```

[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Proposed Rules]
[Pages 38992-38999]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14102]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R03-OAR-2008-0603; FRL-9947-67-Region 3]

Approval and Promulgation of Air Quality Implementation Plans; 
Pennsylvania; Philadelphia County Reasonably Available Control 
Technology Under the 1997 8-Hour Ozone National Ambient Air Quality 
Standards

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve state implementation plan (SIP) revisions submitted by the 
Commonwealth of Pennsylvania. These revisions pertain to a 
demonstration that Philadelphia County (Philadelphia) meets the 
requirements for reasonably available control technology (RACT) of the 
Clean Air Act (CAA) for nitrogen oxides (NOX) and volatile 
organic compounds (VOC) as ozone precursors for the 1997 8-hour ozone 
national ambient air quality standards (NAAQS). In this rulemaking 
action, EPA is proposing to approve three separate SIP revisions 
addressing RACT under the 1997 8-hour ozone NAAQS for Philadelphia, 
including new or revised source-specific RACT determinations for 
fifteen major sources of NOX and/or VOC and certifications 
that certain previous source-specific RACT determinations for major 
sources of NOX and/or VOC continue to adequately represent 
RACT under the 1997 8-hour ozone NAAQS. EPA also proposes to convert 
the prior conditional approval of the Philadelphia RACT demonstration 
for the 1997 8-hour ozone NAAQS to full approval, as Pennsylvania has 
met the obligations associated with the conditional approval. EPA 
therefore proposes to find that Pennsylvania has met all applicable 
RACT requirements under the CAA for the 1997 8-hour ozone NAAQS for 
Philadelphia. This action is being taken under the CAA.

DATES: Written comments must be received on or before July 15, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R03-
OAR-2008-0603 at http://www.regulations.gov, or via email to 
Fernandez.cristina@epa.gov. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed

[[Page 38993]]

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.

FOR FURTHER INFORMATION CONTACT: Emlyn V[eacute]lez-Rosa, (215) 814-
2038, or by email at velez-rosa.emlyn@epa.gov.

SUPPLEMENTARY INFORMATION: On June 27, 2014, February 18, 2015, and 
April 26, 2016, the Pennsylvania Department of Environmental Protection 
(PADEP) submitted on behalf of Philadelphia Air Management Services 
(AMS) three separate revisions to its SIP to satisfy the RACT 
requirements for the 1997 8-hour ozone NAAQS for Philadelphia. 
Altogether, the Philadelphia RACT SIP revisions are intended to fulfill 
the conditions in EPA's December 13, 2013 conditional approval. 78 FR 
75902.

I. Background

A. General

    Ground level ozone pollution (commonly referred to as smog) is 
formed when VOC react with NOX in the presence of sunlight. 
In order to reduce ozone concentrations in the ambient air, the CAA 
requires all nonattainment areas to apply controls on VOC and 
NOX emission sources to achieve emission reductions. Among 
effective control measures, RACT controls are a major group for 
reducing VOC and NOX emissions from stationary sources.
    Since the 1970's, EPA has consistently interpreted RACT to mean the 
lowest emission limit that a particular source is capable of meeting by 
the application of the control technology that is reasonably available 
considering technological and economic feasibility.\1\ Section 
172(c)(1) of the CAA provides that SIPs for nonattainment areas must 
include reasonably available control measures (RACM) for attainment of 
the NAAQS, including emissions reductions from existing sources through 
adoption of RACT. Sections 182(b)(2) and (f)(1) of the CAA require 
states with moderate, or worse, ozone nonattainment areas to implement 
RACT controls on each category of stationary sources covered by a 
control technique guideline (CTG) document issued by EPA and on all 
major stationary sources of VOC and NOX emissions located in 
the area.\2\ Pursuant to section 184(b) of the CAA, the same 
requirements for sources of NOX and VOC apply to any areas 
in an ozone transport region (OTR) established under section 184(a), 
therefore including marginal and moderate nonattainment areas as well 
attainment areas within an OTR. A single OTR has been established, 
comprised of 12 eastern states, or portions thereof, and the District 
of Columbia (hereafter, ``the OTR''). The entire Commonwealth of 
Pennsylvania is part of the OTR.
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    \1\ See 44 FR 53782 (September 17, 1979); EPA's 1976 memorandum 
from Roger Strelow, Assistant Administrator for Air and Waste 
Management to Regional Administrators, ``Guidance for Determining 
Acceptability of SIP Regulations in Non-attainment Areas'' (December 
9, 1976); and also, 72 FR 20586, 20610 (April 25, 2007).
    \2\ A major source in an ozone nonattainment area is defined as 
any stationary source that emits or has the potential to emit 
NOX and VOC emissions above a certain applicability 
threshold that is based on the classification of the ozone 
nonattainment area. See ``major stationary source'' in 40 CFR 
51.165.
