Partial Approval and Partial Disapproval of California Air Plan Revisions; South Coast Air Quality Management District, 76547-76550 [2016-26613]
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Federal Register / Vol. 81, No. 213 / Thursday, November 3, 2016 / Proposed Rules
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December 5, 2016.
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DATES:
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2016–0215; FRL–9954–91–
Region 9]
Partial Approval and Partial
Disapproval of California Air Plan
Revisions; South Coast Air Quality
Management District
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing a partial
approval and partial disapproval of a
revision to the South Coast Air Quality
Management District (SCAQMD or
District) portion of the California State
Implementation Plan (SIP). This
revision concerns the District’s
demonstration regarding Reasonably
Available Control Technology (RACT)
requirements for the 2008 8-hour ozone
National Ambient Air Quality Standard
(NAAQS) in the South Coast Air Basin
and Coachella Valley ozone
nonattainment areas. We are proposing
action on a local SIP revision under the
Clean Air Act (CAA or the Act). We are
taking comments on this proposal and
plan to follow with a final action.
SUMMARY:
76547
making effective comments, please visit
https://www2.epa.gov/dockets/
commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT:
Stanley Tong, EPA Region IX, (415)
947–4122, tong.stanley@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, ‘‘we,’’ ‘‘us,’’
and ‘‘our’’ refer to the EPA.
Table of Contents
I. The State’s Submittal
A. What document did the State submit?
B. Are there other versions of this
document?
C. What is the purpose of the RACT SIP
submission?
II. The EPA’s Evaluation and Proposed
Action
A. How is the EPA evaluating the RACT
SIP submission?
B. Does the RACT SIP submission meet the
evaluation criteria?
C. What are the RACT deficiencies?
D. The EPA’s Recommendations To
Further Improve the RACT SIP
E. Proposed Action and Public Comment
III. Statutory and Executive Order Reviews
I. The State’s Submittal
A. What document did the State submit?
Table 1 lists the document addressed
by this proposal with the date that it
was adopted by the local air agency and
submitted by the California Air
Resources Board (CARB).
TABLE 1—SUBMITTED DOCUMENT
Local agency
Document
SCAQMD ...................
SCAQMD 2016 Air Quality Management Plan (AQMP) Reasonably Available Control
Technology (RACT) Demonstration ‘‘2016 AQMP RACT SIP’’.
On January 18, 2015, the submittal for
the SCAQMD 2016 AQMP RACT SIP
was deemed by operation of law to meet
the completeness criteria in 40 CFR part
51 Appendix V, which must be met
before formal EPA review.
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B. Are there other versions of this
document?
There is no previous version of this
document in the SCAQMD portion of
the California SIP for the 2008 8-hour
ozone standard.
C. What is the purpose of the RACT SIP
submission?
Volatile Organic Compounds (VOCs)
and nitrogen oxides (NOX) help produce
ground-level ozone, smog and
particulate matter (PM), which harm
human health and the environment.
Section 110(a) of the CAA requires
states to submit regulations that control
VOC and NOX emissions. Sections
182(b)(2) and (f) require that SIPs for
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Adopted
ozone nonattainment areas classified as
moderate or above implement RACT for
any source covered by a Control
Techniques Guidelines (CTG) document
and for any major source of VOCs or
NOX.
The SCAQMD is subject to the RACT
requirement as it is authorized under
state law to regulate stationary sources
in the South Coast Air Basin (‘‘South
Coast’’), which is classified as an
extreme nonattainment area, and in the
Coachella Valley portion of Riverside
County (‘‘Coachella Valley’’), which is
classified as a severe-15 nonattainment
area for the 2008 8-hour ozone NAAQS
(40 CFR 81.305); 77 FR 30088 at 30101
and 30103 (May 21, 2012). Therefore,
the SCAQMD must, at a minimum,
adopt RACT-level controls for all
sources covered by a CTG document
and for all major non-CTG sources of
VOCs or NOX within the two
nonattainment areas. Any stationary
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source that emits or has the potential to
emit at least 10 tons per year of VOCs
or NOX is a major stationary source in
an extreme ozone nonattainment area
(CAA section 182(e) and (f)), and any
stationary source that emits or has the
potential to emit at least 25 tons per
year of VOCs or NOX is a major
stationary source in a severe ozone
nonattainment area (CAA section 182(d)
and (f)).
Section III.D of the preamble to the
EPA’s final rule to implement the 2008
ozone NAAQS (80 FR 12264, March 6,
2015) discusses RACT requirements. It
states in part that RACT SIPs must
contain adopted RACT regulations,
certifications where appropriate that
existing provisions are RACT, and/or
negative declarations that there are no
sources in the nonattainment area
covered by a specific CTG source
category and that states must submit
appropriate supporting information for
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their RACT submissions as described in
the EPA’s implementation rule for the
1997 ozone NAAQS. See id., at 12278;
70 FR 71612, at 71652 (November 29,
2005). The submitted document
provides SCAQMD’s analyses of its
compliance with the CAA section 182
RACT requirements for the 2008 8-hour
ozone NAAQS. The EPA’s technical
support document (TSD) has more
information about the District’s
submission and the EPA’s evaluation
thereof.
II. The EPA’s Evaluation and Proposed
Action
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A. How is the EPA evaluating the RACT
SIP submission?
