Approval and Promulgation of Air Quality Implementation Plans; Connecticut; State Implementation Plan Revision to Implement the Clean Air Interstate Rule, 4105-4109 [E8-1183]
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Federal Register / Vol. 73, No. 16 / Thursday, January 24, 2008 / Rules and Regulations
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R01–OAR–2007–0399; FRL–8517–4]
Approval and Promulgation of Air
Quality Implementation Plans;
Connecticut; State Implementation
Plan Revision to Implement the Clean
Air Interstate Rule
Environmental Protection
Agency (EPA).
ACTION: Final rule.
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AGENCY:
SUMMARY: EPA is approving a State
Implementation Plan (SIP) revision
submitted by the State of Connecticut
on April 26, 2007, with amendments
submitted on September 12, 2007. This
SIP 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
Connecticut. Therefore, as a
consequence of the SIP approval, the
Administrator of EPA will also, in a
separate document, issue a final rule to
withdraw the Federal Implementation
Plan (FIP) concerning NOX ozoneseason emissions for Connecticut.
In the SIP revision that EPA is
approving, Connecticut will meet CAIR
requirements by participating in the
EPA-administered cap-and-trade
program addressing NOX ozone-season
emissions. Connecticut’s SIP revision is
based on EPA’s model CAIR NOX ozone
season rule and is, in most respects,
substantively identical to that model
rule. The Connecticut CAIR program has
two major substantive differences from
that model rule (expanded applicability,
and a different methodology for
allocating NOX allowances), both of
which are consistent with the flexibility
allowed under CAIR for state
participation in the EPA-administered
cap-and-trade program. The SIP revision
complies with the statutory and
regulatory requirements for approval of
a CAIR NOX ozone-season program.
This action is being taken in accordance
with the Clean Air Act.
DATES: Effective Date: This rule is
effective on January 24, 2008.
ADDRESSES: EPA has established a
docket for this action under Docket
Identification No. EPA–R01–OAR–
2007–0399. All documents in the docket
are listed on the www.regulations.gov
Web site. Although listed in the index,
some information is not publicly
available, i.e., CBI or other information
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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
www.regulations.gov or in hard copy at
the Office of Ecosystem Protection, U.S.
Environmental Protection Agency, EPA
New England Regional Office, One
Congress Street, Suite 1100, Boston,
MA. EPA requests that, if at all possible,
you contact the contact 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 legal holidays.
Copies of the documents relevant to
this action are also available for public
inspection during normal business
hours, by appointment at the Bureau of
Air Management, Department of
Environmental Protection, State Office
Building, 79 Elm Street, Hartford, CT
06106–1630.
FOR FURTHER INFORMATION CONTACT: If
you have questions concerning today’s
action, please contact Alison C. Simcox,
Air Quality Planning Unit, U.S.
Environmental Protection Agency, EPA
New England Regional Office, One
Congress Street, Suite 1100 (CAQ),
Boston, MA 02114–2023, telephone
number (617) 918–1684, fax number
(617) 918–0684, e-mail
simcox.alison@epa.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What Action Is EPA Taking?
II. What are the Regulatory History and
General Requirements of CAIR and the
CAIR FIPs?
III. EPA Analysis of Connecticut’s CAIR SIP
Submittal
A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. Applicability Provisions for non-EGUs
NOX SIP Call Sources
D. NOX Allowance Allocations
E. Individual Opt-in Units
IV. Final Action
V. When Is This Action Effective?
VI. Statutory and Executive Order Reviews
I. What Action Is EPA Taking?
EPA is approving a revision to
Connecticut’s SIP that includes a new
regulation, Regulations of Connecticut
State Agencies (RCSA) section 22a–174–
22c, ‘‘The Clean Air Interstate Rule
(CAIR) Nitrogen Oxides (NOX) Ozone
Season Trading Program’’ (herein called
‘‘Connecticut’s CAIR program’’), repeal
of RCSA section 22a–174–22a (‘‘The
Connecticut NOX Budget Program’’), as
of September 4, 2007, and repeal of
RCSA section 22a–174–22b, ‘‘The
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Connecticut Post-2002 NOX Budget
Program’’ (herein called the
‘‘Connecticut NOX SIP Call trading
program’’), as of May 1, 2010. This SIP
revision was first submitted on April 26,
2007, but includes amendments
submitted on September 12, 2007.
