```

[Federal Register Volume 79, Number 217 (Monday, November 10, 2014)]
[Proposed Rules]
[Pages 66663-66670]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-26627]

=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2014-0700; FRL-9919-12-Region 6]

Approval and Promulgation of Implementation Plans; Arkansas; 
Revisions for the Regulation and Permitting of Fine Particulate Matter

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve portions of three revisions to the Arkansas State 
Implementation Plan (SIP) submitted by the Arkansas Department of 
Environmental Quality on July 26, 2010; November 6, 2012; and September 
10, 2014. Together, these three submittals update the Arkansas SIP such 
that the ADEQ has the authority to implement the current National 
Ambient Air Quality Standards (NAAQS) and regulate and permit emissions 
of fine particulate matter (particulate matter with diameters less than 
or equal to 2.5 micrometers (PM2.5)) and its precursors 
through the Arkansas PSD program. The September 10, 2014, submittal is 
a request for parallel processing of revisions proposed by the ADEQ on 
August 22, 2014. The EPA is proposing to find that the Arkansas 
Prevention of Significant Deterioration (PSD) New Source Review (NSR) 
SIP meets all Clean Air Act (CAA or the Act) requirements for 
PM2.5 PSD. EPA is also proposing to approve a portion of the 
December 17, 2007 SIP submittal for the PM2.5 NAAQS 
pertaining to interstate transport of air pollution and PSD. EPA is 
proposing these actions under section 110 and part C of the CAA.

DATES: Comments must be received on or before December 10, 2014.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R06-
OAR-2014-0700, by one of the following methods:
    www.regulations.gov. Follow the online instructions for 
submitting comments.
     Email: Ms. Adina Wiley at wiley.adina@epa.gov.
     Mail or Delivery: Ms. Adina Wiley, Air Permits Section 
(6PD-R), Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, 
Dallas, Texas 75202-2733.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2014-0700. 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 the 
disclosure of which is restricted by statute. Do not submit information 
through http://www.regulations.gov or email, if you believe that it is 
CBI or otherwise protected from disclosure. The http://www.regulations.gov Web site is an ``anonymous access'' system, which 
means that EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an email 
comment directly to EPA without going through http://www.regulations.gov, your email 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 along with any disk or CD-ROM 
submitted. 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 and any form of encryption and should 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: The index to the docket for this action is available 
electronically at www.regulations.gov and in hard copy at EPA Region 6, 
1445 Ross Avenue, Suite 700, Dallas, Texas. While all documents in the 
docket are listed in the index, some information may be publicly 
available only at the hard copy location (e.g., copyrighted material), 
and some may not be publicly available at either location (e.g., CBI). 
To inspect the hard copy materials, please schedule an appointment with 
the person listed in the FOR FURTHER INFORMATION CONTACT paragraph 
below or Mr. Bill Deese at 214-665-7253.

FOR FURTHER INFORMATION CONTACT: Ms. Adina Wiley (6PD-R), Air Permits 
Section, Environmental Protection Agency, Region 6, 1445 Ross Avenue 
(6PD-R), Suite 1200, Dallas, TX 75202-2733. The telephone number is 
(214) 665-2115. Ms. Wiley can also be reached via electronic mail at 
wiley.adina@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA.

Table of Contents

I. Background for Our Proposed Action
    A. General Information on SIPs
    B. Preconstruction Review and Permitting Programs
    C. Summary of State Submittals
    1. The July 26, 2010 Submittal
    2. The November 6, 2012 Submittal
    3. The September 10, 2014 Submittal
    4. What is the EPA not addressing?
II. The EPA's Analysis of the State Submittals
    A. Revisions to the Arkansas PSD Program To Address 
PM2.5 Permitting
    1. The NSR PM2.5 Implementation Rule
    2. The PM2.5 PSD Increment--SILs--SMC Rule

[[Page 66664]]

    3. Interstate Transport of Air Pollution and PSD
    B. Impacts on Existing Federal Implementation Plan Clocks
    C. General Updates to the Arkansas SIP
III. Proposed Action
IV. Statutory and Executive Order Reviews

I. Background for Our Proposed Action

A. General Information on SIPs

    Section 110 of the CAA requires states to develop air pollution 
regulations and control strategies to ensure that air quality meets the 
National Ambient Air Quality Standards (NAAQS) established by the EPA. 
The NAAQS are established under section 109 of the CAA and currently 
address six criteria pollutants: Carbon monoxide, nitrogen dioxide, 
ozone, lead, particulate matter, and sulfur dioxide. A SIP is a set of 
air pollution regulations, control strategies, other means or 
techniques, and technical analyses developed by the state, to ensure 
that air quality in the state meets the NAAQS. It is required by 
section 110 and other provisions of the CAA. A SIP protects air quality 
primarily by addressing air pollution at its point of origin. SIPs can 
be extensive, containing state regulations or other enforceable 
documents, and supporting information such as emissions inventories, 
monitoring networks, and modeling demonstrations. Each state must 
submit regulations and control strategies to the EPA for approval and 
incorporation into the federally-enforceable SIP.

