83_FR_8863 83 FR 8822 - Revisions to California State Implementation Plan; Bay Area Air Quality Management District; Stationary Sources; New Source Review

83 FR 8822 - Revisions to California State Implementation Plan; Bay Area Air Quality Management District; Stationary Sources; New Source Review

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 41 (March 1, 2018)

Page Range8822-8827
FR Document2018-04112

The Environmental Protection Agency (EPA) is proposing to approve revisions to the Bay Area Air Quality Management District (BAAQMD or District) portion of the California State Implementation Plan (SIP). These revisions concern permit program rules governing the issuance of permits for stationary sources, including review and permitting of major sources and major modifications under parts C and D of title I of the Clean Air Act (CAA). The revisions correct deficiencies in BAAQMD Regulation 2, Rules 1 and 2, and Regulation 2, Rule 4, previously identified by the EPA in final rules dated August 1, 2016, and December 4, 2017, respectively. We are proposing to approve revisions that correct the identified deficiencies.

Federal Register, Volume 83 Issue 41 (Thursday, March 1, 2018)
[Federal Register Volume 83, Number 41 (Thursday, March 1, 2018)]
[Proposed Rules]
[Pages 8822-8827]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04112]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2018-0080; FRL-9974-95--Region 9]


Revisions to California State Implementation Plan; Bay Area Air 
Quality Management District; Stationary Sources; New Source Review

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve revisions to the Bay Area Air Quality Management District 
(BAAQMD or District) portion of the California State Implementation 
Plan (SIP). These revisions concern permit program rules governing the 
issuance of permits for stationary sources, including review and 
permitting of major sources and major modifications under parts C and D 
of title I of the Clean Air Act (CAA). The revisions correct 
deficiencies in BAAQMD Regulation 2, Rules 1 and 2, and Regulation 2, 
Rule 4, previously identified by the EPA in final rules dated August 1, 
2016, and December 4, 2017, respectively. We are proposing to approve 
revisions that correct the identified deficiencies.

DATES: Any comments must arrive by April 2, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2018-0080 at http://www.regulations.gov, or via email to 
R9AirPermits@epa.gov. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be removed or edited from Regulations.gov. For either 
manner of submission, the EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. The EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region 9, (415) 
972-3534, yannayon.laura@epa.gov.

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

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rule revisions?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    1. Regulation 2, Rules 1 and 2
    2. Regulation 2, Rule 4
    3. Requirements of 40 CFR 51.165(a)(13)
    4. Sections 110(a)(2) and 110(l) of the Act
    5. Section 193 of the Act
III. Proposed Action and Public Comment
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

Definitions

    For the purpose of this document, we are giving meaning to certain 
words or initials as follows:
    (i) The word or initials Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.

[[Page 8823]]

    (ii) The word or initials APCO mean or refer to the Air Pollution 
Control Officer.
    (iii) The word or initials BAAQMD or District mean or refer to the 
Bay Area Air Quality Management District.
    (iv) The initials BACT mean or refer to Best Available Control 
Technology.
    (v) The words Bay Area mean or refer to the geographic area 
regulated by the Bay Area Air Quality Management District.
    (vi) The initials CARB mean or refer to the California Air 
Resources Board.
    (vii) The initials CFR mean or refer to Code of Federal 
Regulations.
    (viii) The initials or words EPA, we, us or our mean or refer to 
the United States Environmental Protection Agency.
    (ix) The initials ERC mean or refer to Emission Reduction Credit.
    (x) The initials FR mean or refer to Federal Register.
    (xi) The initials GHG mean or refer to greenhouse gases.
    (xii) The initials NAAQS mean or refer to National Ambient Air 
Quality Standards.
    (xiii) The initials NOX mean or refer to oxides of nitrogen.
    (xiv) The initials NSR mean or refer to New Source Review.
    (xv) The initials PM2.5 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 2.5 micrometers (fine 
particulate matter).
    (xvi) The initials POC mean or refer to precursor organic compound.
    (xvii) The initials PSD mean or refer to Prevention of Significant 
Deterioration.
    (xviii) The initials PTE mean or refer to potential to emit
    (xix) The initials SIP mean or refer to State Implementation Plan.
    (xx) The initials SO2 mean or refer to sulfur dioxide.
    (xxi) The initials VOC mean or refer to volatile organic compound.

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal with the dates 
they were adopted by BAAQMD and submitted by the CARB, which is the 
governor's designee for California SIP submittals. Regulation 2, Rule 1 
contains general requirements that apply to all District air quality 
permitting programs. Regulation 2, Rule 2 contains the District's New 
Source Review (NSR) permit programs for both attainment and 
nonattainment pollutants. Regulation 2, Rule 4 contains requirements 
for banking emission reduction credits (ERCs).

                                            Table 1--Submitted Rules
----------------------------------------------------------------------------------------------------------------
             Regulation & Rule No.                         Rule title                 Amended        Submitted
----------------------------------------------------------------------------------------------------------------
Regulation 2, Rule 1 (Rule 2-1)...............  Permits, General Requirements...       12/6/2017        12/14/17
Regulation 2, Rule 2 (Rule 2-2)...............  Permits, New Source Review......       12/6/2017        12/14/17
Regulation 2, Rule 4 (Rule 2-4)...............  Permits, Emissions Banking......       12/6/2017        12/14/17
----------------------------------------------------------------------------------------------------------------

    On February 14, 2018, the EPA determined that the submittal of 
Regulation 2, Rules 1, 2 and 4 met the completeness criteria in 40 CFR 
part 51, appendix V, which must be met before formal EPA review.

B. Are there other versions of these rules?

    The existing SIP-approved NSR program for new or modified 
stationary sources in the Bay Area consists of the rules identified 
below in Table 2. The EPA's approval of the rules identified above in 
Table 1 would have the effect of entirely superseding our prior 
approval of these rules in the current SIP-approved program.

                                           Table 2--Existing SIP Rules
----------------------------------------------------------------------------------------------------------------
             Regulation & Rule No.                         Rule title              Approval date    FR citation
----------------------------------------------------------------------------------------------------------------
Regulation 2, Rule 1 (Rule 2-1)...............  Permits, General Requirements...        8/1/2016     81 FR 50339
Regulation 2, Rule 2 (Rule 2-2)...............  Permits, New Source Review......        8/1/2016     81 FR 50339
Regulation 2, Rule 4 (Rule 2-4)...............  Permits, Emissions Banking......       12/4/2017     82 FR 57133
----------------------------------------------------------------------------------------------------------------

C. What is the purpose of the submitted rule revisions?

    This SIP submittal is intended to correct deficiencies previously 
identified by the EPA in our August 1, 2016, limited approval and 
limited disapproval ction for Rules 2-1 and 2-2 (81 FR 50339), and our 
December 4, 2017, conditional approval action for Rule 2-4 (82 FR 
57133).

II. The EPA's Evaluation and Action

A. How is the EPA evaluating the rules?

    The evaluation criteria for the submitted rules includes compliance 
with the CAA's requirements for SIPs in CAA sections 110(a)(2), 110(l), 
and 193. In addition, the EPA evaluated the submitted rules for 
consistency with the regulatory provisions of 40 CFR part 51, subpart I 
(Review of New Sources and Modifications) (i.e., 40 CFR 51.160-51.166) 
and 40 CFR 51.307.

B. Do the rules meet the evaluation criteria?

    In our previous August 1, 2016, and December 4, 2017, actions we 
evaluated prior submissions of the submitted rules in accordance with 
the CAA and regulatory requirements listed in Section II.A of this 
document. In those actions, we determined that for the most part the 
submitted rules satisfied the applicable requirements for NSR permit 
programs. However, in each action we identified certain deficiencies 
that prevented full approval. For both of the previous actions, we list 
the identified deficiencies and evaluate whether the submitted rule 
revisions correct the deficiency. We also evaluate any additional rule 
revisions and whether the submittal complies with the requirements of 
sections 110(a)(2), 110(l) and 193 of the CAA.
1. Regulation 2, Rules 1 and 2
    Our August 1, 2016 action identified the following eleven 
deficiencies in Rules 2-1 and 2-2.
    First, the definitions of ``agricultural source'' in Section 2-1-
239 and ``large confined animal facility'' used in Section 2-1-424 rely 
on other definitions and provisions in District rules that are not SIP 
approved.
    Second, Section 2-1-234, subparagraph 2.2, is deficient because it

