program'' on July 1, 2011, then its permit application under the title
V operating permit program would typically have to be submitted no
later than July 1, 2012.
    There are also existing regulations relevant for the second
category of GHG transition issues, where sources currently subject to
title V have title V permit applications pending with a permitting
authority as of January 2, 2011. Where additional applicable
requirements become applicable to a source after it submits its
application, but prior to release of a draft permit, the source is
obligated to supplement its permit application. See 40 CFR 70.5(b);
71.5(b). Furthermore, title V permits are generally required to contain
provisions to assure compliance with all applicable requirements at the
time of permit issuance. See CAA section 504(a); 40 CFR 70.6(a)(1) and
71.6(a)(1). If a permitting authority determines that additional
information is necessary to evaluate or take final action on an
application (e.g., because of uncertainty over whether a draft permit
assures compliance with all applicable requirements), it may, and
should, request additional information from the source in writing and
set a reasonable deadline for a response. See 40 CFR 70.5(a)(2);
71.5(a)(2).
    Likewise, the existing title V regulations provide sufficient
transition for the third category of issues, where a source has
additional GHG-related applicable requirements (such as the terms of a
PSD permit) that must be incorporated into its existing title V permit.
Where a source is required to obtain a PSD permit, the source must
apply for a title V permit or permit revision within 12 months of
commencing operation or on or before such earlier date as the
permitting authority may establish (or prior to commencing operation if
an existing title V permit would prohibit the construction or change in
operation). See 40 CFR 70.5(a)(1)(ii); 71.5(a)(1)(ii); see also 40 CFR
70.7(d) and (e); 71.7(d) and (e) (permit modifications). In addition,
where a source becomes subject to additional applicable requirements,
the permitting authority is required to reopen the permit to add those
applicable requirements if the permit term has three or more years
remaining and the applicable requirements will be in effect prior to
the date the permit is due to expire. See 40 CFR 70.7(f)(1)(i);
71.7(f)(1)(i).
    Finally, EPA notes that the existing title V regulations require
sources to furnish permitting authorities, within a reasonable time,
any information the permitting authority may request in writing to
determine whether cause exists for modifying, revoking, and reissuing,
or terminating the permit, and for other reasons, and further provide
that permitting authorities shall reopen and revise permits if EPA or
the permitting authority determine that the permit must be revised or
revoked to assure compliance with applicable requirements. See 40 CFR
70.6(a)(6)(v); 71.6(a)(6)(v) and 70.7(f)(1)(iv); 71.7(f)(1)(iv).
    Thus, EPA believes that the existing title V regulations provide an
adequate regulatory framework for managing the transition to
incorporating GHG requirements in title V permits and additional
specific exemptions or transition rules for title V are not currently
warranted.

VI. What are the economic impacts of the final rule?

    This section of the preamble examines the economic impacts of the
final rule including the expected benefits and costs for affected
sources and permitting authorities. The final rule uses a phased-in
approach for requiring sources of GHG emissions to comply with title V
operating permit and PSD statutory requirements, essentially lifting
this burden for the phase-in period for a large number of smaller
sources of GHG. Thus, this rule provides regulatory relief rather than
regulatory requirements for these smaller GHG sources. For larger
sources of GHGs that will be required to obtain title V permits and/or
comply on PSD requirements, there are no direct economic burdens or
costs as a result of this final rule, because these requirements are
not imposed as a result of this rulemaking. Statutory requirements to
obtain a title V operating permit or to adhere to PSD requirements are
already mandated by the CAA and by existing rules, not by this rule.
Similarly, this rule will impose costs to society in the form of
foregone environmental benefits resulting from GHG emission reductions
that, absent this rule, might otherwise

have occurred at sources deferred from permitting during the phase-in
period.
    The RIA conducted for this final rule provides details of the
benefits or regulatory relief that smaller GHG sources will experience
in terms of costs avoided as a result of this final rule and the
potential for social costs in terms of foregone environmental benefits
during this 6-year period. Complete details of the RIA conducted for
this final rule may be found in the document ``Regulatory Impact
Analysis for the Final Prevention of Significant Deterioration and
Title V Greenhouse Gas Tailoring Rule,'' in the docket for this
rulemaking.
    This rulemaking provides permitting thresholds for sources of GHG
that exceed levels contained in the CAA, and these levels are phased-in
steps based upon application of the ``administrative necessity'' and
``absurd results'' doctrines as explained in section V.B. For Step 1,
which is effective from January 2, 2011, through June 30, 2011, only
sources required to undergo title V or PSD permitting based upon non-
GHG air pollutants are required to obtain an operating permit or PSD
permit to include GHG emissions (referred to as the ``anyway''
threshold). Step 2, effective from July 1, 2011, until such time as EPA
acts on a rule to amend it (which for reasons described previously, we
assume is June 30, 2013, for the purposes of this analysis), will phase
in title V permit requirements for larger sources emitting GHG above
100,000 tpy CO2e (if they do not already have one) and phase
in for such sources, PSD requirements when they are newly constructed
or modify in a way that increases emissions by more than a 75,000 tpy
CO2e significance level. Step 2 is referred to as the
100,000 tpy CO2e threshold. Thereafter, EPA makes an
enforceable commitment to consider a possible Step 3 to further lower
thresholds below 100,000 tpy CO2e and/or permanently exclude
some sources from the program(s), but only after a regulatory process
is conducted addressing ``administrative necessity'' and ``absurd
results'' considerations based upon the actual permitting experiences
in the first two steps of the phase-in. In addition, EPA provides a
deferral of permitting until we take required action in April 2016 for
sources and modifications that emit below 50,000 tpy CO2e.
The deferral will end when a required study is conducted of the
permitting process for sources of GHG and EPA acts, based on the study,
to promulgate a rule that describes the additional GHG permitting
requirements beyond 2016. In the 6 years following promulgation of this
rule, the EPA estimates that compared to baseline estimates that do not
include the effects of this rule, over six million sources of GHG
emissions in total will be allowed to continue to operate without a
title V operating permit. During this period, tens of thousands of new
sources or modifying sources each year will not be subject to PSD
requirements for GHG. For this large number of smaller sources, this
rule alleviates the regulatory burden associated with obtaining an
operating or PSD permit or complying with NSR BACT requirements.
Therefore, this final action may be considered beneficial to these
small sources because it provides relief from regulation that would
otherwise be required.
    This decision does potentially have environmental consequences in
the form of higher emissions during the 6-year period of time
(generally because emissions increases would have been lower if BACT
were applied). These consequences are limited due to the fact that
sources between 100/250 and 100,000 tpy CO2e account for an
estimated 11 percent of the six directly emitted GHG nationally from
industrial, commercial, and residential source categories, while
representing over 95 percent of the total number of sources potentially
requiring an operating or PSD permit for GHG under current permitting
thresholds in the CAA. Moreover, requiring such a large number of small
sources to obtain permits for the first time would overtax the
permitting authorities' abilities to process new permits and would
therefore interfere with any such benefits actually being achieved.
Moreover, reductions from these small sources will still be occurring,
notwithstanding the fact that permitting requirements would not apply
to them. These smaller sources of GHGs will be the focus of voluntary
emission reduction programs and energy efficiency measures that lead to
reductions in GHGs. We will also reevaluate this decision after a 6-
year period and complete a study of the implications for those sources
and permitting authorities of permitting smaller GHG sources beyond
2016.
    In reaching the preceding decisions for this final rule, we
carefully considered comments received on the Tailoring Rule proposal.
We received several comments specifically on our description of the
impacts of this rule. Most of these comments disagreed with our
assertion that the rule is a ``relief'' rule. Others assert that we
should have prepared a more comprehensive RIA than prepared for the
rule proposal. Those commenting contend: (1) We understated the burdens
of the rule while overstating its relief at proposal; (2) we
erroneously omitted the impacts for ``larger sources'' of GHGs from the
proposal RIA and should have recognized the burden to ``larger
sources'' due to other GHG actions; (3) the economic impacts the rule
will have on industry and the U.S. economy and society in general will
be burdensome, especially given the current state of the economy; and
(4) we need to propose a full RIA or a complete estimation of impacts
to comply with CAA section 307(d) and the APA.
    EPA has carefully considered the comments addressing the issue of
whether the Tailoring Rule is a regulatory ``relief rule,'' and we are
not persuaded that we erred in concluding that the effect of the
Tailoring Rule is to provide regulatory relief to a large number of
sources of GHG for a period of up to 6 years. This final rule will
provide relief from title V permitting to over 6 million sources of GHG
in this country. Likewise tens of thousands of sources potentially
subject to PSD permitting requirements annually for GHG will have
regulation postponed for a period of up to 6 years under this rule,
followed by an additional required rule addressing the period beyond 6
years. While larger sources of GHG may be required to obtain title V
permits or modify existing permits and to comply with PSD requirements,
these burdens result not from the Tailoring Rule but rather from the
CAA requirements to apply PSD and title V to each pollutant subject to
regulation, which are triggered when the LDVR takes effect. To clearly
illustrate this, consider what would occur if EPA did not complete the
Tailoring Rule. Sources would not be relieved of the requirement to
obtain permits addressing each pollutant subject to regulation when
they construct or modify, nor would they be relieved of their
obligation to obtain title V permits. Instead, these requirements would
simply apply to a much larger population of sources and modifications,
and would lead to the absurd results and severe impairment to program
implementation that this rule is designed to address.
    In response to comments asserting that the RIA completed for
proposal of this rulemaking: (1) Understated the burdens of the rule
and overstated the benefits, (2) did not fully recognize the rule will
be burdensome, especially given the current state of the economy; and
(3) does not consider a complete estimation of impacts to comply with
the APA and CAA section 307(d) and needs to correct flawed or erroneous

