[Federal Register Volume 89, Number 6 (Tuesday, January 9, 2024)]
[Proposed Rules]
[Pages 1150-1189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27759]



[[Page 1149]]

Vol. 89

Tuesday,

No. 6

January 9, 2024

Part II





 Environmental Protection Agency





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40 CFR Parts 70 and 71





Clarifying the Scope of ``Applicable Requirements'' Under State 
Operating Permit Programs and the Federal Operating Permit Program; 
Proposed Rule

Federal Register / Vol. 89 , No. 6 / Tuesday, January 9, 2024 / 
Proposed Rules

[[Page 1150]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 70 and 71

[EPA-HQ-OAR-2023-0401; FRL-9118-01-OAR]
RIN 2060-AV61


Clarifying the Scope of ``Applicable Requirements'' Under State 
Operating Permit Programs and the Federal Operating Permit Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) proposes to update 
its title V operating permit program regulations to more clearly 
reflect the EPA's existing interpretations and policies concerning when 
and whether ``applicable requirements'' established in other Clean Air 
Act (CAA or the Act) programs should be reviewed, modified, and/or 
implemented through the title V operating permits program. 
Specifically, this action clarifies the limited situations in which 
requirements under the New Source Review (NSR) preconstruction 
permitting program would be reviewed using the EPA's unique title V 
oversight authorities. Additionally, this action clarifies that 
requirements related to an owner or operator's general duty to prevent 
accidental releases of hazardous substances are not ``applicable 
requirements'' for title V purposes and are not implemented through 
title V.

DATES: Comments: Comments must be received on or before March 11, 2024. 
Public hearing: If anyone contacts the EPA requesting a public hearing 
by January 15, 2024, the EPA will hold a virtual public hearing. Please 
refer to the SUPPLEMENTARY INFORMATION section for additional 
information on requesting and registering for a public hearing.

ADDRESSES: You may send comments, identified by Docket ID No. EPA-HQ-
OAR-2023-0401, by any of the following methods:
    <bullet> Federal eRulemaking Portal: https://www.regulations.gov 
(our preferred method). Follow the online instructions for submitting 
comments.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#bedf93dfd0da93cc93dad1ddd5dbcafedbcedf90d9d1c8"><span class="__cf_email__" data-cfemail="abca86cac5cf86d986cfc4c8c0cedfebcedbca85ccc4dd">[email protected]</span></a>. Include Docket ID No. EPA-
HQ-OAR-2023-0401 in the subject line of the message.
    <bullet> Fax: (202) 566-9744. Attention Docket ID No. EPA-HQ-OAR-
2023-0401.
    <bullet> Mail: U.S. Environmental Protection Agency, EPA Docket 
Center, OAR Docket, Mail Code 28221T, 1200 Pennsylvania Avenue NW, 
Washington, DC 20460.
    <bullet> Hand Delivery or Courier: EPA Docket Center, WJC West 
Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. 
The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m., 
Monday-Friday (except Federal Holidays).
    Instructions: All submissions received must include the Docket ID 
No. for this rulemaking. Comments received may be posted without change 
to https://www.regulations.gov, including any personal information 
provided. For detailed instructions on sending comments and additional 
information on the rulemaking process, see the SUPPLEMENTARY 
INFORMATION section of this document.

FOR FURTHER INFORMATION CONTACT: Mr. Matthew Spangler, Air Quality 
Policy Division, Office of Air Quality Planning and Standards (C504-
05), Environmental Protection Agency, Research Triangle Park, NC; 
telephone number: (919) 541-0327; email address: 
<a href="/cdn-cgi/l/email-protection#037073626d646f66712d6e6277776b6674436673622d646c75"><span class="__cf_email__" data-cfemail="e794978689808b8295c98a8693938f8290a7829786c9808891">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The Information presented in this document 
is organized as follows:

I. Public Participation in This Proposed Rulemaking
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
    C. What should I consider as I prepare my comments?
    D. How do I request and participate in a virtual public hearing?
II. Purpose of This Regulatory Action
III. Background on Title V Operating Permits and CAA ``Applicable 
Requirements''
    A. The Title V Permitting Process, Public Participation, and the 
EPA's Oversight Role
    B. Purpose and Function of Title V Permits
    C. Regulatory Definition of ``Applicable Requirements''
    D. Requirements That Are Not ``Applicable Requirements'' for 
Purposes of Title V Permitting
    E. Self-Implementing Applicable Requirements (e.g., NSPS, 
NESHAP)
    F. Requirements Defined Through Title V Permitting
    G. Applicable Requirements Related to the NAAQS and SIPs
IV. Interface Between NSR and Title V Permitting
    A. Background: Historical and Current EPA Positions
    B. Proposed Action
    C. Interaction With NSR Permitting, Oversight, and Enforcement
    D. Impacts of Proposed Action
    E. Rationale for Proposed Action
    F. Alternative Approaches
V. The General Duty Clause Concerning the Prevention of Accidental 
Releases of Hazardous Substances
    A. Background and Summary of Proposed Action
    B. Rationale for Proposed Action
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review, 
Executive Order 13563: Improving Regulation and Regulatory Review, 
and Executive Order 14094: Modernizing Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)
    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations and Executive Order 14096: Revitalizing Our Nation's 
Commitment to Environmental Justice for All
VII. Statutory Authority

I. Public Participation in This Proposed Rulemaking

A. Does this action apply to me?

    Entities potentially affected by this proposed rulemaking include 
state, local, and Tribal air pollution control agencies that administer 
title V operating permit programs (``permitting authorities''), owners 
and operators of emissions sources in all industry groups who hold or 
apply for title V operating permits, and any person or group who 
participates in the title V permitting process.

B. Where can I get a copy of this document and other related 
information?

    The EPA has established a docket for this rulemaking under Docket 
ID No. EPA-HQ-OAR-2023-0401. All documents in the docket pertaining to 
this action are listed on the https://www.regulations.gov website. 
Although listed in the index, some information may not be publicly 
available, e.g., Confidential Business Information (CBI), Proprietary 
Business Information (PBI), or other information whose disclosure is 
restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the internet and may be viewed with prior 
arrangement with the EPA Docket Center. In addition to being available 
in the docket, an electronic copy of this Federal Register document 
will be posted at https://www.epa.gov/title-v-operating-permits/current-regulations-and-regulatory-actions.

[[Page 1151]]

Additionally, a number of documents that are relevant to this proposed 
action--in particular, prior EPA orders responding to petitions 
challenging individual title V permits--are available through the EPA's 
website at https://www.epa.gov/title-v-operating-permits/title-v-petition-database.

C. What should I consider as I prepare my comments?

    Submit your comments, identified by Docket ID No. EPA-HQ-OAR-2023-
0401, at https://www.regulations.gov (our preferred method), or the 
other methods identified in the ADDRESSES section. Once submitted, 
comments cannot be edited or removed from the docket. The EPA may 
publish any comment received to its public docket.
    Do not submit information containing CBI to the EPA through https://www.regulations.gov. Clearly mark the part or all of the information 
that you claim to be CBI. For CBI information on any digital storage 
media that you mail to the EPA, mark the outside of the digital storage 
media as CBI and then identify electronically within the digital 
storage media the specific information that is claimed as CBI. In 
addition to one complete version of the comments that includes 
information claimed as CBI, you must submit a copy of the comments that 
does not contain the information claimed as CBI directly to the public 
docket through the procedures outlined in Instructions. If you submit 
any digital storage media that does not contain CBI, mark the outside 
of the digital storage media clearly that it does not contain CBI. 
Information not marked as CBI will be included in the public docket and 
the EPA's electronic public docket without prior notice. Information 
marked as CBI will not be disclosed except in accordance with 
procedures set forth in 40 Code of Federal Regulations (CFR) part 2. 
Our preferred method to receive CBI is for it to be transmitted 
electronically using email attachments, File Transfer Protocol (FTP), 
or other online file sharing services (e.g., Dropbox, OneDrive, Google 
Drive). Electronic submissions must be transmitted directly to the 
OAQPS CBI Office using the email address, <a href="/cdn-cgi/l/email-protection#3d525c4c4d4e5e5f547d584d5c135a524b"><span class="__cf_email__" data-cfemail="0d626c7c7d7e6e6f644d687d6c236a627b">[email protected]</span></a>, and should 
include clear CBI markings as described later. If assistance is needed 
with submitting large electronic files that exceed the file size limit 
for email attachments, and if you do not have your own file sharing 
service, please email <a href="/cdn-cgi/l/email-protection#d4bbb5a5a4a7b7b6bd94b1a4b5fab3bba2"><span class="__cf_email__" data-cfemail="ff909e8e8f8c9c9d96bf9a8f9ed1989089">[email protected]</span></a> to request a file transfer link. 
If sending CBI information through the postal service, please send it 
to the following address: OAQPS Document Control Officer (C404-02), 
OAQPS, U.S. Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711, Attention Docket ID No. EPA-HQ-OAR-2023-0401. The 
mailed CBI material should be double wrapped and clearly marked. Any 
CBI markings should not show through the outer envelope.

D. How do I request and participate in a virtual public hearing?

    To request a virtual public hearing, contact Ms. Pam Long at (919) 
541-0641 or by email at <a href="/cdn-cgi/l/email-protection#2f43404148015f4e426f4a5f4e01484059"><span class="__cf_email__" data-cfemail="4d2122232a633d2c200d283d2c632a223b">[email protected]</span></a> by January 15, 2024. If 
requested, the virtual hearing will be held on January 24, 2024. The 
hearing will convene at 9:00 a.m. Eastern Time (ET) and will conclude 
at 3:00 p.m. ET. The EPA may close a session 15 minutes after the last 
pre-registered speaker has testified if there are no additional 
speakers. The EPA will announce further details at https://www.epa.gov/title-v-operating-permits.
    Upon publication of this document in the Federal Register, the EPA 
will begin pre-registering speakers for the hearing, if a hearing is 
requested. To register to speak at the virtual hearing, please use the 
online registration form available at https://www.epa.gov/title-v-operating-permits or contact Ms. Pam Long at (919) 541-0641 or by email 
at <a href="/cdn-cgi/l/email-protection#65090a0b024b150408250015044b020a13"><span class="__cf_email__" data-cfemail="117d7e7f763f61707c517461703f767e67">[email protected]</span></a>. The last day to pre-register to speak at the 
hearing will be January 22, 2024. Prior to the hearing, the EPA will 
post a general agenda that will list pre-registered speakers in 
approximate order at: https://www.epa.gov/title-v-operating-permits.
    The EPA will make every effort to follow the schedule as closely as 
possible on the day of the hearing; however, please plan for the 
hearing to run either ahead of schedule or behind schedule.
    Each commenter will have 3 minutes to provide oral testimony. The 
EPA encourages commenters to provide the EPA with a copy of their oral 
testimony electronically (via email) by emailing it to 
<a href="/cdn-cgi/l/email-protection#d8b4b7b6bff6a8b9b598bda8b9f6bfb7ae"><span class="__cf_email__" data-cfemail="15797a7b723b657478557065743b727a63">[email protected]</span></a>. The EPA also recommends submitting the text of your 
oral testimony as written comments to the rulemaking docket.
    The EPA may ask clarifying questions during the oral presentations 
but will not respond to the presentations at that time. Written 
statements and supporting information submitted during the comment 
period will be considered with the same weight as oral testimony and 
supporting information presented at the public hearing.
    Please note that any updates made to any aspect of the hearing will 
be posted online at https://www.epa.gov/title-v-operating-permits. 
While the EPA expects the hearing to go forward as set forth earlier, 
please monitor our website or contact Ms. Pam Long at (919) 541-0641 or 
by email at <a href="/cdn-cgi/l/email-protection#e4888b8a83ca948589a4819485ca838b92"><span class="__cf_email__" data-cfemail="bcd0d3d2db92ccddd1fcd9ccdd92dbd3ca">[email protected]</span></a> to determine if there are any updates. The 
EPA does not intend to publish a document in the Federal Register 
announcing updates.
    If you require the services of a translator or special 
accommodations such as audio description, please pre-register for the 
hearing with Ms. Pam Long and describe your needs by January 16, 2024. 
The EPA may not be able to arrange accommodations without advanced 
notice.

II. Purpose of This Regulatory Action

    This rulemaking concerns the relationship between the CAA's title V 
operating permit program and certain types of ``applicable 
requirements'' established under different sections of the CAA. Many of 
the EPA's past statements on this topic are included within the EPA 
Administrator's responses to citizen petitions challenging title V 
permits issued to individual facilities. Though publicly available, 
these Orders may not be widely read by members of the public and/or 
permitting authorities. This rulemaking is intended to bring greater 
awareness to the EPA's current approach to ``applicable requirements'' 
within the context of title V so that the public, permitting 
authorities, and the EPA can focus their resources on using the title V 
permitting process to address issues that can be most effectively 
resolved through title V. Specifically, this proposed rule addresses 
three issues that have been the source of public interest and, at 
times, misunderstanding. This rule also proposes to update the EPA's 
regulations to better express the EPA's existing positions on these 
topics.
    First, section III. of this preamble includes background on the 
EPA's existing position regarding general topics involving ``applicable 
requirements,'' which the EPA does not propose to change. In summary, 
the title V operating permit program is a vehicle for compiling air 
quality control requirements from other CAA programs and for providing 
conditions necessary to assure compliance with such requirements, but 
it is not a vehicle for creating or changing applicable requirements 
from those other programs. The EPA has a regulatory definition of the 
term ``applicable requirement'' that guides the interaction between 
title V and other CAA programs. Some programs establish ``self-
implementing'' requirements that

[[Page 1152]]

can be incorporated into title V permits without further review. Other 
programs contain only general requirements that can, in certain 
circumstances, be further defined through title V. Section III.G. of 
this preamble summarizes existing EPA positions about how these 
concepts affect requirements related to the National Ambient Air 
Quality Standards (NAAQS) and State Implementation Plans (SIPs).
    Second, Section IV. of this preamble addresses the intersection 
between title V operating permits and NSR preconstruction permits 
issued under title I of the CAA and focuses on the limited situations 
in which NSR requirements would be reviewed using the EPA's unique 
title V oversight authorities.
    Section IV.A. discusses the EPA's historical and current positions 
on the intersection between permits issued under title I and title V, 
which have changed over time. Section IV.B. explains in more detail the 
EPA's existing position, which the EPA proposes to codify through this 
rulemaking. In summary, the EPA's current position is that provided a 
source obtains an NSR permit under EPA-approved (or EPA-promulgated) 
title I rules, with public notice and the opportunity for comment and 
judicial review, such NSR permit establishes the NSR-related 
``applicable requirements'' of the SIP (or Federal Implementation Plan, 
FIP) for purposes of incorporation into a title V permit. As with 
``applicable requirements'' established under other CAA authorities, 
the EPA would not revisit those NSR permitting decisions through the 
title V process. The EPA's framework applies similarly regardless of: 
(i) the stage of the title V permitting or oversight process at issue; 
(ii) the NSR permit's origin (i.e., from a SIP or a FIP), (iii) the 
type of substantive NSR requirement at issue (e.g., NSR permit terms or 
major NSR applicability); and (iv) the procedures by which the NSR 
permit is incorporated into the title V permit (e.g., sequentially or 
concurrently issued permits). However, there are situations in which 
the title V permitting process is the appropriate venue for addressing 
NSR permitting issues, including where NSR requirements have not been 
established through a sufficient title I permitting process, or where 
NSR issues and title V issues involve substantive overlap. Although the 
EPA believes that the existing regulations may properly be read to 
support the EPA's existing position, the EPA proposes amendments to 
make this position more explicit. Updating the EPA's regulations will 
allow the agency to apply its existing approach nationwide and will 
resolve issues stemming from conflicting court decisions from two 
federal Courts of Appeals.
    Section IV.C. discusses the extent to which this proposal will (or 
will not) impact NSR permitting, NSR oversight tools, and NSR 
enforcement tools. Section IV.D. further discusses the limited impacts 
this proposed rule is expected to have on the EPA, permitting 
authorities, regulated entities, and the public. Overall, this proposed 
rule is meant to provide clarity about the appropriate mechanisms that 
should be used to address concerns with NSR permits. This proposed rule 
should create an incentive for permitting authorities to offer 
opportunities for meaningful public involvement in NSR permitting 
actions, and should encourage the public to take advantage of those 
opportunities (instead of attempting to use title V oversight tools to 
resolve concerns with NSR permits).
    Section IV.E. details the EPA's legal and policy rationale for the 
EPA's existing (and proposed to be codified) position. In sum, the 
EPA's interpretation is supported by the text of title V, the structure 
and purpose of title V, and the structure of the CAA as a whole. The 
EPA has the discretion under the statute to apply this approach, which 
reflects better policy than alternative approaches. This proposed rule 
ensures that applicable requirements established in different CAA 
programs are treated consistently in title V permitting. The EPA's 
proposal better accounts for procedural, resource-related, and 
practical limitations associated with title V oversight tools while 
incentivizing the use of proper title I avenues of review. Lastly, this 
approach respects the finality of NSR permitting decisions.
    Section IV.F. solicits comment on three alternative approaches that 
would involve using title V permits to address substantive NSR issues 
in additional, targeted situations, while explaining why these 
alternatives are not preferred by the EPA.
    Third, Section V. of this preamble addresses a distinct and 
severable topic related to the ``General Duty Clause'' of CAA section 
112(r)(1), which concerns the prevention of accidental releases of 
hazardous substances. This proposal seeks to codify the EPA's well-
established position that this General Duty Clause is not an 
``applicable requirement'' and is not implemented through title V.

III. Background on Title V Operating Permits and CAA ``Applicable 
Requirements''

    This section of the preamble contains background information about 
the title V program and explains how different types of ``applicable 
requirements'' of the CAA are treated in title V permits. This 
discussion is intended to clarify multiple related topics that may have 
been a source of confusion to the public, regulated entities, and 
permitting authorities over the years. The EPA is not proposing any 
changes to the agency's longstanding interpretations or policies 
discussed in this section. The EPA also considers these interpretations 
and policies to be consistent with, and accurately reflected in, the 
EPA's existing regulations in 40 CFR parts 70 and 71. Thus, the EPA is 
not proposing to revise the EPA's regulations in order to reflect these 
existing interpretations and policies.\1\
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    \1\ By contrast, the EPA is proposing to revise the EPA's 
regulations to more clearly reflect the EPA's positions regarding 
the issues discussed in sections IV. and V. of this preamble.
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A. The Title V Permitting Process, Public Participation, and the EPA's 
Oversight Role

    Congress amended the CAA in 1990 to add, among other provisions, 
title V. CAA Amendments of 1990, Public Law 101-549, sections 501-507, 
104 Stat. 2399, 2635-48 (1990) (codified at 42 U.S.C. 7661-7661f). 
Title V established an operating permit program for major sources of 
air pollution and certain other sources.
    The title V program, like other provisions of the CAA, involves an 
exercise of cooperative federalism, meaning that responsibility for the 
program is divided between states and the EPA. Under title V, states 
were required to develop and submit to the EPA for approval title V 
permitting programs consistent with requirements promulgated by the EPA 
in 40 CFR part 70. 42 U.S.C. 7661a(b), (d).\2\ Most states, certain 
local agencies, and one Tribe now have approved part 70 programs. Under 
these EPA-approved state programs, permitting authorities issue the 
vast majority of title V permits (this preamble refers to such permits 
as ``state-issued'' permits). The EPA directly issues title V permits 
only in limited circumstances.\3\
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    \2\ For information about EPA oversight over the content and 
implementation of EPA-approved state part 70 programs, see 42 U.S.C. 
7661a(i) and 40 CFR 70.10.
    \3\ Under 40 CFR part 71, the EPA (or an agency delegated to 
issue permits on EPA's behalf) issues title V permits to sources in 
most areas of Indian Country, on the Outer Continental Shelf, 
jurisdictions where the EPA has determined that a state has not 
adequately implemented its part 70 program, and for specific sources 
where a state has not satisfied an EPA objection to, or reopening 
of, a state-issued permit. See 40 CFR 71.4.

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[[Page 1153]]

    Most title V permit actions (including initial permits, renewal 
permits, and significant permit modifications) involve public notice 
and an opportunity for comment and a hearing on draft permits and 
revisions. See 42 U.S.C. 7661a(b)(6); 40 CFR 70.4(d)(3)(iv), 70.7(h). 
These opportunities are similar to those provided in other CAA 
programs.
    Additionally, Congress provided the EPA and the public with unique 
oversight tools for state-issued title V permits. The CAA requires 
permitting authorities to submit a proposed title V permit to the EPA 
Administrator for review for a 45-day review period before issuing the 
permit as final. 42 U.S.C. 7661d(a)(1); 40 CFR 70.8(a). The 
Administrator shall object to issuance of a proposed permit within that 
45-day review period if the Administrator determines that the permit 
does not satisfy applicable requirements of the CAA or the requirements 
of part 70. 42 U.S.C. 7661d(b)(1); 40 CFR 70.8(c). If the Administrator 
does not object to a permit during the 45-day EPA review period, any 
person may petition the Administrator within 60 days after the 
expiration of the 45-day review period to take such action (hereinafter 
``title V petition'' or ``petition''). 42 U.S.C. 7661d(b)(2), 40 CFR 
70.8(d), 70.12, 70.13, 70.14. Many of the issues concerning 
``applicable requirements'' that are addressed in this rulemaking have 
been raised, and addressed, in title V petitions and the EPA's orders 
responding to such petitions.\4\
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    \4\ For more information about title V petitions, see the 
preambles of the proposed and final petitions rule, 81 FR 57822 
(Aug. 24, 2016) and 85 FR 6431 (Feb. 5, 2020). Copies of petitions 
and the EPA's petition orders are available on the EPA's public 
title V petitions database, https://www.epa.gov/title-v-operating-permits/title-v-petition-database.
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    The CAA also provides the EPA with the authority--at the agency's 
discretion--to determine that cause exists to ``terminate, modify, or 
revoke and reissue'' a state-issued title V permit. 42 U.S.C. 7661d(e). 
This process is often called ``reopening for cause'' and is described 
in 40 CFR 70.7(f) and (g). Among other criteria, a permit may be 
reopened for cause when necessary to assure compliance with applicable 
requirements. 40 CFR 70.7(f)(1)(iv).
    Although this proposed rule is primarily focused on the EPA's 
oversight of state-issued title V permits, the concepts discussed in 
this preamble related to ``applicable requirements'' are relevant to 
nearly all aspects of the title V permitting process in some shape or 
form. For example, these concepts guide the information that permittees 
must include in title V permit applications, the required content of 
title V permits drafted and issued by permitting authorities (including 
the EPA), the scope of issues properly subject to the public's input 
during the title V permitting process, and the scope of issues 
considered by the EPA in exercising its oversight roles (including the 
EPA's review of title V permits issued by states and consideration of 
citizen petitions on those permits).

B. Purpose and Function of Title V Permits

    The title V permitting program was created to assist with 
compliance and enforcement of air pollution controls established under 
other CAA programs. Before this program existed, the CAA pollution 
control requirements that might apply to a particular source could be 
found in many different provisions of the Act along with various 
federal and state regulations and permits. One court opinion summarized 
the relationship between title V and other CAA programs as follows:

    Under the regulatory regime established by the [CAA], emission 
limits for pollutants and monitoring requirements that measure 
compliance applicable to any given stationary source of air 
pollution are scattered throughout rules promulgated by states or 
EPA, such as [SIPs], new source performance standards [NSPS], and 
national emission standards for hazardous air pollutants [NESHAP]. 
Before 1990, regulators and industry were left to wander through 
this regulatory maze in search of the emission limits and monitoring 
requirements that might apply to a particular source. Congress 
addressed this confusion in the 1990 Amendments by adding title V of 
the Act, which created a national permit program that requires many 
stationary sources of air pollution to obtain permits that include 
relevant emission limits and monitoring requirements.

Sierra Club v. EPA, 536 F.3d 673, 674 (D.C. Cir. 2008) (citations 
omitted).
    Thus, one key function of title V is to consolidate applicable 
requirements established under other CAA programs. This consolidation 
function is embodied in CAA section 504(a), which states, in part: 
``Each permit issued under this subchapter shall include enforceable 
emission limitations and standards . . . and such other conditions as 
are necessary to assure compliance with applicable requirements of this 
chapter, including the requirements of the applicable implementation 
plan.'' 42 U.S.C. 7661c(a). The EPA's regulations implementing title V 
contain language similar to the statute. See 40 CFR 70.6(a)(1), 
71.6(a)(1).\5\ The EPA's regulations also require that ``The permit 
shall specify and reference the origin of and authority for each term 
or condition, and identify any difference in form as compared to the 
applicable requirement upon which the term or condition is based.'' 40 
CFR 70.1(a)(1)(i), 71.1(a)(1)(i).
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    \5\ The EPA's regulations also define the specific ``applicable 
requirements'' with which each title V permit must assure 
compliance. 40 CFR 70.2, 71.2. The definition and concept of 
``applicable requirements'' are discussed in more detail later in 
this preamble.
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    In addition to consolidating existing applicable requirements, CAA 
section 504 provides the EPA with the authority to use title V permits 
to establish additional requirements necessary to assure compliance 
with existing applicable requirements. For example, it is well 
established that title V permits may be used to create or supplement 
monitoring requirements when necessary in order to assure compliance 
with underlying applicable requirements that do not themselves contain 
sufficient monitoring provisions.\6\ Various compliance assurance 
requirements are included within title V and the EPA's implementing 
regulations; not all are restricted to monitoring.\7\
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    \6\ See 42 U.S.C. 7661c(c); 40 CFR 70.6(c)(1); Sierra Club v. 
EPA, 536 F.3d 673, 674-45, 680 (D.C. Cir. 2008) (``Title V did more 
than require the compilation in a single document of existing 
applicable emission limits and monitoring requirements. It also 
mandated that `[e]ach permit issued under [Title V] shall set forth 
. . . monitoring . . . requirements to assure compliance with the 
permit terms and conditions.' . . . [T]he Act requires: a permitting 
authority may supplement an inadequate monitoring requirement so 
that the requirement will `assure compliance with the permit terms 
and conditions.' '' (citations omitted)); see also, e.g., In the 
Matter of CITGO Refining and Chemicals Co., L.P., West Plant, Order 
on Petition No. VI-2007-01 at 6-8 (May 28, 2009).
    \7\ See 42 U.S.C. 7661c(a), (b), (c); 40 CFR 70.6(a)(1), (a)(3), 
(c), 71.6(a)(1), (a)(3), (c); see also, e.g., In the Matter of 
Suncor Energy (U.S.A.), Inc., Commerce City Refinery, Plant 2 
(East), Order on Petition Nos. VIII-2022-13 & VIII-2022-14 at 13-17 
(July 31, 2023) (Suncor East Order).
---------------------------------------------------------------------------

    Beyond title V's consolidation and compliance assurance functions, 
title V generally does not impose new pollution control requirements on 
sources or provide a vehicle to modify such requirements established 
under other CAA programs. Thus, the EPA's regulations expressly 
provide: ``All sources subject to these regulations shall have a permit 
to operate that assures compliance by the source with all applicable 
requirements. While title V does not impose substantive new 
requirements, it does require that . . . certain procedural measures be 
adopted especially with respect to compliance.'' 40 CFR 70.1(b) 
(emphasis added). For

[[Page 1154]]

additional information about the purpose and function of title V, see 
section IV.E.2. of this preamble.
    In summary, the title V operating permit program is a vehicle for 
compiling air quality control requirements from other CAA programs and 
for providing requirements necessary to assure compliance with such 
requirements, but not for creating or changing applicable requirements. 
Put simply, title V is a catch-all, not a cure-all. The discussion 
throughout the remainder of this preamble builds upon these 
longstanding general principles, which the EPA does not propose to 
change through this rulemaking.

C. Regulatory Definition of ``Applicable Requirements''

    As previously explained, CAA section 504(a) requires that title V 
permits ``include enforceable emissions limitations and standards . . . 
and such other conditions as are necessary to assure compliance with 
applicable requirements of this chapter, including the requirements of 
the applicable implementation plan.'' 42 U.S.C. 7661c(a).\8\ However, 
the term ``applicable requirements'' is not defined in the Act and the 
statute does not otherwise specify how to determine the ``applicable 
requirements of this chapter'' for a particular source. When the EPA 
developed regulations to implement the title V program, the agency 
specifically defined the term ``applicable requirement'' as it relates 
to title V permitting. This subsection of the preamble addresses 
general topics associated with this regulatory definition. The 
subsections that follow elaborate on these general concepts with more 
specific examples about how these concepts impact different types of 
requirements.
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    \8\ Similar requirements appear in other parts of title V. 
``Schedule of compliance. The term `schedule of compliance' means a 
schedule of remedial measures, including an enforceable sequence of 
actions or operations, leading to compliance with an applicable 
implementation plan, emission standard, emission limitation, or 
emission prohibition'' 42 U.S.C. 7661(3). ``Nothing in this 
subsection shall be construed to alter the applicable requirements 
of this chapter that a permit be obtained before construction or 
modification.'' 42 U.S.C. 7661a(a). Permitting authorities ``have 
adequate authority to . . . issue permits and assure compliance . . 
. with each applicable standard, regulation, or requirement under 
this chapter.'' 42 U.S.C. 7661a(b)(5). The regulations to implement 
the program shall include a ``requirement that the applicant submit 
with the application a compliance plan describing how the source 
will comply with all applicable requirements under this chapter.'' 
42 U.S.C. 7661b(b). However, like section 504, these sections do not 
specify the scope of the term ``applicable requirements'' or how the 
permitting authority or the EPA is to determine what the applicable 
requirements are for an individual source as part of its title V 
permit.
---------------------------------------------------------------------------

    As an initial matter, it is important to recognize that 
``applicable requirement'' is a legal term of art with a precise 
meaning that is unique to title V. Its meaning is closely aligned with 
the primary function of title V permits: to consolidate and assure 
compliance with the substantive requirements established under other 
CAA programs. Thus, in general, the EPA's definition of ``applicable 
requirement'' focuses on those substantive requirements of other CAA 
programs that must be incorporated into a source's title V permit, and 
with which the title V permit must assure compliance. This means that 
not all CAA requirements are considered ``applicable requirements'' for 
title V purposes. However, the fact that some CAA requirements are not 
considered ``applicable requirements'' for title V purposes does not 
diminish the independent enforceability or importance of those 
requirements. It simply means that those requirements are not primarily 
implemented or enforced using title V permits.
    The EPA's regulations define ``applicable requirement'' to mean 
``all of the of the following as they apply to emissions units in a 
part 70 source,'' \9\ followed by a list of 13 types of CAA-based 
requirements that qualify. 40 CFR 70.2; see 40 CFR 71.2 (similar 
definition).\10\
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    \9\ This definition also indicates that requirements that have 
been promulgated or approved at the time of permit issuance, but 
with which the source is not yet required to comply, are applicable 
requirements that must be included in a title V permit. 40 CFR 70.2, 
71.2. The EPA is not aware of any issues or confusion concerning 
this element of the definition, which is not discussed further in 
this preamble.
    \10\ The list includes, in summary, requirements from: (1) SIPs 
and FIPs under CAA title I; (2) preconstruction permits under CAA 
title I; (3) CAA section 111 (NSPS and existing source rules); (4) 
CAA section 112 (NESHAP); (5) title IV (acid rain); (6) CAA sections 
504(b) or 114(a)(3) (certain types of enhanced monitoring); (7) CAA 
sections 126(a)(1) and (c) (interstate pollution); (8) CAA section 
129 (solid waste incineration); (9) CAA section 183(e) (consumer and 
commercial products); (10) CAA section 193(f) (tank vessels); (11) 
CAA section 328 (outer continental shelf permits); (12) CAA title VI 
(stratospheric ozone); and (13) any NAAQS, but only as it would 
apply to temporary sources under CAA section 504(e).
---------------------------------------------------------------------------

    Perhaps the most straightforward aspect of this definition is that, 
in order to qualify as an ``applicable requirement'' for title V 
purposes, the requirement must be based on the CAA and, more 
specifically, one of the CAA sections specifically identified in this 
definition. Requirements that are not based on (i.e., derived from) the 
CAA are not ``applicable requirements'' of the CAA with which a title V 
permit must assure compliance. Further, not all CAA requirements 
qualify as ``applicable requirements'' for title V purposes. Some 
sections of the CAA were intentionally omitted from the list of 13 
types of ``applicable requirements'' because these sections either do 
not apply to stationary sources that must obtain title V permits, or 
these sections are not implemented through title V for other reasons. 
See section III.D.2. of this preamble for more information.
    A similarly important definitional element is that ``applicable 
requirements'' only include the listed types of CAA requirements ``as 
they apply to emission units in a part 70 source.'' Requirements of the 
CAA that do not directly apply to a source's emission units are not 
``applicable requirements'' for title V purposes, as discussed in 
section III.D.3. of this preamble.
    Additionally, the requirements of title V itself (and the EPA's 
part 70 and 71 implementing regulations) are not technically considered 
``applicable requirements'' but are nonetheless centrally important to 
title V permitting. See section III.D.4. of this preamble for more 
information.
    The definition of ``applicable requirement'' can also affect the 
manner in which requirements that are considered applicable 
requirements are implemented through title V. In summary, some 
applicable requirements can be described as ``self-implementing.'' Once 
established, those requirements should entail little to no review 
through the title V permitting process. Other applicable requirements 
may require further site-specific evaluation in order to define the 
precise requirements that apply to individual emission units. In 
certain circumstances, the latter type of applicable requirements may 
be further defined using the title V permitting process. These topics 
are discussed in more detail in sections III.E. and III.F. of this 
preamble.

D. Requirements That Are Not ``Applicable Requirements'' for Purposes 
of Title V Permitting

    Sources subject to title V may be subject to a variety of 
requirements both within and beyond the CAA. Not all of these 
requirements are ``applicable requirements'' that must be included in a 
title V permit and with which the title V permit must assure 
compliance. Requirements that are not applicable requirements fall into 
several categories, discussed in the following subsections.