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    On July 18, 1997 (62 FR 38856), EPA revised the NAAQS for ground-
level ozone, setting at 0.08 parts per million (ppm) averaged over an 
8-hour time frame. On April 15, 2004, EPA issued final designations for 
the 1997 8-hour ozone NAAQS, which included Philadelphia County as part 
of the Philadelphia-Wilmington-Atlantic City, PA-NJ-MD-DE moderate 
ozone nonattainment area. 69 FR 23858, at 23931 (April 30, 2004). At 
the same time, EPA published the first phase of its final rule to 
implement the 1997 8-hour ozone NAAQS (Phase I Ozone Implementation 
Rule), in which EPA revoked the previous 1-hour ozone NAAQS for most 
areas of the country, effective on June 15, 2005, and established anti-
backsliding principles to transition from implementing the revoked 1-
hour ozone NAAQS to the more protective 1997 8-hour ozone NAAQS, as 
codified in 40 CFR 51.905.\3\ The nonattainment designation for 
Philadelphia under the 1997 8-hour ozone NAAQS, and its location in the 
OTR, triggered the Commonwealth's obligation to submit a SIP revision 
addressing how it meets the CAA RACT requirements in Philadelphia under 
the standard.
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    \3\ ``Final Rule to Implement the 8-Hour Ozone National Ambient 
Air Quality Standard--Phase 1,'' 69 FR 23951 (April 30, 2001).
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    On March 12, 2008 (73 FR 16436), EPA significantly strengthened the 
8-hour ozone NAAQS by revising the primary 8-hour ozone standard to a 
level of 0.075 ppm. On March 6, 2015 (80 FR 12264), EPA published a 
final rule for the implementation of the 2008 8-hour ozone NAAQS, while 
at the same time revoking the 1997 8-hour ozone NAAQS, effective on 
April 6, 2015.\4\ Consistent with EPA's previous approach, the 2008 8-
Hour Ozone Implementation Rule established anti-backsliding principles 
to transition from implementing the revoked 1997 8-hour ozone NAAQS to 
the 2008 8-hour ozone NAAQS, as codified in 40 CFR 51.1100. In this 
rule, EPA clarified that RACT under the 1997 8-hour ozone NAAQS, among 
other requirements, continues to apply to a nonattainment area, in 
accordance with its designation and classification for the 1997 8-hour 
ozone NAAQS at the time of the revocation of the standard. Therefore, 
1997 8-hour ozone RACT continues to be an applicable requirement for 
Philadelphia.
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    \4\ ``Implementation of the 2008 National Ambient Air Quality 
Standards for Ozone: State Implementation Plan Requirements'' Final 
Rule, 80 FR 12264 (March 6, 2015).
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    The implementation of RACT controls under the 1997 8-hour ozone 
NAAQS is required in Philadelphia for each category of VOC sources 
covered by a CTG document issued by EPA (i.e., CTG RACT) and all other 
major stationary sources of NOX and VOC (major source RACT 
or non-CTG RACT), as defined for a moderate nonattainment area. 
Philadelphia was also subject to the CAA RACT requirements under the 1-
hour ozone NAAQS, as it was designated as part of the Philadelphia-
Wilmington-Trenton, PA-NJ-DE-MD severe ozone nonattainment area under 
the 1-hour ozone NAAQS. See 56 FR 56694, 56822 (November 6, 1991). As a 
result, PADEP and AMS implemented numerous RACT controls in 
Philadelphia to meet the statutory RACT requirements under this 
previous standard.

B. EPA's Requirements Under the 1997 8-Hour Ozone RACT

    On November 29, 2005, EPA published the second phase to its 
implementation rule to address nonattainment SIP requirements for the 
1997 8-hour ozone NAAQS (the Phase 2

[[Page 38994]]

Ozone Implementation Rule).\5\ This rule addressed, among other things, 
control and planning obligations as they apply to nonattainment areas 
under the 1997 8-hour ozone NAAQS, including RACT and RACM. In this 
rule, EPA specifically required that states meet the RACT requirements 
under the 1997 8-hour ozone NAAQS, either through a certification that 
previously adopted RACT controls in their SIP revisions approved by EPA 
under the 1-hour ozone NAAQS continue to represent adequate RACT 
control levels for 1997 8-hour ozone NAAQS attainment purposes, or 
through the adoption of new or more stringent regulations that 
represent RACT control levels.\6\ A certification must be accompanied 
by appropriate supporting information such as consideration of 
information received during the public comment period and consideration 
of new data. Adoption of new RACT regulations should occur when states 
have new stationary sources not covered by existing RACT regulations, 
or when new data or technical information indicates that a previously 
adopted RACT measure does not represent a newly available RACT control 
level. EPA also requires states to submit a negative declaration if 
there are no CTG major sources of VOC and NOX emissions 
within the nonattainment area in lieu of or in addition to a 
certification.
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    \5\ ``Final Rule to Implement the 8-Hour Ozone National Ambient 
Air Quality Standard--Phase 2,'' 70 FR 71612-71705 (November 29, 
2005).
    \6\ For more information, see the preamble of the final Phase 2 
Ozone Implementation Rule for a discussion of EPA's interpretation 
of the CAA RACT requirements for the 1997 8-hour ozone NAAQS, in 70 
FR 71652-71659 (November 29, 2005).
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    EPA particularly addressed controls for NOX emissions 
from electric generating units (EGUs) in the Phase 2 Ozone 
Implementation Rule. EPA determined that the regional NOX 
emissions reductions that result from either the NOX SIP 
Call or the Clean Air Interstate Rule (CAIR) for addressing interstate 
transport of ozone pollution, would meet the NOX RACT 
requirement for EGUs located in states included within the respective 
geographic regions. Thus, EPA concluded that the states did not need to 
perform a NOX RACT analysis for sources subject to the 
state's emission cap-and-trade program where such program has been 
adopted by the state and approved by EPA as meeting the NOX 
SIP Call requirements or, in states achieving the CAIR reductions 
solely from EGUs, the CAIR NOX requirements.
