Approval and Promulgation of Air Quality Implementation Plans; Utah; New Source Review

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[UT11-1-6726a, UT12-1-6727a, and UT13-1-6746a; FRL-5184-5]

Approval and Promulgation of Air Quality Implementation Plans;

Utah; New Source Review

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: In this document, EPA is approving revisions to the State

Implementation Plan (SIP) submitted by the Governor of Utah on November

12, 1993 and on May 20, 1994. The November 12, 1993 submittal included

revisions to the State's new source review (NSR) permitting regulations

to meet the new NSR requirements of the amended Clean Air Act (Act) for

all of its nonattainment areas. The May 20, 1994 submittal included a

revision to the State's definition of volatile organic compounds. The

Governor submitted the nonattainment NSR rules with numerous other

ozone SIP revisions and an ozone redesignation request for the Salt

Lake and Davis County nonattainment areas. EPA will be acting on the

other portions of the Governor's November 12, 1993 submittal in

separate notices. EPA finds that the State's NSR rules meet the Federal

nonattainment NSR permitting requirements of the Act for all of its

nonattainment areas, and that the State's revised definition of

volatile organic compounds is consistent with the federal definition.

DATES: This final rule is effective on July 5, 1995 unless adverse or

critical comments are received by June 5, 1995. If the effective date

is delayed, timely notice will be published in the Federal Register.

ADDRESSES: Comments should be addressed to Vicki Stamper, 8ART-AP, at

the EPA Regional Office listed. Copies of the State's submittal and

other relevant information are available for [[Page 22278]] inspection

during normal business hours at the following locations: Air Programs

Branch, U.S. Environmental Protection Agency, Region VIII, 999 18th

Street, suite 500, Denver, Colorado 80202-2466; and Division of Air

Quality, Utah Department of Environmental Quality, P.O. Box 44820, 150

North 1950 West, Salt Lake City, Utah 84114-4820.

FOR FURTHER INFORMATION CONTACT: Vicki Stamper, 8ART-AP, U.S.

Environmental Protection Agency, Region VIII, 999 18th Street, suite

500, Denver, Colorado 80202-2466, (303) 293-1765.

SUPPLEMENTARY INFORMATION:

I. Background

A. Nonattainment NSR Requirements of the Amended Act

The air quality planning requirements for nonattainment NSR are set

out in part D of title I of the Act. The EPA has issued a ``General

Preamble'' describing EPA's preliminary views on how EPA intends to

review SIPs and SIP revisions submitted under part D, including those

State submittals containing nonattainment area NSR SIP requirements

(see 57 FR 13498 (April 16, 1992) and 57 FR 18070 (April 28, 1992)).

Because EPA is describing its interpretations here only in broad terms,

the reader should refer to the General Preamble for a more detailed

discussion of the interpretations of part D advanced in this notice and

the supporting rationale. A brief discussion of the specific elements

required in a State's nonattainment NSR program is also included in

Section II.B. of this notice.

EPA is currently developing rule revisions to implement the changes

under the 1990 Clean Air Act Amendments in the NSR provisions of parts

C and D of title I of the Act. The EPA anticipates that the proposed

rule will be published for public comment in early 1995. If EPA has not

taken final action on States' NSR submittals by that time, EPA may

generally refer to the proposed rule as the most authoritative guidance

available regarding the approvability of the submittals. EPA expects to

take final action to promulgate the rule revisions to implement the

part C and D changes in early 1996. Upon promulgation of those revised

regulations, EPA will review NSR SIPs to determine whether additional

SIP revisions are necessary to satisfy the requirements of the

rulemaking.

Prior to EPA approval of a State's NSR SIP submission, the State

may continue permitting only in accordance with the new statutory

requirements for permit applications completed after the relevant SIP

submittal date. This policy was explained in transition guidance

memoranda from John Seitz dated March 11, 1991 and September 3, 1992.

As explained in the March 11 memorandum, EPA does not believe

Congress intended to mandate the more stringent title I NSR

requirements during the time provided for SIP development. States were

thus allowed to continue to issue permits consistent with requirements

in their current NSR SIPs during that period, or to apply 40 CFR 51,

Appendix S for newly designated areas that did not previously have NSR

SIP requirements.