B. Preconstruction Review and Permitting Programs

    The Act at section 110(a)(2)(C) requires SIPs to include 
preconstruction review and permitting programs applicable to certain 
new and modified stationary sources of air pollutants. These 
requirements apply in attainment and nonattainment areas and cover both 
major and minor new sources and modifications. Collectively, these SIP 
requirements are referred to as the New Source Review (NSR) SIP. The 
CAA NSR SIP program is composed of three separate programs: Prevention 
of significant deterioration (PSD), nonattainment new source review 
(NNSR), and Minor NSR. PSD is established in part C of title I of the 
CAA and applies in areas that meet the NAAQS--``attainment areas''--as 
well as areas where there is insufficient information to determine if 
the area meets the NAAQS--``unclassifiable areas.'' The NNSR SIP 
program is established in part D of title I of the CAA and applies in 
areas that are designated as ``nonattainment areas'' because they are 
not in attainment of the NAAQS. The Minor NSR SIP program addresses 
construction or modification activities for sources that will not emit, 
or have the potential to emit, above certain thresholds and thus do not 
qualify as ``major.'' Minor NSR applies regardless of the designation 
of the area in which a source is located. EPA regulations governing the 
criteria that states must satisfy for EPA approval of the NSR programs 
as part of the SIP are contained in 40 CFR sections 51.160-51.166.

C. Summary of State Submittals

    The ADEQ submitted a collection of revisions to the Arkansas SIP on 
July 26, 2010; November 6, 2012; and September 10, 2014. Together, 
these revisions update the Arkansas SIP to implement the requirements 
of the 1997 and 2006 PM2.5 NAAQS, regulate emissions of 
PM2.5 and its precursors through the Arkansas PSD program, 
and make general updates throughout the entirety of the Arkansas SIP to 
address grammar, formatting, and updates to incorporation by reference 
dates. Additionally, on December 17, 2007, Arkansas submitted a letter 
certifying that its SIP addressed the CAA requirements for interstate 
transport of air pollution (CAA 110(a)(2)(D)(i)) for the 1997 
PM2.5 NAAQS. These SIP submittals are available in the 
electronic docket found in the www.regulations.gov Web site (Docket 
number EPA-R06-OAR-2014-0700).
1. The July 26, 2010 Submittal
    On December 5, 2008, the Arkansas Pollution Control and Ecology 
Commission (APC&EC) adopted revisions to the Regulation 19--Regulations 
of the Arkansas Plan of Implementation for Air Pollution Control. 
Governor Beebe submitted these regulations as a revision to the 
Arkansas SIP in a letter dated July 26, 2010. On November 23, 2010, 
Teresa Marks, Director of Arkansas Department of Environmental Quality 
(ADEQ), provided a clarification letter regarding the July 26, 2010 
submittal. This clarification letter was a resubmission of the SIP 
revision resulting from the previous submittal containing one incorrect 
hardcopy and electronic copy of the SIP revision. As part of this 
action, the EPA is addressing the following revisions contained in the 
July 26, 2010 submittal that were adopted on December 5, 2008, 
effective January 25, 2009:
     Non-substantive revisions to Regulation 19, Chapter 1 to 
correct formatting, clarify the incorporation by reference dates, and 
clarify acronyms.
     Substantive revisions to Regulation 19, Chapter 2 to add 
new definition for ``PM2.5'' and ``Title I modification'' 
and to revise the definition of ``Volatile organic compounds''. Non-
substantive revisions to correct formatting, clarify the incorporation 
by reference dates, and clarify acronyms.
     Non-substantive revisions to Regulation 19, Chapter 3 to 
correct formatting.
     Non-substantive revisions to Regulation 19, Chapter 5 to 
correct formatting and clarify acronyms.
     Non-substantive revisions to Regulation 19, Chapter 6 to 
correct formatting and clarify acronyms.
     Non-substantive revisions to Regulation 19, Chapter 7 to 
clarify incorporation by reference dates.
     Non-substantive revisions to Regulation 19, Chapter 10 to 
correct formatting and clarify acronyms.
     Non-substantive revisions to Regulation 19, Chapter 11 to 
correct formatting.
     Non-substantive revisions to Regulation 19, Chapter 13 to 
correct formatting and clarify acronyms.
2. The November 6, 2012 Submittal
    On June 22, 2012, the APC&EC adopted revisions to Regulation 9--
Permit Fee Regulations, Regulation 19--Regulations of the Arkansas Plan 
of Implementation for Air Pollution Control, and Regulation 26--
Regulations of the Arkansas Operating Air Permit Program. On October 
26, 2012, APC&EC adopted additional revisions to Regulation 19. 
