[Federal Register Volume 83, Number 120 (Thursday, June 21, 2018)]
[Proposed Rules]
[Pages 28789-28795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13356]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2015-0501; FRL-9979-79--Region 4]


Air Plan Approval; North Carolina: New Source Review for Fine 
Particulate Matter (PM2.5)

AGENCY: Environmental Protection Agency.

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve changes to the North Carolina State Implementation Plan (SIP), 
submitted by the North Carolina Department of Environmental Quality (NC 
DEQ) through the Division of Air Quality (DAQ), to EPA on October 17, 
2017. This SIP submittal modifies North Carolina's Prevention of 
Significant Deterioration (PSD) regulations and includes the adoption 
of specific federal provisions needed to meet the New Source Review 
(NSR) permitting program requirements for the fine particulate matter 
(PM2.5) national ambient air quality standards (NAAQS). In 
addition, North Carolina's October 17, 2017, SIP submittal addresses 
portions of the PSD requirements for the infrastructure SIPs for the 
following NAAQS: 1997 Annual and 24-hour PM2.5, 2006 24-hour 
PM2.5, 2008 lead, 2008 8-hour ozone, 2010 sulfur dioxide 
(SO2), 2010 nitrogen dioxide (NO2) and 2012 
Annual PM2.5. As a result of this proposed approval of North 
Carolina's modified PSD regulations, EPA is also proposing to approve 
North Carolina's submittal with respect to the related PSD 
infrastructure SIP requirements for these NAAQS. As discussed in this 
notice, EPA previously disapproved portions of earlier submittals from 
North Carolina that were intended to meet

[[Page 28790]]

these requirements. These proposed approvals, if finalized, will remove 
EPA's obligation to promulgate a Federal Implementation Plans (FIP) to 
meet the relevant Clean Air Act (CAA or Act) requirements.

DATES: Comments must be received on or before July 23, 2018.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2015-0501 at http://www.regulations.gov. Follow the online 
instructions for submitting comments. Once submitted, comments cannot 
be edited or removed from Regulations.gov. EPA may publish any comment 
received to its public docket. Do not submit electronically any 
information you consider to be Confidential Business Information (CBI) 
or other information whose disclosure is restricted by statute. 
Multimedia submissions (audio, video, etc.) must be accompanied by a 
written comment. The written comment is considered the official comment 
and should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Joel Huey of the Air Planning and 
Implementation Branch, Air, Pesticides and Toxics Management Division, 
U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW, 
Atlanta, Georgia 30303-8960. Mr. Huey can be reached by telephone at 
(404) 562-9104 or via electronic mail at [email protected].

SUPPLEMENTARY INFORMATION:

I. What are the actions EPA is proposing?
II. Fine Particulate Matter and the NAAQS
III. What is the background for these proposed actions?
    A. Requirements of the 2010 PSD PM2.5 Rule for PSD 
SIP Programs
    B. Requirements for Infrastructure SIPs
    C. EPA's Previous Action on North Carolina's SIP Submittal 
Related to the 2010 PSD PM2.5 Rule
    D. EPA's Previous Action on North Carolina's SIP Submittals 
Related to Infrastructure SIP PSD Elements
IV. What is EPA's analysis of North Carolina's October 17, 2017, SIP 
submittal for PSD?
V. What is EPA's analysis of North Carolina's October 17, 2017, SIP 
submittal for the infrastructure SIP PSD elements?
VI. Incorporation by Reference
VII. Proposed Actions
VIII. Statutory and Executive Order Reviews

