Approval and Promulgation of Air Quality Implementation Plans; Massachusetts; State Implementation Plan Revision To Implement the Clean Air Interstate Rule, 41970-41975 [E7-14887]
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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Proposed Rules
Issued in Kansas City, Missouri, on July 26,
2007.
James E. Jackson,
Acting Manager, Small Airplane Directorate,
Aircraft Certification Service.
[FR Doc. E7–14857 Filed 7–31–07; 8:45 am]
BILLING CODE 4910–13–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R01–OAR–2007–0401; FRL–8448–3]
Approval and Promulgation of Air
Quality Implementation Plans;
Massachusetts; State Implementation
Plan Revision To Implement the Clean
Air Interstate Rule
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
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AGENCY:
SUMMARY: EPA is proposing to approve
a revision to the Massachusetts State
Implementation Plan (SIP) submitted on
March 30, 2007. This revision addresses
the requirements of EPA’s Clean Air
Interstate Rule (CAIR), promulgated on
May 12, 2005 and subsequently revised
on April 28, 2006 and December 13,
2006. EPA is proposing to determine
that the SIP revision fully implements
the CAIR requirements for
Massachusetts. Therefore, as a
consequence of the SIP approval, EPA
will also withdraw the CAIR Federal
Implementation Plan (CAIR FIP)
concerning NOX ozone-season
emissions for Massachusetts. The CAIR
FIPs for all States in the CAIR region
were promulgated on April 28, 2006 and
subsequently revised on December 13,
2006.
In the SIP revision that EPA is
proposing to approve, Massachusetts
would meet CAIR requirements by
participating in the EPA-administered
cap-and-trade program addressing NOX
ozone-season emissions.
Massachusetts’s SIP revision is based on
EPA’s model CAIR NOX ozone season
rule and is in most respects
substantively identical to that model
rule. The Massachusetts CAIR program
has two major substantive differences
from that model rule (expanded
applicability, and a different
methodology for allocating NOX
allowances), both of which are
consistent with the flexibility allowed
under CAIR for state participation in the
EPA-administered cap-and-trade
program. The SIP revision complies
with the statutory and regulatory
requirements for approval of a CAIR
NOX ozone-season program.
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Comments must be received on
or before August 31, 2007.
ADDRESSES: Submit your comments,
identified by FDMS Docket ID No. EPA–
R01–OAR–2007–0401, by one of the
following methods:
1. www.regulations.gov: Follow the
on-line instructions for submitting
comments.
2. E-mail: arnold.anne@epa.gov.
3. Fax: (617) 918–0047.
4. Mail: ‘‘FDMS Docket ID No. EPA–
R01–OAR–2007–0401’’, Anne Arnold,
U.S. Environmental Protection Agency,
EPA New England Regional Office, One
Congress Street, Suite 1100 (mail code
CAQ), Boston, MA 02114–2023.
5. Hand Delivery or Courier: Deliver
your comments to: Anne Arnold,
Manager, Air Quality Planning Unit,
Office of Ecosystem Protection, U.S.
Environmental Protection Agency, EPA
New England Regional Office, One
Congress Street, 11th floor, (CAQ),
Boston, MA 02114–2023. Such
deliveries are only accepted during the
Regional Office’s normal hours of
operation. The Regional Office’s official
hours of business are Monday through
Friday, 8:30 to 4:30, excluding federal
holidays.
Instructions: Direct your comments to
Docket ID No. ‘‘FDMS Docket ID No.
EPA–R01–OAR–2007–0401’’. 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 through
www.regulations.gov or e-mail,
information that you consider to be CBI
or otherwise protected. 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
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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
electronic 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. In addition to publicly available
docket materials available electronically
in www.regulations.gov, the hard copy
of these materials, including the state
submittal and EPA’s technical support
document, is available at the Office of
Ecosystem Protection, U.S.
Environmental Protection Agency, EPA
New England Regional Office, One
Congress Street, Suite 1100, Boston,
MA. EPA requests that if at all possible,
you contact the person listed in the FOR
FURTHER INFORMATION CONTACT section to
schedule your inspection. The Regional
Office’s official hours of business are
Monday through Friday, 8:30 to 4:30,
excluding federal holidays.
If
you have questions concerning today’s
proposal, please contact Alison C.
Simcox, Air Quality Planning Unit, U.S.
Environmental Protection Agency, EPA
New England Regional Office, One
Congress Street, Suite 1100 (CAQ),
Boston, MA 02114–2023, telephone
number (617) 918–1684, fax number
(617) 918–0684, e-mail
simcox.alison@epa.gov.
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What Action Is EPA Proposing to Take?
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. Analysis of Massachusetts’s CAIR SIP
Submittal
A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. Applicability Provisions for non-EGU
NOX SIP Call Sources
D. NOX Allowance Allocations
E. Individual Opt-in Units
VI. Proposed Action
VII. Statutory and Executive Order Reviews
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I. What Action Is EPA Proposing to
Take?
EPA is proposing to approve a
revision to Massachusetts’s SIP,
submitted on March 30, 2007. This SIP
revision includes a new regulation, 310
CMR 7.32, ‘‘Massachusetts Clean Air
Interstate Rule,’’ and amendments to
existing regulation 310 CMR 7.28, ‘‘NOX
Allowance Trading Program.’’ In its SIP
revision, Massachusetts would meet
CAIR requirements by requiring certain
electric generating units (EGUs) to
participate in the EPA-administered
State CAIR cap-and-trade program
addressing NOX ozone-season
emissions. EPA is proposing to
determine that the Massachusetts SIP as
revised will meet the applicable
requirements of CAIR. Any final action
approving the SIP will be taken by the
Regional Administrator for Region 1. As
a consequence of the SIP Approval, the
Administrator of EPA will also issue a
final rule to withdraw the FIP
concerning NOX ozone-season
emissions for Massachusetts. This
action will delete and reserve 40 CFR
52.1140. The withdrawal of the CAIR
FIP for Massachusetts 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 Massachusetts.
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.
II. What Is the Regulatory History of the
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
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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 (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.
