[Federal Register Volume 83, Number 7 (Wednesday, January 10, 2018)]
[Proposed Rules]
[Pages 1212-1215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00036]


=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2017-0255; FRL-9972-79-Region 9]


Air Plan Approval; Arizona; Stationary Sources; New Source 
Review; Ammonia

AGENCY: Environmental Protection Agency (EPA).

ACTION: Supplemental proposed rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is supplementing its 
prior proposed approval of regulatory revisions to the Arizona 
Department of Environmental Quality (ADEQ) portion of the applicable 
Clean Air Act (CAA or Act) state implementation plan (SIP) for the 
State of Arizona. This supplemental proposal is primarily intended to 
make corrections to ADEQ's SIP-approved rules for the issuance of CAA 
New Source Review (NSR) permits for stationary sources, with a focus on 
preconstruction permit requirements under the Act for major stationary 
sources and major modifications of such sources. It proposes 
conditional approval of ADEQ's NSR submittal specifically with respect 
to the CAA requirements related to ammonia as a precursor to 
PM2.5 under the NA-NSR program requirements in CAA section 
189(e). We are seeking comment on our proposed action and plan to 
follow with a final action.

DATES: Any comments must arrive by February 9, 2018.

ADDRESSES: Submit comments, identified by Docket ID No. EPA-R09-OAR-
2017-0255, at https://www.regulations.gov, or via email to 
[email protected]. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be removed or edited from Regulations.gov. For either 
manner of submission, the 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. The EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Lisa Beckham, EPA Region 9, (415) 972-
3811, [email protected].

[[Page 1213]]


SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,'' 
``us,'' and ``our'' refer to the EPA.

Table of Contents

I. The State's Submittal
    A. Which rules did the State submit?
    B. Are there previous versions of the rules in the Arizona SIP?
    C. What is the purpose of the EPA's supplemental proposal?
II. The EPA's Evaluation
    A. How is the EPA evaluating the State's rules?
    B. Do the rules meet the evaluation criteria?
    C. Do the rules meet the evaluation criteria under Sections 
110(l) and 193 of the Clean Air Act?
III. Public Comment and Proposed Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

Definitions

    For this notice, we are giving meaning to certain words or initials 
as follows:
    (i) The words or initials Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.
    (ii) The initials ADEQ mean or refer to the Arizona Department of 
Environmental Quality.
    (iii) The initials CFR mean or refer to Code of Federal 
Regulations.
    (iv) The words EPA, we, us or our mean or refer to the United 
States Environmental Protection Agency.
    (v) The initials FIP mean or refer to Federal Implementation Plan.
    (vi) The initials NAAQS mean or refer to National Ambient Air 
Quality Standards.
    (vii) The initials NA-NSR mean or refer to Nonattainment New Source 
Review.
    (viii) The initials NOX mean nitrogen oxides.
    (ix) The initials NSR mean or refer to New Source Review.
    (x) The initials PM2.5 mean or refer to particulate matter with an 
aerodynamic diameter of less than or equal to 2.5 micrometers (fine 
particulate matter).
    (xi) The initials PSD mean or refer to Prevention of Significant 
Deterioration.
    (xii) The initials SIP mean or refer to State Implementation Plan.
    (xiii) The words State or Arizona mean the State of Arizona, unless 
the context indicates otherwise.
    (xiv) The initials SO2 mean sulfur dioxide.
    (xv) The initials TSD mean or refer to a technical support 
document.
    (xvi) The initials VOC means volatile organic compounds.

I. The State's Submittals

A. Which rules did the State submit?

    On April 28, 2017, ADEQ submitted regulatory revisions for the ADEQ 
portion of the Arizona SIP to the EPA. This SIP revision submittal, 
which is the subject of this supplemental proposal and is referred to 
herein as the ``April 2017 NSR submittal,'' contains revisions to 
ADEQ's rules governing preconstruction review and related permitting 
program requirements. These rule revisions are intended to correct 
deficiencies in ADEQ's SIP-approved NSR program related to the 
requirements under both part C (prevention of significant deterioration 
or PSD) and part D (nonattainment new source review or NA-NSR) of title 
I of the Act, which apply to major stationary sources and major 
modifications of such sources. The preconstruction review and 
permitting programs are often collectively referred to as New Source 
Review or NSR. On June 1, 2017, we proposed approval of these revisions 
into the Arizona SIP. These revisions are necessary to correct several 
deficiencies we identified in a 2015 rule action to update ADEQ's SIP-
approved NSR program as well as certain deficiencies with ADEQ's NSR 
program that were the focus of a 2016 EPA rule action related to 
PM2.5 precursors under the NA-NSR program requirements in 
CAA section 189(e) (referred to hereinafter as our ``2016 
PM2.5 precursor action''). See 82 FR 25213 (June 1, 2017); 
see also 80 FR 67319 (Nov. 2, 2015) and 81 FR 40525 (June 22, 2016). 
For a detailed description of the rules in the April 2017 NSR 
submittal, please refer to Section I.A of our June 1, 2017 proposed 
rule (82 FR 25214).

