Document ID: EPA-R09-OAR-2017-0255-0002
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Arizona; Stationary Sources; New Source Review
Posted Date: 2017-06-01T04:00Z

[Federal Register Volume 82, Number 104 (Thursday, June 1, 2017)]
[Proposed Rules]
[Pages 25213-25221]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-10946]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2017-0255; FRL-9963-08-Region 9]

Air Plan Approval; Arizona; Stationary Sources; New Source Review

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing 
approval of regulatory revisions to the Arizona Department of 
Environmental Quality (ADEQ) portion of the applicable state 
implementation plan (SIP) for the State of Arizona. These revisions are 
primarily intended to make corrections to ADEQ's SIP-approved rules for 
the issuance of New Source Review (NSR) permits for stationary sources, 
with a focus on preconstruction permit requirements under the Clean Air 
Act (CAA or Act) for major sources and major modifications. On November 
2, 2015, we took final action on a SIP submittal from ADEQ that 
significantly updated ADEQ's SIP-approved NSR permitting program. 
However, that action identified several deficiencies in ADEQ's program 
that needed to be corrected. This proposed action will correct a 
substantial portion of the deficiencies we identified in that 2015 
action. We are seeking comment on our proposed action and plan to 
follow with a final action.

DATES: Any comments must arrive by July 3, 2017.

ADDRESSES: Submit comments, identified by Docket ID No. EPA-R09-OAR-
2017-0255, at http://www.regulations.gov, or via email to 
R9airpermits@epa.gov. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be removed or edited 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 https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Lisa Beckham, EPA Region 9, (415) 972-
3811, beckham.lisa@epa.gov.

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

Table of Contents

I. The State's Submittal
    A. Which rules did the State submit?
    B. Are there previous versions of the rules in the Arizona SIP?
    C. What is the purpose of the EPA's proposed rule?
II. The EPA's Evaluation
    A. How is the EPA evaluating the State's rules?
    B. Do the rules meet the evaluation criteria?
    C. Review of Rules Requested To Be Removed From the SIP
    D. Remaining NSR Deficiencies
    E. Federal Implementation Plan for GHGs and ADEQ's PSD Program
    F. The EPA's Recommendations To Further Improve the State's 
Rules
    G. Do the rules meet the evaluation criteria under Sections 
110(l) and 193 of the Clean Air Act?

[[Page 25214]]

    H. Conclusion
III. Public Comment and Proposed Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

Definitions

    For this document, we are giving meaning to certain words or 
initials as follows:
    (i) The words or initials Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.
    (ii) The initials ADEQ mean or refer to the Arizona Department of 
Environmental Quality.
    (iii) The initials A.R.S. mean or refer to the Arizona Revised 
Statutes.
    (iv) The initials BACT mean or refer to Best Available Control 
Technology.
    (v) The initials CFR mean or refer to Code of Federal Regulations.
    (vi) The words EPA, we, us or our mean or refer to the United 
States Environmental Protection Agency.
    (vii) The initials FIP mean or refer to Federal Implementation 
Plan.
    (viii) The initials GHG mean or refer to greenhouse gas.
    (ix) The initials IBR mean or refer to incorporation by reference.
    (x) The initials NAAQS mean or refer to National Ambient Air 
Quality Standards.
    (xi) The initials NA-NSR mean or refer to Nonattainment New Source 
Review.
    (xii) The initials NSR mean or refer to New Source Review.
    (xiii) The initials PAL mean or refer to Plantwide Applicability 
Limits.
    (xiv) The initials PM10 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 10 micrometers (coarse 
particulate matter).
    (xv) The initials PM2.5 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 2.5 micrometers (fine 
particulate matter).
    (xvi) The initials PSD mean or refer to Prevention of Significant 
Deterioration.
    (xvii) The initials SIP mean or refer to State Implementation Plan.
    (xviii) The initials SMC mean or refer to significant monitoring 
concentration.
    (xix) The words State or Arizona mean the State of Arizona, unless 
the context indicates otherwise.
    (xx) The initials TSD mean or refer to the technical support 
document for this action.
    (xxi) The initials VOC mean or refer to volatile organic compound.

I. The State's Submittals

A. Which rules did the State submit?

    On April 28, 2017, ADEQ submitted regulatory revisions for the ADEQ 
portion of the Arizona SIP to the EPA. This SIP revision submittal, 
which is the subject of this action and is referred to herein as the 
``April 2017 NSR submittal,'' contains revisions to ADEQ's 
preconstruction review and permitting program requirements. These 
revisions are intended to correct deficiencies in ADEQ's SIP-approved 
NSR program related to the requirements under both part C (prevention 
of significant deterioration or PSD) and part D (nonattainment new 
source review or NA-NSR) of title I of the Act, which apply to major 
stationary sources and major modifications of such sources. The 
preconstruction review and permitting programs are often collectively 
referred to as ``New Source Review'' or NSR.
    Table 1 lists the rules in the April 2017 NSR submittal, all of 
which we are proposing for SIP approval in this action, along with the 
rules' effective dates under State law. The submitted rules are from 
the Arizona Administrative Code, Title 18--Environmental Quality, 
Chapter 2--Department of Environmental Quality--Air Pollution Control, 
Articles 1 through 4.

