Document ID: EPA-R08-OAR-2014-0713-0001
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Montana; Prevention of Significant Deterioration
Posted Date: 2014-09-29T04:00Z

[Federal Register Volume 79, Number 188 (Monday, September 29, 2014)]
[Proposed Rules]
[Pages 58309-58312]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-23108]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2014-0713; FRL-9917-20-Region-8]

Approval and Promulgation of Air Quality Implementation Plans; 
Montana; Revisions to Administrative Rules of Montana--Prevention of 
Significant Deterioration

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve State Implementation Plan (SIP) revisions submitted by the 
State of Montana on June 4, 2013. This SIP revision revises the 
Administrative Rules of Montana that pertain to the issuance of Montana 
air quality permits. The June 4, 2013 revisions contain amended and 
renumbered rules. In this proposed rulemaking, we are taking action on 
portions of the June 4, 2013 submittal. This action is being taken 
under section 110 of the Clean Air Act (CAA).

DATES: Comments must be received on or before October 29, 2014.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R08-
OAR-2014-0713, by one of the following methods:
     www.regulations.gov. Follow the on-line instructions for 
submitting comments.
     Email: leone.kevin@epa.gov.
     Fax: (303) 312-6064 (please alert the individual listed in 
the FOR FURTHER INFORMATION CONTACT if you are faxing comments).
     Mail: Carl Daly, Director, Air Program, Environmental 
Protection Agency (EPA), Region 8, Mailcode 8P-AR, 1595 Wynkoop Street, 
Denver, Colorado 80202-1129.
     Hand Delivery: Carl Daly, Director, Air Program, 
Environmental Protection Agency (EPA), Region 8, Mailcode 8P-AR, 1595 
Wynkoop Street, Denver, Colorado 80202-1129. Such deliveries are only 
accepted Monday through Friday, 8:00 a.m. to 4:30 p.m., excluding 
federal holidays. Special arrangements should be made for deliveries of 
boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R08-OAR-
2014-0713. 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 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 
information about EPA's public docket visit the EPA Docket Center 
homepage at http://www.epa.gov/epahome/dockets.htm. For additional 
instructions on

[[Page 58310]]

submitting comments, go to section I. General Information 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 Air Program, 
Environmental Protection Agency (EPA), Region 8, 1595 Wynkoop Street, 
Denver, Colorado 80202-1129. EPA requests that if at all possible, you 
contact the individual listed in the FOR FURTHER INFORMATION CONTACT 
section to view the hard copy of the docket. You may view the hard copy 
of the docket Monday through Friday, 8:00 a.m. to 4:00 p.m., excluding 
federal holidays.

FOR FURTHER INFORMATION CONTACT: Kevin Leone, Air Program, Mailcode 8P-
AR, Environmental Protection Agency, Region 8, 1595 Wynkoop Street, 
Denver, Colorado 80202-1129, (303) 312-6227, or leone.kevin@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. General Information
II. What is being addressed in this document?
III. What is the state process to submit these materials to EPA?
IV. What are the changes that EPA is proposing to approve?
V. What action is EPA taking today?
VI. Statutory and Executive Orders Review

Definitions

    For the purpose of 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 ARM mean or refer to the Administrative Rules of 
Montana.
    (iii) The words EPA, we, us or our mean or refer to the United 
States Environmental Protection Agency.
    (iv) The initials MDEQ mean or refer to the Montana Department of 
Environmental Quality.
    (v) The initials NOX mean or refer to nitrogen oxides.
    (vi) The initials NSR mean or refer to New Source Review.
    (vii) The initials PSD mean or refer to Prevention of Significant 
Deterioration.
    (viii) The initials SIP mean or refer to State Implementation Plan.
    (ix) The initials SO2 mean or refer to sulfur dioxide.
    (x) The words State or Montana mean the State of Montana, unless 
the context indicates otherwise.

I. General Information

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

    1. Submitting CBI. Do not submit this information to EPA through 
www.regulations.gov or email. Clearly mark the part or all of the 
information that you claim to be CBI. For CBI information in a disk or 
CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as 
CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
    a. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    b. Follow directions--The agency may ask you to respond to specific 
questions or organize comments by referencing a Code of Federal 
Regulations (CFR) part or section number.
    c. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    d. Describe any assumptions and provide any technical information 
and/or data that you used.
    e. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    f. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    g. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    h. Make sure to submit your comments by the comment period deadline 
identified.

II. What is being addressed in this document?

    EPA is proposing to approve (with one exception) the revisions to 
Title 17, Chapter 8, subchapter 8 of the Administrative Rules of 
Montana (ARM) submitted by the State on June 4, 2013, that relate to 
the State's prevention of significant deterioration (PSD) program. The 
revisions to the State PSD SIP were adopted by the Montana Department 
of Environmental Quality (MDEQ) on September 27, 2012, and became 
effective October 12, 2012.
    Specifically, the submittal contains revisions to ARM 17.8.801 
(Definitions) and 17.8.818 (Review of Major Source and Major 
Modifications--Source Applicability and Exemptions) to include nitrogen 
oxides (NOX) as an ozone precursor pollutant for reviewing 
major stationary sources of air pollutants and to amend portions of the 
SIP for consistency of language when referring to sulfur dioxide 
(SO2) and NOX. The submittal also corrected an 
error in an August 15, 2012 submittal regarding the treatment of fine 
particulate matter (PM2.5). We have not acted on the August 
15, 2012 submittal; EPA will act on the correction in the June 4, 2013 
submittal in tandem with our future action on the August 15, 2012 
submittal.
    On November 29, 2005, EPA published the ``Final Rule to Implement 
the 8-Hour Ozone National Ambient Air Quality Standards--Phase 2'' in 
70 FR 71612 (``Phase 2 Ozone Implementation Rule''). This regulation 
required revisions to state programs for major source permitting. One 
of the requirements in EPA regulations was to address ozone formation 
by regulating precursor pollutants (see 40 CFR 51.166(b)(49)(i) and 
52.21(b)(50)(i)). ``Precursor pollutants'' are pollutants that combine 
to form another pollutant; NOX reacts with volatile organic 
compounds to form ozone. In the Phase 2 Ozone Implementation Rule, EPA 
identified NOX as an ozone precursor pollutant in attainment 
and unclassifiable areas. Accordingly, the Phase 2 Ozone Implementation 
Rule amended the definition of ``major stationary source,'' ``major 
modification,'' ``significant,'' and ``regulated NSR pollutant'' to 
include NOX as an ozone precursor \1\.
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    \1\ See 40 CFR 51.166(b)(1)(ii), (b)(2)(ii), (b)(23), and 
(b)(49). See also 40 CFR 52.21(b)(1)(ii), (b)(2)(ii), (b)(23), and 
(b)(50). EPA also amended the footnote to 40 CFR 51.166(i)(5)(i)(e) 
(40 CFR 51.166(i)(5)(i)(f) in the current CFR) and 40 CFR 
52.21(i)(5)(i) to require sources with a net increase of 100 tons 
per year or more of NOX to perform an ambient impact 
analysis.
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    In a November 29, 2005, final rule (Approval and Disapproval and 
Promulgation of State Implementation Plan Revisions; Infrastructure 
Requirements for the 1997 8-Hour Ozone National Ambient Air Quality 
Standards; Montana), EPA disapproved a Montana SIP revision because we 
found Montana's PSD rules for ozone inadequate because the rules did 
not

[[Page 58311]]

address NOX as an ozone precursor pollutant as required by 
the Phase 2 Ozone Implementation Rule. 76 FR 28934. This disapproval 
started a FIP clock, and as we are now proposing to approve Montana's 
June 4, 2013, submittal, this would cure the deficiency identified in 
our prior disapproval and extinguish our FIP obligations because the 
proposed amendments in this notice would address EPA's concerns and 
make Montana's rules for PSD permitting adequate to implement the 1997 
8-hour ozone NAAQS.

III. What is the state process to submit these materials to EPA?

    Section 110(k) of the CAA addresses EPA's actions on submissions of 
revisions to a SIP. The CAA requires states to observe certain 
procedural requirements in developing SIP revisions for submittal to 
EPA. Section 110(a)(2) of the CAA requires that each SIP revision be 
adopted after reasonable notice and public hearing. This must occur 
prior to the revision being submitted by a state to EPA. The MDEQ held 
a public hearing on July 12, 2012 to propose revisions consistent with 
the Phase 2 Ozone Implementation Rule at 70 FR 71612 in its regulations 
at ARM 17.8. The Governor submitted these SIP revisions to EPA on June 
4, 2013.
    We have evaluated the Governor's submittal of the PSD SIP revisions 
and have determined that the State met the requirements for reasonable 
notice and public hearing under Section 110(a)(2) of the CAA.

IV. What are the changes that EPA is proposing to approve?

    EPA is proposing to approve revisions to the Montana SIP that would 
bring the State PSD program provisions into conformance with the 
requirements of the Phase 2 Ozone Implementation Rule.
    Generally, the proposed amendments to the Montana SIP would add 
NOX as a regulated ozone precursor pollutant for purposes of 
PSD. The MDEQ and applicants for permits to construct or modify major 
sources would be required to analyze the applicability of PSD 
requirements for ozone based on a source's NOX emissions. 
The following are descriptions of the proposed amendments:
    ARM 17.8.801(20)(a) would be amended by modifying the definition of 
``major modification,'' adding NOX as an ozone precursor 
pollutant when NOX emissions exceed a significance 
threshold. This revision is consistent with the federal definition of 
``major modification'' in 40 CFR 51.166(b)(2)(ii).
    ARM 17.8.801(22)(b) would be amended by modifying the definition of 
``major stationary source,'' adding NOX as an ozone 
precursor pollutant thereby triggering consideration of a source as 
``major'' for ozone when the source emits or has the potential to emit 
100 tons per year of NOX. This revision is consistent with 
the federal definition of ``major stationary source'' in 40 CFR 
51.166(b)(1)(ii).
    ARM 17.8.801(25) would be amended by adding a definition of the 
term ``nitrogen oxides or NOx,'' defining it as the sum of 
nitric oxide and nitrogen dioxide in the flu gas or emission point.
    ARM 17.8.801(27)(a) would be amended by modifying the definition of 
``significant.'' The SIP revision would add a significance level of 40 
tons per year of NOX as a precursor for ozone. We propose to 
find that these revisions are consistent with the federal definition of 
``significant'' in 40 CFR 51.166(b)(23)(i). The State also proposed to 
amend this definition by substituting the term ``nitrogen oxides'' for 
``nitrogen dioxide (NO2)'' as a precursor for 
PM2.5 formation. The use of ``nitrogen dioxide 
(NO2)'' was a mistake when the definition was adopted in 
September 2011. The State intended to use the term ``nitrogen oxides,'' 
which include the sum of nitric oxide and nitrogen dioxide in the flue 
gas or emission point because they are precursors to the formation of 
PM2.5, and the State is proposing to correct that mistake. 
The State is also proposing to delete the symbol ``SO2'' 
from the definition so that it is consistent with the Federal 
definition. EPA will act on the changes with respect to 
PM2.5 when we act on the August 15, 2012 submittal.
    ARM 17.8.818(7)(a)(vi) would be amended to add that a net increase 
of 100 tons per year of NOX, as an ozone precursor 
pollutant, triggers an ambient impact analysis. This revision is 
consistent with the footnote related to 40 CFR 51.166(i)(5)(i)(f) in 
the federal regulations.
    The State has not adopted a definition of ``regulated NSR 
pollutant,'' but instead continues to use the prior phrase ``pollutant 
subject to regulation under the CAA'' in its regulations to identify 
pollutants subject to PSD requirements. In support thereto, the State 
has provided a statement of basis indicating that it understands that 
``EPA found Montana's PSD rules for ozone inadequate because the rules 
do not address NOX as a precursor pollutant for ozone,'' and 
asserting that the ``proposed amendments in this notice would address 
EPA's concerns and make Montana's rules for PSD permits adequate to 
implementing the 1997 8-hour ozone NAAQS.'' The State further explains 
that:

    Generally, the proposed amendments to the rules would add 
NOX as a precursor pollutant that contributes to the 
formation of ozone. The department and applicants for permits to 
construct or modify major sources would be required to analyze the 
applicability of PSD requirements based on NOX as a 
precursor to ozone.

    Thus, we understand this to mean that the State interprets the 
phrase ``pollutant subject to regulation under the CAA'' to include 
NOX as a precursor to ozone, consistent with the application 
of Regulated NSR Pollutant in the federal regulations. Based on this 
explanation and Montana's proper revision of the other relevant PSD 
provisions described above, we therefore propose to find that Montana's 
regulations appropriately regulate NOX as an ozone precursor 
by requiring sources to analyze PSD applicability as to ozone based on 
the sources' NOX emissions.
    The requirements included in Montana's PSD program, as specified in 
ARM 17.8.801 and 17.8.818, are substantively the same as the federal 
provisions. As part of EPA's review of the Montana submittal, EPA 
performed a line-by-line review of the proposed revisions and has 
determined that they are consistent with the program requirements for 
the preparation, adoption and submittal of implementation plans for the 
Prevention of Significant Deterioration of Air Quality, as set forth at 
40 CFR 51.166.

V. What action is EPA taking today?

    EPA is proposing to approve the revisions to the ARM 17.8.801 and 
17.8.818 as outlined in Section IV of this rulemaking and as submitted 
to EPA by the State of Montana on June 4, 2013.

VI. Statutory and Executive Orders Review

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable federal regulations 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed 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

[[Page 58312]]

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 
in 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, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

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

    Dated: September 19, 2014.
Shaun L. McGrath,
Regional Administrator, Region 8.
[FR Doc. 2014-23108 Filed 9-26-14; 8:45 am]
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