I. What are the actions EPA is proposing?

    EPA is proposing two actions with regard to North Carolina's SIP 
submittal updating the State's PSD regulations found at 15A North 
Carolina Administrative Code (NCAC) 02D .0530.\1\ First, EPA is 
proposing to approve North Carolina's October 17, 2017, SIP submittal 
with regard to changes to the State's regulation at 15A NCAC 02D .0530 
because EPA has preliminarily determined that the State's changes fully 
meet the requirements of EPA's rulemaking, ``Prevention of Significant 
Deterioration (PSD) for Particulate Matter Less Than 2.5 Micrometers 
(PM2.5)--Increments, Significant Impact Levels (SILs) and 
Significant Monitoring Concentration (SMC),'' Final Rule, 75 FR 64864 
(October 20, 2010) (hereafter referred to as the ``2010 PSD 
PM2.5 Rule'').
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    \1\ North Carolina's preconstruction permitting program for new 
and modified stationary sources is codified at 15A NCAC Subchapter 
02D. Specifically, North Carolina's PSD preconstruction regulations 
are found at 15A NCAC 02D .0530 and apply to major stationary 
sources or modifications constructed in areas designated attainment 
or unclassifiable for the NAAQS, as required under part C of title I 
of the CAA. North Carolina's nonattainment new source review (NNSR) 
regulations are found at 15A NCAC 02D .0531 and apply to the 
construction and modification of any major stationary source of air 
pollution located in or impacting a NAAQS nonattainment area, as 
required by part D of title I of the CAA. This proposed action does 
not relate to North Carolina's NNSR regulations, which are already 
fully approved into North Carolina's SIP.
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    Second, as a result of the proposed approval of North Carolina's 
October 17, 2017, SIP submittal for these PSD requirements, EPA is 
proposing to approve this submittal for portions of the infrastructure 
SIP PSD elements for the following NAAQS: 1997 Annual and 24-hour 
PM2.5, 2006 24-hour PM2.5, 2008 lead, 2008 8-hour 
ozone, 2010 SO2, 2010 NO2 and 2012 Annual 
PM2.5.2 3
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    \2\ North Carolina's October 17, 2017, SIP submittal requested 
approval of the PSD infrastructure SIPs for the 2008 lead, 2008 8-
hour ozone, 2010 SO2, 2010 NO2 and the 2012 
PM2.5 NAAQS. On April 16, 2018, the State submitted a 
letter to EPA clarifying that the same submittal is intended to 
satisfy the PSD elements of the State's infrastructure SIP 
submittals for the 1997 and 2006 PM2.5 NAAQS as well.
    \3\ The background for various NAAQS is provided in EPA's 
proposed and final rulemaking entitled ``Air Plan Approval and 
Disapproval; North Carolina: New Source Review for Fine Particulate 
Matter (PM2.5).'' See 81 FR 28797 (May 10, 2016) and 81 
FR 63107 (September 14, 2016).
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II. Fine Particulate Matter and the NAAQS

    As described in EPA's May 10, 2016 (81 FR 28801), proposal action 
to partially approve and partially disapprove revisions to North 
Carolina's SIP with regard to the State's NSR permitting regulations 
for PM2.5, ``particulate matter,'' also known as particle 
pollution or PM, is a complex mixture of extremely small particles and 
liquid droplets that can affect the heart and lungs and cause serious 
health effects. EPA currently regulates PM according to two size 
categories: PM10, which comprises all particles smaller than 
or equal to 10 micrometers in diameter and includes ``inhalable coarse 
particles,'' and PM2.5, also known as ``fine particles,'' 
which comprises all particles smaller than or equal to 2.5 micrometers 
in diameter.
    The CAA requires EPA to set air quality standards to protect both 
public health and the public welfare (e.g., visibility, crops and 
vegetation). Particle pollution, especially fine particles, affects 
both. The human health effects associated with long- or short-term 
exposure to PM2.5 are significant and include premature 
mortality, aggravation of respiratory and cardiovascular disease (as 
indicated by increased hospital admissions and emergency room visits) 
and development of chronic respiratory disease. In addition, welfare 
effects associated with elevated PM2.5 levels include 
visibility impairment as well as effects on sensitive ecosystems, 
materials damage and soiling and climatic and radiative processes.
    Since July 1, 1987, EPA had used PM10 as an indicator 
for the PM NAAQS. See 52 FR 24634. On July 18, 1997, EPA amended the PM 
NAAQS by adding new standards that focus on fine particles, using 
PM2.5 as the indicator. See 62 FR 38652. EPA established 
health-based (primary) annual and 24-hour standards for 
PM2.5, setting the annual standard at a level of 15 
micrograms per cubic meter ([mu]g/m\3\) and the 24-hour standard at a 
level of 65 [mu]g/m\3\ (the ``1997 Annual and 24-hour PM2.5 
NAAQS''). EPA established welfare-based (secondary) standards identical 
to the primary standards. Id. On October 17, 2006, EPA revised the 
primary and secondary NAAQS for PM2.5. See 71 FR 61236. In 
that rulemaking, EPA reduced the 24-hour NAAQS for PM2.5 to 
35 [mu]g/m\3\ (the ``2006 24-hour PM2.5 NAAQS'') and 
retained the existing annual PM2.5 NAAQS of 15 [mu]g/m\3\. 
Id. On January 15, 2013, EPA revised the primary NAAQS but not the 
secondary NAAQS for PM2.5. See 78 FR 3086. In that 
rulemaking, EPA reduced the annual NAAQS for PM2.5 to 12 
[mu]g/m\3\ (the ``2012 Annual PM2.5

[[Page 28791]]

NAAQS'' \4\) and retained the existing 24-hour PM2.5 NAAQS 
of 35 [mu]g/m\3\.
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    \4\ Signed by the EPA Administrator on December 14, 2012.
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III. What is the background for these proposed actions?

