contributors and should be included in the direct PM2.5
budget. See 40 CFR 93.102(b) and 93.122(f) and the conformity rule
preamble at 69 FR 40004, 40031-40036 (July 1, 2004).
2. Motor Vehicle Emissions Budgets in the 2012 PM2.5 Plan
and 2015 Supplement
    The 2015 Supplement revised the attainment demonstration in the
2012 PM2.5 Plan to identify December 31, 2015 as the
applicable attainment date, and included revised budgets for 2015 for
directly emitted PM2.5, NOX, and VOC. See 2015
Supplement, Attachment C, Table C-1. These budgets reflect average
annual daily emissions and are calculated using EMFAC2011, the
currently approved mobile source emission model for California, and
transportation activity from SCAG's adopted 2012 Regional
Transportation Plan (RTP), consistent with the methodology for
developing the emissions inventories used in the attainment
demonstration. Reductions from incentive measures were removed from the
budgets, and off-model reductions for reformulated gasoline (RFG) and
SmogCheck (California's inspection and maintenance program) which were
not in EMFAC2011 were included in the budgets, consistent with

the emissions inventory used in the attainment demonstration.
    The direct PM2.5 budgets included tailpipe, brake wear,
and tire wear emissions as well as paved and unpaved road dust and road
construction dust. No budgets for SO2 were included in the
2012 PM2.5 Plan or 2015 Supplement because on-road emissions
of SO2 are a small part (11 percent) of the total
SO2 inventory. No budgets for ammonia were included in the
2012 PM2.5 Plan or 2015 Supplement.
3. Conclusion and Proposed Actions
    We are not acting on the motor vehicle emission budgets for direct
PM2.5, NOX, and VOC in the 2012 PM2.5
Plan or 2015 Supplement. We previously approved motor vehicle emissions
budgets for the 1997 annual and 24-hour PM2.5 standards (76
FR 69928, 69951 (November 9, 2011)), and these budgets will continue to
apply in the South Coast for transportation conformity purposes for
these standards. The same budgets will also continue to apply for the
2006 24-hour PM2.5 standard until we finalize our approval
of new budgets in the Serious area plan for the 2006 PM2.5
NAAQS or find those budgets adequate.\60\
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    \60\ In 2012, the EPA revised the annual PM2.5
standard, lowering its level from 15 [micro]g/m\3\ to 12 [micro]g/
m\3\ (78 FR 3086 (January 15, 2013). We finalized designations for
the 2012 standard in December, 2014 and these designations became
effective April 15, 2015. See 80 FR 2206, January 15, 2015. For
purposes of the 2012 PM2.5 standard, the regional
conformity test requirements for all nonattainment and maintenance
areas in 40 CFR 93.109 will apply one year after the effective date
of EPA's nonattainment designations in accordance with section
93.102(d) and until the effective date of revocation of such NAAQS.
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J. General Conformity Budgets

