82_FR_26743 82 FR 26634 - Approval and Promulgation of Implementation Plans; Texas; Revisions to Emissions Banking and Trading Programs for Area and Mobile Sources

82 FR 26634 - Approval and Promulgation of Implementation Plans; Texas; Revisions to Emissions Banking and Trading Programs for Area and Mobile Sources

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 109 (June 8, 2017)

Page Range26634-26638
FR Document2017-11906

Pursuant to the Federal Clean Air Act (CAA or the Act), the Environmental Protection Agency (EPA) is proposing to approve revisions to the Texas State Implementation Plan (SIP) Emissions Banking and Trading Programs submitted for parallel processing on March 10, 2017. Specifically, we are proposing to approve revisions that clarify and expand the existing provisions for the generation and use of emission credits from area and mobile sources.

Federal Register, Volume 82 Issue 109 (Thursday, June 8, 2017)
[Federal Register Volume 82, Number 109 (Thursday, June 8, 2017)]
[Proposed Rules]
[Pages 26634-26638]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-11906]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2017-0192; FRL-9962-32-Region 6]


Approval and Promulgation of Implementation Plans; Texas; 
Revisions to Emissions Banking and Trading Programs for Area and Mobile 
Sources

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: Pursuant to the Federal Clean Air Act (CAA or the Act), the 
Environmental Protection Agency (EPA) is proposing to approve revisions 
to the Texas State Implementation Plan (SIP) Emissions Banking and 
Trading Programs submitted for parallel processing on March 10, 2017. 
Specifically, we are proposing to approve revisions that clarify and 
expand the existing provisions for the generation and use of emission 
credits from area and mobile sources.

DATES: Written comments must be received on or before July 10, 2017.

ADDRESSES: Submit your comments, identified by Docket No. EPA-R06-OAR-
2017-0192, 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

[[Page 26635]]

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 the 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.

SUPPLEMENTARY INFORMATION: Throughout this document wherever ``we,'' 
``us,'' or ``our'' is used, we mean 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 
(EIP) 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 proposed action will address revisions to two of the Texas 
emissions trading programs--the Texas Emission Credit (EC) and Discrete 
Emission Credit (DEC) Programs that were submitted to the EPA on March 
10, 2017, with a request for parallel processing. The EPA is proposing 
approval at the same time that the Texas Commission on Environmental 
Quality (TCEQ) is completing the corresponding public comment and 
rulemaking process at the state level. The March 10, 2017, SIP revision 
request will not be complete and will not meet all the SIP 
approvability criteria until the state completes the public process and 
submits the final, adopted SIP revision with a letter from the Governor 
or Governor's designee to EPA. The EPA is proposing to approve the SIP 
revision request after completion of the state public process and final 
submittal. Please see the Technical Support Document (TSD) accompanying 
this rulemaking for an identification of the specific sections impacted 
by this proposed rulemaking.
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    \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 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).
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B. Overview of the Texas Emissions Banking and Trading Programs

1. The 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). The 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). The EPA has 
taken a separate action via a direct final rulemaking to address the 
revisions to the EC Program adopted on June 5, 2015 and submitted to 
the EPA as a SIP revision on August 14, 2015. See 82 FR 21919, May 11, 
2017.
    On March 8, 2017, the TCEQ Commissioners voted to propose for 
adoption revisions to the EC Program that clarify and augment the 
existing regulations pertaining to the generation and use of ECs from 
area and mobile sources. The TCEQ submitted this proposal package on 
March 10, 2017 with a request for parallel processing.
2. The 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 RACT 
compliance for Volatile Organic Compounds (VOCs) and nitrogen oxides 
(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). The EPA is addressing, in a 
separate direct final action, revisions to the DEC program that were 
submitted on December 22, 2008; May 14, 2013; and August 14, 2015. See 
82 FR 21919, May 11, 2017.
    On March 8, 2017, the TCEQ Commissioners voted to propose for 
adoption revisions to the DEC Program that clarify and augment the 
existing regulations pertaining to the generation and use of DECs from 
area and mobile sources. The TCEQ submitted this proposal package on 
March 10, 2017 with a request for parallel processing.

II. The EPA's Evaluation

    Both the Texas EC and DEC SIP programs contain existing language to 
provide for the generation of emission reductions from area and mobile 
sources. The TCEQ is proposing revisions to the existing regulations to 
clarify the processes for area and mobile source credit generation and 
quantification in an effort to incentivize increased utilization of the 
program. The accompanying TSD for this action includes a detailed 
analysis of the

[[Page 26636]]

proposed revisions submitted for EPA's consideration for parallel 
processing.\2\ In many instances the revisions are minor or non-
substantive in nature and do not change the intent of the original SIP-
approved EC or DEC programs. Following is a summary of our analysis for 
those revisions that we view as substantive revisions to the existing 
SIP-approved programs.
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    \2\ The accompanying Technical Support Document is available in 
the rulemaking docket, EPA-R06-OAR-2017-0192.
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A. Addressing Uncertainty in Area and Mobile Source Emission Estimates

    The area and mobile source inventories used by TCEQ for attainment 
planning are based on emission estimates and models rather than actual 
reported emissions data. To reduce the uncertainty in the emission 
estimates in the overall area and mobile source inventories, the TCEQ 
is proposing revisions to the definition of ``State Implementation Plan 
(SIP) emissions'' at 30 TAC Sections 101.300(30) and 101.370(31) to 
discount the overall area and mobile source pool available for 
generating reductions; 75% of the respective area source and non-road 
mobile source emissions inventory is eligible to generate emission 
reductions, and 85% of the on-road mobile source emissions inventory is 
eligible to generate emission reductions. The TCEQ is also proposing at 
30 TAC Sections 101.303(b), 101.304(b), 101.373(b), and 101.374(b) that 
the emission and activity rates used to determine the historical 
adjusted emissions for area and mobile source generation strategies 
will be determined from two consecutive years from the past five years. 
The lookback window may be extended up to 10 years if the source has 
detailed operational records to demonstrate the actual emissions.
    The EPA proposes that the overall reduction factor in the area and 
mobile source inventories available for credit generation is 
appropriate and approvable. We also propose that limiting the lookback 
window to five years, with the ability to extend up to 10 years if 
detailed operational records are available, is appropriate and 
approvable. In both instances, the TCEQ has identified an area of 
uncertainty and presented a reasonable method for mitigating the 
uncertainty and ensuring the credits generated under the EC and DEC 
programs represent real reductions that will benefit the airshed. 
Restricting the lookback window to five years addresses the differences 
in emission estimations used for area and mobile sources and the 
reported actual emissions in the point source universe. The option to 
extend the lookback window up to 10 years for detailed operational 
records will also encourage and incentivize more detailed emissions 
monitoring and recordkeeping for area and mobile sources.