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
FIPs for all States covered by CAIR in
order to ensure the emissions reductions
required by CAIR are achieved on
schedule. Each CAIR State is subject to
the FIPs until the State fully adopts, and
EPA approves, a SIP revision meeting
the requirements of CAIR. The CAIR
FIPs require EGUs to participate in the
EPA-administered CAIR SO2, NOX
annual, and NOX ozone season trading
programs, as appropriate. The CAIR FIP
SO2, NOX annual, and NOX ozone
season trading programs impose
essentially the same requirements as,
and are integrated with, the respective
CAIR SIP trading programs. The
integration of the 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 FIP or SIP
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 (e.g., the methodology for
allocating NOX allowances to sources in
the State), while the CAIR FIP remains
in place for all other provisions.
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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.
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.
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 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.
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
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SIP revisions will fully replace the CAIR
FIPs. Alternatively, States may submit
abbreviated SIP revisions. These SIP
revisions will not replace the CAIR FIPs;
however, the CAIR FIPs provide that,
when approved, the provisions in these
abbreviated SIP revisions will be used
instead of or in conjunction with, as
appropriate, the corresponding
provisions of the CAIR FIPs (e.g., the
NOX allowance allocation
methodology).
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 optin provisions in the model rules.
An approved CAIR full SIP revision
addressing EGUs’ SO2, NOX annual, or
NOX ozone season emissions will
replace the CAIR FIP for that State for
the respective EGU emissions.
historical heat input data for EGUs.
Using these data, EPA calculated annual
and ozone season regional heat input
values, which were multiplied by 0.15
pounds per million British thermal
units (lb/mmBtu), for phase 1 of the
CAIR program (2009–2014) and by 0.125
lb/mmBtu, for phase 2 of the CAIR
program (2015 and thereafter) to obtain
regional NOX budgets for 2009–2014
and for 2015 and thereafter,
respectively. EPA derived the State NOX
annual and ozone season budgets from
the regional budgets using State heat
input data adjusted by fuel factors.
Massachusetts, however, is only
required to participate in the CAIR NOX
ozone-season program, not the CAIR
NOX annual or SO2 trading programs.
Therefore, only CAIR NOX ozone-season
budgets apply to the Massachusetts
CAIR program.
In today’s action, EPA is proposing
approval of Massachusetts’s SIP revision
at 310 CMR 7.32. This SIP revision
adopts the budgets established for the
State in CAIR, i.e., 7,551 tons of NOX
ozone-season emissions for CAIR phase
1 and 6,293 tons for CAIR phase 2, plus
an additional 363 tons of NOX ozoneseason emissions for both phases 1 and
2 to account for NOX emissions from
‘‘non-EGU’’ units from the
Massachusetts NOX SIP Call trading
program (see section V.B. below). The
total NOX ozone-season budget is
therefore 7,914 tons of NOX ozoneseason emissions for CAIR phase 1 and
6,656 tons for CAIR phase 2.
Massachusetts’s SIP revision sets this
budget as the total number of
allowances (with each allowance
authorizing one ton of NOX ozoneseason emissions) available for
allocation for each year under the EPAadministered CAIR cap-and-trade
program.
V. Analysis of Massachusetts’s CAIR
SIP Submittal
A summary of EPA’s review of
Massachusetts’s CAIR program is given
below. Additional details regarding
requirements of Massachusetts’s 310
CMR 7.32 regulation and EPA’s
evaluation of this regulation are detailed
in a memorandum dated July 16, 2007,
entitled ‘‘Technical Support Document
(TSD) for revisions to the Massachusetts
SIP: 310 CMR 7.32 (‘‘Massachusetts
Clean Air Interstate Rule’’).’’ The TSD
and Massachusetts’s CAIR SIP submittal
are available in the docket supporting
this action.
B. CAIR Cap-and-Trade Programs
The CAIR NOX annual and ozoneseason model trading rules both largely
mirror the structure of the NOX SIP Call
model trading rule in 40 CFR part 96,
subparts A through I. While the
provisions of the NOX annual and
ozone-season model rules are similar,
there are some differences. For example,
the NOX ozone season model rule
reflects the fact that the CAIR NOX
ozone season trading program replaces
the NOX SIP Call trading program after
the 2008 ozone season and is
coordinated with the NOX SIP Call
program. The NOX ozone season model
rule provides incentives for early
emissions reductions by allowing
banked, pre-2009 NOX SIP Call
allowances to be used for compliance in
the CAIR NOX ozone-season trading
A. State Budgets for Allowance
Allocations
The CAIR NOX annual and ozone
season budgets were developed from
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program. In addition, States have the
option of continuing to meet their NOX
SIP Call requirement by participating in
the CAIR NOX ozone season trading
program and including all their NOX SIP
Call trading sources in that program.
Massachusetts has decided to exercise
the option of including all its NOX SIP
Call units in its State CAIR program.
Therefore, the Massachusetts CAIR SIP
revision includes amendments to the
Massachusetts NOX SIP Call trading
program (310 CMR 7.28) such that the
NOX SIP Call trading program applies
for the control periods from 2003
through 2008, but is then superseded by
the Massachusetts CAIR program (310
CMR 7.32) beginning with the control
period in 2009.
EPA also used the CAIR model
trading rules as the basis for the trading
programs in the CAIR FIPs. The CAIR
FIP 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, NOX annual, and NOX
ozone season trading rules and the
respective CAIR FIP trading rules are
designed to work together as integrated
SO2, NOX annual, and NOX ozone
season trading programs.
In the SIP revision, Massachusetts
chooses to implement its CAIR budgets
by requiring EGUs (as well as ‘‘nonEGUs’’ from its NOX SIP Call trading
program, as discussed below) to
participate in EPA-administered capand-trade programs for NOX ozoneseason emissions. Massachusetts has
adopted a full SIP revision that adopts,
with certain allowed changes discussed
below, the CAIR model cap-and-trade
rules for NOX ozone-season emissions.
C. Applicability Provisions for non-EGU
NOX SIP Call Sources
In general, the CAIR model trading
rules apply to any stationary, fossil-fuelfired boiler or stationary, fossil-fuelfired combustion turbine serving at any
time, since the later of November 15,
1990 or the start-up of the unit’s
combustion chamber, a generator with
nameplate capacity of more than 25
MWe producing electricity for sale.
