[Federal Register Volume 82, Number 158 (Thursday, August 17, 2017)]
[Proposed Rules]
[Pages 39083-39090]
[FR Doc No: 2017-17345]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2017-0359; FRL-9966-48-Region 4]

Air Plan Approval; South Carolina: Minor Source Permit Program
Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to
approve changes to South Carolina's State Implementation Plan (SIP) to
revise minor new source review (NSR) regulations. EPA is proposing to
approve portions of SIP revisions modifying these regulations as
submitted by the State of South Carolina, through the South Carolina
Department of Health and Environmental Control (SC DHEC), on the
following dates: October 1, 2007, July 18, 2011, June 17, 2013, August
8, 2014, January 20, 2016, and July 27, 2016. This action is being
proposed pursuant to the Clean Air Act (CAA or Act).

DATES: Comments must be received on or before September 18, 2017.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2017-0359 at http://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. 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. 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.

FOR FURTHER INFORMATION CONTACT: D. Brad Akers, Air Regulatory
Management Section, Air Planning and Implementation Branch, Air,
Pesticides and Toxics Management Division, U.S. Environmental
Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia
30303-8960. Mr. Akers can be reached via telephone at<PHONE_NUMBER> or
via electronic mail at<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. What action is EPA proposing?

    On October 1, 2007, July 18, 2011, June 17, 2013, August 8, 2014,
January 20, 2016, and July 27, 2016, SC DHEC submitted SIP revisions to
EPA for approval that involve changes to South Carolina's minor source
permitting regulations to clarify and streamline the State's federally-
approved preconstruction and operating permitting program. This program
requires minor stationary sources planning to construct or modify
sources of air pollutants to first obtain a construction permit and to
obtain and maintain operating permits in accordance with the South
Carolina Code of Regulations Annotated (S.C. Code Ann. Regs.) at
Regulation 61-62.1, Section II--``Permit Requirements.'' The portion of
the SIP-approved permitting program covering construction permits is
generally referred to as the minor source permitting program or the
minor NSR program to distinguish it from additional permitting
requirements for major sources of air pollutants.\1\ The portion of the
SIP-approved permitting program covering minor source operating permits
is referred to as the federally enforceable state operating permit
(FESOP) program. The changes made in these submittals clarify the
applicability, streamline the permitting process, provide more options
for the minor source permitting program, and generally reduce the
overall burden on the state permitting program and the regulated
community. The changes addressed in this proposed rulemaking also
correct typographical errors, make internal references consistent, and
recodify sections of the existing rules. In this action, EPA is
proposing to approve certain portions of these SIP submissions that
make changes to South Carolina's minor NSR regulations and FESOP
requirements.
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    \1\ EPA's regulations governing the implementation of NSR
permitting programs are contained in 40 CFR 51.160-.166; 52.21, .24;
and part 51, Appendix S. The CAA NSR program is composed of three
separate programs: prevention of significant deterioration (PSD),
nonattainment new source review (NNSR), and Minor NSR. PSD is
established in part C of title I of the CAA and applies to major
stationary sources in areas that meet the national ambient air
quality standards (NAAQS)--``attainment areas''--as well as areas
where there is insufficient information to determine if the area
meets the NAAQS--``unclassifiable areas.'' The NNSR program is
established in part D of title I of the CAA and applies to major
stationary sources in areas that are not in attainment of the
NAAQS--``nonattainment areas.'' The Minor NSR program applies to
stationary sources that do not require PSD or NNSR permits.
Together, these programs are referred to as the NSR programs.
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    EPA is not acting on a portion of the revisions to Regulation 61-
62.1, Section II--``Permit Requirements.'' Specifically, EPA is not
acting on the renumbering and minor administrative language changes to
paragraph G.6.--``Emergency Provisions,'' in the October 1, 2007,
submittal, nor the minor additional language changes to this portion of
the minor source permitting regulations included in the August 8, 2014,
submittal.\2\
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    \2\ In this action, EPA is not proposing to approve or
disapprove revisions to any existing emission limitations that apply
during start up, shut down and malfunction events.
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    At this time, EPA is not acting on the following changes included
in the October 1, 2007, submittal: Regulation 61-62.5, Standard No. 4--
``Emissions from Process Industries''; and Regulation 61-62.5, Standard
No. 5.2--``Control of Oxides of Nitrogen (NOX).''
    EPA is also not acting on changes in the July 18, 2011, submittal
to the following regulations in South Carolina's SIP: Regulation 61-
62.1, Section I--``Definitions''; Regulation 61-62.3--``Air Pollution
Episodes''; Regulation 61-62.5, Standard No. 1--``Emissions from Fuel
Burning Operations''; Regulation 61-62.5, Standard No. 4--``Emissions
from Process Industries''; Regulation 61-62.5, Standard No. 6--
``Alternative Emission Limitation Options (Bubble)''; Regulation 61-
62.5, Standard No. 7--``Prevention of Significant Deterioration''; and
Regulation 61-62.5, Standard No. 7.1--``Nonattainment New Source
Review.'' EPA approved the changes to Regulation 61-62.5, Standard No.
2--``Ambient Air Quality Standards,'' included in the July 18, 2011,
submittal, on April 3, 2013 (78 FR 19994).
    EPA is not acting on the changes included in the June 17, 2013,
submittal to the following regulations: Regulation 61-62.1, Section I--
``Definitions''; Regulation 61-62.1, Section IV--``Source Tests'';
Regulation 61-62.3--``Air Pollution Episodes''; Regulation 61-62.5,
Standard No. 4--``Emissions from Process Industries''; and

