Revisions of Standards of Performance for New and Existing Stationary Sources; Electric Utility Steam Generating Units; Federal Plan Requirements for Clean Air Mercury Rule; and Revisions of Acid Rain Program Rules, 77100-77147 [E6-21573]
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Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 60, 62, 72, and 78
[EPA–HQ–OAR–2006–0905; FRL–8255–1]
RIN 2060–AN98
Revisions of Standards of
Performance for New and Existing
Stationary Sources; Electric Utility
Steam Generating Units; Federal Plan
Requirements for Clean Air Mercury
Rule; and Revisions of Acid Rain
Program Rules
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
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SUMMARY: In this action, EPA proposes
a Federal Plan to implement Clean Air
Act (CAA) section 111 mercury (Hg)
standards of performance for new and
existing coal-fired electric utility steam
generating units (Utility Unit or EGU)
located in States or Indian Country
covered by the Clean Air Mercury Rule
(CAMR) which do not have EPA
approved and currently effective State
plans. The EPA will not take final action
on the proposed Federal Plan until EPA
either finds that a State has failed to
timely submit a plan or disapproves a
submitted plan. Any final Federal Plan
is expected to serve primarily to
temporarily fill a regulatory gap in
circumstances where either a State fails
to timely submit a plan or EPA
disapproves a submitted plan as, in
either case, States will be free to submit
an approvable plan after promulgation
of the Federal Plan and upon approval
of the State Plan by EPA, the Federal
Plan will no longer apply to coal-fired
Utility Units covered by the State Plan.
This action also proposes certain
revisions to both the CAMR State Plan
model cap-and-trade rule (in order to
make it compatible with the Federal
Plan cap-and-trade rule and to make
technical corrections) and the Acid Rain
Program regulations (in order to
simplify the provision concerning
alternate designated representatives and
to make the administrative appeals
process applicable to the decisions of
the Administrator under the State Plan
and Federal Plan cap-and-trade rules).
DATES: Comments. Comments on this
proposal must be received on or before
February 20, 2007. A public hearing will
be held in Washington, DC prior to the
end of the public comment period. EPA
will publish a separate Federal Register
notice announcing the date, location,
and time for the public hearing. Please
refer to SUPPLEMENTARY INFORMATION for
additional information on the public
hearing.
Submit your comments,
identified by Docket ID Number EPA–
HQ–OAR–2006–0905, by one of the
following methods:
A. Federal Rulemaking Portal: https://
www.regulations.gov. Follow the on-line
instructions for submitting comments.
B. E-mail: A-AND-R-Docket@epa.gov.
C. Mail: Air Docket, ATTN: Docket
Number EPA–HQ–OAR–2006–0905,
Environmental Protection Agency, Mail
Code: 6102T, 1200 Pennsylvania Ave.,
NW., Washington, DC 20460.
D. Hand Delivery: EPA Docket Center,
1301 Constitution Avenue, NW., Room
3334, Washington, DC. Such deliveries
are only accepted during the Docket’s
normal hours of operation, and special
arrangements should be made for
deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA Docket Number
EPA–HQ–OAR–2006–0905. EPA’s
policy is that all comments received
will be included in the public docket
without change and may be made
available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through www.regulations.gov
or e-mail. The www.regulations.gov
Web site is an ‘‘anonymous access’’
system, which means EPA will not
know your identity or contact
information unless you provide it in the
body of your comment. If you send an
e-mail comment directly to EPA without
going through www.regulations.gov
your e-mail address will be
automatically captured and included as
part of the comment that is placed in the
public docket and made available on the
Internet. If you submit an electronic
comment, EPA recommends that you
include your name and other contact
ADDRESSES:
NAICS
code 1
Category
Industry ..........................................................................................
Federal Government .....................................................................
2 221122
State/local/Tribal government .......................................................
2 221122
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information in the body of your
comment and with any disk or CD–ROM
you submit. If EPA cannot read your
comment due to technical difficulties
and cannot contact you for clarification,
EPA may not be able to consider your
comment. Electronic files should avoid
the use of special characters, any form
of encryption, and be free of any defects
or viruses.
Docket: All documents in the docket
are listed in the www.regulations.gov
index. Although listed in the index,
some information is not publicly
available, i.e., CBI or other information
whose disclosure is restricted by statute.
Certain other material, such as
copyrighted material, is not placed on
the Internet and will be publicly
available only in hard copy form.
Publicly available docket materials are
available either electronically in
www.regulations.gov or in hard copy at
the EPA Docket Center, EPA West,
Room 3334, 1301 Constitution Avenue,
NW., Washington, DC. The Public
Reading Room is open from 8:30 a.m. to
4:30 p.m., Monday through Friday,
excluding legal holidays. The telephone
number for the Public Reading Room is
(202) 566–1744, and the telephone
number for the Air Docket is (202) 566–
1742.
For
information concerning this proposed
CAMR Federal Plan as well as
Integrated Planning Model (IPM)
analyses performed in developing the
final CAMR, contact Meg Victor,
Program Development Branch, Clean
Air Markets Division (MC 6204J), EPA,
Washington, DC 20460; telephone
number (202) 343–9193; fax number
(202) 343–2359; electronic mail address:
victor.meg@epa.gov.
For information concerning all other
analyses performed in developing the
final CAMR, contact Mr. William
Maxwell, Energy Strategies Group,
Sector Policies and Programs Division
(Mail Code D243–01), EPA, Research
Triangle Park, North Carolina 27711;
telephone number (919) 541–5430; fax
number (919) 541–5450; electronic mail
address: maxwell.bill@epa.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Regulated Entities. Categories and
entities potentially regulated by this
action include the following:
Examples of potentially regulated entities
Fossil fuel-fired electric utility steam generating units.
Fossil fuel-fired electric utility steam generating units owned by
the Federal government.
Fossil fuel-fired electric utility steam generating units owned by
municipalities.
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Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
NAICS
code 1
Category
921150
1 North
77101
Examples of potentially regulated entities
Fossil fuel-fired electric utility steam generating units in Indian
country.
American Industry Classification System.
State, or local government-owned and operated establishments are classified according to the activity in which they are engaged.
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2 Federal,
This table is not intended to be
exhaustive, but rather provides a guide
for readers regarding entities likely to be
regulated by this action. This table lists
examples of the types of entities EPA is
now aware could potentially be
regulated by this action. Other types of
entities not listed could also be affected.
To determine whether your facility,
company, business, organization, etc., is
regulated by this action, you should
examine the applicability criteria in 40
CFR 60.45Da of the final new source
performance standards (NSPS)
amendments and 40 CFR 60.24(h) of the
final CAMR. If you have questions
regarding the applicability of this action
to a particular entity, consult your State
or local agency (or EPA Regional Office).
World Wide Web. In addition to being
available in the docket, an electronic
copy of this action will also be available
on the World Wide Web through EPA’s
Office of Air and Radiation. Following
signature by the Administrator, a copy
of this action will be posted on the
CAMR page at https://www.epa.gov/
camr.
Public Hearing. A public hearing will
be held in Washington, DC prior to the
end of the public comment period. EPA
will publish a future Federal Register
notice announcing the details of the
public hearing including the time, date,
and location, and will announce the
public hearing on EPA’s Web site for
this rulemaking at https://www.epa.gov/
CAMR.
Because the hearing will be held at a
U.S. Government facility, everyone
planning to attend should be prepared
to show valid picture identification to
the security staff in order to gain access
to the meeting room. Oral testimony
will be limited to 5 minutes per
commenter. The EPA encourages
commenters to provide written versions
of their oral testimonies either
electronically (on computer disk or CD–
ROM) or in paper copy. Verbatim
transcripts and written statements will
be included in the rulemaking docket.
The public hearing will provide
interested parties the opportunity to
present data, views, or arguments
concerning the proposed rule. The EPA
may ask clarifying questions during the
oral presentations, but will not respond
to the presentations or comments at that
time. Written statements and supporting
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information submitted during the
comment period will be considered
with the same weight as any oral
comments and supporting information
presented at a public hearing.
Outline. The information presented in
this preamble is organized as follows:
I. Background
A. Summary of This Action
B. Regulatory Background of CAMR
C. State Plan Requirements
II. Federal Plan Process
A. Legal Authority for Federal Plan
B. Implementation of Federal Plan
C. Timing of Federal Plan Action
D. Federal Plan Control Measures
E. National Mercury Budget and
Compliance Dates
F. State and Indian Country Emission
Budgets
III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg Capand-Trade Program
B. Sources Affected Under the Federal Capand-Trade Rule
C. Allocation of Emission Allowances
D. Allowance Banking
E. Source-Level Emissions Monitoring and
Reporting Requirements
F. Compliance and Penalties
G. Elements of the Federal Hg Trading
Program That Differ From the State
Model Hg Trading Program
IV. Proposed Revisions of the CAMR State
Model Cap-and-Trade Program Rule
V. Proposed Revisions of the Acid Rain
Program Regulations
VI. Units Subject to the CAMR Federal Plan
and New Source Performance Standards
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory
Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
I. National Technology Transfer and
Advancement Act
J. Executive Order 12898: Federal Actions
To Address Environmental Justice in
Minority Populations and Low-Income
Populations
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I. Background
A. Summary of This Action
On May 18, 2005, EPA finalized
CAMR and established standards of
performance for Hg for new and existing
coal-fired electric utility steam
generating units (Utility Units or EGUs).
(The standards of performance for
existing Utility Units are in the form of
emission guidelines which do not apply
to individual sources until they are
implemented through an EPA approved
State plan or a promulgated Federal
plan.) (See 70 FR 28606.) CAMR
established a mechanism by which Hg
emissions from new and existing coalfired Utility Units are capped at
specified, nation-wide levels. A first
phase cap of 38 tpy becomes effective in
2010, and a second phase cap of 15 tpy
becomes effective in 2018. EPA then set
State level emission caps that States
must meet and developed an emissions
cap-and-trade program States can use to
meet these caps. State plans to
implement and enforce these standards
of performance were due to EPA by
November 17, 2006.1 Under 40 CFR
60.27(b), the Administrator must
approve or disapprove State Plans
within 4 months of the November 17,
2006 submission deadline.
CAA section 111 requires States, and
CAA section 301(d) and the Tribal Air
Rule, 40 CFR part 49, allow Tribes
granted treatment as States (TAS), with
existing coal-fired Utility Units to
submit plans to EPA that implement
and enforce the standards of
performance. The CAMR itself requires
States to submit a plan for addressing
Hg emissions from new Utility Units
even if there are no existing Utility
Units in the State.
CAA section 111(d)(2) grants the
Administrator the same authority to
prescribe a plan for a State in cases
where the State fails to submit a
satisfactory plan as he would have
under section 110(c) of the CAA in the
case of a State’s failure to submit an
1 In a separate Federal Register notice entitled
‘‘Notice of Finding that Certain States Did Not
Submit Clean Air Mercury Rule (CAMR) State Plans
for New and Existing Electric Utility Steam
Generating Units and Status of Submission of Such
Plans,’’ EPA made findings that certain States did
not submit CAMR State Plans by the November 17,
2006 deadline and otherwise provided notice of the
status of State Plan submissions.
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implementation plan. Section 60.27 of
40 CFR part 60 directs the
Administrator to promptly prepare and
publish proposed regulations for a State
if the State fails to submit a plan by the
prescribed deadline or the
Administrator disapproves the State’s
submitted plan and to promulgate those
regulations by the date 6 months after
the date required for plan submission.
Thus, if a State didn’t submit a plan by
November 17, 2006, EPA is required to
promulgate a Federal Plan no later than
6 months after the deadline, unless,
prior to such promulgation, the State
submits a plan that the Administrator
determines to be approvable. In this
action, EPA proposes a Federal Plan to
implement standards of performance for
Utility Units located in all States, the
District of Columbia, and Indian
Country covered by CAMR (see 40 CFR
60.24(h)(1) listing the jurisdictions
covered by CAMR) for which a plan was
not submitted by November 17, 2006.2
In addition, with regard to jurisdictions
that submitted plans by November 17,
2006, EPA proposes to adopt a Federal
Plan, as set forth in today’s notice, in
the event that EPA reviews the
submitted plan and determines that the
plan does not meet the requirements of
CAMR. The EPA believes that it is
appropriate to propose now the Federal
Plan that would apply to each
jurisdiction without an approvable plan,
whether or not the jurisdiction involved
submitted a plan by November 17, 2006.
In all of these potential circumstances,
the Agency would be hard pressed to
both propose and promulgate a Federal
Plan of this magnitude in a six-month
time period and so must begin the
process now by proposing the Federal
Plan that would apply if the Agency
determines that the jurisdiction does not
have an approvable plan. Because in
today’s action EPA is proposing the
Federal Plan that would apply to any
jurisdiction that the Agency determines
not to have an approvable plan, the
Agency requests that all persons with
concerns about or comments on the
proposed Federal Plan submit
comments in response to today’s notice,
whether such concerns or comments
involve sources in jurisdictions that
submitted plans by November 17, 2006
or jurisdictions that did not submit
plans by that deadline. Today’s action
provides the opportunity for public
2 Under the TAR (40 CFR part 49), which
implements CAA section 301(d), Tribes may elect
to be treated in the same manner as a State in
implementing sections of the CAA. However, EPA
determined in the TAR that it was inappropriate to
treat Tribes in a manner similar to a State with
regard to specific plan submittal and
implementation deadlines.
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comment on the Federal Plan that the
Agency proposes to use for any
jurisdiction for which the Agency may
promulgate a Federal Plan under 40 CFR
60.27 because of the absence of a plan
meeting the requirements of CAMR. The
EPA will not take final action on the
proposed Federal Plan for any specific
jurisdiction until EPA either finds that
a plan has not been timely filed or
disapproves a submitted plan. (See also
‘‘Notice of Finding that Certain States
Did Not Submit Clean Air Mercury Rule
(CAMR) State Plans for New and
Existing Electric Utility Steam
Generating Units and Status of
Submission of Such Plans.’’)
B. Regulatory Background of CAMR
1. Relevant Federal Register Actions
On December 20, 2000, EPA issued a
finding pursuant to CAA section
112(n)(1)(A) that it was appropriate and
necessary to regulate coal- and oil-fired
Utility Units under CAA section 112. In
making this finding, EPA considered the
results of the study mandated by CAA
section 112(n)(1)(A) (the Utility Study),
which was completed and submitted to
Congress in February 1998.
In December 2000, EPA concluded
that the positive appropriate and
necessary determination under CAA
section 112(n)(1)(A) constituted a
decision to list coal- and oil-fired Utility
Units on the CAA section 112(c) source
category list. Relying on CAA section
112(e)(4), EPA explained in its
December 2000 finding that neither the
appropriate and necessary finding under
CAA section 112(n)(1)(A) nor the
associated listing were subject to
judicial review at that time. EPA did not
add natural-gas fired units to the CAA
section 112(c) list in December 2000,
because it did not make a positive
appropriate and necessary finding for
such units.
On January 30, 2004, EPA published
in the Federal Register a notice of
proposed rulemaking (NPR) entitled
‘‘Proposed National Emissions
Standards for Hazardous Air Pollutants;
and, in the Alternative, Proposed
Standards of Performance for New and
Existing Stationary Sources: Electric
Utility Steam Generating Units.’’ (See 69
FR 4652.) In that NPR, EPA proposed
three alternative regulatory approaches.
First, EPA proposed to retain the
December 2000 Finding and associated
listing of coal- and oil-fired Utility Units
and to issue maximum achievable
control technology-based (MACT)
national emission standards for
hazardous air pollutants (NESHAP) for
such units under CAA section 112.
Second, EPA alternatively proposed
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revising the Agency’s December 2000
Finding, removing coal- and oil-fired
Utility Units from the CAA section
112(c) list,3 and issuing final standards
of performance under CAA section 111
using emissions cap-and-trade for new
and existing coal-fired units that emit
Hg and new and existing oil-fired units
that emit nickel (Ni). Finally, as a third
possible alternative, EPA took comment
on retaining the December 2000 finding
and regulating Hg emissions from
Utility Units under CAA section
112(n)(1)(A) using a cap-and-trade
approach.
On March 16, 2004, EPA published in
the Federal Register a supplemental
notice of proposed rulemaking (SNPR)
entitled ‘‘Supplemental Notice for the
Proposed National Emission Standards
for Hazardous Air Pollutants; and, in the
Alternative, Proposed Standards of
Performance for New and Existing
Stationary Sources: Electric Utility
Steam Generating Units.’’ (See 69 FR
12398.) In the SNPR, EPA proposed
certain additional regulatory text that
largely addressed the proposed CAA
section 111 standards of performance
for Hg, which included a cap-and-trade
program. The SNPR also proposed State
Plan approvability criteria and a model
cap-and-trade rule for Hg emissions
from coal-fired Utility Units.
On December 1, 2004, EPA published
in the Federal Register a notice of data
availability (NODA) entitled ‘‘Proposed
National Emission Standards for
Hazardous Air Pollutants; and, in the
Alternative, Proposed Standards of
Performance for New and Existing
Stationary Sources, Electric Utility
Steam Generating Units: Notice of Data
Availability.’’ (See 69 FR 69864.) EPA
issued this NODA: (1) To seek
additional input on certain new data
and information concerning Hg that the
Agency received in response to the
January 30, 2004 NPR and March 16,
2004 SNPR; and (2) to seek input on a
revised proposed benefits methodology
for assessing the benefits of regulating
Hg.
On March 29, 2005 (70 FR 15994),
EPA revised the December 2000
appropriate and necessary finding and
concluded that it is not appropriate and
necessary to regulate coal- and oil-fired
Utility Units under CAA section 112.
We took this action because we now
believe that the December 2000 finding
lacked foundation and because recent
information demonstrates that it is not
3 We did not propose revising the December 2000
finding for gas-fired Utility Units because EPA
continues to believe that regulation of such units
under CAA section 112 is not appropriate and
necessary. We, therefore, take no action today with
regard to gas-fired Utility Units.
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appropriate or necessary to regulate
coal- and oil-fired Utility Units under
CAA section 112. Based solely on the
revised finding, we removed coal- and
oil-fired Utility Units from the CAA
section 112(c) list and instead
established standards of performance for
Hg for new and existing coal-fired
Utility Units under CAA section 111 on
May 18, 2005 (70 FR 28606). The
regulations promulgated pursuant to
EPA’s authority under CAA section 111
established a mechanism by which Hg
emissions from new and existing coalfired Utility Units are capped at
specified, nation-wide levels. A first
phase cap of 38 tons per year becomes
effective in 2010, and a second phase
cap of 15 tons per year becomes
effective in 2018. The final CAMR
included State Plan approvability
criteria and a model cap-and-trade rule
for Hg emissions from coal-fired Utility
Units.
those pollutants are subject to the
standard for new sources. (See 42 U.S.C.
7411(d)(1)). CAA section 111(d)
authorizes EPA to promulgate standards
of performance that States must adopt
through a SIP-like process, which
requires State rulemaking action
followed by review and approval of
State Plans by EPA. If a State fails to
submit a satisfactory plan, EPA has the
authority to prescribe a plan for the
State. (See 42 U.S.C. 7411(d)(2)(A).)
The final CAMR (70 FR 28606; May
18, 2005) discusses in more detail (i)
The applicable standards of
performance for Hg from new coal-fired
Utility Units under CAA section 111(b),
(ii) the legal authority under CAA
section 111(d) to regulate Hg from
existing coal-fired Utility Units, and (iii)
the legal authority to implement a capand-trade program for existing and new
Utility Units.
Indian reservations, dependent Indian
communities, and Indian allotments.)
CAMR includes mercury emission
budgets for coal-fired Utility Units
located in Indian country; the emission
budgets cover both existing and new
units. EPA generally will implement the
emission trading rule for coal-fired
Utility Units located in Indian country
unless a Tribe seeks and obtains
Treatment-as-a-State (TAS) status and
submits a Tribal Plan to implement the
allocated Hg emissions budget. Eligible
Tribes which choose to do so will be
responsible for submitting a Tribal Plan
analogous to the State Plans discussed
throughout this preamble, and, like
States, can choose to adopt the model
trading rule.
2. CAA Section 111 Authority
CAA section 111 creates a program for
the establishment of ‘‘standards of
performance.’’ A ‘‘standard of
performance’’ is ‘‘a standard for
emissions of air pollutants which
reflects the degree of emission
limitation achievable through the
application of the best system of
emission reduction, which (taking into
account the cost of achieving such
reduction, any non-air quality health
and environmental impacts and energy
requirements), the Administrator
determines has been adequately
demonstrated.’’ (42 U.S.C. 7411(a)(1).)
For new sources, EPA must first
establish a list of stationary source
categories, which the Administrator has
determined ‘‘causes, or contributes
significantly to, air pollution which may
reasonably be anticipated to endanger
public health or welfare.’’ (42 U.S.C.
7410(b)(1)(A).) EPA must then set
Federal standards of performance for
new sources within each listed source
category. (42 U.S.C. 7411(b)(1)(B).) The
standards for new sources under CAA
section 111(b) apply nationally and are
applicable to sources on which
construction, reconstruction or
modification is commenced after the
date of proposal of the standards. (See
id.)
Existing sources are addressed under
CAA section 111(d). EPA must issue a
standard of performance for existing
sources in a source category for a
pollutant if it has established a standard
of performance for new sources covering
an air pollutant for which air quality
criteria have not been issued or which
is not included on a list published
under CAA section 108(a), even where
C. State Plan Requirements
1. Summary of State Plan Requirements
As finalized under CAMR (70 FR
28632), each State is required to submit
a State Plan that assures compliance
with the State’s assigned Statewide Hg
emission budget for coal-fired Utility
Units. CAMR is described here
primarily for the convenience of the
reader, and EPA is only requesting
comments on CAMR with regard to
revisions to the CAMR State model
trading rule that are proposed in this
notice. See Section IV of this preamble.
Because the State must meet a coal-fired
EGU Hg emission budget, all emission
reductions must necessarily come from
coal-fired Utility Units. Each State Plan
should include fully-adopted State rules
for the EGU Hg reduction strategy with
compliance dates providing for controls
by 2010 and 2018 that will achieve the
State EGU Hg emissions budgets. The
State Plans were due by November 17,
2006. As a required element of a State
Plan, a State must demonstrate that it
has the legal authority to adopt and
implement the emission requirements
and compliance schedules in the State
Plan. The State also must identify the
enforceable State mechanism for
implementing the emission guidelines
(e.g., a State rule or other State
enforcement mechanism). Following
receipt of a State Plan, EPA has up to
4 months to approve or disapprove the
plan. (See 40 CFR 60.27(b).)
The emission reduction requirement
in CAMR applies to all coal-fired Utility
Units located in all 50 States of the U.S.,
the District of Columbia, as well as
those located in Indian country. (As
used herein, the term ‘‘Indian country’’
generally refers to all areas within
As discussed in CAMR (70 FR 28616),
CAA sections 111(a) and (d)(1)
authorize EPA to promulgate a
‘‘standard of performance’’ that States
must apply to existing EGU sources
through a State Plan, and EPA
interpreted the term ‘‘standard of
performance,’’ as applied to existing
EGU sources, to include a cap-and-trade
program.
The State EGU Hg budgets are not an
independently enforceable requirement.
Rather, each State must impose control
requirements that the State
demonstrates will limit Statewide Hg
emissions from affected new and
existing EGU sources to no more than
the amount of the EGU Hg budget.
Under CAMR, EPA finalized that States
may meet their Statewide EGU Hg
emission budgets by allowing their EGU
sources to participate in a national capand-trade program. That is, a State may
authorize its affected EGU sources to
buy and sell Hg allowances allocated in
or outside of the State, so that any
difference between the State’s EGU Hg
budget and the total amount of
Statewide EGU Hg emissions will be
offset in another State (or other States).
Regardless of State participation in the
national cap-and-trade program, EPA
believes that the best way to assure this
emission limitation is for the State to
limit total EGU Hg emissions for new
and existing units in the State to the
amount of the State EGU Hg budget. In
addition, EPA finalized that sources will
be required to comply with the 40 CFR
part 75 requirements. EPA believes that
compliance with these requirements is
necessary to demonstrate compliance
with a mass emissions limit.
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2. Performance Standard Approvability
Criteria
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II. Federal Plan Process
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A. Legal Authority for Federal Plan
CAA section 111(d) and 40 CFR
60.24(h) require States to develop and
implement State Plans for coal-fired
Utility Units designed to implement and
enforce the promulgated Hg emission
guidelines. The State Plans were due by
November 17, 2006. Following receipt
of a State Plan, EPA has up to 4 months
to approve or disapprove the plan. (CAA
section 111(d)(2)(A) provides EPA the
same authority to prescribe a plan for a
State in cases where the State fails to
submit a satisfactory plan as the Agency
would have under CAA section 110(c)
in the case of a failure to submit an
implementation plan.)
EPA is proposing a CAMR Federal
Plan that will fulfill the Agency’s
obligation under the CAA to establish
emission limits and other requirements
for coal-fired Utility Units located in
States that have not timely submitted
approvable plans or for which EPA has
disapproved a submitted plan. EPA is
proposing the Federal Plan under the
legal authority of CAA sections
111(d)(2) and 301(a). The Federal Plan
is intended, upon promulgation, to
implement the emission guidelines
adopted as part of CAMR. Any final
Federal Plan is expected to serve
primarily to temporarily fill a regulatory
gap in circumstances where either a
State fails to timely submit a plan or
EPA disapproves a submitted plan as, in
either case, States will be free to submit
an approvable plan after promulgation
of the Federal Plan and upon approval
of the State Plan by EPA, the Federal
Plan will no longer apply to coal-fired
Utility Units covered by the State Plan.
B. Implementation of Federal Plan
Congress has determined that the
primary responsibility for air pollution
control rests with State and local
agencies. See 42 U.S.C. 1401(a)(3). It is
also intended under CAA section 111
that the States take the primary
responsibility for ensuring that emission
reduction targets are met. (See, 42
U.S.C. 7411(d)(1).) Accordingly, EPA
has designed the proposed CAMR
Federal Plan to readily facilitate the
transfer of authority for implementing
and enforcing the emission guidelines
from EPA to State and local agencies.
For this action, EPA is identifying two
mechanisms for transferring
implementation responsibility to State
and local agencies: (1) If EPA approves
a State Plan submitted to EPA after the
Federal Plan is promulgated and is
effective in that State, the approved
State Plan will supersede the Federal
Plan. (In approving the State Plan, EPA
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may impose conditions it determines
necessary to ensure that the transition
from the Federal Plan to the approved
State Plan will be minimally
disruptive.); or (2) if EPA approves a
State allocation methodology that
addresses only allowance allocations
and meets certain requirements for such
allocations, EPA would implement the
Federal Plan except for the allocation
provisions that the State would
implement under the approved State
allocation methodology.4
1. State Submits a State Plan After
Becoming Subject to the Federal Plan—
Full Transfer of Authority Through
State Plan Approval
Even after coal-fired Utility Units in a
particular State become subject to the
Federal Plan, the State or a local agency
may still adopt and submit to EPA for
approval a State Plan. The EPA will
determine if the State Plan is at least as
protective as the CAMR emission
guidelines. If EPA determines that the
State Plan is at least as protective as the
emission guidelines, EPA will approve
the State Plan. Upon the approval and
effectiveness of the State Plan, the
Federal Plan will no longer apply and
the State will implement and enforce
the State Plan in lieu of the Federal
Plan. Making the State Plan effective as
soon as possible after approval
expedites a State’s assumption of
responsibility for implementing the
CAMR emission guidelines through the
State Plan mechanism as intended by
Congress. (EPA recognizes, however,
that there may be circumstances in
which it will be necessary to delay the
effective date of an approved State Plan,
or impose other conditions in approving
the State Plan, in order to minimize the
impacts of any disruption resulting from
the transition from the Federal Plan to
an approved State Plan.) If EPA
determines that the State Plan is not at
least as protective as the guidelines,
EPA cannot approve the State Plan.
2. State Implements Allowance
Allocations Under the Federal Plan
The State may implement allowance
allocations even if there is not a State
Plan in effect. EPA believes that, to the
extent authorized by State law, States
may want to undertake implementation
of Hg allocations under a Federal Plan
cap-and-trade program. A State could
4 The proposed option for States to implement
allowance allocations under a CAMR Federal Plan
is similar to the option with respect to Clean Air
Interstate Rule (CAIR) implementation wherein a
State can submit an abbreviated CAIR SIP revision
to make implementation decisions about certain
elements of the CAIR FIP trading programs (71 FR
25345). The proposed CAMR option is limited to
allowance allocations.
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choose to submit a State allocation
methodology, rather than submitting a
State Plan addressing all elements of the
Hg model trading rule (see Section III.C
of this preamble for discussion of
allocations). In this way, the State could
choose to allocate Hg allowances to its
EGU sources as it deems most
appropriate, while leaving other
elements of CAMR implementation to
the Federal Plan.
C. Timing of Federal Plan Action
As described in CAMR and
summarized in section I.C of this notice,
EPA required States to develop, adopt
and submit their State Plans by
November 17, 2006. Proposing a CAMR
Federal Plan today is necessary in order
for EPA to promulgate a Federal Plan in
accordance with 40 CFR 60.27 for States
without timely submitted, approvable
plans. EPA intends to expedite the
Federal Plan promulgation to help
assure emission reductions occur
expeditiously.
In a separate Federal Register notice
entitled ‘‘Notice of Finding that Certain
States Did Not Submit Clean Air
Mercury Rule (CAMR) State Plans for
New and Existing Electric Utility Steam
Generating Units and Status of
Submission of Such Plans,’’ EPA made
findings that certain States did not
submit CAMR State Plans by the
November 17, 2006 deadline and
otherwise provided notice of the status
of State Plan submissions. EPA intends
to promulgate a Federal Plan for any
State that fails to timely submit an
approvable plan. EPA intends to
approve expeditiously State Plans that
meet the CAMR requirements. In order
to meet the requirements of CAA section
111(d), this notice proposes a Federal
Plan for all States covered by CAMR (50
States, District of Columbia, and Indian
country). The proposed Federal Plan
requirements for each State are
identical. Final rulemaking on the
proposed Federal Plan may address only
one State or may address several States,
depending on how the individual States
respond to the provisions of the final
CAMR.
The Agency is proposing this action
to provide a Federal backstop for CAMR
in circumstances where not all States
submit timely, approvable State Plans.
In no way should the proposed Federal
Plan for CAMR be viewed as a sign of
any concern about States ultimately
making the emission reductions
required under CAMR. Rather, the
Agency intends the Federal Plan to
represent an additional option for
achieving the emission reductions
specified in CAMR. States which would
otherwise adopt the model trading
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program in CAMR as their State Plan
can accept the Federal Plan and
significantly reduce the State resources
needed to establish a program to
implement CAMR.
The Agency proposes to provide
States that are subject to these proposed
Federal requirements with the option to
submit a State allocation methodology
without submitting a State Plan to meet
the requirements of CAMR. By
proposing to accept a State allocation
methodology, the Agency intends to
increase the options available for States
to comply with CAMR. As there are no
sanctions associated with the proposed
Federal Plan, EPA anticipates that some
States may prefer to avoid spending the
time and resources necessary to adopt
and submit a State Plan. Upon approval
of any State allocation methodology,
EPA anticipates that the corresponding
portions of the CAMR Federal Plan for
that State would be replaced or their
application to affected sources would be
modified.
In offering a framework for
submission of a State allocation
methodology, the Agency anticipates
that some States will wish to retain
control over the allocation of allowances
to their EGU sources even in
circumstances where the Federal Plan
otherwise governs. EPA requests
comment on the proposed option for
States to submit a State allocation
methodology under the Federal Plan
trading program. A more complete
discussion of the proposed State
allocation methodology provisions is
found in Section III, below.
Although the deadline for States to
develop, adopt, and submit State Plans
that meet the requirements of CAMR
was November 17, 2006, EPA remains
ready to work with the States to develop
fully-approvable State Plans. The
Federal Plan will only be effective in a
State where EPA has found that a State
has not timely submitted an approvable
State Plan. In addition, EPA will
withdraw the Federal Plan for any
affected State after EPA approves a State
Plan that meets the CAMR requirements
in that State.
EPA’s goal is to have approvable
programs in place that meet the
requirements of CAMR whether they are
in the form of a State Plan or a Federal
Plan. By finalizing a Federal Plan, EPA
would in no way preclude a State from
developing its own State Plan that either
adopts the Hg model trading rule with
any discretionary elements allowed by
CAMR or meets the State’s EGU Hg
emissions budget through different
measures of the State’s choosing. EPA
will carefully consider the timing of the
Federal Plan adoption process, and the
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transition from a finalized Federal Plan
to an approved State Plan, to make sure
to preserve each State’s freedom to
develop and implement a State Plan. In
this way, EPA will enhance each State’s
options for complying with the
requirements of CAMR while ensuring
that all the Hg emissions reductions and
environmental benefits of CAMR are
realized.
D. Federal Plan Control Measures
In contrast to the State Plan process—
where selection and implementation of
control measures is the primary
responsibility of the State—in the case
of a Federal Plan, it is EPA’s
responsibility to select the Hg control
measures for each coal-fired EGU and
assure compliance with those measures.
(See, 40 CFR 60.27(e).) Thus, the
Federal Plan would be designed by EPA
to achieve the same total Statewide EGU
Hg emission budgets as those described
in CAMR and discussed below. The
specific emission reductions assigned in
the Federal Plan could be different from
what a State might choose. In selecting
the specific Hg emission reductions for
the CAMR Federal Plan, EPA is
proposing to adopt as the Federal Plan
the CAMR State model cap-and-trade
program rule, modified slightly to allow
for Federal instead of State
implementation.
EPA believes it is essential that
compliance with the Hg control strategy
be verified. Tracking emissions is the
principal mechanism to ensure
compliance with the Hg emissions
budget. The Hg emissions control
requirements for coal-fired Utility Units
proposed in the CAMR Federal Plan
include requirements that the affected
EGU sources directly report emissions
data to EPA that can be used to
determine compliance with the Hg
emissions decreases required by the
proposed Federal Plan. The specifics of
the Hg cap-and-trade program for the
Federal Plan are discussed below in
Section III. The Federal Plan includes
the proposed methodology for allocating
Hg allowances that EPA would use to
allocate allowances to units but does not
include the allocations themselves. EPA
will provide the allocations for
individual units in later regulatory
actions; the allocations will meet the
State Hg budgets that are established in
CAMR for coal-fired Utility Units.
E. National Mercury Budget and
Compliance Dates
In this action, the Agency is
proposing a Federally-administered
program to meet the CAMR Hg emission
reduction requirements in accordance
with the caps and timeline under
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77105
CAMR. This action does not establish
those emission reduction requirements
or schedule, which were established by
the CAMR rulemaking. Thus, the
Agency is not requesting comment on
the emission reduction requirements or
the schedule for implementing these
reductions.
For CAMR, EPA determined that there
was authority under CAA section 111(d)
for a Hg cap-and-trade program. Thus,
EPA interpreted the term ‘‘standard of
performance,’’ as applied to existing
EGU sources, to include a cap-and-trade
program. EPA also determined that a
cap-and-trade program based on Hg
control technology available in the
relevant timeframe is the best
demonstrated system for reducing Hg
emissions from existing coal-fired
Utility Units. CAMR adds Hg to the list
of pollutants covered under 40 CFR part
60, subpart Da, by establishing emission
limits for new sources and emission
guidelines for existing EGU sources.
CAMR established a mechanism by
which Hg emissions from new and
existing Hg Budget units are capped at
specified, nation-wide levels. A first
phase cap of 38 tons per year becomes
effective in 2010, and a second phase
cap of 15 tons per year becomes
effective in 2018. Facilities must
demonstrate compliance with the
standard by holding one ‘‘allowance’’
for each ounce of Hg emitted in any
given year. Allowances are readily
transferable among all regulated
facilities.
The added benefit of the cap-andtrade approach is that it dovetails well
with the sulfur dioxide (SO2) and
nitrogen oxides (NOX) emission caps
under CAIR (see 70 FR 25162, May 12,
2005). CAIR establishes a broadlyapplicable cap-and-trade program that
significantly limits SO2 and NOX
emissions from the power sector. The
advantage of regulating Hg at the same
time and using the same basic
regulatory mechanism as for SO2 and
NOX is that significant Hg emissions
reductions, especially reductions of
oxidized Hg, can and will be achieved
by the air pollution controls designed
and installed to reduce SO2 and NOX
emissions. Because significant Hg
emissions reductions can be obtained as
a ‘‘co-benefit’’ of controlling emissions
of SO2 and NOX, the coordinated
regulation of Hg, SO2, and NOX allows
Hg reductions to be achieved in a timely
and cost-effective manner.
As discussed in CAMR, a Phase I cap
based on ‘‘co-benefits’’ fulfills EPA’s
obligation to set a standard of
performance based on the best
demonstrated system of emissions
reduction. The Phase I Hg cap is
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supported by current information on the
availability of control technologies,
incremental cost-effectiveness of Hg
emissions reductions beyond cobenefits, and analysis of engineering,
financial, and other factors needed to
install controls. The Phase I Hg
emissions cap of 38 tons reflects the cobenefits level and is established as a
fixed cap in CAMR.
In CAMR, EPA established a Phase II
Hg emissions cap based on the
reductions in Hg emissions resulting
from the CAIR program together with
reductions that can be reasonably
obtained through the use of Hg-specific
controls. This Hg cap of 15 tons is
effective in 2018. As discussed in
CAMR, EPA concluded that the 2018
cap is warranted because Hg-specific air
pollution control technologies such as
activated carbon injection (ACI) will be
available for general use sufficiently
before 2018, thereby allowing for their
deployment to comply with the Phase II
cap in 2018. The 15-ton cap in 2018 is
also supported by cost considerations,
because the cap level will not have
significant impacts on energy supply
and the cost of energy to the consumer.
F. State and Indian Country Emission
Budgets
In CAMR, EPA outlined a method for
apportioning the nation-wide budget to
coal-fired Utility Units located in
individual States and in Indian country.
EPA maintains that the Hg emissions
budget provides an efficient method for
achieving necessary reductions in Hg
emissions, while providing substantial
flexibility in implementing the program.
The methodology for determining State
budgets is described in CAMR (see 70
FR 28606). The 2010 State budgets were
revised slightly as a result of the
reconsideration process (see Notice of
Final Action on Reconsideration, 71 FR
33388, June 9, 2006). EPA is not inviting
comment on the CAMR State and Indian
country Hg budgets in connection with
this proposed rule.
In CAMR, EPA finalized a formula for
determining the Hg budget for coal-fired
Utility Units located in a State or Indian
country for 2010 and 2018. Under that
formula, the EGU Hg budget for the
State or Indian Country equals the sum
of the weighted shares for each existing
affected EGU in the State or Indian
country of total baseline heat input,
where a unit’s baseline heat input and
the total baseline heat input are adjusted
to reflect the ranks of coal combusted by
the unit during the baseline period, to
total heat input of all affected units. As
discussed in CAMR, EPA finalized
adjustment factors of 1 for bituminous,
1.25 for subbituminous, and 3 for lignite
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coals (see also ‘‘Technical Support
Document for the Clean Air Mercury
Rule Notice of Final Rulemaking, State,
and Indian Country Emissions
Budgets,’’ EPA, March 2005; EPA–HQ–
OAR–2002–0056–6154).
Each of the 50 States and the District
of Columbia covered by the final CAMR
has been assigned a State Hg emissions
budget for coal-fired Utility Units. An
EGU Hg emissions budget has also been
assigned for existing coal-fired Utility
Units located in Indian country. States
have the flexibility to meet these State
budgets by participating in a trading
program or establishing another
methodology for Hg emissions
reductions from coal-fired Utility Units,
as discussed elsewhere in this action.
States have the ability to require Hg
reductions beyond those required by the
State budget determined by EPA. Tribes
that choose to seek and obtain TAS
status for that purpose have the same
flexibility in developing an appropriate
Tribal Plan. The State EGU Hg emission
budgets are a permanent cap regardless
of growth in the electric sector and,
therefore, States have the responsibility
of incorporating new coal-fired units in
their EGU Hg emission budgets.
Similarly, the Hg emission budgets for
coal-fired Utility Units located in Indian
country act as a permanent cap, and
EPA, or a Tribe that has obtained TAS
status and is implementing an approved
Tribal Plan, has responsibility for
incorporating new units into the EGU
Hg emission budget.
The final State, Indian country, and
District of Columbia EGU Hg emission
budgets are presented in Table II–1 of
this preamble. In CAMR (as revised in
the CAMR Notice of Final Action on
Reconsideration, 71 FR 33388), EPA
established budgets for the 50 States, the
District of Columbia, the Navajo Nation
and the Ute Indian Tribe.
In CAMR, for areas of Indian country
that do not currently have any coal-fired
electricity generation, EPA noted its
intent to address any future planned
construction of coal-fired Utility Units
in those areas on a case-by-case basis, by
working with the relevant Tribal
government to regulate the Utility Units
through either a Tribal Plan, if an
eligible Tribe chooses to submit one, or
a Federal Plan. The Agency further
explained that ‘‘EPA does not believe
that there is sufficient information to
design allocation provisions for new
generation which locates in Indian
country at this time. Therefore, rather
than create a Federal allowance setaside for Tribes, the EPA will work with
Tribes and potentially affected States to
address concerns regarding the equity of
allowance allocations on a case-by-case
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basis as the need arises. The EPA may
choose to revisit this issue through a
separate rulemaking in the future.’’ (See
70 FR 28606).
In this action, EPA is proposing to
address the issue of how new generation
in areas of Indian country without an
emissions budget will be treated under
CAMR and the CAMR Federal Plan.
Since CAMR was finalized, EPA has
become aware of potential development
of new generation in Indian country,
and the need to provide such generation
with certainty related to compliance
costs.
