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[Federal Register Volume 79, Number 100 (Friday, May 23, 2014)]
[Proposed Rules]
[Pages 29726-29729]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-12024]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R06-OAR-2013-0400; FRL-9911-40-Region 6]

Approval and Promulgation of Implementation Plans; Texas; Control 
of Air Pollution From Nitrogen Compounds

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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[[Page 29727]]

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve revisions to the Texas State Implementation Plan (SIP) 
submitted by the Texas Commission on Environmental Quality (TCEQ) for 
Control of Air Pollution from Nitrogen Compounds. Specifically, three 
separate revisions were submitted to EPA with letters dated April 13, 
2012, May 8, 2013, and May 14, 2013, respectively. We are proposing to 
approve these three submittals in accordance with the federal Clean Air 
Act (the Act, CAA).

DATES: Comments must be received on or before June 23, 2014.

ADDRESSES: Submit your comments identified by Docket No. EPA-R06-OAR-
2013-0400 by one of the following methods:
    www.regulations.gov. Follow the on-line instructions.
     Email: Mr. Alan Shar at shar.alan@epa.gov.
     Mail or delivery: Air Planning Section Chief (6PD-L), 
Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, Dallas, 
Texas 75202-2733.
    Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2013-0400. The EPA's policy is that all comments received 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 information claimed to be 
Confidential Business Information (CBI) or other information the 
disclosure of which is restricted by statute. Do not submit information 
through www.regulations.gov or email, if you believe that it is CBI or 
otherwise protected from disclosure. The 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 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 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 75202-2733. 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.

FOR FURTHER INFORMATION CONTACT: Mr. Alan Shar (6PD-L), Air Planning 
Section, (214) 665-6691, shar.alan@epa.gov.

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

Outline

I. Background
    A. What actions are we proposing?
    1. The April 13, 2012 Submittal
    2. The May 8, 2013 Submittal
    3. The May 14, 2013 Submittal
II. Evaluation
    A. What is our evaluation of the April 13, 2012, submittal?
    B. What is our evaluation of the May 8, 2013, submittal?
    C. What is our evaluation of the May 14, 2013, submittal?
III. Proposed Action
IV. Statutory and Executive Order Reviews

I. Background

A. What actions are we proposing?

    We are proposing to approve three separate revisions to the Texas 
SIP submitted to EPA for review and evaluation with three letters dated 
April 13, 2012, May 8, 2013, and May 14, 2013, from the TCEQ. These 
three separate submittals are described below.
1. The April 13, 2012 Submittal
    In a letter dated October 25, 2010, EPA requested that the TCEQ 
withdraw and revise its System Cap Trading (SCT) rules under 30 TAC 
Chapter 101 from SIP consideration. The EPA proposed disapproval of the 
TCEQ's SCT program on November 18, 2010, (75 FR 70654); and 
consequently, the TCEQ repealed and withdrew its SCT program rules from 
EPA's consideration as a SIP revision. Because of the TCEQ's repeal and 
withdrawal of the SCT program rule from the Texas SIP, on April 8, 
2011, (76 FR 19739) EPA withdrew its proposed disapproval of the Texas 
SCT program rules. The 30 TAC Chapter 117 rules of NOX 
cross-reference the SCT program rules of 30 TAC Chapter 101. Given the 
cross-reference linkage between the two rules, later, on April 13, 
2012, the TCEQ submitted revisions to the 30 TAC Chapter 117 rule to 
EPA for review and evaluation.
    The revisions to 30 TAC Chapter 117 remove references to the term 
``system cap trading'' for utility electric generation sources 
operating in major ozone nonattainment areas and the East and Central 
Texas Counties. The revisions concern sections 117.1020, 117.1120, 
117.1220, 117.3020, and 117.9800. The State's adopted rule was 
published on April 13, 2012, at 37 Texas Register 2655.
    The intended effect of this removal is that the April 13, 2012, 
revisions to 30 TAC Chapter 117 and their corresponding provisions of 
30 TAC Chapter 101 will become consistent. See section 1 of the 
Technical Support Document (TSD) prepared in conjunction with this 
rulemaking action for more information.
2. The May 8, 2013 Submittal
    With a letter dated May 8, 2013, the TCEQ submitted revisions to 
the 30 TAC Chapter 117, Subchapter D, Division 2, Dallas Fort Worth 
(DFW) Eight-Hour Ozone Nonattainment Area, Minor Sources. The revisions 
specifically concern sections 117.2103, 117.2130, 117.2135, and 
117.2145. Halliburton Energy Services, Inc., located in Carrollton, 
Texas 75006 petitioned the TCEQ to be allowed an additional exemption 
in the rules in 30 TAC Chapter 117, Subchapter D, Division 2 that limit 
NOX emissions from minor sources in the DFW 8-Hour ozone 
nonattainment area. The TCEQ approved the petition, and initiated the 
rulemaking process. The State's adopted rule was published on April 26, 
2013, at 38 Texas Register 2634. See section 2 of the TSD for more 
information. On May 8, 2013, the TCEQ submitted their adopted rule 
revisions to EPA, requesting EPA's evaluation and approval.
3. The May 14, 2013 Submittal
    With a letter dated May 14, 2013, the TCEQ submitted revisions to 
the 30 TAC Chapter 117 to update references to Electric Reliability 
Council of Texas, Incorporated (ERCOT) protocols and reflect changes to 
ERCOT's new Emergency Service Response (ERS) program. The ERCOT manages 
the electrical grid within the ERCOT region of Texas, with oversight by 
the Public Utility Commission of Texas.

