17304 Federal Register / Vol. 78, No. 55 / Thursday, March 21, 2013 / Proposed Rules 

best interest rate available at the lowest 

possible cost to the borrower. 

The proposed change in review time 

should not alter the current quality of 

review of the loan file or the quality of 

the Direct Endorsement lender approval 

process. FHA guidance, issued in 

accordance with 24 CFR 203.3(b)(2), 

already requires the lender to certify 

that their underwriter(s) have the 

qualifications, expertise, and experience 

to underwrite mortgage loans in 

accordance with FHA requirements. 

Given the certification required of 

lenders, the shift in the timeframe for 

review may in fact result in enhanced 

lender accountability; that is, the lender 

will place more emphasis on ensuring 

that their underwriting staff is 

sufficiently trained prior to requesting 

Direct Endorsement authority. Properly 

trained underwriters will help to 

increase the number of loans that are 

found to be acceptable, resulting in an 

even higher percentage of loan files that 

meet FHA policies and guidelines. 

FHA analyzed data for mortgage loans 

that were submitted for review during 

the period beginning October 1, 2009 

through June 30, 2012. The data 

demonstrated that 86.7 percent of all 

loans reviewed during this time period, 

and 90.5 percent of all loans reviewed 

year to date in FY 2012, were found to 

meet FHA policies and guidelines and 

were subsequently endorsed. In 

addition, of the lenders entering the 

Direct Endorsement review process 

during the October 1, 2009 through June 

30, 2012 timeframe, 48.6 percent did not 

receive an unacceptable rating on any 

loan submitted for review, while 28 

percent of lenders had only one loan 

rated unacceptable and 10.9 percent of 

lenders had two loans rated 

unacceptable. Overall, 87.4 percent of 

lenders had two or fewer loans rated 

unacceptable. Currently, in FY 2012, the 

percentage of lenders with two or fewer 

loans rated unacceptable has increased 

to 93.3 percent and is expected to 

continue to improve. 

When material violations of FHA 

policies and procedures are uncovered 

during the loan file review, FHA will 

notify the lender that a preliminary 

assessment, based on file 

documentation, indicates that the loan 

contains material findings such that 

FHA is exposed to an unacceptable level 

of risk. FHA will provide the lender 

with an opportunity to present missing 

information or documentation to 

address the review findings and permit 

subsequent submission for 

endorsement. As is the current practice, 

if the lender is unable to adequately 

respond (or fails to respond) to the 

material findings, FHA will notify the 

lender that the loan is not eligible for 

endorsement. 

The lender will have satisfied the preendorsement review requirements 

necessary to be approved for 

unconditional Direct Endorsement 

authority once FHA has reviewed and 

found acceptable the requisite number 

of loan files pursuant to 24 CFR 

203.3(b)(4). 

III. Solicitation of Comment 

Comment is solicited on the proposed 

shift in the timeframe for conducting its 

pre-endorsement review of the loans 

originated by prospective Direct 

Endorsement lenders from prior to the 

lender closing each loan to before FHA’s 

endorsement of the mortgage for 

insurance. Comment is also solicited on 

other proposals that would reduce the 

processing time and facilitate loan 

closing. 

Dated: March 12, 2013. 

Carol J. Galante, 

Assistant Secretary for Housing—Federal 

Housing Commissioner. 

[FR Doc. 2013–06110 Filed 3–20–13; 8:45 am] 

BILLING CODE 4210–67–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R10–OAR–2011–0884, FRL– 9791–7] 

Approval and Promulgation of 

Implementation Plans; Oregon: 

Infrastructure Requirements for the 

1997 and 2006 Fine Particulate Matter 

and 2008 Ozone National Ambient Air 

Quality Standards 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The EPA is proposing to 

approve the State Implementation Plan 

(SIP) submittals from the State of 

Oregon to demonstrate that the SIP 

meets the infrastructure requirements of 

the Clean Air Act (CAA) for the National 

Ambient Air Quality Standards 

(NAAQS) promulgated for fine 

particulate matter (PM2.5) on July 18, 

1997 and October 17, 2006, and for 

ozone on March 12, 2008. The EPA is 

proposing to find that the Federallyapproved provisions currently in the 

Oregon SIP meet the CAA infrastructure 

requirements for the 1997 PM2.5, 2006 

PM2.5, and the 2008 ozone NAAQS. The 

EPA is also proposing to find that the 

Federally-approved provisions currently 

in the Oregon SIP meet the interstate 

transport requirements of the CAA 

related to prevention of significant 

deterioration for the 2008 ozone 

NAAQS, and related to visibility for the 

2006 PM2.5 and 2008 ozone NAAQS. 

This action does not propose to approve 

any additional provisions into the 

Oregon SIP but is a proposed finding 

that the current provisions of the 

Oregon SIP are adequate to satisfy the 

above-mentioned infrastructure 

elements required by the CAA. 

DATES: Comments must be received on 

or before April 22, 2013. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R10– 

OAR–2011–0884, by any of the 

following methods: 

• www.regulations.gov: Follow the 

on-line instructions for submitting 

comments. 

• Email: R10- 

Public_Comments@epa.gov. 

• Mail: Kristin Hall, EPA Region 10, 

Office of Air, Waste and Toxics (AWT– 

107), 1200 Sixth Avenue, Suite 900, 

Seattle WA 98101. 

• Hand Delivery/Courier: EPA Region 

10 Mailroom, 9th Floor, 1200 Sixth 

Avenue, Suite 900, Seattle, WA 98101. 

Attention: Kristin Hall, Office of Air, 

Waste and Toxics, AWT–107. Such 

deliveries are only accepted during 

normal hours of operation, and special 

arrangements should be made for 

deliveries of boxed information. 

Instructions: Direct your comments to 

Docket ID No. EPA–R10–OAR–2011– 

0884. 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 that 

you consider to be CBI or otherwise 

protected through www.regulations.gov 

or email. The www.regulations.gov Web 

site is an ‘‘anonymous access’’ system, 

which means the 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 the 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, the EPA recommends that 

you include your name and other 

contact information in the body of your 

comment and with any disk or CD–ROM 

you submit. If the EPA cannot read your 


wreier-aviles on DSK5TPTVN1PROD with PROPOSALS
Federal Register / Vol. 78, No. 55 / Thursday, March 21, 2013 / Proposed Rules 17305 

1William T. Harnett, Director, Air Quality Policy 

Division, Office of Air Quality Planning and 

Standards. ‘‘Guidance on SIP Elements Required 

Under Sections 110(a)(1) and (2) for the 1997 8-hour 

Ozone and PM2.5 National Ambient Air Quality 

Standards.’’ Memorandum to EPA Air Division 

Directors, Regions I–X, October 2, 2007. 

2William T. Harnett, Director, Air Quality Policy 

Division, Office of Air Quality Planning and 

Standards. ‘‘Guidance on SIP Elements Required 

Under Sections 110(a)(1) and (2) for the 2006 24- 

hour Fine Particle (PM2.5) National Ambient Air 

Continued 

comment due to technical difficulties 

and cannot contact you for clarification, 

the 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: All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, e.g., CBI or other information 

the disclosure of which is restricted by 

statute. Certain other material, such as 

copyrighted material, is not placed on 

the Internet and will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy 

during normal business hours at the 

Office of Air, Waste and Toxics, EPA 

Region 10, 1200 Sixth Avenue, Seattle 

WA 98101. 

FOR FURTHER INFORMATION CONTACT: 

Kristin Hall at (206) 553–6357, 

hall.kristin@epa.gov, or the above EPA, 

Region 10 address. 

SUPPLEMENTARY INFORMATION: 

Throughout this document wherever 

‘‘we’’, ‘‘us’’ or ‘‘our’’ are used, it is 

intended to refer to the EPA. 

Information is organized as follows: 

Table of Contents 

I. Proposed Action 

II. Background 

III. CAA Sections 110(a)(1) and (2) 

Infrastructure Elements 

IV. Scope of Action on Infrastructure 

Submittals 

V. Analysis of the State’s Submittal 

VI. Scope of Proposed Action 

VII. Proposed Action 

VIII. Statutory and Executive Order Reviews 

I. Proposed Action 

The EPA is proposing to approve the 

State Implementation Plan (SIP) 

submittals from the State of Oregon to 

demonstrate that the SIP meets the 

requirements of CAA section 110(a)(1) 

and (2) for the NAAQS promulgated for 

particulate matter on July 18, 1997 and 

October 17, 2006, and for ozone on 

March 12, 2008. The EPA is proposing 

to find that the Federally-approved 

provisions currently in the Oregon SIP 

meet the following CAA section 

110(a)(2) infrastructure elements for the 

1997 PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS: (A), (B), (C), (D)(ii), (E), (F), (G), 

(H), (J), (K), (L), and (M). The EPA is also 

proposing to find that the Federallyapproved provisions currently in the 

Oregon SIP meet the requirements of 

CAA section 110(a)(2)(D)(i)(II) as it 

applies to prevention of significant 

deterioration for the 2008 ozone 

NAAQS, and CAA section 

110(a)(2)(D)(i)(II) as it applies to 

visibility for the 2006 PM2.5 and 2008 

ozone NAAQS. 