assumptions, EPA did make improvements and modifications to the RIA
completed for this final rule. Based upon comments, EPA modified
estimates of the number of sources affected at various threshold levels
upward. EPA also improved the burden estimates associated with
obtaining permits for sources and permitting authorities.
    After consideration of the burden imposed by the proposed rule with
these improved estimates for affected sources, the EPA modified the
steps of the phase-in period to include two initial steps, described in
section V, that are higher, and therefore cover fewer sources and are
less burdensome than the proposal threshold of 25,000 tpy
CO2e emissions. EPA also increased the threshold below which
permitting would not apply for 6 years from 25,000 to 50,000 tpy
CO2e. After the initial two step period, EPA has committed
to consider lower thresholds but only down to 50,000 tpy
CO2e, and only after a regulatory process that uses
information gathered on actual permitting activity during the first two
steps of the phase-in period. The RIA conducted for the final rule also
incorporates improvements in our estimates of the number of sources
affected at alternative thresholds and improved estimates of the costs
of obtaining permits by sources and processing permits by permitting
authorities. The EPA acknowledges that the regulatory relief associated
with the control costs due to BACT requirements for PSD new and
modifying sources is not included in the RIA for the final rule due to
the lack of sufficient data about the nature of those requirements.
However, it is the case that, as it relates to burden, those estimates
would simply increase the amount of regulatory relief associated with
this final rule.
    Finally, with regard to comments that the RIA should have been a
more comprehensive analysis to include the larger sources of GHG that
will be required to obtain permits when GHG are regulated, the EPA
maintains as previously explained that there are no direct economic
burdens or costs as a result of this rule for these sources.
Requirements for larger GHG sources to obtain title V or PSD permits
are already mandated by the Act and by existing rules and are not
imposed as a result of the Tailoring Rule. Thus the economic impacts
for larger sources of GHG do not occur because of this Tailoring Rule.
To include these larger sources in the RIA would actually be an
inaccurate assessment of how this rule affects sources and would ignore
the fact that this rule provides regulatory relief.

A. What entities are affected by this final rule?

    As previously stated, this final rule does not itself result in the
application of permitting requirements to any industrial, commercial,
or residential entities. Entities affected by this rule are those who
experience regulatory relief due to the higher thresholds and deferred
applicability set forth in this rule. This action increases the
threshold to obtain a title V and PSD permitting from statutory CAA
levels using a phased-in step process as previously discussed. As Table
VI-1 shows, this action lifts permitting requirements for over six
million potential title V sources in total and tens of thousands of
potential PSD new sources annually that would be otherwise required by
the CAA to obtain permits. Under Step 1, over six million title V
sources in total and approximately 20 thousand new PSD sources per year
will not be required to obtain permits. Under Step 2, requiring sources
over a 100,000 tpy CO2e to obtain a permit, over six million
title V sources in total and approximately 19.9 thousand new PSD
sources per year will obtain regulatory relief. While the threshold
approach differs for Steps 1 and 2 of the phase-in plan, the estimated
number of sources affected does not differ greatly as shown in Table
VI-1. Sectors experiencing this regulatory relief include electricity,
industrial, energy, waste treatment, agriculture, commercial and
residential.

              Table VI-1--Estimated Number of Affected Sources Experiencing Regulatory Relief 1, 2
----------------------------------------------------------------------------------------------------------------
                                                     Number of sources experiencing regulatory relief
                                         -----------------------------------------------------------------------
                 Sector                              Step 1 Anyway                    Step 2 100,000 tpy
                                         -----------------------------------------------------------------------
                                               Title V           New PSD           Title V           New PSD
----------------------------------------------------------------------------------------------------------------
Electricity.............................               285                93               285                33
Industrial..............................           170,910               604           170,654               599
Energy..................................             2,588                48             2,536                44
Waste Treatment.........................             3,358                 2             3,165                 1
Agriculture.............................            37,351               299            37,351               299
Commercial..............................         1,355,921            12,041         1,355,870            12,039
Residential.............................         4,535,500             6,915         4,535,500             6,915
                                         -----------------------------------------------------------------------
    Totals..............................         6,105,913            20,002         6,105,361            19,930
----------------------------------------------------------------------------------------------------------------
% Emissions Covered \3\.................                  13%
                                                          11%
----------------------------------------------------------------------------------------------------------------
Notes: (1) Number of sources is determined on a PTE basis. Estimates for title V are the total number of sources
  expected to experience regulatory relief. PSD sources are annual estimates of newly constructed facilities and
  do not include modifications at existing facilities that may also be subject to PSD requirements. (2) See
  appendices to ``Regulatory Impact Analysis of the Final Prevention of Significant Deterioration and Title V
  Greenhouse Gas Tailoring Rule'' for more details of how thresholds and sources affected are developed. (3)
  Percentage of emissions covered represent estimated actual emissions from sources expected to experience
  regulatory relief as a percentage of total stationary source GHG emissions.

B. What are the estimated annual benefits to sources due to regulatory
relief from the statutory requirements?

    EPA estimated the annual benefits (avoided costs) to sources of GHG
emissions and permitting authorities anticipated from this final rule.
In addition, an accounting of the benefits from this action as measured
by avoided permit processing costs for state, local, and tribal
permitting authorities is provided. These benefits or avoided costs
relate specifically to permit burden costs postponed for smaller
sources of GHG emissions otherwise required to obtain an operating
permit under title V or required to modify an existing permit to
address GHG

emissions. Avoided costs shown also include permit burdens for
additional PSD permits postponed for new or modifying smaller sources
of GHG, as well as the avoided costs to state, local and tribal
permitting authorities. We are providing an illustrative monetary
estimate of statutory permitting requirements to show the magnitude of
the savings that hypothetically result from this rulemaking. While we
believe it is impossible to implement these permit requirements by
January 2, 2011, for the reasons laid out in this preamble, it is
useful to understand the scale of what the burden may have been. For
sake of simplicity, we refer to this illustrative monetary estimate as
the monetized benefits of the regulatory relief presented by this
rulemaking or regulatory relief benefits for brevity.
    These benefit estimates do not consider avoided emission control
costs associated with PSD requirements for potential BACT requirements.
Estimates for BACT are unavailable at this time because of the
difficulty predicting the results of the BACT process as it would be
applied to new pollutants and classes of sources for which there is no
previous BACT experience on which to rely.
1. What are annual estimated benefits or avoided burden costs for title
V permits?
    Table VI-2 shows that the estimated annual title V benefits to
sources and to permitting authorities in terms of avoided information
collection cost resulting from this final action to be approximately
$70,535 million under Step 1 of the phase-in. These avoided costs
become $70,520 million annually under Step 2 of the phase-in. where
permitting is required for sources at or above the 100,000 tpy
CO2e threshold. Under the anyway threshold Step 1,
approximately $49,457 million in regulatory relief will accrue to
sources and approximately $21,078 million to permitting authorities
annually in the form of avoided permit processing costs. With the
100,000 tpy CO2e threshold for phase-in Step 2, these annual
regulatory relief benefits are expected to be quite similar at $49,447
million for sources of GHG emissions and $21,072 million for permitting
authorities. Industrial sources permitting costs are estimated to be
$46.4 thousand per permit for a new permit and $1.7 thousand for a
permit revision. The EPA estimates that over tens of thousands of
industrial sources per year will avoid incurring these permitting costs
under Steps 1 and 2 of the phase-in period. The cost for a permit for
new commercial and residential sources is estimated to be $23.2
thousand per permit with approximately 2 million of these permits
avoided annually.
    State, local, and tribal permitting authorities will also benefit
in terms of avoided permitting administrative costs of over $21 billion
as a result of the decisions final in this action. For industrial
sources, the cost for permitting authorities to process a new
industrial title V permit is approximately $19.7 thousand per permit
and $1.8 thousand for a permit revision. Similarly, permitting
authority avoided permit processing costs are approximately $9.8
thousand per permit for a new commercial or residential title V permit.
All estimates are stated in 2007 dollars.

                                Table VI-2--Annual Title V Regulatory Relief for Sources and Permitting Authorities 1, 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Step one anyway                Step two 100,000 tpy CO2e
                                                                 Cost per permit -----------------------------------------------------------------------
                           Activity                                  (2007$)          Number of       Avoided costs       Number of       Avoided costs
                                                                                permits      (millions 2007$)       permits      (millions 2007$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources:
    New Industrial............................................           $46,350            71,829            $3,329            71,657            $3,321
    New Commercial/Residential................................            23,175         1,985,948            46,024         1,985,930            46,024
    Permit revisions due to GHG...............................             1,677            61,836               104            60,921               102
                                                               -----------------------------------------------------------------------------------------
        Source Total..........................................  ................         2,119,613            49,457         2,118,508            49,447

Permitting Authority:
    New Industrial............................................            19,688            71,829             1,414            71,657             1,410
    New Commercial/Residential................................             9,844         1,985,948            19,550         1,985,930            19,550
    Permit revisions due to GHG...............................             1,840            61,836               114            60,921               112
                                                               -----------------------------------------------------------------------------------------
        Permitting Authority Total............................  ................         2,119,613            21,078         2,118,508            21,072
                                                               =========================================================================================
            Total Title V Regulatory Relief...................  ................  ................            70,535  ................            70,520
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Sums may not add due to rounding.
\1\ Annual title V avoided costs estimates represent information collection costs for one third of the total number of title V sources obtaining
  regulatory relief shown in Table VI-1 potentially requiring permits or permit revisions for GHG.
\2\ More details on these estimated regulatory relief benefits are available in the appendices to the ``Regulatory Impact Analysis for the Final
  Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule.''

