Approval and Promulgation of Implementation Plans; Louisiana; Clean Air Interstate Rule Sulfur Dioxide Trading Program, 39741-39746 [E7-14068]
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Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Rules and Regulations
the public. As a result, the regulation
does not affect the general public.
Therefore, it would be helpful in
avoiding confusion with the public if 32
CFR part 650, is removed.
List of Subjects in 32 CFR Part 650
Air pollution control, Environmental
protection, Federal buildings and
facilities, Hazardous substances,
Historic preservation, Noise control,
Waste treatment and disposal, Water
pollution control.
PART 650—[REMOVED]
Accordingly, for reasons stated in the
preamble, under the authority of 10
U.S.C. 3012, 32 CFR part 650,
Environmental Protection and
Enhancement, is removed in its entirely.
I
Brenda S. Bowen,
Army Federal Register Liaison Officer.
[FR Doc. 07–3538 Filed 7–19–07; 8:45 am]
BILLING CODE 3710–08–M
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R06–OAR–2006–0849; FRL–8442–8]
Approval and Promulgation of
Implementation Plans; Louisiana;
Clean Air Interstate Rule Sulfur Dioxide
Trading Program
Environmental Protection
Agency (EPA).
ACTION: Direct final rule.
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AGENCY:
SUMMARY: EPA is taking a direct final
action to approve a revision to the
Louisiana State Implementation Plan
(SIP) submitted on September 22, 2006,
enacted at Louisiana Administrative
Code, Title 33, Part III, Chapter 5,
Section 506(C) (LAC 33:III.506(C)). This
revision addresses the requirements of
EPA’s Clean Air Interstate Rule (CAIR)
Sulfur Dioxide (SO2) Trading Program,
promulgated on May 12, 2005 and
subsequently revised on April 28, 2006.
EPA is approving the SIP revision as
fully implementing the CAIR SO2
requirements for Louisiana. Therefore,
as a consequence of this SIP approval,
EPA will also withdraw the CAIR
Federal Implementation Plan (CAIR FIP)
concerning SO2 emissions for Louisiana.
The CAIR FIPs for all States in the CAIR
region were promulgated on April 28,
2006 and subsequently revised on
December 13, 2006.
CAIR requires States to reduce
emissions of SO2 and nitrogen oxides
(NOX) that significantly contribute to,
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and interfere with maintenance of, the
national ambient air quality standards
for fine particulates and/or ozone in any
downwind state. CAIR establishes State
budgets for SO2 and NOX and requires
States to submit SIP revisions that
implement these budgets in States that
EPA concluded did contribute to
nonattainment in downwind states.
States have the flexibility to choose
which control measures to adopt to
achieve the budgets, including
participating in the EPA-administered
cap-and-trade programs. In this SIP
revision that EPA is approving, EPA
finds that Louisiana meets CAIR SO2
requirements by participating in the
EPA-administered cap-and-trade
program addressing SO2 emissions.
The intended effect of this action is to
reduce SO2 emissions from the State of
Louisiana that are contributing to
nonattainment of the PM2.5 National
Ambient Air Quality Standard (NAAQS
or standard) in downwind states. This
action is being taken under section 110
of the Federal Clean Air Act (the Act or
CAA).
DATES: This rule is effective on
September 18, 2007 without further
notice, unless EPA receives relevant
adverse comment by August 20, 2007. If
EPA receives such comment, EPA will
publish a timely withdrawal in the
Federal Register informing the public
that this rule will not take effect.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R06–
OAR–2006–0849, by one of the
following methods:
(1) www.regulations.gov: Follow the
on-line instructions for submitting
comments.
(2) E-mail: Mr. Jeff Robinson at
robinson.jeffrey@epa.gov. Please also cc
the person listed in the FOR FURTHER
INFORMATION CONTACT paragraph below.
(3) U.S. EPA Region 6 ‘‘Contact Us’’
Web site: https://epa.gov/region6/
r6coment.htm. Please click on ‘‘6PD’’
(Multimedia) and select ‘‘Air’’ before
submitting comments.
(4) Fax: Mr. Jeff Robinson, Chief, Air
Permits Section (6PD–R), at fax number
214–665–6762.
(5) Mail: Mr. Jeff Robinson, Chief, Air
Permits Section (6PD–R), Environmental
Protection Agency, 1445 Ross Avenue,
Suite 1200, Dallas, Texas 75202–2733.
(6) Hand or Courier Delivery: Mr. Jeff
Robinson, Chief, Air Permits Section
(6PD–R), Environmental Protection
Agency, 1445 Ross Avenue, Suite 1200,
Dallas, Texas 75202–2733. Such
deliveries are accepted only between the
hours of 8:30 a.m. and 4:30 p.m.
weekdays except for legal holidays.
Special arrangements should be made
for deliveries of boxed information.
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Instructions: Direct your comments to
Docket ID No. EPA–R06–OAR–2006–
0849. 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
the disclosure of which is restricted by
statute. Do not submit information
through https://www.regulations.gov or
e-mail, if you believe that it is CBI or
otherwise protected from disclosure.
The https://www.regulations.gov Web
site is an ‘‘anonymous access’’ system,
which means that 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 https://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 along with any disk or CD–
ROM submitted. 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 and any form of encryption
and should be free of any defects or
viruses. For additional information
about EPA’s public docket, visit the EPA
Docket Center homepage at https://
www.epa.gov/epahome/dockets.htm.
Docket: All documents in the docket
are listed in the https://
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, e.g., CBI or other
information the disclosure of which is
restricted by statute. Certain other
material, such as copyrighted material,
will be publicly available only in hard
copy. Publicly available docket
materials are available either
electronically in https://
www.regulations.gov or in hard copy at
the Air Permits Section (6PD–R),
Environmental Protection Agency, 1445
Ross Avenue, Suite 700, Dallas, Texas
75202–2733. The file will be made
available by appointment for public
inspection in the Region 6 FOIA Review
Room between the hours of 8:30 a.m.
and 4:30 p.m. weekdays except for legal
holidays. Contact the person listed in
the FOR FURTHER INFORMATION CONTACT
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Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Rules and Regulations
paragraph below to make an
appointment. If possible, please make
the appointment at least two working
days in advance of your visit. A 15 cent
per page fee will be charged for making
photocopies of documents. On the day
of the visit, please check in at the EPA
Region 6 reception area on the seventh
floor at 1445 Ross Avenue, Suite 700,
Dallas, Texas.
The State submittal related to this SIP
revision, and which is part of the EPA
docket, is also available for public
inspection at the State Air Agency listed
below during official business hours by
appointment:
Louisiana Department of
Environmental Quality, Office of
Environmental Quality Assessment, 602
N. Fifth Street, Baton Rouge, Louisiana
70802.
FOR FURTHER INFORMATION CONTACT: If
you have questions concerning today’s
proposal, please contact Ms. Adina
Wiley, Air Permits Section (6PD–R),
Environmental Protection Agency,
Region 6, 1445 Ross Avenue, Suite
1200, Dallas, TX 75202–2733. The
telephone number is (214) 665–2115.
Ms. Wiley can also be reached via
electronic mail at wiley.adina@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document wherever,
any reference to ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is
used, we mean EPA.
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Table of Contents
I. What Action Is EPA Taking?
II. What Is the Regulatory History of CAIR
and the CAIR FIPs?
III. What Are the General Requirements of
CAIR and the CAIR FIPs?
IV. What Are the Types of CAIR SIP
Submittals?
V. What Is EPA’s Analysis of the Louisiana
CAIR SO2 SIP Submittal?