CAA section 110(a)(1) requires that 

each state, after a new or revised 

NAAQS is promulgated, review their 

SIPs to ensure that they meet the 

requirements of the ‘‘infrastructure’’ 

elements of CAA section 110(a)(2). The 

State of Oregon made multiple 

submittals to satisfy the infrastructure 

requirements for the 1997 and 2006 

PM2.5 NAAQS and the 2008 ozone 

NAAQS. On September 25, 2008, the 

State submitted to the EPA a 

certification that the State’s SIP meets 

the infrastructure obligations for the 

1997 ozone and 1997 PM2.5 NAAQS. 

Subsequently, on December 23, 2010, 

the State submitted the ‘‘Oregon SIP 

Infrastructure for Addressing the 

Interstate Transport of Ozone and Fine 

Particulate Matter’’ to address the 

requirements of CAA section 

110(a)(2)(D)(i) for multiple NAAQS, 

including the 2006 PM2.5 and 2008 

ozone NAAQS. On August 17, 2011, the 

State submitted to the EPA a 

certification that the State’s SIP meets 

the infrastructure requirements for the 

2006 PM2.5 NAAQS. Finally, on 

December 19, 2011, the State submitted 

to the EPA a certification that the State’s 

SIP meets the infrastructure 

requirements for the 2008 ozone 

NAAQS. 

At this time, the EPA is acting on the 

infrastructure submittals for the CAA 

section 110(a)(2) required elements as 

they relate to the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. This 

action does not address infrastructure 

requirements with respect to the 1997 

ozone NAAQS which the EPA 

previously approved on May 21, 2012 

(77 FR 29904). This action also does not 

address the requirements of CAA 

section 110(a)(2)(D)(i) for the 1997 PM2.5

NAAQS which have previously been 

approved by the EPA in three separate 

actions on June 9, 2011 (76 FR 33650), 

July 5, 2011 (76 FR 38997), and 

December 27, 2011 (76 FR 80747). 

In addition, this action does not 

address the requirements of CAA 

section 110(a)(2)(D)(i)(II) as it relates to 

prevention of significant deterioration 

for the 2006 PM2.5 NAAQS, which the 

EPA approved on December 27, 2011 

(76 FR 80747). This action also does not 

address the requirements of CAA 

section 110(a)(2)(D)(i)(I) for the 2006 

PM2.5 and 2008 ozone NAAQS which 

the EPA will address in a future action. 

Furthermore, the EPA interprets the 

CAA section 110(a)(2)(J) provision on 

visibility as not being triggered by a new 

NAAQS because the visibility 

requirements in part C are not changed 

by a new NAAQS. 

II. Background 

On July 18, 1997, the EPA 

promulgated a new 24-hour and a new 

annual NAAQS for PM2.5 (particles with 

an aerodynamic diameter less than or 

equal to a nominal 2.5 micrometers) (62 

FR 38652). More recently, on October 

17, 2006 (effective date December 18, 

2006), the EPA revised the standards for 

particulate matter, tightening the 24- 

hour PM2.5 standard from 65 

micrograms per cubic meter (m/m3) to 35 

m/m3, and retaining the current annual 

fine particle standard at 15 m/m3 (71 FR 

61144). On March 12, 2008, the EPA 

revised the levels of the primary and 

secondary 8-hour ozone standards to 

0.075 parts per million (73 FR 16436). 

The CAA requires State 

Implementation Plans (SIPs) meeting 

the requirements of sections 110(a)(1) 

and (2) be submitted by states within 

three years after promulgation of a new 

or revised standard. CAA sections 

110(a)(1) and (2) require states to 

address basic SIP requirements, 

including emissions inventories, 

monitoring, and modeling to assure 

attainment and maintenance of the 

standards, so-called ‘‘infrastructure’’ 

requirements. CAA section 110(a) 

imposes the obligation upon states to 

make a SIP submission to the EPA for 

a new or revised NAAQS, but the 

contents of that submission may vary 

depending upon the facts and 

circumstances. In particular, the data 

and analytical tools available at the time 

the state develops and submits the SIP 

for a new or revised NAAQS affects the 

content of the submission. The contents 

of such SIP submissions may also vary 

depending upon what provisions the 

state’s existing SIP already contains. 

To help states meet this statutory 

requirement, the EPA issued guidance 

to states. On October 2, 2007, the EPA 

issued guidance to address 

infrastructure SIP requirements for the 

1997 ozone and 1997 PM2.5 NAAQS.1

On September 25, 2009, the EPA issued 

guidance to address infrastructure SIP 

requirements for the 2006 24-hour PM2.5

NAAQS.2 These guidance documents 


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Quality Standards (NAAQS).’’ Memorandum to 

Regional Air Division Directors, Regions I–X, 

September 25, 2009. The EPA has not yet issued 

guidance to states to address the infrastructure SIP 

requirements for the 2008 ozone NAAQS. 

3For further description of EPA’s SSM Policy, 

see, e.g., a memorandum dated September 20, 1999, 

titled, ‘‘State Implementation Plans: Policy 

Regarding Excess Emissions During Malfunctions, 

Startup, and Shutdown,’’ from Steven A. Herman, 

Assistant Administrator for Enforcement and 

Compliance Assurance, and Robert Perciasepe, 

Assistant Administrator for Air and Radiation. Also, 

the EPA issued a proposed action on February 12, 

2013, titled ‘‘State Implementation Plans: Response 

to Petition for Rulemaking; Findings of Substantial 

Inadequacy; and SIP Calls to Amend Provisions 

Applying to Excess Emissions During Periods of 

Startup, Shutdown and Malfunction.’’ This 

rulemaking responds to a petition for rulemaking 

filed by the Sierra Club that concerns SSM 

provisions in 39 states’ SIPs (February 22, 2013, 78 

FR 12460). 

provide that, to the extent an existing 

SIP already meets the CAA section 

110(a)(2) requirements, states may 

submit a certification to the EPA. 

III. CAA Sections 110(a)(1) and (2) 

Infrastructure Elements 

CAA section 110(a)(1) provides the 

procedural and timing requirements for 

SIP submissions after a new or revised 

NAAQS is promulgated. CAA section 

110(a)(2) lists specific elements that 

states must meet for ‘‘infrastructure’’ SIP 

requirements related to a newly 

established or revised NAAQS. These 

requirements include SIP infrastructure 

elements such as modeling, monitoring, 

and emissions inventories that are 

designed to assure attainment and 

maintenance of the NAAQS. The 

requirements, with their corresponding 

CAA subsection, are listed below: 

• 110(a)(2)(A): Emission limits and 

other control measures. 

• 110(a)(2)(B): Ambient air quality 

monitoring/data system. 

• 110(a)(2)(C): Program for 

enforcement of control measures. 

• 110(a)(2)(D): Interstate transport. 

• 110(a)(2)(E): Adequate resources. 

• 110(a)(2)(F): Stationary source 

monitoring system. 

• 110(a)(2)(G): Emergency power. 

• 110(a)(2)(H): Future SIP revisions. 

• 110(a)(2)(I): Areas designated 

nonattainment and meet the applicable 

requirements of part D. 

• 110(a)(2)(J): Consultation with 

government officials; public 

notification; and Prevention of 

Significant Deterioration (PSD) and 

visibility protection. 

• 110(a)(2)(K): Air quality modeling/ 

data. 

• 110(a)(2)(L): Permitting fees. 

• 110(a)(2)(M): Consultation/ 

participation by affected local entities. 

The October 2, 2007 and September 

25, 2009 EPA infrastructure guidance 

clarify that two elements identified in 

CAA section 110(a)(2) are not governed 

by the three-year submission deadline of 

CAA section 110(a)(1) because SIPs 

incorporating necessary local 

nonattainment area controls are not due 

within three years after promulgation of 

a new or revised NAAQS, but rather, are 

due at the time the nonattainment area 

plan requirements are due pursuant to 

CAA section 172. These requirements 

are: (i) submissions required by CAA 

section 110(a)(2)(C) to the extent that 

subsection refers to a permit program as 

required in part D, Title I of the CAA, 

and (ii) submissions required by CAA 

section 110(a)(2)(I) which pertain to the 

nonattainment planning requirements of 

part D, Title I of the CAA. As a result, 

this action does not address 

infrastructure elements related to CAA 

section 110(a)(2)(C) with respect to 

nonattainment new source review (NSR) 

or CAA section 110(a)(2)(I). 

