Regional Administrator Jared Blumenfeld signed the following proposed rule on August 20, 2014 and EPA is

submitting it for publication in the Federal Register (FR). While we have taken steps to ensure the accuracy of this Internet version of the rule, it is not the official version of the rule for purposes of compliance. Please refer to the official version in a forthcoming FR publication, which will appear o n the Government Printing Office’s FDsys website (http://fdsys.gpo.gov/fdsys/search/home.action) and on Regulations.gov (http://www.regulations.gov) in Docket Number EPA

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6560

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52
EPA
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Approval and Promulgation of Implementation Plans; Arizona ; Nogales Nonattainment Area ; F ine Particulate Matter Emission s Inventories AGENCY: Environmental Protection Agency.
ACTION: Proposed rule. SUMMARY: The Environmental Protection Agency ( EPA ) is proposing
to approve revisions to the Arizona State Implementation Plan (SIP ) concerning 2008 and 2010 emission s inventories for the 2006 24

- hour fine partic le (PM 2.5 ) National Ambient Air Quality Standard ( NAAQS ) for the Nogales PM 2.5 nonattainment area . We are approving these annual emission s inventories under the Clean Air Act (CAA or the Act).
DATE S : Any comments must arrive by [I NSERT DATE 30 DAYS FROM THE
DATE OF PUBLICATION IN THE FEDERAL REGISTER ]
. ADDRESSES: Submit comments, identified by docket number EPA
-This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

2 R09

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- 0450 , by one of the following methods: 1. Federal eRulemaking Portal: www.regulations.gov . Follow the on

- line instructions. 2. E
- mail: wamsley.jerry@epa.gov
. 3. Mail or deliver: Jerry Wamsley (Air

- 2 ), U.S. Environmental Protection Agency Region IX, 75 Hawthorne Street, San Francisco, CA 94105

- 3901. Instructions: All comments will be included in the public docket without change and may be made available online at www.regulations.gov , including any personal information provided, unless the comment includes Confidential Bus iness Information (CBI) or other information whose disclosure is restricted by statute. Information that you consider CBI or otherwise protected should be clearly identified as such and should not be submitted through www.regulations.gov or e - mail. www.regulations.gov is an “anonymous access” system, and EPA will not know your identity or contact information unless you provide it in the body of your comment. If you send e

- mail directly to EPA, your e

- mail address will be automatically captured and included as part of t he public comment. 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 ofThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

3 special characters, any form of encryption, an d be free of any defects or viruses.
Docket: Generally, documents in the docket for this action are available electronically at www.regulations.gov and in hard copy at EPA Region IX, 75 Hawthorne Street, San F rancisco, California 94105

- 3901. While all documents in the docket are listed at www.regulations.gov , some information may be publicly available only at the hard copy location (e.g., copyrighted material, large ma ps), and some may not be publicly available in either location (e.g., CBI). To inspect the hard copy materials, please schedule an appointment during normal business hours with the contact listed in the FOR FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT: Jerry Wamsley , EPA Region IX, (415) 9 47

- 4111 , wamsley.jerry @epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, “we,” “us,” and “our” refer to EPA. Table of Contents I. Background A. PM

2.5 NAAQS B. Designation of PM 2.5 Nonattainment Areas C. Submittal Requirements for PM 2.5 Nonattainment Areas II. Procedural Requirements for SIP Revisions A. Submittal for the Nogales Nonattainment Area III. Analysis of Arizona ’s Submittal A. Nogales Area Emission s Inventor ies IV. Proposed Action V. Statutory and Executive Order Reviews
I. BackgroundThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

4 A. PM

2.5 NAAQS Under section 109 of the CAA , EPA establishe s national ambient air quality standards (NAAQS or "standards") for certain pervasive air pollutants (referred to a s "criteria pollutants") and conducts periodic reviews of the NAAQS to determine whether they should be revised or whether new NAAQS should be established. On July 18, 1997, EPA revised the NAAQS for particulate matter to add new standards for fine particles , using P M 2.5 (particles less than or equa l to 2.5 micrometers in diameter ) as the indicator for the pollutant. EPA established primary and secondary annual and 24