After detailed consideration of this
issue, EPA proposes to treat new
generation in areas of Indian country
without an emissions budget in the
same way it treats new generation in
States without emissions budgets. New
units in areas of Indian country without
an emissions budget and participating
in the CAMR trading program would not
receive an allowance allocation, though
these units, like new units in States
without emissions budgets, would be
required to hold allowances equal to
emissions. For the two Tribes that have
existing generation and, thus, an
emissions budget, they can provide new
sources with allowances through a new
unit set-aside if they choose to seek, and
ultimately are granted, treatment as
State (TAS) status for that purpose and
then submit a tribal implementation
plan (TIP) which incorporates the
CAMR trading program. EPA does not
believe that there is a strong argument
for treating new units locating in areas
of Indian country without Hg emissions
budgets differently from new units
locating in States without emissions
budgets. Further, EPA analysis suggests
that the cost of allowance purchase will
be a very small share of the total annual
cost associated with a new unit, on the
order of 1 percent of total annualized
costs in 2010. (See TSD and spreadsheet
titled ‘‘Cost Analysis of Potential New
Subbituminous Coal Plant’’ available in
the docket.)
EPA is also taking comment on the
alternative of creating a set-aside budget
for new unit generation locating in areas
of Indian country that do not have an
emissions budget. A potential option is
that EPA could create a 300-pound (lb)
annual set-aside budget (approximately
the annual Hg emissions for 10 new 300
MW coal-fired units with 90 percent Hg
control) for new unit generation in such
areas. This would require additional
revisions to the CAMR State budgets.
The set-aside budget would be created
by reducing each State’s EGU Hg
emission budget by about 0.4 percent for
years 2012–2017 and by 1.0 percent for
2018 and thereafter, to maintain
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nationwide annual budgets of 38 tons
and 15 tons, respectively. Such a setaside budget would not be created until
2012, in order to allow States time to
adjust their budgets and planned control
strategies. Considering the lead-time
required to develop new coal-fired
generation, a new unit set-aside budget
commencing in 2012 would likely be
well-timed to coincide with the earliest
that new generation might come on-line.
EPA would distribute this set-aside
budget to new sources based on a
source’s emissions from the previous
year, consistent with the approach that
is used to determine the distribution of
the new source set-aside discussed in
section III.C. If this budget were oversubscribed for a given year, EPA would
distribute the budget on a pro-rata basis.
However, if this budget were
undersubscribed for a given year, EPA
would not redistribute the remaining
portion of the budget because of the
further changes to State Plans that doing
so would require.
EPA requests comment on the
creation of such a budget, the
appropriate size and start date, as well
as whether the set-aside should be
available to new generation in States
that do not have an Hg emission budget,
77107
in addition to new generation in areas
of Indian country with no Hg emission
budget.
As discussed in CAMR, EPA finalized
Hg emission budgets of zero tons for
three States (Idaho, Rhode Island, and
Vermont) and the District of Columbia.
New coal-fired Utility Units locating in
these areas will, nevertheless, be
required to hold allowances equal to
their Hg emissions. As participants in
the cap-and-trade program, these
sources could buy Hg allowances and
meet their requirements. This is similar
to the situation that new units face
under the existing Acid Rain Program.
TABLE II–1.—STATE ANNUAL EGU HG EMISSION BUDGETS
Budget
(tons)
State
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2010–2017
Alaska ..................................................................................................................................................................
Alabama ...............................................................................................................................................................
Arkansas ..............................................................................................................................................................
Arizona .................................................................................................................................................................
California ..............................................................................................................................................................
Colorado ..............................................................................................................................................................
Connecticut ..........................................................................................................................................................
Delaware ..............................................................................................................................................................
District of Columbia .............................................................................................................................................
Florida ..................................................................................................................................................................
Georgia ................................................................................................................................................................
Hawaii ..................................................................................................................................................................
Idaho ....................................................................................................................................................................
Iowa .....................................................................................................................................................................
Illinois ...................................................................................................................................................................
Indiana .................................................................................................................................................................
Kansas .................................................................................................................................................................
Kentucky ..............................................................................................................................................................
Louisiana ..............................................................................................................................................................
Massachusetts .....................................................................................................................................................
Maryland ..............................................................................................................................................................
Maine ...................................................................................................................................................................
Michigan ...............................................................................................................................................................
Minnesota ............................................................................................................................................................
Missouri ................................................................................................................................................................
Mississippi ............................................................................................................................................................
Montana ...............................................................................................................................................................
Navajo Nation Indian Country .............................................................................................................................
North Carolina ......................................................................................................................................................
North Dakota ........................................................................................................................................................
Nebraska ..............................................................................................................................................................
New Hampshire ...................................................................................................................................................
New Jersey ..........................................................................................................................................................
New Mexico .........................................................................................................................................................
Nevada .................................................................................................................................................................
New York .............................................................................................................................................................
Ohio .....................................................................................................................................................................
Oklahoma .............................................................................................................................................................
Oregon .................................................................................................................................................................
Pennsylvania ........................................................................................................................................................
Rhode Island ........................................................................................................................................................
South Carolina .....................................................................................................................................................
South Dakota .......................................................................................................................................................
Tennessee ...........................................................................................................................................................
Texas ...................................................................................................................................................................
Utah .....................................................................................................................................................................
Ute Indian Tribe Reservation Indian Country ......................................................................................................
Virginia .................................................................................................................................................................
Vermont ...............................................................................................................................................................
Washington ..........................................................................................................................................................
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E:\FR\FM\22DEP2.SGM
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0.010
1.289
0.516
0.454
0.041
0.706
0.053
0.072
0
1.232
1.227
0.024
0
0.727
1.594
2.097
0.723
1.525
0.601
0.172
0.49
0.001
1.303
0.695
1.393
0.291
0.377
0.600
1.133
1.564
0.421
0.063
0.153
0.299
0.285
0.393
2.057
0.721
0.076
1.779
0
0.58
0.072
0.944
4.656
0.506
0.060
0.592
0
0.198
2018 and
thereafter
0.004
0.509
0.204
0.179
0.016
0.279
0.021
0.028
0
0.487
0.484
0.009
0
0.287
0.629
0.828
0.285
0.602
0.237
0.068
0.193
0.001
0.514
0.274
0.550
0.115
0.149
0.237
0.447
0.617
0.166
0.025
0.060
0.118
0.112
0.155
0.812
0.285
0.030
0.702
0
0.229
0.029
0.373
1.838
0.200
0.024
0.234
0
0.078
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TABLE II–1.—STATE ANNUAL EGU HG EMISSION BUDGETS—Continued
Budget
(tons)
State
2010–2017
Wisconsin .............................................................................................................................................................
West Virginia ........................................................................................................................................................
Wyoming ..............................................................................................................................................................
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III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg
Cap-and-Trade Program
In this action, EPA proposes to
regulate coal-fired Utility Units using a
market-based, cap-and-trade program
with a declining cap. As discussed in
CAMR (70 FR 28617), this type of
program is a proven method for
achieving highly cost-effective
emissions reductions while providing
sources compliance flexibility and
certainty.
In 40 CFR part 62, subpart LLL, EPA
proposes a Federal Hg cap-and-trade
program as a means of controlling Hg
mass emissions from coal-fired Utility
Units (the proposed rules use the term
‘‘electric generating unit’’ or ‘‘EGU’’) in
a State for which this Federal Plan is
promulgated. Participation in the Hg
Budget Trading Program would be
mandatory for all Utility Units covered
by the final Federal Plan resulting from
this proposal. Mercury allowances—
each allowance representing a limited
authorization to emit one ounce of Hg—
would be the currency used in the
trading program. A total number of Hg
allowances would be allocated to coalfired Utility Units in a State equal to the
amount of the State’s EGU Hg trading
program budget under the Federal Plan.
Utility Units participating in either the
Federal Hg cap-and-trade program or the
CAMR State Hg cap-and-trade program
would be able to trade Hg allowances
with each other, and use, for
compliance, Hg allowances issued
under either type of program.
Under 40 CFR part 62, subpart LLL,
as proposed, EPA would be responsible
for all aspects of program
implementation, with the exception of
permitting. Permitting responsibility
will lie with State and local air
permitting authorities with title V
permit programs found by EPA to meet
the requirements of title V and its
implementing regulations, or in
appropriate circumstances, with tribal
authorities implementing a delegated 40
CFR part 71 permit program. Mercury
Budget sources that currently have title
V permits will be required to obtain an
amended permit which includes the Hg
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Budget Trading Program requirements.
Any Utility Unit that does not currently
have a title V permit will be required to
obtain one which includes the necessary
Hg Budget Trading Program
requirements. While they must be
included in a Hg Budget source’s title V
permit, the requirements of the Federal
Hg Budget Trading Program rule are
Federally enforceable independent of
that permit.
As explained further in Section II of
this preamble, the Agency is proposing
to provide an additional option under
which States could choose to submit a
State allocation methodology, rather
than a complete State Plan addressing
all elements of the CAMR Hg trading
program. In this way, the State could
choose the methodology for allocating
Hg allowances to its EGU sources which
it deems most appropriate, while
leaving other elements of CAMR
implementation to a Federal Plan.
Under 40 CFR part 62, subpart LLL,
as proposed, sources in the Federal Hg
Budget Trading Program would be
required to monitor and report their
emissions in accordance with relevant
portions of 40 CFR part 75. Under
CAMR, EPA promulgated revisions to
40 CFR part 75 that establish Hg mass
monitoring requirements and provide
some flexibility to regulated sources.
Consistent and accurate monitoring of
emissions is necessary for
accountability regarding compliance
with the requirement to hold Hg
allowances and to ensure that an ounce
of Hg emissions attributed to one source
in one State is equivalent to an ounce
attributed to another source in the same
or another State.
EPA intends that if States choose to
meet their Hg emission reduction
obligations under CAMR by adopting
the State Plan model cap-and-trade rule
and participating in the EPAadministered trading program, the EPAadministered State Plan trading program
will be fully integrated with the Federal
Hg trading program that EPA may
promulgate in a final Federal Plan.
Integration is possible because CAMR
and the corresponding Federal Plan
both seek to achieve the same level of
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0.89
1.394
0.952
2018 and
thereafter
0.351
0.550
0.376
Hg emission reductions from the same
sources (i.e., coal-fired Utility Units),
and the State Hg model trading rule and
the Federal Hg trading rule contain
essentially the same provisions.
In particular, EPA believes that, in
order to be eligible to participate in an
effective Hg emissions cap and trade
program, a source must meet two
principal criteria. The first criterion is
that each source must be able to account
accurately and consistently for all of its
emissions to ensure the trading program
goal of maintaining emissions within a
cap. Emissions monitoring must be
accurate and consistent among all
sources so that each allowance
represents the same amount of
emissions. The second criterion for
participation in a trading program is
that each source must identify a
responsible party who would be
accountable for demonstrating and
ensuring compliance with program
requirements. EPA believes that this
action—like the State Hg model trading
rule—imposes requirements that meet
those criteria. The Agency also believes
that, because this action contains the
same program elements as are in the
State Plan model trading program and is
designed to meet the same
environmental goals and cap the same
sources at the same levels as that model
trading program, it is appropriate to
design a CAMR Federal Plan that is
integrated with the CAMR State Plan
trading program.
Under this scenario of an integrated
trading program, EGU sources subject to
the Federal Hg trading program under
the Federal Plan and EGU sources in
States choosing to participate in the
EPA-administered CAMR State Plan
trading program could trade Hg
allowances with one another under
common emissions caps across
participating States. Integration of the
trading programs reduces the possibility
of inconsistent or conflicting deadlines
or requirements, increases the potential
cost savings for sources, and streamlines
program administration. Unnecessary
inconsistencies between the two types
of trading programs could hamper
sources’ ability to plan and achieve the
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needed reductions as cost effectively as
possible and could complicate program
administration. In addition the
integration of the programs means that,
if a State would submit a State Plan
including the EPA-administered Hg
emissions trading program after EPA
had established a Federal Hg trading
program under a Federal Plan,
disruptions to sources that would shift
from regulation under a Federal Plan to
regulation under a State Plan would be
minimized.
ycherry on PROD1PC64 with PROPOSALS2
1. Road Map of Federal Hg Cap-andTrade Rule
The following is a brief ‘‘road map’’
to the proposed Federal Hg cap-andtrade program and is provided as a
convenience to the reader. Please refer
to the detailed provisions of the
proposed rule for further information.
a. State Participation. States may be
granted the authority to implement Hg
allowance allocations through a State
allocation methodology submitted
under the Federal Plan. In this
submission, a State could adopt its own
methodology or adopt this proposed
Federal allocation methodology and
allocate Hg allowances.
State and local agencies would be the
permitting authorities for the majority of
Hg Budget sources, with title V permits
that would include, in the Hg-Budgetpermit portion, Hg Budget Trading
Program requirements.
b. Allocation of Allowances to
Sources. Mercury allowances would be
allocated by the Administrator based on
the methodology proposed in this
Federal Plan preamble and described in
the proposed regulatory text, unless a
State allocation methodology is
approved.
c. Emission Monitoring and Reporting
by Sources. Utility Units would monitor
and report their Hg mass emissions
using 40 CFR part 75.
Source information management,
emissions data reporting, and allowance
trading will be conducted through online systems similar to those currently
used for the Acid Rain SO2 and NOX
Budget Trading programs.
d. Compliance and Penalties. For the
Federal Hg cap-and-trade program, any
Utility Unit found to have excess
emissions would have to surrender
allowances from the next control period
equal to three times the ounces of excess
emissions.
B. Sources Affected Under the Federal
Hg Cap-and-Trade Rule
As discussed above, EPA is proposing
a Federal Hg cap-and-trade program as
a means of controlling Hg emissions
from coal-fired Utility Units in each
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State and Indian country for which a
Federal Plan is promulgated. For the
reasons discussed in CAMR (70 FR
28625) and the CAMR Notice of Final
Action on Reconsideration (71 FR
33388), EPA is proposing to use the
same applicability provisions for the
Federal Plan in 40 CFR part 62, subpart
LLL, and the State Plan in 40 CFR part
60, subpart HHHH.
As discussed in detail below, certain
coal-fired units, in a State or Indian
country for which a Federal Plan is
promulgated, will be Hg Budget units
(i.e., units subject to the Federal Hg
Budget Trading Program), and any
source that includes one or more such
units will be an Hg Budget source,
subject to the requirements of 40 CFR
part 62, subpart LLL.
With certain clarifications and
exemptions, the provisions of 40 CFR
part 62, subpart LLL (and 40 CFR part
60, subpart HHHH), generally apply to
Utility Units (boilers or combustion
turbines serving on or after November
15, 1990 a generator with a nameplate
capacity greater than 25 megawatts
electrical (MWe) and producing
electricity for sale) that are coal-fired
(i.e., units where any amount of coal or
coal-derived fuel is used at any time).
The definition of ‘‘coal-fired’’ is similar
to the definition that is used in the Acid
Rain Program.
In the CAMR Notice of Final Action
on Reconsideration (71 FR 33388), EPA
finalized revisions to the applicability
provisions in the CAMR State Plan
model trading rule (see Section IV
below). The applicability provisions in
this proposed Federal Hg trading
program are identical to the revised
applicability provisions for the CAMR
model State trading rule.
First, in the Notice of Final Action on
Reconsideration, EPA clarified the
applicability provisions in the State
Plan Hg model trading rule (40 CFR
60.4104) to specifically exclude from
the trading program certain solid waste
incineration units (municipal waste
combustors (MWC)) subject to an
applicable NSPS, an EPA-approved
State Plan, or certain Federal Plans. In
this action, EPA is proposing to include
this same exemption in the Federal Hg
trading rule.
Second, in the Notice of Final Action
on Reconsideration, EPA discussed the
potential inclusion of certain industrial
boilers in both CAMR and the CAA
section 112 Industrial Commercial
Institutional Steam Generating Unit
MACT standards (the Boiler MACT, 70
FR 55217, 40 CFR part 63, subpart
DDDDD). EPA addressed this potential
overlap in two ways. First, EPA issued
language amending 40 CFR part 63,
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77109
subpart DDDDD (see National Emission
Standards for Hazardous Air Pollutants
for Industrial, Commercial, and
Institutional Boilers and Process
Heaters: Reconsideration of Emissions
Averaging Provision and Technical
Corrections) in response to a petition for
reconsideration for the Boiler MACT.
The amended language specifically
excludes units subject to CAMR from
regulation under the Boiler MACT.
Second, EPA revised the applicability
provisions in the State Plan Hg model
trading rule (40 CFR 60.4104) to include
only stationary, coal-fired boilers or
stationary, coal-fired combustion
turbines serving, at any time on or after
November 15, 1990, a generator with a
nameplate capacity of more than 25
MWe producing electricity for sale. This
date would be consistent with the dates
used in the Acid Rain Program and
CAIR. EPA is proposing the same
language in the applicability provisions
of this Federal Hg trading rule.
Finally, as discussed in the Notice of
Final Action on Reconsideration, EPA
made certain other clarifying changes to
applicability provisions in 40 CFR
60.4104 with regard to cogeneration
units in order to ensure that the
regulatory text unambiguously reflects
EPA’s intent, as expressed in the CAMR
preamble (see 70 FR 28612, 28625–26)
regarding cogeneration units. EPA is
proposing today to include the same
language in the applicability provisions
of the Federal Hg trading rule.
In particular, certain cogeneration
units would be exempt from the
proposed Federal Hg cap-and-trade
program. Cogeneration units are units
having equipment used to produce
electricity and useful thermal energy for
industrial, commercial, heating, or
cooling purposes through sequential use
of energy which also meet certain
operating and efficiency standards. The
program would have different
applicability provisions for noncogeneration units and cogeneration
units. Any cogeneration unit, serving
(since the later of November 15, 1990 or
the start-up of the unit), a generator with
a nameplate capacity of greater than 25
MWe supplying more than 1⁄3 of its
potential electric output capacity and
more than 219,000 MW-hr annually to
any utility power distribution system for
sale, would be subject to the
requirements of the proposed Federal
CAMR trading rule. Otherwise, the unit
would qualify for an exemption under
the proposed Federal rule.
In summary, EPA is proposing that,
except for a unit that qualifies as a
cogeneration unit and meets certain
other requirements or an MWC that is
subject to an applicable NSPS, an EPA-
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Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
approved State Plan, or certain Federal
Plans, a Hg Budget unit is any
stationary, coal-fired boiler or
stationary, coal-fired combustion
turbine serving at any time, since the
later of November 15, 1990 or the startup of the unit’s combustion chamber, a
generator with nameplate capacity of
more than 25 MWe producing electricity
for sale.
ycherry on PROD1PC64 with PROPOSALS2
C. Allocation of Emission Allowances
For States that choose under CAMR to
participate in the EPA-administered
State Plan Hg cap-and-trade program,
EPA provided an example methodology
for allocating Hg allowances to
individual units in the Hg model trading
rule. For this proposed Federal Plan, the
Agency is proposing to use an Hg
allocation methodology that is the same
as the example methodology in the
model trading rule. Within each affected
State, the Agency would allocate to
existing and new units a total amount of
allowances that equals the tonnage in
the State’s Hg budget. The Agency’s
proposed timeline for allocating and
recording Hg allowance allocations and
proposed Hg allowance allocation
methodology are described below.
1. Timing for Initial Allocation
Distributions
The Agency proposes that, for all but
the first 3 years of Hg allocations, EPA
will record unit-by-unit allocations of
allowances for existing units for a given
year in the source compliance accounts
no less than 3 years before January 1 of
that year (i.e., the first year for which
the allowance can be used to meet the
allowance-holding requirement). This
approach provides sources sufficient
lead time to facilitate their participation
in the allowance market (e.g., by buying
or selling allowances or allowance
futures). For the first set of Hg
allocations under the Federal Plan
(covering control periods 2010–2014),
the Agency proposes to record unit-byunit allocations in source accounts as
follows: by December 1, 2007, for
allocations for 2010; by December 1,
2008, for allocations for 2011; by
December 1, 2009, for allocations for
2012–2013; and by December 1, 2010 for
allocations for 2014.
As explained in CAMR, States had
until November 17, 2006 to submit State
Plans to the Agency, at which time a
State that chooses to participate in the
EPA-administered Hg cap-and-trade
program would submit its Hg trading
rule (including Hg allocation
methodology) and first set of
allocations. As mentioned above, the
Agency is proposing to provide an
additional option under which a State
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could choose to submit only a State
allocation methodology, rather than a
complete Hg trading rule. In this way,
the State could choose to allocate Hg
allowances to its EGU sources in the
manner it deems most appropriate,
while leaving other elements of the
trading program to be governed by the
Federal Plan. Under this option, the
Agency proposes that States would have
until May 30, 2007 to submit the State
allocation methodology. The Agency
intends to work with the States to assure
(consistent with timing requirements for
allowance recordation) that, for any
State that chooses to allocate Hg
allocations (either under an approved
State Plan or an approved State
allocation methodology), the State’s
allocations, rather than EPA-determined
Federal Plan allocations, would be
recorded in EGU source accounts.
As discussed in CAMR, allowance
allocation decisions in a cap-and-trade
program raise primarily distributional
issues, as economic forces are expected
to result in economically least-cost and
environmentally similar outcomes
regardless of the manner in which
allowances are initially distributed.
Consequently, in a State allocation
methodology submitted in the context of
a Federal Plan (like in a State Plan
under CAMR), States are given latitude
in developing their Hg allocation
approach. Specifically, States will have
flexibility concerning whether
allowances are distributed to sources for
free and concerning the frequency of Hg
allocations, the basis for distributing the
Hg allowances, and the use and size of
Hg allowance set-asides. The final
CAMR preamble provides a further
discussion of Hg allocation approaches.
(See 70 FR 28627).
For the reasons discussed in Section
II.C above, EPA intends to finalize a
CAMR Federal Plan. By finalizing a
Federal Plan, the EPA would in no way
preclude a State from developing and
submitting for approval its own State
Plan for Utility Units that either adopts
the Hg model trading rule (with the
flexibility allowed by CAMR concerning
allocation of Hg allowances) or meets
the CAMR Hg emission reduction
requirements for Utility Units through
different measures of the State’s
choosing.
The Agency’s preference is for States
participating in the EPA-administered
cap-and-trade program to make
decisions about Hg allocations for their
EGU sources. EPA intends to determine
Federal Plan unit-by-unit Hg allocations
(with opportunity for public objections).
However, we intend to only record
those EPA-determined allocations in
allowance accounts for EGU sources
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located in a State without a timely,
approved CAMR State Plan or a timely,
approved State allocation methodology.
In considering when to record Federal
Plan Hg allocations in EGU source
accounts, the Agency seeks to balance
the following two goals: (1) To provide
certainty to sources regarding their
CAMR Hg allocations and time for EGU
sources to make compliance decisions,
and (2) to provide States choosing to
allocate CAMR Hg allowances with time
to do so and EPA with time to approve
State Plans that include Statedetermined allocations. Taking into
consideration the submission deadlines
for a State Plan or a State allocation
methodology, the amount of time
needed by the Agency to approve a State
Plan or State allocation methodology,
and the amount of time remaining
before the initial CAMR control period,
EPA developed a proposed schedule
(summarized above and in Table III–1)
for recording Hg allocations in source
accounts for the Federal Hg trading
program. EPA seeks comment on this
proposed schedule.
The Agency will endeavor to work
with States to ensure that we can
approve State Plans or State allocation
methodologies and timely record State
Hg allocations in EGU source accounts.
EPA intends to act in such a way that,
once EPA-determined Federal Plan Hg
allocations are recorded for a particular
control period (which would only occur
in the absence of a timely, approved
State Plan or a timely, approved State
allocation methodology), we would not
approve overlapping State allocations
for that same control period.5 Rather,
EPA will work with the States to
approve State Plans, or State allocation
methodologies, providing State Hg
allocations for control periods that begin
upon the expiration of the last control
period for which EPA-determined
allocations have been recorded in EGU
source accounts. It would be highly
disruptive to the allowance market if
EPA-determined Hg allowances that had
already been recorded and then traded
in the market could subsequently be
rendered invalid due to approval of
overlapping State-determined
allocations for the same control period.
The discussion in this section is
focused on the timing for recordation of
EPA-determined Hg allocations in
coordination with approval of State
Plans or State allocation methodologies
5 As discussed in CAMR, each State has flexibility
in the State Plan to allocate its allowances however
it chooses (within its State budget) so long as
certain timing requirements are met. A State would
have the same flexibility in developing a State
allocation methodology in the context of the
Federal Plan.
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and recordation of State allocations,
assuming States choose to participate in
the EPA-administered CAMR trading
program. The Agency would also
carefully consider the timing of a
transition from Federal- to Stateimplemented programs for any State
choosing to use a method other than the
EPA-administered State Plan model
trading program to meet CAMR
obligations.
As discussed further below, EPA
intends to record EPA-determined
Federal Plan Hg allocations for 2010 and
2011 one year at a time. In this manner,
even if a State does not have an
approved State Plan in time for the
Agency to record State allocations for
the first or second control period, it
would be possible to record State
allocations for subsequent control
periods. The Agency strongly urges
States to submit State Plans or State
allocation methodologies to the Agency
in a timely manner. We intend to work
with States and ensure that there will
not be overlapping Hg allocations for
any control period.
The State Plan Hg model trading rule,
revised somewhat in the Notice of Final
Action on Reconsideration (71 FR
33388), and 40 CFR 60.24(h), require
States to submit their State Plans by
November 17, 2006. For a State that
chooses to participate in the EPAadministered Hg model trading
program, this State Plan submittal
would be required to comprise a full
trading program including the State’s Hg
allocation methodology. The EPA
anticipates that it may require about 6
months to approve a State Plan
submission.
As discussed above, the Agency is
proposing that States may choose to
submit only a State allocation
methodology, which would allocate Hg
allowances to individual Utility Units in
the State in the context of the Federal
Plan. In this way, a State could choose
to allocate Hg allowances to its Utility
Unit sources in the manner it deems
most appropriate while letting the
Federal Plan control all other aspects of
the trading program. Through
submission of a State allocation
methodology, a State can also ensure
that its Hg allocations will apply even
in circumstances where its State Plan is
still undergoing EPA review. The
Agency proposes that States would have
until May 30, 2007 to submit their State
allocation methodologies. The EPA
proposes to allow States to submit State
allocation methodologies later than
State Plans because we anticipate that
we will be able to complete the approval
process more quickly for State
allocation methodologies due to their
narrower scope. The Agency proposes
that the State would have until October
31, 2007 to submit the first set of Hg
allocations pursuant to an approved
State allocation methodology
submission.
Assuming that States submit State
allocation methodologies by the May
2007 deadline and that EPA can
approve these submissions in about 6
months and assuming that some
additional time may be required for
coordination between States and EPA
before State allocations can be recorded
in EGU source accounts, it is reasonable
to assume that EPA will be able to
record such allocations by December 1,
2007. Therefore, EPA proposes to record
Hg allocations in EGU source accounts
for the 2010 control period by December
1, 2007. If a State’s timely Hg allocations
are approved, then the Agency would
record State Hg allocations for the 2010
control period. However, for any State
for which a State Plan or State
allocation methodology is not approved
by December 1, 2007, the EPA would
record EPA-determined Hg allocations
for 2010. Recording Hg allocations by
December 1, 2007 for the 2010 control
period would provide affected EGU
sources with certainty of their
allocations just over 2 years in advance
of the beginning of the control period.
The Agency proposes to record EPAdetermined Hg allocations in source
accounts 1 year at a time for the 2010
and 2011 control periods in order to
provide flexibility to States. If EPA
records EPA-determined allocations for
the 2010 control period and
subsequently approves a State’s timely
State Plan or timely State allocation
methodology, the Agency would record
the State’s allocations for future years.
The Agency does not intend to approve
State Hg allocations for any control
period that would overlap with EPAdetermined allocations already recorded
in source accounts.
EPA proposes to record EPAdetermined Hg allocations in source
accounts by December 1, 2008 for the
2011 control period. If a State’s Hg
allocations are approved by then, the
Agency may record State allocations for
the 2011 control period. However, for
any State for which a State Plan or State
allocation methodology is not approved
by December 1, 2008, EPA would record
EPA-determined Hg allocations for
2011. Therefore, if a State obtained State
Plan or State allocation methodology
approval after December 1, 2007 but
before December 1, 2008, the State’s Hg
allocations may be recorded in source
accounts for the 2011 control period.
The Agency proposes to record Hg
allocations in source accounts by
December 1, 2009 for the 2012 and 2013
control periods. Therefore, if a State
obtained State Plan or State allocation
methodology approval after December 1,
2008 but before December 1, 2009, the
State’s Hg allocations may be recorded
in source accounts for the 2012 and
2013 control periods. However, for any
State for which a State Plan or State
allocation methodology is not approved
by December 1, 2009, the EPA would
record EPA-determined Hg allocations
for 2012 and 2013.
Beginning in 2010 and each year
thereafter, EPA proposes to record EPAdetermined Hg allocations for the
Federal Hg trading program in source
accounts by December 1 for the control
period in the fourth year after the
recordation year, thereby providing
allowances about 3 years in advance for
sources to plan their compliance
strategies. For example, EPA would
record allocations for the 2014 control
period by December 1, 2010.
Table III–1, below, summarizes the
Agency’s proposed timing for recording
Hg allocations in EGU source accounts
for the Federal Hg trading program. The
table shows the timing through the 2016
control period. Timing for subsequent
control periods would follow the same
pattern as is shown for 2013–2016 (i.e.,
allocations would be recorded by 3
years in advance of the control period).
ycherry on PROD1PC64 with PROPOSALS2
TABLE III–1.—PROPOSED RECORDATION DEADLINES FOR HG ALLOCATIONS FOR THE FEDERAL HG TRADING PROGRAM 6
Deadline by which Hg allocations are recorded for Federal Hg trading program (EPA-determined allocations or State-determined allocations)
CAMR control period
2010
2011
2012
2013
......................................................
......................................................
......................................................
......................................................
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December
December
December
December
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1,
1,
1,
2007
2008
2009
2009
..............................................................................................
..............................................................................................
..............................................................................................
..............................................................................................
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E:\FR\FM\22DEP2.SGM
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Time between
recordation date and
beginning of control
period
About
About
About
About
2
2
2
3
years.
years.
years.
years.
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TABLE III–1.—PROPOSED RECORDATION DEADLINES FOR HG ALLOCATIONS FOR THE FEDERAL HG TRADING PROGRAM 6—
Continued
CAMR control period
Deadline by which Hg allocations are recorded for Federal Hg trading program (EPA-determined allocations or State-determined allocations)
2014 ......................................................
2015 ......................................................
2016 ......................................................
December 1, 2010 ..............................................................................................
December 1, 2011 ..............................................................................................
December 1, 2012 ..............................................................................................
The Agency intends to publish its
determination of Hg allocations for
2010–2014 in a single NODA with
opportunity for submission of objections
to the determination. Starting in 2011,
the Agency would publish its
determination of Hg allocations with
opportunity for submission of objections
prior to July 31 of each year for the
control period 4 years from the year of
publication. For example, we would
publish EPA-determined Hg allocations
for the 2015 control period by July 31,
2011.
For States choosing to submit a State
Plan for CAMR, the Agency suggests
they could consider designating Hg
allocation provisions as being submitted
both as part of a State Plan and as a
State allocation methodology
submission in the context of the Federal
Plan. Because the Agency anticipates
that we would be able to approve State
allocation methodologies more quickly
than State Plans, a State could, by
designating its Hg allocation provisions
as a State allocation methodology (as
well as being part of a State Plan),
potentially allow for the allocation
provisions to be approved more quickly.
This might have benefit, for example, in
a situation in which it was not feasible
to approve a State’s State Plan before
December 1, 2007. If the Hg allocation
provisions could be approved by
December 1, 2007, then the State’s Hg
allocations may be recorded in source
accounts in the context of the Federal
Plan. Until the State Plan was
subsequently approved, the other
elements of the trading program would
be controlled by the Federal Plan.
Provisions for withdrawal of the Federal
Plan for a State are discussed elsewhere
in this preamble.
ycherry on PROD1PC64 with PROPOSALS2
2. Hg Allowance Allocation
Methodology
In this action, the Agency is
proposing its Hg allocation methodology
for the Federal Hg cap and trade
program. In CAMR, EPA included an
example allocation methodology for
States (offered for informational
guidance only). This methodology
distributes allocations to existing coal-
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fired Utility Units based on historic
baseline heat input and reflects
adjustments based on coal type.
Allocations are calculated annually to
take into account new units on a
modified-output basis, where output
would be converted into heat input
using specified conversion factors. This
methodology also utilizes a new unit
set-aside for new coal-fired Utility Units
that have not yet established baseline
data to be used for updating or are
otherwise not yet included in the
updating. In this action, for the reasons
discussed in CAMR (70 FR 28627), EPA
is proposing the same methodology for
the Federal Plan.
For existing units, the proposed Hg
allocation methodology uses inputbased allocations, adjusting baseline
heat input for each year of data by
factors based on coal type, as discussed
below. As in the example allocation
methodology in the CAMR model rule,
for existing units, the Agency proposes
to calculate baseline heat input as the
average of the 3 highest amounts of a
unit’s adjusted heat input for 5 years
(2000–2004). EPA believes that this
approach provides baseline heat input
data that reasonably represents normal
operating conditions. Relevant data for
these years is currently available. EPA
also asks for comment on two
modifications to this approach: (1)
Using heat input based on 3 or 4 years
of data rather than 5 years; or (2) using
heat input data from 2001 through 2005
rather than 2000 through 2004.
For new units that have established 5
years of baseline data, EPA proposes
that allocations will be based on
generation using a modified output
approach (described below) to convert
output to heat input, and allocations to
existing units would be updated to take
into account new generation, because
these new units would receive
allocations from the pool of allowances
shared with existing sources. New units
that have not yet established baseline
data or that are otherwise not yet
included in the updating would receive
allowances from a new unit set-aside.
Under the proposed method,
allocations are made from the given
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Time between
recordation date and
beginning of control
period
About 3 years.
About 3 years.
About 3 years.
State’s EGU Hg budget covered by a
Federal Plan for the first five control
periods (2010 through 2014) of the
Federal Hg cap-and-trade program for
existing EGU sources on the basis of
historic baseline heat input. Consistent
with CAMR, EPA is proposing January
1, 2001 as the cut-off on-line date for
considering Utility Units as existing
units, so that there are at least 5 years
of operating data, i.e., data for 2000
through 2004 (the Agency also seeks
comment on, if data for 2001 through
2005 were used instead, the use of
January 1, 2002 as the cut-off on-line
date). The allowances for 2015 and later
will be determined from the State’s EGU
Hg budget annually, 4 years in advance,
taking into account output data from
new units with established baselines
(modified by the specified conversion
factors to yield heat input numbers). As
new coal-fired Utility Units enter into
service and establish baselines, they are
allocated Hg allowances in proportion
to their share of the total calculated heat
input (which is existing units’ adjusted
heat input plus new units’ modified
output). Once a baseline heat input is
established for a new or existing EGU,
this baseline heat input does not
change. Allowances allocated to existing
Utility Units slowly decline as their
share of total calculated heat input
decreases with the entry of new Utility
Units.
New coal-fired Utility Units that have
entered service in States or areas of
Indian country that have an Hg
emissions budget, but have not yet
started receiving Hg allowances through
the update, would receive allowances
each year after the first year of
commercial operation from a new unit
set-aside. Consistent with CAMR, the
new unit set-aside would be equal to 5
percent of a State’s Hg emission budget
for the years 2010–2014 and 3 percent
of a State’s Hg emission budget for the
subsequent years. New Utility Units
would begin receiving Hg allowances
from the set-aside for the control period
immediately following the control
period in which the new Utility Unit
commences commercial operation,
based on the Utility Unit’s Hg emissions
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from the preceding control period (a
new Utility Unit would not be allocated
allowances for the control period in
which it commences operation). For
instance, a source might be required to
hold Hg allowances during its start-up
year, but would not receive an
allocation for that year. Under the
proposed CAMR Federal Plan, EPA
would allocate Hg allowances from the
set-aside to all new Utility Units in any
given year as a group. If there are more
Hg allowances requested than in the setaside, allowances would be distributed
on a pro-rata basis. Allowance
allocations for a given new Utility Unit
in following years will continue to be
based on the prior year’s Hg emissions
until the new Utility Unit establishes a
baseline, is treated as an existing Utility
Unit, and is allocated Hg allowances
through the updating process.
Under the proposed Federal Plan,
after 5 years of operation, a new EGU
would have an adequate operating
baseline of output data to be
incorporated into the calculations for Hg
allocations to all affected Utility Units.
The average of the highest 3 years from
these 5 years would be converted to a
modified output value that would be
used as the unit’s baseline heat input for
determining the new Utility Unit’s Hg
allowance allocation. The new unit’s
modified output would be calculated by
multiplying its gross output (expressed
in kWh) by a heat rate conversion factor
of 7,900 British thermal units per
kilowatt-hour (Btu/kWh). The 7,900
Btu/kWh value for the conversion factor
is an average of heat-rates for new
pulverized coal plants and new
integrated gasification combined cycle
(IGCC) coal plants (based upon
assumptions in the Energy Information
Administration’s (EIA’s) Annual Energy
Outlook (AEO) 2004). (See EIA,
‘‘Annual Energy Outlook 2004, with
Projections to 2025,’’ January 2004 and
https://www.eia.doe.gov/oiaf/archive/
aeo04/assumption/tbl38.html.) As
discussed in CAMR, a single conversion
rate would create consistent and level
incentives for efficient generation,
rather than favoring new Utility Units
with higher heat rates.
New units would update their heat
input numbers only once—for the initial
5-year baseline period after they start
operating. As in the CAMR State Plan
example methodology, existing units as
a group would not update their heat
input. This eliminates the potential for
a generation subsidy because current or
future operating behavior would not
impact the units’ allocations. Retired
Utility Units would continue to receive
Hg allowances indefinitely, thereby
creating an incentive to retire less
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efficient Utility Units instead of
continuing to operate them in order to
maintain the Hg allowance allocations.
a. Adjustments to Heat Input Data by
Coal Adjustment Factors. For the
reasons discussed in CAMR, EPA is
proposing the use of heat input
adjustment factors, differentiated by
coal type, for the Hg allocation process.
Consistent with the methodology used
to establish the State Hg budgets in
CAMR, EPA is proposing that these
adjustment factors primarily reflect the
relative abilities of bituminous,
subbituminous, and lignite coals to be
controlled for Hg through the use of
NOX and SO2 controls. Consistent with
CAMR, EPA is proposing to use the coal
adjustment factors of 1.0 for bituminous
coals, 1.25 for subbituminous coals, and
3.0 for lignite coals for adjusting
baseline heat input.
During the CAMR reconsideration
process, EPA performed an analysis
comparing the allocation approach of
the model rule with allocations based
on pure (unadjusted) heat input (see 71
FR 33388). In comparing these two
allocation approaches, EPA used the
same methodology that was used to
compare EPA’s chosen allocations
approach for NOX and SO2 with
alternative approaches for the CAIR
Notice of Final Action on
Reconsideration (see 70 FR 25328). This
analysis compares the extent to which
State budgets reflect projected emissions
under CAIR as well as under CAIR and
CAMR.
EPA followed the approach presented
in the CAIR Statewide NOX Budgets
Calculations technical support
document (TSD) (https://www.epa.gov/
cair/pdfs/0053-2228.pdf) which states
‘‘To quantitatively evaluate whether the
fuel factor approach is providing States
with annual NOX budgets that more
closely reflected their projected
emissions, EPA calculated the
arithmetic mean of the (absolute)
difference between a State’s coverage
ratio and 1.0 (i.e., the value representing
a State’s projected emissions matching
the State’s CAIR NOX budget). In other
words, EPA calculated how far off the
State’s coverage ratio was from 1.0, and
then averaged these values for each
approach.’’ Under this approach, the
closer this mean value is to zero, the
more the allowance allocation approach
minimizes disparities between State
budgets and emissions.
For Hg, EPA compared the State
budgets to projected emissions for CAIR,
which is the appropriate baseline for
evaluating the CAMR State budgets
(rather than the 1999 ICR data), as well
as projected emissions under CAMR.
Using projected CAIR emissions for
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2010, the resulting average absolute
differences were 0.57 for the coaladjustment factor approach under
CAMR, and 0.63 for the pure heat input
approach. Using projected CAMR
emissions for 2010, the resulting average
absolute differences were 0.59 for the
coal-adjustment approach under CAMR
and 0.68 for the pure heat input
approach. Likewise, for 2020, using
projected CAIR emissions, the resulting
average absolute differences were 0.26
for the coal-adjustment approach under
CAMR and 0.30 for the pure heat input
approach. Using projected CAMR
emissions for 2020, the resulting average
absolute differences were 0.32 for the
coal-adjustment approach, and 0.36 for
the pure heat input approach.
This analysis suggests that while the
two allocation methods yield results
that are similar, the adjusted heat input
approach used by EPA in the final
CAMR minimizes the discrepancies
between State budgets and State
emissions more effectively than a pure
heat input approach. This analysis is
explained in the TSD and spreadsheet
titled ‘‘CAMR Hg Allowance Allocation
Approach Analysis,’’ available in the
docket.
EPA recognizes that units may have
been blending coals or may have
switched coals during the baseline
period. For this reason, EPA is
proposing to adjust baseline heat input
data separately for each year in order to
reflect the coal burned during that year.
If a unit was blending coal during any
year, a weighted average coal
adjustment factor would be used. This
approach is consistent with the example
allocation approach included in the
CAMR model rule.
In CAMR, EPA adjusted coal type for
the calculation of State budgets using
coal use data from the 1999 ICR. EPA
does not routinely collect coal type and
use data, and, therefore, proposes to
adjust baseline heat input data using
EIA plant-level data for the years that
comprise the baseline. Because the EIA
data are reported at the plant level, EPA
proposes to apply the same coaladjustment factor to all affected units at
a given plant.
EPA is not proposing adjustments by
coal type with the modified output
approach because we do not want the
allocation process to favor the use of
any particular rank of coal for new coal
units. In other words, EPA does not
want to provide an incentive for new
units to burn a certain type of coal in
order to increase the number of
allowances they receive.
b. New Cogeneration Units. For new
cogeneration Utility Units, their shares
of the Hg allowances would be
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calculated by converting the available
thermal output (Btu) of useable steam
from a boiler to an equivalent heat input
by dividing the total thermal output
(Btu) by a general boiler/heat exchanger
efficiency of 80 percent. For new
cogeneration units that are combustion
turbines, electrical output would be
converted to heat input, the heat energy
of steam from the heat recovery steam
generator would be converted to heat
input, and the units’ shares of the Hg
allowances would be based on the sum
of these heat inputs. Steam output, like
electrical output, is a useable form of
energy that can be utilized to power
other processes. Because it would be
nearly impossible to adequately define
the efficiency in converting steam
energy into the final product for all of
the various processes, this approach
focuses on the efficiency of a
cogeneration unit in capturing energy in
the form of steam from the fuel input.
c. Sources of Data for Hg Allocations.
