82_FR_27565 82 FR 27451 - Approval of California Air Plan Revisions, South Coast Air Quality Management District

82 FR 27451 - Approval of California Air Plan Revisions, South Coast Air Quality Management District

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 82, Issue 114 (June 15, 2017)

Page Range27451-27456
FR Document2017-12469

The Environmental Protection Agency (EPA) is proposing to approve revisions to the South Coast Air Quality Management District (SCAQMD or District) portion of the California State Implementation Plan (SIP). These revisions concern the District's demonstration regarding Reasonably Available Control Technology (RACT) requirements for the 2008 8-hour ozone National Ambient Air Quality Standard (NAAQS) in the South Coast Air Basin and Coachella Valley ozone nonattainment areas. The EPA had previously proposed to partially approve and partially disapprove SCAQMD's RACT SIP demonstration. However, since publication of the proposed rule, SCAQMD has addressed the identified deficiency that was the basis for the proposed partial disapproval by completing additional analysis and by submitting the analysis to the EPA as a supplement to the RACT demonstration. Because the supplemental analysis adequately addresses the deficiency, the EPA is withdrawing the previous proposed action and is now proposing full approval of SCAQMD's RACT SIP demonstration for the 2008 ozone NAAQS, as recently supplemented. The action proposed herein is based on a public draft version of the SCAQMD RACT supplement, and the EPA will not take final action until submittal of the final version of the SCAQMD RACT supplement as a revision of the California SIP.

Federal Register, Volume 82 Issue 114 (Thursday, June 15, 2017)
[Federal Register Volume 82, Number 114 (Thursday, June 15, 2017)]
[Proposed Rules]
[Pages 27451-27456]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-12469]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0215; FRL-9963-78-Region 9]


Approval of California Air Plan Revisions, South Coast Air 
Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve revisions to the South Coast Air Quality Management District 
(SCAQMD or District) portion of the California State Implementation 
Plan (SIP). These revisions concern the District's demonstration 
regarding Reasonably Available Control Technology (RACT) requirements 
for the 2008 8-hour ozone National Ambient Air Quality Standard (NAAQS) 
in the South Coast Air Basin and Coachella Valley ozone nonattainment 
areas. The EPA had previously proposed to partially approve and 
partially disapprove SCAQMD's RACT SIP demonstration. However, since 
publication of the proposed rule, SCAQMD has addressed the identified 
deficiency that was the basis for the proposed partial disapproval by 
completing additional analysis and by submitting the analysis to the 
EPA as a supplement to the RACT demonstration. Because the supplemental 
analysis adequately addresses the deficiency, the EPA is withdrawing 
the previous proposed action and is now proposing full approval of 
SCAQMD's RACT SIP demonstration for the 2008 ozone NAAQS, as recently 
supplemented. The action proposed herein is based on a public draft 
version of the SCAQMD RACT supplement, and the EPA will not take final 
action until submittal of the final version of the SCAQMD RACT 
supplement as a revision of the California SIP.

DATES:  Any comments must arrive by July 17, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2016-0215 at https://www.regulations.gov/, or via email to Andrew 
Steckel, Rulemaking Office Chief at [email protected]. For 
comments submitted at Regulations.gov, follow the online instructions 
for submitting comments. Once submitted, comments cannot be removed or 
edited from Regulations.gov. For either manner of submission, the EPA 
may publish any comment received to its public docket. Do not submit 
electronically any information you consider to be Confidential Business 
Information (CBI) or other information whose disclosure is restricted 
by statute. Multimedia submissions (audio, video, etc.) must be 
accompanied by a written comment. The written comment is considered the 
official comment and should include discussion of all points you wish 
to make. The EPA will generally not consider comments or comment 
contents located outside of the primary submission (i.e., on the Web, 
cloud, or other file sharing system). For additional submission 
methods, please contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section. For the full EPA public comment policy, 
information about CBI or multimedia submissions, and general guidance 
on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Stanley Tong, EPA Region IX, (415) 
947-4122, [email protected].

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

Table of Contents

I. The State's Submittal
    A. What documents did the State submit?
    B. Are there other versions of these documents?
    C. What is the purpose of the submitted documents?
II. The EPA's Evaluation and Proposed Action
    A. How is the EPA evaluating the submitted documents?
    B. Do the documents meet the evaluation criteria?
    C. Public Comment and Proposed Action
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

I. The State's Submittal

A. What documents did the State submit?

    On June 6, 2014, the SCAQMD adopted the ``2016 AQMP) Reasonably 
Available Control Technology (RACT) Demonstration'' (``2016 AQMP RACT 
SIP''), and on July 18, 2014, the California Air Resources Board (CARB) 
submitted it to the EPA for approval as a revision to the California 
SIP. On January 18, 2015, the submittal of the 2016 AQMP RACT SIP was 
deemed complete by operation of law.
    On May 22, 2017, CARB submitted the District's public draft version 
of the ``Supplemental RACM/RACT Analysis for the NOX RECLAIM 
Program'' (``2017 RACT Supplement'') along with a request for parallel 
processing.\1\ The District prepared the 2017 RACT Supplement to 
address a deficiency that the EPA had identified in the 2016 AQMP RACT 
SIP and that was the basis for the EPA's proposed partial disapproval 
of that submittal published on November 3, 2016 (81 FR 76547). The 2017 
RACT Supplement includes additional emissions analysis, two negative 
declarations, and certain conditions from permits for two specific 
stationary sources located in Coachella Valley. As noted in footnote 1 
of this document, under our parallel processing procedure, the EPA 
proposes action on a public draft version of a SIP revision but will 
take final action only after the final version is adopted and submitted 
to the EPA for approval. In this instance, we are proposing action 
based on the public draft version of the 2017 RACT Supplement submitted 
by CARB on May 22, 2017 and will not take final action until the final 
version of the 2017 RACT

[[Page 27452]]

Supplement is adopted and submitted to the EPA. CARB's May 22, 2017 
letter indicates that the District Board is scheduled to consider 
approval of the 2017 RACT Supplement and associated documents on July 
7, 2017, and if it is approved, CARB will submit the final package to 
the EPA.
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    \1\ Under the EPA's ``parallel processing'' procedure, the EPA 
proposes rulemaking action concurrently with the state's proposed 
rulemaking. If the state's proposed rule is changed, the EPA will 
evaluate that subsequent change and may publish another notice of 
proposed rulemaking. If no significant change is made, the EPA will 
publish a final rulemaking on the rule after responding to any 
submitted comments. Final rulemaking action by the EPA will occur 
only after the rule has been fully adopted by California and 
submitted formally to the EPA for incorporation into the SIP. See 40 
CFR part 51, appendix V.
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B. Are there other versions of these documents?

    There are no previous versions of the documents described above in 
the SCAQMD portion of the California SIP for the 2008 8-hour ozone 
NAAQS.

C. What is the purpose of the submitted documents?

    Volatile Organic Compounds (VOC) and nitrogen oxides 
(NOX) together produce ground-level ozone, smog and 
particulate matter (PM), which harm human health and the environment. 
Section 110(a) of the Clean Air Act (CAA or ``Act'') requires states to 
submit regulations that control VOC and NOX emissions. CAA 
sections 182(b)(2) and (f) require that SIPs for 1-hour ozone 
nonattainment areas classified as moderate or above implement RACT for 
any source covered by a Control Techniques Guidelines \2\ (CTG) 
document and for any major source of VOC or NOX. The EPA's 
implementing regulations for the 2008 ozone NAAQS extend the same RACT 
requirement to areas classified as moderate or above for the 2008 ozone 
NAAQS. See 40 CFR 51.1112.
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    \2\ CTGs are used to help define VOC RACT.
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    The SCAQMD is subject to the RACT requirement as it is authorized 
under state law to regulate stationary sources in the South Coast Air 
Basin (``South Coast''), which is classified as an extreme 
nonattainment area, and in the Coachella Valley portion of Riverside 
County (``Coachella Valley''), which is classified as a severe-15 
nonattainment area for the 2008 8-hour ozone NAAQS (40 CFR 81.305); 77 
FR 30088 at 30101 and 30103 (May 21, 2012). Therefore, the SCAQMD must, 
at a minimum, adopt RACT-level controls for all sources covered by a 
CTG document and for all major non-CTG sources of VOC or NOX 
within the two nonattainment areas. Any stationary source that emits or 
has the potential to emit at least 10 tons per year of VOC or 
NOX is a major stationary source in an extreme ozone 
nonattainment area (CAA section 182(e) and (f)), and any stationary 
source that emits or has the potential to emit at least 25 tons per 
year of VOC or NOX is a major stationary source in a severe 
ozone nonattainment area (CAA section 182(d) and (f)).
    Section III.D of the preamble to the EPA's final rule to implement 
the 2008 ozone NAAQS (80 FR 12264, March 6, 2015) discusses RACT 
requirements. It states, in part, that RACT SIPs must contain adopted 
RACT regulations, certifications where appropriate that existing 
provisions are RACT, and/or negative declarations that no sources in 
the nonattainment area are covered by a specific CTG source category, 
and that states must submit appropriate supporting information for 
their RACT submissions as described in the EPA's implementation rule 
for the 1997 ozone NAAQS. See id., at 12278; 70 FR 71612, at 71652 
(November 29, 2005).
    The submitted documents provide SCAQMD's analyses of its compliance 
with the CAA section 182 RACT requirements for the 2008 8-hour ozone 
NAAQS. CARB also intends the 2017 RACT Supplement to address the EPA's 
April 14, 2016 (81 FR 22025) disapproval of the reasonably available 
control measures/RACT (RACM/RACT) demonstration for the South Coast for 
the 2006 fine PM (PM2.5) NAAQS. Today's rulemaking addresses 
the RACT requirement for the 2008 ozone standard, not the RACM/RACT 
requirement for the PM2.5 NAAQS. The EPA will address the 
latter requirement in a separate rulemaking. The EPA's technical 
support documents (TSDs) evaluating the 2016 AQMP RACT SIP and the 2017 
RACT Supplement have more information about the District's submissions 
and the EPA's evaluation thereof.