[[Page 1155]]

1. Requirements Not Derived From the CAA
    Many sources subject to title V are also subject to federal laws 
beyond the CAA, including environmental laws administered by the EPA or 
other federal agencies (e.g., the Clean Water Act (CWA); Safe Drinking 
Water Act; Resource Conservation and Recovery Act (RCRA); Comprehensive 
Environmental Response, Compensation, and Liability Act; National 
Environmental Policy Act, Emergency Planning and Community Right-to-
Know Act, Endangered Species Act, and other statutes). Other federal 
laws may also impact the decision-making of state permitting 
authorities (e.g., the Civil Rights Act of 1964). These other federal 
laws--including the statutes and any implementing regulations--are not 
``applicable requirements'' for title V purposes. Such requirements do 
not need to be included in title V permits, and title V permits do not 
need to assure compliance with these requirements. Further, whether a 
permittee or permitting authority has satisfied those requirements is 
beyond the scope of issues that the EPA can address through its title 
V-based oversight authorities, including the EPA's objection authority 
and public petition opportunity.\11\ This is self-evident from the 
plain language of the CAA and the EPA's regulations, which limit the 
EPA's objection authority to permits that ``are not in compliance with 
the applicable requirements of [the CAA].'' 42 U.S.C. 7661b(1), (2); 
see 40 CFR 70.8(c)(1), 70.12(a)(2). Nonetheless, the EPA sometimes 
receives title V petitions requesting the EPA's objection to the 
issuance of operating permits on the basis of alleged violations of 
laws other than the CAA. The EPA has denied all of those petition 
claims.\12\
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    \11\ The EPA's regulations provide that title V permit issuance 
may be coordinated with the issuance of permits under the CWA and 
RCRA, but that does not mean those other requirements are subject to 
review through title V. 40 CFR 70.1(e), 71.1(d).
    \12\ See, e.g., In The Matter of Gateway Generating Station, 
Order on Petition No. IX-2013-1 at 12-14 (Oct. 15, 2014); In the 
Matter of Monroe Electric Generating Plant, Order on Petition No. 6-
99-2 at 27 (June 11, 1999).
---------------------------------------------------------------------------

    Other federal authorities are sometimes invoked in the context of 
title V permitting (and in particular, title V petitions), including 
presidential executive orders. Because executive orders are not legally 
binding on state permitting authorities and are generally not based on 
the CAA, they do not establish ``applicable requirements'' that states 
must implement through title V permitting. Accordingly, the EPA has 
denied title V petition claims alleging that state permitting 
authorities failed to satisfy executive orders.\13\
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    \13\ See, e.g., In the Matter of AK Steel Dearborn Works, Order 
on Petition No. V-2016-16 at 17-19 (Jan. 15, 2021) (AK Steel Order); 
In the Matter of Orange Recycling and Ethanol Production Facility, 
Pencor-Masada Oxynol, LLC, Order on Petition No. II-2000-07 at 32-33 
(May 2, 2001) (Pencor-Masada I Order). Note that federal executive 
orders may be more directly relevant to EPA-issued title V permits 
under part 71 (as well as other types of EPA-issued permits).
---------------------------------------------------------------------------

    Many state permitting authorities have air quality laws that are 
not derived from the CAA and/or are not included as part of an EPA-
approved state program.\14\ These ``state-only'' requirements are not, 
standing alone, enforceable by the EPA and are not applicable 
requirements for title V purposes. Thus, these requirements do not need 
to be included in title V permits, title V permits do not need to 
assure compliance with these requirements, and these requirements are 
beyond the scope of the EPA's title V oversight tools. For these 
reasons, the EPA has denied numerous title V petition claims alleging 
that title V permits fail to satisfy state-only laws and 
requirements.\15\
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    \14\ This includes requirements that may be designed to 
implement a CAA requirement, but which the EPA has not yet approved 
(including SIPs, state plans under CAA section 111(d), and state 
programs under CAA section 112(l), and part 70 programs).
    \15\ See, e.g., In the Matter of Salt River Project Agricultural 
Improvement & Power District, Agua Fria Generating Station, Order on 
Petition No. IX-2022-4 at 14 (July 28, 2022) (SRP Agua Fria Order); 
In the Matter of Shintech, Inc., Order on Petition at 14 (Sept. 10, 
1997) (Shintech I Order).
---------------------------------------------------------------------------

    State permitting authorities may, at their discretion, include 
requirements based on state-only enforceable laws within title V 
permits, but they are required to designate such permit terms as 
``state-only'' or ``not federally enforceable.'' 40 CFR 70.6(b)(2). 
Again, these requirements are not ``applicable requirements'' for 
purposes of title V permitting. Thus, from the EPA's perspective, 
properly labeled state-only permit terms are not considered part of the 
title V permit; they may be physically present in the document, but 
they are not legally present for purposes of federal enforceability and 
oversight. As such, these permit terms are not subject to the EPA's 
objection authority nor the title V petition process. 40 CFR 
70.6(b)(2). The EPA has denied many title V petition claims challenging 
the content of state-only permit terms.\16\ Note, however, that there 
are some limited situations in which state-only requirements intersect 
with title V requirements.\17\ Additionally, the CAA requires states to 
provide the public with an opportunity to raise concerns with any 
conditions of a title V permit, including state-only conditions, 
through judicial review in state court systems. See 42 U.S.C. 
7661a(b)(6); 40 CFR 70.4(b)(3)(x)-(xii). This opportunity exists in 
parallel to the unique oversight authorities (e.g., the EPA's objection 
authority and public petition opportunity) that extend only to 
federally enforceable requirements of title V permits.
---------------------------------------------------------------------------

    \16\ See, e.g., In the Matter of Harquahala Generating Station 
Project, Order on Petition at 5 (July 2, 2003) (Harquahala Order).
    \17\ For example, the EPA has used and will use title V 
oversight tools to assess whether state laws should be considered 
federally enforceable ``applicable requirements'' with which a title 
V permit must assure compliance. See, e.g., In the Matter of 
Georgia-Pacific Consumer Operations LLC, Crossett Paper Operations, 
Order on Petition Nos. VI-2018-3 & VI-2019-12 at 14-15 (Feb. 22, 
2023). The EPA has also considered whether title V permit terms are 
appropriately designated as federally enforceable requirements or 
state-only requirements. See, e.g., In the Matter of ExxonMobil 
Corp., Baytown Chemical Plant, Order on Petition No. VI-2020-9 at 
24-26 (Mar. 18, 2022) (ExxonMobil Baytown Chemical Order). 
Additionally, the EPA will consider whether state-only requirements 
or permit terms would impair the effectiveness or enforceability of 
applicable requirements or other federally enforceable title V 
permit terms. See, e.g., Harquahala Order at 5. Finally, note that 
any terms of a title V permit that are not designated as ``state 
only'' or ``not federally enforceable'' (or similar) become 
federally enforceable upon permit issuance and are subject to the 
part 70 requirements that govern federally enforceable terms of 
title V permits, including requirements related to monitoring, 
recordkeeping, and reporting. 40 CFR 70.6(b)(1)-(2); see, e.g., In 
the Matter of ExxonMobil Fuels & Lubricant Co., Baton Rouge 
Refinery, Reforming Complex and Utilities Unit, Order on Petition 
Nos. VI-2020-4, VI-2020-6, VI-2021-1, & VI-2021-2 at 16 & 16 n.26 
(Mar. 18, 2022).
---------------------------------------------------------------------------

2. CAA Requirements That Are Not Specifically Identified in 40 CFR 70.2
    The CAA is a large and complex statute, composed of many different 
programs. Not all of these programs are implemented in the same manner 
through title V or establish ``applicable requirements'' for title V 
purposes.
    One notable example is title II of the CAA, which concerns emission 
standards for internal combustion engines in mobile sources and nonroad 
engines. Even if such emission units are located at a stationary 
source, they are not regulated as a stationary source because they are 
excluded from the definition of ``stationary source.'' See 42 U.S.C. 
7602(z).\18\ Thus, title II requirements with which a stationary source 
must comply are not included within the EPA's title V-focused

[[Page 1156]]

regulatory definition of ``applicable requirement.''
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    \18\ Questions sometimes arise regarding whether an internal 
combustion engine used at a stationary source should be considered a 
nonroad engine or a part of the stationary source. See, e.g., 42 
U.S.C. 7550(10); 7602(z); 40 CFR 1068.30. This topic is beyond the 
scope of the current rulemaking.
---------------------------------------------------------------------------

    Other substantive CAA programs relevant to stationary sources are 
similarly not identified in the EPA's regulatory definition of 
``applicable requirement'' for title V purposes because Congress did 
not intend for them to be implemented through the title V program. For 
further information about one example--the ``General Duty Clause'' 
concerning the prevention of accidental releases of hazardous 
substances under CAA section 112(r)(1)--see section V. of this 
preamble. Another example is the Greenhouse Gas Reporting Program in 40 
CFR part 98. That program applies to stationary sources and uses the 
authorities provided in CAA sections 114 and 208 to collect greenhouse 
gas emissions information, but it is not an applicable requirement for 
title V purposes. Similarly, the Air Emissions Reporting Requirements 
program in 40 CFR part 51, subpart A imposes information-gathering 
requirements that are generally not implemented through title V.
    Some CAA provisions are more general in nature and do not impose 
substantive requirements that are incorporated into title V permits. 
For example, title III of the CAA includes general provisions related 
to a number of cross-cutting topics. See 42 U.S.C. 7601-7628. Although 
some of these requirements may directly or indirectly impact title V 
permitting, most provisions within title III are not ``applicable 
requirements'' for title V purposes.\19\
---------------------------------------------------------------------------

    \19\ One notable exception is the Outer Continental Shelf 
permitting requirements under CAA section 328, 42 U.S.C. 7627, which 
are considered applicable requirements for title V purposes. 40 CFR 
70.2, 71.2.
---------------------------------------------------------------------------

3. Requirements That Do Not Apply to Emission Units
    Not all requirements from CAA programs identified in the EPA's 
regulatory definition of ``applicable requirement'' are considered 
applicable requirements for title V purposes. This is because the 
definition only includes such requirements ``as they apply to emission 
units in a part 70 source.'' 40 CFR 70.2, 71.2. Applicable requirements 
generally include the substantive requirements from other provisions of 
the Act that dictate the ongoing operations of emission units at the 
source. After all, as the name of this program suggests, title V 
operating permits are fundamentally designed to specify the conditions 
under which a source's emission units must operate. Further, a key 
purpose of the title V program is to assure that the source complies 
with the requirements to which it is subject. See 42 U.S.C. 7661a(a).
    Therefore, requirements of the CAA that do not directly apply to 
individual emission units at a part 70 source are not ``applicable 
requirements'' for title V purposes. Many of the CAA provisions that do 
not apply to emission units at a title V source could be described as 
programmatic or procedural in nature. For example, CAA requirements 
that specify actions that the EPA must take in order to establish or 
oversee different CAA programs (such as promulgating rules, taking 
action on state rules, and other programmatic oversight activities) are 
not applicable requirements that need to be reflected in a source's 
title V permit.\20\ Similarly, the CAA requires state air agencies to 
undertake various activities related to the establishment and 
implementation of different CAA programs, including attainment planning 
requirements (e.g., in developing SIPs).\21\ State permitting 
authorities are also subject to various requirements (mostly 
procedural) related to the issuance of non-title V permits (e.g., NSR 
permits).\22\ In general, the EPA does not believe that Congress 
intended the title V program to serve as a vehicle to catch or correct 
programmatic or procedural problems associated with the establishment 
of applicable requirements in other CAA programs.\23\ Instead, again, 
the title V program was designed to ensure that regulated sources 
comply with all the substantive air pollution control requirements to 
which they are subject. Thus, to the extent these requirements only 
directly regulate EPA or state actions--and do not result in 
requirements directly applicable to emission units at a title V 
source--they are not applicable requirements for title V purposes.
---------------------------------------------------------------------------

    \20\ See, e.g., In the Matter of Hu Honua Bioenergy Facility, 
Order on Petition No. IX-2011-1 at 6-7 (Feb. 7, 2014) (Hu Honua I 
Order).
    \21\ See, e.g., In the Matter of Exxon Chemical Americas, Baton 
Rouge Polyolefins Plant, Order on Petition No. 6-00-1 at 10-11 (Apr. 
12, 2000).
    \22\ See, e.g., In the Matter of Century Aluminum of South 
Carolina, Inc., Order on Petition No. IV-2023-09 at 19-20 (November 
2, 2023) (Century Aluminum Order). However, note that there are 
limited circumstances under which procedural issues associated with 
other CAA programs (namely, the issuance of NSR permits) may be 
implicated in title V. See section IV.B.5.a. of this preamble for 
further discussion.
    \23\ By contrast, issues related to the procedures used to issue 
a title V permit are of central relevance to the title V program, 
and the unique title V oversight tools available to the EPA and the 
public generally may be used to address those deficiencies. See 
section III.D.4. of this preamble for more information on such part 
70 requirements.
---------------------------------------------------------------------------

    Also, the CAA contains many cross-cutting general provisions (e.g., 
in title III of the CAA) that are not considered applicable 
requirements because they do not directly apply to emission units at 
part 70 sources.\24\ The same is true for various cross-cutting 
regulatory provisions. To the extent these provisions are relevant to 
the implementation or enforcement of the title V program, they are 
independently enforceable and do not need to be explicitly specified in 
a title V permit. One example that often arises in the context of title 
V petitions is that of ``credible evidence.'' EPA, states, and citizens 
can use any credible evidence to prove compliance and non-compliance 
with the CAA, including compliance and non-compliance with title V 
permits. See 42 U.S.C. 7413(a), 7604(a)(1), 7604(f)(4); 62 FR 8314 
(Feb. 24, 1997). The EPA has repeatedly held that title V permits need 
not include language affirmatively restating the existence of this 
principle.\25\
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    \24\ These general provisions are not considered applicable 
requirements for two reasons: (i) they are not specified within the 
regulatory definition's list of 13 types of CAA requirements (as 
discussed in the preceding subsection of the preamble), and (ii) 
they do not apply to emission units at a source (as discussed in 
this subsection).
    \25\ See, e.g., In the Matter of Plains Marketing LP and Four 
Other Facilities, Order on Petition Nos. IV-2023-1 & IV-2023-3 at 50 
(Sept. 18, 2023). Note that EPA has also indicated that title V 
permits cannot be drafted in such a way that would preclude the use 
of all credible evidence in enforcement proceedings. See, e.g., In 
the Matter of Valero Refining-Texas, L.P., Valero Houston Refinery, 
Order on Petition No. VI-2021-8 at 70 (June 30, 2022) (Valero 
Houston Order).
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4. ``Part 70 Requirements''
    As previously stated, the definition of ``applicable requirement'' 
in 40 CFR 70.2 and 71.2, and the manner in which this phrase is used 
throughout the EPA's title V regulations, focus on CAA requirements 
arising from other CAA programs beyond title V. By contrast, the 
requirements within title V and the EPA's part 70 and 71 regulations 
are not technically considered ``applicable requirements.'' \26\ 
Instead, the EPA generally refers to these as ``part 70 requirements.'' 
\27\
---------------------------------------------------------------------------

    \26\ Part 70 requirements do not meet the regulatory definition 
of ``applicable requirement'' because they are not included within 
the definition's list of 13 types of CAA requirements. Moreover, 
some part 70 requirements (e.g., procedural requirements) do not 
directly apply to emission units.
    \27\ The phrase ``part 70 requirements'' is based on various 
portions of the part 70 regulations that refer to the ``requirements 
of this part'' as a distinct, and additional, source of requirements 
from ``applicable requirements'' based on other CAA programs. See 40 
CFR 70.4(b)(3)(v), 70.6(a)(9)(iii), 70.6(a)(10)(iii), 
70.7(a)(1)(iv), 70.8(b)(2), 70.8(c)(1), 70.12(a)(2). This concept is 
also relevant with respect to EPA-issued permits under 40 CFR part 
71, where a similar distinction exists between ``applicable 
requirements'' derived from other CAA programs and the requirements 
of part 71 that are derived from title V of the Act. See, e.g., 40 
CFR 71.10(g)(1). However, given that this issue most often arises in 
the context of state-issued part 70 permits, this preamble uses the 
term ``part 70 requirements'' to refer to requirements derived from 
title V.

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[[Page 1157]]

    This distinction is meaningful because the regulatory use of the 
term ``applicable requirement'' is closely tied to the core purpose of 
title V: to consolidate and assure compliance with the substantive 
requirements from other CAA programs, but not to create or modify such 
requirements. Thus, as previously described, the title V permitting 
process and title V oversight tools are generally not used to 
reevaluate the content of ``applicable requirements'' from other CAA 
programs.
    By contrast, many ``part 70 requirements'' are directly implemented 
through title V permitting, as these requirements relate to the content 
of title V permits and the process used to issue them. For example, the 
requirements that dictate the content of title V permits are part 70 
requirements (not applicable requirements). These include, for example, 
the requirement that title V permits include and assure compliance with 
``applicable requirements'' established elsewhere, and the authority to 
impose, as necessary, additional monitoring and other compliance 
assurance provisions. See, e.g., 40 CFR 70.6(a), (c). Further, the 
requirements related to public participation in title V permits, the 
availability of information, and related procedural requirements are 
all part 70 requirements (not applicable requirements). See 40 CFR 
70.7(h). Title V and the part 70 regulations contain other unique title 
V authorities--such as the ``permit shield'' under CAA section 504(f) 
and 40 CFR 70.6(f).\28\ The important distinction between these part 70 
requirements and applicable requirements from other CAA programs is 
that part 70 requirements are properly subject to the additional 
oversight mechanisms unique to title V (including the EPA objection 
authority, public petition opportunity, and other programmatic 
oversight authorities).
---------------------------------------------------------------------------

    \28\ The permit shield is discussed in more detail in section 
IV.C.3. of this preamble to the extent it impacts NSR permitting 
decisions.
---------------------------------------------------------------------------

E. Self-Implementing Applicable Requirements (e.g., NSPS, NESHAP)

    Turning to CAA provisions that are considered ``applicable 
requirements,'' not all applicable requirements are treated the same in 
title V permits. This subsection addresses applicable requirements with 
the most straightforward title V implementation, often referred to as 
``self-implementing'' or ``self-executing'' requirements. The hallmark 
of a self-implementing requirement is that the underlying statutory or 
regulatory provision defines the requirements applicable to a given 
emission unit with enough specificity for these requirements to be 
independently and immediately enforceable, even before going through 
the permitting process.\29\ In other words, these applicable 
requirements require no further case-specific decisionmaking (e.g., 
through a permitting process) in order to define the precise 
requirements to which a source is subject. Such requirements consist of 
prescribed emission standards, operational limitations, testing, 
monitoring, recordkeeping, reporting, and other compliance assurance 
requirements. These requirements are explicitly identified within an 
EPA regulation (e.g., NSPS under CAA section 111, NESHAP under CAA 
section 112, Federal Plan under CAA section 111(d), similar rules under 
CAA section 129, or a FIP under CAA section 110(c)) or an EPA-approved 
state regulation (e.g., SIP under CAA section 110(a) or a State Plan 
under CAA sections 111(d) or 129).
---------------------------------------------------------------------------

    \29\ This is in contrast with some other programs the EPA 
administers, such as certain requirements under the CWA. Some new 
requirements under the CWA only become effective once they are 
incorporated into a source's National Pollutant Discharge 
Elimination System (NPDES) permit. See, e.g., Texas Oil & Gas Ass'n 
et al v. US EPA, 161 F.3d 923, 928 (5th Cir. 1998) (``Despite their 
central role in the framework of the CWA, [Effluent Limitation 
Guidelines, or ELGs] are not self-executing. They cannot be enforced 
against individual dischargers, and individual dischargers are under 
no legal obligations to obey limits set by ELGs. Rather, ELGs 
achieve their bite only after they have been incorporated into NPDES 
permits.'' (citing American Paper Inst. v. EPA, 996 F.2d 346, 350 
(D.C. Cir. 1993); American Petroleum Inst., 661 F.2d 340, 344 (5th 
Cir. 1981)).
---------------------------------------------------------------------------

    Such self-implementing applicable requirements should generally be 
included in, or incorporated into, a title V permit without further 
review.\30\ It would not be appropriate, for example, to use the title 
V permitting process to reevaluate the stringency of a Maximum 
Achievable Control Technology (MACT) standard promulgated by the EPA 
through rulemaking under CAA section 112.\31\ The same is true with 
respect to the content of self-implementing standards contained in 
SIPs, as discussed further in section III.G. of this preamble.
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    \30\ The manner in which such requirements may be included in or 
incorporated by reference into, a title V permit is beyond the scope 
of this rulemaking. For more information about incorporation by 
reference, see, for example, ExxonMobil Baytown Chemical Order at 
16-19 and White Paper Number 2 for Improved Implementation of the 
Part 70 Operating Permits Program, 36-41 (Mar. 5, 1996).
    \31\ See, e.g., In the Matter of Borden Chemical, Inc. 
Formaldehyde Plant, Order on Petition No. 6-01-1 at 48-49 (Dec. 22, 
2000).
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    Central to the concept of ``applicable requirements'' is the fact 
that each applicable requirement is established through its own 
dedicated process, which includes the ability for the public to 
participate in the development of and, if necessary, challenge the 
substantive sufficiency of the requirement. For example, the EPA 
regulations referenced in preceding paragraphs are generally undertaken 
under CAA section 307, which establishes various procedural and public 
participation-related requirements, as well as the opportunity for 
judicial review of final regulations. See 42 U.S.C. 7607(b)-(d). The 
promulgation and approval of SIPs often involves two such rulemakings--
one at the state level and one at the federal level. Thus, the fact 
that self-implementing applicable requirements are not substantively 
re-evaluated through title V does not mean the public is without 
recourse; it simply means that the title V permitting process was not 
designed to collaterally attack or reopen these previously-finalized 
applicable requirements.
    Given title V's key role in consolidating applicable requirements, 
questions often arise during the permitting process as to which CAA 
requirements are applicable to a given source or emission unit. To the 
extent that applicability is clearly established within the applicable 
requirement itself (e.g., a source-specific SIP provision) or some 
other type of final agency action (e.g., a formal EPA applicability 
determination under CAA sections 111, 112, or 129), applicability would 
not be subject to further scrutiny through title V.\32\ However, there 
are cases where the applicability of a requirement--including a 
requirement that could otherwise be described as ``self-
implementing''--has not been conclusively established prior to title V 
permit issuance. In these cases, the title V permitting process can and 
should be used to determine which requirements apply to the source, so 
that the title V permit can include and assure compliance with those 
requirements. For example, determining which NSPS

[[Page 1158]]

or NESHAP subpart is applicable to a source may require further site-
specific factual analysis through the permitting process. Additionally, 
within a given NSPS or NESHAP rule, there may be multiple different 
sets of requirements that apply differently to emission units with 
different characteristics. In these situations, it may be necessary to 
use the title V permitting process to decide (and identify) which 
specific requirements within a NSPS or NESHAP rule apply to each 
emission unit at a source. In these cases, the title V permitting 
process can and should be used to determine which requirements apply to 
the source, so that the title V permit can include and assure 
compliance with those requirements.
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    \32\ The EPA has established formal and informal processes for 
EPA to resolve questions regarding the applicability of NSPS, 
NESHAP, and section 111(d) and section 129 rules, called the 
``applicability determination'' process. See 40 CFR 60.5, 61.06, 
62.02(b)(2); EPA Process Manual for Responding to Requests 
Concerning Applicability and Compliance Requirements of Certain 
Clean Air Act Stationary Source Programs, Appx B (July 2020), 
available at https://www.epa.gov/sites/default/files/2020-07/documents/111-112-129_process_manual.pdf.
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    Finally, even for self-implementing applicable requirements, the 
title V permitting process may be used to determine whether additional 
compliance assurance provisions (e.g., monitoring) are necessary. See 
42 U.S.C. 7661c(c); 40 CFR 70.6(c)(1); Sierra Club v. EPA, 536 F.3d at 
680. Further guidance on determining the sufficiency of monitoring and 
other compliance assurance provisions is beyond the scope of this 
rulemaking.

F. Requirements Defined Through Title V Permitting

    Although title V generally does not impose substantive new 
requirements, title V permits sometimes serve as the vehicle to further 
define applicable requirements from other CAA programs. This most often 
occurs when the underlying applicable requirement provides general 
direction and requires further source-specific analysis to define the 
precise requirements that apply to a given source or emission unit. 
Some underlying applicable requirements expressly identify title V 
permits as the vehicle for this analysis; others may be more open-ended 
about the vehicle used to define the applicable requirement; and still 
others may specify a different vehicle for establishing these 
requirements (e.g., NSR permits, discussed further in section IV. of 
this preamble).
    Unlike applicable requirements that are established in full 
elsewhere, where the details of an applicable requirement are defined 
for the first time through the title V permitting process, questions 
about the content of such an applicable requirement are subject to 
title V's unique oversight tools, including the EPA's objection 
authority and the public petition opportunity.
    For example, CAA section 112(g) requires the development of case-
by-case Maximum Achievable Control Technology (MACT) limits prior to 
certain construction activities at a major source of HAPs where there 
is no NESHAP under CAA section 112(d).\33\ These limits can--and in 
some cases, must--be established through the title V process. In such 
cases where a title V permit is used to establish a case-by-case MACT 
limit, questions about both the applicability and the content of such a 
limit (i.e., whether the limit properly reflects MACT) are subject to 
the unique oversight tools of title V.\34\
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    \33\ Under CAA section 112(g)(2), if the EPA has not established 
a MACT standard for a source category, the EPA or the state must 
establish a case-by-case MACT emission limit prior to certain 
construction activities at a major source of HAPs. Similarly, under 
CAA section 112(j)(2), if the EPA has not established a MACT 
standard for a source category, a new or existing major source's 
title V operating permit must include a case-by-case MACT limit. See 
also 40 CFR 63.40-44 (implementing regulations for 112(g)), 63.50-56 
(implementing regulations for 112(j)).
    \34\ See 61 FR 68384, 68393, 68395 (Dec. 27, 1996) (``Where EPA 
determines that the MACT determination made by the permitting 
authority fails to meet any of the requirements of Sec.  63.43 [and] 
where the MACT determination is made part of a source's part 70 
permit, EPA may veto issuance of the permit in accordance with the 
provisions of 40 CFR 70.8(c).''); id. at 68395 (``If, during the 
EPA's review of the section 112(g) determination, it becomes 
apparent that the determination is not in compliance with the Act, 
then EPA must object to the issuance or revision of that permit.''); 
In the Matter of American Electric Power Service Corp., Southwest 
Electric Power Co., John W. Turk Plant, Order on Petition No. VI-
2008-01 at 15-16 (Dec. 15, 2009); In the Matter of Shintech Inc., 
PVC Plant, Order on Petition No. 6-03-1 at 16-21 (July 3, 2003).
---------------------------------------------------------------------------

    Other requirements of CAA section 112 NESHAP and section 111 NSPS 
regulations may require further definition through, for example, 
various types of site-specific operational plans. These plans are 
generally developed outside of the title V permitting process, but to 
the extent they are necessary to impose or assure compliance with an 
applicable requirement of the NSPS or NESHAP, they must be included or 
incorporated into title V permits.\35\ The title V permitting process 
may also be used for similar case-by-case decisions based on underlying 
SIP provisions, as discussed further in the following subsection of 
this preamble.
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    \35\ Other requirements of CAA section 111 NSPS and section 112 
NESHAP regulations may require further definition through various 
types of site-specific operational plans. These plans are generally 
developed outside of the title V permitting process, but to the 
extent they are necessary to impose or assure compliance with an 
applicable requirement of the NSPS or NESHAP, they must be included 
or incorporated into title V permits. See, e.g., Valero Houston 
Order at 25-26.
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    In these situations, it is not the title V permit that establishes 
the applicable requirement itself. The applicable requirement is still 
based on the underlying statutory or regulatory provision, but the 
title V permit defines the precise details of the applicable 
requirement. Essentially, the title V permitting process is used to 
develop the specific ``enforceable emission limitations and standards . 
. . and such other conditions as are necessary to assure compliance 
with the [more general underlying] applicable requirements. . . .'' 42 
U.S.C. 7661c(a). Absent an underlying CAA-based authority, title V 
permits should generally not be used to impose new substantive 
requirements. 40 CFR 70.1(b).

G. Applicable Requirements Related to the NAAQS and SIPs

    CAA requirements associated with the NAAQS and SIPs reflect the 
full spectrum of issues discussed in the preceding subsections of this 
preamble. Some are not applicable requirements for title V purposes; 
others are self-implementing applicable requirements that need no 
further review during title V; still others may be defined through 
title V permitting; and many are established in the NSR permitting 
process. Perhaps due to the variability and complexity of issues 
related to the NAAQS and SIPs, the EPA has received numerous title V 
petitions raising concerns that the EPA was not able to address through 
that mechanism. The EPA hopes that the following discussion will help 
reduce confusion about the issues that are--and are not--redressable 
through title V oversight tools.\36\
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    \36\ As with essentially all other portions of this preamble, 
the explanations in this section reflect existing policies, as 
expressed in prior rule preambles, guidance documents, and numerous 
title V petition orders.
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    Beginning with the NAAQS, it is well-established that the NAAQS are 
not themselves applicable requirements because they do not apply 
directly to sources.\37\ That is, the promulgation of a NAAQS does not, 
in and of itself, automatically result in emission limits or other 
control measures applicable to a source. Instead, the NAAQS create an 
obligation on states to develop SIPs (and on EPA to promulgate FIPs, as 
necessary) that contain requirements necessary to achieve and maintain 
the NAAQS. 42 U.S.C. 7410(a)(1), (c)(1).

[[Page 1159]]

The specific measures contained in each state's EPA-approved SIP to 
achieve the NAAQS are the applicable requirements with which sources 
must comply. 40 CFR 70.2. For purposes of title V permitting, this 
means that a state does not have any general obligation to establish 
emission limitations or other standards within a title V permit in 
order to protect the NAAQS. Whether such requirements are necessary is 
largely dependent on the relevant terms of the SIP.
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    \37\ 40 CFR 70.2 (defining ``applicable requirement'' to include 
the NAAQS ``but only as it would apply to temporary sources''); 57 
FR at 32276 (``Under the Act, NAAQS implementation is a requirement 
imposed on States in the SIP; it is not imposed directly on a 
source. In its final rule, EPA clarifies that the NAAQS and the 
increment and visibility requirements under part C of title I of the 
Act are applicable requirements for temporary sources only.''); 56 
FR at 21732-33 (``The EPA does not interpret compliance with the 
NAAQS to be an `applicable requirement' of the Act.'').
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    Some applicable requirements in SIPs could be described as ``self-
implementing'' in a manner similar to the EPA's NSPS and NESHAP 
standards discussed in section III.E. of this preamble. For example, a 
source-specific SIP provision may impose a specific numerical emission 
limit or operational limit on a specific source. Or, a SIP provision, 
``permit by rule,'' or ``general permit'' within the SIP may impose 
similar requirements on a category of sources or emission units. Such 
requirements should be included in the source's title V permit without 
further review (except, of course, to ensure that the permit contains 
sufficient monitoring and other compliance assurance conditions). 
Nonetheless, the EPA has received many title V petitions challenging 
such requirements contained in an EPA-approved SIP. Some petitions have 
directly challenged the SIP provision itself, asserting that the SIP 
requirement was incorrectly established or failed to satisfy certain 
legal requirements governing SIPs. More often, petitions have 
challenged permit terms that repeat verbatim an approved SIP provision; 
such claims effectively challenge the SIP itself. As the EPA has 
explained, if an alleged problem lies with the content of the SIP, the 
proper remedy would be a ``SIP Call'' under CAA section 110(k), not a 
title V petition. Until the EPA approves a corrective SIP revision or 
issues a FIP, the SIP provision remains an ``applicable requirement'' 
that should be incorporated unchanged into the title V permit. The EPA 
has consistently denied title V petition claims on this basis.\38\
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    \38\ See, e.g., In the Matter of Piedmont Green Power, Order on 
Petition Number IV-2015-2 at 28-29 (Dec. 13, 2016) (Piedmont Green 
Power Order); In the Matter of Pacificorp's Jim Bridger and Naughton 
Electric Utility Steam Generating Plants, Order on Petition No. 
VIII-00-1 at 23-24 (Nov. 16, 2000).
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    Other SIP requirements are less specific and must be further 
defined in subsequent proceedings (generally before the state) that 
involve a fact-specific analysis of the relevant affected sources and 
emission units.\39\ Depending on the nature of the SIP provisions at 
issue, this analysis may involve, for example, various methods of 
qualitatively or quantitatively assessing a source's impact on the 
NAAQS (including, but not limited to, ambient air dispersion modeling). 
This analysis may also result in case-by-case emission limits designed 
to protect the NAAQS. Determining the proper venue for satisfying or 
defining these general SIP requirements depends on the specific 
language contained in the SIP, as discussed in the following 
paragraphs.
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    \39\ See, e.g., 56 FR at 21757 (``Where SIP requirements are 
clear, the part 70 permit must adopt these limitations and 
reestablish them as permit conditions that implement the SIP. Where 
the SIP requirements are ambiguous or absent, the permit could 
provide a way of resolving questions as to how the SIP applies and 
is enforced.'').
---------------------------------------------------------------------------

    In general, most SIP provisions provide that case-by-case decisions 
necessary to fulfill general SIP requirements will proceed either 
through subsequent rulemaking actions \40\ or through the NSR 
permitting process (as discussed in section IV. of this preamble). Once 
established, the more specific requirements of the SIP, as defined 
through those processes, are generally not subject to further review 
during the title V permitting process.
---------------------------------------------------------------------------

    \40\ See, e.g., In the Matter of TransAlta Centralia Generation, 
LLC, Order on Petition at 11-12 (Apr. 28, 2011).
---------------------------------------------------------------------------

    However, some SIP requirements may be defined for the first time in 
a title V permit, in which case the contents of these requirements are 
reviewable using the unique title V oversight tools. Again, whether a 
SIP-based requirement is reviewable through the title V process depends 
on the specific SIP provision at issue. For example, the EPA has 
reviewed (and granted) title V petitions requesting analysis of a 
source's impacts on the NAAQS or case-specific emission limits designed 
to protect the NAAQS in situations where the SIP provisions at issue 
specifically suggested that such requirements would be implemented 
through title V.\41\ In such cases, the EPA has generally provided the 
permitting authority the opportunity to interpret the relevant SIP 
provisions and to explain the scope, timing, and applicability of these 
provisions as they relate to the source in question.
---------------------------------------------------------------------------

    \41\ See In the Matter of In the Matter of Alabama Power Co., 
Barry Generating Plant, Order on Petition No. IV-2021-5 at 11-14 
(June 14, 2022) (granting a claim related to a SIP provision that 
required owner/operators of a certain type of source to 
``[d]emonstrate, to the satisfaction of the [state], that sulfur 
oxides emitted, either alone or in contribution to other sources, 
will not interfere with attainment and maintenance of any primary or 
secondary [NAAQS]''); In the Matter of Duke Energy, LLC, Asheville 
Steam Electric Plant, Order on Petition No. IV-2016-06 at 11-17 
(June 30, 2017) (granting claim related to a SIP requirement that 
``the permit shall contain a condition requiring'' controls more 
stringent than the applicable emission standards when necessary to 
prevent a violation of the NAAQS--a provision the state had 
previously relied upon to establish limits in individual permits); 
In the Matter of Duke Energy, LLC, Roxboro Steam Electric Plant, 
Order on Petition No. IV-2016-07 at 10-15 (June 30, 2017) (same as 
Duke Asheville); In the Matter of Public Service of New Hampshire, 
Schiller Station, Order on Petition No. VI2014-04 at 8-13 (July 28, 
2015) (granting claim related to a SIP requirement to ``apply 
special emission limits to the stationary sources on a case-by-case 
basis to insure [sic] that their air quality impacts'' do not 
interfere with NAAQS attainment in adjacent states).
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    The EPA has also addressed other, more general SIP provisions that 
do not explicitly require any specific action during the title V 
process. These provisions often take the form of broad, general 
prohibitions on air pollution, and these SIP provisions are not always 
directly tied to the NAAQS or any specific federal requirements. The 
EPA has explained that states have discretion under these general SIP 
provisions to determine that it is not necessary to impose source-
specific limits through title V permits.\42\ However, this does not 
prevent states from using title V to address such general 
requirements.\43\
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    \42\ See In the Matter of EME Homer City Generation LP and First 
Energy Generation Corp., Order on Petition Nos. III2012-06, III-
2012-07, and III-2013-02 at 15-16 (July 30, 2014) (SIP provision 
stated ``No person may permit air pollution as that term is defined 
in the act''); In the Matter of TransAlta Centralia Generation, LLC, 
Order on Petition at 7 (April 28, 2011) (SIP provision prohibited 
``emissions detrimental to persons or property''); In the Matter of 
Hercules, Inc., Order on Petition at 8 (Nov. 10, 2004) (SIP 
provision prohibited emissions that would cause injury or 
unreasonably interfere with enjoyment of life or use of property).
    \43\ See, e.g., In the Matter of Oxbow Calcining LLC, Order on 
Petition No. VI-2020-11 at 10-12 (June 14, 2022) (addressing a 
situation where a state permitting authority took enforcement action 
against a source that allegedly caused a violation of a NAAQS, on 
the basis that this alleged violation also violated permit terms 
reflecting a general SIP provision prohibiting air pollution).
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    Although uncommon, some SIP provisions expressly identify title V 
permits as a vehicle for establishing or modifying SIP-based limits. 
For example, some SIP provisions based on the EPA's Plantwide 
Applicability Limit (PAL) rules expressly identify title V renewal 
permits as a potential vehicle for adjusting a PAL.\44\ Where the title 
V process is specifically identified in a SIP as a means of 
establishing or defining an applicable requirement of the SIP, 
questions related to these requirements maybe properly raised during 
the title V permitting process.
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    \44\ See, e.g., 51.166(w)(10)(v); ExxonMobil Baytown Chemical 
Order 9 at 13-14.

