Air Plan Approval; New Jersey; NOX SIP Call and Removal of CAIR, 71185-71188 [2024-19699]
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Federal Register / Vol. 89, No. 170 / Tuesday, September 3, 2024 / Rules and Regulations
SUPPLEMENTARY INFORMATION:
Throughout this document, whenever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
EPA.
The SUPPLEMENTARY INFORMATION
section is arranged as follows:
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R02–OAR–2024–0110, FRL–12093–
02–R2]
I. Background
II. What comments were received in
responses to the EPA’s proposed action?
III. What action is the EPA taking?
IV. Incorporation by Reference
V. Environmental Justice Considerations
VI. Statutory and Executive Order Reviews
Air Plan Approval; New Jersey; NOX
SIP Call and Removal of CAIR
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is approving the removal
of the New Jersey Clean Air Interstate
Rule (CAIR) nitrogen oxides (NOX)
Trading Program regulations from the
New Jersey State Implementation Plan
(SIP) and is conditionally approving the
removal of the New Jersey NOX Budget
Program regulations from the New
Jersey SIP. On August 23, 2018, the New
Jersey Department of Environmental
Protection (NJDEP) submitted a SIP
revision requesting the removal of the
State’s CAIR NOX Trading Program and
NOX Budget Program regulations from
the New Jersey SIP. NJDEP submitted a
supplement to the revision on May 31,
2024, that commits NJDEP to develop a
Memorandum of Agreement with the
EPA that indicates how the State of New
Jersey will maintain compliance with
the State’s NOX SIP Call obligations for
the types of large non-electricity
generating units (non-EGUs) that were
previously regulated under the New
Jersey NOX Budget Program.
DATES: This rule is effective on October
3, 2024.
ADDRESSES: The EPA has established a
docket for this action under Docket ID
Number EPA–R02–OAR–2024–0110, at
https://www.regulations.gov. All
documents in the docket are listed on
the https://www.regulations.gov
website. Although listed in the index,
some information is not publicly
available, e.g., Controlled Unclassified
Information (CUI) (formally referred to
as Confidential Business Information
(CBI)) or other information whose
disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available electronically through https://
www.regulations.gov.
FOR FURTHER INFORMATION CONTACT:
Fausto Taveras, Environmental
Protection Agency, Region 2, Air
Programs Branch, 290 Broadway, New
York, New York 10007–1866, at (212)
637–3378, or by email at
Taveras.Fausto@epa.gov.
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SUMMARY:
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I. Background
On July 18, 2024, the EPA proposed
to approve the removal of the New
Jersey Clean Air Interstate Rule (CAIR)
nitrogen oxides (NOX) Trading Program
regulations from the New Jersey State
Implementation Plan (SIP) and
proposed to conditionally approve the
removal of the New Jersey NOX Budget
Program regulations from the New
Jersey SIP. See 89 FR 58306.
In that proposed action, the EPA
proposed approval of the removal of the
New Jersey CAIR NOX Trading Program
(N.J.A.C. 7:27—Subchapter 30) from the
New Jersey SIP. The State rule
established allowance allocations for
use under the Federal CAIR trading
programs. Since the EPA no longer
administers the Federal CAIR trading
programs, the removal of Subchapter 30
from the SIP will have no consequences
for any sources’ operations or emissions
or for the attainment or maintenance of
the NAAQS in any area, now or in the
future.
In the July 2024 proposed rulemaking,
the EPA also proposed to conditionally
approve the removal of the New Jersey
NOX Budget Program (N.J.A.C. 7:27—
Subchapter 31) from the New Jersey SIP.
Although EPA no longer administers the
NOX Budget Trading Program and
approved the sunset provision of the
New Jersey NOX Budget program in a
previous action (see 72 FR 55672), New
Jersey has outstanding obligations under
the NOX SIP Call.1 Accordingly, on
March 7, 2024, and May 31, 2024,
NJDEP submitted letters committing the
State to submit an Memorandum of
Agreement (MOA) that will outline how
NJDEP will comply with the NOX SIP
Call for the types of non-EGUs
previously regulated by the New Jersey
NOX Budget Program by March 7, 2025.
In the State’s March 7, 2024,
commitment letter, New Jersey
1 New Jersey’s large non-EGUs no longer
participate in a NOX Ozone season trading program,
the NOX SIP Call regulations at 40 CFR 51.121(r)(2)
as well as anti-backsliding provisions at 40 CFR
51.905(f) and 40 CFR 51.1105(e) require the State
to meet its ongoing obligations under the NOX SIP
call with respect of these types of non-EGUs in an
alternative manner.
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committed to develop a MOA between
the EPA and NJDEP that outlines how
NJDEP will comply with the NOX SIP
Call, specifically for the types of nonEGUs that were previously regulated by
the New Jersey NOX Budget Program
(N.J.A.C. 7:27—Subchapter 31) and were
not included in the subsequent CAIR
FIP trading program.
Subsequently, on May 31, 2024, New
Jersey submitted an updated
commitment letter to revise and replace
the previous March 7, 2024, letter. This
revision occurred due to NJDEP
conducting further analysis to
determine what units would have been
classified as a non-EGU under the
applicability criteria of the New Jersey
NOX Budget Program (N.J.A.C. 7:21—
Subchapter 31), as in effect as of
September 30, 2008. As a result of this
analysis, the value of the non-EGU
budget was adjusted.2 The revised letter
adjusted the non-EGU budgets for the
affected units’ aggregated emissions
during the ozone season and revised the
date by which the State will submit the
MOA to the EPA. In New Jersey’s May
31, 2024, letter, the State commits to
submitting the MOA to the EPA by no
later than March 7, 2025. New Jersey
provided a date certain for purposes of
CAA 110(k)(4), which authorizes the
EPA to conditionally approval a plan
revision based on a commitment by the
State to adopt specific enforceable
measures by a date certain, but no later
than one year after the date of the plan
approval. As indicated in New Jersey’s
commitment letter, the EPA would take
action to incorporate by reference the
finalized MOA as an enforceable SIP
revision by no later than one year from
the date the EPA conditionally approves
the New Jersey SIP revision—Removal
of CAIR and NOX Budget Programs,
which was submitted on August 23,
2018.
