83_FR_56220 83 FR 56002 - Air Plan Approval; Kentucky; Attainment Plan for Jefferson County SO2

83 FR 56002 - Air Plan Approval; Kentucky; Attainment Plan for Jefferson County SO2

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 218 (November 9, 2018)

Page Range56002-56015
FR Document2018-24582

The Environmental Protection Agency (EPA) is proposing to approve the State Implementation Plan (SIP) revision, submitted under a cover letter dated June 23, 2017, by the Commonwealth of Kentucky, through the Kentucky Division for Air Quality (KDAQ) on behalf of the Louisville Metro Air Pollution Control District (District or Jefferson County) to EPA, for attaining the 1-hour sulfur dioxide (SO<INF>2</INF>) primary national ambient air quality standard (NAAQS) for the Jefferson County SO<INF>2</INF> nonattainment area (hereafter referred to as the ``Jefferson County nonattainment area,'' ``nonattainment Area'' or ``Area''). The Jefferson County nonattainment area is comprised of a portion of Jefferson County in Kentucky surrounding the Louisville Gas and Electric Mill Creek Electric Generating Station (hereafter referred to as ``Mill Creek'' or ``LG&E''). This plan (hereafter called a ``nonattainment plan'' or ``SIP'' or ``attainment SIP'') includes Kentucky's attainment demonstration and other elements required under the Clean Air Act (CAA or Act). In addition to an attainment demonstration, the plan addresses the requirement for meeting reasonable further progress (RFP) toward attainment of the NAAQS, reasonably available control measures and reasonably available control technology (RACM/RACT), base-year and projection-year emissions inventories, enforceable emission limits, nonattainment new source review (NNSR) and contingency measures. EPA proposes to conclude that Kentucky has appropriately demonstrated that the nonattainment plan provisions provide for attainment of the 2010 1- hour primary SO<INF>2</INF> NAAQS in the Jefferson County nonattainment area by the applicable attainment date and that the nonattainment plan meets the other applicable requirements under CAA.

Federal Register, Volume 83 Issue 218 (Friday, November 9, 2018)
[Federal Register Volume 83, Number 218 (Friday, November 9, 2018)]
[Proposed Rules]
[Pages 56002-56015]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-24582]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2017-0625; FRL-9986-36-Region 4]


Air Plan Approval; Kentucky; Attainment Plan for Jefferson County 
SO2 Nonattainment Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve the State Implementation Plan (SIP) revision, submitted under a 
cover letter dated June 23, 2017, by the Commonwealth of Kentucky, 
through the Kentucky Division for Air Quality (KDAQ) on behalf of the 
Louisville Metro Air Pollution Control District (District or Jefferson 
County) to EPA, for attaining the 1-hour sulfur dioxide 
(SO2) primary national ambient air quality standard (NAAQS) 
for the Jefferson County SO2 nonattainment area (hereafter 
referred to as the ``Jefferson County nonattainment area,'' 
``nonattainment Area'' or ``Area''). The Jefferson County nonattainment 
area is comprised of a portion of Jefferson County in Kentucky 
surrounding the Louisville Gas and Electric Mill Creek Electric 
Generating Station (hereafter referred to as ``Mill Creek'' or 
``LG&E''). This plan (hereafter called a ``nonattainment plan'' or 
``SIP'' or ``attainment SIP'') includes Kentucky's attainment 
demonstration and other elements required under the Clean Air Act (CAA 
or Act). In addition to an attainment demonstration, the plan addresses 
the requirement for meeting reasonable further progress (RFP) toward 
attainment of the NAAQS, reasonably available control measures and 
reasonably available control technology (RACM/RACT), base-year and 
projection-year emissions inventories, enforceable emission limits, 
nonattainment new source review (NNSR) and contingency measures. EPA 
proposes to conclude that Kentucky has appropriately demonstrated that 
the nonattainment plan provisions provide for attainment of the 2010 1-
hour primary SO2 NAAQS in the Jefferson County nonattainment 
area by the applicable attainment date and that the nonattainment plan 
meets the other applicable requirements under CAA.

DATES: Comments must be received on or before December 10, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2017-0625 at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. 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. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Richard Wong, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW, Atlanta, Georgia 
30303-8960. Mr. Wong can be reached via telephone at (404) 562-8726 or 
via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Requirement for Kentucky to Submit an SO2 Attainment 
Plan for the Jefferson County Area
II. Requirements for SO2 Attainment Plans
III. Attainment Demonstration and Longer Term Averaging
IV. Review of Attainment Plan Requirements
    A. Emission Inventory
    B. Attainment Modeling Demonstration
    1. Model Selection
    2. Meteorological Data
    3. Emissions Data
    4. Emission Limits
    i. Enforceability
    ii. Longer Term Average Limits
    5. Background Concentration
    6. Summary of Modeling Results
    C. RACM/RACT
    D. New Source Review (NSR)
    E. Reasonable Further Progress (RFP)

[[Page 56003]]

    F. Contingency Measures
V. Incorporation by Reference
VI. EPA's Proposed Action
VII. Statutory and Executive Orders

I. Requirements for Kentucky to Submit an SO2 Plan for the Jefferson 
County Area.

    On June 22, 2010 (75 FR 35520), EPA promulgated a new 1-hour 
primary SO2 NAAQS of 75 parts per billion (ppb), which is 
met at an ambient air quality monitoring site when the 3-year average 
of the annual 99th percentile of daily maximum 1-hour average 
concentrations does not exceed 75 ppb, as determined in accordance with 
Appendix T of 40 CFR part 50. See 40 CFR 50.17(a)-(b). On August 5, 
2013 (78 FR 47191), EPA designated a first set of 29 areas of the 
country as nonattainment for the 2010 SO2 NAAQS. See 40 CFR 
part 81, subpart C. These designations included the Jefferson County 
nonattainment area, which encompasses the primary SO2 
emitting source Mill Creek and the nearby Watson Lane SO2 
monitor (Air Quality Site (AQS) ID: 21-11-0051). These area 
designations were effective October 4, 2013. Section 191 of the CAA 
directs states to submit SIPs for areas designated as nonattainment for 
the SO2 NAAQS to EPA within 18 months of the effective date 
of the designation, i.e., by no later than April 4, 2015, in this case. 
Under CAA section 192(a), these SIPs are required to demonstrate that 
their respective areas will attain the NAAQS as expeditiously as 
practicable, but no later than 5 years from the effective date of 
designation, which is October 4, 2018.
    For the Jefferson County nonattainment area (and many other areas), 
EPA published a notice on March 18, 2016 (81 FR 14736), that Kentucky 
(and other pertinent states) had failed to submit the required 
SO2 nonattainment plan by the submittal deadline. This 
finding initiated a deadline under CAA section 179(a) for the potential 
imposition of NSR offset and highway funding sanctions. However, 
pursuant to Kentucky's submittal of June 23, 2017,\1\ and EPA's 
subsequent letter dated October 10, 2017, to Kentucky finding the 
submittal to be complete and noting the termination of these sanctions 
deadlines, these sanctions under section 179(a) were not and will not 
be imposed as a result of Kentucky having missed the April 4, 2015, 
submittal deadline. Under CAA section 110(c), EPA's March 18, 2016, 
finding also triggered a requirement that EPA promulgate a federal 
implementation plan (FIP) within two years of the finding unless, by 
that time (a) the state has made the necessary complete submittal and 
(b) EPA has approved the submittal as meeting applicable requirements. 
EPA's FIP duty will be terminated if EPA issues a final approval of 
Kentucky's SIP revision.
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    \1\ EPA received Kentucky's submittal on July 6, 2017.
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II. Requirements for SO2 Nonattainment Area Plans

    Nonattainment areas must provide SIPs meeting the applicable 
requirements of the CAA, and specifically CAA sections 110(a), 172, 191 
and 192 for the SO2 NAAQS. EPA's regulations governing 
nonattainment SIPs are set forth at 40 CFR part 51, with specific 
procedural requirements and control strategy requirements residing at 
subparts F and G, respectively. Soon after Congress enacted the 1990 
Amendments to the CAA, EPA issued general guidance on SIPs, in a 
document entitled the ``General Preamble for the Implementation of 
Title I of the Clean Air Act Amendments of 1990,'' published at 57 FR 
13498 (April 16, 1992) (General Preamble). Among other things, the 
General Preamble addressed SO2 SIPs and fundamental 
principles for SIP control strategies. Id., at 13545-49, 13567-68. On 
April 23, 2014, EPA issued guidance for meeting the statutory 
requirements in SO2 SIPs under the 2010 primary NAAQS, in a 
document entitled, ``Guidance for 1-Hour SO2 Nonattainment 
Area SIP Submissions,'' available at https://www.epa.gov/sites/production/files/2016-06/documents/20140423guidance_nonattainment_sip.pdf (hereafter referred to as 
SO2 nonattainment guidance). In this guidance, EPA described 
the statutory requirements for SO2 SIPs for nonattainment 
areas, which include: An accurate emissions inventory of current 
emissions for all sources of SO2 within the nonattainment 
area; an attainment demonstration; demonstration of RFP; implementation 
of RACM (including RACT); NNSR; enforceable emissions limitations and 
control measures; and adequate contingency measures for the affected 
area.
    For EPA to fully approve a SIP as meeting the requirements of CAA 
sections 110, 172 and 191-192, and EPA's regulations at 40 CFR part 51, 
the SIP for the affected area needs to demonstrate to EPA's 
satisfaction that each of the aforementioned requirements have been 
met. Under CAA sections 110(l) and 193, EPA may not approve a SIP that 
would interfere with any applicable requirement concerning NAAQS 
attainment and RFP, or any other applicable requirement, and no 
requirement in effect (or required to be adopted by an order, 
settlement, agreement, or plan in effect before November 15, 1990) in 
any area which is a nonattainment area for any air pollutant, may be 
modified in any manner unless it insures equivalent or greater emission 
reductions of such air pollutant. EPA is proposing to approve 
Kentucky's June 23, 2017, SO2 attainment SIP for the 
Jefferson County nonattainment area because EPA has preliminarily 
determined that the plan satisfies the aforementioned CAA and 
regulatory requirements for nonattainment areas. Furthermore, EPA notes 
that current 2015-2017 quality-assured and certified data for the 
Watson Lane monitor (AQS ID: AQS ID: 21-11-0051) in the nonattainment 
area indicates a design value below the 1-hour SO2 standard.

III. Attainment Demonstration and Longer Term Averaging

    CAA sections 172(c)(1) and (6) direct states with areas designated 
as nonattainment to demonstrate that the submitted plan provides for 
attainment of the NAAQS. 40 CFR part 51, subpart G further delineates 
the control strategy requirements that SIPs must meet, and EPA has long 
required that all SIPs and control strategies reflect four fundamental 
principles of quantification, enforceability, replicability, and 
accountability. General Preamble, at 13567-68. SO2 
attainment plans must consist of two components: (1) Emission limits 
and other control measures that assure implementation of permanent, 
enforceable and necessary emission controls, and (2) a modeling 
analysis which meets the requirements of 40 CFR part 51, Appendix W 
which demonstrates that these emission limits and control measures 
provide for timely attainment of the primary SO2 NAAQS as 
expeditiously as practicable, but by no later than the CAA maximum 
attainment date for the affected area. In all cases, the emission 
limits and control measures must be accompanied by appropriate methods 
and conditions to determine compliance with the respective emission 
limits and control measures and must be quantifiable (i.e., a specific 
amount of emission reduction can be ascribed to the measures), fully-
enforceable (specifying clear, unambiguous and measurable requirements 
for which compliance can be practicably determined), replicable (the 
procedures for determining compliance are sufficiently specific and 
non-subjective so that two independent entities applying the procedures 
would obtain the same result), and accountable

[[Page 56004]]

(source specific limits must be permanent and must reflect the 
assumptions used in the SIP demonstrations).
    EPA's April 2014 SO2 nonattainment guidance recommends 
that the emission limits be expressed as short-term average limits 
(e.g., addressing emissions averaged over one or three hours), but also 
describes the option to establish emission limits with longer averaging 
times of up to 30 days so long as the limits meet certain recommended 
criteria. See SO2 nonattainment guidance, pp. 22 to 39. The 
guidance recommends that--should states and sources utilize longer 
averaging times--the longer term average limit should be a lower-
adjusted level that reflects a stringency comparable to the 1-hour 
average limit at the critical emission value (CEV) shown by modeling to 
provide for attainment that the plan otherwise would have set.
    EPA's SO2 nonattainment guidance provides an extensive 
discussion of EPA's rationale for concluding that appropriately set 
comparably stringent limitations based on averaging times as long as 30 
days can be found to provide for attainment of the 2010 SO2 
NAAQS. In evaluating this option, EPA considered the nature of the 
standard, conducted detailed analyses of the impact concerning the use 
of 30-day average limits on the prospects for attaining the standard, 
and carefully reviewed how best to achieve an appropriate balance among 
the various factors that warrant consideration in judging whether a 
state's plan provides for attainment. Id. at pp. 22 to 39. See also id. 
at Appendices B, C, and D.
    As specified in 40 CFR 50.17(b), the 1-hour primary SO2 
NAAQS is met at an ambient air quality monitoring site when the 3-year 
average of the annual 99th percentile of daily maximum 1-hour average 
concentrations is less than or equal to 75 ppb. In a year with 365 days 
of valid monitoring data, the 99th percentile would be the fourth 
highest daily maximum 1-hour value. The 2010 SO2 NAAQS, 
including this form of determining compliance with the standard, was 
upheld by the U.S. Court of Appeals for the District of Columbia 
Circuit in Nat'l Envt'l Dev. Ass'n's Clean Air Project v. EPA, 686 F.3d 
803 (D.C. Cir. 2012). Because the standard has this form, a single 
hourly exceedance of the 75-ppb level does not create a violation of 
the standard. Instead, at issue is whether a source operating in 
compliance with a properly set longer term average could cause 
exceedances, and if so the resulting frequency and magnitude of such 
exceedances, and in particular, whether EPA can have reasonable 
confidence that a properly set longer term average limit will provide 
that the 3-year average of the annual fourth highest daily maximum 1-
hour value will be at or below 75 ppb. A synopsis of how EPA judges 
whether such plans ``provide for attainment,'' based on modeling of 
projected allowable emissions and in light of the SO2 NAAQS 
form for determining attainment at monitoring sites, follows.
    For SO2 plans that are based on 1-hour emission limits, 
the standard approach is to conduct modeling using fixed emission 
rates. The maximum emission rate that would be modeled to result in 
attainment (i.e., in an ``average year'' \2\ shows three, not four days 
with maximum hourly levels exceeding 75 ppb) is labeled the ``critical 
emission value.'' The modeling process for identifying this critical 
emissions value inherently considers the numerous variables that affect 
ambient concentrations of SO2, such as meteorological data, 
background concentrations, and topography. In the standard approach, 
the state would then provide for attainment by setting a continuously 
applicable 1-hour emission limit at this critical emission value.
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    \2\ An ``average year'' is used to mean a year with average air 
quality. While 40 CFR 50 Appendix T provides for averaging three 
years of 99th percentile daily maximum hourly values (e.g., the 
fourth highest maximum daily hourly concentration in a year with 365 
days with valid data), this discussion and an example below uses a 
single ``average year'' to simplify the illustration of relevant 
principles.
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    EPA recognizes that some sources have highly variable emissions, 
for example due to variations in fuel sulfur content and operating 
rate, that can make it extremely difficult, even with a well-designed 
control strategy, to ensure in practice that emissions for any given 
hour do not exceed the critical emission value. EPA also acknowledges 
the concern that longer term emission limits can allow short periods 
with emissions above the ``critical emission value,'' which, if 
coincident with meteorological conditions conducive to high 
SO2 concentrations, could in turn create the possibility of 
a NAAQS exceedance occurring on a day when an exceedance would not have 
occurred if emissions were continuously controlled at the level 
corresponding to the critical emission value. However, for several 
reasons, EPA believes that the approach recommended in its guidance 
document suitably addresses this concern. First, from a practical 
perspective, EPA expects the actual emission profile of a source 
subject to an appropriately set longer term average limit to be similar 
to the emission profile of a source subject to an analogous 1-hour 
average limit. EPA expects this similarity because it has recommended 
that the longer term average limit be set at a level that is comparably 
stringent to the otherwise applicable 1-hour limit (reflecting a 
downward adjustment from the critical emissions value) and that takes 
the source's emissions profile into account. As a result, EPA expects 
either form of emission limit to yield comparable air quality.
    Second, from a more theoretical perspective, EPA has compared the 
likely air quality with a source having maximum allowable emissions 
under an appropriately set longer term limit, to the likely air quality 
with the source having maximum allowable emissions under the comparable 
1-hour limit. In this comparison, in the 1-hour average limit scenario, 
the source is presumed at all times to emit at the critical emission 
level, and in the longer term average limit scenario the source is 
presumed to occasionally emit more than the critical emission value but 
on average, and presumably at most times, to emit well below the 
critical emission value. In an ``average year,'' compliance with the 1-
hour limit is expected to result in three exceedance days (i.e., three 
days with hourly values above 75 ppb) and a fourth day with a maximum 
hourly value at 75 ppb. By comparison, with the source complying with a 
longer term limit, it is possible that additional exceedances would 
occur that would not occur in the 1-hour limit scenario (if emissions 
exceed the critical emission value at times when meteorology is 
conducive to poor air quality). However, this comparison must also 
factor in the likelihood that exceedances that would be expected in the 
1-hour limit scenario would not occur in the longer term limit 
scenario. This result arises because the longer term limit requires 
lower emissions most of the time (because the limit is set well below 
the critical emission value), so a source complying with an 
appropriately set longer term limit is likely to have lower emissions 
at critical times than would be the case if the source were emitting as 
allowed with a 1-hour limit.
    As a hypothetical example to illustrate these points, suppose a 
source that always emits 1000 pounds of SO2 per hour, which 
results in air quality at the level of the NAAQS (i.e., results in a 
design value of 75 ppb). Suppose further that in an ``average year,'' 
these emissions cause the 5-highest maximum daily average 1-hour 
concentrations to be 100 ppb, 90 ppb, 80 ppb, 75 ppb, and 70 ppb. Then 
suppose that the source becomes subject to a 30-day average emission 
limit of 700 pounds per hour

[[Page 56005]]

(lb/hr). It is theoretically possible for a source meeting this limit 
to have emissions that occasionally exceed 1000 lb/hr, but with a 
typical emissions profile, emissions would much more commonly be 
between 600 and 800 lb/hr. In this simplified example, assume a zero-
background concentration, which allows one to assume a linear 
relationship between emissions and air quality. (A nonzero background 
concentration would make the mathematics more difficult but would give 
similar results.) Air quality will depend on what emissions happen on 
what critical hours, but suppose that emissions at the relevant times 
on these 5 days are 800 lb/hr, 1100 lb/hr, 500 lb/hr, 900 lb/hr, and 
1200 lb/hr, respectively. (This is a conservative example because the 
average of these emissions, 900 lb/hr, is well over the 30-day average 
emission limit.) These emissions would result in daily maximum 1-hour 
concentrations of 80 ppb, 99 ppb, 40 ppb, 67.5 ppb, and 84 ppb. In this 
example, the fifth day would have an exceedance that would not 
otherwise have occurred, but the third day would not have an exceedance 
that otherwise would have occurred, and the fourth day would have a 
concentration below, rather than at, 75 ppb. In this example, the 
fourth highest maximum daily concentration under the 30-day average 
would be 67.5 ppb.
    This simplified example illustrates the findings of a more 
complicated statistical analysis that EPA conducted using a range of 
scenarios using actual plant data. As described in Appendix B of EPA's 
SO2 nonattainment guidance, EPA found that the requirement 
for lower average emissions is highly likely to yield better air 
quality than is required with a comparably stringent 1-hour limit. 
Based on analyses described in Appendix B of its nonattainment 
guidance, EPA expects that an emission profile with maximum allowable 
emissions under an appropriately set comparably stringent 30-day 
average limit is likely to have the net effect of having a lower number 
of exceedances and better air quality than an emission profile with 
maximum allowable emissions under a 1-hour emission limit at the 
critical emission value. This result provides a compelling policy 
rationale for allowing the use of a longer averaging period, in 
appropriate circumstances where the facts indicate this result can be 
expected to occur.
    The question then becomes whether this approach--which is likely to 
produce a lower number of overall exceedances even though it may 
produce some unexpected exceedances above the critical emission value--
meets the requirements in sections 110(a)(1) and 172(c)(1) and (6) for 
SIPs to contain enforceable emissions limitations and other control 
measures to ``provide for attainment'' of the NAAQS. For 
SO2, as for other pollutants, it is generally impossible to 
design a nonattainment plan in the present that will guarantee that 
attainment will occur in the future. A variety of factors can cause a 
well-designed attainment plan to fail and unexpectedly not result in 
attainment, for example if meteorology occurs that is more conducive to 
poor air quality than was anticipated in the plan. Therefore, in 
determining whether a plan meets the requirement to provide for 
attainment, EPA's task is commonly to judge not whether the plan 
provides absolute certainty that attainment will in fact occur, but 
rather whether the plan provides an adequate level of confidence of 
prospective NAAQS attainment. From this perspective, in evaluating use 
of a 30-day average limit, EPA must weigh the likely net effect on air 
quality. Such an evaluation must consider the risk that occasions with 
meteorology conducive to high concentrations will have elevated 
emissions leading to exceedances that would not otherwise have 
occurred, and must also weigh the likelihood that the requirement for 
lower emissions on average will result in days not having exceedances 
that would have been expected with emissions at the critical emissions 
value. Additional policy considerations, such as in this case the 
desirability of accommodating real world emissions variability without 
significant risk of violations, are also appropriate factors for EPA to 
weigh in judging whether a plan provides a reasonable degree of 
confidence that the plan will lead to attainment. Based on these 
considerations, especially given the high likelihood that a 
continuously enforceable limit averaged over as long as 30 days, 
determined in accordance with EPA's nonattainment guidance, will result 
in attainment, EPA believes as a general matter that such limits, if 
appropriately determined, can reasonably be considered to provide for 
attainment of the 2010 SO2 NAAQS.
    The SO2 nonattainment guidance offers specific 
recommendations for determining an appropriate longer term average 
limit. The recommended method starts with determination of the 1-hour 
emission limit that would provide for attainment (i.e., the critical 
emission value), and applies an adjustment factor to determine the 
(lower) level of the longer term average emission limit that would be 
estimated to have a degree of stringency comparable to the otherwise 
necessary 1-hour emission limit. This method uses a database of 
continuous emission data reflecting the type of control that the source 
will be using to comply with the SIP emission limits, which (if 
compliance requires new controls) may require use of an emission 
database from another source. The recommended method involves using 
these data to compute a complete set of emission averages, computed 
according to the averaging time and averaging procedures of the 
prospective emission limitation. In this recommended method, the ratio 
of the 99th percentile among these long-term averages to the 99th 
percentile of the 1-hour values represents an adjustment factor that 
may be multiplied by the candidate 1-hour emission limit to determine a 
longer term average emission limit that may be considered comparably 
stringent.\3\ The guidance also addresses a variety of related topics, 
such as the potential utility of setting supplemental emission limits, 
such as mass-based limits, to reduce the likelihood and/or magnitude of 
elevated emission levels that might occur under the longer term 
emission rate limit.
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    \3\ For example, if the critical emission value is 1000 pounds 
of SO2 per hour, and a suitable adjustment factor is 
determined to be 70 percent, the recommended longer term average 
limit would be 700 lb/hr.
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    Preferred air quality models for use in regulatory applications are 
described in Appendix A of EPA's Guideline on Air Quality Models (40 
CFR part 51, Appendix W), also referred to as Guideline. In 2005, EPA 
promulgated AERMOD as the Agency's preferred near-field dispersion 
modeling for a wide range of regulatory applications addressing 
stationary sources (for example in estimating SO2 
concentrations) in all types of terrain based on extensive 
developmental and performance evaluation. Supplemental guidance on 
modeling for purposes of demonstrating attainment of the SO2 
NAAQS is provided in Appendix A to the SO2 nonattainment 
guidance document referenced above. Appendix A provides extensive 
guidance on the modeling domain, the source inputs, assorted types of 
meteorological data, and background concentrations. Consistency with 
the recommendations in this guidance is generally necessary for the 
attainment demonstration to offer adequately reliable assurance that 
the plan provides for attainment.
    As stated previously, attainment demonstrations for the 2010 1-hour 
primary SO2 NAAQS must demonstrate future attainment and 
maintenance of

[[Page 56006]]

the NAAQS in the entire area designated as nonattainment (i.e., not 
just at the violating monitor) by using air quality dispersion modeling 
(see Appendix W to 40 CFR part 51) to show that the mix of sources and 
enforceable control measures and emission rates in an identified area 
will not lead to a violation of the SO2 NAAQS. For a short-
term (i.e., 1-hour) standard, EPA believes that dispersion modeling of 
stationary sources as applied consistent with EPA's Guideline is 
technically appropriate, efficient and effective in demonstrating 
attainment in nonattainment areas because it appropriately takes into 
consideration combinations of meteorological and emission source 
operating conditions that may contribute to peak ground-level 
concentrations of SO2. The SIP modeling should follow 
requirements in the Guideline for conducting a cumulative impact 
assessment and, thus, should use EPA's preferred dispersion model, the 
AERMOD modeling system (or approved alternative model) and follow 
Section 8 of the Guideline in terms of characterizing contributions to 
total concentrations.

