Air Plan Approval; NC; Miscellaneous NSR Revisions and Updates; Updates to References to Appendix W Modeling Guideline, 61548-61555 [2022-21655]
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules
recordkeeping requirements, Schools,
Veterans, Vocational education.
Signing Authority
Denis McDonough, Secretary of
Veterans Affairs, approved this
document on September 7, 2022, and
authorized the undersigned to sign and
submit the document to the Office of the
Federal Register for publication
electronically as an official document of
the Department of Veterans Affairs.
Jeffrey M. Martin,
Assistant Director, Office of Regulation Policy
& Management, Office of General Counsel,
Department of Veterans Affairs.
For the reasons stated in the
preamble, the Department of Veterans
Affairs proposes to amend 38 CFR part
21 as set forth below:
PART 21—VETERAN READINESS AND
EMPLOYMENT AND EDUCATION
Subpart D—Administration of
Educational Assistance Programs
1. The authority citation for part 21,
subpart D continues to read as follows:
■
Authority: 10 U.S.C. 2141 note, ch. 1606;
38 U.S.C. 501(a), chs. 30, 32, 33, 34, 35, 36,
and as noted in specific sections.
2. Amend § 21.4201 by revising
paragraphs (e)(2), (f)(1) introductory
text, (f)(2)(ii), and (h) to read as follows:
■
§ 21.4201 Restrictions on enrollment;
percentage of students receiving financial
support.
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(e) * * *
(2) Assigning students to each part of
the ratio. In accordance with the
provisions of paragraph (a) of this
section, non-supported students are
those students enrolled in the course
who are having none of their tuition,
fees or other charges paid for them by
the educational institution, or by VA
under title 38, U.S.C., or under title 10,
U.S.C., while supported students are
those students enrolled in the course
who are having all or part of their
tuition, fees or other charges paid for
them by the educational institution, or
by VA under title 38, U.S.C., or under
title 10, U.S.C.
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(f) * * * (1) Schools must submit to
VA all calculations (those needed to
support the exemption found in
paragraph (c)(4) of this section as well
as those made under paragraph (e)(3) of
this section). If the school is organized
on a term, quarter, or semester basis, it
shall make that submission no later than
30 days after the beginning of the first
term for which the school wants the
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exemption to apply. If the school is
organized on a non-standard term basis,
it shall make its submission no later
than 30 days after the beginning of the
first non-standard term for which the
school wishes the exemption to apply.
A school having received an exemption
found in paragraph (c)(4) of this section
shall not be required to certify that 85
percent or less of the total student
enrollment in any course is receiving
Department of Veterans Affairs
assistance:
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(2) * * *
(ii) If a school is organized on a nonstandard term basis, reports must be
received by the Department of Veterans
Affairs no later than 30 days after the
end of each non-standard term.
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(h) Waivers. Schools which desire a
waiver of the provisions of paragraph (a)
of this section for a course where the
number of full-time equivalent
supported students receiving VA
education benefits equals or exceeds 85
percent of the total full-time equivalent
enrollment in the course may apply for
a waiver to the Director, Education
Service. When applying, a school must
submit sufficient information to allow
the Director, Education Service, to judge
the merits of the request against the
criteria shown in this paragraph. This
information and any other pertinent
information available to VA shall be
considered in relation to these criteria:
(1) Availability of comparable
alternative educational facilities
effectively open to veterans in the
vicinity of the school requesting a
waiver.
(2) General effectiveness of the
school’s program in providing
educational and employment
opportunities to the particular veteran
population it serves. Factors to be
considered should include, but are not
limited to: percentage of veteranstudents completing the entire course,
graduate employment statistics,
graduate salary statistics, satisfaction of
Department of Education requirements
regarding gainful employment (where
applicable), other Department of
Education metrics (such as student loan
default rate), student complaints,
industry endorsements, participation in
and compliance with the Principles of
Excellence program, established by
Executive Order 13607 (where
applicable), etc.
(3) Whether the educational
institution’s aid program appears to be
consistent with or appears to undermine
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the 85/15 rule’s tuition and fee costs
market validation mechanism.
[FR Doc. 2022–22107 Filed 10–11–22; 8:45 am]
BILLING CODE 8320–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R04–OAR–2022–0782; FRL–10215–
01–R4]
Air Plan Approval; NC; Miscellaneous
NSR Revisions and Updates; Updates
to References to Appendix W Modeling
Guideline
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 North Carolina
on April 13, 2021. Specifically, EPA is
proposing to approve updates to the
incorporation by reference of federal
new source review (NSR) regulations
and federal guidelines on air quality
modeling in the North Carolina SIP.
Based on its proposal to approve this
revision, EPA is also proposing to
convert the previous conditional
approval regarding infrastructure SIP
prevention of significant deterioration
(PSD) elements for the 2015 Ozone
National Ambient Air Quality Standard
(NAAQS) for North Carolina to a full
approval. EPA is also proposing to
approve additional updates to North
Carolina’s NSR regulations to better
align them with the federal rules. EPA
is proposing to approve these changes
pursuant to the Clean Air Act (CAA or
Act).
DATES: Comments must be received on
or before November 14, 2022.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R04–
OAR–2022–0782 at
www.regulations.gov. Follow the online
instructions for submitting comments.
Once submitted, comments cannot be
edited or removed from Regulations.gov.
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
SUMMARY:
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules
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, the full
EPA public comment policy,
information about CBI or multimedia
submissions, and general guidance on
making effective comments, please visit
www2.epa.gov/dockets/commentingepa-dockets.
FOR FURTHER INFORMATION CONTACT:
Josue Ortiz Borrero, Air Regulatory
Management Section, Air Planning and
Implementation Branch, Air and
Radiation Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth
Street SW, Atlanta, Georgia 30303–8960.
The telephone number is (404) 562–
8085. Mr. Ortiz Borrero can also be
reached via electronic mail at staff email
ortizborrero.josue@epa.gov.
SUPPLEMENTARY INFORMATION:
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I. Background
On October 1, 2015, EPA promulgated
a revised primary and secondary
NAAQS for ozone, revising the 8-hour
ozone standards from 0.075 parts per
million (ppm) to a new more protective
level of 0.070 ppm. See 80 FR 65292
(October 26, 2015). Pursuant to section
110(a)(1) of the CAA, states are required
to submit SIP revisions meeting the
applicable requirements of section
110(a)(2) within three years after
promulgation of a new or revised
NAAQS or within such shorter period
as EPA may prescribe. Section 110(a)(2)
requires states to address basic SIP
elements such as requirements for
monitoring, basic program
requirements, and legal authority that
are designed to assure attainment and
maintenance of the NAAQS. This
particular type of SIP is commonly
referred to as an ‘‘infrastructure SIP or
iSIP.’’ States were required to submit
such SIP revisions for the 2015 8-hour
ozone NAAQS to EPA no later than
October 1, 2018.1
On September 27, 2018, North
Carolina met the requirement to submit
an iSIP for the 2015 8-hour ozone
NAAQS by the October 1, 2018,
deadline. Through previous
rulemakings, EPA approved most of the
infrastructure SIP elements for the 2015
Ozone NAAQS for North Carolina.2
1 In infrastructure SIP submissions, states
generally certify evidence of compliance with
sections 110(a)(1) and (2) of the CAA through a
combination of state regulations and statutes, some
of which have been incorporated into the SIP. In
addition, certain federally-approved, non-SIP
regulations may also be appropriate for
demonstrating compliance with sections 110(a)(1)
and (2).
2 EPA approved most elements for North
Carolina, except for the Interstate Transport
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However, regarding the PSD elements of
section 110(a)(2)(C), (D)(i)(II) (prong 3),
and (J) (herein referred to as element C,
Prong 3, and element J, respectively),
EPA conditionally approved 3 these
portions of North Carolina’s iSIP
submission because of outdated
references to the federal guideline on air
quality modeling found in Appendix W
of 40 CFR part 51.4
For elements C and J to be approved
for PSD, a state needs to demonstrate
that its SIP meets the PSD-related
infrastructure requirements of these
sections. These requirements are met if
the state’s implementation plan
includes a PSD program that meets
current federal requirements. Element
D(i)(II) (prong 3) is also approvable
when a state’s implementation plan
contains a fully approved, up-to-date
PSD program. EPA’s PSD regulations at
40 CFR 51.166(l) require that modeling
be conducted in accordance with
Appendix W, Guideline on Air Quality
Models. EPA promulgated the most
current version of Appendix W on
January 17, 2017 (82 FR 5182).
Therefore, in order to approve the iSIP
PSD elements for the 2015 8-hour ozone
NAAQS, PSD regulations in SIPs are
required to reference the most current
version of Appendix W.
As discussed in the conditional
approval for the 2015 ozone iSIP PSD
elements, North Carolina’s SIP contains
outdated references to Appendix W and
the State committed to update the
outdated references and submit a SIP
revision within one year of EPA’s final
rule conditionally approving these PSD
elements. Accordingly, North Carolina
was required to make its submission by
April 15, 2021. North Carolina met its
commitment by submitting SIP
revisions to correct the deficiencies on
or before the deadline. Through this
Notice of Proposed Rulemaking
(NPRM), EPA is now proposing to
approve the changes to the North
Carolina SIP and to convert the
conditional approval to full approvals
for North Carolina, regarding element C,
Prong 3, and element J, for the 2015 8hour ozone NAAQS infrastructure SIP.
provisions (Prongs 1 & 2) and the PSD provisions
(elements C, Prong 3, and J), on March 11, 2020. See
85 FR 14147. EPA approved the interstate transport
provisions (Prongs 1 & 2) for North Carolina on
December 2, 2021. See 86 FR 68413.
3 Under CAA section 110(k)(4), EPA may
conditionally approve a SIP revision based on a
commitment from a state to adopt specific
enforceable measures by a date certain, but not later
than one year from the date of approval. If the state
fails to meet the commitment within one year of the
final conditional approval, the conditional approval
will be treated as a disapproval and EPA will issue
a finding of disapproval.
4 See 85 FR 20836 (April 15, 2020).
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61549
II. What is EPA’s approach to the
review of infrastructure SIP
submissions?
As discussed above, whenever EPA
promulgates a new or revised NAAQS,
CAA section 110(a)(1) requires states to
submit infrastructure SIPs that meet the
various requirements of CAA section
110(a)(2), as applicable. Due to
ambiguity in some of the language of
CAA section 110(a)(2), EPA believes
that it is appropriate to interpret these
provisions in the specific context of
acting on infrastructure SIP
submissions. EPA has previously
provided comprehensive guidance on
the application of these provisions
through a guidance document for
infrastructure SIP submissions and
through regional actions on
infrastructure submissions.5 Unless
otherwise noted below, EPA is
following that existing approach in
acting on this submission. In addition,
in the context of acting on such
infrastructure submissions, EPA
evaluates the submitting state’s
implementation plan for facial
compliance with statutory and
regulatory requirements, not for the
state’s implementation of its SIP.6 EPA
has other authority to address any issues
concerning a state’s implementation of
the rules, regulations, consent orders,
etc. that comprise its SIP.
III. EPA’s Analysis of North Carolina’s
April 13, 2021, Submittal
On April 13, 2021, North Carolina
submitted a SIP revision to address the
readoption of several state air quality
rules.7 Part of that submission contains
updates to the State’s major NSR
regulations, including updates to the
version of 40 CFR part 51, Appendix W,
incorporated by reference into North
Carolina’s PSD rules in order to meet
the PSD Infrastructure SIP requirements
for the 2015 8-hour ozone NAAQS and
to satisfy the April 15, 2020, conditional
approval of element C, Prong 3, and
5 EPA explains and elaborates on these
ambiguities and its approach to address them in its
September 13, 2013 Infrastructure SIP Guidance
(available at https://www3.epa.gov/airquality/
urbanair/sipstatus/docs/Guidance_on_
Infrastructure_SIP_Elements_Multipollutant_
FINAL_Sept_2013.pdf), as well as in numerous
agency actions, including EPA’s prior action on the
North Carolina infrastructure SIP to address the
2010 Nitrogen Dioxide NAAQS. See 81 FR 47115
(July 20, 2016).
6 See Mont. Envtl. Info. Ctr. v. Thomas, 902 F.3d
971 (9th Cir. 2018).
7 The April 13, 2021, submission included many
North Carolina rules which the State requested EPA
approve into the SIP. This NPRM only proposes
approval of changes to 15A NCAC 02D .0530 and
.0544. All other portions of the April 13, 2021,
submission will be or have been addressed in
separate rulemakings.
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules
element J of North Carolina’s 2015 8hour ozone NAAQS infrastructure SIP.
Specifically, the April 13, 2021, SIP
revision makes changes to North
Carolina Rules 15A NCAC 02D .0530,
Prevention of Significant Deterioration,
and .0544, Prevention of Significant
Deterioration Requirements for
Greenhouse Gases.