    In November 2008, several parties challenged the Phase 2 Ozone 
Implementation Rule, particularly, EPA's determination that compliance 
by EGUs with the requirements of the NOX SIP and/or CAIR 
could also be construed as compliance with RACT under the 1997 8-hour 
ozone NAAQS. As a result of this litigation, the United States Court of 
Appeals for the District of Columbia Circuit (D.C. Circuit) decided 
that such presumptions and determinations by EPA in the Phase 2 Ozone 
Implementation Rule were inconsistent with the statutory requirements 
of section 172(c)(1) of the CAA. Because region-wide RACT-level 
emissions reductions do not meet the statutory requirement that the 
reductions be from sources in the nonattainment area, the D.C. Circuit 
found that EPA had not shown that compliance with NOX SIP 
Call would result in at least RACT-level reductions in emissions from 
sources within each nonattainment area. See NRDC v. EPA, 571 F.3d 1245 
(D.C. Cir. 2009).\7\
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    \7\ The D.C. Circuit addressed whether reductions from the 
NOX SIP call could address NOX RACT. The issue 
as to whether CAIR satisfies NOX RACT for EGUs was not 
addressed by the D.C. Circuit because the D.C. Circuit had already 
remanded CAIR to EPA for further analysis at that time. See North 
Carolina v. EPA, 531 F.3d 896; modified by 550 F.3d 1176 (D.C. Cir. 
2008). In subsequent litigation, the rule that EPA promulgated to 
replace CAIR (i.e., the Cross State Air Pollution Rule or CSAPR) was 
initially vacated by the D.C. Circuit but upheld by the U.S. Supreme 
Court. EPA v. EME Homer City Generation, L.P., 134 S. Ct. 1584 
(2014). EPA began implementing CSAPR in January 2015. See 79 FR 
71663 (December 3, 2014) (interim final rulemaking issued after D.C. 
Circuit lifted stay on CSAPR). Thus, EPA decided it would be 
appropriate to reconsider its prior determination that CAIR could 
satisfy NOX RACT in light of the earlier decision in NRDC 
v. EPA. See 79 FR 32892 (June 9, 2014) (proposing removal of prior 
determination that CAIR could be NOX RACT).
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C. EPA's Conditional Approval for Philadelphia's 1997 8-Hour Ozone RACT 
Demonstration

    On September 29, 2006, PADEP submitted, on behalf of AMS, a SIP 
revision purporting to address the RACT requirements for Philadelphia 
under the 1997 8-hour ozone NAAQS. The 2006 SIP revision consisted of a 
RACT demonstration for Philadelphia, including (1) a certification that 
previously adopted RACT regulations that were approved by EPA in 
Pennsylvania's SIP for Philadelphia under the 1-hour ozone NAAQS 
continue to represent RACT for the 1997 8-hour ozone NAAQS 
implementation purposes; (2) the adoption of federally enforceable 
permits that represent CTG RACT control for four major VOC sources; and 
(3) a negative declaration that certain VOC source categories that 
would be covered by CTG documents do not exist in Philadelphia.
    EPA identified two deficiencies in the 2006 SIP revision which 
precluded EPA's approval. First, the 2006 SIP revision included as RACT 
certain provisions that relied on the NOX SIP Call, which in 
light of the 2009 D.C. Circuit decision in NRDC v. EPA regarding the 
inappropriateness of the NOX SIP Call as RACT, precluded EPA 
from approving the 2006 SIP revision. Specifically, the 2006 SIP 
submittal certified as RACT the following PADEP regulations: 25 Pa Code 
sections 145.1-145.100 (``NOX Budget Trading Program''), 25 
Pa Code sections 145.111-145.113 (``Emissions of NOX from 
Stationary Internal Combustion Engines''), and 25 Pa Code sections 
145.141-144 (``Emissions of NOX from Cement 
Manufacturing''). Second, EPA also determined that the Philadelphia 
2006 SIP revision did not sufficiently address the source-specific RACT 
requirements for 46 major sources of NOX and/or VOC that 
were previously approved under the 1-hour ozone NAAQS, per the SIP 
approved regulation in 25 Pa Code sections 129.91-92, which AMS 
certified as RACT under the 1997 8-hour ozone NAAQS.
    On June 22, 2010, PADEP submitted another RACT SIP revision 
addressing certain CTG RACT requirements that superseded portions of 
the RACT demonstration in the 2006 SIP revision. The 2010 SIP revision 
consisted of two new CTG regulations, Air Management Regulation (AMR) V 
section XV (``Control of Volatile Organic Compounds (VOC) from Marine 
Vessel Coating Operations'') and AMR V section XVI (``Synthetic Organic 
Manufacturing Industry (SOCMI) Air Oxidation, Distillation, and Reactor 
Processes''), and related amendments to AMR V Section I 
(``Definitions''), as adopted by AMS on April 26, 2010, effective upon 
adoption. The 2010 SIP revision also included a negative declaration 
demonstrating that there are no sources in Philadelphia for the CTG 
source category of natural gas and gasoline processing plants. The CTG 
regulations adopted in 2010 superseded source-specific RACT 
determinations provided in the 2006 SIP revision, because the new 
provisions are as, if not more, stringent than those RACT requirements 
previously submitted in 2006.\8\ Additionally, the 2010 SIP

[[Page 38995]]

revision clarified that in the 2006 SIP submission, AMS had erroneously 
defined two sources in Philadelphia under the CTG category for natural 
gas and gasoline processing plants, and for which AMS submitted source-
specific RACT determinations in the 2006 SIP revision. For these 
reasons, EPA determined that the provisions in the 2006 and 2010 SIP 
revisions were related in addressing Philadelphia's 1997 8-hour ozone 
NAAQS RACT obligation and were not separable for approval purposes as 
each SIP submittal contained provisions addressing RACT obligations.