States have the option of bringing in,
for the CAIR NOX ozone season program
only, those units in the State’s NOX SIP
Call trading program that are not EGUs
as defined under CAIR (herein called
‘‘non-EGUs’’). EPA advises States
exercising this option to add the
applicability provisions in the State’s
NOX SIP Call trading rule for ‘‘nonEGUs’’ to the applicability provisions in
40 CFR 96.304 in order to include in the
CAIR NOX ozone season trading
program all units required to be in the
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State’s NOX SIP Call trading program
that are not already included under 40
CFR 96.304. Under this option, the
CAIR NOX ozone-season program must
cover all large industrial boilers and
combustion turbines, as well as any
small EGUs (i.e. units serving a
generator with a nameplate capacity of
25 MWe or less) that the State currently
requires to be in the NOX SIP Call
trading program.
Massachusetts has chosen to expand
the applicability provisions of the CAIR
NOX ozone season trading program to
include all units in the State’s NOX SIP
Call trading program. Units in the
Massachusetts NOX SIP Call trading
program include units that burn more
than 50-percent fossil fuel and that have
a maximum heat-input capacity of 250
million British thermal units (MMBtu)
or more, or serve a generator with a
nameplate capacity of 15 MWe or more.
These units are included in the
Massachusetts NOX SIP Call trading
program whether or not they produce
electricity for sale, and, as noted above,
will be included in the Massachusetts
CAIR program beginning with the
control period in 2009.
EPA has determined that
Massachusetts 310 CMR 7.32 includes
the allowable CAIR applicability
provisions relating to adding all NOX
SIP Call trading program units to the
Massachusetts CAIR NOX ozone season
program.
D. NOX Allowance Allocations
Deadlines: There is one technical flaw
in the SIP revision, but EPA is
proposing to approve the SIP revision
despite this flaw. CAIR requires states to
submit to EPA the initial allocations for
EGUs that started operation before 2001
by October 31, 2006. Massachusetts’s
proposed SIP revision does not meet
this requirement, nor did the state
submit those allocations by this date.
However, the purpose of this date was
to allow EPA sufficient time to process
the allocations data. EPA now has the
allocations, and no outside party was
prejudiced by Massachusetts’s failure to
meet this date. The TSD associated with
this Notice of Proposed Rulemaking
explains this issue and EPA’s rationale
for proposing to approve the SIP
revision despite this technical flaw.
NOX allowance-allocation
methodology: Under the NOX
allowance-allocation methodology in
the CAIR model trading rules and in the
CAIR FIP, NOX annual and ozoneseason allowances are allocated to units
that have operated for five years (i.e.,
‘‘existing units’’), based on heat input
data from a three-year period that are
adjusted for fuel type by using fuel
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factors of 1.0 for coal, 0.6 for oil, and 0.4
for other fuels. The CAIR model trading
rules and the CAIR FIP also provide a
new unit set-aside from which units
without five years of operation are
allocated allowances based on the units’
prior year emissions.
States may establish in their SIP
submissions a different NOX allowanceallocation methodology that will be
used to allocate allowances to sources in
the States if certain requirements are
met concerning the timing of
submission of units’ allocations to the
Administrator for recordation and the
total amount of allowances allocated for
each control period. In adopting
alternative NOX allowance-allocation
methodologies, States have flexibility
with regard to:
1. The cost to recipients of the
allowances, which may be distributed
for free or auctioned;
2. The frequency of allocations;
3. The basis for allocating allowances,
which may be distributed, for example,
based on historical heat input or electric
and thermal output; and
4. The use of allowance set-asides
and, if used, their size.
Massachusetts has chosen to replace
the provisions of the CAIR NOX ozoneseason model trading rule concerning
allowance allocations with its own
methodology. Massachusetts’s 310 CMR
7.32 distributes NOX ozone-season
allowances based upon historical
electric and thermal output, rather than
heat input. Massachusetts also provides
a percentage of allowances for Public
Benefit and new unit set-asides.
(1) What Types of Set-Asides are
Included in Massachusetts CAIR?
Massachusetts 310 CMR 7.32 includes
both a Public Benefit set-aside (PBSA) to
encourage Energy Efficiency Projects
(EEPs) and Renewable Energy Projects
(REPs), and a new unit set-aside to
allow for addition of new units. Both of
these types of set-asides were included
in the State’s NOX SIP Call trading
program.
Massachusetts has set a new unit setaside at 5 percent of the State’s CAIR
budget for both phases of the CAIR
program. Therefore, the new unit setaside includes 396 CAIR NOX ozoneseason allowances during CAIR phase 1
(2009–2014), and 333 allowances during
CAIR phase 2 (2015 and thereafter).
Massachusetts has set a PBSA at 10
percent of the State’s CAIR budget for
both phases of the CAIR program.
Therefore, the PBSA includes 791 CAIR
NOX ozone-season allowances during
CAIR phase 1 (2009–2014), and 666
allowances during CAIR phase 2 (2015
and thereafter).
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(2) Banking and Transferring of SetAsides
The Massachusetts CAIR SIP
establishes an account for any
unallocated PBSA or new unit set-aside
allowances so that these can be
allocated in future years. This is similar
to the account established under the
State’s NOX SIP Call trading program. If
the number of banked set-aside
allowances is 10 percent or more of the
total Massachusetts CAIR budget after
allocations and compliance deductions
have been made for a given year, the
State will allocate allowances that
exceed 5 percent of the State’s CAIR
budget to existing CAIR NOX ozoneseason units using the allocation
methodology described below.
If Massachusetts approves the
allocation of more allowances for EEPs
and REPs than are available in the
PBSA, Massachusetts will allow transfer
of unallocated allowances from the new
unit set-aside to the PBSA. However,
allowances may not be transferred from
the PBSA to the new unit set-aside.
(3) Methodology for Allocating CAIR
Allowances
Massachusetts has chosen to replace
the provisions of the CAIR NOX ozoneseason model trading rule concerning
allowance allocations with a
methodology similar to that used in the
Massachusetts NOX SIP Call trading
program. This methodology, which is
based on energy output, allocates
allowances to existing units and, to the
extent possible, to new units based on
their steam and/or electricity output.
