[Federal Register Volume 60, Number 87 (Friday, May 5, 1995)]
[Rules and Regulations]
[Pages 22277-22283]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10821]



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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52

[UT11-1-6726a, UT12-1-6727a, and UT13-1-6746a; FRL-5184-5]


Approval and Promulgation of Air Quality Implementation Plans; 
Utah; New Source Review

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this document, EPA is approving revisions to the State 
Implementation Plan (SIP) submitted by the Governor of Utah on November 
12, 1993 and on May 20, 1994. The November 12, 1993 submittal included 
revisions to the State's new source review (NSR) permitting regulations 
to meet the new NSR requirements of the amended Clean Air Act (Act) for 
all of its nonattainment areas. The May 20, 1994 submittal included a 
revision to the State's definition of volatile organic compounds. The 
Governor submitted the nonattainment NSR rules with numerous other 
ozone SIP revisions and an ozone redesignation request for the Salt 
Lake and Davis County nonattainment areas. EPA will be acting on the 
other portions of the Governor's November 12, 1993 submittal in 
separate notices. EPA finds that the State's NSR rules meet the Federal 
nonattainment NSR permitting requirements of the Act for all of its 
nonattainment areas, and that the State's revised definition of 
volatile organic compounds is consistent with the federal definition.

DATES: This final rule is effective on July 5, 1995 unless adverse or 
critical comments are received by June 5, 1995. If the effective date 
is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Comments should be addressed to Vicki Stamper, 8ART-AP, at 
the EPA Regional Office listed. Copies of the State's submittal and 
other relevant information are available for [[Page 22278]] inspection 
during normal business hours at the following locations: Air Programs 
Branch, U.S. Environmental Protection Agency, Region VIII, 999 18th 
Street, suite 500, Denver, Colorado 80202-2466; and Division of Air 
Quality, Utah Department of Environmental Quality, P.O. Box 44820, 150 
North 1950 West, Salt Lake City, Utah 84114-4820.

FOR FURTHER INFORMATION CONTACT: Vicki Stamper, 8ART-AP, U.S. 
Environmental Protection Agency, Region VIII, 999 18th Street, suite 
500, Denver, Colorado 80202-2466, (303) 293-1765.

SUPPLEMENTARY INFORMATION:

I. Background

A. Nonattainment NSR Requirements of the Amended Act

    The air quality planning requirements for nonattainment NSR are set 
out in part D of title I of the Act. The EPA has issued a ``General 
Preamble'' describing EPA's preliminary views on how EPA intends to 
review SIPs and SIP revisions submitted under part D, including those 
State submittals containing nonattainment area NSR SIP requirements 
(see 57 FR 13498 (April 16, 1992) and 57 FR 18070 (April 28, 1992)). 
Because EPA is describing its interpretations here only in broad terms, 
the reader should refer to the General Preamble for a more detailed 
discussion of the interpretations of part D advanced in this notice and 
the supporting rationale. A brief discussion of the specific elements 
required in a State's nonattainment NSR program is also included in 
Section II.B. of this notice.
    EPA is currently developing rule revisions to implement the changes 
under the 1990 Clean Air Act Amendments in the NSR provisions of parts 
C and D of title I of the Act. The EPA anticipates that the proposed 
rule will be published for public comment in early 1995. If EPA has not 
taken final action on States' NSR submittals by that time, EPA may 
generally refer to the proposed rule as the most authoritative guidance 
available regarding the approvability of the submittals. EPA expects to 
take final action to promulgate the rule revisions to implement the 
part C and D changes in early 1996. Upon promulgation of those revised 
regulations, EPA will review NSR SIPs to determine whether additional 
SIP revisions are necessary to satisfy the requirements of the 
rulemaking.
    Prior to EPA approval of a State's NSR SIP submission, the State 
may continue permitting only in accordance with the new statutory 
requirements for permit applications completed after the relevant SIP 
submittal date. This policy was explained in transition guidance 
memoranda from John Seitz dated March 11, 1991 and September 3, 1992.
    As explained in the March 11 memorandum, EPA does not believe 
Congress intended to mandate the more stringent title I NSR 
requirements during the time provided for SIP development. States were 
thus allowed to continue to issue permits consistent with requirements 
in their current NSR SIPs during that period, or to apply 40 CFR 51, 
Appendix S for newly designated areas that did not previously have NSR 
SIP requirements.
    The September 3, 1992 memorandum also addressed the situation where 
States did not submit the part D NSR SIP revisions by the applicable 
statutory deadline. For permit applications complete by the SIP 
submittal deadline, States may issue final permits under the prior NSR 
rules, assuming certain conditions in the September 3 memorandum are 
met. However, for applications completed after the SIP submittal 
deadline, EPA will consider the source to be in compliance with the Act 
where the source obtains from the State a permit that is consistent 
with the substantive new NSR part D provisions in the amended Act. EPA 
believes this guidance continues to apply to permitting pending final 
action on Utah's NSR SIP submittal.