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[[Page 1160]]

IV. Interface Between NSR and Title V Permitting

    Since the title V program was created in the early 1990s, the EPA, 
state permitting authorities, and other interested stakeholders have 
grappled with questions related to the intersection of the title I 
(NSR) \45\ preconstruction permitting programs and the title V 
operating permit program. Among other issues, one has persisted: in 
what situations, and to what extent, should the unique title V 
oversight tools (e.g., the EPA's objection authority and the public 
petition opportunity) be used to address alleged deficiencies related 
to title I permitting decisions? This issue implicates various 
questions about the relationship between title V permits and applicable 
requirements established in other CAA programs. For example, when is an 
applicable requirement considered established, such that it should be 
incorporated into a title V permit without further substantive review? 
Should applicable requirements established under NSR permitting 
programs be treated the same as applicable requirements established 
under other CAA programs? The EPA's answer to these questions has 
changed over time, and two federal circuit courts have reached 
differing conclusions on the matter, as discussed in section IV.A.3. of 
this preamble.
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    \45\ For purposes of this preamble, the terms ``title I permit'' 
and ``NSR permit'' are used interchangeably to describe a 
preconstruction permit issued to satisfy the NSR-related 
requirements of title I of the Clean Air Act.
---------------------------------------------------------------------------

    This action proposes to codify the reasonable approach that the EPA 
has implemented on a case-by-case basis since 2017, as further 
described and justified in sections IV.A.3., IV.B., and IV.E. of this 
preamble. In short, provided a source obtains an NSR permit under EPA-
approved (or EPA-promulgated) title I rules, with public notice and the 
opportunity for comment and judicial review, that NSR permit 
establishes and defines the relevant NSR-related applicable 
requirements of the SIP (or FIP) for purposes of title V. As with 
applicable requirements established under other CAA authorities (e.g., 
NSPS, NESHAP), the EPA would not revisit those NSR decisions through 
the title V process.
    This approach creates an incentive for permitting authorities to 
provide opportunities for meaningful public involvement through the 
most appropriate venue--the NSR permitting process. However, to the 
extent that the public is deprived of the opportunity to participate in 
the NSR permitting process, the title V process will serve as a 
backstop to ensure that each title V permit contains all applicable 
requirements. In other words, even under the EPA's current (and 
proposed) framework, there are certain situations in which the EPA 
would review substantive NSR issues through the title V permitting 
process, as explained in more detail in section IV.B.5. of this 
preamble.
    The EPA is also soliciting comment on alternative approaches, 
presented in section IV.F. of this preamble, that would involve using 
title V to review NSR decisions in more situations.
    The proposed regulatory changes related to NSR permitting are 
distinct and severable from the proposed change related to the general 
duty clause under CAA section 112(r)(1), discussed in section V. of 
this preamble.

A. Background: Historical and Current EPA Positions

1. NSR Programs (1977-Present)
    The title I (NSR) preconstruction permitting program was 
established before the title V operating permits program. The NSR 
program is based on the 1977 Amendments to the CAA. The overall NSR 
program is comprised of three sub-programs, as discussed later.
    The NSR program was designed to protect public health and welfare 
from the effects of air pollution and to preserve and/or improve air 
quality throughout the nation. See 42 U.S.C. 7470(1), (2), (4). The NSR 
program requires certain stationary sources of air pollution to obtain 
air pollution permits prior to beginning construction. Construction of 
new sources and the modification of certain sources with emissions 
above statutory and/or regulatory thresholds are subject to ``major 
source'' NSR requirements. New sources and modifications below the 
relevant emissions thresholds may be subject to minor NSR requirements 
or excluded from NSR altogether.
    The major NSR program includes two distinct programs that each have 
unique requirements for new or modified sources. The applicability of 
these two programs depends on whether the area where the source is 
located is exceeding the NAAQS for one or more pollutants. The PSD 
program, based on requirements in part C of title I of the CAA, applies 
to pollutants for which the area is not exceeding the NAAQS (areas 
designated as attainment or unclassifiable) and to regulated NSR 
pollutants for which there are no NAAQS. 42 U.S.C. 7470-7479. The 
Nonattainment NSR (NNSR) program, based on part D of title I of the 
CAA, applies to pollutants for which the area is not meeting the NAAQS 
(areas designated as nonattainment). 42 U.S.C. 7501-7515.
    To implement the CAA requirements for these programs, most states 
have EPA-approved SIPs containing PSD and NNSR preconstruction 
permitting programs that meet the minimum requirements reflected in the 
EPA's major NSR program regulations at 40 CFR 51.166 and 51.165. Upon 
EPA approval of a SIP, the state or local air agency becomes the 
permitting authority for major NSR permits for sources within its 
boundaries and issues permits under state law. Currently, state and 
local air agencies issue the vast majority of major NSR permits each 
year. When a state or local air agency does not have an approved NSR 
program, federal regulations (40 CFR 52.21, through incorporation into 
a FIP) apply and either the EPA issues the major NSR permits or a state 
or local air agency issues the major NSR permits on behalf of the EPA 
by way of a delegation agreement. For sources located in Indian 
Country, 18 U.S.C. 1151, the EPA is the permitting authority for major 
NSR.
    The permitting program for construction of new and modified non-
major sources and minor modifications to major sources is known as the 
minor NSR program. In addition to the specific major NSR requirements 
in CAA sections 165 and 173, CAA section 110(a)(2)(C) requires states 
to develop a program to regulate the construction and modification of 
any stationary source ``as necessary to assure that [NAAQS] are 
achieved.'' 42 U.S.C. 7410(a)(2)(C). The CAA and the EPA's regulations 
are less prescriptive regarding minimum requirements for minor NSR, so 
air agencies generally have more flexibility in designing minor NSR 
programs in their EPA-approved SIPs. See 40 CFR 51.160-51.164. Minor 
NSR permits are almost exclusively issued by state and local air 
agencies, although the EPA issues minor NSR permits in many areas of 
Indian Country. See 40 CFR 49.151-49.165.
    The applicability of the PSD, NNSR, and/or minor NSR programs to a 
stationary source must be determined in advance of construction and is 
a pollutant-specific determination. Thus, a stationary source may be 
subject to the PSD program for certain pollutants, NNSR for some 
pollutants, and minor NSR for others.
2. Original Title V Approach to NSR (1990-1997)

[[Page 1161]]

    As noted previously, the title V program was established in the 
1990 CAA Amendments. The legislative history articulates Congress's 
intent that, notwithstanding the enactment of title V, NSR permits 
would continue to be issued as they had for over a decade, and that 
title V permits would be used to incorporate those requirements, but 
not to alter or impose additional NSR-related requirements.\46\ The 
text of the CAA implicitly reflects this paradigm. However, the statute 
does not unambiguously prescribe the details of how EPA should approach 
the intersection of the NSR and title V permitting programs.
---------------------------------------------------------------------------

    \46\ See sections IV.E.2. and IV.E.3. of this preamble for 
further discussion of legislative intent.
---------------------------------------------------------------------------

    Thus, when the EPA promulgated the original title V implementing 
regulations in 1991 and 1992, the agency sought to provide clarity 
through multiple regulatory provisions, both of which were introduced 
earlier in this preamble. Again, 40 CFR 70.1(b) states: ``All sources 
subject to these regulations shall have a permit to operate that 
assures compliance by the source with all applicable requirements. 
While title V does not impose substantive new requirements, it does 
require that . . . certain procedural measures be adopted especially 
with respect to compliance.'' Additionally, the EPA created a 
definition of ``applicable requirement'' in 40 CFR 70.2 (and later, 
71.2) that includes, in relevant part: ``all of the following as they 
apply to emissions units in a part 70 source . . . (1) Any standard or 
other requirement provided for in the applicable implementation plan 
approved or promulgated by EPA through rulemaking under title I of the 
Act that implements the relevant requirements of the Act, including any 
revisions to that plan promulgated in part 52 of this chapter; (2) Any 
term or condition of any preconstruction permits issued pursuant to 
regulations approved or promulgated through rulemaking under title I, 
including parts C or D, of the Act.''
    In the preamble of this initial part 70 rulemaking effort, the 
agency spoke directly to the intersection of title V and title I 
permitting. The EPA did not express an intention to use the title V 
permitting process to review the substance of applicable requirements 
established in preconstruction permitting programs under title I of the 
CAA. To the contrary, the EPA stated that ``[a]ny requirements 
established during the preconstruction review process also apply to the 
source for purposes of implementing title V. If the source meets the 
limits in its NSR permit, the title V operating permit would 
incorporate these limits without further review.'' 56 FR 21712, 21738-
39 (May 10, 1991) (emphasis added). The EPA stated clearly that ``[t]he 
intent of title V is not to second-guess the results of any State NSR 
program.'' Id. at 21739 (emphasis added). The EPA stated that 
``[d]ecisions made under the NSR and/or PSD programs (e.g., Best 
Available Control Technology [BACT]) define applicable SIP requirements 
for the title V source and, if they are not otherwise changed, can be 
incorporated without further review into the operating permit for the 
source.'' Id. at 21721 (emphasis added). The preamble to the final rule 
further confirms that ``[d]ecisions made under the NSR and/or PSD 
programs define certain applicable SIP requirements for the title V 
source.'' 57 FR 32250, 32259 (July 21, 1992) (emphasis added).
3. Revised Title V Approach to NSR (1997-2017)
    Once state permitting authorities began issuing title V permits in 
the mid-to-late-1990s, the EPA began receiving public petitions 
challenging those permits. Some of the earliest title V petitions 
included challenges to various types of NSR permitting decisions, 
proving a test to the statements the EPA made when promulgating its 
part 70 rules. The EPA's approach ultimately differed depending on 
whether the underlying NSR permit was issued under the EPA's federal 
PSD rules (40 CFR 52.21, administration of which was delegated to many 
states at the time) or under EPA-approved SIP rules.
    For NSR permits issued under the federal rules, the EPA's petition 
responses from 1997 onward followed the agency's interpretations and 
statements of intent from the early 1990s. In other words, the EPA 
declined to use the title V petition process to review the merits of 
NSR permits issued by the EPA or a delegated agency under a FIP. The 
EPA's reasoning at the time was that appeals of such NSR permits are 
governed by 40 CFR 124.19 and are heard exclusively by the EPA 
Environmental Appeals Board (EAB). Thus, the EPA concluded that it need 
not entertain claims that such permits are deficient when raised in a 
petition to object to a title V permit.\47\ The EPA consistently 
reiterated the same or similar statements in the decades that 
followed.\48\
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    \47\ See In the Matter of Maui Electric Co., Ltd., Order on 
Petition (June 16, 1999) In the Matter of Hawaii Electric Light Co. 
Ltd., Order on Petition (Apr. 3, 1998); In the Matter of Kawaihae 
Cogeneration, Order on Petition (Mar. 10, 1997) (Kawaihae Order).
    \48\ See, e.g., In the Matter of East Kentucky Power 
Cooperative, Inc., Hugh L. Spurlock Generating Station, Order on 
Petition, 5 n.2 (Aug. 30, 2007) (Spurlock I Order); In the Matter of 
Carmeuse Lime and Stone, Order on Petition No. V-2010-1 at 7 n.1 
(Nov. 4, 2011); see also Hu Honua I Order at 3 n.4.
---------------------------------------------------------------------------

    However, starting in 1997, the EPA adopted a different approach to 
title V permitting with respect to NSR permits issued by state 
permitting authorities under EPA-approved SIP rules.\49\ The EPA began 
to interpret section (1) of the definition of ``applicable 
requirement'' to allow the EPA, states, and the public to use the title 
V permitting process to examine the propriety of prior title I 
permitting decisions. For instance, in the 1997 Shintech I Order, the 
EPA stated:
---------------------------------------------------------------------------

    \49\ For example, within the 1997 Kawaihae Order, in which the 
EPA declined to review the merits of a PSD permit issued under 
delegated federal authority, the EPA also announced the following 
(without explanation): ``In contrast, where a state or local 
government has a SIP-approved PSD program and the [EAB] lacks 
jurisdiction to entertain PSD permit appeals, the merits of PSD 
issues are ripe for consideration in a timely veto petition under 
Title V.'' Kawaihae Order at 3.

    Where a state or local government has a SIP-approved PSD 
program, the merits of PSD issues can be ripe for consideration in a 
timely petition to object under Title V. Under 40 CFR 70.1(b), ``all 
sources subject to Title V must have a permit to operate that 
assures compliance by the source with all applicable requirements.'' 
Applicable requirements are defined in section 70.2 to include ``(1) 
any standard or other requirement provided for in the applicable 
implementation plan approved or promulgated by EPA through 
rulemaking under Title I of the [Clean Air] Act . . . .'' The 
[state] defines ``federal applicable requirement,'' in relevant 
part, to include ``any standard or other requirement provided for in 
the Louisiana [SIP] approved or promulgated by EPA through 
rulemaking under title I of the Clean Air Act that implements the 
relevant requirements of the Clean Air Act, including any revisions 
to that plan promulgated in 40 CFR part 52, subpart T.'' Thus, the 
applicable requirements of the Shintech Permits include the 
requirement to obtain a PSD permit that in turn complies with the 
applicable PSD requirements under the Act, EPA regulations, and the 
Louisiana SIP.\50\
---------------------------------------------------------------------------

    \50\ Shintech I Order at 3 n.2 (emphasis added) (citation 
omitted).

    In a 1999 letter responding to requests from permitting 
authorities, the Director of the EPA Office of Air Quality Planning and 
Standards articulated the agency's then-current understanding of the 
interaction of title I and title V.\51\ The letter stated that 
``applicable requirements include the requirement to

[[Page 1162]]

obtain preconstruction permits that comply with applicable 
preconstruction review requirements under the Act, EPA regulations, and 
SIP's.'' The letter expressed the view that section 505(b) of the Act 
provides a form of corrective action in addition to all the other 
enforcement authorities the EPA has under the Act. It stated that 
generally the agency will not object to a title V permit for NSR 
determinations ``made long ago during a prior preconstruction 
permitting process.'' However, regarding recently issued NSR permits, 
the EPA indicated it may object to improper NSR determinations. 
Additionally, the letter said that the EPA could object to a title V 
permit where ``EPA believes that an emission unit has not gone through 
the proper preconstruction permitting process.''
---------------------------------------------------------------------------

    \51\ Letter from John S. Seitz, U.S. EPA, to Robert Hodanbosi, 
STAPPA/ALAPCO (May 20, 1999), available at https://www.epa.gov/sites/production/files/2015-08/documents/hodan7.pdf.
---------------------------------------------------------------------------

    The EPA has also used this reading of the agency's oversight 
authority under title V as part of the justification for approving 
state PSD programs.\52\ In these approvals, the EPA pointed to its 
authority under title I, sections 113 and 167, and stated that title V 
``has added new tools'' for addressing concerns with implementation of 
PSD requirements by allowing for objection to title V permits under 
section 505(b) of the Act. However, the authority to revisit an issued 
preconstruction permit does not appear to have been dispositive to the 
approval of these PSD programs, as EPA could still conduct oversight 
using its title I-based authorities.
---------------------------------------------------------------------------

    \52\ See, e.g., Approval and Promulgation of Implementation 
Plans; Oregon, 68 FR 2891, 2899 (Jan. 22, 2003); see also Approval 
and Promulgation of Implementation Plans; Idaho; Designation of 
Areas for Air Quality Planning Purposes; Idaho, 68 FR 2217, 2221 
(Jan. 16, 2003).
---------------------------------------------------------------------------

    The EPA implicitly or explicitly followed this approach in 
responding to title V petitions between 1997 and 2017. In general, the 
petition claims at issue alleged two types of defects related to NSR: 
First, some claims alleged flaws with the terms of major NSR permits 
issued by a state permitting authority--for example, that BACT limits 
in a PSD permit were not stringent enough. The EPA refers to these 
claims as addressing ``NSR permit content.'' Second, other claims 
alleged that a facility should have received a major NSR permit, 
instead of a minor NSR permit, to authorize the construction of a new 
source or modification. The EPA refers to these claims as addressing 
``NSR applicability.'' For both types of issues, the EPA indicated that 
the agency could review whether preconstruction permitting decisions 
complied with the requirements of the SIP.
    During this time period, the EPA often limited or qualified its use 
of title V authorities to address substantive NSR permitting issues. 
For example, in 1999, the agency stated:

    In determining BACT under a minor NSR program, as in 
implementing other aspects of SIP preconstruction review programs, a 
State exercises considerable discretion. Thus, EPA lacks authority 
to take corrective action merely because the Agency disagrees with a 
State's lawful exercise of discretion in making BACT-related 
determinations. State discretion is bounded, however, by the 
fundamental requirements of administrative law that agency decisions 
not be arbitrary or capricious, be beyond statutory authority, or 
fail to comply with applicable procedures.\53\
---------------------------------------------------------------------------

    \53\ In the Matter of Roosevelt Regional Landfill, Order on 
Petition, 9 (May 4, 1999).

    Applying this framework, the EPA has also drawn an analogy between 
this approach and the standard used by the EAB in reviewing EPA-issued 
PSD permits, described as a ``clearly erroneous'' standard.\54\ More 
recently, the agency summarized this framework as follows:
---------------------------------------------------------------------------

    \54\ See, e.g., Spurlock I Order at 4-5 (Aug. 30, 2007) (``The 
standard of review applied by the EAB in its review of federal PSD 
permits has been explained in numerous orders of the EAB. In short, 
in such appeals, the burden is on a petitioner to demonstrate that 
review is warranted. Ordinarily, a PSD permit will not be reviewed 
by the EAB unless the decision of the permitting authority was based 
on either a clearly erroneous finding of fact or conclusion of law, 
or involves an important matter of policy or exercise of discretion 
that warrants review. Thus, when a response to a petition to object 
to a title V permit requires the Administrator to determine whether 
an approved state's PSD permitting decision was adequately explained 
and meets the requirements of its SIP, EPA believes it is 
appropriate to apply a similar standard of review to that employed 
by the EAB in its review of federal PSD permits. When EPA 
promulgated the regulations governing the EAB's exercise of its 
review authority, the Agency noted that the power of review `should 
be only sparingly exercised.' Similar deference to the permitting 
authority is also justified in the case of a PSD permit issued by a 
state with an approved PSD program, as is the case here.'' (quoting 
45 FR 33290, 33412 (May 19, 1980); citing In re Prairie State 
Generating Company, 13 E.A.D. 1 (EAB 2006); In re Kawaihae 
Cogeneration, 7 E.A.D. 107 (EAB 1997)).

    Where a petitioner's request that the Administrator object to 
the issuance of a title V permit is based in whole, or in part, on a 
permitting authority's alleged failure to comply with the 
requirements of its approved PSD program (as with other allegations 
of inconsistency with the Act), the burden is on the petitioner to 
demonstrate to the Administrator that the permitting decision was 
not in compliance with the requirements of the Act, including the 
requirements of the SIP. As the EPA has explained in describing its 
authority to oversee the implementation of the PSD program in states 
with approved programs, such requirements include that the 
permitting authority: (1) follow the required procedures in the SIP; 
(2) make PSD determinations on reasonable grounds properly supported 
on the record; and (3) describe the determinations in enforceable 
terms. As the permitting authority for [the state's] SIP-approved 
PSD program, [the state agency] has substantial discretion in 
issuing PSD permits. Given this discretion, in reviewing a PSD 
permitting decision in the title V petition context, the EPA 
generally will not substitute its own judgment for that of [the 
state]. Rather, consistent with the decision in Alaska Dep't of 
Envt'l Conservation v. EPA, 540 U.S. 461 (2004), in reviewing a 
petition to object to a title V permit raising concerns regarding a 
state's PSD permitting decision, the EPA generally will look to see 
whether the petitioner has shown that the state did not comply with 
its SIP-approved regulations governing PSD permitting, or whether 
the state's exercise of discretion under such regulations was 
unreasonable or arbitrary.\55\
---------------------------------------------------------------------------

    \55\ In the Matter of Appleton Coated, LLC, Order on Petition 
Nos. V-2013-12 & V-2013-15 at 5 (Oct. 14, 2016) (Appleton Order) 
(citations omitted).

    Between 1997 and 2017, the EPA occasionally articulated further 
restrictions on the use of title V oversight tools to address title I 
permitting issues. For example, on at least three occasions, the EPA 
indicated that ``the Agency generally does not object to the issuance 
of a title V permit due to concerns over BACT or related determinations 
made long ago during a prior preconstruction permitting process.'' \56\
---------------------------------------------------------------------------

    \56\ In the Matter of Georgia Pacific Consumer Products LP 
Plant, Order on Petition No. V-2011-1 at 17 (July 23, 2012); 
Spurlock I Order at 19; see In the Matter of Chevron Products 
Company, Richmond, California Facility, Order on Petition No. IX-
2004-08 at 9 (Mar. 15, 2005). Note that this statement is based on 
the EPA policy articulated in the 1999 letter discussed in footnote 
51.
---------------------------------------------------------------------------

    Additionally, on at least one occasion, the EPA suggested that the 
title V petition demonstration burden may require a final determination 
that NSR applies before the EPA can use the title V process to overturn 
an NSR applicability decision made by the permitting authority. The EPA 
found ``that [the state] has not reached a final determination in this 
permitting context that PSD is an applicable requirement for these 
sources, that the USEPA has not determined otherwise, and that a court 
has not issued a determination in the litigation context. Accordingly, 
there is no requirement under the facts of this case for the permits to 
include either PSD limits or a compliance schedule for the source to 
come into compliance with such limits at this time.'' The EPA concluded 
that ``even if [the state] were to recognize that the potential for 
noncompliance [with title I preconstruction permitting requirements] 
exists, it is not required to pursue inquiries further in the title V 
context,'' but instead could pursue the

[[Page 1163]]

matter through title I enforcement mechanisms.\57\
---------------------------------------------------------------------------

    \57\ In the Matter of Midwest Generation-Joliet Generating 
Station and Will County Generating Stations, Order on Petition No. 
V-2005-2 at 9-10 (June 14, 2007).
---------------------------------------------------------------------------

4. Current Title V Approach to NSR (2017-Present)
    Beginning in 2017, the EPA adopted a more nuanced view that, in the 
EPA's present opinion, better reflects not only the statute and 
Congress's intent, but also the EPA's regulatory definition of 
``applicable requirement'' and the manner in which the title V 
permitting program interacts with other types of CAA requirements. As 
with many of the EPA's views on this topic, the EPA's updated view was 
articulated within Administrator-signed orders responding to title V 
petitions on individual title V permits.
    The first such order was the 2017 PacifiCorp-Hunter I Order.\58\ 
There, the EPA interpreted the CAA and the EPA's title V regulations to 
not require permitting authorities (including the EPA) to examine the 
merits of certain title I permitting decisions in the title V 
permitting context. Specifically, in response to a petition claiming 
that a PSD permit (instead of a minor NSR permit) was required for 
certain changes that occurred at the facility at issue approximately 20 
years prior, the EPA explained:
---------------------------------------------------------------------------

    \58\ In the Matter of PacifiCorp Energy, Hunter Power Plant, 
Order on Petition No. VIII-2016-4 (Oct. 16, 2017).

    In circumstances such as those present here where a 
preconstruction permit has been duly obtained, . . . when a 
permitting authority has made a source-specific permitting decision 
with respect to a particular construction project under title I, 
those decisions ``define certain applicable SIP requirements for the 
title V source'' for purposes of title V permitting. 57 FR 32250, 
32259 (July 21, 1992). The EPA is now interpreting the regulations 
to mean that the issuance of a[n NSR] permit defines the 
applicability of preconstruction requirements under section (1) of 
the definition of ``applicable requirement'' for the approved 
construction activities for the purposes of permitting under title V 
of the Act. . . . These source-specific permitting actions take the 
general preconstruction permitting requirements of the SIP--the 
requirement to obtain a particular type of permit and the 
substantive requirements that must be included in each type of 
permit--and evaluate at the time of the permitting decision whether 
and how to apply them to a proposed construction or 
modification.\59\
---------------------------------------------------------------------------

    \59\ PacifiCorp-Hunter I Order at 10-11. As the EPA explained: 
``This interpretation applies to the facts of this Claim, where a 
permitting authority issued a source-specific title I 
preconstruction permit subject to public notice and comment and for 
which judicial review was available.'' Id. at 11 n.21.

---------------------------------------------------------------------------
Further, the EPA stated:

    Consistent with this reading, permitting agencies and the EPA 
need not reevaluate--in the context of title V permitting, 
oversight, or petition responses--previously issued final 
preconstruction permits, especially those that have already been 
subject to public notice and comment and an opportunity for judicial 
review. Concerns with these final preconstruction permits should 
instead be handled under the authorities found in title I of the 
Act. Where a final preconstruction permit has been issued, whether 
it is a major or minor NSR permit, the terms and conditions of that 
permit should be incorporated as ``applicable requirements'' and the 
permitting authority and the EPA should limit its review to whether 
the title V permit has accurately incorporated those terms and 
conditions and whether the title V permit includes adequate 
monitoring, recordkeeping, and reporting requirements to assure 
compliance with the terms and conditions of the preconstruction 
permit.\60\
---------------------------------------------------------------------------

    \60\ PacifiCorp-Hunter I Order at 19 (citing 42 U.S.C. 7661c(a); 
40 CFR 70.6(a)(3), 70.6(c)(1)).

    Shortly after issuing the PacifiCorp-Hunter I Order, the EPA issued 
the Big River Steel Order,\61\ which applied similar statutory and 
regulatory interpretations to a different set of facts. In Big River 
Steel, the EPA declined to use the title V petition process to review 
whether a PSD permit satisfied the relevant SIP requirements governing 
PSD permit content (including BACT) and modeling related to the NAAQS. 
The EPA did so notwithstanding the fact that the PSD permit at issue, 
and the title V permit being petitioned, were issued at the same time 
and in the same physical permit document. The EPA's rationale was fully 
expressed within the PacifiCorp-Hunter I and Big River Steel Orders. To 
the extent those or similar rationales are relevant to this proposed 
rulemaking, they are presented in section IV.E. of this preamble.
---------------------------------------------------------------------------

    \61\ In the Matter of Big River Steel, LLC, Order on Petition 
No. VI-2013-10 (Oct. 31, 2017).
---------------------------------------------------------------------------

    Since the 2017 PacifiCorp-Hunter I and Big River Steel Orders, the 
EPA has issued approximately 20 other title V petition orders 
addressing similar issues under different fact patterns. Although the 
EPA has consistently followed the overarching interpretations and 
policies articulated in the PacifiCorp-Hunter I and Big River Steel 
Orders, each decision about whether those interpretations were 
applicable depended on the specific facts at issue.\62\ Through these 
case-by-case decisions, the EPA has clarified various aspects of the 
EPA's interpretation of the title V provisions. However, because those 
decisions are spread across many different orders, the EPA understands 
that not all stakeholders--including permitting authorities, 
permittees, and members of the public--may fully understand the EPA's 
views about which types of issues are, or are not, subject to review 
through title V.\63\ This preamble summarizes the most relevant aspects 
of these prior decisions in order to provide additional clarity about 
the EPA's current views.
---------------------------------------------------------------------------

    \62\ See, e.g., PacifiCorp-Hunter I Order at 11 n.21 (``This 
interpretation applies to the facts of this Claim, where a 
permitting authority issued a source-specific title I 
preconstruction permit subject to public notice and comment and for 
which judicial review was available. The EPA is not considering at 
this time whether other circumstances may warrant a different 
approach.''); Sierra Club v. EPA, 926 F.3d 844, 850 (D.C. Cir. 2019) 
(emphasizing the case-specific nature the EPA's decision to apply 
the interpretation at issue in PacifiCorp-Hunter I, as well as the 
case-specific nature of any future EPA decisions to apply or not 
apply the same interpretation to different fact patterns).
    \63\ In recent permitting decisions and title V petitions, the 
EPA has observed that both state permitting authorities and public 
petitioners have often misapplied, misinterpreted, or ignored the 
interpretations and policies expressed in these orders.
---------------------------------------------------------------------------

    In some of these decisions, the EPA concluded that NSR permitting 
actions established the relevant ``applicable requirements'' for title 
V purposes, and the EPA declined to review the substance of those 
applicable requirements in the title V petition context. The EPA 
applied this approach to many different types of issues, including the 
sufficiency of major NSR permit terms,\64\ the sufficiency of minor NSR 
permit terms,\65\ issues related to modeling and the NAAQS,\66\ 
procedures used to issue NSR permits,\67\ whether major NSR is 
applicable,\68\ and other

[[Page 1164]]

NSR-related issues.\69\ Some of these orders involved situations where 
NSR permits were issued well before the title V permits being 
challenged,\70\ while others involved more contemporaneous NSR and 
title V permitting decisions.\71\
---------------------------------------------------------------------------

    \64\ AK Steel Order at 9-13; In the Matter of Riverview Energy 
Corp., Order on Petition No. V-2019-10 at 19-29 (Mar. 26, 2020) 
(Riverview Order); In the Matter of South Louisiana Methanol, LP, 
St. James Methanol Plant, Order on Petition Nos. VI-2016-24 & VI-
2017-014 at 8-10 (May 29, 2018) (South Louisiana Methanol Order); 
Big River Steel Order at 8-20.
    \65\ In the Matter of Delaware City Refining Company, LLC, 
Delaware City Refinery, Order on Petition No. III-2022-10 at 26 
(July 5, 2023) (Delaware City Refinery Order); In the Matter of 
Valero Refining-Texas, L.P., Valero Houston Refinery, Order on 
Petition No. VI-2021-8 at 65-66 (June 30, 2022) (Valero Houston 
Order); In the Matters of Superior Silica Sands & Wisconsin 
Proppants, LLC, Order on Petition Nos. V-2016-18 & V-2017-2 at 14-15 
(Feb. 26, 2018) (SSS/WP Order); In the Matter of Tennessee Valley 
Authority, Gallatin Fossil Plant, Order on Petition Nos. IV-2016-11 
& IV-2017-17 at 19-20 (January 30, 2018) (TVA Gallatin II Order).
    \66\ Riverview Order at 19-21; Big River Steel Order at 8-20.
    \67\ AK Steel Order at 9-13.
    \68\ In the Matter of Waelz Sustainable Products, LLC, Order on 
Petition No. V-2021-10 at 9-16 (Mar. 14, 2023) (Waelz Order); In the 
Matter of Yuhuang Chemical Inc. Methanol Plant, Order on Petition 
Nos. VI-2017-5 & VI-2017-13 at 7-8 (Apr. 2, 2018) (Yuhuang II 
Order); In the Matter of ExxonMobil Corp., Baytown Olefins Plant, 
Order on Petition No. VI-2016-12 at 9-12 (ExxonMobil Baytown Olefins 
Order); PacifiCorp-Hunter I Order at 8-20.
    \69\ In the Matter of ExxonMobil Corp., Baytown Refinery, Order 
on Petition No. VI-2016-14 at 12-13 (ExxonMobil Baytown Refinery 
Order); ExxonMobil Baytown Olefins Order at 9-12 .
    \70\ Delaware City Refinery Order at 16; Valero Houston Order at 
65-66; ExxonMobil Baytown Refinery Order at 12-13, ExxonMobil 
Baytown Olefins Order at 9-12; TVA Gallatin II Order at 19-20.
    \71\ Waelz Order at 13-15; Riverview Order at 24-28; South 
Louisiana Methanol Order at 9; Yuhuang II Order at 7-8; SSS/WP Order 
at 14-15; Big River Steel Order at 8-20.
---------------------------------------------------------------------------

    In other orders with materially different factual underpinnings, 
the EPA determined that it would be appropriate to review certain NSR-
related issues through the title V permitting process. For example, the 
EPA substantively engaged with title V petition claims concerning the 
sufficiency of monitoring established in NSR permits,\72\ requirements 
involving an explicit overlap between NSR and title V,\73\ and other 
NSR issues where no underlying NSR permit was issued \74\ or where the 
underlying NSR permit did not involve public notice and the opportunity 
for comment.\75\
---------------------------------------------------------------------------

