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Federal Register / Vol. 86, No. 125 / Friday, July 2, 2021 / Proposed Rules approved changes to the Part 2 rules most recently in a final approval dated July 1, 2019 84 FR 25180, and therefore proposes that Michigan has met this set of infrastructure SIP
requirements of section 110a2C
with respect to the 2015 ozone NAAQS.
3. PSD

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To satisfy the sub element regarding the PSD program required by CAA title I part C, an infrastructure SIP
submission should demonstrate that one or more air agencies have the authority to implement a comprehensive PSD
permit program under CAA title I part C, for all PSD-subject sources located in areas that are designated attainment or unclassifiable for one or more NAAQS.
The infrastructure SIP submission should also identify the existing SIP
provisions that govern the major source PSD program.
The evaluation of each states submission addressing the infrastructure SIP requirements of section 110a2C covers: i Enforcement of SIP measures; ii PSD
provisions that explicitly identify NOX
as a precursor to ozone in the PSD
program; iii identification of precursors to PM2.5 3 and identification of PM2.5 and PM10 4 condensables in the PSD program; iv PM2.5 increments in the PSD program; and, v greenhouse gas GHG permitting and the Tailoring Rule. 5
Sources in Michigan that install equipment that will emit ozone precursors are subject to permit-toinstall regulations under MAC Rules 336.1201 through 336.1209 and include consideration of VOCs and NOX. PSD
program regulations MAC Rules 336.2801 through R 336.2823 require any new major or modified source to undergo PSD review.6
3 PM
2.5 refers to particles with an aerodynamic diameter of less than or equal to 2.5 micrometers, also referred to as fine particles.
4 PM
10 refers to particles with an aerodynamic diameter of less than or equal to 10 micrometers.
5 In EPAs April 28, 2011 proposed rulemaking for infrastructure SIPs for the 1997 ozone and PM2.5
NAAQS, we stated that each states PSD program must meet applicable requirements for evaluation of all regulated NSR pollutants in PSD permits 76 FR
23757 at 23760. This view was reiterated in EPAs August 2, 2012 proposed rulemaking for infrastructure SIPs for the 2006 PM2.5 NAAQS 77
FR 45992 at 45998. In other words, if a state lacks provisions needed to adequately address NOX as a precursor to ozone, PM2.5 precursors, PM2.5 and PM10 condensables, PM2.5 increments, or the Federal GHG permitting thresholds, the provisions of section 110a2C requiring a suitable PSD
permitting program must be considered not to be met irrespective of the NAAQS that triggered the requirement to submit an infrastructure SIP, including the 2015 ozone NAAQS.
6 Effective February 16, 2017, EPA updated the modeling appendix at 40 CFR part 51, appendix W

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a. PSD Provisions That Explicitly Identify NOX as a Precursor to Ozone in the PSD Program EPAs Final Rule to Implement the 8-Hour Ozone National Ambient Air Quality StandardPhase 2; Final Rule to Implement Certain Aspects of the 1990 Amendments Relating to New Source Review and Prevention of Significant Deterioration as They Apply in Carbon Monoxide, Particulate Matter, and Ozone NAAQS; Final Rule for Reformulated Gasoline Phase 2 Rule was published on November 29, 2005.
Among other requirements, the Phase 2
Rule obligated states to revise their PSD
programs to explicitly identify NOX as a precursor to ozone 70 FR 71612 at 71679, 7169971700. This requirement was codified in 40 CFR 51.166.7. EPA
approved revisions to Michigans PSD
SIP reflecting these requirements on April 4, 2014 see 79 FR 18802, and therefore proposes that Michigan has met the set of infrastructure SIP
requirements of section 110a2C
with respect to the 2015 ozone NAAQS.
b. Identification of Precursors to PM2.5
and the Identification of PM2.5 and PM10
Condensables in the PSD Program On May 16, 2008 see 73 FR 28321, EPA issued the Final Rule on the Implementation of the New Source Review NSR Program for Particulate Matter Less than 2.5 Micrometers PM2.5 2008 NSR Rule. The 2008
NSR Rule finalized several new requirements for SIPs to address sources that emit direct PM2.5 and other pollutants that contribute to secondary PM2.5 formation. One of these requirements is for NSR permits to address pollutants responsible for the secondary formation of PM2.5, otherwise known as precursors. In the 2008 rule, EPA identified precursors to PM2.5 for the PSD program to be SO2 and NOX
unless the state demonstrates to the Administrators satisfaction or EPA
demonstrates that NOX emissions in an area are not a significant contributor to that areas ambient PM2.5
concentrations. The 2008 NSR Rule also specifies that VOCs are not considered to be precursors to PM2.5 in the PSD program unless the state demonstrates to the Administrators satisfaction or EPA demonstrates that emissions of VOCs in an area are significant contributors to that areas ambient PM2.5 concentrations.
82 FR 5182. EPA proposed approval of Michigan Part 9 rules 86 FR 15837 on March 24, 2021
incorporating the CFR update. The finalization of the rule update will dictate finalization of this element.