The specific details of New Jersey’s
SIP Submittals, subsequent commitment
letter which outlines the content of the
forthcoming MOA, and the rationale for
the EPA’s final action are explained in
the EPA’s proposed rulemaking and are
not restated in this final action. For this
detailed information, the reader is
referred to the EPA’s July 18, 2024,
proposed rulemaking (89 FR 58306).
II. What comments were received in
response to the EPA’s proposed action?
In response to EPA’s July 10, 2024,
proposed rulemaking on New Jersey’s
2 NJDEP analysis determined that the natural gas
turbine unit located at cogeneration facility, EF
Kenilworth, was subject to the NOX Budget Program
as a small EGU (i.e., an EGU serving an electricity
generator with nameplate capacity of at least 15
MW but not greater than 25 MW).
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SIP revisions, the EPA received one
supportive comment during the 30-day
public comment period. The specific
comment may be viewed under Docket
ID number EPA–R02–OAR–2024–0110
on the https://www.regulations.gov
website.
Comment: A private citizen
commenter supports the EPA’s
proposed rule to approve the removal of
New Jersey’s CAIR program, as well as
the conditional approval of the removal
of the NOX Budget Program since, ‘‘. . .
the proposed rule aligns itself with the
Clean Air Act and acts in accordance
with the spirit of progress. The removal
of these programs will not adversely
affect air quality or compliance.’’
Response: The EPA acknowledges the
commenter’s support of the EPA’s
proposed rule.
This concludes our response to the
comments received. No changes have
been made to the final rule.
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III. What action is the EPA taking?
On August 23, 2018, NJDEP submitted
a SIP revision requesting that the EPA
update the New Jersey SIP to reflect the
removal of New Jersey’s CAIR NOX
Trading Program establishing the State’s
allowance allocations under the Federal
CAIR trading programs (Subchapter 30)
and New Jersey’s NOX Budget Program
(Subchapter 31) from the SIP. The State
rule provision sunsetting the State’s
NOX Budget Program was already
approved into the SIP by EPA in 2007,
and the State’s CAIR allowance
allocation rules have had no effect since
EPA discontinued administration of the
Federal CAIR trading programs after
2014. NJDEP repealed Subchapter 30
and Subchapter 31 on December 14,
2017.
As discussed previously in Section I,
NJDEP provided commitment letters to
the EPA on March 7, 2024 and May 31,
2024, committing to develop a MOA
between the EPA and the NJDEP that
outlines how NJDEP will comply with
the State’s obligations under the NOX
SIP Call for the types of non-EGUs that
were previously regulated by the New
Jersey NOX Budget Program and that
were not included in the subsequent
CAIR FIP trading program. Once
approved into the New Jersey SIP, the
MOA will ensure compliance with the
New Jersey non-EGU budget per 40 CFR
51.121(r). Specifically, the MOA will
serve as the enforceable mechanism for
ensuring the New Jersey SIP contains
enforceable limits and monitoring,
recordkeeping, and reporting
requirements to ensure the affected New
Jersey non-EGU units’ aggregated
emissions will not exceed a budget of
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745 tons per ozone season on an annual
basis for existing and new units.
In this final rule, the EPA approves
the removal of the New Jersey CAIR
NOX Trading Program (Subchapter 30)
from the New Jersey SIP. The State rule
established allowance allocations for
use under the Federal CAIR trading
programs. Because the EPA no longer
administers the Federal CAIR trading
programs, the removal of Subchapter 30
from the SIP will have no consequences
for any sources’ operations or emissions
or for the attainment or maintenance of
the NAAQS in any area, now or in the
future.
In this final rule, the EPA is also
conditionally approving the removal of
the New Jersey NOX Budget Program
(Subchapter 31) from the New Jersey
SIP. Although the EPA no longer
administers the NOX Budget Trading
Program and approved the sunset
provision of the New Jersey NOX Budget
program in a previous action (see 72 FR
55672), New Jersey has outstanding
obligations under the NOX SIP Call.
Accordingly, on May 31, 2024, NJDEP
submitted a letter committing NJDEP to
submit an MOA that will outline how
NJDEP will comply with the NOX SIP
Call for the types of non-EGUs
previously regulated by the New Jersey
NOX Budget Program by March 7, 2025.
Under CAA section 110(k)(4),
conditional approval is an option for
EPA SIP approvals based on a
commitment to adopt specific
enforceable measures by a date certain,
but no later than one year from the date
of approval. If the state fails to meet its
commitment within the specified date,
this approval is treated as a disapproval.
Since the MOA between NJDEP and
the EPA will be enforceable only when
approved by the EPA and codified
through incorporating by reference in
the EPA-approved statutes and
regulations in the New Jersey SIP at 40
CFR 52.1570, it will be necessary for the
EPA to take this action no later than one
year from the date of this conditional
approval.
Based on the State’s May 31, 2024,
commitment to submit a SIP revision by
March 7, 2025, addressing the identified
deficiency and the EPA taking action to
approve the MOA as an enforceable SIP
revision no later than one year from the
date the EPA finalizes this conditional
approval, the EPA is conditionally
approving the portion of the August 23,
2018, SIP revision requesting the
removal of the New Jersey NOX Budget
Program (Subchapter 31) from the New
Jersey SIP. EPA will take action to
approve or disapprove the MOA into the
New Jersey SIP when it is submitted to
the EPA as a SIP revision.