- hour standards for P M 2.5 (62 FR 38652)
. 1 The annual standard was set at 15.0 micrograms per cubic meter (μg/m 3 ), based on a 3

- year average of annual mean P M 2.5 concentrations, and the
24

- hour standard was set at 65 μg/m 3 , based on the 3

- y ear average of the 98th percentile of 2 4

- hour PM 2.5

concen trations at each population

- oriented monitor within an

area. On Oc tober 17, 2006 , EPA revised the level of the 24

- hour

1 For a given air pollutant, " p rimar y " national ambient air quality standards are those determined by EPA as requisite to protect the public healt h , and "secondary" standards are those determined by EPA as requisite to protect the public welfare from any known or anticipated adverse effects as s ociated with the presence of such air pollutant in the ambient air. See CAA section 109(b).This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

5 PM 2.5 NAAQS to 35 μg/m 3 , based on a 3

- ye ar average of the 98th percentile of 24

- hour concentrations ( 71 FR 61144 )
. In this same action, EPA also retained the 1997 annual PM 2.5 standard at 15.0 μg/m 3 based on a 3

- year average of annual mean PM 2.5 concentrations, but with tighter constraints on the spatial averaging criteria.
B. Designation of PM 2.5 Nonattainment Areas Effective December 14, 2009, EPA established the initial air quality designations for most areas in the United States for the 2006 24

- hour PM 2.5 NAAQS ( 74 FR 58688 , November 13, 2009 ). Among the various areas designated in 2 009, EPA designated the Nogales area in Arizona as nonattainment for the 2006 24

- hour
PM 2.5 NAAQS. 2 The boundaries for th is area are d escribed in 40 CFR 81. 303
. C. Submittal Requirements for PM 2.5 Nonattainment Areas Section 172(c)(3) of the CAA requires a state with an area designated as nonattai nment of a standard to submit a comprehensive, accurate , and current inventory of actual emissions for the nonattainment area for EPA’s review and approval
. EPA’s requirements for an emission s inventory for the

2 The Nogales PM 2
. 5 n o n a t t a i n m e n t a r ea covers 76.1 square miles and is located in southern Santa Cruz County, Arizona adjacent to the international border with Mexico.This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

6 PM 2.5 NAAQS are set forth in 40 CFR 51.1008
. 3 , 4 As applied to the 2006 PM 2.5 24

- hour NAAQS , t his proposal is limited to the emission s inventories for direct ly emitted PM 2.5 and PM 2.5 precursors submitted by the Arizona Department of Environmental Quality (ADEQ) for the Nogales nonattainment area, as requir ed under section 172(c)(3) of the CAA
. On January 7, 2013 , EPA finalized a determination that the Nogales nonattainment area had attained the 2006 24

- hour PM 2.5 NAAQS ( 78 FR 887 ) . Th is determination of attainment w as based upon complete, quality

- assured, and certified ambient air monitoring data showing that the Nogales nonattainment a rea had monitored attainment of the 2006 24

- hour PM 2.5 NAAQS over three
years , from 2009 to 2011 . Based on th is determination , the
requ irements for Arizona to submit an attainment demonstration,

r easonably available control measures, a reasonable further

3 40 CFR 51.1008 (a)(2) and (b) do not apply for the Nogales area because the y relate to requirements for attainment demonstration s and reasonable further progress (RFP) ; these requirements were suspended for the Nogales PM 2.5 nonattainment area so long as the area continues to meet the PM 2.5 standard. For further discussion of our Clean Data Policy as applied to the Nogales area, refer to our proposed rule (77 FR 65656, October 30, 2012) and final rule ( 78 FR 887, January 7, 2013 )
. 4 Although the U.S. Court of Appeals for the District of Columbia (DC Circuit) recently remanded this rule and directed EPA to re

- promulgate it pursuant to subpart 4 of part D, title I of the CAA ( see Natural Resources Defense Council v. EPA, 706 F.3d 428 (D
. C . Cir
. 2013)), the court’s ruling in this case does not affect EPA’s action on these emission s inventories. Subpart 4 of part D, title I of the Act contains no specific provision governing emission s inventories for PM 10 or PM 2.5 nonattainment areas that supersedes the general emission s inventory requirement for all nonattainment areas in CAA section 172(c)(3). See “State Implementation Plans; General Preamble for the Implementation of Title I of the Clean Air Act Amendmen ts of 1990,” 57 FR 13498, (April 16, 1992).This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