B. Volatile Organic Compound Definition

    On February 3, 1992, EPA promulgated a definition of volatile 
organic compounds (VOCs) in 40 CFR 51.100(s). See 57 FR 3941-3946. 
Therefore, Utah updated its definition of VOCs in its regulations to 
reflect the federal definition. That revised definition was submitted 
by the State on June 10, 1994.

II. Analysis of State Submission

    Section 110(k) of the Act sets out provisions governing EPA's 
review of SIP submittals (see 57 FR 13565-13566).

A. Procedural Background

1. New Source Review Rules
    The Act requires States to observe certain procedural requirements 
in developing implementation plans and plan revisions for submission to 
EPA. Section 110(a)(2) of the Act provides that each implementation 
plan submitted by a State must be adopted after reasonable notice and 
public hearing.<SUP>1 Section 110(l) of the Act similarly provides that 
each revision to an implementation plan submitted by a State under the 
Act must be adopted by such State after reasonable notice and public 
hearing.

    \1\Section 172(c)(7) of the Act provides that plan provisions 
for nonattainment areas shall meet the applicable provisions of 
Section 110(a)(2).
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    The EPA also must determine whether a submittal is complete and 
therefore warrants further EPA review and action (see section 110(k)(1) 
and 57 FR 13565, April 16, 1992). The EPA's completeness criteria for 
SIP submittals are set out at 40 CFR part 51, appendix V. The EPA 
attempts to make completeness determinations within 60 days of 
receiving a submission. However, a submittal is deemed complete by 
operation of law under section 110(k)(a)(B) if a completeness 
determination is not made by EPA within 6 months after receipt of the 
submission.
    The State of Utah held public hearings on June 2, 1993 for the VOC/
nitrogen oxides (NO<INF>X) offset provisions and on August 4, 1993 for 
the other NSR revisions to entertain public comment on these SIP 
revisions. Following the public hearings, the VOC/NO<INF>X offset rule 
was adopted by the State on June 17, 1993 and the other NSR revisions 
were adopted on September 30, 1993. These rule revisions were submitted 
to EPA on November 12, 1993 as a proposed revision to the SIP, along 
with other ozone SIP revisions and the ozone redesignation request for 
the Salt Lake and Davis County nonattainment areas.
    Specifically, the State submitted revisions to its NSR permitting 
regulations in Utah Air Conservation Regulation (UACR) R307-1-1 and 
R307-1-3. The revisions to the State's NSR regulations were made to 
bring the State's NSR rules for all of its nonattainment areas up-to-
date with the amended Act.
    The SIP revisions were reviewed by EPA to determine completeness 
shortly after its submittal, in accordance with the completeness 
criteria referenced above. The initial submittal was found to be 
incomplete, and a letter dated January 19, 1994 was forwarded to the 
Governor indicating the administrative and technical deficiencies in 
the submittal. The State of Utah sued EPA on March 18, 1994 regarding 
EPA's incompleteness finding (State of Utah v. EPA, Case No. 94-9520). 
As part of the lawsuit settlement, EPA agreed to allow the State to 
repackage its submittal and request parallel processing of the ozone 
redesignation request for Salt Lake and Davis Counties. Therefore, on 
June 27, [[Page 22279]] 1994, the State submitted a request for 
parallel processing of the ozone maintenance plan and resubmitted a 
reorganized ozone redesignation request which included, among other 
things, NSR rule revisions for all of the State's nonattainment areas. 
On the basis of the State's reorganized redesignation request and 
request for parallel processing, EPA withdrew the January 19, 1994 
finding of incompleteness in a July 7, 1994 letter to the Governor and 
deemed the State to have submitted a complete ozone redesignation 
request, including a complete nonattainment area NSR submittal, on 
November 12, 1993.
    Since the increased emission offset ratio requirements for new and 
modified sources of VOCs and NO<INF>X in the State's moderate ozone 
nonattainment areas were not submitted by November 15, 1992, EPA made a 
finding, pursuant to section 179 of the Act, that the State failed to 
submit that SIP element and notified the Governor in a letter dated 
January 15, 1993. After the VOC/NO<INF>X emission offset rules for the 
State's ozone nonattainment areas were resubmitted on June 27, 1994 
along with the reorganized ozone redesignation request, EPA determined 
that the State's submittal was administratively and technically 
complete on July 7, 1994 as stated above. This completeness 
determination corrected the State's deficiency and, therefore, 
terminated the 18-month sanctions clock under section 179 of the Act.
    Promulgation of full approval of Utah's ozone NSR rules will 
fulfill EPA's obligation under section 110(c)(1) of the Act, which 
requires that EPA either approve the State's submittal or promulgate a 
NSR Federal implementation plan (FIP) within 24 months of EPA's finding 
that the State failed to submit the NSR rules (i.e, by January 15, 
1995).
2. Volatile Organic Compound Definition
    The State of Utah held a public hearing on March 9, 1993 for the 
revisions to the definition of VOCs in UACR R307-1-1 to entertain 
public comment on this SIP revision. Following the public hearing, the 
revised VOC definition was adopted by the State on March 26, 1993. This 
revision was submitted to EPA on May 20, 1994 as a proposed revision to 
the SIP.
    The SIP revision was reviewed by EPA to determine completeness 
shortly after its submittal, in accordance with the completeness 
criteria referenced above. The submittal was found to be complete, and 
a letter dated October 20, 1994 was forwarded to the Governor 
indicating the completeness of the submittal and the next steps to be 
taken in the processing of the submittal.