Furthermore, the EPA interprets the 

CAA section 110(a)(2)(J) provision on 

visibility as not being triggered by a new 

NAAQS because the visibility 

requirements in part C, Title I of the 

CAA are not changed by a new NAAQS. 

IV. Scope of Action on Infrastructure 

Submittals 

This rulemaking will not cover four 

substantive issues that are not integral 

to acting on a state’s infrastructure SIP 

submission: (i) Existing provisions 

related to excess emissions during 

periods of start-up, shutdown, or 

malfunction at sources, that may be 

contrary to the CAA and the EPA’s 

policies addressing such excess 

emissions (‘‘SSM’’) 3; (ii) existing 

provisions related to ‘‘director’s 

variance’’ or ‘‘director’s discretion’’ that 

purport to permit revisions to SIP 

approved emissions limits with limited 

public process or without requiring 

further approval by the EPA, that may 

be contrary to the CAA (‘‘director’s 

discretion’’); (iii) existing provisions for 

minor source NSR programs that may be 

inconsistent with the requirements of 

the CAA and the EPA’s regulations that 

pertain to such programs (‘‘minor source 

NSR’’); and, (iv) existing provisions for 

PSD programs that may be inconsistent 

with current requirements of the EPA’s 

‘‘Final NSR Improvement Rule,’’ 67 FR 

80186 (December 31, 2002), as amended 

by 72 FR 32526 (June 13, 2007). The 

EPA has indicated that it has other 

authority to address any such existing 

SIP defects in other rulemakings, as 

appropriate. A detailed rationale for 

why these four substantive issues are 

not part of the scope of infrastructure 

SIP rulemakings can be found in the 

EPA’s previous action to approve the 

State of Oregon 1997 ozone 

infrastructure SIP submittal (proposed 

action on February 7, 2012, 77 FR 6044; 

final action on May 21, 2012, 77 FR 

29904). 

V. Analysis of the State’s Submittal 

The State of Oregon SIP submittals 

list specific provisions of the Oregon 

Revised Statutes (ORS) Chapter 468 

Environmental Quality Generally, 

Public Health and Safety, General 

Administration; ORS Chapter 468A Air 

Quality, Public Health and Safety, Air 

Quality Control; Oregon Administrative 

Rules (OAR) Chapter 340, and the 

Oregon SIP. The specific sections are 

listed below, with a discussion of how 

the State submittals meet the 

requirements. 

110(a)(2)(A): Emission limits and other 

control measures 

CAA section 110(a)(2) requires SIPs to 

include enforceable emission limits and 

other control measures, means or 

techniques (including economic 

incentives such as fees, marketable 

permits, and auctions of emissions 

rights), as well as schedules and 

timetables for compliance, as may be 

necessary or appropriate to meet the 

applicable requirements of the CAA. 

State submittal: The State SIP 

submittals cite multiple State air quality 

laws and previously SIP-approved 

regulations to address this element for 

the 1997 PM2.5, 2006 PM2.5, and 2008 

ozone NAAQS. ORS 468A.035 ‘‘General 

Comprehensive Plan’’ provides 

authority to the Oregon Department of 

Environmental Quality (ODEQ) to 

develop a general comprehensive plan 

for the control or abatement of air 

pollution. ORS 468A.020 ‘‘Rules and 

Standards’’ gives the State 

Environmental Quality Commission 

(EQC) authority to adopt rules and 

standards to perform functions vested 

by law. ORS 468A.025 ‘‘Air Purity 

Standards’’ provides the EQC with the 

authority to set air quality standards, 

emission standards, and emission 

treatment and control provisions. ORS 

468A.040 ‘‘Permits; Rules’’ provides 

that the EQC may require permits for air 

contamination sources, type of air 

contaminant, or specific areas of the 

State. The State submittals cite the 

following additional laws and 

regulations that establish emission 

limits and pollution controls: 

• ORS 468A.045 Activities 

Prohibited Without Permit; Limit on 

Activities with Permit 

• ORS 468A.050 Classification of 

Air Contamination Sources; Registration 

and Reporting of Sources; Rules; Fees 


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4See footnote 3. 

• ORS 468A.055 Notice Prior to 

Construction of New Sources; Order 

Authorizing or Prohibiting 

Construction; Effect of No Order; 

Appeal 

• ORS 468A.070 Measurement and 

Testing of Contamination Sources; Rules 

• ORS 468A.085 Residential Open 

Burning of Vegetative Debris 

• ORS 468A.315 Emission Fees for 

Major Sources; Base Fees; Basis of Fees; 

Rules 

• ORS 468A.350–.455 Motor 

Vehicle Pollution Control 

• ORS 468A.460–.520 Woodstove 

Emissions Control 

• ORS 468A.550–.620 Field Burning 

and Propane Flaming 

• ORS 468A.625–.645

Chlorofluorocarbons and Halon Control 

• ORS 468A.650–.660 Aerosol 

Spray Control 

• ORS 468A.990 Penalties 

• OAR 340–200 General Air 

Pollution Procedures and Definitions 

• OAR 340–202 Ambient Air 

Quality Standards and PSD Increments 

• OAR 340–204 Designation of Air 

Quality Areas 

• OAR 340–222 Stationary Source 

Plant Site Emission Limits 

• OAR 340–224 Major New Source 

Review 

• OAR 340–226 General Emission 

Standards 

• OAR 340–228 Requirements for 

Fuel Burning Equipment and Fuel 

Sulfur Content 

• OAR 340–232 Emission Standards 

for VOC Point Sources 

• OAR 340–234 Emission Standards 

for Wood Products Industries 

• OAR 340–236 Emission Standards 

for Specific Industries 

• OAR 340–240 Rules for Areas 

with Unique Air Quality Needs 

• OAR 340–242 Rules Applicable to 

the Portland Area 

• OAR 340–250 General Conformity 

• OAR 340–252 Transportation 

Conformity 

• OAR 340–256 Motor Vehicles 

• OAR 340–258 Motor Vehicle Fuel 

Specifications 

• OAR 340–262 Residential 

Woodheating 

• OAR 340–266 Field Burning Rules 

(Willamette Valley) 

• OAR 340–268 Emission Reduction 

Credits 

EPA analysis: The State regulations 

identified above were previously 

approved by the EPA into the Oregon 

SIP and demonstrate that the Oregon 

SIP includes enforceable emission limits 

and other control measures to 

implement the 1997 PM2.5, 2006 PM2.5, 

and 2008 ozone NAAQS. OAR 340–200 

‘‘General Air Pollution Procedures and 

Definitions’’ defines direct PM2.5, 

nitrogen oxides (NOX) and sulfur 

dioxide (SO2) as precursors to PM2.5, 

and NOX and volatile organic 

compounds (VOCs) as precursors to 

ozone. This rule also defines significant 

emissions rates, de minimis emission 

levels, and plant site emission rates for 

air pollutants including direct PM2.5, 

NOX and SO2 as precursors to PM2.5, 

and NOX and VOCs as precursors to 

ozone. OAR 340–202 ‘‘Ambient Air 

Quality Standards and PSD Increments’’ 

includes the 1997 PM2.5, 2006 PM2.5, 

and 2008 ozone NAAQS. The EPA most 

recently approved into the State’s SIP 

revisions to OAR 340–200 and OAR 

340–202 on December 27, 2011 (76 FR 

80747). 

The State of Oregon has no areas 

designated nonattainment for the 1997 

PM2.5 standard and no areas designated 

nonattainment for the 2008 ozone 

standard. The State has two areas 

designated nonattainment for the 2006 

PM2.5 standard (Klamath Falls and 

Oakridge). However, the EPA does not 

consider SIP requirements triggered by 

the nonattainment area mandates in part 

D, Title I of the CAA to be governed by 

the submission deadline of CAA section 

110(a)(1). 