Governor Beebe submitted these regulations as a revision to the 
Arkansas SIP in a letter dated November 6, 2012. As part of this 
action, the EPA is addressing the following revisions contained in the 
November 6, 2012 submittal that were adopted on June 22, 2012, and 
October 26, 2012, effective July 9, 2012, and November 18, 2012, 
respectively:
     Substantive revision to Regulation 19, Chapter 1 to 
address greenhouse gases (GHGs).
     Substantive revisions to Regulation 19, Chapter 2 to add 
new definition for ``CO2 equivalent emissions'' and revise 
the definition of ``Federally regulated pollutant''.
3. The September 10, 2014 Submittal
    On September 10, 2014, Teresa Marks, Director of the ADEQ, 
submitted a request for parallel processing of proposed AR SIP 
revisions to Regulation 19--Regulations of the Arkansas Plan of 
Implementation for Air Pollution Control. As part of this action, the 
EPA is addressing the following revisions

[[Page 66665]]

contained in the September 10, 2014, request for parallel processing:
     Substantive revisions to Regulation 19, Chapter 2 to add a 
new definition for ``PM2.5 emissions'' and to revise 
existing definitions for ``NAAQS,'' ``particulate matter emissions,'' 
``PM2.5,'' and ``VOC'' as well as other non-substantive 
revisions throughout the Definitions to correct formatting and grammar.
     Substantive revisions to Regulation 19, Chapter 5 to 
specify that no person shall cause or permit the construction or 
modification of equipment which would cause or allow any ambient air 
increment in the PSD program to be exceeded.
     Substantive revisions to Regulation 19, Chapter 9 to 
provide for the authority to regulate PM2.5 and its 
precursors through the Arkansas PSD program.
     New Regulation 19, Appendix B to provide the National 
Ambient Air Quality Standards List.
4. What is the EPA not addressing?
    States have the obligation to adopt and submit regulations for the 
EPA's review and approval into the federally enforceable SIP. The EPA 
has an obligation under the CAA to address each submittal from the 
state. However, we are not obligated to address all portions of a 
submittal at once. Where the EPA determines that a provision is 
independent of another, we have the discretion to address the submitted 
provisions separately. Accordingly, the EPA is taking no action at this 
time on the following revisions submitted by the ADEQ. As indicated 
below, we have determined that each of the submitted provisions is 
separate from the PSD program and not necessary for PSD implementation.
     The EPA is taking no action at this time on the 
Substantive revisions to Regulation 19, Chapter 4 to revise the Minor 
NSR permitting thresholds that were submitted on July 26, 2010. The 
action we are taking today will substantively revise the Arkansas PSD 
program to provide for regulation and permitting of PM2.5 
and its precursors. We are also making non-substantive updates to the 
remainder of the Arkansas SIP. Our analysis today is not relevant to 
the Arkansas Minor NSR permitting program and the provisions on which 
we are reviewing and acting can operate separately from the Arkansas 
Minor NSR Program. Therefore, the EPA is taking no action on the 
substantive revisions to add provisions under the following new 
Sections: Reg. 19.414--Operational Flexibility-Applicant's Duty to 
Apply for Alternative Scenarios; Reg. 19.415--Changes Resulting in No 
Emissions Increases; Reg. 19.416--Permit Flexibility; and Reg. 19.417--
Registration; and the non-substantive revisions to correct formatting, 
clarify the incorporation by reference dates, and clarify acronyms. We 
note that the revisions to the Arkansas Minor NSR Program at Regulation 
19, Chapter 4 submitted on July 26, 2010, will be addressed separately 
by the EPA in a later action.
     The EPA is taking no action at this time on the revisions 
to the Insignificant Activities List in Regulation 19, Appendix A that 
were submitted on July 26, 2010 and November 6, 2012. Regulation 19, 
Appendix A is part of the Arkansas Minor NSR program and will be 
addressed with the pending revisions to Regulation 19, Chapter 4.
     The EPA is taking no action at this time on the Fee 
Regulation provisions at Regulation 9, Chapter 5 submitted on November 
6, 2012. The EPA will address the fee provisions in a separate action 
at a later time. The provisions on which we are reviewing and acting 
can operate independent of the fee provisions. Therefore, the EPA is 
taking no action on the substantive revisions to Regulation 9, Chapter 
5 to replace the current Fee Regulation contained in the Arkansas SIP, 
which include substantive revisions to address fee requirements for 
carbon dioxide and methane, as well as, non-substantive revisions to 
correct formatting.
     The EPA is taking no action at this time on the November 
6, 2012, substantive revisions to Regulation 19, Chapter 4 to address 
GHGs in the Arkansas Minor NSR program. These revisions will be 
addressed with the remainder of the pending revisions to the Arkansas 
Minor NSR program at a later date.
     The EPA is taking no action at this time on the November 
6, 2012, substantive revisions to Regulation 26, Chapter 3 to address 
GHG permitting and the non-substantive revisions to Regulation 26, 
Chapter 4 to correct formatting and clarify the incorporation by 
reference dates. Regulation 26 is the Arkansas Title V program.