B. Review of Submittal for Meeting the Nonattainment NSR Requirements 
of the Act

1. General Nonattainment NSR Requirements
    The general statutory requirements for nonattainment NSR SIPs and 
permitting as amended by the 1990 Amendments are found in sections 172 
and 173 of the Act. These requirements apply in all nonattainment 
areas. The following represents EPA's review of the State's regulation 
in meeting the NSR requirements of the amended Act:
    (1) The amended Act repealed the construction ban provisions 
previously found in section 110(a)(2)(I) with certain exceptions.
    No construction bans are currently imposed in Utah, so this 
requirement is inapplicable.
    (2) Section 173(a)(1)(A) of the Act requires a demonstration for 
permit issuance that the new source growth does not interfere with 
reasonable further progress (RFP) for the area. In addition, 
calculations of emissions offsets must be based on the same emissions 
baseline used in the demonstration of RFP.
    In UACR R307-1-3.3.2.C.(3), R307-1-3.3.3.A.(2), and R307-1-3.3.5, 
the State has established provisions which adequately address section 
173(a)(1).
    (3) Section 173(c)(1) of the Act requires that offsets must 
generally be obtained by the same source or other sources in the same 
nonattainment area. However, offsets may be obtained from other 
nonattainment areas if: The area in which the offsets are obtained has 
an equal or higher nonattainment classification; and emissions from the 
nonattainment area in which the offsets are obtained contribute to a 
National Ambient Air Quality Standard (NAAQS) violation in the area in 
which the source would construct.
    In UACR R307-1-3.3.3.A.(1), the State has established provisions 
that adequately meet this requirement of section 173(c)(1).
    (4) Section 173(c)(1) of the Act requires that any emissions 
offsets obtained in conjunction with the issuance of a permit to a new 
or modified source must be in effect and enforceable by the time the 
new or modified source commences operation.
    In UACR R307.1.3.3.3.A.(2), the State has established provisions 
that adequately meet this requirement of section 173(c)(1).
    (5) Section 173(c)(1) of the Act requires that emissions increases 
from new or modified major stationary sources are offset by real 
reductions in actual emissions.
    In UACR R307-1-3.3.3.A.(2), the State has established provisions 
that adequately meet this requirement of section 173(c)(1).
    (6) Section 173(c)(2) of the Act prohibits emissions reductions 
otherwise required by the Act from being credited for purposes of 
satisfying the part D offset requirements.
    In UACR R307-1-3.3.3.A.(3), the State has established provisions 
that adequately meet the requirements of section 173(c)(2).
    (7) Section 173(a)(3) provides that, as a condition of permit 
issuance, states must require the owner or operator of a proposed new 
or modified source to demonstrate that all major stationary sources 
under the same ownership or control are in compliance or are on a 
schedule for compliance with all applicable emission limitations and 
standards.
    In UACR R307-1-3.3.2.C.(2), the State has established provisions 
that adequately meet the requirements of section 173(a)(3).
    (8) Section 173(a)(2) requires a new or modified major stationary 
source to comply with the lowest achievable emission rate (LAER).
    In UACR R307-1-3.3.2.C.(1), the State has established provisions 
that adequately meet the requirements of section 173(a)(2).
    (9) Revised sections 172(c)(4), 173(a)(1)(B), and 173(b) of the Act 
limit and invalidate use of certain growth allowances in nonattainment 
areas.
    This requirement is inapplicable because the State of Utah has not 
established any growth allowances in its nonattainment area SIPs.
    (10) Revised section 173(a)(5) of the Act requires that, as a 
prerequisite to issuing any part D permit, an analysis of alternative 
sites, sizes, production processes, and environmental control 
techniques for a proposed source must be completed which demonstrates 
that the benefits of the proposed source significantly outweigh the 
environmental and social costs imposed as a result of its location, 
construction, or modification.