2. What are annual benefits or avoided costs associated with NSR
permitting regulatory relief?
    Table VI-3 summarizes the estimated annual permit burden costs
avoided by sources and permitting authorities for PSD permitting due to
this Tailoring Rule. The benefits associated with avoided cost of
compliance for BACT for these sources is not included in these
estimates due to a lack of available data. The estimated avoided burden
or reporting and recordkeeping cost that would occur absent this rule
for new industrial sources to obtain permits is estimated to be $84.5
thousand for a modifying PSD industrial source and $59.2 thousand for a
modifying commercial or multi-family residential source. New PSD
sources will also be required to obtain a title V permit increasing
these costs to $130.9 thousand per permit for new industrial sources
and to $82.3 thousand per permit for new commercial or multi-family
residential sources. (Note the title V costs for these new PSD sources
have been included in title V estimates shown in Table VI-2.) New and
modifying sources avoid approximately $5.5 billion annually in PSD
permitting costs with this rule under the phase-in Step 1 threshold.
Under the phase-in Step 2, 100,000 tpy CO2e threshold and
75,000 tpy CO2e significance level, this avoided PSD
permitting cost estimate

becomes $5.4 billion annually. State, local, and tribal permitting
authorities are expected to avoid about $1.51 billion annually in
administrative expenditures associated with postponing PSD program
requirements for these GHG sources under Step 1 and $1.49 billion under
Step 2. All estimates are shown in 2007 dollars.

                                  Table VI-3--Annual PSD Regulatory Relief for Sources and Permitting Authorities 1, 2
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                Step one anyway            Step two 100,000 tpy  threshold,
                                                                                ------------------------------------      75,000 significance level
                           Activity                              Cost per permit                                     -----------------------------------
                                                                     (2007$)          Number of       Avoided costs       Number of       Avoided costs
                                                                                permits      (millions 2007$)       permits      (millions 2007$)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sources:
    New Industrial............................................           $84,530            26,089            $2,205            25,174            $2,128
    New Commercial/Residential................................            59,152            55,509             3,283            55,505             3,283
                                                               -----------------------------------------------------------------------------------------
        Source Total..........................................  ................            81,598             5,489            80,679             5,411

Permitting Authority:
    New Industrial............................................            23,243            26,089               606            25,174               585
    New Commercial/Residential................................            16,216            55,509               900            55,505               900
                                                               -----------------------------------------------------------------------------------------
        Permitting Authority Total............................  ................            81,598             1,506            80,679             1,485
                                                               =========================================================================================
            Total Title V Regulatory Relief...................  ................  ................             6,995  ................             6,896
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Sums may not add due to rounding.
\1\ All estimates are based upon PTE. Regulatory relief shown represents annual estimates of PSD permitting costs avoided under Steps 1 and 2 of the
  phase-in period.
\2\ More details on these estimated regulatory relief benefits are available in the appendices to the ``Regulatory Impact Analysis for the Final
  Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule.''

C. What are the economic impacts of this rulemaking?

    This final rulemaking does not impose economic burdens or costs on
any sources or permitting authorities, but should be viewed as
regulatory relief for smaller GHG emission sources and for permitting
authorities. Although sources above the thresholds set in this rule
will become subject to permitting on January 2, 2011, those impacts are
not attributable to the present rulemaking. Rather they are mandated by
the CAA and existing regulations and automatically take effect
independent of this action.
    In addition to considering the regulatory relief expected for
affected entities as a result of this final rule, the EPA considered
the impact of this rulemaking to small entities (small businesses,
governments and non-profit organizations) as required by the Regulatory
Flexibility Act (RFA) and the Small Business Regulatory Enforcement
Fairness Act (SBREFA). For informational purposes, the RIA includes the
SBA definition of small entities by industry categories for stationary
sources of GHG and potential regulatory relief from title V and NSR
permitting programs for small sources of GHG. Since this rule does not
impose regulatory requirements but rather lessens the regulatory burden
of the CAA requirements to smaller sources of GHG, no economic costs
are imposed upon small sources of GHG as a result of this final rule.
Rather this action provides regulatory relief for small sources. These
avoided costs or benefits accrue because small sources of GHG are not
required to obtain a title V permit and new or modifying small sources
of GHG are not required to meet PSD requirements. Some of the small
sources benefitting from this action are small entities, and these
entities will benefit from the regulatory relief finalized by this
rule. For discussion of comments received and EPA responses regarding
small entities impacts, see section VII of this preamble.

D. What are the costs of the final rule for society?

    EPA examined the social costs of this final rule. These social
costs represent the foregone environmental benefits that will occur as
a result of the regulatory relief offered to sources of GHG emissions.
This action is one of regulatory relief since it increases the
emissions thresholds for the title V and PSD programs, as they apply to
sources of GHG emissions, to levels above those in the CAA. In this
preamble section, the benefits or avoided regulatory costs of such
relief are discussed, but there is also a social cost imposed by such
relief, because this rule may forego some of the possible benefits
associated with title V and PSD programs for sources of GHG emissions
below the permitting thresholds established. These benefits are those
attributed to title V and PSD permitting programs in general. These
benefits are based upon the relevance of these programs to
policymaking, transparency issues, and market efficiency, and therefore
are very difficult to quantify and monetize. For title V, they include
the benefits of improved compliance with CAA requirements that stem
from (1) Improved clarity regarding applicability of requirements, (2)
discovery and required correction of noncompliance prior to receiving a
permit, (3) improving monitoring, recordkeeping, and reporting
concerning compliance status, (4) self-certification of compliance with
applicable requirements initially and annually, and prompt reporting of
deviations from permit requirements, (5) enhanced opportunity for the
public to understand and monitor sources' compliance obligations, and
(6) improved ability of EPA, permitting authorities, and the public to
enforce CAA requirements. However, it is important to remember that a
title V permit generally does not add new requirements for pollution
control itself, but rather collects all of a facility's applicable
requirements under the CAA in one permitting mechanism. Therefore, the
compliance benefits above are less when title V permits contains few or
no CAA applicable requirements. During the initial steps of the phase-
in plan established under this action, we expect that the vast majority
of sources excluded from title V would be sources that have no CAA
applicable

requirements for GHG emissions and few or no requirements for other
pollutants because their emissions of those pollutants are so small.
For this reason, while it is extremely difficult to measure the degree
of improved compliance, if any, that would be foregone, or to quantify
the social costs that would be imposed, we expect that they would be
small. We will be evaluating this issue further during subsequent
phases.
    For PSD, the primary social cost imposed by the Tailoring Rule
stems from the foregone benefit of applying BACT to the tens of
thousands of small new sources and modifications that will be below our
final thresholds during the first steps of the phase-in. This social
cost potentially weighs against the cost savings described previously
that stem (in part) from avoiding the administrative and control costs
of applying BACT to these sources. The BACT requirement assures that
new and modified sources, when they increase their emissions are using
state-of-the-art emission controls and affords the public an
opportunity to comment on the control decision. It does not prohibit
increases but it assures that such controls are applied. Delaying the
BACT requirement for numerous small sources during the first steps of
the phase-in for this final rule could allow increases from these
smaller sources that are greater than they would be if BACT were
applied. A detailed analysis of this difference is beyond the scope of
this rule, because we do not have detailed information on the universe
of these tens of thousands of small PSD actions, the candidate BACT
technologies for each of them, how permitting authorities would make
the BACT decisions, and how the BACT limit would compare to what would
otherwise be installed absent BACT.
    It is not possible at this time to quantify the social costs of
avoided BACT. However, we note that the universe of possible emissions
that would be regulated by sources excluded under the Tailoring Rule is
small compared to those that would remain subject to PSD. The sources
excluded in these first two steps of the phase-in plan of this action
comprise only 11 percent of total stationary source GHG emissions,
while 67 percent remain subject to regulation. Furthermore, we expect
the emissions differences due to BACT controls for such sources to be
relatively small due to the lack of available capture and control
technologies for GHG at such sources that are akin to those that exist
for conventional pollutants and sources, as well as the likelihood that
even in the absence of BACT such sources would already be installing
relatively efficient GHG technologies to save on fuel costs. Thus,
while potential benefits would be foregone by excluding smaller sources
from the permitting programs, these benefits are likely to be small.
Under the Tailoring Rule, we will be working during the 6-year period
to greatly improve our understanding of both the administrative costs
of regulating and the social costs of not regulating smaller sources
under PSD and title V, and we will be relying on that information to
support our future threshold analyses called for under the action.
    In reaching the decisions for this Tailoring Rule, the EPA
recognizes that GHG emissions can remain in the atmosphere for decades
to centuries, meaning that their concentrations become well-mixed
throughout the global atmosphere regardless of emission origin, and
their effects on climate are long lasting and significant. A detailed
explanation of climate change and its impact on health, society, and
the environment is included in EPA's TSD for the endangerment finding
action (Docket ID No. EPA-HQ-OAR-2009-0171). The EPA recognizes the
importance of reducing climate change emissions for all sources of GHG
emissions including those sources afforded regulatory relief in this
rule and plans to address potential emission reductions from these
small sources using voluntary and energy efficiency approaches.
Elsewhere, we have discussed EPA's interest in continuing to use
regulatory and/or non-regulatory tools for reducing emissions from
smaller GHG sources because we believe that these tools will likely
result in more efficient and cost-effective regulation than would case-
by-case permitting.

