Approval and Promulgation of Implementation Plans; Iowa; Clean Air Interstate Rule, 43539-43544 [E7-15121]

Download as PDF Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations cprice-sewell on PROD1PC62 with RULES because it approves 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 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 Clean Air Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by October 5, 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, Incorporation by reference, Intergovernmental relations, Particulate matter, and Reporting and recordkeeping requirements. VerDate Aug<31>2005 15:24 Aug 03, 2007 Jkt 211001 Dated: July 20, 2007. Keith Takata, Acting Regional Administrator, Region IX. Part 52, chapter I, title 40 of the Code of Federal Regulations is amended as follows: I 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 D—Arizona 2. Section 52.120 is amended by adding paragraph (c)(139) to read as follows: I § 52.120 Identification of plan. * * * * * (c) * * * (139) The following plan was submitted on July 5, 2007 by the Governor’s designee. (i) Incorporation by reference. (A) Maricopa County Air Quality Department (1) Rule 242, adopted on June 20, 2007. [FR Doc. E7–15118 Filed 8–3–07; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R07–OAR–2007–0347; FRL–8450–1] Approval and Promulgation of Implementation Plans; Iowa; Clean Air Interstate Rule Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: SUMMARY: EPA is taking final action to approve a revision to the Iowa State Implementation Plan (SIP) submitted on August 15, 2006. 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 has determined that the SIP revision fully implements the CAIR requirements for Iowa. As a result of this action, EPA will also withdraw, through a separate rulemaking, the CAIR Federal Implementation Plans (FIPs) concerning SO2, NOX annual, and NOX ozone season emissions for Iowa. The CAIR FIPs for all States in the CAIR region were promulgated on April 28, 2006, and subsequently revised on December 13, 2006. PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 43539 CAIR requires States to reduce emissions of sulfur dioxide (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 the SIP revision that EPA is approving today, Iowa has met the CAIR requirements by electing to participate in the EPA-administered cap-and-trade programs addressing SO2, NOX annual, and NOX ozone season emissions. This rule is effective on September 5, 2007. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA–R07–OAR–2007–0347. All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some information is not publicly available, i.e., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available either electronically through https://www.regulations.gov or in hard copy at the Environmental Protection Agency, Air Planning and Development Branch, 901 North 5th Street, Kansas City, Kansas 66101. The Regional Office’s official hours of business are Monday through Friday, 8 a.m. to 4:30 p.m. excluding Federal holidays. The interested persons wanting to examine these documents should make an appointment with the office at least 24 hours in advance. FOR FURTHER INFORMATION CONTACT: Michael Jay at (913) 551–7460 or by e-mail at jay.michael@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document whenever ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean EPA. DATES: 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. Analysis of Iowa’s CAIR SIP Submittal E:\FR\FM\06AUR1.SGM 06AUR1 43540 Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations A. State Budgets for Allowance Allocations B. CAIR Cap-and-Trade Programs C. NOX Allowance Allocations D. Allocation of NOX Allowances from Compliance Supplement Pool E. Individual Opt-in Units V. Final Action VI. Statutory and Executive Order Reviews cprice-sewell on PROD1PC62 with RULES I. What Action Is EPA Taking? EPA is taking final action to approve a revision to Iowa’s SIP submitted on August 15, 2006. In its SIP revision, Iowa has met the CAIR requirements by requiring certain electric generating units (EGUs) to participate in the EPAadministered State CAIR cap-and-trade programs addressing SO2, NOX annual, and NOX ozone season emissions, as finalized in the Iowa Administrative Bulletin on June 7, 2006 (567– 20.1(455B,17A), 21.1(4), and Chapter 34). Iowa’s regulations adopt by reference most of the provisions of EPA’s SO2, NOX annual, and NOX ozone season model trading rules, with certain changes discussed below. EPA has determined that the SIP as revised will meet the applicable requirements of CAIR. As a result of this action, the Administrator of EPA will also issue a final rule to withdraw the FIPs concerning SO2, NOX annual, and NOX ozone season emissions for Iowa. The Administrator’s action will delete and reserve 40 CFR 52.840 and 40 CFR 52.841, relating to the CAIR FIP obligations for Iowa. The withdrawal of the CAIR FIPs for Iowa is a conforming amendment that must be made once the SIP is approved because EPA’s authority to issue the FIPs was premised on a deficiency in the SIP for Iowa. Once a SIP is fully approved, EPA no longer has authority for the FIPs. Thus, EPA does not have the option of maintaining the FIPs following 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 FIPs. EPA proposed to approve Iowa’s request to amend the SIP on May 8, 2007 (72 FR 26040). In that proposal, EPA also stated its intent to withdraw the FIP, as described above. The comment period closed on June 7, 2007. No comments were received. EPA is finalizing the approval as proposed based on the rationale stated in the proposal and in this final action. II. What Is the Regulatory History of CAIR and the CAIR FIPs? The 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 VerDate Aug<31>2005 15:24 Aug 03, 2007 Jkt 211001 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 1 to September 30). 