Federal Register / Vol. 89, No. 1 / Tuesday, January 2, 2024 / Proposed Rules 39 

1The Commission elects not to provide a 

separate, second comment period for rebuttal 

comments. See 16 CFR 1.11(e) (‘‘The Commission 

may in its discretion provide for a separate rebuttal 

period following the comment period.’’). 

II. Request for Comment 

The Federal Trade Commission 

(‘‘FTC’’ or ‘‘Commission’’) invites 

interested parties to submit data, views, 

and arguments on the proposed Rule on 

Unfair or Deceptive Fees and, 

specifically, on the questions set forth in 

Section X of the NPRM. The comment 

period will remain open until February 

7, 2024.1 To the extent practicable, all 

comments will be available on the 

public record and posted at the docket 

for this rulemaking at https://

www.regulations.gov/docket/FTC-2023- 

0064. For additional detail regarding 

comment submission, see the 

information in the NPRM published at 

88 FR 77420. 

By direction of the Commission. 

Joel Christie, 

Acting Secretary. 

[FR Doc. 2023–28669 Filed 12–29–23; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–112916–23] 

RIN 1545–BQ90 

Statutory Disallowance of Deductions 

for Certain Qualified Conservation 

Contributions Made by Partnerships 

and S Corporations; Hearing 

Cancellation 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Cancellation of a notice of 

public hearing on a proposed 

rulemaking. 

SUMMARY: This document cancels a 

public hearing on proposed regulations 

concerning the statutory disallowance 

rule enacted by the SECURE 2.0 Act of 

2022 to disallow a Federal income tax 

deduction for a qualified conservation 

contribution made by a partnership or 

an S corporation after December 29, 

2022, if the amount of the contribution 

exceeds 2.5 times the sum of each 

partner’s or S corporation shareholder’s 

relevant basis. 

DATES: The public hearing scheduled for 

January 3, 2024, at 10 a.m. ET is 

cancelled. 

FOR FURTHER INFORMATION CONTACT: 

Vivian Hayes of the Publications and 

Regulations Section, Associate Chief 

Counsel (Procedure and Administration) 

at (202) 317–6901 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: A notice 

of proposed rulemaking and a notice of 

public hearing that appeared in the 

Federal Register on November 20, 2023 

(88 FR 80910) announced that a public 

hearing being held in person and by 

teleconference was scheduled for 

January 3, 2024, at 10 a.m. ET. The 

subject of the public hearing is under 26 

CFR part 1. 

The public comment period for these 

regulations expired on December 20, 

2023. The notice of proposed 

rulemaking and notice of public hearing 

instructed those interested in testifying 

at the public hearing to submit a request 

to testify and an outline of the topics to 

be addressed by December 20, 2023. We 

did not receive a request to testify at the 

Public Hearing. Therefore, the public 

hearing scheduled for January 3, 2024, 

at 10 a.m. ET is cancelled. 

Oluwafunmilayo A. Taylor, 

Section Chief, Publications and Regulations 

Section, Associate Chief Counsel, (Procedure 

& Administration). 

[FR Doc. 2023–28793 Filed 12–29–23; 8:45 am] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2023–0620; FRL–11601– 

01–R9] 

Air Plan Revisions; Arizona; Arizona 

Department of Environmental Quality; 

Stationary Source Permits 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing to approve 

two revisions to the Arizona Department 

of Environmental Quality (ADEQ) 

portion of the Arizona State 

Implementation Plan (SIP). In this 

action, we are proposing to approve 

revisions submitted by the ADEQ 

governing the issuance of permits for 

stationary sources in accordance with 

changes that the EPA has made to its 

New Source Review (NSR) program 

regulations under the Clean Air Act 

(CAA or ‘‘the Act’’). We are also 

proposing to determine that with these 

revisions, the ADEQ’s NSR program 

satisfies the requirements for the 

preconstruction review and permitting 

of major sources and major 

modifications under part D of title I of 

the Act for areas designated 

nonattainment with the 2015 ozone 

National Ambient Air Quality Standards 

(NAAQS) with a Marginal classification, 

for areas and sources within the ADEQ’s 

permitting jurisdiction. We are taking 

comments on this proposal and plan to 

follow with a final action. 

DATES: Comments must be received on 

or before February 1, 2024. 

ADDRESSES: Submit your comments, 

identified by Docket ID No EPA–R09– 

OAR–2023–0620 at https://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or removed from Regulations.gov. 