As explained in Sections III.A and
III.B of this preamble, EPA is proposing
to approve the changes to these
regulations into the North Carolina SIP,
and to convert the conditional approval
of element C, Prong 3, and element J, of
North Carolina’s 2015 8-hour ozone
NAAQS infrastructure SIP to a full
approval.
A. 15A NCAC 02D .0530, Prevention of
Significant Deterioration
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1. Revisions to the North Carolina PSD
Rule
The proposed changes to Rule 02D
.0530 in North Carolina’s April 13,
2021, submission include changes to
better align with language found in the
federal PSD regulations at 40 CFR
51.166, as well updating the
incorporation by reference date to the
federal rule.
In paragraph .0530(a), North Carolina
moves the applicability provisions that
clarify the rule’s connection to the
federal PSD rules found at 40 CFR
51.166, from paragraph .0530(g) to
.0530(a). There are no substantive
changes to the language of the
paragraph.
In paragraph .0530(b), the State
rewords prefatory language for existing
exceptions to the definitions
incorporated from the federal PSD rules
but does not change the meaning of the
provision. Next, in subparagraph
.0530(b)(4), North Carolina deletes
‘‘ammonia’’ from the PSD provision
stating that volatile organic compounds
and ammonia are not significant
precursors to fine particulate matter
(PM2.5). Removing ammonia from the
list of constituents that are not
significant precursors to PM2.5 aligns
with the PSD definition of ‘‘regulated
NSR pollutant,’’ at 40 CFR
51.166(b)(49)(i)(b), which the State
already incorporates by reference. EPA
does not specifically address ammonia
in the PSD regulations, so the SIP
revision does not change how ammonia
is treated with respect to attainment or
unclassifiable areas. The SIP revision
also makes other minor changes to
subparagraph (b)(4) such as changing
formatting and minor wording changes.
The revision adds subparagraph
.0530(b)(5) to specify different language
from 40 CFR 51.166(b)(49)(i)(a). The
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federal regulation states that as of
January 1, 2011, condensable coarse PM
(PM10) and PM2.5 ‘‘shall be accounted
for in applicability determinations and
in establishing emissions limitations for
PM2.5 and PM10 in PSD permits.’’ The
version of subparagraph .0530(b)(5) in
the SIP revision provides instead that,
‘‘starting January 1, 2011, in addition to
PM10 and PM2.5, for particulate matter
(PM), condensable particulate matter
shall be accounted for in applicability
determinations and in establishing
emissions limitations for each of these
regulated NSR pollutants in PSD
permits.’’ In this case, NCDAQ
requirements are more stringent by
requiring that total PM be accounted for,
including total condensable PM,
whereas the federal provisions only
account for condensable PM10 and
PM2.5. See 77 FR 65107 (October 25,
2012).
Next, North Carolina clarifies the
compliance requirements for major
stationary sources and major
modifications at paragraph .0530(g).
Paragraph .0530(g) previously stated
that major sources and major
modifications had to comply with
requirements in 40 CFR 51.166(a)(7) and
(i) and in 40 CFR 51.166(j) through (o)
and (w). North Carolina modifies this
sentence to read that these projects shall
comply with requirements in
51.166(a)(7) and (i) and in 51.166(j)
through (r) and (w), which now includes
paragraphs (p)–(r).
The North Carolina SIP already
covered the provisions of subparagraph
51.166(p)(1), (p)(3), and (p)(4)–(7)
regarding impacts to federal Class I
areas at paragraph .0530(q). The existing
SIP does not include a reference to
subparagraph 51.166(p)(2) because this
provision is a general statement
affirming the federal land manager’s
responsibility to manage Class I areas
and to ‘‘consider, in consultation with
the Administrator, whether a proposed
source or modification would have an
adverse impact on’’ air quality related
values such as visibility. States are not
required to include this provision in
SIPs. This provision merely describes
responsibilities of federal land managers
and is true whether or not North
Carolina specifically includes it in the
SIP. However, the SIP would now
include subparagraph (p)(2) with the
update to paragraph .0530(g).
Additionally, 40 CFR 51.166(r)(1) is
already covered by paragraph .0530(s),
and 40 CFR 51.166(r)(2) is already
covered by paragraph .0530(k).
Moreover, paragraph .0530(u) covered
the requirements of 40 CFR 51.166(r)(6)
and (r)(7) in a different, but more
stringent manner, and this paragraph
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continues to outline different and more
stringent requirements than the federal
minimum requirements. Paragraph
.0530(u) is discussed in more detail
below. Finally, paragraph .0530(r)
provides procedures and requirements
for processing permit applications and
covers 40 CFR 51.166(q) and continues
to do so.
Next, North Carolina revises its
monitoring and recordkeeping
requirements in subparagraph .0530(u)
for projects which do not trigger PSD
requirements, but which make use of
‘‘projected actual emissions’’ for
determining applicability. For sources
that rely on ‘‘projected actual
emissions’’ to determine PSD
applicably, the federal NSR rules
require recordkeeping and reporting for
a modification that does not trigger
major NSR when there could be a
‘‘reasonable possibility’’ that a project
may result in a significant emissions
increase of a regulated NSR pollutant.
Specifically, 40 CFR
51.166(r)(6)(vi)(a) provides that a
‘‘reasonable possibility’’ under
paragraph (r)(6) occurs when a projected
actual emissions increase is at least 50
percent of the amount that is a
‘‘significant emissions increase,’’
without reference to the amount that is
a significant net emissions increase, for
the regulated NSR pollutant. If a
‘‘reasonable possibility’’ occurs only as
defined by paragraph (r)(6)(vi)(a), then
the documentation of the project and
ongoing recordkeeping and reporting
requirements at (r)(6)(i)–(v) apply.
Alternatively, 40 CFR 51.166(r)(6)(vi)(b)
provides that a reasonable possibility
occurs when a projected actual
emissions increase that, added to the
amount of emissions excluded under
paragraph (b)(40)(ii)(c), sums to at least
50 percent of the amount that is a
‘‘significant emissions increase,’’
without reference to the amount that is
a significant net emissions increase, for
the regulated NSR pollutant. The
amount of emissions excluded at 40
CFR 51.166(b)(40)(ii)(c) is ‘‘that portion
of the unit’s emissions following the
project that an existing unit could have
accommodated during the consecutive
24-month period used to establish the
baseline actual emissions.’’ If a
‘‘reasonable possibility’’ occurs only as
defined by (r)(6)(vi)(b), then the
documentation and recordkeeping
requirements of 40 CFR 51.166(r)(6)(i)
apply, but the recordkeeping and
reporting requirements at (r)(6)(ii)–(v)
do not apply.
When North Carolina adopted NSR
reform provisions, the State did not
adopt the federal ‘‘reasonable
possibility’’ standard. Instead, the State
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules
adopted recordkeeping and reporting
requirements in Rule .0530(u) that apply
to all modifications that use ‘‘projected
actual emissions’’ to determine
applicability.8 The SIP-approved
version of this rule requires the owner
or operator of a source with such a
modification to submit a notification to
NCDAQ before beginning construction
that contains the information in
.0530(u)(1)–(5), which is analogous to
the information in 40 CFR
51.166(r)(6)(i). EPA incorporated this
rule into North Carolina’s SIP on August
10, 2011. See 76 FR 49313. The federal
regulations only require the owner or
operator to submit documentation under
40 CFR 51.166(r)(6)(i) to the permitting
authority pursuant to 40 CFR
51.166(r)(6)(ii) for projects at existing
electric generating units that present a
‘‘reasonable possibility’’ pursuant to 40
CFR 51.166(r)(6)(vi)(a). Therefore, the
universe of projects which must provide
the notification information to the
NCDAQ Director is greater than that
covered by 40 CFR 51.166(r)(6)(vi)(b).
The modified rule, however, narrows
the universe of projects which must
comply with the ongoing recordkeeping
and reporting requirements in paragraph
.0530(u) by including a 50 percent or
greater threshold similar to the federal
reasonable possibility rule at 51.166(r)
(6)(vi)(a). Under the SIP-approved
version of the paragraph, owners or
operators using projected actual
emissions are subject to ongoing
recordkeeping and reporting
requirements if a permit revision is not
required. North Carolina’s rule revision
requires the owner or operator of
projects that would meet the reasonable
possibility criteria of rule 51.166(r)
(6)(vi)(a) to submit a permit application
to NCDAQ to include a permit condition
with specific monitoring,
recordkeeping, and reporting of annual
emissions for 10 years if the project
involves increasing the emissions unit’s
design capacity or its potential to emit
for the regulated NSR pollutant, which
is not expressly required under the
federal reasonable possibility rule.
Although these changes would reduce
the number of sources covered by the
ongoing recordkeeping and reporting
requirements in paragraph .0530(u), the
sources subject to these requirements
would now match those in the federal
reasonable possibility rule under
51.166(r)(6)(vi)(a), and when adopting
the federal rule, EPA concluded that the
50 percent threshold would capture
most if not all projects that have a
8 The revised rule clarifies that .0530(u) applies
in lieu of the requirements of 40 CFR 51.166(r)(6)
and (7).
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higher probability of variability or error
in projected emissions and provided
certainty for the regulated community
and reviewing authorities. See 72 FR
72610, December 21, 2007. Furthermore,
revised paragraph .0530(u) still requires
a greater universe of projects to
undertake the initial documentation and
recordkeeping than the federal
regulations, and still goes a step further
to require that the initial documentation
is provided to the NCDAQ Director
instead of only being maintained on
site. The revised rule also now requires
permit conditions to provide for
ongoing monitoring, recordkeeping, and
reporting for sources that meet North
Carolina’s reasonable possibility
threshold. For these reasons, EPA
proposes to find that the changes to
paragraph .0530(u) would not interfere
with any applicable requirement
concerning attainment and reasonable
further progress, or any other applicable
CAA requirement.
Next, North Carolina updates the
incorporation by reference date of 40
CFR 51.166 in paragraph .0530(v) from
July 1, 2014, to July 1, 2019, for portions
of the CFR that are referred to in Rule
.0530 and revises the direct link to the
new CFR version at 02D
.0530(v).9 10 11 12 13 Additionally, the
9 In this NPRM, EPA is not proposing to
incorporate language to implement the equipment
replacement provision under routine maintenance
repair and replacement, as provided in EPA’s
October 27, 2003, rule. See 68 FR 61248.
Specifically, EPA is not acting on the incorporation
by reference of the 2003 changes to 40 CFR
51.166(b)(2)(iii)(a), the incorporation by reference of
40 CFR 51.166(b)(53) through (b)(56), or 51.166(y).
Instead, the version of 40 CFR 51.166(b)(2)(iii)(a)
approved into the SIP would remain March 15,
1996. The 2003 changes and new provisions were
in the version of the federal rule incorporated by
North Carolina, but prior to this were vacated by
the Circuit Court of Appeals for the District of
Columbia. See New York v. EPA, 443 F.3d 880 (D.C.
Cir. 2006). EPA subsequently removed the vacated
provisions from the CFR. See 86 FR 37918 (July 19,
2021). NCDAQ provided a letter to EPA dated
September 6, 2022, clarifying that it is not
requesting approval of these provisions into the
North Carolina SIP.
10 In this NPRM, EPA is not proposing to act on
provisions addressing the treatment of fugitive
emissions, as provided in EPA’s December 19, 2008,
rule. See 73 FR 77882. Specifically, EPA is not
acting on the incorporation by reference of 40 CFR
51.166(b)(2)(v) nor 51.166(b)(3)(iii)(d). EPA
subsequently published a final rule placing an
indefinite stay on the effective date of these
provisions. See 76 FR 17548 (March 30, 2011).
NCDAQ provided a letter to EPA dated September
6, 2022, clarifying that it is not requesting approval
of these provisions into the North Carolina SIP.
11 In this NPRM, EPA is not proposing to
incorporate a provision removing nonattainment
NSR for revoked NAAQS where the area is
attainment for the current NAAQS (‘‘orphan
nonattainment areas’’), as provided in the
implementation rule for the 2008 8-hour ozone
NAAQS at 40 CFR 51.166(i)(2). See 80 FR 12264
(March 6, 2015). This provision was in the version
of the federal rule incorporated by North Carolina.
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State adds a sentence to paragraph
.0530(v) stating that ‘‘[f]ederal
regulations referenced in 40 CFR 51.166
shall include subsequent amendments
and editions.’’ This addition ensures
that North Carolina’s PSD rule will
automatically incorporate updates to
rules cross-referenced in 40 CFR 51.166.
2. Revisions Based on the IBR Update
With the change to the IBR date, there
are several provisions of 40 CFR 51.166
referenced in the State’s PSD program
that have changed, which are discussed
herein.
