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[Federal Register Volume 81, Number 246 (Thursday, December 22, 2016)]
[Proposed Rules]
[Pages 93872-93875]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-30768]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0727; FRL-9957-13-Region 9]

Limited Federal Implementation Plan; Prevention of Significant 
Deterioration Requirements for Fine Particulate Matter 
(PM2.5); California; North Coast Unified Air Quality 
Management District

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: In this rulemaking, the Environmental Protection Agency (EPA) 
is proposing a limited Federal Implementation Plan (FIP) under the 
Clean Air Act (CAA or Act) to apply to the North Coast Unified Air 
Quality Management District (North Coast Unified AQMD or District) in 
California. This limited FIP would implement provisions to regulate 
fine particulate matter (PM2.5) under the CAA Prevention of 
Significant Deterioration (PSD) program within the District. The EPA 
previously issued two findings of failure to submit a State 
Implementation Plan (SIP) addressing these PSD requirements and also 
issued a partial disapproval action applicable to the North Coast 
Unified AQMD portion of the California SIP that triggered the duty 
under CAA section 110(c)(1) for the EPA to promulgate this limited FIP. 
If we finalize this action as proposed, the EPA will be the CAA PSD 
permitting authority for any new or modified major sources subject to 
PSD review for PM2.5 or its precursors within the District.

DATES:  Any comments must arrive by January 23, 2017. If a public 
hearing is held, the public comment period will automatically be 
extended and will close on February 13, 2017. Public Hearing: If any 
party contacts us in writing by December 29, 2016 to request that a 
public hearing be held, we will hold a public hearing on January 13, 
2017 at 9:00 a.m. Please see the ADDRESSES and SUPPLEMENTARY 
INFORMATION sections of this notice for additional information on the 
public hearing and how to determine whether the comment period has been 
extended.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R09-OAR-2016-0727 at http://www.regulations.gov, or via email to 
r9airpermits@epa.gov. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, 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 whose disclosure 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 http://www2.epa.gov/dockets/commenting-epa-dockets.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index for this rulemaking. Although listed in the 
index, some information is not publicly available (e.g., CBI or other 
information whose disclosure is restricted by statute). Certain other 
material, such as copyrighted material, will be publicly available only 
in hard copy form. Publicly available docket materials are available 
either electronically at www.regulations.gov or in hard copy at EPA 
Region IX, 75 Hawthorne Street, San Francisco, CA 94105, during normal 
business hours. For security purposes, please contact the persons 
identified in the FOR FURTHER INFORMATION CONTACT section during normal 
business hours to view a hard copy of the docket.
    Public Hearing: A public hearing, if requested, will be held in EPA 
Region IX's Conference Center, located at 75 Hawthorne St., San 
Francisco, CA 94105. Please refer to the SUPPLEMENTARY INFORMATION 
section for additional information on the public hearing.

FOR FURTHER INFORMATION CONTACT: 
    Public hearing and comment period: Thien Khoi Nguyen, (415) 947-
4120 or nguyen.thien@epa.gov.
    Technical information: Laura Yannayon, (415) 972-3534 or 
yannayon.laura@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,'' 
``us,'' and ``our'' refer to the EPA.
    Public Hearing: If you wish to request a public hearing and present 
testimony at the hearing, you must make your request in writing to Ms. 
Nguyen of EPA Region IX on or before December 29, 2016. Ms. Nguyen's 
contact information is found in FOR FURTHER INFORMATION CONTACT 
section. If no requests for a public hearing are received by close of 
business on December 29, 2016, a hearing will not be held; please 
contact Ms. Nguyen or check the EPA's Public Notice Web site at https://www.epa.gov/publicnotices to verify if the hearing will actually be 
held and whether the comment period will be automatically extended.
    At the hearing, the hearing officer may limit oral testimony to 5 
minutes per person. The hearing will be limited to the subject matter 
of this proposal, the scope of which is discussed below. The EPA will 
not respond to comments during the public hearing. When we publish our 
final action we will provide a written response to all written or oral 
comments received on the proposal. Any member of the public may provide 
written or oral comments pertaining to our proposal at the hearing. 
Note that any written comments and supporting information submitted 
during the comment period will be considered with the same weight as 
any oral comments presented at the public hearing. Interested parties 
may also submit written comments, as discussed elsewhere in this 
notice.