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However, if the State fails to submit
this revision, or if EPA does not approve
the MOA as an enforceable SIP revision
on or before 12 months from the date of
final approval of this action, this
conditional approval will become a
disapproval and the EPA will issue a
notice to that effect. If the conditional
approval becomes a disapproval, the
disapproval triggers the requirement for
EPA to issue a Federal Implementation
Plan (FIP) under CAA section 110(c) to
correct the deficiency.
Section 110(l) Demonstration
As stated in New Jersey’s May 2024
commitment letter, the State commits to
enter a Memorandum of Agreement
between the USEPA and the NJDEP that
outlines how NJDEP will comply with
the NOX SIP Call, specifically for the
types of non-electric generating units
(non-EGUs) that were previously
regulated by the New Jersey NOX Budget
Program (N.J.A.C. 7:27—Subchapter 31)
and that were not included in the
subsequent CAIR FIP trading program.
On June 19, 2007, New Jersey adopted
rules establishing allowance allocations
for the State’s EGUs participating in the
ozone season NOX trading program
established under the CAIR FIP but
excluded non-EGU industrial units from
its rulemaking. Under both the NOX
Budget Program and CAIR, the affected
units were required to monitor pursuant
to 40 CFR part 75. The EGUs that
remained in the CAIR trading program
continued to comply with the
monitoring requirements. However,
because the EPA approved the sunset of
the State’s NOX Budget Program
requirements in the SIP and the nonEGUs were not brought into the CAIR
FIP trading program, the non-EGUs did
not retain those monitoring
requirements. Instead, applicable nonEGUs relied on monitoring requirements
under New Jersey’s emission statement
program (N.J.A.C. 7:27–21), the State’s
various NOX RACT regulations (N.J.A.C.
7:27–19), and associated air permits to
continue to demonstrate compliance
with the 745 tons per ozone season
budget set under the NOX Budget
Program.
The MOA will serve to memorialize
an aggregate state-wide budget and
monitoring and reporting requirements
for the affected non-EGU units as well
as official annual ozone season NOX
reporting by the State to the EPA.
Specifically, the MOA will specify that
the non-EGU budget for the affected
units’ aggregated emission will not
exceed 745 tons per ozone season (May
1–September 30 of each year). To ensure
that non-EGUs satisfy the requirements
under the NOX SIP Call, the MOA will
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specify how the emission limits and
monitoring, recordkeeping, and
reporting requirements contained in
New Jersey’s SIP address the
requirements under 40 CFR 51.121(r)(2).
Specifically, the MOA will include a
demonstration that the total permitted
NOX emission limits for existing
applicable New Jersey non-EGUs does
not exceed 745 tons per ozone season
(May 1–September 30 of each year). The
MOA will also include demonstrations
that outline actual NOX emissions from
recent ozone seasons (tons/year) and
calendar years (tons/year) that were
gathered from the State’s Emission
Statement Program. Also, the MOA will
outline New Jersey’s SIP-approved
regulations and associated permit
requirements for non-EGU facilities
regarding continuous emission
monitoring and source emission testing.
These demonstrations will be
incorporated within the MOA, and the
MOA also provides for New Jersey to
continue to provide similar reports on
ozone season emissions to EPA for each
ozone season in perpetuity and to take
corrective measures should permitted
emissions limits be exceeded. Taken as
a whole, EPA believes that in concept,
the MOA as described (and if signed
and made effective) will address New
Jersey’s outstanding obligations under
the NOX SIP Call and demonstrates that
the removal of New Jersey’s NOX Budget
Program (7:27–31) from the SIP will
have no consequences for any sources’
operations or emissions or for the
attainment or maintenance of the
NAAQS in any area, now or in the
future. Furthermore, on October 1, 2007,
the EPA had approved a sunset
provision of New Jersey NOX Budget
Program. See 72 FR 55666. This
federally-approved sunset provision
ended New Jersey’s NOX Budget
Program for all sources that were
previously covered sources, beginning
in 2009. The EPA will take final action
to incorporate by reference New Jersey’s
MOA in a future rulemaking action.
IV. Incorporation by Reference
In this document, the EPA is
finalizing regulatory text that includes
incorporation by reference. The EPA is
finalizing the removal of Title 7,
Chapter 27, Subchapter 30, Clean Air
Interstate Rule (CAIR) NOX Trading
Program; Title 7, Chapter 27,
Subchapter 31, NOX Budget Program,
from the New Jersey SIP, which is
incorporated by reference in accordance
with the requirements of 1 CFR part 51,
and as discussed in Section I of this
preamble. EPA has made and will
continue to make the State
Implementation Plan generally available
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at the EPA Region 2 Office (please
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section of
this preamble for more information).
V. Environmental Justice
Considerations
New Jersey provided a supplement to
the SIP submission being finalized for
approval with this rulemaking on May
16, 2023. The supplemental submission
briefed the EPA on Environmental
Justice (EJ) considerations within New
Jersey by detailing the State’s programs
and initiatives addressing the needs of
communities with EJ concerns that have
been ongoing since 1998. Although New
Jersey included environmental justice
considerations as part of its SIP
submittal, the CAA and applicable
implementing regulations neither
prohibit nor require such an evaluation.
In its supplement, New Jersey
discussed how the State has been
addressing the needs of communities
with EJ concerns since 1998, including
assisting in the creation of the
Environmental Equity Task Force,
which later evolved into the
Environmental Justice Advisory Council
(EJAC). EJAC and its predecessor have
held regular meetings that include EJ
advocates and the New Jersey
Department of Environmental Protection
(NJDEP) to discuss and address issues of
concern.
New Jersey has also noted that the
State has implemented numerous
initiatives, collaborations,
Administrative Orders and Executive
Orders to address the needs and
concerns of overburdened communities.