NCDAQ’s updated IBR date would
change the definition of ‘‘building,
structure, facility, or installation’’ at
Rule 02D .0530(b) based on EPA’s
updated definition.14 Specifically, EPA
updated 40 CFR 51.166(b)(6), containing
the definition of a ‘‘building, structure,
facility, or installation,’’ to address
onshore oil and gas extraction activities
in a June 3, 2016, final rulemaking. See
81 FR 35622. EPA added paragraph
(b)(6)(ii), which allows SIPs to include
a different provision for what is
considered a ‘‘building, structure,
Instead, the version of 40 CFR 51.166(i)(2)
incorporated by reference at 02D .0530 would
remain July 1, 2014. The Circuit Court of Appeals
for the District of Columbia vacated the ability to
remove nonattainment NSR from such orphan
nonattainment areas in the absence of formal
redesignation to attainment or unclassifiable for
that NAAQS. See South Coast Air Quality
Management District v. EPA, 882 F.3d 1138 (D.C.
Cir. 2018). NCDAQ provided a letter to EPA dated
September 6, 2022, clarifying that it is not
requesting approval of this provision into the North
Carolina SIP. Such a provision would not have been
operable in the North Carolina SIP, as all
nonattainment areas for the 1997 8-hour ozone
NAAQS were redesignated prior to the revocation
of the NAAQS, and the 1997 annual PM2.5 NAAQS
is only revoked for areas first redesignated.
12 In this NPRM, EPA is not proposing to
incorporate the grandfathering provision for the
2015 8-hour ozone NAAQS at 40 CFR
51.166(i)(11)(ii). See 80 FR 65292 (October 26,
2015). This provision was in the version of the
federal rule incorporated by North Carolina, but
was later vacated by the Circuit Court of Appeals
for the District of Columbia. Sierra Club v. EPA, 936
F.3d 597 (D.C. Cir. 2019). EPA subsequently
removed the vacated provision from the CFR. See
86 FR 37918 (July 19, 2021). NCDAQ provided a
letter to EPA dated September 6, 2022, clarifying
that it is not requesting approval of this provision
into the North Carolina SIP.
13 On August 19, 2015, EPA revised the PSD
program to remove vacated elements regarding the
regulation of greenhouse gas (GHG) sources referred
to as ‘‘Step 2’’ or ‘‘GHG-only’’ sources. See 80 FR
50199. North Carolina regulates GHG sources for
the purposes of implementing the PSD program at
Rule 02D .0544, and therefore, this change will be
addressed more specifically under Section III.B of
this NPRM which discusses Rule 02D .0544.
14 Changing the definition of ‘‘building, structure,
facility, or installation’’ effectively changes the
definition of ‘‘stationary source’’ for purposes of
PSD permitting because ‘‘stationary source’’ is
defined as ‘‘any building, structure, facility, or
installation which emits or may emit a regulated
NSR pollutant.’’
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facility, or installation’’ with respect to
Standard Industrial Classification Group
13 for onshore oil and gas extraction
activities. Pollutant-emitting activities
in this SIC group are considered to be
adjacent under this provision ‘‘if they
are located on the same surface site; or
if they are located on surface sites that
are located within 1⁄4 mile of one
another . . . and they share
equipment.’’ The effect of this change is
that permitting is simplified for these
activities, and there is a bright line
beyond which oil and gas extraction
activities on different surface sites do
not need to be aggregated as a single
stationary source. Therefore, with this
change, fewer onshore oil and gas
projects may be considered major. EPA
noted in the June 3, 2016, final rule that
these changes to paragraph (b)(6), in
conjunction with the landscape of
updated emissions controls for this
sector, is not likely to have adverse
impacts on air quality, and that other
factors such as ‘‘the location of the
underground mineral assets, advances
in drilling technology that allow
multiple wells to be drilled from one
surface site, restrictions on well spacing
imposed by a state agency such as an oil
and gas conservation commission, and
the restrictions imposed by the owner of
the surface land’’ are more likely to
affect the owner’s or operator’s selection
of spacing of these activities than this
rule change.15 See 81 FR 35622 (June 3,
2016) for more information on EPA’s
rationale for the revised definition.
NCDAQ confirmed that this revised
definition of ‘‘building, structure,
facility, or installation’’ at 40 CFR
51.166(b)(6)(ii) is included in the State’s
revised PSD program as portions of 40
CFR 51.166 that allow the State to
exempt or not apply certain
requirements in certain circumstances
are adopted under the State’s PSD
Rule.16
Next, NCDAQ’s paragraph .0530(r)
provides procedures and requirements
for processing permit applications and
incorporates EPA’s public notice
provisions at 40 CFR 51.166(q). EPA
issued a final rule on October 18, 2016,
15 Also note that the North Carolina SIP prohibits
certain sources from causing an exceedance of an
air quality standard or contributing to a violation
of such standards (see 15A NCAC 02D .0401(c)),
and includes a minor NSR construction permitting
program for new minor sources and minor
modifications to existing sources (see 15A NCAC
02Q .0300).
16 See the document entitled ‘‘Call between
Region 4 of the Environmental Protection Agency
(EPA) and the North Carolina Department of
Environmental Quality’s Division of Air Quality
(NCDAQ) regarding 15A NCAC 02D .0530,
Prevention of Significant Deterioration,’’ which is
included in the docket for this proposed action.
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that provided permitting authorities
with the ability to public notice draft
permits and permitting decisions for
major sources, including for PSD
through revisions to 40 CFR 51.166(q),
on a website identified by the reviewing
authority as a possible alternative to
newspaper notices. See 81 FR 71613.
NCDAQ’s updated IBR date would
reference the modified language at 40
CFR 51.166(q) which provides at
(q)(2)(iii) that the required notifications
‘‘may be made on a website identified
by the reviewing authority,’’ and that
the selected notification method, the
‘‘consistent noticing method,’’ ‘‘shall be
used for all permits subject to notice
under this section and may, when
appropriate, be supplemented by other
noticing methods on individual
permits.’’
The ability to use a website as the
exclusive method for notification as an
alternative to newspaper noticing for
PSD permits requires the reviewing
authority to select electronic
notification as its ‘‘consistent noticing
method’’ for all PSD permits. There is
no language in Rule .0530 or the SIP
revision that identifies electronic
notification as NCDAQ’s ‘‘consistent
noticing method’’ for its PSD permits
nor is a website for such notices
identified. Therefore, although NCDAQ
may include public notice via a website
identified by the State, NCDAQ must
also continue to public notice all of
these permits via ‘‘advertisement in a
newspaper of general circulation in each
region in which the proposed source
would be constructed’’ until the State
submits a SIP revision selecting
electronic notice as its ‘‘consistent
noticing method’’ and EPA approves
that revision.17
Finally, the updated incorporation by
reference of federal PSD provisions
captures EPA’s updated air quality
modeling procedures. As part of EPA’s
April 15, 2020, conditional approval of
infrastructure SIP requirements for PSD
for the 2015 8-hour ozone NAAQS,
North Carolina committed to update its
PSD regulations to reference the most
current version of Appendix W to part
51. See 85 FR 20836. EPA approved the
most recent version of Appendix W on
January 17, 2017 (82 FR 5182), so North
Carolina’s incorporation by reference of
the federal PSD rules with a date of July
1, 2019, includes the provisions found
in paragraph 51.166(l), Air Quality
17 See the document entitled ‘‘Call between
Region 4 of the Environmental Protection Agency
(EPA) and the North Carolina Department of
Environmental Quality’s Division of Air Quality
(NCDAQ) Regarding 15A NCAC 02D .0530,
Prevention of Significant Deterioration,’’ which is
included in the docket for this proposed action.
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Models, which requires use of the latest
approved version of Appendix W when
carrying out air quality modeling for
PSD purposes. Also note that the
language discussed above that the State
adds to paragraph .0530(v) to include
subsequent amendments and editions of
federal regulations referenced in 40 CFR
51.166 ensures that North Carolina’s
PSD rule will automatically incorporate
the most up-to-date version of Appendix
W because it is cross-referenced in 40
CFR 51.166(l). Therefore, EPA proposes
to find that these changes resolve EPA’s
April 15, 2020, conditional approval of
North Carolina’s September 27, 2018,
2015 8-hour ozone infrastructure SIP
submission addressing PSD-related
requirements of CAA sections
110(a)(2)(C), 110(a)(2)(D)(i)(II) (prong 3),
and 110(a)(2)(J), and EPA is proposing
to convert the conditional approval to a
full approval.
The changes to North Carolina’s PSD
regulation at Rule 2D .0530 are either
consistent with or more stringent than
federal requirements and would not
interfere with any applicable
requirement concerning attainment or
reasonable further progress or any other
applicable CAA requirement. For these
reasons, as detailed above, EPA is
proposing to approve the
aforementioned changes to 2D .0530
into the North Carolina SIP.
B. 15A NCAC 02D .0544, Prevention of
Significant Deterioration Requirements
for Greenhouse Gases
1. Revisions to the North Carolina GHGs
PSD Rule
As part of the April 13, 2021,
submission, North Carolina also
includes changes to the State’s PSD
requirements for Greenhouse Gases
(GHGs) found at Rule 02D .0544. The
updates include clarification to the
applicability of the rule; changes to
requirements for monitoring,
recordkeeping, and reporting; an update
to the incorporation by reference date of
40 CFR 51.166; and other minor changes
such as typographical changes.
In paragraph .0544(a), similar to
paragraph .0530(a) in the companion
PSD rule, North Carolina moves the
applicability provisions that clarify the
rule’s connection to the federal PSD
rules found at 40 CFR 51.166, from
paragraph .0544(f) to .0544(a). Next,
North Carolina clarifies the compliance
requirements for these sources by
revising a reference to 40 CFR 51.166 at
paragraph .0544(f). Paragraph .0544(f)
previously stated that major sources and
major modifications had to comply with
requirements in 40 CFR 51.166(i) and
(a)(7) and in 51.166(j) through (o) and
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(w). North Carolina modifies this
sentence to read that these projects shall
comply with requirements in 51.166(i)
and (a)(7) and in 51.166(j) through (r)
and (w), which now includes
paragraphs (p)–(r). NCDAQ already
included the provisions of paragraphs
51.166(p)(1), (p)(3), and (p)(4)–(7)
regarding impacts to federal Class I
areas at Rule 02D .0530(q). Rule 02D
.0544 did not expressly cover paragraph
40 CFR 51.166(p) because air quality
related values in federal Class I areas
such as visibility are covered by Rule
02D .0530.18 However, paragraph
.0544(f) now also includes a reference to
paragraph 51.166(p). This is not a true
change to the North Carolina SIP
because if GHGs are regulated for PSD—
because another regulated NSR
pollutant has triggered PSD—Class I
protections also already apply wherever
there may be impacts, pursuant to Rule
02D .0530(q).
Additionally, 40 CFR 51.166(r)(1) is
already covered by paragraph .0544(m),
and 40 CFR 51.166(r)(2) is already
covered by paragraph .0544(i).
Moreover, paragraph .0544(n) is covered
the requirements of 40 CFR
51.166(r)(6)–(7) in a different, but more
stringent manner, and this paragraph
continues to outline different and more
stringent requirements than the federal
minimum requirements. Paragraph
.0544(n) is discussed in more detail
below. Paragraph .0544(l) provides
procedures and requirements for
processing permit applications and also
covers 40 CFR 51.166(q) and continues
to do so. Additionally, the language
previously approved at .0544(f)
regarding the transition provisions at 40
CFR 52.21(i)(11)(i) and (ii) and 40 CFR
52.21(m)(1)(vii)–(viii) is removed. These
transition provisions functioned for a
short time 19 as grandfathering
provisions in moving from total
suspended particulates as the indicator
of a PM NAAQS to PM10 and have
recently been removed from 40 CFR
52.21.20 EPA notes that this language
18 See, e.g., ‘‘PSD and Title V Permitting Guidance
for Greenhouse Gases’’ U.S. Environmental
Protection Agency, Office of Air Quality Planning
and Standards, Air Quality Policy Division,
Research Triangle Park, NC. EPA–457/B–11–001
(March 2011). Available at: https://www.epa.gov/
sites/default/files/2015-12/documents/
ghgpermittingguidance.pdf.
19 The exemption at 40 CFR 52.21(i)(11)(i) for air
quality monitoring required at 40 CFR
52.21(m)(1)(i)–(iv) of PM10 functioned for PSD
permit applications received on or before June 1,
1988. The exemption at 40 CFR 52.21(i)(11)(ii)
relating to air quality monitoring required at 40 CFR
52.21(m)(1)(iii)–(iv) and (m)(3) functioned for PSD
permit applications received after June 1, 1988, but
no later than December 1, 1988. See 52 FR 24672
(July 1, 1987).
