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Friday, April 28, 2006

Part IV

Environmental Protection Agency

40 CFR Parts 51, 52 et al. Air Pollution Control—Transport of Emissions of Nitrogen Oxides (NO

) and Sulfur Dioxide (SO

); Final Rule

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25328

Federal Register

/Vol. 71, No. 82/Friday, April 28, 2006/Rules and Regulations

ENVIRONMENTAL PROTECTIONAGENCY40 CFR Parts 51, 52, 72, 73, 74, 78, 96,and 97

[EPA–HQ–OAR–2004–0076; FRL–8047–5]RIN 2060–AM99

Rulemaking on Section 126 PetitionFrom North Carolina To ReduceInterstate Transport of Fine ParticulateMatter and Ozone; FederalImplementation Plans To ReduceInterstate Transport of Fine ParticulateMatter and Ozone; Revisions to theClean Air Interstate Rule; Revisions tothe Acid Rain Program

AGENCY

Environmental ProtectionAgency (EPA).

ACTION

Notice of final rulemaking(NFR).

SUMMARY

Today, EPA is taking actionsto address the interstate transport of emissions of nitrogen oxides (NO

) andsulfur dioxide (SO

) that contributesignificantly to nonattainment andmaintenance problems with respect tothe national ambient air qualitystandards (NAAQS) for fine particulatematter (PM

2.5

) and 8-hour ozone. As onepart of today’s action, EPA is providingits final response to a petition submittedto EPA by the State of North Carolinaunder section 126 of the Clean Air Act(CAA). The petition requests that EPAfind that SO

and/or NO

emissionsfrom electric generating units (EGUs) in13 States are significantly contributingto PM

2.5

and/or 8-hour ozonenonattainment and maintenanceproblems in North Carolina, andrequested that EPA establish controlrequirements to prohibit suchsignificant contribution. The EPA isdenying the petition because, in today’saction, EPA is promulgating Federalimplementation plans (FIPs) for alljurisdictions covered by the Clean AirInterstate Rule (CAIR) to addressinterstate transport.The FIPs will regulate EGUs in theaffected States and achieve theemissions reductions requirementsestablished by the CAIR until Stateshave approved State implementationplans (SIPs) to achieve the reductions.As the control requirement for the FIPs,EPA is adopting the model trading rulesthat EPA provided in CAIR as a controloption for States, with minor changes toaccount for Federal rather than Stateimplementation.Today’s action also revises CAIR SIPmodel trading rules in order to addressthe interaction between the EPA-administered CAIR FIP tradingprograms being promulgated today andthe EPA-administered CAIR Statetrading programs that will be created byany State that elects to submit a SIPestablishing such a trading program tomeet the requirements of the CAIR. Inaddition, EPA is taking final action onour reconsideration of the definition of ‘‘EGU’’ as it relates to solid wasteincinerators.Today’s action also makes revisions tothe Acid Rain Program in order to makethe administrative appeals procedures,which currently apply to finaldeterminations by the Administratorunder the EPA-administered CAIR Statetrading programs, also apply to the EPA-administered trading programs underthe FIP action. In addition, we aremaking certain minor revisions to theAcid Rain Program that will apply to allaffected units.

DATES

This action is effective on June27, 2006.

ADDRESSES

The EPA has established adocket for this action under Docket IDNo. EPA–HQ–OAR–2004–0076. Alldocuments in the docket are listed onthe

http://www.regulations.gov

Website. Although listed in the index, someinformation is not publicly available,

e.g.,

confidential business information(CBI) or other information whosedisclosure is restricted by statute.Certain other material, such ascopyrighted material, is not placed onthe Internet and will be publiclyavailable only in hard copy form.Publicly available docket materials areavailable either electronically through

http://www.regulations.gov

orin hardcopy at the EPA Docket Center (AirDocket), EPA/DC, EPA West, RoomB102, 1301 Constitution Ave., NW.,Washington, DC. The Public ReadingRoom is open from 8:30 a.m. to 4:30p.m., Monday through Friday, excludinglegal holidays. The telephone numberfor the Public Reading Room is (202)566–1744 and the telephone number forthe Air Docket is (202) 566–1742.