7 progress (RFP) plan, and contingency measures for failure to

me et RFP and attainment deadlines were suspended for so long as the Nogales area continues to attain the 2006 24

- hour PM 2.5 NAAQS. The emission s inventory submittal requirement in CAA section 172(c)(3) , however, is not suspended by our determi nation of attainment . Consequently, Arizona has submitted
the Nogales area emissi ons inventories to address the 172(c)(3) requirement. Please see our October 30, 2012 proposed rule for further discussion of EPA’s Clean Data Policy and its application to the Nogales nonattainment area (77 FR 65656 )
. II. Procedural Requirements for SIP Revisions Sections 110(a)(1) and 110(l) of the Act require states to provide reasonable notice and public hearing prior to adoption of SIP revisions. Section 110(k)(1)(B) requires EPA to determine whether a SIP submittal is complete within 60 days of receipt , but no later than 6 months after the date of the submittal . Any state submittal that we have not determined to be complete or incomplete will become complete by operation of law six months after the day of submittal. A finding of completeness does not approve the submittal as part of the SIP and it does
not indicate that the submittal is approvable. A completeness finding start s a twelve month clock for EPA to act on the SIP submittal. See CAA section 110(k)(2).This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

8 A. Submittal for the Nogales Nonattai nment Area
On September 6, 2013 , Arizona submitted the 2008 and 2010
PM 2.5 emissions i nventor ies for the Nogales nonattainment area titled “Arizona State Implementation Plan Revision for the Nogales PM 2.5 Nonattainment Area ”
. 5 A rizona ’s submittal provides documentation of the public review process followed by the State prior to submitt ing the emission s inventories to EPA . The documentation provides evidence that reasonable notice of a public hearing was provided to the public and that a public
hear ing was conducted prior to submittal. 6 A rizona’s submittal of the Nogales nonattainment area emissions inventories became complete by operation of law on March 6, 2014
. Based on the documentation provided in A rizona ’s SIP revision submittal, we find that t he Nogales area emission s i nventor ies satisfies the procedural requirements of sections 110(a)(1) and 110(l) of the Act for revising SIPs.
II I . Analysis of Arizona ’s Submittal

5 See letter from Eric Massey, Director, Air Quality Division, ADEQ to Jared Blumenfeld , Regional Administrator, USEPA, dated September 6, 2013 and enclosure titled “Arizona State Implementation Plan Revision for the Nogales PM 2.5 Nonattainment Area”
. I ncluded within Appendix A of this document is “Primary PM 2.5 and Secondary Precursor Emis sion s Inventories for 2008 and 2010,” July 26, 2013, Arizona Department of Environmental Quality (ADEQ), hereafter referred to as Appendix A. Because much of the detailed emissions inventory information and analyses for the submittal document are located w ithin Appendix A, this document is the substantive f ocus of this proposal. 6 A public hearing was conducted on September 3, 2013 after 30 days prior notice. See Enclosure 4 of the submittal for public notice documentation and public hearing transcripts.This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

9 Section 172(c)(3) of the CAA requires states to submit a comprehensive, accurate, and current inventory of actual emissions for each nonattainment area. EPA’s requirements for an emissions inventory for the PM 2.5 NAAQS are set forth in 40 CFR 51.1008. F or the P M 2.5 N A A Q S , the pollu t a nts t o be invento r ied a re
P M 2.5 and PM 2.5 precursors (i.e., nitrogen oxides (NO x ), volatile organic compounds (VOCs), sulfur dioxide (SO 2 ), and ammonia (NH 3 ) )
. 7
A. Nogales Area Emission s Inventor ies Arizona’s submitted Nogales are a emission s inventor ies provide annual 2008 and 2010 emission s estimates (tons per year) for PM 2.5 and PM 2.5 precursors (i.e., N O x , VOCs , SO 2 , and
NH 3 )
. T he source categories include non - road mobile sources, non

point sources, on

- road mobile sources , and point or stationary

sources . A summary of the Nogales area emissions i nventor ies are
p rovided below in Table s 1 and 2. T he detailed Nogales emissions inventor ies are found in A ppendix A of A rizona ’s submittal
. Table 1 , 2008 Nogales Nonattainment Area Emissions Inventor ies ( tons per year ) Source Category PM 2.5 VOC NO x SO 2 NH 3 Non
- Road Mobile 13.1 158.6 142.7 2.8 0.1 Non
- Point 396 .0 902.7 48.8 28.3 22.9

