[Federal Register: August 21, 2008 (Volume 73, Number 163)]
[Proposed Rules]
[Page 49373-49377]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21au08-20]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R03-OAR-2007-0382, EPA-R03-OAR-2008-0113; FRL-8707-4]
Approval and Promulgation of Air Quality Implementation Plans;
Virginia; Emission Reductions From Large Stationary Internal Combustion
Engines and Large Cement Kilns
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: EPA is proposing to approve State Implementation Plan (SIP)
revisions for the Commonwealth of Virginia. These revisions, submitted
by the Virginia Department of
[[Page 49374]]
Environmental Quality (VADEQ), pertain to nitrogen oxides
(NOX) emission reductions from large stationary internal
combustion (IC) engines and large cement kilns from five sources
located in the Commonwealth. The reductions allow Virginia to meet its
remaining obligations under the NOX SIP Call. This action is
being taken under the Clean Air Act (CAA).
DATES: Written comments must be received on or before September 22,
2008.
ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R03-OAR-2007-0382 and EPA-R03-OAR-2008-0113 by one of the following
methods:
A. www.regulations.gov. Follow the on-line instructions for
submitting comments.
B. E-mail: Fernandez.Cristina@epa.gov.
C. Mail: EPA-R03-OAR-2007-0382 and/or EPA-R03-OAR-2008-0113,
Cristina Fernandez, Chief, Air Quality Planning Branch, Mailcode 3AP21,
U.S. Environmental Protection Agency, Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
D. Hand Delivery: At the previously listed EPA Region III address.
Such deliveries are only accepted during the Docket's normal hours of
operation, and special arrangements should be made for deliveries of
boxed information.
Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-
2007-0382 and/or EPA-R03-OAR-2008-0113. EPA's policy is that all
comments received will be included in the public docket without change,
and may be made available online at www.regulations.gov, including any
personal information provided, unless the comment includes information
claimed to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Do not submit
information that you consider to be CBI or otherwise protected through
www.regulations.gov or e-mail. The www.regulations.gov Web site is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through www.regulations.gov, your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
Docket: All documents in the electronic docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., 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 either electronically in www.regulations.gov or
in hard copy during normal business hours at the Air Protection
Division, U.S. Environmental Protection Agency, Region III, 1650 Arch
Street, Philadelphia, Pennsylvania 19103. Copies of the State submittal
are available at the Virginia Department of Environmental Quality, 629
East Main Street, Richmond, Virginia 23219.
FOR FURTHER INFORMATION CONTACT: Marilyn Powers, (215) 814-2308, or by
e-mail at powers.marilyn@epa.gov.
SUPPLEMENTARY INFORMATION: The Virginia Department of Environmental
Quality submitted four separate SIP revisions to meet the
NOX SIP Call requirement to address large stationary IC
engines. These submissions were made on February 26, 2007 for
Transcontinental Gas Pipeline (Transco) Station 165; March 5, 2007 for
Transco Station 170; March 12, 2007 for Transco Station 175; and March
19, 2007 for Transco Station 180. On August 8, 2007, VADEQ submitted a
SIP revision to meet the NOX SIP Call requirement to address
NOX emissions from cement manufacturing in the Commonwealth.
I. Background
EPA issued the NOX SIP Call (63 FR 57356, October 27,
1998) to require 22 Eastern states and the District of Columbia to
reduce specified amounts of one of the main precursors of ground-level
ozone, NOX, in order to reduce interstate ozone transport.
EPA found that the sources in these states emit NOX in
amounts that contribute significantly to nonattainment of the 1-hour
ozone national ambient air quality standard (NAAQS) in downwind states.
In the NOX SIP Call, the amount of reductions required by
states were calculated based on application of available, highly cost-
effective controls on certain source categories of NOX.
These source categories included large fossil fuel-fired electric
generating units (EGUs) serving a generator with a capacity greater
than 25 MWe, fossil fuel-fired non-EGUs (such as large industrial
boilers with a capacity greater than 250 MMBtu/hr), large stationary
internal combustion engines, and large cement kilns. EPA established a
model trading rule for large EGUs and non-EGUs that States could adopt
to participate in the EPA-administered NOX Budget Trading
program.