IV. Review of Attainment Plan Requirements

A. Emissions Inventory

    The emissions inventory and source emission rate data for an area 
serve as the foundation for air quality modeling and other analyses 
that enable states to: (1) Estimate the degree to which different 
sources within a nonattainment area contribute to violations within the 
affected area; and (2) Assess the expected improvement in air quality 
within the nonattainment area due to the adoption and implementation of 
control measures. As noted above, the state must develop and submit to 
EPA a comprehensive, accurate and current inventory of actual emissions 
from all sources of SO2 emissions in each nonattainment 
area, as well as any sources located outside the nonattainment area 
which may affect attainment in the area. See CAA section 172(c)(3) and 
(4) and EPA's SO2 nonattainment guidance.
    The base year inventory establishes a baseline that is used to 
evaluate emission reductions achieved by the control strategy and to 
assess reasonable further progress requirements. Kentucky used 2011 as 
the base year for emission inventory preparation. At the time of 
preparation of the attainment SIP, 2011 reflected the most recent 
triennial National Emission Inventory (NEI v2),\4\ Version 2 supported 
the requirement for timeliness of data, and was also representative of 
a year with violations of the primary SO2 NAAQS (i.e., one 
of the 3-years for which EPA designated the area nonattainment).
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    \4\ 2011 NEI Data--https://www.epa.gov/air-emissions-inventories/2011-national-emissions-inventory-nei-data (accessed 
January 31, 2017).
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    For the base-year inventory, Kentucky reviewed and compiled county-
level actual SO2 emissions for all source categories (i.e., 
point, mobile (on-road and non-road), area (non-point) and event 
(wildfires and prescribed burns)) in Jefferson County and then utilized 
county and partial county (the portion in the nonattainment area) 
population and land use data to determine estimated SO2 
emission inventories for sources of SO2 in the partial 
county nonattainment area. The emissions inventory provided in the June 
23, 2017, submission reflects the most current emissions profile for 
all source categories. Additionally, EPA has provided supplemental 
emissions information to accurately account for point source emissions 
for the County. In Jefferson County, point sources account for 
approximately 99 percent of the total county-level SO2 
emissions. Kentucky provided an SO2 emission inventory for 
those point sources in the County that emitted over 10 tons per year 
(tpy) based on the 2011 NEI. Table 1 below shows county-level 
SO2 emissions that emitted greater than 10 tpy in 2011.

   Table 1--Jefferson County 2011 Base Year Point Source SO2 Emission
                                Inventory
                                  (tpy)
------------------------------------------------------------------------
                                                           SO2 Emissions
                Plant/facility site name                       (tpy)
 
------------------------------------------------------------------------
Louisville Gas & Electric--Mill Creek...................       29,944.72
Louisville Gas & Electric--Cane Run.....................        7,823.72
Louisville Medical Center Steam Plant...................          475.90
Brown-Forman/Early Times................................          257.81
Cemex (Kosmos) Cement Company Inc.......................          187.47
American Synthetic Rubber Company.......................          136.87
Louisville International Airport........................          136.19
Rohm and Haas Company...................................           28.44
                                                         ---------------
    Total emissions for sources greater than 10 tpy.....   \5\ 38,991.12
Other SO2 sources.......................................           19.24
                                                         ---------------
        Total...........................................       39,010.37
------------------------------------------------------------------------

    The primary SO2-emitting point source located within the 
partial county nonattainment area is LG&E's Mill Creek Generating 
Station (Mill Creek). Mill Creek consists of four coal-fired boilers 
(U1-U4). A breakdown of the actual 2011 emissions by unit in tpy are as 
follows: Unit 1--5,211 tpy; Unit 2--6,802 tpy; Unit 3--7,175 tpy and 
Unit 4--10,756 tpy. LG&E replaced the existing wet Flue Gas 
Desulfurization (FGD) control equipment with more efficient FGD 
controls, to comply with the mercury air toxics standard (MATS). These 
replacements have been operational for all four units as of June 8, 
2016. Mill Creek is the only SO2 point source located in the 
partial nonattainment area that is listed in Table 1. Refer to sections 
IV.B.4 and IV.C for more information on Mill Creek and the 1-hour 
SO2 control strategy.
---------------------------------------------------------------------------

    \5\ The 39,010.37 total SO2 point source emissions in 
Table 1 above is the supplemented comprehensive county-level base 
year SO2 point source emission inventory. EPA notes that 
the Table 1 total county-level 2011 SO2 point source 
emissions of 39,010.37 tons differs from the 38,854.87 tons sum of 
point source SO2 emissions listed in Table 3 of 
Kentucky's 2017 attainment SIP. Table 1 above accounts for EPA's 
review of the 2011 NEI v2 for all SO2 point sources in 
Jefferson County. The Commonwealth's Table 3 lists all point sources 
in the county that emitted over 10 tpy of SO2 which the 
Commonwealth acquired from EPA's 2011 NEI v2 on January 31, 2017. 
However, the Commonwealth's Table 3 inadvertently omits the 
Louisville International Airport point source listed in Table 1 
above. Additionally, EPA notes Table 1 above compiles all county-
level SO2 emissions from point sources according to the 
2011 NEI v2 including those point sources that emitted less than 10 
tpy while Kentucky's Table 3 accounts for those point sources that 
emitted greater than 10 tpy as indicated in the 2011 NEI v2. Lastly, 
EPA also notes the point source emissions entry in Kentucky's 
attainment SIP Table 2 is different from the sum of point source 
emissions in Kentucky's Table 3 and EPA's Table 1 total above. 
Therefore, the 39,010.37 tons of SO2 for point sources 
total in Table 1 above accounts for the comprehensive compilation of 
county-level point sources as indicated in the 2011 NEI v2.
---------------------------------------------------------------------------

    Prior to 2016, LG&E Cane Run Generating Station (Cane Run) was the 
next largest SO2 source located in the northern portion of 
the County and outside the nonattainment area. The facility had three 
boilers and reported SO2 emissions of 7,823 tons in 2011. In 
2015, LG&E constructed a new natural gas combined cycle turbine (U15) 
at the

[[Page 56007]]

Cane Run facility and shut-down coal-fired units U4 thru U8 and U10.\6\
---------------------------------------------------------------------------

    \6\ KDAQ submitted information regarding the shut-down of the 
coal-fired units U4 thru U8 and U10 and the new natural gas combined 
cycle (U15) and auxiliary unit (U16) to EPA on June 20, 2016, to 
satisfy part of its obligations under the SO2 Data 
Requirements Rule at 40 CFR 51.1203(b). The Title V operating permit 
175-00-TV(R2) established a natural gas fuel restriction for EGUs 
U15 and U16 is included in the docket for this proposal (ID: EPA-
R04-OAR-2017-0625).
---------------------------------------------------------------------------

    The CEMEX Kosmos Louisville Cement Plant (Kosmos) is outside the 
boundary of, but adjacent to, the Jefferson County nonattainment area. 
The facility produces Portland and masonry cement and has a production 
design capacity of 1.6 million short tons of cement per year. The 
primary source of the SO2 emissions are from kiln 
operations, which emitted 187 tons in 2011.
    Mill Creek is the only point source in the nonattainment area and 
the primary source of the violation at the Watson Lane monitor at the 
time of designations for the nonattainment area listed in Table 1. 
Therefore, Mill Creek was the only SO2 source the 
Commonwealth and the District considered for further evaluation 
determined to impact the nonattainment area. Cane Run, Kosmos and the 
remaining county-level point sources in Table 1 are all located outside 
of the nonattainment area and were accounted for in the attainment 
modeling through the background monitor (see section IV.B.4 below).
    KDAQ used the 2011 NEIv2 to obtain estimates of the area and 
nonroad sources. For on-road mobile source emissions, KDAQ utilized 
EPA's Motor Vehicle Emissions Simulator (MOVES2014) and NONROAD. A more 
detailed discussion of the emissions inventory development for the 
Jefferson County Area can be found in the June 23, 2017, submittal. 
Table 2 below provides Kentucky's 2011 base year county-level 
SO2 emission inventory for Jefferson County.

                                            Table 2--2011 Base Year Emissions Inventory for Jefferson County
                                                                          (tpy)
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Year                              Point           On-road          Nonroad            Area            Event            Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
2011..............................................   \7\ 39,010.37            64.20           158.75            38.28             2.61        39,274.21
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Based on an evaluation of county and partial county (nonattainment 
area) census and land use data, Kentucky determined that the 
nonattainment area accounted for 0.42 percent of the total county land 
use \8\ or a total of 1.1 tpy when applied to the county-level source 
categories in Table 2, excluding the point source category (see Table 1 
above). As noted above, Mill Creek is the only point source in the 
nonattainment area. Table 3 below shows the level of SO2 
emissions, expressed in tpy, in the partial Jefferson County 
nonattainment area for the 2011 base year by emissions source category.
---------------------------------------------------------------------------

    \7\ EPA notes that the total county-level 2011 SO2 
point source emissions of 39,010.37 tons differ from the 38,966.95 
tons sum of point source SO2 emissions listed in Table 2 
of Kentucky's 2017 attainment SIP. Table 2 above accounts for EPA's 
review of the 2011 NEI v2 for all SO2 point sources in 
Jefferson County.
    \8\ Based on the 2010 census data, the population in Jefferson 
County was 741,096 in a land area of approximately 380.42 square 
miles. At the census tract level for the county including the 
nonattainment area, roughly 8.25 square miles, the population was 
estimated to 7,170 or approximately 1 percent of the total county 
population. The nonattainment area occupies only 1.61 square miles 
of the census tracts or approximately 0.42 percent of the total land 
area.

                        Table 3--2011 Base Year Emission Inventory for the Jefferson County Partial Nonattainment Area emissions
                                                                        (tpy) \9\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Base year                           Point           On-road          Nonroad            Area            Event            Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
2011..............................................  \10\ 29,944.72             0.27             0.67             0.16             0.01        29,945.83
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The attainment demonstration also provides for a projected 2018 
attainment year inventory that includes estimated emissions for all 
emission sources of SO2 which are determined to impact the 
nonattainment area for the year in which the Area is expected to attain 
the standard. This inventory should also address any future growth in 
the Area or any potential increases in emissions of the pollutant for 
which the Jefferson County Area is nonattainment due to the 
construction and operation of new major sources, major modifications to 
existing sources, or increased minor source activity. KDAQ stated in 
its June 23, 2017, submittal that because the Area is rural and 
relatively small, it is unlikely that there will be any significant 
growth in the nonattainment area. However, the Commonwealth cites to 
the District's Regulation 2.04, Construction or Modification of Major 
Sources in or Impacting Upon Non-Attainment Areas, which requires NNSR, 
approved into the SIP and last updated on October 23, 2001 (see 66 FR 
53660). The District's SIP-approved NNSR program requires lowest 
achievable emissions rate, offsets, and public participation 
requirements for major stationary sources and major modification and 
therefore, would account for potential growth in the nonattainment 
area. Kentucky reviewed and compiled county-level actual SO2 
emissions for all source categories (i.e., point, mobile (on-road and 
non-road), area (non-point) and event) in Jefferson County and then 
utilized county and partial county nonattainment area population and 
land use data to determine estimated SO2 emission 
inventories for sources of SO2 in the nonattainment area. 
The Commonwealth developed a projected emissions inventory for county-
level SO2 emissions source categories based on the 2011 NEI 
as well as the 2008 NEI inventory to extrapolate emissions to 2018. The 
point source emissions were estimated by taking credit at Mill Creek 
for the new wet FGD controls and title V operating permit limits of 
0.20 lb/

[[Page 56008]]

MMBtu per unit based on a rolling 30-day average.\11\ Point sources in 
the County are still expected to account for approximately 99 percent 
of the total county-level SO2 emissions.\12\ Emission 
estimates for on-road sources were re-estimated with MOVES2014; nonroad 
emissions were projected using national growth factors, and area source 
emissions were scaled based on emission factors developed using the 
Annual Energy Outlook 2014 for consumption and production forecasts. 
Table 4 below provides Kentucky's 2018 projected county-level 
SO2 emission inventory for Jefferson County.
---------------------------------------------------------------------------

    \9\ Table 2 of Kentucky's 2017 attainment SIP lists the county-
level emissions. EPA applied the 0.42 percent to the county-level 
on-road, nonroad and area source categories in Table 2 to derive the 
emissions for the nonattainment area.
    \10\ Mill Creek.
    \11\ Title V operating permit 145-97-TV(R3) issued by Jefferson 
County is in the Docket (ID: EPA-R04-OAR-2017-0625) for this 
proposal action.
    \12\ Kentucky developed an adjusted 2018 projected attainment 
year inventory to account for SO2 emission reductions 
from additional point sources in the County including LG&E Mill 
Creek and Cane Run. The attainment SIP submission indicates the 
SO2 emissions reductions from sources outside of the 
nonattainment area are not required to demonstrate attainment but 
acknowledges decreases in other source SO2 point source 
emissions with the replacement from coal-fired units to other fuel 
at LG&E Cane Run, University of Louisville (99 percent decrease), 
and Duke Energy's Gallagher Electric Generating Station (92 percent 
decrease) in Floyd County, Indiana.

                                  Table 4--2018 Projected Attainment Year SO2 Emissions Inventory for Jefferson County
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Year                              Point           On-road          Nonroad            Area            Event            Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
2018..............................................       18,391.77            38.04           158.75            55.62             5.99        18,650.17
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Based on county and partial county nonattainment area census and 
land use data, similar to the base-year nonattainment area inventory, 
Kentucky applied the 0.42 percent nonattainment area land use ratio to 
the 2018 county-level projected emissions inventory in Table 4 
resulting in total of 1.06 tpy for on-road, non-road and area sources, 
excluding point source category.\13\ Table 5 below shows the level of 
emissions, expressed in tpy, in the Jefferson County nonattainment area 
for the 2018 projected attainment year inventory.
---------------------------------------------------------------------------

    \13\ Mill Creek is the only point source in the nonattainment 
Area.
---------------------------------------------------------------------------

    KDAQ provided a future year projected emissions inventory for all 
known sources included in the 2011 base year inventory, discussed 
above. The projected emissions are consistent with expected levels 
beyond October 4, 2018, when the control strategy for the attainment 
demonstration will be fully implemented. Therefore, as an annual future 
year inventory, the point source portion is reasonably estimated beyond 
October 4, 2018, and would represent an annual inventory for 2019 or 
beyond. The projected emissions in Table 2 are estimated actual 
emissions, representing a 55 percent reduction from the base year 
SO2 emissions.

                       Table 5--2018 Projected Attainment Year Emissions Inventory for Jefferson County Partial Nonattainment Area
                                                                       (tpy) \14\
--------------------------------------------------------------------------------------------------------------------------------------------------------
                       Year                              Point           On-road          Nonroad            Area            Event            Total
--------------------------------------------------------------------------------------------------------------------------------------------------------
2018..............................................          13,490             0.16             0.67             0.23             0.03        13,491.09
--------------------------------------------------------------------------------------------------------------------------------------------------------

    EPA has evaluated Kentucky's 2011 base year and projected emissions 
inventory for the Jefferson County nonattainment area and has made the 
preliminary determination that these inventories were developed 
consistent with EPA's April 2014 SO2 nonattainment guidance. 
Although EPA has noted minor discrepancies between Kentucky's inventory 
provided in the nonattainment SIP and the 2011 NEI, EPA is proposing to 
find that Kentucky's inventory is sufficiently comprehensive and 
accurate to serve the planning purposes for which the inventory is 
required. Therefore, EPA is proposing to determine the Jefferson County 
SO2 attainment SIP meets the requirements of CAA section 
172(c)(3) and (4) for the Jefferson County nonattainment area.
---------------------------------------------------------------------------

    \14\ Table 5 of Kentucky's 2017 attainment SIP lists the county-
level projected emissions. EPA applied the 0.42 percent to the 
county-level on-road, nonroad and area source categories in Table 5 
to derive the emissions for the partial county nonattainment area.
---------------------------------------------------------------------------

B. Attainment Modeling Demonstration

    The following discussion is an evaluation of various features of 
the modeling that Kentucky used in its attainment demonstration.
1. Model Selection
    Kentucky's attainment demonstration used AERMOD, the EPA's 
preferred model for this application. The Commonwealth used AERMOD 
version 15181 with regulatory default options and a rural land use 
designation. Version 15181 of the AERMOD modeling system was the 
current regulatory version at the time Kentucky was preparing the 
attainment demonstration. Appendix 3 in Kentucky's June 23, 2017, 
submittal, provides a summary of the modeling procedures and options, 
including details explaining how they applied the Auer technique to 
determine that the rural dispersion coefficients were appropriate for 
the modeling. Model receptors were located throughout the nonattainment 
area using a grid with 100 meters spacing between receptors. Receptor 
elevations and hill heights required by AERMOD were determined using 
the AERMAP terrain preprocessor version 11103. The meteorological data 
was processed using AERMET version 15181 and AERMINUTE version 15272. 
The surface characteristics around the meteorological surface station 
were determined using AERSURFACE version 13016. An analysis of Good 
Engineering Practice (GEP) stack heights and building downwash was 
performed using BPIPPRIME version 04274. The results of the downwash 
analysis show that the actual stack heights at the Mill Creek facility 
exceed the GEP heights, so the GEP stack heights for each stack were 
used in the modeling. EPA proposes to find the model selection and 
procedures used to run the model appropriate.
2. Meteorological Data
    The Commonwealth incorporated the most recently available five 
years of

[[Page 56009]]

meteorology data from 2011-2015, as measured at a spatially 
representative National Weather Service airport site. The 1-minute 
surface-level data came from the Louisville Standiford Field station in 
Louisville, Kentucky located about 20 kilometers (km) to the northeast 
of the facility. Twice daily upper-air meteorological information came 
from the Wilmington Air Park, Wilmington, Ohio station located about 
240 km to the northeast. The surface characteristics of the 
meteorological surface station were processed using AERSURFACE version 
13016 following EPA-recommended procedures and were determined to be 
representative of the facility by the Commonwealth. EPA proposes to 
find that the meteorological data selection and processing are 
appropriate.
3. Emissions Data
    As previously stated, Mill Creek is the only SO2 
emitting major point source in the nonattainment area and the only 
emission source explicitly modeled in the attainment modeling analysis 
for the Jefferson County nonattainment area. All minor area sources and 
other major point sources (located outside the nonattainment area 
boundary) were accounted for with the background concentration 
discussed in Section IV.B.5. Mill Creek operates four coal-fired boiler 
units (U1 thru U4) that emit from three stacks. Unit 1 and Unit 2 have 
a joint stack (S33) while Unit 3 and Unit 4 have separate stacks (S4 
and S34, respectively). Mill Creek replaced its wet FGD Units on all 
stacks to improve SO2 reduction efficiencies. All FGD 
construction was completed and operational by June 8, 2016.
    The Commonwealth evaluated the emissions from Mill Creek and 
derived a set of three SO2 critical emission values (CEVs), 
one for each stack, from AERMOD modeling simulations to show compliance 
with the 2010 SO2 NAAQS. The AERMOD modeling analysis 
resulted in the following CEV's: Stack S33, which serves Units 1 and 2, 
was modeled at 225.4 grams/second (g/s) equivalent to 1,789 lb/hr; 
stack S4, which serves Unit 3, was modeled at 152.6 g/s equivalent to 
1,211 lb/hr; and stack S34, which serves Unit 4, was modeled at 183.6 
g/s equivalent to 1,457 lb/hr. In each case, the modeled emission rate 
corresponds to 0.29 pounds per million British thermal units (lb/MMBtu) 
times the maximum heat input capacity (MMBtu/hr) of the unit(s) 
associated with each stack. This form of an emission limit, in lb/
MMBtu, is a frequent form of emission limit associated with electric 
generating units. The Commonwealth determined from these AERMOD 
modeling simulations that an hourly emission limit of 0.29 lb/MMBtu 
would suffice to ensure modeled attainment of the SO2 NAAQS. 
However, the Commonwealth opted to apply a 30-day average limit, 
following EPA's SO2 nonattainment guidance for setting 
longer term average limits. The Commonwealth determined that a 30-day 
average limit of 0.20 lb/MMBtu could be considered comparably stringent 
to a 1-hour limit of 0.29 lb/MMBtu. Section IV.B.4.ii below, entitled 
``Longer Term Average Limits,'' provides more discussion on how the 
Commonwealth made this determination.
4. Emission Limits
    An important prerequisite for approval of an attainment plan is 
that the emission limits that provide for attainment be quantifiable, 
fully-enforceable, replicable, and accountable. See General Preamble at 
13567-68. Therefore, part of the review of Kentucky's attainment plan 
must address the use of these limits, both with respect to the general 
suitability of using such limits for this purpose and with respect to 
whether the limits included in the plan have been suitably demonstrated 
to provide for attainment. The first subsection that follows addresses 
the enforceability of the limits in the plan, and the second subsection 
that follows addresses the 30-day average limits.
i. Enforceability
    Section 172(c)(6) provides that emission limits and other control 
measures in the attainment SIP shall be enforceable. Kentucky's 
attainment SIP for the Jefferson County nonattainment area relies on 
control measures and enforceable emission limits for the four coal-
fired boilers at Mill Creek. These emission reduction measures were 
accounted for in the attainment modeling for Mill Creek, which 
demonstrates attainment for the 2010 SO2 NAAQS. Kentucky's 
control strategy for the Jefferson County nonattainment area consists 
of replacing FGD control equipment with more efficient FGD controls at 
Mill Creek, addressing SO2 emissions for all four units (U1, 
U2, U3 and U4): Unit 4 new FGD went into service on December 9, 2014; 
Units 1 and 2 new combined FGD went into service on May 27, 2015; and 
Unit 3 new FGD went into service on June 8, 2016.
    LG&E installed wet FGD replacements at Mill Creek to comply with 
the MATS Rule.\15\ Jefferson County issued a construction permit (No. 
34595-12-C) on June 15, 2012, to LG&E authorizing the construction for 
wet FGD control equipment replacements for the four coal-fired boilers 
at the Mill Creek facility. This construction permit also included a 
0.20 lb/MMBtu limit for SO2 as a surrogate for the 
hydrochloric acid gas requirements for MATS. This emission limit was 
incorporated into the title V permit on July 31, 2014, (145-97-TV 
(R2)). LG&E was required to comply with the MATS Rule by April 
2016.\16\ Effective June 8, 2016, the Mill Creek facility completed 
installation of improved wet FGD SO2 controls on all three 
stacks, which has reduced SO2 emissions by approximately 89 
percent since 2014 emission levels.\17\
---------------------------------------------------------------------------