    \72\ In the Matter of Gulf Coast Growth Ventures, LLC, Olefins, 
Derivative, & Utilities Plant, Order on Petition No. VI-2021-3 at 
17-19 (May 12, 2022) (Gulf Coast Growth Ventures Order); ExxonMobil 
Baytown Chemical Order at 20-21; South Louisiana Methanol Order at 
10-11; Yuhuang II Order at 8; see also, e.g., Big River Steel Order 
at 17, 17 n.30, 19 n.32, 20; PacifiCorp-Hunter I Order at 16, 17, 
18, 18 n.33, 19.
    \73\ Suncor East Order at 53-54; ExxonMobil Baytown Chemical 
Order at 13-14; In the Matter of Coyote Station Power Plant, Order 
on Petition Nos. VIII-2019-1 & VIII-2020-8 at 12-13 (January 15, 
202) (Coyote Station Order).
    \74\ Suncor East Order at 45-48, 54-55; SRP Agua Fria Order at 
11 n.18; In the Matter of Salt River Project Agricultural 
Improvement & Power District, Desert Basin Generating Station, Order 
on Petition No. IX-2022-3 at 12 n.20 (July 28, 2022) (SRP Desert 
Basin Order); In the Matter of BP Products North America, Inc., 
Whiting Business Unit, Order on Petition No. V-2021-9 at 13 n.24 
(Mar. 4, 2022) (BP Whiting II Order).
    \75\ Suncor East Order at 48; Coyote Station Order at 12.
---------------------------------------------------------------------------

    Two of the EPA's petition orders--the PacifiCorp Hunter I Order and 
the ExxonMobil Baytown Olefins Order--were challenged in different 
federal circuit courts. The U.S. Court of Appeals for the Fifth Circuit 
issued the first ruling, upholding the ExxonMobil Baytown Olefins 
Order. Env't Integrity Project v. EPA, 969 F.3d 529 (5th Cir. 2020). 
There, the court found persuasive the ``EPA's view that Title V 
permitting is not the appropriate vehicle for reexamining the 
substantive validity of underlying Title I preconstruction permits.'' 
Id. at 253. The court's conclusion was ``based principally on Title V's 
text, Title V's structure and purpose, and the structure of the Act as 
a whole.'' Id. at 249.\76\
---------------------------------------------------------------------------

    \76\ The court stated its conclusion several ways, as the 
following examples illustrate: ``Concluding EPA's interpretation of 
the Title V program is independently persuasive and therefore 
entitled to the mild form of deference recognized by Skidmore v. 
Swift & Co., 323 U.S. 134 (1944), we deny the petition.'' 969 F.3d 
at 242. ``[W]e find [the EPA's] reasoning persuasive as a 
construction of the relevant provisions of Title V and its 
implementing regulations.'' Id. at 247. ``Applying Skidmore, we ask 
whether EPA's interpretation of Title V and its implementing 
regulations in the Hunter Order is persuasive. Specifically, we 
inquire into the persuasiveness of EPA's current view that the Title 
V permitting process does not require substantive reevaluation of 
the underlying Title I preconstruction permits applicable to a 
pollution source. As we read it, the Hunter Order defends the 
agency's interpretation based principally on Title V's text, Title 
V's structure and purpose, and the structure of the Act as a whole. 
Having examined these reasons and found them persuasive, we conclude 
that EPA's current approach to Title V merits Skidmore deference.'' 
Id. at 249.
---------------------------------------------------------------------------

    Shortly thereafter, the U.S. Court of Appeals for the Tenth Circuit 
issued a ruling vacating and remanding the PacifiCorp-Hunter I Order. 
Sierra Club v. EPA, 964 F.3d 882 (10th Cir. 2020). Unlike the Fifth 
Circuit, the Tenth Circuit did not address the EPA's statutory 
interpretation but instead rejected the EPA's reasoning as inconsistent 
with the EPA's regulations. Id. at 897. According to the Tenth Circuit, 
the EPA's regulations require that title V permits ensure compliance 
with all ``applicable requirements,'' which the court interpreted to 
include all requirements in the SIP, including those related to major 
NSR. Id. at 885-86, 890-91.
    Because these two courts ruled on different grounds (with the Fifth 
Circuit focusing on the statute, and the Tenth Circuit focusing on the 
EPA's existing regulations), the legal reasoning underlying their 
holdings is not in direct conflict. However, for practical purposes, 
the differing rulings have made it difficult for the EPA to apply a 
uniform interpretation of its current title V regulations nationwide.
    Within the Tenth Circuit's jurisdiction, in the EPA's subsequent 
responses to petitions on the PacifiCorp-Hunter permit (PacifiCorp-
Hunter II <SUP>77</SUP> and PacifiCorp-Hunter III \78\), the EPA 
reviewed whether a source should have obtained a major NSR permit for 
projects previously authorized by a minor NSR permit. This review was 
based on the Tenth Circuit's decision on the PacifiCorp-Hunter I Order.
---------------------------------------------------------------------------

    \77\ In the Matter of PacifiCorp Energy, Hunter Power Plant, 
Order on Petition Nos. VIII-2016-4 & VIII-2020-10 (Jan. 13, 2021).
    \78\ In the Matter of PacifiCorp Energy, Hunter Power Plant, 
Order on Petition No. VIII-2022-2 (Sept. 27, 2022).
---------------------------------------------------------------------------

    In title V petition orders regarding permits issued by states 
outside of the Tenth Circuit, however, the EPA has followed a different 
approach. As the EPA has explained:

    EPA continues to believe that the interpretation of the CAA 
upheld by the Fifth Circuit's decision in Environmental Integrity 
Project v. EPA, 969 F.3d 529 (5th Cir. 2020), is correct. EPA thus 
intends, where supported by the facts of individual permits, to 
continue to apply the reasoning of In re Big River Steel, LLC, Order 
on Petition No. VI-2013-10 (October 31, 2017), when issuing and 
reviewing title V permits and reviewing petitions on permits for 
sources in states outside of the Tenth Circuit. That is, where EPA 
has approved a state's title I permitting program, duly issued 
preconstruction permits establish the NSR-related ``applicable 
requirements'' for the purposes of title V. As with ``applicable 
requirements'' established through other CAA authorities, the terms 
and conditions of those permits should be incorporated into a 
source's title V permit without a further round of substantive 
review as part of the title V process.\79\
---------------------------------------------------------------------------

    \79\ PacifiCorp-Hunter III Order at 16 n.29; see also 
PacifiCorp-Hunter II Order at 15 n.26.

    Thus, when reviewing permits issued by permitting authorities in 
states beyond the Tenth Circuit's jurisdiction, the EPA has continued 
to apply its approach dating back to 2017 and has, in many instances, 
declined to use the title V process to review the substance of NSR 
permitting decisions. In the situations outside the Tenth Circuit where 
the EPA decided that it was appropriate to use the title V process to 
review certain NSR issues, these decisions were not based on the Tenth 
Circuit's interpretation of the EPA's regulations, but rather on 
factual distinctions that, in the EPA's view, provided a basis for 
reviewing such issues under EPA's post-2017 interpretation of the 
regulations.\80\
---------------------------------------------------------------------------

    \80\ See Suncor East Order at 46 n.61; Gulf Coast Growth 
Ventures Order at 17 n.28; ExxonMobil Baytown Chemical Order at 14 
n.27; BP Whiting II Order at 13 n.24; Coyote Station Order at 12.
---------------------------------------------------------------------------

    As explained in the next section of this preamble, the EPA 
continues to maintain that the Big River Steel Order and subsequent 
title V orders reflect the best interpretation not only of the relevant 
statutory provisions, but also of the existing regulations. 
Nonetheless, in light of the differing circuit court decisions, the EPA 
considers it prudent to update the EPA's regulations to reflect its 
interpretation of the statute. The changes proposed in this rulemaking 
will allow the EPA to apply a single framework across the nation by 
amending the text in the regulations.

[[Page 1165]]

This action thus addresses the ruling from the Tenth Circuit by 
amending the regulatory language that it found to be in conflict with 
the EPA's current interpretation. It also more clearly aligns the EPA's 
regulations with the EPA's statutory interpretation endorsed by the 
Fifth Circuit.

B. Proposed Action

    The EPA proposes to update its regulations to more closely reflect 
the agency's current view regarding the intersection between title I 
permitting and title V permitting. In sum: provided a source obtains an 
NSR permit under EPA-approved (or EPA-promulgated) title I rules, with 
public notice and the opportunity for comment and judicial review, such 
NSR permit establishes the NSR-related ``applicable requirements'' of 
the SIP (or FIP) for purposes of title V. As with ``applicable 
requirements'' established under other CAA authorities (e.g., NSPS, 
NESHAP), the EPA would not revisit those NSR decisions through the 
title V process.
    The following subsections of this preamble explore the situations 
in which NSR-related applicable requirements of the SIP (or FIP) would 
effectively be established through the NSR process, as well as 
situations in which the title V process could be used to further 
address or define those requirements. Determining the extent to which 
title V should be used to address NSR-related requirements inherently 
requires a fact-specific, case-by-case analysis of multiple variables 
associated with both title I and title V permitting. However, in 
general, the EPA's framework applies similarly regardless of: (i) the 
stage of the title V permitting or oversight process at issue; (ii) the 
NSR permit's origin (i.e., from a SIP or a FIP), (iii) the type of 
substantive NSR requirement at issue (e.g., NSR permit terms or major 
NSR applicability); and (iv) the procedures by which the NSR permit is 
incorporated into the title V permit (e.g., sequentially or 
concurrently issued permits).
1. Different Stages of the Title V Permitting and Oversight Process
    The EPA's views regarding the NSR-title V interface have primarily 
been discussed in the context of one specific oversight tool: the EPA's 
responses to title V petitions. This rulemaking would further codify 
the scope of issues that would be within, or beyond, the scope of the 
EPA's review in responding to title V petitions. However, the concepts 
underlying the EPA's current view--as well as this proposed rule--are 
not confined to title V petitions, but extend to other aspects of title 
V permitting. Specifically, the EPA's approach is equally relevant: (i) 
when prospective permittees prepare title V permit applications; (ii) 
when permitting authorities (including EPA, where applicable) develop 
title V permits and respond to public comments on draft title V 
permits, (iii) when EPA reviews and decides whether to object to 
proposed title V permits during its 45-day review period; (iv) when EPA 
considers reopening title V permits for cause; and (v) when EPA 
considers other programmatic oversight actions under, for example, 40 
CFR 70.10.
2. Different Origins of NSR Permits
    As described earlier in this preamble, the EPA's approach to 
reviewing NSR issues through title V diverged in the late-1990s, 
depending on whether the underlying NSR permit was issued under a 
state's EPA-approved SIP rules (which the EPA would review) or EPA-
promulgated FIP rules (which the EPA would not review). At the time, 
this distinction was based on the differing routes to review such NSR 
permitting actions; appeals of SIP-based NSR permits were reviewed 
through the state court system, while appeals of FIP-based NSR permits 
proceeded through the EAB and federal court system.
    Instead of presenting a basis to treat SIP-based and FIP-based 
title I permits differently, these NSR permit appeal pathways highlight 
why they should be treated similarly. Both SIP-based and FIP-based 
appeal pathways promote public involvement and ensure the substantive 
validity of the underlying NSR permitting decisions. Both pathways are 
similar to those used to establish (and, if necessary, challenge) other 
types of applicable requirements of the CAA. See section IV.E.4.a. of 
this preamble for additional information. The fact that one pathway 
leads to the state courts, and the other pathway leads to the federal 
courts, simply reflects the cooperative federalism system established 
by Congress for the NSR program.\81\
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    \81\ For additional information about how the EPA's approach to 
SIP-based NSR permits comports with the structure of the CAA and 
congressional intent, see sections IV.E.2. and IV.E.3. of this 
preamble.
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    Overall, the EPA does not view the difference between NSR-based 
requirements established pursuant to a SIP, or NSR-based requirements 
established pursuant a FIP, to be meaningful insofar as title V is 
concerned. Both processes effectively establish and define the NSR-
related requirements of title I for title V purposes. Accordingly, the 
EPA's proposed rule would codify the EPA's current approach, which does 
not differentiate between NSR permits issued pursuant to a SIP or a 
FIP.\82\
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    \82\ This is consistent with the existing regulatory definition 
of ``applicable requirement,'' which treats SIP-based and FIP-based 
requirements the same. See 40 CFR 70.2, 71.2 (definition of 
applicable requirement, items (1) and (2)).
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3. Different Types of NSR Requirements
    The EPA's current (and proposed) approach applies regardless of the 
types of NSR requirements involved. That is, once an NSR permit has 
been issued under EPA-approved (or EPA-promulgated) title I rules, with 
public notice and the opportunity for comment and judicial review, that 
NSR permit defines the NSR-related requirements of the SIP (or FIP) 
that are applicable to the construction of the new source or 
modification that was the subject of the permit. The terms of both 
major and minor NSR permits are applicable requirements that must be 
included in title V permits.\83\ These permit conditions are not 
derived or created within or through the title V process. Thus, the 
title V permitting process should not be used to reevaluate the terms 
of such major NSR or minor NSR permits, including questions about (i) 
the content of the NSR permit (e.g., whether the permit limits reflect 
BACT), (ii) whether additional requirements (e.g., major NSR 
requirements) should have been applicable to the construction, and 
(iii) other types of NSR requirements (e.g., whether the permitting 
authority correctly determined that the construction would not cause or 
contribute to a violation of the NAAQS).
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    \83\ The EPA's existing regulations reflect this fact. The 
current definition of ``applicable requirement'' includes ``Any term 
or condition of any preconstruction permits issued pursuant to 
regulations approved or promulgated through rulemaking under title 
I, including Parts C or D, of the Act.'' 40 CFR 70.2 (emphasis 
added). This definition includes not only the specifically listed 
major NSR permits (required under parts C or D), but also minor NSR 
permits issued under a SIP. This language, included in the 1992 
final rule, reflects a change from the language in the 1991 proposed 
rule, which only included major NSR permits. See 57 FR at 32276; 56 
FR at 21768. Nonetheless, in order to provide maximum clarity to the 
public, the EPA proposes a small change to make the inclusion of 
minor NSR permit requirements more explicit. Note that not every 
single term of every single NSR permit is an ``applicable 
requirement'' that must be included in a title V permit. Some terms 
of NSR permits may no longer be applicable because, for example, 
they are obsolete or extraneous. See White Paper for Streamlined 
Development of Part 70 Permit Applications, 7-16 (July 10, 1995).
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    This principle is perhaps most intuitive with respect to permit 
content. When a permitting authority authorizes construction by issuing 
either a major NSR permit or minor NSR permit, it establishes emission 
limits and other

[[Page 1166]]

standards necessary to satisfy the SIP requirements relevant to either 
major or minor NSR. For example, PSD permits must include emission 
limits reflecting BACT; NNSR permits must include emission limits 
reflecting the Lowest Achievable Emissions Rate (LAER), and minor NSR 
permits may contain analogous requirements depending on the terms of 
the SIP. Although SIPs contain general criteria for establishing those 
limits, individual permit actions are necessary to specifically define 
the limits for each source subject to NSR. Once these limitations are 
established through the NSR permitting process, the title V process 
should not be used to re-evaluate whether the resulting limits reflect 
the general SIP requirements related to BACT, LAER, or other similar 
requirements.
    Similar concepts apply to questions about NSR applicability. SIPs 
contain general criteria and thresholds for determining the 
applicability of different SIP requirements. However, determining which 
specific requirements apply to individual emission units requires a 
fact-specific permitting exercise. When a permitting authority 
authorizes construction by issuing either a minor NSR permit or major 
NSR permit, it decides which NSR-related SIP requirements are 
applicable to different aspects of the project on a pollutant-by-
pollutant basis. The resulting NSR permit might include PSD 
requirements (e.g., BACT) for some pollutants, NNSR requirements (e.g., 
LAER) for other pollutants, and/or minor NSR requirements for yet other 
pollutants. In this manner, within a single NSR permit action, 
questions about the applicability of different NSR requirements may be 
inextricably linked with questions about the content of the NSR permit. 
Further, questions about NSR permit content and NSR applicability are 
fundamentally similar because both questions seek to answer whether 
permit limits are set at a level stringent enough to satisfy the 
relevant general SIP requirements, and both questions require a highly 
technical application of general SIP criteria to specific circumstances 
at the source.\84\ Thus, once an NSR permit is issued, the limitations 
and other terms of that permit establish all relevant NSR-related 
requirements of the SIP (whether major or minor NSR) that apply to 
construction or modification of the source, and should be incorporated 
into the title V permit without further review.\85\
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    \84\ For example, questions about whether (i) an emission limit 
that purports to satisfy BACT should instead be made more stringent 
in order to satisfy BACT are similar to questions about whether (ii) 
an emission limit that purports to satisfy minor NSR requirements 
should instead be made more stringent in order to satisfy BACT.
    \85\ See section IV.E.4.a. of this preamble for additional 
discussion about how the EPA's treatment of NSR applicability issues 
aligns with the EPA's treatment of other types of CAA applicability 
issues.
---------------------------------------------------------------------------

    Permitting authorities satisfy other types of NSR requirements in a 
SIP when issuing NSR permits. One requirement that frequently arises in 
the context of title V petitions involves determining that the new 
source or modification will not cause or contribute to a violation of 
the NAAQS. Again, to satisfy this requirement, the state must undertake 
a fact-specific analysis through the NSR permitting process. This 
analysis may (but does not always) involve atmospheric dispersion 
modeling, and this may (but does not always) result in the imposition 
of additional permit terms that restrict emissions in order to protect 
the NAAQS.\86\ In all cases, the NSR permitting process is designed to 
ensure that the NSR permit ultimately contains whatever specific 
conditions are necessary to satisfy this NSR SIP requirement. Similar 
principles hold true for a variety of other substantive NSR 
requirements in SIPs, including a variety of requirements that are 
unique to NNSR.
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    \86\ In this manner, not all NSR-based SIP requirements related 
to the NAAQS result in the imposition of requirements that apply to 
emission units at a source. As discussed previously, only those 
requirements that ``apply to emissions units in a part 70 source'' 
qualify as ``applicable requirements'' for title V purposes. 40 CFR 
70.2; see 40 CFR 71.2.
---------------------------------------------------------------------------

    Overall, substantive issues concerning NSR permit content, NSR 
applicability, and other NSR requirements are fundamentally similar. 
Each of these decisions require a state to derive specific requirements 
for an individual source from general criteria in the NSR portion of 
the SIP (e.g., requirements to include limits reflecting certain 
technology-based criteria, to issue major NSR permits to projects 
meeting certain applicability criteria, or to ensure that permits meet 
certain criteria relevant to the NAAQS). Each of these determinations 
involve relatively complex, fact-specific decisionmaking, which occurs 
during the NSR permitting process. Once that process concludes, the 
state issues an NSR permit that contains these source-specific 
applicable requirements of the SIP for the construction project being 
authorized. Thus, under the EPA's current (and proposed) approach, all 
types of different NSR-related issues are generally treated the same 
for purposes of title V review. The merit and validity of these 
substantive requirements are subject to review and correction through 
the available mechanisms for appeal of the NSR permit, and need not be 
further reviewed by a state permitting authority or the EPA through 
title V.
    Note that compliance with procedural requirements associated with 
the issuance of NSR permits are also subject to review in appeals of 
NSR permits and are also not directly reviewable through title V. 
However, the latter is for reasons not directly related to the 
interpretation of ``applicable requirements'' at issue in this proposed 
rule. Under the statute and the EPA's existing regulations, the EPA can 
object to a title V permit that does not comply with ``applicable 
requirements'' of the CAA (as that term is defined in EPA regulations) 
or requirements of part 70, including procedural requirements of part 
70. See 42 U.S.C. 7661d(b); 40 CFR 70.8(c)(1), 70.12(a)(2), (a)(2)(ii)-
(iv). Notably, the EPA's authority to object under CAA section 505(b) 
only extends to the particular proposed title V permit before the 
agency for review.\87\ Procedural requirements associated with NSR 
permit issuance are not ``applicable requirements'' for title V 
purposes because they do not ``apply to emissions units at a part 70 
source.'' 40 CFR 70.2. Rather, they dictate the behavior of permitting 
authorities in issuing NSR permits. Procedural requirements associated 
with NSR permit issuance are also not part 70 requirements because they 
are not related to title V or the part 70 regulations governing the 
issuance of a specific title V permit. Thus, alleged violations of 
procedural requirements associated with NSR permit issuance generally 
would not provide an independent basis for the EPA to object to a title 
V permit that incorporates such an NSR permit.\88\ Nonetheless, 
although procedural flaws with the issuance of an NSR permit would not 
provide a direct basis for the EPA to object to a title V permit, such 
procedural issues could impact whether other more substantive NSR 
issues should be reviewed through the title V process. See section 
IV.B.5.a. of this preamble for further information.
---------------------------------------------------------------------------

    \87\ The references within CAA section 505(b) to ``any permit,'' 
``the proposed permit,'' ``a permit,'' ``the permit,'' etc. apply to 
the title V permit that a permitting authority proposes to issue and 
transmits to EPA under CAA section 505(a)(1). 42 U.S.C. 7661d(a), 
(b)(1), (b)(2); see also 40 CFR 70.8(c)(1), (d) (similar language 
and cross-references as the statute), 70.12(a)(1) (requirement that 
petitioners identify the specific title V permit action on which the 
petition is based), 70.12(a)(2) (petition claims must be based on 
alleged deficiencies in the ``permit process'' associated with the 
title V permit being petitioned).
    \88\ See Century Aluminum Order at 19-20.

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[[Page 1167]]

4. Different Procedures for Incorporating NSR Permits Into Title V 
Permits
    In most cases, the EPA's current (and proposed) approach applies in 
the same way regardless of the procedures by which a state permitting 
authority incorporates the terms of an NSR permit into a title V 
permit. In other words, as long as a permitting authority formally 
issues an identifiable NSR permit that has the force of law \89\--and 
regardless of whether the NSR and title V permits are issued 
sequentially, contemporaneously, or even in the same physical 
document--the unique title V oversight tools should not be used to 
review the NSR-related decisionmaking underlying that NSR permit.
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    \89\ Because it is the NSR permit that establishes the 
``applicable requirements'' for title V purposes, the EPA has long 
explained that title V permits do not supersede title I permits--
which must remain in effect to authorize construction and/or 
operations--even after the terms of a title I permit are 
incorporated into a title V permit. See, e.g., 69 FR 10167, 10170 
(Mar. 4, 2004); 66 FR 64039, 64040 (Dec. 11, 2001); Letter from John 
S. Seitz, EPA, to Robert Hodanbosi & Charles Lagges, STAPPA/ALAPCO, 
Encl. A at 4 (May 20, 1999).
---------------------------------------------------------------------------

    The EPA's approach is most straightforward when an NSR permit is 
issued in final form prior to the initiation of any title V permitting 
action, or when an NSR permit has already been included in a previous 
version of a title V permit that is up for renewal. This is the default 
approach, as the EPA's regulations allow regulated entities subject to 
major NSR preconstruction permitting requirements to submit a title V 
permit application within 1 year after beginning operation, in most 
cases. 40 CFR 70.5(a)(1)(ii); 71.5(a)(1)(ii). Additionally, where new 
requirements become applicable to a source, including by virtue of a 
change to the source (e.g., minor NSR requirements), the timeline for 
reopening a source's title V permit to include such requirements 
depends on the amount of time left in the title V permit; required 
revisions would either need to be completed within 18 months or at the 
next permit renewal. 40 CFR 70.7(f)(1)(i), 71.1(f)(1)(i). Regardless of 
the specific timing, it should be straightforward in these instances to 
simply incorporate the applicable requirements from the previously 
finalized NSR permit into the title V permit.
    Not all NSR and title V permits are processed sequentially. Before 
discussing more streamlined permit issuance mechanisms, it is important 
to recognize that the NSR and title V permitting programs are based on 
distinct federal and state statutory and regulatory authorities and 
feature significant differences in both their substantive and 
procedural requirements. However, the two programs do feature some 
overlapping public participation requirements, including requirements 
for public notice, the opportunity for public comment, and the 
opportunity for judicial review. Accordingly, some state permitting 
authorities choose to streamline permit issuance by conducting one 
process that satisfies both sets of overlapping requirements. Based on 
the EPA's experience, the mechanisms that state permitting authorities 
use to streamline the permitting processes vary considerably across the 
nation. Different streamlining mechanisms have received various labels, 
including ``combined,'' ``merged,'' or ``unified'' permits.\90\ This 
preamble addresses three of the more common forms of streamlining. For 
example, some permitting authorities streamline NSR and title V permit 
issuance by processing the two permits concurrently, subject to 
overlapping public participation opportunities.\91\ There are two basic 
variations to this theme. First, the permitting authority could 
concurrently issue the NSR permit as a standalone document containing 
only NSR permit terms, and also issue a title V permit containing all 
existing title V permit terms as well as the new NSR permit terms. Or, 
second, the permitting authority could issue one permit document that 
contains both the NSR permit and title V permit conditions. Some 
permitting authorities employ a third mechanism, whereby the NSR permit 
is first issued with enhanced procedural and substantive requirements 
(based on title V requirements), and then the NSR permit requirements 
are subsequently incorporated into a title V permit through an 
administrative amendment process that does not require public 
participation.
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    \90\ The EPA considers it more appropriate to refer to the 
results of such streamlining as a combined ``permit,'' as opposed to 
a combined ``program.'' This is because, although a single permit 
document may be used to satisfy both NSR and title V permitting 
requirements, the requirements of the NSR and title V programs are 
legally distinct. See Riverview Order at 25-26.
    \91\ This process is similar to another mechanism for permit 
streamlining (not directly implicated by this rulemaking), under 
which a permitting authority may consolidate two procedures 
associated with title V permit issuance: the public's review of a 
draft permit and the EPA's review of a proposed permit. See 40 CFR 
70.8(a)(1)(ii).
---------------------------------------------------------------------------

    The first approach--featuring separate NSR and title V permit 
documents issued at or around the same time--is undoubtedly the 
clearest of the various streamlining approaches. There can be no 
mistaking the fact that there are two legally distinct permit actions, 
and it is simple to identify which requirements are based on the NSR 
regulations (and thus not subject to additional review through title 
V).\92\
---------------------------------------------------------------------------

    \92\ See South Louisiana Methanol Order at 9; SSS/WP Order at 
14-15.
---------------------------------------------------------------------------

    The second approach is also viable, provided the underlying 
authority for the NSR aspects of the permit document are readily 
ascertainable from the permit(s) and permit record(s). See 40 CFR 
70.6(a)(1)(i). As explained in detail in several petition orders,\93\ 
even where NSR and title V permit authorizations are contained within 
one permit document, such a permit action actually reflects two legally 
distinct permit actions by the state: (i) a preconstruction permit 
issued under the EPA-approved title I SIP regulations governing NSR, 
and (ii) an operating permit under EPA-approved part 70 regulations 
governing title V. Again, NSR permits and title V permits are based on 
differing statutory and regulatory schemes, and although the two 
programs feature similarities, they also feature important substantive 
and procedural differences. A permitting authority's decision to 
increase administrative efficiency by issuing a single permit document 
to satisfy the legal requirements of two distinct permitting programs 
does not alter the applicability of requirements associated with each 
respective program. For example, substantive requirements unique to NSR 
would not be applied to establish or evaluate non-NSR-based title V 
permit terms. Likewise, procedural requirements unique to title V 
(including the EPA's objection authority and public petition 
opportunity, among other things) would not be extended to review 
substantive elements of the permit action unique to the NSR permitting 
process. The EPA's objection authority, and the public's ability to 
petition EPA to object, are confined by the CAA to title V permits. See 
42 U.S.C. 7661d(b). Combining the procedures by which a permitting 
authority issues NSR and title V permits does not alter this basic 
principle.
---------------------------------------------------------------------------

    \93\ See Waelz Order at 13-15; Riverview Order at 24-28; Yuhuang 
II Order at 7-8; Big River Steel Order at 11-12.
---------------------------------------------------------------------------

    The EPA appreciates that the combined-permit approach has the 
potential to introduce more confusion about which types of issues can 
be raised through different public participation avenues. In general, 
provided the permitting authority complies with existing regulatory 
requirements, the EPA believes this

[[Page 1168]]

confusion can be minimized. First, the public could comment on all 
portions of a combined permit document during the comment period 
associated with the combined permit document. Similarly, all portions 
of a combined permit document could be challenged in a state court 
appeal of the final permit action.\94\ Beyond that, the available 
mechanisms to challenge different permitting decisions would diverge. 
The EPA's 45-day review of the proposed permit, and the subsequent 
public petition opportunity, would apply only to title V-related 
aspects of the permit action. Likewise, unique oversight tools 
associated with title I permits (e.g., the EPA's authority under CAA 
section 167 to order a stop in work) would only apply to title I-
related aspects of the permit action.
---------------------------------------------------------------------------

    \94\ Provisions governing the right to appeal final title V 
permits in state court is provided by 42 U.S.C. 7661a(b)(6) and 40 
CFR 70.4(b)(3)(x)-(xii). For a discussion of equivalent 
opportunities to challenge title I permits in state court, see 
section IV.C.2. of this preamble.
---------------------------------------------------------------------------

    Differentiating between NSR-based and title V-based permit terms in 
a combined permit should be straightforward, as all title V permits 
``shall specify and reference the origin of and authority for each term 
or condition, and identify any difference in form as compared to the 
applicable requirement upon which the term or condition is based.'' 40 
CFR 70.6(a)(1)(i).\95\ Thus, any NSR-related terms should be readily 
distinguishable from any non-NSR-related terms (or any title V-related 
terms related to monitoring and compliance assurance). The substance of 
appropriately designated NSR-based permit terms should not be subject 
to additional scrutiny through the unique title V oversight tools.
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    \95\ This requirement is important in all situations where NSR 
permit terms (and permit terms derived from other CAA programs) are 
incorporated into a title V permit. However, it is especially 
important when NSR permit authorizations are issued within the same 
document as a title V permit in the first instance.
---------------------------------------------------------------------------

    Although the EPA's approach generally applies the same regardless 
of whether NSR and title V permits are sequentially or concurrently 
issued, there are important qualifications to this principle. Most 
notably, NSR permits must be finalized by the time the title V permit 
is finalized in order to establish the ``applicable requirements'' for 
title V purposes.\96\ Moreover, it is critically important that 
concurrently issued permits (including combined permit documents) are 
clear as to the nature of, and the legal authority underlying, the 
permit actions reflected therein. This principle applies to the public 
notice announcing such permit action, other portions of the permit 
record available for public review, and the terms of the permit(s). 
See, e.g., 40 CFR 70.7(h)(2), 70.7(a)(5), 70.6(a)(1)(i). Where NSR and 
title V permit documents have been merged to such an extent that it is 
impossible to legally distinguish the NSR permit action from the title 
V permit action, it may be necessary to use the title V process to 
review whether the NSR-related requirements of the SIP are included in 
the title V permit. The next subsection elaborates on these and other 
situations in which NSR issues would be subject to review through title 
V oversight tools.
---------------------------------------------------------------------------

    \96\ Although the regulatory definition of ``applicable 
requirement'' includes ``requirements that have been promulgated or 
approved by EPA through rulemaking at the time of issuance but have 
future-effective compliance dates,'' 40 CFR 70.2, 71.2, this only 
covers future-effective requirements that have already been 
finalized at the time of title V permit issuance.
---------------------------------------------------------------------------

    A third process used by some permitting authorities is often 
described as ``enhanced NSR.'' The EPA's existing regulations allow 
requirements from an NSR permit issued with certain enhancements to be 
incorporated into a title V permit via administrative amendment 
procedures (instead of a significant modification or minor modification 
procedures, which would otherwise be required). To qualify for this 
type of streamlined processing, the NSR permit would need to be issued 
following ``procedural requirements substantially equivalent to the 
requirements of [40 CFR] 70.7 and 70.8 . . . that would be applicable 
to the change if it were subject to review as a permit modification, 
and compliance requirements substantially equivalent to those contained 
in [40 CFR] 70.6.'' 40 CFR 70.7(d)(1)(v); see 71.7(d)(1)(v).
    This third pathway has the potential to create confusion--and to 
conflict with the EPA's current (and proposed) approach--because the 
language quoted earlier may be read to mean that the EPA's objection 
authority and the public petition opportunity in 70.8(d) apply to the 
issuance of the NSR permit.\97\ This result is problematic for multiple 
reasons. For one, the CAA only provides the EPA with authority to 
object to the issuance of title V permits, not NSR permits. Similarly, 
the statutory obligation for the EPA Administrator to respond to 
petitions under CAA section 505(b)(2) only applies to petitions on 
title V permits. 42 U.S.C. 7661d(b)(2). Moreover, even if the EPA were 
to object to the issuance of an NSR permit, the EPA generally lacks 
authority to enforce such objection, as the EPA cannot issue the NSR 
permit if the state does not resolve the EPA's objection. Again, the 
authority to do so only relates to title V permits. 42 U.S.C. 7661d(c). 
Further, the existence of this process creates more confusion about the 
scope of issues properly subject to review during the NSR permitting 
action than the other two streamlined pathways. This is because it may 
be more difficult to distinguish title I and title V components within 
a single ``enhanced NSR'' permit.\98\ Based on the preamble of the 
EPA's 1992 title V rules, it appears that the EPA's original intention 
when promulgating this mechanism was to generally confine EPA's review 
to the title V-based components of the enhanced NSR permit (i.e., the 
compliance requirements in 40 CFR 70.6).\99\ However, contradictory 
positions taken by EPA in subsequent years has created confusion.\100\
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    \97\ The EPA observes that some permitting authorities have EPA-
approved SIP and/or title V program rules that differ from the EPA's 
regulations in this respect. Specifically, some EPA-approved state 
rules reserve the EPA's objection authority and public petition 
opportunity until the title V permit is administratively amended. 
This arrangement features less potential for confusion and less 
conflict with the EPA's current (and proposed) approach. See AK 
Steel Order at 10-12.
    \98\ For similar reasons, this process could cause difficulties 
with respect to allocating title V permit fees consistent with 40 
CFR 70.9.
    \99\ See 57 FR at 32289 (``The primary intent of these 
`enhancements' of the NSR process is to allow the permitting 
authority to consolidate NSR and title V permit revision procedures. 
As stated in the May 10, 1991 proposal, it is not to second-guess 
the results of any State NSR determination. For example, if a State 
does provide for EPA's 45-day review in its NSR program, EPA would 
only be reviewing whether the State had conducted a BACT analysis, 
if applicable, and whether that analysis is faithfully incorporated 
in the title V permit. The EPA will not use its review period to 
object to or attempt to revise the State's BACT determination. 
Correspondingly, EPA's failure to object to the substance of the 
BACT determination will not limit any remedies EPA might-otherwise 
have under the Act to address a faulty BACT determination.'').
    \100\ See, e.g., In the Matter of Alon USA, Bakersfield 
Refinery, Order on Petition No. IX-2014-15 at 2-7 (Dec. 21, 2016).
---------------------------------------------------------------------------

    Although this third pathway reflected the EPA's attempt to allow 
for the streamlining of NSR and title V permit procedures, it raises 
more issues than it solves, and ultimately it is not necessary. The 
other two streamlining mechanisms--concurrent issuance of NSR and title 
V permits either in separate documents or in a single combined permit 
document--cause fewer problems and provide more advantages. 
Specifically, concurrent issuance mechanisms are compatible with the 
EPA's current (and proposed) approach to the title I/title V interface, 
while the ``enhanced NSR'' mechanism appears to erroneously suggest 
that the EPA has authority to directly object to title I permits. 
Additionally, concurrent