The CT DEP had requested that EPA
‘‘parallel process’’ Connecticut’s
proposed CAIR SIP revision. Under this
procedure, EPA prepared its proposed
approval of Connecticut’s SIP revision
before the state’s final adoption and
repeal of the regulations referenced
above.
EPA has reviewed Connecticut’s final
adopted regulations and determined
that changes were made to clarify
meaning, improve consistency, or to
address redundancy, and that they do
not differ significantly from the ‘‘posthearing final draft’’ version that was the
subject of the notice of proposed
rulemaking (NPR) for this SIP Revision
(72 FR 50305). For example, definitions
of ‘‘commence commercial operation’’
and ‘‘commence operation’’ were
clarified; the word ‘‘through’’ was
substituted for a hyphen between dates
listed to clearly identify the control
periods included in the regulation; and
language was added to clarify that the
term ‘‘permitting authority’’ has the
same meaning as in 40 CFR part 96,
subpart AAAA, which refers to the
CAIR NOX Ozone Season Trading
Program. None of the changes made are
deemed significant for SIP approval
purposes, and it is, therefore,
appropriate to prepare this final rule.
In its SIP revision, Connecticut will
meet CAIR requirements by requiring
certain electric generating units (EGUs)
to participate in the EPA-administered
State CAIR cap-and-trade program
addressing NOX ozone-season
emissions. EPA has determined that the
Connecticut SIP, as revised, meets the
applicable requirements of CAIR. As a
consequence of the SIP approval, the
Administrator of EPA will also, in a
separate document, issue a final rule to
withdraw the FIP concerning NOX
ozone-season emissions for Connecticut.
That action will delete and reserve 40
CFR 52.386. The withdrawal of the
CAIR FIP for Connecticut is a
conforming amendment that must be
made once the SIP is approved because
EPA’s authority to issue the FIP was
premised on a deficiency in the SIP for
Connecticut. Once the SIP is fully
approved, EPA no longer has authority
for the FIP. Thus, EPA will not have the
option of maintaining the FIP following
the full SIP approval. Accordingly, EPA
does not intend to offer an opportunity
for a public hearing or an additional
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opportunity for written public comment
on the withdrawal of the FIP.
A. State Budgets for Allowance
Allocations
II. What Is the Regulatory History and
General Requirements of CAIR and the
CAIR FIPs?
The CAIR NOX annual and ozone
season budgets were developed from
historical heat input data for EGUs.
Using these data, EPA calculated annual
and ozone season regional heat input
values, which were multiplied by 0.15
pounds per million British thermal
units (lb/mmBtu), for phase 1 of the
CAIR program (2009–2014) and by
0.125 lb/mmBtu, for phase 2 of the CAIR
program (2015 and thereafter) to obtain
regional NOX budgets for 2009–2014
and for 2015 and thereafter,
respectively. EPA derived the State NOX
annual and ozone season budgets from
the regional budgets using State heat
input data adjusted by fuel factors.
Connecticut, however, is only required
to participate in the CAIR NOX ozoneseason program, not the CAIR NOX
annual or SO2 trading programs.
Therefore, only CAIR NOX ozone-season
budgets apply to the Connecticut CAIR
program.
In today’s action, EPA is approving
Connecticut’s SIP revision, which
includes a new regulation, 22a–174–
22c, which comprises Connecticut’s
CAIR program. This SIP revision adopts
the budget established for the State in
CAIR, i.e., 2,559 tons of NOX ozoneseason emissions for CAIR phases 1 and
2, plus an additional 132 tons of NOX
ozone-season emissions for both phases
1 and 2 to account for NOX emissions
from ‘‘non-EGUs’’ from the Connecticut
NOX SIP Call trading program. The total
NOX ozone-season budget is therefore
2,691 tons of NOX ozone-season
emissions for CAIR phases 1 and 2.
Connecticut’s SIP revision sets this
budget as the total number of
allowances (with each allowance
authorizing one ton of NOX ozoneseason emissions) available for
allocation for each year under the EPAadministered CAIR cap-and-trade
program.