1. Requirements for General Conformity
    Conformity is required under CAA section 176(c) to ensure that
federal actions are consistent with (``conform to'') the purpose of the
SIP. Conformity to the purpose of the SIP means that federal activities
will not cause new air quality violations, worsen existing violations,
or delay timely attainment of the relevant NAAQS or interim reductions
and milestones. Conformity applies to areas that are designated
nonattainment and to maintenance areas.
    Section 176(c)(4) of the CAA establishes the framework for general
conformity. The EPA first promulgated general conformity regulations in
November 1993 (40 CFR part 51, subpart W, 40 CFR part 93, subpart B).
Subsequently we revised the general conformity regulations on April 5,
2010 (75 FR 17254). Besides ensuring that federal actions not covered
by the transportation conformity rule will not interfere with the SIP,
the general conformity regulations encourage consultation between the
federal agency and the state or local air pollution control agencies
before and during the environmental review process, as well as public
notification of and access to federal agency conformity determinations,
and allows for air quality review of individual federal actions.
    The general conformity regulations provides three phases: (A)
Applicability analysis, (B) conformity determination, and (C) review
process. The applicability analysis phase under 40 CFR 93.153 is used
to find if a Federal action requires a conformity determination for a
specific pollutant. If a conformity determination is needed, Federal
agencies can use one of several methods to show that the project
conforms to the SIP. In an area without a State Implementation Plan
(SIP), a federal action may be shown to ``conform'' by demonstrating
there will be no net increase in emission in the nonattainment or
maintenance area from the Federal action.
    In an area with a SIP, conformity to the applicable SIP can be
demonstrated in one of several ways. For actions where the direct and
indirect emissions exceeds the rates in 40 CFR 93.153(b), the federal
action can include mitigation efforts to bring emissions to levels
below the thresholds or can show that the action will conform by
meeting any of the following requirements:
     By showing that the net emission increases caused by an
action are included in the SIP,
     by documenting that the State agrees to include the
emission increases in the SIP,
     through offsetting the action's emissions in the same or
nearby area of equal or greater classification, or
     through an air quality modeling demonstration in some
circumstances.
    The general conformity regulations at 40 CFR 93.161 allow state and
local air quality agencies working with federal agencies with large
facilities (e.g., commercial airports, ports and large military bases)
that are subject to the general conformity regulations to develop and
adopt an emissions budget for those facilities in order to facilitate
future conformity determinations. Such a budget, referred to as a
facility-wide emission budget, may be used by federal agencies to
demonstrate conformity as long as the total facility-wide budget level
identified in the SIP is not exceeded.
    According to 40 CFR 93.161, the state or local agency responsible
for implementing and enforcing the SIP can develop and adopt an
emissions budget to be used for demonstrating conformity under 40 CFR
93.158(a)(1). The facility-wide budget must (1) be for a set time
period; (2) cover the pollutants or precursors of the pollutants for
which the area is designated nonattainment or maintenance; (3) the
budgets are specific about what can be emitted on an annual or seasonal
basis; (4) the emissions from the facility along with all other
emissions in the area will not exceed the total SIP emissions budget
for the nonattainment or maintenance area; (5) specific measures are
included to ensure compliance with the facility-wide budget, such as
periodic reporting requirements or compliance demonstrations when the
Federal agency is taking an action that would otherwise require a
conformity determination; (6) the budget must be submitted to EPA as a
SIP revision; and (7) the SIP revision must be approved by EPA. Having
or using a facility-wide emissions budget does not preclude a Federal
agency from demonstrating conformity in any other manner allowed by the
conformity rule.
2. General Conformity Budget in the 2012 PM2.5 Plan and 2015
Supplement
    The 2012 PM2.5 Plan addresses general conformity
beginning on page II-2-52 of Appendix III. The District identified the
de minimis thresholds for general conformity in the South Coast as 10
tpy of VOC and NOX because of its designation and
classification as a severe ozone nonattainment area, and 100 tpy of
PM2.5 because of its designation and classification as a
moderate PM2.5 nonattainment area. The District examined
historical records and noted that projects requiring general conformity
determinations had historically not exceeded the PM2.5 de
minimis levels. The main pollutant of concern during project
construction was NOX, and to a lesser extent, VOC. To
streamline the general conformity process for projects and to
facilitate general conformity determinations, VOC and NOX
general conformity budgets of 1 tpd of NOX and 0.2 tpd of
VOC were established on an annual basis from 2013 to 2030. These
general conformity budgets will be tracked via a tracking system that
the District sets up for projects subject to general conformity
determinations. The District will count project emissions towards the
applicable general conformity budget until the budget has been
exhausted. Any unused portions will not carry forward from year to
year. Once the

budget is exhausted, federal projects can still demonstrate conformity
using other provisions in the conformity rule.
3. Evaluation and Proposed Action
    We propose to approve the general conformity budgets in the 2012
PM2.5 Plan for NOX and VOC for 2013 to 2030 as
meeting the requirements of the CAA and the general conformity rule. If
we finalize our approval of these budgets, Federal agencies can use
these budgets to demonstrate that their projects conform to the SIP
through a letter from the state and District confirming that the
project emissions are accounted for in the SIP's general conformity
budgets. The District will be responsible for tracking emissions from
all projects against the budgets. Once the budgets are used, future
federal projects will need to demonstrate conformity using a different
method. Any federal projects that emit criteria pollutants or pollutant
precursors other than those for which general conformity budgets are
established will still need to demonstrate conformity for those
pollutants or precursors.

V. Proposed Reclassification as Serious Nonattainment and Serious Area
SIP Requirements

A. Proposed Reclassification as Serious and Applicable Attainment Date

    Section 188 of the Act outlines the process for classification of
PM2.5 nonattainment areas and establishes the applicable
attainment dates. Under the plain meaning of the terms of section
188(b)(1) of the Act, the EPA has general authority to reclassify at
any time before the applicable attainment date any area that the EPA
determines cannot practicably attain the standard by such date.
Accordingly, section 188(b)(1) of the Act is a general expression of
delegated rulemaking authority. In addition, subparagraphs (A) and (B)
of section 188(b)(1) mandate that the EPA reclassify ``appropriate''
PM10 nonattainment areas at specified time frames (i.e., by
December 31, 1991 for the initial PM10 nonattainment areas,
and within 18 months after the SIP submittal due date for subsequent
nonattainment areas). These subparagraphs do not restrict the EPA's
general authority but simply specify that, at a minimum, it must be
exercised at certain times.\61\
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    \61\ For a general discussion of EPA's interpretation of the
reclassification provisions in section 188(b)(1) of the Act, see the
General Preamble, 57 FR 13498 at 13537-38 (April 16, 1992).
---------------------------------------------------------------------------

