
[Federal Register Volume 83, Number 241 (Monday, December 17, 2018)]
[Proposed Rules]
[Pages 64497-64501]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-27254]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2018-0631; FRL-9988-00-Region 4]


Air Plan Approval; Tennessee; NOX SIP Call and CAIR

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
conditionally approve a portion of a State Implementation Plan (SIP) 
revision submitted by the State of Tennessee, through the Tennessee 
Department of Environment and Conservation (TDEC) with a letter dated 
February 27, 2017, to establish a SIP-approved state control program to 
comply with the obligations of the Nitrogen Oxides (NOX) SIP 
Call with respect to certain sources. EPA is also proposing to fully 
approve the remaining portion of the same Tennessee SIP revision to 
remove the SIP-approved portions of the State's Clean Air Interstate 
Rule (CAIR) Program rules from the Tennessee SIP. In addition, EPA is 
proposing to fully approve a revision to the Tennessee SIP submitted 
with a letter dated April 3, 2018, to remove regulations related to a 
previous NOX trading program.

DATES: Comments must be received on or before January 16, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2018-0631 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: Madolyn Sanchez, Air Regulatory 
Management Section, 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. Ms. Sanchez can be reached by telephone at (404) 562-9644 
or via electronic mail at sanchez.madolyn@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    Under Clean Air Act (CAA or Act) section 110(a)(2)(D)(i)(I), which 
EPA has traditionally termed the good neighbor provision, states are 
required to address the interstate transport of air pollution. 
Specifically, the good neighbor provision requires that each state's 
implementation plan contain adequate provisions to prohibit air 
pollutant emissions from within the state that significantly contribute 
to

[[Page 64498]]

nonattainment of the national ambient air quality standards (NAAQS), or 
that interfere with maintenance of the NAAQS, in any other state.
    In October 1998 (63 FR 57356), EPA finalized the ``Finding of 
Significant Contribution and Rulemaking for Certain States in the Ozone 
Transport Assessment Group Region for Purposes of Reducing Regional 
Transport of Ozone''--commonly called the ``NOX SIP Call.'' 
The NOX SIP Call addressed the good neighbor provision for 
the 1979 1-hour ozone NAAQS and was designed to mitigate the impact of 
transported NOX emissions, one of the precursors of 
ozone.\1\ The rule originally required 22 states--including Tennessee--
and the District of Columbia to amend their SIPs to reduce 
NOX emissions that contribute to ozone nonattainment in 
downwind states. EPA developed the NOX Budget Trading 
Program, an allowance trading program that states could adopt to meet 
their obligations under the NOX SIP Call. The NOX 
Budget Trading Program allowed certain types of sources to participate 
in a regional NOX cap and trade program: Generally electric 
generating units (EGUs) greater than 25 megawatts; and industrial non-
electric generating units, such as boilers and turbines, with a rated 
heat input greater than 250 million British thermal units per hour 
(MMBtu/hr), referred to as ``large non-EGUs.'' \2\ On January 22, 2004, 
EPA approved into the Tennessee SIP the State's NOX Budget 
Trading Program rule.\3\ The NOX Budget Trading Program was 
implemented from 2003 to 2008, and in 2009 it was effectively replaced 
by the ozone season NOX program under CAIR.
---------------------------------------------------------------------------

    \1\ See 63 FR 57356 (October 27, 1998). As originally 
promulgated, the NOX SIP Call also addressed good 
neighbor obligations under the 1997 8-hour ozone NAAQS, but EPA 
subsequently stayed the rule's provisions with respect to that 
standard. 40 CFR 51.121(q).
    \2\ The NOX SIP Call also identified potential 
emissions reductions from other non-EGUs, including cement kilns and 
stationary internal combustion (IC) engines.
    \3\ See 69 FR 3015 (January 22, 2004).
---------------------------------------------------------------------------

