[Federal Register Volume 84, Number 163 (Thursday, August 22, 2019)]
[Proposed Rules]
[Pages 43738-43741]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17804]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2018-0713: FRL-9998-36-Region 9]


Revisions to California State Implementation Plan; Antelope 
Valley Air Quality Management District and Ventura County Air Pollution 
Control District; Nonattainment New Source Review Requirements for the 
2008 8-Hour Ozone Standard

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve two state implementation plan (SIP) revisions submitted by the 
State of California addressing the nonattainment new source review 
(NNSR) requirements for the 2008 8-hour ozone National Ambient Air 
Quality Standards (NAAQS) and one SIP revision regarding a permit rule. 
These SIP revisions address the Antelope Valley Air Quality Management 
District (AVAQMD or District) and Ventura County Air Pollution Control 
District (VCAPCD or District) portions of the California SIP. This 
action is being taken pursuant to the Clean Air Act (CAA or ``Act'') 
and its implementing regulations.

DATES: Any comments must arrive by September 23, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R09-
OAR-2018-0713 at https://www.regulations.gov, or via email to 
R9AirPermits@epa.gov. 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://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Manny Aquitania, EPA Region IX, 75 
Hawthorne St., San Francisco, CA 94105; (415) 972-3977, 
aquitania.manny@epa.gov.

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

Table of Contents

I. Background and Purpose
II. The State's Submittal
    A. What did the State submit?
    B. What is the purpose of the submitted certification letters?
    C. What is the purpose of the submitted permit rule?
III. Analysis of Nonattainment New Source Review Requirements
    A. Antelope Valley Air Quality Management District (AVAQMD)
    B. Ventura County Air Pollution Control District (VCAPCD)
IV. Proposed Action and Public Comment
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Background and Purpose

    On May 10, 2019, EPA published a notice of proposed rulemaking 
regarding the NNSR requirements for the 2008 8-hour ozone NAAQS and one 
SIP revision regarding a permit rule. The EPA received one comment, 
stating that Section V, Incorporation by Reference of the proposed 
rule, contained a minor administrative error regarding what provisions 
were to be incorporated by reference. In response, Section V of today's 
Federal Register notice now clearly states we are proposing to 
incorporate into the SIP Ventura County Rule 10, ``Required Permits''.
    On March 12, 2008, the EPA promulgated a revised 8-hour ozone NAAQS 
of 0.075 parts per million (ppm).\1\ Upon promulgation of a new or 
revised NAAQS, the CAA requires the EPA to designate as nonattainment 
any area that is violating the NAAQS based on the three most recent 
years of ambient air quality data. The two California air districts 
that are subject to this action were designated nonattainment for the 
2008 8-hour ozone NAAQS on April 30, 2012, using years 2009-2011 
ambient air quality data.\2\ At the time of designation, the AVAQMD was 
classified as a severe ozone nonattainment area as part of the Mojave 
Desert Air Basin and VCAPCD was classified as a serious ozone 
nonattainment area as part of the South Central Coast Air Basin.
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    \1\ 73 FR 16436 (March 27, 2008).
    \2\ 77 FR 30088 (May 21, 2012).

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[[Page 43739]]

    On March 6, 2015, the EPA issued a final rule entitled, 
``Implementation of the 2008 National Ambient Air Quality Standards for 
Ozone: State Implementation Plan Requirements'' (``SIP Requirements 
Rule''), which establishes the requirements and deadlines that state, 
tribal, and local air quality management agencies must meet as they 
develop implementation plans for areas where ozone concentrations 
exceed the 2008 8-hour ozone NAAQS.\3\ Based on the initial 
nonattainment designations for the 2008 8-hour ozone standard, each 
District was required to make a SIP revision addressing NNSR no later 
than July 20, 2015.\4\ This requirement may be met by submitting a SIP 
revision consisting of a new or revised NNSR permit program, or an 
analysis demonstrating that the existing SIP-approved NNSR permit 
program meets the applicable 2008 ozone requirements and a letter 
certifying the analysis.
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    \3\ 80 FR 12263 (March 6, 2015). The SIP Requirements Rule 
addresses a range of nonattainment area SIP requirements for the 
2008 ozone NAAQS, including requirements pertaining to attainment 
demonstrations, reasonable further progress (RFP), reasonably 
available control technology, reasonably available control measures, 
major new source review, emission inventories, and the timing of SIP 
submissions and of compliance with emission control measures in the 
SIP. The rule also revokes the 1997 ozone NAAQS and establishes 
anti-backsliding requirements.
    \4\ 40 CFR 51.1114.
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    On February 3, 2017, the EPA issued a final rule entitled, 
``Findings of Failure to Submit State Implementation Plan Submittals 
for the 2008 Ozone National Ambient Air Quality Standards'' (``FFS 
Rule''). The rule found that certain state and local air agencies, 
including the AVAQMD and VCAPCD, had failed to submit a SIP revision in 
a timely manner to satisfy specific New Source Review requirements that 
apply to nonattainment areas. The rule established certain deadlines 
for the imposition of sanctions, if a state does not submit a timely 
SIP revision addressing the requirements for which the finding was 
made, and for the EPA to promulgate a federal implementation plan (FIP) 
to address any outstanding SIP requirements.