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. Iowa submitted its SIP in response to EPA’s section 110(a)(2)(D) finding, which EPA approved in a rule published March 8, 2007 (72 FR 10380). In that rule, EPA stated that Iowa had met its obligation with regard to interstate transport by adoption of the CAIR model rule. EPA also stated that it would review and act on Iowa’s CAIR rule in a separate rulemaking. This document takes final action on Iowa’s CAIR rule as explained below. 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 PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 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. Analysis of Iowa’s CAIR SIP Submittal A. State Budgets for Allowance Allocations In this action, EPA is taking final action to approve Iowa’s SIP revision that adopts the budgets established for the State in CAIR, i.e., 32,692 (2009– 2014) and 27,243 (2015–thereafter) tons for NOX annual emissions, 14,263 (2009–2014) and 11,886 (2015– thereafter) tons for NOX ozone season emissions, and 64,095 (2010–2014) and 44,866 (2015–thereafter) tons for SO2 emissions. Iowa’s SIP revision sets these budgets as the total amounts of allowances available for allocation for each year under the EPA-administered cap-and-trade programs. Iowa has committed to revising a definition in all three CAIR rules in order to fully ensure allowances can be traded among all sources participating in the EPA-administered cap-and-trade programs as intended. EPA discovered after review of other States’ rules, but after Iowa had adopted its CAIR rules, that there was an issue related to the definition of ‘‘permitting authority’’ when it is revised to refer to a specific State’s permitting authority. In each of Iowa’s rules for CAIR, the EPA model trading rules were revised to limit all references to ‘‘permitting authority’’ to refer to the Iowa Department of Natural Resources. This change is acceptable in most, but not all, instances under the current model rules. In certain definitions in the model rules incorporated by Iowa (i.e., ‘‘allocate’’ or E:\FR\FM\06AUR1.SGM 06AUR1 cprice-sewell on PROD1PC62 with RULES Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations ‘‘allocation,’’ ‘‘CAIR NOX allowance,’’ ‘‘CAIR SO2 allowance,’’ and ‘‘CAIR NOX Ozone Season allowance’’), it is important that the term ‘‘permitting authority’’ cover permitting authorities in all States that choose to participate in the respective EPA-administered trading programs. This is necessary to ensure that all allowances issued in each EPAadministered trading program are fungible and can be traded and used for compliance with the allowance-holding requirement in any State in the program. On February 17, 2007, EPA provided a letter to Iowa that requested and outlined necessary definition revisions. EPA received a letter from Iowa on February 28, 2007, that provided a commitment to make the EPA suggested rule revisions as soon as is practicable upon publication of the final rule concerning the proposed Clean Air Mercury Rule (CAMR) Federal plan. On April 11, 2007, EPA received an electronic correspondence from Iowa stating that Iowa will, in any event, complete these rule revisions before January 1, 2008. The State will be able to simultaneously revise the ‘‘permitting authority’’ definition in all cap-andtrade rules for both CAIR and CAMR, and properly update the State’s rule as necessary to meet the requirements of the EPA-administered cap-and-tradeprogram for mercury. The final rule concerning the CAMR Federal plan is expected to be published before the earliest, major deadline for compliance with requirements for source owners and operators under the CAIR trading programs, i.e., the January 1, 2008, deadline for emissions monitoring requirements under the CAIR Annual Trading Program. EPA expects that, by timing adoption of the EPA requested rule revisions to be soon after the publication of the final rule concerning the CAMR Federal plan, the State will ensure the revisions to the definition of ‘‘permitting authority’’ will be completed prior to any of the major compliance deadlines for source owners and operators under the CAIR trading programs. In the event the final rule concerning the CAMR Federal plan is not published in the expected timeframe, the State will need to ensure the necessary State rule revisions are completed and submitted to EPA in advance of the January 1, 2008, monitoring deadline for the CAIR NOX Annual Trading Program. To be clear, EPA notes that it is not proposing to approve the State’s rule to comply with CAMR as part of this rulemaking. EPA will propose a separate rulemaking for the Iowa rule relating to CAMR. VerDate Aug<31>2005 15:24 Aug 03, 2007 Jkt 211001 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 annual model rule (but not the NOX ozone season model rule) provides for a compliance supplement pool (CSP), which is discussed below and under which allowances may be awarded for early reductions of NOX annual emissions. As a further 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, pre2009 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. The provisions of the CAIR SO2 model rule are also similar to the provisions of the NOX annual and ozone season model rules. However, the SO2 model rule is coordinated with the ongoing Acid Rain SO2 cap-and-trade program under CAA title IV. The SO2 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 one 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 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 PO 00000 Frm 00039 Fmt 4700 Sfmt 4700 43541 SO2, NOX annual, and NOX ozone season trading programs. In the SIP revision, Iowa has chosen to implement its CAIR budgets by requiring EGUs to