The Clean Air Interstate Rule (CAIR)
was published by EPA on May 12, 2005
(70 FR 25162). In this rule, EPA
determined that 28 States and the
District of Columbia contribute
significantly to nonattainment and
interfere with maintenance of the
national ambient air quality standards
(NAAQS) for fine particles (PM2.5) and/
or 8-hour ozone in downwind States in
the eastern part of the country. As a
result, EPA required those upwind
States to revise their SIPs to include
control measures that reduce emissions
of SO2, which is a precursor to PM2.5
formation, and/or NOX, which is a
precursor to both ozone and PM2.5
formation. For jurisdictions that
contribute significantly to downwind
PM2.5 nonattainment, CAIR sets annual
State-wide emission reduction
requirements (i.e., budgets) for SO2 and
annual State-wide emission reduction
requirements for NOX. Similarly, for
jurisdictions that contribute
significantly to 8-hour ozone
nonattainment, CAIR sets State-wide
emission reduction requirements for
NOX for the ozone season (May 1st to
September 30th). Under CAIR, States
may implement these reduction
requirements by participating in the
EPA-administered cap-and-trade
programs or by adopting other control
measures. 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.
More information on the regulatory
history and requirements of CAIR and
the CAIR FIPs is available in the NPR
and will not be restated here.
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III. EPA Analysis of Connecticut’s CAIR
SIP Submittal
A brief summary of EPA’s review of
Connecticut’s CAIR program is given
below. Additional details regarding
requirements of Connecticut’s 22a–174–
22c regulation and EPA’s evaluation of
this regulation are available in the NPR
for this SIP revision. In addition,
Connecticut’s CAIR SIP submittal is
available in the docket supporting this
action.
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B. CAIR Cap-and-Trade Programs
The CAIR NOX annual and ozoneseason model trading rules both largely
mirror the structure of the NOX SIP Call
model trading rule in 40 CFR part 96,
subparts A through I. While the
provisions of the NOX annual and
ozone-season model rules are similar,
there are some differences. For example,
the NOX ozone season model rule
reflects the fact that the CAIR NOX
ozone-season trading program replaces
the NOX SIP Call trading program after
the 2008 ozone-season and is
coordinated with the NOX SIP Call
program. The NOX ozone-season model
rule provides incentives for early
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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 requirements by participating
in the CAIR NOX ozone season trading
program and including all their NOX SIP
Call trading sources in that program.
In the SIP revision, Connecticut will
implement its CAIR budgets by
requiring EGUs (as well as ‘‘non-EGUs’’
from its NOX SIP Call trading program,
as discussed below) to participate in
EPA-administered cap-and-trade
programs for NOX ozone-season
emissions. Connecticut has adopted a
full SIP revision that adopts, with
certain allowed changes discussed
below, the CAIR model cap-and-trade
rules for NOX ozone-season emissions.
C. Applicability Provisions for Non-EGU
NOX SIP Call Sources
In general, the CAIR model trading
rules apply to any stationary, fossil-fuelfired boiler or stationary, fossil-fuelfired combustion turbine serving at any
time, since the later of November 15,
1990 or the start-up of the unit’s
combustion chamber, a generator with
nameplate capacity of more than 25
MWe producing electricity for sale.
States have the option of bringing in,
for the CAIR NOX ozone-season program
only, those units in the State’s NOX SIP
Call trading program that are not EGUs
as defined under CAIR (herein called
‘‘non-EGUs’’). Under this option, the
CAIR NOX ozone-season program must
cover all large industrial boilers and
combustion turbines, as well as any
small EGUs (i.e., units serving a
generator with a nameplate capacity of
25 MWe or less) that the State currently
requires to be in the NOX SIP Call
trading program.
Connecticut has chosen to expand the
applicability provisions of the CAIR
NOX ozone season trading program to
include all units in the State’s NOX SIP
Call trading program. Units in the
Connecticut NOX SIP Call trading
program include EGUs of 15 MW or
more and non-EGUs (such as industrial
boilers and combustion turbines) with a
maximum design heat input of 250
MMBtu/hr or more. These units will be
included in the Connecticut CAIR
program beginning with the control
period in 2009. EPA has determined
that Connecticut’s regulation 22a–174–
22c includes the allowable CAIR
applicability provisions relating to
adding all NOX SIP Call trading-program
units to the Connecticut CAIR NOX
ozone season program.