FOR FURTHER INFORMATION CONTACT

Forgeneral questions concerning today’ssection 126 action, please contact CarlaOldham, U.S. EPA, Office of Air QualityPlanning and Standards, Air QualityPolicy Division, C504–05, ResearchTriangle Park, NC 27711, telephone(919) 541–3347, e-mail at

oldham.carla@epa.gov

.For generalquestions concerning today’s FIP action,please contact Tom Coda, U.S. EPA,Office of Air Quality Planning andStandards, Air Quality Policy Division,C539–01, Research Triangle Park, NC27711, telephone (919) 541–3037, e-mailat

coda.tom@epa.gov

.For legalquestions concerning the section 126action, please contact Steven Silverman,U.S. EPA, Office of General Counsel,Mail Code 2344A, 1200 PennsylvaniaAvenue, NW., Washington, DC 20460,telephone (202) 564–5523, e-mail at

silverman.steven@epa.gov

.For legalquestions concerning the FIP action,please contact Sonja Rodman, U.S. EPA,Office of General Counsel, Mail Code2344A, 1200 Pennsylvania Avenue,NW., Washington, DC 20460, telephone(202) 564–4097, e-mail at

rodman.sonja@epa.gov

.For questionsregarding the cap-and-trade programsand emissions budgets, please contactMeg Victor, U.S. EPA, Office of Atmospheric Programs, Clean AirMarkets Division, Mail Code 6204J,1200 Pennsylvania Avenue, NW.,Washington, DC 20460, telephone (202)343–9193, e-mail at

victor.meg@epa.gov

.For questions regarding the revisions tothe CAIR and Acid Rain Programs,please contact Dwight Alpern, U.S. EPA,Office of Atmospheric Programs, CleanAir Markets Division, Mail Code 6204J,1200 Pennsylvania Avenue, NW.,Washington, DC 20460, telephone (202)343–9151, e-mail at

alpern.dwight@epa.gov

SUPPLEMENTARY INFORMATION

I. Does This Action Apply to Me?

Categories and entities potentiallyregulated by this action include thefollowing:

CategoryNAICScode

Examples of potentially regulatedentitiesIndustry...........................................................................................221112 Fossil fuel-fired electric utility steam generating units.Federal government.......................................................................

221122 Fossil fuel-fired electric utility steam generating units owned bythe Federal government.State/local/Tribal government.........................................................

221122 Fossil fuel-fired electric utility steam generating units owned bymunicipalities.

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/Vol. 71, No. 82/Friday, April 28, 2006/Rules and Regulations

CategoryNAICScode

Examples of potentially regulatedentities921150 Fossil fuel-fired electric utility steam generating units in IndianCountry.

North American Industry Classification System.

Federal, State, or local government-owned and operated establishments are classified according to the activity in which they are engaged.

This table is not intended to beexhaustive, but rather provides a guidefor readers regarding entities likely to beregulated by this action. To determinewhether your facility is affected by thisaction, you should examine thedefinitions and applicability criteria in

§§

72.2, 72.6, 72.7, 72.8, and 74.2 forpurposes of the Acid Rain Programrevisions and

§§

97.102, 97.104, 97.105,97.202, 97.204, 97.205, 97.302, 97.304,and 97.305 for purposes of the FIPaction. If you have any questionsregarding the applicability of this actionto a particular entity, consult the personlisted in the preceding section under

FOR FURTHER INFORMATION CONTACT

II. Availability of Related Information

The EPA has conducted separaterulemakings that contain actions andinformation related to today

’

s action.The final

‘‘

Rule to Reduce InterstateTransport of Fine Particulate Matter andOzone (Clean Air Interstate Rule)

’’

waspublished on May 12, 2005 (70 FR25162) (see also proposal at 69 FR 4566, January 30, 2004; supplementalproposal at 69 FR 32684, June 10, 2004;and notice of data availability at 69 FR47828, August 6, 2004). The EPAsubsequently reconsidered severalaspects of the final CAIR (see 70 FR72268; December 2, 2005 and 70 FR77101; December 29, 2005) and is takingfinal action on reconsideration in aseparate action today. In addition, theEPA issued a proposal to includeDelaware and New Jersey in CAIR forPM

2.5

(70 FR 25408, May 12, 2005) andis finalizing that rulemaking today, alsoin a separate action. Documents relatedto the CAIR, including the actions onreconsideration and to include Delawareand New Jersey in CAIR for PM

2.5

, areavailable for inspection in docket EPA

–

OAR

–

2003

–

0053 at the address andtimes given above. The EPA hasestablished a website for the CAIR at

http://www.epa.gov/ cleanairinterstaterule

or more simply

http://www.epa.gov/cair/

which alsoincludes information on the section 126rulemaking. The rulemaking docket forthe CAIR contains information andanalyses that are relied upon in today

’

sactions. Therefore, EPA is including byreference the entire CAIR record forpurposes of the section 126 and FIPrulemakings.