A. State Budget for SO2 Allowance
Allocations
B. CAIR SO2 Cap-and-Trade Program
C. Individual Opt-In Units
VI. Final Action
VII. Statutory and Executive Order Reviews
I. What Action Is EPA Taking?
EPA is taking direct final action to
approve a revision to Louisiana’s SIP,
submitted on September 22, 2006,
enacted at Louisiana Administrative
Code, Title 33, Part III, Chapter 5,
Section 506(C) (LAC 33:III.506(C)). In its
SIP revision, Louisiana would meet
CAIR SO2 requirements by requiring
certain electric generating units (EGUs)
to participate in the EPA-administered
CAIR cap-and-trade program addressing
SO2 emissions. The SIP as revised that
EPA is approving meets the applicable
requirements of CAIR. Our detailed
analysis of this SIP revision is in the
Technical Support Document (TSD) for
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the Louisiana CAIR SO2 Trading
Program. The TSD is available as
specified in the section of this
document identified as ADDRESSES. As a
consequence of the SIP approval, the
Administrator of EPA will also issue a
final rule to withdraw the FIP
concerning SO2 emissions for Louisiana.
This action will delete and reserve 40
CFR 52.985 in part 52. The withdrawal
of the CAIR FIP for Louisiana is a
conforming amendment that must be
made once the SIP is approved because
EPA’s authority to issue the FIP was
premised on a deficiency in the SIP for
Louisiana. Once the SIP is fully
approved, EPA no longer has authority
for the FIP. Thus, EPA will not have the
option of maintaining the FIP following
the full SIP approval. Accordingly, EPA
does not intend to offer an opportunity
for a public hearing or an additional
opportunity for written public comment
on the withdrawal of the FIP.
We are publishing this rule without
prior proposal because we view this as
a noncontroversial amendment and
anticipate no relevant adverse
comments. However, in the proposed
rules section of this Federal Register
publication, we are publishing a
separate document that will serve as the
proposal to approve the SIP revision if
relevant adverse comments are received.
This rule will be effective on September
18, 2007 without further notice unless
we receive relevant adverse comment by
August 20, 2007. If we receive relevant
adverse comments, we will publish a
timely withdrawal in the Federal
Register informing the public that the
rule will not take effect. We will address
all public comments in a subsequent
final rule based on the proposed rule.
We will not institute a second comment
period on this action. Any parties
interested in commenting must do so
now. Please note that if we receive
adverse comment on an amendment,
paragraph, or section of this rule and if
that provision may be severed from the
remainder of the rule, we may adopt as
final those provisions of the rule that are
not the subject of an adverse comment.
II. What Is the Regulatory History of
CAIR and the CAIR FIPs?
The Clean Air Interstate Rule (CAIR)
was published by EPA on May 12, 2005
(70 FR 25162). In this rule, EPA
determined that 28 States and the
District of Columbia contribute
significantly to nonattainment and
interfere with maintenance of the
national ambient air quality standards
(NAAQS) for fine particles (PM2.5) and
/or 8-hour ozone in downwind States in
the eastern part of the country. As a
result, EPA required those upwind
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States to revise their SIPs to include
control measures that reduce emissions
of SO2, which is a precursor to PM2.5
formation, and/or NOX, which is a
precursor to both ozone and PM2.5
formation. For jurisdictions that
contribute significantly to downwind
PM2.5 nonattainment, CAIR sets annual
State-wide emission reduction
requirements (i.e., budgets) for SO2 and
annual State-wide emission reduction
requirements for NOX. Similarly, for
jurisdictions that contribute
significantly to 8-hour ozone
nonattainment, CAIR sets State-wide
emission reduction requirements for
NOX for the ozone season (defined at 40
CFR 97.302 as May 1st to September
30th). Under CAIR, States may
implement these reduction
requirements by participating in the
EPA-administered cap-and-trade
programs or by adopting any other
control measures. Louisiana was found
to significantly contribute to
nonattainment of the PM2.5 standard in
Alabama and the 8-hour ozone standard
in Texas, resulting in Louisiana being
subject to the SO2, annual NOX, and
ozone season NOX CAIR requirements.
CAIR explains to subject States what
must be included in SIPs to address the
requirements of section 110(a)(2)(D) of
the Clean Air Act (CAA) with regard to
interstate transport with respect to the
8-hour ozone and PM2.5 NAAQS. EPA
made national findings, effective on
May 25, 2005, that the States had failed
to submit SIPs meeting the requirements
of section 110(a)(2)(D). The SIPs were
due in July 2000, 3 years after the
promulgation of the 8-hour ozone and
PM2.5 NAAQS. These findings started a
2-year clock for EPA to promulgate a
Federal Implementation Plan (FIP) to
address the requirements of section
110(a)(2)(D). Under CAA section
110(c)(1), EPA may issue a FIP anytime
after such findings are made and must
do so within two years unless a SIP
revision correcting the deficiency is
approved by EPA before the FIP is
promulgated.
On April 28, 2006, EPA promulgated
CAIR FIPs for all States covered by
CAIR in order to ensure the emissions
reductions required by CAIR are
achieved on schedule. See 40 CFR 52.35
and 52.36. Each CAIR State is subject to
the FIP until the State fully adopts, and
EPA approves, a SIP revision meeting
the requirements of CAIR. The CAIR
FIPs require certain EGUs to participate
in the EPA-administered CAIR SO2,
NOX annual, and NOX ozone season
trading programs, as appropriate, found
at 40 CFR part 97. The CAIR FIPs’ SO2,
NOX annual, and NOX ozone season
trading programs impose essentially the
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same requirements as, and are
integrated with, the respective CAIR SIP
trading programs. The integration of the
CAIR FIP and SIP trading programs
means that these trading programs will
work together to create effectively a
single trading program for each
regulated pollutant (SO2, NOX annual,
and NOX ozone season) in all States
covered by the CAIR FIPs’ or SIPs’
trading program for that pollutant. The
CAIR FIPs also allow States to submit
abbreviated SIP revisions that, if
approved by EPA, will automatically
replace or supplement certain CAIR FIP
provisions, while the CAIR FIPs remain
in place for all other provisions.
On April 28, 2006, EPA published
two additional CAIR-related final rules
that added the States of Delaware and
New Jersey to the list of States subject
to CAIR for PM2.5 and announced EPA’s
final decisions on reconsideration of
five issues, without making any
substantive changes to the CAIR
requirements. On December 13, 2006,
EPA published minor, non-substantive
revisions that serve to clarify CAIR and
the CAIR FIPs.
III. What Are the General Requirements
of CAIR and the CAIR FIPs?
CAIR establishes State-wide emission
budgets for SO2 and NOX and is to be
implemented in two phases. The first
phase of NOX reductions starts in 2009
and continues through 2014, while the
first phase of SO2 reductions starts in
2010 and continues through 2014. The
second phase of reductions for both
NOX and SO2 starts in 2015 and
continues thereafter. CAIR requires
States to implement the budgets by
either: (1) Requiring EGUs to participate
in the EPA-administered cap-and-trade
programs; or (2) adopting other control
measures of the State’s choosing and
demonstrating that such control
measures will result in compliance with
the applicable State SO2 and NOX
budgets.
The May 12, 2005 and April 28, 2006
CAIR rules provide model rules that
States must adopt (with certain limited
changes, if desired) if they want to
participate in the EPA-administered
trading programs. The December 13,
2006, revisions to CAIR and the CAIR
FIPs were non-substantive and,
therefore, do not affect EPA’s evaluation
of a State’s SIP revision.
With two exceptions, only States that
choose to meet the requirements of
CAIR through methods that exclusively
regulate EGUs are allowed to participate
in the EPA-administered trading
programs. One exception is for States
that adopt the opt-in provisions of the
model rules to allow non-EGUs
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individually to opt into the EPAadministered trading programs. The
other exception is for States that include
all non-EGUs from their NOX SIP Call
trading programs in their CAIR NOX
ozone season trading programs.
Louisiana was not subject to the NOX
SIP Call requirements; therefore this
exception is not available to the State.
IV. What Are the Types of CAIR SIP
Submittals?
States have the flexibility to choose
the type of control measures they will
use to meet the requirements of CAIR.