Regulation 61-62.5, Standard No. 5--``Volatile Organic Compounds.''
    Additionally, EPA is not acting on the changes included in the
August 8, 2014, submittal to the following regulations: Regulation 61-
62.1, Section I--``Definitions''; Regulation 61-62.1, Section IV--
``Source Tests''; Regulation 61-62.1, Section V--``Credible Evidence'';
Regulation 61-62.5, Standard No. 1--``Emissions from Fuel Burning
Equipment''; and Regulation 61-62.5, Standard No. 4--``Emissions from
Process Industries.'' EPA approved the changes to Regulation 61-62.1,
Section III--``Emissions Inventory and Emissions Statement,'' included
in the August 8, 2014, submittal, on June 12, 2015 (80 FR 33413) and
May 31, 2017 (82 FR 24851).
    EPA is also not acting on the changes included in the January 20,
2016, submittal to the following regulations: Regulation 61-62.5,
Standard No. 5--``Volatile Organic Compounds''; Regulation 61-62.5,
Standard No. 7.1--``Nonattainment New Source Review''; and Regulation
61-62.6--``Control of Fugitive Particulate Matter.''
    Finally, EPA is not acting on the changes included in the July 27,
2016, submittal to the following regulations: Regulation 61-62.1,
Section I--``Definitions''; Regulation 61-62.5, Standard No. 4--
``Emissions from Process Industries''; and Regulation 61-62.5, Standard
No. 5.2--``Control of Oxides of Nitrogen (NOX).'' EPA will
address these remaining changes to the South Carolina SIP in separate
actions.

II. Analysis of State's Submittal

A. Overview of Changes to Section II--``Permit Requirements''

    South Carolina has a SIP-approved minor source permitting program
at Regulation 61-62.1, Section II--``Permit Requirements.'' These
regulations include requirements for obtaining preconstruction and
operating permits for different types of minor sources. The program
covers ``true minor'' sources, which have the potential to emit (PTE)
of certain pollutants below major sources thresholds for new sources
and modifications. The SIP-approved minor source permitting program
also includes provisions for issuing permits that establish federally
enforceable emission limits to restrict the PTE of certain pollutants
below major source and major modification applicability thresholds:
``synthetic minor'' permits establish these limits for sources
obtaining construction permits, and ``conditional major'' permits
establish these emission limits in the corresponding operating permits.
South Carolina initially revised its minor NSR and FESOP rules in the
October 1, 2007, submittal to clarify and streamline requirements for
obtaining minor source construction and operating permits. The July 18,
2011, June 17, 2013, August 8, 2014, January 20, 2016, and July 27,
2017, submittals make other clarifying and administrative changes,
which are discussed for each subsection of the regulation below.
    EPA has reviewed the proposed changes to the minor source
construction and operating permitting regulations and preliminarily
finds them to be consistent with CAA sections 110(a)(2)(C) and 110(l),
EPA's minor NSR regulations found at 40 CFR 51.160--164, and the
criteria applicable to an approvable State FESOP program.

B. Analysis of Changes to Each Section

1. Section II.A.--``Construction Permits''
    Regulation 61-62.1, Section II.A--``Construction Permits''
specifies applicability and certain requirements for obtaining permits
for sources seeking to construct or modify emissions units. The October
1, 2007, submittal makes several changes to paragraph A. as follows:
(1) Adds allowed preconstruction activities at subparagraph A.1.d. for
true minor sources (i.e., minor sources that are not synthetic minor
sources); (2) adds the requirement that written notification be
provided to the Department marking the commencement of construction and
initial startup; (3) adds language requiring compliance with all terms,
limits, and conditions of Department-issued construction permits; (4)
adds time constraints for the validity of issued construction permits;
and (5) removes the descriptions of permit application requirements
from former paragraph A.2. to create a standalone subsection C. for
construction permits, and to detail more specific requirements for
other types of permits in other paragraphs.
    The July 18, 2011, submittal makes subsequent clarifying and
administrative changes to Section II.A., consolidating former
subparagraph A.1.a. and paragraph A.5. into an introductory paragraph
applicable to the entirety of Regulation 61-62.1, Section II. The
submittal also makes other renumbering and administrative edits to the
remaining subparagraphs.
    The language moved to an introductory paragraph for Section II
states: (1) The regulation will not supersede any state or federal
requirements nor special permit conditions unless it imposes a more
restrictive limit; (2) sources must comply with all terms, conditions,
and limitations of any permit issued by SC DHEC for sources or
activities at its facility; and (3) a source's permit status may change
if new regulatory requirements become applicable. The effect of moving
this language from subsection A. is to clarify that it is applicable to
all of Section II--meaning it applies to any types of permits issued by
the SC DHEC rather than only construction permits.
    The August 8, 2014, submittal further modifies Section II.A. by
making administrative edits and adding additional allowed
preconstruction activities for true minor sources at subparagraph
A.1.c, originally added in the October 1, 2007, submittal as
subparagraph A.1.d.
    The revision to subparagraph A.1.c.--added to the Regulation as
A.1.d. in the October 1, 2007, submittal, renumbered in the July 18,
2011, submittal, and updated in the August 8, 2014, submittal--allows
certain preconstruction activities prior to obtaining a final
construction permit, provided that specific conditions are met. EPA has
preliminarily determined that the preconstruction activities provision
is consistent with the requirements of CAA sections 110(a)(2)(C) and
110(l), and federal regulations at 40 CFR 51.160--51.164.
    Section 110(a)(2)(C) of the CAA requires that state SIPs include a
program for regulating the construction and modification of stationary
sources as necessary to ensure that the NAAQS are maintained. Federal
regulations at 40 CFR 51.160(b) require states to have legally
enforceable procedures to prevent construction or modification of a
source if it would violate any SIP control strategies or interfere with
attainment or maintenance of the NAAQS. Federal regulations limit the
types of allowed preconstruction activities for new and modified major
sources at 40 CFR 51.165(a)(1)(xv), 51.166(b)(11), and 52.21(b)(11)
and, as discussed below, South Carolina has adopted these provisions
into its SIP. But federal regulations do not impose a corresponding
limitation on preconstruction activities for minor sources. SC DHEC
provided additional clarification of its allowed minor source
preconstruction activities in a December 30, 2016, letter, which is
included in the Docket for this proposed action. In this letter, SC
DHEC first explains that ``[a]llowed preconstruction activities are
extremely limited in nature and do not include construction of that
actual process unit itself.'' The State also points to a requirement
under Section II.C.3.n. that sources applying for

