Approval and Promulgation of Implementation Plans; Florida; Clean Air Interstate Rule, 58016-58020 [E7-19644]

Download as PDF 58016 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Rules and Regulations challenged later in proceedings to enforce its requirements. (See section 307(b)(2).) ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 List of Subjects in 40 CFR Part 52 [EPA–R04–OAR–2007–0360–200737; FRL– 8478–1] Environmental protection, Air pollution control, Carbon monoxide, Incorporation by reference, Intergovernmental relations, Nitrogen dioxide, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds. Approval and Promulgation of Implementation Plans; Florida; Clean Air Interstate Rule Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: Dated: September 20, 2007. Wayne Nastri, 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 F—California 2. Section 52.220 is amended by adding paragraph (c)(349) to read as follows: I § 52.220 Identification of plan. * * * * (c) * * * (349) San Francisco Bay Area Transportation Air Quality Conformity Protocol—Conformity Procedures and Interagency Consultation Procedures was submitted on December 20, 2006, by the Governor’s designee. (i) Incorporation by reference. (A) Association of Bay Area Governments (ABAG), Bay Area Air Quality Management District (BAAQMD), and Metropolitan Transportation Commission (MTC). (1) The San Francisco Bay Area Transportation Air Quality Conformity Protocol—Conformity Procedures (July 26, 2006) and San Francisco Bay Area Transportation Air Quality Conformity Protocol—Interagency Consultation Procedures (July 26, 2006), adopted by BAAQMD on July 19, 2006, by ABAG on July 20, 2006, and by MTC on July 26, 2006. * * * * * rfrederick on PROD1PC67 with RULES * [FR Doc. E7–20059 Filed 10–11–07; 8:45 am] BILLING CODE 6560–50–P VerDate Aug<31>2005 14:40 Oct 11, 2007 Jkt 214001 SUMMARY: EPA is taking final action to approve a revision to the Florida State Implementation Plan (SIP) submitted on March 16, 2007. This revision addresses the requirements of EPA’s Clean Air Interstate Rule (CAIR) promulgated on May 12, 2005, and subsequently revised on April 28, 2006, and December 13, 2006. EPA has determined that the SIP revision fully implements the CAIR requirements for Florida. As a result of this action, EPA will also withdraw, through a separate rulemaking, the CAIR Federal Implementation Plans (FIPs) concerning sulfur dioxide (SO2), nitrogen oxides (NOX) annual, and NOX ozone season emissions for Florida. The CAIR FIPs for all States in the CAIR region were promulgated on April 28, 2006, and subsequently revised on December 13, 2006. CAIR requires States to reduce emissions of SO2 and NOX that significantly contribute to, and interfere with maintenance of, the National Ambient Air Quality Standards (NAAQS) for fine particulates (PM2.5) 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, Florida 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 November 13, 2007. ADDRESSES: EPA has established a docket for this action under Docket ID No. EPA–R04–OAR–2007–0360. All documents in the docket are listed on the https://www.regulations.gov Web site. Although listed in the index, some DATES: PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 information is not publicly available, i.e., Confidential Business Information 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 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. EPA requests that if at all possible, you contact the person listed in the FOR FURTHER INFORMATION CONTACT section to schedule your inspection. The Regional Office’s official hours of business are Monday through Friday, 8:30 to 4:30, excluding federal holidays. FOR FURTHER INFORMATION CONTACT: Stacy Harder, Regulatory Development Section, Air Planning Branch, Air, Pesticides and Toxics Management Division, Region 4, U.S. Environmental Protection Agency, 61 Forsyth Street, SW., Atlanta, Georgia 30303–8960. The telephone number is (404) 562–9042. Ms. Harder can also be reached via electronic mail at harder.stacy@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 Florida’s CAIR SIP Submittal 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 Florida’s SIP submitted on March 16, 2007. In its SIP revision, Florida 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. Florida’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 E:\FR\FM\12OCR1.SGM 12OCR1 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Rules and Regulations rfrederick on PROD1PC67 with RULES 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 Florida. The Administrator’s action will delete and reserve 40 CFR 52.540 and 40 CFR 52.541, relating to the CAIR FIP obligations for Florida. The withdrawal of the CAIR FIPs for Florida 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 Florida. 