    \15\ On December 16, 2011, EPA established the MATS Rule to 
reduce emissions of toxic air pollutants for coal or oil power 
plants larger than 25 megawatts. The rule establishes alternative 
numeric emission standards, including SO2 (as an 
alternate to hydrochloric acid), individual non-mercury metal air 
toxics (as an alternate to particulate matter (PM)), and total non-
mercury metal air toxics (as an alternate to PM) for certain 
subcategories of power plants. CAA section 112, MACT regulations for 
coal-and oil fired EGUs, known as the Mercury and Air Toxics 
Standards, were targeted at reducing EGU emissions of HAPs (e.g., 
mercury, hydrochloric acid (HCl), hydrogen fluoride (HF), dioxin, 
and various metals) and not explicitly targeted at reducing 
emissions of SO2. Under the MATS, EGUs meeting specific 
criteria may choose to demonstrate compliance with alternative 
SO2 emission limits in lieu of demonstrating compliance 
with HCl emission limits.
    \16\ Mill Creek was required to comply with the MATS Rule by 
April 16, 2016 (extended compliance date).
    \17\ Mill Creek annual SO2 emissions have dropped, 
from 28,149 tons in 2014 to 3,040 tons in 2017. See https://ampd.epa.gov/ampd/.
---------------------------------------------------------------------------

    As discussed further in the RACT/RACM section 1V.C below, Kentucky 
determined that the wet FGD replacements at Mill Creek provide for 
SO2 emission reductions that model attainment for the 
Jefferson County nonattainment area. With respect to the 1-hour 
SO2 standard, Kentucky established an independent emission 
limit of 0.20 lb/MMBtu, for each coal-fired unit at Mill Creek on a 30-
day average basis in accordance with EPA's SO2 nonattainment 
guidance for longer term averaging time for the purpose of 
demonstrating attainment for the 1-hour SO2 standard (see 
section IV.B.4. ii). These emission limits apply independently to each 
of the four coal-fired units (U1 thru U4), which emit SO2 
from three separate stacks (S33, S4, and S34). Unit 1 and Unit 2 share 
a common stack (S33) while Unit 3 and Unit 4 have separate stacks (S4 
and S34, respectively). These SO2 limits were established in 
a revised title V operating permit 145-97-TV(R3) for Mill Creek

[[Page 56010]]

and became effective on April 5, 2017. Mill Creek demonstrates 
compliance with the 30-day emission limits through a continuous 
emission monitoring system on each stack as well as the monitoring of 
the heat input firing rate of each emission unit. The 30-day 
SO2 emission limit was established to demonstrate modeled 
attainment of the 2010 1-hour SO2 standard for the Jefferson 
County nonattainment area and therefore is separate from the 
SO2 emission limit of the same numerical value established 
to comply with the 2012 MATS Rule (i.e., SO2 as a surrogate 
for hydrochloric acid). These two limits were independently established 
through unique methodologies and guidance to address distinct and 
separate CAA requirements for the LG&E Mill Creek facility. Kentucky 
requested that EPA incorporate into the Jefferson County portion of the 
Commonwealth's SIP the 30-day SO2 emission limits and 
operating and compliance parameters (monitoring, record keeping and 
reporting) established at Plant-wide Specific condition S1-Standards, 
S2-Monitoring and Record Keeping and S3-Reporting \18\ in title V 
permit 145-97-TV(R3).\19\ The accountability of the SO2 
emission limits is established through KDAQ's request to include the 
limits in the SIP and in the attainment modeling demonstration to 
ensure permanent and enforceable emission limitations as necessary to 
provide for attainment of the 2010 SO2 NAAQS.
---------------------------------------------------------------------------

    \18\ The plant-wide specific conditions S2-Monitoring and 
Recordkeeping and S3-Reporting reference specific compliance 
parameters for the 30-day SO2 emission limit for each 
individual EGU (U1, U2, U3 and U4). Therefore, the specific 
SO2 monitoring and recordkeeping and reporting 
requirements, for each EGU are located at the Specific Conditions 
S2-Monitoring and Recordkeeping (b) and S3-Reporting (b) for 
SO2.
    \19\ EPA notes that Kentucky originally requested that EPA 
incorporate into the Kentucky SIP the per unit SO2 
emission limits for Mill Creek along with compliance parameters that 
were established in title V permit 145-97-TV(R2). However, through a 
supplement Louisville has subsequently requested EPA incorporate 
portions of permit 145-97-TV(R3) which contains the new 0.20 lb/
mmBtu per unit emission limit based on a 30-day averaging time.
---------------------------------------------------------------------------

ii. Longer Term Average Limits
    Kentucky established an emission limit of 0.20 lb/MMBtu of 
SO2 emissions, for each individual coal-fired emission unit 
at Mill Creek, on a 30-day average basis. This emission limit applies 
individually to each of the four coal-fired units (U1 thru U4), which 
emit SO2 from three stacks. Unit 1 and Unit 2 have a joint 
stack (Stack ID S33) while Unit 3 and Unit 4 each have separate stacks 
(Stack IDs S4 and S34, respectively). As discussed above in the 
emissions data section, modeling was performed by Jefferson County and 
the Commonwealth to determine an appropriate CEV, in g/s, for each of 
the three stacks (stack S33, which serves Units 1 and 2, was modeled at 
225.4 g/s; stack S4, which serves Unit 3, was modeled at 152.6 g/s; and 
stack S34, which serves Unit 4, was modeled at 183.6 g/s). The 
corresponding candidate 1-hour emission factor limits (in lb/MMBtu) may 
be calculated by first converting these g/s CEV values to lb/hr (using 
a standard unit conversion factor of 1 g/s = 7.937 lb/hr) and then 
dividing by the maximum heat input capacity of each unit, in MMBtu/hr. 
In each case, the CEV corresponds to an emission factor of 0.29 lb/
MMBtu. Since Units 1 and 2 share a stack (S33), the relevant maximum 
heat input capacity was the combined value for both units (6,170 MMBtu/
hr total). Unit 3 has a maximum heat input capacity of 4,204 MMBtu/hr 
and vents to a single stack (S4), and Unit 4 has a maximum heat input 
capacity of 5,025 MMBtu/hr and vents to a single stack (S34).
    As discussed further below, Kentucky used the procedures in EPA's 
April 2014 SO2 nonattainment guidance to determine a 
compliance ratio (adjustment factor) of 0.69, which when multiplied by 
0.29 lbs/MMBTU yields a 30-day average limit of 0.20 lbs/MMBTU. Each of 
the four emission units were subject to this 0.20 lb/MMBtu 30-day 
average permit limit effective April 5, 2017. EPA generally defines the 
term CEV to mean the 1-hour emission rate for an individual stack that, 
in combination with the other CEVs for other relevant stacks, is shown 
through proper modeling to yield attainment. As mentioned above, 
Kentucky developed a set of CEVs (one per stack) in each case 
corresponding to an hourly limit of 0.29 lb/MMBtu and demonstrated with 
AERMOD modeling that these CEVs show modeled compliance with the NAAQS. 
Unit 1 and Unit 2 have a joint stack (S33) and a combined wet FGD 
control, while Unit 3 and Unit 4 have separate stacks (S4 and S34, 
respectively), each with individual wet FGD controls.
    EPA's SO2 nonattainment guidance recommends that any 
longer term average emission limit should be comparably stringent to 
the 1-hour limit that has been shown to provide for attainment of the 
2010 SO2 standard. The guidance recommends a procedure, 
detailed in Appendix C, for determining an adjustment factor which may 
be multiplied times the candidate 1-hour limit to derive a longer term 
limit that may be estimated to be comparably stringent to the 1-hour 
limit. Using this procedure (discussed in section II above) and using 
hourly emission data provided by EPA's Air Markets Program Data 
database for Mill Creek for the period 2009-2013 (i.e., before the wet 
FGD replacements), Kentucky determined an adjustment factor of 0.69. 
Multiplication of this adjustment factor times the candidate 1-hour 
limit yielded the 0.20 lb/MMBtu 30-day average permit limit that 
Kentucky established in Mill Creek's title V permit effective April 5, 
2017. The period from 2009 to 2013 was a period of stable operation 
prior to the wet FGD replacements (which were made between late 2014 to 
mid-2016), a time when similar but less efficient wet FGDs were used 
for SO2 emission control for each coal-fired unit. EPA 
believes that these data were the best data available at the time to 
Kentucky for estimating the variability of emissions to be expected at 
Mill Creek upon compliance with the permit limits. At the time Kentucky 
conducted its assessment, only a small amount of post-replacement data 
was available. Use of a mix of pre-replacement and post-replacement 
data would have yielded a distorted analysis of variability. Therefore, 
the 2009 to 2013 data from Mill Creek provided the best representation 
available to Kentucky of the variability of emissions to be expected 
from this plant.
    Additionally, the 2009-2013 emissions data set yielded an 
adjustment factor slightly lower (more conservative) than the average 
30-day adjustment factor (0.71) included in Table 1 of Appendix D of 
EPA's SO2 nonattainment guidance for emission sources with 
wet scrubbers. The results provided in Appendix D were intended to 
provide insight into the range of adjustment factors that may be 
considered typical. For these reasons, EPA believes the 0.69 adjustment 
factor calculated by Kentucky is an appropriate estimate of the degree 
of adjustment needed to derive a comparably stringent 30-day average 
emission limit for this facility.
    In accordance with EPA's SO2 nonattainment guidance, the 
Commonwealth used the distribution of hourly emissions to determine a 
corresponding distribution of 30-operating day longer term emission 
averages at the end of each operating day. The 99th percentile of the 
1-hour average emission values and the 4th maximum value of the 30-day 
average emission values \20\ for each year were

[[Page 56011]]

calculated, then the average value of the five years' 99th percentile 
value was determined. The adjustment factor was calculated as the ratio 
of the 99th percentile for the longer term average to the 99th 
percentile hourly average emissions for each of the four boilers at 
Mill Creek, separately. The adjustment factors for each of the four 
units (0.64, 0.68, 0.75 and 0.68) were averaged together to arrive at a 
single compliance ratio of 0.69. The average compliance ratio was then 
applied to the 0.29 lb/MMBtu hourly emission rate to create a 
comparably stringent long term (30-day) emission limit of 0.20 lb/
MMBtu, which was imposed on each emission unit individually. EPA 
believes that use of an average adjustment factor is a suitable means 
of projecting future variability of the four units at the plant because 
the use of an average adjustment factor is likely to yield similar 
results to use of unit-specific adjustment factors; indeed, Kentucky 
determined that annual potential total SO2 emissions based 
on use of an average adjustment factor (with a limit of 0.20 lb/MMBtu 
for all units) are about 137 tpy less than would be allowed with limits 
of 0.29 lb/MMBtu adjusted by unit-specific adjustment factors.
---------------------------------------------------------------------------

    \20\ EPA notes that the SO2 nonattainment guidance 
recommends the compliance ratio be determined based on the 99th 
percentile of 30-day values instead of the 4th maximum value used by 
Kentucky. Kentucky also computed the compliance ratio using the 99th 
percentile and determined that the individual compliance ratios for 
each unit did not change because the 99th percentile values are 
close to the 4th maximum values.
---------------------------------------------------------------------------

    Based on a review of the Commonwealth's submittal and EPA's 
additional analysis described below, EPA believes that the 30-day 
average 0.20 lb/MMBtu limit for each of the four boilers at Mill Creek 
provides a suitable alternative to establishing a 1-hour average 
emission limit for each unit at this source. The Commonwealth has used 
a suitable data base and has derived an adjustment factor that yields 
an emission limit that has comparable stringency to the 1-hour average 
limit that Kentucky determined would otherwise have been necessary to 
provide for attainment. While the 30-day rolling average limit allows 
occasions in which emissions may be higher than the level that would be 
allowed with the 1-hour limit, the Commonwealth's limit compensates by 
requiring average emissions to be lower than the level that would 
otherwise have been required by a 1-hour average limit.
    EPA's SO2 nonattainment guidance recommends evaluating 
``whether the longer term average limit, potentially in combination 
with other limits, can be expected to constrain emissions sufficiently 
so that any occasions of emissions above the critical emission value 
will be limited in frequency and magnitude and, if they occur, would 
not be expected to result in NAAQS violations.'' For this purpose, EPA 
analyzed Air Markets Program Data available from EPA. Mill Creek 
completed replacements of the FGD equipment during the period from 
December 2014 to June 2016. EPA believes that the emissions data 
available after completion of the replacements are the data that best 
indicate the likely frequency of hourly emission levels above the 
critical emission value. At the time EPA conducted its analysis, these 
data were available through the end of March 2018. Therefore, in 
addition to the analysis submitted by Kentucky, EPA analyzed hourly 
emissions obtained from the EPA Air Markets Program Data for Mill Creek 
for the period April 2016 to March 2018,\21\ which encompasses the time 
after all the wet FGD replacements were completed and the facility was 
operating under a 0.20 lb/MMBtu emission limitation. During this time 
Units 1, 2 and 3 did not have any 30-day average values above 0.20 lb/
MMBtu, these units each had only 0.1 percent of the hours exceeding the 
``critical emission factor'' of 0.29 lb/MMBtu. Although Unit 4 slightly 
exceeded 0.20 lb/MMBtu approximately 5.4 percent of the 30-day averages 
during this period (based on Kentucky's compliance determination 
procedures), this unit only exceeded the ``critical emission factor'' 
of 0.29 lb/MMBtu for 0.5 percent of the hours. Therefore, EPA is 
proposing to conclude that Mill Creek can reasonably be expected to 
exceed the critical emission value only rarely. For details of this 
analysis, please refer to the spreadsheet titled ``Mill Creek Analysis 
of Values Above the Critical Emission Rate'' in the Docket for this 
proposal action.
---------------------------------------------------------------------------

    \21\ FGD replacements were not complete for Unit 3 until June 
2016, so the period analyzed for Unit 3 was from July 2016 to March 
2018.
---------------------------------------------------------------------------

    For reasons described above and explained in more detail in EPA's 
SO2 nonattainment guidance, EPA believes appropriately set 
longer term average limits provide a reasonable basis by which 
nonattainment plans may provide for attainment. Based on its review of 
this information as well as the information in the Commonwealth's plan, 
EPA proposes to find that the 30-day average limits for Mill Creek 
provide for attainment of the SO2 standard. Furthermore, EPA 
notes that 2015-2017 quality-assured and certified design value for the 
Watson Lane monitor (AQS ID: AQS ID: 21-11-0051) in the nonattainment 
area is 31 ppb, which is below the 1-hour SO2 standard.
    The Commonwealth requested EPA approve into the Jefferson County 
portion of the Kentucky SIP, the 30-day, 0.20 lb/MMBtu SO2 
emission limit for each boiler as well as operating and compliance 
parameters (monitoring and reporting requirements) established in Mill 
Creek's title V permit 145-97-TV (R3). EPA has evaluated these 
emissions limits and proposes to determine that these limits provide 
for attainment of the 2010 SO2 NAAQS.
5. Background Concentration
    Background concentrations of SO2 were included in the 
modeling using 2013-2015 season-by-hour monitoring data from the Green 
Valley Road monitor (AQS ID: 18-043-1004) located in New Albany, 
Indiana. Use of the season-by-hour data is one of the approaches for 
calculating background concentrations provided in the SO2 
nonattainment guidance. The season-by-hour background values ranged 
from 2.13 ppb to 20.67 ppb. This monitor is located approximately 29 km 
to the north of the Mill Creek facility in the vicinity of many 
SO2 emissions sources, including the Duke Energy Indiana, 
LLC, Gallagher Generating Station coal-fired power plant with 3,500 tpy 
of SO2 emissions in 2014, which is located approximately 5 
km upwind of the monitor. This source, along with other sources in the 
area upwind of the monitor (including numerous small area sources in 
the City of Louisville and the Louisville Gas and Electric Company, 
Cane Run Station power plant), emitted approximately 13,000 tpy of 
SO2 in 2014. The background concentrations from the Green 
Valley ambient air monitor were used by the Commonwealth to account for 
SO2 impacts from all sources besides the Mill Creek 
facility, which was explicitly modeled with AERMOD to develop an 
appropriate emissions limit. The Commonwealth evaluated other 
SO2 monitors in the Louisville area that are closer to the 
Mill Creek facility and the nonattainment area, including the Watson 
Lane (AQS ID: 21-111-0051), Cannons Lane (AQS ID: 21-111-0067) and 
Algonquin Parkway/Firearms Training (AQS ID: 21-111-1041) monitors. 
However, the Commonwealth determined that each of these monitors had 
issues with data completeness during the 2013-2015 timeframe and thus 
were not available for use in their modeling analysis.
    EPA is supplementing the attainment demonstration modeling provided 
by the Commonwealth with an independent analysis to assess the 
conclusion that the Green Valley background monitor adequately

[[Page 56012]]

represents background concentrations of SO2 within this 
nonattainment area, including the impact from Kosmos that is located 
outside but adjacent to the nonattainment area to the southeast of the 
Mill Creek facility. The Commonwealth states in its submission that the 
Green Valley monitor was determined to be the most appropriate and 
representative background monitor for the demonstration and that it 
accounts for impacts from all sources not explicitly modeled, including 
Kosmos. As described below, EPA's independent analysis supports KDAQ's 
conclusion that the Green Valley monitor adequately represents impacts 
from all unmodeled sources including those from Kosmos.
    EPA evaluated whether Kosmos, which is located in close proximity 
to the nonattainment area boundary (less than 0.50 km), should be 
considered a ``nearby source'' or an ``other source'' as these terms 
are defined in Section 8.3.1 of EPA's Guideline contained in 40 CFR 
part 51, Appendix W (Appendix W).\22\ Section 8.3.1.a.i of Appendix W 
discusses evaluating significant concentration gradient in the vicinity 
of the source under consideration for SIP emissions limits for 
determining if other sources in the area are adequately represented by 
background ambient monitoring. Section 8.3.3.b.ii of Appendix W further 
describes the assessment of concentration gradients and states that 
``the magnitude of a concentration gradient will be greatest in the 
proximity of the source and will generally not be significant at 
distances greater than 10 times the height of the stack(s) at that 
source without consideration of terrain influences.'' The height of the 
cement kiln stack at Kosmos is 75 feet (approximately 23 meters) and 
there are no significant terrain features located near Kosmos or within 
the nonattainment area boundary. Evaluating the concentration gradients 
for Kosmos using the ``10 times stack height'' general rule of thumb 
indicates that concentration gradients should be comparatively modest 
beyond 230 meters from the stack. The closest edge of the nonattainment 
boundary is approximately 480 meters from the stack, which is more than 
twice the distance of this general rule of thumb. Therefore, EPA 
believes that the SO2 emissions from Kosmos likely would not 
result in a significant concentration gradient within the nonattainment 
area boundary.
---------------------------------------------------------------------------

    \22\ EPA had previously indicated that Kosmos should be treated 
as a ``nearby source.'' This position was communicated to the 
Commonwealth in comments on the Prehearing Attainment Demonstration 
SIP in a letter dated April 18, 2017. EPA has subsequently performed 
additional analysis (discussed later in this section), and believes 
that it is appropriate to treat Kosmos as an ``other source,'' which 
can be addressed using a representative ambient background 
concentration. As an additional measure, Kentucky and Jefferson 
County have elected to conduct air quality monitoring to better 
characterize the ambient concentrations of SO2 in the 
vicinity of the Kosmos facility through an agreed Board Order with 
Kosmos. The Board Order, approved by Jefferson County Board on April 
19, 2017, requires the facility to deploy an ambient air monitor in 
accordance with 40 CFR part 58 and EPA's nonattainment guidance 
``SO2 NAAQS Designations Source-Oriented Monitoring 
Technical Assistance Document'' (Monitoring TAD February 2016) and 
includes a remediation plan indicating if monitored violations of 
the NAAQS occur, Kosmos agrees to make changes to their operations 
to prevent future violations. EPA Region 4 approved the monitor 
location in a letter dated February 1, 2018. Please see the Board 
Order located in the Docket for this proposed rule at EPA-R04-OAR-
2017-0625.
---------------------------------------------------------------------------

    EPA also evaluated whether the Green Valley background monitor data 
is adequately representative of potential SO2 concentration 
impacts from Kosmos within the nonattainment area. This evaluation 
consisted of an assessment of wind patterns in the Louisville area, the 
SO2 emissions sources in the vicinity of the Green Valley 
monitor, and comparing those sources to the Kosmos source. EPA 
evaluated wind data from 2011-2015 from the Louisville Standiford Field 
Airport to determine the predominant wind patterns. The results of this 
analysis show that winds blow predominately from the southeast, south 
and southwest directions. EPA then identified significant 
SO2 emissions sources located south, southeast and southwest 
of the Green Valley monitor. The Commonwealth used Green Valley ambient 
concentration data from the 2013-2015 time period for the background 
concentrations. Therefore, EPA used SO2 emissions data 
contained in the 2014 NEI to evaluate sources in the vicinity of the 
Green Valley monitor. EPA's evaluation of sources in the 2014 NEI found 
that a large coal fired power plant, the Duke Energy Indiana, LLC, 
Gallagher Generating Station, with SO2 emissions of 3,500 
tpy, is located approximately 5 km southwest of the Green Valley 
monitor. Also, the Louisville Gas and Electric Company, Cane Run 
Station reported 8,700 tpy of SO2 emissions in 2014 and is 
located approximately 15 km southwest of the Green Valley monitor. 
Further, the City of Louisville and its associated numerous small area 
SO2 emissions sources (e.g., diesel vehicles and generators) 
is located within 9 km southeast of the monitor. Combined, these 
sources total over 13,000 tpy of SO2 emissions (according to 
the 2014 NEI) located upwind of the monitor and contribute to the 
measured SO2 season-by-hour concentrations in 2013-2015 that 
ranged from 2.13 ppb to 20.67 ppb.
    EPA used its Emissions Inventory System (EIS) Gateway to obtain 
emissions data for Kosmos for comparison to the emissions sources 
impacting the Green Valley monitor. The EIS Gateway data for Kosmos 
show SO2 emissions of 207 tpy in 2014, 289 tpy in 2015, and 
364 tpy in 2016. These emissions data demonstrate that Kosmos' 
SO2 emissions are much less than the emissions sources that 
are contributing to the measured concentrations at the Green Valley 
background monitor. While Kosmos is located much closer to the 
nonattainment area boundary (approximately 0.5 km) than the distance 
the larger sources of emissions are from the Green Valley monitor (from 
5 km to 15 km), the sources near the Green Valley monitor have more 
than an order of magnitude more emissions than Kosmos. EPA believes 
that the net effect of these compensating differences is that the Green 
Valley monitor reasonably indicates the impact of Kosmos on the 
nonattainment area.
    Based upon EPA's analyses summarized above, EPA is proposing to 
concur with the Commonwealth's use of ambient SO2 
concentration data from the Green Valley monitor to account for 
potential impacts from Kosmos and all other emissions sources located 
outside the nonattainment area that were not explicitly modeled in the 
attainment demonstration modeling analysis.
6. Summary of Modeling Results
    The AERMOD modeling resulted in a maximum modeled design value of 
190.1 micrograms per cubic meter or 72.6 ppb, including the background 
concentration, which is below the 1-hour SO2 NAAQS of 75 
ppb. As discussed above, the AERMOD modeling used hourly SO2 
emissions for each stack equivalent to the hourly SO2 
emission rate of 0.29 lb/MMBtu, which was used to derive the 30-day 
average emission limit for the four coal-fired boilers at the Mill 
Creek facility. Effective June 8, 2016, the Mill Creek facility 
completed installation of improved wet FGD SO2 controls on 
all three stacks, and became subject the new 30-day SO2 
emission limits on April 5, 2017, which has reduced SO2 
emissions by approximately 89 percent from 2014 emission levels.\23\ 
Furthermore, the Watson Lane

