Approval and Promulgation of Air Quality Implementation Plans; Ohio; Oxides of Nitrogen Budget Trading Program, 52320-52324 [E7-18061]
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1. www.regulations.gov: Follow the
on-line instructions for submitting
comments.
2. E-mail: lesane.heidi@epa.gov.
3. Fax: 404–562–9019.
4. Mail: ‘‘EPA–R04–OAR–2006–
0650,’’ Regulatory Development Section,
Air Planning Branch, Air, Pesticides and
Toxics Management Division, U.S.
Environmental Protection Agency,
Region 4, 61 Forsyth Street, SW.,
Atlanta, Georgia 30303–8960.
5. Hand Delivery or Courier: Heidi
LeSane, Regulatory Development
Section, Air Planning Branch, Air,
Pesticides and Toxics Management
Division, U.S. Environmental Protection
Agency, Region 4, 61 Forsyth Street,
SW., Atlanta, Georgia 30303–8960. 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.
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:
Heidi LeSane, Regulatory Development
Section, Air Planning Branch, Air,
Pesticides and Toxics Management
Division, U.S. Environmental Protection
Agency, Region 4, 61 Forsyth Street,
SW., Atlanta, Georgia 30303–8960. The
telephone number is (404) 562–9074.
Ms. LeSane can also be reached via
electronic mail at lesane.heidi@epa.gov.
SUPPLEMENTARY INFORMATION: For
additional information see the direct
final rule which is published in the
Rules Section of this Federal Register.
Dated: August 27, 2007.
Russell L. Wright, Jr.,
Acting Regional Administrator, Region 4.
[FR Doc. E7–17630 Filed 9–12–07; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
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[EPA–R05–OAR–2007–0293; FRL–8464–5]
Approval and Promulgation of Air
Quality Implementation Plans; Indiana;
VOC Emissions From Fuel Grade
Ethanol Production Operations
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing to approve
a March 30, 2007, request from the
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Indiana Department of Environmental
Management (IDEM) to revise the
Indiana State Implementation Plan (SIP)
by adding a volatile organic compound
(VOC) rule for fuel grade ethanol
production at dry mills. This rule
revision creates an industry-specific
Best Available Control Technology
(BACT) standard for new fuel grade
ethanol production dry mills that
replaces the otherwise required case-bycase BACT determination for new
facilities with the potential to emit 25
tons or more of VOC per year. The
benefit of this rule is that establishing
specific standards in place of a case-bycase analysis improves the clarity,
predictability, and timeliness of permit
decisions.
DATES: Comments must be received on
or before October 15, 2007.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R05–
OAR–2007–0293, by one of the
following methods:
1. https://www.regulations.gov: Follow
the on-line instructions for submitting
comments.
2. E-mail: mooney.john@epa.gov.
3. Fax: (312)886–5824.
4. Mail: John M. Mooney, Chief,
Criteria Pollutant Section, Air Programs
Branch (AR–18J), U.S. Environmental
Protection Agency, 77 West Jackson
Boulevard, Chicago, Illinois 60604.
5. Hand Delivery: John M. Mooney,
Chief, Criteria Pollutant Section, Air
Programs Branch (AR–18J), U.S.
Environmental Protection Agency, 77
West Jackson Boulevard, Chicago,
Illinois 60604. Such deliveries are only
accepted during the Regional Office
normal hours of operation, and special
arrangements should be made for
deliveries of boxed information. The
Regional Office official hours of
business are Monday through Friday,
8:30 a.m. to 4:30 p.m. excluding Federal
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:
Steven Rosenthal, Environmental
Engineer, Criteria Pollutant Section, Air
Programs Branch (AR–18J),
Environmental Protection Agency,
Region 5, 77 West Jackson Boulevard,
Chicago, Illinois 60604, (312) 886–6052,
rosenthal.steven@epa.gov.
SUPPLEMENTARY INFORMATION: In the
Final Rules section of this Federal
Register, EPA is approving the State’s
SIP submittal as a direct final rule
without prior proposal because the
Agency views this as a noncontroversial
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submittal and anticipates no adverse
comments. A detailed rationale for the
approval is set forth in the direct final
rule. If no adverse comments are
received in response to this rule, no
further activity is contemplated. If EPA
receives adverse comments, the direct
final rule will be withdrawn and all
public comments received will be
addressed in a subsequent final rule
based on this proposed rule. EPA will
not institute a second comment period.
Any parties interested in commenting
on this action should do so at this time.
Please note that if EPA receives adverse
comment on an amendment, paragraph,
or section of this rule and if that
provision may be severed from the
remainder of the rule, EPA may adopt
as final those provisions of the rule that
are not the subject of an adverse
comment. For additional information,
see the direct final rule which is located
in the Rules section of this Federal
Register.
Dated: August 24, 2007.
Richard C. Karl,
Acting Regional Administrator, Region 5.
[FR Doc. E7–17880 Filed 9–12–07; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R05–OAR–2006–0976; FRL–8467–4]
Approval and Promulgation of Air
Quality Implementation Plans; Ohio;
Oxides of Nitrogen Budget Trading
Program
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
SUMMARY: EPA is proposing to approve
Ohio’s request to permanently retire 240
oxides of nitrogen (NOX) allowances
from the State’s 2005 new source set
aside, which would otherwise have
been distributed to existing sources that
are required participants in the State of
Ohio’s NOX budget. Under the Federal
NOX Budget Trading Program, each
participating state receives a main pool
of ‘allowances’, which are credits that
permit a source to emit one ton of NOX
per allowance. Allowances are
apportioned state-wide to electricity
generating units and other large NOX
sources which are subject to the budget
trading program. Each year, a certain
number of allowances are set aside from
the main pool by the State, specifically
for use by any new sources subject to
the trading program which may come
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on-line during that year. If no new
sources are created, and no new source
set aside allowances are used, the new
source set aside allowances are returned
to the main pool of allowances for use
the following year.
Retiring 240 new source set aside
allowances will provide surplus
emission reductions to help compensate
for the discontinuation of Ohio’s ‘ECheck’ motor vehicle inspection and
maintenance (I/M) program in the
Cincinnati and Dayton areas for the year
2006 (Ohio is in the process of seeking
approval of the removal of E-Check from
the State Implementation Plan (SIP),
which will be addressed in a separate
action). Withholding and permanently
retiring 240 new source set aside
allowances from the year 2006 control
period will provide 240 tons of surplus
NOX emission reductions that are
creditable for replacing reductions that
otherwise would have occurred from the
E-Check program during the 2006 ozone
season.