SIP rules must be enforceable (see
CAA section 110(a)(2)), must not
interfere with applicable requirements
concerning attainment and reasonable
further progress or other CAA
requirements (see CAA section 110(l)),
and must not modify certain SIP control
requirements in nonattainment areas
without ensuring equivalent or greater
emissions reductions (see CAA section
193). Generally, SIP rules must require
RACT for each category of sources
covered by a CTG document as well as
each major source of VOCs or NOX in
ozone nonattainment areas classified as
moderate or above (see CAA section
182(b)(2)). The SCAQMD regulates an
extreme ozone nonattainment area (i.e.,
the South Coast Air Basin) and a severe
ozone nonattainment area (i.e.,
Coachella Valley) (see 40 CFR 81.305),
so the District’s rules must implement
RACT.
Guidance and policy documents that
we use to evaluate enforceability,
revision/relaxation and rule stringency
requirements for the applicable criteria
pollutants include the following:
1. ‘‘Final Rule to Implement the 8-hour
Ozone National Ambient Air Quality
Standard—Phase 2’’ (70 FR 71612;
November 29, 2005).
2. ‘‘State Implementation Plans; General
Preamble for the Implementation of Title
I of the Clean Air Act Amendments of
1990,’’ 57 FR 13498 (April 16, 1992); 57
FR 18070 (April 28, 1992).
3. ‘‘Issues Relating to VOC Regulation
Cutpoints, Deficiencies, and Deviations,’’
EPA, May 25, 1988 (the Bluebook,
revised January 11, 1990).
4. ‘‘Guidance Document for Correcting
Common VOC & Other Rule
Deficiencies,’’ EPA Region 9, August 21,
2001 (the Little Bluebook).
5. ‘‘State Implementation Plans; Nitrogen
Oxides Supplement to the General
Preamble; Clean Air Act Amendments of
1990 Implementation of Title I; Proposed
Rule,’’ (the NOX Supplement), 57 FR
55620, November 25, 1992.
6. Memorandum from William T. Harnett to
Regional Air Division Directors, (May 18,
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2006), ‘‘RACT Qs & As—Reasonably
Available Control Technology (RACT)
Questions and Answers’’.
7. RACT SIPs, Letter dated March 9, 2006
from EPA Region IX (Andrew Steckel) to
CARB (Kurt Karperos) describing Region
IX’s understanding of what constitutes a
minimally acceptable RACT SIP.
8. RACT SIPs, Letter dated April 4, 2006 from
EPA Region IX (Andrew Steckel) to
CARB (Kurt Karperos) listing EPA’s
current CTGs, ACTs, and other
documents which may help to establish
RACT.
9. ‘‘Implementation of the 2008 National
Ambient Air Quality Standards for
Ozone: State Implementation Plan
Requirements’’ (80 FR 12264; March 6,
2015).
B. Does the RACT SIP submission meet
the evaluation criteria?
The 2016 AQMP RACT SIP
(submitted July 18, 2014) builds on the
District’s previous RACT SIP
demonstrations: The 2006 RACT SIP (73
FR 76947, December 18, 2008), the 2007
AQMP (77 FR 12674, March 1, 2012)
and the 2012 AQMP (79 FR 52526,
September 3, 2014). The 2016 AQMP
RACT SIP concludes, after a review and
evaluation of more than 30 rules
recently developed by other ozone
nonattainment air districts, that
SCAQMD’s current rules meet the EPA’s
criteria for RACT acceptability and
inclusion in the SIP for the 2008 8-hour
ozone NAAQS. A RACT SIP should
consider requirements that apply to
CTG source categories and all major
stationary sources of VOC or NOX
emissions.
With regard to CTG and non-CTG
source categories, based on its research
of the District’s permit databases and
telephone directories for sources in the
District for the 2007 AQMP, the 2012
AQMP, and the 2016 AQMP RACT SIP,
the SCAQMD concluded that all
identified sources have applicable
RACT rules. As such, we characterize
the 2016 AQMP RACT SIP as a
certification-type of RACT SIP
submittal. Because the District’s VOC
and NOX rules apply equally in both the
South Coast and Coachella Valley, the
District’s certification in this regard
extends to both ozone nonattainment
areas.
Where there are no existing sources
covered by a particular CTG document,
states may, in lieu of adopting RACT
requirements for those sources, adopt
negative declarations certifying that
there are no such sources in the relevant
nonattainment area. The 2007 AQMP
indicates there are existing sources for
each CTG document issued before 2006,
and the 2012 AQMP indicates there are
existing sources for each CTG document
issued from 2006 to 2008. The EPA has
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Sfmt 4702
not issued any CTGs since 2008. The
SCAQMD did not report any negative
declarations in the 2016 AQMP RACT
SIP as well.
However, subsequent to its 2016
AQMP RACT SIP submittal, the EPA
had several discussions with the
SCAQMD and concluded there may be
two CTG categories where the District
has no sources applicable to the CTGs.
For the Paper, Film and Foil coatings
CTG, it appears from a review of: The
standard industrial codes (SIC)
applicable to the CTG, the CARB’s
emissions inventory, and discussion
with the SCAQMD permit engineer, that
the SCAQMD has no paper coating
sources with coating lines exceeding the
CTG’s applicability threshold (EPA 453/
R–07–003). For the Surface Coating
Operations at Shipbuilding and Repair
Facilities CTG (61 FR–44050, August 27,
1996 and EPA–453/R–94–032), the
SCAQMD indicates it only has one
active title V shipyard facility that is
subject to Rule 1106, Marine Coating
Operations. The one coating category in
Rule 1106 that exceeds the CTG’s VOC
content limit is inorganic zinc and the
District indicates inorganic zinc coating
is not used at the facility. Consequently,
the EPA recommends that the SCAQMD
evaluate, and adopt where appropriate,
negative declarations for these two CTG
categories. The EPA concurs that there
are no other negative declarations.
