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[Federal Register Volume 81, Number 97 (Thursday, May 19, 2016)]
[Proposed Rules]
[Pages 31567-31570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-11621]

[[Page 31567]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0240; FRL-9946-45-Region 9]

Approval and Limited Approval and Limited Disapproval of Air 
Quality Implementation Plans; California; Northern Sonoma County Air 
Pollution Control District; Stationary Source Permits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing action 
on five permitting rules submitted as a revision to the Northern Sonoma 
County Air Pollution Control District (NSCAPCD or District) portion of 
the applicable state implementation plan (SIP) for the State of 
California pursuant to requirements under the Clean Air Act (CAA or 
Act). We are proposing a limited approval and limited disapproval of 
two rules; we are proposing to approve the remaining three permitting 
rules; and we are proposing to repeal three rules. The submitted 
revisions include amended rules governing the issuance of permits for 
stationary sources, including review and permitting of minor sources, 
and major sources and major modifications under part C of title I of 
the Act. The intended effect of these proposed actions is to update the 
applicable SIP with current NSCAPCD permitting rules and to set the 
stage for remedying certain deficiencies in these rules; this proposal 
also seeks to remedy specific deficiencies identified in our recent 
action on the California Infrastructure SIP. If finalized as proposed, 
the limited disapproval actions would trigger an obligation for EPA to 
promulgate a Federal Implementation Plan for the specific New Source 
Review (NSR) program deficiencies unless California submits and we 
approve SIP revisions that correct the deficiencies within two years of 
the final action.

DATES:  Any comments must arrive by June 20, 2016.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R09-OAR-2016-0240 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 edited or removed 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, by phone: (415) 972-
3534 or by email at yannayon.laura@epa.gov.

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

Table of Contents

I. The State's Submittals
    A. Which rules did the State submit?
    B. What are the existing NSCAPCD rules governing stationary 
source permits in the California SIP?
    C. What is the purpose of this proposed rule?
II. EPA's Evaluation
    A. How is EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    1. Minor Source Permits
    2. Prevention of Significant Deterioration
    3. Nonattainment New Source Review
    4. Section 110(l) of the Act
    5. Conclusion
III. Proposed Action and Public Comment
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. The State's Submittals

A. Which rules did the State submit?

    On October 16, 1985 and December 11, 2014, California submitted 
amended regulations to EPA for approval as revisions to the NSCAPCD 
portion of the California SIP under the Clean Air Act. Collectively, 
the submitted regulations comprise the District's current program for 
preconstruction review and permitting of new or modified stationary 
sources. These SIP revision submittals, referred to herein as the ``SIP 
submittal'' or ``submitted rules,'' represent a significant update to 
the District's preconstruction review and permitting program and are 
intended to satisfy the requirements under part C (prevention of 
significant deterioration) (PSD) of title I of the Act as well as the 
general preconstruction review requirements for minor sources under 
section 110(a)(2)(C) of the Act (minor NSR).
    Table 1 lists the rules addressed by this proposal with the dates 
that they were adopted by the District and submitted to EPA by the 
California Air Resources Board, which is the governor's designee for 
California SIP submittals.

                                          Table 1--Submitted NSR Rules
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                   Rule No.                                Rule title                 Amended        Submitted
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130...........................................  Definitions.....................        11/14/14        12/11/14
200...........................................  Permit Requirements.............        11/14/14        12/11/14
220...........................................  New Source Review...............        11/14/14        12/11/14
230...........................................  Action on Applications..........        11/14/14        12/11/14
240...........................................  Permit to Operate...............         2/22/84        10/16/85
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    The submittal of Rule 240 was deemed complete by operation of law 
six months after the date of submittal. 40 CFR part 51, appendix V. The 
remaining rule submittals were determined to meet the completeness 
criteria 40 CFR part 51, appendix V on February 20, 2015. A 
completeness finding must be made before formal EPA review. Each of 
these submittals includes evidence of public notice and adoption of the 
regulation. Our technical support document (TSD) provides additional 
background

[[Page 31568]]

information on each of the submitted rules.

B. What are the existing NSCAPCD rules governing stationary source 
permits in the California SIP?

    Table 2 lists the rules that make up the existing SIP-approved 
rules for new or modified stationary sources in NSCAPCD. All of these 
rules would be replaced or deleted from the SIP if EPA takes final 
action on the proposed approval of the submitted set of rules listed in 
Table 1.