    We have reviewed recent PM2.5 monitoring data for the
South Coast available in the EPA's Air Quality System (AQS) database.
These data show that 24-hour PM2.5 levels in the South Coast
continue to be above 35 [micro]g/m\3\, the level of the 2006
PM2.5 standard, and the recent trends in the South Coast's
24-hour PM2.5 levels are not consistent with a projection of
attainment by the end of 2015. (See Memorandum dated August 21, 2015,
Michael Flagg, US EPA Region 9, Air Quality Analysis Office).
    In accordance with section 188(b)(1) of the Act, the EPA is
proposing to reclassify the South Coast area from Moderate to Serious
nonattainment for the 2006 24-hour PM2.5 standard of 35
[micro]g/m\3\, based on the EPA's determination that the South Coast
area cannot practicably attain this standard by the applicable
attainment date of December 31, 2015.
    Under section 188(c)(2) of the Act, the attainment date for a
Serious area ``shall be as expeditiously as practicable but no later
than the end of the tenth calendar year beginning after the area's
designation as nonattainment. . . .'' The South Coast area was
designated nonattainment for the 2006 PM2.5 standard
effective December 14, 2009.\62\ Therefore, upon final reclassification
of the South Coast area as a Serious nonattainment area, the latest
permissible attainment date under section 188(c)(2) of the Act, for
purposes of the 2006 PM2.5 standard in this area, will be
December 31, 2019.
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    \62\ See 74 FR 58688 (November 13, 2009).
---------------------------------------------------------------------------

    Under section 188(e) of the Act, a state may apply to EPA for a
single extension of the Serious area attainment date by up to 5 years,
which the EPA may grant if the State satisfies certain conditions.
Before the EPA may extend the attainment date for a Serious area under
section 188(e), the State must: (1) Apply for an extension of the
attainment date beyond the statutory attainment date; (2) demonstrate
that attainment by the statutory attainment date is impracticable; (3)
have complied with all requirements and commitments pertaining to the
area in the implementation plan; (4) demonstrate to the satisfaction of
the Administrator that the plan for the area includes the most
stringent measures that are included in the implementation plan of any
State or are achieved in practice in any State, and can feasibly be
implemented in the area; and (5) submit a demonstration of attainment
by the most expeditious alternative date practicable.\63\
---------------------------------------------------------------------------

    \63\ For a discussion of EPA's interpretation of the
requirements of section 188(e), see ``State Implementation Plans for
Serious PM10 Nonattainment Areas, and Attainment Date
Waivers for PM10 Nonattainment Areas Generally; Addendum
to the General Preamble for the Implementation of Title I of the
Clean Air Act Amendments of 1990,'' 59 FR 41998 (August 16, 1994)
(hereafter ``Addendum'') at 42002; 65 FR 19964 (April 13, 2000)
(proposed action on PM10 Plan for Maricopa County,
Arizona); 66 FR 50252 (October 2, 2001) (proposed action on
PM10 Plan for Maricopa County, Arizona); 67 FR 48718
(July 25, 2002) (final action on PM10 Plan for Maricopa
County, Arizona); and Vigil v. EPA, 366 F.3d 1025, amended at 381
F.3d 826 (9th Cir. 2004) (remanding EPA action on PM10
Plan for Maricopa County, Arizona but generally upholding EPA's
interpretation of CAA section 188(e)).
---------------------------------------------------------------------------

B. Clean Air Act Requirements for Serious PM2.5
Nonattainment Area Plans

    Upon reclassification as a Serious nonattainment area for the 2006
PM2.5 NAAQS, California will be required to submit
additional SIP revisions to satisfy the statutory requirements that
apply to Serious PM2.5 nonattainment areas, including the
requirements of subpart 4 of part D, title I of the Act.
    The Serious area SIP elements that California will be required to
submit are as follows:
    1. Provisions to assure that the best available control measures
(BACM), including best available control technology (BACT) for
stationary sources, for the control of direct PM2.5 and
PM2.5 precursors shall be implemented no later than 4 years
after the area is reclassified (CAA section 189(b)(1)(B));
    2. a demonstration (including air quality modeling) that the plan
provides for attainment as expeditiously as practicable but no later
than December 31, 2019, or where the State is seeking an extension of
the attainment date under section 188(e), a demonstration that
attainment by December 31, 2019 is impracticable and that the plan
provides for attainment by the most expeditious alternative date
practicable and no later than December 31, 2024 (CAA sections 188(c)(2)
and 189(b)(1)(A));
    3. plan provisions that require reasonable further progress (RFP)
(CAA 172(c)(2));
    4. quantitative milestones which are to be achieved every 3 years
until the area is redesignated attainment and which demonstrate RFP
toward attainment by the applicable date (CAA section 189(c));
    5. provisions to assure that control requirements applicable to
major stationary sources of PM2.5 also apply to major
stationary sources of PM2.5 precursors, except where the
state demonstrates to the EPA's satisfaction that such sources do not
contribute significantly to PM2.5 levels that exceed the
standard in the area (CAA section 189(e));
    6. a comprehensive, accurate, current inventory of actual emissions
from all

sources of PM2.5 and PM2.5 precursors in the area
(CAA section 172(c)(3));
    7. contingency measures to be implemented if the area fails to meet
RFP or to attain by the applicable attainment date (CAA section
172(c)(9)); and
    8. A revision to the nonattainment new source review (NSR) program
to lower the applicable ``major stationary source'' \64\ thresholds
from 100 tons per year (tpy) to 70 tpy (CAA section 189(b)(3)).
---------------------------------------------------------------------------

    \64\ For any Serious area, the terms ``major source'' and
``major stationary source'' include any stationary source that emits
or has the potential to emit at least 70 tons per year of
PM10 (CAA sections 189(b)(3)).
---------------------------------------------------------------------------

