[Federal Register Volume 75, Number 228 (Monday, November 29, 2010)]
[Proposed Rules]
[Pages 73017-73025]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-29951]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2010-0816-201057; FRL-9233-6]


Approval and Promulgation of Implementation Plans; Georgia: 
Prevention of Significant Deterioration; Greenhouse Gas Tailoring Rule 
and Fine Particulate Matter Revision

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a draft revision to the Georgia 
State Implementation Plan (SIP), submitted by the State of Georgia, 
through the Georgia Department of Natural Resources' Environmental 
Protection Division (EPD), to EPA on September 30, 2010, for parallel 
processing. The proposed revision makes two changes for which EPA is 
proposing approval in today's rulemaking. First, the proposed SIP 
revision modifies Georgia's New Source Review (NSR) Prevention of 
Significant Deterioration (PSD) program. Specifically, the proposed SIP 
revision establishes appropriate emission thresholds for determining 
which new stationary sources and modification projects become subject 
to Georgia's PSD permitting requirements for their greenhouse gas (GHG) 
emissions. Second, the proposed SIP revision incorporates provisions 
for implementing the PSD program for fine particulate matter 
(PM<INF>2.5</INF>). The first component of this proposed SIP revision 
is necessary because without it, on January 2, 2011, PSD requirements 
would apply at the 100 or 250 tons per year (tpy) levels provided under 
the Clean Air Act (CAA or Act), which would overwhelm Georgia's 
permitting

[[Page 73018]]

resources. The second component of this proposed SIP revision 
(addressing the PM<INF>2.5</INF> national ambient air quality standard 
(NAAQS)) is necessary to comply with Federal regulations related to PSD 
permitting. EPA is proposing approval of Georgia's September 30, 2010, 
SIP revision because the Agency has made the preliminary determination 
that this SIP revision is in accordance with the CAA and EPA 
regulations regarding PSD permitting for GHGs and the PM<INF>2.5</INF> 
NAAQS.

DATES: Comments must be received on or before December 29, 2010.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2010-0816 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="abc9cec5c1cac6c2c585c7d2c5c4d9caceebcedbca85ccc4dd">[email protected]</span></a>.
    3. Fax: (404) 562-9019.
    4. Mail: EPA-R04-OAR-2010-0816, 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-
2010-0816.'' EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at http://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://www.regulations.gov or e-mail, information that you consider to be CBI 
or otherwise protected. The http://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://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://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 Georgia 
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#a4c6d6c5c0c8c1dd8ad0d3d1cacec5c8c5e4c1d4c58ac3cbd2"><span class="__cf_email__" data-cfemail="553727343139302c7b2122203b3f343934153025347b323a23">[email protected]</span></a>. For information 
regarding the GHG Tailoring Rule and the PM<INF>2.5</INF> NAAQS PSD 
requirements, contact Ms. Heather Abrams, Air Permits Section, at the 
same address above. Ms. Abrams' telephone number is (404) 562-9185; e-
mail address: <a href="/cdn-cgi/l/email-protection#ddbcbfafbcb0aef3b5b8bca9b5b8af9db8adbcf3bab2ab"><span class="__cf_email__" data-cfemail="2c4d4e5e4d415f0244494d5844495e6c495c4d024b435a">[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 PSD Permitting Requirements for GHG-emitting 
sources?
III. What is the relationship between today's proposed action and 
EPA's proposed GHG SIP Call and GHG FIP?
IV. What is the background for the action proposed by EPA in today's 
Notice regarding the PSD Permitting Requirements for the 
PM<INF>2.5</INF> NAAQS?
V. What is EPA's analysis of Georgia's proposed SIP revision?
VI. Proposed Action
VII. Statutory and Executive Order Reviews

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

    On September 30, 2010,\1\ EPD submitted a draft revision to EPA for 
approval into the Georgia SIP to establish appropriate emission 
thresholds for determining which new or modified stationary sources 
become subject to Georgia's PSD permitting requirements for GHG 
emissions. Final approval of Georgia's September 30, 2010, SIP revision 
will put in place the GHG emission thresholds for PSD applicability set 
forth in EPA's Tailoring Rule, ensuring that smaller GHG sources 
emitting less than these thresholds will not be subject to permitting 
requirements when these requirements begin applying to GHGs on January 
2, 2011. Additionally, Georgia's September 30, 2010, SIP revision 
incorporates Federal requirements into Georgia's SIP for PSD permitting 
related to the PM<INF>2.5</INF> NAAQS. Pursuant to section 110 of the 
CAA, EPA is proposing to approve these changes into the Georgia SIP.
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    \1\ With respect to PM<INF>2.5,</INF> Georgia's September 30, 
2010, SIP revision only addresses PSD requirements. The 
nonattainment NSR provisions for Georgia for the PM<INF>2.5</INF> 
NAAQS are still under development at the State level and are not due 
to EPA until May 16, 2011. Additionally, Georgia's submittal 
contains provisions at 391-3-1-.02(7)(a)(2)(iv)(I) and (II) of 
Georgia's PSD regulations that would render Georgia's regulation or 
a portion thereof automatically invalid in the wake of certain court 
decisions or other events. At this time, EPA is not proposing to 
approve this provision into the Georgia SIP.
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    Because this draft SIP revision is not yet State-effective, Georgia 
requested that EPA ``parallel process'' the SIP revision. 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

[[Page 73019]]