participate in EPAadministered cap-and-trade programs for SO2, NOX annual, and NOX ozone season emissions. Iowa has adopted a full SIP revision (with the revisions discussed above) that adopts, with certain allowed changes discussed below, the CAIR model cap-and-trade rules for SO2, NOX annual, and NOX ozone season emissions. C. NOX Allowance Allocations 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, 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 setaside 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. Iowa has chosen to adopt generally the provisions of the CAIR NOX annual and CAIR NOX ozone season model trading rules concerning the allocation of allowances with two notable exceptions. Language is provided in Iowa’s rules that states that allowances will be allocated in future years only ‘‘to meet the minimum timing requirements’’ specified in the Federal regulations. As explained in the proposed approval, EPA understands that the language is intended to mean that allocations will be determined by the dates and only for the years identified or described in 40 CFR 96.141 E:\FR\FM\06AUR1.SGM 06AUR1 43542 Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations and 40 CFR 96.341. EPA did not receive any comments on this issue, and concludes that this understanding is a correct interpretation of Iowa’s rules. Additionally, Iowa’s CAIR NOX Annual and CAIR NOX ozone season rules establish permanent allocations for specified units designated as ‘‘existing units’’ or ‘‘new units’’ and do not include provisions of the EPA’s model rules that call for adjusting the allocations for existing units to provide allocations for future, new units. EPA is taking final action to approve these variations from the model rule provisions because the changes are consistent with the flexibility that CAIR provides States with regard to allocation methodologies. cprice-sewell on PROD1PC62 with RULES D. Allocation of NOX Allowances From Compliance Supplement Pool The CAIR establishes a compliance supplement pool to provide an incentive for early reductions in NOX annual emissions. The CSP consists of 200,000 CAIR NOX annual allowances of vintage 2009 for the entire CAIR region, and a State’s share of the CSP is based upon the projected magnitude of the emission reductions required by CAIR in that State. States may distribute CSP allowances, one allowance for each ton of early reduction, to sources that make NOX reductions during 2007 or 2008 beyond what is required by any applicable State or Federal emission limitation. States also may distribute CSP allowances based upon a demonstration of need for an extension of the 2009 deadline for implementing emission controls. The CAIR annual NOX model trading rule establishes specific methodologies for allocations of CSP allowances. States may choose an allowed, alternative CSP allocation methodology to be used to allocate CSP allowances to sources in the States. Iowa has not chosen to modify the provisions from the CAIR NOX annual model trading rule concerning the allocation of allowances from the CSP. Iowa has chosen to distribute CSP allowances using the allocation methodology provided in 40 CFR 96.143 and has adopted this section by reference. 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 VerDate Aug<31>2005 15:24 Aug 03, 2007 Jkt 211001 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. Iowa has chosen to allow non-EGUs meeting certain requirements to opt into the CAIR trading programs by adopting by reference the entirety of EPA’s model rule provisions for opt-in units in the CAIR SO2, CAIR NOX annual, and CAIR NOX ozone season trading programs. V. Final Action EPA is taking final action to approve Iowa’s full CAIR SIP revision submitted on August 15, 2006. Under this SIP revision, Iowa is choosing to participate in the EPA-administered cap-and-trade programs for SO2, NOX annual, and NOX ozone season emissions. EPA has determined that the SIP revision meets the applicable requirements in 40 CFR 51.123(o) and (aa), with regard to NOX annual and NOX ozone season emissions, and 40 CFR 51.124(o), with regard to SO2 emissions. EPA has determined that the SIP as revised will meet the requirements of CAIR. 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 FIPs concerning SO2, NOX annual, and NOX ozone season emissions for Iowa. The Administrator’s action will delete and reserve 40 CFR 52.840 and 40 CFR 52.841. EPA will take final action to withdraw the CAIR FIPs for Iowa in a separate rulemaking. PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 VI. 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 approves State law as meeting Federal requirements and would impose 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 action 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 CAA. This 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 approves 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 CAA. In this context, in the absence of a prior existing requirement for the State to use voluntary consensus E:\FR\FM\06AUR1.SGM 06AUR1 43543 Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations 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 CAA. 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 October 5, 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, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Lead, Nitrogen dioxide, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds. Dated: July 26, 2007 John B. Askew, Regional Administrator, Region 7. Chapter I, Title 40 of the Code of Federal Regulations is amended as follows: I 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 Q—Iowa 2. In § 52.820(c) the table is amended by: I a. Revising the entries for 567–20.1 and 567–21.1. I b. Adding in numerical order a heading for Chapter 34 and entries for chapter 34 subsections. The revisions and additions read as follows: I § 52.820 * Identification of plan. * * (c) * * * * * EPA-APPROVED IOWA REGULATIONS Iowa citation State effective date Title EPA approval date Explanation Iowa Department of Natural Resources Environmental Protection Commission [567] Chapter 20—Scope of Title—Definitions—Forms—Rule of Practice 567–20.1 ........ * Scope of Title .................................. * N/A * 8/6/07 [insert FR page number where the document begins]. * This rule is a non-substantive description of the Chapters contained in the Iowa rules. EPA has not approved all of the Chapters to which this rule refers. * * * * * Chapter 21—Compliance 567–21.1 ........ * Compliance Schedule ..................... * 7/12/2006 * 8/6/07 [insert FR page number where the document begins]. * * Chapter 34—Provisions for Air Quality Emissions Trading Programs 567–34.1 ........ Purpose ........................................... 7/12/2006 567–34.2 to 567–34.199. 567–34.201 .... Reserved ......................................... 7/12/2006 7/12/2006 567–34.203 .... CAIR NOX annual trading program provisions. CAIR designated representative for CAIR NOX sources. Permits ............................................ 567–34.204 .... Reserved ......................................... 7/12/2006 567–34.205 .... CAIR NOX allowance allocations ... 7/12/2006 cprice-sewell on PROD1PC62 with RULES 567–34.202 .... VerDate Aug<31>2005 15:24 Aug 03, 2007 Jkt 211001 PO 00000 7/12/2006 7/12/2006 Frm 00041 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. Fmt 4700 Sfmt 4700 E:\FR\FM\06AUR1.SGM 06AUR1 43544 Federal Register / Vol. 72, No. 150 / Monday, August 6, 2007 / Rules and Regulations EPA-APPROVED IOWA REGULATIONS—Continued State effective date Iowa citation Title 567–34.206 .... 7/12/2006 567–34.207 .... CAIR NOX allowance tracking system. CAIR NOX allowance transfers ...... 567–34.208 .... Monitoring and reporting ................. 7/12/2006 567–34.209 .... CAIR NOX opt-in units .................... 7/12/2006 567–34.210 .... CAIR SO2 trading program ............. 7/12/2006 567–34.211 to 567–34.219. 567–34.220 .... Reserved ......................................... 7/12/2006 7/12/2006 567–34.223 .... CAIR NOX ozone season trading program. CAIR NOX ozone season trading program general provisions. CAIR designated representative for CAIR NOX ozone season sources. CAIR NOX ozone season permits .. 567–34.224 .... Reserved ......................................... 7/12/2006 567–34.225 .... CAIR NOX ozone season ance allocations. CAIR NOX ozone season ance tracking system. CAIR NOX ozone season ance transfers. CAIR NOX ozone season toring and reporting. CAIR NOX ozone season units. allow- 7/12/2006 allow- 7/12/2006 allow- 7/12/2006 moni- 7/12/2006 opt-in 7/12/2006 567–34.221 .... 567–34.222 .... 567–34.226 .... 567–34.227 .... 567–34.228 .... 567–34.229 .... * * * * * * * BILLING CODE 6560–50–P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency 44 CFR Part 5 [Docket ID FEMA–2007–0006] RIN 1660–AA54 Federal Emergency Management Agency (FEMA) Touhy Regulations Federal Emergency Management Agency, DHS. ACTION: Final rule. cprice-sewell on PROD1PC62 with RULES AGENCY: SUMMARY: This final rule makes a clarifying amendment to the Federal Emergency Management Agency’s (FEMA) Touhy regulations. As already provided in the Touhy regulations of the Department of Homeland Security (DHS), of which FEMA is a component, 15:24 Aug 03, 2007 7/12/2006 7/12/2006 7/12/2006 * [FR Doc. E7–15121 Filed 8–3–07; 8:45 am] VerDate Aug<31>2005 7/12/2006 Jkt 211001 EPA approval date 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/07 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. 8/6/2007 [insert FR page number where the document begins]. * * FEMA is adding language to its regulations clarifying that DHS Touhy regulations are applicable to any subject matter not already covered by FEMA’s regulations, including but not limited to demands or requests directed to current or former FEMA contractors. This action ensures consistency within DHS with a uniform approach and administration of Touhy regulations, and provides additional clarification with respect to agency organization and practice. This regulation will have no substantive effect on the regulated public. DATES: This final rule is effective August 6, 2007. ADDRESSES: Documents as indicated in this preamble are available for inspection and copying under Docket ID FEMA–2007–0006, at the Office of Chief Counsel, Federal Emergency Management Agency, Room 835, 500 C Street, SW., Washington, DC, or online at the Federal eRulemaking Portal: https://www.regulations.gov. FOR FURTHER INFORMATION CONTACT: Jordan S. Fried, Associate Chief Counsel for Litigation, Office of Chief Counsel, Federal Emergency Management PO 00000 Frm 00042 Explanation Fmt 4700 Sfmt 4700 * * Agency, Department of Homeland Security, 500 C Street, SW., Washington, DC 20472, (phone) 202– 646–4112, (facsimile) 202–646–4536, or (e-mail) Jordan.fried@dhs.gov. SUPPLEMENTARY INFORMATION: Regulatory Information FEMA did not publish a notice of proposed rulemaking for this regulation. Under both 5 U.S.C. 553(b)(A) and (b)(B), FEMA finds that this rule is exempt from notice and comment rulemaking requirements because this is a procedural rule involving agency organization and practice, and has no substantive effect on the public. This rule consists only of a technical clarifying amendment. Because this is a procedural rule, rather than substantive, this rule will become effective immediately upon publication as authorized under 5 U.S.C. 553(d). Background The Federal Emergency Management Agency (FEMA), a component of the Department of Homeland Security (DHS), issues this rule to eliminate public confusion with respect to how E:\FR\FM\06AUR1.SGM 06AUR1