New Jersey provided a timeline of the EJ
actions implemented by the State, both
prior to the SIP submittal on August 23,
2018, and subsequent to it, to note its
continued attention to environmental
justice in the State.
New Jersey’s Administrative Orders
(AO) and Executive Orders (E.O.)
include the State’s first EJ E.O. issued by
Governor James E. McGreevey in 2004
(E.O. No. 96), an EJ E.O. issued by
Governor Jon Corzine in 2009 (E.O. No.
131), an EJ AO issued by NJDEP
Commissioner Bob Martin in 2016 (AO
2016–08) and an EJ E.O. issued by
Governor Phil Murphy in 2018 (E.O. No.
23). Notably, U.S. Senator for New
Jersey, Cory Booker, introduced the first
Federal EJ bill in 2017 (S. 1996—
Environmental Justice Act of 2017).
Additionally, New Jersey also created
the ‘‘What’s In My Community?’’ 3 tool,
3 Access the mapping application for locating
facilities with an air permit registered with NJDEP’s
Division of Air Quality from their website at https://
njdep.maps.arcgis.com/app4s/webappviewer/index.
html?id=76194937cbbe46b1ab9a9ec37c7d709b.
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a GIS-mapping web application that
allows a user to see the air permits
issued in their community. The tool also
identifies overburdened communities,
schools, hospitals, and emergency
services. The public users can also see
measurements from air monitors and
generate a report when using the tool.
The EPA has reviewed this material
but has determined that conducting a
comprehensive EJ analysis is not
necessary in the context of this SIP
submission for the removal from the SIP
of New Jersey’s CAIR NOX Trading
Program and the State’s NOX Budget
Program, as the CAA and its applicable
implementing regulations neither
prohibit nor require such an evaluation
of EJ in relation to the relevant
requirements. Additionally, there is no
evidence suggesting that this action
contradicts the goals of E.O. 12898 or
that it will disproportionately harm any
specific group or have severe health or
environmental impacts.
However, the EPA expects that this
action, which assesses whether New
Jersey’s SIP adequately addresses
requirements under the NOX SIP Call for
affected non-EGUs, will generally have
a neutral impact on all populations,
including communities of color and
low-income groups. At the very least, it
will not worsen existing air quality.
In summary, the EPA concludes, for
informational purposes only, that this
final rule will not disproportionately
harm communities with environmental
justice concerns. New Jersey did
evaluate EJ considerations voluntarily in
its SIP submission, but the EPA’s
assessment of these considerations is
provided for context, not as the basis for
the action. The EPA is taking action
under the CAA independently of the
State’s EJ assessment.
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
CAA and applicable Federal regulations.
42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions,
EPA’s role is to approve state choices,
provided that they meet the criteria of
the CAA. Accordingly, this action
merely approves state law as meeting
Federal requirements and does not
impose additional requirements beyond
those imposed by state law. For that
reason, this final 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 14094 (88 FR
21879, April 11, 2023);
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• 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 subject to Executive Order
13045 (62 FR 19885, April 23, 1997)
because it approves a State program;
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001); and
• Is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
be inconsistent with the Clean Air Act.
In addition, this final rulemaking
action pertaining to New Jersey’s SIP
revision, is not approved to apply on
any Indian reservation land or in any
other area where the EPA or an Indian
Tribe has demonstrated that a Tribe has
jurisdiction. In those areas of Indian
country, the rule does not have Tribal
implications and will not impose
substantial direct costs on Tribal
governments or preempt Tribal law as
specified by Executive Order 13175 (65
FR 67249, November 9, 2000).
Executive Order 12898 (Federal
Actions to Address Environmental
Justice in Minority Populations and
Low-Income Populations, 59 FR 7629,
Feb. 16, 1994) directs Federal agencies
to identify and address
‘‘disproportionately high and adverse
human health or environmental effects’’
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of their actions on communities with
environmental justice (EJ) concerns to
the greatest extent practicable and
permitted by law. EPA defines EJ as
‘‘the fair treatment and meaningful
involvement of all people regardless of
race, color, national origin, or income
with respect to the development,
implementation, and enforcement of
environmental laws, regulations, and
policies.’’ EPA further defines the term
fair treatment to mean that ‘‘no group of
people should bear a disproportionate
burden of environmental harms and
risks, including those resulting from the
negative environmental consequences of
industrial, governmental, and
commercial operations or programs and
policies.’’
The NJDEP evaluated environmental
justice as part of its SIP submittal even
though the CAA and applicable
implementing regulations neither
prohibit nor require an evaluation. The
EPA’s evaluation of the NJDEP’s
environmental justice considerations is
described above in the section titled,
‘‘Environmental Justice
Considerations.’’ The analysis was done
for the purpose of providing additional
context and information about this
rulemaking to the public, not as a basis
of the action. The EPA is taking action
under the CAA on bases independent of
New Jersey’s evaluation of
environmental justice. In addition, there
is no information in the record upon
which this decision is based that is
inconsistent with the stated goal of E.O.
12898 of achieving environmental
justice for communities with EJ
concerns.
This action is subject to the
Congressional Review Act, and the EPA
will submit a rule report to each House
of the Congress and the Comptroller
General of the United States. This action
is not a ‘‘major rule’’ as defined by 5
U.S.C. 804(2).
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Under section 307(b)(1) of the Clean
Air Act, petitions for judicial review of
this action must be filed in the United
States Court of Appeals for the
appropriate circuit by November 4,
2024. Filing a petition for
reconsideration by the Administrator of
this final rule does not affect the finality
of this action for the purposes of judicial
review nor does it extend the time
within which a petition for judicial
review may be filed and shall not
postpone the effectiveness of such rule
or action. This action may not be
challenged later in proceedings to
enforce its requirements. (See section
307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Ozone, Reporting and
recordkeeping requirements, Volatile
organic compounds, oxides of nitrogen.
Authority: 42 U.S.C. 7401 et seq.
