[Federal Register Volume 82, Number 89 (Wednesday, May 10, 2017)]
[Proposed Rules]
[Pages 21751-21761]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-09392]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R04-OAR-2016-0213; FRL-9961-91-Region 4]
Air Plan Approval; Kentucky; Infrastructure Requirements for the
2012 PM2.5 National Ambient Air Quality Standard
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve portions of the State Implementation Plan (SIP) submission,
submitted by the Commonwealth of Kentucky, Energy and Environment
Cabinet, Department for Environmental Protection, through the Kentucky
Division for Air Quality (KDAQ), on February 8, 2016, to demonstrate
that the Commonwealth meets the infrastructure requirements of the
Clean Air Act (CAA or Act) for the 2012 Annual Particulate Matter
(PM2.5) national ambient air quality standard (NAAQS). The
CAA requires that each state adopt and submit a SIP for the
implementation, maintenance and enforcement of each NAAQS promulgated
by EPA, which is commonly referred to as an ``infrastructure'' SIP.
KDAQ certified that the Kentucky SIP contains provisions that ensure
the 2012 Annual PM2.5 NAAQS is implemented, enforced, and
maintained in Kentucky. EPA is proposing to determine that Kentucky's
infrastructure submission, submitted on February 8, 2016, addresses
certain infrastructure elements for the 2012 Annual PM2.5
NAAQS.
DATES: Written comments must be received on or before June 9, 2017.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2016-0213 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. EPA may publish any comment
received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e. on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
FOR FURTHER INFORMATION CONTACT: Tiereny Bell, Air Regulatory
Management Section, Air Planning and Implementation Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. Ms. Bell can be reached via electronic mail at
[email protected] or the telephone number (404) 562-9088.
SUPPLEMENTARY INFORMATION:
I. Background and Overview
On December 14, 2012 (78 FR 3086, January 15, 2013), EPA
promulgated a revised primary annual PM2.5 NAAQS. The
standard was strengthened from 15.0 micrograms per cubic meter ([mu]g/
m\3\) to 12.0 [mu]g/m\3\. Pursuant to section 110(a)(1) of the CAA,
states are required to submit SIPs meeting the applicable requirements
of section 110(a)(2) within three years after promulgation of a new or
revised NAAQS or within such shorter period as EPA may prescribe.
Section 110(a)(2) requires states to address basic SIP elements such as
requirements for monitoring, basic program requirements and legal
authority that are designed to assure attainment and maintenance of the
NAAQS. States were required to submit such SIPs for the 2012 Annual
PM2.5
[[Page 21752]]
NAAQS to EPA no later than December 14, 2015.\1\
---------------------------------------------------------------------------
\1\ In these infrastructure SIP submissions states generally
certify evidence of compliance with sections 110(a)(1) and (2) of
the CAA through a combination of state regulations and statutes,
some of which have been incorporated into the federally-approved
SIP. In addition, certain federally-approved, non-SIP regulations
may also be appropriate for demonstrating compliance with sections
110(a)(1) and (2). Throughout this rulemaking, unless otherwise
indicated, the term ``401 KAR XX:XXX'' indicates that the cited
regulation has either been approved, or submitted for approval into
Kentucky's federally-approved SIP. The statutes cited from the
Kentucky Revised Statutes (also referred to as ``KRS'') throughout
this rulemaking are not approved into the Kentucky SIP, unless
otherwise indicated.
---------------------------------------------------------------------------
This rulemaking is proposing to approve portions of Kentucky's
PM2.5 infrastructure SIP submission for the applicable
requirements of the 2012 Annual PM2.5 NAAQS, with the
exception of the interstate transport requirements of section
110(a)(2)(D)(i)(I) (prongs 1, 2 and 4), and the minor source program
requirements of section 110(a)(2)(C), for which EPA is not proposing
any action in this rulemaking regarding these requirements. For the
aspects of Kentucky's submittal proposed for approval in this
rulemaking, EPA notes that the Agency is not approving any specific
rule, but rather proposing that Kentucky's already approved SIP meets
certain CAA requirements.
II. What elements are required under Sections 110(a)(1) and (2)?
Section 110(a) of the CAA requires states to submit SIPs to provide
for the implementation, maintenance, and enforcement of a new or
revised NAAQS within three years following the promulgation of such
NAAQS, or within such shorter period as EPA may prescribe. Section
110(a) imposes the obligation upon states to make a SIP submission to
EPA for a new or revised NAAQS, but the contents of that submission may
vary depending upon the facts and circumstances. In particular, the
data and analytical tools available at the time the state develops and
submits the SIP for a new or revised NAAQS affects the content of the
submission. The contents of such SIP submissions may also vary
depending upon what provisions the state's existing SIP already
contains.
More specifically, section 110(a)(1) provides the procedural and
timing requirements for SIPs. Section 110(a)(2) lists specific elements
that states must meet for ``infrastructure'' SIP requirements related
to a newly established or revised NAAQS. As mentioned above, these
requirements include basic SIP elements such as requirements for
monitoring, basic program requirements and legal authority that are
designed to assure attainment and maintenance of the NAAQS. The
requirements that are the subject of this proposed rulemaking are
summarized below and in EPA's September 13, 2013, memorandum entitled
``Guidance on Infrastructure State Implementation Plan (SIP) Elements
under Clean Air Act Sections 110(a)(1) and 110(a)(2).'' \2\
\2\ Two elements identified in section 110(a)(2) are not
governed by the three year submission deadline of section 110(a)(1)
because SIPs incorporating necessary local nonattainment area
controls are not due within three years after promulgation of a new
or revised NAAQS, but rather due at the time the nonattainment area
plan requirements are due pursuant to section 172. These
requirements are: (1) Submissions required by section 110(a)(2)(C)
to the extent that subsection refers to a permit program as required
in part D, title I of the CAA; and (2) submissions required by
section 110(a)(2)(I) which pertain to the nonattainment planning
requirements of part D, title I of the CAA. This proposed rulemaking
does not address infrastructure elements related to section
110(a)(2)(I) or the nonattainment planning requirements of
110(a)(2)(C).
---------------------------------------------------------------------------
110(a)(2)(A): Emission Limits and Other Control Measures
110(a)(2)(B): Ambient Air Quality Monitoring/Data System
110(a)(2)(C): Programs for Enforcement of Control Measures and
for Construction or Modification of Stationary Sources
110(a)(2)(D)(i)(I) and (II): Interstate Pollution Transport
110(a)(2)(D)(ii): Interstate Pollution Abatement and
International Air Pollution
110(a)(2)(E): Adequate Resources and Authority, Conflict of
Interest, and Oversight of Local Governments and Regional Agencies
110(a)(2)(F): Stationary Source Monitoring and Reporting
110(a)(2)(G): Emergency Powers
110(a)(2)(H): SIP Revisions
110(a)(2)(I): Plan Revisions for Nonattainment Areas \3\
---------------------------------------------------------------------------
\3\ As mentioned above, this element is not relevant to this
proposed rulemaking.
---------------------------------------------------------------------------
110(a)(2)(J): Consultation with Government Officials, Public
Notification, and Prevention of Significant Deterioration (PSD) and
Visibility Protection
110(a)(2)(K): Air Quality Modeling and Submission of Modeling
Data
110(a)(2)(L): Permitting fees
110(a)(2)(M): Consultation and Participation by Affected Local
Entities
III. What is EPA's approach to the review of infrastructure SIP
submissions?
EPA is acting upon the SIP submission from Kentucky that addresses
the infrastructure requirements of CAA sections 110(a)(1) and 110(a)(2)
for the 2012 Annual PM2.5 NAAQS. The requirement for states
to make a SIP submission of this type arises out of CAA section
110(a)(1). Pursuant to section 110(a)(1), states must make SIP
submissions ``within 3 years (or such shorter period as the
Administrator may prescribe) after the promulgation of a national
primary ambient air quality standard (or any revision thereof),'' and
these SIP submissions are to provide for the ``implementation,
maintenance, and enforcement'' of such NAAQS. The statute directly
imposes on states the duty to make these SIP submissions, and the
requirement to make the submissions is not conditioned upon EPA's
taking any action other than promulgating a new or revised NAAQS.
