[Federal Register Volume 76, Number 50 (Tuesday, March 15, 2011)]
[Proposed Rules]
[Pages 13962-13966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6009]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2010-0958-201104; FRL-9280-7]


Approval and Promulgation of Implementation Plans; South 
Carolina: Prevention of Significant Deterioration and Nonattainment New 
Source Review; Fine Particulate Matter and Nitrogen Oxides as a 
Precursor to Ozone

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the South Carolina 
State Implementation Plan (SIP), submitted by the State of South 
Carolina, through the South Carolina Department of Health and 
Environmental Control (SC DHEC), to EPA on December 2, 2010, for 
parallel processing. The proposed SIP revision modifies South 
Carolina's New Source Review (NSR) Prevention of Significant 
Deterioration (PSD) and Nonattainment New Source Review (NNSR) 
programs. The proposed revision makes two changes for which EPA is 
proposing approval in today's rulemaking. First, the revision 
incorporates NSR provisions for fine particulate matter (also known as 
PM<INF>2.5</INF>) as amended in EPA's 2008 NSR PM<INF>2.5</INF> 
Implementation Rule (hereafter referred to as the ``NSR 
PM<INF>2.5</INF> Rule'') into the South Carolina SIP. Second, the 
proposed revision addresses a PSD permitting requirement promulgated in 
the 1997 8-Hour Ozone National Ambient Air Quality Standards (NAAQS) 
Implementation Rule NSR Update Phase II (hereafter referred to as the 
``Ozone Implementation NSR Update or Phase II Rule''). Both changes in 
the proposed SIP revision are necessary to comply with federal 
regulations related to South Carolina's NSR permitting program. EPA is 
proposing approval of the December 2, 2010, proposed SIP revision 
because the Agency has preliminarily determined that the revisions are 
in accordance with the Clean Air Act (CAA or Act) and EPA regulations 
regarding NSR permitting.

DATES: Comments must be received on or before April 14, 2011.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2010-0958 by one of the following methods:
    1. http://www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. E-mail: <a href="/cdn-cgi/l/email-protection#7a181f14101b1713145416031415081b1f3a1f0a1b541d150c"><span class="__cf_email__" data-cfemail="284a4d46424945414606445146475a494d684d5849064f475e">[email protected]</span></a>.
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2010-0958, Regulatory Development Section, Air 
Planning Branch, Air, Pesticides and Toxics Management Division, U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street, SW., 
Atlanta, Georgia 30303-8960.
    5. Hand Delivery or Courier: Ms. Lynorae Benjamin, Chief, 
Regulatory Development Section, Air Planning Branch, Air, Pesticides 
and Toxics Management Division, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street, SW., Atlanta, Georgia 30303-8960. Such 
deliveries are only accepted during the Regional Office's normal hours 
of operation. The Regional Office's official hours of business are 
Monday through Friday, 8:30 to 4:30, excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. ``EPA-R04-OAR-
2010-0958.'' EPA's policy is that all comments

[[Page 13963]]