The September 3, 1992 memorandum also addressed the situation where

States did not submit the part D NSR SIP revisions by the applicable

statutory deadline. For permit applications complete by the SIP

submittal deadline, States may issue final permits under the prior NSR

rules, assuming certain conditions in the September 3 memorandum are

met. However, for applications completed after the SIP submittal

deadline, EPA will consider the source to be in compliance with the Act

where the source obtains from the State a permit that is consistent

with the substantive new NSR part D provisions in the amended Act. EPA

believes this guidance continues to apply to permitting pending final

action on Utah's NSR SIP submittal.

B. Volatile Organic Compound Definition

On February 3, 1992, EPA promulgated a definition of volatile

organic compounds (VOCs) in 40 CFR 51.100(s). See 57 FR 3941-3946.

Therefore, Utah updated its definition of VOCs in its regulations to

reflect the federal definition. That revised definition was submitted

by the State on June 10, 1994.

II. Analysis of State Submission

Section 110(k) of the Act sets out provisions governing EPA's

review of SIP submittals (see 57 FR 13565-13566).

A. Procedural Background

1. New Source Review Rules

The Act requires States to observe certain procedural requirements

in developing implementation plans and plan revisions for submission to

EPA. Section 110(a)(2) of the Act provides that each implementation

plan submitted by a State must be adopted after reasonable notice and

public hearing.1 Section 110(l) of the Act similarly provides that

each revision to an implementation plan submitted by a State under the

Act must be adopted by such State after reasonable notice and public

hearing.

\1\Section 172(c)(7) of the Act provides that plan provisions

for nonattainment areas shall meet the applicable provisions of

Section 110(a)(2).

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The EPA also must determine whether a submittal is complete and

therefore warrants further EPA review and action (see section 110(k)(1)

and 57 FR 13565, April 16, 1992). The EPA's completeness criteria for

SIP submittals are set out at 40 CFR part 51, appendix V. The EPA

attempts to make completeness determinations within 60 days of

receiving a submission. However, a submittal is deemed complete by

operation of law under section 110(k)(a)(B) if a completeness

determination is not made by EPA within 6 months after receipt of the

submission.

The State of Utah held public hearings on June 2, 1993 for the VOC/

nitrogen oxides (NOX) offset provisions and on August 4, 1993 for

the other NSR revisions to entertain public comment on these SIP

revisions. Following the public hearings, the VOC/NOX offset rule

was adopted by the State on June 17, 1993 and the other NSR revisions

were adopted on September 30, 1993. These rule revisions were submitted

to EPA on November 12, 1993 as a proposed revision to the SIP, along

with other ozone SIP revisions and the ozone redesignation request for

the Salt Lake and Davis County nonattainment areas.

Specifically, the State submitted revisions to its NSR permitting

regulations in Utah Air Conservation Regulation (UACR) R307-1-1 and

R307-1-3. The revisions to the State's NSR regulations were made to

bring the State's NSR rules for all of its nonattainment areas up-to-

date with the amended Act.

The SIP revisions were reviewed by EPA to determine completeness

shortly after its submittal, in accordance with the completeness

criteria referenced above. The initial submittal was found to be

incomplete, and a letter dated January 19, 1994 was forwarded to the

Governor indicating the administrative and technical deficiencies in

the submittal. The State of Utah sued EPA on March 18, 1994 regarding

EPA's incompleteness finding (State of Utah v. EPA, Case No. 94-9520).

As part of the lawsuit settlement, EPA agreed to allow the State to

repackage its submittal and request parallel processing of the ozone

redesignation request for Salt Lake and Davis Counties. Therefore, on

June 27, [[Page 22279]] 1994, the State submitted a request for

parallel processing of the ozone maintenance plan and resubmitted a

reorganized ozone redesignation request which included, among other

things, NSR rule revisions for all of the State's nonattainment areas.

On the basis of the State's reorganized redesignation request and

request for parallel processing, EPA withdrew the January 19, 1994

finding of incompleteness in a July 7, 1994 letter to the Governor and

deemed the State to have submitted a complete ozone redesignation

request, including a complete nonattainment area NSR submittal, on

November 12, 1993.

