Air Plan Approval; Illinois; Emissions Reduction Market System Sunsetting, 42872-42876 [2019-17666]

Download as PDF 42872 Federal Register / Vol. 84, No. 160 / Monday, August 19, 2019 / Proposed Rules received will be addressed in a subsequent final rule based on this proposed rule. The EPA will not institute a second comment period. Any parties interested in commenting on this action should do so at this time. For additional information, see the direct final rule which is located in the rules section of this Federal Register. Dated: August 13, 2019. Kenley McQueen, Regional Administrator, Region 6. [FR Doc. 2019–17744 Filed 8–16–19; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R05–OAR–2019–0032; FRL–9998–46– Region 5] Air Plan Approval; Illinois; Emissions Reduction Market System Sunsetting Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve a State Implementation Plan (SIP) revision submitted by the Illinois Environmental Protection Agency (Illinois EPA) on January 11, 2019, concerning the state’s Emissions Reduction Market System (ERMS) program for the Chicago ozone nonattainment area (NAA) in Illinois. The revision sunsets the ERMS program and effectively removes from the SIP provisions in 35 Illinois Administrative Code (35 IAC) Part 205, as the ERMS program is no longer effective in providing any additional emissions reductions or environmental benefit. The submittal also includes a demonstration under section 110(l) of the Clean Air Act (CAA) that addresses emission impacts associated with the sunsetting of the program. DATES: Comments must be received on or before September 18, 2019. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R05– OAR–2019–0032 at https:// www.regulations.gov, or via email to blakley.pamela@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, EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be jspears on DSK3GMQ082PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 15:58 Aug 16, 2019 Jkt 247001 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. 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: Francisco J. Acevedo, Mobile Source Program Manager, Control Strategies Section, Air Programs Branch (AR–18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 886–6061, acevedo.francisco@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document whenever ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean EPA. This supplementary information section is arranged as follows: I. What is the background for this action? II. What changes have been made as part of the SIP revision? III. What is EPA’s analysis of the state’s submittal? IV. What action is EPA taking? V. Incorporation by reference VI. Statutory and Executive Order reviews I. What is the background for this action? The ERMS program was originally implemented in Illinois as a cap-andtrade program designed to reduce the emissions of volatile organic compounds (VOC 1) in the Chicago ozone NAA below the levels required by reasonably available control technology (RACT) and other regulations. The program was intended to achieve additional emission reductions needed for the post-1999 ozone Rate of Progress (ROP) plan for the now-revoked 1979 1hour ozone standard, while providing sources with more flexibility than is typically present in ‘‘command and control’’ regulations. As part of this 1 Illinois uses the term ‘‘Volatile Organic Material’’ (VOM) rather than VOC. The state’s definition of VOM is equivalent to EPA’s definition of VOC at 40 CFR 51.100. The two terms are interchangeable when discussing volatile organic emissions. For consistency with the CAA and EPA policy, this rulemaking uses the term VOC. PO 00000 Frm 00043 Fmt 4702 Sfmt 4702 program, major VOC sources, i.e., industrial facilities emitting at least 25 tons per year, including at least 10 tons between May and September, were required to participate. ERMS addresses the period between May 1st through September 30th, known as the seasonal allotment period or season, as ozone typically forms in the hotter, sunnier days of the year. The ERMS program is a cap-and-trade market system in which sources must hold allowances, known as Allotment Trading Units (ATUs), for their actual VOC emissions during the ERMS season. Every source in the ERMS program is issued ATUs each year based on its historical baseline emissions. An ATU is equivalent to 200 pounds of VOC. Sources with a surplus of ATUs can bank them for use in the following season or trade them to sources that exceeded their allotments. Under Illinois’ program, ATUs have a twoseason lifespan and if they are not used in the second season, they expire and are no longer allowed to be used to account for emissions at the source. Overall, VOC emissions are limited to the total number of available ATUs. To address stakeholder concerns that there may not have been enough ATUs available for purchase, the ERMS program also established an Alternative Compliance Market Account (ACMA), to which an amount equal to one percent of the annual amount of ATU allotments given to sources are deposited. These ATUs never expire while in the ACMA. Annual allotments of ATUs to sources are made in early April before the start of the season. Trades of ATUs for the season’s emissions must be made by December 31st and emissions compensation is performed by Illinois EPA in early January of every year. ATUs are removed from each source’s account in an amount equivalent to the source’s emissions during the prior season. Sources with an insufficient amount of ATUs in their account at that point must either buy them from the ACMA or borrow from the source’s allotment for the next year. The ERMS program was adopted by Illinois in 1997 and implemented in 2000 and approved as part of the Illinois SIP by EPA on October 15, 2001 (66 FR 52343). The program was amended in 2005 and those amendments were approved by EPA on July 7, 2008 (73 FR 38328). II. What changes have been made as part of the SIP revision? For areas that fail to meet the National Ambient Air Quality Standards (NAAQS) for ozone, states are required E:\FR\FM\19AUP1.SGM 19AUP1 Federal Register / Vol. 84, No. 160 / Monday, August 19, 2019 / Proposed Rules by the CAA to develop a SIP for attaining and maintaining the NAAQS. Section 182(c)(2)(B) of the CAA further requires that states must continue to reduce VOC emissions in those areas at rate of 9% over a subsequent three-year period. Illinois EPA relied on VOC emission reductions from the ERMS program as part of the post-1999 ozone ROP plan for the 2000–2002 milestone period as required under the nowrevoked 1979 1-hour ozone NAAQS. The ROP plan was approved into the SIP on November 11, 2001 (66 FR 56904). At that time, Illinois EPA estimated in its ROP plan that the ERMS program would achieve a VOM reduction of 12.6 tons per summer day. Those reductions represented nearly 7% of the total Chicago NAA VOC ROP plan emissions reductions needed for that milestone period. Illinois achieved all the reductions needed under the ROP plan for the Chicago NAA, but the state is now terminating the ERMS program, as it is no longer effective in providing environmental benefit. Since the implementation of ERMS in 2000, actual emissions from sources in ERMS have continued to decrease. These emissions reductions are due to various factors including the fact that some of the original affected sources have permanently shut down. New sources and emission units that have become subject to ERMS do not emit at the rate of these older, shut down sources. Additionally, as discussed below, several state and Federal regulations addressing VOC emissions have been promulgated since ERMS began and have led to a decline in both allowable and actual emissions and make it very unlikely that emissions will return to the previous levels from when ERMS was first implemented. With emissions being significantly lower than when the ERMS program began, there is a large surplus of ATUs. A high percentage of ATUs issued in a