[[Page 56013]]

monitoring data trends during the timeframe corroborate the significant 
SO2 reductions from Mill Creek facility, supporting EPA's 
view that limiting Mill Creek emissions adequately will assure 
attainment. EPA has evaluated the modeling procedures, inputs and 
results and proposes to find that the results of the Commonwealth's 
modeling analysis demonstrate that the limits on Mill Creek assure that 
there will be no violations of the NAAQS within the nonattainment area.
---------------------------------------------------------------------------

    \23\ Mill Creek annual SO2 emissions have dropped, 
from 28,149 tons in 2014 to 3,040 tons in 2017. See https://ampd.epa.gov/ampd/.
---------------------------------------------------------------------------

C. RACM/RACT

    CAA section 172(c)(1) requires that each attainment plan provide 
for the implementation of all RACM as expeditiously as practicable 
(including such reductions in emissions from existing sources in the 
area as may be obtained through the adoption, at a minimum, of RACT) 
and shall provide for attainment of the NAAQS. Additionally, 172(c)(6) 
require SIPs to contain enforceable emissions limitations and other 
control measures to ``provide for attainment'' of the NAAQS. EPA 
interprets RACM, including RACT, under section 172, as measures that a 
state determines to be reasonably available and which contribute to 
attainment as expeditiously as practicable for existing sources in the 
area.
    Kentucky's plan for attaining the 1-hour SO2 NAAQS in 
the Jefferson County SO2 nonattainment area included a 
review of three control measures as potential options which could be 
implemented at Mill Creek to reduce ambient SO2 
concentrations and attain the SO2 NAAQS: More efficient 
scrubber operation; increased stack height; and restriction of high 
sulfur fuels. The Commonwealth in coordination with the District 
determined that FGD is the appropriate control strategy and represents 
RACT/RACM for the nonattainment area. The new controls increase Mill 
Creek's ability to control SO2 emissions from previously 
permitted levels, i.e., around 90 percent, to a 98 percent removal 
rate. Emissions are expected to be reduced from actual emissions of 
29,994 tpy in 2011 to a projected post-control level of 13,489.5 tpy. 
Effective June 8, 2016, the Mill Creek facility completed installation 
of improved wet FGD SO2 controls on all three stacks, and 
became subject the new 30-day SO2 emission limits on April 
5, 2017 (discussed in section IV.B.4 above). The replaced FGD controls 
and April 5, 2017 compliance with the 30-day SO2 emission 
limits has resulted in reduced SO2 emissions at Mill Creek 
by approximately 89 percent since 2014 emission levels.\24\ 
Furthermore, the monitoring data trends during the time period 
corroborate the existence of the substantial air quality benefits from 
the significant SO2 reductions from Mill Creek facility. The 
Watson Lane monitor has recorded decreasing SO2 
concentrations from an annual 99th percentile value of 148.6 ppb in 
2014, 54.2 ppb in 2015, 26.1 ppb in 2016 and 13.7 ppb in 2017. 
Currently, the quality-assured and certified 2015-2017, 3-year design 
value for the Watson Lane monitor is 31 ppb, which is well below the 1-
hour SO2 standard. In addition to the modeling demonstrating 
attainment of the SO2 standard, actual monitored 99th 
percentile of 1-hour daily maximum concentrations at the Watson Lane do 
not show violations of the NAAQS. On this basis, Jefferson County 
determined that no additional measures could contribute to attainment 
as expeditiously as practicable. Therefore, the FGD controls for the 
Mill Creek Generating Station was determined to constitute RACT/RACM 
for the nonattainment area. Kentucky has determined that these measures 
suffice to provide for timely attainment. EPA preliminarily concurs 
with Kentucky's approach and analysis, and proposes to conclude that 
the Commonwealth has satisfied the requirement in section 172(c)(1) and 
(6) to adopt and submit all RACT/RACM and emission limitations and 
control measures as needed to attain the standard as expeditiously as 
practicable.
---------------------------------------------------------------------------

    \24\ According to the CAMD data, Mill Creek annual 
SO2 emissions have dropped, from 28,149 tons in 2014 to 
3,040 tons in 2017. See https://ampd.epa.gov/ampd/.
---------------------------------------------------------------------------

D. New Source Review (NSR)

    EPA last approved Louisville's NNSR regulations 2.04--Construction 
or Modification of Major Sources in or Impacting upon Non-Attainment 
Areas (Emissions Offset Requirements) on October 23, 2001 (66 FR 
53660). These rules provide for appropriate NSR for SO2 
sources undergoing construction or major modification in any 
nonattainment area in Jefferson County including the SO2 
nonattainment area without need for modification of the approved rules. 
Therefore, EPA proposes to conclude that this requirement is met for 
this Area through Louisville's existing NSR rules.

E. Reasonable Further Progress (RFP)

    CAA section 172(c)(2) requires attainment plan to require RFP, 
which is defined in CAA section 171(1) as ``annual incremental 
reductions in emissions of the relevant air pollutant as are required 
by this part or may reasonably be required by the Administrator for the 
purpose of ensuring attainment of the SO2 NAAQS by the 
statutory attainment date.'' For pollutants like SO2 where a 
limited number of sources affect air quality, the General Preamble and 
the SO2 nonattainment guidance explain that RFP is best 
construed as an ambitious compliance schedule. As discussed above, LG&E 
completed installation of FGD replacement scrubbers for all four coal-
fired boilers at Mill Creek on June 8, 2016 (Unit 4 new FGD went into 
service on December 9, 2014; Units 1 and 2's new FGD went into service 
on May 27, 2015; and Unit 3 \25\ new FGD went into service on June 8, 
2016) to comply with EPA's MATS extended compliance date of April 16, 
2016. However, for purposes of demonstrating attainment of the 2010 
SO2 standard, Kentucky established an independent 
SO2 emission limit of 0.20 lb/MMBtu for Mill Creek (title V 
operating permit 145-97-TV(R3) based on the SO2 emission 
reductions from the FGD replacement. All FGD controls are currently 
installed and operational at Mill Creek and the facility is currently 
complying with the 30-day emission limits as of April 5, 2017 (the date 
the revised title V permit was issued).\26\ EPA has evaluated these 
emissions limits and proposes to determine that these limits provide 
for modeled attainment of the 2010 SO2 NAAQS in the 
Jefferson County nonattainment area.
---------------------------------------------------------------------------

    \25\ Unit 3 ceased operation on April 9, 2016, to comply with 
the extended MATS compliance date and did not return to service 
until all controls and construction necessary to comply with MATS 
were completed.
    \26\ See Mill Creek Generating Station title V operating permit 
No. 145-97-TV(R3) in the Docket (ID: EPA-R04-OAR-2017-0625) for this 
proposal action.
---------------------------------------------------------------------------

    SO2 emissions within the nonattainment area have 
decreased approximately 89 percent since 2014, which correlates to a 
reduction of SO2 concentrations recorded at the Watson Lane 
monitor during this period.\27\ Kentucky finds that this plan requires 
the affected sources implement appropriate control measures as 
expeditiously as practicable to ensure attainment of the standard by 
the applicable attainment date. Mill Creek

[[Page 56014]]

has met the limits in Kentucky's plan by the April 5, 2017 compliance 
date (effective date of the new 30-day SO2 emission limits). 
Therefore, Kentucky concludes that this plan provides for RFP in 
accordance with EPA's April 2014 SO2 nonattainment guidance. 
Currently, the Watson Lane monitor 2015-2017 quality-assured and 
certified SO2 design value is below the 1-hour NAAQS at 31 
ppb, EPA expects the Area to show attainment of the 2010 standard by 
the statutory attainment date. EPA proposes to concur and concludes 
that the plan provides for RFP, as specified in the General Preamble 
and the SO2 nonattainment guidance, and therefore satisfies 
the requirements of CAA section 172(c)(2).
---------------------------------------------------------------------------

    \27\ According to CAMD data, annual SO2 emissions 
have dropped, from 28,149 tons in 2014 to 14,082 tons in 2015. 
Subsequent years have reported further reductions with 4,335 tons in 
2016 and 3,040 tons in 2017. The Watson Lane monitor (AQS ID: 21-
111-0051), located less than 2 km east of the Mill Creek facility, 
recorded decreasing SO2 concentrations from an annual 
99th percentile value of 148.6 ppb in 2014, 54.2 ppb in 2015, 26.1 
ppb in 2016 and 13.7 ppb in 2017.
---------------------------------------------------------------------------

F. Contingency Measures

    As noted above, EPA's SO2 nonattainment guidance 
describes special features of SO2 planning that influence 
the suitability of alternative means of addressing the requirement in 
section 172(c)(9) for contingency measures for SO2, such 
that an appropriate means of satisfying this requirement is for the 
Commonwealth to have a comprehensive enforcement program that 
identifies sources of violations of the SO2 NAAQS and to 
undertake an aggressive follow-up for compliance and enforcement. 
Kentucky's plan provides for satisfying the contingency measure 
requirement in this manner. Jefferson County is authorized by Kentucky 
Revised Statutes Chapter 77 to ensure that control strategies, 
including reasonably achievable control technology and contingency 
measures, necessary to attain the standard by the applicable attainment 
date are implemented in the nonattainment area. Kentucky's proposed SIP 
revision has been developed in accordance with this authority. In 
addition, if a monitored exceedance of the SO2 NAAQS occurs 
in the future and all sources are found to comply with applicable SIP 
and permit emission limits, Jefferson County will perform the necessary 
analysis to determine the cause of the exceedance, and determine what 
additional control measures are necessary to impose on the Area's 
stationary sources to continue to maintain attainment of the 
SO2 NAAQS. Jefferson County will inform any affected 
stationary sources of SO2 of the potential need for 
additional control measures. If there is a violation of the NAAQS for 
SO2 within the nonattainment area, then Jefferson County 
will notify the stationary source that the potential exists for a NAAQS 
violation. Within six months of notification, the source must submit a 
detailed plan of action specifying additional control measures to be 
implemented no later than 18 months after the notification. The 
additional control measures will be submitted to the EPA for approval 
and incorporation into the SIP. EPA preliminarily concurs and proposes 
to approve Kentucky's plan for meeting the contingency measure 
requirement as described above and in the proposed SIP revision.

V. Incorporation by Reference

    In this rule, 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, EPA is proposing to incorporate by 
reference into the Jefferson County portion of the Kentucky SIP, a 
SO2 emission limit and specified compliance conditions 
established in title V permit 145-97-TV(R3) for each coal-fired 
emissions unit at the LG&E Mill Creek Generating station in Jefferson 
County nonattainment area. Specifically, EPA is proposing to 
incorporate into the Jefferson County portion of the Kentucky SIP a 
0.20 lb/MMBtu 30-day SO2 emission limit for each EGU (U1, 
U2, U3 and U4) and operating and compliance conditions (monitoring, 
recordkeeping and reporting) all established at Plant-wide Specific 
condition S1-Standards, S2-Monitoring and Record Keeping and S3-
Reporting in title V permit 145-97-TV(R3) for EGU U1, U2, U3 and U4. 
The SO2 emission standards specified in the permit are the 
basis for the attainment demonstration. EPA has made, and will continue 
to make, these materials generally available through 
www.regulations.gov and at EPA Region 4 office (please contact the 
person identified in the For Further Information Contact section of 
this preamble for more information).

VI. EPA's Proposed Action

    EPA is proposing to approve Kentucky's SO2 nonattainment 
SIP submission, which the Commonwealth submitted to EPA on June 23, 
2017, for attaining the 2010 1-hour SO2 NAAQS for the 
Jefferson County nonattainment area and for meeting other nonattainment 
area planning requirements. EPA has preliminarily determined that the 
nonattainment SIP meets the applicable requirements of sections 110, 
172, 191 and 192 of the CAA and nonattainment regulatory requirements 
at 40 CFR part 51. This SO2 nonattainment plan includes 
Kentucky's attainment demonstration for the Jefferson County 
nonattainment area and other nonattainment requirements for RFP, RACT/
RACM, NNSR, base-year and projection-year emission inventories, 
enforceable emission limits and control measures and compliance 
parameters, and contingency measures. Additionally, EPA is proposing to 
approve into the Jefferson County portion of the Kentucky SIP, Mill 
Creek's enforceable SO2 emission limits and compliance 
parameters (monitoring and reporting) established at Plant-wide 
Specific condition S1-Standards, S2-Monitoring and Record Keeping and 
S3-Reporting established in title V permit 145-97-TV(R3).

VII. Statutory and Executive Orders

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. This action merely 
proposes to approve state law as meeting Federal requirements and does 
not impose additional requirements beyond those imposed by state law. 
For that reason, this 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);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     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 (Public Law 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

[[Page 56015]]

Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) 
because application of those requirements would be inconsistent with 
the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where EPA or an Indian tribe has demonstrated that a 
tribe has jurisdiction. In those areas of Indian country, the rule does 
not have tribal implications as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
Reference, Intergovernmental relations, Reporting and recordkeeping 
requirements, Sulfur oxides.

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

    Dated: November 1, 2018.
Onis ``Trey'' Glenn, III,
Regional Administrator, Region 4.
[FR Doc. 2018-24582 Filed 11-8-18; 8:45 am]
 BILLING CODE 6560-50-P



                                                56002                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                generating capacity. At the time that a                 Subpart D—Arizona                                     County nonattainment area by the
                                                plan is transmitted to the Administrator,                                                                     applicable attainment date and that the
                                                the owner or operator shall notify the                  § 52.145    [Amended]                                 nonattainment plan meets the other
                                                Administrator in writing if less than the               ■ 4. Section 52.145 amended by                        applicable requirements under CAA.
                                                full scheduled unit-weeks of                            removing and reserving paragraph (d).                 DATES: Comments must be received on
                                                maintenance were conducted for the                      [FR Doc. 2018–24482 Filed 11–8–18; 8:45 am]           or before December 10, 2018.
                                                period covered by the previous plan and                 BILLING CODE 6560–50–P                                ADDRESSES: Submit your comments,
                                                shall furnish a written report stating                                                                        identified by Docket ID No. EPA–R04–
                                                how that year qualified for one of the                                                                        OAR–2017–0625 at http://
                                                exceptions identified in paragraph                      ENVIRONMENTAL PROTECTION                              www.regulations.gov. Follow the online
                                                (k)(13) of this section.                                AGENCY                                                instructions for submitting comments.
                                                  (13) Exceptions for maintenance                                                                             Once submitted, comments cannot be
                                                                                                        40 CFR Part 52
                                                scheduling. The owner or operator shall                                                                       edited or removed from Regulations.gov.
                                                conduct a full 6 unit-weeks of                          [EPA–R04–OAR–2017–0625; FRL–9986–36–                  EPA may publish any comment received
                                                maintenance in accordance with the                      Region 4]                                             to its public docket. Do not submit
                                                plan required in paragraph (k)(12) of                                                                         electronically any information you
                                                                                                        Air Plan Approval; Kentucky;                          consider to be Confidential Business
                                                this section unless the owner or                        Attainment Plan for Jefferson County
                                                operator can demonstrate to the                                                                               Information (CBI) or other information
                                                                                                        SO2 Nonattainment Area                                whose disclosure is restricted by statute.
                                                satisfaction of the Administrator that a
                                                full 6 unit-weeks of maintenance during                 AGENCY:  Environmental Protection                     Multimedia submissions (audio, video,
                                                the November 1 to March 15 period                       Agency (EPA).                                         etc.) must be accompanied by a written
                                                should not be required because one of                   ACTION: Proposed rule.                                comment. The written comment is
                                                the conditions in paragraph (k)(13)(i)                                                                        considered the official comment and
                                                through (iv) of this section are met. If                SUMMARY:   The Environmental Protection               should include discussion of all points
                                                the Administrator determines that a full                Agency (EPA) is proposing to approve                  you wish to make. EPA will generally
                                                6 unit-weeks of maintenance during the                  the State Implementation Plan (SIP)                   not consider comments or comment
                                                November 1 to March 15 period should                    revision, submitted under a cover letter              contents located outside of the primary
                                                not be required, the owner or operator                  dated June 23, 2017, by the                           submission (i.e. on the web, cloud, or
                                                shall nevertheless conduct that amount                  Commonwealth of Kentucky, through                     other file sharing system). For
                                                of scheduled maintenance that is not                    the Kentucky Division for Air Quality                 additional submission methods, the full
                                                precluded by the Administrator.                         (KDAQ) on behalf of the Louisville                    EPA public comment policy,
                                                Generally, the owner or operator shall                  Metro Air Pollution Control District                  information about CBI or multimedia
                                                make best efforts to conduct as much                    (District or Jefferson County) to EPA, for            submissions, and general guidance on
                                                scheduled maintenance as practicable                    attaining the 1-hour sulfur dioxide (SO2)             making effective comments, please visit
                                                during the November 1 to March 15                       primary national ambient air quality                  http://www2.epa.gov/dockets/
                                                                                                        standard (NAAQS) for the Jefferson                    commenting-epa-dockets.
                                                period.
                                                                                                        County SO2 nonattainment area                         FOR FURTHER INFORMATION CONTACT:
                                                  (i) There is no need for 6 unit-weeks                 (hereafter referred to as the ‘‘Jefferson             Richard Wong, Air Regulatory
                                                of scheduled periodic maintenance in                    County nonattainment area,’’                          Management Section, Air Planning and
                                                the year covered by the plan;                           ‘‘nonattainment Area’’ or ‘‘Area’’). The              Implementation Branch, Air, Pesticides
                                                  (ii) The reserve margin on any                        Jefferson County nonattainment area is                and Toxics Management Division, U.S.
                                                electrical system served by the Navajo                  comprised of a portion of Jefferson                   Environmental Protection Agency,
                                                Generating Station would fall to an                     County in Kentucky surrounding the                    Region 4, 61 Forsyth Street SW, Atlanta,
                                                inadequate level, as defined by the                     Louisville Gas and Electric Mill Creek                Georgia 30303–8960. Mr. Wong can be
                                                criteria referred to in paragraph (k)(12)               Electric Generating Station (hereafter                reached via telephone at (404) 562–8726
                                                of this section;                                        referred to as ‘‘Mill Creek’’ or ‘‘LG&E’’).           or via electronic mail at wong.richard@
                                                                                                        This plan (hereafter called a                         epa.gov.
                                                  (iii) The cost of compliance with this
                                                                                                        ‘‘nonattainment plan’’ or ‘‘SIP’’ or                  SUPPLEMENTARY INFORMATION:
                                                requirement would be excessive. The
                                                                                                        ‘‘attainment SIP’’) includes Kentucky’s
                                                cost of compliance would be excessive                                                                         Table of Contents
                                                                                                        attainment demonstration and other
                                                when the economic savings to the
                                                                                                        elements required under the Clean Air                 I. Requirement for Kentucky to Submit an
                                                owner or operator of moving
                                                                                                        Act (CAA or Act). In addition to an                         SO2 Attainment Plan for the Jefferson
                                                maintenance out of the November 1 to                                                                                County Area
                                                                                                        attainment demonstration, the plan
                                                March 15 period exceeds $50,000 per                                                                           II. Requirements for SO2 Attainment Plans
                                                                                                        addresses the requirement for meeting
                                                unit-day of maintenance moved; and                                                                            III. Attainment Demonstration and Longer
                                                                                                        reasonable further progress (RFP)
                                                  (iv) A major forced outage at a unit                                                                              Term Averaging
                                                                                                        toward attainment of the NAAQS,                       IV. Review of Attainment Plan Requirements
                                                occurs outside of the November 1 to                     reasonably available control measures                    A. Emission Inventory
                                                March 15 period, and necessary                          and reasonably available control                         B. Attainment Modeling Demonstration
                                                periodic maintenance occurs during the                  technology (RACM/RACT), base-year                        1. Model Selection
                                                period of forced outage.                                and projection-year emissions                            2. Meteorological Data
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                                                                                                        inventories, enforceable emission limits,                3. Emissions Data
                                                PART 52—APPROVAL AND                                    nonattainment new source review                          4. Emission Limits
                                                PROMULGATION OF                                         (NNSR) and contingency measures. EPA                     i. Enforceability
                                                IMPLEMENTATION PLANS                                                                                             ii. Longer Term Average Limits
                                                                                                        proposes to conclude that Kentucky has                   5. Background Concentration
                                                                                                        appropriately demonstrated that the                      6. Summary of Modeling Results
                                                ■ 3. The authority citation for part 52                 nonattainment plan provisions provide                    C. RACM/RACT
                                                continues to read as follows:                           for attainment of the 2010 1-hour                        D. New Source Review (NSR)
                                                    Authority: 42 U.S.C. 7401, et seq.                  primary SO2 NAAQS in the Jefferson                       E. Reasonable Further Progress (RFP)



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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                         56003

