Document ID: EPA-R05-OAR-2014-0242-0004
Agency: epa
Document Type: Proposed Rule
Title: Proposed Approval of Wisconsin PSD Revisions
Posted Date: 2014-06-30T04:00Z

[Federal Register Volume 79, Number 125 (Monday, June 30, 2014)]
[Proposed Rules]
[Pages 36689-36692]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15284]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2014-0242; FRL-9912-86-Region 5]

Approval and Promulgation of Air Quality Implementation Plans; 
Wisconsin; Proposed Approval of Revisions to PSD Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a revision to the Wisconsin State Implementation Plan (SIP), 
submitted by the Wisconsin Department of Natural Resources (WDNR) to 
EPA on March 12, 2014, for parallel processing. The submittal modifies 
Wisconsin's Prevention of Significant Deterioration (PSD) program to 
identify precursors for particulate matter of less than 2.5 micrometers 
(PM2.5), includes the significant emissions rates for 
PM2.5 and revises its definitions of PM2.5 
emissions and emissions of particulate matter of less than 10 
micrometers (PM10). WDNR requested these revisions to 
address disapprovals of two submissions meant to address requirements 
of the 2008 Implementation of New Source Review (NSR) Program for 
PM2.5 and to address a partial disapproval, under section 
110 of the Clean Air Act (CAA), of what is commonly referred to as an 
``infrastructure'' SIP. EPA is proposing approval of Wisconsin's March 
12, 2014, SIP revision because the Agency has made the preliminary 
determination that this SIP revision is in accordance with the CAA and 
applicable EPA regulations regarding PSD.

DATES: Comments must be received on or before July 30, 2014.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2014-0242, by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: damico.genevieve@epa.gov.
    3. Fax: (312) 385-5501.
    4. Mail: Genevieve Damico, Chief, Air Permits Section, Air Programs 
Branch (AR-18J), U.S. Environmental Protection Agency, 77 West Jackson 
Boulevard, Chicago, Illinois 60604.
    5. Hand Delivery: Genevieve Damico, Chief, Air Permits Section, Air 
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West 
Jackson Boulevard, Chicago, Illinois 60604. Such deliveries are only 
accepted during the Regional Office normal hours of operation, and 
special arrangements should be made for deliveries of boxed 
information. The Regional Office official hours of business are Monday 
through Friday, 8:30 a.m. to 4:30 p.m., excluding Federal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2014-0242. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through www.regulations.gov or email. The 
www.regulations.gov Web site is an ``anonymous access'' system, which 
means EPA will not know your identity or contact information unless you 
provide it in the body of your comment. If you send an email comment 
directly to EPA without going through www.regulations.gov your email 
address will be automatically captured and included as part of the 
comment that is placed in the public docket and made available on the 
Internet. If you

[[Page 36690]]

submit an electronic comment, EPA recommends that you include your name 
and other contact information in the body of your comment and with any 
disk or CD-ROM you submit. If EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment. Electronic files should avoid 
the use of special characters, any form of encryption, and be free of 
any defects or viruses. For additional instructions on submitting 
comments, go to section I of the SUPPLEMENTARY INFORMATION section of 
this document.
    Docket: All documents in the docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in www.regulations.gov or in hard copy at the Environmental Protection 
Agency, Region 5, Air and Radiation Division, 77 West Jackson 
Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 
a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. 
We recommend that you telephone Andrea Morgan, Environmental Engineer, 
at (312) 353-6058 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Andrea Morgan, Environmental Engineer, 
Air Permits Section, Air Programs Branch (AR-18J), Environmental 
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, 
Illinois 60604, (312) 353-6058, Morgan.andrea@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. What should I consider as I prepare my comments for EPA?
II. What is the background for this proposed action?
III. Wisconsin's Submittal for Parallel Processing
IV. What is EPA's analysis of Wisconsin's proposed SIP Revision?
V. What action is EPA taking?
VI. Statutory and Executive Order Reviews

I. What should I consider as I prepare my comments for EPA?

    When submitting comments, remember to:
    1. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    2. Follow directions--EPA may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    3. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    4. Describe any assumptions and provide any technical information 
and/or data that you used.
    5. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    6. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    7. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    8. Make sure to submit your comments by the comment period 
deadline.

