ROY COO PER Att orn ey Gene r al Regina McCa rth y

State of North Carolina D e partment o f Ju s ti ce PO n ox 629 Raleigh, North Caro lina 27602 December 23 , 2013 Administrat o r of th e U.S. Environm e ntal Protection Agency United States Environmenta l Pr otec ti o n Ag enc y \Villiam Jeffe rs o n C linton Fed era l B uildi ng 1200 P e nn sylv a nia A ve nu e, NW Washington, D C 2046 0 R e: Petition for R eco n s id e ration and Am e nded Rulcrnaking Dear !'v i s. i\'fcC a rth y:

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**~** .. . ... : ' . . **;. :-=**  **~** ·.-... :: **-~** E n clo se d plea s e l'ln d :1 P eti tion f (H· H. eco n si de rat io n a nd Ame n ded Ru lema k in g. Enclo s ur es cc via Certif i ed M a il: v ia Cer tifi ed Mail:

Si n c crel y, **~** /1 A-1 . _.. **'~ /~**  P a mel a A. Jon<:s Nort h Ca r o l ina S tat e 13 ar C c rti ticd Paralegal Co rre spo n dence Cont r o l U ni t, Oftice of Genera l Co un s el , U.S. EPA Er ic H . Holder, Jr. , A tt o rn ey Ge n era l of th e Un it e d Sta t es

·iBEF O RE Tl JE UNITED **STA TT~S**  . ENVIRONMENTAL P ROTECT I ON AGENCY fn re:Pre ve nt ion nf Sign i fica nt Deterioration ( PSD) fo r ParticuiaLe Maller Less Than 2.5 .lv lier omete rs (PTv1 25 )." 75 Fed. R eg . 64,864 (Oct. 20.1010}

) . ))))) EPA Docket No. EPA-I J Q-OA R .. 2Q06 - 0605 1..... --· . ............... ..-..-..... "·----·-· .....--..--·. ____ ........_ PETITiON fO'R RgCONSJDERATION AND **A.~1ENDED** RlJLEM . AKlNG **Lh en**  **J<~** Menard Scott Conl<.l in North Cm·()l i nn Departmen t of Ju stice

P.O. Box 629 **f< ~=tldg**  **h,** NC 27602 Phone Numbe r: (9 1 9) 7 16-6 600 FHx Number: (9 1 9)

**16~ 6767**  Co un s d fo r he State of North Caro lin a

U a ted: December 23, 20 lJP u rs u a nt ( O St: ct io n 3 07(d)(7) ( B ) ofth e C lean Air /\c l ("CAA''), 42 U.S .C. § ? 607(d)(7)(B} (2 0 13 ), th e State of' No rth Cu· o lina (''St at e"' ' o r " P etiti o ne r ") respectf u lly petit ion s t.he Unite d St at es En viro nm e nta l Prot ect i on Agen c y ("E P A") to g r:mr

**ec on~;ide**  **rati on**  of the major so urce baseline d a te in cl u d ed in t h e nile en tit le d "P r eve ntio n o f Si g 11iikant Deterioration ( PSD ) f or

**·ti cu**  **latc** ivlatte r L ess Th a n 2.5 l\-1i cr o mder s (PM n).' ' 75 **h.~d. RL"~g.**  **64~864** (( )c t. 20. 2 0 1 0) (" l nc re rn e nt l<u!c"). T h e gr ound s f' or the o b je c tion detailed in t h is P etitio n a ro se aft er t he l n uemcnt Rule public com ment pe ri o d ende d, and th e "o bj ect io n is of cen tr al **r~ kv~tnc** 
**c** to t h e o ul co J. ne o f the
**le-, '~**  v.; ar ra nt in g re co nsi de rat io n. 42 U.S . C. § 76 0 7 (d)( 7 )(BJ. 1 In addi ti o n, pur suan t to the CAA, 4 2 U.S . C.

**~** 7 400 e r seq. a n d t h e

;\ P/\, 5 U .S . C. § 551 et seq ., P etit io n e r hereby p e til:ion s E P A to u ncl crt <-1ke a n :l e makin g proced ur e to **am~n d**  t h e Incre-ment H ul e w it h r· egnr d to th e m ajor **snurc<.**

**~** bas elin e date . BACKGROUND In 2 0 06, EPA re vi se d th e nat io nal ambi e nt. air qualit y sta nd a rd (" N AAQS") for pnrticula tc- matter l es s tha n or equa l to 2.5 microns i n dia m ete r (" P M :. s''). Na tio nal A m b ient. Air Q u a lity Standards fo r Particulate M aUe r, 71 Fe d . R eg .