Based on our review and evaluation of
the documentation provided by the
SCAQMD in the 2016 AQMP RACT SIP
and earlier plans, we agree that existing
District rules approved in the SIP meet
or are more stringent than the
corresponding CTG limits and
exemption thresholds for each category
of VOC sources covered by a CTG
document, and given that the CTG
documents represent presumptive
RACT level of control, we conclude that
existing District rules require the
implementation of RACT for each
category of VOC sources covered by a
CTG document located in the South
Coast and Coachella Valley.
With respect to major stationary
sources of VOC or NOX emissions, the
District provided supplemental
information identifying 21 new major
title V sources since its 2006 RACT SIP
certification and provided a list of
equipment at these facilities that emit
greater than 5 tpy. The District
concluded that the equipment were
covered by rules that implement RACT.
The District’s efforts to identify all new
major sources appears to be thorough,
and we agree that existing District rules
approved in the SIP require
implementation of RACT for all major
non-CTG VOC sources in the South
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Coast and Coachella Valley. We disagree
that all major NOX sources in the South
Coast are subject to SIP-approved RACT
rules or RACT-equivalent programs as
explained in the following section.
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C. What are the RACT deficiencies?
Within the South Coast, major NOX
sources are included in SCAQMD’s
Regulation XX (‘‘Regional Clean Air
Incentives Market (RECLAIM)’’)
program. The District adopted the
RECLAIM program in 1993 to reduce
emissions from the largest stationary
sources of NOX and oxides of sulfur
(SOX) emissions through a market-based
trading program that establishes annual
declining NOX and SOX allocations (also
called ‘‘facility caps’’) and allows
covered facilities to comply with their
facility caps by installing pollution
control equipment, changing operations,
or purchasing RECLAIM trading credits
(RTCs) from the RECLAIM market.
Section 40440 of the California Health
and Safety Code (CH&SC) requires the
District to monitor advances in best
available retrofit control technology
(BARCT) and periodically to reassess
the overall facility caps to ensure that
the facility caps are equivalent, in the
aggregate, to BARCT emission levels
imposed on affected sources.1 Facilities
subject to RECLAIM are exempted from
a number of District prohibitory rules
that otherwise apply to sources of NOX
and SOX emissions in the South Coast.2
With certain exceptions, facilities
located in Coachella Valley are not
included in the RECLAIM program.
Under longstanding EPA
interpretation of the CAA, a marketbased cap and trade program may satisfy
RACT requirements by ensuring that the
level of emission reductions resulting
from implementation of the program
will be equal, in the aggregate, to those
reductions expected from the direct
application of RACT on all affected
sources within the nonattainment area.3
The EPA approved the RECLAIM
1 BARCT is defined as ‘‘an emission limitation
that is based on the maximum degree of reduction
achievable taking into account environmental,
energy, and economic impacts by each class or
category of source.’’ CH&SC section 40406. For the
purposes of comparison, the EPA defines RACT as
the lowest emission limitation that a particular
source is capable of meeting by the application of
control technology that is reasonably available
considering technological and economic feasibility.
44 FR 53762 (September 17, 1979). As such, we
generally find that BARCT level of control meets or
exceeds RACT level of control.
2 District Rule 2001 (‘‘Applicability’’), as
amended May 6, 2005. Facilities in Coachella
Valley are prohibited from entering the RECLAIM
program except as allowed under Rule 2001(i)(1)(I).
3 59 FR 16690 (April 7, 1994) and EPA,
‘‘Improving Air Quality with Economic Incentive
Programs,’’ EPA–452/R–01–001 (January 2001), at
Section 16.7.
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program into the California SIP in June
1998 based in part on a conclusion that
the NOX emission caps in the program
satisfied the RACT requirements of CAA
section 182(b)(2) and (f) for covered
NOX emission sources in the aggregate.4
In 2005 and 2010, the District adopted
revisions to the NOX RECLAIM
program, which the EPA approved in
2006 and 2011, respectively, based in
part on conclusions that the revisions
continued to satisfy NOX RACT
requirements.5 We refer to the current
NOX RECLAIM program as approved
into the SIP as the ‘‘2010 RECLAIM
program.’’
The 2016 AQMP RACT SIP relies on
the 2010 RECLAIM program to satisfy
the RACT requirements for major NOX
sources in the South Coast and
Coachella Valley. However, based on
new information contained in
SCAQMD’s December 2015 Draft Final
Staff Report (‘‘2015 staff report’’)
revising Regulation XX, we find that
additional NOX reductions are now
required to achieve RACT as evidenced
by the lack of controls on some refinery
boiler units and the District’s proposal
to reduce the NOX RECLAIM emissions
cap.6 A more detailed discussion about
RECLAIM and the requirement that the
program ensures, in the aggregate, NOX
emissions reductions equivalent to
RACT-level controls can be found in our
partial approval/disapproval of the
South Coast Moderate Area Plan for the
2006 PM2.5 NAAQS.7
Thus, based on our evaluation
discussed above, we propose to partially
approve and partially disapprove the
2016 AQMP RACT SIP certification
because, while we find that existing SIPapproved District rules implement
RACT for all sources covered by a CTG
document and for all major non-CTG
VOC sources in both the South Coast
and Coachella Valley, we also find that
the 2010 RECLAIM program does not
achieve NOX emission reductions equal,
in the aggregate, to those reductions
expected from the direct application of
RACT on all major NOX sources in the
South Coast.8
4 61 FR 57834 (November 8, 1996) and 63 FR
32621 (June 15, 1998).