                                           Table 2--Existing SIP Rules
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                                                                     SIP Approval
              Rule No.                         Rule title                date         Federal Register citation
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10..................................  Permits Required............         9/22/72  37 FR 19812.
12..................................  Transfer....................         9/22/72  37 FR 19812.
18..................................  Conditional Approval........         9/22/72  37 FR 19812.
130.................................  Definitions.................          5/6/11  76 FR 26192.
200.................................  Permitting Requirements.....         7/31/85  50 FR 30943.
220a................................  New Source Review...........         7/31/85  50 FR 30943.
220b................................  New Source Review...........         7/31/85  50 FR 30943.
220c................................  New Source Review...........         7/31/85  50 FR 30943.
230.................................  Action on Applications......         7/31/85  50 FR 30943.
240.................................  Permit to Operate...........        10/31/80  45 FR 72148.
240e................................  Mandatory Monitoring                12/21/78  43 FR 59489.
                                       Requirements.
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C. What is the purpose of this proposed rule?

    The purpose of this proposed rule is to present our evaluation 
under the CAA and EPA's regulations of the submitted rules adopted by 
the District as identified in Table 1. We provide our reasoning in 
general terms below but provide more detailed analysis in our TSD, 
which is available in the docket for this proposed rulemaking.

II. EPA's Evaluation

A. How is EPA evaluating the rules?

    EPA has reviewed the rules submitted by NSCAPCD governing PSD and 
minor NSR for stationary sources for compliance with the CAA's general 
requirements for SIPs in CAA section 110(a)(2), EPA's regulations for 
stationary source permitting programs in 40 CFR part 51, Sec.  51.160 
through Sec.  51.164 and Sec.  51.166, and the CAA requirements for SIP 
revisions in CAA section 110(l).\1\ As described below, EPA is 
proposing a combination of actions consisting of limited approval and 
limited disapproval of Rules 130 (Definitions) and 220 (New Source 
Review); full approval of Rules 200 (Permit Requirements), 230 (Action 
on Applications), and 240 (Permit to Operate); and replacement of Rules 
10 (Permits Required), 12 (Transfer) and 18 (Conditional Approval).
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    \1\ CAA section 110(l) requires SIP revisions to be subject to 
reasonable notice and public hearing prior to adoption and submittal 
by States to EPA and prohibits EPA from approving any SIP revision 
that would interfere with any applicable requirement concerning 
attainment and reasonable further progress, or any other applicable 
requirement of the CAA.
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B. Do the rules meet the evaluation criteria?

    With respect to procedures, CAA sections 110(a) and 110(l) require 
that revisions to a SIP be adopted by the State after reasonable notice 
and public hearing. Based on our review of the public process 
documentation included in the various submittals, we find that NSCAPCD 
has provided sufficient evidence of public notice and opportunity for 
comment and public hearings prior to adoption and submittal of these 
rules to EPA.
    With respect to substantive requirements, we have evaluated each 
submitted rule in accordance with the CAA and regulatory requirements 
that apply to: (1) General preconstruction review programs for minor 
sources under section 110(a)(2)(C) of the Act and 40 CFR 51.160-164, 
and (2) PSD permit programs under part C of title I of the Act and 40 
CFR 51.166. For the most part, the submitted rules satisfy the 
applicable requirements for these permit programs and would strengthen 
the applicable SIP by updating the regulations and adding requirements 
to address new or revised PSD permitting requirements promulgated by 
EPA in the last several years; however the submitted rules also contain 
specific deficiencies which prevent full approval of Rules 130 and 220. 
Below, we discuss generally our evaluation of NSCAPCD's submitted rules 
and the deficiencies that are the basis for our proposed action on 
these rules. Our TSD contains a more detailed evaluation and 
recommendations for program improvements.
1. Minor Source Permits
    Section 110(a)(2)(C) of the Act requires that each SIP include a 
program to provide for ``regulation of the modification and 
construction of any stationary source within the areas covered by the 
plan as necessary to assure that national ambient air quality standards 
are achieved, including a permit program as required in parts C and D'' 
of title I of the Act. Thus, in addition to the permit programs 
required in parts C and D of title I of the Act, which apply to new or 
modified ``major'' stationary sources of pollutants, each SIP must 
include a program to provide for the regulation of the construction and 
modification of any stationary source within the areas covered by the 
plan as necessary to assure that the national ambient air quality 
standards (NAAQS) are achieved. These general pre-construction 
requirements are commonly referred to as ``minor NSR'' and are subject 
to EPA's implementing regulations in 40 CFR 51.160-51.164.
    Rules 130--Definitions, 200--Permit Requirements, 220--New Source 
Review, 230--Action on Applications, and 240--Permit to Operate, 
contain the requirements for review and permitting of individual minor 
stationary sources in NSCAPCD. These rules satisfy the statutory and 
regulatory requirements for minor NSR programs. The changes the 
District made to the rules listed above as they pertain to the minor 
source program were largely administrative in nature and provide 
additional clarity to the rules.