DATES: Comments must be received on
or before October 15, 2007.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R05–
OAR–2006–0976, by one of the
following methods:
1. https://www.regulations.gov: Follow
the on-line instructions for submitting
comments.
2. E-mail: mooney.john@epa.gov.
3. Fax: (312) 886–5824.
4. Mail: John M. Mooney, Chief,
Criteria Pollutant Section, Air Programs
Branch (AR–18J), U.S. Environmental
Protection Agency, 77 West Jackson
Boulevard, Chicago, Illinois 60604.
5. Hand Delivery: John M. Mooney,
Chief, Criteria Pollutant Section, Air
Programs Branch (AR–18J), U.S.
Environmental Protection Agency, 77
West Jackson Boulevard, Chicago,
Illinois 60604. Such deliveries are only
accepted during the Regional Office
normal hours of operation, and special
arrangements should be made for
deliveries of boxed information. The
Regional Office official hours of
business are Monday through Friday,
8:30 a.m. to 4:30 p.m. excluding Federal
holidays.
Instructions: Direct your comments to
Docket ID No. EPA–R05–OAR–2006–
0976. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
made available online at
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.
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Do not submit information that you
consider to be CBI or otherwise
protected through www.regulations.gov
or e-mail. The www.regulations.gov Web
site is an ‘‘anonymous access’’ system,
which means EPA will not know your
identity or contact information unless
you provide it in the body of your
comment. If you send an e-mail
comment directly to EPA without going
through www.regulations.gov your email address will be automatically
captured and included as part of the
comment that is placed in the public
docket and made available on the
Internet. If you submit an electronic
comment, EPA recommends that you
include your name and other contact
information in the body of your
comment and with any disk or CD–ROM
you submit. If EPA cannot read your
comment due to technical difficulties
and cannot contact you for clarification,
EPA may not be able to consider your
comment. Electronic files should avoid
the use of special characters, any form
of encryption, and be free of any defects
or viruses. For additional instructions
on submitting comments, go to Section
I of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: All documents in the docket
are listed in the www.regulations.gov
index. Although listed in the index,
some information is not publicly
available, e.g., CBI or other information
whose disclosure is restricted by statute.
Certain other material, such as
copyrighted material, will be publicly
available only in hard copy. Publicly
available docket materials are available
either electronically in
www.regulations.gov or in hard copy at
the Environmental Protection Agency,
Region 5, Air and Radiation Division, 77
West Jackson Boulevard, Chicago,
Illinois 60604. This Facility is open
from 8:30 a.m. to 4:30 p.m., Monday
through Friday, excluding legal
holidays. We recommend that you
telephone Anthony Maietta, Life
Scientist, at (312) 353–8777 before
visiting the Region 5 office.
FOR FURTHER INFORMATION CONTACT:
Anthony Maietta, Life Scientist, Criteria
Pollutant Section, Air Programs Branch
(AR–18J), Environmental Protection
Agency, Region 5, 77 West Jackson
Boulevard, Chicago, Illinois 60604,
(312) 353–8777,
maietta.anthony@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
EPA. This supplementary information
section is arranged as follows:
I. What should I consider as I prepare my
comments for EPA?
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II. Does this proposed rule apply to me?
III. Background
A. Why has the State requested revisions
to this rule?
B. When did the State submit the requested
rule revisions to EPA?
C. When did the State adopt these rule
revisions, and have they become
effective?
D. When were public hearings held?
E. What comments did the State receive,
and how did the State respond?
IV. Review of the State’s Submittal
V. What action is EPA taking?
VI. Statutory and Executive Order Reviews
I. What should I consider as I prepare
my comments for EPA?
When submitting comments,
remember to:
1. Identify the rulemaking by docket
number and other identifying
information (subject heading, Federal
Register date and page number).
2. Follow directions—The EPA may
ask you to respond to specific questions
or organize comments by referencing a
Code of Federal Regulations (CFR) part
or section number.
3. Explain why you agree or disagree;
suggest alternatives and substitute
language for your requested changes.
4. Describe any assumptions and
provide any technical information and/
or data that you used.
5. If you estimate potential costs or
burdens, explain how you arrived at
your estimate in sufficient detail to
allow for it to be reproduced.
6. Provide specific examples to
illustrate your concerns, and suggest
alternatives.
7. Explain your views as clearly as
possible, avoiding the use of profanity
or personal threats.
8. Make sure to submit your
comments by the comment period
deadline identified.
II. Does this proposed rule apply to me?
This proposed rule affects electrical
generation units (EGUs) as well as large
boilers which are subject to Ohio’s NOX
budget trading program and are not
considered to be ‘‘new’’ units under the
guidelines of the trading program.
Affected units will not receive certain
excess new unit set aside allowances for
the year 2006.
III. Background
A. Why has the State requested revisions
to this rule?
On December 31, 2005, Ohio
discontinued the motor vehicle
inspection and maintenance (I/M)
programs, otherwise known as E-Check,
in the Cincinnati and Dayton areas.
According to section 110(l) of the Clean
Air Act, EPA may not approve the
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discontinuation of this program unless
the State can demonstrate that the
revision will not interfere with
attainment of the health-based National
Ambient Air Quality Standards. For this
purpose, Ohio is providing emission
reductions that compensate for the
emission increase expected to result
from discontinuation of E-Check. It
should be noted that Ohio is currently
seeking approval of the removal of ECheck from the SIP, which will be
addressed in a separate rulemaking.
As compensation for the emissions
reductions lost through the
discontinuation of E-Check, Ohio
adopted requirements for low-volatility
gasoline and requirements for lower
emissions from gas cans, solvent
degreasing, and automobile refinishing.
EPA approved the gas can, solvent
degreasing, and automobile refinishing
measures in a rulemaking action
published on March 30, 2007, (72 FR
15045). The lower-volatility gasoline
requirement was originally intended to
be implemented in 2006, but was
delayed until June 2008. (For more
information see rulemaking published
on May 25, 2007, at 72 FR 29269).
Without the low-volatility gasoline
program to compensate for emissions in
2006 resulting from discontinuation of
E-Check, Ohio asked EPA, in a May 6,
2005, letter, if emission control devices
that were installed on various power
plants around the Cincinnati-Dayton
area could provide the compensatory
NOX emissions reduction. In our
response, dated September 20, 2005,
EPA noted that, while the reductions
clearly occurred and clearly provide
both local and regional air quality
benefits, these actions would not be
considered surplus emission reductions
because these reductions would have
occurred anyway through regular
implementation of the Regional NOX
Budget Trading Program, otherwise
known as the NOX SIP Call.
