Clean Air Act Approval and Promulgation of New Source Review; Implementation Plan Addressing New Source Review in Nonattainment Areas; Louisiana; Approval and Promulgation of Air Quality Implementation Plans; Louisiana Administrative Code (LAC), Title 33, Environmental Quality, Part III. Air, Chapter 5. Permit Procedures, Section 504. Nonattainment New Source Review (NSR) Procedures

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[LA-14-1-5941; FRL-5310-1]

Clean Air Act Approval and Promulgation of New Source Review;

Implementation Plan Addressing New Source Review in Nonattainment

Areas; Louisiana; Approval and Promulgation of Air Quality

Implementation Plans; Louisiana Administrative Code (LAC), Title 33,

Environmental Quality, Part III. Air, Chapter 5. Permit Procedures,

Section 504. Nonattainment New Source Review (NSR) Procedures

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The EPA proposes approval of the State Implementation Plan

(SIP) revision, submitted by the State of Louisiana for the purpose of

meeting requirements of the Clean Air Act (Act or CAA), as amended in

1990, with regard to NSR in areas that have not attained the national

ambient air quality standards (NAAQS).

DATES: Comments on this proposed action must be received in writing on

or before November 6, 1995.

ADDRESSEES: Written copies on this action should be addressed to Ms.

Jole C. Luehrs, Chief, Air Permits Section, at the EPA Regional Office

listed below. Copies of the documents relevant to this proposed action

are available for public inspection during normal business hours at the

following locations. The interested persons wanting to examine these

documents should make an appointment with the appropriate office at

least 24 hours before the visiting day.

U.S. Environmental Protection Agency, Region 6, Multimedia Planning and

Permitting Division (6PD), 1445 Ross Avenue, Suite 700, Dallas, Texas

75202-2733

Louisiana Department of Environmental Quality, H. B. Garlock Building,

7290 Bluebonnet Boulevard, Baton Rouge, Louisiana 70810.

FOR FURTHER INFORMATION CONTACT: Mr. Richard A. Barrett, Air Permits

Section (6PD-R), Multimedia Planning and Permitting Division, U.S. EPA

Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733, telephone (214)

665-7227, facsimile (214) 665-2164.

SUPPLEMENTARY INFORMATION:

I. Background

The air quality planning requirements for nonattainment new source

review are set out in part D of Title I of the CAA, as amended in 1990.

The EPA has issued a ``General Preamble'' describing the EPA's

preliminary views on how the 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 the 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 proposal and the

supporting rationale. The EPA is currently developing a proposed rule

to implement the changes under the 1990 Amendments in the NSR

provisions in parts C and D of Title I of the Act. The EPA anticipates

that the proposed rule will be published for public comment in 1995. If

the EPA has not taken final action on States' NSR submittals by that

time, the EPA will refer to the proposed rule as the most authoritative

guidance available regarding the approvability of the submittals. The

EPA expects to take final action to promulgate a final rule to

implement the parts C and D changes sometime during 1996. Upon

promulgation of those regulations, the EPA will review those NSR SIP

submittals, on which it has taken final action, to determine whether

additional SIP revisions are necessary.

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, ``New Source Review

(NSR) Program Transitional Guidance'', and September 3, 1992, ``New

Source Review (NSR) Program Supplemental Transitional Guidance on

Applicability of New Part D NSR Permit Requirements''.

As explained in the memorandum of March 11, 1991, the 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 permit consistent with requirements in

their current NSR SIPs during that period, or apply 40 CFR part 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 requirements or

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,

[[Page 52353]]

assuming certain conditions in the September 3 memorandum are met.

However, for applications completed after the SIP submittal deadline,

the 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 Act. The EPA believes this

guidance continues to apply to permitting pending final action on NSR

SIP submittals.

II. Proposed Rulemaking Action

A. Procedural Background

The Act requires States to observe certain procedural requirements

in developing implementation plans and plan revisions for submission to

the EPA. Section 110(a)(2) of the Act, 42 U.S.C. 7410(a)(2), 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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After adequate public notice, the State of Louisiana held a public

hearing, on December 30, 1992, to entertain public comment on the NSR

implementation plan, which replaced the emergency rules submitted to

the EPA on November 10, 1992. Following the public hearing, the plan

was adopted by the State on February 20, 1993, and submitted to the EPA

on March 3, 1993, as a proposed revision to the SIP. The State

submitted, to the EPA, revisions for the Louisiana SIP to implement the

NSR requirements of the CAA in nonattainment areas in Louisiana.