**~)** i, 1 4 4 (O ct 17; 2006). In 2007 a nd 2008, E P A issued tw o P .tv l:t 5 i n·\p le m e nt at io n r u les. Clea n A ir F i ne Particle Implementation Rule, 72 Fe d. R e g. 20,586 (A p r. 2 5, 1 \\'hi ll- .it !s u ndl):lr w h c !lwr o r no t lhi .s Pel it ion is **.'et~S~<Il"Y und** 

**t~ r**  S n: lion :l0 7(d )(7j (l l). S<'e Am. Rd

**~:** 'li'amp. illii/ . l,! r.l· .·b ·s 'n l'. FPA, 588 V .. **~d** 1 109, 111<1 (D. C. Cir. **~:009),** Peti l io J Kr subm its t h is

**li (lll**  in the cwn t that it is <it-tcn n in c.d

**I~ )**  b t· **n;:(:l ~$**  **ary.** 22007 ): fr nplcrnc ntati o n o Cth e N e w S ource **l~cvil \V**  (NS R) Progr am fo r P ar t icu la te Mall'e:r Less Than 2.5 M i cr om ete rs **Pl\11**

**~** 73 h:d. R eg. 28,32 1 (l'v f <1Y I 6: 2008). I n 2008, these rules we re c h a ll e n ge d by Na tur al.R esources Defense Counci l (''NR D('.''') <lnd t he Sk n·a Clu b in the United
**Sta t.~s**  Cou ri of /\pp ('.als for the Di -; rri t:f of Columb i a Circui t, <Jn d u d ecision was i ss u e d o n J anuary 4, 20 !3. · \' //' ') J'' !' ('' 'I I"' J> A 70 '(' .., ") j I ')') (l' ) ( '' (''' ')() I' ') J \lj ,. ('

; 'ot J II'a **\(~s.** ..>e ensc .. owu .'J . v. --:. , ) J· .. )< lt _X . . ·" ... .Jr. ,.:. .) . n 1 ?. ) .

**~** the co u r 1 h eld

**i~ hat**  ' 'P iv !IC( a s **th t**  term is defined in 42 U .S. C . § 7602 e xpr ess ly includes **M,~-** 706 F.3cl at 4 36. Th e co u rt f( .wn d t h at HPA ha d e rr ed bv .... ., < Hk!n :ss ing P ivl: 1 5 so lely un d er th e ge n era l nona ttai nme u t prov isi ons o f Subpa rt when p ro nru l gati n g its 2 007 and 2 00 8 im p lem e n ta t io n rul es , ru th er tha n un d er Subp : ll't 4 's provision s spccif1ca ll y add r ess in g P M 1 0 . ld. at 4.37. T h e court found rh at Subpa rt 4li mi ted **PA~ s**  di sc re ti o n, a nd t hat t hese n o ndi sc r etiona r y rc· quireme n b co u ld not b e i gno re d. ! d. a t 43 6. 'T he c ou rt reman d ed t h e 2 0 07 and :!008 rules to . EPA for **n:~-p**

**ga ti**  **n** u n de r S ub par t 4 i n kee p ing with the coun's decision. !d. nt 4-37. Dur i ng t. be course of the NRDC lit iga ti o n, EP A issue d the T ncreme n t H u k in 20 I 0. 75 Fed . 'Reg. 64,864. In th e pr eamb le t.o th e propose d **ncr~men**

**t** Ru le in 2007 . EPA posite d th at it had tw o opti o n s \Vh e n se tt i n g th e b ·ase l.i n e d a t es: 2 1) trea t

Pl\·1 :.:5 as a nevv po llu tant un d er Sect io n l6 6(a) , r·e.s ul tin g in a new basel i ne d me :
**P- ::~**  **dirw** dates bdn1; set by E P J\ in I h e PM :: 5l nercnwn! R 11 k in clude t he
**gg ~r**  da tl' an d the **m~jor** s o urc t: h as t! ine **da•**
**~· .**  See 'l :i **F~ d.**  **l~ g.**  <11 6o1.SML . ,,·'(''Option l ''),or 2)

**rcpla c~**  th e annua l PM 10 in c. rcrn cnts wit h annual PM 25 ilh . TeJll(!l1l.::; under Sec.lion 1 66(1) ("OptiOll 2"). Pr eventio n or Significa n t Dekrioration (PSD) f or Parti cu lat e Matt e r l.css Tbnn 2.5 .tvli . cmme te rs ( P M 2.5 ), 72 Fe d. **l<c~g**