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 Florida’s request to amend the SIP on August 2, 2007 (72 FR 42344). In that proposal, EPA also stated its intent to withdraw the FIP, as described above. The comment period closed on September 4, 2007. EPA received one comment from a consortium of regulated entities in support of our proposed approval. 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? 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 NAAQS for 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 VerDate Aug<31>2005 14:40 Oct 11, 2007 Jkt 214001 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, three years after the promulgation of the 8-hour ozone and PM2.5 NAAQS. III. What Are the General Requirements of CAIR and the CAIR FIPs? CAIR establishes State-wide emission budgets for SO2 and NOX and is to be implemented in two phases. The first phase of NOX reductions starts in 2009 and continues through 2014, while the first phase of SO2 reductions starts in 2010 and continues through 2014. The second phase of reductions for both NOX and SO2 starts in 2015 and continues thereafter. CAIR requires States to implement the budgets by either: (1) Requiring EGUs to participate in the EPA-administered cap-and-trade programs; or (2) adopting other control measures of the State’s choosing and demonstrating that such control measures will result in compliance with the applicable State SO2 and NOX budgets. The May 12, 2005, and April 28, 2006, CAIR rules provide model rules that States must adopt (with certain limited changes, if desired) if they want to participate in the EPA-administered trading programs. With two exceptions, only States that choose to meet the requirements of CAIR through methods that exclusively regulate EGUs are allowed to participate in the EPA-administered trading programs. One exception is for States that adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into the EPAadministered trading programs. The other exception is for States that include all non-EGUs from their NOX SIP Call trading programs in their CAIR NOX ozone season trading programs. IV. Analysis of Florida’s CAIR SIP Submittal A. State Budgets for Allowance Allocations In this action, EPA is taking final action to approve Florida’s SIP revision that adopts the budgets established for the State in CAIR, i.e., 99,445 (2009– 2014) and 82,871 (2015–thereafter) tons PO 00000 Frm 00015 Fmt 4700 Sfmt 4700 58017 for NOX annual emissions, 47,912 (2009–2014) and 39,926 (2015– thereafter) tons for NOX ozone season emissions, and 253,450 (2010–2014) and 177,415 (2015–thereafter) tons for SO2 emissions. Florida’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. Florida has committed to revising the definitions of ‘‘permitting authority’’ and ‘‘State’’ in its CAIR rules in order to ensure that allowances issued by all States with approved rules providing for participation in the respective EPAadministered cap-and-trade programs are fungible and can be traded and used by all sources in all these States, as intended. EPA determined after review of other States’ rules, but after Florida had adopted its CAIR rules, that there was an issue related to these definitions when they refer only to a specific State. In Florida’s rules for CAIR, the EPA model trading rules were revised to limit all references to ‘‘permitting authority’’ to refer to the Florida Department of Environmental Protection. Similarly, references to ‘‘State’’ were limited to refer to Florida. These changes are acceptable in most, but not all, instances under the current model rules. In certain definitions in the model rules incorporated by Florida (i.e., ‘‘allocate’’ or ‘‘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 and that the term ‘‘State’’ cover all such States. 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 May 24, 2007, EPA participated in a teleconference with Florida and outlined necessary definition revisions. EPA received a letter from Florida dated June 22, 2007, and a supplemental electronic mail submission on July 11, 2007, that provide a commitment to make these rule revisions in its CAIR rules in early 2008. Specifically, in the June 22, 2007, letter and supplemental submission on July 11, 2007, Florida commits to revising section 62– 296.470(1) of Florida’s rule to state that: The limitation of the ‘‘permitting authority’’ definition only to Florida does not apply when this term is used in the definitions of ‘‘ ‘allocate’ or ‘allocation’,’’ ‘‘CAIR NOX allowance,’’ ‘‘CAIR SO2 allowance,’’ and ‘‘CAIR NOX E:\FR\FM\12OCR1.SGM 12OCR1 58018 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Rules and Regulations rfrederick on PROD1PC67 with RULES Ozone Season allowance;’’ and the limitation of the ‘‘State’’ definition only to Florida does not apply when the term is used in the definitions of ‘‘CAIR NOX allowance,’’ ‘‘CAIR SO2 allowance,’’ and ‘‘CAIR NOX Ozone Season allowance.’’ 