[[Page 8824]]

does not satisfy the PSD provisions at 40 CFR 51.166(a)(7) and 
51.166(r)(6) & (7), which require PSD programs to contain specific 
applicability procedures and recordkeeping provisions.
    Third, the same deficiency discussed above for the PSD provisions 
applies to the nonattainment NSR provisions. Section 2-1-234, 
subparagraph 2.1, does not satisfy the requirements of 40 CFR 
51.165(a)(2) and 51.165(a)(6) & (7), which require nonattainment NSR 
programs to contain specific applicability procedures and recordkeeping 
provisions.
    Fourth, the definition of the term ``PSD pollutant'' as defined in 
Section 2-2-223, which is used in place of the federal definition for 
the term ``regulated NSR pollutant,'' is deficient because it 
explicitly excludes nonattainment pollutants.
    Fifth, Section 2-2-305 does not require written approval of the 
Administrator prior to using any modified or substituted air quality 
model as provided in subsection 3.2.2 of 40 CFR part 51, appendix W.
    Sixth, Section 2-2-611 does not include the requirement regarding 
``any other stationary source category which as of August 7, 1980, is 
being regulated under section 111 or 112 of the Act'' in the list of 
source categories that must include fugitive emissions to determine 
whether a source is a major facility.
    Seventh, Section 2-2-401.4 only requires a visibility analysis for 
sources that are located within 100 km of a Class I area, rather than 
for any source that ``may have an impact on visibility'' in any 
mandatory Class I Federal Area, as required by 40 CFR 51.307(b)(2).
    Eighth, Section 2-2-411 pertaining to Offset Refunds does not 
contain any timeframe for obtaining an offset refund.
    Ninth, the Offset Program Equivalence demonstration required by 
Section 2-2-412 does not provide a remedy if the District fails to make 
the required demonstration.
    Tenth, Subsection 2-2-605.2 allows existing ``fully-offset'' 
sources to generate ERCs based on the difference between the post-
modification PTE and the pre-modification PTE. Emission reductions 
intended to be used as offsets for new major sources or major 
modifications are only creditable if they are reductions of actual 
emissions, not reductions in the PTE of a source.
    Eleventh, Subsection 2-2-606.2, as it applies to major 
modifications, does not require ``fully-offset'' sources to calculate 
the emission increases from a proposed major modification based on the 
difference between the post-modification PTE and the pre-modification 
actual emissions as required by 40 CFR 51.165(a)(3)(ii)(J).
    To address the first deficiency, the definition of ``agricultural 
source'' in Section 2-1-239 and the reference to ``large confined 
animal facility'' used in Section 2-1-424 have been revised to remove 
references to ``Regulation 2, Rule 10,'' which is not SIP approved. The 
District made additional edits to both of these provisions, as well as 
Subsection 2-1-113.1.2, to provide additional information due to the 
removal of the references to Regulation 2, Rule 10. These revisions 
cure this deficiency because the rules no longer reference rules which 
are not SIP approved.
    To address the second deficiency, Section 2-1-234 has been revised 
by adding two new subparagraphs (2.3 and 2.4) to include the specific 
applicability procedures and recordkeeping provisions required by 40 
CFR 51.166(a)(7) and 51.166(r)(6) & (7). These two new subparagraphs 
are acceptable to cure this deficiency.
    To address the third deficiency, Section 2-1-234 has been revised 
by adding two new subparagraphs (2.3 and 2.4) to include the specific 
applicability procedures and recordkeeping provisions required by 40 
CFR 51.165(a)(2) and 51.165(a)(6) & (7). These two new subparagraphs 
are acceptable to cure this deficiency.
    To address the fourth deficiency, Section 2-2-224 has been revised 
to reference the term ``Regulated NSR Pollutant'' rather than ``PSD 
pollutant.'' This revision cures the deficiency by ensuring that a 
Major PSD Facility determination (as specified in Subsection 224.1) is 
based on emissions of all regulated NSR pollutants, including any 
nonattainment pollutant.
    To address the fifth deficiency, Section 2-2-305.3--Air Quality 
Models, has been revised to require written EPA approval prior to using 
any modified or substituted air quality model. This revision cures this 
deficiency.
    To address the sixth deficiency, Section 2-2-611 has been revised 
to add the following language: ``or is in any other stationary source 
category that was being regulated under section 111 or 112 of the Clean 
Air Act as of August 7, 1980.'' This revision cures this deficiency by 
adding the missing required language.
    To address the seventh deficiency, Section 2-2-401.4 has been 
revised to indicate an analysis of potential impacts to air quality 
related values is required for a project which ``may have an impact on 
air quality related values (including visibility) within any Class I 
area(s),'' rather than only projects located within 100 km of a Class I 
area. In addition, language has been added to this section to clarify 
how such a determination is to be made by referencing the guidelines 
adopted by the Federal Land Managers Air Quality Related Values Work 
Group. These revisions cure this deficiency.
    To address the eighth deficiency, Section 2-2-411.1 has been 
revised to specify that if excess offsets are provided, an offset 
refund request must be made within 2 years of the issuance of the 
authority to construct or within 6 months of issuance of the permit to 
operate. Section 2-2-411.2 has been revised to specify that if a source 
is never constructed or operated, and the authority to construct for 
the source has expired or been surrendered, an offset refund request 
must be made within 2 years of the issuance or renewal of the authority 
to construct. These revisions cure this deficiency.
    To address the ninth identified deficiency, Section 2-2-415--
Additional Offset Requirements Where District Has Not Demonstrated 
NOX, POC or PM2.5 Offset Program Equivalence, has 
been added to specify that if the demonstration required by Section 2-
2-412 is not made by March 1 of each year (or other EPA-approved date), 
the Air Pollution Control Officer (APCO) shall require additional 
offsets for any subsequent Authority to Construct and/or Permit to 
Operate for a Federal Major NSR Source sufficient to make up for (i) 
any Federal Offsets Baseline Shortfall calculated pursuant to Section 
2-2-229 and (ii) any Federal Surplus-at-Time-of-Use Shortfall 
calculated pursuant to Section 2-2-230. The new provision also states 
that this requirement shall continue until the District has made the 
required equivalence demonstration.
    These new provisions cure this deficiency because they ensure an 
applicant will provide the full amount of federal offsets required for 
a new project if the District fails to make the required annual 
demonstration. The EPA recognizes that any shortfall for a year in 
which the District does not provide an adequate demonstration will not 
be immediately corrected, but it will be corrected prior to continued 
usage of the offset equivalence demonstration. The EPA finds this 
acceptable.
    To address the tenth identified deficiency, Subsection 2-2-605.1 
has been revised to clarify the requirements of an eligible emission 
reduction credit and Subsection 2-2-605.2 has been revised to eliminate 
a separate calculation methodology for ``fully-offset'' sources. The 
provision has also been revised to specify that the amount

[[Page 8825]]

of emission reduction shall be calculated as the difference between: 
(i) The source's adjusted baseline emissions before the change 
calculated pursuant to Section 2-2-603; and (ii) the source's potential 
to emit after the change. This revision cures this deficiency because 
it ensures that the amount of ERC is based on actual emission 
reductions.
    To address the eleventh identified deficiency, the calculation 
methodology specified in Subsection 2-2-606.2 was not revised. Instead, 
Section 2-2-412--Demonstration of NOX, POC and 
PM2.5 Offset Program Equivalence, was revised to require the 
District to provide an annual demonstration that the District's NSR 
program as a whole has obtained at least as many NOX, POC 
and PM2.5 offsets as would have been required pursuant to 
the provisions of 40 CFR 51.165 for federal major sources during the 
previous calendar year. We note that although section 2-2-412 was 
modified to include PM2.5, the revisions to Section 2-2-412 
do not contain any provisions for demonstrating equivalency with 
SO2 offset requirements. In section II.B.3 of this preamble 
we discuss our reasoning for proposing approval of Rule 2-2 without 
requiring an equivalency demonstration for SO2 offsets.
    In addition, new definitions for the terms Federal Major NSR 
Source, Federal Offsets Baseline Shortfall, Federal Surplus-at-Time of 
Use Shortfall and Equivalence Credit were added to define these terms 
as used in Section 2-2-412. We find these new definitions acceptable.
    In the current SIP, the annual Offset Program Equivalence 
Demonstration is only required to account for the difference between 
the quantity of offsets obtained by the District using ERCs surplus 
adjusted solely at the time of generation and the subset of those 
offsets that continue to be surplus at the time of use. The new 
provisions require the District to also calculate the difference 
between the amount of offsets provided pursuant to the provisions of 
Subsection 2-2-606.2, and the amount required pursuant to the 
provisions of 40 CFR 51.165, when applied to new and modified major 
sources. We have reviewed the language added to Section 2-2-412 and new 
Section 2-2-415, and have determined that the provisions of Rule 2-2 
will ensure that in the aggregate an equivalent number of ERCs will be 
provided as would otherwise be required by a NSR program without an 
equivalence mechanism that met the offset quantification provisions 
specified in 40 CFR 51.165. We find that these revised and new 
provisions are acceptable to cure this deficiency.
    In addition to the revisions made to address the identified 
deficiencies discussed above, the District made several additional 
minor rule revisions. In Rule 2-1, the definitions for the terms 
``Facility'' and ``New Source'' were revised to provide additional 
clarification regarding portable equipment. The provisions of 
Subsection 2-1-234.2 were revised to clarify which specific provisions 
of 40 CFR 51.165 (for nonattainment pollutants) and 40 CFR 52.21 (for 
other Federal NSR pollutants) must be used to determine if an emissions 
increase from a project will result in a major modification as defined 
in 40 CFR 51.165 or 52.21, as applicable. These revisions provide 
important clarifications to ensure the provisions are enforceable, as 
required by CAA section 110(a)(2)(C), and do not revise any of the 
requirements for determining if a project will result in a major 
modification. Therefore we find the revisions to Subsection 2-1-234.2 
acceptable. Section 2-1-413--Permits for Operation of Equipment at 
Multiple Locations Within the District, was revised by adding new 
Subsection 413.7. This new provision ensures that equipment permitted 
under this provision do not effectively become ``stationary source 
equipment'' by residing at a single stationary source for more than 12 
months. We find these revisions acceptable. Revisions were also made to 
Section 2-1-424--Loss of Exemption or Exclusion to remove the reference 
to non-SIP approved Rule 2-10, and provide additional clarification 
regarding the applicability of this provision. These revisions do not 
change the requirements of this section, therefore we find the 
revisions acceptable.
    In Rule 2-2, the definitions for the terms ``Adjustment to Emission 
Reductions for Federal Purposes'' and ``Fully Offset Source'' were 
deleted because the rule no longer uses these terms. In Section 2-2-
214, the definition of ``Greenhouse Gases'' was revised to remove the 
requirement that such gases be measured on a mass basis consistent with 
the Supreme Court's decision in Utility Air Regulatory Group v. EPA, 
and the subsequent Judgment in the United States Court of Appeals for 
the District of Columbia Circuit in Coalition for Responsible 
Regulation, Inc. v. EPA regarding the treatment of GHGs in the PSD 
program.\1\
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    \1\ In 2014 the U.S. Supreme Court issued a ruling in Utility 
Air Regulatory Group v. EPA, 134 S.Ct. 2427 (2014) that interpreted 
several relevant provisions of the federal Clean Air Act regarding 
the Act's PSD permit program requirements. On April 10, 2015, the 
D.C. Circuit Court of Appeals effectuated the Supreme Court's 
judgment by vacating portions of the EPA's PSD regulations 
addressing GHGs. See Coalition for Responsible Regulation, Inc. v. 
EPA, 606 Fed. Appx. 6 (Apr. 10, 2015).
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2. Regulation 2, Rule 4
    Our December 4, 2017 action identified the following three 
deficiencies in Rule 2-4.
    First, Rule 2-4 is deficient because it defines the term ERCs as 
emission reductions ``that are in excess of the reductions required by 
applicable regulatory requirements, and that are real, permanent, 
quantifiable, and enforceable,'' but does not contain any enforceable 
provisions requiring the APCO to determine that the emission reductions 
under review meet the offset integrity criteria prior to issuing an ERC 
Certificate.
    Second, Rule 2-4 is deficient because it incorporates the deficient 
emission reduction calculation procedures found in Rule 2-2 subsection 
605.2. This deficiency in Rule 2-2-605.2 is discussed in Section II.B.1 
of the present document, and is identified as deficiency number ten.
    Third, Rule 2-4 is deficient because Section 2-4-302.3 allows ERC 
Certificates to be issued that do not adequately ensure the permanency 
of an emission reduction due to a facility closure.
    To address the first deficiency, Section 2-4-301 has been revised 
by adding language clarifying that emission reductions may be banked 
only if the APCO determines (i) that the reductions satisfy all of the 
criteria necessary to constitute Emission Reduction Credits as defined 
in Section 2-2-211, including but not limited to the requirements that 
the reductions are real, permanent, quantifiable, and enforceable, and 
are calculated in accordance with Section 2-2-605; and (ii) that 
banking the reductions is not prohibited by Section 2-4-303. These 
revisions cure this deficiency because they ensure that emission 
reductions may only be banked after the APCO determines the offset 
integrity criteria have been met.
    To address the second deficiency, Section 2-2-605.2 has been 
revised to eliminate a separate calculation methodology for ``fully-
offset'' sources. This revision is discussed in more detail in section 
II.B.1 of the present document in the discussion of deficiency number 
ten. Because the second identified deficiency in Rule 2-4 stems from 
the incorporation of a deficiency in Section 2-2-605.2, and we found in 
Section