received will be included in the public docket without change and may 
be made available online at http:[sol][sol]www.regulations.gov, 
including any personal information provided, unless the comment 
includes information claimed to be Confidential Business Information 
(CBI) or other information whose disclosure is restricted by statute. 
Do not submit through http:[sol][sol]www.regulations.gov or e-mail, 
information that you consider to be CBI or otherwise protected. The 
http:[sol][sol]www.regulations.gov Web site is an ``anonymous access'' 
system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA without going through 
http:[sol][sol]www.regulations.gov, your e-mail address will be 
automatically captured and included as part of the comment that is 
placed in the public docket and made available on the Internet. If you 
submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional information about EPA's public 
docket visit the EPA Docket Center homepage at 
http:[sol][sol]www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the electronic docket are listed in the 
http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in http://www.regulations.gov or in hard copy at the Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. EPA requests that if at all 
possible, you contact the person listed in the FOR FURTHER INFORMATION 
CONTACT section to schedule your inspection. The Regional Office's 
official hours of business are Monday through Friday, 8:30 to 4:30, 
excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: For information regarding the South 
Carolina SIP, contact Ms. Twunjala Bradley, Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, U.S. Environmental Protection Agency, Region 4, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. Ms. Bradley's telephone 
number is (404) 562-9352; e-mail address: <a href="/cdn-cgi/l/email-protection#87e5f5e6e3ebe2fea9f3f0f2e9ede6ebe6c7e2f7e6a9e0e8f1"><span class="__cf_email__" data-cfemail="8fedfdeeebe3eaf6a1fbf8fae1e5eee3eecfeaffeea1e8e0f9">[email protected]</span></a>. For 
information regarding NSR, contact Ms. Yolanda Adams, Air Permits 
Section, at the same address above. Ms. Adams' telephone number is 
(404) 562-9241; e-mail address: <a href="/cdn-cgi/l/email-protection#fe9f9a9f938dd08791929f909a9fbe9b8e9fd0999188"><span class="__cf_email__" data-cfemail="ec8d888d819fc29583808d82888dac899c8dc28b839a">[email protected]</span></a>. For information 
regarding the Phase II Rule, contact Ms. Jane Spann, Regulatory 
Development Section, at the same address above. Ms. Spann's telephone 
number is (404) 562-9029; e-mail address: <a href="/cdn-cgi/l/email-protection#651615040b0b4b0f040b00250015044b020a13"><span class="__cf_email__" data-cfemail="077477666969296d6669624762776629606871">[email protected]</span></a>. For 
information regarding the PM<INF>2.5</INF> NAAQS, contact Mr. Joel 
Huey, Regulatory Development Section, at the same address above. Mr. 
Huey's telephone number is (404) 562-9104; e-mail address: 
<a href="/cdn-cgi/l/email-protection#bbd3cedec295d1d4ded7fbdecbda95dcd4cd"><span class="__cf_email__" data-cfemail="a7cfd2c2de89cdc8c2cbe7c2d7c689c0c8d1">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. What action is EPA proposing in today's notice?
II. What is the background for the action proposed by EPA in today's 
notice regarding NSR permitting requirements for the 
PM<INF>2.5</INF> NAAQS?
III. What is the background for the action proposed by EPA in 
today's notice regarding the Phase II Rule for NO<INF>X</INF> as an 
ozone precursor?
IV. What is EPA's analysis of South Carolina's SIP revision?
V. Proposed Action
VI. Statutory and Executive Order Reviews

I. What action is EPA proposing in today's notice?

    On December 2, 2010, SC DHEC submitted a proposed revision to EPA 
for approval into the South Carolina SIP to adopt Federal requirements 
for NSR permitting. The December 2, 2010, submittal addresses PSD and 
NNSR requirements related to the implementation of the 2006 
PM<INF>2.5</INF> NAAQS as well as adding a provision of the PSD 
NO<INF>X</INF> as a precursor requirement established in the Phase II 
Rule. Pursuant to section 110 of the CAA, EPA is proposing to approve 
these changes into the South Carolina SIP.
    South Carolina's December 2, 2010, SIP revision was submitted as a 
draft SIP revision and is not yet state-effective. Therefore, South 
Carolina requested that EPA ``parallel process'' the SIP revision.\1\ 
Under this procedure, the EPA Regional Office works closely with the 
state while developing new or revised regulations. Generally, the state 
submits a copy of the proposed regulation or other revisions to EPA 
before conducting its public hearing. EPA reviews this proposed state 
action and prepares a notice of proposed rulemaking. EPA publishes this 
notice of proposed rulemaking in the Federal Register and solicits 
public comment in approximately the same time frame during which the 
state is holding its public hearing. The state and EPA thus provide for 
public comment periods on both the State and the Federal actions in 
parallel.
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    \1\ While the transmittal letter for South Carolina's submission 
is dated October 20, 2010, EPA did not officially receive South 
Carolina's request for parallel processing until December 2, 2010.
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    After South Carolina submits the formal state-effective SIP 
revision request (including a response to all public comments raised 
during the state's public participation process), EPA will prepare a 
final rulemaking notice for the SIP revision. If changes are made to 
the SIP revision after EPA's notice of proposed rulemaking, such 
changes must be acknowledged in EPA's final rulemaking action. If the 
changes are significant, then EPA may be obligated to re-propose the 
action. In addition, if the changes render the SIP revision not 
approvable, EPA's re-proposal of the action would be a disapproval of 
the revision.