    In UACR R307-1-3.1.10, the State has established provisions which 
adequately address the requirements of section 173(a)(5).
    (11) Section 173(d) of the Act requires States to submit control 
technology information from permits to EPA for the purposes of making 
such information [[Page 22280]] available through the RACT/BACT/LAER 
clearinghouse.
    Utah and EPA have established provisions in the annual State-EPA 
agreement requiring the State to submit information from nonattainment 
NSR permits to EPA's RACT/BACT/LAER clearinghouse. Thus, a process has 
been established to meet this requirement.
    (12) Section 173(e) of the Act provides that States may allow any 
existing or modified source that tests rocket engines or motors to use 
alternative or innovative means to offset emissions increases from 
firing and related cleaning, under certain conditions.
    In lieu of imposing any alternative offset measures the permitting 
authority may impose an emission limit amounting to no more than 1.5 
times the average cost of stationary control measures adopted in that 
area during the previous three years.
    In UACR R307-1-3.3.3.A.(4), the State has adopted provisions for 
innovative offsetting for rocket engine and motor firing consistent 
with sections 173(e)(1) through (e)(4) of the Act.
    (13) Section 328 requires that sources located on the outer 
continental shelf (OCS) must be subject to the same requirements as 
would be applicable if the source were located in the corresponding 
onshore area.
    Since the State of Utah is landlocked and not adjacent to any 
oceans, this requirement is inapplicable.
    (14) Revised section 302(z) of the Act sets forth a new definition 
of ``stationary source'' reflecting Congressional intent that certain 
stationary internal combustion engines are subject to State regulation 
under stationary source permitting programs, while certain ``nonroad 
engines,'' defined in section 216(10), are generally excluded. On June 
17, 1994, the EPA published regulations in 40 CFR Part 89 regarding new 
nonroad engines and vehicles, including a definition of nonroad engine 
(59 FR 31306).
    EPA's action to approve this SIP revision is limited in that the 
action does not approve any regulation of nonroad engines in a manner 
inconsistent with section 209 of the Act and EPA regulations 
implementing section 209.
2. Applicability of Utah's Nonattainment NSR Provisions
    EPA's initial review of the State's nonattainment NSR rules found 
that the applicability of the rules was unclear. Specifically, UACR 
R307-1-3.3.2.C. states that the nonattainment NSR provisions apply to a 
new or modified source if the Executive Secretary of the Utah Air 
Quality Board finds that the emissions from the proposed source would 
contribute to an existing violation of the NAAQS. EPA identified 
concerns with this language in an August 25, 1994 letter to the State, 
since applicability of the Federal nonattainment NSR requirements is 
based on the fact that a new or modified major source proposes to 
locate in a nonattainment area. In an October 18, 1994 letter, the 
State Air Director provided clarification that, under the State's 
rules, any new major source or major modification proposing to 
construct in a nonattainment area would be considered to contribute to 
an existing violation of the NAAQS and would therefore be subject to 
all of the State's nonattainment NSR requirements. In addition, the 
State's letter further explained that there is a more general 
requirement in UACR R307-1-3.1.8.B. which specifically provides that 
the Executive Secretary may only issue a permit if it is determined to 
be in accord with the ``new source review requirements for 
nonattainment areas under the Federal Clean Air Act.'' Thus, the 
State's regulations require the State to comply with the Federal 
nonattainment NSR requirements in approving any construction permit.
3. Nonattainment Area-Specific NSR Requirements
    In addition to all of the general nonattainment NSR provisions 
mentioned above, there are also nonattainment area-specific NSR 
provisions in subparts 2, 3, and 4 of part D of the Act, some of which 
supersede these general NSR provisions because they are more stringent. 