The NOX SIP Call, including the Technical Amendments
which addressed the 2007 EGU budgets (64 FR 26298, May 14, 1999 and 65
FR 11222, March 2, 2000), was challenged by a number of state,
industry, and labor groups. A summary of the NOX SIP Call
requirements, including details of the court decisions that were made
in response to challenges to the rule and impacts of the court
decisions on certain aspects of the rule may be found in EPA's
rulemaking dated April 21, 2004 (69 FR 21604) entitled, ``Interstate
Ozone Transport: Response to Court Decisions on the NOX SIP
Call, NOX SIP Call Technical Amendments, and Section 126
Rules.'' The relevant portions of the April 21, 2004 rulemaking that
affect Virginia's obligations under the NOX SIP Call, and
that pertain to the Commonwealth's requirements for Phase II, are
discussed in this document to provide background on the SIP revisions
for Phase II that were submitted by VADEQ.
On March 3, 2000, the United States Court of Appeals for the
District of Columbia Circuit (DC Circuit) issued its decision on the
NOX SIP Call. Michigan v. EPA, 213 F.3rd 663 (DC Dir. 2000).
While the DC Circuit ruled largely in favor of EPA in support of its
requirements under the 1-hour ozone NAAQS, it also ruled, in part,
against EPA on certain issues. The rulings against EPA included two
areas of the NOX SIP Call that were remanded and vacated,
and two areas in which EPA was found to have failed to provide adequate
notice of changes in the rule. In the latter case, the rulings included
a failure to provide adequate notice of the change in the definition of
EGU as applied to cogeneration units that supply electricity to a
utility power distribution system for sale in certain specified
amounts, and a failure to provide adequate notice of the change in the
control level EPA assumed for large stationary internal combustion (IC)
engines. The portions of the NOX SIP Call that were upheld
by the Court were termed ``Phase I'' of the rule. With the exception of
the remand of the EGU
[[Page 49375]]
growth factors used in the NOX SIP Call and the requirements
for the 8-hour ozone NAAQS (which EPA stayed due to uncertainty created
by the court rulings), those portions of the NOX SIP Call
that had been remanded back to EPA were finalized in the April 21, 2004
rulemaking (69 FR 21604) and termed ``Phase II'' of the rule.
The April 21, 2004 rule finalized specific changes to the
definition of EGUs as applied to cogeneration units, finalized the
control levels assumed for large stationary IC engines in the
NOX SIP Call, adjusted States' total budgets (as necessary)
to reflect these changes, established a SIP submittal date of April 1,
2005 for states to address the Phase II portion of the budget, and set
a compliance date of May 1, 2007 for all affected sources to meet Phase
II. As a result of these changes, states that were not already meeting
their total NOX SIP Call emission reduction obligations were
required to submit a SIP revision by April 1, 2005 to reduce ozone
season NOX emissions by an incremental amount equivalent to
the reductions achieved by controlling IC engines to prescribed levels.
The IC engines that comprise the subject States' Phase II inventory
were compiled by EPA and termed the EPA's NOX SIP Call
Engine Inventory (65 FR 1222, March 2, 2000). As finalized in the April
21, 2005 rulemaking, the amount of the incremental reductions required
was based upon the level of reductions that would occur if large
natural gas-fired stationary IC engines were controlled to a level of
82 percent, and large diesel and dual fuel stationary IC engines were
controlled to a level of 90 percent.
The change to the definition of cogeneration units did not have an
impact on the Phase I budget previously established for Virginia.
Therefore, in order to meet its Phase II obligations, the State was
required only to achieve the incremental reductions that EPA calculated
based on controlling stationary IC engines to prescribed levels. As in
Phase I of the NOX SIP Call, states have flexibility in how
they achieve the incremental reductions required under Phase II.
In the NOX SIP Call Engine Inventory, EPA identified 17
lean burn engines in Virginia that met the definition of large, natural
gas-fired IC engines. EPA determined a reduction target of 3343 tons of
NOX based on a reduction level of 82 percent. In the
NOX SIP Call inventory, EPA identified five large cement
kilns and determined a reduction target of 173 tons of NOX
based on a control level of 30 percent for this source category.