Louisiana made the SIP revision to LAC Title 33, Part III, Chapter 5.

Permit Procedures, by the addition of section 504. Nonattainment New

Source Review Procedures. The SIP revision was reviewed by the EPA to

determine administrative completeness shortly after its submittal. The

completeness review was based upon the criteria as set out at 40 CFR

part 51 Appendix V. The submittal was found to be complete on July 10,

1993; and a letter dated August 3, 1993, was forwarded to the Governor

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

taken in the review process. Prior to the EPA acting on these

revisions, the State submitted a notice of adoption and final rule on

Regulation LAC 33:III.Chapter 5, which included and amended section

504, on November 15, 1993, in order to meet the requirements mandated

by sections 173 and 182 of the Act. This proposed rule applies to, and

contains an evaluation of, section 504.

In this action, the EPA proposes approval of the Louisiana

nonattainment NSR SIP rules identified in this notice, and invites

public comment on the action. Those sections submitted to the EPA not

included in the revisions specifically addressed in this proposal will

be the subject of a future rulemaking. In this rulemaking action on the

Louisiana nonattainment NSR SIP, the EPA is proposing to apply its

interpretations, taking into consideration the specific factual issues

presented. Thus, the EPA will consider any timely submitted comments

prior to the EPA's taking final action on this proposed rule.

B. General Nonattainment NSR Requirements

The statutory requirements for nonattainment NSR SIPs and

permitting are found at sections 172 and 173.

The Act requires all States to have submitted, at a minimum, the

following nonattainment NSR provisions by November 15, 1992:

1. Provisions to assure that calculation of emissions offsets, as

required by section 173(a)(1)(A), are based on the same emissions

baseline used in the demonstration of reasonable further progress.

Louisiana has established provisions to satisfy this section pursuant

to sections 504.F.4 and 504.F.5.

2. Provisions to allow, according to section 173(c)(1), offsets to

be obtained in another nonattainment area 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

Standards (NAAQS) violation, in the area in which the source would

construct. Louisiana has established provisions to satisfy this

section, pursuant to section 504.F.9.

3. Provisions to assure, according to section 173(c)(1), 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 is to commence operation.

Louisiana has established provisions to satisfy this section pursuant

to section 504.F.3.

4. Provisions to assure that emissions increases, from new or

modified major stationary sources, are offset by real reductions in

actual emissions, as required by section 173(c)(1). Louisiana has

established provisions to satisfy this section pursuant to sections

504.D.3 and 504.F.7.

5. Provisions, according to section 173(c)(2), to prevent emissions

reductions, otherwise required by the Act, from being credited for

purposes of satisfying the part D offset requirements. Louisiana has

established provisions to satisfy this section pursuant to sections

504.F.5. and 504.F.10.

6. Provisions, according to section 173(a)(5), that, as a

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

alternative sites, sizes, production processes, and environmental

control techniques for proposed sources that 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. Louisiana has established provisions to

satisfy this section pursuant to section 504.D.6.

7. Provisions, according to section 173(e), that 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, if four conditions are met: (a) the

proposed modification is for expansion of a facility already permitted

for such purposes; (b) the source has used all available offsets and

all reasonable means to obtain offsets and sufficient offsets are not

available; (c) the source has obtained a written finding by the

appropriate, sponsoring Federal agency that the testing is essential to

national security; and (d) the source will comply with an alternative

measure designed to offset any emissions increases not directly offset

by the source.

In lieu of imposing any alternative offset measures, the permitting

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

times the average cost of stationary control measures adopted in that

area during the previous three years. Louisiana has established

provisions to satisfy this section pursuant to section 504.D.7.

8. Provisions, according to section 173(a)(3), to assure that

owners or operators, of each proposed new or modified major stationary

source, demonstrate that all other major stationary sources, under the

same ownership in the State, are in compliance with the Act. Louisiana

has established provisions to satisfy this section pursuant to section

504.D.1.

9. Provisions, according to section 173(a)(2), to assure that

permits for new and modified major stationary sources to construct and

operate may be issued

[[Page 52354]]

if the proposed source is required to comply with the lowest achievable

emission rate. Louisiana has established provisions to satisfy this

requirement pursuant to section 504.D.2.

10. Additionally, the State must assure that no interpollutant

trading is allowed as defined in 40 CFR part 51, Appendix S, section

IV, condition 3. Louisiana has established provisions to satisfy this

requirement pursuant to section 504.F.1.