7 Emissions Inventory Guidance for Implementation of Ozone and Particulate Matter National Ambient Air Quality Standards (NAAQS) and Regional Haze Regulations, EPA

- 454/R

- 05

- 001, August 2005, updated November 2005. http://www.epa.gov/ttn/chief/eidocs/eiguid/eiguidfinal_nov2005.pdf
.This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

10 On

- Road Mobile 25.1 426.2 912.9 7.5 14.4 Point/Stationary 1.4 3.3 11.0 0.5 0 TOTALS 435.6 1490.8 1115.4 39.1 37.4 Entries are rounded consistent with submittal , as such , total s may vary due to rounding
. Source: Appendix A, Table 6.1.

Table 2 , 2010 Nogales Nonattainment Area Emissions Inventor ies ( tons per year ) Source Category PM 2.5 VOC NO x SO 2 NH 3 Non
- Road Mobile 13.1 159.6 142.7 2.8 0.1 Non
- Point 399.2 912.6 49.3 28.3 23.0 On

- Road Mobile 20.1 369.5 743.7 4.6 13.0 Point/Stationary 1.4 3.3 11.0 0.5 0 TOTALS 433.9 1445.0 946.8 36.2 36.1 Entries are rounded consistent with submittal , as such , totals may vary due to rounding
. Source: Appendix A, Table 6.1. The Nogales area primary PM 2.5 and secondary precursor emission s inventories for 2008 and 2010 includ e emi s sion s

e st i mat e s f r om non - road mobile, non

- point, o n - ro a d mob i le

sou rc es , a nd point or stationary sou rce s. ADEQ derived these emission s inventories for 2008 and 2010 from emissions data for Santa Cruz County, Arizona, in EPA’s 2008 Nat ional Emission s Inventory (NEI) v ersions 1.5 and 2.0. See Appendix A, section 3. Using 2008 NEI county

- level emissions estimates, ADEQ allocated
the share of nonattainment area emissions from county level estimates by one of three characteristics and relative percentages: (1) human

- induced activities/source categories wereThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

11 allocated by nonattainment area population share, 66.1 percent; (2) location

- based act ivities/source categories were allocated by nonattainment area share of land area, 6.15 percent; and , (3) location specific sources, such as point sources, were fully allocated to the nonattainment area, as applicable. See Appendix A, Table 3.1 for populat ion and land area allocation ratios;
and , see Appendix A, section 2 for their derivation. In the case of on

- road mobile source emissions, ADEQ estimated Santa Cruz
C ounty emissions separately from the NEI data using EPA’s on

road emissions factor model MOV ES2010b and then allocated county
- level emissions to the Nogales area by population share. ADEQ developed 2 010 emissions inventory estimates for the Nogales nonattainment area from 2008 levels by applying a 2008 to 2010 population

- based growth rate of 1.1 percent, relative activity levels, or held emissions estimates constant, as applicable. See Appendix A, section 3.4 for ADEQ’s 2010 emissions inventories discussion.
In sum , we find this methodology reasonable and based on reliable estimates of population and land area. We concur with the overall methodology, basis for allocating emissions and allocation calculations used to produce the Nogales emissions inventories for PM 2.5 and the precursor pollutants. ADEQ’s population estimates are Arizona Department of AdministrationThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