More details on Massachusetts’s
methodology for allocating CAIR
allowances can be found in the TSD
associated with this Notice of Proposed
Rulemaking.
(4) Massachusetts CAIR Permits and
Reporting Requirements
The Massachusetts CAIR SIP includes
most of the permitting provisions of the
CAIR model rule. Massachusetts,
however, has modified the rule as it
applies to collection of output data and
also requires all Massachusetts CAIR
units to have Massachusetts CAIR
permits.
Under the CAIR model rule, facilities
that are subject to the Acid Rain
Program or the CAIR NOX and SO2
annual trading programs must report
emissions data year-round, but facilities
that are only subject to the NOX ozoneseason trading program need only
submit NOX emission data to the State
during the ozone season. As noted
above, Massachusetts is only required to
participate in the CAIR NOX ozone-
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season program. However, under
Massachusetts’s CAIR NOX ozone
season allowance trading program, all
units recording NOX emissions data
with Continuous Emission Monitoring
Systems (CEMS) are required to submit
quarterly data emission reports yearround.
Because of the importance to
Massachusetts of obtaining emissions
data for air-quality planning efforts
related to EPA’s programs to address
Regional Haze and Particulate Matter
(PM), which are both year-round airquality issues, Massachusetts has
decided to require that all of the State’s
CAIR units with CEMS report NOX
emissions to the State on a year-round
basis. Massachusetts will not require
units without CEMS to report emissions
on a year-round basis. EPA has
determined that these modifications of
the CAIR NOX ozone-season trading rule
in regard to collection of output data
and CAIR permits are acceptable.
E. Individual Opt-in Units
The opt-in provisions of the CAIR SIP
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
recording 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 the 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 at all.
The Massachusetts CAIR SIP does not
include opt-in provisions because the
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State has chosen to allocate CAIR
allowances using an energy-output
methodology that cannot be used for
opt-in sources under the model CAIR
NOX ozone-season trading rule. The
Massachusetts NOX SIP Call trading
program (310 CMR 7.28), however, does
allow for opt-in sources (although no
sources have opted into this program to
date). Therefore, sources that wish to be
part of the Massachusetts CAIR program
can take advantage of the opt-in
provisions of the State’s NOX SIP Call
program until the end of 2008.
Beginning with the 2009 ozone
season, the NOX SIP Call program will
be replaced by the State’s CAIR
Program, and no further opt-in units
will be allowed.
VI. Proposed Action
EPA is proposing to approve
Massachusetts’s full CAIR SIP revision
submitted on March 30, 2007, including
regulations 310 CMR 7.32
(‘‘Massachusetts CAIR’’) and
amendments to 310 CMR 7.28 (‘‘NOX
Allocation Trading Program’’). Under
this SIP revision, Massachusetts is
choosing to participate in the EPAadministered cap-and-trade program for
NOX ozone-season emissions. The SIP
revision meets the applicable
requirements in 40 CFR 51.123(aa) with
regard to NOX ozone-season emissions.
EPA is proposing to determine that the
SIP as revised will meet the
requirements of CAIR. As a consequence
of the 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 NOX
ozone-season emissions for
Massachusetts. This action will delete
and reserve 40 CFR section 52.1140 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, 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 proposes
to approve State law as meeting Federal
requirements and would impose no
additional requirements beyond those
imposed by State law. Accordingly, the
Administrator certifies that this
proposed rule would not have a
significant economic impact on a
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substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.). Because this action
proposes to approve pre-existing
requirements under State law and
would 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 proposal also does not have
tribal implications because it would 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
proposed action also does not have
Federalism implications because it
would 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 proposes to approve a State rule
implementing a Federal standard and
will result, as a consequence of that
approval, in the Administrator’s
withdrawal of the CAIR FIP. It does not
alter the relationship or the distribution
of power and responsibilities
established in the Clean Air Act. This
proposed rule also is not subject to
Executive Order 13045 ‘‘Protection of
Children from Environmental Health
Risks and Safety Risks’’ (62 FR 19885,
April 23, 1997), because it would
approve a State rule implementing a
Federal Standard.
In reviewing SIP submissions, EPA’s
role is to approve State choices,
provided that they meet the criteria of
the Clean Air 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 Clean Air 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
proposed rule would not impose an
information collection burden under the
provisions of the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.).
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Federal Register / Vol. 72, No. 147 / Wednesday, August 1, 2007 / Proposed Rules
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 24, 2007.
Robert W. Varney,
Regional Administrator, EPA New England.
[FR Doc. E7–14887 Filed 7–31–07; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R09–OAR–2007–0462; FRL–8442–5]
Revisions to the California State
Implementation Plan, Sacramento
Metropolitan Air Quality Management
District and San Joaquin Valley Air
Pollution Control District
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing to approve
revisions to the Sacramento
Metropolitan Air Quality Management
District (SMAQMD) and San Joaquin
Valley Air Pollution Control District
(SJVAPCD) portions of the California
State Implementation Plan (SIP). These
revisions concern oxides of nitrogen
(NOX) emissions from boilers, process
heaters, steam generators, and glass
melting furnaces. We are proposing to
approve local rules to regulate these
emission sources under the Clean Air
Act as amended in 1990 (CAA or the
Act).
Any comments on this proposal
must arrive by August 31, 2007.
ADDRESSES: Submit comments,
identified by docket number EPA–R09OAR–2007–0462, by one of the
following methods:
1. Federal eRulemaking Portal:
https://www.regulations.gov. Follow the
on-line instructions.
2. E-mail: steckel.andrew@epa.gov.
3. Mail or deliver: Andrew Steckel
(Air-4), U.S. Environmental Protection
Agency Region IX, 75 Hawthorne Street,
San Francisco, CA 94105–3901.
Instructions: All comments 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
Confidential Business Information (CBI)
or other information whose disclosure is
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restricted by statute. Information that
you consider CBI or otherwise protected
should be clearly identified as such and
should not be submitted through
https://www.regulations.gov or e-mail.
https://www.regulations.gov is an
‘‘anonymous access’’ system, and EPA
will not know your identity or contact
information unless you provide it in the
body of your comment. If you send email directly to EPA, your e-mail
address will be automatically captured
and included as part of the public
comment. 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.