Table of Contents

I. Background
II. Proposed Action
III. Statutory and Executive Order Reviews

I. Background

    In 2008, the EPA promulgated a rulemaking finalizing regulations to 
implement the New Source Review

[[Page 93873]]

program for PM2.5 (PM2.5 NSR Rule).\1\ The 
PM2.5 NSR Rule required, among other things, that states 
develop SIPs addressing the PSD permitting requirements for the 
regulation of major stationary sources and major modifications of 
PM2.5 emissions, including such sources emitting precursors 
of PM2.5. In 2010, the EPA promulgated a rulemaking amending 
the PSD program regulations for PM2.5 to add provisions 
governing the maximum allowable increases in ambient pollutant 
concentrations (increments), with which new major stationary sources 
and major modifications of PM2.5 and PM2.5 
precursor emissions must demonstrate compliance as a condition of 
obtaining a PSD permit (PM2.5 Increments Rule).\2\ The 
PM2.5 Increments Rule requires states to submit SIPs 
modifying their PSD permitting regulations to incorporate the 
PM2.5 increment provisions.
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    \1\ Implementation of the New Source Review (NSR) Program for 
Particulate Matter Less than 2.5 Micrometers (PM2.), 73 
FR 28321 (May 16, 2008).
    \2\ Prevention of Significant Deterioration (PSD) for 
Particulate Matter Less than 2.5 Micrometers (PM2.5)--
Increments, Significant Impact Levels (SILs) and Significant 
Monitoring Concentrations (SMC), 75 FR 64864 (Oct. 20, 2010). The 
PM2.5 Increments Rule also promulgated several optional 
revisions to the PSD permitting program which are not addressed in 
this notice.
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    On January 15, 2013, the EPA issued a finding of failure to submit 
for the State of California in which it found that California had 
failed to make an infrastructure \3\ SIP submittal providing certain 
required basic program elements of CAA section 110(a)(2) necessary to 
implement the 2008 Ozone National Ambient Air Quality Standard 
(NAAQS).\4\ Relevant here, the EPA found that California had not 
submitted a SIP to address the PSD permitting requirements of CAA 
section 110(a)(2)(C), (D)(i)(II), and (J) for areas including the North 
Coast Unified AQMD. That finding resulted in a deadline of February 14, 
2015, for the EPA to promulgate a FIP pursuant to CAA section 110(c)(1) 
to address the outstanding SIP elements unless, prior to that time, the 
State submitted, and the EPA approved, a SIP that corrected the 
identified deficiencies.\5\
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    \3\ We refer to such SIP revision submittals as 
``infrastructure'' SIPs because they are intended to address the 
basic structural SIP requirements for new or revised NAAQS.
    \4\ 78 FR 2882, 2889.
    \5\ See 78 FR at 2886.
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    On April 1, 2016, the EPA published a final rule partially 
approving and partially disapproving several CAA infrastructure SIP 
revisions submitted by the State of California related to the 
implementation, maintenance and enforcement of the NAAQS for ozone, 
PM2.5, lead, nitrogen dioxide (NO2), and sulfur 
dioxide (SO2).\6\ We partially disapproved a portion of 
these infrastructure SIP submittals as they pertained to the North 
Coast Unified AQMD with respect to the PSD-related requirements of CAA 
sections 110(a)(2)(C), (D)(i)(II), and (J) for all of these NAAQS, in 
part because we found that the District's SIP-approved PSD program did 
not include requirements for the regulation of PM2.5 and 
PM2.5 precursors, condensable PM2.5, or PSD 
increments for PM2.5.\7\ This infrastructure SIP partial 
disapproval action also triggered a duty for the EPA to promulgate a 
FIP pursuant to CAA section 110(c)(1) to address the identified 
deficiencies related to the District's PSD program for 
PM2.5, unless, prior to that time, the State submitted, and 
the EPA approved, a SIP that corrected the identified deficiencies.\8\ 
The EPA has not approved a SIP revision for California to date that 
would address the North Coast Unified AQMD's SIP deficiencies relating 
to the PSD program for PM2.5. Thus, for these 
PM2.5 PSD requirements, the EPA remains subject to the duty 
to promulgate a FIP for the District that was triggered by our January 
15, 2013 finding of failure to submit and our April 1, 2016 partial 
disapproval action for the infrastructure SIP requirements for the 
NAAQS discussed above.
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    \6\ 81 FR 18766.
    \7\ The EPA's April 1, 2016 partial disapproval action for 
infrastructure SIP requirements in CAA sections 110(a)(2)(C), 
(D)(i)(II), and (J) for the North Coast Unified AQMD was also based 
on the EPA's finding that the District's SIP-approved PSD program 
did not regulate oxides of nitrogen (NOX) as an ozone 
precursor. 81 FR at 18773. However, we noted in that action that the 
EPA had already promulgated a limited FIP on August 8, 2011 to 
remedy that SIP deficiency, and thus our 2016 partial disapproval 
action did not trigger a new PSD FIP obligation related to 
NOX as an ozone precursor. See 81 FR at 18773, 18775; see 
also 76 FR 48006 (Aug. 8, 2011).
    \8\ See 81 FR at 18775-18776.
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    On September 2, 2014 the EPA published a final rule finding that 
the North Coast Unified AQMD had failed to make a complete submittal to 
address new requirements for PM2.5 increments in its PSD 
program as required by implementing regulations that the EPA 
promulgated on October 20, 2010.\9\ That finding resulted in a duty and 
a deadline of October 2, 2016, for the EPA to promulgate a FIP pursuant 
to CAA section 110(c)(1) to address these outstanding SIP elements 
unless, prior to that time, the State submitted, and the EPA approved, 
a SIP that corrected the identified deficiencies. As noted above, the 
EPA has not approved a SIP revision for California that would address 
the requirements for PM2.5 increments in the PSD program for 
the North Coast Unified AQMD, thus the EPA remains subject to the 
requirement that it promulgate a FIP to do so.
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    \9\ 79 FR 51913.
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II. Proposed Action