12 estimates that have been reconciled with U.S. Census figures. We have verified the land area allocation ratio using geographical information system applicat ions. Please see our Technical Support Document (TSD) for our detailed review and discussion of Arizona’s emission s inventories methodology and results. In our review, we compared the ADEQ estimates for PM 2.5 and the precursor pollutants with the subseque n t and final release of the 2008 NEI v ersion 3.0. The 2011 NEI version 1.0 was released on September 30, 2013 and was not available for use by ADEQ. We expected to f ind nominal differences between the NEI versions (1.5 and 2.0) used by ADEQ and the final v ersion (3.0) of the NEI based on corrections and re

- estimates from one version to the
next . EPA released t he 2008 NEI version 3.0 in March 2013 prior to Arizona’s submittal of the Nogales emissions inventor ies in September 2013. While we did not require ADEQ to use the 2008 NEI version 3.0 given their emissions inventories were already drafted, we review ed the submittal against 2008 NEI version 3.0 to ensure that any subsequent v ersion 3 .0 corrections or updates

are nominal changes to the submitted emissi ons inventor ies
. W e f ound that the submitted P M 2.5 , N H 3 , N O x , and S O 2 emission s inventories , four of five emissions inventories, show little or no variance from the 2008 NEI version 3.0 emissions inventory,This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

13 our comparison data base. The submitted VOC emissions inventory shows a small under

- report ing of 3

- 10 percent when compared either across the Santa Cruz C ounty 2008 NEI v ersion 3 .0 baseline emissions estimates, or to the submitted Nogales area emissions estimates. This small overall underestimate of VOC emissions is not significant, and becomes less significant when considered against an adjusted increase provided by the submitted VOC on

road mobile emissions inventory compared to the reference 2008
NEI o n - road mobile VOC emissions estimates. In this way, we consider the adjusted difference in the submitted overall VOC emission inventory and our reference 2008 NEI version 3.0 VOC emissions inventory to be closer to 3 percent rather than 10 percent , a small variance in the context of the overall PM 2.5 emissions inventories
. For our detailed review, please see our
TSD within the docket of this rulemaking
. In conclusion, EPA has reviewed the results, procedures , and methodologie s Arizona used to produc e the 2008 and 2010 Nogales area PM 2.5 and PM 2.5 precursor e missions inventor ie s and finds th at these emissions inventor ies meet the requirements of the CAA and EPA guidance
. Consequently, we propose to approve the submitted P M 2.5 , N H 3 , N O x , S O 2 , and VOC emissions inventories as
meet ing the CAA’s s ection 172(c)(3) requirement to provide a comprehensive, accurate , and current inventory of actualThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

14 emissions for the Nogales nonattainment area
. 8
I V . Proposed Action EPA is proposing to approve the 2008 and 2010 Nogales nonattainment area PM 2.5 and PM 2.5 precursor emission s inventories submitted by Arizona on September 6 , 2013
. In doing so, EPA has determined that Arizona’s submittal is consistent with section s 110 and 172(c)(3) of the CAA.
V. Statutory and Executive Order Reviews Under the Clean Air Act, the Administrator is required to approve a SIP submission that complies with the provisions of the Act and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA’s role is to approve State choices, provided that they meet the criteria of the Clean Air Act. Accordingly, this action merely approves State law as meeting Federal requirements and does not impose additional requirements bey ond those imposed by State law. For that reason, this action:

• 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);

8 Please note that our review and proposed approval of Arizona’s PM 2.5 emission s inventories for the Nogales nonattainment area, their data sourc es, and methodologies are specific to this submittal and may not be applicable to all PM 2.5 nonattainment areas and the related PM 2.5 and precursor emissions inventories.This document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

15 • does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);

• is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) ;

• does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Public Law 104

- 4);

• does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);

• is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997);

• is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001);

• is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the Clean Air Act;
and

• d oes not provide EPA with the discretionary authority to address disproportionate human health or environmentalThis document is a prepublication version signed by Regional Administrator Jared Blumenfeld on August 20, 2014.

We have taken steps to ensure the accuracy of this version, but it is not the official version.

16 effects with practical, appropriate, and legally permissible methods under Executive Order 12898 (59 FR 7629, February 16, 1994). In addition, this action 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 c osts on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference , Intergovernmental relations, Nitrogen dioxide, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Ammonia, Volatile organic compounds.

___ _______________ _______________________ ____ Date d Jared Blumenfeld , Regional Administrator, Region IX
.