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[Federal Register Volume 90, Number 12 (Tuesday, January 21, 2025)]
[Proposed Rules]
[Pages 6928-6932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-01220]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2024-0627; FRL-12536-01-R9]

Air Plan Revisions; California Air Plan Revisions; San Joaquin 
Valley Unified Air Pollution Control District; Stationary Source 
Permits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing action 
on three permitting rules submitted as a revision to the San Joaquin 
Valley Unified Air Pollution Control District (SJVUAPCD or 
``District'') portion of the California State Implementation Plan 
(SIP). These revisions concern the District's New Source Review (NSR) 
permitting program for new and modified sources of air pollution under 
section 110(a)(2)(C) and part D of title I of the Clean Air Act (CAA or 
``Act''). This action will update the California SIP with rules that 
the District has revised to address deficiencies identified in a 
previous limited disapproval action and to incorporate other revisions 
related to NSR requirements. We are taking comments on this proposal 
and plan to follow with a final action. Elsewhere in this Federal 
Register, we are making an interim final determination that will defer 
the imposition of CAA sanctions associated with our previous limited 
disapproval action. This action also proposes to revise regulatory text 
to clarify that the SJVUAPCD is not subject to the federal 
implementation plan related to protection of visibility.

DATES: WComments must be received on or before February 20, 2025.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2024-0627 at https://www.regulations.gov. For comments submitted at 
Regulations.gov, follow the online instructions for submitting 
comments. Once submitted, comments cannot be edited or removed from 
Regulations.gov. 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 https://www.epa.gov/dockets/commenting-epa-dockets. If you need assistance in a 
language other than English or if you are a person with a disability 
who needs a reasonable accommodation at no cost to you, please contact 
the person identified in the FOR FURTHER INFORMATION CONTACT section.

FOR FURTHER INFORMATION CONTACT: Doris Lo, EPA Region IX, 75 Hawthorne 
St., San Francisco, CA 94105. By phone: (415) 972-3959, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,'' 
``us,'' and ``our'' refer to the EPA.

Table of Contents

I. The State's Submittal
    A. What rules did the State submit?
    B. Are there other versions of these rules?
    C. What is the purpose of the submitted rules?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. What are the rule deficiencies?
    D. EPA Recommendations To Further Improve the Rules.
    E. Proposed Action and Public Comment.
III. Incorporation by Reference
IV. Statutory and Executive Order Reviews

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal including the 
date they were adopted by the District and submitted to the EPA by the 
California

[[Page 6929]]

Air Resources Board (CARB), which is the governor's designee for 
California SIP submittals.

                                            Table 1--Submitted Rules
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                   Rule No.                                   Rule title                  Adopted     Submitted
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1020..........................................  Definitions...........................      4/20/23     10/13/23
2020..........................................  Exemptions............................     12/18/14     10/13/23
2201..........................................  New and Modified Stationary Source          4/20/23     10/13/23
                                                 Review Rule.
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    On April 13, 2024, the submittal of each rule became complete by 
operation of law.

B. Are there other versions of these rules?

    The SIP-approved versions of the submitted rules are identified 
below in Table 2.

                                           Table 2--SIP-Approved Rules
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                                                                              SIP
                Rule No.                            Rule title              approval   Federal Register citation
                                                                              date
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1020...................................  Definitions....................     10/02/14  79 FR 59433.
2020...................................  Exemptions.....................      9/17/14  79 FR 55637.
2201...................................  New and Modified Stationary          7/10/23  88 FR 43434.
                                          Source Review Rule.
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    If the EPA finalizes the action proposed herein, these rules will 
be replaced in the SIP by the submitted set of rules listed in Table 1. 
Additionally, as described below, the EPA's final approval of these 
rules will resolve our previous limited disapproval of Rule 2201.

