[Federal Register Volume 78, Number 167 (Wednesday, August 28, 2013)]
[Proposed Rules]
[Pages 53113-53124]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21010]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R09-OAR-2013-0534; FRL-9900-35-Region 9]


Approval and Promulgation of Implementation Plans; California; 
San Joaquin Valley; Contingency Measures for the 1997 PM2.5 Standards

AGENCY: U.S. Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a state implementation plan (SIP) 
revision submitted by the State of California to address Clean Air Act 
nonattainment area contingency measure requirements for the 1997 annual 
and 24-hour fine particulate matter (PM2.5) national ambient 
air quality standards in the San Joaquin Valley. Final approval of this 
SIP revision would terminate the sanctions clocks and a federal 
implementation plan clock that were triggered by EPA's partial 
disapproval of a related SIP submission on November 9, 2011 (76 FR 
69896).

DATES: Any comments must arrive by September 27, 2013.

ADDRESSES: Submit comments, identified by docket number EPA-R09-OAR-
2013-0534, by one of the following methods:
     Federal eRulemaking Portal: www.regulations.gov. Follow 
the online instructions.
     Email: [email protected].
     Mail or deliver: Frances Wicher, Office of Air Planning 
(AIR-2), U.S. Environmental Protection Agency Region 9, 75 Hawthorne 
Street, San Francisco, CA 94105.
    Instructions: All comments 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 Confidential Business Information (CBI) or other information 
whose disclosure is restricted by statute. Information that you 
consider CBI or otherwise protected should be clearly identified as 
such and should not be submitted through www.regulations.gov or email. 
The www.regulations.gov Web site is an ``anonymous access'' system, and 
EPA will not know your identity or contact information unless you 
provide it in the body of your comment. If you send email directly to 
EPA, your email address will be automatically captured and included as 
part of the public comment. If EPA cannot read your comments due to 
technical difficulties and cannot contact you for clarification, EPA 
may not be able to consider your comment.
    Docket: The index to the docket (docket number EPA-R09-OAR-2013-
0534) for this action is available electronically on the 
www.regulations.gov Web site and in hard copy at EPA Region 9, 75 
Hawthorne Street, San Francisco, California, 94105. While all documents 
in the docket are listed in the index, some information may be publicly 
available only at the hard copy location (e.g., copyrighted material), 
and some may not be publicly available at either location (e.g., CBI). 
To inspect the hard copy materials, please schedule an appointment 
during normal business

[[Page 53114]]

hours with the contact listed in the FOR FURTHER INFORMATION CONTACT 
section below.

FOR FURTHER INFORMATION CONTACT: Frances Wicher, Air Planning Office 
(AIR-2), U.S. Environmental Protection Agency, Region 9, (415) 972-
3957, [email protected].

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

Table of Contents

I. Background
II. Clean Air Act Requirements for Contingency Measures
III. Review of the Submitted San Joaquin Valley PM2.5 
Contingency Measure SIP
    A. The Submitted San Joaquin Valley PM2.5 Contingency 
Measure SIP
    B. Clean Air Act Procedural Requirements for SIP Submissions
    C. Evaluation of the Contingency Measure SIP
    1. Contingency Measures for Failure To Meet the 2012 Reasonable 
Further Progress Milestone
    2. Contingency Measures for Failure To Attain
    D. Clean Air Act Section 110(l)
IV. Proposed Actions and Request for Public Comment
V. Statutory and Executive Order Reviews

I. Background

    On July 18, 1997, EPA established new national ambient air quality 
standards (NAAQS) for PM2.5 (particulate matter with a 
diameter of 2.5 microns or less) including annual standards of 15.0 
micrograms per cubic meter ([micro]g/m\3\) based on a 3-year average of 
annual mean PM2.5 concentrations and 24-hour (daily) 
standards of 65 [micro]g/m\3\ based on a 3-year average of the 98th 
percentile of 24-hour concentrations. See 62 FR 36852 and 40 CFR 50.7. 
Effective April 5, 2005, EPA designated the San Joaquin Valley (SJV) in 
California as nonattainment for the 1997 annual and 24-hour 
PM2.5 standards. See 70 FR 944 (January 5, 2005) and 40 CFR 
81.305.\1\ The SJV PM2.5 nonattainment area is located in 
the southern half of California's central valley and includes all or 
part of eight counties: San Joaquin, Stanislaus, Merced, Madera, 
Fresno, Tulare, Kings, and the valley portion of Kern. The local air 
district with primary responsibility for developing the state 
implementation plan (SIP) to attain the PM2.5 NAAQS in this 
area is the San Joaquin Valley Unified Air Pollution Control District 
(SJVUAPCD or ``District'').
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    \1\ EPA has also designated the San Joaquin Valley as 
nonattainment for the more stringent 24-hour PM2.5 NAAQS 
of 35 [micro]g/m\3\, which EPA promulgated on October 17, 2006 and 
codified at 40 CFR 50.13 (74 FR 58688, November 13, 2009). In this 
preamble, all references to the PM2.5 NAAQS, unless 
otherwise specified, are to the 1997 24-hour PM2.5 
standards of 65 [micro]g/m\3\ and annual standards of 15 [micro]g/
m\3\ as codified in 40 CFR 50.7.
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    California has made numerous SIP submittals to address the SJV's 
nonattainment designation for the 1997 PM2.5 NAAQS. The two 
principal ones are the SJVUAPCD's ``2008 PM2.5 Plan,'' 
submitted on June 30, 2008, and the California Air Resources Board's 
(CARB's) ``State Strategy for California's 2007 State Implementation 
Plan'' (``2007 State Strategy''), submitted on November 16, 2007 and 
revised in 2009 and 2011 through CARB's ``2009 State Strategy Status 
Report'' \2\ and ``2011 Progress Report.'' \3\
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    \2\ CARB, ``Status Report on the State Strategy for California's 
2007 State Implementation Plan (SIP) and Proposed Revision to the 
SIP Reflecting Implementation of the 2007 State Strategy,'' dated 
March 24, 2009, adopted April 24, 2009.
    \3\ CARB, ``Progress Report on Implementation of 
PM2.5 State Implementation Plans (SIP) for the South 
Coast and San Joaquin Valley Air Basins and Proposed SIP 
Revisions,'' dated March 29, 2011 and adopted April 28, 2011.
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    On November 9, 2011, EPA partially approved and partially 
disapproved the District's 2008 PM2.5 Plan and the revised 
2007 State Strategy (collectively the ``SJV PM2.5 SIP'') (76 
FR 69896). EPA's partial disapproval of the SJV PM2.5 SIP 
was based on our determination that its contingency measure provisions 
failed to meet the requirements of Clean Air Act (CAA) section 
172(c)(9) and 40 CFR 51.1012, which require that the SIP for each 
PM2.5 nonattainment area contain contingency measures to be 
implemented if the area fails to make reasonable further progress (RFP) 
or to attain the NAAQS by the applicable attainment date. See 76 FR 
41338, 41357 to 41359 (July 13, 2011) and 76 FR 69896, 69918 to 69919 
and 69924.
    As we explained in our proposed action on the SJV PM2.5 
SIP, contingency measures must be fully adopted rules or control 
measures that are ready to be implemented quickly without significant 
additional action by the state. See 76 FR 41338, 41357; see also 
``Final Technical Support Document and Responses to Comments, Final 
Rulemaking Action on the San Joaquin Valley PM2.5 State 
Implementation Plan,'' Air Division, U.S. EPA Region 9, September 30, 
2011 (``Final TSD for SJV PM2.5 SIP'') at pp. 126 to 134. We 
further explained that these measures must not be relied on in the plan 
to demonstrate RFP or attainment and should provide SIP-creditable 
emission reductions equivalent to approximately one year of RFP. Id. 
Finally, we stated that the SIP should contain trigger mechanisms for 
the contingency measures and specify a schedule for their 
implementation. Id.
    The contingency measure provisions in the SJV PM2.5 SIP 
consisted of several different types of measures, including surplus 
emission reductions in the RFP demonstration; commitments by the 
District to take specific actions; a contingency provision in the 
District's Rule 4901, ``Wood Burning Fireplaces and Wood Burning 
Heaters Residential Woodburning;'' post-attainment year (2015) 
reductions from CARB mobile source measures; reductions resulting from 
the District's expenditure of incentive program funds; and other 
reductions from implemented District rules that were not otherwise 
relied on in the attainment and RFP demonstrations. See 76 FR 41338, 
41357 to 41359; see also Final TSD for SJV PM2.5 SIP at pp. 
126 to 136. EPA found that, although several of these measures 
individually qualified for approval as contingency measures, 
collectively the measures identified in the SJV PM2.5 SIP 
did not provide sufficient SIP-creditable emission reductions for 
contingency measure purposes . See id. and 76 FR 69896, 69918 to 69919.
    Specifically, for RFP contingency measures for the 2012 milestone 
year, the SJV PM2.5 SIP relied on surplus reductions of 
direct PM2.5 and the two regulated precursors \4\ in the RFP 
demonstration, which provided some of the needed emission reductions 
but did not provide enough to achieve roughly one-year's worth of RFP 
(76 FR 41338, 41359 (Table 10)).\5\ For attainment contingency measures 
in 2015, the SJV PM2.5 SIP relied on the State's continued 
implementation of mobile source measures, a contingency provision in 
the District's Rule 4901, and surplus reductions from other District 
rules that would reduce emissions substantially in 2015. Overall, the 
attainment contingency measures in the SJV PM2.5 SIP 
provided all of the needed SOx reductions but only about 
two-thirds of the needed NOX and direct PM2.5 
reductions for 2015. Accordingly, we disapproved the contingency 
measure provisions in the SJV PM2.5 SIP for

