[Federal Register Volume 78, Number 76 (Friday, April 19, 2013)]
[Proposed Rules]
[Pages 23524-23527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09314]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R04-OAR-2013-0143; FRL-9805-1]
Approval and Promulgation of Implementation Plans; North
Carolina: Deferral of Carbon Dioxide (CO2) Emissions From
Prevention of Significant Deterioration (PSD) Requirements for
Greenhouse Gases (GHG)
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: EPA is proposing to approve a revision to the North Carolina
State Implementation Plan (SIP) submitted by the State of North
Carolina, through the North Carolina Department of Environment and
Natural Resources (NC DENR), on July 30, 2012. The SIP revision
modifies North Carolina's prevention of significant deterioration (PSD)
program to incorporate by reference (IBR) the federal deferral of,
until July 21, 2014, PSD applicability to biogenic carbon dioxide
(CO2) emissions from bioenergy and other biogenic stationary
sources. EPA is proposing to approve North Carolina's SIP revision
because the Agency has preliminarily determined that it is consistent
with the Clean Air Act (CAA or Act) and EPA's new source review (NSR)
permitting regulations.
DATES: Comments must be received on or before May 20, 2013.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2013-0143 by one of the following methods:
1. www.regulations.gov: Follow the on-line instructions for
submitting comments.
2. Email: [email protected].
3. Fax: (404) 562-9019.
4. Mail: EPA-R04-OAR-2013-0143, Regulatory Development Section, Air
Planning Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303-8960.
5. Hand Delivery or Courier: Ms. Lynorae Benjamin, Chief,
Regulatory Development Section, Air Planning Branch, Air, Pesticides
and Toxics Management Division, U.S. Environmental Protection Agency,
Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303-8960. Such
deliveries are only accepted during the Regional Office's normal hours
of operation. The Regional Office's official hours of business are
Monday through Friday, 8:30 to 4:30, excluding federal holidays.
Instructions: Direct your comments to Docket ID No. ``EPA-R04-OAR-
2013-0143.'' EPA's policy is that all comments received will be
included in the public docket without change and may be made available
online at www.regulations.gov, including any personal information
provided, unless the comment includes information claimed to be
Confidential Business Information (CBI) or other information whose
disclosure is restricted by statute. Do not submit through
www.regulations.gov or email, information that you consider to be CBI
or otherwise protected. The www.regulations.gov Web site is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment.
[[Page 23525]]
If you send an email comment directly to EPA without going through
www.regulations.gov, your email address will be automatically captured
and included as part of the comment that is placed in the public docket
and made available on the Internet. If you submit an electronic
comment, EPA recommends that you include your name and other contact
information in the body of your comment and with any disk or CD-ROM you
submit. If EPA cannot read your comment due to technical difficulties
and cannot contact you for clarification, EPA may not be able to
consider your comment. Electronic files should avoid the use of special
characters, any form of encryption, and be free of any defects or
viruses. For additional information about EPA's public docket visit the
EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm.
Docket: All documents in the electronic docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in www.regulations.gov or
in hard copy at the Regulatory Development Section, Air Planning
Branch, Air, Pesticides and Toxics Management Division, U.S.
Environmental Protection Agency, Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303-8960. EPA requests that if at all possible, you
contact the person listed in the FOR FURTHER INFORMATION CONTACT
section to schedule your inspection. The Regional Office's official
hours of business are Monday through Friday, 8:30 to 4:30, excluding
federal holidays.
FOR FURTHER INFORMATION CONTACT: For information regarding the North
Carolina SIP, contact Mr. Richard Wong, Regulatory Development Section,
Air Planning Branch, Air, Pesticides and Toxics Management Division,
U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW.,
Atlanta, Georgia 30303-8960. Mr. Wong's telephone number is (404) 562-
8726; email address: [email protected].
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What action is EPA proposing?
