40 CFR Part 49 - INDIAN COUNTRY: AIR QUALITY PLANNING AND MANAGEMENT

The Environmental Protection Agency (EPA) is promulgating amendments to the EPA's federal Prevention of Significant Deterioration (PSD) regulations to remove a date restriction from the Permit Rescission provision. Other than removing the date restriction, this final rule does not alter the criteria under which a new source review (NSR) permit may be rescinded. This final rule also clarifies that a rescission of a permit is not automatic and corrects an outdated cross-reference to another part of the PSD regulations. The EPA is also adding a corresponding Permit Rescission provision in the federal regulations that apply to major sources in nonattainment areas of Indian country.

The Environmental Protection Agency (EPA) is finalizing general permits for use in Indian country pursuant to the Federal Minor New Source Review (NSR) Program in Indian Country for new or modified minor sources in the following six source categories: concrete batch plants; boilers and emergency engines; stationary spark ignition engines; stationary compression ignition engines; graphic arts and printing operations; and sawmill facilities.

The U.S. Environmental Protection Agency (EPA) is proposing to revise a limitation on the rescission of stationary source preconstruction permits that is contained in the federal New Source Review (NSR) regulations. This proposal would amend the EPA's federal Prevention of Significant Deterioration (PSD) regulations to remove a date restriction from the current permit rescission provision. Other than removing the date restriction, the proposed rule is not intended to alter the circumstances under which an NSR permit may be rescinded. This proposal would also add a corresponding permit rescission provision in the federal regulations that apply to major sources in nonattainment areas of Indian country. This rule also proposes to correct an outdated cross-reference to another part of the regulations.

The Environmental Protection Agency (EPA) is finalizing a federal implementation plan (FIP) that applies to new true minor sources and minor modifications at existing true minor sources in the oil and natural gas production and natural gas processing segments of the oil and natural gas sector that are locating or expanding in Indian reservations or in other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated the tribe's jurisdiction. The FIP satisfies the minor source permitting requirement under the “Federal Minor New Source Review (NSR) Program in Indian Country” (referred to as the “Federal Indian Country Minor NSR rule”). For the oil and natural gas production and natural gas processing segments of the oil and natural gas sector, the FIP requires compliance with emission limitations and other requirements from certain federal emission standards as written at the time of construction or modification for compression ignition and spark ignition engines; process heaters; combustion turbines; fuel storage tanks; glycol dehydrators; completion of hydraulically fractured oil and natural gas wells; reciprocating and centrifugal compressors (except those located at well sites); pneumatic controllers; pneumatic pumps; storage vessels; and fugitive emissions from well sites, compressor stations and natural gas processing plants. The EPA is also finalizing several amendments to the Federal Indian Country Minor NSR rule, including adding new text regarding the purpose of the program, revising the program overview provision, revising certain provisions to incorporate compliance with the FIP, revising the applicability provision to establish that oil and natural gas sources are required to comply with the FIP unless they either opt to obtain a source-specific permit or are otherwise required to do so, and revising the source registration provision for oil and natural gas sources constructing under this FIP. Also, we are revising the applicability of the Federal Indian Country Minor NSR rule to comport with a court decision that addressed the scope of the EPA's jurisdiction to implement the Federal Indian Country Minor NSR rule in Indian country: Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014). This court decision has the same effect on the scope of the EPA's jurisdiction under the Federal Major New Source Review Program for Nonattainment Areas in Indian Country and so we are changing the applicability of the Federal Indian Country Nonattainment Major NSR rule as well.

This action announces that on October 26, 2015, EPA Region 10 and the Confederated Tribes of the Colville Reservation, entered into a Partial Delegation of Administrative Authority agreement to carry out certain day-to-day activities associated with implementation of the Federal Implementation Plan for the Colville Reservation (Colville FIP). A note of this partial delegation is being added to the Colville FIP in the Code of Federal Regulations.

The Environmental Protection Agency (EPA) is issuing three final amendments to the “Federal Minor New Source Review (NSR) Program in Indian Country” (we refer to this rule as the “Federal Indian Country Minor NSR rule”). We are amending the Federal Indian Country Minor NSR rule to extend the NSR minor source permitting deadline for true minor sources in the oil and natural gas sector from March 2, 2016, to October 3, 2016. We are also finalizing two amendments to conform the minor source registration deadline to the permitting deadline change.