C. What is the purpose of the submitted rules?

    The submitted rules constitute part of the District's program for 
preconstruction review and permitting of new or modified stationary 
sources under its jurisdiction. The rule revisions that are the subject 
of this action update the District's preconstruction review and 
permitting program and are intended to satisfy the NSR program 
requirements under part D of title I of the Act (``nonattainment NSR'' 
or ``NNSR''), the general preconstruction review requirements under 
section 110(a)(2)(C) of the Act (``minor NSR''), and related EPA 
regulations. The submitted rules are also intended to resolve 
deficiencies identified in our July 10, 2023 final action (``2023 NSR 
Action''),\1\ which included a limited disapproval of a prior version 
of Rule 2201. The rules also include other assorted revisions, 
including new and revised definitions and applicability and compliance 
provisions.
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    \1\ 87 FR 45730.
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    The San Joaquin Valley is currently designated attainment for the 
nitrogen dioxide, carbon monoxide, particulate matter equal to or less 
than 10 micrometers (PM10), sulfur dioxide (SO2), 
and lead National Ambient Air Quality Standards (NAAQS). The San 
Joaquin Valley is currently designated ``Extreme'' nonattainment for 
the 1997, 2008, and 2015 ozone NAAQS and ``Serious'' nonattainment for 
the 1997, 2006, and 2012 particulate matter equal to or less than 2.5 
micrometers (PM2.5) NAAQS.\2\ Therefore, the District is 
required to adopt and implement a SIP-approved NNSR permitting program 
that applies to new or modified major stationary sources of ozone 
precursors, PM2.5, and PM2.5 precursors within 
the San Joaquin Valley.
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    \2\ See 40 CFR 81.305 (describing geographic extent of San 
Joaquin Valley nonattainment area for each NAAQS).
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    The SIP submittal evaluated in this action includes revisions to 
Rule 1020, ``Definitions,'' Rule 2020, ``Exemptions,'' and Rule 2201, 
``New and Modified Stationary Source Review Rule.'' Rule 1020 provides 
definitions for certain key terms used throughout the District's 
regulations. Rule 2020 specifies types of emissions units that are not 
required to obtain an Authority to Construct (ATC) or Permit to Operate 
(PTO). The rule also specifies the recordkeeping requirements to verify 
a permit exemption and outlines the compliance schedule for existing 
emissions units that lose their permit exemption. Rule 2201 is intended 
to satisfy the requirements of the NNSR program under part D of title I 
of the CAA that are applicable in ozone and PM2.5 
nonattainment areas and the general NSR program permit requirements.
    The EPA's technical support document (TSD) for this action, which 
is included in the docket for our proposed rulemaking, has more 
information about the purposes of the submitted rules and the 
District's revisions.

II. The EPA's Evaluation and Action

A. How is the EPA evaluating the rules?

    The EPA has evaluated the submitted rules to determine whether they 
address the deficiencies identified in our 2023 NSR Action. We have 
also evaluated all additional rule revisions for compliance with CAA 
sections 172(c)(5), 173, 182(e), and 189(b), which establish the 
requirements for stationary source preconstruction permitting programs, 
including those specifically applicable for an Extreme ozone 
nonattainment area and Serious PM2.5 nonattainment area, as 
well as the federal regulations applicable to stationary source 
permitting at 40 CFR 51.160 through 51.165. Additionally, the EPA 
reviewed the rules for consistency with other general CAA requirements 
for SIP submittals, including requirements at CAA section 110(a)(2)(A) 
regarding rule enforceability and requirements at CAA sections 110(l) 
and 193 for SIP revisions. We have also considered whether the rules 
meet the federal visibility requirements related to state NNSR programs 
as described in 40 CFR 51.307.

[[Page 6930]]

B. Do the rules meet the evaluation criteria?

    With the exceptions noted below, the EPA finds that Rules 1020, 
2020, and 2201 generally satisfy the applicable CAA and regulatory 
requirements for sources subject to NNSR permit program requirements. 
Below, we discuss our evaluation of the submitted rules. The TSD for 
this action contains a more detailed analysis.
    The SJVUAPCD revised Rules 1020 and 2201 to address the 
deficiencies identified in the 2023 NSR action. Specifically, the 
District revised Rules 1020 and 2201 to address our findings that the 
previous version of Rule 2201 (1) omitted certain definitions necessary 
for application of the District's permitting program for new and 
modified stationary sources; (2) included provisions allowing for 
interprecursor trading (IPT) that are no longer permissible due to a 
2021 D.C. Circuit Court of appeals decision; (3) allowed for 
impermissible exemptions for relocated sources; (4) lacked public 
notice requirements for certain minor sources; (5) included an offset 
tracking system that failed to ensure equivalency with federal offset 
requirements; (6) did not include certain required provisions for 
temporary replacement units and routine replacement emission units; and 
(7) included other more minor deficiencies. The District addressed all 
these deficiencies in the SIP submission that is being evaluated in 
this action. The TSD for this action provides further detail on these 
deficiencies and how they were addressed by the District. While the 
District addressed all the deficiencies identified in the 2023 NSR 
action, pursuant to sections 110(k)(3) and 301(a) of the Act, we are 
proposing a limited approval and limited disapproval of Rules 1020, 
``Definitions,'' 2020, ``Exemptions,'' and 2201, ``New and Modified 
Stationary Source Review Rule'' due to the newly identified 
deficiencies found in each rule. These new deficiencies are described 
in Section II.C of this action.
    The submitted rules comply with the substantive and procedural 
requirements of CAA section 110(l). With respect to the procedural 
requirements, based on our review of the public process documentation 
included with the submitted rules, we find that the District has 
provided sufficient evidence of public notice and opportunity for 
comment and public hearings prior to submittal of this SIP revision and 
has satisfied these procedural requirements under CAA section 110(l).
    With respect to the substantive requirements of CAA section 110(l), 
we have determined that our approval of the submitted rules would not 
interfere with the area's ability to attain or maintain the NAAQS or 
with any other applicable requirements of the CAA. Similarly, we find 
that the submitted rules are approvable under section 193 of the Act 
because they do not modify any control requirement in effect before 
November 15, 1990, without ensuring equivalent or greater emission 
reductions. The submitted rules are otherwise consistent with criteria 
for the EPA's approval of regulations submitted for inclusion in the 
SIP, including the requirement at CAA section 110(c)(2)(A) that 
submitted regulations be clear and legally enforceable.
    For the reasons stated above and explained further in the TSD for 
this action, we find that the submitted rules generally satisfy the 
applicable CAA and regulatory requirements for NSR permit programs 
under CAA section 110(a)(2)(A) and part D of title I of the Act and 
other applicable requirements, subject to the exceptions noted below 
where the EPA has identified deficiencies. This submittal also corrects 
the deficiencies described in our 2023 NSR Action. If we finalize this 
action as proposed, our action will resolve the limited disapproval of 
Rule 2201 and will be codified through revisions to 40 CFR 52.220 
(Identification of plan--in part). Because Rules 1020, 2020, and 2201 
are not fully consistent with these requirements, we are proposing a 
limited approval and limited disapproval of the rules under CAA 
sections 110(k)(3) and 301(a). The specific rule provisions that do not 
meet the evaluation criteria are summarized in the following section 
and described in more detail in the TSD included in the docket for this 
proposed action.
    We are concurrently making an interim final determination to defer 
CAA section 179 sanctions associated with the 2023 NSR Action's limited 
disapproval of Rule 2201. Consistent with our order of sanction 
regulations,\3\ this determination is based on this proposal to approve 
SIP revisions from the District that resolve the deficiencies that were 
the basis of our prior limited disapproval that triggered sanctions 
under section 179 of the CAA.
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    \3\ 40 CFR 52.31.
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C. What are the rule deficiencies?