II. What is the background for this proposed action?

    In May 2008, EPA finalized regulations to implement the NSR 
Implementation Rule for PM2.5 in the PSD and Nonattainment 
NSR (NNSR) programs (2008 PM2.5 NSR Rule). The regulation 
included the creation of the major source threshold, significant 
emissions rate and offset ratios for PM2.5 and the 
identification of PM2.5 precursors. Additionally, the rule 
required states to consider emissions which may condense to form 
particulate matter at ambient temperatures, known as condensables, in 
permitting decisions by January 1, 2011.
    WDNR submitted revisions to its PSD and NNSR programs that were 
intended to address the 2008 PM2.5 NSR Rule in October 2010. 
On October 29, 2012, EPA finalized a narrow disapproval of provisions 
of Wisconsin's infrastructure SIP submittal that were intended to 
identify precursors to PM2.5 and identify PM2.5 
and PM10 condensables (see 77 FR 65478), because the 
submittal lacked specific references to condensables for 
PM2.5 and PM10 for applicability determinations 
and permitting emissions limits, consistent with the 2008 NSR Rule.
    On May 12, 2011, and on March 5, 2012, WDNR submitted revisions to 
its SIP to comply with the 2008 PM2.5 NSR Rule. On July 25, 
2013, EPA finalized disapproval of Wisconsin's submissions because the 
submissions did not explicitly define the precursors of 
PM2.5, nor did they contain the prescribed language to 
ensure that condensables are to be regulated within the 
PM2.5 and PM10 emission limits in Wisconsin's PSD 
and NNSR programs. (see 78 FR 44881)
    The infrastructure SIP requirements contained in sections 110(a)(1) 
and (2) of the CAA are designed to ensure that the structural 
components of each state's air quality management program are adequate 
to meet the state's responsibilities under the CAA. States are required 
to submit infrastructure SIPs to ensure that their SIPs provide for 
implementation, maintenance, and enforcement of the National Ambient 
Air Quality Standards (NAAQS).
    Under section 110(a)(2)(C), states are required to include a 
program for the regulation of construction of new or modified 
stationary sources to meet new NSR requirements under the PSD and NNSR 
programs, and EPA evaluates, in determining whether states have 
satisfied these requirements, the following: (i) Provisions that 
explicitly identify oxides of nitrogen (NOX) as a precursor 
to ozone in the PSD program; (ii) identification of precursors to 
PM2.5 and the identification of PM2.5 and 
PM10 condensables in the PSD program; (iii) PM2.5 
increments in the PSD program; and, (iv) greenhouse gas permitting and 
the ``Tailoring Rule.'' This section also requires states to 
demonstrate that their existing SIPs meet current EPA requirements with 
respect to the NSR program. For example, states must adopt definitions 
that are identical to, or more stringent than, EPA's definitions. Of 
the structural PSD elements in the context of infrastructure SIPs, 
today's rulemaking only addresses Wisconsin's satisfaction of 
provisions that explicitly identify precursors to PM2.5, and 
the identification of PM2.5 and PM10 
condensables.
    The final disapproval of the submission to address the 2008 
PM2.5 NSR Rule and the final partial disapproval of the 
infrastructure SIP triggered the requirement under section 110(c) that 
EPA promulgate a Federal Implementation Plan (FIP) no later than two 
years from the effective dates of the disapprovals, unless the state 
corrects the deficiencies and the Administrator approves the plan or 
plan revision before the Administrator promulgates such FIP.