E. What are the net benefits of this final rule?

    The net benefits of this GHG tailoring rule represent the
difference between the benefits and costs of this rule to society. As
discussed in this preamble, this rule is one of regulatory relief and
the benefits to society are estimates the regulatory relief (avoided
permit burden costs) to sources and permitting authorities for Steps 1
and 2 of the phase-in period. The social costs of the rule are the
foregone environmental benefits in the form of potential GHG emission
reductions that could occur during the phase-in period and are
discussed qualitatively.
    This rulemaking provides regulatory relief for a phase-in period to
smaller sources of GHG by phasing in the statutory permitting threshold
at levels above statutory requirements. This final rule establishes
thresholds and PSD significance levels for Steps 1 and 2 of the phase-
in period (the 2.5 year period between January 2, 2011 and July 1,
2013), commits to considering a further Step 3, and indicates floor
title V and PSD threshold levels from July 1, 2013 through April 30,
2016. The net benefits of the final rule for Steps 1 and 2 are
$193,598+B-C million for the 2 and one-half year period where B denotes
the unquantified benefits and C the quantified costs of this final
rule. These unquantified benefits of this rule include the avoided PSD
BACT costs for new and modifying sources. The unquantified costs
previously discussed relate to the foregone environment benefits or GHG
emission reductions that might be possible during the 2.5 year Step 1
and 2 phase-in period. These estimates are subject to significant
uncertainties that are discussed at length in the Regulatory Impact
Analysis for the Prevention of Significant Deterioration and Title V
GHG Tailoring Rule contained in the docket to this final rule. All
dollar estimates shown are based upon 2007$.

 Table VI-4--Net Benefits of the Rule for Steps 1 and 2 of the Phase-in
                                 Period
------------------------------------------------------------------------
                                                     Final rule amounts
                                                     (millions of 2007$)
------------------------------------------------------------------------
Benefits--Regulatory Relief:
Sources
    Title V \1\...................................              $123,624
    PSD \2\.......................................               $13,567
                                                   ---------------------
        Total Source Regulatory Relief............              $137,190
Permitting Authority:

    Title V \1\...................................               $52,684
    PSD \2\.......................................                $3,724
        Total Permitting Authority................               $56,407
                                                   =====================
        Total Regulatory Relief...................            $193,598+B
Costs--Foregone GHG Emission Reductions
    Title V & PSD.................................                     C
Net Benefits \3\..................................          $193,598+B-C
------------------------------------------------------------------------
 Benefits represent regulatory relief for sources with the annual
  potential to emit below the thresholds shown.
 B--Unquantified benefits of the rule include regulatory relief from
  BACT requirements for PSD sources.
 C--Unquantified social costs of tailoring rule represents economic
  value of foregone environmental benefits (potential GHG emission
  reductions) during Step 1 and 2 of the phase-in period. Foregone GHG
  emission reductions are not known at this time.
\1\ Reflects estimates of regulatory relief or avoided permit burden
  costs for title V GHG sources and permitting authorities.
\2\ Shows estimates of regulatory relief or avoided permit burden costs
  for GHG PSD sources and permitting authorities.
\3\ Includes one-half year of Step 1 (anyway threshold), 2 years of Step
  2 (100,000 threshold).

VII. Comments on Statutory and Executive Order Reviews

    In this section, we provide responses to comments we received for
various Executive Orders.

A. Comments on Executive Order 12866--Regulatory Planning and Review

    At proposal, EPA prepared an analysis of the potential costs and
benefits associated with EPA's Tailoring Rule proposal in an RIA.
Several commenters state that EPA's failure to estimate the full costs
of the effects of its interpretation of PSD applicability in the
proposed Tailoring Rule violates Executive Order 12866. Some of these
commenters maintain that Executive Order 12866 directs EPA to submit to
the Office of Management and Budget (OMB) new significant regulations
under consideration by the EPA. These commenters assert that, in the
section 202 rule, EPA failed to analyze the effect on stationary
sources in the cost benefit analysis and there is no indication that
EPA included these impacts in its submission to OMB. According to the
commenters, in EPA's proposal for this rulemaking, EPA has similarly
failed to analyze the costs and benefits of triggering PSD for
stationary sources. The commenters assert that without this key
information, OMB could not fully review the impacts of the proposed
rule. The commenters believe that EPA's failure to account for known
costs that will occur as a direct result of the promulgation of the
proposed rule in conjunction with the section 202 rule violates several
applicable requirements of Executive Order 12866, including sections
6(B)(ii) and 6(C)(iii), which require assessments of the potential
costs and benefits of the regulatory action and ``reasonably feasible
alternatives to the planned regulation, identified by the Agencies or
the public * * *'' thereby violating both the APA and CAA section
307(d) because they deprive businesses and permitting authorities alike
of a meaningful opportunity to comment on the rule.
    The EPA has prepared a revised RIA assessing the benefits and costs
of the final Tailoring Rule to support this rulemaking in accordance
with Executive Order 12866, as was done with the proposal for this
rulemaking. Similarly, the RIA completed for this action is subject to
review by an Inter-agency review panel that includes OMB, as was the
case with the proposal RIA. Further, the RIA completed for this final
rule fully assesses the known benefits and costs associated with the
Tailoring Rule. This final rule is one of regulatory relief from
statutory requirements in which a large number of sources of GHGs will
be relieved of the burden of title V and PSD permitting for a period of
at least 6 years. This final rule will provide relief from title V
permitting to over 6 million sources of GHG in this country. Likewise
tens of thousands of sources potentially subject to PSD permitting
requirements for GHGs will have regulation postponed for a period of at
least 6 years. While larger sources of GHG may still be required to
obtain title V permits or modify existing permits and to comply with
PSD requirements, these burdens result from existing statutory
requirements, not from this final Tailoring Rule.

B. Comments on the Paperwork Reduction Act

    At proposal, we stated in the preamble that we did not believe that
the proposal would impose any new information collection burden. We
concluded that the proposed action would reduce costs incurred by
sources and permitting authorities relative to the costs that would be
incurred if EPA did not revise the rule and provided estimates of those
reduced costs. Further, we stated that, despite our estimated burden
reductions, it was unnecessary for us to submit a new ICR to the OMB
because the ICR contained in the existing regulations for PSD (see,
e.g., 40 CFR 52.21) and title V (see 40 CFR parts 70 and 71) had
already been approved under the provisions of the Paperwork Reduction
Act, 44 U.S.C. 3501 et seq. and was assigned OMB control number 2060-
0003 and OMB control number 2060-0336, respectively.
    However, several commenters disagree that it was unnecessary for us
to submit a new ICR for the proposed action. These commenters believe
that (1) prior approval of an ICR for the PSD and title V programs
ignores the fact that there would be an increase in the paperwork
burden as a result of applying PSD and title V permitting requirements;
and (2) unless EPA resubmits the information collection approval
request to OMB with a proper and fully-inclusive analysis, EPA will
lack authority to collect information from stationary sources for PSD
and title V GHG emissions permitting.
    As we stated in the proposal, this is a burden relief rule and as
such it does not impose any new requirements for the NSR or title V
programs that are not currently required. For that reason, we concluded
that for purposes of this rule it was unnecessary for us to submit a
new ICR to the OMB and that the ICR contained in the existing
regulations for PSD (see, e.g., 40 CFR 52.21) and title V (see 40 CFR
parts 70 and 71) that had already been approved under the provisions of
the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and was assigned
OMB control number 2060-0003 and OMB control number 2060-0336,
respectively, still applies.

    Nevertheless, we understand that once GHGs are regulated under the
PSD and title V programs, there might be an increase in the overall
paperwork burden for these programs. EPA will have to assess this
possible burden during the normal course of 3-year renewal ICR process.

C. Comments on the RFA

    At proposal, EPA certified that the proposed rule would not have a
significant impact on a substantial number of small entities and
therefore we are not obligated to convene a formal Small Business
Advocacy Review (SBAR) panel. This certification was based upon the
fact that the proposed action would relieve the regulatory burden
associated with the major PSD and title V operating permits programs
for new or modified major sources that emit GHGs, including small
businesses. Nevertheless, EPA was aware at proposal that many small
entities would be interested in the various GHG rulemakings currently
under development and might have concerns about the potential impacts
of the statutory imposition of PSD requirements that may occur as a
result of the group of EPA actions, notwithstanding the relief provided
to small businesses by the Tailoring Rule. For these reasons, and in
collaboration with the SBA, EPA conducted an outreach meeting designed
to exchange information with small entities that may be interested in
these regulations. The outreach effort was organized and led by
representatives from EPA's Office of Air Quality Planning and Standards
within the Office of Air and Radiation, EPA's Office of Policy
Economics and Innovation, the Office of Information and Regulatory
Affairs within OMB, and the Office of Advocacy of the SBA. This meeting
was conducted on November 17, 2009 in Arlington, VA, and documentation
of this meeting, which includes a summary of the advice and
recommendations received from the small entity representatives
identified for the purposes of this process, can be obtained in the
docket for this rulemaking. (See Docket No. EPA-HQ-OAR-2009-0517-
19130.)
    During the comment period, several commenters alleged that EPA
inappropriately limited its RIA and RFA/SBREFA analysis, and that had
we done a comprehensive analysis, we would not have been able to
certify that any of the proposed rules will not have a significant
economic impact on a ``substantial number of small entities.'' Thus
they conclude that EPA failed to prepare and publicize an initial
regulatory flexibility analysis (IRFA). Additional commenters stated
that EPA's failure to conduct an IRFA to assess the full costs of the
effects of its interpretation of PSD applicability in the proposed
Tailoring Rule violates a host of statutes and Executive Orders
requiring analysis and public review of regulatory burdens. These
commenters conclude that EPA should have convened one or more SBAR
Panels.
    We are not persuaded that we should have taken into account effects
beyond those caused by the Tailoring Rule when we made our
certification of no significant economic impact on a substantial number
of small entities for this rule. No permitting requirements are imposed
by this final Tailoring Rule. Instead, this final Tailoring Rule offers
regulatory relief to over an estimated six million sources of GHG
emissions that would otherwise be required to obtain a title V permit
and tens of thousands of sources of GHG emissions subject to PSD
permitting requirements that would otherwise be required statutorily to
obtain permit. The RFA does not require that an agency complete a
regulatory flexibility analysis or conduct an SBAR panel where the rule
does not have any negative impact on small entities. For more
discussion of RFA issues, please see the RTC document.