B. Are there previous versions of the rules in the Arizona SIP?

    As part of our June 1, 2017 proposed action on the April 2017 NSR 
submittal, we identified a number of rules in the Arizona SIP that 
would be superseded or removed from the Arizona SIP if the action were 
finalized as proposed; these rules would generally be replaced by the 
ADEQ rules proposed for approval. Please refer to Section I.B of our 
June 1, 2017 proposed rule for a detailed list of these rules (82 FR 
25215). This supplemental proposal action does not modify the 
particular ADEQ rules that we are proposing to approve into, or remove 
from, the Arizona SIP in our action on the April 2017 NSR submittal.

C. What is the purpose of the EPA's supplemental proposal?

    The purpose of this supplemental proposal is to (1) present our 
evaluation of ADEQ's April 2017 NSR submittal as it relates to ammonia 
as a precursor to PM2.5 under the nonattainment NSR (NA-NSR) 
program requirements at CAA section 189(e) and EPA's implementing 
regulations; (2) discuss our proposed conditional approval action 
related to this issue, including the basis for this action; and (3) 
provide notice of and seek public comment on our proposed action.

II. The EPA's Evaluation

A. How is the EPA evaluating the State's rules?

    Section II.A of our June 1, 2017 proposed rule discusses our 
evaluation criteria for the April 2017 NSR submittal in detail. See 82 
FR 25215. Generally, the EPA has reviewed the provisions in the April 
2017 NSR submittal for compliance with the CAA's general requirements 
for SIPs in CAA section 110(a)(2), the EPA's regulations for stationary 
source permitting programs in 40 CFR part 51, subpart I, and the CAA 
requirements for SIP revisions in CAA section 110(l) and 193.
    For this supplemental proposal, our review focuses on one issue 
addressed in our 2016 PM2.5 precursor action (81 FR 40525), 
which finalized a limited disapproval action for ADEQ's NA-NSR program 
specifically based on our finding that ADEQ's program did not fully 
address fine particulate matter (PM2.5) precursors as 
required by section 189(e) of the Act for the Nogales and West Central 
Pinal PM2.5 nonattainment areas. This action triggered an 
obligation on the EPA to promulgate a Federal Implementation Plan (FIP) 
to address this deficiency unless the State of Arizona corrects the 
deficiency, and the EPA approves the related plan revisions, within two 
years of the final action. In addition, to avoid sanctions under 
section 179 of the Act, ADEQ has 18 months from the July 22, 2016 
effective date of our 2016 PM2.5 precursor action to correct 
the deficiency as it relates to part D of title I of the Act.

B. Do the rules meet the evaluation criteria?

    In this action, we are supplementing our prior proposal only as it 
relates to specific deficiencies with ADEQ's NA-NSR rules identified in 
our 2016 PM2.5 precursor action concerning ammonia as a 
precursor to PM2.5. As part of our review of the April 2017 
NSR submittal culminating in our June 1, 2017 proposed rule, we 
considered whether the ADEQ rule revisions in the April 2017 NSR 
submittal met the applicable requirements under section 189(e) of the 
Act and the associated regulatory provisions for PM2.5 for 
the Nogales and West Central Pinal PM2.5 nonattainment areas 
that were identified as deficiencies in our 2016 PM2.5 
precursor action.

[[Page 1214]]