III. Wisconsin's Submittal for Parallel Processing

    On March 12, 2014, WDNR submitted a draft SIP revision request to 
EPA to revise portions of its PSD and NNSR programs to address 
deficiencies identified in EPA's previous partial infrastructure SIP 
disapproval. On April 15, 2014, WDNR submitted a supplement to its 
request with

[[Page 36691]]

additional information to support its submittal. Since the rules WDNR 
submitted on March 12, 2014, are consistent with the Federal PSD rules, 
final approval of this SIP revision will resolve the deficiencies 
previously identified by EPA in its October 29, 2012, partial 
disapproval and July 25, 2013, disapproval. Wisconsin submitted 
revisions to its rules NR 400, 405, and 408 of the Wisconsin 
Administrative Code. The submittal requests that EPA approve the 
following revised rules into Wisconsin's SIP: (1) NR 400.02(123m) and 
(124); (2) NR 405.02(21)(b)5.a. and b. and 6; (3) NR 405.02(25i)(a), 
(ag) and (ar); (4) 405.02(27)(a)5m; and (5) NR 408.02(20)(e) 5.a and b. 
and 6. At this time EPA is only proposing to take action on the 
portions that pertain to the identification of precursors to 
PM2.5 and identification of PM2.5 and 
PM10 condensables. Specifically, today's proposed rulemaking 
is limited to the following provisions: (1) NR 400.02(123m) and (124); 
(2) NR 405.02(25i)(ag); (3) NR 405.02(25i)(ar)2. and 3.; and, (4) 
405.02(27)(a)5m. EPA proposed approval of the remainder of WDNR's 
submission as it pertains to NOX as a precursor to ozone and 
the definition of major modification in a May 2, 2014 proposed approval 
(79 FR 25063).
    Because portions of this draft SIP revision are not yet state-
effective, Wisconsin requested that EPA ``parallel process'' the SIP 
revision. Under this procedure, the EPA Regional Office works closely 
with the state while developing new or revised regulations. Generally, 
the state submits a copy of the proposed regulation or other revisions 
to EPA before concluding its rulemaking process. EPA reviews this 
proposed state action and prepares a proposed rulemaking action. EPA 
publishes this proposed rulemaking in the Federal Register and solicits 
public comment in approximately the same timeframe during which the 
state finalizes its rulemaking process.
    After Wisconsin submits the formal state-effective SIP revision 
request, EPA will prepare a final rulemaking action for the SIP 
revision. If changes are made to the SIP revision after EPA's proposed 
rulemaking, such changes must be acknowledged in EPA's final rulemaking 
action. If the changes are significant, then EPA may be obliged to 
repropose the action.