5 71 FR 51120 (August 29, 2006) and 76 FR 50128
(August 12, 2011).
6 Draft Final Staff Report, Proposed Amendments
to Regulation XX Regional Clean Air Initiatives
Market (RECLAIM) NOX RECLAIM, December 4,
2015 https://www.aqmd.gov/docs/default-source/
Agendas/Governing-Board/2015/2015-dec4030.pdf?sfvrsn=9.
7 81 FR 22025, 22027 and 22028 (April 14, 2016)
discussing an absence of a demonstration that the
2010 RECLAIM program ensures, in the aggregate,
NOX emission reductions equivalent to RACT-level
controls.
8 This finding does not apply to Coachella Valley
because we have determined that the two RECLAIM
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76549
We note that, on December 4, 2015,
the SCAQMD adopted a new NOX
emissions cap that reflects a level of 2
ppmv NOX for refinery boilers/heaters
>40 MMBtu/hr indicating that controls
‘‘are either commercially available,
achieved-in-practice and/or can be
designed to achieve 2 ppmv NOX in a
cost-effective manner.’’ 9 However, the
amended RECLAIM program has not
been submitted to the EPA as a SIP
revision and such a submittal would
need to include a demonstration of how
the RECLAIM program, as amended,
provides for NOX emission reductions
equal, in the aggregate, to those
reductions expected from the direct
application of RACT on all major NOX
sources in the South Coast.
D. The EPA’s Recommendations To
Further Improve the RACT SIP
Our TSD for the 2016 AQMP RACT
SIP provides additional
recommendations for future rule
improvements.
E. Proposed Action and Public
Comment
For the reasons discussed above and
explained more fully in our TSD, the
EPA proposes to partially approve and
partially disapprove the CARB’s July 18,
2014 submittal of the SCAQMD 2016
AQMP RACT SIP as a revision to the
California SIP. Under CAA section
110(k)(3), we propose to approve the
2016 AQMP RACT SIP, with the
exception of major NOX sources in the
South Coast, as satisfying the RACT
requirements of CAA section 182(b)(2)
and (f) for the South Coast and the
Coachella Valley ozone nonattainment
areas.
Also under CAA section 110(k)(3), we
propose to disapprove the 2016 AQMP
RACT SIP as it pertains to major NOX
sources in the South Coast based on the
EPA’s finding that the 2010 RECLAIM
program no longer ensures NOX
reductions equivalent to RACT-level
controls at each individual major NOX
source in the South Coast.
If finalized, the partial disapproval
would trigger the 2-year clock for the
federal implementation plan (FIP)
requirement under section 110(c). In
addition, final disapproval would
trigger sanctions under CAA section 179
and 40 CFR 52.31 unless the EPA
approves a subsequent SIP revision that
corrects the RACT SIP deficiency within
facilities located in Coachella Valley are equipped
with control technology that meets or exceeds
RACT level of control.
9 Draft Final Staff Report, Proposed Amendments
to Regulation XX Regional Clean Air Initiatives
Market (RECLAIM) NOX RECLAIM, December 4,
2015, (page 92).
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18 months of the effective date of the
final action. We note that our partial
disapproval of the District’s Moderate
Area Plan for the 2006 PM2.5 NAAQS,
81 FR 22025 (April 14, 2016), has
already started CAA sanction and FIP
clocks for a NOX RACT deficiency.
Termination of those existing clocks by
EPA approval of a SIP revision
submittal addressing the NOX RACT
deficiency in the Moderate Area Plan
would also terminate sanction/FIP
clocks associated with final partial
disapproval of the RACT SIP if the SIP
revision demonstrates compliance with
both the Reasonably Available Control
Measure (RACM)/RACT requirement for
PM2.5 and the section 182 RACT
requirement for ozone with respect to
stationary NOX sources in the South
Coast.
We will accept comments from the
public on the proposed partial approval
and partial disapproval for the next 30
days.
III. Statutory and Executive Order
Reviews
Additional information about these
statutes and Executive Orders can be
found at https://www2.epa.gov/lawsregulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
This proposed 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 proposed 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.
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C. Regulatory Flexibility Act (RFA)
I certify that this proposed 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 proposed 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
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state, local, or tribal governments, or to
the private sector, will result from this
action.
E. Executive Order 13132: Federalism
This proposed 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 proposed 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 proposed 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 proposed 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
proposed 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.
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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,
Nitrogen dioxide, Ozone, Reporting and
recordkeeping requirements, Oxides of
sulfur, Volatile organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: October 19, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016–26613 Filed 11–2–16; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 63
[EPA–HQ–OAR–2010–0682; FRL–9954–94–
OAR]
RIN 2060–AT18
National Emission Standards for
Hazardous Air Pollutant Emissions:
Petroleum Refinery Sector
Environmental Protection
Agency (EPA).