construction permits demonstrate emissions will not interfere with
attainment or maintenance of the NAAQS. This requirement corresponds to
Section II.A.2. of the Regulation, which states that permits will not
be issued if emissions interfere with any state or federal standard.
    SC DHEC also points to its memorandum regarding allowed
preconstruction activities for major sources prior to obtaining PSD
permits.\3\ SC DHEC notes that its minor source preconstruction
activities provisions mirror the federal limits on major source
preconstruction activities, with the exception of one additional
activity: Allowing a facility to pour concrete foundation prior to
obtaining a construction permit. This activity is only prohibited for
major sources or major modifications prior to obtaining a permit in
accordance with the definition of ``begin actual construction'' in the
federal PSD regulations at 40 CFR 51.166(b)(11) and 52.21(b)(11), and
the NNSR regulations at 51.165(a)(1)(xv). As SC DHEC explains in its
clarifying letter, Section II.A.1.c.--which specifies which sources may
engage in preconstruction activities--explicitly excludes ``sources not
requesting to use federally enforceable construction permit conditions
to limit potential to emit, sources not subject to regulations with
more stringent start of construction limitations, or sources not
otherwise exempt from permit requirements.'' In other words, the
regulation excludes, among other sources, major sources subject to PSD
regulations or CAA section 112 requirements for hazardous air
pollutants (i.e., major sources and modifications).
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    \3\ This memorandum is also included in the Docket for this
proposed action.
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    In its December 30, 2016 letter, SC DHEC references Section
II.A.1.d., which clearly states that the owners or operators of any
sources that would not qualify for the issuance of a construction
permit assume the financial risk of commencing the preconstruction
activities listed in Section II.A.1.c. SC DHEC also notes that a source
could be subject to an enforcement action under Section II.F.2. and
Section II.J.1.e.--or subject to permit revocation under Section
II.J.1.b--if the source either did not comply with the regulations
during construction or would not have qualified for the preconstruction
activities undertaken.
    Because SC DHEC does not allow for the construction of process
units, there are no increased emissions associated with any of the
preconstruction activities allowed at Section II.A.1.c.i.-xvii. The
gatekeeping applicability language at Section II.A.1.c. and major NSR
applicability provisions at Regulation 61-62.5, Standard No. 7(a)(2)
and Standard No. 7.1(a)(1), provide that no major sources or
modifications may engage in the preconstruction activities allowed
under Section II.A.1.c.i.-xvii. Additionally, SC DHEC does not allow
synthetic minor sources to conduct the preconstruction activities.
Finally, SC DHEC has legally enforceable procedures to prevent
construction or modification of a source if it would violate SIP
control strategies or interfere with attainment or maintenance of the
NAAQS, as required by 40 CFR 51.160(b).
    The changes to South Carolina's minor NSR program are not
inconsistent with the requirements of the CAA and EPA's regulations,
and are therefore approvable as part of the SIP. EPA is therefore
proposing to approve the aforementioned changes to subsection A. and
the introductory portion of Section II pursuant to the CAA and 40 CFR
51.160-164.
2. Section II.B.--``Exemptions From the Requirement To Obtain a
Construction Permit''
    Regulation 61-62.1, Section II.B.--``Exemptions from the
Requirement to Obtain a Construction Permit'' specifies which types of
minor sources are exempt from obtaining minor source construction
permits. The October 1, 2007, submittal makes several changes to
subsection II.B. as follows: (1) Renumbers existing Section II.F. to
Section II.B. and modifies the title to clarify that the paragraph
applies only to construction permits; (2) adds language specifying that
future source modifications or new regulatory requirements may trigger
the need to obtain a permit for exempted facilities; (3) clarifies that
the exemption for boilers and space heaters applies to those firing
virgin solid and liquid fuels; (4) adds an exemption for boilers and
space heaters firing only virgin gas fuels rated 10 million British
thermal units per hour or less; (5) modifies the number of hours for
testing and maintenance for exempted emergency generators; (6) modifies
subparagraph B.2.h. to exempt additional sources with emissions less
than the threshold of 1 pound per hour (lb/hr) PTE of sulfur dioxide,
nitrogen oxides, and carbon monoxide; (7) adds the requirement for SC
DHEC to periodically publish a list of sources exempted from the
construction permit requirement under subparagraphs B.2.a.-g.--and any
other sources determined to qualify for permit exemptions based on
subparagraph B.2.h.--in the South Carolina State Register; (8) adds
procedures for sources requesting exemption from obtaining a
construction permit under paragraph B.2. or paragraph B.4.; (9) adds
paragraph B.6. to provide that exemptions under Section II.B. do not
relieve the owner or operator of any source from any obligation to
comply with any other applicable requirements; and (10) makes other
administrative changes and adds references throughout subsection B.
    The July 18, 2011, submittal makes subsequent revisions to clarify
requirements and qualifications at Section II.B., as follows: (1) Adds
language to subparagraph B.2.h. to require that emissions calculations
or other information necessary to demonstrate a source qualifies for
the exemption must be kept on site and provided to SC DHEC upon
request; (2) revises language in paragraph B.3. to clarify that source
types which are added to the list of exempted sources will be
determined not to interfere with attainment or maintenance of any state
or federal standard; (3) adds language stating that SC DHEC reserves
the right to require a construction permit on a case-by-case basis, and
that case-by-case determinations will consider, but not be limited to,
``the nature and amount of the pollutants, location, proximity to
residences and commercial establishments, etc.''; and (4) makes
administrative edits to existing language.
    Finally, the August 8, 2014, submittal makes additional changes to
paragraph II.B., including: (1) Administrative edits to the title of
the paragraph and to references and subparagraphs throughout; (2)
revises the PTE criteria in subparagraph B.2.h. to a 5 ton per year
(tpy) threshold rather than 1 lb/hr, and adds language to state that
sources with higher PTE may be exempted under this subparagraph if they
demonstrate that they are not subject to any applicable state or
federal limits or requirements; (3) amends paragraph B.3. to include
language asserting that SC DHEC may develop emission thresholds for
exemption that are determined will not interfere with attainment or
maintenance of state or federal standards to include in the list
maintained pursuant to this paragraph, and that SC DHEC could be
petitioned to consider adding additional sources to this list; and (4)
adds paragraph B.5. stating that sources of volatile organic compounds
(VOCs) with a PTE greater than the emission threshold listed in
subparagraph B.2.h. may be exempted from the requirement to obtain a