                                                  F. Contingency Measures                               plan (FIP) within two years of the                    requirement, and no requirement in
                                                V. Incorporation by Reference                           finding unless, by that time (a) the state            effect (or required to be adopted by an
                                                VI. EPA’s Proposed Action                               has made the necessary complete                       order, settlement, agreement, or plan in
                                                VII. Statutory and Executive Orders                     submittal and (b) EPA has approved the                effect before November 15, 1990) in any
                                                I. Requirements for Kentucky to Submit                  submittal as meeting applicable                       area which is a nonattainment area for
                                                an SO2 Plan for the Jefferson County                    requirements. EPA’s FIP duty will be                  any air pollutant, may be modified in
                                                Area.                                                   terminated if EPA issues a final                      any manner unless it insures equivalent
                                                                                                        approval of Kentucky’s SIP revision.                  or greater emission reductions of such
                                                   On June 22, 2010 (75 FR 35520), EPA                                                                        air pollutant. EPA is proposing to
                                                promulgated a new 1-hour primary SO2                    II. Requirements for SO2
                                                                                                                                                              approve Kentucky’s June 23, 2017, SO2
                                                NAAQS of 75 parts per billion (ppb),                    Nonattainment Area Plans
                                                                                                                                                              attainment SIP for the Jefferson County
                                                which is met at an ambient air quality                     Nonattainment areas must provide                   nonattainment area because EPA has
                                                monitoring site when the 3-year average                 SIPs meeting the applicable                           preliminarily determined that the plan
                                                of the annual 99th percentile of daily                  requirements of the CAA, and                          satisfies the aforementioned CAA and
                                                maximum 1-hour average                                  specifically CAA sections 110(a), 172,                regulatory requirements for
                                                concentrations does not exceed 75 ppb,                  191 and 192 for the SO2 NAAQS. EPA’s                  nonattainment areas. Furthermore, EPA
                                                as determined in accordance with                        regulations governing nonattainment                   notes that current 2015–2017 quality-
                                                Appendix T of 40 CFR part 50. See 40                    SIPs are set forth at 40 CFR part 51, with            assured and certified data for the
                                                CFR 50.17(a)–(b). On August 5, 2013 (78                 specific procedural requirements and                  Watson Lane monitor (AQS ID: AQS ID:
                                                FR 47191), EPA designated a first set of                control strategy requirements residing at             21–11–0051) in the nonattainment area
                                                29 areas of the country as nonattainment                subparts F and G, respectively. Soon                  indicates a design value below the 1-
                                                for the 2010 SO2 NAAQS. See 40 CFR                      after Congress enacted the 1990                       hour SO2 standard.
                                                part 81, subpart C. These designations                  Amendments to the CAA, EPA issued
                                                included the Jefferson County                           general guidance on SIPs, in a document               III. Attainment Demonstration and
                                                nonattainment area, which encompasses                   entitled the ‘‘General Preamble for the               Longer Term Averaging
                                                the primary SO2 emitting source Mill                    Implementation of Title I of the Clean                   CAA sections 172(c)(1) and (6) direct
                                                Creek and the nearby Watson Lane SO2                    Air Act Amendments of 1990,’’                         states with areas designated as
                                                monitor (Air Quality Site (AQS) ID: 21–                 published at 57 FR 13498 (April 16,                   nonattainment to demonstrate that the
                                                11–0051). These area designations were                  1992) (General Preamble). Among other                 submitted plan provides for attainment
                                                effective October 4, 2013. Section 191 of               things, the General Preamble addressed                of the NAAQS. 40 CFR part 51, subpart
                                                the CAA directs states to submit SIPs for               SO2 SIPs and fundamental principles for               G further delineates the control strategy
                                                areas designated as nonattainment for                   SIP control strategies. Id., at 13545–49,             requirements that SIPs must meet, and
                                                the SO2 NAAQS to EPA within 18                          13567–68. On April 23, 2014, EPA                      EPA has long required that all SIPs and
                                                months of the effective date of the                     issued guidance for meeting the                       control strategies reflect four
                                                designation, i.e., by no later than April               statutory requirements in SO2 SIPs                    fundamental principles of
                                                4, 2015, in this case. Under CAA section                under the 2010 primary NAAQS, in a                    quantification, enforceability,
                                                192(a), these SIPs are required to                      document entitled, ‘‘Guidance for 1-                  replicability, and accountability.
                                                demonstrate that their respective areas                 Hour SO2 Nonattainment Area SIP                       General Preamble, at 13567–68. SO2
                                                will attain the NAAQS as expeditiously                  Submissions,’’ available at https://                  attainment plans must consist of two
                                                as practicable, but no later than 5 years               www.epa.gov/sites/production/files/                   components: (1) Emission limits and
                                                from the effective date of designation,                 2016-06/documents/20140423guidance_                   other control measures that assure
                                                which is October 4, 2018.                               nonattainment_sip.pdf (hereafter                      implementation of permanent,
                                                   For the Jefferson County                             referred to as SO2 nonattainment                      enforceable and necessary emission
                                                nonattainment area (and many other                      guidance). In this guidance, EPA                      controls, and (2) a modeling analysis
                                                areas), EPA published a notice on March                 described the statutory requirements for              which meets the requirements of 40 CFR
                                                18, 2016 (81 FR 14736), that Kentucky                   SO2 SIPs for nonattainment areas, which               part 51, Appendix W which
                                                (and other pertinent states) had failed to              include: An accurate emissions                        demonstrates that these emission limits
                                                submit the required SO2 nonattainment                   inventory of current emissions for all                and control measures provide for timely
                                                plan by the submittal deadline. This                    sources of SO2 within the                             attainment of the primary SO2 NAAQS
                                                finding initiated a deadline under CAA                  nonattainment area; an attainment                     as expeditiously as practicable, but by
                                                section 179(a) for the potential                        demonstration; demonstration of RFP;                  no later than the CAA maximum
                                                imposition of NSR offset and highway                    implementation of RACM (including                     attainment date for the affected area. In
                                                funding sanctions. However, pursuant                    RACT); NNSR; enforceable emissions                    all cases, the emission limits and
                                                to Kentucky’s submittal of June 23,                     limitations and control measures; and                 control measures must be accompanied
                                                2017,1 and EPA’s subsequent letter                      adequate contingency measures for the                 by appropriate methods and conditions
                                                dated October 10, 2017, to Kentucky                     affected area.                                        to determine compliance with the
                                                finding the submittal to be complete and                   For EPA to fully approve a SIP as                  respective emission limits and control
                                                noting the termination of these                         meeting the requirements of CAA                       measures and must be quantifiable (i.e.,
                                                sanctions deadlines, these sanctions                    sections 110, 172 and 191–192, and                    a specific amount of emission reduction
                                                under section 179(a) were not and will                  EPA’s regulations at 40 CFR part 51, the              can be ascribed to the measures), fully-
                                                not be imposed as a result of Kentucky                  SIP for the affected area needs to                    enforceable (specifying clear,
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                                                having missed the April 4, 2015,                        demonstrate to EPA’s satisfaction that                unambiguous and measurable
                                                submittal deadline. Under CAA section                   each of the aforementioned                            requirements for which compliance can
                                                110(c), EPA’s March 18, 2016, finding                   requirements have been met. Under                     be practicably determined), replicable
                                                also triggered a requirement that EPA                   CAA sections 110(l) and 193, EPA may                  (the procedures for determining
                                                promulgate a federal implementation                     not approve a SIP that would interfere                compliance are sufficiently specific and
                                                                                                        with any applicable requirement                       non-subjective so that two independent
                                                  1 EPA received Kentucky’s submittal on July 6,        concerning NAAQS attainment and                       entities applying the procedures would
                                                2017.                                                   RFP, or any other applicable                          obtain the same result), and accountable


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                                                56004                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                (source specific limits must be                         reasonable confidence that a properly                   subject to an analogous 1-hour average
                                                permanent and must reflect the                          set longer term average limit will                      limit. EPA expects this similarity
                                                assumptions used in the SIP                             provide that the 3-year average of the                  because it has recommended that the
                                                demonstrations).                                        annual fourth highest daily maximum 1-                  longer term average limit be set at a
                                                   EPA’s April 2014 SO2 nonattainment                   hour value will be at or below 75 ppb.                  level that is comparably stringent to the
                                                guidance recommends that the emission                   A synopsis of how EPA judges whether                    otherwise applicable 1-hour limit
                                                limits be expressed as short-term                       such plans ‘‘provide for attainment,’’                  (reflecting a downward adjustment from
                                                average limits (e.g., addressing                        based on modeling of projected                          the critical emissions value) and that
                                                emissions averaged over one or three                    allowable emissions and in light of the                 takes the source’s emissions profile into
                                                hours), but also describes the option to                SO2 NAAQS form for determining                          account. As a result, EPA expects either
                                                establish emission limits with longer                   attainment at monitoring sites, follows.                form of emission limit to yield
                                                averaging times of up to 30 days so long                   For SO2 plans that are based on 1-                   comparable air quality.
                                                as the limits meet certain recommended                  hour emission limits, the standard                         Second, from a more theoretical
                                                criteria. See SO2 nonattainment                         approach is to conduct modeling using                   perspective, EPA has compared the
                                                guidance, pp. 22 to 39. The guidance                    fixed emission rates. The maximum                       likely air quality with a source having
                                                recommends that—should states and                       emission rate that would be modeled to                  maximum allowable emissions under an
                                                sources utilize longer averaging times—                 result in attainment (i.e., in an ‘‘average             appropriately set longer term limit, to
                                                the longer term average limit should be                 year’’ 2 shows three, not four days with                the likely air quality with the source
                                                a lower-adjusted level that reflects a                  maximum hourly levels exceeding 75                      having maximum allowable emissions
                                                stringency comparable to the 1-hour                     ppb) is labeled the ‘‘critical emission                 under the comparable 1-hour limit. In
                                                average limit at the critical emission                  value.’’ The modeling process for                       this comparison, in the 1-hour average
                                                value (CEV) shown by modeling to                        identifying this critical emissions value               limit scenario, the source is presumed at
                                                provide for attainment that the plan                    inherently considers the numerous                       all times to emit at the critical emission
                                                otherwise would have set.                               variables that affect ambient                           level, and in the longer term average
                                                   EPA’s SO2 nonattainment guidance                     concentrations of SO2, such as                          limit scenario the source is presumed to
                                                provides an extensive discussion of                     meteorological data, background                         occasionally emit more than the critical
                                                EPA’s rationale for concluding that                     concentrations, and topography. In the                  emission value but on average, and
                                                appropriately set comparably stringent                  standard approach, the state would then                 presumably at most times, to emit well
                                                limitations based on averaging times as                 provide for attainment by setting a                     below the critical emission value. In an
                                                long as 30 days can be found to provide                 continuously applicable 1-hour                          ‘‘average year,’’ compliance with the 1-
                                                for attainment of the 2010 SO2 NAAQS.                   emission limit at this critical emission                hour limit is expected to result in three
                                                In evaluating this option, EPA                          value.                                                  exceedance days (i.e., three days with
                                                considered the nature of the standard,                     EPA recognizes that some sources                     hourly values above 75 ppb) and a
                                                conducted detailed analyses of the                      have highly variable emissions, for                     fourth day with a maximum hourly
                                                impact concerning the use of 30-day                     example due to variations in fuel sulfur                value at 75 ppb. By comparison, with
                                                average limits on the prospects for                     content and operating rate, that can                    the source complying with a longer term
                                                attaining the standard, and carefully                   make it extremely difficult, even with a                limit, it is possible that additional
                                                reviewed how best to achieve an                         well-designed control strategy, to ensure               exceedances would occur that would
                                                appropriate balance among the various                   in practice that emissions for any given                not occur in the 1-hour limit scenario (if
                                                factors that warrant consideration in                   hour do not exceed the critical emission                emissions exceed the critical emission
                                                judging whether a state’s plan provides                 value. EPA also acknowledges the                        value at times when meteorology is
                                                for attainment. Id. at pp. 22 to 39. See                concern that longer term emission limits                conducive to poor air quality). However,
                                                also id. at Appendices B, C, and D.                     can allow short periods with emissions                  this comparison must also factor in the
                                                   As specified in 40 CFR 50.17(b), the                 above the ‘‘critical emission value,’’                  likelihood that exceedances that would
                                                1-hour primary SO2 NAAQS is met at an                   which, if coincident with                               be expected in the 1-hour limit scenario
                                                ambient air quality monitoring site                     meteorological conditions conducive to                  would not occur in the longer term limit
                                                when the 3-year average of the annual                   high SO2 concentrations, could in turn                  scenario. This result arises because the
                                                99th percentile of daily maximum 1-                     create the possibility of a NAAQS                       longer term limit requires lower
                                                hour average concentrations is less than                exceedance occurring on a day when an                   emissions most of the time (because the
                                                or equal to 75 ppb. In a year with 365                  exceedance would not have occurred if                   limit is set well below the critical
                                                days of valid monitoring data, the 99th                 emissions were continuously controlled                  emission value), so a source complying
                                                percentile would be the fourth highest                  at the level corresponding to the critical              with an appropriately set longer term
                                                daily maximum 1-hour value. The 2010                    emission value. However, for several                    limit is likely to have lower emissions
                                                SO2 NAAQS, including this form of                       reasons, EPA believes that the approach                 at critical times than would be the case
                                                determining compliance with the                         recommended in its guidance document                    if the source were emitting as allowed
                                                standard, was upheld by the U.S. Court                  suitably addresses this concern. First,                 with a 1-hour limit.
                                                of Appeals for the District of Columbia                 from a practical perspective, EPA                          As a hypothetical example to
                                                Circuit in Nat’l Envt’l Dev. Ass’n’s Clean              expects the actual emission profile of a                illustrate these points, suppose a source
                                                Air Project v. EPA, 686 F.3d 803 (D.C.                  source subject to an appropriately set                  that always emits 1000 pounds of SO2
                                                Cir. 2012). Because the standard has this               longer term average limit to be similar                 per hour, which results in air quality at
                                                form, a single hourly exceedance of the                 to the emission profile of a source                     the level of the NAAQS (i.e., results in
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                                                75-ppb level does not create a violation                                                                        a design value of 75 ppb). Suppose
                                                of the standard. Instead, at issue is                     2 An ‘‘average year’’ is used to mean a year with     further that in an ‘‘average year,’’ these
                                                whether a source operating in                           average air quality. While 40 CFR 50 Appendix T         emissions cause the 5-highest maximum
                                                compliance with a properly set longer                   provides for averaging three years of 99th percentile   daily average 1-hour concentrations to
                                                term average could cause exceedances,                   daily maximum hourly values (e.g., the fourth           be 100 ppb, 90 ppb, 80 ppb, 75 ppb, and
                                                                                                        highest maximum daily hourly concentration in a
                                                and if so the resulting frequency and                   year with 365 days with valid data), this discussion
                                                                                                                                                                70 ppb. Then suppose that the source
                                                magnitude of such exceedances, and in                   and an example below uses a single ‘‘average year’’     becomes subject to a 30-day average
                                                particular, whether EPA can have                        to simplify the illustration of relevant principles.    emission limit of 700 pounds per hour


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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                                  56005

                                                (lb/hr). It is theoretically possible for a             meets the requirements in sections                    to have a degree of stringency
                                                source meeting this limit to have                       110(a)(1) and 172(c)(1) and (6) for SIPs              comparable to the otherwise necessary
                                                emissions that occasionally exceed 1000                 to contain enforceable emissions                      1-hour emission limit. This method uses
                                                lb/hr, but with a typical emissions                     limitations and other control measures                a database of continuous emission data
                                                profile, emissions would much more                      to ‘‘provide for attainment’’ of the                  reflecting the type of control that the
                                                commonly be between 600 and 800 lb/                     NAAQS. For SO2, as for other                          source will be using to comply with the
                                                hr. In this simplified example, assume                  pollutants, it is generally impossible to             SIP emission limits, which (if
                                                a zero-background concentration, which                  design a nonattainment plan in the                    compliance requires new controls) may
                                                allows one to assume a linear                           present that will guarantee that                      require use of an emission database
                                                relationship between emissions and air                  attainment will occur in the future. A                from another source. The recommended
                                                quality. (A nonzero background                          variety of factors can cause a well-                  method involves using these data to
                                                concentration would make the                            designed attainment plan to fail and                  compute a complete set of emission
                                                mathematics more difficult but would                    unexpectedly not result in attainment,                averages, computed according to the
                                                give similar results.) Air quality will                 for example if meteorology occurs that                averaging time and averaging
                                                depend on what emissions happen on                      is more conducive to poor air quality                 procedures of the prospective emission
                                                what critical hours, but suppose that                   than was anticipated in the plan.                     limitation. In this recommended
                                                emissions at the relevant times on these                Therefore, in determining whether a                   method, the ratio of the 99th percentile
                                                5 days are 800 lb/hr, 1100 lb/hr, 500 lb/               plan meets the requirement to provide                 among these long-term averages to the
                                                hr, 900 lb/hr, and 1200 lb/hr,                          for attainment, EPA’s task is commonly                99th percentile of the 1-hour values
                                                respectively. (This is a conservative                   to judge not whether the plan provides                represents an adjustment factor that may
                                                example because the average of these                    absolute certainty that attainment will               be multiplied by the candidate 1-hour
                                                emissions, 900 lb/hr, is well over the 30-              in fact occur, but rather whether the                 emission limit to determine a longer
                                                day average emission limit.) These                      plan provides an adequate level of                    term average emission limit that may be
                                                emissions would result in daily                         confidence of prospective NAAQS                       considered comparably stringent.3 The
                                                maximum 1-hour concentrations of 80                     attainment. From this perspective, in                 guidance also addresses a variety of
                                                ppb, 99 ppb, 40 ppb, 67.5 ppb, and 84                   evaluating use of a 30-day average limit,             related topics, such as the potential
                                                ppb. In this example, the fifth day                     EPA must weigh the likely net effect on               utility of setting supplemental emission
                                                would have an exceedance that would                     air quality. Such an evaluation must                  limits, such as mass-based limits, to
                                                not otherwise have occurred, but the                    consider the risk that occasions with                 reduce the likelihood and/or magnitude
                                                third day would not have an exceedance                  meteorology conducive to high                         of elevated emission levels that might
                                                that otherwise would have occurred,                     concentrations will have elevated                     occur under the longer term emission
                                                and the fourth day would have a                         emissions leading to exceedances that                 rate limit.
                                                concentration below, rather than at, 75                 would not otherwise have occurred, and                  Preferred air quality models for use in
                                                ppb. In this example, the fourth highest                must also weigh the likelihood that the               regulatory applications are described in
                                                maximum daily concentration under the                   requirement for lower emissions on                    Appendix A of EPA’s Guideline on Air
                                                30-day average would be 67.5 ppb.                       average will result in days not having                Quality Models (40 CFR part 51,
                                                   This simplified example illustrates                  exceedances that would have been                      Appendix W), also referred to as
                                                the findings of a more complicated                      expected with emissions at the critical               Guideline. In 2005, EPA promulgated
                                                statistical analysis that EPA conducted                 emissions value. Additional policy                    AERMOD as the Agency’s preferred
                                                using a range of scenarios using actual                                                                       near-field dispersion modeling for a
                                                                                                        considerations, such as in this case the
                                                plant data. As described in Appendix B                                                                        wide range of regulatory applications
                                                                                                        desirability of accommodating real
                                                of EPA’s SO2 nonattainment guidance,                                                                          addressing stationary sources (for
                                                                                                        world emissions variability without
                                                EPA found that the requirement for                                                                            example in estimating SO2
                                                                                                        significant risk of violations, are also
                                                lower average emissions is highly likely                                                                      concentrations) in all types of terrain
                                                                                                        appropriate factors for EPA to weigh in
                                                to yield better air quality than is                                                                           based on extensive developmental and
                                                                                                        judging whether a plan provides a
                                                required with a comparably stringent 1-                                                                       performance evaluation. Supplemental
                                                                                                        reasonable degree of confidence that the
                                                hour limit. Based on analyses described                                                                       guidance on modeling for purposes of
                                                                                                        plan will lead to attainment. Based on
                                                in Appendix B of its nonattainment                                                                            demonstrating attainment of the SO2
                                                                                                        these considerations, especially given
                                                guidance, EPA expects that an emission                                                                        NAAQS is provided in Appendix A to
                                                profile with maximum allowable                          the high likelihood that a continuously               the SO2 nonattainment guidance
                                                emissions under an appropriately set                    enforceable limit averaged over as long               document referenced above. Appendix
                                                comparably stringent 30-day average                     as 30 days, determined in accordance                  A provides extensive guidance on the
                                                limit is likely to have the net effect of               with EPA’s nonattainment guidance,                    modeling domain, the source inputs,
                                                having a lower number of exceedances                    will result in attainment, EPA believes               assorted types of meteorological data,
                                                and better air quality than an emission                 as a general matter that such limits, if              and background concentrations.
                                                profile with maximum allowable                          appropriately determined, can                         Consistency with the recommendations
                                                emissions under a 1-hour emission limit                 reasonably be considered to provide for               in this guidance is generally necessary
                                                at the critical emission value. This                    attainment of the 2010 SO2 NAAQS.                     for the attainment demonstration to
                                                result provides a compelling policy                        The SO2 nonattainment guidance                     offer adequately reliable assurance that
                                                rationale for allowing the use of a longer              offers specific recommendations for                   the plan provides for attainment.
                                                averaging period, in appropriate                        determining an appropriate longer term                  As stated previously, attainment
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                                                circumstances where the facts indicate                  average limit. The recommended                        demonstrations for the 2010 1-hour
                                                this result can be expected to occur.                   method starts with determination of the               primary SO2 NAAQS must demonstrate
                                                   The question then becomes whether                    1-hour emission limit that would                      future attainment and maintenance of
                                                this approach—which is likely to                        provide for attainment (i.e., the critical
                                                produce a lower number of overall                       emission value), and applies an                         3 For example, if the critical emission value is

                                                                                                                                                              1000 pounds of SO2 per hour, and a suitable
                                                exceedances even though it may                          adjustment factor to determine the                    adjustment factor is determined to be 70 percent,
                                                produce some unexpected exceedances                     (lower) level of the longer term average              the recommended longer term average limit would
                                                above the critical emission value—                      emission limit that would be estimated                be 700 lb/hr.



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                                                56006                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                the NAAQS in the entire area                            National Emission Inventory (NEI v2),4                           TABLE 1—JEFFERSON COUNTY 2011
                                                designated as nonattainment (i.e., not                  Version 2 supported the requirement for                           BASE YEAR POINT SOURCE SO2
                                                just at the violating monitor) by using                 timeliness of data, and was also                                  EMISSION INVENTORY—Continued
                                                air quality dispersion modeling (see                    representative of a year with violations
                                                                                                                                                                                                  (tpy)
                                                Appendix W to 40 CFR part 51) to show                   of the primary SO2 NAAQS (i.e., one of
                                                that the mix of sources and enforceable                 the 3-years for which EPA designated                                                                       SO2
                                                control measures and emission rates in                  the area nonattainment).                                           Plant/facility site name              Emissions
                                                an identified area will not lead to a                     For the base-year inventory, Kentucky                                                                    (tpy)
                                                violation of the SO2 NAAQS. For a                       reviewed and compiled county-level
                                                                                                        actual SO2 emissions for all source                                      Total .......................     39,010.37
                                                short-term (i.e., 1-hour) standard, EPA
                                                believes that dispersion modeling of                    categories (i.e., point, mobile (on-road
                                                stationary sources as applied consistent                and non-road), area (non-point) and                               The primary SO2-emitting point
                                                with EPA’s Guideline is technically                     event (wildfires and prescribed burns))                        source located within the partial county
                                                appropriate, efficient and effective in                 in Jefferson County and then utilized                          nonattainment area is LG&E’s Mill Creek
                                                demonstrating attainment in                             county and partial county (the portion                         Generating Station (Mill Creek). Mill
                                                nonattainment areas because it                          in the nonattainment area) population                          Creek consists of four coal-fired boilers
                                                appropriately takes into consideration                  and land use data to determine                                 (U1–U4). A breakdown of the actual
                                                                                                        estimated SO2 emission inventories for                         2011 emissions by unit in tpy are as
                                                combinations of meteorological and
                                                                                                        sources of SO2 in the partial county                           follows: Unit 1—5,211 tpy; Unit 2—
                                                emission source operating conditions
                                                                                                        nonattainment area. The emissions                              6,802 tpy; Unit 3—7,175 tpy and Unit
                                                that may contribute to peak ground-
                                                                                                        inventory provided in the June 23, 2017,                       4—10,756 tpy. LG&E replaced the
                                                level concentrations of SO2. The SIP
                                                                                                        submission reflects the most current                           existing wet Flue Gas Desulfurization
                                                modeling should follow requirements in
                                                                                                        emissions profile for all source                               (FGD) control equipment with more
                                                the Guideline for conducting a                                                                                         efficient FGD controls, to comply with
                                                cumulative impact assessment and,                       categories. Additionally, EPA has
                                                                                                        provided supplemental emissions                                the mercury air toxics standard (MATS).
                                                thus, should use EPA’s preferred                                                                                       These replacements have been
                                                dispersion model, the AERMOD                            information to accurately account for
                                                                                                        point source emissions for the County.                         operational for all four units as of June
                                                modeling system (or approved                                                                                           8, 2016. Mill Creek is the only SO2 point
                                                                                                        In Jefferson County, point sources
                                                alternative model) and follow Section 8                                                                                source located in the partial
                                                                                                        account for approximately 99 percent of
                                                of the Guideline in terms of                                                                                           nonattainment area that is listed in
                                                                                                        the total county-level SO2 emissions.
                                                characterizing contributions to total                                                                                  Table 1. Refer to sections IV.B.4 and
                                                                                                        Kentucky provided an SO2 emission
                                                concentrations.                                                                                                        IV.C for more information on Mill Creek
                                                                                                        inventory for those point sources in the
                                                IV. Review of Attainment Plan                           County that emitted over 10 tons per                           and the 1-hour SO2 control strategy.
                                                Requirements                                            year (tpy) based on the 2011 NEI. Table                           Prior to 2016, LG&E Cane Run
                                                                                                        1 below shows county-level SO2                                 Generating Station (Cane Run) was the
                                                A. Emissions Inventory                                  emissions that emitted greater than 10                         next largest SO2 source located in the
                                                   The emissions inventory and source                   tpy in 2011.                                                   northern portion of the County and
                                                emission rate data for an area serve as                                                                                outside the nonattainment area. The
                                                the foundation for air quality modeling                   TABLE 1—JEFFERSON COUNTY 2011                                facility had three boilers and reported
                                                and other analyses that enable states to:                  BASE YEAR POINT SOURCE SO2                                  SO2 emissions of 7,823 tons in 2011. In
                                                (1) Estimate the degree to which                           EMISSION INVENTORY                                          2015, LG&E constructed a new natural
                                                different sources within a                                                            (tpy)                            gas combined cycle turbine (U15) at the
                                                nonattainment area contribute to
                                                                                                                                                                          5 The 39,010.37 total SO point source emissions
                                                violations within the affected area; and                                                                  SO2                                     2
                                                                                                              Plant/facility site name                  Emissions      in Table 1 above is the supplemented
                                                (2) Assess the expected improvement in                                                                    (tpy)        comprehensive county-level base year SO2 point
                                                air quality within the nonattainment                                                                                   source emission inventory. EPA notes that the Table
                                                area due to the adoption and                            Louisville Gas & Electric—                                     1 total county-level 2011 SO2 point source
                                                implementation of control measures. As                    Mill Creek ..........................           29,944.72    emissions of 39,010.37 tons differs from the
                                                                                                                                                                       38,854.87 tons sum of point source SO2 emissions
                                                noted above, the state must develop and                 Louisville Gas & Electric—                                     listed in Table 3 of Kentucky’s 2017 attainment SIP.
                                                submit to EPA a comprehensive,                            Cane Run ..........................              7,823.72    Table 1 above accounts for EPA’s review of the 2011
                                                accurate and current inventory of actual                Louisville Medical Center                                      NEI v2 for all SO2 point sources in Jefferson County.
                                                                                                          Steam Plant ......................                 475.90    The Commonwealth’s Table 3 lists all point sources
                                                emissions from all sources of SO2
                                                                                                        Brown-Forman/Early Times ..                          257.81    in the county that emitted over 10 tpy of SO2 which
                                                emissions in each nonattainment area,                   Cemex (Kosmos) Cement                                          the Commonwealth acquired from EPA’s 2011 NEI
                                                as well as any sources located outside                    Company Inc .....................                  187.47    v2 on January 31, 2017. However, the
                                                the nonattainment area which may                        American Synthetic Rubber                                      Commonwealth’s Table 3 inadvertently omits the
                                                                                                                                                                       Louisville International Airport point source listed
                                                affect attainment in the area. See CAA                    Company ...........................                136.87    in Table 1 above. Additionally, EPA notes Table 1
                                                section 172(c)(3) and (4) and EPA’s SO2                 Louisville International Air-                                  above compiles all county-level SO2 emissions from
                                                nonattainment guidance.                                   port ....................................          136.19    point sources according to the 2011 NEI v2
                                                                                                        Rohm and Haas Company ...                             28.44    including those point sources that emitted less than
                                                   The base year inventory establishes a                                                                               10 tpy while Kentucky’s Table 3 accounts for those
khammond on DSK30JT082PROD with PROPOSAL




                                                baseline that is used to evaluate                           Total emissions for                                        point sources that emitted greater than 10 tpy as
                                                emission reductions achieved by the                           sources greater than                                     indicated in the 2011 NEI v2. Lastly, EPA also notes
                                                                                                              10 tpy .........................           5 38,991.12   the point source emissions entry in Kentucky’s
                                                control strategy and to assess reasonable                                                                              attainment SIP Table 2 is different from the sum of
                                                further progress requirements. Kentucky                 Other SO2 sources ...............                     19.24
                                                                                                                                                                       point source emissions in Kentucky’s Table 3 and
                                                used 2011 as the base year for emission                                                                                EPA’s Table 1 total above. Therefore, the 39,010.37
                                                inventory preparation. At the time of                                                                                  tons of SO2 for point sources total in Table 1 above
                                                                                                          4 2011 NEI Data—https://www.epa.gov/air-                     accounts for the comprehensive compilation of
                                                preparation of the attainment SIP, 2011                 emissions-inventories/2011-national-emissions-                 county-level point sources as indicated in the 2011
                                                reflected the most recent triennial                     inventory-nei-data (accessed January 31, 2017).                NEI v2.