[[Page 29728]]

Specifically, the May 14, 2013, submittal concerns revisions to the 
definition of emergency situation in section 117.10 Definitions. The 
State's adopted rule was published on April 26, 2013, at 38 Texas 
Register 2623. See section 3 of the TSD for more information. On May 
14, 2013, the TCEQ submitted their adopted rule revisions to EPA, 
requesting EPA's evaluation and approval.

II. Evaluation

    Our evaluation of these three submittals is as follows:

A. What is our evaluation of the April 13, 2012, submittal?

    The SCT program was created to provide additional flexibility to 
facilities subject to emission limits specified in 30 TAC Chapter 117. 
Through use of emission credits generated from each affected source one 
could determine the compliance of these sources with their applicable 
NOX control requirements. See section 117.9800.
    The TCEQ later repealed and withdrew its SCT program rules from 30 
TAC Chapter 101. The April 13, 2012, revisions to Chapter 117 remove 
references to SCT from sections 117.1020, 117.1120, 117.1220, 117.3020, 
and 117.9800. The removal of references to SCT from Chapter 117 rules 
will make both the trading rules of Chapter 101 and the NOX 
control rules of Chapter 117 consistent, and will clarify the available 
compliance options for electric generating units in Texas. See EPA's 
November 1, 2011, letter to the TCEQ. The revision is administrative in 
nature. Therefore, we are proposing to approve the April 13, 2012, 
revisions to Chapter 117 into the Texas SIP.

B. What is our evaluation of the May 8, 2013, submittal?

    In response to a petition from Haliburton, the TCEQ adopted a 
revision to their SIP that exempts stationary diesel engines that are 
used exclusively for product testing and personnel training, operate 
less than 1,000 hours per year on a rolling 12-month basis, and meet 
applicable EPA's Tier emission standards for non-road engines listed in 
40 CFR 89.112(a), Table 1 (October 23, 1998) in effect at the time of 
installation, modification, reconstruction, or relocation. In addition, 
they have included monitoring and recordkeeping requirements for 
demonstrating compliance. We have included a section by section review 
of the affected provisions of Chapter 117 (sections 117.2103, 117.2130, 
117.2135, 117.2145) of the May 8, 2013, submittal in the TSD. See 
section 2, and Appendix A of the TSD.
    Halliburton operates a stationary, reciprocating internal 
combustion engine (the drawworks engine) for the purposes of employee 
training and product testing at its Carrollton, Texas Plant. The 
drawworks engine is used for lifting and lowering casing into the test 
well at this plant. The test well is used solely for purposes of 
employee training and down-hole product testing, and is not associated 
with the actual oil or gas production operations. Engines used to raise 
and lower down-hole equipment in actual oil and gas operations in the 
field, which the drawworks engine is designed to simulate, are 
typically not subject to similar Chapter 117 testing requirements 
because they are not installed at one location long enough to trigger 
the definition of a stationary internal combustion engine in section 
117.10. According to the records, the drawworks engine was installed in 
2010, and the emissions testing results are compliant with the federal 
Tier 3 emission standards for non-road engines listed in 40 CFR 
89.112(a), Table 1.
    According to section 110(l) of the Act, each revision to an 
implementation plan submitted by a State under this chapter shall be 
adopted by such State after reasonable notice and public hearing. The 
Administrator shall not approve a revision of a plan if the revision 
would interfere with any applicable requirement concerning attainment 
and reasonable further progress, or any other applicable requirement of 
this chapter. The TCEQ submitted a 110(l) analysis and additional 
information as a part of the May 8, 2013, submittal. Also, see the 
April 26, 2013, issue of Texas Register at 38 TexReg 2634.
    As a part of this analysis we are considering the following 
factors: (a) The engine has been shown to meet the Tier 3 emission 
standards for non-road engines listed in 40 CFR 89.112(a), Table 1; (b) 
NOX emissions reductions from the engine were not relied 
upon in the DFW attainment demonstration SIP revision for creditable 
reductions; (c) this unit operates less than 1,000 hours per year; (d) 
actual NOX emissions from the engine is calculated to be 
0.87 tons per year (tpy) which is substantially below the 50 tpy 
threshold; (e) the engine is dedicated exclusively to employee training 
and product testing activities, and is not used for the actual oil and 
gas production operations; (f) section 117.2135(e) states that engine's 
operating time must be monitored with a non-resettable elapsed run time 
meter to demonstrate compliance with the operating restrictions in 
117.2103(10); and (g) section 117.2145(b) requires that the records be 
maintained for at least five years and must be made available upon 
request to the State, EPA, or any local air pollution control agency 
having jurisdiction. Furthermore, the adopted exemption is narrow in 
scope and consistent with the similar existing exemptions for 
stationary diesel engines located at minor sources, such as stationary 
engines used in research and testing and stationary engines used for 
purposes of performance verification and testing. See sections 
117.2003(a)(2)(B) and 117.2003(a)(2)(C). Therefore, we are proposing to 
agree with the TCEQ's explanation and the reasons as to why expansion 
of this partial exemption, in itself, does not adversely impact the 
status of the Texas' progress towards attainment of the 1997 eight-hour 
ozone standard, will not interfere with control measures, and will not 
prevent reasonable further progress toward attainment of the ozone 
standard. For these reasons, we find their 110(l) analysis adequate for 
the purpose of evaluation of the proposed revisions to 30 TAC Chapter 
117. Therefore, we are proposing to approve the May 8, 2013, revisions 
to Chapter 117 into Texas SIP.