The EPA may publish any comment 

received to its public docket. Do not 

submit electronically any information 

you consider to be Confidential 

Business Information (CBI) or other 

information the disclosure of which is 

restricted by statute. Multimedia 

submissions (audio, video, etc.) must be 

accompanied by a written comment. 

The written comment is considered the 

official comment and should include 

discussion of all points you wish to 

make. The EPA will generally not 

consider comments or comment 

contents located outside of the primary 

submission (i.e., on the web, cloud, or 

other file sharing system). For 

additional submission methods, please 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section. 

For the full EPA public comment policy, 

information about CBI or multimedia 

submissions, and general guidance on 

making effective comments, please visit 

https://www.epa.gov/dockets/ 

commenting-epa-dockets. If you need 

assistance in a language other than 

English or if you are a person with 

disabilities who needs a reasonable 

accommodation at no cost to you, please 

contact the person identified in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Camille Cassar, EPA Region IX, 75 

Hawthorne St., San Francisco, CA 

94105; by phone: (415) 947–4164; or by 

email to cassar.camille@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document, ‘‘we,’’ ‘‘us,’’ 

and ‘‘our’’ refer to the EPA. 

Table of Contents 

I. The State’s Submittal 

A. What rules did the State submit? 

B. Are there other versions of these rules? 

C. What is the purpose of the submitted 

rules? 

II. The EPA’s Evaluation 

A. What is the background for this action? 

B. How is the EPA evaluating these rules? 


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40 Federal Register / Vol. 89, No. 1 / Tuesday, January 2, 2024 / Proposed Rules 

1See 86 FR 37918, 37922 (July 19, 2021). 

2See 86 FR 37918, 37924. 

3 40 CFR 50.19; see 80 FR 65292, 65452–53. 

4 83 FR 25776. We note that on October 7, 2022, 

the EPA issued a final rule determining that while 

the Yuma nonattainment area attained the 2015 

ozone NAAQS, the Phoenix-Mesa nonattainment 

area failed to attain by the applicable attainment 

date and therefore would be reclassified as a 

Moderate nonattainment area for the 2015 ozone 

NAAQS. 87 FR 60897. 

C. Do the rules meet the evaluation 

criteria? 

III. Proposed Action and Public Comment 

IV. Incorporation by Reference 

V. Statutory and Executive Order Reviews 

I. The State’s Submittal 

A. What rules did the State submit? 

The rules that are the subject of the 

EPA’s current proposed action were 

adopted by the ADEQ and submitted to 

the EPA on December 6, 2022 

(‘‘December 2022 NSR submittal’’). The 

ADEQ is the governor’s designee for 

submitting official revisions of the 

Arizona SIP to the EPA. Table 1 below 

identifies the rules reviewed in this 

action for approval into the Arizona SIP. 

TABLE 1—SIP SUBMITTAL

Rule citation Title 

State effective 

date of rule to 

be added 

R18–2–101 (except 20) .............................................................. Definitions .................................................................................. 05/04/2022 

R18–2–404 .................................................................................. Offset Standards ........................................................................ 05/04/2022 

The ADEQ’s December 2022 NSR 

submittal was determined to be 

complete by operation of law, according 

to Appendix V of 40 CFR part 51, on 

June 6, 2023. 

B. Are there other versions of these 

rules? 

The SIP-approved versions of the 

submitted rules are identified below in 

Table 2. The ADEQ’s December 2022 

NSR submittal also requests that, as part 

of this action, we remove from the 

ADEQ portion of the Arizona SIP the 

previous SIP-approved versions of the 

same rules. The rules requested for 

removal from the SIP are listed in Table 

2 below. 

TABLE 2—CURRENT SIP APPROVED RULES

Rule addressed in this TSD and rulemaking Title Existing SIP rule(s) requested to be removed from SIP 

(state effective date) 

R18–2–101 (except 20) ...................................... Definitions ................... R18–2–101 (except 20) (02/01/2020). 

R18–2–404 ......................................................... Offset Standards ......... R18–2–404 (03/21/2017). 

C. What is the purpose of the submitted 

rules? 

The purpose of these submitted 

revisions for the ADEQ’s NSR program 

is to update its rules to ensure 

consistency with certain changes that 

the EPA has made to its NSR program 

rules, and to address the CAA’s 

statutory and regulatory requirements 

for Nonattainment New Source Review 

(NNSR) permit programs in areas 

designated nonattainment with the 2015 

ozone NAAQS with a Marginal 

classification, for areas and sources 

within the ADEQ’s permitting 

jurisdiction. 