construction permit on a case-by-case basis, and that exempt sources
may later be required to be included in construction or operating
permits.
    Section 110(a)(2)(C) of the CAA requires that SIPs include a
program for regulating the construction and modification of stationary
sources as necessary to ensure that the NAAQS are maintained. Federal
regulations at 40 CFR 51.160(e) require that states identify the types
and sizes of sources subject to review and the basis for determining
which sources are subject. Additionally, CAA section 110(l) provides
that EPA shall not approve a revision to a plan if the revision would
interfere with any applicable requirement concerning attainment and
reasonable further progress (as defined in CAA section 171), or any
other applicable requirement of the CAA. SC DHEC has determined that
specific sources listed at paragraphs B.1. and B.2. do not require
permits because their size is not such that they are expected to
interfere with attainment or maintenance of state or federal standards,
including reasonable further progress.
    SC DHEC's December 30, 2016, letter provides additional
clarification for certain changes made to Section II.B. Subparagraph
B.2.f. extends the testing and maintenance operation threshold for
exempting emergency generators from 250 hours to 500 hours per year. SC
DHEC considered CAA section 110(l), and asserts that the state expects
no increase in actual emissions as a result of raising this exemption
threshold. SC DHEC explains that the 500 hours per year threshold is
commonly used to determine the PTE for title V and other major source
applicability determinations, consistent with an EPA guidance
memorandum.\4\ These sources are still restricted to emergency
conditions, meaning that other types of non-emergency activities--such
as peak shaving--would not qualify for the exemption under paragraph
II.B. Additionally, SC DHEC points to applicable federal requirements
for emergency generators at 40 CFR part 63 at subpart ZZZZ and 40 CFR
part 60 at subparts IIII and JJJJ to restrict non-emergency use of
these sources to 100 hours per year. Therefore, this change to
subparagraph B.2.f. will not result in any real increase in emissions
and therefore will not affect the state's ability to attain or maintain
state or federal standards or reasonable further progress. The State
also has the discretion to define the scope of its minor NSR program
pursuant to 40 CFR 51.160(e).
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    \4\ Seitz, John S. ``Calculating Potential to Emit (PTE) for
Emergency Generators.'' Memorandum to Program Directors in EPA
Regional Offices, Office of Air Quality Planning and Standards,
Research Triangle Park, NC (September 6, 1995).
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    SC DHEC in its letter also addresses changes made to subparagraph
II.B.h. potentially allowing certain sources with PTE exceeding the
thresholds of this subparagraph to be exempt from the requirement to
obtain a construction permit. SC DHEC asserts that this provision is
primarily intended to apply to sources with PTE only slightly above the
thresholds in subparagraph II.B.h. SC DHEC notes the safeguards built
into the language that sources subject to any applicable requirements
are not exempt from obtaining construction permits. The letter then
steps through an example of the process that small sources of VOC
emissions would undergo, including an assessment of any potentially
applicable requirements related to NAAQS, toxics, or hazardous air
pollutants; consideration of the PTE relative to major source
thresholds; and any other special considerations. SC DHEC determines
the applicability of construction permits for these sources under close
scrutiny on a case-by-case basis. This process in determining which
types and sizes of sources need to undergo preconstruction review and
permitting, afforded the State pursuant 40 CFR 51.160(e), is sufficient
to protect the NAAQS and prevent interference with reasonable further
progress, consistent with CAA sections 110(a)(2)(C) and 110(l).
    SC DHEC's change to paragraph II.B.3. notes that SC DHEC may
develop emission thresholds for exemptions that are not determined not
to interfere with attainment or maintenance or any state or federal
standard. EPA understands this language to reflect SC DHEC's
flexibility for determining which types and sizes of sources need to
undergo preconstruction review and permitting pursuant 40 CFR
51.160(e), and understands that these thresholds would need to be in
the SIP, similar to Subparagraph II.B.h. The compiled list is available
on SC DHEC's Web site.\5\ EPA preliminarily agrees that SC DHEC clearly
lays out the types and sizes of sources of interest for preconstruction
review, and also the reasonable process by which case-by-case
determinations are made to exempt sources with emissions above the
thresholds in subparagraph B.2.h., but less than any thresholds for
other applicable requirements like major NSR. EPA also preliminarily
agrees that this portion of South Carolina's minor NSR program does not
interfere with attainment or maintenance of the NAAQS, reasonable
further progress, or other applicable CAA requirements. Therefore, we
are proposing to approve changes to the SIP made to Section II.B.
pursuant to CAA sections 110(a)(2)(C) and 110(l), as well as 40 CFR
51.160-164.
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    \5\ The latest compiled list of exempted sources was updated as
of December 2016: http://www.scdhec.gov/Environment/docs/NewExemptions.pdf.
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3. Section II.C.--``Construction Permit Applications''
    Regulation 61-62.1, Section II.C--``Construction Permit
Applications,'' specifies the requirements for sources applying for and
obtaining construction permits. The October 1, 2007, submittal makes
several changes to subsection C. as follows: (1) Renumbers former
paragraph A.2. to standalone subsection C and changes the title to
specify that the requirements apply to construction permit
applications; (2) makes administrative edits, including renumbering;
(3) adds paragraph C.3. to reference SC DHEC forms which were created
to ease the permit application process; and (4) renumbers former
subparagraphs B.2.a.-g. to C.3.a.-p., reformatting and clarifying what
information may be required in addition to the SC DHEC forms, including
more specific process, chemical, and emissions information used to
determine PTE, an air quality analysis demonstrating protection of the
NAAQS, and a regulatory applicability determination.
    The July 18, 2011, submittal further modifies Section II.C. at
subparagraphs C.3.c.-d. to make administrative edits. South Carolina's
August 8, 2014, submittal makes additional administrative and
clarifying edits. The January 20, 2016, submittal also makes minor
administrative edits. Finally, the July 27, 2016, submittal makes one
change to subparagraph C.2.m. to clarify that scale drawings of the
facility must include buildings that might affect dispersion of
emissions.
    EPA has reviewed the changes made to the construction permit
application requirements and is proposing to approve them into the SIP,
pursuant to CAA sections 110(a)(2)(C) and 110(l).
4. Section II.D.--``General Construction Permits''
    Regulation 61-62.1, Section II.D.--``General Construction Permits''
provides regulations by which SC DHEC can issue general construction
permits for similar sources. South Carolina's October 1, 2007,
submittal adds these provisions to the minor NSR program for
construction permits to facilitate the permitting process for similar
sources