II. The EPA's Evaluation and Proposed Action

A. How is the EPA evaluating submitted documents?

    SIP rules must be enforceable (see CAA section 110(a)(2)), must not 
interfere with applicable requirements concerning attainment and 
reasonable further progress or other CAA requirements (see CAA section 
110(l)), and must not modify certain SIP control requirements in 
nonattainment areas without ensuring equivalent or greater emissions 
reductions (see CAA section 193). Generally, SIP rules must require 
RACT for each category of sources covered by a CTG document as well as 
each major source of VOC or NOX in ozone nonattainment areas 
classified as moderate or above (see CAA section 182(b)(2) and (f), and 
40 CFR 51.1112). The SCAQMD regulates an extreme ozone nonattainment 
area (i.e., the South Coast Air Basin) and a severe ozone nonattainment 
area (i.e., Coachella Valley) (see 40 CFR 81.305), so the District's 
rules must implement RACT.
    Guidance and policy documents that we use to evaluate 
enforceability, revision/relaxation and rule stringency requirements 
for the applicable criteria pollutants include the following:

1. ``State Implementation Plans; General Preamble for the 
Implementation of Title I of the Clean Air Act Amendments of 1990,'' 
57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992);
2. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and 
Deviations,'' EPA, May 25, 1988 (the Bluebook, revised January 11, 
1990);
3. ``Guidance Document for Correcting Common VOC & Other Rule 
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook);
4. ``State Implementation Plans; Nitrogen Oxides Supplement to the 
General Preamble; Clean Air Act Amendments of 1990 Implementation of 
Title I; Proposed Rule,'' (the NOX Supplement), 57 FR 
55620, November 25, 1992;
5. Memorandum from William T. Harnett to Regional Air Division 
Directors, (May 18, 2006), ``RACT Qs & As--Reasonably Available 
Control Technology (RACT) Questions and Answers'';
6. ``Implementation of the 2008 National Ambient Air Quality 
Standards for Ozone: State Implementation Plan Requirements'' (80 FR 
12264; March 6, 2015); and
7. ``Final Rule to Implement the 8-hour Ozone National Ambient Air 
Quality Standard -Phase 2'' (70 FR 71612; November 29, 2005).

B. Do the documents meet the evaluation criteria?

    The 2016 AQMP RACT SIP and 2017 RACT Supplement build on the 
District's previous RACT SIP demonstrations: The 2006 RACT SIP (73 FR 
76947, December 18, 2008), the 2007 AQMP (77 FR 12674, March 1, 2012) 
and the 2012 AQMP (79 FR 52526, September 3, 2014). The 2016 AQMP RACT 
SIP concludes, after a review and evaluation of more than 30 rules 
recently developed by other ozone nonattainment air districts, that 
SCAQMD's current rules meet the EPA's criteria for RACT acceptability 
and inclusion in the SIP for the 2008 8-hour ozone NAAQS. The 2017 RACT 
Supplement adds to the 2016 AQMP RACT SIP by including two negative 
declarations, and by including certain permit conditions for two major 
NOX sources in Coachella Valley, and by providing a 
demonstration for how District rules meet the RACT requirement for 
major NOX sources in the South Coast.

[[Page 27453]]

1. CTG Source Categories--South Coast and Coachella Valley
    With regards to CTG source categories, based on its research of the 
District's permit databases and telephone directories for sources in 
the District for the 2007 AQMP, the 2012 AQMP, and the 2016 AQMP RACT 
SIP, the SCAQMD concluded that all identified sources subject to a CTG 
are subject to District rules that establish control requirements 
meeting or exceeding RACT. Because District rules apply in both the 
South Coast and Coachella Valley, the District's conclusion in this 
regard extends to both nonattainment areas.
    Where there are no existing sources covered by a particular CTG 
document, states may, in lieu of adopting RACT requirements for those 
sources, adopt negative declarations certifying that there are no such 
sources in the relevant nonattainment area. The SCAQMD did not include 
any negative declarations in the 2016 AQMP RACT SIP; however, 
subsequent to its 2016 AQMP RACT SIP submittal, the EPA had several 
discussions with the SCAQMD and concluded there may be two CTG 
categories where the District has no sources applicable to the CTGs: 
(1) Surface Coating Operations at Shipbuilding and Ship Repair 
Facilities CTG; and (2) the paper coating portion of the 2007 Paper, 
Film, and Foil Coatings CTG. Based on further investigation, the 
District has agreed that negative declarations for the two CTG 
categories are warranted and has included them in the 2017 RACT 
Supplement.\3\
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    \3\ SCAQMD, ``Negative Declaration for Control Techniques 
Guidelines of Surface Coating Operations at Shipbuilding and Ship 
Repair Facilities, and Paper, Film, and Foil Coatings,'' May 2017, 
included at the back of the 2017 RACT Supplement.
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    Based on our review and evaluation of the documentation provided by 
the SCAQMD in the 2016 AQMP RACT SIP (and earlier plans) and in the 
2017 RACT Supplement, we agree that existing District rules approved in 
the SIP meet or are more stringent than the corresponding CTG limits 
and applicability thresholds for each category of VOC sources covered 
by a CTG document, other than the two CTG documents discussed above. As 
discussed in our TSD, we conclude that existing District rules require 
the implementation of RACT for each category of VOC sources covered by 
a CTG document (other than the two discussed above) located in the 
South Coast and Coachella Valley. For the Surface Coating Operations at 
Shipbuilding and Ship Repair Facilities CTG and the paper coating 
portion of the 2007 Paper, Film, and Foil Coatings CTG, we have 
reviewed the District's evaluation of its sources as described in the 
2017 RACT Supplement and concur with the District's findings. As such, 
we propose approval of the District's two negative declarations 
included in the 2017 RACT Supplement.
2. Major Stationary Sources of VOC or NOX Emissions (Other 
than RECLAIM Facilities)--South Coast and Coachella Valley
    With respect to major stationary sources of VOC or NOX 
emissions, the District provided supplemental information identifying 
21 new major Title V sources since its 2006 RACT SIP certification and 
provided a list of equipment at these facilities that emit greater than 
5 tons per year. The District concluded that all the identified 
equipment were covered by command-and-control VOC or NOX 
rules that implement RACT. The District's efforts to identify all new 
major sources appears to be thorough, and we agree that the District's 
command-and-control VOC and NOX rules approved in the SIP 
require implementation of RACT for all major non-CTG VOC and 
NOX sources in the South Coast and Coachella Valley to which 
those rules apply. Generally, major NOX sources in the South 
Coast and two major NOX sources in Coachella Valley are not 
subject to the District's command-and-control rules, but are subject to 
a set of rules establishing a cap-and-trade program.\4\ Our evaluation 
of these sources for compliance with the RACT requirement is covered in 
the following sections of this document.
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    \4\ Certain sources such as fire-fighting facilities, police 
facilities, and public transit remain covered under SCAQMD's 
command-and-control rules and are exempted from the cap-and-trade 
program. See Rule 2001.
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3. RECLAIM Facilities in the South Coast
    Within the South Coast, major NOX sources are included 
in SCAQMD's Regulation XX (``Regional Clean Air Incentives Market 
(RECLAIM)'') program. The District adopted the RECLAIM program in 1993 
to reduce emissions from the largest stationary sources of 
NOX and sulfur oxides (SOX) emissions through a 
market-based trading program that establishes annual declining 
NOX and SOX allocations (also called ``facility 
caps'') and allows covered facilities to comply with their facility 
caps by installing pollution control equipment, changing operations, or 
purchasing RECLAIM trading credits (RTCs) from the RECLAIM market. 
Section 40440 of the California Health and Safety Code (CH&SC) requires 
the District to monitor advances in best available retrofit control 
technology (BARCT) and periodically to reassess the overall facility 
caps to ensure that the facility caps are equivalent, in the aggregate, 
to BARCT emission levels imposed on affected sources.\5\ Facilities 
subject to RECLAIM are exempted from a number of District command-and-
control (also referred to as ``prohibitory'') rules that otherwise 
apply to sources of NOX and SOX emissions in the 
South Coast.\6\ With certain exceptions, facilities located outside of 
the South Coast but within SCAQMD jurisdiction (e.g., facilities in 
Coachella Valley) are not included in the RECLAIM program. As of the 
2015 compliance year, the most recent compliance year fully audited, 
there are approximately 268 facilities in the RECLAIM NOX 
program.\7\
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    \5\ BARCT is defined as ``an emission limitation that is based 
on the maximum degree of reduction achievable taking into account 
environmental, energy, and economic impacts by each class or 
category of source.'' CH&SC section 40406. For the purposes of 
comparison, the EPA defines RACT as the lowest emission limitation 
that a particular source is capable of meeting by the application of 
control technology that is reasonably available considering 
technological and economic feasibility. 44 FR 53762 (September 17, 
1979). As such, we generally find that BARCT level of control meets 
or exceeds RACT level of control.
    \6\ See District Rule 2001 (``Applicability''), as amended May 
6, 2005. Exemptions from RECLAIM, such as the exemption for certain 
facilities located in Coachella Valley, are listed in Rule 2001(i).
    \7\ See page 4 of the 2017 RACT Supplement.
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    Under longstanding EPA interpretation of the CAA, a market-based 
cap and trade program may satisfy RACT requirements by ensuring that 
the level of emission reductions resulting from implementation of the 
program will be equal, in the aggregate, to those reductions expected 
from the direct application of RACT on all affected sources within the 
nonattainment area.\8\ The EPA approved the RECLAIM program into the 
California SIP in June 1998 based in part on a conclusion that the 
NOX emission caps in the program satisfied the RACT 
requirements of CAA section 182(b)(2) and (f) for covered 
NOX emission sources in the aggregate.\9\ In 2005 and 2010, 
the District adopted revisions to the RECLAIM program, which the EPA 
approved in 2006 and 2011, respectively, based in part on conclusions 
that the revisions continued