B. Limiting the Sources and Strategies Eligible for Generating ECs or 
DECs

    The TCEQ has submitted proposed revisions to the General Provisions 
of the EC and DEC programs at 30 TAC Sections 101.302(c) and 101.372(c) 
to identify the source categories ineligible for generating ECs or 
DECs. Examples of ineligible source categories include residential area 
sources and on-road mobile sources that are not part of an industrial, 
commercial, nonprofit, institutional, or municipal/government fleet. 
Additionally, the TCEQ has proposed at 30 TAC Section 101.303(a)(2)(D) 
that ERCs may not be generated from shutdowns of specific types of 
inelastic area sources that are driven by population demands.\3\ A list 
of inelastic area sources will be maintained by the TCEQ on the agency 
Web site; the TCEQ has proposed a methodology where any person can 
petition the TCEQ Executive Director to add or remove source categories 
from the list.
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    \3\ Inelastic is an economic term used to describe when the 
supply and demand for a good or service is independent of the price. 
In the context of the proposed Texas rules, an inelastic area source 
is a source that will exist regardless of economic factors. Gas 
stations and dry cleaners are examples of inelastic area sources 
because the population will demand these services regardless of 
price.
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    The EPA proposes to find that the TCEQ has appropriately revised 
the EC and DEC programs to identify the sources and types of emission 
reduction strategies eligible for participation within the programs. 
The TCEQ has proposed to limit the eligible source categories to those 
where the sources have required established emissions monitoring and 
recordkeeping provisions and the TCEQ has the authority to ensure the 
reductions will be federally enforceable and permanent, as applicable, 
through construction permits or other certifications. These limits will 
ensure that the emission reductions generated are real, quantifiable, 
surplus, and permanent as required by the Texas SIP.
    The exclusion of shutdowns from inelastic area sources is an 
appropriate method to prevent demand shifting--an outcome where one 
inelastic source (for example, a dry cleaner or gas station) will shut 
down and the same type of source will open down the street based on 
population needs and economic considerations. There is no net reduction 
in emissions in this scenario; by prohibiting inelastic area source 
shutdowns from generating reductions the TCEQ is protecting the airshed 
by ensuring generated and banked ERCs will be real, permanent and 
surplus. The proposed methodology for developing and maintaining the 
inelastic area source category list is also approvable; the proposed 
methodology provides a replicable mechanism for public input.

C. Addressing Uncertainty in the Area and Mobile Source Generation 
Strategy

    The TCEQ is proposing additional adjustment factors to address 
uncertainty in credit generation and quantification at 30 TAC Sections 
101.303(c), 101.304(c), 101.372(c) and 101.374(c). For emission 
reductions from the shutdown of area or mobile sources, the TCEQ is 
proposing that the amount of ECs or MDERCs will be reduced by 15%. For 
emission reductions of area or mobile sources using alternative methods 
for emissions quantifications, the TCEQ is proposing that the amount of 
ECs or DECs will be reduced by 15%. If the source is subject to both 
adjustment factors, the TCEQ proposes the total combined reduction will 
be 20%.
    The EPA proposes to find that the proposed adjustment factors 
applied to credit generation and certification are approvable. The 
adjustment factor applied for the shutdown of area or mobile sources 
will mitigate the possibility of unanticipated demand shifting. The 
adjustment factor applied for alternative methods of emissions 
quantification will address the uncertainty associated with emission 
estimation techniques and could serve to incentivize the use of more 
robust emissions monitoring and reporting consistent with point source 
requirements. These adjustment factors will help ensure that the TCEQ 
certifies emission reductions that are real, surplus, quantifiable, and 
permanent as required by the CAA and the Texas SIP.

D. Exceptions to Application Deadlines and Emission Credit Lifetimes

    The Texas SIP currently provides that ECs will have a lifetime of 
60 months (5 years) from the date of the emission reduction, see 30 TAC 
Section 101.309(b). The TCEQ has proposed limited exceptions to the EC 
application deadline and credit lifetimes at 30 TAC Sections 101.303(d) 
and 101.304(e). The TCEQ has demonstrated that the extended application 
deadlines and credit lifetimes would apply to a small subset of the 
potential EC population for

[[Page 26637]]

a specified time period. These extensions in lifetime are proposed to 
assist in program implementation, incentivize expeditious plugging of 
oil and gas wells, and to equitably process the EC applications 
submitted during the stakeholder and rule development process. Each of 
the applications with the extended lifetime will be processed by the 
TCEQ in accordance with the proposed regulations; the TCEQ will apply 
the overall discount to the area or mobile source inventories and apply 
the adjustment factors to address uncertainty in the emission 
estimations and unanticipated activity shifting. The TCEQ also has 
existing SIP-authority at 30 TAC Section 101.302(g), proposed to be 
renumbered as 101.302(i), to require recordkeeping beyond the nominal 5 
year lifetime of the EC. In its preamble to the proposed state rule, 
the TCEQ interprets this existing SIP-authority to require 
recordkeeping for the entirety of the extended EC lifetime and states 
this requirement would be annotated in the federally enforceable 
certification paperwork required by the TCEQ executive director; 
thereby ensuring that the recordkeeping for the ECs with the extended 
lifetime continues to satisfy the CAA and the Texas SIP.\4\ The 
proposed limited exceptions to the EC application deadline and credit 
lifetimes at 30 TAC Sections 101.303(d) and 101.304(e) are approvable. 
We are making a preliminary finding that the TCEQ has appropriately 
defined the scope of the EC program and has the authority to require 
recordkeeping for the life of the generated ECs to ensure compliance 
with the CAA and the Texas SIP.
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    \4\ See 42 TexReg 1340, March 24, 2017.
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E. Clarification of the DEC Program To Provide for the Generation of 
MDERCs From Shutdowns

    The TCEQ is proposing to clarify the existing SIP-approved language 
for MDERC generation at 30 TAC Section 101.374(c)(1) to explicitly 
provide for the generation of MDERCs from shutdowns, including 
permanent shutdowns and temporary curtailments of activity from a 
mobile source. The TCEQ must still review each MDERC generated from a 
shutdown to determine whether the reduction is real, quantifiable, 
surplus and enforceable before certifying the reduction, consistent 
with the Texas SIP and the CAA.
    The EPA is proposing to approve the clarification of the MDERC 
generation language to provide for generation of credits from mobile 
source shutdowns. Sources have traditionally not availed themselves of 
the current SIP provisions for generating MDERCs, therefore any 
generation of emission reductions (including those from the shutdown of 
mobile sources) would likely be considered innovative and novel. The 
DEC program is an open market trading program designed to promote 
creative and innovative emission strategies. We believe that emission 
reduction strategies for the shutdown of mobile sources is consistent 
with the intent of the EIP because these strategies could result in a 
benefit to the specific airshed and promote and incentivize mobile 
source reductions. The emission adjustment factor of 15% proposed by 
the TCEQ will address any uncertainties associated with the generation 
of MDERCs from shutdowns or concerns about activity shifting, further 
ensuring that the reduction strategies generate real, enforceable and 
surplus reductions.