The following provisions are the additional NSR provisions that apply 
in Utah's nonattainment areas and represent EPA's review of the State's 
regulation in meeting these requirements:
1. Ozone Nonattainment Areas
    The general nonattainment NSR requirements discussed above are 
found in sections 172 and 173 of part D of title I of the Act and must 
be met in all nonattainment areas. Requirements for ozone that 
supplement or supersede these requirements are found in subpart 2 of 
part D. In addition, section 182(f) of subpart 2 states that the 
requirements for major stationary sources of VOCs shall apply to major 
stationary sources of NO<INF>X unless the Administrator makes certain 
determinations related to the benefits or contribution of NO<INF>X 
control to air quality.
    Utah currently has two ozone nonattainment areas: Davis County and 
Salt Lake County, both of which are currently classified as moderate. 
(See 40 CFR 81.345 for Utah's ozone nonattainment area designations.) 
For moderate ozone nonattainment areas, States must submit the 
following NSR provisions, in addition to provisions meeting the general 
NSR requirements in sections 172 and 173 of the Act discussed above:
    a. Definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tons per year (tpy) VOC and, presumptively, the 
100 tpy NO<INF>X thresholds for determination of whether a source is 
subject to the part D NSR requirements as a major source. In addition, 
a 40 tpy significance level for defining major modifications of both 
VOCs and NO<INF>X must be established consistent with the significance 
level in 40 CFR 51.165(a)(1)(x).
    b. Provisions to ensure that new or modified major stationary 
sources obtain offsets under section 182(a)(4) of the Act at a ratio of 
at least 1.15:1 in order to obtain an NSR permit.
    In the applicable definition of ``major source'' in UACR R307-1-1, 
the State has established a 100 tpy threshold for any source of VOCs or 
NO<INF>X located in an ozone nonattainment area or a lesser amount if 
required in part D of the Act. In addition, the definition of ``major 
modification'' in R307-1-1 provides that a modification that is 
significant for VOCs or NO<INF>X shall be considered significant for 
ozone. The State has established a 40 tpy significance threshold for 
both VOCs and NO<INF>X in the definition of ``significant'' in R307-1-
1. Lastly, UACR R307-1-3.3.3.C. requires an offset ratio of at least 
1.15:1 be met by new and modified sources proposing to locate in ozone 
nonattainment areas. Therefore, EPA finds that the State's NSR program 
meets the requirements for all of its ozone nonattainment areas.
    In addition to meeting the NSR requirements for ozone nonattainment 
areas, the State has written the alternative siting analysis 
requirement in R307-1-3.1.10 and the 1.15:1 offset requirement in R307-
1-3.3.3.C. to apply to new or modified major sources of VOCs or 
NO<INF>X proposing to locate in the Salt Lake or Davis County area. In 
addition, the State has retained the nonattainment NSR thresholds for 
VOCs and NO<INF>X for defining a major source proposing to locate in 
Salt Lake or Davis Counties (i.e., 100 tpy). Thus, the State intends 
these two nonattainment NSR provisions to apply in the Salt Lake and 
Davis County areas even after such areas are no longer designated 
nonattainment areas. [[Page 22281]] 
2. Carbon Monoxide Nonattainment Areas
    The State of Utah has three CO nonattainment areas: Salt Lake City, 
currently not classified, Ogden, currently classified as moderate with 
a design value less than 12.7 parts per million (ppm), and Provo, 
currently classified as moderate with a design value greater than 12.7 
ppm. (See 40 CFR 81.345 for Utah's CO nonattainment area designations.)
    For both not classified and moderate CO nonattainment areas, States 
must submit the following NSR provisions, in addition to provisions 
meeting the general NSR requirements in sections 172 and 173 of the Act 
discussed above:
    A definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy CO threshold, and a 100 tpy significance 
level for defining major modifications of CO consistent with the 
significance level in 40 CFR 51.165(a)(1)(x).
    In the applicable definition of ``major source'' in UACR R307-1-1, 