On September 18, 2015, the Environmental Protection Agency (EPA) proposed three rules titled, “Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,” “Oil and Natural Gas Sector: Emission Standards for New and Modified Sources,” and “Review of New Sources and Modifications in Indian Country: Federal Implementation Plan for Managing Air Emissions from True Minor Sources Engaged in Oil and Natural Gas Production in Indian Country.” The EPA is extending the comment period on the three proposed rules that was scheduled to close on November 17, 2015. The EPA has received several letters from trade and business organizations, states and tribes requesting additional time to review and comment on the three proposed rule revisions.

The Environmental Protection Agency (EPA) is announcing three public hearings to be held for three proposed rules titled, “Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,” “Oil and Natural Gas Sector: Emission Standards for New and Modified Sources,” and “Review of New Sources and Modifications in Indian Country: Federal Implementation Plan for Managing Air Emissions from True Minor Sources Engaged in Oil and Natural Gas Production in Indian Country.” Two hearings will be held on September 23, 2015, simultaneously—one in Denver, CO, and one in Dallas, TX. One hearing will be on September 29, 2015, in Pittsburgh, PA.

The U.S. Environmental Protection Agency (EPA) is finalizing general permits for use in Indian country pursuant to the Federal Minor New Source Review (NSR) Program in Indian Country for new or modified minor sources in the following two source categories: Hot mix asphalt (HMA) plants; and stone quarrying, crushing, and screening (SQCS) facilities. The EPA is also finalizing permits by rule for use in Indian country for new or modified minor sources in three source categories: Auto body repair and miscellaneous surface coating operations; gasoline dispensing facilities (GDFs), except in California; and petroleum dry cleaning facilities. The EPA is also taking final action authorizing the use of general permits established under the program to create synthetic minor sources for the HMA and SQCS source categories.

The Environmental Protection Agency (EPA) is taking final action to revise the boundaries of the Southern California air quality planning areas to designate the reservation of the Pechanga Band of Luiseño Mission Indians of the Pechanga Reservation, California as a separate air quality planning area for the 1997 8-hour ozone National Ambient Air Quality Standard. The EPA is also taking final action to approve the Tribe's tribal implementation plan (“TIP”) for maintaining the 1997 8-hour ozone standard within the Pechanga Reservation through 2025 because it meets the Clean Air Act's and the EPA's requirements for maintenance plans. Lastly, based in part on the approval of the maintenance plan, the EPA is granting a request from the Tribe to redesignate the Pechanga Reservation nonattainment area to attainment for the 1997 8-hour ozone standard because the area meets the statutory requirements for redesignation under the Clean Air Act.

This document contains corrections to the final rule, which published in the Federal Register on March 22, 2013 (78 FR 17836). Errors in the amendatory instruction are identified and corrected in this action.

The Environmental Protection Agency (EPA) is proposing to revise the boundaries of the Southern California air quality planning areas to designate the reservation of the Pechanga Band of Luiseño Mission Indians of the Pechanga Reservation, California as a separate air quality planning area for the 1997 8-hour ozone National Ambient Air Quality Standard. The EPA is also proposing to approve the Tribe's tribal implementation plan for maintaining the 1997 ozone standard within the Pechanga Reservation through 2025 because it meets the Clean Air Act's and the EPA's requirements for maintenance plans. Lastly, based in part on the proposed approval of the maintenance plan, EPA is proposing to grant a request from the Tribe to redesignate the Pechanga Reservation ozone nonattainment area to attainment for the 1997 8-hour ozone standard because the area meets the statutory requirements for redesignation under the Clean Air Act.

The Environmental Protection Agency (EPA) is approving a Tribal implementation plan (TIP) submitted by the Swinomish Indian Tribal Community (SITC or the Tribe). The SITC TIP regulates open burning practices and establishes a Tribal regulatory program applicable to all persons within the exterior boundaries of the Swinomish Reservation (Reservation). The SITC TIP was submitted to the EPA on June 28, 2012, and supplementary submittals were received on September 24, 2013, November 18, 2013, and January 28, 2014. This action makes the approved portions of the SITC TIP federally enforceable under the Clean Air Act (CAA). Upon the effective date of this action, the SITC TIP will replace the Federal Implementation Plan (FIP) provisions that regulate open burning within the exterior boundaries of the Reservation.