The State generally regulates 

emissions of PM2.5, PM2.5 precursors, 

and ozone precursors through its SIPapproved New Source Review (NSR) 

permitting programs, in addition to 

other rules and control programs 

identified below. The EPA most recently 

approved revisions to the State’s major 

and minor NSR permitting programs on 

December 27, 2011 (76 FR 80747), to 

regulate direct PM2.5 emissions, in 

addition to NOX and SO2 as precursors 

to PM2.5. The State’s SIP-approved major 

and minor NSR permitting programs 

regulate NOX and VOCs as precursors to 

ozone. In addition to the State’s NSR 

permitting regulations, the State’s SIP 

contains rules that establish various 

controls on emissions of particulate 

matter, NOX, SO2, and VOCs. These 

controls include rules for operational 

and work practices standards, fuel 

burning equipment and fuel sulfur 

content, grain loading, specific industry 

sectors, motor vehicle pollution, 

industrial emission management, 

residential wood heating, field burning, 

and banking of emission reduction 

credits. Based on the analysis above, the 

EPA is proposing to approve the Oregon 

SIP as meeting the requirements of CAA 

section 110(a)(2)(A) for the 1997 PM2.5, 

2006 PM2.5, and 2008 ozone NAAQS. 

The EPA is not proposing to approve 

or disapprove any existing State 

provisions with regard to excess 

emissions during startup, shutdown, or 

malfunction (SSM) of operations at a 

facility. The EPA believes that a number 

of states may have SSM provisions that 

are contrary to the CAA and existing 

EPA guidance and the EPA has recently 

proposed action to address such state 

regulations.4

The EPA is not proposing to approve 

or disapprove any existing State rules 

with regard to director’s discretion or 

variance provisions. The EPA believes 

that a number of states may have such 

provisions that are contrary to the CAA 

and existing EPA guidance (November 

24, 1987, 52 FR 45109), and the Agency 

plans to take action in the future to 

address such state regulations. In the 

meantime, the EPA encourages any state 

having a director’s discretion or 

variance provision that is contrary to the 

CAA and the EPA guidance to take steps 

to correct the deficiency as soon as 

possible. 

110(a)(2)(B): Ambient air quality 

monitoring/data system 

CAA section 110(a)(2)(B) requires 

SIPs to include provisions to provide for 

establishment and operation of ambient 

air quality monitors, collecting and 

analyzing ambient air quality data, and 

making these data available to the EPA 

upon request. 

State submittal: The State submittals 

reference ORS 468.035(a–e, m) 

‘‘Functions of the Department’’ which 

provides authority to conduct and 

supervise inquiries and programs to 

assess and communicate air conditions 

and to obtain necessary resources 

(assistance, materials, supplies, etc) to 

meet these responsibilities. In addition, 

the State references ORS 468A.070 

‘‘Measurement and Testing of 

Contamination Sources; Rules’’ which 

provides ODEQ authority to establish a 

measurement and testing program 

pursuant to rules adopted by the EQC. 

The State also references the following 

regulations pertaining to air quality 

monitoring and data: 

• OAR 340–200 General Air Quality 

Definitions 

• OAR 340–206 Air Pollution 

Emergencies 

• OAR 340–212 Stationary Source 

Testing and Monitoring 

• OAR 340–214 Stationary Source 

Reporting 

• OAR 340–216 Air Contaminant 

Discharge Permits 

• OAR 340–222 Stationary Source 

Plant Site Emission Limits 

• OAR 340–225 Air Quality 

Analysis Requirements 


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5Oregon Monitoring Network Approval Letter 

dated October 25, 2012. 

6Federal requirements pertaining to the 

permitting programs required under Subparts C and 

D of Title I of the CAA have not changed since the 

EPA last reviewed and approved changes to 

Oregon’s Federally-approved PSD and NSR SIP 

provisions. Accordingly, the EPA incorporates by 

reference the rationale for its approval of Oregon’s 

major source permitting program as discussed in its 

September 23, 2011, proposed rule and its 

December 27, 2011, final rule. See 76 FR 59090 

(September 23, 2011) and 76 FR 80747 (December 

27, 2011). 

• OAR 340–226 General Emission 

Standards 

• OAR 340–232 Emission Standards 

for VOC Point Sources 

• OAR 340–256 Motor Vehicles 

EPA analysis: A comprehensive air 

quality monitoring plan, intended to 

meet the requirements of 40 CFR part 58 

was submitted by the State to the EPA 

on December 27, 1979 (40 CFR 52.1970) 

and approved by the EPA on March 4, 

1981 (46 FR 15136). This air quality 

monitoring plan has been subsequently 

updated, with the most recent submittal 

dated July 1, 2012 and approved by the 

EPA on October 25, 2012.5 This plan 

includes, among other things, the 

locations for the particulate matter 

monitoring network and ozone 

monitoring network. The State provides 

an annual air quality data report to the 

public at http://www.deq.state.or.us/aq/ 

forms/annrpt.htm. In addition, the State 

sends real time air monitoring 

information for ozone and particulate 

matter to the EPA’s AIRNow Web page 

at http://www.airnow.gov and also 

provides the information on the ODEQ 

Air Quality Index (AQI) Web site at 

http://www.deq.state.or.us/aqi. Based 

on the foregoing, the EPA is proposing 

to approve the Oregon SIP as meeting 

the requirements of CAA section 

110(a)(2)(B) for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(C): Program for enforcement of 

control measures 

CAA section 110(a)(2)(C) requires 

states to include a program providing 

for enforcement of all SIP measures, and 

the regulation of construction of new or 

modified stationary sources, including a 

permitting program to meet PSD and 

nonattainment NSR requirements as 

required by parts C and D of this 

subchapter. 

State submittal: The State submittals 

refer to ORS 468.090–.140 

‘‘Enforcement’’ which provide ODEQ 

with authority to investigate complaints, 

investigate and inspect sources for 

compliance, access records, commence 

enforcement procedures, and impose 

civil penalties. In addition, ORS 468.035 

(j, k) ‘‘Functions of the Department’’ 

provide ODEQ with authority to enforce 

State air pollution laws and compel 

compliance with any rule, standard, 

order, permit or condition. The State 

submittals cite the following Oregon 

laws and regulations related to 

enforcement and permitting: 

• ORS 468.065 Issuance of Permits; 

Consent; Fees; Use 

• ORS 468.070 Denial, 

Modification, Suspension or Revocation 

of Permits 

• ORS 468.090–.140 Enforcement 

• ORS 468.920–.963 Environmental 

Crimes 

• ORS 468.996–.997 Civil Penalties 

• ORS 468A.040 Permits; Rules 

• ORS 468A.045 Activities 

Prohibited without Permit 

• ORS 468A.055 Notice Prior to 

Construction of New Sources 

• ORS 468A.060 Duty to Comply 

with Laws, Rules, and Standards 

• ORS 468A.105 Formation of 

Regional Air Quality Control 

Authorities 

• ORS 468A.155 Rules Authorizing 

Regional Permit Programs 

• ORS 468A.165 Compliance with 

State Standards Required; Hearing; 

Notice 

• ORS 468A.990 Penalties for Air 

Pollution Offenses 

• OAR 340–012 Enforcement 

Procedure and Civil Penalties 

• OAR 340–200 General Air 

Pollution Procedures and Definitions 

• OAR 340–202 Ambient Air 

Quality Standards and PSD Increments 

• OAR 340–210 Stationary Source 

Notification Requirements 

• OAR 340–214 Stationary Source 

Reporting Requirements 

• OAR 340–216 Air Contaminant 

Discharge Permits (ADCP) 

• OAR 340–224 Major New Source 

Review 

EPA analysis: The EPA is proposing 

to find that the State code provisions 

referenced in the State submissions 

provide ODEQ with authority to enforce 

the air quality laws, regulations, 

permits, and orders promulgated 

pursuant to ORS Chapters 468 and 

468A. ODEQ staffs and maintains an 

enforcement program to ensure 

compliance with SIP requirements. The 

ODEQ Director, at the direction of the 

Governor, may enter a cease and desist 

order for polluting activities that present 

an imminent and substantial danger to 

public health (ORS 468–115). 

Enforcement cases may be referred to 

the State Attorney General’s Office for 

civil or criminal enforcement. 

Therefore, the EPA is proposing to 

approve the Oregon SIP as meeting the 

requirements of CAA section 

110(a)(2)(C) related to a program of 

enforcement measures for the 1997 

PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. 

The EPA is also proposing to find that 

the Oregon SIP meets the requirements 

related to PSD under CAA section 

110(a)(2)(C) for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. As 

discussed below, the State’s previouslyapproved SIP provisions are adequate to 

satisfy the requirements of CAA section 

110(a)(2)(C) for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS because 

they meet current Federal standards. 

The State’s major NSR program includes 

requirements for major source 

permitting in nonattainment areas, 

maintenance areas, and attainment and 

unclassifiable areas (OAR 340–224). The 

State’s Federally-enforceable state 

operating permit program is found at 

OAR 340–216 ‘‘Air Contaminant 

Discharge Permits,’’ and is also the 

administrative permit mechanism used 

to implement the notice of construction 

and major new source review programs. 