20 See 86 FR 37918 (July 19, 2021).
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would never have functioned in Rule
02D .0544 because it does not relate to
GHGs. Therefore, the removal of this
PM10 grandfathering language is
clarifying in nature.
The State then makes changes to
paragraph .0544(h) to align with
paragraph .0530(j) by eliminating a
reference to Rule 02Q .0302. Previously,
paragraph .0544(h) specified that Rule
02Q .0302 did not apply to sources
subject to Rule 02D .0544. However,
Rule 02Q .0302, Facilities Not Likely to
Contravene Demonstration, which
provided exemptions from the
requirement to obtain minor NSR
construction permits, is repealed and
was never approved as part of the North
Carolina SIP. Therefore, there is no need
to specify that this repealed regulation
is not applicable to sources that trigger
PSD.
Next, North Carolina makes changes
in paragraph .0544(n) that conform to
the changes made to companion PSD
paragraph .0530(u), described in greater
detail above. Like the PSD changes
discussed in Section III.A.1 of this
NPRM, the North Carolina regulations
remain more stringent than the federal
requirements by (1) requiring all
projects utilizing the ‘‘projected actual
emissions’’ approach to document the
project details and notify NCDAQ of the
project,21 which is more stringent than
the documentation and initial
recordkeeping requirements of
51.166(r)(6)(i), and (2) requiring those
projects which calculate a ‘‘projected
actual emissions’’ increase pursuant to
40 CFR 51.166(b)(40)(ii)(a) and (ii)(b),
minus the baseline actual emissions,
without reference to the amount that is
a significant net emissions increase, of
50 percent or greater of the amount that
is a significant emissions increase for
the regulated NSR pollutant to include
monitoring, recordkeeping, and
reporting (consistent with
51.166(r)(6)(ii)–(v)) in the issued permit.
The State then makes several changes
to paragraph .0544(o). First, North
Carolina updates the incorporation by
reference date of 40 CFR 51.166 from
July 20, 2011, to July 1, 2019, and
revises the direct link to the new CFR
version. Next, like changes made to 02D
.0530(v), the State adds a sentence to
21 Notification ‘‘shall include: (1) a description of
the project; (2) identification of sources whose
emissions could be affected by the project; (3) the
calculated projected actual emissions and an
explanation of how the projected actual emissions
were calculated, including identification of
emissions excluded by 40 CFR 51.166(b)(40)(ii)(c);
(4) the calculated baseline actual emissions in
Subparagraph (b)(1) of this Rule an explanation of
how the baseline actual emissions were calculated;
and (5) any netting calculations, if applicable.’’ See
15A NCAC 02D .0544(n).
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61553
paragraph .0544(o) stating that ‘‘[f]ederal
regulations referenced in 40 CFR 51.166
shall include subsequent amendments
and editions.’’ This addition ensures
that North Carolina’s PSD GHG rule will
automatically incorporate updates to
rules cross-referenced in 40 CFR 51.166.
2. Revisions Based on the IBR Update
There are several changes included in
the PSD program with the change to the
IBR date. The relevant changes related
to GHGs in this timeframe covered by
the update are discussed in this section.
On January 2, 2011, GHG emissions
were, for the first time, covered by the
PSD and title V operating permit
programs. See 75 FR 17004 (April 2,
2010). To establish a process for phasing
in the permitting requirements for
stationary sources of GHGs under the
CAA’s PSD and title V programs, on
June 3, 2010, EPA published a final rule
entitled ‘‘Prevention of Significant
Deterioration and Title V Greenhouse
Gas Tailoring Rule’’ (hereinafter referred
to as the ‘‘GHG Tailoring Rule’’). See 75
FR 31514. In Step 1 of the GHG
Tailoring Rule, which began on January
2, 2011, EPA limited application of PSD
and title V requirements to sources and
modifications of GHG emissions, but
only if they were subject to PSD or title
V ‘‘anyway’’ due to their emissions of
pollutants other than GHGs. These
sources and modifications covered
under Step 1 are commonly referred to
as ‘‘anyway sources’’ and ‘‘anyway
modifications,’’ respectively.
In Step 2 of the GHG Tailoring Rule,
which applied as of July 1, 2011, the
PSD and title V permitting requirements
extended beyond the sources and
modifications covered under Step 1 to
apply to sources that were classified as
major sources based solely on their GHG
emissions or potential to emit GHGs.
Step 2 also applied PSD permitting
requirements to modifications of
otherwise major sources that would
increase only GHG emissions above the
level in the federal PSD regulations.
EPA generally described the sources and
modifications covered by PSD under
Step 2 of the Tailoring Rule as ‘‘Step 2
sources and modifications’’ or ‘‘GHGonly sources and modifications.’’
Subsequently, EPA published Step 3
of the GHG Tailoring Rule on July 12,
2012. See 77 FR 41051. In this rule, EPA
decided against further phase-in of the
PSD and title V requirements for sources
emitting lower levels of GHG emissions.
Thus, the thresholds for determining
PSD and title V applicability based on
emissions of GHGs remained the same
as established in Steps 1 and 2 of the
Tailoring Rule.
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On June 23, 2014, the U.S. Supreme
Court addressed the application of
stationary source permitting
requirements to GHG emissions in
Utility Air Regulatory Group (UARG) v.
EPA, 134 S. Ct. 2427 (2014). The
Supreme Court upheld EPA’s regulation
of GHG Step 1—or ‘‘anyway’’ sources—
but held that EPA may not treat GHGs
as air pollutants for the purpose of
determining whether a source is a major
source (or is undergoing a major
modification) and thus require the
source to obtain a PSD or title V permit.
Therefore, the Court invalidated the
PSD and title V permitting requirements
for GHG Step 2 sources and
modifications.
In accordance with the Supreme
Court’s decision, on April 10, 2015, the
United States Court of Appeals for the
District of Columbia Circuit (D.C.
Circuit) issued an Amended Judgment
vacating the regulations that
implemented Step 2 of the GHG
Tailoring Rule, but not the regulations
that implement Step 1 of the GHG
Tailoring Rule. See Coalition for
Responsible Regulation, Inc. v. EPA, 606
Fed. Appx. 6, 7 (D.C. Cir. 2015). The
Amended Judgment specifically vacated
the EPA regulations under review
(including 40 CFR 51.166(b)(48)(v) and
40 CFR 52.21(b)(49)(v)) ‘‘to the extent
they require a stationary source to
obtain a PSD permit if greenhouse gases
are the only pollutant (i) that the source
emits or has the potential to emit above
the applicable major source thresholds,
or (ii) for which there is a significant
emissions increase from a
modification.’’ Id. at 7–8.
EPA subsequently promulgated a
good cause final rule on August 19,
2015, entitled ‘‘Prevention of Significant
Deterioration and Title V Permitting for
Greenhouse Gases: Removal of Certain
Vacated Elements.’’ See 80 FR 50199
(August 19, 2015) (hereinafter referred
to as the ‘‘Good Cause GHG Rule’’). The
rule removed from the federal
regulations the portions of the PSD
permitting provisions for Step 2 sources
that were vacated by the D.C. Circuit
(i.e., 40 CFR 51.166(b)(48)(v) and
52.21(b)(49)(v)). EPA therefore no longer
has the authority to conduct PSD
permitting for Step 2 sources, nor can
the Agency approve provisions
submitted by a state for inclusion in its
SIP providing this authority. On October
3, 2016, EPA proposed to revise
provisions in the PSD permitting
regulations applicable to GHGs to
address the GHG applicability threshold
for PSD in order to fully conform with
UARG and the Amended Judgment, but
those revisions have not been finalized.
See 81 FR 68110 and 81 FR 81711.
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North Carolina regulates GHG sources
for the purposes of implementing the
PSD program at Rule 02D .0544, and the
State’s updated IBR date of 40 CFR
51.166(b) includes this update to the
definition of ‘‘subject to regulation’’ at
(b)(48) included in EPA’s August 19,
2015, Good Cause GHG Rule. However,
on August 8, 2019, EPA approved a
January 12, 2018, SIP revision to modify
the applicability procedures at Rule 02D
.0544(a) to specify that a ‘‘major
stationary source or major modification
shall not be required to obtain a
prevention of significant deterioration
(PSD) permit on the sole basis of its
greenhouse gases emissions.’’ See 84 FR
38876. The intent and effect of the
January 12, 2018, SIP revision was to
address the D.C. Circuit court’s vacatur
of GHG-only or ‘‘Step 2’’ provisions in
the federal PSD regulations. Therefore,
the North Carolina SIP already contains
a provision addressing the UARG
decision, which vacated the ability to
regulate GHG-only sources under the
PSD program.22 The change to the
definition of ‘‘subject to regulation’’ at
40 CFR 51.166(b)(48) made in EPA’s
August 19, 2015, final rule is
incorporated in the April 13, 2021, SIP
revision, which aligns the North
Carolina definitions with the federal
regulations and with North Carolina’s
approved applicability procedures. See
EPA’s August 8, 2019, final action for
further details on how the January 12,
2018, SIP revision revised the North
Carolina PSD program for regulating
GHGs.
Finally, similar to changes made to
02D .0530(v), the updated incorporation
by reference of federal PSD provisions
captures EPA’s updated air quality
modeling procedures. As part of EPA’s
April 15, 2020, conditional approval of
infrastructure SIP requirements for PSD
for the 2015 8-hour ozone NAAQS,
North Carolina committed to update its
PSD regulations to reference the most
current version of Appendix W to part
51. See 85 FR 20836. EPA approved the
most recent version of Appendix W on
January 17, 2017 (82 FR 5182), so North
Carolina’s incorporation by reference of
the federal PSD rules with a date of July
1, 2019, includes the provisions found
in paragraph 51.166(l), Air Quality
22 North Carolina supplemented its January 12,
2018, submittal on March 4, 2019, to, among other
things, exclude the incorporation by reference of
the provisions of the Biomass Deferral Rule. See 76
FR 43490 (July 20, 2011). For further discussion on
the March 4, 2019, letter, refer to EPA’s May 23,
2019, NPRM (84 FR 23750). Therefore, EPA
understands that North Carolina continues to not
adopt the Biomass Deferral Rule provisions in this
IBR update of 40 CFR 51.166 provisions. EPA has
since removed this Biomass Deferral Rule language
from the CFR. See 86 FR 37918 (July 19, 2021).
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Models, which requires use of the latest
approved version of Appendix W when
carrying out air quality modeling for
PSD purposes. Also note that the
language discussed above that the State
adds to paragraph .0544(o) to include
subsequent amendments and editions
for federal regulations referenced in 40
CFR 51.166 will automatically
incorporate the most up-to-date version
of Appendix W because it is crossreferenced in 40 CFR 51.166(l).
Therefore, EPA proposes to find that
these changes resolve EPA’s April 15,
2020, conditional approval of North
Carolina’s September 27, 2018, 2015 8hour ozone infrastructure SIP
submission addressing the PSD-related
requirements of element C, Prong 3, and
element J, and EPA is proposing to
convert the conditional approval to a
full approval.
The changes to North Carolina’s PSD
regulation for GHGs, 02D .0544, are
either consistent with or more stringent
than federal requirements and would
not interfere with any applicable
requirement concerning attainment and
reasonable further progress, or any other
applicable CAA requirement. For these
reasons, as detailed above, EPA is
proposing to approve the
aforementioned changes to Rule 02D
.0544 into the North Carolina SIP.
IV. Incorporation by Reference
In this document, EPA is proposing to
include in a final EPA rule, regulatory
text that includes incorporation by
reference. In accordance with
requirements of 1 CFR 51.5, and as
discussed in Section III of this
preamble, EPA is proposing to
incorporate by reference North Carolina
regulations 15A NCAC 02D .0530,
‘‘Prevention of Significant
Deterioration,’’ state effective on
October 1, 2020, and .0544, ‘‘Prevention
of Significant Deterioration
Requirements for Greenhouse Gases,’’
state effective on November 1, 2020.23
23 EPA is not proposing to approve the October
1, 2020, state effective version of Rule 02D .0530 to
the extent the rule would incorporate by reference
40 CFR 51.166(b)(2)(iii)(a) as of July 1, 2019.
Instead, the version of 40 CFR 51.166(b)(2)(iii)(a)
approved into the SIP would remain March 15,
1996, with a state effective date of November 21,
1996. See 64 FR 55831 (October 15, 1999). EPA is
not proposing to approve the October 2020, state
effective version of Rule 02D .0530 to the extent the
rule would incorporate by reference 40 CFR
51.166(i)(2). Instead, the version of 40 CFR
51.166(i)(2) approved into the SIP would remain
July 1, 2014, approved with a state effective date of
September 1, 2017. See 83 FR 45827 (September 11,
2018). Finally, EPA is not proposing to approve the
October 1, 2020, state effective version of Rule 02D
.0530 to the extent the rule would incorporate by
reference the following federal provisions: 40 CFR
51.166(b)(2)(v), 51.166(b)(3)(iii)(d), 51.166(b)(53)–
(56), 51.166(i)(11)(ii), and 51.166(y). If EPA finalizes
E:\FR\FM\12OCP1.SGM
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Federal Register / Vol. 87, No. 196 / Wednesday, October 12, 2022 / Proposed Rules
EPA has made, and will continue to
make, these materials generally
available through www.regulations.gov
and at the EPA Region 4 office (please
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section of
this preamble for more information).