Agencies

ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 72, Number 150 (Monday, August 6, 2007)]
[Rules and Regulations]
[Pages 43539-43544]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-15121]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2007-0347; FRL-8450-1]

Approval and Promulgation of Implementation Plans; Iowa; Clean
Air Interstate Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: EPA is taking final action to approve a revision to the Iowa
State Implementation Plan (SIP) submitted on August 15, 2006. 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 has determined that the SIP
revision fully implements the CAIR requirements for Iowa. As a result
of this action, EPA will also withdraw, through a separate rulemaking,
the CAIR Federal Implementation Plans (FIPs) concerning SO2,
NOX annual, and NOX ozone season emissions for
Iowa. 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 sulfur dioxide
(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 the SIP revision that EPA is approving today, Iowa has met
the CAIR requirements by electing to participate in the EPA-
administered cap-and-trade programs addressing SO2,
NOX annual, and NOX ozone season emissions.

DATES: This rule is effective on September 5, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID
No. EPA-R07-OAR-2007-0347. All documents in the docket are listed on
the https://www.regulations.gov Web site. Although listed in the index,
some information is not publicly available, i.e., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either electronically through
https://www.regulations.gov or in hard copy at the Environmental
Protection Agency, Air Planning and Development Branch, 901 North 5th
Street, Kansas City, Kansas 66101. The Regional Office's official hours
of business are Monday through Friday, 8 a.m. to 4:30 p.m. excluding
Federal holidays. The interested persons wanting to examine these
documents should make an appointment with the office at least 24 hours
in advance.

FOR FURTHER INFORMATION CONTACT: Michael Jay at (913) 551-7460 or by e-
mail at jay.michael@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``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. Analysis of Iowa's CAIR SIP Submittal

[[Page 43540]]

A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. NOX Allowance Allocations
D. Allocation of NOX Allowances from Compliance
Supplement Pool
E. Individual Opt-in Units
V. Final Action
VI. Statutory and Executive Order Reviews