                          Table 1--Submitted Rules Proposed for Approval in This Action
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                   Rule                                   Title                      State effective date
----------------------------------------------------------------------------------------------------------------
R18-2-101 (except 20).....................  Definitions.....................  March 21, 2017.
R18-2-201.................................  Particulate Matter: PM10 and      March 21, 2017.
                                             PM2.5.
R18-2-203.................................  Ozone...........................  March 21, 2017.
R18-2-217.................................  Designation and Classification    March 21, 2017.
                                             of Attainment Areas.
R18-2-218.................................  Limitation of Pollutants in       March 21, 2017.
                                             Classified Attainment Areas.
R18-2-330.................................  Public Participation............  March 21, 2017.
R18-2-332.................................  Stack Height Limitation.........  March 21, 2017.
R18-2-401.................................  Definitions.....................  March 21, 2017.
R18-2-402.................................  General.........................  March 21, 2017.
R18-2-403.................................  Permits for Sources Located in    March 21, 2017.
                                             Nonattainment Areas.
R18-2-404.................................  Offset Standards................  March 21, 2017.
R18-2-405.................................  Special Rule for Major Sources    March 21, 2017.
                                             of VOC or Nitrogen Oxides in
                                             Ozone Nonattainment Areas
                                             Classified as Serious or Severe.
R18-2-406.................................  Permit Requirements for Sources   March 21, 2017.
                                             Located in Attainment and
                                             Unclassifiable Areas.
R18-2-407.................................  Air Quality Impact Analysis and   March 21, 2017.
                                             Monitoring Requirements.
R18-2-408.................................  Innovative Control Technology...  March 21, 2017.
R18-2-410.................................  Visibility and Air Quality        March 21, 2017.
                                             Related Value Protection.
R18-2-411.................................  Permit Requirements for Sources   March 21, 2017.
                                             that Locate in Attainment or
                                             Unclassifiable Areas and Cause
                                             or Contribute to a Violation of
                                             Any National Ambient Air
                                             Quality Standard.
R18-2-412.................................  PALs............................  March 21, 2017.
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On May 9, 2017, ADEQ's April 2017 NSR submittal was determined to meet 
the completeness criteria in 40 CFR part 51, appendix V, which must be 
met before formal EPA review.
    The proposed revisions will apply to all areas and sources of 
Arizona where ADEQ has jurisdiction. Currently, ADEQ has permitting 
jurisdiction for the following stationary source categories in all 
areas of Arizona: smelting of metal ores, coal-fired electric 
generating stations, petroleum refineries, Portland cement plants, and 
portable sources. ADEQ also has permitting jurisdiction for major and 
minor sources in the following counties: Apache, Cochise, Coconino, 
Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Santa Cruz, Yavapai, 
and Yuma. Finally, ADEQ has permitting jurisdiction over major sources 
in Pinal

[[Page 25215]]

County \1\ and the Rosemont Copper Mine in Pima County.
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    \1\ ADEQ has delegated implementation of the major source 
program to the Pinal County Air Quality Control District.
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B. Are there previous versions of the rules in the Arizona SIP?

    Table 2 lists the existing rules in the Arizona SIP that would be 
superseded or removed from the Arizona SIP as part of our proposed 
action. If the EPA were to take final action as proposed herein, these 
rules generally would be replaced in the SIP by the submitted set of 
rules listed in Table 1.

                     Table 2--SIP Rules Proposed for Removal From Arizona SIP in This Action
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                                                                  EPA approval
                 Rule                            Title                date          Federal Register citation
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R9-3-301(I) and (K)...................  Installation Permits:        05/05/1982  47 FR 19326
                                         General.
R9-3-304(H)...........................  Installation Permits in      05/03/1983  48 FR 19878
                                         Attainment Areas.
R18-2-101.............................  Definitions............      11/23/2014  79 FR 56655
                                                                      11/2/2015  80 FR 67319
R18-2-201.............................  Particulate Matter:          09/23/2014  79 FR 56655
                                         PM10 and PM2.5.
R18-2-203.............................  Ozone: One-hour              09/23/2014  79 FR 56655
                                         Standard and Eight-
                                         hour Averaged Standard.
R18-2-217.............................  Designation and               11/2/2015  80 FR 67319
                                         Classification of
                                         Attainment Areas.
R18-2-218.............................  Limitation of                 11/2/2015  80 FR 67319
                                         Pollutants in
                                         Classified Attainment
                                         Areas.
R18-2-330.............................  Public Participation...       11/2/2015  80 FR 67319
R18-2-332.............................  Stack Height Limitation       11/2/2015  80 FR 67319
R18-2-401.............................  Definitions............       11/2/2015  80 FR 67319
R18-2-402.............................  General................       11/2/2015  80 FR 67319
R18-2-403.............................  Permits for Sources           11/2/2015  80 FR 67319
                                         Located in
                                         Nonattainment Areas.
R18-2-404.............................  Offset Standards.......       11/2/2015  80 FR 67319
R18-2-405.............................  Special Rule for Major        11/2/2015  80 FR 67319
                                         Sources of VOC or
                                         Nitrogen Oxides in
                                         Ozone Nonattainment
                                         Areas Classified as
                                         Serious or Severe.
R18-2-406.............................  Permit Requirements for       11/2/2015  80 FR 67319
                                         Sources Located in
                                         Attainment and
                                         Unclassifiable Areas.
R18-2-407.............................  Air Quality Impact            11/2/2015  80 FR 67319
                                         Analysis and
                                         Monitoring
                                         Requirements.
R18-2-412.............................  PALs...................       11/2/2015  80 FR 67319
----------------------------------------------------------------------------------------------------------------

C. What is the purpose of the EPA's proposed rule?

    The purpose of this proposed rule is to propose to update the 
Arizona SIP by approving the rule revisions submitted in ADEQ's 2017 
NSR submittal, to discuss the basis for our proposed approval action, 
and to provide notice of and seek public comment on our proposed 
action. We present our evaluation of the rules submitted by ADEQ in its 
April 2017 NSR submittal, which are identified in Table 1 above, as 
compared with applicable requirements under the CAA and EPA 
regulations, particularly with respect to the PSD and NA-NSR 
requirements applicable to major sources and major modifications. We 
provide our reasoning in general terms below, and include our more 
detailed analysis in the Technical Support Document for this action 
(TSD), which is available in the docket for this proposed rulemaking. 
This proposed rule also discusses our proposal to approve ADEQ's 
request that we remove older, outdated rules from the Arizona SIP and 
our rationale for doing so.