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 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 VerDate Aug<31>2005 14:40 Oct 11, 2007 Jkt 214001 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, Florida 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. Florida has adopted a full SIP revision (with the commitment to adopt 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 FIPs, 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 FIPs 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. Florida has chosen to adopt the provisions of the CAIR NOX annual model trading rule concerning the allocation of allowances based on methodology that is similar, but not identical, to that in the CAIR model trading rule for existing and new units. Under Florida’s rule and the CAIR model rule, existing units are allocated PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 NOX allowances in proportion to their ‘‘fuel-adjusted control period heat input’’ during the baseline period. However, in addition to the fuel adjustment factors used to calculate adjusted heat input in the CAIR model rule, Florida has also developed a separate 150% fuel factor for existing biomass-fired units that use best available control technology (BACT). Further, in Florida’s rule, as in the CAIR model rule, new units are allocated NOX allowances in proportion to their ‘‘converted control period heat input.’’ However, unlike the CAIR model rule, Florida’s rule categorizes new units as those commencing operation on or after January 1, 2007, (rather than January 1, 2001), and establishes a new unit set set-aside of five percent for all control years (rather than five percent through 2014 and three percent thereafter). Moreover, under Florida’s rule, allocations are scheduled to be made in 2006, 2009, and every three years thereafter, with three-year blocks of allocations being made generally four years in advance. Florida’s rule also limits the number of years for which permanently retired units are allocated allowances after retirement. Florida has chosen to replace the provisions of the CAIR NOX ozone season model trading rule concerning allowance allocations with its own methodology. Florida has chosen to distribute NOX ozone season allowances based upon the same allowance allocation methodology described above for NOX annual allowances. 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 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. E:\FR\FM\12OCR1.SGM 12OCR1 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Rules and Regulations 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. Florida has chosen to distribute CSP allowances using the allocation methodology provided in 40 CFR 96.143, and has adopted this section by reference. rfrederick on PROD1PC67 with RULES E. Individual Opt-In Units The opt-in provisions of the CAIR SIP model trading rules allow certain nonEGUs (i.e., boilers, combustion turbines, and other stationary fossil-fuel-fired devices) that do not meet the applicability criteria for a CAIR trading program to participate voluntarily in (i.e., opt into) the CAIR trading program. A non-EGU may opt into one or more of the CAIR trading programs. In order to qualify to opt into a CAIR trading program, a unit must vent all emissions through a stack and be able to meet monitoring, recordkeeping, and recording requirements of 40 CFR part 75. The owners and operators seeking to opt a unit into a CAIR trading program must apply for a CAIR opt-in permit. If the unit is issued a CAIR opt-in permit, the unit becomes a CAIR unit, is allocated allowances, and must meet the same allowance-holding and emissions monitoring and reporting requirements as other units subject to the CAIR trading program. The opt-in provisions provide for two methodologies for allocating allowances for opt-in units, one methodology that applies to opt-in units in general and a second methodology that allocates allowances only to opt-in units that the owners and operators intend to repower before January 1, 2015. States have several options concerning the opt-in provisions. States may adopt the CAIR opt-in provisions entirely or may adopt them but exclude one of the methodologies for allocating allowances. States may also decline to adopt the opt-in provisions at all. Florida has chosen not to allow nonEGUs meeting certain requirements to opt into the CAIR trading programs. V. Final Action EPA is taking final action to approve Florida’s full CAIR SIP revision submitted on March 16, 2007. Under this SIP revision, Florida 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 VerDate Aug<31>2005 14:40 Oct 11, 2007 Jkt 214001 (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 Florida. The Administrator’s action will delete and reserve 40 CFR 52.540 and 40 CFR 52.541. EPA will take final action to withdraw the CAIR FIPs for Florida 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, PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 58019 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 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 December 11, 