ODEQ delegates authority to Lane 

Regional Air Protection Agency 

(LRAPA) to implement the source 

permitting programs within LRAPA’s 

area of jurisdiction. The requirements 

and procedures contained in OAR 340– 

216, OAR 340–222 and OAR 340–224 

are used by LRAPA to implement its 

permitting programs until it adopts 

rules which are at least as restrictive as 

State rules. The EPA most recently 

approved revisions to the State’s major 

NSR rules on December 27, 2011 (76 FR 

80747), including approval of PSD 

permitting requirements for PM2.5 and 

greenhouse gases.6 The State’s SIPapproved PSD permitting program 

regulates NOX and VOCs as precursors 

to ozone. 

The State’s SIP-approved minor NSR 

program applies major source NSR/PSD 

requirements to any source with 

emissions over the significant emission 

rate, through the administrative 

mechanisms laid out in OAR 340–216 

‘‘Air Contaminant Discharge Permits.’’ 

The EPA has determined that the State’s 

minor NSR program, adopted pursuant 

to section 110(a)(2)(C) of the CAA, 

regulates emissions of PM2.5, NOX and 

SO2 as precursors to PM2.5, and NOX

and VOCs as precursors to ozone. In this 

action, the EPA is not evaluating the 

State’s SIP for consistency with the 

EPA’s regulations governing minor NSR. 

The EPA believes that a number of 

states may have minor NSR provisions 

that are contrary to the existing EPA 

regulations for this program. The EPA 

intends to work with states to reconcile 


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state minor NSR programs with the 

EPA’s regulatory provisions for the 

program. The statutory requirements of 

CAA section 110(a)(2)(C) provide for 

considerable flexibility in designing 

minor NSR programs, and the EPA 

believes it may be time to revisit the 

regulatory requirements for this program 

to give the states an appropriate level of 

flexibility to design a program that 

meets their particular air quality 

concerns, while assuring reasonable 

consistency across the country in 

protecting the NAAQS with respect to 

new and modified minor sources. 

Based on the analysis above, the EPA 

is proposing to find that the Oregon SIP 

includes enforcement, PSD, and minor 

source permitting provisions that are 

adequate to satisfy the requirements of 

CAA section 110(a)(2)(C) for the 1997 

PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. 

110(a)(2)(D): Interstate transport 

CAA section 110(a)(2)(D)(i) requires 

that SIPs contain adequate provisions 

prohibiting any source or other type of 

emissions activity in one state from 

contributing significantly to 

nonattainment, or interfering with 

maintenance of the NAAQS in another 

state, or from interfering with measures 

required to prevent significant 

deterioration of air quality or to protect 

visibility in another state. 

State submittal: The State submitted 

the ‘‘Oregon SIP Infrastructure for 

Addressing the Interstate Transport of 

Ozone and Fine Particulate Matter’’ 

(2010 Interstate Transport SIP) to satisfy 

the interstate transport requirements for 

multiple NAAQS, including the 2006 

PM2.5 and 2008 ozone NAAQS. The 

2010 Interstate Transport SIP references 

the State’s SIP-approved PSD program 

and the State’s collaborative work with 

neighboring states on regional haze 

SIPs, which include plans and 

requirements for addressing visibility 

impairment caused by fine particulate 

matter and ozone in national parks and 

wilderness areas. In addition, the 2010 

Interstate Transport SIP references the 

consultation ODEQ conducted with air 

agency staff in Washington, Idaho, 

Nevada and California in preparing the 

2010 Interstate Transport SIP, 

specifically to identify and understand 

relevant air pollution issues in 

neighboring states, and whether these 

problems could be impacted by 

interstate transport. 

EPA analysis: CAA section 

110(a)(2)(D)(i) addresses four separate 

elements, or ‘‘prongs.’’ CAA section 

110(a)(2)(D)(i)(I) requires state SIPs 

contain adequate provisions prohibiting 

emissions which will contribute 

significantly to nonattainment of the 

NAAQS in any other state (prong 1), and 

adequate provisions prohibiting 

emissions which will interfere with 

maintenance of the NAAQS by any 

other state (prong 2). CAA section 

110(a)(2)(D)(i)(II) requires that state SIPs 

contain adequate provisions prohibiting 

emissions which will interfere with any 

other state’s required measures to 

prevent significant deterioration (PSD) 

of its air quality (prong 3), and adequate 

provisions prohibiting emissions which 

will interfere with any other state’s 

required measures to protect visibility 

(prong 4). 

As noted above, this action does not 

address the requirements of CAA 

section 110(a)(2)(D)(i) for the 1997 PM2.5

NAAQS which the EPA approved in 

three previous actions: June 9, 2011 (76 

FR 33650), July 5, 2011 (76 FR 38997) 

and December 27, 2011 (76 FR 80747). 

In addition, this action does not address 

the requirements of CAA section 

110(a)(2)(D)(i)(I) for the 2006 PM2.5 and 

2008 ozone NAAQS which the EPA will 

address in a separate action. This action 

also does not address the requirements 

of CAA section 110(a)(2)(D)(i)(II) with 

regards to prevention of significant 

deterioration (prong 3) for the 2006 

PM2.5 NAAQS, which the EPA approved 

in a previous action on December 27, 

2011 (76 FR 80747). 

In this action, the EPA is proposing to 

approve the Oregon SIP as meeting the 

requirements of CAA section 

110(a)(2)(D)(i)(II) with respect to PSD 

(prong 3) for the 2008 ozone NAAQS 

and the requirements of CAA section 

110(a)(2)(D)(i)(II) with respect to 

visibility (prong 4) for the 2006 PM2.5

and 2008 ozone NAAQS. 

To address whether emissions from 

sources in Oregon interfere with any 

other state’s required measures to 

prevent significant deterioration of air 

quality, the State’s 2010 Interstate 

Transport SIP references the SIPapproved Oregon PSD program. The 

EPA approved revisions to the State’s 

major NSR rules on December 27, 2011 

(76 FR 80747), including approval of 

PSD permitting requirements for PM2.5

and greenhouse gases. The State’s SIPapproved PSD program regulates NOX

and VOCs as precursors to ozone. As 

discussed in the EPA’s 2011 analysis of 

the State’s PSD permitting requirements, 

the Federally-approved provisions of 

the State’s SIP meet current Federal PSD 

requirements. Federal PSD requirements 

have not changed since the date of the 

EPA’s most recent PSD-related SIP 

approval and the Oregon SIP provisions 

continue to meet Federal PSD 

permitting standards. Therefore, the 

EPA is proposing to approve the Oregon 

SIP as meeting the requirements of CAA 

section 110(a)(2)(D)(i)(II) with respect to 

PSD (prong 3) for the 2008 ozone 

NAAQS. 

To address whether emissions from 

sources in the State interfere with any 

other state’s required measures to 

protect visibility, the 2010 Interstate 

Transport SIP refers to the Oregon 

Regional Haze SIP which was submitted 

to the EPA on December 14, 2010, and 

addresses PM2.5 and PM2.5 and ozone 

precursor visibility impacts across states 

within the region. On July 5, 2011, the 

EPA approved portions of the Oregon 

Regional Haze SIP including the 

requirements for best available retrofit 

technology (BART) (76 FR 38997). The 

EPA approved the remaining elements 

of the Oregon Regional Haze SIP on 

August 22, 2012 (77 FR 50611). 

The EPA’s September 25, 2009, 

infrastructure guidance states that the 

EPA believes the requirement for state 

SIPs to include adequate provisions 

prohibiting interference with measures 

to protect visibility in another state 

could be satisfied by an approved SIP 

addressing regional haze. The EPA’s 

reasoning was that the development of 

the regional haze SIPs was intended to 

occur in a collaborative environment 

among the states, and that through this 

process states would coordinate on 

emissions controls to protect visibility 

on an interstate basis. The 2010 

Interstate Transport SIP describes the 

State’s participation in the Western 

Regional Air Partnership (WRAP), 

which is a regional planning 

organization created to address regional 

haze and related issues. WRAP member 

states include: Alaska, Arizona, 

California, Colorado, Idaho, Montana, 

New Mexico, North Dakota, Oregon, 

South Dakota, Utah, Washington and 

Wyoming, in addition to member tribes. 

In developing their respective regional 

haze SIPs, WRAP states, including 

Oregon, consulted with each other 

through the WRAP’s work groups. As a 

result of this process, the common 

understanding was that each state 

would take action to achieve the 

emissions reductions relied upon by 

other states in their reasonable progress 

demonstrations in their regional haze 

SIPs. 

Because Oregon has a Federallyapproved Regional Haze SIP that meets 

current requirements, the EPA 

concludes that the State’s SIP contains 

adequate provisions to address the 

requirements of CAA section 

110(a)(2)(D)(i)(II) with respect to 

visibility (prong 4) for the 2006 PM2.5

and 2008 ozone NAAQS. Therefore, the 

EPA is proposing to approve the Oregon 

SIP as meeting the requirements of CAA 


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section 110(a)(2)(D)(i)(II) as it applies to 

visibility for the 2006 PM2.5 and 2008 

ozone NAAQS (prong 4). 