A. Requirements of the 2010 PSD PM2.5 Rule for PSD SIP Programs

    As established in part C of title I of the CAA, EPA's PSD program 
protects public health and welfare from adverse effects of air 
pollution by ensuring that construction of new major sources or 
modifications in attainment or unclassifiable areas does not lead to 
significant deterioration of air quality while simultaneously ensuring 
that economic growth will occur in a manner consistent with 
preservation of clean air resources. Under section 165(a)(3) of the 
CAA, a PSD permit applicant must demonstrate that emissions from the 
proposed construction and operation of a facility ``will not cause, or 
contribute to, air pollution in excess of any maximum allowable 
increase or allowable concentration for any pollutant.'' In other 
words, when a source applies for a permit to emit a regulated air 
pollutant in an area that is designated as attainment or unclassifiable 
for a NAAQS, the state and EPA must determine if the source's emissions 
of that pollutant will cause significant deterioration in air quality. 
Significant deterioration occurs when the amount of the new pollution 
exceeds the applicable PSD increment, which is the ``maximum allowable 
increase'' of an air pollutant allowed to occur above the applicable 
baseline concentration \5\ for that pollutant. Therefore, an increment 
is the mechanism used to estimate ``significant deterioration'' of air 
quality for a pollutant in an area.
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    \5\ Section 169(4) of the CAA provides that the baseline 
concentration of a pollutant for a particular baseline area is 
generally the ambient concentration levels which exist at the time 
of the first application for a PSD permit in the area after the 
applicable baseline date.
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    EPA finalized the 2010 PSD PM2.5 Rule to provide 
additional regulatory requirements under the PSD SIP program regarding 
the implementation of the PM2.5 NAAQS. See 75 FR 64864. The 
2010 PSD PM2.5 Rule required states to submit SIP revisions 
to EPA by July 20, 2012, adopting provisions equivalent to or at least 
as stringent as the PSD increments and associated implementing 
regulations. Specifically, the 2010 PSD PM2.5 Rule requires 
states to adopt and submit for EPA approval into their SIP the 
numerical PM2.5 increments promulgated pursuant to section 
166(a) of the CAA to prevent significant deterioration of air quality 
in areas meeting the NAAQS. States are also required to adopt and 
submit for EPA approval revisions to the definitions for ``major source 
baseline date,'' ``minor source baseline date,'' and ``baseline area'' 
as part of the implementing regulations for the PM2.5 
increment.
    For purposes of calculating increment consumption, a baseline area 
for a particular pollutant includes the attainment or unclassifiable 
area in which the source is located and any other attainment or 
unclassifiable area in which the source's emissions of that pollutant 
are projected (by air quality modeling) to result in a significant 
ambient pollutant increase. See 40 CFR 51.166(b)(15)(i). Once the 
baseline area is established, subsequent PSD sources locating in that 
area need to consider that a portion of the available increment may 
have already been consumed by previous emission increases.
    In general, the submittal date of the first complete PSD permit 
application in a particular area is the operative ``baseline date,'' 
after which new sources must evaluate increment consumption.\6\ On or 
before the date of the first complete PSD application, existing ambient 
concentration levels of a pollutant generally are considered to 
represent the baseline concentration from which increment consumption 
is calculated, except for certain changes in ambient concentration 
levels caused by emission changes from construction at major stationary 
sources. Increases in ambient concentration levels caused by emission 
increases that occur after the baseline date will be counted toward the 
amount of increment consumed. Similarly, decreases in ambient 
concentration levels caused by emission decreases that occur after the 
applicable baseline date either restore or expand the amount of 
increment available.
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    \6\ Baseline dates are pollutant-specific. That is, a complete 
PSD application establishes the baseline dates only for those 
regulated NSR pollutants that are projected to be emitted in 
significant amounts (as defined in the regulations) by the 
applicant's new source or modification. Thus, an area may have 
different baseline dates for different pollutants.
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    In practice, three dates related to the PSD baseline concept are 
important in understanding how to calculate the amount of increment 
consumed--(1) trigger date; (2) major source baseline date; and (3) 
minor source baseline date. The trigger date, as the name implies, is a 
fixed date that initiates the overall increment consumption process 
nationwide. See 40 CFR 51.166(b)(14)(ii). The ``major source baseline 
date'' and the ``minor source baseline date'' are necessary to properly 
account for the increment-affecting emissions occurring after the 
trigger date, in accordance with the statutory definition of ``baseline 
concentration'' in section 169(4) of the Act. The ``major source 
baseline date,'' which precedes the trigger date, is the date after 
which actual changes in emissions associated with construction at any 
major stationary source affect the PSD increment. Ambient concentration 
levels associated with such changes in emissions are not included in 
the baseline concentration, even if the changes in emissions occur 
before the minor source baseline date. In accordance with the statutory 
definition of ``baseline concentration'' at section 169(4), the PSD 
regulations define a fixed date, related to the increments that EPA 
established for a particular pollutant, to represent the major source 
baseline date for that pollutant. The ``minor source baseline date,'' 
which is also pollutant-specific, is the earliest date after the 
trigger date on which a source or modification submits the first 
complete application for a PSD permit in a particular area. This is the 
date on which the baseline concentration associated with a particular 
increment generally is established. After the minor source baseline 
date, any ambient concentration level changes caused by a change in 
actual emissions (from both major and minor sources) affects the PSD 
increment for that area.
    Once the minor source baseline date is established, the ambient 
pollutant concentration level increase caused by a proposed emission 
increase from the major source submitting the first PSD application 
consumes a portion of the increment in that area, as do any subsequent 
ambient concentration level increases caused by actual emission 
increases that occur from any new or existing source in the area. When 
the maximum pollutant concentration increase defined by the increment 
has been reached, additional PSD permits cannot be issued until 
sufficient amounts of the affected increment are ``freed up'' via 
emission reductions of the pollutant that may occur voluntarily (e.g., 
via source shutdowns) or by mandatory control requirements imposed by 
the reviewing authority. Moreover, the overall air quality for a 
pollutant in a region cannot be allowed to deteriorate to a level in 
excess of the applicable NAAQS, even if all the increment in the area 
has not been consumed. Therefore, new or modified sources located in 
areas where the ambient pollutant concentration levels are near the 
level allowed by the NAAQS may not have full use of the