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)). E:\FR\FM\12OCR1.SGM 12OCR1 58020 Federal Register / Vol. 72, No. 197 / Friday, October 12, 2007 / Rules and Regulations Dated: September 26, 2007. J.I. Palmer, Jr., Regional Administrator, Region 4. List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Intergovernmental relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping requirements, Sulfur oxides, Volatile organic compounds. I Subpart (K)—Florida 2. Section 52.520(c) is amended in the table by revising the entry for Section 62–210.200 in Chapter 62–210 and by adding in numerical order a new entry in Chapter 62–296 to read as follows: I 40 CFR part 52 is amended as follows: PART 52—[AMENDED] 1. The authority citation for part 52 continues to read as follows: I § 52.520 * Authority: 42 U.S.C. 7401 et seq. Identification of plan. * * (c) * * * * * EPA-APPROVED FLORIDA REGULATIONS State citation Chapter 62–210 * * Section 62–210.200 ............................ * * * Chapter 62–296 Section 62–296.470 ............................ * * * * * BILLING CODE 6560–50–P DEPARTMENT OF HOMELAND SECURITY Federal Emergency Management Agency 44 CFR Part 64 [Docket No. FEMA–7995] Suspension of Community Eligibility Federal Emergency Management Agency, DHS. ACTION: Final rule. rfrederick on PROD1PC67 with RULES AGENCY: SUMMARY: This rule identifies communities, where the sale of flood insurance has been authorized under the National Flood Insurance Program (NFIP), that are scheduled for suspension on the effective dates listed within this rule because of noncompliance with the floodplain management requirements of the program. If the Federal Emergency Management Agency (FEMA) receives documentation that the community has adopted the required floodplain management measures prior to the effective suspension date given in this rule, the suspension will not occur and a notice of this will be provided by VerDate Aug<31>2005 14:40 Oct 11, 2007 Jkt 214001 * 04/01/2007 * 10/12/07 [Insert citation of publication]. * * * Frm 00018 Fmt 4700 10/12/07 [Insert citation of publication]. * publication in the Federal Register on a subsequent date. EFFECTIVE DATES: The effective date of each community’s scheduled suspension is the third date (‘‘Susp.’’) listed in the third column of the following tables. ADDRESSES: If you want to determine whether a particular community was suspended on the suspension date, contact the appropriate FEMA Regional Office. FOR FURTHER INFORMATION CONTACT: David Stearrett, Mitigation Directorate, Federal Emergency Management Agency, 500 C Street SW., Washington, DC 20472, (202) 646–2953. SUPPLEMENTARY INFORMATION: The NFIP enables property owners to purchase flood insurance which is generally not otherwise available. In return, communities agree to adopt and administer local floodplain management aimed at protecting lives and new construction from future flooding. Section 1315 of the National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4022, prohibits flood insurance coverage as authorized under the NFIP, 42 U.S.C. 4001 et seq.; unless an appropriate public body adopts adequate floodplain management measures with effective enforcement measures. The communities listed in this document no longer meet that statutory requirement for compliance PO 00000 Explanation Stationary Sources—Emission Standards * [FR Doc. E7–19644 Filed 10–11–07; 8:45 am] * 04/01/2007 * Implementation of Federal Clean Air Interstate Rule. * EPA approval date Stationary Requirements—General Sources * * Definitions ........................................... * * State effective date Title/subject Sfmt 4700 * * with program regulations, 44 CFR part 59. Accordingly, the communities will be suspended on the effective date in the third column. As of that date, flood insurance will no longer be available in the community. However, some of these communities may adopt and submit the required documentation of legally enforceable floodplain management measures after this rule is published but prior to the actual suspension date. These communities will not be suspended and will continue their eligibility for the sale of insurance. A notice withdrawing the suspension of the communities will be published in the Federal Register. In addition, FEMA has identified the Special Flood Hazard Areas (SFHAs) in these communities by publishing a Flood Insurance Rate Map (FIRM). The date of the FIRM, if one has been published, is indicated in the fourth column of the table. No direct Federal financial assistance (except assistance pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act not in connection with a flood) may legally be provided for construction or acquisition of buildings in identified SFHAs for communities not participating in the NFIP and identified for more than a year, on FEMA’s initial flood insurance map of the community as having flood-prone areas (section 202(a) of the Flood E:\FR\FM\12OCR1.SGM 12OCR1