[[Page 27454]]

to satisfy RACT requirements.\10\ We refer to the current 
NOX RECLAIM program as approved into the SIP as the ``2010 
RECLAIM program.'' \11\
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    \8\ 59 FR 16690 (April 7, 1994) and the EPA, ``Improving Air 
Quality with Economic Incentive Programs,'' EPA-452/R-01-001 
(January 2001), at Section 16.7 and 80 FR 12264, 12279 (March 6, 
2015).
    \9\ 61 FR 57834 (November 8, 1996) and 63 FR 32621 (June 15, 
1998).
    \10\ 71 FR 51120 (August 29, 2006) and 76 FR 50128 (August 12, 
2011).
    \11\ The RECLAIM program is codified by the District in 
Regulation XX, which includes a number of individual rules, such as 
Rule 2001 (``Applicability'') and Rule 2002 (``Allocations for 
Oxides of Nitrogen (NOX) and Oxides of Sulfur 
(SOX)'' and many others. Herein, we refer to the ``2010 
RECLAIM program,'' because the most recent SIP-approved RECLAIM rule 
amendments were adopted by the District on November 5, 2010. The 
2010 amendments only affected certain sections of Rule 2002 
pertaining to SOX emissions, and thus, the ``2010 RECLAIM 
program'' reflects other amendments by the District that we approved 
prior to that time and that were unaffected by the 2010 amendments. 
For instance, with respect to NOX allocations, the most 
recent SIP-approved amendments that are part of the ``2010 RECLAIM 
program'' were adopted by the District on January 7, 2005.
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    The 2016 AQMP RACT SIP relies on the 2010 RECLAIM program to 
satisfy the RACT requirements for major NOX sources in the 
South Coast. With respect to such sources, we initially concluded, as 
described in our November 3, 2016 proposed rule, 81 FR 76547, at 76549, 
that the 2016 AQMP RACT SIP had failed to demonstrate that the 2010 
RECLAIM program had achieved NOX emissions reductions equal, 
in the aggregate, to those reductions expected from the direct 
application of RACT on all major NOX sources in the South 
Coast. We based our initial conclusion on information contained in 
SCAQMD's December 2015 Draft Final Staff Report (``2015 staff report'') 
revising Regulation XX that indicated that further reductions in the 
NOX RECLAIM emissions cap were needed to achieve BARCT.\12\ 
Given that BARCT level of control by definition meets or exceeds RACT 
level of control, we could have safely concluded that the 2010 RECLAIM 
program meets RACT level of control if it had been demonstrated to 
meet, in the aggregate, BARCT level of control. In light of the 
information in the 2015 staff report, however, there was evidence that 
the RECLAIM program had not achieved BARCT level of control, and thus 
we had inadequate basis to conclude that the 2010 RECLAIM program had 
achieved RACT level of control. The use of the BARCT level of control, 
rather than RACT, as the criterion for approval or disapproval was 
necessary for the purposes of the November 3, 2016 proposed rule 
because no specific demonstration of RECLAIM as meeting the RACT 
requirement had been submitted as part of the 2016 AQMP RACT SIP.
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    \12\ Draft Final Staff Report, Proposed Amendments to Regulation 
XX Regional Clean Air Initiatives Market (RECLAIM) NOX 
RECLAIM, December 4, 2015 http://www.aqmd.gov/docs/default-source/Agendas/Governing-Board/2015/2015-dec4-030.pdf?sfvrsn=9.
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    In response to our November 3, 2016 proposed partial disapproval of 
the South Coast RACT demonstration, and also to respond to the EPA's 
April 14, 2016 disapproval of the South Coast RACM/RACT demonstration 
for the 2006 PM2.5 NAAQS, both of which were premised on the 
same deficient showing with respect to major NOX sources in 
the South Coast that are subject to RECLAIM, the District has provided, 
in the 2017 RACT Supplement, a specific demonstration of how the 2010 
RECLAIM program has achieved, in the aggregate, RACT level of control 
for major NOX sources in the South Coast. In the 2017 RACT 
Supplement, the District has also evaluated the amendments in the 
RECLAIM program adopted by the District in 2015 and 2016 for compliance 
with the RACT requirement.\13\
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    \13\ On March 17, 2017, CARB submitted amended RECLAIM rules 
reflecting revisions adopted by the District on December 4, 2015 
(significant revisions reducing total NOX RTC holdings by 
12 tpd by 2022), February 5, 2016 (minor revisions to certain 
definitions), and October 7, 2016 (new provisions intended to 
prevent the majority of facility shutdown credits from entering the 
market) to the EPA as a revision to the California SIP. The EPA has 
recently proposed to approve the amended rules. See 82 FR 25996 
(June 6, 2017).
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    When the NOX RECLAIM program was first adopted, RECLAIM 
facilities were issued NOX annual allocations that declined 
annually from 1993 until 2003 and remained constant after 2003. The 
ending RTC allocation (for all program sources) in 2003 was set at 34.2 
tons per day (tpd). The annual allocations reflected the levels of 
BARCT to be in place at the RECLAIM facilities, and were the result of 
a BARCT analysis conducted in 1993.
    As noted above, state law also requires the District to monitor 
advances in BARCT and to periodically reassess the overall facility 
caps to ensure that RECLAIM facilities achieve the same or greater 
emission reductions that would have occurred under a command-and-
control approach. In 2005, the District examined the RECLAIM program 
and found that additional reduction opportunities existed due to the 
advancement of control technology.
    As part of the 2005 NOX BARCT reassessment, the District 
examined the most stringent emission limits in other air pollution 
control district rules and other requirements for equipment categories 
in the RECLAIM program in an effort to determine the appropriate mass 
emission reductions to reflect BARCT. District staff also examined 
types of retrofit technologies that had been achieved in practice 
regardless of whether these controls are required in SIP approved 
rules. As a result, the District identified new BARCT levels for six 
source categories in the NOX RECLAIM program and established 
a new ending RTC allocation of 26.5 tpd, which represented the 
allowable programmatic emissions after BARCT implementation. The 
methodology for determining the ending RTC allocation relied on using 
actual emissions that are adjusted for growth and BARCT. Under amended 
rules adopted by the District in 2005, the facility annual allocations 
(in the aggregate) were reduced in annual increments from 34.2 tpd to 
26.5 tpd between 2007 and 2011.
    To demonstrate that the 2010 RECLAIM program (reflecting 2005 
NOX RECLAIM rule amendments) implemented RACT, the District 
re-examined the BARCT reevaluation that it conducted in 2005 and 
determined that, for certain source categories, the BARCT allocation 
level was essentially equivalent to RACT, but that, for certain other 
source categories, the BARCT allocation level was beyond RACT because 
there were no other rules in the District itself or any other 
California air district for these specific categories that were more 
stringent than the limits established under the original RECLAIM 
program in 1993 (and fully implemented by 2003). The District re-
calculated a hypothetical ending annual RTC allocation (of 30.9 tpd) 
reflecting RACT implementation (rather than BARCT) and determined that, 
based on audited actual NOX emissions in 2012, the 2010 
RECLAIM program achieved a 16% reduction in actual NOX 
emissions from RECLAIM sources from 2006 to 2012 whereas only a 9.6% 
reduction (i.e., 34.2 tpd down to 30.9 tpd) was necessary to meet the 
RACT requirement. On that basis, the District concludes, in the 2017 
RACT Supplement, that the 2010 RECLAIM program met the RACT requirement 
for major NOX sources in the South Coast.
    We have reviewed the District's evaluation of the 2010 RECLAIM 
program for compliance with the RACT requirement and find that the 
District's approach, assumptions, and calculation methods are 
reasonable. Based on the District's analysis, we conclude that the 
NOX RECLAIM program, as amended in 2005, provided for 
NOX reductions equivalent, in the aggregate, to those 
reductions expected from the direct application of RACT on all major 
NOX sources in the South Coast.
    However, the emissions limits that form the basis for the 
District's re-examination of the RECLAIM program as described above are 
predicated on the

[[Page 27455]]

2005 BARCT reevaluation of the program. To comply with the RACT 
requirement for the 2008 ozone standard, for which designations were 
promulgated in 2012, the RECLAIM program had to be re-evaluated post-
2012 for potential improvements in control technology since 2005. In 
2015, the District conducted such a reevaluation and amended the 
RECLAIM rules to establish a new ending RTC allocation of 14.5 tpd 
(reflecting BARCT implementation) to be achieved incrementally from 
2017 through 2022.
    In the 2017 RACT Supplement, the District also provides a 
demonstration of how the RECLAIM program, as amended in 2015, meets the 
RACT requirement in the aggregate. To do so, the District performed a 
similar type of analysis as that described above for the 2005 RECLAIM 
amendments to determine a hypothetical ending RTC allocation reflecting 
RACT implementation (rather than BARCT) of 14.8 tpd. Because the ending 
RTC allocation (adopted by the District in 2015 and implementing BARCT) 
of 14.5 tpd is less than (i.e., more stringent than) the hypothetical 
RTC allocation (implementing RACT) of 14.8 tpd, the District concludes 
that the program as amended in 2015 meets the RACT requirement.
    We have reviewed the District's approach, assumptions, and methods 
to the updated RECLAIM program and agree that, as amended in 2015, the 
RECLAIM program provides for emissions reductions equivalent, in the 
aggregate, to those reductions expected from the direct application of 
RACT on all major NOX sources in the South Coast and thereby 
meets the RACT requirement for such sources for the purposes of the 
2008 ozone standard.\14\
---------------------------------------------------------------------------

    \14\ While not required for our evaluation of the 2016 AQMP RACT 
SIP and 2017 RACT Supplement for compliance with the RACT 
requirement for the South Coast and Coachella Valley for the 2008 
ozone standard, we also take note of several recent developments 
that pertain to the RECLAIM program. On March 3, 2017, the District 
adopted the 2016 Air Quality Management Plan and in so doing 
directed staff to modify the 2016 AQMP NOX RECLAIM 
measure to achieve an additional 5 tpd NOX emission 
reduction as soon as feasible, and not later than 2025, to 
transition the RECLAIM program to a command-and-control regulatory 
structure requiring BARCT level controls as soon as practicable. See 
SCAQMD, Resolution No. 17-2 (``A Resolution of the South Coast Air 
Quality Management District (SCAQMD or District) Governing Board 
certifying the Final Program Environmental Impact Report (PEIR) for 
the 2016 Air Quality Management Plan (AQMP or Plan), and adopting 
the 2016 AQMP, which is to be submitted into the California State 
Implementation Plan (SIP)''), March 3, 2017, page 17.
---------------------------------------------------------------------------

    We also agree with the District that RECLAIM rule amendments in 
October 2016 help to ensure the success of the program in achieving 
BARCT-equivalent (and RACT-equivalent) reductions by preventing the 
majority of facility shutdown RTCs from entering the market and 
delaying the installation of pollution controls at other NOX 
RECLAIM facilities.
4. RECLAIM Facilities in Coachella Valley
    As noted above, unlike major NOX sources in the South 
Coast, major NOX sources in Coachella Valley are generally 
not eligible to participate in the RECLAIM program but rather are 
subject to the District's prohibitory rules.\15\ The RECLAIM rules, 
however, establish an exception for electric generating facilities in 
Coachella Valley that submit complete permit applications on or after 
January 1, 2001. Such facilities may elect to enter the RECLAIM 
program, and to date, two facilities in Coachella Valley have elected 
to enter the program.
---------------------------------------------------------------------------

    \15\ District Regulation XX (``Regional Clean Air Incentives 
Market (RECLAIM)'', Rule 2001 (``Applicability''), paragraph 
(i)(1)(I).
---------------------------------------------------------------------------

    In our November 3, 2016 proposed rule, we did not extend the 
deficiency we identified in the RACT demonstration for the South Coast 
to Coachella Valley because we found that the two RECLAIM facilities 
that are located there were both equipped with control technology that 
meets or exceeds RACT level of control.\16\ The basic premise for our 
proposed conclusion in this regard was that the RACT requirement was 
met through permit conditions requiring RACT level of control because 
such permit conditions are enforceable because they were issued under 
SIP-approved New Source Review (NSR) rules. However, our rationale was 
mistaken. Generally, NSR permit conditions alone are not sufficient to 
meet the RACT requirement even where the conditions require control 
technology that represent RACT level of control because permit 
conditions are subject to revision outside of the SIP revision process 
and because permits can expire whereas SIP limits must be permanent 
until revised or rescinded through a SIP revision. On the other hand, 
permit conditions that require RACT level of control at a given 
facility may suffice to meet the RACT requirement if they are submitted 
as a SIP revision and approved into the SIP.
---------------------------------------------------------------------------

    \16\ See footnote 8 of our November 3, 2016 proposed rule at 81 
FR 76547, at 76549.
---------------------------------------------------------------------------

    In subsequent communications with the District, we noted our 
mistaken rationale with respect to RACT compliance and the two 
Coachella Valley facilities. In response, the District reviewed the 
permits for the facilities and included the relevant permit conditions 
for each as appendices A and B to the 2017 RACT Supplement. The permit 
conditions submitted by the District pertain to specified 
NOX emission limits ranging from 2.5 to 5 parts per million 
(ppm) for the gas turbines, control technology (selective catalytic 
reduction (SCR)), and monitoring, among other elements. The District's 
analysis indicates that SCR is generally identified as an emission 
control technology to achieve ``best available control technology'' 
emission limits in the range of 2 to 5 ppm for gas turbines, and thus 
the controls meet or exceed the requirements for RACT. We have reviewed 
the permit conditions (and SCAQMD's analysis) and find that they 
provide for RACT level of control (or better) at the two RECLAIM 
facilities in Coachella Valley. As such, we propose to approve the 
permit conditions as part of the SIP.