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.
    After Georgia 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 obliged 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.
    In addition to changes to address PSD permitting requirements for 
GHGs and PM<INF>2.5</INF>, Georgia's September 30, 2010, SIP revision 
also includes: (1) A provision that excludes facilities that produce 
ethanol through a natural fermentation process from the definition of 
``chemical process plants'' in the major NSR source permitting program; 
and (2) a provision that incorporates by reference changes pursuant to 
EPA's Fugitive Emissions Rule, 73 FR 77882 (December 19, 2008).\2\ In 
today's proposed rulemaking, EPA is not proposing to take action on 
Georgia's changes to its PSD regulations to exclude facilities that 
produce ethanol through a natural fermentation process from the 
definition of ``chemical process plants'' in the major NSR permitting 
program, nor is EPA proposing to take action on Georgia's changes to 
incorporate the provisions of the Fugitive Emission Rule.
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    \2\ On March 31, 2010, EPA stayed the Fugitive Emissions Rule 
(73 FR 77882) for 18 months to October 3, 2011, to allow the Agency 
time to propose, take comment and issue a final action regarding the 
inclusion of fugitive emissions in NSR applicability determinations. 
Therefore, the 40 CFR part 51 and part 52 administrative regulations 
that were amended by the Fugitive Emissions Rule are stayed through 
October 3, 2011.
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II. What is the background for the action proposed by EPA in today's 
Notice regarding PSD permitting requirements for GHG-emitting sources?

    Today's proposed action on the Georgia SIP primarily relates to 
EPA's ``Prevention of Significant Deterioration and Title V Greenhouse 
Gas Tailoring Rule,'' Final Rule (the Tailoring Rule). 75 FR 31514. In 
the Tailoring Rule, EPA established appropriate GHG emission thresholds 
for determining the applicability of PSD requirements to GHG-emitting 
sources. These applicability thresholds were designed to ensure that 
smaller GHG sources will not be subject to GHG permitting requirements. 
While Georgia already has authority to issue PSD permits governing GHGs 
when PSD requirements begin applying to GHGs on January 2, 2011, 
Georgia needs to amend its SIP to incorporate the Tailoring Rule's 
applicability thresholds. Today's notice announces EPA's proposed 
approval of a revision to Georgia's SIP that would put these 
applicability thresholds in place.\3\
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    \3\ On September 2, 2010, EPA proposed a ``SIP Call'' that would 
require those States with SIPs that do not authorize PSD permitting 
for GHGs to submit a SIP revision providing such authority. 75 FR 
53892. In a companion rulemaking, EPA proposed a Federal 
Implementation Plan (FIP) that would apply in any State that is 
unable to submit the required SIP revision by its deadline. 75 FR 
53883 (September 2, 2010). Because Georgia's SIP already authorizes 
Georgia to regulate GHGs once GHGs become subject to PSD 
requirements on January 2, 2011, Georgia is not subject to the 
proposed SIP Call or FIP.
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A. What are GHGs and their sources?

    A detailed explanation of GHGs, climate change and the impact on 
health, society, and the environment is included in EPA's technical 
support document for EPA's GHG endangerment finding final rule 
(Document ID No. EPA-HQ-OAR-2009-0472-11292 at http://www.regulations.gov). The endangerment finding rulemaking is discussed 
later in this rulemaking. A summary of the nature and sources of GHGs 
is provided below.
    GHGs trap the Earth's heat that would otherwise escape from the 
atmosphere into space and form the greenhouse effect that helps keep 
the Earth warm enough for life. GHGs are naturally present in the 
atmosphere and are also emitted by human activities. Human activities 
are intensifying the naturally occurring greenhouse effect by 
increasing the amount of GHGs in the atmosphere, which is changing the 
climate in a way that endangers human health, society, and the natural 
environment.
    Some GHGs, such as carbon dioxide (CO<INF>2</INF>), are emitted to 
the atmosphere through natural processes as well as human activities. 
Other gases, such as fluorinated gases, are created and emitted solely 
through human activities. The well-mixed GHGs of concern directly 
emitted by human activities include CO<INF>2</INF>, methane 
(CH<INF>4</INF>), nitrous oxide (N<INF>2</INF>O), hydrofluorocarbons 
(HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride 
(SF<INF>6</INF>), hereafter referred to collectively as ``the six well-
mixed GHG,'' or, simply, GHGs. Together these six well-mixed GHGs 
constitute the ``air pollutant'' upon which the GHG thresholds in EPA's 
Tailoring Rule are based. These six gases remain in the atmosphere for 
decades to centuries where they become well-mixed globally in the 
atmosphere. When they are emitted more quickly than natural processes 
can remove them from the atmosphere, their concentrations increase, 
thus increasing the greenhouse effect.
    In the U.S., the combustion of fossil fuels (e.g., coal, oil, gas) 
is the largest source of CO<INF>2</INF> emissions and accounts for 80 
percent of the total GHG emissions by mass. Anthropogenic 
CO<INF>2</INF> emissions released from a variety of sources, including 
through the use of fossil fuel combustion and cement production from 
geologically stored carbon (e.g., coal, oil, and natural gas) that is 
hundreds of millions of years old, as well as anthropogenic 
CO<INF>2</INF> emissions from land-use changes such as deforestation, 
perturb the atmospheric concentration of CO<INF>2</INF>, and the 
distribution of carbon within different reservoirs readjusts. More than 
half of the energy-related emissions come from large stationary sources 
such as power plants, while about a third come from transportation. Of 
the six well-mixed GHGs, four (CO<INF>2</INF>, CH<INF>4</INF>, 
N<INF>2</INF>O, and HFCs) are emitted by motor vehicles. In the U.S., 
industrial processes (such as the production of cement, steel, and 
aluminum), agriculture, forestry, other land use, and waste management 
are also important sources of GHGs.
    Different GHGs have different heat-trapping capacities. The concept 
of Global Warming Potential (GWP) was developed to compare the heat-
trapping capacity and atmospheric lifetime of one GHG to another. The 
definition of a GWP for a particular GHG is the ratio of heat trapped 
by one unit mass of the GHG to that of one unit mass of CO<INF>2</INF> 
over a specified time period. When quantities of the different GHGs are 
multiplied by their GWPs, the different GHGs can be summed and compared 
on a carbon dioxide equivalent (CO<INF>2</INF>e) basis. For example, 
CH<INF>4</INF> has a GWP of 21, meaning each ton of CH<INF>4</INF> 
emissions would have 21 times as much impact on global warming over a 
100-year time horizon as 1 ton of CO<INF>2</INF> emissions. Thus, on 
the basis of heat-trapping capability, 1 ton of CH<INF>4</INF> would 
equal 21 tons of CO<INF>2</INF>e. The GWPs of the non-CO<INF>2</INF> 
GHG range from 21 (for CH<INF>4</INF>) up to 23,900 (for 
SF<INF>6</INF>). Aggregating all GHG on a CO<INF>2</INF>e basis at the 
source level allows a facility

[[Page 73020]]

to evaluate its total GHG emissions contribution based on a single 
metric.