Lisa Garcia,
Regional Administrator, Region 2.
For the reasons set forth in the
preamble, 40 CFR part 52 is amended as
follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
1. The authority citation for part 52
continues to read as follows:
■
Authority: 42 U.S.C. 7401 et seq.
Subpart FF—New Jersey
§ 52.1570
[Amended]
2. In § 52.1570, the table in paragraph
(c) is amended by removing the entries
‘‘Title 7, Chapter 27, Subchapter 30’’
and ‘‘Title 7, Chapter 27, Subchapter
31.’’
■
[FR Doc. 2024–19699 Filed 8–30–24; 8:45 am]
BILLING CODE 6560–50–P
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03SER1
Agencies
[Federal Register Volume 89, Number 170 (Tuesday, September 3, 2024)]
[Rules and Regulations]
[Pages 71185-71188]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19699]
[[Page 71185]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R02-OAR-2024-0110, FRL-12093-02-R2]
Air Plan Approval; New Jersey; NOX SIP Call and Removal of CAIR
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: The Environmental Protection Agency (EPA) is approving the
removal of the New Jersey Clean Air Interstate Rule (CAIR) nitrogen
oxides (NOX) Trading Program regulations from the New Jersey
State Implementation Plan (SIP) and is conditionally approving the
removal of the New Jersey NOX Budget Program regulations
from the New Jersey SIP. On August 23, 2018, the New Jersey Department
of Environmental Protection (NJDEP) submitted a SIP revision requesting
the removal of the State's CAIR NOX Trading Program and
NOX Budget Program regulations from the New Jersey SIP.
NJDEP submitted a supplement to the revision on May 31, 2024, that
commits NJDEP to develop a Memorandum of Agreement with the EPA that
indicates how the State of New Jersey will maintain compliance with the
State's NOX SIP Call obligations for the types of large non-
electricity generating units (non-EGUs) that were previously regulated
under the New Jersey NOX Budget Program.
DATES: This rule is effective on October 3, 2024.
ADDRESSES: The EPA has established a docket for this action under
Docket ID Number EPA-R02-OAR-2024-0110, at https://www.regulations.gov.
All documents in the docket are listed on the https://www.regulations.gov website. Although listed in the index, some
information is not publicly available, e.g., Controlled Unclassified
Information (CUI) (formally referred to as Confidential Business
Information (CBI)) or other information whose disclosure is restricted
by statute. Certain other material, such as copyrighted material, is
not placed on the internet and will be publicly available only in hard
copy form. Publicly available docket materials are available
electronically through https://www.regulations.gov.
FOR FURTHER INFORMATION CONTACT: Fausto Taveras, Environmental
Protection Agency, Region 2, Air Programs Branch, 290 Broadway, New
York, New York 10007-1866, at (212) 637-3378, or by email at
[email protected].
SUPPLEMENTARY INFORMATION: Throughout this document, whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.
The Supplementary Information section is arranged as follows:
I. Background
II. What comments were received in responses to the EPA's proposed
action?
III. What action is the EPA taking?
IV. Incorporation by Reference
V. Environmental Justice Considerations
VI. Statutory and Executive Order Reviews
I. Background
On July 18, 2024, the EPA proposed to approve the removal of the
New Jersey Clean Air Interstate Rule (CAIR) nitrogen oxides
(NOX) Trading Program regulations from the New Jersey State
Implementation Plan (SIP) and proposed to conditionally approve the
removal of the New Jersey NOX Budget Program regulations
from the New Jersey SIP. See 89 FR 58306.
In that proposed action, the EPA proposed approval of the removal
of the New Jersey CAIR NOX Trading Program (N.J.A.C. 7:27--
Subchapter 30) from the New Jersey SIP. The State rule established
allowance allocations for use under the Federal CAIR trading programs.
Since the EPA no longer administers the Federal CAIR trading programs,
the removal of Subchapter 30 from the SIP will have no consequences for
any sources' operations or emissions or for the attainment or
maintenance of the NAAQS in any area, now or in the future.
In the July 2024 proposed rulemaking, the EPA also proposed to
conditionally approve the removal of the New Jersey NOX
Budget Program (N.J.A.C. 7:27--Subchapter 31) from the New Jersey SIP.
Although EPA no longer administers the NOX Budget Trading
Program and approved the sunset provision of the New Jersey
NOX Budget program in a previous action (see 72 FR 55672),
New Jersey has outstanding obligations under the NOX SIP
Call.\1\ Accordingly, on March 7, 2024, and May 31, 2024, NJDEP
submitted letters committing the State to submit an Memorandum of
Agreement (MOA) that will outline how NJDEP will comply with the
NOX SIP Call for the types of non-EGUs previously regulated
by the New Jersey NOX Budget Program by March 7, 2025.
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\1\ New Jersey's large non-EGUs no longer participate in a
NOX Ozone season trading program, the NOX SIP
Call regulations at 40 CFR 51.121(r)(2) as well as anti-backsliding
provisions at 40 CFR 51.905(f) and 40 CFR 51.1105(e) require the
State to meet its ongoing obligations under the NOX SIP
call with respect of these types of non-EGUs in an alternative
manner.
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In the State's March 7, 2024, commitment letter, New Jersey
committed to develop a MOA between the EPA and NJDEP that outlines how
NJDEP will comply with the NOX SIP Call, specifically for
the types of non-EGUs that were previously regulated by the New Jersey
NOX Budget Program (N.J.A.C. 7:27--Subchapter 31) and were
not included in the subsequent CAIR FIP trading program.