11. The public notice and participation requirements, previously

located in Section 504, have now been placed in LAC 33:III. Chapter 5.

Section 531, which will be acted on by the EPA in a future rulemaking

action. These requirements were located in the March 3, 1993, submittal

and were subsequently moved in the November 15, 1993, submittal to

Section 531. Public participation requirements have previously been

approved in the SIP.

C. Ozone

The general nonattainment NSR requirements are found in sections

172 and 173 of the Act and must be met by all nonattainment areas.

Requirements for ozone that supplement or supersede these requirements

are found in subpart 2 of part D. In addition, subpart 2 includes

section 182(f), which states that requirements, for major stationary

sources of volatile organic compounds (VOC), shall apply to major

stationary sources of oxides of nitrogen (NOX) unless the

Administrator makes certain determinations related to the benefits or

contribution of NOX control to air quality, ozone attainment, or

ozone air quality. States were required under section 182(a)(2)(C) to

adopt new NSR rules for ozone nonattainment areas by November 15, 1992.

1. Marginal Ozone Nonattainment Areas

For marginal ozone nonattainment areas, States must submit the

following NSR provisions:

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 threshold for determination of whether a source is

subject to part D NSR requirements as a major source.

b. Provisions to ensure that new or modified major stationary

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

1.1 to 1 in order to obtain an NSR permit.

2. Moderate Ozone Nonattainment Areas

For moderate ozone nonattainment areas, States must submit the

following NSR provisions:

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

the section 302(j) 100 tpy VOC and, presumptively, the 100 tpy NOx

threshold for determination of whether a source is subject to part D

NSR requirements as a major source.

b. Provisions to ensure that new or modified major stationary

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

1.15 to 1 in order to obtain an NSR permit.

3. Serious Ozone Nonattainment Areas

For serious ozone nonattainment areas, States must submit the

following NSR provisions:

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

the section 182(c) 50 tpy VOC and, presumptively, the 50 tpy NOX

threshold for determination of whether a source is subject to part D

requirements as a major source.

b. Provisions to ensure that new or modified major stationary

sources obtain offsets under section 182(c)(10) at a ratio of at least

1.2 to 1 in order to obtain an NSR permit.

c. Provisions to implement section 182(c)(6) of the Act such that

any proposed emissions increase is subject to the 25-ton de minimis

test over a five year period.

4. Severe Ozone Nonattainment Areas

For severe ozone nonattainment areas, States must submit the

following NSR provisions:

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

the section 182(d) 25 tpy VOC and, presumptively, the 25 tpy NOX

threshold for determination of whether a source is subject to part D

requirements as a major source.

b. Provisions to ensure that new or modified major stationary

sources obtain offsets at a ratio [under section 182(d)(2)] of at least

1.3 to 1 in order to obtain an NSR permit, unless the SIP requires all

existing major sources in the nonattainment area to use Best Available

Control Technology, in which case, the offset ratio is at least 1.2 to

1.

c. Provisions to implement section 182(c)(6) of the Act such that

any proposed emissions increase is subject to the 25-ton de minimis

test over a five year period.

Louisiana has established major source thresholds and offset ratios

for VOC and included provisions for NOX major stationary sources

as follows:

------------------------------------------------------------------------

Area Major source Offset ratio

classification threshold minimum NOX provisions

------------------------------------------------------------------------

Marginal......... 100 tpy.......... 1.10 to 1....... See paragraph

below.

Moderate......... 100 tpy.......... 1.15 to 1....... Identical to

VOC.

Serious.......... 50 tpy........... 1.20 to 1....... Identical to

VOC, see

paragraph

below.

Severe........... 25 tpy........... 1.30 to 1....... Identical to

VOC.

Extreme.......... Not applicable... Not applicable.. Not applicable.

------------------------------------------------------------------------

The EPA is currently evaluating a petition for exemption from

NOX requirements pursuant to section 182(f), received on October

28, 1994, from the State of Louisiana. The petition regarding the

NOX offset requirement for the marginal ozone nonattainment area

of Calcasieu Parish, Louisiana, will be the subject of future EPA

action. If this petition is approved, the EPA intends to publish final

approval of the NSR SIP. If the petition is not approved, the EPA will

readdress the NSR SIP to require NOX offsets in the marginal ozone

nonattainment areas of Louisiana.