The NOX SIP Call created a marketbased cap and trade program to reduce
NOX emissions from power plants and
other large sources across the Eastern
half of the United States. The program
is designed to allow states to have
greater flexibility to achieve state-wide
emission reductions with local as well
as regional benefits. Because the NOX
SIP Call garners reductions which are
not source-specific, Ohio does not have
the ability to decide exactly where
reductions will take place.
However, we noted that if Ohio were
to withdraw and retire new source set
aside allowances, this action would
yield surplus reductions. By retiring
new source set aside allowances that
would otherwise have been
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redistributed the following year for use
by existing sources subject to the trading
program, Ohio has mandated a
reduction in emissions that EPA
considers surplus reductions beyond the
reductions of the existing NOX SIP Call.
Ohio adopted changes to Ohio
Administrative Code (OAC) Chapters
3745–72–01 and 3745–14–05, and
submitted them for approval on October
11, 2006. These rules provide a revised
start date for the use of low-volatility
gasoline and provide the necessary
quantity of interim, surplus NOX
emission reductions through the
permanent retirement of new source set
aside allowances from the State’s NOX
budget trading program.
Withholding and retiring new source
set aside allowances from the year 2005
ensured that these allowances would
not return to existing NOX budget
trading program sources in 2006,
therefore providing surplus emission
reductions for 2006. As indicated above,
the portion of the submittal concerning
low-volatility gasoline has been
addressed by EPA in a separate
rulemaking action.
B. When did the State submit the
requested rule revisions to EPA?
The Director of the Ohio
Environmental Protection Agency (Ohio
EPA) submitted a request for EPA to
approve revisions to OAC 3745–14–05
(NOX allowance allocations) in a letter
dated October 11, 2006.
C. When did the State adopt these rule
revisions, and have they become
effective?
The proposed rule language was filed
as an emergency rule on April 24, 2006.
A proposed permanent adoption
package for this rule was filed the same
day. The Director of the Ohio
Environmental Protection Agency
issued an order of adoption for
permanent revisions to OAC 3745–14–
05 on July 10, 2006. The effective date
of this order was July 17, 2006. EPA is
rulemaking on the permanent rule
revisions and is not acting on the
emergency rules.
D. When were public hearings held?
A public hearing on revisions to OAC
3745–14–05 was held on June 2, 2006,
in Columbus, Ohio.
E. What comments did the State receive,
and how did the State respond?
A commenter questioned the
necessity of amending OAC rule 3745–
14–05; the commenter stated that the
Cincinnati/Dayton area had already
monitored attainment, so meeting antibacksliding regulations is not necessary.
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Ohio EPA disagreed with the
commenter, noting that the Cincinnati
area may still be monitoring
nonattainment air quality at four sites.
Also, OEPA noted that the antibacksliding elements of the areas’ 1hour ozone nonattainment requirements
cannot be removed; therefore the State’s
proposed rule revisions are, in fact,
necessary.
A commenter representing Buckeye
Power, Inc., Columbus Southern Power
Company, Dayton Power & Light
Company, Duke Energy, Ohio Power
Company, and Ohio Valley Electric
Corporation (hereafter described as the
‘Utilities’) objected to the proposed rule
revisions because local reductions were
being realized by applying regional
reductions to NOX budgets, which
wouldn’t necessarily have local benefit
to the Cincinnati/Dayton areas. Ohio
EPA responded by noting that air
quality modeling indicates that the
optimum scenario for reducing ozone in
the Cincinnati/Dayton areas is a
combination of regional NOX reductions
coupled with local VOC reductions.
Ohio EPA also noted that EPA had
commented on the regionalism of the
retired new source set aside allowances.
The ‘Utilities’ believe that withdrawal
and retirement of 240 new source set
aside allowances undermines the
stability of the regional NOX trading
program. Ohio EPA disagreed, and
noted that the retired allowances were
set aside, and unused, by new sources
in the specified time period, and that
such a small amount of retired new
source set aside allowances would not
have an impact on the budget trading
program.
The ‘Utilities’ commented that they
believe the retirement of NOX
allowances is unlawful under Ohio
statute, and that the Ohio EPA has no
authority to retire or otherwise remove
allowances from the pool. Ohio EPA
disagreed, noting that they have indeed
had the authority to retire or remove
allowances since the program’s
inception in 2002. Additionally, Ohio
EPA found it important to make clear
that a NOX budget allowance does not
constitute a property right.
The ‘Utilities’ commented that they
believe retiring allowances will not
create emission reductions because
sources can simply purchase more
allowances from anywhere in the U.S. at
the end of the ozone season. Ohio EPA
responded by noting that the point of
the NOX Budget Trading Program is not
to limit individual sources, but to limit
regional emissions, which-as they had
already stated-will benefit Cincinnati
and Dayton.
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The ‘Utilities’ comment that they had
provided Ohio EPA with an alternative
proposal for emission reductions in
2005, but Ohio EPA chose not to adopt
the proposal. Ohio EPA responded by
noting that the utilities’ proposal to
reduce emissions through compliance
with the NOX Budget Trading Program
could not be considered to garner
surplus emissions unless allowances
were retired to make those reductions
surplus. Ohio EPA noted that the
utilities did not appear to be willing to
retire the associated allowances.
A commenter representing American
Municipal Power (AMP) Ohio stated
that Ohio EPA had not demonstrated
that low-RVP gasoline was not available
for the 2006 ozone season. Ohio EPA
responded by noting the multitude of
issues which caused it to conclude that
institution of 7.8 RVP fuel was not an
option for the 2006 ozone season. The
reasons included a U.S. EPA survey
indicating that refinery production
capabilities for 7.8 RVP gasoline would
fall short for the Cincinnati and Dayton
areas, as well as lack of a preemption
waiver from U.S. EPA allowing the
adoption of low-RVP fuel. Additionally,
Ohio EPA noted that if it were to allow
noncompliant fuel into the area,
compliant suppliers providing low-RVP
fuel would be at a disadvantage.
A commenter representing AMP Ohio
stated that the Ohio EPA targeted NOX
budget sources for NOX reductions
without fully evaluating other
appropriate reduction sources. Ohio
EPA disagreed, noting that prior to
establishing the RVP fuel program for
Cincinnati and Dayton, they fully
evaluated numerous control strategies to
offset the emissions reduction shortfall
that resulted from closing the E-Check
program.
