Partial Approval and Disapproval of Air Quality Implementation Plans; Arizona; Regional Haze State Implementation Plan for the Second Implementation Period and Prong 4 (Visibility) for the 2015 Ozone and 2012 Particulate Matter Standards, 102744-102773 [2024-29508]
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102744 Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations
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Lisa M. Palluconi,
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Dated: November 21, 2024
Lisa M. Palluconi,
Acting Director, Office of Foreign Assets
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[FR Doc. 2024–29676 Filed 12–17–24; 8:45 am]
BILLING CODE 4810–AL–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2024–0005; FRL–11919–
02–R9]
Partial Approval and Disapproval of Air
Quality Implementation Plans; Arizona;
Regional Haze State Implementation
Plan for the Second Implementation
Period and Prong 4 (Visibility) for the
2015 Ozone and 2012 Particulate
Matter Standards
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is partially approving and
partially disapproving the regional haze
state implementation plan (SIP) revision
submitted by Arizona on August 15,
2022 (‘‘2022 Arizona Regional Haze
Plan’’), under the Clean Air Act (CAA)
and the EPA’s Regional Haze Rule
(RHR) for the program’s second
implementation period. Arizona’s SIP
submission was developed to address
the requirement that states must
periodically revise their long-term
strategies for making reasonable
progress towards the national goal of
preventing any future, and remedying
any existing, anthropogenic impairment
of visibility, including regional haze, in
mandatory Class I Federal areas. The
SIP submission also addresses other
applicable requirements for the second
implementation period of the regional
haze program. Within this action, the
EPA is also disapproving the visibility
transport prong of Arizona’s
infrastructure SIP submittals for the
2012 annual fine particulate matter
(PM2.5) and 2015 ozone National
Ambient Air Quality Standards
(NAAQS). The EPA is taking this action
pursuant to CAA sections 110 and
169A.
DATES: This rule is effective on January
17, 2025.
ADDRESSES: The EPA has established a
docket for this action under Docket ID
No. EPA–R09–OAR–2024–0005. All
documents in the docket are listed on
the https://www.regulations.gov
website. Although listed in the index,
some information is not publicly
SUMMARY:
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Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 102745
available, e.g., 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 through https://
www.regulations.gov, or please contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section for
additional availability information. If
you need assistance in a language other
than English or if you are a person with
a disability who needs a reasonable
accommodation at no cost to you, please
contact the person identified in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT:
Michael Dorantes, Geographic Strategies
& Modeling Section (AIR–2–2), Planning
& Analysis Branch, Air and Radiation
Division, EPA Region IX, 75 Hawthorne
Street, San Francisco, CA 94105; phone:
(415) 972–3934; email:
dorantes.michael@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document, ‘‘we,’’ ‘‘us’’
and ‘‘our’’ refer to the EPA.
Table of Contents
I. Background
A. Regional Haze Plan for the Second
Implementation Period
B. Prong 4 (Visibility) of the 2012 PM2.5
NAAQS and 2015 Ozone NAAQS
Infrastructure SIPs
II. Public Comments and EPA Responses
A. Comment Letter From Tri-State
B. Comment Letter From ADEQ
C. Comment Letter From the Chamber and
AMC
D. Comment Letter From TEP
E. Comment Letter From SRP
F. Community Sign-On Letter
G. Comment Letter From NPCA et al.
III. Final Action
IV. Statutory and Executive Order Reviews
I. Background
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A. Regional Haze Plan for the Second
Implementation Period
On August 15, 2022,1 the Arizona
Department of Environmental Quality
(ADEQ) submitted the 2022 Arizona
Regional Haze Plan. ADEQ
supplemented its SIP revision on
1 Letter dated August 15, 2022, from Daniel
Czecholinski, Director, Arizona Department of
Environmental Quality Air Quality Division, to
Martha Guzman, Regional Administrator, EPA
Region IX (submitted electronically August 15,
2022). On August 16, 2022, the EPA determined
that the SIP submittal met the completeness criteria
outlined in 40 CFR part 51, Appendix V. Letter
dated August 16, 2022, from Elizabeth Adams,
Director, Air and Radiation Division, EPA Region
IX, to Daniel Czecholinski, Director, Arizona
Department of Environmental Quality Air Quality
Division.
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August 25, 2023, with nonpoint source
rules (‘‘2023 Arizona Regional Haze
Rules Supplement’’).2 ADEQ made these
SIP submissions to address
requirements of the CAA’s regional haze
program pursuant to CAA sections 169A
and 169B and 40 CFR 51.308.
On May 31, 2024, the EPA published
a notice of proposed rulemaking
proposing partial approval and partial
disapproval of the 2022 Arizona
Regional Haze Plan SIP submission as
partially satisfying the regional haze
requirements for the second
implementation period contained in the
CAA and 40 CFR 51.308.3 We did not
propose to act on the 2023 Arizona
Regional Haze Rules Supplement.
The EPA is now approving the
elements of the 2022 Arizona Regional
Haze Plan related to requirements
contained in 40 CFR 51.308(f)(1), (f)(4)–
(6), and (g)(1)–(5). The EPA is
disapproving the elements of the 2022
Arizona Regional Haze Plan related to
requirements contained in 40 CFR
51.308(f)(2), (f)(3), and (i)(2)–(4). Our
proposed action and our responses to
comments in section II of this document
contain more information on the basis
for this rulemaking and on our
evaluation of the submittal.
B. Prong 4 (Visibility) of the 2012 PM2.5
NAAQS and 2015 Ozone NAAQS
Infrastructure SIPs
Arizona submitted its infrastructure
SIP submission for the 2012 PM2.5
NAAQS on December 11, 2015 (‘‘2015
PM2.5 I–SIP submittal’’).4 Arizona also
submitted its infrastructure SIP
submission for the 2015 ozone NAAQS
on September 24, 2018 (‘‘2018 Ozone I–
SIP submittal’’).5
Our May 31, 2024 proposed
rulemaking action proposed to
disapprove the prong 4 portions of
Arizona’s 2018 Ozone I–SIP submittal
and 2015 PM2.5 I–SIP submittal. The
EPA is now disapproving the Prong 4
elements of Arizona’s 2018 Ozone I–SIP
submittal and 2015 PM2.5 I–SIP
submittal. Our proposed action contains
more information on the basis for this
2 Letter dated August 21, 2023, from Daniel
Czecholinski, Director, Arizona Department of
Environmental Quality Air Quality Division, to
Martha Guzman, Regional Administrator, EPA
Region IX (submitted electronically August 25,
2023).
3 89 FR 47398.
4 Letter dated December 11, 2015, from Eric
Massey, Director, Air Quality Division, ADEQ, to
Jared Blumenfeld, Regional Administrator, EPA
Region IX.
5 Letter dated September 24, 2018, from Timothy
S. Franquist, Director, Air Quality Division, ADEQ,
to Michael Stoker, Regional Administrator, EPA
Region IX (submitted electronically September 24,
2018).
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rulemaking and on our evaluation of the
submittals.
II. Public Comments and EPA
Responses
The EPA’s May 31, 2024 proposed
rulemaking action provided a 30-day
public comment period that would have
ended on July 1, 2024. We received four
comments requesting an extension of
the comment period. On June 26, 2024,6
the EPA extended the comment period
for the proposed rulemaking action by
14 days in response to requests from
commenters. This action extended the
close of the comment period to July 15,
2024.
The EPA received an additional ten
unique comments, including one
anonymous comment,7 two comments
from private individuals,8 and comment
letters from Tri-State Generation and
Transmission Association, Inc. (‘‘TriState’’),9 ADEQ,10 the Arizona Chamber
of Commerce and Industry and the
Arizona Manufacturers Council (‘‘the
Chamber and AMC’’),11 Tuscon Electric
Power (TEP),12 the Salt River
Agricultural Improvement and Power
District (SRP),13 12 community
organizations (‘‘Community Sign-on
Letter’’),14 and Earthjustice on behalf of
the National Parks Conservation
Association, Sierra Club, and the
Coalition to Protect America’s National
Parks (‘‘NPCA et al.’’).15 The
anonymous comment and the comments
from the private individuals were
unrelated to our proposed rulemaking.
These three comments do not require a
response. We respond to the issues
raised in the seven remaining comment
6 89
FR 53372.
at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0014.
8 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0015 and
https://www.regulations.gov/comment/EPA-R09OAR-2024-0005-0019.
9 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0016.
10 ADEQ submitted its comment letter twice. The
letter is available at both https://
www.regulations.gov/comment/EPA-R09-OAR2024-0005-0017 and https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0018.
11 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0020.
12 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0021.
13 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0023.
14 Available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0022.
15 The comment letter and all Exhibits except for
Exhibits 24 and 60 are available at https://
www.regulations.gov/comment/EPA-R09-OAR2024-0005-0024. Exhibits 24 and 60, including an
emailed copy of the NPCA et al.’s comment letter,
are available at https://www.regulations.gov/
comment/EPA-R09-OAR-2024-0005-0025.
7 Available
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letters received on our proposed
rulemaking in this action.
A. Comment Letter From Tri-State
Sections I (‘‘Introduction’’), II
(‘‘Background Information on TriState’’), and III (‘‘Tri-State Supports the
Provisions of the Arizona Department of
Environmental Quality’s State
Implementation Plan Submittal for
which EPA has Proposed Approval’’) of
Tri-State’s comment letter either
provide background information or are
supportive of the EPA’s proposal and
therefore do not require a response in
our final action. We respond to sections
IV (‘‘The Partial Disapproval is Overly
Vague and Should Be Reproposed with
a Fulsome and Specific Explanation of
What EPA Finds Inconsistent with the
Clean Air Act and the Implementing
Regulations’’), V (‘‘Additional Emission
Reductions Are Inappropriate for
Springerville Unit 3’’), and VI (‘‘EPA’s
Reliance on the July 8, 2021,
Clarifications Memorandum Is
Inappropriate Because It Was Issued
Only Days Prior to the Regional Haze
State Implementation Plans Being Due’’)
of Tri-State’s comment letter below.
Comment A.1. Tri-State comments
that the proposed rule, specifically the
partial disapproval, is overly vague and
does not lend itself to the general public
being able to adequately understand
what the EPA finds objectionable
regarding the SIP submission. Tri-State
asserts that the EPA made broad
statements about divergences from the
Control Cost Manual and inadequacies
in four-factor analyses and that ‘‘it [is]
impossible to understand with certainty
the sources to which these overly broad
statements apply.’’ The commenter also
notes that the proposed rulemaking
action only gives limited examples of
what the EPA is referring to and asserts
that the EPA needs to clearly provide
where it has issues with the SIP revision
as it was submitted not just examples of
what it is concerned about. Specifically,
Tri-State states that the proposed
rulemaking action makes general
comments about ADEQ conducting
analyses for well-controlled sources to
further reduce emissions but makes no
reference to which sources that the EPA
finds to be lacking in this area. Tri-State
also comments that the vagueness of the
proposal is not consistent with the
cooperative nature of the CAA in the
EPA working with states.
Response A.1. We do not agree that
the proposal was overly vague or that
the basis for our proposed partial
disapproval was unclear. The proposal
provided a detailed summary of the
2022 Arizona Regional Haze Plan and
the EPA’s evaluation of the Plan with
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regard to each of the applicable
requirements of the CAA and the RHR.
With respect to the EPA’s partial
disapproval specifically, the proposal
laid out multiple reasons for the EPA’s
determination that the long-term
strategy did not fully meet the
requirements of 40 CFR 51.308(f)(2),
related to source selection, four-factor
analyses (specifically, controlled
emissions rates and deviations from the
Control Cost Manual), and control
determinations (specifically, the
application of cost thresholds, the use of
visibility as a factor to avoid controls,
and the mass-based emissions caps at
Springerville Generating Station
(SGS)).16 In each instance, we provided
at least one example of a unit to which
this reason applied.17 We also explained
why the disapproval of the long-term
strategy also necessitated disapproval of
the RPG and FLM consultation
elements.18
We disagree with the commenter’s
suggestion that it was necessary for the
EPA to specify the extent to which each
of the flaws identified by the EPA
applied to each unit considered by
ADEQ. The EPA’s role in reviewing SIPs
is to determine whether they meet all of
the applicable CAA requirements.19 In
evaluating whether a SIP revision (or a
portion thereof) meets all of the
applicable requirements, the EPA is not
required to separately evaluate and
discuss each of the thousands of pieces
of information, analyses and
determinations comprising the SIP
submission. Rather, the EPA may focus
on those specific elements of the SIP
revision that form the basis for our
determination that certain applicable
requirements are met and certain
applicable requirements are not met.
Therefore, in this instance, it was
reasonable for the EPA to summarize
our evaluation and cite to examples of
where the State’s documentation,
analyses, and determinations did not
meet CAA requirements, rather than
separately evaluating and discussing
every such instance throughout the SIP
revision.
For example, regarding source
selection, our proposal stated that:
ADEQ did not provide an adequate
justification for screening out certain sources
and units from conducting a four-factor
16 89
FR 47398, 47428–47432.
17 Id.
18 Id.
at 47432–47433 and 47435–47436.
CAA section 110(k)(3) (‘‘the Administrator
shall approve [a SIP] submittal as a whole if it
meets all of the applicable requirements of [the
CAA]. If a portion of the plan revision meets all the
applicable requirements of [the CAA], the
Administrator may approve the plan revision in
part and disapprove the plan revision in part’’).
19 See
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analysis on the basis that they are ‘effectively
controlled’ as part of its source selection
process. Specifically, in some cases, ADEQ
did not identify the controls for each
pollutant at each unit or process, the
associated limits, or where the controls/
limits currently exist in the Arizona SIP. In
other cases, ADEQ listed the controls, but did
not clearly explain why it is reasonable to
assume, without conducting a four-factor
analysis, that no additional controls would
be reasonable.
We then provided examples of
specific sources to which these concerns
applied. In addition, table 3 of the
proposal listed all of the units that
ADEQ screened out as ‘‘effectively
controlled’’ and includes the entirety of
ADEQ’s rationale for each unit.20 This
table clearly shows that for many of the
units, ADEQ did not list controls for one
or more of the three relevant pollutants
(NOX, SO2, and PM). Moreover, even for
those units where ADEQ did list this
information, it did not explain why it is
reasonable to assume, without
conducting a four-factor analysis, that
no additional controls would be
reasonable. Furthermore, our proposed
rulemaking action clearly stated that
ADEQ did not adequately explain
whether any of the existing controls for
facilities evaluated within the SIP
submittal were necessary for reasonable
progress and therefore a part of the
state’s long-term strategy. Therefore, it
was not necessary to specifically
identify each source that was deficient
in this respect because the deficiency
applied to every source determined to
be effectively controlled.
Finally, regarding the cooperative
nature of the CAA, we note that the EPA
worked extensively with ADEQ during
SIP development. EPA and ADEQ staff
met on a monthly basis beginning in
2019 and continuing through 2021 to
discuss the development of the Plan.
The EPA also provided informal written
feedback on various elements of the
Plan between 2019 and 2022. In these
communications, the EPA identified
many of the flaws that are the basis for
the partial disapproval, so ADEQ was
aware of the EPA’s concerns prior to the
EPA’s proposal.
In conclusion, based on the findings
discussed in our proposal and
elsewhere in this document, we find
that the long-term strategy in the 2022
Arizona Regional Haze Plan does not
meet the requirements of 51.308(f)(2)
and we are disapproving the Plan with
respect to this requirement. Therefore,
pursuant to CAA section 110(c), the
EPA will be required to develop a new
20 Consistent with their labeling in the Plan,
Appendix C.1, Table 147, these rationales appear
under the heading of ‘‘Comments.’’
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Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 102747
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long-term strategy as part of a FIP,
unless the EPA approves a subsequent
SIP submission that fully meets these
requirements. That long-term strategy
would necessarily include updated
source selection, four factor analyses,
and control determinations that address
the deficiencies we identified in the
Plan. We are available to work with
ADEQ following this final action to
develop a SIP revision, including these
elements.
Comment A.2. Tri-State asserted that
additional emissions reductions are
‘‘inappropriate’’ for Springerville
Generating Station (SGS) Unit 3. TriState made a few arguments in support
of this contention.
First, Tri-State noted that ADEQ
evaluated the currently installed NOX
emissions controls against technically
feasible emissions controls and
concluded that the current NOX
emissions controls constitutes best
available control technology (BACT) for
coal-fired electric generating units
(EGUs). For SO2, Tri-State indicated that
ADEQ’s analysis for SGS Unit 3 clearly
demonstrates that Unit 3’s emissions
ranged from 0.069 to 0.090 lb/MMBtu
on an annual basis and has
continuously complied with the
Mercury and Air Toxics Standard
(MATS) SO2 emissions standard of 0.20
lb/MMBtu, and therefore does not
warrant further emissions controls. TriState also noted language in the EPA’s
‘‘Guidance on Regional Haze State
Implementation Plans for the Second
Implementation Period’’ (‘‘2019
Guidance’’) 21 that describes scenarios
in which the EPA believes it may be
reasonable for a state not to select a
particular source for further analysis for
EGUs that have add-on flue gas
desulfurization (FGD) and that meets
the applicable alternative SO2 emissions
limit of the MATS rule for power plants.
Second, Tri-State noted the visibility
improvement at the Mount Baldy
Wilderness Area in the first planning
period, and that Arizona will have four
additional 10-year planning periods to
achieve the 1.3 deciview improvement
needed to achieve natural conditions.
Finally, Tri-State stated that its intent
is to retire SGS Unit 3 by September 15,
2031, and requested that the EPA
include in the final rule a provision to
allow sources to work with their state
regulatory agencies to adopt an
21 Guidance on Regional Haze State
Implementation Plans for the Second
Implementation Period. https://www.epa.gov/
visibility/guidance-regional-haze-stateimplementation-plans-second-implementationperiod. The EPA Office of Air Quality Planning and
Standards, Research Triangle Park (August 20,
2019).
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enforceable commitment to retire a unit,
such as through a permit condition, to
allow the source to forego any further
emissions control or reduction
requirements if a unit is retiring within
ten years of the Regional Haze SIP
approval.
Response A.2. We partially agree with
this comment. First, with respect to
NOX emissions at SGS Unit 3, ADEQ
noted in the Plan ‘‘[t]he current controls
([low-NOX burners (LNB), overfire air
(OFA) with selective catalytic reduction
(SCR)] represent the most effective NOX
control technologies for coal fired EGUs
and are estimated to achieve 85–95%
removal efficiency.’’ 22 We agree that the
existing LNB, OFA and SCR constitute
effective controls for NOX at SGS Unit
3. As described in our proposal and in
response B.1 of this document, existing
effective controls are generally
necessary to make reasonable progress
and must be included in the SIP, unless
the state provides a weight-of-evidence
demonstration to justify that the existing
effective controls are not necessary to
make reasonable progress. Because the
Arizona SIP does not include a NOX
emissions limit corresponding to these
controls for SGS Unit 3, the State should
have provided such demonstration.
Specifically, the State should have
considered whether SGS Unit 3 is
subject to an enforceable NOX emissions
limit that ensures its NOX emissions rate
will not increase. Without proper
justification that emissions of visibility
impairing pollutants will not increase, it
is unclear how reasonable progress is
being made within the State’s long-term
strategy for the second planning
period.23
Similarly, with respect to SO2
emissions at SGS Unit 3, we agree that,
as described in the 2019 Guidance, an
add-on FGD meeting the appliable
alternative SO2 emissions standard
under MATS may constitute an effective
control for SO2. However, as noted in
the previous paragraph, existing
effective controls are generally
necessary to make reasonable progress
and must be included in the SIP, unless
the state provides a weight-of-evidence
demonstration to justify that the existing
effective controls are not necessary to
make reasonable progress. Because the
Arizona SIP does not include a SO2
emissions limit corresponding to the
existing SO2 controls at SGS Unit 3, the
State should have provided such a
demonstration, including consideration
22 2022
Arizona Regional Haze Plan, p. 219.
CAA 169A(a)(1) ‘‘Congress hereby declares
as a national goal the prevention of any future, and
the remedying of any existing, impairment of
visibility in [Class I areas.]’’ (emphasis added).
23 See
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of whether SGS Unit 3 is subject to an
enforceable SO2 emissions limit that
ensures its SO2 emissions rate will not
increase.
Second, regarding the Mount Baldy
Wilderness Area, although we commend
the efforts in Arizona that contributed to
the noted visibility improvement at the
Mount Baldy Wilderness Area in the
first planning period, previous and
ongoing measures are not automatically
sufficient to ensure ongoing reasonable
progress. The regional haze
requirements of CAA sections 169A and
169B and 40 CFR 51.308 need to be
satisfied.24 In particular, the increment
of progress that is ‘‘reasonable progress’’
for a given implementation period is
determined through the four statutory
factors.25 While progress made in the
first implementation period, ongoing
emissions trends, and anticipated
changes in emissions may inform a
state’s regional haze planning process,
these circumstances alone do not satisfy
a state’s obligation to determine and
include in its SIP the measures that are
necessary to make reasonable progress
in the second planning period. We also
note that, while Mount Baldy is the
closest Class I area to SGS and therefore
has the highest Q/d (emissions in tons
per year divided by distance to an
affected Class I area in kilometers) value
(339) with respect to SGS,26 this does
not mean that Mount Baldy is the only
Class I area affected by emissions from
SGS. ADEQ did not specifically identify
all the Class I areas that may be affected
by emissions from each of the sources
it evaluated. Nonetheless, given that
SGS had a 2018 Q of 17,044 tons per
year (tpy) 27 and is located within 300
km of 15 different Class I areas,28 it is
likely to contribute to visibility
impairment at a number of Class I areas.
Finally, with respect to Tri-State’s
request regarding enforceable
shutdowns, we note that the EPA’s role
in acting on SIP submittals is to evaluate
whether they meet applicable CAA
24 See 64 FR 35714 (July 1, 1999), 35721–35722
for additional explanation as to the EPA’s
determination that emissions from all States
reasonably contribute to visibility impairment and
thus are subject to the regional haze regulations.
Additionally, in the 2017 RHR, the EPA
‘‘reiterat[ed] that the CAA requires States to
consider the four statutory factors . . . in each
implementation period to determine the rate of
progress towards natural visibility conditions that
is reasonable for each Class I area.’’ 82 FR 3078
(January 10, 2017), 3080.
25 40 CFR 51.308(f)(2)(i).
26 Plan Appendix C, p. 21, Table 1. Q is
calculated as the total 2018 annual facility-wide
NOX, SO2, and PM10 emissions in tpy, excluding
processes determined by ADEQ to be effectively
controlled.
27 Id.
28 79 FR 9318, 9360, Table 50 (February 18, 2014).
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requirement, not to establish new
requirements. Tri-State may choose to
work with ADEQ to establish
enforceable shutdowns as part of a
subsequent SIP revision. However, we
note that even if there were an
enforceable shutdown in 2031, this
would not automatically preclude the
unit from consideration under a fourfactor analysis.29
Comment A.3. Tri-State comments
that it was unreasonable for the EPA to
use the July 8, 2021 ‘‘Clarifications
Regarding Regional Haze State
Implementation Plans for the Second
Implementation Period’’ (‘‘2021
Clarifications Memo’’) as a basis for
disapproval of the 2022 Arizona
Regional Haze Plan. Tri-State indicated
that although ADEQ submitted its plan
over a year late on August 22, 2022,
ADEQ was over three years into the
process of developing the plan, working
with the Western Regional Air
Partnership, the EPA, other states,
Federal Land Managers (FLMs) and
members of the public, was nearly
complete and ready to go through the
Arizona rulemaking process when the
EPA published the 2021 Clarifications
Memo. Tri-State also noted that the
rulemaking process can take over a year
due to various tasks required.
Response A.3. The EPA disagrees that
it used the 2021 Clarifications Memo as
a basis for disapproving portions of the
2022 Arizona Regional Haze Plan.
Contrary to the commenter’s suggestion,
the EPA’s guidance, including the 2021
Clarifications Memo, is not the basis for
our disapproval. Rather, the partial
disapproval is based on the Plan’s
failure to satisfy the requirements of the
relevant portions of the RHR and CAA
sections 169A and 169B. We did cite the
guidance documents because these
documents provide helpful context
explaining the EPA’s interpretations of
the applicable statutory and regulatory
requirements against which we are
required to evaluate SIP submittals.
Commenters are free to disagree and
raise concerns with those
interpretations as part of the notice and
comment process on individual SIP
actions. However, in this instance, the
commenter does not appear to object to
any of the interpretations in the 2021
Clarifications Memo, only to the fact
that they were provided shortly before
the due date for the plans.
With regard to timing, we note that
the 2021 Clarifications Memo was
developed in response to issues that
29 See 2019 Guidance, pp. 20–21 (‘‘It may be more
challenging for a state to reasonably use a shorter
remaining useful life as the basis for not selecting
sources the further away the enforceable shutdown
date gets from 2028’’).
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EPA regions and other stakeholders had
raised regarding draft regional haze SIP
revisions that were already under
development by states.30 The 2021
Clarifications Memo therefore
necessarily came during the SIP
development process and, in
comparison to the SIP-specific feedback
previously provided by the EPA prior to
its issuance, was intended to ‘‘offer
feedback more broadly to help support
SIP development, submittal, review, and
action for the second planning
period.’’ 31 With regard to Arizona’s
Plan specifically, throughout the EPA’s
collaboration with ADEQ during early
engagement, EPA staff advised ADEQ of
many of the interpretations that would
be expressed in the 2021 Clarifications
Memo. Therefore, we do not agree that
it was improper for the EPA to cite to
the 2021 Clarifications Memo as further
explanation for why portions of the
2022 Arizona Regional Haze Plan did
not comply with the applicable
statutory and regulatory requirements.
B. Comment Letter From ADEQ
Sections I (‘‘Background’’) and XI
(‘‘Conclusion’’) of ADEQ’s comment
letter are informational and therefore do
not require a response. We respond to
sections II–X of ADEQ’s comment letter
below.
Comment B.1. ADEQ asserts that the
EPA’s changing guidance increased the
burden of ADEQ’s planning efforts by
introducing uncertainty and rework.
ADEQ noted delays between final
publication of the 2017 RHR and the
2019 Guidance, as well as later changes
to the EPA’s interpretation of the RHR
that came close to the plan submittal
deadline, including the 2021
Clarifications Memo. ADEQ asserts that
the state did not have the resources to
undertake the evaluation of existing
control measures, as noted in the 2021
Clarifications Memo, a process that
ADEQ states was unreasonably broadreaching and duplicative.
Response B.1. We disagree with
ADEQ’s assertions about the EPA’s
additional guidance increasing the
burden of ADEQ’s planning efforts by
introducing uncertainty and rework.
First and foremost, as stated previously
and throughout this notice, the EPA did
not rely on guidance as the basis for its
partial disapprovals. Rather, the 2019
Guidance and the 2021 Clarifications
Memo merely provide additional
context to the EPA’s interpretations of
the statutory and regulatory
requirements. Both the 2019 Guidance
and the 2021 Clarifications Memo were
30 2021
Clarifications Memo, p. 1.
31 Id.
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drafted to be used as tools by States in
the development of their second
planning period regional haze plans.
However, neither of these documents
were necessary for States to develop and
submit their SIP revisions.
Regarding the contents of the
guidance, we do not agree that the EPA
significantly changed its interpretations
in either the 2019 Guidance or the 2021
Clarifications Memo. The commenter
has not provided any examples of
interpretations that it believes were
changed under the 2019 Guidance and
provided only a single example from the
2021 Clarifications Memo, relating to
the section entitled, ‘‘Determining When
Existing Measures are Necessary for
Reasonable Progress.’’ We do not agree
that interpretations set forth in this
section of the 2021 Clarifications Memo
represented a significant change in
interpretation. Rather, they were
intended to clarify the following
statement in the 2019 Guidance:
If a state determines that an in-place
emission control at a source is a measure that
is necessary to make reasonable progress and
there is not already an enforceable emission
limit corresponding to that control in the SIP,
the state is required to adopt emission limits
based on those controls as part of its longterm strategy in the SIP via the regional haze
second planning period plan submission.32
Many states and other stakeholders
raised questions about this statement. In
response, as part of the 2021
Clarifications Memo, the EPA laid out in
further detail our interpretation of the
CAA and RHR regarding how to make
such a determination.
We also disagree, on multiple
grounds, with the commenter’s assertion
that the ‘‘EPA’s revised guidance
requires an unreasonably broadreaching review of all existing control
measures that are not separately
included in the regional haze plan to
evaluate whether those same measures
should be duplicated in the regional
plan to support reasonable visibility
progress.’’
First, the 2021 Clarifications Memo
did not establish any new requirements.
On the contrary, it clearly states that
‘‘[t]his memorandum does not change or
substitute for provisions or
requirements of the CAA or RHR, nor
does it create any new requirements.
Rather, this memorandum clarifies and
provides further information on the
existing statutory and regulatory
requirements.’’ 33 One of the key
requirements of the CAA and RHR is
that all measures that are necessary to
make reasonable progress must be
32 2019
33 2021
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Clarifications Memo, p. 2.
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included the SIP.34 However, neither
the CAA, the RHR, or the 2019
Guidance explain how to determine
whether an existing measure that results
from a four-factor analysis (or is used as
the basis to avoid such an analysis) is
necessary to make reasonable progress.
Based on questions received on this
subject during SIP development, it was
clear that further guidance on this
question would be helpful. Accordingly,
the EPA provided this guidance in the
2021 Clarifications Memo.35
Regarding ‘‘existing measures,’’ the
Memo explains:
When the outcome of a four-factor analysis
is that no new measures are reasonable for a
source, the source’s existing measures are
generally needed to prevent future visibility
impairment (i.e., to prevent future emission
increases) and thus necessary to make
reasonable progress. Measures that are
necessary to make reasonable progress must
be included in the SIP.
However, there may be circumstances in
which a source’s existing measures are not
necessary to make reasonable progress.
Specifically, if a state can demonstrate that
a source will continue to implement its
existing measures and will not increase its
emission rate, it may not be necessary to
require those measures under the regional
haze program in order to prevent future
emission increases.
Similarly, with regard to existing
‘‘effective controls’’ used to screen out
sources from a four-factor analysis:
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A decision to forgo a full four-factor
analysis based on a source’s existing effective
controls is equivalent to a determination that
no new measures are necessary to make
reasonable progress. In this scenario, existing
effective controls are, therefore, generally
necessary to make reasonable progress and
thus must be adopted into the regulatory
portion of the SIP. However, the state may
provide a weight-of-evidence demonstration
as described in Section 4.1 to justify that the
existing effective control is not necessary for
reasonable progress.
Thus, the 2021 Clarifications Memo
clarifies that, under the CAA and the
RHR, there is a general presumption that
existing measures resulting from a fourfactor analysis (or relied upon to avoid
such an analysis) are necessary to
prevent future visibility impairment and
therefore necessary to make reasonable
progress. Accordingly, states have the
option to submit all such measures into
the SIP (to the extent they are not
already approved into the SIP) without
further evaluation of whether the
measures are necessary to make
reasonable progress. Alternatively,
states may choose to provide a weightof-evidence demonstration that such
34 CAA
35 2021
169A(b)(2); 40 CFR 51.308(f)(2).
Clarifications Memo, pp. 8–9.
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measures are not necessary to make
reasonable progress. Importantly,
however, such a demonstration is
needed only where an enforceable
emissions limitation corresponding to
an existing measure has not already
been approved into the SIP and is not
being submitted for SIP approval as part
of the regional haze plan. Therefore, we
do not agree that a review of ‘‘all
existing control measures that are not
separately included in the regional haze
plan’’ is required.
Third, to the extent that a state
chooses to undertake such a
demonstration that existing measures
are not necessary to make reasonable
progress, we do not agree that it would
be duplicative. On the contrary, because
such a demonstration is necessary only
for measures for which emissions
limitations are not submitted into the
SIP, the state and the EPA need to
evaluate relevant evidence concerning
whether the source will continue to
implement its existing measures and
maintain its emissions rate in the
absence of SIP-approved requirements
to do so, to ensure that visibility
impairment does not increase.
In sum, we disagree with ADEQ’s
characterization of the contents of the
2021 Clarifications Memo and its role in
our partial approval and partial
disapproval of the Plan.
Comment B.2. ADEQ comments that
the EPA should not issue binding
decisions based on guidance alone
where the bases for disapproval are not
in the rule or statute. ADEQ cites to
statements in the 2019 Guidance and
2021 Clarifications Memo regarding
screening out of effectively controlled
sources and determinations of whether
existing controls are necessary to make
reasonable progress, as the examples of
guidance. Specifically, ADEQ asserts
that ‘‘[i]t was unreasonable for the EPA’s
clarification memo to issue these
additional specific barriers to a
determination that existing measures
were effective at a given source late in
the development of second round
regional haze plans through guidance,
and without additional notice and
comment.’’
Response B.2. We disagree that we
issued our proposed decision based on
guidance. Rather, the proposal action
clearly indicates that the partial
disapproval was based on failing to
satisfy the requirements of the relevant
portions of the RHR and CAA sections
169A and 169B, with citations to our
guidance as further explanation. See
Response A.3 for more explanation.
We also note that ADEQ’s comment
appears to conflate two separate
questions: first, whether its justification
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Fmt 4700
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for screening out a unit based on
existing effective emissions controls was
sufficient, and second, whether such
existing effective control measures are
necessary to make reasonable progress.
In our proposal, we discussed each of
these issues as two separate grounds for
our proposed partial disapproval with
respect to 40 CFR 51.308(f)(2).36 While
both questions apply to sources that are
screened out from a four-factor analysis
based on existing effective controls, they
are distinct. The first issue is further
addressed in Response B.3 of this
document, while the second is
addressed in Response B.1. Therefore,
we do not agree that the 2021
Clarifications Memo created any
additional barriers to a determination
that existing measures were effective at
a given source.
Comment B.3. ADEQ disagreed with
the EPA’s proposed determination that
Arizona failed to provide adequate
justification for deferring certain
emissions units from consideration.
ADEQ indicated that the state has the
flexibility to reasonably select a set of
sources for an analysis of control
measures, and that it did not exclude
entire facilities from consideration or
exempt sources that had previously
adopted BART or reasonable progress
controls, but rather excluded just the
emissions processes or units that
recently installed highly effective
controls from the calculation of the Q/
d value for that facility. ADEQ also
provided additional information
regarding effective controls in
Attachment A of its letter.
Response B.3. We agree that states
have flexibility to reasonably select a set
of sources for analysis of controls
measures. However, as described in our
proposal, we find that ADEQ’s approach
to screening out units from conducting
a four-factor analysis on the basis that
they are ‘‘effectively controlled’’ was not
adequately documented.37 Specifically,
in some cases, ADEQ did not identify
the controls for each pollutant at each
unit or process, the associated limits, or
where the controls and/or limits
currently exist in the Arizona SIP. In
other cases, ADEQ listed the controls,
but did not clearly explain why it is
36 See 89 FR 47398, 47428 (‘‘ADEQ did not
provide an adequate justification for screening out
certain sources and units from conducting a fourfactor analysis on the basis that they are ‘‘effectively
controlled’’ as part of its source selection process’’)
and 47431 (‘‘ADEQ has not addressed whether any
of the existing measures relied upon in its fourfactor analyses or its ‘effective controls’
determinations are necessary to make reasonable
progress and thus should be a part of the State’s
long-term strategy for the second planning
period.’’).
37 89 FR 47398, 47428.
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reasonable to assume, without
conducting a four-factor analysis, that
no additional controls would be
reasonable.38 Accordingly, ADEQ
should have identified where the
existing limits are found in the SIP or
FIP and clearly explained why no
additional controls would likely be
reasonable under a four-factor
reasonable progress analysis for the
second planning period. Without this
analysis and explanation, it is not clear
what is a part of Arizona’s long-term
strategy for the second planning period.
As noted in its comment, ADEQ
conducted its effective controls
screening on a unit-specific basis.
However, it did not do so on a
pollutant-specific basis. Rather, ADEQ
screened out entire units from further
evaluation for NOX, SO2, or PM10 if the
units met ADEQ’s screening criteria for
any one of these pollutants. We find that
this approach was unreasonable because
it resulted in the screening out of entire
units without consideration of whether
the unit had effective controls for all
three of the pollutants covered in
ADEQ’s long-term strategy. For
example, ADEQ screened out AEPCO
Apache Unit 3 and TEP Irvington
Generating Station (IGS) Unit 4 from
any further analysis because these units
were converted from coal to natural gas
under better-than-BART alternatives
during the first planning period.39 The
EPA acknowledges that fuel combustion
units that are required to combust
pipeline-quality natural gas are
generally considered to be effectively
controlled for SO2 and PM.40 However,
they are not necessarily effectively
controlled for NOX, based on burning
natural gas alone. Therefore, we find
that ADEQ has not provided adequate
justification for screening these units
out from an analysis of NOX controls.
Additionally, we appreciate the
documentation in Attachment A that
ADEQ provided in its attachment letter.
However, this information would need
to be part of a SIP revision subject to
review by the public and FLMs in order
for the EPA to consider it as part of the
long-term strategy. If ADEQ develops a
new SIP revision intended to remedy
the deficiencies discussed in our
proposed and final actions on the Plan,
38 See 40 CFR 51.308(f)(2)(i) (‘‘. . . The State
must include in its implementation plan a
description of the criteria is used to determine
which sources or groups of sources it evaluated and
how the four factors were taken into consideration
in selecting the measures for inclusion in its longterm strategy’’). See also 2021 Clarifications Memo,
p. 5; 2019 Guidance, p. 23.
39 2022 Arizona Regional Haze Plan, Appendix C,
Table 147.
40 See 2019 Guidance, p. 24.
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it may be appropriate to include this
information in that SIP revision.
Comment B.4. ADEQ asserts that,
despite indicating that flawed emissions
rates were used for some of ADEQ’s
analyses, the proposed action identified
one example of differing achievable
emissions rates for selective catalytic
reduction (SCR) and selective noncatalytic reduction (SNCR) controls for
SGS Units 1 and 2’s four factor analyses.
In this example, ADEQ used 0.060 lb/
MMBtu and 0.15 lb/MMBtu as
reasonable estimates of the achievable
rates at TEP SGS Units 1 and 2 for SCR
and SNCR, respectively.
For SCR, ADEQ additionally states the
study that the EPA cited for its
justification that SCR has been
demonstrated to achieve 0.05 lb/MMBtu
(or up to 90 percent reduction) was
published in 2005 and found that the 20
SCR systems examined in 2003
achieved NOX emissions rates between
0.04 and 0.07 lb/MMBtu.41 In addition,
ADEQ noted that EPA found 0.065 lb/
MMBtu as a ‘‘reasonable estimate of
average SCR performance’’ in its 2016
Regional Haze FIP action for the Salt
River Project Coronado Generating
Station Unit 1.
For SNCR, ADEQ additionally states
that the EPA did not provide a technical
citation for disagreeing with ADEQ’s use
of 0.15 lb/MMBtu for SNCR. ADEQ
noted that the proposed rule indicated
that ADEQ did not demonstrate why
source specific conditions would cause
SNCR on these units to achieve as little
as a 15 percent reduction. ADEQ noted
that Srivastava et al. found that while
smaller boilers (e.g., 76–78 MW units)
were able to achieve greater than 60
percent NOX reductions, larger boilers
(e.g., 500 MW units) ‘‘may be capable of
achieving reductions of only ∼30%.’’
ADEQ indicates that SGS Units 1 and 2
units have nameplate ratings of 425 MW
and would be expected to achieve less
reductions than smaller units. ADEQ
also points to the inlet concentration as
another consideration for achievable
emissions rates with post combustion
emissions control. Citing Srivastava et
al., ADEQ notes that the study found
that ‘‘in the absence of reliable SCR inlet
NOX data, the SCR efficiencies are
estimated using an inlet NOX level of
0.5 lb/106 Btu.’’ However, in the case of
SGS Units 1 and 2, the NOX
concentration in the exhaust from these
41 Ravi K. Srivastava, Robert E. Hall, Sikander
Khan, Kevin Culligan & Bruce W. Lani (2005)
Nitrogen Oxides Emission Control Options for CoalFired Electric Utility Boilers, Journal of the Air &
Waste Management Association, 55:9, 1367–1388,
DOI: 10.1080/10473289.2005.10464736. Available
at: https://doi.org/10.1080/
10473289.2005.10464736.
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Sfmt 4700
units is less than 100 parts per million
by volume (ppmv) with an assumed rate
of 0.174 lb/MMBtu and 0.178 lb/MMBtu
being used in ADEQ’s four factor
analysis cost calculations for Unit 1 and
Unit 2, respectively. Given the already
low NOX inlet concentration, an
achievable emissions rate of 0.15 lb/
MMBtu was determined to be
reasonable. ADEQ further noted that
additional information related to
achievable emissions rates for SNCR for
SGS Unit 1 and Unit 2 can be found in
Appendix K, Section II(J), Comment 10
of the 2022 Arizona Regional Haze Plan.
Response B.4. We acknowledge that
we only highlighted a single example of
flawed emissions rates in our
proposal—for NOX at SGS Units 1 and
2. However, as explained in response
A.1, in evaluating whether a SIP
revision (or a portion thereof) meets
each of these CAA requirements, the
EPA is not required to separately
evaluate and discuss each of the
thousands of pieces of information,
analyses and determinations comprising
the SIP submission. Rather, the EPA
may focus on those specific elements of
the SIP revision that form the basis for
our determination that certain
applicable requirements are met and
certain applicable requirements are not
met. In this instance, we focused on
these units because they are expected to
have the highest NOX emissions of any
units in the State (2,099 and 2,283 tpy
respectively) by 2028, so it is important
to carefully examine whether additional
NOX reductions from these units are
necessary to make reasonable progress.
Given this context, and for the reasons
outlined below, we do not agree with
ADEQ that it has adequately
documented the emissions rates
assumed in this analysis, which are a
critical component of a four-factor
analysis.
The emissions rate achievable by a
unit equipped with SCR is determined
by several parameters and technological
limitations. There are periods of
operation in which the SCR is not able
to operate, particularly during periods
of startup and shutdown.42 The SCR
emissions rate (lb/MMBtu) achievable
by a particular unit represents the
combination of two primary elements:
(1) the controlled NOX emissions rate
during periods of normal unit operation
when the SCR is able to operate, and (2)
the uncontrolled NOX emissions rate
42 Control Cost Manual, Section 4, Chapter 2
Selective Catalytic Reduction (June 2019), section,
2.2.1 Reduction Chemistry, Reagents, and Catalyst,
available at https://www.epa.gov/sites/default/files/
2017-12/documents/
scrcostmanualchapter7thedition_
2016revisions2017.pdf.
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during periods of startup and shutdown
when the SCR system cannot operate,
and result in unit emissions higher than
the SCR controlled emissions rate that
increase the unit’s overall emissions
rate.
With regard to the first element, the
2005 study is not the sole basis for our
finding that an overall emissions rate of
0.050 lb/MMBtu is achievable with SCR
on an annual average basis. There are
multiple instances of coal-fired units
installing SCR on a retrofit basis and
achieving 0.050 lb/MMBtu in practice
on an annual average basis.43 These
units are typically able to achieve this
overall level of control by being able to
operate at NOX annual emissions rates
at or below 0.050 lb/MMBtu based upon
periods of normal operation. Even
several of the units identified by ADEQ
operating in the annual average
emissions rate range of 0.055 to 0.065
lb/MMBtu are still achieving emissions
rates of 0.050 lb/MMBtu and lower
based upon periods of normal
operation.44 We consider this
information sufficient to establish that
an 0.050 lb/MMBtu emissions rate
warrants consideration as technically
feasible for coal fired units generally
during periods of normal operation,
absent source specific factors affecting
feasibility. We are not aware of
assertions by either ADEQ or TEP that
the Springerville units specifically
cannot achieve 0.050 lb/MMBtu when
operating with SCR during periods of
normal operation.45 Therefore, we find
that ADEQ should have considered a
controlled NOX emissions rate of 0.050
lb/MMBtu for SGS Units 1 and 2 when
operating with SCR during periods of
normal operation.
The majority of analysis performed by
ADEQ is relevant to the second element
and is intended to support a position
that, when the annual emissions rate
achievable during normal operations is
combined with emissions from the
number of startup/shutdown cycles
exhibited by SGS Units 1 and 2, an
annual average emissions rate of 0.06 lb/
MMBtu is what is reasonably achievable
for these units. We consider it
appropriate to account for the effect of
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43 See
Docket Item F–16 ‘‘SCR Tangentially fired
Coal.xlsx.’’
44 Id.
45 TEP has indicated that vendors have been
unwilling to provide manufacturer guarantees of
0.050 lb/MMBtu over the lifetime of the SCR
system. Because manufacturer guarantees include
contractual and financial considerations beyond
technical performance of the SCR system, we do not
consider an inability to secure a manufacturer
guarantee to constitute a determination that an
emission rate of 0.050 lb/MMBtu is not technically
feasible, particularly with regard to periods of
normal operation.
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startup/shutdown emissions on the
emissions rate achievable by the unit,
but disagree that the analysis provided
by ADEQ supports an annual average
emissions rate of 0.060 lb/MMBtu.
TEP’s four factor analysis and ADEQ’s
SIP submittal did not include startup/
shutdown history to support the
assertion that Springerville has more
startup/shutdown events than
comparable tangentially-fired coal fired
boilers. A review of Clean Air Markets
Program Data (CAMPD) emissions and
operating data over a 2021–2023
timeframe indicate that SGS Units 1 and
2 each experienced approximately 9 to
14 startup events per year. While we
acknowledge that some portion of SGS
baseline emissions consist of startup/
shutdown emissions that cannot be
controlled by an SCR system, the
substantial majority of baseline
emissions are attributable to emissions
during normal operation. We estimate
that approximately 97–98% of baseline
emissions are attributable to normal
operations that could be controlled by
SCR.46 Given that the majority of unit
emissions can be controlled by SCR to
0.050 lb/MMBtu or lower and that the
remaining 2–3 percent of operations are
characterized by low inlet SCR
emissions rates, we do not consider the
historical startup/shutdown operating
profile to support deviating to an 0.06
lb/MMBtu emissions rate on an annual
average basis.
ADEQ cites a limit of 0.065 lb/MMBtu
established for SRP Coronado Unit 1 in
a 2016 Regional Haze FIP action as
support for the use of an annual average
emissions rate of 0.060 lb/MMBtu. We
wish to clarify that the 0.065 lb/MMBtu
value was not the annual average
emissions rate used in cost calculations,
but was the emissions limit established
on a rolling 30-boiler operating day
(BOD) average, for Coronado Unit 1. We
relied upon an 0.050 lb/MMBtu annual
average emissions rate in developing
cost calculations for SCR,47 which is
46 See Docket Item F–17 [SGS CAMPD 2021–
23.xlsx]. To illustrate SCR control potential during
periods of normal operation, this spreadsheet is
based on the key assumption that emissions from
any day a unit did not operate a full 24 hours would
be attributable to startup/shutdown periods. An
hourly analysis would provide a more refined and
precise assessment, though we consider this
assumption to overestimate the emissions
attributable to startup/shutdown by including all
emissions from partial operating days towards
startup/shutdown.
47 See Docket Item EPA–R09–OAR–2012–0021–
0204 for cost calculation details. More information
related to establishing a 30 BOD limit relative to an
annual emissions rate can be found in our March
31, 2015 (80 FR 17010) proposed reconsideration,
including Docket Items EPA–R09–OAR–2015–
0165–0029 through –0033 for further details. We
note that SRP identified an SCR design target
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consistent with our action here. In
establishing a rolling 30–BOD limit for
Coronado Unit 1 in that action, we
acknowledged that upward revisions to
the SCR design rate achievable on an
annual average basis would be
appropriate in order to accommodate
the effect that multiple startup/
shutdown events would have to overall
unit emissions rates on an averaging
period that could be as short as 30 days.