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

    Our analysis indicates that the March 8, 2017 regulations proposed 
for adoption by TCEQ have been developed in accordance with the CAA and 
submitted on March 10, 2017 with a request for parallel processing. 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 nonattainment New Source Review permitting program. 
The proposed revisions to the EC and DEC programs further clarify and 
update the existing programs specific to the generation and use of 
emission reductions from area and mobile sources. These submitted 
proposed revisions do not change the fundamental premise or structure 
of the approved programs. Therefore, we find that the proposed 
revisions to the EC and DEC programs will not interfere with 
attainment, reasonable further progress or any other applicable 
requirements of the Act.

III. Proposed Action

    The EPA has made the preliminary determination that the March 10, 
2017, proposed revisions to the Texas SIP and request for parallel 
processing are in accordance with the CAA and consistent with the CAA 
and the EPA's policy and guidance on emissions trading. Therefore, 
under section 110 of the Act, the EPA proposes to approve the following 
revisions to the Texas SIP that were proposed for adoption on March 8, 
2017 and submitted for parallel processing on March 10, 2017:
     Revisions to 30 TAC Section 101.300;
     Revisions to 30 TAC Section 101.302;
     Revisions to 30 TAC Section 101.303;
     Revisions to 30 TAC Section 101.304;
     Revisions to 30 TAC Section 101.306;
     Revisions to 30 TAC Section 101.370;
     Revisions to 30 TAC Section 101.372;
     Revisions to 30 TAC Section 101.373;
     Revisions to 30 TAC Section 101.374; and
     Revisions to 30 TAC Section 101.376.
    The EPA is proposing this action in parallel with the state's 
rulemaking process. We cannot take a final action until the state 
completes its rulemaking process, adopts its final regulations, and 
submits these final adopted regulations as a revision to the Texas SIP. 
If during the response to comments process, the state rule is changed 
significantly from the proposed rule and the rule upon which the EPA 
proposed, the EPA may have to withdraw our initial proposed rule and 
repropose based on the final SIP submittal.

IV. Incorporation by Reference

    In this action, we are proposing to include in a final rule 
regulatory text that includes incorporation by reference. In accordance 
with the requirements of 1 CFR 51.5, we are proposing to incorporate by 
reference revisions to the Texas regulations as described in the 
Proposed 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 proposes to approve 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

[[Page 26638]]

Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 
3821, January 21, 2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide 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 proposed rule does not have tribal implications and will 
not impose substantial direct costs on tribal governments or preempt 
tribal law as specified by Executive Order 13175 (65 FR 67249, November 
9, 2000).

List of Subjects in 40 CFR Part 52

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

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

    Dated: May 24, 2017.
Samuel Coleman,
Acting Regional Administrator, Region 6.
[FR Doc. 2017-11906 Filed 6-7-17; 8:45 am]
 BILLING CODE 6560-50-P



                                                      26634                    Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules

                                                      should find a reference to that collection              ENVIRONMENTAL PROTECTION                                 For additional information, see the
                                                      of information in the rulemaking                        AGENCY                                                 direct final rule which is located in the
                                                      documents (normally a notice of                                                                                rules section of this Federal Register.
                                                      proposed rulemaking and a final rule)                   40 CFR Part 52                                           Dated: May 24, 2017.
                                                      we published to establish the regulation.               [EPA–R06–OAR–2016–0464; FRL–9962–22–                   Samuel Coleman,
                                                      But whether a collection is associated                  Region 6]                                              Acting Regional Administrator, Region 6.
                                                      with a regulation or not, you will be
                                                                                                                                                                     [FR Doc. 2017–11902 Filed 6–7–17; 8:45 am]
                                                      able to find our approved collections of                Approval and Promulgation of
                                                      information in www.reginfo.gov. Our                                                                            BILLING CODE 6560–50–P
                                                                                                              Implementation Plans; Texas;
                                                      collections have approval numbers in                    Revisions to the General Definitions
                                                      the 1625-series and are listed with other               for Texas Air Quality Rules
                                                                                                                                                                     ENVIRONMENTAL PROTECTION
                                                      Department of Homeland Security
                                                                                                              AGENCY:  Environmental Protection                      AGENCY
                                                      collections.
                                                                                                              Agency (EPA).
                                                      Public Participation and Comments                                                                              40 CFR Part 52
                                                                                                              ACTION: Proposed rule.
                                                         If you submit a comment, please                                                                             [EPA–R06–OAR–2017–0192; FRL–9962–32–
                                                                                                              SUMMARY:    Pursuant to the Federal Clean              Region 6]
                                                      include the docket number for this                      Air Act (CAA), the Environmental
                                                      notice requesting comments (USCG–                       Protection Agency (EPA) is proposing to                Approval and Promulgation of
                                                      2017–0480), indicate the specific                       approve revisions of the Texas State                   Implementation Plans; Texas;
                                                      regulation, guidance document,                          Implementation Plan (SIP) pertaining to                Revisions to Emissions Banking and
                                                      interpretative document, or collection of               EPA’s latest definition of volatile                    Trading Programs for Area and Mobile
                                                      information you are commenting on,                      organic compounds (VOC), aligning the                  Sources
                                                      and provide a reason for each suggestion                lead reporting threshold with the EPA’s
                                                      or recommendation. Please make your                     Annual Emissions Reporting Rule                        AGENCY:  Environmental Protection
                                                      comments as specific as possible, and                   (AERR), shortening the distance from                   Agency (EPA).
                                                      include any supporting data or other                    the shoreline for applicable offshore                  ACTION: Proposed rule.
                                                      information, such as cost information,                  sources to report an emission inventory,
                                                      you may have. Also, if you are                                                                                 SUMMARY:    Pursuant to the Federal Clean
                                                                                                              and revising terminology and                           Air Act (CAA or the Act), the