The Agency proposes for the Federal
Plan Hg allocations to use heat input
and fuel type data reported to EPA’s
Electronic Data Reporting (EDR) system,
where available, and to use best
available heat input and fuel type data
(e.g., data from the EIA) where EDR data
are not available.
D. Allowance Banking
EPA proposes to include banking as a
feature in the Federal Hg Budget
Trading Program for the reasons set
forth in CAMR. Proposed 40 CFR part
62, subpart LLL, sets forth the same
provisions for banking and the
management of banked allowances as
specified in 40 CFR part 60, subpart
HHHH. In accordance with these
provisions, Hg allowances held, and not
used for compliance in the year for
which they are issued, may be banked
for future use.
Banking is the retention of unused
allowances from one calendar year for
use in a later calendar year. Banking
allows sources to make reductions
beyond required levels and ‘‘bank’’ the
unused allowances for use later.
Generally, banking has several
advantages. First, banking results in
early reductions as companies overcontrol their units’ emissions; it is very
unlikely that significant levels of early
reductions would occur without
banking. Second, banked allowances
can be used at any time, so they provide
flexibility for companies to respond to
growth and changing marketplace
conditions over time as well as any
unforeseen Hg control technology
difficulties. Although banking can result
in emissions below the cap on
allowances allocated in early years of
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the program and emissions above the
cap level in the later years of the
compliance period, the permanency of
the cap in each phase of the program
ensures that banking does not result in
an increase in cumulative emissions.
This is an important trade-off for getting
early reductions.
Therefore, like in subpart HHHH (the
State Plan model cap-and-trade rule),
EPA is proposing that banking would be
allowed without restriction after the
start of the Federal Hg cap-and-trade
program in 2010.
E. Source-Level Emissions Monitoring
and Reporting Requirements
CAMR added subpart I to 40 CFR part
75. (Although EPA is requesting
comment on the monitoring, reporting,
and recordkeeping requirements in the
proposed Federal trading rule, EPA is
not requesting comments on 40 CFR
part 75, which is described here only for
the convenience of the reader.) 40 CFR
part 75, subpart I, specifies the basic
emission monitoring, reporting, and
recordkeeping requirements necessary
to administer an Hg trading program for
new and existing Hg Budget units.
CAMR also revised the regulatory
language at several places in 40 CFR
parts 72 and 75 to include specific Hg
monitoring definitions and provisions,
in support of 40 CFR part 75, subpart I.
Mercury Budget units would be
required to comply with these Hg
monitoring provisions as part of a
Federal Hg cap-and-trade program. The
changes to 40 CFR part 75 are discussed
in greater detail in CAMR (70 FR
28633).
Monitoring and reporting of an
affected source’s emissions are integral
parts of any cap-and-trade program.
Consistent and accurate measurement of
Hg emissions ensures that each Hg
allowance actually represents one ounce
of emissions and that one ounce of
reported emissions from one source is
equivalent to one ounce of reported
emissions from another source. This
establishes the integrity of each
allowance and instills confidence in the
market mechanisms that are designed to
provide sources with flexibility in
achieving compliance. In addition,
those flexibilities result in substantial
cost savings to the industry and to the
public consumer of electricity.
Given the variability in the unit type,
manner of operation, and fuel mix
among coal-fired Utility Units, EPA
believes that Hg emissions must
generally be monitored continuously in
order to ensure the precision, reliability,
accuracy, and timeliness of Hg
emissions data necessary to support the
cap-and-trade program. For application
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in both the Federal and State trading
programs, CAMR allows two
methodologies for continuously
monitoring Hg emissions: (1) Hg
continuous emission monitors (CEMS);
and (2) sorbent trap monitoring systems.
EPA believes it is reasonable to expect
that both technologies will be welldeveloped and commercially available
by the time CAMR monitoring
requirements take effect in 2009.
As provided in CAMR, for affected
sources with Hg emissions at or below
a specified threshold value, 40 CFR
75.81(b) provides additional regulatory
flexibility by allowing default Hg
concentrations obtained from periodic
Hg emission testing to be used to
quantify Hg mass emissions, instead of
continuously monitoring the Hg
concentration. The use of this low mass
emitter option is restricted to sources
that emit no more than 29 lb (464
ounces) of Hg per year. The rationale for
this threshold is provided in CAMR (70
FR 28633–28635).
The amendments to 40 CFR part 75
set forth the specific monitoring and
reporting requirements for Hg mass
emissions necessary for a cap-and-trade
program. The provisions of 40 CFR part
75 are used in both the Acid Rain and
the NOX Budget Trading programs, and
most sources affected by CAMR are
already meeting the requirements of 40
CFR part 75 to monitor SO2 and/or NOX
for one or both of those programs.
In order to ensure program integrity,
the proposed Federal trading rule
requires year-round 40 CFR part 75
monitoring and reporting for Hg
emissions for all Hg Budget units.
Deadlines for monitor certification and
other details are specified in the
proposed Federal trading rule. EPA
believes that if these provisions are
implemented, emissions will be
accurately and consistently monitored
and reported from unit-to-unit and from
State-to-State, ensuring the overall
integrity of the Hg trading program.
As is required for SO2 and NOX
emissions data in the Acid Rain
Program and the NOX Budget Trading
Program, Hg emissions data will be
provided to EPA on a quarterly basis in
a format specified by the Agency and
submitted to EPA electronically using
EPA-provided software. We found this
centralized reporting requirement
necessary to ensure consistent review,
checking, and posting of the emissions
and monitoring data from all affected
sources, which contributes to the
integrity and efficiency of the trading
program.
Finally, consistent with the current
requirements in 40 CFR part 75 for the
Acid Rain Program and the NOX Budget
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Trading Program, CAMR allows sources
to petition for an alternative to any of
the specified monitoring, reporting, or
recordkeeping requirements in the final
rule. This provision also provides
sources with the flexibility to petition to
use an alternative monitoring system
under 40 CFR part 75, subpart E, as long
as the requirements of 40 CFR 75.66 are
met.
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F. Compliance and Penalties
Penalty provisions for excess
emissions under the CAMR State model
trading rule are described in CAMR (70
FR 28624). The Agency intends the
penalty provisions for excess emissions
in the Federal Plan trading rule to be
identical to the provisions in CAMR.
Under CAMR, for the Hg cap-and-trade
program, any source found to have
excess emissions must surrender
allowances from the next control period
equal to three times the excess
emissions. This includes a one-for-one
offset of, and an additional two-for-one
surrender for, each ounce of excess
emissions.
G. Elements of the Federal Hg Trading
Program That Differ From the State
Model Hg Trading Program
EPA proposes to make the Federal
and State Hg Budget Trading Programs
as similar as possible. Although EPA
has modeled proposed 40 CFR part 62,
subpart LLL, largely after 40 CFR part
60, subpart HHHH, finalized under
CAMR, EPA also proposes some
revisions to 40 CFR part 60, subpart
HHHH, that would integrate the two
trading programs and would generally
also be reflected in proposed 40 CFR
part 62, subpart LLL. EPA notes that
discussion of the evolution of the Hg
Budget Trading Program is set forth in
the SNPR at 69 FR 12403 and in CAMR
at 70 FR 28624. The following provides
a discussion of the sections in 40 CFR
part 62, subpart LLL, that incorporate
certain differences from the
corresponding sections in subpart 40
CFR part 60, HHHH, to provide for
Federal implementation of the Hg
Budget Trading Program.
The general provisions explain that
proposed 40 CFR part 62, subpart LLL,
sets forth the provisions for the Federal
Hg Budget Trading Program. For 40 CFR
part 62, subpart LLL, EPA is proposing
to use essentially the same definitions
as those for 40 CFR part 60, subpart
HHHH, revised as proposed in this
action.
With regard to the Hg allowance
allocations under 40 CFR part 62,
subpart LLL, these provisions are the
same as the example allocation
methodology provisions in 40 CFR part
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60, subpart HHHH, except that the
Administrator, rather than the State
permitting authority, would allocate Hg
allowances under the Federal Hg Budget
Trading Program. This reflects the fact
that the Federal Hg Budget Trading
Program would be Federally
implemented, rather than implemented
by the State as under CAMR. A detailed
discussion of the allocation of emission
allowances under the Federal Plan is
provided in Section III.C, above.
40 CFR part 62, subpart LLL, also
addresses monitoring and reporting
requirements including, among other
things, general requirements, initial
certification and recertification
procedures, out of control periods,
notifications, recordkeeping and
reporting, and petitions. These
provisions are essentially the same as
the monitoring-related provisions of 40
CFR part 60, subpart HHHH. The
differences between the provisions
reflect the fact that administration of the
monitoring requirements is overseen by
the Administrator, rather than by the
Administrator and the permitting
authority as in the State Plan Hg model
trading program. As a result, for
example, monitoring certification
applications are submitted to the
appropriate EPA Regional Office and the
Administrator, not the permitting
authority, will act on the applications.
Further, the Administrator handles all
audit decertifications and all petitions
for alternatives to the monitoring
requirements.
EPA is proposing these monitoring
provisions under 40 CFR part 62,
subpart LLL, for the reasons set forth
both in CAMR and in order to minimize
differences between the Federal and
State Hg Budget Trading Programs. In
particular, for the reasons set forth in
CAMR, EPA proposes that Hg budget
units be required to meet the
monitoring, reporting, and
recordkeeping requirements for Hg
monitoring in 40 CFR part 75, subpart
I (70 FR 28633).
IV. Proposed Revisions of the CAMR
State Model Cap-and-Trade Program
Rule
EPA is proposing several revisions of
the CAMR State model cap-and-trade
program. Some of the proposed
revisions are necessary to integrate the
State model Hg trading program and the
proposed Federal Hg trading program,
while other proposed revisions reflect
needed technical and clarifying changes
and are consistent with the analogous
provisions of the proposed Federal Hg
trading program.
In particular, several of the definitions
of terms are proposed to be revised. For
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example, the definitions of ‘‘Hg
designated representative’’ and
‘‘alternate Hg designated representative’’
would be modified to require that the
respective individuals designated for
these positions be the same individuals
as designated, for a given source, as the
designated representative and alternate
designated representative under all
applicable CAIR trading programs. (In
order to implement this change, new
definitions for ‘‘CAIR NOX source’’,
‘‘CAIR NOX Ozone Season source’’, and
CAIR SO2 source’’ would be added.)
This would greatly simplify the
administration of the allowance tracking
systems for the trading programs and
obviate the need for the requirement
(which would be eliminated from the
recordkeeping and reporting provisions)
that quarterly emissions reports, which
include emissions data for all trading
programs applicable to the unit
involved, be signed by more than one
individual.
As a further example, certain new
definitions would be added (‘‘municipal
waste,’’ ‘‘replacement,’’ and ‘‘solid
waste incineration unit’’) and certain
definitions would be modified
(‘‘cogeneration unit,’’ ‘‘commence
commercial operation,’’ and ‘‘commence
operation’’) to reflect the revised
applicability provisions for the Hg
trading program and to clarify and
streamline the language in the
definitions. In the CAMR Notice of Final
Action on Reconsideration (71 FR
33388), EPA revised the definition of
‘‘electric generating unit or EGU’’ in 40
CFR 60.24(h) and the applicability
provisions of the State model trading
rule (40 CFR 60.4104) to: (1) Exempt
certain solid waste incineration units
from CAMR; (2) limit applicability to
coal-fired units serving, as of November
15, 1990 or any time later, a generator
with a greater than 25 MWe nameplate
capacity producing electricity for sale;
and (3) clarify the language concerning
cogeneration units. In 40 CFR 60.24(h),
EPA also added definitions for
‘‘municipal solid waste’’ and ‘‘solid
waste incineration unit.’’ The new and
revised definitions, in the State Plan Hg
model trading rule, related to
applicability would be consistent with
the definitions in 40 CFR 60.24(h) and
the applicability provisions in 40 CFR
60.4104.
In addition, the definitions of
‘‘allocate,’’ ‘‘Hg allowance,’’ and ‘‘Hg
Budget Trading Program’’ would be
modified to provide for integrated
operation of the State Hg trading
programs administered by EPA and
Federal Hg trading program. Mercury
allowances issued under either type of
program would be an ‘‘Hg allowance’’
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usable for meeting the allowanceholding requirement under the State
model trading program (or Federal Hg
trading program) regulations. In
addition, the definition of ‘‘maximum
design heat input’’ would be simplified,
and the definition of ‘‘nameplate
capacity’’ would be clarified.
Further, the retired unit exemption
provisions would be revised to clarify
that the appeal procedures generally
applicable to final actions of the
Administrator would be applicable to
final actions of the Administrator with
regard to retired units. The rule text
concerning the appeal procedures
themselves would be revised simply to
reference part 78 of the Acid Rain
Program regulations, and part 78 would,
in turn, be revised to refer specifically,
where appropriate, to the Hg trading
programs in the same way as part 78
currently refers specifically, where
appropriate, to the CAIR trading
programs.
In addition, the provisions listing the
content of a certificate of representation
are revised to clarify that the
identification of each unit covered by
the certificate of representation includes
identification and nameplate capacity of
each generator served by the unit. EPA
believes that the current rule language
requiring ‘‘identification’’ of each unit
subject to the trading program is already
broad enough to encompass such
information concerning each generator
served by the unit, particularly since
only a unit serving a generator with a
nameplate capacity greater than 25
MWe can be subject to the Hg trading
programs. However, EPA is proposing
the revised language to make it clear
that generator information is required in
the certificate of representation.
EPA also proposes technical revisions
to the provisions concerning the
reflection in certificates of
representation of the owners and
operators of the source and units
involved. The changes would make it
clear that all owners and operators must
be listed and that those that should be,
but are not, listed are still bound by the
certificate of representation and the
CAMR designated representative.
Further, new provisions concerning
designated representatives and
authorized account representatives
would be added to clarify that such
individuals may use agents in order to
make electronic submissions. The
existing State model trading program
regulations provide for certain
submissions (i.e., certificates of
representation, applications for general
account, allowance transfers, and
quarterly emissions reports) required to
be ‘‘in a format prescribed’’ or ‘‘in a
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format specified’’ by the Administrator.
(The terms ‘‘prescribed’’ and
‘‘specified’’ have the identical meaning
in these contexts.) These submissions
may be made, or in the case of quarterly
emissions reports must be made,
electronically. Although the formats for
the Hg Budget Trading Program have
not yet been developed, other EPAadministered trading programs (i.e., the
Acid Rain Program and the NOX Budget
Trading Program) have analogous
language concerning submission formats
and have existing, prescribed formats
for submissions. The electronic formats
prescribed by the Administrator for the
Acid Rain Program and the NOX Budget
Trading Program allow the designated
representative or authorized account
representative, as appropriate, to
designate other individuals (‘‘agents’’)
who may make the electronic
submissions for the designated
representative or authorized account
representative, who is fully bound by
the agent’s actions. EPA maintains that
the references in the Acid Rain Program
and NOX Budget Trading Program
regulations to ‘‘prescribed’’ (or
‘‘specified’’) formats, coupled with the
existing electronic formats, provide the
legal authority necessary for designated
representatives and authorized account
representatives to use agents to make
electronic submissions in the applicable
trading programs. EPA plans to adopt
electronic formats for the Hg Budget
Trading Program that, similarly, allow
for the use of agents. EPA believes that
the existing references in the CAMR
State model trading program regulations
to ‘‘format[s] prescribed’’ or ‘‘specified’’
by the Administrator, when coupled
with the appropriate electronic formats,
will similarly provide the legal
authority necessary for the use of agents.
However, in order to remove any
uncertainty about such legal authority,
EPA proposes to add provisions to the
State Hg model trading program
regulations (and to include a provision
in the Federal Hg trading program
regulations) that explicitly authorize the
use of agents for electronic submissions.
In addition, in the permitting
provisions, EPA proposes to revise the
deadline for submission of Hg Budget
permit applications to run from the later
of January 1, 2010 or the date on which
the unit commences commercial
operation, rather than the date on which
the unit simply commences operation.
A unit’s date of commencement of
commercial operation is not likely to
range from more than a few days to a
few months later than the unit’s date of
commencement of operation since
owners and operators of electric
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generating units generally prefer to
minimize using fuel without producing
electricity. Moreover, running the
permit application deadline from the
commencement of commercial
operation avoids the need for a complex
definition of ‘‘commence operation’’ to
account for units that are not subject to
the Hg Budget Trading Program when
they first combust fuel and that
subsequently become Hg Budget units.
Further, EPA proposes certain
technical corrections in the Hg
allowance allocation provisions. In
particular, the current provisions
concerning timing of submission of unit
allocations by the permitting authority
to the Administrator provide that if the
unit allocations are not submitted on
time, the Administrator will assume that
the allocations are the same as in the
prior year. If the year for which
allocations are submitted late is 2018
(the beginning of phase II of the CAMR
Hg Budget trading program), the
Administrator will assume that the
allocations equal the allocations for the
control period in 2017, multiplied by
the amount of ounces (i.e., tons
multiplied by 32,000 ounces/ton) of Hg
emissions in the applicable State trading
budget under § 60.4140 for 2018 and
thereafter and divided by such amount
of ounces of Hg emissions for 2010
through 2017. EPA is removing these
provisions both for existing and new
units because they seem unlikely to be
used and are unduly complicated. There
are no comparable provisions in the
proposed Federal Hg trading program
regulations.
EPA is also proposing to revise the
current provisions for new unit
allocations that provide that a new unit
is eligible for allocations from the new
unit set-aside until that unit has
operated long enough to develop a
baseline heat input using the 3 highest
figures for converted control period heat
input out of such figures for the first 5
years of operation. At that point, the
unit is supposed to be allocated
allowances from the pool of allowances
allocated to all units that have a
baseline heat input. However,
allowances for units with baselines are
allocated a number of years in advance
of the first year for which such
allowances may be used to meet the
allowance-holding requirement.
Consequently, it is possible for a new
unit to have a baseline as of a given year
but find that no more allowances are
available for that year for units with
baselines because the allowances for
that year were allocated before the time
when the new unit’s baseline was
developed. A new unit could find that,
for some years, it was both ineligible for
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the new unit set-aside and unable to
obtain an allocation from the pool for
units with baselines. EPA intended that
new units move seamlessly from newunit-set-aside eligibility to units-withbaselines allocations and not to fall in
between the two types of allocation
procedures. EPA proposes to revise the
allocation provisions to clarify that a
new unit continues to be eligible for the
new unit set-aside so long as the unit is
not allocated allowances from the pool
for units with baselines allocations
either because the new unit does not yet
have a baseline or because all the
allowances for units with baselines have
already been allocated for the year
involved.
EPA also proposes technical changes
that make it clear that a separate request
for new-unit-set-aside allowances must
be submitted for each control period for
which they are sought and must be
submitted by May 1 of that control
period. This approach will reasonably
put the burden on owners and operators
to inform the State permitting authority
each year. This will ensure that the
State permitting authority can keep
track, for each control period in the
future, of which units are seeking newunit-set-aside allowances for that
control period. These submission
deadlines will give the State permitting
authorities more time to process (which
may include, when appropriate,
opportunity for public comment) the
requests in time to submit the
allocations to the Administrator for
recordation by December 1.
In addition, EPA proposes to adopt
technical changes to the provisions for
recordation of allowance allocations.
For example, the current provisions
require the Administrator to record the
initial allocations for 2010–2014 by
December 1, 2006. Because State Plans
were not due until November 17, 2006,
EPA cannot review and approve all
State plans in time to record allowance
allocations in those plans by December
1, 2006, which date EPA proposes to
change to December 1, 2007. Further,
the current provisions also require the
recordation of allocations for
subsequent years to occur only after
completion of the end-of-year
compliance determination process for a
previous year. Because of the need to
finalize emissions data for a year before
the compliance determination process
for that year can be completed, the
current provisions may delay
recordation for a number of months.
However, as a matter of logic, there is
no necessary connection between one
year’s compliance determination and
the future year’s allocation recordation.
Consequently, EPA proposes to remove
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the connection made in the current
provisions and is setting an
independent deadline (December 1) for
allocation recordation, which will result
in recordation several months earlier
than under the current provisions.
Further, EPA proposes technical
changes to the provisions referring to
when an allowance transfer by the
owner of an allowance to another
allowance tracking system account is
‘‘correctly submitted.’’ The changes
would clarify that a ‘‘correctly
submitted’’ allowance transfer is one
that references allowances that both:
Were in the owner’s allowance tracking
system account when the allowance
transfer form was submitted to the
Administrator; and continue to be in
such account when the allowance
transfer form is processed by the
Administrator.
In addition, EPA proposes to revise
the provisions for deducting allowances
to determine compliance with the
allowance-holding requirement under
the trading programs. The proposed
revisions would not change the
requirements that an allowance usable
for compliance: Be allocated for the
year, or a year before the year, for which
compliance is being determined; and be
in or covered by a proper request for
transfer into the source’s compliance
account by the allowance transfer
deadline. However, the statement
indicating that the allowance must also
not be necessary to account for excess
emissions for a prior year would be
removed because it is confusing and
inconsistent with the compliance
procedures that EPA has been using in
its ongoing cap-and-trade programs (i.e.,
the Acid Rain Program and the NOX
Budget Trading Program).
In addition, EPA proposes to revise
certain provisions concerning the use of
substitute data when the owner or
operator of a unit adds a new stack or
flue and fails to meet the deadline for
monitoring certification. EPA proposes
to remove procedures that would seem
to allow for substitute data other than
data reflecting maximum potential
emissions. This is proposed because
EPA believes that the removed
provisions would actually still result in
the use of data reflecting maximum
potential emissions.
Further, EPA proposes to remove a
provision that separately requires units
to monitor heat input. The provision is
unnecessary because heat input
monitoring is already explicitly required
in the monitoring provisions in
§ 60.4170.
A few changes are proposed for some
other provisions (e.g., revising the
definitions of ‘‘CAIR NOX Trading
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Program,’’ ‘‘CAIR NOX Ozone Season
Trading Program,’’ and ‘‘CAIR SO2
Trading Program’’ to be consistent with
the definitions of these terms in the
CAIR trading rules) of the State model
trading rule. These other changes are
similarly technical or clarifying in
nature. All of the above-proposed
changes are consistent with the
analogous provisions in the proposed
Federal Hg trading program.
V. Proposed Revisions of the Acid Rain
Program Regulations
A few changes are proposed for the
Acid Rain Program regulations. EPA
proposes to revise the provisions
concerning alternate designated
representatives in order to simplify the
provisions. Specifically, EPA proposes
to remove 40 CFR 72.22(e), which
allows in certain limited circumstances
the appointment of two alternate
designated representatives, rather than
the customary one alternate designated
representative, for an affected source
under the Acid Rain Program. This
option has rarely been used: Out of the
approximately 1,500 affected plants
currently in the program, only 17
currently have two alternate designated
representatives. As discussed above in
Section IV of this preamble, the Acid
Rain Program regulations already allow
a designated representative or alternate
designated representative to use agents
to perform online many of the same
tasks that a second alternate designated
representative can perform under the
existing § 72.22(e). Since § 72.22(e)
seems to be unnecessary and is rarely
used, EPA proposes to remove it in
order to simplify the provisions
applicable to alternate designated
representatives.
Further, as discussed above in Section
IV of this preamble, EPA proposes to
revise the appeal provisions of 40 CFR
part 78 to apply to the appeals
procedures to final actions of the
Administrator under the State Hg
trading program and the Federal Hg
trading program, just as these provisions
already apply to final Administrator
actions under the CAIR trading
programs. 40 CFR part 78 would be
revised to refer specifically, where
appropriate, to the Hg trading programs
in the same way as 40 CFR part 78
currently refers specifically, where
appropriate, to the CAIR trading
programs.
VI. Units Subject to the CAMR Federal
Plan and New Source Performance
Standards
This section describes the
relationship between the Federal Plan
and the NSPS finalized under CAMR in
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terms of applicability and Hg emission
limits. As discussed above and in
CAMR, CAMR added Hg to the list of
pollutants covered under 40 CFR part
60, subpart Da, by establishing emission
limits for new sources and guidelines
for existing sources.
CAMR finalized NSPS for new coalfired Utility Units, subcategorized by
coal type and, in some cases, unit type.
In addition to complying with these
standards, new Utility Units, along with
existing coal-fired Utility Units, subject
to the Federal Plan, will be subject to
the cap-and-trade provisions finalized
in CAMR and being proposed in this
Federal Plan. The State Hg emission
budgets are a permanent cap regardless
of growth in the electric sector and,
therefore, States, in the case of State
Plans, and EPA, in the case of Federal
Plan, have the responsibility of
incorporating new Utility Units in their
Hg emissions budgets.
VII. Statutory and Executive Order
Reviews
A. Executive Order 12866: Regulatory
Planning and Review
Under Executive Order (EO) 12866
(58 FR 51735, October 4, 1993), this
action is an economically ‘‘significant
regulatory action.’’ This determination
is made in view of this action’s
important policy implications and
potential effect on the economy of over
$100 million. Accordingly, EPA
submitted this action to the Office of
Management and Budget (OMB) for
review under EO 12866 and any
changes made in response to OMB
recommendations have been
documented in the docket for this
action.
This Federal Plan proposal represents
a Federal mandate to implement CAMR
(70 FR 28606) covering the same Hg
emissions reductions in the event that
States fail to implement CAMR. For this
reason, EPA is relying on the economic
analysis conducted for CAMR entitled
‘‘Regulatory Impact Analysis of the
Final Clean Air Mercury Rule.’’
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B. Paperwork Reduction Act
This action does not impose an
information collection burden under the
provisions for the Paperwork Reduction
Act (PRA), 44 U.S.C. 3501 et seq. The
PRA requirements of this rule are
satisfied through the Information
Collection Request (ICR) submitted to
OMB for review and approval as part of
CAMR. The burden of this proposed
rule is essentially the same as the
burden estimated for CAMR. There is a
modest transfer of burden from the
States to EPA if the Federal plan is
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implemented rather than the CAMR
State Plan. The overall total burden is
essentially unchanged. The Office of
Management and Budget (OMB)
previously approved the information
collection requirements contained in the
final CAMR regulations (40 CFR
60.40Da—60.52Da; 40 CFR 60.4100—
60.4199) under the provisions of the
PRA, and has assigned OMB control
number 2060–0567 and EPA ICR
number 2137.02. A copy of the OMB
approved ICR may be obtained from
Susan Auby, Collection Strategies
Division; U.S. Environmental Protection
Agency (2822T); 1200 Pennsylvania
Ave., NW., Washington DC 20460, or by
calling (202) 566–1672.
Burden means the total time, effort, or
financial resources expended by persons
to generate, maintain, retain, or disclose
or provide information to or for a
Federal agency. This includes the time
needed to review instructions; develop,
acquire, install, and utilize technology
and systems for the purposes of
collecting, validating, and verifying
information, processing and
maintaining information, and disclosing
and providing information; adjust the
existing ways to comply with any
previously applicable instructions and
requirements; train personnel to be able
to respond to a collection of
information; search data sources;
complete and review the collection of
information; and transmit or otherwise
disclose the information.
An agency may not conduct or
sponsor, and a person is not required to
respond to a collection of information
unless it displays a currently valid OMB
control number. The OMB control
numbers for EPA’s regulations in 40
CFR, after appearing in the preamble of
the final rule, are listed in 40 CFR part
9.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to notice and comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Small entities
include small businesses, small
organizations, and small governmental
jurisdictions.
For purposes of assessing the impacts
of today’s rule on small entities, small
entity is defined as: (1) A small business
as defined by the Small Business
Administration’s (SBA) regulations at 13
CFR 121.201; a small governmental
jurisdiction that is a government of a
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city, county, town, school district or
special district with a population of less
than 50,000; and (3) a small
organization that is any not-for-profit
enterprise which is independently
owned and operated and is not
dominant in its field.
After considering the economic
impacts of today’s proposed rule on
small entities, I certify that this action
will not have a significant economic
impact on a substantial number of small
entities. As was discussed in the final
CAMR, EPA determined that it was not
necessary to prepare a regulatory
flexibility analysis in conjunction with
this rulemaking. Although not required
by the RFA, the Agency conducted an
additional analysis of the effects of
CAMR on small entities in order to
provide additional information to States
and affected sources. This analysis is
detailed in both the final CAMR and the
‘‘Regulatory Impact Analysis of the
Final Clean Air Mercury Rule.’’ This
analysis found that CAMR would not
have a significant direct impact on a
substantial number of small entities.
This analysis is applicable to this
proposed rule.
We continue to be interested in the
potential impacts of the proposed rule
on small entities and welcome
comments on issues related to such
impacts.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates
Reform Act of 1995 (Pub. L. 104–4)
(UMRA), establishes requirements for
Federal agencies to assess the effects of
their regulatory actions on State, local,
and Tribal governments and the private
sector. Under UMRA section 202, 2
U.S.C. 1532, EPA generally must
prepare a written statement, including a
cost-benefit analysis, for any proposed
or final rule that ‘‘includes any Federal
mandate that may result in the
expenditure by State, local, and Tribal
governments, in the aggregate, or by the
private sector, of $100,000,000 or more
* * * in any one year.’’ A ‘‘Federal
mandate’’ is defined under UMRA
section 421(6), 2 U.S.C. 658(6), to
include a ‘‘Federal intergovernmental
mandate’’ and a ‘‘Federal private sector
mandate.’’ A ‘‘Federal
intergovernmental mandate,’’ in turn, is
defined to include a regulation that
‘‘would impose an enforceable duty
upon State, local, or Tribal
governments,’’ UMRA section
421(5)(A)(i), 2 U.S.C. 658(5)(A)(i),
except for, among other things, a duty
that is ‘‘a condition of Federal
assistance,’’ UMRA section
421(5)(A)(i)(I). A ‘‘Federal private sector
mandate’’ includes a regulation that
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‘‘would impose an enforceable duty
upon the private sector,’’ with certain
exceptions, UMRA section 421(7)(A), 2
U.S.C. 658(7)(A).
Before promulgating an EPA rule for
which a written statement is needed
under UMRA section 202, UMRA
section 205, 2 U.S.C. 1535, generally
requires EPA to identify and consider a
reasonable number of regulatory
alternatives and adopt the least costly,
most cost-effective, or least burdensome
alternative that achieves the objectives
of the rule.
EPA has determined that this rule
contains a Federal mandate that may
result in expenditures of $100 million or
more for State, local, and tribal
governments, in the aggregate, or the
private sector in any one year.
Accordingly, EPA prepared a written
statement for the final CAMR consistent
with the requirements of UMRA section
202. Furthermore, as EPA stated in the
rule, EPA is not directly establishing
any regulatory requirements that may
significantly or uniquely affect small
governments, including Tribal
governments. Thus, EPA is not obligated
to develop under UMRA section 203 a
small government agency plan.
Furthermore, in a manner consistent
with the intergovernmental consultation
provisions of UMRA section 204, EPA
carried out consultations with the
governmental entities affected by this
rule.
For the final CAMR, EPA conducted
an analysis of the potential economic
impacts anticipated of CAMR on
government-owned entities. The results
support EPA’s assertion in the NPR that
the proposed rule would not have a
disproportionate budgetary impact on
government entities. This analysis is
detailed in both the final CAMR and the
‘‘Regulatory Impact Analysis of the
Final Clean Air Mercury Rule.’’ This
analysis is applicable to this proposed
rule.
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E. Executive Order 13132: Federalism
Executive Order 13132, entitled
‘‘Federalism’’ (64 FR 43255, August 10,
1999), requires EPA to develop an
accountable process to ensure
‘‘meaningful and timely input by State
and local officials in the development of
regulatory policies that have federalism
implications.’’ ‘‘Policies that have
federalism implications’’ is defined in
the EO to include regulations that 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.’’
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This proposed rule does not have
Federalism implications. It will not
have substantial direct effects on the
States, on the relationship between the
national government and the States, or
on the distribution of power and
responsibilities among the various
levels of government, as specified in EO
13132. These effects would not occur
from the final rule itself because it is the
provisions of the CAA that require EPA,
after a State has failed to submit a State
Plan or a complete State Plan, to make
a finding to that effect and then
promulgate a Federal Plan. Although
EPA would be exercising discretion to
promulgate the Federal Plan at an early
date, EPA would rescind the Federal
Plan for each State that submits a State
Plan that EPA approves. Moreover, as
emphasized throughout the preamble,
States are not required to adopt the
Federal Plan provisions, or any
particular portion thereof, in order for
EPA to approve their State Plans. Thus,
EO 13132 does not apply to this
proposed rule.
Even so, in the spirit of EO 13132, and
consistent with EPA policy to promote
communications between EPA and State
and local governments, EPA consulted
with State and local officials early in the
process of developing the proposed
regulation to permit them to have
meaningful and timely input into its
development. EPA is including a
number of provisions for States in the
proposed rule so as not to constrain
States’ abilities to complete approvable
State Plans, such as the ability to submit
State allocation methodologies, and
intends to withdraw the Federal Plan
upon approval of State Plans.
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
Executive Order 13175, entitled
‘‘Consultation and Coordination with
Indian Tribal Governments’’ (65 FR
67249, November 9, 2000), requires 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.’’ This proposal does not
have ‘‘Tribal implications’’ as specified
in EO 13175.
This proposal addresses pollution
composed of Hg and mercuric
compounds. The final CAMR required
annual Hg reductions for the power
sector in 50 States, the District of
Columbia, and in Indian country,
through a cap-and-trade system that
States and eligible Tribes have the
option of adopting. The CAA provides
for States and eligible Tribes to develop
plans to regulate emissions of air
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pollutants within their areas. The
regulations clarify the statutory
obligations of States and eligible Tribes
that develop plans to implement this
rule. The TAR (40 CFR 49.1–49.119)
gives eligible Tribes the opportunity to
develop and implement CAA programs,
but it leaves to the discretion of the
Tribe whether to develop these
programs and which programs, or
appropriate elements of a program, the
Tribe will adopt. As noted earlier, the
EPA will implement the emission
trading rule for coal-fired Utility Units
located in Indian country in accordance
with the TAR unless the relevant Tribe
for the land on which a particular coalfired Utility Unit is located seeks and
obtains TAS status and submits a TIP to
implement the allocated Hg emissions
budget. Tribes which choose to do so
will be responsible for submitting a TIP
analogous to the State Plans discussed
throughout this preamble, and, like
States, can choose to adopt the Model
Cap-and-Trade Rule described
elsewhere in this action.
This proposal does not have Tribal
implications as defined by EO 13175. It
does not have a substantial direct effect
on one or more Indian Tribes, because
no Tribe has implemented a Federally
enforceable air quality management
program under the CAA at this time.
Furthermore, this proposal does not
affect the relationship or distribution of
power and responsibilities between the
Federal government and Indian Tribes.
The CAA and the TAR establish the
relationship of the Federal government
and Tribes in developing plans to attain
the national ambient air quality
standards (NAAQS), and this proposal
does nothing to modify that
relationship. EPA has complied with the
provisions of EO 13175.
EPA notes that in the event a Tribe
does implement a TIP in the future, this
proposal could have implications for
that Tribe, but it would not impose
substantial direct costs upon the Tribe,
nor preempt Tribal law. EPA has
estimated that the total annual private
costs for the rule for Hg as implemented
by State, local, and eligible Tribal
governments (or EPA in the absence of
any Tribe seeking TAS status) is
approximately $160 million in 2010,
$100 million in 2015, and $750 million
in 2020 (1999$). There are currently
three coal-fired Utility Units located in
Indian country that will be affected by
this rule and the percentage of Indian
country that will be impacted is very
small. For eligible Tribes that choose to
regulate sources in Indian country, the
costs would be attributed to inspecting
regulated facilities and enforcing
adopted regulations.
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EPA consulted with Tribal officials in
developing the final CAMR and this
proposal. The EPA encouraged Tribal
input at an early stage. A Tribal
representative from the Navajo Nation
was a member of the official workgroup
and was provided with all workgroup
materials. EPA has provided two
briefings for Tribal representatives and
the newly formed National Tribal Air
Association (NTAA), and other national
Tribal forums such as the National
Tribal Environmental Council (NTEC)
and the National Tribal Forum during
the period prior to issuance of the
CAMR NPR. Another briefing for Tribal
representatives, NTAA, and NTEC was
provided post-proposal to provide
opportunity for additional input. In
addition, Tribal representatives
participated in EPA’s regional
implementation workshops for CAMR
in the summer of 2005.
EPA conducted additional informal
outreach for Tribes during the CAMR
reconsideration process. First, EPA
prepared an update on the
reconsideration and CAMR Federal Plan
development for the EPA Tribal
Newsletter in January 2006. Second,
EPA, through both Headquarters and
Regional Offices, has worked to address
Tribes’ specific questions or concerns
regarding implementation of CAMR.
Finally, EPA has met with
representatives from one Tribe that is
concerned with the implications of
CAMR for the development of new
tribal electricity generation.
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
Executive Order 13045, ‘‘Protection of
Children from Environmental Health
and Safety Risks’’ (62 FR 19885, April
23, 1997) applies to any rule that (1) Is
determined to be ‘‘economically
significant’’ as defined under EO 12866,
and (2) concerns an environmental
health or safety risk that EPA has reason
to believe may have a disproportionate
effect on children. If the regulatory
action meets both criteria, Section 5–
501 of the EO directs the Agency to
evaluate the environmental health or
safety effects of the planned rule on
children, and explain why the planned
regulation is preferable to other
potentially effective and reasonably
feasible alternatives considered by the
Agency.
We believe that the environmental
health or safety risk addressed by this
action may have a disproportionate
effect on children. Accordingly, we have
evaluated the environmental health or
safety effects of this rule on children.
The results of this evaluation are
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discussed in the final CAMR and in the
‘‘Regulatory Impact Analysis for the
Final Clean Air Mercury Rule.’’ EPA
concluded that CAMR will further
improve air quality and will further
improve children’s health.
H. Executive Order 13211: Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use
Executive Order 13211 (66 FR 28355,
May 22, 2001) provides that agencies
shall prepare and submit to the
Administrator of the Office of
Regulatory Affairs, OMB, a Statement of
Energy Effects for certain actions
identified as ‘‘significant energy
actions.’’ Section 4(b) of EO 13211
defines ‘‘significant energy actions’’ as
‘‘any action by an agency (normally
published in the Federal Register) that
promulgates or is expected to lead to the
promulgation of a final rule or
regulation, including notices of inquiry,
advance notices of final rulemaking, and
notices of final rulemaking: (1)(i) That is
a significant regulatory action under EO
12866 or any successor order, and (ii) is
likely to have a significant adverse effect
on the supply, distribution, or use of
energy; or (2) that is designated by the
Administrator of the Office of
Information and Regulatory Affairs as a
‘‘significant energy action.’’ Although
this proposal is a significant regulatory
action under EO 12866, this rule likely
will not have a significant adverse effect
on the supply, distribution, or use of
energy. EPA concluded that the impact
of the final CAMR is not significant
because the final rule did not have a
greater than 1 percent impact on the
cost of electricity production and
because it does not result in the
retirement of greater than 500 MW of
coal-fired generation. EPA’s analysis of
the energy impacts of the final CAMR
can be found in the ‘‘Regulatory Impact
Analysis for the Final Clean Air
Mercury Rule.’’
I. National Technology Transfer and
Advancement Act
As noted in the CAMR final rule,
section 12(d) of the National
Technology Transfer and Advancement
Act (NTTAA) of 1995 (Pub. L. 104–113;
15 U.S.C. 272 note) directs EPA to use
voluntary consensus standards in their
regulatory and procurement activities
unless to do so would be inconsistent
with applicable law or otherwise
impracticable. Voluntary consensus
standards are technical standards (e.g.,
material specifications, test methods,
sampling procedures, business
practices) developed or adopted by one
or more voluntary consensus bodies.
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The NTTAA requires EPA to provide
Congress, through OMB, with
explanations when EPA decides not to
use available and applicable voluntary
consensus standards.
During the development of the final
CAMR, EPA searched for voluntary
consensus standards that might be
applicable. The search identified three
voluntary consensus standards that
were considered practical alternatives to
the specified EPA test methods. An
assessment of these and other voluntary
consensus standards is presented in the
preamble to the final CAMR (70 FR
28647; May 18, 2005). This proposed
action does not propose the use of any
additional technical standards beyond
those cited in the final CAMR.
Therefore, EPA is not considering the
use of any additional voluntary
consensus standards for this action.
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
Executive Order 12898, ‘‘Federal
Actions to Address Environmental
Justice in Minority Populations and
Low-Income Populations,’’ requires
Federal agencies to consider the impact
of programs, policies, and activities on
minority populations and low-income
populations. According to EPA
guidance,7 agencies are to assess
whether minority or low-income
populations face risks or a rate of
exposure to hazards that are significant
and that ‘‘appreciably exceed or is likely
to appreciably exceed the risk or rate to
the general population or to the
appropriate comparison group.’’ (EPA,
1998)
In accordance with EO 12898, the
Agency has considered whether this
proposal may have disproportionate
negative impacts on minority or low
income populations. The Agency
expects this proposal to lead to
beneficial reductions in air pollution
and exposures generally with a small
negative impact through increased
utility bills. The increase in the price for
electric power is estimated to be 0.2
percent of retail electricity prices when
it is shared among all members of
society equally. The price increase is
not considered to be a disproportionate
impact on minority populations and
low-income populations. For this
reason, negative impacts to these subpopulations that appreciably exceed
7 U.S. Environmental Protection Agency, 1998.
Guidance for Incorporating Environmental Justice
Concerns in EPA’s NEPA Compliance Analyses.
Office of Federal Activities, Washington, DC, April
1998.
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similar impacts to the general
population are not expected.