C. Public Comment and Proposed Action

    As authorized in section 110(k)(3) of the Act, and based on the 
rationale discussed above, the EPA proposes to approve the 2016 AQMP 
RACT SIP and 2017 RACT Supplement, including the RACT demonstrations 
provided in the two documents, negative declarations for two CTG source 
categories, and certain permit conditions for two power plants in 
Coachella Valley, because we believe they fulfill the RACT SIP 
requirements under CAA sections 182(b) and (f) and 40 CFR 51.1112 for 
the South Coast and Coachella Valley for the 2008 ozone NAAQS. As noted 
above, our proposed action relies upon our evaluation of the public 
draft version of the 2017 RACT Supplement and we will not take final 
action until it is adopted and submitted to us as a revision to the 
California SIP. If the 2017 RACT Supplement that we have evaluated were 
to be revised significantly prior to adoption and submittal, we will 
need to reconsider our proposed action accordingly. We are withdrawing 
our previous proposal (61 FR 76547, November 3, 2016) to partially 
approve and partially disapprove the 2016 AQMP RACT SIP and are now 
proposing full approval because we have concluded that the 2016 AQMP 
RACT SIP, as supplemented by the 2017 RACT Supplement, now meets the 
relevant CAA requirements.\17\ If you submitted

[[Page 27456]]

comments on our previous proposed action and believe that those 
comments remain relevant, you will need to resubmit your comments 
within the public comment period for today's proposed action.
---------------------------------------------------------------------------

    \17\ Although we are withdrawing our November 3, 2016 proposed 
action, our TSD associated with that proposed action still contains 
pertinent information that summarizes our evaluation of SCAQMD's 
2016 AQMP RACT SIP.
---------------------------------------------------------------------------

    We will accept comments from the public on this proposal until July 
17, 2017. If we take final action to approve the submitted documents, 
our final action will incorporate them into the federally-enforceable 
SIP.

III. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference certain permit conditions for two stationary sources in 
Coachella Valley as described above in preamble. The EPA has made, and 
will continue to make, these materials available through 
www.regulations.gov and at the EPA Region IX Office (please contact the 
person identified in the FOR FURTHER INFORMATION CONTACT section of 
this preamble for more information).

IV. Statutory and Executive Order Reviews

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

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

    Dated: June 7, 2017.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2017-12469 Filed 6-14-17; 8:45 am]
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                                                                          Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules                                                   27451

                                                 Paragraph 6003 Class E Airspace                         basis for the proposed partial                            B. Are there other versions of these
                                                 Designated as an Extension to a Class C                 disapproval by completing additional                         documents?
                                                 Surface Area.                                           analysis and by submitting the analysis                   C. What is the purpose of the submitted
                                                 *      *     *       *      *                                                                                        documents?
                                                                                                         to the EPA as a supplement to the RACT                 II. The EPA’s Evaluation and Proposed
                                                 ANE CT E3 Windsor Locks, CT [Amended]                   demonstration. Because the                                   Action
                                                                                                         supplemental analysis adequately                          A. How is the EPA evaluating the
                                                 Bradley International Airport, CT
                                                   (Lat. 41°56′21″ N., long 72°41′00″ W.)                addresses the deficiency, the EPA is                         submitted documents?
                                                   That airspace extending upward from the
                                                                                                         withdrawing the previous proposed                         B. Do the documents meet the evaluation
                                                                                                         action and is now proposing full                             criteria?
                                                 surface within 3.2 miles each side of the 224
                                                                                                         approval of SCAQMD’s RACT SIP                             C. Public Comment and Proposed Action
                                                 bearing from Bradley International Airport,                                                                    III. Incorporation by Reference
                                                 extending from the 5-mile radius to 9.6 miles           demonstration for the 2008 ozone
                                                                                                                                                                IV. Statutory and Executive Order Reviews
                                                 southwest of the Bradley International                  NAAQS, as recently supplemented. The
                                                 Airport.                                                action proposed herein is based on a                   I. The State’s Submittal
                                                 Paragraph 6005 Class E Airspace Areas                   public draft version of the SCAQMD                     A. What documents did the State
                                                 Extending Upward From 700 Feet or More                  RACT supplement, and the EPA will not                  submit?
                                                 Above the Surface of the Earth.                         take final action until submittal of the
                                                                                                         final version of the SCAQMD RACT                          On June 6, 2014, the SCAQMD
                                                 *      *     *       *      *
                                                                                                         supplement as a revision of the                        adopted the ‘‘2016 AQMP) Reasonably
                                                 ANE CT E5 Windsor Locks, CT [Amended]                   California SIP.                                        Available Control Technology (RACT)
                                                 Bradley International Airport, CT                       DATES: Any comments must arrive by                     Demonstration’’ (‘‘2016 AQMP RACT
                                                   (Lat. 41°56′21″ N., long. 72°41′00″ W.)               July 17, 2017.                                         SIP’’), and on July 18, 2014, the
                                                   That airspace extending upward from 700                                                                      California Air Resources Board (CARB)
                                                                                                         ADDRESSES: Submit your comments,
                                                 feet above the surface within a 10.9-mile                                                                      submitted it to the EPA for approval as
                                                 radius of Bradley International Airport.                identified by Docket ID No. EPA–R09–
                                                                                                                                                                a revision to the California SIP. On
                                                                                                         OAR–2016–0215 at https://
                                                   Issued in College Park, Georgia, on June 7,                                                                  January 18, 2015, the submittal of the
                                                                                                         www.regulations.gov/, or via email to
                                                 2017.                                                                                                          2016 AQMP RACT SIP was deemed
                                                                                                         Andrew Steckel, Rulemaking Office
                                                 Debra L. Hogan,                                                                                                complete by operation of law.
                                                                                                         Chief at Steckel.Andrew@epa.gov. For                      On May 22, 2017, CARB submitted
                                                 Acting Manager, Operations Support Group,               comments submitted at Regulations.gov,
                                                 Eastern Service Center, Air Traffic                                                                            the District’s public draft version of the
                                                                                                         follow the online instructions for                     ‘‘Supplemental RACM/RACT Analysis
                                                 Organization.
                                                                                                         submitting comments. Once submitted,                   for the NOX RECLAIM Program’’ (‘‘2017
                                                 [FR Doc. 2017–12332 Filed 6–14–17; 8:45 am]
                                                                                                         comments cannot be removed or edited                   RACT Supplement’’) along with a
                                                 BILLING CODE 4910–13–P                                  from Regulations.gov. For either manner                request for parallel processing.1 The
                                                                                                         of submission, the EPA may publish any                 District prepared the 2017 RACT
                                                                                                         comment received to its public docket.                 Supplement to address a deficiency that
                                                 ENVIRONMENTAL PROTECTION                                Do not submit electronically any
                                                 AGENCY                                                                                                         the EPA had identified in the 2016
                                                                                                         information you consider to be                         AQMP RACT SIP and that was the basis
                                                                                                         Confidential Business Information (CBI)                for the EPA’s proposed partial
                                                 40 CFR Part 52                                          or other information whose disclosure is               disapproval of that submittal published
                                                 [EPA–R09–OAR–2016–0215; FRL–9963–78–                    restricted by statute. Multimedia                      on November 3, 2016 (81 FR 76547).
                                                 Region 9]                                               submissions (audio, video, etc.) must be               The 2017 RACT Supplement includes
                                                                                                         accompanied by a written comment.                      additional emissions analysis, two
                                                 Approval of California Air Plan                         The written comment is considered the
                                                 Revisions, South Coast Air Quality                                                                             negative declarations, and certain
                                                                                                         official comment and should include                    conditions from permits for two specific
                                                 Management District                                     discussion of all points you wish to                   stationary sources located in Coachella
                                                 AGENCY:  Environmental Protection                       make. The EPA will generally not                       Valley. As noted in footnote 1 of this
                                                 Agency (EPA).                                           consider comments or comment                           document, under our parallel processing
                                                 ACTION: Proposed rule.                                  contents located outside of the primary                procedure, the EPA proposes action on
                                                                                                         submission (i.e., on the Web, cloud, or                a public draft version of a SIP revision
                                                 SUMMARY:   The Environmental Protection                 other file sharing system). For                        but will take final action only after the
                                                 Agency (EPA) is proposing to approve                    additional submission methods, please                  final version is adopted and submitted
                                                 revisions to the South Coast Air Quality                contact the person identified in the FOR               to the EPA for approval. In this instance,
                                                 Management District (SCAQMD or                          FURTHER INFORMATION CONTACT section.
                                                                                                                                                                we are proposing action based on the
                                                 District) portion of the California State               For the full EPA public comment policy,                public draft version of the 2017 RACT
                                                 Implementation Plan (SIP). These                        information about CBI or multimedia                    Supplement submitted by CARB on May
                                                 revisions concern the District’s                        submissions, and general guidance on                   22, 2017 and will not take final action
                                                 demonstration regarding Reasonably                      making effective comments, please visit                until the final version of the 2017 RACT
                                                 Available Control Technology (RACT)                     https://www.epa.gov/dockets/
                                                 requirements for the 2008 8-hour ozone                  commenting-epa-dockets.                                   1 Under the EPA’s ‘‘parallel processing’’
                                                 National Ambient Air Quality Standard                   FOR FURTHER INFORMATION CONTACT:                       procedure, the EPA proposes rulemaking action
                                                 (NAAQS) in the South Coast Air Basin
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                                                                                                         Stanley Tong, EPA Region IX, (415)                     concurrently with the state’s proposed rulemaking.
                                                 and Coachella Valley ozone                              947–4122, tong.stanley@epa.gov.                        If the state’s proposed rule is changed, the EPA will
                                                                                                                                                                evaluate that subsequent change and may publish
                                                 nonattainment areas. The EPA had                        SUPPLEMENTARY INFORMATION:                             another notice of proposed rulemaking. If no
                                                 previously proposed to partially                        Throughout this document, ‘‘we,’’ ‘‘us’’               significant change is made, the EPA will publish a
                                                 approve and partially disapprove                        and ‘‘our’’ refer to the EPA.                          final rulemaking on the rule after responding to any
                                                 SCAQMD’s RACT SIP demonstration.                                                                               submitted comments. Final rulemaking action by
                                                 However, since publication of the                       Table of Contents                                      the EPA will occur only after the rule has been fully
                                                                                                                                                                adopted by California and submitted formally to the
                                                 proposed rule, SCAQMD has addressed                     I. The State’s Submittal                               EPA for incorporation into the SIP. See 40 CFR part
                                                 the identified deficiency that was the                     A. What documents did the State submit?             51, appendix V.