    On May 12, 2005 (70 FR 25162), EPA promulgated CAIR to address 
transported emissions that would significantly contribute to downwind 
states' nonattainment or interfere with maintenance of the 1997 ozone 
and fine particulate matter (PM2.5) NAAQS. CAIR required SIP 
revisions in 28 states--including Tennessee--and the District of 
Columbia to reduce emissions of sulfur dioxide (SO2) and/or 
NOX, precursors of PM2.5 (SO2 and 
NOX) and ozone (NOX). Under CAIR, EPA developed 
separate cap-and-trade programs for annual NOX, ozone season 
NOX, and annual SO2 emissions. On April 28, 2006 
(71 FR 25328), EPA also promulgated federal implementation plans (FIPs) 
requiring the EGUs greater than 25 MW in each affected state, but not 
large non-EGUs, to participate in the CAIR trading programs. An 
affected state could comply with the requirements of CAIR either by 
remaining under the FIP, which applied only to EGUs, or by submitting a 
CAIR SIP revision that achieved the required emission reductions from 
EGUs and/or other types of sources. States had the further option to 
remain subject to the CAIR FIP generally, but also adopt 
``abbreviated'' CAIR SIP provisions that made certain modifications to 
the trading programs by allocating allowances among covered units, 
allowing units to opt-in to the trading programs, or expanding 
applicability of the CAIR ozone season NOX trading program 
to the non-EGUs that formerly participated in the NOX Budget 
Trading Program under the NOX SIP Call.
    On August 20, 2007, EPA approved into the Tennessee SIP an 
abbreviated CAIR SIP revision with allowance allocation and opt-in 
provisions.\4\ On November 25, 2009, EPA approved into the Tennessee 
SIP a further abbreviated CAIR SIP revision expanding applicability of 
the CAIR ozone season NOX trading program to NOX 
SIP Call non-EGUs.\5\
---------------------------------------------------------------------------

    \4\ See 72 FR 46388 (August 20, 2007).
    \5\ See 74 FR 61535 (November 25, 2009).
---------------------------------------------------------------------------

    EPA discontinued administration of the NOX Budget 
Trading Program in 2009 upon the start of the CAIR trading programs. 
The NOX SIP Call requirements continued to apply, however, 
and EGUs that formerly participated in the NOX Budget 
Trading Program in almost all states continued to meet their 
NOX SIP Call requirements under the generally more stringent 
requirements of the CAIR ozone season trading program. States needed to 
assess their NOX SIP Call requirements and take other 
regulatory action as necessary to ensure that their obligations for the 
large non-EGUs continued to be met either through submission of a CAIR 
SIP or other NOX regulation. EPA has implementing 
regulations for the NOX SIP Call at 40 CFR 51.121.
    On December 23, 2008, CAIR was remanded to EPA by the United States 
Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in 
North Carolina v. EPA, 531 F.3d 896 (2008), modified on rehearing, 550 
F.3d 1176. This ruling allowed CAIR to remain in effect until a new 
interstate transport rule consistent with the Court's opinion was 
developed. While EPA worked on developing a new rule to address the 
interstate transport of air pollution, the CAIR program continued to be 
implemented with the NOX annual and ozone season programs 
beginning in 2009 and the SO2 annual program beginning in 
2010.
    EPA issued the Cross-State Air Pollution Rule (CSAPR) in July 2011 
to replace CAIR \6\ and address the requirements of the good neighbor 
provision for the 1997 Annual PM2.5 NAAQS, the 2006 24-hour 
PM2.5 NAAQS, and the 1997 8-hour Ozone NAAQS. As amended 
(including by the 2016 CSAPR Update, which addressed good neighbor 
requirements for the 2008 8-hour Ozone NAAQS), CSAPR currently requires 
27 Eastern states--including Tennessee--to limit their statewide 
emissions of SO2 and/or NOX in order to mitigate 
transported air pollution impacting other states' ability to attain or 
maintain the previously-listed NAAQS. As a mechanism for achieving 
compliance with the emissions limitations, CSAPR establishes five 
federal emissions trading programs: A program for annual NOX 
emissions, two geographically separate programs for annual 
SO2 emissions, and two geographically separate programs for 
ozone-season NOX emissions. Currently, through FIP 
provisions established in CSAPR and subsequent SIP revisions from 
various states, each affected state's units are required to participate 
in up to three of the five CSAPR trading programs.
---------------------------------------------------------------------------