III. Judicial Review

Under CAA section 307(b), judicialreview of this final action is availableonly by filing a petition for review inthe U.S. Court of Appeals for the Districtof Columbia Circuit on or before June27, 2006. Under CAA section307(d)(7)(B), only those objections to thefinal rule that were raised withspecificity during the period for publiccomment may be raised during judicialreview. Moreover, under CAA section307(b)(2), the requirements established by today

’

s final rule may not bechallenged separately in any civil orcriminal proceedings brought by EPA toenforce these requirements.Section 307(d)(7)(B)also provides amechanism for the EPA to convene aproceeding for reconsideration if thepetitioner demonstrates that it wasimpracticable to raise an objectionduring the public comment period or if the grounds for such objection aroseafter the comment period (but withinthe time for judicial review) and if theobjection is of central relevance to therule. Any person seeking to make sucha demonstration to EPA should submita Petition for Reconsideration, clearlylabeled as such, to the Office of theAdministrator, U.S. EPA, Room 3000,Ariel Rios Building, 1200 PennsylvaniaAve., Washington, DC 20460, with acopy to the Associate General Counselfor the Air and Radiation Law Office,Office of General Counsel, Mail Code2344A, U.S. EPA, 1200 PennsylvaniaAve., NW., Washington, DC 20460.

Outline

I. Background and Summary of RuleA. Summary of RuleB. General Background on PM

2.5

andOzone1. The PM

2.5

Problem2. The 8-Hour Ozone Problem3. Other Environmental Effects AssociatedWith SO

and NO

EmissionsC. What Is the Statutory and RegulatoryBackground for Today

’

s Action?1. What Is the

‘‘

Good Neighbor

’’

Provision?2. What Is the CAA Section 126 Provision?3. What Is EPA

’

s Previous Section 126Rulemaking?4. What Is the Clean Air Interstate Rule?5. What Are the Findings of Failure toSubmit for the Section 110(a)(2)(D)Plans?6. What Are the Petitions forReconsideration of the CAIR?D. Summary of North Carolina

’

s Section126 Petition1. What Sources Does the Petition Target?2. What Control Remedy Does the PetitionRequest?3. What Is the Technical Support for thePetition?E. What Is the Consent Decree on theSection 126 Rulemaking Schedule?II. What Is EPA

’

s Legal and AnalyticalApproach for the Section 126 Petition?III. What Is EPA

’

s Final Action on the Section126 Petition?A. What Is EPA

’

s Final Action WithRespect to the 8-Hour Ozone NAAQS?B. What Is EPA

’

s Final Action WithRespect to the PM

2.5

NAAQS?IV. What Is the Federal Implementation Planfor the CAIR?A. What Is the Legal Framework for theFIPs?B. What Is the Timing and Scope of theCAIR FIP Actions?C. What Are the FIP Control Measures?D. When and How Will EPA Remove theFIP Requirements if EPA Approves a SIPto Meet the CAIR?V. Emission Reduction Requirements for theCAIR FIPA. IntroductionB. Regionwide SO

and NO

CapsC. State SO

Emission BudgetsD. State NO

Annual and NO

OzoneSeason Emission BudgetsE. State NO

Annual ComplianceSupplement PoolVI. CAIR FIP NO

and SO

Cap-and-tradePrograms for EGUsA. Purpose of CAIR FIP NO

and SO

Cap-and-trade Programs and Relationship tothe CAIRB. Relationship of Emissions TradingPrograms to Section 126 Relief C. Abbreviated SIP Revisions CoveringElements of the CAIR FIP Cap-and-tradeProgramsD. Overall Structure of the CAIR FIP Cap-and-trade Programs1. SO

Annual Program2. NO

Annual Program3. NO

Ozone Season ProgramE. Sources Subject to the CAIR FIP Cap-and-trade ProgramsF. Allocation of NO

Emission Allowancesto Sources1. Schedule for Determining and RecordingNO

Allocations2. Method for Allocating NO

AllowancesG. Allocation of SO

Allowances toSourcesH. Allowance BankingI. Incentives for Early Reductions1. SO

Annual Program2. NO

Annual Program3. NO

Ozone Season Program J. Monitoring and Reporting RequirementsK. Interactions with Other CAA Programs

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Environmental Protection Agency: 06-2692

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