[Federal Register Volume 85, Number 194 (Tuesday, October 6, 2020)]
[Proposed Rules]
[Pages 63066-63077]
[FR Doc No: 2020-20099]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2020-0114; FRL-10014-26-Region 8]

Approval and Promulgation of Implementation Plans; Colorado;
Revisions to Regulation Number 7 and RACT Requirements for 2008 8-Hour
Ozone Standard for the Denver Metro/North Front Range Nonattainment
Area

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing
approval and conditional approval of State Implementation Plan (SIP)
revisions submitted by the State of Colorado on May 31, 2017, May 14,
2018, and May 10, 2019. The revisions are to Colorado Air Quality
Control Commission (Commission or AQCC) Regulation Number 7 (Reg. 7).
The revisions to Reg. 7 address Colorado's reasonably

available control technology (RACT) SIP obligations for Moderate 2008
ozone nonattainment areas; add incorporation by reference dates to
rules and reference methods; and make typographical, grammatical, and
formatting corrections. Also, in this action, the EPA is proposing to
correct a July 3, 2018 final rule pertaining to Colorado's SIP. In that
action, we inadvertently excluded regulatory text corresponding to
``incorporation by reference'' (IBR) materials for graphic arts and
printing revisions to Reg. 7, Section XIII (adopted November 17, 2016).
The EPA is taking this action pursuant to the Clean Air Act (CAA).

DATES: Written comments must be received on or before November 5, 2020.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R08-
OAR-2020-0114, to the Federal Rulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting
comments. Once submitted, comments cannot be edited or removed from
www.regulations.gov. The EPA may publish any comment received to its
public docket. Do not submit electronically any information you
consider to be Confidential Business Information (CBI) or other
information whose disclosure is restricted by statute. Multimedia
submissions (audio, video, etc.) must be accompanied by a written
comment. The written comment is considered the official comment and
should include discussion of all points you wish to make. The EPA will
generally not consider comments or comment contents located outside of
the primary submission (i.e., on the web, cloud, or other file sharing
system). For additional submission methods, the full EPA public comment
policy, information about CBI or multimedia submissions, and general
guidance on making effective comments, please visit http://www2.epa.gov/dockets/commenting-epa-dockets.
    Docket: All documents in the docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available electronically in
www.regulations.gov. To reduce the risk of COVID-19 transmission, for
this action we do not plan to offer hard copy review of the docket.
Please email or call the person listed in the FOR FURTHER INFORMATION
CONTACT section if you need to make alternative arrangements for access
to the docket.

FOR FURTHER INFORMATION CONTACT: Abby Fulton, Air and Radiation
Division, EPA, Region 8, Mailcode 8ARD-IO, 1595 Wynkoop Street, Denver,
Colorado 80202-1129, Telephone number:<PHONE_NUMBER>, email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: Throughout this document wherever ``we,''
``us,'' or ``our'' is used, we mean the EPA.

I. What action is the Agency taking?

    As explained below, the EPA is proposing to approve various
revisions to the Colorado SIP that were submitted to the EPA on May 31,
2017, May 14, 2018, and May 10, 2019. In particular, we propose to
approve certain area source rules to meet the 2008 8-hour ozone
national ambient air quality standards (NAAQS) RACT requirements for
Moderate nonattainment areas that were not acted on in our July 3, 2018
rulemaking approving the State's attainment demonstration and various
SIP elements.\1\ We are also proposing to approve into the SIP the
submitted revisions to Colorado's Reg. 7 that we have not previously
acted on, except for Sections XII and XVIII (from the May 2018
submittal) and Sections XVI.D.4.b.(i) and XVI.D.4.d. (from the two May
2019 submittals), which we will be acting on at a later date (see
Tables 4, 5 and 6). Finally, we propose to approve IBR material
submitted in May 2017 but inadvertently excluded from our July 3, 2018
action.
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    \1\ See Final Rule, Approval and Promulgation of State
Implementation Plan Revisions; Colorado; Attainment Demonstration
for the 2008 8-Hour Ozone Standard for the Denver Metro/North Front
Range Nonattainment Area, and Approval of Related Revisions, 83 FR
31068, 31069-31072.
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    The specific bases for our proposed actions and our analyses and
proposed findings are discussed in this proposed rulemaking. Technical
information that we are relying on is in the docket, available at
http://www.regulations.gov, Docket No. EPA-R08-OAR-2020-0114.

II. Background

2008 8-Hour Ozone NAAQS Nonattainment

    On March 12, 2008, the EPA revised both the primary and secondary
NAAQS for ozone to a level of 0.075 parts per million (ppm) (based on
the annual fourth-highest daily maximum 8-hour average concentration,
averaged over 3 years), to provide increased protection of public
health and the environment.\2\ The 2008 ozone NAAQS retains the same
general form and averaging time as the 0.08 ppm NAAQS set in 1997, but
is set at a more protective level. Specifically, the 2008 8-hour ozone
NAAQS is attained when the 3-year average of the annual fourth-highest
daily maximum 8-hour average ambient air quality ozone concentrations
is less than or equal to 0.075 ppm.\3\
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    \2\ Final rule, National Ambient Air Quality Standards for
Ozone, 73 FR 16436 (March 27, 2008).
    \3\ 40 CFR 50.15(b).
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    Effective July 20, 2012, the EPA designated as nonattainment any
area that was violating the 2008 8-hour ozone NAAQS based on the three
most recent years (2008-2010) of air monitoring data.\4\ With that
rulemaking, the Denver-Boulder-Greeley-Ft. Collins-Loveland, Colorado
area (Denver or DMNFR Area) area was designated nonattainment and
classified as Marginal.\5\ Ozone nonattainment areas are classified
based on the severity of their ozone levels, as determined using the
area's design value. The design value is the 3-year average of the
annual fourth highest daily maximum 8-hour average ozone concentration
at a monitoring site.\6\ Areas that were designated as Marginal
nonattainment were required to attain the 2008 8-hour ozone NAAQS no
later than July 20, 2015, based on 2012-2014 monitoring data.\7\
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    \4\ Final rule, Air Quality Designations for the 2008 Ozone
National Ambient Air Quality Standards, 77 FR 30088 (May 21, 2012).
    \5\ Id. at 30110. The nonattainment area includes Adams,
Arapahoe, Boulder, Broomfield, Denver, Douglas and Jefferson
Counties, and portions of Larimer and Weld Counties. See 40 CFR
81.306.
    \6\ 40 CFR part 50, appendix I.
    \7\ See 40 CFR 51.903.
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    On May 4, 2016, the EPA published its determination that the Denver
Area, among other areas, had failed to attain the 2008 8-hour ozone
NAAQS by the attainment deadline, and that it was accordingly
reclassified to Moderate ozone nonattainment status.\8\ Colorado
submitted SIP revisions to the EPA on May 31, 2017 to meet the Denver
Area's requirements under the Moderate classification.\9\ The EPA took
final action on July 3, 2018, approving the majority of the May 31,
2017 submittal,

but deferring action on portions of the submitted Reg. 7 RACT
rules.\10\
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    \8\ Final rule, Determinations of Attainment by the Attainment
Date, Extensions of the Attainment Date, and Reclassification of
Several Areas for the 2008 Ozone National Ambient Air Quality
Standards, 81 FR 26697 (May 4, 2016); see 40 CFR 81.306.
    \9\ CAA section 182, 42 U.S.C. 7511a, outlines SIP requirements
applicable to ozone nonattainment areas in each classification
category. Areas classified Moderate under the 2008 8-hour ozone
NAAQS had a submission deadline of January 1, 2017 for these SIP
revisions. 81 FR at 26699.
    \10\ 83 FR at 31068. Under the Moderate classification, the
Denver Area was required to attain the standard by July 20, 2018. It
did not do so, and as a result has been reclassified to Serious
nonattainment status. See Final rule, Finding of Failure To Attain
and Reclassification of Denver Area for the 2008 Ozone National
Ambient Air Quality Standard, 84 FR 70897 (Dec. 26, 2019).
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SIP Control Measures, Reg. 7