[[Page 1169]]

issuance mechanisms allow permitting authorities to more clearly 
delineate the title I and title V permit actions, providing more 
clarity to the public about which issues may be challenged through 
different review pathways. Finally, concurrent issuance mechanisms are 
more efficient than the enhanced NSR mechanism, as permitting 
authorities need not take an additional, separate title V 
administrative amendment action after issuing an NSR permit.
    For the foregoing reasons, the EPA proposes to remove from its 
regulations the provisions relating to enhanced NSR permitting and 
related title V administrative amendments. The EPA solicits comment on 
whether state permitting authorities should remove equivalent 
regulations from their EPA-approved program rules, although the EPA 
does not anticipate such actions will be necessary. Instead, it should 
be sufficient for permitting authorities to simply stop using this 
mechanism in a manner that purports to provide an EPA objection 
authority and public petition opportunity directly on an NSR permit. In 
any case, the EPA generally will not use its objection authority to 
address the substance of NSR permitting decisions made through this 
process.
    The EPA specifically requests comments regarding additional 
mechanisms that permitting authorities use to streamline the issuance 
of NSR and title V permits. The EPA requests comments about how these 
differing approaches might impact, or be impacted by, the EPA's current 
(and proposed) approach.
5. Situations in Which the Title V Process Will Be Used To Review NSR 
Issues
    There are certain situations in which the title V permitting 
process is the appropriate venue for addressing NSR permitting issues. 
This conclusion is supported by the same statutory and regulatory 
interpretations underlying situations in which the title V permitting 
process is not appropriate for addressing NSR permitting issues. In 
sum, as explained further in the following subsections, where 
applicable requirements are conclusively established under another CAA 
program, they are not substantively addressed through title V. Where 
applicable requirements are not conclusively established under another 
CAA program, they are substantively addressed through title V. Where 
the requirements of another CAA program and the requirements of title V 
feature substantive overlap, such areas of overlap are addressed 
through title V.
a. No Permit Issued Through a Title I Permitting Process With Public 
Notice and the Opportunity for Comment and Judicial Review
    Under the EPA's current (and proposed) framework, title I permits 
issued with public notice and the opportunity for comment and judicial 
review conclusively establish NSR-related ``applicable requirements'' 
of the SIP (or FIP) for title V purposes. But if NSR permitting 
decisions are not developed through a formal process that involves 
public notice and the opportunity for comment and judicial review, the 
public and the EPA have no opportunity to provide input on, or appeal, 
whether the relevant NSR requirements were properly established. In 
this circumstance, it would be inappropriate to simply incorporate any 
such NSR requirements into a title V permit without further review. In 
other words, where NSR-related requirements are not established through 
a public title I permitting process with an opportunity for judicial 
review, the applicable requirements of the SIP (or FIP) relevant to the 
construction project at issue are not yet conclusively defined for 
title V purposes.\101\ In such a situation, the title V process can and 
should be used to assure compliance with the relevant underlying NSR-
related applicable requirements of the SIP (or FIP). This approach is 
similar to how the title V process is used to define the specific 
requirements necessary to assure compliance with general requirements 
of other CAA programs that are not definitively established through a 
separate rulemaking or permitting process, as discussed in section 
III.F. of this preamble.
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    \101\ As explained further in section IV.C.1. of this preamble, 
this view relates only to how an NSR permit is treated during the 
title V permitting process. It does not in any way affect the 
independent enforceability of the NSR permit itself.
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    The title V process can be used to review NSR issues in various 
situations, some of which the EPA has confronted in recent years. For 
example, the EPA has reviewed, and will continue to review, substantive 
NSR issues where no title I permit is issued to authorize the projects 
at issue.\102\ The title V process can be used to ensure that any new 
or modified sources that do not obtain an NSR permit (sometimes called 
``unpermitted projects'') comply with all relevant NSR-related 
requirements of the SIP (or FIP).
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    \102\ See Suncor East Order at 45-48, 54-55 (reviewing NSR 
issues where the state ``has not issued any title I NSR permits that 
would establish the NSR-related `applicable requirements' of the 
SIP''); SRP Agua Fria Order at 11 n.18 (reviewing NSR applicability 
issues where no NSR permit had been issued); SRP Desert Basin Order 
at 12 n.20 (same); BP Whiting II Order at 13 n.24 (reviewing an NSR-
related emission limit that was established in a title V, as opposed 
to an NSR, permit action). Additionally, within a portion of the 
EPA's 2017 PacifiCorp-Hunter I Order that was not challenged and not 
subject to the Tenth Circuit's partial vacatur, the EPA addressed 
the merits of a petition claim involving allegedly unpermitted 
modifications. See PacifiCorp-Hunter I Order at 26-31.
---------------------------------------------------------------------------

    If a preconstruction permit is issued, but not issued under title 
I--that is, not issued under NSR permitting rules that have been 
approved by EPA and incorporated into the SIP or FIP--then such a 
permit would not establish the NSR requirements of the SIP (or FIP) 
that apply to an individual source. Issuance of a non-title I permit 
does not reflect a determination as to which of the NSR requirements in 
a SIP (or FIP) apply to construction and thus does not fulfill any NSR 
requirements in the SIP (or FIP). In this situation, it would thus be 
appropriate to use the title V permitting process to assess whether 
there are NSR requirements in the SIP (or FIP) that apply to a 
construction project covered by a non-title I permit. Moreover, it 
would be appropriate to use the title V permitting process to explore 
whether a preconstruction permit was issued under a title I-based 
authority, as opposed to a non-title I authority.\103\
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    \103\ For example, within a portion of the EPA's 2017 
PacifiCorp-Hunter I Order that was not challenged and not subject to 
the Tenth Circuit's partial vacatur, the EPA addressed the merits of 
a petition claim involving a NSR permit that was allegedly not 
issued under EPA-approved SIP rules. See PacifiCorp-Hunter I Order 
at 24. Determining the authority underlying a preconstruction permit 
could also be relevant in other title V contexts. For example, 
states may issue preconstruction permits under state-only-
enforceable laws (as opposed to federally-approved and federally-
enforceable state laws, or federal laws). Such state-only permit 
requirements may be included in title V permits, but they must be 
labeled as ``state-only'' or ``not federally enforceable'' within a 
title V permit. 40 CFR 70.6(b)(2). Questions about the authority 
underlying such permits would therefore be relevant to determining 
whether 40 CFR 70.6(b)(2) was satisfied. See, e.g., In the Matter of 
Phillips 66 Co., Borger Refinery, Order on Petition No. VI-2017-16 
at 8-10 (Sept. 22, 2021).
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    The EPA has also reviewed, and will continue to review, substantive 
NSR issues where the underlying NSR permit was not issued following 
public notice and the opportunity for comment and judicial review.\104\ 
As previously explained, this is because an NSR permit that is not 
issued following such procedures does not provide the title V

[[Page 1170]]

permit writer or public with sufficient assurance that the 
preconstruction permitting process has conclusively established the 
applicable NSR requirements of the SIP (or FIP) for that source for 
title V purposes. Thus, questions about the procedures used to issue 
NSR permits may be indirectly relevant to the EPA's review of title V 
permits or public petitions on title V petitions.\105\ Specifically, 
such questions may inform whether it is appropriate to use the title V 
process to review the substance of that NSR permit in order to ensure 
that the title V permit reflects, and assures compliance with, all 
relevant NSR applicable requirements of the SIP (or FIP). It is 
important to recognize that procedural problems associated with the 
issuance of an NSR permit would simply present a basis for EPA to 
review the underlying NSR issues; such procedural problems would not 
present an independent basis for the EPA's objection to the title V 
permit.\106\
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    \104\ See Suncor East Order at 48 (reviewing NSR-related issues 
where ``the current title V renewal proceeding is the first permit 
action in which these NSR issues have been subject either to public 
notice and comment or the opportunity for judicial review,'' among 
other reasons); Coyote Station Order at 12 (reviewing NSR-related 
issues ``where no public notice was provided of the underlying NSR 
permit action,'' among other reasons).
    \105\ To the extent the public raises procedural issues related 
to NSR permit issuance in a title V petition, petitioners have the 
burden to demonstrate that the correct process was not followed, 
similar to all other title V petition issues. 42 U.S.C. 7661d(b)(2); 
see 40 CFR 70.12(a)(2).
    \106\ As explained in section IV.B.3. of this preamble, 
procedural requirements associated with NSR permit issuance are 
neither ``applicable requirements'' for title V purposes (because 
they do not apply to emission units at a part 70 source), nor are 
they part 70 requirements (because they are not related to the 
issuance of a specific title V permit).
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    It is also important to recognize that, in proposing to add text to 
parts 70 and 71 referencing ``public notice and the opportunity for 
public comment and judicial review'' of NSR permits, this proposed rule 
would simply establish a precondition relevant to whether underlying 
NSR permits are insulated from, or subject to, additional review 
through title V. These proposed regulatory revisions will not impose 
any binding procedural requirements governing a permitting authority's 
issuance of NSR permits. Rather, such procedural requirements are found 
in the relevant statutory and regulatory authorities governing NSR, and 
the SIP regulations that implement them. See, e.g., 42 U.S.C. 
7475(a)(2); 40 CFR 51.161, 51.165(i), 51.166(q). Although the proposed 
additions to parts 70 and 71 use language similar to existing 
requirements in the NSR rules, this proposed rule does not seek to 
define those concepts in the context of NSR. Rather, outside of this 
title V proposed rule, the EPA is reviewing opportunities for public 
participation in minor NSR permitting.
    For title V purposes, provided an NSR permit is issued following 
public notice, the opportunity to comment, and the opportunity for 
judicial review, the EPA will consider that NSR permit as establishing 
the relevant applicable requirements of the SIP with respect to the 
activities being permitted. Accordingly, the title V permitting process 
will not be used to second-guess the substance of those requirements. 
By codifying such criteria through the current proposed rule, the EPA's 
intent is not to create new requirements on NSR permitting, but rather 
to create an incentive for permitting authorities to offer robust 
opportunities for public involvement on NSR permit actions. In this 
manner, this proposed rule will reinforce existing requirements 
governing public participation on NSR permits and will complement the 
EPA's ongoing efforts to improve public participation in minor NSR 
permitting decisions.
b. Issues Involving Overlapping Title V and NSR Requirements
    The EPA has reviewed (and will continue to review) issues involving 
an overlap of title V and NSR requirements. The most notable example 
involves using title V to evaluate the sufficiency of monitoring and 
related compliance assurance requirements associated with more 
substantive NSR permit requirements. As the EPA explained in one title 
V petition order:

    Unlike the BACT determination claims discussed above, claims 
concerning whether a title V permit contains enforceable permit 
terms, supported by monitoring sufficient to assure compliance with 
an applicable requirement or permit term (such as an emission limit 
established in a PSD permit), are properly reviewed during title V 
permitting. The statutory obligations to ensure that each title V 
permit contains ``enforceable emission limitations and standards'' 
supported by ``monitoring . . . requirements to assure compliance 
with the permit terms and conditions,'' 42 U.S.C. 7661c(a), (c), 
apply independently from and in addition to the underlying 
regulations and permit actions that give rise to the emission limits 
and standards that are included in a title V permit. Therefore, the 
EPA will address the merits of those portions of the Petition that 
challenge the enforceability of emission limits and the sufficiency 
of monitoring conditions in the Permit.\107\
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    \107\ South Louisiana Methanol Order at 10-11; see Gulf Coast 
Growth Ventures Order at 17-19; ExxonMobil Baytown Chemical Order at 
20-21; Yuhuang II Order at 8; see also, e.g., Big River Steel Order 
at 17, 17 n.30, 19 n.32, 20; PacifiCorp-Hunter I Order at 16, 17, 
18, 18 n.33, 19.

    The EPA has also considered (and will continue to consider) other 
issues involving an explicit overlap between NSR and title V. Examples 
addressed to date include situations where a state's SIP rules and part 
70 program rules explicitly require consideration of NAAQS impacts in a 
title V permit proceeding; \108\ where both SIP and part 70 rules 
require an evaluation of the scope of the ``stationary source'' or 
``major source'' subject to permitting requirements; \109\ and where 
SIP rules explicitly require consideration of adjustments to a PAL (a 
type of NSR permitting mechanism) in a title V renewal permit 
action.\110\
---------------------------------------------------------------------------

    \108\ Suncor East Order at 53-54.
    \109\ Coyote Station Order at 12-13.
    \110\ ExxonMobil Baytown Chemical Order at 13-14.
---------------------------------------------------------------------------

    Notably, the EPA's consideration of NSR-related issues within these 
past actions did not involve reevaluating or second-guessing the 
content of applicable requirements established in NSR permitting 
actions. Instead, the EPA's consideration of those issues was based 
either on unique requirements of title V (e.g., to add supplemental 
monitoring to the requirements in underlying applicable requirements) 
or on directives within the SIP itself, which effectively provided a 
mandate to further define applicable requirements of the SIP through 
the title V process (instead of the NSR process). Thus, the limited 
situations in which the EPA does use (and proposes to continue using) 
the title V process to address NSR-related issues is wholly consistent 
with the EPA's position that, in general, the title V process should 
not be used to second-guess or alter substantive applicable 
requirements that are established through a title I permitting process 
with public notice and the opportunity for comment and judicial review.
6. Summary of Proposed Regulatory Changes
    In order to more clearly express the EPA's current approach to the 
interface between NSR permits and title V permits, the EPA proposes the 
following amendments to the EPA's regulations.
    The EPA proposes to update paragraphs (1) and (2) of the definition 
of ``applicable requirement'' in 40 CFR 70.2 and 71.2. Paragraph (1) 
addresses SIP (and FIP) requirements more generally. This rule would 
add text to paragraph (1) to clarify that, for purposes of title V, 
where an NSR permit is issued under an EPA-approved or EPA-promulgated 
title I program (i.e., SIP or FIP), with public notice and the 
opportunity for comment and judicial review, then the terms and 
conditions of that preconstruction permit define the NSR-related 
applicable requirements of the SIP or FIP that apply to the activities

[[Page 1171]]

authorized by such a preconstruction permit.
    This rule would also add text to paragraph (2) to clarify that, for 
purposes of title V, the relevant terms and conditions of all types of 
NSR permits issued under a SIP or FIP--including minor NSR permits--are 
applicable requirements that must be included in a title V permit, 
regardless of whether the procedures referenced in paragraph (1) are 
followed.
    The EPA also proposes to remove the provisions in 40 CFR 
70.7(d)(1)(v), 70.7(d)(4), 71.7(d)(1)(v), and 71.7(d)(4) that relate to 
the ``enhanced NSR'' and title V administrative amendment procedures, 
as discussed in section IV.B.4. of this preamble.
    The EPA does not believe any additional changes to the regulations 
are necessary. However, the EPA requests comments on other changes to 
the regulatory text that would be necessary to fully effectuate the 
EPA's proposed approach.

C. Interaction With NSR Permitting, Oversight, and Enforcement

    Although this rulemaking addresses the intersection of the NSR and 
title V permitting programs, the EPA's proposed approach only directly 
affects implementation of the title V permitting program. More 
specifically, this rulemaking only affects the extent to which the 
title V permitting process will be used to assess whether issuance of 
an NSR permit complies with the NSR-related requirements of a SIP (or 
FIP). Thus, as explained in the following paragraphs, the EPA's 
proposed approach for limiting review of NSR permitting decisions 
through the title V process does not affect the independent validity or 
enforceability of NSR permit terms or the SIP (or FIP) requirements 
upon which they are based.
1. No Impact on the Independent Validity or Enforceability of NSR 
Permits
    As discussed throughout this preamble, where an NSR permit is 
issued following public notice and the opportunity for comment and 
judicial review, the terms and conditions of such a permit establish 
the NSR-related applicable requirements of the SIP (or FIP) for title V 
purposes. Although these permit terms should generally be incorporated 
into the title V permit without further substantive review, an EPA 
decision not to conduct that review in the title V process does not 
mean that the EPA agrees that the state action complies with NSR 
requirements. It merely indicates that a title V permit is not the 
appropriate venue to correct any deficiencies in the NSR permit. Thus, 
even if EPA might find an error upon reviewing a preconstruction 
permitting decision made by the permitting authority, for purposes of 
the title V operating permit, the terms of the NSR permit should be 
incorporated into the title V operating permit until such time that 
there is a final action to revise, reopen, suspend, revoke, reissue, 
terminate, or invalidate the preconstruction permit, such as a court 
order in a state court appeal or through an enforcement action.\111\
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    \111\ As explained previously, this approach is analogous to how 
the EPA treats potential defects in other types of applicable 
requirements, including (non-NSR) requirements of the SIP. For 
instance, even when the EPA has made a determination that a 
provision of the SIP is not in compliance with the Act, the EPA will 
not object to a permit that includes that provision until there is 
final action to remove it from the SIP. See, e.g., Piedmont Green 
Power Order at 28-29. EPA's lack of objection to the inclusion of 
that requirement in the title V permit does not indicate that the 
EPA agrees that it complies with the Act or applicable regulations; 
it merely indicates that a title V permit is not the appropriate 
venue to correct any such flaws in the SIP.
---------------------------------------------------------------------------

    By the same token, if an NSR permit is not issued through a process 
that included public notice and the opportunity for comment and 
judicial review, this proposed rule would not address whether such a 
permit is valid or enforceable in its own right. Rather, this proposed 
rule would only affect how such a permit is treated through title V. 
The terms of such a permit would still need to be included in the title 
V permit under item (2) of the EPA's regulatory definition of 
``applicable requirement.'' However, any such permit terms (and 
underlying permit decisions) would not be sufficient to conclusively 
define the NSR-related ``applicable requirements'' of the SIP under 
item (1) of the EPA's regulatory definition. Therefore, questions about 
the whether the NSR permit satisfied the requirements of the SIP would 
be subject to review through the title V process. But that is the only 
consequence insofar as this proposed rule is concerned. Any relevant 
requirements of the SIP would remain fully enforceable, and the 
independent enforceability of any NSR permit issued without an 
opportunity for comment and judicial review would be determined on the 
basis of those requirements.
2. Title I Oversight and Enforcement Authorities
    Under the EPA's proposed approach for considering NSR permitting 
decisions through the title V permitting process, there are meaningful 
opportunities for the EPA and the public to review NSR preconstruction 
permitting decisions under title I of the CAA.\112\ Congress provided 
various mechanisms for EPA and public oversight of NSR permitting 
decisions.
---------------------------------------------------------------------------

    \112\ If anything, this action has the potential to increase the 
availability of certain enforcement opportunities, as discussed in 
Section IV.C.4. of this preamble.
---------------------------------------------------------------------------

    Specifically, Congress gave the EPA programmatic oversight 
authority under title I to disapprove state NSR permitting programs and 
call for revisions to those programs if the state's program does not 
satisfy federal statutory and regulatory authorities governing NSR. 42 
U.S.C. 7410(a)(2)(C), 7410(k)(5). Further, if a state fails to properly 
implement its NSR program, the EPA can take additional actions. 42 
U.S.C 7413(a)(2), (a)(5).
    In terms of reviewing individual title I permits, each SIP must 
provide for public notice and an opportunity for comment on proposed 
NSR permits in its preconstruction permit program. 42 U.S.C. 
7475(a)(2); 40 CFR 51.161, 51.165(i), 51.166(q). The EPA may provide 
feedback on state-issued NSR permits through this process.\113\ 
Inherent in this title I permitting scheme--and reflected in the 
congressional record for the 1977 CAA Amendments--is the understanding 
that the adequacy of state NSR permitting decisions would be subject to 
review in state administrative and judicial forums.\114\
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    \113\ Title I of the CAA specifically contemplates that the 
``interested persons'' who may comment on state-issued PSD permits 
include ``representatives of the Administrator.'' 42 U.S.C. 
7475(a)(2).
    \114\ ``In order to challenge the legality of a permit which a 
State has actually issued . . . a citizen must seek administrative 
remedies under the State permit consideration process, or judicial 
review of the permit in State court.'' Staff of the Subcommittee on 
Environmental Pollution of the Senate Committee on Environment and 
Public Works, 95th Congress, 1st Session, A Section-by-Section 
Analysis of S. 252 and S. 253, Clean Air Act Amendments 36 (1977), 
reprinted in 5 Legislative History of the Clean Air Act Amendments 
of 1977 3892 (1977). Note that the U.S. Supreme Court has also 
acknowledged the primacy of state courts to adjudicate disputes over 
NSR permit terms. See Alaska Dep't of Env't Conservation v. EPA, 540 
U.S. 461, 490 n.14 (2004); see also id. at 491-94 (addressing the 
relationship between state court review of NSR permits and federal 
oversight tools related to NSR permits). The EPA has expressed 
similar views when approving individual NSR SIPs. See, e,g., 77 FR 
65305, 65306 (Oct. 26, 2012) (The EPA ``interpret[s] the CAA to 
require an opportunity for judicial review of a decision to grant or 
deny a PSD permit, whether issued by EPA or by a State under a SIP-
approved or delegated PSD program.'').
---------------------------------------------------------------------------

    Congress also provided EPA and the public with various enforcement 
mechanisms to address non-compliance with title I permitting 
requirements on a facility-by-facility basis. The EPA possesses the 
authority to issue

[[Page 1172]]

injunctive orders to halt construction. 42 U.S.C. 7413(a)(5)(A), 7477. 
The EPA may also pursue various types of civil or criminal enforcement 
actions pursuant to sections 113 and 167 of the Act. 42 U.S.C. 7413, 
7477. Under title III of the CAA, Congress also provided authority for 
citizens to bring enforcement actions seeking civil penalties and 
injunctive relief against a source that has violated certain NSR 
requirements. Id. 7604(a)(1), (a)(3). These enforcement-based tools can 
be used to address situations where a source failed to obtain a 
required major NSR permit (even if it obtained a minor source permit). 
See e.g., U.S. v. S. Ind. Gas & Elec. Co., No. IP99-1692-CM/F, 2002 WL 
1760699, at *3-5 (S.D. Ind. July 26, 2002); United States v. Ford Motor 
Co., 736 F. Supp. 1539, 1550 (W.D. Mo. 1990). They can also be used to 
ensure that decisions made in establishing the terms of a major NSR 
permit, such as BACT limits, were made on reasonable grounds properly 
supported by the record. See, e.g., Alaska Dep't of Env't Conservation 
v. EPA, 540 U.S. 461 (2004) (affirming application of section 167 of 
the CAA in this context).
3. Title V Permit Shields
    The incorporation of the terms and conditions of an NSR permit into 
a title V permit does not, by itself, diminish the ability of the EPA 
or citizens to enforce preconstruction permitting requirements. 
However, enforcement could be affected by a title V ``permit shield'' 
imposed under CAA section 504(f) and 40 CFR 70.6(f) and 71.6(f). A 
permit shield, if part of an approved title V program and expressly 
included in a title V permit,\115\ may provide a sufficient defense 
from enforcement actions under certain circumstances. This proposed 
rule does not change the agency's interpretation or enlarge the scope 
of a permit shield.
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    \115\ ``A part 70 permit that does not expressly state that a 
permit shield exists shall be presumed not to provide such a 
shield.'' 40 CFR 70.6(f)(2).
---------------------------------------------------------------------------

    There are two types of permit shields under title V. The first, 
default permit shield states that compliance with the title V permit 
``shall be deemed compliance with'' title V. 42 U.S.C. 7661c(f). Where 
a facility is entitled only to this default permit shield, requirements 
of the CAA outside of title V (including NSR requirements) are still 
independently enforceable against the facility.
    A permitting authority may go further to provide a facility with a 
second, more expansive type of permit shield. This more expansive 
permit shield has two prongs. Under the first prong of an expanded 
permit shield, a permitting authority can provide that compliance with 
the title V permit ``shall be deemed compliance with other [non-title 
V] applicable provisions,'' but only if ``the permit includes the 
applicable requirements of such provisions.'' 42 U.S.C. 7661c(f)(1); 
see 40 CFR 70.6(f)(1)(i). Where a title V permit includes this type of 
permit shield and also incorporates the terms of an NSR permit, the 
permit shield would provide that compliance with the title V permit 
would be deemed compliance with the specific applicable requirements 
reflected in the NSR permit. However, compliance with such a title V 
permit would not be deemed compliance with any other requirements that 
are not contained in the NSR permit. For example, if a source obtained 
a minor NSR permit for a project and the title V permit included this 
type of permit shield, compliance with the title V permit would not 
preclude an enforcement action alleging a violation of title I of the 
Act for failure to obtain a major NSR permit.
    Under the second prong of an expanded permit shield, a permitting 
authority can only provide a shield from requirements it has expressly 
determined to be non-applicable. The statute and regulations say this 
shield is available if the state, ``in acting on the [title V] permit 
application[,] makes a determination relating to the permittee that 
such other provisions (which shall be referred to in such 
determination) are not applicable and the permit includes the 
determination or a concise summary thereof.'' 42 U.S.C. 7661c(f)(2); 
see 40 CFR 70.6(f)(1)(ii). In other words, this type of permit shield 
requires that the permitting authority make a written non-applicability 
determination during the title V permitting process and memorialize 
this determination within the title V permit record.
    Further, if a permitting authority chooses to include a title V 
permit shield that expressly covers NSR requirements that either are, 
or are not, applicable to a particular construction project, that 
decision would be based on title V authority and part of the title V 
permit action. As such, the NSR requirements covered by the title V 
permit shield would be subject to review and oversight through title V, 
including being subject to the EPA's objection authority and the public 
petition opportunity. The availability of these title V oversight tools 
is important because an express title V permit shield effectively 
precludes enforcement through the federal court system under CAA 
sections 113 or 304. By including an express permit shield through 
title V, that enforcement-based oversight tool is replaced by oversight 
through the title V permitting process, which provides an alternative 
pathway to the federal courts.\116\
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    \116\ Specifically, if the EPA does not object to a title V 
permit on its own volition, and subsequently denies a petition 
requesting that the EPA object to the permit, such denial may be 
appealed to the relevant U.S. Court of Appeals. 42 U.S.C. 
7661d(b)(2), 7607(b)(1).
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4. Other Enforcement Considerations
    As one federal Court of Appeals explained: ``Title V itself 
reserves the EPA's ability to bring an enforcement action for 
violations of the CAA unless an express `shield' on the face of the 
permit bars that action. This provision would hardly be necessary if 
the EPA was supposed to resolve all alleged violations of the CAA in 
the permitting process.'' Citizens Against Ruining the Environment v. 
EPA, 535 F. 3d 670, 678 (7th Cir. 2008) (quoting 42 U.S.C. 7661c(f)). 
However, other circuit courts have barred enforcement actions that they 
viewed as impermissible collateral attacks on permits.\117\ In these 
cases, the courts' decisions were premised upon the notion that the EPA 
would assess the substantive validity or applicability of certain CAA 
requirements (including NSR requirements \118\) through the title V 
petition process, and that the EPA Administrator's decision in response 
to a title V petition could be challenged in federal court. Based on 
that premise, these courts decided that the jurisdictional bar in CAA 
section 307(b)(2) against ``[a]ctions of the Administrator with respect 
to which review could have been obtained'' applies to bar enforcement 
of these the substantive requirements underlying those enforcement 
actions. 42 U.S.C. 7607(b)(2). These decisions, however, did not 
identify statutory or regulatory text to support this premise; they may 
have been implicitly based on EPA practice from 1997 to 2017.
---------------------------------------------------------------------------

    \117\ See Nucor Steel-Arkansas v. Big River Steel, LLC, 825 F.3d 
444 (8th Cir. 2016); EPA v. EME Homer City Generation, LP, 727 F.3d 
274 (3rd Cir. 2013); Sierra Club v. Otter Tail Power Co., 615 F.3d 
1008 (8th Cir. 2010); Romoland School Dist. v. Inland Empire Energy 
Center, LLC, 548 F.3d 738 (9th Cir. 2008).
    \118\ See Nucor, 825 F.3d at 452-53; Romoland, 548 F.3d at 754-
56.
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    In light of the EPA's position since 2017 with respect to certain 
NSR permits, the premise underlying those cases no longer applies. 
Based on the interpretation of the title V provisions discussed in this 
proposal, the EPA's view is that the title V process does not operate 
to bar enforcement of the NSR permitting requirements on the basis of

[[Page 1173]]

section 307(b)(2). This proposed rule will codify the EPA's current 
view that certain NSR issues are not subject to review through title V 
processes, including the petition process. Because the EPA 
Administrator will not consider or take any action concerning the 
substantive validity of these NSR permitting decisions through title V, 
there is no opportunity for federal judicial review of these issues 
through title V, and therefore the statutory bar in CAA section 
307(b)(2) simply does not apply. Therefore, enforcement of certain NSR-
related requirements in the district court should no longer be viewed 
as a collateral attack on an Administrator's action (or lack thereof) 
through title V for which review could have been obtained in an 
appellate court. At least one court that considered this issue since 
the EPA revised its interpretation in 2017 has declined to impose such 
a jurisdictional bar.\119\
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    \119\ See Sierra Club v. Entergy Arkansas LLC, 503 F.Supp.3d 
821, 847-48 (2020) (``In addition, plaintiffs maintain that the 
EPA's interpretation of statutory language such that it will no 
longer oversee state Title I permit decisions through Title V 
petitions provides an additional basis upon which the Court should 
decline to find and impose an exhaustion requirement. The Court has 
examined the allegations in the amended complaint and the briefing 
with respect to the specific provisions of the CAA under which 
plaintiffs bring claims and the alleged requirements for bringing 
those claims in federal court. The Court is satisfied at this stage 
of the litigation that the Court has subject matter jurisdiction 
over plaintiffs' claims in their amended complaint.'').
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D. Impacts of Proposed Action

    This proposed rule is primarily procedural in nature and does not 
impose any specific or direct requirements on any potentially affected 
stakeholders. Additionally, given that this proposed rule seeks to 
codify the EPA's existing policies and interpretations that have been 
in place since 2017, most of these effects will not arise from this 
regulatory action itself. The following paragraphs summarize the 
anticipated indirect impacts of EPA's current and proposed approach.
1. Impacts on the EPA
    This action most directly affects the EPA itself, and specifically 
the EPA's actions in overseeing both the title V and NSR permitting 
programs. This action will codify the EPA's current framework regarding 
the scope of issues that EPA will--and will not--review through unique 
title V permitting mechanisms, including the EPA's 45-day review of 
title V permits and the EPA's responses to citizen petitions 
challenging title V permits. Reflecting this existing approach more 
directly in regulations will provide consistency across the country and 
ensure that the EPA's permitting oversight resources are most 
effectively focused on the issues where such oversight can achieve the 
greatest results. For example, by not reviewing complex NSR issues 
through its title V oversight tools, the EPA can prioritize using those 
tools to ensure that title V permits assure compliance with substantive 
requirements established in other CAA programs, such as by requiring 
additional monitoring, recordkeeping, and reporting when necessary. 
This action further emphasizes the EPA's commitment to using its 
existing title I oversight tools to address title I permitting issues. 
As discussed in section IV.E.4.b. of this preamble, those title I 
oversight tools are more effective means of addressing title I issues 
than the EPA's title V oversight tools.
2. Impacts on State, Local, and Tribal Permitting Authorities
    This rule may also impact state, local, and Tribal permitting 
authorities that issue title V and/or NSR permits. From the EPA's 
experience, it appears that many, if not most, permitting authorities 
already implement their title V and NSR programs in a manner consistent 
with the EPA's current (and proposed) approach. That is, these 
permitting authorities do not use the title V permitting process to 
revisit NSR permitting decisions that they themselves previously made. 
For permitting authorities that have not been implementing the EPA's 
current approach, this action is expected to decrease administrative 
burdens. Permitting authorities should generally only have to address 
NSR-related permitting issues once: during the NSR permitting process.
    The EPA does not expect it will be necessary for most permitting 
authorities to revise their regulations or to submit revised part 70 
regulations or SIP regulations for EPA approval as a result of this 
proposed rule. The EPA views its existing part 70 and part 71 
regulations--and, by extension, the equivalent regulations in EPA-
approved state rules--to be consistent with the EPA's existing (and 
proposed) approach. This proposed rule is intended to make EPA's 
regulations clearer. Nonetheless, permitting authorities that desire 
the greater certainty associated with the rule revisions proposed in 
this action are welcome to make changes to their regulations similar to 
those the EPA is proposing.\120\ The EPA specifically solicits comments 
from permitting authorities about their ability (or inability) to 
implement the EPA's proposed approach without changes to their EPA-
approved part 70 program rules.
---------------------------------------------------------------------------

    \120\ For example, states within the Tenth Circuit's 
jurisdiction may currently have language that matches the language 
in the EPA's regulation that the court considered in Sierra Club v. 
EPA, 964 F.3d 882 (10th Cir. 2020). Once the EPA revises its own 
regulations, this should provide those states the certainty that the 
EPA will not use the title V process to address NSR issues, even 
within this jurisdiction. However, such states may wish to consider 
the extent to which the Tenth Circuit's reading of the same language 
affects their state law obligations with respect to the title V and 
NSR permitting interface.
---------------------------------------------------------------------------

    The current proposed rule does not itself mandate any requirements 
governing the issuance of NSR permits. However, permitting authorities 
may choose to change some of their NSR permitting practices in order to 
realize benefits in their permitting programs. For example, in order to 
ensure that the EPA will not use its title V oversight tools to revisit 
a permitting authority's NSR permitting decisions, permitting 
authorities may increase the amount of public participation 
opportunities offered on minor NSR permit actions. The EPA strongly 
encourages permitting authorities to provide for robust and meaningful 
public participation opportunities on NSR permitting actions, 
consistent with existing statutory and regulatory requirements and EPA 
guidance.
    Permitting authorities that currently process NSR and title permit 
actions through streamlined processes should consider the best way to 
achieve their administrative efficiency goals while maintaining the 
maximum amount of clarity regarding the distinctions between title I 
and title V permit actions. In particular, the EPA strongly encourages 
permitting authorities that currently employ an ``enhanced NSR'' 
framework to stop using such procedures and instead consider other 
mechanisms for streamlining. See section IV.B.4. of this preamble for 
additional information about how different streamlined permit issuance 
procedures impact the EPA's review of NSR issues through its title V 
authorities.
3. Impacts on Regulated Entities
    As far as regulated entities are concerned, the approach described 
in this action increases certainty in final preconstruction permitting 
decisions. The additional regulatory text that EPA proposes to codify 
in this rulemaking should further increase such certainty. In order to 
take advantage of this increased certainty, the EPA expects that 
sources subject to both title V and NSR permitting programs will have 
an

[[Page 1174]]

incentive to work with their permitting authorities to ensure that all 
relevant NSR permit actions are subject to robust and meaningful public 
participation opportunities.
4. Impacts on the Public
    The EPA expects that the public at large, including communities 
impacted by pollution from facilities regulated under the title V and 
NSR programs, will benefit from the increased clarity provided in this 
rulemaking, as well as from more effective engagement in NSR permitting 
decisions. A central focus of this effort is to more clearly define the 
most appropriate and effective routes for the public to participate 
in--and, if necessary, challenge--different types of CAA permitting 
decisions. In this manner, this rule does not limit meaningful public 
participation, but rather encourages more meaningful public 
participation by directing the public to the pathways that can be used 
to most effectively provide oversight over different types of permits.
    This rule will allow the public, permitting authorities, and the 
EPA to focus their title V-based efforts on issues that can be more 
fully and effectively addressed through title V, such as supplementing 
monitoring when necessary to assure compliance with underlying 
applicable requirements.
    As explained in section IV.E.4.b. of this preamble, the title V 
permitting process has proven a generally ineffective mechanism to 
address deficiencies in NSR permitting actions. The available title I 
permitting and title III enforcement mechanisms are better tools for 
the public to utilize in addressing issues with NSR permitting 
decisions. The EPA's pre-2017 policies that ostensibly allowed the 
public to challenge NSR permit decisions through the title V process 
created a misleading incentive for the public to forego those more 
appropriate and effective title I appeal mechanisms. This process often 
resulted in the public investing considerable resources in pursuing 
title V-based challenges, which had limited effect on the permit terms 
at issue. As this proposed rule makes clear, the public's attention and 
resources would be more effectively deployed in challenges to NSR 
permits through the appropriate title I permitting and title III 
enforcement channels.
    Additionally, the public should benefit from the incentives that 
this rule will create for states and regulated entities to ensure that 
relevant NSR permit actions involve public notice and the opportunity 
for comment and judicial review. These incentives will complement the 
related (but separate) actions that the EPA is considering with respect 
to minor NSR programs. Collectively, these actions should encourage 
increased public participation in the NSR permitting process.
    To the extent that the public is deprived of meaningful 
opportunities to address NSR permit deficiencies, the title V 
permitting process should serve as a backstop so that the public (and 
the EPA) have the ability to ensure that title V permits contain the 
necessary NSR-related requirements.
    The EPA solicits comment on examples of past situations (not 
hypothetical) where the EPA's objection to a title V permit helped 
address NSR-related issues that the public either did, or did not, have 
a chance to address through the NSR permitting process.