                                                      commenting on a regulation, please                      definitions for clarity or consistency
                                                      provide a Federal Register (FR) or Code                                                                        Environmental Protection Agency (EPA)
                                                                                                              with the EPA’s AERR. EPA is proposing                  is proposing to approve revisions to the
                                                      of Federal Regulations (CFR) citation                   these actions under section 110 of the
                                                      when referencing a specific regulation,                                                                        Texas State Implementation Plan (SIP)
                                                                                                              CAA through a direct final rulemaking.                 Emissions Banking and Trading
                                                      and provide specific suggestions
                                                                                                              DATES: Written comments should be                      Programs submitted for parallel
                                                      regarding repeal, replacement or
                                                      modification.                                           received on or before July 10, 2017.                   processing on March 10, 2017.
                                                                                                              ADDRESSES: Submit your comments,                       Specifically, we are proposing to
                                                         We encourage you to submit
                                                                                                              identified by EPA–R06–OAR–2016–                        approve revisions that clarify and
                                                      comments through the Federal
                                                                                                              0464, at http://www.regulations.gov or                 expand the existing provisions for the
                                                      eRulemaking Portal at http://
                                                                                                              via email to Ms. Nevine Salem. For                     generation and use of emission credits
                                                      www.regulations.gov. If your material
                                                                                                              additional information on how to                       from area and mobile sources.
                                                      cannot be submitted using http://
                                                                                                              submit comments see the detailed                       DATES: Written comments must be
                                                      www.regulations.gov, contact the person
                                                                                                              instructions in the ADDRESSES section of               received on or before July 10, 2017.
                                                      in the FOR FURTHER INFORMATION
                                                                                                              the direct final rule located in the rules             ADDRESSES: Submit your comments,
                                                      CONTACT section of this document for
                                                                                                              section of this Federal Register.                      identified by Docket No. EPA–R06–
                                                      alternate instructions. Copies of
                                                      Executive Orders 13771, 13777, and                      FOR FURTHER INFORMATION CONTACT: Ms.                   OAR–2017–0192, at http://
                                                      13783, and all public comments are                      Nevine Salem, (214) 665–7222,                          www.regulations.gov or via email to
                                                      available in our online docket at http://               salem.nevine@epa.gov.                                  wiley.adina@epa.gov. Follow the online
                                                      www.regulations.gov.                                    SUPPLEMENTARY INFORMATION: In the                      instructions for submitting comments.
                                                         We accept anonymous comments. All                    final rules section of this Federal                    Once submitted, comments cannot be
                                                      comments received will be posted                        Register, the EPA is approving the                     edited or removed from Regulations.gov.
                                                      without change to http://                               State’s SIP submittal as a direct rule                 The EPA may publish any comment
                                                      www.regulations.gov and will include                    without prior proposal because the                     received to its public docket. Do not
                                                      any personal information you have                       Agency views this as noncontroversial                  submit electronically any information
                                                      provided. For more about privacy and                    submittal and anticipates no adverse                   you consider to be Confidential
                                                      the docket, visit http://                               comments. A detailed rationale for the                 Business Information (CBI) or other
                                                      www.regulations.gov/privacyNotice.                      approval is set forth in the direct final              information whose disclosure is
                                                                                                              rule. If no relevant adverse comments                  restricted by statute. Multimedia
                                                         Although the Coast Guard will not
                                                                                                              are received in response to this action                submissions (audio, video, etc.) must be
                                                      respond to individual comments, we
                                                                                                              no further activity is contemplated. If                accompanied by a written comment.
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                                                      value your comments and will give
                                                                                                              the EPA receives relevant adverse                      The written comment is considered the
                                                      careful consideration to them.
                                                                                                              comments, the direct final rule will be                official comment and should include
                                                        Dated: June 1, 2017.                                  withdrawn and all public comments                      discussion of all points you wish to
                                                      J.G. Lantz,                                             received will be addressed in a                        make. The EPA will generally not
                                                      Senior Accountable Regulatory Official,                 subsequent final rule based on this                    consider comments or comment
                                                      Director of Commercial Regulations and                  proposed rule. The EPA will not                        contents located outside of the primary
                                                      Standards.                                              institute a second comment period. Any                 submission (i.e. on the web, cloud, or
                                                      [FR Doc. 2017–11930 Filed 6–7–17; 8:45 am]              parties interested in commenting on this               other file sharing system). For
                                                      BILLING CODE 9110–04–P                                  action should do so at this time.                      additional submission methods, please