    Final reclassification of the South Coast area as Serious
nonattainment for the 2006 PM2.5 standard may also lower the
de minimis threshold under the CAA's General Conformity requirements
(40 CFR part 93, subpart B) from 100 tpy to 70 tpy for PM2.5
and PM2.5 precursors. See 80 FR 15339 at 15441.
    In March of 2015, the EPA issued a proposed rulemaking to provide
guidance to states on the attainment planning requirements in subparts
1 and 4 of part D, title I of the Act that apply to areas designated
nonattainment for PM2.5.\65\ In the interim, before the
PM2.5 implementation rule is finalized, the EPA encourages
the State to review the proposed rulemaking as well as the General
Preamble and Addendum for guidance on how to implement these statutory
requirements in the South Coast PM2.5 nonattainment
area.\66\
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    \65\ See 80 FR 15339, ``Fine Particulate Matter National Ambient
Air Quality Standards: State Implementation Plan Requirements,''
March 23, 2015.
    \66\ See generally the General Preamble, 57 FR 13498 (April 16,
1992) and Addendum, 59 FR 41998 (August 16, 1994).
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C. Statutory Deadline for Submittal of the Serious Area Plan

    For an area reclassified as a Serious nonattainment area before the
applicable attainment date under CAA section 188(b)(1), section
189(b)(2) requires the State to submit the required BACM provisions
``no later than 18 months after reclassification of the area as a
Serious Area'' and to submit the required attainment demonstration ``no
later than 4 years after reclassification of the area to Serious.''
Section 189(b)(2) establishes outer bounds on the SIP submission
deadlines and does not preclude the EPA's establishment of earlier
deadlines as necessary or appropriate to assure consistency among the
required submissions and to implement the statutory requirements.
    If a final reclassification of the South Coast PM2.5
nonattainment area to Serious becomes effective by early 2016, the Act
provides the State with up to 18 months after this date (i.e., until
mid-2017) to submit the required BACM provisions. Because an up-to-date
emissions inventory serves as the foundation for a state's BACM and
BACT determinations, the EPA also proposes to require the State to
submit the emissions inventory required under CAA section 172(c)(3)
within 18 months after the effective date of final reclassification.
Similarly, because an effective evaluation of BACM and BACT measures
requires evaluation of the precursor pollutants that must be controlled
to provide for expeditious attainment in the area, if the State chooses
to submit an optional precursor insignificance demonstration to support
a determination to exclude a PM2.5 precursor from the
required control measure evaluations for the area, the EPA proposes to
require the State to submit any such demonstration by this same date.
An 18-month timeframe for submission of these plan elements is
consistent with both the timeframe for submission of BACM provisions
under CAA section 189(b)(2) and the timeframe for submission of subpart
1 plan elements under section 172(b) of the Act.\67\
---------------------------------------------------------------------------

    \67\ Section 172(b) requires the EPA to establish, concurrent
with nonattainment area designations, a schedule extending no later
than 3 years from the date of the nonattainment designation for
states to submit plans or plan revisions meeting the applicable
requirements of sections 110(a)(2) and 172(c) of the CAA.
---------------------------------------------------------------------------

    The EPA proposes to require the State to submit the attainment
demonstration required under section 189(b)(1)(A) and the remaining
attainment-related plan elements no later than three years after the
effective date of final reclassification or by December 31, 2018,
whichever is earlier. The attainment-related plan elements that we
propose to require within the same 3-year timeframe as the attainment
demonstration are: (1) The RFP demonstration required under section
172(c)(2); (2) the quantitative milestones required under section
189(c); (3) any additional control measures necessary to meet the
requirements of section 172(c)(6); and (4) the contingency measures
required under section 172(c)(9). Although section 189(b)(2) generally
provides for up to 4 years after a discretionary reclassification for
the State to submit the required attainment demonstration, it is
appropriate in this case for the EPA to establish an earlier SIP
submission deadline to assure timely implementation of the statutory
requirements.
    The EPA designated the South Coast area as nonattainment for the
2006 PM2.5 standard effective December 14, 2009.\68\ On
January 4, 2013, the D.C. Circuit Court of Appeals issued its decision
in NRDC remanding EPA's 2007 PM2.5 Implementation Rule and
directing the EPA to repromulgate it in accordance with the
requirements of subpart 4.\69\ In response to the NRDC decision, the
EPA undertook a rulemaking to classify all PM2.5
nonattainment areas as Moderate nonattainment and begin implementing
the PM2.5 NAAQS under subpart 4. Effective July 2, 2014, the
EPA classified all areas previously designated nonattainment for the
1997 and/or 2006 PM2.5 NAAQS as Moderate nonattainment under
subpart 4 and established a December 31, 2014 deadline for states to
submit Moderate area SIP elements required for these areas.\70\ These
unusual circumstances have significantly shortened the timeframes
ordinarily allowed under the Act for the EPA and the states to address
the statutory SIP requirements following reclassification of an area
from Moderate to Serious nonattainment under subpart 4.\71\
---------------------------------------------------------------------------