Since the increased emission offset ratio requirements for new and

modified sources of VOCs and NOX in the State's moderate ozone

nonattainment areas were not submitted by November 15, 1992, EPA made a

finding, pursuant to section 179 of the Act, that the State failed to

submit that SIP element and notified the Governor in a letter dated

January 15, 1993. After the VOC/NOX emission offset rules for the

State's ozone nonattainment areas were resubmitted on June 27, 1994

along with the reorganized ozone redesignation request, EPA determined

that the State's submittal was administratively and technically

complete on July 7, 1994 as stated above. This completeness

determination corrected the State's deficiency and, therefore,

terminated the 18-month sanctions clock under section 179 of the Act.

Promulgation of full approval of Utah's ozone NSR rules will

fulfill EPA's obligation under section 110(c)(1) of the Act, which

requires that EPA either approve the State's submittal or promulgate a

NSR Federal implementation plan (FIP) within 24 months of EPA's finding

that the State failed to submit the NSR rules (i.e, by January 15,

1995).

2. Volatile Organic Compound Definition

The State of Utah held a public hearing on March 9, 1993 for the

revisions to the definition of VOCs in UACR R307-1-1 to entertain

public comment on this SIP revision. Following the public hearing, the

revised VOC definition was adopted by the State on March 26, 1993. This

revision was submitted to EPA on May 20, 1994 as a proposed revision to

the SIP.

The SIP revision was reviewed by EPA to determine completeness

shortly after its submittal, in accordance with the completeness

criteria referenced above. The submittal was found to be complete, and

a letter dated October 20, 1994 was forwarded to the Governor

indicating the completeness of the submittal and the next steps to be

taken in the processing of the submittal.

B. Review of Submittal for Meeting the Nonattainment NSR Requirements

of the Act

1. General Nonattainment NSR Requirements

The general statutory requirements for nonattainment NSR SIPs and

permitting as amended by the 1990 Amendments are found in sections 172

and 173 of the Act. These requirements apply in all nonattainment

areas. The following represents EPA's review of the State's regulation

in meeting the NSR requirements of the amended Act:

(1) The amended Act repealed the construction ban provisions

previously found in section 110(a)(2)(I) with certain exceptions.

No construction bans are currently imposed in Utah, so this

requirement is inapplicable.

(2) Section 173(a)(1)(A) of the Act requires a demonstration for

permit issuance that the new source growth does not interfere with

reasonable further progress (RFP) for the area. In addition,

calculations of emissions offsets must be based on the same emissions

baseline used in the demonstration of RFP.

In UACR R307-1-3.3.2.C.(3), R307-1-3.3.3.A.(2), and R307-1-3.3.5,

the State has established provisions which adequately address section

173(a)(1).

(3) Section 173(c)(1) of the Act requires that offsets must

generally be obtained by the same source or other sources in the same

nonattainment area. However, offsets may be obtained from other

nonattainment areas if: The area in which the offsets are obtained has

an equal or higher nonattainment classification; and emissions from the

nonattainment area in which the offsets are obtained contribute to a

National Ambient Air Quality Standard (NAAQS) violation in the area in

which the source would construct.

In UACR R307-1-3.3.3.A.(1), the State has established provisions

that adequately meet this requirement of section 173(c)(1).

(4) Section 173(c)(1) of the Act requires that any emissions

offsets obtained in conjunction with the issuance of a permit to a new

or modified source must be in effect and enforceable by the time the

new or modified source commences operation.

In UACR R307.1.3.3.3.A.(2), the State has established provisions

that adequately meet this requirement of section 173(c)(1).

(5) Section 173(c)(1) of the Act requires that emissions increases

from new or modified major stationary sources are offset by real

reductions in actual emissions.

In UACR R307-1-3.3.3.A.(2), the State has established provisions

that adequately meet this requirement of section 173(c)(1).

(6) Section 173(c)(2) of the Act prohibits emissions reductions

otherwise required by the Act from being credited for purposes of

satisfying the part D offset requirements.

In UACR R307-1-3.3.3.A.(3), the State has established provisions

that adequately meet the requirements of section 173(c)(2).

(7) Section 173(a)(3) provides that, as a condition of permit

issuance, states must require the owner or operator of a proposed new

or modified source to demonstrate that all major stationary sources

under the same ownership or control are in compliance or are on a

schedule for compliance with all applicable emission limitations and

standards.

In UACR R307-1-3.3.2.C.(2), the State has established provisions

that adequately meet the requirements of section 173(a)(3).