given year are no longer used to offset emissions and simply expire. As part of this SIP submittal, Illinois EPA is requesting EPA’s approval of the state’s action to sunset the ERMS program as of April 30, 2018 which would therefore allow EPA to remove 35 IAC Part 205 provisions from the SIP. Illinois EPA has also submitted an anti-backsliding analysis in accordance with section 110(l) of the CAA to demonstrate that the discontinuation of the ERMS program as of April 30, 2018 will not interfere with attainment or maintenance of any applicable NAAQS, RFP, or any other applicable requirement set forth in the CAA. III. What is EPA’s analysis of the state’s submittal? Our primary consideration for determining the approvability of the Illinois revisions to remove the ERMS program from the SIP is whether these revisions comply with section 110(l) of the CAA. Section 110(l) of the CAA provides that EPA cannot approve a SIP revision if that revision interferes with any applicable requirement regarding attainment and reasonable further progress or any other requirement established in the CAA. EPA can, however, approve a SIP revision that removes or modifies control measures in the SIP once the state makes a ‘‘noninterference’’ demonstration that such removal or modification will not 42873 interfere with attainment of the NAAQS, or any other CAA requirement. As part of Illinois’ section 110(l) analysis, Illinois EPA evaluated the impact of existing state and Federal VOC regulations that became effective after 1997 to demonstrate that shutting down the ERMS program will not cause an increase in emissions. Federally enforceable permit limits were also evaluated, as Illinois EPA has the authority to set such emission limitations in construction and operating permits, pursuant to 415 ILCS 5/9.1 of the Environmental Protection Act (the Act). The list of enforceable state regulations can be found in Table 1, and the list of Federal regulations can be found in Tables 2 and 3 below. State Regulations CAA Section 110 requires states to develop and implement plans to attain and maintain the NAAQS. In addition, the CAA contains provisions requiring states to update the SIP whenever there has been a revision to a state regulation within the plan, or when there is a new or revised NAAQS that may require a change to an attainment demonstration or maintenance plan. These plans and revisions are required to be submitted, reviewed, and approved by EPA. The Act provides the Illinois Pollution Control Board with the authority to develop rules and regulations necessary for meeting the NAAQS (415 ILCS 5/5). Table 1 lists all the RACT source categories that are included as regulations in Illinois’ SIP under Title 35 IAC Part 218 for the Chicago NAA that have further reduced emissions for these sources since the adoption of the ERMS program. jspears on DSK3GMQ082PROD with PROPOSALS TABLE 1—STATE VOC CONTROL PROGRAMS RACT Categories Rule citation (title 35 IAC part 218) Industrial cleaning solvents ................................................................................ Flat wood paneling coatings .............................................................................. Flexible packaging printing lines ........................................................................ Lithographic printing lines .................................................................................. Letterpress printing lines .................................................................................... Paper, film, and foil coatings ............................................................................. Large appliance coatings ................................................................................... Metal furniture coatings ..................................................................................... Miscellaneous metal and plastic parts coatings ................................................ Automobile and light-duty truck assembly coatings .......................................... Miscellaneous industrial adhesives ................................................................... Fiberglass boat manufacturing .......................................................................... 218 Subpart F ..................................................... 218.204(p) ........................................................... 218 Subpart H ..................................................... 218 Subpart H ..................................................... 218 Subpart H ..................................................... 218 Subpart H ..................................................... 218.204(h)(2) ....................................................... 218.204(g)(2) ....................................................... 218.204(q) ........................................................... 218.204(a)(2) ....................................................... 218 Subpart JJ .................................................... 218 Subpart JJ .................................................... New Source Performance Standards (NSPS) CAA Section 111 authorizes EPA to develop and update NSPS regulations that apply to specific categories of VerDate Sep<11>2014 15:58 Aug 16, 2019 Jkt 247001 stationary sources. NSPS applies to new, modified, and reconstructed affected sources. These standards may include equipment specifications, emission limitations, work practice PO 00000 Frm 00044 Fmt 4702 Sfmt 4702 Compliance date 1/1/2012 5/1/2012 8/1/2010 8/1/2010 8/1/2010 5/1/2011 5/1/2011 5/1/2011 5/1/2012 5/1/2012 5/1/2012 5/1/2012 standards, measurement methods, recordkeeping, and reporting requirements. Illinois EPA has delegated authority to implement and enforce E:\FR\FM\19AUP1.SGM 19AUP1 42874 Federal Register / Vol. 84, No. 160 / Monday, August 19, 2019 / Proposed Rules these standards under the Act (415 ILCS 5/9.1). Illinois EPA identified several NSPS regulations that apply to certain sources in ERMS, shown in Table 2, that became effective or have been updated since 1997, whose emissions reductions can be used to offset reductions from the ERMS program. TABLE 2—FEDERAL MEASURES—NSPS North American Industry Classification System (NAICS) Category Petroleum Refineries ................................................................ Coal Preparation and Processing Plants ................................. Surface Coating of Metal Furniture .......................................... Metal Coil Surface Coating ...................................................... Beverage Can Surface Coating ............................................... Bulk Gasoline Terminals .......................................................... Petroleum Refineries Equipment Leaks ................................... 324110 324199, 331110 337127 332812 332431, 332812 324110, 493190, 486910, 486110 324110 Onshore Natural Gas Plants—VOC Equip. Leaks .................. Nonmetallic Mineral Processing ............................................... Plastic Parts for Business Machines (surface coating) ........... Flexible Vinyl and Urethane Coating and Printing ................... Oil and Gas production, Transmission, and Distribution ......... 211112, 486110, 486210 327999 326112, 326113 322220 211112, 486110, 486210 National Emission Standards for Hazardous Air Pollutants (NESHAP) In accordance with Section 112 of the CAA, EPA established NESHAP standards to regulate specific categories of stationary sources that emit hazardous air pollutants. Some of the Code of Federal Regulation 40 40 40 40 40 40 CFR CFR CFR CFR CFR CFR 60 60 60 60 60 60 40 CFR 60 GGGa. 40 CFR 60 40 CFR 60 40 CFR 60 40 CFR 60 40 CFR 60 subpart subpart subpart subpart subpart subpart J–Ja ........ Y ............. EE ........... TT ........... WW ......... XX ........... Last amended 12/01/2015 10/08/2009 10/17/2000 10/17/2000 10/17/2000 12/19/2003 subpart GGG– 06/02/2008 subpart subpart subpart subpart subpart 08/16/2012 04/28/2009 10/17/2000 10/17/2000 06/03/2016 KKK ......... OOO ....... TTT ......... FFF ......... OOOO ..... VOC emissions and apply to certain sources in ERMS. Table 3 lists the NESHAP regulations that became effective or were amended after 1997 and whose emissions reductions can be used to offset reductions from the ERMS program. listed hazardous air pollutants are also VOCs. Illinois EPA has delegated authority to implement and enforce these standards under the Act (415 ILCS 5/9.1). Illinois EPA identified several NESHAP regulations that also control TABLE 3—FEDERAL MEASURES—NESHAP Category NAICS Benzene Waste Operations ..................................................... Synthetic Organic Chemical Manufacturing Industry ............... Gasoline Distribution Facilities ................................................. jspears on DSK3GMQ082PROD with PROPOSALS Pulp and Paper Industry (MACT I & III) ................................... Halogenated Solvent Cleaning ................................................. Group I Polymers and Resins .................................................. Petroleum Refineries ................................................................ Oil and Natural Gas Production Facilities ................................ Wood Furniture Manufacturing Operations .............................. Printing and Publishing Industry .............................................. Generic MACT I & II ................................................................. Pharmaceuticals Production Industry ....................................... Natural Gas Transmission and Storage Facilities ................... Group IV Polymers and Resins ............................................... Polyether Polyols Production ................................................... Petroleum Refineries ................................................................ Publicly Owned Treatment Works ............................................ Manufacturing of Nutritional Yeast ........................................... Plywood and Composite Wood Products ................................ Organic Liquids Distribution ..................................................... Miscellaneous Organic Chemical Manufacturing ..................... Solvent Extraction for Vegetable Oil Production ...................... Surface Coating of Automobiles and Light-Duty Trucks .......... Paper and Other Web Coating ................................................ Surface Coating of Metal Cans ................................................ Surface Coating of Miscellaneous Metal Parts and Products Surface Coating of Large Appliances ...................................... VerDate Sep<11>2014 15:58 Aug 16, 2019 Jkt 247001 PO 00000 Frm 00045 Code of Federal Regulation 324110, 325130, 324199 325120, 325130, 325211, 325412, 325510, 325520, 325910, 325998 324110, 424710, 486910, 493190 322212, 322219, 322220 331110, 331210, 331318, 332322, 332431, 332439, 332811, 332812, 332813, 333120, 336111, 337110, 339991 323111, 325212, 325412 324110 211112 337110, 337122 323111 325211 325412 211112, 486110, 486210 325212 325211 324110 221320 311999 321911, 321999 325211 325510, 325520, 325910, 325998 311221 336111, 336390, 323120 322212, 322219, 322220, 323111, 323120 332431, 332812, 332999 336111, 336390 333120, 332999, 333312 Fmt 4702 Sfmt 4702 Last amended 40 CFR 61 subpart FF ........... 40 CFR 63 subpart F, G, H, I 12/04/2003 12/21/2006 40 CFR 63 subpart R ............. 12/19/2003 40 CFR 63 subpart S ............. 40 CFR 63 subpart T .............. 09/11/2012 05/03/2007 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 U ............. CC ........... HH ........... JJ ............ KK ........... YY ........... GGG ....... HHH ........ JJJ .......... PPP ......... UUU ........ VVV ......... CCCC ..... DDDD ..... EEEE ...... FFFF ....... 04/21/2011 07/13/2016 08/16/2012 12/21/2011 12/21/2011 10/08/2014 04/21/2011 08/16/2012 03/27/2014 03/27/2014 12/01/2015 12/22/2008 05/21/2001 02/16/2006 04/23/2008 12/22/2008 40 CFR 63 subpart GGGG ..... 40 CFR 63 subpart IIII ............ 40 CFR 63 subpart JJJJ ......... 04/12/2001 04/24/2007 12/04/2002 40 CFR 63 subpart KKKK ...... 40 CFR 63 subpart MMMM .... 40 CFR 63 subpart NNNN ..... 11/13/2003 04/20/2006 07/23/2002 CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR CFR E:\FR\FM\19AUP1.SGM 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart subpart 19AUP1 Federal Register / Vol. 84, No. 160 / Monday, August 19, 2019 / Proposed Rules 42875 TABLE 3—FEDERAL MEASURES—NESHAP—Continued Category NAICS Printing, Coating, and Dyeing of Fabrics and Other Textiles .. Surface Coating of Plastic Parts and Products ....................... Surface Coating of Wood Building Products ........................... Surface Coating of Metal Furniture .......................................... Surface Coating of Metal Coil .................................................. Leather Finishing Operations ................................................... Cellulose Products Manufacturing ........................................... Reinforced Plastic Composites Production .............................. Coke Ovens: Pushing, Quenching, and Battery Stacks .......... Integrated Iron and Steel Manufacturing Facilities .................. Miscellaneous Coating Manufacturing ..................................... Asphalt Processing and Asphalt Roofing Manufacturing ......... jspears on DSK3GMQ082PROD with PROPOSALS Emissions Demonstration for Section 110(l) As part of Illinois EPA’s section 110(l) demonstration, the state analyzed the allowable ATUs under the ERMS program and compared them with the allowable VOC emissions under current federally enforceable state and Federal measures that have been implemented since 1997. The analysis shows that total allowable VOC emissions under the current federally enforceable state and Federal measures are lower than the total allowable emissions under ERMS. To track the emissions inventory in Illinois, the Illinois EPA uses a customdeveloped enterprise database system called the Integrated Comprehensive Environmental Management System (ICEMAN). Included in ICEMAN are subsystems that deal with permit tracking, fee billing, inspections, annual emissions reporting, emissions inventory, and ERMS. The emissions inventory contains all permitted sources along with previously permitted sources that are now subject to the Registration of Smaller Sources program. Emissions are maintained at the process level and are then summed to obtain the source level emissions. Each emission unit that is required to be reported on an ERMS seasonal report has an indicator selected in the database identifying it as such. This allows for easy review of the seasonal reports to ensure the owner or operator of the unit is reporting for the appropriate emission units. The emissions inventory is maintained by Illinois EPA’s Inventory and Data Support Unit of the Air Quality Planning Section. Immediately after a construction or operating permit is issued by the Permit Section, the issued permit and its application comes to the Inventory and Data Support Unit for updating of the emission units, emissions (especially allowable VerDate Sep<11>2014 15:58 Aug 16, 2019 Jkt 247001 Code of Federal Regulation 339991 336112 321911 337127 332812, 332813, 332322, 332999 316110 326121 325211, 325991, 335313 331110, 324199 331110 325510, 325520, 325910, 325998 324110, 324122 emissions), and other inventory data as necessary. As part of their section 110(l) demonstration, Illinois EPA compared each ERMS source’s allotment of ATUs to the allowable VOM emissions under the substitute measures as follows: Each entity that received ATUs for the 2016 season was identified. This included sources receiving allotments or Emissions Reductions Generators (ERGs), in addition to the ACMA account receiving ATUs from the allotment, shutdowns, or ERGs. The list was then expanded to include sources which did not receive an allotment but whose emissions were large