The Environmental Protection Agency (EPA) is announcing that the period for providing public comments on the July 17, 2014, notice of proposed rulemaking for “General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country” is being extended by 30 days.

The Environmental Protection Agency (EPA) is promulgating a source-specific Federal Implementation Plan (FIP) requiring the Navajo Generating Station (NGS), a coal-fired power plant located on the Navajo Nation near Page, Arizona, to achieve reductions in oxides of nitrogen (NO X ) required under the Best Available Retrofit Technology (BART) provisions of the Clean Air Act (CAA) and the Regional Haze Rule (RHR). On February 5, 2013, EPA issued a proposed BART determination for NGS and an alternative to BART. In a supplemental proposal on October 22, 2013, EPA proposed to approve a new alternative plan, based on an agreement developed by a group of stakeholders known as the Technical Work Group (TWG). EPA is finalizing the alternative to BART described in our supplemental proposal. This rule is consistent with the TWG Agreement, including a lifetime cap in total emissions of NO X from NGS over 2009-2044 (2009-2044 NO X Cap). Our final action will achieve greater emissions reductions than BART and is expected to significantly reduce the impact of NGS on visibility at 11 mandatory Class I Federal areas. The operator of NGS must implement one of several alternative operating scenarios to achieve the necessary emission reductions to comply with the 2009-2044 NO X Cap.

EPA is issuing final amendments to the “Federal Minor New Source Review Program in Indian Country” (we refer to this new source review rule as the “Indian Country Minor NSR Rule”). We are amending the Indian Country Minor NSR Rule in two ways. First, we are extending the NSR minor source permitting deadline for true minor sources in the oil and natural gas sector from September 2, 2014, to March 2, 2016. Second, we are changing the registration deadline for new true minor sources in the oil and natural gas sector to conform with the changes to the NSR minor source permitting deadline. We are also eliminating a requirement for all true minor sources that begin operation before September 2, 2014, to obtain a minor NSR permit 6 months after EPA publishes a general permit because the provision no longer affects any source.

The purpose of this Advance Notice of Proposed Rulemaking (ANPR) is to solicit broad feedback on the most effective and efficient means of implementing the Environmental Protection Agency's (EPA) Indian Country Minor New Source Review program for sources in the oil and natural gas production segment of the oil and natural gas sector. In particular, this ANPR discusses potential new source permitting approaches to address emissions from proposed new and modified oil and natural gas production activities. One approach is a general permit, which could serve as a streamlined permitting approach for addressing emissions from new and modified minor sources and minor modifications at major sources under the Indian Country Minor NSR rule. Another approach is a Federal Implementation Plan, which could address emissions from new and modified minor sources and minor modifications at major sources. Other possible approaches include a permit by rule, which is another streamlined permitting approach. The EPA is requesting comments on all available new source permitting approaches and will take this feedback into consideration in developing a notice of proposed rulemaking for this sector under the Indian Country Minor NSR program. In addition, while the focus of this ANPR is on permitting approaches for proposed new oil and natural gas production activities, the EPA believes that managing emissions from existing oil and natural gas sources in Indian country would result in greater consistency with surrounding state requirements. Addressing existing sources may be particularly important given the significant activity associated with the sector in Indian country and the resultant need to protect public health, balanced with tribes' inherent sovereignty and interest in promoting economic development. If the EPA decides to address existing oil and natural gas production sources, then we will be interested in considering comments regarding whether a FIP should be the mechanism used to establish permitting requirements for new and existing sources, especially in areas where surrounding states regulate existing sources.

The Environmental Protection Agency (EPA) is issuing final amendments to the federal minor New Source Review (NSR) program in Indian country. We refer to this NSR rule as the “federal Indian country minor NSR program.” We are amending this rule in two ways. First, we are expanding the list of emissions units and activities that are exempt from the federal Indian country minor NSR program by adding several types of low-emitting units and activities. Second, we have clarified construction-related terms by defining “commence construction” and “begin construction” to better reflect the regulatory requirements associated with construction activities. We believe both of these changes will simplify the program, and result in less burdensome implementation without detriment to air quality in Indian country. Finally, we have reconsidered the advance notification period for relocation of a true minor source in response to a petition on the rule from the American Petroleum Institute, the Independent Petroleum Association of America and America's Natural Gas Alliance, but we are not changing that provision.

