```

[Federal Register Volume 76, Number 97 (Thursday, May 19, 2011)]
[Proposed Rules]
[Pages 28942-28944]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-12443]

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2011-0460; FRL-9309-5]

Revisions to the California State Implementation Plan, Sacramento 
Metropolitan Air Quality Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: EPA is proposing both an approval and a limited approval and 
limited disapproval of permitting rules submitted for the Sacramento 
Metropolitan Air Quality Management District (SMAQMD or District) 
portion of the California State Implementation Plan (SIP). The District 
is required under Parts C and D of title I of the Clean Air Act (CAA) 
to adopt and implement SIP-approved New Source Review (NSR) and 
Prevention of Significant Deterioration (PSD) permit programs. These 
rules update and revise the District's NSR and PSD permitting programs 
for new and modified major sources of air pollution. If EPA finalizes 
the limited approval and limited disapproval action, as proposed, then 
a sanctions clock would be triggered. We are taking comments on this 
proposal and plan to follow with a final action.

DATES: Any comments must arrive by June 20, 2011.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2011-0460, by one of the following methods:
    1. Federal eRulemaking Portal: http://www.regulations.gov. Follow 
the on-line instructions.
    2. E-mail: R9airpermits@epa.gov.
    3. Mail or deliver: Gerardo Rios (Air-3), 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 http://www.regulations.gov, including any personal information provided, 
unless the comment includes Confidential Business 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 http://www.regulations.gov or e-mail. http://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 the 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 of special characters, 
any form of encryption, and be free of any defects or viruses.
    Docket: EPA has established a docket for this action under EPA-R09-
OAR-2011-0460. Generally, documents in the docket for this action are 
available electronically at http://www.regulations.gov or in hard copy 
at EPA Region IX, 75 Hawthorne Street, San Francisco, California. While 
all documents are listed at http://www.regulations.gov, some 
information may be publicly available only at the hard copy location 
(e.g., copyrighted material, large maps, multi-volume reports), 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: Laura Yannayon, EPA Region IX, (415) 
972-3534, yannayon.laura@epa.gov.

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

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rules?
II. EPA's Evaluation and Action
    A. How is EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Public Comment and Proposed Action
III. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal, including the 
dates they were adopted by the local air agency and submitted by the 
California Air Resources Board (CARB).

[[Page 28943]]

                                            Table 1--Submitted Rules
----------------------------------------------------------------------------------------------------------------
                                                Rule
                 Local agency                    No.              Rule title              Amended     Submitted
----------------------------------------------------------------------------------------------------------------
SMAQMD.......................................     214  Federal New Source Review......     10/28/10     12/07/10
SMAQMD.......................................     203  Prevention of Significant            1/27/11      1/28/11
                                                        Deterioration.
----------------------------------------------------------------------------------------------------------------

    On January 13, 2011 and May 12, 2011, EPA determined that the 
submittals for SMAQMD Rules 214 and 203, respectively, met the 
completeness criteria in 40 CFR Part 51, Appendix V, which must be met 
before formal EPA review.

B. Are there other versions of these rules?

    There are no previous versions of Rules 203 or 214 in the SIP, but 
SIP approved Rule 202 (New Source Review), which these rules will 
replace in the SIP, was approved on June 19, 1985 (50 FR 25417).
    The SMAQMD originally adopted new Rule 203 on February 26, 1991, 
and CARB submitted the rule to EPA on October 30, 2001, however EPA has 
not taken action on this submittal. While we can act on only the most 
recently submitted version, we have reviewed materials provided with 
the previous submittal.

C. What is the purpose of the submitted rules?

    Section 110(a) of the CAA requires states to submit regulations 
that include a pre-construction permit program for certain new or 
modified stationary sources of pollutants, including a permit program 
as required by Parts C and D of Title I of the CAA.
    The purpose of District Rule 214 (Federal New Source Review) and 
Rule 203 (Prevention of Significant Deterioration) is to implement a 
federal preconstruction permit program for new and modified sources. 
These two new rules will replace in its entirety, the existing SIP 
approved NSR/PSD programs contained in Rule 202. The basic NSR program 
requirements from Rule 202 have been included in Rule 214, with 
revisions made to clarify that the rule only applies to major sources 
and all modifications at such sources, major agricultural sources and 
only applies to pollutants for which the District is designated as 
nonattainment. In accordance with the District's May 5, 2010 (75 FR 
24409) reclassification as a severe ozone nonattainment area, the rule 
lowers the BACT \1\ and offset applicability thresholds to 25 tpy or 
less, and increases the required offset ratio to 1.3 to 1. Pursuant to 
the 2002 NSR Reforms adopted by EPA (67 FR 80186), the rule adds 
provisions for calculating emission increases from proposed 
modifications by adding a definition for ``Federal Major 
Modifications'' which incorporates the necessary provisions to perform 
this calculation. The rule does not contain a provision for the 
implementation of Plantwide Applicability Limits (PALs) as required by 
40 CFR 51.165(f).
---------------------------------------------------------------------------

    \1\ While the District uses the term BACT as the level of 
control required, a review of the definition has shown that it is 
equivalent to the requirements for federal LAER.