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failure to satisfy the CAA's contingency measure requirements for the 
2012 RFP milestone year and for the 2015 attainment date.\6\ See 76 FR 
41338, 41359 and 76 FR 69896, 69924.
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    \4\ To demonstrate attainment of the 1997 PM2.5 
NAAQS, the SJV PM2.5 SIP relied on reductions of direct 
PM2.5 and two PM2.5 precursor pollutants: 
nitrogen oxides (NOX) and sulfur oxides (SOx). 
It did not rely on reductions of the two other chemical precursors 
to PM2.5: volatile organic compounds (VOC) and ammonia. 
See 76 FR 41338, 41353 and 76 FR 69896, 69924.
    \5\ The SJV PM2.5 SIP also contained provisions 
addressing RFP contingency measures for the 2009 milestone year, but 
EPA concluded it was not necessary to evaluate these provisions 
given the District had demonstrated that the area met the applicable 
2009 RFP milestone year targets for direct PM2.5, 
NOX, and SOx (76 FR 41338, 41358 to 41359).
    \6\ EPA's partial disapproval of the SJV PM2.5 SIP 
based on these deficiencies triggered mandatory sanctions clocks 
under CAA section 179(b) and an obligation on EPA to promulgate a 
Federal Implementation Plan (FIP) within two years (76 FR 69896, 
69924). The first sanctions, the offset sanction under CAA section 
179(b)(2), became effective in the SJV area 18 months after the 
effective date of EPA's final disapproval, i.e., on July 9, 2013 (40 
CFR 52.31(d)). In a separate action published in today's Federal 
Register, EPA is staying the offset sanction and deferring the 
application of highway funding sanctions, based on today's proposed 
rule to fully approve the Contingency Measure SIP. See ``Interim 
Final Determination to Stay and Defer Sanctions; San Joaquin 
Valley'' in the Rules section of today's Federal Register.
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II. Clean Air Act Requirements for Contingency Measures

    CAA section 172(c)(9) requires that the SIP for each nonattainment 
area ``provide for the implementation of specific measures to be 
undertaken if the area fails to make reasonable further progress, or to 
attain the [NAAQS] by the attainment date applicable under [part D of 
title I]'' and requires that these measures ``take effect without 
further action by the State or EPA.'' The CAA does not specify how many 
contingency measures are required or the magnitude of emission 
reductions that must be provided by these measures. Consistent with the 
text of section 172(c)(9), however, these measures must be specific, 
adopted measures that are ready to be implemented quickly upon failure 
to meet RFP or failure of the area to meet the standard by its 
attainment date.\7\
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    \7\ We refer to those measures addressing failure to make RFP as 
``RFP contingency measures'' and those measures addressing failure 
to attain as ``attainment contingency measures.''
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    EPA provided guidance on the section 172(c)(9) contingency measure 
requirement in an interpretative document entitled ``State 
Implementation Plans; General Preamble for the Implementation of Title 
I of the Clean Air Act Amendments of 1990,'' 57 FR 13498 (April 16, 
1992) (``General Preamble''). As EPA explained in the General Preamble, 
``contingency measures should, at a minimum, ensure that an appropriate 
level of emission reduction progress continues to be made if attainment 
[or] RFP is not achieved and additional planning by the State is 
needed'' (57 FR 13498, 13511). These emission reductions would be in 
addition to those that were already scheduled to occur in accordance 
with the plan for the area. See Id. at n. 2 and 57 FR 13498, 13543 to 
13544. Additionally, States must show that their contingency measures 
can be implemented with minimal further action on their part and 
without additional rulemaking actions such as public hearings or 
legislative review. In general, EPA expects actions needed to effect 
full implementation of the measures to occur within 60 days after EPA 
notifies the State of an area's failure to meet RFP or attain. See 57 
FR 13498, 13512 and 13543 to 13544; see also 59 FR 41998, 42014 to 
42015 (August 16, 1994) (``PM-10 Addendum'').
    Consistent with these interpretations of the Clean Air Act, EPA 
explained in the preamble to its 2007 implementation rule for the 1997 
PM2.5 NAAQS that the SIP should contain trigger mechanisms 
for the contingency measures, specify a schedule for implementation, 
and indicate that the measures will be implemented without significant 
further action by the State or EPA. See 72 FR 20586, 20642 to 20645 
(April 25, 2007) and 40 CFR 51.1012.\8\
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    \8\ Although the U.S. Court of Appeals for the District of 
Columbia (DC Circuit) recently remanded this rule and directed EPA 
to re-promulgate it pursuant to subpart 4 of part D, title I of the 
CAA (see Natural Resources Defense Council v. EPA, 706 F.3d 428 (DC 
Cir., Jan. 4, 2013)), the court's ruling in this case does not 
affect EPA's action on the Contingency Measure SIP. Subpart 4 of 
part D, title I of the Act contains no specific provision governing 
contingency measures for PM10 or PM2.5 
nonattainment areas that supersedes the general contingency measure 
requirement for all nonattainment areas in CAA section 172(c)(9). 
Thus, even if EPA applies the subpart 4 requirements to our 
evaluation of the Contingency Measure SIP and disregards the 
provisions of the 2007 PM2.5 implementation rule recently 
remanded by the court, the general requirement for contingency 
measures in CAA section 172(c)(9) continues to apply.
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    Contingency measures can include Federal, state, and local measures 
already scheduled for implementation that provide emission reductions 
in excess of those needed to provide for RFP or expeditious attainment. 
The key is that the contingency measures provide for additional 
emission reductions that are not relied on for RFP or attainment and 
that are not included in the attainment demonstration. The purpose is 
``to provide a cushion while the plan is being revised to meet the 
missed milestone'' (72 FR 20586, 20642 to 20643). Nothing in the 
statute precludes a state from implementing such measures before they 
are triggered. See, e.g., LEAN v. EPA, 382 F.3d 575 (5th Cir. 2004) 
(upholding contingency measures that were previously required and 
implemented where they were in excess of the attainment demonstration 
and RFP SIP).
    EPA has approved numerous SIPs under this interpretation--i.e., 
SIPs that use as contingency measures one or more Federal or local 
measures that are in place and provide reductions that are in excess of 
the reductions required by the attainment demonstration or RFP plan. 
See, e.g., 62 FR 15844 (April 3, 1997) (direct final rule approving an 
Indiana ozone SIP revision); 62 FR 66279 (December 18, 1997) (final 
rule approving an Illinois ozone SIP revision); 66 FR 30811 (June 8, 
2001) (direct final rule approving a Rhode Island ozone SIP revision); 
66 FR 586 (January 3, 2001) (final rule approving District of Columbia, 
Maryland, and Virginia ozone SIP revisions); and 66 FR 634 (January 3, 
2001) (final rule approving a Connecticut ozone SIP revision). A state 
may use the same measures for both RFP and attainment contingency if 
the measures will provide reductions in the relevant years. If these 
measures are first triggered for failure to make RFP, however, the 
state would need to submit replacement contingency measures for 
attainment purposes (57 FR 13498, 13511).
    With respect to the level of emission reductions associated with 
contingency measures, EPA has recommended that states consider ``the 
potential nature and extent of any attainment shortfall for the area'' 
and the amount of actual emission reductions required by the SIP 
control strategy to attain the standards. See PM-10 Addendum at 42015; 
see also 72 FR 20586, 20643. The contingency measures are to be 
implemented in the event that the area does not meet RFP or attain the 
standards by the attainment date, and ``should represent a portion of 
the actual emission reductions necessary to bring about attainment in 
area'' (72 FR 20586, 20643). Accordingly, EPA has recommended that the 
emission reductions anticipated by the contingency measures should be 
equal to approximately one-year's worth of emission reductions needed 
to achieve RFP for the area. See id. and PM-10 Addendum at 42015.

III. Review of the Submitted San Joaquin Valley PM2.5 Contingency 
Measure SIP

A. The Submitted San Joaquin Valley PM2.5 Contingency Measure SIP

    On July 3, 2013, CARB submitted the ``Quantifying Contingencies for 
the 2008 PM2.5 Plan'' (dated June 20, 2013) (``Contingency Measure 
SIP'') as a revision to the California State Implementation Plan. The 
State and District adopted the Contingency Measure SIP to correct the 
SIP deficiencies identified in EPA's November 9, 2011 partial 
disapproval of the SJV PM2.5 SIP by (1) confirming that