A commenter representing the Ohio
Manufacturers’ Association (OMA)
stated that Ohio’s manufacturing sector
only represents 7% of the state’s total
NOX emissions, yet the manufacturing
sector is being called on to, in their own
words, ‘‘solve the problem’’. Ohio EPA
noted that the effect of retiring 240
allowances on non-EGU’s would be very
small for a one-time allocation
adjustment. Ohio EPA noted that 15
non-EGU’s are participating in Ohio’s
NOX trading program, and two of those
units are shut down. Furthermore, of the
240 allowances being retired, non-EGU’s
represent 19 of the 240 allowances
spread across the 15 non-EGU facilities
whether still in operation or not.
IV. Review of the State’s Submittal
The State of Ohio has adopted
revisions to its NOX budget trading
program regulations. On October 11,
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2006, the State requested that EPA
approve these rule revisions for
incorporation into Ohio’s SIP.
Specifically, Ohio’s revisions to this
rule are:
OAC 3745–14–05 (C)(7):
Ohio inserted this new paragraph
which withholds and permanently
retires 240 new source set aside
allowances from the 2005 control period
to offset emission increases associated
with the termination of the E-Check
program in Cincinnati and Dayton.
These withheld and retired allowances
would normally have been allocated to
existing Ohio NOX budget sources in
2006.
On February 23, 2007, Ohio
supplemented its submittal with
information regarding NOX emission
reductions that have occurred in the
Cincinnati/Dayton area. This letter
identifies several actions that
substantially reduced NOX emissions
starting from before the 2006 ozone
season, which include installation of
selective catalytic reduction controls at
3 units and installation of low NOX
burners at 9 other units. Ohio estimates
that the total emission reduction from
these actions is over 10,000 tons per
ozone season.
In ordinary circumstances, an
emission limit can be imposed on a
specific source, and the surplus
emission reduction clearly occurs at the
location of that source. However, a
different relationship between
regulatory action and resulting emission
reductions applies to power plants and
other sources regulated under the NOX
SIP Call. The NOX SIP Call provides a
restricted set of allowances that allow a
reduced quantity of NOX emissions
across the entire NOX SIP Call region,
while maximizing the flexibility of
participants in the program to decide
where these reductions will occur. In
particular, allowances may be bought
and sold and used anywhere in the NOX
SIP Call region. Since the allowances
are not assigned to particular locations,
Ohio posed the question to EPA of how
best to pursue utility emission
reductions in the Cincinnati/Dayton
area to obtain creditable reductions.
EPA responded that reductions at
utilities could not be considered surplus
to the NOX SIP Call unless Ohio
provided for retirement of allowances,
but EPA added that Ohio had
substantial flexibility in what
allowances to retire.
Ohio’s action creates a surplus
reduction of 240 tons of NOX emissions.
This action fully conforms with EPA
regulations concerning the NOX SIP Call
and other relevant regulations, and so
this action is fully approvable. More at
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issue is whether this action may be
treated as fully offsetting the loss of 240
tons of NOX emission reductions (or its
VOC equivalent) from the
discontinuation of E-Check in the
Cincinnati and Dayton areas.
An important underpinning of the
NOX SIP Call is the interchangeability of
emission reductions, i.e. a finding that
the impacts of the emissions are
sufficiently regional in nature and
sufficiently insensitive to the spatial
distribution of the emission reductions
that EPA need not restrict where
allowances are used. This finding
underlying the NOX SIP Call has
important implications for Ohio’s action
in retiring allowances. EPA believes that
Ohio’s retirement of 240 allowances
may be credited to make 240 tons of the
actual emission reductions occurring in
the Cincinnati/Dayton area surplus. We
find that the retirement benefits
Cincinnati/Dayton air quality, and is
reasonable under the circumstances,
including the actual emissions
reductions in the area.
EPA believes that Ohio may
reasonably assign the surplus reductions
it has mandated to actual emission
reductions that have occurred in the
Cincinnati/Dayton area. Allowances
have no inherent geographic location.
That is, the allowances have no inherent
properties that dictate the location of
the emission reduction that is attributed
to a particular retirement of a particular
allowance. Substantial emission
reductions have occurred in the
Cincinnati/Dayton area. While most of
the reductions would be attributable to
the NOX SIP Call, EPA believes that
Ohio has latitude to attribute 240 tons
of the 2006 NOX emission reductions in
the Cincinnati/Dayton area to its
retirement of 240 allowances.
Furthermore, even if Ohio or EPA were
to associate the allowance retirement
with emission reductions in a
geographically broader area, EPA
believes that the corresponding air
quality benefit in the Cincinnati/Dayton
area would be similar to the benefit of
240 tons of NOX emission reductions
within the Cincinnati/Dayton area.
Indeed, the regional influence of NOX
emissions is the fundamental basis for
EPA to establish the NOX trading
program as a regional program without
restriction on where (within the trading
area) allowances may be used.
EPA views Ohio as having made
surplus 240 tons of the emission
reductions in 2006. The surplus
reductions that result from this
retirement provide significant benefit to
the Cincinnati/Dayton area, and it is
reasonable to assign 240 tons of NOX
emission reductions credit to the
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Federal Register / Vol. 72, No. 177 / Thursday, September 13, 2007 / Proposed Rules
Cincinnati/Dayton area, and to count
240 tons of the area’s actual reductions
as attributable to the retirement of 240
allowances. Therefore, EPA proposes to
approve this rule change, and to
conclude that Ohio has provided
compensatory emissions decreases for
discontinuing the E-Check program in
this area in the amount of 240 tons of
NOX emission reduction for the year
2006.
EPA received a January 12, 2007,
letter commenting on this issue from a
law firm on behalf of the Environmental
Committee of the Ohio Electric Utility
Institute. This law firm submitted
additional comments on February 15,
2007, and on March 13, 2007. EPA
views these letters as commenting on
the action being proposed here. EPA
will review these comments, and
address any comments it receives
during the comment period, as we
prepare final rulemaking on Ohio’s
submittal.
OAC 3745–14–05 (C)(8) through
(C)(10):
Ohio renumbered the existing
paragraphs (C)(7) through (C)(9) to (C)(8)
through (C)(10), in order to
accommodate the inclusion of the new
paragraph (C)(7). As the addition of a
new paragraph (C)(7) necessitates
renumbering the existing paragraphs,
we find this rule change to be
acceptable and approvable.