II. The EPA's Evaluation

A. How is the EPA evaluating the State's rules?

    The EPA has reviewed the provisions submitted for SIP approval by 
ADEQ that are the subject of this action for compliance with the CAA's 
general requirements for SIPs in CAA section 110(a)(2), EPA's 
regulations for stationary source permitting programs in 40 CFR part 
51, subpart I, and the CAA requirements for SIP revisions in CAA 
section 110(l) and 193.
    With respect to procedures, CAA sections 110(a) and 110(l) require 
that revisions to a SIP be adopted by the state after reasonable notice 
and public hearing. EPA has promulgated specific procedural 
requirements for SIP revisions in 40 CFR part 51, subpart F. These 
requirements include publication of notices, by prominent advertisement 
in the relevant geographic area, a public comment period of at least 30 
days, and an opportunity for a public hearing. Based on our review of 
the public process documentation included in the April 2017 NSR 
submittal, we find that ADEQ has provided sufficient evidence of public 
notice and opportunity for comment and public hearing prior to adoption 
and submittal of these rules to the EPA.
    With respect to substantive requirements, we have reviewed the ADEQ 
provisions that are the subject of our current action in accordance 
with the CAA and applicable regulatory requirements, focusing primarily 
on those that apply to PSD permit programs under part C of title I of 
the Act and Nonattainment NSR permit programs under part D of title I 
of the Act. The submitted rules are intended to correct a substantial 
portion of the deficiencies in ADEQ's NSR program that we identified in 
our November 2, 2015 final action and a separate June 22, 2016 final 
action issued by the EPA, discussed below.
    On November 2, 2015 (80 FR 67319), the EPA published a final 
limited approval and limited disapproval of revisions to the ADEQ 
portion of the Arizona SIP (referred to hereinafter as ``our 2015 NSR 
action'').\2\ Our 2015 NSR action updated ADEQ's SIP-approved NSR 
permitting program, but identified deficiencies that need to be 
corrected for the EPA to grant full approval of ADEQ's NSR program. 
Thus, our 2015 NSR action would trigger an obligation on the EPA to 
promulgate a Federal Implementation Plan (FIP) to address the 
deficiencies that were the basis for our limited disapproval action 
unless the State of Arizona corrects the

[[Page 25216]]

deficiencies, and the EPA approves the related plan revisions, within 
two years of that final action. In addition, to avoid sanctions under 
section 179 of the Act, ADEQ has 18 months from December 2, 2015, the 
effective date of our 2015 NSR action, to correct those deficiencies 
related to part D of title I of the Act.
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    \2\ We also finalized other actions, which included a partial 
disapproval related to the fine particulate matter 
(PM2.5) significant monitoring concentration, and limited 
approvals, without corresponding limited disapprovals, related to 
section 189(e) of the Act.
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    On June 22, 2016 (81 FR 40525), the EPA also published a separate 
but related final limited disapproval action for ADEQ's NA-NSR program, 
as ADEQ's program did not fully address fine particulate matter 
(PM2.5) precursors as required by section 189(e) of the Act 
(referred to hereinafter as ``our 2016 PM2.5 precursor 
action''). This action triggered an obligation on the EPA to promulgate 
a FIP to address this deficiency unless the State of Arizona corrects 
the deficiency, and the EPA approves the related plan revisions, within 
two years of the final action. In addition, to avoid sanctions under 
section 179 of the Act, ADEQ has 18 months from the July 22, 2016 
effective date of our 2016 PM2.5 precursor action to correct 
the deficiency as it relates to part D of title I of the Act.

B. Do the rules meet the evaluation criteria?

    Please see our 2015 NSR action, including our proposed action on 
March 18, 2015 (80 FR 14044), for a detailed discussion of the approval 
criteria for the NSR program and how ADEQ's NSR rules reviewed in that 
action generally meet the approval criteria despite certain 
deficiencies that require correction for the EPA to fully approve 
ADEQ's NSR program. In this action, we are focusing our review on the 
revisions that ADEQ made to correct the deficiencies we identified in 
our 2015 NSR action and our 2016 PM2.5 precursor action. We 
also reviewed other revisions ADEQ made in the rules submitted in 
ADEQ's April 2017 NSR action to ensure that the revised language was 
consistent with applicable requirements of the Act and EPA regulations.
    We are proposing approval of ADEQ's 2017 NSR submittal because it 
would correct numerous deficiencies and is otherwise consistent with 
the requirements for NSR programs and the Act. If approved, this action 
would not correct all the deficiencies in ADEQ's NSR program previously 
identified by the EPA, but it would correct those deficiencies that 
would potentially lead to sanctions under section 179 of the Act 
because of our 2015 NSR action. ADEQ expects to correct the remaining 