[[Page 28792]]

amount of ambient concentration increase allowed by the increment.
    In the 2010 PSD PM2.5 Rule, pursuant to the authority 
under section 166(a) of the CAA, EPA promulgated numerical increments 
for PM2.5 as a new pollutant \7\ for which NAAQS were 
established after August 7, 1977,\8\ and derived 24-hour and annual 
PM2.5 increments for the three area classifications (Class 
I, II and III). See 75 FR 64869 and the ambient air increment table at 
40 CFR 51.166(c)(1). EPA also established the PM2.5 
``trigger date'' as October 20, 2011 (40 CFR 51.166(b)(14)(ii)(c)), and 
the PM2.5 ``major source baseline date'' as October 20, 2010 
(40 CFR 51.166(b)(14)(i)). See 75 FR 64903. Finally, EPA amended the 
term ``baseline area'' at 40 CFR 51.166(b)(15)(i) to include a level of 
significance of 0.3 [mu]g/m\3\, annual average, for establishing a new 
baseline area for purposes of PM2.5 increments. Id.
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    \7\ EPA generally characterized the PM2.5 NAAQS as a 
NAAQS for a new indicator of PM. EPA did not replace the 
PM10 NAAQS with the NAAQS for PM2.5 when the 
PM2.5 NAAQS were promulgated in 1997. EPA rather retained 
the Annual and 24-hour NAAQS for PM10 (retaining 
PM10 as an indicator of coarse particulate matter) and 
treated PM2.5 as a new pollutant for purposes of 
developing increments. See 75 FR at 64864.
    \8\ EPA interprets section 166(a) to authorize EPA to promulgate 
pollutant-specific PSD regulations meeting the requirements of 
section 166(c) and 166(d) for any pollutant for which EPA 
promulgates a NAAQS after 1977.
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    On May 16, 2008 (73 FR 28321), EPA finalized the ``Implementation 
of the New Source Review (NSR) Program for Particulate Matter Less Than 
2.5 Micrometers (PM2.5)'' (hereafter referred to as the 
``2008 NSR PM2.5 Rule'') to implement the 1997 
PM2.5 NAAQS for the NSR permitting program. The 2008 NSR 
PM2.5 Implementation Rule revised the federal NSR program 
requirements to establish the framework for implementing 
preconstruction permit review for the PM2.5 NAAQS in both 
attainment and nonattainment areas. Among other things, the 2008 NSR 
PM2.5 Rule directed states to incorporate into their SIPs 
the requirement for applicability determinations and emission limits in 
PSD and NNSR permits to account for gases that condense to form 
particles (condensable PM).

B. Requirements for Infrastructure SIPs

    By statute, states are required to have SIPs that provide for the 
implementation, maintenance, and enforcement of the NAAQS. States are 
further required to provide a SIP submittal meeting the applicable 
requirements of sections 110(a)(1) and (2) within three years after EPA 
promulgates a new or revised NAAQS.\9\ EPA has historically referred to 
this type of submission as an ``infrastructure SIP.'' Sections 
110(a)(1) and (2) require states to submit infrastructure SIPs that 
address basic program elements, such as air quality planning, 
permitting, and enforcement requirements and legal authority, that are 
designed to assure attainment and maintenance of the newly established 
or revised NAAQS. More specifically, section 110(a)(1) provides the 
procedural and timing requirements for infrastructure SIP submittals. 
Section 110(a)(2) lists specific elements that states must meet to 
satisfy the infrastructure SIP requirements related to a newly 
established or revised NAAQS. The contents of an infrastructure SIP 
submittal may vary depending upon the data and analytical tools 
available to the state, as well as the provisions already contained in 
the state's existing EPA approved SIP at the time when the state 
develops and submits the infrastructure SIP submittal for a new or 
revised NAAQS.
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    \9\ See EPA's proposed approval of North Carolina's December 4, 
2015, infrastructure SIP submittal for the 2012 PM2.5 
NAAQS for a discussion on EPA's general approach to reviewing 
infrastructure SIPs. 81 FR 47314, 47316-18, July 21, 2016.
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    This action pertains to certain PSD-related infrastructure SIP 
requirements of section 110(a)(2)(C), 110(a)(2)(D)(i)(II) and 
110(a)(2)(J), which are relevant in the context of a state's 
development of, and EPA's evaluation of, infrastructure SIP submittals. 
With the exception of these PSD-related requirements of section 
110(a)(2) of the CAA, EPA has already approved or will consider in 
separate actions all other elements of North Carolina's infrastructure 
SIP submittals related to the 1997 Annual and 24-hour PM2.5, 
2006 24-hour PM2.5, 2008 lead, 2008 8-hour ozone, 2010 
SO2, 2010 NO2, and 2012 Annual PM2.5 
NAAQS.