V. What action is EPA taking?
EPA is proposing to approve the
addition of paragraph (C)(7) to OAC
3745–14–05, and its incorporation into
the Ohio SIP, as adopted by the State of
Ohio, as defined in Ohio’s October 11,
2006, submittal. EPA is also proposing
to approve the renumbering of the
original OAC 3745–14–05 paragraphs
(C)(7) through (C)(9) to (C)(8) through
(C)(10), respectively. If EPA takes final
action as proposed here, EPA would
then retire 240 allowances from Ohio’s
new source set aside as instructed in
this rule. EPA proposes to conclude that
Ohio has thereby provided
compensatory emissions decreases for
discontinuing the E-Check program in
this area in the amount of 240 tons of
NOX emission reduction for the year
2006.
ebenthall on PRODPC61 with PROPOSALS
VI. Statutory and Executive Order
Reviews
Executive Order 12866: Regulatory
Planning and Review
Under Executive Order 12866 (58 FR
51735, September 30, 1993), this action
is not a ‘‘significant regulatory action’’
and, therefore, is not subject to review
VerDate Aug<31>2005
15:17 Sep 12, 2007
Jkt 211001
by the Office of Management and
Budget.
Paperwork Reduction Act
This proposed 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.).
Regulatory Flexibility Act
This proposed action merely proposes
to approve state law as meeting Federal
requirements and imposes no additional
requirements beyond those imposed by
state law. Accordingly, the
Administrator certifies that this
proposed 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.).
Unfunded Mandates Reform Act
Because this rule proposes to approve
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).
Executive Order 13132: Federalism
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
proposes to approve a state rule
implementing a Federal standard, and
does not alter the relationship or the
distribution of power and
responsibilities established in the Clean
Air Act.
Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
This proposed 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).
PO 00000
Frm 00024
Fmt 4702
Sfmt 4702
Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
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 is not
economically significant.
Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
Because it is not a ‘‘significant
regulatory action’’ under Executive
Order 12866 or a ‘‘significant regulatory
action,’’ 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).
National Technology Transfer
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (NTTAA), 15 U.S.C. 272,
requires Federal agencies to use
technical standards that are developed
or adopted by voluntary consensus to
carry out policy objectives, so long as
such standards are not inconsistent with
applicable law or otherwise impractical.
In reviewing SIP submissions, EPA’s
role is to approve state choices,
provided that they meet the criteria of
the Clean Air Act. Absent a prior
existing requirement for the state to use
voluntary consensus standards, EPA has
no authority to disapprove a SIP
submission for failure to use such
standards, and it would thus be
inconsistent with applicable law for
EPA to use voluntary consensus
standards in place of a program
submission that otherwise satisfies the
provisions of the Clean Air Act.
Therefore, the requirements of section
12(d) of the NTTA do not apply.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Intergovernmental
relations, Nitrogen dioxide, Reporting
and recordkeeping requirements.
Dated: September 4, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.
[FR Doc. E7–18061 Filed 9–12–07; 8:45 am]
BILLING CODE 6560–50–P
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Agencies
[Federal Register Volume 72, Number 177 (Thursday, September 13, 2007)]
[Proposed Rules]
[Pages 52320-52324]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-18061]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R05-OAR-2006-0976; FRL-8467-4]
Approval and Promulgation of Air Quality Implementation Plans;
Ohio; Oxides of Nitrogen Budget Trading Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: EPA is proposing to approve Ohio's request to permanently
retire 240 oxides of nitrogen (NOX) allowances from the
State's 2005 new source set aside, which would otherwise have been
distributed to existing sources that are required participants in the
State of Ohio's NOX budget. Under the Federal NOX
Budget Trading Program, each participating state receives a main pool
of `allowances', which are credits that permit a source to emit one ton
of NOX per allowance. Allowances are apportioned state-wide
to electricity generating units and other large NOX sources
which are subject to the budget trading program. Each year, a certain
number of allowances are set aside from the main pool by the State,
specifically for use by any new sources subject to the trading program
which may come
[[Page 52321]]
on-line during that year. If no new sources are created, and no new
source set aside allowances are used, the new source set aside
allowances are returned to the main pool of allowances for use the
following year.
Retiring 240 new source set aside allowances will provide surplus
emission reductions to help compensate for the discontinuation of
Ohio's `E-Check' motor vehicle inspection and maintenance (I/M) program
in the Cincinnati and Dayton areas for the year 2006 (Ohio is in the
process of seeking approval of the removal of E-Check from the State
Implementation Plan (SIP), which will be addressed in a separate
action). Withholding and permanently retiring 240 new source set aside
allowances from the year 2006 control period will provide 240 tons of
surplus NOX emission reductions that are creditable for
replacing reductions that otherwise would have occurred from the E-
Check program during the 2006 ozone season.
DATES: Comments must be received on or before October 15, 2007.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R05-
OAR-2006-0976, by one of the following methods:
1. https://www.regulations.gov: Follow the on-line instructions for
submitting comments.
2. E-mail: mooney.john@epa.gov.
3. Fax: (312) 886-5824.
4. Mail: John M. Mooney, Chief, Criteria Pollutant Section, Air
Programs Branch (AR-18J), U.S. Environmental Protection Agency, 77 West
Jackson Boulevard, Chicago, Illinois 60604.
5. Hand Delivery: John M. Mooney, Chief, Criteria Pollutant
Section, Air Programs Branch (AR-18J), U.S. Environmental Protection
Agency, 77 West Jackson Boulevard, Chicago, Illinois 60604. Such
deliveries are only accepted during the Regional Office normal hours of
operation, and special arrangements should be made for deliveries of
boxed information. The Regional Office official hours of business are
Monday through Friday, 8:30 a.m. to 4:30 p.m. excluding Federal
holidays.
Instructions: Direct your comments to Docket ID No. EPA-R05-OAR-
2006-0976. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit information that you consider to
be CBI or otherwise protected through www.regulations.gov or e-mail.
The www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through www.regulations.gov
your e-mail address will be automatically captured and included as part
of the comment that is placed in the public docket and made available
on the Internet. If you submit an electronic comment, EPA recommends
that you include your name and other contact information in the body of
your comment and with any disk or CD-ROM you submit. If EPA cannot read
your comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses. For additional
instructions on submitting comments, go to Section I of the
SUPPLEMENTARY INFORMATION section of this document.