Based upon startup/shutdown
frequency and projected controlled
emissions rate information provided by
SRP, we finalized 0.065 lb/MMBtu as an
appropriate emissions limit and
reasonable estimate of SCR performance
over a short-term period.48 Given that
the 0.065 lb/MMBtu limit reference here
corresponds to a different, shorter
averaging period, and was itself based
on an 0.05 lb/MMBtu annual average
emissions rate, we do not consider it
supportive of an 0.060 lb/MMBtu
annual average emissions rate.
For SNCR, we appreciate the
additional analysis provided in the
comment and citation to Appendix K
summarizing ADEQ’s responses to
public comments. We acknowledge that
low inlet NOX concentrations are a
general consideration in evaluating NOX
controls that can negatively impact
control efficiencies and achievable
controlled emissions rates. Therefore, in
order to further evaluate whether a rate
lower than 0.15 lb/MMBtu may be
achievable with SNCR at SGS Units 1
and 2 on an annual basis, we examined
CAMPD emissions data over a 2019–
2023 time period for SNCR-equipped
units comparable to SGS Units 1 and 2,
specifically filtering for tangentiallyfired coal units operating with SNCR on
a retrofit basis.49 We identified four
currently operating SNCR-equipped
units achieving NOX emissions rates
below 0.15 lb/MMBtu, ranging between
0.10 to 0.12 lb/MMBtu.50 These values
represent the highest performing SNCRequipped units, with the next best
performing units operating at emissions
rates of 0.15 lb/MMBtu and higher. At
least one of the four units we identified
has the capability to use natural gas,
during periods of normal operation as low as 0.03
lb/MMBtu for Coronado Unit 1, though we
acknowledge there are source specific differences
with the SGS units.
48 It is unclear to what extent a comparable 30–
BOD limit may be appropriate for the SGS units, but
we note that the SGS units appear to have
historically had at least as many startup/shutdown
events as Coronado Unit 1.
49 See Docket Item F–21, ‘‘SNCR Tangential Coal
Units.xlsx.’’
50 See Docket Item F–21. These units include
Boswell Energy Center (MN) Unit 4, Will County
(IL) Unit 4, and Jeffrey Energy Center (KS) Units 2
and 3.
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which could have the effect of lowering
emissions rates relative to units that do
not have this capability, such as SGS
Units 1 and 2.51 Based on the three
remaining units, each unit had
relatively low pre-SNCR emissions rates
that are comparable to SGS Unit 1 and
2, and each unit is able to achieve SNCR
emissions rates below 0.15 lb/MMBtu
and control efficiencies better than 15
percent. Neither ADEQ or TEP has
provided documentation to support a
claim that SGS Units 1 and 2
specifically cannot achieve an annual
emissions rate lower than 0.15 lb/
MMBtu with SNCR. Therefore, we find
that ADEQ should have considered a
NOX emissions rate of lower than 0.15
lb/MMBtu for SNCR at SGS Units 1 and
2.
We also note that this was one of
multiple flaws that formed the basis of
our determination that the State’s longterm strategy did not satisfy the
requirements of 40 CFR 51.308(f)(2),
including reasons related to source
selection and control determinations, as
detailed in our proposal and elsewhere
in this document. Therefore, even
assuming that a control efficiency of 15
percent for SNCR at SGS Units 1 and 2
was reasonable, it would not have
changed our determination that the
2022 Arizona Regional Haze Plan did
not satisfy the requirements of 40 CFR
51.308(f)(2).
Comment B.5. ADEQ disagrees with
the EPA’s determination that Arizona
deviated from the Control Cost Manual
without documentation as part of its
four factor analyses with regards to
remaining useful life calculations for the
El Paso Natural Gas (EPNG) Williams
facility and the use of source specific
interest rates without providing
adequate documentation in the control
measure analyses for the EPNG
Williams and Willcox facilities.
ADEQ indicates that the EPA Control
Cost Manual Section 4, Chapter 2, states
that ‘‘. . . a representative value of the
equipment life for SCR at power plants
can be considered as 30 years . . . [f]or
other sources, the equipment life can be
between 20 and 30 years.’’ ADEQ noted
that while it erroneously omitted this
citation from the EPNG Williams
Turbine analysis, the Control Cost
Manual citation and justification for use
of 25 years is the midpoint between the
20–30 year range for non-EGU SCR
systems and was included in the EPNG
Willcox SCR analysis for Turbines 1 and
51 Based on reported natural gas fuel usage, the
Boswell Energy Center appears to use natural gas
primarily as a startup fuel, but does periodically use
quantities of natural gas that suggest co-firing with
coal for electricity generation purposes.
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2.52 ADEQ also noted that it received
cost calculation spreadsheets utilizing a
25-year useful life for SCR for the EPNG
Williams Turbine 1 from the US Forest
Service.53
ADEQ also explains that in its
analysis of remaining useful life for
compressor engines at the EPNG
Williams facility, ADEQ documented
the assumptions and basis for using 20
years to amortize NOX controls in
Appendix C, Section C3.7.6.5, which
includes citations to the Control Cost
Manual and the EPA’s 2016 technical
support document for the Cross State
Air Pollution Rule for the 2008 Ozone
NAAQS.
Response B.5. We appreciate the
clarification regarding ADEQ’s
reasoning for use of a 25-year remaining
useful life for the EPNG Williams
turbines and 20 years for the EPNG
Williams engines. While there are
instances of combustion turbines with
operating lifetimes beyond 25 years
(with or without retrofit controls), we
acknowledge that EPA guidance such as
the Control Cost Manual has not
recommended a value beyond the 20–30
year range. ADEQ’s use of a 25-year
useful life represents the midpoint of
Control Cost Manual recommendations,
and therefore we agree that it is
consistent with the Control Cost
Manual. However, we note that the lack
of documentation of remaining useful
life for the units at Williams Compressor
Station was one of the many flaws that
we identified in the state’s long-term
strategy including reasons related to
source selection and control
determinations, as detailed in our
proposal and elsewhere in this
document. Therefore, this clarification
does not change our determination that
the 2022 Arizona Regional Haze Plan
did not satisfy the requirements of 40
CFR 51.308(f)(2).
Comment B.6. ADEQ disagrees with
the EPA’s determination that ADEQ did
not reasonably weigh the statutory
factors in reaching its control
determinations with regards to
application of cost thresholds. ADEQ
disagrees that Arizona’s consideration of
incremental cost effectiveness in its four
factor analyses were done in an
unreasonable manner. ADEQ cites to its
explanation that the incremental cost of
requiring low-emission combustion 2
(LEC 2) as opposed to Air-Fuel ratio
adjustments is $5,034/ton, which ADEQ
considered reasonable, and therefore
ADEQ found that LEC 2 is a more
52 2022
Arizona Regional Haze Plan, Appendix C,
Section C3.8.5.2, Page 146.
53 2022 Arizona Regional Haze Plan, Appendix L,
Section 4.2.4, Comment 14.
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appropriate control for Williams
Reciprocating Engine 1 (RECIP–1).54
ADEQ also asserts that it also
analyzed other determinations from the
regional haze first implementation
period besides the incremental cost
effectiveness value for the Nelson Lime
Plant action, and ADEQ provides this
information in Table 1 of its comment
letter.
Response B.6. We appreciate ADEQ’s
explanation about LEC 2 on RECIP–1,
but we note that ADEQ also rejected
LEC 3 on Williams RECIP–1, on the
grounds that the incremental costs of
these controls, relative to less stringent
controls, were excessive. In addition,
ADEQ did not provide or consider
incremental cost effectiveness values for
the same controls for the other units at
the same source (RECIP–2 or RECIP–5).
Although states may choose to consider
incremental costs in a reasonable
manner,55 we find it was unreasonable
for ADEQ to do so only for specific units
and controls, rather than in a consistent
manner across all units and controls.
Such inconsistent treatment of sources
without explanation is the ‘‘the
hallmark of arbitrary action.’’ 56
We also appreciate the addition of
Table 1 identifying other first
implementation period incremental cost
effectiveness decisions. However, this
information was not included in the
Plan and therefore not subject to review
by the public or FLMs. Accordingly, it
cannot be relied upon to meet the
requirement of 40 CFR 51.308(f)(2)(iii)
for States to document the technical
basis for their long-term strategy.
Moreover, even if the information had
been included in the Plan, it would not
have justified ADEQ’s inconsistent
consideration of incremental cost
effectiveness, for the reasons described
in our proposal and the preceding
paragraph.
Comment B.7. ADEQ states that,
contrary to the EPA’s contention, ADEQ
did not rely upon visibility benefits for
its control determinations, but rather
visibility impacts were reported for
some sources to give reference to the
reader as to the relative impact of these
sources or controls on visibility. ADEQ
also asserts that nothing in the CAA,
RHR, or 2019 Guidance prevents the
department from considering visibility
benefits as part of its analysis and stated
that ‘‘the ADEQ’s labeling of the
visibility benefits associated with
specific control scenarios as ‘small’
54 2022 Arizona Regional Haze Plan, Appendix C,
Section C3.7.6.2, page 129.
55 See, e.g., 2019 Guidance, p. 40.
56 Nat’l Parks Conservation Ass’n v. EPA, 788
F.3d 1134, 1145 (9th Cir. 2015).
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comports with similar language used by
the EPA in their regional haze
actions.’’ 57
Response B.7. We agree with ADEQ
that in its Response to Comments,
ADEQ stated that ‘‘[v]isibility impacts
were reported for some sources to give
reference to the reader as to the relative
impact of these sources or controls
considered on visibility. However, this
information was not considered in the
Department’s emissions control measure
determinations.’’ 58 However, this
assertion is contradicted by the language
of some of the control determinations in
the Plan. For example, in the NOX fourfactor analysis for SGS, ADEQ stated
that:
ADEQ does find visibility impacts a useful
consideration given the goal of the regional
haze program is to improve visibility in Class
I areas. As such, ADEQ reports modeled
visibility impacts in this documentation. The
small modeled visibility benefits associated
with the modeled hypothetical NOX emission
reduction supports the determination that no
additional NOX controls are necessary to
make reasonable progress towards natural
visibility at Class I areas during this
implementation period.59
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Similar language appears following
the SO2 four factor analysis for SGS 60
and in the summary of ADEQ’s NOX
reasonable progress determination for
IGS Unit 3.61 This language indicates
that ADEQ did consider visibility for
these units, and specifically, that it
weighed the ‘‘small modeled benefits’’
of controls in determining that no
additional NOX controls were warranted
at SGS Units 1 and 2 and IGS Unit 3,
and no more stringent SO2 controls were
warranted at SGS Units 1 and 2.
While states have the option to
consider visibility benefits, along with
the four statutory factors, in making
control determinations, if they choose to
do so, they must do so ‘‘in a reasonable
way that does not undermine or nullify
the role of the four statutory factors in
determining what controls are necessary
to make reasonable progress.’’ 62 In this
57 Citing e.g., ‘‘relatively small visibility benefits’’
in 79 FR 52419, 52439 (September 3, 2014).
58 Id., Appendix K, p. 9.
59 Plan, Appendix C, p. 221 (emphases added).
60 Id. at 234 (‘‘The small visibility benefits
associated with the modeled SO2 controls supports
the determination that CDS and wet FGD control
options are not necessary to make reasonable
progress towards natural visibility at Class I areas
during this implementation period.’’).
61 Id. at 197 (‘‘The small modeled visibility
benefits associated with additional controls support
the determination that no additional controls are
necessary to make reasonable progress towards
natural visibility at Class I areas during this
implementation period.’’).
62 2021 Clarifications Memo, p. 12 (quoting
Response to Comments on Protection of Visibility:
Amendments to Requirements for State Plans;
Proposed Rule at 186).
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case, we find it was not reasonable for
ADEQ to consider visibility benefits
only for specific sources and without
any explanation of what would
constitute a significant visibility benefit.
In the action cited by ADEQ where
the EPA considered ‘‘relatively small
visibility benefits,’’ 63 we were
comparing the relatively small benefits
of a control at one source to the
relatively larger visibility benefits
expected to result from controls at other
sources.64 In contrast, in the 2022
Arizona Regional Haze Plan, ADEQ did
not find any visibility benefits at any
source to be anything other than small.
Thus, as explained in our proposal
regarding SGS Units 1 and 2, ‘‘[i]n the
absence of any opportunities for larger
emissions reductions and corresponding
visibility benefits, we find that ADEQ’s
reliance on ‘small’ visibility benefits as
an additional justification for not
adopting more stringent controls at
these units is not persuasive.’’ 65
Finally, we note that, even assuming
that ADEQ did not consider visibility
benefits as part of its control
determinations for SGS Units 1 and 2,
we would still conclude that the
determinations were flawed for other
reasons. In particular, for NOX, ADEQ
did not adequately justify the control
efficiency used for SCR and SNCR, as
discussed in the proposal and response
B.4.66 For SO2, ADEQ unreasonably
rejected wet FGD on the basis of
incremental cost, and set mass-based
caps that will not ensure
implementation of the emissions
reduction measures that are necessary to
make reasonable progress at these units,
as discussed in the proposal and
response B.8. Furthermore, the lack of
clarity in the Plan regarding whether or
not ADEQ considered visibility benefits
in making its control determinations for
SGS Units 3 and 4 and IGS Unit 3,
indicates a lack of reasoned decision
making that also supports our
disapproval of the Plan’s long-term
strategy.
Comment B.8. ADEQ disagrees with
the EPA’s determination that ADEQ did
not reasonably weigh the statutory
factors in reaching its control
determinations with regards to three
issues noted in the proposed rule
concerning the mass-based emissions
caps at SGS and IGS.
First, ADEQ asserts that the EPA’s
rationale is arbitrary and capricious in
63 79
FR 52420, 52439.
e.g., id. at 52442 (referring to ‘‘large
visibility benefits) and 52458 (‘‘we consider this
visibility benefit sufficient to support installation of
controls.’’).
65 89 FR 47398, 47430.
66 89 FR 47398, 47428 (May 31, 2024).
64 See,
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regard to the rejection of wet FGD for
SGS Units 1 and 2. ADEQ states that the
use of emissions limits in lieu of
codifying specific control technologies
is a flexibility that the EPA itself used
in its reasonable progress determination
for Phoenix Cement Clarkdale (PCC).67
ADEQ asserts that the EPA established
an emissions limit for PCC that did not
require the installation of a particular
control technology but rather
compliance through other means of
meeting the limit.
Second, regarding the EPA’s
contention that spray dry absorber
(SDA) upgrades may still be cost
effective after the establishment of the
mass-based emissions caps, ADEQ
comments that this manner of analysis
is not contemplated in the four-factor
analysis as outlined in the RHR or the
2019 Guidance. ADEQ asserts that the
EPA has never applied this standard
whereby after the establishment of an
emissions limit based on the reductions
achievable from a considered control
technology that a State must revisit and
update the baseline emissions of its
four-factor analysis to reflect the new
emissions limit. ADEQ claims that for
its analysis of SGS, ADEQ did not select
a control scenario in its four-factor
analysis that included the imposition of
both emissions limits and the
installation of SDA upgrades, and
therefore, the EPA should not substitute
its judgment for ADEQ’s selection of
SDA upgrades as the evaluated control
measure for SGS Units 1 and 2 or reject
ADEQ’s determination based on an
arbitrary and circular four factor
analysis standard.
Third, ADEQ further disagrees with
the EPA’s assertion that the mass-based
emissions caps at SGS and IGS would
not meaningfully constrain the
emissions from one unit during periods
when the other unit is not operating and
argues that the rationale is arbitrary and
capricious. ADEQ notes that the EPA
referenced TEP’s 2023 Integrated
Resources Plan (IRP) and highlighted
TEP’s plans to retire SGS Unit 1 in 2027,
but states that as the operating scenarios
outlined in the IRP are not federally
enforceable conditions, ADEQ has no
basis for the consideration of these
future scenarios as part of its control
measure analysis and the establishment
of the mass-based emissions limits.
ADEQ states that the EPA should not
rely upon unenforceable and
hypothetical operating scenarios to
reject ADEQ’s reasonable progress
determinations.
Lastly, ADEQ disagrees with the
EPA’s rationale that IGS Unit 3’s mass67 79
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based emissions limits are not yet
enforceable and therefore are not an
appropriate basis for modifying the
baseline control scenario for a fourfactor analysis. ADEQ cites that for the
EPA’s BART determination for Arizona
Public Service (APS) Cholla generating
station, the EPA accepted a source
specific permit revision for APS Cholla
Unit 2 that included a trigger that was
conditional on the EPA’s approval of the
SIP revision that altered the remaining
useful life of the unit in ADEQ’s four
factor analysis.68 Therefore, ADEQ
concludes that the EPA should approve
ADEQ’s reasonable progress
determination for IGS Unit 3.
Response B.8. We disagree with
ADEQ’s comments arguing that the
EPA’s justification for disapproving the
reasonable progress determinations for
SGS and IGS as it relates to the massbased emissions caps at SGS and IGS
was improper.
First, we wish to clarify that we do
not object to the use of numeric
emissions limitations as a means to
implement control determinations.
Indeed, CAA section 169A(b)(2)
specifically requires the long-term
strategy to include ‘‘enforceable
emissions limitations, compliance
schedules, and other measures that are
necessary to make reasonable progress.’’
As explained in our proposal:
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The amount of progress that is ‘‘reasonable
progress’’ is based on applying the four
statutory factors in CAA section 169A(g)(1) in
an evaluation of potential control options for
sources of visibility impairing pollutants,
which is referred to as a ‘‘four-factor’’
analysis. The outcome of that analysis is the
emissions reduction measures that a
particular source or group of sources needs
to implement to make reasonable progress
towards the national visibility goal. . . .
Such measures must be represented by
‘‘enforceable emissions limitations,
compliance schedules, and other measures’’
(i.e., any additional compliance tools) in a
state’s long-term strategy in its SIP.69
We find that the mass-based
emissions caps set for SGS do not
represent the emissions reduction
measures that were the outcome of the
state’s four-factor analysis for the
reasons described in our proposal 70 and
herein. Therefore, these caps do not
meet the requirements of 169A(b)(2) and
(g)(1), or the corresponding provisions
of the RHR.
Regarding PCC, we agree that in the
EPA’s reasonable progress
determination for PCC in the first
implementation period, the EPA
established a mass-based emissions
68 81
FR 46852, 46860 (July 19, 2016).
FR 47398, 47402–47403.
70 89 FR 47398, 47430.
69 89
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limitation for NOX. However, the
circumstances between PCC and SGS
Units 1 and 2 differ in important ways.
The limit for PCC was set pursuant to
40 CFR 51.308(d)(3), which required the
long-term strategy for the first
implementation period to ‘‘include
enforceable emissions limitations,
compliance schedules, and other
measures as necessary to achieve the
reasonable progress goals established by
States having mandatory Class I Federal
areas.’’ 71 In this instance, the Class I
areas primarily affected by emissions
from PCC were in Arizona,72 and the
emissions reductions from PCC were
reflected in the applicable RPGs for
these areas by scaling of visibility
extinction components in proportion to
changes in total annual emissions.73
Under these circumstances, an annual
mass-based emissions limit
corresponding to the level of annual
emissions reductions assumed in the
RPG calculations was sufficient to meet
the applicable requirement for an
emissions limit ‘‘as necessary to
achieve’’ the relevant RPGs.
In contrast, for the second planning
period, the EPA clarified in 40 CFR
51.308(f)(2) that ‘‘the long-term strategy
must include the enforceable emissions
limitations, compliance schedules, and
other measures that are necessary to
make reasonable progress, as
determined pursuant to (f)(2)(i) through
(iv).’’ 40 CFR 51.308(f)(i) in turn
requires the state to ‘‘evaluate and
determine the emission reduction
measures that are necessary to make
reasonable progress by considering’’ the
four statutory factors. Thus, the revised
rule clarifies that the long-term strategy
must include emissions limitations,
compliance schedules, and other
measures representing the emissions
reduction measures that the state
determined to be necessary to make
reasonable progress, considering the
four statutory factors.
The EPA provided recommendations
on the appropriate form of such
emissions limitations and other
measures in the 2019 Guidance and the
Clarifications Memo. Specifically, the
2019 Guidance recommends the use of
throughput-based limits, rather than
mass-based limits (i.e., ‘‘caps’’) for
emissions limitations to implement
measures necessary for reasonable
progress in most instances.74 The
Guidance notes that mass-based limits
71 40
CFR 51.308(d)(3) (emphasis added).
79 FR 9318, 9354 Table 41 (showing
impacts on Arizona I class I areas).
73 79 FR 52420, 52468–52469; FIP_RPG_
estimates.xlsx.
74 2019 Guidance p. 44.
72 See
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are allowed under the RHR, but explains
that, ‘‘[i]f the state has determined,
independent of the forecasted operating
level, that operation of the emission
control equipment . . . is necessary to
make reasonable progress, a mass-based
emission limit may not be
appropriate.’’ 75 The Clarifications
Memo also reaffirms that ‘‘whether for
new or existing measures . . . an
emission limit . . . should be in the
form of the emission rate achieved when
implementing those measures (e.g.,
pounds per million British thermal
units or lbs/MMBtu, pounds per hour or
lbs/hr, or pounds per ton or lbs/ton of
produced material).’’ 76
With regard to SGS 1 and 2, ADEQ
concluded, based on a four-factor
analysis that, ‘‘it is reasonable to require
TEP to upgrade the current SDA
systems’’ 77 and did not indicate that
this determination was conditioned on
a particular level of operation.
Therefore, ADEQ should have set limits
in the form of the emissions rates
achieved when implementing SDA
upgrades, e.g., lb/MMBtu limits, or
should have provided a rationale for
why the mass-based limits, which could
be met without any control upgrades,
nonetheless represent SDA upgrades.
We also note that the mass-based limit
at PCC was for a single unit, meaning
that it necessarily constrained the
emissions from that unit on an annual
basis. In contrast, the mass-based limit
at SGS Units 1 and 2 were set across two
units. Accordingly, if one unit ceases to
operate, the limits would not
meaningfully constrain emissions from
the other unit. In addition, ADEQ
rejected more stringent controls at SGS
Units 1 and 2 based on its
‘‘determination that another viable
reasonable control exists to reduce SO2
emissions from Units 1 & 2 (upgraded
SDA).’’ In contrast, the EPA did not
reject any more stringent controls for
PCC based on incremental cost
effectiveness. Furthermore, the cap at
PCC was intended, in part, to address
concerns raised during consultation
with the facility’s owner, the Salt River
Pima Maricopa Indian Community
(SRPMIC).78 No similar considerations
exist with respect to SGS Units 1 and 2.
Therefore, we find that the
circumstances concerning the PCC
75 Id.
pp. 44–45.
Clarifications Memo, p. 11.
77 Plan Appendix C, p. 232.
78 79 FR 9318, 9366 (‘‘An annual cap would allow
SRPMIC to delay installation of controls until the
Plant’s production returns to pre-recession levels
and would thus help to address the Community’s
concerns about the budgetary impacts of control
requirements.’’)
76 2021
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mass-based cap are distinguishable from
those concerning SGS Units 1 and 2.
Second, regarding our finding that
SDA upgrades would be cost effective
after the establishment of the massbased emissions caps, we disagree that
we substituted our judgment for ADEQ’s
by arbitrarily rejecting ADEQ’s
determination based on a circular fourfactor analysis standard. Contrary to
ADEQ’s suggestion, we did not state that
ADEQ was required to revisit and
update the baseline emissions of its
four-factor analysis to reflect the new
emissions limitation. However, we note
that ADEQ did use this approach for IGS
Unit 3 and determined that with the
emissions reductions associated with
the new Unit 3 emissions caps, no
additional controls are necessary to
make reasonable progress. ADEQ did
not provide any rationale for why it
used this approach for IGS Unit 3, but
not for SGS Units 1 and 2.
Furthermore, the fact that the SDA
upgrades would still be cost effective
following implementation of the massbased caps at SGS Units 1 and 2 is
relevant to whether the use of caps (in
lieu of throughput-based limits) is
reasonable and appropriate in this
particular case. The fact that
throughput-based (e.g., lb/MMBtu)
limits equivalent to SDA would still be
cost-effective following implementation
of the caps (i.e., if TEP complies with
the caps by lowering its operating level)
indicates that throughput limits based
on the emissions rates achievable with
SDA upgrades may be necessary to
make reasonable progress, regardless of
the future operating level. As previously
noted, the 2019 Guidance explains that,
under such circumstances, mass-based
caps are generally not appropriate.
Therefore, we believe this consideration
is relevant to the evaluation of whether
mass-based caps were reasonable and
consistent with the requirements of the
RHR in this case.
Third, we agree with ADEQ’s
statement that the operating scenarios
outlined in the IRP are not federally
enforceable conditions. However,
ADEQ’s statement in its comment letter
that it has ‘‘no basis for the
consideration of these future scenarios
as part of its control measure analysis
and the establishment of the mass-based
emission limits’’ is inconsistent with its
stated rationale in the Plan for
establishing caps instead of mass-based
limits. Specifically, ADEQ stated that:
As discussed in TEP’s 2020 IRP, Units 1
will transition to seasonal operation in 2023
and Unit 2 in 2024. TEP is planning to retire
Unit 1 in 2027 and Unit 2 in 2032. TEP will
be very likely to manage its operating level
strategically instead of completing the
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upgrades to the SDA systems for meeting the
RP requirements. Therefore, ADEQ
determines that a mass-based emission limit
is reasonable.79
In other words, ADEQ elected to
establish caps specifically because it
anticipated that TEP could comply with
these caps by reducing its operating
level consistent with its then-current
IRP. Therefore, we do not agree that it
was inappropriate for the EPA to
consider information contained in TEP’s
most recent (2023) IRP in evaluating
whether the mass-based caps were
reasonable and consistent with the RHR.
Lastly, we agree that for APS Cholla
Unit 2, the EPA accepted a sourcespecific permit revision that included a
trigger that was conditional on the
EPA’s approval of the SIP revision that
altered the remaining useful life of the
unit in ADEQ’s four factor analysis.
However, the APS Cholla scenario was
distinguishable because, as explained in
the proposed rule,80 the SIP revision for
APS Cholla replaced the FIP that was
applicable to these units.81 Therefore, it
would not have been reasonable to
subject them to two inconsistent
requirements, one State and one
Federal, under the RHR at the same
time. Thus, under these circumstances it
was appropriate for ADEQ to make the
effectiveness of the permit conditions
contingent on EPA SIP approval. In the
current case, there is no existing FIP in
place applicable to IGS Unit 3, so no
similar rationale exists for making the
cap contingent upon approval by the
EPA.
Comment B.9. ADEQ asserts that the
EPA should approve ADEQ’s reasonable
progress goal (RPG) for the Sycamore
Canyon Wilderness Area. The state
indicates that it provided the required
‘‘robust demonstration’’ by including a
detailed analysis of visibility data at the
Sycamore site to demonstrate that its
slower rate of progress results from
significant increases in light extinction
from coarse mass.
Response B.9. As ADEQ notes in its
comment, its analysis regarding
Sycamore Canyon focused on the
substantial increase in coarse mass and
soil impairment at the Sycamore
Canyon site. However, as explained in
our proposal, the rule requires a state
with a Class I area whose RPG is above
the glidepath to demonstrate, based on
the source selection and four factor
analyses required under 40 CFR
51.308(f)(2)(i), that there are no
additional emissions reduction
measures for sources that may
reasonably be anticipated to contribute
to visibility impairment in the Class I
area that would be reasonable to include
in the long-term strategy.82 Although
ADEQ provided a detailed analysis of
monitoring data concerning Sycamore
Canyon, it did not provide ‘‘a robust
demonstration, including documenting
the criteria used to determine which
sources or groups or sources were
evaluated and how the four factors
required by paragraph (f)(2)(i) were
taken into consideration in selecting the
measures for inclusion in its long-term
strategy.’’ 83 Instead, it relied solely on
monitoring data and the source
selection and four-factor analyses
contained elsewhere in the Plan.84 For
the reasons described in our proposal
and elsewhere in this document, we
find that these analyses were inadequate
to meet the requirements of 40 CFR
51.308(f)(2). Therefore, the Plan also did
not meet the requirements of 40 CFR
51.308(f)(3)(ii)(A) with respect to
Sycamore Canyon.
Comment B.10. ADEQ indicates that
the State intends to coordinate with
EPNG to provide supporting
documentation for the interest rate.
ADEQ indicates that it intends to
provide the interest rate documentation
as confidential business information
(CBI) to the EPA for review prior to
publication of the final rule and
requests that the EPA approve the cost
calculation for EPNG Willcox and
Williams based on the site-specific
interest rate and supporting
documentation.
Response B.10. Although ADEQ
referenced the existence of
documentation and the possibility of
sharing it with the EPA in its response
to comments in the Plan,85 no
supporting documentation for the
interest rate was submitted as part of the
Plan or prior to the close the public
comment period on the EPA’s proposed
partial approval and partial disapproval.
Therefore, the EPA is unable consider
the interest rate information as part of
this action.
Additionally, we note that the lack of
documentation of EPNG’s firm-specific
interest rate was one of several flaws
that we identified in the state’s longterm strategy. Therefore, even if the
appropriate documentation had been
submitted and within the proper time
frame, that alone would not have
changed our determination that the
82 89
79 2022
Arizona Regional Haze Plan, Appendix C,
p. 236.
80 89 FR 47398, 47407, Table 1.
81 77 FR 72511 (December 5, 2012).
PO 00000
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Fmt 4700
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FR 47398, 47433.
CFR 51.308(f)(ii)(A).
84 See Plan p. 106, footnote 112 (citing Plan
Section 8 and Appendix C).
85 2022 Arizona Regional Haze Plan, Appendix K.
83 40
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2022 Arizona Regional Haze Plan did
not satisfy the long-term strategy
requirements of 40 CFR 51.308(f)(2).
Comment B.11. ADEQ voiced
procedural concerns with the lack of
specificity in the EPA’s proposed
disapproval of the 2022 Arizona
Regional Haze Plan. ADEQ cites CAA
307(d)(3) as requiring a detailed notice
of rulemaking and cites Small Ref. Lead
Phase-Down Task Force v. EPA, 705
F.2d 506, 518–19 (D.C. Cir. 1983), for
the proposition that the notice provided
in the proposal may be too general to be
adequate and that ‘‘[a]gency notice must
describe the range of alternatives being
considered with reasonable specificity.’’
The commenter asserts that the EPA’s
proposed rule does not provide
‘‘detailed notice’’ of certain specific
issues that form the basis for
disapproval of entire sections of the
2022 Arizona Regional Haze Plan,
denying ADEQ the opportunity to
specifically address those bases for
disapproval during the comment period.
Response B.11. We disagree that the
EPA’s proposal provided inadequate
notice. The EPA’s action on the 2022
Arizona Regional Haze Plan is not
subject to the requirements of CAA
section 307(d). Those requirements
apply only to specific enumerated types
of actions under the CAA and to ‘‘such
other actions as the Administrator may
determine.’’ 86 Actions on SIPs are not
one of the enumerated actions, and the
Administrator had not determined that
this action is subject to 307(d) pursuant
to Section 307(d)(1)(V). Therefore, this
action is subject to the procedural
requirements of the Administrative
Procedure Act (APA).
Accordingly, pursuant to 5 U.S.C.
553(b)(2) and (3), the EPA’s notice of
proposed rulemaking regarding the Plan
was required to include ‘‘reference to
the legal authority under which the rule
is proposed’’ and ‘‘either the terms or
substance of the proposed rule or a
description of the subjects and issues
involved.’’ The proposal clearly met
these requirements, as it stated the
applicable legal authorities and
provided the EPA’s review of the Plan
in relation to those requirements. The
comment provides no basis to conclude
that the proposal failed to meet these
requirements. Indeed, the opinion cited
by the commenter contrasts these more
general APA requirements to the more
exacting requirements of CAA section
307(d) concerning the contents of
proposed rulemaking.87 While we agree
with the commenter that ‘‘[a]gency
86 CAA
Section 307(d)(1).
Ref. Lead Phase-Down Task Force v.
EPA, 705 F.2d 506, 518–19 (D.C. Cir. 1983),
87 Small
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notice must describe the range of
alternatives being considered with
reasonable specificity,’’ 88 we find that
our proposal met this requirement, as it
plainly stated that the EPA was
considering partially approving and
partially disapproving the 2022 Arizona
Regional Haze Plan and detailed the
reason for this proposed action. Please
also see Responses A.1.
Comment B.12. ADEQ acknowledges
that further FLM consultation is
required for a plan revision that will
correct the deficiencies identified in the
proposed rulemaking action, but
contends that the inclusion of the
nonpoint source selection analysis and
selected controls for nonpoint sources
in the FLM review draft of the plan
provided FLMs adequate notice and
review of Arizona’s nonpoint source
rules that were codified after plan
submission and submitted in the 2023
Arizona Regional Haze Rules
Supplement.89
Response B.12.The EPA disagrees
with ADEQ’s contention that it provided
the FLMs with adequate notice and
review of Arizona’s nonpoint source
rules. The information about FLM
consultation regarding the rules
specifically is not detailed in either the
2023 Arizona Regional Haze Rules
Supplement, or the 2022 Arizona
Regional Haze Plan. The 2023 Arizona
Regional Haze Rules Supplement
indicated that further information on
how this SIP revision complied with 40
CFR 51.308(i) requirements for federal
land manager consultation is section 2.4
of the 2022 Arizona Regional Haze
Plan.90 However, section 2.4 of the plan
only describes the FLM review of the
2022 Arizona Regional Haze Plan, and
does not specify if ADEQ provided a
draft of the three nonpoint source rules
to the FLMs for review. The rules were
not included in the 2022 Arizona
Regional Haze Plan. Should Arizona
choose to submit a SIP revision,
clarification of the FLM review process
of the nonpoint source rules that are
listed in Table 1–1 of the 2023 Arizona
Regional Haze Rules Supplement would
be helpful for EPA review.
C. Comment Letter From the Chamber
and AMC
Parts I (‘‘The Chamber and AMC are
supportive of the goals of the Regional
Haze Rule’’) and III (‘‘Conclusion’’) of
the Chamber and AMC’s comment letter
are informational and therefore do not
88 Id.
at 549.
SIP Revision: Nonpoint Rules to
Supplement Arizona’s 2022 Regional Haze SIP,
‘‘2023 Arizona Regional Haze Rule Supplement,’’
August 22, 2023.
90 Id, at Chapter 4.
89 ADEQ
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require a response. We respond to part
II, sections A–E of the Chamber and
AMC’s comment letter below.
Comment C.1. The Chamber and AMC
note that the EPA’s delayed action and
partial disapproval of Arizona’s
Regional Haze Plan is an example of
erosion of cooperative federalism. The
commenter contends that the timeline of
events leading up to the EPA’s partial
disapproval of Arizona’s Regional Haze
Plan is problematic and that the EPA
seems to routinely miss statutory
deadlines, only to get sued by thirdparty entities for failure to act, resulting
in agreements to deadline extensions
that delay action for years. In the
meantime, the resources and analysis
invested by states depreciate in value,
often requiring states to reinvest in
efforts to update an analysis with new
information. The commenter also
asserted that ‘‘[r]egularly, an even worse
scenario plays out in which EPA denies
a SIP because the information submitted
in good faith by a state has since become
dated and stale.’’
Response C.1. We do not agree that
either the timing or substance of the
EPA’s partial disapproval of Arizona’s
Regional Haze Plan is an example of the
erosion of cooperative federalism. We
acknowledge that the EPA did not act
on the 2022 Arizona Regional Haze Plan
within the statutory deadline under
CAA section 110(k)(3), and that we were
subsequently sued for failing to meet
that deadline. This resulted in a courtordered deadline for the EPA to take
action on the Plan by March 30, 2025.91
However, we do not agree that this
resulted in a ‘‘deadline extension’’ of
any sort, or an erosion of cooperative
federalism. On the contrary, in issuing
a partial approval and partial
disapproval of the Plan, the EPA is
fulfilling our statutorily-mandated role
to review SIPs for compliance with the
requirements of the CAA and the RHR,
as further described in Response D.3.
We also disagree with the suggestion
that the EPA is disapproving the 2022
Arizona Regional Haze Plan, partially or
entirely because information became
‘‘dated or stale.’’ The comment did not
provide examples of information
becoming dated, resulting in
disapproval; thus, we cannot comment
on any specific concerns the commenter
has with the information within the
2022 Arizona Regional Haze Plan.
Further, as explained in Responses
A.1 EPA staff also discussed with ADEQ
many of the concerns that became bases
for our disapproval during the SIP
development process.
91 Sierra Club v. EPA (D.D.C. Case No. 1:23-cv01744–JDB), Consent Decree entered July 12, 2024.
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Comment C.2. The Chamber and AMC
state that guidance should not be cited
as grounds to disapprove the 2022
Arizona Regional Haze Plan. The
commenter asserts that guidance should
be viewed only as a reference and not
a legal requirement to be used to
approve or disapprove a state’s plan.
The Chamber and AMC also claim that
the EPA published final guidance for
Regional Haze Plans three weeks before
the plans were due, making compliance
with the guidance practically
impossible before the deadline. The
commenter concludes that relying on
the guidance to partially disapprove the
Plan was therefore arbitrary and
capricious, and the EPA should
withdraw all of the proposed
disapprovals based upon the 2021
Clarifications Memo.
Response C.2. The EPA disagrees that
it relied on guidance, including the
2021 Clarifications Memo, as the basis
for our partial disapproval. See
responses A.5, B.1, and B.2.
Comment C.3. The Chamber and AMC
assert that Arizona’s source selection
methodology was reasonable and that
the EPA should give deference to the
State on this matter. The commenter
indicates that sources that applied
controls in the first round of Regional
Haze had recently made significant
investments in the design, engineering,
procurement, construction and
operation of those air pollution control
devices. They note that forcing facilities
to consider improvement or
replacement of these air pollution
control devices long before they have
depreciated is an unnecessary economic
burden for the source and the State. The
Chamber and AMC note that ADEQ
chose not to force additional analysis
from these sources and reasonably
relied upon reductions from other
emissions sources for visibility
improvement, a method that resulted in
all but one of Arizona’s Class I areas
either meeting or exceeding the uniform
rate of progress (URP) toward natural
conditions.
Response C.3. We disagree that it was
reasonable for Arizona to screen out
sources solely because they applied
controls during the first planning
period, for the reasons described in
section IV.E.2.a. of our proposal and in
response B.3 of this document.
We also disagree that our disapproval
will automatically force sources to
consider improving or replacing any
recently installed air pollution devices.
Rather, ADEQ has the option to provide
additional documentation and
justification for its effective control
determinations in a responsive SIP
revision. We anticipate that for many
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units that recently installed controls,
ADEQ will be able to provide an
adequate demonstration of effective
controls on a unit-specific and
pollutant-specific basis, if it chooses to
do so, which would preclude the need
for a four-factor analysis for those units
and pollutants. Any affected units and
pollutants for which ADEQ is unable to
make such demonstration would be
subject to the four-factor analysis
requirement as required by 40 CFR
51.308(f)(2).
Finally, we note that all states are
subject to the requirements at 40 CFR
51.308(f)(2) and (3) regardless of
whether the 2028 RPGs for Class I Areas
they affect are above or below URP.
Comment C.4. The Chamber and AMC
assert that the EPA should give
deference to Arizona’s deviation from
the EPA Control Cost Manual in
developing cost estimates. The
commenter notes that the Cost Control
Manual is not accurate for all sources
and cites examples such as variable
interest and emissions rates. They
conclude that the use of different
interest rates and different control
efficiencies for different projects should
be viewed as reasonable.
Response C.4. We do not agree that
we should have deferred to Arizona’s
deviation from the EPA Control Cost
Manual in the absence of adequate
justification. As discussed in Response
D.3, Congress charged the EPA with
independently evaluating and reviewing
SIP submissions for compliance with
the applicable requirements under the
CAA. 40 CFR 51.308(f)(2)(iii) requires
states to ‘‘document the technical basis,
including modeling, monitoring, cost,
engineering, and emissions information,
on which the State is relying to
determine the emission reduction
measures that are necessary to make
reasonable progress in each mandatory
Class I Federal area it affects.’’ The
technical documentation must include
the modeling, monitoring, cost,
engineering, and emissions information
on which the state relied to determine
the measures necessary to make
reasonable progress. For the reasons
noted in section IV.E.2.b.ii (‘‘Deviations
from Cost Control Manual’’) of our
proposed rule, we found that Arizona
failed to adequately document the
technical basis that it relied upon to
determine emissions reduction
measures, as required by 40 CFR
51.308(f)(2)(iii). Specifically, as
explained in our proposal, it is
important to use consistent methods in
order to allow for reasoned comparisons
between different sources within a state,
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and cost analyses in other states.92
Therefore, while our regulations allow
for flexibility among various
methodologies, where a state deviates
from these methods, it should explain
how its alternative approach is
reasonable, appropriate, and consistent
with the regulations and the statutory
requirement to make reasonable
progress towards the national goal.
Arizona did not do so. We therefore
disagree that the EPA should give
deference to Arizona’s approach in the
Plan.
Comment C.5. The Chamber and AMC
indicate that Arizona’s plan should be
viewed in the context that it results in
all but one monitor having an RPG that
provides for a greater rate of visibility
improvement than the adjusted URP.
The commenter asserts that Arizona has
created a plan that meets or exceeds the
URP at all monitors except for Sycamore
Canyon, which was moved to an
intersection of two dirt roads in 2014.
The commenter concludes that the fact
that visibility at Arizona’s Class I areas
is improving at a pace to reach natural
conditions prior to the RHR goal of 2064
is important context in evaluating the
source selection methodology and other
decisions made by Arizona.
Response C.5. We do not agree with
the commenter’s characterization of the
role of the URP. As explained in our
proposal:
The URP is a planning metric used to
gauge the amount of progress made thus far
and the amount left before reaching natural
visibility conditions. However, the URP is
not based on consideration of the four
statutory factors and therefore cannot answer
the question of whether the amount of
progress being made in any particular
implementation period is ‘‘reasonable
progress.’’ 93
Moreover, being on or below the URP
does not exempt a state from any of the
requirements of the CAA or the Regional
Haze Rule.94
It should also be noted that the URP
represents the amount of visibility
improvement that would need to be
achieved during each implementation
period to achieve natural visibility
conditions by the end of 2064. However,
the 2064 date is used solely to calculate
the URP as a tracking metric. The CAA
and RHR do not contain any end dates
for the regional haze program and do
not have a ‘‘goal’’ or requirement to
achieve natural conditions by 2064
specifically.
Please also see Response B.9 for more
information on the robust
92 89
FR 47398, 47428–47429.
FR 47398, 47406.
94 See 82 FR 3078,3093 and 3099–3100.
93 89
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demonstration required for Sycamore
Canyon under 40 CFR 51.308(f)(3)(ii),
which is missing from Arizona’s
submission.
D. Comment Letter From TEP
The ‘‘Background’’ section of TEP’s
comment letter is informational and
therefore does not require a response.
We respond to the ‘‘Comments of
Proposed Disapproval’’ section of TEP’s
comment letter below.
Comment D.1. TEP claims that
ADEQ’s source selection methodology
was reasonable and the EPA should
approve the determination. First, TEP
cites to the 2019 Guidance and 2021
Clarifications Memo as providing states
discretion for source selection and notes
that ADEQ applied a Q/d screening
threshold of 10 for each process at a
source. TEP further describes ADEQ’s
screening out processes where the
facility recently adopted ‘‘effective
controls,’’ which the Agency defined as
controls installed to meet the
requirements of the PSD program
(BACT), the first regional haze planning
period (BART), or other NAAQS
requirements. Second, TEP further
suggests that the EPA is proposing to
approve ‘‘many aspects of ADEQ’s
source selection process,’’ including
ADEQ’s choice of screening threshold
and focus on NOX, SO2, and PM10 in
evaluating visibility impacts, but
simultaneously proposing to find that
the State did not adequately justify its
determination of effective emissions
reduction measures.
Response D.1. First, we disagree with
the commenter that ADEQ applied a Q/
d screening threshold of 10 for each
process at a source. As noted in the
2022 Arizona Regional Haze Plan, the Q
value was calculated from facility-wide
PM10, NOX, and SO2 annual emissions,
not process-specific emissions.95
Second, we clarify that the EPA did
not propose to approve ‘‘many aspects
of ADEQ’s source selection process.’’
We found that ADEQ reasonably and
adequately explained and documented
many aspects of its source selection
process, such as its focus on sulfate,
nitrate, and coarse mass and its use of
a Q/d value of 10 for point sources.
However, we are not separately
approving or disapproving specific
elements of ADEQ’s long-term strategy,
including any elements of the sourceselection process. Rather, we are
disapproving the long-term strategy as a
whole under 40 CFR 51.308(f)(2), for the
reasons described in our proposal and
in this document.
95 2022 Arizona Regional Haze Plan, Appendix
C2.2, p. 26.
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Comment D.2. TEP asserts that ADEQ
reasonably evaluated existing controls at
IGS Unit 4 and SGS Units 3 and 4.
First, the commenter states that ADEQ
did not determine that sources were
effectively controlled based on BART
controls alone, but also evaluated
additional emissions reduction
measures at several units that were
controlled during the first regional haze
planning period, citing Table 8–2 in the
2022 Arizona Regional Haze Plan. For
IGS Unit 4 specifically, the commenter
states that ADEQ evaluated existing
emissions reduction measures at IGS
Unit 4 from a source-specific
perspective, and determined that further
analysis would be futile. TEP cites to
statements regarding post-combustion
controls in the 2019 Guidance and states
that, in a recent FIP action for Arizona,
the EPA determined that eliminating
coal combustion at Unit 4 would control
emissions beyond the best available
NOX and SO2 controls.96 TEP concludes
that these emissions reduction measures
remain the best available controls at this
unit in the second planning period. TEP
further notes that ADEQ’s determination
that IGS Unit 4 is well-controlled is also
consistent with recent decreasing
emissions trends across BART-eligible
EGUs, including IGS Unit 4, and
between 2014 and 2019. TEP points to
the recent proposed rule for Georgia’s
Regional Haze SIP,97 and comments that
the EPA cited to similar visibilityimpairing emissions trends as support
for Georgia’s source-selection
methodology. Citing to the 2021
Clarifications Memo,98 TEP also
indicates that ADEQ was not required to
consider emissions trends and that the
State has discretion to emphasize other
considerations, such as the EPA’s prior
FIP evaluation.
Second, TEP states that the EPA’s
proposed disapproval fails to engage
with ADEQ’s analysis for SGS Unit 3
and 4. TEP notes that ADEQ considered
potential additional control measures
that could be used to achieve emissions
reductions at SGS Units 3 and 4 based
on an initial control analysis submitted
by TEP.99 In this analysis, TEP provided
96 79
FR 52420, 52422.
FR 47481 (June 3, 2024).
98 Specifically, TEP quotes page 3 of the 2021
Clarifications Memo (‘‘[t]he [Regional Haze Rule]
does not explicitly list factors that states must or
may not consider when selecting sources for
analysis,’’) and cites page 5 of the 2021
Clarifications Memo as supporting its assertion that
‘‘EPA has recommended that states consider
projected and actual emissions in evaluating
existing emission reduction measures.’’