    In this rulemaking, the EPA is promulgating a limited FIP to apply 
the EPA's PSD regulatory program under 40 CFR 52.21 to sources subject 
to PSD review for emissions of PM2.5 or PM2.5 
precursors in the North Coast Unified AQMD. CAA section 110(c)(1) 
requires the Administrator to promulgate a FIP at any time within two 
years after the Administrator either finds that a state has failed to 
make a required submission or disapproves a state's SIP in whole or in 
part, unless the state submits and the EPA approves a SIP that corrects 
the deficiency before the Administrator promulgates a FIP. As indicated 
earlier in this notice, the EPA has not approved a PSD SIP revision for 
California to regulate PM2.5 and PM2.5 precursors 
in the North Coast Unified AQMD that would address the District's 
PM2.5 PSD program deficiencies identified in the January 15, 
2013, September 2, 2014, and April 1, 2016 EPA actions discussed above. 
Accordingly, as authorized by CAA section 110(c)(1), the EPA is 
proposing to promulgate a limited FIP for the North Coast Unified AQMD 
in order to address the identified deficiencies in the State's PSD 
program with respect to the regulation of major stationary sources and 
major modifications of sources subject to PSD review for emissions of 
PM2.5 or PM2.5 precursors.
    The limited FIP proposed in this action consists of the EPA 
regulations found in 40 CFR 52.21, including the PSD applicability 
provisions, with a limitation to assure that, strictly for purposes of 
this rulemaking, the FIP applies only to the regulation of 
PM2.5 and PM2.5 precursors. Accordingly, for the 
purposes of ensuring compliance with the PSD permitting requirements 
with respect to PM2.5 and PM2.5 precursors for 
sources within the North Coast Unified AQMD, the EPA would serve as the 
PSD permitting authority.
    We note that the EPA has previously promulgated limited CAA PSD 
FIPs for the North Coast Unified AQMD to implement the federal PSD 
permitting program under 40 CFR 52.21 for certain other sources and 
pollutants, including the PSD program as it regulates NOX as 
an ozone precursor, as discussed above; these limited FIPs remain in 
effect. See 40 CFR 52.270(b)(2). The EPA and the District have entered 
into partial delegation agreements pursuant to 40 CFR 52.21(u), dated 
January 8, 1993 and