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                                                                               Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules                                            26635

                                                      contact Adina Wiley, 214–665–2115,                      action will address revisions to two of                revision on August 14, 2015. See 82 FR
                                                      wiley.adina@epa.gov. For the full EPA                   the Texas emissions trading programs—                  21919, May 11, 2017.
                                                      public comment policy, information                      the Texas Emission Credit (EC) and                       On March 8, 2017, the TCEQ
                                                      about CBI or multimedia submissions,                    Discrete Emission Credit (DEC)                         Commissioners voted to propose for
                                                      and general guidance on making                          Programs that were submitted to the                    adoption revisions to the EC Program
                                                      effective comments, please visit http://                EPA on March 10, 2017, with a request                  that clarify and augment the existing
                                                      www2.epa.gov/dockets/commenting-                        for parallel processing. The EPA is                    regulations pertaining to the generation
                                                      epa-dockets.                                            proposing approval at the same time                    and use of ECs from area and mobile
                                                         Docket: The index to the docket for                  that the Texas Commission on                           sources. The TCEQ submitted this
                                                      this action is available electronically at              Environmental Quality (TCEQ) is                        proposal package on March 10, 2017
                                                      www.regulations.gov and in hard copy                    completing the corresponding public                    with a request for parallel processing.
                                                      at the EPA Region 6, 1445 Ross Avenue,                  comment and rulemaking process at the                  2. The DEC Program
                                                      Suite 700, Dallas, Texas. While all                     state level. The March 10, 2017, SIP
                                                      documents in the docket are listed in                                                                             The DEC Program enacted at 30 TAC
                                                                                                              revision request will not be complete
                                                      the index, some information may be                                                                             Chapter 101, Subchapter H, Division 4
                                                                                                              and will not meet all the SIP
                                                      publicly available only at the hard copy                                                                       allows an owner or operator of a facility
                                                                                                              approvability criteria until the state                 or mobile source to generate discrete
                                                      location (e.g., copyrighted material), and              completes the public process and
                                                      some may not be publicly available at                                                                          emission credits by reducing emissions
                                                                                                              submits the final, adopted SIP revision                of criteria pollutants or their precursors,
                                                      either location (e.g., CBI).                            with a letter from the Governor or                     with the exception of lead, below any
                                                      FOR FURTHER INFORMATION CONTACT:                        Governor’s designee to EPA. The EPA is                 applicable regulation or requirement.
                                                      Adina Wiley, 214–665–2115,                              proposing to approve the SIP revision                  Discrete emission credits (DECs) are
                                                      wiley.adina@epa.gov. To inspect the                     request after completion of the state                  quantified, banked and traded in terms
                                                      hard copy materials, please schedule an                 public process and final submittal.                    of mass (tons), not a rate as is the case
                                                      appointment with Ms. Adina Wiley or                     Please see the Technical Support                       with ECs. DECs may be generated from
                                                      Mr. Bill Deese at 214–665–7253.                         Document (TSD) accompanying this                       stationary sources and banked as
                                                      SUPPLEMENTARY INFORMATION:                              rulemaking for an identification of the                discrete emission reduction credits
                                                      Throughout this document wherever                       specific sections impacted by this                     (DERCs) or may be generated from
                                                      ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean             proposed rulemaking.                                   mobile sources and banked as mobile
                                                      the EPA.                                                                                                       discrete emission reduction credits
                                                                                                              B. Overview of the Texas Emissions
                                                      I. Background                                           Banking and Trading Programs                           (MDERCs). Traditionally DECs have
                                                                                                                                                                     been used for RACT compliance for
                                                      A. CAA and SIPs                                         1. The EC Program                                      Volatile Organic Compounds (VOCs)
                                                         Section 110 of the CAA requires states                                                                      and nitrogen oxides (NOX); DECs can
                                                      to develop and submit to the EPA a SIP                     The EC Program enacted at 30 Texas                  also be used to offset new major sources
                                                      to ensure that state air quality meets the              Administrative Code (TAC) Chapter                      or major modifications to existing
                                                      National Ambient Air Quality Standards                  101, Subchapter H, Division 1 allows                   sources in nonattainment areas. The
                                                      (NAAQS). These ambient standards                        owners or operators of a facility or                   EPA initially approved the DEC Program
                                                      currently address six criteria pollutants:              mobile source to generate emission                     on September 6, 2006, with updates
                                                      carbon monoxide, nitrogen dioxide,                      credits by reducing emissions of criteria              approved on May 18, 2010 (75 FR
                                                      ozone, lead, particulate matter, and                    pollutants or their precursors, with the               27644). The EPA is addressing, in a
                                                      sulfur dioxide. Each federally-approved                 exception of lead, below any applicable                separate direct final action, revisions to
                                                      SIP protects air quality primarily by                   regulations or requirements. Emission                  the DEC program that were submitted
                                                      addressing air pollution at its point of                credits are generated and banked in                    on December 22, 2008; May 14, 2013;
                                                      origin through air pollution regulations                terms of rate (tons per year). The ECs                 and August 14, 2015. See 82 FR 21919,
                                                      and control strategies. The EPA-                        encompass reductions generated and                     May 11, 2017.
                                                      approved SIP regulations and control                    banked from stationary sources as                         On March 8, 2017, the TCEQ
                                                      strategies are federally enforceable.                   emission reduction credits (ERCs) or                   Commissioners voted to propose for
                                                         The Texas SIP includes several                       generated and banked from mobile                       adoption revisions to the DEC Program
                                                      discretionary emissions trading                         sources as mobile emission reduction                   that clarify and augment the existing
                                                      programs developed consistent with the                  credits (MERCs). The ECs from the bank                 regulations pertaining to the generation
                                                      EPA’s Economic Incentive Program                        have traditionally been used as offsets                and use of DECs from area and mobile
                                                      (EIP) Guidance, that are designed to                    for the permitting of major new or                     sources. The TCEQ submitted this
                                                      promote flexibility and innovation in                   modified facilities in nonattainment                   proposal package on March 10, 2017
                                                      complying with State and Federal air                    areas. ECs have also been banked and                   with a request for parallel processing.
                                                      emission requirements established in                    traded for alternative compliance with
                                                                                                              Reasonably Available Control                           II. The EPA’s Evaluation
                                                      the SIP and the SIP-approved air
                                                      permitting programs.1 This proposed                     Technology (RACT) requirements. The                       Both the Texas EC and DEC SIP
                                                                                                              EPA initially approved the EC program                  programs contain existing language to
                                                                                                              on September 6, 2006 (71 FR 52698)                     provide for the generation of emission
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                                                        1 ‘‘Improving Air Quality with Economic