enough to require obtaining ATUs to cover their emissions. These sources are primarily new participating sources. This established the collection of sources included in the demonstration that the proposed termination of the ERMS program is approvable as a SIP revision consistent with CAA Section 110(l). For calculating allowable emissions under current state and Federal measures, the sum of the annual allowable emissions from each individual emission process was obtained from ICEMAN and summed to the source level. These allowable emissions are based on permanent and federally enforceable state and Federal regulations or from federally enforceable construction permit conditions that limit VOC emissions. Currently under ERMS, sources are allowed to emit 101,654 ATUs, which equates to 10,165.40 tons/season. Annual allowable emissions from federally enforceable state and Federal measures for the same ERMS sources are 23,967.79 tons. Since ERMS is a seasonal program, the annual allowable emissions from substitution measures must be multiplied by 5/12th, which equals 9,986.58 tons/season. Thus, it is clearly shown that emissions allowed under currently implemented and PO 00000 Frm 00046 Fmt 4702 Sfmt 4702 Last amended 40 40 40 40 40 CFR CFR CFR CFR CFR 63 63 63 63 63 subpart subpart subpart subpart subpart OOOO ..... PPPP ...... QQQQ ..... RRRR ..... SSSS ...... 08/04/2004 04/19/2004 05/28/2003 05/23/2003 06/10/2002 40 40 40 40 40 40 CFR CFR CFR CFR CFR CFR 63 63 63 63 63 63 subpart subpart subpart subpart subpart subpart TTTT ....... UUUU ..... WWWW .. CCCCC ... FFFFF ..... HHHHH ... 02/27/2002 08/10/2005 08/25/2005 04/14/2003 05/20/2003 12/11/2003 40 CFR 63 subpart LLLLL ...... 04/20/2006 federally enforceable measures are 178.82 tons/season less than those allowed under the current ERMS rule on its own. Illinois EPA concludes, and EPA agrees, that there will be no increase in allowable VOC emissions due to the discontinuation of the ERMS program. Therefore, Illinois’ SIP revision demonstrates that the sunset of the ERMS program is approvable under Section 110(l) of the CAA, that Illinois will continue to meet its SIP obligations, and that the SIP revision will not interfere with the progress to meet and/ or maintain the ozone NAAQS in Chicago NAA. IV. What action is EPA taking? EPA is proposing to approve the revision to the Illinois SIP submitted by the Illinois EPA on January 11, 2019, because the sunset of Illinois’ ERMS program in the SIP meets all applicable requirements and would not interfere with reasonable further progress or attainment of the ozone NAAQS. As a result, EPA is proposing to remove the ERMS provisions (35 IAC Part 205) from the SIP. V. Incorporation by Reference In this document, EPA is proposing to amend regulatory text that includes incorporation by reference. As described in the proposed amendments to 40 CFR part 52 set forth below, EPA is proposing to remove provisions of the EPA-Approved Illinois Regulations and Statutes from the Illinois State Implementation Plan, which is incorporated by reference in accordance with the requirements of 1 CFR part 51. IV. Statutory and Executive Order Reviews Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. E:\FR\FM\19AUP1.SGM 19AUP1 jspears on DSK3GMQ082PROD with PROPOSALS 42876 Federal Register / Vol. 84, No. 160 / Monday, August 19, 2019 / Proposed Rules 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA’s role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action: • Is not a ‘‘significant regulatory action’’ subject to review by the Office of Management and Budget under Executive Orders 12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011); • Is not expected to be an Executive Order 13771 (82 FR 9339, February 2, 2017) regulatory action because this action is not significant under Executive Order 12866; • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.); • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.); • Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Public Law 104–4); • Does not have Federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999); • Is not an economically significant regulatory action based on health or safety risks subject to Executive Order 13045 (62 FR 19885, April 23, 1997); • Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); • Is not subject to requirements of Section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA; and • Does not provide EPA with the discretionary authority to address, as appropriate, disproportionate human health or environmental effects, using practicable and legally permissible methods, under Executive Order 12898 (59 FR 7629, February 16, 1994). In addition, the SIP is not approved to apply on any Indian reservation land or in any other area where EPA or an Indian tribe has demonstrated that a tribe has jurisdiction. In those areas of Indian country, the rule does not have tribal implications and will not impose substantial direct costs on tribal governments or preempt tribal law as VerDate Sep<11>2014 15:58 Aug 16, 2019 Jkt 247001 specified by Executive Order 13175 (65 FR 67249, November 9, 2000). List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Volatile organic compounds. Dated: August 6, 2019. Cathy Stepp, Regional Administrator, Region 5. For the reasons stated in the preamble, EPA proposes to amend 40 CFR part 52 as set forth below: PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS 1. The authority citation for part 52 continues to read as follows: ■ Authority: 42 U.S.C. 7401 et seq. Subpart O—Illinois 2. In § 52.720, the table in paragraph (c) is amended by removing the undesignated headings ‘‘Subchapter b: Alternative Reduction Program’’ ‘‘Part 205: Emissions Reduction Market System’’ and all the undesignated subheadings and entries up to and including ‘‘205.760’’. ■ [FR Doc. 2019–17666 Filed 8–16–19; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R05–OAR–2019–0267; FRL–9998–45– Region 5] Air Plan Approval; Indiana; Limited Maintenance Plan for 1997 Ozone NAAQS; Evansville, Fort Wayne, Greene County, Jackson County, Muncie, and Terre Haute Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve a submission from the State of Indiana as a state implementation plan (SIP) revision in according with the Clean Air Act (CAA). On April 25, 2019, the state submitted its 1997 8-hour ozone national ambient air quality standards (NAAQS or standard) Limited Maintenance Plan (LMP) for the following Indiana areas:] Evansville, Fort Wayne, Greene County, Jackson County, Muncie, and Terre Haute. EPA is proposing to approve the LMPs for these areas because they provide for the maintenance of the 1997 8-hour ozone SUMMARY: PO 00000 Frm 00047 Fmt 4702 Sfmt 4702 NAAQS through the end of the second 10-year portion of the maintenance period. The effect of this action would be to make federally enforceable certain commitments related to maintenance of the 1997 8-hour ozone NAAQS in these areas as part of the Indiana SIP. DATES: Comments must be received on or before September 18, 2019. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R05– OAR–2019–0267 at https:// www.regulations.gov, or via email to blakley.pamela@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, 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. 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: Michael Leslie, Environmental Engineer, Control Strategies Section, Air Programs Branch (AR–18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 353–6680, leslie.michael@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document, the terms ‘‘we’’, ‘‘us’’, and ‘‘our’’ refer to EPA. Table of Contents I. What action is EPA taking? II. What is the background for these actions? III. What is EPA’s Evaluation of Indiana’s SIP Submittals? 1. Attainment Emissions Inventory 2. Maintenance Demonstration 3. Monitoring Network and Verification of Continued Attainment 4. Contingency Plan IV. Transportation Conformity V. Proposed Action E:\FR\FM\19AUP1.SGM 19AUP1