    \6\ Implementation of CAIR was formally sunset upon the 
implementation of CSAPR, which--because of extended litigation--was 
delayed until 2015. See 79 FR 71663 (December 3, 2014) and 81 FR 
13275 (March 14, 2016).
---------------------------------------------------------------------------

    The CSAPR trading programs for annual NOX, annual 
SO2, and ozone season NOX are applicable to the 
large EGUs (i.e., EGUs that are greater than 25 megawatts) in each 
covered state, and a state may also expand trading program 
applicability to include certain smaller EGUs. Under CSAPR as 
originally promulgated, states could not expand the applicability under 
CSAPR's ozone season NOX trading program to include non-EGUs 
that formerly participated in the NOX Budget Trading 
Program. Starting in 2017, with implementation of the CSAPR Update, 
states once again have this option, as they did under CAIR.
    With respect to Tennessee, large EGUs in Tennessee are currently 
subject to three of the CSAPR trading programs, including one 
addressing ozone season NOX emissions. Tennessee has not 
chosen to expand CSAPR applicability to small EGUs or non-EGUs.

[[Page 64499]]

II. Tennessee's SIP Submissions and EPA's Analysis

A. Tennessee's Submittal To Address NOX SIP Call 
Requirements and EPA's Analysis

    Via a letter to EPA dated February 27, 2017,\7\ Tennessee provided 
a SIP revision to incorporate a new provision--Tennessee Comprehensive 
Rules and Regulation (TCRR) 1200-03-27-.12, ``NOX SIP Call 
Requirements for Stationary Boilers and Combustion Turbines'' (TN 2017 
NOX SIP Call Rule)--into the SIP. The TN 2017 NOX 
SIP Call Rule establishes a state control program for sources that are 
subject to the NOX SIP Call, but not covered under CSAPR. 
The TN 2017 NOX SIP Call Rule contains several subsections 
that together comprise a non-EGU control program under which Tennessee 
will allocate a specified budget of allowances to affected sources.
---------------------------------------------------------------------------

    \7\ EPA notes that it received the submittal on February 28, 
2017.
---------------------------------------------------------------------------

    Subsections 1200-03-27-.12(1) and 1200-03-27-.12(3) contain the 
basic definitions and applicability defining the program. 1200-03-
27-.12(1) contains the definitions applicable to the section, including 
a definition of affected units under the TN 2017 NOX SIP 
Call Rule as units with maximum design heat input greater than 250 
MMBtu/hr that combust fossil fuel in specified amounts, except units 
that are covered under CSAPR or serve generators producing power for 
sale. 1200-03-27-.12(1) also contains a list of specific ``existing 
affected units,'' \8\ while it defines a ``new affected unit'' as any 
affected unit that is not an existing affected unit. 1200-03-27-.12(3) 
establishes the applicability of the rule to each affected unit and 
each affected facility.
---------------------------------------------------------------------------

    \8\ See Table 1 for the list of existing affected units.
---------------------------------------------------------------------------

    Subsections 1200-03-27-.12(5) and 1200-03-27-.12(6) provide the 
state budget as well as the State's methodology for allocating 
allowances to affected units. 1200-03-27-.12(5) sets the state 
emissions budget for allowance allocations to affected units at 5,666 
tons per control period. 1200-03-27-.12(6)(a) provides that Tennessee 
will allocate NOX allowances in amounts specified in the SIP 
to existing units. The amounts allocated to existing units are 
contained in Tennessee Air Pollution Control Board Order 16-0163, as 
identified in Table 1, below.\9\
---------------------------------------------------------------------------

    \9\ Tennessee included Board Order 16-0163 in its February 2017 
SIP revision as Attachment 3.