There will be beneficial outcomes to
these populations as the result of this
action. In the absence of CAMR, there
are health effects that are likely to affect
certain populations in the U.S.,
including subsistence anglers, Native
Americans, and Asian Americans. These
populations may include low income
and minority populations who are
disproportionately impacted by Hg
exposures due to their economic,
cultural, and religious activities that
lead to higher levels of consumption of
fish than the general populations.
CAMR is expected to reduce Hg
exposures among these populations.
EPA’s analysis of these impacts is found
in the ‘‘Regulatory Impact Analysis for
the Final Clean Air Mercury Rule.’’
List of Subjects
40 CFR Part 60
Environmental protection,
Administrative practice and procedure,
Air pollution control, Coal, Electric
power plants, Intergovernmental
relations, Metals, Natural gas, Nitrogen
dioxide, Particulate matter, Reporting
and recordkeeping requirements, Sulfur
oxides.
40 CFR Part 62
Environmental protection, Air
pollution control, Hazardous
substances, Reporting and
recordkeeping requirements.
40 CFR Part 72
Acid rain, Administrative practice
and procedure, Air pollution control,
Electric utilities, Intergovernmental
relations, Nitrogen oxides, Reporting
and recordkeeping requirements, Sulfur
oxides.
40 CFR Part 78
Acid rain, Administrative practice
and procedure, Air pollution control,
Electric utilities, Nitrogen oxides,
Reporting and recordkeeping
requirements, Sulfur oxides.
*
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For the reasons set forth in the
preamble, parts 60, 62, 72, and 78 of
chapter 1 of title 40 of the Code of
Federal Regulations are proposed to be
amended as follows:
PART 60—[AMENDED]
1. The authority citation for part 60
continues to read as follows:
Authority: 42 U.S.C. 7401, 7403, 7426, and
7601.
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[Amended]
2. Section 60.17 is amended, in
paragraph (a)(14) by revising the words
‘‘and 60.4102’’ to read ‘‘, 60.4120, and
62.15902’’.
3. Section 60.24 is amended as
follows:
a. In paragraph (h)(8) in the definition
of ‘‘Boiler’’, by revising the words
‘‘fossil-or other fuel-fired’’ to read
‘‘fossil- or other-fuel-fired’’;
b. In paragraph (h)(8) in the definition
of ‘‘Cogeneration unit’’, by revising in
paragraph (2) the words ‘‘after which’’
to read ‘‘after the calendar year in
which’’;
c. In paragraph (h)(8) in the definition
of ‘‘Combustion turbine’’, by revising in
paragraph (2) the words ‘‘heat recovery
steam generator’’ to read ‘‘duct burner,
heat recovery steam generator,’’;
d. In paragraph (h)(8), by removing
the definition of ‘‘Heat input’’;
e. In paragraph (h)(8), by revising the
definition of ‘‘Maximum design heat
input’’;
f. In paragraph (h)(8) in the definition
of ‘‘Nameplate capacity’’, by revising the
words ‘‘derates) as specified’’ to read
‘‘deratings) as of such installation as
specified’’ and by revising the words
‘‘derates), such increased maximum
amount as specified’’ to read
‘‘deratings), such increased maximum
amount as of such completion as
specified’’;
g. In paragraph (h)(8) in the definition
of ‘‘Sequential use of energy’’, by
revising in paragraph (2) the word
‘‘seful’’ to read ‘‘useful’’;
h. In paragraph (h)(8) in the definition
of ‘‘Useful thermal energy’’, by revising
in paragraph (2) the words ‘‘heat’’ to
read ‘‘heating’’; and
i. In paragraph (h)(8), by adding new
definitions of ‘‘Municipal waste’’ and
‘‘Solid waste incineration unit’’;
j. By adding a new paragraph (h)(9) to
read as follows:
§ 60.24 Emission standards and
compliance schedules.
Dated: December 7, 2006.
Stephen L. Johnson,
Administrator.
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§ 60.17
*
*
*
*
(h) * * *
(8) * * *
Maximum design heat input means
the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of
combusting on a steady-state basis as of
the initial installation of the unit as
specified by the manufacturer of the
unit.
*
*
*
*
*
Municipal waste means ‘‘municipal
waste’’ as defined in section 129(g)(5) of
the Clean Air Act.
*
*
*
*
*
Solid waste incineration unit means a
stationary, coal-fired boiler or
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stationary, coal-fired combustion
turbine that is a ‘‘solid waste
incineration unit’’ as defined in section
129(g)(1) of the Clean Air Act.
*
*
*
*
*
(9) Notwithstanding any other
provision of this paragraph, a State may
adopt, and submit by May 30, 2007, a
State Hg allowance allocation
methodology replacing the provisions in
§§ 62.15941 and 62.15942 of this
chapter under the Federal Hg Budget
Trading Program under subpart HHHH
of this part with:
(i) Allocation provisions substantively
identical to §§ 62.15941 and 62.15942 of
this chapter, under which the
permitting authority makes the
allocations; or
(ii) Any methodology for allocating
Hg allowances to individual sources
under which the permitting authority
makes the allocations, provided that:
(A) The State’s methodology must not
allow the permitting authority to
allocate Hg allowances for a year in
excess of the amount in the State’s
trading budget for such year.
(B) The State’s methodology must
require that, for EGUs commencing
operation before January 1, 2001, the
permitting authority will determine, and
notify the Administrator of, each unit’s
allocation of Hg allowances by October
31, 2007 for 2010, 2011, and 2012 and
by October 31, 2009 and October 31 of
each year thereafter for the 4th year after
the year of the notification deadline.
(C) The State’s methodology must
require that, for EGUs commencing
operation on or after January 1, 2001,
the permitting authority will determine,
and notify the Administrator of, each
unit’s allocation of Hg allowances by
October 31 of the year for which the Hg
allowances are allocated.
4. Section 60.4102 is amended as
follows:
a. By revising the definition of
‘‘Allocate or allocation’’;
b. By revising the definition of
‘‘Allowance transfer deadline’’;
c. In the definition of ‘‘Alternate Hg
designated representative’’, by revising
the words ‘‘in accordance with
§§ 60.4110 through 60.4114,’’ to read ‘‘,
in accordance with §§ 60.4110 through
60.4115,’’ and by adding four sentences
at the end of the definition;
d. In the definition of ‘‘Automated
data acquisition and handling system or
DAHS’’, by revising the words ‘‘under
§§ 60.4170 through 60.4176’’ to read
‘‘under §§ 60.4170 through 60.4175’’
and by revising the words ‘‘required
§§ 60.4170 through 60.4176’’ to read
‘‘required by §§ 60.4170 through
60.4175’’.
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e. In the definition of ‘‘Boiler’’, by
revising the words ‘‘fossil- or other-fuelfired’’ to read ‘‘fossil- or other-fuelfired’’;
f. By revising the definition of ‘‘CAIR
NOX Annual Trading Program’’;
g. By revising the definition of ‘‘CAIR
NOX Ozone Season Trading Program’’;
h. By revising the definition of ‘‘CAIR
SO2 Trading Program’’;
i. In the definition of ‘‘Cogeneration
unit’’, by revising in paragraph (2) the
words ‘‘after which’’ to read ‘‘after the
calendar year in which’’;
j. In the definition of ‘‘Combustion
turbine’’, by revising in paragraph (2)
the words ‘‘heat recovery steam
generator’’ to read ‘‘duct burner, heat
recovery steam generator,’’;
k. By revising the definition of
‘‘Commence commercial operation’’;
l. By revising the definition of
‘‘Commence operation’’;
m. In the definition of ‘‘Continuous
emission monitoring system or CEMS’’,
in the introductory text by revising the
word ‘‘CEMS’’ to read ‘‘continuous
emission monitoring systems’’ and by
revising the words ‘‘§§ 60.4170 through
60.4176’’ to read ‘‘§§ 60.4170 through
60.4175’’ whenever they appear and in
paragraphs (1) and (2) by revising the
words ‘‘in units of’’ to read ‘‘in’’.
n. In the definition of ‘‘Control
period’’, by revising the words ‘‘January
1 of a calendar year and’’ to read
‘‘January 1 of a calendar year, except as
provided in § 60.4106(c)(2), and’’;
o. In the definition of ‘‘Emissions’’, by
revising the words ‘‘§§ 60.4170 through
60.4176’’ to read ‘‘§§ 60.4170 through
60.4175’’;
p. In the definition of ‘‘Heat input’’,
by revising the words ‘‘§§ 60.4170
through 60.4176’’ to read ‘‘§§ 60.4170
through 60.4175’’;
q. By revising the definition of ‘‘Hg
allowance’’;
r. In the definition of ‘‘Hg allowance
deduction or deduct CAIR NOX
allowances’’, by adding, after the words
‘‘compliance account’’, the words ‘‘,
e.g.,’’, by removing the words
‘‘§§ 60.4150 through 60.4157 and’’, and
by revising the words ‘‘§§ 60.4170
through 60.4176’’ to read ‘‘§§ 60.4170
through 60.4175’’;
s. In the definition of ‘‘Hg authorized
account representative’’, by revising the
words ‘‘§ 60.4152’’ to read ‘‘§§ 60.4110
through 60.4115 and §§ 60.4150 through
60.4157’’;
t. In the definition of ‘‘Hg Budget
emissions limitation’’, by revising the
words ‘‘in ounces’’ to read ‘‘, in ounces
of Hg emissions in a control period,’’
and revising the words ‘‘for a control
period’’ to read ‘‘for the control period’’;
u. By revising the definition of ‘‘Hg
Budget Trading Program’’;
VerDate Aug<31>2005
17:38 Dec 21, 2006
Jkt 211001
v. In the definition of ‘‘Hg designated
representative’’, by revising the words
‘‘§§ 60.4110 through 60.4114’’ to read
‘‘§§ 60.4110 through 60.4115’’ and by
adding four sentences at the end of the
definition;
w. By revising the definition of
‘‘Maximum design heat input’’;
x. In the definition of ‘‘Monitoring
system’’, by revising the words
‘‘§§ 60.4170 through 60.4176’’ to read
‘‘§§ 60.4170 through 60.4175’’;
y. In the definition of Nameplate
capacity’’, by revising the words ‘‘other
deratings) as specified’’ to read ‘‘other
deratings) as of such installation as
specified’’ and by revising the words
‘‘maximum amount as specified’’ to read
‘‘maximum amount as of such
completion as specified;
z. In the definition of ‘‘Ounce’’, by
revising the words ‘‘§§ 60.4170 through
60.4176’’ to read ‘‘§§ 60.4170 through
60.4175’’;
aa. In the definition of ‘‘Permitting
authority’’, by removing the words ‘‘in
accordance with §§ 60.4120 through
60.4124’’;
bb. In the definition of ‘‘Receive or
receipt’’, by revising the words
‘‘correspondence log’’ to read ‘‘log’’;
cc. In the definition of ‘‘Source’’, by
revising the word ‘‘CAA’’ to read ‘‘Clean
Air Act’’;
dd. In the definition of ‘‘Title V
operating permit’’, by revising the word
‘‘CAA’’ to read ‘‘Clean Air Act’’;
ee. In the definition of ‘‘Title V
operating permit regulations’’, by
revising the word ‘‘CAA’’ to read ‘‘Clean
Air Act’’;
ff. In the definition of ‘‘Useful thermal
energy’’, by revising in paragraph (2) the
words ‘‘heat application’’ to read
‘‘heating application’’; and
gg. Adding new definitions of ‘‘CAIR
NOX Ozone Season source’’, ‘‘CAIR NOX
source’’, ‘‘CAIR SO2 source’’,
‘‘Municipal waste’’, ‘‘Replacement,
replace, or replaced’’, and ‘‘Solid waste
incineration unit’’:
§ 60.4102
Definitions.
*
*
*
*
*
Allocate or allocation means, with
regard to Hg allowances, the
determination by a permitting authority
or the Administrator of the amount of
such Hg allowances to be initially
credited to a Hg Budget unit, a new unit
set-aside, or other entity.
*
*
*
*
*
Allowance transfer deadline means,
for a control period, midnight of March
1 (if it is a business day), or midnight
of the first business day thereafter (if
March 1 is not a business day),
immediately following the control
period and is the deadline by which a
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Hg allowance transfer must be
submitted for recordation in a Hg
Budget source’s compliance account in
order to be used to meet the source’s Hg
Budget emissions limitation for such
control period in accordance with
§ 60.4154.
*
*
*
*
*
Alternate Hg designated
representative means * * * If the Hg
Budget source is also a CAIR NOX
source, then this natural person shall be
the same person as the alternate CAIR
designated representative under the
CAIR NOX Annual Trading Program. If
the Hg Budget source is also a CAIR SO2
source, then this natural person shall be
the same person as the alternate CAIR
designated representative under the
CAIR SO2 Trading Program. If the Hg
Budget source is also a CAIR NOX Ozone
Season source, then this natural person
shall be the same person as the alternate
CAIR designated representative under
the CAIR NOX Ozone Season Trading
Program. If the Hg Budget source is also
subject to the Acid Rain Program, then
this natural person shall be the same
person as the alternate designated
representative under the Acid Rain
Program.
*
*
*
*
*
CAIR NOX Annual Trading Program
means a multi-state nitrogen oxides air
pollution control and emission
reduction program approved and
administered by the Administrator in
accordance with subparts AA through II
of part 96 of this chapter and
§ 51.123(o)(1) or (2) of this chapter or
established by the Administrator in
accordance with subparts AA through II
of part 97 of this chapter and
§§ 51.123(p) and 52.35 of this chapter,
as a means of mitigating interstate
transport of fine particulates and
nitrogen oxides.
CAIR NOX Ozone Season source
means a source that is subject to the
CAIR NOX Ozone Season Trading
Program.
CAIR NOX Ozone Season Trading
Program means a multi-state nitrogen
oxides air pollution control and
emission reduction program approved
and administered by the Administrator
in accordance with subparts AAAA
through IIII of part 96 of this chapter
and § 51.123(aa)(1) or (2) (and (bb)(1)),
(bb)(2), or (dd) of this chapter or
established by the Administrator in
accordance with subparts AAAA
through IIII of part 97 of this chapter
and §§ 51.123(ee) and 52.35 of this
chapter, as a means of mitigating
interstate transport of ozone and
nitrogen oxides.
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CAIR NOX source means a source that
is subject to the CAIR NOX Annual
Trading Program.
CAIR SO2 source means a source that
is subject to the CAIR SO2 Trading
Program.
CAIR SO2 Trading Program means a
multi-state sulfur dioxide air pollution
control and emission reduction program
approved and administered by the
Administrator in accordance with
subparts AAA through III of part 96 of
this chapter and § 51.124(o)(1) or (2) of
this chapter or established by the
Administrator in accordance with
subparts AAA through III of part 97 of
this chapter and §§ 51.124(r) and 52.36
of this chapter, as a means of mitigating
interstate transport of fine particulates
and sulfur dioxide.
*
*
*
*
*
Commence commercial operation
means, with regard to a unit:
(1) To have begun to produce steam,
gas, or other heated medium used to
generate electricity for sale or use,
including test generation, except as
provided in § 60.4105.
(i) For a unit that is a Hg Budget unit
under § 60.4104 on the later of
November 15, 1990 or the date the unit
commences commercial operation as
defined in paragraph (1) of this
definition and that subsequently
undergoes a physical change (other than
replacement of the unit by a unit at the
same source), such date shall remain the
date of commencement of commercial
operation of the unit, which shall
continue to be treated as the same unit.
(ii) For a unit that is a Hg Budget unit
under § 60.4104 on the later of
November 15, 1990 or the date the unit
commences commercial operation as
defined in paragraph (1) of this
definition and that is subsequently
replaced by a unit at the same source
(e.g., repowered), such date shall remain
the replaced unit’s date of
commencement of commercial
operation, and the replacement unit
shall be treated as a separate unit with
a separate date for commencement of
commercial operation as defined in
paragraph (1) or (2) of this definition as
appropriate.
(2) Notwithstanding paragraph (1) of
this definition and except as provided
in § 60.4105, for a unit that is not a Hg
Budget unit under § 60.4104 on the later
of November 15, 1990 or the date the
unit commences commercial operation
as defined in paragraph (1) of this
definition, the unit’s date for
commencement of commercial
operation shall be the date on which the
unit becomes a Hg Budget unit under
§ 60.4104.
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(i) For a unit with a date for
commencement of commercial
operation as defined in paragraph (2) of
this definition and that subsequently
undergoes a physical change (other than
replacement of the unit by a unit at the
same source), such date shall remain the
unit’s date of commencement of
commercial operation of the unit, which
shall continue to be treated as the same
unit.
(ii) For a unit with a date for
commencement of commercial
operation as defined in paragraph (2) of
this definition and that is subsequently
replaced by a unit at the same source
(e.g., repowered), such date shall remain
the replaced unit’s date of
commencement of commercial
operation, and the replacement unit
shall be treated as a separate unit with
a separate date for commencement of
commercial operation as defined in
paragraph (1) or (2) of this definition as
appropriate.
Commence operation means:
(1) To have begun any mechanical,
chemical, or electronic process,
including, with regard to a unit, start-up
of a unit’s combustion chamber.
(2) For a unit that undergoes a
physical change (other than replacement
of the unit by a unit at the same source)
after the date the unit commences
operation as defined in paragraph (1) of
this definition, such date shall remain
the date of commencement of operation
of the unit, which shall continue to be
treated as the same unit.
(3) For a unit that is replaced by a unit
at the same source (e.g., repowered)
after the date the unit commences
operation as defined in paragraph (1) of
this definition, such date shall remain
the replaced unit’s date of
commencement of operation, and the
replacement unit shall be treated as a
separate unit with a separate date for
commencement of operation as defined
in paragraph (1), (2), or (3) of this
definition, as appropriate.
*
*
*
*
*
Hg allowance means a limited
authorization issued by a permitting
authority or the Administrator under
provisions of a State plan that are
approved under § 52.24(h)(6) of this
chapter, or under §§ 62.15940 through
62.15943 of this chapter, to emit one
ounce of mercury during a control
period of the specified calendar year for
which the authorization is allocated or
of any calendar year thereafter under the
Hg Budget Trading Program. An
authorization to emit mercury that is not
issued under provisions of a State plan
that are approved under § 52.24(h)(6) of
this chapter or under §§ 62.15940
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77123
through 62.15943 of this chapter shall
not be a ‘‘Hg allowance.’’
*
*
*
*
*
Hg Budget Trading Program means a
multi-state Hg air pollution control and
emission reduction program approved
and administered by the Administrator
in accordance with this subpart and
§ 60.24(h)(6) or established by the
Administrator in accordance with
subpart LLL of part 62 of this chapter,
§ 60.24(h)(9), and § 62.13(f) of this
chapter, as a means of reducing national
Hg emissions.
*
*
*
*
*
Hg designated representative means
* * * If the Hg Budget source is also a
CAIR NOX source, then this natural
person shall be the same person as the
CAIR designated representative under
the CAIR NOX Annual Trading Program.
If the Hg Budget source is also a CAIR
SO2 source, then this natural person
shall be the same person as the CAIR
designated representative under the
CAIR SO2 Trading Program. If the Hg
Budget source is also a CAIR NOX
Ozone Season source, then this natural
person shall be the same person as the
CAIR designated representative under
the CAIR NOX Ozone Season Trading
Program. If the Hg Budget source is also
subject to the Acid Rain Program, then
this natural person shall be the same
person as the designated representative
under the Acid Rain Program.
*
*
*
*
*
Maximum design heat input means
the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of
combusting on a steady-state basis as of
the initial installation of the unit as
specified by the manufacturer of the
unit.
*
*
*
*
*
Municipal waste means ‘‘municipal
waste’’ as defined in section 129(g)(5) of
the Clean Air Act.
*
*
*
*
*
Replacement, replace, or replaced
means, with regard to a unit, the
demolishing of a unit, or the permanent
shutdown and permanent disabling of a
unit, and the construction of another
unit (the replacement unit) to be used
instead of the demolished or shutdown
unit (the replaced unit).
*
*
*
*
*
Solid waste incineration unit means a
stationary, coal-fired boiler or
stationary, coal-fired combustion
turbine that is a ‘‘solid waste
incineration unit’’ as defined in section
129(g)(1) of the Clean Air Act.
*
*
*
*
*
5. Section 60.4103 is revised to read
as follows:
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§ 60.4103 Measurements, abbreviations,
and acronyms.
Measurements, abbreviations, and
acronyms used in this subpart are
defined as follows:
Btu—British thermal unit.
CO2—carbon dioxide.
H2O—water.
Hg—mercury.
hr—hour.
kW—kilowatt electrical.
kWh—kilowatt hour.
lb—pound.
MMBtu—million Btu.
MWe—megawatt electrical.
MWh—megawatt hour.
NOX—nitrogen oxides.
O2—oxygen.
ppm—parts per million.
scfh—standard cubic feet per hour.
SO2—sulfur dioxide.
yr—year.
§ 60.4104
[Amended]
6. Section 60.4104 is amended, in
paragraph (a)(1) by removing the words
‘‘and subparts BB through HH of this
part’’.
§ 60.4105
[Amended]
7. Section 60.4105 is amended as
follows:
a. In paragraph (a)(1), by revising the
words ‘‘through (8), § 60.4107, and
§§ 60.4150’’ to read ‘‘through (7),
§ 60.4107, § 60.4108, §§ 60.4110 through
60.4115, and §§ 60.4140’’;
b. In paragraph (b)(3), by revising the
words ‘‘shall retain at the source’’ to
read ‘‘shall retain, at the source’’ and
c. In paragraph (b)(7), by revising the
words ‘‘§§ 60.4170 through 60.4176’’ to
read ‘‘§§ 60.4170 through 60.4175’’ and
by revising the words ‘‘commences
operation and commercial operation’’ to
read ‘‘commences commercial
operation’’.
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§ 60.4106
[Amended]
8. Section 60.4106 is amended as
follows:
a. In paragraph (a)(1)(i), by revising
the words ‘‘in § 60.4121(a) and (b)’’ to
read ‘‘in § 60.4121’’;
b. In paragraph (a)(3), by revising the
words ‘‘is not required’’ to read ‘‘is not
otherwise required’’ whenever they
appear;
c. In paragraphs (b)(1), (b)(2), and
(c)(1), by revising the words ‘‘§§ 60.4170
through 60.4176’’ to read ‘‘§§ 60.4170
through 60.4175’’;
d. In paragraph (c)(2), by revising the
words ‘‘under paragraph (c)(1) of this
section’’ to read ‘‘under paragraph (c)(1)
of this section for the control period’’
and by revising the words ‘‘under
§ 60.4170(b)(1) or (2)’’ to read ‘‘under
§ 60.4170(b)(1) or (2) and for each
control period thereafter’’;
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e. In paragraph (c)(4), by revising the
words ‘‘§§ 60.4160’’ to read
‘‘§§ 60.4150’’;
f. In paragraph (c)(7), by revising the
words ‘‘§§ 60.4150’’ to read
‘‘§§ 60.4140’’, by revising the words
‘‘from a Hg Budget unit’s compliance
account’’ to read ‘‘from a Hg Budget
source’s compliance account’’, and by
removing the words ‘‘that includes the
Hg Budget unit’’;
g. In paragraph (d)(1), by removing the
paragraph designation ‘‘(1)’’ and by
redesignating paragraph (d)(1)(i) as
paragraph (d)(1);
h. By removing paragraph (d)(2) and
by redesignating paragraph (d)(1)(ii) as
paragraph (d)(2);
i. In paragraphs (e)(1)(ii) and (e)(2), by
revising the words ‘‘§§ 60.4170 through
60.4176’’ to read ‘‘§§ 60.4170 through
60.4175’’ whenever they appear; and
j. In paragraph (g), by revising the
word ‘‘CAA’’ to read ‘‘Clean Air Act’’.
§ 60.4108
[Amended]
9. Section 60.4108 is amended by
revising the words ‘‘shall be the
procedures’’ to read ‘‘are’’ and removing
the second sentence.
§ 60.4110
[Amended]
10. Section 60.4110 is amended, in
paragraph (e)(2), by revising the words
‘‘owner’’ to read ‘‘owners’’.
§ 60.4111
[Amended]
11. Section 60.4111 is amended, in
paragraph (c), by revising the words
‘‘60.4151, and 60.4174,’’ to read
‘‘60.4115, and 60.4151,’’.
§ 60.4112
[Amended]
12. Section 60.4112 is amended, in
paragraph (c)(1), by revising the words
‘‘a new owner’’ to read ‘‘an owner’’, by
revising the words ‘‘such new owner’’ to
read ‘‘such owner’’, and by revising the
words ‘‘the new owner’’ to read ‘‘the
owner’’.
§ 60.4113
[Amended]
13. Section 60.4113 is amended as
follows:
a. In paragraph (a)(1), by revising the
words ‘‘is submitted.’’ to read ‘‘is
submitted, including identification and
nameplate capacity of each generator
served by each such unit’’; and
b. In paragraph (a)(4)(iv), by revising
the words ‘‘where a customer’’ to read
‘‘where a utility or industrial customer’’.
14. Add a new § 60.4115 to read as
follows:
§ 60.4115 Delegation by Hg designated
representative and alternate Hg designated
representative.
(a) A Hg designated representative
may delegate, to one or more natural
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persons, his or her authority to make an
electronic submission to the
Administrator provided for or required
under this subpart.
(b) An alternate Hg designated
representative may delegate, to one or
more natural persons, his or her
authority to make an electronic
submission to the Administrator
provided for or required under this
subpart.
(c) In order to delegate authority to
make an electronic submission to the
Administrator in accordance with
paragraph (a) or (b) of this section, the
Hg designated representative or
alternate Hg designated representative,
as appropriate, must submit to the
Administrator a notice of delegation, in
a format prescribed by the
Administrator, that includes the
following elements:
(1) The name, address, e-mail address,
telephone number, and facsimile
transmission number (if any) of such Hg
designated representative or alternate
Hg designated representative;
(2) The name, address, e-mail address,
telephone number, and facsimile
transmission number (if any) of each
such natural person (referred to as an
‘‘agent’’);
(3) For each such natural person, a list
of the type or types of electronic
submissions under paragraph (a) or (b)
of this section for which authority is
delegated to him or her; and
(4) The following certification
statements by such Hg designated
representative or alternate Hg
designated representative:
(i) ‘‘I agree that any electronic
submission to the Administrator that is
by an agent identified in this notice of
delegation and of a type listed for such
agent in this notice of delegation and
that is made when I am a Hg designated
representative or alternate Hg
designated representative, as
appropriate, and before this notice of
delegation is superseded by another
notice of delegation under 40 CFR
60.4115(d) shall be deemed to be an
electronic submission by me.’’
(ii) ‘‘Until this notice of delegation is
superseded by another notice of
delegation under 40 CFR 60.4115(d), I
agree to maintain an e-mail account and
to notify the Administrator immediately
of any change in my e-mail address,
unless all delegation of authority by me
under 40 CFR 60.4115 is terminated.’’
(d) A notice of delegation submitted
under paragraph (c) of this section shall
be effective, with regard to the Hg
designated representative or alternate
Hg designated representative identified
in such notice, upon receipt of such
notice by the Administrator and until
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receipt by the Administrator of a
superseding notice of delegation
submitted by such Hg designated
representative or alternate Hg
designated representative, as
appropriate. The superseding notice of
delegation may replace any previously
identified agent, add a new agent, or
eliminate entirely any delegation of
authority.
(e) Any electronic submission covered
by the certification in paragraph (c)(4)(i)
of this section and made in accordance
with a notice of delegation effective
under paragraph (d) of this section shall
be deemed to be an electronic
submission by the Hg designated
representative or alternative Hg
designated representative submitting
such notice of delegation.
§ 60.4120
[Amended]
15. Section 60.4120 is amended, in
paragraph (a), by revising the words
‘‘otherwise by this section and’’ to read
‘‘otherwise by paragraph (b) of this
section, § 60.4105, and’’.
§ 60.4121
[Amended]
16. Section 60.4121 is amended, in
paragraph (a), by revising the words
‘‘commences operation’’ to read
‘‘commences commercial operation’’.
§ 60.4123
[Amended]
17. Section 60.4123 is amended, in
paragraph (b), by revising the words
‘‘§§ 60.4150’’ to read ‘‘§§ 60.4140’’.
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§ 60.4141
[Amended]
18. Section 60.4141 is amended as
follows:
a. In paragraph (b)(1), by removing the
paragraph designation ‘‘(1)’’ and by
revising the words ‘‘October 31, 2008’’
to read ‘‘October 31, 2009’’;
b. By removing paragraph (b)(2);
c. In paragraph (c)(1), by removing the
paragraph designation ‘‘(1)’’; and
d. By removing paragraph (c)(2).
19. Section 60.4142 is amended as
follows:
a. By revising paragraph (c)
introductory text;
b. In paragraph (c)(2), by revising the
words ‘‘The Hg allowance allocation
request must be submitted on or before
July 1 of the first control period for
which Hg allowances are requested’’ to
read ‘‘A separate Hg allowance
allocation request for each control
period for which Hg allowances are
sought must be submitted on or before
May 1 of such control period’’;
c. In paragraph (c)(3), by revising the
words ‘‘control period immediately
before’’ to read ‘‘calendar year
immediately before’’;
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d. In paragraph (c)(4)(ii), by revising
the words ‘‘On or after July 1’’ to read
‘‘On or after May 1’’;
e. In paragraph (d), by revising the
words ‘‘for 2010 through 2014, and 97
percent for 2014’’ to read ‘‘for a control
period in 2010 through 2014, and 97
percent for a control period in 2015’’.
§ 60.4142
Hg allowance allocations.
*
*
*
*
*
(c) For each control period in 2009
and thereafter, the permitting authority
will allocate Hg allowances to Hg
Budget units in a State that are not
allocated Hg allowances under
paragraph (b) of this section because the
units do not yet have a baseline heat
input under paragraph (a) of this section
or because the units have a baseline heat
input but all Hg allowances available
under paragraph (b) of this section for
the control period are already allocated,
in accordance with the following
procedures:
*
*
*
*
*
20. Section 60.4151 is amended as
follows:
a. By revising paragraph (b)(2)
introductory text;
b. In paragraph (b)(3)(iii)(A), by
revising the words ‘‘a new person’’ to
read ‘‘a person’’, by revising the words
‘‘such new person’’ to read ‘‘such
person’’, and by revising the words ‘‘the
new person’’ to read ‘‘the person’’;
c. In paragraph (b)(3)(iii)(B), by
revising the words ‘‘addition of
persons’’ to read ‘‘addition of a new
person’’;
d. In paragraph (b)(4) introductory
text, by revising the word
‘‘representative’’ to read ‘‘representative
and alternate Hg authorized account
representative’’;
e. In paragraphs (b)(4)(ii) and (iii), by
revising the words ‘‘alternative Hg’’ to
read ‘‘alternate Hg’’ whenever they
appear; and
f. By adding a new paragraph (b)(5) to
read as follows:
§ 60.4151
Establishment of accounts.
*
*
*
*
*
(b) * * *
*
*
*
*
*
(2) Authorization of Hg authorized
account representative and alternate Hg
authorized account representative.
* * *
*
*
*
*
*
(5) Delegation by Hg authorized
account representative and alternate Hg
authorized account representative.
(i) A Hg authorized account
representative may delegate, to one or
more natural persons, his or her
authority to make an electronic
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77125
submission to the Administrator
provided for or required under this
section and §§ 60.4152 through 60.4162.
(ii) An alternate Hg authorized
account representative may delegate, to
one or more natural persons, his or her
authority to make an electronic
submission to the Administrator
provided for or required under this
section and §§ 60.4152 through 60.4162.
(iii) In order to delegate authority to
make an electronic submission to the
Administrator in accordance with
paragraph (b)(5)(i) or (ii) of this section,
the Hg authorized account
representative or alternate Hg
authorized account representative, as
appropriate, must submit to the
Administrator a notice of delegation, in
a format prescribed by the
Administrator, that includes the
following elements:
(A) The name, address, e-mail
address, telephone number, and
facsimile transmission number (if any)
of such Hg authorized account
representative or alternate Hg
authorized account representative;
(B) The name, address, e-mail
address, telephone number, and,
facsimile transmission number (if any)
of each such natural person (referred to
as an ‘‘agent’’);
(C) For each such natural person, a
list of the type or types of electronic
submissions under paragraph (b)(5)(i) or
(ii) of this section for which authority is
delegated to him or her;
(D) The following certification
statement by such Hg authorized
account representative or alternate Hg
authorized account representative: ‘‘I
agree that any electronic submission to
the Administrator that is by an agent
identified in this notice of delegation
and of a type listed for such agent in
this notice of delegation and that is
made when I am a Hg authorized
account representative or alternate Hg
authorized representative, as
appropriate, and before this notice of
delegation is superseded by another
notice of delegation under 40 CFR
60.4151(b)(5)(iv) shall be deemed to be
an electronic submission by me.’’; and
(E) The following certification
statement by such Hg authorized
account representative or alternate Hg
authorized account representative:
‘‘Until this notice of delegation is
superseded by another notice of
delegation under 40 CFR 60.4151
(b)(5)(iv), I agree to maintain an e-mail
account and to notify the Administrator
immediately of any change in my e-mail
address unless all delegation of
authority under 40 CFR 60.4151(b)(5) is
terminated.’’
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(iv) A notice of delegation submitted
under paragraph (b)(5)(iii) of this
section shall be effective, with regard to
the Hg authorized account
representative or alternate Hg
authorized account representative
identified in such notice, upon receipt
of such notice by the Administrator and
until receipt by the Administrator of a
superseding notice of delegation
submitted by such Hg authorized
account representative or alternate Hg
authorized account representative, as
appropriate. The superseding notice of
delegation may replace any previously
identified agent, add a new agent, or
eliminate entirely any delegation of
authority.
(v) Any electronic submission covered
by the certification in paragraph
(b)(5(iii)(D) of this section and made in
accordance with a notice of delegation
effective under paragraph (b)(5)(iv) of
this section shall be deemed to be an
electronic submission by the Hg
designated representative or alternate
Hg designated representative submitting
such notice of delegation.
*
*
*
*
*
21. Section 60.4153 is amended as
follows:
a. In paragraph (a), by revising the
words ‘‘By December 1, 2006,’’ to read
‘‘By December 1, 2007,’’ and by revising
the words ‘‘at a source’’ to read ‘‘at the
source’’;
b. In paragraph (b), by revising the
words ‘‘December 1, 2008’’ to read
‘‘December 1, 2009’’ and by removing
the words ‘‘or as determined by the
Administrator’’;
c. By revising paragraph (c); and
d. In paragraph (d), by removing the
words ‘‘or determined by the
Administrator’’.
§ 60.4153 Recordation of Hg allowance
allocations.
*
*
*
*
(c) By December 1, 2010 and
December 1 of each year thereafter, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source, as submitted
by the permitting authority in
accordance with § 60.4141(b), for the
control period in the sixth year after the
year of the applicable deadline for
recordation under this paragraph.
*
*
*
*
*
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*
§ 60.4154
[Amended]
22. Section 60.4154 is amended:
a. In paragraph (a)(1), by revising the
words ‘‘prior year;’’ to read ‘‘prior year;
and’’;
b. In paragraph (a)(2), by revising the
words ‘‘§§ 60.4160 through 60.4162 by
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the allowance transfer deadline for the
control period; and’’ to read ‘‘§§ 60.4160
and 60.4161 by the allowance transfer
deadline for the control period.’’;
c. By removing paragraph (a)(3);
d. In paragraph (b) introductory text,
by revising the words ‘‘§§ 60.4160
through 60.4162’’ to read ‘‘§ 60.4161’’;
e. In paragraph (b)(1), by revising the
words ‘‘§§ 60.4170 through 60.4176’’ to
read ‘‘§§ 60.4170 through 60.4175’’;
f. In paragraph (c)(2)(ii), by revising
the words ‘‘to any unit’’ to read ‘‘to any
entity’’;
g. In paragraph (d)(2), by revising the
word ‘‘violation’’ to read ‘‘violations’’;
h. In paragraph (e), by revising the
words ‘‘under paragraph (b) or (d)’’ to
read ‘‘under paragraphs (b) and (d)’’;
and
i. In paragraph (f)(2), by revising the
words ‘‘of this section.’’ to read ‘‘of this
section, and record such deductions and
transfers.’’
§ 60.4157
[Amended]
23. Section 60.4157 is amended in
paragraphs (a) and (b) by revising the
words ‘‘§ 60.4160 through 60.4162’’ to
read ‘‘§§ 60.4160 and 60.4161’’.
24. Section 60.4170 is amended as
follows:
a. In the introductory text and
paragraphs (a)(1) and (a)(2), by revising
the words ‘‘§§ 60.4170 through 60.4176’’
to read ‘‘§§ 60.4170 through 60.4175’’;
b. In paragraph (b) introductory text,
by revising the words ‘‘The owner’’ to
read ‘‘Except as provided in paragraph
(e) of this section, the owner’’;
c. In paragraph (c)(1), by removing the
paragraph designation ‘‘(1)’’ and by
revising the words ‘‘Except as provided
in paragraph (c)(2) of this section, the
owner’’ to read ‘‘The owner’’;
d. By removing paragraph (c)(2);
e. In paragraph (d)(1), by revising the
words ‘‘§§ 60.4171 through 60.4176’’ to
read ‘‘§§ 60.4171 through 60.4174’’;
f. In paragraph (d)(2), by revising the
words ‘‘§§ 60.4171 through 60.4176’’ to
read ‘‘§§ 60.4171 through 60.4175’’;
g. In paragraph (d)(3), by revising the
words ‘‘the atmosphere’’ to read ‘‘the
atmosphere or heat input’’ and by
revising the words ‘‘§§ 60.4171 through
60.4176’’ to read ‘‘§§ 60.4171 through
60.4175’’;
h. In paragraph (d)(4) introductory
text, by revising the words ‘‘this
subpart’’ to read ‘‘this section and
§§ 60.4171 through 60.4175’’
i. In paragraph (d)(4)(ii), by revising
the words ‘‘§§ 60.4171 through 60.4176’’
to read ‘‘§§ 60.4171 through 60.4175’’;
and
j. By adding a new paragraph (e) to
read as follows:
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§ 60.4170
General requirements.
*
*
*
*
*
(e) Long-term cold storage. The owner
or operator of a Hg Budget unit is
subject to the applicable provisions of
part 75 of this chapter concerning units
in long-term cold storage.
§ 60.4171
[Amended]
25. Section 60.4171 is amended as
follows:
a. In paragraph (c) introductory text,
by revising the words ‘‘(e.g.,’’ to read
‘‘(i.e.,’’;
b. In paragraph (c)(1), by revising the
words ‘‘each monitoring system under
§ 60.4170(a)(1)’’ to read ‘‘each
continuous monitoring system under
§ 60.4170(a)(1)’’;
c. In paragraph (c)(3) introductory
text, by revising the words ‘‘apply the
word ‘recertification’ instead of’’ to read
‘‘replace’’ and revise the words ‘‘and
apply the word ‘recertified’ instead of
the word ‘certified’ ’’ to read ‘‘with the
word ‘recertification’, replace the word
‘certified’ with the word ‘recertified’,’’;
d. In paragraph (c)(3)(v)(A), by
revising the words ‘‘§ 75.20(a)(4)(iii), or’’
to read ‘‘§ 75.20(a)(4)(iii) or’’;
e. In paragraph (c)(3)(v)(A)(1), by
revising the words ‘‘of this chapter,
and’’ to read ‘‘of this chapter.’’; and
f. In paragraph (e), by revising the
words ‘‘by the Administrator and, if
applicable, the permitting authority’’ to
read ‘‘by the Administrator’’.
§ 60.4173
[Amended]
26. Section 60.4173 is amended by
removing the words ‘‘, except that if the
unit is not subject to an Acid Rain
emissions limitation, the notification is
only required to be sent to the
permitting authority’’.
27. Section 60.4174 is amended as
follows:
a. By revising paragraph (a);
b. In paragraph (d)(3), by removing
the words ‘‘and § 60.4176’’; and
c. In paragraph (e)(1), by removing the
words ‘‘§ 60.4176,’’; and
d. Revising paragraph (e)(2).
§ 60.4174
Recordkeeping and reporting.
(a) General provisions. The Hg
designated representative shall comply
with all recordkeeping and reporting
requirements in this section, the
applicable recordkeeping and reporting
requirements of § 75.84 of this chapter,
and the requirements of § 60.4110(e)(1).
*
*
*
*
*
(e) * * *
(2) For a unit with add-on Hg
emission controls, a flue gas
desulfurization system, a selective
catalytic reduction system, or a compact
hybrid particulate collector system and
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for all hours where Hg data are
substituted in accordance with
§ 75.34(a)(1) of this chapter,
(i)(A) The Hg add-on emission
controls, flue gas desulfurization
system, selective catalytic reduction
system, or compact hybrid particulate
collector system were operating within
the range of parameters listed in the
quality assurance/quality control
program under appendix B to part 75 of
this chapter, or
(B) With regard to a flue gas
desulfurization system or a selective
catalytic reduction system, qualityassured SO2 emission data recorded in
accordance with part 75 of this chapter
document that the flue gas
desulfurization system was operating
properly or quality-assured NOX
emission data recorded in accordance
with part 75 of this chapter document
that the selective catalytic reduction
system was operating properly, as
applicable, and
(ii) The substitute data values do not
systematically underestimate Hg
emissions.
§ 60.4175
[Amended]
28. Section 60.4175 is amended by
revising the words ‘‘Hg unit’’ to read
‘‘Hg Budget unit’’ and by removing the
words ‘‘and § 60.4176’’ whenever they
appear.
§ 60.4176
[Removed]
29. Section 60.4176 is removed.
PART 62—[AMENDED]
30. The authority citation for part 62
continues to read as follows:
Authority: 42 U.S.C. 7401, et seq.
31. Section 62.13 is amended by
adding a new paragraph (f) to read as
follows:
§ 62.13
Federal plans.
*
*
*
*
(f) The substantive requirements of
the coal-fired electric steam generating
units mercury Federal plan are
contained in subpart LLL of this part.
These requirements include emission
limits, compliance schedules, testing,
monitoring, and reporting and
recordkeeping requirements.
32. Add a new subpart LLL to read as
follows:
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*
Subpart LLL—Emission Guidelines and
Compliance Times for Coal-Fired Electric
Steam Generating Units
Sec.