Section 110(a)(2) includes a list of specific elements that ``[e]ach
such plan'' submission must address.
EPA has historically referred to these SIP submissions made for the
purpose of satisfying the requirements of CAA sections 110(a)(1) and
110(a)(2) as ``infrastructure SIP'' submissions. Although the term
``infrastructure SIP'' does not appear in the CAA, EPA uses the term to
distinguish this particular type of SIP submission from submissions
that are intended to satisfy other SIP requirements under the CAA, such
as ``nonattainment SIP'' or ``attainment plan SIP'' submissions to
address the nonattainment planning requirements of part D of title I of
the CAA, ``regional haze SIP'' submissions required by EPA rule to
address the visibility protection requirements of CAA section 169A, and
nonattainment new source review (NNSR) permit program submissions to
address the permit requirements of CAA, title I, part D.
Section 110(a)(1) addresses the timing and general requirements for
infrastructure SIP submissions, and section 110(a)(2) provides more
details concerning the required contents of these submissions. The list
of required elements provided in section 110(a)(2) contains a wide
variety of disparate provisions, some of which pertain to required
legal authority, some of which pertain to required substantive program
provisions, and some of which pertain to requirements for both
authority and substantive program provisions.\4\ EPA
[[Page 21753]]
therefore believes that while the timing requirement in section
110(a)(1) is unambiguous, some of the other statutory provisions are
ambiguous. In particular, EPA believes that the list of required
elements for infrastructure SIP submissions provided in section
110(a)(2) contains ambiguities concerning what is required for
inclusion in an infrastructure SIP submission.
---------------------------------------------------------------------------
\4\ For example: Section 110(a)(2)(E)(i) provides that states
must provide assurances that they have adequate legal authority
under state and local law to carry out the SIP; section 110(a)(2)(C)
provides that states must have a SIP-approved program to address
certain sources as required by part C of title I of the CAA; and
section 110(a)(2)(G) provides that states must have legal authority
to address emergencies as well as contingency plans that are
triggered in the event of such emergencies.
---------------------------------------------------------------------------
The following examples of ambiguities illustrate the need for EPA
to interpret some section 110(a)(1) and section 110(a)(2) requirements
with respect to infrastructure SIP submissions for a given new or
revised NAAQS. One example of ambiguity is that section 110(a)(2)
requires that ``each'' SIP submission must meet the list of
requirements therein, while EPA has long noted that this literal
reading of the statute is internally inconsistent and would create a
conflict with the nonattainment provisions in part D of title I of the
Act, which specifically address nonattainment SIP requirements.\5\
Section 110(a)(2)(I) pertains to nonattainment SIP requirements and
part D addresses when attainment plan SIP submissions to address
nonattainment area requirements are due. For example, section 172(b)
requires EPA to establish a schedule for submission of such plans for
certain pollutants when the Administrator promulgates the designation
of an area as nonattainment, and section 107(d)(1)(B) allows up to two
years, or in some cases three years, for such designations to be
promulgated.\6\ This ambiguity illustrates that rather than apply all
the stated requirements of section 110(a)(2) in a strict literal sense,
EPA must determine which provisions of section 110(a)(2) are applicable
for a particular infrastructure SIP submission.
---------------------------------------------------------------------------
\5\ See, e.g., ``Rule To Reduce Interstate Transport of Fine
Particulate Matter and Ozone (Clean Air Interstate Rule); Revisions
to Acid Rain Program; Revisions to the NOx SIP Call; Final Rule,''
70 FR 25162, at 25163--65 (May 12, 2005) (explaining relationship
between timing requirement of section 110(a)(2)(D) versus section
110(a)(2)(I)).
\6\ EPA notes that this ambiguity within section 110(a)(2) is
heightened by the fact that various subparts of part D set specific
dates for submission of certain types of SIP submissions in
designated nonattainment areas for various pollutants. Note, e.g.,
that section 182(a)(1) provides specific dates for submission of
emissions inventories for the ozone NAAQS. Some of these specific
dates are necessarily later than three years after promulgation of
the new or revised NAAQS.
---------------------------------------------------------------------------
Another example of ambiguity within sections 110(a)(1) and
110(a)(2) with respect to infrastructure SIPs pertains to whether
states must meet all of the infrastructure SIP requirements in a single
SIP submission, and whether EPA must act upon such SIP submission in a
single action. Although section 110(a)(1) directs states to submit ``a
plan'' to meet these requirements, EPA interprets the CAA to allow
states to make multiple SIP submissions separately addressing
infrastructure SIP elements for the same NAAQS. If states elect to make
such multiple SIP submissions to meet the infrastructure SIP
requirements, EPA can elect to act on such submissions either
individually or in a larger combined action.\7\ Similarly, EPA
interprets the CAA to allow it to take action on the individual parts
of one larger, comprehensive infrastructure SIP submission for a given
NAAQS without concurrent action on the entire submission. For example,
EPA has sometimes elected to act at different times on various elements
and sub-elements of the same infrastructure SIP submission.\8\
---------------------------------------------------------------------------
\7\ See, e.g., ``Approval and Promulgation of Implementation
Plans; New Mexico; Revisions to the New Source Review (NSR) State
Implementation Plan (SIP); Prevention of Significant Deterioration
(PSD) and Nonattainment New Source Review (NNSR) Permitting,'' 78 FR
4339 (January 22, 2013) (EPA's final action approving the structural
PSD elements of the New Mexico SIP submitted by the State separately
to meet the requirements of EPA's 2008 PM2.5 NSR rule),
and ``Approval and Promulgation of Air Quality Implementation Plans;
New Mexico; Infrastructure and Interstate Transport Requirements for
the 2006 PM2.5 NAAQS,'' (78 FR 4337) (January 22, 2013)
(EPA's final action on the infrastructure SIP for the 2006
PM2.5 NAAQS).
\8\ On December 14, 2007, the State of Tennessee, through the
Tennessee Department of Environment and Conservation, made a SIP
revision to EPA demonstrating that the State meets the requirements
of sections 110(a)(1) and (2). EPA proposed action for
infrastructure SIP elements (C) and (J) on January 23, 2012 (77 FR
3213) and took final action on March 14, 2012 (77 FR 14976). On
April 16, 2012 (77 FR 22533) and July 23, 2012 (77 FR 42997), EPA
took separate proposed and final actions on all other section
110(a)(2) infrastructure SIP elements of Tennessee's December 14,
2007, submittal.
---------------------------------------------------------------------------
Ambiguities within sections 110(a)(1) and 110(a)(2) may also arise
with respect to infrastructure SIP submission requirements for
different NAAQS. Thus, EPA notes that not every element of section
110(a)(2) would be relevant, or as relevant, or relevant in the same
way, for each new or revised NAAQS. The states' attendant
infrastructure SIP submissions for each NAAQS therefore could be
different. For example, the monitoring requirements that a state might
need to meet in its infrastructure SIP submission for purposes of
section 110(a)(2)(B) could be very different for different pollutants
because the content and scope of a state's infrastructure SIP
submission to meet this element might be very different for an entirely
new NAAQS than for a minor revision to an existing NAAQS.\9\
---------------------------------------------------------------------------
\9\ For example, implementation of the 1997 PM2.5
NAAQS required the deployment of a system of new monitors to measure
ambient levels of that new indicator species for the new NAAQS.
---------------------------------------------------------------------------
EPA notes that interpretation of section 110(a)(2) is also
necessary when EPA reviews other types of SIP submissions required
under the CAA. Therefore, as with infrastructure SIP submissions, EPA
also has to identify and interpret the relevant elements of section
110(a)(2) that logically apply to these other types of SIP submissions.