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    \8\ AMR V section XV and AMR V section XVI address EPA's RACT 
requirements as specified in the following CTGs: (1) ``Control 
Techniques Guidelines for Shipbuilding and Ship Repair Operations 
(Surface Coating)'' (61 FR 44050, August 27, 1996), (2) ``Control of 
Volatile Organic Compound Emissions from Air Oxidation Processes in 
Synthetic Organic Chemical Manufacturing Industry'' (EPA-450/3-84-
015, December 1984), and (3) ``Control of Volatile Organic Compound 
Emissions from Reactor Processes and Distillation Operations in 
Synthetic Organic Chemical Manufacturing Industry'' (EPA-450/4-91-
031, August 1993).
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    Pursuant to section 110(k)(4) of the CAA, on April 26, 2013, PADEP 
submitted, on behalf of AMS, a letter in which AMS committed to submit 
SIP revisions addressing the source-specific RACT requirements for 
major sources of NOX and/or VOC in Philadelphia under the 
1997 8-hour ozone NAAQS, including EGUs that were presumed to rely on 
the NOX SIP Call provisions to meet RACT. In the April 26, 
2013 letter, AMS identified five sources that since the approval of the 
1-hour ozone source-specific RACT determinations have adopted or will 
adopt additional controls that it believed represent RACT under the 
1997 8-hour ozone NAAQS, and for which it would submit new source-
specific RACT determinations: (1) Philadelphia Energy Solutions 
Refining and Marketing, LLC (formerly Sunoco Inc. (R&M)--Philadelphia), 
(2) Kraft Nabisco (formerly Nabisco Biscuit Co, and presently 
Mondelez), (3) Temple University--Health Sciences Campus, (4) GATX 
Terminals Corporation (presently, Kinder Morgan Liquids terminals, 
LLC), and (5) Honeywell International--Frankford Plant (formerly Sunoco 
Chemicals--Frankford Plant). Additionally, AMS indicated it would 
submit source-specific RACT determinations for five EGU sources in 
Philadelphia that relied on emissions reductions under the 
NOX SIP Call as RACT including: (1) Exelon Generating 
Company--Delaware Station, (2) Exelon Generating Company--Richmond 
Station, (3) Exelon Generating Company-- Schuylkill Station, (4) Veolia 
Energy--Edison Station (formerly TRIGEN--Edison Station), and (5) 
Veolia Energy--Schuylkill Station (formerly TRIGEN- Schuylkill 
Station). AMS needed to submit source-specific RACT determinations or 
alternative certifications to address RACT for any major NOX 
sources, such as EGUs, for which AMS relied in prior SIP submissions on 
the NOX SIP Call to address RACT for the 1997 8-hour ozone 
NAAQS, because EPA cannot approve as RACT provisions relying on the 
NOX SIP Call. See NRDC v. EPA, 571 F.3d 1245.
    On June 19, 2013 (78 FR 36716), EPA proposed conditional approval 
of the Philadelphia 1997 8-hour ozone RACT demonstration included in 
both the 2006 and 2010 RACT SIP revisions, based upon AMS's commitment 
to submit additional SIP revisions to correct the deficiencies 
previously identified by EPA.\9\ In the June 19, 2013 proposed 
conditional approval, EPA proposed that in order to correct the 
deficiencies in the Philadelphia 1997 8-hour ozone RACT demonstration, 
AMS needed to provide a source-specific RACT analysis for each major 
NOX/VOC source subject to 25 Pa Code 129.91-92 for which 
current controls do not currently and adequately represent RACT for the 
1997 8-hour ozone NAAQS, including each of the 10 major NOX 
and/or VOC sources identified by AMS in the April 26, 2013 letter, or 
alternatively provide a certification that source-specific RACT 
controls for all other major sources of NOX and VOC in 
Philadelphia previously approved by EPA in Pennsylvania's SIP for the 
1-hour ozone NAAQS continue to adequately represent RACT for the 1997 
8-hour ozone NAAQS.
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    \9\ In this action, EPA also withdrew its previous proposed rule 
published on August 26, 2008 (73 FR 50270), proposing to fully 
approve the 2006 SIP revision addressing 1997 8-hour ozone RACT for 
Philadelphia.
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    On December 13, 2013 (78 FR 75902), EPA finalized its conditional 
approval of the Philadelphia 1997 8-hour ozone RACT demonstration, as 
provided in the 2006 and 2010 SIP revisions, with the condition that 
Pennsylvania, on behalf of AMS, submits additional SIP revisions 
addressing source-specific RACT to address the deficiencies in the 
previously submitted 1997 8-hour ozone RACT demonstration. As stated in 
the December 13, 2013 final action, once EPA determines that AMS has 
satisfied this condition, EPA shall remove the conditional nature of 
such approval and the Philadelphia 1997 8-hour ozone RACT demonstration 
will receive at that time full approval status. For a detailed 
discussion of EPA's conditional approval of Philadelphia's 1997 8-hour 
ozone RACT demonstration and the identified deficiencies of the 2006 
SIP revision, see 78 FR 75902 (December 13, 2013) (final action) and 78 
FR 36716 (June 19, 2013) (proposed action).