Interstate and International transport 

provisions 

CAA section 110(a)(2)(D)(ii) requires 

SIPs to include provisions insuring 

compliance with the applicable 

requirements of CAA sections 126 and 

115 (relating to interstate and 

international pollution abatement). 

Specifically, CAA section 126(a) 

requires new or modified major sources 

to notify neighboring states of potential 

impacts from the source. 

State submittal: The State submittals 

state that State regulations are 

consistent with Federal requirements in 

Appendix N of 40 CFR part 50 

pertaining to the notification of 

interstate pollution abatement. The 

State refers to OAR 340–202 ‘‘Ambient 

Air Quality and PSD Increments.’’ 

EPA analysis: The EPA most recently 

approved revisions to the State’s NSR 

regulations on December 27, 2011 (76 

FR 80747). The State’s public notice 

requirements at OAR 340–209–0060 

require that for major NSR actions, 

ODEQ will provide notice to 

neighboring states, among other officials 

and agencies. The State has no pending 

obligations under section 115 or 126(b) 

of the Act. Accordingly, the EPA is 

proposing to approve the Oregon SIP as 

meeting the requirements of CAA 

section 110(a)(2)(D)(ii) for the 1997 

PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. 

110(a)(2)(E): Adequate resources 

CAA section 110(a)(2)(E) requires 

each state SIP to provide: (i) Necessary 

assurances that the State will have 

adequate personnel, funding, and 

authority under State law to carry out 

the SIP (and is not prohibited by any 

provision of Federal or State law from 

carrying out the SIP or portion thereof), 

(ii) requirements that the State comply 

with the requirements respecting State 

boards under section 128, and (iii) 

necessary assurances that, where the 

State has relied on a local or regional 

government, agency, or instrumentality 

for the implementation of any SIP 

provision, the State has responsibility 

for ensuring adequate implementation 

of such SIP provision. 

State submittal: The State submittals 

cite ORS 468.035 ‘‘Functions of 

Department’’ which provides ODEQ 

authority to employ personnel, purchase 

supplies, enter into contracts, and to 

receive, appropriate, and expend federal 

and other funds for purposes of air 

pollution research and control. In 

addition, ORS 468.045 ‘‘Functions of 

Director; Delegation’’ provides the 

ODEQ Director with authority to hire, 

assign, reassign, and coordinate 

personnel of the department and to 

administer and enforce the laws of the 

state concerning environmental quality. 

ORS 468.035(c) ‘‘Functions of 

Department’’ provides ODEQ authority 

to advise, consult, and cooperate with 

other states, state and federal agencies, 

or political subdivisions on all air 

quality control matters. ORS 468A.010 

‘‘Policy’’ calls for a coordinated 

statewide program of air quality control 

with responsibility allocated between 

the state and the units of local 

government. ORS 468A.100–180 

‘‘Regional Air Quality Control 

Authorities’’ describes the 

establishment, role and function of 

regional air quality control authorities. 

State regulations at OAR 340–200 

‘‘General Air Quality Definitions’’ 

specify LRAPA has authority in Lane 

County and defines the term ‘‘Regional 

Agency.’’ OAR 340–204 ‘‘Designation of 

Air Quality Areas’’ includes designation 

of control areas within Lane County. 

OAR 34–216 ‘‘Air Contaminant 

Discharge Permits’’ includes permitting 

authorities for LRAPA. 

EPA analysis: The EPA proposes to 

find that the Oregon SIP meets the 

adequate personnel, funding and 

authority requirements of CAA section 

110(a)(2)(E)(i). The State of Oregon 

receives sections 103 and 105 grant 

funds from the EPA and provides State 

matching funds necessary to carry out 

SIP requirements. For purposes of CAA 

section 110(a)(2)(E)(ii), the EPA 

approved OAR 340–200–0100 through 

OAR 340–200–0120 as meeting the 

requirements of CAA section 128 on 

January 22, 2003 (68 FR 2891). Finally, 

regarding CAA section 110(a)(2)(E)(iii) 

state responsibility and oversight of 

local and regional entities, the EPA is 

proposing to find that State law and 

regulation detailed above provides 

ODEQ with adequate authority to carry 

out SIP obligations with respect to the 

1997 PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. Therefore the EPA is proposing 

to approve the Oregon SIP as meeting 

the requirements of CAA section 

110(a)(2)(E) for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(F): Stationary source 

monitoring system 

CAA section 110(a)(2)(F) requires (i) 

The installation, maintenance, and 

replacement of equipment, and the 

implementation of other necessary 

steps, by owners or operators of 

stationary sources to monitor emissions 

from such sources, (ii) periodic reports 

on the nature and amounts of emissions 

and emissions-related data from such 

sources, and (iii) correlation of such 

reports by the state agency with any 

emission limitations or standards 

established pursuant to the CAA, which 

reports shall be available at reasonable 

times for public inspection. 

State submittal: The State submittals 

refer to the following statutory and 

regulatory provisions which provide 

authority and requirements for source 

emissions monitoring, reporting, and 

correlation with emission limits or 

standards: 

• ORS 468.035 (b, d) Functions of 

Department 

• ORS 468A.025(4) Air Purity 

Standards; Air Quality Standards; 

Treatment and Control of Emissions; 

Rules 

• ORS 468A.070 Measurement and 

Testing of Contamination Sources; Rules 

• OAR 340–212 Stationary Source 

Testing and Monitoring 

• OAR 340–214 Stationary Source 

Reporting Requirements 

• OAR 340–222 Stationary Source 

Plant Site Emission Limits 

• OAR 340–225 Air Quality 

Analysis Requirements 

• OAR 340–234 Emission Standards 

for Wood Products Industries: 

Monitoring and Reporting 

• OAR 340–236 Emission Standards 

for Specific Industries: Emissions 

Monitoring and Reporting 

• OAR 340–240 Rules for Areas 

with Unique Air Quality Needs 

EPA analysis: The State statutory 

provisions listed above provide 

authority to establish a program for 

measurement and testing of sources, 

including requirements for sampling 

and testing. The State regulations cited 

above require facilities to monitor and 

report emissions, including 

requirements for monitoring methods 

and design, and monitoring and quality 

improvement plans. In addition, 

stationary source reporting requirements 

include maintaining written records to 

demonstrate compliance with emission 

rules, limitations, or control measures, 

and requirements for reporting and 

recordkeeping. Therefore, the EPA is 

proposing to approve the Oregon SIP as 

meeting the requirements of CAA 

section 110(a)(2)(F) for the 1997 PM2.5,

2006 PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(G): Emergency episodes 

CAA section 110(a)(2)(G) requires 

states to provide for authority to address 

activities causing imminent and 

substantial endangerment to public 

health, including contingency plans to 

implement the emergency episode 

provisions in their SIPs. 


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7See footnote 2. 

State submittal: The State submittals 

cite ORS 468–115 ‘‘Enforcement in 

Cases of Emergency’’ which authorizes 

the ODEQ Director, at the direction of 

the Governor, to enter a cease and desist 

order for polluting activities that present 

an imminent and substantial danger to 

public health. In addition, OAR 340– 

206 ‘‘Air Pollution Emergencies’’ 

authorizes the ODEQ Director to declare 

an air pollution alert or warning, or to 

issue an ozone advisory to notify the 

public. OAR 340–214 ‘‘Stationary 

Source Reporting Requirements’’ 

requires reporting of emergencies and 

excess emissions and reporting 

requirements. 

EPA analysis: ORS 468–115 

‘‘Enforcement in Cases of Emergency’’ 

provides emergency order authority 

comparable to CAA Section 303. 

Emergency episode SIP requirements 

are set forth at 40 CFR part 51 subpart 

H (prevention of air pollution 

emergency episodes, sections 51.150 

through 51.153). The EPA has not 

promulgated revisions to these rules for 

PM2.5. However, the EPA’s September 

25, 2009 guidance 7 made 

recommendations on how states could 

address emergency episode and 

contingency plans for PM2.5. 