II. What is the background for EPA's proposed action?
III. What is EPA's analysis of North Carolina's SIP revision?
IV. Proposed Action
V. Statutory and Executive Order Reviews
I. What action is EPA proposing?
On July 30, 2012, NC DENR submitted a SIP revision to EPA for
approval into the North Carolina SIP to IBR \1\ the deferral until July
21, 2014, of the application of PSD permitting requirements to biogenic
CO2 emissions from bioenergy and other biogenic stationary
sources as promulgated in the rule entitled ``Deferral for
CO2 Emissions From Bioenergy and Other Biogenic Sources
Under the Prevention of Significant Deterioration (PSD) and Title V
Programs,'' Final Rule, 76 FR 43490, (July 20, 2011) (hereafter
referred to as the ``CO2 Biomass Deferral Rule''). The July
30, 2012, SIP submittal revises North Carolina's air quality rule 15A
North Carolina Administrative Code (NCAC) 02D.0544--Prevention of
Significant Deterioration Requirements for Greenhouse Gases to IBR the
version of 40 CFR 51.166 as of July 20, 2011.\2\ This version of 40 CFR
51.166 includes the July 20, 2011, CO2 Biomass Deferral Rule
revision to the definition of ``subject to regulation'' deferring PSD
applicability to biogenic CO2 emissions from bioenergy and
other biogenic stationary sources, until July 21, 2014. Today, EPA is
proposing to approve North Carolina's July 30, 2012, SIP revision.
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\1\ Throughout this document IBR means incorporate or
incorporates by reference.
\2\ The scope of the 15A NCAC 02D.0544 IBR of 40 CFR 51.166 is
limited to the aspects of the federal regulation related to
CO2 Biomass Deferral Rule revisions. PSD applicability
for all other regulated NSR pollutants, as defined at 40 CFR 51.166
and 52.21, is addressed in the North Carolina SIP by regulation 15A
NCAC 02D.0530.
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II. What is the background for EPA's proposed action?
A. The GHG Tailoring Rule
On June 3, 2010 (effective August 2, 2010), EPA promulgated a final
rulemaking, entitled ``Prevention of Significant Deterioration and
Title V Greenhouse Gas Tailoring Rule; Final Rule'' (hereafter referred
to as the GHG Tailoring Rule), for the purpose of relieving
overwhelming permitting burdens from the regulation of GHG that would,
in the absence of the rule, fall on permitting authorities and sources.
See 75 FR 31514. EPA accomplished this by tailoring the applicability
criteria that determine which GHG emission sources become subject to
the PSD program of the CAA. In particular, EPA established in the GHG
Tailoring Rule a phase-in approach for PSD applicability and
established the first two steps of the phase-in for the largest GHG
emitters.\3\ On, May 17, 2011,\4\ NC DENR submitted a SIP revision to
EPA to IBR into the North Carolina SIP Rule 15 NCAC 02D.0544--the
version of 40 CFR 51.166 as of June 3, 2010, and effective August 3,
2010, which included the GHG Tailoring Rule. EPA took final action to
approve North Carolina's May 17, 2011, SIP revision on October 18,
2011. See 76 FR 64240. Please refer to the GHG Tailoring Rule for
specific details on the PSD applicability provisions.
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\3\ Please refer to the July 12, 2012 (77 FR 41051) rulemaking
finalizing GHG Tailoring Rule Step 3.
\4\ North Carolina's proposed SIP revision incorporated a new
PSD rule into North Carolina's SIP for GHG, at 15A NCAC 02D.0544--
Prevention of Significant Deterioration Requirements for Greenhouse
Gases, to address the thresholds for GHG permitting applicability.
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B. EPA's CO2 Biomass Deferral Rule
In the July 20, 2011, final rulemaking, EPA deferred until July 21,
2014, the consideration of CO2 emissions from bioenergy and
other biogenic sources (hereinafter referred to as ``biogenic
CO2 emissions'') when determining whether a stationary
source meets the PSD and title V \5\ applicability thresholds,
including those for the application of best available control
technology (BACT).\6\ Stationary sources that combust biomass (or
otherwise emit biogenic CO2 emissions) and construct or
modify during the deferral period will avoid the application of PSD to
the biogenic CO2 emissions resulting from those actions. The
deferral applies only to biogenic CO2 emissions and does not
affect non-GHG pollutants or other GHG (e.g., methane and nitrous
oxide) emitted from the combustion of biomass fuel. Also, the deferral
only pertains to biogenic CO2 emissions in the PSD and title
V program and does not pertain to any other EPA programs such as the
GHG Reporting Program.