The EPA is proposing to approve a Tribal implementation plan (TIP) submitted by the Swinomish Indian Tribal Community (SITC or the Tribe). The TIP was submitted to the EPA on June 28, 2012, and supplementary submittals were received on September 24, 2013, November 18, 2013, and January 28, 2014. The TIP establishes regulations for open burning that will apply to all persons within the exterior boundaries of the Swinomish Reservation (the Reservation). The EPA approved the SITC for treatment in the same manner as a State (TAS) to regulate open burning on the Swinomish Reservation under the Clean Air Act (CAA or the Act) on February 16, 2010. This action proposes to federally approve the TIP. If the EPA finalizes this approval, the provisions of the TIP would become federally enforceable. Upon the effective date of a final action to approve the TIP, the SITC's open burning TIP would replace the Federal Implementation Plan (FIP) provisions regulating open burning within the exterior boundaries of the Swinomish Reservation.

The EPA published in the Federal Register on January 14, 2014 (79 FR 2546), the proposed rule, “General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country.” The EPA is announcing a public hearing date for the proposed rule.

The Environmental Protection Agency (EPA) is proposing general permits for use in Indian country pursuant to the Indian Country Minor New Source Review (NSR) rule for new or modified minor sources in the following five source categories: Hot mix asphalt (HMA) plants; stone quarrying, crushing, and screening (SQCS) facilities; auto body repair and miscellaneous surface coating operations; gasoline dispensing facilities (GDFs); and petroleum dry cleaning facilities. In the alternative, the EPA is also proposing permits by rule for use in Indian country for new or modified minor sources in three of the source categories: Auto body repair and miscellaneous surface coating operations; GDFs; and petroleum dry cleaning facilities. The EPA is also proposing certain changes to the Indian Country Minor NSR rule. The proposed changes include: Extending the deadline by when true minor sources in the oil and gas sector must receive minor source NSR permits; and allowing general permits and permits by rule for specific categories to create synthetic minor sources.

On February 5, 2013, EPA published its proposed source-specific Federal Implementation Plan (FIP) requiring the Navajo Generating Station (NGS), located on the Navajo Nation, to reduce emissions of oxides of nitrogen (NO X ) under the Best Available Retrofit Technology (BART) provision of the Clean Air Act (CAA or Act). EPA proposed the BART FIP to reduce visibility impairment caused by NGS at 11 National Parks and Wilderness Areas. EPA's proposed FIP included: (1) A proposed BART determination; (2) A proposed “better than BART” alternative that achieves greater reasonable progress towards the national visibility goals than BART; and (3) a framework for evaluating additional alternatives to BART. This framework for evaluating additional alternatives was included in the proposal due to the unique purpose and history of NGS and the numerous stakeholder interests in it. On March 19, 2013 and June 19, 2013, EPA provided two extensions of the public comment period based on requests of several stakeholders who were actively working to develop an alternative to BART. On July 26, 2013, a group of stakeholders, known as the Technical Work Group (TWG), submitted to EPA their suggested alternative to BART (the “TWG Alternative”). The TWG Alternative establishes a lifetime cap in NO X emissions over 2009-2044 (the 2009-2044 NO X Cap) that is equivalent to the cumulative NO X emissions over 2009-2044 that NGS would emit under EPA's proposed BART determination of 0.055 lb/MMBtu achieved within five years of the final rule. Due to on-going lease and ownership uncertainties, the operators of NGS cannot yet commit to a single course of action for maintaining emissions below the 2009-2044 NO X Cap. The TWG Alternative therefore includes several alternative operating scenarios for meeting the 2009-2044 NO X Cap. EPA did not participate in the TWG or assist in developing the TWG Alternative, and has independently evaluated the TWG Alternative to determine if it meets the requirements of the CAA and the Regional Haze Rule (RHR). In this action, EPA is proposing to determine that the TWG Alternative is “better than BART” because maintaining emissions below the 2009-2044 NO X Cap, as provided in the TWG Alternative, achieves greater reasonable progress than EPA's proposed BART determination towards the national visibility goal. EPA is accepting comment concurrently on today's Supplemental Proposal and our proposal from February 5, 2013.