Virginia's Phase I NOX SIP Call trading program was
approved as part of the Virginia SIP on November 12, 2002 (67 FR
68544), with the exception of its flow control provision, which was
conditionally approved. The conditional approval was converted to a
full approval on August 25, 2004 (69 FR 52174). The Phase II change to
the definition of cogen units did not affect the Phase I budget
previously established for Virginia and will not be discussed in any
detail here, but a full discussion may be found in the April 21, 2005
rulemaking. In order to meet its NOX SIP Call Phase II
obligations, the Commonwealth is required only to achieve the
incremental reductions that EPA calculated based on a controlling large
IC engines to prescribed levels.
In the November 12, 2002 approval, it was noted that the SIP
revision did not establish requirements for cement manufacturing kilns
and stationary internal combustion engines, and that Virginia was still
obligated to submit SIP revisions for additional reductions required to
meet the State's overall emissions budget.
II. Summary of SIP Revisions
The table below identifies the sources and the individual state
operating permits that are the subject of this rulemaking, followed by
a summary of the SIP revisions for each source category. The Technical
Support Document (TSD) for this rulemaking contains additional details
pertaining to EPA's analysis of the State submittals.
Large IC Engines and Cement Kilns Subject to the NOX SIP Call in Virginia
----------------------------------------------------------------------------------------------------------------
Permit/order or
Source name Location registration No. Source type
----------------------------------------------------------------------------------------------------------------
Transcontinental Gas Pipeline Corp. Pittsylvania County.... Registration No. 30864. Large natural gas-fired
Station 165. internal combustion
engine.
Transcontinental Gas Pipeline Corp. Appomattox County...... Registration No. 30863. Large natural gas-fired
Station 170. internal combustion
engine.
Transcontinental Gas Pipeline Corp. Fluvanna County........ Registration No. 40789. Large natural gas-fired
Station 175. internal combustion
engine.
Transcontinental Gas Pipeline Corp. Orange County.......... Registration No. 40782. Large natural gas-fired
Station 180. internal combustion
engine.
Roanoke Cement Corporation........... Botetourt County....... Registration No. 20232. Cement manufacturing.
----------------------------------------------------------------------------------------------------------------
A. Large Stationary IC Engines
VADEQ determined that one company, Transco, owns all of the
potentially affected sources in the State, and chose to impose 3343
tons of NOX emission reductions from 19 engines located at
four stations. VADEQ issued federally enforceable State operating
permits for these Transco stations. The operating permit requirements
for the engines include NOX emission rate limits and limits
on hours of operation during the ozone season to achieve the required
emission reductions. The permits also include provisions for testing,
parametric monitoring, reporting, and recordkeeping to ensure the terms
of the permits are met.
B. Cement Manufacturing
Four long, dry cement kilns that were included as part of the 1995
NOX SIP Call inventory were permanently shut down in 1996.
The remaining preheater kiln was reconfigured and upgraded as a
precalciner kiln to handle the capacity of the facility. VADEQ
submitted a demonstration that the emissions from the reconfigured
preheater/precalciner kiln in 2005 has resulted in at least a 30
percent reduction from the four long, dry kilns and one preheater kiln
that existed in 1995. The demonstration shows that the kiln is
maximizing fuel efficiency while minimizing NOX emissions,
consistent with EPA's ``Alternative Control Techniques Document--
NOX emissions from Cement Manufacturing'' (EPA-453/R94-004).
The demonstration also shows that the overall emission rate change from
1995 to 2005 is well over 30 percent. In addition, low NOX
burners were installed on the kiln in 2006. VADEQ issued a State
Operating Permit for the low NOX burners on December 22,
2004, and on June 18, 2007 modified the operating permit to indicate
that the preheater/precalciner configuration
[[Page 49376]]
with low NOX burners implements the requirements of the
NOX SIP Call.