E. Rationale for Proposed Action

    As explained in the following subsections, title V of the CAA does 
not compel the EPA or state permitting authorities to use the title V 
operating permit process to review the substance of decisions made 
during the title I (NSR) preconstruction permitting process. The 
statute requires that title V permits assure compliance with 
``applicable requirements'' of the CAA, but the statute does not define 
this term or expressly require that permitting authorities revisit NSR 
permitting decisions. The EPA interprets the statute to mean that the 
terms and conditions of a NSR permit issued under EPA-approved (or EPA-
promulgated) title I rules, with public notice and the opportunity for 
comment and judicial review, define the relevant NSR-related applicable 
requirements of the SIP (or FIP) for purposes of title V permitting.
    The EPA's interpretation is supported by the structure and purpose 
of title V. Congress designed title V to consolidate, assure compliance 
with, and improve the enforceability of applicable requirements 
established under other CAA programs. The title V program was not 
intended to create new substantive requirements or modify substantive 
requirements added in those other programs (other than to include 
supplemental compliance assurance measures, when necessary). This 
understanding of the purpose of title V--both in general and as it 
relates to the intersection of title V and NSR permitting--is reflected 
in the statute and regulations, the legislative history, EPA statements 
contemporaneous with the promulgation of the initial title V 
regulations, and various federal court decisions and EPA statements 
since that time.
    The EPA's interpretation is also consistent with the structure of 
the CAA as a whole. The EPA's current (and proposed) approach gives 
weight to the title I mechanisms that Congress provided to establish 
the specific NSR-related requirements of SIPs, as well as the title I 
and title III procedures for evaluating, challenging, and enforcing 
title I permitting requirements. It also respects the system of 
cooperative federalism reflected in the NSR and title V permitting 
programs.
    The EPA's current (and proposed) approach also reflects better 
policy than alternative interpretations because it: ensures that 
applicable requirements established in different CAA programs are 
treated consistently in title V permitting; better accounts for 
procedural, resource-related, and practical limitations associated with 
title V oversight tools; incentivizes the use of robust title I avenues 
of review; and respects the finality of NSR permitting decisions.
1. Statutory Text and Interpretation
    The text of title V alone does not conclusively define the scope of 
issues subject to review (or re-review) during the title V permitting 
process. In relevant part, the CAA requires that title V permits 
``include enforceable emissions limitations and standards . . . and 
such other conditions as are necessary to assure compliance with 
applicable requirements of [the CAA], including the requirements of the 
applicable implementation plan,'' i.e., the SIP or FIP. 42 U.S.C. 
7661c(a). Similarly, if the EPA determines that a title V permit is 
``not in compliance with the applicable requirements of [the CAA], 
including the requirements of an applicable implementation plan,'' the 
EPA must object, and if the EPA does not, any person may petition the 
EPA to do so. 42 U.S.C. 7661d(b)(1)-(2).\121\

[[Page 1175]]

However, the term ``applicable requirements'' is not defined in the 
Act, and the statute does not otherwise specify how to determine the 
applicable requirements of the CAA or the SIP (or FIP) for a particular 
source.
---------------------------------------------------------------------------

    \121\ Similar requirements appear in other parts of title V. For 
example: ``The term `schedule of compliance' means a schedule of 
remedial measures, including an enforceable sequence of actions or 
operations, leading to compliance with an applicable implementation 
plan, emission standard, emission limitation, or emission 
prohibition.'' 42 U.S.C. 7661(3). ``Nothing in this subsection shall 
be construed to alter the applicable requirements of this chapter 
that a permit be obtained before construction or modification.'' 42 
U.S.C. 7661a(a). Permitting authorities ``have adequate authority to 
. . . issue permits and assure compliance . . . with each applicable 
standard, regulation, or requirement under this chapter.'' 42 U.S.C. 
7661a(b)(5). The regulations to implement the program shall include 
a ``requirement that the applicant submit with the application a 
compliance plan describing how the source will comply with all 
applicable requirements under this chapter.'' 42 U.S.C. 7661b(b). 
However, like section 504, these sections do not specify the scope 
of the term ``applicable requirements'' or how the permitting 
authority or the EPA is to determine what the applicable 
requirements are for an individual source as part of its title V 
permit.
---------------------------------------------------------------------------

    With respect to title I preconstruction permits, the statutory term 
``applicable requirements'' is particularly ambiguous. As explained 
further in section IV.E.3.a. of this preamble, during the 
preconstruction permitting process, permitting authorities determine 
which NSR requirements in the SIP (or FIP) are applicable (e.g., major 
NSR or minor NSR requirements) to new or modified sources, and derive 
the specific permit conditions (e.g., emission limitations and other 
standards) applicable to a given source or modification based on the 
general direction in the SIP. The public has the opportunity to provide 
comment on draft permits and also to seek review in state court. At the 
end of this NSR permitting process, the NSR permit terms reflect the 
NSR-related requirements of the SIP (or FIP) applicable to the new or 
modified source.
    The question, then, is whether the title V permitting process 
should be used to double-check--and re-check during every subsequent 
title V renewal permit--the substantive adequacy of applicable 
requirements established through NSR permitting decisions. In other 
words, the question is whether title V should be used to assess whether 
the requirements embodied in an NSR permit were properly derived from 
the general, overarching SIP (or FIP) provisions governing NSR.
    Title V of the CAA contains no language expressly mandating such a 
re-evaluation through title V. Notably, the Fifth Circuit found the 
CAA's silence on this topic a persuasive reason for upholding the EPA 
interpretation that is the basis for this proposed rule. Env't 
Integrity Project, 960 F.3d at 248-49.\122\ The statute's silence on 
this topic stands in contrast to the presence of more specific 
statutory mandates, such as the requirement that title V permits be 
used to add compliance assurance measures like monitoring, 
recordkeeping, and reporting requirements. 42 U.S.C. 7661c(c); see 40 
CFR 70.6(c)(1); Sierra Club v. EPA, 536 F.3d at 680.
---------------------------------------------------------------------------

    \122\ Specifically, the court stated the following: ``We find 
persuasive EPA's position that Title V lacks a specific textual 
mandate requiring the agency to revisit the Title I adequacy of 
preconstruction permits. Our own review of Title V confirms that it 
contains no such explicit requirement, nor any language guiding the 
agency on how to perform a review of that nature. The principle that 
a matter not covered is not covered is so obvious that it seems 
absurd to recite it. A number of cases have identified the casus 
omissus pro omisso habendus est canon, under which a statute should 
not be read to include matter it does not include. Here, Title V 
does not tell EPA to reconsider [NSR] in the course of Title V 
permitting. We reject Petitioners' position because there is a basic 
difference between filling a gap left by Congress' silence and 
rewriting rules that Congress has affirmatively and specifically 
enacted.'' Env't Integrity Project, 960 F.3d at 248-49 (cleaned up) 
(citing Lamie v. U.S. Tr., 540 U.S. 526, 538 (2004); Iselin v. 
United States, 270 U.S. 245, 251 (1926); Yates v. Collier, 868 F.3d 
354, 369 (5th Cir. 2017); In re Miller, 570 F.3d 633, 638-39 (5th 
Cir. 2009)).
---------------------------------------------------------------------------

    Moreover, the CAA's references to ``applicable requirements'' do 
not compel such a re-evaluation. Notably, the Fifth Circuit rejected 
the notion that this general term should be construed as ``broad and 
sweeping,'' or that this term should be read to mandate using title V 
to review of whether requirements in an NSR permit accurately reflect 
the requirements of a SIP. See Env't Integrity Project, 960 F.3d at 
249-250 (``[Petitioners] would effectively rewrite the clause to read: 
`a de novo reconsideration of the source's preconstruction permitting.' 
Surely, Congress would not have hidden that regulatory elephant in this 
residual mousehole.'').
    In light of the statute's ambiguity, the EPA has adopted an 
interpretation of the statutory terms ``applicable requirements'' and 
``requirements of the applicable implementation plan.'' \123\ The EPA's 
interpretation is that the terms and conditions of an NSR permit issued 
under EPA-approved (or EPA-promulgated) title I rules, with public 
notice and the opportunity for comment and judicial review, define the 
relevant set of ``applicable requirements'' for purposes of title V 
permitting. That is, the ``requirements of an applicable implementation 
plan'' relevant to a particular construction project are the 
requirements that the permitting authority determined to be applicable 
during the NSR permitting process, as reflected in the terms of such an 
NSR permit. Not only is this interpretation consistent with the 
statutory text, but the EPA also considers this to be the best 
interpretation in light of the structure and purpose of title V, the 
structure of the CAA as a whole, and other policy reasons, as explained 
in the following subsections of this preamble.
---------------------------------------------------------------------------

    \123\ This interpretation is reflected, in part, in the EPA's 
existing regulations. 40 CFR 70.2, 71.2. These existing regulations 
can be read to support the statutory interpretation explained in 
this preamble. However, in light of the Tenth Circuit's ruling 
(which held that the EPA's regulatory definition of ``applicable 
requirement'' precluded the EPA's approach), the EPA is proposing to 
amend the EPA's regulations to more clearly reflect the EPA's 
statutory interpretation. For further discussion of the EPA's 
interpretation of its existing regulations, see Big River Steel 
Order at 9-11.
---------------------------------------------------------------------------

2. Structure and Purpose of Title V
    The EPA's interpretation of ``applicable requirements'' in the 
context of title V and NSR permitting is supported by the structure and 
purpose of the title V program--namely, to consolidate, assure 
compliance with, and improve the enforceability of applicable 
requirements established under other CAA programs. The title V program 
was not intended to establish new substantive requirements or modify 
substantive requirements created in other programs (other than to 
include supplemental compliance assurance measures, when necessary). 
This purpose is reflected in the statute and regulations, the 
legislative history associated with Congress's enactment of title V, 
EPA statements contemporaneous with the promulgation of the initial 
title V regulations, and various federal court decisions and EPA 
statements since that time.
    As introduced in section III.B. of this preamble, a core purpose 
and function of title V is to identify, consolidate, and assure 
compliance with the requirements applicable to individual sources from 
other, more substantive CAA programs. This function is embodied 
primarily within CAA section 504 and 40 CFR 70.6(a) and (c), which 
generally require that title V permits include conditions that assure 
an individual source's compliance with all CAA applicable requirements.
    When Congress enacted title V in 1990, it explained this purpose as 
follows:

    The first benefit of the title V permit program is that . . . it 
will clarify and make more readily enforceable a source's pollution 
control requirements. Currently, in many cases, the source's 
pollution control obligations . . . are scattered throughout 
numerous, often hard-to-find provisions of the SIP or other Federal 
regulations. . . . The air permit program will ensure that all of a 
source's obligations . . . will be contained in one permit document.

S. Rep. No. 101-228 at 347 (Dec. 20, 1989), reprinted in 5 Legislative 
History of the Clean Air Act Amendments of 1990 (CAA Legislative 
History) at 8687 (1998).\124\
---------------------------------------------------------------------------

    \124\ Other portions of the history of this legislation describe 
the purpose of title V in similar terms. See, e.g., Conf. Rep. on S. 
1630, Speech of Rep. Michael Bilirakis (Oct. 26, 1990), 6 CAA 
Legislative History at 10768 (1998).

    In addition to identifying and consolidating existing requirements

[[Page 1176]]

applicable to a source, CAA section 504 provides the authority to use 
title V permits to establish additional requirements relating to 
compliance assurance. For example, it is well-established that title V 
permits may be used to create or supplement monitoring requirements 
when necessary to assure an individual source's compliance with 
underlying applicable requirements that do not themselves contain 
sufficient monitoring provisions.\125\ This exception proves the rule; 
where Congress intended title V to serve as a vehicle for the 
reevaluation of existing requirements or for imposing new requirements, 
it expressly said so.
---------------------------------------------------------------------------

    \125\ See 42 U.S.C. 7661c(c); 40 CFR 70.6(c)(1); Sierra Club v. 
EPA, 536 F.3d 673, 674-45, 680 (D.C. Cir. 2008) (``Title V did more 
than require the compilation in a single document of existing 
applicable emission limits and monitoring requirements. It also 
mandated that `[e]ach permit issued under [Title V] shall set forth 
. . . monitoring . . . requirements to assure compliance with the 
permit terms and conditions.' . . . [T]he Act requires: a permitting 
authority may supplement an inadequate monitoring requirement so 
that the requirement will `assure compliance with the permit terms 
and conditions.' '' (citations omitted)); see also, e.g., In the 
Matter of CITGO Refining and Chemicals Co., L.P., West Plant, Order 
on Petition No. VI-2007-01 at 6-8 (May 28, 2009). This additional 
purpose is similarly reflected in the legislative history. See, 
e.g., S. Rep. No. 101-228 at 347, 5 CAA Legislative History at 8687. 
Various compliance assurance requirements are included within title 
V and the EPA's implementing regulations; not all are restricted to 
monitoring. See 42 U.S.C. 7661c(a), (b), (c); 40 CFR 70.6(a)(1), 
(a)(3), (c), 71.6(a)(1), (a)(3), (c); see also, e.g., In the Matter 
of Suncor Energy (U.S.A.), Inc., Commerce City Refinery, Plant 2 
(East), Order on Petition Nos. VIII-2022-13 & VIII-2022-14 at 13-17 
(July 31, 2023).
---------------------------------------------------------------------------

    Beyond title V's consolidation and compliance assurance functions, 
it is axiomatic that title V generally does not impose new pollution 
control requirements on sources or provide a vehicle to modify such 
requirements established under other CAA programs. As stated in the 
congressional record:

    The permit provisions of title V provide a focus for this 
harmonization [of other titles of the CAA], although title V does 
not change, and gives EPA no authority to modify, the substantive 
provisions of these other titles. . . . [T]itle V does not change, 
and gives EPA no authority to modify, the substantive provisions of 
these other titles. . . . Title V creates no new substantive 
emission control requirements. Nothing in the permitting title 
should be read to increase the stringency of any control requirement 
nor to delay or accelerate the effectiveness of such requirements, 
except as expressly provided in titles I, III, and IV.

Conf. Rep. on S. 1630, Speech of Rep. Michael Bilirakis (Oct. 26, 
1990), 6 CAA Legislative History at 10768 (1998).

    Recognizing the core functions of the title V program, the EPA's 
regulations have provided since 1992: ``All sources subject to these 
regulations shall have a permit to operate that assures compliance by 
the source with all applicable requirements. While title V does not 
impose substantive new requirements, it does require that fees be 
imposed on sources and that certain procedural measures be adopted 
especially with respect to compliance.'' 40 CFR 70.1(b) (emphasis 
added). These principles are further explained in EPA statements 
contemporaneous with the initial 1992 title V regulations,\126\ 
subsequent rulemakings,\127\ and in numerous orders responding to 
petitions challenging individual title V permits.\128\ Likewise, 
federal courts across the nation have acknowledged and reiterated these 
general principles.\129\
---------------------------------------------------------------------------

    \126\ See 57 FR at 32251 (``While title V generally does not 
impose substantive new requirements, it does require that . . . 
certain procedural measures be followed, especially with respect to 
determining compliance with underlying applicable requirements. The 
program will generally clarify, in a single document, which 
requirements apply to a source and, thus, should enhance compliance 
with the requirements of the Act. . . . The title V permit program 
will enable the source, States, EPA, and the public to understand 
better the requirements to which the source is subject, and whether 
the source is meeting those requirements. Increased source 
accountability and better enforcement should result.''); id. at 
32284 (``As discussed above, title V is primarily procedural, and is 
not generally intended to create any new substantive requirements. . 
. . The title V permit is intended to record in a single document 
the substantive requirements derived from elsewhere in the Act. 
Therefore, in most cases the only emissions limits contained in the 
permit will be emissions limits that are imposed to comply with the 
substantive requirements of the Act (including SIP 
requirements).'').
    \127\ See 81 FR 57822, 57826-27 (Aug. 24, 2016) (``For the most 
part, title V of the CAA does not impose new pollution control 
requirements on sources. The definition of `applicable requirements' 
in the part 70 regulations includes many standards and requirements 
that are established through other CAA programs, such as standards 
and requirements under sections 111 and 112 of the Act, and terms 
and conditions of preconstruction permits issued under the New 
Source Review programs. 40 CFR 70.2. Once those air quality control 
requirements are established in those other programs, they are 
incorporated into a source's title V permits as appropriate. . . . 
[I]n providing an opportunity for harmonization through title V of 
the CAA, Congress did not replace or remove the procedures and 
requirements for establishing substantive requirements that exist in 
other provisions of the CAA.'').
    \128\ Hundreds of EPA petition orders include background 
discussion reiterating this core function of title V. Electronic 
copies of these orders are available on the EPA's public database, 
https://www.epa.gov/title-v-operating-permits/title-v-petition-database. To the extent individual petition orders contain 
particularly relevant discussion, they are discussed elsewhere in 
this preamble.
    \129\ See, e.g., Utility Air Reg. Group v. EPA, 573 U.S. 302, 
309 (2014) (``Unlike the PSD program, Title V generally does not 
impose any substantive pollution-control requirements.''); Env't 
Integrity Project, 960 F. 3d at 250 (``By all accounts, Title V's 
purpose was to simplify and streamline sources' compliance with the 
Act's substantive requirements. Rather than subject sources to new 
substantive requirements--or new methods of reviewing old 
requirements--the intent of Title V was to consolidate into a single 
document (the operating permit) all of the clean air requirements 
applicable to a particular source of air pollution.'' (cleaned up)); 
id. at 244; see also, e.g., U.S. Sugar Corp. v. EPA, 830 F.3d 579, 
597 (D.C. Cir. 2016); US v. EME Homer City Generation, LP, 727 F. 3d 
274, 280 (3rd Cir. 2013); Sierra Club v. Johnson, 541 F.3d 1257, 
1260 (11th Cir. 2008); Sierra Club v. Leavitt, 368 F.3d 1300, 1302 
(11th Cir. 2004); Appalachian Power Co. v. EPA, 208 F. 3d 1015, 
1026-27 (D.C. Cir. 2000).
---------------------------------------------------------------------------

    Not only were these general principles well-established at the 
inception of the title V program, but both Congress and the EPA 
specifically spoke to the manner in which these general principles 
would guide the interaction between title V and title I permitting 
programs. For example, a Senate Report accompanying title V explained:

    New and modified major sources are already required to obtain 
construction permits under the [NSR] and [PSD] provisions of the 
current Act. EPA should avoid imposing additional construction 
permit requirements under title V. Thus, construction permits may 
continue to be issued under the existing provisions of the Act, but 
title V will apply with respect to existing source requirements not 
otherwise required in the construction permit, e.g., fees.

S. Rep. No. 101-228 at 349, 5 CAA Legislative History at 8689 (emphasis 
added).\130\ Thus, the legislative history articulates Congress's 
intent that, notwithstanding the enactment of title V, NSR permits 
would continue to be issued as they had for over a decade. Title V 
permits would be used to incorporate the requirements of NSR permits, 
but not to alter or impose additional NSR-related requirements.
---------------------------------------------------------------------------

    \130\ Similarly, one lawmaker involved in the statute's 
enactment explained: ``In the past, some provisions of the Clean Air 
Act--for example, the nonattainment and PSD new source 
requirements--were, and will continue to be, implemented through 
preconstruction permits.'' Conf. Rep. on S. 1630, Speech of Rep. 
Michael Bilirakis (Oct. 26, 1990), 6 CAA Legislative History at 
10768 (1998) (emphasis added).
---------------------------------------------------------------------------

    As previously noted, in the 1991 and 1992 preambles to the EPA's 
initial title V rules, the agency announced a similar understanding of 
the intersection of title V and title I permitting. The EPA did not 
express an intention to use the title V permitting process to review 
the applicable requirements established in preconstruction permitting 
programs under title I of the CAA. To the contrary, the EPA stated: 
``Any requirements established during the preconstruction review 
process also apply to the source for purposes of implementing title V. 
If the source meets the limits in its NSR permit, the title V operating 
permit would

[[Page 1177]]

incorporate these limits without further review.'' 56 FR 21712, 21738-
39 (May 10, 1991) (emphasis added). Similarly, the EPA explained: ``The 
intent of title V is not to second-guess the results of any State NSR 
program.'' Id. at 21739 (emphasis added). Further, ``Decisions made 
under the NSR and/or PSD programs (e.g., [BACT]) define applicable SIP 
requirements for the title V source and, if they are not otherwise 
changed, can be incorporated without further review into the operating 
permit for the source. The title V program is not intended to interfere 
in any way with the expeditious processing of new source permits.'' Id. 
at 21721 (emphasis added). The preamble to the final rule further 
confirms that ``[d]ecisions made under the NSR and/or PSD programs 
define certain applicable SIP requirements for the title V source.'' 57 
FR at 32259 (emphasis added).
    The EPA's contemporaneous interpretation of the statute (and the 
regulations implementing this statute), should be afforded great 
weight, as the Fifth Circuit acknowledged in Env't Integrity Project, 
960 F.3d at 251 (``We also agree with EPA that the language in part 
70's preamble is probative of Title V's purpose as a whole.'').\131\ 
Although the EPA departed from this interpretation during the 2000s, 
the EPA's return to this interpretation reflects a better construction 
of the statute and congressional intent.\132\ As the Fifth Circuit 
stated: ``We find persuasive EPA's view that, because Title V was not 
intended to add new substantive requirements to the Act, it should not 
be interpreted as Petitioners urge. . . . This goal, as EPA argues, is 
at cross-purposes with using the Title V process to reevaluate 
preconstruction permits.'' Id. at 250-51.
---------------------------------------------------------------------------

    \131\ An agency's contemporaneous interpretation is often given 
great weight in understanding the meaning of a statute. See e.g., 
Good Samaritan Hosp. v. Shalala, 508 U.S. 402, 414 (1993) (``Of 
particular relevance is the agency's contemporaneous construction 
which `we have allowed . . . to carry the day against doubts that 
might exist from a reading of the bare words of a statute.' '' 
(quoting FHA v. The Darlington, Inc., 358 U.S. 84, 90 (1958))).
    \132\ See Env't Integrity Project, 960 F.3d at 251 (``We 
recognize that EPA has reverted to its original interpretation of 
Sec.  70.2, reflecting its changing views of Title V. We take the 
agency's change of position into account in determining whether to 
defer to its position. But even when `the agency has embraced a 
variety of approaches' we may still defer to its present position, 
`especially' when the current view `closely fits the design of the 
statute as a whole.' '' (quoting Shahala, 508 U.S. at 417-18; 
additional citation omitted)).
---------------------------------------------------------------------------

    Other statutory provisions within title V further support the EPA's 
interpretation. In enacting title V, Congress directed the EPA to 
``develop streamlined procedures in cases where the permit simply 
incorporates without changing[ ] existing requirements found in the SIP 
or in other provisions of the Act.'' S. Rep. No. 101-228 at 353, 5 CAA 
Legislative History at 8693. Reflecting this directive, title V 
requires state programs to have ``[a]dequate, streamlined, and 
reasonable procedures . . . for expeditious review of permit actions . 
. . .'' 42 U.S.C. 7661a(b)(6). Requiring a permitting authority, or the 
EPA, to go back and review final permitting decisions that have already 
been subject to the safeguards of public notice and judicial review 
would frustrate the goal of ``expeditious review of permit actions.''
    Similarly, Congress provided abbreviated timeframes for the EPA to 
review a proposed title V permit: 45 days for the EPA's independent 
review, and 60 days if confronted with a petition to object. 42 U.S.C. 
7661d(b); see 40 CFR 70.8(c), (d). Based on ``the abbreviated timeline 
Congress gave EPA,'' the Fifth Circuit in Env't Integrity Project 
concluded ``that these timelines are inconsistent with an in-depth and 
searching review of every permitting decision regarding a given 
source.'' Env't Integrity Project, 960 F.3d at 251.\133\ This point is 
compounded by the fact that title V permits must be renewed every 5 
years. 42 U.S.C. 7661a(b)(5)(B), (b)(6); see, e.g., 40 CFR 70.6(a)(2). 
As the Fifth Circuit stated, ``the fact that Title V permits must be 
renewed every 5 years tends to support the agency's view that Title V 
was not intended to serve as a vehicle for re-examining the underlying 
substance of preconstruction permits. Subjecting a source's 
preconstruction permit to periodic new scrutiny, without any changes to 
the source's pollution output, would be inconsistent with Title V's 
goal of giving sources more security in their ability to comply with 
the Act.'' Env't Integrity Project, 960 F.3d at 251-52.
---------------------------------------------------------------------------

    \133\ See also Env't Integrity Project, 960 F.3d at 253 (``Title 
I [includes] more detailed procedures for in-depth oversight of 
case-specific permitting decisions. Such permitting decisions follow 
state appeals or enforcement actions authorized by other provisions 
of the Act, including citizen suits under Title III. Those 
mechanisms are better structured to provide agency and citizen 
oversight of preconstruction permitting. . . . Title V contains none 
of the procedures that would guide those challenges, as Titles I and 
III do. . . . And those avenues provide more time for development 
and consideration of the potential issues.'' (internal citations and 
quotations omitted)).
---------------------------------------------------------------------------

    In summary, neither the structure of title V nor the congressional 
record indicate that Congress intended the EPA to reevaluate and 
rewrite substantive title I preconstruction requirements through the 
title V process. Title V was enacted largely to identify and 
consolidate the variety of requirements applicable to each facility and 
assure compliance with these requirements through provisions like 
monitoring, recordkeeping, and reporting. Reexamining title I permits 
through title V would not help address either of these objectives. 
Moreover, congressional intent for efficiency would be undermined if 
permitting authorities were required to second-guess complex decisions 
reflected in state-issued title I permits during title V review, and 
then re-check these decisions during each subsequent title V renewal. 
Such a review would also be generally incompatible with the limited 
timeframes that Congress provided for EPA's review of title V permits. 
These considerations related to the structure and purpose of title V 
align with the EPA's interpretations of the statute from the early 
1990s, as well as the opinions of federal courts.
    All indications of congressional intent suggest that the EPA's role 
in oversight over the issuance of title V permits should be limited. In 
the case of preconstruction permitting requirements derived from title 
I of the Act, the purpose of title V is to ensure that the terms and 
conditions of the preconstruction permit are properly included as 
``applicable requirements,'' and that the permit contains monitoring, 
recordkeeping, and reporting sufficient to assure compliance with those 
permit terms and conditions. See 42 U.S.C. 7661c(a), (c); 40 CFR 
70.6(a)(1), (a)(3), 70.6(c)(1).
3. Structure of the CAA as a Whole
    The EPA's interpretation of ``applicable requirements'' as that 
term relates to the interface of title I and title V permits is 
supported by the structure of the CAA as a whole. See Utility Air Reg. 
Group v. EPA, 573 U.S. 302, 320 (2014) (acknowledging the ``fundamental 
canon of statutory construction that the words of a statute must be 
read in their context and with a view to their place in the overall 
statutory scheme'' (internal citations and quotation marks omitted)). 
Specifically, the EPA's interpretation is consistent with the title I 
permitting mechanisms that Congress provided to establish and define 
the NSR-related requirements of SIPs; the title I and title III 
procedures for evaluating, challenging, and enforcing title I 
permitting requirements; and the overarching system of cooperative 
federalism reflected in the NSR and title V permitting programs.

[[Page 1178]]

a. Implementation of SIP Requirements Through Title I NSR Permits
    States must submit SIPs containing NSR permitting programs to EPA 
for approval. 42 U.S.C. 7410(a)(2)(C).\134\ States then determine and 
define the specific NSR-related requirements of SIPs that apply to 
individual construction projects by issuing NSR permits to individual 
facilities. This two-step process under title I is central to the EPA's 
interpretation of the statutory term ``applicable requirements'' as it 
relates to the interface between title I and title V permits. It also 
differentiates NSR-based applicable requirements from other types of 
applicable requirements.
---------------------------------------------------------------------------

    \134\ This section primarily discusses the issuance of NSR 
permits under an EPA-approved SIP. Similar principles apply to the 
issuance of NSR permits under an EPA-promulgated FIP.
---------------------------------------------------------------------------

    Section III. of this preamble discusses how different types of 
``applicable requirements'' are implemented to greater or lesser 
extents through title V permitting. In summary, some applicable 
requirements are self-implementing, in that the specific emission 
limitations or standards applicable to an individual source (or entire 
source category) are expressly identified within in the underlying 
regulation (e.g., a SIP, FIP, NSPS, or NESHAP regulation). These types 
of self-implementing requirements are incorporated into title V permits 
without further review, other than to ensure that the title V permit 
contains sufficient conditions to assure compliance with those 
requirements. By contrast, other CAA-based requirements may be written 
in more general terms, requiring additional steps to define the 
specific requirements that are applicable to a given facility. In some 
situations--such as where the underlying regulation contains no 
direction about the mechanism that must be used to further define such 
requirements--those requirements may be defined through the title V 
permitting process. NSR requirements are unique, as they fall between 
these two examples.
    The portions of a SIP addressing NSR are general in nature. SIPs 
require new and modified sources to obtain certain permits before 
beginning construction; SIPs specify thresholds and other methods to 
determine what type of permit a source must obtain; SIPs identify other 
preconditions to obtaining a permit (including requirements related to 
the NAAQS); and SIPs establish guidelines for establishing specific 
limitations and other conditions that must be included in a permit. 
Because the NSR-related provisions within a SIP are necessarily 
general, they are not self-implementing, and further fact-specific 
analysis is required to develop the specific requirements applicable to 
a particular new or modified source.
    The question then becomes: is title V the appropriate mechanism to 
establish (or revisit) the specific NSR-related SIP requirements that 
are applicable to construction activities at a particular source? As 
noted earlier, title V of the CAA does not mandate this outcome. And 
the structure of title I makes clear that this was not Congress's 
intent. Congress required in title I that SIPs regulate construction 
and require preconstruction permits. See, e.g., 42 U.S.C. 7475(a)(1), 
7502(c)(5); see 42 U.S.C. 7410(a)(2)(C).\135\ It thus follows that the 
preconstruction permitting requirements for individual sources are 
established under these programs in the SIP, not through title V. The 
SIPs identify the title I permitting process as the mechanism by which 
the more general SIP requirements applicable to construction of 
stationary sources will be defined for each new or modified source. 
During that title I permitting process, a permitting authority 
determines which NSR-related requirements of the SIP are applicable and 
designs specific permit terms and conditions to satisfy these more 
general SIP requirements. This process also includes the opportunity 
for the public to evaluate and challenge the state's decisions. 
Overall, the process is designed to result in an NSR permit that 
contains all terms and conditions necessary to satisfy the NSR-related 
requirements of the SIP. Thus, it is the title I permitting process--
not the general requirements within the SIP itself--that defines the 
``applicable requirements'' of the CAA related to NSR, at least insofar 
as title V is concerned.
---------------------------------------------------------------------------

    \135\ Although Congress did not specifically require that the 
minor NSR program be implemented through permitting, nearly all SIPs 
across the nation implement minor NSR through permitting. This 
distinction is not relevant to the approach proposed in this rule, 
because if a source does not obtain a title I permit to authorize 
construction, then there would be no permit to establish the 
``applicable requirements'' for title V purposes, and the EPA would 
review whether the title V permit assures compliance with the 
relevant requirements of the SIP. See section IV.B.5. of this 
preamble for further discussion.
---------------------------------------------------------------------------

    In summary, the NSR requirements of a SIP are not self-
implementing, but they also do not depend on the title V process to be 
defined. Instead, the applicable NSR-related requirements of SIPs are 
established through a dedicated title I-based mechanism with its own 
public participation opportunities and EPA oversight authority: the NSR 
permitting process.
    The CAA requires that title V permits assure compliance with 
``requirements of an applicable [SIP].'' But the CAA does not specify 
that title V be used to re-create or re-evaluate the requirements of 
the SIP that were already defined through the specific mechanism 
Congress designed to define them: the NSR permitting process. Again, 
the purpose of title V is not to create or alter the substantive 
requirements from other parts of the CAA, but instead to identify, 
consolidate, and assure compliance with those requirements established 
in these other programs that apply to each individual source.
b. Oversight of Title I Programs and Permitting Decisions
    The many programmatic and case-specific oversight tools contained 
within title I demonstrate that it is not necessary--and Congress did 
not intend--to use additional title V permit oversight tools to second-
guess the results of title I permitting decisions.\136\ As introduced 
in section IV.C.2. of this preamble, title I provides opportunities for 
programmatic oversight, oversight over individual permitting decisions, 
and oversight through enforcement.
---------------------------------------------------------------------------

    \136\ As stated in section IV.C. of this preamble, the EPA's 
view that reevaluation of NSR permits is not appropriate in the 
title V permitting context does not mean that the EPA agrees that 
the state reached the proper decision when setting terms and 
conditions of such an NSR permit, nor does it diminish the 
opportunities to review NSR preconstruction permitting decisions 
under title I of the CAA. See Env't Integrity Project, 960 F.3d at 
253.
---------------------------------------------------------------------------

    Through the review of SIP submissions, the EPA ensures that states 
have programs in place that provide the authority to issue 
substantively sound preconstruction permits, while respecting 
Congress's intended role for the states. Congress gave the EPA 
authority under title I to disapprove any proposed SIPs that are 
inconsistent with federal statutory and regulatory authorities 
governing NSR. 42 U.S.C. 7410(k). For example, if a state submits a 
proposed SIP containing rules to calculate major source emissions 
thresholds, and those rules are inconsistent with the CAA or its 
implementing regulations, the EPA cannot approve the SIP. Id. If the 
state's program subsequently fails to meet statutory or regulatory 
requirements related to NSR, the EPA can call for a revision of the 
SIP. 42 U.S.C. 7410(k)(5). Further, if a state fails to properly 
implement its NSR program, the EPA can take additional actions, 
including orders, administrative penalties, and civil actions. 42 
U.S.C. 7413(a)(2), (5).