[[Page 93874]]

October 6, 2015, whereby the EPA has delegated authority to the 
District to conduct PSD review for certain sources subject to these 
limited PSD FIPs.\10\ For all other major emitting facilities and 
pollutants not covered by the limited PSD FIPs applicable to the 
District as specified in 40 CFR 52.270(b)(2), the North Coast Unified 
AQMD will continue to serve as the PSD permitting authority under its 
SIP-approved PSD program.
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    \10\ If the EPA takes final action to promulgate this limited 
PSD FIP for PM2.5 and PM2.5 precursors, the 
District may similarly seek a partial delegation of authority from 
the EPA, pursuant to 40 CFR 52.21(u), to conduct PSD review for the 
sources regulated under this limited PSD FIP.
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    This proposed FIP is narrow in scope, in that it will only address 
the PM2.5 PSD deficiencies for the District that were 
identified in our 2016 infrastructure SIP partial disapproval action. 
We note that such deficiencies include the deficiencies for PSD 
requirements for PM2.5 increments that were also the focus 
of the EPA's September 2, 2014 finding of failure to submit action.
    If finalized, today's proposed limited FIP action would satisfy the 
remaining FIP requirements for the North Coast Unified AQMD that were 
triggered by our January 15, 2013 finding of failure to submit relating 
to ozone infrastructure SIP requirements; our September 2, 2014 finding 
of failure to submit related to the District's PSD requirements for 
PM2.5 increments; and our April 1, 2016 partial disapproval 
action for the infrastructure SIP requirements for the NAAQS for ozone, 
PM2.5, lead, NO2, and SO2. The 
proposed FIP will be codified in 40 CFR 52.270(b)(2)(v).
    If finalized, this limited FIP will remain in place until 
California submits a SIP revision addressing the identified 
deficiencies relating to the District's PSD program for 
PM2.5 and we approve that SIP revision. The EPA is 
soliciting public comments on this proposal and will accept comments 
until the date noted in the ``DATE'' section above.

III. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

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

    This action is not a significant regulatory action and therefore 
was not submitted to the Office of Management and Budget (OMB) for 
review.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
The OMB has previously approved the information collection requirements 
contained in the existing regulations for PSD (e.g., 40 CFR 52.21) 
under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et 
seq. and has assigned OMB control number 2060-0003. The OMB control 
numbers for the EPA's regulations in 40 CFR are listed in 40 CFR part 
9.

