```

[Federal Register Volume 77, Number 198 (Friday, October 12, 2012)]
[Rules and Regulations]
[Pages 62150-62158]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24096]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2011-0227; FRL-9734-7]

Approval and Promulgation of Implementation Plans; Kentucky; 
Approval of Revisions to the Jefferson County Portion of the Kentucky 
SIP; New Source Review; Prevention of Significant Deterioration

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is taking final action to approve multiple changes to the 
Jefferson County portion of the Kentucky State Implementation Plan 
(SIP), submitted by the Commonwealth of Kentucky, through the Kentucky 
Division for Air Quality (KDAQ), to EPA in two submittals dated June 1, 
2009, and February 8, 2011. These revisions were submitted by KDAQ on 
behalf of the Louisville Metro Air Pollution Control District (LMAPCD) 
(also referred to as Jefferson County) and modify the LMAPCD New Source 
Review (NSR) Prevention of Significant Deterioration (PSD) permitting 
regulations. EPA is approving Jefferson County's June 1, 2009, and 
February 8, 2011, SIP revisions because the Agency has determined that 
these SIP revisions are consistent with the Clean Air Act (CAA or Act) 
and EPA regulations regarding the PSD permitting program.

DATES: This rule is effective November 13, 2012.

ADDRESSES: EPA has established a docket for this action under Docket 
Identification No. EPA-R04-OAR-2011-0227. All documents in the docket 
are listed on the www.regulations.gov Web site. Although listed in the 
index, some information is not publicly available, i.e., Confidential 
Business Information or other information whose disclosure is 
restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the Internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available either electronically through www.regulations.gov or in hard 
copy at the Regulatory Development Section, Air Planning Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. EPA requests that if at all possible, you contact the 
person listed in the FOR FURTHER INFORMATION CONTACT section to 
schedule your inspection. The Regional Office's official hours of 
business are Monday through Friday, 8:30 to 4:30, excluding federal 
holidays.

FOR FURTHER INFORMATION CONTACT: For information regarding the 
Jefferson County portion of the Kentucky SIP, contact Ms. Twunjala 
Bradley, Regulatory Development Section, Air Planning Branch, Air, 
Pesticides and Toxics Management Division, U.S. Environmental 
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 
30303-8960. Ms. Bradley's telephone number is (404) 562-9352; email 
address: bradley.twunjala@epa.gov. For information regarding the GHG 
Tailoring Rule, 2002 NSR Reform and NSR PM2.5 Rule, contact 
Yolanda Adams, Air Permits Section, at the same address above. Ms. 
Adams' telephone number is (404) 562-9214; email address: 
adams.yolanda@epa.gov. For information regarding the Phase II Rule and 
ozone NAAQS, contact Jane Spann, Regulatory Development Section, at the 
same address above. Ms. Spann's telephone number is (404) 562-9029; 
email address: spann.jane@epa.gov. For information regarding the 
PM2.5 NAAQS, contact Mr. Joel Huey, Regulatory Development 
Section, at the

[[Page 62151]]

same address above. Mr. Huey's telephone number is (404) 562-9104; 
email address: huey.joel@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background
II. EPA's Action on Jefferson County's SIP Revision to Adopt the GHG 
Tailoring Rule
III. EPA's Action on Jefferson County's SIP Revision to Adopt the 
NSR PM2.5 PSD Permitting Requirements
IV. EPA's Action on Jefferson County's SIP Revisions to Adopt the 
Phase II Rule
V. EPA's Action on Jefferson County's SIP Revision to Adopt the 
Federal NSR Reform and Reasonable Possibility Provisions
VI. EPA's Action on Jefferson County's Automatic Rescission Clause
VII. Final Action
VIII. Statutory and Executive Order Reviews

I. Background

    On June 1, 2009, and February 8, 2011, the Commonwealth of Kentucky 
through KDAQ (and on behalf of LMAPCD) submitted two SIP revisions to 
EPA for approval into the Jefferson County portion of the Kentucky SIP 
to adopt federal NSR PSD permitting requirements. The SIP revisions 
consist of changes to the LMAPCD Air Quality Regulations, Regulation 2 
Permit Requirements: Regulation 2.05--Prevention of Significant 
Deterioration of Air Quality, and incorporate by reference (IBR) \1\ 
several NSR PSD permitting requirements promulgated at 40 CFR 52.21. 
Specifically, the June 1, 2009, SIP revision: (1) Incorporates 
provisions for implementing the PSD program for the PM2.5 
NAAQS as promulgated in the NSR PM2.5 Rule,\2\ 73 FR 28321 
(May 16, 2008); (2) adopts PSD provisions related to the implementation 
of the 1997 8-hour ozone Phase II Rule (Phase II Rule), including 
nitrogen oxides (NOX) as a precursor to ozone, 70 FR 71612 
(November 29, 2005); and (3) adopts federal PSD regulations established 
in the 2002 NSR Reform Rules, 67 FR 80186 (December 31, 2002), and the 
NSR Reasonable Possibility Rule, 72 FR 72607 (December 21, 2007). These 
PSD permitting provisions became effective in Jefferson County on May 
20, 2009. The February 8, 2011, SIP revision provides Jefferson County 
with the authority to regulate greenhouse gas (GHG) emissions under its 
PSD program and establishes appropriate emission thresholds for 
determining which new stationary sources and modification projects 
become subject to LMAPCD's PSD permitting requirements for their GHG 
emissions as promulgated in the GHG Tailoring Rule, 75 FR 31514 (June 
3, 2010). These GHG PSD applicability provisions became effective in 
Jefferson County on November 17, 2010. In addition, the February 8, 
2011, submittal adopts a provision that would automatically render 
Jefferson County's Regulation 2.05 or a portion thereof invalid in the 
wake of certain court decisions or other events (the ``automatic 
rescission clause''). Approval of Jefferson County's GHG permitting 
regulations also includes a proposal to simultaneously rescind the 
federal implementation plan (FIP) that EPA promulgated on January 14, 
2011. See 76 FR 2581.
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    \1\ Throughout this document IBR means incorporate or 
incorporates by reference.