99 TEP, Identification and Evaluation of Emission
Control Measures for Units 3 and 4 at the
Springerville Generating Station for Purposes of the
Regional Haze Second Planning Period Under 40
97 89
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information on technically feasible
control measures, as well as the actual
and projected emissions rates at each
unit.
Response D.2. We disagree that
ADEQ’s evaluations regarding effective
controls at IGS Unit 4 and SGS Units 3
and 4 were reasonable and justified.
Contrary to TEP’s claim, ADEQ did not
evaluate additional emissions reduction
measures at several units that were
controlled during the first regional haze
planning period. Table 8–2 cited by TEP
to support its claim that ADEQ
evaluated additional emissions
reduction measures at units that were
controlled during the first regional haze
planning period only depicts annual,
source-level total emissions of NOX, SO2
and PM10 and does not include any
information regarding unit-specific or
pollutant specific emissions rates or
controls. The commenter also provides
no citation for its assertion that ADEQ
evaluated existing emissions reduction
measures at IGS Unit 4 from a sourcespecific perspective. Therefore, based
on the contents of the 2022 Arizona
Regional Haze Plan, it was reasonable
for the EPA to determine that ADEQ did
not evaluate additional emissions
reduction measures at units that were
controlled during the first regional haze
planning period.
Similarly, the commenter’s citation to
the discussion of post-combustion
controls in the 2019 Guidance is
misleading because no such controls
were installed at IGS Unit 4. Rather, the
unit was converted from coal to gas as
part of a ‘‘better-than-BART’’
determination pursuant to 40 CFR
51.308(e)(2).100 Therefore, the actual
relevant effective controls discussion in
the 2019 Guidance is the discussion of
fuel combustion units that are required
to burn pipeline quality natural gas.
Such units are generally considered to
be effectively controlled for SO2 and
PM.101 However, they are not
necessarily effectively controlled for
NOX. Therefore, we disagree with the
commenter that, given TEP’s recent
conversion of IGS Unit 4 from coal to
natural gas, ADEQ’s conclusion that
further analysis was not required was
reasonable. As stated in the proposed
rule,102 ADEQ should have explained
why it is reasonable to assume, without
conducting a four-factor analysis, that
no additional NOX controls would be
reasonable.103
CFR 51.308(f)(2) (Mar. 2020), available at https://
static.azdeq.gov/aqd/haze/tep_spr_4fa_u34.pdf.
100 See 40 CFR 52.145(j)(4).
101 See 2019 Guidance, p. 24.
102 89 FR 47398, 47428.
103 See 40 CFR 51.308(f)(2)(i) (‘‘. . .The State
must include in its implementation plan a
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The commenter’s discussion of
emissions trends is also misleading on
several grounds. First, the commenter
mischaracterizes the EPA’s review of
Georgia’s regional haze source selection
methodology. In the section of the
Georgia proposal cited by TEP, the EPA
considered trends in total measured
visibility impairment at three Class I
areas affected by Georgia’s sources as
supporting the reasonableness of the
state’s overall source selection
methodology.104 The EPA did not,
however, consider trends in emissions
from specific sources and did not
indicate that such trends would be
relevant either to the reasonableness of
a state’s overall source selection
methodology or especially to the
question of a whether a particular
source may be screened out on the
grounds that it is ‘‘effectively
controlled.’’ Furthermore, the trends
cited by the commenter were for
multiple BART-eligible EGUs, not just
IGS. Therefore, we do not agree that
decreasing SO2 and NOX emissions at
BART-eligible EGUs in Arizona between
2014 and 2019 are relevant to whether
IGS Unit 4 is effectively controlled.
Second, the commenter
mischaracterizes the contents of the
2021 Clarifications Memo as it relates to
how to determine whether a source is
effectively controlled. The first section
cited by the commenter, regarding
‘‘Factors to Consider for Source
Selection’’ 105 relates to a State’s overall
source selection methodology, which is
generally considered to be the first step
of determining what measures are
necessary for reasonable progress.106
Whether and how to screen out
particular sources on the grounds that
they are effectively controlled is a
subsequent step. As previously noted,
we found that many aspects of ADEQ’s
source selection process were
reasonable and adequately explained
and documented,107 consistent with the
statement in the Clarifications Memo
that, ‘‘whatever choices states make
should be reasonably explained and
produce a reasonable outcome.’’ 108
description of the criteria is used to determine
which sources or groups of sources it evaluated and
how the four factors were taken into consideration
in selecting the measures for inclusion in its longterm strategy.’’). See also 2021 Clarifications Memo,
p. 5; 2019 Guidance, p. 23.
104 89 FR 47481, 47497–47498.
105 2021 Clarifications Memo, p. 3.
106 Id. (‘‘Source selection is a critical step in
states’ analytical processes. All subsequent
determinations of what constitutes reasonable
progress flow from states’ initial decisions regarding
the universe of pollutants and sources they will
consider for the second planning period.’’)
107 89 FR 47428.
108 2021 Clarifications Memo, p. 3.
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However, once the sources were
initially selected for evaluation of
additional control measures, we found
that ADEQ did not provide an adequate
justification for subsequently screening
out certain sources and units from
ultimately conducting a four-factor
analysis on the basis that they are
effectively controlled.
The second section of the 2021
Clarifications Memo mischaracterized
by the commenter, ‘‘Sources that are Not
Selected Based on Existing Effective
Controls,’’ does address the screening
out of particular sources on the grounds
that they are effectively controlled. In
particular, this section recommends
that, ‘‘States should first assess whether
the source in question already operates
an ‘effective control’ as described in the
August 2019 Guidance. They should
further consider information specific to
the source, including recent actual and
projected emission rates, to determine if
the source could reasonably attain a
lower rate.’’ 109 For the reasons detailed
in our proposal and elsewhere in this
document, we find that ADEQ did not
reasonably explain and support its
determination at the first step that IGS
Unit 4 already operates effective
controls, particularly for NOX.
Moreover, even if IGS Unit 4 does have
effective controls, ADEQ should have
considered recent actual and projected
emissions rates for this particular unit,
not for all BART-eligible units as a
group, in order to determine whether
these controls are necessary to make
reasonable progress.
Finally, we disagree that our proposed
disapproval fails to engage with ADEQ’s
analysis for SGS Unit 3 and 4. Contrary
to the commenter’s suggestion, ADEQ
did not screen out SGS Units 3 and 4
at the source selection stage,110 but
instead conducted four-factor analyses
for these units.111 We summarized these
analyses on pages 47422–47423 of our
proposal. We did not note any particular
flaws in these analyses or the resulting
determinations that no additional
controls were necessary to make
reasonable progress in our proposal.
However, we found that ADEQ had not
addressed whether any of the existing
measures relied upon in these fourfactor analyses were necessary to make
reasonable progress and thus should be
a part of the State’s long-term strategy
for the second planning period.112 We
also noted that, as part of its analysis of
whether these existing measures are
109 Id.,
p. 5 (emphasis added).
Arizona Regional Haze Plan, Appendix
C, Exhibit CI.
111 Id., Chapter C3.13.
112 89 FR 47431.
110 2022
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necessary to make reasonable progress,
the State should have considered
whether the relevant sources are subject
to enforceable emissions limits that
ensure their emissions rates will not
increase. Without this information, it is
not clear what measures are in the
State’s long-term strategy for the second
planning period and how controls on
these units result in each of the affected
Class I areas making reasonable progress
towards the national goal.
Comment D.3. TEP asserts that ADEQ
reasonably evaluated additional control
measures using a four-factor analysis for
SGS Units 1 and 2. Citing Oklahoma v.
EPA, 723 F.3d 1201, 1209 (10th Cir.
2013), the commenter asserts that while
the statute identifies the factors that
must be considered, Congress left to
states the determination as to how these
factors should be weighed.
Response D.3. While we agree that
states have significant discretion in how
they consider and apply the four
statutory factors as part of a Regional
Haze SIP, they do not have unlimited
discretion. On the contrary, the EPA has
a crucial role in reviewing such SIP
submissions for compliance with the
requirements of the CAA and the RHR.
Pursuant to CAA section 110, states
must submit SIP revisions to the EPA
for review and the EPA must evaluate
whether each SIP submission meets all
of the applicable requirements of the
Act.113 The EPA must disapprove any
SIP revision that ‘‘would interfere with
any applicable requirement’’ of the
Act.114 CAA section 110(a)(2)(J)
specifically requires that SIPs ‘‘meet the
applicable requirements’’ of Part C of
Title I of the CAA including the
requirements for visibility protection set
forth in sections 169A and 169B.115
Pursuant to section 169A(b), the EPA is
required to promulgate visibility
protection regulations that apply to
‘‘each applicable implementation plan’’
(i.e., each SIP or FIP) 116 for each State
containing one or more Class I areas and
each State ‘‘emissions from which may
reasonably be anticipated to cause or
contribute to any impairment of
113 CAA section 110(a)(1), (k)(3), 42 U.S.C.
7410(a)(1) and (k)(3).
114 CAA section 110(l), 42 U.S.C. 7410(l).
115 CAA sections 110(a)(2)(J), 169A and 169B 42
U.S.C. 7410(a)(2)(J), 7491 and 7492.
116 Under the CAA, ‘‘applicable implementation
plan’’ is defined as ‘‘the portion (or portions) of the
implementation plan, or most recent revision
thereof, which has been approved under [CAA
section 110], or promulgated under [CAA section
110](c) . . . and which implements the relevant
requirements of [the CAA].’’ CAA section 302(q), 42
U.S.C. 7602(q). In other words, an ‘‘applicable
implementation plan’’ is an EPA-approved SIP or
Tribal Implementation Plan, or an EPApromulgated FIP.
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visibility in any [Class I area].’’ The
CAA specifies that these regulations
(including the RHR) must require each
such SIP or FIP to ‘‘contain such
emission limits, schedules of
compliance and other measures as may
be necessary to make reasonable
progress toward meeting the national
goal.’’ 117 Thus, the statute provides the
EPA a key oversight role in reviewing
SIPs, including regional haze SIPs, and
the ‘‘EPA has substantive authority to
assure that a state’s proposals comply
with the Act, not simply the ministerial
authority to assure that the state has
made some determination.’’ 118
Nothing in the Oklahoma case cited
by the commenter undermines this
authority. On the contrary, the
Oklahoma court upheld the EPA’s
disapproval of BART determinations
that were part of a regional haze SIP,
noting BART ‘‘does not differ from other
parts of the CAA—states have the ability
to create SIPs, but they are subject to
EPA review.’’ 119 Likewise, all regional
haze SIPs are subject to EPA review, as
described in the preceding paragraph.
In our action on the Plan, we are
exercising our substantive authority to
review the state’s submittal for
compliance with the applicable
requirements of the CAA and RHR.
Based on our review of the Plan, we
find, among other things, that ADEQ
had not reasonably evaluated and
weighed the four statutory factors for
SGS Units 1 and 2 for the reasons noted
in section IV.E.2 of our proposal and
responses B.4., B.6, B.7 and B.8 of this
document.
Comment D.4. TEP states that ADEQ’s
choice of cost-effectiveness threshold
was reasonable, and that the EPA’s
proposed rule did not afford appropriate
deference to ADEQ’s assessment of
reasonable cost-effectiveness values.
TEP also cites a previous EPA action
stating that ‘‘Congress did not provide
any direction as to how states should
consider ‘the costs of compliance’ when
determining reasonable progress.’’ 120
TEP also provides the following reasons
for why it believes ADEQ’s choice of
cost-effectiveness threshold was
reasonable.
First, TEP states that ADEQ selected
a threshold based on the State’s
evaluation of the highest cost controls
during the first planning period. TEP
notes that this threshold is nearly
$1,000/ton higher than the 98th
percentile value for EGU boilers during
the first planning period and $1,500/ton
higher than costs rejected by Georgia in
evaluating additional emissions
reduction measures in its SIP
submission.121
Second, TEP claims that ADEQ’s
bright-line approach to analyzing
available controls above its costeffectiveness threshold was also
reasonable. TEP disagrees with the
EPA’s concern about the average cost of
installing SNCR at SGS Unit 2 being
$269/ton above ADEQ’s $6,500/ton
threshold.122 TEP states that the 2019
Guidance emphasized that the RHR
does not prevent states from
implementing ‘‘bright line’’ costeffectiveness thresholds when
considering additional control
measures, consistent with the Ninth
Circuit’s decision in NPCA v. EPA.123
TEP asserts that this threshold sets an
amount above which a state would
reject control options as too expensive,
and that for controls falling below this
threshold, it is reasonable for ADEQ to
evaluate additional factors, such as
incremental costs, visibility impacts,
and the other statutory factors, in
determining whether these controls are
necessary for reasonable progress.
Response D.4. As TEP describes, the
EPA noted in prior rulemakings that
‘‘Congress did not provide any direction
as to how states should consider ‘the
costs of compliance’ when determining
reasonable progress.’’ However,
consistent with our prescribed statutory
role, as described in Response D.3, the
EPA is required to evaluate whether
each State exercised its flexibility and
conducted the required analyses in a
reasonable way and in accordance with
the applicable requirements. As
described throughout our proposal and
this final action, we determined that
Arizona did not do so.
For example, contrary to TEP’s claim,
the EPA did not find that ADEQ’s
average cost-effectiveness thresholds of
$6,500/ton for point sources and $5,000/
ton for nonpoint sources were
unreasonable. Rather, as explained in
our proposal, we found that the State
inconsistently and unreasonably
applied these cost thresholds to the
control determinations.124
In particular, we found that ADEQ
incorrectly characterized its average cost
effectiveness threshold for points
sources as a bright-line threshold,125
121 89
117 42
U.S.C. 7491(b)(2).
118 Arizona ex. rel. Darwin v. EPA, 815 F.3d 519,
531 (9th Cir. 2016).
119 Oklahoma v. EPA, 723 F.3d 1201, 1209 (10th
Cir. 2013).
120 81 FR 296, 310 (January 5, 2016).
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FR 47494.
FR 47429.
123 2019 Guidance at 38 (citing NPCA v. EPA, 788
F.3d 1134, 1142–43 (9th Cir. 2015)).
124 89 FR 47398, 47429.
125 See 2022 Arizona Regional Plan, Appendix K,
p. 7.
122 89
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given that ADEQ, in fact, rejected
controls that were below this threshold.
In these instances, ADEQ relied on
incremental cost effectiveness as a basis
to find the cost of control excessive, but,
again, did not do so consistently, as
described in Response B.6 of this
document. Thus, ADEQ did not
consistently apply either its chosen
average cost effectiveness threshold or
any defined incremental cost
effectiveness threshold as a basis to
choose whether to adopt or reject
control measures, nor did it explain its
reasoning for these inconsistencies. The
EPA finds this to be unreasonable.
Based on this and other flaws in the
long-term strategy described in the
proposal and elsewhere in this
document, we find that the long-term
strategy in the Plan did not meet the
requirements of 40 CFR 51.308(f)(2).
We also note that, while our proposed
rule recommended that ADEQ revisit
control determinations with controls
that were slightly above the cost
thresholds, given the flaws in the costeffectiveness analyses, we did not
indicate that, in the absence of such
flaws, use of a bright line threshold
would have been improper, as long it
was appropriately justified and
consistently applied. Finally, we note
that the fact that other states have
applied lower or similar thresholds does
not automatically make Arizona’s
threshold reasonable.
Comment D.5. TEP states that ADEQ’s
evaluation of control costs is
conservative and results in projected
costs that are lower than what TEP
would incur. TEP asserts that ADEQ
selected baseline assumptions
consistent with the EPA’s Control Cost
Manual. In particular, TEP indicates
that ADEQ calculated control costs
using an assumed interest rate of 4.75
percent and a maximum equipment life
of 30 years, but that these assumptions
resulted in unrealistically low control
cost estimates. TEP noted that the EPA
previously used 20-year equipment life
and 7 percent interest rate for both NOX
and SO2 candidate emissions reduction
measures for IGS as part of a previous
regional haze FIP,126 and that these
assumed values of 7 percent and 20
years better reflect actual control costs.
TEP also asserted that ADEQ is not
required to treat the guidance provided
by the Control Cost Manual as
dispositive, and, citing Wyoming v.
EPA, 78 F.4th 1171, 1180 (10th Cir.
2023), TEP asserted that the EPA cannot
treat nonbinding guidelines as
mandatory in evaluating a SIP
submission.88
126 79
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Response D.5 We do not agree that
ADEQ’s evaluation of costs was
conservative and results in projected
costs that are lower than what TEP
would incur. Regarding the EPA’s
previous analyses for IGS, first, we note
that the EPA has revised several
chapters of the Control Cost Manual,
since the 2014 regional haze FIP cited
by TEP in the comment letter. In
particular, the chapter concerning SCR
was updated in 2019.127 As part of that
update, the remaining useful life for
SCR was revised from 20 years to 30
years.128 Consistent with this change,
ADEQ used a remaining useful life of 30
years for SCR, but used 20 years for
SNCR.129
Second, as explained in the Control
Cost Manual,130 interest rates change
with time due to changes in prices over
time for all relevant goods and services
such as capital equipment, engineering
services, other materials and reagents
used in the construction and operation
of control equipment. In the absence of
source-specific information, ADEQ
relied on a 4.75 percent interest rate
developed by analyzing and averaging
historical bank prime rate data. ADEQ
looked at 3-year average bank prime
rates for the periods of 2017–2019 (4.83
percent) and April 2018–March 2020
(4.78 percent). These dates were chosen
as they were the most recent data at the
time of the analysis.131 In contrast,
ADEQ also explained in its SIP
submittal that the 7 percent interest rate
from the first planning period FIP cited
by TEP was the 3-year average bank
prime rate during 2005–2007.132
Therefore, the 7 percent rate used by the
EPA in our previous FIP was not
appropriate for the cost analysis for the
127 Control Cost Manual, Section 4, Chapter 2
Selective Catalytic Reduction (June 2019), section,
2.4.2 Total Annual Costs, Indirect costs, available
at https://www.epa.gov/sites/default/files/2017-12/
documents/scrcostmanualchapter7thedition_
2016revisions2017.pdf.
128 Id. at page 87 of 107 (PDF document
pagination), (‘‘a representative value of the
equipment life for SCR at power plants can be
considered as 30 years’’).
129 Id., Appendix C, p. 219 (‘‘The estimated life
for SCR and SNCR were set at 30 and 20 years
respectively to match current EPA guidance for
these control technologies on utility boilers.’’) The
commenter’s citation to page 146 of the Plan
appears to be in error, as there is no such page in
the main body of the Plan, and page 146 of
Appendix C discusses the Willcox compressor
station.
130 Control Cost Manual, Section 4, Chapters 1
and 2, available at https://www.epa.gov/economicand-cost-analysis-air-pollution-regulations/costreports-and-guidance-air-pollution.
131 2022 Arizona Regional Haze Plan, Chapter
8.3.2.
132 Id.
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Plan, which was developed in 2020–
2022.
Finally, we disagree with the
commenter’s suggestion that we treated
the Control Cost Manual, or any other
guidance, as binding. As discussed in
Responses A.3 and C.4, the EPA’s
citations to guidance documents were
intended to provide further context on
what is generally considered to be a
reasonable approach to fulfill the
statutory and regulatory requirements.
We acknowledge that the suggestions in
those guidance documents are not
binding, but are generally assumed to be
reasonable. States can deviate from the
suggestions within EPA guidance
documents. However, they must do so
in a reasonable way, accompanied by
sufficient justification. The Plan did not
do so for the reasons described in our
proposal and elsewhere in this
document.
Comment D.6. TEP asserts that
ADEQ’s analysis of SCR and SNCR
reasonably approximated emissions
limits achievable at SGS Units 1 and 2.
TEP explains that the emissions rate
used in the analysis was unit-specific,
and that ADEQ considered baseline
NOX emissions, inlet concentrations,
and the frequency of startup/shutdown
cycles at SGS Units 1 and 2. TEP
reiterates that ADEQ explained that a
higher number of startup/shutdown
cycles results in higher average NOX
emissions rates with SCR, and that SGS
Units 1 and 2 experience a higher
frequency of startup/shutdown cycles
than average EGUs.
TEP further disagrees that SGS Units
1 and 2 are able to achieve an emissions
rate of 0.05 lb/MMBtu. TEP notes that
ADEQ further explained in its response
to public comments that it was
inappropriate to use an annual
emissions limit of 0.05 lb/MMBtu
because the CAMPD database only
contains three comparable units, out of
fifty-eight units, which are operating
below this emissions limit in 2019–
2021. The CAMPD database shows that
approximately 20% of the units
achieved emissions below 0.06 lb/
MMBtu in 2019–2021, which ADEQ
believed was a reasonable estimate of
the rate achievable with SCR for SGS
Units 1 and 2. TEP also notes that based
on their extensive industry experience,
vendors will not guarantee a rate of 0.05
lb/MMBtu due to concerns about
degradation over time.
TEP also states that even if ADEQ
adopted the EPA’s preferred emissions
rate of 0.05 lb/MMBtu, ADEQ’s analysis
of control measures for SGS Units 1 and
2 would remain substantially the same.
Table 3 of TEP’s comment letter
provides the updated cost-effectiveness
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value using a 0.05 lb/MMBtu rate for
SGS Units 1 and 2, assuming a 4.75
percent interest rate and a remaining
useful life of 30 years.
Response D.6. We do not agree that
ADEQ’s analysis of SCR and SNCR
reasonably approximated emissions
limits achievable at SGS Units 1 and 2.
Our proposed rule acknowledged the
startup/shutdown considerations noted
by ADEQ.133 However, the proposed
rule also explains that ADEQ has not
demonstrated why these startup/
shutdown considerations would be
significant enough at SGS Units 1 and
2 on an annual average basis, which is
the averaging period used to calculate
ton/year emissions reductions for cost
effectiveness calculations, to preclude
them from achieving this emissions
reduction level with SCR. As discussed
in more detail in Response B.4, we
would consider it appropriate for an
emissions limitation established on a
shorter averaging period to have a
higher value to account for startup/
shutdown emissions, which have a
greater effect on overall unit emissions
rates over shorter averaging periods.
We also disagree with TEP that
ADEQ’s review of emissions rates for
other tangentially fired coal units in
CAMPD should be determinative of the
SCR emissions rate achievable for the
SGS units. We do not necessarily
consider the inventory of unit emissions
data in CAMPD to be representative of
what is achievable with SCR technology
because units whose emissions are
included in CAMPD have been required
to install SCR as a result of a variety of
regulatory programs. Not all of these
programs may have fully considered
technological factors in establishing
emissions requirements or allowable
emissions limits, which would have the
effect of elevating reported emissions
rates. For example, several units in the
eastern U.S. have installed SCR but have
not been required to operate in a
manner that fully accounts for periods
of startup operations,134 while other
units may only operate their SCR
systems seasonally.135 Other SCR
systems may have been required by a
Consent Decree, which involves a
133 89
FR 47398, 47428.
FR 31798 (May 25, 2022) and Docket Item
EPA–R03–OAR–2022–0347–0059 for further
details.
135 Docket Items EPA–HQ–OAR–2021–0668–0115
and EPA–HQ–OAR–2021–0668–0096 examine
ozone season data from several mid-atlantic states
and identifies best performing months for several
units. An examination of operating data on a
monthly or daily basis over the course of a calendar
year indicates that several units, such as Pleasants
Power Station 1 and 2 (WV), Conemaugh 2 (PA),
and DB Wilson W1 (KY) operate at much lower
NOX emission rates during ozone season months.
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negotiated settlement in which
allowable emissions limits may be
established as part of injunctive relief,
and may not necessarily be
representative of SCR technical
capabilities. Therefore, we find that
ADEQ’s analysis of other tangentially
fired coal units in CAMPD is not
determinative of the SCR emissions rate
achievable for the SGS units.
Finally, though we appreciate the
summary provided in Table 3 of the
comment letter, the analysis is new
information not included in the Plan.
This information would need to be part
of a SIP revision subject to review by the
public and FLMs in order for the EPA
to consider it as part of the long-term
strategy.
Comment D.7. TEP asserts that ADEQ
reasonably determined that SO2
emissions limits were an appropriate
and equivalent control measure
compared to SDA upgrades. TEP notes
that while the EPA suggests that TEP
should also be required to install the
SDA upgrades in addition to the massbased limits, the EPA does not explain
why SDA upgrades would achieve
emissions reductions beyond the massbased limits adopted by TEP, which are
equivalent to SDA upgrades.
Further, TEP states that the selection
of emissions limits is consistent with
the CAA and is entitled to deference.
First, TEP reasons that the CAA does
not require the installation of specific
control technologies, and that the EPA
has recognized in the 2019 Guidance
that mass-based limits may be a
reasonable alternative to specific control
technologies, particularly where fixed
capital costs are high, so long as such
limits do not enable a source to cease
operating an existing control
technology. Second, TEP asserts that the
emissions limits are equally or more
protective than control technologies
because the total SO2 emitted cannot
exceed the caps, and whether one or
both units is operating is irrelevant, and
because it provides the flexibility for
greater total emissions reductions to
occur, should TEP ultimately retire SGS
Unit 1 in 2027. The commenter specifies
that if TEP elects to achieve compliance
with the proposed caps by shutting
down Unit 1, it is projected to reduce
SO2 emissions by 2,982 tpy and achieve
significant reductions in NOX and PM
emissions, whereas the installation of
SDA upgrades at both units is projected
to reduce SO2 emissions by 2,122 tpy.
Third, TEP asserts that the emissions
limits are consistent with EPA
precedent. TEP listed previous
examples of EPA-approved mass-based
emissions limits, such as the Hawaii
Regional Haze FIP for three Hawaiian
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Electric facilities 136 and the Regional
Haze FIP for PCC.137
Response D.7. We disagree with TEP’s
assertions that the selection of massbased SO2 emissions limits for SGS
Units 1 and 2 was reasonable for the
reasons described in Section IV.E.2.c.iii
of our proposal,138 and Response B.8 of
this document.
We also disagree with TEP’s assertion
that the EPA did not explain why SDA
upgrades would achieve emissions
reductions beyond the mass-based
limits adopted by ADEQ. As stated in
the proposed rule,139 because the limits
are set across two units and the ton per
day (tpd) limit is based on a 30calendar-day average (rather than a 30day-boiler-operating day average),140
they would not meaningfully constrain
the emissions from one unit during
periods when the other unit is not
operating. In particular, the annual SO2
cap of 3,739 tpy is significantly higher
than ADEQ’s projected 2028 SO2
emissions for either Unit 1 or Unit 2
(2,869 and 2,982 tpy, respectively) 141
and nearly double each unit’s recent
emissions (1,980 and 1,988 tpy
respectively on average 2021–2023).142
Accordingly, if TEP shuts down SGS
Unit 1 by 2028, as it has stated it intends
to do,143 Unit 2 would be able to emit
3,739 tpy SO2 in 2028, nearly double
what it emitted on average in 2021–2023
and significantly more than the 2,982
tpy it is projected to emit in the absence
of a cap and closure of Unit 1. In
contrast, a lb/MMBtu limit representing
SDA upgrades on each unit would
ensure emissions from Unit 2 would be
reduced by approximately 1⁄3 from
recent emissions levels (i.e., a reduction
of roughly 663 tpy) even if Unit 1 ceases
operation. Therefore, under the scenario
projected by TEP to occur in 2028 (i.e.,
closure of SGS Unit 1), implementation
of SDA upgrades at Unit 2 would
achieve significant emissions reductions
beyond the mass-based limits adopted
by ADEQ.
136 77
FR 61478 (October 9, 2012).
FR 52420.
138 89 FR 47398, 47430–47431.
139 Id.
140 A limit based on boiler operating days would
effectively exclude days with zero emissions from
the calculation of the 30-day average whereas a
limit based on calendar days does not.
141 Plan, appendix C, p. 213, Table 83.
142 Emissions information can be publicly
accessed through the EPA Clean Air Markets
Program data, available at https://campd.epa.gov/.
143 As part of its preferred alternative in its 2023
Integrated Resources Plan, p. 56, TEP states that
‘‘Initially, the units will alternate idling between
spring and fall (both seasons include the adjacent
winter months). TEP plans to transition Unit 1 to
summer-only operations prior to full retirement at
the end of 2027.’’
137 79
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We also note that, if SGS Unit 1 does
not close and both units continue
operation at roughly the same level as
2021–2023, a lb/MMBtu limit
representing SDA upgrades on each unit
would ensure emissions from both Unit
1 and Unit 2 would be reduced by
approximately 1⁄3 (i.e., a reduction of
roughly 1,323 tpy based on 2021–2023
emissions), whereas ADEQ’s annual cap
of 3,739 tpy would only ensure
reductions of 229 tpy (i.e., compared to
total 2021–2023 annual average
emissions of 3,968). Therefore, we
expect that lb/MMBtu limits
representing SDA upgrades on each unit
would achieve significantly greater
emissions reductions than the two-unit
mass-based limits adopted by ADEQ.
For similar reasons, we also do not
agree with TEP’s statements that ‘‘the
proposed form of the limit is potentially
more environmentally protective than
the installation of controls because it
provides the flexibility for greater total
emission reductions to occur, should
TEP ultimately retire SGS Unit 1 in
2027’’ and that ‘‘[r]equiring the use of
air pollution control technology at each
unit individually would foreclose a
more environmentally beneficial
compliance option.’’ Specifically, TEP
incorrectly cites Table 83 as supporting
its assertion that if it ‘‘elects to achieve
compliance with the proposed caps by
shutting down Unit 1, it is projected to
reduce SO2 emissions by 2,982 tpy and
also to achieve significant reductions in
NOX and PM emissions.’’ This
mischaracterizes the content of Table
83, which reflects ADEQ’s baseline
projection of emissions at the TEP units,
based on emissions and throughput data
for 2016, 2018 and 2019.144 These
values were the starting point for
ADEQ’s four-factor analysis and do not
represent the projected emissions of
these units following implementation of
the emissions caps and/or the closure of
Unit 1. No such projection is included
in the Plan. However, as noted in the
preceding paragraph, if TEP shuts down
SGS Unit 1 by 2028, as it has stated it
intends to do, Unit 2 could emit as
much as 3,739 tpy SO2 in 2028, nearly
double what it emitted on average in
2021–2023 and significantly more than
the 2,982 tpy it is projected to emit in
the absence of a cap and closure of Unit
1.
Third, in response to TEP’s claim
about EPA precedent, both FIP actions
cited by TEP apply to first planning
period requirements and thus preceded
the 2017 revisions to the RHR, which
added 40 CFR 51.308(f). Please see
Response B.8 for more information
144 Plan,
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about PCC. The other precedent cited by
ADEQ, a cap on the Hawaiian Electric
sources, was not based solely on a
determination that a particular control
measure was necessary to make
reasonable progress under the four
statutory factors. Rather, the cap was
intended primarily to ensure that no
degradation in visibility conditions
would occur at the affected Class I area
during the first or subsequent planning
periods, as required under the RHR.145
This was based on circumstances that
were specific to Hawaii in the first
planning period, namely, that no
photochemical modeling had been
performed for Hawaii’s Class I areas and
the EPA set the RPGs for these areas
based on island-specific emissions
inventories.146 None of these
circumstances apply to Arizona
generally, or to SGS Units 1 and 2
specifically, in the second regional haze
planning period and thus are
inappropriate to rely upon.
Comment D.8. TEP comments that
ADEQ reasonably rejected additional
control measures based on the four
factors. For remaining useful life
specifically, TEP indicates that a 20-year
remaining useful life is more
appropriate for SGS Units 1 and 2
because the shutdowns are publicly
documented in the 2023 IRP. TEP cites
the 2021 Clarifications Memo as stating,
‘‘reasonable bases for projecting that
future emissions will be significantly
different than past emissions are
enforceable requirements and energy
efficiency, renewable energy, or other
similar programs, where there is a
documented commitment to participate
and a verifiable basis for quantifying
changes in future emissions.’’ 147 TEP
noted that consistent with this
guidance, TEP’s planned retirement of
these units significantly shortens the
remaining useful life of any controls and
projected emissions reductions, and a
20-year remaining useful life is a
reasonable, conservative basis to
analyze cost-effectiveness of additional
controls.
Response D.8. We disagree that 20
years is a reasonable remaining useful
life for SGS Units 1 and 2. The portion
of the 2021 Clarifications Memo cited by
TEP concerns setting emissions limits
for control measures found necessary to
make reasonable progress, not
remaining useful life. Therefore, this
145 77 FR 31692, 31712 (May 29, 2012) (‘‘without
further control, emissions of SO2 on the Big Island
are projected to increase by nearly 4% between
2005 and 2018. Therefore, additional, federally
enforceable SO2 reductions are needed on the Big
Island to ensure reasonable progress.’’)
146 Id. at 31708.
147 2021 Clarifications Memo, p. 12.
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citation does not support TEP’s
assertion. Additionally, the 2019
Guidance and Clarifications Memo
clearly indicate that, under the RHR,
where a shutdown date is used to
shorten a source’s remaining useful life
as part of a reasonable progress
determination, an enforceable
requirement to shutdown must be
included in the SIP and/or be federally
enforceable.148 The potential shutdowns
of SGS Units 1 and 2 are not federally
enforceable. Therefore, they cannot be
relied upon to shorten the remaining
useful life of these units. In the absence
of an enforceable requirement for SGS
Units 1 and 2 to retire, we do not agree
that a 20-year remaining useful life is
reasonable.
Comment D.9. TEP comments that
ADEQ reasonably rejected additional
control measures in part by considering
incremental costs. TEP noted that ADEQ
determined incremental costs for
additional controls would range from
$9,400–13,500/ton, and that even the
low end of this range exceeded similar
incremental costs that the EPA
determined to be excessive for sources
in Arizona as part of the 2014 BART
FIP.149
TEP further states that ADEQ
reasonably considered incremental costeffectiveness where the cost impacts
were not clear due to uncertainty in the
remaining useful life of the additional
controls. Citing American Corn Growers
Association vs. EPA, TEP states that it
is reasonable for a state to consider
incremental visibility improvements
and other incremental metrics to inform
its assessment of whether a particular
control is ‘‘too costly . . . for a
particular source.’’ 150 TEP notes that
such an assessment does not give
‘‘controlling weight’’ to the cost factor,
but rather considers whether, on
balance, it would be unreasonable to
require installation of a control,
consistent with the language of CAA
section 169A.
Lastly, TEP asserts that ADEQ
reasonably compared the costs of and
emissions reductions achievable with
wet FGD and circulating dry scrubbers
(CDS) to the costs of and emissions
reductions achievable with SDA
upgrades, even where such upgrades
were not required to be installed. The
commenter argues that ADEQ
reasonably used SDA upgrades as a
proxy for its mass-based emissions
148 2019 Guidance, p. 34 (citing 40 CFR
51.308(f)(2)); Clarifications Memo, p. 10.
149 79 FR 9318, 9341, Table 24 (rejecting DSI
based on incremental costs of $8,576/ton compared
to lower sulfur fuel blend).
150 American Corn Growers Association v. EPA,
291 F.3d 1, 6–7 (D.C. Cir. 2002).
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limits, since these limits were
developed based on equivalence with
SDA upgrades and the EPA’s approach
for Hawaiian Electric.
Response D.9. We disagree that
ADEQ’s use of incremental cost
effectiveness was reasonable for the
reasons explained in Section IV.E.2.C.IX
of our proposal 151 and Response B.6 of
this document. We also note that, while
the commenter refers to ‘‘similar
incremental costs that the EPA
determined to be excessive for sources
in Arizona as part of the 2014 BART
FIP,’’ the accompanying citation refers
to only to a single source, i.e., Nelson
Lime Kiln, which is the same source
cited by ADEQ in the Plan.
We also find that the commenter’s
citation to American Corn Growers is
inapposite. That decision concerned the
EPA’s interpretation of the BART
provisions of the CAA and turned on
the fact that the CAA includes the ‘‘the
degree in improvement in visibility that
would be expected at each Class I area
as a result of imposing BART’’ as one of
five factors to be considered in BART
determinations.152 In contrast, the Act
does not mandate visibility
improvement as one of the four factors
to be considered in determining
reasonable progress.153 As discussed in
Response B.7, ADEQ indicated in its
Response to Comments that it did not
consider this factor in its
determinations.154 Furthermore, even if
ADEQ did consider visibility
improvement in making control
determinations for SO2 at SGS Units 1
and 2,155 it is evident that ADEQ did not
consider incremental visibility
improvement associated with Wet FGD
compared to SDA upgrades. Rather,
ADEQ considered only ‘‘a hypothetical
SO2 emission reduction of 3,236 tpy,
which is approximately equivalent to
0.08 lb/MMBtu for SGS Units 1 and
2.’’ 156 This level of reductions does not
correspond either to SDA upgrades or
wet FGD, so ADEQ could not possibly
have considered the incremental
visibility benefit between the levels of
control. Accordingly, American Corn
Growers has no bearing on our
assessment of whether ADEQ’s
approach to its four factor analyses and
151 89
FR 47398, 47429.
(interpreting CAA section 169A(g)(2)).
153 CAA 169A(g)(1).
154 2022 Arizona Regional Haze Plan, Appendix
K, p. 9.
155 See 2022 Arizona Regional Haze Plan,
Appendix C, p. 234 (‘‘small visibility benefits
associated with the modeled SO2 controls supports
the determination that CDS and wet FGD control
options are not necessary to make reasonable
progress towards natural visibility at Class I areas
during this implementation period’’).
156 Id.
152 Id.
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determinations for SGS Units 1 and 2
were reasonable.
In addition, we also disagree that
there is uncertainty in the remaining
useful life of SGS Units 1 and 2, because
the potential shutdowns at these units
are not federally enforceable. See
Response D.8.
Finally, we disagree that ADEQ
reasonably used SDA upgrades as a
proxy for its mass-based emissions
limits. See Responses B.8 and D.7.
Comment D.10. TEP states that the
EPA incorrectly implies that ADEQ
based its control determinations on
visibility benefits, when ADEQ stated
otherwise in its SIP submission.157
Second, TEP notes that any
consideration of visibility would be
consistent with recent EPA actions on
regional haze and the text of the statute.
Citing the EPA’s recent proposed action
on the Georgia Regional Haze SIP, TEP
states that the EPA emphasized
incremental visibility improvements
and that ‘‘Georgia is also not
contributing to visibility impairment at
any Class I areas above the URP.’’ 158
TEP claims that because Arizona has
similarly de minimis contributions to
visibility impairment at Class I areas,159
the EPA cannot apply inconsistent
criteria to its review of SIP submissions
by different states. Finally, citing Loper
Bright Enterprises v. Raimondo, 144 S.
Ct. 2244, 2263 (2024), TEP argues that
‘‘EPA’s suggestion that visibility should
play little-to-no role in a state’s
assessment of reasonable progress is
unreasonable and counter to the text of
the statute.’’
Response D.10. Regarding whether
ADEQ considered visibility benefits, in
its control determinations, please see
Response B.7.
We disagree that the EPA is applying
inconsistent criteria to review of SIP
submissions by different states. As
explained in Response D.2, in the
section of the Georgia action cited by
the commenter, the EPA considered
overall trends in visibility impairment
in evaluating the reasonableness of
Georgia’s source selection methodology.
This is entirely different from weighing
the potential visibility benefits of
specific controls at specific units, which
is what the commenter appears to be
advocating for. Additionally, the quoted
section of the Georgia proposal simply
states as a fact that Georgia is not
contributing to visibility impairment at
any Class I areas above the URP. That
157 2022 Arizona Regional Haze Plan, Appendix
K at 9 (explaining that visibility information ‘‘was
not considered in the Department’s emission
control measure determination’’).
158 Citing 89 FR 47481, 47498.
159 89 FR 47398, 47432, Table 21.
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information is not used and should not
be used as a ‘‘safe harbor’’ argument to
exclude contributing sources from a
four-factor analysis and potentially
including cost-effective controls in the
long-term strategy.
Moreover, we do not agree that
Arizona has de minimis contributions to
visibility impairment at Class I areas. In
support of this assertion, TEP cites
Table 21 on page 47432 of the proposal.
This table shows Baseline Conditions,
Adjusted URP and 2028 RPGs at
Arizona’s Class I areas. However, the
table provides no indication of which
sources contribute to visibility
impairment at these Class I areas, or
whether these sources are located in
Arizona or elsewhere. This table also
does not address any Class I areas
outside of Arizona. Furthermore, there
is no other information in the Plan that
suggests that emissions from Arizona
have de minimis contributions to
visibility impairment at all potentially
affected Class I areas. Therefore, we do
not agree that the EPA is applying
inconsistent criteria to review of SIP
submissions by different states.
Finally, we disagree that we suggested
that ‘‘visibility should play little-to-no
role in a state’s assessment of reasonable
progress.’’ Rather, we stated that
‘‘[w]hether a particular visibility impact
is meaningful should be assessed in
context and cannot be used to
undermine the four statutory factors that
are to be analyzed in order to determine
what measures are necessary for
reasonable progress.’’ 160 Applying these
considerations to ADEQ’s discussion of
visibility benefits at SGS Units 1 and 2,
we found that ‘‘[i]n the absence of any
opportunities for larger emissions
reductions and corresponding visibility
benefits, we find that ADEQ’s reliance
on ‘small’ visibility benefits as an
additional justification for not adopting
more stringent controls at these units is
not persuasive.’’ 161 Therefore, we do
not agree with the commenter’s
characterization of our proposal.
Comment D.11. TEP asserts that
ADEQ appropriately incorporated ‘‘onthe-way’’ measures in assessing baseline
conditions at IGS Unit 3. TEP cites the
2021 Clarifications Memo and states
that the EPA has explicitly recognized
‘‘on-the-way’’ measures that ‘‘have not
yet been implemented and the
associated emissions reductions have
not yet occurred as of the SIP
submission date,’’ and that the EPA
indicated that these measures may
impact a state’s choice of baseline for a
160 89 FR 47398, 47430 (citing 40 CFR
51.308(f)(2)(i)).
161 Id.
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four-factor analysis at a particular
source (‘‘reasonable bases for projecting
that future emissions will be
significantly different than past
emissions are enforceable requirements
and energy efficiency, renewable
energy, or other similar programs, where
there is a documented commitment to
participate and a verifiable basis for
quantifying changes in future
emissions’’).162 TEP claims that the
operational conditions at IGS Unit 3
have been incorporated in an
enforceable permit, and will become
effective upon approval of Arizona’s SIP
submission. TEP also claims that it has
a documented commitment to
complying with these limits by
requesting these permit limits.
Response D.11. TEP mischaracterizes
the contents of the 2021 Clarifications
Memo. The first section of the memo
cited by the commenter, entitled ‘‘Onthe-Way’’ Measures and Shutdowns,
states that ‘‘on-the-way measures . . .
are necessary to make reasonable
progress and must be included in a
SIP.’’ 163 In this case, because the IGS
Unit 3 limits have not taken effect under
State law, their inclusion as part of the
SIP revision is not meaningful, and they
are not an appropriate basis for
modifying the baseline control scenario
for a four-factor analysis.
The second portion of the 2021
Clarifications Memo cited by TEP
concerns setting emissions limits for
control measures that have been found
necessary to make reasonable progress.
It is not relevant to the question of the
extent to which existing measures may
be considered as part of the baseline for
a control analysis. Regarding this latter
question, the 2019 Guidance states that:
Enforceable requirements are one
reasonable basis for projecting a change in
operating parameters and thus emissions;
energy efficiency, renewable energy, or other
such programs where there is a documented
commitment to participate and a verifiable
basis for quantifying any change in future
emissions due to operational changes may be
another. A state considering using
assumptions about future operating
parameters that are significantly different
than historical operating parameters should
consult with its EPA Regional office.164
Again, the emissions limits at IGS
Unit 3 are not enforceable by the State
or the EPA unless and until the
resulting reasonable progress
determination is approved into the SIP.
Moreover, the permit conditions that
would implement the caps were
adopted specifically to meet regional
162 2021
Clarifications Memo, pp. 10, 12.
p. 10.
164 2019 Guidance p. 29 (emphases added).
163 Id.
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haze requirements and were not part of
‘‘energy efficiency, renewable energy, or
other such programs.’’ 165 Therefore, we
find that they are not a reasonable basis
for projecting a change in operating
parameters.
Comment D.12. TEP asserts that
ADEQ reasonably evaluated additional
control measures using a four-factor
analysis for IGS Unit 3 based on
excessive costs. TEP explains that each
of the NOX controls available for IGS
Unit 3 exceed Arizona’s cost threshold
of $6,500/ton, and ADEQ therefore
determined that no additional controls
were reasonable for the second planning
period. TEP also noted that while the
average cost of installing combustion
control retrofits at IGS Unit 3 was only
$230/ton above ADEQ’s $6,500/ton
threshold, the RHR does not prevent
states from implementing ‘‘bright line’’
cost-effectiveness thresholds when
considering additional control
measures.
Response D.12. We partly agree with
this comment. We agree that the NOX
controls analyzed for IGS Unit 3 exceed
the cost threshold of $6,500, when the
emissions limits in the permit (which
are not yet in effect) are considered as
part of the baseline control scenario.
However, as described in section
IV.E.2.c.iii of our proposal, and
Response D.11, we do not agree that
these limits are an appropriate basis for
modifying the baseline control scenario
for a four-factor analysis. We also agree
the RHR does not prevent states from
implementing ‘‘bright line’’ costeffectiveness thresholds, but we find
that ADEQ did not do so in a reasonable
or consistent manner in the Plan, as
discussed in Response D.4.
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E. Comment Letter From SRP
Sections I (‘‘Introduction’’), II
(‘‘Background’’), III (‘‘SRP Facilities
Subject to the Proposed Rule’’) and IV
(‘‘EPA Has Appropriately Proposed
Approval of Several Aspects of
Arizona’s Regional Haze SIP’’) of SRP’s
comment letter either provide
background information or are
supportive and therefore do not require
a response. We respond to sections V–
XI of SRP’s comment letter below.
Comment E.1. SRP comments that the
proposed rule is vague and deprives the
public of an adequate opportunity for
comment. Citing American Iron & Steel
165 See, e.g., 2022 Arizona Regional Haze Plan,
Appendix C, p. 197 (describing TEP’s submittal of
permit application for NOX caps in response to
ADEQ’s initial regional haze control determination);
Appendix G, p. 58 (‘‘The purpose of the proposed
SIP and significant permit revision is to support
ADEQ’s forthcoming periodic comprehensive
regional haze SIP submittal to EPA.’’).
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Institute v. EPA, SRP notes that the EPA
is obligated to provide the public with
information sufficient to facilitate
public comment on the proposal, and
that it is not clear which grounds for the
proposed partial disapproval of the SIP
submission apply to which sources. SRP
provides a few examples of allegedly
vague language in the proposed rule, for
example, noting ‘‘some’’ of Arizona’s
four-factor analyses were affected in a
few instances. SRP asserts that because
it is not clear which aspects of the EPA’s
analysis apply to which facilities, the
public cannot reasonably evaluate the
grounds for the proposed disapproval
actions, and therefore the EPA needs to
issue a new proposed rule that provides
additional necessary detail in support of
the proposed actions.
Response E.1. We disagree with this
comment. In American Iron & Steel
Institute,166 the court denied, in part,
review of an EPA interim final rule due
to a lack of proper notice. However, as
described in Response A.1, we do not
agree that the proposed rule deprives
the public of an adequate opportunity
for comment.
We also note that, in acting on the
2022 Arizona Regional Haze Plan, the
EPA is not issuing new requirements
applicable to any emissions sources.