On August 24, 2012, EPA promulgated a Federal Implementation Plan (FIP) to implement the Best Available Retrofit Technology (BART) requirement of the Regional Haze Rule for the Four Corners Power Plant (FCPP), which is located on the Navajo Nation Indian Reservation. Included in the FIP was a requirement that by July 1, 2013, Arizona Public Service (APS), co-owner and operator of FCPP must notify EPA of its selected BART compliance strategy. On June 19, 2013, APS requested that EPA extend the notification date from July 1 to December 31, 2013, due to new uncertainties related to the potential deregulation of the retail electricity market in Arizona that complicate its decision for selecting a BART compliance option. In response to this request, on July 11, 2013, EPA proposed to extend the notification date, from July 1, 2013 to December 31, 2013. EPA did not receive any comments during the 30-day public comment period for the proposed action. EPA received one comment that was emailed to EPA on August 13, 2013, one day after the close of the comment period. We are providing a response to the late comment, however the information in the late comment did not change the basis or justification for our proposal to extend the notification date. Therefore, EPA is taking final action to extend the notification date in the FIP from July 1, 2013 to December 31, 2013.

On February 5, 2013, EPA proposed a Best Available Retrofit Technology (BART) determination for oxides of nitrogen (NO X ) for the Navajo Generating Station (NGS), located on the Navajo Nation, and provided a three-month period to accept public comments that was scheduled to close on May 6, 2013. At the request of interested stakeholders, EPA extended the comment period on two occasions, first on March 19, 2013, and again on July 9, 2013. The comment period was scheduled to close October 4, 2013. Additionally, on June 19, 2013, EPA announced our intention to hold five public hearings to accept written and oral comment on our proposed BART determination for NGS. On July 26, 2013, a group of stakeholders, known as the Technical Work Group (TWG), submitted its recommendation for an additional BART Alternative to EPA for consideration (TWG Alternative). EPA is in the process of evaluating this alternative. Because EPA has not yet announced the schedule for the public hearings, and because EPA is still evaluating the TWG Alternative and may supplement our February 5, 2013 proposal, EPA is extending the comment period an additional three months. EPA intends to hold the public hearings prior to the close of this extended comment period and to announce the schedule shortly.

On August 24, 2012, EPA took final action to promulgate a Federal Implementation Plan (FIP) to implement the Best Available Retrofit Technology (BART) requirement of the Regional Haze Rule for the Four Corners Power Plant (FCPP), located on the Navajo Nation. EPA's final action required the owners of FCPP to choose between two strategies for compliance: compliance with the emission limits in EPA's final BART determination; or compliance with an alternative to BART, originally put forth by the owners of FCPP, that included closure of Units 1, 2, and 3 at FCPP and installation of new air pollution controls to meet BART limits on Units 4 and 5. EPA's final action required the owners of FCPP to provide notification to EPA by July 1, 2013, of its selection of which BART compliance strategy it would implement at FCPP. On June 19, 2013, Arizona Public Service (APS), the operator and a co-owner of FCPP, requested that EPA extend the notification date from July 1 to December 31, 2013, due to new uncertainties that complicate its decision related to BART compliance. These uncertainties result from a recent decision by the Arizona Corporation Commission to explore retail competition of the electricity market in Arizona. Because the basis provided by APS for an extended notification date is reasonable and justified given the uncertainties in the electrical market in Arizona, EPA is proposing to extend the date by which APS must notify EPA of its BART compliance strategy, from July 1, 2013 to December 31, 2013. EPA is not proposing to amend any other requirements in the FIP for FCPP.

On February 5, 2013, EPA proposed a Best Available Retrofit Technology (BART) determination for oxides of nitrogen (NO X ) for the Navajo Generating Station (NGS), located on the Navajo Nation, and provided a 3-month period for public comments, to close on May 6, 2013. The Navajo Nation, Gila River Indian Community, and other affected stakeholders requested a 90-day extension of the comment period to allow time for stakeholders to develop an alternative to EPA's proposed BART determination that achieves greater reasonable progress. On March 19, 2013, EPA extended the close of the public comment period to August 5, 2013. On June 10, 2013, EPA signed a notice, published in the Federal Register on June 19, 2013, of our intent to hold five public hearings in the state of Arizona. On June 20, 2013, Salt River Project (SRP), the operator and co-owner of NGS, submitted a letter on behalf of six stakeholders, including the Navajo Nation and Gila River Indian Community, describing the development of a stakeholder alternative, and requesting another extension of the comment period to allow the stakeholders additional time to finalize their alternative and submit it to EPA for consideration in the rulemaking process. EPA is extending the comment period for this proposed rulemaking by 60 days to October 4, 2013.