    \2\ With respect to the NSR PM2.5 Rule, Phase II Rule 
and NSR Reform, Jefferson County's SIP revisions only address PSD 
requirements at Regulation 2.05. The nonattainment NSR provisions 
for Jefferson County (Regulation 2.04) for these provisions are 
still under development by LMAPCD.
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    On June 6, 2012, EPA published a proposed rulemaking to approve the 
aforementioned changes to Jefferson County's NSR PSD program. See 77 FR 
33363. Comments on the proposed rulemaking were due on or before July 
6, 2012. No comments, adverse or otherwise, were received on EPA's June 
6, 2012, proposed rulemaking. Pursuant to section 110 of the CAA, EPA 
is now taking final action to approve the changes to Jefferson County's 
NSR PSD program as provided in EPA's June 6, 2012, proposed rulemaking. 
A summary of the background for today's final action is provided below. 
EPA's June 6, 2012, proposed rulemaking contains more detailed 
information regarding the Jefferson County SIP revisions being approved 
today. Please refer to the relevant sections in the proposed rulemaking 
for EPA's rationale for this final action. See 77 FR 33363.
    In addition to incorporating the changes discussed above, Jefferson 
County's proposed SIP revisions include PSD permitting provisions that: 
(1) Exclude facilities that produce ethanol through a natural 
fermentation process from the definition of ``chemical process plants'' 
in the major NSR source permitting program as amended in the Ethanol 
Rule, 72 FR 24060 (May 1, 2007); and (2) IBR changes pursuant to EPA's 
Fugitive Emissions Rule, 73 FR 77882 (December 19, 2008).\3\ In today's 
rulemaking, EPA is not taking action on LMAPCD's changes to its PSD 
regulations to adopt provisions promulgated in the Ethanol Rule nor is 
EPA taking action on LMAPCD's changes to incorporate the provisions of 
the Fugitive Emissions Rule.
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    \3\ On March 31, 2010, EPA stayed the Fugitive Emissions Rule 
(73 FR 77882) for 18 months to October 3, 2011, to allow the Agency 
time to propose, take comment and issue a final action regarding the 
inclusion of fugitive emissions in NSR applicability determinations. 
This stay was established as a result of EPA granting the Natural 
Resource Defense Council's petition for reconsideration on the 
original Fugitive Emissions Rule. See 73 FR 77882 (December 19, 
2008). On March 30, 2011 (76 FR 17548), EPA proposed an interim rule 
which superseded the March 31, 2010, stay and clarified and extended 
the stay of the Fugitive Emission Rule until EPA completes its 
reconsideration. The interim rule simply reverts the CFR text back 
to the language that existed prior to the Fugitive Emissions Rule 
changes in the December 19, 2008, rulemaking. EPA plans to issue a 
final rule affirming the interim rule as final. The final rule will 
remain in effect until EPA completes its reconsideration.
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    Jefferson County's practice for revising its PSD regulations is to 
IBR into its SIP the version of the Code of Federal Regulations (at 40 
CFR 52.21) that is in effect as of a specified date. LMAPCD's 
Regulation 2.05 contains the preconstruction review program that 
provides for the prevention of significant deterioration of ambient air 
quality as required under part C of title I of the CAA (the PSD 
program). Jefferson County's June 1, 2009, SIP revision, which provided 
version 9 of LMAPCD's Regulation 2.05, IBR the federal PSD regulations 
as set forth at 40 CFR 52.21, and as amended as of July 1, 2008. 
Subsequently, the February 8, 2011, SIP revision, which provided 
version 10 of LMAPCD's Regulation 2.05, IBR federal PSD regulations as 
set forth at 40 CFR 52.21, and as amended as of July 1, 2010, thereby 
superseding version 9 of Regulation 2.05. Throughout this rulemaking, 
EPA will refer to the June 1, 2009, and February 8, 2011, SIP revisions 
as ``Jefferson County's SIP revisions.'' In effect, the Jefferson 
County SIP revisions change the LMAPCD's IBR date for Regulation 2.05 
to July 1, 2010.

II. EPA's Action on Jefferson County's SIP Revision To Adopt the GHG 
Tailoring Rule

    As mentioned above, on February 8, 2011, KDAQ, on behalf of LMAPCD, 
submitted to EPA a revision to the Jefferson County portion of 
Kentucky's SIP to IBR NSR PSD requirements for GHG. Specifically, the 
February 8, 2011, SIP revision includes changes to LMAPCD's Regulation 
2.05--Prevention of Significant Deterioration of Air Quality (version 
10) to provide authority to LMAPCD to regulate GHG under the PSD 
program, and establishes appropriate PSD applicability thresholds for 
GHGs, consistent with EPA's Tailoring Rule.

[[Page 62152]]

    LMAPCD is currently the SIP-approved permitting authority for the 
PSD program in Jefferson County, Kentucky, and does not interpret its 
current SIP-approved PSD regulations at Regulation 2.05 (i.e., version 
9), which IBR the federal PSD regulations, to be applicable to GHG. In 
letters dated October 4, 2010, and October 19, 2010, LMAPCD notified 
EPA that it did not have the authority to regulate GHG under the PSD 
program, and thus was in the process of revising its regulations (the 
subject of this final action) to provide LMAPCD with this authority. 