[[Page 1179]]

The availability of these title I-based authorities obviates the need 
to use title V-based oversight tools to address programmatic issues 
associated with state NSR programs.
    In terms of reviewing individual title I permits, each SIP must 
provide for public notice and an opportunity for comment on proposed 
NSR permits in its preconstruction permit program. 42 U.S.C. 
7475(a)(2); 40 CFR 51.161; 51.165(i), 51.166(q). The EPA may provide 
feedback on state-issued NSR permits through this process.\137\ Thus, 
both the public and the EPA can seek to correct potential errors in 
proposed preconstruction permits, including threshold determinations 
about whether a source or modification is minor or major, and can also 
challenge the content of permit terms. Should a state permitting 
authority fail to address legitimate comments, either the public or the 
EPA can seek review of preconstruction permits in state administrative 
and judicial forums.\138\
---------------------------------------------------------------------------

    \137\ See supra note 113 and accompanying text.
    \138\ See supra note 114 and accompanying text.
---------------------------------------------------------------------------

    Congress also provided the EPA and the public with various 
enforcement mechanisms to address title I permitting issues on a 
facility-by-facility basis. The EPA possesses the authority to issue 
injunctive orders to halt construction. 42 U.S.C. 7413(a)(5)(A), 7477. 
The EPA may also pursue various types of civil or criminal enforcement 
actions pursuant to sections 113 and 167 of the Act. 42 U.S.C. 7413, 
7477. In title III of the CAA, Congress also provided authority for 
citizens to bring enforcement actions seeking civil penalties and 
injunctive relief against a source that has violated certain NSR 
requirements. 42 U.S.C. 7604(a)(1), (a)(3). The enforcement-based tools 
available to the EPA and members of the public can be used to ensure 
that decisions made in establishing the terms of a major NSR permit, 
such as BACT limits, were made on reasonable grounds properly supported 
by the record. See, e.g., Alaska Dep't of Env't Conservation v. EPA, 
540 U.S. 461 (2004). Additionally, they can be used to address 
situations where a source failed to obtain a required major NSR permit 
(even where it obtained a minor source permit). See, e.g., U.S. v. S. 
Ind. Gas & Elec. Co., No. IP99-1692-CM/F, 2002 WL 1760699, at *3-5 
(S.D. Ind. July 26, 2002); United States v. Ford Motor Co., 736 F. 
Supp. 1539, 1550 (W.D. Mo. 1990). These powerful enforcement tools 
enable the EPA and the public to directly correct the behavior of 
facilities that pursue illegal construction.
    Overall, the availability of title I oversight tools weighs against 
using title V oversight tools to address alleged defects with NSR 
permitting decisions. As the Fifth Circuit explained:

    EPA contrasts Title V's silence on this front with more 
stringent oversight authority provided in Title I, arguing that this 
supports reading the title V provision to supply a more limited 
oversight role for the EPA with regard to state implementation of 
preconstruction permitting programs. The agency explains that Title 
I is better geared for in-depth oversight of case-specific state 
permitting decisions such as through the state appeal process or an 
order or action under section[ ] 113 or section 167. And, the agency 
urges, the absence of such schemes in Title V shows Congress did not 
intend to recapitulate the Title I process in Title V. We find this 
reasoning persuasive.

Env't Integrity Project, 960 F.3d at 249 (internal quotations and 
citations omitted)). Further, these title I-based oversight tools are 
more effective than the more limited title V oversight tools. See 
section IV.E.4.b. of this preamble for further discussion of the 
practical considerations and other policy reasons why title V oversight 
tools are not well-suited to resolving complex NSR permitting issues.
c. Cooperative Federalism and Congressional Intent
    Congress, the EPA, and the courts have often described the CAA 
(like many other environmental statutes) as a program of cooperative 
federalism. See, e.g., 42 U.S.C. 7401(a)(3)-(4); Env't Integrity 
Project, 960 F.3d at 252. The EPA and the states work together to 
realize the goals of the CAA, but they have different roles. States 
have the ``primary responsibility'' for developing SIPs, 42 U.S.C. 
7407, as well as issuing title I permits under SIP programs.
    There is no indication that, in enacting title V, Congress intended 
to change the balance of state responsibility and federal oversight of 
title I permitting programs.\139\ To the contrary, the fact that 
Congress specifically provided a title I-based mechanism to establish 
the applicable NSR-related requirements, as well as title I- and title 
III-based tools for the EPA and citizens to oversee this program, 
weighs against using title V to re-evaluate, re-establish, or otherwise 
oversee those title I requirements. Congress ``does not alter the 
fundamental details of a regulatory scheme in vague terms or ancillary 
provisions--it does not, one might say, hide elephants in mouseholes.'' 
Whitman v. Am. Trucking Ass'ns, 531 U.S. 457, 468 (2001). A reading of 
title V that would transform it into an opportunity to reevaluate 
previous preconstruction approvals, instead of simply incorporating 
existing air pollution requirements into one document, would 
inappropriately ``alter the fundamental details'' of the oversight 
authorities the EPA has under title I of the Act.
---------------------------------------------------------------------------

    \139\ In fact, as noted in section IV.E.2. of this preamble, the 
legislative history surrounding the 1990 CAA Amendments suggests 
that Congress did not intend for the title V program to change the 
implementation of title I permits.
---------------------------------------------------------------------------

    The text of the Act does not indicate that Congress intended to 
create this type of additional administrative oversight mechanism for 
preconstruction permitting actions in an operating permit program 
designed to consolidate and make existing requirements enforceable. 
While there is language in title V requiring that a permit ``assure 
compliance with applicable requirements of this chapter,'' e.g., 42 
U.S.C. 7661c(a), and similarly broad language in other parts of title 
V, this type of general language does not clearly or specifically say 
that a title V permitting authority must reevaluate preconstruction 
permitting decisions that have already been made under title I each 
time that it issues or renews a title V permit. Instead, this general 
language in the statute should be read to mean that the title V permit 
must include conditions to assure compliance with the terms and 
conditions of the source-specific preconstruction permits.
    In summary, as the Fifth Circuit concluded in its close examination 
of Title V:

    Beyond the structure of Title V, EPA also persuasively grounds 
its interpretation in the structure of the Act as a whole. According 
to EPA, when Congress added preconstruction permitting requirements 
to Title I in 1977, it understood that the adequacy of state 
preconstruction permitting decisions would be subject to review in 
state administrative and judicial forums. It gave EPA oversight 
authority over preconstruction permitting only in specific ways, to 
do specific things. For example, Congress delineated the processes 
EPA must go through to approve SIPs. When it enacted Title V 
thirteen years later, Congress granted EPA no such authority. 
Congress gave no clear indication that it intended to alter the 
balance of oversight EPA has over state permitting processes. 
Section 7661c(a)'s requirement that a Title V permit assure 
compliance with applicable requirements is general and broad and 
does not clearly or specifically require the revisiting of 
preconstruction permitting decisions. Once again, the elephants in 
mouseholes canon supports this reading.

Env't Integrity Project, 960 F.3d at 252 (cleaned up).

[[Page 1180]]

4. Policy Reasons
    In addition to the textual and legal interpretations supporting 
this action, several policy considerations also support this proposed 
rule. The EPA's current (and proposed) approach: ensures that 
applicable requirements established in different CAA programs are 
treated consistently in title V permitting; better accounts for 
procedural, resource-based, and practical limitations associated with 
title V oversight tools; incentivizes the use of proper title I avenues 
of review; and respects the finality of NSR permitting decisions.
a. Consistent Treatment of Applicable Requirements From Other CAA 
Programs
    The EPA's current (and proposed) approach aligns the EPA's 
treatment of preconstruction permits with how the EPA has consistently 
treated other ``applicable requirements'' under title V. As detailed in 
section III.E. of this preamble, for many other applicable 
requirements, permitting authorities do not reconsider the content of 
those requirements in title V permits, nor does the EPA in its 
oversight role of title V permitting. For instance, the EPA would not 
allow a permitting authority to revise the self-implementing 
substantive requirements of an NSPS established under CAA section 111 
or a NESHAP established under CAA section 112. Similarly, it would not 
be appropriate for the EPA to review or revise any self-implementing 
requirements of a SIP approved under CAA section 110. In fact, as 
explained in Section III.G of this preamble, even if the EPA disagrees 
with the content of a SIP, until the EPA approves a corrective SIP 
revision or issues a FIP, the SIP requirement remains an ``applicable 
requirement'' that should be incorporated unchanged into the title V 
permit.
    For purposes of establishing ``applicable requirements'' for title 
V permitting, it is logical and appropriate to treat decisions that go 
through similar processes similarly. Each of the applicable 
requirements addressed in the previous paragraph were established 
pursuant to a process that included public notice and the opportunity 
for comment and judicial review. Once they are established following 
these procedures, it would be inappropriate to reevaluate the substance 
of these requirements in title V permitting. Likewise, most source-
specific NSR permitting decisions must go through a similar process at 
the state level. Once established through the appropriate procedures, 
and unless and until the terms and conditions of an NSR permit are 
revised, reopened, suspended, revoked, reissued, terminated, augmented, 
or invalidated through some other mechanism (such as a state court 
appeal or enforcement action), the ``applicable requirements'' remain 
the terms and conditions of the issued NSR permit. These requirements 
should be incorporated into the title V permit without further review, 
just like all other similarly established applicable requirements.
    Any differences between NSR-based applicable requirements and other 
types of applicable requirements do not provide a convincing reason to 
treat NSR requirements differently. For example, the fact that NSR 
permits are reviewed through the state courts, as opposed to federal 
courts, is not material. As discussed in section IV.B.2. of this 
preamble, regardless of the jurisdiction involved, both processes are 
functionally similar and offer similar levels of public involvement and 
measured decisionmaking.\140\
---------------------------------------------------------------------------

    \140\ To the extent federal court review of NSR decisions offers 
independent value beyond that which may be achieved through state 
courts, the CAA specifically provides for various means by which the 
EPA or the public can raise NSR issues to federal courts. See 
sections IV.C.2. and IV.E.3.b. of this preamble for additional 
information.
---------------------------------------------------------------------------

    Additionally, as discussed in section IV.E.3.a. of this preamble, 
the NSR-related requirements of the SIP are often general and would not 
be described as ``self-implementing'' in the same manner as NSPS, 
NESHAP, or certain source-specific SIP requirements. However, after a 
source goes through the preconstruction permitting process and emerges 
with a final NSR permit, the terms of that NSR permit are legally 
effective in the same manner as any NSPS, NESHAP, or source-specific 
SIP provision. That is, those NSR permit terms are immediately 
applicable and enforceable and require no further substantive 
refinement through, for example, title V permitting.
    The EPA's current (and proposed) approach also standardizes the 
EPA's treatment of questions related to the applicability of different 
types of CAA requirements. Identifying which requirements apply to a 
source (i.e., which requirements must be included in the title V 
permit) is a key function of the title V permitting process. However, 
it is only necessary and appropriate to use title V to substantively 
address questions regarding applicability when such questions have not 
already been resolved by the underlying applicable requirement itself 
and when such questions require further site-specific factual analysis. 
For example, it would be appropriate to use the title V permitting 
process to determine whether--or which specific requirements within--a 
generally applicable NSPS, NESHAP, or SIP requirement applies to a 
particular source or piece of equipment, provided such a decision was 
not reflected in some other final action. Likewise, title V could be 
used to address whether a source should have obtained either a minor or 
major NSR permit where such a decision had not already been made 
following the appropriate title I permitting process.
    By contrast, if the applicability of a SIP requirement is 
established on the face of the SIP itself (e.g., in a source-specific 
SIP provision), the EPA would not re-evaluate this question through 
title V. Or, if the EPA has already issued a formal determination 
regarding the applicability of an NSPS or NESHAP standard, the EPA 
would not re-evaluate the same issues through title V.\141\ Provided a 
minor NSR permit has been issued following sufficient procedures, major 
NSR applicability questions are similar to the latter two examples. 
That is, where an NSR applicability determination has already been made 
through the title I process--where a state decides that major NSR does 
not apply to new or modified source and therefore issues a minor NSR 
permit--that applicability determination establishes the relevant 
requirements of the SIP that are applicable to the source or project. 
Any further action by EPA through title V would involve reconsidering 
that final title I action relevant to applicability. Moreover, if EPA 
were to conclude that major NSR requirements were applicable (as 
opposed to minor NSR requirements), such a determination would 
effectively require revising the substantive applicable requirements 
established in the final minor NSR permit (since major NSR requirements 
are generally more stringent than minor NSR requirements). Neither of 
these outcomes are consistent with how the EPA treats applicable 
requirements and applicability determinations under other CAA programs. 
Accordingly, the EPA considers it better policy to afford NSR 
applicability decisions the same finality as applicability decisions 
under other CAA programs.
---------------------------------------------------------------------------

    \141\ See supra note 32 and accompanying text.
---------------------------------------------------------------------------

b. Procedural, Resource-Based, and Other Practical Limitations of Title 
V Oversight Tools
    In the EPA's experience, NSR permitting issues are among the most

[[Page 1181]]

factually and legally complicated issues raised during the title V 
permitting (and petition) process. For multiple reasons, the oversight 
tools associated with title V permitting process are a poor fit for 
resolving NSR permitting issues. Compared to the available title I 
avenues for review, the title V process features limited timelines and 
procedural opportunities to fully evaluate complex title I issues. 
Reviewing complex NSR issues through title V involves a considerable 
resource burden and often is impracticable for decisions made years 
ago. Even where title V can be used to review NSR issues, the EPA's 
authority to resolve such issues is indirect, at best.
    Procedural constraints associated with title V oversight tools 
weigh against using these tools to resolve complex NSR issues. Congress 
provided the EPA with only 45 days to review proposed title V permits, 
followed by a 60-day period for the public to petition the EPA to 
object, followed by a 60-day period for the EPA to rule on a petition 
to object. 42 U.S.C. 7661d(b)(1)-(2). These brief title V review 
periods are inconsistent with an in-depth and searching review of 
potentially every source-specific preconstruction permitting decision 
that has been made by the permitting authority. By contrast, available 
title I review mechanisms--state court appeals and enforcement 
actions--are not subject to the same time constraints and allow more 
time for development and consideration of NSR permitting decisions.
    In addition to time constraints, the title V permitting and 
petition processes involve fewer opportunities to develop the factual 
record necessary for a complete review of complex NSR permitting 
issues. For example, by the time the EPA receives a title V petition, 
the EPA's review is generally limited to the record developed by the 
permitting authority up to that point. See 40 CFR 70.13. By contrast, 
some state permit appeal and enforcement processes provide more in-
depth oversight than title V could afford. Some states have 
administrative appeal processes that enable additional factual 
development before a final decision is reached on the permit. In 
addition, ``unlike the permitting process, the enforcement process 
allows for discovery, hearings, cross-examination of witnesses, and 
expert testimony,'' all of which aid the fact-finder in deciding 
whether major or minor source preconstruction requirements apply to a 
facility, or whether such requirements were correctly established. 
Citizens Against Ruining the Envt. v. EPA, 535 F.3d 670, 678 (7th Cir. 
2008).
    Moreover, once a title V petition is filed, there are no formal 
opportunities for other affected parties, such as the permitted source 
or the state permitting authority, to directly participate in the 
review process; their opportunity to develop their position occurs 
earlier in the permitting process. See 85 FR 6431, 6442 (February 5, 
2020). These other affected stakeholders have more procedural 
safeguards in state appeal processes and enforcement actions than in 
the title V petition process. For example, they may be parties to the 
action and appear before neutral arbiters, and have the opportunity to 
contest points raised by public challengers through briefs or other 
filings. Overall, title V oversight processes contain fewer mechanisms 
than title I oversight processes to fully consider and resolve complex 
NSR issues.\142\
---------------------------------------------------------------------------

    \142\ See Env't Integrity Project, 960 F.3d at 253 (``We are 
persuaded by the agency's contrasting Title V against Title I's more 
detailed procedures for in-depth oversight of case-specific 
permitting decisions. Such permitting decisions follow state appeals 
or enforcement actions authorized by other provisions of the Act, 
including citizen suits under Title III. Those mechanisms are better 
structured to provide agency and citizen oversight of 
preconstruction permitting. . . . Title V contains none of the 
procedures that would guide those challenges, as Titles I and III 
do. . . . And those avenues provide more time for development and 
consideration of the potential issues.'' (internal citations and 
quotations omitted)).
---------------------------------------------------------------------------

    Title V's limited effectiveness in addressing NSR issues is 
compounded by the fact that title V permits must be renewed every 5 
years. This fact, along with the EPA's longstanding position that all 
aspects of a title V permit are subject to review during renewal permit 
proceedings,\143\ gives rise to the possibility that, in the absence of 
the EPA's current (and proposed) approach, the public will seek to use 
title V oversight tools to review long-past NSR permit decisions. For 
example, in the 2016 PacifiCorp-Hunter I petition that precipitated the 
EPA's current interpretation, public interest groups challenged an NSR 
applicability decision made nearly 20 years prior. Given state and 
federal record retention schedules, staff turnover at state permitting 
authorities, and similar practical constraints associated with the 
passage of time, it may simply be impossible in a title V permitting 
action for a state to recreate a complete, defensible administrative 
record to support complex, substantive NSR permitting decisions, 
particularly those made long ago. Instead of pursuing challenges to NSR 
permitting decisions when a state incorporates a preconstruction permit 
into a title V permit, or during subsequent title V renewals, 
interested parties can obtain more direct and timely relief through 
state permit appeals and enforcement actions at the tile a title I 
permit is issued.
---------------------------------------------------------------------------

    \143\ See, e.g., In the Matter of Wisconsin Public Service 
Corporation, Weston Generating Station, Order on Petition No. V-
2006-4 at 5-7 (December 19, 2007).
---------------------------------------------------------------------------

    Some of the constraints on the EPA's and state's ability to address 
NSR issues through title V may be mitigated by the fact that Congress 
placed the burden on petitioners to demonstrate to the EPA's 
satisfaction that a title V permit does not satisfy the CAA. In other 
words, in the situations where NSR issues are properly within the scope 
of the EPA's title V review, the EPA is not required to undertake an 
exhaustive independent review of a state's NSR decisions. Instead, 
petitioners are required to provide sufficient evidence to EPA to 
demonstrate that the state's NSR permitting decisions did not comply 
with its SIP-approved regulations or that the state's exercise of 
discretion under such regulations was unreasonable or arbitrary.\144\ 
Although this demonstration requirement reduces some of the EPA's 
resource burdens, it places these burdens on the public, who are 
subject to similarly tight timelines and the other procedural 
limitations discussed in the preceding paragraphs. As a result of these 
constraints, combined with the complexity of NSR permitting decisions, 
it has historically been relatively uncommon for petitioners to 
successfully demonstrate that an NSR-related deficiency warrants the 
EPA's objection to a title V permit. As discussed throughout this 
preamble, the EPA believes the public would be better served to develop 
any challenges to NSR permitting decisions using title I avenues.
---------------------------------------------------------------------------

    \144\ See, e.g., Appleton Order at 5.
---------------------------------------------------------------------------

    Title V mechanisms are poorly suited not only for considering NSR-
related issues, but also for resolving NSR-related issues. The relief 
that the EPA can provide through title V to correct an NSR deficiency 
is limited and indirect. When the EPA objects to a title V permit on 
the grounds that NSR requirements were not properly established by a 
state, such objection does not directly invalidate an NSR permit or 
stop the initial construction or operation of a particular source 
authorized by an NSR permit. This is true not only when the NSR permit 
was issued long ago and construction has already been completed,\145\ 
but also when the NSR

[[Page 1182]]

permit was issued more recently and construction has not yet begun. An 
EPA objection similarly cannot directly require the state to amend an 
NSR permit. Instead, the EPA's authority to object to a title V permit 
reaches only the terms of the title V permit itself. For example, the 
EPA could direct a state to include a compliance schedule in the title 
V permit directing the source to apply for a new NSR permit. Resolving 
such an objection would generally require some type of additional, and 
legally distinct, NSR permitting action by the state permitting 
authority. If the state ultimately failed to update the title V permit 
in a manner sufficient to resolve the EPA's objection, then the EPA 
could then assume responsibility to issue the title V permit. 42 U.S.C. 
7661d(c).\146\ But even so, the EPA would remain unable to directly 
change the terms of the underlying NSR permit, or to issue a new NSR 
permit to the source, without first pursuing title I-based oversight 
authorities.\147\ Thus, no matter what the EPA might do with respect to 
a title V permit, the EPA lacks title V-based authority to directly 
intercede and fix issues in NSR permits. Thus, even in cases where the 
EPA entertained NSR-related claims in title V petitions, the resulting 
orders rarely resulted in a change to the NSR permit or additional NSR 
requirements.
---------------------------------------------------------------------------

    \145\ As explained previously, the EPA's regulations allow 
sources subject to major NSR preconstruction permitting requirements 
to apply for a title V permit within 1 year after beginning 
operation (well after beginning and completing construction), in 
most cases. 40 CFR 70.5(a)(1)(ii); 71.5(a)(1)(ii). The CAA similarly 
allows sources to apply for a title V permit up to 12 months after 
becoming subject to title V. 42 U.S.C. 7661b(c). This shows that 
Congress did not intend for the title V permitting process to be 
used to prevent the construction of a source authorized under title 
I.
    \146\ The EPA could also assume responsibility to issue title V 
permits within a jurisdiction after determining, for example, that 
the state failed to properly administer and enforce its title V 
program. See 42 U.S.C. 7661a(i)(4); 40 CFR 70.10(b)(4), (c), 
71.4(c).
    \147\ To directly mandate changes to an NSR permit issued by a 
state under an EPA-approved SIP, the EPA would need to pursue title 
I remedies. For example, a court order following a state court 
appeal, or an enforcement action, could directly mandate that the 
state permitting authority revise specific NSR permit terms or issue 
a different type of NSR permit. Alternatively, if the EPA wanted to 
directly issue an NSR permit to a source that was previously subject 
to a state permitting authority's jurisdiction, the EPA would first 
have to issue a ``SIP Call'' under CAA section 110(k) and ultimately 
impose a FIP, after which the EPA would retake the legal authority 
to issue NSR permits.
---------------------------------------------------------------------------

    Given that the title V oversight tools provide an ill-suited forum 
for considering and resolving the complex problems associated with NSR 
permitting, it makes sense that title V permitting authorities and the 
EPA should only consider whether the terms and conditions of an NSR 
permit have been properly included in a title V operating permit, and 
whether there is sufficient monitoring, recordkeeping, and reporting to 
assure compliance with those terms and conditions. It is more efficient 
for state permitting authorities, the public, and the EPA to focus on 
these core title V issues--which are more clearly redressable through 
title V oversight tools--when preparing title V permits, challenging 
title V permits, and reviewing title V permits.
c. Incentivizing Title I Avenues of Review
    The EPA's current (and proposed) approach not only recognizes the 
limitations on using title V to review NSR issues, but also emphasizes 
the importance of public involvement in the title I permitting process 
to address these issues. This approach encourages the public to engage 
contemporaneously at the state level to appeal preconstruction 
permitting decisions that they believe to be incorrect.
    As explained in the preceding subsection, the title I permitting 
process (and other oversight opportunities under titles I and III of 
the CAA) is better suited to addressing public concerns than the title 
V permitting process. From a policy standpoint, the EPA's view that the 
title V permitting process should not be used to reconsider final NSR 
permitting decisions relies heavily on the opportunity for the public 
to participate in the title I permitting process. The proposed 
revisions to the EPA's regulations include criteria relevant to public 
participation in the title I permitting process. Provided these 
criteria are satisfied in the issuance of a title I permit, NSR-related 
decisions associated with that permit would not be subject to further 
review through title V. The EPA expects that codifying this existing 
framework will create a strong incentive for state permitting 
authorities to ensure meaningful public access to NSR permitting 
actions, particularly for minor NSR permitting actions that may have 
limited public participation opportunities.\148\ This rulemaking is 
expected to complement related ongoing efforts by the EPA to promote 
increased implementation of existing requirements related to public 
participation in minor NSR permit actions.
---------------------------------------------------------------------------

    \148\ Similarly, the EPA expects that permittees will have an 
incentive to request that state permitting authorities provide such 
opportunities for the public to participate in the title I 
permitting process, so as to avoid the potential that title I 
permitting decisions will be subsequently overturned using the EPA's 
title V review authorities.
---------------------------------------------------------------------------

    This approach not only creates an incentive for states to offer 
more opportunities for public access in NSR permitting, but also for 
the public to use such processes. During the time period in which the 
EPA nominally considered the merits of NSR issues through the title V 
permitting and petition process, the EPA observed that many petitioners 
would only raise their NSR-related concerns through the title V process 
and would not seek relief through title I mechanisms. By doing this, 
citizens bypassed an available public participation opportunity and 
denied the state an opportunity to hear and remedy public concerns 
contemporaneous with the state action. Moreover, given the inherent 
difficulty in demonstrating NSR permit flaws and the lack of effective 
relief available through the title V permitting process, use of title V 
(rather than NSR appeal processes) may have ultimately been less 
effective at fostering sound NSR permitting decisions. The EPA believes 
it is better policy to encourage the public to use title I venues to 
address NSR-related concerns at the time these permits are issued, and 
to reserve the title V permitting process for issues that may be more 
effectively addressed through title V authorities (e.g., 
monitoring).\149\
---------------------------------------------------------------------------

    \149\ Of course, as explained in section IV.B.5.a. of this 
preamble, where the public is denied meaningful opportunities to 
participate in title I permitting decisions, title V will serve as a 
backstop to ensure that the public has an opportunity to ensure that 
a source's title V permit assures compliance with the relevant NSR-
related requirements.
---------------------------------------------------------------------------

d. Respecting Finality and Fostering Certainty in Title I Permitting 
Decisions
    Declining to review title I permitting decisions in title V review 
avoids duplication and inefficiency, respects the finality of NSR 
permitting decisions that are subject to public notice and the 
opportunity for comment and judicial review, and acknowledges regulated 
entities' need for certainty when investing in the construction and 
modification of sources.
    The availability of public notice, the opportunity for comment, and 
the opportunity for judicial review of underlying NSR permit actions 
weigh heavily against the need to repeat all these procedures through 
title V permitting. This allows an unnecessary and inefficient ``second 
bite at the apple,'' along with a potentially unlimited number of 
additional ``bites'' each time a title V permit is reviewed.

[[Page 1183]]

    The EPA's current (and proposed) approach respects the finality of 
a permitting authority's title I permitting decisions, provided such 
decisions were made with the requisite level of formality, 
consideration, and public process (i.e., issued under title I 
authorities following public notice and the opportunity for comment and 
judicial review). By contrast, allowing NSR permitting decisions to be 
collaterally attacked using the title V permitting process would 
significantly undermine the finality of state title I permitting 
decisions. This would decrease the relative importance of states in the 
cooperative federalist system established by Congress.
    The EPA believes that the best policy (and best reading of the Act 
as a whole, as described in section IV.E.3. of this preamble) is that 
the public should directly participate in state preconstruction 
permitting decisions and, if necessary, seek review in state court 
immediately thereafter. This is a more direct and timely way to 
identify and correct errors in preconstruction permits. It provides for 
such review before sources reasonably begin relying on those permits to 
invest substantial resources in a facility. Thus, the EPA's current 
(and proposed) approach fosters certainty and avoids upsetting settled 
expectations and reliance interests of sources that have obtained a 
legally enforceable preconstruction permit under title I. By contrast, 
under the EPA's former approach, stakeholders would always face the 
possibility that the EPA could identify errors with the state 
preconstruction permitting decisions during title V permit issuance or 
renewal. In such a circumstance, discovery of errors could come years 
after the fact, long after a source is constructed and operating, 
either when a title V permit first incorporates the relevant NSR 
requirements, or decades after the fact, when the title V permits is 
subsequently renewed.\150\ This would increase uncertainty for the 
regulated community. It would also increase the burden on EPA, state 
agencies, and the courts to consider such long-distant issues. As 
summarized by the Fifth Circuit in examining EPA's current approach:
---------------------------------------------------------------------------

    \150\ See section IV.B.4. of this preamble for additional 
information about the timing of NSR and title V permit actions.

    EPA's position also respects the finality of the preconstruction 
permitting decision. The agency reasoned that it would be 
inefficient to allow review via the Title V permitting process even 
after the preconstruction permits had been subject to public notice 
and comment and an opportunity for judicial review. And those 
avenues provide more time for development and consideration of the 
potential issues. We are persuaded that EPA's construction of Title 
V respects the finality of state preconstruction permitting 
decisions, which is consistent with the Act's cooperative 
federalism. Petitioners' contrary view of Title V would allow a 
federal agency to upset states' permitting decisions with no clear 
---------------------------------------------------------------------------
mandate from Congress to do so.

Env't Integrity Project, 960 F.3d at 253 (internal citations and 
quotations omitted).

F. Alternative Approaches

    The EPA believes that the agency's existing interpretations and 
policies reflect the best approach from both a legal and policy 
standpoint, for the reasons discussed previously. Thus, the EPA is 
proposing to codify its existing approach. However, the EPA also 
solicits comment on the following alternative approaches that would 
involve using title V permits to address substantive NSR issues in 
additional, targeted situations. Each of the alternatives presented 
features some level of intuitive appeal but also suffers from legal 
and/or policy drawbacks. Thus, the EPA specifically requests comments 
that would provide further legal and/or policy support for applying 
these alternatives as opposed to the EPA's preferred approach. The EPA 
also specifically requests comments on how such alternatives could be 
reflected in the regulatory text.
    As discussed in the following subsections, the alternatives that 
the EPA is considering include: (i) using title V to review 
contemporaneous or recent NSR permitting decisions; (ii) using title V 
to review issues related to major NSR applicability, and (iii) using 
title V to review contemporaneous or recent NSR permitting decisions 
related to major NSR applicability.
1. Using Title V To Review Contemporaneous or Recent NSR Permitting 
Decisions
    Under the first alternative approach, the title V permitting 
process could be used to review contemporaneous or recent NSR 
permitting decisions, but not older NSR permitting decisions.\151\ 
Within this alternative, there are multiple potential variations based 
on the time frame chosen to differentiate between NSR decisions that 
would, and would not, be reviewed. For example, the narrowest version 
of this alternative would involve using title V to review NSR-related 
decisions that are made contemporaneously with the issuance of a title 
V permit. Broader versions of this alternative would involve reviewing 
NSR permitting decisions finalized within a certain period of time 
before a title V permit is issued.
---------------------------------------------------------------------------

    \151\ This approach is similar to prior EPA statements that the 
EPA would not review NSR decisions made long ago. See supra notes 51 
and 56 and accompanying text.
---------------------------------------------------------------------------

    This alternative approach has some appeal because it avoids some of 
the practical challenges that motivated, and which support, the EPA's 
current approach. For example, this alternative would avoid problems 
associated with the EPA and states being expected to confront long-past 
NSR decisions without a fully accessible record. This alternative is 
also less likely to upset settled expectations, particularly if review 
is restricted to contemporaneously issued NSR and title V permits. 
However, this alternative would not address other important policy 
considerations to the same extent as the EPA's proposed approach. For 
example, this alternative would not address the limited scope and 
timing available for reviewing complex NSR issues through title V.
    Additionally, this alternative would give rise to its own set of 
problems. For example, reviewing NSR decisions based on a defined 
timing element would involve a difficult line-drawing exercise. Would 
it be appropriate to review only NSR decisions finalized at the exact 
same time as a title V permit issuance, or NSR decisions finalized 
shortly before a title V permit is finalized, or within the same year, 
or within five or six years, or some other period of time? The EPA 
solicits comments on how to define this timing element under this 
alternative.
    Moreover, to the extent this alternative would be applied narrowly 
to allow title V review of only contemporaneous NSR permitting 
decisions, this approach could disincentivize states from taking 
advantage of streamlined permit issuance procedures (which many states 
currently employ), such as the concurrent permit issuance process 
described in section IV.B.4. of this preamble. Disincentivizing 
streamlined permitting could increase administrative burdens and costs 
for states and could lead to unnecessary delays in title V permit 
issuance, counter to the CAA's directive to develop ``[a]dequate, 
streamlined, and reasonable procedures for expeditiously'' issuing 
permits. 42 U.S.C 7661a(b)(6).
    In addition to these policy considerations, it is not clear what 
legal basis would support an alternative approach based exclusively on 
the timing of NSR and title V permit issuance. As discussed extensively

[[Page 1184]]

earlier in this preamble, the relationship between NSR and title V 
permits is closely tied to the concept of ``applicable requirements'' 
that are established under other CAA programs. This concept has 
generally been time-neutral, such that requirements that are properly 
established under another EPA program--regardless of when they are 
established--define the applicable requirements that must be included 
in a title V permit. To the extent the EPA has addressed timing 
considerations, is has been to ensure that the definition of 
``applicable requirement'' is overinclusive with respect to 
requirements that have already been promulgated but are not yet 
effective. See 40 CFR 70.2 (definition of ``applicable requirement''). 
This alternative approach would require the opposite position, 
excluding recent NSR permitting decisions from establishing applicable 
requirements just because they were undertaken more recently. That 
position would conflict with the EPA's treatment of applicable 
requirements under all other types of CAA programs. It is not clear to 
the EPA that such an approach is compatible with the structure and 
purpose of the title V program.
    Further information explaining why the EPA does not prefer this 
alternative is included in section IV.B.4. of this preamble (which 
explains why the EPA's approach applies the same regardless of when an 
NSR permit was issued).
2. Using Title V To Review Issues Related to Major NSR Applicability
    The second alternative approach under consideration would involve 
using the title V permitting process to review issues related to major 
NSR applicability (i.e., whether a source should have received a major 
NSR permit instead of a minor NSR permit). However, the EPA would not 
review challenges to other types of substantive NSR issues (e.g., BACT 
determinations or the results of modeling). This alternative would 
apply the same regardless of the timing of NSR permit issuance and 
title V permit issuance.
    This alternative approach would provide some of the same policy 
benefits as the EPA's proposed approach, in that it would avoid using 
title V to reevaluate the content of NSR permits (e.g., whether permit 
limits correctly reflect BACT). However, given that major NSR 
applicability questions are among the most complicated NSR-related 
issues to address, this approach would do little to resolve the 
resource-related and practical problems that partly motivated the EPA's 
current (and proposed) approach. For the reasons discussed in section 
IV.E.4.b. of this preamble, the EPA does not consider the title V 
permitting process well-suited to resolving these complex questions 
involving major NSR applicability.
    One might argue that this alternative approach is consistent with 
the view that the title V process can be used to determine which 
requirements are applicable to a source, even if it should not be used 
to second-guess the content of such requirements.\152\ However, where 
an NSR applicability determination has already been made through the 
NSR process and a minor NSR permit is issued, any further action 
through title V related to major NSR applicability would likely require 
changes to emissions limits and other applicable requirements 
established through that NSR process. In other words, using title V to 
revisit NSR applicability questions would inherently upset not only the 
NSR applicability decisions, but also NSR permit content decisions. The 
EPA does not view this result as consistent with the key function of 
title V.
---------------------------------------------------------------------------

    \152\ This line of reasoning, based on certain statements made 
when the EPA promulgated the part 70 rules, featured in the Tenth 
Circuit's interpretation of the current regulatory definition of 
``applicable requirement.'' See Sierra Club v. EPA, 964 F.3d at 893-
895.
---------------------------------------------------------------------------

    Further information explaining why the EPA does not prefer this 
alternative is included in section IV.B.3. of this preamble (which 
contains the EPA's justification for applying its approach uniformly 
regardless of the type of substantive NSR requirements at issue) and 
section IV.E.4.a. of this preamble (which explains why the EPA's 
proposed approach is more consistent wih how applicability questions 
are treated with respect to other CAA programs).
3. Using Title V To Review Contemporaneous or Recent NSR Permitting 
Decisions Related to Major NSR Applicability
    The third and final alternative approach under consideration would 
involve using title V to review contemporaneous or recent NSR 
permitting decisions related to major NSR applicability, but not any 
older NSR decisions or any NSR decisions related to NSR permit content. 
This approach is a combination of the preceding two alternatives, and 
is consequently narrower than either two alternatives--that is, it 
would involve the use of title V to review NSR issues in fewer 
situations. See the preceding subsections for considerations relevant 
to this alternative.