ACTION: Proposed rule; notice of public
hearing and extension of comment
period.
AGENCY:
On October 18, 2016, the
Environmental Protection Agency (EPA)
published a document to announce its
reconsideration of and request for
public comment on five issues in the
final National Emission Standards for
Hazardous Air Pollutant Emissions:
Petroleum Refinery Sector that was
published on December 1, 2015.
Petitioners claim that the public was not
afforded an adequate opportunity to
comment on these five issues.
Additionally, the EPA proposed
amendments to the final rule to clarify
a compliance issue raised by
stakeholders subject to the final rule and
to correct a referencing error. The EPA
is announcing that a public hearing will
be held and extending the public
comment period.
DATES: The public hearing will be held
on November 17, 2016. The comment
period for the proposed rule published
in the Federal Register of October 18,
2016 (81 FR 71661), is extended.
Written comments must be received on
or before December 19, 2016.
SUMMARY:
E:\FR\FM\03NOP1.SGM
03NOP1
Agencies
[Federal Register Volume 81, Number 213 (Thursday, November 3, 2016)]
[Proposed Rules]
[Pages 76547-76550]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-26613]
[[Page 76547]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R09-OAR-2016-0215; FRL-9954-91-Region 9]
Partial Approval and Partial Disapproval of California Air Plan
Revisions; South Coast Air Quality Management District
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: The Environmental Protection Agency (EPA) is proposing a
partial approval and partial disapproval of a revision to the South
Coast Air Quality Management District (SCAQMD or District) portion of
the California State Implementation Plan (SIP). This revision concerns
the District's demonstration regarding Reasonably Available Control
Technology (RACT) requirements for the 2008 8-hour ozone National
Ambient Air Quality Standard (NAAQS) in the South Coast Air Basin and
Coachella Valley ozone nonattainment areas. We are proposing action on
a local SIP revision under the Clean Air Act (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 December 5, 2016.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2016-0215 at https://www.regulations.gov, or via email to
Steckel.Andrew@epa.gov. For comments submitted at Regulations.gov,
follow the online instructions for submitting comments. Once submitted,
comments cannot be edited or removed 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://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Stanley Tong, EPA Region IX, (415)
947-4122, tong.stanley@epa.gov.
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us,''
and ``our'' refer to the EPA.
Table of Contents
I. The State's Submittal
A. What document did the State submit?
B. Are there other versions of this document?
C. What is the purpose of the RACT SIP submission?
II. The EPA's Evaluation and Proposed Action
A. How is the EPA evaluating the RACT SIP submission?
B. Does the RACT SIP submission meet the evaluation criteria?
C. What are the RACT deficiencies?
D. The EPA's Recommendations To Further Improve the RACT SIP
E. Proposed Action and Public Comment
III. Statutory and Executive Order Reviews
I. The State's Submittal
A. What document did the State submit?
Table 1 lists the document addressed by this proposal with the date
that it was adopted by the local air agency and submitted by the
California Air Resources Board (CARB).
Table 1--Submitted Document
----------------------------------------------------------------------------------------------------------------
Local agency Document Adopted Submitted
----------------------------------------------------------------------------------------------------------------
SCAQMD.................................... SCAQMD 2016 Air Quality Management 06/06/14 07/18/14
Plan (AQMP) Reasonably Available
Control Technology (RACT)
Demonstration ``2016 AQMP RACT
SIP''.
----------------------------------------------------------------------------------------------------------------
On January 18, 2015, the submittal for the SCAQMD 2016 AQMP RACT
SIP was deemed by operation of law to meet the completeness criteria in
40 CFR part 51 Appendix V, which must be met before formal EPA review.
B. Are there other versions of this document?
There is no previous version of this document in the SCAQMD portion
of the California SIP for the 2008 8-hour ozone standard.
C. What is the purpose of the RACT SIP submission?
Volatile Organic Compounds (VOCs) and nitrogen oxides
(NOX) help produce ground-level ozone, smog and particulate
matter (PM), which harm human health and the environment. Section
110(a) of the CAA requires states to submit regulations that control
VOC and NOX emissions. Sections 182(b)(2) and (f) require
that SIPs for ozone nonattainment areas classified as moderate or above
implement RACT for any source covered by a Control Techniques
Guidelines (CTG) document and for any major source of VOCs or
NOX.
The SCAQMD is subject to the RACT requirement as it is authorized
under state law to regulate stationary sources in the South Coast Air
Basin (``South Coast''), which is classified as an extreme
nonattainment area, and in the Coachella Valley portion of Riverside
County (``Coachella Valley''), which is classified as a severe-15
nonattainment area for the 2008 8-hour ozone NAAQS (40 CFR 81.305); 77
FR 30088 at 30101 and 30103 (May 21, 2012). Therefore, the SCAQMD must,
at a minimum, adopt RACT-level controls for all sources covered by a
CTG document and for all major non-CTG sources of VOCs or
NOX within the two nonattainment areas. Any stationary
source that emits or has the potential to emit at least 10 tons per
year of VOCs or NOX is a major stationary source in an
extreme ozone nonattainment area (CAA section 182(e) and (f)), and any
stationary source that emits or has the potential to emit at least 25
tons per year of VOCs or NOX is a major stationary source in
a severe ozone nonattainment area (CAA section 182(d) and (f)).