    Table 1--Tennessee List of Existing Affected Units and Allocation
                                 Amounts
------------------------------------------------------------------------
                                                            Allocation
           Facility name                    Units             amount
------------------------------------------------------------------------
Packaging Corporation of America..  Unit 17.............              85
Tate & Lyle, Loudon...............  Units 34 and 35.....             264
Resolute FP, US, Inc..............  Units 11 and 12.....             456
Eastman Chemical Company..........  Units 83-23 and 83-            3,047
                                     24; Units 253-25,
                                     Units 253-26, Units
                                     253-27, Units 253-
                                     28, and Units 253-
                                     29; Units 325-30
                                     and 325-31.
The Valero Refining Company--       Unit P049...........              23
 Tennessee, LLC.
Tennessee Valley Authority,         Startup Boilers A1                31
 Cumberland Fossil Plant (startup    and A2.
 boilers).
------------------------------------------------------------------------
New Unit Set-Aside \10\...........  ....................           1,760
------------------------------------------------------------------------
    Total Allowances Allocated....  ....................           5,666
------------------------------------------------------------------------

    1200-03-27-.12(6)(b)-(c) provide the methodology for allocation of 
allowances to new affected units, which are based on NOX 
emission rates for new sources and converted to tons based on heat 
input.
---------------------------------------------------------------------------

    \10\ The New Unit Set Aside is not an ``existing affected 
unit,'' however, it is included to show Tennessee's allocation of 
its entire budget. The New Unit Set Aside is defined as the state 
budget from 1200-03-27-.12(5), minus the amount of allocations to 
existing units in 1200-03-27-.12(6)(a). See 1200-03-27-.12(6)(c)(1).
---------------------------------------------------------------------------

    1200-03-27-.12(7) and 1200-03-27-.12(11) contain provisions 
relating to NOX emission requirements and monitoring and 
reporting. 1200-03-27-.12(7)(a) limits the total tons of NOX 
emissions from a facility to the total number of allowances allocated 
to that facility. 1200-03-27-.12(11) requires units to comply with the 
emissions monitoring, recordkeeping, and reporting requirements of 40 
CFR part 75. 1200-03-27-.12(7)(b) specifies additional reporting and 
recordkeeping requirements related to each facility, which require the 
facility to report its emissions and to generally maintain records for 
at least five years.\11\ 1200-03-27-.12(7)(c) provides the penalties if 
a unit's emissions exceed allocated allowances, and 1200-03-
27-.12(7)(d) provides information related to liability under the Rule.
---------------------------------------------------------------------------

    \11\ EPA notes that the February 27, 2018 SIP submission 
contains paragraph 1200-3-27-.12(7)(b)4. 1200-3-27-.12(7)(b)4 
contained a requirement for sources to report to the Tennessee 
Division of Air Pollution Control, in addition to EPA. However, as 
reporting to EPA continues to be required for sources, Tennessee 
withdrew 1200-3-27-.12(7)(b)4 from the February 27, 2018 submission 
in the July 24, 2018 Letter. As a result, EPA is not acting on the 
withdrawn paragraph.
---------------------------------------------------------------------------

    Other sections in the rule include the following topics: 
Abbreviations (1200-03-27-.12(2)); exemptions for permanently retired 
units (1200-03-27-.12(4)); computation of time under the rule (1200-03-
27-.12(8)); and additional information about the TDEC Technical 
Secretary's actions under the rule (1200-03-27-.12(9) and 1200-03-
27-.12(10)).
    In order to address the requirements of the NOX SIP Call 
for sources that are not covered under a CSAPR trading program for 
ozone season NOX emissions, as described above, SIP 
revisions must provide for enforceable emissions limitations and 
require part 75 monitoring.\12\ The TN 2017 NOX SIP Call 
Rule provides for enforceable emissions limitations by establishing a 
state budget representing the maximum amount of NOX emission 
allowances that may be issued for each control period, allocating the 
allowances to affected units, and requiring units to limit their 
emissions to the number of allowances they hold. The amount of the 
budget matches the portion of the State's total emissions budget 
assigned to non-EGUs under the NOX Budget Trading 
Program.\13\ As discussed above, the TN 2017 NOX SIP Call 
Rule also requires affected units to comply with part 75 monitoring 
(1200-03-27-.12(11)).
---------------------------------------------------------------------------

    \12\ See 40 CFR 51.121(f)(2)(ii) and 51.121(i)(4).
    \13\ See 71 FR 25072 (April 28, 2006).