**.** 5 4,112, S4,114- l5 , 54 ,l:l6 < 1g **(propm;(~d** S..: .pt. 2 1, 2007). According l<.' LP;\, ''Section !()()(l) d ocs n ot address h o vv EPA should h.andk baseline dates i' or a

st,hs iitutt:cl inc r eme n t." 72 F ed. Reg. at 54,138. T he r d()re, under Option 2, **L~PA** p ro p ose d to **H~t.ain** t he exist in g basel i ne date c)f' 1975 J()r the annual **PM~. 5**  increments (bt :t s till proposed f.o u sc Option 1 f()l· the 24-hour PM:.u increments). JJ l n the **tina**

**~** I ncreme nt Rul e, J.:PA chose to u se Opt ion J, setting ncv,t baseline dates !(w both fhe annua l an d 24 -- lw u r PM 2 _5 incremenT s. 75 Fed . Re g. at 6 4J->68 . .In a recent Federal Hegi .st cr noti ce, EPA stated i ts position that the baseline dare **)r** majo r so urces in Httai nmc nL nne! unclassifinblc areas \Vas not affecte d by

the NR DC decision . Promulgation o f StHtc Impkmcntntion P lan Rev isio n s; Revision l l) Prevention of Signi fieant Deterioration P r ogram; Tnthtstructurc R equi r eme nts for the 199 7 and 2 006 Pf vh 5 Nat ional Ambient Air Qtwllty Standards; Utah, 78 Fed. Reg. 63)883, 63,885 (Oct. 25 , 2013). Be cause EPA bl'lit::ved tha L the case d id not address the increment or b aseline **provi~ions** in the I ncrement Rule, J:·: P A concluded th at the PM 2.5

**basd int**  **~** dates "re ma i n in e.f( 0 ct and are unchH n ge d " by !he lVRDC decision. 78 F ed. Reg. at 63,8R5. 4**AHGlJMl**

**~N T**  Pur s u ant to th e NRDC deci sio n, PM 2.. 5 is not a n ew poJlu(anr, nnd E PA cnn n ot ignore t he nondi scn.>: t iOIWry PM 10 pro v i sions when promu lga tin g PM 1 5 implementation n.dcs. NR DC, 706 F.3d nt436. Theref o r e, th e opt io n EPA believe d it had in the 2010 I nc r emen t J {uJe ···· the option to ignore the P"l\.1 10 p r ov ision s and t t:cat PM ;u as a new pollumnt ····· \Va s leg nlly n o t n v ai l nb l e t:o EPA. Th ;;: refore, the ex isting major

**~a)urce** baseline date t)f 1975 is applicable, rat her t h :111

<1

**tl w**  20 I 0 basd inc date . Sectiou 166(a) o f the CAA pro vides that for

pollut an ts for \Vh ic h national am bient nir qualit y stand a rd s a re pronlll l gare d after the date of the enactment of th is part I:e na cted A u g. 7; 1977 ], [tbe Adminis t rator] s hall p r om ul ga te such re gu lations [to prevent: the significant: dete r ioratio n of ai r qua lit y whic h w ou ld re su lt from the emissions of s uch pollutants] n ot. more t hnn 2 year s after t he **dat~** of promulgaLion of su c h s tandards. 42 U. S.C. § 7476(a ). Section 166(f) provides tlwt ' rh e A drninistra tor i.s a uthori ze d to sub s tit u t e, for t he m ax i mum all owa b le increa s e s in patiie u l ntc matte r sp ecified in sect i on 1 63(b) and sec t io n t 65(d)(2)(C)( i v) f 4 2 USCS §§ 74 7 3( b), 7 475(d)( 2)( C)(iv)l, maximum al l<)\vab le incninse s in partictllat c matter \Vit.h an aerodynamic diameter sm ;; 1!l e r than or equa l t o 1 0 m ic r ometers. Suc h s ubstitut e d max irnum allow a ble increases shnll be of equa l s tringenc y in e!'fixt a s t ho se specified in lhe pr ov isio ns fo r

\- vhich they are subst i tu ted. "") I I **~** ('

**.~** 7t. 1 7/.(f) ;...,.._ \. d . I ........

**~ ~**  1 0 - . 5in the NRDC de ci sion, the co urt lo oke d t o the deflni ti on of P M 10 in 42 l.i.S.C. § 7602( !): "[t]he ter m 'PM - 10' me;;tm:

**p~tr(icu atc:**  ma(t er wi t h an nerodynamic diameter J ess tha n or equa l to a nominal t e n micrometers, as tnc;ts ur cd by :lt 1ch meth o d <1:; tbe Administrator may d ete rm i n e." lv'RDC', 706 F.3 d HI **136.** This definit io n is appliq t ble to tile en t ire CAA. 42 U.S . C. § 7602. The couri held that PM?..:l· being "particulntc matte r (P1vf) h aving a d ia m et er eq u al ln or **~t: :;**  than 2.) mic r ome t ers," 706 F.Jd at 428 (citat i on omi tted ). was included in the piHin

**lnngtHtg<~** of the PM 10 definition. !d. at 436 . Ba se d o n the NRD(' co urt 's anaiysis, the language used in Section J 66(f) regarding "pa1·ticulatc matter \-virh an aero dynamic diameter sma ller than or eq ual to 10 micr ome t ers," includes
**Piv h.~**  ns 8 matter or law. Th e A d min ist rato r 's au th o ri ty to **sub~tiiutc** a **PM;~ 5**  incrcmc . nt ft)r ihc ex i sting pa rticula te matte r increm e nt under Section 166 (f) is con di tioned on the s ubs!itu t.c d i ncrement

**b~ ng**  of''eq ual st ri ngen cy" as th e prior-increment. 42 '( i.S.C . **~** 74 7(,( f). Appl ying the holding of th e N RDC d ecision , it v,•ould

**lx~** i llogica l for Co ngre ss t o res tr ict. EPA 's discretion in a ddr essing $ ma il er si zes of PM through S.ect ion l66(f) \ vhilc allowing EPA to **~~imply** b ypass t h at r estriction

by using Section 166(a) r.o treat th e sma l ler size of PM **~1s** a new pollutant. S'ec :V!UX ..', 706 F.3d at 436. L ks pite thi .s **n~striction** on EPA 's authority i n Sec - tion J 66(i'). E PA has used l 66(a) in setting r he ba seline da te for PM2 5 . 61\.'. titioner submit s that t he rnaior s ource base line :. date in the:: 1n crcmcnt Ru le is of centra l **r~lcvance~** to the outco me or the rul e'' an d that. the grounds for Pcrit.inner's objec tion, i .e., E PA 's refusal to fu ll y co m ply \Vit h the NRDC decision, arusc <:lf·k .r the initial co n1m c i1t period for th e rule. Th e Stat e therefo r e j .Jel ition s

LP.A to reconsid er the tnn_ior so urce ba sel in e date in t he Increment Rule in ligh t or t he NNDC decision. Pet i tio n er requcsrs th at EPA mnend the r u le to incorporate

**th~** mH_jor st"l\ 1! -ce baseiine dat e of I 975 [n accordance \Vith t he D.C. C irc. u it Court 's \ "J)l··c·· l . . ('

**~** 1 1 S (., >:. ,. - ... () \'!)[ " ("' 7(6 1 ··"" !.1 28- ;' \ _) . <.eC J S I OD . .JeC) ;,, . . -. **~** ))_) C ; i \ ) ., l · .. )( . (. CONCLlJS ION [P/\ s hould grant re c:o nsideration of the PM 2 __5 m a _jor sourc e ba se li ne da te i n rhe **lncrcnH**

**:~**

**t** Rule. E PA s hould initiat e ru lem aking procedur es in order lo am end tlw lncr ernc nt R ule ro co rre ct t he baseline dat e for major sources in accorda nce with the D.C. Circuit Court':) dec ision in NRDC , 706 F.J d 428. 7.J Da.t.:d D<:'Ct :mb e r **j:~:.** 2 0 !J . Hespectfu ll y sub mitted, ROY COOPE R AUorney Genera l By **t~!..tb.c~ld~:=cd.** __ _ _ __ Br en da Menard By :
Sp ecia l Deputy Attorney G e nera l N.C . S tat e Bar No. 35445 b menard@ ) ncdoj .gov **{;;/~~~ --**  **····..t't'::::2.±!:.~-** .. **L~.-~-- -·**  **--· ~·**  ..........
**··-**
**··- ·----**  **·- ·-**  Sc ott C on klin Assis t ant. Attorney Genera l

N.C. Stat e Bar No. 2S257 sconkl in @ncdoj.gov

N.C. Department of Justice P .O. Box 629 Raleigh, Nor t h Carolina 27602-06 2 9 Ph one Number: (919) 71.6-6600 Fax Number: (9 19 ) 716 - 676 7