Hg Budget Trading Program General
Provisions
62.15901 Purpose.
62.15902 Definitions.
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62.15903 Measurements, abbreviations, and
acronyms.
62.15904 Applicability.
62.15905 Retired unit exemption.
62.15906 Standard requirements.
62.15907 Computation of time.
62.15908 Appeal procedures.
Hg Designated Representative for Hg Budget
Sources
62.15910 Authorization and responsibilities
of Hg designated representative.
62.15911 Alternate Hg designated
representative.
62.15912 Changing Hg designated
representative and alternate Hg
designated representative; changes in
owners and operators.
62.15913 Certificate of representation.
62.15914 Objections concerning Hg
designated representative.
62.15915 Delegation by Hg designated
representative and alternate Hg
designated representative.
Permits
62.15920 General Hg budget trading
program permit requirements.
62.15921 Submission of Hg budget permit
applications.
62.15922 Information requirements for Hg
budget permit applications.
62.15923 Hg budget permit contents and
term.
62.15924 Hg budget permit revisions.
62.15930 [Reserved]
Hg Allowance Allocations
62.15940 State trading budgets.
62.15941 Timing requirements for Hg
allowance allocations.
62.15942 Hg allowance allocations.
62.15943 Alternative of allocation of Hg
allowances by permitting authority.
Hg Allowance Tracking System
62.15950 [Reserved]
62.15951 Establishment of accounts.
62.15952 Responsibilities of Hg authorized
account representative.
62.15953 Recordation of Hg allowance
allocations.
62.15954 Compliance with Hg budget
emissions limitation.
62.15955 Banking.
62.15956 Account error.
62.15957 Closing of general accounts.
Hg Allowance Transfers
62.15960 Submission of Hg allowance
transfers.
62.15961 EPA recordation.
62.15962 Notification.
Monitoring and Reporting
62.15970 General requirements.
62.15971 Initial certification and
recertification procedures.
62.15972 Out of control periods.
62.15973 Notifications.
62.15974 Recordkeeping and reporting.
62.15975 Petitions.
Appendix A to Subpart Lll of Part 62—States
With Approved State Plans Concerning
Allocations
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Subpart LLL—Emission Guidelines
and Compliance Times for Coal-Fired
Electric Steam Generating Units
Hg Budget Trading Program General
Provisions
§ 62.15901
Purpose.
(a) This subpart sets forth the general
provisions and the designated
representative, permitting, allowance,
and monitoring provisions for the
federal mercury (Hg) Budget Trading
Program, under section 111 of the Clean
Air Act (CAA), as a means of reducing
national Hg emissions.
(b) Sources located in the following
States, for which the Administrator has
made a finding of failure to submit an
approvable State plan under § 60.24(h)
of this chapter and have not
subsequently submitted to the
Administrator an approved and
currently effective State plan under
§ 60.24(h) of this chapter are subject to
this subpart: [Reserved].
§ 62.15902
Definitions.
The terms used in this subpart shall
have the meanings set forth in this
section as follows:
Account number means the
identification number given by the
Administrator to each Hg Allowance
Tracking System account.
Acid Rain emissions limitation means
a limitation on emissions of sulfur
dioxide or nitrogen oxides under the
Acid Rain Program.
Acid Rain Program means a multistate sulfur dioxide and nitrogen oxides
air pollution control and emission
reduction program established by the
Administrator under title IV of the CAA
and parts 72 through 78 of this chapter.
Administrator means the
Administrator of the United States
Environmental Protection Agency or the
Administrator’s duly authorized
representative.
Allocate or allocation means, with
regard to Hg allowances, the
determination by a permitting authority
or the Administrator of the amount of
Hg allowances to be initially credited to
a Hg Budget unit, a new unit set-aside,
or other entity.
Allowance transfer deadline means,
for a control period, midnight of March
1 (if it is a business day), or midnight
of the first business day thereafter (if
March 1 is not a business day),
immediately following the control
period and is the deadline by which a
Hg allowance transfer must be
submitted for recordation in a Hg
Budget source’s compliance account in
order to be used to meet the source’s Hg
Budget emissions limitation for such
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control period in accordance with
§ 62.15954.
Alternate Hg designated
representative means, for a Hg Budget
source and each Hg Budget unit at the
source, the natural person who is
authorized by the owners and operators
of the source and all such units at the
source, in accordance with §§ 62.15910
through 62.15915, to act on behalf of the
Hg designated representative in matters
pertaining to the Hg Budget Trading
Program. If the Hg Budget source is also
a CAIR NOX source, then this natural
person shall be the same person as the
alternate CAIR designated
representative under the CAIR NOX
Annual Trading Program. If the Hg
Budget source is also a CAIR SO2
source, then this natural person shall be
the same person as the alternate CAIR
designated representative under the
CAIR SO2 Trading Program. If the Hg
Budget source is also a CAIR NOX
Ozone Season source, then this natural
person shall be the same person as the
alternate CAIR designated
representative under the CAIR NOX
Ozone Season Trading Program. If the
Hg Budget source is also subject to the
Acid Rain Program, then this natural
person shall be the same person as the
alternate designated representative
under the Acid Rain Program.
Automated data acquisition and
handling system or DAHS means that
component of the continuous emission
monitoring system (CEMS), or other
emissions monitoring system approved
for use under §§ 62.15970 though
62.15975, designed to interpret and
convert individual output signals from
pollutant concentration monitors, flow
monitors, diluent gas monitors, and
other component parts of the monitoring
system to produce a continuous record
of the measured parameters in the
measurement units required under
§§ 62.15970 through 62.15975.
Boiler means an enclosed fossil- or
other-fuel-fired combustion device used
to produce heat and to transfer heat to
recirculating water, steam, or other
medium.
Bottoming-cycle cogeneration unit
means a cogeneration unit in which the
energy input to the unit is first used to
produce useful thermal energy and at
least some of the reject heat from the
useful thermal energy application or
process is then used for electricity
production.
CAIR NOX Annual Trading Program
means a multi-state nitrogen oxides air
pollution control and emission
reduction program established by the
Administrator in accordance with
subparts AA through II of part 97 of this
chapter and §§ 51.123(p) and 52.35 of
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this chapter or approved and
administered by the Administrator in
accordance with subparts AA through II
of part 96 of this chapter and
§ 51.123(o)(1) or (2) of this chapter, as a
means of mitigating interstate transport
of fine particulates and nitrogen oxides.
CAIR NOX Ozone Season source
means a source that is subject to the
CAIR NOX Ozone Season Trading
Program.
CAIR NOX Ozone Season Trading
Program means a multi-state nitrogen
oxides air pollution control and
emission reduction program established
by the Administrator in accordance with
subparts AAAA through IIII of part 97
of this chapter and §§ 51.123(ee) and
52.35 of this chapter or approved and
administered by the Administrator in
accordance with subparts AAAA
through IIII of part 96 of this chapter
and § 51.123(aa)(1) or (2) (and (bb)(1)),
(bb)(2), or (dd) of this chapter, as a
means of mitigating interstate transport
of ozone and nitrogen oxides.
CAIR NOX source means a source that
is subject to the CAIR NOX Annual
Trading Program.
CAIR SO2 source means a source that
is subject to the CAIR SO2 Trading
Program.
CAIR SO2 Trading Program means a
multi-state sulfur dioxide air pollution
control and emission reduction program
established by the Administrator in
accordance with subparts AAA through
III of part 97 of this chapter and
§§ 51.124(r) and 52.36 of this chapter or
approved and administered by the
Administrator in accordance with
subparts AAA through III of part 96 of
this chapter and § 51.124(o)(1) or (2) of
this chapter, as a means of mitigating
interstate transport of fine particulates
and sulfur dioxide.
Certifying official means:
(1) For a corporation, a president,
secretary, treasurer, or vice-president of
the corporation in charge of a principal
business function or any other person
who performs similar policy or
decision-making functions for the
corporation;
(2) For a partnership or sole
proprietorship, a general partner or the
proprietor respectively; or
(3) For a local government entity or
State, Federal, or other public agency, a
principal executive officer or ranking
elected official.
Clean Air Act or CAA means the
Clean Air Act, 42 U.S.C. 7401, et seq.
Coal means any solid fuel classified as
anthracite, bituminous, subbituminous,
or lignite by the American Society of
Testing and Materials (ASTM) Standard
Specification for Classification of Coals
by Rank D388–77, 90, 91, 95, 98a, or 99
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(Reapproved 2004)e1 (incorporated by
reference, see § 60.17).
Coal-derived fuel means any fuel
(whether in a solid, liquid, or gaseous
state) produced by the mechanical,
thermal, or chemical processing of coal.
Coal-fired means combusting any
amount of coal or coal-derived fuel,
alone or in combination with any
amount of any other fuel, during any
year.
Cogeneration unit means a stationary,
coal-fired boiler or stationary, coal-fired
combustion turbine:
(1) Having equipment used to produce
electricity and useful thermal energy for
industrial, commercial, heating, or
cooling purposes through the sequential
use of energy; and
(2) Producing during the 12-month
period starting on the date the unit first
produces electricity and during any
calendar year after the calendar year in
which the unit first produces electricity:
(i) For a topping-cycle cogeneration
unit,
(A) Useful thermal energy not less
than 5 percent of total energy output;
and
(B) Useful power that, when added to
one-half of useful thermal energy
produced, is not less then 42.5 percent
of total energy input, if useful thermal
energy produced is 15 percent or more
of total energy output, or not less than
45 percent of total energy input, if
useful thermal energy produced is less
than 15 percent of total energy output.
(ii) For a bottoming-cycle
cogeneration unit, useful power not less
than 45 percent of total energy input.
Combustion turbine means:
(1) An enclosed device comprising a
compressor, a combustor, and a turbine
and in which the flue gas resulting from
the combustion of fuel in the combustor
passes through the turbine, rotating the
turbine; and
(2) If the enclosed device under
paragraph (1) of this definition is
combined cycle, any associated duct
burner, heat recovery steam generator,
and steam turbine.
Commence commercial operation
means, with regard to a unit:
(1) To have begun to produce steam,
gas, or other heated medium used to
generate electricity for sale or use,
including test generation, except as
provided in § 62.15905.
(i) For a unit that is a Hg Budget unit
under § 62.15904 on the later of
November 15, 1990 or the date the unit
commences commercial operation as
defined in paragraph (1) of this
definition and that subsequently
undergoes a physical change (other than
replacement of the unit by a unit at the
same source), such date shall remain the
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date of commencement of commercial
operation of the unit, which shall
continue to be treated as the same unit.
(ii) For a unit that is a Hg Budget unit
under § 62.15904 on the later of
November 15, 1990 or the date the unit
commences commercial operation as
defined in paragraph (1) of this
definition and that is subsequently
replaced by a unit at the same source
(e.g., repowered), such date shall remain
the replaced unit’s date of
commencement of commercial
operation, and the replacement unit
shall be treated as a separate unit with
a separate date for commencement of
commercial operation as defined in
paragraph (1) or (2) of this definition as
appropriate.
(2) Notwithstanding paragraph (1) of
this definition and except as provided
in § 62.15905, for a unit that is not a Hg
Budget unit under § 62.15904 on the
later of November 15, 1990 or the date
the unit commences commercial
operation as defined in paragraph (1) of
this definition, the unit’s date for
commencement of commercial
operation shall be the date on which the
unit becomes a Hg Budget unit under
§ 62.15904.
(i) For a unit with a date for
commencement of commercial
operation as defined in paragraph (2) of
this definition and that subsequently
undergoes a physical change (other than
replacement of the unit by a unit at the
same source), such date shall remain the
date of commencement of commercial
operation of the unit, which shall
continue to be treated as the same unit.
(ii) For a unit with a date for
commencement of commercial
operation as defined in paragraph (2) of
this definition and that is subsequently
replaced by a unit at the same source
(e.g., repowered), such date shall remain
the replaced unit’s date of
commencement of commercial
operation, and the replacement unit
shall be treated as a separate unit with
a separate date for commencement of
commercial operation as defined in
paragraph (1) or (2) of this definition as
appropriate.
Commence operation means:
(1) To have begun any mechanical,
chemical, or electronic process,
including, with regard to a unit, start-up
of a unit’s combustion chamber.
(2) For a unit that undergoes a
physical change (other than replacement
of the unit by a unit at the same source)
after the date the unit commences
operation as defined in paragraph (1) of
this definition, such date shall remain
the date of commencement of operation
of the unit, which shall continue to be
treated as the same unit.
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(3) For a unit that is replaced by a unit
at the same source (e.g., repowered)
after the date the unit commences
operation as defined in paragraph (1) of
this definition, such date shall remain
the replaced unit’s date of
commencement of operation, and the
replacement unit shall be treated as a
separate unit with a separate date for
commencement of operation as defined
in paragraph (1), (2), or (3) of this
definition, as appropriate.
Common stack means a single flue
through which emissions from 2 or
more units are exhausted.
Compliance account means a Hg
Allowance Tracking System account,
established by the Administrator for a
Hg Budget source under §§ 62.15950
through 62.15957, in which any Hg
allowance allocations for the Hg Budget
units at the source are initially recorded
and in which are held any Hg
allowances available for use for a
control period in order to meet the
source’s Hg Budget emissions limitation
in accordance with § 62.15954.
Continuous emission monitoring
system or CEMS means the equipment
required under §§ 62.15970 through
62.15975 to sample, analyze, measure,
and provide, by means of readings
recorded at least once every 15 minutes
(using an automated data acquisition
and handling system (DAHS)), a
permanent record of Hg emissions, stack
gas volumetric flow rate, stack gas
moisture content, and oxygen or carbon
dioxide concentration (as applicable), in
a manner consistent with part 75 of this
chapter. The following systems are the
principal types of continuous emission
monitoring systems required under
§§ 62.15970 through 62.15975:
(1) A flow monitoring system,
consisting of a stack flow rate monitor
and an automated data acquisition and
handling system and providing a
permanent, continuous record of stack
gas volumetric flow rate, in standard
cubic feet per hour (scfh);
(2) A Hg concentration monitoring
system, consisting of a Hg pollutant
concentration monitor and an
automated data acquisition and
handling system and providing a
permanent, continuous record of Hg
emissions in micrograms per dry
standard cubic meter (µg/dscm);
(3) A moisture monitoring system, as
defined in § 75.11(b)(2) of this chapter
and providing a permanent, continuous
record of the stack gas moisture content,
in percent H2O.
(4) A carbon dioxide monitoring
system, consisting of a CO2
concentration monitor (or an oxygen
monitor plus suitable mathematical
equations from which the CO2
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concentration is derived) and an
automated data acquisition and
handling system and providing a
permanent, continuous record of CO2
emissions, in percent CO2; and
(5) An oxygen monitoring system,
consisting of an O2 concentration
monitor and an automated data
acquisition and handling system and
providing a permanent, continuous
record of O2, in percent O2.
Control period means the period
beginning January 1 of a calendar year,
except as provided in § 62.15906(c)(2),
and ending on December 31 of the same
year, inclusive.
Emissions means air pollutants
exhausted from a unit or source into the
atmosphere, as measured, recorded, and
reported to the Administrator by the Hg
designated representative and as
determined by the Administrator in
accordance with §§ 62.15970 through
62.15975.
Excess emissions means any ounce of
mercury emitted by the Hg Budget units
at a Hg Budget source during a control
period that exceeds the Hg Budget
emissions limitation for the source.
General account means a Hg
Allowance Tracking System account,
established under § 62.15951, that is not
a compliance account.
Generator means a device that
produces electricity.
Gross electrical output means, with
regard to a cogeneration unit, electricity
made available for use, including any
such electricity used in the power
production process (which process
includes, but is not limited to, any onsite processing or treatment of fuel
combusted at the unit and any on-site
emission controls).
Heat input means, with regard to a
specified period of time, the product (in
MMBtu/time) of the gross calorific value
of the fuel (in Btu/lb) divided by
1,000,000 Btu/MMBtu and multiplied
by the fuel feed rate into a combustion
device (in lb of fuel/time), as measured,
recorded, and reported to the
Administrator by the Hg designated
representative and determined by the
Administrator in accordance with
§§ 62.15970 through 62.15975 and
excluding the heat derived from
preheated combustion air, recirculated
flue gases, or exhaust from other
sources.
Heat input rate means the amount of
heat input (in MMBtu) divided by unit
operating time (in hr) or, with regard to
a specific fuel, the amount of heat input
attributed to the fuel (in MMBtu)
divided by the unit operating time (in
hr) during which the unit combusts the
fuel.
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Hg allowance means a limited
authorization issued by a permitting
authority or the Administrator under
§§ 62.15940 through 62.15943, or under
provisions of a State plan that are
approved under § 52.24(h)(6) of this
chapter, to emit one ounce of mercury
during a control period of the specified
calendar year for which the
authorization is allocated or of any
calendar year thereafter under the Hg
Budget Trading Program. An
authorization to emit mercury that is not
issued under §§ 62.15940 through
62.15943 or under provisions of a State
plan that are approved under
§ 52.24(h)(6) of this chapter shall not be
a ‘‘Hg allowance.’’
Hg allowance deduction or deduct Hg
allowances means the permanent
withdrawal of Hg allowances by the
Administrator from a compliance
account, e.g., in order to account for a
specified number of ounces of total
mercury emissions from all Hg Budget
units at a Hg Budget source for a control
period, determined in accordance with
§§ 62.15970 through 62.15975, or to
account for excess emissions.
Hg Allowance Tracking System means
the system by which the Administrator
records allocations, deductions, and
transfers of Hg allowances under the Hg
Budget Trading Program. Such
allowances will be allocated, held,
deducted, or transferred only as whole
allowances.
Hg Allowance Tracking System
account means an account in the Hg
Allowance Tracking System established
by the Administrator for purposes of
recording the allocation, holding,
transferring, or deducting of Hg
allowances.
Hg allowances held or hold Hg
allowances means the Hg allowances
recorded by the Administrator, or
submitted to the Administrator for
recordation, in accordance with
§§ 62.15950 through 62.15962, in a Hg
Allowance Tracking System account.
Hg authorized account representative
means, with regard to a general account,
a responsible natural person who is
authorized, in accordance with
§§ 62.15910 through 62.15915 and
§§ 62.15950 through 62.15957, to
transfer and otherwise dispose of Hg
allowances held in the general account
and, with regard to a compliance
account, the Hg designated
representative of the source.
Hg Budget emissions limitation
means, for a Hg Budget source, the
equivalent, in ounces of Hg emissions in
a control period, of the Hg allowances
available for deduction for the source
under § 62.15954(a) and (b) for the
control period.
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Hg Budget permit means the legally
binding and Federally enforceable
written document, or portion of such
document, issued by the permitting
authority under §§ 62.15920 through
62.15924, including any permit
revisions, specifying the Hg Budget
Trading Program requirements
applicable to a Hg Budget source, to
each Hg Budget unit at the source, and
to the owners and operators and the Hg
designated representative of the source
and each such unit.
Hg Budget source means a source that
includes one or more Hg Budget units.
Hg Budget Trading Program means a
multi-state Hg air pollution control and
emission reduction program established
by the Administrator in accordance with
this subpart, § 60.24(h)(9) of this
chapter, and § 62.13(f) or approved and
administered by the Administrator in
accordance with subpart HHHH of part
60 and § 60.24(h)(6) of this chapter, as
a means of reducing national Hg
emissions.
Hg Budget unit means a unit that is
subject to the Hg Budget Trading
Program under § 62.15904.
Hg designated representative means,
for a Hg Budget source and each Hg
Budget unit at the source, the natural
person who is authorized by the owners
and operators of the source and all such
units at the source, in accordance with
§§ 62.15910 through 62.15915, to
represent and legally bind each owner
and operator in matters pertaining to the
Hg Budget Trading Program. If the Hg
Budget source is also a CAIR NOX
source, then this natural person shall be
the same person as the CAIR designated
representative under the CAIR NOX
Annual Trading Program. If the Hg
Budget source is also a CAIR SO2
source, then this natural person shall be
the same person as the CAIR designated
representative under the CAIR SO2
Trading Program. If the Hg Budget
source is also a CAIR NOX Ozone
Season source, then this natural person
shall be the same person as the CAIR
designated representative under the
CAIR NOX Ozone Season Trading
Program. If the Hg Budget source is also
subject to the Acid Rain Program, then
this natural person shall be the same
person as the designated representative
under the Acid Rain Program.
Life-of-the-unit, firm power
contractual arrangement means a unit
participation power sales agreement
under which a utility or industrial
customer reserves, or is entitled to
receive, a specified amount or
percentage of nameplate capacity and
associated energy generated by any
specified unit and pays its proportional
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amount of such unit’s total costs,
pursuant to a contract:
(1) For the life of the unit;
(2) For a cumulative term of no less
than 30 years, including contracts that
permit an election for early termination;
or
(3) For a period no less than 25 years
or 70 percent of the economic useful life
of the unit determined as of the time the
unit is built, with option rights to
purchase or release some portion of the
nameplate capacity and associated
energy generated by the unit at the end
of the period.
Lignite means coal that is classified as
lignite A or B according to the American
Society of Testing and Materials
(ASTM) Standard Specification for
Classification of Coals by Rank D388–
77, 90, 91, 95, 98a, or 99 (Reapproved
2004) e1 (incorporated by reference, see
§ 60.17).
Maximum design heat input means
the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of
combusting on a steady-state basis as of
the initial installation of the unit as
specified by the manufacturer of the
unit.
Monitoring system means any
monitoring system that meets the
requirements of §§ 62.15970 through
62.15975, including a continuous
emissions monitoring system, an
alternative monitoring system, or an
excepted monitoring system under part
75 of this chapter.
Municipal waste means ‘‘municipal
waste’’ as defined in section 129(g)(5) of
the Clean Air Act.
Nameplate capacity means, starting
from the initial installation of a
generator, the maximum electrical
generating output (in MWe) that the
generator is capable of producing on a
steady-state basis and during
continuous operation (when not
restricted by seasonal or other deratings)
as of such installation as specified by
the manufacturer of the generator or,
starting from the completion of any
subsequent physical change in the
generator resulting in an increase in the
maximum electrical generating output
(in MWe) that the generator is capable
of producing on a steady-state basis and
during continuous operation (when not
restricted by seasonal or other
deratings), such increased maximum
amount as of such completion as
specified by the person conducting the
physical change.
Operator means any person who
operates, controls, or supervises a Hg
Budget unit or a Hg Budget source and
shall include, but not be limited to, any
holding company, utility system, or
plant manager of such a unit or source.
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Ounce means 2.84 × 107 micrograms.
For the purpose of determining
compliance with the Hg Budget
emissions limitation, total ounces of
mercury emissions for a control period
shall be calculated as the sum of all
recorded hourly emissions (or the mass
equivalent of the recorded hourly
emission rates) in accordance with
§§ 62.15970 through 62.15975, but with
any remaining fraction of an ounce
equal to or greater than 0.50 ounces
deemed to equal one ounce and any
remaining fraction of an ounce less than
0.50 ounces deemed to equal zero
ounces.
Owner means any of the following
persons:
(1) With regard to a Hg Budget source
or a Hg Budget unit at a source,
respectively:
(i) Any holder of any portion of the
legal or equitable title in a Hg Budget
unit at the source or the Hg Budget unit;
(ii) Any holder of a leasehold interest
in a Hg Budget unit at the source or the
Hg Budget unit; or
(iii) Any purchaser of power from a
Hg Budget unit at the source or the Hg
Budget unit under a life-of-the-unit, firm
power contractual arrangement;
provided that, unless expressly
provided for in a leasehold agreement,
owner shall not include a passive lessor,
or a person who has an equitable
interest through such lessor, whose
rental payments are not based (either
directly or indirectly) on the revenues or
income from such Hg Budget unit; or
(2) With regard to any general
account, any person who has an
ownership interest with respect to the
Hg allowances held in the general
account and who is subject to the
binding agreement for the Hg authorized
account representative to represent the
person’s ownership interest with respect
to Hg allowances.
Permitting authority means the State
air pollution control agency, local
agency, other State agency, or other
agency authorized by the Administrator
to issue or revise permits to meet the
requirements of the Hg Budget Trading
Program or, if no such agency has been
so authorized, the Administrator.
Potential electrical output capacity
means 33 percent of a unit’s maximum
design heat input, divided by 3,413 Btu/
kWh, divided by 1,000 kWh/MWh, and
multiplied by 8,760 hr/yr.
Receive or receipt of means, when
referring to the permitting authority or
the Administrator, to come into
possession of a document, information,
or correspondence (whether sent in hard
copy or by authorized electronic
transmission), as indicated in an official
log, or by a notation made on the
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document, information, or
correspondence, by the permitting
authority or the Administrator in the
regular course of business.
Recordation, record, or recorded
means, with regard to Hg allowances,
the movement of Hg allowances by the
Administrator into or between Hg
Allowance Tracking System accounts,
for purposes of allocation, transfer, or
deduction.
Reference method means any direct
test method of sampling and analyzing
for an air pollutant as specified in
§ 75.22 of this chapter.
Replacement, replace, or replaced
means, with regard to a unit, the
demolishing of a unit, or the permanent
shutdown and permanent disabling of a
unit, and the construction of another
unit (the replacement unit) to be used
instead of the demolished or shutdown
unit (the replaced unit).
Repowered means, with regard to a
unit, replacement of a coal-fired boiler
with one of the following coal-fired
technologies at the same source as the
coal-fired boiler:
(1) Atmospheric or pressurized
fluidized bed combustion;
(2) Integrated gasification combined
cycle;
(3) Magnetohydrodynamics;
(4) Direct and indirect coal-fired
turbines;
(5) Integrated gasification fuel cells; or
(6) As determined by the
Administrator in consultation with the
Secretary of Energy, a derivative of one
or more of the technologies under
paragraphs (1) through (5) of this
definition and any other coal-fired
technology capable of controlling
multiple combustion emissions
simultaneously with improved boiler or
generation efficiency and with
significantly greater waste reduction
relative to the performance of
technology in widespread commercial
use as of January 1, 2005.
Sequential use of energy means:
(1) For a topping-cycle cogeneration
unit, the use of reject heat from
electricity production in a useful
thermal energy application or process;
or
(2) For a bottoming-cycle cogeneration
unit, the use of reject heat from useful
thermal energy application or process in
electricity production.
Serial number means, for a Hg
allowance, the unique identification
number assigned to each Hg allowance
by the Administrator.
Solid waste incineration unit means a
stationary, coal-fired boiler or
stationary, coal-fired combustion
turbine that is a ‘‘solid waste
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incineration unit’’ as defined in section
129(g)(1) of the Clean Air Act.
Source means all buildings,
structures, or installations located in
one or more contiguous or adjacent
properties under common control of the
same person or persons. For purposes of
section 502(c) of the Clean Air Act, a
‘‘source,’’ including a ‘‘source’’ with
multiple units, shall be considered a
single ‘‘facility.’’
State means:
(1) For purposes of referring to a
governing entity, one of the States in the
United States, the District of Columbia,
or, if approved for treatment as a State
under part 49 of this chapter, the Navajo
Nation or Ute Indian Tribe where such
governing entity is subject to a finding
by the Administrator of failure to submit
an approvable State plan under
§ 60.24(h) of this chapter and has not
subsequently submitted to the
Administrator an approved and
currently effective State plan under
§ 60.24(h) of this chapter; or
(2) For purposes of referring to
geographic areas, one of the States in the
United States, the District of Columbia,
the Navajo Nation Indian country, or the
Ute Tribe Indian country that is not
covered by an Administrator approved
and currently effective State or Tribal
plan.
Subbituminous means coal that is
classified as subbituminous A, B, or C,
according to the American Society of
Testing and Materials (ASTM) Standard
Specification for Classification of Coals
by Rank D388–77, 90, 91, 95, 98a, or 99
(Reapproved 2004) 1 (incorporated by
reference, see § 60.17).
Submit or serve means to send or
transmit a document, information, or
correspondence to the person specified
in accordance with the applicable
regulation:
(1) In person;
(2) By United States Postal Service; or
(3) By other means of dispatch or
transmission and delivery. Compliance
with any ‘‘submission’’ or ‘‘service’’
deadline shall be determined by the
date of dispatch, transmission, or
mailing and not the date of receipt.
Title V operating permit means a
permit issued under title V of the Clean
Air Act and part 70 or part 71 of this
chapter.
Title V operating permit regulations
means the regulations that the
Administrator has approved or issued as
meeting the requirements of title V of
the Clean Air Act and part 70 or 71 of
this chapter.
Topping-cycle cogeneration unit
means a cogeneration unit in which the
energy input to the unit is first used to
produce useful power, including
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electricity, and at least some of the
reject heat from the electricity
production is then used to provide
useful thermal energy.
Total energy input means, with regard
to a cogeneration unit, total energy of all
forms supplied to the cogeneration unit,
excluding energy produced by the
cogeneration unit itself.
Total energy output means, with
regard to a cogeneration unit, the sum
of useful power and useful thermal
energy produced by the cogeneration
unit.
Unit means a stationary, coal-fired
boiler or a stationary, coal-fired
combustion turbine.
Unit operating day means a calendar
day in which a unit combusts any fuel.
Unit operating hour or hour of unit
operation means an hour in which a
unit combusts any fuel.
Useful power means, with regard to a
cogeneration unit, electricity or
mechanical energy made available for
use, excluding any such energy used in
the power production process (which
process includes, but is not limited to,
any on-site processing or treatment of
fuel combusted at the unit and any onsite emission controls).
Useful thermal energy means, with
regard to a cogeneration unit, thermal
energy that is:
(1) Made available to an industrial or
commercial process (not a power
production process), excluding any heat
contained in condensate return or
makeup water;
(2) Used in a heating application (e.g.,
space heating or domestic hot water
heating); or
(3) Used in a space cooling
application (i.e., thermal energy used by
an absorption chiller).
Utility power distribution system
means the portion of an electricity grid
owned or operated by a utility and
dedicated to delivering electricity to
customers.
§ 62.15903 Measurements, abbreviations,
and acronyms.
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Measurements, abbreviations, and
acronyms used in this subpart are
defined as follows:
Btu—British thermal unit.
CO2—carbon dioxide.
H2O—water.
Hg—mercury.
hr—hour.
kW—kilowatt electrical.
kWh—kilowatt hour.
lb—pound.
MMBtu—million Btu.
MWe—megawatt electrical.
MWh—megawatt hour.
NOX—nitrogen oxides.
O2—oxygen.
ppm—parts per million.
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scfh—standard cubic feet per hour.
SO2—sulfur dioxide.
yr—year.
§ 62.15904
Applicability.
(a) Except as provided in paragraph
(b) of this section:
(1) The following units in a State shall
be Hg Budget units, and any source that
includes one or more such units shall be
a Hg Budget source, subject to the
requirements of this subpart: Any
stationary, coal-fired boiler or
stationary, coal-fired combustion
turbine serving at any time, since the
later of November 15, 1990 or the startup of the unit’s combustion chamber, a
generator with nameplate capacity of
more than 25 MWe producing electricity
for sale.
(2) If a stationary boiler or stationary
combustion turbine that, under
paragraph (a)(1) of this section, is not a
Hg Budget unit begins to combust coal
or coal-derived fuel or to serve a
generator with nameplate capacity of
more than 25 MWe producing electricity
for sale, the unit shall become a Hg
Budget unit as provided in paragraph
(a)(1) of this section on the first date on
which it both combusts coal or coalderived fuel and serves such generator.
(b) The units in a State that meet the
requirements set forth in paragraph
(b)(1)(i) or (b)(2) of this section shall not
be Hg Budget units:
(1)(i) Any unit that is a Hg Budget
unit under paragraph (a)(1) or (2) of this
section:
(A) Qualifying as a cogeneration unit
during the 12-month period starting on
the date the unit first produces
electricity and continuing to qualify as
a cogeneration unit; and
(B) Not serving at any time, since the
later of November 15, 1990 or the startup of the unit’s combustion chamber, a
generator with nameplate capacity of
more than 25 MWe supplying in any
calendar year more than one-third of the
unit’s potential electric output capacity
or 219,000 MWh, whichever is greater,
to any utility power distribution system
for sale.
(ii) If a unit qualifies as a cogeneration
unit during the 12-month period starting
on the date the unit first produces
electricity and meets the requirements
of paragraphs (b)(1)(i) of this section for
at least one calendar year, but
subsequently no longer meets all such
requirements, the unit shall become a
Hg Budget unit starting on the earlier of
January 1 after the first calendar year
during which the unit first no longer
qualifies as a cogeneration unit or
January 1 after the first calendar year
during which the unit no longer meets
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the requirements of paragraph
(b)(1)(i)(B) of this section.
(2) Any unit that is a Hg Budget unit
under paragraph (a)(1) or (2) of this
section, is a solid waste incineration
unit combusting municipal waste, and
is subject to the requirements of:
(i) A State Plan approved by the
Administrator in accordance with
subpart Cb of part 60 of this chapter
(emissions guidelines and compliance
times for certain large municipal waste
combustors);
(ii) Subpart Eb of part 60 of this
chapter (standards of performance for
certain large municipal waste
combustors);
(iii) Subpart AAAA of part 60 of this
chapter (standards of performance for
certain small municipal waste
combustors);
(iv) A State Plan approved by the
Administrator in accordance with
subpart BBBB of part 60 of this chapter
(emission guidelines and compliance
times for certain small municipal waste
combustion units);
(v) Subpart FFF, of part 62 of this
chapter (Federal Plan requirements for
certain large municipal waste
combustors); or
(vi) Subpart JJJ of part 62 of this
chapter (Federal Plan requirements for
certain small municipal waste
combustion units).
(c) A certifying official of an owner or
operator of any combustion device may
petition the Administrator at any time
for a determination concerning the
applicability, under paragraphs (a) and
(b) of this section, of the Hg Budget
Trading Program to the combustion
device.
(1) Petition content. The petition shall
be in writing and include the
identification of the combustion device
and the relevant facts about the
combustion device. The petition and
any other documents provided to the
Administrator in connection with the
petition shall include the following
certification statement, signed by the
certifying official: ‘‘I am authorized to
make this submission on behalf of the
owners and operators of the combustion
device for which the submission is
made. I certify under penalty of law that
I have personally examined, and am
familiar with, the statements and
information submitted in this document
and all its attachments. Based on my
inquiry of those individuals with
primary responsibility for obtaining the
information, I certify that the statements
and information are to the best of my
knowledge and belief true, accurate, and
complete. I am aware that there are
significant penalties for submitting false
statements and information or omitting
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required statements and information,
including the possibility of fine or
imprisonment.’’
(2) Submission. The petition and any
other documents provided in
connection with the petition shall be
submitted to the Director of the Clean
Air Markets Division (or its successor),
U.S. Environmental Protection Agency,
who will act on the petition as the
Administrator’s duly authorized
representative.
(3) Response. The Administrator will
issue a written response to the petition
and may request supplemental
information relevant to such petition.
The Administrator’s determination
concerning the applicability, under
paragraphs (a) and (b) of this section, of
the Hg Budget Trading Program to the
combustion device shall be binding on
the permitting authority unless the
petition or other information or
documents provided in connection with
the petition are found to have contained
significant, relevant errors or omissions.
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§ 62.15905
Retired unit exemption.
(a)(1) Any Hg Budget unit that is
permanently retired shall be exempt
from the Hg Budget Trading Program,
except for the provisions of this section,
§ 62.15902, § 62.15903, § 62.15904,
§ 62.15906(c)(4) through (7), § 62.15907,
§ 62.15908, §§ 62.15910 through
62.15915, and §§ 62.15940 through
62.15962.
(2) The exemption under paragraph
(a)(1) of this section shall become
effective the day on which the Hg
Budget unit is permanently retired.
Within 30 days of the unit’s permanent
retirement, the Hg designated
representative shall submit a statement
to the permitting authority otherwise
responsible for administering any Hg
Budget permit for the unit and shall
submit a copy of the statement to the
Administrator. The statement shall
state, in a format prescribed by the
permitting authority, that the unit was
permanently retired on a specific date
and will comply with the requirements
of paragraph (b) of this section.
(3) After receipt of the statement
under paragraph (a)(2) of this section,
the permitting authority will amend any
permit under §§ 62.15920 through
62.15924 covering the source at which
the unit is located to add the provisions
and requirements of the exemption
under paragraphs (a)(1) and (b) of this
section.
(b) Special provisions.
(1) A unit exempt under paragraph (a)
of this section shall not emit any
mercury, starting on the date that the
exemption takes effect.
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(2) The Administrator or the
permitting authority will allocate Hg
allowances under §§ 62.15940 through
62.15943 to a unit exempt under
paragraph (a) of this section.
(3) For a period of 5 years from the
date the records are created, the owners
and operators of a unit exempt under
paragraph (a) of this section shall retain,
at the source that includes the unit,
records demonstrating that the unit is
permanently retired. The 5-year period
for keeping records may be extended for
cause, at any time before the end of the
period, in writing by the permitting
authority or the Administrator. The
owners and operators bear the burden of
proof that the unit is permanently
retired.
(4) The owners and operators and, to
the extent applicable, the Hg designated
representative of a unit exempt under
paragraph (a) of this section shall
comply with the requirements of the Hg
Budget Trading Program concerning all
periods for which the exemption is not
in effect, even if such requirements
arise, or must be complied with, after
the exemption takes effect.
(5) A unit exempt under paragraph (a)
of this section and located at a source
that is required, or but for this
exemption would be required, to have a
title V operating permit shall not resume
operation unless the Hg designated
representative of the source submits a
complete Hg Budget permit application
under § 62.15922 for the unit not less
than 18 months (or such lesser time
provided by the permitting authority)
before the later of January 1, 2010 or the
date on which the unit resumes
operation.
(6) On the earlier of the following
dates, a unit exempt under paragraph (a)
of this section shall lose its exemption:
(i) The date on which the Hg
designated representative submits a Hg
Budget permit application for the unit
under paragraph (b)(5) of this section;
(ii) The date on which the Hg
designated representative is required
under paragraph (b)(5) of this section to
submit a Hg Budget permit application
for the unit; or
(iii) The date on which the unit
resumes operation, if the Hg designated
representative is not required to submit
a Hg Budget permit application for the
unit.
(7) For the purpose of applying
monitoring, reporting, and
recordkeeping requirements under
§§ 62.15970 through 62.15975, a unit
that loses its exemption under
paragraph (a) of this section shall be
treated as a unit that commences
commercial operation on the first date
on which the unit resumes operation.
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§ 62.15906
77133
Standard requirements.
(a) Permit requirements.
(1) The Hg designated representative
of each Hg Budget source required to
have a title V operating permit and each
Hg Budget unit required to have a title
V operating permit at the source shall:
(i) Submit to the permitting authority
a complete Hg Budget permit
application under § 62.15922 in
accordance with the deadlines specified
in § 62.15921; and
(ii) Submit in a timely manner any
supplemental information that the
permitting authority determines is
necessary in order to review a Hg
Budget permit application and issue or
deny a Hg Budget permit.
(2) The owners and operators of each
Hg Budget source required to have a
title V operating permit and each Hg
Budget unit required to have a title V
operating permit at the source shall
have a Hg Budget permit issued by the
permitting authority under §§ 62.15920
through 62.15924 for the source and
operate the source and the unit in
compliance with such Hg Budget
permit.
(3) The owners and operators of a Hg
Budget source that is not otherwise
required to have a title V operating
permit and each Hg Budget unit that is
not otherwise required to have a title V
operating permit are not required to
submit a Hg Budget permit application,
and to have a Hg Budget permit, under
§§ 62.15920 through 62.15924 for such
Hg Budget source and such Hg Budget
unit.
(b) Monitoring, reporting, and
recordkeeping requirements.
(1) The owners and operators, and the
Hg designated representative, of each Hg
Budget source and each Hg Budget unit
at the source shall comply with the
monitoring, reporting, and
recordkeeping requirements of
§§ 62.15970 through 62.15975.
(2) The emissions measurements
recorded and reported in accordance
with §§ 62.15970 through 62.15975 shall
be used to determine compliance by
each Hg Budget source with the Hg
Budget emissions limitation under
paragraph (c) of this section.
(c) Mercury emission requirements.
(1) As of the allowance transfer
deadline for a control period, the
owners and operators of each Hg Budget
source and each Hg Budget unit at the
source shall hold, in the source’s
compliance account, Hg allowances
available for compliance deductions for
the control period under § 62.15954(a)
in an amount not less than the ounces
of total mercury emissions for the
control period from all Hg Budget units
at the source, as determined in
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accordance with §§ 62.15970 through
62.15975.
(2) A Hg Budget unit shall be subject
to the requirements under paragraph
(c)(1) of this section for the control
period starting on the later of January 1,
2010 or the deadline for meeting the
unit’s monitor certification
requirements under § 62.15970(b)(1) or
(2) and for each control period
thereafter.
(3) A Hg allowance shall not be
deducted, for compliance with the
requirements under paragraph (c)(1) of
this section, for a control period in a
calendar year before the year for which
the Hg allowance was allocated.
(4) Hg allowances shall be held in,
deducted from, or transferred into or
among Hg Allowance Tracking System
accounts in accordance with
§§ 62.15940 through 62.15962.
(5) A Hg allowance is a limited
authorization to emit one ounce of
mercury in accordance with the Hg
Budget Trading Program. No provision
of the Hg Budget Trading Program, the
Hg Budget permit application, the Hg
Budget permit, or an exemption under
§ 62.15905 and no provision of law shall
be construed to limit the authority of the
United States to terminate or limit such
authorization.
(6) A Hg allowance does not
constitute a property right.
(7) Upon recordation by the
Administrator under §§ 62.15940
through 62.15962, every allocation,
transfer, or deduction of a Hg allowance
to or from a Hg Budget source’s
compliance account is incorporated
automatically in any Hg Budget permit
of the source.
(d) Excess emissions requirements. If
a Hg Budget source emits mercury
during any control period in excess of
the Hg Budget emissions limitation,
then:
(1) The owners and operators of the
source and each Hg Budget unit at the
source shall surrender the Hg
allowances required for deduction
under § 62.15954(d)(1) and pay any fine,
penalty, or assessment or comply with
any other remedy imposed, for the same
violations, under the Clean Air Act or
applicable State law; and
(2) Each ounce of such excess
emissions and each day of such control
period shall constitute a separate
violation of this subpart, the Clean Air
Act, and applicable State law.