Docket: The index to the docket for
this action is available electronically at
https://www.regulations.gov and in hard
copy at EPA Region IX, 75 Hawthorne
Street, San Francisco, California. While
all documents in the docket are listed in
the index, some information may be
publicly available only at the hard copy
location (e.g., copyrighted material), and
some may not be publicly available in
either location (e.g., CBI). To inspect the
hard copy materials, please schedule an
appointment during normal business
hours with the contact listed in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT:
´˜
Francisco Donez, EPA Region IX, (415)
972–3956, Donez.Francisco@epa.gov.
This
proposal addresses the following local
rules: SMAQMD 411 and SJVAPCD
4354. In the Rules and Regulations
section of this Federal Register, we are
approving these local rules in a direct
final action without prior proposal
because we believe these SIP revisions
are not controversial. If we receive
adverse comments, however, we will
publish a timely withdrawal of the
direct final rule and address the
comments in subsequent action based
on this proposed rule. 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.
We do not plan to open a second
comment period, so anyone interested
in commenting should do so at this
time. If we do not receive adverse
comments, no further activity is
planned. For further information, please
see the direct final action.
SUPPLEMENTARY INFORMATION:
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41975
Dated: June 20, 2007.
Jane Diamond,
Acting Regional Administrator, Region IX.
[FR Doc. E7–14587 Filed 7–31–07; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R07–OAR–2007–0477; FRL–8448–4]
Approval and Promulgation of
Implementation Plans; State of Iowa
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA proposes to approve the
State Implementation Plan (SIP)
revision submitted by the state of Iowa
for maintenance of the sulfur dioxide
National Ambient Air Quality Standard
in Muscatine, Iowa.
DATES: Comments on this proposed
action must be received in writing by
August 31, 2007.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R07–
OAR–2007–0477 by one of the following
methods:
1. https://www.regulations.gov: Follow
the on-line instructions for submitting
comments.
2. E-mail: Hamilton.heather@epa.gov.
3. Mail: Heather Hamilton,
Environmental Protection Agency, Air
Planning and Development Branch, 901
North 5th Street, Kansas City, Kansas
66101.
4. Hand Delivery or Courier: Deliver
your comments to: Heather Hamilton,
Environmental Protection Agency, Air
Planning and Development Branch, 901
North 5th Street, Kansas City, Kansas
66101. Such deliveries are only
accepted during the Regional Office’s
normal hours of operation. The Regional
Office’s official hours of business are
Monday through Friday, 8 to 4:30,
excluding legal holidays.
Please see the direct final rule which
is located in the Rules section of this
Federal Register for detailed
instructions on how to submit
comments.
FOR FURTHER INFORMATION CONTACT:
Heather Hamilton at (913) 551–7039, or
by e-mail at Hamilton.heather@epa.gov.
SUPPLEMENTARY INFORMATION: In the
final rules section of the Federal
Register, EPA is approving the state’s
SIP revision as a direct final rule
without prior proposal because the
Agency views this as a noncontroversial
revision amendment and anticipates no
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]]>Agencies
[Federal Register Volume 72, Number 147 (Wednesday, August 1, 2007)]
[Proposed Rules]
[Pages 41970-41975]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-14887]
=======================================================================
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R01-OAR-2007-0401; FRL-8448-3]
Approval and Promulgation of Air Quality Implementation Plans;
Massachusetts; State Implementation Plan Revision To Implement the
Clean Air Interstate Rule
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: EPA is proposing to approve a revision to the Massachusetts
State Implementation Plan (SIP) submitted on March 30, 2007. This
revision addresses the requirements of EPA's Clean Air Interstate Rule
(CAIR), promulgated on May 12, 2005 and subsequently revised on April
28, 2006 and December 13, 2006. EPA is proposing to determine that the
SIP revision fully implements the CAIR requirements for Massachusetts.
Therefore, as a consequence of the SIP approval, EPA will also withdraw
the CAIR Federal Implementation Plan (CAIR FIP) concerning
NOX ozone-season emissions for Massachusetts. The CAIR FIPs
for all States in the CAIR region were promulgated on April 28, 2006
and subsequently revised on December 13, 2006.
In the SIP revision that EPA is proposing to approve, Massachusetts
would meet CAIR requirements by participating in the EPA-administered
cap-and-trade program addressing NOX ozone-season emissions.
Massachusetts's SIP revision is based on EPA's model CAIR
NOX ozone season rule and is in most respects substantively
identical to that model rule. The Massachusetts CAIR program has two
major substantive differences from that model rule (expanded
applicability, and a different methodology for allocating
NOX allowances), both of which are consistent with the
flexibility allowed under CAIR for state participation in the EPA-
administered cap-and-trade program. The SIP revision complies with the
statutory and regulatory requirements for approval of a CAIR
NOX ozone-season program.
DATES: Comments must be received on or before August 31, 2007.
ADDRESSES: Submit your comments, identified by FDMS Docket ID No. EPA-
R01-OAR-2007-0401, by one of the following methods:
1. www.regulations.gov: Follow the on-line instructions for
submitting comments.
2. E-mail: arnold.anne@epa.gov.
3. Fax: (617) 918-0047.
4. Mail: ``FDMS Docket ID No. EPA-R01-OAR-2007-0401'', Anne Arnold,
U.S. Environmental Protection Agency, EPA New England Regional Office,
One Congress Street, Suite 1100 (mail code CAQ), Boston, MA 02114-2023.
5. Hand Delivery or Courier: Deliver your comments to: Anne Arnold,
Manager, Air Quality Planning Unit, Office of Ecosystem Protection,
U.S. Environmental Protection Agency, EPA New England Regional Office,
One Congress Street, 11th floor, (CAQ), Boston, MA 02114-2023. Such
deliveries are only accepted during the Regional Office's normal hours
of operation. The Regional Office's official hours of business are
Monday through Friday, 8:30 to 4:30, excluding federal holidays.