II. The State's Submittal

A. What did the State submit?

    Table 1 lists the dates the submitted 2008 Ozone Certification 
letters and permit rule addressed by this proposal were adopted by each 
air District and submitted by the California Air Resources Board 
(CARB), the agency responsible for California SIP submittals.

                                             Table 1--SIP Submittals
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                                                                                     Adoption/
               District                    Rule No.            Rule title           amend date    Submittal date
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AVAQMD................................             N/A  2008 Ozone Certification       7/17/2018       8/31/2018
VCAPCD................................             N/A  2008 Ozone Certification       7/31/2018       8/31/2018
VCAPCD................................              10  Permits Required........       4/13/2004       7/19/2004
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    On August 10, 2004, CARB's July 19, 2004 submittal of VCAPCD's Rule 
10 was deemed to meet the completeness criteria in 40 CFR part 51, 
appendix V, which must be met before formal EPA review. On September 6, 
2018, CARB's August 31, 2018 submittal of AVAQMD's and VCAPCD's 2008 
Certification letters were also deemed to meet the completeness 
criteria in 40 CFR part 51, appendix V.

B. What is the purpose of the submitted certification letters?

    The submittal from each District is intended to satisfy the SIP 
Requirement Rule that requires states to make a SIP revision addressing 
NNSR and the FFS Rule that requires each District to make a SIP 
submittal by September 6, 2018. The SIP for each District currently 
contains approved NNSR permit programs based on their nonattainment 
classification for the 1997 8-hour ozone NAAQS. The submitted 
certification letters provide a mechanism for each District to satisfy 
the 40 CFR 51.1114 submittal requirements based on their 2008 8-hr 
ozone nonattainment designations. EPA's analysis of how these SIP 
revisions address the NNSR requirements for the 2008 8-hour ozone NAAQS 
is provided below.

C. What is the purpose of the submitted permit rule?

    The submittal of Rule 10 by the VCAPCD is intended to clarify the 
expiration date of a Part 70 permit. The District revised Section 3 of 
Rule 10, pertaining to the expiration of a ``Permit to Operate'' to 
clarify that a Part 70 permit does not expire annually. This revision 
clarifies that a Part 70 permit expires only if not renewed in 
accordance with the requirements of VCAPCD's Rule 30, ``Permit 
Renewal''.

III. Analysis of Nonattainment New Source Review Requirements

    The minimum SIP requirements for NNSR permitting programs for the 
2008 8-hour ozone NAAQS are contained in 40 CFR 51.165. These NNSR 
program requirements include those promulgated in the ``Phase 2 Rule'' 
implementing the 1997 8-hour ozone NAAQS \5\ and the SIP Requirements 
Rule implementing the 2008 8-hour ozone NAAQS. Under the Phase 2 Rule, 
the SIP for each ozone nonattainment area must contain NNSR provisions 
that: (1) Set major source thresholds for nitrogen oxides 
(NOX) and volatile organic compounds (VOC) pursuant to 40 
CFR 51.165(a)(1)(iv)(A)(1)(i)-(iv) and (2); (2) classify physical 
changes at a major source if the change would constitute a major source 
by itself pursuant to 40 CFR 51.165(a)(1)(iv)(A)(3); (3) consider any 
significant net emissions increase of NOX as a significant 
net emissions increase for ozone pursuant to 40 CFR 51.165(a)(1)(v)(E); 
(4) consider any increase of VOC emissions in extreme ozone 
nonattainment areas as significant net emissions increases and major 
modifications for ozone pursuant to 40 CFR 51.165(a)(1)(v)(F); (5) set 
significant emissions rates for VOC and NOX as ozone 
precursors pursuant to 40 CFR 51.165(a)(1)(x)(A)-(C) and (E); (6) 
contain provisions for emissions reductions credits pursuant to 40 CFR 
51.165(a)(3)(ii)(C)(1)-(2); (7) provide that the requirements 
applicable to VOC also apply to NOX pursuant to 40 CFR 
51.165(a)(8); and (8) set offset ratios for VOC and NOX 
pursuant to 40 CFR 51.165(a)(9)(ii)-(iv). Under the SIP Requirements 
Rule, the SIP for each ozone nonattainment area designated 
nonattainment for the 2008 8-hour ozone NAAQS and designated 
nonattainment for the 1997 ozone NAAQS as of April 6, 2015, must also 
contain NNSR provisions that include the anti-backsliding requirements 
at 40 CFR 51.1105.
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    \5\ 70 FR 71612 (November 29, 2005).

