Document ID: EPA-R09-OAR-2017-0481-0001
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Arizona; Approval and Conditional Approval of State Implementation Plan Revisions; Maricopa County Air Quality Department; Stationary Source Permits
Posted Date: 2018-06-11T04:00Z

[Federal Register Volume 83, Number 112 (Monday, June 11, 2018)]
[Proposed Rules]
[Pages 26912-26917]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12390]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2017-0481; FRL-9978-82--Region 9]

Air Quality State Implementation Plans: Arizona; Approval and 
Conditional Approval of State Implementation Plan Revisions; Maricopa 
County Air Quality Department; Stationary Source Permits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing action 
on revisions to the Maricopa County Air Quality Department (MCAQD) 
portion of the state implementation plan (SIP) for the State of 
Arizona. We are proposing full approval of three rules and conditional 
approval of three rules submitted by the MCAQD. The revisions update 
the MCAQD's New Source Review (NSR) permitting program for new and 
modified sources of air pollution. We are taking comments on this 
proposed rule and plan to follow with a final action.

DATES: Any comments must arrive by July 11, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2017-0481 at http://www.regulations.gov, or via email to 
[email protected]. 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: Shaheerah Kelly, EPA Region IX, (415) 
947-4156, [email protected].

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

Table of Contents

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

Definitions

    For the purpose of this document, we are giving meaning to certain 
words or initials as follows:

    (i) The word or initials ADEQ mean or refer to the Arizona 
Department of Environmental Quality.
    (ii) The word or initials CAA or Act mean or refer to the Clean 
Air Act, unless the context indicates otherwise.
    (iii) The initials CFR mean or refer to Code of Federal 
Regulations.
    (iv) The initials or words EPA, we, us or our mean or refer to 
the United States Environmental Protection Agency.
    (v) The word or initials MCAQD or Department mean or refer to 
the Maricopa County Air Quality Department, the agency with 
jurisdiction over stationary sources within Maricopa County, 
Arizona.
    (vi) The initials NAAQS mean or refer to the National Ambient 
Air Quality Standards.
    (vii) The initials NSR mean or refer to New Source Review.
    (viii) The initials NNSR mean or refer to nonattainment New 
Source Review.
    (ix) The initials PSD mean or refer to Prevention of Significant 
Deterioration.
    (x) The initials SIP mean or refer to State Implementation Plan.
    (xi) The word State means or refers to the State of Arizona.
    (xii) The word TSD means or refers to the Technical Support 
Document.

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the submitted rules addressed by this action with the 
dates that the rules were adopted by the MCAQD and submitted to EPA by 
the ADEQ, which is the governor's designee for Arizona SIP submittals. 
These rules constitute the MCAQD's air quality preconstruction NSR 
permit program.
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    \1\ Rule 210 also contains requirements to address the CAA title 
V requirements for operating permit programs, but we are not 
evaluating the rule for title V purposes at this time. We will 
evaluate Rule 210 for compliance with the requirements of title V of 
the Act and the EPA's implementing regulations in 40 CFR part 70 
following receipt of an official part 70 program submittal from 
Maricopa County containing this rule.

                                         Table 1--MCAQD Submitted Rules
----------------------------------------------------------------------------------------------------------------
                                                                                    Adoption or
           Regulation & Rule No.                          Rule title              amendment date     Submitted
----------------------------------------------------------------------------------------------------------------
Regulation I, Rule 100.....................  General Provisions; General                2/3/2016       5/18/2016
                                              Provisions and Definitions.
Regulation II, Rule 200....................  Permits and Fees; Permit                   2/3/2016       5/18/2016
                                              Requirements.
Regulation II, Rule 210 \1\................  Permits and Fees; Title V Permit           2/3/2016       5/18/2016
                                              Provisions.
Regulation II, Rule 220....................  Permits and Fees; Non-Title V              2/3/2016       5/18/2016
                                              Permit Provisions.
Regulation II, Rule 230....................  Permits and Fees; General Permits..        2/3/2016       5/18/2016
Regulation II, Rule 240....................  Permits and Fees; Federal Major New        2/3/2016       5/18/2016
                                              Source Review.
Regulation II, Rule 241....................  Permits and Fees; Minor New Source         9/7/2016      11/25/2016
                                              Review.
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[[Page 26913]]