These deficiencies were related to our finding that ADEQ's NSR program 
did not contain rules regulating volatile organic compounds (VOCs) or 
ammonia as PM2.5 precursors under the NA-NSR program as 
required by CAA section 189(e), nor did the ADEQ NSR SIP submittal 
under consideration at that time include a showing that the regulation 
of VOCs and ammonia was not necessary under section 189(e) of the Act. 
See 81 FR 40526.
    As discussed in the May 2017 Technical Support Document (TSD) 
supporting our June 1, 2017 proposed rule action on the April 2017 NSR 
submittal, on August 24, 2016, the EPA finalized regulatory 
requirements for SIPs related to the 2012 PM2.5 National 
Ambient Air Quality Standards (NAAQS), which became effective on 
October 24, 2016 (PM2.5 Implementation Rule). 81 FR 58010. 
The PM2.5 Implementation Rule includes provisions that 
address the permitting requirements for PM2.5 precursors for 
major stationary sources in PM2.5 nonattainment areas under 
section 189(e) of the Act. The EPA's NA-NSR regulations as amended by 
the PM2.5 Implementation Rule provide that PM2.5 
precursors in PM2.5 nonattainment areas include nitrogen 
oxides (NOX), VOCs, sulfur dioxide (SO2) and 
ammonia. See 40 CFR 51.165(a)(1)(xxxvii)(C)(2). Our NA-NSR regulations 
further provide that SIPs must require that the control requirements of 
40 CFR 51.165 applicable to major stationary sources and major 
modifications of PM2.5 also apply to major stationary 
sources and major modifications of PM2.5 precursors in a 
PM2.5 nonattainment area, except that a reviewing authority 
may exempt new major stationary sources and major modifications of a 
particular precursor from the requirements of 40 CFR 51.165 for 
PM2.5 if the NA-NSR precursor demonstration submitted to and 
approved by the EPA Administrator shows that such sources do not 
contribute significantly to PM2.5 levels that exceed the 
standard in the area. See 40 CFR 51.165(a)(13).
    With respect to the April 2017 NSR submittal, in our evaluation 
that culminated in our June 1, 2017 proposed approval action, we found 
that ADEQ had submitted an updated NA-NSR program that included the 
permitting requirements for PM2.5 precursors necessary to 
satisfy the requirements of CAA section 189(e) and the PM2.5 
Implementation Rule, except for a particular requirement pertaining to 
ammonia as a precursor to PM2.5. See 80 FR at 25219; May 
2017 TSD at 21-22. Specifically, the NA-NSR regulations relating to 
PM2.5 precursors require that, for the purposes of applying 
the requirements of 40 CFR 51.165(a)(13) to modifications at existing 
major stationary sources of ammonia located in a PM2.5 
nonattainment area, if the SIP requires that the control requirements 
of 40 CFR 51.165 apply to major stationary sources and major 
modifications of ammonia as a regulated NSR pollutant (as a 
PM2.5 precursor), the plan shall also define ``significant'' 
for ammonia for that area, subject to the approval of the EPA 
Administrator. See 40 CFR 51.165(a)(1)(x)(F). We found that while 
ADEQ's updated NA-NSR program, as reflected in the April 2017 NSR 
submittal, includes ammonia as a precursor to PM2.5 in 
PM2.5 nonattainment areas (at R18-2-101(124)(a)(iv) in the 
definition of the term ``regulated NSR pollutant''), the rules in the 
April 2017 NSR submittal do not define the term ``significant'' for 
purposes of applying the requirements of 40 CFR 51.165(a)(13) to 
modifications at existing major stationary sources of ammonia located 
in a PM2.5 nonattainment area, as required by 40 CFR 
51.165(a)(1)(x)(F). See May 2017 TSD at 21-22. We noted in our June 1, 
2017 proposal that ADEQ intended to address this deficiency in a 
separate SIP submittal. See 82 FR 25219.
    To address this remaining deficiency, in a letter dated December 6, 
2017, ADEQ committed to adopt revisions to provisions in R18-2-101 and/
or make other specific demonstrations consistent with 40 CFR 
51.165(a)(1)(x)(F) and/or 40 CFR 51.165(a)(13) to satisfy the 
requirements of section 189(e) and the PM2.5 Implementation 
Rule governing ammonia as a precursor to PM2.5 under the NA-
NSR program. See Letter from Timothy S. Franquist, Director, Air 
Quality Division, ADEQ to Alexis Strauss, Acting Regional 
Administrator, EPA Region 9, dated Dec. 6, 2017. ADEQ committed in this 
letter to take certain specific actions, including the submittal of the 
required rule and/or demonstration to the EPA by March 31, 2019, or 
within one year from the date on which the EPA takes final action on 
the April 2017 NSR submittal, whichever is earlier. Accordingly, 
pursuant to section 110(k)(4) of the Act, the EPA is proposing a 
conditional approval of ADEQ's NA-NSR program solely as it pertains to 
section 189(e) of the Act and the associated regulatory requirements 
for ammonia as a PM2.5 precursor. We are proposing to 
conditionally approve the April 2017 NSR submittal with respect to this 
issue because ADEQ's 2017 NSR submittal largely includes the 
requirements for ammonia as a PM2.5 precursor required under 
section 189(e) of the Act and the associated regulatory requirements, 
and ADEQ's December 6, 2017 commitment letter provides adequate 
assurance that the one deficiency concerning ammonia as a 
PM2.5 precursor will be addressed in a timely manner, 
consistent with CAA section 110(k)(4).\1\ We conclude that if ADEQ 
submits the rule revisions and/or demonstrations that it has committed 
to submit by the deadline that it has committed to meet, then this 
deficiency will be cured. However, if ADEQ fails to submit these 
revisions and/or demonstrations within the required timeframe, the 
conditional approval will automatically become a disapproval for the 
specific issue of whether ADEQ's NA-NSR program meets the requirements 
of section 189(e) of the Act with respect to ammonia as a 
PM2.5 precursor, and the EPA will issue a finding of 
disapproval. The EPA is not required to propose the finding of 
disapproval.
---------------------------------------------------------------------------