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[[Page 43740]]

A. Antelope Valley Air Quality Management District (AVAQMD)

    The AVAQMD's longstanding SIP-approved NNSR program,\6\ established 
in Regulation XIII, ``New Source Review,'' of the AVAQMD's Rules and 
Regulations, applies to the construction and modification of stationary 
sources, including major stationary sources in nonattainment areas 
under its jurisdiction. In addition, the District has submitted 
revisions to their NSR program that update and clarify certain 
provisions.\7\ The AVAQMD's submitted SIP revision includes a 
demonstration, consisting of a table listing each of the Phase 2 Rule 
and SIP Requirements Rule NNSR program requirements, and a citation to 
the specific provision of the SIP-approved or SIP-submitted rule 
satisfying the requirement. The submittal also includes a certification 
by the AVAQMD that the cited rules meet the federal NNSR requirements 
for the applicable ozone nonattainment designation. These documents are 
available in the docket for this action. EPA has reviewed the 
demonstration and cited program elements intended to meet the federal 
NNSR requirements and is proposing to approve the AVAQMD's submittal 
because the current SIP-approved or SIP-submitted NSR program contains 
all the Phase 2 Rule and SIP Requirements Rule NNSR program 
requirements for a severe ozone nonattainment area.
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    \6\ 61 FR 64291 (December 4, 1996).
    \7\ New Rule 1305--Emission Offsets was submitted to the EPA by 
CARB on October 30, 2001 and rule revisions were submitted on 
December 29, 2006.
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B. Ventura County Air Pollution Control District (VCAPCD)

    The VCAPCD's longstanding SIP-approved NNSR program,\8\ established 
in Rules 26-26.11, applies to the construction and modification of 
stationary sources, including major stationary sources in nonattainment 
areas under its jurisdiction. The VCAPCD's submitted SIP revision 
includes a demonstration, consisting of a table listing each of the 
Phase 2 Rule and SIP Requirements Rule NNSR program requirements, and a 
citation to the specific provision of the rule satisfying the 
requirement. The submittal also includes a certification by the VCAPCD 
that the cited rules meet the federal NNSR requirements for the 
applicable ozone nonattainment designation. These documents are 
available in the docket for this action. The EPA has reviewed the 
demonstration and cited program elements intended to meet the federal 
NNSR requirements and is proposing to approve the VCAPCD's submittal 
because the current SIP-approved NSR program contains all the Phase 2 
Rule and SIP Requirements Rule NNSR program requirements for a serious 
ozone nonattainment area.
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    \8\ 65 FR 76567 (December 7, 2000), 68 FR 9561 (February 28, 
2003), 75 FR 1284 (January 11, 2010).
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    The EPA has determined that the revision to Rule 10 provides 
clarity pertaining to the expiration of permits issued by the District. 
Therefore, we find this revision acceptable for incorporation into the 
SIP by reference.

IV. Proposed Action and Public Comment

    The EPA is proposing to approve SIP revisions addressing the NNSR 
requirements for the 2008 8-hour ozone NAAQS for the AVAQMD and VCAPCD, 
as well as VCAPCD Rule 10. In support of this proposed action, we have 
concluded that our approval would comply with section 110(l) of the Act 
because the submittals will not interfere with continued attainment of 
the NAAQS in each District. The EPA has concluded that the State's 
submission fulfills the 40 CFR 51.1114 revision requirement and meets 
the requirements of CAA section 110 and the minimum SIP requirements of 
40 CFR 51.165. The intended effect of our proposed action is to approve 
the submitted certifications as meeting the applicable Phase 2 Rule 
requirements. If we finalize this action as proposed, our action would 
incorporate these certifications and Rule 10 into the federally-
enforceable SIP and be codified through revisions to 40 CFR 52.220 
(Identification of plan--in part).
    We will accept comments from the public on this proposal until 
September 23, 2019.
    In addition, the FFS Rule issued by the EPA on February 3, 2017, 
started an 18-month sanctions clock and a 24-month FIP clock.\9\ The 
18-month sanctions clock was stopped upon receipt of California's SIP 
revisions and our determination that the submittals were complete. We 
determined the submittals for AVAQMD and VCAPCD were complete on 
September 6, 2018. The 24-month FIP clock will stop upon the effective 
date of our final approval.
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    \9\ 82 FR 9158, (February 3, 2017).
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V. Incorporation by Reference

    In this rule, the 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, the EPA is proposing to incorporate by 
reference the VCAPCD rule listed in Table 1 of this preamble. The EPA 
has made, and will continue to make, this material available 
electronically through https://www.regulations.gov and at the EPA 
Region IX Office (please contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section of this preamble for more 
information).

VI. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, The EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air 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);
     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

[[Page 43741]]

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, 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: August 6, 2019.
Michael Stoker,
Regional Administrator, Region IX.
[FR Doc. 2019-17804 Filed 8-21-19; 8:45 am]
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