    On October 31, 2016, the EPA determined that the submittal for the 
MCAQD's Rules 100, 200, 210, 220, 230, and 240 met the completeness 
criteria in 40 CFR part 51 Appendix V. Additionally, on January 17, 
2017, the EPA determined that the submittal for the MCAQD Rule 241 met 
the completeness criteria in 40 CFR part 51 Appendix V.\2\ These NSR 
rule submittals, which we refer to collectively herein as ``MCAQD's NSR 
submittal'' or ``the submittal,'' represent a comprehensive revision to 
the MCAQD's preconstruction review and permitting program and are 
intended to satisfy the requirements under part D (NNSR) of title I of 
the Act as well as the general preconstruction review requirements 
under section 110(a)(2)(C) of the Act.
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    \2\ Copies of the completeness letters are in the docket for 
today's rulemaking.
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    In a letter dated April 6, 2018, the ADEQ requested that the rules 
or rule sections listed in Table 2 be withdrawn from the May 18, 2016 
SIP submittal. Therefore, these rules or rule sections are not part of 
the submitted rules that the EPA is evaluating and proposing action on 
in this notice.

                                 Table 2--Withdrawn MCAQD Rules or Rule Sections
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                                                                                    Adoption or
      Regulation, rule, & section No.                       Title                 amendment date     Submitted
----------------------------------------------------------------------------------------------------------------
Regulation I, Rule 100, Section 200.24.....  Definition of ``Begin Actual               2/3/2016       5/18/2016
                                              Construction''.
Regulation I, Rule 100, Section 200.73.....  Definition of ``Modification''.....        2/3/2016       5/18/2016
Regulation I, Rule 100, Section 200.104(c).  Definition of ``Regulated Air              2/3/2016       5/18/2016
                                              Pollutant''.
Regulation II, Rule 230....................  Permits and Fees; General Permits..        2/3/2016       5/18/2016
Regulation II, Rule 240, Section 305.......  Permit Requirements for New Major          2/3/2016       5/18/2016
                                              Sources or Major Modifications
                                              located in Attainment or
                                              Unclassifiable Areas.
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B. Are there other versions of these rules?

    The existing SIP-approved NSR program for new or modified 
stationary sources in Maricopa County consists of the rules identified 
in Table 3. Collectively, these rules establish the NSR permit 
requirements for stationary sources under the MCAQD's jurisdiction.
    The rules listed in Table 1 will replace the existing SIP-approved 
NSR program rules listed in Table 3, in their entirety, except for 
certain definitions the EPA has identified that must be retained in the 
SIP.\3\ The MCAQD made significant revisions to its NSR program, 
including, for example, switching from separate preconstruction and 
operating permit programs to a ``unitary'' permit program.\4\ The EPA's 
action on this SIP submittal will update the MCAQD portion of the 
Arizona SIP.
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    \3\ See Section 4.8.1.5 in our TSD in the docket for this action 
for a list of these definitions.
    \4\ The MCAQD combined its ``installation'' (referred to in EPA 
regulations as ``construction'') and ``operating'' permit programs 
to form a ``unitary'' permit program that authorizes both 
construction and operation of a stationary source in a single permit 
document. A single permit application is submitted by a stationary 
source to satisfy both the NSR and Title V Operating permit program 
requirements. Also, the public notification and review process for 
the combined permit action is designed to satisfy both the NSR and 
operating permit program requirements.
    \5\ The excluded definitions were removed from the SIP-approved 
version of Rule 2 on June 18, 1982 (47 FR 26382).
    \6\ The NSR SIP Submittal identifies Rule 20 in the list of SIP 
rules intended to be replaced by the submitted revised rules. While 
Rule 20 is not listed in the current approved SIP (see 40 CFR 
52.120), it is not entirely clear that it was ever removed from the 
SIP. Therefore, for completeness we are listing the rule.
    \7\ This approval action was approved by the EPA on August 10, 
1988 (53 FR 30224), then vacated and restored on January 29, 1991 
(56 FR 3219).
    \8\ Id.
    \9\ While Rule 21, Section F is not listed in the current 
approved SIP (see 40 CFR 52.120), it is not entirely clear that it 
was ever removed from the SIP. Therefore, for completeness we are 
listing the rule.