IV. What is EPA's analysis of Wisconsin's proposed SIP revision?

    EPA has evaluated WDNR's proposed revision to the Wisconsin SIP in 
accordance with the Federal requirements governing state permitting 
programs. The revisions described in section III above are intended to 
update the Wisconsin SIP to comply with the current rules and address 
deficiencies identified by EPA in the its previous SIP disapprovals. As 
discussed below, EPA is proposing to approve these revisions because 
they meet Federal requirements.
    The 2008 PM2.5 NSR Rule finalized several new 
requirements for SIPS to address sources that emit direct 
PM2.5 and other pollutants that contribute to secondary 
PM2.5 formation. One of these requirements is for PSD 
permits to address pollutants responsible for the secondary formation 
of PM2.5, otherwise known as precursors. In the 2008 
PM2.5 NSR Rule, EPA identified precursors to 
PM2.5 for the PSD program to be sulfur dioxide 
(SO2) and NOX (unless the state demonstrates to 
the Administrator's satisfaction or EPA demonstrates that 
NOX emissions in an area are not a significant contributor 
to that area's ambient PM2.5 concentrations). The 2008 
PM2.5 NSR Rule also specifies that volatile organic 
compounds (VOCs) are not considered to be precursors to 
PM2.5 in the PSD program unless the state demonstrates to 
the Administrator's satisfaction or EPA demonstrates that emissions of 
VOCs in an area are significant contributors to that area's ambient 
PM2.5 concentrations.
    The explicit references to SO2, NOX, and VOCs 
as they pertain to secondary PM2.5 formation are codified at 
40 CFR 51.166(b)(49)(i)(b) and 40 CFR 52.21(b)(50)(i)(b). As part of 
identifying pollutants that are precursors to PM2.5, the 
2008 PM2.5 NSR Rule also required states to revise the 
definition of ``significant'' as it relates to a net emissions increase 
or the potential of a source to emit pollutants. Specifically, 40 CFR 
51.166(b)(23)(i) and 40 CFR 52.21(b)(23)(i) define ``significant'' for 
PM2.5 to mean the following emissions rates: 10 tons per 
year (tpy) of direct PM2.5; 40 tpy of SO2; and 40 
tpy of NOX (unless the state demonstrates to the 
Administrator's satisfaction or EPA demonstrates that NOX 
emissions in an area are not a significant contributor to that area's 
ambient PM2.5 concentrations). WDNR has revised the 
definition of ``regulated NSR air contaminant'' for the PSD program in 
405.02(25i)(ar)2. and 3., consistent with EPA's own PSD regulations. 
WDNR has also revised its PSD significant emission rates to include 
PM2.5 and its precursors in NR 405.02(27)(a)5m, consistent 
with EPA's PSD regulations.
    The 2008 PM2.5 NSR Rule did not require states to 
immediately account for gases that could condense to form particulate 
matter, known as condensables, in PM2.5 and PM10 
emission limits in PSD permits. Instead, EPA determined that states had 
to account for PM2.5 and PM10 condensables for 
applicability determinations and in establishing emissions limitations 
for PM2.5 and PM10 in PSD permits beginning on or 
after January 1, 2011. This requirement is codified in 40 CFR 
51.166(b)(49)(i)(a) and 40 CFR 52.21(b)(50)(i)(a). WDNR's revisions, 
specifically at NR 400.02(123m) and (124) and NR 405.02(25i)(ag), are 
consistent with the PSD requirements obligated by the 2008 
PM2.5 NSR Rule as they relate to PM2.5 and 
PM10 condensables.
    The 2008 PM2.5 NSR Rule also codified requirements for 
PM2.5 in the NNSR program. When WDNR initially submitted 
revisions to its SIP meant to address the 2008 PM2.5 NSR 
Rule, the Milwaukee-Racine area was designated as nonattainment for the 
2006 PM2.5 24-hour NAAQS, and WDNR submitted rules 
pertaining to NNSR in addition to PSD. Thus, EPA's disapproval of this 
submission created an obligation for WDNR to address the deficiencies 
identified in both the PSD and NNSR programs. On April 22, 2014, EPA 
finalized approval of Wisconsin's request to redesignate the Milwaukee-
Racine PM2.5 area to attainment for the 2006 
PM2.5 24-hour NAAQS. As a result there are no areas 
designated as nonattainment for PM2.5 located in Wisconsin. 
Since there are no areas designated as nonattainment for 
PM2.5 in Wisconsin, Wisconsin is no longer obligated to 
submit a NNSR plan for PM2.5 and there is no longer a FIP 
obligation for nonattainment NSR. Should an area be designated as 
nonattainment for PM2.5, Wisconsin will be required to 
revise its rules to include a plan to address PM2.5 in NNSR.
    Wisconsin's requested revisions are consistent with the applicable 
requirements found in Federal regulations; therefore EPA is proposing 
to approve the requested revisions.

V. What action is EPA taking?

    EPA is proposing to approve the revisions to Wisconsin rules NR 
400, and NR 405 submitted by the State on March 12, 2014, and April 15, 
2014, for approval into the SIP. The revisions submitted, described in 
section III, above, are consistent with Federal regulations governing 
state permitting programs. See section IV, above. EPA is also 
soliciting comment on this proposed approval. If EPA finalizes this 
proposed approval of WDNR's requested revisions, the FIP clocks started 
by EPA's October 29, 2012, narrow

[[Page 36692]]

disapproval and July 25, 2013, disapproval will stop.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Order 
12866 (58 FR 51735, October 4, 1993);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, this rule does not have tribal implications as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000), 
because the SIP is not approved to apply in Indian country located in 
the state, and EPA notes that it will not impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Particulate 
matter, Reporting and recordkeeping requirements, Sulfur oxides.

    Dated: June 17, 2014.
Susan Hedman,
Regional Administrator, Region 5.
[FR Doc. 2014-15284 Filed 6-27-14; 8:45 am]
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