    \68\ 74 FR 58688 (November 13, 2009).
    \69\ NRDC v. EPA, 706 F.3d 428 (D.C. Cir. 2013).
    \70\ 79 FR 31566 (June 2, 2014). The EPA notes that some states
had already made SIP submissions intended to meet applicable
nonattainment plan requirements as interpreted in the remanded 2007
PM2.5 Implementation Rule. Accordingly, the new SIP
submission deadline provided the opportunity for states to revise or
supplement their prior submissions, as necessary or appropriate to
meet subpart 4 requirements.
    \71\ For areas designated nonattainment after November 15, 1990,
section 188(b)(1)(B) of the Act requires that the EPA ``reclassify
appropriate areas within 18 months after the required date for the
State's submission of a SIP for the Moderate Area.'' Read together
with section 189(a)(2)(B), which requires states to submit Moderate
Area plans within 18 months after nonattainment designations,
section 188(b)(1)(B) generally contemplates that EPA would
reclassify appropriate areas as Serious nonattainment no later than
36 months (3 years) after initial nonattainment designations. Under
these circumstances, the required Serious area attainment
demonstration would normally be submitted no later than 7 years
after initial designation (4 years after reclassification), which is
3 years before the latest permissible attainment date under CAA
section 188(c)(2).
---------------------------------------------------------------------------

    Our proposal to require the State to submit the attainment
demonstration and other attainment-related plan elements no later than
three years after reclassification or by December 31, 2018, whichever
is earlier, is supported by the overall structure and purpose of the
attainment planning requirements in part D, title I of the Act. Section
188(b)(1) provides the EPA with discretionary authority to reclassify
an area as Serious nonattainment at any time before the applicable
attainment date, based on a determination that the

area cannot practicably attain the NAAQS by the Moderate area
attainment date. Under normal circumstances, where the EPA reclassifies
an area within 3 years after its designation as nonattainment, as
contemplated in CAA section 188(b)(1)(B),\72\ the required BACM
provisions would be due no later than 18 months after reclassification
(i.e., no later than 4.5 years after designation) and the required
attainment demonstration would be due no later than 4 years after
reclassification (i.e., no later than 7 years after designation).\73\
In these circumstances, the Serious area attainment demonstration would
be due at least 3 years before the outermost Serious area attainment
date for the area,\74\ thus providing the EPA with sufficient time to
evaluate the submitted plan well in advance of the statutory attainment
date. However, in situations such as this, where the EPA reclassifies
an area pursuant to its discretionary reclassification authority later
than 3 years after the area's designation as nonattainment, it is
appropriate for the EPA to consider the outermost Serious area
attainment date applicable to the area in setting a deadline for the
State to submit the required elements of the Serious area attainment
plan.
---------------------------------------------------------------------------

    \72\ Id.
    \73\ CAA section 189(b)(2). By contrast, for an area that is
reclassified as Serious by operation of law after the applicable
attainment date, which may be as late as the end of the 6th year
after the area's designation as nonattainment (CAA section
188(b)(1)), the state must submit both the BACM provisions and the
Serious area attainment demonstration no later than 18 months after
reclassification. Id.
    \74\ Under CAA section 188(c)(2), the latest permissible
attainment date for a Serious PM2.5 nonattainment area is
no later than the end of the tenth calendar year beginning after the
area's designation as nonattainment.
---------------------------------------------------------------------------

    Upon reclassification as Serious, the South Coast PM2.5
nonattainment area will be subject to a Serious area attainment date no
later than December 31, 2019.\75\ Sections 189(b)(1)(A) and 189(c) of
the Act require the State to submit a demonstration that the plan
provides for attainment of the PM2.5 standard by this date,
including quantitative milestones which are to be achieved every 3
years until the area is redesignated attainment and which demonstrate
reasonable further progress toward attainment by this date. If the EPA
reclassifies the South Coast area effective in early 2016 and allows
the State 4 years following reclassification (i.e., potentially until
early 2020) to submit the attainment demonstration and related plan
elements, these Serious area plan provisions would not be due until
after the latest permissible statutory attainment date for the area
(December 31, 2019) has come and gone. Thus, under such circumstances,
allowing the maximum 4-year timeframe for submission of the required
attainment demonstration and related plan elements would frustrate the
statutory design and severely constrain the EPA's ability to ensure
that the State is implementing the applicable statutory requirements in
a timely manner.
---------------------------------------------------------------------------

    \75\ Id.
---------------------------------------------------------------------------