                                   Table 3--MCAQD's Current Sip-Approved Rules
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                                                                       SIP approval
   Regulation, rule, & section No.               Rule title                date        Federal Register citation
----------------------------------------------------------------------------------------------------------------
Regulation I, Rule 1.................  General Provisions; Emissions       7/27/1972  37 FR 15080
                                        Regulated: Policy, Legal
                                        Authority.
Regulation I, Rule 2, No. 11           General Provisions;                 6/18/1982  47 FR 26382
 ``Alteration or Modification'' and     Definitions.
 No. 33 ``Existing Source''.
Regulation I, Rule 2 (excluding Nos.   General Provisions;                 4/12/1982  47 FR 15579
 18, 49, 50, 52, 54 and 57) \5\.        Definitions.
Regulation I, Rule 3.................  General Provisions; Air             4/12/1982  47 FR 15579
                                        Pollution Prohibited.
Regulation I, Rule 100, Section 108..  General Provisions; Hearing         8/10/2015  80 FR 47859
                                        Board.
Regulation I, Rule 100, Section 500..  General Provisions;                 11/5/2012  77 FR 66405
                                        Monitoring and Records.
Regulation II, Rule 20 \6\...........  Permits and Fees; Permits           7/27/1972  37 FR 15080
                                        Required.
Regulation II, Rule 21.0, (paragraphs  Permits and Fees; Procedures        1/29/1991  56 FR 3219
 A-C; subparagraphs D.1.a-d; and        for Obtaining an
 paragraph E only) \7\.                 Installation Permit.
Regulation II, Rule 21.0,              Permits and Fees; Procedures        1/29/1991  56 FR 3219
 (subparagraph D.1 and subparagraphs    for Obtaining an
 D.1.e, f and g only) \8\.              Installation Permit.
Regulation II, Rule 21, Section F \9\  Permits and Fees; Procedures        7/27/1972  37 FR 15080
                                        for Obtaining an
                                        Installation Permit.
Regulation II, Rule 21, Section G....  Permits and Fees; Procedures        4/12/1982  47 FR 15579
                                        for Obtaining an
                                        Installation Permit.
Regulation II, Rule 23...............  Permits and Fees; Permit            7/27/1972  37 FR 15080
                                        Classes.
Regulation II, Rule 25...............  Permits and Fees; Emissions         4/12/1982  47 FR 15579
                                        Test Methods and Procedures.

[[Page 26914]]

 
Regulation II, Rule 26...............  Permits and Fees; Air Quality       4/12/1982  47 FR 15579
                                        Models.
Regulation II, Rule 26...............  Permits and Fees; Portable          7/27/1972  37 FR 15080
                                        Equipment.
Regulation II, Rule 220..............  Permits and Fees; Permits to         1/6/1992  57 FR 354
                                        Operate.
Regulation IV, Rule 40...............  Production of Records:              4/12/1982  47 FR 15579
                                        Monitoring, Testing, and
                                        Sampling Facilities; Record
                                        Keeping and Reporting.
Regulation IV, Rule 43...............  Production of Records:              7/27/1972  37 FR 15080
                                        Monitoring, Testing, and
                                        Sampling Facilities; Right
                                        of Inspection.
Regulation VII, Rule 71..............  Ambient Air Quality                 4/12/1982  47 FR 15579
                                        Standards; Anti-degradation.
Regulation VIII, Rule 80.............  Validity and Operation;             7/27/1972  37 FR 15080
                                        Validity.
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C. What is the purpose of the submitted rule revisions?