deficiencies in a subsequent SIP submittal. Our detailed analysis of 
ADEQ's 2017 NSR submittal is provided in the TSD for this action. Here 
we briefly discuss the previously identified deficiencies that this 
action, if finalized, would correct.
1. Deficiencies Corrected Related to Public Availability of Information
    In our 2015 NSR action, we found that ADEQ's NSR program did not 
ensure, for all sources subject to NSR review, that certain 
requirements related to public availability of information were met. 
Specifically, ADEQ's program did not ensure that the information 
submitted by the owner or operator and ADEQ's analysis of effects of 
air quality would be available for public inspection in at least one 
location in the affected area. See 40 CFR 51.161(b)(1). To address this 
deficiency, ADEQ revised its public notice requirements to ensure that 
the necessary documents will be available for public inspection in the 
``area affected'' by the action, including the Director's analysis of 
the effects on ambient air quality. See revised R18-2-330(D) and (F).
2. Deficiencies Corrected Related to Stack Height Provisions
    Regarding requirements for stack heights and good engineering 
practice, in our 2015 NSR action, we found that ADEQ's NSR program did 
not adequately address the following requirements. First, we found that 
ADEQ's NSR program did not meet the public hearing requirements in 40 
CFR 51.164 and 51.118(a) because the referenced procedures were not in 
the SIP or submitted for SIP approval. ADEQ addressed this issue by 
revising R18-2-332 to reference the SIP-approved public notice 
requirements in R18-2-330. See revised R18-2-332(E). We found that 
ADEQ's rules did not contain language that met the exception to the 
stack height provisions provided in 40 CFR 51.118(b). In addition, R18-
2-332 incorrectly referenced July 1, 1975 instead of July 1, 1957. 
ADEQ's current SIP submittal has corrected these deficiencies; see 
revised R18-2-332(B)(1) and (B)(2). We also determined that ADEQ's NSR 
program did not contain a requirement that owners or operators seeking 
to rely on the equation in 40 CFR 51.100(ii)(2)(i) produce evidence 
that the equation was relied on in establishing an emission limitation. 
ADEQ's currently submitted rules have added this requirement; see 
revised R18-2-332(C)(2)(a). Finally, ADEQ's NSR program previously 
contained a provision at R18-2-332(D) which provided additional 
provisions for sources ``seeking credit because of plume impaction 
which results in concentrations in violation of national ambient air 
quality standards or applicable maximum allowable increases.'' This 
provision is not contained in the federal regulations and appeared to 
allow for the use of stack heights beyond good engineering practice 
(GEP) stack height, as defined in 40 CFR 51.100(ii), which we 
identified as a deficiency in our 2015 NSR action. ADEQ has now 
addressed this deficiency by removing this provision from R18-2-332.
3. Deficiencies Corrected Related to the CAA NA-NSR Program
    In our 2015 NSR action, we found that ADEQ's NSR program often 
referred to Articles 9 and/or 11 of ADEQ's regulations where the 
federal regulations refer to 40 CFR part 60, 61, or 63; or, similarly, 
sections 111 or 112 of the Act (see 40 CFR 51.165(a)(1)(xiii)--lowest 
achievable emission rate, and (a)(1)(xl)--best available control 
technology).\3\ Articles 9 and 11 are where ADEQ incorporates by 
reference the federal regulations in 40 CFR parts 60, 61, and 63 (which 
the EPA implements under sections 111 and 112 of the Act). However, 
these Articles were not in the SIP, had not been submitted for SIP 
approval, and did not necessarily contain provisions equivalent to all 
the subparts in parts 60, 61, and 63. In its current submittal, ADEQ 
has revised its rules to remove the references to Article 9 and 11 and 
instead reference the requirements in 40 CFR part 60, 61, or 63; 
sections 111 and 112; and/or the new source performance standard or 
national emission standards for hazardous air pollutants. See the 
revised R18-2-101(21), R18-2-401(11) and R18-2-406(A)(4).
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    \3\ Our 2015 NSR action also identified the definition for 
``regulated NSR pollutant'' in 40 CFR 51.165(a)(1)(xxxvii) as being 
part of this deficiency. However, upon further review, that 
determination was in error as the federal definition does not 
reference part 60, 61, 63 or sections 111 and 112 of the Act.
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    We also determined in our 2015 NSR action that ADEQ's SIP-approved 
NSR rules governing nonattainment NSR contained several definitions 
that were not at least as stringent as the corresponding federal 
definition. In its April 2017 NSR submittal, ADEQ has revised its 
definitions for consistency with the federal definitions in 40 CFR 
51.165(a)(1). Specifically, ADEQ corrected the definitions for 
stationary source in revised R18-2-101(140), major stationary source in 
revised R18-2-401(13), net emissions increase in revised R18-2-101(88), 
significant in revised R18-2-101(131) and R18-2-405(B), allowable 
emissions in revised R18-2-101(13), federally enforceable in