For example, section 172(c)(7) requires that attainment plan SIP
submissions required by part D have to meet the ``applicable
requirements'' of section 110(a)(2). Thus, for example, attainment plan
SIP submissions must meet the requirements of section 110(a)(2)(A)
regarding enforceable emission limits and control measures and section
110(a)(2)(E)(i) regarding air agency resources and authority. By
contrast, it is clear that attainment plan SIP submissions required by
part D would not need to meet the portion of section 110(a)(2)(C) that
pertains to the PSD program required in part C of title I of the CAA,
because PSD does not apply to a pollutant for which an area is
designated nonattainment and thus subject to part D planning
requirements. As this example illustrates, each type of SIP submission
may implicate some elements of section 110(a)(2) but not others.
Given the potential for ambiguity in some of the statutory language
of section 110(a)(1) and section 110(a)(2), EPA believes that it is
appropriate to interpret the ambiguous portions of section 110(a)(1)
and section 110(a)(2) in the context of acting on a particular SIP
submission. In other words, EPA assumes that Congress could not have
intended that each and every SIP submission, regardless of the NAAQS in
question or the history of SIP development for the relevant pollutant,
would meet each of the requirements, or meet each of them in the same
way. Therefore, EPA has adopted an approach under which it reviews
infrastructure SIP submissions against the list of elements in section
110(a)(2), but only to the extent each element applies for that
particular NAAQS.
Historically, EPA has elected to use guidance documents to make
recommendations to states for infrastructure SIPs, in some cases
conveying needed interpretations on newly arising issues and in some
cases conveying interpretations that have
[[Page 21754]]
already been developed and applied to individual SIP submissions for
particular elements.\10\ EPA most recently issued guidance for
infrastructure SIPs on September 13, 2013 (2013 Guidance).\11\ EPA
developed this document to provide states with up-to-date guidance for
infrastructure SIPs for any new or revised NAAQS. Within this guidance,
EPA describes the duty of states to make infrastructure SIP submissions
to meet basic structural SIP requirements within three years of
promulgation of a new or revised NAAQS. EPA also made recommendations
about many specific subsections of section 110(a)(2) that are relevant
in the context of infrastructure SIP submissions.\12\ The guidance also
discusses the substantively important issues that are germane to
certain subsections of section 110(a)(2). Significantly, EPA interprets
sections 110(a)(1) and 110(a)(2) such that infrastructure SIP
submissions need to address certain issues and need not address others.
Accordingly, EPA reviews each infrastructure SIP submission for
compliance with the applicable statutory provisions of section
110(a)(2), as appropriate.
---------------------------------------------------------------------------
\10\ EPA notes, however, that nothing in the CAA requires EPA to
provide guidance or to promulgate regulations for infrastructure SIP
submissions. The CAA directly applies to states and requires the
submission of infrastructure SIP submissions, regardless of whether
or not EPA provides guidance or regulations pertaining to such
submissions. EPA elects to issue such guidance in order to assist
states, as appropriate.
\11\ ``Guidance on Infrastructure State Implementation Plan
(SIP) Elements under Clean Air Act sections 110(a)(1) and
110(a)(2),'' Memorandum from Stephen D. Page, September 13, 2013.
\12\ EPA's September 13, 2013, guidance did not make
recommendations with respect to infrastructure SIP submissions to
address section 110(a)(2)(D)(i)(I). EPA issued the guidance shortly
after the U.S. Supreme Court agreed to review the D.C. Circuit
decision in EME Homer City, 696 F.3d7 (D.C. Cir. 2012) which had
interpreted the requirements of section 110(a)(2)(D)(i)(I). In light
of the uncertainty created by ongoing litigation, EPA elected not to
provide additional guidance on the requirements of section
110(a)(2)(D)(i)(I) at that time. As the guidance is neither binding
nor required by statute, whether EPA elects to provide guidance on a
particular section has no impact on a state's CAA obligations. On
March 17, 2016, EPA released a memorandum titled, ``Information on
the Interstate Transport `Good Neighbor' Provision for the 2012 Fine
Particulate Matter National Ambient Air Quality Standards under
Clean Air Act Section 110(a)(2)(D)(i)(I)'' to provide guidance to
states for interstate transport requirements specific to the
PM2.5 NAAQS.
---------------------------------------------------------------------------
As an example, section 110(a)(2)(E)(ii) is a required element of
section 110(a)(2) for infrastructure SIP submissions. Under this
element, a state must meet the substantive requirements of section 128,
which pertain to state boards that approve permits or enforcement
orders and heads of executive agencies with similar powers. Thus, EPA
reviews infrastructure SIP submissions to ensure that the state's
implementation plan appropriately addresses the requirements of section
110(a)(2)(E)(ii) and section 128. The 2013 Guidance explains EPA's
interpretation that there may be a variety of ways by which states can
appropriately address these substantive statutory requirements,
depending on the structure of an individual state's permitting or
enforcement program (e.g., whether permits and enforcement orders are
approved by a multi-member board or by a head of an executive agency).
However they are addressed by the state, the substantive requirements
of section 128 are necessarily included in EPA's evaluation of
infrastructure SIP submissions because section 110(a)(2)(E)(ii)
explicitly requires that the state satisfy the provisions of section
128.
As another example, EPA's review of infrastructure SIP submissions
with respect to the PSD program requirements in sections 110(a)(2)(C),
(D)(i)(II), and (J) focuses upon the structural PSD program
requirements contained in part C and EPA's PSD regulations. Structural
PSD program requirements include provisions necessary for the PSD
program to address all regulated sources and new source review (NSR)
pollutants, including greenhouse gases (GHGs). By contrast, structural
PSD program requirements do not include provisions that are not
required under EPA's regulations at 40 CFR 51.166 but are merely
available as an option for the state, such as the option to provide
grandfathering of complete permit applications with respect to the 2012
Annual PM2.5 NAAQS. Accordingly, the latter optional
provisions are types of provisions EPA considers irrelevant in the
context of an infrastructure SIP action.
For other section 110(a)(2) elements, however, EPA's review of a
state's infrastructure SIP submission focuses on assuring that the
state's SIP meets basic structural requirements. For example, section
110(a)(2)(C) includes, among other things, the requirement that states
have a program to regulate minor new sources. Thus, EPA evaluates
whether the state has an EPA-approved minor NSR program and whether the
program addresses the pollutants relevant to that NAAQS. In the context
of acting on an infrastructure SIP submission, however, EPA does not
think it is necessary to conduct a review of each and every provision
of a state's existing minor source program (i.e., already in the
existing SIP) for compliance with the requirements of the CAA and EPA's
regulations that pertain to such programs.
With respect to certain other issues, EPA does not believe that an
action on a state's infrastructure SIP submission is necessarily the
appropriate type of action in which to address possible deficiencies in
a state's existing SIP. These issues include: (i) Existing provisions
related to excess emissions from sources during periods of startup,
shutdown, or malfunction that may be contrary to the CAA and EPA's
policies addressing such excess emissions (``SSM''); (ii) existing
provisions related to ``director's variance'' or ``director's
discretion'' that may be contrary to the CAA because they purport to
allow revisions to SIP-approved emissions limits while limiting public
process or not requiring further approval by EPA; and (iii) existing
provisions for PSD programs that may be inconsistent with current
requirements of EPA's ``Final NSR Improvement Rule,'' 67 FR 80186
(December 31, 2002), as amended by 72 FR 32526 (June 13, 2007) (``NSR
Reform''). Thus, EPA believes it may approve an infrastructure SIP
submission without scrutinizing the totality of the existing SIP for
such potentially deficient provisions and may approve the submission
even if it is aware of such existing provisions.\13\ It is important to
note that EPA's approval of a state's infrastructure SIP submission
should not be construed as explicit or implicit re-approval of any
existing potentially deficient provisions that relate to the three
specific issues just described.
---------------------------------------------------------------------------
\13\ By contrast, EPA notes that if a state were to include a
new provision in an infrastructure SIP submission that contained a
legal deficiency, such as a new exemption for excess emissions
during SSM events, then EPA would need to evaluate that provision
for compliance against the rubric of applicable CAA requirements in
the context of the action on the infrastructure SIP.