Section III.D of the preamble to the EPA's final rule to implement
the 2008 ozone NAAQS (80 FR 12264, March 6, 2015) discusses RACT
requirements. It states in part that RACT SIPs must contain adopted
RACT regulations, certifications where appropriate that existing
provisions are RACT, and/or negative declarations that there are no
sources in the nonattainment area covered by a specific CTG source
category and that states must submit appropriate supporting information
for
[[Page 76548]]
their RACT submissions as described in the EPA's implementation rule
for the 1997 ozone NAAQS. See id., at 12278; 70 FR 71612, at 71652
(November 29, 2005). The submitted document provides SCAQMD's analyses
of its compliance with the CAA section 182 RACT requirements for the
2008 8-hour ozone NAAQS. The EPA's technical support document (TSD) has
more information about the District's submission and the EPA's
evaluation thereof.
II. The EPA's Evaluation and Proposed Action
A. How is the EPA evaluating the RACT SIP submission?
SIP rules must be enforceable (see CAA section 110(a)(2)), must not
interfere with applicable requirements concerning attainment and
reasonable further progress or other CAA requirements (see CAA section
110(l)), and must not modify certain SIP control requirements in
nonattainment areas without ensuring equivalent or greater emissions
reductions (see CAA section 193). Generally, SIP rules must require
RACT for each category of sources covered by a CTG document as well as
each major source of VOCs or NOX in ozone nonattainment
areas classified as moderate or above (see CAA section 182(b)(2)). The
SCAQMD regulates an extreme ozone nonattainment area (i.e., the South
Coast Air Basin) and a severe ozone nonattainment area (i.e., Coachella
Valley) (see 40 CFR 81.305), so the District's rules must implement
RACT.
Guidance and policy documents that we use to evaluate
enforceability, revision/relaxation and rule stringency requirements
for the applicable criteria pollutants include the following:
1. ``Final Rule to Implement the 8-hour Ozone National Ambient Air
Quality Standard--Phase 2'' (70 FR 71612; November 29, 2005).
2. ``State Implementation Plans; General Preamble for the
Implementation of Title I of the Clean Air Act Amendments of 1990,''
57 FR 13498 (April 16, 1992); 57 FR 18070 (April 28, 1992).
3. ``Issues Relating to VOC Regulation Cutpoints, Deficiencies, and
Deviations,'' EPA, May 25, 1988 (the Bluebook, revised January 11,
1990).
4. ``Guidance Document for Correcting Common VOC & Other Rule
Deficiencies,'' EPA Region 9, August 21, 2001 (the Little Bluebook).
5. ``State Implementation Plans; Nitrogen Oxides Supplement to the
General Preamble; Clean Air Act Amendments of 1990 Implementation of
Title I; Proposed Rule,'' (the NOX Supplement), 57 FR
55620, November 25, 1992.
6. Memorandum from William T. Harnett to Regional Air Division
Directors, (May 18, 2006), ``RACT Qs & As--Reasonably Available
Control Technology (RACT) Questions and Answers''.
7. RACT SIPs, Letter dated March 9, 2006 from EPA Region IX (Andrew
Steckel) to CARB (Kurt Karperos) describing Region IX's
understanding of what constitutes a minimally acceptable RACT SIP.
8. RACT SIPs, Letter dated April 4, 2006 from EPA Region IX (Andrew
Steckel) to CARB (Kurt Karperos) listing EPA's current CTGs, ACTs,
and other documents which may help to establish RACT.
9. ``Implementation of the 2008 National Ambient Air Quality
Standards for Ozone: State Implementation Plan Requirements'' (80 FR
12264; March 6, 2015).
B. Does the RACT SIP submission meet the evaluation criteria?
The 2016 AQMP RACT SIP (submitted July 18, 2014) builds on the
District's previous RACT SIP demonstrations: The 2006 RACT SIP (73 FR
76947, December 18, 2008), the 2007 AQMP (77 FR 12674, March 1, 2012)
and the 2012 AQMP (79 FR 52526, September 3, 2014). The 2016 AQMP RACT
SIP concludes, after a review and evaluation of more than 30 rules
recently developed by other ozone nonattainment air districts, that
SCAQMD's current rules meet the EPA's criteria for RACT acceptability
and inclusion in the SIP for the 2008 8-hour ozone NAAQS. A RACT SIP
should consider requirements that apply to CTG source categories and
all major stationary sources of VOC or NOX emissions.
With regard to CTG and non-CTG source categories, based on its
research of the District's permit databases and telephone directories
for sources in the District for the 2007 AQMP, the 2012 AQMP, and the
2016 AQMP RACT SIP, the SCAQMD concluded that all identified sources
have applicable RACT rules. As such, we characterize the 2016 AQMP RACT
SIP as a certification-type of RACT SIP submittal. Because the
District's VOC and NOX rules apply equally in both the South
Coast and Coachella Valley, the District's certification in this regard
extends to both ozone nonattainment areas.