The EPA has proposed approval of a petition for exemption from

NOX requirements pursuant to section 182(f), received from the

State of Louisiana on November 17, 1994, for the serious ozone

nonattainment area of Baton Rouge, and has proposed its approval on

August 18, 1995 (see 60 FR 43100). If approved, NOX offsets will

not be required in that area.

Louisiana has established all of the above requirements for all

other ozone nonattainment areas.

Additionally, for nonclassifiable (transitional or incomplete data)

ozone nonattainment areas, State rules for the marginal area

classification apply. For further information on nonclassifiable areas

see, ``General Preamble'' 57 Federal Register 55624 (April 16, 1992),

and the ``NOX supplement to the General Preamble'' 57 FR 13523

(November 25, 1993).

[[Page 52355]]

In addition, Louisiana's plan submittal reflects appropriate

modification provisions, including a de minimis level of 25 tons.

D. Carbon Monoxide (CO)

The general part D NSR permit requirements apply in CO

nonattainment areas, and are supplemented by the CO requirements in

subpart 3 of part D.

1. All moderate CO nonattainment areas, with a design value of 12.7

parts per million or less, must submit proposed part D NSR programs no

later than November 15, 1993. Such programs must have the following

provisions:

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

the section 302(j) 100 tpy CO threshold for determination of whether a

source is subject to part D requirements as a major source.

b. Provisions to ensure that new or modified major stationary

sources obtain offsets under section 173(a)(1)(A) at a ratio of at

least 1 to 1 in order to obtain an NSR permit.

2. All States, with moderate CO nonattainment areas with a design

value greater than 12.7 ppm, were required to submit proposed part D

NSR programs by November 15, 1992. Such programs must have the

following provisions:

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

the 100 tpy CO threshold for determination of whether a source is

subject to part D requirements as a major source.

b. Provisions to ensure that new or modified major stationary

sources obtain offsets at a ratio of at least 1 to 1 in order to obtain

an NSR permit.

3. Pursuant to section 187(c)(1), 42 U.S.C. 7512a(c)(1), all States

with serious CO nonattainment areas, in which stationary sources

contribute significantly to CO levels (as determined under rules issued

by the Administrator; i.e., according to guidance issued in a May 13,

1991, memorandum ``Guidance for Determining Significant Stationary

Sources for Carbon Monoxide'' from William Laxton, Director, Technical

Support Division to Regional Air Division Directors) were required to

submit part D NSR programs by November 15, 1992. Such programs must

have the following provisions:

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

the 50 tpy CO threshold for determination of whether a source is

subject to part D requirements as a major source.

b. Provisions under section 173(a)(1)(A) to ensure that new or

modified major stationary sources obtain offsets at a ratio of at least

1 to 1 in order to obtain an NSR permit.

4. All States with nonclassifiable CO nonattainment areas must

submit revised part D programs by November 15, 1993.

Louisiana has established a major source threshold of 100 tpy, and

a minimum offset ratio of greater than 1.00 to 1 for moderate CO

nonattainment areas. Louisiana has established a major source threshold

of 50 tpy, and a minimum offset ratio of greater than 1.00 to 1 for

serious nonattainment areas.

Louisiana has no areas designated as nonattainment for CO at this

time.

E. Particulate Matter Less Than 10 Micrometers In Diameter (PM-10)

Pursuant to section 189(a)(2) 42 U.S.C. 7513a(a)(2), all States,

with a PM-10 nonattainment area classified as moderate, were required

to submit an NSR permit program SIP revision by June 30, 1992, or 18

months after the designation of such an area.

1. Moderate Areas

PM-10 NSR programs must have the following provisions:

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

thresholds in section 302(j) of 100 tpy for PM-10 and, presumptively,

100 tpy for each PM-10 precursor for determination of whether a source

is subject to part D requirements as a major source.

b. Provisions under section 173(a)(1)(A) to ensure that new or

modified major stationary sources obtain emission offsets at an offset

ratio of at least 1 to 1.

c. Under section 189(e), requirements applicable to major sources

of PM-10 are also applicable to major sources of PM-10 precursors,

except where the Administrator determines that such sources do not

contribute significantly to PM-10 levels which exceed the standards in

the area. The EPA generally considers sulfur dioxide, nitrogen oxides,

or volatile organic compounds to be PM-10 precursors for NSR purposes

in certain areas. Further guidance on making such determinations has

been issued at 57 Federal Register 13541 (April 16, 1992) and 57

Federal Register 18070 (April 28, 1992).

d. Provisions to ensure that the significance threshold for a

modification to be major, and therefore subject to the section 173

permit requirements, is 15 tpy for PM-10 and, presumptively, 15 tpy for

each PM-10 precursor.