Rather, this final partial disapproval
establishes a two-year deadline for the
EPA to promulgate a FIP to address the
relevant requirements under CAA
section 110(c), unless the EPA approves
a subsequent SIP submission that meets
these requirements. Accordingly,
Arizona can develop and submit a SIP
revision addressing the disapproved
elements of the Plan. Both the state’s
adoption of that SIP revision and the
EPA’s subsequent action on that SIP
revision would be subject to public
notice and comment requirements.167
Similarly, if the EPA does not fully
approve a SIP submission addressing
the disapproved elements of the Plan,
any FIP promulgated by the EPA would
be subject to public notice and
comment. Accordingly, there will be
ample additional opportunities for the
public, including potentially regulated
entities, to engage in the rulemaking
process before any additional
requirements take effect.
Comment E.2. SRP asserts that the
EPA should approve Arizona’s
determination that Coronado Generating
Station and SGS Unit 4 are effectively
controlled because they are consistent
with the law and EPA guidance. SRP
166 See 568 F.2d 284 (3d Cir.1977), cert. denied,
435 U.S. 914, 98 S.Ct. 1467, 55 L.Ed.2d 505 (1978).
167 See CAA section 110(l), 40 CFR 40 CFR
51.102, and 5 U.S.C. 553.
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states that the 2019 Guidance indicates
that sources that have recently installed
effective controls are the prime example
of sources that do not require evaluation
during the current planning period.
Specifically, SRP notes that the 2019
Guidance states that BART-eligible units
that installed and began operating
controls to meet BART emissions limits
for the first implementation period,
including sources that installed controls
to comply with a better-than-BART
alternative, may be considered to be
effectively controlled.
For Coronado, SRP states that the
source is subject to a better-then-BART
alternative that the EPA approved in
October 2017, and that there have been
no intervening changes in technology
since that time. SRP states that
Coronado will also install new controls
(SCR) to comply with the BART
alternative by January 2026.168 SRP
noted that the first planning period
regional haze SIP submission for
Coronado also includes two additional
requirements for SO2: an SO2 emissions
limit of 0.060 lb/MMBtu, calculated on
a 30-boiler-operating-day rolling average
and an annual plant-wide SO2
emissions cap of 1,970 tons per year.
SRP further asserts that SGS Unit 4 is
similarly well-controlled. ADEQ
determined that Unit 4’s existing
controls of combustion controls
(LNB+OFA) and SCR is the most
effective control technology available
for NOX for coal fired EGUs, and thus,
no further analysis for other control
technologies was needed. For SO2, Unit
4 is equipped with SDA systems subject
to the MATS rule and has been
achieving an SO2 emissions rate over
the most recent five years ranging from
0.076 to 0.10 lb/MMBtu on an annual
basis. For PM, Unit 4 is equipped with
a baghouse, which ADEQ found to have
the highest PM control efficiency of any
PM control considered for Unit 4.
Response E.2. Regarding Coronado
Generating Station, we agree that the
source was subject to a better-than
BART alternative. However, we note
that the commenter mischaracterizes the
contents of the 2019 Guidance regarding
effective control determinations for
BART-eligible sources. The relevant
portion of the Guidance includes as an
example of potentially effective
controls, ‘‘BART-eligible units that
installed and began operating controls
to meet BART emission limits for the
first implementation period, on a
168 SRP cited in the comment letter, but we note
that the correct citation is 82 FR 46903 (October 10,
2017).
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pollutant-specific basis.’’ 169 The
Guidance further explains that:
Although the Regional Haze Rule
anticipates the re-assessment of BARTeligible sources under the reasonable
progress Rule provisions, if a source
installed and is currently operating
controls to meet BART emission limits,
it may be unlikely that there will be
further available reasonable controls for
such sources. However, states may not
categorically exclude all BART-eligible
sources, or all sources that installed
BART controls, as candidates for
selection for analysis of control
measures.
The associated footnote clarifies that
this consideration is not applicable to
BART-subject units for which the BART
requirement was met in whole or in part
by emissions reductions at other units
as part of a better-than-BART alternative
or trading program.170
As discussed in our proposal and
Response B.3 of this document, ADEQ
excluded all units that installed BART
(or better-than-BART) controls between
2014 and 2028 for any pollutant. We
therefore disagree that Arizona followed
the 2019 Guidance in evaluating
effective controls because it
categorically excluded all such units
without considering whether the unit in
question installed effective controls for
NOX, SO2 and PM10, or whether the
BART requirement was met in part by
reductions at other units as part of a
better-than-BART alternative.
Regarding SGS Unit 4, see Response
D.2.
Comment E.3. SRP states that the
EPA’s assumed emissions rate for SCR
controls of 0.05 lb/MMBtu is not
feasible at coal-fired EGUs. SRP asserts
that the EPA cannot assume all coalfired units are capable of the same
efficiencies following pollution control
installation or that these controls incur
the same costs for each unit nationwide,
irrespective of the local conditions and
operations impacting individual units.
SRP further notes that the EPA’s
conclusion that all SCR retrofitted units
can uniformly meet a NOX emissions
limit of 0.05 lb/MMBtu without proper
evaluation and consideration of
individual units is arbitrary and
capricious and may unlawfully impose
limits on EGUs that are unachievable.
SRP further points out that the cited
Srivastava et al. study notes units that
achieved NOX emissions rates between
0.04 and 0.07 lb/106 Btu, and that this
range illustrates the variability
associated with SCR-controlled coalfired unit NOX emissions rates and the
169 See
170 Id.,
2019 Guidance, p. 25 (emphasis added).
n. 54.
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importance of considering unit-specific
factors when identifying a controlled
emissions rate.
Citing Appendix K of the Plan, SRP
further asserts that ADEQ specifically
addressed unit-specific considerations
when setting the SGS Unit 1 and 2 NOX
emissions rates by reviewing CAMPD
data. By assuming an SCR controlled
NOX emissions rate of 0.06 lb/MMBtu,
ADEQ is assuming that SGS Units 1 and
2 will achieve a controlled emissions
rate within the top 21 percent of
tangentially-fired EGUs. SRP indicates
that without acknowledging ADEQ’s
evaluation, the EPA states that ADEQ
did not provide adequate justification
and unreasonably assumes an emissions
rate within the top 5 percent of SCR
controlled tangentially-fired EGUs is
appropriate for the SGS Unit 1 and 2.
SRP concludes that while the state made
reasonable conclusions as to the
emissions rates achievable by SCR at
specific facilities, the EPA has not.
Response E.3. We disagree that the
EPA has assumed that all coal-fired
units are capable of the same
efficiencies following pollution control
installation or that these controls incur
the same costs for each unit. As
described in Responses B.4 and D.6, we
have considered unit-specific factors in
evaluating the emissions rates
achievable with SCR at SGS Units 1 and
2, and we are not aware of any
assertions that SGS specifically cannot
achieve 0.050 lb/MMBtu when
operating with SCR during periods of
normal operation. Therefore, we find
that ADEQ should have considered a
controlled NOX emissions rate of 0.050
lb/MMBtu for SGS Units 1 and 2 when
operating with SCR during periods of
normal operation. As further explained
in Response B.4, this does not mean that
0.050 lb/MMBtu would be an
appropriate 30–BOD limit for these
units, but rather that it should be
considered as annual emissions rate for
purposes of the control cost analysis.
Comment E.4. SRP comments that it
is not necessary to include control
requirements for Coronado Generating
Station in Arizona’s Regional Haze SIP.
SRP states that under CAA section
169A, a state (or the EPA) may only
require a long-term strategy to include
those control measures that are found to
be necessary to make reasonable
progress through the evaluation of the
four statutory reasonable progress
factors. SRP claims that the EPA’s
position that in the absence of a fourfactor analysis supporting new controls,
existing controls should generally be
deemed necessary to make reasonable
progress and be included in the regional
haze SIP is not a valid reading of the
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CAA’s visibility provisions. Further,
SRP claims that the CAA framework ties
reasonable progress controls to the fourfactor analysis, and does not leave room
for the EPA’s presumption that existing
controls must be included in a SIP even
whenever a four-factor analysis failed to
identify new controls that should be
implemented. Such existing controls
may only be deemed necessary
components of a regional haze SIP if a
four-factor analysis independently
identifies such controls as necessary for
reasonable progress.
SRP further cites both the 2021
Clarifications Memo (‘‘There may be
other cases where, after having
conducted robust source selection and
rigorous analysis of the four factors,
states have not identified any new
measures that are reasonable to require
for a source. In such cases, states will
have to address whether the source’s
existing measures are necessary to make
reasonable progress’’) and 2019
Guidance: (‘‘[i]f a state determines that
an in-place emission control at a source
is a measure that is necessary to make
reasonable progress and there is not
already an enforceable emission limit
corresponding to that control in the SIP,
the state is required to adopt emission
limits based on those controls as part of
its long-term strategy in the SIP via the
regional haze second planning period
plan submission’’). SRP claims that the
EPA therefore acknowledged that there
should be no presumption that existing
measures are needed for reasonable
progress.
Lastly, SRP states that Coronado
Generating Station is already subject to
a source-specific SIP revision that was
designed to implement the better-thanBART alternative during the first
planning period of the regional haze
program. SRP asserts that because these
requirements are already binding and
enforceable, there is no need for any
additional action to address Coronado.
Response E.4. First, we disagree that
existing controls being necessary for
reasonable progress does not have a
basis in the statute for two reasons.
First, under CAA 169A(a)(1), the
national visibility goal is generally
seperated into two parts: (1) the
prevention of any future, and (2) the
remedying of any existing
anthropogenic visibility impairment. As
noted in the proposed rule,171 and in
response B.1, continued implementation
of the source’s existing measures is
generally necessary to prevent future
emissions increases and thus necessary
171 89
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to make reasonable progress towards the
national goal.
Second, control measures used to
fulfill a CAA requirement must be in the
SIP.172 In this instance, in order to make
reasonable progress toward the national
goal, the CAA requires every regional
haze SIP to contain ‘‘such emission
limits, schedules of compliance, and
other measures as may be necessary for
reasonable progress.’’ 173 The CAA also
requires each regional haze SIP
submission to include a long-term
strategy ‘‘for making reasonable progress
toward meeting the national goal.’’ 174
Finally, reasonable progress is defined
in the CAA as a consideration of the
four factors outlined in CAA 169A(g)(1).
If the State opts to avoid conducting the
required consideration of the four
statutory factors on a source or group of
sources based solely on the source’s
existing measures, then, in order to
fulfill its long-term strategy
requirements, those existing measures
must also be in the SIP, or else the state
must demonstrate that the existing
measures are not necessary to make
reasonable progress. This ensures that
this source’s contribution to visibility
impairment will not increase, and also
ensures that all measures being relied
upon to fulfill the regional haze
requirements are in the SIP. Therefore,
if Arizona is relying on existing
measures to avoid the statutorily
required four factor analysis, then those
existing measures must be in the SIP
and thus a part of its long-term strategy
for the second planning period, unless
the State demonstrates that they are not
necessary to make reasonable progress.
Additionally, we disagree that the
EPA’s guidance documents
acknowledged that there should be no
presumption that existing measures are
needed for reasonable progress. The
2021 Clarifications Memo is clear that,
under the CAA and the RHR, ‘‘when the
outcome of a four-factor analysis is that
no new measures are reasonable for a
source, the source’s existing measures
are generally needed to prevent future
visibility impairment (i.e., to prevent
future emission increases) and thus
necessary to make reasonable
progress.’’ 175 ADEQ did not provide
this analysis of whether existing
measures are necessary to make
reasonable progress.
Finally, while we agree that Coronado
Generating Station is already subject to
172 See Committee for a Better Arvin v. EPA, 786
F.3d 1169, 1175–77 (9th Cir. 2015).
173 CAA 169A(b)(2).
174 CAA 169A(b)(2)(B).
175 2021 Clarifications Memo, pp. 8–9 (emphasis
added).
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a source-specific SIP that was designed
to implement a better-than-BART
alternative for the first implementation
period, we do not agree that this
automatically means, without further
justification, that there is no need for
any additional action to Coronado in the
second implementation period for the
reasons described in E.2.
Comment E.5. SRP asserts that the
EPA should approve Arizona’s control
determinations and four-factor analyses
with respect to cost-effectiveness
thresholds, incremental costs,
compliance with the Control Cost
Manual, and consideration of visibility.
First, regarding cost-effectiveness
thresholds, SRP indicates that Arizona’s
cost-effectiveness threshold of $6,500/
ton is reasonable and should be
approved, along with the control
determinations the state made in
reliance on that threshold. SRP noted
other examples of cost-effectiveness
thresholds in other states (Georgia and
Arkansas) that are lower than the values
Arizona adopted. SRP also cites the
EPA’s recent proposal for Missouri that
cites a $6,060 to $7,600/ton threshold
from the Central Regional Air Planning
Association and Texas BART FIP
threshold range of $5,300/ton to $6,500/
ton that is consistent with the $6,500/
ton threshold adopted by Arizona.
Therefore, SRP concludes that ADEQ’s
threshold is reasonable and represents a
conservatively high threshold from a
historical perspective.
Second, regarding incremental costs,
SRP asserts that the EPA provided no
rationale for finding ADEQ’s approach
unreasonable, and that it was
appropriate to only consider
incremental costs if a simple dollar-perton analysis suggests a control might be
cost-effective in the absence of more
nuanced information. SRP notes that
suggesting that states cannot reasonably
take incremental costs into account to
reject control requirements far exceeds
the EPA’s statutory authority, citing the
court decision in American Corn
Growers Association vs. EPA as stating
that ‘‘[t]he Haze Rule calls for states to
play the lead role in designing and
implementing regional haze program to
clear the air in national parks and
wilderness areas.’’ SRP further states
that the EPA states that Arizona
considered only a single BART
determination in finding that
incremental costs of $9,400–13,500/ton
were excessive, but this value is in line
with past EPA actions finding
incremental costs excessive.176
176 See, e.g., 79 FR 9318, 9342 (rejecting controls
based on incremental costs of $8,803 and $8,576/
ton); 76 FR 80754, 80756 (December 27, 2011)
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Third, regarding compliance with the
Control Cost Manual, SRP states that the
EPA did not provide enough
information for the public to tell what
it considers to be the full range of the
deviations from the Cost Control
Manual, except for some of the State’s
remaining useful life values. SRP asserts
that the EPA’s rules specifically allow
for deviations from the Manual’s
methodology and sample calculations
and values whenever site-specific
information is more accurate.
Lastly, regarding consideration of
visibility, SRP asserts that the EPA
appears to place inappropriate limits on
Arizona’s consideration of visibility
impacts as part of its assessment of
reasonable progress, and that the State
took visibility into account as additional
confirmation that controls were not
reasonable. SRP also states that the EPA
has provided no context or analysis for
stating that visibility impacts must be
assessed in context to determine if they
are truly meaningful and justify
expensive control requirements. SRP
points out that Table 10–5 of the 2022
Arizona Regional Haze Plan shows that
natural visibility is projected to occur at
all statewide sites between 2028 and
2056, well ahead 2064 natural
conditions. SRP concludes that Arizona
appropriately determined that controls
were not reasonable for SGS when
visibility is rapidly improving, costs are
over or very near a reasonable cost
threshold, and where visibility
improvements from potential controls
would be relatively small.
Response E.5. The EPA disagrees with
this comment for a number of reasons.
First, with respect to cost-effectiveness
thresholds, the EPA clarifies that we are
not disapproving Arizona’s average costeffectiveness threshold specifically, but
rather, finds that the State
inconsistently applied the threshold and
did not adequately justify how this
approach resulted in a reasonable set of
control measures in the long-term
strategy for the second planning period.
We also note that the fact that other
states have applied lower or similar
thresholds does not automatically make
Arizona’s threshold reasonable. For
further explanation on this point, see
Response D.4.
Second, with respect to incremental
costs, contrary to the commenter’s
assertion, our proposed rule did not
suggest that Arizona cannot consider
incremental costs. However, we reiterate
that, if a state chooses to consider
incremental costs, it must do so in a
reasonable and consistent manner and
(rejecting controls based on incremental costs of
$5,367/ton).
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that Arizona did not do so in the Plan.
See Responses B.6, B.8, and D.9.
Third, with respect to compliance
with the Control Cost Manual, we note
that, in addition to discussing remaining
useful life values, we cited an example
of where the State used an interest rate
that was above the then-current prime
rate without adequate
documentation.177 While we agree with
the commenter that States can deviate
from the Cost Control Manual’s
methodology and sample calculations
and values whenever site-specific
information is more accurate, ADEQ did
not provide such relevant site-specific
documentation. In situations where an
enforceable shutdown date does not
exist, the remaining useful life of a
control under consideration should be
the full period of the useful life of that
control as recommended by the EPA’s
Control Cost Manual.178 See Responses
A.1 and C.4.
With respect to consideration of
visibility, we disagree that the EPA has
provided no context or analysis for
stating that visibility impacts must be
assessed in context. On the contrary, in
our proposed notice, we explained why
the evaluation and control of smaller
and better-controlled sources in Arizona
may be necessary to achieve the
national goal.179 However, we also
noted that SGS specifically is by far the
largest emissions source analyzed by
ADEQ in the 2022 Arizona Regional
Haze Plan and ADEQ found that Units
3 and 4, as well as Units 1 and 2 for
PM10, were effectively controlled,
leaving only NOX and SO2 at Units 1
and 2 as providing an opportunity for
further control at this source.180 In
addition, we cited to portions of the
2019 Guidance and Clarifications Memo
that provide additional
recommendations to states that visibility
improvements could reasonably be
considered in conjunction with a fourfactor analysis. To the extent that the
commenter is arguing that the EPA
should have provided our own analysis
of visibility impacts, we disagree. The
EPA’s role in reviewing SIP submittals
is to assess their compliance with
applicable requirements, not to address
those requirements ourselves, as we
would be obligated to do in a FIP.
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177 89
FR 47398, 47429.
Guidance, pp. 33–34. See also 40 CFR
51.308(f)(2)(iii) (‘‘The State must document the
technical basis, including modeling, monitoring,
cost, engineering, and emissions information, on
which the State is relying to determine the emission
reduction measures that are necessary to make
reasonable progress in each mandatory Class I
Federal area it affects’’).
179 89 FR 47398, 47430.
180 Id.
178 2019
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Regarding Table 10–5, we note that
this table is based on Arizona’s RPGs,
and that contrary to SRP’s suggestion,
ADEQ did not cite or discuss this table
or otherwise reference its RPGs in
making its control determinations.
Furthermore, as explained in our
proposal ‘‘[b]ecause RPGs are the
modeled result of the measures in states’
long-term strategies (as well as other
measures required under the CAA), they
cannot be determined before states have
conducted their four-factor analyses and
determined the control measures that
are necessary to make reasonable
progress.’’ 181 Accordingly, we do not
agree that Arizona did or should have
considered the information in Table 10–
5 in making its control determinations.
We also note that the commenter
mischaracterizes the contents of this
table, insofar as the ‘‘projected date of
natural visibility for SYCA’’ is 2089,
which is well after 2064. See also
response C.5.
In sum, we disagree that Arizona
appropriately determined that controls
were not reasonable for SGS for the
reasons described in this response,
elsewhere in this document and in our
proposal.
Comment E.6. SRP claims that the
EPA improperly asserts that Arizona’s
SIP must require installation of specific
control technologies, specifically with
regards to SDA upgrades at SGS Units
1 and 2. SRP states that the regional
haze program has not been used to
impose requirements to install and
operate specific technologies, and that
some states have made use of emissions
caps rather than emissions rates and
other creative tools to address regional
haze requirements, including Coronado
Generating Station during the first
planning period.
Response E.6. We agree with the
commenter that ADEQ was not
obligated to require installation of a
particular control. However, the State is
obligated to set emissions limitations or
establish other measures corresponding
to the controls that it determined to be
necessary to make reasonable
progress.182 See also Response B.8
where we note issues with ADEQ’s
181 Id.
at 47405.
169A(b)(2) (‘‘. . . each applicable
implementation plan for a State . . . which may
reasonably be anticipated to cause or contribute to
any impairment of visibility . . . [must] contain
such emissions limits, schedules of compliance and
other measures as may be necessary to make
reasonable progress[.]’’); 40 CFR 51.308(f)(2) (‘‘Each
State must submit a long-term strategy that
addresses regional haze visibility impairment . . .
the long-term strategy must include the enforceable
emissions limitations . . . that are necessary to
make reasonable progress.’’); see also 2021
Clarifications Memo, pp. 8–9.
182 CAA
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provided rationale in justifying the
mass-based emissions caps at SGS and
IGS. Finally, we note that the example
of Coronado Generating Station was
under the better-than-BART provisions
of 40 CFR 51.308(e)(2), rather than the
provisions of 40 CFR 51.308(f), which
govern regional haze plans for the
second implementation period.
Comment E.7. SRP comments that the
EPA’s disapproval of 40 CFR
51.308(f)(3)(ii) for the Sycamore Canyon
monitor fails to acknowledge or address
critical monitoring deficiencies. SRP
noted that ADEQ’s determination that
monitor irregularities should preclude
the site from 40 CFR 51.308(f)(3)(ii)(A)
requirements, and that the EPA cannot
ignore the issues. SRP states that ADEQ
has shown that the site would have
experienced drastic visibility
improvements if not for the impact of
PM, and that the increases of coarse
mass and soil that occurred after the
monitor was relocated in 2015 shows
that the increasing trends of dust at the
monitor originate from local sources.
SRP further notes that the current
monitor location is not within the Class
I area, so it is unreasonable to assume
the local dust impacts experienced at
the monitor result in visibility
degradation within the Class I area. SRP
asserts that the EPA’s current
disapproval deprives the public of an
adequate opportunity to comment as the
EPA fails to discuss the monitoring
irregularities at the monitor. SRP claims
that the EPA’s disapproval of 40 CFR
51.308(f)(3)(ii) is arbitrary and
capricious because the action ignores
the facts presented by ADEQ, ADEQ’s
recommendation that the SYCA monitor
should not be used for long-term
progress analysis, and instead relies on
questionable monitoring data without
any discussion of its merits.
Response E.7. Please see Response
B.9.
Further, we do not agree that we
ignored ADEQ’s monitoring analysis.
On the contrary, we specifically
acknowledged this analysis in our
proposal.183 However, we found this
analysis was insufficient to meet the
requirements of 40 CFR
51.308(f)(3)(ii)(A), given the flaws in
ADEQ’s long-term strategy.
We also disagree with the
commenter’s assertion that ADEQ
determined that monitor irregularities
should preclude the site from 40 CFR
51.308(f)(3)(ii)(A) requirements. Rather,
ADEQ asserted that the Plan complied
183 See 89 FR 47398, 47433 (‘‘ADEQ provided a
discussion in its submission that explains how the
monitor was relocated in 2015 and experienced
increases in soil and coarse mass extinction.’’)
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with these requirements.184 We do not
agree with this assertion for the reasons
stated in our proposal and Response B.9
of this document. ADEQ also noted that
it will continue to monitor and
investigate the source of coarse mass
impacts at the monitor site during
subsequent progress reports and
periodic comprehensive Regional Haze
SIP revisions.185 We will work with
ADEQ and other stakeholders on the
consideration of this issue in the
development of future SIP revisions.
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F. Community Sign-On Letter
The Community Sign-On Letter is
supportive with three suggestions for
improvement. The supportive portions
of the letter do not require a response.
Comment F.1. The commenter
requests that the EPA confirm the
polluting facilities that ADEQ
improperly excluded from analysis in
the state’s plan.
Response F.1. Please see Response
A.1, which describes the EPA’s
approach to reviewing the Plan
generally and source selection
specifically.
Comment F.2. The commenter
requests that the EPA confirm the
specific errors in each of the selected
source’s review of pollution controls.
Response F.2. We have explained the
bases for our partial disapproval with
respect to 40 CFR 51.308(f)(2) in our
proposal and elsewhere in this
document. Therefore, the EPA’s
disapproval of 51.308(f)(2) is justified.
Comment F.3. The commenter
requests that the EPA consider the
equity and environmental justice
impacts of the state’s plan and
maximize the environmental justice cobenefits of haze pollution reduction
opportunities.
Response F.3. The regional haze
statutory provisions do not explicitly
address considerations of environmental
justice, and neither do the regulatory
requirements of the second planning
period in 40 CFR 51.308(f), (g), and (i).
As explained in ‘‘EPA Legal Tools to
Advance Environmental Justice,’’ 186 the
CAA provides states with the discretion
to consider environmental justice in
developing rules and measures related
to regional haze. While a State may
consider environmental justice under
184 Plan p. 106 (‘‘In accordance with 40 CFR
51.308(f)(3)(ii)(A), Arizona has provided robust
documentation in support of the state’s source
selection criteria and reasonable progress
determinations for selecting measures for inclusion
in its long-term strategy.’’)
186 See EPA Legal Tools to Advance
Environmental Justice, May 2022, available at
www.epa.gov/system/files/documents/2022-05/
EJ%20Legal%20Tools%20May
%202022%20FINAL.pdf at 35–36.
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the reasonable progress factors, neither
the statute nor the RHR requires states
to conduct an environmental justice
analysis for the EPA to approve a SIP
submission. Furthermore, the CAA and
applicable implementing regulations
neither prohibit nor require such an
evaluation of environmental justice with
regard to a regional haze SIP
submission. The EPA is not identifying
environmental justice as a basis for its
decision to partially approve and
partially disapprove Arizona’s SIP
revision.
G. Comment Letter From NPCA et al.
Sections I (‘‘Background’’) and II
(‘‘EPA’s Proposed Rule Correctly
Disapproves ADEQ’s Approach To
Source Selection, Four-Factor Analyses,
Control Determinations, and Reasonable
Progress Goals’’) of the NPCA et al.’s
comment letter either provide
background information or are
supportive and therefore do not require
a response. We respond to sections III–
VI of the NPCA et al.’s comment letter
below.
Comment G.1. NPCA et al. request the
EPA to be more specific about the point
sources of concern. First, the commenter
states that in the final rule, the EPA
should list the sources that ADEQ
improperly screened out and failed to
conduct a four-factor reasonable
progress analysis for, namely Apache
Unit 3. Cholla Units 1, 3–4, Coronado,
ASARCO Hayden Smelter, LhoistNelson Lime Plant, Apache Nitrogen,
Freeport-McMoRan Miami Smelter.
Second, the commenter states that the
EPA should list each point source for
which the EPA is disapproving ADEQ’s
control determinations, namely SGS
Units 1 and 2 NOX and SO2 analyses,
SGS 3 and 4 SO2 analyses, IGS 3 and 4
NOX analyses, Williams Compressor
Station NOX analysis, Wilcox
Compressor Station NOX analysis, Drake
Cement Plant NOX and SO2 analyses,
and Phoenix Cement-Clarkdale Plant,
NOX and PM10 analyses.
Response G.1. See Response A.1. The
EPA is disapproving long-term strategy
as a whole. Any subsequent SIP revision
developed by the State, or FIP
developed by EPA, will need to
establish a long-term strategy in
accordance with the regulatory
requirements. 40 CFR 51.308(f)(2).
Comment G.2. NPCA et al. comment
that the EPA must consider the equity
and environmental justice impacts of its
action on Arizona’s Regional Haze SIP.
The commenter indicates that the EPA
guidance documents direct states to
consider the broader environmental
implications of their regional haze
plans, by requiring an analysis of the
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‘‘non-air quality environmental impacts
of compliance,’’ including
environmental justice, and that
meaningful outreach and engagement to
environmental justice communities is
crucial. NPCA et al. request ADEQ and
the EPA to conduct meaningful
outreach, substantively incorporate
equity and environmental justice into
the SIP revision and the supporting
technical documents, such as preparing
maps that detail the location of
environmental justice communities in
Arizona and the location of nearby
visibility-impairing sources. The
commenters specify that a number of
visibility-impairing sources in Arizona
are located near vulnerable
communities, yet ADEQ did not
conduct a four-factor analysis for many
of these sources.
Response G.2. See Response F.3.
NPCA et al. provided additional
demographic information for
communities near several sources in
Arizona. Without agreeing with the
particular relevance or accuracy of this
information, the EPA acknowledges the
demographic information provided as
part of the comment. As discussed in
our proposal and in this document, the
EPA has evaluated Arizona’s SIP
submission against the statutory and
regulatory regional haze requirements
and determined that it has not satisfied
certain minimum requirements.
Comment G.3. NPCA et al. note that
the EPA must disapprove ADEQ’s
adjustments to the URP glidepath for
each Class I area. The commenter asserts
that the EPA can only approve these
URP glidepath adjustments if it
determines ADEQ used ‘‘scientifically
valid data and methods’’ per 40 CFR
51.308(f)(1)(vi)(B), and they request the
EPA to disapprove ADEQ’s URP
glidepath adjustments for two reasons.
First, NPCA et al. state that the EPA
incorrectly suggests that ADEQ’s
adjustments were de minimis and had
no effect on whether the RPGs for each
Class I area are above or below the URP
glidepath. However, ADEQ’s decision to
adjust the default URP glidepaths
significantly affected whether the RPG
for several Class I areas are above or
below the glidepath, such as Chiricahua
Wilderness, Saguaro National Park, and
Superstition Wilderness.
Second, NPCA et al. state that the
EPA’s determination that ADEQ’s
glidepath adjustments used
scientifically valid data and methods is
unsound given that the EPA previously
expressed concerns with these data and
methods. The commenter further states
that the EPA highlighted substantial
problems in its 2019 Modeling
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Technical Support Document (TSD) 187
with available data and methods for
adjusting Class I glidepaths based on
both international and prescribed
wildland fire emissions, including
international emissions data from just a
single year,188 and uncertainty in many
of the calculations and modeling and
ambient data.189
Response G.3. As noted in our
proposal and in our response to
Comment C.5, being on or below the
URP does not relieve a state from
considering the four statutory factors to
determine what level of control is
needed to achieve reasonable
progress.190 The URP is used in later
steps of the reasonable progress analysis
for informational purposes and to
provide a non-enforceable benchmark
against which to assess a Class I area’s
rate of visibility improvement.
Achieving the URP does not mean that
a Class I area is making ‘‘reasonable
progress’’ and does not relieve a state
from using the four statutory factors to
determine what level of control is
needed to achieve such progress.191
We also find that the specific points
raised by NPCA are overstated, and we
therefore disagree that we should
disapprove ADEQ’s glidepath
adjustments. First, the EPA’s proposal
stated, ‘‘[t]he choice of adjustment
option made no difference in whether
the RPG for each area was above or
below its URP glidepath,’’ 192 not that an
adjustment, in general, made no
difference. That is, the glidepath
adjustment results were nearly the same
between the option that adjusted for
international anthropogenic impacts
alone, and the option that adjusted for
international impacts together with
wildland prescribed fire impacts. The
commenter is correct that for several
Class I areas, the adjustment itself does
make a difference in the assessment of
whether projected visibility impacts are
above or below the glidepath. Our
assessment of the URP and RPGs took
that into account, as noted in our
proposal.193 If the adjustment were
187 Memorandum from Richard A. Wayland,
Director, Air Quality Assessment Division, EPA, to
Regional Air Division Directors, Subject:
‘‘Availability of Modeling Data and Associated
Technical Support Document for the EPA’s
Updated 2028 Visibility Air Quality Modeling,’’
September 19, 2019, available at https://
www.epa.gov/visibility/technical-supportdocument-epas-updated-2028-regional-hazemodeling.
188 2019 Modeling TSD, p. 37.
189 2019 Modeling TSD, p. 67.
190 89 FR 47398, 47402, n. 52.
191 See, e.g., 82 FR 3078, 3093 and 89 FR 47398,
47402, n. 52.
192 89 FR 47398, 47411 (emphasis added).
193 89 FR 47398, 47432–47433.
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rejected altogether, that would
strengthen the case for the need for the
State to make a ‘‘robust demonstration’’
that there are no reasonable additional
emissions reduction measures, although
in this case that need is already
established because Sycamore Canyon
Wilderness impacts are above its
glidepath with or without
adjustment.194
Second, the EPA disagrees that the
glidepath adjustments were not based
on scientifically valid data and
methods. The 2019 Modeling TSD
acknowledges various limitations and
uncertainties in various model inputs
and calculation approaches, which is
always the case in modeling. That
acknowledgement was not intended as
an assertion by the EPA that its own
data and methods were scientifically
invalid. Similarly, it was not intended
that a glidepath adjustment made using
the same or similar methods would not
be based on scientifically valid data and
methods. Rather, the data and methods
used were the best available to the EPA
at the time of the modeling in that TSD,
and presented as a reasonable and valid
approach for glidepath adjustment that
states could consider in developing
their SIPs, without precluding the use of
better data and methods that a state
might develop. The EPA’s specific
statement about ‘‘uncertainty in many of
the calculations and modeling and
ambient data’’ was in the context of
alternative approaches to adjusting the
glidepath, for which the 2019 Modeling
TSD provided five,195 including the
default. Those approaches differed in
whether international impacts and
prescribed fire should be combined with
the baseline model run on an absolute
or relative basis (i.e., simply added in or
applied as a percent difference), and
whether natural conditions should be
estimated from monitored data or from
modeling. There is not one clearly best
approach that would be most
appropriate for all Class I areas in the
country, but the EPA chose one as the
default and provided a range of
adjustment results. For Arizona Class I
areas, the glidepath adjustment in the
default approach was nearly the same as
the maximum among the approaches
examined, except for the Grand Canyon
and Sycamore Canyon Wilderness,
where it gave closer to the minimum
adjustment among the approaches
considered.196 As noted in the EPA’s
proposal, the WRAP results used by
ADEQ were fairly close to default
194 2022 Arizona Regional Haze Plan, p. D–24 and
Figure D–39.
195 2019 modeling TSD, p. 55.
196 2019 modeling TSD, p. 56, Table 5–2.
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approach values estimated by the EPA
and were determined to be based on
scientifically valid data and methods.197
The EPA does not find any reason, and
the commenters do not provide any
additional reasons to determine
otherwise.
Comment G.4. NPCA et al. indicate
that the EPA must disapprove
additional aspects of ADEQ’s source
selection process, noting that ADEQ’s
Q/d threshold of 10 is arbitrarily high,
ADEQ should not have eliminated the
totality of ‘‘effectively-controlled’’
process emissions from its Q/d analysis,
and ADEQ’s ‘‘de minimis point source
process determination’’ is arbitrary and
capricious.
Response G.4. As explained in our
proposal and the 2021 Clarifications
Memo, the RHR does not require states
to consider controls for all sources, all
source categories, or any or all sources
in a particular source category.198
Rather, the states have discretion to
choose any source selection
methodology or threshold that is
reasonable, but the choices they make
must be explained and should be
designed to result in a set of sources
which capture a meaningful portion of
the state’s total contribution to visibility
impairment. To this end, 40 CFR
51.308(f)(2)(i) requires that a state’s SIP
submission must include ‘‘a description
of the criteria it used to determine
which sources or groups of sources it
evaluated.’’ The technical basis for
source selection, which may include
methods for quantifying potential
visibility impacts such as emissions
divided by distance metrics, trajectory
analyses, residence time analyses, and/
or photochemical modeling, must also
be appropriately documented, as
required by 40 CFR 51.308(f)(2)(iii).
Overall, in this particular instance,
the EPA finds that that many aspects of
ADEQ’s source selection process, such
as its focus on sulfate, nitrate, and
coarse mass and its use of a Q/d value
of 10 for point sources, were reasonable
and adequately explained and
documented. However, we also find that
ADEQ did not provide an adequate
justification for screening out certain
sources and units from conducting a
four-factor analysis on the basis that
they are ‘‘effectively controlled’’ as part
of its source selection process.199 As the
197 89
FR 47398, 47411.
FR 47398, 47403; 2021 Clarifications
Memo, Sections 2 and 2.1.
199 See 40 CFR 51.308(f)(2)(i) (‘‘. . . The State
must include in its implementation plan a
description of the criteria is used to determine
which sources or groups of sources it evaluated and
how the four factors were taken into consideration
198 89
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EPA has previously stated, ‘‘[s]ource
selection is a critical step in states’
analytical processes. All subsequent
determinations of what constitutes
reasonable progress flow from states’
initial decisions regarding the universe
of pollutants and sources they will
consider for the second planning
period.’’ 200 Therefore, Arizona’s source
selection methodology, including
unjustified effectively controlled
determinations, supports the EPA’s
determination that Arizona’s long-term
strategy did not include all measures
necessary to make reasonable progress.
Therefore, EPA’s disapproval of 40 CFR
51.308(f)(2), as a whole, is reasonable.
Comment G.5. NPCA et al. state that
ADEQ’s average cost-effectiveness
threshold is too low, and requests the
EPA to further clarify that ADEQ’s
$6,500 per ton cost threshold is too low
and unreasonably excludes costeffective control measures.
Response G.5. While the EPA is not
disapproving ADEQ’s cost threshold, we
nonetheless find that the State did not
apply this threshold in a consistent and
reasonable manner, as described in our
proposal 201 and Response D.4 of this
document.
Comment G.6. NPCA et al. comment
that the EPA must promptly issue a
Regional Haze FIP for Arizona. The
commenter recommends that to provide
sufficient time for sources to implement
control measures before the second
implementation period ends in 2028,
the EPA should issue a proposed FIP in
2024 and finalize the FIP by the end of
2025.
Response G.6. Disapproving a SIP
submission establishes a two-year
deadline for the EPA to promulgate a
FIP to address the relevant requirements
under CAA section 110(c), unless the
EPA approves a subsequent SIP
submission that meets these
requirements. The EPA is not proposing
a FIP for the disapproved requirements
of the 2022 Arizona Regional Haze Plan
at this time.
III. Final Action
Under CAA section 110(k)(3), and
based on the evaluation and rationale
presented in the proposed rule and this
final rule, the EPA is partially approving
and partially disapproving the 2022
Arizona Regional Haze Plan.
Specifically, the EPA is approving the
elements of the 2022 Arizona Regional
Haze Plan related to requirements
contained in 40 CFR 51.308(f)(1), (f)(4)–
in selecting the measures for inclusion in its longterm strategy’’).
200 2021 Clarifications Memo, p. 3.
201 89 FR 47398, 47429.
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(6), and (g)(1)–(5). The EPA is
disapproving the elements of the 2022
Arizona Regional Haze Plan related to
requirements contained in 40 CFR
51.308(f)(2), (f)(3), and (i)(2)–(4).
Further, the EPA is disapproving the
interstate transport requirements of
CAA section 110(a)(2)(D)(i)(II) prong 4
(visibility) for the 2018 Ozone I–SIP
submittal and 2015 PM2.5 I–SIP
submittal.
Under section 179(a) of the CAA, final
disapproval of a submittal that
addresses a requirement of part D, title
I of the CAA or is required in response
to a finding of substantial inadequacy as
described in CAA section 110(k)(5)
starts a sanctions clock. Arizona’s 2022
Regional Haze Plan, 2018 Ozone I–SIP
submittal, and 2015 PM2.5 I–SIP
submittal were not submitted to meet
any of these requirements. Therefore,
the disapprovals noted in section III.B
will not trigger any offset or highway
sanctions clocks. Disapproving a SIP
submission also establishes a two-year
deadline for the EPA to promulgate a
FIP to address the relevant requirements
under CAA section 110(c), unless the
EPA approves a subsequent SIP
submission that meets these
requirements. We anticipate that any
SIP or FIP that remedies the
disapprovals with respect to Regional
Haze requirements, would also, in
conjunction with the existing Arizona
Regional Haze FIP, remedy the
disapproval for the interstate transport
visibility requirement of CAA section
110(a)(2)(D)(i)(II) for the 2018 Ozone I–
SIP submittal and 2015 PM2.5 I–SIP
submittal.
IV. Statutory and Executive Order
Reviews
Under the CAA, the Administrator is
required to approve a SIP submission
that complies with the provisions of the
Act and applicable federal regulations.
42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, the
EPA’s role is to review state choices,
and approve those choices if they meet
the minimum criteria of the Act.
Accordingly, this final action partially
approves and partially disapproves state
law as meeting federal requirements and
does not impose additional
requirements beyond those imposed by
state law.
Additional information about these
statutes and Executive orders can be
found at https://www.epa.gov/lawsregulations/laws-and-executive-orders.
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A. Executive Order 12866: Regulatory
Planning and Review and Executive
Order 13563: Improving Regulation and
Regulatory Review
This action is not a significant
regulatory action and was therefore not
submitted to the Office of Management
and Budget (OMB) for review.
B. Paperwork Reduction Act (PRA)
This action does not impose an
information collection burden under the
PRA because this action does not
impose additional requirements beyond
those imposed by state law.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have
a significant economic impact on a
substantial number of small entities
under the RFA. This action will not
impose any requirements on small
entities beyond those imposed by state
law.
D. Unfunded Mandates Reform Act
(UMRA)
This action does not contain any
unfunded mandate as described in
UMRA, 2 U.S.C. 1531–1538, and does
not significantly or uniquely affect small
governments. This action does not
impose additional requirements beyond
those imposed by state law.
Accordingly, no additional costs to
State, local, or Tribal governments, or to
the private sector, will result from this
action.
E. Executive Order 13132: Federalism
This action does not have federalism
implications. It will not have substantial
direct effects on the states, on the
relationship between the national
government and the states, or on the
distribution of power and
responsibilities among the various
levels of government.
F. Executive Order 13175: Coordination
With Indian Tribal Governments
This action does not have Tribal
implications, as specified in Executive
Order 13175, because the SIP is not
approved to apply on any Indian
reservation land or in any other area
where the EPA or an Indian Tribe has
demonstrated that a Tribe has
jurisdiction, and will not impose
substantial direct costs on Tribal
governments or preempt Tribal law.
Thus, Executive Order 13175 does not
apply to this action.
G. Executive Order 13045: Protection of
Children From Environmental Health
Risks and Safety Risks
The EPA interprets Executive Order
13045 as applying only to those
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102772 Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations
regulatory actions that concern
environmental health or safety risks that
the EPA has reason to believe may
disproportionately affect children, per
the definition of ‘‘covered regulatory
action’’ in section 2–202 of the
Executive Order. Therefore, this action
is not subject to Executive Order 13045
because it merely partially approves and
partially disapproves state law as
meeting federal requirements.
Furthermore, the EPA’s Policy on
Children’s Health does not apply to this
action.
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not subject to Executive
Order 13211, because it is not a
significant regulatory action under
Executive Order 12866.
I. National Technology Transfer and
Advancement Act (NTTAA)
Section 12(d) of the NTTAA directs
the EPA to use voluntary consensus
standards in its regulatory activities
unless to do so would be inconsistent
with applicable law or otherwise
impractical. The EPA believes that this
action is not subject to the requirements
of section 12(d) of the NTTAA because
application of those requirements would
be inconsistent with the CAA.
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
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. Executive Order
14096 (Revitalizing Our Nation’s
Commitment to Environmental Justice
for All, 88 FR 25251, April 26, 2023)
builds on and supplements E.O. 12898
and defines EJ as, among other things,
‘‘the just treatment and meaningful
involvement of all people, regardless of
income, race, color, national origin, or
Tribal affiliation, or disability in agency
decision-making and other Federal
activities that affect human health and
the environment.’’
The State did not evaluate EJ
considerations as part of its SIP
submittal; the CAA and applicable
implementing regulations neither
prohibit nor require such an evaluation.
EPA did not perform an EJ analysis and
did not consider EJ in this action. Due
to the nature of the action being taken
here, this action is expected to have a
neutral to positive impact on the air
quality of the affected area.
Consideration of EJ is not required as
part of this action, and there is no
information in the record inconsistent
with the stated goal of E.O. 12898/14096
of achieving EJ for communities with EJ
concerns.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and
the EPA will submit a rule report to
each House of the Congress and to the
Comptroller General of the United
States. This action is not a ‘‘major rule’’
as defined by 5 U.S.C. 804(2).
L. Petitions for Judicial Review
Under section 307(b)(1) of the CAA,
petitions for judicial review of this
action must be filed in the United States
Court of Appeals for the appropriate
circuit by February 18, 2025. Filing a
petition for reconsideration by the
Administrator of this final rule does not
affect the finality of this rule 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, Intergovernmental relations,
Nitrogen oxides, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur Oxides, Volatile
organic compounds.
Dated: December 10, 2024.
Martha Guzman Aceves,
Regional Administrator, Region IX.
For the reasons stated in the
preamble, the EPA amends chapter I,
title 40 of the Code of Federal
Regulations 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 D—Arizona
2. In § 52.120(e), amend Table 1 by
adding an entry for ‘‘State
Implementation Plan Revision: Regional
Haze Program (2018–2028)’’ before the
entry for ‘‘Arizona State Implementation
Plan Revision under Clean Air Act
Section 110(a)(1) and (2);
Implementation of the 2008 Lead
National Ambient Air Quality
Standards, excluding the appendices.’’
The addition reads as follows:
■
§ 52.120
*
Identification of plan.
*
*
(e) * * *
*
*
TABLE 1—EPA-APPROVED NON-REGULATORY AND QUASI-REGULATORY MEASURES
[Excluding certain resolutions and statutes, which are listed in tables 2 and 3, respectively] 1
Applicable geographic
or nonattainment area
or title/subject
Name of SIP provision
State submittal date
EPA approval date
Explanation
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The State of Arizona Air Pollution Control Implementation Plan
Clean Air Act Section 110(a)(2) State Implementation Plan Elements (Excluding Part D Elements and Plans)
*
*
*
State Implementation Plan Revision: Regional Haze Program (2018–2028), excluding Chapters 2, 6.1, 6.2, 6.3,
7, 8, 9, and 10 and Appendices B, C, D, E, F, G, H, I,
J, and L.
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*
State-wide ...................
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*
August 15, 2022 ....
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*
January 17, 2025.
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Federal Register / Vol. 89, No. 243 / Wednesday, December 18, 2024 / Rules and Regulations 102773
TABLE 1—EPA-APPROVED NON-REGULATORY AND QUASI-REGULATORY MEASURES—Continued
[Excluding certain resolutions and statutes, which are listed in tables 2 and 3, respectively] 1
Applicable geographic
or nonattainment area
or title/subject
Name of SIP provision
*
*
*
*
State submittal date
EPA approval date
*
*
Explanation
*
1 Table
1 is divided into three parts: Clean Air Act Section 110(a)(2) State Implementation Plan Elements (excluding Part D Elements and
Plans), Part D Elements and Plans (other than for the Metropolitan Phoenix or Tucson Areas), and Part D Elements and Plans for the Metropolitan Phoenix and Tucson Areas.
*
*
*
*
*
3. Section 52.145 is amended by
adding paragraph (o) to read as follows:
■
§ 52.145
Visibility protection.
*
*
*
*
*
(o) Disapproval. On August 15, 2022,
the Arizona Department of
Environmental Quality submitted the
‘‘State Implementation Plan Revision:
Regional Haze Program (2018–2028).’’
(1) The following portions of the
‘‘State Implementation Plan Revision:
Regional Haze Program (2018–2028)’’
are disapproved because they do not
meet the applicable requirements of
Clean Air Act sections 169A and 169B
and the Regional Haze Rule in 40 CFR
51.301 through 51.308.
(i) Chapters 2, 6.1, 6.2, 6.3, 7, 8, 9, and
10;
(ii) Appendices B, C, D, E, F, G, H, I,
J, and L.
■ 4. Section 52.147 is amended by
adding paragraph (f) to read as follows:
§ 52.147
Interstate transport.
*
*
*
*
*
(f) Disapproval. The SIPs submitted
on December 11, 2015 and September
24, 2018 do not meet the requirements
of Clean Air Act section
110(a)(2)(D)(i)(II) (interfere with
measures in any other state to protect
visibility, only) for the 2012 PM2.5
NAAQS and the 2015 ozone NAAQS,
respectively.