     The EPA is taking no action at this time on the revisions 
to the Arkansas PSD Program to provide for GHG PSD PAL permitting 
adopted by the state on June 28, 2013, effective on July 27, 2013. 
These revisions were submitted to EPA on January 7, 2014. The submittal 
included revisions to the Arkansas Regulation 19, Chapter 9, sections 
19.904(A)(1), 19.904(E)(3), and 19.904(G)(1). These revisions were 
solely to implement the GHG PSD PAL revisions. Since the Supreme Court 
of the United States rendered its decision on June 23, 2014, in Utility 
Air Regulatory Group (UARG) v. EPA (No. 12-1146), the EPA does not find 
it appropriate to take action on provisions implementing permitting 
provisions for GHG PSD PALs at this time. The EPA will address this 
submittal from the state in a separate action at a later date.
    The following table summarizes which regulatory provisions the EPA 
is taking action on in today's proposed approval.

                                         Table 1--Summary of the Individual Revisions to Each Section Evaluated
--------------------------------------------------------------------------------------------------------------------------------------------------------
               Section                         Title                 Date submitted to EPA               Adopted by State                Comments
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 9, Chapter 5.............  Air Permit Fees........  November 6, 2012................  June 22, 2012 and October 26,    No action at this
                                                                                                  2012.                            time.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 1............  Title, Intent, and       July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       Purpose.                                                                                    action.
                                                              ------------------------------------------------------------------------------------------
                                                               November 6, 2012................  June 22, 2012 and October 26,    Evaluated in this
                                                                                                  2012.                            action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 2............  Definitions............  July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                                                                                                                   action.
                                                              ------------------------------------------------------------------------------------------
                                                               November 6, 2012................  June 22, 2012 and October 26,    Evaluated in this
                                                                                                  2012.                            action.
                                                              ------------------------------------------------------------------------------------------

[[Page 66666]]

 
                                                               September 10, 2014 request for    August 22, 2014................  Evaluated in this
                                                                parallel processing.                                               action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 3............  Protection of the        July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       National Ambient Air                                                                        action.
                                       Quality Standards.
                                                              ------------------------------------------------------------------------------------------
                                                               September 10, 2014 request for    August 22, 2014................  Evaluated in this
                                                                parallel processing.                                               action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 4............  Minor Source Review....  July 26, 2010...................  December 5, 2008...............  No action at this
                                                                                                                                   time.
                                                              ------------------------------------------------------------------------------------------
                                                               November 6, 2012................  June 22, 2012 and October 26,    No action at this
                                                                                                  2012.                            time.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 5............  General Emissions        July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       Limitations Applicable                                                                      action.
                                       to Equipment.
                                                              ------------------------------------------------------------------------------------------
                                                               September 10, 2014 request for    August 22, 2014................  Evaluated in this
                                                                parallel processing.                                               action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 6............  Upset and Emergency      July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       Conditions.                                                                                 action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 7............  Sampling, Monitoring,    July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       and Reporting                                                                               action.
                                       Requirements.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 8............  111(D) Designated                                      Not part of the Arkansas SIP.
                                       Facilities.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 9............  Prevention of            July 26, 2010...................  December 5, 2008...............  Approved by EPA on
                                       Significant                                                                                 April 2, 2013, at 78
                                       Deterioration.                                                                              FR 19596.
                                                              ------------------------------------------------------------------------------------------
                                                               November 6, 2012................  June 22, 2012 and October 26,    Approved by EPA on
                                                                                                  2012.                            April 2, 2013, at 78
                                                                                                                                   FR 19596.
                                                              ------------------------------------------------------------------------------------------
                                                               January 7, 2014.................  June 28, 2014..................  No action at this
                                                                                                                                   time.
                                                              ------------------------------------------------------------------------------------------
                                                               September 10, 2014 request for    August 22, 2014................  Evaluated in this
                                                                parallel processing.                                               action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 10...........  Regulations for the      July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       Control of Volatile                                                                         action.
                                       Organic Compounds in
                                       Pulaski County.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 11...........  Major Source Permitting  July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                       Procedures.                                                                                 action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 13...........  Stage I Vapor Recovery.  July 26, 2010...................  December 5, 2008...............  Evaluated in this
                                                                                                                                   action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 14...........  CAIR NOX Ozone Season    July 26, 2010...................  December 5, 2008...............  Approved by EPA on
                                       Trading Program                                                                             April 17, 2014, at 78
                                       General Provisions.                                                                         FR 21631.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Chapter 15...........  Regional Haze..........  July 26, 2010...................  December 5, 2008...............  Approved by EPA on
                                                                                                                                   March 12, 2012, at 77
                                                                                                                                   FR 14604.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Appendix A...........  Insignificant            July 26, 2010...................  December 5, 2008...............  No action at this
                                       Activities List.                                                                            time.