II. Summary of SIP Revisions

    To satisfy the requirements from EPA's December 13, 2013 
conditional approval, PADEP has submitted to EPA, on behalf of AMS, 
subsequent SIP revisions addressing the source-specific RACT 
requirements for major sources in Philadelphia subject to 25 Pa Code 
129.91-92. On June 27, 2014, February 18, 2015, and April 26, 2016, 
PADEP submitted to EPA, on behalf of AMS, three separate SIP revisions 
pertaining to the Philadelphia 1997 8-hour ozone RACT demonstration 
(hereafter collectively referred to as ``the Philadelphia RACT SIP 
revisions''). AMS provided documentation in the Philadelphia RACT SIP 
revisions to support that RACT has been met for all major sources of 
NOX and/or VOC in Philadelphia, including source-specific 
RACT determinations for affected emission units at each major source 
subject to 25 Pa Code 129.91-92.\10\ Specifically, AMS evaluated a 
total of 25 major NOX and/or VOC sources in Philadelphia for 
RACT.
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    \10\ The applicable ``major source'' thresholds for 1997 8-hour 
ozone RACT purposes are 50 tons per year (TPY) of VOC and 100 TPY of 
NOX or greater of potential emissions for each respective 
pollutant, in light of the moderate ozone classification of 
Philadelphia for the 1997 8-hour ozone NAAQS, as well as its 
location in the OTR.
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    On April 26, 2016, PADEP also submitted a letter, on behalf of AMS, 
withdrawing from the 2006 SIP revision the certification of the 
Pennsylvania rules related to the NOX SIP Call as 1997 8-
hour ozone RACT, specifically 25 Pa Code sections 145.1-145.100, 25 Pa 
Code sections 145.111-145.113, and 25 Pa Code sections 145.141-144. In 
the letter, PADEP reaffirms that AMS is no longer relying on the SIP 
approved provisions related to the NOX SIP Call as 1997 8-
hour ozone RACT for any sources in Philadelphia. On May 4, 2016, EPA 
submitted a letter accepting PADEP's request for withdrawal of these 
provisions from the 2006 SIP revision, and acknowledging that this 
portion of the submittal is no longer pending before EPA for a final 
action.
    The June 27, 2014 SIP revision consists of a source-specific RACT 
determination for certain emissions units (6 process heaters) at 
Philadelphia Energy Solutions Refining and Marketing, LLC (PES). The 
February 19, 2015 SIP revision addresses RACT requirements for the 25 
major sources of NOX and/or VOC in Philadelphia, including 
the remaining emissions units at PES that were not addressed in the 
June 27, 2014 SIP revision. The April 26, 2016 SIP revision amends the 
RACT determinations for 15 sources that were

[[Page 38996]]

previously addressed in the February 19, 2015 SIP revision.
    In the Philadelphia RACT SIP revisions, AMS includes a RACT 
evaluation for each major source of NOX and/or VOC in 
Philadelphia. AMS identifies applicable RACT requirements for the 
existing emissions units at each major source located in Philadelphia, 
including CTG RACT, presumptive RACT requirements, and source-specific 
RACT requirements.\11\ AMS identified 16 major sources of 
NOX and/or VOC in Philadelphia subject to Pennsylvania's 
source-specific RACT requirements, as summarized in Table 1, including 
14 major sources subject to previous source-specific RACT 
determinations and 2 major sources newly subject to source-specific 
RACT.
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    \11\ The CTG RACT requirements are those specified in 
regulations in the Pennsylvania SIP and are consistent with EPA's 
CTGs for the affected source categories. Presumptive RACT 
requirements are those specified in 25 Pa Code section 129.93, which 
are alternative compliance option for sources subject to source-
specific RACT.

                 Table 1--Major NOX and/or VOC Sources in Philadelphia Subject to Source-Specific RACT Under the 1997 8-Hour Ozone NAAQS
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                                                                                                        New or revised source-      New or revised RACT
            Major source               Plant ID No.   1-Hr ozone RACT     Major source pollutant       specific determination?       permit (effective
                                                          source?                                        (``Yes'' or ``No'')               date)
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Exelon Generating Company--Delaware            04901               X   NOX.........................  No.........................
 Station.
Exelon Generating Company--Richmond            04903               X   NOX.........................  Yes........................  PA-51-4903 (02/09/16).
 Station.
Exelon Generating Company--                    04904               X   NOX.........................  No.........................
 Schuylkill Station.
Honeywell--Frankford Plant                     01551               X   NOX and VOC.................  Yes........................  PA-51-1151 (02/09/16).
 [formerly, Sunoco Chemical--
 Frankford Plant].
Kinder Morgan Liquids Terminals, LLC           05003               X   VOC.........................  Yes........................  PA-51-5003 (02/09/16).
 [formerly, GATX Terminals Corp.].
Naval Surface Warfare Center,                  09724               X   NOX.........................  Yes........................  PA-51-9724 (02/09/16).
 Carderock Division (NSWCCD).
Newman & Company, Inc...............           03489               X   NOX.........................  No.........................
PaperWorks Industries Inc.                     01566               X   NOX.........................  Yes........................  PA-51-1566 (01/09/15).