[[Page 31569]]

2. Prevention of Significant Deterioration
    Part C of title I of the Act contains the provisions for the 
prevention of significant deterioration (PSD) of air quality in areas 
designated ``attainment'' or ``unclassifiable'' for the NAAQS, 
including preconstruction permit requirements for new major sources or 
major modifications proposing to construct in such areas. EPA's 
regulations for PSD permit programs are found in 40 CFR 51.166. NSCAPCD 
is currently designated as ``attainment'' or ``unclassifiable/
attainment'' for all NAAQS pollutants.
    The submitted rules contain the requirements for review and 
permitting of minor and PSD sources in NSCAPCD. The rules satisfy most 
of the statutory and regulatory requirements for PSD permit programs, 
but Rules 130 and 220 also contain some deficiencies that form the 
basis for our proposed limited disapproval, as discussed below.
    First, 40 CFR 51.161(d) specifies that a public notice must be 
provided for all lead point sources, as defined in 40 CFR 51.100(k). 
The provisions of Rule 220 (b) cross-reference the definition of the 
term Significant in Rule 130 to provide specific public notice emission 
rate thresholds used to determine when public notice is required. Rule 
130 provides thresholds for all NAAQS pollutants except lead. To 
correct this deficiency, the District should add an emission threshold 
for lead by revising the definition of the term ``Significant'' in Rule 
130.
    Second, Rule 220 does not contain any provisions specifying that 
required air quality modeling shall be based on the applicable models, 
databases, and other requirements specified in Part 51 Appendix W, as 
required by 40 CFR 51.160(f) and 51.166(f). Provisions pertaining to 
modeling requirements must also specify the requirements for using any 
alternative models. To correct the deficiency, the District should add 
the required modeling provisions to Rule 220.
    Third, text in Rule 220, Subsection (b)(3) contains a significant 
typo concerning the requirements pertaining to stack height. This 
deficiency may be corrected by adding the missing word ``not''.
    Finally, Rule 230 does not contain any provisions to satisfy the 
requirements of 40 CFR 51.166(r)(1) and (2) which require permit 
programs to include specific language providing that (1) ``. . . 
approval to construct shall not relieve any owner or operator of the 
responsibility to comply fully with applicable provisions of the plan 
and any other requirements under local, State or Federal law'' and (2) 
that if ``. . . a particular source or modification becomes a major 
stationary source or major modification solely by virtue of a 
relaxation in any enforceable limitation which was established after 
August 7, 1980, on the capacity of the source or modification otherwise 
to emit a pollutant, such as a restriction on hours of operation, then 
the requirements . . .'' of the PSD program shall apply to the source 
or modification as though construction had not yet commenced on the 
source or modification. This deficiency can be corrected by adding the 
language found in 40 CFR 51.166(r)(1) and (2).
    Compared to the existing SIP approved PSD program in Rule 220 
(approved July 31, 1985), however, submitted Rules 130 and 220 
represent an overall strengthening of the District's PSD program, in 
large part because the rule includes updated PSD provisions to regulate 
new or modified major stationary sources of PM2.5 emissions, 
which are unregulated under the existing SIP PSD program. Because 
submitted Rules 130 and 220 strengthen the SIP, we are proposing a 
limited approval and limited disapproval based on the deficiencies 
listed above.
3. Nonattainment New Source Review
    The CAA defines ``nonattainment areas'' as air quality planning 
areas that exceed the primary or secondary NAAQS for the given criteria 
pollutant. The NSCAPCD is not designated nonattainment for any NAAQS. 
Because the NSCAPCD is not currently classified nonattainment for any 
NAAQS, we are not evaluating the submitted rules for approval under 40 
CFR 51.165, which contains the requirements for nonattainment NSR 
programs.
4. Section 110(l) of the Act
    Section 110(l) prohibits EPA from approving a revision of a plan if 
the revision would ``interfere with any applicable requirement 
concerning attainment and reasonable further progress . . . or any 
other applicable requirement of [the Act].''
    NSCAPCD is currently designated attainment or unclassifiable/
attainment for all NAAQS pollutants. We are unaware of any reliance by 
the District on the continuation of any aspect of the permit-related 
rules in the NSCAPCD portion of the California SIP for the purpose of 
continued attainment or maintenance of the NAAQS. Our approval of the 
NSCAPCD SIP submittal (and supersession of the existing SIP rules) 
would strengthen the applicable SIP. Therefore we find that this SIP 
revision represents a strengthening of NSCAPCD's minor NSR and PSD 
programs compared to the existing SIP rules that we previously 
approved, and that our approval of the SIP submittal would not 
interfere with any applicable requirement concerning attainment or any 
other applicable requirement of the Act.
    Given all these considerations and in light of the air quality 
improvements in NSCAPCD, we propose that our approval of these updated 
NSR regulations into the California SIP would not interfere with any 
applicable requirement concerning attainment or any other applicable 
requirement of the Act.
5. Conclusion
    For the reasons stated above and explained further in our TSD, we 
find that the submitted rules satisfy most of the applicable CAA and 
regulatory requirements for the District's minor NSR and PSD permit 
programs under CAA section 110(a)(2)(C) and part C of title I of the 
Act. However, Rules 130 and 220 contain certain deficiencies that 
prevent us from proposing a full approval and we are proposing a 
limited approval and limited disapproval of these two rules. We do so 
based on our finding that, while these rules do not meet all of the 
applicable requirements, the rules represent an overall strengthening 
of the SIP by clarifying and enhancing the permitting requirements for 
major and minor stationary sources in NSCAPCD. Finally, we are 
proposing a full approval of Rules 200, 230, and 240, which will 
replace existing SIP Rules 10, 12 and 18. Our TSD, which is available 
in the docket for today's action, contains additional information on 
this rulemaking.