V. Proposed Action
EPA is proposing to approve changes
to the North Carolina SIP and convert
the conditional approval for element C,
Prong 3, and element J, for the 2015 8hour ozone Infrastructure SIP to a full
approval. Specifically, EPA is proposing
to approve changes to North Carolina
Rules 15A NCAC 02D .0530, Prevention
of Significant Deterioration, and .0544,
Prevention of Significant Deterioration
Requirements for Greenhouse Gases.
jspears on DSK121TN23PROD with PROPOSALS
VI. Statutory and Executive Order
Reviews
Under the CAA, the Administrator is
required to approve a SIP submission
that complies with the provisions of the
Act and applicable Federal regulations.
See 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. This action merely proposes to
approve state law as meeting federal
requirements and does not impose
additional requirements beyond those
imposed by state law. For that reason,
this proposed 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);
• 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 (Pub. L. 104–4);
• Does not have Federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically a significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
this action, the Agency will update the SIP table at
40 CFR 52.1770(c) to reflect these exceptions.
VerDate Sep<11>2014
18:05 Oct 11, 2022
Jkt 259001
• 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).
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 proposed rule does not
have tribal implications as specified by
Executive Order 13175 (65 FR 67249,
November 9, 2000), nor will it impose
substantial direct costs on tribal
governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Lead,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile
organic compounds.
(Authority: 42 U.S.C. 7401 et seq.)
Dated: September 30, 2022.
Daniel Blackman,
Regional Administrator, Region 4.
[FR Doc. 2022–21655 Filed 10–11–22; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2017–0090; FRL–10222–
01–R3]
Air Plan Approval; Delaware; Removal
of Excess Emissions Provisions
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The Environmental Protection
Agency (EPA) is proposing to approve
certain portions of a state
implementation plan (SIP) revision
submitted by the State of Delaware,
through the Delaware Department of
Natural Resources and Environmental
Control (DNREC), on November 22,
2016. The revision was submitted by
SUMMARY:
PO 00000
Frm 00013
Fmt 4702
Sfmt 4702
61555
Delaware in response to a national
finding of substantial inadequacy and
SIP call published on June 12, 2015,
which included certain provisions in
the Delaware SIP related to excess
emissions during startup, shutdown,
and malfunction (SSM) events. EPA is
proposing to approve two specific
provisions of the submitted SIP revision
and proposing to determine that such
SIP revision corrects some of the
deficiencies in Delaware’s SIP identified
in the June 12, 2015, SIP call. EPA plans
to act on the remainder of the SIP
revision in a separate action or actions.
Written comments must be
received on or before November 14,
2022.
DATES:
Submit your comments,
identified by Docket ID No. EPA–R03–
OAR–2017–0090 at
www.regulations.gov, or via email to
gordon.mike@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
www.epa.gov/dockets/commenting-epadockets.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Mallory Moser, Planning &
Implementation Branch (3AD30), Air &
Radiation Division, U.S. Environmental
Protection Agency, Region III, Four
Penn Center, 1600 John F. Kennedy
Boulevard, Philadelphia, Pennsylvania
19103. The telephone number is (215)
814–2030. Ms. Moser can also be
reached via electronic mail at
moser.mallory@epa.gov.
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Agencies
[Federal Register Volume 87, Number 196 (Wednesday, October 12, 2022)]
[Proposed Rules]
[Pages 61548-61555]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21655]
=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R04-OAR-2022-0782; FRL-10215-01-R4]
Air Plan Approval; NC; Miscellaneous NSR Revisions and Updates;
Updates to References to Appendix W Modeling Guideline
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve a State Implementation Plan (SIP) revision, submitted by North
Carolina on April 13, 2021. Specifically, EPA is proposing to approve
updates to the incorporation by reference of federal new source review
(NSR) regulations and federal guidelines on air quality modeling in the
North Carolina SIP. Based on its proposal to approve this revision, EPA
is also proposing to convert the previous conditional approval
regarding infrastructure SIP prevention of significant deterioration
(PSD) elements for the 2015 Ozone National Ambient Air Quality Standard
(NAAQS) for North Carolina to a full approval. EPA is also proposing to
approve additional updates to North Carolina's NSR regulations to
better align them with the federal rules. EPA is proposing to approve
these changes pursuant to the Clean Air Act (CAA or Act).
DATES: Comments must be received on or before November 14, 2022.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2022-0782 at www.regulations.gov. Follow the online instructions
for submitting comments. Once submitted, comments cannot be edited or
removed from Regulations.gov. 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
[[Page 61549]]
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, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Josue Ortiz Borrero, Air Regulatory
Management Section, Air Planning and Implementation Branch, Air and
Radiation Division, U.S. Environmental Protection Agency, Region 4, 61
Forsyth Street SW, Atlanta, Georgia 30303-8960. The telephone number is
(404) 562-8085. Mr. Ortiz Borrero can also be reached via electronic
mail at staff email [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
On October 1, 2015, EPA promulgated a revised primary and secondary
NAAQS for ozone, revising the 8-hour ozone standards from 0.075 parts
per million (ppm) to a new more protective level of 0.070 ppm. See 80
FR 65292 (October 26, 2015). Pursuant to section 110(a)(1) of the CAA,
states are required to submit SIP revisions meeting the applicable
requirements of section 110(a)(2) within three years after promulgation
of a new or revised NAAQS or within such shorter period as EPA may
prescribe. Section 110(a)(2) requires states to address basic SIP
elements such as requirements for monitoring, basic program
requirements, and legal authority that are designed to assure
attainment and maintenance of the NAAQS. This particular type of SIP is
commonly referred to as an ``infrastructure SIP or iSIP.'' States were
required to submit such SIP revisions for the 2015 8-hour ozone NAAQS
to EPA no later than October 1, 2018.\1\
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\1\ In infrastructure SIP submissions, states generally certify
evidence of compliance with sections 110(a)(1) and (2) of the CAA
through a combination of state regulations and statutes, some of
which have been incorporated into the SIP. In addition, certain
federally-approved, non-SIP regulations may also be appropriate for
demonstrating compliance with sections 110(a)(1) and (2).
---------------------------------------------------------------------------
On September 27, 2018, North Carolina met the requirement to submit
an iSIP for the 2015 8-hour ozone NAAQS by the October 1, 2018,
deadline. Through previous rulemakings, EPA approved most of the
infrastructure SIP elements for the 2015 Ozone NAAQS for North
Carolina.\2\ However, regarding the PSD elements of section
110(a)(2)(C), (D)(i)(II) (prong 3), and (J) (herein referred to as
element C, Prong 3, and element J, respectively), EPA conditionally
approved \3\ these portions of North Carolina's iSIP submission because
of outdated references to the federal guideline on air quality modeling
found in Appendix W of 40 CFR part 51.\4\
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\2\ EPA approved most elements for North Carolina, except for
the Interstate Transport provisions (Prongs 1 & 2) and the PSD
provisions (elements C, Prong 3, and J), on March 11, 2020. See 85
FR 14147. EPA approved the interstate transport provisions (Prongs 1
& 2) for North Carolina on December 2, 2021. See 86 FR 68413.
\3\ Under CAA section 110(k)(4), EPA may conditionally approve a
SIP revision based on a commitment from a state to adopt specific
enforceable measures by a date certain, but not later than one year
from the date of approval. If the state fails to meet the commitment
within one year of the final conditional approval, the conditional
approval will be treated as a disapproval and EPA will issue a
finding of disapproval.
\4\ See 85 FR 20836 (April 15, 2020).
---------------------------------------------------------------------------
For elements C and J to be approved for PSD, a state needs to
demonstrate that its SIP meets the PSD-related infrastructure
requirements of these sections. These requirements are met if the
state's implementation plan includes a PSD program that meets current
federal requirements. Element D(i)(II) (prong 3) is also approvable
when a state's implementation plan contains a fully approved, up-to-
date PSD program. EPA's PSD regulations at 40 CFR 51.166(l) require
that modeling be conducted in accordance with Appendix W, Guideline on
Air Quality Models. EPA promulgated the most current version of
Appendix W on January 17, 2017 (82 FR 5182). Therefore, in order to
approve the iSIP PSD elements for the 2015 8-hour ozone NAAQS, PSD
regulations in SIPs are required to reference the most current version
of Appendix W.
As discussed in the conditional approval for the 2015 ozone iSIP
PSD elements, North Carolina's SIP contains outdated references to
Appendix W and the State committed to update the outdated references
and submit a SIP revision within one year of EPA's final rule
conditionally approving these PSD elements. Accordingly, North Carolina
was required to make its submission by April 15, 2021. North Carolina
met its commitment by submitting SIP revisions to correct the
deficiencies on or before the deadline. Through this Notice of Proposed
Rulemaking (NPRM), EPA is now proposing to approve the changes to the
North Carolina SIP and to convert the conditional approval to full
approvals for North Carolina, regarding element C, Prong 3, and element
J, for the 2015 8-hour ozone NAAQS infrastructure SIP.
II. What is EPA's approach to the review of infrastructure SIP
submissions?
As discussed above, whenever EPA promulgates a new or revised
NAAQS, CAA section 110(a)(1) requires states to submit infrastructure
SIPs that meet the various requirements of CAA section 110(a)(2), as
applicable. Due to ambiguity in some of the language of CAA section
110(a)(2), EPA believes that it is appropriate to interpret these
provisions in the specific context of acting on infrastructure SIP
submissions. EPA has previously provided comprehensive guidance on the
application of these provisions through a guidance document for
infrastructure SIP submissions and through regional actions on
infrastructure submissions.\5\ Unless otherwise noted below, EPA is
following that existing approach in acting on this submission. In
addition, in the context of acting on such infrastructure submissions,
EPA evaluates the submitting state's implementation plan for facial
compliance with statutory and regulatory requirements, not for the
state's implementation of its SIP.\6\ EPA has other authority to
address any issues concerning a state's implementation of the rules,
regulations, consent orders, etc. that comprise its SIP.
---------------------------------------------------------------------------
\5\ EPA explains and elaborates on these ambiguities and its
approach to address them in its September 13, 2013 Infrastructure
SIP Guidance (available at https://www3.epa.gov/airquality/urbanair/sipstatus/docs/Guidance_on_Infrastructure_SIP_Elements_Multipollutant_FINAL_Sept_2013.pdf), as well as in numerous agency actions, including EPA's prior
action on the North Carolina infrastructure SIP to address the 2010
Nitrogen Dioxide NAAQS. See 81 FR 47115 (July 20, 2016).
\6\ See Mont. Envtl. Info. Ctr. v. Thomas, 902 F.3d 971 (9th
Cir. 2018).
---------------------------------------------------------------------------
III. EPA's Analysis of North Carolina's April 13, 2021, Submittal
On April 13, 2021, North Carolina submitted a SIP revision to
address the readoption of several state air quality rules.\7\ Part of
that submission contains updates to the State's major NSR regulations,
including updates to the version of 40 CFR part 51, Appendix W,
incorporated by reference into North Carolina's PSD rules in order to
meet the PSD Infrastructure SIP requirements for the 2015 8-hour ozone
NAAQS and to satisfy the April 15, 2020, conditional approval of
element C, Prong 3, and
[[Page 61550]]
element J of North Carolina's 2015 8-hour ozone NAAQS infrastructure
SIP. Specifically, the April 13, 2021, SIP revision makes changes to
North Carolina Rules 15A NCAC 02D .0530, Prevention of Significant
Deterioration, and .0544, Prevention of Significant Deterioration
Requirements for Greenhouse Gases.
---------------------------------------------------------------------------
\7\ The April 13, 2021, submission included many North Carolina
rules which the State requested EPA approve into the SIP. This NPRM
only proposes approval of changes to 15A NCAC 02D .0530 and .0544.
All other portions of the April 13, 2021, submission will be or have
been addressed in separate rulemakings.
---------------------------------------------------------------------------
As explained in Sections III.A and III.B of this preamble, EPA is
proposing to approve the changes to these regulations into the North
Carolina SIP, and to convert the conditional approval of element C,
Prong 3, and element J, of North Carolina's 2015 8-hour ozone NAAQS
infrastructure SIP to a full approval.