---------------------------------------------------------------------------

[[Page 64500]]

    While the TN 2017 NOX SIP Call Rule generally addresses 
the NOX SIP Call requirements for non-EGUs, EPA identified 
several potential ambiguities. Accordingly, Tennessee submitted two 
supplemental letters that impact EPA's proposed action.
    First, EPA notes that 1200-03-27-.12(6)(d) provides the TDEC 
Technical Secretary with a mechanism for adjusting the existing units' 
allocation amounts specified in the State's regulations but does not 
explicitly state that Tennessee will provide these changes for approval 
into the SIP. On July 24, 2018, Tennessee submitted a letter clarifying 
that, consistent with 1200-03-27-.12(6)(a), it interprets the provision 
to require that any adjusted allowance allocation amounts for existing 
affected units under 1200-03-27.12(6)(d) be submitted to EPA for 
approval as a SIP revision to be incorporated into the SIP prior to 
allocation. See July 24, 2018 Letter. EPA's proposed action on 
Tennessee's SIP is therefore based on the clarification of the State's 
interpretation of this provision as explained in the State's July 24, 
2018 letter.
    Second, Tennessee's February 27, 2017 submission provides for a 
state control program that is generally applicable to units with a 
maximum design heat input greater than 250 MMBtu/hr, that either 
combust more than 50 percent fossil fuel or are projected to combust 
more than 50 percent fossil fuel, and that are not subject to CSAPR. 
While these applicability criteria would cover all existing Tennessee 
units that have been identified as having obligations under the 
NOX SIP Call and that are not subject to CSAPR, as well as 
most types of potential new units that should be covered, the February 
27, 2017 SIP submission also exempts any unit that serves a generator 
that produces power for sale. Because certain potential new units 
serving generators that produce power for sale could qualify for a 
cogeneration exemption under CSAPR but still have obligations under the 
NOX SIP Call, the February 27, 2017 submission does not 
cover all types of potential new units that must be covered to fully 
address NOX SIP Call obligations. On May 11, 2018, Tennessee 
submitted a commitment letter requesting conditional approval of the 
2017 NOX SIP Call Rule; and committing to provide a SIP 
revision to EPA by April 30, 2019, that addresses this deficiency by 
revising the definition of ``affected unit'' to remove the unqualified 
exclusion for any unit that serves a generator that produces power for 
sale. See May 11, 2018 Letter. In a letter dated October 11, 2018, 
Tennessee revised the commitment date from April 30, 2019, to December 
31, 2019. See October 11, 2018 Letter.
    Based on the State's commitment to submit a SIP revision addressing 
the identified deficiency, EPA is proposing to conditionally approve 
the February 27, 2017 submission, as clarified by the State's July 24, 
2018 Letter. If Tennessee meets its commitment to submit a SIP revision 
addressing the deficiency by December 31, 2019, the TN 2017 
NOX SIP Call Rule will remain a part of the SIP until EPA 
takes final action approving or disapproving the new SIP revision. 
However, if the State fails to submit this revision on or before 
December 31, 2019, the conditional approval will become a disapproval 
and EPA will issue a notice to that effect. If the conditional approval 
becomes a disapproval, the disapproval triggers the FIP requirement 
under CAA section 110(c).
    Last, Tennessee has voluntarily committed to revising potentially 
ambiguous provisions of its regulations at 1200-03-27-.12(6)(c)2.(ii), 
to clarify that the State will allocate allowances for all 3,672 hours 
of the ozone season, and at 1200-03-27.12(11)(a), to clarify that the 
State intends for the Responsible Official to be a designated 
representative as the term is defined in 40 CFR 72 subpart B.\14\ 
Because EPA interprets these provisions, as currently written, in a 
manner consistent with the State's interpretations and intended 
clarifications, EPA's proposed approval is not conditioned upon these 
particular commitments.
---------------------------------------------------------------------------

    \14\ In its May 11, 2018 letter, Tennessee also committed to add 
the simple cycle combustion turbines at Tennessee Valley Authority's 
Allen Fossil Plant to the definition of ``existing affected unit'' 
in 1200-03-27-.12(1). However, in its July 24, 2018 letter, 
Tennessee amended its May 11, 2018 letter and withdrew this 
commitment. Because these particular units are below the 25 MW 
NOX SIP Call applicability threshold for EGUs, inclusion 
of the units is not required under the NOX SIP Call.
---------------------------------------------------------------------------