On February 5, 2013, EPA proposed a Best Available Retrofit Technology (BART) determination for emissions of oxides of nitrogen (NO X ) from the Navajo Generating Station (NGS), located on the Navajo Nation. EPA provided a three-month period for public comments, to close on May 6, 2013. The Navajo Nation, Gila River Indian Community, and other affected stakeholders requested a 90-day extension of the comment period to allow time for stakeholders to develop an alternative to EPA's proposed BART determination that achieves greater reasonable progress. On March 19, 2013, EPA extended the close of the public comment period to August 5, 2013. EPA is providing notice of our intent to hold five public hearings to accept written and oral comments on the proposed BART determination for NGS.

The EPA is proposing three changes to the New Source Review (NSR) program for minor sources and minor modifications at major sources in Indian country, which we refer to as the “Tribal minor NSR program.” First, we propose to expand the list of emissions units and activities that are exempt from the Tribal minor NSR program by adding several types of low-emitting units and activities. Second, we propose to more clearly define the term “commence construction” and add the term “begin construction” to better reflect the regulatory requirements associated with construction activities. We believe both of these proposed changes would simplify the program, resulting in less burdensome implementation without detriment to air quality in Indian country. Lastly, we are reconsidering the advance notification period for relocation of a true minor source in response to a petition received on the final Tribal NSR rule from the American Petroleum Institute, the Independent Petroleum Association of America and America's Natural Gas Alliance.

The EPA is taking final action to promulgate a Reservation-specific Federal Implementation Plan in order to regulate emissions from oil and natural gas production facilities located on the Fort Berthold Indian Reservation in North Dakota. The Federal Implementation Plan includes basic air quality regulations for the protection of communities in and adjacent to the Fort Berthold Indian Reservation. The Federal Implementation Plan requires owners and operators of oil and natural gas production facilities to reduce emissions of volatile organic compounds emanating from well completions, recompletions, and production and storage operations. This Federal Implementation Plan will be implemented by the EPA, or a delegated tribal authority, until replaced by a Tribal Implementation Plan. The EPA proposed a Reservation-specific Federal Implementation Plan concurrently with an interim final rule on August 15, 2012. This final Federal Implementation Plan replaces the interim final rule in all intents and purposes on the effective date of the final rule. The EPA is taking this action pursuant to the Clean Air Act (CAA).

On February 5, 2013, the Environmental Protection Agency (EPA) proposed a source-specific federal implementation plan (FIP) requiring the Navajo Generating Station (NGS), located on the Navajo Nation, to reduce emissions of oxides of nitrogen (NO X ) under the Best Available Retrofit Technology (BART) provision of the Clean Air Act (CAA or Act) in order to reduce visibility impairment resulting from NGS at 11 National Parks and Wilderness Areas. EPA provided a 90-day public comment period for the proposed rule that is scheduled to close on May 6, 2013. The Navajo Nation and other stakeholders have submitted requests to extend the comment period an additional 90 days to allow time for interested parties to explore alternatives to BART that provide additional flexibility and also ensure greater reasonable progress than would be achieved under BART. In today's action, EPA is extending the comment period an additional 90 days.