Docket: All documents in the docket are listed in the
www.regulations.gov index. Although listed in the index, some
information is not publicly available, e.g., CBI or other information
whose disclosure is restricted by statute. Certain other material, such
as copyrighted material, will be publicly available only in hard copy.
Publicly available docket materials are available either electronically
in www.regulations.gov or in hard copy at the Environmental Protection
Agency, Region 5, Air and Radiation Division, 77 West Jackson
Boulevard, Chicago, Illinois 60604. This Facility is open from 8:30
a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. We
recommend that you telephone Anthony Maietta, Life Scientist, at (312)
353-8777 before visiting the Region 5 office.
FOR FURTHER INFORMATION CONTACT: Anthony Maietta, Life Scientist,
Criteria Pollutant Section, Air Programs Branch (AR-18J), Environmental
Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago,
Illinois 60604, (312) 353-8777, maietta.anthony@epa.gov.
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA. This supplementary information
section is arranged as follows:
I. What should I consider as I prepare my comments for EPA?
II. Does this proposed rule apply to me?
III. Background
A. Why has the State requested revisions to this rule?
B. When did the State submit the requested rule revisions to
EPA?
C. When did the State adopt these rule revisions, and have they
become effective?
D. When were public hearings held?
E. What comments did the State receive, and how did the State
respond?
IV. Review of the State's Submittal
V. What action is EPA taking?
VI. Statutory and Executive Order Reviews
I. What should I consider as I prepare my comments for EPA?
When submitting comments, remember to:
1. Identify the rulemaking by docket number and other identifying
information (subject heading, Federal Register date and page number).
2. Follow directions--The EPA may ask you to respond to specific
questions or organize comments by referencing a Code of Federal
Regulations (CFR) part or section number.
3. Explain why you agree or disagree; suggest alternatives and
substitute language for your requested changes.
4. Describe any assumptions and provide any technical information
and/or data that you used.
5. If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
6. Provide specific examples to illustrate your concerns, and
suggest alternatives.
7. Explain your views as clearly as possible, avoiding the use of
profanity or personal threats.
8. Make sure to submit your comments by the comment period deadline
identified.
II. Does this proposed rule apply to me?
This proposed rule affects electrical generation units (EGUs) as
well as large boilers which are subject to Ohio's NOX budget
trading program and are not considered to be ``new'' units under the
guidelines of the trading program. Affected units will not receive
certain excess new unit set aside allowances for the year 2006.
III. Background
A. Why has the State requested revisions to this rule?
On December 31, 2005, Ohio discontinued the motor vehicle
inspection and maintenance (I/M) programs, otherwise known as E-Check,
in the Cincinnati and Dayton areas. According to section 110(l) of the
Clean Air Act, EPA may not approve the
[[Page 52322]]
discontinuation of this program unless the State can demonstrate that
the revision will not interfere with attainment of the health-based
National Ambient Air Quality Standards. For this purpose, Ohio is
providing emission reductions that compensate for the emission increase
expected to result from discontinuation of E-Check. It should be noted
that Ohio is currently seeking approval of the removal of E-Check from
the SIP, which will be addressed in a separate rulemaking.
As compensation for the emissions reductions lost through the
discontinuation of E-Check, Ohio adopted requirements for low-
volatility gasoline and requirements for lower emissions from gas cans,
solvent degreasing, and automobile refinishing. EPA approved the gas
can, solvent degreasing, and automobile refinishing measures in a
rulemaking action published on March 30, 2007, (72 FR 15045). The
lower-volatility gasoline requirement was originally intended to be
implemented in 2006, but was delayed until June 2008. (For more
information see rulemaking published on May 25, 2007, at 72 FR 29269).
Without the low-volatility gasoline program to compensate for
emissions in 2006 resulting from discontinuation of E-Check, Ohio asked
EPA, in a May 6, 2005, letter, if emission control devices that were
installed on various power plants around the Cincinnati-Dayton area
could provide the compensatory NOX emissions reduction. In
our response, dated September 20, 2005, EPA noted that, while the
reductions clearly occurred and clearly provide both local and regional
air quality benefits, these actions would not be considered surplus
emission reductions because these reductions would have occurred anyway
through regular implementation of the Regional NOX Budget
Trading Program, otherwise known as the NOX SIP Call.
The NOX SIP Call created a market-based cap and trade
program to reduce NOX emissions from power plants and other
large sources across the Eastern half of the United States. The program
is designed to allow states to have greater flexibility to achieve
state-wide emission reductions with local as well as regional benefits.
Because the NOX SIP Call garners reductions which are not
source-specific, Ohio does not have the ability to decide exactly where
reductions will take place.
However, we noted that if Ohio were to withdraw and retire new
source set aside allowances, this action would yield surplus
reductions. By retiring new source set aside allowances that would
otherwise have been redistributed the following year for use by
existing sources subject to the trading program, Ohio has mandated a
reduction in emissions that EPA considers surplus reductions beyond the
reductions of the existing NOX SIP Call.
Ohio adopted changes to Ohio Administrative Code (OAC) Chapters
3745-72-01 and 3745-14-05, and submitted them for approval on October
11, 2006. These rules provide a revised start date for the use of low-
volatility gasoline and provide the necessary quantity of interim,
surplus NOX emission reductions through the permanent
retirement of new source set aside allowances from the State's
NOX budget trading program.
Withholding and retiring new source set aside allowances from the
year 2005 ensured that these allowances would not return to existing
NOX budget trading program sources in 2006, therefore
providing surplus emission reductions for 2006. As indicated above, the
portion of the submittal concerning low-volatility gasoline has been
addressed by EPA in a separate rulemaking action.
B. When did the State submit the requested rule revisions to EPA?
The Director of the Ohio Environmental Protection Agency (Ohio EPA)
submitted a request for EPA to approve revisions to OAC 3745-14-05
(NOX allowance allocations) in a letter dated October 11,
2006.
C. When did the State adopt these rule revisions, and have they become
effective?
The proposed rule language was filed as an emergency rule on April
24, 2006. A proposed permanent adoption package for this rule was filed
the same day. The Director of the Ohio Environmental Protection Agency
issued an order of adoption for permanent revisions to OAC 3745-14-05
on July 10, 2006. The effective date of this order was July 17, 2006.
EPA is rulemaking on the permanent rule revisions and is not acting on
the emergency rules.
D. When were public hearings held?
A public hearing on revisions to OAC 3745-14-05 was held on June 2,
2006, in Columbus, Ohio.