    Section 110(a) of the CAA requires states to submit regulations 
that include a pre-construction permit program for new or modified 
stationary sources of pollutants, including a permit program as 
required by part D of title I of the CAA.
    The purpose of the MCAQD's NSR submittal, which includes Rules 100, 
200, 210, 220, 240, and 241, is to implement the county's 
preconstruction permit program for new and modified minor sources, and 
new and modified major stationary sources for areas designated 
nonattainment for at least one National Ambient Air Quality Standards 
(NAAQS).
    A portion of Maricopa County (Phoenix-Mesa, AZ) is currently 
designated as a Moderate nonattainment area for the 2008 ozone NAAQS 
and as a Marginal nonattainment area for the 2015 ozone NAAQS. 
Additionally, a different portion of the county (Phoenix Planning Area) 
is currently designated as a Serious nonattainment area for the 1987 
24-hour PM10 NAAQS. See 40 CFR 81.303.
    We present our evaluation under the CAA and the EPA's implementing 
regulations applicable to SIP submittals and NSR permit programs in 
general terms below. We provide a more detailed analysis in our TSD, 
which is available in the docket for this proposed action.

II. The EPA's Evaluation

A. How is the EPA evaluating the rules?

    The EPA has reviewed the MCAQD rules listed in Table 1 for 
compliance with the CAA's general requirements for SIPs in CAA section 
110(a)(2), and for the nonattainment NSR programs in part D of title I 
(sections 172 and 173). The EPA also evaluated the rules for compliance 
with the CAA requirements for SIP revisions in CAA sections 110(l) and 
193. In addition, the EPA evaluated the submitted rules for consistency 
with the regulatory provisions of 40 CFR part 51, subpart I (Review of 
New Sources and Modifications) (i.e., 40 CFR 51.160-51.165) and 40 CFR 
51.307.
    Among other things, section 110 of the Act requires that SIP rules 
be enforceable, and provides that the EPA may not approve a SIP 
revision if it would interfere with any applicable requirements 
concerning attainment and reasonable further progress (RFP) or any 
other requirement of the CAA. In addition, section 110(a)(2) and 
section 110(l) of the Act require that each SIP or revision to a SIP 
submitted by a state must be adopted after reasonable notice and public 
hearing.
    Section 110(a)(2)(C) of the Act requires each SIP to include a 
program to regulate the modification and construction of any stationary 
source within the areas covered by the SIP as necessary to assure 
attainment and maintenance of the NAAQS. The EPA's regulations at 40 
CFR 51.160-51.164 provide general programmatic requirements to 
implement this statutory mandate commonly referred to as the 
``general'' or ``minor'' NSR program. These NSR program regulations 
impose requirements for approval of state and local programs that are 
more general in nature as compared to the specific statutory and 
regulatory requirements for NSR permitting programs under part D of 
title I of the Act.
    Part D of title I of the Act contains the general requirements for 
areas designated nonattainment for a NAAQS (section 172), including 
preconstruction permit requirements for new major sources and major 
modifications proposing to construct in nonattainment areas (section 
173). 40 CFR 51.165 sets forth the EPA's regulatory requirements for 
SIP-approval of a nonattainment NSR permit program.
    The protection of visibility requirements that apply to NSR 
programs are contained in 40 CFR 51.307. This provision requires that 
certain actions be taken in consultation with the local Federal Land 
Manager if a new major source or major modification may have an impact 
on visibility in any mandatory Federal Class I Area.
    Section 110(l) of the Act prohibits the EPA from approving any SIP 
revisions that would interfere with any applicable requirement 
concerning attainment and RFP or any other applicable requirement of 
the CAA. Section 193 of the Act, which only applies in nonattainment 
areas, prohibits the modification of a SIP-approved control requirement 
in effect before November 15, 1990, in any manner unless the 
modification insures equivalent or greater emission reductions of such 
air pollutant.
    Our TSD, which can be found in the docket for this rule, contains a 
more detailed discussion of the approval criteria.