D. Comments on the Unfunded Mandates Reform Act

    At proposal, EPA asserted that the Tailoring Rule does not impose
unfunded mandates on any entities including sources and permitting
authorities. Since the proposed Tailoring Rule is one of regulatory
relief, it alleviates the burden of adhering to statutorily required
permitting thresholds and does not impose regulatory requirements.
    Some commenters on the proposed rule assert that EPA has failed to
comply with the requirements of the Unfunded Mandates Reform Act
(UMRA), pursuant to which EPA must assess the effects of the proposed
rule on state, local, and tribal governments and the private sector.
Specifically, these commenters state that section 202 of the UMRA
requires EPA to prepare a written statement, including a cost-benefit
analysis, for proposed rules with ``federal mandates'' that may result
in expenditures to state, local, and tribal governments, in the
aggregate, or to the private sector, of $100 million or more in any 1
year. According to the commenters, in concluding that ``the revisions
would ultimately reduce the PSD and title V program administrative
burden that would otherwise occur in the absence of this rulemaking,''
EPA did not account for the billions of dollars that permitting
authorities and stationary sources will soon be required to spend once
PSD is triggered for GHGs. Additionally, a few commenters contend that
the EPA underestimated the impacts to public utilities which are owned/
operated by local governments and also to state regulatory agencies.
    The EPA has carefully considered the comments on unfunded mandates
expressed by commenters to the proposed rule. The EPA did complete a
RIA for the final rule assessing the benefits and costs of the
Tailoring Rule, including any unfunded mandates. As previously
discussed, the Tailoring Rule is one of regulatory relief because it
increases the GHG emissions threshold for NSR and title V permitting
substantially above otherwise statutory requirements. As such, the EPA
has determined that this Tailoring Rule does not impose unfunded
mandates on any entities. This RIA of the final rule incorporates the
extensive changes made in this final rule, including increased
threshold levels for title V and PSD above those contained in the
proposed rule. While we also incorporated improved estimates of the
costs for sources to obtain permits and for permitting authorities to
process permits, they do not change our conclusion that this final rule
does not impose unfunded mandates on any entities.

E. Comments on Executive Order 13132--Federalism

    Some comments received on the proposed rule assert that federalism
concerns were ignored, in violation of Executive Order 13132. According
to the commenters, EPA cannot maintain that the Tailoring Rule ``will
not have a substantial direct effect on the states, on the relationship
between the national government and the states, or on the distribution
of power and responsibilities between various levels of government,''
such that Executive Order 13132 does not apply. Some of these
commenters assert that the proposed rulemaking would require radical
changes in state laws, interjects GHGs into permit programs never once
conceived for that purpose (any more than was EPA's), requires massive
staff hiring at state agencies, and rewrites SIPs in place for years or
even decades.
    As we stated previously, this is a burden relief rule and as such
it does not impose any requirements for the NSR or title V programs
that are not currently required. In addition, this action does not
interject GHGs into the permit programs, nor does it change state laws
or SIPs to impose any new permitting requirements. Instead, this

action will significantly reduce the burden and costs incurred by
sources and permitting authorities relative to the burden and costs
that would be incurred if EPA did not revise the permitting provisions
to account for higher applicability thresholds for GHG emissions.
    However, since this rule finalizes burden reducing thresholds that
will not otherwise apply to the PSD and title V programs, we are aware
that a few states may have to amend their SIPs to incorporate these new
thresholds if they do not incorporate federal rules by reference and
cannot adopt our approach through interpretation. Executive Order 13132
is still not implicated by this rule because it finalizes burden
reducing thresholds that would not otherwise apply to the PSD and title
V programs.

F. Comments on Executive Order 13175--Consultation and Coordination
With Indian Tribal Governments

    The National Tribal Air Association (NTAA) supports EPA's proposed
rule but requests that tribal air grant funding be increased to reflect
the air quality-related needs of tribes across the nation, and to allow
these tribes the opportunity to implement the CAA's PSD and title V
programs. The NTAA states that, not only are tribes eligible for
section 103 grant funding to conduct air quality monitoring, emissions
inventories, and other studies and assessments, but they may also
obtain section 105 grant funding to implement CAA regulatory programs.
According to the NTAA, tribes are facing many of the same air-related
issues that neighboring state and local jurisdictions are facing, but
are significantly underfunded to address such issues.
    The Agency is aware and concerned about the resource needs for the
tribal air program and we are working to see how grant funding might be
increased in the future. Nevertheless and for the purpose of the
permitting programs, we want to clarify that tribes that develop Tribal
Implementation Plans (TIPs) can charge for permits and tribes with
delegation or authorization would develop permit fee programs under
their authority (e.g., Navajo's permit fee program for their delegated
title V permit program) to fund both the NSR and title V programs. For
these reasons, there are a number of ways we would like to work with
tribes to address the funding concern, including encouraging delegation
or authorization of permitting programs and having model codes
available for tribes that want to do TIPs for NSR and title V
permitting.

G. Comments on Executive Order 13211--Actions That Significantly Affect
Energy Supply, Distribution, or Use

    Other commenters assert that EPA's analysis under Executive Order
13211 is insufficient because it addresses only smaller sources. These
commenters contend that EPA has not meaningfully examined the energy
implications of its proposed actions and interpretations of the CAA.
The commenters disagree with EPA's conclusion that the imposition of
costly PSD obligations on power plants would have no impact on power
supply, distribution, or use, when those plants will have had no time
to prepare for compliance and no idea what BACT may be for GHG
emissions. Other commenters opine that the adoption of BACT for some
industries newly-subject to PSD permitting requirements for GHGs could
involve fuel-switching, and increased energy costs (due to the need for
a source to convert from coal to natural gas to meet BACT).
    Again, this action is a burden relief rule and as such it does not
create any new requirements for sources in the energy supply,
distribution, or use sectors. For the purpose of the BACT
determinations for GHGs, the long-standing top-down BACT selection
process still applies. Under the CAA and EPA's implementing
regulations, BACT is still an emission limitation based on the maximum
degree of emission reduction achievable through application of
production processes and available methods, systems, and techniques
that considers energy, environmental, and economic impacts. In other
words, BACT determinations for GHGs will still have to consider energy,
environmental and economic feasibility for the various control
technologies under consideration before selecting a particular
technology as BACT for a specific source. For that reason, what BACT
may be for GHG emissions will vary by source, and the technology that
is ultimately selected has to be one that is feasible based on the
current energy, environmental and economic impacts that the planned
technology might have. Thus, we do not believe that this action is
likely to have a significant adverse effect on the supply,
distribution, or use of energy.

VIII. Statutory and Executive Order Reviews

A. Executive Order 12866--Regulatory Planning and Review

    Under section 3(f)(1) of Executive Order 12866 (58 FR 51735,
October 4, 1993), this action is an ``economically significant
regulatory action'' because it is likely to have an annual effect on
the economy of $100 million or more. Accordingly, EPA submitted this
action to the OMB for review under Executive Order 12866 and any
changes made in response to OMB recommendations have been documented in
the docket for this action.
    In addition, EPA prepared an analysis of the potential costs and
benefits associated with this action. This analysis is contained in the
RIA for this final rule. A copy of the analysis is available in the
docket for this action and the analysis is briefly summarized in
section VII of this preamble.
    This rule uses a phased-in approach for requiring larger sources of
GHG emissions to comply with title V operating permit and PSD statutory
requirements, essentially lifting this burden for a period of at least
6 years for a large number of sources of GHG. Thus, this rule provides
regulatory relief rather than regulatory requirements for these GHG
sources. For sources of GHG that will be required to obtain title V
permits and/or comply with PSD requirements, there are no direct
economic burdens or costs as a result of this final rule, because these
requirements are not imposed as a result of this rulemaking. Statutory
requirements to obtain a title V operating permit or to adhere to PSD
requirements are already mandated by the CAA and by existing rules, not
by this rule. As a result, this Tailoring Rule annual effect on the
economy will be positive because it will result in billions of dollars
of regulatory relief during the phase-in period.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden.
Instead, this action will significantly reduce costs incurred by
sources and permitting authorities relative to the costs that would be
incurred if EPA did not revise the rule. Based on our revised GHG
threshold data analysis, we estimate that over 80,000 new and modified
facilities per year would be subject to PSD review based on applying a
GHG emissions threshold of 100/250 tpy using a CO2e metric.
This is compared to 280 PSD permits currently issued per year, which is
an increase of more than 280-fold. Similarly, for title V, we estimate
that over six million new sources would be affected at the 100-tpy
threshold for GHGs using the CO2e metric. By increasing the
volume of permits by over 400 times, the administrative burden would be
unmanageable without this rule.
    However, OMB has previously approved the information collection

requirements contained in the existing regulations for PSD (see, e.g.,
40 CFR 52.21) and title V (see 40 CFR parts 70 and 71) under the
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and
has assigned OMB control number 2060-0003 and OMB control number 2060-
0336. The OMB control numbers for EPA's regulations in 40 CFR are
listed in 40 CFR part 9.