(8) Section 173(a)(2) requires a new or modified major stationary

source to comply with the lowest achievable emission rate (LAER).

In UACR R307-1-3.3.2.C.(1), the State has established provisions

that adequately meet the requirements of section 173(a)(2).

(9) Revised sections 172(c)(4), 173(a)(1)(B), and 173(b) of the Act

limit and invalidate use of certain growth allowances in nonattainment

areas.

This requirement is inapplicable because the State of Utah has not

established any growth allowances in its nonattainment area SIPs.

(10) Revised section 173(a)(5) of the Act requires that, as a

prerequisite to issuing any part D permit, an analysis of alternative

sites, sizes, production processes, and environmental control

techniques for a proposed source must be completed which demonstrates

that the benefits of the proposed source significantly outweigh the

environmental and social costs imposed as a result of its location,

construction, or modification.

In UACR R307-1-3.1.10, the State has established provisions which

adequately address the requirements of section 173(a)(5).

(11) Section 173(d) of the Act requires States to submit control

technology information from permits to EPA for the purposes of making

such information [[Page 22280]] available through the RACT/BACT/LAER

clearinghouse.

Utah and EPA have established provisions in the annual State-EPA

agreement requiring the State to submit information from nonattainment

NSR permits to EPA's RACT/BACT/LAER clearinghouse. Thus, a process has

been established to meet this requirement.

(12) Section 173(e) of the Act provides that States may allow any

existing or modified source that tests rocket engines or motors to use

alternative or innovative means to offset emissions increases from

firing and related cleaning, under certain conditions.

In lieu of imposing any alternative offset measures the permitting

authority may impose an emission limit amounting to no more than 1.5

times the average cost of stationary control measures adopted in that

area during the previous three years.

In UACR R307-1-3.3.3.A.(4), the State has adopted provisions for

innovative offsetting for rocket engine and motor firing consistent

with sections 173(e)(1) through (e)(4) of the Act.

(13) Section 328 requires that sources located on the outer

continental shelf (OCS) must be subject to the same requirements as

would be applicable if the source were located in the corresponding

onshore area.

Since the State of Utah is landlocked and not adjacent to any

oceans, this requirement is inapplicable.

(14) Revised section 302(z) of the Act sets forth a new definition

of ``stationary source'' reflecting Congressional intent that certain

stationary internal combustion engines are subject to State regulation

under stationary source permitting programs, while certain ``nonroad

engines,'' defined in section 216(10), are generally excluded. On June

17, 1994, the EPA published regulations in 40 CFR Part 89 regarding new

nonroad engines and vehicles, including a definition of nonroad engine

(59 FR 31306).

EPA's action to approve this SIP revision is limited in that the

action does not approve any regulation of nonroad engines in a manner

inconsistent with section 209 of the Act and EPA regulations

implementing section 209.

2. Applicability of Utah's Nonattainment NSR Provisions

EPA's initial review of the State's nonattainment NSR rules found

that the applicability of the rules was unclear. Specifically, UACR

R307-1-3.3.2.C. states that the nonattainment NSR provisions apply to a

new or modified source if the Executive Secretary of the Utah Air

Quality Board finds that the emissions from the proposed source would

contribute to an existing violation of the NAAQS. EPA identified

concerns with this language in an August 25, 1994 letter to the State,

since applicability of the Federal nonattainment NSR requirements is

based on the fact that a new or modified major source proposes to

locate in a nonattainment area. In an October 18, 1994 letter, the

State Air Director provided clarification that, under the State's

rules, any new major source or major modification proposing to

construct in a nonattainment area would be considered to contribute to

an existing violation of the NAAQS and would therefore be subject to

all of the State's nonattainment NSR requirements. In addition, the

State's letter further explained that there is a more general

requirement in UACR R307-1-3.1.8.B. which specifically provides that

the Executive Secretary may only issue a permit if it is determined to

be in accord with the ``new source review requirements for

nonattainment areas under the Federal Clean Air Act.'' Thus, the

State's regulations require the State to comply with the Federal

nonattainment NSR requirements in approving any construction permit.

3. Nonattainment Area-Specific NSR Requirements

In addition to all of the general nonattainment NSR provisions

mentioned above, there are also nonattainment area-specific NSR

provisions in subparts 2, 3, and 4 of part D of the Act, some of which

supersede these general NSR provisions because they are more stringent.