EPA anticipates that most States will
choose to meet the CAIR requirements
by selecting an option that requires
EGUs to participate in the EPAadministered CAIR cap-and-trade
programs. For such States, EPA has
provided two approaches for submitting
and obtaining approval for CAIR SIP
revisions. States may submit full SIP
revisions that adopt the model CAIR
cap-and-trade rules. If approved, these
SIP revisions will fully replace the
State’s CAIR FIPs. Alternatively, States
may submit abbreviated SIP revisions.
The provisions in the abbreviated SIP
revision, if approved into a State’s SIP,
will not replace that State’s CAIR FIP;
however, the requirements for the CAIR
FIPs at 40 CFR part 52 incorporate the
provisions of the Federal CAIR trading
programs in 40 CFR part 97. The Federal
CAIR trading programs in 40 CFR part
97 provide that whenever EPA approves
an abbreviated SIP revision, the
provisions in the abbreviated SIP
revision will be used in place of or in
conjunction with, as appropriate, the
corresponding provisions in 40 CFR part
97 of the State’s CAIR FIP.
A State submitting a full SIP revision
may either adopt regulations that are
substantively identical to the model
rules or incorporate by reference the
model rules. CAIR provides that States
may only make limited changes to the
model rules if the States want to
participate in the EPA-administered
trading programs. A full SIP revision
may change the model rules only by
altering their applicability and
allowance allocation provisions to:
(1) Include NOX SIP Call trading
sources that are not EGUs under CAIR
in the CAIR NOX Ozone Season Trading
Program;
(2) Provide for State allocation of NOX
annual or ozone season allowances
using a methodology chosen by the
State;
(3) Provide for State allocation of NOX
annual allowances from the compliance
supplement pool (CSP) using the State’s
choice of allowed, alternative
methodologies; or
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39743
(4) Allow units that are not otherwise
CAIR units to opt individually into the
CAIR SO2, NOX Annual, or NOX Ozone
Season Trading Programs under the optin provisions in the model rules.
EPA’s authority to issue the CAIR
FIPs was premised on the deficiency of
each State’s SIP in addressing the CAIR
requirements. EPA will not have the
option of maintaining the CAIR FIP
following approval of a full CAIR SIP
revision. Therefore, an approved CAIR
full SIP revision will replace the CAIR
FIP requirements for NOX annual, NOX
ozone season, or SO2 emissions, as
applicable, for that State.
V. What Is EPA’s Analysis of the
Louisiana CAIR SO2 SIP Submittal?
A. State Budget for SO2 Allowance
Allocations
The CAIR State SO2 budgets were
derived by discounting the tonnage of
emissions authorized by annual
allowance allocations under the Acid
Rain Program under title IV of the CAA.
Under CAIR, each allowance allocated
in the Acid Rain Program for the years
in Phase 1 of CAIR (2010 through 2014)
authorizes 0.5 ton of SO2 emissions in
the CAIR trading program, and each
Acid Rain Program allowance allocated
for the years in Phase 2 of CAIR (2015
and thereafter) authorizes 0.35 ton of
SO2 emissions in the CAIR trading
program.
In today’s action, EPA is approving
Louisiana’s SIP revision that
incorporates by reference the SO2 model
trading rule as satisfying the budget
requirements of 40 CFR 51.124(e). At 40
CFR 51.124(o)(1) we explain that any
State that incorporates by reference the
CAIR SO2 trading program at subparts
AAA through HHH of 40 CFR part 96,
meets the budget obligation under 40
CFR 51.124(e). Therefore, Louisiana’s
SIP revision establishes the State CAIR
SO2 budgets as 59,948 tons of SO2
emissions for 2010–2014 and 41,963
tons of SO2 emissions in 2015 and
thereafter. Louisiana’s SIP revision sets
these SO2 budgets as the total amount of
allowances available for allocation for a
given year under the EPA-administered
SO2 cap-and-trade program.
B. CAIR SO2 Cap-and-Trade Program
The provisions of the CAIR SO2
model rule are similar to the provisions
of the CAIR NOX annual and ozone
season model rules, which largely
mirror the structure of the NOX SIP Call
model trading rule in 40 CFR part 96,
subparts A through I. However, the SO2
model rule is coordinated with the
ongoing Acid Rain SO2 cap-and-trade
program under CAA title IV. The SO2
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model rule uses the title IV allowances
for compliance, with each allowance
allocated for 2010–2014 authorizing
only 0.50 ton of emissions and each
allowance allocated for 2015 and
thereafter authorizing only 0.35 ton of
emissions. Banked title IV allowances
allocated for years before 2010 can be
used at any time in the CAIR SO2 capand-trade program, with each such
allowance authorizing 1 ton of
emissions. Title IV allowances are to be
freely transferable among sources
covered by the Acid Rain Program and
sources covered by the CAIR SO2 capand-trade program.
EPA also used the CAIR SO2 model
trading rule as the basis for the SO2
trading program in the CAIR FIPs. The
CAIR FIPs’ trading rules are virtually
identical to the CAIR model trading
rules, with changes made to account for
federal rather than state
implementation. The CAIR model SO2
trading rules and the respective CAIR
FIPs’ trading rules are designed to work
together as an integrated SO2 trading
program.
In the September 22, 2006, SIP
revision, Louisiana chooses to
implement its CAIR SO2 budgets by
requiring EGUs to participate in the
EPA-administered cap-and-trade
program for SO2 emissions. Louisiana
has adopted a full SIP revision that
incorporates by reference the CAIR
model cap-and-trade rule for SO2
emissions as published at 40 CFR part
96, subparts AAA–HHH on July 1, 2005,
and as revised at 70 FR 25162–25405,
May 12, 2005, and 71 FR 25162–25405,
April 28, 2006. This SIP revision does
not include subpart III, CAIR SO2 Optin Units, and any references to opt-in
units. This SIP revision also does not
include the December 13, 2006,
revisions to the SO2 trading rules in the
CAIR and CAIR FIPs.
C. Individual Opt-In Units
The opt-in provisions of the CAIR
model trading rules allow certain nonEGUs (i.e., boilers, combustion turbines,
and other stationary fossil-fuel-fired
devices) that do not meet the
applicability criteria for a CAIR trading
program to participate voluntarily in
(i.e., opt into) the CAIR trading program.
A non-EGU may opt into one or more
of the CAIR trading programs. In order
to qualify to opt into a CAIR trading
program, a unit must vent all emissions
through a stack and be able to meet
monitoring, recordkeeping, and
reporting requirements of 40 CFR part
75. The owners and operators seeking to
opt a unit into a CAIR trading program
must apply for a CAIR opt-in permit. If
the unit is issued a CAIR opt-in permit,
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the unit becomes a CAIR unit, is
allocated allowances, and must meet the
same allowance-holding and emissions
monitoring and reporting requirements
as other units subject to that CAIR
trading program. The opt-in provisions
provide for two methodologies for
allocating allowances for opt-in units,
one methodology that applies to opt-in
units in general and a second
methodology that allocates allowances
only to opt-in units that the owners and
operators intend to repower before
January 1, 2015.
States have several options
concerning the opt-in provisions. States
may adopt the CAIR opt-in provisions
entirely or may adopt them but exclude
one of the methodologies for allocating
allowances. States may also decline to
adopt the opt-in provisions.
Louisiana has chosen not to allow
non-EGUs to opt into the CAIR SO2
trading program. Louisiana incorporated
by reference the CAIR SO2 Trading
Program, published at 40 CFR part 96,
subparts AAA–HHH on July 1, 2005,
and as revised at 70 FR 25162–25405,
May 12, 2005, and 71 FR 25162–25405,
April 28, 2006. This SIP revision does
not include subpart III, CAIR SO2 Optin Units, and any references to opt-in
units.