(e) Recordkeeping and reporting
requirements.
(1) Unless otherwise provided, the
owners and operators of the Hg Budget
source and each Hg Budget unit at the
source shall keep on site at the source
each of the following documents for a
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period of 5 years from the date the
document is created. This period may
be extended for cause, at any time
before the end of 5 years, in writing by
the permitting authority or the
Administrator.
(i) The certificate of representation
under § 62.15913 for the Hg designated
representative for the source and each
Hg Budget unit at the source and all
documents that demonstrate the truth of
the statements in the certificate of
representation; provided that the
certificate and documents shall be
retained on site at the source beyond
such 5-year period until such
documents are superseded because of
the submission of a new certificate of
representation under § 62.15913
changing the Hg designated
representative.
(ii) All emissions monitoring
information, in accordance with
§§ 62.15970 through 62.15975, provided
that to the extent that §§ 62.15970
through 62.15975 provides for a 3-year
period for recordkeeping, the 3-year
period shall apply.
(iii) Copies of all reports, compliance
certifications, and other submissions
and all records made or required under
the Hg Budget Trading Program.
(iv) Copies of all documents used to
complete a Hg Budget permit
application and any other submission
under the Hg Budget Trading Program
or to demonstrate compliance with the
requirements of the Hg Budget Trading
Program.
(2) The Hg designated representative
of a Hg Budget source and each Hg
Budget unit at the source shall submit
the reports required under the Hg
Budget Trading Program, including
those under §§ 62.15970 through
62.15975.
(f) Liability.
(1) Each Hg Budget source and each
Hg Budget unit shall meet the
requirements of the Hg Budget Trading
Program.
(2) Any provision of the Hg Budget
Trading Program that applies to a Hg
Budget source or the Hg designated
representative of a Hg Budget source
shall also apply to the owners and
operators of such source and of the Hg
Budget units at the source.
(3) Any provision of the Hg Budget
Trading Program that applies to a Hg
Budget unit or the Hg designated
representative of a Hg Budget unit shall
also apply to the owners and operators
of such unit.
(g) Effect on other authorities. No
provision of the Hg Budget Trading
Program, a Hg Budget permit
application, a Hg Budget permit, or an
exemption under § 62.15905 shall be
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construed as exempting or excluding the
owners and operators, and the Hg
designated representative, of a Hg
Budget source or Hg Budget unit from
compliance with any other provision of
the applicable, approved State
implementation plan, a Federally
enforceable permit, or the Clean Air Act.
§ 62.15907
Computation of time.
(a) Unless otherwise stated, any time
period scheduled, under the Hg Budget
Trading Program, to begin on the
occurrence of an act or event shall begin
on the day the act or event occurs.
(b) Unless otherwise stated, any time
period scheduled, under the Hg Budget
Trading Program, to begin before the
occurrence of an act or event shall be
computed so that the period ends the
day before the act or event occurs.
(c) Unless otherwise stated, if the final
day of any time period, under the Hg
Budget Trading Program, falls on a
weekend or a State or Federal holiday,
the time period shall be extended to the
next business day.
§ 62.15908
Appeal procedures.
The appeal procedures for decisions
of the Administrator under the Hg
Budget Trading Program are set forth in
part 78 of this chapter.
Hg Designated Representative for Hg
Budget Sources
§ 62.15910 Authorization and
responsibilities of Hg designated
representative.
(a) Except as provided under
§ 62.15911, each Hg Budget source,
including all Hg Budget units at the
source, shall have one and only one Hg
designated representative, with regard
to all matters under the Hg Budget
Trading Program concerning the source
or any Hg Budget unit at the source.
(b) The Hg designated representative
of the Hg Budget source shall be
selected by an agreement binding on the
owners and operators of the source and
all Hg Budget units at the source and
shall act in accordance with the
certification statement in
§ 62.15913(a)(4)(iv).
(c) Upon receipt by the Administrator
of a complete certificate of
representation under § 62.15913, the Hg
designated representative of the source
shall represent and, by his or her
representations, actions, inactions, or
submissions, legally bind each owner
and operator of the Hg Budget source
represented and each Hg Budget unit at
the source in all matters pertaining to
the Hg Budget Trading Program,
notwithstanding any agreement between
the Hg designated representative and
such owners and operators. The owners
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and operators shall be bound by any
decision or order issued to the Hg
designated representative by the
permitting authority, the Administrator,
or a court regarding the source or unit.
(d) No Hg Budget permit will be
issued, no emissions data reports will be
accepted, and no Hg Allowance
Tracking System account will be
established for a Hg Budget unit at a
source, until the Administrator has
received a complete certificate of
representation under § 62.15913 for a Hg
designated representative of the source
and the Hg Budget units at the source.
(e)(1) Each submission under the Hg
Budget Trading Program shall be
submitted, signed, and certified by the
Hg designated representative for each
Hg Budget source on behalf of which the
submission is made. Each such
submission shall include the following
certification statement by the Hg
designated representative: ‘‘I am
authorized to make this submission on
behalf of the owners and operators of
the source or units for which the
submission is made. I certify under
penalty of law that I have personally
examined, and am familiar with, the
statements and information submitted
in this document and all its
attachments. Based on my inquiry of
those individuals with primary
responsibility for obtaining the
information, I certify that the statements
and information are to the best of my
knowledge and belief true, accurate, and
complete. I am aware that there are
significant penalties for submitting false
statements and information or omitting
required statements and information,
including the possibility of fine or
imprisonment.’’
(2) The permitting authority and the
Administrator will accept or act on a
submission made on behalf of owners or
operators of a Hg Budget source or a Hg
Budget unit only if the submission has
been made, signed, and certified in
accordance with paragraph (e)(1) of this
section.
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§ 62.15911 Alternate Hg designated
representative.
(a) A certificate of representation
under § 62.15913 may designate one and
only one alternate Hg designated
representative, who may act on behalf of
the Hg designated representative. The
agreement by which the alternate Hg
designated representative is selected
shall include a procedure for
authorizing the alternate Hg designated
representative to act in lieu of the Hg
designated representative.
(b) Upon receipt by the Administrator
of a complete certificate of
representation under § 62.15913, any
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representation, action, inaction, or
submission by the alternate Hg
designated representative shall be
deemed to be a representation, action,
inaction, or submission by the Hg
designated representative.
(c) Except in this section and
§§ 62.15902, 62.15910(a) and (d),
62.15912, 62.15913, 62.15915, and
62.15951, whenever the term ‘‘Hg
designated representative’’ is used in
this subpart, the term shall be construed
to include the Hg designated
representative or any alternate Hg
designated representative.
§ 62.15912 Changing Hg designated
representative and alternate Hg designated
representative; changes in owners and
operators.
(a) Changing Hg designated
representative. The Hg designated
representative may be changed at any
time upon receipt by the Administrator
of a superseding complete certificate of
representation under § 62.15913.
Notwithstanding any such change, all
representations, actions, inactions, and
submissions by the previous Hg
designated representative before the
time and date when the Administrator
receives the superseding certificate of
representation shall be binding on the
new Hg designated representative and
the owners and operators of the Hg
Budget source and the Hg Budget units
at the source.
(b) Changing alternate Hg designated
representative. The alternate Hg
designated representative may be
changed at any time upon receipt by the
Administrator of a superseding
complete certificate of representation
under § 62.15913. Notwithstanding any
such change, all representations,
actions, inactions, and submissions by
the previous alternate Hg designated
representative before the time and date
when the Administrator receives the
superseding certificate of representation
shall be binding on the new alternate Hg
designated representative and the
owners and operators of the Hg Budget
source and the Hg Budget units at the
source.
(c) Changes in owners and operators.
(1) In the event a owner or operator
of a Hg Budget source or a Hg Budget
unit is not included in the list of owners
and operators in the certificate of
representation under § 62.15913, such
owner or operator shall be deemed to be
subject to and bound by the certificate
of representation, the representations,
actions, inactions, and submissions of
the Hg designated representative and
any alternate Hg designated
representative of the source or unit, and
the decisions and orders of the
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77135
permitting authority, the Administrator,
or a court, as if the owner or operator
were included in such list.
(2) Within 30 days following any
change in the owners and operators of
a Hg Budget source or a Hg Budget unit,
including the addition of a new owner
or operator, the Hg designated
representative or any alternate Hg
designated representative shall submit a
revision to the certificate of
representation under § 62.15913
amending the list of owners and
operators to include the change.
§ 62.15913
Certificate of representation.
(a) A complete certificate of
representation for a Hg designated
representative or an alternate Hg
designated representative shall include
the following elements in a format
prescribed by the Administrator:
(1) Identification of the Hg Budget
source, and each Hg Budget unit at the
source, for which the certificate of
representation is submitted, including
identification and nameplate capacity of
each generator served by each such unit.
(2) The name, address, e-mail address
(if any), telephone number, and
facsimile transmission number (if any)
of the Hg designated representative and
any alternate Hg designated
representative.
(3) A list of the owners and operators
of the Hg Budget source and of each Hg
Budget unit at the source.
(4) The following certification
statements by the Hg designated
representative and any alternate Hg
designated representative:
(i) ‘‘I certify that I was selected as the
Hg designated representative or
alternate Hg designated representative,
as applicable, by an agreement binding
on the owners and operators of the
source and each Hg Budget unit at the
source.’’
(ii) ‘‘I certify that I have all the
necessary authority to carry out my
duties and responsibilities under the Hg
Budget Trading Program on behalf of the
owners and operators of the source and
of each Hg Budget unit at the source and
that each such owner and operator shall
be fully bound by my representations,
actions, inactions, or submissions.’’
(iii) ‘‘I certify that the owners and
operators of the source and of each Hg
Budget unit at the source shall be bound
by any order issued to me by the
Administrator, the permitting authority,
or a court regarding the source or unit.’’
(iv) ‘‘Where there are multiple holders
of a legal or equitable title to, or a
leasehold interest in, a Hg Budget unit,
or where a utility or industrial customer
purchases power from a Hg Budget unit
under a life-of-the-unit, firm power
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contractual arrangement, I certify that: I
have given a written notice of my
selection as the ‘Hg designated
representative’ or ‘alternate Hg
designated representative,’ as
applicable, and of the agreement by
which I was selected to each owner and
operator of the source and of each Hg
Budget unit at the source; and Hg
allowances and proceeds of transactions
involving Hg allowances will be deemed
to be held or distributed in proportion
to each holder’s legal, equitable,
leasehold, or contractual reservation or
entitlement, except that, if such
multiple holders have expressly
provided for a different distribution of
Hg allowances by contract, Hg
allowances and proceeds of transactions
involving Hg allowances will be deemed
to be held or distributed in accordance
with the contract.’’
(5) The signature of the Hg designated
representative and any alternate Hg
designated representative and the dates
signed.
(b) Unless otherwise required by the
permitting authority or the
Administrator, documents of agreement
referred to in the certificate of
representation shall not be submitted to
the permitting authority or the
Administrator. Neither the permitting
authority nor the Administrator shall be
under any obligation to review or
evaluate the sufficiency of such
documents, if submitted.
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§ 62.15914 Objections concerning Hg
designated representative.
(a) Once a complete certificate of
representation under § 62.15913 has
been submitted and received, the
permitting authority and the
Administrator will rely on the certificate
of representation unless and until a
superseding complete certificate of
representation under § 62.15913 is
received by the Administrator.
(b) Except as provided in
§ 62.15912(a) or (b), no objection or
other communication submitted to the
permitting authority or the
Administrator concerning the
authorization, or any representation,
action, inaction, or submission, of the
Hg designated representative shall affect
any representation, action, inaction, or
submission of the Hg designated
representative or the finality of any
decision or order by the permitting
authority or the Administrator under the
Hg Budget Trading Program.
(c) Neither the permitting authority
nor the Administrator will adjudicate
any private legal dispute concerning the
authorization or any representation,
action, inaction, or submission of any
Hg designated representative, including
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private legal disputes concerning the
proceeds of Hg allowance transfers.
§ 62.15915 Delegation by Hg designated
representative and alternate Hg designated
representative.
(a) A Hg designated representative
may delegate, to one or more natural
persons, his or her authority to make an
electronic submission to the
Administrator provided for or required
under this subpart.
(b) An alternate Hg designated
representative may delegate, to one or
more natural persons, his or her
authority to make an electronic
submission to the Administrator
provided for or required under this
subpart.
(c) In order to delegate authority to
make an electronic submission to the
Administrator in accordance with
paragraph (a) or (b) of this section, the
Hg designated representative or
alternate Hg designated representative,
as appropriate, must submit to the
Administrator a notice of delegation, in
a format prescribed by the
Administrator, that includes the
following elements:
(1) The name, address, e-mail address,
telephone number, and facsimile
transmission number (if any) of such Hg
designated representative or alternate
Hg designated representative;
(2) The name, address, e-mail address,
telephone number, and facsimile
transmission number (if any) of each
such natural person (referred to as an
‘‘agent’’);
(3) For each such natural person, a list
of the type or types of electronic
submissions under paragraph (a) or (b)
of this section for which authority is
delegated to him or her; and
(4) The following certification
statements by such Hg designated
representative or alternate Hg
designated representative:
(i) ‘‘I agree that any electronic
submission to the Administrator that is
by an agent identified in this notice of
delegation and of a type listed for such
agent in this notice of delegation and
that is made when I am a Hg designated
representative or alternate Hg
designated representative, as
appropriate, and before this notice of
delegation is superseded by another
notice of delegation under 40 CFR
62.15915(d) shall be deemed to be an
electronic submission by me.’’
(ii) ‘‘Until this notice of delegation is
superseded by another notice of
delegation under 40 CFR 62.15915(d), I
agree to maintain an e-mail account and
to notify the Administrator immediately
of any change in my e-mail address,
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unless all delegation of authority by me
under 40 CFR 62.15915 is terminated.’’
(d) A notice of delegation submitted
under paragraph (c) of this section shall
be effective, with regard to the Hg
designated representative or alternate
Hg designated representative identified
in such notice, upon receipt of such
notice by the Administrator and until
receipt by the Administrator of a
superseding notice of delegation
submitted by such Hg designated
representative or alternate Hg
designated representative, as
appropriate. The superseding notice of
delegation may replace any previously
identified agent, add a new agent, or
eliminate entirely any delegation of
authority.
(e) Any electronic submission covered
by the certification in paragraph (c)(4)(i)
of this section and made in accordance
with a notice of delegation effective
under paragraph (d) of this section shall
be deemed to be an electronic
submission by the Hg designated
representative or alternate Hg
designated representative submitting
such notice of delegation.
Permits
§ 62.15920 General Hg budget trading
program permit requirements.
(a) For each Hg Budget source
required to have a title V operating
permit, such permit shall include a Hg
Budget permit administered by the
permitting authority for the title V
operating permit. The Hg Budget
portion of the title V permit shall be
administered in accordance with the
permitting authority’s title V operating
permits regulations promulgated under
part 70 or 71 of this chapter, except as
provided otherwise by paragraph (b) of
this section, § 62.15905, and
§§ 62.15921 through 62.15924.
(b) Each Hg Budget permit shall
contain, with regard to the Hg Budget
source and the Hg Budget units at the
source covered by the Hg Budget permit,
all applicable Hg Budget Trading
Program requirements and shall be a
complete and separable portion of the
title V operating permit.
§ 62.15921 Submission of Hg budget
permit applications.
(a) Duty to apply. The Hg designated
representative of any Hg Budget source
required to have a title V operating
permit shall submit to the permitting
authority a complete Hg Budget permit
application under § 62.15922 for the
source covering each Hg Budget unit at
the source at least 18 months (or such
lesser time provided by the permitting
authority) before the later of January 1,
2010 or the date on which the Hg
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Budget unit commences commercial
operation.
(b) Duty to reapply. For a Hg Budget
source required to have a title V
operating permit, the Hg designated
representative shall submit a complete
Hg Budget permit application under
§ 62.15922 for the source covering each
Hg Budget unit at the source to renew
the Hg Budget permit in accordance
with the permitting authority’s title V
operating permits regulations
addressing permit renewal.
§ 62.15922 Information requirements for
Hg budget permit applications.
A complete Hg Budget permit
application shall include the following
elements concerning the Hg Budget
source for which the application is
submitted, in a format prescribed by the
permitting authority:
(a) Identification of the Hg Budget
source;
(b) Identification of each Hg Budget
unit at the Hg Budget source; and
(c) The standard requirements under
§ 62.15906.
the renewal of the Hg Budget permit
with issuance, revision, or renewal of
the Hg Budget source’s title V operating
permit.
§ 62.15923
term.
§ 62.15924
Hg budget permit contents and
(a) Each Hg Budget permit will
contain, in a format prescribed by the
permitting authority, all elements
required for a complete Hg Budget
permit application under § 62.15922.
(b) Each Hg Budget permit is deemed
to incorporate automatically the
definitions of terms under § 62.15902
and, upon recordation by the
Administrator under §§ 62.15940
through 62.15962, every allocation,
transfer, or deduction of a Hg allowance
to or from the compliance account of the
Hg Budget source covered by the permit.
(c) The term of the Hg Budget permit
will be set by the permitting authority,
as necessary to facilitate coordination of
Hg budget permit revisions.
Except as provided in § 62.15923(b),
the permitting authority will revise the
Hg Budget permit, as necessary, in
accordance with the permitting
authority’s title V operating permits
regulations addressing permit revisions.
§ 62.15930
[Reserved].
Hg Allowance Allocations
§ 62.15940
State trading budgets.
The State trading budgets for annual
allocations of Hg allowances for the
control periods in 2010 through 2017
and in 2018 and thereafter are
respectively as follows:
State trading budget
(tons)
State
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2010–2017
Alaska ..........................................................................................................................................................
Alabama .......................................................................................................................................................
Arkansas ......................................................................................................................................................
Arizona .........................................................................................................................................................
California ......................................................................................................................................................
Colorado ......................................................................................................................................................
Connecticut ..................................................................................................................................................
Delaware ......................................................................................................................................................
District of Columbia .....................................................................................................................................
Florida ..........................................................................................................................................................
Georgia ........................................................................................................................................................
Hawaii ..........................................................................................................................................................
Idaho ............................................................................................................................................................
Iowa .............................................................................................................................................................
Illinois ...........................................................................................................................................................
Indiana .........................................................................................................................................................
Kansas .........................................................................................................................................................
Kentucky ......................................................................................................................................................
Louisiana ......................................................................................................................................................
Massachusetts .............................................................................................................................................
Maryland ......................................................................................................................................................
Maine ...........................................................................................................................................................
Michigan .......................................................................................................................................................
Minnesota ....................................................................................................................................................
Missouri ........................................................................................................................................................
Mississippi ....................................................................................................................................................
Montana .......................................................................................................................................................
Navajo Nation Indian Country .....................................................................................................................
North Carolina ..............................................................................................................................................
North Dakota ................................................................................................................................................
Nebraska ......................................................................................................................................................
New Hampshire ...........................................................................................................................................
New Jersey ..................................................................................................................................................
New Mexico .................................................................................................................................................
Nevada .........................................................................................................................................................
New York .....................................................................................................................................................
Ohio .............................................................................................................................................................
Oklahoma .....................................................................................................................................................
Oregon .........................................................................................................................................................
Pennsylvania ................................................................................................................................................
Rhode Island ................................................................................................................................................
South Carolina .............................................................................................................................................
South Dakota ...............................................................................................................................................
Tennessee ...................................................................................................................................................
VerDate Aug<31>2005
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Jkt 211001
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E:\FR\FM\22DEP2.SGM
0.010
1.289
0.516
0.454
0.041
0.706
0.053
0.072
0
1.232
1.227
0.024
0
0.727
1.594
2.097
0.723
1.525
0.601
0.172
0.49
0.001
1.303
0.695
1.393
0.291
0.377
0.600
1.133
1.564
0.421
0.063
0.153
0.299
0.285
0.393
2.057
0.721
0.076
1.779
0
0.58
0.072
0.944
22DEP2
2018 and
thereafter
0.004
0.509
0.204
0.179
0.016
0.279
0.021
0.028
0
0.487
0.484
0.009
0
0.287
0.629
0.828
0.285
0.602
0.237
0.068
0.193
0.001
0.514
0.274
0.550
0.115
0.149
0.237
0.447
0.617
0.166
0.025
0.060
0.118
0.112
0.155
0.812
0.285
0.030
0.702
0
0.229
0.029
0.373
77138
Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
State trading budget
(tons)
State
2010–2017
Texas ...........................................................................................................................................................
Utah .............................................................................................................................................................
Ute Indian Tribe Reservation Indian Country ..............................................................................................
Virginia .........................................................................................................................................................
Vermont .......................................................................................................................................................
Washington ..................................................................................................................................................
Wisconsin .....................................................................................................................................................
West Virginia ................................................................................................................................................
Wyoming ......................................................................................................................................................
§ 62.15941 Timing requirements for Hg
allowance allocations.
(a) The Administrator will determine
by order the Hg allowance allocations,
in accordance with § 62.15942(a) and
(b), for the control periods in 2010,
2011, 2012, 2013, and 2014.
(b) By July 31, 2011 and July 31 of
each year thereafter, the Administrator
will determine by order the Hg
allowance allocations, in accordance
with § 62.15942(a) and (b), for the
control period in the fourth year after
the year of the applicable deadline for
determination under this paragraph.
(c) By July 31, 2010 and July 31 of
each year thereafter, the Administrator
will determine by order the Hg
allowance allocations, in accordance
with § 62.15942(a), (c), and (d), for the
control period in the year of the
applicable deadline for determination
under this paragraph.
(d) The Administrator will make
available to the public each
determination of Hg allowances under
paragraph (a), (b), or (c) of this section
and will provide an opportunity for
submission of objections to the
determination. Objections shall be
limited to addressing whether the
determination is in accordance with
§ 62.15942. Based on any such
objections, the Administrator will adjust
each determination to the extent
necessary to ensure that it is in
accordance with § 62.15942.
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§ 62.15942
Hg allowance allocations.
(a)(1) The baseline heat input (in
MMBtu) used with respect to Hg
allowance allocations under paragraph
(b) of this section for each Hg Budget
unit will be:
(i) For units commencing operation
before January 1, 2001, the average of
the three highest amounts of the unit’s
adjusted control period heat input for
2000 through 2004, with the adjusted
control period heat input for each year
calculated as the sum of the following:
(A) Any portion of the unit’s control
period heat input for the year that
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Jkt 211001
results from the unit’s combustion of
lignite, multiplied by 3.0;
(B) Any portion of the unit’s control
period heat input for the year that
results from the unit’s combustion of
subbituminous coal, multiplied by 1.25;
and
(C) Any portion of the unit’s control
period heat input for the year that is not
covered by paragraph (a)(1)(i)(A) or (B)
of this section, multiplied by 1.0.
(ii) For units commencing operation
on or after January 1, 2001 and
operating each calendar year during a
period of 5 or more consecutive
calendar years, the average of the 3
highest amounts of the unit’s total
converted control period heat input over
the first such 5 years.
(2)(i) A unit’s control period heat
input for a calendar year under
paragraph (a)(1)(i) of this section, and a
unit’s total ounces of Hg emissions
during a calendar year under paragraph
(c)(3) of this section, will be determined
in accordance with part 75 of this
chapter, to the extent the unit was
otherwise subject to the requirements of
part 75 of this chapter for the year, or
will be based on the best available data
reported to the Administrator for the
unit, to the extent the unit was not
otherwise subject to the requirements of
part 75 of this chapter for the year. The
unit’s types and amounts of fuel
combusted, under paragraph (a)(1)(i) of
this section, will be based on the best
available data reported to the
Administrator for the unit.
(ii) A unit’s converted control period
heat input for a calendar year specified
under paragraph (a)(1)(ii) of this section
equals:
(A) Except as provided in paragraph
(a)(2)(ii)(B) or (C) of this section, the
control period gross electrical output of
the generator or generators served by the
unit multiplied by 7,900 Btu/kWh and
divided by 1,000,000 Btu/MMBtu,
provided that if a generator is served by
2 or more units, then the gross electrical
output of the generator will be
attributed to each unit in proportion to
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4.656
0.506
0.060
0.592
0
0.198
0.89
1.394
0.952
2018 and
thereafter
1.838
0.200
0.024
0.234
0
0.078
0.351
0.550
0.376
the unit’s share of the total control
period heat input of such units for the
year;
(B) For a unit that is a boiler and has
equipment used to produce electricity
and useful thermal energy for industrial,
commercial, heating, or cooling
purposes through the sequential use of
energy, the total heat energy (in Btu) of
the steam produced by the boiler during
the control period, divided by 0.8 and
by 1,000,000 Btu/MMBtu; or
(C) For a unit that is a combustion
turbine and has equipment used to
produce electricity and useful thermal
energy for industrial, commercial,
heating, or cooling purposes through the
sequential use of energy, the control
period gross electrical output of the
enclosed device comprising the
compressor, combustor, and turbine
multiplied by 3,413 Btu/kWh, plus the
total heat energy (in Btu) of the steam
produced by any associated heat
recovery steam generator during the
control period divided by 0.8, and with
the sum divided by 1,000,000 Btu/
MMBtu.
(iii) Gross electrical output and total
heat energy under paragraph (a)(2)(ii) of
this section will be determined based on
the best available data reported to the
Administrator.
(3) The Administrator will determine
what data are the best available data
under paragraph (a)(2) of this section by
weighing the likelihood that data are
accurate and reliable and giving greater
weight to data submitted to a
governmental entity in compliance with
legal requirements or substantiated by
an independent entity.
(b)(1) For each control period in 2010
and thereafter, the Administrator will
allocate to all Hg Budget units in a State
that have a baseline heat input (as
determined under paragraph (a) of this
section) a total amount of Hg allowances
equal to 95 percent for a control period
in 2010 through 2014, and 97 percent
for a control period in 2015 and
thereafter, of the amount of ounces (i.e.,
tons multiplied by 32,000 ounces/ton)
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Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
of Hg emissions in the applicable State
trading budget under § 62.15940 (except
as provided in paragraph (d) of this
section).
(2) The Administrator will allocate Hg
allowances to each Hg Budget unit
under paragraph (b)(1) of this section in
an amount determined by multiplying
the total amount of Hg allowances
allocated under paragraph (b)(1) of this
section by the ratio of the baseline heat
input of such Hg Budget unit to the total
amount of baseline heat input of all
such Hg Budget units in the State and
rounding to the nearest whole
allowance as appropriate.
(c) For each control period in 2009
and thereafter, the Administrator will
allocate Hg allowances to Hg Budget
units in a State that are not allocated Hg
allowances under paragraph (b) of this
section because the units do not yet
have a baseline heat input under
paragraph (a) of this section or because
the units have a baseline heat input but
all Hg allowances available under
paragraph (b) of this section for the
control period are already allocated, in
accordance with the following
procedures:
(1) The Administrator will establish a
separate new unit set-aside for each
control period. Each new unit set-aside
will be allocated Hg allowances equal to
5 percent for a control period in 2010
through 2014, and 3 percent for a
control period in 2015 and thereafter, of
the amount of ounces (i.e., tons
multiplied by 32,000 ounces/ton) of Hg
emissions in the applicable State trading
budget under § 62.15940.
(2) The Hg designated representative
of such a Hg Budget unit may submit to
the Administrator a request, in a format
specified by the Administrator, to be
allocated Hg allowances, starting with
the later of the control period in 2010
or the first control period after the
control period in which the Hg Budget
unit commences commercial operation
and until the first control period for
which the unit is allocated Hg
allowances under paragraph (b) of this
section. A separate Hg allowance
allocation request for each control
period for which Hg allowances are
sought must be submitted on or before
May 1 of such control period and after
the date on which the Hg Budget unit
commences commercial operation.
(3) In a Hg allowance allocation
request under paragraph (c)(2) of this
section, the Hg designated
representative may request for a control
period Hg allowances in an amount not
exceeding the Hg Budget unit’s total
ounces of Hg emissions during the
calendar year immediately before such
control period.
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15:05 Dec 21, 2006
Jkt 211001
(4) The Administrator will review
each Hg allowance allocation request
under paragraph (c)(2) of this section
and will allocate Hg allowances for each
control period pursuant to such request
as follows:
(i) The Administrator will accept an
allowance allocation request only if the
request meets, or is adjusted by the
Administrator as necessary to meet, the
requirements of paragraphs (c)(2) and
(3) of this section.
(ii) On or after May 1 of the control
period, the Administrator will
determine the sum of the Hg allowances
requested (as adjusted under paragraph
(c)(4)(i) of this section) in all allowance
allocation requests accepted under
paragraph (c)(4)(i) of this section for the
control period.
(iii) If the amount of Hg allowances in
the new unit set-aside for the control
period is greater than or equal to the
sum under paragraph (c)(4)(ii) of this
section, then the Administrator will
allocate the amount of Hg allowances
requested (as adjusted under paragraph
(c)(4)(i) of this section) to each Hg
Budget unit covered by an allowance
allocation request accepted under
paragraph (c)(4)(i) of this section.
(iv) If the amount of Hg allowances in
the new unit set-aside for the control
period is less than the sum under
paragraph (c)(4)(ii) of this section, then
the Administrator will allocate to each
Hg Budget unit covered by an allowance
allocation request accepted under
paragraph (c)(4)(i) of this section the
amount of the Hg allowances requested
(as adjusted under paragraph (c)(4)(i) of
this section), multiplied by the amount
of Hg allowances in the new unit setaside for the control period, divided by
the sum determined under paragraph
(c)(4)(ii) of this section, and rounded to
the nearest whole allowance as
appropriate.
(v) The Administrator will notify each
Hg designated representative that
submitted an allowance allocation
request of the amount of Hg allowances
(if any) allocated for the control period
to the Hg Budget unit covered by the
request.
(d) If, after completion of the
procedures under paragraph (c)(4) of
this section for a control period, any
unallocated Hg allowances remain in
the new unit set-aside under paragraph
(c) for a State for the control period, the
Administrator will allocate to each Hg
Budget unit that was allocated Hg
allowances under paragraph (b) of this
section in the State an amount of Hg
allowances equal to the total amount of
such remaining unallocated Hg
allowances, multiplied by the unit’s
allocation under paragraph (b) of this
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77139
section, divided by 95 percent for a
control period in 2010 through 2014,
and 97 percent for a control period in
2015 and thereafter, of the amount of
ounces (i.e., tons multiplied by 32,000
ounces/ton) of Hg emissions in the
applicable State trading budget under
§ 62.15940, and rounded to the nearest
whole allowance as appropriate.
(e) If the Administrator determines
that Hg allowances were allocated under
paragraphs (a) and (b) of this section,
paragraphs (a) and (c) of this section, or
paragraph (d) of this section for a
control period and that the recipient of
the allocation is not actually a Hg
Budget unit under § 62.15904 in such
control period, then the Administrator
will notify the Hg designated
representative and will act in
accordance with the following
procedures:
(1) Except as provided in paragraph
(e)(2) or (3) of this section, the
Administrator will not record such Hg
allowances under § 62.15953.
(2) If the Administrator already
recorded such Hg allowances under
§ 62.15953 and if the Administrator
makes such determination before
making deductions for the source that
includes such recipient under
§ 62.15954(b) for the control period,
then the Administrator will deduct from
the account in which such Hg
allowances were recorded under
§ 62.15953 an amount of Hg allowances
allocated for the same or a prior control
period equal to the amount of such
already recorded Hg allowances. The Hg
authorized account representative shall
ensure that there are sufficient Hg
allowances in such account for
completion of the deduction.
(3) If the Administrator already
recorded such Hg allowances under
§ 62.15953 and if the Administrator
makes such determination after making
deductions for the source that includes
such recipient under § 62.15954(b) for
the control period, then the
Administrator will apply paragraph
(e)(1) or (2) of this section, as
appropriate, to any subsequent control
period for which Hg allowances were
allocated to such recipient.
(4) The Administrator will transfer the
Hg allowances that are not recorded, or
that are deducted, in accordance with
paragraphs (e)(1), (2), and (3) of this
section to a new unit set-aside for the
State in which such recipient is located.
§ 62.15943 Alternative of allocation of Hg
allowances by permitting authority.
(a) Notwithstanding §§ 62.15941,
62.15942, and 62.15953 if a State
submits, and the Administrator
approves, a State allocation
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methodology in accordance with
§ 60.24(h)(9) of this chapter providing
for allocation of Hg allowances for any
control period by the permitting
authority, then, for each such control
period:
(1) The permitting authority shall
make such allocations in accordance
with such approved State allocation
methodology;
(2) The Administrator will not make
allocations under §§ 62.15941 and
62.15942 for the Hg Budget units in the
State; and
(3) Under § 62.15953, the
Administrator will record the
allocations made under such approved
State allocation methodology instead of
allocations under §§ 62.15941 and
62.15942.
(b) In implementing paragraph (a) of
this section and §§ 62.15941, 62.15942,
and 62.15953, the Administrator will
ensure that the total amount of Hg
allowances allocated, under such
provisions and under a State’s State
allocation methodology approved in
accordance with § 60.24(h)(9) of this
chapter, for a control period for Hg
Budget sources in the State or for other
entities specified by the permitting
authority will not exceed the State’s
State trading budget for the year of the
control period.
Hg Allowance Tracking System
[Reserved]
§ 62.15951
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§ 62.15950
Establishment of accounts.
(a) Compliance accounts. Upon
receipt of a complete certificate of
representation under § 62.15913, the
Administrator will establish a
compliance account for the Hg Budget
source for which the certificate of
representation was submitted unless the
source already has a compliance
account.
(b) General accounts.
(1) Application for general account.
(i) Any person may apply to open a
general account for the purpose of
holding and transferring Hg allowances.
An application for a general account
may designate one and only one Hg
authorized account representative and
one and only one alternate Hg
authorized account representative who
may act on behalf of the Hg authorized
account representative. The agreement
by which the alternate Hg authorized
account representative is selected shall
include a procedure for authorizing the
alternate Hg authorized account
representative to act in lieu of the Hg
authorized account representative.
(ii) A complete application for a
general account shall be submitted to
the Administrator and shall include the
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following elements in a format
prescribed by the Administrator:
(A) Name, mailing address, e-mail
address (if any), telephone number, and
facsimile transmission number (if any)
of the Hg authorized account
representative and any alternate Hg
authorized account representative;
(B) Organization name and type of
organization, if applicable;
(C) A list of all persons subject to a
binding agreement for the Hg authorized
account representative and any alternate
Hg authorized account representative to
represent their ownership interest with
respect to the Hg allowances held in the
general account;
(D) The following certification
statement by the Hg authorized account
representative and any alternate Hg
authorized account representative: ‘‘I
certify that I was selected as the Hg
authorized account representative or the
alternate Hg authorized account
representative, as applicable, by an
agreement that is binding on all persons
who have an ownership interest with
respect to Hg allowances held in the
general account. I certify that I have all
the necessary authority to carry out my
duties and responsibilities under the Hg
Budget Trading Program on behalf of
such persons and that each such person
shall be fully bound by my
representations, actions, inactions, or
submissions and by any order or
decision issued to me by the
Administrator or a court regarding the
general account.’’
(E) The signature of the Hg authorized
account representative and any alternate
Hg authorized account representative
and the dates signed.
(iii) Unless otherwise required by the
permitting authority or the
Administrator, documents of agreement
referred to in the application for a
general account shall not be submitted
to the permitting authority or the
Administrator. Neither the permitting
authority nor the Administrator shall be
under any obligation to review or
evaluate the sufficiency of such
documents, if submitted.
(2) Authorization of Hg authorized
account representative and alternate Hg
authorized account representative.
(i) Upon receipt by the Administrator
of a complete application for a general
account under paragraph (b)(1) of this
section:
(A) The Administrator will establish a
general account for the person or
persons for whom the application is
submitted.
(B) The Hg authorized account
representative and any alternate Hg
authorized account representative for
the general account shall represent and,
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by his or her representations, actions,
inactions, or submissions, legally bind
each person who has an ownership
interest with respect to Hg allowances
held in the general account in all
matters pertaining to the Hg Budget
Trading Program, notwithstanding any
agreement between the Hg authorized
account representative or any alternate
Hg authorized account representative
and such person. Any such person shall
be bound by any order or decision
issued to the Hg authorized account
representative or any alternate Hg
authorized account representative by
the Administrator or a court regarding
the general account.
(C) Any representation, action,
inaction, or submission by any alternate
Hg authorized account representative
shall be deemed to be a representation,
action, inaction, or submission by the
Hg authorized account representative.
(ii) Each submission concerning the
general account shall be submitted,
signed, and certified by the Hg
authorized account representative or
any alternate Hg authorized account
representative for the persons having an
ownership interest with respect to Hg
allowances held in the general account.
Each such submission shall include the
following certification statement by the
Hg authorized account representative or
any alternate Hg authorized account
representative: ‘‘I am authorized to
make this submission on behalf of the
persons having an ownership interest
with respect to the Hg allowances held
in the general account. I certify under
penalty of law that I have personally
examined, and am familiar with, the
statements and information submitted
in this document and all its
attachments. Based on my inquiry of
those individuals with primary
responsibility for obtaining the
information, I certify that the statements
and information are to the best of my
knowledge and belief true, accurate, and
complete. I am aware that there are
significant penalties for submitting false
statements and information or omitting
required statements and information,
including the possibility of fine or
imprisonment.’’
(iii) The Administrator will accept or
act on a submission concerning the
general account only if the submission
has been made, signed, and certified in
accordance with paragraph (b)(2)(ii) of
this section.
(3) Changing Hg authorized account
representative and alternate Hg
authorized account representative;
changes in persons with ownership
interest.
(i) The Hg authorized account
representative for a general account may
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be changed at any time upon receipt by
the Administrator of a superseding
complete application for a general
account under paragraph (b)(1) of this
section. Notwithstanding any such
change, all representations, actions,
inactions, and submissions by the
previous Hg authorized account
representative before the time and date
when the Administrator receives the
superseding application for a general
account shall be binding on the new Hg
authorized account representative and
the persons with an ownership interest
with respect to the Hg allowances in the
general account.
(ii) The alternate Hg authorized
account representative for a general
account may be changed at any time
upon receipt by the Administrator of a
superseding complete application for a
general account under paragraph (b)(1)
of this section. Notwithstanding any
such change, all representations,
actions, inactions, and submissions by
the previous alternate Hg authorized
account representative before the time
and date when the Administrator
receives the superseding application for
a general account shall be binding on
the new alternate Hg authorized account
representative and the persons with an
ownership interest with respect to the
Hg allowances in the general account.
(iii)(A) In the event a person having
an ownership interest with respect to Hg
allowances in the general account is not
included in the list of such persons in
the application for a general account,
such person shall be deemed to be
subject to and bound by the application
for a general account, the
representation, actions, inactions, and
submissions of the Hg authorized
account representative and any alternate
Hg authorized account representative of
the account, and the decisions and
orders of the Administrator or a court,
as if the person were included in such
list.
(B) Within 30 days following any
change in the persons having an
ownership interest with respect to Hg
allowances in the general account,
including the addition of a new person,
the Hg authorized account
representative or any alternate Hg
authorized account representative shall
submit a revision to the application for
a general account amending the list of
persons having an ownership interest
with respect to the Hg allowances in the
general account to include the change.
(4) Objections concerning Hg
authorized account representative and
alternate Hg authorized account
representative.
(i) Once a complete application for a
general account under paragraph (b)(1)
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of this section has been submitted and
received, the Administrator will rely on
the application unless and until a
superseding complete application for a
general account under paragraph (b)(1)
of this section is received by the
Administrator.
(ii) Except as provided in paragraph
(b)(3)(i) or (ii) of this section, no
objection or other communication
submitted to the Administrator
concerning the authorization, or any
representation, action, inaction, or
submission of the Hg authorized
account representative or any alternate
Hg authorized account representative
for a general account shall affect any
representation, action, inaction, or
submission of the Hg authorized
account representative or any alternate
Hg authorized account representative or
the finality of any decision or order by
the Administrator under the Hg Budget
Trading Program.
(iii) The Administrator will not
adjudicate any private legal dispute
concerning the authorization or any
representation, action, inaction, or
submission of the Hg authorized
account representative or any alternate
Hg authorized account representative
for a general account, including private
legal disputes concerning the proceeds
of Hg allowance transfers.
(5) Delegation by Hg authorized
account representative and alternate Hg
authorized account representative.
(i) A Hg authorized account
representative may delegate, to one or
more natural persons, his or her
authority to make an electronic
submission to the Administrator
provided for or required under this
section and §§ 62.15952 through
62.15962.
(ii) An alternate Hg authorized
account representative may delegate, to
one or more natural persons, his or her
authority to make an electronic
submission to the Administrator
provided for or required under this
section and §§ 62.15952 through
62.15962.
(iii) In order to delegate authority to
make an electronic submission to the
Administrator in accordance with
paragraph (b)(5)(i) or (ii) of this section,
the Hg authorized account
representative or alternate Hg
authorized account representative, as
appropriate, must submit to the
Administrator a notice of delegation, in
a format prescribed by the
Administrator, that includes the
following elements:
(A) The name, address, e-mail
address, telephone number, and
facsimile transmission number (if any)
of such Hg authorized account
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77141
representative or alternate Hg
authorized account representative;
(B) The name, address, e-mail
address, telephone number, and,
facsimile transmission number (if any)
of each such natural person (referred to
as an ‘‘agent’’);
(C) For each such natural person, a
list of the type or types of electronic
submissions under paragraph (b)(5)(i) or
(ii) of this section for which authority is
delegated to him or her;
(D) The following certification
statement by such Hg authorized
account representative or alternate Hg
authorized account representative: ‘‘I
agree that any electronic submission to
the Administrator that is by an agent
identified in this notice of delegation
and of a type listed for such agent in
this notice of delegation and that is
made when I am a Hg authorized
account representative or alternate Hg
authorized representative, as
appropriate, and before this notice of
delegation is superseded by another
notice of delegation under 40 CFR
62.15951(b)(5)(iv) shall be deemed to be
an electronic submission by me.’’; and
(E) The following certification
statement by such Hg authorized
account representative or alternate Hg
authorized account representative:
‘‘Until this notice of delegation is
superseded by another notice of
delegation under 40 CFR 62.15951
(b)(5)(iv), I agree to maintain an e-mail
account and to notify the Administrator
immediately of any change in my e-mail
address unless all delegation of
authority under 40 CFR 62.15951(b)(5)
is terminated.’’