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                                                                               Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                                         56007

                                                Cane Run facility and shut-down coal-                                 source of the violation at the Watson                     KDAQ used the 2011 NEIv2 to obtain
                                                fired units U4 thru U8 and U10.6                                      Lane monitor at the time of designations               estimates of the area and nonroad
                                                   The CEMEX Kosmos Louisville                                        for the nonattainment area listed in                   sources. For on-road mobile source
                                                Cement Plant (Kosmos) is outside the                                  Table 1. Therefore, Mill Creek was the                 emissions, KDAQ utilized EPA’s Motor
                                                boundary of, but adjacent to, the                                     only SO2 source the Commonwealth and                   Vehicle Emissions Simulator
                                                Jefferson County nonattainment area.                                  the District considered for further                    (MOVES2014) and NONROAD. A more
                                                The facility produces Portland and                                    evaluation determined to impact the                    detailed discussion of the emissions
                                                masonry cement and has a production                                   nonattainment area. Cane Run, Kosmos                   inventory development for the Jefferson
                                                design capacity of 1.6 million short tons
                                                                                                                      and the remaining county-level point                   County Area can be found in the June
                                                of cement per year. The primary source
                                                                                                                      sources in Table 1 are all located                     23, 2017, submittal. Table 2 below
                                                of the SO2 emissions are from kiln
                                                operations, which emitted 187 tons in                                 outside of the nonattainment area and                  provides Kentucky’s 2011 base year
                                                2011.                                                                 were accounted for in the attainment                   county-level SO2 emission inventory for
                                                   Mill Creek is the only point source in                             modeling through the background                        Jefferson County.
                                                the nonattainment area and the primary                                monitor (see section IV.B.4 below).

                                                                                       TABLE 2—2011 BASE YEAR EMISSIONS INVENTORY FOR JEFFERSON COUNTY
                                                                                                                                              (tpy)

                                                                           Year                                      Point               On-road           Nonroad             Area               Event              Total

                                                2011 .........................................................    7 39,010.37             64.20             158.75             38.28              2.61            39,274.21



                                                  Based on an evaluation of county and                                when applied to the county-level source                shows the level of SO2 emissions,
                                                partial county (nonattainment area)                                   categories in Table 2, excluding the                   expressed in tpy, in the partial Jefferson
                                                census and land use data, Kentucky                                    point source category (see Table 1                     County nonattainment area for the 2011
                                                determined that the nonattainment area                                above). As noted above, Mill Creek is                  base year by emissions source category.
                                                accounted for 0.42 percent of the total                               the only point source in the
                                                county land use 8 or a total of 1.1 tpy                               nonattainment area. Table 3 below

                                                        TABLE 3—2011 BASE YEAR EMISSION INVENTORY FOR THE JEFFERSON COUNTY PARTIAL NONATTAINMENT AREA
                                                                                                                                          EMISSIONS
                                                                                                                                            (tpy) 9

                                                                       Base year                                     Point               On-road           Nonroad             Area               Event              Total

                                                2011 .........................................................    10 29,944.72            0.27                  0.67           0.16               0.01            29,945.83



                                                  The attainment demonstration also                                   unlikely that there will be any                        emissions for all source categories (i.e.,
                                                provides for a projected 2018 attainment                              significant growth in the nonattainment                point, mobile (on-road and non-road),
                                                year inventory that includes estimated                                area. However, the Commonwealth cites                  area (non-point) and event) in Jefferson
                                                emissions for all emission sources of                                 to the District’s Regulation 2.04,                     County and then utilized county and
                                                SO2 which are determined to impact the                                Construction or Modification of Major                  partial county nonattainment area
                                                nonattainment area for the year in                                    Sources in or Impacting Upon Non-                      population and land use data to
                                                which the Area is expected to attain the                              Attainment Areas, which requires                       determine estimated SO2 emission
                                                standard. This inventory should also                                  NNSR, approved into the SIP and last                   inventories for sources of SO2 in the
                                                address any future growth in the Area                                 updated on October 23, 2001 (see 66 FR                 nonattainment area. The
                                                or any potential increases in emissions                               53660). The District’s SIP-approved                    Commonwealth developed a projected
                                                of the pollutant for which the Jefferson                              NNSR program requires lowest                           emissions inventory for county-level
                                                County Area is nonattainment due to                                   achievable emissions rate, offsets, and                SO2 emissions source categories based
                                                the construction and operation of new                                 public participation requirements for                  on the 2011 NEI as well as the 2008 NEI
                                                major sources, major modifications to                                 major stationary sources and major                     inventory to extrapolate emissions to
                                                existing sources, or increased minor                                  modification and therefore, would                      2018. The point source emissions were
                                                source activity. KDAQ stated in its June                              account for potential growth in the                    estimated by taking credit at Mill Creek
                                                23, 2017, submittal that because the                                  nonattainment area. Kentucky reviewed                  for the new wet FGD controls and title
                                                Area is rural and relatively small, it is                             and compiled county-level actual SO2                   V operating permit limits of 0.20 lb/
                                                   6 KDAQ submitted information regarding the                         the 38,966.95 tons sum of point source SO2             nonattainment area occupies only 1.61 square miles
                                                shut-down of the coal-fired units U4 thru U8 and                      emissions listed in Table 2 of Kentucky’s 2017         of the census tracts or approximately 0.42 percent
khammond on DSK30JT082PROD with PROPOSAL




                                                U10 and the new natural gas combined cycle (U15)                      attainment SIP. Table 2 above accounts for EPA’s       of the total land area.
                                                and auxiliary unit (U16) to EPA on June 20, 2016,                     review of the 2011 NEI v2 for all SO2 point sources      9 Table 2 of Kentucky’s 2017 attainment SIP lists
                                                to satisfy part of its obligations under the SO2 Data                 in Jefferson County.
                                                Requirements Rule at 40 CFR 51.1203(b). The Title                        8 Based on the 2010 census data, the population     the county-level emissions. EPA applied the 0.42
                                                V operating permit 175–00–TV(R2) established a                        in Jefferson County was 741,096 in a land area of      percent to the county-level on-road, nonroad and
                                                natural gas fuel restriction for EGUs U15 and U16                     approximately 380.42 square miles. At the census       area source categories in Table 2 to derive the
                                                is included in the docket for this proposal (ID:                      tract level for the county including the               emissions for the nonattainment area.
                                                EPA–R04–OAR–2017–0625).                                               nonattainment area, roughly 8.25 square miles, the       10 Mill Creek.
                                                   7 EPA notes that the total county-level 2011 SO                    population was estimated to 7,170 or approximately
                                                                                                    2
                                                point source emissions of 39,010.37 tons differ from                  1 percent of the total county population. The



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                                                56008                          Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                MMBtu per unit based on a rolling 30-                                 estimated with MOVES2014; nonroad                      consumption and production forecasts.
                                                day average.11 Point sources in the                                   emissions were projected using national                Table 4 below provides Kentucky’s 2018
                                                County are still expected to account for                              growth factors, and area source                        projected county-level SO2 emission
                                                approximately 99 percent of the total                                 emissions were scaled based on                         inventory for Jefferson County.
                                                county-level SO2 emissions.12 Emission                                emission factors developed using the
                                                estimates for on-road sources were re-                                Annual Energy Outlook 2014 for

                                                                 TABLE 4—2018 PROJECTED ATTAINMENT YEAR SO2 EMISSIONS INVENTORY FOR JEFFERSON COUNTY
                                                                           Year                                      Point               On-road           Nonroad             Area               Event               Total

                                                2018 .........................................................     18,391.77              38.04             158.75             55.62               5.99            18,650.17



                                                  Based on county and partial county                                  expressed in tpy, in the Jefferson County              implemented. Therefore, as an annual
                                                nonattainment area census and land use                                nonattainment area for the 2018                        future year inventory, the point source
                                                data, similar to the base-year                                        projected attainment year inventory.                   portion is reasonably estimated beyond
                                                nonattainment area inventory, Kentucky                                   KDAQ provided a future year                         October 4, 2018, and would represent an
                                                applied the 0.42 percent nonattainment                                projected emissions inventory for all                  annual inventory for 2019 or beyond.
                                                area land use ratio to the 2018 county-                               known sources included in the 2011                     The projected emissions in Table 2 are
                                                level projected emissions inventory in                                base year inventory, discussed above.                  estimated actual emissions, representing
                                                Table 4 resulting in total of 1.06 tpy for                            The projected emissions are consistent                 a 55 percent reduction from the base
                                                on-road, non-road and area sources,                                   with expected levels beyond October 4,                 year SO2 emissions.
                                                excluding point source category.13 Table                              2018, when the control strategy for the
                                                5 below shows the level of emissions,                                 attainment demonstration will be fully

                                                              TABLE 5—2018 PROJECTED ATTAINMENT YEAR EMISSIONS INVENTORY FOR JEFFERSON COUNTY PARTIAL
                                                                                               NONATTAINMENT AREA
                                                                                                                                             (tpy) 14

                                                                           Year                                      Point               On-road           Nonroad             Area               Event               Total

                                                2018 .........................................................      13,490                0.16                  0.67           0.23                0.03            13,491.09



                                                  EPA has evaluated Kentucky’s 2011                                   modeling that Kentucky used in its                     Receptor elevations and hill heights
                                                base year and projected emissions                                     attainment demonstration.                              required by AERMOD were determined
                                                inventory for the Jefferson County                                                                                           using the AERMAP terrain preprocessor
                                                nonattainment area and has made the                                   1. Model Selection                                     version 11103. The meteorological data
                                                preliminary determination that these                                    Kentucky’s attainment demonstration                  was processed using AERMET version
                                                inventories were developed consistent                                 used AERMOD, the EPA’s preferred                       15181 and AERMINUTE version 15272.
                                                with EPA’s April 2014 SO2                                             model for this application. The                        The surface characteristics around the
                                                nonattainment guidance. Although EPA                                  Commonwealth used AERMOD version                       meteorological surface station were
                                                has noted minor discrepancies between                                 15181 with regulatory default options                  determined using AERSURFACE
                                                Kentucky’s inventory provided in the                                  and a rural land use designation.                      version 13016. An analysis of Good
                                                nonattainment SIP and the 2011 NEI,                                   Version 15181 of the AERMOD                            Engineering Practice (GEP) stack heights
                                                EPA is proposing to find that                                         modeling system was the current                        and building downwash was performed
                                                Kentucky’s inventory is sufficiently                                  regulatory version at the time Kentucky                using BPIPPRIME version 04274. The
                                                comprehensive and accurate to serve the                               was preparing the attainment                           results of the downwash analysis show
                                                planning purposes for which the                                       demonstration. Appendix 3 in                           that the actual stack heights at the Mill
                                                inventory is required. Therefore, EPA is                              Kentucky’s June 23, 2017, submittal,                   Creek facility exceed the GEP heights, so
                                                proposing to determine the Jefferson                                  provides a summary of the modeling                     the GEP stack heights for each stack
                                                County SO2 attainment SIP meets the                                   procedures and options, including                      were used in the modeling. EPA
                                                requirements of CAA section 172(c)(3)                                 details explaining how they applied the                proposes to find the model selection
                                                and (4) for the Jefferson County                                      Auer technique to determine that the                   and procedures used to run the model
                                                nonattainment area.                                                   rural dispersion coefficients were                     appropriate.
                                                B. Attainment Modeling Demonstration                                  appropriate for the modeling. Model                    2. Meteorological Data
                                                                                                                      receptors were located throughout the
                                                  The following discussion is an                                      nonattainment area using a grid with                    The Commonwealth incorporated the
                                                evaluation of various features of the                                 100 meters spacing between receptors.                  most recently available five years of
khammond on DSK30JT082PROD with PROPOSAL




                                                  11 Title V operating permit 145–97–TV(R3) issued                    indicates the SO2 emissions reductions from              13 Mill Creek is the only point source in the

                                                by Jefferson County is in the Docket (ID: EPA–R04–                    sources outside of the nonattainment area are not      nonattainment Area.
                                                OAR–2017–0625) for this proposal action.                              required to demonstrate attainment but                   14 Table 5 of Kentucky’s 2017 attainment SIP lists
                                                  12 Kentucky developed an adjusted 2018                              acknowledges decreases in other source SO2 point
                                                                                                                                                                             the county-level projected emissions. EPA applied
                                                                                                                      source emissions with the replacement from coal-
                                                projected attainment year inventory to account for                    fired units to other fuel at LG&E Cane Run,            the 0.42 percent to the county-level on-road,
                                                SO2 emission reductions from additional point                         University of Louisville (99 percent decrease), and    nonroad and area source categories in Table 5 to
                                                sources in the County including LG&E Mill Creek                       Duke Energy’s Gallagher Electric Generating Station    derive the emissions for the partial county
                                                and Cane Run. The attainment SIP submission                           (92 percent decrease) in Floyd County, Indiana.        nonattainment area.



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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                                   56009

                                                meteorology data from 2011–2015, as                     from these AERMOD modeling                            Rule.15 Jefferson County issued a
                                                measured at a spatially representative                  simulations that an hourly emission                   construction permit (No. 34595–12–C)
                                                National Weather Service airport site.                  limit of 0.29 lb/MMBtu would suffice to               on June 15, 2012, to LG&E authorizing
                                                The 1-minute surface-level data came                    ensure modeled attainment of the SO2                  the construction for wet FGD control
                                                from the Louisville Standiford Field                    NAAQS. However, the Commonwealth                      equipment replacements for the four
                                                station in Louisville, Kentucky located                 opted to apply a 30-day average limit,                coal-fired boilers at the Mill Creek
                                                about 20 kilometers (km) to the                         following EPA’s SO2 nonattainment                     facility. This construction permit also
                                                northeast of the facility. Twice daily                  guidance for setting longer term average              included a 0.20 lb/MMBtu limit for SO2
                                                upper-air meteorological information                    limits. The Commonwealth determined                   as a surrogate for the hydrochloric acid
                                                came from the Wilmington Air Park,                      that a 30-day average limit of 0.20 lb/               gas requirements for MATS. This
                                                Wilmington, Ohio station located about                  MMBtu could be considered                             emission limit was incorporated into the
                                                240 km to the northeast. The surface                    comparably stringent to a 1-hour limit of             title V permit on July 31, 2014, (145–97–
                                                characteristics of the meteorological                   0.29 lb/MMBtu. Section IV.B.4.ii below,               TV (R2)). LG&E was required to comply
                                                surface station were processed using                    entitled ‘‘Longer Term Average Limits,’’              with the MATS Rule by April 2016.16
                                                AERSURFACE version 13016 following                      provides more discussion on how the                   Effective June 8, 2016, the Mill Creek
                                                EPA-recommended procedures and                          Commonwealth made this                                facility completed installation of
                                                were determined to be representative of                                                                       improved wet FGD SO2 controls on all
                                                                                                        determination.
                                                the facility by the Commonwealth. EPA                                                                         three stacks, which has reduced SO2
                                                proposes to find that the meteorological                4. Emission Limits                                    emissions by approximately 89 percent
                                                data selection and processing are                                                                             since 2014 emission levels.17
                                                appropriate.                                               An important prerequisite for                         As discussed further in the RACT/
                                                                                                        approval of an attainment plan is that                RACM section 1V.C below, Kentucky
                                                3. Emissions Data                                       the emission limits that provide for                  determined that the wet FGD
                                                   As previously stated, Mill Creek is the              attainment be quantifiable, fully-                    replacements at Mill Creek provide for
                                                only SO2 emitting major point source in                 enforceable, replicable, and                          SO2 emission reductions that model
                                                the nonattainment area and the only                     accountable. See General Preamble at                  attainment for the Jefferson County
                                                emission source explicitly modeled in                   13567–68. Therefore, part of the review               nonattainment area. With respect to the
                                                the attainment modeling analysis for the                of Kentucky’s attainment plan must                    1-hour SO2 standard, Kentucky
                                                Jefferson County nonattainment area.                    address the use of these limits, both                 established an independent emission
                                                All minor area sources and other major                  with respect to the general suitability of            limit of 0.20 lb/MMBtu, for each coal-
                                                point sources (located outside the                      using such limits for this purpose and                fired unit at Mill Creek on a 30-day
                                                nonattainment area boundary) were                       with respect to whether the limits                    average basis in accordance with EPA’s
                                                accounted for with the background                       included in the plan have been suitably               SO2 nonattainment guidance for longer
                                                concentration discussed in Section                      demonstrated to provide for attainment.               term averaging time for the purpose of
                                                IV.B.5. Mill Creek operates four coal-                  The first subsection that follows                     demonstrating attainment for the 1-hour
                                                fired boiler units (U1 thru U4) that emit               addresses the enforceability of the limits            SO2 standard (see section IV.B.4. ii).
                                                from three stacks. Unit 1 and Unit 2                                                                          These emission limits apply
                                                                                                        in the plan, and the second subsection
                                                have a joint stack (S33) while Unit 3 and                                                                     independently to each of the four coal-
                                                                                                        that follows addresses the 30-day
                                                Unit 4 have separate stacks (S4 and S34,                                                                      fired units (U1 thru U4), which emit
                                                                                                        average limits.
                                                respectively). Mill Creek replaced its                                                                        SO2 from three separate stacks (S33, S4,
                                                wet FGD Units on all stacks to improve                  i. Enforceability                                     and S34). Unit 1 and Unit 2 share a
                                                SO2 reduction efficiencies. All FGD                                                                           common stack (S33) while Unit 3 and
                                                construction was completed and                             Section 172(c)(6) provides that                    Unit 4 have separate stacks (S4 and S34,
                                                operational by June 8, 2016.                            emission limits and other control                     respectively). These SO2 limits were
                                                   The Commonwealth evaluated the                       measures in the attainment SIP shall be               established in a revised title V operating
                                                emissions from Mill Creek and derived                   enforceable. Kentucky’s attainment SIP                permit 145–97–TV(R3) for Mill Creek
                                                a set of three SO2 critical emission                    for the Jefferson County nonattainment
                                                values (CEVs), one for each stack, from                 area relies on control measures and                      15 On December 16, 2011, EPA established the

                                                AERMOD modeling simulations to show                     enforceable emission limits for the four              MATS Rule to reduce emissions of toxic air
                                                compliance with the 2010 SO2 NAAQS.                                                                           pollutants for coal or oil power plants larger than
                                                                                                        coal-fired boilers at Mill Creek. These               25 megawatts. The rule establishes alternative
                                                The AERMOD modeling analysis                            emission reduction measures were                      numeric emission standards, including SO2 (as an
                                                resulted in the following CEV’s: Stack                  accounted for in the attainment                       alternate to hydrochloric acid), individual non-
                                                S33, which serves Units 1 and 2, was                    modeling for Mill Creek, which                        mercury metal air toxics (as an alternate to
                                                modeled at 225.4 grams/second (g/s)                                                                           particulate matter (PM)), and total non-mercury
                                                                                                        demonstrates attainment for the 2010                  metal air toxics (as an alternate to PM) for certain
                                                equivalent to 1,789 lb/hr; stack S4,                    SO2 NAAQS. Kentucky’s control                         subcategories of power plants. CAA section 112,
                                                which serves Unit 3, was modeled at                     strategy for the Jefferson County                     MACT regulations for coal-and oil fired EGUs,
                                                152.6 g/s equivalent to 1,211 lb/hr; and                nonattainment area consists of replacing              known as the Mercury and Air Toxics Standards,
                                                stack S34, which serves Unit 4, was                                                                           were targeted at reducing EGU emissions of HAPs
                                                                                                        FGD control equipment with more                       (e.g., mercury, hydrochloric acid (HCl), hydrogen
                                                modeled at 183.6 g/s equivalent to 1,457                efficient FGD controls at Mill Creek,                 fluoride (HF), dioxin, and various metals) and not
                                                lb/hr. In each case, the modeled                        addressing SO2 emissions for all four                 explicitly targeted at reducing emissions of SO2.
                                                emission rate corresponds to 0.29                       units (U1, U2, U3 and U4): Unit 4 new
                                                                                                                                                              Under the MATS, EGUs meeting specific criteria
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                                                pounds per million British thermal                                                                            may choose to demonstrate compliance with
                                                                                                        FGD went into service on December 9,                  alternative SO2 emission limits in lieu of
                                                units (lb/MMBtu) times the maximum                      2014; Units 1 and 2 new combined FGD                  demonstrating compliance with HCl emission
                                                heat input capacity (MMBtu/hr) of the                   went into service on May 27, 2015; and                limits.
                                                unit(s) associated with each stack. This                                                                         16 Mill Creek was required to comply with the
                                                                                                        Unit 3 new FGD went into service on                   MATS Rule by April 16, 2016 (extended
                                                form of an emission limit, in lb/MMBtu,
                                                                                                        June 8, 2016.                                         compliance date).
                                                is a frequent form of emission limit                                                                             17 Mill Creek annual SO emissions have
                                                associated with electric generating                        LG&E installed wet FGD replacements                                            2
                                                                                                                                                              dropped, from 28,149 tons in 2014 to 3,040 tons in
                                                units. The Commonwealth determined                      at Mill Creek to comply with the MATS                 2017. See https://ampd.epa.gov/ampd/.