VI. Final Action
We are approving Louisiana’s CAIR
SO2 SIP revision submitted on
September 22, 2006, enacted at LAC
33:III.506(C). Under this SIP revision,
Louisiana is choosing to participate in
the EPA-administered cap-and-trade
program for SO2 emissions. Our
technical analysis has shown that this
SIP revision is consistent with the
requirements of 40 CFR part 51,
including the specific CAIR SO2
requirements at 40 CFR 51.124 as
published on May 12, 2005, and further
revised on April 28, 2006; and all
applicable requirements of the CAA.
While we are approving the Louisiana
CAIR SO2 SIP as satisfying the CAIR
SO2 requirements, it is important to note
that the Louisiana SIP revision does not
incorporate EPA’s latest revisions to
CAIR made on December 13, 2006, and
any future revisions. We understand
that Louisiana will routinely update its
SIP to reflect this change and any future
EPA actions on the CAIR SO2 Trading
Program.
As a consequence of this SIP
approval, the Administrator of EPA will
also issue, without providing an
opportunity for a public hearing or an
additional opportunity for written
public comment, a final rule to
withdraw the CAIR FIP concerning SO2
emissions for Louisiana. This action
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will delete and reserve 40 CFR 52.985
in part 52.
VII. Statutory and Executive Order
Reviews
Under Executive Order 12866 (58 FR
51735, October 4, 1993), this action is
not a ‘‘significant regulatory action’’ and
therefore is not subject to review by the
Office of Management and Budget. For
this reason and because this action will
not have a significant, adverse effect on
the supply, distribution, or use of
energy, this action is also not subject to
Executive Order 13211, ‘‘Actions
Concerning Regulations That
Significantly Affect Energy Supply,
Distribution, or Use’’ (66 FR 28355, May
22, 2001). This action merely approves
state law as meeting Federal
requirements and imposes no additional
requirements beyond those imposed by
state law. Accordingly, the
Administrator certifies that this rule
will not have a significant economic
impact on a substantial number of small
entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this
rule approves pre-existing requirements
under state law and does not impose
any additional enforceable duty beyond
that required by state law, it does not
contain any unfunded mandate or
significantly or uniquely affect small
governments, as described in the
Unfunded Mandates Reform Act of 1995
(Pub. L. 104–4).
This rule also does not have tribal
implications because it will not have a
substantial direct effect on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes,
as specified by Executive Order 13175
(65 FR 67249, November 9, 2000). This
action also does not have Federalism
implications because it does 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
Executive Order 13132 (64 FR 43255,
August 10, 1999). This action merely
approves a state rule implementing a
Federal standard, and does not alter the
relationship or the distribution of power
and responsibilities established in the
Act. The EPA interprets Executive Order
13045, ‘‘Protection of Children from
Environmental Health Risks and Safety
Risks’’ (62 FR 19885, April 23, 1997), as
applying only to those regulatory
actions that concern health or safety
risks such that the analysis required
under section 5–501 of the Executive
E:\FR\FM\20JYR1.SGM
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39745
Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Rules and Regulations
Order has the potential to influence the
regulation. This rule is not subject to
Executive Order 13045 because it
approves a state program. Executive
Order 12898 (59 FR 7629, February 16,
1994) establishes federal executive
policy on environmental justice.
Because this rule merely approves a
state rule implementing a Federal
standard, EPA lacks the discretionary
authority to modify today’s regulatory
decision on the basis of environmental
justice considerations.
In reviewing SIP submissions, EPA’s
role is to approve state choices,
provided that they meet the criteria of
the Act. In this context, in the absence
of a prior existing requirement for the
State to use voluntary consensus
standards (VCS), EPA has no authority
to disapprove a SIP submission for
failure to use VCS. It would thus be
inconsistent with applicable law for
EPA, when it reviews a SIP submission,
to use VCS in place of a SIP submission
that otherwise satisfies the provisions of
the Act. Thus, the requirements of
section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not
apply. This rule does not impose an
information collection burden under the
provisions of the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.).
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this rule and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2).
Under section 307(b)(1) of the CAA,
petitions for judicial review of this
action must be filed in the United States
Court of Appeals for the appropriate
circuit by September 18, 2007. Filing a
petition for reconsideration by the
Administrator of this final rule does not
affect the finality of this rule for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action. This action may not
be challenged later in proceedings to
enforce its requirements. (See section
307(b)(2).)
relations, Nitrogen dioxide, Ozone,
Particulate matter, Reporting and
recordkeeping requirements, Sulfur
oxides.
Dated: July 11, 2007.
Lawrence Starfield,
Acting Regional Administrator, EPA Region
6.
I
40 CFR part 52 is amended as follows:
PART 52—[AMENDED]
1. The authority citation for part 52
continues to read as follows:
I
Authority: 42 U.S.C. 7401 et seq.
Subpart T—Louisiana
2. Section 52.970 is amended as
follows:
I a. In paragraph (c) the table entitled
‘‘EPA Approved Louisiana Regulations
in the Louisiana SIP’’ is amended under
Chapter 5—Permit Procedures, by
adding in numerical order a new entry
for ‘‘Section 506(c)’’.
I b. In paragraph (e) the table entitled
‘‘EPA Approved Louisiana
Nonregulatory Provisions and QuasiRegulatory Measures’’ is amended by
adding a new entry for the ‘‘Clean Air
Interstate Rule Sulfur Dioxide Trading
Program’’.
I
List of Subjects in 40 CFR Part 52
§ 52.970
Environmental protection, Air
pollution control, Intergovernmental
*
Identification of plan.
*
*
(c) * * *
*
*
EPA APPROVED LOUISIANA REGULATIONS IN THE LOUISIANA SIP
State citation
State approval date
Title/subject
*
*
*
EPA approval date
*
*
Comments
*
*
Chapter 5—Permit Procedures
*
*
Section 506(c) ..........................
*
ebenthall on PRODPC61 with RULES
*
*
*
Clean Air Interstate Rule Requirements—Annual Sulfur
Dioxide.
*
*
VerDate Aug<31>2005
*
*
*
14:56 Jul 19, 2007
*
09/20/06
*
07/20/07, [Insert FR page
number where document
begins].
*
*
*
(e) * * *
Jkt 211001
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*
*
Sections 506(A), (B), (D), and
(E) NOT in SIP.
20JYR1
*
39746
Federal Register / Vol. 72, No. 139 / Friday, July 20, 2007 / Rules and Regulations
EPA APPROVED LOUISIANA NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES
Applicable geographic or nonattainment area
Name of SIP provision
*
*
Clean Air Interstate Rule Sulfur
Dioxide Trading Program.
*
BILLING CODE 6560–50–P
Centers for Medicare & Medicaid
Services
42 CFR Part 402
[CMS–6146–F; CMS–6019–F]
RINS 0938–AM98; 0938–AN48
Medicare Program; Revised Civil
Money Penalties, Assessments,
Exclusions, and Related Appeals
Procedures
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Final rule.
ebenthall on PRODPC61 with RULES
AGENCY:
SUMMARY: This final rule establishes the
procedures for imposing exclusions for
certain violations of the Medicare
program and is based on the procedures
that the Office of Inspector General has
published for civil money penalties,
assessments, and exclusions under their
delegated authority. Implementation of
this final rule protects beneficiaries
from persons (that is, health care
providers and entities) found in
noncompliance with Medicare
regulations, and otherwise improves the
safeguard provisions under the
Medicare statute. This final rule also
establishes procedures that enable a
person targeted for exclusion from the
Medicare program to request the Centers
for Medicare & Medicaid Services to act
on its behalf to recommend to the
Inspector General that the exclusion
from Medicare be waived due to
hardship that would be placed on
Medicare beneficiaries as a result of the
person’s exclusion.
DATES: Effective Date: This final rule is
effective on August 20, 2007.
Jkt 211001
09/22/06 ..................................
Joel
Cohen, (410) 786–3349. Joe Strazzire,
(410) 786–2775.