Subsequently, on May 31, 2024, New Jersey submitted an updated
commitment letter to revise and replace the previous March 7, 2024,
letter. This revision occurred due to NJDEP conducting further analysis
to determine what units would have been classified as a non-EGU under
the applicability criteria of the New Jersey NOX Budget
Program (N.J.A.C. 7:21--Subchapter 31), as in effect as of September
30, 2008. As a result of this analysis, the value of the non-EGU budget
was adjusted.\2\ The revised letter adjusted the non-EGU budgets for
the affected units' aggregated emissions during the ozone season and
revised the date by which the State will submit the MOA to the EPA. In
New Jersey's May 31, 2024, letter, the State commits to submitting the
MOA to the EPA by no later than March 7, 2025. New Jersey provided a
date certain for purposes of CAA 110(k)(4), which authorizes the EPA to
conditionally approval a plan revision based on a commitment by the
State to adopt specific enforceable measures by a date certain, but no
later than one year after the date of the plan approval. As indicated
in New Jersey's commitment letter, the EPA would take action to
incorporate by reference the finalized MOA as an enforceable SIP
revision by no later than one year from the date the EPA conditionally
approves the New Jersey SIP revision--Removal of CAIR and
NOX Budget Programs, which was submitted on August 23, 2018.
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\2\ NJDEP analysis determined that the natural gas turbine unit
located at cogeneration facility, EF Kenilworth, was subject to the
NOX Budget Program as a small EGU (i.e., an EGU serving
an electricity generator with nameplate capacity of at least 15 MW
but not greater than 25 MW).
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The specific details of New Jersey's SIP Submittals, subsequent
commitment letter which outlines the content of the forthcoming MOA,
and the rationale for the EPA's final action are explained in the EPA's
proposed rulemaking and are not restated in this final action. For this
detailed information, the reader is referred to the EPA's July 18,
2024, proposed rulemaking (89 FR 58306).
II. What comments were received in response to the EPA's proposed
action?
In response to EPA's July 10, 2024, proposed rulemaking on New
Jersey's
[[Page 71186]]
SIP revisions, the EPA received one supportive comment during the 30-
day public comment period. The specific comment may be viewed under
Docket ID number EPA-R02-OAR-2024-0110 on the https://www.regulations.gov website.
Comment: A private citizen commenter supports the EPA's proposed
rule to approve the removal of New Jersey's CAIR program, as well as
the conditional approval of the removal of the NOX Budget
Program since, ``. . . the proposed rule aligns itself with the Clean
Air Act and acts in accordance with the spirit of progress. The removal
of these programs will not adversely affect air quality or
compliance.''
Response: The EPA acknowledges the commenter's support of the EPA's
proposed rule.
This concludes our response to the comments received. No changes
have been made to the final rule.
III. What action is the EPA taking?
On August 23, 2018, NJDEP submitted a SIP revision requesting that
the EPA update the New Jersey SIP to reflect the removal of New
Jersey's CAIR NOX Trading Program establishing the State's
allowance allocations under the Federal CAIR trading programs
(Subchapter 30) and New Jersey's NOX Budget Program
(Subchapter 31) from the SIP. The State rule provision sunsetting the
State's NOX Budget Program was already approved into the SIP
by EPA in 2007, and the State's CAIR allowance allocation rules have
had no effect since EPA discontinued administration of the Federal CAIR
trading programs after 2014. NJDEP repealed Subchapter 30 and
Subchapter 31 on December 14, 2017.
As discussed previously in Section I, NJDEP provided commitment
letters to the EPA on March 7, 2024 and May 31, 2024, committing to
develop a MOA between the EPA and the NJDEP that outlines how NJDEP
will comply with the State's obligations under the NOX SIP
Call for the types of non-EGUs that were previously regulated by the
New Jersey NOX Budget Program and that were not included in
the subsequent CAIR FIP trading program. Once approved into the New
Jersey SIP, the MOA will ensure compliance with the New Jersey non-EGU
budget per 40 CFR 51.121(r). Specifically, the MOA will serve as the
enforceable mechanism for ensuring the New Jersey SIP contains
enforceable limits and monitoring, recordkeeping, and reporting
requirements to ensure the affected New Jersey non-EGU units'
aggregated emissions will not exceed a budget of 745 tons per ozone
season on an annual basis for existing and new units.
In this final rule, the EPA approves the removal of the New Jersey
CAIR NOX Trading Program (Subchapter 30) from the New Jersey
SIP. The State rule established allowance allocations for use under the
Federal CAIR trading programs. Because the EPA no longer administers
the Federal CAIR trading programs, the removal of Subchapter 30 from
the SIP will have no consequences for any sources' operations or
emissions or for the attainment or maintenance of the NAAQS in any
area, now or in the future.
In this final rule, the EPA is also conditionally approving the
removal of the New Jersey NOX Budget Program (Subchapter 31)
from the New Jersey SIP. Although the EPA no longer administers the
NOX Budget Trading Program and approved the sunset provision
of the New Jersey NOX Budget program in a previous action
(see 72 FR 55672), New Jersey has outstanding obligations under the
NOX SIP Call. Accordingly, on May 31, 2024, NJDEP submitted
a letter committing NJDEP to submit an MOA that will outline how NJDEP
will comply with the NOX SIP Call for the types of non-EGUs
previously regulated by the New Jersey NOX Budget Program by
March 7, 2025.
Under CAA section 110(k)(4), conditional approval is an option for
EPA SIP approvals based on a commitment to adopt specific enforceable
measures by a date certain, but no later than one year from the date of
approval. If the state fails to meet its commitment within the
specified date, this approval is treated as a disapproval.
Since the MOA between NJDEP and the EPA will be enforceable only
when approved by the EPA and codified through incorporating by
reference in the EPA-approved statutes and regulations in the New
Jersey SIP at 40 CFR 52.1570, it will be necessary for the EPA to take
this action no later than one year from the date of this conditional
approval.