The following provisions are the additional NSR provisions that apply

in Utah's nonattainment areas and represent EPA's review of the State's

regulation in meeting these requirements:

1. Ozone Nonattainment Areas

The general nonattainment NSR requirements discussed above are

found in sections 172 and 173 of part D of title I of the Act and must

be met in all nonattainment areas. Requirements for ozone that

supplement or supersede these requirements are found in subpart 2 of

part D. In addition, section 182(f) of subpart 2 states that the

requirements for major stationary sources of VOCs shall apply to major

stationary sources of NOX unless the Administrator makes certain

determinations related to the benefits or contribution of NOX

control to air quality.

Utah currently has two ozone nonattainment areas: Davis County and

Salt Lake County, both of which are currently classified as moderate.

(See 40 CFR 81.345 for Utah's ozone nonattainment area designations.)

For moderate ozone nonattainment areas, States must submit the

following NSR provisions, in addition to provisions meeting the general

NSR requirements in sections 172 and 173 of the Act discussed above:

a. Definition of the term ``major stationary source'' that reflects

the section 302(j) 100 tons per year (tpy) VOC and, presumptively, the

100 tpy NOX thresholds for determination of whether a source is

subject to the part D NSR requirements as a major source. In addition,

a 40 tpy significance level for defining major modifications of both

VOCs and NOX must be established consistent with the significance

level in 40 CFR 51.165(a)(1)(x).

b. Provisions to ensure that new or modified major stationary

sources obtain offsets under section 182(a)(4) of the Act at a ratio of

at least 1.15:1 in order to obtain an NSR permit.

In the applicable definition of ``major source'' in UACR R307-1-1,

the State has established a 100 tpy threshold for any source of VOCs or

NOX located in an ozone nonattainment area or a lesser amount if

required in part D of the Act. In addition, the definition of ``major

modification'' in R307-1-1 provides that a modification that is

significant for VOCs or NOX shall be considered significant for

ozone. The State has established a 40 tpy significance threshold for

both VOCs and NOX in the definition of ``significant'' in R307-1-

1. Lastly, UACR R307-1-3.3.3.C. requires an offset ratio of at least

1.15:1 be met by new and modified sources proposing to locate in ozone

nonattainment areas. Therefore, EPA finds that the State's NSR program

meets the requirements for all of its ozone nonattainment areas.

In addition to meeting the NSR requirements for ozone nonattainment

areas, the State has written the alternative siting analysis

requirement in R307-1-3.1.10 and the 1.15:1 offset requirement in R307-

1-3.3.3.C. to apply to new or modified major sources of VOCs or

NOX proposing to locate in the Salt Lake or Davis County area. In

addition, the State has retained the nonattainment NSR thresholds for

VOCs and NOX for defining a major source proposing to locate in

Salt Lake or Davis Counties (i.e., 100 tpy). Thus, the State intends

these two nonattainment NSR provisions to apply in the Salt Lake and

Davis County areas even after such areas are no longer designated

nonattainment areas. [[Page 22281]]

2. Carbon Monoxide Nonattainment Areas

The State of Utah has three CO nonattainment areas: Salt Lake City,

currently not classified, Ogden, currently classified as moderate with

a design value less than 12.7 parts per million (ppm), and Provo,

currently classified as moderate with a design value greater than 12.7

ppm. (See 40 CFR 81.345 for Utah's CO nonattainment area designations.)

For both not classified and moderate CO nonattainment areas, States

must submit the following NSR provisions, in addition to provisions

meeting the general NSR requirements in sections 172 and 173 of the Act

discussed above:

A definition of the term ``major stationary source'' that reflects

the section 302(j) 100 tpy CO threshold, and a 100 tpy significance

level for defining major modifications of CO consistent with the

significance level in 40 CFR 51.165(a)(1)(x).

In the applicable definition of ``major source'' in UACR R307-1-1,

the State has established a 100 tpy threshold for sources of CO

locating in a CO nonattainment area. In addition, the State has

established a 100 tpy significance threshold for CO in the definition

of ``significant'' in R307-1-1. Therefore, EPA finds that the State's

NSR rules meets the requirements for all of its CO nonattainment areas.