SUPPLEMENTARY INFORMATION:
FOR FURTHER INFORMATION CONTACT:
A. Statutory and Regulatory History
Section 2105 of the Omnibus Budget
Reconciliation Act of 1981 (Pub. L. 97–
35) added section 1128A to the Social
Security Act (the Act) to authorize the
Secretary of Health and Human Services
(HHS) to impose civil money penalties
(CMPs), assessments, and exclusions
from the Medicare program for certain
persons (that is, health care facilities,
practitioners, suppliers, or other
entities) under certain circumstances.
Exclusion provides the ultimate
enforcement tool for agencies
attempting to establish compliance with
legal and program standards, and is
used in addition to potential civil,
criminal, and other administrative
proceedings.
Since 1981, the Congress has
significantly increased both the number
and types of circumstances under which
the Secretary may impose the exclusion
of a person from the Medicare and State
health care programs. The Secretary has
delegated the authority for these
provisions to either the Office of the
Inspector General (OIG) or CMS
(October 20, 1994 rule, 59 FR 52967).
The exclusion authorities delegated to
the OIG for the most part address fraud,
misrepresentation, or falsification, while
those that address noncompliance with
programmatic or regulatory
requirements are delegated to CMS.
However, the OIG has the authority to
impose exclusions and to prosecute
cases involving exclusions that were
delegated to CMS, if CMS and the OIG
jointly determine it to be in the interest
of economy, efficiency, or effective
coordination of activities. The
determination may be made either on a
case-by-case basis, or for all cases
brought under a particular listed
authority.
PO 00000
Frm 00020
Fmt 4700
EPA approval date
*
I. Background
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
14:38 Jul 19, 2007
*
Statewide ................................
[FR Doc. E7–14068 Filed 7–19–07; 8:45 am]
VerDate Aug<31>2005
State submittal date/effective
date
Sfmt 4700
Explanation
*
07/20/07,
[Insert FR
page
number
where
document
begins]
*
Acid Rain Program Provisions
NOT in SIP.
In the December 14, 1998 Federal
Register (63 FR 68687), we published a
final rule entitled ‘‘Medicare and
Medicaid Program; Civil Money
Penalties, Assessments, Exclusions, and
Related Appeals Procedures.’’ That rule
set forth the procedures for pursuing
civil money penalties (CMPs) and
assessments, and added a new part 402
to title 42, chapter IV of the Code of
Federal Regulations (CFR) to
incorporate our CMP and assessment
authorities. However, we did not
address exclusions in that final rule.
Instead, we reserved subpart C for
exclusions so that we could incorporate
the relevant regulations at a future date.
In the December 14, 1998 final rule,
we indicated that our procedures for
imposing the CMPs and assessment
authorities delegated to CMS were based
on the procedures that the OIG had
delineated in 42 CFR part 1003. We also
made the OIG’s hearing and appeal
procedures set forth in 42 CFR part 1005
applicable to the CMP, assessment, and
exclusion authorities delegated to us.
In the July 23, 2004 Federal Register
(69 FR 43956), we published a proposed
rule entitled ‘‘Medicare Program;
Revised Civil Money Penalties,
Assessments, Exclusions, and Related
Appeals Procedures.’’ This proposed
rule would amend subpart C by
establishing the procedures for
imposing exclusions for certain
violations of the Medicare program. The
proposed rule would incorporate the
general requirements and procedures
that are common to the imposition of an
exclusion from the Medicare program.
In the August 4, 2005 Federal
Register (70 FR 44879), we published a
proposed rule entitled ‘‘Medicare
Program; Revised Civil Money Penalties,
Assessments, Exclusions and Related
Appeals Procedures’’ that would
implement section 949 of the Medicare
Prescription Drug, Improvement, and
Modernization Act of 2003 (MMA) (Pub.
L. 108–173). Section 949 of the MMA
amended section 1128(c)(3)(B) of the
Act to indicate that ‘‘[s]ubject to
E:\FR\FM\20JYR1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 139 (Friday, July 20, 2007)]
[Rules and Regulations]
[Pages 39741-39746]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14068]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R06-OAR-2006-0849; FRL-8442-8]
Approval and Promulgation of Implementation Plans; Louisiana;
Clean Air Interstate Rule Sulfur Dioxide Trading Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Direct final rule.
-----------------------------------------------------------------------
SUMMARY: EPA is taking a direct final action to approve a revision to
the Louisiana State Implementation Plan (SIP) submitted on September
22, 2006, enacted at Louisiana Administrative Code, Title 33, Part III,
Chapter 5, Section 506(C) (LAC 33:III.506(C)). This revision addresses
the requirements of EPA's Clean Air Interstate Rule (CAIR) Sulfur
Dioxide (SO2) Trading Program, promulgated on May 12, 2005
and subsequently revised on April 28, 2006. EPA is approving the SIP
revision as fully implementing the CAIR SO2 requirements for
Louisiana. Therefore, as a consequence of this SIP approval, EPA will
also withdraw the CAIR Federal Implementation Plan (CAIR FIP)
concerning SO2 emissions for Louisiana. The CAIR FIPs for
all States in the CAIR region were promulgated on April 28, 2006 and
subsequently revised on December 13, 2006.
CAIR requires States to reduce emissions of SO2 and
nitrogen oxides (NOX) that significantly contribute to, and
interfere with maintenance of, the national ambient air quality
standards for fine particulates and/or ozone in any downwind state.
CAIR establishes State budgets for SO2 and NOX
and requires States to submit SIP revisions that implement these
budgets in States that EPA concluded did contribute to nonattainment in
downwind states. States have the flexibility to choose which control
measures to adopt to achieve the budgets, including participating in
the EPA-administered cap-and-trade programs. In this SIP revision that
EPA is approving, EPA finds that Louisiana meets CAIR SO2
requirements by participating in the EPA-administered cap-and-trade
program addressing SO2 emissions.
The intended effect of this action is to reduce SO2
emissions from the State of Louisiana that are contributing to
nonattainment of the PM2.5 National Ambient Air Quality
Standard (NAAQS or standard) in downwind states. This action is being
taken under section 110 of the Federal Clean Air Act (the Act or CAA).
DATES: This rule is effective on September 18, 2007 without further
notice, unless EPA receives relevant adverse comment by August 20,
2007. If EPA receives such comment, EPA will publish a timely
withdrawal in the Federal Register informing the public that this rule
will not take effect.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R06-
OAR-2006-0849, by one of the following methods:
(1) www.regulations.gov: Follow the on-line instructions for
submitting comments.
(2) E-mail: Mr. Jeff Robinson at robinson.jeffrey@epa.gov. Please
also cc the person listed in the FOR FURTHER INFORMATION CONTACT
paragraph below.
(3) U.S. EPA Region 6 ``Contact Us'' Web site: https://epa.gov/
region6/r6coment.htm. Please click on ``6PD'' (Multimedia) and select
``Air'' before submitting comments.
(4) Fax: Mr. Jeff Robinson, Chief, Air Permits Section (6PD-R), at
fax number 214-665-6762.
(5) Mail: Mr. Jeff Robinson, Chief, Air Permits Section (6PD-R),
Environmental Protection Agency, 1445 Ross Avenue, Suite 1200, Dallas,
Texas 75202-2733.
(6) Hand or Courier Delivery: Mr. Jeff Robinson, Chief, Air Permits
Section (6PD-R), Environmental Protection Agency, 1445 Ross Avenue,
Suite 1200, Dallas, Texas 75202-2733. Such deliveries are accepted only
between the hours of 8:30 a.m. and 4:30 p.m. weekdays except for legal
holidays. Special arrangements should be made for deliveries of boxed
information.
Instructions: Direct your comments to Docket ID No. EPA-R06-OAR-
2006-0849. 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 the
disclosure of which is restricted by statute. Do not submit information
through https://www.regulations.gov or e-mail, if you believe that it is
CBI or otherwise protected from disclosure. The https://
www.regulations.gov Web site is an ``anonymous access'' system, which
means that 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 https://
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 along with any disk or CD-ROM
submitted. 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 and any form of encryption and should be free of any
defects or viruses. For additional information about EPA's public
docket, visit the EPA Docket Center homepage at https://www.epa.gov/
epahome/dockets.htm.
