64 FR 43255, August 10,                           Representatives, and the Comptroller                       IMPLEMENTATION PLANS
                                             1999);                                                         General of the United States prior to
                                                • Is not an economically significant                        publication of the rule in the Federal                     ■ 1. The authority citation for part 52
                                             regulatory action based on health or                           Register. A major rule cannot take effect                  continues to read as follows:
                                             safety risks subject to Executive Order                        until 60 days after it is published in the
                                             13045 (62 FR 19885, April 23, 1997);                           Federal Register. This action is not a                         Authority: 42 U.S.C. 7401 et seq.
                                                • Is not a significant regulatory action                    ‘‘major rule’’ as defined by 5 U.S.C.
                                             subject to Executive Order 13211 (66 FR                        804(2).                                                    Subpart SS—Texas
                                             28355, May 22, 2001);                                             Under section 307(b)(1) of the CAA,
                                                • Is not subject to requirements of                         petitions for judicial review of this                      ■  2. In § 52.2270:
                                             section 12(d) of the National                                  action must be filed in the United States                  ■  a. In paragraph (c), the table titled
                                             Technology Transfer and Advancement                            Court of Appeals for the appropriate                       ‘‘EPA Approved Regulations in the
                                             Act of 1995 (15 U.S.C. 272 note) because                       circuit by July 10, 2017. Filing a petition                Texas SIP’’ is amended by:
                                             application of those requirements would                        for reconsideration by the Administrator
                                             be inconsistent with the CAA; and                              of this final rule does not affect the                     ■ i. Revising the centered headings for
                                                • Does not provide EPA with the                             finality of this rule for the purposes of                  Divisions 1, 4 and 6 under Chapter 101,
                                             discretionary authority to address, as                         judicial review nor does it extend the                     Subchapter H and the entries for
                                             appropriate, disproportionate human                            time within which a petition for judicial                  Sections 101.300–101.303, 101.306,
                                             health or environmental effects, using                         review may be filed, and shall not                         101.309, 101.350–101.354, 101.356,
                                             practicable and legally permissible                            postpone the effectiveness of such rule                    101.359, 101.360, 101.370–101.373,
                                             methods, under Executive Order 12898                           or action. This action may not be                          101.376, 101.378, 101.379, 101.390–
                                             (59 FR 7629, February 16, 1994).                               challenged later in proceedings to                         101.394, 101.396, 101.399, 101.400, and
                                                In addition, the SIP is not approved                        enforce its requirements. (See section                     117.410;
                                             to apply on any Indian reservation land                        307(b)(2).)
                                             or in any other area where EPA or an                                                                                      ■ ii. Removing the entry for Section
                                             Indian tribe has demonstrated that a                           List of Subjects in 40 CFR Part 52                         101.358 and the second entry for
                                             tribe has jurisdiction. In those areas of                        Environmental protection, Air                            Section 117.9800; and
                                             Indian country, the rule does not have                         pollution control, Carbon monoxide,                        ■ iii. Adding in numerical order entries
                                             tribal implications and will not impose                        Incorporation by reference,                                for Sections 101.357 and 117.9810.
                                             substantial direct costs on tribal                             Intergovernmental relations, Lead,                         ■ b. In paragraph (e), the second table
                                             governments or preempt tribal law as                           Nitrogen oxide, Ozone, Reporting and
                                             specified by Executive Order 13175 (65                                                                                    titled ‘‘EPA Approved Nonregulatory
                                                                                                            recordkeeping requirements, Sulfur
                                             FR 67249, November 9, 2000).                                                                                              Provisions and Quasi-Regulatory
                                                                                                            oxides, Volatile organic compounds.
                                                The Congressional Review Act, 5                                                                                        Measures in the Texas SIP’’ is amended
                                                                                                              Samuel Coleman was designated the                        by adding the entry ‘‘Discrete Emissions
                                             U.S.C. 801 et seq., as added by the Small                      Acting Regional Administrator on April
                                             Business Regulatory Enforcement                                                                                           Reduction Credits (DERC) SIP’’ at the
                                                                                                            27, 2017, through the order of
                                             Fairness Act of 1996, generally provides                                                                                  end.
                                                                                                            succession outlined in Regional Order
                                             that before a rule may take effect, the                        R6–1110.1, a copy of which is included                        The revisions and additions read as
                                             agency promulgating the rule must                              in the docket for this action.                             follows:
                                             submit a rule report, which includes a
                                             copy of the rule, to each House of the                           Dated: April 27, 2017.                                   § 52.2270    Identification of plan.
                                             Congress and to the Comptroller General                        Samuel Coleman,
                                                                                                                                                                       *       *    *        *   *
                                             of the United States. The EPA will                             Acting Regional Administrator, Region 6.
                                                                                                                                                                           (c) * * *
                                             submit a report containing this rule and                           40 CFR part 52 is amended as follows:

                                                                                                   EPA-APPROVED REGULATIONS IN THE TEXAS SIP
                                                                                                                                        State
                                                                                                                                      approval/
                                                       State citation                              Title/subject                                             EPA approval date                    Explanation
                                                                                                                                      submittal
                                                                                                                                        date


                                                        *                         *                            *                          *                       *                      *                     *

                                                                                                               Chapter 101—General Air Quality Rules


                                                        *                         *                            *                          *                       *                      *                     *

                                                                                                         Subchapter H—Emissions Banking and Trading
pmangrum on DSK3GDR082PROD with RULES




                                                                                                                   Division 1—Emission Credit Program

                                             Section 101.300 ......................   Definitions ..............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                        Register citation].
                                             Section 101.301 ......................   Purpose ..................................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                        Register citation].
                                             Section 101.302 ......................   General Provisions ................                 6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                        Register citation].