B. What are the general requirements of the PSD program?

1. Overview of the PSD Program
    The PSD program is a preconstruction review and permitting program 
applicable to new major stationary sources and major modifications at 
existing stationary sources. The PSD program applies in areas that are 
designated ``attainment'' or ``unclassifiable'' for a national ambient 
air quality standard (NAAQS). The PSD program is contained in part C of 
title I of the CAA. The ``nonattainment NSR'' program applies in areas 
not in attainment of a NAAQS or in the Ozone Transport Region, and it 
is implemented under the requirements of part D of title I of the CAA. 
Collectively, EPA commonly refers to these two programs as the major 
NSR program. The governing EPA rules are contained in 40 CFR 51.165, 
51.166, 52.21, 52.24, and part 51, Appendices S and W. There is no 
NAAQS for CO<INF>2</INF> or any of the other well-mixed GHGs, nor has 
EPA proposed any such NAAQS; therefore, unless and until EPA takes 
further such action, the nonattainment NSR program does not apply to 
GHGs.
    The applicability of PSD to a particular source must be determined 
in advance of construction or modification and is pollutant-specific. 
The primary criterion in determining PSD applicability is whether the 
proposed project is sufficiently large (in terms of its emissions) to 
be a major stationary source or modification, both of which are 
described below. EPA has implemented these requirements in its 
regulations, which use somewhat different terminology than the CAA 
does, for determining PSD applicability.
a. Major Stationary Sources
    Under PSD, a ``major stationary source'' is any source belonging to 
a specified list of 28 source categories that emits or has the 
potential to emit 100 tpy or more of any air pollutant subject to 
regulation under the CAA, or any other source type that emits or has 
the potential to emit such pollutants in amounts equal to or greater 
than 250 tpy. See, e.g., 40 CFR 52.21(b)(1). We refer to these levels 
as the 100/250-tpy thresholds. A new source with a potential to emit 
(PTE) at or above the applicable ``major stationary source threshold'' 
is subject to major NSR. These limits originate from section 169 of the 
CAA, which applies PSD to any ``major emitting facility'' and defines 
the term to include any source that emits or has a PTE of 100 or 250 
tpy, depending on the source category. Note that the major source 
definition incorporates the phrase ``subject to regulation,'' which, as 
described later, will begin to include GHGs on January 2, 2011, under 
our interpretation of that phrase as discussed in the recent memorandum 
entitled, ``EPA's Interpretation of Regulations that Determine 
Pollutants Covered by Federal Prevention of Significant Deterioration 
(PSD) Permit Program.'' 75 FR 17004 (April 2, 2010).
b. Major Modifications
    PSD also applies to existing sources that undertake a ``major 
modification,'' which occurs when: (1) There is a physical change in, 
or change in the method of operation of, a ``major stationary source;'' 
(2) the change results in a ``significant'' emissions increase of a 
pollutant subject to regulation (equal to or above the significance 
level that EPA has set for the pollutant in 40 CFR 52.21(b)(23)); and 
(3) there is a ``significant net emissions increase'' of a pollutant 
subject to regulation that is equal to or above the significance level 
(defined in 40 CFR 52.21(b)(23)). Significance levels, which EPA has 
promulgated for criteria pollutants and certain other pollutants, 
represent a de minimis contribution to air quality problems. When EPA 
has not set a significance level for a regulated NSR pollutant, PSD 
applies to an increase of the pollutant in any amount (that is, in 
effect, the significance level is treated as zero).
2. General Requirements for PSD
    This section provides a very brief summary of the main requirements 
of the PSD program. One principal requirement is that a new major 
source or major modification must apply best available control 
technology (BACT), which is determined on a case-by-case basis taking 
into account, among other factors, the cost effectiveness of the 
control and energy and environmental impacts. EPA has developed a 
``top-down'' approach for BACT review, which involves a decision 
process that includes identification of all available control 
technologies, elimination of technically infeasible options, ranking of 
remaining options by control and cost effectiveness, and then selection 
of BACT. Under PSD, once a source is determined to be major for any 
regulated NSR pollutant, a BACT review is performed for each attainment 
pollutant that exceeds its PSD significance level as part of new 
construction or for modification projects at the source, where there is 
a significant increase and a significant net emissions increase of such 
pollutant.\4\
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    \4\ EPA notes that the PSD program has historically operated in 
this fashion for all pollutants--when new sources or modifications 
are ``major,'' PSD applies to all pollutants that are emitted in 
significant quantities from the source or project. This rule does 
not alter that for sources or modifications that are major due to 
their GHG emissions.
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    In addition to performing BACT, the source must analyze impacts on 
ambient air quality to assure that its emissions do not cause or 
contribute to violation of any NAAQS or PSD increments and must analyze 
impacts on soil, vegetation, and visibility. In addition, sources or 
modifications that would impact Class I areas (e.g., national parks) 
may be subject to additional requirements to protect air quality 
related values (AQRVs) that have been identified for such areas. Under 
PSD, if a source's proposed project impacts a Class I area, the Federal 
Land Manager is notified and is responsible for evaluating a source's 
projected impact on the AQRVs and recommending either approval or 
disapproval of the source's permit application based on anticipated 
impacts.
    Because there are no NAAQS or PSD increments established for GHGs, 
the requirement to demonstrate that a source does not cause or 
contribute to a violation of the NAAQS is not applicable to GHGs. 
Furthermore, consistent with EPA's statement in the Tailoring Rule, EPA 
believes it is not necessary for applicants or permitting authorities 
to assess impacts from GHGs in the context of the additional impacts 
analysis or Class I area provisions of the PSD regulations for the 
following policy reasons. Although it is clear that GHG emissions 
contribute to global warming and other climate changes that result in 
impacts on the environment, including impacts on Class I areas and 
soils and vegetation, due to the global scope of the problem, climate 
change modeling and evaluations of risks and impacts of GHG emissions 
typically are conducted for emission changes orders of magnitude larger 
than the emissions from individual projects that might be analyzed in 
PSD permit reviews. Quantifying the exact impacts attributable to a 
specific GHG source obtaining a permit in specific places and points 
would not be possible with current climate change modeling. Given these 
considerations, GHG emissions would serve as the more appropriate and 
credible proxy for assessing the impact of a given facility. Thus, EPA 
believes that the most practical way to address the considerations 
reflected in the Class I area and additional impacts