Instructions: Direct your comments to Docket ID No. ``FDMS Docket
ID No. EPA-R01-OAR-2007-0401''. 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
through www.regulations.gov or e-mail, information that you consider to
be CBI or otherwise protected. 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 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 electronic 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. In addition to publicly
available docket materials available electronically in
www.regulations.gov, the hard copy of these materials, including the
state submittal and EPA's technical support document, is available at
the Office of Ecosystem Protection, U.S. Environmental Protection
Agency, EPA New England Regional Office, One Congress Street, Suite
1100, Boston, MA. EPA requests that if at all possible, you contact the
person listed in the FOR FURTHER INFORMATION CONTACT section to
schedule your inspection. The Regional Office's official hours of
business are Monday through Friday, 8:30 to 4:30, excluding federal
holidays.
FOR FURTHER INFORMATION CONTACT: If you have questions concerning
today's proposal, please contact Alison C. Simcox, Air Quality Planning
Unit, U.S. Environmental Protection Agency, EPA New England Regional
Office, One Congress Street, Suite 1100 (CAQ), Boston, MA 02114-2023,
telephone number (617) 918-1684, fax number (617) 918-0684, e-mail
simcox.alison@epa.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What Action Is EPA Proposing to Take?
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. Analysis of Massachusetts's CAIR SIP Submittal
A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. Applicability Provisions for non-EGU NOX SIP Call
Sources
D. NOX Allowance Allocations
E. Individual Opt-in Units
VI. Proposed Action
VII. Statutory and Executive Order Reviews
[[Page 41971]]
I. What Action Is EPA Proposing to Take?
EPA is proposing to approve a revision to Massachusetts's SIP,
submitted on March 30, 2007. This SIP revision includes a new
regulation, 310 CMR 7.32, ``Massachusetts Clean Air Interstate Rule,''
and amendments to existing regulation 310 CMR 7.28, ``NOX
Allowance Trading Program.'' In its SIP revision, Massachusetts would
meet CAIR requirements by requiring certain electric generating units
(EGUs) to participate in the EPA-administered State CAIR cap-and-trade
program addressing NOX ozone-season emissions. EPA is
proposing to determine that the Massachusetts SIP as revised will meet
the applicable requirements of CAIR. Any final action approving the SIP
will be taken by the Regional Administrator for Region 1. As a
consequence of the SIP Approval, the Administrator of EPA will also
issue a final rule to withdraw the FIP concerning NOX ozone-
season emissions for Massachusetts. This action will delete and reserve
40 CFR 52.1140. The withdrawal of the CAIR FIP for Massachusetts 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 Massachusetts. 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.
II. What Is the Regulatory History of the 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 (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.
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 FIPs for all States covered by
CAIR in order to ensure the emissions reductions required by CAIR are
achieved on schedule. Each CAIR State is subject to the FIPs until the
State fully adopts, and EPA approves, a SIP revision meeting the
requirements of CAIR. The CAIR FIPs require EGUs to participate in the
EPA-administered CAIR SO2, NOX annual, and
NOX ozone season trading programs, as appropriate. The CAIR
FIP SO2, NOX annual, and NOX ozone
season trading programs impose essentially the same requirements as,
and are integrated with, the respective CAIR SIP trading programs. The
integration of the 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 FIP or SIP 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 (e.g., the methodology for allocating
NOX allowances to sources in the State), while the CAIR FIP
remains 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.
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.
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.
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
[[Page 41972]]
SIP revisions will fully replace the CAIR FIPs. Alternatively, States
may submit abbreviated SIP revisions. These SIP revisions will not
replace the CAIR FIPs; however, the CAIR FIPs provide that, when
approved, the provisions in these abbreviated SIP revisions will be
used instead of or in conjunction with, as appropriate, the
corresponding provisions of the CAIR FIPs (e.g., the NOX
allowance allocation methodology).
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.
An approved CAIR full SIP revision addressing EGUs' SO2,
NOX annual, or NOX ozone season emissions will
replace the CAIR FIP for that State for the respective EGU emissions.
V. Analysis of Massachusetts's CAIR SIP Submittal
A summary of EPA's review of Massachusetts's CAIR program is given
below. Additional details regarding requirements of Massachusetts's 310
CMR 7.32 regulation and EPA's evaluation of this regulation are
detailed in a memorandum dated July 16, 2007, entitled ``Technical
Support Document (TSD) for revisions to the Massachusetts SIP: 310 CMR
7.32 (``Massachusetts Clean Air Interstate Rule'').'' The TSD and
Massachusetts's CAIR SIP submittal are available in the docket
supporting this action.
A. State Budgets for Allowance Allocations
The CAIR NOX annual and ozone season budgets were
developed from historical heat input data for EGUs. Using these data,
EPA calculated annual and ozone season regional heat input values,
which were multiplied by 0.15 pounds per million British thermal units
(lb/mmBtu), for phase 1 of the CAIR program (2009-2014) and by 0.125
lb/mmBtu, for phase 2 of the CAIR program (2015 and thereafter) to
obtain regional NOX budgets for 2009-2014 and for 2015 and
thereafter, respectively. EPA derived the State NOX annual
and ozone season budgets from the regional budgets using State heat
input data adjusted by fuel factors. Massachusetts, however, is only
required to participate in the CAIR NOX ozone-season
program, not the CAIR NOX annual or SO2 trading
programs. Therefore, only CAIR NOX ozone-season budgets
apply to the Massachusetts CAIR program.
In today's action, EPA is proposing approval of Massachusetts's SIP
revision at 310 CMR 7.32. This SIP revision adopts the budgets
established for the State in CAIR, i.e., 7,551 tons of NOX
ozone-season emissions for CAIR phase 1 and 6,293 tons for CAIR phase
2, plus an additional 363 tons of NOX ozone-season emissions
for both phases 1 and 2 to account for NOX emissions from
``non-EGU'' units from the Massachusetts NOX SIP Call
trading program (see section V.B. below). The total NOX
ozone-season budget is therefore 7,914 tons of NOX ozone-
season emissions for CAIR phase 1 and 6,656 tons for CAIR phase 2.
Massachusetts's SIP revision sets this budget as the total number of
allowances (with each allowance authorizing one ton of NOX
ozone-season emissions) available for allocation for each year under
the EPA-administered CAIR cap-and-trade program.
