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[Federal Register Volume 81, Number 248 (Tuesday, December 27, 2016)]
[Proposed Rules]
[Pages 95074-95078]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31028]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0726; FRL-9957-12-Region 9]

Approval and Limited Approval and Limited Disapproval of Air 
Quality Implementation Plans; California; Mendocino County Air Quality 
Management 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 four permitting rules submitted as a revision to the Mendocino 
County Air Quality Management District (``MCAQMD'' or ``the 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 
one rule and we are proposing to approve the remaining three permitting 
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 MCAQMD 
permitting rules and to set the stage for remedying certain 
deficiencies in these rules. If finalized as proposed, the limited 
disapproval actions would trigger an obligation for EPA to promulgate a 
Federal Implementation Plan (FIP) 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 January 26, 2017.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R09-OAR-2016-0726 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

[[Page 95075]]

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 Submittal
    A. Which rules did the State submit?
    B. What are the existing MCAQMD 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 Submittal

A. Which rules did the State submit?

    On November 15, 2016, California submitted amended regulations to 
EPA for approval as revisions to the MCAQMD 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. This SIP revision 
submittal, referred to herein as the ``SIP submittal'' or ``submitted 
rules,'' represents a significant update to the District's 
preconstruction review and permitting program and is 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 the 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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1-130...................................  Definitions.....................            9/20/16           11/15/16
1-200...................................  Permit Requirements.............            9/20/16           11/15/16
1-220...................................  New Source Review Standards                 9/20/16           11/15/16
                                           (Including PSD Evaluations).
1-230...................................  Action on Applications..........            9/20/16           11/15/16
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    The rule submittals were determined to meet the completeness 
criteria 40 CFR part 51, appendix V on December 5, 2016. 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 
information on each of the submitted rules.

B. What are the existing MCAQMD 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 MCAQMD. 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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                                                                                                Federal Register
                Rule No.                             Rule title             SIP Approval date       citation
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130.....................................  Definitions.....................             5/6/11       76 FR 26192.
200.....................................  Permit Requirements.............            4/12/89       54 FR 14650.
220.....................................  New Source Review Standards.....            7/31/85       50 FR 30942.
230.....................................  Action on Applications..........            7/31/85       50 FR 30942.
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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 the 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 MCAQMD 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, sections 
51.160 through 51.164 and 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 Rule 220 (New Source Review); full approval of 
Rules 130 (Definitions), 200 (Permit Requirements), and 230 (Action on 
Applications).
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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 MCAQMD 
has provided sufficient evidence of public notice and opportunity for 
comment and public

[[Page 95076]]

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 Rule 220. 
Below, we discuss generally our evaluation of MCAQMD'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'' or ``general'' 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 Standards, and 230--Action on Applications, contain the 
requirements for review and permitting of individual minor stationary 
sources in MCAQMD. 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.
2. Prevention of Significant Deterioration
    Part C of title I of the Act contains the provisions for the 
prevention of significant deterioration 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. MCAQMD 
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 MCAQMD. The rules satisfy most 
of the statutory and regulatory requirements for PSD permit programs, 
but Rule 220 also contains some minor deficiencies that form the basis 
for our proposed limited disapproval, as discussed below.
    First, 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.
    Second, Rule 220 does not contain any provisions to satisfy the 
requirements of 40 CFR 51.166(r)(2) that require permit programs to 
include specific language providing 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)(2).
    Compared to the existing SIP approved PSD program in Rule 220 
(approved July 31, 1985), however, submitted Rule 220 represents 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 
Rule 220 strengthens 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 MCAQMD is not designated nonattainment for any NAAQS. 
Because the MCAQMD 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].''
    MCAQMD 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 MCAQMD portion of the California SIP for the purpose of 
continued attainment or maintenance of the NAAQS. Our approval of the 
MCAQMD SIP submittal would strengthen the applicable SIP. Therefore, we 
find that this SIP revision represents a strengthening of MCAQMD'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 MCAQMD, 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

[[Page 95077]]

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, 
Rule 220 contains certain deficiencies that prevent us from proposing a 
full approval and we are proposing a limited approval and limited 
disapproval of this rule. 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 MCAQMD. We are proposing a full approval of Rules 130, 200, 
and 230.
    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 
Rule 220, and approval of the remaining revisions to the MCAQMD portion 
of the California SIP that governs the issuance of permits for 
stationary sources under the jurisdiction of MCAQMD, 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 MCAQMD 
rules listed in Table 1, above, as a revision to the MCAQMD portion of 
the California SIP.
    EPA is proposing this action because, although we find that the new 
and amended rules meet most of the 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 Rule 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 MCAQMD 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 110(a)(2) ``Infrastructure'' SIP Submittal for 
multiple NAAQS, including the 2008 ozone, 1997 and 2006 
PM2.5 standards with respect to Mendocino County AQMD 
because it did not include requirements for a baseline date for PSD 
increments for PM2.5. If we finalize our proposed action, 
this SIP deficiency pertaining to the PSD-related requirements of 
section 110(a)(2)(C), (D)(i)(II) and (J) will be remedied, resulting in 
fully approved infrastructure SIPs for those NAAQS with respect to 
Mendocino County AQMD.
    If finalized as proposed, the limited disapproval of Rule 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 both the proposed full 
approval and the proposed limited approval and limited disapproval for 
the next 30 days.

IV. Incorporation by Reference

    In this rulemaking, 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 MCAQMD rules as described in Table 1 of 
this notice. The EPA has made, and will continue to make, this document 
available 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.

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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: December 9, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016-31028 Filed 12-23-16; 8:45 am]
BILLING CODE 6560-50-P
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