                                                              -------------------------------------------------------------------
                                                               November 6, 2012................  June 22, 2012 and October 26,
                                                                                                  2012.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 19, Appendix B...........  National Ambient Air     September 10, 2014 request for    August 22, 2014................  Evaluated in this
                                       Quality Standards List.  parallel processing.                                               action.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Regulation 26, Chapter 3............  Requirements for a       November 6, 2012................  June 22, 2012 and October 26,    No action at this
                                       Permit, Applicability.                                     2012.                            time.
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 66667]]

 
Regulation 26, Chapter 4............  Applications for         November 6, 2012................  June 22, 2012 and October 26,    No action at this
                                       Permits.                                                   2012.                            time.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    We have evaluated the July 26, 2010, November 6, 2012, and 
September 10, 2014, SIP submissions for whether they meet the CAA and 
40 CFR Part 51, and are consistent with the EPA's interpretation of the 
relevant provisions. Today's proposed action and the accompanying 
Technical Support Document (TSD) present our rational for proposing 
approval of these regulations as meeting the minimum federal 
requirements for the adoption and implementation of the NAAQS and 
required PSD permitting elements. The EPA is parallel processing the 
revisions proposed on August 22, 2014, based on the request submitted 
on September 10, 2014. This means that the EPA is proposing approval at 
the same time that the ADEQ is completing the public comment and 
rulemaking process at the state level. The September 10, 2014, SIP 
revision request will not be complete and will not meet all the 
adequacy criteria until the state public process is complete and the 
SIP revision is submitted as a final adoption with a letter from the 
Governor or Governor's designee. The EPA is proposing to approve the 
SIP revision request after completion of the state public process and 
final submittal.

II. The EPA's Analysis of the State Submittals

A. Revisions to the Arkansas PSD Program To Address PM2.5 
Permitting

    The ADEQ adopted revisions to the Arkansas SIP and the Arkansas PSD 
Program on August 22, 2014. The ADEQ submitted these adopted revisions 
to the EPA for parallel processing on September 10, 2014. These ADEQ 
revisions address the regulatory requirements of the EPA's 
implementation rules for the 1997 and 2006 PM2.5 NAAQS as 
applicable to the State's general regulatory program and its PSD 
permitting program. Specifically, the EPA promulgated two rules 
establishing both required and optional implementation regulations for 
PM2.5: The May 16, 2008 final rule for Implementation of the 
New Source Review (NSR) Program for Particulate Matter Less than 2.5 
Micrometers (PM2.5) (referred to as the NSR PM2.5 
Implementation Rule), 73 FR 28321, and the October 20, 2010 final rule 
for Prevention of Significant Deterioration (PSD) for Particulate 
Matter Less than 2.5 Micrometers (PM2.5)--Increments, 
Significant Impact Levels (SILs) and Significant Monitoring 
Concentration (SMC) (referred to as the PM2.5 PSD 
Increments--SILs--SMC Rule), 75 FR 64864. Today's proposed action and 
the accompanying Technical Support Document (TSD) present our rationale 
for proposing approval of this submission as part of the Arkansas PSD 
SIP by finding that the Arkansas PSD SIP includes the requirements to 
address these two rulemakings concerning the PM2.5 NAAQS.\1\
---------------------------------------------------------------------------

    \1\ There are no PM2.5 nonattainment areas in 
Arkansas; therefore ADEQ is not required to adopt or submit a NNSR 
program for PM2.5 implementation as part of the Arkansas 
SIP.
---------------------------------------------------------------------------

 1. The NSR PM2.5 Implementation Rule
    a. How does the September 10, 2014, revision to the Arkansas PSD 
program address the requirements of the NSR PM2.5 
Implementation Rule?
    The EPA's final NSR PM2.5 Implementation Rule required 
states to submit applicable SIP revisions to the EPA no later than May 
16, 2011, to address this Rule's PSD and NNSR SIP requirements. Based 
on the analysis presented below and in our accompanying TSD, the EPA is 
proposing to find that the September 10, 2014, revision to the Arkansas 
PSD SIP includes all of the PSD requirements of the 2008 final NSR 
PM2.5 Implementation Rule for the following reasons:
    (1) Regulation of Direct PM2.5 and Precursors: The 
Arkansas SIP at Regulation 19, Chapter 3 and Appendix B gives the ADEQ 
the authority to implement the 2006 PM2.5 NAAQS for purposes 
of PSD. Further, the September 10, 2014, revisions to the definition of 
``Regulated NSR pollutant'' at Regulation 19.903(B) identify that 
direct emissions of PM2.5 and its precursors, NOX 
and SO2, are regulated under the Arkansas PSD program.
    (2) Establish SERs: The Arkansas PSD program at Regulation 
19.904(A)(2) incorporates by reference the significant emission rates 
for direct PM2.5 emissions and precursors of 
PM2.5 as promulgated by EPA at 40 CFR 52.21(b)(23) on May 
16, 2008.