II. The EPA’s Evaluation 

A. What is the background for this 

action? 

This action focuses on the 

preconstruction permitting 

requirements for stationary sources, also 

called New Source Review, in title I of 

the CAA and the EPA’s implementing 

regulations addressing the SIP 

requirements for state NSR programs at 

40 CFR part 51, subpart I. 

The action focuses on two necessary 

revisions to the ADEQ’s SIP-approved 

NSR program rules in accordance with 

changes that the EPA has made to its 

NSR program rules and provides the 

EPA’s findings on whether these SIP 

revisions submitted by the ADEQ meet 

federal NSR requirements. 

Submitted Rule Arizona 

Administrative Code (A.A.C.) R18–2– 

101 (except 20) contains a change to the 

definition of categorical sources for 

‘‘municipal incinerators’’ as compared 

with the prior version of the rule that is 

currently included in the Arizona SIP. 

The ADEQ amended its definition of 

‘‘categorical sources’’ to include 

municipal incinerators capable of 

charging more than 50 tons of refuse per 

day, as compared with the previous 

version of the definition, which applied 

only to those capable of charging more 

than 250 tons per day. This change was 

made to ensure consistency with CAA 

section 169(a) and federal regulatory 

requirements related to major NSR 

applicability for municipal incinerators 

in the EPA’s regulations governing state 

Major NSR programs at 40 CFR 51.165– 

51.166, as updated by the EPA’s 2021 

Error Corrections Rule.1

Submitted Rule A.A.C. R18–2–404 

eliminates the ozone interprecursor 

trading provision that was included in 

the prior version of the rule that is 

currently included in the Arizona SIP. 

This change was made to ensure 

consistency with the federal rules 

governing NNSR programs regulating 

ozone precursors in 40 CFR 51.165, 

which were also updated as part of the 

EPA’s Error Corrections Rule.2

The ADEQ requested that the EPA 

replace the current SIP-approved 

versions of R18–2–101 and R18–2–404 

with the submitted revised versions. 

The December 2022 NSR submittal 

also addresses state NNSR program 

requirements for the 2015 ozone 

NAAQS. On October 26, 2015, the EPA 

issued a final rule revising the NAAQS 

for ozone, reducing the standards to a 

level of 0.070 ppm.3 On June 4, 2018, 

certain portions of Arizona (Yuma and 

Phoenix-Mesa) were designated and 

classified as Marginal nonattainment for 

the 2015 ozone NAAQS.4 This 

designation of certain portions of 

Arizona as federal ozone nonattainment 

areas for the 2015 ozone NAAQS 

triggered the requirement for the ADEQ 

to provide a SIP submittal addressing 

the NNSR program requirements for this 

NAAQS and classification for sources 

and areas within its permitting 


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Federal Register / Vol. 89, No. 1 / Tuesday, January 2, 2024 / Proposed Rules 41 

5CAA section 182(a); 40 CFR 51.1314. 

6CAA section 110(l) requires SIP revisions to be 

subject to reasonable notice and public hearing 

prior to adoption and submittal by states to the EPA 

and prohibits the EPA from approving any SIP 

revision that would interfere with any applicable 

requirement concerning attainment and reasonable 

further progress, or any other applicable 

requirement of the CAA. 

7CAA section 193 prohibits the modification of 

any SIP-approved control requirement in effect 

before November 15, 1990 in a nonattainment area, 

unless the modification ensures equivalent or 

greater emission reductions of the relevant 

pollutants. 

jurisdiction.5 Therefore, this action also 

addresses whether the ADEQ’s NNSR 

program, as revised by the rules in this 

SIP submittal, satisfies the applicable 

CAA NNSR program requirements for 

the 2015 ozone NAAQS for the Marginal 

classification for sources and areas 

within its permitting jurisdiction. 

B. How is the EPA evaluating these 

rules? 

The EPA reviewed the December 2022 

NSR submittal for compliance with 

CAA requirements for SIPs in general as 

set forth in CAA section 110(a)(2), the 

requirements for state stationary source 

preconstruction permitting programs in 

40 CFR part 51, subpart I, including 

certain changes made to those rules in 

the Error Corrections Rule, and the 

requirements related to SIP revisions in 

CAA sections 110(l) 6 and 193.7 Our 

review also evaluated the ADEQ’s NNSR 

program, as revised by the submitted 

revised rules, for compliance with the 

state NNSR program requirements 

applicable to ozone nonattainment areas 

with a Marginal classification. 