C. Regulatory Flexibility Act

    The RFA generally requires an agency to prepare a regulatory
flexibility analysis of any rule subject to notice and comment
rulemaking requirements under the APA or any other statute unless the
agency certifies that the rule will not have a significant economic
impact on a substantial number of small entities. Small entities
include small businesses, small organizations, and small governmental
jurisdictions.
    For purposes of assessing the impacts of this final action on small
entities, small entity is defined as: (1) A small business that is a
small industrial entity as defined in the U.S. SBA size standards (see
13 CFR 121.201); (2) a small governmental jurisdiction that is a
government of a city, county, town, school district, or special
district with a population of less than 50,000; or (3) a small
organization that is any not-for-profit enterprise that is
independently owned and operated and is not dominant in its field.
    After considering the economic impacts of this final rule on small
entities, I certify that this final action will not have a significant
economic impact on a substantial number of small entities. In
determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule will not have a significant
economic impact on a substantial number of small entities if the rule
relieves regulatory burden, or otherwise has a positive economic effect
on all of the small entities subject to the rule.
    We have therefore concluded that this final rule will relieve the
regulatory burden for most affected small entities associated with the
major PSD and title V operating permits programs for new or modified
major sources that emit GHGs, including small businesses. This is
because this rule raises the major source applicability thresholds for
these programs for the sources that emit GHGs. As a result, the program
changes provided in this rule are not expected to result in a
significant economic impact on a substantial number of small entities.

D. Unfunded Mandates Reform Act

    This rule does not contain a federal mandate that may result in
expenditures of $100 million or more for state, local, and tribal
governments, in the aggregate, or the private sector in any 1 year.
Only those few states whose permitting authorities do not implement the
federal PSD and title V rules by reference in their SIPs will have a
small increase in burden. These states will have to amend their
corresponding SIPs to incorporate the new applicability thresholds,
since the burden reducing thresholds that we are finalizing with this
rule will not otherwise apply to the PSD and title V programs. Thus,
this rule is not subject to the requirements of sections 202 or 205 of
UMRA.
    This rule is also not subject to the requirements of section 203 of
UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments. As discussed
earlier, this rule is expected to result in cost savings and an
administrative burden reduction for all permitting authorities and
permittees, including small governments.

E. Executive Order 13132--Federalism

    This action does not have federalism implications. It will not have
substantial direct effects on the states, on the relationship between
the national government and the states, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132. These final amendments will
ultimately simplify and reduce the burden on state and local agencies
associated with implementing the PSD and title V operating permits
programs, by providing that a source whose GHG emissions are below the
proposed levels will not have to obtain a PSD permit or title V permit.
Thus, Executive Order 13132 does not apply to this action.
    In the spirit of Executive Order 13132, and consistent with EPA
policy to promote communications between EPA and state and local
governments, EPA specifically solicited comment on the proposed rule
from state and local officials.

F. Executive Order 13175--Consultation and Coordination With Indian
Tribal Governments

    Subject to the Executive Order 13175 (65 FR 67249, November 9,
2000) EPA may not issue a regulation that has tribal implications, that
imposes substantial direct compliance costs, and that is not required
by statute, unless the federal government provides the funds necessary
to pay the direct compliance costs incurred by tribal governments, or
EPA consults with tribal officials early in the process of developing
the proposed regulation and develops a tribal summary impact statement.
    EPA has concluded that this action may have tribal implications.
However, it will neither impose substantial direct compliance costs on
tribal governments, nor preempt tribal law. There are no tribal
authorities, currently issuing major NSR permits; however, this may
change in the future.
    EPA consulted with tribal officials early in the process of
developing this regulation to allow them to have meaningful and timely
input into its development by publishing an ANPR that included GHG
tailoring options for regulating GHGs under the CAA. (73 FR 44354, July
30, 2008) As a result of the ANPR, EPA received several comments from
tribal officials on differing GHG tailoring options presented in the
ANPR which were considered in the proposal and this final rule.
Additionally, we also specifically solicited comment from tribal
officials on the proposed rule (74 FR 55292, October 27, 2009).

G. Executive Order 13045--Protection of Children From Environmental
Health and Safety Risks

    EPA interprets Executive Order 13045 (62 FR 19885, April 23, 1997)
as applying only to those regulatory actions that concern health or
safety risks, such that the analysis required under section 5-501 of
the Executive Order has the potential to influence the regulation. This
action is not subject to Executive Order 13045 because it does not
establish an environmental standard intended to mitigate health or
safety risks.

H. Executive Order 13211--Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This action is not a ``significant energy action'' as defined in
Executive Order 13211 (66 FR 28355 (May 22, 2001)), because it is not
likely to have a significant adverse effect on the supply,
distribution, or use of energy. Further, we have concluded that this
rule is not likely to have any adverse energy effects

because this action would not create any new requirements for sources
in the energy supply, distribution, or use sectors.

I. National Technology Transfer and Advancement Act

    Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law No. 104-113, 12(d) (15 U.S.C. 272
note) directs EPA to use voluntary consensus standards in its
regulatory activities unless to do so would be inconsistent with
applicable law or otherwise impractical. Voluntary consensus standards
are technical standards (e.g., materials specifications, test methods,
sampling procedures, and business practices) that are developed or
adopted by voluntary consensus standards bodies. The NTTAA directs EPA
to provide Congress, through OMB, explanations when the Agency decides
not to use available and applicable voluntary consensus standards.
    This action does not involve technical standards. Therefore, EPA
did not consider the use of any voluntary consensus standards.

J. Executive Order 12898--Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (Feb. 16, 1994)) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
    EPA has concluded that it is not practicable to determine whether
there would be disproportionately high and adverse human health or
environmental effects on minority and/or low income populations from
this rule. This rule is necessary in order to allow for the continued
implementation of permitting requirements established in the statute.
Specifically, without this rule, the CAA permitting programs (PSD and
title V) would become overwhelmed and unmanageable by the millions of
GHG sources that would become newly subject to them. This would result
in severe impairment of the functioning of these programs with
potentially adverse human health and environmental effects nationwide.
Under this rule and the legal doctrines of ``absurd results,''
administrative necessity, and one-step-at-a-time, EPA is ensuring that
the CAA permitting programs continue to operate by limiting their
applicability to the maximum number of sources the programs can
possibly handle. This approach is consistent with congressional intent
as it allows PSD applicability to at least the largest sources
initially, at least to as many more sources as possible, and as
promptly as possible over time. By doing so, this rule allows for the
maximum degree of environmental protection possible while providing
regulatory relief for the unmanageable burden that would otherwise
exist. Therefore, we believe it is not practicable to identify and
address disproportionately high and adverse human health or
environmental effects on minority populations and low income
populations in the United States under this final rule.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by
SBREFA, generally provides that before a rule may take effect, the
agency promulgating the rule must submit a rule report, which includes
a copy of the rule, to each House of the Congress and to the
Comptroller General of the United States. EPA will submit a report
containing this rule and other required information to the U.S. Senate,
the U.S. House of Representatives, and the Comptroller General of the
United States prior to publication of the rule in the Federal Register.
A major rule cannot take effect until 60 days after it is published in
the Federal Register. This action is a ``major rule'' as defined by 5
U.S.C. 804(2). This rule will be effective August 2, 2010.

L. Judicial Review

    Under section 307(b)(1) of the Act, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the District of Columbia Circuit by August 2, 2010. Any such judicial
review is limited to only those objections that are raised with
reasonable specificity in timely comments. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
Under section 307(b)(2) of the Act, the requirements of this final
action may not be challenged later in civil or criminal proceedings
brought by us to enforce these requirements. Pursuant to section
307(d)(1)(V) of the Act, the Administrator determines that this action
is subject to the provisions of section 307(d). Section 307(d)(1)(V)
provides that the provisions of section 307(d) apply to ``such other
actions as the Administrator may determine.'' This action finalizes
some, but not all, elements of a previous proposed action--the
Prevention of Significant Deterioration and Title V Greenhouse Gas
Tailoring Rule Proposed Rule (74 FR 55292, October 27, 2009).

IX. Statutory Authority

    The statutory authority for this action is provided by sections
307(d)(7)(B), 101, 111, 114, 116, and 301 of the CAA as amended (42
U.S.C. 7401, 7411, 7414, 7416, and 7601). This action is also subject
to section 307(d) of the CAA (42 U.S.C. 7407(d)).

List of Subjects

40 CFR Part 51

    Environmental protection, Administrative practice and procedure,
Air pollution control, Carbon dioxide, Carbon dioxide equivalents,
Greenhouse gases, Hydrofluorocarbons, Intergovernmental relations,
Methane, Nitrous oxide, Perfluorocarbons, Reporting and recordkeeping
requirements, Sulfur hexafluoride.