Subsequently, on December 27, 2011 (76 

FR 80747), the EPA approved State 

revisions to OAR 340–206 ‘‘Air 

Pollution Emergencies’’ to add a 

significant harm level, air pollutant alert 

level, air pollution warning level, and 

air pollutant emergency level for PM2.5, 

consistent with the EPA’s September 25, 

2009 guidance. OAR 340–206 ‘‘Air 

Pollution Emergencies’’ is consistent 

with the requirements of 40 CFR 51.150 

through 51.153 for ozone. Therefore, the 

EPA is proposing to approve the Oregon 

SIP as meeting the requirements of CAA 

section 110(a)(2)(G) for the 1997 PM2.5, 

2006 PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(H): Future SIP Revisions 

CAA section 110(a)(2)(H) requires that 

SIPs provide for revision of such plan (i) 

from time to time as may be necessary 

to take account of revisions of such 

national primary or secondary ambient 

air quality standard or the availability of 

improved or more expeditious methods 

of attaining such standard, and (ii), 

except as provided in paragraph 

110(a)(3)(C), whenever the 

Administrator finds on the basis of 

information available to the 

Administrator that the SIP is 

substantially inadequate to attain the 

NAAQS which it implements or to 

otherwise comply with any additional 

requirements under the CAA. 

State submittal: The State submittals 

refer to ORS 468A.025 ‘‘Air Purity 

Standards; Air Quality Standards; 

Treatment and Control of Emissions; 

Rules’’ which provides authority for the 

EQC to establish areas of the state that 

require controls necessary to achieve the 

NAAQS. The submittals also refer to 

OAR 340–200 ‘‘General Air Pollution 

Procedures and Definitions’’ –0040 

‘‘State of Oregon Clean Air Act 

Implementation Plan’’ which provides 

for revisions to the Oregon SIP and 

submittal of revisions to the EPA, 

including standards submitted by a 

regional authority and adopted verbatim 

into ODEQ rules. 

EPA analysis: As cited above, the 

State’s SIP provides for revisions, and in 

practice, the State regularly submits SIP 

revisions to the EPA to take into account 

revisions to the NAAQS and other 

Federal regulatory changes. On 

December 27, 2011, the EPA approved 

numerous revisions to the Oregon SIP, 

including updates to the State’s rules to 

reflect Federal changes to the NAAQS 

for PM2.5, ozone and lead (76 FR 80747). 

The EPA proposes to approve the 

Oregon SIP as meeting the requirements 

of CAA section 110(a)(2)(H) for the 1997 

PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. 

110(a)(2)(I): Nonattainment area plan 

revision under part D 

CAA section 110(a)(2)(I) requires 

states, in the case of a plan or revision 

for an area designated as nonattainment, 

to meet the applicable requirements of 

part D of Title I of the CAA relating to 

nonattainment areas. 

EPA analysis: There are two elements 

identified in CAA section 110(a)(2) not 

governed by the three-year submission 

deadline of CAA section 110(a)(1). SIPs 

incorporating necessary local 

nonattainment area controls are not due 

within three years after promulgation of 

a new or revised NAAQS, but are, 

rather, due at the time of the 

nonattainment area plan requirements 

pursuant to section 172. These 

requirements are: (i) submissions 

required by CAA section 110(a)(2)(C) to 

the extent that subsection refers to a 

permit program as required in part D, 

Title I of the CAA, and (ii) submissions 

required by CAA section 110(a)(2)(I) 

which pertain to the nonattainment 

planning requirements of part D, Title I 

of the CAA. Because the nonattainment 

planning requirements are not governed 

by the three-year submission deadline of 

CAA section 110(a)(1), this 

infrastructure action does not address to 

the requirements of CAA section 

110(a)(2)(C) with respect to 

nonattainment NSR or CAA section 

110(a)(2)(I). 

110(a)(2)(J): Consultation with 

government officials 

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

states to provide a process for 

consultation with local governments 

and Federal Land Managers who are 

carrying out NAAQS implementation 

requirements pursuant to CAA section 

121, relating to consultation. CAA 

section 110(a)(2)(J) further requires 

states to notify the public if NAAQS are 

exceeded in an area and to enhance 

public awareness of measures that can 

be taken to prevent exceedances. Lastly, 

CAA section 110(a)(2)(J) requires states 

to meet applicable requirements of part 

C, title I of the CAA related to 

prevention of significant deterioration 

and visibility protection. 

State submittal: The State submittals 

reference specific laws and regulations 

relating to consultation, public 

notification, and PSD and visibility 

protection: 

• ORS 468.020 Rules and Standards 

• ORS 468.035(a, c, f–g) Functions 

of Department 

• ORS 468A.010 (1) (b, c) Policy 

• ORS 468A.025 Air Purity 

Standards; Air Quality Standards; 

Treatment and Control of Emissions; 

Rules 

• OAR 340–202 Ambient Air 

Quality Standards and PSD Increments 

• OAR 340–204 Designation of Air 

Quality Areas 

• OAR 340–206 Air Pollution 

Emergencies 

• OAR 340–209 Public Participation 

• OAR 340–224 Major New Source 

Review 

• OAR 340–225 Air Quality 

Analysis Requirements 

EPA analysis: The EPA proposes to 

find that the State’s Federally-approved 

SIP includes specific provisions for 

consulting with local governments and 

Federal Land Managers as specified in 

CAA section 121. ODEQ coordinates 

with local governments, states, Federal 

Land Managers and other stakeholders 

on air quality issues and provides notice 

to appropriate agencies related to 

permitting actions. The State regularly 

participates in regional planning 

processes including the Western 

Regional Air Partnership, which is a 

regional planning organization made up 

of states, tribes, Federal Land Managers, 

local air agencies, whose purpose is to 

understand current and evolving 

regional air quality issues in the West. 

The EPA is proposing to approve the 

Oregon SIP as meeting the requirements 

of CAA section 110(a)(2)(J) for 


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17312 Federal Register / Vol. 78, No. 55 / Thursday, March 21, 2013 / Proposed Rules 

consultation with government officials 

for the 1997 PM2.5, 2006 PM2.5, and 2008 

ozone NAAQS. 

The State of Oregon sends real time 

air monitoring information for ozone, 

particulate matter, and carbon 

monoxide to the EPA’s AIRNow Web 

page at http://www.airnow.gov and also 

provides the information on the ODEQ 

Air Quality Index (AQI) Web site at 

http://www.deq.state.or.us/aqi 

including measures that can be taken to 

improve air quality. The EPA is 

proposing to approve the Oregon SIP as 

meeting the requirements of CAA 

section 110(a)(2)(J) for public 

notification for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. 

The requirement in CAA section 

110(a)(2)(J) that the SIP meet the 

applicable requirements of part C, title 

I of the CAA is the same as described 

earlier at CAA section 110(a)(2)(C) as it 

relates to PSD. The EPA most recently 

approved revisions to the State’s 

Federally-approved PSD program on 

December 27, 2011 (76 FR 80747), 

including PSD program regulation of 

direct PM2.5, NOX and SO2 as precursors 

to PM2.5, and PSD permitting of 

greenhouse gas-emitting sources. The 

State’s SIP-approved PSD permitting 

program regulates NOX and VOCs as 

precursors to ozone. Therefore, the EPA 

is proposing to approve the Oregon SIP 

as meeting the requirements of CAA 

section 110(a)(2)(J) for PSD for the 1997 

PM2.5, 2006 PM2.5, and 2008 ozone 

NAAQS. 

With regard to the applicable 

requirements for visibility protection, 

the EPA recognizes that states are 

subject to visibility and regional haze 

program requirements under part C of 

Title I of the CAA. In the event of the 

establishment of a new NAAQS, 

however, the visibility and regional 

haze program requirements under part 

C, Title I of the CAA do not change. 

Thus we find that there is no new 

visibility obligation triggered under 

CAA section 110(a)(2)(J) when a new 

NAAQS becomes effective. 

Based on the analysis above, the EPA 

is proposing to approve the Oregon SIP 

as meeting the requirements of CAA 

section 110(a)(2)(J) for the 1997 PM2.5, 

2006 PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(K): Air quality and modeling/ 

data 

CAA section 110(a)(2)(K) requires that 

SIPs provide for (i) the performance of 

such air quality modeling as the 

Administrator may prescribe for the 

purpose of predicting the effect on 

ambient air quality of any emissions of 

any air pollutant for which the 

Administrator has established a national 

ambient air quality standard, and (ii) the 

submission, upon request, of data 

related to such air quality modeling to 

the Administrator. 

State submittal: The State submittals 

refer to ORS 468.035 ‘‘Functions of 

Department’’ which provides ODEQ 

authority to conduct studies and 

investigations to determine air quality. 

OAR 340–202 ‘‘Ambient Air Quality 

Standards and PSD Increments’’ 

establishes standards and procedures for 

modeling and reporting data on air 

emissions. OAR 340–216 ‘‘Air 

Contaminant Discharge Permits’’ 

establishes requirements for testing, 

monitoring, recordkeeping, and 

reporting requirements to determine 

compliance with emission standards. 