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\5\ EPA's July 20, 2011, CO2 Biomass Deferral Rule
made changes to the federal PSD and title V permitting programs.
North Carolina's July 30, 2012, submission did not revise the
state's title V program to adopt the CO2 deferral rule.
Furthermore, the title V permitting program is not part of the North
Carolina federally approved SIP.
\6\ As with the Tailoring Rule, the CO2 Biomass
Deferral Rule addresses both PSD and title V requirements.
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Biogenic CO2 emissions are defined as emissions of
CO2 from a stationary source directly resulting from the
combustion or decomposition of biologically-based materials other than
fossil fuels and mineral sources of carbon. Examples of ``biogenic
CO2 emissions'' include, but are not limited to:
CO2 generated from the biological decomposition
of waste in landfills,
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wastewater treatment, or manure management processes;
CO2 from the combustion of biogas collected
from biological decomposition of waste in landfills, wastewater
treatment, or manure management processes;
CO2 from fermentation during ethanol production
or other industrial fermentation processes;
CO2 from combustion of the biological fraction
of municipal solid waste or biosolids;
CO2 from combustion of the biological fraction
of tire-derived fuel; and,
CO2 derived from combustion of biological
material, including all types of wood and wood waste, forest residue,
and agricultural material.
The deferral is intended to be a temporary measure, in effect for
no more than three years, to allow the Agency time to conduct detailed
examination of the science and technical issues related to accounting
for biogenic CO2 emissions, and determine what, if any,
treatment of biogenic CO2 emissions should be in the PSD and
title V program. The biomass deferral rule is not EPA's final
determination on the treatment of biogenic CO2 emissions in
those programs. The Agency plans to complete its science and technical
review and any follow-on rulemakings within the three-year deferral
period and further believes that three years is ample time to complete
these tasks. It is possible that the subsequent rulemaking, depending
on the nature of EPA's determinations, would supersede the biomass
deferral rulemaking and become effective in fewer than three years. In
that event, North Carolina may revise its SIP accordingly.
EPA's final biomass deferral rule is an interim deferral for
biogenic CO2 emissions only and does not relieve sources of
the obligation to meet the PSD and title V permitting requirements for
other pollutant emissions that are otherwise applicable to the source
during the deferral period or that may be applicable to the source at a
future date pending the results of EPA's study and subsequent
rulemaking action. This means, for example, that if the deferral is
applicable to biogenic CO2 emissions from a particular
source during the three-year effective period and the study and future
rulemaking do not provide for a permanent exemption from PSD and title
V permitting requirements for the biogenic CO2 emissions
from a source with particular characteristics, then the deferral would
end for that type of source and its biogenic CO2 emissions
would have to be appropriately considered in any applicability
determinations that the source may need to conduct for future
stationary source permitting purposes, consistent with that subsequent
rulemaking and the final GHG Tailoring Rule (e.g., a major source
determination for title V purposes or a major modification
determination for PSD purposes). EPA also wishes to clarify that the
Agency does not require that a PSD permit issued during the deferral
period be amended or that any PSD requirements in a PSD permit existing
at the time the deferral took effect, such as BACT limitations, be
revised or removed from an effective PSD permit for any reason related
to the deferral or when the deferral period expires.
40 CFR 52.21(w) requires that any PSD permit shall remain in
effect, unless and until it expires or it is rescinded, under the
limited conditions specified in that provision. Thus, a PSD permit that
is issued to a source while the deferral was effective need not be
reopened or amended if the source is no longer eligible to exclude its
biogenic CO2 emissions from PSD applicability after the
deferral expires. However, if such a source undertakes a modification
that could potentially require a PSD permit and the source is not
eligible to continue excluding its biogenic CO2 emissions
after the deferral expires, the source will need to consider its
biogenic CO2 emissions in assessing whether it needs a PSD
permit to authorize the modification.