C. EPA's Previous Action on North Carolina's SIP Submittal Related to 
the 2010 PSD PM2.5 Rule

    On September 5, 2013, DAQ submitted a SIP revision in response to 
EPA's 2010 PSD PM2.5 Rule. On September 14, 2016 (81 FR 
63107), EPA disapproved the portions of that submittal that pertain to 
the adoption and implementation of the PM2.5 increments 
because the revision did not fully meet the requirements of the 2010 
PSD PM2.5 Rule. This action addresses only those portions of 
North Carolina's NSR SIP submittals and various infrastructure SIP 
submittals that EPA disapproved in the September 14, 2016, final 
action.\10\ Specifically, although paragraphs (e), (q) and (v) of North 
Carolina's revised PSD regulations at 15A NCAC 02D .0530 incorporated 
the federally-required numerical PM2.5 increments, North 
Carolina's regulations failed to include other federally-required 
provisions needed to implement the PM2.5 increments, 
including (1) the definition of ``[m]ajor source baseline date'' for 
PM2.5 codified at 40 CFR 51.166(b)(14)(i)(c) (defined as 
October 20, 2010); (2) the definition of ``[m]inor source baseline 
date'' for PM2.5 codified at 40 CFR 51.166(b)(14)(ii)(c) 
(which establishes the PM2.5 trigger date as October 20, 
2011); and (3) the definition of ``[b]aseline area'' codified at 40 CFR 
51.166(b)(15)(i). Without these definitions, North Carolina's PSD 
regulations did not require PSD sources to conduct the appropriate 
analyses demonstrating that emissions from proposed construction of new 
major stationary sources or major modifications will not cause or 
contribute to air quality deterioration beyond the amount allowed by 
the PM2.5 increments. Therefore, EPA disapproved all of the 
PM2.5 increment provisions set forth in North Carolina's 
September 5, 2013, SIP submittal, including all of the 
PM2.5-related changes to 15A NCAC 02D .0530 at paragraphs 
(e), (q), and (v). Id. Under section 110(c)(1)(B), these disapprovals 
started a two-year clock for EPA to promulgate a FIP to address the PSD 
PM2.5 program deficiencies.
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    \10\ EPA's September 14, 2016, action approved the following 
portions of the SIP submittals from North Carolina:
    (1) A May 16, 2011, submittal (as revised and updated by the 
State's September 5, 2013, SIP submittal) as meeting the 
requirements of EPA's rule, ``Implementation of the New Source 
Review (NSR) Program for Particulate Matter Less Than 2.5 
Micrometers (PM2.5),'' Final Rule, 73 FR 28321 (May 16, 
2008);
    (2) Administrative changes to North Carolina's PSD and NNSR 
regulations at 15A NCAC 02D .0530 and 15A NCAC 02D .0531 provided by 
the State in a SIP submittal also dated May 16, 2011, including 
clarification of the applicability of best available control 
technology (BACT) and lowest achievable emission rate (LAER) for 
electrical generating units (EGUs) in the State, and the inclusion 
of an additional Federal Land Manager (FLM) notification provision; 
and
    (3) Portions of the PSD elements of North Carolina's 
infrastructure SIP submittals for various NAAQS as indicated.
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D. EPA's Previous Action on North Carolina's SIP Submittals Related to 
Infrastructure SIP PSD Elements

    In addition to disapproving the portions of North Carolina's 
September 5, 2013, SIP submittal pertaining to PM2.5 
increments, EPA's September 14, 2016, action partially approved and

[[Page 28793]]

partially disapproved the following North Carolina infrastructure 
submittals for PSD elements: 1997 Annual and 24-hour PM2.5 
NAAQS (dated April 1, 2008); 2006 24-hour PM2.5 NAAQS (dated 
September 21, 2009); 2008 lead NAAQS (received on July 20, 2012); 2008 
8-hour ozone NAAQS (received on November 2, 2017); 2010 SO2 
NAAQS (received March 18, 2014); 2010 NO2 NAAQS (received on 
August 23, 2013); and 2012 Annual PM2.5 NAAQS (received on 
December 4, 2015). The partial disapproval was limited to the 
PM2.5 increment requirements of the 2010 PM2.5 
Rule for these infrastructure SIP submittals. Under section 
110(c)(1)(B), these disapprovals started a two-year clock for EPA to 
promulgate a FIP to address these infrastructure SIP deficiencies.