                                                      Incentive Programs’’ (EIP Guidance) (EPA–452/R–         with updates approved on May 18, 2010                  reductions from area and mobile
                                                      01–001, January 2001) is the EPA guidance               (75 FR 27647). The EPA has taken a                     sources. The TCEQ is proposing
                                                      document for reviewing and approving
                                                      discretionary EIP submittals. The EIP Guidance          separate action via a direct final                     revisions to the existing regulations to
                                                      applies to the establishment of a discretionary EIP     rulemaking to address the revisions to                 clarify the processes for area and mobile
                                                      for attaining or maintaining the NAAQS for criteria     the EC Program adopted on June 5, 2015                 source credit generation and
                                                      pollutants. The EIP Guidance supersedes and takes       and submitted to the EPA as a SIP                      quantification in an effort to incentivize
                                                      precedence over the discretionary EIP guidance
                                                      provided in prior documents such as the 1994 EIP
                                                                                                                                                                     increased utilization of the program.
                                                      (April 7, 1994, 59 FR 16690, 40 CFR part 51,            policy statement (ETPS) (December 4, 1986, 51 FR       The accompanying TSD for this action
                                                      subpart U) and the guidance in the emission trading     43813).                                                includes a detailed analysis of the


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                                                      26636                    Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules

                                                      proposed revisions submitted for EPA’s                  emissions in the point source universe.                  considerations. There is no net
                                                      consideration for parallel processing.2                 The option to extend the lookback                        reduction in emissions in this scenario;
                                                      In many instances the revisions are                     window up to 10 years for detailed                       by prohibiting inelastic area source
                                                      minor or non-substantive in nature and                  operational records will also encourage                  shutdowns from generating reductions
                                                      do not change the intent of the original                and incentivize more detailed emissions                  the TCEQ is protecting the airshed by
                                                      SIP-approved EC or DEC programs.                        monitoring and recordkeeping for area                    ensuring generated and banked ERCs
                                                      Following is a summary of our analysis                  and mobile sources.                                      will be real, permanent and surplus.
                                                      for those revisions that we view as                                                                              The proposed methodology for
                                                      substantive revisions to the existing SIP-              B. Limiting the Sources and Strategies                   developing and maintaining the
                                                      approved programs.                                      Eligible for Generating ECs or DECs                      inelastic area source category list is also
                                                                                                                 The TCEQ has submitted proposed                       approvable; the proposed methodology
                                                      A. Addressing Uncertainty in Area and                   revisions to the General Provisions of                   provides a replicable mechanism for
                                                      Mobile Source Emission Estimates                        the EC and DEC programs at 30 TAC                        public input.
                                                         The area and mobile source                           Sections 101.302(c) and 101.372(c) to
                                                      inventories used by TCEQ for                            identify the source categories ineligible                C. Addressing Uncertainty in the Area
                                                      attainment planning are based on                                                                                 and Mobile Source Generation Strategy
                                                                                                              for generating ECs or DECs. Examples of
                                                      emission estimates and models rather                    ineligible source categories include                        The TCEQ is proposing additional
                                                      than actual reported emissions data. To                 residential area sources and on-road                     adjustment factors to address
                                                      reduce the uncertainty in the emission                  mobile sources that are not part of an                   uncertainty in credit generation and
                                                      estimates in the overall area and mobile                industrial, commercial, nonprofit,                       quantification at 30 TAC Sections
                                                      source inventories, the TCEQ is                         institutional, or municipal/government                   101.303(c), 101.304(c), 101.372(c) and
                                                      proposing revisions to the definition of                fleet. Additionally, the TCEQ has                        101.374(c). For emission reductions
                                                      ‘‘State Implementation Plan (SIP)                       proposed at 30 TAC Section                               from the shutdown of area or mobile
                                                      emissions’’ at 30 TAC Sections                          101.303(a)(2)(D) that ERCs may not be                    sources, the TCEQ is proposing that the
                                                      101.300(30) and 101.370(31) to discount                 generated from shutdowns of specific                     amount of ECs or MDERCs will be
                                                      the overall area and mobile source pool                 types of inelastic area sources that are                 reduced by 15%. For emission
                                                      available for generating reductions; 75%                driven by population demands.3 A list                    reductions of area or mobile sources
                                                      of the respective area source and non-                  of inelastic area sources will be                        using alternative methods for emissions
                                                      road mobile source emissions inventory                  maintained by the TCEQ on the agency                     quantifications, the TCEQ is proposing
                                                      is eligible to generate emission                        Web site; the TCEQ has proposed a                        that the amount of ECs or DECs will be
                                                      reductions, and 85% of the on-road                      methodology where any person can                         reduced by 15%. If the source is subject
                                                      mobile source emissions inventory is                    petition the TCEQ Executive Director to                  to both adjustment factors, the TCEQ
                                                      eligible to generate emission reductions.               add or remove source categories from                     proposes the total combined reduction
                                                      The TCEQ is also proposing at 30 TAC                    the list.                                                will be 20%.
                                                      Sections 101.303(b), 101.304(b),                           The EPA proposes to find that the                        The EPA proposes to find that the
                                                      101.373(b), and 101.374(b) that the                     TCEQ has appropriately revised the EC                    proposed adjustment factors applied to
                                                      emission and activity rates used to                     and DEC programs to identify the                         credit generation and certification are
                                                      determine the historical adjusted                       sources and types of emission reduction                  approvable. The adjustment factor
                                                      emissions for area and mobile source                    strategies eligible for participation                    applied for the shutdown of area or
                                                      generation strategies will be determined                within the programs. The TCEQ has                        mobile sources will mitigate the
                                                      from two consecutive years from the                     proposed to limit the eligible source                    possibility of unanticipated demand
                                                      past five years. The lookback window                    categories to those where the sources                    shifting. The adjustment factor applied
                                                      may be extended up to 10 years if the                   have required established emissions                      for alternative methods of emissions
                                                      source has detailed operational records                 monitoring and recordkeeping                             quantification will address the
                                                      to demonstrate the actual emissions.                    provisions and the TCEQ has the                          uncertainty associated with emission
                                                         The EPA proposes that the overall                    authority to ensure the reductions will                  estimation techniques and could serve
                                                      reduction factor in the area and mobile                 be federally enforceable and permanent,                  to incentivize the use of more robust
                                                      source inventories available for credit                 as applicable, through construction                      emissions monitoring and reporting
                                                      generation is appropriate and                           permits or other certifications. These                   consistent with point source
                                                      approvable. We also propose that                        limits will ensure that the emission                     requirements. These adjustment factors
                                                      limiting the lookback window to five                    reductions generated are real,                           will help ensure that the TCEQ certifies
                                                      years, with the ability to extend up to                 quantifiable, surplus, and permanent as                  emission reductions that are real,
                                                      10 years if detailed operational records                required by the Texas SIP.                               surplus, quantifiable, and permanent as
                                                      are available, is appropriate and                          The exclusion of shutdowns from                       required by the CAA and the Texas SIP.
                                                      approvable. In both instances, the TCEQ                 inelastic area sources is an appropriate                 D. Exceptions to Application Deadlines
                                                      has identified an area of uncertainty and               method to prevent demand shifting—an                     and Emission Credit Lifetimes
                                                      presented a reasonable method for                       outcome where one inelastic source (for
                                                                                                                                                                         The Texas SIP currently provides that
                                                      mitigating the uncertainty and ensuring                 example, a dry cleaner or gas station)
                                                                                                                                                                       ECs will have a lifetime of 60 months
                                                      the credits generated under the EC and                  will shut down and the same type of
                                                                                                                                                                       (5 years) from the date of the emission
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                                                      DEC programs represent real reductions                  source will open down the street based
                                                                                                                                                                       reduction, see 30 TAC Section
                                                      that will benefit the airshed. Restricting              on population needs and economic
                                                                                                                                                                       101.309(b). The TCEQ has proposed
                                                      the lookback window to five years
                                                                                                                                                                       limited exceptions to the EC application
                                                      addresses the differences in emission                      3 Inelastic is an economic term used to describe

                                                                                                              when the supply and demand for a good or service         deadline and credit lifetimes at 30 TAC
                                                      estimations used for area and mobile
                                                                                                              is independent of the price. In the context of the       Sections 101.303(d) and 101.304(e). The
                                                      sources and the reported actual                         proposed Texas rules, an inelastic area source is a      TCEQ has demonstrated that the
                                                                                                              source that will exist regardless of economic factors.
                                                        2 The accompanying Technical Support                  Gas stations and dry cleaners are examples of
                                                                                                                                                                       extended application deadlines and
                                                      Document is available in the rulemaking docket,         inelastic area sources because the population will       credit lifetimes would apply to a small
                                                      EPA–R06–OAR–2017–0192.                                  demand these services regardless of price.               subset of the potential EC population for


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                                                                                 Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules                                           26637