    Colorado's Reg. 7, entitled ``Control of Ozone via Ozone Precursors
and Control of Hydrocarbons via Oil and Gas Emissions,'' contains
general RACT requirements as well as specific emission limits
applicable to various industries. The EPA approved the repeal and re-
promulgation of Reg. 7 in 1981,\11\ and has approved various revisions
to parts of Reg. 7 over the years. In 2008, the EPA approved revisions
to the control requirements for condensate storage tanks in Section
XII,\12\ and the EPA later approved revisions to Reg. 7, Sections I
through XI and Sections XIII through XVI.\13\ The EPA also approved
Reg. 7 revisions to control emissions from rich-burn reciprocating
internal combustion engines in Section XVII.E.3.a.\14\
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    \11\ Final rule, Colorado: Approval and Promulgation of State
Implementation Plans, 46 FR 16687 (March 13, 1981).
    \12\ Final rule, Approval and Promulgation of Air Quality
Implementation Plans; State of Colorado; Regulation No. 7, Section
XII, Volatile Organic Compounds From Oil and Gas Operations, 73 FR
8194 (Feb. 13, 2008).
    \13\ Final rule, Approval and Promulgation of State
Implementation Plans; State of Colorado; Attainment Demonstration
for the 1997 8-Hour Ozone Standard, and Approval of Related
Revisions, 76 FR 47443 (Aug. 5, 2011).
    \14\ Final rule, Approval and Promulgation of Implementation
Plans; State of Colorado; Regional Haze State Implementation Plan,
77 FR 76871 (Dec. 31, 2012).
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    Most recently, in 2018 the EPA approved Reg. 7 revisions in
Sections XII (emission control requirements for volatile organic
compounds (VOCs) from oil and gas operations), and XIII (emission
control requirements for VOC emissions from graphic art and printing
processes),\15\ as well as non-substantive revisions to numerous other
parts of the regulation.\16\
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    \15\ In this document we are correcting the previous inadvertent
omission of IBR material from the regulatory text for this action.
    \16\ See 83 FR at 31068, 31071.
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III. Summary of the State's SIP Submittals

    We are proposing to take action on Colorado SIP submittals made on
three different dates:

May 31, 2017 Submittal

    This submittal contains revisions to Reg. 7 that the EPA has not
yet acted on. These include Sections X (Use of Cleaning Solvents), XVI
(Controls of Emissions from Stationary and Portable Engines and Other
Combustion Equipment in the 8-Hour Ozone Control Area), and XIX
(Control of Emissions from Specific Major Sources of VOC and/or
nitrogen oxides (NOX) in the 8-hour Ozone Control Area). In
addition, this submittal contains graphic arts and printing revisions
to Section XIII. In our final rule published in the Federal Register on
July 3, 2018, we inadvertently did not include regulatory text and
corresponding IBR materials for our approval to graphic arts and
printing revisions to Reg. 7, Section XIII (adopted November 17,
2016).\17\ The EPA is proposing to correct this error with today's
action. The IBR material for our July 3, 2018 action is in the docket
for this action.
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    \17\ See 83 FR at 31068.
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May 14, 2018 Submittal

    This submittal contains amendments to Reg. 7 Sections XII and XVIII
to meet RACT for oil and gas sources covered by EPA's 2016 Oil and Gas
Control Techniques Guideline (CTG). The submittal also includes
clarifying revisions and typographical, grammatical, and formatting
corrections throughout Reg. 7.

May 10, 2019 Submittals

    On this date the State submitted two SIP revisions. One submittal
contains amendments to Reg. 7 that establish categorical RACT
requirements for major sources of NOX in the DMNFR Area.
Specifically, on July 19, 2018 the AQCC adopted RACT requirements in
Section XVI.D. for boilers, stationary combustion turbines, lightweight
aggregate kilns, glass melting furnaces, and compression ignition
reciprocating internal combustion engines (``RICE'') (collectively
referred to as ``stationary combustion equipment'') located at major
sources of NOX.\18\
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    \18\ On June 29, 2018, the EPA provided comments on Colorado's
revised draft ozone SIPs for the DMNFR Area, including the TSD and
rules in Reg. 7, Section XVI.D.4. These written comments from the
EPA included some comments applicable to the rules we are proposing
to act on today. The comment letters can be found within the docket
for this action at www.regulations.gov.
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    The other submittal contains amendments to Reg. 7 that were adopted
by the AQCC on November 15, 2018. The revisions include RACT
requirements in Section XX for brewing-related activities at major
sources of VOC, and RACT requirements in Section IX for wood furniture
surface coating operations. The submittal also includes revisions to
IBR dates to rules and reference methods in Sections II, VI, VIII, IX,
X, XII, XIII, XVI and XVII. Lastly, the submittal contains SIP cleanup
revisions, including removal of a one-time RACT reporting requirement
in Section I, adds a surface coating work practice in Section IX, and
revises an exemption in the industrial cleaning solvent requirements in
Section X. Typographical, grammatical, and formatting corrections were
also made.

IV. Procedural Requirements

    The CAA requires that states meet certain procedural requirements
before submitting SIP revisions to the EPA, including the requirement
that states adopt SIP revisions after reasonable notice and public
hearing.\19\ For the May 31, 2017 submittal, the AQCC provided notice
in the Colorado Register on July 29 and August 29, 2016, and held a
public hearing on the SIP revisions on November 17, 2016. The
Commission adopted the SIP revisions on November 17, 2016. The SIP
revisions became state-effective on January 14, 2017.
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    \19\ CAA section 110(a)(2), 42 U.S.C. 7410(a)(2),
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    For the May 14, 2018 submittal, the AQCC provided notice in the
Colorado Register on July 22, 2017 and held a public hearing on the
revisions on October 19 and 20, 2017. The Commission adopted the SIP
revisions on November 16, 2017. The SIP revisions became state-
effective on December 20, 2017.
    For the May 10, 2019 submittal (RACT for combustion sources), the
AQCC provided notice in the Colorado Register on April 21, 2018 and
held a public hearing on the revisions on July 19, 2018. The Commission
adopted the SIP revisions on July 19, 2018. The SIP revisions became
state-effective on September 14, 2018.
    For the May 10, 2019 submittal (RACT for brewing related activities
and wood furniture surface coating operations), the AQCC provided
notice in the Colorado Register on August 18, 2018 and held a public
hearing on the revisions on November 15, 2018. The Commission adopted
the SIP revisions on November 15, 2018. The revisions became state-
effective on January 14, 2019.
    Accordingly, we propose to find that Colorado met the CAA's
procedural requirements for reasonable notice and public hearing.

V. Reasonably Available Control Technology (RACT) Analysis

A. Background

    The CAA requires that SIPs for nonattainment areas ``provide for
the

implementation of all reasonably available control measures as
expeditiously as practicable (including such reductions in emissions
from existing sources in the area as may be obtained through the
adoption, at a minimum, of reasonably available control technology).''
\20\ The EPA has defined RACT as the lowest emissions limitation that a
particular source is capable of meeting by the application of control
technology that is reasonably available, considering technological and
economic feasibility.\21\ The CAA amendments of 1990 introduced the
requirement for existing major stationary sources of NOX in
nonattainment areas to install and operate NOX RACT.
Specifically, section 182(b)(2) of the CAA requires states to adopt
RACT for all major sources of VOC not covered by an existing CTG in
ozone nonattainment areas, and section 182(f) requires the RACT
provisions for major stationary sources of NOX.
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    \20\ CAA section 172(c)(1), 42 U.S.C. 7502(c)(1).
    \21\ Proposed rule, General Preamble for Proposed Rulemaking on
Approval of Plan Revisions for Nonattainment Areas--Supplement (on
Control Techniques Guidelines), 44 FR 53761, 53762 (Sep. 17, 1979).
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    The EPA provides guidance concerning what types of controls can
constitute RACT for a given source category by issuing CTG and
Alternative Control Techniques (ACT) documents.\22\ States must submit
a SIP revision requiring the implementation of RACT for each source
category in the area for which the EPA has issued a CTG, and for any
major source in the area not covered by a CTG.\23\
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    \22\ See https://www.epa.gov/ground-level-ozone-pollution/control-techniques-guidelines-and-alternative-control-techniques
(accessed April. 27, 2020) for a list of EPA-issued CTGs and ACTs
(also available within the docket).
    \23\ See CAA section 182(b)(2), 42 U.S.C. 7511a(b)(2)). See also
Note, RACT Qs & As--Reasonably Available Control Technology (RACT):
Questions and Answers, William Harnett, Director, Air Quality Policy
Division, EPA (May 2006), available at https://www3.epa.gov/ttn/naaqs/aqmguide/collection/cp2/20060518_harnett_ract_q&a.pdf.
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    For a Moderate nonattainment area, a major stationary source is one
that emits, or has the potential to emit, 100 tons per year (tpy) or
more of VOCs or NOX.\24\ RACT can be adopted in the form of
emission limitations or ``work practice standards or other operation
and maintenance requirements,'' as appropriate.\25\ In assessing RACT
requirements under the Moderate classification, the Colorado Air
Pollution Control Division (Division) identified 51 major sources in
the DMNFR Area, operated by 32 companies.
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    \24\ See CAA sections 182(b), 42 U.S.C. 7511a(b); and 302(j), 42
U.S.C. 7602(j).
    \25\ See Memorandum, ``Approval Options for Generic RACT Rules
Submitted to Meet the non-CTG VOC RACT Requirement and Certain
NOX RACT Requirements,'' Sally Shaver, Director, Air
Quality Strategies & Standards Division, EPA (Nov. 7, 1996),
available at https://www.epa.gov/sites/production/files/2016-08/documents/shavermemogenericract_7nov1996.pdf.
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    In November 2016, the Commission determined that some major sources
and CTG VOC source categories were adequately addressed under existing
SIP requirements. The Commission also adopted new requirements for some
major sources and CTG VOC source categories. In July 2018, the
Commission adopted categorical RACT requirements for combustion
equipment at major sources that the Commission had determined in 2016
were not addressed by SIP RACT requirements. In November 2018, the
Commission adopted SIP requirements to include provisions that
implement RACT for major sources of VOC and NOX and for all
CTG VOC source categories in the DMNFR ozone nonattainment area (NAA).
Specifically, the Commission adopted categorical RACT requirements for
combustion equipment at major sources, major source breweries and wood
furniture manufacturing, and addressed EPA concerns with industrial
cleaning solvent and metal furniture surface coating requirements.\26\
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    \26\ The Commission also adopted miscellaneous metal surface
coating requirements. We will be making our RACT determination for
these sources in a future rulemaking.
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B. Evaluation