Agencies

[Federal Register Volume 72, Number 197 (Friday, October 12, 2007)]
[Rules and Regulations]
[Pages 58016-58020]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-19644]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2007-0360-200737; FRL-8478-1]


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

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: EPA is taking final action to approve a revision to the 
Florida State Implementation Plan (SIP) submitted on March 16, 2007. 
This revision addresses the requirements of EPA's Clean Air Interstate 
Rule (CAIR) promulgated on May 12, 2005, and subsequently revised on 
April 28, 2006, and December 13, 2006. EPA has determined that the SIP 
revision fully implements the CAIR requirements for Florida. As a 
result of this action, EPA will also withdraw, through a separate 
rulemaking, the CAIR Federal Implementation Plans (FIPs) concerning 
sulfur dioxide (SO2), nitrogen oxides (NOX) 
annual, and NOX ozone season emissions for Florida. The CAIR 
FIPs for all States in the CAIR region were promulgated on April 28, 
2006, and subsequently revised on December 13, 2006.
    CAIR requires States to reduce emissions of SO2 and 
NOX that significantly contribute to, and interfere with 
maintenance of, the National Ambient Air Quality Standards (NAAQS) for 
fine particulates (PM2.5) 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, Florida 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 November 13, 2007.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R04-OAR-2007-0360. 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., Confidential Business 
Information 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 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. EPA requests that if at all possible, you contact the 
person listed in the FOR FURTHER INFORMATION CONTACT section to 
schedule your inspection. The Regional Office's official hours of 
business are Monday through Friday, 8:30 to 4:30, excluding federal 
holidays.

FOR FURTHER INFORMATION CONTACT: Stacy Harder, Regulatory Development 
Section, Air Planning Branch, Air, Pesticides and Toxics Management 
Division, Region 4, U.S. Environmental Protection Agency, 61 Forsyth 
Street, SW., Atlanta, Georgia 30303-8960. The telephone number is (404) 
562-9042. Ms. Harder can also be reached via electronic mail at 
harder.stacy@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 Florida's CAIR SIP Submittal
    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 Florida's SIP 
submitted on March 16, 2007. In its SIP revision, Florida 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. Florida'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

[[Page 58017]]

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 Florida. The Administrator's action will delete and 
reserve 40 CFR 52.540 and 40 CFR 52.541, relating to the CAIR FIP 
obligations for Florida. The withdrawal of the CAIR FIPs for Florida 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 Florida. 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 Florida's request to amend the SIP on 
August 2, 2007 (72 FR 42344). In that proposal, EPA also stated its 
intent to withdraw the FIP, as described above. The comment period 
closed on September 4, 2007. EPA received one comment from a consortium 
of regulated entities in support of our proposed approval. 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?

    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 NAAQS for 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, 
three years after the promulgation of the 8-hour ozone and 
PM2.5 NAAQS.

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 Florida's CAIR SIP Submittal

A. State Budgets for Allowance Allocations

    In this action, EPA is taking final action to approve Florida's SIP 
revision that adopts the budgets established for the State in CAIR, 
i.e., 99,445 (2009-2014) and 82,871 (2015-thereafter) tons for 
NOX annual emissions, 47,912 (2009-2014) and 39,926 (2015-
thereafter) tons for NOX ozone season emissions, and 253,450 
(2010-2014) and 177,415 (2015-thereafter) tons for SO2 
emissions. Florida'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.
    Florida has committed to revising the definitions of ``permitting 
authority'' and ``State'' in its CAIR rules in order to ensure that 
allowances issued by all States with approved rules providing for 
participation in the respective EPA-administered cap-and-trade programs 
are fungible and can be traded and used by all sources in all these 
States, as intended. EPA determined after review of other States' 
rules, but after Florida had adopted its CAIR rules, that there was an 
issue related to these definitions when they refer only to a specific 
State.
    In Florida's rules for CAIR, the EPA model trading rules were 
revised to limit all references to ``permitting authority'' to refer to 
the Florida Department of Environmental Protection. Similarly, 
references to ``State'' were limited to refer to Florida. These changes 
are acceptable in most, but not all, instances under the current model 
rules. In certain definitions in the model rules incorporated by 
Florida (i.e., ``allocate'' or ``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 and that the term ``State'' cover all such States. 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 May 24, 2007, EPA participated in a teleconference with Florida 
and outlined necessary definition revisions. EPA received a letter from 
Florida dated June 22, 2007, and a supplemental electronic mail 
submission on July 11, 2007, that provide a commitment to make these 
rule revisions in its CAIR rules in early 2008. Specifically, in the 
June 22, 2007, letter and supplemental submission on July 11, 2007, 
Florida commits to revising section 62-296.470(1) of Florida's rule to 
state that: The limitation of the ``permitting authority'' definition 
only to Florida does not apply when this term is used in the 
definitions of `` `allocate' or `allocation','' ``CAIR NOX 
allowance,'' ``CAIR SO2 allowance,'' and ``CAIR 
NOX

[[Page 58018]]

Ozone Season allowance;'' and the limitation of the ``State'' 
definition only to Florida does not apply when the term is used in the 
definitions of ``CAIR NOX allowance,'' ``CAIR SO2 
allowance,'' and ``CAIR NOX Ozone Season allowance.''