 [formerly, Jefferson Smurfit, Corp./
 Container Corp. of America].
Philadelphia Energy Solutions--          01501/01517               X   NOX and VOC.................  Yes........................  PA-51-01501 and PA-51-
 Refining and Marketing, LLC                                                                                                       01517 (02/09/16).
 [formerly, Sunoco Inc. (R&M)--
 Philadelphia].
Philadelphia Gas Works--Richmond               04922               X   NOX.........................  Yes........................  PA-51-4922 (01/09/15).
 Plant.
Philadelphia Prison System..........           09519  ...............  NOX.........................  Yes........................  PA-51-9519 (02/09/16).
Plain Products Terminals, LLC                  05013               X   VOC.........................  Yes........................  PA-51-05013 (02/09/
 [formerly, Maritank Philadelphia,                                                                                                 16).
 Inc. and Exxon Company, USA].
Temple--Health Sciences Campus......           08906               X   NOX.........................  Yes........................  PA-51-8906 (01/09/15).
Temple--Main Campus.................           08905  ...............  NOX.........................  Yes........................  PA-51-8905 (01/09/15).
Veolia Energy--Edison Station                  04902               X   NOX.........................  Yes........................  PA-51-4902 (01/09/15).
 [formerly TRIGEN- Edison Station].
Veolia Energy--Schuylkill Station       04942/04944/               X   NOX.........................  Yes........................  PA-51-4942 (02/09/16)/
 [TRIGEN--Schuylkill Station]/Grays            10459                                                                               PA-51-4944 (01/09/15)/
 Ferry Cogeneration Partnership/                                                                                                   PA-51-10459 (01/09/
 Veolia Energy Efficiency, LLC \a\.                                                                                                15).
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\a\ Grays Ferry Cogeneration Plant, Veolia Schuylkill, and Veolia Energy Efficiency have been aggregated as a single major source after the 1-hour RACT
  determination. AMS submitted RACT documentation for each facility separately, although considering RACT applicability as a single major source of NOX.

    The source-specific RACT determinations submitted by AMS consist of 
an evaluation of all reasonably available controls at this time for 
each affected emissions unit, resulting in an AMS determination of what 
specific control requirements, if any, satisfy RACT for that particular 
unit. The adoption of new or additional controls or the revisions to 
existing controls as RACT were specified as requirements in new or 
revised federally enforceable permits (hereafter RACT permits) issued 
by AMS for the source. The new or revised RACT permits have been 
submitted as part of the Philadelphia RACT SIP revisions for EPA's 
approval in the Pennsylvania SIP under 40 CFR 52.2020(d)(1). For 
sources subject to previous RACT determinations specified in RACT 
permits under 40 CFR 52.2020(d)(1) for which AMS is revising or 
adopting additional source-specific controls, the revised RACT permits, 
once approved by EPA, will supersede those permits currently in the 
SIP. All new or revised RACT permits submitted by AMS are listed in the 
last column of Table 1.
    As part of the source-specific RACT determinations, AMS is also 
certifying for certain emissions units at major sources subject to 
source-specific RACT determinations under the 1-hour ozone NAAQS, which 
are part of the Pennsylvania SIP at 40 CFR

[[Page 38997]]

52.2020(d)(1), that the existing RACT controls continue to represent 
RACT for the 1997 8-hour ozone NAAQS. For these units, AMS did not 
propose additional revisions.
    AMS submitted source-specific RACT determinations for nine of the 
ten major sources identified in EPA's conditional approval. AMS did not 
submit the required source-specific RACT determination for Kraft 
Nabisco (formerly Nabisco Biscuit Co, and presently Mondelez), because 
it concluded that this source is no longer considered a major source of 
NOX and VOC for 1997 8-hour ozone RACT. As clarified in the 
Philadelphia RACT SIP revisions, in 2012, Mondelez took federally 
enforceable facility-wide limits of 25 tons per year for both 
NOX and VOC emissions, restricting the facility's potential 
emissions under the applicable thresholds for 1997 8-hour ozone RACT. 
EPA concurs with AMS's conclusion regarding the operational status of 
Mondelez and thus determines that the condition in the December 13, 
2013 conditional approval to submit a source-specific RACT 
determination under the 1997 8-hour ozone NAAQS for this source is no 
longer applicable.
    AMS is further certifying that there are 27 additional 
NOX and/or VOC sources in Philadelphia subject to source-
specific RACT determinations for the 1-hour ozone NAAQS in the 
Pennsylvania SIP at 40 CFR 52.2020(d)(1) that are no longer subject to 
RACT for purposes of the 1997 8-hour ozone NAAQS. AMS clarifies that 18 
of these sources have permanently shut down, while the remaining nine 
are no longer considered major sources of NOX/VOC emissions 
for RACT under the 1997 8-hour ozone NAAQS (less than 100 or 50 TPY, 
respectively). Sources that remain in operation must still comply with 
the SIP approved 1-hour ozone RACT determinations, although not subject 
to 1997 8-hour ozone RACT. AMS is formally requesting EPA to remove 
from the SIP the 18 source-specific RACT determinations approved under 
the 1-hour ozone NAAQS, as codified in 40 CFR 52.2020(d)(1). The 
shutdown sources and their respective SIP approved RACT Permits are 
listed in Table 2. AMS certifies that none of these shutdown facilities 
have active operating permits or air pollution licenses for any 
equipment, and that under Pennsylvania and Philadelphia regulations, 
they cannot operate until further notification and issuance of 
applicable permits.