    As part of its May 31, 2017 and May 10, 2019 submittals, the
Division conducted RACT analyses to demonstrate that the RACT
requirements for CTG and major sources in the DMNFR 2008 8-hour ozone
NAA have been fulfilled. The Division conducted these RACT analyses for
VOC and NOX by listing the state regulation that implements
or exceeds RACT requirements for each CTG or non-CTG category at issue,
and by detailing the basis for concluding that these regulations
fulfill RACT, through comparison with established RACT requirements
described in the CTG and ACT guidance documents and rules developed by
other state and local agencies. A summary of our proposed action with
respect to each RACT category follows.

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                Category                        Proposed action              Location of RACT demonstration
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Aerospace...............................  Conditional approval of the  n/a.
                                           State's negative
                                           declaration that there are
                                           no sources in the DMNFR
                                           Area subject to the
                                           aerospace CTG.
Certain Major sources of NOX and VOC....  Approval...................  pp. 1119-1120 and 1142-1149 of the May
                                                                        31, 2017 submittal and the Technical
                                                                        Support Document for Reasonably
                                                                        Available Control Technology for Major
                                                                        Sources, November 17, 2016 (p. 2990-3273
                                                                        of May 10, 2017 submittal).
Combustion equipment at major sources...  Approval...................  Categorical Reasonably Available Control
                                                                        Technology Review for Boilers, Turbines,
                                                                        Engines, Glass Melt Furnaces and
                                                                        Aggregate Kilns and Major NOX Sources in
                                                                        the Denver Metro/North Front Range Ozone
                                                                        Nonattainment Area, July 2018, document
                                                                        set 25 (contained within the May 31,
                                                                        2019 submittal for combustion
                                                                        equipment).
Industrial cleaning solvents............  Approval...................  p. 1116 of the May 31, 2017 submittal and
                                                                        p. 4 of the Statement of Basis, document
                                                                        set 18 (contained within the May 10,
                                                                        2019 submittal for RACT for brewing
                                                                        related activities and wood furniture
                                                                        surface coating operations).
Major Source Breweries..................  Approval...................  State of Colorado Categorical Reasonable
                                                                        Available Control Technology Review for
                                                                        Brewing and Wood Furniture Surface
                                                                        Coating TSD, October 30, 2018, p. 5,
                                                                        document set 21 (contained within the
                                                                        May 10, 2019 submittal).
Metal furniture coatings................  Approval...................  p. 1126 of the May 31, 2017 submittal.

Wood furniture manufacturing............  Approval...................  pp. 1115 and 1135 of the May 31, 2017
                                                                        submittal, and p. 24 of the State of
                                                                        Colorado Categorical Reasonable
                                                                        Available Control Technology Review for
                                                                        Brewing and Wood Furniture Surface
                                                                        Coating TSD, October 30, 2018, document
                                                                        set 21 (contained within the May 10,
                                                                        2019 submittal).
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Cited materials are contained within the docket for this action.

    In our July 3, 2018 rulemaking, we approved Colorado's
demonstration of RACT for certain VOC CTG sources \27\ for the 2008 8-
hour ozone standard. Today we are taking action on the RACT
demonstrations for certain additional VOC CTG, non-CTG VOC, and
NOX sources and categories. We have reviewed Colorado's new
and revised VOC and NOX rules for the source categories
covered by the CTGs, and for major sources of non-CTG VOC and
NOX sources for the 2008 8-hour ozone NAAQS, and the
demonstrations submitted by Colorado. Based on this review we propose
to find that these rules are consistent with the control measures,
definitions, recordkeeping, and test methods in these CTGs and the CAA,
and that they satisfy CAA RACT requirements for the categories in
question.\28\
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    \27\ 83 FR at 31069-31070; see Proposed Rule, Promulgation of
State Implementation Plan Revisions; Colorado; Attainment
Demonstration for the 2008 8-Hour Ozone Standard for the Denver
Metro/North Front Range Nonattainment Area, and Approval of Related
Revisions, 83 FR 14807, 14814-141815, Tables 5 and 6 (Apr. 6, 2018).
    \28\ See https://www.epa.gov/ground-level-ozone-pollution/ractinformation.
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1. RACT for CTG Sources
    Table 1 contains a list of CTG source categories, EPA reference
documents, and the corresponding sections of Reg. 7 that fulfill the
applicable RACT requirements for EPA-issued CTGs.\29\ Colorado's Reg. 7
contains SIP-approved \30\ and submitted revisions (see Section IV of
this document); we propose to find that these revisions meet RACT
requirements for the source categories listed in Table 1.
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    \29\ See EPA's TSD for a full analysis of Colorado's rules as
they relate to EPA guidelines and available technical information.
We will be acting on the RACT demonstrations for the Oil and Gas
2016 CTG source category, the Miscellaneous Metal Products Coatings
category, and for sources of NOX in the categories for
process heaters, glass melting furnaces, and pre 2005 turbines in a
future action.
    \30\ See 76 FR at 47443 and 83 FR at 31069-31070.
    \31\ See p. 1126 of the May 31, 2017 submittal for Colorado's
RACT demonstration for Metal furniture coatings.
    \32\ See p. 1115 and p. 1135 of the May 31, 2017 submittal, and
p. 24 of the State of Colorado Categorical Reasonable Available
Control Technology Review for Brewing and Wood Furniture Surface
Coating TSD, October 30, 2018, document set 21 (contained within the
May 10, 2019 submittal).
    \33\ See p. 1116 of the May 31, 2017 submittal.
    \34\ See Colorado's August 4, 2020 letter committing to submit
to EPA a negative declaration certifying that there are no sources
in the DMNFR Area above the aerospace CTG applicability threshold
(contained within the docket). The EPA proposes to conditionally
approve Colorado's determination that there are no sources in the
DMNFR Area subject to the aerospace CTG and therefore RACT is
satisfied for this category. If we finalize our proposed conditional
approval, Colorado must submit the negative declaration, after state
notice and public hearing, to EPA within one year of our
finalization. If Colorado does not submit the negative declaration
within one year, or if we find Colorado's revisions to be
incomplete, or we disapprove Colorado's revisions, this conditional
approval will convert to a disapproval. If any of these occur and
our conditional approval converts to a disapproval, that will
constitute a disapproval of a required plan element under part D of
title I of the Act, which starts an 18-month clock for sanctions,
see CAA section 179(a)(2), and the two-year clock for a federal
implementation plan, see CAA section 110(c)(1)(B).

