[Federal Register Volume 82, Number 231 (Monday, December 4, 2017)]
[Rules and Regulations]
[Pages 57133-57135]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-25927]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R09-OAR-2017-0130; FRL-9970-68-Region 9]
Revisions to California State Implementation Plan; Bay Area Air
Quality Management District; Emission Reduction Credit Banking
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
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SUMMARY: The Environmental Protection Agency (EPA) is finalizing action
on a revision to the Bay Area Air Quality Management District (BAAQMD
or District) portion of the California State Implementation Plan (SIP).
We are finalizing a conditional approval of one rule. This revision
consists of updates to provisions governing the issuance and banking of
Emission Reduction Credits for use in the review and permitting of
major sources and major modifications under part D of title I of the
Clean Air Act (CAA).
DATES: This rule will be effective on January 3, 2018.
ADDRESSES: The EPA has established a docket for this action under
Docket No. EPA-R09-OAR-2017-0130. All documents in the docket are
listed on the http://www.regulations.gov Web site. Although listed in
the index, some information is not publicly available, e.g., CBI or
other information whose disclosure is restricted by statute. Certain
other material, such as copyrighted material, is not placed on the
Internet and will be publicly available only in hard copy form.
Publicly available docket materials are available through http://www.regulations.gov, or please contact the person identified in the FOR
FURTHER INFORMATION CONTACT section for additional availability
information.
FOR FURTHER INFORMATION CONTACT: Laura Yannayon, EPA Region 9, (415)
972-3534, [email protected].
SUPPLEMENTARY INFORMATION: Throughout this document, the terms ``we,''
``us,'' and ``our'' refer to EPA.
Table of Contents
I. Proposed Action
II. Public Comments and EPA Responses
III. EPA Action
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews
I. Proposed Action
On September 14, 2017 (82 FR 43202), the EPA proposed a conditional
approval of the following rule that was submitted for incorporation
into the BAAQMD portion of the California SIP.
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Table 1--Submitted Rule
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Adopted/
Regulation and rule No. Rule title amended Submitted
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Regulation 2, Rule 4 (Rule 2-4)............... Permits, Emissions Banking...... 12/19/12 4/22/13
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We proposed a conditional approval of Regulation 2, Rule 4 because
we determined that, separate from the deficiencies listed in Section
II.B of our proposed rulemaking action, the rule: ensures that issued
ERCs will meet the criteria laid out in 40 CFR
51.165(a)(3)(ii)(C)(1)(i) at the time of ERC issuance; satisfies the
requirements of 40 CFR 51.165(a)(3)(i); satisfies the applicable
requirements found in EPA's Emissions Trading Policy Statement; and
satisfies the requirements of 40 CFR 51.165(a)(3)(ii)(C)(1)(ii), which
requires pre-base year shutdown credits to be explicitly added back in
to the most recent applicable air quality plans. Moreover, we concluded
that if the District submits the changes it committed to submit in its
August 28, 2017 commitment letter, the identified deficiencies will be
cured.
II. Public Comments and EPA Responses
The EPA's proposed action provided a 30-day public comment period.
During this period, we received no comments.
III. EPA Action
No comments were submitted. Therefore, as authorized in sections
110(k)(4) and 301(a) of the Act, the EPA is finalizing conditional
approval of Regulation 2, Rule 4 into the BAAQMD portion of the
California SIP. If the State meets its commitment to submit the
required measures, the revisions to Rule 2-4 will remain a part of the
SIP until EPA takes final action approving or disapproving the new SIP
revisions. However, if the State fails to submit these revisions within
the required timeframe, the conditional approval will automatically
become a disapproval, and EPA will issue a finding of disapproval. EPA
is not required to propose the finding of disapproval.
There are no sanctions or Federal Implementation Plan (FIP)
implications should the conditional approval become a disapproval.
Sanctions would not be imposed under CAA section 179(b) because the
submittal of Rule 2-4 is discretionary (i.e., not required to be
included in the SIP). See ETPS, 51 FR 43,813 at 43,825 (``[S]tates are
by no means required to adopt banking procedures, but . . . banks may
help states and communities realize important planning and
environmental benefits.''). A FIP would not be imposed under CAA
section 110(c)(1) because the disapproval does not reveal a deficiency
in the SIP that such a FIP must correct. Specifically: (1) The
deficiencies identified herein do not impact or undermine the
requirement that offsets satisfy the requirements of 40 CFR 51.165,
including the requirement that offsets must satisfy the offset
integrity criteria enumerated in 40 CFR 51.165(a)(3)(ii)(C)(1)(i) at
the time of use; and (2) Rule 2-4 is not a required CAA submittal
because states and air districts have the discretion, but are not
required, to adopt banking rules. This final action will incorporate
the submitted rule into the SIP, including those provisions identified
as deficient.