    (3) Condensable PM10/PM2.5 Emissions: The 
Arkansas PSD program includes condensable emissions of PM10 
and PM2.5 for purposes of PSD permitting at Regulation 
19.903(B)(6). The language submitted on September 10, 2014, is 
consistent with the federal requirements promulgated on May 16, 2008 at 
40 CFR 51.166(b)(49)(vi) and corrected by EPA on October 25, 2012 at 40 
CFR 51.166(b)(49)(i)(a).
b. Litigation on the May 16, 2008 PM2.5 NSR Implementation 
Rule
    On January 4, 2013, the U.S. Court of Appeals, in Natural Resources 
Defense Council v. EPA, 706 F.3d 428 (D.C. Cir.), issued a judgment 
that remanded the EPA's 2007 and 2008 rules implementing the 1997 
PM2.5 NAAQS, including the NSR PM2.5 
Implementation Rule. The court ordered the EPA to ``repromulgate these 
rules pursuant to Subpart 4 consistent with this opinion.'' Id. at 437. 
Subpart 4 of Part D, Title 1 of the CAA establishes additional 
provisions for particulate matter nonattainment areas.
    The 2008 NSR PM2.5 Implementation Rule addressed by the 
court decision described above, promulgated NSR requirements for 
implementation of PM2.5 in both nonattainment areas (NNSR) 
and attainment/unclassifiable areas (PSD). As the requirements of 
Subpart 4 only pertain to nonattainment areas, the EPA does not 
consider the portions of the 2008 rule that address requirements for 
PM2.5 in attainment and unclassifiable areas to be affected 
by the court's opinion. Moreover, the EPA does not anticipate the need 
to revise any PSD requirements promulgated in the 2008 NSR 
PM2.5 Rule in order to comply with the court's decision. 
Accordingly, the EPA's proposed approval of Arkansas's SIP revisions 
with respect to the PSD requirements promulgated by the 2008 NSR 
PM2.5 Rule does not conflict with the court's opinion.
    The Court's decision with respect to the NNSR requirements 
promulgated by the 2008 NSR PM2.5 Rule also does not affect 
the EPA's action on the present proposed approval, as this proposed 
approval does not address any of the PM2.5 nonattainment NSR 
requirements.

[[Page 66668]]

2. The PM2.5 PSD Increment--SILs--SMC Rule
a. How does the September 10, 2014 revision to the Arkansas PSD program 
satisfy the Required Increment Component of the PM2.5 
Increment--SILs--SMC Rule?
    The EPA finalized the PM2.5 PSD Increment--SILs--SMC 
Rule to provide additional regulatory requirements under the PSD SIP 
program regarding the implementation of the PM2.5 NAAQS. See 
75 FR 64864. The PM2.5 PSD Increment--SILs--SMC Rule 
required states to submit SIP revisions to the EPA by July 20, 2012, 
adopting provisions equivalent to or at least as stringent as the PSD 
increments and associated implementing regulations. Specifically, the 
SIP rule requires a state's submitted PSD SIP revision to adopt and 
submit for EPA approval the PM2.5 increments pursuant to 
section 166(a) of the CAA to prevent significant deterioration of air 
quality in areas meeting the NAAQS and associated implementing 
regulations. More detail on the PM2.5 PSD Increment--SILs--
SMC Rule can be found in the EPA's October 20, 2010 final rule. See 75 
FR 64864.
    With respect to the required increment component of the 
PM2.5 Increment--SILs--SMC Rule, the ADEQ incorporated by 
reference the federal requirements for PM2.5 increment at 40 
CFR 52.21(c) as promulgated by EPA on October 20, 2011. The ADEQ also 
incorporated by reference the required definitions to implement the 
PM2.5 increment promulgated by the EPA on October 20, 2011, 
such as baseline area at 40 CFR 52.21(b)(15)(i), major source baseline 
date at 40 CFR 52.21(b)(14)(i), minor source baseline date at 40 CFR 
52.21(b)(14)(ii) and (iii), source impact analysis requirements at 40 
CFR 52.21(k)(1) and requirements for sources impacting Federal Class I 
areas at 40 CFR 52.21(p). The EPA is proposing to find that the 
Arkansas PSD NSR SIP now includes the PM2.5 increments and 
associated implementing regulations, and these increments and 
implementing regulations are applicable requirements for sources and 
modifications that are major for PM2.5 and/or the identified 
precursors of SO2 and NOX.
b. How does the September 10, 2014, revision to the Arkansas PSD 
program address the Optional SILs and SMC Components of the 
PM2.5 Increment--SILs--SMC Rule?
    EPA's October 20, 2010, PM2.5 Increment--SILs--SMC Rule 
also provided that States could discretionarily choose to adopt and 
submit for EPA approval SILs used as a screening tool to evaluate the 
impact a proposed new major source or major modification may have on 
the NAAQS or PSD increment, and a SMC (also a screening tool) to 
determine the subsequent level of ambient air monitoring data gathering 
required for a PSD permit application for emissions of 
PM2.5.