  Table 1--Source Categories, EPA CTG Reference Documents, and Corresponding Sections of Reg. 7 Fulfilling RACT
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                                                                                Reg. 7 sections fulfilling
      Source category in DMNFR Area         CTG reference  document     Date of CTG              RACT
----------------------------------------------------------------------------------------------------------------
Metal Furniture Coatings \31\...........  Control Techniques                    2007  Sections V and IX (already
                                           Guidelines for Metal                        SIP approved except
                                           Furniture Coatings.                         XI.A.9.a.(ii) proposed
                                                                                for approval in this
                                                                                action).
Wood Furniture Manufacturing Operations   Control of Volatile                   1996  Sections V (already SIP
 \32\.                                     Organic Compound                            approved) and IX.O
                                           Emissions from Wood                         (proposed for approval in
                                           Furniture Manufacturing                     this action).
                                           Operations.
Industrial Cleaning Solvents \33\.......  Control Techniques                    2006  Sections V (already SIP
                                           Guidelines for Industrial                   approved) and X (proposed
                                           Cleaning Solvents.                          for approval in this
                                                                                action).
Aerospace \34\..........................  Control of Volatile                   1997  No sources above the CTG
                                           Organic Compound                            applicability threshold
                                           Emissions from Coating                      in the DMNFR Area
                                           Operations at Aerospace                     (negative declaration
                                           Manufacturing and Rework                    proposed for conditional
                                           Operations.                                 approval in this action).
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    We have reviewed the emission limitations and control requirements
for the above source categories and compared them against the EPA's CTG
documents and available technical information in CTG dockets and
regional RACT determinations. The EPA has also evaluated the submitted
rules \35\ and has determined that they are consistent with the CAA,
EPA regulations, and EPA policy. For more information, see the EPA TSD
prepared in conjunction with this action. Based on the information in
the record, we propose to find that the corresponding sections in Reg.
7 provide for the lowest emission limitation through application of
control techniques that are reasonably available considering
technological and economic feasibility. Therefore, we propose to find
that the control requirements for the source categories identified in
Table 1 are RACT for all affected sources in the DMNFR Area under the
2008 8-hour ozone NAAQS.
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    \35\ See 83 FR at 31068 and section V of this proposed rule.
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2. RACT for Non-CTG Major Sources
    In Appendix 6-F of the May 31, 2017 submittal, Colorado identified
a list of major non-CTG VOC and NOX sources

in the DMNFR Area. The State reviewed its point source inventory to
verify that major sources of VOC and NOX emissions in the
NAA are subject to requirements that meet or exceed RACT. For major VOC
and NOX sources subject to NAA RACT review, Colorado used
the construction permit thresholds established in the State's Reg. 3
for determining which emission points to review. Accordingly, emission
points exceeding two tpy of VOC at a major VOC source and five tpy of
NOX at a major NOX source, as reported on source
Air Pollutant Emission Notices, were evaluated. We have reviewed the
State's May 31, 2017 submittal and find its approach to including these
sources in the inventory acceptable.
    On November 17, 2016, to satisfy the Moderate RACT SIP requirement
to establish RACT for all existing major sources of VOC and/or
NOX in the DMNFR Area, the Commission incorporated by
reference several New Source Performance Standards (NSPS) and National
Emission Standards for Hazardous Air Pollutants (NESHAP)
regulations.\36\ The Division also developed the stationary combustion
equipment and brewery categorical RACT standards, based on a detailed
review of the information provided by owners and operators of major
NOX and VOC sources in the DMNFR Area, an examination of the
EPA RACT/Best Available Control Technology/Lowest Achievable Emission
Rate Clearinghouse for similar emission points, and consideration of
CAA section 182(b) RACT requirements for other ozone nonattainment
areas. Table 2 contains a list of non-CTG source category EPA reference
documents and the corresponding sections of Reg. 7 that are proposed
for approval in this action to fulfill RACT requirements (see Section
IV of this document).\37\
---------------------------------------------------------------------------

    \36\ The EPA previously approved Colorado's rule revisions and
RACT analyses for VOCs into Colorado's SIP under the 1-hour ozone
standard. See Final rule, Approval and Promulgation of Air Quality
Implementation Plans; Colorado; Regulation 7, 60 FR 28055 (May 30,
1995).
    \37\ See the EPA's TSD for a full analysis of Colorado's rules
as they relate to EPA guidelines and available technical
information.

 Table 2--Source Categories, EPA Reference Documents, and Corresponding Sections of Reg. 7 Proposed for Approval
                                                 To Fulfill RACT
----------------------------------------------------------------------------------------------------------------
  Source category in the DMNFR Area    EPA reference documents                               Reg. 7 sections
                 \38\                      (if applicable)            Date of ACT            fulfilling RACT
----------------------------------------------------------------------------------------------------------------
Stationary Internal Combustion         NOX Emissions from       July 1993, Updated       Applicable provisions
 Engines \39\.                          Stationary Internal      September 2000.          in XVI.D. and XIX.A.
                                        Combustion Engines                                (proposed for approval
                                        (EPA-453/R-93-032).                               in this action).
Commercial & Institutional Boilers     NOX Emissions from       March 1994.............  Applicable provisions
 \40\.                                  Industrial, Commercial                            in XVI.D. (proposed
                                        and Institutional                                 for approval in this
                                        Boilers (EPA-453/R-94-                            action).
                                        022).
Stationary Combustion Turbines \41\..  NOX Emissions from       January 1993...........  Applicable provisions
                                        Stationary Gas                                    in XVI.D. (proposed
                                        Turbines (EPA-453/R-93-                           for approval in this
                                        007).                                             action, except
                                                                                XVI.D.4.b.(i) which
                                                                                will be acted on at a
                                                                                later date).
Utility Boilers \42\.................  NOX Emissions from       March 1994.............  Applicable provisions
                                        Utility Boilers (EPA-                             in XVI.D. (proposed
                                        453/R-94-023).                                    for approval in this
                                                                                action).
Cement Manufacturing \43\............  NOX Emissions from       March 1994/September     XIX.B. (proposed for
                                        Cement Manufacturing     2000.                    approval in this
                                        (EPA-453/R-94-004) and                            action).
                                        NOX Control
                                        Technologies for the
                                        Cement Industry: Final
                                        Report (EPA-457/R-00-
                                        002)..
Landfill Gas Flares \44\.............  .......................  .......................  XIX.C. (proposed for
                                                                                approval in this
                                                                                action).
Brewing Operations \45\..............  .......................  .......................  XX. (proposed for
                                                                                approval in this
                                                                                action).
----------------------------------------------------------------------------------------------------------------

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    \38\ Colorado's major source RACT analysis can be found on pp.
1119-1120 and 1142-1149 of the May 31, 2017 submittal and the
Technical Support Document for Reasonably Available Control
Technology for Major Sources, November 17, 2016 (pp. 2990-3273 of
May 31, 2017 submittal).
    \39\ See pp. 21-26 of the Categorical Reasonably Available
Control Technology Review for Boilers, Turbines, Engines, Glass Melt
Furnaces and Aggregate Kilns and Major NOX Sources in the
Denver Metro/North Front Range Ozone Nonattainment Area, July 2018.
Contained within the May 10, 2019 submittal for combustion equipment
(document set 25).
    \40\ See id. pp. 9-15.
    \41\ See id. pp. 16-21.
    \42\ See id. pp. 9-15.
    \43\ See May 31, 2017 submittal at 1145; Technical Support
Document for Reasonably Available Control Technology for Major
Sources, at 3005 (Nov. 17, 2016) (contained in the May 10, 2017
submittal).
    \44\ See id. at 3015-3016.
    \45\ See State of Colorado Categorical Reasonable Available
Control Technology Review for Brewing and Wood Furniture Surface
Coating TSD, document set 21, at 5-24 (Oct. 30, 2018) (contained in
the May 10, 2019 submittal).
---------------------------------------------------------------------------

    We have reviewed the emission limitations and control requirements
for the source categories in Table 2 and compared them against EPA's
ACT documents, available technical information, and guidelines. The EPA
has also evaluated the submitted rules \46\ and has determined that
they are consistent with the CAA, EPA regulations, and EPA policy. For
more information, see the EPA TSD prepared in conjunction with this
action. Based on the information in the record, we propose to find that
the corresponding sections in Reg. 7 provide for the lowest emission
limitation through application of control techniques that are
reasonably available considering technological and economic
feasibility. Therefore, we propose to find that, with the noted
exceptions, the control requirements for the source categories
identified in Table 2 are RACT for all affected sources in the DMNFR
Area under the 2008 8-hour ozone NAAQS. We also propose to find that
for VOC RACT requirements at major non-CTG VOC sources, Colorado has
RACT-level controls in place for the DMNFR Area under the 2008 8-hour
ozone standard. We are not finalizing our RACT determination for major
sources of NOX in this document because we have requested
additional analyses from Colorado for older turbines and process
heaters.
---------------------------------------------------------------------------

    \46\ See 83 FR at 31068 and section V of this proposed rule.