II. What is the background for the action proposed by EPA in today's 
notice regarding NSR permitting requirements for the PM<INF>2.5</INF> 
NAAQS?

    Today's proposed action to revise the South Carolina SIP relates to 
EPA's ``Implementation of the New Source Review (NSR) Program for 
Particulate Matter Less than 2.5 Micrometers (PM<INF>2.5</INF>),'' 
Final Rule, 73 FR 28321 (May 16, 2008) (the ``NSR PM<INF>2.5</INF> 
Rule''). In the NSR PM<INF>2.5</INF> Rule, EPA finalized regulations to 
implement the NSR program for the PM<INF>2.5</INF> NAAQS. As a result 
of EPA's final NSR PM<INF>2.5</INF> Rule, states are required to 
provide SIP submissions no later than May 16, 2011, to address these 
requirements for both the PSD and NNSR programs. South Carolina's 
December 2, 2010, proposed SIP revision addresses the PSD and NNSR 
requirements for the PM<INF>2.5</INF> NAAQS. More detail on the NSR 
PM<INF>2.5</INF> Rule can be found in EPA's May 16, 2008, final rule 
and is summarized below.

[[Page 13964]]

A. Fine Particulate Matter and the NAAQS

    Fine particles in the atmosphere are made up of a complex mixture 
of components. Common constituents include sulfate (SO<INF>4</INF>); 
nitrate (NO<INF>3</INF>); ammonium; elemental carbon; a great variety 
of organic compounds; and inorganic material (including metals, dust, 
sea salt, and other trace elements) generally referred to as 
``crustal'' material, although it may contain material from other 
sources. Airborne particulate matter (PM) with a nominal aerodynamic 
diameter of 2.5 micrometers or less (a micrometer is one-millionth of a 
meter, and 2.5 micrometers is less than one-seventh the average width 
of a human hair) are considered to be ``fine particles'' and are also 
known as PM<INF>2.5</INF>. ``Primary'' particles are emitted directly 
into the air as a solid or liquid particle (e.g., elemental carbon from 
diesel engines or fire activities, or condensable organic particles 
from gasoline engines). ``Secondary'' particles (e.g., sulfate and 
nitrate) form in the atmosphere as a result of various chemical 
reactions.
    The health effects associated with exposure to PM<INF>2.5</INF> 
include potential aggravation of respiratory and cardiovascular disease 
(i.e., lung disease, decreased lung function asthma attacks and certain 
cardiovascular issues). Epidemiological studies have indicated a 
correlation between elevated PM<INF>2.5</INF> levels and premature 
mortality. Groups considered especially sensitive to PM<INF>2.5</INF> 
exposure include older adults, children, and individuals with heart and 
lung diseases. For more details regarding health effects and 
PM<INF>2.5</INF> see EPA's Web site at http://www.epa.gov/oar/particlepollution/ (see heading ``Health and Welfare'').
    On July 18, 1997, EPA revised the NAAQS for PM to add new standards 
for fine particles, using PM<INF>2.5</INF> as the indicator. 
Previously, EPA used PM<INF>10</INF> (inhalable particles smaller than 
or equal to 10 micrometers in diameter) as the indicator for the PM 
NAAQS. EPA established health-based (primary) annual and 24-hour 
standards for PM<INF>2.5</INF>, setting an annual standard at a level 
of 15 micrograms per cubic meter ([mu]g/m\3\) and a 24-hour standard at 
a level of 65 [mu]g/m\3\. 62 FR 38652. At the time the 1997 primary 
standards were established, EPA also established welfare-based 
(secondary) standards identical to the primary standards. The secondary 
standards are designed to protect against major environmental effects 
of PM<INF>2.5,</INF> such as visibility impairment, soiling, and 
materials damage. On October 17, 2006, EPA revised the primary and 
secondary NAAQS for PM<INF>2.5</INF>. In that rulemaking, EPA reduced 
the 24-hour NAAQS for PM<INF>2.5</INF> to 35 [mu]g/m\3\ and retained 
the existing annual PM<INF>2.5</INF> NAAQS of 15 [mu]g/m\3\. 71 FR 
61236.