The February 8, 2011, SIP revision IBR the federal PSD regulations at 
40 CFR 52.21 as of July 2010 into Jefferson County Regulation 2.05 to 
include the relevant federal GHG Tailoring Rule changes that provide 
LMAPCD with the authority to regulate GHG under the PSD program and 
establish the thresholds for GHG permitting applicability. The GHG 
Tailoring Rule changes that this final action incorporates into the 
Jefferson County portion of Kentucky's SIP define the term ``subject to 
regulation'' for the PSD program and define ``greenhouse gases'' and 
``tons per year (tpy) carbon dioxide equivalent emissions'' 
(CO2e). Additionally, the changes specify the methodology 
for calculating an emissions increase for GHG, the applicable 
thresholds for GHG emissions subject to PSD, and the schedule for when 
the applicability thresholds take effect. See 75 FR at 31606-31607. EPA 
has determined that these provisions, which provide LMAPCD with the 
authority to regulate GHG under the PSD program and establish the 
thresholds for GHG permitting applicability, are consistent with EPA's 
PSD regulations for GHG emitting sources as promulgated in the GHG 
Tailoring Rule and section 110 of the CAA. Therefore, EPA is approving 
the GHG PSD permitting revision into the Jefferson County portion of 
Kentucky's SIP. In addition, EPA is rescinding the FIP promulgated 
January 14, 2011, codified in 40 CFR 52.37(b)(7), that ensures the 
availability of a PSD-permitting authority for GHG-emitting sources in 
Jefferson County, Kentucky. This FIP is no longer necessary since the 
GHG PSD permitting revision is being approved into the Jefferson County 
portion of Kentucky's SIP. Therefore, this final action removes 
Jefferson County from the list at 40 CFR section 52.37.

III. EPA's Action on Jefferson County's SIP Revision To Adopt the NSR 
PM2.5 PSD Permitting Requirements

    Jefferson County's Regulation 2.05--Prevention of Significant 
Deterioration of Air Quality IBR the provisions at 40 CFR 52.21, as 
amended in the NSR PM2.5 Rule for PSD. Specifically, 
Jefferson County's June 1, 2009, and February 8, 2011, SIP revisions 
IBR the following NSR PM2.5 provisions for PSD: (1) 
Requirement for NSR permits to address directly emitted 
PM2.5 and precursor pollutants; (2) significant emission 
rates for direct PM2.5 and precursor pollutants 
(SO2 and NOX); (3) PSD and NNSR requirement of 
states to address condensable PM in establishing enforceable emission 
limits for PM10 or PM2.5; and (4) 
PM2.5 emission offsets regarding the PM10 
``grandfathering'' provision. In the February 8, 2011, SIP revision, 
LMAPCD elected to IBR the grandfathering provision at 40 CFR 
52.21(i)(1)(xi) in its PSD regulations at Regulation 2.05. EPA took 
final action to repeal the PM10 grandfathering provision on 
May 18, 2011. See 76 FR 28646. Therefore, EPA is not taking action to 
approve this provision into the Jefferson County portion of the 
Kentucky SIP. Jefferson County will need to update its PSD provisions 
to reflect the repeal of the PM10 grandfathering provision 
in federal regulations at 40 CFR 52.21. At this time Jefferson County's 
PSD regulations are approvable because they are at least as stringent 
as the current federal regulations and are consistent with section 110 
of the CAA.
    Jefferson County's February 11, 2011, SIP revision also IBR, into 
the Jefferson County portion of the Kentucky SIP, PSD regulations 
regarding the requirement to address condensable PM in applicability 
determinations and in establishing enforceable emission limits in PSD 
and nonattainment NSR permits, as established in the NSR 
PM2.5 Rule. As discussed above in Section III.B, under a 
separate action, EPA has proposed to correct the inadvertent inclusion 
of ``particulate matter emissions'' in the definition of ``regulated 
NSR pollutant'' as an indicator for which condensable emissions must be 
addressed. See 77 FR 75656 (March 16, 2012). Further, on May 14, 2012, 
the Commonwealth of Kentucky, on behalf of LMAPCD, provided a letter to 
EPA with clarification of Jefferson County's intent in light of EPA's 
March 12, 2012, proposed rulemaking. Specifically, in the letter 
Kentucky requested that EPA not approve (into the Jefferson County 
portion of the SIP) the term ``particulate matter emissions'' (at 
Regulation 2.05) as part of the definition for ``regulated NSR 
pollutant'' that condensable emissions be accounted for in 
applicability determinations and in establishing emissions limitations 
for PM. Therefore, given the Commonwealth's and LMAPCD's request and 
EPA's intention to amend the definition of ``regulated NSR pollutant,'' 
EPA is not taking action to approve the terminology ``particulate 
matter emissions'' into the Jefferson County portion of the Kentucky 
SIP (at Regulation 2.05) for the condensable provision at the 
definition of ``regulated NSR pollutant.'' EPA is, however, approving 
into the SIP at Regulation 2.05 the remaining condensable requirement 
at 40 CFR 51.166(b)(49)(vi) that condensable emissions be accounted for 
in applicability determinations and in establishing emissions 
limitations for PM2.5 and PM10. EPA has 
determined that Jefferson County's June 1, 2009, and February 8, 2011, 
SIP revisions are consistent with the NSR PM2.5 Rule for PSD 
and with section 110 of the CAA. See NSR PM2.5 Rule, 75 FR 
31514.