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

VI. EPA's Evaluation of SIP Control Measures in Reg. 7

    We evaluated Colorado's May 31, 2017, May 14, 2018, and May 10,
2019 submittals regarding revisions to the State's Reg. 7 to meet RACT
requirements for various source categories. Revisions to Reg. 7 include
emission control requirements for surface coating operations, use of
cleaning solvents, oil and gas operations, stationary and portable
combustion equipment, major sources of VOC and/or NOX in the
ozone NAA, and breweries. The revisions establish RACT requirements for
certain CTG categories and emission points at major sources of VOC and
NOX in the DMNFR Area. Reg. 7 revisions also add
incorporation by reference dates to rules and reference methods; and
correct typographical, grammatical, and formatting errors. For ease of
review, Colorado submitted the full text of Reg. 7 as SIP revisions
(with the exception of provisions designated ``State Only''). The EPA
is only seeking comment on Colorado's proposed substantive changes to
the SIP-approved version of Reg. 7, which are described below. We are
not seeking comment on incorporation into the SIP of the revised
portions of the regulation that were previously approved into the SIP
and have not been substantively modified by the State as part of any of
these submittals.
    As noted above, Colorado designated various parts of Reg. 7 ``State
Only,'' and in Section I.A.1.c indicated that sections designated State
Only are not federally enforceable. The EPA concludes that provisions
designated State Only have not been submitted for EPA approval, but for
informational purposes. Hence, the EPA is not proposing to act on the
portions of Reg. 7 designated State Only, and this proposed rule does
not discuss them further except as relevant to discussion of the
portions of the regulation that Colorado intended to be federally
enforceable.

A. Evaluation

1. May 31, 2017 SIP Submittal
    The State's May 31, 2017 SIP submittal contains amendments to Reg.
7 that were not acted on in our July 3, 2018 rulemaking.\47\ We propose
to approve the changes included in Colorado's May 31, 2017 submittal,
as identified in Table 4.\48\ Below, we describe in detail Colorado's
proposed revisions and the basis for our proposed approval of them.
---------------------------------------------------------------------------

    \47\ 83 FR at 31068.
    \48\ All other sections of Reg. 7 addressed in the May 31, 2017
submission have been superseded by the State's May 14, 2018 and May
10, 2019 submissions. The EPA is not acting on the superseded
earlier submissions.
---------------------------------------------------------------------------

a. Section X
    Section X regulates VOC emissions from and establishes RACT for the
use of cleaning solvents. Changes to Sections X, X.A.1, X.A.2.b.- j.,
X.B.1.d.(ii), and X.D.1.a.(i) include clarification of the
applicability of Section X, addition of an effective date for Section X
requirements, addition of definitions for terms used in industrial
cleaning solvent operations, and minor clerical \49\ revisions that do
not affect the substance of the requirements.
---------------------------------------------------------------------------

    \49\ When we describe changes as clerical in this proposed
action, we are referring to changes like section renumbering;
alphabetizing of definitions; minor grammatical, editorial, and
typographical revisions; and changes in capitalization.
---------------------------------------------------------------------------

    Section X.E. addresses VOC emissions from industrial cleaning
solvent operations. Section X.E.1 sets forth control requirements for
owners and operators of industrial cleaning solvent operations with
uncontrolled and non-exempt VOC emissions of three tons per year or
more. These owners and operators must limit the VOC content of cleaning
solvents to less than or equal to 0.42 lb of VOC/gal (50 grams VOC/
liter), limit the composite partial vapor pressure of cleaning solvent
to 8 millimeters of mercury (mmHg) at 20 degrees Celsius (68 degrees
Fahrenheit), and reduce VOC emissions with an emission control system
having a control efficiency of 90% or greater. Section X.E.2. adds work
practice requirements to reduce VOC emissions from fugitive sources,
while Section X.E.3. contains monitoring, recordkeeping, and reporting
requirements to demonstrate compliance with the control requirements in
Section X.E. Section X.E.4.contains exemptions from the requirements in
X.E. We are proposing to approve the exemptions in X.E.4., X.E.4.b.,
X.E.4.b.(i)-(xi), X.E.4.c., and X.E.4.c.(i)-(ii) from the May 31, 2017
SIP submittal. All other exemptions in Section X.E. have been
superseded by the May 10, 2019 submittal.
    We propose to find that the provisions are consistent with CAA
requirements and CTGs, and that they strengthen the SIP, and therefore
we propose to approve the changes in Section X.
b. Section XVI
    Section XVI specifies emission control requirements for stationary
and portable combustion equipment. Section XVI.D.\50\ adds a combustion
adjustment requirement for individual pieces of combustion equipment at
major sources of NOX in Section XVI.D. The requirements in
Section XVI.D.\51\ apply to boilers, duct burners, process heaters,
stationary combustion turbines and stationary reciprocating internal
combustion engines that have uncontrolled actual NOX
emissions equal to or greater than 5 tpy that existed at major sources
of NOX as of June 3, 2016. Sections XVI.D.2.a-d include
inspection and adjustment requirements for boilers, process heaters,
duct burners, stationary combustion turbines and stationary internal
combustion engines. Section XVI.D.2.e requires owners and operators to
operate and maintain equipment subject to Section XVI.D. consistent
with manufacturer's specifications or good engineering and maintenance
practices. Section XVI.D.2.f outlines combustion adjustment frequency
requirements. Section XVI.D.4 sets forth alternative options to the
requirements in Sections XVI.D.2.a-e and XVI.D.3.a, including
conducting combustion process adjustments according to manufacturer's
recommended procedures and schedules, and conducting tune-ups or
adjustments according to schedules and procedures of applicable NSPS or
NESHAPs.\52\
---------------------------------------------------------------------------

    \50\ Renumbered to XVI.D.6.b. in May 10, 2019 submittal.
    \51\ Sections XVI.D.1, XVI.D.1(a)-(e), and XVI.D.3. are
superseded by the May 10, 2019 submittal.
    \52\ See also p. 3082 of the May 31, 2017 submittal (contained
within the docket).
---------------------------------------------------------------------------

    We propose to find that the provisions in Section XVI.D are
consistent with CAA requirements, and that they strengthen the SIP.
Therefore, and for the reasons explained above, we propose to approve
the changes in Section XVI.
c. Section XIX
    Section XIX establishes RACT requirements for emission points at
certain major sources of VOC and NOX in the DMNFR Area. We
are proposing approval of Sections XIX.D, XIX.F., and XIX.G. from the
May 31, 2017 submittal. All other parts of Section XIX have been
superseded by subsequent submittals. Section XIX.D sets forth emission
limits and monitoring, recordkeeping, and reporting (MRR) requirements
for major sources of stationary internal combustion engines. Sections
XIX.F. and XIX.G. establish requirements for certain major sources to
meet RACT.\53\
---------------------------------------------------------------------------

    \53\ See the TSD associated with this action for a detailed RACT
analysis associated with these revisions.
---------------------------------------------------------------------------