(iv) A notice of delegation submitted
under paragraph (b)(5)(iii) of this
section shall be effective, with regard to
the Hg authorized account
representative or alternate Hg
authorized account representative
identified in such notice, upon receipt
of such notice by the Administrator and
until receipt by the Administrator of a
superseding notice of delegation
submitted by such Hg authorized
account representative or alternate Hg
authorized account representative, as
appropriate. The superseding notice of
delegation may replace any previously
identified agent, add a new agent, or
eliminate entirely any delegation of
authority.
(v) Any electronic submission covered
by the certification in paragraph
(b)(5(iii)(D) of this section and made in
accordance with a notice of delegation
effective under paragraph (b)(5)(iv) of
this section shall be deemed to be an
electronic submission by the Hg
designated representative or alternate
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Hg designated representative submitting
such notice of delegation.
(c) Account identification. The
Administrator will assign a unique
identifying number to each account
established under paragraph (a) or (b) of
this section.
§ 62.15952 Responsibilities of Hg
authorized account representative.
Following the establishment of a Hg
Allowance Tracking System account, all
submissions to the Administrator
pertaining to the account, including, but
not limited to, submissions concerning
the deduction or transfer of Hg
allowances in the account, shall be
made only by the Hg authorized account
representative for the account.
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§ 62.15953 Recordation of Hg allowance
allocations.
(a) By December 1, 2007, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source in accordance
with § 62.15942(a) and (b) for the
control period in 2010.
(b) By December 1, 2008, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source in accordance
with § 62.15942(a) and (b) for the
control period in 2011.
(c) By December 1, 2009, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source in accordance
with § 62.15942(a) and (b) for the
control periods in 2012 and 2013.
(d) By December 1, 2010 and
December 1 of each year thereafter, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source in accordance
with § 62.15942(a) and (b) for the
control period in the fourth year after
the year of the applicable deadline for
recordation under this paragraph.
(e) By December 1, 2009 and
December 1 of each year thereafter, the
Administrator will record in the Hg
Budget source’s compliance account the
Hg allowances allocated for the Hg
Budget units at the source in accordance
with § 62.15942(a) and (c) for the
control period in the year of the
applicable deadline for recordation
under this paragraph.
(f) Serial numbers for allocated Hg
allowances. When recording the
allocation of Hg allowances for a Hg
Budget unit in a compliance account,
the Administrator will assign each Hg
allowance a unique identification
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number that will include digits
identifying the year of the control
period for which the Hg allowance is
allocated.
§ 62.15954 Compliance with Hg Budget
emissions limitation.
(a) Allowance transfer deadline. The
Hg allowances are available to be
deducted for compliance with a source’s
Hg Budget emissions limitation for a
control period in a given calendar year
only if the Hg allowances:
(1) Were allocated for the control
period in the year or a prior year; and
(2) Are held in the compliance
account as of the allowance transfer
deadline for the control period or are
transferred into the compliance account
by a Hg allowance transfer correctly
submitted for recordation under
§§ 62.15960 and 62.15961 by the
allowance transfer deadline for the
control period.
(b) Deductions for compliance.
Following the recordation, in
accordance with § 62.15961, of Hg
allowance transfers submitted for
recordation in a source’s compliance
account by the allowance transfer
deadline for a control period, the
Administrator will deduct from the
compliance account Hg allowances
available under paragraph (a) of this
section in order to determine whether
the source meets the Hg Budget
emissions limitation for the control
period, as follows:
(1) Until the amount of Hg allowances
deducted equals the number of ounces
of total Hg emissions, determined in
accordance with §§ 62.15970 through
62.15975, from all Hg Budget units at
the source for the control period; or
(2) If there are insufficient Hg
allowances to complete the deductions
in paragraph (b)(1) of this section, until
no more Hg allowances available under
paragraph (a) of this section remain in
the compliance account.
(c)(1) Identification of Hg allowances
by serial number. The Hg authorized
account representative for a source’s
compliance account may request that
specific Hg allowances, identified by
serial number, in the compliance
account be deducted for emissions or
excess emissions for a control period in
accordance with paragraph (b) or (d) of
this section. Such request shall be
submitted to the Administrator by the
allowance transfer deadline for the
control period and include, in a format
prescribed by the Administrator, the
identification of the Hg Budget source
and the appropriate serial numbers.
(2) First-in, first-out. The
Administrator will deduct Hg
allowances under paragraph (b) or (d) of
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this section from the source’s
compliance account, in the absence of
an identification or in the case of a
partial identification of Hg allowances
by serial number under paragraph (c)(1)
of this section, on a first-in, first-out
(FIFO) accounting basis in the following
order:
(i) Any Hg allowances that were
allocated to the units at the source, in
the order of recordation; and then
(ii) Any Hg allowances that were
allocated to any entity and transferred
and recorded in the compliance account
pursuant to §§ 62.15960 through
62.15962, in the order of recordation.
(d) Deductions for excess emissions.
(1) After making the deductions for
compliance under paragraph (b) of this
section for a control period in a calendar
year in which the Hg Budget source has
excess emissions, the Administrator will
deduct from the source’s compliance
account an amount of Hg allowances,
allocated for the control period in the
immediately following calendar year,
equal to 3 times the number of ounces
of the source’s excess emissions.
(2) Any allowance deduction required
under paragraph (d)(1) of this section
shall not affect the liability of the
owners and operators of the Hg Budget
source or the Hg Budget units at the
source for any fine, penalty, or
assessment, or their obligation to
comply with any other remedy, for the
same violations, as ordered under the
Clean Air Act or applicable State law.
(e) Recordation of deductions. The
Administrator will record in the
appropriate compliance account all
deductions from such an account under
paragraph (b) and (d) of this section.
(f) Administrator’s action on
submissions.
(1) The Administrator may review and
conduct independent audits concerning
any submission under the Hg Budget
Trading Program and make appropriate
adjustments of the information in the
submissions.
(2) The Administrator may deduct Hg
allowances from or transfer Hg
allowances to a source’s compliance
account based on the information in the
submissions, as adjusted under
paragraph (f)(1) of this section, and
record such deductions and transfers.
§ 62.15955
Banking.
(a) Hg allowances may be banked for
future use or transfer in a compliance
account or a general account in
accordance with paragraph (b) of this
section.
(b) Any Hg allowance that is held in
a compliance account or a general
account will remain in such account
unless and until the Hg allowance is
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deducted or transferred under
§ 62.15942, § 62.15954, § 62.15956, or
§§ 62.15960 through 62.15962.
§ 62.15956
Account error.
The Administrator may, at his or her
sole discretion and on his or her own
motion, correct any error in any Hg
Allowance Tracking System account.
Within 10 business days of making such
correction, the Administrator will notify
the Hg authorized account
representative for the account.
§ 62.15957
Closing of general accounts.
(a) The Hg authorized account
representative of a general account may
submit to the Administrator a request to
close the account, which shall include
a correctly submitted allowance transfer
under §§ 62.15960 and 62.15961 for any
Hg allowances in the account to one or
more other Hg Allowance Tracking
System accounts.
(b) If a general account has no
allowance transfers in or out of the
account for a 12-month period or longer
and does not contain any Hg
allowances, the Administrator may
notify the Hg authorized account
representative for the account that the
account will be closed following 20
business days after the notice is sent.
The account will be closed after the 20day period unless, before the end of the
20-day period, the Administrator
receives a correctly submitted transfer of
Hg allowances into the account under
§§ 62.15960 and 62.15961 or a statement
submitted by the Hg authorized account
representative demonstrating to the
satisfaction of the Administrator good
cause as to why the account should not
be closed.
Hg Allowance Transfers
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§ 62.15960
transfers.
Submission of Hg allowance
An Hg authorized account
representative seeking recordation of a
Hg allowance transfer shall submit the
transfer to the Administrator. To be
considered correctly submitted, the Hg
allowance transfer shall include the
following elements, in a format
specified by the Administrator:
(a) The account numbers for both the
transferor and transferee accounts;
(b) The serial number of each Hg
allowance that is in the transferor
account and is to be transferred; and
(c) The name and signature of the Hg
authorized account representative of the
transferor account and the date signed.
§ 62.15961
EPA recordation.
(a) Within 5 business days (except as
provided in paragraph (b) of this
section) of receiving a Hg allowance
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transfer, the Administrator will record a
Hg allowance transfer by moving each
Hg allowance from the transferor
account to the transferee account as
specified by the request, provided that:
(1) The transfer is correctly submitted
under § 62.15960; and
(2) The transferor account includes
each Hg allowance identified by serial
number in the transfer.
(b) A Hg allowance transfer that is
submitted for recordation after the
allowance transfer deadline for a control
period and that includes any Hg
allowances allocated for any control
period before such allowance transfer
deadline will not be recorded until after
the Administrator completes the
deductions under § 62.15954 for the
control period immediately before such
allowance transfer deadline.
(c) Where a Hg allowance transfer
submitted for recordation fails to meet
the requirements of paragraph (a) of this
section, the Administrator will not
record such transfer.
§ 62.15962
Notification.
(a) Notification of recordation. Within
5 business days of recordation of a Hg
allowance transfer under § 62.15961, the
Administrator will notify the Hg
authorized account representatives of
both the transferor and transferee
accounts.
(b) Notification of non-recordation.
Within 10 business days of receipt of a
Hg allowance transfer that fails to meet
the requirements of § 62.15961(a), the
Administrator will notify the Hg
authorized account representatives of
both accounts subject to the transfer of:
(1) A decision not to record the
transfer, and
(2) The reasons for such nonrecordation.
(c) Nothing in this section shall
preclude the submission of a Hg
allowance transfer for recordation
following notification of nonrecordation.
Monitoring and Reporting
§ 62.15970
General requirements.
The owners and operators, and to the
extent applicable, the Hg designated
representative, of a Hg Budget unit,
shall comply with the monitoring,
recordkeeping, and reporting
requirements as provided in this
section, §§ 62.15971 through 62.15975,
and subpart I of part 75 of this chapter.
For purposes of complying with such
requirements, the definitions in
§ 62.15902 and in § 72.2 of this chapter
shall apply, and the terms ‘‘affected
unit,’’ ‘‘designated representative,’’ and
‘‘continuous emission monitoring
system’’ (or ‘‘CEMS’’) in part 75 of this
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chapter shall be deemed to refer to the
terms ‘‘Hg Budget unit,’’ ‘‘Hg designated
representative,’’ and ‘‘continuous
emission monitoring system’’ (or
‘‘CEMS’’) respectively, as defined in
§ 62.15902. The owner or operator of a
unit that is not a Hg Budget unit but that
is monitored under § 75.82(b)(2)(i) of
this chapter shall comply with the same
monitoring, recordkeeping, and
reporting requirements as a Hg Budget
unit.
(a) Requirements for installation,
certification, and data accounting. The
owner or operator of each Hg Budget
unit shall:
(1) Install all monitoring systems
required under this section and
§§ 62.15971 through 62.15975 for
monitoring Hg mass emissions and
individual unit heat input (including all
systems required to monitor Hg
concentration, stack gas moisture
content, stack gas flow rate, and CO2 or
O2 concentration, as applicable, in
accordance with §§ 75.81 and 75.82 of
this chapter);
(2) Successfully complete all
certification tests required under
§ 62.15971 and meet all other
requirements of this section,
§§ 62.15971 through 62.15975, and
subpart I of part 75 of this chapter
applicable to the monitoring systems
under paragraph (a)(1) of this section;
and
(3) Record, report, and quality-assure
the data from the monitoring systems
under paragraph (a)(1) of this section.
(b) Compliance deadlines. Except as
provided in paragraph (e) of this
section, the owner or operator shall
meet the monitoring system certification
and other requirements of paragraphs
(a)(1) and (2) of this section on or before
the following dates. The owner or
operator shall record, report, and
quality-assure the data from the
monitoring systems under paragraph
(a)(1) of this section on and after the
following dates.
(1) For the owner or operator of a Hg
Budget unit that commences
commercial operation before July 1,
2008, by January 1, 2009.
(2) For the owner or operator of a Hg
Budget unit that commences
commercial operation on or after July 1,
2008, by the later of the following dates:
(i) January 1, 2009; or
(ii) 90 unit operating days or 180
calendar days, whichever occurs first,
after the date on which the unit
commences commercial operation.
(3) For the owner or operator of a Hg
Budget unit for which construction of a
new stack or flue or installation of addon Hg emission controls, a flue gas
desulfurization system, a selective
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catalytic reduction system, or a compact
hybrid particulate collector system is
completed after the applicable deadline
under paragraph (b)(1) or (2) of this
section, by 90 unit operating days or 180
calendar days, whichever occurs first,
after the date on which emissions first
exit to the atmosphere through the new
stack or flue, add-on Hg emissions
controls, flue gas desulfurization
system, selective catalytic reduction
system, or compact hybrid particulate
collector system.
(c) Reporting data. The owner or
operator of a Hg Budget unit that does
not meet the applicable compliance date
set forth in paragraph (b) of this section
for any monitoring system under
paragraph (a)(1) of this section shall, for
each such monitoring system,
determine, record, and report maximum
potential (or, as appropriate, minimum
potential) values for Hg concentration,
stack gas flow rate, stack gas moisture
content, and any other parameters
required to determine Hg mass
emissions and heat input in accordance
with § 75.80(g) of this chapter.
(d) Prohibitions.
(1) No owner or operator of a Hg
Budget unit shall use any alternative
monitoring system, alternative reference
method, or any other alternative to any
requirement of this section and
§§ 62.15971 through 62.15974 without
having obtained prior written approval
in accordance with § 62.15975.
(2) No owner or operator of a Hg
Budget unit shall operate the unit so as
to discharge, or allow to be discharged,
Hg emissions to the atmosphere without
accounting for all such emissions in
accordance with the applicable
provisions of this section, §§ 62.15971
through 62.15975, and subpart I of part
75 of this chapter.
(3) No owner or operator of a Hg
Budget unit shall disrupt the continuous
emission monitoring system, any
portion thereof, or any other approved
emission monitoring method, and
thereby avoid monitoring and recording
Hg mass emissions discharged into the
atmosphere or heat input, except for
periods of recertification or periods
when calibration, quality assurance
testing, or maintenance is performed in
accordance with the applicable
provisions of this section, §§ 62.15971
through 62.15975, and subpart I of part
75 of this chapter.
(4) No owner or operator of a Hg
Budget unit shall retire or permanently
discontinue use of the continuous
emission monitoring system, any
component thereof, or any other
approved monitoring system under this
section and §§ 62.15971 through
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62.15975, except under any one of the
following circumstances:
(i) During the period that the unit is
covered by an exemption under
§ 62.15905 that is in effect;
(ii) The owner or operator is
monitoring emissions from the unit with
another certified monitoring system
approved, in accordance with the
applicable provisions of this section,
§§ 62.15971 through 62.15975, and
subpart I of part 75 of this chapter, by
the Administrator for use at that unit
that provides emission data for the same
pollutant or parameter as the retired or
discontinued monitoring system; or
(iii) The Hg designated representative
submits notification of the date of
certification testing of a replacement
monitoring system for the retired or
discontinued monitoring system in
accordance with § 62.15971(c)(3)(i).
(e) Long-term cold storage. The owner
or operator of a Hg Budget unit is
subject to the applicable provisions of
part 75 of this chapter concerning units
in long-term cold storage.
§ 62.15971 Initial certification and
recertification procedures.
(a) The owner or operator of a Hg
Budget unit shall be exempt from the
initial certification requirements of this
section for a monitoring system under
§ 62.15970(a)(1) if the following
conditions are met:
(1) The monitoring system has been
previously certified in accordance with
part 75 of this chapter; and
(2) The applicable quality-assurance
and quality-control requirements of
§ 75.21 of this chapter and appendix B
to part 75 of this chapter are fully met
for the certified monitoring system
described in paragraph (a)(1) of this
section.
(b) The recertification provisions of
this section shall apply to a monitoring
system under § 62.15970(a)(1) exempt
from initial certification requirements
under paragraph (a) of this section.
(c) Except as provided in paragraph
(a) of this section, the owner or operator
of a Hg Budget unit shall comply with
the following initial certification and
recertification procedures for a
continuous monitoring system (i.e., a
continuous emission monitoring system
and an excepted monitoring system
(sorbent trap monitoring system) under
§ 75.15) under § 62.15970(a)(1). The
owner or operator of a unit that qualifies
to use the Hg low mass emissions
excepted monitoring methodology
under § 75.81(b) of this chapter or that
qualifies to use an alternative
monitoring system under subpart E of
part 75 of this chapter shall comply
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with the procedures in paragraph (d) or
(e) of this section respectively.
(1) Requirements for initial
certification. The owner or operator
shall ensure that each continuous
monitoring system under
§ 62.15970(a)(1) (including the
automated data acquisition and
handling system) successfully
completes all of the initial certification
testing required under § 75.20 of this
chapter by the applicable deadline in
§ 62.15970(b). In addition, whenever the
owner or operator installs a monitoring
system to meet the requirements of this
subpart in a location where no such
monitoring system was previously
installed, initial certification in
accordance with § 75.20 of this chapter
is required.
(2) Requirements for recertification.
Whenever the owner or operator makes
a replacement, modification, or change
in any certified continuous emission
monitoring system, or an excepted
monitoring system (sorbent trap
monitoring system) under § 75.15, under
§ 62.15970(a)(1) that may significantly
affect the ability of the system to
accurately measure or record Hg mass
emissions or heat input rate or to meet
the quality-assurance and qualitycontrol requirements of § 75.21 of this
chapter or appendix B to part 75 of this
chapter, the owner or operator shall
recertify the monitoring system in
accordance with § 75.20(b) of this
chapter. Furthermore, whenever the
owner or operator makes a replacement,
modification, or change to the flue gas
handling system or the unit’s operation
that may significantly change the stack
flow or concentration profile, the owner
or operator shall recertify each
continuous emission monitoring system,
and each excepted monitoring system
(sorbent trap monitoring system) under
§ 75.15, whose accuracy is potentially
affected by the change, in accordance
with § 75.20(b) of this chapter.
Examples of changes to a continuous
emission monitoring system that require
recertification include replacement of
the analyzer, complete replacement of
an existing continuous emission
monitoring system, or change in
location or orientation of the sampling
probe or site.
(3) Approval process for initial
certification and recertification.
Paragraphs (c)(3)(i) through (iv) of this
section apply to both initial certification
and recertification of a continuous
monitoring system under
§ 62.15970(a)(1). For recertifications,
replace the words ‘‘certification’’ and
‘‘initial certification’’ with the word
‘‘recertification’’, replace the word
‘‘certified’’ with the word ‘‘recertified’’,
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and follow the procedures in
§ 75.20(b)(5) of this chapter in lieu of
the procedures in paragraph (c)(3)(v) of
this section.
(i) Notification of certification. The Hg
designated representative shall submit
to the Administrator and the
appropriate EPA Regional Office written
notice of the dates of certification
testing, in accordance with § 62.15973.
(ii) Certification application. The Hg
designated representative shall submit
to the Administrator a certification
application for each monitoring system.
A complete certification application
shall include the information specified
in § 75.63 of this chapter.
(iii) Provisional certification date. The
provisional certification date for a
monitoring system shall be determined
in accordance with § 75.20(a)(3) of this
chapter. A provisionally certified
monitoring system may be used under
the Hg Budget Trading Program for a
period not to exceed 120 days after
receipt by the Administrator of the
complete certification application for
the monitoring system under paragraph
(c)(3)(ii) of this section. Data measured
and recorded by the provisionally
certified monitoring system, in
accordance with the requirements of
part 75 of this chapter, will be
considered valid quality-assured data
(retroactive to the date and time of
provisional certification), provided that
the Administrator does not invalidate
the provisional certification by issuing a
notice of disapproval within 120 days of
the date of receipt of the complete
certification application by the
Administrator.
(iv) Certification application approval
process. The Administrator will issue a
written notice of approval or
disapproval of the certification
application to the owner or operator
within 120 days of receipt of the
complete certification application under
paragraph (c)(3)(ii) of this section. In the
event the Administrator does not issue
such a notice within such 120-day
period, each monitoring system that
meets the applicable performance
requirements of part 75 of this chapter
and is included in the certification
application will be deemed certified for
use under the Hg Budget Trading
Program.
(A) Approval notice. If the
certification application is complete and
shows that each monitoring system
meets the applicable performance
requirements of part 75 of this chapter,
then the Administrator will issue a
written notice of approval of the
certification application within 120
days of receipt.
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(B) Incomplete application notice. If
the certification application is not
complete, then the Administrator will
issue a written notice of incompleteness
that sets a reasonable date by which the
Hg designated representative must
submit the additional information
required to complete the certification
application. If the Hg designated
representative does not comply with the
notice of incompleteness by the
specified date, then the Administrator
may issue a notice of disapproval under
paragraph (c)(3)(iv)(C) of this section.
The 120-day review period shall not
begin before receipt of a complete
certification application.
(C) Disapproval notice. If the
certification application shows that any
monitoring system does not meet the
performance requirements of part 75 of
this chapter or if the certification
application is incomplete and the
requirement for disapproval under
paragraph (c)(3)(iv)(B) of this section is
met, then the Administrator will issue a
written notice of disapproval of the
certification application. Upon issuance
of such notice of disapproval, the
provisional certification is invalidated
by the Administrator and the data
measured and recorded by each
uncertified monitoring system shall not
be considered valid quality-assured data
beginning with the date and hour of
provisional certification (as defined
under § 75.20(a)(3) of this chapter). The
owner or operator shall follow the
procedures for loss of certification in
paragraph (c)(3)(v) of this section for
each monitoring system that is
disapproved for initial certification.
(D) Audit decertification. The
Administrator may issue a notice of
disapproval of the certification status of
a monitor in accordance with
§ 62.15972(b).
(v) Procedures for loss of certification.
If the Administrator issues a notice of
disapproval of a certification
application under paragraph (c)(3)(iv)(C)
of this section or a notice of disapproval
of certification status under paragraph
(c)(3)(iv)(D) of this section, then:
(A) The owner or operator shall
substitute the following values, for each
disapproved monitoring system, for
each hour of unit operation during the
period of invalid data specified under
§ 75.20(a)(4)(iii) or § 75.21(e) of this
chapter and continuing until the
applicable date and hour specified
under § 75.20(a)(5)(i) of this chapter:
(1) For a disapproved Hg pollutant
concentration monitors and
disapproved flow monitor, respectively,
the maximum potential concentration of
Hg and the maximum potential flow
rate, as defined in sections 2.1.7.1 and
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2.1.4.1 of appendix A to part 75 of this
chapter.
(2) For a disapproved moisture
monitoring system and disapproved
diluent gas monitoring system,
respectively, the minimum potential
moisture percentage and either the
maximum potential CO2 concentration
or the minimum potential O2
concentration (as applicable), as defined
in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of
appendix A to part 75 of this chapter.
(3) For a disapproved excepted
monitoring system (sorbent trap
monitoring system) under § 75.15 and
disapproved flow monitor, respectively,
the maximum potential concentration of
Hg and maximum potential flow rate, as
defined in sections 2.1.7.1 and 2.1.4.1 of
appendix A to part 75 of this chapter.
(B) The Hg designated representative
shall submit a notification of
certification retest dates and a new
certification application in accordance
with paragraphs (c)(3)(i) and (ii) of this
section.
(C) The owner or operator shall repeat
all certification tests or other
requirements that were failed by the
monitoring system, as indicated in the
Administrator’s notice of disapproval,
no later than 30 unit operating days
after the date of issuance of the notice
of disapproval.
(d) Initial certification and
recertification procedures for units
using the Hg low mass emission
excepted methodology under § 75.81(b)
of this chapter. The owner or operator
of a unit qualified to use the Hg low
mass emissions (HgLME) excepted
methodology under § 75.81(b) of this
chapter shall meet the applicable
certification and recertification
requirements in § 75.81(c) through (f) of
this chapter.
(e) Certification/recertification
procedures for alternative monitoring
systems. The Hg designated
representative of each unit for which the
owner or operator intends to use an
alternative monitoring system approved
by the Administrator under subpart E of
part 75 of this chapter shall comply
with the applicable notification and
application procedures of § 75.20(f) of
this chapter.
§ 62.15972
Out of control periods.
(a) Whenever any monitoring system
fails to meet the quality-assurance and
quality-control requirements or data
validation requirements of part 75 of
this chapter, data shall be substituted
using the applicable missing data
procedures in subpart D of part 75 of
this chapter.
(b) Audit decertification. Whenever
both an audit of a monitoring system
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Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 / Proposed Rules
and a review of the initial certification
or recertification application reveal that
any monitoring system should not have
been certified or recertified because it
did not meet a particular performance
specification or other requirement under
§ 62.15971 or the applicable provisions
of part 75 of this chapter, both at the
time of the initial certification or
recertification application submission
and at the time of the audit, the
Administrator will issue a notice of
disapproval of the certification status of
such monitoring system. For the
purposes of this paragraph, an audit
shall be either a field audit or an audit
of any information submitted to the
permitting authority or the
Administrator. By issuing the notice of
disapproval, the Administrator revokes
prospectively the certification status of
the monitoring system. The data
measured and recorded by the
monitoring system shall not be
considered valid quality-assured data
from the date of issuance of the
notification of the revoked certification
status until the date and time that the
owner or operator completes
subsequently approved initial
certification or recertification tests for
the monitoring system. The owner or
operator shall follow the applicable
initial certification or recertification
procedures in § 62.15971 for each
disapproved monitoring system.
§ 62.15973
Notifications.
The Hg designated representative for
a Hg Budget unit shall submit written
notice to the Administrator in
accordance with § 75.61 of this chapter.
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§ 62.15974
Recordkeeping and reporting.
(a) General provisions. The Hg
designated representative shall comply
with all recordkeeping and reporting
requirements in this section, the
applicable recordkeeping and reporting
requirements of § 75.84 of this chapter,
and the requirements of
§ 62.15910(e)(1).
(b) Monitoring plans. The owner or
operator of a Hg Budget unit shall
comply with requirements of § 75.84(e)
of this chapter.
(c) Certification applications. The Hg
designated representative shall submit
an application to the Administrator
within 45 days after completing all
initial certification or recertification
tests required under § 62.15971,
including the information required
under § 75.63 of this chapter.
(d) Quarterly reports. The Hg
designated representative shall submit
quarterly reports, as follows:
(1) The Hg designated representative
shall report the Hg mass emissions data
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and heat input data for the Hg Budget
unit, in an electronic quarterly report in
a format prescribed by the
Administrator, for each calendar quarter
beginning with:
(i) For a unit that commences
commercial operation before July 1,
2008, the calendar quarter covering
January 1, 2009 through March 31, 2009;
or
(ii) For a unit that commences
commercial operation on or after July 1,
2008, the calendar quarter
corresponding to the earlier of the date
of provisional certification or the
applicable deadline for initial
certification under § 62.15970(b), unless
that quarter is the third or fourth quarter
of 2008, in which case reporting shall
commence in the quarter covering
January 1, 2009 through March 31, 2009.
(2) The Hg designated representative
shall submit each quarterly report to the
Administrator within 30 days following
the end of the calendar quarter covered
by the report. Quarterly reports shall be
submitted in the manner specified in
§ 75.84(f) of this chapter.
(3) For Hg Budget units that are also
subject to an Acid Rain emissions
limitation or the CAIR NOX Annual
Trading Program, CAIR SO2 Trading
Program, or CAIR NOX Ozone Season
Trading Program, quarterly reports shall
include the applicable data and
information required by subparts F
through H of part 75 of this chapter as
applicable, in addition to the Hg mass
emission data, heat input data, and
other information required by this
section, §§ 62.15970 through 62.15973,
and § 62.15975.
(e) Compliance certification. The Hg
designated representative shall submit
to the Administrator a compliance
certification (in a format prescribed by
the Administrator) in support of each
quarterly report based on reasonable
inquiry of those persons with primary
responsibility for ensuring that all of the
unit’s emissions are correctly and fully
monitored. The certification shall state
that:
(1) The monitoring data submitted
were recorded in accordance with the
applicable requirements by this section,
§§ 62.15970 through 62.15973,
§ 62.15975, and part 75 of this chapter,
including the quality assurance
procedures and specifications; and
(2) For a unit with add-on Hg
emission controls, a flue gas
desulfurization system, a selective
catalytic reduction system, or a compact
hybrid particulate collector system and
for all hours where Hg data are
substituted in accordance with
§ 75.34(a)(1) of this chapter,
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(i)(A) The Hg add-on emission
controls, flue gas desulfurization
system, selective catalytic reduction
system, or compact hybrid particulate
collector system were operating within
the range of parameters listed in the
quality assurance/quality control
program under appendix B to part 75 of
this chapter, or
(B) With regard to a flue gas
desulfurization system or a selective
catalytic reduction system, qualityassured SO2 emission data recorded in
accordance with part 75 of this chapter
document that the flue gas
desulfurization system was operating
properly or quality-assured NOX
emission data recorded in accordance
with part 75 of this chapter document
that the selective catalytic reduction
system was operating properly, as
applicable, and
(ii) The substitute data values do not
systematically underestimate Hg
emissions.
§ 62.15975
Petitions.
The Hg designated representative of a
Hg Budget unit may submit a petition
under § 75.66 of this chapter to the
Administrator requesting approval to
apply an alternative to any requirement
of §§ 62.15970 through 62.15974.
Application of an alternative to any
requirement of §§ 62.15970 through
62.15974 is in accordance with this
section and §§ 62.15970 through
62.15974 only to the extent that the
petition is approved in writing by the
Administrator, in consultation with the
permitting authority.
Appendix A to Subpart LLL of Part
62—States With Approved State
Allocation Methodology
The following States have a State
allocation methodology under
§ 52.24(h)(9) of this chapter approved by
the Administrator and providing for
allocation of Hg allowances by the
permitting authority under
§ 62.15943(a):
[Reserved]
PART 72—PERMITS REGULATION
33. The authority citation for part 72
continues to read as follows:
Authority: 42 U.S.C. 7601 and 7651, et seq.
§ 72.22
[Amended]
34. Section 72.22 is amended as
follows:
a. In paragraph (b), by revising the
words ‘‘an action, representation, or
failure to act’’ to read ‘‘a representation,
action, inaction, or submission’’; and
b. Removing paragraph (e).
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PART 78—APPEAL PROCEDURES
35. The authority citation for part 78
is revised to read as follows:
Authority: 42 U.S.C. 7401, 7403, 7410,
7411, 7426, 7601, and 7651, et seq.
36. Section 78.1 is amended as
follows:
a. In paragraph (a)(1), revising the
words ‘‘under part 72’’ to read ‘‘under
subpart HHHH of part 60 of this chapter
or State regulations approved under
§ 60.24(h)(6) of this chapter, subpart
LLL of part 62 of this chapter, parts 72’’;
and
b. Adding new paragraphs (b)(13) and
(b)(14) to read as follows:
§ 78.1
Purpose and scope.
*
*
*
*
(b) * * *
(13) Under subpart HHHH of part 60
of this chapter,
(i) The decision on the allocation of
Hg allowances under §§ 60.4140
through 60.4142 of this chapter.
(ii) The decision on the deduction of
Hg allowances, and the adjustment of
the information in a submission and the
decision on the deduction or transfer of
Hg allowances based on the information
as adjusted, under § 60.4154 of this
chapter;
(iii) The correction of an error in a Hg
Allowance Tracking System account
under § 60.4156 of this chapter;
(iv) The decision on the transfer of Hg
allowances under § 60.4161 of this
chapter;
(v) The finalization of control period
emissions data, including retroactive
adjustment based on audit;
(vi) The approval or disapproval of a
petition under § 60.4175 of this chapter.
(14) Under subpart LLL of part 62 of
this chapter,
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*
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(i) The decision on the allocation of
Hg allowances under §§ 62.15940
through 62.15942 of part 62 of this
chapter.
(ii) The decision on the deduction of
Hg allowances, and the adjustment of
the information in a submission and the
decision on the deduction or transfer of
Hg allowances based on the information
as adjusted, under § 62.15954 of this
chapter;
(iii) The correction of an error in a Hg
Allowance Tracking System account
under § 62.15956 of this chapter;
(iv) The decision on the transfer of Hg
allowances under § 62.15961;
(v) The finalization of control period
emissions data, including retroactive
adjustment based on audit;
(vi) The approval or disapproval of a
petition under § 62.15975 of this
chapter.
*
*
*
*
*
37. Section 78.3 is amended as
follows:
a. By adding new paragraphs (a)(10),
(a)(11), (d)(11), and (d)(12);
b. In paragraph (b)(3)(i), by adding the
words ‘‘or the Hg designated
representative or Hg authorized account
representative under paragraph (a)(10)
or (11) of this section (unless the Hg
designated representative or Hg
authorized account representative is the
petitioner) after the words ‘‘(unless the
CAIR designated representative or CAIR
authorized account representative is the
petitioner)’’;
c. In paragraph (d)(3), by adding the
words ‘‘or a certificate of representation
submitted by a Hg designated
representative or an application of a
general account submitted by a Hg
authorized account representative under
subpart HHHH of part 60 of this chapter
or subpart LLL of part 62 of this
chapter’’ after the words ‘‘subparts
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77147
AAAA through IIII of part 96 of this
chapter, or under part 97 of this
chapter’’:
§ 78.3 Petition for administrative review
and request for evidentiary hearing.
(a) * * *
(10) The following persons may
petition for administrative review of a
decision of the Administrator that is
made under subpart HHHH of part 60 of
this chapter and that is appealable
under § 78.1(a):
(i) The Hg designated representative
for a unit or source, or the Hg
authorized account representative for
any Hg Allowance Tracking System
account, covered by the decision; or
(ii) Any interested person.
(11) The following persons may
petition for administrative review of a
decision of the Administrator that is
made under subpart LLL of part 62 and
that is appealable under § 78.1(a):
(i) The Hg designated representative
for a unit or source, or the Hg
authorized account representative for
any Hg Allowance Tracking System
account, covered by the decision; or
(ii) Any interested person.
*
*
*
*
*
(d) * * *
(11) Any provision or requirement of
subpart HHHH of part 60 of this chapter,
including the standard requirements
under § 60.4106 of this chapter and any
emission monitoring or reporting
requirements.
(12) Any provision or requirement of
subpart LLL of part 62 of this chapter,
including the standard requirements
under § 97.206 of this chapter and any
emission monitoring or reporting
requirements.
[FR Doc. E6–21573 Filed 12–21–06; 8:45 am]
BILLING CODE 6560–50–P
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]]>Agencies
[Federal Register Volume 71, Number 246 (Friday, December 22, 2006)]
[Proposed Rules]
[Pages 77100-77147]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21573]
[[Page 77099]]
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Part II
Environmental Protection Agency
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40 CFR Parts 60, 62, 72, and 78
Revisions of Standards of Performance for New and Existing Stationary
Sources; Electric Utility Steam Generating Units; Federal Plan
Requirements for Clean Air Mercury Rule; and Revisions of Acid Rain
Program Rules; Proposed Rule
Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 /
Proposed Rules
[[Page 77100]]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 60, 62, 72, and 78
[EPA-HQ-OAR-2006-0905; FRL-8255-1]
RIN 2060-AN98
Revisions of Standards of Performance for New and Existing
Stationary Sources; Electric Utility Steam Generating Units; Federal
Plan Requirements for Clean Air Mercury Rule; and Revisions of Acid
Rain Program Rules
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this action, EPA proposes a Federal Plan to implement Clean
Air Act (CAA) section 111 mercury (Hg) standards of performance for new
and existing coal-fired electric utility steam generating units
(Utility Unit or EGU) located in States or Indian Country covered by
the Clean Air Mercury Rule (CAMR) which do not have EPA approved and
currently effective State plans. The EPA will not take final action on
the proposed Federal Plan until EPA either finds that a State has
failed to timely submit a plan or disapproves a submitted plan. Any
final Federal Plan is expected to serve primarily to temporarily fill a
regulatory gap in circumstances where either a State fails to timely
submit a plan or EPA disapproves a submitted plan as, in either case,
States will be free to submit an approvable plan after promulgation of
the Federal Plan and upon approval of the State Plan by EPA, the
Federal Plan will no longer apply to coal-fired Utility Units covered
by the State Plan.
This action also proposes certain revisions to both the CAMR State
Plan model cap-and-trade rule (in order to make it compatible with the
Federal Plan cap-and-trade rule and to make technical corrections) and
the Acid Rain Program regulations (in order to simplify the provision
concerning alternate designated representatives and to make the
administrative appeals process applicable to the decisions of the
Administrator under the State Plan and Federal Plan cap-and-trade
rules).
DATES: Comments. Comments on this proposal must be received on or
before February 20, 2007. A public hearing will be held in Washington,
DC prior to the end of the public comment period. EPA will publish a
separate Federal Register notice announcing the date, location, and
time for the public hearing. Please refer to SUPPLEMENTARY INFORMATION
for additional information on the public hearing.
ADDRESSES: Submit your comments, identified by Docket ID Number EPA-HQ-
OAR-2006-0905, by one of the following methods:
A. Federal Rulemaking Portal: https://www.regulations.gov. Follow
the on-line instructions for submitting comments.
B. E-mail: A-AND-R-Docket@epa.gov.
C. Mail: Air Docket, ATTN: Docket Number EPA-HQ-OAR-2006-0905,
Environmental Protection Agency, Mail Code: 6102T, 1200 Pennsylvania
Ave., NW., Washington, DC 20460.
D. Hand Delivery: EPA Docket Center, 1301 Constitution Avenue, NW.,
Room 3334, Washington, DC. Such deliveries are only accepted during the
Docket's normal hours of operation, and special arrangements should be
made for deliveries of boxed information.
Instructions: Direct your comments to Docket ID No. EPA Docket
Number EPA-HQ-OAR-2006-0905. EPA's policy is that all comments received
will be included in the public docket without change and may be made
available online at https://www.regulations.gov, including any personal
information provided, unless the comment includes information claimed
to be Confidential Business Information (CBI) or other information
whose disclosure is restricted by statute. Do not submit information
that you consider to be CBI or otherwise protected through
www.regulations.gov or e-mail. The www.regulations.gov Web site is an
``anonymous access'' system, which means EPA will not know your
identity or contact information unless you provide it in the body of
your comment. If you send an e-mail comment directly to EPA without
going through www.regulations.gov your e-mail address will be
automatically captured and included as part of the comment that is
placed in the public docket and made available on the Internet. If you
submit an electronic comment, EPA recommends that you include your name
and other contact information in the body of your comment and with any
disk or CD-ROM you submit. If EPA cannot read your comment due to
technical difficulties and cannot contact you for clarification, EPA
may not be able to consider your comment. Electronic files should avoid
the use of special characters, any form of encryption, and be free of
any defects or viruses.
Docket: All documents in the docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, i.e., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, is not placed on the Internet and will be
publicly available only in hard copy form. Publicly available docket
materials are available either electronically in www.regulations.gov or
in hard copy at the EPA Docket Center, EPA West, Room 3334, 1301
Constitution Avenue, NW., Washington, DC. The Public Reading Room is
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Public Reading Room is
(202) 566-1744, and the telephone number for the Air Docket is (202)
566-1742.
FOR FURTHER INFORMATION CONTACT: For information concerning this
proposed CAMR Federal Plan as well as Integrated Planning Model (IPM)
analyses performed in developing the final CAMR, contact Meg Victor,
Program Development Branch, Clean Air Markets Division (MC 6204J), EPA,
Washington, DC 20460; telephone number (202) 343-9193; fax number (202)
343-2359; electronic mail address: victor.meg@epa.gov.
For information concerning all other analyses performed in
developing the final CAMR, contact Mr. William Maxwell, Energy
Strategies Group, Sector Policies and Programs Division (Mail Code
D243-01), EPA, Research Triangle Park, North Carolina 27711; telephone
number (919) 541-5430; fax number (919) 541-5450; electronic mail
address: maxwell.bill@epa.gov.
SUPPLEMENTARY INFORMATION:
Regulated Entities. Categories and entities potentially regulated
by this action include the following:
------------------------------------------------------------------------
NAICS code Examples of potentially
Category \1\ regulated entities
------------------------------------------------------------------------
Industry......................... 221112 Fossil fuel-fired
electric utility steam
generating units.
Federal Government............... \2\ 221122 Fossil fuel-fired
electric utility steam
generating units owned
by the Federal
government.
State/local/Tribal government.... \2\ 221122 Fossil fuel-fired
electric utility steam
generating units owned
by municipalities.
[[Page 77101]]
921150 Fossil fuel-fired
electric utility steam
generating units in
Indian country.
------------------------------------------------------------------------
\1\ North American Industry Classification System.
\2\ 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 be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists examples of the types of entities EPA is now
aware could potentially be regulated by this action. Other types of
entities not listed could also be affected. To determine whether your
facility, company, business, organization, etc., is regulated by this
action, you should examine the applicability criteria in 40 CFR 60.45Da
of the final new source performance standards (NSPS) amendments and 40
CFR 60.24(h) of the final CAMR. If you have questions regarding the
applicability of this action to a particular entity, consult your State
or local agency (or EPA Regional Office).
World Wide Web. In addition to being available in the docket, an
electronic copy of this action will also be available on the World Wide
Web through EPA's Office of Air and Radiation. Following signature by
the Administrator, a copy of this action will be posted on the CAMR
page at https://www.epa.gov/camr.
Public Hearing. A public hearing will be held in Washington, DC
prior to the end of the public comment period. EPA will publish a
future Federal Register notice announcing the details of the public
hearing including the time, date, and location, and will announce the
public hearing on EPA's Web site for this rulemaking at https://
www.epa.gov/CAMR.
Because the hearing will be held at a U.S. Government facility,
everyone planning to attend should be prepared to show valid picture
identification to the security staff in order to gain access to the
meeting room. Oral testimony will be limited to 5 minutes per
commenter. The EPA encourages commenters to provide written versions of
their oral testimonies either electronically (on computer disk or CD-
ROM) or in paper copy. Verbatim transcripts and written statements will
be included in the rulemaking docket.