IV. EPA's Analysis of Jefferson County's SIP Revisions To Adopt the 
Phase II Rule

    Jefferson County's June 1, 2009, SIP revision updated LMAPCD's PSD 
program to include NOX as an ozone precursor for PSD 
permitting, consistent with changes to the federal regulations set 
forth in the Phase II Rule at 40 CFR 52.21. Subsequently, on February 
8, 2011, KDAQ submitted a SIP revision which included the June 1, 2009, 
changes in addition to other federal PSD permitting updates to the 
Jefferson County portion of the Kentucky SIP. Jefferson County's SIP 
revisions IBR the federal PSD regulations (at 40 CFR 52.21) to include 
the NOX as a precursor PSD-only permitting provisions 
promulgated in the Phase II Rule into the Jefferson County portion of 
the Kentucky SIP at Regulation 2.05--Prevention of Significant 
Deterioration of Air Quality (version 10) as of July 1, 2010. EPA has 
determined that Jefferson County's SIP revisions are consistent with 
the PSD Phase II Rule permitting requirements and section 110 of the 
CAA.

V. EPA's Action on Jefferson County's SIP Revision To Adopt the Federal 
NSR Reform and Reasonable Possibility Provisions

    As mentioned in Section I, LMAPCD's PSD Program at Regulation 
2.05--Prevention of Significant Deterioration for Air Quality 
establishes the preconstruction review program as

[[Page 62153]]

required under part C of title I of the CAA. The changes to LMAPCD's 
PSD rules, which EPA is now approving into the Jefferson County portion 
of the Kentucky SIP, were established to update the existing PSD 
Program to meet the requirements of the 2002 NSR Reform Rules. 
Jefferson County's SIP revisions IBR the 2002 NSR Reform PSD changes 
regarding baseline actual emissions, actual-to-projected-actual 
applicability tests, and plantwide applicability limit provisions. 
Jefferson County's June 1, 2009, and February 8, 2011, SIP revisions 
both address the federal PSD requirements promulgated in the 2002 NSR 
Reform Rules. The proposed revisions explicitly exclude the pollution 
control projects and clean unit portions of the 2002 NSR Reform Rules 
that were vacated by the D.C. Circuit Court. See New York v. EPA, 413 
F.3d 3 (D.C. Cir. 2005).
    With regard to the remanded portions of the 2002 NSR Reform Rules 
related to recordkeeping and EPA's December 21, 2007, clarification of 
the term ``reasonable possibility'' (72 FR 72607), Jefferson County's 
SIP revisions IBR the federal revised ``reasonable possibility'' 
provisions at 40 CFR 52.21(r)(6). Thus, LMAPCD's recordkeeping and 
reporting provisions are the same as the federal requirements 
promulgated in EPA's December 21, 2007, final action.
    In addition to incorporating the federal PSD regulations, Jefferson 
County's February 8, 2011, SIP revision includes a technical support 
document (TSD), which assesses the impact of adopting the 2002 NSR 
Reform provisions into Jefferson County's PSD permitting program and 
the air quality impacts. As mentioned above, LMAPCD has a SIP-approved 
PSD program. However, due to the limited number of sources in Jefferson 
County, the permitting program does not assess many major PSD permits. 
In fact, in nearly ten years, LMAPCD has only analyzed two projects 
under PSD. Most sources in Jefferson County are permitted through 
LMAPCD's minor source program, which allows sources to take emission 
limits to avoid PSD permitting. Additionally, regarding criteria 
pollutants, the TSD explains that sources typically subject to PSD 
permitting (i.e., point sources) have not been the primary driver for 
past or current nonattainment NAAQS designations in Jefferson County. 
See the TSD in the Docket ID No. EPA-R04-OAR-2011-0227.
    LMAPCD's TSD concluded that adoption of the 2002 NSR Reform 
improvements would not impede the LMAPCD's ability to comply with the 
NAAQS or any reasonable progress towards continued maintenance. After 
evaluating Jefferson County's SIP revision and the TSD provided with 
the February 8, 2011, SIP revision, EPA has determined that the SIP 
revisions to adopt NSR Reform and reasonable possibility provisions are 
consistent with the requirements for the preparation, adoption and 
submittal of implementation plans for the federal PSD program at 40 CFR 
52.21 and the 2002 NSR Reform Rule.

VI. EPA's Action for Jefferson County's Automatic Rescission Clause

    Jefferson County's February 8, 2011, SIP revision adds a new 
section to Regulation 2.05, Section 2 ``Effect of Stay, Vacatur, or 
Withdrawal,'' also known as an automatic rescission clause. This clause 
provides that in the event that EPA or a federal court stays, vacates, 
or withdraws any section or subsection of 40 CFR 52.21, that section or 
subsection shall automatically be deemed stayed, vacated or withdrawn 
from Jefferson County's SIP-approved PSD program at Regulation 2.05. 
The period of delay resulting from a stay would begin and end for 
purposes of Jefferson County's SIP on the date specified by EPA in a 
Federal Register notice announcing the stay. Likewise, any provision 
that is vacated or withdrawn shall be null and void for purposes of 
Jefferson County's SIP as of the date specified in the notice of 
vacatur or withdrawal published by EPA in a Federal Register notice.
    EPA has determined that Jefferson County's automatic rescission 
clause is approvable. In assessing the approvability of this provision, 
EPA considered two key factors: (1) Whether the public will be given 
reasonable notice of any change to the SIP that occurs as a result of 
the automatic rescission clause, and (2) whether any future change to 
the SIP that occurs as a result of the automatic rescission clause 
would be consistent with EPA's interpretation of the effect of the 
triggering EPA or federal court action (e.g., the extent of an 
administrative or judicial stay). These criteria are derived from the 
SIP revision procedures set forth in the CAA and federal regulations.