Docket: All documents in the docket are listed in the https://
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
the disclosure of which is restricted by statute. Certain other
material, such as copyrighted material, will be publicly available only
in hard copy. Publicly available docket materials are available either
electronically in https://www.regulations.gov or in hard copy at the Air
Permits Section (6PD-R), Environmental Protection Agency, 1445 Ross
Avenue, Suite 700, Dallas, Texas 75202-2733. The file will be made
available by appointment for public inspection in the Region 6 FOIA
Review Room between the hours of 8:30 a.m. and 4:30 p.m. weekdays
except for legal holidays. Contact the person listed in the FOR FURTHER
INFORMATION CONTACT
[[Page 39742]]
paragraph below to make an appointment. If possible, please make the
appointment at least two working days in advance of your visit. A 15
cent per page fee will be charged for making photocopies of documents.
On the day of the visit, please check in at the EPA Region 6 reception
area on the seventh floor at 1445 Ross Avenue, Suite 700, Dallas,
Texas.
The State submittal related to this SIP revision, and which is part
of the EPA docket, is also available for public inspection at the State
Air Agency listed below during official business hours by appointment:
Louisiana Department of Environmental Quality, Office of
Environmental Quality Assessment, 602 N. Fifth Street, Baton Rouge,
Louisiana 70802.
FOR FURTHER INFORMATION CONTACT: If you have questions concerning
today's proposal, please contact Ms. Adina Wiley, Air Permits Section
(6PD-R), Environmental Protection Agency, Region 6, 1445 Ross Avenue,
Suite 1200, Dallas, TX 75202-2733. The telephone number is (214) 665-
2115. Ms. Wiley can also be reached via electronic mail at
wiley.adina@epa.gov.
SUPPLEMENTARY INFORMATION: Throughout this document wherever, any
reference to ``we,'' ``us,'' or ``our'' is used, we mean EPA.
Table of Contents
I. What Action Is EPA Taking?
II. What Is the Regulatory History of CAIR and the CAIR FIPs?
III. What Are the General Requirements of CAIR and the CAIR FIPs?
IV. What Are the Types of CAIR SIP Submittals?
V. What Is EPA's Analysis of the Louisiana CAIR SO2 SIP
Submittal?
A. State Budget for SO2 Allowance Allocations
B. CAIR SO2 Cap-and-Trade Program
C. Individual Opt-In Units
VI. Final Action
VII. Statutory and Executive Order Reviews
I. What Action Is EPA Taking?
EPA is taking direct final action to approve a revision to
Louisiana's SIP, submitted on September 22, 2006, enacted at Louisiana
Administrative Code, Title 33, Part III, Chapter 5, Section 506(C) (LAC
33:III.506(C)). In its SIP revision, Louisiana would meet CAIR
SO2 requirements by requiring certain electric generating
units (EGUs) to participate in the EPA-administered CAIR cap-and-trade
program addressing SO2 emissions. The SIP as revised that
EPA is approving meets the applicable requirements of CAIR. Our
detailed analysis of this SIP revision is in the Technical Support
Document (TSD) for the Louisiana CAIR SO2 Trading Program.
The TSD is available as specified in the section of this document
identified as ADDRESSES. As a consequence of the SIP approval, the
Administrator of EPA will also issue a final rule to withdraw the FIP
concerning SO2 emissions for Louisiana. This action will
delete and reserve 40 CFR 52.985 in part 52. The withdrawal of the CAIR
FIP for Louisiana is a conforming amendment that must be made once the
SIP is approved because EPA's authority to issue the FIP was premised
on a deficiency in the SIP for Louisiana. Once the SIP is fully
approved, EPA no longer has authority for the FIP. Thus, EPA will not
have the option of maintaining the FIP following the full SIP approval.
Accordingly, EPA does not intend to offer an opportunity for a public
hearing or an additional opportunity for written public comment on the
withdrawal of the FIP.
We are publishing this rule without prior proposal because we view
this as a noncontroversial amendment and anticipate no relevant adverse
comments. However, in the proposed rules section of this Federal
Register publication, we are publishing a separate document that will
serve as the proposal to approve the SIP revision if relevant adverse
comments are received. This rule will be effective on September 18,
2007 without further notice unless we receive relevant adverse comment
by August 20, 2007. If we receive relevant adverse comments, we will
publish a timely withdrawal in the Federal Register informing the
public that the rule will not take effect. We will address all public
comments in a subsequent final rule based on the proposed rule. We will
not institute a second comment period on this action. Any parties
interested in commenting must do so now. Please note that if we receive
adverse comment on an amendment, paragraph, or section of this rule and
if that provision may be severed from the remainder of the rule, we may
adopt as final those provisions of the rule that are not the subject of
an adverse comment.
II. What Is the Regulatory History of CAIR and the CAIR FIPs?
The Clean Air Interstate Rule (CAIR) was published by EPA on May
12, 2005 (70 FR 25162). In this rule, EPA determined that 28 States and
the District of Columbia contribute significantly to nonattainment and
interfere with maintenance of the national ambient air quality
standards (NAAQS) for fine particles (PM2.5) and /or 8-hour
ozone in downwind States in the eastern part of the country. As a
result, EPA required those upwind States to revise their SIPs to
include control measures that reduce emissions of SO2, which
is a precursor to PM2.5 formation, and/or NOX,
which is a precursor to both ozone and PM2.5 formation. For
jurisdictions that contribute significantly to downwind PM2.5
nonattainment, CAIR sets annual State-wide emission reduction
requirements (i.e., budgets) for SO2 and annual State-wide
emission reduction requirements for NOX. Similarly, for
jurisdictions that contribute significantly to 8-hour ozone
nonattainment, CAIR sets State-wide emission reduction requirements for
NOX for the ozone season (defined at 40 CFR 97.302 as May
1st to September 30th). Under CAIR, States may implement these
reduction requirements by participating in the EPA-administered cap-
and-trade programs or by adopting any other control measures. Louisiana
was found to significantly contribute to nonattainment of the
PM2.5 standard in Alabama and the 8-hour ozone standard in
Texas, resulting in Louisiana being subject to the SO2,
annual NOX, and ozone season NOX CAIR
requirements.
CAIR explains to subject States what must be included in SIPs to
address the requirements of section 110(a)(2)(D) of the Clean Air Act
(CAA) with regard to interstate transport with respect to the 8-hour
ozone and PM2.5 NAAQS. EPA made national findings, effective
on May 25, 2005, that the States had failed to submit SIPs meeting the
requirements of section 110(a)(2)(D). The SIPs were due in July 2000, 3
years after the promulgation of the 8-hour ozone and PM2.5
NAAQS. These findings started a 2-year clock for EPA to promulgate a
Federal Implementation Plan (FIP) to address the requirements of
section 110(a)(2)(D). Under CAA section 110(c)(1), EPA may issue a FIP
anytime after such findings are made and must do so within two years
unless a SIP revision correcting the deficiency is approved by EPA
before the FIP is promulgated.
On April 28, 2006, EPA promulgated CAIR FIPs for all States covered
by CAIR in order to ensure the emissions reductions required by CAIR
are achieved on schedule. See 40 CFR 52.35 and 52.36. Each CAIR State
is subject to the FIP until the State fully adopts, and EPA approves, a
SIP revision meeting the requirements of CAIR. The CAIR FIPs require
certain EGUs to participate in the EPA-administered CAIR
SO2, NOX annual, and NOX ozone season
trading programs, as appropriate, found at 40 CFR part 97. The CAIR
FIPs' SO2, NOX annual, and NOX ozone
season trading programs impose essentially the
[[Page 39743]]
same requirements as, and are integrated with, the respective CAIR SIP
trading programs. The integration of the CAIR FIP and SIP trading
programs means that these trading programs will work together to create
effectively a single trading program for each regulated pollutant
(SO2, NOX annual, and NOX ozone
season) in all States covered by the CAIR FIPs' or SIPs' trading
program for that pollutant. The CAIR FIPs also allow States to submit
abbreviated SIP revisions that, if approved by EPA, will automatically
replace or supplement certain CAIR FIP provisions, while the CAIR FIPs
remain in place for all other provisions.