    We propose to find that the provisions in Section XIX strengthen
the SIP, are consistent with CAA requirements, and establish RACT
requirements for certain

major sources by incorporating federal regulations. We therefore
propose to approve the changes in Section XIX.
2. May 14, 2018 SIP Submittal
    The State's May 14, 2018 SIP submittal contains amendments to Reg.
7 Sections XII and XVIII to meet RACT for oil and gas sources covered
by EPA's 2016 Oil and Gas CTG. The submittal also includes clarifying
revisions and typographical, grammatical and formatting corrections
throughout Reg. 7. We propose to approve the typographical, grammatical
and formatting corrections made to Sections I, II, III, V, VI, VII,
VIII, IX, X, XI, XIII, XIV, XV and XVI with Colorado's May 14, 2018
submittal. The revisions in this section are clerical in nature and do
not affect the substance of the requirements. Therefore, we propose to
approve the changes.
    We are not acting on any submitted changes to Sections XII or XVII.
These revisions will be acted on at a later date.
3. May 10, 2019 SIP Submittal (Combustion Equipment)
    The State's May 10, 2019 SIP submittal contains amendments to Reg.
7, Sections XVI and XIX, establishing categorical and source specific
RACT requirements for major sources of VOC and/or NOX in the
DMNFR Area. We propose to approve the changes made to Section XVI
except for Section XVI.D.4.b.(i) and XVI.D.4.d. which we will act on at
a later date. We also propose to approve the changes made to Section
XIX with Colorado's May 10, 2019 submittal.
    Below, we describe in detail Colorado's proposed revisions and the
basis for our proposed approval of such revisions.
a. Section XVI
    As previously stated, Section XVI specifies emission control
requirements for stationary and portable combustion equipment. One
revision to Section XVI updates the title to the Section. This revision
is clerical in nature and does not affect the substance of the
requirement.
    The other revisions to Section XVI that we are considering in this
action concern Section XVI.D., which establishes requirements for major
sources of NOX within the DMNFR Area. Section XVI.D.1.
(``Applicability'') establishes the geographic scope of the rule and
the sources that are subject to Section XVI.D. requirements. Owners and
operators of stationary combustion equipment, as defined in Section
XVI.D.3.n., located at a major source of NOX as of June 3,
2016 in the DMNFR Area, must comply with the requirements of XVI.D.
unless exempted under XVI.D.2. We propose to find that this is
consistent with CAA requirements.
    Section XVI.D.2. outlines exemptions from control requirements in
Section XVI.D. Section XVI.D.2.a. contains a 20% capacity factor
exemption for boilers and a 10% capacity factor exemption for
stationary combustion turbines and compression ignition reciprocating
internal combustion engines. The capacity factor exemptions consolidate
a number of limited-use exemptions that were analyzed and considered by
the Division to limit the complexity of the categorical rules and to
adequately accommodate technical and cost concerns for limited-use
equipment. Once stationary combustion equipment no longer qualifies for
any exemption, the owner or operator must comply with the applicable
requirements of Section XVI.D.
    Stationary combustion equipment that meets one of the exemptions
contained in Section XVI.D.2. is not required to comply with the
emission limitations, the compliance demonstration requirements and the
related recordkeeping and reporting requirements in Sections XVI.D.4.,
XVI.D.5., XVI.D.7. and XVI.D.8., except for XVI.D.7.g, which requires a
source that qualifies for an exemption under Section XVI.D.2. to
maintain records demonstrating that an exemption applies. All
stationary combustion equipment is subject to some level of
recordkeeping and may also be subject to combustion process adjustment
requirements in Section XVI.D.6. The technical support document in the
docket for this action has more details on the justification for these
exemptions. These exemptions are consistent with exemptions allowed in
other state federally enforceable rules,\54\ and meet CAA requirements.
Accordingly, we propose to approve these revisions.
---------------------------------------------------------------------------

    \54\ See, e.g., Wisconsin Control of Nitrogen Compound Emissions
rule, Wis. Admin. Code NR Sec.  428.08 (2020).
---------------------------------------------------------------------------

    Section XVI.D.3. contains definitions specific to Section XVI.D.
The definitions are clear, straightforward, and accurate.
    Section XVI.D.4. establishes NOX emission rate limits by
source category applicable to emission units operating above the
applicability threshold. The source categories, emission limitations,
and Reg. 7 rule citation are presented in Table 3. The emission limits
contained in the rule are a 30-day rolling average requirement
applicable on a year-round basis. A unit subject to an emission
limitation must demonstrate compliance by October 1, 2021. The
following emission limits established in Section XVI.D.4. are
consistent with CAA requirements applicable to the various categories
for which ACT documents have been issued and with more recent state and
federal NOX control programs.

     Table 3--Affected Sources and NOX Emission Requirements for Boilers, Engines, Turbines, and Lightweight
                                        Aggregate Kilns in the DMNFR Area
----------------------------------------------------------------------------------------------------------------
                                          NOX emission
          Source category             limitation  (30 day     Additional information            Citation
                                        rolling average)
----------------------------------------------------------------------------------------------------------------
Boilers \55\.......................  0.2 lbs/MMBtu........  Gaseous and liquid fuel-    XVI.D.4.a.
                                                             fired with design heat
                                                             input >=100 MMBtu/hr.
Reciprocating Internal Combustion    9.0 g/bhp-hr.........  Maximum design power        XVI.D.4.e.
 Engines \56\.                                               output equal to or
                                                             greater than 500
                                                             horsepower.
Turbines \57\......................  Applicable NOX limits  Maximum design heat input   XVI.D.b.(ii).
                                      in 40 CFR part 60,     capacity equal to or
                                      subpart KKKK.          greater than 10 MMBtu/hr.
                                                             For turbines that
                                                             commenced construction,
                                                             modification, or
                                                             reconstruction after Feb.
                                                             18, 2005.
Lightweight aggregate kilns \58\...  56.6 lbs NOX per hour  ..........................  XVI.D.4.c.
----------------------------------------------------------------------------------------------------------------

    By October 1, 2021, owners or operators must determine compliance
with emission limitations in Section XVI.D.4. in accordance with one of
the methods in Section XVI.D.5. Section XVI.D.5. requires most sources
subject to emission limitations to demonstrate compliance using
continuous emissions monitoring. For electric generating unit sources,
this monitoring is based on 40 CFR part 75 methods, and for industrial
sources monitoring is based on 40 CFR part 60 methods. For a few source
categories with low variability in operations or emission rates,
compliance is demonstrated by periodic stack testing. The emission
monitoring requirements are consistent with existing State and EPA
programs.
---------------------------------------------------------------------------

    \55\ See Table 4 in Colorado's ``Categorical RACT Review for
Boilers, Turbines, Engines, Glass Melt Furnaces and Aggregate Kilns
at Major NOX Sources in the DMNFR NAA'' TSD (July 2018)
for a list of boilers potentially subject to XVI.D.4.a.
    \56\ See Table 11 in Colorado's TSD (July 2018) for a list of
compression ignition engines potentially subject to XVI.D.e.
    \57\ See Table 9 in Colorado's TSD (July 2018) for a list of
turbines potentially subject to XVI.D.e.
    \58\ There is one lightweight aggregate kiln at a major source
of NOX in the DMNFR NAA. RACT for this kiln is analyzed
on p. 28-30 in Colorado's TSD (July 2018).
---------------------------------------------------------------------------

    Colorado's May 10, 2019 submittal renumbers the combustion process
adjustment requirements in XVI.D.6. (previously Sections XVI.D.1. and
2); clarifies the applicability of the requirements in XVI.D.6.a.;
moves definitions for boilers, duct burners, process heaters,
stationary combustion turbines and stational internal combustion
engines to Section XVI.D.3.; and revises section references in Section
XVI.D.6.b.(vi)(B). These revisions do not affect the substance of the
Section XVI.D. requirements we propose to approve from the May 31, 2017
submittal. We therefore propose to approve these changes.
    Sections XVI.D.7. and 8 require all affected unit owners and
operators to maintain records for five years and submit reports to the
Division. These records and reports will be used to determine
compliance, instances of noncompliance, and to determine if exempt
units continue to remain exempt by staying below specific thresholds.
These provisions are acceptable.
b. Section XIX
    Section XIX establishes RACT requirements for emission points at
major sources of VOC and NOX in the DMNFR Area. We are
proposing approval of the renumbering in Section XIX.A from the May 10,
2019 submittal.\59\
---------------------------------------------------------------------------

    \59\ Sections XIX.A.-C. were originally submitted to EPA on May
31, 2017 and listed by name major sources of VOC and/or
NOX, required owners or operators of major sources to
submit RACT analyses to the Division by December 31, 2017, and set a
compliance date for turbines to meet emission limits and MRR
requirements. The EPA did not act on Section XIX with our April 6,
2018 (83 FR 14807) rulemaking. Colorado's May 10, 2019 submission
deletes Sections XIX.A-C, but since the provisions were never
approved into the SIP, we are taking no action on the deleted
portions of the submission.
---------------------------------------------------------------------------