C. Regulatory Flexibility Act

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities. Although this rule 
could lead to federal permitting requirements for a handful of sources 
in the North Coast Unified AQMD, the EPA believes that in such an 
event, there will not be a significant economic impact on the 
potentially affected sources and that any such impacts would not affect 
a substantial number of sources, regardless of size.
    In this action, the EPA is proposing a narrow FIP that would apply 
federal PSD regulations for certain new or modified major stationary 
sources with emissions of PM2.5 or its precursors within the 
North Coast Unified AQMD. General PSD requirements for major emitting 
facilities with emissions of other regulated NSR pollutants already 
apply within the District, thus the incremental impact associated with 
application of the specific requirements of the PSD regulations for 
certain sources emitting PM2.5 or its precursors is expected 
to be relatively minor. In addition, there are few major emitting 
facilities currently located in the District that would be subject to 
the requirements of the FIP. The EPA is not aware of any specific new 
sources that would be subject to regulation under our proposed narrow 
FIP in the future. For these reasons, the EPA anticipates that any 
additional burden imposed as a result of this proposed FIP would be 
minimal and would affect few, if any, sources. Accordingly, the EPA 
does not believe that such a FIP would have a significant economic 
impact on sources in the District, regardless of size.

D. Unfunded Mandates Reform Act

    This action does not contain an unfunded mandate of $100 million or 
more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. While the EPA's 
proposed action will lead to the application of federal PSD regulations 
for PM2.5 to sources within the North Coast Unified AQMD, 
general PSD requirements for major emitting facilities with emissions 
of other regulated NSR pollutants already apply within the District, 
and thus the incremental impact associated with application of the 
specific requirements of the PSD regulations for certain sources 
emitting PM2.5 or its precursors is expected to be 
relatively minor. In addition, there are few major emitting facilities 
currently located in the District that would be subject to the 
requirements of the FIP. The EPA is not aware of any specific new 
sources that would be subject to regulation under our proposed narrow 
FIP in the future. Accordingly, the EPA has determined that this action 
does not contain an unfunded mandate of $100 million or more as 
described in UMRA, 2 U.S.C. 1531-1538, and that it will not 
significantly or uniquely affect small governments.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects 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.

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

    This action does not have tribal implications, as specified in 
Executive Order 13175. It will not have substantial direct effects on 
tribal governments, on the relationship between the Federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the Federal government and Indian tribes. The FIP is not 
proposed 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. Thus, Executive Order 13175 does not apply to this rule.

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

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may

[[Page 93875]]

disproportionately affect children, per the definition of ``covered 
regulatory action'' in section 2-202 of the Executive Order. This 
action is not subject to Executive Order 13045 because, as a limited 
FIP establishing PSD regulatory requirements for the PM2.5 
NAAQS for certain sources located in the North Coast Unified AQMD, it 
implements a previously promulgated federal standard.

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

    This rule 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

    The EPA believes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations and/or indigenous peoples, as 
specified in Executive Order 12898 (59 FR 7629, February 16, 1994). 
This action does not affect the level of protection provided to human 
health or the environment. With this action, the EPA is only proposing 
to implement the PSD permitting requirements mandated by the CAA in 
order to ensure compliance with the PM2.5 NAAQS and 
PM2.5 increments, which were promulgated in separate, prior 
rulemakings.

List of Subjects in 40 CFR Part 52

    Air pollution control, Environmental protection, Incorporation by 
Reference, Intergovernmental relations, Lead, Nitrogen oxides, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
dioxide.

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

    Dated: December 14, 2016.
Deborah Jordan,
Acting Regional Administrator, Region IX.
    For the reasons set forth in the preamble, the EPA proposes to 
amend 40 CFR part 52 as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart F--California

0
2. Amend Sec.  52.270 by adding paragraph (b)(2)(v) to read as follows:

Sec.  52.270  Significant deterioration of air quality.

* * * * *
    (b) * * *
    (2) * * *
    (v) Those projects that are major stationary sources or major 
modifications for emissions of PM2.5 or its precursors under 
Sec.  52.21, and those projects that are major stationary sources under 
Sec.  52.21 with the potential to emit PM2.5 or its 
precursors at a rate that would meet or exceed the rates specified at 
Sec.  52.21(b)(23)(i).
* * * * *
[FR Doc. 2016-30768 Filed 12-21-16; 8:45 am]
 BILLING CODE 6560-50-P
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