Any future actions to modify, shorten, or make permanent the
deferral for biogenic sources are beyond the scope of the biomass
deferral action and this proposed approval of the deferral into the
North Carolina SIP, and will be addressed through subsequent
rulemaking. The results of EPA's review of the science related to net
atmospheric impacts of biogenic CO2 and the framework to
properly account for such emissions in title V and PSD permitting
program based on the study are prospective and unknown. Thus, EPA is
unable to predict which biogenic CO2 sources, if any,
currently subject to the deferral as incorporated into the North
Carolina SIP would be subject to any permanent exemptions or which
currently deferred sources would be potentially required to account for
their emissions in the future rulemaking EPA has committed to undertake
for such purposes in three or fewer years. Only in that rulemaking can
EPA address the question of extending the deferral or putting in place
requirements that would have the equivalent effect on sources covered
by the biomass deferral. Once that rulemaking has occurred, North
Carolina may address related revisions to its SIP.
III. What is EPA's analysis of North Carolina's SIP revision?
North Carolina's PSD program consists of Rule 15A NCAC 2D.0530--
Prevention of Significant Deterioration and 15A NCAC 02D.0544--
Prevention of Significant Deterioration Requirements for Greenhouse
Gases, both of which IBR the provisions for the preconstruction PSD
review process as published at 40 CFR 51.166. Rule15A NCAC 2D.0530
applies to major stationary sources having the potential to emit at
least 100-tons per year (tpy) or 250-tpy or more of a regulated NSR
pollutant, depending on the type of source or modifications
constructing in areas designated attainment or unclassifiable with
respect to the national ambient air quality standards. Rule 15A NCAC
02D.0544 (the subject of this proposed rulemaking) only applies to GHG-
emitting sources.
In the July 20, 2011, CO2 Biomass Deferral Rule, similar
to the approach with the Tailoring Rule, EPA incorporated the biomass
deferral into the federal PSD program by amending the definition of
``subject to regulation'' under 40 CFR 51.166 and 52.21, respectively.
North Carolina's July 30, 2012, SIP revision IBR into the North
Carolina SIP 40 CFR 51.166 as of July 20, 2011, which includes the
CO2 Biomass Deferral revision to the definition of ``subject
to regulation'' deferring, until July 21, 2014, PSD applicability to
biogenic CO2 emissions from bioenergy and other biogenic
stationary sources. These changes to North Carolina's Rule 15A NCAC
02D.0544 became state effective on January 28, 2011. EPA is proposing
to approve these changes to North Carolina's Rule 15A NCAC 02D.0544 to
update the State's existing SIP-approved PSD program to be consistent
with federal NSR regulations respecting the CO2 Biomass
Deferral Rule (at 40 CFR 51.166), and the CAA.
IV. Proposed Action
EPA is proposing to approve North Carolina's July 30, 2012, SIP
revision to IBR changes to federal PSD regulations at 40 CFR 51.166
promulgated in the June 3, 2010, CO2 Biomass Deferral Rule.
EPA has made the preliminary determination that this SIP revision, with
regard to the aforementioned proposed actions, is approvable because it
is consistent with section 110 of the CAA and EPA NSR permitting
regulations.
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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. 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. Accordingly, this
proposed 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 proposed action:
Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
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 F43255, 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 CAA; and
does 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).
In addition, this proposed rule does not have tribal implications
as specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Greenhouse gases,
Incorporation by reference, Intergovernmental relations, Reporting and
recordkeeping requirements.
Authority: 42 U.S.C. 7401 et seq.
Dated: April 8, 2013.
A. Stanley Meiburg,
Acting Regional Administrator, Region 4.
[FR Doc. 2013-09314 Filed 4-18-13; 8:45 am]
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