Based on the State's May 31, 2024, commitment to submit a SIP
revision by March 7, 2025, addressing the identified deficiency and the
EPA taking action to approve the MOA as an enforceable SIP revision no
later than one year from the date the EPA finalizes this conditional
approval, the EPA is conditionally approving the portion of the August
23, 2018, SIP revision requesting the removal of the New Jersey
NOX Budget Program (Subchapter 31) from the New Jersey SIP.
EPA will take action to approve or disapprove the MOA into the New
Jersey SIP when it is submitted to the EPA as a SIP revision.
However, if the State fails to submit this revision, or if EPA does
not approve the MOA as an enforceable SIP revision on or before 12
months from the date of final approval of this action, this conditional
approval will become a disapproval and the EPA will issue a notice to
that effect. If the conditional approval becomes a disapproval, the
disapproval triggers the requirement for EPA to issue a Federal
Implementation Plan (FIP) under CAA section 110(c) to correct the
deficiency.
Section 110(l) Demonstration
As stated in New Jersey's May 2024 commitment letter, the State
commits to enter a Memorandum of Agreement between the USEPA and the
NJDEP that outlines how NJDEP will comply with the NOX SIP
Call, specifically for the types of non-electric generating units (non-
EGUs) that were previously regulated by the New Jersey NOX
Budget Program (N.J.A.C. 7:27--Subchapter 31) and that were not
included in the subsequent CAIR FIP trading program. On June 19, 2007,
New Jersey adopted rules establishing allowance allocations for the
State's EGUs participating in the ozone season NOX trading
program established under the CAIR FIP but excluded non-EGU industrial
units from its rulemaking. Under both the NOX Budget Program
and CAIR, the affected units were required to monitor pursuant to 40
CFR part 75. The EGUs that remained in the CAIR trading program
continued to comply with the monitoring requirements. However, because
the EPA approved the sunset of the State's NOX Budget
Program requirements in the SIP and the non-EGUs were not brought into
the CAIR FIP trading program, the non-EGUs did not retain those
monitoring requirements. Instead, applicable non-EGUs relied on
monitoring requirements under New Jersey's emission statement program
(N.J.A.C. 7:27-21), the State's various NOX RACT regulations
(N.J.A.C. 7:27-19), and associated air permits to continue to
demonstrate compliance with the 745 tons per ozone season budget set
under the NOX Budget Program.
The MOA will serve to memorialize an aggregate state-wide budget
and monitoring and reporting requirements for the affected non-EGU
units as well as official annual ozone season NOX reporting
by the State to the EPA. Specifically, the MOA will specify that the
non-EGU budget for the affected units' aggregated emission will not
exceed 745 tons per ozone season (May 1-September 30 of each year). To
ensure that non-EGUs satisfy the requirements under the NOX
SIP Call, the MOA will
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specify how the emission limits and monitoring, recordkeeping, and
reporting requirements contained in New Jersey's SIP address the
requirements under 40 CFR 51.121(r)(2). Specifically, the MOA will
include a demonstration that the total permitted NOX
emission limits for existing applicable New Jersey non-EGUs does not
exceed 745 tons per ozone season (May 1-September 30 of each year). The
MOA will also include demonstrations that outline actual NOX
emissions from recent ozone seasons (tons/year) and calendar years
(tons/year) that were gathered from the State's Emission Statement
Program. Also, the MOA will outline New Jersey's SIP-approved
regulations and associated permit requirements for non-EGU facilities
regarding continuous emission monitoring and source emission testing.
These demonstrations will be incorporated within the MOA, and the MOA
also provides for New Jersey to continue to provide similar reports on
ozone season emissions to EPA for each ozone season in perpetuity and
to take corrective measures should permitted emissions limits be
exceeded. Taken as a whole, EPA believes that in concept, the MOA as
described (and if signed and made effective) will address New Jersey's
outstanding obligations under the NOX SIP Call and
demonstrates that the removal of New Jersey's NOX Budget
Program (7:27-31) from the SIP will have no consequences for any
sources' operations or emissions or for the attainment or maintenance
of the NAAQS in any area, now or in the future. Furthermore, on October
1, 2007, the EPA had approved a sunset provision of New Jersey
NOX Budget Program. See 72 FR 55666. This federally-approved
sunset provision ended New Jersey's NOX Budget Program for
all sources that were previously covered sources, beginning in 2009.
The EPA will take final action to incorporate by reference New Jersey's
MOA in a future rulemaking action.
IV. Incorporation by Reference
In this document, the EPA is finalizing regulatory text that
includes incorporation by reference. The EPA is finalizing the removal
of Title 7, Chapter 27, Subchapter 30, Clean Air Interstate Rule (CAIR)
NOX Trading Program; Title 7, Chapter 27, Subchapter 31, NOX Budget
Program, from the New Jersey SIP, which is incorporated by reference in
accordance with the requirements of 1 CFR part 51, and as discussed in
Section I of this preamble. EPA has made and will continue to make the
State Implementation Plan generally available at the EPA Region 2
Office (please contact the person identified in the For Further
Information Contact section of this preamble for more information).
V. Environmental Justice Considerations
New Jersey provided a supplement to the SIP submission being
finalized for approval with this rulemaking on May 16, 2023. The
supplemental submission briefed the EPA on Environmental Justice (EJ)
considerations within New Jersey by detailing the State's programs and
initiatives addressing the needs of communities with EJ concerns that
have been ongoing since 1998. Although New Jersey included
environmental justice considerations as part of its SIP submittal, the
CAA and applicable implementing regulations neither prohibit nor
require such an evaluation.
In its supplement, New Jersey discussed how the State has been
addressing the needs of communities with EJ concerns since 1998,
including assisting in the creation of the Environmental Equity Task
Force, which later evolved into the Environmental Justice Advisory
Council (EJAC). EJAC and its predecessor have held regular meetings
that include EJ advocates and the New Jersey Department of
Environmental Protection (NJDEP) to discuss and address issues of
concern.