                                                      a specified time period. These                            themselves of the current SIP provisions                 • Revisions to 30 TAC Section
                                                      extensions in lifetime are proposed to                    for generating MDERCs, therefore any                   101.300;
                                                      assist in program implementation,                         generation of emission reductions                        • Revisions to 30 TAC Section
                                                      incentivize expeditious plugging of oil                   (including those from the shutdown of                  101.302;
                                                      and gas wells, and to equitably process                   mobile sources) would likely be                          • Revisions to 30 TAC Section
                                                      the EC applications submitted during                      considered innovative and novel. The                   101.303;
                                                      the stakeholder and rule development                      DEC program is an open market trading                    • Revisions to 30 TAC Section
                                                      process. Each of the applications with                    program designed to promote creative                   101.304;
                                                      the extended lifetime will be processed                   and innovative emission strategies. We                   • Revisions to 30 TAC Section
                                                      by the TCEQ in accordance with the                        believe that emission reduction                        101.306;
                                                      proposed regulations; the TCEQ will                       strategies for the shutdown of mobile                    • Revisions to 30 TAC Section
                                                      apply the overall discount to the area or                 sources is consistent with the intent of               101.370;
                                                      mobile source inventories and apply the                   the EIP because these strategies could                   • Revisions to 30 TAC Section
                                                      adjustment factors to address                             result in a benefit to the specific airshed            101.372;
                                                      uncertainty in the emission estimations                   and promote and incentivize mobile                       • Revisions to 30 TAC Section
                                                      and unanticipated activity shifting. The                  source reductions. The emission                        101.373;
                                                      TCEQ also has existing SIP-authority at                   adjustment factor of 15% proposed by                     • Revisions to 30 TAC Section
                                                      30 TAC Section 101.302(g), proposed to                    the TCEQ will address any uncertainties                101.374; and
                                                      be renumbered as 101.302(i), to require                   associated with the generation of                        • Revisions to 30 TAC Section
                                                      recordkeeping beyond the nominal 5                        MDERCs from shutdowns or concerns                      101.376.
                                                      year lifetime of the EC. In its preamble                                                                           The EPA is proposing this action in
                                                                                                                about activity shifting, further ensuring
                                                      to the proposed state rule, the TCEQ                                                                             parallel with the state’s rulemaking
                                                                                                                that the reduction strategies generate
                                                      interprets this existing SIP-authority to                                                                        process. We cannot take a final action
                                                                                                                real, enforceable and surplus
                                                      require recordkeeping for the entirety of                                                                        until the state completes its rulemaking
                                                                                                                reductions.
                                                      the extended EC lifetime and states this                                                                         process, adopts its final regulations, and
                                                      requirement would be annotated in the                     F. Analysis Under Section 110(l) of the                submits these final adopted regulations
                                                      federally enforceable certification                       CAA                                                    as a revision to the Texas SIP. If during
                                                      paperwork required by the TCEQ                                                                                   the response to comments process, the
                                                                                                                   Our analysis indicates that the March               state rule is changed significantly from
                                                      executive director; thereby ensuring that                 8, 2017 regulations proposed for
                                                      the recordkeeping for the ECs with the                                                                           the proposed rule and the rule upon
                                                                                                                adoption by TCEQ have been developed                   which the EPA proposed, the EPA may
                                                      extended lifetime continues to satisfy                    in accordance with the CAA and
                                                      the CAA and the Texas SIP.4 The                                                                                  have to withdraw our initial proposed
                                                                                                                submitted on March 10, 2017 with a                     rule and repropose based on the final
                                                      proposed limited exceptions to the EC                     request for parallel processing. The
                                                      application deadline and credit                                                                                  SIP submittal.
                                                                                                                Texas EC and DEC programs are SIP-
                                                      lifetimes at 30 TAC Sections 101.303(d)                   approved programs that provide for                     IV. Incorporation by Reference
                                                      and 101.304(e) are approvable. We are                     compliance flexibility and generation
                                                      making a preliminary finding that the                                                                              In this action, we are proposing to
                                                                                                                and use of emission credits in the SIP-                include in a final rule regulatory text
                                                      TCEQ has appropriately defined the
                                                                                                                approved nonattainment New Source                      that includes incorporation by
                                                      scope of the EC program and has the
                                                                                                                Review permitting program. The                         reference. In accordance with the
                                                      authority to require recordkeeping for
                                                                                                                proposed revisions to the EC and DEC                   requirements of 1 CFR 51.5, we are
                                                      the life of the generated ECs to ensure
                                                                                                                programs further clarify and update the                proposing to incorporate by reference
                                                      compliance with the CAA and the Texas
                                                                                                                existing programs specific to the                      revisions to the Texas regulations as
                                                      SIP.
                                                                                                                generation and use of emission                         described in the Proposed Action
                                                      E. Clarification of the DEC Program To                    reductions from area and mobile                        section above. We have made, and will
                                                      Provide for the Generation of MDERCs                      sources. These submitted proposed                      continue to make, these documents
                                                      From Shutdowns                                            revisions do not change the                            generally available electronically
                                                        The TCEQ is proposing to clarify the                    fundamental premise or structure of the                through www.regulations.gov and/or in
                                                      existing SIP-approved language for                        approved programs. Therefore, we find                  hard copy at the EPA Region 6 office.
                                                      MDERC generation at 30 TAC Section                        that the proposed revisions to the EC
                                                                                                                and DEC programs will not interfere                    V. Statutory and Executive Order
                                                      101.374(c)(1) to explicitly provide for
                                                                                                                with attainment, reasonable further                    Reviews
                                                      the generation of MDERCs from
                                                      shutdowns, including permanent                            progress or any other applicable                         Under the CAA, the Administrator is
                                                      shutdowns and temporary curtailments                      requirements of the Act.                               required to approve a SIP submission
                                                      of activity from a mobile source. The                     III. Proposed Action                                   that complies with the provisions of the
                                                      TCEQ must still review each MDERC                                                                                Act and applicable Federal regulations.
                                                      generated from a shutdown to determine                       The EPA has made the preliminary                    42 U.S.C. 7410(k); 40 CFR 52.02(a).
                                                      whether the reduction is real,                            determination that the March 10, 2017,                 Thus, in reviewing SIP submissions, the
                                                      quantifiable, surplus and enforceable                     proposed revisions to the Texas SIP and                EPA’s role is to approve state choices,
                                                                                                                request for parallel processing are in                 provided that they meet the criteria of
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                                                      before certifying the reduction,
                                                      consistent with the Texas SIP and the                     accordance with the CAA and                            the CAA. Accordingly, this action
                                                      CAA.                                                      consistent with the CAA and the EPA’s                  merely proposes to approve state law as
                                                        The EPA is proposing to approve the                     policy and guidance on emissions                       meeting Federal requirements and does
                                                      clarification of the MDERC generation                     trading. Therefore, under section 110 of               not impose additional requirements
                                                      language to provide for generation of                     the Act, the EPA proposes to approve                   beyond those imposed by state law. For
                                                      credits from mobile source shutdowns.                     the following revisions to the Texas SIP               that reason, this action:
                                                      Sources have traditionally not availed                    that were proposed for adoption on                       • Is not a ‘‘significant regulatory
                                                                                                                March 8, 2017 and submitted for                        action’’ subject to review by the Office
                                                        4 See   42 TexReg 1340, March 24, 2017.                 parallel processing on March 10, 2017:                 of Management and Budget under


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                                                      26638                    Federal Register / Vol. 82, No. 109 / Thursday, June 8, 2017 / Proposed Rules