IV. What is EPA's analysis of North Carolina's October 17, 2017, SIP 
submittal for PSD?

    On October 17, 2017, North Carolina provided a SIP revision to 
correct the deficiencies EPA had identified in the State's September 5, 
2013, SIP submittal related to the adoption of the PM2.5 
increments. The relevant federal PM2.5 permitting 
requirements for SIPs, set forth in 40 CFR 51.165 and 51.166, were 
promulgated by EPA in the 2010 PSD PM2.5 Rule. States were 
required to make their SIP submittals to address the requirements of 
the 2010 PSD PM2.5 Rule no later than July 20, 2012. North 
Carolina's October 17, 2017, SIP submittal adopts changes in the 
State's PSD permitting program at 15A NCAC 02D .0530 by incorporating 
by reference EPA's PSD regulations as of July 1, 2014. This 
incorporation by reference includes the federally-required provisions 
of EPA's 2010 PSD PM2.5 Rule needed to implement the PSD 
PM2.5 program in North Carolina. Adopting the federal rule 
as of July 1, 2014, has the effect of adding to the North Carolina SIP 
the required definitions of ``major source baseline date,'' ``minor 
source baseline date,'' and ``baseline area'' that were lacking in the 
State's previous PM2.5 submittals.
    This incorporation by reference as of July 1, 2014, also captures 
EPA's October 25, 2012 (77 FR 65107), amendment to the definition of 
``regulated NSR pollutant'' concerning condensable particulate matter. 
In that action, EPA amended the definition of ``regulated NSR 
pollutant'' to remove an inadvertent general requirement of the 2008 
NSR PM2.5 Rule to include the condensable portion of PM when 
measuring emissions-related indicators of ``PM emissions'' in the 
context of the NSR regulations. Under the revised definition, 
PM2.5 and PM10 emissions must include the 
condensable portion of particulate matter, but not PM emissions.\11\ 
Because North Carolina's current federally-approved NSR rule (a portion 
of which was approved by EPA's September 14, 2016, action) adopts the 
PSD definitions in the CFR as of May 16, 2008, it currently requires 
sources to account for the condensable fraction in the measurement and 
regulation of ``PM emissions'' (as well as ``PM2.5 
emissions'' and ``PM10 emissions''). By adopting the PSD 
definitions in the CFR as of July 1, 2014, the revised rule would 
continue to require sources to account for the condensable fraction in 
the measurement of ``PM2.5 emissions'' and ``PM10 
emissions'' but not ``PM emissions.'' As discussed in EPA's May 10, 
2016 (81 FR 28801), proposed action, requiring the inclusion of 
condensable PM in measurements of ``PM emissions'' has little if any 
effect on preventing significant air quality deterioration or on 
efforts to attain the primary and secondary PM NAAQS. Therefore, North 
Carolina's incorporation by reference of EPA's PSD regulations as of 
July 1, 2014, is not only consistent with the current federal rule, but 
it also will not interfere with North Carolina's efforts to prevent 
significant deterioration of air quality and to attain and maintain 
compliance with the PM NAAQS.\12\
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    \11\ The October 25, 2012, final rule retained the general 
requirement to include the condensable fraction of PM10 
and PM2.5 emissions in each case for purposes of NSR 
permitting under EPA's regulations at 40 CFR 51.166(b)(49)(i), 40 
CFR 52.21(b)(50)(i), 40 CFR 51.165(a)(1)(xxxvii), and 40 CFR part 51 
Appendix S.
    \12\ EPA also notes that the version of EPA's PSD regulations 
incorporated by reference excludes the PSD PM2.5 SILs 
provisions and SMC provisions, which EPA had promulgated in the 2010 
PSD PM2.5 Rule and later removed on December 9, 2013. The 
2010 PSD PM2.5 Rule gave states discretion to adopt 
PM2.5 SILs and a SMC. See 75FR at 64900. On January 22, 
2013, the D.C. Circuit vacated and remanded to EPA the portions of 
50 CFR 51.166 and 52.21 addressing the PM2.5 SILs and 
also vacated the parts of the rule that established the 
PM2.5 SMC. On December 9, 2013 (78 FR 73698), EPA took 
final action amending its regulations to remove the PM2.5 
SILs and SMC provisions from the PSD regulations. However, since 
North Carolina's October 17, 2017, submittal does not include SILs 
or SMC, these regulatory provisions are not relevant to this 
proposed action.
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V. What is EPA's analysis of North Carolina's October 17, 2017, SIP 
submittal for the infrastructure SIP PSD elements?