C. What is our evaluation of the May 14, 2013, submittal?

    The May 14, 2013, revisions to the 30 TAC Chapter 117 update 
references to ERCOT's definition of ``emergency situation'' and its new 
ERS program that replaced the former Emergency Interruptible Load 
Service Program. The changes made by ERCOT are intended to promote 
electric power reliability during energy emergencies by allowing 
operation of generators for the purpose of selling power to the 
electric grid under limited circumstances. The revision to the 
definition of ``emergency situation'' in section 117.10(15) will make 
the 30 TAC Chapter 117 definitions of ``emergency situation'' 
consistent with the ERCOT's Nodal Protocols Section 2 (Definitions and 
Acronyms) of June 1, 2012. The adopted amendment does not increase the 
number of sources that could qualify for exemption under the Chapter 
117 rules, or increase the frequency or duration of the operation 
during an emergency situation as compared to the approved SIP. 
Therefore, the adopted rulemaking will not contribute to nonattainment 
with the ozone NAAQS and is therefore consistent with section 110(l) of 
the Act. Therefore, we are proposing to approve the May 14, 2013 
revisions to Chapter 117 into Texas SIP.

[[Page 29729]]

III. Proposed Action

    Today, we are proposing to approve the April 13, 2012, revisions to 
30 TAC Chapter 117 sections 117.1020, 117.1120, 117.1220, 117.3020, and 
117.9800 to remove reference to SCT program rule from these sections. 
We are proposing to approve the May 8, 2013, revisions to 30 TAC 
Chapter 117 sections 117.2103, 117.2130, 117.2135, and 117.2145, to 
allow for partial exemption of oil and gas drawworks engines used for 
personnel training and product testing from NOX control 
requirements. We are also proposing to approve the May 14, 2013, 
revisions to 30 TAC Chapter 117 section 117.10(15), to update the 
definition of emergency. We are proposing to approve these revisions to 
30 TAC Chapter 117 into Texas SIP.

IV. 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. If a portion of the plan revision meets 
all the applicable requirements of this chapter and Federal 
regulations, the Administrator may approve the plan revision in part. 
42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, 
EPA's role is to approve state choices that meet the criteria of the 
Act, and to disapprove state choices that do not meet the criteria of 
the Act. Accordingly, this proposed action approves state law as 
meeting Federal requirements and does not impose additional 
requirements beyond those imposed by state law. For that reason, this 
proposed 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;
     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); and
     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.

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

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Hydrocarbons, 
Incorporation by reference, Intergovernmental relations, Nitrogen 
oxides, Reporting and recordkeeping requirements.

    Dated: May 13, 2014.
Ron Curry,
Regional Administrator, Region 6.
[FR Doc. 2014-12024 Filed 5-22-14; 8:45 am]
BILLING CODE 6560-50-P
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