B. What is the NSR program?

    The CAA NSR program is a preconstruction review and permitting 
program applicable to certain new and modified stationary sources of 
air pollutants regulated under the CAA. The program includes a 
combination of air quality planning and air pollution control 
technology requirements. The CAA NSR program is composed of three 
separate programs: PSD, NNSR, and Minor NSR. PSD is established in Part 
C of title I of the CAA and applies in areas that meet the NAAQS 
``attainment areas'' as well as areas where there is insufficient 
information to determine if the area meets the NAAQS-- ``unclassifiable 
areas.'' The NNSR program is established in Part D of title I of the 
CAA and applies in areas that are not in attainment of the NAAQS-- 
``nonattainment areas.'' The Minor NSR program addresses construction 
or modification activities that do not quality as ``major'' and applies 
regardless of the designation of the area in which a source is located. 
Together, these programs are referred to as NSR programs. EPA 
regulations governing the implementation of these programs are 
contained in 40 Code of Federal Regulations (CFR) Parts 51.165, 51.166, 
52.21, 52.24, and part 51, Appendix S.
    Section 109 of the CAA requires EPA to promulgate a primary NAAQS 
to protect public health and a secondary NAAQS to protect public 
welfare. Once EPA sets those standards, states must develop, adopt, and 
submit a SIP to EPA for approval that includes emission limitations and 
other control measures to attain and maintain the NAAQS. See CAA Sec.  
110. Each SIP is also required to include a preconstruction review 
program for the construction and modification of any stationary source 
of air pollution to assure the maintenance of the NAAQS. The December 
2, 2010, SIP submittal revises South Carolina's PSD and NNSR programs.