[[Page 73021]]

analysis is to focus on reducing GHG emissions to the maximum extent. 
In light of these analytical challenges, compliance with the BACT 
analysis is the best technique that can be employed at present to 
satisfy the additional impacts analysis and Class I area requirements 
of the rules related to GHGs.
    However, if PSD is triggered for a GHG-emitting source, all 
regulated NSR pollutants that the source emits in significant amounts 
would be subject to PSD requirements. Therefore, if a facility triggers 
review for regulated NSR pollutants that are non-GHG pollutants for 
which there are established NAAQS or increments, the air quality, 
additional impacts, and Class I requirements must be satisfied for 
those pollutants and the applicant and permitting authority are 
required to conduct the necessary analysis.
    Pursuant to existing PSD requirements, the permitting authority 
must provide notice of its preliminary decision on a source's 
application for a PSD permit and must provide an opportunity for 
comment by the public, industry, and other interested persons. After 
considering and responding to comments, the permitting authority must 
issue a final determination on the construction permit. Usually NSR 
permits are issued by a State or local air pollution control agency 
that has its own authority to issue PSD permits under a permit program 
that has been approved by EPA for inclusion in its SIP. In some areas, 
EPA has delegated its authority to issue PSD permits under Federal 
regulations to the State or local agency. In other areas, EPA issues 
the permits under its own authority.

C. What are the CAA requirements to include the PSD program in the SIP?

    The CAA contemplates that the PSD program be implemented in the 
first instance by the States and requires that States include PSD 
requirements in their SIPs. CAA section 110(a)(2)(C) requires that--

    Each implementation plan * * * shall * * * 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 part [C] * * * 
of this subchapter.

    CAA section 110(a)(2)(J) requires that--

    Each implementation plan * * * shall * * * meet the applicable 
requirements of * * * part C of this subchapter (relating to 
significant deterioration of air quality and visibility protection).

    CAA section 161 provides that--

    [E]ach applicable implementation plan shall contain emission 
limitations and such other measures as may be necessary, as 
determined under regulations promulgated under this part [C], to 
prevent significant deterioration of air quality in each region * * 
* designated * * * as attainment or unclassifiable.

    These provisions, read in conjunction with the PSD applicability 
provisions as well as other provisions such as the BACT provision under 
CAA Section 165(a)(4), mandate that SIPs include PSD programs that are 
applicable to, among other things, any air pollutant that is subject to 
regulation. As discussed below, this includes GHGs on and after January 
2, 2011.\5\
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    \5\ In the Tailoring Rule, EPA noted that commenters argued, 
with some variations, that the PSD provisions applied only to NAAQS 
pollutants, and not GHG, and EPA responded that the PSD provisions 
apply to all pollutants subject to regulation, including GHG. See 75 
FR at 31560-62. EPA maintains its position that the PSD provisions 
apply to all pollutants subject to regulation, and the Agency 
incorporates by reference the discussion of this issue in the 
Tailoring Rule.
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    A number of States do not have PSD programs approved into their 
SIPs. In those States, EPA's regulations at 40 CFR 52.21 govern, and 
either EPA or the State as EPA's delegatee acts as the permitting 
authority. However, most States have PSD programs that have been 
approved into their SIPs, and these States implement their PSD programs 
and act as the permitting authority. Georgia has a SIP-approved PSD 
program.