[FR Doc. 2024–29508 Filed 12–17–24; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 68, 372, 703, 720, 721,
723, 725, and 761
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[EPA–HQ–OPPT–2022–0902; FRL–7906–02–
OCSPP]
RIN 2070–AK65
Updates to New Chemicals
Regulations Under the Toxic
Substances Control Act (TSCA)
Environmental Protection
Agency (EPA).
AGENCY:
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ACTION:
Final rule.
The Environmental Protection
Agency (EPA or the Agency) is
amending the new chemicals procedural
regulations under the Toxic Substances
Control Act (TSCA). These amendments
align the regulatory text with the
amendments to TSCA’s new chemicals
review provisions contained in the
Frank R. Lautenberg Chemical Safety for
the 21st Century Act, enacted on June
22, 2016, will improve the efficiency of
EPA’s review processes, and update the
regulations based on existing policies
and experience implementing the New
Chemicals Program. This final rule
includes amendments that will increase
the quality of information initially
submitted in new chemicals notices and
improve the Agency’s processes for
timely, effective completion of
individual risk assessments and the new
chemicals review process overall. EPA
is also finalizing several amendments to
the regulations for low volume
exemptions (LVEs) and low release and
exposure exemptions (LoREXs), which
will require EPA approval of an
exemption notice prior to
commencement of manufacture, make
per- and polyfluoroalkyl substances
(PFAS) categorically ineligible for these
exemptions, and provide that certain
persistent, bioaccumulative, toxic (PBT)
chemical substances are ineligible for
these exemptions.
DATES: This final rule is effective
January 17, 2025.
ADDRESSES: The docket for this action,
identified by docket identification (ID)
number EPA–HQ–OPPT–2022–0902, is
available online at https://
www.regulations.gov. Additional
instructions for visiting the docket,
along with more information about
dockets generally, is available at https://
www.epa.gov/dockets.
FOR FURTHER INFORMATION CONTACT: For
technical information contact: Tyler
Lloyd, New Chemicals Division
(7405M), Office of Pollution Prevention
and Toxics, Environmental Protection
Agency, 1200 Pennsylvania Ave. NW,
Washington, DC 20460–0001; telephone
SUMMARY:
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number: (202) 564–4016; e-mail address:
lloyd.tyler@epa.gov.
For general information contact: The
TSCA-Hotline, ABVI-Goodwill, 422
South Clinton Ave., Rochester, NY
14620; telephone number: (202) 554–
1404; e-mail address: TSCA-Hotline@
epa.gov.
SUPPLEMENTARY INFORMATION:
I. Executive Summary
A. Does this action apply to me?
You may be potentially affected by
this action if you intend to manufacture
a new chemical substance, or
manufacture or process a chemical
substance for a significant new use. The
following list of North American
Industrial Classification System
(NAICS) codes is not intended to be
exhaustive, but rather provides a guide
to help readers determine whether this
document applies to them. Potentially
affected entities may include:
• Chemical Manufacturers (NAICS
code 325).
• Petroleum and Coal Products
(NAICS code 324).
• Merchant Wholesalers, Nondurable
Goods (NAICS code 424).
This list details the types of entities
that EPA is aware could potentially be
regulated by this action. Other types of
entities not listed could also be
regulated. To determine whether your
entity is regulated by this action, you
should carefully examine the
applicability criteria found in 40 CFR
720.22, 721.5, 723.50, and 725.1. If you
have questions regarding the
applicability of this action, please
consult the technical person listed
under FOR FURTHER INFORMATION
CONTACT.
B. What is the Agency’s authority for
taking this action?
EPA is promulgating this rule
pursuant to its authority in TSCA
section 5 (15 U.S.C. 2604). Section
5(a)(1) of the Toxic Substances Control
Act (TSCA), 15 U.S.C. 2604(a)(1), as
amended by the Frank R. Lautenberg
Chemical Safety for the 21st Century
Act of 2016 (Pub. L. 114–182) (herein
referred to as the ‘‘2016 Lautenberg
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Agencies
[Federal Register Volume 89, Number 243 (Wednesday, December 18, 2024)]
[Rules and Regulations]
[Pages 102744-102773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-29508]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R09-OAR-2024-0005; FRL-11919-02-R9]
Partial Approval and Disapproval of Air Quality Implementation
Plans; Arizona; Regional Haze State Implementation Plan for the Second
Implementation Period and Prong 4 (Visibility) for the 2015 Ozone and
2012 Particulate Matter Standards
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is partially
approving and partially disapproving the regional haze state
implementation plan (SIP) revision submitted by Arizona on August 15,
2022 (``2022 Arizona Regional Haze Plan''), under the Clean Air Act
(CAA) and the EPA's Regional Haze Rule (RHR) for the program's second
implementation period. Arizona's SIP submission was developed to
address the requirement that states must periodically revise their
long-term strategies for making reasonable progress towards the
national goal of preventing any future, and remedying any existing,
anthropogenic impairment of visibility, including regional haze, in
mandatory Class I Federal areas. The SIP submission also addresses
other applicable requirements for the second implementation period of
the regional haze program. Within this action, the EPA is also
disapproving the visibility transport prong of Arizona's infrastructure
SIP submittals for the 2012 annual fine particulate matter
(PM2.5) and 2015 ozone National Ambient Air Quality
Standards (NAAQS). The EPA is taking this action pursuant to CAA
sections 110 and 169A.
DATES: This rule is effective on January 17, 2025.
ADDRESSES: The EPA has established a docket for this action under
Docket ID No. EPA-R09-OAR-2024-0005. All documents in the docket are
listed on the https://www.regulations.gov website. Although listed in
the index, some information is not publicly
[[Page 102745]]
available, e.g., 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 through https://www.regulations.gov, or please contact the person identified in the FOR
FURTHER INFORMATION CONTACT section for additional availability
information. If you need assistance in a language other than English or
if you are a person with a disability who needs a reasonable
accommodation at no cost to you, please contact the person identified
in the FOR FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT: Michael Dorantes, Geographic
Strategies & Modeling Section (AIR-2-2), Planning & Analysis Branch,
Air and Radiation Division, EPA Region IX, 75 Hawthorne Street, San
Francisco, CA 94105; phone: (415) 972-3934; email:
[email protected].
SUPPLEMENTARY INFORMATION: Throughout this document, ``we,'' ``us'' and
``our'' refer to the EPA.
Table of Contents
I. Background
A. Regional Haze Plan for the Second Implementation Period
B. Prong 4 (Visibility) of the 2012 PM2.5 NAAQS and
2015 Ozone NAAQS Infrastructure SIPs
II. Public Comments and EPA Responses
A. Comment Letter From Tri-State
B. Comment Letter From ADEQ
C. Comment Letter From the Chamber and AMC
D. Comment Letter From TEP
E. Comment Letter From SRP
F. Community Sign-On Letter
G. Comment Letter From NPCA et al.
III. Final Action
IV. Statutory and Executive Order Reviews
I. Background
A. Regional Haze Plan for the Second Implementation Period
On August 15, 2022,\1\ the Arizona Department of Environmental
Quality (ADEQ) submitted the 2022 Arizona Regional Haze Plan. ADEQ
supplemented its SIP revision on August 25, 2023, with nonpoint source
rules (``2023 Arizona Regional Haze Rules Supplement'').\2\ ADEQ made
these SIP submissions to address requirements of the CAA's regional
haze program pursuant to CAA sections 169A and 169B and 40 CFR 51.308.
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\1\ Letter dated August 15, 2022, from Daniel Czecholinski,
Director, Arizona Department of Environmental Quality Air Quality
Division, to Martha Guzman, Regional Administrator, EPA Region IX
(submitted electronically August 15, 2022). On August 16, 2022, the
EPA determined that the SIP submittal met the completeness criteria
outlined in 40 CFR part 51, Appendix V. Letter dated August 16,
2022, from Elizabeth Adams, Director, Air and Radiation Division,
EPA Region IX, to Daniel Czecholinski, Director, Arizona Department
of Environmental Quality Air Quality Division.
\2\ Letter dated August 21, 2023, from Daniel Czecholinski,
Director, Arizona Department of Environmental Quality Air Quality
Division, to Martha Guzman, Regional Administrator, EPA Region IX
(submitted electronically August 25, 2023).
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On May 31, 2024, the EPA published a notice of proposed rulemaking
proposing partial approval and partial disapproval of the 2022 Arizona
Regional Haze Plan SIP submission as partially satisfying the regional
haze requirements for the second implementation period contained in the
CAA and 40 CFR 51.308.\3\ We did not propose to act on the 2023 Arizona
Regional Haze Rules Supplement.
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\3\ 89 FR 47398.
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The EPA is now approving the elements of the 2022 Arizona Regional
Haze Plan related to requirements contained in 40 CFR 51.308(f)(1),
(f)(4)-(6), and (g)(1)-(5). The EPA is disapproving the elements of the
2022 Arizona Regional Haze Plan related to requirements contained in 40
CFR 51.308(f)(2), (f)(3), and (i)(2)-(4). Our proposed action and our
responses to comments in section II of this document contain more
information on the basis for this rulemaking and on our evaluation of
the submittal.
B. Prong 4 (Visibility) of the 2012 PM2.5 NAAQS and 2015 Ozone NAAQS
Infrastructure SIPs
Arizona submitted its infrastructure SIP submission for the 2012
PM2.5 NAAQS on December 11, 2015 (``2015 PM2.5 I-
SIP submittal'').\4\ Arizona also submitted its infrastructure SIP
submission for the 2015 ozone NAAQS on September 24, 2018 (``2018 Ozone
I-SIP submittal'').\5\
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\4\ Letter dated December 11, 2015, from Eric Massey, Director,
Air Quality Division, ADEQ, to Jared Blumenfeld, Regional
Administrator, EPA Region IX.
\5\ Letter dated September 24, 2018, from Timothy S. Franquist,
Director, Air Quality Division, ADEQ, to Michael Stoker, Regional
Administrator, EPA Region IX (submitted electronically September 24,
2018).
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Our May 31, 2024 proposed rulemaking action proposed to disapprove
the prong 4 portions of Arizona's 2018 Ozone I-SIP submittal and 2015
PM2.5 I-SIP submittal. The EPA is now disapproving the Prong
4 elements of Arizona's 2018 Ozone I-SIP submittal and 2015
PM2.5 I-SIP submittal. Our proposed action contains more
information on the basis for this rulemaking and on our evaluation of
the submittals.
II. Public Comments and EPA Responses
The EPA's May 31, 2024 proposed rulemaking action provided a 30-day
public comment period that would have ended on July 1, 2024. We
received four comments requesting an extension of the comment period.
On June 26, 2024,\6\ the EPA extended the comment period for the
proposed rulemaking action by 14 days in response to requests from
commenters. This action extended the close of the comment period to
July 15, 2024.
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\6\ 89 FR 53372.
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The EPA received an additional ten unique comments, including one
anonymous comment,\7\ two comments from private individuals,\8\ and
comment letters from Tri-State Generation and Transmission Association,
Inc. (``Tri-State''),\9\ ADEQ,\10\ the Arizona Chamber of Commerce and
Industry and the Arizona Manufacturers Council (``the Chamber and
AMC''),\11\ Tuscon Electric Power (TEP),\12\ the Salt River
Agricultural Improvement and Power District (SRP),\13\ 12 community
organizations (``Community Sign-on Letter''),\14\ and Earthjustice on
behalf of the National Parks Conservation Association, Sierra Club, and
the Coalition to Protect America's National Parks (``NPCA et
al.'').\15\ The anonymous comment and the comments from the private
individuals were unrelated to our proposed rulemaking. These three
comments do not require a response. We respond to the issues raised in
the seven remaining comment
[[Page 102746]]
letters received on our proposed rulemaking in this action.
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\7\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0014.
\8\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0015 and https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0019.
\9\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0016.
\10\ ADEQ submitted its comment letter twice. The letter is
available at both https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0017 and https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0018.
\11\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0020.
\12\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0021.
\13\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0023.
\14\ Available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0022.
\15\ The comment letter and all Exhibits except for Exhibits 24
and 60 are available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0024. Exhibits 24 and 60, including an emailed copy of
the NPCA et al.'s comment letter, are available at https://www.regulations.gov/comment/EPA-R09-OAR-2024-0005-0025.
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A. Comment Letter From Tri-State
Sections I (``Introduction''), II (``Background Information on Tri-
State''), and III (``Tri-State Supports the Provisions of the Arizona
Department of Environmental Quality's State Implementation Plan
Submittal for which EPA has Proposed Approval'') of Tri-State's comment
letter either provide background information or are supportive of the
EPA's proposal and therefore do not require a response in our final
action. We respond to sections IV (``The Partial Disapproval is Overly
Vague and Should Be Reproposed with a Fulsome and Specific Explanation
of What EPA Finds Inconsistent with the Clean Air Act and the
Implementing Regulations''), V (``Additional Emission Reductions Are
Inappropriate for Springerville Unit 3''), and VI (``EPA's Reliance on
the July 8, 2021, Clarifications Memorandum Is Inappropriate Because It
Was Issued Only Days Prior to the Regional Haze State Implementation
Plans Being Due'') of Tri-State's comment letter below.
Comment A.1. Tri-State comments that the proposed rule,
specifically the partial disapproval, is overly vague and does not lend
itself to the general public being able to adequately understand what
the EPA finds objectionable regarding the SIP submission. Tri-State
asserts that the EPA made broad statements about divergences from the
Control Cost Manual and inadequacies in four-factor analyses and that
``it [is] impossible to understand with certainty the sources to which
these overly broad statements apply.'' The commenter also notes that
the proposed rulemaking action only gives limited examples of what the
EPA is referring to and asserts that the EPA needs to clearly provide
where it has issues with the SIP revision as it was submitted not just
examples of what it is concerned about. Specifically, Tri-State states
that the proposed rulemaking action makes general comments about ADEQ
conducting analyses for well-controlled sources to further reduce
emissions but makes no reference to which sources that the EPA finds to
be lacking in this area. Tri-State also comments that the vagueness of
the proposal is not consistent with the cooperative nature of the CAA
in the EPA working with states.
Response A.1. We do not agree that the proposal was overly vague or
that the basis for our proposed partial disapproval was unclear. The
proposal provided a detailed summary of the 2022 Arizona Regional Haze
Plan and the EPA's evaluation of the Plan with regard to each of the
applicable requirements of the CAA and the RHR. With respect to the
EPA's partial disapproval specifically, the proposal laid out multiple
reasons for the EPA's determination that the long-term strategy did not
fully meet the requirements of 40 CFR 51.308(f)(2), related to source
selection, four-factor analyses (specifically, controlled emissions
rates and deviations from the Control Cost Manual), and control
determinations (specifically, the application of cost thresholds, the
use of visibility as a factor to avoid controls, and the mass-based
emissions caps at Springerville Generating Station (SGS)).\16\ In each
instance, we provided at least one example of a unit to which this
reason applied.\17\ We also explained why the disapproval of the long-
term strategy also necessitated disapproval of the RPG and FLM
consultation elements.\18\
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\16\ 89 FR 47398, 47428-47432.
\17\ Id.
\18\ Id. at 47432-47433 and 47435-47436.
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We disagree with the commenter's suggestion that it was necessary
for the EPA to specify the extent to which each of the flaws identified
by the EPA applied to each unit considered by ADEQ. The EPA's role in
reviewing SIPs is to determine whether they meet all of the applicable
CAA requirements.\19\ In evaluating whether a SIP revision (or a
portion thereof) meets all of the applicable requirements, the EPA is
not required to separately evaluate and discuss each of the thousands
of pieces of information, analyses and determinations comprising the
SIP submission. Rather, the EPA may focus on those specific elements of
the SIP revision that form the basis for our determination that certain
applicable requirements are met and certain applicable requirements are
not met. Therefore, in this instance, it was reasonable for the EPA to
summarize our evaluation and cite to examples of where the State's
documentation, analyses, and determinations did not meet CAA
requirements, rather than separately evaluating and discussing every
such instance throughout the SIP revision.
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\19\ See CAA section 110(k)(3) (``the Administrator shall
approve [a SIP] submittal as a whole if it meets all of the
applicable requirements of [the CAA]. If a portion of the plan
revision meets all the applicable requirements of [the CAA], the
Administrator may approve the plan revision in part and disapprove
the plan revision in part'').
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For example, regarding source selection, our proposal stated that:
ADEQ did not provide an adequate justification for screening out
certain sources and units from conducting a four-factor analysis on
the basis that they are `effectively controlled' as part of its
source selection process. Specifically, in some cases, ADEQ did not
identify the controls for each pollutant at each unit or process,
the associated limits, or where the controls/limits currently exist
in the Arizona SIP. In other cases, ADEQ listed the controls, but
did not clearly explain why it is reasonable to assume, without
conducting a four-factor analysis, that no additional controls would
be reasonable.
We then provided examples of specific sources to which these
concerns applied. In addition, table 3 of the proposal listed all of
the units that ADEQ screened out as ``effectively controlled'' and
includes the entirety of ADEQ's rationale for each unit.\20\ This table
clearly shows that for many of the units, ADEQ did not list controls
for one or more of the three relevant pollutants (NOX,
SO2, and PM). Moreover, even for those units where ADEQ did
list this information, it did not explain why it is reasonable to
assume, without conducting a four-factor analysis, that no additional
controls would be reasonable. Furthermore, our proposed rulemaking
action clearly stated that ADEQ did not adequately explain whether any
of the existing controls for facilities evaluated within the SIP
submittal were necessary for reasonable progress and therefore a part
of the state's long-term strategy. Therefore, it was not necessary to
specifically identify each source that was deficient in this respect
because the deficiency applied to every source determined to be
effectively controlled.
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\20\ Consistent with their labeling in the Plan, Appendix C.1,
Table 147, these rationales appear under the heading of
``Comments.''
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Finally, regarding the cooperative nature of the CAA, we note that
the EPA worked extensively with ADEQ during SIP development. EPA and
ADEQ staff met on a monthly basis beginning in 2019 and continuing
through 2021 to discuss the development of the Plan. The EPA also
provided informal written feedback on various elements of the Plan
between 2019 and 2022. In these communications, the EPA identified many
of the flaws that are the basis for the partial disapproval, so ADEQ
was aware of the EPA's concerns prior to the EPA's proposal.
In conclusion, based on the findings discussed in our proposal and
elsewhere in this document, we find that the long-term strategy in the
2022 Arizona Regional Haze Plan does not meet the requirements of
51.308(f)(2) and we are disapproving the Plan with respect to this
requirement. Therefore, pursuant to CAA section 110(c), the EPA will be
required to develop a new
[[Page 102747]]
long-term strategy as part of a FIP, unless the EPA approves a
subsequent SIP submission that fully meets these requirements. That
long-term strategy would necessarily include updated source selection,
four factor analyses, and control determinations that address the
deficiencies we identified in the Plan. We are available to work with
ADEQ following this final action to develop a SIP revision, including
these elements.
Comment A.2. Tri-State asserted that additional emissions
reductions are ``inappropriate'' for Springerville Generating Station
(SGS) Unit 3. Tri-State made a few arguments in support of this
contention.
First, Tri-State noted that ADEQ evaluated the currently installed
NOX emissions controls against technically feasible
emissions controls and concluded that the current NOX
emissions controls constitutes best available control technology (BACT)
for coal-fired electric generating units (EGUs). For SO2,
Tri-State indicated that ADEQ's analysis for SGS Unit 3 clearly
demonstrates that Unit 3's emissions ranged from 0.069 to 0.090 lb/
MMBtu on an annual basis and has continuously complied with the Mercury
and Air Toxics Standard (MATS) SO2 emissions standard of
0.20 lb/MMBtu, and therefore does not warrant further emissions
controls. Tri-State also noted language in the EPA's ``Guidance on
Regional Haze State Implementation Plans for the Second Implementation
Period'' (``2019 Guidance'') \21\ that describes scenarios in which the
EPA believes it may be reasonable for a state not to select a
particular source for further analysis for EGUs that have add-on flue
gas desulfurization (FGD) and that meets the applicable alternative
SO2 emissions limit of the MATS rule for power plants.
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\21\ Guidance on Regional Haze State Implementation Plans for
the Second Implementation Period. https://www.epa.gov/visibility/guidance-regional-haze-state-implementation-plans-second-implementation-period. The EPA Office of Air Quality Planning and
Standards, Research Triangle Park (August 20, 2019).
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Second, Tri-State noted the visibility improvement at the Mount
Baldy Wilderness Area in the first planning period, and that Arizona
will have four additional 10-year planning periods to achieve the 1.3
deciview improvement needed to achieve natural conditions.
Finally, Tri-State stated that its intent is to retire SGS Unit 3
by September 15, 2031, and requested that the EPA include in the final
rule a provision to allow sources to work with their state regulatory
agencies to adopt an enforceable commitment to retire a unit, such as
through a permit condition, to allow the source to forego any further
emissions control or reduction requirements if a unit is retiring
within ten years of the Regional Haze SIP approval.
Response A.2. We partially agree with this comment. First, with
respect to NOX emissions at SGS Unit 3, ADEQ noted in the
Plan ``[t]he current controls ([low-NOX burners (LNB),
overfire air (OFA) with selective catalytic reduction (SCR)] represent
the most effective NOX control technologies for coal fired
EGUs and are estimated to achieve 85-95% removal efficiency.'' \22\ We
agree that the existing LNB, OFA and SCR constitute effective controls
for NOX at SGS Unit 3. As described in our proposal and in
response B.1 of this document, existing effective controls are
generally necessary to make reasonable progress and must be included in
the SIP, unless the state provides a weight-of-evidence demonstration
to justify that the existing effective controls are not necessary to
make reasonable progress. Because the Arizona SIP does not include a
NOX emissions limit corresponding to these controls for SGS
Unit 3, the State should have provided such demonstration.
Specifically, the State should have considered whether SGS Unit 3 is
subject to an enforceable NOX emissions limit that ensures
its NOX emissions rate will not increase. Without proper
justification that emissions of visibility impairing pollutants will
not increase, it is unclear how reasonable progress is being made
within the State's long-term strategy for the second planning
period.\23\
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\22\ 2022 Arizona Regional Haze Plan, p. 219.
\23\ See CAA 169A(a)(1) ``Congress hereby declares as a national
goal the prevention of any future, and the remedying of any
existing, impairment of visibility in [Class I areas.]'' (emphasis
added).
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Similarly, with respect to SO2 emissions at SGS Unit 3,
we agree that, as described in the 2019 Guidance, an add-on FGD meeting
the appliable alternative SO2 emissions standard under MATS
may constitute an effective control for SO2. However, as
noted in the previous paragraph, existing effective controls are
generally necessary to make reasonable progress and must be included in
the SIP, unless the state provides a weight-of-evidence demonstration
to justify that the existing effective controls are not necessary to
make reasonable progress. Because the Arizona SIP does not include a
SO2 emissions limit corresponding to the existing
SO2 controls at SGS Unit 3, the State should have provided
such a demonstration, including consideration of whether SGS Unit 3 is
subject to an enforceable SO2 emissions limit that ensures
its SO2 emissions rate will not increase.
Second, regarding the Mount Baldy Wilderness Area, although we
commend the efforts in Arizona that contributed to the noted visibility
improvement at the Mount Baldy Wilderness Area in the first planning
period, previous and ongoing measures are not automatically sufficient
to ensure ongoing reasonable progress. The regional haze requirements
of CAA sections 169A and 169B and 40 CFR 51.308 need to be
satisfied.\24\ In particular, the increment of progress that is
``reasonable progress'' for a given implementation period is determined
through the four statutory factors.\25\ While progress made in the
first implementation period, ongoing emissions trends, and anticipated
changes in emissions may inform a state's regional haze planning
process, these circumstances alone do not satisfy a state's obligation
to determine and include in its SIP the measures that are necessary to
make reasonable progress in the second planning period. We also note
that, while Mount Baldy is the closest Class I area to SGS and
therefore has the highest Q/d (emissions in tons per year divided by
distance to an affected Class I area in kilometers) value (339) with
respect to SGS,\26\ this does not mean that Mount Baldy is the only
Class I area affected by emissions from SGS. ADEQ did not specifically
identify all the Class I areas that may be affected by emissions from
each of the sources it evaluated. Nonetheless, given that SGS had a
2018 Q of 17,044 tons per year (tpy) \27\ and is located within 300 km
of 15 different Class I areas,\28\ it is likely to contribute to
visibility impairment at a number of Class I areas.
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\24\ See 64 FR 35714 (July 1, 1999), 35721-35722 for additional
explanation as to the EPA's determination that emissions from all
States reasonably contribute to visibility impairment and thus are
subject to the regional haze regulations. Additionally, in the 2017
RHR, the EPA ``reiterat[ed] that the CAA requires States to consider
the four statutory factors . . . in each implementation period to
determine the rate of progress towards natural visibility conditions
that is reasonable for each Class I area.'' 82 FR 3078 (January 10,
2017), 3080.
\25\ 40 CFR 51.308(f)(2)(i).
\26\ Plan Appendix C, p. 21, Table 1. Q is calculated as the
total 2018 annual facility-wide NOX, SO2, and
PM10 emissions in tpy, excluding processes determined by
ADEQ to be effectively controlled.
\27\ Id.
\28\ 79 FR 9318, 9360, Table 50 (February 18, 2014).
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Finally, with respect to Tri-State's request regarding enforceable
shutdowns, we note that the EPA's role in acting on SIP submittals is
to evaluate whether they meet applicable CAA
[[Page 102748]]
requirement, not to establish new requirements. Tri-State may choose to
work with ADEQ to establish enforceable shutdowns as part of a
subsequent SIP revision. However, we note that even if there were an
enforceable shutdown in 2031, this would not automatically preclude the
unit from consideration under a four-factor analysis.\29\
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\29\ See 2019 Guidance, pp. 20-21 (``It may be more challenging
for a state to reasonably use a shorter remaining useful life as the
basis for not selecting sources the further away the enforceable
shutdown date gets from 2028'').
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Comment A.3. Tri-State comments that it was unreasonable for the
EPA to use the July 8, 2021 ``Clarifications Regarding Regional Haze
State Implementation Plans for the Second Implementation Period''
(``2021 Clarifications Memo'') as a basis for disapproval of the 2022
Arizona Regional Haze Plan. Tri-State indicated that although ADEQ
submitted its plan over a year late on August 22, 2022, ADEQ was over
three years into the process of developing the plan, working with the
Western Regional Air Partnership, the EPA, other states, Federal Land
Managers (FLMs) and members of the public, was nearly complete and
ready to go through the Arizona rulemaking process when the EPA
published the 2021 Clarifications Memo. Tri-State also noted that the
rulemaking process can take over a year due to various tasks required.
Response A.3. The EPA disagrees that it used the 2021
Clarifications Memo as a basis for disapproving portions of the 2022
Arizona Regional Haze Plan. Contrary to the commenter's suggestion, the
EPA's guidance, including the 2021 Clarifications Memo, is not the
basis for our disapproval. Rather, the partial disapproval is based on
the Plan's failure to satisfy the requirements of the relevant portions
of the RHR and CAA sections 169A and 169B. We did cite the guidance
documents because these documents provide helpful context explaining
the EPA's interpretations of the applicable statutory and regulatory
requirements against which we are required to evaluate SIP submittals.
Commenters are free to disagree and raise concerns with those
interpretations as part of the notice and comment process on individual
SIP actions. However, in this instance, the commenter does not appear
to object to any of the interpretations in the 2021 Clarifications
Memo, only to the fact that they were provided shortly before the due
date for the plans.
With regard to timing, we note that the 2021 Clarifications Memo
was developed in response to issues that EPA regions and other
stakeholders had raised regarding draft regional haze SIP revisions
that were already under development by states.\30\ The 2021
Clarifications Memo therefore necessarily came during the SIP
development process and, in comparison to the SIP-specific feedback
previously provided by the EPA prior to its issuance, was intended to
``offer feedback more broadly to help support SIP development,
submittal, review, and action for the second planning period.'' \31\
With regard to Arizona's Plan specifically, throughout the EPA's
collaboration with ADEQ during early engagement, EPA staff advised ADEQ
of many of the interpretations that would be expressed in the 2021
Clarifications Memo. Therefore, we do not agree that it was improper
for the EPA to cite to the 2021 Clarifications Memo as further
explanation for why portions of the 2022 Arizona Regional Haze Plan did
not comply with the applicable statutory and regulatory requirements.
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\30\ 2021 Clarifications Memo, p. 1.
\31\ Id.
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B. Comment Letter From ADEQ
Sections I (``Background'') and XI (``Conclusion'') of ADEQ's
comment letter are informational and therefore do not require a
response. We respond to sections II-X of ADEQ's comment letter below.
Comment B.1. ADEQ asserts that the EPA's changing guidance
increased the burden of ADEQ's planning efforts by introducing
uncertainty and rework. ADEQ noted delays between final publication of
the 2017 RHR and the 2019 Guidance, as well as later changes to the
EPA's interpretation of the RHR that came close to the plan submittal
deadline, including the 2021 Clarifications Memo. ADEQ asserts that the
state did not have the resources to undertake the evaluation of
existing control measures, as noted in the 2021 Clarifications Memo, a
process that ADEQ states was unreasonably broad-reaching and
duplicative.
Response B.1. We disagree with ADEQ's assertions about the EPA's
additional guidance increasing the burden of ADEQ's planning efforts by
introducing uncertainty and rework. First and foremost, as stated
previously and throughout this notice, the EPA did not rely on guidance
as the basis for its partial disapprovals. Rather, the 2019 Guidance
and the 2021 Clarifications Memo merely provide additional context to
the EPA's interpretations of the statutory and regulatory requirements.
Both the 2019 Guidance and the 2021 Clarifications Memo were drafted to
be used as tools by States in the development of their second planning
period regional haze plans. However, neither of these documents were
necessary for States to develop and submit their SIP revisions.
Regarding the contents of the guidance, we do not agree that the
EPA significantly changed its interpretations in either the 2019
Guidance or the 2021 Clarifications Memo. The commenter has not
provided any examples of interpretations that it believes were changed
under the 2019 Guidance and provided only a single example from the
2021 Clarifications Memo, relating to the section entitled,
``Determining When Existing Measures are Necessary for Reasonable
Progress.'' We do not agree that interpretations set forth in this
section of the 2021 Clarifications Memo represented a significant
change in interpretation. Rather, they were intended to clarify the
following statement in the 2019 Guidance:
If a state determines that an in-place emission control at a
source is a measure that is necessary to make reasonable progress
and there is not already an enforceable emission limit corresponding
to that control in the SIP, the state is required to adopt emission
limits based on those controls as part of its long-term strategy in
the SIP via the regional haze second planning period plan
submission.\32\
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\32\ 2019 Guidance, p. 423.
Many states and other stakeholders raised questions about this
statement. In response, as part of the 2021 Clarifications Memo, the
EPA laid out in further detail our interpretation of the CAA and RHR
regarding how to make such a determination.
We also disagree, on multiple grounds, with the commenter's
assertion that the ``EPA's revised guidance requires an unreasonably
broad-reaching review of all existing control measures that are not
separately included in the regional haze plan to evaluate whether those
same measures should be duplicated in the regional plan to support
reasonable visibility progress.''
First, the 2021 Clarifications Memo did not establish any new
requirements. On the contrary, it clearly states that ``[t]his
memorandum does not change or substitute for provisions or requirements
of the CAA or RHR, nor does it create any new requirements. Rather,
this memorandum clarifies and provides further information on the
existing statutory and regulatory requirements.'' \33\ One of the key
requirements of the CAA and RHR is that all measures that are necessary
to make reasonable progress must be
[[Page 102749]]
included the SIP.\34\ However, neither the CAA, the RHR, or the 2019
Guidance explain how to determine whether an existing measure that
results from a four-factor analysis (or is used as the basis to avoid
such an analysis) is necessary to make reasonable progress. Based on
questions received on this subject during SIP development, it was clear
that further guidance on this question would be helpful. Accordingly,
the EPA provided this guidance in the 2021 Clarifications Memo.\35\
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\33\ 2021 Clarifications Memo, p. 2.
\34\ CAA 169A(b)(2); 40 CFR 51.308(f)(2).
\35\ 2021 Clarifications Memo, pp. 8-9.
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Regarding ``existing measures,'' the Memo explains:
When the outcome of a four-factor analysis is that no new
measures are reasonable for a source, the source's existing measures
are generally needed to prevent future visibility impairment (i.e.,
to prevent future emission increases) and thus necessary to make
reasonable progress. Measures that are necessary to make reasonable
progress must be included in the SIP.
However, there may be circumstances in which a source's existing
measures are not necessary to make reasonable progress.
Specifically, if a state can demonstrate that a source will continue
to implement its existing measures and will not increase its
emission rate, it may not be necessary to require those measures
under the regional haze program in order to prevent future emission
increases.
Similarly, with regard to existing ``effective controls'' used to
screen out sources from a four-factor analysis:
A decision to forgo a full four-factor analysis based on a
source's existing effective controls is equivalent to a
determination that no new measures are necessary to make reasonable
progress. In this scenario, existing effective controls are,
therefore, generally necessary to make reasonable progress and thus
must be adopted into the regulatory portion of the SIP. However, the
state may provide a weight-of-evidence demonstration as described in
Section 4.1 to justify that the existing effective control is not
necessary for reasonable progress.
Thus, the 2021 Clarifications Memo clarifies that, under the CAA
and the RHR, there is a general presumption that existing measures
resulting from a four-factor analysis (or relied upon to avoid such an
analysis) are necessary to prevent future visibility impairment and
therefore necessary to make reasonable progress. Accordingly, states
have the option to submit all such measures into the SIP (to the extent
they are not already approved into the SIP) without further evaluation
of whether the measures are necessary to make reasonable progress.
Alternatively, states may choose to provide a weight-of-evidence
demonstration that such measures are not necessary to make reasonable
progress. Importantly, however, such a demonstration is needed only
where an enforceable emissions limitation corresponding to an existing
measure has not already been approved into the SIP and is not being
submitted for SIP approval as part of the regional haze plan.
Therefore, we do not agree that a review of ``all existing control
measures that are not separately included in the regional haze plan''
is required.
Third, to the extent that a state chooses to undertake such a
demonstration that existing measures are not necessary to make
reasonable progress, we do not agree that it would be duplicative. On
the contrary, because such a demonstration is necessary only for
measures for which emissions limitations are not submitted into the
SIP, the state and the EPA need to evaluate relevant evidence
concerning whether the source will continue to implement its existing
measures and maintain its emissions rate in the absence of SIP-approved
requirements to do so, to ensure that visibility impairment does not
increase.
In sum, we disagree with ADEQ's characterization of the contents of
the 2021 Clarifications Memo and its role in our partial approval and
partial disapproval of the Plan.
Comment B.2. ADEQ comments that the EPA should not issue binding
decisions based on guidance alone where the bases for disapproval are
not in the rule or statute. ADEQ cites to statements in the 2019
Guidance and 2021 Clarifications Memo regarding screening out of
effectively controlled sources and determinations of whether existing
controls are necessary to make reasonable progress, as the examples of
guidance. Specifically, ADEQ asserts that ``[i]t was unreasonable for
the EPA's clarification memo to issue these additional specific
barriers to a determination that existing measures were effective at a
given source late in the development of second round regional haze
plans through guidance, and without additional notice and comment.''
Response B.2. We disagree that we issued our proposed decision
based on guidance. Rather, the proposal action clearly indicates that
the partial disapproval was based on failing to satisfy the
requirements of the relevant portions of the RHR and CAA sections 169A
and 169B, with citations to our guidance as further explanation. See
Response A.3 for more explanation.
We also note that ADEQ's comment appears to conflate two separate
questions: first, whether its justification for screening out a unit
based on existing effective emissions controls was sufficient, and
second, whether such existing effective control measures are necessary
to make reasonable progress. In our proposal, we discussed each of
these issues as two separate grounds for our proposed partial
disapproval with respect to 40 CFR 51.308(f)(2).\36\ While both
questions apply to sources that are screened out from a four-factor
analysis based on existing effective controls, they are distinct. The
first issue is further addressed in Response B.3 of this document,
while the second is addressed in Response B.1. Therefore, we do not
agree that the 2021 Clarifications Memo created any additional barriers
to a determination that existing measures were effective at a given
source.
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\36\ See 89 FR 47398, 47428 (``ADEQ did not provide an adequate
justification for screening out certain sources and units from
conducting a four-factor analysis on the basis that they are
``effectively controlled'' as part of its source selection
process'') and 47431 (``ADEQ has not addressed whether any of the
existing measures relied upon in its four-factor analyses or its
`effective controls' determinations are necessary to make reasonable
progress and thus should be a part of the State's long-term strategy
for the second planning period.'').
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Comment B.3. ADEQ disagreed with the EPA's proposed determination
that Arizona failed to provide adequate justification for deferring
certain emissions units from consideration. ADEQ indicated that the
state has the flexibility to reasonably select a set of sources for an
analysis of control measures, and that it did not exclude entire
facilities from consideration or exempt sources that had previously
adopted BART or reasonable progress controls, but rather excluded just
the emissions processes or units that recently installed highly
effective controls from the calculation of the Q/d value for that
facility. ADEQ also provided additional information regarding effective
controls in Attachment A of its letter.
Response B.3. We agree that states have flexibility to reasonably
select a set of sources for analysis of controls measures. However, as
described in our proposal, we find that ADEQ's approach to screening
out units from conducting a four-factor analysis on the basis that they
are ``effectively controlled'' was not adequately documented.\37\
Specifically, in some cases, ADEQ did not identify the controls for
each pollutant at each unit or process, the associated limits, or where
the controls and/or limits currently exist in the Arizona SIP. In other
cases, ADEQ listed the controls, but did not clearly explain why it is
[[Page 102750]]
reasonable to assume, without conducting a four-factor analysis, that
no additional controls would be reasonable.\38\ Accordingly, ADEQ
should have identified where the existing limits are found in the SIP
or FIP and clearly explained why no additional controls would likely be
reasonable under a four-factor reasonable progress analysis for the
second planning period. Without this analysis and explanation, it is
not clear what is a part of Arizona's long-term strategy for the second
planning period.
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\37\ 89 FR 47398, 47428.
\38\ See 40 CFR 51.308(f)(2)(i) (``. . . The State must include
in its implementation plan a description of the criteria is used to
determine which sources or groups of sources it evaluated and how
the four factors were taken into consideration in selecting the
measures for inclusion in its long-term strategy''). See also 2021
Clarifications Memo, p. 5; 2019 Guidance, p. 23.
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As noted in its comment, ADEQ conducted its effective controls
screening on a unit-specific basis. However, it did not do so on a
pollutant-specific basis. Rather, ADEQ screened out entire units from
further evaluation for NOX, SO2, or
PM10 if the units met ADEQ's screening criteria for any one
of these pollutants. We find that this approach was unreasonable
because it resulted in the screening out of entire units without
consideration of whether the unit had effective controls for all three
of the pollutants covered in ADEQ's long-term strategy. For example,
ADEQ screened out AEPCO Apache Unit 3 and TEP Irvington Generating
Station (IGS) Unit 4 from any further analysis because these units were
converted from coal to natural gas under better-than-BART alternatives
during the first planning period.\39\ The EPA acknowledges that fuel
combustion units that are required to combust pipeline-quality natural
gas are generally considered to be effectively controlled for
SO2 and PM.\40\ However, they are not necessarily
effectively controlled for NOX, based on burning natural gas
alone. Therefore, we find that ADEQ has not provided adequate
justification for screening these units out from an analysis of
NOX controls.
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\39\ 2022 Arizona Regional Haze Plan, Appendix C, Table 147.
\40\ See 2019 Guidance, p. 24.
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Additionally, we appreciate the documentation in Attachment A that
ADEQ provided in its attachment letter. However, this information would
need to be part of a SIP revision subject to review by the public and
FLMs in order for the EPA to consider it as part of the long-term
strategy. If ADEQ develops a new SIP revision intended to remedy the
deficiencies discussed in our proposed and final actions on the Plan,
it may be appropriate to include this information in that SIP revision.
Comment B.4. ADEQ asserts that, despite indicating that flawed
emissions rates were used for some of ADEQ's analyses, the proposed
action identified one example of differing achievable emissions rates
for selective catalytic reduction (SCR) and selective non-catalytic
reduction (SNCR) controls for SGS Units 1 and 2's four factor analyses.
In this example, ADEQ used 0.060 lb/MMBtu and 0.15 lb/MMBtu as
reasonable estimates of the achievable rates at TEP SGS Units 1 and 2
for SCR and SNCR, respectively.
For SCR, ADEQ additionally states the study that the EPA cited for
its justification that SCR has been demonstrated to achieve 0.05 lb/
MMBtu (or up to 90 percent reduction) was published in 2005 and found
that the 20 SCR systems examined in 2003 achieved NOX
emissions rates between 0.04 and 0.07 lb/MMBtu.\41\ In addition, ADEQ
noted that EPA found 0.065 lb/MMBtu as a ``reasonable estimate of
average SCR performance'' in its 2016 Regional Haze FIP action for the
Salt River Project Coronado Generating Station Unit 1.
---------------------------------------------------------------------------
\41\ Ravi K. Srivastava, Robert E. Hall, Sikander Khan, Kevin
Culligan & Bruce W. Lani (2005) Nitrogen Oxides Emission Control
Options for Coal-Fired Electric Utility Boilers, Journal of the Air
& Waste Management Association, 55:9, 1367-1388, DOI: 10.1080/
10473289.2005.10464736. Available at: https://doi.org/10.1080/10473289.2005.10464736.
---------------------------------------------------------------------------
For SNCR, ADEQ additionally states that the EPA did not provide a
technical citation for disagreeing with ADEQ's use of 0.15 lb/MMBtu for
SNCR. ADEQ noted that the proposed rule indicated that ADEQ did not
demonstrate why source specific conditions would cause SNCR on these
units to achieve as little as a 15 percent reduction. ADEQ noted that
Srivastava et al. found that while smaller boilers (e.g., 76-78 MW
units) were able to achieve greater than 60 percent NOX
reductions, larger boilers (e.g., 500 MW units) ``may be capable of
achieving reductions of only ~30%.'' ADEQ indicates that SGS Units 1
and 2 units have nameplate ratings of 425 MW and would be expected to
achieve less reductions than smaller units. ADEQ also points to the
inlet concentration as another consideration for achievable emissions
rates with post combustion emissions control. Citing Srivastava et al.,
ADEQ notes that the study found that ``in the absence of reliable SCR
inlet NOX data, the SCR efficiencies are estimated using an
inlet NOX level of 0.5 lb/10\6\ Btu.'' However, in the case
of SGS Units 1 and 2, the NOX concentration in the exhaust
from these units is less than 100 parts per million by volume (ppmv)
with an assumed rate of 0.174 lb/MMBtu and 0.178 lb/MMBtu being used in
ADEQ's four factor analysis cost calculations for Unit 1 and Unit 2,
respectively. Given the already low NOX inlet concentration,
an achievable emissions rate of 0.15 lb/MMBtu was determined to be
reasonable. ADEQ further noted that additional information related to
achievable emissions rates for SNCR for SGS Unit 1 and Unit 2 can be
found in Appendix K, Section II(J), Comment 10 of the 2022 Arizona
Regional Haze Plan.
Response B.4. We acknowledge that we only highlighted a single
example of flawed emissions rates in our proposal--for NOX
at SGS Units 1 and 2. However, as explained in response A.1, in
evaluating whether a SIP revision (or a portion thereof) meets each of
these CAA requirements, the EPA is not required to separately evaluate
and discuss each of the thousands of pieces of information, analyses
and determinations comprising the SIP submission. Rather, the EPA may
focus on those specific elements of the SIP revision that form the
basis for our determination that certain applicable requirements are
met and certain applicable requirements are not met. In this instance,
we focused on these units because they are expected to have the highest
NOX emissions of any units in the State (2,099 and 2,283 tpy
respectively) by 2028, so it is important to carefully examine whether
additional NOX reductions from these units are necessary to
make reasonable progress. Given this context, and for the reasons
outlined below, we do not agree with ADEQ that it has adequately
documented the emissions rates assumed in this analysis, which are a
critical component of a four-factor analysis.
The emissions rate achievable by a unit equipped with SCR is
determined by several parameters and technological limitations. There
are periods of operation in which the SCR is not able to operate,
particularly during periods of startup and shutdown.\42\ The SCR
emissions rate (lb/MMBtu) achievable by a particular unit represents
the combination of two primary elements: (1) the controlled
NOX emissions rate during periods of normal unit operation
when the SCR is able to operate, and (2) the uncontrolled
NOX emissions rate
[[Page 102751]]
during periods of startup and shutdown when the SCR system cannot
operate, and result in unit emissions higher than the SCR controlled
emissions rate that increase the unit's overall emissions rate.
---------------------------------------------------------------------------
\42\ Control Cost Manual, Section 4, Chapter 2 Selective
Catalytic Reduction (June 2019), section, 2.2.1 Reduction Chemistry,
Reagents, and Catalyst, available at https://www.epa.gov/sites/default/files/2017-12/documents/scrcostmanualchapter7thedition_2016revisions2017.pdf.
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With regard to the first element, the 2005 study is not the sole
basis for our finding that an overall emissions rate of 0.050 lb/MMBtu
is achievable with SCR on an annual average basis. There are multiple
instances of coal-fired units installing SCR on a retrofit basis and
achieving 0.050 lb/MMBtu in practice on an annual average basis.\43\
These units are typically able to achieve this overall level of control
by being able to operate at NOX annual emissions rates at or
below 0.050 lb/MMBtu based upon periods of normal operation. Even
several of the units identified by ADEQ operating in the annual average
emissions rate range of 0.055 to 0.065 lb/MMBtu are still achieving
emissions rates of 0.050 lb/MMBtu and lower based upon periods of
normal operation.\44\ We consider this information sufficient to
establish that an 0.050 lb/MMBtu emissions rate warrants consideration
as technically feasible for coal fired units generally during periods
of normal operation, absent source specific factors affecting
feasibility. We are not aware of assertions by either ADEQ or TEP that
the Springerville units specifically cannot achieve 0.050 lb/MMBtu when
operating with SCR during periods of normal operation.\45\ Therefore,
we find that ADEQ should have considered a controlled NOX
emissions rate of 0.050 lb/MMBtu for SGS Units 1 and 2 when operating
with SCR during periods of normal operation.
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\43\ See Docket Item F-16 ``SCR Tangentially fired Coal.xlsx.''
\44\ Id.
\45\ TEP has indicated that vendors have been unwilling to
provide manufacturer guarantees of 0.050 lb/MMBtu over the lifetime
of the SCR system. Because manufacturer guarantees include
contractual and financial considerations beyond technical
performance of the SCR system, we do not consider an inability to
secure a manufacturer guarantee to constitute a determination that
an emission rate of 0.050 lb/MMBtu is not technically feasible,
particularly with regard to periods of normal operation.
---------------------------------------------------------------------------
The majority of analysis performed by ADEQ is relevant to the
second element and is intended to support a position that, when the
annual emissions rate achievable during normal operations is combined
with emissions from the number of startup/shutdown cycles exhibited by
SGS Units 1 and 2, an annual average emissions rate of 0.06 lb/MMBtu is
what is reasonably achievable for these units. We consider it
appropriate to account for the effect of startup/shutdown emissions on
the emissions rate achievable by the unit, but disagree that the
analysis provided by ADEQ supports an annual average emissions rate of
0.060 lb/MMBtu. TEP's four factor analysis and ADEQ's SIP submittal did
not include startup/shutdown history to support the assertion that
Springerville has more startup/shutdown events than comparable
tangentially-fired coal fired boilers. A review of Clean Air Markets
Program Data (CAMPD) emissions and operating data over a 2021-2023
timeframe indicate that SGS Units 1 and 2 each experienced
approximately 9 to 14 startup events per year. While we acknowledge
that some portion of SGS baseline emissions consist of startup/shutdown
emissions that cannot be controlled by an SCR system, the substantial
majority of baseline emissions are attributable to emissions during
normal operation. We estimate that approximately 97-98% of baseline
emissions are attributable to normal operations that could be
controlled by SCR.\46\ Given that the majority of unit emissions can be
controlled by SCR to 0.050 lb/MMBtu or lower and that the remaining 2-3
percent of operations are characterized by low inlet SCR emissions
rates, we do not consider the historical startup/shutdown operating
profile to support deviating to an 0.06 lb/MMBtu emissions rate on an
annual average basis.