C. Implementation of NSR Requirements for PM2.5

    After EPA promulgated the NAAQS for PM<INF>2.5</INF> in 1997, the 
Agency issued a guidance document entitled ``Interim Implementation of 
New Source Review Requirements for PM<INF>2.5</INF>.'' John S. Seitz, 
EPA, October 23, 1997 (the ``Seitz memo''). The Seitz memo was designed 
to help states implement NSR requirements pertaining to the new 
PM<INF>2.5</INF> NAAQS in light of technical difficulties posed by 
PM<INF>2.5</INF> at that time. Specifically, the Seitz memo stated: 
``PM-10 may properly be used as a surrogate for PM-2.5 in meeting NSR 
requirements until these difficulties are resolved.''
    EPA also issued a guidance document entitled ``Implementation of 
New Source Review Requirements in PM-2.5 Nonattainment Areas'' (the 
``2005 PM<INF>2.5</INF> Nonattainment NSR Guidance''), on April 5, 
2005, the date that EPA's PM<INF>2.5</INF> nonattainment area 
designations became effective for the 1997 NAAQS. This memorandum 
provided guidance on the implementation of the nonattainment major NSR 
provisions in PM<INF>2.5</INF> nonattainment areas in the interim 
period between the effective date of the PM<INF>2.5</INF> nonattainment 
area designations (April 5, 2005) and EPA's promulgation of final 
PM<INF>2.5</INF> NNSR regulations. Besides re-affirming the 
continuation of the PM<INF>10</INF> Surrogate Policy for 
PM<INF>2.5</INF> attainment areas set forth in the Seitz memo, the 2005 
PM<INF>2.5</INF> NNSR Guidance recommended that until EPA promulgated 
the PM<INF>2.5</INF> major NSR regulations, ``States should use a 
PM<INF>10</INF> nonattainment major NSR program as a surrogate to 
address the requirements of nonattainment major NSR for the 
PM<INF>2.5</INF> NAAQS.''
    On May 16, 2008, EPA finalized a rule to implement the 1997 
PM<INF>2.5</INF> NAAQS, including changes to the NSR program. 73 FR 
28321. The 2008 NSR PM<INF>2.5</INF> Rule revised the NSR program 
requirements to establish the framework for implementing 
preconstruction permit review for the PM<INF>2.5</INF> NAAQS in both 
attainment and nonattainment areas. The 2008 NSR PM<INF>2.5</INF> Rule 
requires that major stationary sources seeking permits must begin 
directly satisfying the PM<INF>2.5</INF> requirements, as of the 
effective date of the rule, rather than relying on PM<INF>10</INF> as a 
surrogate, with two exceptions. The first exception is a 
``grandfathering'' provision in the Federal PSD program at 40 CFR 
52.21(i)(1)(xi). This grandfathering provision applied to sources that 
had applied for, but had not yet received, a final and effective PSD 
permit before the July 15, 2008, effective date of the May 2008 final 
rule. The second exception was that states with SIP-approved PSD 
programs could continue to implement the Seitz Memo's PM<INF>10</INF> 
Surrogate Policy for up to three years (until May 2011) or until the 
individual revised state PSD programs for PM<INF>2.5</INF> are approved 
by EPA, whichever comes first. For additional

[[Page 13965]]

information on the NSR PM<INF>2.5</INF> Rule, see 73 FR 28321.\2\
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    \2\ Additional information on this issue can also be found in an 
August 12, 2009, final order on a title V petition describing the 
use of PM<INF>10</INF> as a surrogate for PM<INF>2.5</INF>. In the 
Matter of Louisville Gas & Electric Company, Petition No. IV-2008-3, 
Order on Petition (August 12, 2009).
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    On February 11, 2010, EPA proposed to repeal the grandfathering 
provision for PM<INF>2.5</INF> contained in the federal PSD program at 
40 CFR 52.21(i)(1)(xi) and to end early the PM<INF>10</INF> Surrogate 
Policy applicable in states that have a SIP-approved PSD program. 75 FR 
6827. In support of this proposal, EPA explained that the 
PM<INF>2.5</INF> implementation issues that led to the adoption of the 
PM<INF>10</INF> Surrogate Policy in 1997 have been largely resolved to 
a degree sufficient for sources and permitting authorities to conduct 
meaningful permit-related PM<INF>2.5</INF> analyses. EPA has not yet 
taken final action on this proposal. Though EPA has not finalized a 
repeal of the PM<INF>2.5</INF> grandfathering provision at 40 CFR 
52.21(i)(1)(xi), South Carolina elected not to include this provision 
in its SIP submittal.
    The NSR PM<INF>2.5</INF> Rule also established the following NSR 
requirements to implement the PM<INF>2.5</INF> NAAQS: (1) Require NSR 
permits to address directly emitted PM<INF>2.5</INF> and precursor 
pollutants; (2) establish significant emission rates for direct 
PM<INF>2.5</INF> and precursor pollutants (including sulfur dioxide 
(SO<INF>2</INF>) and NO<INF>X</INF>); (3) establish PM<INF>2.5</INF> 
emission offsets; and (4) require states to account for gases that 
condense to form particles (``condensables'') in PM<INF>2.5</INF> 
emission limits. In addition, the NSR PM<INF>2.5</INF> Rule gives 
states the option of allowing interpollutant trading for the purpose of 
offsets under the PM<INF>2.5</INF> NNSR program. South Carolina's 
December 2, 2010, proposed submittal addresses the PSD and NNSR 
requirements related to EPA's May 16, 2008, NSR PM<INF>2.5</INF> Rule.