3. PM-10 Nonattainment Areas

The State of Utah has two PM-10 nonattainment areas, both of which

are currently classified as moderate: Salt Lake County and Utah County.

(See 40 CFR 81.345 for Utah's PM-10 nonattainment area designations.)

For moderate PM-10 nonattainment areas, States must submit the

following NSR provisions, in addition to provisions meeting the general

NSR requirements in sections 172 and 173 of the Act discussed above:

a. A definition of the term ``major stationary source'' that

reflects the section 302(j) 100 tpy PM-10 threshold, and a 15 tpy

significance level for defining major modifications of PM-10,

consistent with the significance level in 40 CFR part 51.

b. Section 189(e) of the amended Act requires that the control

requirements applicable to major stationary sources of PM-10 must also

apply to major stationary sources of PM-10 precursors, except where the

Administrator of EPA has determined that such sources do not contribute

significantly to PM-10 levels which exceed the standard in the area.

PM-10 precursors may include VOCs, which form secondary organic

compounds, sulfur dioxide (SO2), which forms sulfate compounds,

and NOX, which form nitrate compounds. Thus, unless the EPA

Administrator finds otherwise, States must submit rules applying all of

the NSR provisions mentioned above to sources of PM-10 precursors,

including the 100 tpy threshold for defining major stationary sources

and the current significance level thresholds in 40 CFR 51.165(a)(1)(x)

for each PM-10 precursor pollutant for defining major modifications.

EPA has not made a finding under section 189(e) that sources of PM-

10 precursors do not contribute significantly in Utah's PM-10

nonattainment areas. In EPA's notice of proposed approval of the Salt

Lake and Utah County PM-10 SIPs, EPA stated that PM-10 violations in

both counties were attributable to sources of both SO2 and

NOX (see 57 FR 60152, December 18, 1992). Approval of these PM-10

SIPs was promulgated on July 8, 1994 (59 FR 35036). Thus, in accordance

with section 189(e), Utah is required to regulate new and modified

major sources of SO2 and NOX as precursors to PM-10 in its

NSR permitting rules.

In the applicable definition of ``major source'' in UACR R307-1-1,

the State has established a 100 tpy threshold for any source of PM-10

or a PM-10 precursor located in a PM-10 nonattainment area or a lesser

amount if required in part D of the Act. ``PM-10 precursor'' is defined

in UACR R307-1-1 as including SO2 and NOX. In addition, the

definition of ``major modification'' in UACR R307-1-1 provides that a

modification that is significant for a PM-10 precursor shall be

considered significant for PM-10. The State has established a 15 tpy

significance level for PM-10 and 40 tpy significance levels for both

SO2 and NOX in the definition of ``significant'' in R307-1-1.

In UACR R307-1-3.3.3.B., the State has adopted an additional

provision requiring emission offsets for new and modified sources of

PM-10 and PM-10 precursors that may not normally be subject to the

nonattainment NSR permitting requirements. Specifically, this provision

requires new sources or modifications to existing sources with total

combined net emissions increases of PM-10, SO2, and NOX of

greater than or equal to 25 tpy to obtain emission offsets. For sources

or modifications between 25 and 50 tpy, the emission offset ratio

required is 1:1, and for sources or modifications equal to or greater

than 50 tpy, the emission offset ratio required is 1.2:1. For these

offset determinations, the State rule provides that PM-10, SO2,

and NOX will be treated on an equal basis.

This provision was originally submitted as a Group I PM-10 control

measure for these areas before nonattainment NSR rules for PM-10 were

required. This measure was continued as a control measure in the PM-10

SIP submittal for the Salt Lake and Utah County nonattainment areas,

which EPA approved on July 8, 1994 (59 FR 35036). The basis for this

measure, according to Section 9.A.7. of the Utah SIP, was to ensure new

growth did not increase the cap on industrial emissions. Since the

State now has adopted nonattainment NSR rules for new and modified

major sources of PM-10 or PM-10 precursors (i.e., new sources greater

than 100 tpy of PM-10 or a PM-10 precursor) in accordance with the

requirements of the amended Act, EPA interprets UACR R307-1-3.3.3.B. to

apply only to those new and modified sources which would not otherwise

be subject to the major source/major modification nonattainment NSR

provisions in R307-1-3.