Agencies

[Federal Register Volume 84, Number 160 (Monday, August 19, 2019)]
[Proposed Rules]
[Pages 42872-42876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17666]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2019-0032; FRL-9998-46-Region 5]


Air Plan Approval; Illinois; Emissions Reduction Market System 
Sunsetting

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a State Implementation Plan (SIP) revision submitted by the 
Illinois Environmental Protection Agency (Illinois EPA) on January 11, 
2019, concerning the state's Emissions Reduction Market System (ERMS) 
program for the Chicago ozone nonattainment area (NAA) in Illinois. The 
revision sunsets the ERMS program and effectively removes from the SIP 
provisions in 35 Illinois Administrative Code (35 IAC) Part 205, as the 
ERMS program is no longer effective in providing any additional 
emissions reductions or environmental benefit. The submittal also 
includes a demonstration under section 110(l) of the Clean Air Act 
(CAA) that addresses emission impacts associated with the sunsetting of 
the program.

DATES: Comments must be received on or before September 18, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2019-0032 at https://www.regulations.gov, or via email to 
[email protected]. For comments submitted at Regulations.gov, 
follow the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, 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. 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: Francisco J. Acevedo, Mobile Source 
Program Manager, Control Strategies Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 886-6061, 
[email protected].

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

    I. What is the background for this action?
    II. What changes have been made as part of the SIP revision?
    III. What is EPA's analysis of the state's submittal?
    IV. What action is EPA taking?
    V. Incorporation by reference
    VI. Statutory and Executive Order reviews

I. What is the background for this action?

    The ERMS program was originally implemented in Illinois as a cap-
and-trade program designed to reduce the emissions of volatile organic 
compounds (VOC \1\) in the Chicago ozone NAA below the levels required 
by reasonably available control technology (RACT) and other 
regulations. The program was intended to achieve additional emission 
reductions needed for the post-1999 ozone Rate of Progress (ROP) plan 
for the now-revoked 1979 1-hour ozone standard, while providing sources 
with more flexibility than is typically present in ``command and 
control'' regulations. As part of this program, major VOC sources, 
i.e., industrial facilities emitting at least 25 tons per year, 
including at least 10 tons between May and September, were required to 
participate. ERMS addresses the period between May 1st through 
September 30th, known as the seasonal allotment period or season, as 
ozone typically forms in the hotter, sunnier days of the year.
---------------------------------------------------------------------------

    \1\ Illinois uses the term ``Volatile Organic Material'' (VOM) 
rather than VOC. The state's definition of VOM is equivalent to 
EPA's definition of VOC at 40 CFR 51.100. The two terms are 
interchangeable when discussing volatile organic emissions. For 
consistency with the CAA and EPA policy, this rulemaking uses the 
term VOC.
---------------------------------------------------------------------------

    The ERMS program is a cap-and-trade market system in which sources 
must hold allowances, known as Allotment Trading Units (ATUs), for 
their actual VOC emissions during the ERMS season. Every source in the 
ERMS program is issued ATUs each year based on its historical baseline 
emissions. An ATU is equivalent to 200 pounds of VOC. Sources with a 
surplus of ATUs can bank them for use in the following season or trade 
them to sources that exceeded their allotments. Under Illinois' 
program, ATUs have a two-season lifespan and if they are not used in 
the second season, they expire and are no longer allowed to be used to 
account for emissions at the source. Overall, VOC emissions are limited 
to the total number of available ATUs. To address stakeholder concerns 
that there may not have been enough ATUs available for purchase, the 
ERMS program also established an Alternative Compliance Market Account 
(ACMA), to which an amount equal to one percent of the annual amount of 
ATU allotments given to sources are deposited. These ATUs never expire 
while in the ACMA.
    Annual allotments of ATUs to sources are made in early April before 
the start of the season. Trades of ATUs for the season's emissions must 
be made by December 31st and emissions compensation is performed by 
Illinois EPA in early January of every year. ATUs are removed from each 
source's account in an amount equivalent to the source's emissions 
during the prior season. Sources with an insufficient amount of ATUs in 
their account at that point must either buy them from the ACMA or 
borrow from the source's allotment for the next year.
    The ERMS program was adopted by Illinois in 1997 and implemented in 
2000 and approved as part of the Illinois SIP by EPA on October 15, 
2001 (66 FR 52343). The program was amended in 2005 and those 
amendments were approved by EPA on July 7, 2008 (73 FR 38328).