III. What is the background for the action proposed by EPA in today's 
notice regarding the Phase II Rule for NO<INF>X</INF> as an ozone 
precursor?

    Today's proposed action on the South Carolina SIP also relates to 
EPA's Phase II Rule. 70 FR 71612 (November 29, 2005). In the Phase II 
Rule, EPA finalized regulations to address permit requirements for the 
1997 8-hour ozone NAAQS to implement the NSR program by specifically 
identifying NO<INF>X</INF> as an ozone precursor.
    On July 18, 1997, EPA promulgated a revised 8-hour ozone NAAQS of 
0.08 parts per million--also referred to as the 1997 8-hour ozone 
NAAQS. On April 30, 2004, EPA designated areas as attainment, 
nonattainment and unclassifiable for the 1997 8-hour ozone NAAQS. As 
part of the 2004 designations, EPA also promulgated an implementation 
rule for the 1997 8-hour ozone NAAQS in two phases. Phase I of EPA's 
1997 8-hour ozone implementation rule (Phase I Rule), published on 
April 30, 2004, effective on June 15, 2004, provided the implementation 
requirements for designating areas under subpart 1 and subpart 2 of the 
CAA (69 FR 23951).
    On November 29, 2005, EPA promulgated the second phase for 
implementation provisions related to the 1997 8-hour ozone NAAQS--also 
known as the Phase II Rule (70 FR 71612). The Phase II Rule addressed 
control and planning requirements as they applied to areas designated 
nonattainment for the 1997 8-hour ozone NAAQS such as reasonably 
available control technology, reasonably available control measures, 
reasonable further progress, modeling and attainment demonstrations and 
NSR, and the impact to reformulated gas for the 1997 8-hour ozone NAAQS 
transition. The Phase II Rule requirements include, among other 
changes, a provision stating that NO<INF>X</INF> is an ozone precursor. 
70 FR 71612, 71679. In the Phase II Rule, EPA stated as follows:

    ``The EPA has recognized NO<INF>X</INF> as an ozone precursor in 
several national rules because of its contribution to ozone 
transport and the ozone nonattainment problem. The EPA's recognition 
of NO<INF>X</INF> as an ozone precursor is supported by scientific 
studies, which have long recognized the role of NO<INF>X</INF> in 
ozone formation and transport. Such formation and transport is not 
limited to nonattainment areas. Therefore, we believe NO<INF>X</INF> 
should be treated consistently as an ozone precursor in both our PSD 
and nonattainment NSR regulations. For these reasons, we have 
promulgated final regulations providing that NO<INF>X</INF> is an 
ozone precursor in attainment areas.''

Specific to this rulemaking, the Phase II Rule made changes to federal 
regulations 40 CFR 51.165 and 51.166 (which governs the NNSR and PSD 
permitting programs respectively).