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The explicit references to SO2, NOX, and VOCs as they pertain to secondary PM2.5 formation are codified at 40 CFR
51.166b49ib and 40 CFR
52.21b50ib. As part of identifying pollutants that are precursors to PM2.5, the 2008 NSR Rule also required states to revise the definition of significant as it relates to a net emissions increase or the potential of a source to emit pollutants. Specifically, 40 CFR
51.166b23i and 40 CFR
52.21b23i define significant for PM2.5 to mean the following emissions rates: 10 tons per year tpy of direct PM2.5; 40 tpy of SO2; and 40 tpy of NOX
unless the state demonstrates to the Administrators satisfaction or EPA
demonstrates that NOX emissions in an area are not a significant contributor to that areas ambient PM2.5
concentrations. The deadline for states to submit SIP revisions to their PSD
programs incorporating these changes was May 16, 2011 see 73 FR 28321 at 28341.7
The 2008 NSR Rule did not require states to immediately account for gases that could condense to form particulate matter, known as condensables, in PM2.5
and PM10 emission limits in NSR
permits. Instead, EPA determined that states had to account for PM2.5 and PM10
condensables for applicability determinations and in establishing emissions limitations for PM2.5 and PM10 in PSD permits beginning on or after January 1, 2011. This requirement is codified in 40 CFR 51.166b49ia 7 EPA notes that on January 4, 2013, the U.S.
Court of Appeals for the D.C. Circuit, in Natural Resources Defense Council v. EPA, 706 F.3d 428
D.C. Cir., held that EPA should have issued the 2008 NSR Rule in accordance with the CAAs requirements for PM10 nonattainment areas Title I, part D, subpart 4, and not the general requirements for nonattainment areas under subpart 1 Natural Resources Defense Council v. EPA, No. 081250.
As the subpart 4 provisions apply only to nonattainment areas, EPA does not consider the portions of the 2008 rule that address requirements for PM2.5 attainment and unclassifiable areas to be affected by the courts opinion. Moreover, EPA does not anticipate the need to revise any PSD
requirements promulgated by the 2008 NSR rule in order to comply with the courts decision.
Accordingly, EPAs approval of Michigans infrastructure SIP as to elements C, DiII, or J
with respect to the PSD requirements promulgated by the 2008 implementation rule does not conflict with the courts opinion. The courts decision with respect to the nonattainment NSR requirements promulgated by the 2008 implementation rule also does not affect EPAs action on the present infrastructure action. EPA interprets the CAA to exclude nonattainment area requirements, including requirements associated with a nonattainment NSR program, from infrastructure SIP submissions due three years after adoption or revision of a NAAQS. Instead, these elements are typically referred to as nonattainment SIP or attainment plan elements, which would be due by the dates statutorily prescribed under subpart 2
through 5 under part D, extending as far as 10 years following designations for some elements.

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