[[Page 8826]]

II.B.1 above that the District's amendments to Rule 2-2 cure this 
deficiency, we also find that the corresponding deficiency cited in 
Rule 2-4 pertaining to how the quantity of an emission reduction is 
calculated has been cured.
    To address the third identified deficiency, Section 2-4-302.3 has 
been removed from Rule 2-4. This revision cures this deficiency by 
removing the deficient provision.
    In addition to the revisions to Rule 2-4 discussed above, the 
District deleted Section 301.7, which provided an example of a bankable 
emission reduction. Because this was only an example, this deletion has 
no effect on the approvability of Rule 2-4.
    Our December 4, 2017, conditional approval action (82 FR 57133) was 
predicated on the state's commitment to submit SIP revisions to cure 
the three identified deficiencies. Because we are proposing to find 
that the present submission cures these deficiencies, we also propose 
to find that the state has fulfilled its commitment. If finalized as 
proposed, the EPA would fully approve the submitted version of Rule 2-4 
into the SIP, curing the previously identified deficiencies, and remove 
the conditional approval contained in 40 CFR 52.248(c).
3. Requirements of 40 CFR 51.165(a)(13)
    For any area designated nonattainment for PM2.5, 40 CFR 
51.165(a)(13) requires a nonattainment NSR program to require the same 
control requirements applicable to major stationary sources and major 
modifications of PM2.5 to all PM2.5 precursors. A 
permitting authority may exclude a specific precursor from this 
requirement if they submit--and the EPA approves--a precursor 
demonstration that meets the conditions for a nonattainment NSR 
precursor demonstration as set forth in 40 CFR 51.1006(a)(3). In our 
August 1, 2016 action we found that Rule 2-2 satisfied the requirements 
of CAA section 189(e), which are now enacted through 40 CFR 
51.165(a)(13), for SO2, NOX, and VOC, and we 
approved a demonstration for ammonia allowing it to be excluded from 
this requirement.\2\ A nonattainment NSR precursor demonstration must 
``evaluate the sensitivity of PM2.5 levels in the 
nonattainment area to an increase in emissions of a particular 
precursor.'' If the changes ``are not significant, based on the facts 
and circumstances of the area, the state may use that information to 
identify new major stationary sources and major modifications of [that] 
precursor that will not be considered to contribute significantly to 
PM2.5 levels that exceed the standard in the nonattainment 
area.'' As part of the current SIP submittal, the District has provided 
an analysis in accordance with the requirements of 40 CFR 
51.1006(a)(3).\3\
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    \2\ See 80 FR 52236, 52242-3 (August 28, 2015), 81 FR 50339, 
50341.
    \3\ Final Report: Demonstration of SO2 Precursor Contributions 
to PM2.5 in the San Francisco Bay Area, Bay Area Air Quality 
Management District, with technical assistance from Ramboll Environ, 
November 30, 2017.
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    The analysis used the Community Multiscale Air Quality (CMAQ) Model 
and California Puff Model (CALPUFF) to model the impacts of 7 new 
greenfield sources emitting 370 tpy of SO2 along with a 20% 
increase of current SO2 emissions from existing sources to 
determine if such increases would contribute significantly to 
PM2.5 levels that exceed the standard in the area. The 
District provided reasoned explanations for choosing the number, size 
and location of the new sources to be modeled. For the CMAQ and CALPUFF 
modeling, the maximum contribution was just under 0.6 [micro]g/m\3\ and 
0.68 [micro]g/m\3\, respectively. Both of these contribution estimates 
are well under the recommended insignificance threshold of 1.3 
[micro]g/m\3\ contained in EPA's draft PM2.5 Precursor Demonstration 
Guidance.\4\
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    \4\ Draft PM2.5 Precursor Demonstration Guidance, EPA-454/P-16-
001, U.S. EPA OAQPS, November 17, 2016, available at https://www.epa.gov/pm-pollution/draft-pm25-precursor-demonstration-guidance.
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    Based on the information provided in the District's submitted 
analysis, EPA is proposing to approve the District's demonstration that 
SO2 emissions from new and modified major SO2 
sources will not contribute significantly to 24-hour PM2.5 
concentrations exceeding the standard in the area. A more detailed 
summary of the District's demonstration and the EPA's analysis can be 
found in the docket for this action.
    Based on our approval of the District's non-significance 
demonstration for SO2, we find it acceptable that Section 2-
2-412--Demonstration of NOX, POC and PM2.5 Offset 
Program Equivalence, does not require an annual demonstration that an 
equivalent number of SO2 offsets are required under Rule 2-
2, as would otherwise be required under a fully compliant nonattainment 
NSR program. While Section 2-2-303 requires offsets for SO2 
emissions (as required by state law), the District will not be required 
to include any offsets provided for SO2 major sources in the 
annual equivalency demonstration required by Section 2-2-412--
Demonstration of NOX, POC and PM2.5 Offset 
Program Equivalence.
4. Sections 110(a)(2) and 110(l) of the Act
    We are proposing to find that Regulation 2, Rules 1, 2 and 4 
satisfy the requirements of sections 110(a)(2) and 110(l) of the CAA. 
These sections state that each SIP revision submitted by a State shall 
be adopted by such State after reasonable notice and public hearing. 
Section 110(l) also states that the Administrator shall not approve a 
SIP revision if the revision would interfere with any applicable 
requirement concerning attainment and reasonable further progress, or 
any other CAA applicable requirement.
    With respect to the procedural requirements of CAA sections 
110(a)(2) and 110(l), based on our review of the public process 
documentation included in the December 14, 2017 SIP submittal package, 
we find that BAAQMD has provided sufficient evidence of public notice 
and opportunity for comment and public hearings prior to adoption and 
submittal of these rules to the EPA.
    With respect to the substantive requirements of section 110(l), we 
have determined that our approval of the BAAQMD NSR SIP submittal 
represents a strengthening of BAAQMD's NSR program as compared to the 
District's current SIP-approved NSR program that was last approved on 
August 1, 2016, and that the revision would not interfere with any 
applicable CAA requirement. Therefore we are proposing full approval of 
the BAAQMD NSR SIP submittal under section 110(l) of the Act.
5. Section 193 of the Act
    Section 193 of the Act includes a savings clause which provides, in 
pertinent part: ``No control 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 after November 15, 1990, in any manner 
unless the modification insures equivalent or greater emission 
reductions of such air pollutant.''
    We have reviewed the provisions included in BAAQMD's NSR SIP 
submittal and find that they would ensure equivalent or greater 
emission reductions compared to the current SIP-approved NSR program. 
The BACT and offset requirements of the submitted rules, which are the 
primary control requirements of a NSR program, are equivalent to or 
more stringent than those contained in the existing SIP-approved NSR 
rules. Therefore, we can

[[Page 8827]]

approve the submitted NSR program under section 193 of the Act.