II. What changes have been made as part of the SIP revision?

    For areas that fail to meet the National Ambient Air Quality 
Standards (NAAQS) for ozone, states are required

[[Page 42873]]

by the CAA to develop a SIP for attaining and maintaining the NAAQS. 
Section 182(c)(2)(B) of the CAA further requires that states must 
continue to reduce VOC emissions in those areas at rate of 9% over a 
subsequent three-year period. Illinois EPA relied on VOC emission 
reductions from the ERMS program as part of the post-1999 ozone ROP 
plan for the 2000-2002 milestone period as required under the now-
revoked 1979 1-hour ozone NAAQS. The ROP plan was approved into the SIP 
on November 11, 2001 (66 FR 56904). At that time, Illinois EPA 
estimated in its ROP plan that the ERMS program would achieve a VOM 
reduction of 12.6 tons per summer day. Those reductions represented 
nearly 7% of the total Chicago NAA VOC ROP plan emissions reductions 
needed for that milestone period.
    Illinois achieved all the reductions needed under the ROP plan for 
the Chicago NAA, but the state is now terminating the ERMS program, as 
it is no longer effective in providing environmental benefit. Since the 
implementation of ERMS in 2000, actual emissions from sources in ERMS 
have continued to decrease. These emissions reductions are due to 
various factors including the fact that some of the original affected 
sources have permanently shut down. New sources and emission units that 
have become subject to ERMS do not emit at the rate of these older, 
shut down sources. Additionally, as discussed below, several state and 
Federal regulations addressing VOC emissions have been promulgated 
since ERMS began and have led to a decline in both allowable and actual 
emissions and make it very unlikely that emissions will return to the 
previous levels from when ERMS was first implemented. With emissions 
being significantly lower than when the ERMS program began, there is a 
large surplus of ATUs. A high percentage of ATUs issued in a given year 
are no longer used to offset emissions and simply expire. As part of 
this SIP submittal, Illinois EPA is requesting EPA's approval of the 
state's action to sunset the ERMS program as of April 30, 2018 which 
would therefore allow EPA to remove 35 IAC Part 205 provisions from the 
SIP. Illinois EPA has also submitted an anti-backsliding analysis in 
accordance with section 110(l) of the CAA to demonstrate that the 
discontinuation of the ERMS program as of April 30, 2018 will not 
interfere with attainment or maintenance of any applicable NAAQS, RFP, 
or any other applicable requirement set forth in the CAA.

III. What is EPA's analysis of the state's submittal?

    Our primary consideration for determining the approvability of the 
Illinois revisions to remove the ERMS program from the SIP is whether 
these revisions comply with section 110(l) of the CAA. Section 110(l) 
of the CAA provides that EPA cannot approve a SIP revision if that 
revision interferes with any applicable requirement regarding 
attainment and reasonable further progress or any other requirement 
established in the CAA. EPA can, however, approve a SIP revision that 
removes or modifies control measures in the SIP once the state makes a 
``noninterference'' demonstration that such removal or modification 
will not interfere with attainment of the NAAQS, or any other CAA 
requirement.
    As part of Illinois' section 110(l) analysis, Illinois EPA 
evaluated the impact of existing state and Federal VOC regulations that 
became effective after 1997 to demonstrate that shutting down the ERMS 
program will not cause an increase in emissions. Federally enforceable 
permit limits were also evaluated, as Illinois EPA has the authority to 
set such emission limitations in construction and operating permits, 
pursuant to 415 ILCS 5/9.1 of the Environmental Protection Act (the 
Act). The list of enforceable state regulations can be found in Table 
1, and the list of Federal regulations can be found in Tables 2 and 3 
below.

State Regulations

    CAA Section 110 requires states to develop and implement plans to 
attain and maintain the NAAQS. In addition, the CAA contains provisions 
requiring states to update the SIP whenever there has been a revision 
to a state regulation within the plan, or when there is a new or 
revised NAAQS that may require a change to an attainment demonstration 
or maintenance plan. These plans and revisions are required to be 
submitted, reviewed, and approved by EPA. The Act provides the Illinois 
Pollution Control Board with the authority to develop rules and 
regulations necessary for meeting the NAAQS (415 ILCS 5/5). Table 1 
lists all the RACT source categories that are included as regulations 
in Illinois' SIP under Title 35 IAC Part 218 for the Chicago NAA that 
have further reduced emissions for these sources since the adoption of 
the ERMS program.

                   Table 1--State VOC Control Programs
------------------------------------------------------------------------
                                    Rule citation (title    Compliance
          RACT Categories             35 IAC part 218)         date
------------------------------------------------------------------------
Industrial cleaning solvents......  218 Subpart F.......        1/1/2012
Flat wood paneling coatings.......  218.204(p)..........        5/1/2012
Flexible packaging printing lines.  218 Subpart H.......        8/1/2010
Lithographic printing lines.......  218 Subpart H.......        8/1/2010
Letterpress printing lines........  218 Subpart H.......        8/1/2010
Paper, film, and foil coatings....  218 Subpart H.......        5/1/2011
Large appliance coatings..........  218.204(h)(2).......        5/1/2011
Metal furniture coatings..........  218.204(g)(2).......        5/1/2011
Miscellaneous metal and plastic     218.204(q)..........        5/1/2012
 parts coatings.
Automobile and light-duty truck     218.204(a)(2).......        5/1/2012
 assembly coatings.
Miscellaneous industrial adhesives  218 Subpart JJ......        5/1/2012
Fiberglass boat manufacturing.....  218 Subpart JJ......        5/1/2012
------------------------------------------------------------------------

New Source Performance Standards (NSPS)

    CAA Section 111 authorizes EPA to develop and update NSPS 
regulations that apply to specific categories of stationary sources. 
NSPS applies to new, modified, and reconstructed affected sources. 
These standards may include equipment specifications, emission 
limitations, work practice standards, measurement methods, 
recordkeeping, and reporting requirements. Illinois EPA has delegated 
authority to implement and enforce

[[Page 42874]]

these standards under the Act (415 ILCS 5/9.1).
    Illinois EPA identified several NSPS regulations that apply to 
certain sources in ERMS, shown in Table 2, that became effective or 
have been updated since 1997, whose emissions reductions can be used to 
offset reductions from the ERMS program.