    The following provisions of Rules 1020, 2020, and 2201 do not 
satisfy the requirements of section 110 and/or part D of title I of the 
Act and prevent full approval of the rules. The District must correct 
the deficiencies identified in this section and resubmit the rules for 
the EPA's approval in a subsequent action. The EPA has identified three 
deficiencies in the submitted rules.
1. Rule 1020--Definitions
    The definition of VOC in Rule 1020 is deficient because it does not 
include trans-1,1,1,4,4,4-hexafluorobut-2-ene (also known as HFO-
1336mzz(E)), which is an exempt compound listed in the definition of 
VOC as found in 40 CFR 51.100(s)(1). In addition, on November 12, 2024, 
the EPA proposed to add (Z)-1-chloro-2,3,3,3-tetrafluoropropene (also 
known as HCFO-1224yd(Z)) to the definition of VOC as an exempt 
compound. The District must revise the Rule 1020 definition of VOC to 
match the federal definition at 40 CFR 51.100(s), including the 
exemptions listed at 40 CFR 51.100(s)(1).
2. Rule 2020--Exemptions
    Several American Society for Testing and Materials (ASTM) test 
method citations provided in Rule 2020 are deficient because they do 
not include the revision or reissuance date of the specific ASTM 
methods.
3. Rule 2201--New and Modified Stationary Source Review Rule
    The term ``Emission Reduction Credit'' is used in Rule 2201, but 
the term is not defined in the rule or in Rule 1020, ``Definitions.'' 
We note that the term is defined in Rule 2301--Emission Reduction 
Credit Banking, but this rule has not been submitted for SIP approval. 
Therefore, we find Rule 2201 deficient because it does not provide a 
definition for the term Emission Reduction Credit, and the term is a 
necessary component of an approvable NNSR program.

D. EPA Recommendations To Further Improve the Rules

    The TSD for this action includes recommendations for the next time 
the District revises Rule 2201.

E. Proposed Action and Public Comment

    As authorized in sections 110(k)(3) and 301(a) of the Act, the EPA 
is proposing a limited approval and limited disapproval of Rules 1020, 
2020, and 2201. We will accept comments from the public on this 
proposal until February 20, 2025. If we finalize this action as 
proposed, this action will incorporate the submitted rules into the 
SIP, including those provisions identified as deficient. This approval 
is limited because the EPA is