2. Serious Areas

PM-10 NSR programs must have the following provisions:

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

the section 189(b)(3) thresholds of 70 tpy for PM-10 and 70 tpy for

each PM-10 precursor (in certain cases) for determination of whether a

source is subject to part D requirements as a major source.

b. Provisions under section 173(a)(1)(A) to ensure that new or

modified major stationary sources obtain an offset ratio of at least 1

to 1.

c. Under section 189(e), requirements applicable to major sources

of PM-10 are also applicable to major sources of PM-10 precursors,

except where the Administrator determines that such sources do not

contribute significantly to PM-10 levels which exceed the standards in

the area.

d. Provisions to ensure that the significance threshold for a

modification to be major, and therefore subject to the section 173

permit requirements, is 15 tpy for PM-10 and, presumptively 15 tpy for

each PM-10 precursor.

Louisiana has established major source thresholds, offset ratios,

modification significance levels, and PM-10 precursor provisions as

follows:

----------------------------------------------------------------------------------------------------------------

Major source

Area classification threshold Offset ratio minimum Significance level Precursor provisions

----------------------------------------------------------------------------------------------------------------

Moderate............. 100 tpy.............. Greater than 1 to 1.. 15 tpy............... See paragraph below.

Serious.............. 50 tpy............... Greater than 1 to 1.. 15 tpy............... See paragraph below.

----------------------------------------------------------------------------------------------------------------

Since Louisiana has no areas designated as nonattainment for PM-10

at this time, the EPA is proposing to approve the PM-10 NSR provisions

for the limited purpose of strengthening the SIP and not for satisfying

the part D NSR requirements for PM-10. If an area is designated

nonattainment for PM-10, then the State would be required to submit

provisions for PM-10 precursors unless it has sought and obtained a

determination by the EPA under section 189(e).

[[Page 52356]]

F. Sulfur Dioxide (SO2)

States with SO2 nonattainment areas were required to submit

NSR implementation plans by May 15, 1992. States with areas that are

designated or redesignated as nonattainment after the Amendments have

18 months to submit such plans. NSR implementation plans must contain

the following provisions with regard to SO2:

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

the section 302(j) 100 tpy SO2 threshold for determination of

whether a source is subject to part D requirements as a major source.

2. Provisions under section 173(a)(1)(A) to ensure that new or

modified major stationary sources obtain SO2 offsets at a ratio of

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

3. Provisions to ensure that the significance threshold for a

modification to be major, and therefore subject to the section 173

permit requirements, is 40 tpy of SO2.

Louisiana has established a major source threshold of 100 tpy, a

minimum offset ratio of greater than 1 to 1, and a modification

significance level of 40 tpy.

Louisiana has no areas designated as nonattainment for SO2 at

this time.

G. Lead

Generally, the date, by which a plan must be submitted for an area,

is triggered by the area's nonattainment designation. For areas

designated nonattainment for the primary lead NAAQS in effect at

enactment of the 1990 Amendments; under section 171(b), States must

submit SIPs which meet the applicable requirements of part D within 18

months of the date of enactment of the 1990 Amendments. States with

lead nonattainment areas are required to submit NSR implementation

plans which must contain the following provisions:

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

the section 302(j) 100 tpy lead threshold for determination of whether

a source is subject to part D requirements as a major source.

2. Provisions under section 173(a)(1)(A) to ensure that new or

modified major stationary sources of lead obtain lead offsets at a

ratio of at least 1 to 1 in order to obtain an NSR permit.

3. Provisions to ensure that the significance threshold for a

modification to be major, and therefore subject to the section 173

permit requirements, is 0.6 tpy of lead.

Louisiana has established a major source threshold of 100 tpy, a

minimum offset ratio of greater than 1 to 1, and a modification

significance level of 0.6 tpy.

Louisiana has no areas designated as nonattainment for Lead at this

time.