Where there are no existing sources covered by a particular CTG
document, states may, in lieu of adopting RACT requirements for those
sources, adopt negative declarations certifying that there are no such
sources in the relevant nonattainment area. The 2007 AQMP indicates
there are existing sources for each CTG document issued before 2006,
and the 2012 AQMP indicates there are existing sources for each CTG
document issued from 2006 to 2008. The EPA has not issued any CTGs
since 2008. The SCAQMD did not report any negative declarations in the
2016 AQMP RACT SIP as well.
However, subsequent to its 2016 AQMP RACT SIP submittal, the EPA
had several discussions with the SCAQMD and concluded there may be two
CTG categories where the District has no sources applicable to the
CTGs. For the Paper, Film and Foil coatings CTG, it appears from a
review of: The standard industrial codes (SIC) applicable to the CTG,
the CARB's emissions inventory, and discussion with the SCAQMD permit
engineer, that the SCAQMD has no paper coating sources with coating
lines exceeding the CTG's applicability threshold (EPA 453/R-07-003).
For the Surface Coating Operations at Shipbuilding and Repair
Facilities CTG (61 FR-44050, August 27, 1996 and EPA-453/R-94-032), the
SCAQMD indicates it only has one active title V shipyard facility that
is subject to Rule 1106, Marine Coating Operations. The one coating
category in Rule 1106 that exceeds the CTG's VOC content limit is
inorganic zinc and the District indicates inorganic zinc coating is not
used at the facility. Consequently, the EPA recommends that the SCAQMD
evaluate, and adopt where appropriate, negative declarations for these
two CTG categories. The EPA concurs that there are no other negative
declarations.
Based on our review and evaluation of the documentation provided by
the SCAQMD in the 2016 AQMP RACT SIP and earlier plans, we agree that
existing District rules approved in the SIP meet or are more stringent
than the corresponding CTG limits and exemption thresholds for each
category of VOC sources covered by a CTG document, and given that the
CTG documents represent presumptive RACT level of control, we conclude
that existing District rules require the implementation of RACT for
each category of VOC sources covered by a CTG document located in the
South Coast and Coachella Valley.
With respect to major stationary sources of VOC or NOX
emissions, the District provided supplemental information identifying
21 new major title V sources since its 2006 RACT SIP certification and
provided a list of equipment at these facilities that emit greater than
5 tpy. The District concluded that the equipment were covered by rules
that implement RACT. The District's efforts to identify all new major
sources appears to be thorough, and we agree that existing District
rules approved in the SIP require implementation of RACT for all major
non-CTG VOC sources in the South
[[Page 76549]]
Coast and Coachella Valley. We disagree that all major NOX
sources in the South Coast are subject to SIP-approved RACT rules or
RACT-equivalent programs as explained in the following section.
C. What are the RACT deficiencies?
Within the South Coast, major NOX sources are included
in SCAQMD's Regulation XX (``Regional Clean Air Incentives Market
(RECLAIM)'') program. The District adopted the RECLAIM program in 1993
to reduce emissions from the largest stationary sources of
NOX and oxides of sulfur (SOX) emissions through
a market-based trading program that establishes annual declining
NOX and SOX allocations (also called ``facility
caps'') and allows covered facilities to comply with their facility
caps by installing pollution control equipment, changing operations, or
purchasing RECLAIM trading credits (RTCs) from the RECLAIM market.
Section 40440 of the California Health and Safety Code (CH&SC) requires
the District to monitor advances in best available retrofit control
technology (BARCT) and periodically to reassess the overall facility
caps to ensure that the facility caps are equivalent, in the aggregate,
to BARCT emission levels imposed on affected sources.\1\ Facilities
subject to RECLAIM are exempted from a number of District prohibitory
rules that otherwise apply to sources of NOX and
SOX emissions in the South Coast.\2\ With certain
exceptions, facilities located in Coachella Valley are not included in
the RECLAIM program.
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\1\ BARCT is defined as ``an emission limitation that is based
on the maximum degree of reduction achievable taking into account
environmental, energy, and economic impacts by each class or
category of source.'' CH&SC section 40406. For the purposes of
comparison, the EPA defines RACT as the lowest emission limitation
that a particular source is capable of meeting by the application of
control technology that is reasonably available considering
technological and economic feasibility. 44 FR 53762 (September 17,
1979). As such, we generally find that BARCT level of control meets
or exceeds RACT level of control.
\2\ District Rule 2001 (``Applicability''), as amended May 6,
2005. Facilities in Coachella Valley are prohibited from entering
the RECLAIM program except as allowed under Rule 2001(i)(1)(I).
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Under longstanding EPA interpretation of the CAA, a market-based
cap and trade program may satisfy RACT requirements by ensuring that
the level of emission reductions resulting from implementation of the
program will be equal, in the aggregate, to those reductions expected
from the direct application of RACT on all affected sources within the
nonattainment area.\3\ The EPA approved the RECLAIM program into the
California SIP in June 1998 based in part on a conclusion that the
NOX emission caps in the program satisfied the RACT
requirements of CAA section 182(b)(2) and (f) for covered
NOX emission sources in the aggregate.\4\ In 2005 and 2010,
the District adopted revisions to the NOX RECLAIM program,
which the EPA approved in 2006 and 2011, respectively, based in part on
conclusions that the revisions continued to satisfy NOX RACT
requirements.\5\ We refer to the current NOX RECLAIM program
as approved into the SIP as the ``2010 RECLAIM program.''
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\3\ 59 FR 16690 (April 7, 1994) and EPA, ``Improving Air Quality
with Economic Incentive Programs,'' EPA-452/R-01-001 (January 2001),
at Section 16.7.
\4\ 61 FR 57834 (November 8, 1996) and 63 FR 32621 (June 15,
1998).
\5\ 71 FR 51120 (August 29, 2006) and 76 FR 50128 (August 12,
2011).