V. The General Duty Clause Concerning the Prevention of Accidental 
Releases of Hazardous Substances

A. Background and Summary of Proposed Action

    On two occasions in recent years, the EPA received title V 
petitions requesting that individual title V permits include 
requirements designed to assure compliance with the ``General Duty 
Clause'' of CAA 112(r)(1), which concerns the prevention of accidental 
releases of hazardous substances. These petitions were premised upon 
the suggestion that the General Duty Clause is an ``applicable 
requirement'' for title V purposes. However, as the EPA explained in 
the Hazlehurst and Owens-Brockway Orders denying both of these 
petitions, the General Duty Clause is not an applicable requirement for 
title V.\153\ The basis for this position is fully explained in the 
EPA's Hazlehurst and Owens-Brockway Orders. However, for the sake of 
transparency, section V.B. of this preamble restates salient points 
from those orders.
---------------------------------------------------------------------------

    \153\ In the Matter of Owens-Brockway Glass Container Inc., 
Order on Petition No. X-2020-2 at 21-28 (May 10, 2021) (Owens-
Brockway Order); In the Matter of Hazlehurst Wood Pellets, LLC, 
Order on Petition No. IV-2020-5 at 7-14 (Dec. 31, 2020) (Hazlehurst 
Order).
---------------------------------------------------------------------------

    Moreover, although the current definition of ``applicable 
requirement'' in the EPA's part 70 and part 71 regulations may 
reasonably be read to exclude requirements of the General Duty Clause, 
the EPA intends to provide further clarity to the public by making this 
exclusion explicit in the EPA's regulations.
    This proposed change to the rules is not expected to have any 
impacts on state permitting authorities, regulated entities, the 
public, or other stakeholders, as it simply clarifies an element of the 
title V program that has been understood and implemented in the same 
way since the inception of the title V program in the early 1990s.
    This proposed change is distinct and severable from the proposed 
changes related to the interface between title V permits and NSR 
permits, discussed in section IV. of this preamble.

B. Rationale for Proposed Action

1. Statutory Provisions
    The General Duty Clause provides:

    The owners and operators of stationary sources producing, 
processing, handling or storing such substances have a general duty 
in the same manner and to the same extent as section 654 of title 29 
to identify hazards which may result from such releases using 
appropriate hazard assessment techniques, to design and maintain a 
safe facility taking

[[Page 1185]]

such steps as are necessary to prevent releases, and to minimize the 
consequences of accidental releases which do occur. For purposes of 
this paragraph, the provisions of section 7604 of this title shall 
not be available to any person or otherwise be construed to be 
applicable to this paragraph.

42 U.S.C. 7412(r)(1) (emphasis added). The last sentence contains a key 
limitation of the General Duty Clause: it means that citizen suits 
under CAA section 304 shall not be available to enforce the 
requirements of the General Duty Clause; instead, this clause may only 
be enforced by the EPA under CAA section 113.

    This enforcement prohibition also effectively restricts the 
implementation of the General Duty Clause requirements through title V 
permitting. The CAA provides that all standards and limitations in 
title V permits are enforceable by citizens under section 304.\154\ 
Thus, if the requirements of the General Duty Clause were included in 
title V permits, they would ostensibly be enforceable through 
enforcement of the title V permit itself. However, this would be in 
direct conflict with the unambiguous statutory prohibition on citizen 
enforcement of the General Duty Clause under section 304.\155\ To avoid 
this conflict, the General Duty Clause must not be considered an 
``applicable requirement'' that is implemented through title V 
permitting.
---------------------------------------------------------------------------

    \154\ This is because any person may, under CAA section 
304(a)(1), bring a suit ``against any person . . . who is alleged to 
have violated . . . or be in violation of (A) an emission standard 
or limitation under this chapter . . . .'' In turn, ``emission 
standard or limitation'' is defined to include, inter alia, ``any 
other standard, limitation, or schedule established under any permit 
issued pursuant to subchapter V of this chapter . . . .'' 42 U.S.C. 
7604(f)(4); see also 40 CFR 70.6(b)(1); see United States v. 
Gonzales, 520 U.S. 1, 5 (1997). As discussed later, the EPA's 
regulations contain a limited exception to this principle, which is 
not applicable to the General Duty Clause.
    \155\ The specific prohibition on enforcement of the General 
Duty Clause by citizen suit must govern over the general 
enforceability of title V permits. See Nitro-Lift Technologies 
L.L.C. v. Howard, 568 U.S. 17, 21 (2012).
---------------------------------------------------------------------------

    Other text within the General Duty Clause further evinces 
congressional intent that the General Duty Clause would not be 
implemented through permitting. The statute indicates that the CAA 
section 112(r)(1) general duty shall be ``in the same manner and to the 
same extent as section 654 of title 29''--that is, the general duty 
clause within the Occupational Safety and Health Act (OSH Act). The OSH 
Act provision, enacted in 1970, is not implemented through site-
specific permits, nor are citizen suits authorized to enforce it. See 
generally 29 U.S.C. 651-678. If Congress had intended the CAA General 
Duty clause to be implemented in a fundamentally different manner than 
the OSH Act provision on which it was explicitly modeled--e.g., through 
a permitting program that could be enforced by citizens--it could have 
specifically said so. However, instead, Congress precluded citizen 
enforcement under the CAA General Duty Clause, and nowhere did Congress 
imply that it would be implemented through permitting.
    Additionally, the CAA requires that states have the authority to 
enforce title V permits in order to receive EPA approval of their 
permitting programs. 42 U.S.C. 7661a(b)(5); see also 40 CFR 70.4(b)(3). 
However, the CAA General Duty Clause is enforceable only by the federal 
government. The EPA has not delegated authority to implement or enforce 
the General Duty Clause to state or local air agencies.\156\ Were the 
requirements of the General Duty Clause considered ``applicable 
requirements'' to be included within individual title V permits, states 
would be unable to enforce these new permit provisions, which would 
contradict CAA section 502(b)(5). This would mean that all state and 
local title V programs would be fundamentally flawed--an absurd result 
Congress could not have intended.
---------------------------------------------------------------------------

    \156\ Because CAA section 304 is the only federal authority 
through which citizens and state or local air agencies could enforce 
this type of CAA requirement, neither citizens nor state and local 
air agencies may enforce the General Duty Clause under the CAA. 
Additionally, some states are prohibited by state law from having 
general duty authorities. 58 FR 62262, 62278 (Nov. 26, 1993).
---------------------------------------------------------------------------

    Notably, each of the relevant statutory provisions discussed 
earlier--the General Duty Clause of section 112(r)(1), the relevant 
portion of section 304 authorizing citizen suits to enforce title V 
permit terms, and the entirety of title V--were promulgated in the same 
legislative package: the 1990 CAA Amendments. Accordingly, the 
statutory conflict between these provisions is best understood as 
reflecting an intentional choice by Congress to fundamentally 
distinguish the General Duty Clause in section 112(r)(1) from other CAA 
requirements that would be implemented through the title V permitting 
program.\157\
---------------------------------------------------------------------------

    \157\ See Maracich v. Spears, 570 U.S. 48, 65 (2013) (``It is 
necessary and required that an interpretation of a phrase of 
uncertain reach is not confined to a single sentence when the text 
of the whole statute gives instruction as to its meaning.''); see 
also Erlenbaugh v. United States, 409 U.S. 239, 243-45 (1972) (``[In 
pari materia] is but a logical extension of the principle that 
individual sections of a single statute should be construed together 
. . . . [T]he rule's application certainly makes the most sense when 
the statutes were enacted by the same legislative body at the same 
time.''); United States v. Ron Pair Enterprises, 489 U.S. 235, 242 
(1989) (``The plain meaning of legislation should be conclusive, 
except in the rare cases in which the literal application of a 
statute will produce a result demonstrably at odds with the 
intentions of its drafters.'' (internal quotation omitted)).
---------------------------------------------------------------------------

2. Regulatory Provisions
    Following the statutory text, the EPA's regulations provide: ``All 
terms and conditions in a part 70 permit . . . are enforceable by the 
Administrator and citizens under the Act.'' 40 CFR 70.6(b)(1).\158\ 
Additionally, in order to be approvable by the EPA, state programs 
under part 70 must demonstrate authority to enforce permits. 40 CFR 
70.4(b)(3)(vii). Neither of these regulatory requirements are 
compatible with the view that the General Duty Clause--which is 
enforceable only by the EPA--should be included in title V permits.
---------------------------------------------------------------------------

    \158\ This principle is subject to one exception: certain terms 
in a title V permit that are not based on the CAA may be labeled as 
``state-only'' requirements that are not federally enforceable or 
enforceable by citizens through section 304. 40 CFR 70.6(b)(2). The 
General Duty Clause, which is contained within the CAA, is not 
eligible for this treatment. Beyond this limited exception, neither 
the statute nor regulations contemplate other means by which the 
enforceability of title V permit terms could be restricted in a 
manner consistent with the limitations in the General Duty Clause 
discussed earlier.
---------------------------------------------------------------------------

    The EPA must read its regulations in a manner consistent with the 
statute. As explained in the Hazlehurst and Owens-Brockway petition 
orders, the existing definition of ``applicable requirement'' can 
reasonably be read to exclude the General Duty Clause of CAA section 
112(r)(1).\159\ Nonetheless, in order to provide maximum clarity to the 
public, the EPA is proposing to revise the definition of ``applicable 
requirement'' in 40 CFR 70.1 and 71.2 to make this more explicit.
---------------------------------------------------------------------------

    \159\ See Hazlehurst Order at 9-10; Owens-Brockway Order at 23-
24.
---------------------------------------------------------------------------

3. EPA Guidance and Implementation
    Excluding the General Duty Clause from the regulatory definition of 
``applicable requirement'' is consistent with how the EPA has described 
and implemented both the title V and 112(r) programs since their 
inception in the early 1990s.\160\ In various rulemaking actions, the 
EPA has consistently indicated that the only applicable requirements 
related to 112(r) that need to be satisfied through title V are those 
related to section 112(r)(7) risk management plans under 40 CFR part 
68. See, e.g., 57 FR at 32275-76; 60 FR 13526, 13526, 13535-36 (Mar. 
13, 1995); 61 FR 31668, 31688-89 (June 20,

[[Page 1186]]

1996).\161\ The EPA has made similar determinations in early title V 
petition orders. For example, in the 1997 Shintech I Order, the EPA 
concluded that ``compliance with the provisions of 40 CFR 68.215 . . . 
is sufficient to satisfy the legal obligations of section 112(r) for 
purposes of part 70.'' \162\ The EPA therefore specifically rejected 
the petitioners' request for additional permit terms related to section 
112(r)(l), while noting the independent enforceability of the General 
Duty Clause.\163\ These principles hold true regardless of whether a 
source is subject to risk management plan requirements under part 68. 
For example, in the 2001 Pencor-Masada I Order, the EPA applied similar 
principles to a source that was not subject to part 68. There, the EPA 
reiterated that a source's obligations under the General Duty Clause 
are unaffected by compliance with part 68 or the terms of a source's 
title V permit.\164\ The EPA has made similar statements concerning 
title V and CAA section 112(r) in other guidance documents.\165\
---------------------------------------------------------------------------

    \160\ The EPA understands that most, and perhaps all, permitting 
authorities implementing part 70 programs have historically followed 
the same view.
    \161\ This proposed rule does not affect the risk management 
plan program under section 112(r)(7) or part 68 in any way. However, 
the limited intersection between section 112(r)(7) risk management 
plans and title V permits provides context for the EPA's position on 
the section 112(r)(1) General Duty Clause. The EPA has, through 
rulemaking, limited the extent to which even the 112(r)(7)-related 
``applicable requirements'' would be implemented through title V. 
Specifically, when the EPA promulgated the final part 68 risk 
management plan rules in 1996, the agency determined that ``generic 
terms in [title V] permits and certain minimal oversight 
activities'' would assure compliance with risk management plan 
requirements. 61 FR at 31689; see also 57 FR at 32275 (``The EPA 
recognizes, however, that an RMP is not in any sense a `permit' to 
release substances addressed therein, and that section 112(r) was 
not intended to be primarily implemented or enforced through title 
V.'' (citing 42 U.S.C. 7412(r)(7)(F)). For sources subject to both 
part 68 and title V, these permit content and state oversight 
requirements are codified at 40 CFR 68.215. For additional 
information concerning the limited intersection between risk 
management plans and title V permits, see In the Matter of Newark 
Bay, Order on Petition No. II-2019-4 at 9-16 (Aug. 16, 2019). 
Requiring title V permits to include permit terms related to the 
General Duty Clause that are even more specific than those the EPA 
has established for risk management plans would go well beyond the 
EPA's long-held view of the scope of section 112(r)-related 
``applicable requirements'' that would be implemented through title 
V.
    \162\ In the Matter of Shintech Inc., PVC Plant, Order on 
Petition, 12 (Sept. 10, 1997).
    \163\ Specifically, the EPA emphasized that ``compliance with 
the requirements of part 68 does not relieve Shintech of its legal 
obligation to meet the general duty requirements of section 
112(r)(1) of the Act . . . . Section 112(r)(1) remains a self-
implementing requirement of the Act, and EPA expects and requires 
all covered sources to comply with the general duty provisions of 
112(r)(1).'' Shintech I Order at 12 n.9. The EPA also explained that 
it would be improper to shield a source from liability under the 
General Duty Clause using a title V permit shield. Id.
    \164\ See Pencor-Masada I Order at 31-32 n.38.
    \165\ See, e.g., Memorandum, Title V Program Approval Criteria 
for Section 112 Activities (April 13, 1993), available at https://www.epa.gov/sites/production/files/2015-08/documents/t5-112.pdf; 
Memorandum, Relationship between the Part 70 Operating Permit 
Program and Section 112(r) (June 24, 1994), available at https://www.epa.gov/sites/production/files/2015-08/documents/opp112r.pdf.
---------------------------------------------------------------------------

    Similar to the EPA's title V guidance, the EPA's longstanding 
guidance concerning the implementation of the General Duty Clause 
similarly suggests that the General Duty Clause is not to be 
implemented through title V. Notably, in the EPA's comprehensive 
Guidance for Implementation of the General Duty Clause (``GDC 
Guidance''),\166\ the EPA details the mechanisms through which the 
General Duty Clause would be implemented and enforced, and never once 
mentions permitting as an available mechanism.
---------------------------------------------------------------------------

    \166\ Guidance for Implementation of the General Duty Clause, 
Clean Air Act Section 112(r)(1), EPA 550-B00-002 (May 2000), 
available at https://www.epa.gov/sites/production/files/documents/gendutyclause-rpt.pdf.
---------------------------------------------------------------------------

4. Additional Policy Considerations
    If the EPA were to consider the General Duty Clause an applicable 
requirement with which title V permit must assure compliance, this 
would have significant programmatic impacts, upsetting the 
administration of both the title V and General Duty Clause programs 
nationwide. For example, The EPA expects that the majority of major 
sources subject to the title V program may, at some time or another, 
also have obligations under the General Duty Clause. If the General 
Duty Clause was considered an applicable requirement, thousands of 
title V permits nationwide would need to be reopened to include 
conditions necessary to identify and assure compliance with the clause. 
Such an enormous resource burden on the permitting authorities that 
implement the title V program would hardly make sense given that these 
same permitting authorities cannot enforce the General Duty 
Clause.\167\ This is clearly not an outcome that either Congress or the 
EPA envisioned when establishing these two programs.\168\
---------------------------------------------------------------------------

    \167\ No statutory or regulatory mechanism currently exists for 
the EPA to establish General Duty Clause requirements for all title 
V sources nationwide. Even if it did, implementation of any such 
mechanism this would present an even greater resource issue for the 
EPA, and would run against Congress's intent that the title V 
program is to be primarily implemented by the states, not the EPA. 
See 42 U.S.C. 7661a; see, e.g., Env't Integrity Project, 969 F.3d at 
536, 545.
    \168\ The EPA, like Congress, does not ``hide elephants in 
mouseholes.'' See Whitman v. Am. Trucking Ass'ns, 531 U.S. 457, 468 
(2001).
---------------------------------------------------------------------------

    Other practical concerns--closely related to the legal issues 
discussed previously--weigh against implementing the General Duty 
Clause through title V. For example, how could a title V permit 
containing General Duty Clause requirements be structured in order to 
avoid the statutory constraints on enforcement discussed earlier? 
Neither the Act nor the EPA's regulations provide that certain portions 
of the title V permit can be labeled ``enforceable only by the EPA.'' 
To the contrary, all federally-enforceable permit terms must 
necessarily be enforceable by the state agencies issuing the permits as 
well as the public at large. See 42 U.S.C. 7604(a)(1), (f)(4), 
7661a(b)(5)(E), 7661c(c); 40 CFR 70.4(b)(3)(vii), 70.6(b)(1). 
Additionally, if the General Duty Clause were considered an 
``applicable requirement'' that states have no authority to enforce, 
the EPA could face pressure to issue notices of deficiency to all 117 
state, local, and Tribal permitting authorities nationwide for their 
failure to enforce all aspects of the title V program. See 40 CFR 
70.10(b), (c)(1), Appx A. Moreover, the EPA could face pressure to take 
over the issuance of all title V permits, or to issue partial permits 
to nearly every title V source to cover these sources' General Duty 
Clause obligations. See 40 CFR 70.10(b)(2)(iii); see also 40 CFR part 
71. These are clearly not reasonable propositions,\169\ but nonetheless 
ones that could inevitably follow if the EPA were to consider the 
General Duty Clause an ``applicable requirement'' for title V purposes.
---------------------------------------------------------------------------

    \169\ Such outcomes would be contrary to congressional intent 
for the title V program to be primarily administered by states.
---------------------------------------------------------------------------

    In addition to these untenable impacts to title V permitting, 
determining that the General Duty Clause must be included in title V 
permits would fundamentally alter the EPA's implementation and 
enforcement of the General Duty Clause itself. The EPA has historically 
described the General Duty Clause as a ``self-executing requirement.'' 
61 FR 31668, 31680 (June 20, 1996).\170\ This means, quite simply,

[[Page 1187]]

that the General Duty Clause is meant to be implemented and enforced 
independently as a direct requirement of the CAA, beyond the strictures 
of any set of regulations or the title V permitting program.
---------------------------------------------------------------------------

    \170\ The EPA has also described the General Duty Clause as a 
``self-enabling'' or ``self-implementing'' requirement. See Letter 
from Mathy Stanislaus, Assistant Administrator, EPA Office of Solid 
Waste and Emergency Response, to Hon. Mike Pompeo, U.S. House of 
Representatives (Aug. 1, 2013)) (Stanislaus-Pompeo Letter); Owens-
Brockway Order at 27; Hazlehurst Order at 12; Pencor-Masada I Order 
at 32 n.38; Shintech I Order at 12 n.9. As discussed in section 
III.E. of this preamble, the EPA has also used the term ``self-
implementing'' to refer to certain types of requirements in other 
CAA programs, including NSPS and NESHAP standards. The intent of 
this phrase is slightly different in the context of the General Duty 
Clause than in the context of NSPS and NESHAP standards. The 
requirements of the General Duty Clause flow directly from the 
statute and are implemented in the absence of implementing 
regulations. By contrast, emission standards like NSPS or NESHAP 
standards are generally ``self-implementing'' once regulations are 
promulgated. The similarity is that in both situations, the self-
implementing requirements are enforceable regardless of whether they 
are reflected in a title V permit.
---------------------------------------------------------------------------

    Although the title V permitting program offers clear benefits for 
identifying and assuring compliance with other types of more typical 
emission standard-based requirements under regulations promulgated 
under the CAA, the title V program is a particularly poor fit for 
implementing the General Duty Clause. The General Duty Clause is, as 
its name suggests, a general duty. Identifying specific obligations 
within each source's title V permit would conflict with the notion of a 
general duty. Moreover, determining whether an individual source has 
satisfied this general duty is highly circumstance-specific. The EPA 
interprets the General Duty Clause to generally require owners and 
operators to adhere to recognized industry practices and standards in 
addition to any applicable government regulations. GDC Guidance at 2, 
11-12. However, there may be situations where circumstances make a 
particular industry standard or municipal code inapplicable, 
unsuitable, or insufficient for a given source, and there may be other 
ways to abate hazards than those listed in a particular industry 
standard or municipal code. Each source's obligations are dependent on 
the detailed knowledge of each individual source. Even in the absence 
of an industry standard, a source's knowledge of a potential hazard and 
a feasible means to abate it is relevant to its general duty under CAA 
section 112(r)(1). See GDC Guidance at 12. Should a source learn of a 
hazard and a feasible means to abate it after its permit is written, 
the General Duty Clause would ordinarily hold the source responsible 
for its knowledge. Given that the factual circumstances and knowledge 
at the source, as well as any relevant industry guidelines, can change 
frequently, the source's obligation under the General Duty Clause are 
necessarily fluid. If General Duty Clause obligations were to be 
included in title V permits as applicable requirements, the relevant 
permit terms would need to be constantly updated to accurately reflect 
a source's obligations. Overall, identifying specific General Duty 
Clause requirements would not only curtail the flexibilities rightly 
available to a source, but it would also undermine the General Duty 
Clause by limiting the scope of a source's potential obligations to 
those specific requirements contained in the permit.\171\ For these 
reasons, the EPA has rejected requests to define and restrict General 
Duty Clause obligations through rulemaking.\172\ It would be similarly 
inappropriate to define and restrict these obligations through title V 
permit terms.
---------------------------------------------------------------------------

    \171\ Were the General Duty Clause treated as a permit term, a 
source could argue it was shielded from its duty by the terms of the 
permit for hazards identified after the permit was issued. The 
potential for sources to request a title V permit shield to cover 
General Duty Clause obligations would exacerbate these concerns, 
notwithstanding that such a permit shield would not be appropriate, 
as the EPA has previously explained. See Shintech I Order at 12 n.9.
    \172\ E.g., Stanislaus-Pompeo Letter.
---------------------------------------------------------------------------

    In summary, the CAA specifically prohibits the General Duty Clause 
from being enforced through the citizen suit provision in section 304 
that is available for all standards and limitations included in title V 
permits. Therefore, the EPA must draft and interpret its regulations 
such that the General Duty Clause is not an applicable requirement for 
purposes of title V permitting. Although the current part 70 and 71 
regulations can be interpreted as consistent with this position, the 
EPA proposes to amend the regulations to make this more explicit. This 
change is consistent with the EPA's implementation of both the title V 
and General Duty Clause programs since their inception in the early 
1990s. Moreover, this proposed amendment is consistent with sound 
policy and avoids nationwide programmatic impacts that would follow if 
the EPA attempted to implement the General Duty Clause through title V.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review, Executive 
Order 13563: Improving Regulation and Regulatory Review, and Executive 
Order 14094: Modernizing Regulatory Review

    This action is not a significant regulatory action as defined in 
Executive Order 12866, as amended by Executive Order 14094, and was 
therefore not subject to a requirement for Executive Order 12866 
review.

B. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. OMB has previously approved the information collection 
activities contained in the existing regulations and has assigned OMB 
control numbers 2060-0243 (for the part 70 state operating permit 
programs) and 2060-0336 (for the part 71 federal operating permit 
program). The clarifications to the regulations proposed in this action 
do not directly change any of the information collection activities 
previously approved by OMB. To the extent that the proposed action 
impacts permitting authorities or permittees, any impacts would fall 
under, and potentially reduce the burden of completing, the activities 
already accounted for in the supporting statement for these information 
collection requests.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not directly impose any requirements on small entities. 
This proposed rule primarily concerns the EPA's exercise of the 
agency's oversight obligations when reviewing title V permits issued by 
state, local, and Tribal permitting authorities, when reviewing title V 
petitions submitted by any person, and when issuing title V permits 
under 40 CFR part 71. This action would not directly impose any 
requirements on the entities involved in these processes (including 
permitting authorities, permittees, and members of the public). 
Although those entities could eventually be affected by case-by-case 
decisions made when the EPA exercises its oversight and/or permitting 
authorities, the economic impact of any such future decisions on any 
small entities is expected to be minimal and not adverse. For example, 
the proposed rule would reduce uncertainty, and potentially cost, for 
small entities that obtain both NSR and title V permits by clarifying 
the limited circumstances under which NSR permitting decisions would be 
subject to additional EPA scrutiny through the title V permitting 
process.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local or

[[Page 1188]]

Tribal governments, or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effect on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government. Additional 
information about how this action could indirectly impact states is 
included in section IV.D.2. of this preamble.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action has Tribal implications. However, it will neither 
impose substantial direct compliance costs on federally recognized 
Tribal governments, nor preempt Tribal law. One Tribal government (the 
Southern Ute Indian Tribe) currently administers an approved part 70 
operating permit program, and one Tribal government (the Navajo Nation) 
currently administers a part 71 operating permit program pursuant to a 
delegation agreement with the EPA. This rulemaking does not require 
those entities to take any specific actions, as described in section 
IV.D.2. of this preamble. The EPA informally engaged with Tribal 
officials under the EPA Policy on Consultation and Coordination with 
Indian Tribes early in the process of developing this regulation to 
permit them to have meaningful and timely input into its development. 
Specifically, prior to issuing this proposed rule, the EPA conducted 
outreach with Tribal representatives through a call with the National 
Tribal Air Association. Further, the Agency offered to further discuss 
this action with the Southern Ute Indian Tribe and Navajo Nation. The 
EPA also solicits comment from affected Tribal governments on the 
implications of this rulemaking.

G. Executive Order 13045: Protection of Children From Environmental 
Health and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may disproportionately affect children, 
per the definition of ``covered regulatory action'' in section 2-202 of 
the Executive Order.
    Therefore, this action is not subject to Executive Order 13045 
because it does not concern an environmental health risk or safety 
risk. Since this action does not concern human health, the EPA's Policy 
on Children's Health also does not apply.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations and 
Executive Order 14096: Revitalizing Our Nation's Commitment to 
Environmental Justice for All

    The EPA finds that it is not practicable to assess whether the 
human health or environmental conditions that exist prior to this 
action result in disproportionate and adverse effects on communities 
with environmental justice concerns. The issues addressed in this 
rulemaking neither directly impact the levels of pollution that 
regulated entities subject to title V and/or NSR permitting may emit, 
nor the distribution of such regulated entities relative to communities 
with environmental justice interests. Rather, the issues in this rule 
are primarily procedural and apply uniformly across the nation.
    This proposed rule seeks to codify the EPA's existing positions, so 
impacts are expected to be generally minimal across the board. To the 
extent this action may impact communities with environmental justice 
concerns, such impacts are expected to mirror those affecting the 
public at large. These expected impacts on the public are explained in 
section IV.D.4. of this preamble. In summary, this rule will provide 
more clarity to the public about the most appropriate, and most 
effective, avenues in which they can raise concerns with different 
types of permitting decisions. It will also incentivize states to offer 
more meaningful public engagement on NSR permitting decisions.
    The EPA provided pre-proposal outreach to community and 
environmental justice groups during a regularly scheduled National 
Environmental Justice Community Engagement teleconference and plans to 
offer more detailed outreach after this proposal is published.

VII. Statutory Authority

    The statutory authority for this action is provided by 42 U.S.C. 
7401 et seq. More specifically, CAA sections 502(b) and 502(d)(3), 42 
U.S.C. 7661a(b) & (d)(3), which direct the Administrator of the EPA to 
promulgate regulations establishing state operating permit programs and 
give the Administrator the authority to establish a federal operating 
permit program. Additionally, the Administrator determines that this 
proposed action is subject to the provisions of CAA section 307(d), 
which establish procedural requirements specific to rulemaking under 
the CAA. CAA section 307(d)(1)(V) provides that the provisions of CAA 
section 307(d) apply to ``such other actions as the Administrator may 
determine.'' 42 U.S.C. 7607(d)(1)(V).

List of Subjects

40 CFR Part 70

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Intergovernmental relations, Reporting and 
recordkeeping requirements.

40 CFR Part 71

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Reporting and recordkeeping requirements.

Michael S. Regan,
Administrator.

    For the reasons set forth in the preamble, the EPA proposes to 
amend 40 CFR parts 70 and 71 as follows:

PART 70--STATE OPERATING PERMIT PROGRAMS

0
1. The authority citation for part 70 continues to read as follows:

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

0
2. Amend Sec.  70.2 by revising paragraphs (1), (2), and (4) for the 
definition ``Applicable requirement'' to read as follows:


Sec.  70.2  Definitions.

* * * * *
    Applicable requirement * * *
    (1) Any standard or other requirement provided for in the 
applicable implementation plan approved or promulgated by EPA through 
rulemaking under title I of the Act that implements the relevant 
requirements of the Act, including any revisions to that plan 
promulgated in part 52 of this chapter, provided that where a 
preconstruction permit described in paragraph (2) of this definition is 
issued

[[Page 1189]]

with public notice and the opportunity for comment and judicial review, 
the terms and conditions of such a permit establish and define, for 
purposes of this paragraph, the applicable requirements of the 
implementation plan that apply to the activities authorized by such a 
preconstruction permit;
    (2) Any term or condition of any preconstruction permits issued 
pursuant to regulations approved or promulgated through rulemaking 
under title I, including parts C or D or section 110(a)(2)(C), of the 
Act;
* * * * *
    (4) Any standard or other requirement under section 112 of the Act, 
including any requirement concerning accident prevention under section 
112(r)(7) of the Act, but not including any requirement under section 
112(r)(1) of the Act;
* * * * *
0
3. Amend Sec.  70.7 by:
0
a. Revising paragraph (d)(1)(iv);
0
b. Removing and reserving paragraph (d)(1)(v); and
0
c. Removing paragraph (d)(4).
    The revision reads as follows:


Sec.  70.7  Permit issuance, renewal, reopenings, and revisions.

* * * * *
    (d) * * *
    (1) * * *
    (iv) Allows for a change in ownership or operational control of a 
source where the permitting authority determines that no other change 
in the permit is necessary, provided that a written agreement 
containing a specific date for transfer of permit responsibility, 
coverage, and liability between the current and new permittee has been 
submitted to the permitting authority; or
    (v) [Reserved]
* * * * *

PART 71--FEDERAL OPERATING PERMIT PROGRAMS

0
4. The authority citation for part 71 continues to read as follows:

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

0
5. Amend Sec.  71.2 by revising paragraphs (1), (2), and (4) for the 
definition ``Applicable requirement'' to read as follows:


Sec.  71.2  Definitions.

* * * * *
    Applicable requirement * * *
    (1) Any standard or other requirement provided for in the 
applicable implementation plan approved or promulgated by EPA through 
rulemaking under title I of the Act that implements the relevant 
requirements of the Act, including any revisions to that plan 
promulgated in part 52 of this chapter, provided that where a 
preconstruction permit described in paragraph (2) of this definition is 
issued with public notice and the opportunity for comment and judicial 
review, the terms and conditions of such a permit establish and define, 
for purposes of this paragraph, the applicable requirements of the 
implementation plan that apply to the activities authorized by such a 
preconstruction permit;
    (2) Any term or condition of any preconstruction permits issued 
pursuant to regulations approved or promulgated through rulemaking 
under title I, including parts C or D or section 110(a)(2)(C), of the 
Act;
* * * * *
    (4) Any standard or other requirement under section 112 of the Act, 
including any requirement concerning accident prevention under section 
112(r)(7) of the Act, but not including any requirement under section 
112(r)(1) of the Act;
* * * * *
0
6. Amend Sec.  71.7 by:
0
a. Revising paragraph (d)(1)(iv);
0
b. Removing and reserving paragraph (d)(1)(v); and
0
c. Removing paragraph (d)(4).
    The revision reads as follows:


Sec.  71.7  Permit issuance, renewal, reopenings, and revisions.

* * * * *
    (d) * * *
    (1) * * *
    (iv) Allows for a change in ownership or operational control of a 
source where the permitting authority determines that no other change 
in the permit is necessary, provided that a written agreement 
containing a specific date for transfer of permit responsibility, 
coverage, and liability between the current and new permittee has been 
submitted to the permitting authority; or
    (v) [Reserved]
* * * * *
[FR Doc. 2023-27759 Filed 1-8-24; 8:45 am]
BILLING CODE 6560-50-P


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