In addition, because we are finalizing our proposed action, we are
removing existing Regulation 2, Rule 4 from the BAAQMD portion of the
California SIP.
IV. Incorporation by Reference
In this rule, the EPA is finalizing regulatory text that includes
incorporation by reference. In accordance with requirements of 1 CFR
51.5, the EPA is finalizing the incorporation by reference of BAAQMD
Regulation 2, Rule 4 (Permits, Emissions Banking), as described in the
amendments to 40 CFR part 52 set forth below. The EPA has made, and
will continue to make, this document generally available electronically
through www.regulations.gov and in hard copy at the U.S. Environmental
Protection Agency, Region IX (Air-3), 75 Hawthorne Street, San
Francisco, CA 94105-3901.
V. Statutory and Executive Order Reviews
Additional information about these statutes and Executive Orders
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.
A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review
This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.
B. Paperwork Reduction Act (PRA)
This action does not impose an information collection burden under
the PRA because this action does not impose additional requirements
beyond those imposed by state law.
C. Regulatory Flexibility Act (RFA)
I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities beyond those
imposed by state law.
D. Unfunded Mandates Reform Act (UMRA)
This action does not contain any unfunded mandate as described in
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect
small governments. This action does not impose additional requirements
beyond those imposed by state law. Accordingly, no additional costs to
State, local, or tribal governments, or to the private sector, will
result from this action.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government.
F. Executive Order 13175: Coordination With Indian Tribal Governments
This action does not have tribal implications, as specified in
Executive Order 13175, because the SIP is not approved to apply on any
Indian reservation land or in any other area where the EPA or an Indian
tribe has demonstrated that a tribe has jurisdiction, and will not
impose substantial direct costs on tribal governments or preempt tribal
law. Thus, Executive Order 13175 does not apply to this action.
G. Executive Order 13045: Protection of Children From Environmental
Health Risks and Safety Risks
The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern
[[Page 57135]]
environmental health or safety risks that the EPA has reason to believe
may disproportionately affect children, per the definition of ``covered
regulatory action'' in section 2-202 of the Executive Order. This
action is not subject to Executive Order 13045 because it does not
impose additional requirements beyond those imposed by state law.
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211, because it is
not a significant regulatory action under Executive Order 12866.
I. National Technology Transfer and Advancement Act (NTTAA)
Section 12(d) of the NTTAA directs the EPA to use voluntary
consensus standards in its regulatory activities unless to do so would
be inconsistent with applicable law or otherwise impractical. The EPA
believes that this action is not subject to the requirements of section
12(d) of the NTTAA because application of those requirements would be
inconsistent with the CAA.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
The EPA lacks the discretionary authority to address environmental
justice in this rulemaking.
K. Congressional Review Act (CRA)
This action is subject to the CRA, and the EPA will submit a rule
report to each House of the Congress and to the Comptroller General of
the United States. This action is not a ``major rule'' as defined by 5
U.S.C. 804(2).
L. Petitions for Judicial Review
Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by February 2, 2018. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this rule for the purposes of judicial
review nor does it extend the time within which a petition for judicial
review may be filed, and shall not postpone the effectiveness of such
rule or action. This action may not be challenged later in proceedings
to enforce its requirements (see section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, New Source Review, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Volatile
organic compounds.
Authority: 42 U.S.C. 7401 et seq.
Dated: October 31, 2017.
Deborah Jordan,
Acting Regional Administrator, Region IX.
Part 52, chapter I, title 40 of the Code of Federal Regulations is
amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart F--California
0
2. Section 52.220 is amended by adding paragraphs (c)(199)(i)(A)(10)
and (c)(429)(i)(E)(3) to read as follows:
Sec. 52.220 Identification of plan--in part.
* * * * *
(c) * * *
(199) * * *
(i) * * *
(A) * * *
(10) Previously approved on January 26, 1999 in paragraph
(c)(199)(i)(A)(8) of this section and now deleted with replacement in
(c)(429)(i)(E)(3), Regulation 2, Rule 4 adopted on June 15, 1994.
* * * * *
(429) * * *
(i) * * *
(E) * * *
(3) Regulation 2, ``Permits,'' Rule 4, ``Emissions Banking,''
adopted on December 19, 2012.
* * * * *
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3. Section 52.248 is amended by adding paragraph (c) to read as
follows:
Sec. 52.248 Identification of plan--conditional approval.
* * * * *
(c) The EPA is conditionally approving a California State
Implementation Plan (SIP) revision submitted on April 22, 2013,
updating Regulation 2--Permits, Rule 4--Emissions Banking. The
conditional approval is based on a commitment from the State to submit
a SIP revision that will correct the identified deficiencies in this
rule. If the State fails to meet its commitment by November 1, 2018,
the conditional approval is treated as a disapproval.
[FR Doc. 2017-25927 Filed 12-1-17; 8:45 am]
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