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                                                56010                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                and became effective on April 5, 2017.                  performed by Jefferson County and the                 above) and using hourly emission data
                                                Mill Creek demonstrates compliance                      Commonwealth to determine an                          provided by EPA’s Air Markets Program
                                                with the 30-day emission limits through                 appropriate CEV, in g/s, for each of the              Data database for Mill Creek for the
                                                a continuous emission monitoring                        three stacks (stack S33, which serves                 period 2009–2013 (i.e., before the wet
                                                system on each stack as well as the                     Units 1 and 2, was modeled at 225.4 g/                FGD replacements), Kentucky
                                                monitoring of the heat input firing rate                s; stack S4, which serves Unit 3, was                 determined an adjustment factor of 0.69.
                                                of each emission unit. The 30-day SO2                   modeled at 152.6 g/s; and stack S34,                  Multiplication of this adjustment factor
                                                emission limit was established to                       which serves Unit 4, was modeled at                   times the candidate 1-hour limit yielded
                                                demonstrate modeled attainment of the                   183.6 g/s). The corresponding candidate               the 0.20 lb/MMBtu 30-day average
                                                2010 1-hour SO2 standard for the                        1-hour emission factor limits (in lb/                 permit limit that Kentucky established
                                                Jefferson County nonattainment area                     MMBtu) may be calculated by first                     in Mill Creek’s title V permit effective
                                                and therefore is separate from the SO2                  converting these g/s CEV values to lb/                April 5, 2017. The period from 2009 to
                                                emission limit of the same numerical                    hr (using a standard unit conversion                  2013 was a period of stable operation
                                                value established to comply with the                    factor of 1 g/s = 7.937 lb/hr) and then               prior to the wet FGD replacements
                                                2012 MATS Rule (i.e., SO2 as a surrogate                dividing by the maximum heat input                    (which were made between late 2014 to
                                                for hydrochloric acid). These two limits                capacity of each unit, in MMBtu/hr. In                mid-2016), a time when similar but less
                                                were independently established through                  each case, the CEV corresponds to an                  efficient wet FGDs were used for SO2
                                                unique methodologies and guidance to                    emission factor of 0.29 lb/MMBtu. Since               emission control for each coal-fired
                                                address distinct and separate CAA                       Units 1 and 2 share a stack (S33), the                unit. EPA believes that these data were
                                                requirements for the LG&E Mill Creek                    relevant maximum heat input capacity                  the best data available at the time to
                                                facility. Kentucky requested that EPA                   was the combined value for both units                 Kentucky for estimating the variability
                                                incorporate into the Jefferson County                   (6,170 MMBtu/hr total). Unit 3 has a                  of emissions to be expected at Mill
                                                portion of the Commonwealth’s SIP the                   maximum heat input capacity of 4,204                  Creek upon compliance with the permit
                                                30-day SO2 emission limits and                          MMBtu/hr and vents to a single stack                  limits. At the time Kentucky conducted
                                                operating and compliance parameters                     (S4), and Unit 4 has a maximum heat                   its assessment, only a small amount of
                                                (monitoring, record keeping and                         input capacity of 5,025 MMBtu/hr and                  post-replacement data was available.
                                                reporting) established at Plant-wide                    vents to a single stack (S34).                        Use of a mix of pre-replacement and
                                                Specific condition S1-Standards, S2-                       As discussed further below, Kentucky               post-replacement data would have
                                                Monitoring and Record Keeping and S3-                   used the procedures in EPA’s April                    yielded a distorted analysis of
                                                Reporting 18 in title V permit 145–97–                  2014 SO2 nonattainment guidance to                    variability. Therefore, the 2009 to 2013
                                                TV(R3).19 The accountability of the SO2                 determine a compliance ratio                          data from Mill Creek provided the best
                                                emission limits is established through                  (adjustment factor) of 0.69, which when               representation available to Kentucky of
                                                KDAQ’s request to include the limits in                 multiplied by 0.29 lbs/MMBTU yields a                 the variability of emissions to be
                                                the SIP and in the attainment modeling                  30-day average limit of 0.20 lbs/                     expected from this plant.
                                                demonstration to ensure permanent and                   MMBTU. Each of the four emission                         Additionally, the 2009–2013
                                                enforceable emission limitations as                     units were subject to this 0.20 lb/                   emissions data set yielded an
                                                necessary to provide for attainment of                  MMBtu 30-day average permit limit                     adjustment factor slightly lower (more
                                                the 2010 SO2 NAAQS.                                     effective April 5, 2017. EPA generally                conservative) than the average 30-day
                                                                                                        defines the term CEV to mean the 1-                   adjustment factor (0.71) included in
                                                ii. Longer Term Average Limits                          hour emission rate for an individual                  Table 1 of Appendix D of EPA’s SO2
                                                   Kentucky established an emission                     stack that, in combination with the                   nonattainment guidance for emission
                                                limit of 0.20 lb/MMBtu of SO2                           other CEVs for other relevant stacks, is              sources with wet scrubbers. The results
                                                emissions, for each individual coal-fired               shown through proper modeling to yield                provided in Appendix D were intended
                                                emission unit at Mill Creek, on a 30-day                attainment. As mentioned above,                       to provide insight into the range of
                                                average basis. This emission limit                      Kentucky developed a set of CEVs (one                 adjustment factors that may be
                                                applies individually to each of the four                per stack) in each case corresponding to              considered typical. For these reasons,
                                                coal-fired units (U1 thru U4), which                    an hourly limit of 0.29 lb/MMBtu and                  EPA believes the 0.69 adjustment factor
                                                emit SO2 from three stacks. Unit 1 and                  demonstrated with AERMOD modeling                     calculated by Kentucky is an
                                                Unit 2 have a joint stack (Stack ID S33)                that these CEVs show modeled                          appropriate estimate of the degree of
                                                while Unit 3 and Unit 4 each have                       compliance with the NAAQS. Unit 1                     adjustment needed to derive a
                                                separate stacks (Stack IDs S4 and S34,                  and Unit 2 have a joint stack (S33) and               comparably stringent 30-day average
                                                respectively). As discussed above in the                a combined wet FGD control, while Unit                emission limit for this facility.
                                                emissions data section, modeling was                    3 and Unit 4 have separate stacks (S4                    In accordance with EPA’s SO2
                                                                                                        and S34, respectively), each with                     nonattainment guidance, the
                                                  18 The plant-wide specific conditions S2-             individual wet FGD controls.                          Commonwealth used the distribution of
                                                Monitoring and Recordkeeping and S3-Reporting              EPA’s SO2 nonattainment guidance                   hourly emissions to determine a
                                                reference specific compliance parameters for the 30-    recommends that any longer term                       corresponding distribution of 30-
                                                day SO2 emission limit for each individual EGU
                                                (U1, U2, U3 and U4). Therefore, the specific SO2
                                                                                                        average emission limit should be                      operating day longer term emission
                                                monitoring and recordkeeping and reporting              comparably stringent to the 1-hour limit              averages at the end of each operating
                                                requirements, for each EGU are located at the           that has been shown to provide for                    day. The 99th percentile of the 1-hour
                                                Specific Conditions S2-Monitoring and                   attainment of the 2010 SO2 standard.                  average emission values and the 4th
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                                                Recordkeeping (b) and S3-Reporting (b) for SO2.
                                                  19 EPA notes that Kentucky originally requested
                                                                                                        The guidance recommends a procedure,                  maximum value of the 30-day average
                                                that EPA incorporate into the Kentucky SIP the per
                                                                                                        detailed in Appendix C, for determining               emission values 20 for each year were
                                                unit SO2 emission limits for Mill Creek along with      an adjustment factor which may be
                                                compliance parameters that were established in title    multiplied times the candidate 1-hour                   20 EPA notes that the SO nonattainment guidance
                                                                                                                                                                                         2
                                                V permit 145–97–TV(R2). However, through a              limit to derive a longer term limit that              recommends the compliance ratio be determined
                                                supplement Louisville has subsequently requested                                                              based on the 99th percentile of 30-day values
                                                EPA incorporate portions of permit 145–97–TV(R3)
                                                                                                        may be estimated to be comparably                     instead of the 4th maximum value used by
                                                which contains the new 0.20 lb/mmBtu per unit           stringent to the 1-hour limit. Using this             Kentucky. Kentucky also computed the compliance
                                                emission limit based on a 30-day averaging time.        procedure (discussed in section II                    ratio using the 99th percentile and determined that



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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                         56011

                                                calculated, then the average value of the               magnitude and, if they occur, would not                 The Commonwealth requested EPA
                                                five years’ 99th percentile value was                   be expected to result in NAAQS                        approve into the Jefferson County
                                                determined. The adjustment factor was                   violations.’’ For this purpose, EPA                   portion of the Kentucky SIP, the 30-day,
                                                calculated as the ratio of the 99th                     analyzed Air Markets Program Data                     0.20 lb/MMBtu SO2 emission limit for
                                                percentile for the longer term average to               available from EPA. Mill Creek                        each boiler as well as operating and
                                                the 99th percentile hourly average                      completed replacements of the FGD                     compliance parameters (monitoring and
                                                emissions for each of the four boilers at               equipment during the period from                      reporting requirements) established in
                                                Mill Creek, separately. The adjustment                  December 2014 to June 2016. EPA                       Mill Creek’s title V permit 145–97–TV
                                                factors for each of the four units (0.64,               believes that the emissions data                      (R3). EPA has evaluated these emissions
                                                0.68, 0.75 and 0.68) were averaged                      available after completion of the                     limits and proposes to determine that
                                                together to arrive at a single compliance               replacements are the data that best                   these limits provide for attainment of
                                                ratio of 0.69. The average compliance                   indicate the likely frequency of hourly               the 2010 SO2 NAAQS.
                                                ratio was then applied to the 0.29 lb/                  emission levels above the critical
                                                                                                                                                              5. Background Concentration
                                                MMBtu hourly emission rate to create a                  emission value. At the time EPA
                                                comparably stringent long term (30-day)                 conducted its analysis, these data were                  Background concentrations of SO2
                                                emission limit of 0.20 lb/MMBtu, which                  available through the end of March                    were included in the modeling using
                                                was imposed on each emission unit                       2018. Therefore, in addition to the                   2013–2015 season-by-hour monitoring
                                                individually. EPA believes that use of                  analysis submitted by Kentucky, EPA                   data from the Green Valley Road
                                                an average adjustment factor is a                       analyzed hourly emissions obtained                    monitor (AQS ID: 18–043–1004) located
                                                suitable means of projecting future                     from the EPA Air Markets Program Data                 in New Albany, Indiana. Use of the
                                                variability of the four units at the plant              for Mill Creek for the period April 2016              season-by-hour data is one of the
                                                because the use of an average                           to March 2018,21 which encompasses                    approaches for calculating background
                                                adjustment factor is likely to yield                    the time after all the wet FGD                        concentrations provided in the SO2
                                                similar results to use of unit-specific                 replacements were completed and the                   nonattainment guidance. The season-by-
                                                adjustment factors; indeed, Kentucky                    facility was operating under a 0.20 lb/               hour background values ranged from
                                                determined that annual potential total                  MMBtu emission limitation. During this                2.13 ppb to 20.67 ppb. This monitor is
                                                SO2 emissions based on use of an                        time Units 1, 2 and 3 did not have any                located approximately 29 km to the
                                                average adjustment factor (with a limit                 30-day average values above 0.20 lb/                  north of the Mill Creek facility in the
                                                of 0.20 lb/MMBtu for all units) are about               MMBtu, these units each had only 0.1                  vicinity of many SO2 emissions sources,
                                                137 tpy less than would be allowed with                 percent of the hours exceeding the                    including the Duke Energy Indiana,
                                                limits of 0.29 lb/MMBtu adjusted by                     ‘‘critical emission factor’’ of 0.29 lb/              LLC, Gallagher Generating Station coal-
                                                unit-specific adjustment factors.                       MMBtu. Although Unit 4 slightly                       fired power plant with 3,500 tpy of SO2
                                                   Based on a review of the                             exceeded 0.20 lb/MMBtu approximately                  emissions in 2014, which is located
                                                Commonwealth’s submittal and EPA’s                      5.4 percent of the 30-day averages                    approximately 5 km upwind of the
                                                additional analysis described below,                    during this period (based on Kentucky’s               monitor. This source, along with other
                                                EPA believes that the 30-day average                    compliance determination procedures),                 sources in the area upwind of the
                                                0.20 lb/MMBtu limit for each of the four                this unit only exceeded the ‘‘critical                monitor (including numerous small area
                                                boilers at Mill Creek provides a suitable               emission factor’’ of 0.29 lb/MMBtu for                sources in the City of Louisville and the
                                                alternative to establishing a 1-hour                    0.5 percent of the hours. Therefore, EPA              Louisville Gas and Electric Company,
                                                average emission limit for each unit at                 is proposing to conclude that Mill Creek              Cane Run Station power plant), emitted
                                                this source. The Commonwealth has                       can reasonably be expected to exceed                  approximately 13,000 tpy of SO2 in
                                                used a suitable data base and has                       the critical emission value only rarely.              2014. The background concentrations
                                                derived an adjustment factor that yields                For details of this analysis, please refer            from the Green Valley ambient air
                                                an emission limit that has comparable                   to the spreadsheet titled ‘‘Mill Creek                monitor were used by the
                                                stringency to the 1-hour average limit                  Analysis of Values Above the Critical                 Commonwealth to account for SO2
                                                that Kentucky determined would                          Emission Rate’’ in the Docket for this                impacts from all sources besides the
                                                otherwise have been necessary to                        proposal action.                                      Mill Creek facility, which was explicitly
                                                provide for attainment. While the 30-                      For reasons described above and                    modeled with AERMOD to develop an
                                                day rolling average limit allows                        explained in more detail in EPA’s SO2                 appropriate emissions limit. The
                                                occasions in which emissions may be                     nonattainment guidance, EPA believes                  Commonwealth evaluated other SO2
                                                higher than the level that would be                     appropriately set longer term average                 monitors in the Louisville area that are
                                                allowed with the 1-hour limit, the                      limits provide a reasonable basis by                  closer to the Mill Creek facility and the
                                                Commonwealth’s limit compensates by                     which nonattainment plans may                         nonattainment area, including the
                                                requiring average emissions to be lower                 provide for attainment. Based on its                  Watson Lane (AQS ID: 21–111–0051),
                                                than the level that would otherwise                     review of this information as well as the             Cannons Lane (AQS ID: 21–111–0067)
                                                have been required by a 1-hour average                  information in the Commonwealth’s                     and Algonquin Parkway/Firearms
                                                limit.                                                  plan, EPA proposes to find that the 30-               Training (AQS ID: 21–111–1041)
                                                   EPA’s SO2 nonattainment guidance                     day average limits for Mill Creek                     monitors. However, the Commonwealth
                                                recommends evaluating ‘‘whether the                     provide for attainment of the SO2                     determined that each of these monitors
                                                longer term average limit, potentially in               standard. Furthermore, EPA notes that                 had issues with data completeness
                                                combination with other limits, can be                   2015–2017 quality-assured and certified               during the 2013–2015 timeframe and
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                                                expected to constrain emissions                         design value for the Watson Lane                      thus were not available for use in their
                                                sufficiently so that any occasions of                   monitor (AQS ID: AQS ID: 21–11–0051)                  modeling analysis.
                                                                                                                                                                 EPA is supplementing the attainment
                                                emissions above the critical emission                   in the nonattainment area is 31 ppb,
                                                                                                                                                              demonstration modeling provided by
                                                value will be limited in frequency and                  which is below the 1-hour SO2 standard.
                                                                                                                                                              the Commonwealth with an
                                                the individual compliance ratios for each unit did        21 FGD replacements were not complete for Unit      independent analysis to assess the
                                                not change because the 99th percentile values are       3 until June 2016, so the period analyzed for Unit    conclusion that the Green Valley
                                                close to the 4th maximum values.                        3 was from July 2016 to March 2018.                   background monitor adequately


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                                                56012                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                represents background concentrations of                 The height of the cement kiln stack at                NEI) located upwind of the monitor and
                                                SO2 within this nonattainment area,                     Kosmos is 75 feet (approximately 23                   contribute to the measured SO2 season-
                                                including the impact from Kosmos that                   meters) and there are no significant                  by-hour concentrations in 2013–2015
                                                is located outside but adjacent to the                  terrain features located near Kosmos or               that ranged from 2.13 ppb to 20.67 ppb.
                                                nonattainment area to the southeast of                  within the nonattainment area                           EPA used its Emissions Inventory
                                                the Mill Creek facility. The                            boundary. Evaluating the concentration                System (EIS) Gateway to obtain
                                                Commonwealth states in its submission                   gradients for Kosmos using the ‘‘10                   emissions data for Kosmos for
                                                that the Green Valley monitor was                       times stack height’’ general rule of                  comparison to the emissions sources
                                                determined to be the most appropriate                   thumb indicates that concentration                    impacting the Green Valley monitor.
                                                and representative background monitor                   gradients should be comparatively                     The EIS Gateway data for Kosmos show
                                                for the demonstration and that it                       modest beyond 230 meters from the                     SO2 emissions of 207 tpy in 2014, 289
                                                accounts for impacts from all sources                   stack. The closest edge of the                        tpy in 2015, and 364 tpy in 2016. These
                                                not explicitly modeled, including                       nonattainment boundary is                             emissions data demonstrate that
                                                Kosmos. As described below, EPA’s                       approximately 480 meters from the                     Kosmos’ SO2 emissions are much less
                                                independent analysis supports KDAQ’s                    stack, which is more than twice the                   than the emissions sources that are
                                                conclusion that the Green Valley                        distance of this general rule of thumb.               contributing to the measured
                                                monitor adequately represents impacts                   Therefore, EPA believes that the SO2                  concentrations at the Green Valley
                                                from all unmodeled sources including                    emissions from Kosmos likely would                    background monitor. While Kosmos is
                                                those from Kosmos.                                      not result in a significant concentration             located much closer to the
                                                   EPA evaluated whether Kosmos,                        gradient within the nonattainment area                nonattainment area boundary
                                                which is located in close proximity to                  boundary.                                             (approximately 0.5 km) than the
                                                the nonattainment area boundary (less                     EPA also evaluated whether the Green                distance the larger sources of emissions
                                                than 0.50 km), should be considered a                   Valley background monitor data is                     are from the Green Valley monitor (from
                                                ‘‘nearby source’’ or an ‘‘other source’’ as             adequately representative of potential                5 km to 15 km), the sources near the
                                                these terms are defined in Section 8.3.1                SO2 concentration impacts from Kosmos                 Green Valley monitor have more than an
                                                of EPA’s Guideline contained in 40 CFR                  within the nonattainment area. This                   order of magnitude more emissions than
                                                part 51, Appendix W (Appendix W).22                     evaluation consisted of an assessment of              Kosmos. EPA believes that the net effect
                                                Section 8.3.1.a.i of Appendix W                         wind patterns in the Louisville area, the             of these compensating differences is that
                                                discusses evaluating significant                        SO2 emissions sources in the vicinity of              the Green Valley monitor reasonably
                                                concentration gradient in the vicinity of               the Green Valley monitor, and                         indicates the impact of Kosmos on the
                                                the source under consideration for SIP                  comparing those sources to the Kosmos                 nonattainment area.
                                                emissions limits for determining if other               source. EPA evaluated wind data from                    Based upon EPA’s analyses
                                                sources in the area are adequately                      2011–2015 from the Louisville                         summarized above, EPA is proposing to
                                                represented by background ambient                       Standiford Field Airport to determine                 concur with the Commonwealth’s use of
                                                monitoring. Section 8.3.3.b.ii of                       the predominant wind patterns. The                    ambient SO2 concentration data from
                                                Appendix W further describes the                        results of this analysis show that winds              the Green Valley monitor to account for
                                                assessment of concentration gradients                   blow predominately from the southeast,                potential impacts from Kosmos and all
                                                and states that ‘‘the magnitude of a                    south and southwest directions. EPA                   other emissions sources located outside
                                                concentration gradient will be greatest                 then identified significant SO2                       the nonattainment area that were not
                                                in the proximity of the source and will                 emissions sources located south,                      explicitly modeled in the attainment
                                                generally not be significant at distances               southeast and southwest of the Green                  demonstration modeling analysis.
                                                greater than 10 times the height of the                 Valley monitor. The Commonwealth                      6. Summary of Modeling Results
                                                stack(s) at that source without                         used Green Valley ambient
                                                consideration of terrain influences.’’                                                                           The AERMOD modeling resulted in a
                                                                                                        concentration data from the 2013–2015
                                                                                                                                                              maximum modeled design value of
                                                                                                        time period for the background
                                                   22 EPA had previously indicated that Kosmos                                                                190.1 micrograms per cubic meter or
                                                                                                        concentrations. Therefore, EPA used
                                                should be treated as a ‘‘nearby source.’’ This                                                                72.6 ppb, including the background
                                                position was communicated to the Commonwealth           SO2 emissions data contained in the
                                                                                                                                                              concentration, which is below the 1-
                                                in comments on the Prehearing Attainment                2014 NEI to evaluate sources in the                   hour SO2 NAAQS of 75 ppb. As
                                                Demonstration SIP in a letter dated April 18, 2017.     vicinity of the Green Valley monitor.
                                                EPA has subsequently performed additional                                                                     discussed above, the AERMOD
                                                                                                        EPA’s evaluation of sources in the 2014
                                                analysis (discussed later in this section), and                                                               modeling used hourly SO2 emissions for
                                                believes that it is appropriate to treat Kosmos as an   NEI found that a large coal fired power
                                                                                                                                                              each stack equivalent to the hourly SO2
                                                ‘‘other source,’’ which can be addressed using a        plant, the Duke Energy Indiana, LLC,
                                                representative ambient background concentration.                                                              emission rate of 0.29 lb/MMBtu, which
                                                                                                        Gallagher Generating Station, with SO2
                                                As an additional measure, Kentucky and Jefferson                                                              was used to derive the 30-day average
                                                County have elected to conduct air quality
                                                                                                        emissions of 3,500 tpy, is located                    emission limit for the four coal-fired
                                                monitoring to better characterize the ambient           approximately 5 km southwest of the                   boilers at the Mill Creek facility.
                                                concentrations of SO2 in the vicinity of the Kosmos     Green Valley monitor. Also, the                       Effective June 8, 2016, the Mill Creek
                                                facility through an agreed Board Order with             Louisville Gas and Electric Company,
                                                Kosmos. The Board Order, approved by Jefferson                                                                facility completed installation of
                                                County Board on April 19, 2017, requires the
                                                                                                        Cane Run Station reported 8,700 tpy of                improved wet FGD SO2 controls on all
                                                facility to deploy an ambient air monitor in            SO2 emissions in 2014 and is located
                                                                                                                                                              three stacks, and became subject the
                                                accordance with 40 CFR part 58 and EPA’s                approximately 15 km southwest of the                  new 30-day SO2 emission limits on
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                                                nonattainment guidance ‘‘SO2 NAAQS Designations         Green Valley monitor. Further, the City
                                                Source-Oriented Monitoring Technical Assistance                                                               April 5, 2017, which has reduced SO2
                                                                                                        of Louisville and its associated
                                                Document’’ (Monitoring TAD February 2016) and                                                                 emissions by approximately 89 percent
                                                includes a remediation plan indicating if monitored     numerous small area SO2 emissions
                                                                                                                                                              from 2014 emission levels.23
                                                violations of the NAAQS occur, Kosmos agrees to         sources (e.g., diesel vehicles and
                                                make changes to their operations to prevent future                                                            Furthermore, the Watson Lane
                                                                                                        generators) is located within 9 km
                                                violations. EPA Region 4 approved the monitor
                                                location in a letter dated February 1, 2018. Please
                                                                                                        southeast of the monitor. Combined,                     23 Mill Creek annual SO emissions have
                                                                                                                                                                                       2
                                                see the Board Order located in the Docket for this      these sources total over 13,000 tpy of                dropped, from 28,149 tons in 2014 to 3,040 tons in
                                                proposed rule at EPA–R04–OAR–2017–0625.                 SO2 emissions (according to the 2014                  2017. See https://ampd.epa.gov/ampd/.