    On January 22, 2013, the U.S. Court of Appeals granted a request 
from the EPA to vacate and remand to the EPA portions of the federal 
PSD regulations (40 CFR 51.166(k)(2) and 52.21(k)(2)) setting forth 
provisions for implementing SILs for PM2.5 so that the EPA 
could reconcile the inconsistency between the regulatory text and 
certain statements in the preamble to the 2010 final rule. Sierra Club 
v. EPA, 705 F.3d 458, 463-64 (D.C. Cir. 2013). The court declined to 
vacate the different portion of the federal PSD regulations (40 CFR 
51.165(b)(2)) for implementing SILs for PM2.5 that did not 
contain the same inconsistency in the regulatory text. Id. at 465-66. 
The court further vacated the portions of the PSD regulations (40 CFR 
51.166(i)(5)(i)(c) and 52.21(i)(5)(i)(c)) implementing a 
PM2.5 SMC, finding that the EPA lacked legal authority to 
adopt and use the PM2.5 SMC to exempt permit applicants from 
the statutory requirement to compile and submit ambient monitoring 
data. Id. at 468-69. On December 9, 2013, the EPA issued a good cause 
final rule formally removing the affected SILs and SMC provisions from 
the CFR. See 78 FR 73698.
    The September 10, 2014 revision to the Arkansas PSD program does 
not include the optional PM2.5 SMC and SIL provisions. 
Unless explicitly identified in Regulation 19.904(A), the Arkansas PSD 
SIP only incorporates by reference the federal PSD requirements at 40 
CFR 52.21(a)(2) through (bb) as in effect on November 29, 2005. Because 
Regulation 19.904(A) does not explicitly identify 40 CFR 52.21(k)(2) or 
52.21(i)(5)(i)(c) as promulgated by the EPA on October 20, 2011 as 
being part of the Arkansas PSD program, the EPA proposes to find that 
the Arkansas PSD program does not include the PM2.5 SIL and 
SMC provisions that have been vacated by the Courts and removed by the 
EPA on December 9, 2013.
3. Interstate Transport of Air Pollution and PSD
    CAA 110(a)(2)(D)(i)(I) calls for the SIP to prohibit emissions to 
other states which will (1) contribute significantly to nonattainment 
of the NAAQS or (2) interfere with maintenance of the NAAQS. CAA 
110(a)(2)(D)(i)(II) calls for the SIP to prohibit emissions to other 
states which will (1) interfere with measures required to prevent 
significant deterioration or (2) interfere with measures to protect 
visibility. The December 17, 2007 SIP submittal addressed CAA 
110(a)(2)(D)(i)(I) and (II) for the 1997 PM2.5 NAAQS. We 
previously acted on (1) the contribution to nonattainment and 
interference with maintenance portion (August 29, 2013, 78 FR 53269) 
and (2) the visibility protection portion (March 12, 2012, 77 FR 
14604). We neglected to act on the portion pertaining to interstate 
transport of air pollution and PSD.
    The CAA 110(a)(2)(D)(i)(II) interstate transport requirement for 
PSD is met when new major sources and major modifications in a state 
are subject to a comprehensive EPA-approved PSD permitting program that 
(1) applies to all regulated NSR pollutants and (2) satisfies the 
requirements of EPA's PSD implementation rules. This is because a fully 
approved PSD program necessarily needs to fully consider source impacts 
on other States. Because these criteria will be met with our approval 
of the Arkansas PSD SIP revision, we are proposing to approve the 
portion of the December 17, 2007 SIP submittal that addresses 
interstate transport of air pollution and PSD for the 1997 
PM2.5 NAAQS (CAA 110(a)(2)(D)(i)(II)).

B. Impacts on Existing Federal Implementation Plan Clocks

    The EPA previously promulgated a partial approval and partial 
disapproval of the Arkansas infrastructure SIP for the 1997 ozone NAAQS 
and the 1997 and 2006 PM2.5 NAAQS on August 20, 2012 (77 FR 
50033, August 20, 2012). The partial disapproval was based on the 
State's failure to submit the required PSD SIP revisions from the May 
16, 2008 PM2.5 NSR Implementation Rule. The EPA's partial 
disapproval of required elements of the Act started a federal 
implementation plan (FIP) clock for the required 2008 NSR 
PM2.5 Implementation Rule revisions, which expired on 
September 19, 2014.
    The EPA on May 22, 2014, made a separate finding of failure to 
submit for the State of Arkansas based on the State's failure to submit 
revisions to the SIP incorporating the required component of the 
October 20, 2010 PM2.5 PSD Increment--SILs--SMC Rule. See 79 
FR 29354. The EPA's finding of failure to submit established a 24-month 
deadline by which time the EPA must promulgate a FIP for Arkansas to 
address the PM2.5 PSD requirements for increment and the 
associated implementing regulations, unless the State submits and the 
EPA approves a SIP revision that corrects the deficiency

[[Page 66669]]

before the EPA promulgates a FIP for the State, in accordance with 
section 110(c)(1).