E. What comments did the State receive, and how did the State respond?
A commenter questioned the necessity of amending OAC rule 3745-14-
05; the commenter stated that the Cincinnati/Dayton area had already
monitored attainment, so meeting anti-backsliding regulations is not
necessary. Ohio EPA disagreed with the commenter, noting that the
Cincinnati area may still be monitoring nonattainment air quality at
four sites. Also, OEPA noted that the anti-backsliding elements of the
areas' 1-hour ozone nonattainment requirements cannot be removed;
therefore the State's proposed rule revisions are, in fact, necessary.
A commenter representing Buckeye Power, Inc., Columbus Southern
Power Company, Dayton Power & Light Company, Duke Energy, Ohio Power
Company, and Ohio Valley Electric Corporation (hereafter described as
the `Utilities') objected to the proposed rule revisions because local
reductions were being realized by applying regional reductions to
NOX budgets, which wouldn't necessarily have local benefit
to the Cincinnati/Dayton areas. Ohio EPA responded by noting that air
quality modeling indicates that the optimum scenario for reducing ozone
in the Cincinnati/Dayton areas is a combination of regional
NOX reductions coupled with local VOC reductions. Ohio EPA
also noted that EPA had commented on the regionalism of the retired new
source set aside allowances.
The `Utilities' believe that withdrawal and retirement of 240 new
source set aside allowances undermines the stability of the regional
NOX trading program. Ohio EPA disagreed, and noted that the
retired allowances were set aside, and unused, by new sources in the
specified time period, and that such a small amount of retired new
source set aside allowances would not have an impact on the budget
trading program.
The `Utilities' commented that they believe the retirement of
NOX allowances is unlawful under Ohio statute, and that the
Ohio EPA has no authority to retire or otherwise remove allowances from
the pool. Ohio EPA disagreed, noting that they have indeed had the
authority to retire or remove allowances since the program's inception
in 2002. Additionally, Ohio EPA found it important to make clear that a
NOX budget allowance does not constitute a property right.
The `Utilities' commented that they believe retiring allowances
will not create emission reductions because sources can simply purchase
more allowances from anywhere in the U.S. at the end of the ozone
season. Ohio EPA responded by noting that the point of the
NOX Budget Trading Program is not to limit individual
sources, but to limit regional emissions, which-as they had already
stated-will benefit Cincinnati and Dayton.
[[Page 52323]]
The `Utilities' comment that they had provided Ohio EPA with an
alternative proposal for emission reductions in 2005, but Ohio EPA
chose not to adopt the proposal. Ohio EPA responded by noting that the
utilities' proposal to reduce emissions through compliance with the
NOX Budget Trading Program could not be considered to garner
surplus emissions unless allowances were retired to make those
reductions surplus. Ohio EPA noted that the utilities did not appear to
be willing to retire the associated allowances.
A commenter representing American Municipal Power (AMP) Ohio stated
that Ohio EPA had not demonstrated that low-RVP gasoline was not
available for the 2006 ozone season. Ohio EPA responded by noting the
multitude of issues which caused it to conclude that institution of 7.8
RVP fuel was not an option for the 2006 ozone season. The reasons
included a U.S. EPA survey indicating that refinery production
capabilities for 7.8 RVP gasoline would fall short for the Cincinnati
and Dayton areas, as well as lack of a preemption waiver from U.S. EPA
allowing the adoption of low-RVP fuel. Additionally, Ohio EPA noted
that if it were to allow noncompliant fuel into the area, compliant
suppliers providing low-RVP fuel would be at a disadvantage.
A commenter representing AMP Ohio stated that the Ohio EPA targeted
NOX budget sources for NOX reductions without
fully evaluating other appropriate reduction sources. Ohio EPA
disagreed, noting that prior to establishing the RVP fuel program for
Cincinnati and Dayton, they fully evaluated numerous control strategies
to offset the emissions reduction shortfall that resulted from closing
the E-Check program.
A commenter representing the Ohio Manufacturers' Association (OMA)
stated that Ohio's manufacturing sector only represents 7% of the
state's total NOX emissions, yet the manufacturing sector is
being called on to, in their own words, ``solve the problem''. Ohio EPA
noted that the effect of retiring 240 allowances on non-EGU's would be
very small for a one-time allocation adjustment. Ohio EPA noted that 15
non-EGU's are participating in Ohio's NOX trading program,
and two of those units are shut down. Furthermore, of the 240
allowances being retired, non-EGU's represent 19 of the 240 allowances
spread across the 15 non-EGU facilities whether still in operation or
not.
IV. Review of the State's Submittal
The State of Ohio has adopted revisions to its NOX
budget trading program regulations. On October 11, 2006, the State
requested that EPA approve these rule revisions for incorporation into
Ohio's SIP. Specifically, Ohio's revisions to this rule are:
OAC 3745-14-05 (C)(7):
Ohio inserted this new paragraph which withholds and permanently
retires 240 new source set aside allowances from the 2005 control
period to offset emission increases associated with the termination of
the E-Check program in Cincinnati and Dayton. These withheld and
retired allowances would normally have been allocated to existing Ohio
NOX budget sources in 2006.
On February 23, 2007, Ohio supplemented its submittal with
information regarding NOX emission reductions that have
occurred in the Cincinnati/Dayton area. This letter identifies several
actions that substantially reduced NOX emissions starting
from before the 2006 ozone season, which include installation of
selective catalytic reduction controls at 3 units and installation of
low NOX burners at 9 other units. Ohio estimates that the
total emission reduction from these actions is over 10,000 tons per
ozone season.
In ordinary circumstances, an emission limit can be imposed on a
specific source, and the surplus emission reduction clearly occurs at
the location of that source. However, a different relationship between
regulatory action and resulting emission reductions applies to power
plants and other sources regulated under the NOX SIP Call.
The NOX SIP Call provides a restricted set of allowances
that allow a reduced quantity of NOX emissions across the
entire NOX SIP Call region, while maximizing the flexibility
of participants in the program to decide where these reductions will
occur. In particular, allowances may be bought and sold and used
anywhere in the NOX SIP Call region. Since the allowances
are not assigned to particular locations, Ohio posed the question to
EPA of how best to pursue utility emission reductions in the
Cincinnati/Dayton area to obtain creditable reductions. EPA responded
that reductions at utilities could not be considered surplus to the
NOX SIP Call unless Ohio provided for retirement of
allowances, but EPA added that Ohio had substantial flexibility in what
allowances to retire.