the State has established a 100 tpy threshold for sources of CO 
locating in a CO nonattainment area. In addition, the State has 
established a 100 tpy significance threshold for CO in the definition 
of ``significant'' in R307-1-1. Therefore, EPA finds that the State's 
NSR rules meets the requirements for all of its CO nonattainment areas.
3. PM-10 Nonattainment Areas
    The State of Utah has two PM-10 nonattainment areas, both of which 
are currently classified as moderate: Salt Lake County and Utah County. 
(See 40 CFR 81.345 for Utah's PM-10 nonattainment area designations.) 
For moderate PM-10 nonattainment areas, States must submit the 
following NSR provisions, in addition to provisions meeting the general 
NSR requirements in sections 172 and 173 of the Act discussed above:
    a. A definition of the term ``major stationary source'' that 
reflects the section 302(j) 100 tpy PM-10 threshold, and a 15 tpy 
significance level for defining major modifications of PM-10, 
consistent with the significance level in 40 CFR part 51.
    b. Section 189(e) of the amended Act requires that the control 
requirements applicable to major stationary sources of PM-10 must also 
apply to major stationary sources of PM-10 precursors, except where the 
Administrator of EPA has determined that such sources do not contribute 
significantly to PM-10 levels which exceed the standard in the area. 
PM-10 precursors may include VOCs, which form secondary organic 
compounds, sulfur dioxide (SO<INF>2), which forms sulfate compounds, 
and NO<INF>X, which form nitrate compounds. Thus, unless the EPA 
Administrator finds otherwise, States must submit rules applying all of 
the NSR provisions mentioned above to sources of PM-10 precursors, 
including the 100 tpy threshold for defining major stationary sources 
and the current significance level thresholds in 40 CFR 51.165(a)(1)(x) 
for each PM-10 precursor pollutant for defining major modifications.
    EPA has not made a finding under section 189(e) that sources of PM-
10 precursors do not contribute significantly in Utah's PM-10 
nonattainment areas. In EPA's notice of proposed approval of the Salt 
Lake and Utah County PM-10 SIPs, EPA stated that PM-10 violations in 
both counties were attributable to sources of both SO<INF>2 and 
NO<INF>X (see 57 FR 60152, December 18, 1992). Approval of these PM-10 
SIPs was promulgated on July 8, 1994 (59 FR 35036). Thus, in accordance 
with section 189(e), Utah is required to regulate new and modified 
major sources of SO<INF>2 and NO<INF>X as precursors to PM-10 in its 
NSR permitting rules.
    In the applicable definition of ``major source'' in UACR R307-1-1, 
the State has established a 100 tpy threshold for any source of PM-10 
or a PM-10 precursor located in a PM-10 nonattainment area or a lesser 
amount if required in part D of the Act. ``PM-10 precursor'' is defined 
in UACR R307-1-1 as including SO<INF>2 and NO<INF>X. In addition, the 
definition of ``major modification'' in UACR R307-1-1 provides that a 
modification that is significant for a PM-10 precursor shall be 
considered significant for PM-10. The State has established a 15 tpy 
significance level for PM-10 and 40 tpy significance levels for both 
SO<INF>2 and NO<INF>X in the definition of ``significant'' in R307-1-1.
    In UACR R307-1-3.3.3.B., the State has adopted an additional 
provision requiring emission offsets for new and modified sources of 
PM-10 and PM-10 precursors that may not normally be subject to the 
nonattainment NSR permitting requirements. Specifically, this provision 
requires new sources or modifications to existing sources with total 
combined net emissions increases of PM-10, SO<INF>2, and NO<INF>X of 
greater than or equal to 25 tpy to obtain emission offsets. For sources 
or modifications between 25 and 50 tpy, the emission offset ratio 
required is 1:1, and for sources or modifications equal to or greater 
than 50 tpy, the emission offset ratio required is 1.2:1. For these 
offset determinations, the State rule provides that PM-10, SO<INF>2, 
and NO<INF>X will be treated on an equal basis.
    This provision was originally submitted as a Group I PM-10 control 
measure for these areas before nonattainment NSR rules for PM-10 were 