The Environmental Protection Agency (EPA) is proposing a source-specific federal implementation plan (FIP) requiring the Navajo Generating Station (NGS), located on the Navajo Nation, to reduce emissions of oxides of nitrogen (NO X ) under the Best Available Retrofit Technology (BART) provision of the Clean Air Act (CAA or Act) in order to reduce visibility impairment resulting from NGS at 11 National Parks and Wilderness Areas. NGS, which was built over 35 years ago, is the largest coal-fired power plant in the West in terms of generating capacity. It is central to the economies of the Navajo Nation and Hopi Tribe and supplies power to the states of Arizona, Nevada, and California. Electricity produced by NGS is also used to power the Central Arizona Project, which supplies surface water to three counties and numerous Indian tribes in Arizona. NGS is projected to continue operating at least until 2044. EPA is proposing to require NGS to achieve a nearly 80 percent reduction of its current overall NO X emission rate. Our analysis indicates that installation of controls to achieve this reduction would result in significant visibility improvement that is well-balanced with the cost of those controls. For a number of reasons, including the importance of NGS to numerous Indian tribes located in Arizona and the federal government's reliance on NGS to meet the requirements of water settlements with several tribes, EPA is proposing an alternative to BART that would provide flexibility to NGS in the schedule for the installation of new control equipment. We also describe other compliance schedules for consideration and comment. We recognize that there may be other approaches that could result in equivalent or better visibility benefits over time and that there may be changes in energy demand, supply or other developments over the next several decades that may change electricity generation on the Navajo Nation. EPA encourages a robust public discussion of our proposed BART determination and alternative, the additional alternatives described herein, and other possible approaches. EPA is prepared to issue a supplemental proposal if approaches other than the proposed BART determination or proposed alternative articulated in this notice are identified as satisfying the requirements of the Clean Air Act and meeting the needs of the stakeholders. EPA is committed to continuing to engage with stakeholders to develop a final FIP that maintains benefits to tribes and the regional economy while improving visibility in many of our nation's most treasured National Parks and Wilderness Areas.

The EPA is providing notice that it has responded to a petition for reconsideration and a request for an administrative stay of certain provisions of the rule titled, “Review of New Sources and Modifications in Indian Country” published on July 1, 2011. The EPA received letters dated August 30, 2011, and November 4, 2011, petitioning for reconsideration of various aspects of the minor new source review (NSR) rule (the Petitions) and one provision of the nonattainment major NSR rule pursuant to the Clean Air Act (CAA) from the American Petroleum Institute (API), the Independent Petroleum Association of America (IPAA) and America's Natural Gas Alliance (ANGA) (collectively, the Petitioners). In the letter dated August 30, 2011, the Petitioners asked, among other things, that the EPA reconsider the synthetic minor source provisions of the minor NSR rule and requested that the EPA stay the effective date of the minor NSR rule as it relates to synthetic minor sources pending its reconsideration. In the letter dated November 4, 2011, the Petitioners asked for reconsideration of several aspects of the minor NSR rule and one aspect of the nonattainment major NSR rule. The EPA considered the Petitions, including the request for an administrative stay, along with information contained in the rulemaking docket, in reaching a decision on the Petitions generally and the request for an administrative stay specifically. In letters to the Petitioners dated December 19, 2012, the EPA Administrator, Lisa P. Jackson, expressed her intent to grant reconsideration of several aspects of the Petitions and denied reconsideration of several other aspects raised in the Petitions, including the request for administrative stay. She took no action at this time with respect to several other issues raised in the Petitions. The denials of reconsideration and of the request for an administrative stay constitute final agency action.

The Environmental Protection Agency (EPA) is promulgating a source-specific Federal Implementation Plan (FIP) requiring the Four Corners Power Plant (FCPP), a coal-fired power plant located on the Navajo Nation near Farmington, New Mexico, to achieve emissions reductions required by the Clean Air Act's (CAA) Best Available Retrofit Technology (BART) provision. In this final action, EPA is requiring FCPP to reduce emissions of oxides of nitrogen (NO X ) and is setting emission limits for particulate matter (PM) based on emission rates already achieved at FCPP. These pollutants contribute to visibility impairment in the numerous mandatory Class I Federal areas surrounding FCPP. For NO X emissions, EPA is requiring FCPP to meet a plant-wide emission limit of 0.11 lb/MMBtu on a rolling 30-day heat input-weighted average. This represents an 80 percent reduction from the current NO X emission rate and is expected to provide significant improvement in visibility. EPA is also finalizing an alternative emission control strategy that gives the owners of FCPP the option to close Units 1-3 and install controls on Units 4 and 5 to each meet an emission limit of 0.098 lb/MMBtu, based on a rolling average of 30 successive boiler operating days. For PM, EPA is requiring Units 4 and 5 at FCPP to meet an emission limit of 0.015 lb/MMBtu, and retaining the existing 20 percent opacity limit. These PM limits are achievable through the proper operation of the existing baghouses. EPA is also requiring FCPP to comply with a 20 percent opacity limit on its coal and material handling operations.