D. What actions has EPA taken concerning PSD requirements for GHG-
emitting sources?

1. What are the Endangerment Finding, the Light Duty Vehicle Rule, and 
the Johnson Memo Reconsideration?
    By notice dated December 15, 2009, and pursuant to CAA section 
202(a), EPA issued two findings regarding GHGs that are commonly 
referred to as the ``Endangerment Finding'' and the ``Cause or 
Contribute Finding.'' ``Endangerment and Cause or Contribute Findings 
for Greenhouse Gases Under Section 202(a) of the Clean Air Act,'' 74 FR 
66496. In the Endangerment Finding, the Administrator found that six 
long-lived and directly emitted GHGs--CO<INF>2</INF>, CH<INF>4</INF>, 
N<INF>2</INF>O, HFCs, PFCs, and SF<INF>6</INF>--may reasonably be 
anticipated to endanger public health and welfare. In the Cause or 
Contribute Finding, the Administrator ``defin[ed] the air pollutant as 
the aggregate group of the same six * * * greenhouse gases,'' 74 FR at 
66536, and found that the combined emissions of this air pollutant from 
new motor vehicles and new motor vehicle engines contribute to the GHG 
air pollution that endangers public health and welfare.
    By notice dated May 7, 2010, EPA published what is commonly 
referred to as the ``Light-Duty Vehicle Rule'' (LDVR), which for the 
first time established Federal controls on GHGs emitted from light-duty 
vehicles. ``Light-Duty Vehicle Greenhouse Gas Emission Standards and 
Corporate Average Fuel Economy Standards; Final Rule.'' 75 FR 25324. In 
its applicability provisions, the LDVR specifies that it ``contains 
standards and other regulations applicable to the emission * * * of six 
greenhouse gases,'' including CO<INF>2</INF>, CH<INF>4</INF>, 
N<INF>2</INF>O, HFCs, PFCs, and SF<INF>6</INF>. 75 FR at 25686 (40 CFR 
86.1818-12(a)).
    On December 18, 2008, EPA issued a memorandum, ``EPA's 
Interpretation of Regulations that Determine Pollutants Covered by 
Federal Prevention of Significant Deterioration (PSD) Permit Program'' 
(known as the ``Johnson Memo'' or the ``PSD Interpretive Memo,'' and 
referred to in this preamble as the ``Interpretive Memo''), that set 
forth EPA's interpretation regarding which EPA and State actions, with 
respect to a previously unregulated pollutant, cause that pollutant to 
become ``subject to regulation'' under the Act. Whether a pollutant is 
``subject to regulation'' is important for the purposes of determining 
whether it is covered under the Federal PSD permitting program. The 
Interpretive Memo established that a pollutant is ``subject to 
regulation'' only if it is subject to either a provision in the CAA or 
regulation adopted by EPA under the CAA that requires actual control of 
emissions of that pollutant (referred to as the ``actual control 
interpretation''). On February 17, 2009, EPA granted a petition for 
reconsideration on the Interpretive Memo and announced its intent to 
conduct a rulemaking to allow for public comment on the issues raised 
in the memorandum and on related issues. EPA also clarified that the 
Interpretive Memo would remain in effect pending reconsideration.
    On April 2, 2010, EPA published a notice conveying its decision to 
continue applying (with one limited refinement) the Interpretive Memo's 
interpretation of ``subject to regulation.'' ``Reconsideration of 
Interpretation of Regulations that Determine Pollutants Covered by 
Clean Air Act Permitting Programs,'' 75 FR 17004. EPA concluded that 
the ``actual control interpretation'' is the most appropriate 
interpretation to apply given the policy implications. However, EPA 
refined the Agency's interpretation in one respect: EPA

[[Page 73022]]

established that PSD permitting requirements apply to a newly regulated 
pollutant at the time a regulatory requirement to control emissions of 
that pollutant ``takes effect'' (rather than upon promulgation or the 
legal effective date of the regulation containing such a requirement). 
In addition, based on the anticipated promulgation of the LDVR, EPA 
stated that the GHG requirements of the vehicle rule would take effect 
on January 2, 2011, because that is the earliest date that a 2012 model 
year vehicle may be introduced into commerce. In other words, the 
compliance obligation under the LDVR does not occur until a 
manufacturer may introduce into commerce vehicles that are required to 
comply with GHG standards, which will begin with model year 2012 and 
will not occur before January 2, 2011.
2. What is EPA's Tailoring Rule?
    On June 3, 2010 (effective August 2, 2010), EPA promulgated a final 
rulemaking, the Tailoring Rule, for the purpose of relieving 
overwhelming permitting burdens that would, in the absence of the rule, 
fall on permitting authorities and sources. 75 FR 31514. EPA 
accomplished this by tailoring the applicability criteria that 
determine which GHG emission sources become subject to the PSD program 
\6\ of the CAA. In particular, EPA established in the Tailoring Rule a 
phase-in approach for PSD applicability and established the first two 
steps of the phase-in for the largest GHG-emitters. Additionally, EPA 
committed to certain follow-up actions regarding future steps beyond 
the first two, discussed in more detail later in this notice.
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    \6\ The Tailoring Rule also applies to the title V program, 
which requires operating permits for existing sources. However, 
today's action does not affect Georgia's title V program.
---------------------------------------------------------------------------