---------------------------------------------------------------------------
\46\ See Docket Item F-17 [SGS CAMPD 2021-23.xlsx]. To
illustrate SCR control potential during periods of normal operation,
this spreadsheet is based on the key assumption that emissions from
any day a unit did not operate a full 24 hours would be attributable
to startup/shutdown periods. An hourly analysis would provide a more
refined and precise assessment, though we consider this assumption
to overestimate the emissions attributable to startup/shutdown by
including all emissions from partial operating days towards startup/
shutdown.
---------------------------------------------------------------------------
ADEQ cites a limit of 0.065 lb/MMBtu established for SRP Coronado
Unit 1 in a 2016 Regional Haze FIP action as support for the use of an
annual average emissions rate of 0.060 lb/MMBtu. We wish to clarify
that the 0.065 lb/MMBtu value was not the annual average emissions rate
used in cost calculations, but was the emissions limit established on a
rolling 30-boiler operating day (BOD) average, for Coronado Unit 1. We
relied upon an 0.050 lb/MMBtu annual average emissions rate in
developing cost calculations for SCR,\47\ which is consistent with our
action here. In establishing a rolling 30-BOD limit for Coronado Unit 1
in that action, we acknowledged that upward revisions to the SCR design
rate achievable on an annual average basis would be appropriate in
order to accommodate the effect that multiple startup/shutdown events
would have to overall unit emissions rates on an averaging period that
could be as short as 30 days. Based upon startup/shutdown frequency and
projected controlled emissions rate information provided by SRP, we
finalized 0.065 lb/MMBtu as an appropriate emissions limit and
reasonable estimate of SCR performance over a short-term period.\48\
Given that the 0.065 lb/MMBtu limit reference here corresponds to a
different, shorter averaging period, and was itself based on an 0.05
lb/MMBtu annual average emissions rate, we do not consider it
supportive of an 0.060 lb/MMBtu annual average emissions rate.
---------------------------------------------------------------------------
\47\ See Docket Item EPA-R09-OAR-2012-0021-0204 for cost
calculation details. More information related to establishing a 30
BOD limit relative to an annual emissions rate can be found in our
March 31, 2015 (80 FR 17010) proposed reconsideration, including
Docket Items EPA-R09-OAR-2015-0165-0029 through -0033 for further
details. We note that SRP identified an SCR design target during
periods of normal operation as low as 0.03 lb/MMBtu for Coronado
Unit 1, though we acknowledge there are source specific differences
with the SGS units.
\48\ It is unclear to what extent a comparable 30-BOD limit may
be appropriate for the SGS units, but we note that the SGS units
appear to have historically had at least as many startup/shutdown
events as Coronado Unit 1.
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For SNCR, we appreciate the additional analysis provided in the
comment and citation to Appendix K summarizing ADEQ's responses to
public comments. We acknowledge that low inlet NOX
concentrations are a general consideration in evaluating NOX
controls that can negatively impact control efficiencies and achievable
controlled emissions rates. Therefore, in order to further evaluate
whether a rate lower than 0.15 lb/MMBtu may be achievable with SNCR at
SGS Units 1 and 2 on an annual basis, we examined CAMPD emissions data
over a 2019-2023 time period for SNCR-equipped units comparable to SGS
Units 1 and 2, specifically filtering for tangentially-fired coal units
operating with SNCR on a retrofit basis.\49\ We identified four
currently operating SNCR-equipped units achieving NOX
emissions rates below 0.15 lb/MMBtu, ranging between 0.10 to 0.12 lb/
MMBtu.\50\ These values represent the highest performing SNCR-equipped
units, with the next best performing units operating at emissions rates
of 0.15 lb/MMBtu and higher. At least one of the four units we
identified has the capability to use natural gas,
[[Page 102752]]
which could have the effect of lowering emissions rates relative to
units that do not have this capability, such as SGS Units 1 and 2.\51\
Based on the three remaining units, each unit had relatively low pre-
SNCR emissions rates that are comparable to SGS Unit 1 and 2, and each
unit is able to achieve SNCR emissions rates below 0.15 lb/MMBtu and
control efficiencies better than 15 percent. Neither ADEQ or TEP has
provided documentation to support a claim that SGS Units 1 and 2
specifically cannot achieve an annual emissions rate lower than 0.15
lb/MMBtu with SNCR. Therefore, we find that ADEQ should have considered
a NOX emissions rate of lower than 0.15 lb/MMBtu for SNCR at
SGS Units 1 and 2.
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\49\ See Docket Item F-21, ``SNCR Tangential Coal Units.xlsx.''
\50\ See Docket Item F-21. These units include Boswell Energy
Center (MN) Unit 4, Will County (IL) Unit 4, and Jeffrey Energy
Center (KS) Units 2 and 3.
\51\ Based on reported natural gas fuel usage, the Boswell
Energy Center appears to use natural gas primarily as a startup
fuel, but does periodically use quantities of natural gas that
suggest co-firing with coal for electricity generation purposes.
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We also note that this was one of multiple flaws that formed the
basis of our determination that the State's long-term strategy did not
satisfy the requirements of 40 CFR 51.308(f)(2), including reasons
related to source selection and control determinations, as detailed in
our proposal and elsewhere in this document. Therefore, even assuming
that a control efficiency of 15 percent for SNCR at SGS Units 1 and 2
was reasonable, it would not have changed our determination that the
2022 Arizona Regional Haze Plan did not satisfy the requirements of 40
CFR 51.308(f)(2).
Comment B.5. ADEQ disagrees with the EPA's determination that
Arizona deviated from the Control Cost Manual without documentation as
part of its four factor analyses with regards to remaining useful life
calculations for the El Paso Natural Gas (EPNG) Williams facility and
the use of source specific interest rates without providing adequate
documentation in the control measure analyses for the EPNG Williams and
Willcox facilities.
ADEQ indicates that the EPA Control Cost Manual Section 4, Chapter
2, states that ``. . . a representative value of the equipment life for
SCR at power plants can be considered as 30 years . . . [f]or other
sources, the equipment life can be between 20 and 30 years.'' ADEQ
noted that while it erroneously omitted this citation from the EPNG
Williams Turbine analysis, the Control Cost Manual citation and
justification for use of 25 years is the midpoint between the 20-30
year range for non-EGU SCR systems and was included in the EPNG Willcox
SCR analysis for Turbines 1 and 2.\52\ ADEQ also noted that it received
cost calculation spreadsheets utilizing a 25-year useful life for SCR
for the EPNG Williams Turbine 1 from the US Forest Service.\53\
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\52\ 2022 Arizona Regional Haze Plan, Appendix C, Section
C3.8.5.2, Page 146.
\53\ 2022 Arizona Regional Haze Plan, Appendix L, Section 4.2.4,
Comment 14.
---------------------------------------------------------------------------
ADEQ also explains that in its analysis of remaining useful life
for compressor engines at the EPNG Williams facility, ADEQ documented
the assumptions and basis for using 20 years to amortize NOX
controls in Appendix C, Section C3.7.6.5, which includes citations to
the Control Cost Manual and the EPA's 2016 technical support document
for the Cross State Air Pollution Rule for the 2008 Ozone NAAQS.
Response B.5. We appreciate the clarification regarding ADEQ's
reasoning for use of a 25-year remaining useful life for the EPNG
Williams turbines and 20 years for the EPNG Williams engines. While
there are instances of combustion turbines with operating lifetimes
beyond 25 years (with or without retrofit controls), we acknowledge
that EPA guidance such as the Control Cost Manual has not recommended a
value beyond the 20-30 year range. ADEQ's use of a 25-year useful life
represents the midpoint of Control Cost Manual recommendations, and
therefore we agree that it is consistent with the Control Cost Manual.
However, we note that the lack of documentation of remaining useful
life for the units at Williams Compressor Station was one of the many
flaws that we identified in the state's long-term strategy including
reasons related to source selection and control determinations, as
detailed in our proposal and elsewhere in this document. Therefore,
this clarification does not change our determination that the 2022
Arizona Regional Haze Plan did not satisfy the requirements of 40 CFR
51.308(f)(2).
Comment B.6. ADEQ disagrees with the EPA's determination that ADEQ
did not reasonably weigh the statutory factors in reaching its control
determinations with regards to application of cost thresholds. ADEQ
disagrees that Arizona's consideration of incremental cost
effectiveness in its four factor analyses were done in an unreasonable
manner. ADEQ cites to its explanation that the incremental cost of
requiring low-emission combustion 2 (LEC 2) as opposed to Air-Fuel
ratio adjustments is $5,034/ton, which ADEQ considered reasonable, and
therefore ADEQ found that LEC 2 is a more appropriate control for
Williams Reciprocating Engine 1 (RECIP-1).\54\
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\54\ 2022 Arizona Regional Haze Plan, Appendix C, Section
C3.7.6.2, page 129.
---------------------------------------------------------------------------
ADEQ also asserts that it also analyzed other determinations from
the regional haze first implementation period besides the incremental
cost effectiveness value for the Nelson Lime Plant action, and ADEQ
provides this information in Table 1 of its comment letter.
Response B.6. We appreciate ADEQ's explanation about LEC 2 on
RECIP-1, but we note that ADEQ also rejected LEC 3 on Williams RECIP-1,
on the grounds that the incremental costs of these controls, relative
to less stringent controls, were excessive. In addition, ADEQ did not
provide or consider incremental cost effectiveness values for the same
controls for the other units at the same source (RECIP-2 or RECIP-5).
Although states may choose to consider incremental costs in a
reasonable manner,\55\ we find it was unreasonable for ADEQ to do so
only for specific units and controls, rather than in a consistent
manner across all units and controls. Such inconsistent treatment of
sources without explanation is the ``the hallmark of arbitrary
action.'' \56\
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\55\ See, e.g., 2019 Guidance, p. 40.
\56\ Nat'l Parks Conservation Ass'n v. EPA, 788 F.3d 1134, 1145
(9th Cir. 2015).
---------------------------------------------------------------------------
We also appreciate the addition of Table 1 identifying other first
implementation period incremental cost effectiveness decisions.
However, this information was not included in the Plan and therefore
not subject to review by the public or FLMs. Accordingly, it cannot be
relied upon to meet the requirement of 40 CFR 51.308(f)(2)(iii) for
States to document the technical basis for their long-term strategy.
Moreover, even if the information had been included in the Plan, it
would not have justified ADEQ's inconsistent consideration of
incremental cost effectiveness, for the reasons described in our
proposal and the preceding paragraph.
Comment B.7. ADEQ states that, contrary to the EPA's contention,
ADEQ did not rely upon visibility benefits for its control
determinations, but rather visibility impacts were reported for some
sources to give reference to the reader as to the relative impact of
these sources or controls on visibility. ADEQ also asserts that nothing
in the CAA, RHR, or 2019 Guidance prevents the department from
considering visibility benefits as part of its analysis and stated that
``the ADEQ's labeling of the visibility benefits associated with
specific control scenarios as `small'
[[Page 102753]]
comports with similar language used by the EPA in their regional haze
actions.'' \57\
---------------------------------------------------------------------------
\57\ Citing e.g., ``relatively small visibility benefits'' in 79
FR 52419, 52439 (September 3, 2014).
---------------------------------------------------------------------------
Response B.7. We agree with ADEQ that in its Response to Comments,
ADEQ stated that ``[v]isibility impacts were reported for some sources
to give reference to the reader as to the relative impact of these
sources or controls considered on visibility. However, this information
was not considered in the Department's emissions control measure
determinations.'' \58\ However, this assertion is contradicted by the
language of some of the control determinations in the Plan. For
example, in the NOX four-factor analysis for SGS, ADEQ
stated that:
---------------------------------------------------------------------------
\58\ Id., Appendix K, p. 9.
ADEQ does find visibility impacts a useful consideration given
the goal of the regional haze program is to improve visibility in
Class I areas. As such, ADEQ reports modeled visibility impacts in
this documentation. The small modeled visibility benefits associated
with the modeled hypothetical NOX emission reduction
supports the determination that no additional NOX
controls are necessary to make reasonable progress towards natural
visibility at Class I areas during this implementation period.\59\
---------------------------------------------------------------------------
\59\ Plan, Appendix C, p. 221 (emphases added).
Similar language appears following the SO2 four factor
analysis for SGS \60\ and in the summary of ADEQ's NOX
reasonable progress determination for IGS Unit 3.\61\ This language
indicates that ADEQ did consider visibility for these units, and
specifically, that it weighed the ``small modeled benefits'' of
controls in determining that no additional NOX controls were
warranted at SGS Units 1 and 2 and IGS Unit 3, and no more stringent
SO2 controls were warranted at SGS Units 1 and 2.
---------------------------------------------------------------------------
\60\ Id. at 234 (``The small visibility benefits associated with
the modeled SO2 controls supports the determination that
CDS and wet FGD control options are not necessary to make reasonable
progress towards natural visibility at Class I areas during this
implementation period.'').
\61\ Id. at 197 (``The small modeled visibility benefits
associated with additional controls support the determination that
no additional controls are necessary to make reasonable progress
towards natural visibility at Class I areas during this
implementation period.'').
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While states have the option to consider visibility benefits, along
with the four statutory factors, in making control determinations, if
they choose to do so, they must do so ``in a reasonable way that does
not undermine or nullify the role of the four statutory factors in
determining what controls are necessary to make reasonable progress.''
\62\ In this case, we find it was not reasonable for ADEQ to consider
visibility benefits only for specific sources and without any
explanation of what would constitute a significant visibility benefit.
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\62\ 2021 Clarifications Memo, p. 12 (quoting Response to
Comments on Protection of Visibility: Amendments to Requirements for
State Plans; Proposed Rule at 186).
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In the action cited by ADEQ where the EPA considered ``relatively
small visibility benefits,'' \63\ we were comparing the relatively
small benefits of a control at one source to the relatively larger
visibility benefits expected to result from controls at other
sources.\64\ In contrast, in the 2022 Arizona Regional Haze Plan, ADEQ
did not find any visibility benefits at any source to be anything other
than small. Thus, as explained in our proposal regarding SGS Units 1
and 2, ``[i]n the absence of any opportunities for larger emissions
reductions and corresponding visibility benefits, we find that ADEQ's
reliance on `small' visibility benefits as an additional justification
for not adopting more stringent controls at these units is not
persuasive.'' \65\
---------------------------------------------------------------------------
\63\ 79 FR 52420, 52439.
\64\ See, e.g., id. at 52442 (referring to ``large visibility
benefits) and 52458 (``we consider this visibility benefit
sufficient to support installation of controls.'').
\65\ 89 FR 47398, 47430.
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Finally, we note that, even assuming that ADEQ did not consider
visibility benefits as part of its control determinations for SGS Units
1 and 2, we would still conclude that the determinations were flawed
for other reasons. In particular, for NOX, ADEQ did not
adequately justify the control efficiency used for SCR and SNCR, as
discussed in the proposal and response B.4.\66\ For SO2,
ADEQ unreasonably rejected wet FGD on the basis of incremental cost,
and set mass-based caps that will not ensure implementation of the
emissions reduction measures that are necessary to make reasonable
progress at these units, as discussed in the proposal and response B.8.
Furthermore, the lack of clarity in the Plan regarding whether or not
ADEQ considered visibility benefits in making its control
determinations for SGS Units 3 and 4 and IGS Unit 3, indicates a lack
of reasoned decision making that also supports our disapproval of the
Plan's long-term strategy.
---------------------------------------------------------------------------
\66\ 89 FR 47398, 47428 (May 31, 2024).
---------------------------------------------------------------------------
Comment B.8. ADEQ disagrees with the EPA's determination that ADEQ
did not reasonably weigh the statutory factors in reaching its control
determinations with regards to three issues noted in the proposed rule
concerning the mass-based emissions caps at SGS and IGS.
First, ADEQ asserts that the EPA's rationale is arbitrary and
capricious in regard to the rejection of wet FGD for SGS Units 1 and 2.
ADEQ states that the use of emissions limits in lieu of codifying
specific control technologies is a flexibility that the EPA itself used
in its reasonable progress determination for Phoenix Cement Clarkdale
(PCC).\67\ ADEQ asserts that the EPA established an emissions limit for
PCC that did not require the installation of a particular control
technology but rather compliance through other means of meeting the
limit.
---------------------------------------------------------------------------
\67\ 79 FR 52420, 52460.
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Second, regarding the EPA's contention that spray dry absorber
(SDA) upgrades may still be cost effective after the establishment of
the mass-based emissions caps, ADEQ comments that this manner of
analysis is not contemplated in the four-factor analysis as outlined in
the RHR or the 2019 Guidance. ADEQ asserts that the EPA has never
applied this standard whereby after the establishment of an emissions
limit based on the reductions achievable from a considered control
technology that a State must revisit and update the baseline emissions
of its four-factor analysis to reflect the new emissions limit. ADEQ
claims that for its analysis of SGS, ADEQ did not select a control
scenario in its four-factor analysis that included the imposition of
both emissions limits and the installation of SDA upgrades, and
therefore, the EPA should not substitute its judgment for ADEQ's
selection of SDA upgrades as the evaluated control measure for SGS
Units 1 and 2 or reject ADEQ's determination based on an arbitrary and
circular four factor analysis standard.
Third, ADEQ further disagrees with the EPA's assertion that the
mass-based emissions caps at SGS and IGS would not meaningfully
constrain the emissions from one unit during periods when the other
unit is not operating and argues that the rationale is arbitrary and
capricious. ADEQ notes that the EPA referenced TEP's 2023 Integrated
Resources Plan (IRP) and highlighted TEP's plans to retire SGS Unit 1
in 2027, but states that as the operating scenarios outlined in the IRP
are not federally enforceable conditions, ADEQ has no basis for the
consideration of these future scenarios as part of its control measure
analysis and the establishment of the mass-based emissions limits. ADEQ
states that the EPA should not rely upon unenforceable and hypothetical
operating scenarios to reject ADEQ's reasonable progress
determinations.
Lastly, ADEQ disagrees with the EPA's rationale that IGS Unit 3's
mass-
[[Page 102754]]
based emissions limits are not yet enforceable and therefore are not an
appropriate basis for modifying the baseline control scenario for a
four-factor analysis. ADEQ cites that for the EPA's BART determination
for Arizona Public Service (APS) Cholla generating station, the EPA
accepted a source specific permit revision for APS Cholla Unit 2 that
included a trigger that was conditional on the EPA's approval of the
SIP revision that altered the remaining useful life of the unit in
ADEQ's four factor analysis.\68\ Therefore, ADEQ concludes that the EPA
should approve ADEQ's reasonable progress determination for IGS Unit 3.
---------------------------------------------------------------------------
\68\ 81 FR 46852, 46860 (July 19, 2016).
---------------------------------------------------------------------------
Response B.8. We disagree with ADEQ's comments arguing that the
EPA's justification for disapproving the reasonable progress
determinations for SGS and IGS as it relates to the mass-based
emissions caps at SGS and IGS was improper.
First, we wish to clarify that we do not object to the use of
numeric emissions limitations as a means to implement control
determinations. Indeed, CAA section 169A(b)(2) specifically requires
the long-term strategy to include ``enforceable emissions limitations,
compliance schedules, and other measures that are necessary to make
reasonable progress.'' As explained in our proposal:
The amount of progress that is ``reasonable progress'' is based
on applying the four statutory factors in CAA section 169A(g)(1) in
an evaluation of potential control options for sources of visibility
impairing pollutants, which is referred to as a ``four-factor''
analysis. The outcome of that analysis is the emissions reduction
measures that a particular source or group of sources needs to
implement to make reasonable progress towards the national
visibility goal. . . . Such measures must be represented by
``enforceable emissions limitations, compliance schedules, and other
measures'' (i.e., any additional compliance tools) in a state's
long-term strategy in its SIP.\69\
---------------------------------------------------------------------------
\69\ 89 FR 47398, 47402-47403.
We find that the mass-based emissions caps set for SGS do not
represent the emissions reduction measures that were the outcome of the
state's four-factor analysis for the reasons described in our proposal
\70\ and herein. Therefore, these caps do not meet the requirements of
169A(b)(2) and (g)(1), or the corresponding provisions of the RHR.
---------------------------------------------------------------------------
\70\ 89 FR 47398, 47430.
---------------------------------------------------------------------------
Regarding PCC, we agree that in the EPA's reasonable progress
determination for PCC in the first implementation period, the EPA
established a mass-based emissions limitation for NOX.
However, the circumstances between PCC and SGS Units 1 and 2 differ in
important ways. The limit for PCC was set pursuant to 40 CFR
51.308(d)(3), which required the long-term strategy for the first
implementation period to ``include enforceable emissions limitations,
compliance schedules, and other measures as necessary to achieve the
reasonable progress goals established by States having mandatory Class
I Federal areas.'' \71\ In this instance, the Class I areas primarily
affected by emissions from PCC were in Arizona,\72\ and the emissions
reductions from PCC were reflected in the applicable RPGs for these
areas by scaling of visibility extinction components in proportion to
changes in total annual emissions.\73\ Under these circumstances, an
annual mass-based emissions limit corresponding to the level of annual
emissions reductions assumed in the RPG calculations was sufficient to
meet the applicable requirement for an emissions limit ``as necessary
to achieve'' the relevant RPGs.
---------------------------------------------------------------------------
\71\ 40 CFR 51.308(d)(3) (emphasis added).
\72\ See 79 FR 9318, 9354 Table 41 (showing impacts on Arizona I
class I areas).
\73\ 79 FR 52420, 52468-52469; FIP_RPG_estimates.xlsx.
---------------------------------------------------------------------------
In contrast, for the second planning period, the EPA clarified in
40 CFR 51.308(f)(2) that ``the long-term strategy must include the
enforceable emissions limitations, compliance schedules, and other
measures that are necessary to make reasonable progress, as determined
pursuant to (f)(2)(i) through (iv).'' 40 CFR 51.308(f)(i) in turn
requires the state to ``evaluate and determine the emission reduction
measures that are necessary to make reasonable progress by
considering'' the four statutory factors. Thus, the revised rule
clarifies that the long-term strategy must include emissions
limitations, compliance schedules, and other measures representing the
emissions reduction measures that the state determined to be necessary
to make reasonable progress, considering the four statutory factors.
The EPA provided recommendations on the appropriate form of such
emissions limitations and other measures in the 2019 Guidance and the
Clarifications Memo. Specifically, the 2019 Guidance recommends the use
of throughput-based limits, rather than mass-based limits (i.e.,
``caps'') for emissions limitations to implement measures necessary for
reasonable progress in most instances.\74\ The Guidance notes that
mass-based limits are allowed under the RHR, but explains that, ``[i]f
the state has determined, independent of the forecasted operating
level, that operation of the emission control equipment . . . is
necessary to make reasonable progress, a mass-based emission limit may
not be appropriate.'' \75\ The Clarifications Memo also reaffirms that
``whether for new or existing measures . . . an emission limit . . .
should be in the form of the emission rate achieved when implementing
those measures (e.g., pounds per million British thermal units or lbs/
MMBtu, pounds per hour or lbs/hr, or pounds per ton or lbs/ton of
produced material).'' \76\
---------------------------------------------------------------------------
\74\ 2019 Guidance p. 44.
\75\ Id. pp. 44-45.
\76\ 2021 Clarifications Memo, p. 11.
---------------------------------------------------------------------------
With regard to SGS 1 and 2, ADEQ concluded, based on a four-factor
analysis that, ``it is reasonable to require TEP to upgrade the current
SDA systems'' \77\ and did not indicate that this determination was
conditioned on a particular level of operation. Therefore, ADEQ should
have set limits in the form of the emissions rates achieved when
implementing SDA upgrades, e.g., lb/MMBtu limits, or should have
provided a rationale for why the mass-based limits, which could be met
without any control upgrades, nonetheless represent SDA upgrades.
---------------------------------------------------------------------------
\77\ Plan Appendix C, p. 232.
---------------------------------------------------------------------------
We also note that the mass-based limit at PCC was for a single
unit, meaning that it necessarily constrained the emissions from that
unit on an annual basis. In contrast, the mass-based limit at SGS Units
1 and 2 were set across two units. Accordingly, if one unit ceases to
operate, the limits would not meaningfully constrain emissions from the
other unit. In addition, ADEQ rejected more stringent controls at SGS
Units 1 and 2 based on its ``determination that another viable
reasonable control exists to reduce SO2 emissions from Units
1 & 2 (upgraded SDA).'' In contrast, the EPA did not reject any more
stringent controls for PCC based on incremental cost effectiveness.
Furthermore, the cap at PCC was intended, in part, to address concerns
raised during consultation with the facility's owner, the Salt River
Pima Maricopa Indian Community (SRPMIC).\78\ No similar considerations
exist with respect to SGS Units 1 and 2. Therefore, we find that the
circumstances concerning the PCC
[[Page 102755]]
mass-based cap are distinguishable from those concerning SGS Units 1
and 2.
---------------------------------------------------------------------------
\78\ 79 FR 9318, 9366 (``An annual cap would allow SRPMIC to
delay installation of controls until the Plant's production returns
to pre-recession levels and would thus help to address the
Community's concerns about the budgetary impacts of control
requirements.'')
---------------------------------------------------------------------------
Second, regarding our finding that SDA upgrades would be cost
effective after the establishment of the mass-based emissions caps, we
disagree that we substituted our judgment for ADEQ's by arbitrarily
rejecting ADEQ's determination based on a circular four-factor analysis
standard. Contrary to ADEQ's suggestion, we did not state that ADEQ was
required to revisit and update the baseline emissions of its four-
factor analysis to reflect the new emissions limitation. However, we
note that ADEQ did use this approach for IGS Unit 3 and determined that
with the emissions reductions associated with the new Unit 3 emissions
caps, no additional controls are necessary to make reasonable progress.
ADEQ did not provide any rationale for why it used this approach for
IGS Unit 3, but not for SGS Units 1 and 2.
Furthermore, the fact that the SDA upgrades would still be cost
effective following implementation of the mass-based caps at SGS Units
1 and 2 is relevant to whether the use of caps (in lieu of throughput-
based limits) is reasonable and appropriate in this particular case.
The fact that throughput-based (e.g., lb/MMBtu) limits equivalent to
SDA would still be cost-effective following implementation of the caps
(i.e., if TEP complies with the caps by lowering its operating level)
indicates that throughput limits based on the emissions rates
achievable with SDA upgrades may be necessary to make reasonable
progress, regardless of the future operating level. As previously
noted, the 2019 Guidance explains that, under such circumstances, mass-
based caps are generally not appropriate. Therefore, we believe this
consideration is relevant to the evaluation of whether mass-based caps
were reasonable and consistent with the requirements of the RHR in this
case.
Third, we agree with ADEQ's statement that the operating scenarios
outlined in the IRP are not federally enforceable conditions. However,
ADEQ's statement in its comment letter that it has ``no basis for the
consideration of these future scenarios as part of its control measure
analysis and the establishment of the mass-based emission limits'' is
inconsistent with its stated rationale in the Plan for establishing
caps instead of mass-based limits. Specifically, ADEQ stated that:
As discussed in TEP's 2020 IRP, Units 1 will transition to
seasonal operation in 2023 and Unit 2 in 2024. TEP is planning to
retire Unit 1 in 2027 and Unit 2 in 2032. TEP will be very likely to
manage its operating level strategically instead of completing the
upgrades to the SDA systems for meeting the RP requirements.
Therefore, ADEQ determines that a mass-based emission limit is
reasonable.\79\
---------------------------------------------------------------------------
\79\ 2022 Arizona Regional Haze Plan, Appendix C, p. 236.
In other words, ADEQ elected to establish caps specifically because
it anticipated that TEP could comply with these caps by reducing its
operating level consistent with its then-current IRP. Therefore, we do
not agree that it was inappropriate for the EPA to consider information
contained in TEP's most recent (2023) IRP in evaluating whether the
mass-based caps were reasonable and consistent with the RHR.
Lastly, we agree that for APS Cholla Unit 2, the EPA accepted a
source-specific permit revision that included a trigger that was
conditional on the EPA's approval of the SIP revision that altered the
remaining useful life of the unit in ADEQ's four factor analysis.
However, the APS Cholla scenario was distinguishable because, as
explained in the proposed rule,\80\ the SIP revision for APS Cholla
replaced the FIP that was applicable to these units.\81\ Therefore, it
would not have been reasonable to subject them to two inconsistent
requirements, one State and one Federal, under the RHR at the same
time. Thus, under these circumstances it was appropriate for ADEQ to
make the effectiveness of the permit conditions contingent on EPA SIP
approval. In the current case, there is no existing FIP in place
applicable to IGS Unit 3, so no similar rationale exists for making the
cap contingent upon approval by the EPA.
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\80\ 89 FR 47398, 47407, Table 1.
\81\ 77 FR 72511 (December 5, 2012).
---------------------------------------------------------------------------
Comment B.9. ADEQ asserts that the EPA should approve ADEQ's
reasonable progress goal (RPG) for the Sycamore Canyon Wilderness Area.
The state indicates that it provided the required ``robust
demonstration'' by including a detailed analysis of visibility data at
the Sycamore site to demonstrate that its slower rate of progress
results from significant increases in light extinction from coarse
mass.
Response B.9. As ADEQ notes in its comment, its analysis regarding
Sycamore Canyon focused on the substantial increase in coarse mass and
soil impairment at the Sycamore Canyon site. However, as explained in
our proposal, the rule requires a state with a Class I area whose RPG
is above the glidepath to demonstrate, based on the source selection
and four factor analyses required under 40 CFR 51.308(f)(2)(i), that
there are no additional emissions reduction measures for sources that
may reasonably be anticipated to contribute to visibility impairment in
the Class I area that would be reasonable to include in the long-term
strategy.\82\ Although ADEQ provided a detailed analysis of monitoring
data concerning Sycamore Canyon, it did not provide ``a robust
demonstration, including documenting the criteria used to determine
which sources or groups or sources were evaluated and how the four
factors required by paragraph (f)(2)(i) were taken into consideration
in selecting the measures for inclusion in its long-term strategy.''
\83\ Instead, it relied solely on monitoring data and the source
selection and four-factor analyses contained elsewhere in the Plan.\84\
For the reasons described in our proposal and elsewhere in this
document, we find that these analyses were inadequate to meet the
requirements of 40 CFR 51.308(f)(2). Therefore, the Plan also did not
meet the requirements of 40 CFR 51.308(f)(3)(ii)(A) with respect to
Sycamore Canyon.
---------------------------------------------------------------------------
\82\ 89 FR 47398, 47433.
\83\ 40 CFR 51.308(f)(ii)(A).
\84\ See Plan p. 106, footnote 112 (citing Plan Section 8 and
Appendix C).
---------------------------------------------------------------------------
Comment B.10. ADEQ indicates that the State intends to coordinate
with EPNG to provide supporting documentation for the interest rate.
ADEQ indicates that it intends to provide the interest rate
documentation as confidential business information (CBI) to the EPA for
review prior to publication of the final rule and requests that the EPA
approve the cost calculation for EPNG Willcox and Williams based on the
site-specific interest rate and supporting documentation.
Response B.10. Although ADEQ referenced the existence of
documentation and the possibility of sharing it with the EPA in its
response to comments in the Plan,\85\ no supporting documentation for
the interest rate was submitted as part of the Plan or prior to the
close the public comment period on the EPA's proposed partial approval
and partial disapproval. Therefore, the EPA is unable consider the
interest rate information as part of this action.
---------------------------------------------------------------------------
\85\ 2022 Arizona Regional Haze Plan, Appendix K.
---------------------------------------------------------------------------
Additionally, we note that the lack of documentation of EPNG's
firm-specific interest rate was one of several flaws that we identified
in the state's long-term strategy. Therefore, even if the appropriate
documentation had been submitted and within the proper time frame, that
alone would not have changed our determination that the
[[Page 102756]]
2022 Arizona Regional Haze Plan did not satisfy the long-term strategy
requirements of 40 CFR 51.308(f)(2).
Comment B.11. ADEQ voiced procedural concerns with the lack of
specificity in the EPA's proposed disapproval of the 2022 Arizona
Regional Haze Plan. ADEQ cites CAA 307(d)(3) as requiring a detailed
notice of rulemaking and cites Small Ref. Lead Phase-Down Task Force v.
EPA, 705 F.2d 506, 518-19 (D.C. Cir. 1983), for the proposition that
the notice provided in the proposal may be too general to be adequate
and that ``[a]gency notice must describe the range of alternatives
being considered with reasonable specificity.'' The commenter asserts
that the EPA's proposed rule does not provide ``detailed notice'' of
certain specific issues that form the basis for disapproval of entire
sections of the 2022 Arizona Regional Haze Plan, denying ADEQ the
opportunity to specifically address those bases for disapproval during
the comment period.
Response B.11. We disagree that the EPA's proposal provided
inadequate notice. The EPA's action on the 2022 Arizona Regional Haze
Plan is not subject to the requirements of CAA section 307(d). Those
requirements apply only to specific enumerated types of actions under
the CAA and to ``such other actions as the Administrator may
determine.'' \86\ Actions on SIPs are not one of the enumerated
actions, and the Administrator had not determined that this action is
subject to 307(d) pursuant to Section 307(d)(1)(V). Therefore, this
action is subject to the procedural requirements of the Administrative
Procedure Act (APA).
---------------------------------------------------------------------------
\86\ CAA Section 307(d)(1).
---------------------------------------------------------------------------
Accordingly, pursuant to 5 U.S.C. 553(b)(2) and (3), the EPA's
notice of proposed rulemaking regarding the Plan was required to
include ``reference to the legal authority under which the rule is
proposed'' and ``either the terms or substance of the proposed rule or
a description of the subjects and issues involved.'' The proposal
clearly met these requirements, as it stated the applicable legal
authorities and provided the EPA's review of the Plan in relation to
those requirements. The comment provides no basis to conclude that the
proposal failed to meet these requirements. Indeed, the opinion cited
by the commenter contrasts these more general APA requirements to the
more exacting requirements of CAA section 307(d) concerning the
contents of proposed rulemaking.\87\ While we agree with the commenter
that ``[a]gency notice must describe the range of alternatives being
considered with reasonable specificity,'' \88\ we find that our
proposal met this requirement, as it plainly stated that the EPA was
considering partially approving and partially disapproving the 2022
Arizona Regional Haze Plan and detailed the reason for this proposed
action. Please also see Responses A.1.
---------------------------------------------------------------------------
\87\ Small Ref. Lead Phase-Down Task Force v. EPA, 705 F.2d 506,
518-19 (D.C. Cir. 1983),
\88\ Id. at 549.
---------------------------------------------------------------------------
Comment B.12. ADEQ acknowledges that further FLM consultation is
required for a plan revision that will correct the deficiencies
identified in the proposed rulemaking action, but contends that the
inclusion of the nonpoint source selection analysis and selected
controls for nonpoint sources in the FLM review draft of the plan
provided FLMs adequate notice and review of Arizona's nonpoint source
rules that were codified after plan submission and submitted in the
2023 Arizona Regional Haze Rules Supplement.\89\
---------------------------------------------------------------------------
\89\ ADEQ SIP Revision: Nonpoint Rules to Supplement Arizona's
2022 Regional Haze SIP, ``2023 Arizona Regional Haze Rule
Supplement,'' August 22, 2023.
---------------------------------------------------------------------------
Response B.12.The EPA disagrees with ADEQ's contention that it
provided the FLMs with adequate notice and review of Arizona's nonpoint
source rules. The information about FLM consultation regarding the
rules specifically is not detailed in either the 2023 Arizona Regional
Haze Rules Supplement, or the 2022 Arizona Regional Haze Plan. The 2023
Arizona Regional Haze Rules Supplement indicated that further
information on how this SIP revision complied with 40 CFR 51.308(i)
requirements for federal land manager consultation is section 2.4 of
the 2022 Arizona Regional Haze Plan.\90\ However, section 2.4 of the
plan only describes the FLM review of the 2022 Arizona Regional Haze
Plan, and does not specify if ADEQ provided a draft of the three
nonpoint source rules to the FLMs for review. The rules were not
included in the 2022 Arizona Regional Haze Plan. Should Arizona choose
to submit a SIP revision, clarification of the FLM review process of
the nonpoint source rules that are listed in Table 1-1 of the 2023
Arizona Regional Haze Rules Supplement would be helpful for EPA review.
---------------------------------------------------------------------------
\90\ Id, at Chapter 4.
---------------------------------------------------------------------------
C. Comment Letter From the Chamber and AMC
Parts I (``The Chamber and AMC are supportive of the goals of the
Regional Haze Rule'') and III (``Conclusion'') of the Chamber and AMC's
comment letter are informational and therefore do not require a
response. We respond to part II, sections A-E of the Chamber and AMC's
comment letter below.
Comment C.1. The Chamber and AMC note that the EPA's delayed action
and partial disapproval of Arizona's Regional Haze Plan is an example
of erosion of cooperative federalism. The commenter contends that the
timeline of events leading up to the EPA's partial disapproval of
Arizona's Regional Haze Plan is problematic and that the EPA seems to
routinely miss statutory deadlines, only to get sued by third-party
entities for failure to act, resulting in agreements to deadline
extensions that delay action for years. In the meantime, the resources
and analysis invested by states depreciate in value, often requiring
states to reinvest in efforts to update an analysis with new
information. The commenter also asserted that ``[r]egularly, an even
worse scenario plays out in which EPA denies a SIP because the
information submitted in good faith by a state has since become dated
and stale.''
Response C.1. We do not agree that either the timing or substance
of the EPA's partial disapproval of Arizona's Regional Haze Plan is an
example of the erosion of cooperative federalism. We acknowledge that
the EPA did not act on the 2022 Arizona Regional Haze Plan within the
statutory deadline under CAA section 110(k)(3), and that we were
subsequently sued for failing to meet that deadline. This resulted in a
court-ordered deadline for the EPA to take action on the Plan by March
30, 2025.\91\ However, we do not agree that this resulted in a
``deadline extension'' of any sort, or an erosion of cooperative
federalism. On the contrary, in issuing a partial approval and partial
disapproval of the Plan, the EPA is fulfilling our statutorily-mandated
role to review SIPs for compliance with the requirements of the CAA and
the RHR, as further described in Response D.3.
---------------------------------------------------------------------------
\91\ Sierra Club v. EPA (D.D.C. Case No. 1:23-cv-01744-JDB),
Consent Decree entered July 12, 2024.
---------------------------------------------------------------------------
We also disagree with the suggestion that the EPA is disapproving
the 2022 Arizona Regional Haze Plan, partially or entirely because
information became ``dated or stale.'' The comment did not provide
examples of information becoming dated, resulting in disapproval; thus,
we cannot comment on any specific concerns the commenter has with the
information within the 2022 Arizona Regional Haze Plan.
Further, as explained in Responses A.1 EPA staff also discussed
with ADEQ many of the concerns that became bases for our disapproval
during the SIP development process.
[[Page 102757]]
Comment C.2. The Chamber and AMC state that guidance should not be
cited as grounds to disapprove the 2022 Arizona Regional Haze Plan. The
commenter asserts that guidance should be viewed only as a reference
and not a legal requirement to be used to approve or disapprove a
state's plan. The Chamber and AMC also claim that the EPA published
final guidance for Regional Haze Plans three weeks before the plans
were due, making compliance with the guidance practically impossible
before the deadline. The commenter concludes that relying on the
guidance to partially disapprove the Plan was therefore arbitrary and
capricious, and the EPA should withdraw all of the proposed
disapprovals based upon the 2021 Clarifications Memo.
Response C.2. The EPA disagrees that it relied on guidance,
including the 2021 Clarifications Memo, as the basis for our partial
disapproval. See responses A.5, B.1, and B.2.
Comment C.3. The Chamber and AMC assert that Arizona's source
selection methodology was reasonable and that the EPA should give
deference to the State on this matter. The commenter indicates that
sources that applied controls in the first round of Regional Haze had
recently made significant investments in the design, engineering,
procurement, construction and operation of those air pollution control
devices. They note that forcing facilities to consider improvement or
replacement of these air pollution control devices long before they
have depreciated is an unnecessary economic burden for the source and
the State. The Chamber and AMC note that ADEQ chose not to force
additional analysis from these sources and reasonably relied upon
reductions from other emissions sources for visibility improvement, a
method that resulted in all but one of Arizona's Class I areas either
meeting or exceeding the uniform rate of progress (URP) toward natural
conditions.
Response C.3. We disagree that it was reasonable for Arizona to
screen out sources solely because they applied controls during the
first planning period, for the reasons described in section IV.E.2.a.
of our proposal and in response B.3 of this document.
We also disagree that our disapproval will automatically force
sources to consider improving or replacing any recently installed air
pollution devices. Rather, ADEQ has the option to provide additional
documentation and justification for its effective control
determinations in a responsive SIP revision. We anticipate that for
many units that recently installed controls, ADEQ will be able to
provide an adequate demonstration of effective controls on a unit-
specific and pollutant-specific basis, if it chooses to do so, which
would preclude the need for a four-factor analysis for those units and
pollutants. Any affected units and pollutants for which ADEQ is unable
to make such demonstration would be subject to the four-factor analysis
requirement as required by 40 CFR 51.308(f)(2).
Finally, we note that all states are subject to the requirements at
40 CFR 51.308(f)(2) and (3) regardless of whether the 2028 RPGs for
Class I Areas they affect are above or below URP.
Comment C.4. The Chamber and AMC assert that the EPA should give
deference to Arizona's deviation from the EPA Control Cost Manual in
developing cost estimates. The commenter notes that the Cost Control
Manual is not accurate for all sources and cites examples such as
variable interest and emissions rates. They conclude that the use of
different interest rates and different control efficiencies for
different projects should be viewed as reasonable.
Response C.4. We do not agree that we should have deferred to
Arizona's deviation from the EPA Control Cost Manual in the absence of
adequate justification. As discussed in Response D.3, Congress charged
the EPA with independently evaluating and reviewing SIP submissions for
compliance with the applicable requirements under the CAA. 40 CFR
51.308(f)(2)(iii) requires states to ``document the technical basis,
including modeling, monitoring, cost, engineering, and emissions
information, on which the State is relying to determine the emission
reduction measures that are necessary to make reasonable progress in
each mandatory Class I Federal area it affects.'' The technical
documentation must include the modeling, monitoring, cost, engineering,
and emissions information on which the state relied to determine the
measures necessary to make reasonable progress. For the reasons noted
in section IV.E.2.b.ii (``Deviations from Cost Control Manual'') of our
proposed rule, we found that Arizona failed to adequately document the
technical basis that it relied upon to determine emissions reduction
measures, as required by 40 CFR 51.308(f)(2)(iii). Specifically, as
explained in our proposal, it is important to use consistent methods in
order to allow for reasoned comparisons between different sources
within a state, and cost analyses in other states.\92\ Therefore, while
our regulations allow for flexibility among various methodologies,
where a state deviates from these methods, it should explain how its
alternative approach is reasonable, appropriate, and consistent with
the regulations and the statutory requirement to make reasonable
progress towards the national goal. Arizona did not do so. We therefore
disagree that the EPA should give deference to Arizona's approach in
the Plan.
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\92\ 89 FR 47398, 47428-47429.
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Comment C.5. The Chamber and AMC indicate that Arizona's plan
should be viewed in the context that it results in all but one monitor
having an RPG that provides for a greater rate of visibility
improvement than the adjusted URP. The commenter asserts that Arizona
has created a plan that meets or exceeds the URP at all monitors except
for Sycamore Canyon, which was moved to an intersection of two dirt
roads in 2014. The commenter concludes that the fact that visibility at
Arizona's Class I areas is improving at a pace to reach natural
conditions prior to the RHR goal of 2064 is important context in
evaluating the source selection methodology and other decisions made by
Arizona.
Response C.5. We do not agree with the commenter's characterization
of the role of the URP. As explained in our proposal:
The URP is a planning metric used to gauge the amount of
progress made thus far and the amount left before reaching natural
visibility conditions. However, the URP is not based on
consideration of the four statutory factors and therefore cannot
answer the question of whether the amount of progress being made in
any particular implementation period is ``reasonable progress.''
\93\
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\93\ 89 FR 47398, 47406.
Moreover, being on or below the URP does not exempt a state from
any of the requirements of the CAA or the Regional Haze Rule.\94\
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\94\ See 82 FR 3078,3093 and 3099-3100.
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It should also be noted that the URP represents the amount of
visibility improvement that would need to be achieved during each
implementation period to achieve natural visibility conditions by the
end of 2064. However, the 2064 date is used solely to calculate the URP
as a tracking metric. The CAA and RHR do not contain any end dates for
the regional haze program and do not have a ``goal'' or requirement to
achieve natural conditions by 2064 specifically.
Please also see Response B.9 for more information on the robust
[[Page 102758]]
demonstration required for Sycamore Canyon under 40 CFR
51.308(f)(3)(ii), which is missing from Arizona's submission.
D. Comment Letter From TEP
The ``Background'' section of TEP's comment letter is informational
and therefore does not require a response. We respond to the ``Comments
of Proposed Disapproval'' section of TEP's comment letter below.
Comment D.1. TEP claims that ADEQ's source selection methodology
was reasonable and the EPA should approve the determination. First, TEP
cites to the 2019 Guidance and 2021 Clarifications Memo as providing
states discretion for source selection and notes that ADEQ applied a Q/
d screening threshold of 10 for each process at a source. TEP further
describes ADEQ's screening out processes where the facility recently
adopted ``effective controls,'' which the Agency defined as controls
installed to meet the requirements of the PSD program (BACT), the first
regional haze planning period (BART), or other NAAQS requirements.
Second, TEP further suggests that the EPA is proposing to approve
``many aspects of ADEQ's source selection process,'' including ADEQ's
choice of screening threshold and focus on NOX,
SO2, and PM10 in evaluating visibility impacts,
but simultaneously proposing to find that the State did not adequately
justify its determination of effective emissions reduction measures.
Response D.1. First, we disagree with the commenter that ADEQ
applied a Q/d screening threshold of 10 for each process at a source.
As noted in the 2022 Arizona Regional Haze Plan, the Q value was
calculated from facility-wide PM10, NOX, and
SO2 annual emissions, not process-specific emissions.\95\
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\95\ 2022 Arizona Regional Haze Plan, Appendix C2.2, p. 26.
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Second, we clarify that the EPA did not propose to approve ``many
aspects of ADEQ's source selection process.'' We found that ADEQ
reasonably and adequately explained and documented many aspects of its
source selection process, such as its focus on sulfate, nitrate, and
coarse mass and its use of a Q/d value of 10 for point sources.
However, we are not separately approving or disapproving specific
elements of ADEQ's long-term strategy, including any elements of the
source-selection process. Rather, we are disapproving the long-term
strategy as a whole under 40 CFR 51.308(f)(2), for the reasons
described in our proposal and in this document.
Comment D.2. TEP asserts that ADEQ reasonably evaluated existing
controls at IGS Unit 4 and SGS Units 3 and 4.