                                                      Executive Orders 12866 (58 FR 51735,                    ENVIRONMENTAL PROTECTION                               FOR FURTHER INFORMATION CONTACT:    Jeff
                                                      October 4, 1993) and 13563 (76 FR 3821,                 AGENCY                                                 Hunt, Air Planning Unit, Office of Air
                                                      January 21, 2011);                                                                                             and Waste (OAW–150), Environmental
                                                         • Does not impose an information                     40 CFR Part 52                                         Protection Agency, Region 10, 1200
                                                      collection burden under the provisions                  [EPA–R10–OAR–2017–0193; FRL–9963–61–                   Sixth Ave., Suite 900, Seattle, WA
                                                      of the Paperwork Reduction Act (44                      Region 10]                                             98101; telephone number: (206) 553–
                                                      U.S.C. 3501 et seq.);                                                                                          0256; email address: hunt.jeff@epa.gov.
                                                         • Is certified as not having a                       Attainment Date Extensions for the                     SUPPLEMENTARY INFORMATION:
                                                      significant economic impact on a                        Logan, Utah-Idaho 24-Hour Fine
                                                                                                              Particulate Matter Nonattainment Area                  I. Background
                                                      substantial number of small entities
                                                      under the Regulatory Flexibility Act (5                                                                           We have provided a full explanation
                                                                                                              AGENCY:  Environmental Protection                      of this proposed action in a companion
                                                      U.S.C. 601 et seq.);                                    Agency (EPA).
                                                         • Does not contain any unfunded                                                                             proposal for the Utah portion of the
                                                                                                              ACTION: Proposed rule.                                 Logan, UT-ID nonattainment area under
                                                      mandate or significantly or uniquely
                                                      affect small governments, as described                  SUMMARY:    The Environmental Protection               docket number EPA–R08–OAR–2017–
                                                      in the Unfunded Mandates Reform Act                     Agency (EPA) is proposing to grant two,                0216. Specifically, in section II.
                                                      of 1995 (Pub. L. 104–4);                                one-year extensions to the Moderate                    Background and III. Basis for EPA’s
                                                         • Does not have Federalism                           attainment date for the 2006 24-hour                   Proposed Action, we provide an
                                                      implications as specified in Executive                  fine particulate matter (PM2.5) Logan,                 explanation of the CAA requirements, a
                                                      Order 13132 (64 FR 43255, August 10,                    Utah (UT)-Idaho (ID) nonattainment                     detailed analysis of the air quality
                                                      1999);                                                  area. This action is based on the EPA’s                monitoring data, and the EPA’s reasons
                                                         • Is not an economically significant                 evaluation of air quality monitoring data              for proposing to grant two, one-year
                                                      regulatory action based on health or                    and extension requests submitted by the                extensions to the Moderate attainment
                                                      safety risks subject to Executive Order                 State of Utah on May 2, 2017, and the                  date for the Logan, UT-ID nonattainment
                                                      13045 (62 FR 19885, April 23, 1997);                    State of Idaho on December 15, 2015,                   area as a whole. That background and
                                                                                                                                                                     analysis applies equally to both the
                                                         • Is not a significant regulatory action             February 26, 2016, and April 25, 2017.
                                                                                                              The EPA is proposing to grant a one-                   Utah and Idaho portions of the Logan,
                                                      subject to Executive Order 13211 (66 FR
                                                                                                              year extension of the Moderate                         UT-ID nonattainment area, so the
                                                      28355, May 22, 2001);
                                                                                                                                                                     information in the companion proposal
                                                         • Is not subject to requirements of                  attainment date from December 31, 2015
                                                                                                              to December 31, 2016, and is proposing                 is incorporated by reference into this
                                                      section 12(d) of the National
                                                                                                              to grant a second one-year extension of                proposal and will not be restated here.
                                                      Technology Transfer and Advancement
                                                      Act of 1995 (15 U.S.C. 272 note) because                the Moderate attainment date from                      II. Proposed Action
                                                      application of those requirements would                 December 31, 2016 to December 31,                         In response to requests from the
                                                      be inconsistent with the CAA; and                       2017, in accordance with section 188(d)                Governor of Utah on May 2, 2017, and
                                                         • Does not provide EPA with the                      of the Clean Air Act (CAA).                            from the Idaho Department of
                                                      discretionary authority to address, as                  DATES: Written comments must be                        Environmental Quality (IDEQ) on
                                                      appropriate, disproportionate human                     received on or before July 10, 2017.                   December 15, 2015, February 26, 2016,
                                                      health or environmental effects, using                  ADDRESSES: Submit your comments,                       and April 25, 2017, the EPA is
                                                      practicable and legally permissible                     identified by Docket ID No. EPA–R10–                   proposing to grant two, one-year
                                                      methods, under Executive Order 12898                    OAR–2017–0193 at https://                              attainment date extensions to the
                                                      (59 FR 7629, February 16, 1994).                        www.regulations.gov. Follow the online                 Moderate attainment date for the 2006
                                                         In addition, the SIP is not approved                 instructions for submitting comments.                  24-hour PM2.5 National Ambient Air
                                                      to apply on any Indian reservation land                 Once submitted, comments cannot be                     Quality Standards (NAAQS) for the
                                                      or in any other area where EPA or an                    edited or removed from Regulations.gov.                Logan, UT-ID nonattainment area. If
                                                      Indian tribe has demonstrated that a                    The EPA may publish any comment                        finalized, this action would extend the
                                                      tribe has jurisdiction. In those areas of               received to the public docket. Do not                  Moderate area attainment date for the
                                                      Indian country, the proposed rule does                  submit electronically any information                  Logan, UT-ID nonattainment area from
                                                      not have tribal implications and will not               you consider to be Confidential                        December 31, 2015 to December 31,
                                                      impose substantial direct costs on tribal               Business Information (CBI) or other                    2016, and from December 31, 2016 to
                                                      governments or preempt tribal law as                    information, the disclosure of which is                December 31, 2017. The proposed
                                                      specified by Executive Order 13175 (65                  restricted by statute. Multimedia                      action to extend the Moderate
                                                      FR 67249, November 9, 2000).                            submissions (audio, video, etc.) must be               attainment date for this nonattainment
                                                                                                              accompanied by a written comment.                      area is based on both states’ compliance
                                                      List of Subjects in 40 CFR Part 52                      The written comment is considered the                  with the requirements for the applicable
                                                        Environmental protection, Air                         official comment and should include                    State Implementation Plan (SIP) for the
                                                      pollution control, Carbon monoxide,                     discussion of all points you wish to                   area and on the 2015 and 2016 PM2.5
                                                      Incorporation by reference,                             make. The EPA will generally not                       98th percentile data from the Logan
                                                      Intergovernmental relations, Lead,                      consider comments or comment                           (Utah), Smithfield (Utah), and Franklin
                                                      Nitrogen dioxide, Ozone, Reporting and                  contents located outside of the primary                (Idaho) monitoring sites in the Logan,
asabaliauskas on DSKBBXCHB2PROD with PROPOSALS




                                                      recordkeeping requirements, Sulfur                      submission (i.e., on the web, cloud, or                UT-ID nonattainment area. If we finalize
                                                      oxides, Volatile organic compounds.                     other file sharing system). For                        this proposal, consistent with CAA
                                                         Authority: 42 U.S.C. 7401 et seq.                    additional submission methods, the full                section 188(d) and 40 CFR 51.1005(a)(1),
                                                                                                              EPA public comment policy,                             the nonattainment area will remain a
                                                        Dated: May 24, 2017.                                  information about CBI or multimedia                    Moderate PM2.5 nonattainment area,
                                                      Samuel Coleman,                                         submissions, and general guidance on                   with a Moderate area attainment date of
                                                      Acting Regional Administrator, Region 6.                making effective comments, please visit                December 31, 2017. Additionally, the
                                                      [FR Doc. 2017–11906 Filed 6–7–17; 8:45 am]              https://www.epa.gov/dockets/                           states will not have to submit the
                                                      BILLING CODE 6560–50–P                                  commenting-epa-dockets.                                additional planning requirements that


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Document Created: 2018-11-14 10:06:15
Document Modified: 2018-11-14 10:06:15
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesWritten comments must be received on or before July 10, 2017.
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 26634 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Carbon Monoxide; Incorporation by Reference; Intergovernmental Relations; Lead; Nitrogen Dioxide; Ozone; Reporting and Recordkeeping Requirements; Sulfur Oxides and Volatile Organic Compounds

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