A. 15A NCAC 02D .0530, Prevention of Significant Deterioration
1. Revisions to the North Carolina PSD Rule
The proposed changes to Rule 02D .0530 in North Carolina's April
13, 2021, submission include changes to better align with language
found in the federal PSD regulations at 40 CFR 51.166, as well updating
the incorporation by reference date to the federal rule.
In paragraph .0530(a), North Carolina moves the applicability
provisions that clarify the rule's connection to the federal PSD rules
found at 40 CFR 51.166, from paragraph .0530(g) to .0530(a). There are
no substantive changes to the language of the paragraph.
In paragraph .0530(b), the State rewords prefatory language for
existing exceptions to the definitions incorporated from the federal
PSD rules but does not change the meaning of the provision. Next, in
subparagraph .0530(b)(4), North Carolina deletes ``ammonia'' from the
PSD provision stating that volatile organic compounds and ammonia are
not significant precursors to fine particulate matter
(PM2.5). Removing ammonia from the list of constituents that
are not significant precursors to PM2.5 aligns with the PSD
definition of ``regulated NSR pollutant,'' at 40 CFR
51.166(b)(49)(i)(b), which the State already incorporates by reference.
EPA does not specifically address ammonia in the PSD regulations, so
the SIP revision does not change how ammonia is treated with respect to
attainment or unclassifiable areas. The SIP revision also makes other
minor changes to subparagraph (b)(4) such as changing formatting and
minor wording changes.
The revision adds subparagraph .0530(b)(5) to specify different
language from 40 CFR 51.166(b)(49)(i)(a). The federal regulation states
that as of January 1, 2011, condensable coarse PM (PM10) and
PM2.5 ``shall be accounted for in applicability
determinations and in establishing emissions limitations for
PM2.5 and PM10 in PSD permits.'' The version of
subparagraph .0530(b)(5) in the SIP revision provides instead that,
``starting January 1, 2011, in addition to PM10 and
PM2.5, for particulate matter (PM), condensable particulate
matter shall be accounted for in applicability determinations and in
establishing emissions limitations for each of these regulated NSR
pollutants in PSD permits.'' In this case, NCDAQ requirements are more
stringent by requiring that total PM be accounted for, including total
condensable PM, whereas the federal provisions only account for
condensable PM10 and PM2.5. See 77 FR 65107
(October 25, 2012).
Next, North Carolina clarifies the compliance requirements for
major stationary sources and major modifications at paragraph .0530(g).
Paragraph .0530(g) previously stated that major sources and major
modifications had to comply with requirements in 40 CFR 51.166(a)(7)
and (i) and in 40 CFR 51.166(j) through (o) and (w). North Carolina
modifies this sentence to read that these projects shall comply with
requirements in 51.166(a)(7) and (i) and in 51.166(j) through (r) and
(w), which now includes paragraphs (p)-(r).
The North Carolina SIP already covered the provisions of
subparagraph 51.166(p)(1), (p)(3), and (p)(4)-(7) regarding impacts to
federal Class I areas at paragraph .0530(q). The existing SIP does not
include a reference to subparagraph 51.166(p)(2) because this provision
is a general statement affirming the federal land manager's
responsibility to manage Class I areas and to ``consider, in
consultation with the Administrator, whether a proposed source or
modification would have an adverse impact on'' air quality related
values such as visibility. States are not required to include this
provision in SIPs. This provision merely describes responsibilities of
federal land managers and is true whether or not North Carolina
specifically includes it in the SIP. However, the SIP would now include
subparagraph (p)(2) with the update to paragraph .0530(g).
Additionally, 40 CFR 51.166(r)(1) is already covered by paragraph
.0530(s), and 40 CFR 51.166(r)(2) is already covered by paragraph
.0530(k). Moreover, paragraph .0530(u) covered the requirements of 40
CFR 51.166(r)(6) and (r)(7) in a different, but more stringent manner,
and this paragraph continues to outline different and more stringent
requirements than the federal minimum requirements. Paragraph .0530(u)
is discussed in more detail below. Finally, paragraph .0530(r) provides
procedures and requirements for processing permit applications and
covers 40 CFR 51.166(q) and continues to do so.
Next, North Carolina revises its monitoring and recordkeeping
requirements in subparagraph .0530(u) for projects which do not trigger
PSD requirements, but which make use of ``projected actual emissions''
for determining applicability. For sources that rely on ``projected
actual emissions'' to determine PSD applicably, the federal NSR rules
require recordkeeping and reporting for a modification that does not
trigger major NSR when there could be a ``reasonable possibility'' that
a project may result in a significant emissions increase of a regulated
NSR pollutant.
Specifically, 40 CFR 51.166(r)(6)(vi)(a) provides that a
``reasonable possibility'' under paragraph (r)(6) occurs when a
projected actual emissions increase is at least 50 percent of the
amount that is a ``significant emissions increase,'' without reference
to the amount that is a significant net emissions increase, for the
regulated NSR pollutant. If a ``reasonable possibility'' occurs only as
defined by paragraph (r)(6)(vi)(a), then the documentation of the
project and ongoing recordkeeping and reporting requirements at
(r)(6)(i)-(v) apply. Alternatively, 40 CFR 51.166(r)(6)(vi)(b) provides
that a reasonable possibility occurs when a projected actual emissions
increase that, added to the amount of emissions excluded under
paragraph (b)(40)(ii)(c), sums to at least 50 percent of the amount
that is a ``significant emissions increase,'' without reference to the
amount that is a significant net emissions increase, for the regulated
NSR pollutant. The amount of emissions excluded at 40 CFR
51.166(b)(40)(ii)(c) is ``that portion of the unit's emissions
following the project that an existing unit could have accommodated
during the consecutive 24-month period used to establish the baseline
actual emissions.'' If a ``reasonable possibility'' occurs only as
defined by (r)(6)(vi)(b), then the documentation and recordkeeping
requirements of 40 CFR 51.166(r)(6)(i) apply, but the recordkeeping and
reporting requirements at (r)(6)(ii)-(v) do not apply.
When North Carolina adopted NSR reform provisions, the State did
not adopt the federal ``reasonable possibility'' standard. Instead, the
State
[[Page 61551]]
adopted recordkeeping and reporting requirements in Rule .0530(u) that
apply to all modifications that use ``projected actual emissions'' to
determine applicability.\8\ The SIP-approved version of this rule
requires the owner or operator of a source with such a modification to
submit a notification to NCDAQ before beginning construction that
contains the information in .0530(u)(1)-(5), which is analogous to the
information in 40 CFR 51.166(r)(6)(i). EPA incorporated this rule into
North Carolina's SIP on August 10, 2011. See 76 FR 49313. The federal
regulations only require the owner or operator to submit documentation
under 40 CFR 51.166(r)(6)(i) to the permitting authority pursuant to 40
CFR 51.166(r)(6)(ii) for projects at existing electric generating units
that present a ``reasonable possibility'' pursuant to 40 CFR
51.166(r)(6)(vi)(a). Therefore, the universe of projects which must
provide the notification information to the NCDAQ Director is greater
than that covered by 40 CFR 51.166(r)(6)(vi)(b).
---------------------------------------------------------------------------
\8\ The revised rule clarifies that .0530(u) applies in lieu of
the requirements of 40 CFR 51.166(r)(6) and (7).
---------------------------------------------------------------------------
The modified rule, however, narrows the universe of projects which
must comply with the ongoing recordkeeping and reporting requirements
in paragraph .0530(u) by including a 50 percent or greater threshold
similar to the federal reasonable possibility rule at
51.166(r)(6)(vi)(a). Under the SIP-approved version of the paragraph,
owners or operators using projected actual emissions are subject to
ongoing recordkeeping and reporting requirements if a permit revision
is not required. North Carolina's rule revision requires the owner or
operator of projects that would meet the reasonable possibility
criteria of rule 51.166(r)(6)(vi)(a) to submit a permit application to
NCDAQ to include a permit condition with specific monitoring,
recordkeeping, and reporting of annual emissions for 10 years if the
project involves increasing the emissions unit's design capacity or its
potential to emit for the regulated NSR pollutant, which is not
expressly required under the federal reasonable possibility rule.
Although these changes would reduce the number of sources covered
by the ongoing recordkeeping and reporting requirements in paragraph
.0530(u), the sources subject to these requirements would now match
those in the federal reasonable possibility rule under
51.166(r)(6)(vi)(a), and when adopting the federal rule, EPA concluded
that the 50 percent threshold would capture most if not all projects
that have a higher probability of variability or error in projected
emissions and provided certainty for the regulated community and
reviewing authorities. See 72 FR 72610, December 21, 2007. Furthermore,
revised paragraph .0530(u) still requires a greater universe of
projects to undertake the initial documentation and recordkeeping than
the federal regulations, and still goes a step further to require that
the initial documentation is provided to the NCDAQ Director instead of
only being maintained on site. The revised rule also now requires
permit conditions to provide for ongoing monitoring, recordkeeping, and
reporting for sources that meet North Carolina's reasonable possibility
threshold. For these reasons, EPA proposes to find that the changes to
paragraph .0530(u) would not interfere with any applicable requirement
concerning attainment and reasonable further progress, or any other
applicable CAA requirement.
Next, North Carolina updates the incorporation by reference date of
40 CFR 51.166 in paragraph .0530(v) from July 1, 2014, to July 1, 2019,
for portions of the CFR that are referred to in Rule .0530 and revises
the direct link to the new CFR version at 02D
.0530(v).9 10 11 12 13 Additionally, the State adds a
sentence to paragraph .0530(v) stating that ``[f]ederal regulations
referenced in 40 CFR 51.166 shall include subsequent amendments and
editions.'' This addition ensures that North Carolina's PSD rule will
automatically incorporate updates to rules cross-referenced in 40 CFR
51.166.
---------------------------------------------------------------------------
\9\ In this NPRM, EPA is not proposing to incorporate language
to implement the equipment replacement provision under routine
maintenance repair and replacement, as provided in EPA's October 27,
2003, rule. See 68 FR 61248. Specifically, EPA is not acting on the
incorporation by reference of the 2003 changes to 40 CFR
51.166(b)(2)(iii)(a), the incorporation by reference of 40 CFR
51.166(b)(53) through (b)(56), or 51.166(y). Instead, the version of
40 CFR 51.166(b)(2)(iii)(a) approved into the SIP would remain March
15, 1996. The 2003 changes and new provisions were in the version of
the federal rule incorporated by North Carolina, but prior to this
were vacated by the Circuit Court of Appeals for the District of
Columbia. See New York v. EPA, 443 F.3d 880 (D.C. Cir. 2006). EPA
subsequently removed the vacated provisions from the CFR. See 86 FR
37918 (July 19, 2021). NCDAQ provided a letter to EPA dated
September 6, 2022, clarifying that it is not requesting approval of
these provisions into the North Carolina SIP.
\10\ In this NPRM, EPA is not proposing to act on provisions
addressing the treatment of fugitive emissions, as provided in EPA's
December 19, 2008, rule. See 73 FR 77882. Specifically, EPA is not
acting on the incorporation by reference of 40 CFR 51.166(b)(2)(v)
nor 51.166(b)(3)(iii)(d). EPA subsequently published a final rule
placing an indefinite stay on the effective date of these
provisions. See 76 FR 17548 (March 30, 2011). NCDAQ provided a
letter to EPA dated September 6, 2022, clarifying that it is not
requesting approval of these provisions into the North Carolina SIP.
\11\ In this NPRM, EPA is not proposing to incorporate a
provision removing nonattainment NSR for revoked NAAQS where the
area is attainment for the current NAAQS (``orphan nonattainment
areas''), as provided in the implementation rule for the 2008 8-hour
ozone NAAQS at 40 CFR 51.166(i)(2). See 80 FR 12264 (March 6, 2015).
This provision was in the version of the federal rule incorporated
by North Carolina. Instead, the version of 40 CFR 51.166(i)(2)
incorporated by reference at 02D .0530 would remain July 1, 2014.
The Circuit Court of Appeals for the District of Columbia vacated
the ability to remove nonattainment NSR from such orphan
nonattainment areas in the absence of formal redesignation to
attainment or unclassifiable for that NAAQS. See South Coast Air
Quality Management District v. EPA, 882 F.3d 1138 (D.C. Cir. 2018).
NCDAQ provided a letter to EPA dated September 6, 2022, clarifying
that it is not requesting approval of this provision into the North
Carolina SIP. Such a provision would not have been operable in the
North Carolina SIP, as all nonattainment areas for the 1997 8-hour
ozone NAAQS were redesignated prior to the revocation of the NAAQS,
and the 1997 annual PM2.5 NAAQS is only revoked for areas
first redesignated.