                                         Table 2--Federal Measures--NSPS
----------------------------------------------------------------------------------------------------------------
                                            North American Industry
                Category                     Classification System          Code of Federal        Last amended
                                                    (NAICS)                    Regulation
----------------------------------------------------------------------------------------------------------------
Petroleum Refineries...................                        324110  40 CFR 60 subpart J-Ja...      12/01/2015
Coal Preparation and Processing Plants.                324199, 331110  40 CFR 60 subpart Y......      10/08/2009
Surface Coating of Metal Furniture.....                        337127  40 CFR 60 subpart EE.....      10/17/2000
Metal Coil Surface Coating.............                        332812  40 CFR 60 subpart TT.....      10/17/2000
Beverage Can Surface Coating...........                332431, 332812  40 CFR 60 subpart WW.....      10/17/2000
Bulk Gasoline Terminals................       324110, 493190, 486910,  40 CFR 60 subpart XX.....      12/19/2003
                                                               486110
Petroleum Refineries Equipment Leaks...                        324110  40 CFR 60 subpart GGG-         06/02/2008
                                                                        GGGa.
Onshore Natural Gas Plants--VOC Equip.         211112, 486110, 486210  40 CFR 60 subpart KKK....      08/16/2012
 Leaks.
Nonmetallic Mineral Processing.........                        327999  40 CFR 60 subpart OOO....      04/28/2009
Plastic Parts for Business Machines                    326112, 326113  40 CFR 60 subpart TTT....      10/17/2000
 (surface coating).
Flexible Vinyl and Urethane Coating and                        322220  40 CFR 60 subpart FFF....      10/17/2000
 Printing.
Oil and Gas production, Transmission,          211112, 486110, 486210  40 CFR 60 subpart OOOO...      06/03/2016
 and Distribution.
----------------------------------------------------------------------------------------------------------------

National Emission Standards for Hazardous Air Pollutants (NESHAP)

    In accordance with Section 112 of the CAA, EPA established NESHAP 
standards to regulate specific categories of stationary sources that 
emit hazardous air pollutants. Some of the listed hazardous air 
pollutants are also VOCs. Illinois EPA has delegated authority to 
implement and enforce these standards under the Act (415 ILCS 5/9.1).
    Illinois EPA identified several NESHAP regulations that also 
control VOC emissions and apply to certain sources in ERMS. Table 3 
lists the NESHAP regulations that became effective or were amended 
after 1997 and whose emissions reductions can be used to offset 
reductions from the ERMS program.

                                        Table 3--Federal Measures--NESHAP
----------------------------------------------------------------------------------------------------------------
                                                                            Code of Federal
                Category                             NAICS                     Regulation          Last amended
----------------------------------------------------------------------------------------------------------------
Benzene Waste Operations...............        324110, 325130, 324199  40 CFR 61 subpart FF.....      12/04/2003
Synthetic Organic Chemical                    325120, 325130, 325211,  40 CFR 63 subpart F, G,        12/21/2006
 Manufacturing Industry.                      325412, 325510, 325520,   H, I.
                                                       325910, 325998
Gasoline Distribution Facilities.......       324110, 424710, 486910,  40 CFR 63 subpart R......      12/19/2003
                                                               493190
Pulp and Paper Industry (MACT I & III).        322212, 322219, 322220  40 CFR 63 subpart S......      09/11/2012
Halogenated Solvent Cleaning...........       331110, 331210, 331318,  40 CFR 63 subpart T......      05/03/2007
                                              332322, 332431, 332439,
                                              332811, 332812, 332813,
                                              333120, 336111, 337110,
                                                               339991
Group I Polymers and Resins............        323111, 325212, 325412  40 CFR 63 subpart U......      04/21/2011
Petroleum Refineries...................                        324110  40 CFR 63 subpart CC.....      07/13/2016
Oil and Natural Gas Production                                 211112  40 CFR 63 subpart HH.....      08/16/2012
 Facilities.
Wood Furniture Manufacturing Operations                337110, 337122  40 CFR 63 subpart JJ.....      12/21/2011
Printing and Publishing Industry.......                        323111  40 CFR 63 subpart KK.....      12/21/2011
Generic MACT I & II....................                        325211  40 CFR 63 subpart YY.....      10/08/2014
Pharmaceuticals Production Industry....                        325412  40 CFR 63 subpart GGG....      04/21/2011
Natural Gas Transmission and Storage           211112, 486110, 486210  40 CFR 63 subpart HHH....      08/16/2012
 Facilities.
Group IV Polymers and Resins...........                        325212  40 CFR 63 subpart JJJ....      03/27/2014
Polyether Polyols Production...........                        325211  40 CFR 63 subpart PPP....      03/27/2014
Petroleum Refineries...................                        324110  40 CFR 63 subpart UUU....      12/01/2015
Publicly Owned Treatment Works.........                        221320  40 CFR 63 subpart VVV....      12/22/2008
Manufacturing of Nutritional Yeast.....                        311999  40 CFR 63 subpart CCCC...      05/21/2001
Plywood and Composite Wood Products....                321911, 321999  40 CFR 63 subpart DDDD...      02/16/2006
Organic Liquids Distribution...........                        325211  40 CFR 63 subpart EEEE...      04/23/2008
Miscellaneous Organic Chemical                325510, 325520, 325910,  40 CFR 63 subpart FFFF...      12/22/2008
 Manufacturing.                                                325998
Solvent Extraction for Vegetable Oil                           311221  40 CFR 63 subpart GGGG...      04/12/2001
 Production.
Surface Coating of Automobiles and             336111, 336390, 323120  40 CFR 63 subpart IIII...      04/24/2007
 Light-Duty Trucks.
Paper and Other Web Coating............       322212, 322219, 322220,  40 CFR 63 subpart JJJJ...      12/04/2002
                                                       323111, 323120
Surface Coating of Metal Cans..........        332431, 332812, 332999  40 CFR 63 subpart KKKK...      11/13/2003
Surface Coating of Miscellaneous Metal                 336111, 336390  40 CFR 63 subpart MMMM...      04/20/2006
 Parts and Products.
Surface Coating of Large Appliances....        333120, 332999, 333312  40 CFR 63 subpart NNNN...      07/23/2002

[[Page 42875]]

 
Printing, Coating, and Dyeing of                               339991  40 CFR 63 subpart OOOO...      08/04/2004
 Fabrics and Other Textiles.
Surface Coating of Plastic Parts and                           336112  40 CFR 63 subpart PPPP...      04/19/2004
 Products.
Surface Coating of Wood Building                               321911  40 CFR 63 subpart QQQQ...      05/28/2003
 Products.
Surface Coating of Metal Furniture.....                        337127  40 CFR 63 subpart RRRR...      05/23/2003
Surface Coating of Metal Coil..........       332812, 332813, 332322,  40 CFR 63 subpart SSSS...      06/10/2002
                                                               332999
Leather Finishing Operations...........                        316110  40 CFR 63 subpart TTTT...      02/27/2002
Cellulose Products Manufacturing.......                        326121  40 CFR 63 subpart UUUU...      08/10/2005
Reinforced Plastic Composites                  325211, 325991, 335313  40 CFR 63 subpart WWWW...      08/25/2005
 Production.
Coke Ovens: Pushing, Quenching, and                    331110, 324199  40 CFR 63 subpart CCCCC..      04/14/2003
 Battery Stacks.
Integrated Iron and Steel Manufacturing                        331110  40 CFR 63 subpart FFFFF..      05/20/2003
 Facilities.
Miscellaneous Coating Manufacturing....       325510, 325520, 325910,  40 CFR 63 subpart HHHHH..      12/11/2003
                                                               325998
Asphalt Processing and Asphalt Roofing                 324110, 324122  40 CFR 63 subpart LLLLL..      04/20/2006
 Manufacturing.
----------------------------------------------------------------------------------------------------------------