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the SJV area had met its 2012 RFP milestones and (2) expanding upon the 
attainment contingency measures in the SJV PM2.5 SIP to 
establish a contingency plan that achieves SIP-creditable emission 
reductions equivalent to approximately one year's worth of RFP in 2015. 
See generally Contingency Measure SIP. The July 3, 2013 submission 
includes a copy of the Contingency Measure SIP revision itself; a 
letter dated July 3, 2013 from Richard Corey, Executive Officer, CARB, 
to Jared Blumenfeld, Regional Administrator, EPA Region 9, submitting 
the adopted Contingency Measure SIP for EPA review; CARB Resolution 13-
30 (June 27, 2013) adopting the Contingency Measure SIP; a letter dated 
June 21, 2013 from Samir Sheikh, Director of Strategies and Incentives, 
SJVUAPCD, to Richard Corey, Executive Officer, CARB, submitting the 
adopted Contingency Measure SIP for CARB review and approval; SJVUPACD 
Board Resolution No. 13-6-18 approving the Contingency Measure SIP; 
technical support documentation; and public process documentation.
    On July 24, 2013, the District clarified its intent that EPA 
review, as support documentation for the Contingency Measure SIP, 
additional materials related to incentive programs that the District 
had submitted to EPA under separate cover. See email dated July 24, 
2013, from Samir Sheikh, SJVUAPCD, to Kerry Drake, EPA Region 9, ``RE: 
Per our conversation earlier.'' These supplemental materials include: 
(1) SJVUAPCD Rule 9610, ``State Implementation Plan Credit for Emission 
Reductions Generated through Incentive Programs,'' adopted June 20, 
2013; (2) SJVUAPCD, Rule 9610 Final Staff Report (including 
appendices), dated June 20, 2013; (3) SJVUAPCD, ``2013 Annual 
Demonstration Report,'' dated June 2013 (including associated 
electronic ``Data Sheet''); (4) CARB, ``Carl Moyer Program: Guideline 
Criteria for On-Road and Off-Road Projects,'' dated July 2013; (5) 
CARB, ``San Joaquin Valley Air Pollution Control District Proposed Rule 
9610, Responses to U.S. EPA's Request to Address `Integrity Elements' 
in the Proposition 1B: Goods Movement Emission Reduction Program 
Guidelines,'' draft, revised June 6, 2013; (6) CARB, ``Proposition 1B: 
Goods Movement Emission Reduction Program, Final Guidelines for 
Implementation,'' adopted February 28, 2008 (selected excerpts); (7) 
CARB, ``Proposition 1B: Goods Movement Emission Reduction Program, 
Final 2010 Guidelines for Implementation,'' adopted March 25, 2010 
(selected excerpts); and (8) CARB, ``The Carl Moyer Program 
Guidelines,'' approved April 28, 2011 (selected excerpts). CARB 
submitted additional technical support for its PM2.5 to 
NOX conversion analysis on August 6, 2013. See Memorandum 
dated August 13, 2013 from Scott Bohning, EPA Region 9 to File for 
docket EPA-R09-OAR-2013-0534, San Joaquin Valley action; Subject: 
Contingency precursor effectiveness ratio using additional information.
    In sum, the Contingency Measure SIP contains (1) the District's 
demonstration that actual emission levels in the SJV in 2012 were below 
the milestone year targets identified in the SJV PM2.5 SIP 
and approved by EPA for the 2012 RFP year; and (2) identification of 
contingency measures that provide 2015 emission reductions not relied 
on for RFP or attainment that are approximately equivalent to one-
year's worth of RFP. The District's calculation of 2015 emission 
reductions in the Contingency Measure SIP includes: reductions from 
contingency measures that we previously identified as SIP-creditable 
measures as part of our 2011 action on the SJV PM2.5 SIP, a 
revised calculation of emission reductions from the District's 
woodburning control measure (Rule 4901) based on updated air quality 
and emissions data, emission reductions resulting from the District's 
implementation of incentive programs, and substitution of surplus 
direct PM2.5 reductions for NOX reductions. For 
the SJV PM2.5 SIP, emission reductions equivalent to one 
year's worth of RFP are 2.5 tpd of direct PM2.5, 31.6 tpd of 
NOX and 0.2 tpd of SOx. See 76 FR 41338, 41359 
(Table 10) and Final TSD for SJV PM2.5 SIP, p. 131.
    We provide below a summary of our evaluation of the Contingency 
Measures SIP. For a more detailed discussion of EPA's analyses, see Air 
Division, EPA Region 9, ``Technical Support Document--Proposed Approval 
of Clean Air Act Section 172(c)(9) Contingency Measures--San Joaquin 
Valley State Implementation Plan for Attainment of the 1997 
PM2.5 Standards,'' August 15, 2013 (``Proposal TSD''), 
available in the docket for this proposed rule.

B. Clean Air Act Procedural Requirements for SIP Submissions

    CAA sections 110(a) and 110(l) require that revisions to a SIP be 
adopted by the State after reasonable notice and public hearing. EPA 
has promulgated specific procedural requirements for SIP revisions in 
40 CFR part 51, subpart F. These requirements include publication of 
notices, by prominent advertisement in the relevant geographic area, of 
a public hearing on the proposed revisions, a public comment period of 
at least 30 days, and an opportunity for a public hearing.
    CARB's SIP submission includes public process documentation for the 
Contingency Measure SIP, including documentation of duly-noticed public 
hearings held by the District on June 20, 2013 and by CARB on June 27, 
2013. See SJVUAPCD Board Resolution No. 13-6-18, pp. 2 and 3 and CARB 
Resolution 13-30, p. 3. We find that the process followed by the 
District and CARB in adopting the Contingency Measure SIP complies with 
the procedural requirements for SIP revisions under CAA section 110 and 
EPA's implementing regulations.\9\
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    \9\ The State also provided public notice and a hearing on Rule 
9610 before submitting the rule and associated support documents to 
EPA as a SIP revision. See letter dated June 26, 2013 from Richard 
Corey, Executive Officer, CARB to Jared Blumenfeld, Regional 
Administrator, EPA Region 9 (submitting Rule 9610) and CARB 
Executive Order S-13-006, dated June 26, 2013. EPA is not acting on 
Rule 9610 at this time but is reviewing it as support material for 
the Contingency Measure SIP. Other supplemental materials related to 
incentive programs that the State submitted to EPA under separate 
cover are not subject to additional State procedures under the Act 
as they provide only technical support and do not alter the 
substance of the Contingency Measure SIP. All of these supplemental 
materials are available in EPA's docket for this rulemaking.
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    CAA section 110(k)(1)(B) requires EPA to determine whether a SIP 
submission is complete within 60 days of receipt. Our SIP completeness 
criteria are found in 40 CFR part 51, Appendix V. We determined that 
the Contingency Measure SIP is complete on August 12, 2013. See letter 
from dated August 12, 2013 Deborah Jordan, Air Division Director EPA 
Region 9 to Richard Corey, Executive Officer, Air Resources Board.

C. Evaluation of the Contingency Measure SIP

1. Contingency Measures for Failure To Meet the 2012 Reasonable Further 
Progress Milestone
    The Contingency Measure SIP includes a demonstration that emissions 
of direct PM2.5, NOX, and SOx in 2012 
were all below the corresponding 2012 RFP milestone year emissions 
targets that EPA approved as part of the SJV PM2.5 SIP. See 
Contingency Measure SIP, p. 2. To make this demonstration, the District 
used the emission inventory from the 2011 Progress Report, adjusted to 
remove uncreditable reductions,\10\ and compared it to the SIP-approved 
2012 RFP milestone year targets. Based on this comparison, the District