    \1\ We also note that it is our understanding that there are 
currently no major stationary sources of ammonia under ADEQ's 
jurisdiction, nor are there any NSR permit applications currently 
under review by ADEQ for a proposed major stationary source of 
ammonia. While ADEQ's NA-NSR program currently does not define the 
level that is considered ``significant'' for ammonia as a precursor 
to PM2.5, the federal NA-NSR regulations at 40 CFR 
51.165(a)(1)(x)(F) require this definition to potentially apply only 
to major sources of ammonia that may undertake modifications. 
Because there are no existing or currently proposed major sources of 
ammonia under ADEQ's jurisdiction, there are no sources that could 
potentially trigger the application of any such ``significant'' 
threshold for ammonia in the near future in the PM2.5 
nonattainment areas under ADEQ's jurisdiction.
---------------------------------------------------------------------------

C. Do the rules meet the evaluation criteria under Sections 110(l) and 
193 of the Clean Air Act?

    Please see Section II.G of our June 1, 2017 proposed rule that 
discusses our determination that the April 2017 NSR submittal meets the 
evaluation criteria under Sections 110(l) and 193 of the Act and that 
we can approve the April 2017 NSR submittal under Sections 110(l) and 
193 of the Act. See 82 FR 25220. This supplemental proposal does not 
change our prior determinations in this regard with respect to the 
April 2017 NSR submittal.

III. Public Comment and Proposed Action

    In conclusion, we have determined that the April 2017 NSR 
submittal, in conjunction with the commitment made by ADEQ in its 
December 6, 2017 commitment letter, adequately addresses the remaining 
deficiency related to section 189(e) of the Act and the associated 
regulatory requirements

[[Page 1215]]

for ammonia as a precursor to PM2.5 in PM2.5 
nonattainment areas. Accordingly, as authorized by section 110(k)(4) of 
the Act, the EPA proposes to conditionally approve the NA-NSR component 
of ADEQ's April 2017 NSR submittal solely with respect to ammonia as a 
PM2.5 precursor. While we cannot grant full approval of the 
submittal at this time with respect to this issue, ADEQ has 
satisfactorily committed to address this deficiency by providing the 
EPA with a SIP submittal by March 31, 2019, or within one year from the 
date on which the EPA takes final action on the April 2017 NSR 
submittal, whichever is earlier.
    As noted previously, on June 1, 2017, we proposed full approval of 
all other aspects of ADEQ's April 2017 NSR submittal, including but not 
limited to revisions to ADEQ's NA-NSR program and the regulation of 
PM2.5 precursors other than ammonia in accordance with 
section 189(e) of the Act. Today's action does not modify the findings 
we made in that proposed action, and through this supplemental 
proposal, we are not reopening or otherwise seeking public comment on 
any other issues or findings in that June 1, 2017 proposed action.
    We will accept comments from the public on this supplemental 
proposal until February 9, 2018.

IV. Incorporation by Reference

    This action supplements our prior proposed rule where the EPA has 
proposed to include in a final EPA rule regulatory text that includes 
incorporation by reference. This action does not propose additional 
material for incorporation by reference.

V. Statutory and Executive Order Reviews

    Under the CAA, the EPA 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 approve state choices, 
provided that they meet the criteria of the Act. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Is not an Executive Order 13771 (82 FR 9339, February 3, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     Does not provide the 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).

In addition, 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. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Carbon monoxide, Incorporation by reference, 
Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate 
matter, Reporting and recordkeeping requirements, Sulfur dioxide, 
Volatile organic compounds.

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

    Dated: December 20, 2017.
Alexis Strauss,
Acting Regional Administrator, Region IX.
[FR Doc. 2018-00036 Filed 1-9-18; 8:45 am]
 BILLING CODE 6560-50-P