Emissions Demonstration for Section 110(l)

    As part of Illinois EPA's section 110(l) demonstration, the state 
analyzed the allowable ATUs under the ERMS program and compared them 
with the allowable VOC emissions under current federally enforceable 
state and Federal measures that have been implemented since 1997. The 
analysis shows that total allowable VOC emissions under the current 
federally enforceable state and Federal measures are lower than the 
total allowable emissions under ERMS.
    To track the emissions inventory in Illinois, the Illinois EPA uses 
a custom-developed enterprise database system called the Integrated 
Comprehensive Environmental Management System (ICEMAN). Included in 
ICEMAN are subsystems that deal with permit tracking, fee billing, 
inspections, annual emissions reporting, emissions inventory, and ERMS.
    The emissions inventory contains all permitted sources along with 
previously permitted sources that are now subject to the Registration 
of Smaller Sources program. Emissions are maintained at the process 
level and are then summed to obtain the source level emissions. Each 
emission unit that is required to be reported on an ERMS seasonal 
report has an indicator selected in the database identifying it as 
such. This allows for easy review of the seasonal reports to ensure the 
owner or operator of the unit is reporting for the appropriate emission 
units.
    The emissions inventory is maintained by Illinois EPA's Inventory 
and Data Support Unit of the Air Quality Planning Section. Immediately 
after a construction or operating permit is issued by the Permit 
Section, the issued permit and its application comes to the Inventory 
and Data Support Unit for updating of the emission units, emissions 
(especially allowable emissions), and other inventory data as 
necessary.
    As part of their section 110(l) demonstration, Illinois EPA 
compared each ERMS source's allotment of ATUs to the allowable VOM 
emissions under the substitute measures as follows:
    Each entity that received ATUs for the 2016 season was identified. 
This included sources receiving allotments or Emissions Reductions 
Generators (ERGs), in addition to the ACMA account receiving ATUs from 
the allotment, shutdowns, or ERGs. The list was then expanded to 
include sources which did not receive an allotment but whose emissions 
were large enough to require obtaining ATUs to cover their emissions. 
These sources are primarily new participating sources. This established 
the collection of sources included in the demonstration that the 
proposed termination of the ERMS program is approvable as a SIP 
revision consistent with CAA Section 110(l).
    For calculating allowable emissions under current state and Federal 
measures, the sum of the annual allowable emissions from each 
individual emission process was obtained from ICEMAN and summed to the 
source level. These allowable emissions are based on permanent and 
federally enforceable state and Federal regulations or from federally 
enforceable construction permit conditions that limit VOC emissions.
    Currently under ERMS, sources are allowed to emit 101,654 ATUs, 
which equates to 10,165.40 tons/season. Annual allowable emissions from 
federally enforceable state and Federal measures for the same ERMS 
sources are 23,967.79 tons. Since ERMS is a seasonal program, the 
annual allowable emissions from substitution measures must be 
multiplied by 5/12th, which equals 9,986.58 tons/season. Thus, it is 
clearly shown that emissions allowed under currently implemented and 
federally enforceable measures are 178.82 tons/season less than those 
allowed under the current ERMS rule on its own. Illinois EPA concludes, 
and EPA agrees, that there will be no increase in allowable VOC 
emissions due to the discontinuation of the ERMS program.
    Therefore, Illinois' SIP revision demonstrates that the sunset of 
the ERMS program is approvable under Section 110(l) of the CAA, that 
Illinois will continue to meet its SIP obligations, and that the SIP 
revision will not interfere with the progress to meet and/or maintain 
the ozone NAAQS in Chicago NAA.

IV. What action is EPA taking?

    EPA is proposing to approve the revision to the Illinois SIP 
submitted by the Illinois EPA on January 11, 2019, because the sunset 
of Illinois' ERMS program in the SIP meets all applicable requirements 
and would not interfere with reasonable further progress or attainment 
of the ozone NAAQS. As a result, EPA is proposing to remove the ERMS 
provisions (35 IAC Part 205) from the SIP.

V. Incorporation by Reference

    In this document, EPA is proposing to amend regulatory text that 
includes incorporation by reference. As described in the proposed 
amendments to 40 CFR part 52 set forth below, EPA is proposing to 
remove provisions of the EPA-Approved Illinois Regulations and Statutes 
from the Illinois State Implementation Plan, which is incorporated by 
reference in accordance with the requirements of 1 CFR part 51.

IV. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations.

[[Page 42876]]

42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, 
EPA's role is to approve state choices, provided that they meet the 
criteria of the CAA. Accordingly, this action merely approves state law 
as meeting Federal requirements and does not impose additional 
requirements beyond those imposed by state law. For that reason, this 
action:
     Is not a ``significant regulatory action'' subject to 
review by the Office of Management and Budget under Executive Orders 
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 
2011);
     Is not expected to be an Executive Order 13771 (82 FR 
9339, February 2, 2017) regulatory action because this action is not 
significant under Executive Order 12866;
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Public Law 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Volatile organic compounds.

    Dated: August 6, 2019.
Cathy Stepp,
Regional Administrator, Region 5.
    For the reasons stated in the preamble, EPA proposes to amend 40 
CFR part 52 as set forth below:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

Subpart O--Illinois

0
2. In Sec.  52.720, the table in paragraph (c) is amended by removing 
the undesignated headings ``Subchapter b: Alternative Reduction 
Program'' ``Part 205: Emissions Reduction Market System'' and all the 
undesignated subheadings and entries up to and including ``205.760''.
[FR Doc. 2019-17666 Filed 8-16-19; 8:45 am]
 BILLING CODE 6560-50-P
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