    Therefore, it is appropriate for the EPA to require California to
submit the required attainment demonstration and other attainment-
related plan elements no later than 3 years after final
reclassification or by December 31, 2018, whichever is earlier, so that
the EPA has adequate time to review and act on the State's submission
prior to the latest permissible attainment date for the area under
section 188(c)(2), which is December 31, 2019. This timeframe for the
required Serious area plan submissions is appropriate to assure
consistency among the required submissions and to implement the
statutory requirements in a timely manner.
    Finally, the EPA proposes to require that the State submit revised
nonattainment NSR program requirements no later than 18 months after
final reclassification. The Act does not specify a deadline for the
State's submission of SIP revisions to meet nonattainment NSR program
requirements to lower the ``major stationary source'' threshold from
100 tons per year (tpy) to 70 tpy (CAA section 189(b)(3)) and to
address the control requirements for major stationary sources of
PM2.5 precursors (CAA section 189(e)) \76\ following
reclassification of a Moderate PM2.5 nonattainment area as
Serious nonattainment under subpart 4. Pursuant to the EPA's gap-
filling authority in CAA section 301(a) and to effectuate the statutory
control requirements in section 189 of the Act, the EPA proposes to
require the State to submit these nonattainment NSR SIP revisions, as
well as any necessary analysis of and additional control requirements
for major stationary sources of PM2.5 precursors, no later
than 18 months after the effective date of final reclassification of
the South Coast area as Serious nonattainment for the 2006
PM2.5 standard. This due date will ensure that necessary
control requirements for major sources are established well in advance
of the required attainment demonstration. An 18-month timeframe for
submission of the NNSR SIP revisions also aligns with the statutory
deadline for submission of BACM and BACT provisions and the broader
analysis of PM2.5 precursors for potential controls on
existing sources in the area.
---------------------------------------------------------------------------

    \76\ Section 189(e) requires that the control requirements
applicable to major stationary sources of PM2.5 also
apply to major stationary sources of PM2.5 precursors,
except where the state demonstrates to the EPA's satisfaction that
such sources do not contribute significantly to PM2.5
levels that exceed the standard in the area.
---------------------------------------------------------------------------

VI. Reclassification of Reservation Areas of Indian Country

    Seven Indian tribes are located within the boundaries of the South
Coast PM2.5 nonattainment area. These tribes are listed in
Table 4 below.

 Table 4--Indian Tribes Located in South Coast PM2.5 Nonattainment Area
------------------------------------------------------------------------

-------------------------------------------------------------------------
Cahuilla Band of Indians
Morongo Band of Cahuilla Mission Indians
Pechanga Band of Luiseno Mission Indians of the Pechanga Reservation
Ramona Band of Cahuilla
San Manuel Band of Serrano Mission Indians of the San Manuel Reservation
Santa Rosa Band of Cahuilla Indians
Soboba Band of Luiseno Indians
------------------------------------------------------------------------

    We have considered the relevance of our proposal to reclassify the
South Coast area as Serious nonattainment for the 2006 PM2.5
standard to each tribe located within the South Coast area. We believe
that the same facts and circumstances that support the proposal for the
non-Indian country lands also support the proposal for reservation
areas of Indian country \77\ and any other area of Indian country where
the EPA or a tribe has demonstrated that the tribe has jurisdiction
located within the South Coast nonattainment area. The EPA is therefore
proposing to exercise our authority under CAA section 188(b)(1) to
reclassify areas of Indian country geographically located in the South
Coast nonattainment area. Section 188(b)(1) broadly authorizes the EPA
to reclassify a nonattainment area--including any Indian country
located within such an area--that EPA

determines cannot practicably attain the relevant standard by the
applicable attainment date.
---------------------------------------------------------------------------

    \77\ ``Indian country'' as defined at 18 U.S.C. 1151 refers to:
``(a) all land within the limits of any Indian reservation under the
jurisdiction of the United States Government, notwithstanding the
issuance of any patent, and, including rights-of-way running through
the reservation, (b) all dependent Indian communities within the
borders of the United States whether within the original or
subsequently acquired territory thereof, and whether within or
without the limits of a state, and (c) all Indian allotments, the
Indian titles to which have not been extinguished, including rights-
of-way running through the same.''
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    Directly-emitted PM2.5 and its precursor pollutants
(NOX, SO2, VOC, and ammonia) are emitted
throughout a nonattainment area and can be transported throughout that
nonattainment area. Therefore, boundaries for nonattainment areas are
drawn to encompass both areas with direct sources of the pollution
problem as well as nearby areas in the same airshed. Initial
classifications of nonattainment areas are coterminous with, that is,
they match exactly, their boundaries. The EPA believes this approach
best ensures public health protection from the adverse effects of
PM2.5 pollution. Therefore, it is generally
counterproductive from an air quality and planning perspective to have
a disparate classification for a land area located within the
boundaries of a nonattainment area, such as the reservation areas of
Indian country contained within the South Coast PM2.5
nonattainment area. Moreover, violations of the 2006 PM2.5
standard, which are measured and modeled throughout the nonattainment
area, as well as shared meteorological conditions, would dictate the
same conclusion. Furthermore, emissions increases in portions of a
PM2.5 nonattainment area that are left classified as
Moderate could counteract the effects of efforts to attain the standard
within the overall area because less stringent requirements would apply
in those Moderate portions relative to those that would apply in the
portions of the area reclassified to Serious.
    Uniformity of classification throughout a nonattainment area is
thus a guiding principle and premise when an area is being
reclassified. Equally, if the EPA believes it is likely that a given
nonattainment area will not attain the PM2.5 standard by the
applicable attainment date, then it may be an additional reason why it
is appropriate to maintain a uniform classification within the area and
thus to reclassify the reservation areas of Indian country and any
other area where the EPA or a tribe has demonstrated that a tribe has
jurisdiction together with the balance of the nonattainment area. In
this particular case, we are proposing to determine, based on the
State's demonstration and current ambient air quality trends, that the
South Coast nonattainment area cannot practicably attain the 2006
PM2.5 standard by its applicable Moderate area attainment
date of December 31, 2015.
    In light of the considerations outlined above that support
retention of a uniformly-classified PM2.5 nonattainment
area, and our finding that it is impracticable for the area to attain
by the applicable attainment date, we propose to reclassify the areas
of Indian country within the South Coast nonattainment area as Serious
nonattainment for the 2006 PM2.5 standard.
    The effect of reclassification would be to lower the applicable
``major source'' threshold for purposes of the nonattainment new source
review program and the Title V operating permit program from its
current level of 100 tpy to 70 tpy (CAA sections 189(b)(3) and
501(2)(B)), thus subjecting more new or modified stationary sources to
these requirements. The reclassification may also lower the de minimis
threshold under the CAA's General Conformity requirements (40 CFR part
93, subpart B) from 100 tpy to 70 tpy. Under the General Conformity
requirements, Federal agencies bear the responsibility of determining
conformity of actions in nonattainment and maintenance areas that
require Federal permits, approvals, or funding. Such permits, approvals
or funding by Federal agencies for projects in these areas of Indian
country may be more difficult to obtain because of the lower de minimis
thresholds.
    Given the potential implications of the reclassification, the EPA
has contacted tribal officials to invite government-to-government
consultation on this rulemaking effort.\78\ The EPA specifically
solicits additional comment on this proposed rule from tribal
officials. We note that although eligible tribes may seek EPA approval
of relevant tribal programs under the CAA, none of the affected tribes
will be required to submit an implementation plan to address this
reclassification.
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    \78\ We sent letters to seven tribal officials regarding
government-to-government consultation on September 4, 2015 and
September 30, 2015.
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VII. Summary of Proposed Actions and Request for Public Comment