The public hearing will provide interested parties the opportunity
to present data, views, or arguments concerning the proposed rule. The
EPA may ask clarifying questions during the oral presentations, but
will not respond to the presentations or comments at that time. Written
statements and supporting information submitted during the comment
period will be considered with the same weight as any oral comments and
supporting information presented at a public hearing.
Outline. The information presented in this preamble is organized as
follows:
I. Background
A. Summary of This Action
B. Regulatory Background of CAMR
C. State Plan Requirements
II. Federal Plan Process
A. Legal Authority for Federal Plan
B. Implementation of Federal Plan
C. Timing of Federal Plan Action
D. Federal Plan Control Measures
E. National Mercury Budget and Compliance Dates
F. State and Indian Country Emission Budgets
III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg Cap-and-Trade Program
B. Sources Affected Under the Federal Cap-and-Trade Rule
C. Allocation of Emission Allowances
D. Allowance Banking
E. Source-Level Emissions Monitoring and Reporting Requirements
F. Compliance and Penalties
G. Elements of the Federal Hg Trading Program That Differ From
the State Model Hg Trading Program
IV. Proposed Revisions of the CAMR State Model Cap-and-Trade Program
Rule
V. Proposed Revisions of the Acid Rain Program Regulations
VI. Units Subject to the CAMR Federal Plan and New Source
Performance Standards
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health and Safety Risks
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
I. Background
A. Summary of This Action
On May 18, 2005, EPA finalized CAMR and established standards of
performance for Hg for new and existing coal-fired electric utility
steam generating units (Utility Units or EGUs). (The standards of
performance for existing Utility Units are in the form of emission
guidelines which do not apply to individual sources until they are
implemented through an EPA approved State plan or a promulgated Federal
plan.) (See 70 FR 28606.) CAMR established a mechanism by which Hg
emissions from new and existing coal-fired Utility Units are capped at
specified, nation-wide levels. A first phase cap of 38 tpy becomes
effective in 2010, and a second phase cap of 15 tpy becomes effective
in 2018. EPA then set State level emission caps that States must meet
and developed an emissions cap-and-trade program States can use to meet
these caps. State plans to implement and enforce these standards of
performance were due to EPA by November 17, 2006.\1\ Under 40 CFR
60.27(b), the Administrator must approve or disapprove State Plans
within 4 months of the November 17, 2006 submission deadline.
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\1\ In a separate Federal Register notice entitled ``Notice of
Finding that Certain States Did Not Submit Clean Air Mercury Rule
(CAMR) State Plans for New and Existing Electric Utility Steam
Generating Units and Status of Submission of Such Plans,'' EPA made
findings that certain States did not submit CAMR State Plans by the
November 17, 2006 deadline and otherwise provided notice of the
status of State Plan submissions.
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CAA section 111 requires States, and CAA section 301(d) and the
Tribal Air Rule, 40 CFR part 49, allow Tribes granted treatment as
States (TAS), with existing coal-fired Utility Units to submit plans to
EPA that implement and enforce the standards of performance. The CAMR
itself requires States to submit a plan for addressing Hg emissions
from new Utility Units even if there are no existing Utility Units in
the State.
CAA section 111(d)(2) grants the Administrator the same authority
to prescribe a plan for a State in cases where the State fails to
submit a satisfactory plan as he would have under section 110(c) of the
CAA in the case of a State's failure to submit an
[[Page 77102]]
implementation plan. Section 60.27 of 40 CFR part 60 directs the
Administrator to promptly prepare and publish proposed regulations for
a State if the State fails to submit a plan by the prescribed deadline
or the Administrator disapproves the State's submitted plan and to
promulgate those regulations by the date 6 months after the date
required for plan submission. Thus, if a State didn't submit a plan by
November 17, 2006, EPA is required to promulgate a Federal Plan no
later than 6 months after the deadline, unless, prior to such
promulgation, the State submits a plan that the Administrator
determines to be approvable. In this action, EPA proposes a Federal
Plan to implement standards of performance for Utility Units located in
all States, the District of Columbia, and Indian Country covered by
CAMR (see 40 CFR 60.24(h)(1) listing the jurisdictions covered by CAMR)
for which a plan was not submitted by November 17, 2006.\2\ In
addition, with regard to jurisdictions that submitted plans by November
17, 2006, EPA proposes to adopt a Federal Plan, as set forth in today's
notice, in the event that EPA reviews the submitted plan and determines
that the plan does not meet the requirements of CAMR. The EPA believes
that it is appropriate to propose now the Federal Plan that would apply
to each jurisdiction without an approvable plan, whether or not the
jurisdiction involved submitted a plan by November 17, 2006. In all of
these potential circumstances, the Agency would be hard pressed to both
propose and promulgate a Federal Plan of this magnitude in a six-month
time period and so must begin the process now by proposing the Federal
Plan that would apply if the Agency determines that the jurisdiction
does not have an approvable plan. Because in today's action EPA is
proposing the Federal Plan that would apply to any jurisdiction that
the Agency determines not to have an approvable plan, the Agency
requests that all persons with concerns about or comments on the
proposed Federal Plan submit comments in response to today's notice,
whether such concerns or comments involve sources in jurisdictions that
submitted plans by November 17, 2006 or jurisdictions that did not
submit plans by that deadline. Today's action provides the opportunity
for public comment on the Federal Plan that the Agency proposes to use
for any jurisdiction for which the Agency may promulgate a Federal Plan
under 40 CFR 60.27 because of the absence of a plan meeting the
requirements of CAMR. The EPA will not take final action on the
proposed Federal Plan for any specific jurisdiction until EPA either
finds that a plan has not been timely filed or disapproves a submitted
plan. (See also ``Notice of Finding that Certain States Did Not Submit
Clean Air Mercury Rule (CAMR) State Plans for New and Existing Electric
Utility Steam Generating Units and Status of Submission of Such
Plans.'')
---------------------------------------------------------------------------
\2\ Under the TAR (40 CFR part 49), which implements CAA section
301(d), Tribes may elect to be treated in the same manner as a State
in implementing sections of the CAA. However, EPA determined in the
TAR that it was inappropriate to treat Tribes in a manner similar to
a State with regard to specific plan submittal and implementation
deadlines.
---------------------------------------------------------------------------
B. Regulatory Background of CAMR
1. Relevant Federal Register Actions
On December 20, 2000, EPA issued a finding pursuant to CAA section
112(n)(1)(A) that it was appropriate and necessary to regulate coal-
and oil-fired Utility Units under CAA section 112. In making this
finding, EPA considered the results of the study mandated by CAA
section 112(n)(1)(A) (the Utility Study), which was completed and
submitted to Congress in February 1998.
In December 2000, EPA concluded that the positive appropriate and
necessary determination under CAA section 112(n)(1)(A) constituted a
decision to list coal- and oil-fired Utility Units on the CAA section
112(c) source category list. Relying on CAA section 112(e)(4), EPA
explained in its December 2000 finding that neither the appropriate and
necessary finding under CAA section 112(n)(1)(A) nor the associated
listing were subject to judicial review at that time. EPA did not add
natural-gas fired units to the CAA section 112(c) list in December
2000, because it did not make a positive appropriate and necessary
finding for such units.
On January 30, 2004, EPA published in the Federal Register a notice
of proposed rulemaking (NPR) entitled ``Proposed National Emissions
Standards for Hazardous Air Pollutants; and, in the Alternative,
Proposed Standards of Performance for New and Existing Stationary
Sources: Electric Utility Steam Generating Units.'' (See 69 FR 4652.)
In that NPR, EPA proposed three alternative regulatory approaches.
First, EPA proposed to retain the December 2000 Finding and associated
listing of coal- and oil-fired Utility Units and to issue maximum
achievable control technology-based (MACT) national emission standards
for hazardous air pollutants (NESHAP) for such units under CAA section
112. Second, EPA alternatively proposed revising the Agency's December
2000 Finding, removing coal- and oil-fired Utility Units from the CAA
section 112(c) list,\3\ and issuing final standards of performance
under CAA section 111 using emissions cap-and-trade for new and
existing coal-fired units that emit Hg and new and existing oil-fired
units that emit nickel (Ni). Finally, as a third possible alternative,
EPA took comment on retaining the December 2000 finding and regulating
Hg emissions from Utility Units under CAA section 112(n)(1)(A) using a
cap-and-trade approach.
---------------------------------------------------------------------------
\3\ We did not propose revising the December 2000 finding for
gas-fired Utility Units because EPA continues to believe that
regulation of such units under CAA section 112 is not appropriate
and necessary. We, therefore, take no action today with regard to
gas-fired Utility Units.
---------------------------------------------------------------------------
On March 16, 2004, EPA published in the Federal Register a
supplemental notice of proposed rulemaking (SNPR) entitled
``Supplemental Notice for the Proposed National Emission Standards for
Hazardous Air Pollutants; and, in the Alternative, Proposed Standards
of Performance for New and Existing Stationary Sources: Electric
Utility Steam Generating Units.'' (See 69 FR 12398.) In the SNPR, EPA
proposed certain additional regulatory text that largely addressed the
proposed CAA section 111 standards of performance for Hg, which
included a cap-and-trade program. The SNPR also proposed State Plan
approvability criteria and a model cap-and-trade rule for Hg emissions
from coal-fired Utility Units.
On December 1, 2004, EPA published in the Federal Register a notice
of data availability (NODA) entitled ``Proposed National Emission
Standards for Hazardous Air Pollutants; and, in the Alternative,
Proposed Standards of Performance for New and Existing Stationary
Sources, Electric Utility Steam Generating Units: Notice of Data
Availability.'' (See 69 FR 69864.) EPA issued this NODA: (1) To seek
additional input on certain new data and information concerning Hg that
the Agency received in response to the January 30, 2004 NPR and March
16, 2004 SNPR; and (2) to seek input on a revised proposed benefits
methodology for assessing the benefits of regulating Hg.
On March 29, 2005 (70 FR 15994), EPA revised the December 2000
appropriate and necessary finding and concluded that it is not
appropriate and necessary to regulate coal- and oil-fired Utility Units
under CAA section 112. We took this action because we now believe that
the December 2000 finding lacked foundation and because recent
information demonstrates that it is not
[[Page 77103]]
appropriate or necessary to regulate coal- and oil-fired Utility Units
under CAA section 112. Based solely on the revised finding, we removed
coal- and oil-fired Utility Units from the CAA section 112(c) list and
instead established standards of performance for Hg for new and
existing coal-fired Utility Units under CAA section 111 on May 18, 2005
(70 FR 28606). The regulations promulgated pursuant to EPA's authority
under CAA section 111 established a mechanism by which Hg emissions
from new and existing coal-fired Utility Units are capped at specified,
nation-wide levels. A first phase cap of 38 tons per year becomes
effective in 2010, and a second phase cap of 15 tons per year becomes
effective in 2018. The final CAMR included State Plan approvability
criteria and a model cap-and-trade rule for Hg emissions from coal-
fired Utility Units.
2. CAA Section 111 Authority
CAA section 111 creates a program for the establishment of
``standards of performance.'' A ``standard of performance'' is ``a
standard for emissions of air pollutants which reflects the degree of
emission limitation achievable through the application of the best
system of emission reduction, which (taking into account the cost of
achieving such reduction, any non-air quality health and environmental
impacts and energy requirements), the Administrator determines has been
adequately demonstrated.'' (42 U.S.C. 7411(a)(1).)
For new sources, EPA must first establish a list of stationary
source categories, which the Administrator has determined ``causes, or
contributes significantly to, air pollution which may reasonably be
anticipated to endanger public health or welfare.'' (42 U.S.C.
7410(b)(1)(A).) EPA must then set Federal standards of performance for
new sources within each listed source category. (42 U.S.C.
7411(b)(1)(B).) The standards for new sources under CAA section 111(b)
apply nationally and are applicable to sources on which construction,
reconstruction or modification is commenced after the date of proposal
of the standards. (See id.)
Existing sources are addressed under CAA section 111(d). EPA must
issue a standard of performance for existing sources in a source
category for a pollutant if it has established a standard of
performance for new sources covering an air pollutant for which air
quality criteria have not been issued or which is not included on a
list published under CAA section 108(a), even where those pollutants
are subject to the standard for new sources. (See 42 U.S.C.
7411(d)(1)). CAA section 111(d) authorizes EPA to promulgate standards
of performance that States must adopt through a SIP-like process, which
requires State rulemaking action followed by review and approval of
State Plans by EPA. If a State fails to submit a satisfactory plan, EPA
has the authority to prescribe a plan for the State. (See 42 U.S.C.
7411(d)(2)(A).)
The final CAMR (70 FR 28606; May 18, 2005) discusses in more detail
(i) The applicable standards of performance for Hg from new coal-fired
Utility Units under CAA section 111(b), (ii) the legal authority under
CAA section 111(d) to regulate Hg from existing coal-fired Utility
Units, and (iii) the legal authority to implement a cap-and-trade
program for existing and new Utility Units.
C. State Plan Requirements
1. Summary of State Plan Requirements
As finalized under CAMR (70 FR 28632), each State is required to
submit a State Plan that assures compliance with the State's assigned
Statewide Hg emission budget for coal-fired Utility Units. CAMR is
described here primarily for the convenience of the reader, and EPA is
only requesting comments on CAMR with regard to revisions to the CAMR
State model trading rule that are proposed in this notice. See Section
IV of this preamble. Because the State must meet a coal-fired EGU Hg
emission budget, all emission reductions must necessarily come from
coal-fired Utility Units. Each State Plan should include fully-adopted
State rules for the EGU Hg reduction strategy with compliance dates
providing for controls by 2010 and 2018 that will achieve the State EGU
Hg emissions budgets. The State Plans were due by November 17, 2006. As
a required element of a State Plan, a State must demonstrate that it
has the legal authority to adopt and implement the emission
requirements and compliance schedules in the State Plan. The State also
must identify the enforceable State mechanism for implementing the
emission guidelines (e.g., a State rule or other State enforcement
mechanism). Following receipt of a State Plan, EPA has up to 4 months
to approve or disapprove the plan. (See 40 CFR 60.27(b).)
The emission reduction requirement in CAMR applies to all coal-
fired Utility Units located in all 50 States of the U.S., the District
of Columbia, as well as those located in Indian country. (As used
herein, the term ``Indian country'' generally refers to all areas
within Indian reservations, dependent Indian communities, and Indian
allotments.) CAMR includes mercury emission budgets for coal-fired
Utility Units located in Indian country; the emission budgets cover
both existing and new units. EPA generally will implement the emission
trading rule for coal-fired Utility Units located in Indian country
unless a Tribe seeks and obtains Treatment-as-a-State (TAS) status and
submits a Tribal Plan to implement the allocated Hg emissions budget.
Eligible Tribes which choose to do so will be responsible for
submitting a Tribal Plan analogous to the State Plans discussed
throughout this preamble, and, like States, can choose to adopt the
model trading rule.
2. Performance Standard Approvability Criteria
As discussed in CAMR (70 FR 28616), CAA sections 111(a) and (d)(1)
authorize EPA to promulgate a ``standard of performance'' that States
must apply to existing EGU sources through a State Plan, and EPA
interpreted the term ``standard of performance,'' as applied to
existing EGU sources, to include a cap-and-trade program.
The State EGU Hg budgets are not an independently enforceable
requirement. Rather, each State must impose control requirements that
the State demonstrates will limit Statewide Hg emissions from affected
new and existing EGU sources to no more than the amount of the EGU Hg
budget. Under CAMR, EPA finalized that States may meet their Statewide
EGU Hg emission budgets by allowing their EGU sources to participate in
a national cap-and-trade program. That is, a State may authorize its
affected EGU sources to buy and sell Hg allowances allocated in or
outside of the State, so that any difference between the State's EGU Hg
budget and the total amount of Statewide EGU Hg emissions will be
offset in another State (or other States). Regardless of State
participation in the national cap-and-trade program, EPA believes that
the best way to assure this emission limitation is for the State to
limit total EGU Hg emissions for new and existing units in the State to
the amount of the State EGU Hg budget. In addition, EPA finalized that
sources will be required to comply with the 40 CFR part 75
requirements. EPA believes that compliance with these requirements is
necessary to demonstrate compliance with a mass emissions limit.
[[Page 77104]]
II. Federal Plan Process
A. Legal Authority for Federal Plan
CAA section 111(d) and 40 CFR 60.24(h) require States to develop
and implement State Plans for coal-fired Utility Units designed to
implement and enforce the promulgated Hg emission guidelines. The State
Plans were due by November 17, 2006. Following receipt of a State Plan,
EPA has up to 4 months to approve or disapprove the plan. (CAA section
111(d)(2)(A) provides EPA the same authority to prescribe a plan for a
State in cases where the State fails to submit a satisfactory plan as
the Agency would have under CAA section 110(c) in the case of a failure
to submit an implementation plan.)
EPA is proposing a CAMR Federal Plan that will fulfill the Agency's
obligation under the CAA to establish emission limits and other
requirements for coal-fired Utility Units located in States that have
not timely submitted approvable plans or for which EPA has disapproved
a submitted plan. EPA is proposing the Federal Plan under the legal
authority of CAA sections 111(d)(2) and 301(a). The Federal Plan is
intended, upon promulgation, to implement the emission guidelines
adopted as part of CAMR. Any final Federal Plan is expected to serve
primarily to temporarily fill a regulatory gap in circumstances where
either a State fails to timely submit a plan or EPA disapproves a
submitted plan as, in either case, States will be free to submit an
approvable plan after promulgation of the Federal Plan and upon
approval of the State Plan by EPA, the Federal Plan will no longer
apply to coal-fired Utility Units covered by the State Plan.
B. Implementation of Federal Plan
Congress has determined that the primary responsibility for air
pollution control rests with State and local agencies. See 42 U.S.C.
1401(a)(3). It is also intended under CAA section 111 that the States
take the primary responsibility for ensuring that emission reduction
targets are met. (See, 42 U.S.C. 7411(d)(1).) Accordingly, EPA has
designed the proposed CAMR Federal Plan to readily facilitate the
transfer of authority for implementing and enforcing the emission
guidelines from EPA to State and local agencies. For this action, EPA
is identifying two mechanisms for transferring implementation
responsibility to State and local agencies: (1) If EPA approves a State
Plan submitted to EPA after the Federal Plan is promulgated and is
effective in that State, the approved State Plan will supersede the
Federal Plan. (In approving the State Plan, EPA may impose conditions
it determines necessary to ensure that the transition from the Federal
Plan to the approved State Plan will be minimally disruptive.); or (2)
if EPA approves a State allocation methodology that addresses only
allowance allocations and meets certain requirements for such
allocations, EPA would implement the Federal Plan except for the
allocation provisions that the State would implement under the approved
State allocation methodology.\4\
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\4\ The proposed option for States to implement allowance
allocations under a CAMR Federal Plan is similar to the option with
respect to Clean Air Interstate Rule (CAIR) implementation wherein a
State can submit an abbreviated CAIR SIP revision to make
implementation decisions about certain elements of the CAIR FIP
trading programs (71 FR 25345). The proposed CAMR option is limited
to allowance allocations.
---------------------------------------------------------------------------
1. State Submits a State Plan After Becoming Subject to the Federal
Plan--Full Transfer of Authority Through State Plan Approval
Even after coal-fired Utility Units in a particular State become
subject to the Federal Plan, the State or a local agency may still
adopt and submit to EPA for approval a State Plan. The EPA will
determine if the State Plan is at least as protective as the CAMR
emission guidelines. If EPA determines that the State Plan is at least
as protective as the emission guidelines, EPA will approve the State
Plan. Upon the approval and effectiveness of the State Plan, the
Federal Plan will no longer apply and the State will implement and
enforce the State Plan in lieu of the Federal Plan. Making the State
Plan effective as soon as possible after approval expedites a State's
assumption of responsibility for implementing the CAMR emission
guidelines through the State Plan mechanism as intended by Congress.
(EPA recognizes, however, that there may be circumstances in which it
will be necessary to delay the effective date of an approved State
Plan, or impose other conditions in approving the State Plan, in order
to minimize the impacts of any disruption resulting from the transition
from the Federal Plan to an approved State Plan.) If EPA determines
that the State Plan is not at least as protective as the guidelines,
EPA cannot approve the State Plan.
2. State Implements Allowance Allocations Under the Federal Plan
The State may implement allowance allocations even if there is not
a State Plan in effect. EPA believes that, to the extent authorized by
State law, States may want to undertake implementation of Hg
allocations under a Federal Plan cap-and-trade program. A State could
choose to submit a State allocation methodology, rather than submitting
a State Plan addressing all elements of the Hg model trading rule (see
Section III.C of this preamble for discussion of allocations). In this
way, the State could choose to allocate Hg allowances to its EGU
sources as it deems most appropriate, while leaving other elements of
CAMR implementation to the Federal Plan.
C. Timing of Federal Plan Action
As described in CAMR and summarized in section I.C of this notice,
EPA required States to develop, adopt and submit their State Plans by
November 17, 2006. Proposing a CAMR Federal Plan today is necessary in
order for EPA to promulgate a Federal Plan in accordance with 40 CFR
60.27 for States without timely submitted, approvable plans. EPA
intends to expedite the Federal Plan promulgation to help assure
emission reductions occur expeditiously.
In a separate Federal Register notice entitled ``Notice of Finding
that Certain States Did Not Submit Clean Air Mercury Rule (CAMR) State
Plans for New and Existing Electric Utility Steam Generating Units and
Status of Submission of Such Plans,'' EPA made findings that certain
States did not submit CAMR State Plans by the November 17, 2006
deadline and otherwise provided notice of the status of State Plan
submissions. EPA intends to promulgate a Federal Plan for any State
that fails to timely submit an approvable plan. EPA intends to approve
expeditiously State Plans that meet the CAMR requirements. In order to
meet the requirements of CAA section 111(d), this notice proposes a
Federal Plan for all States covered by CAMR (50 States, District of
Columbia, and Indian country). The proposed Federal Plan requirements
for each State are identical. Final rulemaking on the proposed Federal
Plan may address only one State or may address several States,
depending on how the individual States respond to the provisions of the
final CAMR.
The Agency is proposing this action to provide a Federal backstop
for CAMR in circumstances where not all States submit timely,
approvable State Plans. In no way should the proposed Federal Plan for
CAMR be viewed as a sign of any concern about States ultimately making
the emission reductions required under CAMR. Rather, the Agency intends
the Federal Plan to represent an additional option for achieving the
emission reductions specified in CAMR. States which would otherwise
adopt the model trading
[[Page 77105]]
program in CAMR as their State Plan can accept the Federal Plan and
significantly reduce the State resources needed to establish a program
to implement CAMR.
The Agency proposes to provide States that are subject to these
proposed Federal requirements with the option to submit a State
allocation methodology without submitting a State Plan to meet the
requirements of CAMR. By proposing to accept a State allocation
methodology, the Agency intends to increase the options available for
States to comply with CAMR. As there are no sanctions associated with
the proposed Federal Plan, EPA anticipates that some States may prefer
to avoid spending the time and resources necessary to adopt and submit
a State Plan. Upon approval of any State allocation methodology, EPA
anticipates that the corresponding portions of the CAMR Federal Plan
for that State would be replaced or their application to affected
sources would be modified.
In offering a framework for submission of a State allocation
methodology, the Agency anticipates that some States will wish to
retain control over the allocation of allowances to their EGU sources
even in circumstances where the Federal Plan otherwise governs. EPA
requests comment on the proposed option for States to submit a State
allocation methodology under the Federal Plan trading program. A more
complete discussion of the proposed State allocation methodology
provisions is found in Section III, below.
Although the deadline for States to develop, adopt, and submit
State Plans that meet the requirements of CAMR was November 17, 2006,
EPA remains ready to work with the States to develop fully-approvable
State Plans. The Federal Plan will only be effective in a State where
EPA has found that a State has not timely submitted an approvable State
Plan. In addition, EPA will withdraw the Federal Plan for any affected
State after EPA approves a State Plan that meets the CAMR requirements
in that State.
EPA's goal is to have approvable programs in place that meet the
requirements of CAMR whether they are in the form of a State Plan or a
Federal Plan. By finalizing a Federal Plan, EPA would in no way
preclude a State from developing its own State Plan that either adopts
the Hg model trading rule with any discretionary elements allowed by
CAMR or meets the State's EGU Hg emissions budget through different
measures of the State's choosing. EPA will carefully consider the
timing of the Federal Plan adoption process, and the transition from a
finalized Federal Plan to an approved State Plan, to make sure to
preserve each State's freedom to develop and implement a State Plan. In
this way, EPA will enhance each State's options for complying with the
requirements of CAMR while ensuring that all the Hg emissions
reductions and environmental benefits of CAMR are realized.
D. Federal Plan Control Measures
In contrast to the State Plan process--where selection and
implementation of control measures is the primary responsibility of the
State--in the case of a Federal Plan, it is EPA's responsibility to
select the Hg control measures for each coal-fired EGU and assure
compliance with those measures. (See, 40 CFR 60.27(e).) Thus, the
Federal Plan would be designed by EPA to achieve the same total
Statewide EGU Hg emission budgets as those described in CAMR and
discussed below. The specific emission reductions assigned in the
Federal Plan could be different from what a State might choose. In
selecting the specific Hg emission reductions for the CAMR Federal
Plan, EPA is proposing to adopt as the Federal Plan the CAMR State
model cap-and-trade program rule, modified slightly to allow for
Federal instead of State implementation.
EPA believes it is essential that compliance with the Hg control
strategy be verified. Tracking emissions is the principal mechanism to
ensure compliance with the Hg emissions budget. The Hg emissions
control requirements for coal-fired Utility Units proposed in the CAMR
Federal Plan include requirements that the affected EGU sources
directly report emissions data to EPA that can be used to determine
compliance with the Hg emissions decreases required by the proposed
Federal Plan. The specifics of the Hg cap-and-trade program for the
Federal Plan are discussed below in Section III. The Federal Plan
includes the proposed methodology for allocating Hg allowances that EPA
would use to allocate allowances to units but does not include the
allocations themselves. EPA will provide the allocations for individual
units in later regulatory actions; the allocations will meet the State
Hg budgets that are established in CAMR for coal-fired Utility Units.
E. National Mercury Budget and Compliance Dates
In this action, the Agency is proposing a Federally-administered
program to meet the CAMR Hg emission reduction requirements in
accordance with the caps and timeline under CAMR. This action does not
establish those emission reduction requirements or schedule, which were
established by the CAMR rulemaking. Thus, the Agency is not requesting
comment on the emission reduction requirements or the schedule for
implementing these reductions.
For CAMR, EPA determined that there was authority under CAA section
111(d) for a Hg cap-and-trade program. Thus, EPA interpreted the term
``standard of performance,'' as applied to existing EGU sources, to
include a cap-and-trade program. EPA also determined that a cap-and-
trade program based on Hg control technology available in the relevant
timeframe is the best demonstrated system for reducing Hg emissions
from existing coal-fired Utility Units. CAMR adds Hg to the list of
pollutants covered under 40 CFR part 60, subpart Da, by establishing
emission limits for new sources and emission guidelines for existing
EGU sources.
CAMR established a mechanism by which Hg emissions from new and
existing Hg Budget units are capped at specified, nation-wide levels. A
first phase cap of 38 tons per year becomes effective in 2010, and a
second phase cap of 15 tons per year becomes effective in 2018.
Facilities must demonstrate compliance with the standard by holding one
``allowance'' for each ounce of Hg emitted in any given year.
Allowances are readily transferable among all regulated facilities.
The added benefit of the cap-and-trade approach is that it
dovetails well with the sulfur dioxide (SO2) and nitrogen
oxides (NOX) emission caps under CAIR (see 70 FR 25162, May
12, 2005). CAIR establishes a broadly-applicable cap-and-trade program
that significantly limits SO2 and NOX emissions
from the power sector. The advantage of regulating Hg at the same time
and using the same basic regulatory mechanism as for SO2 and
NOX is that significant Hg emissions reductions, especially
reductions of oxidized Hg, can and will be achieved by the air
pollution controls designed and installed to reduce SO2 and
NOX emissions. Because significant Hg emissions reductions
can be obtained as a ``co-benefit'' of controlling emissions of
SO2 and NOX, the coordinated regulation of Hg,
SO2, and NOX allows Hg reductions to be achieved
in a timely and cost-effective manner.
As discussed in CAMR, a Phase I cap based on ``co-benefits''
fulfills EPA's obligation to set a standard of performance based on the
best demonstrated system of emissions reduction. The Phase I Hg cap is
[[Page 77106]]
supported by current information on the availability of control
technologies, incremental cost-effectiveness of Hg emissions reductions
beyond co-benefits, and analysis of engineering, financial, and other
factors needed to install controls. The Phase I Hg emissions cap of 38
tons reflects the co-benefits level and is established as a fixed cap
in CAMR.
In CAMR, EPA established a Phase II Hg emissions cap based on the
reductions in Hg emissions resulting from the CAIR program together
with reductions that can be reasonably obtained through the use of Hg-
specific controls. This Hg cap of 15 tons is effective in 2018. As
discussed in CAMR, EPA concluded that the 2018 cap is warranted because
Hg-specific air pollution control technologies such as activated carbon
injection (ACI) will be available for general use sufficiently before
2018, thereby allowing for their deployment to comply with the Phase II
cap in 2018. The 15-ton cap in 2018 is also supported by cost
considerations, because the cap level will not have significant impacts
on energy supply and the cost of energy to the consumer.
F. State and Indian Country Emission Budgets
In CAMR, EPA outlined a method for apportioning the nation-wide
budget to coal-fired Utility Units located in individual States and in
Indian country. EPA maintains that the Hg emissions budget provides an
efficient method for achieving necessary reductions in Hg emissions,
while providing substantial flexibility in implementing the program.
The methodology for determining State budgets is described in CAMR (see
70 FR 28606). The 2010 State budgets were revised slightly as a result
of the reconsideration process (see Notice of Final Action on
Reconsideration, 71 FR 33388, June 9, 2006). EPA is not inviting
comment on the CAMR State and Indian country Hg budgets in connection
with this proposed rule.
In CAMR, EPA finalized a formula for determining the Hg budget for
coal-fired Utility Units located in a State or Indian country for 2010
and 2018. Under that formula, the EGU Hg budget for the State or Indian
Country equals the sum of the weighted shares for each existing
affected EGU in the State or Indian country of total baseline heat
input, where a unit's baseline heat input and the total baseline heat
input are adjusted to reflect the ranks of coal combusted by the unit
during the baseline period, to total heat input of all affected units.
As discussed in CAMR, EPA finalized adjustment factors of 1 for
bituminous, 1.25 for subbituminous, and 3 for lignite coals (see also
``Technical Support Document for the Clean Air Mercury Rule Notice of
Final Rulemaking, State, and Indian Country Emissions Budgets,'' EPA,
March 2005; EPA-HQ-OAR-2002-0056-6154).
Each of the 50 States and the District of Columbia covered by the
final CAMR has been assigned a State Hg emissions budget for coal-fired
Utility Units. An EGU Hg emissions budget has also been assigned for
existing coal-fired Utility Units located in Indian country. States
have the flexibility to meet these State budgets by participating in a
trading program or establishing another methodology for Hg emissions
reductions from coal-fired Utility Units, as discussed elsewhere in
this action. States have the ability to require Hg reductions beyond
those required by the State budget determined by EPA. Tribes that
choose to seek and obtain TAS status for that purpose have the same
flexibility in developing an appropriate Tribal Plan. The State EGU Hg
emission budgets are a permanent cap regardless of growth in the
electric sector and, therefore, States have the responsibility of
incorporating new coal-fired units in their EGU Hg emission budgets.
Similarly, the Hg emission budgets for coal-fired Utility Units located
in Indian country act as a permanent cap, and EPA, or a Tribe that has
obtained TAS status and is implementing an approved Tribal Plan, has
responsibility for incorporating new units into the EGU Hg emission
budget.
The final State, Indian country, and District of Columbia EGU Hg
emission budgets are presented in Table II-1 of this preamble. In CAMR
(as revised in the CAMR Notice of Final Action on Reconsideration, 71
FR 33388), EPA established budgets for the 50 States, the District of
Columbia, the Navajo Nation and the Ute Indian Tribe.
In CAMR, for areas of Indian country that do not currently have any
coal-fired electricity generation, EPA noted its intent to address any
future planned construction of coal-fired Utility Units in those areas
on a case-by-case basis, by working with the relevant Tribal government
to regulate the Utility Units through either a Tribal Plan, if an
eligible Tribe chooses to submit one, or a Federal Plan. The Agency
further explained that ``EPA does not believe that there is sufficient
information to design allocation provisions for new generation which
locates in Indian country at this time. Therefore, rather than create a
Federal allowance set-aside for Tribes, the EPA will work with Tribes
and potentially affected States to address concerns regarding the
equity of allowance allocations on a case-by-case basis as the need
arises. The EPA may choose to revisit this issue through a separate
rulemaking in the future.'' (See 70 FR 28606).
In this action, EPA is proposing to address the issue of how new
generation in areas of Indian country without an emissions budget will
be treated under CAMR and the CAMR Federal Plan. Since CAMR was
finalized, EPA has become aware of potential development of new
generation in Indian country, and the need to provide such generation
with certainty related to compliance costs.
After detailed consideration of this issue, EPA proposes to treat
new generation in areas of Indian country without an emissions budget
in the same way it treats new generation in States without emissions
budgets. New units in areas of Indian country without an emissions
budget and participating in the CAMR trading program would not receive
an allowance allocation, though these units, like new units in States
without emissions budgets, would be required to hold allowances equal
to emissions. For the two Tribes that have existing generation and,
thus, an emissions budget, they can provide new sources with allowances
through a new unit set-aside if they choose to seek, and ultimately are
granted, treatment as State (TAS) status for that purpose and then
submit a tribal implementation plan (TIP) which incorporates the CAMR
trading program. EPA does not believe that there is a strong argument
for treating new units locating in areas of Indian country without Hg
emissions budgets differently from new units locating in States without
emissions budgets. Further, EPA analysis suggests that the cost of
allowance purchase will be a very small share of the total annual cost
associated with a new unit, on the order of 1 percent of total
annualized costs in 2010. (See TSD and spreadsheet titled ``Cost
Analysis of Potential New Subbituminous Coal Plant'' available in the
docket.)
EPA is also taking comment on the alternative of creating a set-
aside budget for new unit generation locating in areas of Indian
country that do not have an emissions budget. A potential option is
that EPA could create a 300-pound (lb) annual set-aside budget
(approximately the annual Hg emissions for 10 new 300 MW coal-fired
units with 90 percent Hg control) for new unit generation in such
areas. This would require additional revisions to the CAMR State
budgets. The set-aside budget would be created by reducing each State's
EGU Hg emission budget by about 0.4 percent for years 2012-2017 and by
1.0 percent for 2018 and thereafter, to maintain
[[Page 77107]]
nationwide annual budgets of 38 tons and 15 tons, respectively. Such a
set-aside budget would not be created until 2012, in order to allow
States time to adjust their budgets and planned control strategies.
Considering the lead-time required to develop new coal-fired
generation, a new unit set-aside budget commencing in 2012 would likely
be well-timed to coincide with the earliest that new generation might
come on-line.
EPA would distribute this set-aside budget to new sources based on
a source's emissions from the previous year, consistent with the
approach that is used to determine the distribution of the new source
set-aside discussed in section III.C. If this budget were over-
subscribed for a given year, EPA would distribute the budget on a pro-
rata basis. However, if this budget were undersubscribed for a given
year, EPA would not redistribute the remaining portion of the budget
because of the further changes to State Plans that doing so would
require.
EPA requests comment on the creation of such a budget, the
appropriate size and start date, as well as whether the set-aside
should be available to new generation in States that do not have an Hg
emission budget, in addition to new generation in areas of Indian
country with no Hg emission budget.
As discussed in CAMR, EPA finalized Hg emission budgets of zero
tons for three States (Idaho, Rhode Island, and Vermont) and the
District of Columbia. New coal-fired Utility Units locating in these
areas will, nevertheless, be required to hold allowances equal to their
Hg emissions. As participants in the cap-and-trade program, these
sources could buy Hg allowances and meet their requirements. This is
similar to the situation that new units face under the existing Acid
Rain Program.
Table II-1.--State Annual EGU Hg Emission Budgets
------------------------------------------------------------------------
Budget (tons)
-------------------------------
State 2018 and
2010-2017 thereafter
------------------------------------------------------------------------
Alaska.................................. 0.010 0.004
Alabama................................. 1.289 0.509
Arkansas................................ 0.516 0.204
Arizona................................. 0.454 0.179
California.............................. 0.041 0.016
Colorado................................ 0.706 0.279
Connecticut............................. 0.053 0.021
Delaware................................ 0.072 0.028
District of Columbia.................... 0 0
Florida................................. 1.232 0.487
Georgia................................. 1.227 0.484
Hawaii.................................. 0.024 0.009
Idaho................................... 0 0
Iowa.................................... 0.727 0.287
Illinois................................ 1.594 0.629
Indiana................................. 2.097 0.828
Kansas.................................. 0.723 0.285
Kentucky................................ 1.525 0.602
Louisiana............................... 0.601 0.237
Massachusetts........................... 0.172 0.068
Maryland................................ 0.49 0.193
Maine................................... 0.001 0.001
Michigan................................ 1.303 0.514
Minnesota............................... 0.695 0.274
Missouri................................ 1.393 0.550
Mississippi............................. 0.291 0.115
Montana................................. 0.377 0.149
Navajo Nation Indian Country............ 0.600 0.237
North Carolina.......................... 1.133 0.447
North Dakota............................ 1.564 0.617
Nebraska................................ 0.421 0.166
New Hampshire........................... 0.063 0.025
New Jersey.............................. 0.153 0.060
New Mexico.............................. 0.299 0.118
Nevada.................................. 0.285 0.112
New York................................ 0.393 0.155
Ohio.................................... 2.057 0.812
Oklahoma................................ 0.721 0.285
Oregon.................................. 0.076 0.030
Pennsylvania............................ 1.779 0.702
Rhode Island............................ 0 0
South Carolina.......................... 0.58 0.229
South Dakota............................ 0.072 0.029
Tennessee............................... 0.944 0.373
Texas................................... 4.656 1.838
Utah.................................... 0.506 0.200
Ute Indian Tribe Reservation Indian 0.060 0.024
Country................................
Virginia................................ 0.592 0.234
Vermont................................. 0 0
Washington.............................. 0.198 0.078
[[Page 77108]]
Wisconsin............................... 0.89 0.351
West Virginia........................... 1.394 0.550
Wyoming................................. 0.952 0.376
------------------------------------------------------------------------
III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg Cap-and-Trade Program
In this action, EPA proposes to regulate coal-fired Utility Units
using a market-based, cap-and-trade program with a declining cap. As
discussed in CAMR (70 FR 28617), this type of program is a proven
method for achieving highly cost-effective emissions reductions while
providing sources compliance flexibility and certainty.
In 40 CFR part 62, subpart LLL, EPA proposes a Federal Hg cap-and-
trade program as a means of controlling Hg mass emissions from coal-
fired Utility Units (the proposed rules use the term ``electric
generating unit'' or ``EGU'') in a State for which this Federal Plan is
promulgated. Participation in the Hg Budget Trading Program would be
mandatory for all Utility Units covered by the final Federal Plan
resulting from this proposal. Mercury allowances--each allowance
representing a limited authorization to emit one ounce of Hg--would be
the currency used in the trading program. A total number of Hg
allowances would be allocated to coal-fired Utility Units in a State
equal to the amount of the State's EGU Hg trading program budget under
the Federal Plan. Utility Units participating in either the Federal Hg
cap-and-trade program or the CAMR State Hg cap-and-trade program would
be able to trade Hg allowances with each other, and use, for
compliance, Hg allowances issued under either type of program.
Under 40 CFR part 62, subpart LLL, as proposed, EPA would be
responsible for all aspects of program implementation, with the
exception of permitting. Permitting responsibility will lie with State
and local air permitting authorities with title V permit programs found
by EPA to meet the requirements of title V and its implementing
regulations, or in appropriate circumstances, with tribal authorities
implementing a delegated 40 CFR part 71 permit program. Mercury Budget
sources that currently have title V permits will be required to obtain
an amended permit which includes the Hg Budget Trading Program
requirements. Any Utility Unit that does not currently have a title V
permit will be required to obtain one which includes the necessary Hg
Budget Trading Program requirements. While they must be included in a
Hg Budget source's title V permit, the requirements of the Federal Hg
Budget Trading Program rule are Federally enforceable independent of
that permit.
As explained further in Section II of this preamble, the Agency is
proposing to provide an additional option under which States could
choose to submit a State allocation methodology, rather than a complete
State Plan addressing all elements of the CAMR Hg trading program. In
this way, the State could choose the methodology for allocating Hg
allowances to its EGU sources which it deems most appropriate, while
leaving other elements of CAMR implementation to a Federal Plan.
Under 40 CFR part 62, subpart LLL, as proposed, sources in the
Federal Hg Budget Trading Program would be required to monitor and
report their emissions in accordance with relevant portions of 40 CFR
part 75. Under CAMR, EPA promulgated revisions to 40 CFR part 75 that
establish Hg mass monitoring requirements and provide some flexibility
to regulated sources. Consistent and accurate monitoring of emissions
is necessary for accountability regarding compliance with the
requirement to hold Hg allowances and to ensure that an ounce of Hg
emissions attributed to one source in one State is equivalent to an
ounce attributed to another source in the same or another State.
EPA intends that if States choose to meet their Hg emission
reduction obligations under CAMR by adopting the State Plan model cap-
and-trade rule and participating in the EPA-administered trading
program, the EPA-administered State Plan trading program will be fully
integrated with the Federal Hg trading program that EPA may promulgate
in a final Federal Plan. Integration is possible because CAMR and the
corresponding Federal Plan both seek to achieve the same level of Hg
emission reductions from the same sources (i.e., coal-fired Utility
Units), and the State Hg model trading rule and the Federal Hg trading
rule contain essentially the same provisions.
In particular, EPA believes that, in order to be eligible to
participate in an effe