    Regarding public notice, CAA section 110(l) provides that any 
revision to a SIP submitted by a state to EPA for approval ``shall be 
adopted by such State after reasonable notice and public hearing.'' In 
accordance with CAA section 110(l), the LMAPCD followed applicable 
notice-and-comment procedures prior to adopting the automatic 
rescission clause. Thus, the public is on notice that the Jefferson 
County portion of the Kentucky SIP will automatically update to reflect 
any EPA or federal action that stays, withdraws, or vacates any portion 
of 40 CFR 52.21. In addition, the automatic rescission clause provides 
that no change to the SIP will occur until EPA publishes a Federal 
Register notice announcing that a portion of 40 CFR 52.21 has been 
stayed, vacated, or withdrawn. Thus, the timing and extent of any 
future SIP change resulting from the automatic rescission clause will 
be clear to both the regulated community and the general public.
    EPA's consideration of whether any SIP change resulting from the 
proposed automatic rescission clause would be consistent with EPA's 
interpretation of the effect of the triggering action on federal 
regulations is based on 40 CFR 51.105. Under 40 CFR 51.105, 
``[r]evisions of a plan, or any portion thereof, will not be considered 
part of an applicable plan until such revisions have been approved by 
the Administrator in accordance with this part.'' See 40 CFR 51.105. 
While EPA is approving the automatic updating of the Jefferson County 
portion of the Kentucky SIP to reflect the stay, withdrawal or vacatur 
of any section or subsection of 40 CFR 52.21, there could be varying 
interpretations of the timing and extent of changes to 40 CFR 52.21 
resulting from a given EPA or federal court action. By tying the 
automatic updating of the SIP to EPA's publication of a Federal 
Register notice announcing the change to 40 CFR 52.21, the automatic 
rescission clause ensures that any change to the SIP will be consistent 
with EPA's interpretation of the triggering action.

VII. Final Action

    Pursuant to section 110 of the CAA, EPA is taking final action to 
approve Jefferson County's June 1, 2009, and February 8, 2011, SIP 
revisions which IBR (into the Jefferson County portion of the Kentucky 
SIP) federal requirements for NSR PSD permitting. Jefferson County's 
SIP revisions consist of changes to the LMAPCD Air Quality Regulation 
2.05--Prevention of Significant Deterioration of Air Quality and 
address several NSR PSD permitting requirements promulgated at 40 CFR 
52.21. Specifically, Jefferson County's June 1, 2009, SIP revision 
adopts federal regulations relating to PSD requirements for the NSR 
PM2.5 Rule, the Phase II Rule, the 2002 NSR Reform Rule, and 
the NSR Reasonable Possibility Rule into the Jefferson County portion 
of the Kentucky SIP. Jefferson County's February 8, 2011, SIP revision 
includes all of the aforementioned updates to

[[Page 62154]]

LMAPCD's PSD regulations but also provides Jefferson County with the 
authority to regulate GHG emissions under its PSD program, establishes 
appropriate emissions thresholds for determining PSD applicability with 
respect to new and modified GHG-emitting sources (in accordance with 
EPA's Tailoring Rule), and incorporates an automatic rescission clause 
for 40 CFR 52.21 regulations. EPA has determined that these SIP 
revisions are approvable because they are consistent with the CAA and 
EPA regulations regarding PSD permitting. In addition, EPA is 
rescinding the FIP promulgated on January 14, 2011, at 40 CFR 
52.37(b)(7); therefore, this final rule removes Jefferson County from 
the PSD GHG FIP listing at 40 CFR section 52.37.

VIII. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting federal requirements and 
does not impose additional requirements beyond those imposed by 
Commonwealth law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, this rule does not have tribal implications as specified 
by Executive Order 13175 (65 FR 67249, November 9, 2000), because the 
SIP is not approved to apply in Indian country located in the state, 
and EPA notes that it will not impose substantial direct costs on 
tribal governments or preempt tribal law.
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by December 11, 2012. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this action for the purposes of judicial review nor 
does it extend the time within which a petition for judicial review may 
be filed, and shall not postpone the effectiveness of such rule or 
action. This action may not be challenged later in proceedings to 
enforce its requirements. See section 307(b)(2).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Greenhouse gases, 
Incorporation by reference, Intergovernmental relations, Particulate 
matter, Nitrogen Oxides, Reporting and recordkeeping requirements and 
Volatile organic compounds.

    Dated: September 12, 2012.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.

    40 CFR part 52 is amended 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 A--General Provisions

Sec.  52.37  [Amended]

0
2. Section 52.37 is amended by removing and reserving paragraph (b)(7).

Subpart S--Kentucky

0
3. Section 52.920(c) Table 2 is revised to read as follows:

Sec.  52.920  Identification of plan.

* * * * *
    (c) * * *

                         Table 2--EPA-Approved Jefferson County Regulations for Kentucky
----------------------------------------------------------------------------------------------------------------
                                                                 Federal
         Reg               Title/subject      EPA approval      Register        District         Explanation
                                                  date           notice      effective date
----------------------------------------------------------------------------------------------------------------
                                            Reg 1--General Provisions
----------------------------------------------------------------------------------------------------------------
1.01.................  General Application         10/23/01     66 FR 53660        03/17/99  ...................
                        of Regulations and
                        Standards.
1.02.................  Definitions.........        11/19/02     67 FR 69688        12/19/01  ...................
1.03.................  Abbreviations and           11/19/02     67 FR 69688        05/15/02  ...................
                        Acronyms.
1.04.................  Performance Tests...        10/23/01     66 FR 53660        11/19/97  ...................