C. Do the rules meet the evaluation 

criteria? 

With respect to procedural 

requirements, CAA sections 110(a)(2) 

and 110(l) require that revisions to a SIP 

be adopted by the state after reasonable 

notice and public hearing. Based on our 

review of the public process 

documentation included in the 

December 2022 NSR submittal, we find 

that the ADEQ has provided sufficient 

evidence of public notice, opportunity 

for comment and a public hearing prior 

to adoption and submittal of the rules to 

the EPA. 

We have evaluated the rule revisions 

in the December 2022 NSR submittal 

with respect to the CAA requirements 

for SIPs in general as set forth in CAA 

section 110(a)(2), the requirements for 

state stationary source preconstruction 

permitting programs in 40 CFR part 51, 

subpart I, including recent changes to 

the requirements for State stationary 

source preconstruction permitting 

programs in 40 CFR part 51, subpart I, 

made in the EPA’s Error Corrections 

Rule, as described above, and we find 

that the submittal satisfies these 

requirements. In addition, we have 

evaluated the ADEQ’s NNSR program, 

as revised by the submitted revised 

rules, for compliance with the NNSR 

requirements applicable to ozone 

nonattainment areas with a Marginal 

classification, and have determined that 

this program satisfies the applicable 

CAA and regulatory requirements for 

NNSR permit programs under part D of 

title I of the Act for all relevant ozone 

NAAQS, specifically including the 

requirements applicable to areas 

designated nonattainment for the 2015 

ozone NAAQS with a Marginal 

classification, for the areas and sources 

within the ADEQ’s permitting 

jurisdiction. 

Regarding the additional substantive 

requirements of CAA sections 110(l) and 

193, our action will result in a more 

stringent SIP, while not relaxing any 

existing provision contained in the SIP. 

We have concluded that our action 

would comply with section 110(l) 

because our approval of these rules will 

not interfere with any applicable 

requirement concerning attainment and 

reasonable further progress, or any other 

CAA applicable requirement. In 

addition, our approval of these rules 

will not relax any pre-November 15, 

1990 requirement in the SIP, and 

therefore changes to the SIP resulting 

from this action ensure greater or 

equivalent emission reductions of the 

nonattainment pollutants and their 

precursors in the District; accordingly, 

we have concluded that our action is 

consistent with the requirements of 

CAA section 193. 

Our TSD contains a more detailed 

discussion of our analysis of the 

December 2022 NSR submittal. 

III. Proposed Action and Public 

Comment 

As authorized in section 110(k)(3) of 

the Act, the EPA is proposing to fully 

approve the submitted rules into the 

Arizona SIP because they fulfill all 

relevant CAA requirements, and to 

remove the prior version of these rules 

from the SIP. We have concluded that 

our approval of the submitted rules 

would comply with the relevant 

provisions of CAA sections 110(a)(2), 

110(l), 165, 172(c)(5), 173, and 193, and 

40 CFR 51.160–51.166. We are also 

proposing to find that with the 

submitted rule revisions, the ADEQ’s 

NSR program satisfies the requirements 

for the preconstruction review and 

permitting of major sources and major 

modifications under part D of title I of 

the Act for areas designated 

nonattainment with the 2015 ozone 

NAAQS with a Marginal classification, 

for the areas and sources within the 

ADEQ’s permitting jurisdiction. If we 

finalize this action as proposed, our 

action will be codified through revisions 

to 40 CFR 52.220a (Identification of 

plan-in part). 

We will accept comments from the 

public on this proposal until February 1, 

2024. 

IV. Incorporation by Reference 

In this rule, the EPA is proposing to 

include in a final EPA rule regulatory 

text that includes incorporation by 

reference. In accordance with 

requirements of 1 CFR 51.5, the EPA is 

proposing to incorporate by reference 

the following the ADEQ rules: A.A.C. 

R18–2–101 (except 20) and R18–2–404, 

as described in Table 1 of this proposal. 

These rules are intended to address the 

CAA’s statutory and regulatory 

requirements for New Source Review 

permit programs for major sources 

emitting nonattainment air pollutants 

and their precursors under parts C and 

D of title I of the CAA. The EPA has 

made, and will continue to make, these 

materials available through https://

www.regulations.gov and at the EPA 

Region IX Office (please contact the 

person identified in the FOR FURTHER

INFORMATION CONTACT section of this 

preamble for more information). 