                                        VerDate Sep<11>2014    14:36 May 10, 2017     Jkt 241001     PO 00000       Frm 00013      Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                             21926                  Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations

                                                                                          EPA-APPROVED REGULATIONS IN THE TEXAS SIP—Continued
                                                                                                                                         State
                                                                                                                                       approval/
                                                        State citation                              Title/subject                                             EPA approval date               Explanation
                                                                                                                                       submittal
                                                                                                                                         date

                                             Section 101.303 ......................    Emission Reduction Credit                           6/3/2015    5/11/2017, [Insert Federal
                                                                                        Generation and Certifi-                                          Register citation].
                                                                                        cation.

                                                      *                           *                  *                                     *                     *                        *            *
                                             Section 101.306 ...................... Emission Credit Use ..............                     6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.309 ......................    Emission Credit Banking and                         6/3/2015    5/11/2017, [Insert Federal
                                                                                        Trading.                                                         Register citation].

                                                      *                           *                        *                               *                     *                        *            *
                                             Section 101.350 ...................... Definitions ..............................             6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.351 ......................    Applicability ............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.352 ......................    General Provisions ................                 6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.353 ......................    Allocation of Allowances ........                   6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.354 ......................    Allowance Deductions ...........                    6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.356 ......................    Allowance Banking and Trad-                         6/3/2015    5/11/2017, [Insert Federal
                                                                                          ing.                                                           Register citation].
                                             Section 101.357 ......................    Use of Emission Reductions                        3/13/2002     5/11/2017, [Insert Federal
                                                                                         Generated from the Texas                                        Register citation].
                                                                                         Emissions Reduction Plan
                                                                                         (TERP).
                                             Section 101.359 ......................    Reporting ...............................           6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.360 ......................    Level of Activity Certification                     6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].

                                                         *                         *                            *                          *                       *                      *            *

                                                                                                           Division 4—Discrete Emission Credit Program

                                             Section 101.370 ......................    Definitions ..............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.371 ......................    Purpose ..................................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.372 ......................    General Provisions ................                 6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.373 ......................    Discrete Emission Reduction                         6/3/2015    5/11/2017, [Insert Federal
                                                                                         Credit Generation and Cer-                                      Register citation].
                                                                                         tification.

                                                      *                           *                  *                                     *                     *                        *            *
                                             Section 101.376 ...................... Discrete Emission Credit Use                           6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.378 ......................    Discrete Emission Credit                            6/3/2015    5/11/2017, [Insert Federal
                                                                                         Banking and Trading.                                            Register citation].
                                             Section 101.379 ......................    Program Audits and Reports                          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].

                                                                           Division 6—Highly Reactive Volatile Organic Compound Emissions Cap and Trade Program

                                             Section 101.390 ......................    Definitions ..............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.391 ......................    Applicability ............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
pmangrum on DSK3GDR082PROD with RULES




                                             Section 101.392 ......................    Exemptions ............................             6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.393 ......................    General Provisions ................                 6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.394 ......................    Allocation of Allowances ........                   6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].
                                             Section 101.396 ......................    Allowance Deductions ...........                    6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                         Register citation].



                                        VerDate Sep<11>2014     14:36 May 10, 2017     Jkt 241001     PO 00000      Frm 00014       Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1


                                                                    Federal Register / Vol. 82, No. 90 / Thursday, May 11, 2017 / Rules and Regulations                                                    21927

                                                                                         EPA-APPROVED REGULATIONS IN THE TEXAS SIP—Continued
                                                                                                                                       State
                                                                                                                                     approval/
                                                        State citation                             Title/subject                                            EPA approval date                Explanation
                                                                                                                                     submittal
                                                                                                                                       date

                                             Section 101.399 ......................   Allowance Banking and Trad-                        6/3/2015    5/11/2017, [Insert Federal
                                                                                         ing.                                                          Register citation].
                                             Section 101.400 ......................   Reporting ...............................          6/3/2015    5/11/2017, [Insert Federal
                                                                                                                                                       Register citation].

                                                      *                           *                   *                                  *                     *                     *                 *
                                             Section 117.410 ...................... Emission Specifications for                          6/3/2015    4/13/2016, 81 FR 21750 ........ 117.410(c) NOT in SIP.
                                                                                     Eight-Hour Attainment
                                                                                     Demonstration Reporting.