---------------------------------------------------------------------------

    The basic PSD program requirements from Rule 202 have been included 
in Rule 203. This rule mainly incorporates by reference the federal PSD 
program as codified in 40 CFR 52.21 which only applies to new major 
sources and major modifications at existing major sources. The rule 
also revises several terms used within 40 CFR 52.21 to replace NSR 
Reform provisions with pre-reform language and requirements. (67 FR 
80186)

II. EPA's Evaluation and Action

A. How is EPA evaluating the rules?

    The relevant statutory provisions for our review of the submitted 
rules include Parts C and D of Title I of the CAA, section 
110(a)(2)(C), section 110(l) and section 182(d). Section 110(a) 
requires a pre-construction permit programs for certain new or modified 
stationary sources of pollutants, including a permit program as 
required by Parts C and D of Title I, while section 110(l) precludes 
EPA approval of SIP revisions that would interfere with any applicable 
requirement concerning attainment and reasonable further progress or 
any other applicable requirement of the Act. Section 182(d) (together 
with section 182(f) for NOX), requires NSR SIPs in 
``severe'' nonattainment areas to define ``major sources'' and ``major 
modifications'' to be sources that emit 25 tpy or more of VOC or 
NOX, and have an offset ratio of at least 1.3 to 1. In 
addition, we have reviewed the submitted rules for compliance with EPA 
implementing regulations for NSR, including 40 CFR 51.160 through 40 
CFR 51.166.

B. Do the rules meet the evaluation criteria?

    EPA has reviewed the submitted rules in accordance with the Rule 
Evaluation criteria described above. The TSD for this action contains a 
complete discussion of our evaluation. EPA is proposing to find that 
these rules meet the statutory requirements for SIPs as specified in 
sections 110(a), 110(l), 182(d) and 193 of the CAA. In addition, except 
for the deficiencies noted in the TSD and summarized in the Proposed 
Action section of this notice, we are proposing to find that the rules 
meet the regulatory requirements of 40 CFR 51.160 through 40 CFR 
51.166. EPA is proposing to find that it is acceptable for SMAQMD to 
not incorporate the NSR Reform provisions of 40 CFR 51.165 and 51.166 
into their SIP approved NSR programs because the same level of control 
will be required for modified sources, with or without inclusion of 
these provisions in the SIP, and SMAQMD's program will not be any less 
stringent than the federal program.
    The TSD has more information on our evaluation.

C. Public Comment and Proposed Action

    For the reasons given above, under CAA section 110(k)(3) and 
301(a), we are proposing a limited approval and limited disapproval of 
Rule 214 because, although it would strengthen the SIP and meets the 
applicable requirements for SIPs in general, it contains certain 
deficiencies related to NSR SIPs in particular that prevent our full 
approval. The primary deficiencies pertain to missing definitions, the 
removal of public notice requirements for the minor source program from 
the SIP, and missing provisions pursuant to 40 CFR 51.165(a)(5)(ii) and 
40 CFR 51.307(b)(2). Please refer to the TSD for this action for 
additional information. The deficiencies in Rule 214 can be remedied by 
the District by revising Rule 214 to provide the missing definitions, 
and necessary provisions pursuant to the 40 CFR part 51 sections cited 
above. The minor source public notice program deficiency can be 
remedied by either adding such provisions to Rule 201 or 214, 
submitting an analysis showing why a

[[Page 28944]]

minor NSR program for minor sources is not needed, submitting an 
approvable justification for why a chosen level of public notice is 
appropriate, or submitting local District Rule 202 (State New Source 
Review) to EPA for SIP approval. If EPA finalizes the limited approval 
and limited disapproval action, as proposed, then a sanctions clock, 
and EPA's obligation to promulgate a Federal implementation plan, would 
be triggered because the revisions to the District rule for which a 
limited approval and limited disapproval is proposed is required under 
the 8-hour ozone standard.
    Because EPA has determined that Rule 203 fulfills all relevant 
requirements, we are proposing to fully approve it as described in 
section 110(k)(3) of the Act. We will accept comments from the public 
on this proposal for the next 30 days. Unless we receive convincing new 
information during the comment period, we intend to publish a final 
action that will incorporate these rules into the federally enforceable 
SIP.

III. 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 beyond 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);
     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
     Does not provide EPA with the discretionary authority to 
address disproportionate human health or environmental effects with 
practical, appropriate, and legally permissible methods under Executive 
Order 12898 (59 FR 7629, February 16, 1994).

    In addition, this 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, Incorporation by 
reference, Intergovernmental relations, Ozone, Particulate matter, 
Reporting and recordkeeping requirements, Volatile organic compounds.

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

    Dated: May 13, 2011.
Keith Takata,
Acting Regional Administrator, Region IX.
[FR Doc. 2011-12443 Filed 5-18-11; 8:45 am]
BILLING CODE 6560-50-P
```