B. CAIR Cap-and-Trade Programs
The CAIR NOX annual and ozone-season model trading rules
both largely mirror the structure of the NOX SIP Call model
trading rule in 40 CFR part 96, subparts A through I. While the
provisions of the NOX annual and ozone-season model rules
are similar, there are some differences. For example, the
NOX ozone season model rule reflects the fact that the CAIR
NOX ozone season trading program replaces the NOX
SIP Call trading program after the 2008 ozone season and is coordinated
with the NOX SIP Call program. The NOX ozone
season model rule provides incentives for early emissions reductions by
allowing banked, pre-2009 NOX SIP Call allowances to be used
for compliance in the CAIR NOX ozone-season trading program.
In addition, States have the option of continuing to meet their
NOX SIP Call requirement by participating in the CAIR
NOX ozone season trading program and including all their
NOX SIP Call trading sources in that program. Massachusetts
has decided to exercise the option of including all its NOX
SIP Call units in its State CAIR program. Therefore, the Massachusetts
CAIR SIP revision includes amendments to the Massachusetts
NOX SIP Call trading program (310 CMR 7.28) such that the
NOX SIP Call trading program applies for the control periods
from 2003 through 2008, but is then superseded by the Massachusetts
CAIR program (310 CMR 7.32) beginning with the control period in 2009.
EPA also used the CAIR model trading rules as the basis for the
trading programs in the CAIR FIPs. The CAIR FIP 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, NOX annual, and NOX ozone season
trading rules and the respective CAIR FIP trading rules are designed to
work together as integrated SO2, NOX annual, and
NOX ozone season trading programs.
In the SIP revision, Massachusetts chooses to implement its CAIR
budgets by requiring EGUs (as well as ``non-EGUs'' from its
NOX SIP Call trading program, as discussed below) to
participate in EPA-administered cap-and-trade programs for
NOX ozone-season emissions. Massachusetts has adopted a full
SIP revision that adopts, with certain allowed changes discussed below,
the CAIR model cap-and-trade rules for NOX ozone-season
emissions.
C. Applicability Provisions for non-EGU NOX SIP Call Sources
In general, the CAIR model trading rules apply to any stationary,
fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion
turbine serving at any time, since the later of November 15, 1990 or
the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe producing electricity for sale.
States have the option of bringing in, for the CAIR NOX
ozone season program only, those units in the State's NOX
SIP Call trading program that are not EGUs as defined under CAIR
(herein called ``non-EGUs''). EPA advises States exercising this option
to add the applicability provisions in the State's NOX SIP
Call trading rule for ``non-EGUs'' to the applicability provisions in
40 CFR 96.304 in order to include in the CAIR NOX ozone
season trading program all units required to be in the
[[Page 41973]]
State's NOX SIP Call trading program that are not already
included under 40 CFR 96.304. Under this option, the CAIR
NOX ozone-season program must cover all large industrial
boilers and combustion turbines, as well as any small EGUs (i.e. units
serving a generator with a nameplate capacity of 25 MWe or less) that
the State currently requires to be in the NOX SIP Call
trading program.
Massachusetts has chosen to expand the applicability provisions of
the CAIR NOX ozone season trading program to include all
units in the State's NOX SIP Call trading program. Units in
the Massachusetts NOX SIP Call trading program include units
that burn more than 50-percent fossil fuel and that have a maximum
heat-input capacity of 250 million British thermal units (MMBtu) or
more, or serve a generator with a nameplate capacity of 15 MWe or more.
These units are included in the Massachusetts NOX SIP Call
trading program whether or not they produce electricity for sale, and,
as noted above, will be included in the Massachusetts CAIR program
beginning with the control period in 2009.
EPA has determined that Massachusetts 310 CMR 7.32 includes the
allowable CAIR applicability provisions relating to adding all
NOX SIP Call trading program units to the Massachusetts CAIR
NOX ozone season program.
D. NOX Allowance Allocations
Deadlines: There is one technical flaw in the SIP revision, but EPA
is proposing to approve the SIP revision despite this flaw. CAIR
requires states to submit to EPA the initial allocations for EGUs that
started operation before 2001 by October 31, 2006. Massachusetts's
proposed SIP revision does not meet this requirement, nor did the state
submit those allocations by this date. However, the purpose of this
date was to allow EPA sufficient time to process the allocations data.
EPA now has the allocations, and no outside party was prejudiced by
Massachusetts's failure to meet this date. The TSD associated with this
Notice of Proposed Rulemaking explains this issue and EPA's rationale
for proposing to approve the SIP revision despite this technical flaw.
NOX allowance-allocation methodology: Under the
NOX allowance-allocation methodology in the CAIR model
trading rules and in the CAIR FIP, NOX annual and ozone-
season allowances are allocated to units that have operated for five
years (i.e., ``existing units''), based on heat input data from a
three-year period that are adjusted for fuel type by using fuel factors
of 1.0 for coal, 0.6 for oil, and 0.4 for other fuels. The CAIR model
trading rules and the CAIR FIP also provide a new unit set-aside from
which units without five years of operation are allocated allowances
based on the units' prior year emissions.
States may establish in their SIP submissions a different
NOX allowance-allocation methodology that will be used to
allocate allowances to sources in the States if certain requirements
are met concerning the timing of submission of units' allocations to
the Administrator for recordation and the total amount of allowances
allocated for each control period. In adopting alternative
NOX allowance-allocation methodologies, States have
flexibility with regard to:
1. The cost to recipients of the allowances, which may be
distributed for free or auctioned;
2. The frequency of allocations;
3. The basis for allocating allowances, which may be distributed,
for example, based on historical heat input or electric and thermal
output; and
4. The use of allowance set-asides and, if used, their size.
Massachusetts has chosen to replace the provisions of the CAIR
NOX ozone-season model trading rule concerning allowance
allocations with its own methodology. Massachusetts's 310 CMR 7.32
distributes NOX ozone-season allowances based upon
historical electric and thermal output, rather than heat input.
Massachusetts also provides a percentage of allowances for Public
Benefit and new unit set-asides.
(1) What Types of Set-Asides are Included in Massachusetts CAIR?