\12\ In this NPRM, EPA is not proposing to incorporate the
grandfathering provision for the 2015 8-hour ozone NAAQS at 40 CFR
51.166(i)(11)(ii). See 80 FR 65292 (October 26, 2015). This
provision was in the version of the federal rule incorporated by
North Carolina, but was later vacated by the Circuit Court of
Appeals for the District of Columbia. Sierra Club v. EPA, 936 F.3d
597 (D.C. Cir. 2019). EPA subsequently removed the vacated provision
from the CFR. See 86 FR 37918 (July 19, 2021). NCDAQ provided a
letter to EPA dated September 6, 2022, clarifying that it is not
requesting approval of this provision into the North Carolina SIP.
\13\ On August 19, 2015, EPA revised the PSD program to remove
vacated elements regarding the regulation of greenhouse gas (GHG)
sources referred to as ``Step 2'' or ``GHG-only'' sources. See 80 FR
50199. North Carolina regulates GHG sources for the purposes of
implementing the PSD program at Rule 02D .0544, and therefore, this
change will be addressed more specifically under Section III.B of
this NPRM which discusses Rule 02D .0544.
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2. Revisions Based on the IBR Update
With the change to the IBR date, there are several provisions of 40
CFR 51.166 referenced in the State's PSD program that have changed,
which are discussed herein.
NCDAQ's updated IBR date would change the definition of ``building,
structure, facility, or installation'' at Rule 02D .0530(b) based on
EPA's updated definition.\14\ Specifically, EPA updated 40 CFR
51.166(b)(6), containing the definition of a ``building, structure,
facility, or installation,'' to address onshore oil and gas extraction
activities in a June 3, 2016, final rulemaking. See 81 FR 35622. EPA
added paragraph (b)(6)(ii), which allows SIPs to include a different
provision for what is considered a ``building, structure,
[[Page 61552]]
facility, or installation'' with respect to Standard Industrial
Classification Group 13 for onshore oil and gas extraction activities.
Pollutant-emitting activities in this SIC group are considered to be
adjacent under this provision ``if they are located on the same surface
site; or if they are located on surface sites that are located within
\1/4\ mile of one another . . . and they share equipment.'' The effect
of this change is that permitting is simplified for these activities,
and there is a bright line beyond which oil and gas extraction
activities on different surface sites do not need to be aggregated as a
single stationary source. Therefore, with this change, fewer onshore
oil and gas projects may be considered major. EPA noted in the June 3,
2016, final rule that these changes to paragraph (b)(6), in conjunction
with the landscape of updated emissions controls for this sector, is
not likely to have adverse impacts on air quality, and that other
factors such as ``the location of the underground mineral assets,
advances in drilling technology that allow multiple wells to be drilled
from one surface site, restrictions on well spacing imposed by a state
agency such as an oil and gas conservation commission, and the
restrictions imposed by the owner of the surface land'' are more likely
to affect the owner's or operator's selection of spacing of these
activities than this rule change.\15\ See 81 FR 35622 (June 3, 2016)
for more information on EPA's rationale for the revised definition.
NCDAQ confirmed that this revised definition of ``building, structure,
facility, or installation'' at 40 CFR 51.166(b)(6)(ii) is included in
the State's revised PSD program as portions of 40 CFR 51.166 that allow
the State to exempt or not apply certain requirements in certain
circumstances are adopted under the State's PSD Rule.\16\
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\14\ Changing the definition of ``building, structure, facility,
or installation'' effectively changes the definition of ``stationary
source'' for purposes of PSD permitting because ``stationary
source'' is defined as ``any building, structure, facility, or
installation which emits or may emit a regulated NSR pollutant.''
\15\ Also note that the North Carolina SIP prohibits certain
sources from causing an exceedance of an air quality standard or
contributing to a violation of such standards (see 15A NCAC 02D
.0401(c)), and includes a minor NSR construction permitting program
for new minor sources and minor modifications to existing sources
(see 15A NCAC 02Q .0300).
\16\ See the document entitled ``Call between Region 4 of the
Environmental Protection Agency (EPA) and the North Carolina
Department of Environmental Quality's Division of Air Quality
(NCDAQ) regarding 15A NCAC 02D .0530, Prevention of Significant
Deterioration,'' which is included in the docket for this proposed
action.
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Next, NCDAQ's paragraph .0530(r) provides procedures and
requirements for processing permit applications and incorporates EPA's
public notice provisions at 40 CFR 51.166(q). EPA issued a final rule
on October 18, 2016, that provided permitting authorities with the
ability to public notice draft permits and permitting decisions for
major sources, including for PSD through revisions to 40 CFR 51.166(q),
on a website identified by the reviewing authority as a possible
alternative to newspaper notices. See 81 FR 71613. NCDAQ's updated IBR
date would reference the modified language at 40 CFR 51.166(q) which
provides at (q)(2)(iii) that the required notifications ``may be made
on a website identified by the reviewing authority,'' and that the
selected notification method, the ``consistent noticing method,''
``shall be used for all permits subject to notice under this section
and may, when appropriate, be supplemented by other noticing methods on
individual permits.''
The ability to use a website as the exclusive method for
notification as an alternative to newspaper noticing for PSD permits
requires the reviewing authority to select electronic notification as
its ``consistent noticing method'' for all PSD permits. There is no
language in Rule .0530 or the SIP revision that identifies electronic
notification as NCDAQ's ``consistent noticing method'' for its PSD
permits nor is a website for such notices identified. Therefore,
although NCDAQ may include public notice via a website identified by
the State, NCDAQ must also continue to public notice all of these
permits via ``advertisement in a newspaper of general circulation in
each region in which the proposed source would be constructed'' until
the State submits a SIP revision selecting electronic notice as its
``consistent noticing method'' and EPA approves that revision.\17\
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\17\ See the document entitled ``Call between Region 4 of the
Environmental Protection Agency (EPA) and the North Carolina
Department of Environmental Quality's Division of Air Quality
(NCDAQ) Regarding 15A NCAC 02D .0530, Prevention of Significant
Deterioration,'' which is included in the docket for this proposed
action.
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Finally, the updated incorporation by reference of federal PSD
provisions captures EPA's updated air quality modeling procedures. As
part of EPA's April 15, 2020, conditional approval of infrastructure
SIP requirements for PSD for the 2015 8-hour ozone NAAQS, North
Carolina committed to update its PSD regulations to reference the most
current version of Appendix W to part 51. See 85 FR 20836. EPA approved
the most recent version of Appendix W on January 17, 2017 (82 FR 5182),
so North Carolina's incorporation by reference of the federal PSD rules
with a date of July 1, 2019, includes the provisions found in paragraph
51.166(l), Air Quality Models, which requires use of the latest
approved version of Appendix W when carrying out air quality modeling
for PSD purposes. Also note that the language discussed above that the
State adds to paragraph .0530(v) to include subsequent amendments and
editions of federal regulations referenced in 40 CFR 51.166 ensures
that North Carolina's PSD rule will automatically incorporate the most
up-to-date version of Appendix W because it is cross-referenced in 40
CFR 51.166(l). Therefore, EPA proposes to find that these changes
resolve EPA's April 15, 2020, conditional approval of North Carolina's
September 27, 2018, 2015 8-hour ozone infrastructure SIP submission
addressing PSD-related requirements of CAA sections 110(a)(2)(C),
110(a)(2)(D)(i)(II) (prong 3), and 110(a)(2)(J), and EPA is proposing
to convert the conditional approval to a full approval.
The changes to North Carolina's PSD regulation at Rule 2D .0530 are
either consistent with or more stringent than federal requirements and
would not interfere with any applicable requirement concerning
attainment or reasonable further progress or any other applicable CAA
requirement. For these reasons, as detailed above, EPA is proposing to
approve the aforementioned changes to 2D .0530 into the North Carolina
SIP.
B. 15A NCAC 02D .0544, Prevention of Significant Deterioration
Requirements for Greenhouse Gases
1. Revisions to the North Carolina GHGs PSD Rule
As part of the April 13, 2021, submission, North Carolina also
includes changes to the State's PSD requirements for Greenhouse Gases
(GHGs) found at Rule 02D .0544. The updates include clarification to
the applicability of the rule; changes to requirements for monitoring,
recordkeeping, and reporting; an update to the incorporation by
reference date of 40 CFR 51.166; and other minor changes such as
typographical changes.
In paragraph .0544(a), similar to paragraph .0530(a) in the
companion PSD rule, North Carolina moves the applicability provisions
that clarify the rule's connection to the federal PSD rules found at 40
CFR 51.166, from paragraph .0544(f) to .0544(a). Next, North Carolina
clarifies the compliance requirements for these sources by revising a
reference to 40 CFR 51.166 at paragraph .0544(f). Paragraph .0544(f)
previously stated that major sources and major modifications had to
comply with requirements in 40 CFR 51.166(i) and (a)(7) and in
51.166(j) through (o) and
[[Page 61553]]
(w). North Carolina modifies this sentence to read that these projects
shall comply with requirements in 51.166(i) and (a)(7) and in 51.166(j)
through (r) and (w), which now includes paragraphs (p)-(r). NCDAQ
already included the provisions of paragraphs 51.166(p)(1), (p)(3), and
(p)(4)-(7) regarding impacts to federal Class I areas at Rule 02D
.0530(q). Rule 02D .0544 did not expressly cover paragraph 40 CFR
51.166(p) because air quality related values in federal Class I areas
such as visibility are covered by Rule 02D .0530.\18\ However,
paragraph .0544(f) now also includes a reference to paragraph
51.166(p). This is not a true change to the North Carolina SIP because
if GHGs are regulated for PSD--because another regulated NSR pollutant
has triggered PSD--Class I protections also already apply wherever
there may be impacts, pursuant to Rule 02D .0530(q).
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\18\ See, e.g., ``PSD and Title V Permitting Guidance for
Greenhouse Gases'' U.S. Environmental Protection Agency, Office of
Air Quality Planning and Standards, Air Quality Policy Division,
Research Triangle Park, NC. EPA-457/B-11-001 (March 2011). Available
at: https://www.epa.gov/sites/default/files/2015-12/documents/ghgpermittingguidance.pdf.
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Additionally, 40 CFR 51.166(r)(1) is already covered by paragraph
.0544(m), and 40 CFR 51.166(r)(2) is already covered by paragraph
.0544(i). Moreover, paragraph .0544(n) is covered the requirements of
40 CFR 51.166(r)(6)-(7) in a different, but more stringent manner, and
this paragraph continues to outline different and more stringent
requirements than the federal minimum requirements. Paragraph .0544(n)
is discussed in more detail below. Paragraph .0544(l) provides
procedures and requirements for processing permit applications and also
covers 40 CFR 51.166(q) and continues to do so. Additionally, the
language previously approved at .0544(f) regarding the transition
provisions at 40 CFR 52.21(i)(11)(i) and (ii) and 40 CFR
52.21(m)(1)(vii)-(viii) is removed. These transition provisions
functioned for a short time \19\ as grandfathering provisions in moving
from total suspended particulates as the indicator of a PM NAAQS to
PM10 and have recently been removed from 40 CFR 52.21.\20\
EPA notes that this language would never have functioned in Rule 02D
.0544 because it does not relate to GHGs. Therefore, the removal of
this PM10 grandfathering language is clarifying in nature.
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\19\ The exemption at 40 CFR 52.21(i)(11)(i) for air quality
monitoring required at 40 CFR 52.21(m)(1)(i)-(iv) of PM10
functioned for PSD permit applications received on or before June 1,
1988. The exemption at 40 CFR 52.21(i)(11)(ii) relating to air
quality monitoring required at 40 CFR 52.21(m)(1)(iii)-(iv) and
(m)(3) functioned for PSD permit applications received after June 1,
1988, but no later than December 1, 1988. See 52 FR 24672 (July 1,
1987).
\20\ See 86 FR 37918 (July 19, 2021).
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The State then makes changes to paragraph .0544(h) to align with
paragraph .0530(j) by eliminating a reference to Rule 02Q .0302.
Previously, paragraph .0544(h) specified that Rule 02Q .0302 did not
apply to sources subject to Rule 02D .0544. However, Rule 02Q .0302,
Facilities Not Likely to Contravene Demonstration, which provided
exemptions from the requirement to obtain minor NSR construction
permits, is repealed and was never approved as part of the North
Carolina SIP. Therefore, there is no need to specify that this repealed
regulation is not applicable to sources that trigger PSD.