[[Page 25217]]

revised R18-2-101(53), regulated NSR pollutant in revised R18-2-
101(122), and projected actual emissions in revised R18-2-401(23).
    40 CFR 51.165(a)(3)(ii)(G) requires that credit for emission 
reductions can be claimed only to the extent that the reviewing 
authority has not relied on it in issuing any permit under regulations 
approved pursuant to 40 CFR part 51, subpart I, or the state has not 
relied on it in demonstration of attainment or reasonable further 
progress. In our 2015 NSR action, we found that ADEQ's NSR program 
generally addresses this requirement at R18-2-404(H), but also needed 
to include references to minor NSR requirements, which are to be 
approved as part of ADEQ's NSR regulations under subpart I. In its 
April 2017 NSR submittal, ADEQ added a reference to its minor NSR rule 
R18-2-334, but not its registration program in R18-2-302.01. We 
determined that this is acceptable as sources in the registration 
program cannot use emission reductions to obtain a registration. That 
is, as ADEQ explained in its April 2017 NSR submittal, R18-2-302.01 
does not provide for the imposition of minor NSR emission limits; 
rather, those limits would only be imposed on a source that was denied 
registration and required to obtain a permit meeting the minor NSR 
requirements (which are in R18-2-334). See revised R18-2-404(H).
    We determined in our 2015 NSR action that ADEQ's NSR program 
contained an apparent typographical error in R18-2-402 by including an 
incorrect cross reference that did not meet the requirements of 40 CFR 
51.165(a)(6) that ensures owners and operators document and maintain a 
record of certain applicability-related information. In its current 
submittal, ADEQ has corrected this error; see revised R18-2-
402(F)(1)(c). Additionally, we previously found that ADEQ's NSR program 
did not require owners or operators to make information required under 
40 CFR 51.165(a)(6) available for review upon request by the Director 
or the public, as required by 40 CFR 51.165(a)(7). ADEQ's current 
submittal has added this requirement; see revised R18-2-402(F)(7).
    40 CFR 51.165(a)(9)(i) requires that increases in emissions be 
offset by reductions in emissions using a ratio of emission decreases 
to emission increases of at least 1 to 1. ADEQ's rules contained this 
requirement in R18-2-404, but we found in our 2015 NSR action that it 
could have been interpreted as establishing the ratio as increases to 
decreases, instead of decreases to increases. In addition, R18-2-404(A) 
referred to additional offset requirements in R18-2-405, but did not 
refer to the offset requirement in other parts of R18-2-404. ADEQ has 
corrected these deficiencies in its current SIP submittal; see revised 
R18-2-402(A).
    40 CFR 51.165(a)(11) requires emission offsets to be obtained for 
the same regulated NSR pollutant, unless interprecursor offsetting is 
permitted for a particular pollutant, as further specified in the rule. 
We found in our 2015 NSR action that ADEQ's rules did not contain a 
specific requirement that offsets must be for the same regulated 
pollutant. In its April 2017 NSR submittal, ADEQ has clarified its 
rules consistent with 40 CFR 51.165(a)(11). See revised R18-2-404(A). 
In addition, ADEQ added an option to R18-2-404(A) to use interprecursor 
trading for ozone that is consistent with new revisions to 40 CFR 
51.165(a)(11)(i).
    40 CFR 51.165(b) requires that SIPs have a preconstruction program 
that satisfies the requirements of section 110(a)(2)(D)(i) of the Act 
for any new major stationary source or major modification that would 
locate in an attainment area, but would cause or contribute to a 
violation of a national ambient air quality standard (NAAQS) in any 
adjacent area. ADEQ's rules contained provisions for 40 CFR 51.165(b) 
in R18-2-406 that generally met this requirement. However, we found in 
our 2015 NSR action that ADEQ's regulations referred to the State's 
primary or secondary ambient air quality standards, and thus did not 
fully meet the requirements in 40 CFR 51.165(b)(1) and (2) as ADEQ's 
program did not ensure such standards would apply to areas outside of 
Arizona. In this current SIP submittal, ADEQ has addressed this issue 
by revising its program to instead refer to the NAAQS, which are 
applicable in all areas. These program requirements were removed from 
R18-2-406 and included in the new R18-2-411--Permit Requirements for 
Sources that Locate in Attainment or Unclassifiable Areas and Cause or 
Contribute to a Violation of any National Ambient Air Quality Standard. 
See revised R18-2-101(85), R18-2-401(27), and newly adopted R18-2-411.
    In our 2015 NSR action, we found certain deficiencies in ADEQ's 
rules regarding requirements for Plantwide Applicability Limits (or 
Actuals PALs), which have been corrected in ADEQ's 2017 NSR submittal. 
First, ADEQ's provisions for PALs did not specify that modifications 
under a PAL do not need approval through the nonattainment major NSR 
program as required by 40 CFR 51.165(f)(1)(iii)(B), as only the PSD 
program was mentioned. ADEQ's current submittal has added language to 
include this provision, see revised R18-2-412(A)(2)(b). ADEQ's NA-NSR 
program did not contain a definition for major emissions unit as is 
required by 40 CFR 51.165(f)(2)(iv). ADEQ has now added this term at 
R18-2-401(12). 40 CFR 51.165(f)(9)--ADEQ's PAL provisions at R18-2-
412(H) contained an incorrect reference, and R18-2-412(H)(5) used 
``eliminated'' where the federal regulation uses ``established.'' ADEQ 
has now corrected these deficiencies; see revised R18-2-412(H)(4) and 
(H)(5). ADEQ's program also contained incorrect cross-references in 
meeting the requirements of 40 CFR 51.165(f)(10), as follows: PAL 
renewal provisions at R18-2-412(I)(1) needed to contain a reference to 
subsection (D) of R18-2-412 instead of (F), and R18-2-(I)(4)(a) needed 
to reference subsection (E) of R18-2-412. ADEQ's current SIP submittal 
shows that it has made these corrections; see revised R18-2-412(I)(1) 
and (I)(4)(a).
    Finally, section 173(a)(4) of the Act requires that NA-NSR permit 
programs shall provide that permits to construct and operate may be 
issued if ``the Administrator has not determined that the applicable 
implementation plan is not being adequately implemented for the 
nonattainment area in which the proposed source is to be constructed or 
modified.'' We found in our 2015 NSR action that ADEQ's program did not 
contain this provision. ADEQ's current SIP submittal has added this 
requirement. See revised R18-2-403(A)(4).
4. Deficiencies Corrected Related to the CAA PSD Program
    In our 2015 NSR action, we found that ADEQ's NSR rules often 
referred to Articles 9 and/or 11 of ADEQ's regulations where the 
federal regulations refer to 40 CFR parts 60, 61, or 63; or, similarly, 
sections 111 or 112 of the Act (see 40 CFR 51.166(b)(1)(iii)(aa), 
(b)(12), (b)(16)(i), (b)(17), (b)(47)(ii)(c), (b)(49)(ii), 
(i)(1)(ii)(aa), and (j)). Articles 9 and 11 are where ADEQ incorporates 
by reference the federal regulations in 40 CFR parts 60, 61, and 63 
(which EPA implements under sections 111 and 112 of the Act). However, 
these Articles were not in the SIP, had not been submitted for SIP 
approval, and do not necessarily contain provisions equivalent to all 
the subparts in parts 60, 61, and 63. In its current SIP submittal, 
ADEQ has revised its rules to remove the references to Article 9 and 11 
and instead reference the requirements in 40 CFR part 60, 61, or