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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                                   56013

                                                monitoring data trends during the                       since 2014 emission levels.24                         are required by this part or may
                                                timeframe corroborate the significant                   Furthermore, the monitoring data trends               reasonably be required by the
                                                SO2 reductions from Mill Creek facility,                during the time period corroborate the                Administrator for the purpose of
                                                supporting EPA’s view that limiting                     existence of the substantial air quality              ensuring attainment of the SO2 NAAQS
                                                Mill Creek emissions adequately will                    benefits from the significant SO2                     by the statutory attainment date.’’ For
                                                assure attainment. EPA has evaluated                    reductions from Mill Creek facility. The              pollutants like SO2 where a limited
                                                the modeling procedures, inputs and                     Watson Lane monitor has recorded                      number of sources affect air quality, the
                                                results and proposes to find that the                   decreasing SO2 concentrations from an                 General Preamble and the SO2
                                                results of the Commonwealth’s                           annual 99th percentile value of 148.6                 nonattainment guidance explain that
                                                modeling analysis demonstrate that the                  ppb in 2014, 54.2 ppb in 2015, 26.1 ppb               RFP is best construed as an ambitious
                                                limits on Mill Creek assure that there                  in 2016 and 13.7 ppb in 2017. Currently,              compliance schedule. As discussed
                                                will be no violations of the NAAQS                      the quality-assured and certified 2015–               above, LG&E completed installation of
                                                within the nonattainment area.                          2017, 3-year design value for the Watson              FGD replacement scrubbers for all four
                                                                                                        Lane monitor is 31 ppb, which is well                 coal-fired boilers at Mill Creek on June
                                                C. RACM/RACT                                                                                                  8, 2016 (Unit 4 new FGD went into
                                                                                                        below the 1-hour SO2 standard. In
                                                   CAA section 172(c)(1) requires that                  addition to the modeling demonstrating                service on December 9, 2014; Units 1
                                                each attainment plan provide for the                    attainment of the SO2 standard, actual                and 2’s new FGD went into service on
                                                implementation of all RACM as                           monitored 99th percentile of 1-hour                   May 27, 2015; and Unit 3 25 new FGD
                                                expeditiously as practicable (including                 daily maximum concentrations at the                   went into service on June 8, 2016) to
                                                such reductions in emissions from                       Watson Lane do not show violations of                 comply with EPA’s MATS extended
                                                existing sources in the area as may be                  the NAAQS. On this basis, Jefferson                   compliance date of April 16, 2016.
                                                obtained through the adoption, at a                     County determined that no additional                  However, for purposes of demonstrating
                                                minimum, of RACT) and shall provide                     measures could contribute to attainment               attainment of the 2010 SO2 standard,
                                                for attainment of the NAAQS.                            as expeditiously as practicable.                      Kentucky established an independent
                                                Additionally, 172(c)(6) require SIPs to                 Therefore, the FGD controls for the Mill              SO2 emission limit of 0.20 lb/MMBtu for
                                                contain enforceable emissions                           Creek Generating Station was                          Mill Creek (title V operating permit
                                                limitations and other control measures                  determined to constitute RACT/RACM                    145–97–TV(R3) based on the SO2
                                                to ‘‘provide for attainment’’ of the                    for the nonattainment area. Kentucky                  emission reductions from the FGD
                                                NAAQS. EPA interprets RACM,                             has determined that these measures                    replacement. All FGD controls are
                                                including RACT, under section 172, as                   suffice to provide for timely attainment.             currently installed and operational at
                                                measures that a state determines to be                  EPA preliminarily concurs with                        Mill Creek and the facility is currently
                                                reasonably available and which                          Kentucky’s approach and analysis, and                 complying with the 30-day emission
                                                contribute to attainment as                             proposes to conclude that the                         limits as of April 5, 2017 (the date the
                                                expeditiously as practicable for existing               Commonwealth has satisfied the                        revised title V permit was issued).26
                                                sources in the area.                                    requirement in section 172(c)(1) and (6)              EPA has evaluated these emissions
                                                   Kentucky’s plan for attaining the 1-                 to adopt and submit all RACT/RACM                     limits and proposes to determine that
                                                hour SO2 NAAQS in the Jefferson                         and emission limitations and control                  these limits provide for modeled
                                                County SO2 nonattainment area                           measures as needed to attain the                      attainment of the 2010 SO2 NAAQS in
                                                included a review of three control                      standard as expeditiously as practicable.             the Jefferson County nonattainment
                                                measures as potential options which                                                                           area.
                                                                                                        D. New Source Review (NSR)                               SO2 emissions within the
                                                could be implemented at Mill Creek to
                                                reduce ambient SO2 concentrations and                     EPA last approved Louisville’s NNSR                 nonattainment area have decreased
                                                attain the SO2 NAAQS: More efficient                    regulations 2.04—Construction or                      approximately 89 percent since 2014,
                                                scrubber operation; increased stack                     Modification of Major Sources in or                   which correlates to a reduction of SO2
                                                height; and restriction of high sulfur                  Impacting upon Non-Attainment Areas                   concentrations recorded at the Watson
                                                fuels. The Commonwealth in                              (Emissions Offset Requirements) on                    Lane monitor during this period.27
                                                coordination with the District                          October 23, 2001 (66 FR 53660). These                 Kentucky finds that this plan requires
                                                determined that FGD is the appropriate                  rules provide for appropriate NSR for                 the affected sources implement
                                                control strategy and represents RACT/                   SO2 sources undergoing construction or                appropriate control measures as
                                                RACM for the nonattainment area. The                    major modification in any                             expeditiously as practicable to ensure
                                                new controls increase Mill Creek’s                      nonattainment area in Jefferson County                attainment of the standard by the
                                                ability to control SO2 emissions from                   including the SO2 nonattainment area                  applicable attainment date. Mill Creek
                                                previously permitted levels, i.e., around               without need for modification of the
                                                                                                                                                                25 Unit 3 ceased operation on April 9, 2016, to
                                                90 percent, to a 98 percent removal rate.               approved rules. Therefore, EPA
                                                                                                                                                              comply with the extended MATS compliance date
                                                Emissions are expected to be reduced                    proposes to conclude that this                        and did not return to service until all controls and
                                                from actual emissions of 29,994 tpy in                  requirement is met for this Area through              construction necessary to comply with MATS were
                                                2011 to a projected post-control level of               Louisville’s existing NSR rules.                      completed.
                                                                                                                                                                26 See Mill Creek Generating Station title V
                                                13,489.5 tpy. Effective June 8, 2016, the               E. Reasonable Further Progress (RFP)                  operating permit No. 145–97–TV(R3) in the Docket
                                                Mill Creek facility completed                                                                                 (ID: EPA–R04–OAR–2017–0625) for this proposal
                                                installation of improved wet FGD SO2                       CAA section 172(c)(2) requires                     action.
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                                                controls on all three stacks, and became                attainment plan to require RFP, which                   27 According to CAMD data, annual SO
                                                                                                                                                                                                         2

                                                subject the new 30-day SO2 emission                     is defined in CAA section 171(1) as                   emissions have dropped, from 28,149 tons in 2014
                                                                                                        ‘‘annual incremental reductions in                    to 14,082 tons in 2015. Subsequent years have
                                                limits on April 5, 2017 (discussed in                                                                         reported further reductions with 4,335 tons in 2016
                                                section IV.B.4 above). The replaced FGD                 emissions of the relevant air pollutant as            and 3,040 tons in 2017. The Watson Lane monitor
                                                controls and April 5, 2017 compliance                                                                         (AQS ID: 21–111–0051), located less than 2 km east
                                                                                                          24 According to the CAMD data, Mill Creek           of the Mill Creek facility, recorded decreasing SO2
                                                with the 30-day SO2 emission limits has
                                                                                                        annual SO2 emissions have dropped, from 28,149        concentrations from an annual 99th percentile
                                                resulted in reduced SO2 emissions at                    tons in 2014 to 3,040 tons in 2017. See https://      value of 148.6 ppb in 2014, 54.2 ppb in 2015, 26.1
                                                Mill Creek by approximately 89 percent                  ampd.epa.gov/ampd/.                                   ppb in 2016 and 13.7 ppb in 2017.



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                                                56014                  Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules

                                                has met the limits in Kentucky’s plan by                detailed plan of action specifying                    requirements for RFP, RACT/RACM,
                                                the April 5, 2017 compliance date                       additional control measures to be                     NNSR, base-year and projection-year
                                                (effective date of the new 30-day SO2                   implemented no later than 18 months                   emission inventories, enforceable
                                                emission limits). Therefore, Kentucky                   after the notification. The additional                emission limits and control measures
                                                concludes that this plan provides for                   control measures will be submitted to                 and compliance parameters, and
                                                RFP in accordance with EPA’s April                      the EPA for approval and incorporation                contingency measures. Additionally,
                                                2014 SO2 nonattainment guidance.                        into the SIP. EPA preliminarily concurs               EPA is proposing to approve into the
                                                Currently, the Watson Lane monitor                      and proposes to approve Kentucky’s                    Jefferson County portion of the
                                                2015–2017 quality-assured and certified                 plan for meeting the contingency                      Kentucky SIP, Mill Creek’s enforceable
                                                SO2 design value is below the 1-hour                    measure requirement as described above                SO2 emission limits and compliance
                                                NAAQS at 31 ppb, EPA expects the                        and in the proposed SIP revision.                     parameters (monitoring and reporting)
                                                Area to show attainment of the 2010                                                                           established at Plant-wide Specific
                                                                                                        V. Incorporation by Reference
                                                standard by the statutory attainment                                                                          condition S1-Standards, S2-Monitoring
                                                date. EPA proposes to concur and                           In this rule, EPA is proposing to                  and Record Keeping and S3-Reporting
                                                concludes that the plan provides for                    include in a final EPA rule regulatory                established in title V permit 145–97–
                                                RFP, as specified in the General                        text that includes incorporation by                   TV(R3).
                                                Preamble and the SO2 nonattainment                      reference. In accordance with
                                                guidance, and therefore satisfies the                   requirements of 1 CFR 51.5, EPA is                    VII. Statutory and Executive Orders
                                                requirements of CAA section 172(c)(2).                  proposing to incorporate by reference                    Under the CAA, the Administrator is
                                                                                                        into the Jefferson County portion of the              required to approve a SIP submission
                                                F. Contingency Measures                                 Kentucky SIP, a SO2 emission limit and                that complies with the provisions of the
                                                   As noted above, EPA’s SO2                            specified compliance conditions                       Act and applicable Federal regulations.
                                                nonattainment guidance describes                        established in title V permit 145–97–                 See 42 U.S.C. 7410(k); 40 CFR 52.02(a).
                                                special features of SO2 planning that                   TV(R3) for each coal-fired emissions                  Thus, in reviewing SIP submissions,
                                                influence the suitability of alternative                unit at the LG&E Mill Creek Generating                EPA’s role is to approve state choices,
                                                means of addressing the requirement in                  station in Jefferson County                           provided that they meet the criteria of
                                                section 172(c)(9) for contingency                       nonattainment area. Specifically, EPA is              the CAA. This action merely proposes to
                                                measures for SO2, such that an                          proposing to incorporate into the                     approve state law as meeting Federal
                                                appropriate means of satisfying this                    Jefferson County portion of the                       requirements and does not impose
                                                requirement is for the Commonwealth to                  Kentucky SIP a 0.20 lb/MMBtu 30-day                   additional requirements beyond those
                                                have a comprehensive enforcement                        SO2 emission limit for each EGU (U1,                  imposed by state law. For that reason,
                                                program that identifies sources of                      U2, U3 and U4) and operating and                      this proposed action:
                                                violations of the SO2 NAAQS and to                      compliance conditions (monitoring,                       • Is not a significant regulatory action
                                                undertake an aggressive follow-up for                   recordkeeping and reporting) all                      subject to review by the Office of
                                                compliance and enforcement.                             established at Plant-wide Specific                    Management and Budget under
                                                Kentucky’s plan provides for satisfying                 condition S1-Standards, S2-Monitoring                 Executive Orders 12866 (58 FR 51735,
                                                the contingency measure requirement in                  and Record Keeping and S3-Reporting                   October 4, 1993) and 13563 (76 FR 3821,
                                                this manner. Jefferson County is                        in title V permit 145–97–TV(R3) for                   January 21, 2011);
                                                authorized by Kentucky Revised                          EGU U1, U2, U3 and U4. The SO2                           • Is not an Executive Order 13771 (82
                                                Statutes Chapter 77 to ensure that                      emission standards specified in the                   FR 9339, February 2, 2017) regulatory
                                                control strategies, including reasonably                permit are the basis for the attainment               action because SIP approvals are
                                                achievable control technology and                       demonstration. EPA has made, and will                 exempted under Executive Order 12866;
                                                contingency measures, necessary to                      continue to make, these materials                        • Does not impose an information
                                                attain the standard by the applicable                   generally available through                           collection burden under the provisions
                                                attainment date are implemented in the                  www.regulations.gov and at EPA Region                 of the Paperwork Reduction Act (44
                                                nonattainment area. Kentucky’s                          4 office (please contact the person                   U.S.C. 3501 et seq.);
                                                proposed SIP revision has been                          identified in the FOR FURTHER                            • Is certified as not having a
                                                developed in accordance with this                       INFORMATION CONTACT section of this                   significant economic impact on a
                                                authority. In addition, if a monitored                  preamble for more information).                       substantial number of small entities
                                                exceedance of the SO2 NAAQS occurs                                                                            under the Regulatory Flexibility Act (5
                                                                                                        VI. EPA’s Proposed Action
                                                in the future and all sources are found                                                                       U.S.C. 601 et seq.);
                                                to comply with applicable SIP and                          EPA is proposing to approve                           • Does not contain any unfunded
                                                permit emission limits, Jefferson County                Kentucky’s SO2 nonattainment SIP                      mandate or significantly or uniquely
                                                will perform the necessary analysis to                  submission, which the Commonwealth                    affect small governments, as described
                                                determine the cause of the exceedance,                  submitted to EPA on June 23, 2017, for                in the Unfunded Mandates Reform Act
                                                and determine what additional control                   attaining the 2010 1-hour SO2 NAAQS                   of 1995 (Public Law 104–4);
                                                measures are necessary to impose on the                 for the Jefferson County nonattainment                   • Does not have Federalism
                                                Area’s stationary sources to continue to                area and for meeting other                            implications as specified in Executive
                                                maintain attainment of the SO2 NAAQS.                   nonattainment area planning                           Order 13132 (64 FR 43255, August 10,
                                                Jefferson County will inform any                        requirements. EPA has preliminarily                   1999);
                                                affected stationary sources of SO2 of the               determined that the nonattainment SIP                    • Is not an economically significant
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                                                potential need for additional control                   meets the applicable requirements of                  regulatory action based on health or
                                                measures. If there is a violation of the                sections 110, 172, 191 and 192 of the                 safety risks subject to Executive Order
                                                NAAQS for SO2 within the                                CAA and nonattainment regulatory                      13045 (62 FR 19885, April 23, 1997);
                                                nonattainment area, then Jefferson                      requirements at 40 CFR part 51. This                     • Is not a significant regulatory action
                                                County will notify the stationary source                SO2 nonattainment plan includes                       subject to Executive Order 13211 (66 FR
                                                that the potential exists for a NAAQS                   Kentucky’s attainment demonstration                   28355, May 22, 2001);
                                                violation. Within six months of                         for the Jefferson County nonattainment                   • Is not subject to requirements of
                                                notification, the source must submit a                  area and other nonattainment                          Section 12(d) of the National


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                                                                       Federal Register / Vol. 83, No. 218 / Friday, November 9, 2018 / Proposed Rules                                                56015

                                                Technology Transfer and Advancement                     FOR FURTHER INFORMATION CONTACT:      For             number in the first sentence to say,
                                                Act of 1995 (15 U.S.C. 272 note) because                questions about this proposed action,                 ‘‘Instructions. Direct your comments to
                                                application of those requirements would                 contact Andrew Sheppard, Sector                       Docket ID No. EPA–HQ–OAR–2018–
                                                be inconsistent with the CAA; and                       Policies and Programs Division (E143–                 0696.’’
                                                  • Does not provide EPA with the                       03), Office of Air Quality Planning and                  In the sixth paragraph of the section,
                                                discretionary authority to address, as                  Standards, U.S. Environmental                         in the third column, revise the docket
                                                appropriate, disproportionate human                     Protection Agency, Research Triangle                  number in the last sentence to say,
                                                health or environmental effects, using                  Park, North Carolina 27711; telephone                 ‘‘Send or deliver information identified
                                                practicable and legally permissible                     number: (919) 541–4161; fax number:                   as CBI only to the following address:
                                                methods, under Executive Order 12898                    (919) 541–0516; and email address:                    OAQPS Document Control Officer
                                                (59 FR 7629, February 16, 1994).                        sheppard.andrew@epa.gov.                              (C404–02), OAQPS, U.S. Environmental
                                                  The SIP is not approved to apply on                   SUPPLEMENTARY INFORMATION: In                         Protection Agency, Research Triangle
                                                any Indian reservation land or in any                   proposed rule FR 2018–23700, in the                   Park, North Carolina 27711, Attention
                                                other area where EPA or an Indian tribe                 issue of Tuesday, October 30, 2018, on                Docket ID No. EPA–HQ–OAR–2018–
                                                has demonstrated that a tribe has                       page 54527, in the third column, correct              0696.’’
                                                jurisdiction. In those areas of Indian                  the docket numbers listed in the                        Dated: November 2, 2018.
                                                country, the rule does not have tribal                  ADDRESSES section to read:                            William L. Wehrum,
                                                implications as specified by Executive                  ‘‘ADDRESSES: Comments. Submit your                    Assistant Administrator, Office of Air and
                                                Order 13175 (65 FR 67249, November 9,                   comments, identified by Docket ID No.                 Radiation.
                                                2000), nor will it impose substantial                   EPA–HQ–OAR–2018–0696 at https://                      [FR Doc. 2018–24581 Filed 11–8–18; 8:45 am]
                                                direct costs on tribal governments or                   www.regulations.gov. Follow the online                BILLING CODE 6560–50–P
                                                preempt tribal law.                                     instructions for submitting comments.
                                                                                                        Once submitted, comments cannot be
                                                List of Subjects in 40 CFR Part 52
                                                                                                        edited or removed from Regulations.gov.               DEPARTMENT OF HEALTH AND
                                                  Environmental protection, Air                         See SUPPLEMENTARY INFORMATION for                     HUMAN SERVICES
                                                pollution control, Incorporation by                     detail about how the EPA treats
                                                Reference, Intergovernmental relations,                 submitted comments. Regulations.gov is                45 CFR Parts 155 and 156
                                                Reporting and recordkeeping                             our preferred method of receiving
                                                requirements, Sulfur oxides.                            comments. However, the following                      [CMS–9922–P]
                                                   Authority: 42 U.S.C. 7401 et seq.                    other submission methods are also                     RIN 0938–AT53
                                                                                                        accepted:
                                                  Dated: November 1, 2018.                                 • Email: a-and-r-docket@epa.gov.                   Patient Protection and Affordable Care
                                                Onis ‘‘Trey’’ Glenn, III,                               Include Docket ID No. EPA–HQ–OAR–                     Act; Exchange Program Integrity
                                                Regional Administrator, Region 4.                       2018–0696 in the subject line of the
                                                                                                                                                              AGENCY:  Centers for Medicare &
                                                [FR Doc. 2018–24582 Filed 11–8–18; 8:45 am]             message.
                                                                                                           • Fax: (202) 566–9744. Attention                   Medicaid Services (CMS), HHS.
                                                BILLING CODE 6560–50–P
                                                                                                        Docket ID No. EPA–HQ–OAR–2018–                        ACTION: Proposed rule.
                                                                                                        0696.                                                 SUMMARY:    This proposed rule would
                                                ENVIRONMENTAL PROTECTION                                   • Mail: To ship or send mail via the
                                                                                                                                                              revise standards relating to oversight of
                                                AGENCY                                                  United States Postal Service, use the
                                                                                                                                                              Exchanges established by states,
                                                                                                        following address: U.S. Environmental
                                                40 CFR Part 60                                                                                                periodic data matching frequency and
                                                                                                        Protection Agency, EPA Docket Center,
                                                                                                                                                              authority, and the length of a
                                                                                                        Docket ID No. EPA–HQ–OAR–2018–
                                                [EPA–HQ–OAR–2018–0696; FRL–9986–28–                                                                           consumer’s authorization for the
                                                                                                        0696, Mail Code 28221T, 1200
                                                OAR]                                                                                                          Exchange to obtain updated tax
                                                                                                        Pennsylvania Avenue NW, Washington,
                                                                                                                                                              information. This proposed rule would
                                                RIN 2060–AU33                                           DC 20460.
                                                                                                           • Hand/Courier Delivery: Use the                   also propose new requirements for
                                                Adopting Subpart Ba Requirements in                     following Docket Center address if you                certain issuers related to the collection
                                                Emission Guidelines for Municipal                       are using express mail, commercial                    of a separate payment for the premium
                                                Solid Waste Landfills; Correction                       delivery, hand delivery, or courier: EPA              portion attributable to coverage for
                                                                                                        Docket Center, EPA WJC West Building,                 certain abortion services. Many of these
                                                AGENCY:  Environmental Protection                       Room 3334, 1301 Constitution Avenue                   proposed changes would help
                                                Agency (EPA).                                           NW, Washington, DC 20004. Delivery                    strengthen Exchange program integrity.
                                                ACTION: Proposed rule; correction.                      verification signatures will be available             DATES: Comments: To be assured
                                                                                                        only during regular business hours.’’                 consideration, comments must be
                                                SUMMARY:  This document corrects the                       In proposed rule FR 2018–23700, in                 received at one of the addresses
                                                preamble to a proposed rule published                   the issue of Tuesday, October 30, 2018,               provided below, no later than 5 p.m. on
                                                in the Federal Register on October 30,                  on page 54528, make the following                     January 8, 2019.
                                                2018, regarding the implementing                        correction to the docket numbers listed               ADDRESSES: In commenting, please refer
                                                regulations that govern the Emission                    in the SUPPLEMENTARY INFORMATION                      to file code CMS–9922–P. Because of
                                                Guidelines for Municipal Solid Waste                    section. In the second paragraph of the               staff and resource limitations, we cannot
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                                                (MSW) Landfills. The listed docket                      section, in the first column, revise the              accept comments by facsimile (FAX)
                                                number in that preamble was incorrect.                  docket number in the first sentence to                transmission.
                                                Any comments received prior to this                     say, ‘‘Docket. The EPA has established                   Comments, including mass comment
                                                correction have been redirected to the                  a docket for this rulemaking under                    submissions, must be submitted in one
                                                correct docket.                                         Docket ID No. EPA–HQ–OAR–2018–                        of the following three ways (please
                                                DATES: Comments. Comments must be                       0696.’’                                               choose only one of the ways listed):
                                                received on or before December 14,                         In the third paragraph of the section,                1. Electronically. You may submit
                                                2018.                                                   in the first column, revise the docket                electronic comments on this regulation


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Document Created: 2018-11-09 03:33:28
Document Modified: 2018-11-09 03:33:28
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments must be received on or before December 10, 2018.
ContactRichard Wong, Air Regulatory Management Section, Air Planning and Implementation Branch, Air, Pesticides and Toxics Management Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW, Atlanta, Georgia 30303-8960. Mr. Wong can be reached via telephone at (404) 562-8726 or via electronic mail at [email protected]
FR Citation83 FR 56002 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Reporting and Recordkeeping Requirements and Sulfur Oxides

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