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                                                 27452                    Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules

                                                 Supplement is adopted and submitted                      nonattainment area (CAA section 182(d)                 Coachella Valley) (see 40 CFR 81.305),
                                                 to the EPA. CARB’s May 22, 2017 letter                   and (f)).                                              so the District’s rules must implement
                                                 indicates that the District Board is                        Section III.D of the preamble to the                RACT.
                                                 scheduled to consider approval of the                    EPA’s final rule to implement the 2008                   Guidance and policy documents that
                                                 2017 RACT Supplement and associated                      ozone NAAQS (80 FR 12264, March 6,                     we use to evaluate enforceability,
                                                 documents on July 7, 2017, and if it is                  2015) discusses RACT requirements. It                  revision/relaxation and rule stringency
                                                 approved, CARB will submit the final                     states, in part, that RACT SIPs must                   requirements for the applicable criteria
                                                 package to the EPA.                                      contain adopted RACT regulations,                      pollutants include the following:
                                                                                                          certifications where appropriate that
                                                 B. Are there other versions of these                     existing provisions are RACT, and/or                   1. ‘‘State Implementation Plans; General
                                                 documents?                                               negative declarations that no sources in                     Preamble for the Implementation of Title
                                                                                                          the nonattainment area are covered by a                      I of the Clean Air Act Amendments of
                                                   There are no previous versions of the
                                                                                                                                                                       1990,’’ 57 FR 13498 (April 16, 1992); 57
                                                 documents described above in the                         specific CTG source category, and that
                                                                                                                                                                       FR 18070 (April 28, 1992);
                                                 SCAQMD portion of the California SIP                     states must submit appropriate
                                                                                                                                                                 2. ‘‘Issues Relating to VOC Regulation
                                                 for the 2008 8-hour ozone NAAQS.                         supporting information for their RACT                        Cutpoints, Deficiencies, and Deviations,’’
                                                                                                          submissions as described in the EPA’s                        EPA, May 25, 1988 (the Bluebook,
                                                 C. What is the purpose of the submitted                  implementation rule for the 1997 ozone
                                                 documents?                                                                                                            revised January 11, 1990);
                                                                                                          NAAQS. See id., at 12278; 70 FR 71612,                 3. ‘‘Guidance Document for Correcting
                                                    Volatile Organic Compounds (VOC)                      at 71652 (November 29, 2005).                                Common VOC & Other Rule
                                                 and nitrogen oxides (NOX) together                          The submitted documents provide                           Deficiencies,’’ EPA Region 9, August 21,
                                                 produce ground-level ozone, smog and                     SCAQMD’s analyses of its compliance                          2001 (the Little Bluebook);
                                                 particulate matter (PM), which harm                      with the CAA section 182 RACT                          4. ‘‘State Implementation Plans; Nitrogen
                                                 human health and the environment.                        requirements for the 2008 8-hour ozone                       Oxides Supplement to the General
                                                 Section 110(a) of the Clean Air Act                      NAAQS. CARB also intends the 2017                            Preamble; Clean Air Act Amendments of
                                                 (CAA or ‘‘Act’’) requires states to submit               RACT Supplement to address the EPA’s                         1990 Implementation of Title I; Proposed
                                                 regulations that control VOC and NOX                     April 14, 2016 (81 FR 22025)                                 Rule,’’ (the NOX Supplement), 57 FR
                                                 emissions. CAA sections 182(b)(2) and                    disapproval of the reasonably available                      55620, November 25, 1992;
                                                 (f) require that SIPs for 1-hour ozone                   control measures/RACT (RACM/RACT)                      5. Memorandum from William T. Harnett to
                                                 nonattainment areas classified as                        demonstration for the South Coast for                        Regional Air Division Directors, (May 18,
                                                                                                          the 2006 fine PM (PM2.5) NAAQS.                              2006), ‘‘RACT Qs & As—Reasonably
                                                 moderate or above implement RACT for
                                                                                                          Today’s rulemaking addresses the RACT                        Available Control Technology (RACT)
                                                 any source covered by a Control
                                                                                                          requirement for the 2008 ozone                               Questions and Answers’’;
                                                 Techniques Guidelines 2 (CTG)                                                                                   6. ‘‘Implementation of the 2008 National
                                                 document and for any major source of                     standard, not the RACM/RACT
                                                                                                                                                                       Ambient Air Quality Standards for
                                                 VOC or NOX. The EPA’s implementing                       requirement for the PM2.5 NAAQS. The                         Ozone: State Implementation Plan
                                                 regulations for the 2008 ozone NAAQS                     EPA will address the latter requirement                      Requirements’’ (80 FR 12264; March 6,
                                                 extend the same RACT requirement to                      in a separate rulemaking. The EPA’s                          2015); and
                                                 areas classified as moderate or above for                technical support documents (TSDs)                     7. ‘‘Final Rule to Implement the 8-hour
                                                 the 2008 ozone NAAQS. See 40 CFR                         evaluating the 2016 AQMP RACT SIP                            Ozone National Ambient Air Quality
                                                 51.1112.                                                 and the 2017 RACT Supplement have                            Standard –Phase 2’’ (70 FR 71612;
                                                    The SCAQMD is subject to the RACT                     more information about the District’s                        November 29, 2005).
                                                 requirement as it is authorized under                    submissions and the EPA’s evaluation
                                                                                                          thereof.                                               B. Do the documents meet the
                                                 state law to regulate stationary sources                                                                        evaluation criteria?
                                                 in the South Coast Air Basin (‘‘South                    II. The EPA’s Evaluation and Proposed
                                                 Coast’’), which is classified as an                      Action                                                   The 2016 AQMP RACT SIP and 2017
                                                 extreme nonattainment area, and in the                                                                          RACT Supplement build on the
                                                 Coachella Valley portion of Riverside                    A. How is the EPA evaluating submitted                 District’s previous RACT SIP
                                                 County (‘‘Coachella Valley’’), which is                  documents?                                             demonstrations: The 2006 RACT SIP (73
                                                 classified as a severe-15 nonattainment                    SIP rules must be enforceable (see                   FR 76947, December 18, 2008), the 2007
                                                 area for the 2008 8-hour ozone NAAQS                     CAA section 110(a)(2)), must not                       AQMP (77 FR 12674, March 1, 2012)
                                                 (40 CFR 81.305); 77 FR 30088 at 30101                    interfere with applicable requirements                 and the 2012 AQMP (79 FR 52526,
                                                 and 30103 (May 21, 2012). Therefore,                     concerning attainment and reasonable                   September 3, 2014). The 2016 AQMP
                                                 the SCAQMD must, at a minimum,                           further progress or other CAA                          RACT SIP concludes, after a review and
                                                 adopt RACT-level controls for all                        requirements (see CAA section 110(l)),                 evaluation of more than 30 rules
                                                 sources covered by a CTG document                        and must not modify certain SIP control                recently developed by other ozone
                                                 and for all major non-CTG sources of                     requirements in nonattainment areas                    nonattainment air districts, that
                                                 VOC or NOX within the two                                without ensuring equivalent or greater                 SCAQMD’s current rules meet the EPA’s
                                                 nonattainment areas. Any stationary                      emissions reductions (see CAA section                  criteria for RACT acceptability and
                                                 source that emits or has the potential to                193). Generally, SIP rules must require                inclusion in the SIP for the 2008 8-hour
                                                 emit at least 10 tons per year of VOC or                 RACT for each category of sources                      ozone NAAQS. The 2017 RACT
                                                 NOX is a major stationary source in an                   covered by a CTG document as well as                   Supplement adds to the 2016 AQMP
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                                                 extreme ozone nonattainment area (CAA                    each major source of VOC or NOX in                     RACT SIP by including two negative
                                                 section 182(e) and (f)), and any                         ozone nonattainment areas classified as                declarations, and by including certain
                                                 stationary source that emits or has the                  moderate or above (see CAA section                     permit conditions for two major NOX
                                                 potential to emit at least 25 tons per                   182(b)(2) and (f), and 40 CFR 51.1112).                sources in Coachella Valley, and by
                                                 year of VOC or NOX is a major                            The SCAQMD regulates an extreme                        providing a demonstration for how
                                                 stationary source in a severe ozone                      ozone nonattainment area (i.e., the                    District rules meet the RACT
                                                                                                          South Coast Air Basin) and a severe                    requirement for major NOX sources in
                                                   2 CTGs   are used to help define VOC RACT.             ozone nonattainment area (i.e.,                        the South Coast.