    Pursuant to these requirements, states were required to submit SIP 
revisions adopting the federal requirements of the Phase II Rule (at 40 
CFR 51.165 and 51.166) into their SIP no later than June 15, 2007. On 
July 1, 2005, South Carolina submitted a SIP revision to adopt the PSD 
and NNSR provisions amended in the 2002 NSR Reform rules.\3\ The SIP 
revision became state-effective on June 24, 2005, and adopted PSD and 
applicable NNSR provisions at 40 CFR 51.165 and 51.166, respectively. 
Also in the July 1, 2005 submittal, South Carolina recognized 
NO<INF>X</INF> as an ozone precursor for NSR permitting purposes by 
adopting provisions into its SIP. At the time of South Carolina's NSR 
Reform SIP submittal, the Phase II Rule had not been finalized by EPA. 
However, the South Carolina NSR program had recognized NO<INF>X</INF> 
emissions as an ozone precursor in their PSD permitting practice. EPA 
took final action to approve South Carolina's NSR Reform SIP revision 
as well as NO<INF>X</INF> as a precursor provisions into the South 
Carolina SIP on June 2, 2008. 73 FR 31368. The December 2, 2010, 
proposed SIP revision (the subject of this action), incorporates a 
NO<INF>X</INF> as ozone precursor PSD requirement that was not included 
in the South Carolina's July 1, 2005, SIP submittal to be consistent 
with Federal regulations for NSR permitting purposes. Together, South 
Carolina's July 1, 2005 (73 FR 31368) and December 2, 2010, SIP 
revisions incorporate the Phase II Rule permitting requirements 
pertaining to NO<INF>X</INF> as an ozone precursor into the South 
Carolina SIP.
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    \3\ On December 31, 2002 (67 FR 80186), EPA published final rule 
changes to 40 CFR parts 51 and 52, regarding the CAA's PSD and NNSR 
programs. On November 7, 2003 (68 FR 63021), EPA published a notice 
of final action on the reconsideration of the December 31, 2002, 
final rule changes. The December 31, 2002, and the November 7, 2003, 
final actions are collectively referred to as the ``2002 NSR Reform 
Rules.''
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IV. What is EPA's analysis of South Carolina's SIP revisions?

    South Carolina currently has a SIP-approved NSR program for new and 
modified stationary sources. South Carolina's Regulation 61-62.5, 
Standard Number 7, contains the PSD preconstruction review program and 
Regulation 61-62.5, Standard Number 7.1 contains the permitting 
requirements for major sources in or impacting nonattainment areas 
(NNSR program). Today, EPA is proposing to approve changes to South 
Carolina's Regulation 61-62.5 to update South Carolina's existing NSR 
program to be consistent with current federal NSR regulations, 
including adopting regulations amended in the NSR PM<INF>2.5</INF> Rule 
and the Phase II Rule (at 40 CFR 51.165 and 51.166). More detail is 
provided below regarding EPA's analysis of the changes to South 
Carolina's SIP as provided in the December 2, 2010, SIP revision.

A. EPA's Analysis of South Carolina's NSR Rule Revision To Adopt the 
NSR PM2.5 Requirements

    South Carolina's Regulation 61-62.5, Standards Number 7 and 7.1 
adopt the

[[Page 13966]]

provisions at 40 CFR 51.165 and 51.166, respectively, as amended by the 
promulgation of the NSR PM<INF>2.5</INF> Rule for PSD and NNSR. 
Specifically, South Carolina's December 2, 2010, proposed SIP revision 
addresses the following NSR PM<INF>2.5</INF> provisions: (1) 
Requirement for NSR permits to address directly emitted 
PM<INF>2.5</INF> and precursor pollutants; (2) significant emission 
rates for direct PM<INF>2.5</INF> and precursor pollutants 
(SO<INF>2</INF> and NO<INF>X</INF>); and (3) requirement of states to 
address condensable PM in establishing enforceable emission limits for 
PM<INF>10</INF> or PM<INF>2.5</INF>. In light of EPA's February 11, 
2010, proposed rulemaking to repeal the PM<INF>10</INF> 
``grandfathering'' provision, as noted in Section II.C above, South 
Carolina's December 2, 2010, SIP revision does not address 40 CFR 
52.21(i)(1)(ix) promulgated in the NSR PM<INF>2.5</INF> Rule. Even if 
EPA's proposed repeal of the PM<INF>10</INF> ``grandfathering'' 
provision is not finalized before today's action, South Carolina's SIP 
revision is approvable because it is at least as stringent as current 
federal law, and is consistent with section 110 of the CAA.
    In addition, South Carolina's SIP revision does not incorporate 
optional provisions set forth at 40 CFR 51.165(a)(11) authorizing the 
use of interpollutant trading for the purpose of offsets under the 
PM<INF>2.5</INF> NNSR program. Because the NSR PM<INF>2.5</INF> Rule 
gives states discretion regarding whether to include interpollutant 
trading provisions in their PM<INF>2.5</INF> NNSR programs, South 
Carolina's decision not to adopt such provisions does not affect the 
approvability of South Carolina's December 2, 2010, draft SIP revision. 
EPA has preliminarily determined that South Carolina's December 2, 
2010, draft SIP revision is consistent with the NSR PM<INF>2.5</INF> 
Rule for PSD and NNSR and with section 110 of the CAA. See, e.g., NSR 
PM<INF>2.5</INF> Rule, 75 FR 31514.