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The 2016 AQMP RACT SIP relies on the 2010 RECLAIM program to
satisfy the RACT requirements for major NOX sources in the
South Coast and Coachella Valley. However, based on new information
contained in SCAQMD's December 2015 Draft Final Staff Report (``2015
staff report'') revising Regulation XX, we find that additional
NOX reductions are now required to achieve RACT as evidenced
by the lack of controls on some refinery boiler units and the
District's proposal to reduce the NOX RECLAIM emissions
cap.\6\ A more detailed discussion about RECLAIM and the requirement
that the program ensures, in the aggregate, NOX emissions
reductions equivalent to RACT-level controls can be found in our
partial approval/disapproval of the South Coast Moderate Area Plan for
the 2006 PM2.5 NAAQS.\7\
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\6\ Draft Final Staff Report, Proposed Amendments to Regulation
XX Regional Clean Air Initiatives Market (RECLAIM) NOX
RECLAIM, December 4, 2015 https://www.aqmd.gov/docs/default-source/Agendas/Governing-Board/2015/2015-dec4-030.pdf?sfvrsn=9.
\7\ 81 FR 22025, 22027 and 22028 (April 14, 2016) discussing an
absence of a demonstration that the 2010 RECLAIM program ensures, in
the aggregate, NOX emission reductions equivalent to
RACT-level controls.
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Thus, based on our evaluation discussed above, we propose to
partially approve and partially disapprove the 2016 AQMP RACT SIP
certification because, while we find that existing SIP-approved
District rules implement RACT for all sources covered by a CTG document
and for all major non-CTG VOC sources in both the South Coast and
Coachella Valley, we also find that the 2010 RECLAIM program does not
achieve NOX emission reductions equal, in the aggregate, to
those reductions expected from the direct application of RACT on all
major NOX sources in the South Coast.\8\
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\8\ This finding does not apply to Coachella Valley because we
have determined that the two RECLAIM facilities located in Coachella
Valley are equipped with control technology that meets or exceeds
RACT level of control.
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We note that, on December 4, 2015, the SCAQMD adopted a new
NOX emissions cap that reflects a level of 2 ppmv
NOX for refinery boilers/heaters >40 MMBtu/hr indicating
that controls ``are either commercially available, achieved-in-practice
and/or can be designed to achieve 2 ppmv NOX in a cost-
effective manner.'' \9\ However, the amended RECLAIM program has not
been submitted to the EPA as a SIP revision and such a submittal would
need to include a demonstration of how the RECLAIM program, as amended,
provides for NOX emission reductions equal, in the
aggregate, to those reductions expected from the direct application of
RACT on all major NOX sources in the South Coast.
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\9\ Draft Final Staff Report, Proposed Amendments to Regulation
XX Regional Clean Air Initiatives Market (RECLAIM) NOX
RECLAIM, December 4, 2015, (page 92).
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D. The EPA's Recommendations To Further Improve the RACT SIP
Our TSD for the 2016 AQMP RACT SIP provides additional
recommendations for future rule improvements.
E. Proposed Action and Public Comment
For the reasons discussed above and explained more fully in our
TSD, the EPA proposes to partially approve and partially disapprove the
CARB's July 18, 2014 submittal of the SCAQMD 2016 AQMP RACT SIP as a
revision to the California SIP. Under CAA section 110(k)(3), we propose
to approve the 2016 AQMP RACT SIP, with the exception of major
NOX sources in the South Coast, as satisfying the RACT
requirements of CAA section 182(b)(2) and (f) for the South Coast and
the Coachella Valley ozone nonattainment areas.
Also under CAA section 110(k)(3), we propose to disapprove the 2016
AQMP RACT SIP as it pertains to major NOX sources in the
South Coast based on the EPA's finding that the 2010 RECLAIM program no
longer ensures NOX reductions equivalent to RACT-level
controls at each individual major NOX source in the South
Coast.
If finalized, the partial disapproval would trigger the 2-year
clock for the federal implementation plan (FIP) requirement under
section 110(c). In addition, final disapproval would trigger sanctions
under CAA section 179 and 40 CFR 52.31 unless the EPA approves a
subsequent SIP revision that corrects the RACT SIP deficiency within
[[Page 76550]]
18 months of the effective date of the final action. We note that our
partial disapproval of the District's Moderate Area Plan for the 2006
PM2.5 NAAQS, 81 FR 22025 (April 14, 2016), has already
started CAA sanction and FIP clocks for a NOX RACT
deficiency. Termination of those existing clocks by EPA approval of a
SIP revision submittal addressing the NOX RACT deficiency in
the Moderate Area Plan would also terminate sanction/FIP clocks
associated with final partial disapproval of the RACT SIP if the SIP
revision demonstrates compliance with both the Reasonably Available
Control Measure (RACM)/RACT requirement for PM2.5 and the
section 182 RACT requirement for ozone with respect to stationary
NOX sources in the South Coast.
We will accept comments from the public on the proposed partial
approval and partial disapproval for the next 30 days.
III. Statutory and Executive Order Reviews
Additional information about these statutes and Executive Orders
can be found at https://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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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 proposed 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, Nitrogen dioxide, Ozone,
Reporting and recordkeeping requirements, Oxides of sulfur, Volatile
organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: October 19, 2016.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2016-26613 Filed 11-2-16; 8:45 am]
BILLING CODE 6560-50-P