1.05.................  Compliance with             10/23/01     66 FR 53660        11/18/92  ...................
                        Emission Standards
                        and Maintenance
                        Requirements.

[[Page 62155]]

 
1.06.................  Source Self-                10/23/01     66 FR 53660        12/15/93  ...................
                        Monitoring and
                        Reporting.
1.07.................  Emissions During            10/23/01     66 FR 53660        01/17/96  ...................
                        Startups,
                        Shutdowns,
                        Malfunctions and
                        Emergencies.
1.08.................  Administrative              11/03/03     68 FR 62236        06/19/02  ...................
                        Procedures.
1.09.................  Prohibition of Air          10/23/01     66 FR 53660        11/16/83  ...................
                        Pollution.
1.10.................  Circumvention.......        10/23/01     66 FR 53660        04/19/72  ...................
1.11.................  Control of Open             10/23/01     66 FR 53660        02/22/90  ...................
                        Burning.
1.14.................  Control of Fugitive         10/23/01     66 FR 53660        01/20/88  ...................
                        Particulate
                        Emissions.
1.18.................  Rule Effectiveness..        10/23/01     66 FR 53689        09/21/94  ...................
1.19.................  Administrative              11/19/02     67 FR 69688        05/15/02  ...................
                        Hearings.
----------------------------------------------------------------------------------------------------------------
                                           Reg 2--Permit Requirements
----------------------------------------------------------------------------------------------------------------
2.01.................  General Application.        10/23/01     66 FR 53660        04/21/82  ...................
2.02.................  Air Pollution               10/23/01     66 FR 53660        06/21/95  ...................
                        Regulation
                        Requirements and
                        Exemptions.
2.03.................  Permit Requirements--       10/23/01     66 FR 53660        12/15/93  ...................
                        Non-Title V
                        Construction and
                        Operating Permits
                        and Demolition/
                        Renovation Permits.
2.04.................  Construction or             10/23/01     66 FR 53660        03/17/93  ...................
                        Modification of
                        Major Sources in or
                        Impacting Upon Non-
                        Attainment Areas
                        (Emission Offset
                        Requirements).
2.05.................  Prevention of               10/12/12         [Insert        11/17/10  This approval does
                        Significant                             citation of                   not include
                        Deterioration of                       publication]                   Jefferson County's
                        Air Quality.                                                          revisions to
                                                                                              incorporate by
                                                                                              reference the
                                                                                              Ethanol Rule (72
                                                                                              FR 24060, May 1,
                                                                                              2007), Fugitives
                                                                                              Emissions Rule (73
                                                                                              FR 77882, December
                                                                                              19, 2008), the
                                                                                              PM10
                                                                                              Grandfathering
                                                                                              Provision and the
                                                                                              term ``particulate
                                                                                              matter emissions''
                                                                                              (at 40 CFR
                                                                                              52.21(i)(1)(xi)
                                                                                              and
                                                                                              51.166(b)(49)(vi)
                                                                                              respectively in
                                                                                              the NSR PM2.5 Rule
                                                                                              (73 FR 28321, May
                                                                                              16, 2008).
2.06.................  Permit Requirements--       10/23/01     66 FR 53660        11/16/83  ...................
                        Other Sources.
2.07.................  Public Notification         10/23/01     66 FR 53660        06/21/95  ...................
                        for Title V, PSD,
                        and Offset Permits;
                        SIP Revisions; and
                        Use of Emission
                        Reduction Credits.
2.09.................  Causes for Permit           11/03/03     68 FR 62236        06/19/02  ...................
                        Suspension.
2.10.................  Stack Height                10/23/01     66 FR 53660        07/19/89  ...................
                        Considerations.
2.11.................  Air Quality Model           10/23/01     66 FR 53660        05/19/99  ...................
                        Usage.
2.17.................  Federally                   11/03/03     68 FR 62236        06/19/02  ...................
                        Enforceable
                        District Origin
                        Operating Permits.
----------------------------------------------------------------------------------------------------------------
                                      Reg 3--Ambient Air Quality Standards
----------------------------------------------------------------------------------------------------------------
3.01.................  Purpose of Standards        10/23/01     66 FR 53660        06/13/79  ...................
                        and Expression of
                        Non-Degradation
                        Intention.
3.02.................  Applicability of            10/23/01     66 FR 53660        06/13/79  ...................
                        Ambient Air Quality
                        Standards.
3.03.................  Definitions.........        10/23/01     66 FR 53660        06/13/79  ...................
3.04.................  Ambient Air Quality         10/23/01     66 FR 53660        04/20/88  ...................
                        Standards.
3.05.................  Methods of                  10/23/01     66 FR 53660        04/20/88  ...................
                        Measurement.
----------------------------------------------------------------------------------------------------------------
                                            Reg 4--Emergency Episodes
----------------------------------------------------------------------------------------------------------------
4.01.................  General Provisions          10/23/01     66 FR 53660        06/13/79  ...................
                        for Emergency
                        Episodes.
4.02.................  Episode Criteria....        10/23/01     66 FR 53660        04/20/88  ...................
4.03.................  General Abatement           10/23/01     66 FR 53660        02/16/83  ...................
                        Requirements.
4.04.................  Particulate and             10/23/01     66 FR 53660        04/19/72  ...................
                        Sulfur Dioxide
                        Reduction
                        Requirements.

[[Page 62156]]

 
4.05.................  Hydrocarbon and             10/23/01     66 FR 53660        02/16/83  ...................
                        Nitrogen Oxides
                        Reduction
                        Requirements.
4.06.................  Carbon Monoxide             10/23/01     66 FR 53660        02/16/83  ...................