    Under CAA section 110(k)(3), the EPA is proposing to approve the
following elements of the 2012 PM2.5 Plan and 2015
Supplement submitted by California to address the CAA's Moderate area
planning requirements for the 2006 PM2.5 NAAQS in the South
Coast nonattainment area:
    1. The 2008 base year emissions inventories as meeting the
requirements of CAA section 172(c)(3);
    2. the reasonably available control measures/reasonably available
control technology demonstration as meeting the requirements of CAA
sections 172(c)(1) and 189(a)(1)(C);
    3. the reasonable further progress demonstration as meeting the
requirements of CAA section 172(c)(2);
    4. the demonstration that attainment by the Moderate area
attainment date of December 31, 2015 is impracticable as meeting the
requirements of CAA section 189(a)(1)(B)(ii); and
    5. SCAQMD's commitments to adopt and implement specific rules and
measures in accordance with the schedule provided in Chapter 4 of the
2012 PM2.5 Plan, as revised by Table F-1 of Attachment F of
the 2015 Supplement, to achieve the emissions reductions shown therein,
and to submit these rules and measures to ARB for transmittal to EPA as
a revision to the SIP, as stated on pp. 7-8 of SCAQMD Governing Board
Resolution 12-19.
    In addition, the EPA is proposing to approve the general conformity
budgets for NOX and VOC for years 2013-2030 listed in
Appendix III, p. III-2-53 of the 2012 PM2.5 Plan as meeting
the requirements of the CAA and the general conformity rule.
    Finally, pursuant to CAA section 188(b)(1), the EPA is proposing to
reclassify the South Coast PM2.5 nonattainment area,
including the reservation areas of Indian country and any other area
where the EPA or a tribe has demonstrated that a tribe has jurisdiction
within the South Coast area, as Serious nonattainment for the 2006
PM2.5 standard based on the agency's determination that the
South Coast area cannot practicably attain the standard by the Moderate
area attainment date of December 31, 2015. Upon final reclassification
as a Serious area, California will be required to submit, within 18
months after the effective date of the reclassification, provisions to
assure that BACM shall be implemented no later than 4 years after the
date of reclassification and to submit, within 3 years after the
effective date of reclassification or by December 31, 2018, which is
sooner, a Serious area plan that satisfies the requirements of part D
of title I of the Act. This plan must include a demonstration that the
South Coast area will attain the 2006 PM2.5 standard as
expeditiously as practicable but no later than December 31, 2019, or by
the most expeditious alternative date practicable and no later than
December 31, 2024, in accordance with the requirements of CAA sections
189(b) and 188(e).
    In addition, because the EPA is proposing to similarly reclassify
reservation areas of Indian country and any other area of Indian
country where EPA or a tribe has demonstrated that the

tribe has jurisdiction within the South Coast PM2.5
nonattainment area as Serious nonattainment for the 2006
PM2.5 standard, consistent with our proposed
reclassification of the surrounding non-Indian country lands, the EPA
has invited consultation with interested tribes concerning this issue.
We note that although eligible tribes may seek the EPA's approval of
relevant tribal programs under the CAA, none of the affected tribes
will be required to submit an implementation plan to address this
reclassification.
    We will accept comments from the public on these proposals for the
next 30 days. The deadline and instructions for submission of comments
are provided in the DATES and ADDRESSES sections at the beginning of
this preamble.