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concluded that it met its approved 2012 RFP milestone year targets and, 
accordingly, that RFP contingency measures for this milestone year are 
no longer needed. Id.
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    \10\ For a description of these uncreditable reductions, see 
Proposal TSD, Table E-4, p. 15.
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    We agree with the District's conclusion that the SJV area has now 
met its approved 2012 RFP milestone year targets \11\ and that RFP 
contingency measures for 2012 are, therefore, no longer needed. The 
emission inventory used in the RFP demonstration in the SJV 
PM2.5 SIP is expressed in tons per average annual day, an 
appropriate metric for measuring progress for the annual 
PM2.5 standard. The inventory in the 2011 Progress Report, 
used in the Contingency Measure SIP to demonstrate that the 2012 RFP 
targets have been met, is the most recent average annual day inventory 
currently available for the SJV. However, as an additional check, EPA 
also reviewed the average winter day inventory recently submitted as 
part of the District's 2012 PM2.5 Plan for attaining of the 
2006 24-hour PM2.5 NAAQS and determined that the conclusion 
that the area has met its approved 2012 milestone year targets is also 
supported by this inventory. See Proposal TSD, pp. 16 to 17.
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    \11\ The 2012 RFP milestone year targets that EPA approved as 
part of the RFP demonstration in the SJV PM2.5 SIP are 
identified as ``revised projected controlled emissions levels'' for 
2012 in EPA's proposed action on the SJV PM2.5 SIP (76 FR 
41338, 41357 (Table 9)).
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    Based on our evaluation, EPA proposes to find that the RFP 
contingency measure requirement for the 2012 RFP milestone year is now 
moot as applied to the SJV. The sole purpose of RFP contingency 
measures is to provide continued progress if an area fails to meet its 
RFP goal. Failure to meet the 2012 milestone year target would have 
required California to implement RFP contingency measures and to revise 
the SJV PM2.5 SIP to assure that the plan still provided for 
attainment by the applicable attainment date of April 5, 2015. In this 
case, however, the Contingency Measure SIP demonstrates that actual 
emission levels in 2012 met the approved 2012 RFP milestone year 
targets for all three pollutants (PM2.5, NOX, and 
SOX) regulated in the SJV PM2.5 SIP. Accordingly, 
RFP contingency measures for 2012 no longer have meaning or purpose, 
and therefore EPA proposes to find that the requirement for them is now 
moot.
2. Contingency Measures for Failure To Attain
    The Contingency Measure SIP identifies projected emission 
reductions for 2015 on which the District is relying to meet the CAA's 
attainment contingency measure requirement for the 1997 
PM2.5 NAAQS. These projected emission reductions are 
categorized as follows: (1) Surplus emission reductions from adopted 
and implemented State and District regulatory measures, i.e., emission 
reductions not relied on for RFP or attainment; (2) emission reductions 
from a contingency provision in the District woodburning rule; (3) 
emission reductions resulting from the District's implementation of 
incentive programs, and (4) substitution of surplus direct 
PM2.5 contingency reductions for NOX contingency 
reductions. We address each of these categories of emission reductions 
below.
a. Regulatory Measures and Programs
    The SJV PM2.5 SIP, which EPA partially approved and 
partially disapproved in November 2011 (76 FR 69896), provided for the 
continuing implementation of existing CARB mobile source measures that 
will achieve 21 tpd of NOX reductions in 2015. See 76 FR 
41338, 41359 (Table 9) and Final TSD for SJV PM2.5 SIP, p. 
135. These mobile source emission reductions are surplus to the 
reductions relied upon to demonstrate attainment because they occur in 
2015 (after implementation of all control measures necessary for 
expeditious attainment) \12\ and will achieve approximately two-thirds 
of the NOX emission reductions needed to achieve one-year's 
worth of RFP. The Contingency Measure SIP also identifies these same 
mobile source emissions reductions as attainment contingency measures, 
and EPA agrees that these emission reductions qualify for approval as 
attainment contingency measures.
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    \12\ Consistent with CAA section 172(c)(1) and 40 CFR 
51.1007(b), the SJV PM2.5 SIP provides for the 
implementation of all control measures needed for attainment as 
expeditiously as practicable and no later than the beginning of the 
year prior to the attainment date (i.e., by January 2014) (76 FR 
69896, 69916 to 69917).
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    Additionally, the SJV PM2.5 SIP showed that continuing 
implementation of CARB's mobile source control program and District 
rules would provide 3 tpd of SOX reductions beyond the 
levels needed for expeditious attainment in 2015. See 76 FR 41338, 
41359 (Table 10) and Final TSD for SJV PM2.5 SIP, p. 135. 
These surplus reductions are primarily due to the low-sulfur content 
requirements in CARB diesel fuel regulations for on- and off-road 
equipment\13\ and SOX limits in District Rule 4320 (Advanced 
Emission Reduction Option for Boilers) and Rule 4354 (Glass Melting 
Furnaces).\14\ The Contingency Measure SIP also identifies these 
SOX reductions from State and District control measures as 
attainment contingency measures, and EPA agrees that these measures 
provide 3 tpd of SOX reductions that are not relied on for 
RFP or attainment and, therefore, qualify for approval as attainment 
contingency measures.
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    \13\ See 13 CCR section 2281 (``Sulfur Content of Diesel 
Fuel'').
    \14\ EPA approved CARB's diesel fuel regulations on May 12, 2010 
(75 FR 26653), Rule 4320 on March 25, 2011 (76 FR 16696), and Rule 
4354 on August 29, 2011 (76 FR 53640).
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    Finally, the SJV PM2.5 SIP included a contingency 
provision in section 5.6.5 of District Rule 4901 (Wood Burning 
Fireplaces and Wood Burning Heaters). This provision requires that 60 
days after EPA finds the SJV has failed to attain the 1997 
PM2.5 NAAQS, the District will lower the level at which 
mandatory curtailment of residential wood burning is required from a 
predicted level of 30 [micro]g/m\3\ to 20 [micro]g/m\3\. EPA approved 
this rule, including the contingency provision, on November 10, 2009 
(74 FR 57907).
    As part of the SJV PM2.5 SIP, the District had 
preliminarily estimated the emissions reduction from this contingency 
provision at 1.6 tons of direct PM2.5 per average annual 
day. This estimate was derived by reviewing 2006 air quality data to 
determine how many additional curtailment days would be required at the 
lower (20 [micro]g/m\3\) threshold. As part of the revised analysis 
contained in the Contingency Measure SIP, the District reviewed ambient 
air quality data for the 2009-2013 period to determine the numbers of 
``No Burn'' days that it would have required had the lower mandatory 
curtailment level (20 [micro]g/m\3\) been effective during these years. 
Based on these updated data, the District revised the estimated 
additional emission reductions expected from the Rule 4901 contingency 
provision to 3.12 tpd of direct PM2.5 and 0.32 tpd of 
NOX. See Contingency Measure SIP, pp. 4 to 6. EPA now finds 
that these updated calculations of the projected emission reductions 
from Rule 4901 are reasonable and, therefore, agrees with the District 
that Rule 4901 provides 3.1 tpd of direct PM2.5 reductions 
and 0.3 tpd of NOX reductions that qualify for approval as 
attainment contingency measures.
    In sum, taking into account surplus emission reductions in the SJV 
PM2.5 SIP that EPA previously identified as available for 
contingency measure purposes and the District's revised estimate of 
emissions reduction from the contingency provision in the SIP-

[[Page 53118]]

approved Rule 4901, the total amount of emission reductions from 
regulatory control measures that we are proposing to approve as part of 
the Contingency Measure SIP are as follows: 21.3 tpd of NOX 
reductions from the continuing implementation of CARB's mobile source 
control program and District Rule 4901; 3.1 tpd of direct 
PM2.5 reductions from the contingency provision in District 
Rule 4901; and 3 tpd of surplus SOX reductions from District 
rules limiting SOX emissions and CARB's mobile source 
control program, including its low-sulfur diesel fuel regulation.
b. Discretionary Economic Incentive Programs
    The Contingency Measure SIP states that NOX and 
PM2.5 emission reductions to be achieved through the 
implementation of specific incentive programs in the San Joaquin Valley 
are available for contingency measure purposes in 2015. See Contingency 
Measure SIP, pp. 7 to 9. The incentive programs identified in the 
Contingency Measure SIP for this purpose are as follows: the Carl Moyer 
Memorial Air Quality Standards Attainment Program (Carl Moyer Program), 
implemented through a partnership between CARB and local air districts; 
the Proposition 1B: Goods Movement Emission Reduction Program (Prop 
1B), also implemented through a partnership between CARB and local air 
districts; and the U.S. Department of Agriculture, Natural Resources 
Conservation Service's (NRCS) Environmental Quality Incentives Program 
(EQIP), implemented by NRCS. See id. We are proposing to approve 4.15 
tpd of NOX reductions and 0.10 tpd of direct 
PM2.5 reductions from specific Carl Moyer Program and Prop 
1B projects, as identified in the Contingency Measure SIP and in this 
proposed rule, for purposes of satisfying the contingency measure 
requirement for the 1997 PM2.5 NAAQS.
    The CAA explicitly provides for the use of economic incentives as 
one tool for states to use to achieve attainment of the NAAQS. See, 
e.g., CAA section 110(a)(2)(A) (requiring that each SIP ``include 
enforceable emission limitations and other control measures, means, or 
techniques (including economic incentives such as fees, marketable 
permits, and auctions of emissions rights), as well as schedules and 
timetables for compliance, as may be necessary or appropriate to meet 
the applicable requirements of [the Act]''); see also sections 
172(c)(6), 183(e)(4). Economic incentive programs (EIPs) use market-
based strategies to encourage the reduction of emissions from 
stationary, area, and/or mobile sources in an efficient manner. EPA has 
promulgated regulations for statutory EIPs required under section 
182(g) of the Act and has issued guidance for discretionary EIPs.\15\ 
See 59 FR 16690 (April 7, 1994) (codified at 40 CFR part 51, subpart U) 
and ``Improving Air Quality with Economic Incentive Programs,'' U.S. 
EPA, Office of Air and Radiation, January 2001 (EPA-452/R-01-001) 
(``2001 EIP''). Where a State relies upon a discretionary EIP in a SIP 
submission, EPA evaluates the programmatic elements of the EIP to 
determine whether the resulting emission reductions are quantifiable, 
surplus, enforceable and permanent. See 2001 EIP at Section 4.1. These 
four fundamental ``integrity elements,'' which apply to all EIPs and 
other incentive/voluntary measures relied on for SIP purposes, are 
designed to ensure that such programs and measures satisfy the 
applicable requirements of the Act. See id.; see also ``Guidance on 
Incorporating Voluntary Mobile Source Emission Reduction Programs in 
State Implementation Plans (SIPs),'' October 24, 1997 (``1997 VMEP''); 
``Incorporating Voluntary Stationary Source Emission Reduction Programs 
Into State Implementation Plans--Final Policy,'' January 19, 2001; 
``Incorporating Emerging and Voluntary Measures in a State 
Implementation Plan (SIP),'' September 2004; ``Guidance on 
Incorporating Bundled Measures in a State Implementation Plan,'' August 
16, 2005; and ``Roadmap for Incorporating Energy Efficiency/Renewable 
Energy Policies and Programs into State and Tribal Implementation 
Plans,'' July 2012.
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    \15\ A ``discretionary economic incentive program'' is ``any EIP 
submitted to the EPA as an implementation plan revision for purposes 
other than to comply with the statutory requirements of sections 
182(g)(3), 182(g)(5), 187(d)(3), or 187(g) of the Act'' (40 CFR 
51.491).
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    We are evaluating the incentive-based emission reductions in the 
Contingency Measure SIP in accordance with these fundamental integrity 
elements as applied, in particular, to discretionary ``financial 
mechanism EIPs'' and ``voluntary mobile source emission reduction 
programs'' (VMEPs). See 2001 EIP at Section 8.0 (describing ``financial 
mechanism EIP'' as a mechanism that indirectly reduces emissions by 
increasing costs for high emitting activities--e.g., through fees/taxes 
on emissions and subsidies targeted at promoting pollution-reducing 
activities or products) and 1997 VMEP at p. 3 (describing ``VMEP'' as a 
mobile source strategy that complements existing regulatory programs 
through voluntary, nonregulatory changes in local transportation sector 
activity levels or changes in in-use vehicle and engine fleet 
composition). A discretionary EIP or VMEP submission must be 
accompanied by sufficient technical support for EPA to determine that 
the statutory criteria for approval are met--e.g., procedures designed 
to compare projected emission reductions with actual emission 
reductions achieved; State commitments to monitor, assess, and report 
on program implementation and actual emission reductions achieved; and 
procedures for the State to remedy emission reduction shortfalls in a 
timely manner. See 2001 EIP at Section 5.0 and 1997 VMEP at pp. 6, 7. 
The State must also demonstrate that it has adequate personnel and 
program resources to implement the program and that the EIP or VMEP 
does not interfere with other requirements of the Act. See id. and 2001 
EIP at Section 11.0. With respect to VMEPs, EPA has in the past 
generally limited the amount of emission reductions allowed in a SIP to 
three percent (3 percent) of the total projected future year emission 
reductions required to attain the relevant NAAQS, and for any 
particular SIP submittal to demonstrate attainment or maintenance of 
the NAAQS or progress toward attainment (RFP), 3 percent of the 
specific statutory requirement. See 1997 VMEP at 5.
i. Overview of SJVUAPCD's Incentive-Based Emission Reductions
    The Carl Moyer Program is a California grant program established in 
1998 that provides funding to encourage the voluntary purchase of 
cleaner-than-required engines, equipment, and other emission reduction 
technologies. See generally CARB, ``The Carl Moyer Program Guidelines, 
Approved Revisions 2011,'' Release Date: February 8, 2013, at Chapter 1 
(available electronically at http://www.arb.ca.gov/msprog/moyer/moyer.htm). In its first 12 years, the Carl Moyer Program provided over 
$680 million in state and local funds to reduce air pollution from 
equipment statewide, e.g., by replacing older trucks with newer, 
cleaner trucks, retrofitting controls on existing engines, and 
encouraging the early retirement of older, more polluting vehicles. Id.
    The Prop 1B program is a California grant program established in 
2007, as a result of State bond funding approved by voters, which 
provides $1 billion in funding to CARB to reduce air pollution 
emissions and health risks from freight movement along California's 
priority trade corridors. Under the enabling legislation (California 
Senate Bill 88 and