   Table 2--Shutdown Major Sources of NOX and/or VOC in Philadelphia Subject to Previous Source-Specific RACT
                                                 Determinations
----------------------------------------------------------------------------------------------------------------
                                      SIP approved RACT  permit (effective
               Source                                date)                         EPA's SIP approval date
----------------------------------------------------------------------------------------------------------------
Aldan Rubber Company...............  PA-51-1561 (07/21/00)................  10/30/01, 66 FR 54691.
Amoco Oil Company..................  PA-51-5011 (05/29/15)................  10/31/01, 66 FR 54936.
Arbill Industries, Inc.............  PA-51-3811 (07/27/99)................  10/30/01, 66 FR 54691.
Braceland Brothers, Inc............  PA-51-3679 (07/14/00)................  10/30/01, 66 FR 54691.
Budd Company.......................  PA-51-1564 (12/28/95)................  12/15/00, 65 FR 78418.
Eastman Chemical [formerly,          PA-51-3542 (07/27/99)................  10/30/01, 66 FR 54691.
 McWhorter Technologies, Inc.].
Graphic Arts, Incorporated.........  PA-51-2260 (07/14/00)................  10/30/01, 66 FR 54691.
Interstate Brands Corporation......  PA-51-5811 (04/10/95)................  12/15/00, 65 FR 78418.
Kurz Hastings, Inc.................  PA-51-1585 (05/29/95)................  10/31/01, 66 FR 54936.
Lawrence McFadden, Inc.............  PA-51-2074 (06/11/97)................  10/31/01, 66 FR 54936.
O'Brien (Philadelphia)               PA-51-1533 (07/21/00)................  10/30/01, 66 FR 54691.
 Cogeneration, Inc.--Northeast
 Water Pollution Control Plant.
O'Brien (Philadelphia)               PA-51-1534 (07/21/00)................  10/30/01, 66 FR 54691.
 Cogeneration, Inc.--Southwest
 Water Pollution Control Plant.
Pearl Pressman Liberty.............  PA-51-7721 (07/24/00)................  10/30/01, 66 FR 54691.
Philadelphia Baking Company........  PA-51-3048 (04/10/95)................  10/31/01, 66 FR 54936.
Rohm and Haas Company--Philadelphia  PA-51-1531 (07/27/99)................  10/31/01, 66 FR 54942.
Tasty Baking Co....................  PA-51-2054 (04/04/95)................  10/31/01, 66 FR 54942.
Transit America, Inc...............  PA-51-1563 (06/11/97)................  11/5/01, 66 FR 55880.
SBF Communications.................  PA-51-2197 (07/21/00)................  10/31/01, 66 FR 54942.
----------------------------------------------------------------------------------------------------------------

III. EPA's Evaluation of SIP Revisions

    After thorough review and evaluation of the information provided by 
AMS in the Philadelphia RACT SIP revisions for major sources of 
NOX and/or VOC in Philadelphia, EPA finds that the AMS 
source-specific RACT determinations and conclusions provided are 
reasonable and address RACT requirements for Philadelphia for the 1997 
8-hour ozone NAAQS in accordance with the Phase 2 Ozone Implementation 
Rule and latest available information. EPA finds that the proposed 
source-specific RACT controls and emissions limits in the Philadelphia 
RACT SIP revisions adequately meet the CAA RACT requirements for the 
1997 8-hour ozone NAAQS for each major source of NOX and VOC 
in Philadelphia not covered by Pennsylvania RACT regulations.
    EPA also finds that the all proposed revisions to previously SIP 
approved RACT requirements, as discussed in the Philadelphia RACT SIP 
revisions will result in equivalent or additional reductions of 
NOX and/or VOC emissions and should not interfere with any 
applicable requirement concerning attainment or reasonable further 
progress with the NAAQS or interfere with other applicable CAA 
requirement in section 110(l) of the CAA. In the case of AMS removal of 
RACT requirements from the SIP that are no longer applicable, as the 
sources have been permanently removed, EPA finds these SIP revisions to 
be adequate and will not have any adverse impact to air quality. EPA's 
complete analysis of the Philadelphia RACT SIP revisions is included in 
the technical support document (TSD) available in the docket for this 
rulemaking action and available on line at http://www.regulations.gov.
    As discussed earlier, EPA determined in the December 15, 2013 
conditional approval that the Philadelphia 1997 8-hour ozone RACT 
demonstration as provided in the 2006 and 2010 SIP revisions adequately 
met RACT under the CAA, with exception of the source-specific RACT 
requirements in 25 PA Code sections 129.91-92 and the NOX 
SIP Call related provisions in the Pennsylvania SIP in 25 Pa Code 
sections 145.1-145.100, 25 Pa Code sections 145.111-145.113, and 25 Pa 
Code sections 145.141-144. In this proposed

[[Page 38998]]

rulemaking action, EPA finds that the subsequent Philadelphia RACT SIP 
revisions adequately correct the two deficiencies identified by EPA on 
the Philadelphia RACT demonstration, as provided in the 2006 and 2010 
SIP revisions, and thus satisfy the December 15, 2013 conditional 
approval. Based on PADEP's withdrawal of the certified provisions 
relying on NOX SIP Call as RACT from the 2006 SIP revision, 
EPA finds that the remaining certified NOX and/or VOC 
regulations, the CTG negative declarations, and the recently adopted 
regulatory provisions in AMR V sections XV and XVI, submitted as part 
of the 2006 and 2010 SIP revisions, are consistent with the latest 
available information and EPA's guidance and therefore adequately meet 
RACT for the 1997 8-hour ozone NAAQS.\12\
---------------------------------------------------------------------------

    \12\ EPA's evaluation of the 2006 and 2010 SIP revisions is 
provided in the June 19, 2013 proposed conditional approval and 
related technical support document dated May 22, 2013, and will not 
be restated here. See 78 FR 36716.