[[Page 25218]]

63; and/or sections 111 and 112. See revised R18-2-101(53)(a), 
(124)(b); R18-2-401(11); R18-2-101(21); R18-2-402(G)(2); and R18-2-
406(A)(4).
    ADEQ adopted the PSD increments, or maximum allowable increases, in 
R18-2-218--Limitation of Pollutants in Classified Attainment Areas. 
However, we determined in our 2015 NSR action that in other rules ADEQ 
used ``increment'' or ``incremental ambient standard'' where it 
appeared the intent is to refer to the standards established in R18-2-
218 and identified in ADEQ's rules as the ``maximum allowable 
increases.'' ADEQ's April 2017 NSR submittal addresses this issue by 
generally revising these references to ``maximum allowable increases.'' 
See revised R18-2-406(E), R18-2-412(G)(2)(b), R18-2-101(51).\4\
---------------------------------------------------------------------------

    \4\ ADEQ also needs to correct this issue in R18-2-319(A)(3) and 
R18-2-320(B)(6) per our 2015 NSR action. While ADEQ has recently 
revised these rules to address this issue, they were not included in 
the April 2017 NSR submittal.
---------------------------------------------------------------------------

    In our 2015 NSR action, we found that ADEQ's program did not ensure 
that sources subject to the PSD program would be reviewed for 
compliance with the 2012 PM2.5 NAAQS of 12.0 [micro]g/m\3\, 
which was effective March 18, 2013 (see 78 FR 3086). See 40 CFR 
51.166(b)(2)(iii)(i)(2), (b)(35), (d), (g)(3)(ii), (k), and (m)(1). 
This new NAAQS is required to be implemented for PSD sources (unless 
otherwise grandfathered under provisions at 40 CFR 51.166(i)(10)) 
beginning with the effective date of the NAAQS. In its April 2017 NSR 
submittal, ADEQ revised its program to more broadly reference the 
NAAQS, ensuring that this requirement is met. See the revised R18-2-
218(F)(5)(b)(ii), R18-2-401(27), R18-2-406(A)(5) and R18-2-407(B).
    In our 2015 NSR action, we noted that ADEQ's PSD program, at R18-2-
406(A), contained a reference to rule R18-2-408, but R18-2-408 was not 
in the SIP and had not been submitted for SIP approval. ADEQ included 
R18-2-408 in the April 2017 NSR submittal, and we are proposing to 
approve it into the SIP.
    In our 2015 NSR action, we determined that ADEQ's definitions 
applicable to the PSD program did not fully meet 40 CFR 51.166(b)(1), 
which requires each state plan to contain specific definitions for the 
PSD program. We have reviewed the revised definitions included in the 
current SIP submittal as compared with the federal PSD definitions in 
40 CFR 51.166(b) and have found that ADEQ's submittal contains the 
definitions necessary to implement a PSD program. ADEQ made revisions 
that corrected the following definitions from 40 CFR 51.166(b): Major 
stationary source--see revised R18-2-101(75) and R18-2-401(13), net 
emissions increase--see revised R18-2-101(88), stationary source--see 
revised R18-2-101(140), major source baseline date--see revised R18-2-
218(B)(2)(b), baseline area--see revised R18-2-218(D), allowable 
emissions--see revised R18-2-101(13)(b), federally enforceable--see 
revised R18-2-101(53), complete--see revised R18-2-401(4), 
significant--see revised R18-2-101(131), projected actual emissions--
see revised R18-2-401(23), and regulated NSR pollutant--see revised 
R18-2-101(124).
    Regarding restrictions on area classifications (as Class I, II or 
III), we found in our 2015 NSR action that ADEQ's rules did not 
completely meet the requirements of 40 CFR 51.166(e) and section 162(a) 
of the Act, which require certain areas in existence on August 7, 1977 
to be designated as Class I areas. ADEQ's rules impermissibly limited 
the consideration of boundary changes to such Class I areas to those 
made prior to March 12, 1993. ADEQ has now corrected this deficiency; 
see revised R18-2-217(B). ADEQ's rules also did not contain a provision 
consistent with the federal regulatory requirement for Class I area 
redesignations prior to August 7, 1977 at 40 CFR 51.166(e)(2). ADEQ has 
now corrected this deficiency, see revised R18-2-217(C). In addition, 
ADEQ's rules did not include a provision that is fully consistent with 
the requirements related to designating areas as Class II areas in 40 
CFR 51.166(e)(3). ADEQ corrected this deficiency, see the revised R18-
2-217(D).
    Regarding requirements for exclusions from increment consumption, 
we determined in our 2015 NSR action that ADEQ's rules contained 
provisions that allowed for certain temporary emissions to be excluded 
from increment consumption that did not conform with the requirements 
in 40 CFR 51.166(f)(1)(v) and (f)(4). ADEQ needed to remove the 
Director's discretion to extend the time allowed for temporary 
emissions, and to broaden the reference to the State ambient air 
quality standards to apply to any air quality control region. In its 
current SIP submittal, ADEQ has corrected these deficiencies; see 
revised R18-2-218(F)(5).
    Regarding requirements for redesignating areas as Class I, II or 
II, in our 2015 NSR action, we found that ADEQ's program incorrectly 
applied the provisions in 40 CFR 51.166(g)(1) only to attainment and 
unclassifiable areas. However, this portion of the PSD program applies 
to all areas of the State, including nonattainment areas. This 
deficiency has been corrected in the current SIP submittal; see revised 
R18-2-217(A). ADEQ's rules also previously contained provisions for 
allowing the State to redesignate certain areas under 40 CFR 51.166(g), 
but they did not adequately meet the public participation requirements 
in 40 CFR 51.166(g)(2)(i). ADEQ has now corrected this deficiency; see 
revised R18-2-217(F)(1). In addition, ADEQ's provisions for classifying 
areas to Class III did not clearly identify which areas may be 
designated as Class III as specified in 40 CFR 51.166(g)(3). ADEQ has 
now corrected this deficiency; see revised R18-2-217(G). Concerning 40 
CFR 51.166(g)(3)(ii), ADEQ's rules improperly allowed for redesignation 
to be approved by the Governor's designee. This was inconsistent with 
40 CFR 51.166(g)(3)(ii), which specifically requires the Governor's 
approval. ADEQ has now corrected this deficiency; see revised R18-2-
217(F) and (G). In meeting the requirements of 40 CFR 
51.166(g)(3)(iii), ADEQ rules R18-2-217 also contained a reference to 
``maximum allowable concentration'' which incorrectly referenced R18-2-
218, and referenced only the State's ambient air quality standards, 
which do not generally apply in areas outside of Arizona. In the 
current SIP submittal, ADEQ has corrected this deficiency; see revised 
R18-2-217(G)(4). Also, ADEQ's rules did not meet all the public notice 
requirements for redesignations under 40 CFR 51.166(g)(3)(iv). ADEQ's 
current submittal has corrected this deficiency; see revised R18-2-
217(G).
    At the time of our 2015 NSR action, ADEQ's rules provided an 
exemption for certain portable stationary sources with a prior permit 
that contains requirements equivalent to the PSD requirements in 40 CFR 
51.166 (j) through (r). While this requirement was generally consistent 
with 40 CFR 51.166(i)(1)(iii), we found that ADEQ's rules impermissibly 
expanded this exemption to portable sources that have been issued 
nonattainment NSR permits and PAL permits. ADEQ has corrected this 
deficiency. See revised R18-2-406(E).
    In our 2015 NSR action, we determined that ADEQ's rules did not 
clearly meet the requirements of 40 CFR 51.166(k)(1) because the 
relevant rule provision contained an ``or'' that could be interpreted 
as allowing a source to demonstrate it will not contribute to an 
increase above the significance levels in an adjacent nonattainment 
area in lieu of the demonstration required for the NAAQS and 
increments. In addition, R18-2-406(A)(5)(a) requires that a

[[Page 25219]]