First, the commenter states that ADEQ did not determine that
sources were effectively controlled based on BART controls alone, but
also evaluated additional emissions reduction measures at several units
that were controlled during the first regional haze planning period,
citing Table 8-2 in the 2022 Arizona Regional Haze Plan. For IGS Unit 4
specifically, the commenter states that ADEQ evaluated existing
emissions reduction measures at IGS Unit 4 from a source-specific
perspective, and determined that further analysis would be futile. TEP
cites to statements regarding post-combustion controls in the 2019
Guidance and states that, in a recent FIP action for Arizona, the EPA
determined that eliminating coal combustion at Unit 4 would control
emissions beyond the best available NOX and SO2
controls.\96\ TEP concludes that these emissions reduction measures
remain the best available controls at this unit in the second planning
period. TEP further notes that ADEQ's determination that IGS Unit 4 is
well-controlled is also consistent with recent decreasing emissions
trends across BART-eligible EGUs, including IGS Unit 4, and between
2014 and 2019. TEP points to the recent proposed rule for Georgia's
Regional Haze SIP,\97\ and comments that the EPA cited to similar
visibility-impairing emissions trends as support for Georgia's source-
selection methodology. Citing to the 2021 Clarifications Memo,\98\ TEP
also indicates that ADEQ was not required to consider emissions trends
and that the State has discretion to emphasize other considerations,
such as the EPA's prior FIP evaluation.
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\96\ 79 FR 52420, 52422.
\97\ 89 FR 47481 (June 3, 2024).
\98\ Specifically, TEP quotes page 3 of the 2021 Clarifications
Memo (``[t]he [Regional Haze Rule] does not explicitly list factors
that states must or may not consider when selecting sources for
analysis,'') and cites page 5 of the 2021 Clarifications Memo as
supporting its assertion that ``EPA has recommended that states
consider projected and actual emissions in evaluating existing
emission reduction measures.''
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Second, TEP states that the EPA's proposed disapproval fails to
engage with ADEQ's analysis for SGS Unit 3 and 4. TEP notes that ADEQ
considered potential additional control measures that could be used to
achieve emissions reductions at SGS Units 3 and 4 based on an initial
control analysis submitted by TEP.\99\ In this analysis, TEP provided
information on technically feasible control measures, as well as the
actual and projected emissions rates at each unit.
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\99\ TEP, Identification and Evaluation of Emission Control
Measures for Units 3 and 4 at the Springerville Generating Station
for Purposes of the Regional Haze Second Planning Period Under 40
CFR 51.308(f)(2) (Mar. 2020), available at https://static.azdeq.gov/aqd/haze/tep_spr_4fa_u34.pdf.
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Response D.2. We disagree that ADEQ's evaluations regarding
effective controls at IGS Unit 4 and SGS Units 3 and 4 were reasonable
and justified. Contrary to TEP's claim, ADEQ did not evaluate
additional emissions reduction measures at several units that were
controlled during the first regional haze planning period. Table 8-2
cited by TEP to support its claim that ADEQ evaluated additional
emissions reduction measures at units that were controlled during the
first regional haze planning period only depicts annual, source-level
total emissions of NOX, SO2 and PM10
and does not include any information regarding unit-specific or
pollutant specific emissions rates or controls. The commenter also
provides no citation for its assertion that ADEQ evaluated existing
emissions reduction measures at IGS Unit 4 from a source-specific
perspective. Therefore, based on the contents of the 2022 Arizona
Regional Haze Plan, it was reasonable for the EPA to determine that
ADEQ did not evaluate additional emissions reduction measures at units
that were controlled during the first regional haze planning period.
Similarly, the commenter's citation to the discussion of post-
combustion controls in the 2019 Guidance is misleading because no such
controls were installed at IGS Unit 4. Rather, the unit was converted
from coal to gas as part of a ``better-than-BART'' determination
pursuant to 40 CFR 51.308(e)(2).\100\ Therefore, the actual relevant
effective controls discussion in the 2019 Guidance is the discussion of
fuel combustion units that are required to burn pipeline quality
natural gas. Such units are generally considered to be effectively
controlled for SO2 and PM.\101\ However, they are not
necessarily effectively controlled for NOX. Therefore, we
disagree with the commenter that, given TEP's recent conversion of IGS
Unit 4 from coal to natural gas, ADEQ's conclusion that further
analysis was not required was reasonable. As stated in the proposed
rule,\102\ ADEQ should have explained why it is reasonable to assume,
without conducting a four-factor analysis, that no additional
NOX controls would be reasonable.\103\
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\100\ See 40 CFR 52.145(j)(4).
\101\ See 2019 Guidance, p. 24.
\102\ 89 FR 47398, 47428.
\103\ See 40 CFR 51.308(f)(2)(i) (``. . .The State must include
in its implementation plan a description of the criteria is used to
determine which sources or groups of sources it evaluated and how
the four factors were taken into consideration in selecting the
measures for inclusion in its long-term strategy.''). See also 2021
Clarifications Memo, p. 5; 2019 Guidance, p. 23.
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[[Page 102759]]
The commenter's discussion of emissions trends is also misleading
on several grounds. First, the commenter mischaracterizes the EPA's
review of Georgia's regional haze source selection methodology. In the
section of the Georgia proposal cited by TEP, the EPA considered trends
in total measured visibility impairment at three Class I areas affected
by Georgia's sources as supporting the reasonableness of the state's
overall source selection methodology.\104\ The EPA did not, however,
consider trends in emissions from specific sources and did not indicate
that such trends would be relevant either to the reasonableness of a
state's overall source selection methodology or especially to the
question of a whether a particular source may be screened out on the
grounds that it is ``effectively controlled.'' Furthermore, the trends
cited by the commenter were for multiple BART-eligible EGUs, not just
IGS. Therefore, we do not agree that decreasing SO2 and
NOX emissions at BART-eligible EGUs in Arizona between 2014
and 2019 are relevant to whether IGS Unit 4 is effectively controlled.
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\104\ 89 FR 47481, 47497-47498.
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Second, the commenter mischaracterizes the contents of the 2021
Clarifications Memo as it relates to how to determine whether a source
is effectively controlled. The first section cited by the commenter,
regarding ``Factors to Consider for Source Selection'' \105\ relates to
a State's overall source selection methodology, which is generally
considered to be the first step of determining what measures are
necessary for reasonable progress.\106\ Whether and how to screen out
particular sources on the grounds that they are effectively controlled
is a subsequent step. As previously noted, we found that many aspects
of ADEQ's source selection process were reasonable and adequately
explained and documented,\107\ consistent with the statement in the
Clarifications Memo that, ``whatever choices states make should be
reasonably explained and produce a reasonable outcome.'' \108\ However,
once the sources were initially selected for evaluation of additional
control measures, we found that ADEQ did not provide an adequate
justification for subsequently screening out certain sources and units
from ultimately conducting a four-factor analysis on the basis that
they are effectively controlled.
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\105\ 2021 Clarifications Memo, p. 3.
\106\ Id. (``Source selection is a critical step in states'
analytical processes. All subsequent determinations of what
constitutes reasonable progress flow from states' initial decisions
regarding the universe of pollutants and sources they will consider
for the second planning period.'')
\107\ 89 FR 47428.
\108\ 2021 Clarifications Memo, p. 3.
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The second section of the 2021 Clarifications Memo mischaracterized
by the commenter, ``Sources that are Not Selected Based on Existing
Effective Controls,'' does address the screening out of particular
sources on the grounds that they are effectively controlled. In
particular, this section recommends that, ``States should first assess
whether the source in question already operates an `effective control'
as described in the August 2019 Guidance. They should further consider
information specific to the source, including recent actual and
projected emission rates, to determine if the source could reasonably
attain a lower rate.'' \109\ For the reasons detailed in our proposal
and elsewhere in this document, we find that ADEQ did not reasonably
explain and support its determination at the first step that IGS Unit 4
already operates effective controls, particularly for NOX.
Moreover, even if IGS Unit 4 does have effective controls, ADEQ should
have considered recent actual and projected emissions rates for this
particular unit, not for all BART-eligible units as a group, in order
to determine whether these controls are necessary to make reasonable
progress.
---------------------------------------------------------------------------
\109\ Id., p. 5 (emphasis added).
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Finally, we disagree that our proposed disapproval fails to engage
with ADEQ's analysis for SGS Unit 3 and 4. Contrary to the commenter's
suggestion, ADEQ did not screen out SGS Units 3 and 4 at the source
selection stage,\110\ but instead conducted four-factor analyses for
these units.\111\ We summarized these analyses on pages 47422-47423 of
our proposal. We did not note any particular flaws in these analyses or
the resulting determinations that no additional controls were necessary
to make reasonable progress in our proposal. However, we found that
ADEQ had not addressed whether any of the existing measures relied upon
in these four-factor analyses were necessary to make reasonable
progress and thus should be a part of the State's long-term strategy
for the second planning period.\112\ We also noted that, as part of its
analysis of whether these existing measures are necessary to make
reasonable progress, the State should have considered whether the
relevant sources are subject to enforceable emissions limits that
ensure their emissions rates will not increase. Without this
information, it is not clear what measures are in the State's long-term
strategy for the second planning period and how controls on these units
result in each of the affected Class I areas making reasonable progress
towards the national goal.
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\110\ 2022 Arizona Regional Haze Plan, Appendix C, Exhibit CI.
\111\ Id., Chapter C3.13.
\112\ 89 FR 47431.
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Comment D.3. TEP asserts that ADEQ reasonably evaluated additional
control measures using a four-factor analysis for SGS Units 1 and 2.
Citing Oklahoma v. EPA, 723 F.3d 1201, 1209 (10th Cir. 2013), the
commenter asserts that while the statute identifies the factors that
must be considered, Congress left to states the determination as to how
these factors should be weighed.
Response D.3. While we agree that states have significant
discretion in how they consider and apply the four statutory factors as
part of a Regional Haze SIP, they do not have unlimited discretion. On
the contrary, the EPA has a crucial role in reviewing such SIP
submissions for compliance with the requirements of the CAA and the
RHR. Pursuant to CAA section 110, states must submit SIP revisions to
the EPA for review and the EPA must evaluate whether each SIP
submission meets all of the applicable requirements of the Act.\113\
The EPA must disapprove any SIP revision that ``would interfere with
any applicable requirement'' of the Act.\114\ CAA section 110(a)(2)(J)
specifically requires that SIPs ``meet the applicable requirements'' of
Part C of Title I of the CAA including the requirements for visibility
protection set forth in sections 169A and 169B.\115\ Pursuant to
section 169A(b), the EPA is required to promulgate visibility
protection regulations that apply to ``each applicable implementation
plan'' (i.e., each SIP or FIP) \116\ for each State containing one or
more Class I areas and each State ``emissions from which may reasonably
be anticipated to cause or contribute to any impairment of
[[Page 102760]]
visibility in any [Class I area].'' The CAA specifies that these
regulations (including the RHR) must require each such SIP or FIP to
``contain such emission limits, schedules of compliance and other
measures as may be necessary to make reasonable progress toward meeting
the national goal.'' \117\ Thus, the statute provides the EPA a key
oversight role in reviewing SIPs, including regional haze SIPs, and the
``EPA has substantive authority to assure that a state's proposals
comply with the Act, not simply the ministerial authority to assure
that the state has made some determination.'' \118\
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\113\ CAA section 110(a)(1), (k)(3), 42 U.S.C. 7410(a)(1) and
(k)(3).
\114\ CAA section 110(l), 42 U.S.C. 7410(l).
\115\ CAA sections 110(a)(2)(J), 169A and 169B 42 U.S.C.
7410(a)(2)(J), 7491 and 7492.
\116\ Under the CAA, ``applicable implementation plan'' is
defined as ``the portion (or portions) of the implementation plan,
or most recent revision thereof, which has been approved under [CAA
section 110], or promulgated under [CAA section 110](c) . . . and
which implements the relevant requirements of [the CAA].'' CAA
section 302(q), 42 U.S.C. 7602(q). In other words, an ``applicable
implementation plan'' is an EPA-approved SIP or Tribal
Implementation Plan, or an EPA-promulgated FIP.
\117\ 42 U.S.C. 7491(b)(2).
\118\ Arizona ex. rel. Darwin v. EPA, 815 F.3d 519, 531 (9th
Cir. 2016).
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Nothing in the Oklahoma case cited by the commenter undermines this
authority. On the contrary, the Oklahoma court upheld the EPA's
disapproval of BART determinations that were part of a regional haze
SIP, noting BART ``does not differ from other parts of the CAA--states
have the ability to create SIPs, but they are subject to EPA review.''
\119\ Likewise, all regional haze SIPs are subject to EPA review, as
described in the preceding paragraph.
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\119\ Oklahoma v. EPA, 723 F.3d 1201, 1209 (10th Cir. 2013).
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In our action on the Plan, we are exercising our substantive
authority to review the state's submittal for compliance with the
applicable requirements of the CAA and RHR. Based on our review of the
Plan, we find, among other things, that ADEQ had not reasonably
evaluated and weighed the four statutory factors for SGS Units 1 and 2
for the reasons noted in section IV.E.2 of our proposal and responses
B.4., B.6, B.7 and B.8 of this document.
Comment D.4. TEP states that ADEQ's choice of cost-effectiveness
threshold was reasonable, and that the EPA's proposed rule did not
afford appropriate deference to ADEQ's assessment of reasonable cost-
effectiveness values. TEP also cites a previous EPA action stating that
``Congress did not provide any direction as to how states should
consider `the costs of compliance' when determining reasonable
progress.'' \120\ TEP also provides the following reasons for why it
believes ADEQ's choice of cost-effectiveness threshold was reasonable.
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\120\ 81 FR 296, 310 (January 5, 2016).
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First, TEP states that ADEQ selected a threshold based on the
State's evaluation of the highest cost controls during the first
planning period. TEP notes that this threshold is nearly $1,000/ton
higher than the 98th percentile value for EGU boilers during the first
planning period and $1,500/ton higher than costs rejected by Georgia in
evaluating additional emissions reduction measures in its SIP
submission.\121\
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\121\ 89 FR 47494.
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Second, TEP claims that ADEQ's bright-line approach to analyzing
available controls above its cost-effectiveness threshold was also
reasonable. TEP disagrees with the EPA's concern about the average cost
of installing SNCR at SGS Unit 2 being $269/ton above ADEQ's $6,500/ton
threshold.\122\ TEP states that the 2019 Guidance emphasized that the
RHR does not prevent states from implementing ``bright line'' cost-
effectiveness thresholds when considering additional control measures,
consistent with the Ninth Circuit's decision in NPCA v. EPA.\123\ TEP
asserts that this threshold sets an amount above which a state would
reject control options as too expensive, and that for controls falling
below this threshold, it is reasonable for ADEQ to evaluate additional
factors, such as incremental costs, visibility impacts, and the other
statutory factors, in determining whether these controls are necessary
for reasonable progress.
---------------------------------------------------------------------------
\122\ 89 FR 47429.
\123\ 2019 Guidance at 38 (citing NPCA v. EPA, 788 F.3d 1134,
1142-43 (9th Cir. 2015)).
---------------------------------------------------------------------------
Response D.4. As TEP describes, the EPA noted in prior rulemakings
that ``Congress did not provide any direction as to how states should
consider `the costs of compliance' when determining reasonable
progress.'' However, consistent with our prescribed statutory role, as
described in Response D.3, the EPA is required to evaluate whether each
State exercised its flexibility and conducted the required analyses in
a reasonable way and in accordance with the applicable requirements. As
described throughout our proposal and this final action, we determined
that Arizona did not do so.
For example, contrary to TEP's claim, the EPA did not find that
ADEQ's average cost-effectiveness thresholds of $6,500/ton for point
sources and $5,000/ton for nonpoint sources were unreasonable. Rather,
as explained in our proposal, we found that the State inconsistently
and unreasonably applied these cost thresholds to the control
determinations.\124\
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\124\ 89 FR 47398, 47429.
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In particular, we found that ADEQ incorrectly characterized its
average cost effectiveness threshold for points sources as a bright-
line threshold,\125\ given that ADEQ, in fact, rejected controls that
were below this threshold. In these instances, ADEQ relied on
incremental cost effectiveness as a basis to find the cost of control
excessive, but, again, did not do so consistently, as described in
Response B.6 of this document. Thus, ADEQ did not consistently apply
either its chosen average cost effectiveness threshold or any defined
incremental cost effectiveness threshold as a basis to choose whether
to adopt or reject control measures, nor did it explain its reasoning
for these inconsistencies. The EPA finds this to be unreasonable. Based
on this and other flaws in the long-term strategy described in the
proposal and elsewhere in this document, we find that the long-term
strategy in the Plan did not meet the requirements of 40 CFR
51.308(f)(2).
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\125\ See 2022 Arizona Regional Plan, Appendix K, p. 7.
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We also note that, while our proposed rule recommended that ADEQ
revisit control determinations with controls that were slightly above
the cost thresholds, given the flaws in the cost-effectiveness
analyses, we did not indicate that, in the absence of such flaws, use
of a bright line threshold would have been improper, as long it was
appropriately justified and consistently applied. Finally, we note that
the fact that other states have applied lower or similar thresholds
does not automatically make Arizona's threshold reasonable.
Comment D.5. TEP states that ADEQ's evaluation of control costs is
conservative and results in projected costs that are lower than what
TEP would incur. TEP asserts that ADEQ selected baseline assumptions
consistent with the EPA's Control Cost Manual. In particular, TEP
indicates that ADEQ calculated control costs using an assumed interest
rate of 4.75 percent and a maximum equipment life of 30 years, but that
these assumptions resulted in unrealistically low control cost
estimates. TEP noted that the EPA previously used 20-year equipment
life and 7 percent interest rate for both NOX and
SO2 candidate emissions reduction measures for IGS as part
of a previous regional haze FIP,\126\ and that these assumed values of
7 percent and 20 years better reflect actual control costs.
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\126\ 79 FR 9318.
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TEP also asserted that ADEQ is not required to treat the guidance
provided by the Control Cost Manual as dispositive, and, citing Wyoming
v. EPA, 78 F.4th 1171, 1180 (10th Cir. 2023), TEP asserted that the EPA
cannot treat nonbinding guidelines as mandatory in evaluating a SIP
submission.\88\
[[Page 102761]]
Response D.5 We do not agree that ADEQ's evaluation of costs was
conservative and results in projected costs that are lower than what
TEP would incur. Regarding the EPA's previous analyses for IGS, first,
we note that the EPA has revised several chapters of the Control Cost
Manual, since the 2014 regional haze FIP cited by TEP in the comment
letter. In particular, the chapter concerning SCR was updated in
2019.\127\ As part of that update, the remaining useful life for SCR
was revised from 20 years to 30 years.\128\ Consistent with this
change, ADEQ used a remaining useful life of 30 years for SCR, but used
20 years for SNCR.\129\
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\127\ Control Cost Manual, Section 4, Chapter 2 Selective
Catalytic Reduction (June 2019), section, 2.4.2 Total Annual Costs,
Indirect costs, available at https://www.epa.gov/sites/default/files/2017-12/documents/scrcostmanualchapter7thedition_2016revisions2017.pdf.
\128\ Id. at page 87 of 107 (PDF document pagination), (``a
representative value of the equipment life for SCR at power plants
can be considered as 30 years'').
\129\ Id., Appendix C, p. 219 (``The estimated life for SCR and
SNCR were set at 30 and 20 years respectively to match current EPA
guidance for these control technologies on utility boilers.'') The
commenter's citation to page 146 of the Plan appears to be in error,
as there is no such page in the main body of the Plan, and page 146
of Appendix C discusses the Willcox compressor station.
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Second, as explained in the Control Cost Manual,\130\ interest
rates change with time due to changes in prices over time for all
relevant goods and services such as capital equipment, engineering
services, other materials and reagents used in the construction and
operation of control equipment. In the absence of source-specific
information, ADEQ relied on a 4.75 percent interest rate developed by
analyzing and averaging historical bank prime rate data. ADEQ looked at
3-year average bank prime rates for the periods of 2017-2019 (4.83
percent) and April 2018-March 2020 (4.78 percent). These dates were
chosen as they were the most recent data at the time of the
analysis.\131\ In contrast, ADEQ also explained in its SIP submittal
that the 7 percent interest rate from the first planning period FIP
cited by TEP was the 3-year average bank prime rate during 2005-
2007.\132\ Therefore, the 7 percent rate used by the EPA in our
previous FIP was not appropriate for the cost analysis for the Plan,
which was developed in 2020-2022.
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\130\ Control Cost Manual, Section 4, Chapters 1 and 2,
available at https://www.epa.gov/economic-and-cost-analysis-air-pollution-regulations/cost-reports-and-guidance-air-pollution.
\131\ 2022 Arizona Regional Haze Plan, Chapter 8.3.2.
\132\ Id.
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Finally, we disagree with the commenter's suggestion that we
treated the Control Cost Manual, or any other guidance, as binding. As
discussed in Responses A.3 and C.4, the EPA's citations to guidance
documents were intended to provide further context on what is generally
considered to be a reasonable approach to fulfill the statutory and
regulatory requirements. We acknowledge that the suggestions in those
guidance documents are not binding, but are generally assumed to be
reasonable. States can deviate from the suggestions within EPA guidance
documents. However, they must do so in a reasonable way, accompanied by
sufficient justification. The Plan did not do so for the reasons
described in our proposal and elsewhere in this document.
Comment D.6. TEP asserts that ADEQ's analysis of SCR and SNCR
reasonably approximated emissions limits achievable at SGS Units 1 and
2. TEP explains that the emissions rate used in the analysis was unit-
specific, and that ADEQ considered baseline NOX emissions,
inlet concentrations, and the frequency of startup/shutdown cycles at
SGS Units 1 and 2. TEP reiterates that ADEQ explained that a higher
number of startup/shutdown cycles results in higher average
NOX emissions rates with SCR, and that SGS Units 1 and 2
experience a higher frequency of startup/shutdown cycles than average
EGUs.
TEP further disagrees that SGS Units 1 and 2 are able to achieve an
emissions rate of 0.05 lb/MMBtu. TEP notes that ADEQ further explained
in its response to public comments that it was inappropriate to use an
annual emissions limit of 0.05 lb/MMBtu because the CAMPD database only
contains three comparable units, out of fifty-eight units, which are
operating below this emissions limit in 2019-2021. The CAMPD database
shows that approximately 20% of the units achieved emissions below 0.06
lb/MMBtu in 2019-2021, which ADEQ believed was a reasonable estimate of
the rate achievable with SCR for SGS Units 1 and 2. TEP also notes that
based on their extensive industry experience, vendors will not
guarantee a rate of 0.05 lb/MMBtu due to concerns about degradation
over time.
TEP also states that even if ADEQ adopted the EPA's preferred
emissions rate of 0.05 lb/MMBtu, ADEQ's analysis of control measures
for SGS Units 1 and 2 would remain substantially the same. Table 3 of
TEP's comment letter provides the updated cost-effectiveness value
using a 0.05 lb/MMBtu rate for SGS Units 1 and 2, assuming a 4.75
percent interest rate and a remaining useful life of 30 years.
Response D.6. We do not agree that ADEQ's analysis of SCR and SNCR
reasonably approximated emissions limits achievable at SGS Units 1 and
2. Our proposed rule acknowledged the startup/shutdown considerations
noted by ADEQ.\133\ However, the proposed rule also explains that ADEQ
has not demonstrated why these startup/shutdown considerations would be
significant enough at SGS Units 1 and 2 on an annual average basis,
which is the averaging period used to calculate ton/year emissions
reductions for cost effectiveness calculations, to preclude them from
achieving this emissions reduction level with SCR. As discussed in more
detail in Response B.4, we would consider it appropriate for an
emissions limitation established on a shorter averaging period to have
a higher value to account for startup/shutdown emissions, which have a
greater effect on overall unit emissions rates over shorter averaging
periods.
---------------------------------------------------------------------------
\133\ 89 FR 47398, 47428.
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We also disagree with TEP that ADEQ's review of emissions rates for
other tangentially fired coal units in CAMPD should be determinative of
the SCR emissions rate achievable for the SGS units. We do not
necessarily consider the inventory of unit emissions data in CAMPD to
be representative of what is achievable with SCR technology because
units whose emissions are included in CAMPD have been required to
install SCR as a result of a variety of regulatory programs. Not all of
these programs may have fully considered technological factors in
establishing emissions requirements or allowable emissions limits,
which would have the effect of elevating reported emissions rates. For
example, several units in the eastern U.S. have installed SCR but have
not been required to operate in a manner that fully accounts for
periods of startup operations,\134\ while other units may only operate
their SCR systems seasonally.\135\ Other SCR systems may have been
required by a Consent Decree, which involves a
[[Page 102762]]
negotiated settlement in which allowable emissions limits may be
established as part of injunctive relief, and may not necessarily be
representative of SCR technical capabilities. Therefore, we find that
ADEQ's analysis of other tangentially fired coal units in CAMPD is not
determinative of the SCR emissions rate achievable for the SGS units.
---------------------------------------------------------------------------
\134\ 87 FR 31798 (May 25, 2022) and Docket Item EPA-R03-OAR-
2022-0347-0059 for further details.
\135\ Docket Items EPA-HQ-OAR-2021-0668-0115 and EPA-HQ-OAR-
2021-0668-0096 examine ozone season data from several mid-atlantic
states and identifies best performing months for several units. An
examination of operating data on a monthly or daily basis over the
course of a calendar year indicates that several units, such as
Pleasants Power Station 1 and 2 (WV), Conemaugh 2 (PA), and DB
Wilson W1 (KY) operate at much lower NOX emission rates
during ozone season months.
---------------------------------------------------------------------------
Finally, though we appreciate the summary provided in Table 3 of
the comment letter, the analysis is new information not included in the
Plan. This information would need to be part of a SIP revision subject
to review by the public and FLMs in order for the EPA to consider it as
part of the long-term strategy.
Comment D.7. TEP asserts that ADEQ reasonably determined that
SO2 emissions limits were an appropriate and equivalent
control measure compared to SDA upgrades. TEP notes that while the EPA
suggests that TEP should also be required to install the SDA upgrades
in addition to the mass-based limits, the EPA does not explain why SDA
upgrades would achieve emissions reductions beyond the mass-based
limits adopted by TEP, which are equivalent to SDA upgrades.
Further, TEP states that the selection of emissions limits is
consistent with the CAA and is entitled to deference. First, TEP
reasons that the CAA does not require the installation of specific
control technologies, and that the EPA has recognized in the 2019
Guidance that mass-based limits may be a reasonable alternative to
specific control technologies, particularly where fixed capital costs
are high, so long as such limits do not enable a source to cease
operating an existing control technology. Second, TEP asserts that the
emissions limits are equally or more protective than control
technologies because the total SO2 emitted cannot exceed the
caps, and whether one or both units is operating is irrelevant, and
because it provides the flexibility for greater total emissions
reductions to occur, should TEP ultimately retire SGS Unit 1 in 2027.
The commenter specifies that if TEP elects to achieve compliance with
the proposed caps by shutting down Unit 1, it is projected to reduce
SO2 emissions by 2,982 tpy and achieve significant
reductions in NOX and PM emissions, whereas the installation
of SDA upgrades at both units is projected to reduce SO2
emissions by 2,122 tpy. Third, TEP asserts that the emissions limits
are consistent with EPA precedent. TEP listed previous examples of EPA-
approved mass-based emissions limits, such as the Hawaii Regional Haze
FIP for three Hawaiian Electric facilities \136\ and the Regional Haze
FIP for PCC.\137\
---------------------------------------------------------------------------
\136\ 77 FR 61478 (October 9, 2012).
\137\ 79 FR 52420.
---------------------------------------------------------------------------
Response D.7. We disagree with TEP's assertions that the selection
of mass-based SO2 emissions limits for SGS Units 1 and 2 was
reasonable for the reasons described in Section IV.E.2.c.iii of our
proposal,\138\ and Response B.8 of this document.
---------------------------------------------------------------------------
\138\ 89 FR 47398, 47430-47431.
---------------------------------------------------------------------------
We also disagree with TEP's assertion that the EPA did not explain
why SDA upgrades would achieve emissions reductions beyond the mass-
based limits adopted by ADEQ. As stated in the proposed rule,\139\
because the limits are set across two units and the ton per day (tpd)
limit is based on a 30-calendar-day average (rather than a 30-day-
boiler-operating day average),\140\ they would not meaningfully
constrain the emissions from one unit during periods when the other
unit is not operating. In particular, the annual SO2 cap of
3,739 tpy is significantly higher than ADEQ's projected 2028
SO2 emissions for either Unit 1 or Unit 2 (2,869 and 2,982
tpy, respectively) \141\ and nearly double each unit's recent emissions
(1,980 and 1,988 tpy respectively on average 2021-2023).\142\
Accordingly, if TEP shuts down SGS Unit 1 by 2028, as it has stated it
intends to do,\143\ Unit 2 would be able to emit 3,739 tpy
SO2 in 2028, nearly double what it emitted on average in
2021-2023 and significantly more than the 2,982 tpy it is projected to
emit in the absence of a cap and closure of Unit 1. In contrast, a lb/
MMBtu limit representing SDA upgrades on each unit would ensure
emissions from Unit 2 would be reduced by approximately \1/3\ from
recent emissions levels (i.e., a reduction of roughly 663 tpy) even if
Unit 1 ceases operation. Therefore, under the scenario projected by TEP
to occur in 2028 (i.e., closure of SGS Unit 1), implementation of SDA
upgrades at Unit 2 would achieve significant emissions reductions
beyond the mass-based limits adopted by ADEQ.
---------------------------------------------------------------------------
\139\ Id.
\140\ A limit based on boiler operating days would effectively
exclude days with zero emissions from the calculation of the 30-day
average whereas a limit based on calendar days does not.
\141\ Plan, appendix C, p. 213, Table 83.
\142\ Emissions information can be publicly accessed through the
EPA Clean Air Markets Program data, available at https://campd.epa.gov/.
\143\ As part of its preferred alternative in its 2023
Integrated Resources Plan, p. 56, TEP states that ``Initially, the
units will alternate idling between spring and fall (both seasons
include the adjacent winter months). TEP plans to transition Unit 1
to summer-only operations prior to full retirement at the end of
2027.''
---------------------------------------------------------------------------
We also note that, if SGS Unit 1 does not close and both units
continue operation at roughly the same level as 2021-2023, a lb/MMBtu
limit representing SDA upgrades on each unit would ensure emissions
from both Unit 1 and Unit 2 would be reduced by approximately \1/3\
(i.e., a reduction of roughly 1,323 tpy based on 2021-2023 emissions),
whereas ADEQ's annual cap of 3,739 tpy would only ensure reductions of
229 tpy (i.e., compared to total 2021-2023 annual average emissions of
3,968). Therefore, we expect that lb/MMBtu limits representing SDA
upgrades on each unit would achieve significantly greater emissions
reductions than the two-unit mass-based limits adopted by ADEQ.
For similar reasons, we also do not agree with TEP's statements
that ``the proposed form of the limit is potentially more
environmentally protective than the installation of controls because it
provides the flexibility for greater total emission reductions to
occur, should TEP ultimately retire SGS Unit 1 in 2027'' and that
``[r]equiring the use of air pollution control technology at each unit
individually would foreclose a more environmentally beneficial
compliance option.'' Specifically, TEP incorrectly cites Table 83 as
supporting its assertion that if it ``elects to achieve compliance with
the proposed caps by shutting down Unit 1, it is projected to reduce
SO2 emissions by 2,982 tpy and also to achieve significant
reductions in NOX and PM emissions.'' This mischaracterizes
the content of Table 83, which reflects ADEQ's baseline projection of
emissions at the TEP units, based on emissions and throughput data for
2016, 2018 and 2019.\144\ These values were the starting point for
ADEQ's four-factor analysis and do not represent the projected
emissions of these units following implementation of the emissions caps
and/or the closure of Unit 1. No such projection is included in the
Plan. However, as noted in the preceding paragraph, if TEP shuts down
SGS Unit 1 by 2028, as it has stated it intends to do, Unit 2 could
emit as much as 3,739 tpy SO2 in 2028, nearly double what it
emitted on average in 2021-2023 and significantly more than the 2,982
tpy it is projected to emit in the absence of a cap and closure of Unit
1.
---------------------------------------------------------------------------
\144\ Plan, Appendix C, pp. 212.
---------------------------------------------------------------------------
Third, in response to TEP's claim about EPA precedent, both FIP
actions cited by TEP apply to first planning period requirements and
thus preceded the 2017 revisions to the RHR, which added 40 CFR
51.308(f). Please see Response B.8 for more information
[[Page 102763]]
about PCC. The other precedent cited by ADEQ, a cap on the Hawaiian
Electric sources, was not based solely on a determination that a
particular control measure was necessary to make reasonable progress
under the four statutory factors. Rather, the cap was intended
primarily to ensure that no degradation in visibility conditions would
occur at the affected Class I area during the first or subsequent
planning periods, as required under the RHR.\145\ This was based on
circumstances that were specific to Hawaii in the first planning
period, namely, that no photochemical modeling had been performed for
Hawaii's Class I areas and the EPA set the RPGs for these areas based
on island-specific emissions inventories.\146\ None of these
circumstances apply to Arizona generally, or to SGS Units 1 and 2
specifically, in the second regional haze planning period and thus are
inappropriate to rely upon.
---------------------------------------------------------------------------
\145\ 77 FR 31692, 31712 (May 29, 2012) (``without further
control, emissions of SO2 on the Big Island are projected
to increase by nearly 4% between 2005 and 2018. Therefore,
additional, federally enforceable SO2 reductions are
needed on the Big Island to ensure reasonable progress.'')
\146\ Id. at 31708.
---------------------------------------------------------------------------
Comment D.8. TEP comments that ADEQ reasonably rejected additional
control measures based on the four factors. For remaining useful life
specifically, TEP indicates that a 20-year remaining useful life is
more appropriate for SGS Units 1 and 2 because the shutdowns are
publicly documented in the 2023 IRP. TEP cites the 2021 Clarifications
Memo as stating, ``reasonable bases for projecting that future
emissions will be significantly different than past emissions are
enforceable requirements and energy efficiency, renewable energy, or
other similar programs, where there is a documented commitment to
participate and a verifiable basis for quantifying changes in future
emissions.'' \147\ TEP noted that consistent with this guidance, TEP's
planned retirement of these units significantly shortens the remaining
useful life of any controls and projected emissions reductions, and a
20-year remaining useful life is a reasonable, conservative basis to
analyze cost-effectiveness of additional controls.
---------------------------------------------------------------------------
\147\ 2021 Clarifications Memo, p. 12.
---------------------------------------------------------------------------
Response D.8. We disagree that 20 years is a reasonable remaining
useful life for SGS Units 1 and 2. The portion of the 2021
Clarifications Memo cited by TEP concerns setting emissions limits for
control measures found necessary to make reasonable progress, not
remaining useful life. Therefore, this citation does not support TEP's
assertion. Additionally, the 2019 Guidance and Clarifications Memo
clearly indicate that, under the RHR, where a shutdown date is used to
shorten a source's remaining useful life as part of a reasonable
progress determination, an enforceable requirement to shutdown must be
included in the SIP and/or be federally enforceable.\148\ The potential
shutdowns of SGS Units 1 and 2 are not federally enforceable.
Therefore, they cannot be relied upon to shorten the remaining useful
life of these units. In the absence of an enforceable requirement for
SGS Units 1 and 2 to retire, we do not agree that a 20-year remaining
useful life is reasonable.
---------------------------------------------------------------------------
\148\ 2019 Guidance, p. 34 (citing 40 CFR 51.308(f)(2));
Clarifications Memo, p. 10.
---------------------------------------------------------------------------
Comment D.9. TEP comments that ADEQ reasonably rejected additional
control measures in part by considering incremental costs. TEP noted
that ADEQ determined incremental costs for additional controls would
range from $9,400-13,500/ton, and that even the low end of this range
exceeded similar incremental costs that the EPA determined to be
excessive for sources in Arizona as part of the 2014 BART FIP.\149\
---------------------------------------------------------------------------
\149\ 79 FR 9318, 9341, Table 24 (rejecting DSI based on
incremental costs of $8,576/ton compared to lower sulfur fuel
blend).
---------------------------------------------------------------------------
TEP further states that ADEQ reasonably considered incremental
cost-effectiveness where the cost impacts were not clear due to
uncertainty in the remaining useful life of the additional controls.
Citing American Corn Growers Association vs. EPA, TEP states that it is
reasonable for a state to consider incremental visibility improvements
and other incremental metrics to inform its assessment of whether a
particular control is ``too costly . . . for a particular source.''
\150\ TEP notes that such an assessment does not give ``controlling
weight'' to the cost factor, but rather considers whether, on balance,
it would be unreasonable to require installation of a control,
consistent with the language of CAA section 169A.
---------------------------------------------------------------------------
\150\ American Corn Growers Association v. EPA, 291 F.3d 1, 6-7
(D.C. Cir. 2002).
---------------------------------------------------------------------------
Lastly, TEP asserts that ADEQ reasonably compared the costs of and
emissions reductions achievable with wet FGD and circulating dry
scrubbers (CDS) to the costs of and emissions reductions achievable
with SDA upgrades, even where such upgrades were not required to be
installed. The commenter argues that ADEQ reasonably used SDA upgrades
as a proxy for its mass-based emissions limits, since these limits were
developed based on equivalence with SDA upgrades and the EPA's approach
for Hawaiian Electric.
Response D.9. We disagree that ADEQ's use of incremental cost
effectiveness was reasonable for the reasons explained in Section
IV.E.2.C.IX of our proposal \151\ and Response B.6 of this document. We
also note that, while the commenter refers to ``similar incremental
costs that the EPA determined to be excessive for sources in Arizona as
part of the 2014 BART FIP,'' the accompanying citation refers to only
to a single source, i.e., Nelson Lime Kiln, which is the same source
cited by ADEQ in the Plan.
---------------------------------------------------------------------------
\151\ 89 FR 47398, 47429.
---------------------------------------------------------------------------
We also find that the commenter's citation to American Corn Growers
is inapposite. That decision concerned the EPA's interpretation of the
BART provisions of the CAA and turned on the fact that the CAA includes
the ``the degree in improvement in visibility that would be expected at
each Class I area as a result of imposing BART'' as one of five factors
to be considered in BART determinations.\152\ In contrast, the Act does
not mandate visibility improvement as one of the four factors to be
considered in determining reasonable progress.\153\ As discussed in
Response B.7, ADEQ indicated in its Response to Comments that it did
not consider this factor in its determinations.\154\ Furthermore, even
if ADEQ did consider visibility improvement in making control
determinations for SO2 at SGS Units 1 and 2,\155\ it is
evident that ADEQ did not consider incremental visibility improvement
associated with Wet FGD compared to SDA upgrades. Rather, ADEQ
considered only ``a hypothetical SO2 emission reduction of
3,236 tpy, which is approximately equivalent to 0.08 lb/MMBtu for SGS
Units 1 and 2.'' \156\ This level of reductions does not correspond
either to SDA upgrades or wet FGD, so ADEQ could not possibly have
considered the incremental visibility benefit between the levels of
control. Accordingly, American Corn Growers has no bearing on our
assessment of whether ADEQ's approach to its four factor analyses and
[[Page 102764]]
determinations for SGS Units 1 and 2 were reasonable.
---------------------------------------------------------------------------
\152\ Id. (interpreting CAA section 169A(g)(2)).
\153\ CAA 169A(g)(1).
\154\ 2022 Arizona Regional Haze Plan, Appendix K, p. 9.
\155\ See 2022 Arizona Regional Haze Plan, Appendix C, p. 234
(``small visibility benefits associated with the modeled
SO2 controls supports the determination that CDS and wet
FGD control options are not necessary to make reasonable progress
towards natural visibility at Class I areas during this
implementation period'').
\156\ Id.
---------------------------------------------------------------------------
In addition, we also disagree that there is uncertainty in the
remaining useful life of SGS Units 1 and 2, because the potential
shutdowns at these units are not federally enforceable. See Response
D.8.
Finally, we disagree that ADEQ reasonably used SDA upgrades as a
proxy for its mass-based emissions limits. See Responses B.8 and D.7.
Comment D.10. TEP states that the EPA incorrectly implies that ADEQ
based its control determinations on visibility benefits, when ADEQ
stated otherwise in its SIP submission.\157\
---------------------------------------------------------------------------
\157\ 2022 Arizona Regional Haze Plan, Appendix K at 9
(explaining that visibility information ``was not considered in the
Department's emission control measure determination'').
---------------------------------------------------------------------------
Second, TEP notes that any consideration of visibility would be
consistent with recent EPA actions on regional haze and the text of the
statute. Citing the EPA's recent proposed action on the Georgia
Regional Haze SIP, TEP states that the EPA emphasized incremental
visibility improvements and that ``Georgia is also not contributing to
visibility impairment at any Class I areas above the URP.'' \158\ TEP
claims that because Arizona has similarly de minimis contributions to
visibility impairment at Class I areas,\159\ the EPA cannot apply
inconsistent criteria to its review of SIP submissions by different
states. Finally, citing Loper Bright Enterprises v. Raimondo, 144 S.
Ct. 2244, 2263 (2024), TEP argues that ``EPA's suggestion that
visibility should play little-to-no role in a state's assessment of
reasonable progress is unreasonable and counter to the text of the
statute.''
---------------------------------------------------------------------------
\158\ Citing 89 FR 47481, 47498.
\159\ 89 FR 47398, 47432, Table 21.
---------------------------------------------------------------------------
Response D.10. Regarding whether ADEQ considered visibility
benefits, in its control determinations, please see Response B.7.
We disagree that the EPA is applying inconsistent criteria to
review of SIP submissions by different states. As explained in Response
D.2, in the section of the Georgia action cited by the commenter, the
EPA considered overall trends in visibility impairment in evaluating
the reasonableness of Georgia's source selection methodology. This is
entirely different from weighing the potential visibility benefits of
specific controls at specific units, which is what the commenter
appears to be advocating for. Additionally, the quoted section of the
Georgia proposal simply states as a fact that Georgia is not
contributing to visibility impairment at any Class I areas above the
URP. That information is not used and should not be used as a ``safe
harbor'' argument to exclude contributing sources from a four-factor
analysis and potentially including cost-effective controls in the long-
term strategy.
Moreover, we do not agree that Arizona has de minimis contributions
to visibility impairment at Class I areas. In support of this
assertion, TEP cites Table 21 on page 47432 of the proposal. This table
shows Baseline Conditions, Adjusted URP and 2028 RPGs at Arizona's
Class I areas. However, the table provides no indication of which
sources contribute to visibility impairment at these Class I areas, or
whether these sources are located in Arizona or elsewhere. This table
also does not address any Class I areas outside of Arizona.
Furthermore, there is no other information in the Plan that suggests
that emissions from Arizona have de minimis contributions to visibility
impairment at all potentially affected Class I areas. Therefore, we do
not agree that the EPA is applying inconsistent criteria to review of
SIP submissions by different states.
Finally, we disagree that we suggested that ``visibility should
play little-to-no role in a state's assessment of reasonable
progress.'' Rather, we stated that ``[w]hether a particular visibility
impact is meaningful should be assessed in context and cannot be used
to undermine the four statutory factors that are to be analyzed in
order to determine what measures are necessary for reasonable
progress.'' \160\ Applying these considerations to ADEQ's discussion of
visibility benefits at SGS Units 1 and 2, we found that ``[i]n the
absence of any opportunities for larger emissions reductions and
corresponding visibility benefits, we find that ADEQ's reliance on
`small' visibility benefits as an additional justification for not
adopting more stringent controls at these units is not persuasive.''
\161\ Therefore, we do not agree with the commenter's characterization
of our proposal.
---------------------------------------------------------------------------
\160\ 89 FR 47398, 47430 (citing 40 CFR 51.308(f)(2)(i)).
\161\ Id.
---------------------------------------------------------------------------
Comment D.11. TEP asserts that ADEQ appropriately incorporated
``on-the-way'' measures in assessing baseline conditions at IGS Unit 3.
TEP cites the 2021 Clarifications Memo and states that the EPA has
explicitly recognized ``on-the-way'' measures that ``have not yet been
implemented and the associated emissions reductions have not yet
occurred as of the SIP submission date,'' and that the EPA indicated
that these measures may impact a state's choice of baseline for a four-
factor analysis at a particular source (``reasonable bases for
projecting that future emissions will be significantly different than
past emissions are enforceable requirements and energy efficiency,
renewable energy, or other similar programs, where there is a
documented commitment to participate and a verifiable basis for
quantifying changes in future emissions'').\162\ TEP claims that the
operational conditions at IGS Unit 3 have been incorporated in an
enforceable permit, and will become effective upon approval of
Arizona's SIP submission. TEP also claims that it has a documented
commitment to complying with these limits by requesting these permit
limits.
---------------------------------------------------------------------------
\162\ 2021 Clarifications Memo, pp. 10, 12.
---------------------------------------------------------------------------
Response D.11. TEP mischaracterizes the contents of the 2021
Clarifications Memo. The first section of the memo cited by the
commenter, entitled ``On-the-Way'' Measures and Shutdowns, states that
``on-the-way measures . . . are necessary to make reasonable progress
and must be included in a SIP.'' \163\ In this case, because the IGS
Unit 3 limits have not taken effect under State law, their inclusion as
part of the SIP revision is not meaningful, and they are not an
appropriate basis for modifying the baseline control scenario for a
four-factor analysis.
---------------------------------------------------------------------------
\163\ Id. p. 10.
---------------------------------------------------------------------------
The second portion of the 2021 Clarifications Memo cited by TEP
concerns setting emissions limits for control measures that have been
found necessary to make reasonable progress. It is not relevant to the
question of the extent to which existing measures may be considered as
part of the baseline for a control analysis. Regarding this latter
question, the 2019 Guidance states that:
Enforceable requirements are one reasonable basis for projecting
a change in operating parameters and thus emissions; energy
efficiency, renewable energy, or other such programs where there is
a documented commitment to participate and a verifiable basis for
quantifying any change in future emissions due to operational
changes may be another. A state considering using assumptions about
future operating parameters that are significantly different than
historical operating parameters should consult with its EPA Regional
office.\164\
---------------------------------------------------------------------------
\164\ 2019 Guidance p. 29 (emphases added).
Again, the emissions limits at IGS Unit 3 are not enforceable by
the State or the EPA unless and until the resulting reasonable progress
determination is approved into the SIP. Moreover, the permit conditions
that would implement the caps were adopted specifically to meet
regional
[[Page 102765]]
haze requirements and were not part of ``energy efficiency, renewable
energy, or other such programs.'' \165\ Therefore, we find that they
are not a reasonable basis for projecting a change in operating
parameters.
---------------------------------------------------------------------------
\165\ See, e.g., 2022 Arizona Regional Haze Plan, Appendix C, p.
197 (describing TEP's submittal of permit application for
NOX caps in response to ADEQ's initial regional haze
control determination); Appendix G, p. 58 (``The purpose of the
proposed SIP and significant permit revision is to support ADEQ's
forthcoming periodic comprehensive regional haze SIP submittal to
EPA.'').
---------------------------------------------------------------------------
Comment D.12. TEP asserts that ADEQ reasonably evaluated additional
control measures using a four-factor analysis for IGS Unit 3 based on
excessive costs. TEP explains that each of the NOX controls
available for IGS Unit 3 exceed Arizona's cost threshold of $6,500/ton,
and ADEQ therefore determined that no additional controls were
reasonable for the second planning period. TEP also noted that while
the average cost of installing combustion control retrofits at IGS Unit
3 was only $230/ton above ADEQ's $6,500/ton threshold, the RHR does not
prevent states from implementing ``bright line'' cost-effectiveness
thresholds when considering additional control measures.