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                                                                         Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules                                                     27453

                                                 1. CTG Source Categories—South Coast                    Shipbuilding and Ship Repair Facilities                 (RTCs) from the RECLAIM market.
                                                 and Coachella Valley                                    CTG and the paper coating portion of                    Section 40440 of the California Health
                                                    With regards to CTG source                           the 2007 Paper, Film, and Foil Coatings                 and Safety Code (CH&SC) requires the
                                                 categories, based on its research of the                CTG, we have reviewed the District’s                    District to monitor advances in best
                                                 District’s permit databases and                         evaluation of its sources as described in               available retrofit control technology
                                                 telephone directories for sources in the                the 2017 RACT Supplement and concur                     (BARCT) and periodically to reassess
                                                 District for the 2007 AQMP, the 2012                    with the District’s findings. As such, we               the overall facility caps to ensure that
                                                 AQMP, and the 2016 AQMP RACT SIP,                       propose approval of the District’s two                  the facility caps are equivalent, in the
                                                 the SCAQMD concluded that all                           negative declarations included in the                   aggregate, to BARCT emission levels
                                                 identified sources subject to a CTG are                 2017 RACT Supplement.                                   imposed on affected sources.5 Facilities
                                                 subject to District rules that establish                                                                        subject to RECLAIM are exempted from
                                                                                                         2. Major Stationary Sources of VOC or
                                                                                                                                                                 a number of District command-and-
                                                 control requirements meeting or                         NOX Emissions (Other than RECLAIM
                                                                                                                                                                 control (also referred to as
                                                 exceeding RACT. Because District rules                  Facilities)—South Coast and Coachella
                                                                                                                                                                 ‘‘prohibitory’’) rules that otherwise
                                                 apply in both the South Coast and                       Valley
                                                                                                                                                                 apply to sources of NOX and SOX
                                                 Coachella Valley, the District’s                           With respect to major stationary                     emissions in the South Coast.6 With
                                                 conclusion in this regard extends to                    sources of VOC or NOX emissions, the                    certain exceptions, facilities located
                                                 both nonattainment areas.                               District provided supplemental                          outside of the South Coast but within
                                                    Where there are no existing sources                  information identifying 21 new major                    SCAQMD jurisdiction (e.g., facilities in
                                                 covered by a particular CTG document,                   Title V sources since its 2006 RACT SIP                 Coachella Valley) are not included in
                                                 states may, in lieu of adopting RACT                    certification and provided a list of                    the RECLAIM program. As of the 2015
                                                 requirements for those sources, adopt                   equipment at these facilities that emit                 compliance year, the most recent
                                                 negative declarations certifying that                   greater than 5 tons per year. The District              compliance year fully audited, there are
                                                 there are no such sources in the relevant               concluded that all the identified                       approximately 268 facilities in the
                                                 nonattainment area. The SCAQMD did                      equipment were covered by command-                      RECLAIM NOX program.7
                                                 not include any negative declarations in                and-control VOC or NOX rules that                          Under longstanding EPA
                                                 the 2016 AQMP RACT SIP; however,                        implement RACT. The District’s efforts                  interpretation of the CAA, a market-
                                                 subsequent to its 2016 AQMP RACT SIP                    to identify all new major sources                       based cap and trade program may satisfy
                                                 submittal, the EPA had several                          appears to be thorough, and we agree                    RACT requirements by ensuring that the
                                                 discussions with the SCAQMD and                         that the District’s command-and-control                 level of emission reductions resulting
                                                 concluded there may be two CTG                          VOC and NOX rules approved in the SIP                   from implementation of the program
                                                 categories where the District has no                    require implementation of RACT for all                  will be equal, in the aggregate, to those
                                                 sources applicable to the CTGs: (1)                     major non-CTG VOC and NOX sources                       reductions expected from the direct
                                                 Surface Coating Operations at                           in the South Coast and Coachella Valley                 application of RACT on all affected
                                                 Shipbuilding and Ship Repair Facilities                 to which those rules apply. Generally,                  sources within the nonattainment area.8
                                                 CTG; and (2) the paper coating portion                  major NOX sources in the South Coast                    The EPA approved the RECLAIM
                                                 of the 2007 Paper, Film, and Foil                       and two major NOX sources in                            program into the California SIP in June
                                                 Coatings CTG. Based on further                          Coachella Valley are not subject to the                 1998 based in part on a conclusion that
                                                 investigation, the District has agreed                  District’s command-and-control rules,                   the NOX emission caps in the program
                                                 that negative declarations for the two                  but are subject to a set of rules                       satisfied the RACT requirements of CAA
                                                 CTG categories are warranted and has                    establishing a cap-and-trade program.4                  section 182(b)(2) and (f) for covered
                                                 included them in the 2017 RACT                          Our evaluation of these sources for                     NOX emission sources in the aggregate.9
                                                 Supplement.3                                            compliance with the RACT requirement                    In 2005 and 2010, the District adopted
                                                    Based on our review and evaluation of                is covered in the following sections of                 revisions to the RECLAIM program,
                                                 the documentation provided by the                       this document.                                          which the EPA approved in 2006 and
                                                 SCAQMD in the 2016 AQMP RACT SIP                                                                                2011, respectively, based in part on
                                                 (and earlier plans) and in the 2017                     3. RECLAIM Facilities in the South
                                                                                                         Coast                                                   conclusions that the revisions continued
                                                 RACT Supplement, we agree that
                                                 existing District rules approved in the                    Within the South Coast, major NOX                       5 BARCT is defined as ‘‘an emission limitation
                                                 SIP meet or are more stringent than the                 sources are included in SCAQMD’s                        that is based on the maximum degree of reduction
                                                 corresponding CTG limits and                            Regulation XX (‘‘Regional Clean Air                     achievable taking into account environmental,
                                                 applicability thresholds for each                       Incentives Market (RECLAIM)’’)                          energy, and economic impacts by each class or
                                                                                                         program. The District adopted the                       category of source.’’ CH&SC section 40406. For the
                                                 category of VOC sources covered by a                                                                            purposes of comparison, the EPA defines RACT as
                                                 CTG document, other than the two CTG                    RECLAIM program in 1993 to reduce                       the lowest emission limitation that a particular
                                                 documents discussed above. As                           emissions from the largest stationary                   source is capable of meeting by the application of
                                                 discussed in our TSD, we conclude that                  sources of NOX and sulfur oxides (SOX)                  control technology that is reasonably available
                                                                                                         emissions through a market-based                        considering technological and economic feasibility.
                                                 existing District rules require the                                                                             44 FR 53762 (September 17, 1979). As such, we
                                                 implementation of RACT for each                         trading program that establishes annual                 generally find that BARCT level of control meets or
                                                 category of VOC sources covered by a                    declining NOX and SOX allocations (also                 exceeds RACT level of control.
                                                 CTG document (other than the two                        called ‘‘facility caps’’) and allows                       6 See District Rule 2001 (‘‘Applicability’’), as

                                                                                                         covered facilities to comply with their                 amended May 6, 2005. Exemptions from RECLAIM,
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                                                 discussed above) located in the South                                                                           such as the exemption for certain facilities located
                                                 Coast and Coachella Valley. For the                     facility caps by installing pollution                   in Coachella Valley, are listed in Rule 2001(i).
                                                 Surface Coating Operations at                           control equipment, changing operations,                    7 See page 4 of the 2017 RACT Supplement.
                                                                                                         or purchasing RECLAIM trading credits                      8 59 FR 16690 (April 7, 1994) and the EPA,
                                                   3 SCAQMD, ‘‘Negative Declaration for Control                                                                  ‘‘Improving Air Quality with Economic Incentive
                                                 Techniques Guidelines of Surface Coating                  4 Certain sources such as fire-fighting facilities,   Programs,’’ EPA–452/R–01–001 (January 2001), at
                                                 Operations at Shipbuilding and Ship Repair              police facilities, and public transit remain covered    Section 16.7 and 80 FR 12264, 12279 (March 6,
                                                 Facilities, and Paper, Film, and Foil Coatings,’’ May   under SCAQMD’s command-and-control rules and            2015).
                                                 2017, included at the back of the 2017 RACT             are exempted from the cap-and-trade program. See           9 61 FR 57834 (November 8, 1996) and 63 FR

                                                 Supplement.                                             Rule 2001.                                              32621 (June 15, 1998).



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                                                 27454                   Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules

                                                 to satisfy RACT requirements.10 We                      requirement had been submitted as part                 been achieved in practice regardless of
                                                 refer to the current NOX RECLAIM                        of the 2016 AQMP RACT SIP.                             whether these controls are required in
                                                 program as approved into the SIP as the                   In response to our November 3, 2016                  SIP approved rules. As a result, the
                                                 ‘‘2010 RECLAIM program.’’ 11                            proposed partial disapproval of the                    District identified new BARCT levels for
                                                    The 2016 AQMP RACT SIP relies on                     South Coast RACT demonstration, and                    six source categories in the NOX
                                                 the 2010 RECLAIM program to satisfy                     also to respond to the EPA’s April 14,                 RECLAIM program and established a
                                                 the RACT requirements for major NOX                     2016 disapproval of the South Coast                    new ending RTC allocation of 26.5 tpd,
                                                 sources in the South Coast. With respect                RACM/RACT demonstration for the                        which represented the allowable
                                                 to such sources, we initially concluded,                2006 PM2.5 NAAQS, both of which were                   programmatic emissions after BARCT
                                                 as described in our November 3, 2016                    premised on the same deficient showing                 implementation. The methodology for
                                                 proposed rule, 81 FR 76547, at 76549,                   with respect to major NOX sources in                   determining the ending RTC allocation
                                                 that the 2016 AQMP RACT SIP had                         the South Coast that are subject to                    relied on using actual emissions that are
                                                 failed to demonstrate that the 2010                     RECLAIM, the District has provided, in                 adjusted for growth and BARCT. Under
                                                 RECLAIM program had achieved NOX                        the 2017 RACT Supplement, a specific                   amended rules adopted by the District
                                                 emissions reductions equal, in the                      demonstration of how the 2010                          in 2005, the facility annual allocations
                                                 aggregate, to those reductions expected                 RECLAIM program has achieved, in the                   (in the aggregate) were reduced in
                                                 from the direct application of RACT on                  aggregate, RACT level of control for                   annual increments from 34.2 tpd to 26.5
                                                 all major NOX sources in the South                      major NOX sources in the South Coast.                  tpd between 2007 and 2011.
                                                 Coast. We based our initial conclusion                  In the 2017 RACT Supplement, the                          To demonstrate that the 2010
                                                 on information contained in SCAQMD’s                    District has also evaluated the                        RECLAIM program (reflecting 2005 NOX
                                                 December 2015 Draft Final Staff Report                  amendments in the RECLAIM program                      RECLAIM rule amendments)
                                                 (‘‘2015 staff report’’) revising Regulation             adopted by the District in 2015 and                    implemented RACT, the District re-
                                                 XX that indicated that further                          2016 for compliance with the RACT                      examined the BARCT reevaluation that
                                                 reductions in the NOX RECLAIM                           requirement.13                                         it conducted in 2005 and determined
                                                 emissions cap were needed to achieve                      When the NOX RECLAIM program                         that, for certain source categories, the
                                                 BARCT.12 Given that BARCT level of                      was first adopted, RECLAIM facilities                  BARCT allocation level was essentially
                                                 control by definition meets or exceeds                  were issued NOX annual allocations that                equivalent to RACT, but that, for certain
                                                 RACT level of control, we could have                    declined annually from 1993 until 2003                 other source categories, the BARCT
                                                 safely concluded that the 2010                          and remained constant after 2003. The                  allocation level was beyond RACT
                                                 RECLAIM program meets RACT level of                     ending RTC allocation (for all program                 because there were no other rules in the
                                                 control if it had been demonstrated to                  sources) in 2003 was set at 34.2 tons per              District itself or any other California air
                                                 meet, in the aggregate, BARCT level of                  day (tpd). The annual allocations                      district for these specific categories that
                                                 control. In light of the information in                 reflected the levels of BARCT to be in                 were more stringent than the limits
                                                 the 2015 staff report, however, there was               place at the RECLAIM facilities, and                   established under the original RECLAIM
                                                 evidence that the RECLAIM program                       were the result of a BARCT analysis                    program in 1993 (and fully
                                                 had not achieved BARCT level of                         conducted in 1993.                                     implemented by 2003). The District re-
                                                 control, and thus we had inadequate                       As noted above, state law also                       calculated a hypothetical ending annual
                                                 basis to conclude that the 2010                         requires the District to monitor                       RTC allocation (of 30.9 tpd) reflecting
                                                 RECLAIM program had achieved RACT                       advances in BARCT and to periodically                  RACT implementation (rather than
                                                 level of control. The use of the BARCT                  reassess the overall facility caps to                  BARCT) and determined that, based on
                                                 level of control, rather than RACT, as                  ensure that RECLAIM facilities achieve                 audited actual NOX emissions in 2012,
                                                 the criterion for approval or disapproval               the same or greater emission reductions                the 2010 RECLAIM program achieved a
                                                 was necessary for the purposes of the                   that would have occurred under a                       16% reduction in actual NOX emissions
                                                 November 3, 2016 proposed rule                          command-and-control approach. In                       from RECLAIM sources from 2006 to
                                                 because no specific demonstration of                    2005, the District examined the                        2012 whereas only a 9.6% reduction
                                                 RECLAIM as meeting the RACT                             RECLAIM program and found that                         (i.e., 34.2 tpd down to 30.9 tpd) was
                                                                                                         additional reduction opportunities                     necessary to meet the RACT
                                                    10 71 FR 51120 (August 29, 2006) and 76 FR           existed due to the advancement of                      requirement. On that basis, the District
                                                 50128 (August 12, 2011).                                control technology.                                    concludes, in the 2017 RACT
                                                    11 The RECLAIM program is codified by the
                                                                                                           As part of the 2005 NOX BARCT                        Supplement, that the 2010 RECLAIM
                                                 District in Regulation XX, which includes a number
                                                 of individual rules, such as Rule 2001
                                                                                                         reassessment, the District examined the                program met the RACT requirement for
                                                 (‘‘Applicability’’) and Rule 2002 (‘‘Allocations for    most stringent emission limits in other                major NOX sources in the South Coast.
                                                 Oxides of Nitrogen (NOX) and Oxides of Sulfur           air pollution control district rules and                  We have reviewed the District’s
                                                 (SOX)’’ and many others. Herein, we refer to the        other requirements for equipment                       evaluation of the 2010 RECLAIM
                                                 ‘‘2010 RECLAIM program,’’ because the most recent
                                                 SIP-approved RECLAIM rule amendments were
                                                                                                         categories in the RECLAIM program in                   program for compliance with the RACT
                                                 adopted by the District on November 5, 2010. The        an effort to determine the appropriate                 requirement and find that the District’s
                                                 2010 amendments only affected certain sections of       mass emission reductions to reflect                    approach, assumptions, and calculation
                                                 Rule 2002 pertaining to SOX emissions, and thus,        BARCT. District staff also examined                    methods are reasonable. Based on the
                                                 the ‘‘2010 RECLAIM program’’ reflects other
                                                 amendments by the District that we approved prior       types of retrofit technologies that had                District’s analysis, we conclude that the
                                                 to that time and that were unaffected by the 2010                                                              NOX RECLAIM program, as amended in
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                                                 amendments. For instance, with respect to NOX             13 On March 17, 2017, CARB submitted amended
                                                                                                                                                                2005, provided for NOX reductions
                                                 allocations, the most recent SIP-approved               RECLAIM rules reflecting revisions adopted by the      equivalent, in the aggregate, to those
                                                 amendments that are part of the ‘‘2010 RECLAIM          District on December 4, 2015 (significant revisions
                                                 program’’ were adopted by the District on January       reducing total NOX RTC holdings by 12 tpd by           reductions expected from the direct
                                                 7, 2005.                                                2022), February 5, 2016 (minor revisions to certain    application of RACT on all major NOX
                                                    12 Draft Final Staff Report, Proposed Amendments     definitions), and October 7, 2016 (new provisions      sources in the South Coast.
                                                 to Regulation XX Regional Clean Air Initiatives         intended to prevent the majority of facility              However, the emissions limits that
                                                 Market (RECLAIM) NOX RECLAIM, December 4,               shutdown credits from entering the market) to the
                                                 2015 http://www.aqmd.gov/docs/default-source/           EPA as a revision to the California SIP. The EPA
                                                                                                                                                                form the basis for the District’s re-
                                                 Agendas/Governing-Board/2015/2015-dec4-                 has recently proposed to approve the amended           examination of the RECLAIM program
                                                 030.pdf?sfvrsn=9.                                       rules. See 82 FR 25996 (June 6, 2017).                 as described above are predicated on the


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                                                                         Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules                                                   27455

                                                 2005 BARCT reevaluation of the                          2016 help to ensure the success of the                 reviewed the permits for the facilities
                                                 program. To comply with the RACT                        program in achieving BARCT-equivalent                  and included the relevant permit
                                                 requirement for the 2008 ozone                          (and RACT-equivalent) reductions by                    conditions for each as appendices A and
                                                 standard, for which designations were                   preventing the majority of facility                    B to the 2017 RACT Supplement. The
                                                 promulgated in 2012, the RECLAIM                        shutdown RTCs from entering the                        permit conditions submitted by the
                                                 program had to be re-evaluated post-                    market and delaying the installation of                District pertain to specified NOX
                                                 2012 for potential improvements in                      pollution controls at other NOX                        emission limits ranging from 2.5 to 5
                                                 control technology since 2005. In 2015,                 RECLAIM facilities.                                    parts per million (ppm) for the gas
                                                 the District conducted such a                                                                                  turbines, control technology (selective
                                                                                                         4. RECLAIM Facilities in Coachella
                                                 reevaluation and amended the                                                                                   catalytic reduction (SCR)), and
                                                                                                         Valley
                                                 RECLAIM rules to establish a new                                                                               monitoring, among other elements. The
                                                 ending RTC allocation of 14.5 tpd                          As noted above, unlike major NOX                    District’s analysis indicates that SCR is
                                                 (reflecting BARCT implementation) to                    sources in the South Coast, major NOX                  generally identified as an emission
                                                 be achieved incrementally from 2017                     sources in Coachella Valley are                        control technology to achieve ‘‘best
                                                 through 2022.                                           generally not eligible to participate in               available control technology’’ emission
                                                    In the 2017 RACT Supplement, the                     the RECLAIM program but rather are                     limits in the range of 2 to 5 ppm for gas
                                                 District also provides a demonstration of               subject to the District’s prohibitory                  turbines, and thus the controls meet or
                                                 how the RECLAIM program, as                             rules.15 The RECLAIM rules, however,                   exceed the requirements for RACT. We
                                                 amended in 2015, meets the RACT                         establish an exception for electric                    have reviewed the permit conditions
                                                 requirement in the aggregate. To do so,                 generating facilities in Coachella Valley              (and SCAQMD’s analysis) and find that
                                                 the District performed a similar type of                that submit complete permit                            they provide for RACT level of control
                                                 analysis as that described above for the                applications on or after January 1, 2001.              (or better) at the two RECLAIM facilities
                                                 2005 RECLAIM amendments to                              Such facilities may elect to enter the                 in Coachella Valley. As such, we
                                                 determine a hypothetical ending RTC                     RECLAIM program, and to date, two                      propose to approve the permit
                                                 allocation reflecting RACT                              facilities in Coachella Valley have                    conditions as part of the SIP.
                                                 implementation (rather than BARCT) of                   elected to enter the program.
                                                 14.8 tpd. Because the ending RTC                           In our November 3, 2016 proposed                    C. Public Comment and Proposed
                                                 allocation (adopted by the District in                  rule, we did not extend the deficiency                 Action
                                                 2015 and implementing BARCT) of 14.5                    we identified in the RACT                                 As authorized in section 110(k)(3) of
                                                 tpd is less than (i.e., more stringent                  demonstration for the South Coast to                   the Act, and based on the rationale
                                                 than) the hypothetical RTC allocation                   Coachella Valley because we found that                 discussed above, the EPA proposes to
                                                 (implementing RACT) of 14.8 tpd, the                    the two RECLAIM facilities that are                    approve the 2016 AQMP RACT SIP and
                                                 District concludes that the program as                  located there were both equipped with
                                                                                                                                                                2017 RACT Supplement, including the
                                                 amended in 2015 meets the RACT                          control technology that meets or
                                                                                                                                                                RACT demonstrations provided in the
                                                 requirement.                                            exceeds RACT level of control.16 The
                                                                                                                                                                two documents, negative declarations
                                                    We have reviewed the District’s                      basic premise for our proposed
                                                                                                                                                                for two CTG source categories, and
                                                 approach, assumptions, and methods to                   conclusion in this regard was that the
                                                                                                                                                                certain permit conditions for two power
                                                 the updated RECLAIM program and                         RACT requirement was met through
                                                                                                                                                                plants in Coachella Valley, because we
                                                 agree that, as amended in 2015, the                     permit conditions requiring RACT level
                                                                                                                                                                believe they fulfill the RACT SIP
                                                 RECLAIM program provides for                            of control because such permit
                                                                                                                                                                requirements under CAA sections
                                                 emissions reductions equivalent, in the                 conditions are enforceable because they
                                                                                                                                                                182(b) and (f) and 40 CFR 51.1112 for
                                                 aggregate, to those reductions expected                 were issued under SIP-approved New
                                                                                                         Source Review (NSR) rules. However,                    the South Coast and Coachella Valley
                                                 from the direct application of RACT on                                                                         for the 2008 ozone NAAQS. As noted
                                                 all major NOX sources in the South                      our rationale was mistaken. Generally,
                                                                                                         NSR permit conditions alone are not                    above, our proposed action relies upon
                                                 Coast and thereby meets the RACT                                                                               our evaluation of the public draft
                                                 requirement for such sources for the                    sufficient to meet the RACT requirement
                                                                                                         even where the conditions require                      version of the 2017 RACT Supplement
                                                 purposes of the 2008 ozone standard.14                                                                         and we will not take final action until
                                                    We also agree with the District that                 control technology that represent RACT
                                                                                                         level of control because permit                        it is adopted and submitted to us as a
                                                 RECLAIM rule amendments in October                                                                             revision to the California SIP. If the
                                                                                                         conditions are subject to revision
                                                                                                         outside of the SIP revision process and                2017 RACT Supplement that we have
                                                    14 While not required for our evaluation of the
                                                                                                         because permits can expire whereas SIP                 evaluated were to be revised
                                                 2016 AQMP RACT SIP and 2017 RACT Supplement
                                                 for compliance with the RACT requirement for the        limits must be permanent until revised                 significantly prior to adoption and
                                                 South Coast and Coachella Valley for the 2008           or rescinded through a SIP revision. On                submittal, we will need to reconsider
                                                 ozone standard, we also take note of several recent
                                                                                                         the other hand, permit conditions that                 our proposed action accordingly. We are
                                                 developments that pertain to the RECLAIM                                                                       withdrawing our previous proposal (61
                                                 program. On March 3, 2017, the District adopted the     require RACT level of control at a given
                                                 2016 Air Quality Management Plan and in so doing        facility may suffice to meet the RACT                  FR 76547, November 3, 2016) to
                                                 directed staff to modify the 2016 AQMP NOX              requirement if they are submitted as a                 partially approve and partially
                                                 RECLAIM measure to achieve an additional 5 tpd
                                                                                                         SIP revision and approved into the SIP.                disapprove the 2016 AQMP RACT SIP
                                                 NOX emission reduction as soon as feasible, and not                                                            and are now proposing full approval
                                                 later than 2025, to transition the RECLAIM program         In subsequent communications with
                                                                                                         the District, we noted our mistaken                    because we have concluded that the
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                                                 to a command-and-control regulatory structure
                                                 requiring BARCT level controls as soon as               rationale with respect to RACT                         2016 AQMP RACT SIP, as
                                                 practicable. See SCAQMD, Resolution No. 17–2 (‘‘A       compliance and the two Coachella                       supplemented by the 2017 RACT
                                                 Resolution of the South Coast Air Quality                                                                      Supplement, now meets the relevant
                                                 Management District (SCAQMD or District)                Valley facilities. In response, the District
                                                 Governing Board certifying the Final Program                                                                   CAA requirements.17 If you submitted
                                                 Environmental Impact Report (PEIR) for the 2016            15 District Regulation XX (‘‘Regional Clean Air