person applying for a PSD permit demonstrate that the project would not 
cause a violation of any maximum allowable increase over the baseline 
concentration in ``any attainment or unclassifiable area,'' but ADEQ's 
definition for ``attainment area'' in the SIP limited attainment areas 
to those ``in the state.'' ADEQ has corrected these deficiencies in its 
current SIP submittal. See revised R18-2-406(A)(5) and R18-2-101(19).
    We determined in our 2015 NSR action that ADEQ's rules did not 
specifically address the requirements of 40 CFR 51.166(n)(1) and (3), 
which require that (1) the owner or operator of a proposed source or 
modification submit all information necessary to perform any analysis 
or make any determination required under procedures established in 
accordance with 40 CFR 51.166, and (2) upon request of the state, the 
owner or operator also provide specified information concerning air 
quality impacts and growth. ADEQ has corrected these deficiencies in 
its current SIP submittal; see revised R18-2-406(L).
    Regarding requirements for sources impacting Class I areas, in our 
2015 NSR action, we found that ADEQ's rules did not fully address the 
requirements in 40 CFR 51.166(p)(1) that relate to notifications to 
EPA, although existing SIP requirements in R9-3-304(H) partially 
addressed the requirements. ADEQ now has corrected this issue by 
submitting R18-2-410 for SIP approval, which contain these requirements 
at R18-2-410(C)(1). In addition, we found in our 2015 NSR action that 
while ADEQ's rules generally included the requirements of 40 CFR 
51.166(p)(3) at R18-2-406, ADEQ's rule contained the phrase ``no 
significant adverse impacts,'' which is inconsistent with the federal 
regulation, which requires a demonstration of ``no adverse impacts.'' 
ADEQ has now corrected this deficiency; see revised R18-2-410(D). 
ADEQ's program also contained outdated maximum allowable increases for 
Class I areas that were not consistent with 40 CFR 51.166(p)(4). ADEQ 
has corrected this deficiency in the current SIP submittal; see revised 
R18-2-410(F).
    In our 2015 NSR action, we found that certain PSD public 
participation requirements were not adequately addressed; these issues 
have been corrected in ADEQ's April 2017 NSR submittal. First, ADEQ's 
rules did not ensure that materials available during the public comment 
period are available in each region in which the proposed source would 
be constructed as required by 40 CFR 51.166(q)(2)(ii). ADEQ has now 
corrected this deficiency. See R18-2-330(D). ADEQ's rules also did not 
require ADEQ to notify the public of (1) the degree of increment 
consumption that is expected from the source or modification, or (2) 
the Director's preliminary determination, as required by 40 CFR 
51.166(q)(2)(iii). ADEQ has corrected this deficiency. See revised R18-
2-402(I). ADEQ's NSR program also did not require ADEQ to make public 
comments and the written notification of its final determination 
available in the same location as the preliminary documents as required 
by 40 CFR 51.166(q)(2)(vi) and (viii). ADEQ has also corrected this 
deficiency; see revised R18-2-402(I).
    Regarding information required to be provided by the source, in our 
2015 NSR action, we found that ADEQ's rules contained a typographical 
error, which did not ensure owners and operators would document and 
maintain records of certain applicability-related information as 
required by 40 CFR 51.166(r)(6). ADEQ corrected this deficiency; see 
revised R18-2-402(F)(6)(b). In addition, we found that ADEQ's submittal 
did not require owners or operators to make information required under 
40 CFR 51.166(r)(6) available for review upon request by the Director 
or the public as required by 40 CFR 51.166(r)(7). ADEQ has corrected 
this deficiency in its current SIP submittal; see revised R18-2-
402(F)(7).
    In our 2015 NSR action, we identified a number of deficiencies in 
ADEQ's rules specifying the requirements for plantwide applicability 
limits (PALs), which have been corrected in its April 2015 NSR 
submittal. The issues are similar to the issues discusses above for 
PALs provisions for the NA-NSR program. First, ADEQ's program did not 
include a definition for major emissions unit as required by 40 CFR 
51.166(w)(2)(iv). ADEQ has added the definition at R18-2-401(12). 
ADEQ's PAL provisions at R18-2-412(H) contained an incorrect reference, 
and R18-2-412(H)(5) used ``eliminated'' where the federal regulation 
uses ``established'', which prevented ADEQ's rules from meeting 40 CFR 
51.166(w)(9). ADEQ has corrected these deficiencies; see revised R18-2-
412(H)(4) and (5). ADEQ's PAL renewal provisions also contained 
incorrect references related to the requirements in 40 CFR 
51.166(w)(10). ADEQ has now corrected those references; see revised 
R18-2-412(I)(1) and (4).
5. Other Revisions and Changes to the EPA's NSR Program and/or ADEQ's 
NSR Program
    Our review of ADEQ's April 2017 NSR submittal also considered 
whether ADEQ's submittal was consistent with other changes made to 
federal NSR program requirements following our 2015 action. These 
changes include: The removal of vacated elements from the PSD program 
related to GHGs (August 19, 2015 at 80 FR 50199); revisions to the 
public noticing provisions for permitting (October 18, 2016 at 81 FR 
71613); SIP requirements for PM2.5 nonattainment areas 
(August 24, 2016 at 81 FR 58010); and the 2015 ozone standard (October 
26, 2015 at 80 FR 65292). As discussed in further detail in our TSD, we 
have determined that ADEQ's program, as updated by the current SIP 
submittal, meets the required elements of these regulatory revisions 
except for one disapproval issue that is already the subject of a 
limited disapproval in our 2016 PM2.5 precursor action. ADEQ 
intends to correct this deficiency in a separate SIP submittal. That 
is, no new disapproval issues have been identified that are associated 
with these changes to the federal NSR requirements.
    Additionally, in our 2015 NSR action we finalized a partial 
disapproval of ADEQ's program related to the significant monitoring 
concentration (SMC) for PM2.5 at 40 CFR 51.166(i)(5)(i)(c). 
Our disapproval action did not require ADEQ to revise its program, as 
our action prevented this portion of ADEQ's program from becoming 
approved into the SIP. However, in its current SIP submittal, ADEQ has 
updated its program to be consistent with the PM2.5 SMC, and 
our current action includes our proposed approval of that change.

C. Review of Rules Requested To Be Removed From the SIP

    In Table 2 of this preamble, we identified the ADEQ rules we are 
proposing to remove from the SIP as part of this action. Except for R9-
2-301(I) and (K) and R9-3-304(H), the ADEQ rules we are proposing to 
replace are older versions of the ADEQ rules in the April 2017 NSR 
submittal. The older versions proposed for removal from the SIP contain 
deficiencies that ADEQ needed to correct. R9-3-301(I) and (K) and R9-3-
304(H) are significantly older rules that were approved into the SIP in 
1982 and 1983 that have since been repealed by ADEQ under State law, 
and the corresponding updated provisions are included in the April 2017 
NSR submittal.

[[Page 25220]]

D. Remaining NSR Deficiencies

    As discussed previously, this action does not address all the 
outstanding limited disapproval issues related to ADEQ's NSR program 
from our 2015 NSR action and our 2016 PM2.5 precursor 
action. Our TSD provides a summary of the remaining limited disapproval 
issues. Our 2015 NSR action triggered a CAA obligation for EPA to 
promulgate a FIP unless Arizona submits, and we approve, plan revisions 
that correct the deficiencies within two years of the effective date of 
our final action. In addition, for deficiencies pertaining to 
requirements under part D of title I of the CAA our action also 
triggers sanctions unless ADEQ submits and we approve SIP revisions 
that correct the deficiencies before 18 months from our final action. 
The EPA has preliminarily determined that ADEQ's April 2017 NSR 
submittal addresses the deficiencies under part D of title I of the CAA 
identified as limited disapproval issues in our 2015 NSR action. ADEQ 
intends to make an additional submittal in order to the meet the FIP 
deadline of December 2, 2017 related to our 2015 action and the 
sanctions deadline of January 22, 2018 for our 2016 PM2.5 
precursor action.