    For the first step of the Tailoring Rule, which will begin on 
January 2, 2011, PSD requirements will apply to major stationary source 
GHG emissions only if the sources are subject to PSD anyway due to 
their emissions of non-GHG pollutants. Therefore, in the first step, 
EPA will not require sources or modifications to evaluate whether they 
are subject to PSD requirements solely on account of their GHG 
emissions. Specifically, for PSD, Step 1 requires that as of January 2, 
2011, the applicable requirements of PSD, most notably, the BACT 
requirement, will apply to projects that increase net GHG emissions by 
at least 75,000 tpy CO<INF>2</INF>e, but only if the project also 
significantly increases emissions of at least one non-GHG pollutant.
    The second step of the Tailoring Rule, beginning on July 1, 2011, 
will phase in additional large sources of GHG emissions. New sources 
that emit, or have the potential to emit, at least 100,000 tpy 
CO<INF>2</INF>e will become subject to the PSD requirements. In 
addition, sources that emit or have the potential to emit at least 
100,000 tpy CO<INF>2</INF>e and that undertake a modification that 
increases net GHG emissions by at least 75,000 tpy CO<INF>2</INF>e will 
also be subject to PSD requirements. For both steps, EPA notes that if 
sources or modifications exceed these CO<INF>2</INF>e-adjusted GHG 
triggers, they are not covered by permitting requirements unless their 
GHG emissions also exceed the corresponding mass-based triggers in tpy.
    EPA believes that the costs to the sources and the administrative 
burdens to the permitting authorities of PSD permitting will be 
manageable at the levels in these initial two steps and that it would 
be administratively infeasible to subject additional sources to PSD 
requirements at those times. However, EPA also intends to issue a 
supplemental notice of proposed rulemaking in 2011, in which the Agency 
will propose or solicit comment on a third step of the phase-in that 
would include more sources, beginning on July 1, 2013. In the Tailoring 
Rule, EPA established an enforceable commitment that the Agency will 
complete this rulemaking by July 1, 2012, which will allow for one 
year's notice before Step 3 would take effect.
    In addition, EPA committed to explore streamlining techniques that 
may well make the permitting programs much more efficient to administer 
for GHG, and that therefore may allow their expansion to smaller 
sources. EPA expects that the initial streamlining techniques will take 
several years to develop and implement.
    In the Tailoring Rule, EPA also included a provision that no source 
with emissions below 50,000 tpy CO<INF>2</INF>e and no modification 
resulting in net GHG increases of less than 50,000 tpy CO<INF>2</INF>e 
will be subject to PSD permitting before at least 6 years (i.e., April 
30, 2016). This is because EPA has concluded that at the present time, 
the administrative burdens that would accompany permitting sources 
below this level would be so great that even with the streamlining 
actions that EPA may be able to develop and implement in the next 
several years, and even with the increases in permitting resources that 
EPA can reasonably expect the permitting authorities to acquire, it 
would be impossible to administer the permit programs for these sources 
until at least 2016.
    As EPA explained in the Tailoring Rule, the threshold limitations 
are necessary because without them PSD would apply to all stationary 
sources that emit or have the potential to emit more than 100 or 250 
tons of GHG per year beginning on January 2, 2011. This is the date 
when EPA's recently promulgated LDVR takes effect, imposing control 
requirements for the first time on CO<INF>2</INF> and other GHGs. If 
this January 2, 2011, date were to pass without the Tailoring Rule 
being in effect, PSD requirements would apply to GHG emissions at the 
100/250 tpy applicability levels provided under a literal reading of 
the CAA as of that date. From that point forward, a source owner 
proposing to construct any new major source that emits at or higher 
than the applicability levels (and which therefore may be referred to 
as a ``major'' source) or modify any existing major source in a way 
that would increase GHG emissions would need to obtain a permit under 
the PSD program that addresses these emissions before construction or 
modification could begin.
    Under these circumstances, many small sources would be burdened by 
the costs of the individualized PSD control technology requirements and 
permit applications that the PSD provisions, absent streamlining, 
require. Additionally, State and local permitting authorities would be 
burdened by the extraordinary number of these permit applications, 
which are orders of magnitude greater than the current inventory of 
permits and would vastly exceed the current administrative resources of 
the permitting authorities. Permit gridlock would result since the 
permitting authorities would likely be able to issue only a tiny 
fraction of the permits requested.
    The Tailoring Rule's thresholds are based on CO<INF>2</INF>e for 
the aggregate sum of six GHGs that constitute the pollutant that will 
be subject to regulation, which we refer to as GHG.\7\ These gases are 
CO<INF>2</INF>, CH<INF>4</INF>, N<INF>2</INF>O, HFCs, PFCs, and 
SF<INF>6</INF>. Thus, in EPA's Tailoring Rule, EPA provided that PSD 
applicability is based on the quantity that results when the mass 
emissions of each of these gases is multiplied by the GWP of that gas, 
and then summed for all six gases. However, EPA further provided that 
in order for a source's GHG emissions to trigger PSD requirements, the 
quantity of the GHG

[[Page 73023]]

emissions must equal or exceed both the applicability thresholds 
established in the Tailoring Rule on a CO<INF>2</INF>e basis and the 
statutory thresholds of 100 or 250 tpy on a mass basis.\8\ Similarly, 
in order for a source to be subject to the PSD modification 
requirements, the source's net GHG emissions increase must exceed the 
applicable significance level on a CO<INF>2</INF>e basis and must also 
result in a net mass increase of the constituent gases combined.
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    \7\ The term ``greenhouse gases'' is commonly used to refer 
generally to gases that have heat-trapping properties. However, in 
this notice, unless noted otherwise, we use it to refer specifically 
to the pollutant regulated in the LDVR.
    \8\ The relevant thresholds are 100 tpy for title V, and 250 tpy 
for PSD, except for 28 categories listed in EPA regulations for 
which the PSD threshold is 100 tpy.
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    In the Tailoring Rule, EPA adopted regulatory language codifying 
the phase-in approach. As explained in that rulemaking, many State, 
local and Tribal area programs will likely be able to immediately 
implement the approach without rule or statutory changes by, for 
example, interpreting the term ``subject to regulation'' that is part 
of the applicability provisions for PSD permitting. EPA has requested 
permitting authorities to confirm that they will follow this 
implementation approach for their programs, and if they cannot, then 
EPA has requested that they notify the Agency so that we can take 
appropriate follow-up action to narrow Federal approval of their 
programs before GHGs become subject to PSD permitting on January 2, 
2011.\9\ On August 2, 2010, Georgia provided a letter to EPA confirming 
that the State has the authority to issue PSD permits governing GHG 
emissions as of January 2, 2011, but explaining that Georgia needs to 
amend its SIP to enable it to implement the Tailoring Rule thresholds. 
See the docket for this proposed rulemaking for a copy of Georgia's 
letter.
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    \9\ Narrowing EPA's approval will ensure that for Federal 
purposes, sources with GHG emissions that are less than the 
Tailoring Rule's emission thresholds will not be obligated under 
Federal law to obtain PSD permits during the gap between when GHG 
PSD requirements go into effect on January 2, 2011 and when either 
(1) EPA approves a SIP revision adopting EPA's tailoring approach, 
or (2) if a State opts to regulate smaller GHG-emitting sources, the 
State demonstrates to EPA that it has adequate resources to handle 
permitting for such sources. EPA expects to finalize the narrowing 
action prior to the January 2, 2011 deadline with respect to those 
States for which EPA will not have approved the Tailoring Rule 
thresholds in their SIPs by that time.
---------------------------------------------------------------------------