It is necessary to make this distinction because, in determining

applicability to the major source nonattainment NSR requirements, EPA

only allows a source to consider reductions in the same pollutant when

calculating the potential to emit of a new source or the net emissions

increase from a modification. Also, in meeting the emission offset

requirement of the nonattainment NSR provisions once it is determined

that a source is subject to the nonattainment NSR provisions, EPA

currently only allows restricted interpollutant trading between PM-10

and PM-10 precursors. Specifically, new major sources or major

modifications of a PM-10 precursor are allowed to obtain offsets from

reductions in PM-10. Otherwise, new major sources and major

modifications must obtain offsets from reductions in the same

pollutant.

As discussed above under ``Applicability of Utah's Nonattainment

NSR Provisions,'' UACR R307-1-3.1.8.B. specifically provides that the

Executive Secretary may only issue a permit if it is determined to be

in accord with the ``new source review requirements for nonattainment

areas under the Federal Clean Air Act.'' Thus, in order for the State

to comply with this provision, the State must interpret its regulations

as stated in the above paragraph. Consequently, the State's provision

in UACR R307-1-3.3.3.B. applies to new sources or modifications which

would have combined emissions of PM-10 and PM-10 precursors greater

than or equal to 25 tpy, but this [[Page 22282]] provision does not

apply to any new source or modification considered to be major based on

the emissions of a single pollutant. In the case of a new major source

or major modification, the nonattainment NSR provisions for major

sources of UACR R307-1-3, including the general offset requirements in

R307-1-3.3.3.A., and the nonattainment NSR requirements under the Clean

Air Act would apply to such source or modification in accordance with

UACR R307-1-3.1.8.B.

Because the State has adequately addressed all of the other general

NSR requirements, EPA finds that the State's NSR program meets all of

the requirements for all of its PM-10 nonattainment areas.

4. Sulfur Dioxide Nonattainment Areas

The State of Utah has two SO2 nonattainment areas, which are

defined as Salt Lake County and portions of Tooele County. (See 40 CFR

81.345 for Utah's SO2 nonattainment area designations.) For

SO2 nonattainment areas, States must submit the following NSR

provisions, in addition to provisions meeting the general NSR

requirements in sections 172 and 173 of the Act discussed above:

A definition of the term ``major stationary source'' that reflects

the section 302(j) 100 tpy SO2 threshold, and a 40 tpy

significance level for defining major modifications of SO2,

consistent with the significance level in 40 CFR 51.165(a)(1)(x).

In the definition of ``major source'' in UACR R307-1-1, the State

has established a 100 tpy threshold for SO2. In addition, the

State has established a 40 tpy significance threshold for SO2 in

the definition of ``significant'' in R307-1-1. Therefore, EPA finds

that the State's NSR rules meets the requirements for all of its

SO2 nonattainment areas.

For further information on these requirements and the State's

provisions which meet these requirements, please see the Technical

Support Document (TSD) accompanying this notice.

C. Review of VOC Definition Submittal

EPA has reviewed the State's definition of VOC in UACR R307-1-1 and

finds that it is consistent with the federal definition in 40 CFR

51.100(s). For further information, see the TSD.

Final Action

EPA is approving the revisions to Utah's nonattainment NSR rules in

UACR R307-1-1 and R307-1-3, which were submitted by the Governor on

November 12, 1993 and May 20, 1994 for approval in the SIP. The State

of Utah has submitted an approvable plan to implement the NSR

provisions of part D of the Act. Each of the NSR program elements

discussed above have been adequately addressed in the State's

regulations for all of the State's nonattainment areas.

EPA's approval includes the following sections of the Utah Air

Conservation Regulations: (1) The forward of R307-1-1 and the following

definitions in R307-1-1 that have been revised since EPA's last

approval of R307-1-1 (July 8, 1994, 59 FR 35036) and which apply to the

State's NSR permitting program in R307-1-3: ``air contaminant,'' ``air

contaminant source,'' ``air pollution,'' ``allowable emissions,''

``ambient air,'' ``best available control technology (BACT),''

``board,'' ``department,'' ``dispersion technique,'' ``emission

limitation,'' ``executive director,'' ``executive secretary,'' ``major

modification,'' ``major source,'' ``PM-10 precursor,'' ``person,''

``temporary,'' and ``volatile organic compound (VOC);'' (2) R307-1-

3.1.8; 3) R307-1-3.1.10; and 4) R307-1-3.3.