    The EPA's proposed action today preliminarily finds that the 
September 10, 2014, submittal for parallel processing satisfies all 
required elements for PM2.5 PSD implementation as required 
through EPA's May 16, 2008, and October 20, 2010, final rules. 
Accordingly, finalization of today's proposal will stop the two FIP 
clocks on the lack of these elements in the Arkansas PSD program and 
remove any FIP obligation from EPA for the PM2.5 PSD 
implementation.

C. General Updates to the Arkansas SIP

    The July 26, 2010 and November 6, 2012 submittals, included 
numerous updates throughout the Arkansas SIP at Regulation 19 to update 
incorporation by reference dates, and correct grammar and formatting. 
The accompanying TSD provides a line-item analysis of each of these 
revisions. Our analysis demonstrates that these revisions are non-
substantive in nature. Thus EPA is proposing approval.
    The September 10, 2014 submittal contains new Appendix B to 
Regulation 19 that is intended to establish the specific NAAQS that are 
implemented through the Arkansas SIP and the Arkansas PSD program. 
Appendix B captures the ambient air quality standards promulgated in 40 
CFR Part 50 as of July 27, 2012. Although Appendix B as submitted is 
approvable, this incorporation by reference date does not capture the 
2012 particulate matter primary NAAQS revision (78 FR 3086). Under CAA 
110(a)(1), the State is allowed 3 years from the date of promulgation 
of national ambient air quality primary standard to submit a plan which 
provides for implementation, maintenance, and enforcement of such 
primary standard in each air quality control region (or portion 
thereof) within such State. Therefore, Arkansas is required to submit 
revisions to address the 2012 particulate matter primary NAAQS revision 
by December 14, 2015.

III. Proposed Action

    The EPA proposes to approve the revisions to the Arkansas SIP 
submitted on July 26, 2010, November 6, 2012, and September 10, 2014, 
because we have made the preliminary determination that these SIP 
packages were adopted and submitted in accordance with the CAA and EPA 
regulations regarding implementation of the PM2.5 NAAQS. 
Therefore, under section 110 and part C of the Act and for the reasons 
stated above, the EPA proposes to approve the following revisions to 
the Arkansas SIP:
     Revisions to Regulation 19, Chapter 1 submitted on July 
26, 2010 and November 6, 2012;
     Revisions to Regulation 19, Chapter 2 submitted on July 
26, 2010, November 6, 2012, and September 10, 2014, with the exception 
of the GHG Biomass Deferral provision submitted as part of the 
definition of CO2e on November 6, 2012;
     Revision to Regulation 19, Chapter 3 submitted on July 26, 
2010 and September 10, 2014;
     Revisions to Regulation 19, Chapter 5 submitted on July 
26, 2010 and September 10, 2014;
     Revisions to Regulation 19, Chapter 6 submitted on July 
26, 2010;
     Revisions to Regulation 19, Chapter 7 submitted on July 
26, 2010;
     Revisions to Regulation 19, Chapter 9 submitted on 
September 10, 2014;
     Revisions to Regulation 19, Chapter 10 submitted on July 
26, 2010;
     Revisions to Regulation 19, Chapter 11 submitted on July 
26, 2010;
     Revisions to Regulation 19, Chapter 13 submitted on July 
26, 2010
     New Regulation 19, Appendix B submitted on September 10, 
2014; and
     A portion of a December 17, 2007 SIP submittal addressing 
interstate transport of air pollution and PSD for the 1997 
PM2.5 NAAQS (CAA 110(a)(2)(D)(i)(II)).
    The EPA is also proposing to find that the Arkansas PSD NSR SIP 
meets all the CAA PSD requirements for implementing the 1997 and 2006 
PM2.5 NAAQS, including the PM2.5 PSD requirements 
contained in the federal regulations as of December 9, 2013, including 
regulation of NOX and SO2 as PM2.5 PSD 
precursors, regulation of condensables, and PM2.5 
increments. As such, upon finalization of today's proposed rulemaking, 
the EPA will stop the two FIP clocks that are currently running on the 
Arkansas PSD program pertaining to PM2.5 PSD implementation.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Clean Air 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 proposes to approve 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 (Pub. L. 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, 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, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, this proposed rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), nor 
will it 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, Nitrogen Oxides, Particulate 
matter, Reporting and recordkeeping requirements, Sulfur oxides, and 
Volatile organic compounds.

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

[[Page 66670]]

    Dated: October 29, 2014.
Samuel Coleman,
Acting Regional Administrator.
[FR Doc. 2014-26627 Filed 11-7-14; 8:45 am]
BILLING CODE 6560-50-P
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