3. What is the GHG SIP Call?
    By Federal Register notice dated September 2, 2010, EPA proposed 
the GHG SIP Call. In that action, along with the companion GHG FIP 
rulemaking published at the same time, EPA took steps to ensure that in 
the 13 States that do not appear to have authority to issue PSD permits 
to GHG-emitting sources at present, either the State or EPA will have 
the authority to issue such permits by January 2, 2011. EPA explained 
that although for most States either the State or EPA is already 
authorized to issue PSD permits for GHG-emitting sources as of that 
date, our preliminary information shows that these 13 States have EPA-
approved PSD programs that do not appear to include GHG-emitting 
sources and therefore do not appear to authorize these States to issue 
PSD permits to such sources. Therefore, EPA proposed to find that these 
13 States' SIPs are substantially inadequate to comply with CAA 
requirements and, accordingly, proposed to issue a SIP Call to require 
a SIP revision that applies their SIP PSD programs to GHG-emitting 
sources. In the companion GHG FIP rulemaking, EPA proposed a FIP that 
would give EPA authority to apply EPA's PSD program to GHG-emitting 
sources in any State that is unable to submit a corrective SIP revision 
by its deadline. Georgia was not one of the States for which EPA 
proposed a SIP Call.

III. What is the relationship between today's proposed action and EPA's 
proposed GHG SIP Call and GHG FIP?

    As noted above, by notice dated September 2, 2010, EPA proposed the 
GHG SIP Call. At the same time, EPA proposed a FIP to apply in any 
State that is unable to submit, by its deadline, a SIP revision to 
ensure that the State has authority to issue PSD permits to GHG-
emitting sources.\10\ As discussed in Section IV of this rulemaking, 
Georgia interprets its current PSD regulations as providing it with the 
authority to regulate GHGs, and as such, Georgia is not included on the 
list of areas for the proposed SIP call. Additionally, Georgia would 
not be subject to the FIP to implement GHG for PSD applicability. 
Georgia's September 30, 2010, proposed SIP revision (the subject of 
this rulemaking) merely modifies Georgia's SIP to establish appropriate 
thresholds for determining which stationary sources and modification 
projects become subject to permitting requirements for GHG emissions 
under the PSD program of the CAA.
---------------------------------------------------------------------------

    \10\ As explained in the proposed GHG SIP Call (75 FR 53892, 
53896), EPA intends to finalize its finding of substantial 
inadequacy and the SIP call for the 13 listed States by December 1, 
2010. EPA requested that the States for which EPA is proposing a SIP 
call identify the deadline--between 3 weeks and 12 months from the 
date of signature of the final SIP Call--that they would accept for 
submitting their corrective SIP revision.
---------------------------------------------------------------------------

IV. What is the background for the action proposed by EPA in today's 
Notice regarding the PSD Permitting Requirements for the 
PM<INF>2.5</INF> NAAQS?

    Today's proposed action on the Georgia SIP also 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 (the 
NSR PM<INF>2.5</INF> Rule). 73 FR 28321 (May 16, 2008). In the NSR 
PM<INF>2.5</INF> Rule, EPA finalized regulations to implement the NSR 
program for fine particulate matter. 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 those requirements for both the 
PSD and nonattainment NSR programs. Georgia's September 30, 2010, SIP 
revision addresses the PSD requirements for the PM<INF>2.5</INF> NAAQS. 
Georgia will provide a subsequent SIP revision to address the 
nonattainment NSR 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.

A. Fine Particulate Matter and the NAAQS for PM2.5

    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.
    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>,

[[Page 73024]]

setting an annual standard at a level of 15 micrograms per cubic meter 
([micro]g/m\3\) and a 24-hour standard at a level of 65 [micro]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 [micro]g/m\3\ and retained the existing annual PM<INF>2.5</INF> 
NAAQS of 15 [micro]g/m\3\. 71 FR 61144.

B. Implementation of NSR for the PM2.5 NAAQS

    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'').\11\ The Seitz memo was 
designed to help States implement PSD requirements pertaining to the 
new PM<INF>2.5</INF> NAAQS in light of known technical difficulties 
posed by PM<INF>2.5</INF>, including the lack of necessary tools to 
calculate the emissions of PM<INF>2.5</INF> and related precursors, the 
lack of adequate modeling techniques to project ambient impacts, and 
the lack of PM<INF>2.5</INF> monitoring sites. Specifically, the Seitz 
memo authorized sources to use implementation of a PM<INF>10</INF> 
program as a surrogate for meeting PM<INF>2.5</INF> PSD requirements 
until EPA resolved these technical difficulties.
---------------------------------------------------------------------------

    \11\ 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. This memorandum 
provides 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> nonattainment NSR 
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> 
Nonattainment NSR Guidance recommended that until EPA promulgates 
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. As mentioned earlier in this rulemaking, 
Georgia's September 30, 2010, SIP revision only relates to the PSD 
provisions for the PM<INF>2.5</INF> standard.
---------------------------------------------------------------------------

    On May 16, 2008, EPA finalized a rule to implement the 1997 
PM<INF>2.5</INF> NAAQS, including changes to the NSR program. See 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. In summary, the NSR 
PM<INF>2.5</INF> Rule: (1) Requires NSR permits to address directly 
emitted PM<INF>2.5</INF> and precursor pollutants (2) establishes 
significant emission rates for direct PM<INF>2.5</INF> and precursor 
pollutants; (3) allows interpollutant trading under the 
PM<INF>2.5</INF> nonattainment NSR program; and (4) requires States to 
address condensable PM in establishing enforceable emission limits. 
With two exceptions, 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. 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 information 
on the NSR PM<INF>2.5</INF> Rule, see 73 FR 28321.
    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.\12\
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    \12\ 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).
---------------------------------------------------------------------------

    Georgia's September 30, 2010, submittal addresses the PSD 
requirements related to EPA's May 16, 2008, NSR PM<INF>2.5</INF> Rule. 
Though EPA has not finalized a repeal of the PM<INF>2.5</INF> 
grandfathering provision at 40 CFR 52.21(i)(1)(xi), Georgia elected not 
to include this provision in its SIP submittal.