qualifying for and applying for coverage under permits with general
terms and conditions. The purpose of this general permitting minor NSR
program is to protect the NAAQS while simplifying the permitting
process for similar sources. The general construction permits paragraph
provides for the following: (1) General permits will incorporate all
applicable requirements for construction of similar sources and
identify the criteria by which sources can qualify for the permit; (2)
sources can submit construction permit applications to SC DHEC that
include requests for coverage under the general permit, and sources
later determined not to qualify for the general permit are subject to
enforcement; (3) approval to operate under a permit is a final permit
action for the purposes of judicial review; (4) the permit application
can deviate from the provisions of Section II.C. if enough information
is included to determine the source's qualification for the general
permit; and (5) sources qualifying for general permits are able to
apply for individual construction permits in lieu of coverage under the
general permit.
    The August 8, 2014, submittal makes administrative and clarifying
edits to subsection II.D. throughout. EPA has reviewed the changes made
to the minor NSR permitting program and is proposing to approve them
into the SIP, pursuant to CAA sections 110(a)(2)(C) and 110(l).
6. Section II.E.--``Synthetic Minor Construction Permits''
    Regulation 61-62.1, Section II.E.--``Synthetic Minor Construction
Permits'' specifies requirements for obtaining construction permits
with federally enforceable emissions limits to restrict PTE for
sources. South Carolina's October 1, 2007, submittal revises the
paragraph for synthetic minor sources as follows: (1) Renumbers
subsection II.H. to subsection II.E.; (2) makes administrative and
clarifying amendments to the title and throughout the paragraph to
clearly indicate that this paragraph pertains to construction permits
and to update references; (3) removes former subparagraphs II.2.c.-f.
as these requirements are now redundant and covered by other portions
of subsection E. or Section II; (4) adds paragraph E.3. to list
required synthetic minor permit conditions; (5) adds administrative
language to make applications for general synthetic minor construction
permits consistent with other construction permit applications; and (6)
adds paragraph E.5. to list additional requirements for synthetic minor
construction permit applications relative to other minor construction
permit applications.
    The August 8, 2014, submittal makes changes to subsection II.E. to
update administrative language and references throughout the paragraph.
The July 27, 2016, submittal also makes administrative edits to
subparagraph E.2.b. EPA has reviewed the changes made to the
requirements covering synthetic minor construction permits and is
proposing to approve them into the SIP, pursuant to CAA sections
110(a)(2)(C) and 110(l), and 40 CFR 51.160-164.
7. Section II.F.--``Operating Permits''
    Regulation 61-62.1, Section II.F.--``Operating Permits'' specifies
requirements for obtaining minor source operating permits. South
Carolina's October 1, 2007, submittal makes several changes to
subsection II.F. to clarify and add requirements, including: (1)
Renumbering subsection II.B. to II.F.; (2) adding paragraph F.1. to
require sources to record the actual date of initial startup and submit
it to SC DHEC; (3) adding paragraph F.2. to require certification that
construction was completed in accordance with the specifications of the
construction permit, to require any variances from the construction
permit to be addressed, and to assert that construction variances which
would trigger new requirements will be considered construction without
a permit; (4) adding language to clarify that title V sources may
comply with the Section II.F operating permit requirements by
submitting a permit modification request under 61-62.70.7(e) ; (5)
adding language to clarify that the existing requirement to provide a
written request to SC DHEC for a new or revised operating permit
applies to minor sources and those major sources not yet covered by a
title V permit; (6) adding subparagraph F.3.c. to specify that the
written request for a new or revised operating permit must include a
list of sources put into operation and the actual initial startup dates
for those sources; (7) making other administrative edits throughout the
paragraph; and (8) moving paragraph B.2. regarding permit renewals to a
standalone subsection II.H.
    The August 8, 2014 and July 27, 2016, submittals make
administrative changes to Section II.F.--``Operating Permits.'' EPA has
reviewed the changes made to the existing SIP requirements for applying
for an operating permit and is proposing to approve them into the SIP,
pursuant to CAA sections 110(a)(2)(C) and 110(l).
38. Section II.G.--``Conditional Major Operating Permits''
    Regulation 61-62.1, Section II.G.--``Conditional Major Operating
Permits'' specifies requirements for obtaining operating permits with
federally enforceable emissions limits to restrict PTE for sources.
South Carolina's October 1, 2007, submittal makes several changes to
subsection II.G. to clarify applicability and requirements as follows:
(1) Adds language to specify that paragraph II.G. applies to sources
requesting federally enforceable limits to restrict PTE below major
source thresholds; (2) adds language to specify that sources which
received synthetic minor construction permits and that are not subject
to title V will receive conditional major operating permits; (3) adds
permit shield language to note that if the renewal request is submitted
pursuant to paragraph II.H., conditional major sources can operate
under the most recent conditional major permit until SC DHEC processes
the renewal request; (4) adds language to note that the written request
provided by new sources needs to include any additional information
specified in subparagraph G.5.; (5) adds language and clarifies
existing language to note that the permit conditions, including special
conditions to verify compliance with operational and emissions limits,
are located at subsection II.J.; (6) modifies existing language to
specify additional requirements for conditional major operating permit
applications only; (7) removes requirements pertaining to construction
permit application requirements because subsections II.C. and II.E.
otherwise cover these requirements; (8) removes requirements pertaining
to standard operating permit applications because those are otherwise
covered by subsection II.F.; (9) adds language to specify that the
general information requirements in construction permit applications at
paragraph C.3. also apply to conditional major operating permits; and
(10) makes other administrative language changes throughout the
paragraph.
    The July 18, 2011, August 8, 2014, and July 27, 2016, submittals
make additional administrative changes to subsection II.G. EPA has
reviewed the changes made to SC DHEC's conditional major source
program, which is a portion of the FESOP minor source program, and
agrees that the revisions made to subsection II.G. clarify the
requirements for obtaining conditional major operating permits.
Further, EPA has determined that the conditional operating permit
program remains consistent with the criteria for