III. Proposed Action and Public Comment

    As authorized in section 110(k)(3) of the Act, the EPA is proposing 
to fully approve the submitted rules because we believe they fulfill 
all relevant requirements. In support of this proposed action, we have 
concluded that our approval of the submitted rules would comply with 
sections 110(a)(2), 110(l) and 193 of the Act because the amended rules 
would not interfere with any applicable requirement concerning 
attainment of the NAAQS in the Bay Area, and do not relax control 
technology and offset requirements. If we finalize this action as 
proposed, our action would be codified through revisions to 40 CFR 
52.220 (Identification of plan--in part), and removal of the 
conditional approval contained in 40 CFR 52.248(c).
    We will accept comments from the public on the proposed approval of 
Rules 2-1, 2-2, and 2-4 for the next 30 days.

IV. Incorporation by Reference

    In this rule the EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference the BAAQMD rules listed in Table 1 of this preamble. The EPA 
has made, and will continue to make, these materials available 
electronically through www.regulations.gov and in hard copy at the EPA 
Region IX Office (please contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section of this preamble for more 
information).

V. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, the EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed action merely proposes to approve 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 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide the EPA with the discretionary authority 
to address disproportionate human health or environmental effects with 
practical, appropriate, and legally permissible methods under Executive 
Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where the EPA or an Indian tribe 
has demonstrated that a tribe has jurisdiction. In those areas of 
Indian country, the rule does not have tribal implications and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law as specified by Executive Order 13175 (65 FR 67249, November 9, 
2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements.

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

    Dated: February 20, 2018.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2018-04112 Filed 2-28-18; 8:45 am]
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                                               8822                    Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules

                                               VIII. Statutory and Executive Order                     ozone NAAQS, 1997, 2006 and 2012                      ADDRESSES:   Submit your comments,
                                               Reviews                                                 PM2.5 NAAQS, 2006 PM10 NAAQS,                         identified by Docket ID No. EPA–R09–
                                                  Under the CAA, the Administrator is                  2010 NO2 NAAQS, 2010 SO2 NAAQS,                       OAR–2018–0080 at http://
                                               required to approve a SIP submission                    2011 CO NAAQS, and 2008 lead                          www.regulations.gov, or via email to
                                               that complies with the provisions of the                NAAQS do not have tribal implications                 R9AirPermits@epa.gov. For comments
                                               CAA and applicable Federal regulations.                 as specified by Executive Order 13175                 submitted at Regulations.gov, follow the
                                               42 U.S.C. 7410(k); 40 CFR 52.02(a).                     (65 FR 67249, November 9, 2000),                      online instructions for submitting
                                               Thus, in reviewing SIP submissions,                     because the SIP is not approved to apply              comments. Once submitted, comments
                                               EPA’s role is to approve state choices,                 in Indian country located in the state,               cannot be removed or edited from
                                               provided that they meet the criteria of                 and EPA notes that it will not impose                 Regulations.gov. For either manner of
                                               the CAA. Accordingly, this action                       substantial direct costs on tribal                    submission, the EPA may publish any
                                               merely proposes to approve state law as                 governments or preempt tribal law.                    comment received to its public docket.
                                               meeting Federal requirements and does                                                                         Do not submit electronically any
                                                                                                       List of Subjects in 40 CFR Part 52
                                               not impose additional requirements                                                                            information you consider to be
                                                                                                         Environmental protection, Air                       Confidential Business Information (CBI)
                                               beyond those imposed by state law. For
                                                                                                       pollution control, Incorporation by                   or other information whose disclosure is
                                               that reason, this proposed action:
                                                                                                       reference, Nitrogen dioxide,                          restricted by statute. Multimedia
                                                  • Is not a ‘‘significant regulatory
                                                                                                       Intergovernmental relations, Lead,                    submissions (audio, video, etc.) must be
                                               action’’ subject to review by the Office
                                                                                                       Ozone, Particulate matter, Reporting                  accompanied by a written comment.
                                               of Management and Budget under
                                                                                                       and recordkeeping requirements, Sulfur                The written comment is considered the
                                               Executive Order 12866 (58 FR 51735,
                                                                                                       oxides, Volatile organic compounds.                   official comment and should include
                                               October 4, 1993) and 13563 (76 FR 3821,
                                               January 21, 2011);                                        Authority: 42 U.S.C. 7401 et seq.                   discussion of all points you wish to
                                                  • is not an Executive Order 13771 (82                                                                      make. The EPA will generally not
                                                                                                         Dated: February 14, 2018.
                                               FR 9339, February 2, 2017) regulatory                                                                         consider comments or comment
                                                                                                       Peter D. Lopez,
                                               action because SIP approvals are                                                                              contents located outside of the primary
                                                                                                       Regional Administrator, Region 2.                     submission (i.e. on the web, cloud, or
                                               exempted under Executive Order 12866                    [FR Doc. 2018–04191 Filed 2–28–18; 8:45 am]
                                                  • does not impose an information                                                                           other file sharing system). For
                                               collection burden under the provisions
                                                                                                       BILLING CODE 6560–50–P                                additional submission methods, please
                                               of the Paperwork Reduction Act (44                                                                            contact the person identified in the FOR
                                               U.S.C. 3501 et seq.);                                                                                         FURTHER INFORMATION CONTACT section.
                                                                                                       ENVIRONMENTAL PROTECTION                              For the full EPA public comment policy,
                                                  • is certified as not having a                       AGENCY
                                               significant economic impact on a                                                                              information about CBI or multimedia
                                               substantial number of small entities                                                                          submissions, and general guidance on
                                                                                                       40 CFR Part 52
                                               under the Regulatory Flexibility Act (5                                                                       making effective comments, please visit
                                               U.S.C. 601 et seq.);                                    [EPA–R09–OAR–2018–0080; FRL–9974–                     http://www2.epa.gov/dockets/
                                                                                                       95—Region 9]                                          commenting-epa-dockets.
                                                  • does not contain any unfunded
                                               mandate or significantly or uniquely                    Revisions to California State                         FOR FURTHER INFORMATION CONTACT:
                                               affect small governments, as described                  Implementation Plan; Bay Area Air                     Laura Yannayon, EPA Region 9, (415)
                                               in the Unfunded Mandates Reform Act                     Quality Management District;                          972–3534, yannayon.laura@epa.gov.
                                               of 1995 (Pub. L. 104–4);                                Stationary Sources; New Source                        SUPPLEMENTARY INFORMATION:
                                                  • does not have Federalism                           Review                                                Throughout this document, the terms
                                               implications as specified in Executive                                                                        ‘‘we,’’ ‘‘us,’’ and ‘‘our’’ refer to the EPA.
                                               Order 13132 (64 FR 43255, August 10,                    AGENCY:  Environmental Protection
                                               1999);                                                  Agency (EPA).                                         Table of Contents
                                                  • is not an economically significant                 ACTION: Proposed rule.                                I. The State’s Submittal
                                               regulatory action based on health or                                                                             A. What rules did the State submit?
                                               safety risks subject to Executive Order                 SUMMARY:     The Environmental Protection                B. Are there other versions of these rules?
                                               13045 (62 FR 19885, April 23, 1997);                    Agency (EPA) is proposing to approve                     C. What is the purpose of the submitted
                                                  • is not a significant regulatory action             revisions to the Bay Area Air Quality                       rule revisions?
                                               subject to Executive Order 13211 (66 FR                 Management District (BAAQMD or                        II. The EPA’s Evaluation and Action
                                               28355, May 22, 2001);                                   District) portion of the California State                A. How is the EPA evaluating the rules?
                                                  • is not subject to requirements of                  Implementation Plan (SIP). These                         B. Do the rules meet the evaluation
                                                                                                       revisions concern permit program rules                      criteria?
                                               Section 12(d) of the National
                                                                                                       governing the issuance of permits for                    1. Regulation 2, Rules 1 and 2
                                               Technology Transfer and Advancement                                                                              2. Regulation 2, Rule 4
                                               Act of 1995 (15 U.S.C. 272 note) because                stationary sources, including review and
                                                                                                                                                                3. Requirements of 40 CFR 51.165(a)(13)
                                               application of those requirements would                 permitting of major sources and major                    4. Sections 110(a)(2) and 110(l) of the Act
                                               be inconsistent with the CAA; and                       modifications under parts C and D of                     5. Section 193 of the Act
                                                  • does not provide EPA with the                      title I of the Clean Air Act (CAA). The               III. Proposed Action and Public Comment
                                               discretionary authority to address, as                  revisions correct deficiencies in                     IV. Incorporation by Reference
                                               appropriate, disproportionate human                     BAAQMD Regulation 2, Rules 1 and 2,                   V. Statutory and Executive Order Reviews
                                                                                                       and Regulation 2, Rule 4, previously
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                                               health or environmental effects, using                                                                        Definitions
                                               practicable and legally permissible                     identified by the EPA in final rules
                                               methods, under Executive Order 12898                    dated August 1, 2016, and December 4,                   For the purpose of this document, we
                                               (59 FR 7629, February 16, 1994).                        2017, respectively. We are proposing to               are giving meaning to certain words or
                                                  In addition, this proposed rulemaking                approve revisions that correct the                    initials as follows:
                                               action, pertaining to New Jersey’s                      identified deficiencies.                                (i) The word or initials Act or CAA
                                               section 110(a)(2) infrastructure                        DATES: Any comments must arrive by                    mean or refer to the Clean Air Act,
                                               requirements for the 1997 and 2008                      April 2, 2018.                                        unless the context indicates otherwise.