[[Page 53119]]

Assembly Bill 201 (2007)), CARB awards grants to fund projects proposed 
by local agencies that are involved in freight movement or air quality 
improvements associated with goods movement activities. Upon receipt of 
such grants, the local agencies are then responsible for providing 
financial incentives to owners of equipment used in freight movement to 
upgrade to cleaner technologies, consistent with program guidelines 
adopted by CARB. See generally ``Strategic Growth Plan Bond 
Accountability, Goods Movement Emission Reduction Program,'' Approved 
February 27, 2008 (available electronically at http://www.arb.ca.gov/bonds/gmbond/docs/gm_accountability_with_links_2-27-08.pdf).
    The Contingency Measure SIP states that a total of 10.9 tpd of 
NOX reductions and 0.44 tpd of direct PM2.5 
reductions, to be achieved in 2015 through implementation of the Carl 
Moyer Program, Prop 1B, and EQIP, are available for contingency measure 
purposes and that these emission reductions exceed the 4.15 tpd of 
NOX reductions and 0.10 tpd of direct PM2.5 
reductions needed to satisfy the contingency measure requirement for 
2015. See Contingency Measure SIP, p. 7. To support the District's 
conclusion that these NOX and direct PM2.5 
reductions from incentive programs are quantifiable, surplus, 
enforceable and permanent, the Contingency Measure SIP cites specified 
requirements in SJVUAPCD Rule 9610, a regulation adopted by the 
District on June 20, 2013 to establish administrative processes and 
criteria for documenting emission reductions achieved through incentive 
programs for CAA SIP purposes. See id. at 7, 8 (citing Proposed 
SJVUAPCD Rule 9610, section 7.0). According to the District, the 4.15 
tpd of NOX reductions and 0.10 tpd of direct 
PM2.5 reductions from incentive programs that it is relying 
upon to satisfy the attainment contingency measure requirement (for 
2015) satisfy the requirements of section 7.0 of proposed Rule 9610\16\ 
and, therefore, qualify for SIP credit under the CAA.
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    \16\ The Contingency Measure SIP references ``proposed'' Rule 
9610 because the rule was not yet adopted at the time the District 
was developing the Contingency Measure SIP. Rule 9610, as adopted by 
the SJVUAPCD Governing Board on June 20, 2013, is substantively 
unchanged from the proposed rule that the District made available 
for public comment on May 21, 2013, and section 7.0 of the adopted 
rule is identical to the text in the proposed rule. Unless otherwise 
noted, all references to Rule 9610 herein are to the rule as adopted 
June 20, 2013.
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    Under section 7.0 of Rule 9610,\17\ each SIP submission as to which 
the District relies on projections of emission reductions from 
incentive programs to satisfy a CAA SIP requirement must include a 
demonstration that each applicable incentive program guideline 
continues to provide for ``SIP-creditable emission reductions''--i.e., 
emission reductions that are quantifiable, surplus, enforceable, and 
permanent, as those terms are defined in Rule 9610. See Rule 9610, 
section 7.0 and section 2.25 (definition of ``SIP-Creditable Emission 
Reduction''). In addition, each such SIP submission must include an 
enforceable commitment that: (1) Identifies incentive program 
guidelines used to generate projected SIP-creditable emission 
reductions; (2) identifies emission reductions ``projected to be 
achieved through the use of secured or reasonably anticipated incentive 
program funding'' and estimated numbers of projects and willing 
participants; (3) is specifically adopted by the District as part of 
the SIP and accounted for in subsequent annual demonstration reports; 
and (4) states that ``if either the District or EPA finds that there is 
a SIP shortfall for a particular year, the District will adopt and 
submit to EPA, by specified dates, substitute rules and measures that 
will achieve equivalent emission reductions as expeditiously as 
practicable and no later than any applicable implementation deadline in 
the Clean Air Act or EPA's implementing regulations.'' See Rule 9610, 
sections 7.1 through 7.4.
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    \17\ EPA is not proposing at this time to act on Rule 9610 
itself. To the extent the Contingency Measure SIP relies upon 
emission reductions that are quantified and tracked pursuant to the 
requirements of Rule 9610, however, EPA has reviewed relevant 
provisions of Rule 9610 and related support documents, consistent 
with the District's intent. See email dated July 24, 2013 from Samir 
Sheikh, SJVUAPCD, to Kerry Drake, EPA Region 9, ``RE: Per our 
conversation earlier.''
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    Consistent with these criteria, the Contingency Measure SIP 
contains the State's and District's demonstrations that specified 
portions of the following Prop 1B and Carl Moyer Program guidelines 
\18\ provide for emission reductions that are quantifiable, surplus, 
enforceable, and permanent: (1) ``Proposition 1B: Goods Movement 
Emission Reduction Program, Final 2010 Guidelines for Implementation,'' 
adopted March 25, 2010; (2) ``Proposition 1B: Goods Movement Emission 
Reduction Program, Final Guidelines for Implementation,'' adopted 
February 28, 2008; and (3) ``The Carl Moyer Program Guidelines,'' 
approved April 28, 2011. See email dated July 24, 2013 from Samir 
Sheikh, SJVUAPCD, to Kerry Drake, EPA Region 9, ``RE: Per our 
conversation earlier.'' In addition, the Contingency Measure SIP 
contains an enforceable commitment by the District: (1) to ``account 
for'' the District's claimed 4.15 tpd of NOX reductions and 
0.10 tpd of direct PM2.5 reductions ``in annual 
demonstration reports pursuant to the requirements of Rule 9610''; and 
(2) if there is a shortfall in emission reductions from these incentive 
programs, to ``adopt and submit to EPA substitute rules and measures 
that will achieve equivalent emission reductions as expeditiously as 
practicable and no later than any applicable implementation deadline in 
the CAA or EPA's implementing regulations, by no later than December 
31, 2016.'' See SJVUAPCD Board Resolution No. 13-6-18 at p. 3.
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    \18\ The District's Board Resolution adopting the Contingency 
Measure SIP broadly identifies ``the incentive program guidelines 
identified in Section 3.1 of Rule 9610, the 2013 Draft Annual 
Demonstration Report, and the Manual of Procedures to quantify SIP-
creditable emission reductions relied upon to satisfy the 
PM2.5 contingency measure requirement for 2015 in the 
amount of 4.15 tons per day (tpd) of NOX reductions and 
0.10 tpd of direct PM2.5 reductions. . . .'' and the 
Contingency Measure SIP similarly identifies the Carl Moyer Program, 
Prop 1B, and EQIP (NRCS) in their entirety as the basis for the 
District's claimed NOX and direct PM2.5 
emission reductions. See SJVUAPCD Board Resolution No. 13-6-18, p. 3 
and Contingency Measure SIP, p. 7. In this proposed rule, however, 
EPA is evaluating only a subset of these guidelines (i.e., specified 
portions of those Carl Moyer Program and Prop 1B guidelines 
identified herein), as the Contingency Measure SIP does not contain 
adequate technical documentation for EPA to fully evaluate all of 
the incentive programs referenced in the SIP submission.
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    Finally, information provided to support the Contingency Measure 
SIP demonstrates that the District has adequate personnel and program 
resources to implement the Carl Moyer Program and Prop 1B programs. 
See, e.g., ``The Carl Moyer Program Guidelines'' (approved April 28), 
Chapter 3 (``Program Administration''); ``2011 Proposition 1B: Goods 
Movement Emission Reduction Program, Final 2010 Guidelines for 
Implementation'' (adopted March 25, 2010) at Chapter III (``Local 
Agency Project Proposal''); and letter dated January 2, 2013 from James 
Goldstene, Executive Officer, CARB, to Seyed Sadredin, Air Pollution 
Control Officer, SJVUAPCD, enclosing ``Incentive Program Review Report, 
San Joaquin Valley Air Pollution Control District Fiscal Years 2006-07 
through 2009-10.''
ii. Evaluation of Applicable Incentive Program Guidelines and Projects
    We have evaluated specific portions of the three incentive program 
guidelines identified above (the 2008 and 2010 Prop 1B guidelines and 
2011