On April 28, 2006, EPA published two additional CAIR-related final
rules that added the States of Delaware and New Jersey to the list of
States subject to CAIR for PM2.5 and announced EPA's final
decisions on reconsideration of five issues, without making any
substantive changes to the CAIR requirements. On December 13, 2006, EPA
published minor, non-substantive revisions that serve to clarify CAIR
and the CAIR FIPs.
III. What Are the General Requirements of CAIR and the CAIR FIPs?
CAIR establishes State-wide emission budgets for SO2 and
NOX and is to be implemented in two phases. The first phase
of NOX reductions starts in 2009 and continues through 2014,
while the first phase of SO2 reductions starts in 2010 and
continues through 2014. The second phase of reductions for both
NOX and SO2 starts in 2015 and continues
thereafter. CAIR requires States to implement the budgets by either:
(1) Requiring EGUs to participate in the EPA-administered cap-and-trade
programs; or (2) adopting other control measures of the State's
choosing and demonstrating that such control measures will result in
compliance with the applicable State SO2 and NOX
budgets.
The May 12, 2005 and April 28, 2006 CAIR rules provide model rules
that States must adopt (with certain limited changes, if desired) if
they want to participate in the EPA-administered trading programs. The
December 13, 2006, revisions to CAIR and the CAIR FIPs were non-
substantive and, therefore, do not affect EPA's evaluation of a State's
SIP revision.
With two exceptions, only States that choose to meet the
requirements of CAIR through methods that exclusively regulate EGUs are
allowed to participate in the EPA-administered trading programs. One
exception is for States that adopt the opt-in provisions of the model
rules to allow non-EGUs individually to opt into the EPA-administered
trading programs. The other exception is for States that include all
non-EGUs from their NOX SIP Call trading programs in their
CAIR NOX ozone season trading programs. Louisiana was not
subject to the NOX SIP Call requirements; therefore this
exception is not available to the State.
IV. What Are the Types of CAIR SIP Submittals?
States have the flexibility to choose the type of control measures
they will use to meet the requirements of CAIR. EPA anticipates that
most States will choose to meet the CAIR requirements by selecting an
option that requires EGUs to participate in the EPA-administered CAIR
cap-and-trade programs. For such States, EPA has provided two
approaches for submitting and obtaining approval for CAIR SIP
revisions. States may submit full SIP revisions that adopt the model
CAIR cap-and-trade rules. If approved, these SIP revisions will fully
replace the State's CAIR FIPs. Alternatively, States may submit
abbreviated SIP revisions. The provisions in the abbreviated SIP
revision, if approved into a State's SIP, will not replace that State's
CAIR FIP; however, the requirements for the CAIR FIPs at 40 CFR part 52
incorporate the provisions of the Federal CAIR trading programs in 40
CFR part 97. The Federal CAIR trading programs in 40 CFR part 97
provide that whenever EPA approves an abbreviated SIP revision, the
provisions in the abbreviated SIP revision will be used in place of or
in conjunction with, as appropriate, the corresponding provisions in 40
CFR part 97 of the State's CAIR FIP.
A State submitting a full SIP revision may either adopt regulations
that are substantively identical to the model rules or incorporate by
reference the model rules. CAIR provides that States may only make
limited changes to the model rules if the States want to participate in
the EPA-administered trading programs. A full SIP revision may change
the model rules only by altering their applicability and allowance
allocation provisions to:
(1) Include NOX SIP Call trading sources that are not
EGUs under CAIR in the CAIR NOX Ozone Season Trading
Program;
(2) Provide for State allocation of NOX annual or ozone
season allowances using a methodology chosen by the State;
(3) Provide for State allocation of NOX annual
allowances from the compliance supplement pool (CSP) using the State's
choice of allowed, alternative methodologies; or
(4) Allow units that are not otherwise CAIR units to opt
individually into the CAIR SO2, NOX Annual, or
NOX Ozone Season Trading Programs under the opt-in
provisions in the model rules.
EPA's authority to issue the CAIR FIPs was premised on the
deficiency of each State's SIP in addressing the CAIR requirements. EPA
will not have the option of maintaining the CAIR FIP following approval
of a full CAIR SIP revision. Therefore, an approved CAIR full SIP
revision will replace the CAIR FIP requirements for NOX
annual, NOX ozone season, or SO2 emissions, as
applicable, for that State.
V. What Is EPA's Analysis of the Louisiana CAIR SO2 SIP
Submittal?
A. State Budget for SO2 Allowance Allocations
The CAIR State SO2 budgets were derived by discounting
the tonnage of emissions authorized by annual allowance allocations
under the Acid Rain Program under title IV of the CAA. Under CAIR, each
allowance allocated in the Acid Rain Program for the years in Phase 1
of CAIR (2010 through 2014) authorizes 0.5 ton of SO2
emissions in the CAIR trading program, and each Acid Rain Program
allowance allocated for the years in Phase 2 of CAIR (2015 and
thereafter) authorizes 0.35 ton of SO2 emissions in the CAIR
trading program.
In today's action, EPA is approving Louisiana's SIP revision that
incorporates by reference the SO2 model trading rule as
satisfying the budget requirements of 40 CFR 51.124(e). At 40 CFR
51.124(o)(1) we explain that any State that incorporates by reference
the CAIR SO2 trading program at subparts AAA through HHH of
40 CFR part 96, meets the budget obligation under 40 CFR 51.124(e).
Therefore, Louisiana's SIP revision establishes the State CAIR
SO2 budgets as 59,948 tons of SO2 emissions for
2010-2014 and 41,963 tons of SO2 emissions in 2015 and
thereafter. Louisiana's SIP revision sets these SO2 budgets
as the total amount of allowances available for allocation for a given
year under the EPA-administered SO2 cap-and-trade program.
B. CAIR SO2 Cap-and-Trade Program
The provisions of the CAIR SO2 model rule are similar to
the provisions of the CAIR NOX annual and ozone season model
rules, which largely mirror the structure of the NOX SIP
Call model trading rule in 40 CFR part 96, subparts A through I.
However, the SO2 model rule is coordinated with the ongoing
Acid Rain SO2 cap-and-trade program under CAA title IV. The
SO2
[[Page 39744]]
model rule uses the title IV allowances for compliance, with each
allowance allocated for 2010-2014 authorizing only 0.50 ton of
emissions and each allowance allocated for 2015 and thereafter
authorizing only 0.35 ton of emissions. Banked title IV allowances
allocated for years before 2010 can be used at any time in the CAIR
SO2 cap-and-trade program, with each such allowance
authorizing 1 ton of emissions. Title IV allowances are to be freely
transferable among sources covered by the Acid Rain Program and sources
covered by the CAIR SO2 cap-and-trade program.
EPA also used the CAIR SO2 model trading rule as the
basis for the SO2 trading program in the CAIR FIPs. The CAIR
FIPs' trading rules are virtually identical to the CAIR model trading
rules, with changes made to account for federal rather than state
implementation. The CAIR model SO2 trading rules and the
respective CAIR FIPs' trading rules are designed to work together as an
integrated SO2 trading program.
In the September 22, 2006, SIP revision, Louisiana chooses to
implement its CAIR SO2 budgets by requiring EGUs to
participate in the EPA-administered cap-and-trade program for
SO2 emissions. Louisiana has adopted a full SIP revision
that incorporates by reference the CAIR model cap-and-trade rule for
SO2 emissions as published at 40 CFR part 96, subparts AAA-
HHH on July 1, 2005, and as revised at 70 FR 25162-25405, May 12, 2005,
and 71 FR 25162-25405, April 28, 2006. This SIP revision does not
include subpart III, CAIR SO2 Opt-in Units, and any
references to opt-in units. This SIP revision also does not include the
December 13, 2006, revisions to the SO2 trading rules in the
CAIR and CAIR FIPs.