VI. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review, and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was
therefore not submitted to the Office of Management and Budget (OMB)
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under
the PRA because it does not contain any information collection
activities.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic
impact on a substantial number of small entities under the RFA. This
action will not impose any requirements on small entities. This
proposed action would approve State law as meeting Federal requirements
and would not impose additional requirements beyond those imposed by
State law. Additionally, the proposed rule would reclassify the South
Coast nonattainment area as Serious nonattainment for the 2006
PM2.5 NAAQS, and would not itself regulate small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate of $100 million or
more as described in UMRA, and does not significantly or uniquely
affect small governments. This proposed action would approve State law
as meeting Federal requirements and would not impose additional
requirements beyond those imposed by State law. Additionally, the
proposed action would reclassify the South Coast nonattainment area as
Serious nonattainment for the 2006 PM2.5 NAAQS, and would
not itself impose any federal intergovernmental mandate. The proposed
action would not require any tribes to submit implementation plans.

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.

F. Executive Order 13175: Coordination With Indian Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires the EPA to develop an accountable process to ensure
``meaningful and timely input by tribal officials in the development of
regulatory policies that have tribal implications.'' ``Policies that
have Tribal implications'' is defined in the Executive Order to include
regulations that have ``substantial direct effects on one or more
Indian tribes, on the relationship between the Federal government and
the Indian tribes, or on the distribution of power and responsibilities
between the Federal government and Indian Tribes.''
    Seven Indian tribes are located within the boundaries of the South
Coast nonattainment area for the 2006 PM2.5 NAAQS: The
Cahuilla Band of Indians, the Morongo Band of Cahuilla Mission Indians,
the Pechanga Band of Luiseno Mission Indians of the Pechanga
Reservation, the Ramona Band of Cahuilla, the San Manuel Band of
Serrano Mission Indians of the San Manuel Reservation, the Santa Rosa
Band of Cahuilla Indians, and the Soboba Band of Luiseno Indians.
    The SIP is not approved to apply on any Indian reservation land or
in any other area where EPA or an Indian tribe has demonstrated that a
tribe has jurisdiction. In those areas of Indian country, the rule does
not have tribal implications and will not impose substantial direct
costs on tribal governments or preempt tribal law as specified by
Executive Order 13175 (65 FR 67249, November 9, 2000).
    The EPA has concluded that this proposed rule might have tribal
implications for the purposes of Executive Order 13175, but would not
impose substantial direct costs upon the tribes, nor would it preempt
Tribal law. We note that only one of the tribes located in the South
Coast nonattainment area (the Pechanga Band of Luiseno Mission Indians
of the Pechanga Reservation) has requested eligibility to administer
programs under the CAA. The proposed rule would affect the EPA's
implementation of the new source review program because of the lower
``major source'' threshold triggered by reclassification (70 tons per
year for direct PM2.5 and precursors to PM2.5).
The proposed rule may also affect new or modified stationary sources
proposed in these areas that require Federal permits, approvals, or
funding. Such projects are subject to the requirements of EPA's General
Conformity rule, and Federal permits, approvals, or funding for the
projects may be more difficult to obtain because of the lower de
minimis thresholds triggered by reclassification.
    Given the potential implications, the EPA contacted tribal
officials during the process of developing this proposed rule to
provide an opportunity to have meaningful and timely input into its
development. On September 4, 2015, we sent letters to leaders of the
seven tribes with areas of Indian country in the South Coast
nonattainment area inviting government-to-government consultation on
the rulemaking effort. We requested that the tribal leaders, or their
designated consultation representatives, provide input or request
government-to-government consultation by October 4, 2015. We intend to
continue communicating with all seven tribes located within the
boundaries of the South Coast nonattainment area for the 2006
PM2.5 NAAQS as we move forward in developing a final rule.
The EPA specifically solicits additional comment on this proposed rule
from tribal officials.

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

    The EPA interprets Executive Order 13045 as applying only to those
regulatory actions that concern environmental health or safety risks
that the EPA has reason to believe may disproportionately affect
children, per the definition of ``covered regulatory action'' in
section 2-202 of the Executive Order. This proposed action is not
subject to Executive Order 13045 because it would approve a state
action implementing a federal standard, and reclassify the South Coast
nonattainment area as Serious

nonattainment for the 2006 PM2.5 NAAQS, triggering Serious
area planning requirements under the CAA. This proposed action 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 proposed action is not subject to Executive Order 13211,
because it is not a significant regulatory action under Executive Order
12866.

I. National Technology Transfer and Advancement Act

    This rulemaking does not involve technical standards.

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

    The EPA has determined that this action will not have potential
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it does not
affect the level of protection provided to human health or the
environment. This proposed action would only approve a state action
implementing a federal standard, and reclassify the South Coast
nonattainment area as Serious nonattainment for the 2006
PM2.5 NAAQS, triggering additional Serious area planning
requirements under the CAA.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Oxides of nitrogen, Particulate
matter, Reporting and recordkeeping requirements, Sulfur oxides,
Volatile organic compounds.

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

    Dated: September 30, 2015.
Jared Blumenfeld,
Regional Administrator, EPA Region 9.
[FR Doc. 2015-26315 Filed 10-19-15; 8:45 am]
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