Next, North Carolina makes changes in paragraph .0544(n) that
conform to the changes made to companion PSD paragraph .0530(u),
described in greater detail above. Like the PSD changes discussed in
Section III.A.1 of this NPRM, the North Carolina regulations remain
more stringent than the federal requirements by (1) requiring all
projects utilizing the ``projected actual emissions'' approach to
document the project details and notify NCDAQ of the project,\21\ which
is more stringent than the documentation and initial recordkeeping
requirements of 51.166(r)(6)(i), and (2) requiring those projects which
calculate a ``projected actual emissions'' increase pursuant to 40 CFR
51.166(b)(40)(ii)(a) and (ii)(b), minus the baseline actual emissions,
without reference to the amount that is a significant net emissions
increase, of 50 percent or greater of the amount that is a significant
emissions increase for the regulated NSR pollutant to include
monitoring, recordkeeping, and reporting (consistent with
51.166(r)(6)(ii)-(v)) in the issued permit.
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\21\ Notification ``shall include: (1) a description of the
project; (2) identification of sources whose emissions could be
affected by the project; (3) the calculated projected actual
emissions and an explanation of how the projected actual emissions
were calculated, including identification of emissions excluded by
40 CFR 51.166(b)(40)(ii)(c); (4) the calculated baseline actual
emissions in Subparagraph (b)(1) of this Rule an explanation of how
the baseline actual emissions were calculated; and (5) any netting
calculations, if applicable.'' See 15A NCAC 02D .0544(n).
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The State then makes several changes to paragraph .0544(o). First,
North Carolina updates the incorporation by reference date of 40 CFR
51.166 from July 20, 2011, to July 1, 2019, and revises the direct link
to the new CFR version. Next, like changes made to 02D .0530(v), the
State adds a sentence to paragraph .0544(o) stating that ``[f]ederal
regulations referenced in 40 CFR 51.166 shall include subsequent
amendments and editions.'' This addition ensures that North Carolina's
PSD GHG rule will automatically incorporate updates to rules cross-
referenced in 40 CFR 51.166.
2. Revisions Based on the IBR Update
There are several changes included in the PSD program with the
change to the IBR date. The relevant changes related to GHGs in this
timeframe covered by the update are discussed in this section.
On January 2, 2011, GHG emissions were, for the first time, covered
by the PSD and title V operating permit programs. See 75 FR 17004
(April 2, 2010). To establish a process for phasing in the permitting
requirements for stationary sources of GHGs under the CAA's PSD and
title V programs, on June 3, 2010, EPA published a final rule entitled
``Prevention of Significant Deterioration and Title V Greenhouse Gas
Tailoring Rule'' (hereinafter referred to as the ``GHG Tailoring
Rule''). See 75 FR 31514. In Step 1 of the GHG Tailoring Rule, which
began on January 2, 2011, EPA limited application of PSD and title V
requirements to sources and modifications of GHG emissions, but only if
they were subject to PSD or title V ``anyway'' due to their emissions
of pollutants other than GHGs. These sources and modifications covered
under Step 1 are commonly referred to as ``anyway sources'' and
``anyway modifications,'' respectively.
In Step 2 of the GHG Tailoring Rule, which applied as of July 1,
2011, the PSD and title V permitting requirements extended beyond the
sources and modifications covered under Step 1 to apply to sources that
were classified as major sources based solely on their GHG emissions or
potential to emit GHGs. Step 2 also applied PSD permitting requirements
to modifications of otherwise major sources that would increase only
GHG emissions above the level in the federal PSD regulations. EPA
generally described the sources and modifications covered by PSD under
Step 2 of the Tailoring Rule as ``Step 2 sources and modifications'' or
``GHG-only sources and modifications.''
Subsequently, EPA published Step 3 of the GHG Tailoring Rule on
July 12, 2012. See 77 FR 41051. In this rule, EPA decided against
further phase-in of the PSD and title V requirements for sources
emitting lower levels of GHG emissions. Thus, the thresholds for
determining PSD and title V applicability based on emissions of GHGs
remained the same as established in Steps 1 and 2 of the Tailoring
Rule.
[[Page 61554]]
On June 23, 2014, the U.S. Supreme Court addressed the application
of stationary source permitting requirements to GHG emissions in
Utility Air Regulatory Group (UARG) v. EPA, 134 S. Ct. 2427 (2014). The
Supreme Court upheld EPA's regulation of GHG Step 1--or ``anyway''
sources--but held that EPA may not treat GHGs as air pollutants for the
purpose of determining whether a source is a major source (or is
undergoing a major modification) and thus require the source to obtain
a PSD or title V permit. Therefore, the Court invalidated the PSD and
title V permitting requirements for GHG Step 2 sources and
modifications.
In accordance with the Supreme Court's decision, on April 10, 2015,
the United States Court of Appeals for the District of Columbia Circuit
(D.C. Circuit) issued an Amended Judgment vacating the regulations that
implemented Step 2 of the GHG Tailoring Rule, but not the regulations
that implement Step 1 of the GHG Tailoring Rule. See Coalition for
Responsible Regulation, Inc. v. EPA, 606 Fed. Appx. 6, 7 (D.C. Cir.
2015). The Amended Judgment specifically vacated the EPA regulations
under review (including 40 CFR 51.166(b)(48)(v) and 40 CFR
52.21(b)(49)(v)) ``to the extent they require a stationary source to
obtain a PSD permit if greenhouse gases are the only pollutant (i) that
the source emits or has the potential to emit above the applicable
major source thresholds, or (ii) for which there is a significant
emissions increase from a modification.'' Id. at 7-8.
EPA subsequently promulgated a good cause final rule on August 19,
2015, entitled ``Prevention of Significant Deterioration and Title V
Permitting for Greenhouse Gases: Removal of Certain Vacated Elements.''
See 80 FR 50199 (August 19, 2015) (hereinafter referred to as the
``Good Cause GHG Rule''). The rule removed from the federal regulations
the portions of the PSD permitting provisions for Step 2 sources that
were vacated by the D.C. Circuit (i.e., 40 CFR 51.166(b)(48)(v) and
52.21(b)(49)(v)). EPA therefore no longer has the authority to conduct
PSD permitting for Step 2 sources, nor can the Agency approve
provisions submitted by a state for inclusion in its SIP providing this
authority. On October 3, 2016, EPA proposed to revise provisions in the
PSD permitting regulations applicable to GHGs to address the GHG
applicability threshold for PSD in order to fully conform with UARG and
the Amended Judgment, but those revisions have not been finalized. See
81 FR 68110 and 81 FR 81711.
North Carolina regulates GHG sources for the purposes of
implementing the PSD program at Rule 02D .0544, and the State's updated
IBR date of 40 CFR 51.166(b) includes this update to the definition of
``subject to regulation'' at (b)(48) included in EPA's August 19, 2015,
Good Cause GHG Rule. However, on August 8, 2019, EPA approved a January
12, 2018, SIP revision to modify the applicability procedures at Rule
02D .0544(a) to specify that a ``major stationary source or major
modification shall not be required to obtain a prevention of
significant deterioration (PSD) permit on the sole basis of its
greenhouse gases emissions.'' See 84 FR 38876. The intent and effect of
the January 12, 2018, SIP revision was to address the D.C. Circuit
court's vacatur of GHG-only or ``Step 2'' provisions in the federal PSD
regulations. Therefore, the North Carolina SIP already contains a
provision addressing the UARG decision, which vacated the ability to
regulate GHG-only sources under the PSD program.\22\ The change to the
definition of ``subject to regulation'' at 40 CFR 51.166(b)(48) made in
EPA's August 19, 2015, final rule is incorporated in the April 13,
2021, SIP revision, which aligns the North Carolina definitions with
the federal regulations and with North Carolina's approved
applicability procedures. See EPA's August 8, 2019, final action for
further details on how the January 12, 2018, SIP revision revised the
North Carolina PSD program for regulating GHGs.
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\22\ North Carolina supplemented its January 12, 2018, submittal
on March 4, 2019, to, among other things, exclude the incorporation
by reference of the provisions of the Biomass Deferral Rule. See 76
FR 43490 (July 20, 2011). For further discussion on the March 4,
2019, letter, refer to EPA's May 23, 2019, NPRM (84 FR 23750).
Therefore, EPA understands that North Carolina continues to not
adopt the Biomass Deferral Rule provisions in this IBR update of 40
CFR 51.166 provisions. EPA has since removed this Biomass Deferral
Rule language from the CFR. See 86 FR 37918 (July 19, 2021).
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Finally, similar to changes made to 02D .0530(v), the updated
incorporation by reference of federal PSD provisions captures EPA's
updated air quality modeling procedures. As part of EPA's April 15,
2020, conditional approval of infrastructure SIP requirements for PSD
for the 2015 8-hour ozone NAAQS, North Carolina committed to update its
PSD regulations to reference the most current version of Appendix W to
part 51. See 85 FR 20836. EPA approved the most recent version of
Appendix W on January 17, 2017 (82 FR 5182), so North Carolina's
incorporation by reference of the federal PSD rules with a date of July
1, 2019, includes the provisions found in paragraph 51.166(l), Air
Quality Models, which requires use of the latest approved version of
Appendix W when carrying out air quality modeling for PSD purposes.
Also note that the language discussed above that the State adds to
paragraph .0544(o) to include subsequent amendments and editions for
federal regulations referenced in 40 CFR 51.166 will automatically
incorporate the most up-to-date version of Appendix W because it is
cross-referenced in 40 CFR 51.166(l). Therefore, EPA proposes to find
that these changes resolve EPA's April 15, 2020, conditional approval
of North Carolina's September 27, 2018, 2015 8-hour ozone
infrastructure SIP submission addressing the PSD-related requirements
of element C, Prong 3, and element J, and EPA is proposing to convert
the conditional approval to a full approval.
The changes to North Carolina's PSD regulation for GHGs, 02D .0544,
are either consistent with or more stringent than federal requirements
and would not interfere with any applicable requirement concerning
attainment and reasonable further progress, or any other applicable CAA
requirement. For these reasons, as detailed above, EPA is proposing to
approve the aforementioned changes to Rule 02D .0544 into the North
Carolina SIP.
IV. Incorporation by Reference
In this document, EPA is proposing to include in a final EPA rule,
regulatory text that includes incorporation by reference. In accordance
with requirements of 1 CFR 51.5, and as discussed in Section III of
this preamble, EPA is proposing to incorporate by reference North
Carolina regulations 15A NCAC 02D .0530, ``Prevention of Significant
Deterioration,'' state effective on October 1, 2020, and .0544,
``Prevention of Significant Deterioration Requirements for Greenhouse
Gases,'' state effective on November 1, 2020.\23\
[[Page 61555]]
EPA has made, and will continue to make, these materials generally
available through www.regulations.gov and at the EPA Region 4 office
(please contact the person identified in the For Further Information
Contact section of this preamble for more information).
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\23\ EPA is not proposing to approve the October 1, 2020, state
effective version of Rule 02D .0530 to the extent the rule would
incorporate by reference 40 CFR 51.166(b)(2)(iii)(a) as of July 1,
2019. Instead, the version of 40 CFR 51.166(b)(2)(iii)(a) approved
into the SIP would remain March 15, 1996, with a state effective
date of November 21, 1996. See 64 FR 55831 (October 15, 1999). EPA
is not proposing to approve the October 2020, state effective
version of Rule 02D .0530 to the extent the rule would incorporate
by reference 40 CFR 51.166(i)(2). Instead, the version of 40 CFR
51.166(i)(2) approved into the SIP would remain July 1, 2014,
approved with a state effective date of September 1, 2017. See 83 FR
45827 (September 11, 2018). Finally, EPA is not proposing to approve
the October 1, 2020, state effective version of Rule 02D .0530 to
the extent the rule would incorporate by reference the following
federal provisions: 40 CFR 51.166(b)(2)(v), 51.166(b)(3)(iii)(d),
51.166(b)(53)-(56), 51.166(i)(11)(ii), and 51.166(y). If EPA
finalizes this action, the Agency will update the SIP table at 40
CFR 52.1770(c) to reflect these exceptions.
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V. Proposed Action
EPA is proposing to approve changes to the North Carolina SIP and
convert the conditional approval for element C, Prong 3, and element J,
for the 2015 8-hour ozone Infrastructure SIP to a full approval.
Specifically, EPA is proposing to approve changes to North Carolina
Rules 15A NCAC 02D .0530, Prevention of Significant Deterioration, and
.0544, Prevention of Significant Deterioration Requirements for
Greenhouse Gases.
VI. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. See 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. This action merely
proposes to approve state law as meeting federal requirements and does
not impose additional requirements beyond those imposed by state law.
For that reason, this proposed 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);
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 (Pub. L. 104-4);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically a 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).
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 proposed
rule does not have tribal implications as specified by Executive Order
13175 (65 FR 67249, November 9, 2000), nor will it impose substantial
direct costs on tribal governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.
(Authority: 42 U.S.C. 7401 et seq.)
Dated: September 30, 2022.
Daniel Blackman,
Regional Administrator, Region 4.
[FR Doc. 2022-21655 Filed 10-11-22; 8:45 am]
BILLING CODE 6560-50-P