---------------------------------------------------------------------------

    Consequently, EPA finds that the Philadelphia 1997 8-hour ozone 
RACT demonstration, as provided within the SIP revisions submitted to 
EPA from 2006 to 2016, address RACT under the 1997 8-hour ozone NAAQS 
for all NOX and/or VOC major sources in Philadelphia 
through: (1) Compliance with previously approved RACT regulations in 
the Pennsylvania SIP, including but not limited to CTG regulations (in 
the 2006 and 2010 SIP revisions); (2) submission of negative 
declarations (in the 2006 and 2010 SIP revisions) for CTG source 
categories; (3) the adoption of additional source-specific controls 
and/or limits in major sources, included in federally enforceable 
permits and submitted as part of the SIP revisions; and/or (4) 
certifications for major sources subject to source-specific RACT 
controls previously approved into the SIP, which controls continue to 
represent RACT under the 1997 8-hour ozone NAAQS. Additional details 
regarding Philadelphia's source-specific RACT determinations, full 
background on the Philadelphia RACT SIP revisions, and EPA's detailed 
evaluation of the Philadelphia RACT SIP revisions can be found in the 
TSD prepared for this rulemaking action and available in the docket for 
this rulemaking at http://www.regulations.gov.

IV. Proposed Action

    EPA proposes to approve the Philadelphia RACT SIP revisions 
submitted on June 27, 2014, February 18, 2015, and April 26, 2016 for 
all major sources of NOX and/or VOC in Philadelphia subject 
to 25 Pa Code 129.91-92, as adequately meeting the CAA RACT 
requirements for the 1997 8-hour ozone NAAQS. EPA is proposing to 
incorporate by reference in the Pennsylvania SIP, via RACT permits, 
source-specific RACT determinations under the 1997 8-hour ozone NAAQS 
for certain major sources of NOX and VOC emissions.
    EPA also proposes to find that the Philadelphia RACT SIP revisions 
satisfy the conditions established by EPA in its December 13, 2013 
conditional approval to correct the deficiencies of the previously 
submitted Philadelphia 1997 8-hour ozone NAAQS RACT demonstration. For 
this reason, EPA also proposes to remove the conditional nature of the 
December 13, 2013 conditional approval and grant full approval to the 
Philadelphia 1997 8-hour ozone NAAQS RACT demonstration, as submitted 
on September 29, 2006 and June 22, 2010 as SIP revisions.
    EPA also proposes in this rulemaking action that the certified and 
recently adopted NOX and VOC regulations and the negative 
declarations, included in the September 29, 2006 and June 22, 2010 SIP 
revisions, meet RACT under the 1997 8-hour ozone NAAQS. Therefore, EPA 
also proposes to incorporate by reference into the Pennsylvania SIP the 
regulatory provisions in AMR V sections I, XV, and XVI, as amended or 
adopted in April 26, 2010 and effective upon adoption. Finally, EPA 
proposes that the Philadelphia 1997 8-hour ozone NAAQS RACT 
demonstration, included within the September 29, 2006, June 22, 2010, 
June 27, 2014, February 18, 2015, and April 26, 2016 SIP revisions, 
satisfies the RACT requirements under the CAA for the 1997 8-hour ozone 
NAAQS, in accordance with the Phase 2 Ozone Implementation Rule. EPA is 
soliciting public comments on the issues discussed in this document. 
These comments will be considered before taking final action.

V. Incorporation by Reference

    In this proposed rulemaking action, 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, EPA is 
proposing to incorporate by reference source-specific RACT 
determinations under the 1997 8-hour ozone NAAQS for certain major 
sources of NOX and VOC emissions, and Philadelphia CTG RACT 
regulations of AMR V sections I, XV, and XVI, as amended or adopted in 
April 26, 2010 and effective upon adoption. EPA has made, and will 
continue to make, these documents generally available electronically 
through www.regulations.gov and/or may be viewed at the appropriate EPA 
office (see the ADDRESSES section of this preamble for more 
information). In accordance with requirements of 1 CFR 51.5, EPA is 
proposing to incorporate by reference the regulatory provisions under 
40 CFR 52.2020(c) and the source-specific RACT requirements under 40 
CFR 52.2020(d)(1).

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA 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 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.);
     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

[[Page 38999]]

health or environmental effects, using practicable and legally 
permissible methods, under Executive Order 12898 (59 FR 7629, February 
16, 1994).
    In addition, this proposed rule, regarding the Philadelphia RACT 
requirements under the 1997 8-hour ozone NAAQS, 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.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements, Volatile organic compounds.

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

    Dated: June 3, 2016.
Shawn M. Garvin,
Regional Administrator, Region III.
[FR Doc. 2016-14102 Filed 6-14-16; 8:45 am]
BILLING CODE 6560-50-P
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