    North Carolina's October 17, 2017, SIP submittal addresses certain 
NSR/PSD requirements, as described above, and thereby meets the related 
infrastructure SIP requirements of section 110(a)(2)(C), 
110(a)(2)(D)(i)(II), and 110(a)(2)(J). For the remainder of this 
proposed rulemaking, EPA's intent in referring to ``PSD elements'' is 
to address the PSD requirements in sections 110(a)(2)(C), 
110(a)(2)(D)(i)(II), and 110(a)(2)(J). More detail regarding the 
aforementioned 110(a)(2) requirements related to PSD is provided in the 
discussion that follows.
    Section 110(a)(2)(C) has three components that must be addressed in 
infrastructure SIP submittals: Enforcement, state-wide regulation of 
new and modified minor sources and minor modifications of major 
sources, and PSD permitting of new major sources and major 
modifications in areas designated attainment or unclassifiable as 
required by CAA title I part C (i.e., the major source PSD program). 
Regarding section 110(a)(2)(C), this proposed action only addresses 
North Carolina's infrastructure SIP submittals with respect to the 
major source PSD program.
    Section 110(a)(2)(D)(i) has two components: 110(a)(2)(D)(i)(I) and 
110(a)(2)(D)(i)(II). Each of these components has two subparts 
resulting in four distinct components, commonly referred to as 
``prongs,'' that must be addressed in infrastructure SIP submittals. 
The first two prongs, which are codified in section 110(a)(2)(D)(i)(I), 
are provisions that prohibit any source or other type of emission 
activity in one state from contributing significantly to nonattainment 
of the NAAQS in another state (``prong 1'') and from interfering with 
maintenance of the NAAQS in another state (``prong 2''). The third and 
fourth prongs, which are codified in section 110(a)(2)(D)(i)(II), are 
provisions that prohibit emissions activity in one state from 
interfering with measures required in another state to prevent 
significant deterioration of air quality (``prong 3'') or to protect 
visibility (``prong 4''). With regard to section 110(a)(2)(D)(i), this 
proposed action only addresses North Carolina's infrastructure SIP 
submittals for prong 3.
    Section 110(a)(2)(J) has four components that must be addressed in 
infrastructure SIP submittals: (1) Consultation with government 
officials; (2) public notification; (3) PSD; and (4) visibility 
protection. With regard to section 110(a)(2)(J), this proposed action 
only addresses North Carolina's infrastructure SIP submittals for PSD.
    Regarding the PSD elements of sections 110(a)(2)(C) and (J), EPA 
interprets the CAA to require each state to make, for each new or 
revised NAAQS, an infrastructure SIP submittal that demonstrates that 
the state has a

[[Page 28794]]

complete PSD permitting program meeting the current requirements for 
all regulated NSR pollutants. The requirements of section 
110(a)(2)(D)(i)(II) (prong 3) may also be satisfied by demonstrating 
that the air agency has a complete PSD permitting program correctly 
addressing all regulated NSR pollutants.
    As described in EPA's guidance dated September 13, 2013,\13\ an 
infrastructure SIP submittal should demonstrate that one or more air 
agencies has the authority to implement a comprehensive PSD permit 
program under CAA title I part C for all PSD-subject sources located in 
areas that are designated attainment or unclassifiable for one or more 
NAAQS. EPA interprets the PSD elements to require that a state's 
infrastructure SIP submittal for a particular NAAQS demonstrate that 
the state has a complete PSD permitting program in place covering all 
regulated NSR pollutants. A state's PSD permitting program is complete 
for the PSD elements if EPA has already approved or is simultaneously 
approving the state's implementation plan with respect to all 
structural PSD requirements \14\ that are due under the EPA regulations 
or the CAA on or before the date of EPA's proposed action on the 
infrastructure SIP submittal.
---------------------------------------------------------------------------

    \13\ EPA's September 13, 2013, guidance, titled ``Guidance on 
Infrastructure State Implementation Plan (SIP) Elements under Clean 
Air Act Sections 110(a)(1) and 110(a),'' provides advice on the 
development of infrastructure SIPs for the 2008 ozone NAAQS, the 
2010 nitrogen dioxide NAAQS, the 2010 sulfur dioxide NAAQS, and the 
2012 PM2.5 NAAQS, as well as infrastructure SIPs for new 
or revised NAAQS promulgated in the future.
    \14\ Structural PSD program provisions include provisions 
necessary for the PSD program to address all regulated sources and 
regulated pollutants but do not include provisions under 40 CFR 
51.166 that are considered optional.
---------------------------------------------------------------------------