B. Tennessee's SIP Submission as It Relates to CAIR and EPA's Analysis

    Tennessee's February 27, 2017 submission also seeks to remove the 
SIP-approved portions of the state trading program rules adopted to 
comply with annual CAIR programs from Tennessee's SIP at 1200-03-
14-.04--``CAIR SO2 Annual Trading Program'' and 1200-03-
27-.10--``CAIR NOX Annual Trading Program'' because the CAIR 
annual programs have been replaced by the CSAPR annual programs.\15\ In 
addition, Tennessee's February 27, 2017, submission seeks to remove the 
SIP-approved portions of the State's trading program rules adopted to 
comply with ozone season CAIR programs from Tennessee's SIP at 1200-03-
27-.11--``CAIR NOX Ozone Season Trading Program,'' because 
the CAIR program has been replaced by CSAPR for EGUs, and, if approved, 
Tennessee's state control program would address the outstanding 
NOX SIP Call requirements for non-EGUs.\16\
---------------------------------------------------------------------------

    \15\ See 40 CFR 52.38(a) and 52.39. The SIP-approved portions of 
the State's CAIR annual trading program rules include the allowance 
allocation and opt-in provisions. See 72 FR 46388 (August 20, 2007).
    \16\ See 40 CFR 52.38(b). The SIP-approved portions of the 
State's CAIR ozone season trading program rule include the allowance 
allocation and opt-in provisions and the provisions extending 
applicability to non-EGUs. See 72 FR 46388 (August 20, 2007), 74 FR 
61535 (November 25, 2009).
---------------------------------------------------------------------------

    In this notice, EPA proposes to approve the removal of these CAIR-
related provisions from Tennessee's SIP. As explained above, the D.C. 
Circuit remanded CAIR to EPA in 2008; however, the court left CAIR in 
place while EPA worked to develop a new interstate transport rule. 
CSAPR was promulgated to respond to the Court's concerns and to replace 
CAIR. The implementation of CSAPR was delayed for several years beyond 
its originally expected implementation timeframe of 2012, and 
therefore, the sunsetting of CAIR was also deferred. CAIR was 
implemented through the 2014 compliance periods and was replaced by 
CSAPR on January 1, 2015. EPA promulgated regulations to sunset the 
CAIR trading programs and is no longer administering them.\17\ EPA 
therefore proposes to approve the removal of Tennessee's SIP provisions 
related to CAIR.
---------------------------------------------------------------------------

    \17\ 40 CFR 51.123(ff) and 52.35(f) (SIP and FIP requirements 
related to NOX); 40 CFR 51.124(s) and 52.36(e) (SIP and 
FIP requirements related to SO2).
---------------------------------------------------------------------------

C. Tennessee's Submission To Remove Prior NOX SIP Call 
Provisions and EPA's Analysis

    In a letter dated April 3, 2018,\18\ Tennessee provided a SIP 
revision to remove Tennessee Rule 1200-03-27-.06--``NOX 
Budget Trading Program for State Implementation Plans'' (TN 2003 
NOX Rule). The TN 2003 NOX Rule was approved into 
the Tennessee SIP to address the requirements of the NOX SIP 
Call.\19\ This rule was sunset when Tennessee's rule Section 1200-3-
27.11--``CAIR NOX Ozone Season Trading Program'' was 
approved into its SIP in 2009\20\ through a provision in the adopted 
CAIR rules at 1200-03-27-

[[Page 64501]]

.11(1)(b),\21\ and although the earlier rule has not been implemented 
since that time, it has not been removed from the approved SIP. 
Tennessee provided the April 6, 2018 submission to remove the TN 2003 
NOX Rule in order to avoid any uncertainty that could 
otherwise arise when the state CAIR rule provision sunsetting 
implementation of the TN 2003 NOX Rule is removed from the 
SIP.
---------------------------------------------------------------------------