E. Federal Implementation Plan for GHGs and ADEQ's PSD Program

    ADEQ is currently subject to a FIP under the PSD program for GHGs 
because ADEQ has not adopted a PSD program for the regulation of GHGs. 
See 40 CFR 52.37. ADEQ's April 2017 NSR submittal is not intended to 
correct this program deficiency, as regulation of GHG emissions is 
currently prohibited under State law. See A.R.S. section 49-191. In our 
final action, we intend to move the codification of the FIP for GHGs 
for areas under the jurisdiction of ADEQ and certain other areas in 
Arizona from 40 CFR 52.37 to 40 CFR 52.144, where the State of 
Arizona's PSD program approval is listed. Previously, there were 
several other states subject to the FIP for GHGs, and EPA applied the 
FIP to all such states, collectively, at 40 CFR 52.37. See 75 FR 82246 
on Dec. 30, 2010. However, the State of Arizona is the only area that 
remains subject to this GHG-specific FIP. Therefore, it is appropriate 
to move the FIP provision to the regulatory section where Arizona's PSD 
program is identified.
    In addition, if we finalize our action, we also intend to update 40 
CFR 51.144 to clarify that ADEQ has an approved PSD program, except for 
GHGs, under sections 160 through 165 of the Act.

F. The EPA's Recommendations To Further Improve the State's Rules

    The TSD describes additional rule revisions that we recommend that 
ADEQ make the next time ADEQ modifies the rules.

G. Do the rules meet the evaluation criteria under Section 110(l) and 
193 of the Clean Air Act?

    Section 110(l) states: ``Each revision to an implementation plan 
submitted by a State under this chapter shall be adopted by such State 
after reasonable notice and public hearing. The Administrator shall not 
approve a revision of a plan if the revision would interfere with any 
applicable requirement concerning attainment and reasonable further 
progress (as defined in section 7501 of this title), or any other 
applicable requirement of this chapter.''
    With respect to the procedural requirements of CAA section 110(l), 
based on our review of the public process documentation included in 
ADEQ's April 2017 NSR submittal, we find that ADEQ has provided 
sufficient evidence of public notice and opportunity for comment and 
public hearings prior to adoption and submittal of these rules to the 
EPA. With respect to the substantive requirements of section 110(l), we 
have determined that our approval of the 2017 NSR submittal corrects 
numerous deficiencies in ADEQ's program and does not relax any existing 
requirements in the Arizona SIP.
    For the reasons set forth above, we can approve the ADEQ SIP 
revision as proposed in this action under section 110(l) of the Act.
    Section 193 of the Act, which was added by the Clean Air Act 
Amendments of 1990, includes a savings clause that provides, in 
pertinent part: ``No control requirement in effect, or required to be 
adopted by an order, settlement agreement, or plan in effect before 
November 15, 1990, in any area which is a nonattainment area for any 
air pollutant may be modified after November 15, 1990, in any manner 
unless the modification insures equivalent or greater emission 
reductions of such air pollutant.'' We find that the provisions 
included in ADEQ's 2017 NSR submittal would ensure equivalent or 
greater emission reductions as compared to the current SIP-approved NSR 
program in the nonattainment areas under ADEQ's jurisdiction. In 
addition, this action does not modify any pre-1990 requirements. 
Although we are proposing to remove two pre-1990 rules from the SIP--
R9-3-301(I) and (K)--Installation Permits: General and R9-3-304(H)--
Installation Permits in Attainment Areas--we are also proposing to 
approve newer, updated requirements into the SIP that are at least as 
stringent.
    For the reasons set forth above, we can approve the submitted NSR 
program under section 193 of the Act.

H. Conclusion

    For the reasons stated above, and as explained further in our TSD, 
we find that the rules in ADEQ's April 2017 NSR submittal satisfy the 
applicable CAA and regulatory requirements for PSD, and nonattainment 
NSR permit programs under CAA section 110(a)(2)(C) and parts C and D of 
title I of the Act, with the exception of one NA-NSR requirement 
relating to PM2.5 precursors that has already been 
identified as a disapproval issue in a previous action and which ADEQ 
intends to address in a later SIP submittal. The submitted NSR rules 
also adequately address certain deficiencies we identified in our 2015 
NSR action concerning specific requirements in 40 CFR 51.161 and 51.164 
that were evaluated as part of this action. Our proposed approval is 
also consistent with section 110(l) and 193 of the Act. Accordingly, we 
are proposing to approve all the rules in ADEQ's April 2017 NSR 
submittal into the Arizona SIP. In addition, we are also proposing to 
remove the existing SIP-approved rules listed in Table 2 from the SIP, 
as these rules are outdated and mostly being superseded by our proposed 
action.

III. Public Comment and Proposed Action

    As authorized in section 110(k)(3) of the Act, the EPA proposes to 
fully approve the submitted rules into the Arizona SIP because we 
believe they fulfill all relevant requirements. Specifically, we are 
proposing approval of the new and amended ADEQ regulations listed in 
Table 1, above, as a revision to the ADEQ portion of the Arizona SIP. 
We are also proposing to remove from the Arizona SIP the existing rules 
listed in Table 2, as these rules are outdated and mostly being 
superseded by our proposed action.
    We will accept comments from the public on this proposal until July 
3, 2017. If we take final action to approve the submitted rules, our 
final action will incorporate these rules into the federally 
enforceable SIP.

[[Page 25221]]

IV. 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 ADEQ rule listed in Table 1 of this preamble. The EPA has 
made, and will continue to make, these materials available through 
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).

V. Statutory and Executive Order Reviews

    Under the CAA, the EPA 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 approve state choices, 
provided that they meet the criteria of the Act. 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 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 Clean Air Act; and
     Does not provide the EPA with the discretionary authority 
to address, as appropriate, disproportionate human health or 
environmental effects, using practicable and legally permissible 
methods, under Executive Order 12898 (59 FR 7629, February 16, 1994).

In addition, 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. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

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

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

    Dated: May 16, 2017.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2017-10946 Filed 5-31-17; 8:45 am]
 BILLING CODE 6560-50-P