                                                 Air Quality Management Plan (AQMP or Plan), and         Incentives Market (RECLAIM)’’, Rule 2001                 17 Although we are withdrawing our November 3,

                                                 adopting the 2016 AQMP, which is to be submitted        (‘‘Applicability’’), paragraph (i)(1)(I).              2016 proposed action, our TSD associated with that
                                                 into the California State Implementation Plan              16 See footnote 8 of our November 3, 2016           proposed action still contains pertinent information
                                                 (SIP)’’), March 3, 2017, page 17.                       proposed rule at 81 FR 76547, at 76549.                                                           Continued




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                                                 27456                   Federal Register / Vol. 82, No. 114 / Thursday, June 15, 2017 / Proposed Rules

                                                 comments on our previous proposed                       affect small governments, as described                 ACTION:   Proposed rule.
                                                 action and believe that those comments                  in the Unfunded Mandates Reform Act
                                                 remain relevant, you will need to                       of 1995 (Pub. L. 104–4);                               SUMMARY:    The Environmental Protection
                                                 resubmit your comments within the                          • Does not have Federalism                          Agency (EPA) is proposing to approve
                                                 public comment period for today’s                       implications as specified in Executive                 revisions to the Placer County Air
                                                 proposed action.                                        Order 13132 (64 FR 43255, August 10,                   Pollution Control District (PCAPCD or
                                                   We will accept comments from the                      1999);                                                 ‘‘the District’’) portion of the California
                                                 public on this proposal until July 17,                     • Is not an economically significant                State Implementation Plan (SIP). These
                                                 2017. If we take final action to approve                regulatory action based on health or                   revisions concern the District’s
                                                 the submitted documents, our final                      safety risks subject to Executive Order                demonstration regarding Reasonably
                                                 action will incorporate them into the                   13045 (62 FR 19885, April 23, 1997);                   Available Control Technology (RACT)
                                                 federally-enforceable SIP.                                 • Is not a significant regulatory action            requirements for the 1997 and 2008 8-
                                                                                                         subject to Executive Order 13211 (66 FR                hour ozone National Ambient Air
                                                 III. Incorporation by Reference                                                                                Quality Standards (NAAQS), and
                                                                                                         28355, May 22, 2001);
                                                    In this rule, the EPA is proposing to                   • Is not subject to requirements of                 negative declarations for the polyester
                                                 include in a final EPA rule regulatory                  Section 12(d) of the National                          resin source category for the 2008 8-
                                                 text that includes incorporation by                     Technology Transfer and Advancement                    hour ozone standard. We are proposing
                                                 reference. In accordance with                           Act of 1995 (15 U.S.C. 272 note) because               action on local SIP revisions under the
                                                 requirements of 1 CFR 51.5, the EPA is                  application of those requirements would                Clean Air Act (CAA or the Act). We are
                                                 proposing to incorporate by reference                   be inconsistent with the Clean Air Act;                taking comments on this proposal and
                                                 certain permit conditions for two                       and                                                    plan to follow with a final action.
                                                 stationary sources in Coachella Valley                     • Does not provide the EPA with the                 DATES: Any comments must arrive by
                                                 as described above in preamble. The                     discretionary authority to address                     July 17, 2017.
                                                 EPA has made, and will continue to                      disproportionate human health or                       ADDRESSES: Submit your comments,
                                                 make, these materials available through                 environmental effects with practical,                  identified by Docket ID No. EPA–R09–
                                                 www.regulations.gov and at the EPA                      appropriate, and legally permissible                   OAR–2017–0218 at http://
                                                 Region IX Office (please contact the                    methods under Executive Order 12898                    www.regulations.gov, or via email to
                                                 person identified in the FOR FURTHER                    (59 FR 7629, February 16, 1994).                       Andrew Steckel, Rulemaking Office
                                                 INFORMATION CONTACT section of this                        In addition, the SIP is not approved                Chief at steckel.andrew@epa.gov. For
                                                 preamble for more information).                         to apply on any Indian reservation land                comments submitted at Regulations.gov,
                                                 IV. Statutory and Executive Order                       or in any other area where the EPA or                  follow the online instructions for
                                                 Reviews                                                 an Indian tribe has demonstrated that a                submitting comments. Once submitted,
                                                                                                         tribe has jurisdiction. In those areas of              comments cannot be removed or edited
                                                   Under the Clean Air Act, the                          Indian country, the proposed rule does                 from Regulations.gov. For either manner
                                                 Administrator is required to approve a                  not have tribal implications and will not              of submission, the EPA may publish any
                                                 SIP submission that complies with the                   impose substantial direct costs on tribal              comment received to its public docket.
                                                 provisions of the Act and applicable                    governments or preempt tribal law as                   Do not submit electronically any
                                                 federal regulations. 42 U.S.C. 7410(k);                 specified by Executive Order 13175 (65                 information you consider to be
                                                 40 CFR 52.02(a). Thus, in reviewing SIP                 FR 67249, November 9, 2000).                           Confidential Business Information (CBI)
                                                 submissions, the EPA’s role is to                                                                              or other information whose disclosure is
                                                 approve state choices, provided that                    List of Subjects in 40 CFR Part 52
                                                                                                                                                                restricted by statute. Multimedia
                                                 they meet the criteria of the Clean Air                   Environmental protection, Air                        submissions (audio, video, etc.) must be
                                                 Act. Accordingly, this proposed action                  pollution control, Incorporation by                    accompanied by a written comment.
                                                 merely proposes to approve SIP                          reference, Intergovernmental relations,                The written comment is considered the
                                                 revisions as meeting federal                            Nitrogen dioxide, Ozone, Reporting and                 official comment and should include
                                                 requirements and does not impose                        recordkeeping requirements, Volatile                   discussion of all points you wish to
                                                 additional requirements beyond those                    organic compounds.                                     make. The EPA will generally not
                                                 imposed by state law. For that reason,                                                                         consider comments or comment
                                                                                                           Authority: 42 U.S.C. 7401 et seq.
                                                 this proposed action:                                                                                          contents located outside of the primary
                                                   • Is not a ‘‘significant regulatory                     Dated: June 7, 2017.
                                                                                                                                                                submission (i.e. on the web, cloud, or
                                                 action’’ subject to review by the Office                Alexis Strauss,                                        other file sharing system). For
                                                 of Management and Budget under                          Acting Regional Administrator, Region IX.              additional submission methods, please
                                                 Executive Orders 12866 (58 FR 51735,                    [FR Doc. 2017–12469 Filed 6–14–17; 8:45 am]            contact the person identified in the FOR
                                                 October 4, 1993) and 13563 (76 FR 3821,                 BILLING CODE 6560–50–P                                 FURTHER INFORMATION CONTACT section.
                                                 January 21, 2011);                                                                                             For the full EPA public comment policy,
                                                   • Does not impose an information                                                                             information about CBI or multimedia
                                                 collection burden under the provisions                  ENVIRONMENTAL PROTECTION                               submissions, and general guidance on
                                                 of the Paperwork Reduction Act (44                      AGENCY                                                 making effective comments, please visit
                                                 U.S.C. 3501 et seq.);                                                                                          http://www2.epa.gov/dockets/
                                                   • Is certified as not having a                        40 CFR Part 52
                                                                                                                                                                commenting-epa-dockets.
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                                                 significant economic impact on a                        [EPA–R09–OAR–2017–0218; FRL–9963–56–                   FOR FURTHER INFORMATION CONTACT:
                                                 substantial number of small entities                    Region 9]
                                                 under the Regulatory Flexibility Act (5                                                                        Nicole Law, EPA Region IX, (415) 947–
                                                 U.S.C. 601 et seq.);                                                                                           4126, law.nicole@epa.gov or Stanley
                                                                                                         Approval of California Air Plan
                                                   • Does not contain any unfunded                                                                              Tong, EPA Region IX, (415) 947–4122,
                                                                                                         Revisions, Placer County Air Pollution
                                                 mandate or significantly or uniquely                                                                           tong.stanley@epa.gov.
                                                                                                         Control District
                                                                                                                                                                SUPPLEMENTARY INFORMATION:
                                                 that summarizes our evaluation of SCAQMD’s 2016         AGENCY: Environmental Protection                       Throughout this document, ‘‘we,’’ ‘‘us’’
                                                 AQMP RACT SIP.                                          Agency (EPA).                                          and ‘‘our’’ refer to the EPA.


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Document Created: 2017-06-15 01:03:58
Document Modified: 2017-06-15 01:03:58
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesAny comments must arrive by July 17, 2017.
ContactStanley Tong, EPA Region IX, (415) 947-4122, [email protected]
FR Citation82 FR 27451 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Nitrogen Dioxide; Ozone; Reporting and Recordkeeping Requirements and Volatile Organic Compounds

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