B. Do the rules meet the evaluation criteria?

    The EPA has reviewed the submitted rules in accordance with the 
rule evaluation criteria described above. With respect to procedural 
requirements, CAA sections 110(a)(2) and 110(l) require that revisions 
to a SIP be adopted by the state after reasonable notice and public 
hearing. Based on our review of the public process documentation 
included in the May 18, 2016 and November 25, 2016 SIP submittals, we 
find that the MCAQD has provided sufficient evidence of public notice, 
and an opportunity for comment and a public hearing prior to adoption 
and submittal of these rules to the EPA.
    With respect to substantive requirements, we have reviewed the 
submitted rules in accordance with the evaluation criteria discussed 
above. We are proposing to fully approve Rules 210, 240 and 241 as part 
of the MCAQD's general and major source NSR permitting program because 
we have determined that these rules satisfy the substantive statutory 
and regulatory requirements for NSR permit programs as contained in 
part D of title I of the

[[Page 26915]]

Act (sections 172, 173 and 182(a)), the part D requirements of CAA 
section 110(a)(2)(C), 40 CFR 51.160-51.165, and 40 CFR 51.307.
    In addition, we are proposing a conditional approval of Rules 100, 
200, and 220 because we have determined that while they mostly satisfy 
the statutory and regulatory requirements of CAA section 110(a)(2)(C) 
and part D of title I of the Act, the rules also contain eight 
deficiencies that prevent full approval. Below we describe the eight 
identified deficiencies. Our TSD contains a more detailed evaluation 
and recommendations for program improvements.
1. Definitions of ``PM2.5'' and ``PM10'' (Rule 200, Sections 201 and 
315)
    The EPA finds the definitions of ``PM2.5'' and 
``PM10'' in Rule 100, Sections 200.91 and 200.92, deficient 
because they do not provide that gaseous emissions, which form 
particulates, are included in the respective definitions. The MCAQD may 
correct this deficiency by adding language to clarify that gaseous 
emissions are included in these definitions.
2. Good Engineering Practice Stack Height Provisions (Rule 200, 
Sections 201 and 315)
    An NSR program is required to contain provisions to satisfy the 
requirements of 40 CFR 51.164, pertaining to stack height procedures. 
The NSR program must contain provisions ensuring that a source with a 
stack height that exceeds good engineering practice (GEP), or that uses 
any other dispersion technique, does not affect the amount of emissions 
control required. 40 CFR 51.164 also includes specific requirements 
that must be met before a permit may be issued for any stack that 
exceeds GEP and a clarifying statement that the regulation does not 
restrict the actual stack height of any source.
    Rule 200, Section 201 defines the term GEP Stack Height as ``stack 
height meeting the requirements described in Rule 240 (Federal Major 
NSR) of these rules.'' (Emphasis added) This definition is inconsistent 
with the definition for this term provided in 40 CFR 51.100(ii), which 
provides a numerical value, or formulas for calculating a numerical 
value, relevant to stack height. Rule 240, Section 306 does not contain 
any ``requirements for stack height,'' but instead provides criteria 
for determining if a stack height exceeds GEP, and a prohibition on 
stack height exceeding GEP from affecting the degree of emission 
limitation required by any source for control of any air pollutants. 
Because Rule 240, Section 306 does not provide any specific 
requirements for stack height, this definition lacks clarity and 
practical enforceability. Therefore, the EPA finds this definition 
deficient. The MCAQD may correct this deficiency by removing this 
definition or revising it in Rule 200 to read ``as defined in 40 CFR 
51.100(ii),'' which will ensure the definition of GEP Stack Height is 
consistent with the EPA definition.
    Rule 200, Section 315 states that ``the degree of emission 
limitation required of any source of any pollutant shall not be 
affected by so much of any source's stack height that exceeds good 
engineering practice or by any other dispersion technique as determined 
by the procedures of 40 CFR 51.118 and the EPA regulations cross-
referenced therein.'' (Emphasis added) While this language satisfies 
the first sentence of 40 CFR 51.164, it does not include provisions (1) 
excluding certain stacks (as provided in 40 CFR 51.118(b)); (2) 
allowing stacks to exceed GEP in specified circumstances; or (3) 
clarifying that these provisions do not limit the stack height of any 
source. In addition, despite the language of Rule 200, Section 315, 40 
CFR 51.118 does not include any procedures for determining if the 
degree of emission limitation is or is not affected by a stack height 
that exceeds GEP or by any other dispersion technique. Therefore, the 
EPA finds Rule 200, Section 315 to be deficient. The MCAQD may correct 
this deficiency by moving or adding the provisions of Rule 240, Section 
306 to Rule 200, Section 315.
3. Exemption for Agricultural Equipment Used in Normal Farm Operations 
(Rule 200, Section 305.1.c)
    While the EPA agrees that, in general, certain types of equipment 
may be exempted from the minor NSR program, the MCAQD must provide a 
basis under 40 CFR 51.160(e) to demonstrate that regulation of the 
equipment exempted in Rule 200, Section 305.1.c is not needed for the 
MCAQD's program to meet federal NSR requirements for attainment and 
maintenance of the NAAQS or review for compliance with the control 
strategy.
    Such demonstration must address: (1) Identification of the types of 
equipment that the MCAQD considers to be ``agricultural equipment used 
in normal farm operations'' and whether this type of equipment could 
potentially be expected to occur at a stationary source subject to 
title V of the CAA, 40 CFR parts 60, 61, and 63, or part C or D of 
title I of the CAA, and, if so, whether such equipment is subject to 
NSR review at such sources; and (2) the MCAQD's basis for determining 
that ``agricultural equipment used in normal farm operations'' does not 
need to be regulated as part of the MCAQD's minor NSR program under 40 
CFR 51.160(e).
4. Notification and Implementation Provisions for Certain Changes That 
Do Not Require a Non-Title V Revision (Rule 220, Section 404.3)
    Rule 200, Section 404.3 provides criteria for replacing or changing 
certain equipment if the source provides written notification to the 
Control Officer within 7 or 30 days in advance of the change. The EPA 
is concerned that two of the listed provisions (subparagraphs e. and 
f.) allow changes with potentially significant emission increases and 
should not be listed as changes that can be made after providing only a 
notification to the MCAQD. Subparagraph f. allows changes associated 
with an emission increase greater than 10 percent of the major source 
threshold (greater than 10 tpy for most criteria pollutants and 25 tpy 
for some other pollutants), if the increase does not trigger a new 
applicable requirement. These allowable emission increase thresholds 
are greater than some of the public notice thresholds provided in Rule 
100, Section 200.98. Because the rule contains conflicting 
requirements--a notification and implementation provision allowing 
changes without a permit revision versus a public notice requirement 
for changes with emission increases equal or greater than these 
amounts, the EPA finds the provisions contained in subparagraph f. to 
be deficient. Likewise, the provision in subparagraph e. is for 
reconstructed sources, which are defined, in part, as sources where the 
fixed capital cost of the new components exceeds 50 percent of the 
fixed capital cost that would be required to construct a comparable new 
facility. This type of change is not likely to result in an 
insignificant revision; therefore, the EPA finds that this provision is 
also deficient. These deficiencies may be addressed by adding language 
stating that the provisions of Section 404.3 only apply to changes that 
do not require a permit revision pursuant to Section 403.2. (See 
language contained in Rule 200, Section 404.3, subparagraph b.)
5. Expiration of NSR Terms and Conditions
    The MCAQD's permit programs now rely on a single unitary permit to 
satisfy both NSR and title V program requirements. Rule 210, Section 
402 and

[[Page 26916]]

Rule 220, Section 402, both specify that a Title V and Non-Title V 
permit, respectively, shall remain in effect for no more than 5 years.
    The MCAQD's permit program must ensure that all NSR terms and 
conditions contained in either type of permit do not expire even if the 
Title V or Non-Title V permit expires. Rule 200, Section 403.2 provides 
that if a timely and complete application for a permit renewal is 
submitted, then the permit will not expire until the renewal permit has 
been issued or denied. However, Rule 200, Section 403.2 does not 
specifically ensure the continuity of the NSR terms and conditions when 
a Title V or Non-Title V permit expires. The lack of such a provision 
is a NSR program deficiency. The MCAQD may correct this deficiency by 
adding a provision similar to paragraph B of ADEQ's R18-2-303.
6. Inappropriate Rule References of Appendix G in Rules 100 and 200
    Appendix G (Incorporated Materials) is referenced throughout the 
submitted rules as containing pertinent requirements for provisions 
contained in the MCAQD's rules, but it is not included in the existing 
SIP, nor has it been included in the SIP submittal. For this reason, 
the following sections of the submitted rules, which reference Appendix 
G for the applicability of specified provisions, are deficient.

 Rule 100, Section 200.14 (Definition of ``AP-42'')
 Rule 100, Section 200.80 (Definition of ``Non-Precursor 
Organic Compound'')
 Rule 100, Section 200.103 (Definition of ``Reference Method'')
 Rule 100, Section 503 (Emission Statements Required as Stated 
in the Act)
 Rule 200, Section 315 (Stack Height Provisions)

    The MCAQD may correct these deficiencies by removing the references 
to Appendix G and, where appropriate, citing to the appropriate CFR 
provision without incorporating the provision by reference into a 
specific MCAQD rule.
7. Inappropriate Rule References of Arizona Testing Manual in Rules 100 
and 200
    Rules 100 and 200 both include references to the Arizona Testing 
Manual (ATM). Rule 100, Section 200.17 defines the term ``ATM'' as 
Sections 1 and 7 of the ATM for Air Pollutant Emissions, amended as of 
March 1992 (and no future editions). However, only Section 1 of the ATM 
is approved in the Arizona SIP. This provision is deficient for two 
separate reasons. First, Rule 100 cross-references and relies on 
provisions that are not SIP approved. Second, the ATM is significantly 
out of date, and therefore it is not appropriate to be relied upon as 
the sole basis for testing procedures as specified in Section 408 of 
Rule 200. The MCAQD may correct this deficiency by revising Section 408 
to specify current EPA test methods or alternative test methods 
approved by the Director and the EPA in writing.
8. Definitions To Be Retained in the SIP
    The MCAQD's SIP submittal states that the Department is seeking to 
delete certain definitions from the approved SIP by replacing the rules 
containing these definitions with newly submitted rules that no longer 
contain these definitions (in effect, these definitions would be 
repealed from the SIP). However, these definitions are used in other 
SIP rules and therefore cannot be repealed from the SIP without further 
justification. Therefore, these definitions will be retained in the 
SIP. For a list of these definitions see Section 4.8.1.5 of our TSD, 
which is available in the docket for this proposed action.

III. Proposed Action and Public Comment

    If a portion of a plan revision meets all the applicable CAA 
requirements, CAA section 110(k)(3) authorizes the EPA to approve the 
plan revision in part. As such we are proposing full approval of MCAQD 
Rules 210, 240, and 241. In addition, CAA section 110(k)(4) authorizes 
the EPA to conditionally approve a plan revision based on a commitment 
by the state to adopt specific enforceable measures by a date certain 
but not later than one year after the date of the plan approval. In 
letters dated April 2, 2018 and April 6, 2018, the MCAQD and the ADEQ 
committed to adopt and submit specific enforceable measures to address 
the identified deficiencies in Rules 100, 200, and 220 within one year 
after the date of final approval.\10\ Accordingly, pursuant to section 
110(k)(4) of the Act, the EPA is proposing a conditional approval of 
submitted Rules 100, 200, and 220. We are proposing to conditionally 
approve these rules based on our determination that, separate from the 
deficiencies listed in Section II.B of this notice, the rules satisfy 
the substantive statutory and regulatory requirements for a general NSR 
permit program as contained in 40 CFR 51.160-51.164, as well as a 
nonattainment NSR permit program as set forth in the applicable 
provisions of part D of title I of the Act (sections 172, 173 and 
182(a)), 40 CFR 51.165, and 40 CFR 51.307. Moreover, we conclude that 
if the MCAQD and the ADEQ submit the changes listed in their commitment 
letters, the identified deficiencies will be cured.
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    \10\ See Section 9.2 of the TSD for additional information about 
how the MCAQD will correct the identified deficiencies. The April 2, 
2018 and April 6, 2018 commitment letters from the MCAQD and the 
ADEQ are contained in the docket for today's rulemaking.
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    In support of this proposed action, we have concluded that our 
conditional approval of the submitted rules would comply with section 
110(l) of the Act because the amended rules, as a whole, would not 
interfere with continued attainment of the NAAQS in Maricopa County. 
The intended effect of our proposed conditional approval action is to 
update the applicable SIP with current MCAQD rules and provide the 
MCAQD the opportunity to correct the identified deficiencies, as 
discussed in their commitment letter dated April 2, 2018. If we 
finalize this action as proposed, our action would be codified through 
revisions to 40 CFR 52.120 (Identification of plan) and 40 CFR 52.119 
(Part D conditional approval).
    If the ADEQ and MCAQD meet their commitment to submit the required 
revisions and/or demonstrations within 12 months of the EPA's final 
action on this SIP submittal, and the EPA approves the submission, then 
the deficiencies listed above will be cured. However, if the MCAQD or 
the ADEQ fails to submit these revisions and/or demonstrations within 
the required timeframe, the conditional approval will become a 
disapproval and the EPA will issue a finding of disapproval. The EPA is 
not required to propose the finding of disapproval. Further, a finding 
of disapproval would start an 18-month clock to apply sanctions under 
CAA section 179(b) and a two-year clock for a federal implementation 
plan under CAA section 110(c)(1).
    We will accept comments from the public on the proposed approval 
and conditional approval of the MCAQD rules listed in Table 1 of this 
notice for the next 30 days.

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 MCAQD rules listed in Table 1 of this notice, except for 
the rules or rule sections listed in Table 2 of this notice. The EPA 
has made, and will continue to make, these documents generally 
available electronically through

[[Page 26917]]

www.regulations.gov and at the EPA Region IX Office (see the FOR 
FURTHER INFORMATION CONTACT section of this preamble for more 
information).

V. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

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

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

B. Paperwork Reduction Act (PRA)

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

C. Regulatory Flexibility Act (RFA)

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

D. Unfunded Mandates Reform Act (UMRA)

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

E. Executive Order 13132: Federalism

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

F. Executive Order 13175: Coordination With Indian Tribal Governments

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

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

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not impose additional 
requirements beyond those imposed by state law.

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

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

I. National Technology Transfer and Advancement Act (NTTAA)

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

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Population

    The EPA lacks the discretionary authority to address environmental 
justice in this rulemaking.

List of Subjects in 40 CFR Part 52

    Air pollution control, Environmental protection, Incorporation by 
reference, Intergovernmental relations, New Source Review, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Volatile 
organic compounds.

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

    Dated: May 18, 2018.
Deborah Jordan,
Acting Regional Administrator, Region IX.
[FR Doc. 2018-12390 Filed 6-8-18; 8:45 am]
 BILLING CODE 6560-50-P