---------------------------------------------------------------------------
EPA's approach to review of infrastructure SIP submissions is to
identify the CAA requirements that are logically applicable to that
submission. EPA believes that this approach to the review of a
particular infrastructure SIP submission is appropriate, because it
would not be reasonable to read the general requirements of section
110(a)(1) and the list of elements in 110(a)(2) as requiring review of
each and every provision of a state's existing SIP against all
requirements in the CAA and EPA regulations merely for purposes of
assuring that the state in question has the basic structural elements
for a functioning SIP for a new or revised NAAQS. Because SIPs have
[[Page 21755]]
grown by accretion over the decades as statutory and regulatory
requirements under the CAA have evolved, they may include some outmoded
provisions and historical artifacts. These provisions, while not fully
up to date, nevertheless may not pose a significant problem for the
purposes of ``implementation, maintenance, and enforcement'' of a new
or revised NAAQS when EPA evaluates adequacy of the infrastructure SIP
submission. EPA believes that a better approach is for states and EPA
to focus attention on those elements of section 110(a)(2) of the CAA
most likely to warrant a specific SIP revision due to the promulgation
of a new or revised NAAQS or other factors.
For example, EPA's 2013 Guidance gives simpler recommendations with
respect to carbon monoxide than other NAAQS pollutants to meet the
visibility requirements of section 110(a)(2)(D)(i)(II), because carbon
monoxide does not affect visibility. As a result, an infrastructure SIP
submission for any future new or revised NAAQS for carbon monoxide need
only state this fact in order to address the visibility prong of
section 110(a)(2)(D)(i)(II).
Finally, EPA believes that its approach with respect to
infrastructure SIP requirements is based on a reasonable reading of
sections 110(a)(1) and 110(a)(2) because the CAA provides other avenues
and mechanisms to address specific substantive deficiencies in existing
SIPs. These other statutory tools allow EPA to take appropriately
tailored action, depending upon the nature and severity of the alleged
SIP deficiency. Section 110(k)(5) authorizes EPA to issue a ``SIP
call'' whenever the Agency determines that a state's SIP is
substantially inadequate to attain or maintain the NAAQS, to mitigate
interstate transport, or to otherwise comply with the CAA.\14\ Section
110(k)(6) authorizes EPA to correct errors in past actions, such as
past approvals of SIP submissions.\15\ Significantly, EPA's
determination that an action on a state's infrastructure SIP submission
is not the appropriate time and place to address all potential existing
SIP deficiencies does not preclude EPA's subsequent reliance on
provisions in section 110(a)(2) as part of the basis for action to
correct those deficiencies at a later time. For example, although it
may not be appropriate to require a state to eliminate all existing
inappropriate director's discretion provisions in the course of acting
on an infrastructure SIP submission, EPA believes that section
110(a)(2)(A) may be among the statutory bases that EPA relies upon in
the course of addressing such deficiency in a subsequent action.\16\
---------------------------------------------------------------------------
\14\ For example, EPA issued a SIP call to Utah to address
specific existing SIP deficiencies related to the treatment of
excess emissions during SSM events. See ``Finding of Substantial
Inadequacy of Implementation Plan; Call for Utah State
Implementation Plan Revisions,'' 74 FR 21639 (April 18, 2011).
\15\ EPA has used this authority to correct errors in past
actions on SIP submissions related to PSD programs. See ``Limitation
of Approval of Prevention of Significant Deterioration Provisions
Concerning Greenhouse Gas Emitting-Sources in State Implementation
Plans; Final Rule,'' 75 FR 82536 (December 30, 2010). EPA has
previously used its authority under CAA section 110(k)(6) to remove
numerous other SIP provisions that the Agency determined it had
approved in error. See, e.g., 61 FR 38664 (July 25, 1996) and 62 FR
34641 (June 27, 1997) (corrections to American Samoa, Arizona,
California, Hawaii, and Nevada SIPs); 69 FR 67062 (November 16,
2004) (corrections to California SIP); and 74 FR 57051 (November 3,
2009) (corrections to Arizona and Nevada SIPs).
\16\ See, e.g., EPA's disapproval of a SIP submission from
Colorado on the grounds that it would have included a director's
discretion provision inconsistent with CAA requirements, including
section 110(a)(2)(A). See, e.g., 75 FR 42342 at 42344 (July 21,
2010) (proposed disapproval of director's discretion provisions); 76
FR 4540 (Jan. 26, 2011) (final disapproval of such provisions).
---------------------------------------------------------------------------
IV. What is EPA's analysis of how Kentucky addressed the elements of
the Sections 110(a)(1) and (2) ``Infrastructure'' provisions?
Kentucky's February 8, 2016 infrastructure submission addresses the
provisions of sections 110(a)(1) and (2) as described below.
1. 110(a)(2)(A) Emission Limits and Other Control Measures: Section
110(a)(2)(A) requires that each implementation plan 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. These requirements are met through Kentucky Revised
Statute (KRS) Chapter 224 Section 10-100 (KRS 224.10-100), which
provides the KDAQ the authority to administer all rules, regulations,
and orders promulgated under Chapter 224, and to provide for the
prevention, abatement, and control of all water, land, and air
pollution.
KDAQ cited to chapters and associated Kentucky Administrative
Regulations (KAR) under Title 401 to demonstrate that the Commonwealth
meets the requirements of this element, including the following:
Chapter 50 General Administrative Procedures: 401 KAR
50:010. Definitions for 401 KAR Chapter 50; 401 KAR 50:012. General
application; 401 KAR 50:015. Documents incorporated by reference; 401
KAR 50:020. Air quality control regions; 401 KAR 50:025. Classification
of counties; 401 KAR 50:040. Air quality models; 401 KAR 50:042. Good
engineering practice stack height; 401 KAR 50:045. Performance tests;
401 KAR 50:047. Test procedures for capture efficiency; 401 KAR 50:050.
Monitoring; 401 KAR 50:055. General compliance requirements; and 401
KAR 50:060. Enforcement.
Chapter 51 Attainment and Maintenance of the National
Ambient Air Quality Standards: 401 KAR 51:001. Definitions for 401 KAR
Chapter 51; 401 KAR 51:005. Purpose and General Provisions; 401 KAR
51:010. Attainment Status Designations; 401 KAR 51:017. Prevention of
significant deterioration of air quality; 401 KAR 51:052. Review of new
sources in or impacting upon nonattainment areas.
Chapter 52 Permits, Registrations, and Prohibitory Rules:
401 KAR 52:001. Definitions for 401 KAR Chapter 52; 401 KAR 52:020.
Title V permits; \17\ 401 KAR 52:030. Federally-enforceable permits for
nonmajor sources; 401 KAR 52:090. Prohibitorv rule for hot mix asphalt
plants; 401 KAR 53:005. General provisions; 401 KAR 53:010. Ambient air
quality standards.
---------------------------------------------------------------------------
\17\ This rule is not approved into Kentucky's federally-
approved SIP.
---------------------------------------------------------------------------
Collectively these regulations establish enforceable emissions
limitations and other control measures, means or techniques, for
activities that contribute to PM2.5 concentrations in the
ambient air and provide authority for KDAQ to establish such limits and
measures as well as schedules for compliance to meet the applicable
requirements of the CAA. EPA has made the preliminary determination
that the provisions contained in these regulations, and Kentucky's
statute are adequate for enforceable emission limitations and other
control measures, means, or techniques, as well as schedules and
timetables for compliance for the 2012 Annual PM2.5 NAAQS in
the Commonwealth.
In this action, EPA is not proposing to approve or disapprove any
existing Commonwealth provisions with regard to excess emissions during
SSM operations at a facility. EPA believes that a number of states have
SSM provisions which are contrary to the CAA and existing EPA guidance,
``State Implementation Plans: Policy Regarding Excess Emissions During
Malfunctions, Startup, and Shutdown'' (September 20, 1999), and the
Agency is addressing
[[Page 21756]]
such state regulations in a separate action.\18\
---------------------------------------------------------------------------
\18\ On June 12, 2015, EPA published a final action entitled,
``State Implementation Plans: Response to Petition for Rulemaking;
Restatement and Update of EPA's SSM Policy Applicable to SIPs;
Findings of Substantial Inadequacy; and SIP Calls to Amend
Provisions Applying to Excess Emissions During Periods of Startup,
Shutdown, and Malfunction.'' See 80 FR 33840.