4. May 10, 2019 SIP Submittal (Brewing Activities and Wood Furniture
Surface Coating Operations)
    The State's May 10, 2019 SIP submittal contains amendments to Reg.
7, Sections I, II, VI, VII, IX, X, XII, XIII, XVI, XVII, XVIII and XX.
The revisions include RACT requirements in Section XX for brewing
related activities at major VOC sources and RACT requirements in
Section IX for wood furniture surface coating operations. The submittal
also includes incorporation by reference dates to rules and reference
methods in Sections II, VI, VIII, IX, X, XII, XIII, XVI and XVII.
Lastly, the submittal contains SIP cleanup revisions in Section I, adds
a surface coating work practice in Section IX, and revises an exemption
in the industrial cleaning solvent requirements in Section X.
Typographical, grammatical and formatting corrections were also made.
We propose to approve these changes with Colorado's May 10, 2019
submittal, except for the revisions in Sections XII. and XVIII, which
will be acted on at a later date.
a. Sections II, VI, VIII, IX, X, XIII, XV, XVI, XVII, XIX
    The changes made in these sections include revisions to specific
rule or reference methods incorporated by reference to add applicable
citation dates. These changes strengthen the SIP. Other changes
throughout these sections are clerical in nature and do not affect the
substance of the requirements.
b. Section I
    Section I sets forth the applicability of Reg. 7. Sections I.B.2.f.
and I.B.2.g. were adopted by the Commission in 1990 and include one-
time reporting requirements concerning source emissions and RACT for
sources existing as of 1989. The provisions were not an ongoing
reporting requirement potentially necessary for monitoring compliance
with applicable emissions limits. Since these one-time requirements
have passed and Colorado's major stationary sources are now subject to
RACT requirements in Reg. 7, as adopted by the Commission through 2018,
the Commission removed provisions in I.B.2.f and I.B.2.g. Removal of
these provisions does not remove or modify any control measures, and
therefore does not affect emissions nor interfere with attainment or
reasonable further progress. Where information in the Sections I.B.2.f.
and I.B.2.g. reports informed RACT requirements under Section II.C.,
sources remain subject to applicable RACT requirements and any emission
reporting requirements as addressed by the emission statement rule last
approved by the EPA in 2015.\60\ The removal of the one-time reporting
requirements in I.B.2.f. and I.B.2.g. is reasonable and does not relax
the SIP or otherwise interfere with CAA requirements.
---------------------------------------------------------------------------

    \60\ See 80 FR 50205 (Aug. 19, 2015).
---------------------------------------------------------------------------

    Section I.E. deletes language regarding IBR materials available for
public inspection. The deletion is reasonable because the same language
is contained in the paragraph under ``Outline of Regulation'' and has
updated instructions on how to obtain materials electronically.
c. Section IX
    Section IX regulates VOC emissions and establishes RACT
requirements for surface coatings operations. Section IX.A.9. sets
forth required and prohibited acts for owners and operators of sources
of VOCs subject to Section IX. Based on an EPA recommendation, the
Commission adopted good air pollution control practices and coating
application methods in IX.A.9.a.(ii). We propose to find the provision
consistent with CTG recommendations and that it strengthens the SIP.
    Section IX.O. establishes new rules for limiting VOC emissions from
wood furniture coating operations. These emission reductions are
accomplished through limiting VOC content of coatings/materials used,
establishing requirements for application equipment, and work practices
and recordkeeping requirements.
    Section IX.O.2. provides that the rules in section IX.O. apply to
wood furniture manufacturing operations, including related cleaning
activities, that have the potential to emit 25 tons or more per year of
VOCs and that are located in the DMNFR Area. Section IX.O.3. sets forth
control requirements for owners and operators of wood manufacturing
operations. Requirements include VOC content limits for topcoats,
sealers, and strippable booth coatings. Section IX.O.4. adds work
practice requirements to minimize material usage and overspray, manage
cleanup of wastes, inspect for leaks and provide for the collection of
cleaning and washoff solvents and the use of conventional air spray
guns. Section IX.O.5. contains

reporting requirements to demonstrate compliance with the control
requirements in Section IX.O.\61\ A detailed evaluation of Section
IX.O. is in the TSD for this action. We propose to find that the
provisions in Section IX.O. are consistent with CAA requirements and
CTGs, and that they strengthen the SIP. For the reasons previously
explained, we propose to approve the changes in Section IX.
---------------------------------------------------------------------------

    \61\ Operators and owners of wood furniture manufacturing
operations subject to Section IX.O. are also subject to requirements
in Section IX.A.1.-IX.A.9.
---------------------------------------------------------------------------

d. Section X
    As previously discussed, Section X. regulates VOC emissions from
the use of cleaning solvents. Section X.E.4. establishes exemptions
from the requirements in Section X.E. for industrial cleaning solvent
operations. The Commission removed the general exemption in X.E.4.a.(i)
and (ii) originally submitted on May 31, 2017 and revised the exemption
in X.E.4.a. to apply only to industrial cleaning solvent operations
that are subject to another federally enforceable section of Reg. 7
that establishes RACT. The provisions in X.E.4.a. are reasonable and
consistent with CAA requirements. We therefore propose to approve the
changes in this section.
e. Section XX
    Section XX regulates VOC emissions from major source brewery and
brewery-related operations. Section XX.A. establishes new rules for
limiting emissions from breweries and brewery-related operations at
major sources of VOCs as of June 3, 2016. These reductions are
accomplished through process line emission limits, packaging operations
work practices, wastewater management and treatment and recordkeeping
requirements.
    Section XX applies to owners or operators of breweries that existed
at major sources of VOC in the DMNFR Area as of July 3, 2016. A
brewery, as defined in Section XX.A.3.a., includes brewhouse,
fermentation, aging and packaging operations. Brewery-related
operations include operations that support the production of malt
beverages such as wastewater management, container manufacturing and
ethanol distillation. Section XX.A.4. sets forth emissions limitations
of 6 percent process loss across all packaging operations in a calendar
month and 4 percent process loss on a 12-month rolling average during
packaging operations. Section XX.A.5. establishes packaging operation
work practices including performance metrics to reduce product loss,
operator training and packaging equipment to reduce container breakage
and product loss. Section XX.A.6. includes requirements for wastewater
management and treatment for land application of wastewater. Section
XX.A.7. requires owners or operators to keep records of production,
pollution prevention activities and wastewater to demonstrate
compliance with the operational requirements. A detailed evaluation of
Section XX.A. is in the TSD for this action. We propose to find that
the provisions in Section XX.A. are consistent with CAA and RACT
requirements, and that they strengthen the SIP.
    For the reasons previously explained, we propose to approve the
changes in Section XX.A.

VII. Proposed Action

    For the reasons expressed above, the EPA proposes to approve
revisions to Sections I, II, III, V, VI, VII, VIII, IX, X, XI, XIII,
XIV, XV, XVI, XVII, XIX and XX of Reg. 7 from the State's May 31, 2017,
May 14, 2018 and May 10, 2019 submittals as shown in Table 4, except
for those revisions we are not acting on as represented in Table 5. We
are proposing to approve Colorado's determination that the above rules
constitute RACT for the specific categories addressed in Tables 1 and
2, except for aerospace, for which we are proposing conditional
approval.
    Finally, the EPA proposes to correct regulatory text and IBR
published in the Federal Register on July 3, 2018.\62\
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    \62\ 83 FR 31068.
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    A comprehensive summary of the revisions in Colorado's Reg. 7
organized by EPA's proposed rule action, reason for proposed ``no
action'' and submittal date are provided in Tables 4 and 5.

 Table 4--List of Colorado Revisions to Reg. 7 That the EPA Proposes To
                                 Approve

     Revised Sections in May 31, 2017, May 14, 2018 and May 10, 2019
                    Submittals Proposed for Approval