40 CFR Part 52

    Environmental protection, Administrative practice and procedure,
Air pollution control, Carbon dioxide, Carbon dioxide equivalents,
Greenhouse gases, Hydrofluorocarbons, Intergovernmental relations,
Methane, Nitrous oxide, Perfluorocarbons, Reporting and recordkeeping
requirements, Sulfur hexafluoride.

40 CFR Part 70

    Environmental protection, Administrative practice and procedure,
Air pollution control, Carbon dioxide, Carbon dioxide equivalents,
Greenhouse gases, Hydrofluorocarbons, Intergovernmental relations,
Methane, Nitrous oxide, Perfluorocarbons, Reporting and recordkeeping
requirements, Sulfur hexafluoride.

40 CFR Part 71

    Environmental protection, Administrative practice and procedure,
Air pollution control, Carbon dioxide, Carbon dioxide equivalents,
Greenhouse gases, Hydrofluorocarbons, Methane, Nitrous oxide,
Perfluorocarbons, Reporting and recordkeeping requirements, Sulfur
hexafluoride.

    Dated: May 13, 2010.
Lisa P. Jackson,
Administrator.

0
For reasons stated in the preamble, title 40, chapter I of the Code of
Federal Regulations is amended as set forth below.

PART 51--[AMENDED]

0
1. The authority citation for part 51 continues to read as follows:

    Authority:  23 U.S.C. 101; 42 U.S.C. 7401-7671q.

Subpart I--[Amended]

0
2. Section 51.166 is amended:
0
a. By adding paragraph (b)(48);
0
b. By revising paragraph (b)(49)(iv); and
0
c. By adding paragraph (b)(49)(v).
    The revisions and additions read as follows:

Sec.  51.166  Prevention of significant deterioration of air quality.

* * * * *
    (b) * * *
    (48) Subject to regulation means, for any air pollutant, that the
pollutant is subject to either a provision in the Clean Air Act, or a
nationally-applicable regulation codified by the Administrator in
subchapter C of this chapter, that requires actual control of the
quantity of emissions of that pollutant, and that such a control
requirement has taken effect and is operative to control, limit or
restrict the quantity of emissions of that pollutant released from the
regulated activity. Except that:
    (i) Greenhouse gases (GHGs), the air pollutant defined in Sec.
86.1818-12(a) of this chapter as the aggregate group of six greenhouse
gases: Carbon dioxide, nitrous oxide, methane, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride, shall not be subject to
regulation except as provided in paragraphs (b)(48)(iv) through (v) of
this section.
    (ii) For purposes of paragraphs (b)(48)(iii) through (v) of this
section, the term tpy CO2 equivalent emissions
(CO2e) shall represent an amount of GHGs emitted, and shall
be computed as follows:
    (a) Multiplying the mass amount of emissions (tpy), for each of the
six greenhouse gases in the pollutant GHGs, by the gas's associated
global warming potential published at Table A-1 to subpart A of part 98
of this chapter--Global Warming Potentials.
    (b) Sum the resultant value from paragraph (b)(48)(ii)(a) of this
section for each gas to compute a tpy CO2e.
    (iii) The term emissions increase as used in paragraphs (b)(48)(iv)
through (v) of this section shall mean that both a significant
emissions increase (as calculated using the procedures in (a)(7)(iv) of
this section) and a significant net emissions increase (as defined in
paragraphs (b)(3) and (b)(23) of this section) occur. For the pollutant
GHGs, an emissions increase shall be based on tpy CO2e, and
shall be calculated assuming the pollutant GHGs is a regulated NSR
pollutant, and ``significant'' is defined as 75,000 tpy CO2e
instead of applying the value in paragraph (b)(23)(ii) of this section.
    (iv) Beginning January 2, 2011, the pollutant GHGs is subject to
regulation if:
    (a) The stationary source is a new major stationary source for a
regulated NSR pollutant that is not GHGs, and also will emit or will
have the potential to emit 75,000 tpy CO2e or more; or
    (b) The stationary source is an existing major stationary source
for a regulated NSR pollutant that is not GHGs, and also will have an
emissions increase of a regulated NSR pollutant, and an emissions
increase of 75,000 tpy CO2e or more; and,
    (v) Beginning July 1, 2011, in addition to the provisions in
paragraph (b)(48)(iv) of this section, the pollutant GHGs shall also be
subject to regulation:
    (a) At a new stationary source that will emit or have the potential
to emit 100,000 tpy CO2e; or
    (b) At an existing stationary source that emits or has the
potential to emit 100,000 tpy CO2e, when such stationary
source undertakes a physical change or change in the method of
operation that will result in an emissions increase of 75,000 tpy
CO2e or more.
    (49) * * *
    (iv) Any pollutant that otherwise is subject to regulation under
the Act as defined in paragraph (b)(48) of this section.
    (v) Notwithstanding paragraphs (b)(49)(i) through (iv) of this
section, the term regulated NSR pollutant shall not include any or all
hazardous air pollutants either listed in section 112 of the Act, or
added to the list pursuant to section 112(b)(2) of the Act, and which
have not been delisted pursuant to section 112(b)(3) of the Act, unless
the listed hazardous air pollutant is also regulated as a constituent
or precursor of a general pollutant listed under section 108 of the
Act.
* * * * *

PART 52--[AMENDED]

0
3. The authority citation for part 52 continues to read as follows:

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

Subpart A--[Amended]

0
4. Section 52.21 is amended:
0
a. By adding paragraph (b)(49);
0
b. By revising paragraph (b)(50)(iv); and
0
c. By adding paragraph (b)(50)(v).
    The revisions and additions read as follows:

Sec.  52.21  Prevention of significant deterioration of air quality.

* * * * *
    (b) * * *
    (49) Subject to regulation means, for any air pollutant, that the
pollutant is subject to either a provision in the Clean Air Act, or a
nationally-applicable regulation codified by the Administrator in
subchapter C of this chapter, that requires actual control of the
quantity of emissions of that pollutant, and that such a control
requirement has taken effect and is operative to control, limit or
restrict the quantity of emissions of that pollutant released from the
regulated activity. Except that:
    (i) Greenhouse gases (GHGs), the air pollutant defined in Sec.
86.1818-12(a) of this chapter as the aggregate group of six greenhouse
gases: Carbon dioxide, nitrous oxide, methane, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride, shall not be subject to
regulation except as provided in paragraphs (b)(49)(iv) through (v) of
this section.
    (ii) For purposes of paragraphs (b)(49)(iii) through (v) of this
section, the term tpy CO2 equivalent emissions
(CO2e) shall represent an amount of GHGs emitted, and shall
be computed as follows:
    (a) Multiplying the mass amount of emissions (tpy), for each of the
six greenhouse gases in the pollutant GHGs, by the gas's associated
global warming potential published at Table A-1 to subpart A of part 98
of this chapter--Global Warming Potentials.
    (b) Sum the resultant value from paragraph (b)(49)(ii)(a) of this
section for each gas to compute a tpy CO2e.
    (iii) The term emissions increase as used in paragraphs (b)(49)(iv)
through (v) of this section shall mean that both a significant
emissions increase (as calculated using the procedures in paragraph
(a)(2)(iv) of this section) and a significant net emissions increase
(as defined in paragraphs (b)(3) and (b)(23) of this section) occur.
For the pollutant GHGs, an emissions increase shall be based on tpy
CO2e, and shall be calculated assuming the pollutant GHGs is
a regulated NSR pollutant, and ``significant'' is defined as 75,000 tpy
CO2e instead of applying the value in paragraph (b)(23)(ii)
of this section.

    (iv) Beginning January 2, 2011, the pollutant GHGs is subject to
regulation if:
    (a) The stationary source is a new major stationary source for a
regulated NSR pollutant that is not GHGs, and also will emit or will
have the potential to emit 75,000 tpy CO2e or more; or
    (b) The stationary source is an existing major stationary source
for a regulated NSR pollutant that is not GHGs, and also will have an
emissions increase of a regulated NSR pollutant, and an emissions
increase of 75,000 tpy CO2e or more; and,
    (v) Beginning July 1, 2011, in addition to the provisions in
paragraph (b)(49)(iv) of this section, the pollutant GHGs shall also be
subject to regulation
    (a) At a new stationary source that will emit or have the potential
to emit 100,000 tpy CO2e; or
    (b) At an existing stationary source that emits or has the
potential to emit 100,000 tpy CO2e, when such stationary
source undertakes a physical change or change in the method of
operation that will result in an emissions increase of 75,000 tpy
CO2e or more.
    (50) * * *
    (iv) Any pollutant that otherwise is subject to regulation under
the Act as defined in paragraph (b)(49) of this section.
    (v) Notwithstanding paragraphs (b)(50)(i) through (iv) of this
section, the term regulated NSR pollutant shall not include any or all
hazardous air pollutants either listed in section 112 of the Act, or
added to the list pursuant to section 112(b)(2) of the Act, and which
have not been delisted pursuant to section 112(b)(3) of the Act, unless
the listed hazardous air pollutant is also regulated as a constituent
or precursor of a general pollutant listed under section 108 of the
Act.
* * * * *

0
5. A new Sec.  52.22 is added to read as follows:

Sec.  52.22  Enforceable commitments for further actions addressing the
pollutant greenhouse gases (GHGs).