                        Reduction
                        Requirements.
4.07.................  Episode Reporting           10/23/01     66 FR 53660        06/13/79  ...................
                        Requirements.
----------------------------------------------------------------------------------------------------------------
                        Reg 6--Standards of Performance for Existing Affected Facilities
----------------------------------------------------------------------------------------------------------------
6.01.................  General Provisions..        10/23/01     66 FR 53660        11/16/83  ...................
6.02.................  Emission Monitoring         10/23/01     66 FR 53660        11/16/83  ...................
                        for Existing
                        Sources.
6.07.................  Standards of                10/23/01     66 FR 53660        06/13/79  ...................
                        Performance for
                        Existing Indirect
                        Heat Exchangers.
6.08.................  Standard of                 10/23/01     66 FR 53660        06/13/79  ...................
                        Performance for
                        Existing
                        Incinerators.
6.09.................  Standards of                10/23/01     66 FR 53660        03/17/99  ...................
                        Performance for
                        Existing Process
                        Operations.
6.10.................  Standard of                 10/23/01     66 FR 53660        11/16/83  ...................
                        Performance for
                        Existing Process
                        Gas Streams.
6.12.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Asphalt
                        Paving Operations.
6.13.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Storage
                        Vessels for
                        Volatile Organic
                        Compounds.
6.14.................  Standard of                 10/23/01     66 FR 53661        04/21/82  ...................
                        Performance for
                        Selected Existing
                        Petroleum Refining
                        Processes and
                        Equipment.
6.15.................  Standard of                 01/25/80      45 FR 6092        06/13/79  ...................
                        Performance for
                        Gasoline Transfer
                        to Existing Service
                        Station Storage
                        Tanks (Stage I
                        Vapor Recovery).
6.16.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Large
                        Appliance Surface
                        Coating Operations.
6.17.................  Standard of                 10/23/01     66 FR 53661        11/18/92  ...................
                        Performance for
                        Existing Automobile
                        and Truck Surface
                        Coating Operations.
6.18.................  Standards of                11/19/02     67 FR 69688        05/15/02  ...................
                        Performance for
                        Existing Solvent
                        Metal Cleaning
                        Equipment.
6.19.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Metal
                        Furniture Surface
                        Coating Operations.
6.20.................  Standard of                 10/23/01     66 FR 53661        11/16/83  ...................
                        Performance for
                        Existing Bulk
                        Gasoline Plants.
6.21.................  Standard of                 10/23/01     66 FR 53661        11/16/83  ...................
                        Performance for
                        Existing Gasoline
                        Loading Facilities
                        at Bulk Terminals.
6.22.................  Standard of                 10/23/01     66 FR 53661        03/17/93  ...................
                        Performance for
                        Existing Volatile
                        Organic Materials
                        Loading Facilities.
6.24.................  Standard of                 10/23/01     66 FR 53661        03/17/93  ...................
                        Performance for
                        Existing Sources
                        Using Organic
                        Materials.
6.26.................  Standards of                10/23/01     66 FR 53661        06/13/79  ...................
                        Performance for
                        Existing Volatile
                        Organic Compound
                        Water Separators.
6.27.................  Standards of                10/23/01     66 FR 53661        06/13/79  ...................
                        Performance for
                        Existing Liquid
                        Waste Incinerators.
6.28.................  Standard of                 10/23/01     66 FR 53661        03/18/81  ...................
                        Performance for
                        Existing Hot Air
                        Aluminum
                        Atomization
                        Processes.
6.29.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Graphic
                        Arts Facilities
                        Using Rotogravure
                        and Flexography.
6.30.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Factory
                        Surface Coating
                        Operations of Flat
                        Wood Paneling.

[[Page 62157]]

 
6.31.................  Standard of                 10/23/01     66 FR 53661        04/23/96  ...................
                        Performance for
                        Existing
                        Miscellaneous Metal
                        Parts and Products
                        Surface-Coating
                        Operations.
6.32.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Leaks from Existing
                        Petroleum Refinery
                        Equipment.
6.33.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing
                        Synthesized
                        Pharmaceutical
                        Product
                        Manufacturing
                        Operations.
6.34.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Pneumatic
                        Rubber Tire
                        Manufacturing
                        Plants.
6.35.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for
                        Existing Fabric,
                        Vinyl and Paper
                        Surface Coating
                        Operations.
6.38.................  Standard of                 10/23/01     66 FR 53661        12/17/86  ...................
                        Performance for
                        Existing Air
                        Oxidation Processes
                        in Synthetic
                        Organic Chemical
                        Manufacturing
                        Industries.
6.39.................  Standard of                 10/23/01     66 FR 53661        07/17/96  ...................
                        Performance for
                        Equipment Leaks of
                        Volatile Organic
                        Compounds in
                        Existing Synthetic
                        Organic Chemical
                        and Polymer
                        Manufacturing
                        Plants.
6.40.................  Standards of                10/23/01     66 FR 53661        08/18/93  ...................
                        Performance for
                        Gasoline Transfer
                        to Motor Vehicles
                        (Stage II Vapor
                        Recovery and
                        Control).
6.42.................  Reasonably Available        10/23/01     66 FR 53661        03/17/99  ...................
                        Control Technology
                        Requirements for
                        Major Volatile
                        Organic Compound-
                        and Nitrogen Oxides-
                        Emitting Facilities.
6.43.................  Volatile Organic            10/23/01     66 FR 53689        05/21/97  ...................
                        Compound Reduction
                        Requirements.
6.45.................  Standards of                10/23/01     66 FR 53689        02/02/94  ...................
                        Performance for
                        Existing Solid
                        Waste Landfills.