V. Statutory and Executive Order 

Reviews 

Under the Clean Air Act, the 

Administrator is required to approve a 

SIP submission that complies with the 

provisions of the Act and applicable 

federal regulations. 42 U.S.C. 7410(k); 

40 CFR 52.02(a). Thus, in reviewing SIP 

submissions, the EPA’s role is to 

approve state choices, provided that 

they meet the criteria of the Clean Air 

Act. Accordingly, this proposed action 

merely proposes to approve state law as 

meeting federal requirements and does 

not impose additional requirements 

beyond those imposed by state law. For 

that reason, this proposed action: 

• Is not a ‘‘significant regulatory 

action’’ subject to review by the Office 

of Management and Budget under 

Executive Orders 12866 (58 FR 51735, 

October 4, 1993) and 13563 (76 FR 3821, 

January 21, 2011); 

• Does not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act (44 

U.S.C. 3501 et seq.); 

• Is certified as not having a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.); 


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42 Federal Register / Vol. 89, No. 1 / Tuesday, January 2, 2024 / Proposed Rules 

• Does not contain any unfunded 

mandate or significantly or uniquely 

affect small governments, as described 

in the Unfunded Mandates Reform Act 

of 1995 (Pub. L. 104–4); 

• Does not have federalism 

implications as specified in Executive 

Order 13132 (64 FR 43255, August 10, 

1999); 

• Is not an economically significant 

regulatory action based on health or 

safety risks subject to Executive Order 

13045 (62 FR 19885, April 23, 1997); 

• Is not a significant regulatory action 

subject to Executive Order 13211 (66 FR 

28355, May 22, 2001); and 

• Is not subject to requirements of 

Section 12(d) of the National 

Technology Transfer and Advancement 

Act of 1995 (15 U.S.C. 272 note) because 

application of those requirements would 

be inconsistent with the Clean Air Act. 

Executive Order 12898 (Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations, 59 FR 7629, 

Feb. 16, 1994) (E.O. 12898) directs 

Federal agencies to identify and address 

‘‘disproportionately high and adverse 

human health or environmental effects’’ 

of their actions on minority populations 

and low-income populations to the 

greatest extent practicable and 

permitted by law. The EPA defines 

environmental justice (EJ) as ‘‘the fair 

treatment and meaningful involvement 

of all people regardless of race, color, 

national origin, or income with respect 

to the development, implementation, 

and enforcement of environmental laws, 

regulations, and policies.’’ The EPA 

further defines the term fair treatment to 

mean that ‘‘no group of people should 

bear a disproportionate burden of 

environmental harms and risks, 

including those resulting from the 

negative environmental consequences of 

industrial, governmental, and 

commercial operations or programs and 

policies.’’ 

The ADEQ did not evaluate 

environmental justice considerations as 

part of its SIP submittal; the CAA and 

applicable implementing regulations 

neither prohibit nor require such an 

evaluation. The EPA did not perform an 

EJ analysis and did not consider EJ in 

this action. Due to the nature of the 

action being taken here, this action is 

expected to have a neutral to positive 

impact on the air quality of the affected 

area. Consideration of EJ is not required 

as part of this action, and there is no 

information in the record inconsistent 

with the stated goal of E.O. 12898 of 

achieving environmental justice for 

people of color, low-income 

populations, and Indigenous peoples. 

In addition, the SIP is not approved 

to apply on any Indian reservation land 

or in any other area where the EPA or 

an Indian tribe has demonstrated that a 

tribe has jurisdiction. In those areas of 

Indian country, the rule does not have 

tribal implications and will not impose 

substantial direct costs on tribal 

governments or preempt tribal law as 

specified by Executive Order 13175 (65 

FR 67249, November 9, 2000). 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Incorporation by 

reference, Intergovernmental relations, 

Nitrogen oxides, Ozone, Reporting and 

recordkeeping requirements, Volatile 

organic compounds. 

Dated: December 20, 2023. 

Martha Guzman Aceves, 

Regional Administrator, Region IX. 

[FR Doc. 2023–28528 Filed 12–29–23; 8:45 am] 

BILLING CODE 6560–50–P 


khammond on DSKJM1Z7X2PROD with PROPOSALS