required. This measure was continued as a control measure in the PM-10 
SIP submittal for the Salt Lake and Utah County nonattainment areas, 
which EPA approved on July 8, 1994 (59 FR 35036). The basis for this 
measure, according to Section 9.A.7. of the Utah SIP, was to ensure new 
growth did not increase the cap on industrial emissions. Since the 
State now has adopted nonattainment NSR rules for new and modified 
major sources of PM-10 or PM-10 precursors (i.e., new sources greater 
than 100 tpy of PM-10 or a PM-10 precursor) in accordance with the 
requirements of the amended Act, EPA interprets UACR R307-1-3.3.3.B. to 
apply only to those new and modified sources which would not otherwise 
be subject to the major source/major modification nonattainment NSR 
provisions in R307-1-3.
    It is necessary to make this distinction because, in determining 
applicability to the major source nonattainment NSR requirements, EPA 
only allows a source to consider reductions in the same pollutant when 
calculating the potential to emit of a new source or the net emissions 
increase from a modification. Also, in meeting the emission offset 
requirement of the nonattainment NSR provisions once it is determined 
that a source is subject to the nonattainment NSR provisions, EPA 
currently only allows restricted interpollutant trading between PM-10 
and PM-10 precursors. Specifically, new major sources or major 
modifications of a PM-10 precursor are allowed to obtain offsets from 
reductions in PM-10. Otherwise, new major sources and major 
modifications must obtain offsets from reductions in the same 
pollutant.
    As discussed above under ``Applicability of Utah's Nonattainment 
NSR Provisions,'' UACR R307-1-3.1.8.B. specifically provides that the 
Executive Secretary may only issue a permit if it is determined to be 
in accord with the ``new source review requirements for nonattainment 
areas under the Federal Clean Air Act.'' Thus, in order for the State 
to comply with this provision, the State must interpret its regulations 
as stated in the above paragraph. Consequently, the State's provision 
in UACR R307-1-3.3.3.B. applies to new sources or modifications which 
would have combined emissions of PM-10 and PM-10 precursors greater 
than or equal to 25 tpy, but this [[Page 22282]] provision does not 
apply to any new source or modification considered to be major based on 
the emissions of a single pollutant. In the case of a new major source 
or major modification, the nonattainment NSR provisions for major 
sources of UACR R307-1-3, including the general offset requirements in 
R307-1-3.3.3.A., and the nonattainment NSR requirements under the Clean 
Air Act would apply to such source or modification in accordance with 
UACR R307-1-3.1.8.B.
    Because the State has adequately addressed all of the other general 
NSR requirements, EPA finds that the State's NSR program meets all of 
the requirements for all of its PM-10 nonattainment areas.
4. Sulfur Dioxide Nonattainment Areas
    The State of Utah has two SO<INF>2 nonattainment areas, which are 
defined as Salt Lake County and portions of Tooele County. (See 40 CFR 
81.345 for Utah's SO<INF>2 nonattainment area designations.) For 
SO<INF>2 nonattainment areas, States must submit the following NSR 
provisions, in addition to provisions meeting the general NSR 
requirements in sections 172 and 173 of the Act discussed above:
    A definition of the term ``major stationary source'' that reflects 
the section 302(j) 100 tpy SO<INF>2 threshold, and a 40 tpy 
significance level for defining major modifications of SO<INF>2, 
consistent with the significance level in 40 CFR 51.165(a)(1)(x).
    In the definition of ``major source'' in UACR R307-1-1, the State 
has established a 100 tpy threshold for SO<INF>2. In addition, the 
State has established a 40 tpy significance threshold for SO<INF>2 in 
the definition of ``significant'' in R307-1-1. Therefore, EPA finds 
that the State's NSR rules meets the requirements for all of its 
SO<INF>2 nonattainment areas.
    For further information on these requirements and the State's 
provisions which meet these requirements, please see the Technical 
Support Document (TSD) accompanying this notice.