III. Implications of this Action

The EPA is proposing approval of the plan revisions submitted on

March 3, 1993, as amended on November 15, 1993, regarding NSR, subject

to EPA approval of the NOX exemption request for the Calcasieu

Parish ozone nonattainment area. The State of Louisiana has submitted a

complete plan to implement the NSR provisions of part D. Assuming

approval of the NOX exemption request, each of the program

elements mentioned above were properly addressed, with the exception of

PM-10 precursor requirements. Since Louisiana has no areas designated

as nonattainment for PM-10 at this time, the EPA is proposing to

approve the PM-10 NSR provisions for the limited purpose of

strengthening the SIP and not for satisfying the part D NSR

requirements for PM-10. If an area is designated nonattainment for PM-

10, then the State would be required to submit provisions for PM-10

precursors unless it has sought and obtained a determination by the EPA

under section 189(e).

Those sections submitted to the EPA, not included in the revisions

specifically addressed in this proposal, will be the subject of a

future rulemaking. If the EPA does not approve the NOX exemption

request for Calcasieu Parish, there will not be final approval of the

NSR SIP until rule changes requiring NOX offsets in marginal areas

are submitted by the State.

Louisiana LAC 33:III.Chapter 5.section 504 is approvable under the

requirements for nonattainment area permitting regulations as outlined

in 40 CFR part 51 and in part D. These revisions incorporate

requirements of the CAA for the construction and operation of new and

modified major stationary sources of air pollutants. However, the EPA

is currently in the process of revising its regulations, in accordance

with the CAA, and expects to propose an amended 40 CFR 51.165 within

the near future. These revisions to 40 CFR 51.165 will reflect the new

nonattainment NSR provisions added by the CAA in part D, subparts 1 and

2. Once the EPA promulgates final nonattainment NSR rules pursuant to

the CAA, the State of Louisiana will have to review LAC 33:III.Chapter

5.section 504 against the requirements found in the final promulgated

regulations and submit any additionally required revisions to the EPA

for approval.

IV. Request for Public Comments

The EPA is requesting comments on all aspects of the requested SIP

revision and the EPA's proposed rulemaking action. Comments received by

date indicated above will be considered in the development of the EPA's

final rule.

V. Executive Order (EO) 12866

This action has been classified as a Table 3 action for signature

by the Regional Administrator under the procedures published in the

Federal Register on January 19, 1989 (54 FR 2214-2225), as revised by a

July 10, 1995, memorandum from Mary Nichols, Assistant Administrator

for Air and Radiation. The Office of Management and Budget has exempted

this regulatory action from EO 12866 review.

VI. Regulatory Flexibility

Under the Regulatory Flexibility Act, 5 U.S.C. 600 et seq., the 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, the EPA may certify that the rule will not have a

significant 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

CAA, 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 CAA, preparation of a regulatory flexibility analysis would

constitute Federal inquiry into the economic reasonableness of State

action. The CAA forbids the 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

(1976); 42 U.S.C. 7410(a)(2)).

Under section 307(b)(1) of the CAA, petitions for judicial review

of this action must be filed in the United States Court of Appeals, for

the appropriate circuit, by December 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

[[Page 52357]]

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).

VII. Unfunded Mandates

Under section 202 of the Unfunded Mandates Reform Act of 1995

(``Unfunded Mandates Act''), signed into law on March 22, 1995, the EPA

must prepare a budgetary impact statement to accompany any proposed or

final rule that includes a Federal mandate that may result in estimated

costs to State, local, or tribal governments in the aggregate; or to

the private sector, of $100 million or more. Under section 205, the EPA

must select the most cost-effective and least burdensome alternative

that achieves the objectives of the rule and is consistent with

statutory requirements. Section 203 requires the EPA to establish a

plan for informing and advising any small governments that may be

significantly or uniquely impacted by the rule.

The EPA has determined that this proposed action does not include a

Federal mandate that may result in estimated costs of $100 million or

more to either State, local, or tribal governments in the aggregate, or

to the private sector. This Federal action approves pre-existing

requirements under State or local law, and imposes no new Federal

requirements. Accordingly, no additional costs to State, local, or

tribal governments, or to the private sector, result from this action.

List of Subjects in 40 CFR Part 52

Environmental protection, Air pollution control, Carbon monoxide,

Hydrocarbons, Incorporation by reference, Intergovernmental relations,

Lead, New source review, Nitrogen dioxide, Ozone, Particulate matter,

Reporting and recordkeeping requirements, Sulfur dioxide, Volatile

organic compounds.

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

Dated: September 29, 1995.

Samuel Coleman,

Acting Regional Administrator (6RA).

[FR Doc. 95-24940 Filed 10-5-95; 8:45 am]

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