C. Individual Opt-In Units
The opt-in provisions of the CAIR model trading rules allow certain
non-EGUs (i.e., boilers, combustion turbines, and other stationary
fossil-fuel-fired devices) that do not meet the applicability criteria
for a CAIR trading program to participate voluntarily in (i.e., opt
into) the CAIR trading program. A non-EGU may opt into one or more of
the CAIR trading programs. In order to qualify to opt into a CAIR
trading program, a unit must vent all emissions through a stack and be
able to meet monitoring, recordkeeping, and reporting requirements of
40 CFR part 75. The owners and operators seeking to opt a unit into a
CAIR trading program must apply for a CAIR opt-in permit. If the unit
is issued a CAIR opt-in permit, the unit becomes a CAIR unit, is
allocated allowances, and must meet the same allowance-holding and
emissions monitoring and reporting requirements as other units subject
to that CAIR trading program. The opt-in provisions provide for two
methodologies for allocating allowances for opt-in units, one
methodology that applies to opt-in units in general and a second
methodology that allocates allowances only to opt-in units that the
owners and operators intend to repower before January 1, 2015.
States have several options concerning the opt-in provisions.
States may adopt the CAIR opt-in provisions entirely or may adopt them
but exclude one of the methodologies for allocating allowances. States
may also decline to adopt the opt-in provisions.
Louisiana has chosen not to allow non-EGUs to opt into the CAIR
SO2 trading program. Louisiana incorporated by reference the
CAIR SO2 Trading Program, published at 40 CFR part 96,
subparts AAA-HHH on July 1, 2005, and as revised at 70 FR 25162-25405,
May 12, 2005, and 71 FR 25162-25405, April 28, 2006. This SIP revision
does not include subpart III, CAIR SO2 Opt-in Units, and any
references to opt-in units.
VI. Final Action
We are approving Louisiana's CAIR SO2 SIP revision
submitted on September 22, 2006, enacted at LAC 33:III.506(C). Under
this SIP revision, Louisiana is choosing to participate in the EPA-
administered cap-and-trade program for SO2 emissions. Our
technical analysis has shown that this SIP revision is consistent with
the requirements of 40 CFR part 51, including the specific CAIR
SO2 requirements at 40 CFR 51.124 as published on May 12,
2005, and further revised on April 28, 2006; and all applicable
requirements of the CAA. While we are approving the Louisiana CAIR
SO2 SIP as satisfying the CAIR SO2 requirements,
it is important to note that the Louisiana SIP revision does not
incorporate EPA's latest revisions to CAIR made on December 13, 2006,
and any future revisions. We understand that Louisiana will routinely
update its SIP to reflect this change and any future EPA actions on the
CAIR SO2 Trading Program.
As a consequence of this SIP approval, the Administrator of EPA
will also issue, without providing an opportunity for a public hearing
or an additional opportunity for written public comment, a final rule
to withdraw the CAIR FIP concerning SO2 emissions for
Louisiana. This action will delete and reserve 40 CFR 52.985 in part
52.
VII. Statutory and Executive Order Reviews
Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason and because this action will not have a significant, adverse
effect on the supply, distribution, or use of energy, this action is
also not subject to Executive Order 13211, ``Actions Concerning
Regulations That Significantly Affect Energy Supply, Distribution, or
Use'' (66 FR 28355, May 22, 2001). This action merely approves state
law as meeting Federal requirements and imposes no additional
requirements beyond those imposed by state law. Accordingly, the
Administrator certifies that this rule will not have a significant
economic impact on a substantial number of small entities under the
Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule
approves pre-existing requirements under state law and does not impose
any additional enforceable duty beyond that required by state law, it
does not contain any unfunded mandate or significantly or uniquely
affect small governments, as described in the Unfunded Mandates Reform
Act of 1995 (Pub. L. 104-4).
This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). This action also does not have Federalism
implications because it does 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 Executive Order 13132 (64
FR 43255, August 10, 1999). This action merely approves a state rule
implementing a Federal standard, and does not alter the relationship or
the distribution of power and responsibilities established in the Act.
The EPA interprets Executive Order 13045, ``Protection of Children from
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,
1997), as applying only to those regulatory actions that concern health
or safety risks such that the analysis required under section 5-501 of
the Executive
[[Page 39745]]
Order has the potential to influence the regulation. This rule is not
subject to Executive Order 13045 because it approves a state program.
Executive Order 12898 (59 FR 7629, February 16, 1994) establishes
federal executive policy on environmental justice. Because this rule
merely approves a state rule implementing a Federal standard, EPA lacks
the discretionary authority to modify today's regulatory decision on
the basis of environmental justice considerations.
In reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Act. In this
context, in the absence of a prior existing requirement for the State
to use voluntary consensus standards (VCS), EPA has no authority to
disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Act. Thus, the requirements of section
12(d) of the National Technology Transfer and Advancement Act of 1995
(15 U.S.C. 272 note) do not apply. This rule does not impose an
information collection burden under the provisions of the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States Court of Appeals for
the appropriate circuit by September 18, 2007. Filing a petition for
reconsideration by the Administrator of this final rule does not affect
the finality of this rule for the purposes of judicial review nor does
it extend the time within which a petition for judicial review may be
filed, and shall not postpone the effectiveness of such rule or action.
This action may not be challenged later in proceedings to enforce its
requirements. (See section 307(b)(2).)
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Ozone, Particulate matter, Reporting and
recordkeeping requirements, Sulfur oxides.
Dated: July 11, 2007.
Lawrence Starfield,
Acting Regional Administrator, EPA Region 6.
0
40 CFR part 52 is amended as follows:
PART 52--[AMENDED]
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart T--Louisiana
0
2. Section 52.970 is amended as follows:
0
a. In paragraph (c) the table entitled ``EPA Approved Louisiana
Regulations in the Louisiana SIP'' is amended under Chapter 5--Permit
Procedures, by adding in numerical order a new entry for ``Section
506(c)''.
0
b. In paragraph (e) the table entitled ``EPA Approved Louisiana
Nonregulatory Provisions and Quasi-Regulatory Measures'' is amended by
adding a new entry for the ``Clean Air Interstate Rule Sulfur Dioxide
Trading Program''.
Sec. 52.970 Identification of plan.
* * * * *
(c) * * *
EPA Approved Louisiana Regulations in the Louisiana SIP
----------------------------------------------------------------------------------------------------------------
State
State citation Title/subject approval EPA approval date Comments
date
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Chapter 5--Permit Procedures
----------------------------------------------------------------------------------------------------------------
* * * * * * *
Section 506(c)................... Clean Air Interstate 09/20/06 07/20/07, [Insert FR Sections 506(A),
Rule Requirements-- page number where (B), (D), and (E)
Annual Sulfur document begins]. NOT in SIP.
Dioxide.
* * * * * * *
----------------------------------------------------------------------------------------------------------------
* * * * *
(e) * * *
[[Page 39746]]
EPA Approved Louisiana Nonregulatory Provisions and Quasi-Regulatory Measures
----------------------------------------------------------------------------------------------------------------
Applicable EPA
Name of SIP provision geographic or State submittal date/ approval Explanation
nonattainment area effective date date
----------------------------------------------------------------------------------------------------------------
* * * * * * *
----------------------------------------------------------------------------------------------------------------
Clean Air Interstate Rule Sulfur Statewide........... 09/22/06............ 07/20/07, Acid Rain Program
Dioxide Trading Program. [Insert FR Provisions NOT in
page number SIP.
where
document
begins]
----------------------------------------------------------------------------------------------------------------
[FR Doc. E7-14068 Filed 7-19-07; 8:45 am]
BILLING CODE 6560-50-P