May 31, 2017 submittal:
    X., X.A.1, X.A.2.b.-j., X.B.1.d.(ii), X.D.1.a.(i), X.E., X.E.1.,
     X.E.1.a.-c., X.E.2., X.E.2.a.-c., X.E.3., X.E.3.a., X.E.3.a.(i)-
     (iv), X.E.3.b., X.E.3.b.(i)-(iii), X.E.3.b.(iii)(A)-(B), X.E.4.,
     X.E.4.b., X.E.4.b.(i)-(xi), X.E.4.c., X.E.4.c.(i)-(ii), XVI.D.,
     XVI.D.2., XVI.D.2.a.-f.(ii), XVI.D.4., XVI.D.4.a.-b., XIX., XIX.D.,
     XIX.D.1-12., XIX.F. and G.
May 14, 2018 submittal:
    I.A.1.c., I.B.1.c., I.B.2.c., I.B.2.e., I.B.2.g., I.B.2.h., II.A.9.,
     II.A.10., II.D.2., III.C., V.B., VI.B.1.a., VI.B.1.b.,
     VI.B.2.a.(i)(C), VI.B.2.a.(i)(E), VI.B.2.a.(iii)(B),
     VI.B.2.a.(iii)(C), VI.B.2.c.(i)(B)(1), VI.B.2.c.(i)(B)(2),
     VI.B.2.c.(ii)(B), VI.B.2.c.(ii)(B)(1), VI.B.2.c.(ii)(C)(2),
     VI.B.2.c.(iii)(A), VI.B.2.c.(iii)(B)(1), VI.B.3.a., VI.B.3.b.,
     VI.B.3.b.(i), VI.B.3.h., VI.C.1., VI.C.2.a., VI.C.2.b., VI.C.2.c.,
     VI.C.3.a.-c., VI.C.3.c.(iii), VI.C.3.d.-f., VI.D.1.a.-b.,
     VI.D.2.a., VI.D.2.a.(i)-(ii), VI.D.2.a.(ii)(A)-(C), VI.D.2.b.(i),
     VI.D.2.b.(ii)(B), VI.D.3.a., VI.D.3.b., VI.D.4.a.-VI.D.4.c.,
     VI.D.4.c.(ii), VI.D.4.d.(i), VI.D.4.d.(iv), VI.D.4.e., VII.A.2.,
     VII.B.-C., VIII.A.2.a.(i)-(iii), VIII.A.2.a.(iii)(A), VIII.B.6.,
     VIII.C.1., VIII.C.1.b., VIII.C.2.a.(i)-(v), VIII.C.2.a.(vi)(A)-(B),
     VIII.C.2.c.(iii), VIII.C.4.a.(i)(A), VIII.C.4.a.(i)(A)(6),
     VIII.C.4.a.(i)(B), VIII.C.4.a.(i)(E), VIII.C.4.a.(ii)-(iii),
     VIII.C.4.b.(i)(J), VIII.C.4.c.(ii), IX.A.3.c.-e., IX.A.5.,
     IX.A.5.a.-d., IX.A.5.e., IX.A.6.a.-b., IX.A.8.b., IX.A.9.a.(1),
     IX.A.10.b., IX.A.11., IX.A.12.a., IX.A.12.a.(iv), IX.A.12.a.(vi),
     IX.A.12.a.(ix), IX.A.12.a.(x), IX.B.2.-5., IX.C.2., IX.D.2.,
     IX.E.2., IX.F.2., IX.G.2., IX.H.1.b., IX.H.2., IX.I.2., IX.J.1.a.,
     IX.J.2., IX.K.1., IX.K.2., IX.L.1.a., IX.L.1.b.(i)-(ii), IX.L.1.c.,
     IX.L.2.a.-c., IX.L.2.c.(iii)-(vi), IX.M.2., IX.M.3.a.,
     IX.N.3.a.(i)(A), IX.N.4.a.(ii), IX.N.5.-6., X.A.5., X.B.1.d.(ii),
     X.C.1.c.(i), X.C.2.d., X.E.3.b.(i), X.E.4.a.(i), XI.A.1., XI.B.3.,
     XI.C., XIII.A.1.a, XIII.A.3.a.(iii), XIII.A.3.a.(v)-(vi),
     XIII.A.3.c.-d., XIII.A.4., XIII.B.5.a.-b., XIII.B.5.c., XIV.C.1.,
     XV.B.1.d., XV.B.2.a., XVI.C., XVI.C.1., XVI.C.3.-4.,
     XVII.E.3.a.(i), XVII.E.3.a.(i)(A)-(C).
May 10, 2019 submittal--RACT for combustion sources:
    XVI., XVI.D., XVI.D.1.-XVI.D.4.a.(ii), XVI.4.b.(ii)-(iii),
     XVI.D.4.c., XVI.D.4.e.-XVI.D.5.a.(iv), XVI.D.6. (renumbering),
     XVI.D.6.a., XVI.D.6.b.-XVI.D.6.b.(vi)(B) (renumbering), XVI.D.6.c.,
     XVI.D.6.c.(i)-(ii) (renumbering), XVI.D.7.-XVI.D.8.b.(i), XIX.A.
     (renumbering).
May 10, 2019 submittal--RACT for brewing related activities and wood
 furniture surface coating operations:
    I.B.2.f.-g., I.E., II.A.17., VI.B.2.a.(i)(D), VI.B.3.i., VI.C.2.d.-
     e., VI.D.3.c., VI.D.4.d.(v), VIII.A.2.a.(iii)(B), VIII.B.7.,
     VIII.C.3., IX.A.1., IX.A.3.a., IX.A.9.a.(i), IX.A.9.a.(ii),
     IX.A.10.b., IX.A.11., IX.L.2.c.(vi), IX.N.7., IX.O.-IX.O.5.a.(v),
     X.D.2.a., X.E.3.b.(iii)(A)-(B), X.E.4.a., X.E.4.c.-(ii),
     XIII.B.5.c.(iii)(A)-(B), XV.B.1.b., XVI.D.6.b.(vi)(A),
     XVI.D.6.c.(ii), XVI.D.7.f.(iii), XVII.E.3.a.(i)(B), XIX.B.-C.
     (renumbering), XX.-XX.A.7.c.

            Table 5--List of Colorado Revisions to Reg. 7 That EPA Is Proposing To Take No Action on
----------------------------------------------------------------------------------------------------------------
                                                                       Reason for proposed ``No Action''
                                                              --------------------------------------------------
                       Revised section                          Superseded by    Revision to be   Revision never
                                                                 May 10, 2019    made in future   approved into
                                                                  submittal        rulemaking        the SIP
----------------------------------------------------------------------------------------------------------------
May 31, 2017 submittal:
    X.E.4.a..................................................               X   ...............  ...............
    X.E.4.a.(i)-(ii).........................................               X   ...............  ...............
    XVI.D.1..................................................               X   ...............  ...............
    XVI.D.1.A.-e.............................................               X   ...............  ...............
    XVI.D.3..................................................               X   ...............  ...............
    XVI.D.3.a.-c.............................................               X   ...............  ...............
    XV.I.D.4.c...............................................               X   ...............  ...............
    XIX.A.-C.................................................               X   ...............  ...............
    XIX.E....................................................               X   ...............  ...............
May 14, 2018 submittal:
    II.B.....................................................  ...............               X   ...............
    Section XII..............................................  ...............               X   ...............
    XVI.D.2.a.(iv)...........................................               X   ...............  ...............
    XVI.D.3.a.(ii)-(iii).....................................               X   ...............  ...............
    XVI.D.4..................................................               X   ...............  ...............
    Section XVIII............................................  ...............               X   ...............
May 10, 2019 submittal--RACT for combustion sources:
    XVI.D.4.b.(i)............................................  ...............               X   ...............
    XVI.D.4.d................................................  ...............               X   ...............
May 10, 2019 submittal--RACT for brewing related activities
 and wood furniture surface coating operations:
    X.E.4.a.(i)-(ii).........................................  ...............  ...............               X
    XIX.B....................................................  ...............  ...............               X
    Section XII..............................................  ...............               X   ...............
    Section XVIII............................................  ...............               X   ...............
----------------------------------------------------------------------------------------------------------------

VIII. Incorporation by Reference

    In this document, the EPA is proposing to include regulatory text
in an EPA final rule that includes incorporation by reference. In
accordance with requirements of 1 CFR 51.5, the EPA is proposing to
incorporate by reference Colorado AQCC regulation 7 pertaining to the
control of ozone via ozone precursors and control of hydrocarbons vial
oil and gas emissions discussed in section VI. of this preamble. The
EPA has made, and will continue to make, these materials generally
available through www.regulations.gov and at the EPA Region 8 Office
(please contact the person identified in the FOR FURTHER INFORMATION
CONTACT section of this preamble for more information).

IX. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submittal 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 submittals, the EPA's role is to approve state choices,
provided that they meet the criteria of the CAA. 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 action:
     Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866;
     Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
     Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would be inconsistent
with the CAA; and
     Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).

In addition, the SIP is not approved to apply on any Indian reservation
land or in any other area where EPA or an Indian tribe has demonstrated
that a tribe has jurisdiction. In those areas of Indian country, the
proposed rule does not have tribal implications and will not impose
substantial direct costs on tribal governments or preempt tribal law as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Carbon monoxide,
Greenhouse gases, Incorporation by reference, Intergovernmental
relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting
and

recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: September 4, 2020.
Gregory Sopkin,
Regional Administrator, EPA Region 8.
[FR Doc. 2020-20099 Filed 10-5-20; 8:45 am]
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