    \18\ EPA notes that the submittal was received on April 6, 2018.
    \19\ See 69 FR 3016 (January 22, 2004) (with a state-effective 
date of July 27, 2003).
    \20\ See 74 FR 61535 (November 25, 2009).
    \21\ 1200-03-27-.11(1)(b) states: ``The provisions of 1200-03-
27-.06 shall not apply to the control period beginning in 2009 and 
any control period thereafter.''
---------------------------------------------------------------------------

    EPA is proposing to approve the revision to remove the TN 2003 
NOX Rule from the Tennessee SIP because it is consistent 
with the CAA and will provide clarity to affected sources and the 
public. Thus, EPA proposes to conclude that removal of the TN 2003 
NOX Rule from the Tennessee SIP is appropriate.

D. Analysis of NOX Emissions

    Approval of the February 27, 2017 and April 3, 2018, Tennessee SIP 
submittals would not result in increased NOX emissions,\22\ 
and therefore would have no impact on any requirements related to 
attainment, reasonable further progress, or any other NAAQS 
requirements under the CAA. The submittals therefore meet section 
110(l) of the CAA.
---------------------------------------------------------------------------

    \22\ See 1200-03-27-.12(5) (maintaining the NOX SIP 
Call budget for non-EGUs of 5,666 tons NOX per ozone 
season); see also the February 28, 2017, SIP submittal at Attachment 
4 (containing a technical support document that showing that actual 
emissions are not exceeding the non-EGU NOX SIP Call 
budget for Tennessee).
---------------------------------------------------------------------------

III. Incorporation by Reference
    In this document, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference TCRR 1200-03-27-.12--``NOX SIP Call Requirements 
for Stationary Boilers and Combustion Turbines,'' state effective 
February 19, 2017, which establishes a state control program to comply 
with the obligations of the NOX SIP Call (with the exception 
of paragraph 1200-3-27-.12(7)(b)4.). EPA has made, and will continue to 
make, these materials generally available through www.regulations.gov 
and at the EPA Region 4 office (please contact the person identified in 
the For Further Information Contact section of this preamble for more 
information).

IV. Proposed Action

    As described above, EPA is proposing to conditionally approve the 
portion of the February 27, 2017, SIP revision to add TCRR 1200-03-
27-.12--``NOX SIP Call Requirements for Stationary Boilers 
and Combustion Turbines'' (except paragraph 1200-03-27-.12(7)(b)4.) to 
the Tennessee SIP, which establishes a state control program to comply 
with the obligations of the NOX SIP Call, as clarified in 
the July 24, 2018 Letter. If finalized, approval of this portion of the 
February 27, 2017, SIP revision will be conditioned on Tennessee 
submitting by December 31, 2019, a complete SIP revision amending the 
rule's applicability provisions to cover certain potential new units as 
discussed in section II.A. of this proposed action, consistent with the 
State's commitment. In addition, EPA is proposing to approve the 
portion of the February 27, 2017 SIP submission to remove the SIP-
approved portions of the State's CAIR trading program rules from the 
Tennessee SIP at TCRR 1200-03-14-.04--``CAIR SO2 Annual 
Trading Program,'' 1200-03-27-.10--``CAIR NOX Annual Trading 
Program,'' and 1200-03-27-.11--``CAIR NOX Ozone Season 
Trading Program.'' Further, EPA is proposing to approve the April 3, 
2018, SIP revision to remove a previous NOX SIP Call trading 
program at TCRR 1200-03-27-.06--``NOX Budget Trading Program 
for State Implementation Plans.'' EPA requests comment on the proposed 
actions.

V. 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. These actions merely 
propose to approve state law as meeting Federal requirements and do not 
impose additional requirements beyond those imposed by state law. For 
that reason, these proposed actions:
     Are not significant regulatory actions 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 Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory actions 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 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 economically significant regulatory actions based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not significant regulatory actions subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Are not subject to requirements of section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     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, Nitrogen dioxide, Ozone, 
Reporting and recordkeeping requirements, Volatile organic compounds.

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

    Dated: December 6, 2018.
Mary S. Walker,
Acting Regional Administrator, Region 4.
[FR Doc. 2018-27254 Filed 12-14-18; 8:45 am]
 BILLING CODE 6560-50-P