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                                                                         Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules                                                           8823

                                                 (ii) The word or initials APCO mean                        (xi) The initials GHG mean or refer to                        (xx) The initials SO2 mean or refer to
                                               or refer to the Air Pollution Control                      greenhouse gases.                                             sulfur dioxide.
                                               Officer.                                                     (xii) The initials NAAQS mean or                              (xxi) The initials VOC mean or refer
                                                 (iii) The word or initials BAAQMD or                     refer to National Ambient Air Quality                         to volatile organic compound.
                                               District mean or refer to the Bay Area                     Standards.
                                               Air Quality Management District.                             (xiii) The initials NOX mean or refer                       I. The State’s Submittal
                                                 (iv) The initials BACT mean or refer                     to oxides of nitrogen.
                                               to Best Available Control Technology.                                                                                    A. What rules did the State submit?
                                                                                                            (xiv) The initials NSR mean or refer
                                                 (v) The words Bay Area mean or refer                     to New Source Review.                                           Table 1 lists the rules addressed by
                                               to the geographic area regulated by the
                                                                                                            (xv) The initials PM2.5 mean or refer                       this proposal with the dates they were
                                               Bay Area Air Quality Management
                                                                                                          to particulate matter with an                                 adopted by BAAQMD and submitted by
                                               District.
                                                                                                          aerodynamic diameter of less than or                          the CARB, which is the governor’s
                                                 (vi) The initials CARB mean or refer
                                                                                                          equal to 2.5 micrometers (fine                                designee for California SIP submittals.
                                               to the California Air Resources Board.
                                                 (vii) The initials CFR mean or refer to                  particulate matter).                                          Regulation 2, Rule 1 contains general
                                               Code of Federal Regulations.                                 (xvi) The initials POC mean or refer                        requirements that apply to all District
                                                 (viii) The initials or words EPA, we,                    to precursor organic compound.                                air quality permitting programs.
                                               us or our mean or refer to the United                        (xvii) The initials PSD mean or refer                       Regulation 2, Rule 2 contains the
                                               States Environmental Protection                            to Prevention of Significant                                  District’s New Source Review (NSR)
                                               Agency.                                                    Deterioration.                                                permit programs for both attainment
                                                 (ix) The initials ERC mean or refer to                     (xviii) The initials PTE mean or refer                      and nonattainment pollutants.
                                               Emission Reduction Credit.                                 to potential to emit                                          Regulation 2, Rule 4 contains
                                                 (x) The initials FR mean or refer to                       (xix) The initials SIP mean or refer to                     requirements for banking emission
                                               Federal Register.                                          State Implementation Plan.                                    reduction credits (ERCs).

                                                                                                                    TABLE 1—SUBMITTED RULES
                                                                  Regulation & Rule No.                                                         Rule title                                   Amended       Submitted

                                               Regulation 2, Rule 1 (Rule 2–1) ..................................   Permits, General Requirements ...................................          12/6/2017       12/14/17
                                               Regulation 2, Rule 2 (Rule 2–2) ..................................   Permits, New Source Review .......................................         12/6/2017       12/14/17
                                               Regulation 2, Rule 4 (Rule 2–4) ..................................   Permits, Emissions Banking .........................................       12/6/2017       12/14/17



                                                 On February 14, 2018, the EPA                            B. Are there other versions of these                          rules identified below in Table 2. The
                                               determined that the submittal of                           rules?                                                        EPA’s approval of the rules identified
                                               Regulation 2, Rules 1, 2 and 4 met the                                                                                   above in Table 1 would have the effect
                                               completeness criteria in 40 CFR part 51,                     The existing SIP-approved NSR                               of entirely superseding our prior
                                               appendix V, which must be met before                       program for new or modified stationary                        approval of these rules in the current
                                               formal EPA review.                                         sources in the Bay Area consists of the                       SIP-approved program.

                                                                                                                TABLE 2—EXISTING SIP RULES
                                                                  Regulation & Rule No.                                                         Rule title                                 Approval date   FR citation

                                               Regulation 2, Rule 1 (Rule 2–1) ..................................   Permits, General Requirements ...................................           8/1/2016   81 FR 50339
                                               Regulation 2, Rule 2 (Rule 2–2) ..................................   Permits, New Source Review .......................................          8/1/2016   81 FR 50339
                                               Regulation 2, Rule 4 (Rule 2–4) ..................................   Permits, Emissions Banking .........................................       12/4/2017   82 FR 57133



                                               C. What is the purpose of the submitted                    regulatory provisions of 40 CFR part 51,                      deficiencies and evaluate whether the
                                               rule revisions?                                            subpart I (Review of New Sources and                          submitted rule revisions correct the
                                                  This SIP submittal is intended to                       Modifications) (i.e., 40 CFR 51.160–                          deficiency. We also evaluate any
                                               correct deficiencies previously                            51.166) and 40 CFR 51.307.                                    additional rule revisions and whether
                                               identified by the EPA in our August 1,                                                                                   the submittal complies with the
                                                                                                          B. Do the rules meet the evaluation
                                               2016, limited approval and limited                                                                                       requirements of sections 110(a)(2),
                                                                                                          criteria?
                                               disapproval ction for Rules 2–1 and 2–                                                                                   110(l) and 193 of the CAA.
                                                                                                            In our previous August 1, 2016, and
                                               2 (81 FR 50339), and our December 4,                       December 4, 2017, actions we evaluated                        1. Regulation 2, Rules 1 and 2
                                               2017, conditional approval action for                      prior submissions of the submitted rules                        Our August 1, 2016 action identified
                                               Rule 2–4 (82 FR 57133).                                    in accordance with the CAA and                                the following eleven deficiencies in
                                               II. The EPA’s Evaluation and Action                        regulatory requirements listed in                             Rules 2–1 and 2–2.
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                                                                                                          Section II.A of this document. In those                         First, the definitions of ‘‘agricultural
                                               A. How is the EPA evaluating the rules?                    actions, we determined that for the most                      source’’ in Section 2–1–239 and ‘‘large
                                                 The evaluation criteria for the                          part the submitted rules satisfied the                        confined animal facility’’ used in
                                               submitted rules includes compliance                        applicable requirements for NSR permit                        Section 2–1–424 rely on other
                                               with the CAA’s requirements for SIPs in                    programs. However, in each action we                          definitions and provisions in District
                                               CAA sections 110(a)(2), 110(l), and 193.                   identified certain deficiencies that                          rules that are not SIP approved.
                                               In addition, the EPA evaluated the                         prevented full approval. For both of the                        Second, Section 2–1–234,
                                               submitted rules for consistency with the                   previous actions, we list the identified                      subparagraph 2.2, is deficient because it


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                                               8824                    Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules

                                               does not satisfy the PSD provisions at 40               modification actual emissions as                      located within 100 km of a Class I area.
                                               CFR 51.166(a)(7) and 51.166(r)(6) & (7),                required by 40 CFR 51.165(a)(3)(ii)(J).               In addition, language has been added to
                                               which require PSD programs to contain                      To address the first deficiency, the               this section to clarify how such a
                                               specific applicability procedures and                   definition of ‘‘agricultural source’’ in              determination is to be made by
                                               recordkeeping provisions.                               Section 2–1–239 and the reference to                  referencing the guidelines adopted by
                                                  Third, the same deficiency discussed                 ‘‘large confined animal facility’’ used in            the Federal Land Managers Air Quality
                                               above for the PSD provisions applies to                 Section 2–1–424 have been revised to                  Related Values Work Group. These
                                               the nonattainment NSR provisions.                       remove references to ‘‘Regulation 2,                  revisions cure this deficiency.
                                               Section 2–1–234, subparagraph 2.1,                      Rule 10,’’ which is not SIP approved.                   To address the eighth deficiency,
                                               does not satisfy the requirements of 40                 The District made additional edits to                 Section 2–2–411.1 has been revised to
                                               CFR 51.165(a)(2) and 51.165(a)(6) & (7),                both of these provisions, as well as                  specify that if excess offsets are
                                               which require nonattainment NSR                         Subsection 2–1–113.1.2, to provide                    provided, an offset refund request must
                                               programs to contain specific                            additional information due to the                     be made within 2 years of the issuance
                                               applicability procedures and                            removal of the references to Regulation               of the authority to construct or within
                                               recordkeeping provisions.                               2, Rule 10. These revisions cure this                 6 months of issuance of the permit to
                                                  Fourth, the definition of the term                   deficiency because the rules no longer                operate. Section 2–2–411.2 has been
                                               ‘‘PSD pollutant’’ as defined in Section                 reference rules which are not SIP                     revised to specify that if a source is
                                               2–2–223, which is used in place of the                  approved.                                             never constructed or operated, and the
                                               federal definition for the term                            To address the second deficiency,                  authority to construct for the source has
                                               ‘‘regulated NSR pollutant,’’ is deficient               Section 2–1–234 has been revised by                   expired or been surrendered, an offset
                                               because it explicitly excludes                          adding two new subparagraphs (2.3 and                 refund request must be made within 2
                                               nonattainment pollutants.                               2.4) to include the specific applicability            years of the issuance or renewal of the
                                                  Fifth, Section 2–2–305 does not                      procedures and recordkeeping                          authority to construct. These revisions
                                                                                                       provisions required by 40 CFR                         cure this deficiency.
                                               require written approval of the
                                                                                                       51.166(a)(7) and 51.166(r)(6) & (7).                    To address the ninth identified
                                               Administrator prior to using any
                                                                                                       These two new subparagraphs are                       deficiency, Section 2–2–415—
                                               modified or substituted air quality
                                                                                                       acceptable to cure this deficiency.                   Additional Offset Requirements Where
                                               model as provided in subsection 3.2.2 of                   To address the third deficiency,                   District Has Not Demonstrated NOX,
                                               40 CFR part 51, appendix W.                             Section 2–1–234 has been revised by                   POC or PM2.5 Offset Program
                                                  Sixth, Section 2–2–611 does not                      adding two new subparagraphs (2.3 and                 Equivalence, has been added to specify
                                               include the requirement regarding ‘‘any                 2.4) to include the specific applicability            that if the demonstration required by
                                               other stationary source category which                  procedures and recordkeeping                          Section 2–2–412 is not made by March
                                               as of August 7, 1980, is being regulated                provisions required by 40 CFR                         1 of each year (or other EPA-approved
                                               under section 111 or 112 of the Act’’ in                51.165(a)(2) and 51.165(a)(6) & (7).                  date), the Air Pollution Control Officer
                                               the list of source categories that must                 These two new subparagraphs are                       (APCO) shall require additional offsets
                                               include fugitive emissions to determine                 acceptable to cure this deficiency.                   for any subsequent Authority to
                                               whether a source is a major facility.                      To address the fourth deficiency,                  Construct and/or Permit to Operate for
                                                  Seventh, Section 2–2–401.4 only                      Section 2–2–224 has been revised to                   a Federal Major NSR Source sufficient
                                               requires a visibility analysis for sources              reference the term ‘‘Regulated NSR                    to make up for (i) any Federal Offsets
                                               that are located within 100 km of a Class               Pollutant’’ rather than ‘‘PSD pollutant.’’            Baseline Shortfall calculated pursuant
                                               I area, rather than for any source that                 This revision cures the deficiency by                 to Section 2–2–229 and (ii) any Federal
                                               ‘‘may have an impact on visibility’’ in                 ensuring that a Major PSD Facility                    Surplus-at-Time-of-Use Shortfall
                                               any mandatory Class I Federal Area, as                  determination (as specified in                        calculated pursuant to Section 2–2–230.
                                               required by 40 CFR 51.307(b)(2).                        Subsection 224.1) is based on emissions               The new provision also states that this
                                                  Eighth, Section 2–2–411 pertaining to                of all regulated NSR pollutants,                      requirement shall continue until the
                                               Offset Refunds does not contain any                     including any nonattainment pollutant.                District has made the required
                                               timeframe for obtaining an offset refund.                  To address the fifth deficiency,                   equivalence demonstration.
                                                  Ninth, the Offset Program Equivalence                Section 2–2–305.3—Air Quality Models,                   These new provisions cure this
                                               demonstration required by Section 2–2–                  has been revised to require written EPA               deficiency because they ensure an
                                               412 does not provide a remedy if the                    approval prior to using any modified or               applicant will provide the full amount
                                               District fails to make the required                     substituted air quality model. This                   of federal offsets required for a new
                                               demonstration.                                          revision cures this deficiency.                       project if the District fails to make the
                                                  Tenth, Subsection 2–2–605.2 allows                      To address the sixth deficiency,                   required annual demonstration. The
                                               existing ‘‘fully-offset’’ sources to                    Section 2–2–611 has been revised to add               EPA recognizes that any shortfall for a
                                               generate ERCs based on the difference                   the following language: ‘‘or is in any                year in which the District does not
                                               between the post-modification PTE and                   other stationary source category that                 provide an adequate demonstration will
                                               the pre-modification PTE. Emission                      was being regulated under section 111                 not be immediately corrected, but it will
                                               reductions intended to be used as offsets               or 112 of the Clean Air Act as of August              be corrected prior to continued usage of
                                               for new major sources or major                          7, 1980.’’ This revision cures this                   the offset equivalence demonstration.
                                               modifications are only creditable if they               deficiency by adding the missing                      The EPA finds this acceptable.
                                               are reductions of actual emissions, not                 required language.                                      To address the tenth identified
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                                               reductions in the PTE of a source.                         To address the seventh deficiency,                 deficiency, Subsection 2–2–605.1 has
                                                  Eleventh, Subsection 2–2–606.2, as it                Section 2–2–401.4 has been revised to                 been revised to clarify the requirements
                                               applies to major modifications, does not                indicate an analysis of potential impacts             of an eligible emission reduction credit
                                               require ‘‘fully-offset’’ sources to                     to air quality related values is required             and Subsection 2–2–605.2 has been
                                               calculate the emission increases from a                 for a project which ‘‘may have an                     revised to eliminate a separate
                                               proposed major modification based on                    impact on air quality related values                  calculation methodology for ‘‘fully-
                                               the difference between the post-                        (including visibility) within any Class I             offset’’ sources. The provision has also
                                               modification PTE and the pre-                           area(s),’’ rather than only projects                  been revised to specify that the amount


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                                                                       Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules                                                     8825

                                               of emission reduction shall be                          these revised and new provisions are                  2. Regulation 2, Rule 4
                                               calculated as the difference between: (i)               acceptable to cure this deficiency.                      Our December 4, 2017 action
                                               The source’s adjusted baseline                             In addition to the revisions made to               identified the following three
                                               emissions before the change calculated                  address the identified deficiencies                   deficiencies in Rule 2–4.
                                               pursuant to Section 2–2–603; and (ii)                   discussed above, the District made                       First, Rule 2–4 is deficient because it
                                               the source’s potential to emit after the                several additional minor rule revisions.              defines the term ERCs as emission
                                               change. This revision cures this                        In Rule 2–1, the definitions for the terms            reductions ‘‘that are in excess of the
                                               deficiency because it ensures that the                  ‘‘Facility’’ and ‘‘New Source’’ were                  reductions required by applicable
                                               amount of ERC is based on actual                        revised to provide additional                         regulatory requirements, and that are
                                               emission reductions.                                    clarification regarding portable                      real, permanent, quantifiable, and
                                                  To address the eleventh identified                   equipment. The provisions of                          enforceable,’’ but does not contain any
                                               deficiency, the calculation methodology                 Subsection 2–1–234.2 were revised to                  enforceable provisions requiring the
                                               specified in Subsection 2–2–606.2 was                   clarify which specific provisions of 40               APCO to determine that the emission
                                               not revised. Instead, Section 2–2–412—                  CFR 51.165 (for nonattainment                         reductions under review meet the offset
                                               Demonstration of NOX, POC and PM2.5                     pollutants) and 40 CFR 52.21 (for other               integrity criteria prior to issuing an ERC
                                               Offset Program Equivalence, was revised                 Federal NSR pollutants) must be used to               Certificate.
                                               to require the District to provide an                   determine if an emissions increase from                  Second, Rule 2–4 is deficient because
                                               annual demonstration that the District’s                a project will result in a major                      it incorporates the deficient emission
                                               NSR program as a whole has obtained                     modification as defined in 40 CFR                     reduction calculation procedures found
                                               at least as many NOX, POC and PM2.5                     51.165 or 52.21, as applicable. These                 in Rule 2–2 subsection 605.2. This
                                               offsets as would have been required                     revisions provide important                           deficiency in Rule 2–2–605.2 is
                                               pursuant to the provisions of 40 CFR                    clarifications to ensure the provisions               discussed in Section II.B.1 of the
                                               51.165 for federal major sources during                 are enforceable, as required by CAA                   present document, and is identified as
                                               the previous calendar year. We note that                section 110(a)(2)(C), and do not revise               deficiency number ten.
                                               although section 2–2–412 was modified                   any of the requirements for determining                  Third, Rule 2–4 is deficient because
                                               to include PM2.5, the revisions to                      if a project will result in a major                   Section 2–4–302.3 allows ERC
                                               Section 2–2–412 do not contain any                      modification. Therefore we find the                   Certificates to be issued that do not
                                               provisions for demonstrating                            revisions to Subsection 2–1–234.2                     adequately ensure the permanency of an
                                               equivalency with SO2 offset                             acceptable. Section 2–1–413—Permits                   emission reduction due to a facility
                                               requirements. In section II.B.3 of this                 for Operation of Equipment at Multiple                closure.
                                               preamble we discuss our reasoning for                   Locations Within the District, was                       To address the first deficiency,
                                               proposing approval of Rule 2–2 without                  revised by adding new Subsection                      Section 2–4–301 has been revised by
                                               requiring an equivalency demonstration                  413.7. This new provision ensures that                adding language clarifying that emission
                                               for SO2 offsets.                                        equipment permitted under this                        reductions may be banked only if the
                                                  In addition, new definitions for the                 provision do not effectively become                   APCO determines (i) that the reductions
                                               terms Federal Major NSR Source,                         ‘‘stationary source equipment’’ by                    satisfy all of the criteria necessary to
                                               Federal Offsets Baseline Shortfall,                     residing at a single stationary source for            constitute Emission Reduction Credits
                                               Federal Surplus-at-Time of Use Shortfall                more than 12 months. We find these                    as defined in Section 2–2–211,
                                               and Equivalence Credit were added to                    revisions acceptable. Revisions were                  including but not limited to the
                                               define these terms as used in Section 2–                also made to Section 2–1–424—Loss of                  requirements that the reductions are
                                               2–412. We find these new definitions                    Exemption or Exclusion to remove the                  real, permanent, quantifiable, and
                                               acceptable.                                             reference to non-SIP approved Rule 2–                 enforceable, and are calculated in
                                                                                                       10, and provide additional clarification              accordance with Section 2–2–605; and
                                                  In the current SIP, the annual Offset
                                                                                                       regarding the applicability of this                   (ii) that banking the reductions is not
                                               Program Equivalence Demonstration is
                                                                                                       provision. These revisions do not                     prohibited by Section 2–4–303. These
                                               only required to account for the
                                                                                                       change the requirements of this section,              revisions cure this deficiency because
                                               difference between the quantity of
                                                                                                       therefore we find the revisions                       they ensure that emission reductions
                                               offsets obtained by the District using
                                                                                                       acceptable.                                           may only be banked after the APCO
                                               ERCs surplus adjusted solely at the time
                                                                                                          In Rule 2–2, the definitions for the               determines the offset integrity criteria
                                               of generation and the subset of those
                                                                                                       terms ‘‘Adjustment to Emission                        have been met.
                                               offsets that continue to be surplus at the                                                                       To address the second deficiency,
                                                                                                       Reductions for Federal Purposes’’ and
                                               time of use. The new provisions require                                                                       Section 2–2–605.2 has been revised to
                                                                                                       ‘‘Fully Offset Source’’ were deleted
                                               the District to also calculate the                                                                            eliminate a separate calculation
                                                                                                       because the rule no longer uses these
                                               difference between the amount of offsets                                                                      methodology for ‘‘fully-offset’’ sources.
                                                                                                       terms. In Section 2–2–214, the
                                               provided pursuant to the provisions of                                                                        This revision is discussed in more detail
                                                                                                       definition of ‘‘Greenhouse Gases’’ was
                                               Subsection 2–2–606.2, and the amount                                                                          in section II.B.1 of the present document
                                                                                                       revised to remove the requirement that
                                               required pursuant to the provisions of                                                                        in the discussion of deficiency number
                                                                                                       such gases be measured on a mass basis
                                               40 CFR 51.165, when applied to new                                                                            ten. Because the second identified
                                                                                                       consistent with the Supreme Court’s
                                               and modified major sources. We have                                                                           deficiency in Rule 2–4 stems from the
                                                                                                       decision in Utility Air Regulatory Group
                                               reviewed the language added to Section                                                                        incorporation of a deficiency in Section
                                                                                                       v. EPA, and the subsequent Judgment in
                                               2–2–412 and new Section 2–2–415, and                                                                          2–2–605.2, and we found in Section
                                                                                                       the United States Court of Appeals for
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                                               have determined that the provisions of
                                                                                                       the District of Columbia Circuit in
                                               Rule 2–2 will ensure that in the
                                                                                                       Coalition for Responsible Regulation,                 provisions of the federal Clean Air Act regarding
                                               aggregate an equivalent number of ERCs                                                                        the Act’s PSD permit program requirements. On
                                                                                                       Inc. v. EPA regarding the treatment of
                                               will be provided as would otherwise be                                                                        April 10, 2015, the D.C. Circuit Court of Appeals
                                                                                                       GHGs in the PSD program.1                             effectuated the Supreme Court’s judgment by
                                               required by a NSR program without an
                                                                                                                                                             vacating portions of the EPA’s PSD regulations
                                               equivalence mechanism that met the                        1 In 2014 the U.S. Supreme Court issued a ruling    addressing GHGs. See Coalition for Responsible
                                               offset quantification provisions                        in Utility Air Regulatory Group v. EPA, 134 S.Ct.     Regulation, Inc. v. EPA, 606 Fed. Appx. 6 (Apr. 10,
                                               specified in 40 CFR 51.165. We find that                2427 (2014) that interpreted several relevant         2015).