Ohio's action creates a surplus reduction of 240 tons of
NOX emissions. This action fully conforms with EPA
regulations concerning the NOX SIP Call and other relevant
regulations, and so this action is fully approvable. More at issue is
whether this action may be treated as fully offsetting the loss of 240
tons of NOX emission reductions (or its VOC equivalent) from
the discontinuation of E-Check in the Cincinnati and Dayton areas.
An important underpinning of the NOX SIP Call is the
interchangeability of emission reductions, i.e. a finding that the
impacts of the emissions are sufficiently regional in nature and
sufficiently insensitive to the spatial distribution of the emission
reductions that EPA need not restrict where allowances are used. This
finding underlying the NOX SIP Call has important
implications for Ohio's action in retiring allowances. EPA believes
that Ohio's retirement of 240 allowances may be credited to make 240
tons of the actual emission reductions occurring in the Cincinnati/
Dayton area surplus. We find that the retirement benefits Cincinnati/
Dayton air quality, and is reasonable under the circumstances,
including the actual emissions reductions in the area.
EPA believes that Ohio may reasonably assign the surplus reductions
it has mandated to actual emission reductions that have occurred in the
Cincinnati/Dayton area. Allowances have no inherent geographic
location. That is, the allowances have no inherent properties that
dictate the location of the emission reduction that is attributed to a
particular retirement of a particular allowance. Substantial emission
reductions have occurred in the Cincinnati/Dayton area. While most of
the reductions would be attributable to the NOX SIP Call,
EPA believes that Ohio has latitude to attribute 240 tons of the 2006
NOX emission reductions in the Cincinnati/Dayton area to its
retirement of 240 allowances. Furthermore, even if Ohio or EPA were to
associate the allowance retirement with emission reductions in a
geographically broader area, EPA believes that the corresponding air
quality benefit in the Cincinnati/Dayton area would be similar to the
benefit of 240 tons of NOX emission reductions within the
Cincinnati/Dayton area. Indeed, the regional influence of
NOX emissions is the fundamental basis for EPA to establish
the NOX trading program as a regional program without
restriction on where (within the trading area) allowances may be used.
EPA views Ohio as having made surplus 240 tons of the emission
reductions in 2006. The surplus reductions that result from this
retirement provide significant benefit to the Cincinnati/Dayton area,
and it is reasonable to assign 240 tons of NOX emission
reductions credit to the
[[Page 52324]]
Cincinnati/Dayton area, and to count 240 tons of the area's actual
reductions as attributable to the retirement of 240 allowances.
Therefore, EPA proposes to approve this rule change, and to conclude
that Ohio has provided compensatory emissions decreases for
discontinuing the E-Check program in this area in the amount of 240
tons of NOX emission reduction for the year 2006.
EPA received a January 12, 2007, letter commenting on this issue
from a law firm on behalf of the Environmental Committee of the Ohio
Electric Utility Institute. This law firm submitted additional comments
on February 15, 2007, and on March 13, 2007. EPA views these letters as
commenting on the action being proposed here. EPA will review these
comments, and address any comments it receives during the comment
period, as we prepare final rulemaking on Ohio's submittal.
OAC 3745-14-05 (C)(8) through (C)(10):
Ohio renumbered the existing paragraphs (C)(7) through (C)(9) to
(C)(8) through (C)(10), in order to accommodate the inclusion of the
new paragraph (C)(7). As the addition of a new paragraph (C)(7)
necessitates renumbering the existing paragraphs, we find this rule
change to be acceptable and approvable.
V. What action is EPA taking?
EPA is proposing to approve the addition of paragraph (C)(7) to OAC
3745-14-05, and its incorporation into the Ohio SIP, as adopted by the
State of Ohio, as defined in Ohio's October 11, 2006, submittal. EPA is
also proposing to approve the renumbering of the original OAC 3745-14-
05 paragraphs (C)(7) through (C)(9) to (C)(8) through (C)(10),
respectively. If EPA takes final action as proposed here, EPA would
then retire 240 allowances from Ohio's new source set aside as
instructed in this rule. EPA proposes to conclude that Ohio has thereby
provided compensatory emissions decreases for discontinuing the E-Check
program in this area in the amount of 240 tons of NOX
emission reduction for the year 2006.
VI. Statutory and Executive Order Reviews
Executive Order 12866: Regulatory Planning and Review
Under Executive Order 12866 (58 FR 51735, September 30, 1993), this
action is not a ``significant regulatory action'' and, therefore, is
not subject to review by the Office of Management and Budget.
Paperwork Reduction Act
This proposed 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.).
Regulatory Flexibility Act
This proposed action merely proposes to approve state law as
meeting Federal requirements and imposes no additional requirements
beyond those imposed by state law. Accordingly, the Administrator
certifies that this proposed 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.).
Unfunded Mandates Reform Act
Because this rule proposes to approve 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).
Executive Order 13132: Federalism
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 proposes to approve a state rule
implementing a Federal standard, and does not alter the relationship or
the distribution of power and responsibilities established in the Clean
Air Act.
Executive Order 13175: Consultation and Coordination With Indian Tribal
Governments
This proposed 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).
Executive Order 13045: Protection of Children From Environmental Health
and Safety Risks
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 is not economically
significant.
Executive Order 13211: Actions That Significantly Affect Energy Supply,
Distribution, or Use
Because it is not a ``significant regulatory action'' under
Executive Order 12866 or a ``significant regulatory action,'' 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).
National Technology Transfer Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (NTTAA), 15 U.S.C. 272, requires Federal agencies to use
technical standards that are developed or adopted by voluntary
consensus to carry out policy objectives, so long as such standards are
not inconsistent with applicable law or otherwise impractical. In
reviewing SIP submissions, EPA's role is to approve state choices,
provided that they meet the criteria of the Clean Air Act. Absent a
prior existing requirement for the state to use voluntary consensus
standards, EPA has no authority to disapprove a SIP submission for
failure to use such standards, and it would thus be inconsistent with
applicable law for EPA to use voluntary consensus standards in place of
a program submission that otherwise satisfies the provisions of the
Clean Air Act. Therefore, the requirements of section 12(d) of the NTTA
do not apply.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Intergovernmental
relations, Nitrogen dioxide, Reporting and recordkeeping requirements.
Dated: September 4, 2007.
Bharat Mathur,
Acting Regional Administrator, Region 5.
[FR Doc. E7-18061 Filed 9-12-07; 8:45 am]
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