6.44.................  Standards of                10/23/01     66 FR 53661        09/20/95  ...................
                        Performance for
                        Existing Commercial
                        Motor Vehicle and
                        Mobile Equipment
                        Refinishing
                        Operations.
6.46.................  Standards of                10/23/01     66 FR 53661        12/21/94  ...................
                        Performance for
                        Existing Ferroalloy
                        and Calcium Carbide
                        Production
                        Facilities.
6.48.................  Standard of                 10/23/01     66 FR 53661        07/19/95  ...................
                        Performance for
                        Existing Bakery
                        Oven Operations.
6.49.................  Standards of                10/23/01     66 FR 53664        06/20/01  ...................
                        Performance for
                        Reactor Processes
                        and Distillation
                        Operations
                        Processes in the
                        Synthetic Organic
                        Chemical
                        Manufacturing
                        Industry.
6.50.................  NOX Requirements for        11/19/02     67 FR 69688        03/20/02  ...................
                        Portland Cement
                        Kilns.
----------------------------------------------------------------------------------------------------------------
                           Reg 7--Standards of Performance for New Affected Facilities
----------------------------------------------------------------------------------------------------------------
7.01.................  General Provisions..        10/23/01     66 FR 53661        05/17/00  ...................
7.06.................  Standards of                10/23/01     66 FR 53661        04/21/82  ...................
                        Performance for New
                        Indirect Heat
                        Exchangers.
7.07.................  Standard of                 10/23/01     66 FR 53661        09/15/93  ...................
                        Performance for New
                        Incinerators.
7.08.................  Standards of                10/23/01     66 FR 53661        03/17/99  ...................
                        Performance for New
                        Process Operations.
7.09.................  Standards of                10/23/01     66 FR 53661        06/18/97  ...................
                        Performance for New
                        Process Gas Streams.
7.11.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for New
                        Asphalt Paving
                        Operations.
7.12.................  Standard of                 10/23/01     66 FR 53661        05/15/91  ...................
                        Performance for New
                        Storage Vessels for
                        Volatile Organic
                        Compounds.

[[Page 62158]]

 
7.14.................  Standard of                 10/23/01     66 FR 53661        06/13/79  ...................
                        Performance for
                        Selected New
                        Petroleum Refining
                        Processes and
                        Equipment.
7.15.................  Standards of                10/23/01     66 FR 53662        04/20/88  ...................
                        Performance for
                        Gasoline Transfer
                        to New Service
                        Station Storage
                        Tanks (Stage I
                        Vapor Recovery).
7.18.................  Standards of                10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for New
                        Solvent Metal
                        Cleaning Equipment.
7.20.................  Standard of                 10/23/01     66 FR 53662        11/16/83  ...................
                        Performance for New
                        Gasoline Loading
                        Facilities at Bulk
                        Plants.
7.22.................  Standard of                 10/23/01     66 FR 53662        03/17/93  ...................
                        Performance for New
                        Volatile Organic
                        Materials Loading
                        Facilities.
7.25.................  Standard of                 10/23/01     66 FR 53662        03/17/93  ...................
                        Performance for New
                        Sources Using
                        Volatile Organic
                        Compounds.
7.34.................  Standard of                 10/23/01     66 FR 53662        06/13/79  ...................
                        Performance for New
                        Sulfite Pulp Mills.
7.35.................  Standard of                 10/23/01     66 FR 53662        06/13/79  ...................
                        Performance for New
                        Ethylene Producing
                        Plants.
7.36.................  Standard of                 10/23/01     66 FR 53662        06/13/79  ...................
                        Performance for New
                        Volatile Organic
                        Compound Water
                        Separators.
7.51.................  Standard of                 10/23/01     66 FR 53662        01/20/88  ...................
                        Performance for New
                        Liquid Waste
                        Incinerators.
7.52.................  Standard of                 10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for New
                        Fabric, Vinyl, and
                        Paper Surface
                        Coating Operations.
7.55.................  Standard of                 10/23/01     66 FR 53662        03/17/93  ...................
                        Performance for New
                        Insulation of
                        Magnet Wire.
7.56.................  Standard of                 10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for
                        Leaks from New
                        Petroleum Refinery
                        Equipment.
7.57.................  Standard of                 10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for New
                        Graphic Arts
                        Facilities Using
                        Rotogravure and
                        Flexography.
7.58.................  Standard of                 10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for New
                        Factory Surface
                        Coating Operations
                        of Flat Wood
                        Paneling.
7.59.................  Standard of                 10/23/01     66 FR 53662        04/23/96  ...................
                        Performance for New
                        Miscellaneous Metal
                        Parts and Products
                        Surface Coating
                        Operations.
7.60.................  Standard of                 10/23/01     66 FR 53662        05/15/91  ...................
                        Performance for New
                        Synthesized
                        Pharmaceutical
                        Product
                        Manufacturing
                        Operations.
7.77.................  Standards of                10/23/01     66 FR 53662        10/20/93  ...................
                        Performance for New
                        Blast Furnace
                        Casthouses.
7.79.................  Standards of                10/23/01     66 FR 53690        02/02/94  ...................
                        Performance for New
                        Commercial Motor
                        Vehicles and Mobile
                        Equipment
                        Refinishing
                        Operations.
7.81.................  Standard of                 10/23/01     66 FR 53662        05/17/00  ...................
                        Performance for New
                        or Modified Bakery
                        Oven Operations.
----------------------------------------------------------------------------------------------------------------
                                     Reg 8--Mobile Source Emissions Control
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. 2012-24096 Filed 10-11-12; 8:45 am]
BILLING CODE 6560-50-P
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