approving FESOP programs.\6\ Therefore, EPA is proposing to approve
these changes into the SIP pursuant to CAA sections 110(a)(2)(C) and
110(l).
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    \6\ EPA approved SC DHEC's FESOP program on December 11, 1995
(60 FR 63434).
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9. Section II.H.--``Operating Permit Renewal Request''
    Regulation 61-62.1, Section II.H.--``Operating Permit Renewal
Request'' specifies requirements for renewing operating permits for
minor sources. South Carolina's October 1, 2007, submittal makes
several changes to subsection II.H. to clarify applicability and
requirements as follows: (1) Renumbers former paragraph B.2. to make a
standalone subsection at II.H.; (2) adds paragraph H.1. to clarify that
operating permits must be renewed through a written request; (3) adds
paragraph H.2. to clarify that subsection II.H does not apply to title
V sources; (4) adds language to specify that sources must submit permit
renewal requests no later than 90 days prior to expiration of the
existing operating permit; (5) revises language to expand the type of
information needed to verify special permit conditions; (6) adds
language to require more specific information in the renewal request,
including changes in the source information required for construction
permits under paragraph C.3.; and (7) makes administrative language
changes throughout the paragraph.
    The July 18, 2011, June 17, 2013, August 8, 2014, and July 27,
2016, submittals make several administrative edits and correct
typographical errors throughout subsection II.H. EPA has reviewed the
changes made to the operating permit renewal requirements and believes
these changes are more specific and help to ensure SC DHEC has the best
information possible when evaluating renewal requests. EPA has also
preliminarily determined that the changes will not interfere with
attainment or maintenance of the NAAQS, reasonable further progress, or
other applicable CAA requirements. EPA is therefore proposing to
approve these changes into the SIP, pursuant to CAA sections
110(a)(2)(C) and 110(l).
10. Section II.I.--``Registration Permits''
    Regulation 61-62.1, Section II.I.--``Registration Permits''
provides regulations by which SC DHEC can issue registration permits,
covering the construction and operation of similar sources. South
Carolina's October 1, 2007, submittal adds these provisions to the
minor source construction and operating permitting program to
facilitate the permitting process for similar true minor sources
qualifying for and applying for coverage permits for specific source
categories. The purpose of this registration permitting minor source
program is to protect the NAAQS while simplifying the permitting
process for similar true minor sources. The difference between
registration permits and general construction permits or general
operating permits is that this program develops permits for specific
source categories exclusively for true minor sources.
    The October 1, 2007, submittal provides the following requirements
for registration permits under paragraph II.I: (1) Registration permits
will be developed by SC DHEC and will specify all applicable
requirements for construction and operation of similar true minor
sources; (2) registration permits will be developed only for true minor
sources; (3) sources can submit applications for coverage by certifying
qualification for, and agreeing to the conditions of, registration
permits, and sources later determined not to qualify for the
registration permit are subject to enforcement; (4) approval to operate
under a permit is a final permit action for the purposes of judicial
review; and (5) sources will adhere to general requirements under
paragraph II.J.1., and any other special permit conditions necessary to
verify compliance with operational and emission limits.
    The July 18, 2011, submittal makes subsequent changes to subsection
II.I. as follows: (1) Makes administrative edits; (2) adds language to
assert that regardless of qualification for registration permits, SC
DHEC reserves the right to require construction and operating permits,
as determined on a case-by-case basis; and (3) changes language to
clarify that registration permits shall contain any applicable permit
conditions under subsection II.J., rather than all permit conditions
listed in paragraph II.J., as SC DHEC finds appropriate.
    The August 8, 2014, submittal includes other changes to paragraph
II.I., including administrative edits throughout and adding language to
assert that SC DHEC can reopen registration permits for cause or to
include new standards or regulations that become applicable during the
lifetime of the permit. The August 8, 2014, submittal also removes
language at subparagraph I.1.a. requiring SC DHEC to provide notice and
opportunity for public participation prior to developing new
registration permits. However, the State withdrew this change from
EPA's consideration in a letter dated August 7, 2017.\7\ In the letter,
SC DHEC explained that its intent in withdrawing the change was to
require the Department to comply with the public participation
procedures at subsection II.N. when developing registration permits.
---------------------------------------------------------------------------