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                                               8826                    Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules

                                               II.B.1 above that the District’s                        to identify new major stationary sources              412—Demonstration of NOX, POC and
                                               amendments to Rule 2–2 cure this                        and major modifications of [that]                     PM2.5 Offset Program Equivalence.
                                               deficiency, we also find that the                       precursor that will not be considered to
                                                                                                                                                             4. Sections 110(a)(2) and 110(l) of the
                                               corresponding deficiency cited in Rule                  contribute significantly to PM2.5 levels
                                                                                                                                                             Act
                                               2–4 pertaining to how the quantity of an                that exceed the standard in the
                                               emission reduction is calculated has                    nonattainment area.’’ As part of the                     We are proposing to find that
                                               been cured.                                             current SIP submittal, the District has               Regulation 2, Rules 1, 2 and 4 satisfy the
                                                  To address the third identified                      provided an analysis in accordance with               requirements of sections 110(a)(2) and
                                               deficiency, Section 2–4–302.3 has been                  the requirements of 40 CFR                            110(l) of the CAA. These sections state
                                               removed from Rule 2–4. This revision                    51.1006(a)(3).3                                       that each SIP revision submitted by a
                                               cures this deficiency by removing the                     The analysis used the Community                     State shall be adopted by such State
                                               deficient provision.                                    Multiscale Air Quality (CMAQ) Model                   after reasonable notice and public
                                                  In addition to the revisions to Rule 2–              and California Puff Model (CALPUFF)                   hearing. Section 110(l) also states that
                                               4 discussed above, the District deleted                 to model the impacts of 7 new                         the Administrator shall not approve a
                                               Section 301.7, which provided an                        greenfield sources emitting 370 tpy of                SIP revision if the revision would
                                               example of a bankable emission                          SO2 along with a 20% increase of                      interfere with any applicable
                                               reduction. Because this was only an                     current SO2 emissions from existing                   requirement concerning attainment and
                                               example, this deletion has no effect on                 sources to determine if such increases                reasonable further progress, or any other
                                               the approvability of Rule 2–4.                          would contribute significantly to PM2.5               CAA applicable requirement.
                                                  Our December 4, 2017, conditional                    levels that exceed the standard in the                   With respect to the procedural
                                               approval action (82 FR 57133) was                       area. The District provided reasoned                  requirements of CAA sections 110(a)(2)
                                               predicated on the state’s commitment to                 explanations for choosing the number,                 and 110(l), based on our review of the
                                               submit SIP revisions to cure the three                  size and location of the new sources to               public process documentation included
                                               identified deficiencies. Because we are                 be modeled. For the CMAQ and                          in the December 14, 2017 SIP submittal
                                               proposing to find that the present                      CALPUFF modeling, the maximum                         package, we find that BAAQMD has
                                               submission cures these deficiencies, we                 contribution was just under 0.6 mg/m3                 provided sufficient evidence of public
                                               also propose to find that the state has                 and 0.68 mg/m3, respectively. Both of                 notice and opportunity for comment
                                               fulfilled its commitment. If finalized as               these contribution estimates are well                 and public hearings prior to adoption
                                               proposed, the EPA would fully approve                   under the recommended insignificance                  and submittal of these rules to the EPA.
                                               the submitted version of Rule 2–4 into                                                                           With respect to the substantive
                                                                                                       threshold of 1.3 mg/m3 contained in
                                               the SIP, curing the previously identified                                                                     requirements of section 110(l), we have
                                                                                                       EPA’s draft PM2.5 Precursor
                                               deficiencies, and remove the                                                                                  determined that our approval of the
                                                                                                       Demonstration Guidance.4
                                               conditional approval contained in 40                                                                          BAAQMD NSR SIP submittal represents
                                                                                                         Based on the information provided in
                                               CFR 52.248(c).                                                                                                a strengthening of BAAQMD’s NSR
                                                                                                       the District’s submitted analysis, EPA is
                                                                                                                                                             program as compared to the District’s
                                               3. Requirements of 40 CFR 51.165(a)(13)                 proposing to approve the District’s
                                                                                                                                                             current SIP-approved NSR program that
                                                  For any area designated                              demonstration that SO2 emissions from
                                                                                                                                                             was last approved on August 1, 2016,
                                               nonattainment for PM2.5, 40 CFR                         new and modified major SO2 sources
                                                                                                                                                             and that the revision would not interfere
                                                                                                       will not contribute significantly to 24-
                                               51.165(a)(13) requires a nonattainment                                                                        with any applicable CAA requirement.
                                                                                                       hour PM2.5 concentrations exceeding the
                                               NSR program to require the same                                                                               Therefore we are proposing full
                                               control requirements applicable to                      standard in the area. A more detailed
                                                                                                                                                             approval of the BAAQMD NSR SIP
                                               major stationary sources and major                      summary of the District’s demonstration
                                                                                                                                                             submittal under section 110(l) of the
                                               modifications of PM2.5 to all PM2.5                     and the EPA’s analysis can be found in
                                                                                                                                                             Act.
                                                                                                       the docket for this action.
                                               precursors. A permitting authority may
                                                                                                         Based on our approval of the District’s             5. Section 193 of the Act
                                               exclude a specific precursor from this
                                                                                                       non-significance demonstration for SO2,                  Section 193 of the Act includes a
                                               requirement if they submit—and the
                                               EPA approves—a precursor                                we find it acceptable that Section 2–2–               savings clause which provides, in
                                               demonstration that meets the conditions                 412—Demonstration of NOX, POC and                     pertinent part: ‘‘No control requirement
                                               for a nonattainment NSR precursor                       PM2.5 Offset Program Equivalence, does                in effect, or required to be adopted by
                                               demonstration as set forth in 40 CFR                    not require an annual demonstration                   an order, settlement agreement, or plan
                                               51.1006(a)(3). In our August 1, 2016                    that an equivalent number of SO2 offsets              in effect before November 15, 1990, in
                                               action we found that Rule 2–2 satisfied                 are required under Rule 2–2, as would                 any area which is a nonattainment area
                                               the requirements of CAA section 189(e),                 otherwise be required under a fully                   for any air pollutant may be modified
                                               which are now enacted through 40 CFR                    compliant nonattainment NSR program.                  after November 15, 1990, in any manner
                                               51.165(a)(13), for SO2, NOX, and VOC,                   While Section 2–2–303 requires offsets                unless the modification insures
                                                                                                       for SO2 emissions (as required by state               equivalent or greater emission
                                               and we approved a demonstration for
                                               ammonia allowing it to be excluded                      law), the District will not be required to            reductions of such air pollutant.’’
                                               from this requirement.2 A                               include any offsets provided for SO2                     We have reviewed the provisions
                                                                                                       major sources in the annual equivalency               included in BAAQMD’s NSR SIP
                                               nonattainment NSR precursor
                                                                                                       demonstration required by Section 2–2–                submittal and find that they would
                                               demonstration must ‘‘evaluate the
                                               sensitivity of PM2.5 levels in the                                                                            ensure equivalent or greater emission
                                                                                                         3 Final Report: Demonstration of SO Precursor
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                                               nonattainment area to an increase in
                                                                                                                                              2              reductions compared to the current SIP-
                                                                                                       Contributions to PM2.5 in the San Francisco Bay
                                               emissions of a particular precursor.’’ If               Area, Bay Area Air Quality Management District,       approved NSR program. The BACT and
                                               the changes ‘‘are not significant, based                with technical assistance from Ramboll Environ,       offset requirements of the submitted
                                               on the facts and circumstances of the                   November 30, 2017.                                    rules, which are the primary control
                                                                                                         4 Draft PM
                                                                                                                    2.5 Precursor Demonstration Guidance,    requirements of a NSR program, are
                                               area, the state may use that information                EPA–454/P–16–001, U.S. EPA OAQPS, November
                                                                                                       17, 2016, available at https://www.epa.gov/pm-
                                                                                                                                                             equivalent to or more stringent than
                                                 2 See 80 FR 52236, 52242–3 (August 28, 2015), 81      pollution/draft-pm25-precursor-demonstration-         those contained in the existing SIP-
                                               FR 50339, 50341.                                        guidance.                                             approved NSR rules. Therefore, we can