[[Page 53120]]

Carl Moyer Program guideline) \19\ and believe, with one exception, 
that they provide for emission reductions that are quantifiable, 
surplus, enforceable, and permanent consistent with the requirements of 
the CAA. The one exception is the option for the State to grant a 
longer project life on a case-by-case basis ``if an applicant provides 
justifying documentation.'' See, e.g., ``The Carl Moyer Program 
Guidelines,'' approved April 28, 2011, Chapter 9 (Off-Road Equipment 
Replacement) at section C.1(C)(5) (``Project Life''). This option to 
grant a longer project life on a case-by-case basis provides the State 
with broad discretion to extend the duration of emission reductions 
claimed from an equipment replacement project without any EPA oversight 
or public process. Because these case-by-case determinations could 
undermine the integrity of the program (e.g., by undermining EPA's 
ability to limit SIP credit to the period during which the emission 
reductions are ``surplus'' to other requirements), EPA cannot grant SIP 
credit for emission reductions from projects subject to such a 
determination unless the District submits the individual determination 
for EPA review and approval through the SIP process.
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    \19\ Relevant excerpts of these three guidelines are available 
in EPA's docket for this rulemaking.
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    With the limited exception of these provisions regarding case-by-
case determinations, the portions of the identified program guidelines 
that we have reviewed establish clear criteria that enable the District 
to quantify the emission reductions attributed to specified projects 
with a reasonable level of accuracy; verify that those emission 
reductions are ``surplus'' as that term is defined in section 2.27 of 
Rule 9610 \20\; enforce the conditions of program grants to ensure that 
contracted emission reductions are achieved; and monitor the continuing 
implementation of program grants to ensure that emission reductions are 
``permanent'' throughout the life of each project. For a more detailed 
discussion of EPA's review of the relevant portions of these three 
program guidelines, see Proposal TSD, pp. 29 to 42.
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    \20\ Section 2.27 of Rule 9610 defines the term ``surplus'' as 
follows: ``for purposes of this rule, emission reductions are 
surplus when they are not otherwise required by any federal, state, 
or local regulation, or other legal mandate, and are in excess of 
the baseline emission inventories underlying a SIP attainment 
demonstration.''
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    Additionally, we have evaluated the District's documentation for 
specific projects \21\ funded through the Prop 1B program and Carl 
Moyer Program that provide an adequate basis for the District's claimed 
NOX and direct PM2.5 emission reductions for 
2015.\22\ The Contingency Measure SIP states that it relies on 
incentive-based emission reductions to be achieved from ``already-
executed, legally binding contracts'' rather than on projections of 
future funding and participation rates. See Contingency Measure SIP at 
7, 8. According to the 2013 Annual Demonstration Report and associated 
``Data Sheet,'' \23\ on-road vehicle replacement projects that have 
been funded through the Prop 1B program and off-road vehicle 
replacement projects that have been funded through the Carl Moyer 
Program are expected to achieve NOX and direct 
PM2.5 emission reductions in amounts adequate to cover the 
incentive-related emission reductions claimed by the District in the 
Contingency Measure SIP (i.e., the 4.15 tpd of NOX 
reductions and 0.10 tpd of direct PM2.5 reductions claimed 
for 2015). Each of these funded projects is subject to one of the three 
incentive program guidelines identified above (i.e., the 2008 Prop 1B 
guideline, 2010 Prop 1B guideline, or 2011 Carl Moyer Program 
guideline).
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    \21\ Section 2.19 of Rule 9610 defines the term ``project'' as 
follows: ``for purposes of this rule, actions taken to reduce 
emissions through incentive programs, as contracted between the 
Grantee and the District, NRCS, or CARB using incentive program 
guidelines at the time of contracting. Such actions include, but are 
not limited to, replacements, retrofits, new purchases, new 
practices, and repower.''
    \22\ EPA is not reviewing projects funded through the EQIP 
program at this time because the Contingency Measure SIP does not 
contain adequate documentation regarding this program. See n. 18, 
supra.
    \23\ Available at http://www.valleyair.org/MOP/docs/9610ProjectDataforPublicUNLOCKED8-7-13.xlsx.
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    Specifically, the Data Sheet identifies 1243 ``on-road vehicle 
replacement'' projects funded through the Prop 1B program that have a 
``project life'' ending on or after January 1, 2016 and therefore will 
continue to achieve emission reductions at least through the end of 
2015.\24\ Collectively, these 1243 funded projects are projected to 
achieve 3.78 tpd of NOX reductions and 0.15 tpd of PM 
reductions in 2015. See Memorandum from Idalia Perez to File dated July 
22, 2013. These totals are consistent with the emission reduction 
estimates for 2015 provided in Table 18 of the 2013 Annual 
Demonstration Report, which identifies the total reductions, in tons 
per day, of NOX, particulate matter (PM) and ``reactive 
organic gases'' (ROGs) \25\ that the District expects will be achieved 
by Prop 1B projects related to on-road trucks between 2009 and 2020. 
See 2013 Annual Demonstration Report at 40, Table 18 (``SIP-Creditable 
Incentive-Based Emission Reductions for On-Road Trucks''). 
Additionally, the Data Sheet indicates that 853 of these 1243 projects 
subject to Prop 1B funds have a project life ending after December 31, 
2016 and will, therefore, continue to generate emission reductions 
through at least the end of 2016. See Proposal TSD at Attachment A 
(``Prop 1B: On-Road Vehicle Replacement projects achieving emission 
reductions through 2015'') and Memorandum from Idalia Perez to File 
dated July 22, 2013. These funded projects are expected to achieve 2.35 
tpd of NOX reductions and 0.09 tpd of PM reductions in 2016. 
See id. and 2013 Annual Demonstration Report at 40, Table 18.
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    \24\ In the Data Sheet, these Prop 1B projects are listed under 
the following columns: (1) Component: ``On-Road Prop 1B''; (2) 
Component Option: ``Vehicle Replacement'' and ``Vehicle Replacement 
2 for 1''; and (3) Applicable Guideline: ``Prop 1B 2008'' and ``Prop 
1B 2010.'' EPA has compiled these Prop 1B projects into a separate 
document which identifies each project by its unique ``project 
identification'' code and information regarding the emission 
reductions it will achieve over its lifetime, in tons. See Proposal 
TSD at Attachment A (``Prop 1B: On-Road Vehicle Replacement projects 
achieving emission reductions through 2015'').
    \25\ California uses the term ``reactive organic gases'' (ROGs) 
to refer generally to volatile organic compounds (VOCs) as defined 
in 40 CFR 51.100(s).
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    Similarly, the Data Sheet identifies 675 ``off-road vehicle 
replacement'' projects funded through the Carl Moyer Program that have 
a ``project life'' ending on or after January 1, 2021 and therefore 
will continue to achieve emission reductions well past the end of 
2015.\26\ Collectively, these 675 funded projects are projected to 
achieve 1.23 tpd of NOX reductions and 0.06 tpd of PM 
reductions in 2015. See Memorandum from Idalia Perez to File dated July 
22, 2013. These totals are consistent with the emission reduction 
estimates for 2015 provided in Table 13 of the 2013 Annual 
Demonstration Report, which identifies the total reductions, in tons 
per day, of NOX, PM and ROGs that the District expects will 
be achieved by Carl Moyer Program projects related to off-road vehicle 
replacement between 2009 and 2020. See 2013 Annual Demonstration Report 
at 37, Table 13 (``SIP-Creditable Incentive-Based Emission Reductions 
for Off-Road Compression-Ignition

[[Page 53121]]