I. What Action Is EPA Taking?

EPA is taking final action to approve a revision to Iowa's SIP
submitted on August 15, 2006. In its SIP revision, Iowa has met the
CAIR requirements by requiring certain electric generating units (EGUs)
to participate in the EPA-administered State CAIR cap-and-trade
programs addressing SO2, NOX annual, and
NOX ozone season emissions, as finalized in the Iowa
Administrative Bulletin on June 7, 2006 (567-20.1(455B,17A), 21.1(4),
and Chapter 34). Iowa's regulations adopt by reference most of the
provisions of EPA's SO2, NOX annual, and
NOX ozone season model trading rules, with certain changes
discussed below. EPA has determined that the SIP as revised will meet
the applicable requirements of CAIR. As a result of this action, the
Administrator of EPA will also issue a final rule to withdraw the FIPs
concerning SO2, NOX annual, and NOX
ozone season emissions for Iowa. The Administrator's action will delete
and reserve 40 CFR 52.840 and 40 CFR 52.841, relating to the CAIR FIP
obligations for Iowa. The withdrawal of the CAIR FIPs for Iowa is a
conforming amendment that must be made once the SIP is approved because
EPA's authority to issue the FIPs was premised on a deficiency in the
SIP for Iowa. Once a SIP is fully approved, EPA no longer has authority
for the FIPs. Thus, EPA does not have the option of maintaining the
FIPs following 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 FIPs.
EPA proposed to approve Iowa's request to amend the SIP on May 8,
2007 (72 FR 26040). In that proposal, EPA also stated its intent to
withdraw the FIP, as described above. The comment period closed on June
7, 2007. No comments were received. EPA is finalizing the approval as
proposed based on the rationale stated in the proposal and in this
final action.

II. What Is the Regulatory History of CAIR and the CAIR FIPs?

The 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 1 to September 30). 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.
Iowa submitted its SIP in response to EPA's section 110(a)(2)(D)
finding, which EPA approved in a rule published March 8, 2007 (72 FR
10380). In that rule, EPA stated that Iowa had met its obligation with
regard to interstate transport by adoption of the CAIR model rule. EPA
also stated that it would review and act on Iowa's CAIR rule in a
separate rulemaking. This document takes final action on Iowa's CAIR
rule as explained below.

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. Analysis of Iowa's CAIR SIP Submittal

A. State Budgets for Allowance Allocations

In this action, EPA is taking final action to approve Iowa's SIP
revision that adopts the budgets established for the State in CAIR,
i.e., 32,692 (2009-2014) and 27,243 (2015-thereafter) tons for
NOX annual emissions, 14,263 (2009-2014) and 11,886 (2015-
thereafter) tons for NOX ozone season emissions, and 64,095
(2010-2014) and 44,866 (2015-thereafter) tons for SO2
emissions. Iowa's SIP revision sets these budgets as the total amounts
of allowances available for allocation for each year under the EPA-
administered cap-and-trade programs.
Iowa has committed to revising a definition in all three CAIR rules
in order to fully ensure allowances can be traded among all sources
participating in the EPA-administered cap-and-trade programs as
intended. EPA discovered after review of other States' rules, but after
Iowa had adopted its CAIR rules, that there was an issue related to the
definition of ``permitting authority'' when it is revised to refer to a
specific State's permitting authority.
In each of Iowa's rules for CAIR, the EPA model trading rules were
revised to limit all references to ``permitting authority'' to refer to
the Iowa Department of Natural Resources. This change is acceptable in
most, but not all, instances under the current model rules. In certain
definitions in the model rules incorporated by Iowa (i.e., ``allocate''
or

[[Page 43541]]

``allocation,'' ``CAIR NOX allowance,'' ``CAIR
SO2 allowance,'' and ``CAIR NOX Ozone Season
allowance''), it is important that the term ``permitting authority''
cover permitting authorities in all States that choose to participate
in the respective EPA-administered trading programs. This is necessary
to ensure that all allowances issued in each EPA-administered trading
program are fungible and can be traded and used for compliance with the
allowance-holding requirement in any State in the program.
On February 17, 2007, EPA provided a letter to Iowa that requested
and outlined necessary definition revisions. EPA received a letter from
Iowa on February 28, 2007, that provided a commitment to make the EPA
suggested rule revisions as soon as is practicable upon publication of
the final rule concerning the proposed Clean Air Mercury Rule (CAMR)
Federal plan. On April 11, 2007, EPA received an electronic
correspondence from Iowa stating that Iowa will, in any event, complete
these rule revisions before January 1, 2008. The State will be able to
simultaneously revise the ``permitting authority'' definition in all
cap-and-trade rules for both CAIR and CAMR, and properly update the
State's rule as necessary to meet the requirements of the EPA-
administered cap-and-trade-program for mercury.
The final rule concerning the CAMR Federal plan is expected to be
published before the earliest, major deadline for compliance with
requirements for source owners and operators under the CAIR trading
programs, i.e., the January 1, 2008, deadline for emissions monitoring
requirements under the CAIR Annual Trading Program. EPA expects that,
by timing adoption of the EPA requested rule revisions to be soon after
the publication of the final rule concerning the CAMR Federal plan, the
State will ensure the revisions to the definition of ``permitting
authority'' will be completed prior to any of the major compliance
deadlines for source owners and operators under the CAIR trading
programs. In the event the final rule concerning the CAMR Federal plan
is not published in the expected timeframe, the State will need to
ensure the necessary State rule revisions are completed and submitted
to EPA in advance of the January 1, 2008, monitoring deadline for the
CAIR NOX Annual Trading Program.
To be clear, EPA notes that it is not proposing to approve the
State's rule to comply with CAMR as part of this rulemaking. EPA will
propose a separate rulemaking for the Iowa rule relating to CAMR.