B. EPA's Analysis of South Carolina's NSR Rule Revision To Adopt the 
Phase II Rule Requirement for NO<INF>X</INF> as an Ozone Precursor

    South Carolina's December 2, 2010, proposed SIP revision also 
updates its PSD permitting regulations at 61-62-5 Standard No. 7. The 
submittal adds the requirement related to NO<INF>X</INF> as an ozone 
precursor provision as amended in the Phase II Rule. Specifically, the 
change addresses the inclusion of ``nitrogen oxides'' in the footnote 
at 61-62.5(i)(5)(i) (as amended at 40 CFR 51.166(i)(5)(i)(e)) to 
recognize NO<INF>X</INF> as an ozone precursor. The provision at 40 CFR 
51.166(i)(5)(i)(e) requires sources with a net increase of 100 tons per 
year or more of NO<INF>X</INF> to perform an ambient impact analysis.
    As mentioned above in Section III, South Carolina submitted a SIP 
revision on July 1, 2005, to update its PSD and NNSR Regulations (at 
Regulation 61-62.5, Standards No. 7 and 7.1) to adopt the 2002 NSR 
Reform permitting requirements as well as incorporate provisions 
recognizing NO<INF>X</INF> as an ozone precursor. The SIP revision 
became state-effective on June 24, 2005 and EPA took final action to 
approve the SIP revision on June 2, 2008. 73 FR 31368. Together, South 
Carolina's July 1, 2005, SIP revision (73 FR 31368, June 2, 2008) and 
the December 2, 2010, SIP revision (the subject of today's action), 
incorporate into South Carolina's SIP (at Regulation 61-62.5, Standards 
No. 7 and 7.1) all of the requirements for permitting pertaining to 
NO<INF>X</INF> as an ozone precursor as required by the Phase II Rule, 
70 FR 71612 (November 29, 2005). EPA is proposing to determine that 
South Carolina's December 2, 2010, SIP revision is consistent with the 
federal requirements of the Phase II Rule and the CAA.

V. Proposed Action

    EPA is proposing to approve South Carolina's December 2, 2010, SIP 
revision adopting federal regulations amended in the NSR 
PM<INF>2.5</INF> Rule and the Phase II Rule (recognizing NO<INF>X</INF> 
as an ozone precursor) into the South Carolina SIP. EPA has made the 
preliminary determination that this SIP revision is approvable because 
it is in accordance with the CAA and EPA regulations regarding NSR 
permitting.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
proposed action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this proposed action:
    <bullet> Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
    <bullet> Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
    <bullet> 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.);
    <bullet> 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);
    <bullet> Does not have Federalism implications as specified in 
Executive Order 13132 (64 F43255, August 10, 1999);
    <bullet> Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
    <bullet> Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
    <bullet> Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
    <bullet> Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this proposed rule does not have tribal implications 
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and 
recordkeeping requirements.

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

    Dated: March 7, 2011
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 2011-6009 Filed 3-14-11; 8:45 am]
BILLING CODE 6560-50-P


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