[[Page 6931]]

simultaneously proposing a limited disapproval of the rules under 
section 110(k)(3). If finalized as proposed, our limited disapproval 
action would trigger an obligation on the EPA to promulgate a federal 
implementation plan (FIP) unless the State corrects the deficiencies, 
and the EPA approves the related plan revisions, within two years of 
the final action. Additionally, because the deficiency relates to NNSR 
requirements under part D of title I of the Act, the offset sanction in 
CAA section 179(b)(2) would apply in the San Joaquin Valley 18 months 
after the effective date of a final limited disapproval, and the 
highway funding sanctions in CAA section 179(b)(1) would apply in the 
area six months after the offset sanction is imposed. Neither sanction 
will be imposed under the CAA if the State submits and we approve, 
prior to the implementation of the sanctions, a SIP revision that 
corrects the deficiencies we identify in our final action. The EPA 
intends to work with the District to correct the deficiencies in a 
timely manner.
    This action would also revise the regulatory provisions at 40 CFR 
52.281(d) concerning the applicability of the visibility FIP at 40 CFR 
52.28 as it pertains to California, to provide that this FIP does not 
apply to sources subject to review under the District's SIP-approved 
NNSR program. As described in more detail in the TSD for this action, 
we are proposing to find that Rule 2201 satisfies the visibility 
provisions for sources subject to the NNSR program at 40 CFR 51.307.
    Note that the submitted rules have been adopted by the District, 
and the EPA's final limited disapproval would not prevent the local 
agency from enforcing them. The limited disapproval would also not 
prevent any portion of the rules from being incorporated by reference 
into the federally enforceable SIP.\4\
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    \4\ Memorandum dated July 9, 1992, from John Calcagni, Director, 
Air Quality Management Division, Office of Air Quality Planning and 
Standards, U.S. EPA, to EPA Regional Air Directors, Regions I-X, 
Subject: ``Processing of State Implementation Plan (SIP) 
Submittals.''
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III. Incorporation by Reference

    In this rule, the EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, the EPA is proposing to incorporate by 
reference the rules listed in Table 1 of this preamble. These rules 
implement the District's nonattainment NSR program. The EPA has made, 
and will continue to make, this document available electronically 
through https://www.regulations.gov and at the EPA Region IX Office 
(please contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section of this preamble for more information).

IV. 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, the EPA's role is to review state choices 
and approve those choices if they meet the minimum criteria of the Act. 
Accordingly, this proposed action is proposing a limited approval and 
limited disapproval of state law as meeting federal requirements and 
does not impose additional requirements beyond those imposed by state 
law.
    Additional information about these statutes and Executive Orders 
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.

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

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

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA because this action does not impose additional requirements 
beyond those imposed by state law.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not impose any requirements on small entities beyond those 
imposed by state law.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. This action does not impose additional requirements 
beyond those imposed by state law. Accordingly, no additional costs to 
state, local, or tribal governments, or to the private sector, will 
result from this action.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Coordination With Indian Tribal Governments

    This action does not have tribal implications, as specified in 
Executive Order 13175, because the SIP is not approved to apply on any 
Indian reservation land or in any other area where the EPA or an Indian 
tribe has demonstrated that a tribe has jurisdiction, and will not 
impose substantial direct costs on tribal governments or preempt tribal 
law. Thus, Executive Order 13175 does not apply to this action.

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

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. Therefore, this action is not 
subject to Executive Order 13045 because it is merely proposing a 
limited approval and limited disapproval of state law as meeting 
federal requirements. Furthermore, the EPA's Policy on Children's 
Health does not apply to this action.

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

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

I. National Technology Transfer and Advancement Act (NTTAA)

    Section 12(d) of the NTTAA directs the EPA to use voluntary 
consensus standards in its regulatory activities unless to do so would 
be inconsistent with applicable law or otherwise impractical. The EPA 
believes that this action is not subject to the requirements of section 
12(d) of the NTTAA because application of those requirements would be 
inconsistent with the CAA.

[[Page 6932]]

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

    Executive Order 12898 (Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
February 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on communities with environmental justice 
(EJ) concerns to the greatest extent practicable and permitted by law. 
Executive Order 14096 (Revitalizing Our Nation's Commitment to 
Environmental Justice for All, 88 FR 25251, April 26, 2023) builds on 
and supplements Executive Order 12898 and defines EJ as, among other 
things, ``the just treatment and meaningful involvement of all people, 
regardless of income, race, color, national origin, Tribal affiliation, 
or disability, in agency decision-making and other Federal activities 
that affect human health and the environment.''
    The State did not evaluate EJ considerations as part of its SIP 
submittal; the CAA and applicable implementing regulations neither 
prohibit nor require such an evaluation. The EPA did not perform an EJ 
analysis and did not consider EJ in this action. Consideration of EJ is 
not required as part of this action, and there is no information in the 
record inconsistent with the stated goal of Executive Orders 12898 and 
14096 of achieving EJ for communities with EJ concerns.

List of Subjects in 40 CFR Part 52

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Incorporation by reference, Intergovernmental 
relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur dioxide, Volatile organic compounds.

    Dated: January 13, 2025.
Martha Guzman Aceves,
Regional Administrator, Region IX.
[FR Doc. 2025-01220 Filed 1-17-25; 8:45 am]
BILLING CODE 6560-50-P
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