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 annual model rule (but not the NOX ozone
season model rule) provides for a compliance supplement pool (CSP),
which is discussed below and under which allowances may be awarded for
early reductions of NOX annual emissions. As a further
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.
The provisions of the CAIR SO2 model rule are also
similar to the provisions of the NOX annual and ozone season
model rules. However, the SO2 model rule is coordinated with
the ongoing Acid Rain SO2 cap-and-trade program under CAA
title IV. The SO2 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 one 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 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, Iowa has chosen to implement its CAIR budgets
by requiring EGUs to participate in EPA-administered cap-and-trade
programs for SO2, NOX annual, and NOX
ozone season emissions. Iowa has adopted a full SIP revision (with the
revisions discussed above) that adopts, with certain allowed changes
discussed below, the CAIR model cap-and-trade rules for SO2,
NOX annual, and NOX ozone season emissions.

C. NOX Allowance Allocations

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, 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.
Iowa has chosen to adopt generally the provisions of the CAIR
NOX annual and CAIR NOX ozone season model
trading rules concerning the allocation of allowances with two notable
exceptions. Language is provided in Iowa's rules that states that
allowances will be allocated in future years only ``to meet the minimum
timing requirements'' specified in the Federal regulations. As
explained in the proposed approval, EPA understands that the language
is intended to mean that allocations will be determined by the dates
and only for the years identified or described in 40 CFR 96.141

[[Page 43542]]

and 40 CFR 96.341. EPA did not receive any comments on this issue, and
concludes that this understanding is a correct interpretation of Iowa's
rules. Additionally, Iowa's CAIR NOX Annual and CAIR
NOX ozone season rules establish permanent allocations for
specified units designated as ``existing units'' or ``new units'' and
do not include provisions of the EPA's model rules that call for
adjusting the allocations for existing units to provide allocations for
future, new units. EPA is taking final action to approve these
variations from the model rule provisions because the changes are
consistent with the flexibility that CAIR provides States with regard
to allocation methodologies.

D. Allocation of NOX Allowances From Compliance Supplement
Pool

The CAIR establishes a compliance supplement pool to provide an
incentive for early reductions in NOX annual emissions. The
CSP consists of 200,000 CAIR NOX annual allowances of
vintage 2009 for the entire CAIR region, and a State's share of the CSP
is based upon the projected magnitude of the emission reductions
required by CAIR in that State. States may distribute CSP allowances,
one allowance for each ton of early reduction, to sources that make
NOX reductions during 2007 or 2008 beyond what is required
by any applicable State or Federal emission limitation. States also may
distribute CSP allowances based upon a demonstration of need for an
extension of the 2009 deadline for implementing emission controls.
The CAIR annual NOX model trading rule establishes
specific methodologies for allocations of CSP allowances. States may
choose an allowed, alternative CSP allocation methodology to be used to
allocate CSP allowances to sources in the States.
Iowa has not chosen to modify the provisions from the CAIR
NOX annual model trading rule concerning the allocation of
allowances from the CSP. Iowa has chosen to distribute CSP allowances
using the allocation methodology provided in 40 CFR 96.143 and has
adopted this section by reference.

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.
Iowa has chosen to allow non-EGUs meeting certain requirements to
opt into the CAIR trading programs by adopting by reference the
entirety of EPA's model rule provisions for opt-in units in the CAIR
SO2, CAIR NOX annual, and CAIR NOX
ozone season trading programs.

V. Final Action

EPA is taking final action to approve Iowa's full CAIR SIP revision
submitted on August 15, 2006. Under this SIP revision, Iowa is choosing
to participate in the EPA-administered cap-and-trade programs for
SO2, NOX annual, and NOX ozone season
emissions. EPA has determined that the SIP revision meets the
applicable requirements in 40 CFR 51.123(o) and (aa), with regard to
NOX annual and NOX ozone season emissions, and 40
CFR 51.124(o), with regard to SO2 emissions. EPA has
determined that the SIP as revised will meet the requirements of CAIR.
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 FIPs
concerning SO2, NOX annual, and NOX
ozone season emissions for Iowa. The Administrator's action will delete
and reserve 40 CFR 52.840 and 40 CFR 52.841. EPA will take final action
to withdraw the CAIR FIPs for Iowa in a separate rulemaking.