    \7\ The August 7, 2017, letter has been included in the docket
for this action.
---------------------------------------------------------------------------

    EPA has reviewed the changes made to the registration permit
requirements, as clarified by the State's August 7, 2017, letter, and
is proposing to approve them into the SIP, pursuant to CAA sections
110(a)(2)(C) and 110(l), and 40 CFR part 51, subpart I.
11. Section II.J.--``Permit Conditions''
    Regulation 61-62.1, Section II.J.--``Permit Conditions'' specifies
required standard and special permit conditions. The October 1, 2007,
submittal combines the standard and special permit conditions into a
standalone section for required permit conditions. This submittal makes
the following changes at paragraph J.: (1) Renumbers former subsection
II.C. to II.J. and modifies the title to reflect that the subsection
applies to all permit types; (2) requires sources to submit reports as
specified in applicable permits, laws, regulations, or standards; (3)
adds language to assert that a source may be subject to enforcement if
it fails to construct in accordance with the application and any issued
construction permit, or constructs without applying for approval; (4)
adds language to clarify the time period over which construction
permits are valid; (5) renumbers paragraph G.4. to paragraph J.2. and
modifies the title to clarify that what follows are special permit
conditions; (6) adds language stating that SC DHEC will require special
permit conditions as it finds appropriate, such as operational limits
or reporting and recordkeeping requirements; (7) removes former
subparagraph G.4.g., which states conditions to limit PTE must be
federally enforceable, because the State otherwise imposes this
requirement for synthetic minor construction permits at subparagraph
E.3. and conditional major operating permits at subparagraph G.5.; and
(8) makes administrative language changes throughout subsection II.J.
    One change made to subparagraph J.1.d., formerly C.4., in the
October 1, 2007, submittal regards when emissions reports need to be
made. In the place of a specific quarterly timeframe, the change
directs sources to comply with reporting requirements derived from
applicable permit requirements, laws and regulations, or standards.
There are no specific reporting requirements for

minor sources specified in federal regulations at 40 CFR 51.160-164, so
these reporting schedules can be developed as SC DHEC deems
necessary.\8\ Moreover, subparagraph J.1.a. states that ``[n]o
applicable law, regulation or standard will be contravened.'' Thus, if
there is a prescriptive state or federal requirement for reporting of
emissions that applies to any of these minor sources, the permits will
set the necessary reporting schedule accordingly. Therefore, EPA has
determined that this change does not interfere with attainment or
maintenance of the NAAQS, reasonable further progress, or any other
applicable CAA requirements.
---------------------------------------------------------------------------

    \8\ 40 CFR 70.6 generally requires semiannual emissions and
compliance reporting.
---------------------------------------------------------------------------

    The July 18, 2011, submittal makes further revisions to subsection
II.J., including: (1) Adding language stating that false information or
misrepresentation in a permit application is grounds for permit
revocation; (2) adding language stating that the issued construction or
operating permit must be kept at the facility and that records must be
kept as prescribed on site for at least five years; and (3) making
administrative and clarifying edits. The August 8, 2014, submittal
makes additional administrative changes.
    EPA has reviewed the changes to standard and special permit
requirements for the minor source construction and operating permit
program and is proposing to approve them into the SIP pursuant to CAA
section 110(a)(2)(C) and 110(l).
12. Section II.K.--``Exceptions''
    Regulation 61-62.1, Section II.K.--``Exceptions'' sets forth
factors that SC DHEC shall consider in determining whether to impose
alternative emissions limits, compliance schedules, or other
restrictions. The October 1, 2007, submittal makes non-substantive
changes to this subsection, including renumbering this existing
subsection from II.D. to II.K., and making administrative language
changes. EPA is therefore proposing to approve the aforementioned
changes into the SIP pursuant to CAA sections 110(a)(2)(C) and 110(l).
13. Section II.M.--``Transfer of Ownership/Operation''
    Regulation 61-62.1, Section II.M.--``Transfer of Ownership/
Operation'' specifies procedures for owners or operators of sources to
undertake if the ownership or operation is transferred to another
party. The October 1, 2007, submittal makes minor changes to this
regulation to renumber existing subsection II.E. to subsection II.M.
and to add more specific requirements for the written request to
transfer ownership or operation of a source. The August 8, 2014,
submittal makes only administrative changes to language in this
subsection.
    EPA has reviewed the changes to this existing portion of the minor
source permitting regulations and is proposing to approve the
aforementioned changes into the SIP pursuant to CAA section
110(a)(2)(C) and 110(l).
14. Section II.N.--``Public Participation Procedures''
    Regulation 61-62.1, Section II.N.--``Public Participation
Procedures,'' specifies the public participation requirements for
sources applying for and obtaining federally enforceable minor source
construction and operating permits. The October 1, 2007, submittal
makes several changes to subsection N. as follows: (1) Renumbers
existing paragraph G.5. to create a standalone paragraph for public
participation and clarify that these procedures can apply to other
types of permit requests rather than only conditional major source
operating permits; (2) adds language providing SC DHEC with discretion
to require notice of permitting activity, even when not otherwise
required by the State's regulations; (3) adds language stating that SC
DHEC can use means other than publishing in newspapers, the State
Register, and mailing lists to notify the public of minor source
permitting; and (5) makes administrative language edits for
consistency.
    The July 18, 2011, submittal makes one clarifying edit to reflect
that an approved construction permit is required prior to the
commencement of construction. The August 8, 2014, submittal makes
administrative and clarifying edits to subsection II.N., including: (1)
Adding language to subparagraph N.1. to identify the SC DHEC Web site
as another method of notifying the public of permitting activity; (2)
reformatting and revising paragraph N.2. to list the required elements
of the public notice; (3) revising language to identify how SC DHEC
will address and record comments, and broadening the SC DHEC procedures
to note that the State will respond to all comments rather than only
those received in writing or at the public hearing; (4) removing
language requiring SC DEHC to respond to all comments in writing; and
(5) making administrative edits.
    The changes in the October 1, 2007, submittal to allow for other
methods of public notice, and in the August 8, 2014, submittal to
explicitly list the SC DHEC Web site as a possible method of public
notice are consistent with the minor source permitting regulations at
40 CFR 51.161. EPA has existing policy asserting that the public notice
requirement for minor source permitting activities at 40 CFR
51.161(b)(3) is media-neutral, meaning that the public notice
requirement can be met as long as the State interprets the method to be
``prominent advertising.'' \9\ SC DHEC can therefore make use of its
Web site, mailing lists, and other methods in lieu of publication in a
newspaper. The provisions at subsection II.N. pertain only to minor
sources, and any major source public notice requirements are contained
in the major source PSD, NNSR, and title V regulations.\10\
---------------------------------------------------------------------------