C. Review of VOC Definition Submittal

    EPA has reviewed the State's definition of VOC in UACR R307-1-1 and 
finds that it is consistent with the federal definition in 40 CFR 
51.100(s). For further information, see the TSD.

Final Action

    EPA is approving the revisions to Utah's nonattainment NSR rules in 
UACR R307-1-1 and R307-1-3, which were submitted by the Governor on 
November 12, 1993 and May 20, 1994 for approval in the SIP. The State 
of Utah has submitted an approvable plan to implement the NSR 
provisions of part D of the Act. Each of the NSR program elements 
discussed above have been adequately addressed in the State's 
regulations for all of the State's nonattainment areas.
    EPA's approval includes the following sections of the Utah Air 
Conservation Regulations: (1) The forward of R307-1-1 and the following 
definitions in R307-1-1 that have been revised since EPA's last 
approval of R307-1-1 (July 8, 1994, 59 FR 35036) and which apply to the 
State's NSR permitting program in R307-1-3: ``air contaminant,'' ``air 
contaminant source,'' ``air pollution,'' ``allowable emissions,'' 
``ambient air,'' ``best available control technology (BACT),'' 
``board,'' ``department,'' ``dispersion technique,'' ``emission 
limitation,'' ``executive director,'' ``executive secretary,'' ``major 
modification,'' ``major source,'' ``PM-10 precursor,'' ``person,'' 
``temporary,'' and ``volatile organic compound (VOC);'' (2) R307-1-
3.1.8; 3) R307-1-3.1.10; and 4) R307-1-3.3.
    The EPA is publishing this action without prior proposal because 
the Agency views this as a noncontroversial action and anticipates no 
adverse comments. However, in a separate document in this Federal 
Register publication, the EPA is proposing to approve the SIP revision 
should adverse or critical comments be filed. Under the procedures 
established in the May 10, 1994 Federal Register (59 FR 24054), this 
action will be effective on July 5, 1995 unless, by June 5, 1995, 
adverse or critical comments are received.
    If the EPA receives such comments, this action will be withdrawn 
before the effective date by publishing a subsequent document that will 
withdraw the final action. All public comments received will then be 
addressed in a subsequent final rule based on this action serving as a 
proposed rule. The EPA will not institute a second comment period on 
this action. Any parties interested in commenting on this action should 
do so at this time. If no such comments are received, the public is 
advised that this action will be effective on July 5, 1995.
    Nothing in this action should be construed as permitting or 
allowing or establishing a precedent for any future request for 
revision to any SIP. Each request for revision to any SIP shall be 
considered separately in light of specific technical, economic, and 
environmental factors and in relation to relevant statutory and 
regulatory requirements.
    The Office of Management and Budget (OMB) has exempted this 
regulatory action from Executive Order 12866 review.
    Under the Regulatory Flexibility Act, 5 U.S.C. 600 et. seq., EPA 
must prepare a regulatory flexibility analysis assessing the impact of 
any proposed or final rule on small entities. 5 U.S.C. 603 and 604. 
Alternatively, EPA may certify that the rule will not have a 
significant economic impact on a substantial number of small entities. 
Small entities include small businesses, small not-for-profit 
enterprises, and government entities with jurisdiction over populations 
of less than 50,000.
    SIP approvals under section 110 and subchapter I, part D of the Act 
do not create any new requirements, but simply approve requirements 
that the State is already imposing. Therefore, because the Federal SIP-
approval does not impose any new requirements, I certify that it does 
not have a significant impact on any small entities affected. Moreover, 
due to the nature of the Federal-state relationship under the Act, 
preparation of a regulatory flexibility analysis would constitute 
Federal inquiry into the economic reasonableness of state action. The 
Act forbids EPA to base its actions concerning SIPs on such grounds. 
Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976); 
42 U.S.C. 7410(a)(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by July 5, 1995. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule 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, Carbon monoxide, 
Hydrocarbons, Incorporation by reference, Intergovernmental relations, 
Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides, Volatile organic compounds.
    Dated: March 24, 1995.
Robert L. Duprey,
Acting Regional Administrator.

    Part 52, chapter I, title 40 of the Code of Federal Regulations is 
amended as follows: [[Page 22283]] 

PART 52--[AMENDED]

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

    Authority: 42 U.S.C. 7401-7671q.

Subpart TT--Utah

    2. Section 52.2320 is amended by adding paragraph (c)(28) to read 
as follows:


Sec. 52.2320  Identification of plan.

* * * * *
    (c) * * *
    (28) On November 12, 1993, the Governor of Utah submitted revisions 
to its permitting requirements to satisfy the nonattainment new source 
review provisions in the amended Clean Air Act for all of its 
nonattainment areas. On May 20, 1994, the Governor of Utah submitted a 
revision to Utah's definition of volatile organic compounds.
    (i) Incorporation by reference.
    (A) Utah Air Conservation Regulations, R307-1-1, the forward and 
the following definitions: ``air contaminant,'' ``air contaminant 
source,'' ``air pollution,'' ``allowable emissions,'' ``ambient air,'' 
``best available control technology (BACT),'' ``board,'' 
``department,'' ``dispersion technique,'' ``emission limitation,'' 
``executive director,'' ``executive secretary,'' ``major 
modification,'' ``major source,'' ``PM-10 precursor,'' ``person,'' 
``temporary,'' and ``volatile organic compound (VOC);'' effective 
November 15, 1993, printed June 24, 1994.
    (B) Utah Air Conservation Regulations, R307-1-3.1.8, R307-1-3.1.10, 
and R307-1-3.3; effective August 16, 1993, printed May 26, 1994.
    (ii) Additional material.
    (A) Letter dated October 18, 1994 from Russell A. Roberts to 
Douglas M. Skie clarifying applicability of Utah's nonattainment new 
source review permitting requirements.

[FR Doc. 95-10821 Filed 5-4-95; 8:45 am]
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