III. Proposed Action and Public Comment

    Pursuant to section 110(k) of the CAA and for the reasons provided 
above, EPA is proposing a limited approval and limited disapproval of 
Rules 130 and 220, and approval of the remaining revisions to the 
NSCAPCD portion of the California SIP that governs the issuance of 
permits for stationary sources under the jurisdiction of NSCAPCD, 
including review and permitting of major sources and major 
modifications under part C of title I of the CAA. Specifically, EPA is 
proposing an action on NSCAPCD rules listed in Table 1, above, as a 
revision to the NSCAPCD portion of the California SIP.
    EPA is proposing this action because, although we find that the new 
and amended rules meet most of the

[[Page 31570]]

applicable requirements for such permit programs and that the SIP 
revisions improve the existing SIP, we have found certain deficiencies 
that prevent full approval of Rules 130 and 220, as explained further 
in this preamble and in the TSD for this rulemaking. The intended 
effect of the proposed approval and limited approval and limited 
disapproval portions of this action is to update the applicable SIP 
with current NSCAPCD permitting regulations \2\ and to set the stage 
for remedying deficiencies in these regulations.
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    \2\ Final approval of the rules in Table 1 would supersede all 
of the rules in the existing California SIP as listed in Table 2.
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    In addition, on April 1, 2016 (81 FR 18766), EPA partially 
disapproved California's Infrastructure SIP Submittal for the 1997 and 
2006 PM2.5 NAAQS with respect to Northern Sonoma County APCD 
because it did not include requirements for a baseline date for PSD 
increments for PM2.5. If we finalize our proposed action, 
this Infrastructure SIP deficiency pertaining to the PSD-related 
requirements of section 110(a)(2)(C), (D)(i)(II) and (J) will be 
remedied, and we will update the approved SIP for California 
accordingly.
    If finalized as proposed, the limited disapproval of Rules 130 and 
220 would trigger an obligation for EPA to promulgate a Federal 
Implementation Plan unless the State of California corrects the 
deficiencies, and EPA approves the related plan revisions, within two 
years of the final action.
    We will accept comments from the public on the proposed limited 
approval and limited disapproval 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 NSCAPCD rules as described in Table 1 of this notice. The 
EPA has made, and will continue to make, this document generally 
electronically through www.regulations.gov and in hard copy at U.S. 
Environmental Protection Agency Region IX (Air-3), 75 Hawthorne Street, 
San Francisco, CA, 94105-3901.

V. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was 
therefore not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA because this action does not impose additional requirements 
beyond those imposed by state law.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not impose any requirements on small entities beyond those 
imposed by state law.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. This action does not impose additional requirements 
beyond those imposed by state law. Accordingly, no additional costs to 
State, local, or tribal governments, or to the private sector, will 
result from this action.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Coordination With Indian Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175, because 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, and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law. Thus, Executive Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not impose additional 
requirements beyond those imposed by state law.

H. Executive Order 13211: Actions That Significantly Affect Energy 
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    Section 12(d) of the NTTAA directs the EPA to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. The EPA 
believes that this action is not subject to the requirements of section 
12(d) of the NTTAA because application of those requirements would be 
inconsistent with the CAA.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Population

    The EPA lacks the discretionary authority to address environmental 
justice in this rulemaking.

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: May 3, 2016.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2016-11621 Filed 5-18-16; 8:45 am]
 BILLING CODE 6560-50-P
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