Massachusetts 310 CMR 7.32 includes both a Public Benefit set-aside
(PBSA) to encourage Energy Efficiency Projects (EEPs) and Renewable
Energy Projects (REPs), and a new unit set-aside to allow for addition
of new units. Both of these types of set-asides were included in the
State's NOX SIP Call trading program.
Massachusetts has set a new unit set-aside at 5 percent of the
State's CAIR budget for both phases of the CAIR program. Therefore, the
new unit set-aside includes 396 CAIR NOX ozone-season
allowances during CAIR phase 1 (2009-2014), and 333 allowances during
CAIR phase 2 (2015 and thereafter).
Massachusetts has set a PBSA at 10 percent of the State's CAIR
budget for both phases of the CAIR program. Therefore, the PBSA
includes 791 CAIR NOX ozone-season allowances during CAIR
phase 1 (2009-2014), and 666 allowances during CAIR phase 2 (2015 and
thereafter).
(2) Banking and Transferring of Set-Asides
The Massachusetts CAIR SIP establishes an account for any
unallocated PBSA or new unit set-aside allowances so that these can be
allocated in future years. This is similar to the account established
under the State's NOX SIP Call trading program. If the
number of banked set-aside allowances is 10 percent or more of the
total Massachusetts CAIR budget after allocations and compliance
deductions have been made for a given year, the State will allocate
allowances that exceed 5 percent of the State's CAIR budget to existing
CAIR NOX ozone-season units using the allocation methodology
described below.
If Massachusetts approves the allocation of more allowances for
EEPs and REPs than are available in the PBSA, Massachusetts will allow
transfer of unallocated allowances from the new unit set-aside to the
PBSA. However, allowances may not be transferred from the PBSA to the
new unit set-aside.
(3) Methodology for Allocating CAIR Allowances
Massachusetts has chosen to replace the provisions of the CAIR
NOX ozone-season model trading rule concerning allowance
allocations with a methodology similar to that used in the
Massachusetts NOX SIP Call trading program. This
methodology, which is based on energy output, allocates allowances to
existing units and, to the extent possible, to new units based on their
steam and/or electricity output. More details on Massachusetts's
methodology for allocating CAIR allowances can be found in the TSD
associated with this Notice of Proposed Rulemaking.
(4) Massachusetts CAIR Permits and Reporting Requirements
The Massachusetts CAIR SIP includes most of the permitting
provisions of the CAIR model rule. Massachusetts, however, has modified
the rule as it applies to collection of output data and also requires
all Massachusetts CAIR units to have Massachusetts CAIR permits.
Under the CAIR model rule, facilities that are subject to the Acid
Rain Program or the CAIR NOX and SO2 annual
trading programs must report emissions data year-round, but facilities
that are only subject to the NOX ozone-season trading
program need only submit NOX emission data to the State
during the ozone season. As noted above, Massachusetts is only required
to participate in the CAIR NOX ozone-
[[Page 41974]]
season program. However, under Massachusetts's CAIR NOX
ozone season allowance trading program, all units recording
NOX emissions data with Continuous Emission Monitoring
Systems (CEMS) are required to submit quarterly data emission reports
year-round.
Because of the importance to Massachusetts of obtaining emissions
data for air-quality planning efforts related to EPA's programs to
address Regional Haze and Particulate Matter (PM), which are both year-
round air-quality issues, Massachusetts has decided to require that all
of the State's CAIR units with CEMS report NOX emissions to
the State on a year-round basis. Massachusetts will not require units
without CEMS to report emissions on a year-round basis. EPA has
determined that these modifications of the CAIR NOX ozone-
season trading rule in regard to collection of output data and CAIR
permits are acceptable.
E. Individual Opt-in Units
The opt-in provisions of the CAIR SIP 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
recording 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 the 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 at all.
The Massachusetts CAIR SIP does not include opt-in provisions
because the State has chosen to allocate CAIR allowances using an
energy-output methodology that cannot be used for opt-in sources under
the model CAIR NOX ozone-season trading rule. The
Massachusetts NOX SIP Call trading program (310 CMR 7.28),
however, does allow for opt-in sources (although no sources have opted
into this program to date). Therefore, sources that wish to be part of
the Massachusetts CAIR program can take advantage of the opt-in
provisions of the State's NOX SIP Call program until the end
of 2008.
Beginning with the 2009 ozone season, the NOX SIP Call
program will be replaced by the State's CAIR Program, and no further
opt-in units will be allowed.
VI. Proposed Action
EPA is proposing to approve Massachusetts's full CAIR SIP revision
submitted on March 30, 2007, including regulations 310 CMR 7.32
(``Massachusetts CAIR'') and amendments to 310 CMR 7.28
(``NOX Allocation Trading Program''). Under this SIP
revision, Massachusetts is choosing to participate in the EPA-
administered cap-and-trade program for NOX ozone-season
emissions. The SIP revision meets the applicable requirements in 40 CFR
51.123(aa) with regard to NOX ozone-season emissions. EPA is
proposing to determine that the SIP as revised will meet the
requirements of CAIR. As a consequence of the 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
NOX ozone-season emissions for Massachusetts. This action
will delete and reserve 40 CFR section 52.1140 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, 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 proposes to approve State law as meeting Federal requirements
and would impose no additional requirements beyond those imposed by
State law. Accordingly, the Administrator certifies that this proposed
rule would 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 action proposes to approve pre-existing
requirements under State law and would 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 proposal also does not have tribal implications because it
would 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 proposed action also
does not have Federalism implications because it would 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 proposes to approve a State rule implementing a Federal
standard and will result, as a consequence of that approval, in the
Administrator's withdrawal of the CAIR FIP. It does not alter the
relationship or the distribution of power and responsibilities
established in the Clean Air Act. This proposed rule also is not
subject to Executive Order 13045 ``Protection of Children from
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,
1997), because it would approve a State rule implementing a Federal
Standard.
In reviewing SIP submissions, EPA's role is to approve State
choices, provided that they meet the criteria of the Clean Air 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 Clean Air 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 proposed rule would not impose an information collection burden
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.).
[[Page 41975]]
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 24, 2007.
Robert W. Varney,
Regional Administrator, EPA New England.
[FR Doc. E7-14887 Filed 7-31-07; 8:45 am]
BILLING CODE 6560-50-P