---------------------------------------------------------------------------
Additionally, in this action, EPA is not proposing to approve or
disapprove any existing state rules with regard to director's
discretion or variance provisions. EPA believes that a number of states
have such provisions which are contrary to the CAA and existing EPA
guidance (52 FR 45109 (November 24, 1987)), and the Agency plans to
take action in the future to address such state regulations. In the
meantime, EPA encourages any state having a director's discretion or
variance provision which is contrary to the CAA and EPA guidance to
take steps to correct the deficiency as soon as possible.
2. 110(a)(2)(B) Ambient Air Quality Monitoring/Data System: Section
110(a)(2)(B) requires SIPs to provide for establishment and operation
of appropriate devices, methods, systems, and procedures necessary to
(i) monitor, compile, and analyze data on ambient air quality, and (ii)
upon request, make such data available to the Administrator. These
requirements are met through KRS 224.10-100 (22), which provides KDAQ
the authority to require the installation, maintenance, and use of
equipment, devices, or tests and methodologies to monitor the nature
and amount of any substance emitted into the ambient air and to provide
the information to the Cabinet.
KDAQ cites the following regulations to demonstrate that the
Commonwealth meets the requirements of this element: 401 KAR 50:050.
Monitoring; 401 KAR 51:017. Prevention of significant deterioration of
air quality; and 401 KAR 51:052. Review of new sources in or impacting
upon nonattainment areas; 401 KAR 53:005. General provisions; 401 KAR
53:010. Ambient air quality standards.
These SIP-approved rules and Kentucky's statute, along with
Kentucky's Ambient Air Monitoring Network Plan, provide for the
establishment and operation of ambient air quality monitors, the
compilation and analysis of ambient air quality data, and the
submission of these data to EPA upon request. Annually, states develop
and submit to EPA for approval statewide ambient monitoring network
plans consistent with the requirements of 40 CFR parts 50, 53, and 58.
The annual network plan involves an evaluation of any proposed changes
to the monitoring network, includes the annual ambient monitoring
network design plan and a certified evaluation of the agency's ambient
monitors and auxiliary support equipment.\19\ KDAQ's monitoring network
plan was submitted on June 27, 2016, and approved by EPA on October 25,
2016. Kentucky's approved monitoring network plan can be accessed at
www.regulations.gov using Docket ID No. EPA-R04-OAR-2016-0213. EPA has
made the preliminary determination that Kentucky's SIP and practices
are adequate for the ambient air quality monitoring and data system
related to the 2012 Annual PM2.5 NAAQS.
---------------------------------------------------------------------------
\19\ On occasion, proposed changes to the monitoring network are
evaluated outside of the network plan approval process in accordance
with 40 CFR part 58.
---------------------------------------------------------------------------
3. 110(a)(2)(C) Programs for Enforcement of Control Measures and
for Construction or Modification of Stationary Sources: This element
consists of three sub-elements: Enforcement, state-wide regulation of
new and modified minor sources and minor modifications of major
sources, and preconstruction permitting of major sources and major
modifications in areas designated attainment or unclassifiable for the
subject NAAQS as required by CAA title I part C (i.e., the major source
PSD program). These requirements are met through 401 KAR 50:060.
Enforcement; 401 KAR 51:017. Prevention of significant deterioration of
air quality; and 401 KAR 51:052. Review of new sources in or impacting
upon nonattainment areas. Collectively, these regulations enable KDAQ
to regulate sources contributing to the 2012 Annual PM2.5
NAAQS. EPA's analysis of how these provisions of Kentucky's SIP address
each sub-element (with the exception of the minor source program
requirements, as set forth below) is described below.
Enforcement: KDAQ's SIP-approved regulation, 401 KAR 50:060.
Enforcement, provides for enforcement of PM2.5 emission
limits and control measures through permit and compliance schedule
modifications and revocations, and authorizes administrative penalties
and injunctive relief, citing to statutory civil penalty and injunctive
relief provisions of KRS 224.99-010. EPA has made the preliminary
determination that Kentucky's SIP is adequate for enforcement related
to the 2012 Annual PM2.5 NAAQS.
PSD Permitting for Major Sources: EPA interprets the PSD sub-
element to require that a state's infrastructure SIP submission for a
particular NAAQS demonstrate that the state has a complete PSD
permitting program in place covering the structural PSD requirements
for all regulated NSR pollutants. A state's PSD permitting program is
complete for this sub-element (and prong 3 of D(i) and J related to
PSD) if EPA has already approved or is simultaneously approving the
state's SIP with respect to all structural PSD requirements that are
due under the EPA regulations or the CAA on or before the date of the
EPA's proposed action on the infrastructure SIP submission. For the
2012 Annual PM2.5 NAAQS, Kentucky's authority to regulate
new and modified sources to assist in the protection of air quality in
attainment or unclassifiable areas is established in KAR Chapter 51--
Attainment and Maintenance of the National Ambient Air Quality
Standards, which describes the permit requirements for new major
sources or major modifications of existing sources in areas classified
as attainment or unclassifiable under section 107(d)(1)(A)(ii) or (iii)
of the CAA. These requirements are designed to ensure that sources in
areas attaining the NAAQS at the time of designations prevent any
significant deterioration in air quality. Chapter 51 also establishes
the permitting requirements for areas in or around nonattainment areas
and provides the Commonwealth's statutory authority to enforce
regulations relating to attainment and maintenance of the NAAQS.
Kentucky's infrastructure SIP submission demonstrates that new
major sources and major modifications in areas of the Commonwealth
designated attainment or unclassifiable for the specified NAAQS are
subject to a federally-approved PSD permitting program meeting all the
current structural requirements of part C of title I of the CAA to
satisfy the infrastructure SIP PSD elements.\20\ EPA has made the
preliminary determination that Kentucky's SIP is adequate for PSD
permitting for major sources related to the 2012 Annual
PM2.5 NAAQS.
---------------------------------------------------------------------------
\20\ For more information concerning how the Kentucky
infrastructure SIP submission currently meets applicable structural
PSD program requirements, see the technical support document in the
docket for this proposed rulemaking.
---------------------------------------------------------------------------
Regulation of minor sources and minor modifications: Section
110(a)(2)(C) also requires the SIP to include provisions that govern
the minor source preconstruction program that regulates emissions of
the 2012 Annual PM2.5 NAAQS. EPA is not proposing any action
in this rulemaking related to the regulation of minor
[[Page 21757]]
sources and minor modifications under section 110(a)(2)(C) and will
consider these requirements in relation to Kentucky's 2012 Annual
PM2.5 NAAQS infrastructure submission in a separate
rulemaking.
4. 110(a)(2)(D)(i)(I) and (II) Interstate Pollution Transport:
Section 110(a)(2)(D)(i) has two components: 110(a)(2)(D)(i)(I) and
110(a)(2)(D)(i)(II). Each of these components has two subparts
resulting in four distinct components, commonly referred to as
``prongs,'' that must be addressed in infrastructure SIP submissions.
The first two prongs, which are codified in section 110(a)(2)(D)(i)(I),
are provisions that prohibit any source or other type of emissions
activity in one state from contributing significantly to nonattainment
of the NAAQS in another state (``prong 1''), and interfering with
maintenance of the NAAQS in another state (``prong 2''). The third and
fourth prongs, which are codified in section 110(a)(2)(D)(i)(II), are
provisions that prohibit emissions activity in one state from
interfering with measures required to prevent significant deterioration
of air quality in another state (``prong 3''), or to protect visibility
in another state (``prong 4'').
110(a)(2)(D)(i)(I)--prongs 1 and 2: EPA is not proposing any action
in this rulemaking related to the interstate transport provisions
pertaining to the contribution to nonattainment or interference with
maintenance in other states of section 110(a)(2)(D)(i)(I) (prongs 1 and
2). EPA will consider these requirements in relation to Kentucky's 2012
Annual PM2.5 NAAQS infrastructure submission in a separate
rulemaking.