Equipment Replacement Claimed Pursuant to Section 3.1''). All of these 
funded projects are expected to continue achieving emission reductions 
through at least 2021. See Proposal TSD at Attachment B (``Carl Moyer 
Program: Off-Road Vehicle Replacement projects achieving emission 
reductions through 2015'') and Memorandum from Idalia Perez to File 
dated July 22, 2013. Although Chapter 9 of the 2011 Carl Moyer Program 
guideline contains several provisions allowing for case-by-case 
determinations,\27\ we understand that the District's 2015 emission 
reduction estimates for Carl Moyer projects in Table 13 of the 2013 
Annual Demonstration Report do not rely on any projects subject to 
case-by-case determinations, as such determinations are not eligible 
for SIP credit unless reviewed through a public process and submitted 
to EPA as part of a SIP submission meeting the requirements of Rule 
9610.\28\
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    \26\ In the Data Sheet, these Carl Moyer Program projects are 
listed under the following columns: (1) Component: ``Off-Road''; (2) 
Component Option: ``Vehicle Replacement''; and (3) Applicable 
Guideline: ``Carl Moyer 2011.'' EPA has compiled these Carl Moyer 
Program projects into a separate document which identifies each 
project by its unique ``project identification'' code and 
information regarding the emission reductions it will achieve over 
its lifetime, in tons. See Proposal TSD at Attachment B (``Carl 
Moyer Program: Off-Road Vehicle Replacement projects achieving 
emission reductions through 2015'').
    \27\ See, e.g., ``The Carl Moyer Program Guidelines,'' approved 
April 28, 2011, Chapter 9 (Off-Road Equipment Replacement) at 
section C.1(C)(5) (``Project Life'').
    \28\ Rule 9610 specifically prohibits the use of any case-by-
case determination to quantify emission reductions for SIP purposes 
``unless such determination is reviewed through a public process and 
submitted to EPA in accordance with Section 7.0 [of Rule 9610].'' 
See Rule 9610 at section 3.2.2; see also 2013 Annual Demonstration 
Report at 11. Neither the 2013 Annual Demonstration Report nor the 
Contingency Measure SIP specifically identifies any case-by-case 
determination for EPA review.
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    We conclude that the District's documentation regarding these Prop 
1B and Carl Moyer Program projects is adequate to ensure that the 
associated NOX and direct PM2.5 emission 
reductions can be monitored and verified. In any future SIP that relies 
on incentive-based emission reductions quantified pursuant to the 
requirements of Rule 9610, we expect the District will specifically 
identify the types of projects relied upon to generate the emission 
reductions and the specific incentive program guidelines that apply to 
those projects and we expect the subsequent annual demonstration 
reports will then list the individual projects relied upon to achieve 
those reductions, as provided in our Proposal TSD. We note that the 
4.15 tpd of NOX reductions and 0.10 tpd of direct 
PM2.5 reductions attributed to the Carl Moyer Program and 
Prop 1B in 2015 for contingency measure purposes each amount to less 
than 2 percent of the total projected emission reductions of each 
pollutant needed to attain the 1997 PM2.5 NAAQS in the 
SJV.\29\
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    \29\ The SJV PM2.5 SIP projects the total amounts of 
emission reductions needed to attain the PM2.5 NAAQS, 
from a 2005 base year to a 2014 attainment year, are as follows: 
284.2 tpd of NOX reductions; 22.7 tpd of direct 
PM2.5 reductions; and 1.8 tpd of SOX 
reductions. See 76 FR 69896, 69923 (Table 4, line A) and Final TSD 
for SJV PM2.5 SIP, p. 113 (Table G-2, line C). Thus, the 
incentive program reductions identified in the Contingency Measure 
SIP amount to approximately 1.5 percent of the NOX 
reductions and 0.4 percent of the direct PM2.5 reductions 
needed for timely attainment of the PM2.5 NAAQS in the 
SJV.
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iii. Evaluation of SJVUAPCD's Enforceable Commitments
    We have evaluated the Board commitments submitted as part of the 
Contingency Measure SIP and find that they establish clear obligations 
on the District's part to monitor, assess, and report on program 
implementation and actual emission reductions achieved and to remedy 
any emission reduction shortfalls in a timely manner, consistent with 
EPA policy. Specifically, SJVUAPCD Board Resolution No. 13-6-18 
contains two key components designed to ensure that the 4.15 tpd of 
NOX reductions and 0.10 tpd of direct PM2.5 
reductions claimed in the District's Contingency Measure SIP are 
enforceable under the CAA.
    The first key component is a commitment to ``account for'' these 
emission reductions ``in annual demonstration reports pursuant to the 
requirements of Rule 9610.'' SJVUAPCD Board Resolution No. 13-6-18 at 
p. 3. Rule 9610 specifically requires the District to submit to EPA, no 
later than August 31 of each year, an ``annual demonstration report'' 
that includes the following elements: (1) Identification of SIP-
creditable emission reductions generated through incentive programs 
implemented in the preceding year(s), summarized by pollutant, years 
that the emission reductions occur (project life), cost effectiveness, 
funding amount, incentive program guideline, and project type; (2) 
identification of SIP commitment(s) that the District has satisfied, in 
whole or in part, through SIP-creditable emission reductions from the 
identified incentive programs; (3) identification and quantification of 
SIP commitment shortfalls, if any, and remedies for addressing said 
shortfalls; (4) detailed information about each specific project 
achieving SIP-creditable emission reductions, e.g., unique project 
identification numbers, implementation dates, applicable incentive 
program guideline(s), and quantified emission reductions per year and 
aggregated over the project life, by pollutant; and (5) a summary of 
monitoring and enforcement activities conducted during the reporting 
period for incentive projects for which SIP-creditable emission 
reductions are being claimed. See Rule 9610, sections 4.1-4.6 and 5.0.
    The second key component is a commitment to adopt and submit to 
EPA, no later than December 31, 2016, ``substitute rules and measures 
that will achieve equivalent emission reductions as expeditiously as 
practicable and no later than any applicable implementation deadline in 
the CAA or EPA's implementing regulations,'' if there is a shortfall in 
emission reductions. SJVUAPCD Board Resolution No. 13-6-18, p. 3. 
Consistent with this commitment, EPA expects the District to confirm as 
part of its 2014 and 2015 Annual Demonstration Reports whether the 
claimed 4.15 tpd of NOX reductions and 0.10 tpd of direct 
PM2.5 reductions are expected to occur in 2015 as projected, 
and to provide the basis for its conclusion--e.g., information about 
actual program participation rates, actual reported activity data, 
project audits, usage reports, and other project monitoring activities 
consistent with the requirements of Rule 9610, section 4.0. If the 
District finds that there may be a shortfall in the claimed emission 
reductions for 2015, the District will be required to identify in its 
2014 or 2015 Annual Demonstration Report both the estimated amount of 
the SIP shortfall (in tons per day, by pollutant) and the specific 
remedy to be implemented in the event of a shortfall--i.e., the 
substitute rules and measures that will achieve equivalent emission 
reductions, to be submitted to EPA no later than December 31, 2016. See 
Rule 9610, section 4.4 (``The District shall identify and quantify SIP 
commitment shortfalls, if any, and remedies for addressing said 
shortfalls'' as part of the annual demonstration report). Finally, EPA 
expects the District's 2016 Annual Demonstration Report will either 
confirm that the claimed 4.15 tpd of NOX reductions and 0.10 
tpd of direct PM2.5 reductions actually occurred in 2015 as 
projected or identify and quantify the specific SIP shortfalls and 
specific remedies to be implemented consistent with the District's 
commitment. Any conclusion that the District's claimed 4.15 tpd of 
NOX reductions and 0.10 tpd of PM2.5 reductions 
actually occurred in 2015 must be supported by documentation of actual 
emissions, based on historical annual usage (i.e., reported activity 
data), actual program participation rates, project audits, and other 
information consistent with the requirements of sections 4.0 to 4.6 of 
Rule 9610. For a more detailed discussion of our evaluation of these 
commitments, see Proposal TSD, pp. 42 to 44.
    These Board commitments obligate the District to monitor, assess, 
and report on program implementation and

[[Page 53122]]

actual emission reductions achieved and, ultimately, enable EPA and the 
public to determine whether the District's claimed emission reductions 
(4.15 tpd of NOX reductions and 0.10 tpd of direct 
PM2.5 reductions) actually occurred in 2015. Based on the 
District's long history of successful implementation and enforcement of 
Prop 1B and Carl Moyer Program grants and the detailed requirements in 
the associated incentive program guidelines, we fully expect that 
SJVUAPCD will achieve the required emission reductions in 2015 as 
projected. However, should EPA find based on the 2014 or 2015 Annual 
Demonstration Report that the District's claimed 4.15 tpd of 
NOX reductions and 0.10 tpd of direct PM2.5 
reductions may not occur in 2015 as projected, EPA will promptly notify 
the District of its potential obligation to adopt and submit substitute 
rules and measures consistent with its Board commitment no later than 
December 31, 2016, so that the District has ample time to develop and 
adopt such rules/measures consistent with this deadline. Subsequently, 
should EPA determine that the SJV area has failed to attain the 
PM2.5 NAAQS by the applicable attainment date of April 5, 
2015, the District will be obligated to verify through its next annual 
report (i.e., the 2016 Annual Demonstration Report) whether the 4.15 
tpd of NOX reductions and 0.10 tpd of PM2.5 
reductions identified in the Contingency Measure SIP occurred in 2015, 
and if not, to adopt and submit substitute rules and measures to EPA 
consistent with its Board commitment no later than December 31, 2016.
iv. Conclusion on SJVUAPCD's Incentive-Based Emission Reductions
    Based on our evaluation of the District's commitments regarding the 
Carl Moyer Program and Prop 1B and related technical documentation 
provided by the District in its SIP submission, we propose to find that 
the 2015 emission reductions associated with these specific incentive 
programs satisfy the statutory criteria for SIP credit and to approve 
these emission reductions as attainment contingency measures for the 
1997 PM2.5 NAAQS in the SJV. Upon EPA's final approval of 
the Contingency Measure SIP, the District's commitments will become 
federally enforceable and will obligate it to monitor, assess, and 
report to EPA on implementation of the Carl Moyer Program and Prop 1B 
program grants with respect to the specific Prop 1B and Carl Moyer 
projects identified in EPA's Proposal TSD. See Proposal TSD at 
Attachment A (``Prop 1B: On-Road Vehicle Replacement projects achieving 
emission reductions through 2015'') and Attachment B (``Carl Moyer 
Program: Off-Road Vehicle Replacement projects achieving emission 
reductions through 2015'').
    EPA supports and encourages the continuing efforts by CARB, the 
District, and NRCS to make incentive programs and voluntary measures an 
effective part of the SJV's strategy for clean air. We commit to 
continue our work with these agencies to establish reliable procedures 
for documenting the emission reductions associated with voluntary and 
incentive programs for SIP purposes, in particular through the 
District's implementation of Rule 9610, which EPA intends to act on in 
the near future. Our collective goal is to establish a process that 
ensures that the emission reductions resulting from voluntary and 
incentive programs are quantifiable, surplus, enforceable, and 
permanent consistent with CAA requirements as interpreted in EPA 
guidance. We welcome public comments on how best to achieve this goal.
c. Substitution of Direct PM2.5 Reductions for 
NOX Reductions
    The District estimated, based on monitored air quality over the 
past five winter seasons, that triggering the contingency provision in 
the District's woodburning rule would reduce direct PM2.5 
emissions by a further 3.12 tpd. See Contingency Measure SIP, p. 6. 
This level of reduction exceeds the 2.5 tpd of direct PM2.5 
reductions needed to meet the CAA contingency requirement for this 
pollutant by 0.62 tpd. Taking into account the 0.1 tpd of direct 
PM2.5 reductions from incentive programs discussed above in 
section III.C.2.b, the District then converted the total amount of 
surplus direct PM2.5 reductions (0.72 tpd) into 
NOX reductions at a ratio of 9 tons of NOX for 
each ton of direct PM2.5. Based on this PM2.5 to 
NOX conversion, the District concluded that a 0.72 tpd 
reduction in direct PM2.5 emissions has the same ambient air 
quality impact as a 6.48 tpd reduction in NOX emissions.
    Using the Community Multiscale Air Quality (CMAQ) modeling 
application underlying the attainment demonstration in the SJV 
PM2.5 Plan,\30\ CARB developed an equivalency ratio between 
emission reductions of direct PM2.5 and of NOX. 
For each pollutant, CARB modeled the ambient effect of a 10 percent 
reduction of emissions over the modeling domain. The concentration 
change per emission change gave a precursor effectiveness value for 
NOX and an effectiveness value for direct PM2.5. 
The ratio of these two effectiveness values provided the 
NOX-PM2.5 equivalency ratio.
---------------------------------------------------------------------------

    \30\ EPA approved this air quality modeling as part of its 
approval of the attainment demonstration in the SJV PM2.5 
Plan. See 76 FR 41338, 41349 and 76 FR 69896, 69924.
---------------------------------------------------------------------------

    Emission reductions of direct PM2.5 from the District's 
wood burning restrictions tend to be concentrated in the SJV's urban 
areas. These urban areas also typically record the highest 
PM2.5 ambient levels in the SJV. As explained above, the 
District is proposing to substitute these urban-centered direct 
PM2.5 reductions for region-wide NOX reductions. 
Because these wood burning reductions are concentrated in areas most 
like to experience high levels of ambient PM2.5, their 
impact on these ambient levels will likely be greater than the same 
amount of PM2.5 reductions distributed over the entire 
nonattainment area. CARB's full modeling domain approach, which assumed 
distributed PM2.5 reductions, will therefore tend to 
underestimate the impact of direct PM2.5 reductions from 
wood burning restrictions on ambient concentrations. As a result the 
9:1 ratio of NOX to PM2.5 emission reductions in 
this case gives a conservatively high estimate of the direct 
PM2.5 emission reductions needed to substitute for a given 
amount of NOX reductions. EPA proposes to approve the use of 
this ratio for purposes of quantifying emission reductions to satisfy 
the CAA section 172(c)(9) attainment contingency measure requirement 
for the 1997 PM2.5 NAAQS in the SJV.\31\ For further 
information, see the Proposal TSD, pp. 44-45.
---------------------------------------------------------------------------

    \31\ EPA has previously approved the use of this ratio for use 
in transportation conformity determinations for the 1997 
PM2.5 NAAQS in the SJV. See 76 FR 69896, 69923. See also 
76 FR 41338, 41349 (noting adequacy of CARB's ratio for purposes of 
assessing the effect of ``area-wide emissions changes,'' e.g., to 
address RFP, contingency measures, and conformity budgets).
---------------------------------------------------------------------------

d. Summary
    In sum, EPA believes that the Contingency Measure SIP identifies 
SIP-creditable attainment contingency measures that will achieve a 
total of 31.6 tpd of NOX, 2.5 tpd of direct 
PM2.5, and 3 tpd of SOX reductions in 2015. EPA 
believes that these emission reductions will equal or exceed one-year's 
worth of RFP as calculated in EPA's 2011 final action on the SJV 
PM2.5 SIP. See Table 1.

[[Page 53123]]



           Table 1-- Summary of 2015 Emission Reductions Creditable as Attainment Contingency Measures
                                                [In tons per day]
----------------------------------------------------------------------------------------------------------------
                                                 NOX                  Direct PM2.5                 SOX
----------------------------------------------------------------------------------------------------------------
California/Federal Mobile Source       21.....................                           .......................
 Control Program.
Surplus SOX Reductions from CARB and   .......................  .......................  3.
 District Rules.
[Incentive Programs].................  4.15...................  0.1                      .......................
Contingency Provision in District      0.3....................  3.1                      .......................
 Rule 4901.
Substitution of surplus direct PM2.5   6.5....................  -0.7                     .......................
 reductions for NOX reductions.
                                      --------------------------------------------------------------------------
    TOTAL EMISSION REDUCTIONS:.......  31.9...................  2.5....................  3.
Emission reductions equal to one-      31.6...................  2.5....................  0.2.
 year's worth of RFP \32\.
Contingency measure requirement met?.  Yes....................  Yes....................  Yes.
----------------------------------------------------------------------------------------------------------------

    Based on our evaluation, we are proposing to fully approve the 
Contingency Measure SIP as satisfying the attainment contingency 
measure requirement in CAA section 172(c)(9) for the 1997 
PM2.5 NAAQS in the San Joaquin Valley nonattainment area. 
All of the emission reductions relied on to meet the attainment 
contingency measure requirement are provided by control measures or 
incentive programs that are fully adopted under State law. These 
measures and programs provide SIP-creditable emission reductions that 
are not relied on in the SJV PM2.5 SIP to demonstrate RFP or 
attainment and provide for an appropriate level of continued emission 
reduction progress should the SJV area fail to attain by its statutory 
attainment date and necessitate additional planning.
---------------------------------------------------------------------------

    \32\ See ibid.
---------------------------------------------------------------------------

D. Clean Air Act Section 110(l)

    CAA section 110(l) prohibits EPA from approving any SIP revision 
that would interfere with any applicable requirement concerning 
attainment and RFP or any other applicable CAA requirement. The 
Contingency Measure SIP corrects SIP deficiencies identified in EPA's 
November 9, 2011 partial approval and partial disapproval of the SJV 
PM2.5 SIP (76 FR 69896). Specifically, the Contingency 
Measure SIP contains: (1) the District's demonstration that actual 
emission levels in the SJV in 2012 were below the approved 2012 RFP 
milestone year targets and (2) identification of SIP-creditable 
emission reductions to be achieved in 2015 that are not relied on for 
RFP or expeditious attainment. The Contingency Measure SIP does not 
alter any existing emission limitation or other control requirement in 
the applicable SIP and only expands upon the contingency measure 
portion of the SJV PM2.5 SIP, which EPA had partially 
disapproved in November 2011. We propose to determine that our approval 
of the Contingency Measure SIP would comply with CAA section 110(l) 
because the proposed SIP revision would not interfere with the on-going 
process for ensuring that requirements for RFP and attainment of the 
NAAQS are met, and the submitted SIP corrects SIP deficiencies that 
were the basis for EPA's November 9, 2011 partial disapproval of the 
SJV PM2.5 SIP.

IV. Proposed Actions and Request for Public Comment

    For the reasons discussed above, we are proposing to conclude that 
the Contingency Measure SIP submitted by CARB on July 3, 2013, 
satisfies the attainment contingency measure requirement in CAA section 
172(c)(9) for the 1997 PM2.5 NAAQS in the San Joaquin Valley 
nonattainment area and to fully approve this submission into the 
California SIP. We are also proposing to conclude that the RFP 
contingency measure requirement in CAA section 172(c)(9) for the 2012 
milestone year is moot as applied to the San Joaquin Valley because the 
area achieved its approved emissions targets for the 2012 RFP milestone 
year. Finally, we are proposing to approve enforceable commitments by 
the SJVUAPCD to monitor, assess, and report on actual NOX 
and direct PM2.5 emission reductions achieved through its 
implementation of specific Prop 1B and Carl Moyer Program grants and to 
remedy any identified emission reduction shortfall in a timely manner.
    Finalizing these proposals would correct the deficiencies that were 
the basis for EPA's partial disapproval of the SJV PM2.5 SIP 
on November 9, 2011 (76 FR 69896) and would, therefore, terminate the 
CAA section 179(b) sanction and sanction clocks triggered by that 
action and the obligation on EPA to promulgate a federal implementation 
plan under CAA section 110(c).
    We will accept comments from the public on these proposals for the 
next 30 days. The deadline and instructions for submission of comments 
are provided in the ``Date'' and ``Addresses'' sections at the 
beginning of this preamble.

V. 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, EPA's role is to approve State 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this proposed action merely proposes to approve State law 
as meeting Federal requirements and does not impose additional 
requirements beyond those imposed by State law. For that reason, 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.);

[[Page 53124]]

     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 EPA with the discretionary authority to 
address disproportionate human health or environmental effects with 
practical, appropriate, and legally permissible methods under Executive 
Order 12898 (59 FR 7629 (February 16, 1994)).
    In addition, this proposed action 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, Intergovernmental 
relations, Nitrogen dioxide, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides.

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

    Dated: August 15, 2013.
Jared Blumenfeld,
Regional Administrator, Region 9.
[FR Doc. 2013-21010 Filed 8-27-13; 8:45 am]
BILLING CODE 6560-50-P