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                                                                       Federal Register / Vol. 83, No. 41 / Thursday, March 1, 2018 / Proposed Rules                                                  8827

                                               approve the submitted NSR program                       October 4, 1993) and 13563 (76 FR 3821,                 Dated: February 20, 2018.
                                               under section 193 of the Act.                           January 21, 2011);                                    Alexis Strauss,
                                               III. Proposed Action and Public                            • Is not an Executive Order 13771 (82              Acting Regional Administrator, Region IX.
                                               Comment                                                 FR 9339, February 2, 2017) regulatory                 [FR Doc. 2018–04112 Filed 2–28–18; 8:45 am]
                                                                                                       action because SIP approvals are                      BILLING CODE 6560–50–P
                                                  As authorized in section 110(k)(3) of                exempted under Executive Order 12866;
                                               the Act, the EPA is proposing to fully
                                               approve the submitted rules because we                     • Does not impose an information
                                                                                                       collection burden under the provisions                ENVIRONMENTAL PROTECTION
                                               believe they fulfill all relevant                                                                             AGENCY
                                               requirements. In support of this                        of the Paperwork Reduction Act (44
                                               proposed action, we have concluded                      U.S.C. 3501 et seq.);                                 40 CFR Part 174
                                               that our approval of the submitted rules                   • Is certified as not having a
                                               would comply with sections 110(a)(2),                   significant economic impact on a                      [EPA–HQ–OPP–2018–0040; FRL–9973–57]
                                               110(l) and 193 of the Act because the                   substantial number of small entities
                                               amended rules would not interfere with                  under the Regulatory Flexibility Act (5               Receipt of a Pesticide Petition Filed for
                                               any applicable requirement concerning                   U.S.C. 601 et seq.);                                  Residues of Pesticide Chemicals in or
                                               attainment of the NAAQS in the Bay                         • Does not contain any unfunded                    on Various Commodities
                                               Area, and do not relax control                          mandate or significantly or uniquely
                                               technology and offset requirements. If                  affect small governments, as described                AGENCY:  Environmental Protection
                                               we finalize this action as proposed, our                in the Unfunded Mandates Reform Act                   Agency (EPA).
                                               action would be codified through                        of 1995 (Pub. L. 104–4);                              ACTION: Notice of filing of petition and
                                               revisions to 40 CFR 52.220                                 • Does not have Federalism                         request for comment.
                                               (Identification of plan—in part), and                   implications as specified in Executive
                                               removal of the conditional approval                                                                           SUMMARY:   This document announces the
                                                                                                       Order 13132 (64 FR 43255, August 10,                  Agency’s receipt of an initial filing of a
                                               contained in 40 CFR 52.248(c).                          1999);
                                                  We will accept comments from the                                                                           pesticide petition requesting the
                                                                                                          • Is not an economically significant               establishment or modification of
                                               public on the proposed approval of
                                                                                                       regulatory action based on health or                  regulations for residues of pesticide
                                               Rules 2–1, 2–2, and 2–4 for the next 30
                                                                                                       safety risks subject to Executive Order               chemicals in or on various commodities.
                                               days.
                                                                                                       13045 (62 FR 19885, April 23, 1997);                  DATES: Comments must be received on
                                               IV. Incorporation by Reference                             • Is not a significant regulatory action           or before April 2, 2018.
                                                  In this rule the EPA is proposing to                 subject to Executive Order 13211 (66 FR               ADDRESSES: Submit your comments,
                                               include in a final EPA rule regulatory                  28355, May 22, 2001);                                 identified by docket identification (ID)
                                               text that includes incorporation by                        • Is not subject to requirements of                number EPA–HQ–OPP–2018–0040, by
                                               reference. In accordance with                           section 12(d) of the National                         one of the following methods:
                                               requirements of 1 CFR 51.5, the EPA is                  Technology Transfer and Advancement                     • Federal eRulemaking Portal: http://
                                               proposing to incorporate by reference                   Act of 1995 (15 U.S.C. 272 note) because              www.regulations.gov. Follow the online
                                               the BAAQMD rules listed in Table 1 of                   application of those requirements would               instructions for submitting comments.
                                               this preamble. The EPA has made, and                    be inconsistent with the Clean Air Act;               Do not submit electronically any
                                               will continue to make, these materials                  and                                                   information you consider to be
                                               available electronically through                           • Does not provide the EPA with the                Confidential Business Information (CBI)
                                               www.regulations.gov and in hard copy                    discretionary authority to address                    or other information whose disclosure is
                                               at the EPA Region IX Office (please                     disproportionate human health or                      restricted by statute.
                                               contact the person identified in the FOR                environmental effects with practical,                   • Mail: OPP Docket, Environmental
                                               FURTHER INFORMATION CONTACT section of                  appropriate, and legally permissible                  Protection Agency Docket Center (EPA/
                                               this preamble for more information).                    methods under Executive Order 12898                   DC), (28221T), 1200 Pennsylvania Ave.
                                               V. Statutory and Executive Order                        (59 FR 7629, February 16, 1994).                      NW, Washington, DC 20460–0001.
                                               Reviews                                                    In addition, the SIP is not approved                 • Hand Delivery: To make special
                                                                                                       to apply on any Indian reservation land               arrangements for hand delivery or
                                                 Under the Clean Air Act, the
                                                                                                       or in any other area where the EPA or                 delivery of boxed information, please
                                               Administrator is required to approve a
                                                                                                       an Indian tribe has demonstrated that a               follow the instructions at http://
                                               SIP submission that complies with the
                                                                                                       tribe has jurisdiction. In those areas of             www.epa.gov/dockets/contacts.html.
                                               provisions of the Act and applicable
                                                                                                       Indian country, the rule does not have                  Additional instructions on
                                               federal regulations. 42 U.S.C. 7410(k);
                                                                                                       tribal implications and will not impose               commenting or visiting the docket,
                                               40 CFR 52.02(a). Thus, in reviewing SIP
                                                                                                       substantial direct costs on tribal                    along with more information about
                                               submissions, the EPA’s role is to
                                                                                                       governments or preempt tribal law as                  dockets generally, is available at http://
                                               approve state choices, provided that
                                                                                                       specified by Executive Order 13175 (65                www.epa.gov/dockets.
                                               they meet the criteria of the Clean Air
                                               Act. Accordingly, this proposed action                  FR 67249, November 9, 2000).                          FOR FURTHER INFORMATION CONTACT:
                                               merely proposes to approve state law as                 List of Subjects in 40 CFR Part 52                    Robert McNally, Biopesticides and
                                               meeting federal requirements and does                                                                         Pollution Prevention Division (7511P),
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                                               not impose additional requirements                        Environmental protection, Air                       Office of Pesticide Programs,
                                               beyond those imposed by state law. For                  pollution control, Incorporation by                   Environmental Protection Agency, 1200
                                               that reason, this proposed action:                      reference, Intergovernmental relations,               Pennsylvania Ave. NW, Washington, DC
                                                 • Is not a ‘‘significant regulatory                   Nitrogen dioxide, Ozone, Particulate                  20460–0001; main telephone number:
                                               action’’ subject to review by the Office                matter, Reporting and recordkeeping                   (703) 305–7090; email address:
                                               of Management and Budget under                          requirements.                                         BPPDFRNotices@epa.gov.
                                               Executive Orders 12866 (58 FR 51735,                      Authority: 42 U.S.C. 7401 et seq.                   SUPPLEMENTARY INFORMATION:



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Document Created: 2018-02-28 23:58:12
Document Modified: 2018-02-28 23:58:12
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesAny comments must arrive by April 2, 2018.
ContactLaura Yannayon, EPA Region 9, (415) 972-3534, [email protected]
FR Citation83 FR 8822 
CFR AssociatedEnvironmental Protection; Air Pollution Control; Incorporation by Reference; Intergovernmental Relations; Nitrogen Dioxide; Ozone; Particulate Matter and Reporting and Recordkeeping Requirements

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