OAR 340–225 ‘‘Air Quality Analysis 

Requirements’’ includes modeling 

requirements for analysis and 

demonstration of compliance with 

standards and increments in specified 

areas. OAR 340–226 ‘‘General Emission 

Standards’’ provides authority for ODEQ 

to establish additional controls through 

permitting to prevent violation of 

ambient air quality standards from a 

source as determined by modeling, 

monitoring or a combination thereof. 

EPA analysis: The EPA previously 

approved the State’s regulations on air 

quality modeling into the SIP on 

January 22, 2003 (68 FR 2891) and these 

rules require all modeled estimates of 

ambient concentrations be based on 40 

CFR part 51, Appendix W (Guidelines 

on Air Quality Models). Any change or 

substitution from models specified in 40 

CFR part 51, Appendix W is subject to 

notice and opportunity for public 

comment and must receive prior written 

approval from ODEQ and the EPA. 

As an example of the State’s modeling 

capacity, the State of Oregon has 

submitted a recent SIP revision, 

supported by modeling for ozone. The 

Portland and Salem areas were 

historically nonattainment under the 1- 

hour ozone standard and require 

maintenance plans that ensure on-going 

compliance with the 1997 8-hour ozone 

standard. On May 22, 2007, the State 

submitted these maintenance plans to 

the EPA, supported by extensive 

modeling. The EPA approved the SIP 

revision on December 19, 2011 (76 FR 

78571). Based on the foregoing, the EPA 

is proposing to approve the Oregon SIP 

as meeting the requirements of CAA 

section 110(a)(2)(K) for the 1997 PM2.5, 

2006 PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(L): Permitting fees 

CAA section 110(a)(2)(L) requires SIPs 

to require each major stationary source 

to pay permitting fees to cover the cost 

of reviewing, approving, implementing 

and enforcing a permit, until such time 

as the SIP fee requirement is superseded 

by the EPA’s approval of the state’s title 

V operating permit program. 

State submittal: The State submittals 

refer to ORS 468.065 ‘‘Issuance of 

Permits: Content; Fees; Use’’ which 

provides the EQC authority to establish 

a schedule of fees for permits based 

upon the costs of filing and 

investigating applications, issuing or 

denying permits, carrying out Title V 

requirements and determining 

compliance. ORS 468A.050 

‘‘Classification of Air Contamination 

Sources; Registration and Reporting of 

Sources; Rules; Fees’’ provides authority 

to the EQC to establish fee schedules for 

air contamination sources. OAR 340– 

216 ‘‘Air Contaminant Discharge 

Permits’’ requires payment of permit 

fees based on a specified table of 

sources and fee schedule. In addition, 

the State submittals point to the State’s 

approved title V program. 

EPA analysis: On September 28, 1995, 

the EPA fully approved the State’s title 

V program (60 FR 50106) (effective 

November 27, 1995). While the State’s 

operating permit program is not 

formally approved into the State’s SIP, 

it is a legal mechanism the State can use 

to ensure that ODEQ has sufficient 

resources to support the air program, 

consistent with the requirements of the 

SIP. The State’s title V program 

included a demonstration the State will 

collect a fee from title V sources above 

the presumptive minimum in 

accordance with 40 CFR 70.9(b)(2)(i). 

The EPA’s review process prior to the 

approval of the State’s Title V 

permitting program included an 

evaluation of the State’s ability to 

collect adequate fees. Therefore, the 

EPA proposes to find that the State has 

satisfied the requirements of CAA 

section 110(a)(2)(L) for the 1997 PM2.5,

2006 PM2.5, and 2008 ozone NAAQS. 

110(a)(2)(M): Consultation/participation 

by affected local entities 

CAA section 110(a)(2)(M) requires 

states to provide for consultation and 

participation in SIP development by 

local political subdivisions affected by 

the SIP. 

State submittal: The State submittals 

refer to the following laws and 

regulations: 

• ORS 468.035 (a, c, f–g) Functions 

of Department 

• ORS 468A.010 (1) (b, c) Policy 

• ORS 468A.100–180 Regional Air 

Quality Control Authorities 

• ORS 468A.405 Authority to Limit 

Motor Vehicle Operation and Traffic; 

Rules 


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• OAR 340–200 General Air 

Pollution Procedures and Definitions 

• OAR 340–204 Designation of Air 

Quality Areas 

• OAR 340–216 Air Contaminant 

Discharge Permits 

EPA analysis: The regulations cited by 

the State were previously approved on 

December 27, 2011 (76 FR 80747), and 

provide for consultation and 

participation in SIP development by 

local political subdivisions affected by 

the SIP. Therefore the EPA proposes to 

find that the State’s SIP meets the 

requirements of CAA section 

110(a)(2)(M) for the 1997 PM2.5, 2006 

PM2.5, and 2008 ozone NAAQS. 

VI. Scope of Proposed Action 

Oregon has not demonstrated 

authority to implement and enforce the 

Oregon Administrative rules within 

‘‘Indian Country’’ as defined in 18 

U.S.C. 1151. ‘‘Indian country’’ is 

defined under 18 U.S.C. 1151 as: (1) All 

land within the limits of any Indian 

reservation under the jurisdiction of the 

United States Government, 

notwithstanding the issuance of any 

patent, and including rights-of-way 

running through the reservation, (2) all 

dependent Indian communities within 

the borders of the United States, 

whether within the original or 

subsequently acquired territory thereof, 

and whether within or without the 

limits of a State, and (3) all Indian 

allotments, the Indian titles to which 

have not been extinguished, including 

rights-of-way running through the same. 

Under this definition, the EPA treats as 

reservations trust lands validly set aside 

for the use of a Tribe even if the trust 

lands have not been formally designated 

as a reservation. Therefore, this SIP 

approval does not extend to ‘‘Indian 

Country’’ in Oregon. See CAA sections 

110(a)(2)(A) (SIP shall include 

enforceable emission limits), 

110(a)(2)(E)(i) (State must have adequate 

authority under State law to carry out 

SIP), and 172(c)(6) (nonattainment SIPs 

shall include enforceable emission 

limits). 

VII. Proposed Action 

The EPA is proposing to find that the 

Federally-approved provisions currently 

in the Oregon SIP meet the following 

CAA section 110(a)(2) infrastructure 

elements for the 1997 PM2.5, 2006 PM2.5, 

and the 2008 ozone NAAQS: (A), (B), 

(C), (D)(ii), (E), (F), (G), (H), (J), (K), (L), 

and (M). The EPA is also proposing to 

find that the Federally-approved 

provisions currently in the Oregon SIP 

meet the requirements of CAA section 

110(a)(2)(D)(i)(II) as it applies to 

prevention of significant deterioration 

for the 2008 ozone NAAQS, and CAA 

section 110(a)(2)(D)(i)(II) as it applies to 

visibility for the 2006 PM2.5 and 2008 

ozone NAAQS. This action does not 

propose to approve any additional 

provisions into the Oregon SIP but is a 

proposed finding that the current 

provisions of the Oregon SIP are 

adequate to satisfy the above-mentioned 

infrastructure elements required by the 

CAA. This action is being taken under 

section 110 of the CAA. 

VIII. Statutory and Executive Order 

Reviews 

Under the CAA, the Administrator is 

required to approve a SIP submission 

that complies with the provisions of the 

Act and applicable Federal regulations. 

42 U.S.C. 7410(k); 40 CFR 52.02(a). 

Thus, in reviewing SIP submissions, the 

EPA’s role is to approve state choices, 

provided that they meet the criteria of 

the CAA. Accordingly, this proposed 

action merely approves the state’s law 

as meeting Federal requirements and 

does not impose additional 

requirements beyond those imposed by 

the state’s law. For that reason, this 

proposed action: 

• 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 CAA; and 

• does not provide the EPA with the 

discretionary authority to address, as 

appropriate, disproportionate human 

health or environmental effects, using 

practicable and legally permissible 

methods, under Executive Order 12898 

(59 FR 7629, February 16, 1994). 

In addition, this 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 Oregon, and the 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, and 

Reporting and recordkeeping 

requirements. 

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

Dated: March 6, 2013. 

Dennis J. McLerran, 

Regional Administrator, Region 10. 

[FR Doc. 2013–06309 Filed 3–20–13; 8:45 am] 

BILLING CODE 6560–50–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 54 

[REG–122706–12] 

RIN 1545–BL50 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2590 

RIN 1210–AB56 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

45 CFR Parts 144, 146, and 147 

[CMS–9952–P] 

RIN 0938–AR77 

Ninety-Day Waiting Period Limitation 

and Technical Amendments to Certain 

Health Coverage Requirements Under 

the Affordable Care Act 

AGENCY: Internal Revenue Service, 

Department of the Treasury; Employee 

Benefits Security Administration, 

Department of Labor; Centers for 

Medicare & Medicaid Services, 

Department of Health and Human 

Services. 

ACTION: Proposed rules. 


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