New Jersey has also noted that the State has implemented numerous
initiatives, collaborations, Administrative Orders and Executive Orders
to address the needs and concerns of overburdened communities. New
Jersey provided a timeline of the EJ actions implemented by the State,
both prior to the SIP submittal on August 23, 2018, and subsequent to
it, to note its continued attention to environmental justice in the
State.
New Jersey's Administrative Orders (AO) and Executive Orders (E.O.)
include the State's first EJ E.O. issued by Governor James E. McGreevey
in 2004 (E.O. No. 96), an EJ E.O. issued by Governor Jon Corzine in
2009 (E.O. No. 131), an EJ AO issued by NJDEP Commissioner Bob Martin
in 2016 (AO 2016-08) and an EJ E.O. issued by Governor Phil Murphy in
2018 (E.O. No. 23). Notably, U.S. Senator for New Jersey, Cory Booker,
introduced the first Federal EJ bill in 2017 (S. 1996--Environmental
Justice Act of 2017).
Additionally, New Jersey also created the ``What's In My
Community?'' \3\ tool, a GIS-mapping web application that allows a user
to see the air permits issued in their community. The tool also
identifies overburdened communities, schools, hospitals, and emergency
services. The public users can also see measurements from air monitors
and generate a report when using the tool.
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\3\ Access the mapping application for locating facilities with
an air permit registered with NJDEP's Division of Air Quality from
their website at https://njdep.maps.arcgis.com/app4s/webappviewer/?id=76194937cbbe46b1ab9a9ec37c7d709b.
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The EPA has reviewed this material but has determined that
conducting a comprehensive EJ analysis is not necessary in the context
of this SIP submission for the removal from the SIP of New Jersey's
CAIR NOX Trading Program and the State's NOX
Budget Program, as the CAA and its applicable implementing regulations
neither prohibit nor require such an evaluation of EJ in relation to
the relevant requirements. Additionally, there is no evidence
suggesting that this action contradicts the goals of E.O. 12898 or that
it will disproportionately harm any specific group or have severe
health or environmental impacts.
However, the EPA expects that this action, which assesses whether
New Jersey's SIP adequately addresses requirements under the
NOX SIP Call for affected non-EGUs, will generally have a
neutral impact on all populations, including communities of color and
low-income groups. At the very least, it will not worsen existing air
quality.
In summary, the EPA concludes, for informational purposes only,
that this final rule will not disproportionately harm communities with
environmental justice concerns. New Jersey did evaluate EJ
considerations voluntarily in its SIP submission, but the EPA's
assessment of these considerations is provided for context, not as the
basis for the action. The EPA is taking action under the CAA
independently of the State's EJ assessment.
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 CAA and applicable
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. Accordingly, this
action merely approves state law as meeting Federal requirements and
does not impose additional requirements beyond those imposed by state
law. For that reason, this final 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 14094 (88 FR 21879, April 11,
2023);
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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 subject to Executive Order 13045 (62 FR 19885,
April 23, 1997) because it approves a State program;
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001); and
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act.
In addition, this final rulemaking action pertaining to New
Jersey's SIP revision, is not approved to apply on any Indian
reservation land or in any other area where the EPA or an Indian Tribe
has demonstrated that a Tribe has jurisdiction. In those areas of
Indian country, the rule does not have Tribal implications and will not
impose substantial direct costs on Tribal governments or preempt Tribal
law as specified by Executive Order 13175 (65 FR 67249, November 9,
2000).
Executive Order 12898 (Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations, 59 FR 7629,
Feb. 16, 1994) directs Federal agencies to identify and address
``disproportionately high and adverse human health or environmental
effects'' of their actions on communities with environmental justice
(EJ) concerns to the greatest extent practicable and permitted by law.
EPA defines EJ as ``the fair treatment and meaningful involvement of
all people regardless of race, color, national origin, or income with
respect to the development, implementation, and enforcement of
environmental laws, regulations, and policies.'' EPA further defines
the term fair treatment to mean that ``no group of people should bear a
disproportionate burden of environmental harms and risks, including
those resulting from the negative environmental consequences of
industrial, governmental, and commercial operations or programs and
policies.''
The NJDEP evaluated environmental justice as part of its SIP
submittal even though the CAA and applicable implementing regulations
neither prohibit nor require an evaluation. The EPA's evaluation of the
NJDEP's environmental justice considerations is described above in the
section titled, ``Environmental Justice Considerations.'' The analysis
was done for the purpose of providing additional context and
information about this rulemaking to the public, not as a basis of the
action. The EPA is taking action under the CAA on bases independent of
New Jersey's evaluation of environmental justice. In addition, there is
no information in the record upon which this decision is based that is
inconsistent with the stated goal of E.O. 12898 of achieving
environmental justice for communities with EJ concerns.
This action is subject to the Congressional Review Act, and the EPA
will submit a rule report to each House of the Congress and the
Comptroller General of the United States. This action is not a ``major
rule'' as defined by 5 U.S.C. 804(2).
Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by November 4, 2024. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed and shall not postpone the effectiveness
of such rule or action. This action may not be challenged later in
proceedings to enforce its requirements. (See section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Ozone, Reporting and recordkeeping requirements, Volatile
organic compounds, oxides of nitrogen.
Authority: 42 U.S.C. 7401 et seq.
Lisa Garcia,
Regional Administrator, Region 2.
For the reasons set forth in the preamble, 40 CFR part 52 is
amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart FF--New Jersey
Sec. 52.1570 [Amended]
0
2. In Sec. 52.1570, the table in paragraph (c) is amended by removing
the entries ``Title 7, Chapter 27, Subchapter 30'' and ``Title 7,
Chapter 27, Subchapter 31.''
[FR Doc. 2024-19699 Filed 8-30-24; 8:45 am]
BILLING CODE 6560-50-P