III. General Information Pertaining to SIP Submittals From the
Commonwealth of Virgina
In 1995, Virginia adopted legislation that provides, subject to
certain conditions, for an environmental assessment (audit)
``privilege'' for voluntary compliance evaluations performed by a
regulated entity. The legislation further addresses the relative burden
of proof for parties either asserting the privilege or seeking
disclosure of documents for which the privilege is claimed. Virginia's
legislation also provides, subject to certain conditions, for a penalty
waiver for violations of environmental laws when a regulated entity
discovers such violations pursuant to a voluntary compliance evaluation
and voluntarily discloses such violations to the Commonwealth and takes
prompt and appropriate measures to remedy the violations. Virginia's
Voluntary Environmental Assessment Privilege Law, Va. Code Sec. 10.1-
1198, provides a privilege that protects from disclosure documents and
information about the content of those documents that are the product
of a voluntary environmental assessment. The Privilege Law does not
extend to documents or information (1) that are generated or developed
before the commencement of a voluntary environmental assessment; (2)
that are prepared independently of the assessment process; (3) that
demonstrate a clear, imminent and substantial danger to the public
health or environment; or (4) that are required by law.
On January 12, 1998, the Commonwealth of Virginia Office of the
Attorney General provided a legal opinion that states that the
Privilege law, Va. Code Sec. 10.1-1198, precludes granting a privilege
to documents and information ``required by law,'' including documents
and information ``required by Federal law to maintain program
delegation, authorization or approval,'' since Virginia must ``enforce
Federally authorized environmental programs in a manner that is no less
stringent than their Federal counterparts. * * *'' The opinion
concludes that ``[r]egarding Sec. 10.1-1198, therefore, documents or
other information needed for civil or criminal enforcement under one of
these programs could not be privileged because such documents and
information are essential to pursuing enforcement in a manner required
by Federal law to maintain program delegation, authorization or
approval.''
Virginia's Immunity law, Va. Code Sec. 10.1-1199, provides that
``[t]o the extent consistent with requirements imposed by Federal
law,'' any person making a voluntary disclosure of information to a
state agency regarding a violation of an environmental statute,
regulation, permit, or administrative order is granted immunity from
administrative or civil penalty. The Attorney General's January 12,
1998 opinion states that the quoted language renders this statute
inapplicable to enforcement of any Federally authorized programs, since
``no immunity could be afforded from administrative, civil, or criminal
penalties because granting such immunity would not be consistent with
Federal law, which is one of the criteria for immunity.''
Therefore, EPA has determined that Virginia's Privilege and
Immunity statutes will not preclude the Commonwealth from enforcing its
program consistent with the Federal requirements. In any event, because
EPA has also determined that a state audit privilege and immunity law
can affect only state enforcement and cannot have any impact on Federal
enforcement authorities, EPA may at any time invoke its authority under
the CAA, including, for example, sections 113, 167, 205, 211 or 213, to
enforce the requirements or prohibitions of the state plan,
independently of any state enforcement effort. In addition, citizen
enforcement under section 304 of the CAA is likewise unaffected by
this, or any, state audit privilege or immunity law.
IV. Proposed Action
EPA's review of the submittals indicates that the Commonwealth of
Virginia has met the additional emission reduction requirements to
comply with its overall emissions budget under the NOX SIP
Call. The SIP revisions address Virginia's remaining obligations under
the NOX SIP Call, therefore, EPA proposes to approve them
into the Virginia SIP. EPA is soliciting public comments on the issues
discussed in this document. These comments will be considered before
taking final action.
V. Statutory and Executive Order Reviews
Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this action merely proposes to approve state law as
meeting Federal requirements and does not impose additional
requirements beyond those imposed by state law. For that reason, this
proposed action:
Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the Clean Air Act; and
Does not provide EPA with the discretionary authority to
address, 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, this action proposing approval of Virginia's remaining
emission reductions under the NOX SIP Call does not have
tribal implications as specified by Executive Order 13175 (65 FR 67249,
November 9, 2000), because the SIP is not approved to apply in Indian
country located in the state, and EPA notes that it will not impose
substantial direct costs on tribal governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping
requirements.
Authority: 42 U.S.C. 7401 et seq.
[[Page 49377]]
Dated: August 14, 2008.
William T. Wisniewski,
Acting Regional Administrator, Region III.
[FR Doc. E8-19422 Filed 8-20-08; 8:45 am]
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