    \9\ McCabe, Janet, ``Minor New Source Review Program Public
Notice Requirements under 40 CFR 51.161(b)(3),'' Memorandum to
Regional Administrators, Office of Air and Radiation, Washington, DC
(April 17, 2012).
    \10\ EPA published a final rule on October 18, 2016 (81 FR
71613) amending the public notice requirements for major source
permitting programs to allow for other means of public notice,
including Web sites. This proposed rulemaking only deals with
changes to South Carolina's minor source permitting regulations.
---------------------------------------------------------------------------

    EPA has reviewed the public notice requirements and preliminarily
finds that the changes currently before the Agency are not inconsistent
with the CAA and EPA's implementing regulations, including the criteria
for approving FESOP programs. See 54 FR 27274 (June 28, 1989).
Therefore, EPA is proposing to approve the changes to the existing
public notice requirements for the minor NSR and FESOP programs,
pursuant to CAA section 110(a)(2)(C) and 40 CFR 51.160-164.
15. Section II.O.--``Inspection and Entry''
    Regulation 61-62.1, Section II.O.--``Inspection and Entry,''
specifies requirements to allow SC DHEC officials to enter and inspect
facilities. South Carolina's July 18, 2011, submittal adds these
provisions to the minor source construction and operating permitting
program to allow for verification of adherence to permit conditions.
The August 8, 2014, submittal makes one additional administrative
change to the introductory language at subsection II.O. The ability for
SC DHEC to enter and inspect facilities enables the State to oversee
the minor source permitting program, including assisting in potential
enforcement actions. EPA is therefore proposing to approve this
subsection

and its updated provisions into the SIP, pursuant to CAA section
110(a)(2)(C).

IV. Incorporation by Reference

    In this rule, EPA is proposing to include in a final EPA rule
regulatory text that includes incorporation by reference. In accordance
with the requirements of 1 CFR 51.5, EPA is proposing to incorporate by
reference South Carolina Regulation 61-62.1, Section II--``Permit
Requirements,'' effective June 24, 2016,\11\ which revises the
federally enforceable minor source construction and operating permit
program. EPA has made, and will continue to make, these materials
generally available through www.regulations.gov and/or at the EPA
Region 4 office (please contact the person identified in the FOR
FURTHER INFORMATION CONTACT section of this preamble for more
information).
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    \11\ See Section I and Section II.C. of this proposed rule for
additional detail.
---------------------------------------------------------------------------

V. Proposed Action

    EPA is proposing to approve portions of revisions to the South
Carolina SIP submitted by SC DHEC to EPA on October 1, 2007, July 18,
2011, June 17, 2013, August 8, 2014, January 20, 2016, and July 27,
2016. Specifically, EPA is proposing to approve the changes to S.C.
Code Ann. Regs. 61-62.1, Section II--``Permit Requirements,'' as
discussed above, pursuant to CAA section 110(a)(2)(C), section 110(l),
and 40 CFR 51.160--164.

VI. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the Act and applicable
Federal regulations. See 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 CAA. Accordingly, this
proposed 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 Orders 12866 (58
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     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 (Public Law 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, this proposed rule for South Carolina does not have Tribal
implications as specified by Executive Order 13175 (65 FR 67249,
November 9, 2000), because it does not have substantial direct effects
on an Indian Tribe. The Catawba Indian Nation Reservation is located
within the state of South Carolina. Pursuant to the Catawba Indian
Claims Settlement Act, S.C. Code Ann. 27-16-120, ``all state and local
environmental laws and regulations apply to the [Catawba Indian Nation]
and Reservation and are fully enforceable by all relevant state and
local agencies and authorities.'' EPA notes this action 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, Carbon monoxide,
Incorporation by reference, Lead, Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping requirements, Sulfur oxides,
Volatile organic compounds.

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

    Dated: August 7, 2017.
V. Anne Heard,
Acting Regional Administrator, Region 4.
[FR Doc. 2017-17345 Filed 8-16-17; 8:45 am]
 BILLING CODE 6560-50-P