Response D.12. We partly agree with this comment. We agree that the
NOX controls analyzed for IGS Unit 3 exceed the cost
threshold of $6,500, when the emissions limits in the permit (which are
not yet in effect) are considered as part of the baseline control
scenario. However, as described in section IV.E.2.c.iii of our
proposal, and Response D.11, we do not agree that these limits are an
appropriate basis for modifying the baseline control scenario for a
four-factor analysis. We also agree the RHR does not prevent states
from implementing ``bright line'' cost-effectiveness thresholds, but we
find that ADEQ did not do so in a reasonable or consistent manner in
the Plan, as discussed in Response D.4.
E. Comment Letter From SRP
Sections I (``Introduction''), II (``Background''), III (``SRP
Facilities Subject to the Proposed Rule'') and IV (``EPA Has
Appropriately Proposed Approval of Several Aspects of Arizona's
Regional Haze SIP'') of SRP's comment letter either provide background
information or are supportive and therefore do not require a response.
We respond to sections V-XI of SRP's comment letter below.
Comment E.1. SRP comments that the proposed rule is vague and
deprives the public of an adequate opportunity for comment. Citing
American Iron & Steel Institute v. EPA, SRP notes that the EPA is
obligated to provide the public with information sufficient to
facilitate public comment on the proposal, and that it is not clear
which grounds for the proposed partial disapproval of the SIP
submission apply to which sources. SRP provides a few examples of
allegedly vague language in the proposed rule, for example, noting
``some'' of Arizona's four-factor analyses were affected in a few
instances. SRP asserts that because it is not clear which aspects of
the EPA's analysis apply to which facilities, the public cannot
reasonably evaluate the grounds for the proposed disapproval actions,
and therefore the EPA needs to issue a new proposed rule that provides
additional necessary detail in support of the proposed actions.
Response E.1. We disagree with this comment. In American Iron &
Steel Institute,\166\ the court denied, in part, review of an EPA
interim final rule due to a lack of proper notice. However, as
described in Response A.1, we do not agree that the proposed rule
deprives the public of an adequate opportunity for comment.
---------------------------------------------------------------------------
\166\ See 568 F.2d 284 (3d Cir.1977), cert. denied, 435 U.S.
914, 98 S.Ct. 1467, 55 L.Ed.2d 505 (1978).
---------------------------------------------------------------------------
We also note that, in acting on the 2022 Arizona Regional Haze
Plan, the EPA is not issuing new requirements applicable to any
emissions sources. Rather, this final partial disapproval establishes a
two-year deadline for the EPA to promulgate a FIP to address the
relevant requirements under CAA section 110(c), unless the EPA approves
a subsequent SIP submission that meets these requirements. Accordingly,
Arizona can develop and submit a SIP revision addressing the
disapproved elements of the Plan. Both the state's adoption of that SIP
revision and the EPA's subsequent action on that SIP revision would be
subject to public notice and comment requirements.\167\ Similarly, if
the EPA does not fully approve a SIP submission addressing the
disapproved elements of the Plan, any FIP promulgated by the EPA would
be subject to public notice and comment. Accordingly, there will be
ample additional opportunities for the public, including potentially
regulated entities, to engage in the rulemaking process before any
additional requirements take effect.
---------------------------------------------------------------------------
\167\ See CAA section 110(l), 40 CFR 40 CFR 51.102, and 5 U.S.C.
553.
---------------------------------------------------------------------------
Comment E.2. SRP asserts that the EPA should approve Arizona's
determination that Coronado Generating Station and SGS Unit 4 are
effectively controlled because they are consistent with the law and EPA
guidance. SRP states that the 2019 Guidance indicates that sources that
have recently installed effective controls are the prime example of
sources that do not require evaluation during the current planning
period. Specifically, SRP notes that the 2019 Guidance states that
BART-eligible units that installed and began operating controls to meet
BART emissions limits for the first implementation period, including
sources that installed controls to comply with a better-than-BART
alternative, may be considered to be effectively controlled.
For Coronado, SRP states that the source is subject to a better-
then-BART alternative that the EPA approved in October 2017, and that
there have been no intervening changes in technology since that time.
SRP states that Coronado will also install new controls (SCR) to comply
with the BART alternative by January 2026.\168\ SRP noted that the
first planning period regional haze SIP submission for Coronado also
includes two additional requirements for SO2: an
SO2 emissions limit of 0.060 lb/MMBtu, calculated on a 30-
boiler-operating-day rolling average and an annual plant-wide
SO2 emissions cap of 1,970 tons per year.
---------------------------------------------------------------------------
\168\ SRP cited in the comment letter, but we note that the
correct citation is 82 FR 46903 (October 10, 2017).
---------------------------------------------------------------------------
SRP further asserts that SGS Unit 4 is similarly well-controlled.
ADEQ determined that Unit 4's existing controls of combustion controls
(LNB+OFA) and SCR is the most effective control technology available
for NOX for coal fired EGUs, and thus, no further analysis
for other control technologies was needed. For SO2, Unit 4
is equipped with SDA systems subject to the MATS rule and has been
achieving an SO2 emissions rate over the most recent five
years ranging from 0.076 to 0.10 lb/MMBtu on an annual basis. For PM,
Unit 4 is equipped with a baghouse, which ADEQ found to have the
highest PM control efficiency of any PM control considered for Unit 4.
Response E.2. Regarding Coronado Generating Station, we agree that
the source was subject to a better-than BART alternative. However, we
note that the commenter mischaracterizes the contents of the 2019
Guidance regarding effective control determinations for BART-eligible
sources. The relevant portion of the Guidance includes as an example of
potentially effective controls, ``BART-eligible units that installed
and began operating controls to meet BART emission limits for the first
implementation period, on a
[[Page 102766]]
pollutant-specific basis.'' \169\ The Guidance further explains that:
---------------------------------------------------------------------------
\169\ See 2019 Guidance, p. 25 (emphasis added).
---------------------------------------------------------------------------
Although the Regional Haze Rule anticipates the re-assessment of
BART-eligible sources under the reasonable progress Rule provisions, if
a source installed and is currently operating controls to meet BART
emission limits, it may be unlikely that there will be further
available reasonable controls for such sources. However, states may not
categorically exclude all BART-eligible sources, or all sources that
installed BART controls, as candidates for selection for analysis of
control measures.
The associated footnote clarifies that this consideration is not
applicable to BART-subject units for which the BART requirement was met
in whole or in part by emissions reductions at other units as part of a
better-than-BART alternative or trading program.\170\
---------------------------------------------------------------------------
\170\ Id., n. 54.
---------------------------------------------------------------------------
As discussed in our proposal and Response B.3 of this document,
ADEQ excluded all units that installed BART (or better-than-BART)
controls between 2014 and 2028 for any pollutant. We therefore disagree
that Arizona followed the 2019 Guidance in evaluating effective
controls because it categorically excluded all such units without
considering whether the unit in question installed effective controls
for NOX, SO2 and PM10, or whether the
BART requirement was met in part by reductions at other units as part
of a better-than-BART alternative.
Regarding SGS Unit 4, see Response D.2.
Comment E.3. SRP states that the EPA's assumed emissions rate for
SCR controls of 0.05 lb/MMBtu is not feasible at coal-fired EGUs. SRP
asserts that the EPA cannot assume all coal-fired units are capable of
the same efficiencies following pollution control installation or that
these controls incur the same costs for each unit nationwide,
irrespective of the local conditions and operations impacting
individual units. SRP further notes that the EPA's conclusion that all
SCR retrofitted units can uniformly meet a NOX emissions
limit of 0.05 lb/MMBtu without proper evaluation and consideration of
individual units is arbitrary and capricious and may unlawfully impose
limits on EGUs that are unachievable. SRP further points out that the
cited Srivastava et al. study notes units that achieved NOX
emissions rates between 0.04 and 0.07 lb/10\6\ Btu, and that this range
illustrates the variability associated with SCR-controlled coal-fired
unit NOX emissions rates and the importance of considering
unit-specific factors when identifying a controlled emissions rate.
Citing Appendix K of the Plan, SRP further asserts that ADEQ
specifically addressed unit-specific considerations when setting the
SGS Unit 1 and 2 NOX emissions rates by reviewing CAMPD
data. By assuming an SCR controlled NOX emissions rate of
0.06 lb/MMBtu, ADEQ is assuming that SGS Units 1 and 2 will achieve a
controlled emissions rate within the top 21 percent of tangentially-
fired EGUs. SRP indicates that without acknowledging ADEQ's evaluation,
the EPA states that ADEQ did not provide adequate justification and
unreasonably assumes an emissions rate within the top 5 percent of SCR
controlled tangentially-fired EGUs is appropriate for the SGS Unit 1
and 2. SRP concludes that while the state made reasonable conclusions
as to the emissions rates achievable by SCR at specific facilities, the
EPA has not.
Response E.3. We disagree that the EPA has assumed that all coal-
fired units are capable of the same efficiencies following pollution
control installation or that these controls incur the same costs for
each unit. As described in Responses B.4 and D.6, we have considered
unit-specific factors in evaluating the emissions rates achievable with
SCR at SGS Units 1 and 2, and we are not aware of any assertions that
SGS specifically cannot achieve 0.050 lb/MMBtu when operating with SCR
during periods of normal operation. Therefore, we find that ADEQ should
have considered a controlled NOX emissions rate of 0.050 lb/
MMBtu for SGS Units 1 and 2 when operating with SCR during periods of
normal operation. As further explained in Response B.4, this does not
mean that 0.050 lb/MMBtu would be an appropriate 30-BOD limit for these
units, but rather that it should be considered as annual emissions rate
for purposes of the control cost analysis.
Comment E.4. SRP comments that it is not necessary to include
control requirements for Coronado Generating Station in Arizona's
Regional Haze SIP. SRP states that under CAA section 169A, a state (or
the EPA) may only require a long-term strategy to include those control
measures that are found to be necessary to make reasonable progress
through the evaluation of the four statutory reasonable progress
factors. SRP claims that the EPA's position that in the absence of a
four-factor analysis supporting new controls, existing controls should
generally be deemed necessary to make reasonable progress and be
included in the regional haze SIP is not a valid reading of the CAA's
visibility provisions. Further, SRP claims that the CAA framework ties
reasonable progress controls to the four-factor analysis, and does not
leave room for the EPA's presumption that existing controls must be
included in a SIP even whenever a four-factor analysis failed to
identify new controls that should be implemented. Such existing
controls may only be deemed necessary components of a regional haze SIP
if a four-factor analysis independently identifies such controls as
necessary for reasonable progress.
SRP further cites both the 2021 Clarifications Memo (``There may be
other cases where, after having conducted robust source selection and
rigorous analysis of the four factors, states have not identified any
new measures that are reasonable to require for a source. In such
cases, states will have to address whether the source's existing
measures are necessary to make reasonable progress'') and 2019
Guidance: (``[i]f a state determines that an in-place emission control
at a source is a measure that is necessary to make reasonable progress
and there is not already an enforceable emission limit corresponding to
that control in the SIP, the state is required to adopt emission limits
based on those controls as part of its long-term strategy in the SIP
via the regional haze second planning period plan submission''). SRP
claims that the EPA therefore acknowledged that there should be no
presumption that existing measures are needed for reasonable progress.
Lastly, SRP states that Coronado Generating Station is already
subject to a source-specific SIP revision that was designed to
implement the better-than-BART alternative during the first planning
period of the regional haze program. SRP asserts that because these
requirements are already binding and enforceable, there is no need for
any additional action to address Coronado.
Response E.4. First, we disagree that existing controls being
necessary for reasonable progress does not have a basis in the statute
for two reasons. First, under CAA 169A(a)(1), the national visibility
goal is generally seperated into two parts: (1) the prevention of any
future, and (2) the remedying of any existing anthropogenic visibility
impairment. As noted in the proposed rule,\171\ and in response B.1,
continued implementation of the source's existing measures is generally
necessary to prevent future emissions increases and thus necessary
[[Page 102767]]
to make reasonable progress towards the national goal.
---------------------------------------------------------------------------
\171\ 89 FR 47398, 47404.
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Second, control measures used to fulfill a CAA requirement must be
in the SIP.\172\ In this instance, in order to make reasonable progress
toward the national goal, the CAA requires every regional haze SIP to
contain ``such emission limits, schedules of compliance, and other
measures as may be necessary for reasonable progress.'' \173\ The CAA
also requires each regional haze SIP submission to include a long-term
strategy ``for making reasonable progress toward meeting the national
goal.'' \174\ Finally, reasonable progress is defined in the CAA as a
consideration of the four factors outlined in CAA 169A(g)(1). If the
State opts to avoid conducting the required consideration of the four
statutory factors on a source or group of sources based solely on the
source's existing measures, then, in order to fulfill its long-term
strategy requirements, those existing measures must also be in the SIP,
or else the state must demonstrate that the existing measures are not
necessary to make reasonable progress. This ensures that this source's
contribution to visibility impairment will not increase, and also
ensures that all measures being relied upon to fulfill the regional
haze requirements are in the SIP. Therefore, if Arizona is relying on
existing measures to avoid the statutorily required four factor
analysis, then those existing measures must be in the SIP and thus a
part of its long-term strategy for the second planning period, unless
the State demonstrates that they are not necessary to make reasonable
progress.
---------------------------------------------------------------------------
\172\ See Committee for a Better Arvin v. EPA, 786 F.3d 1169,
1175-77 (9th Cir. 2015).
\173\ CAA 169A(b)(2).
\174\ CAA 169A(b)(2)(B).
---------------------------------------------------------------------------
Additionally, we disagree that the EPA's guidance documents
acknowledged that there should be no presumption that existing measures
are needed for reasonable progress. The 2021 Clarifications Memo is
clear that, under the CAA and the RHR, ``when the outcome of a four-
factor analysis is that no new measures are reasonable for a source,
the source's existing measures are generally needed to prevent future
visibility impairment (i.e., to prevent future emission increases) and
thus necessary to make reasonable progress.'' \175\ ADEQ did not
provide this analysis of whether existing measures are necessary to
make reasonable progress.
---------------------------------------------------------------------------
\175\ 2021 Clarifications Memo, pp. 8-9 (emphasis added).
---------------------------------------------------------------------------
Finally, while we agree that Coronado Generating Station is already
subject to a source-specific SIP that was designed to implement a
better-than-BART alternative for the first implementation period, we do
not agree that this automatically means, without further justification,
that there is no need for any additional action to Coronado in the
second implementation period for the reasons described in E.2.
Comment E.5. SRP asserts that the EPA should approve Arizona's
control determinations and four-factor analyses with respect to cost-
effectiveness thresholds, incremental costs, compliance with the
Control Cost Manual, and consideration of visibility.
First, regarding cost-effectiveness thresholds, SRP indicates that
Arizona's cost-effectiveness threshold of $6,500/ton is reasonable and
should be approved, along with the control determinations the state
made in reliance on that threshold. SRP noted other examples of cost-
effectiveness thresholds in other states (Georgia and Arkansas) that
are lower than the values Arizona adopted. SRP also cites the EPA's
recent proposal for Missouri that cites a $6,060 to $7,600/ton
threshold from the Central Regional Air Planning Association and Texas
BART FIP threshold range of $5,300/ton to $6,500/ton that is consistent
with the $6,500/ton threshold adopted by Arizona. Therefore, SRP
concludes that ADEQ's threshold is reasonable and represents a
conservatively high threshold from a historical perspective.
Second, regarding incremental costs, SRP asserts that the EPA
provided no rationale for finding ADEQ's approach unreasonable, and
that it was appropriate to only consider incremental costs if a simple
dollar-per-ton analysis suggests a control might be cost-effective in
the absence of more nuanced information. SRP notes that suggesting that
states cannot reasonably take incremental costs into account to reject
control requirements far exceeds the EPA's statutory authority, citing
the court decision in American Corn Growers Association vs. EPA as
stating that ``[t]he Haze Rule calls for states to play the lead role
in designing and implementing regional haze program to clear the air in
national parks and wilderness areas.'' SRP further states that the EPA
states that Arizona considered only a single BART determination in
finding that incremental costs of $9,400-13,500/ton were excessive, but
this value is in line with past EPA actions finding incremental costs
excessive.\176\
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\176\ See, e.g., 79 FR 9318, 9342 (rejecting controls based on
incremental costs of $8,803 and $8,576/ton); 76 FR 80754, 80756
(December 27, 2011) (rejecting controls based on incremental costs
of $5,367/ton).
---------------------------------------------------------------------------
Third, regarding compliance with the Control Cost Manual, SRP
states that the EPA did not provide enough information for the public
to tell what it considers to be the full range of the deviations from
the Cost Control Manual, except for some of the State's remaining
useful life values. SRP asserts that the EPA's rules specifically allow
for deviations from the Manual's methodology and sample calculations
and values whenever site-specific information is more accurate.
Lastly, regarding consideration of visibility, SRP asserts that the
EPA appears to place inappropriate limits on Arizona's consideration of
visibility impacts as part of its assessment of reasonable progress,
and that the State took visibility into account as additional
confirmation that controls were not reasonable. SRP also states that
the EPA has provided no context or analysis for stating that visibility
impacts must be assessed in context to determine if they are truly
meaningful and justify expensive control requirements. SRP points out
that Table 10-5 of the 2022 Arizona Regional Haze Plan shows that
natural visibility is projected to occur at all statewide sites between
2028 and 2056, well ahead 2064 natural conditions. SRP concludes that
Arizona appropriately determined that controls were not reasonable for
SGS when visibility is rapidly improving, costs are over or very near a
reasonable cost threshold, and where visibility improvements from
potential controls would be relatively small.
Response E.5. The EPA disagrees with this comment for a number of
reasons. First, with respect to cost-effectiveness thresholds, the EPA
clarifies that we are not disapproving Arizona's average cost-
effectiveness threshold specifically, but rather, finds that the State
inconsistently applied the threshold and did not adequately justify how
this approach resulted in a reasonable set of control measures in the
long-term strategy for the second planning period. We also note that
the fact that other states have applied lower or similar thresholds
does not automatically make Arizona's threshold reasonable. For further
explanation on this point, see Response D.4.
Second, with respect to incremental costs, contrary to the
commenter's assertion, our proposed rule did not suggest that Arizona
cannot consider incremental costs. However, we reiterate that, if a
state chooses to consider incremental costs, it must do so in a
reasonable and consistent manner and
[[Page 102768]]
that Arizona did not do so in the Plan. See Responses B.6, B.8, and
D.9.
Third, with respect to compliance with the Control Cost Manual, we
note that, in addition to discussing remaining useful life values, we
cited an example of where the State used an interest rate that was
above the then-current prime rate without adequate documentation.\177\
While we agree with the commenter that States can deviate from the Cost
Control Manual's methodology and sample calculations and values
whenever site-specific information is more accurate, ADEQ did not
provide such relevant site-specific documentation. In situations where
an enforceable shutdown date does not exist, the remaining useful life
of a control under consideration should be the full period of the
useful life of that control as recommended by the EPA's Control Cost
Manual.\178\ See Responses A.1 and C.4.
---------------------------------------------------------------------------
\177\ 89 FR 47398, 47429.
\178\ 2019 Guidance, pp. 33-34. See also 40 CFR
51.308(f)(2)(iii) (``The State must document the technical basis,
including modeling, monitoring, cost, engineering, and emissions
information, on which the State is relying to determine the emission
reduction measures that are necessary to make reasonable progress in
each mandatory Class I Federal area it affects'').
---------------------------------------------------------------------------
With respect to consideration of visibility, we disagree that the
EPA has provided no context or analysis for stating that visibility
impacts must be assessed in context. On the contrary, in our proposed
notice, we explained why the evaluation and control of smaller and
better-controlled sources in Arizona may be necessary to achieve the
national goal.\179\ However, we also noted that SGS specifically is by
far the largest emissions source analyzed by ADEQ in the 2022 Arizona
Regional Haze Plan and ADEQ found that Units 3 and 4, as well as Units
1 and 2 for PM10, were effectively controlled, leaving only
NOX and SO2 at Units 1 and 2 as providing an
opportunity for further control at this source.\180\ In addition, we
cited to portions of the 2019 Guidance and Clarifications Memo that
provide additional recommendations to states that visibility
improvements could reasonably be considered in conjunction with a four-
factor analysis. To the extent that the commenter is arguing that the
EPA should have provided our own analysis of visibility impacts, we
disagree. The EPA's role in reviewing SIP submittals is to assess their
compliance with applicable requirements, not to address those
requirements ourselves, as we would be obligated to do in a FIP.
---------------------------------------------------------------------------
\179\ 89 FR 47398, 47430.
\180\ Id.
---------------------------------------------------------------------------
Regarding Table 10-5, we note that this table is based on Arizona's
RPGs, and that contrary to SRP's suggestion, ADEQ did not cite or
discuss this table or otherwise reference its RPGs in making its
control determinations. Furthermore, as explained in our proposal
``[b]ecause RPGs are the modeled result of the measures in states'
long-term strategies (as well as other measures required under the
CAA), they cannot be determined before states have conducted their
four-factor analyses and determined the control measures that are
necessary to make reasonable progress.'' \181\ Accordingly, we do not
agree that Arizona did or should have considered the information in
Table 10-5 in making its control determinations. We also note that the
commenter mischaracterizes the contents of this table, insofar as the
``projected date of natural visibility for SYCA'' is 2089, which is
well after 2064. See also response C.5.
---------------------------------------------------------------------------
\181\ Id. at 47405.
---------------------------------------------------------------------------
In sum, we disagree that Arizona appropriately determined that
controls were not reasonable for SGS for the reasons described in this
response, elsewhere in this document and in our proposal.
Comment E.6. SRP claims that the EPA improperly asserts that
Arizona's SIP must require installation of specific control
technologies, specifically with regards to SDA upgrades at SGS Units 1
and 2. SRP states that the regional haze program has not been used to
impose requirements to install and operate specific technologies, and
that some states have made use of emissions caps rather than emissions
rates and other creative tools to address regional haze requirements,
including Coronado Generating Station during the first planning period.
Response E.6. We agree with the commenter that ADEQ was not
obligated to require installation of a particular control. However, the
State is obligated to set emissions limitations or establish other
measures corresponding to the controls that it determined to be
necessary to make reasonable progress.\182\ See also Response B.8 where
we note issues with ADEQ's provided rationale in justifying the mass-
based emissions caps at SGS and IGS. Finally, we note that the example
of Coronado Generating Station was under the better-than-BART
provisions of 40 CFR 51.308(e)(2), rather than the provisions of 40 CFR
51.308(f), which govern regional haze plans for the second
implementation period.
---------------------------------------------------------------------------
\182\ CAA 169A(b)(2) (``. . . each applicable implementation
plan for a State . . . which may reasonably be anticipated to cause
or contribute to any impairment of visibility . . . [must] contain
such emissions limits, schedules of compliance and other measures as
may be necessary to make reasonable progress[.]''); 40 CFR
51.308(f)(2) (``Each State must submit a long-term strategy that
addresses regional haze visibility impairment . . . the long-term
strategy must include the enforceable emissions limitations . . .
that are necessary to make reasonable progress.''); see also 2021
Clarifications Memo, pp. 8-9.
---------------------------------------------------------------------------
Comment E.7. SRP comments that the EPA's disapproval of 40 CFR
51.308(f)(3)(ii) for the Sycamore Canyon monitor fails to acknowledge
or address critical monitoring deficiencies. SRP noted that ADEQ's
determination that monitor irregularities should preclude the site from
40 CFR 51.308(f)(3)(ii)(A) requirements, and that the EPA cannot ignore
the issues. SRP states that ADEQ has shown that the site would have
experienced drastic visibility improvements if not for the impact of
PM, and that the increases of coarse mass and soil that occurred after
the monitor was relocated in 2015 shows that the increasing trends of
dust at the monitor originate from local sources. SRP further notes
that the current monitor location is not within the Class I area, so it
is unreasonable to assume the local dust impacts experienced at the
monitor result in visibility degradation within the Class I area. SRP
asserts that the EPA's current disapproval deprives the public of an
adequate opportunity to comment as the EPA fails to discuss the
monitoring irregularities at the monitor. SRP claims that the EPA's
disapproval of 40 CFR 51.308(f)(3)(ii) is arbitrary and capricious
because the action ignores the facts presented by ADEQ, ADEQ's
recommendation that the SYCA monitor should not be used for long-term
progress analysis, and instead relies on questionable monitoring data
without any discussion of its merits.
Response E.7. Please see Response B.9.
Further, we do not agree that we ignored ADEQ's monitoring
analysis. On the contrary, we specifically acknowledged this analysis
in our proposal.\183\ However, we found this analysis was insufficient
to meet the requirements of 40 CFR 51.308(f)(3)(ii)(A), given the flaws
in ADEQ's long-term strategy.
---------------------------------------------------------------------------
\183\ See 89 FR 47398, 47433 (``ADEQ provided a discussion in
its submission that explains how the monitor was relocated in 2015
and experienced increases in soil and coarse mass extinction.'')
---------------------------------------------------------------------------
We also disagree with the commenter's assertion that ADEQ
determined that monitor irregularities should preclude the site from 40
CFR 51.308(f)(3)(ii)(A) requirements. Rather, ADEQ asserted that the
Plan complied
[[Page 102769]]
with these requirements.\184\ We do not agree with this assertion for
the reasons stated in our proposal and Response B.9 of this document.
ADEQ also noted that it will continue to monitor and investigate the
source of coarse mass impacts at the monitor site during subsequent
progress reports and periodic comprehensive Regional Haze SIP
revisions.\185\ We will work with ADEQ and other stakeholders on the
consideration of this issue in the development of future SIP revisions.
---------------------------------------------------------------------------
\184\ Plan p. 106 (``In accordance with 40 CFR
51.308(f)(3)(ii)(A), Arizona has provided robust documentation in
support of the state's source selection criteria and reasonable
progress determinations for selecting measures for inclusion in its
long-term strategy.'')
---------------------------------------------------------------------------
F. Community Sign-On Letter
The Community Sign-On Letter is supportive with three suggestions
for improvement. The supportive portions of the letter do not require a
response.
Comment F.1. The commenter requests that the EPA confirm the
polluting facilities that ADEQ improperly excluded from analysis in the
state's plan.
Response F.1. Please see Response A.1, which describes the EPA's
approach to reviewing the Plan generally and source selection
specifically.
Comment F.2. The commenter requests that the EPA confirm the
specific errors in each of the selected source's review of pollution
controls.
Response F.2. We have explained the bases for our partial
disapproval with respect to 40 CFR 51.308(f)(2) in our proposal and
elsewhere in this document. Therefore, the EPA's disapproval of
51.308(f)(2) is justified.
Comment F.3. The commenter requests that the EPA consider the
equity and environmental justice impacts of the state's plan and
maximize the environmental justice co-benefits of haze pollution
reduction opportunities.
Response F.3. The regional haze statutory provisions do not
explicitly address considerations of environmental justice, and neither
do the regulatory requirements of the second planning period in 40 CFR
51.308(f), (g), and (i). As explained in ``EPA Legal Tools to Advance
Environmental Justice,'' \186\ the CAA provides states with the
discretion to consider environmental justice in developing rules and
measures related to regional haze. While a State may consider
environmental justice under the reasonable progress factors, neither
the statute nor the RHR requires states to conduct an environmental
justice analysis for the EPA to approve a SIP submission. Furthermore,
the CAA and applicable implementing regulations neither prohibit nor
require such an evaluation of environmental justice with regard to a
regional haze SIP submission. The EPA is not identifying environmental
justice as a basis for its decision to partially approve and partially
disapprove Arizona's SIP revision.
---------------------------------------------------------------------------
\186\ See EPA Legal Tools to Advance Environmental Justice, May
2022, available at www.epa.gov/system/files/documents/2022-05/EJ%20Legal%20Tools%20May%202022%20FINAL.pdf at 35-36.
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G. Comment Letter From NPCA et al.
Sections I (``Background'') and II (``EPA's Proposed Rule Correctly
Disapproves ADEQ's Approach To Source Selection, Four-Factor Analyses,
Control Determinations, and Reasonable Progress Goals'') of the NPCA et
al.'s comment letter either provide background information or are
supportive and therefore do not require a response. We respond to
sections III-VI of the NPCA et al.'s comment letter below.
Comment G.1. NPCA et al. request the EPA to be more specific about
the point sources of concern. First, the commenter states that in the
final rule, the EPA should list the sources that ADEQ improperly
screened out and failed to conduct a four-factor reasonable progress
analysis for, namely Apache Unit 3. Cholla Units 1, 3-4, Coronado,
ASARCO Hayden Smelter, Lhoist-Nelson Lime Plant, Apache Nitrogen,
Freeport-McMoRan Miami Smelter.
Second, the commenter states that the EPA should list each point
source for which the EPA is disapproving ADEQ's control determinations,
namely SGS Units 1 and 2 NOX and SO2 analyses,
SGS 3 and 4 SO2 analyses, IGS 3 and 4 NOX
analyses, Williams Compressor Station NOX analysis, Wilcox
Compressor Station NOX analysis, Drake Cement Plant
NOX and SO2 analyses, and Phoenix Cement-
Clarkdale Plant, NOX and PM10 analyses.
Response G.1. See Response A.1. The EPA is disapproving long-term
strategy as a whole. Any subsequent SIP revision developed by the
State, or FIP developed by EPA, will need to establish a long-term
strategy in accordance with the regulatory requirements. 40 CFR
51.308(f)(2).
Comment G.2. NPCA et al. comment that the EPA must consider the
equity and environmental justice impacts of its action on Arizona's
Regional Haze SIP. The commenter indicates that the EPA guidance
documents direct states to consider the broader environmental
implications of their regional haze plans, by requiring an analysis of
the ``non-air quality environmental impacts of compliance,'' including
environmental justice, and that meaningful outreach and engagement to
environmental justice communities is crucial. NPCA et al. request ADEQ
and the EPA to conduct meaningful outreach, substantively incorporate
equity and environmental justice into the SIP revision and the
supporting technical documents, such as preparing maps that detail the
location of environmental justice communities in Arizona and the
location of nearby visibility-impairing sources. The commenters specify
that a number of visibility-impairing sources in Arizona are located
near vulnerable communities, yet ADEQ did not conduct a four-factor
analysis for many of these sources.
Response G.2. See Response F.3. NPCA et al. provided additional
demographic information for communities near several sources in
Arizona. Without agreeing with the particular relevance or accuracy of
this information, the EPA acknowledges the demographic information
provided as part of the comment. As discussed in our proposal and in
this document, the EPA has evaluated Arizona's SIP submission against
the statutory and regulatory regional haze requirements and determined
that it has not satisfied certain minimum requirements.
Comment G.3. NPCA et al. note that the EPA must disapprove ADEQ's
adjustments to the URP glidepath for each Class I area. The commenter
asserts that the EPA can only approve these URP glidepath adjustments
if it determines ADEQ used ``scientifically valid data and methods''
per 40 CFR 51.308(f)(1)(vi)(B), and they request the EPA to disapprove
ADEQ's URP glidepath adjustments for two reasons.
First, NPCA et al. state that the EPA incorrectly suggests that
ADEQ's adjustments were de minimis and had no effect on whether the
RPGs for each Class I area are above or below the URP glidepath.
However, ADEQ's decision to adjust the default URP glidepaths
significantly affected whether the RPG for several Class I areas are
above or below the glidepath, such as Chiricahua Wilderness, Saguaro
National Park, and Superstition Wilderness.
Second, NPCA et al. state that the EPA's determination that ADEQ's
glidepath adjustments used scientifically valid data and methods is
unsound given that the EPA previously expressed concerns with these
data and methods. The commenter further states that the EPA highlighted
substantial problems in its 2019 Modeling
[[Page 102770]]
Technical Support Document (TSD) \187\ with available data and methods
for adjusting Class I glidepaths based on both international and
prescribed wildland fire emissions, including international emissions
data from just a single year,\188\ and uncertainty in many of the
calculations and modeling and ambient data.\189\
---------------------------------------------------------------------------
\187\ Memorandum from Richard A. Wayland, Director, Air Quality
Assessment Division, EPA, to Regional Air Division Directors,
Subject: ``Availability of Modeling Data and Associated Technical
Support Document for the EPA's Updated 2028 Visibility Air Quality
Modeling,'' September 19, 2019, available at https://www.epa.gov/visibility/technical-support-document-epas-updated-2028-regional-haze-modeling.
\188\ 2019 Modeling TSD, p. 37.
\189\ 2019 Modeling TSD, p. 67.
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Response G.3. As noted in our proposal and in our response to
Comment C.5, being on or below the URP does not relieve a state from
considering the four statutory factors to determine what level of
control is needed to achieve reasonable progress.\190\ The URP is used
in later steps of the reasonable progress analysis for informational
purposes and to provide a non-enforceable benchmark against which to
assess a Class I area's rate of visibility improvement. Achieving the
URP does not mean that a Class I area is making ``reasonable progress''
and does not relieve a state from using the four statutory factors to
determine what level of control is needed to achieve such
progress.\191\
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\190\ 89 FR 47398, 47402, n. 52.
\191\ See, e.g., 82 FR 3078, 3093 and 89 FR 47398, 47402, n. 52.
---------------------------------------------------------------------------
We also find that the specific points raised by NPCA are
overstated, and we therefore disagree that we should disapprove ADEQ's
glidepath adjustments. First, the EPA's proposal stated, ``[t]he choice
of adjustment option made no difference in whether the RPG for each
area was above or below its URP glidepath,'' \192\ not that an
adjustment, in general, made no difference. That is, the glidepath
adjustment results were nearly the same between the option that
adjusted for international anthropogenic impacts alone, and the option
that adjusted for international impacts together with wildland
prescribed fire impacts. The commenter is correct that for several
Class I areas, the adjustment itself does make a difference in the
assessment of whether projected visibility impacts are above or below
the glidepath. Our assessment of the URP and RPGs took that into
account, as noted in our proposal.\193\ If the adjustment were rejected
altogether, that would strengthen the case for the need for the State
to make a ``robust demonstration'' that there are no reasonable
additional emissions reduction measures, although in this case that
need is already established because Sycamore Canyon Wilderness impacts
are above its glidepath with or without adjustment.\194\
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\192\ 89 FR 47398, 47411 (emphasis added).
\193\ 89 FR 47398, 47432-47433.
\194\ 2022 Arizona Regional Haze Plan, p. D-24 and Figure D-39.
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Second, the EPA disagrees that the glidepath adjustments were not
based on scientifically valid data and methods. The 2019 Modeling TSD
acknowledges various limitations and uncertainties in various model
inputs and calculation approaches, which is always the case in
modeling. That acknowledgement was not intended as an assertion by the
EPA that its own data and methods were scientifically invalid.
Similarly, it was not intended that a glidepath adjustment made using
the same or similar methods would not be based on scientifically valid
data and methods. Rather, the data and methods used were the best
available to the EPA at the time of the modeling in that TSD, and
presented as a reasonable and valid approach for glidepath adjustment
that states could consider in developing their SIPs, without precluding
the use of better data and methods that a state might develop. The
EPA's specific statement about ``uncertainty in many of the
calculations and modeling and ambient data'' was in the context of
alternative approaches to adjusting the glidepath, for which the 2019
Modeling TSD provided five,\195\ including the default. Those
approaches differed in whether international impacts and prescribed
fire should be combined with the baseline model run on an absolute or
relative basis (i.e., simply added in or applied as a percent
difference), and whether natural conditions should be estimated from
monitored data or from modeling. There is not one clearly best approach
that would be most appropriate for all Class I areas in the country,
but the EPA chose one as the default and provided a range of adjustment
results. For Arizona Class I areas, the glidepath adjustment in the
default approach was nearly the same as the maximum among the
approaches examined, except for the Grand Canyon and Sycamore Canyon
Wilderness, where it gave closer to the minimum adjustment among the
approaches considered.\196\ As noted in the EPA's proposal, the WRAP
results used by ADEQ were fairly close to default approach values
estimated by the EPA and were determined to be based on scientifically
valid data and methods.\197\ The EPA does not find any reason, and the
commenters do not provide any additional reasons to determine
otherwise.
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\195\ 2019 modeling TSD, p. 55.
\196\ 2019 modeling TSD, p. 56, Table 5-2.
\197\ 89 FR 47398, 47411.
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Comment G.4. NPCA et al. indicate that the EPA must disapprove
additional aspects of ADEQ's source selection process, noting that
ADEQ's Q/d threshold of 10 is arbitrarily high, ADEQ should not have
eliminated the totality of ``effectively-controlled'' process emissions
from its Q/d analysis, and ADEQ's ``de minimis point source process
determination'' is arbitrary and capricious.
Response G.4. As explained in our proposal and the 2021
Clarifications Memo, the RHR does not require states to consider
controls for all sources, all source categories, or any or all sources
in a particular source category.\198\ Rather, the states have
discretion to choose any source selection methodology or threshold that
is reasonable, but the choices they make must be explained and should
be designed to result in a set of sources which capture a meaningful
portion of the state's total contribution to visibility impairment. To
this end, 40 CFR 51.308(f)(2)(i) requires that a state's SIP submission
must include ``a description of the criteria it used to determine which
sources or groups of sources it evaluated.'' The technical basis for
source selection, which may include methods for quantifying potential
visibility impacts such as emissions divided by distance metrics,
trajectory analyses, residence time analyses, and/or photochemical
modeling, must also be appropriately documented, as required by 40 CFR
51.308(f)(2)(iii).
---------------------------------------------------------------------------
\198\ 89 FR 47398, 47403; 2021 Clarifications Memo, Sections 2
and 2.1.
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Overall, in this particular instance, the EPA finds that that many
aspects of ADEQ's source selection process, such as its focus on
sulfate, nitrate, and coarse mass and its use of a Q/d value of 10 for
point sources, were reasonable and adequately explained and documented.
However, we also find that ADEQ did not provide an adequate
justification for screening out certain sources and units from
conducting a four-factor analysis on the basis that they are
``effectively controlled'' as part of its source selection
process.\199\ As the
[[Page 102771]]
EPA has previously stated, ``[s]ource selection is a critical step in
states' analytical processes. All subsequent determinations of what
constitutes reasonable progress flow from states' initial decisions
regarding the universe of pollutants and sources they will consider for
the second planning period.'' \200\ Therefore, Arizona's source
selection methodology, including unjustified effectively controlled
determinations, supports the EPA's determination that Arizona's long-
term strategy did not include all measures necessary to make reasonable
progress. Therefore, EPA's disapproval of 40 CFR 51.308(f)(2), as a
whole, is reasonable.
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\199\ See 40 CFR 51.308(f)(2)(i) (``. . . The State must include
in its implementation plan a description of the criteria is used to
determine which sources or groups of sources it evaluated and how
the four factors were taken into consideration in selecting the
measures for inclusion in its long-term strategy'').
\200\ 2021 Clarifications Memo, p. 3.
---------------------------------------------------------------------------
Comment G.5. NPCA et al. state that ADEQ's average cost-
effectiveness threshold is too low, and requests the EPA to further
clarify that ADEQ's $6,500 per ton cost threshold is too low and
unreasonably excludes cost-effective control measures.
Response G.5. While the EPA is not disapproving ADEQ's cost
threshold, we nonetheless find that the State did not apply this
threshold in a consistent and reasonable manner, as described in our
proposal \201\ and Response D.4 of this document.
---------------------------------------------------------------------------
\201\ 89 FR 47398, 47429.
---------------------------------------------------------------------------
Comment G.6. NPCA et al. comment that the EPA must promptly issue a
Regional Haze FIP for Arizona. The commenter recommends that to provide
sufficient time for sources to implement control measures before the
second implementation period ends in 2028, the EPA should issue a
proposed FIP in 2024 and finalize the FIP by the end of 2025.
Response G.6. Disapproving a SIP submission establishes a two-year
deadline for the EPA to promulgate a FIP to address the relevant
requirements under CAA section 110(c), unless the EPA approves a
subsequent SIP submission that meets these requirements. The EPA is not
proposing a FIP for the disapproved requirements of the 2022 Arizona
Regional Haze Plan at this time.
III. Final Action
Under CAA section 110(k)(3), and based on the evaluation and
rationale presented in the proposed rule and this final rule, the EPA
is partially approving and partially disapproving the 2022 Arizona
Regional Haze Plan. Specifically, the EPA is approving the elements of
the 2022 Arizona Regional Haze Plan related to requirements contained
in 40 CFR 51.308(f)(1), (f)(4)-(6), and (g)(1)-(5). The EPA is
disapproving the elements of the 2022 Arizona Regional Haze Plan
related to requirements contained in 40 CFR 51.308(f)(2), (f)(3), and
(i)(2)-(4). Further, the EPA is disapproving the interstate transport
requirements of CAA section 110(a)(2)(D)(i)(II) prong 4 (visibility)
for the 2018 Ozone I-SIP submittal and 2015 PM2.5 I-SIP
submittal.
Under section 179(a) of the CAA, final disapproval of a submittal
that addresses a requirement of part D, title I of the CAA or is
required in response to a finding of substantial inadequacy as
described in CAA section 110(k)(5) starts a sanctions clock. Arizona's
2022 Regional Haze Plan, 2018 Ozone I-SIP submittal, and 2015
PM2.5 I-SIP submittal were not submitted to meet any of
these requirements. Therefore, the disapprovals noted in section III.B
will not trigger any offset or highway sanctions clocks. Disapproving a
SIP submission also establishes a two-year deadline for the EPA to
promulgate a FIP to address the relevant requirements under CAA section
110(c), unless the EPA approves a subsequent SIP submission that meets
these requirements. We anticipate that any SIP or FIP that remedies the
disapprovals with respect to Regional Haze requirements, would also, in
conjunction with the existing Arizona Regional Haze FIP, remedy the
disapproval for the interstate transport visibility requirement of CAA
section 110(a)(2)(D)(i)(II) for the 2018 Ozone I-SIP submittal and 2015
PM2.5 I-SIP submittal.
IV. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, the EPA's role is to review state choices,
and approve those choices if they meet the minimum criteria of the Act.
Accordingly, this final action partially approves and partially
disapproves state law as meeting federal requirements and does not
impose additional requirements beyond those imposed by state law.
Additional information about these statutes and Executive orders
can be found at https://www.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA because this action does not impose additional requirements
beyond those imposed by state law.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities beyond those
imposed by state law.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. This action does not impose additional requirements
beyond those imposed by state law. Accordingly, no additional costs to
State, local, or Tribal governments, or to the private sector, will
result from this action.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.
F. Executive Order 13175: Coordination With Indian Tribal Governments
This action does not have Tribal implications, as specified in
Executive Order 13175, because the SIP is not approved to apply on any
Indian reservation land or in any other area where the EPA or an Indian
Tribe has demonstrated that a Tribe has jurisdiction, and will not
impose substantial direct costs on Tribal governments or preempt Tribal
law. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
[[Page 102772]]
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order. Therefore, this action is not
subject to Executive Order 13045 because it merely partially approves
and partially disapproves state law as meeting federal requirements.
Furthermore, the EPA's Policy on Children's Health does not apply to
this action.
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA)
Section 12(d) of the NTTAA directs the EPA to use voluntary
consensus standards in its regulatory activities unless to do so would
be inconsistent with applicable law or otherwise impractical. The EPA
believes that this action is not subject to the requirements of section
12(d) of the NTTAA because application of those requirements would be
inconsistent with the CAA.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
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.
Executive Order 14096 (Revitalizing Our Nation's Commitment to
Environmental Justice for All, 88 FR 25251, April 26, 2023) builds on
and supplements E.O. 12898 and defines EJ as, among other things, ``the
just treatment and meaningful involvement of all people, regardless of
income, race, color, national origin, or Tribal affiliation, or
disability in agency decision-making and other Federal activities that
affect human health and the environment.''
The State did not evaluate EJ considerations as part of its SIP
submittal; the CAA and applicable implementing regulations neither
prohibit nor require such an evaluation. EPA did not perform an EJ
analysis and did not consider EJ in this action. Due to the nature of
the action being taken here, this action is expected to have a neutral
to positive impact on the air quality of the affected area.
Consideration of EJ is not required as part of this action, and there
is no information in the record inconsistent with the stated goal of
E.O. 12898/14096 of achieving EJ for communities with EJ concerns.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).
L. Petitions for Judicial Review
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by February 18, 2025. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule 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, Intergovernmental relations, Nitrogen oxides, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Sulfur
Oxides, Volatile organic compounds.
Dated: December 10, 2024.
Martha Guzman Aceves,
Regional Administrator, Region IX.
For the reasons stated in the preamble, the EPA amends chapter I,
title 40 of the Code of Federal Regulations 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 D--Arizona
0
2. In Sec. 52.120(e), amend Table 1 by adding an entry for ``State
Implementation Plan Revision: Regional Haze Program (2018-2028)''
before the entry for ``Arizona State Implementation Plan Revision under
Clean Air Act Section 110(a)(1) and (2); Implementation of the 2008
Lead National Ambient Air Quality Standards, excluding the
appendices.''
The addition reads as follows:
Sec. 52.120 Identification of plan.
* * * * *
(e) * * *
Table 1--EPA-Approved Non-Regulatory and Quasi-Regulatory Measures
[Excluding certain resolutions and statutes, which are listed in tables 2 and 3, respectively] \1\
--------------------------------------------------------------------------------------------------------------------------------------------------------
Applicable geographic
Name of SIP provision or nonattainment area State submittal date EPA approval date Explanation
or title/subject
--------------------------------------------------------------------------------------------------------------------------------------------------------
The State of Arizona Air Pollution Control Implementation Plan
Clean Air Act Section 110(a)(2) State Implementation Plan Elements (Excluding Part D Elements and Plans)
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
State Implementation Plan Revision: State-wide............. August 15, 2022................ January 17, 2025...............
Regional Haze Program (2018-2028),
excluding Chapters 2, 6.1, 6.2,
6.3, 7, 8, 9, and 10 and Appendices
B, C, D, E, F, G, H, I, J, and L.
[[Page 102773]]
* * * * * * *
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\1\ Table 1 is divided into three parts: Clean Air Act Section 110(a)(2) State Implementation Plan Elements (excluding Part D Elements and Plans), Part
D Elements and Plans (other than for the Metropolitan Phoenix or Tucson Areas), and Part D Elements and Plans for the Metropolitan Phoenix and Tucson
Areas.
* * * * *
0
3. Section 52.145 is amended by adding paragraph (o) to read as
follows:
Sec. 52.145 Visibility protection.
* * * * *
(o) Disapproval. On August 15, 2022, the Arizona Department of
Environmental Quality submitted the ``State Implementation Plan
Revision: Regional Haze Program (2018-2028).''
(1) The following portions of the ``State Implementation Plan
Revision: Regional Haze Program (2018-2028)'' are disapproved because
they do not meet the applicable requirements of Clean Air Act sections
169A and 169B and the Regional Haze Rule in 40 CFR 51.301 through
51.308.
(i) Chapters 2, 6.1, 6.2, 6.3, 7, 8, 9, and 10;
(ii) Appendices B, C, D, E, F, G, H, I, J, and L.
0
4. Section 52.147 is amended by adding paragraph (f) to read as
follows:
Sec. 52.147 Interstate transport.
* * * * *
(f) Disapproval. The SIPs submitted on December 11, 2015 and
September 24, 2018 do not meet the requirements of Clean Air Act
section 110(a)(2)(D)(i)(II) (interfere with measures in any other state
to protect visibility, only) for the 2012 PM2.5 NAAQS and
the 2015 ozone NAAQS, respectively.
[FR Doc. 2024-29508 Filed 12-17-24; 8:45 am]
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