V. What is EPA's analysis of Georgia's SIP revision?

    On September 30, 2010, EPD provided a revision to Georgia's SIP to 
EPA for parallel processing and eventual approval. The proposed change 
pertaining to PSD permitting for GHGs is necessary because without it 
PSD requirements would apply for GHGs, as of January 2, 2011, at the 
100- or 250-tpy levels provided under the CAA. This would greatly 
increase the number of required permits, imposing undue costs on small 
sources; which would overwhelm Georgia's permitting resources and 
severely impair the function of the program. The proposed change 
pertaining to PSD permitting for PM<INF>2.5</INF> is necessary to 
comply with Federal requirements. More detail regarding EPA's analysis 
of the proposed changes to Georgia's SIP (as provided in the September 
30, 2010, submittal) is provided below.

A. Analysis Regarding Georgia's Changes To Incorporate the Tailoring 
Rule

    The State of Georgia's September 30, 2010, proposed SIP revision 
establishes thresholds for determining which stationary sources and 
modification projects become subject to permitting requirements for GHG 
emissions under Georgia's PSD program. Specifically, Georgia's 
September 30, 2010, proposed SIP revision incorporates by reference the 
Federal Tailoring Rule provisions at 40 CFR 52.21 (as amended June 3, 
2010, and effective August 2, 2010), into the Georgia SIP (Georgia's 
Regulation 391-3-1-.02(7)--Prevention of Significant Deterioration of 
Air Quality) \13\ to address the thresholds for GHG permitting 
applicability.
---------------------------------------------------------------------------

    \13\ Georgia's submittal also relates to title V provisions 
which are not included in the SIP. As such, EPA is not proposing to 
take action to approve Georgia's update to their title V regulations 
in this rulemaking.
---------------------------------------------------------------------------

    Georgia is currently a SIP-approved State for the PSD program, and 
has incorporated by reference EPA's 2002 NSR reform revisions for PSD 
at 40 CFR 52.21 into its SIP.\14\ The State has informed EPA that it 
interprets SIP Rule 391-3-1-.02(7), which includes the preconstruction 
review program required by Part C of title I of the CAA, as providing 
it with authority to issue

[[Page 73025]]

PSD permits governing GHGs. Georgia's current PSD program incorporates 
by reference the Federal requirements, found at 40 CFR 52.21 (adopted 
prior to the promulgation of EPA's Tailoring Rule), into the State's 
major source PSD program (which applies to major stationary sources 
having the potential to emit at least 100-tpy or 250-tpy or more of a 
regulated NSR pollutant, depending on the type of source or 
modifications constructing in areas designated attainment or 
unclassifiable with respect to the NAAQS).
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    \14\ On September 4, 2008, EPA proposed to approve Georgia's 
submittal related to the 2002 NSR reform rules. See 73 FR 51606. EPA 
considered the comments received on the September 4, 2008, proposal, 
and has addressed the comments in a final rulemaking that was signed 
on November 12, 2010.
---------------------------------------------------------------------------

    This current SIP revision to Georgia's Regulation 391-3-1-.02(7) 
(the subject of this proposed rulemaking) incorporates by reference the 
provisions at 40 CFR 52.21 as amended by the promulgation of the 
Tailoring Rule. Specifically, Georgia's September 30, 2010 revision 
updates its existing incorporation by reference of the Federal NSR 
program to include the relevant Federal Tailoring Rule provisions set 
forth at 40 CFR 52.21. EPA has preliminarily determined that Georgia's 
proposed SIP revision is consistent with the Tailoring Rule. 
Furthermore, EPA has preliminarily determined that this revision to 
Georgia's SIP is consistent with section 110 of the CAA. See, e.g., 
Tailoring Rule, 75 FR at 31561.

B. Analysis Regarding Georgia's Changes To Incorporate the NSR 
PM<INF>2.5</INF> Requirements for PSD

    Georgia's Regulation 391-3-1-.02(7) (the subject of this proposed 
rulemaking) also incorporates by reference the provisions at 40 CFR 
52.21 as amended by the promulgation of the NSR PM<INF>2.5</INF> Rule 
for PSD. Specifically, Georgia's September 30, 2010, revision updates 
its existing incorporation by reference of the Federal NSR program to 
include the relevant Federal NSR PM<INF>2.5</INF> Rule provisions for 
PSD set forth at 40 CFR 52.21. However, in light of EPA's proposed 
rulemaking to repeal the PM<INF>2.5</INF> ``grandfathering'' provision, 
as noted in section IV.B. above, Georgia's revision excludes adoption 
of the relevant Federal rule provision, 40 CFR 52.21(i)(1)(ix). EPA has 
preliminarily determined that Georgia's proposed SIP revision is 
consistent with the NSR PM<INF>2.5</INF> Rule for PSD. Furthermore, EPA 
has preliminarily determined that this revision to Georgia's SIP is 
consistent with section 110 of the CAA.

VI. Proposed Action

    EPA is proposing to approve Georgia's September 30, 2010, SIP 
revision, relating to PSD requirements for GHG-emitting sources and for 
the PM<INF>2.5</INF> NAAQS. Specifically, Georgia's September 30, 2010, 
proposed SIP revision establishes appropriate emissions thresholds for 
determining PSD applicability with respect to new and modified GHG-
emitting sources in accordance with EPA's Tailoring Rule, and 
incorporates Federal requirements related to PSD for the 
PM<INF>2.5</INF> NAAQS. EPA has made the preliminary determination that 
this SIP revision is approvable because it is in accordance with the 
CAA and EPA regulations regarding PSD permitting for GHGs and for the 
PM<INF>2.5</INF> NAAQS.

VII. 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 the State's law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by the State's 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 FR 43255, 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, and Reporting and recordkeeping requirements.

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

    Dated: November 18, 2010.
Gwendolyn Keyes Fleming,
Regional Administrator, Region 4.
[FR Doc. 2010-29951 Filed 11-26-10; 8:45 am]
BILLING CODE 6560-50-P


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