    (a) Definitions.
    (1) Greenhouse Gases (GHGs) means the air pollutant as defined in
Sec.  86.1818-12(a) of this chapter as the aggregate group of six
greenhouse gases: Carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
    (2) All other terms used in this section shall have the meaning
given in Sec.  52.21.
    (b) Further action to regulate GHGs under the PSD program.
    (1) Near term action on GHGs. The Administrator shall solicit
comment, under section 307(b) of the Act, on promulgating lower GHGs
thresholds for PSD applicability. Such action shall be finalized by
July 1, 2012 and become effective July 1, 2013.
    (2) Further study and action on GHGs.
    (i) No later than April 30, 2015 the Administrator shall complete a
study projecting the administrative burdens that remain with respect to
stationary sources for which GHGs do not constitute a regulated NSR
pollutant. Such study shall account, among other things, for permitting
authorities ability to secure resources, hire and train staff;
experiences associated with GHG permitting for new types of sources and
technologies; and, the success of streamlining measures developed by
EPA (and adopted by the states) for reducing the permitting burden
associated with such stationary sources.
    (ii) Based on the results of the study described in paragraph
(b)(2)(i) of this section, the Administrator shall propose a rule
addressing the permitting obligations of such stationary sources under
Sec.  52.21 and Sec.  51.166 of this chapter. The Administrator shall
take final action on such a rule no later than April 30, 2016.
    (iii) Before completing the rule described in paragraph (b)(2)(ii)
of this section, the Administrator shall take no action to make the
pollutant GHGs subject to regulation at stationary sources that emit or
have the potential to emit less than 50,000 tpy CO2e, or for
physical changes or changes in the method of operations at stationary
sources that result in an emissions increase of less than 50,000 tpy
CO2e (as determined using the methodology described in Sec.
52.21(b)(49)(ii).)

PART 70--[AMENDED]

0
6. The authority citation for part 70 continues to read as follows:

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

0
7. Section 70.2 is amended:
0
a. By revising the introductory text of paragraph (2) of the definition
for ``major source''; and
0
b. By adding a definition for ``Subject to regulation'' in alphabetical
order.
    The revision and addition read as follows:

Sec.  70.2  Definitions.

* * * * *
    Major source * * *
    (2) A major stationary source of air pollutants, as defined in
section 302 of the Act, that directly emits, or has the potential to
emit, 100 tpy or more of any air pollutant subject to regulation
(including any major source of fugitive emissions of any such
pollutant, as determined by rule by the Administrator). The fugitive
emissions of a stationary source shall not be considered in determining
whether it is a major stationary source for the purposes of section
302(j) of the Act, unless the source belongs to one of the following
categories of stationary source:
* * * * *
    Subject to regulation means, for any air pollutant, that the
pollutant is subject to either a provision in the Clean Air Act, or a
nationally-applicable regulation codified by the Administrator in
subchapter C of this chapter, that requires actual control of the
quantity of emissions of that pollutant, and that such a control
requirement has taken effect and is operative to control, limit or
restrict the quantity of emissions of that pollutant released from the
regulated activity. Except that:
    (1) Greenhouse gases (GHGs), the air pollutant defined in Sec.
86.1818-12(a) of this chapter as the aggregate group of six greenhouse
gases: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride, shall not be subject to
regulation unless, as of July 1, 2011, the GHG emissions are at a
stationary source emitting or having the potential to emit 100,000 tpy
CO2 equivalent emissions.
    (2) The term tpy CO2 equivalent emissions
(CO2e) shall represent an amount of GHGs emitted, and shall
be computed by multiplying the mass amount of emissions (tpy), for each
of the six greenhouse gases in the pollutant GHGs, by the gas's
associated global warming potential published at Table A-1 to subpart A
of part 98 of this chapter--Global Warming Potentials, and summing the
resultant value for each to compute a tpy CO2e.
* * * * *

0
8. A new Sec.  70.12 is added to read as follows:

Sec.  70.12  Enforceable commitments for further actions addressing
greenhouse gases (GHGs).

    (a) Definitions.
    (1) Greenhouse Gases (GHGs) means the air pollutant as defined in
Sec.  86.1818-12(a) of this chapter as the aggregate group of six
greenhouse gases: carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
    (2) All other terms used in this section shall have the meaning
given in Sec.  70.2.
    (b) Further action to regulate GHGs under the title V program.
    (1) Near term action on GHGs. The Administrator shall solicit
comment,

under section 307(b) of the Act, on promulgating lower GHGs thresholds
for applicability under Sec.  70.2. Such action shall be finalized by
July 1, 2012 and become effective July 1, 2013.
    (2) Further study and action on GHGs.
    (i) No later than April 30, 2015 the Administrator shall complete a
study projecting the administrative burdens that remain with respect to
stationary sources for which GHGs do not constitute a pollutant subject
to regulation. Such study shall account, among other things, for
permitting authorities ability to secure resources, hire and train
staff; experiences associated with GHG permitting for new types of
sources and technologies; and, the success of streamlining measures
developed by EPA (and adopted by the states) for reducing the
permitting burden associated with such stationary sources.
    (ii) Based on the results of the study described in paragraph
(b)(2)(i) of this section, the Administrator shall propose a rule
addressing the permitting obligations of such stationary sources under
Sec.  70.2. The Administrator shall take final action on such a rule no
later than April 30, 2016.
    (iii) Before completing the rule described in paragraph (b)(2)(ii)
of this section, the Administrator shall take no action to make the
pollutant GHGs subject to regulation at stationary sources that emit or
have the potential to emit less than 50,000 tpy CO2e (as
determined using the methodology described in Sec.  70.2.)

PART 71--[AMENDED]

0
9. The authority citation for part 71 continues to read as follows:

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

Subpart A--[AMENDED]

0
10. Section 71.2 is amended:
0
a. By revising the introductory text of paragraph (2) of the definition
for ``major source''; and
0
b. By adding a definition for ``Subject to regulation'' in alphabetical
order.
    The revision and addition read as follows:

Sec.  71.2  Definitions.

* * * * *
    Major source * * *
    (2) A major stationary source of air pollutants, as defined in
section 302 of the Act, that directly emits or has the potential to
emit, 100 tpy or more of any air pollutant subject to regulation
(including any major source of fugitive emissions of any such
pollutant, as determined by rule by the Administrator). The fugitive
emissions of a stationary source shall not be considered in determining
whether it is a major stationary source for the purposes of section
302(j) of the Act, unless the source belongs to one of the following
categories of stationary source:
* * * * *
    Subject to regulation means, for any air pollutant, that the
pollutant is subject to either a provision in the Clean Air Act, or a
nationally-applicable regulation codified by the Administrator in
subchapter C of this chapter, that requires actual control of the
quantity of emissions of that pollutant, and that such a control
requirement has taken effect and is operative to control, limit or
restrict the quantity of emissions of that pollutant released from the
regulated activity. Except that:
    (1) Greenhouse gases (GHGs), the air pollutant defined in Sec.
86.1818-12(a) of this chapter as the aggregate group of six greenhouse
gases: carbon dioxide, nitrous oxide, methane, hydrofluorocarbons,
perfluorocarbons, and sulfur hexafluoride, shall not be subject to
regulation unless, as of July 1, 2011, the GHG emissions are at a
stationary source emitting or having the potential to emit 100,000 tpy
CO2 equivalent emissions.
    (2) The term tpy CO2 equivalent emissions
(CO2e) shall represent an amount of GHGs emitted, and shall
be computed by multiplying the mass amount of emissions (tpy), for each
of the six greenhouse gases in the pollutant GHGs, by the gas's
associated global warming potential published at Table A-1 to subpart A
of part 98 of this chapter--Global Warming Potentials, and summing the
resultant value for each to compute a tpy CO2e.

0
11. A new Sec.  71.13 is added to subpart A to read as follows:

Sec.  71.13  Enforceable commitments for further actions addressing
Greenhouse Gases (GHGs)

    (a) Definitions.
    (1) Greenhouse Gases (GHGs) means the air pollutant as defined in
Sec.  86.1818-12(a) of this chapter as the aggregate group of six
greenhouse gases: carbon dioxide, nitrous oxide, methane,
hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride.
    (2) All other terms used in this section shall have the meaning
given in Sec.  71.2.
    (b) Further action to regulate GHGs under the title V program.
    (1) Near term action on GHGs. The Administrator shall solicit
comment, under section 307(b) of the Act, on promulgating lower GHGs
thresholds for applicability under Sec.  71.2. Such action shall be
finalized by July 1, 2012 and become effective July 1, 2013.
    (2) Further study and action on GHGs.
    (i) No later than April 30, 2015, the Administrator shall complete
a study projecting the administrative burdens that remain with respect
to stationary sources for which GHGs do not constitute a pollutant
subject to regulation. Such study shall account, among other things,
for permitting authorities ability to secure resources, hire and train
staff; experiences associated with GHG permitting for new types of
sources and technologies; and, the success of streamlining measures
developed by EPA (and adopted by the states) for reducing the
permitting burden associated with such stationary sources.
    (ii) Based on the results of the study described in paragraph
(b)(2)(i) of this section, the Administrator shall propose a rule
addressing the permitting obligations of such stationary sources under
Sec.  71.2. The Administrator shall take final action on such a rule no
later than April 30, 2016.
    (iii) Before completing the rule described in paragraph (b)(2)(ii)
of this section, the Administrator shall take no action to make the
pollutant GHGs subject to regulation at stationary sources that emit or
have the potential to emit less than 50,000 tpy CO2e, (as
determined using the methodology described in Sec.  71.2.)

[FR Doc. 2010-11974 Filed 6-2-10; 8:45 am]
BILLING CODE 6560-50-P