    On September 14, 2016, EPA partially approved and partially 
disapproved the PSD elements of North Carolina's infrastructure SIP 
submittals for the following NAAQS: 1997 Annual and 24-hour 
PM2.5; 2006 24-hour PM2.5; 2008 lead; 2008 8-hour 
ozone; 2010 NO2; 2010 SO2; and 2012 Annual 
PM2.5. See 81 FR 63107. The partial disapproval was limited 
to the PM2.5 increment requirements of the 2010 
PM2.5 Rule for these infrastructure SIP submittals. North 
Carolina submitted its October 17, 2017, SIP revision to EPA to correct 
the deficiencies in the State's PSD permitting program, and, as 
previously discussed, EPA is proposing to approve this SIP revision. If 
EPA's proposed action is finalized, North Carolina's SIP will include a 
complete PSD program that addresses all structural PSD requirements due 
under the CAA and EPA regulations. Because EPA proposes to approve 
North Carolina's SIP revisions for the PSD program, it is also 
proposing approval of the October 17, 2017, submittal for the PSD 
infrastructure SIP requirements of sections 110(a)(2)(C), 
110(a)(2)(D)(i)(II), and 110(a)(2)(J) for the 2008 lead NAAQS, 2008 
ozone NAAQS, 2010 SO2 NAAQS, 2010 NO2 NAAQS, and 
1997, 2006 and 2012 PM2.5 NAAQS.\15\
---------------------------------------------------------------------------

    \15\ EPA has already approved or will consider in separate 
actions all other elements from North Carolina infrastructure SIP 
submissions related to the 2008 lead, 2008 8-hour ozone, 2010 
NO2, 2010 SO2 NAAQS, and 1997, 2006 and 2012 
PM2.5 NAAQS.
---------------------------------------------------------------------------

VI. Incorporation by Reference

    In this rule, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference North Carolina's regulations 15A NCAC 02D .0530, entitled 
``Prevention of Significant Deterioration,'' effective September 1, 
2017. EPA has made, and will continue to make, these documents 
generally available through www.regulations.gov and in hard copy at the 
EPA Region 4 office (see the ADDRESSES section of this preamble for 
more information).

VII. Proposed Actions

    EPA is proposing to approve changes to the North Carolina SIP, 
provided by the NC DEQ, to EPA on October 17, 2017. These changes 
modify North Carolina's NSR permitting regulations codified at 15A 02D 
.0530--Prevention of Significant Deterioration and include the adoption 
of some federal requirements respecting implementation of the 
PM2.5 NAAQS through the NSR permitting program. 
Specifically, EPA is proposing to approve North Carolina's October 17, 
2017, SIP submittal as it relates to the requirements to comply with 
EPA's 2010 PSD PM2.5 Rule. EPA also notes that North 
Carolina's incorporation by reference of EPA's PSD regulations as of 
July 1, 2014, includes EPA's amendment to the definition of ``regulated 
NSR pollutant'' concerning condensable PM promulgated on October 25, 
2012.
    If EPA finalizes all of the actions proposed in this notice, the 
version of 15A NCAC 02D .0530 (PSD) that became effective in the State 
on September 1, 2017, will be incorporated into North Carolina's SIP. 
As a result of the proposed approval of North Carolina's October 17, 
2017, SIP submittal, EPA is also proposing to approve portions of the 
PSD elements of North Carolina's infrastructure SIP submittals (i.e., 
CAA sections 110(a)(2)(C), 110(a)(2)(D)(i)(II), and 110(a)(2)(J)) for 
the 1997 Annual and 24-hour PM2.5, 2006 24-hour 
PM2.5, 2008 lead, 2008 8-hour ozone, 2010 SO2, 
2010 NO2 and the 2012 Annual PM2.5 NAAQS. If EPA 
finalizes this proposed approval action, that final action will remove 
EPA's obligation under section 110(c) to promulgate a FIP to address 
the PM2.5 increments requirements of EPA's 2010 PSD 
PM2.5 Rule PSD and the related PSD elements for the above 
listed infrastructure SIPs.

VIII. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the Act and applicable 
Federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. This action merely 
proposes to approve state law as meeting Federal requirements and does 
not impose additional requirements beyond those imposed by state law. 
For that reason, these proposed actions:
     Are not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Are not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     Do not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Are certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Do not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Do not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Are not an economically significant regulatory action 
based on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Are not subject to requirements of Section 12(d) of the 
National

[[Page 28795]]

Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) 
because application of those requirements would be inconsistent with 
the CAA; and
     Do not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    The SIP is not approved to apply on any Indian reservation land or 
in any other area where EPA or an Indian tribe has demonstrated that a 
tribe has jurisdiction. In those areas of Indian country, the rule does 
not have tribal implications as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000), nor will it impose substantial direct 
costs on tribal governments or preempt tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
oxides.

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

    Dated: June 12, 2018.
Onis ``Trey'' Glenn, III,
Regional Administrator, Region 4.
[FR Doc. 2018-13356 Filed 6-20-18; 8:45 am]
BILLING CODE 6560-50-P