The EPA is publishing this action without prior proposal because

the Agency views this as a noncontroversial action and anticipates no

adverse comments. However, in a separate document in this Federal

Register publication, the EPA is proposing to approve the SIP revision

should adverse or critical comments be filed. Under the procedures

established in the May 10, 1994 Federal Register (59 FR 24054), this

action will be effective on July 5, 1995 unless, by June 5, 1995,

adverse or critical comments are received.

If the EPA receives such comments, this action will be withdrawn

before the effective date by publishing a subsequent document that will

withdraw the final action. All public comments received will then be

addressed in a subsequent final rule based on this action serving as a

proposed rule. The EPA will not institute a second comment period on

this action. Any parties interested in commenting on this action should

do so at this time. If no such comments are received, the public is

advised that this action will be effective on July 5, 1995.

Nothing in this action should be construed as permitting or

allowing or establishing a precedent for any future request for

revision to any SIP. Each request for revision to any SIP shall be

considered separately in light of specific technical, economic, and

environmental factors and in relation to relevant statutory and

regulatory requirements.

The Office of Management and Budget (OMB) has exempted this

regulatory action from Executive Order 12866 review.

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et. seq., EPA

must prepare a regulatory flexibility analysis assessing the impact of

any proposed or final rule on small entities. 5 U.S.C. 603 and 604.

Alternatively, EPA may certify that the rule will not have a

significant economic impact on a substantial number of small entities.

Small entities include small businesses, small not-for-profit

enterprises, and government entities with jurisdiction over populations

of less than 50,000.

SIP approvals under section 110 and subchapter I, part D of the Act

do not create any new requirements, but simply approve requirements

that the State is already imposing. Therefore, because the Federal SIP-

approval does not impose any new requirements, I certify that it does

not have a significant impact on any small entities affected. Moreover,

due to the nature of the Federal-state relationship under the Act,

preparation of a regulatory flexibility analysis would constitute

Federal inquiry into the economic reasonableness of state action. The

Act forbids EPA to base its actions concerning SIPs on such grounds.

Union Electric Co. v. U.S. E.P.A., 427 U.S. 246, 256-66 (S.Ct. 1976);

42 U.S.C. 7410(a)(2).

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 July 5, 1995. 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, Carbon monoxide,

Hydrocarbons, Incorporation by reference, Intergovernmental relations,

Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and

recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

Dated: March 24, 1995.

Robert L. Duprey,

Acting Regional Administrator.

Part 52, chapter I, title 40 of the Code of Federal Regulations is

amended as follows: [[Page 22283]]

PART 52--[AMENDED]

1. The authority citation for part 52 continues to read as follows:

Authority: 42 U.S.C. 7401-7671q.

Subpart TT--Utah

2. Section 52.2320 is amended by adding paragraph (c)(28) to read

as follows:

Sec. 52.2320 Identification of plan.

* * * * *

(c) * * *

(28) On November 12, 1993, the Governor of Utah submitted revisions

to its permitting requirements to satisfy the nonattainment new source

review provisions in the amended Clean Air Act for all of its

nonattainment areas. On May 20, 1994, the Governor of Utah submitted a

revision to Utah's definition of volatile organic compounds.

(i) Incorporation by reference.

(A) Utah Air Conservation Regulations, R307-1-1, the forward and

the following definitions: ``air contaminant,'' ``air contaminant

source,'' ``air pollution,'' ``allowable emissions,'' ``ambient air,''

``best available control technology (BACT),'' ``board,''

``department,'' ``dispersion technique,'' ``emission limitation,''

``executive director,'' ``executive secretary,'' ``major

modification,'' ``major source,'' ``PM-10 precursor,'' ``person,''

``temporary,'' and ``volatile organic compound (VOC);'' effective

November 15, 1993, printed June 24, 1994.

(B) Utah Air Conservation Regulations, R307-1-3.1.8, R307-1-3.1.10,

and R307-1-3.3; effective August 16, 1993, printed May 26, 1994.

(ii) Additional material.

(A) Letter dated October 18, 1994 from Russell A. Roberts to

Douglas M. Skie clarifying applicability of Utah's nonattainment new

source review permitting requirements.

[FR Doc. 95-10821 Filed 5-4-95; 8:45 am]

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