110(a)(2)(D)(i)(II)--prong 3: With regard to section
110(a)(2)(D)(i)(II), the PSD element, referred to as prong 3, this
requirement may be met by a state's confirmation in an infrastructure
SIP submission that new major sources and major modifications in the
state are subject to: A PSD program meeting all the current structural
requirements of part C of title I of the CAA, or (if the state contains
a nonattainment area that has the potential to impact PSD in another
state) to a NNSR program. As discussed in more detail above under
section 110(a)(2)(C), Kentucky's SIP contains the relevant SIP
revisions necessary to satisfy the structural PSD requirements of prong
3. Kentucky's SIP-approved NNSR program is found at 401 KAR 51:052.
Review of new sources in or impacting upon nonattainment areas. EPA has
made the preliminary determination that Kentucky's SIP is adequate for
interstate transport for permitting of major sources and major
modifications related to the 2012 Annual PM2.5 NAAQS for
section 110(a)(2)(D)(i)(II) (prong 3).
110(a)(2)(D)(i)(II)--prong 4: EPA is not proposing any action in
this rulemaking related to the interstate transport provisions
pertaining to visibility protection in other states of section
110(a)(2)(D)(i)(II) (prong 4) and will consider these requirements in
relation to Kentucky's 2012 Annual PM2.5 NAAQS
infrastructure submission in a separate rulemaking.
5. 110(a)(2)(D)(ii) Interstate and International Transport
Provisions: Section 110(a)(2)(D)(ii) requires SIPs to include
provisions ensuring compliance with sections 115 and 126 of the Act,
relating to interstate and international pollution abatement.
Regulation 401 KAR 51:010. Attainment Status Designations designates
the status of all areas of the Commonwealth of Kentucky with regard to
attainment of the NAAQS. Regulation 401 KAR 51:017. Prevention of
significant deterioration of air quality and Regulation 401 KAR 51:052.
Review of new sources in or impacting upon nonattainment areas, Section
1, require Kentucky to provide notice to nearby states that may be
affected by proposed major source modifications. These regulations cite
to Federal notification requirements under 40 CFR Sections 51.166 and
52.21, and to 401 KAR 52:100. Public, affected state, and US. EPA
review, Section 6, which requires that public notice for permit actions
be provided to affected states. Additionally, Kentucky does not have
any pending obligation under sections 115 and 126 of the CAA. EPA has
made the preliminary determination that Kentucky's SIP is adequate for
ensuring compliance with the applicable requirements relating to
interstate and international pollution abatement for the 2012 Annual
PM2.5 NAAQS.
6. 110(a)(2)(E) Adequate Resources and Authority, Conflict of
Interest, and Oversight of Local Governments and Regional Agencies:
Section 110(a)(2)(E) requires that each implementation plan provide:
(i) Necessary assurances that the state will have adequate personnel,
funding, and authority under state law to carry out its implementation
plan, (ii) that the state comply with the requirements respecting state
boards pursuant to section 128 of the Act, and (iii) necessary
assurances that, where the state has relied on a local or regional
government, agency, or instrumentality for the implementation of any
plan provision, the state has responsibility for ensuring adequate
implementation of such plan provisions. EPA is proposing to approve
Kentucky's SIP submission as meeting the requirements of sub-elements
110(a)(2)(E)(i), (ii), and (iii).
In support of EPA's proposal to approve elements 110(a)(2)(E)(i)
and (iii), KDAQ's infrastructure submission demonstrates that it is
responsible for promulgating rules and regulations for the NAAQS,
emissions standards, general policies, a system of permits, fee
schedules for the review of plans, and other planning needs. With
respect to having the necessary funding and authority to implement the
Kentucky SIP, Kentucky regulation, 401 KAR 50:038. Air Emissions Fee,
and the following State statutes support sub-elements (i) and (iii):
KRS 224.10-100. Powers and Duties of the Cabinet and KRS 224.10-020.
Departments within the cabinet--Offices and divisions within the
departments--Appointments. As evidence of the adequacy of KDAQ's
resources with respect to sub-elements (i) and (iii), EPA submitted a
letter to KDAQ on April 19, 2016, outlining 105 grant commitments and
current status of these commitments for fiscal year 2015. The letter
EPA submitted to KDAQ can be accessed at www.regulations.gov using
Docket ID No. EPA-R04-OAR-2016-0213. Annually, states update these
grant commitments based on current SIP requirements, air quality
planning, and applicable requirements related to the NAAQS. There were
no outstanding issues in relation to the SIP for fiscal year 2015,
therefore, KDAQ's grants were finalized and closed out. EPA has made
the preliminary determination that Kentucky has adequate resources for
implementation of the 2012 Annual PM2.5 NAAQS. Accordingly,
EPA is proposing to approve Kentucky's infrastructure SIP submission
with respect to section 110(a)(2)(E)(i) and (iii).
Section 110(a)(2)(E)(ii) requires that Kentucky comply with section
128 of the CAA. Section 128 requires at 128(a)(1) the majority of
members of the state board or body which approves permits or
enforcement orders represent the public interest and do not derive any
significant portion of their income from persons subject to permitting
or enforcement orders under the CAA; and 128(a)(2) any potential
conflicts of interest by such board or body, or the head of an
executive agency with similar, powers be adequately disclosed. For
purposes of section 128(a)(1), Kentucky has no boards or bodies with
authority over air pollution permits or enforcement actions. Such
matters are instead handled by the Director of the KDAQ. As such, a
``board or body'' is not responsible for approving permits or
enforcement orders in Kentucky, and
[[Page 21758]]
the requirements of section 128(a)(1) are not applicable. For purposes
of section 128(a)(2), KDAQ's SIP has been updated. On October 3, 2012,
EPA took final action to approve incorporation of KRS Chapters 11A.020,
11A.030, 11A.040 and Chapters 224.10-020 and 224.10-100 into the SIP to
address the conflict of interest requirements of section 128. See 77 FR
60307. These SIP-approved state statutes establish the powers and
duties of the Cabinet, departments within the Cabinet, and offices and
divisions within such departments (Chapters 224.10-020 and 224.10-100),
and support sub-element (ii) by requiring adequate disclosures of
potential conflicts (KRS 11A.020. Public servant prohibited from
certain conduct--Exception--Disclosure of personal or private interest)
and otherwise ensuring that public officers and servants do not engage
in activities that may present a conflict of interest (KRS 11A.030
Considerations in determination to abstain from action on official
decision--Advisory opinion; and KRS 11A.040 Acts prohibited for public
servant or officer--Exception). With the incorporation of these
regulations and statutes into the Kentucky SIP, EPA has made the
preliminary determination that the Commonwealth has adequately
addressed the requirements of section 128(a)(2), and accordingly has
met the requirements of section 110(a)(2)(E)(ii) with respect to
infrastructure SIP requirements. Thus, EPA is proposing approval of
KDAQ's infrastructure SIP submission for the 2012 Annual
PM2.5 NAAQS with respect to section 110(a)(2)(E)(ii).