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, Florida 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. Florida has adopted a full SIP revision (with 
the commitment to adopt 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 FIPs, 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 FIPs 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.
    Florida has chosen to adopt the provisions of the CAIR NOX 
annual model trading rule concerning the allocation of allowances based 
on methodology that is similar, but not identical, to that in the CAIR 
model trading rule for existing and new units. Under Florida's rule and 
the CAIR model rule, existing units are allocated NOX 
allowances in proportion to their ``fuel-adjusted control period heat 
input'' during the baseline period. However, in addition to the fuel 
adjustment factors used to calculate adjusted heat input in the CAIR 
model rule, Florida has also developed a separate 150% fuel factor for 
existing biomass-fired units that use best available control technology 
(BACT). Further, in Florida's rule, as in the CAIR model rule, new 
units are allocated NOX allowances in proportion to their 
``converted control period heat input.'' However, unlike the CAIR model 
rule, Florida's rule categorizes new units as those commencing 
operation on or after January 1, 2007, (rather than January 1, 2001), 
and establishes a new unit set set-aside of five percent for all 
control years (rather than five percent through 2014 and three percent 
thereafter). Moreover, under Florida's rule, allocations are scheduled 
to be made in 2006, 2009, and every three years thereafter, with three-
year blocks of allocations being made generally four years in advance. 
Florida's rule also limits the number of years for which permanently 
retired units are allocated allowances after retirement.
    Florida has chosen to replace the provisions of the CAIR NOX 
ozone season model trading rule concerning allowance allocations with 
its own methodology. Florida has chosen to distribute NOX 
ozone season allowances based upon the same allowance allocation 
methodology described above for NOX annual allowances. 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

    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.

[[Page 58019]]

    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.
    Florida 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.
    Florida has chosen not to allow non-EGUs meeting certain 
requirements to opt into the CAIR trading programs.

V. Final Action

    EPA is taking final action to approve Florida's full CAIR SIP 
revision submitted on March 16, 2007. Under this SIP revision, Florida 
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 Florida. The Administrator's action will 
delete and reserve 40 CFR 52.540 and 40 CFR 52.541. EPA will take final 
action to withdraw the CAIR FIPs for Florida 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 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 December 11, 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)).

[[Page 58020]]

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Intergovernmental 
relations, Nitrogen oxides, Ozone, Particulate matter, Reporting and 
recordkeeping requirements, Sulfur oxides, Volatile organic compounds.

    Dated: September 26, 2007.
J.I. Palmer, Jr.,
Regional Administrator, Region 4.

0
40 CFR part 52 is amended as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart (K)--Florida

0
2. Section 52.520(c) is amended in the table by revising the entry for 
Section 62-210.200 in Chapter 62-210 and by adding in numerical order a 
new entry in Chapter 62-296 to read as follows:


Sec.  52.520  Identification of plan.

* * * * *
    (c) * * *

                                                            EPA-Approved Florida Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      State
            State citation                   Title/subject       effective date           EPA approval date                       Explanation
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                 Chapter 62-210 Stationary Requirements--General Sources
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
Section 62-210.200...................  Definitions.............      04/01/2007  10/12/07 [Insert citation of
                                                                                  publication].
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                  Chapter 62-296 Stationary Sources--Emission Standards
--------------------------------------------------------------------------------------------------------------------------------------------------------
Section 62-296.470...................  Implementation of             04/01/2007  10/12/07 [Insert citation of
                                        Federal Clean Air                         publication].
                                        Interstate Rule.
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

* * * * *
 [FR Doc. E7-19644 Filed 10-11-07; 8:45 am]
BILLING CODE 6560-50-P
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