                                                      *                          *                  *                                    *                     *                        *              *
                                             Section 117.9810 .................... Use of Emission Reductions                            6/3/2015    5/11/2017, [Insert Federal
                                                                                     Generated from the Texas                                          Register citation].
                                                                                     Emissions Reduction Plan
                                                                                     (TERP).

                                                        *                         *                           *                          *                       *                      *              *



                                             *     *    *            *      *
                                               (e) * * *
                                             *     *    *            *      *

                                                            EPA-APPROVED NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES IN THE TEXAS SIP
                                                                                                                                       State
                                                                                      Applicable geographic or non-                  submittal/
                                                  Name of SIP provision                                                                                     EPA approval date                Comments
                                                                                             attainment area                          effective
                                                                                                                                        date


                                                      *                  *                   *                                           *                     *                        *              *
                                             Discrete Emissions Reduction Collin, Dallas, Denton, Ellis,                              12/10/2008     5/11/2017, [Insert Federal
                                               Credits (DERC) SIP.          Johnson, Kaufman, Parker,                                                  Register citation].
                                                                            Rockwall and Tarrant
                                                                            Counties, TX.



                                             *      *        *       *      *                               Source Performance Standards and                          Confidential Business Information (CBI)
                                             [FR Doc. 2017–09472 Filed 5–10–17; 8:45 am]                    National Emission Standards for                           or other information whose disclosure is
                                             BILLING CODE 6560–50–P                                         Hazardous Air Pollutants in Arizona                       restricted by statute. Multimedia
                                                                                                            and Nevada.                                               submissions (audio, video, etc.) must be
                                                                                                            DATES: This rule is effective on July 10,                 accompanied by a written comment.
                                             ENVIRONMENTAL PROTECTION                                       2017 without further notice, unless EPA                   The written comment is considered the
                                             AGENCY                                                         receives adverse comments by June 12,                     official comment and should include
                                             40 CFR Parts 60, 61 and 63                                     2017. If we receive such comments, we                     discussion of all points you wish to
                                                                                                            will publish a timely withdrawal in the                   make. The EPA will generally not
                                             [EPA–R09–OAR–2017–0071; FRL–9961–79-                           Federal Register to notify the public                     consider comments or comment
                                             Region 9]                                                      that this direct final rule will not take                 contents located outside of the primary
                                                                                                            effect.                                                   submission (i.e. on the web, cloud, or
                                             Delegation of New Source
                                                                                                            ADDRESSES: Submit your comments,                          other file sharing system). For
                                             Performance Standards and National
                                                                                                            identified by Docket ID No. EPA–R09–                      additional submission methods, please
                                             Emission Standards for Hazardous Air
                                                                                                            OAR–2017–0071 at https://                                 contact the person identified in the FOR
                                             Pollutants for the States of Arizona
                                                                                                            www.regulations.gov, or via email to                      FURTHER INFORMATION CONTACT section.
                                             and Nevada
                                                                                                            Steckel.Andrew@epa.gov. For comments                      For the full EPA public comment policy,
                                             AGENCY: Environmental Protection                               submitted at Regulations.gov, follow the                  information about CBI or multimedia
                                             Agency (EPA).                                                  online instructions for submitting                        submissions, and general guidance on
pmangrum on DSK3GDR082PROD with RULES




                                             ACTION: Direct final rule.                                     comments. Once submitted, comments                        making effective comments, please visit
                                                                                                            cannot be edited or removed from                          https://www2.epa.gov/dockets/
                                             SUMMARY:   The Environmental Protection                        Regulations.gov. For either manner of                     commenting-epa-dockets.
                                             Agency (EPA) is taking direct final                            submission, the EPA may publish any
                                             action to update the Code of Federal                           comment received to its public docket.                    FOR FURTHER INFORMATION CONTACT:
                                             Regulations delegation tables to reflect                       Do not submit electronically any                          Jeffrey Buss, EPA Region IX, (415) 947–
                                             the current delegation status of New                           information you consider to be                            4152, buss.jeffrey@epa.gov.


                                        VerDate Sep<11>2014      14:36 May 10, 2017   Jkt 241001     PO 00000      Frm 00015      Fmt 4700   Sfmt 4700   E:\FR\FM\11MYR1.SGM   11MYR1



Document Created: 2017-05-11 00:15:10
Document Modified: 2017-05-11 00:15:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionDirect final rule.
DatesThis rule is effective on July 10, 2017 without further notice, unless the EPA receives relevant adverse comment by June 12, 2017. If the EPA receives such comment, the EPA will publish a timely withdrawal in the Federal Register informing the public that this rule will not take effect.
ContactAdina Wiley, 214-665-2115, [email protected] To inspect the hard copy materials, please schedule an appointment with Ms. Adina Wiley or Mr. Bill Deese at 214- 665-7253.
FR Citation82 FR 21919 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Carbon Monoxide; Incorporation by Reference; Intergovernmental Relations; Lead; Nitrogen Oxide; Ozone; Reporting and Recordkeeping Requirements; Sulfur Oxides and Volatile Organic Compounds

2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR