Approval and Limited Approval and Limited Disapproval of California State Implementation Plan Revisions; Butte County Air Quality Management District; Stationary Source Permits, 55402-55405 [2016-19766]

Download as PDF 55402 Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules part 243 (FRB) and 12 CFR part 381 (FDIC); (3) Whether, and the extent to which, the set of conditions or the mechanism in which they are applied facilitates, on an industry-wide basis, contractual modifications to remove impediments to resolution and increase market certainty, transparency, and equitable treatment with respect to the default rights of non-defaulting parties to a covered QFC; (4) Whether, and the extent to which, the proposal applies to existing and future transactions; (5) Whether, and the extent to which, the proposal would apply to multiple forms of QFCs or multiple covered banks; (6) Whether the proposal would permit a party to a covered QFC that is within the scope of the proposal to adhere to the proposal with respect to only one or a subset of covered banks; (7) With respect to a supported party, the degree of assurance the proposal provides to the supported party that the material payment and delivery obligations of the covered affiliate credit enhancement and the covered direct QFC it supports will continue to be performed after the covered affiliate support provider enters a receivership, insolvency, liquidation, resolution, or similar proceeding; (8) The presence, nature, and extent of any provisions that require a covered affiliate support provider or transferee to meet conditions other than material payment or delivery obligations to its creditors; (9) The extent to which the supported party’s overall credit risk to the direct party may increase if the enhanced creditor protection conditions are not met and the likelihood that the supported party’s credit risk to the direct party would decrease or remain the same if the enhanced creditor protection conditions are met; and (10) Whether the proposal provides the counterparty with additional default rights or other rights. jstallworth on DSK7TPTVN1PROD with PROPOSALS § 47.7 Exclusion of Certain QFCs. (a) Exclusion of CCP-cleared QFCs. A covered bank is not required to conform a covered QFC to which a CCP is a party to the requirements of sections 47.4 and 47.5. (b) Exclusion of covered entity QFCs. A covered bank is not required to conform a covered QFC to the requirements of sections 47.4 and 47.5 to the extent that a covered entity is required to conform the covered QFC to similar requirements of the Federal Reserve Board if the QFC is either a direct QFC to which a covered entity is VerDate Sep<11>2014 14:53 Aug 18, 2016 Jkt 238001 a direct party or an affiliate credit enhancement to which a covered entity is the obligor. U.S. Federal banking agency, as applicable. * * * * * § 47.8 Foreign Bank Multi-branch Master Agreements. Dated: August 10, 2016. Thomas J. Curry, Comptroller of the Currency. (a) Treatment of foreign bank multibranch master agreements. With respect to a Federal branch or agency of a globally significant foreign banking organization, a foreign bank multibranch master agreement that is a covered QFC solely because the master agreement permits agreements or transactions that are QFCs to be entered into at one or more Federal branches or agencies of the globally significant foreign banking organization will be considered a covered QFC for purposes of this subpart only with respect to such agreements or transactions booked at such Federal branches or agencies or for which a payment or delivery may be made at such Federal branches or agencies. (b) Definition of foreign bank multibranch master agreements. A foreign bank multi-branch master agreement means a master agreement that permits a Federal branch or agency and another place of business of a foreign bank that is outside the United States to enter transactions under the agreement. PART 50—LIQUIDITY RISK MEASUREMENT STANDARDS 5. The authority citation for part 50 continues to read as follows: ■ Authority: 12 U.S.C. 1 et seq., 93a, 481, 1818, and 1462 et seq. 6. Section 50.3 is amended by revising the definition of ‘‘qualifying master netting agreement’’ by: ■ i. Removing the word ‘‘or’’ at the end of paragraph (2)(i); ■ ii. Removing the ’’;’’ at the end of paragraph (2)(ii) and adding in its place ‘‘; or’’; and ■ iii. Adding a new paragraph (2)(iii). The revisions are set forth below: ■ § 50.3 Definitions. * * * * * Qualifying master netting agreement means a written, legally enforceable agreement provided that: * * * * * (2) * * * * * * * * (iii) Where the right to accelerate, terminate, and close-out on a net basis all transactions under the agreement and to liquidate or set-off collateral promptly upon an event of default of the counterparty is limited only to the extent necessary to comply with the requirements of part 47 of this title 12 or any similar requirements of another PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 [FR Doc. 2016–19671 Filed 8–18–16; 8:45 am] BILLING CODE 4810–33–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R09–OAR–2016–0322; FRL–9950–95– Region 9] Approval and Limited Approval and Limited Disapproval of California State Implementation Plan Revisions; Butte County Air Quality Management District; Stationary Source Permits Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing a limited approval and limited disapproval of revisions to the Butte County Air Quality Management District (BCAQMD) portion of the California State Implementation Plan (SIP). These revisions concern the District’s New Source Review (NSR) permitting program for new and modified sources of air pollution. We are proposing action on these local rules under the Clean Air Act as amended in 1990 (CAA or the Act). We are taking comments on this proposal and plan to follow with a final action. DATES: Any comments must arrive by September 19, 2016. ADDRESSES: Submit your comments, identified by Docket ID No. [EPA–R09– OAR–2016–0332] 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 SUMMARY: E:\FR\FM\19AUP1.SGM 19AUP1 55403 Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules 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 http://www2.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region IX, (415) 972–3534, yannayon.laura@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to the EPA. Table of Contents Definitions 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 rules? II. The EPA’s Evaluation and Action A. How is the EPA evaluating the rules? B. Do the rules meet the evaluation criteria? C. Proposed Action and Public Comment III. Incorporation by Reference IV. 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 Act or CAA mean or refer to the Clean Air Act, unless the context indicates otherwise. (ii) The initials CARB mean or refer to the California Air Resources Board. (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 initials FR mean or refer to Federal Register. (vi) The word or initials BCAQMD or District mean or refer to the Butte County Air Quality Management District. (vii) The initials NAAQS mean or refer to National Ambient Air Quality Standards. (viii) The initials NSR mean or refer to New Source Review. (ix) The initials PM10 mean or refer to particulate matter with an aerodynamic diameter of less than or equal to 10 micrometers (coarse particulate matter). (x) 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). (xi) The initials SIP mean or refer to State Implementation Plan. (xii) The initials TSD mean or refer to the technical support document for this action. I. The State’s Submittal A. What rules did the State submit? Table 1 lists the rules addressed by this proposal, including the dates they were adopted by BCAQMD and submitted by CARB, which is the governor’s designee for California SIP submittals. TABLE 1—SUBMITTED RULES Rule No. Rule title 400 .................... 401 .................... 432 .................... Permit Requirements ................................................................................................................ Permit Exemptions .................................................................................................................... Federal New Source Review .................................................................................................... On December 18, 2014, EPA determined that the submittal of these rules met the completeness criteria in 40 CFR part 51 Appendix V, which must be met before formal EPA review. Submitted date Adopted date B. Are there other versions of these rules? There is no previous version of Rule 432 in the SIP; EPA approved previous 04/24/14 04/24/14 04/24/14 11/06/14 11/06/14 11/06/14 versions of the rules to be replaced by Rules 400 and 401 into the SIP as indicated in Table 2. TABLE 2—SIP APPROVED RULES Rule No. jstallworth on DSK7TPTVN1PROD with PROPOSALS 4–4 401 402 403 405 406 407 420 421 424 .................... .................... .................... .................... .................... .................... .................... .................... .................... .................... Exemptions from Permit Requirement ..................................................................................... General Requirements ............................................................................................................. Authority to Construct ............................................................................................................... Permit to Operate ..................................................................................................................... Permit Conditions ..................................................................................................................... Emission Calculations .............................................................................................................. Anniversary Date ...................................................................................................................... Standards for Granting Applications ........................................................................................ Conditional Approval ................................................................................................................ State Implementation Plan ....................................................................................................... EPA’s approval of Rule 401 would have the effect of entirely superseding our prior approval of Rule 4–4 in the SIP. Likewise, approval of Rules 400 and 432 will have the effect of entirely superseding our prior SIP approval of Rules 401, 402, 403, 405, 406, 407, 420, 421 and 424. VerDate Sep<11>2014 14:53 Aug 18, 2016 Jkt 238001 C. What is the purpose of the submitted rules? Section 110(a) of the CAA requires states to submit regulations that include a pre-construction permit program for certain new or modified stationary sources of pollutants, including a permit PO 00000 Frm 00023 Fmt 4702 Federal Register Citation SIP approval date Rule title Sfmt 4702 05/31/72 02/03/87 02/03/87 5/2/01 05/31/72 02/03/87 02/03/87 02/03/87 02/03/87 5/2/01 37 52 52 66 37 52 52 52 52 66 FR FR FR FR FR FR FR FR FR FR 10856 3226 3226 21875 10856 3226 3226 3226 3226 21875 program as required by Part D of Title I of the CAA. The purpose of District Rule 400 (Permit Requirements), Rule 401 (Permit Exemptions) and Rule 432 (Federal New Source Review) is to implement a federal preconstruction permit program for all new and modified minor sources, E:\FR\FM\19AUP1.SGM 19AUP1 55404 Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules and new and modified major sources of NAAQS pollutants for which the area is designated nonattainment. BCAQMD is currently designated as a nonattainment area for the 2008 8-hr ozone and 2006 24-hr PM2.5 NAAQS. We present our evaluation under the CAA and EPA’s regulations of the amended NSR rules submitted by CARB, as identified in Table 1, and provide our reasoning in general terms below and in more detail in our TSD, which is available in the docket for this proposed rulemaking. jstallworth on DSK7TPTVN1PROD with PROPOSALS II. EPA’s Evaluation and Action A. How is EPA evaluating the rules? The submitted rules must meet the CAA’s general requirements for SIPs and SIP revisions in CAA sections 110(a)(2), 110(l), and 193, as well as the applicable requirements contained in part D of title I of the Act (sections 172, 173, 182(a) and 189(e)) for a nonattainment NSR permit program. In addition, the submitted rules must contain the applicable regulatory provisions required by 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 EPA may not approve a SIP revision if it would interfere with any applicable requirements concerning attainment and reasonable further progress 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 permit 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. EPA’s regulations at 40 CFR 51.160–51.164 provide general programmatic requirements to implement this statutory mandate commonly referred to as the ‘‘minor NSR’’ or ‘‘general NSR’’ permit program. These NSR program regulations impose requirements for SIP approval of State and local programs that are more general in nature as compared to the specific statutory and regulatory requirements for nonattainment 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 VerDate Sep<11>2014 14:53 Aug 18, 2016 Jkt 238001 proposing to construct in nonattainment areas (section 173). Part D of title I of the Act also includes section 182(a), which contains the additional requirements for areas designated as a marginal ozone nonattainment area, and section 189(e), which requires the control of major stationary source of PM10 precursors (and hence PM2.5 precursors) ‘‘except where the Administrator determines that such sources do not contribute significantly to PM10 [and PM2.5] levels which exceed the standard in the area.’’ Additionally, 40 CFR 51.165 sets forth EPA’s regulatory requirements for SIPapproval of a nonattainment NSR permit program and 40 CFR 51.165(a)(13) contains specific requirements for regulating sources emitting PM2.5. 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 Class I Federal Area. Section 110(l) of the Act prohibits EPA from approving any SIP revisions that would interfere with any applicable requirement concerning attainment and reasonable further progress (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 SIPapproved 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? EPA has reviewed the submitted rules in accordance with the rule evaluation criteria described above. With respect to procedures, based on our review of the public process documentation included in the November 6, 2014 submittal, we are proposing to approve the submitted rules in part because we have determined that BCAQMD has provided sufficient evidence of public notice and opportunity for comment and public hearings prior to adoption and submittal of these rules, in accordance with the requirements of CAA sections 110(a)(2) and 110(l). With respect to substantive requirements, we have reviewed the submitted rules in accordance with the evaluation criteria discussed above. We PO 00000 Frm 00024 Fmt 4702 Sfmt 4702 are proposing to approve Rules 400 and 401 as part of BCAQMD’s general NSR permitting program because we have determined that these rules satisfy the substantive statutory and regulatory requirements for a general NSR permit program as contained in CAA section 110(a)(2)(C) and 40 CFR 51.160–51.164. In addition, we are proposing a limited approval of Rule 432 because we have determined that Rule 432 satisfies all of the statutory and regulatory requirements for 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)) and in 40 CFR 51.165 and 40 CFR 51.307. We are also proposing a limited disapproval of Rule 432 because we have determined that the rule does not fully satisfy CAA section 189(e) requirements for regulation of PM2.5 precursors. The rule does not specify ammonia as a PM2.5 precursor and the demonstration provided by Butte County as part of their NSR program submittal is not adequate to allow the Administrator to determine whether potential new major sources and major modifications of ammonia emissions will not contribute significantly to PM2.5 levels that exceed the standard in the area. Our TSD for this action contains additional information regarding our proposed limited disapproval. EPA is also proposing to find that it is acceptable for BCAQMD to not incorporate the NSR Reform provisions of 40 CFR 51.165 into its NSR permit program because BCAQMD’s permitting program will not be any less stringent than the federal permitting program. In addition, EPA is proposing to find that Rules 400, 401 and 432 meet the statutory requirements for SIP revisions as specified in sections 110(l) and 193 of the CAA. Please see our TSD for more information regarding our evaluation of Rules 400, 401 and 432. C. Proposed Action and Public Comment As authorized by CAA section 110(k)(3) and 301(a), we are proposing approval of Rule 400 (Permit Requirements) and Rule 401 (Permit Exemptions), and we are proposing limited approval and limited disapproval of Rule 432 (Federal New Source Review) into the BCAQMD portion of the California SIP. If finalized, this action will incorporate the submitted rules into the SIP, including those provisions identified as E:\FR\FM\19AUP1.SGM 19AUP1 Federal Register / Vol. 81, No. 161 / Friday, August 19, 2016 / Proposed Rules deficient.1 The approval of Rule 432 is limited because EPA is simultaneously proposing a limited disapproval of Rule 432 under section 110(k)(3). If this limited disapproval is finalized, it will trigger sanctions under CAA section 179 and 40 CFR 52.31 unless the EPA approves subsequent SIP revisions that correct the rule deficiencies within 18 months of the effective date of the final action. Note that Rule 432 has been adopted by the BCAQMD, and the EPA’s final limited disapproval would not prevent the local agency from enforcing it. The limited disapproval also would not prevent any portion of the rule from being incorporated by reference into the federally enforceable SIP as discussed in a July 9, 1992 EPA memo found at: http://www.epa.gov/nsr/ttnnsr01/gen/ pdf/memo-s.pdf. We will accept comments from the public on the proposed limited approval and limited disapproval for the next 30 days. 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 finalize the incorporation by reference the BCAQMD rules described in Table 1 of this preamble. The EPA has made, and will continue to make, these materials available electronically 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). IV. Statutory and Executive Order Reviews Additional information about these statutes and Executive Orders can be found at http://www2.epa.gov/lawsregulations/laws-and-executive-orders. jstallworth on DSK7TPTVN1PROD with PROPOSALS 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 1 If this proposed rule is finalized, Butte County Rules 400, 401 and 432, will supersede the existing SIP approved rules listed in Table 2. 14:53 Aug 18, 2016 Jkt 238001 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 III. Incorporation by Reference VerDate Sep<11>2014 impose additional requirements beyond those imposed by state law. 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. PO 00000 Frm 00025 Fmt 4702 Sfmt 4702 55405 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 Environmental protection, Air pollution control, 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: August 9, 2016. Alexis Strauss, Acting Regional Administrator, Region IX. [FR Doc. 2016–19766 Filed 8–18–16; 8:45 am] BILLING CODE 6560–50–P AGENCY FOR INTERNATIONAL DEVELOPMENT 48 CFR Parts 701, 722 and Appendix J RIN 0412–AA80 Agency for International Development Acquisition Regulation (AIDAR): Agency Warrant Program for Individual Cooperating Country National Personal Services Contractors (CCNPSCs) U.S. Agency for International Development. ACTION: Proposed rule. AGENCY: The U.S. Agency for International Development (USAID) proposes to amend the Agency for International Development Acquisition Regulation (AIDAR) to incorporate a warrant program for cooperating SUMMARY: E:\FR\FM\19AUP1.SGM 19AUP1

Agencies

[Federal Register Volume 81, Number 161 (Friday, August 19, 2016)]
[Proposed Rules]
[Pages 55402-55405]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19766]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2016-0322; FRL-9950-95-Region 9]


Approval and Limited Approval and Limited Disapproval of 
California State Implementation Plan Revisions; Butte County Air 
Quality Management District; Stationary Source Permits

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is proposing a 
limited approval and limited disapproval of revisions to the Butte 
County Air Quality Management District (BCAQMD) portion of the 
California State Implementation Plan (SIP). These revisions concern the 
District's New Source Review (NSR) permitting program for new and 
modified sources of air pollution. We are proposing action on these 
local rules under the Clean Air Act as amended in 1990 (CAA or the 
Act). We are taking comments on this proposal and plan to follow with a 
final action.

DATES: Any comments must arrive by September 19, 2016.

ADDRESSES: Submit your comments, identified by Docket ID No. [EPA-R09-
OAR-2016-0332] 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

[[Page 55403]]

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 http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region IX, (415) 
972-3534, yannayon.laura@epa.gov.

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

Table of Contents

Definitions

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 rules?
II. The EPA's Evaluation and Action
    A. How is the EPA evaluating the rules?
    B. Do the rules meet the evaluation criteria?
    C. Proposed Action and Public Comment
III. Incorporation by Reference
IV. 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 Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.
    (ii) The initials CARB mean or refer to the California Air 
Resources Board.
    (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 initials FR mean or refer to Federal Register.
    (vi) The word or initials BCAQMD or District mean or refer to the 
Butte County Air Quality Management District.
    (vii) The initials NAAQS mean or refer to National Ambient Air 
Quality Standards.
    (viii) The initials NSR mean or refer to New Source Review.
    (ix) The initials PM10 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 10 micrometers (coarse 
particulate matter).
    (x) 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).
    (xi) The initials SIP mean or refer to State Implementation Plan.
    (xii) The initials TSD mean or refer to the technical support 
document for this action.

I. The State's Submittal

A. What rules did the State submit?

    Table 1 lists the rules addressed by this proposal, including the 
dates they were adopted by BCAQMD and submitted by CARB, which is the 
governor's designee for California SIP submittals.

                        Table 1--Submitted Rules
------------------------------------------------------------------------
       Rule No.            Rule title      Adopted date   Submitted date
------------------------------------------------------------------------
400...................  Permit                  04/24/14        11/06/14
                         Requirements.
401...................  Permit                  04/24/14        11/06/14
                         Exemptions.
432...................  Federal New             04/24/14        11/06/14
                         Source Review.
------------------------------------------------------------------------

    On December 18, 2014, EPA determined that the submittal of these 
rules met the completeness criteria in 40 CFR part 51 Appendix V, which 
must be met before formal EPA review.

B. Are there other versions of these rules?

    There is no previous version of Rule 432 in the SIP; EPA approved 
previous versions of the rules to be replaced by Rules 400 and 401 into 
the SIP as indicated in Table 2.

                                           Table 2--SIP Approved Rules
----------------------------------------------------------------------------------------------------------------
                                                                  SIP approval
             Rule No.                       Rule title                date         Federal  Register  Citation
----------------------------------------------------------------------------------------------------------------
4-4..............................  Exemptions from Permit              05/31/72  37 FR 10856
                                    Requirement.
401..............................  General Requirements........        02/03/87  52 FR 3226
402..............................  Authority to Construct......        02/03/87  52 FR 3226
403..............................  Permit to Operate...........          5/2/01  66 FR 21875
405..............................  Permit Conditions...........        05/31/72  37 FR 10856
406..............................  Emission Calculations.......        02/03/87  52 FR 3226
407..............................  Anniversary Date............        02/03/87  52 FR 3226
420..............................  Standards for Granting              02/03/87  52 FR 3226
                                    Applications.
421..............................  Conditional Approval........        02/03/87  52 FR 3226
424..............................  State Implementation Plan...          5/2/01  66 FR 21875
----------------------------------------------------------------------------------------------------------------

    EPA's approval of Rule 401 would have the effect of entirely 
superseding our prior approval of Rule 4-4 in the SIP. Likewise, 
approval of Rules 400 and 432 will have the effect of entirely 
superseding our prior SIP approval of Rules 401, 402, 403, 405, 406, 
407, 420, 421 and 424.

C. What is the purpose of the submitted rules?

    Section 110(a) of the CAA requires states to submit regulations 
that include a pre-construction permit program for certain 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 District Rule 400 (Permit Requirements), Rule 401 
(Permit Exemptions) and Rule 432 (Federal New Source Review) is to 
implement a federal preconstruction permit program for all new and 
modified minor sources,

[[Page 55404]]

and new and modified major sources of NAAQS pollutants for which the 
area is designated nonattainment. BCAQMD is currently designated as a 
nonattainment area for the 2008 8-hr ozone and 2006 24-hr 
PM2.5 NAAQS. We present our evaluation under the CAA and 
EPA's regulations of the amended NSR rules submitted by CARB, as 
identified in Table 1, and provide our reasoning in general terms below 
and in more detail in our TSD, which is available in the docket for 
this proposed rulemaking.

II. EPA's Evaluation and Action

A. How is EPA evaluating the rules?

    The submitted rules must meet the CAA's general requirements for 
SIPs and SIP revisions in CAA sections 110(a)(2), 110(l), and 193, as 
well as the applicable requirements contained in part D of title I of 
the Act (sections 172, 173, 182(a) and 189(e)) for a nonattainment NSR 
permit program. In addition, the submitted rules must contain the 
applicable regulatory provisions required by 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 EPA may not approve a SIP revision if 
it would interfere with any applicable requirements concerning 
attainment and reasonable further progress 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 
permit 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. EPA's regulations at 40 
CFR 51.160-51.164 provide general programmatic requirements to 
implement this statutory mandate commonly referred to as the ``minor 
NSR'' or ``general NSR'' permit program. These NSR program regulations 
impose requirements for SIP approval of State and local programs that 
are more general in nature as compared to the specific statutory and 
regulatory requirements for nonattainment 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). Part D of title I of the Act also includes section 182(a), which 
contains the additional requirements for areas designated as a marginal 
ozone nonattainment area, and section 189(e), which requires the 
control of major stationary source of PM10 precursors (and 
hence PM2.5 precursors) ``except where the Administrator 
determines that such sources do not contribute significantly to 
PM10 [and PM2.5] levels which exceed the standard 
in the area.'' Additionally, 40 CFR 51.165 sets forth EPA's regulatory 
requirements for SIP-approval of a nonattainment NSR permit program and 
40 CFR 51.165(a)(13) contains specific requirements for regulating 
sources emitting PM2.5.
    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 Class I Federal Area.
    Section 110(l) of the Act prohibits EPA from approving any SIP 
revisions that would interfere with any applicable requirement 
concerning attainment and reasonable further progress (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?

    EPA has reviewed the submitted rules in accordance with the rule 
evaluation criteria described above. With respect to procedures, based 
on our review of the public process documentation included in the 
November 6, 2014 submittal, we are proposing to approve the submitted 
rules in part because we have determined that BCAQMD has provided 
sufficient evidence of public notice and opportunity for comment and 
public hearings prior to adoption and submittal of these rules, in 
accordance with the requirements of CAA sections 110(a)(2) and 110(l).
    With respect to substantive requirements, we have reviewed the 
submitted rules in accordance with the evaluation criteria discussed 
above. We are proposing to approve Rules 400 and 401 as part of 
BCAQMD's general NSR permitting program because we have determined that 
these rules satisfy the substantive statutory and regulatory 
requirements for a general NSR permit program as contained in CAA 
section 110(a)(2)(C) and 40 CFR 51.160-51.164.
    In addition, we are proposing a limited approval of Rule 432 
because we have determined that Rule 432 satisfies all of the statutory 
and regulatory requirements for 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)) and in 40 CFR 51.165 and 40 CFR 51.307.
    We are also proposing a limited disapproval of Rule 432 because we 
have determined that the rule does not fully satisfy CAA section 189(e) 
requirements for regulation of PM2.5 precursors. The rule 
does not specify ammonia as a PM2.5 precursor and the 
demonstration provided by Butte County as part of their NSR program 
submittal is not adequate to allow the Administrator to determine 
whether potential new major sources and major modifications of ammonia 
emissions will not contribute significantly to PM2.5 levels 
that exceed the standard in the area. Our TSD for this action contains 
additional information regarding our proposed limited disapproval.
    EPA is also proposing to find that it is acceptable for BCAQMD to 
not incorporate the NSR Reform provisions of 40 CFR 51.165 into its NSR 
permit program because BCAQMD's permitting program will not be any less 
stringent than the federal permitting program. In addition, EPA is 
proposing to find that Rules 400, 401 and 432 meet the statutory 
requirements for SIP revisions as specified in sections 110(l) and 193 
of the CAA.
    Please see our TSD for more information regarding our evaluation of 
Rules 400, 401 and 432.

C. Proposed Action and Public Comment

    As authorized by CAA section 110(k)(3) and 301(a), we are proposing 
approval of Rule 400 (Permit Requirements) and Rule 401 (Permit 
Exemptions), and we are proposing limited approval and limited 
disapproval of Rule 432 (Federal New Source Review) into the BCAQMD 
portion of the California SIP. If finalized, this action will 
incorporate the submitted rules into the SIP, including those 
provisions identified as

[[Page 55405]]

deficient.\1\ The approval of Rule 432 is limited because EPA is 
simultaneously proposing a limited disapproval of Rule 432 under 
section 110(k)(3). If this limited disapproval is finalized, it will 
trigger sanctions under CAA section 179 and 40 CFR 52.31 unless the EPA 
approves subsequent SIP revisions that correct the rule deficiencies 
within 18 months of the effective date of the final action.
---------------------------------------------------------------------------

    \1\ If this proposed rule is finalized, Butte County Rules 400, 
401 and 432, will supersede the existing SIP approved rules listed 
in Table 2.
---------------------------------------------------------------------------

    Note that Rule 432 has been adopted by the BCAQMD, and the EPA's 
final limited disapproval would not prevent the local agency from 
enforcing it. The limited disapproval also would not prevent any 
portion of the rule from being incorporated by reference into the 
federally enforceable SIP as discussed in a July 9, 1992 EPA memo found 
at: http://www.epa.gov/nsr/ttnnsr01/gen/pdf/memo-s.pdf.
    We will accept comments from the public on the proposed limited 
approval and limited disapproval for the next 30 days.

III. 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 finalize the 
incorporation by reference the BCAQMD rules described in Table 1 of 
this preamble. The EPA has made, and will continue to make, these 
materials available electronically 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).

IV. 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

    Environmental protection, Air pollution control, 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: August 9, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016-19766 Filed 8-18-16; 8:45 am]
BILLING CODE 6560-50-P