7. 110(a)(2)(F) Stationary Source Monitoring and Reporting: Section
110(a)(2)(F) requires SIPs to meet applicable requirements addressing:
(i) The installation, maintenance, and replacement of equipment, and
the implementation of other necessary steps, by owners or operators of
stationary sources to monitor emissions from such sources, (ii)
periodic reports on the nature and amounts of emissions and emissions
related data from such sources, and (iii) correlation of such reports
by the state agency with any emission limitations or standards
established pursuant to this section, which reports shall be available
at reasonable times for public inspection. The Kentucky infrastructure
submission describes how the major source and minor source emission
inventory programs collect emission data throughout the Commonwealth
and ensure the quality of such data. Kentucky meets these requirements
through Chapter 50 General Administrative Procedures, specifically 401
KAR 50:050 Monitoring. 401 KAR 50:050, Section 1, Monitoring Records
and Reporting, states that the Cabinet may require a facility to
install, use, and maintain stack gas and ambient air monitoring
equipment and to establish and maintain records, and make periodic
emission reports at intervals prescribed by the Cabinet. 401 KAR 50:050
Monitoring, Section 1, Monitoring, Records, and Reporting, establishes
the requirements for the installation, use, and maintenance of stack
gas and ambient air monitoring equipment, and authorizes the Cabinet to
require the owner or operator of any affected facility to establish and
maintain records for this equipment and make periodic emission reports
at intervals prescribed by the Cabinet. Also, KRS 224.10-100 (23)
requires that any person engaged in any operation regulated pursuant to
this chapter file with the Cabinet reports containing information as to
location, size, height, rate of emission or discharge, and composition
of any substance discharged or emitted into the ambient air or into the
waters or onto the land of the Commonwealth, and such other information
the Cabinet may require. In addition, EPA is unaware of any provision
preventing the use of credible evidence in the Kentucky SIP.\21\
---------------------------------------------------------------------------
\21\ ``Credible Evidence,'' makes allowances for owners and/or
operators to utilize ``any credible evidence or information
relevant'' to demonstrate compliance with applicable requirements if
the appropriate performance or compliance test had been performed,
for the purpose of submitting compliance certification and can be
used to establish whether or not an owner or operator has violated
or is in violation of any rule or standard.
---------------------------------------------------------------------------
Additionally, Kentucky is required to submit emissions data to EPA
for purposes of the National Emissions Inventory (NEI). The NEI is
EPA's central repository for air emissions data. EPA published the Air
Emissions Reporting Rule (AERR) on December 5, 2008, which modified the
requirements for collecting and reporting air emissions data (73 FR
76539). The AERR shortened the time states had to report emissions data
from 17 to 12 months, giving states one calendar year to submit
emissions data. All states are required to submit a comprehensive
emissions inventory every three years and report emissions for certain
larger sources annually through EPA's online Emissions Inventory
System. States report emissions data for the six criteria pollutants
and the precursors that form them--nitrogen oxides, sulfur dioxides,
ammonia, lead, carbon monoxide, particulate matter, and volatile
organic compounds. Many states also voluntarily report emissions of
hazardous air pollutants. Kentucky made its latest update to the NEI on
November 6, 2014. EPA compiles the emissions data, supplementing it
where necessary, and releases it to the general public through the Web
site http://www.epa.gov/ttn/chief/eiinformation.html. EPA has made the
preliminary determination that Kentucky's SIP and practices are
adequate for the stationary source monitoring systems related to the
2012 Annual PM2.5 NAAQS. Accordingly, EPA is proposing to
approve Kentucky's infrastructure SIP submission with respect to
section 110(a)(2)(F).
8. 110(a)(2)(G) Emergency Powers: This section requires that states
demonstrate authority comparable with section 303 of the CAA and
adequate contingency plans to implement such authority. Kentucky's
infrastructure SIP submission identifies air pollution emergency
episodes and preplanned abatement strategies as outlined in the
following Kentucky regulations in Chapter 55 Emergency Episodes,
specifically: 401 KAR 55:005. Significant harm criteria, 401 KAR
55:010. Episode Criteria, and 401 KAR 55:015. Episode Declaration. 401
KAR 55:005. Significant Harm Criteria, Section 1, Purpose, defines
those levels of pollutant concentration which must be prevented in
order to avoid significant harm to the health of persons. 401 KAR
55:010. Episodic Criteria, defines those levels of pollutant
concentrations which justify the proclamation of an air pollution
alert, air pollution warning, an air pollution emergency. 401 KAR
55:015. Episode Declaration, provides for the curtailment or reduction
of processes or operations which emit an air contaminant or an air
contaminant precursor whose criteria has been reached and are located
in the affected areas for which an episode level has been declared.
In addition, KRS 224.10-100 Powers and duties of cabinet and KRS
224.10-410 Order for discontinuance, abatement, or alleviation of
condition or activity without hearing--Subsequent hearing, establish
the authority for Kentucky's secretary to issue orders to person(s) for
discontinuance, abatement, or alleviation of any condition or activity
without hearing because the condition or activity presents a danger to
the health or welfare of the people of the state, and for the Cabinet
to require adoption of any remedial measures deemed necessary. EPA has
made the preliminary determination that Kentucky's SIP, and state laws
are adequate for emergency powers related
[[Page 21759]]
to the 2012 Annual PM2.5 NAAQS. Accordingly, EPA is
proposing to approve Kentucky's infrastructure SIP submission with
respect to section 110(a)(2)(G).
9. 110(a)(2)(H) SIP Revisions: Section 110(a)(2)(H), in summary,
requires each SIP to provide for revisions of such plan: (i) As may be
necessary to take account of revisions of such national primary or
secondary ambient air quality standard or the availability of improved
or more expeditious methods of attaining such standard, and (ii)
whenever the Administrator finds that the plan is substantially
inadequate to attain the NAAQS or to otherwise comply with any
additional applicable requirements. As previously discussed, KDAQ is
responsible for adopting air quality rules and revising SIPs as needed
to attain or maintain the NAAQS. Kentucky has the ability and authority
to respond to calls for SIP revisions, and has provided a number of SIP
revisions over the years for implementation of the NAAQS.
KDAQ is responsible for adopting air quality rules and revising
SIPs as needed to attain or maintain the NAAQS in Kentucky. 401 KAR
Chapter 53 Ambient Air Quality and Chapter 51 Attainment and
Maintenance of the National Ambient Air Quality Standards grant KDAQ
the broad authority to implement the CAA, and as such, provides KDAQ
the authority to prepare and develop, after proper study, a
comprehensive plan for the prevention of air pollution. These statutes
also provide KDAQ the ability and authority to respond to calls for SIP
revisions, and KDAQ has provided a number of SIP revisions over the
years for implementation of the NAAQS. Additionally, 401 KAR 53:010
outlines the ambient air quality standards necessary for the protection
of the public health, the general welfare, and the property and people
in the Commonwealth and states that within 60 days of promulgation or
revision of any NAAQS by EPA, the Cabinet will initiate a process to
promulgate or review this administrative regulation. 401 KAR 51:010.
Attainment Status Designations provides provisions for the Cabinet to
review applicable data and submit to EPA proposed revisions to the list
of attainment-nonattainment areas. EPA has made the preliminary
determination that Kentucky adequately demonstrates a commitment to
provide future SIP revisions related to the 2012 Annual
PM2.5 NAAQS when necessary. Accordingly, EPA is proposing to
approve Kentucky's infrastructure SIP submission for the 2012 Annual
PM2.5 NAAQS with respect to section 110(a)(2)(H).
10. 110(a)(2)(J) Consultation with Government Officials, Public
Notification, and PSD and Visibility Protection: EPA is proposing to
approve Kentucky's infrastructure SIP submission for the 2012 Annual
PM2.5 NAAQS with respect to the general requirement in
section 110(a)(2)(J) to include a program in the SIP that provides for
meeting the applicable consultation requirements of section 121, the
public notification requirements of section 127, PSD, and visibility.
EPA's rationale for each sub-element is described below.
Consultation with government officials (121 consultation): Section
110(a)(2)(J) of the CAA requires states to provide a process for
consultation with local governments, designated organizations and
Federal Land Managers (FLMs) carrying out NAAQS implementation
requirements pursuant to section 121 relative to consultation. This
requirement is met through provisions in separate implementation plans,
such as the Regional Haze SIP, which provide for continued consultation
with government officials, including the FLMs. Kentucky adopted
consultation procedures in coordination with the transportation
partners in the Commonwealth, for the implementation of transportation
conformity, which includes the development of mobile inventories for
SIP development. Implementation of transportation conformity as
outlined in the consultation procedures requires KDAQ to consult with
Federal, state and local transportation and air quality agency
officials on the development of motor vehicle emissions budgets. Also,
KDAQ notes in its February 8, 2016, SIP submission that the following
Kentucky regulations provide the Commonwealth the authority to meet
this requirement: 401 KAR 50:055. General compliance requirements; 401
KAR 50:060. Enforcement; 401 KAR 50:065. Conformity of general federal
actions; 401 KAR 50:066. Conformity of Transportation Plans, Programs,
and Projects; 401 KAR 51:017. Prevention of Significant Deterioration
of Air Quality; and 401 KAR 51:052. Review of new sources in or
impacting upon nonattainment areas. EPA has made the preliminary
determination that Kentucky's SIP and practices adequately demonstrate
consultation with government officials related to the 2012 Annual
PM2.5 NAAQS when necessary for the consultation with
government officials element of section 110(a)(2)(J).
Public notification (127 public notification): These requirements
are met through the following Kentucky regulations: 401 KAR 51:001.
Definitions for 401 KAR Chapter 51; 401 KAR 51:005. Purpose and General
Provisions; 401 KAR 51:010. Attainment Status Designations; 401 KAR
51:017. Prevention of significant deterioration of air quality; 401 KAR
51:052. Review of new sources in or impacting upon nonattainment areas;
and 401 KAR 52:100. Public, Affected State, and US. EPA Review.
Additionally, Kentucky provides air quality information to the public
via its Web site at: http://eppcapp.ky.gov/daq/. EPA has made the
preliminary determination that Kentucky's SIP and practices adequately
demonstrate the Commonwealth's ability to provide public notification
related to the 2012 Annual PM2.5 NAAQS when necessary for
the public notification element of section 110(a)(2)(J).
PSD: With regard to the PSD element of section 110(a)(2)(J), this
requirement is met when a state's infrastructure SIP submission for a
particular NAAQS demonstrates that the state has a complete PSD
permitting program in place covering the structural PSD requirements
for all regulated NSR pollutants. As discussed in more detail above
under section 110(a)(2)(C), Kentucky's SIP contains the relevant SIP
revisions necessary to satisfy the structural PSD requirements of this
element of section 110(a)(2)(J). EPA has made the preliminary
determination that Kentucky's SIP is adequate for the PSD element of
section 110(a)(2)(J).
Visibility protection: EPA's 2013 Guidance notes that it does not
treat the visibility protection aspects of section 110(a)(2)(J) as
applicable for purposes of the infrastructure SIP approval process. EPA
recognizes that states are subject to visibility protection and
regional haze program requirements under Part C of the Act (which
includes sections 169A and 169B). However, there are no newly
applicable visibility protection obligations after the promulgation of
a new or revised NAAQS. Thus, EPA has determined that states do not
need to address the visibility component of 110(a)(2)(J) in
infrastructure SIP submittals. As such, EPA has made the determination
that it does not need to address the visibility protection element of
section 110(a)(2)(J) in Kentucky's infrastructure SIP submission
related to the 2012 Annual PM2.5 NAAQS.
11. 110(a)(2)(K) Air Quality Modeling and Submission of Modeling
Data: Section 110(a)(2)(K) of the CAA requires that SIPs provide for
performing air quality modeling so that effects on air quality of
emissions from NAAQS pollutants can be predicted and
[[Page 21760]]
submission of such data to the EPA can be made. This requirement is met
through Kentucky regulations 401 KAR 50:040. Air Quality Models and 401
KAR 50:050. Monitoring. Additionally, Kentucky participates in a
regional effort to coordinate the development of emissions inventories
and conduct regional modeling for several NAAQS, including the 2012
Annual PM2.5 NAAQS, for the Southeastern states. Taken as a
whole, Kentucky's air quality regulations and practices demonstrate
that KDAQ has the authority to provide relevant data for the purpose of
predicting the effect on ambient air quality of the 2012 Annual
PM2.5 NAAQS. EPA has made the preliminary determination that
Kentucky's SIP and practices adequately demonstrate the Commonwealth's
ability to provide for air quality modeling, along with analysis of the
associated data, related to the 2012 Annual PM2.5 NAAQS.
Accordingly, EPA is proposing to approve Kentucky's infrastructure SIP
submission with respect to section 110(a)(2)(K).
12. 110(a)(2)(L) Permitting Fees: This section requires the SIP to
direct the owner or operator of each major stationary source to pay to
the permitting authority, as a condition of any permit required under
the CAA, a fee sufficient to cover: (i) The reasonable costs of
reviewing and acting upon any application for such a permit, and (ii)
if the owner or operator receives a permit for such source, the
reasonable costs of implementing and enforcing the terms and conditions
of any such permit (not including any court costs or other costs
associated with any enforcement action), until such fee requirement is
superseded with respect to such sources by the Administrator's approval
of a fee program under title V.
Kentucky regulation, 401 KAR 50:038 Air Emissions Fee,\22\ provides
for the assessment of fees necessary to fund the state permit program.
KDAQ ensures this is sufficient for the reasonable cost of reviewing
and acting upon PSD and NNSR permits. Additionally, Kentucky has a
fully approved title V operating permit program at 401 KAR 52:020 Title
V permits \23\ that covers the cost of implementation and enforcement
of PSD and NNSR permits after they have been issued. EPA has made the
preliminary determination that Kentucky's SIP and practices adequately
provide for permitting fees related to the 2012 Annual PM2.5
NAAQS, when necessary. Accordingly, EPA is proposing to approve
Kentucky's infrastructure SIP submission with respect to section
110(a)(2)(L).
---------------------------------------------------------------------------
\22\ This rule is not approved into the federally approved SIP.
\23\ This rule is not approved into the federally approved SIP.
---------------------------------------------------------------------------
13. 110(a)(2)(M) Consultation and Participation by Affected Local
Entities: Section 110(a)(2)(M) of the Act requires states to provide
for consultation and participation in SIP development by local
political subdivisions affected by the SIP. This requirement is met
through provisions in separate implementation plans, such as the
regional haze SIP, which provide for continued consultation with
government officials, including the FLMs. Kentucky regulation, 401 KAR
50:066. Conformity of transportation plans, programs, and projects, and
the interagency consultation process as directed by Kentucky's approved
Conformity SIP and 40 CFR 93.112 provide for consultation with local
groups. More specifically, Kentucky adopted state-wide consultation
procedures for the implementation of transportation conformity which
includes the development of mobile inventories for SIP development and
the requirements that link transportation planning and air quality
planning in nonattainment and maintenance areas. Required partners
covered by Kentucky's consultation procedures include Federal, state
and local transportation and air quality agency officials. Further,
Kentucky's PM2.5 infrastructure SIP submission notes that
the following State regulations and State statutes provide the
Commonwealth the authority to meet the requirements of this element:
401 KAR 50:066. Conformity of transportation plans, programs, and
projects; 401 KAR 52:100. Public, Affected State, and US EPA Review;
and KRS Chapter 77. Air Pollution Control. EPA has made the preliminary
determination that Kentucky's SIP and practices adequately demonstrate
consultation with affected local entities related to the 2012 Annual
PM2.5 NAAQS when necessary.
V. Proposed Action
With the exception of interstate transport provisions pertaining to
the contribution to nonattainment or interference with maintenance in
other states and visibility protection requirements of section
110(a)(2)(D)(i)(I) and (II) (prongs 1, 2, and 4) and the minor source
program requirements of section 110(a)(2)(C), EPA is proposing to
approve Kentucky's February 8, 2016, infrastructure SIP submission for
the 2012 Annual PM2.5 NAAQS for the above described
infrastructure SIP requirements. EPA is proposing to approve these
portions of Kentucky's infrastructure SIP submission for the 2012
Annual PM2.5 NAAQS because these aspects of the submission
are consistent with section 110 of the CAA.
VI. Statutory and Executive Order Reviews
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
federal regulations. See 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. 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 Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the 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, the SIP is not approved to apply on any Indian
reservation land or in any other area where EPA or an Indian tribe has
demonstrated that a
[[Page 21761]]
tribe has jurisdiction. In those areas of Indian country, the rule does
not have tribal implications as specified by Executive Order 13175 (65
FR 67249, November 9, 2000), nor will it impose substantial direct
costs on tribal governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Volatile
organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: April 17, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
[FR Doc. 2017-09392 Filed 5-9-17; 8:45 am]
BILLING CODE 6560-50-P