VI. 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 approves State law as meeting Federal requirements and would
impose 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 action 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 CAA.
This 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 approves 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 CAA. In this
context, in the absence of a prior existing requirement for the State
to use voluntary consensus

[[Page 43543]]

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 CAA.
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 October 5, 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, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen
dioxide, Ozone, Particulate matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile organic compounds.

Dated: July 26, 2007
John B. Askew,
Regional Administrator, Region 7.

0
Chapter I, Title 40 of the Code of Federal Regulations 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 Q--Iowa

0
2. In Sec. 52.820(c) the table is amended by:
0
a. Revising the entries for 567-20.1 and 567-21.1.
0
b. Adding in numerical order a heading for Chapter 34 and entries for
chapter 34 subsections.
The revisions and additions read as follows:

Sec. 52.820 Identification of plan.

* * * * *
(c) * * *

EPA-Approved Iowa Regulations
----------------------------------------------------------------------------------------------------------------
State
Iowa citation Title effective EPA approval date Explanation
date
----------------------------------------------------------------------------------------------------------------
Iowa Department of Natural Resources Environmental Protection Commission [567]
----------------------------------------------------------------------------------------------------------------
Chapter 20--Scope of Title--Definitions--Forms--Rule of Practice
----------------------------------------------------------------------------------------------------------------
567-20.1................. Scope of Title......... N/A 8/6/07 [insert FR page This rule is a non-
number where the substantive
document begins]. description of the
Chapters contained in
the Iowa rules. EPA
has not approved all
of the Chapters to
which this rule
refers.

* * * * * * *
----------------------------------------------------------------------------------------------------------------
Chapter 21--Compliance
----------------------------------------------------------------------------------------------------------------
567-21.1................. Compliance Schedule.... 7/12/2006 8/6/07 [insert FR page
number where the
document begins].

* * * * * * *
----------------------------------------------------------------------------------------------------------------
Chapter 34--Provisions for Air Quality Emissions Trading Programs
----------------------------------------------------------------------------------------------------------------
567-34.1................. Purpose................ 7/12/2006 8/6/07 [insert FR page
number where the
document begins].
567-34.2 to 567-34.199... Reserved............... 7/12/2006 8/6/07 [insert FR page
number where the
document begins].
567-34.201............... CAIR NOX annual trading 7/12/2006 8/6/07 [insert FR page
program provisions. number where the
document begins].
567-34.202............... CAIR designated 7/12/2006 8/6/07 [insert FR page
representative for number where the
CAIR NOX sources. document begins].
567-34.203............... Permits................ 7/12/2006 8/6/07 [insert FR page
number where the
document begins].
567-34.204............... Reserved............... 7/12/2006 8/6/07 [insert FR page
number where the
document begins].
567-34.205............... CAIR NOX allowance 7/12/2006 8/6/07 [insert FR page
allocations. number where the
document begins].

[[Page 43544]]

567-34.206............... CAIR NOX allowance 7/12/2006 8/6/07 [insert FR page
tracking system. number where the
document begins].
567-34.207............... CAIR NOX allowance 7/12/2006 8/6/07 [insert FR page
transfers. number where the
document begins].
567-34.208............... Monitoring and 7/12/2006 8/6/07 [insert FR page
reporting. number where the
document begins].
567-34.209............... CAIR NOX opt-in units.. 7/12/2006 8/6/07 [insert FR page
number where the
document begins].
567-34.210............... CAIR SO2 trading 7/12/2006 8/6/2007 [insert FR
program. page number where the
document begins].
567-34.211 to 567-34.219. Reserved............... 7/12/2006 8/6/2007 [insert FR
page number where the
document begins].
567-34.220............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
trading program. page number where the
document begins].
567-34.221............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
trading program page number where the
general provisions. document begins].
567-34.222............... CAIR designated 7/12/2006 8/6/2007 [insert FR
representative for page number where the
CAIR NOX ozone season document begins].
sources.
567-34.223............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
permits. page number where the
document begins].
567-34.224............... Reserved............... 7/12/2006 8/6/2007 [insert FR
page number where the
document begins].
567-34.225............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
allowance allocations. page number where the
document begins].
567-34.226............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
allowance tracking page number where the
system. document begins].
567-34.227............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
allowance transfers. page number where the
document begins].
567-34.228............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
monitoring and page number where the
reporting. document begins].
567-34.229............... CAIR NOX ozone season 7/12/2006 8/6/2007 [insert FR
opt-in units. page number where the
document begins].

* * * * * * *
----------------------------------------------------------------------------------------------------------------

* * * * *
[FR Doc. E7-15121 Filed 8-3-07; 8:45 am]
BILLING CODE 6560-50-P

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