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D. NOX Allowance Allocations
Deadlines: CAIR provides in 40 CFR
51.123(aa)(2)(iii)(C) that for a full SIP
revision, ‘‘[t]he State’s methodology
must require that, for EGUs
commencing operation before January 1,
2001, the State will determine, and
notify the Administrator of, each unit’s
allocation of CAIR NOX allowances by
October 31, 2006 for the ozone seasons
2009, 2010, and 2011.’’ Connecticut’s
SIP revision requires that it submit and
it in fact did submit these allocations by
April 30, 2007 (the deadline for
submittal applicable to abbreviated SIP
revisions under 40 CFR
51.123(ee)(2)(ii)(C)). The purpose of the
October 31, 2006 deadline was to allow
EPA’s Clean Air Markets Division
sufficient time to process the
allocations. At this point, as
Connecticut has in fact submitted its
allocations well before the date of this
document, and as the Clean Air Markets
Division is fully able to process the
allocations, it makes no difference
whether EPA received the 2009–2011
allocations in April of 2007 or October
of 2006. EPA will still be able to record
the allocations and provide the
allowances to owners and operators
sufficiently in advance of the 2009–2011
control periods. EPA considers the late
submittal harmless error and
consequently approves this SIP revision.
NOX allowance-allocation
methodology: Under the NOX
allowance-allocation methodology in
the CAIR model trading rules and in the
CAIR FIP, NOX annual and ozoneseason allowances are allocated to units
that have operated for five years (i.e.,
‘‘existing units’’), based on heat input
data from a three-year period that are
adjusted for fuel type by using fuel
factors of 1.0 for coal, 0.6 for oil, and 0.4
for other fuels. The CAIR model trading
rules and the CAIR FIP also provide a
new unit set-aside from which units
without five years of operation are
allocated allowances based on the units’
prior year emissions.
States may establish in their SIP
submissions a different NOX allowanceallocation methodology that will be
used to allocate allowances to sources in
the State 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;
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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.
Connecticut has chosen to replace the
provisions of the CAIR NOX ozoneseason model trading rule concerning
allowance allocations with its own
methodology. Connecticut’s CAIR
program is codified at RCSA section
22a–174–22c. Whereas the model
trading rule uses an allocation
methodology that is fuel-adjusted and
based on heat input, Connecticut’s
allocation methodology is not fueladjusted and is largely based on heat
output. Connecticut also provides a
percentage of allowances for a new unit
set-aside and for an energy efficiency/
renewable energy set-aside (EERESA)
and Qualifying Other Project (QOPs).
For the 2009 through 2011 control
periods, Connecticut will first allocate
NOX allowances to CAIR NOX Ozone
Season units which are cogeneration,
industrial or waste-tire-fired units on an
input basis, then will allocate
allowances to older EGUs using an
output basis. Remaining allocations will
be allocated to newer EGUs on a prorated output basis. For the 2012 control
period and beyond, Connecticut will
allocate allowances to both older and
newer EGUs on a pro-rated output basis.
Connecticut has set a new unit setaside at 7 percent of the State’s CAIR
budget during CAIR phase 1 (2009–
2014), and at 5 percent of the State’s
CAIR budget during CAIR phase 2 (2015
and thereafter). Therefore, the new unit
set-aside includes 200 CAIR NOX ozoneseason allowances during CAIR phase 1,
and 134 allowances during CAIR phase
2. Connecticut has set the EERESA at 10
percent of the State’s CAIR budget for
both phases of the CAIR program.
Therefore, the EERESA includes 268
CAIR NOX allowances for the 2009 and
subsequent ozone-season control
periods.
More details on Connecticut’s
methodology for allocating CAIR
allowances, as well as information on
Connecticut CAIR permits and
requirements for facilities to report
emissions data, can be found in the NPR
and in Connecticut’s CAIR SIP submittal
available in the docket supporting this
action.
In the NPR, EPA identified two
potential ambiguities in the allocation
provisions of Connecticut’s proposed
CAIR program, and proposed its
interpretations of those provisions. See
72 FR 50309. EPA received no
comments regarding these proposed
interpretations. Consequently, EPA
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interprets the provisions involved as
follows.
First, the proposed regulation uses the
term ‘‘NO[X] allowance,’’ which is not
defined, in three places. See RCSA
sections 22a–174–22c(c)(2), 22a–174–
22c(c)(3)(B), 22a–174–22c(g)(4). EPA
interprets the term ‘‘NO[X] allowance’’
when used in RCSA section 22a–174–
22c as being identical to the term ‘‘CAIR
NO[X] Ozone Season allowance’’ as
defined at 40 CFR 96.302.
Second, under RCSA sections 22a–
174–22c(e)(7)(A) and (B) and 22a–174–
22c(e)(8)(A), there is no limit to the
number of allowances that can be
allocated to CAIR NOX Ozone Season
units which are cogeneration units,
industrial units, waste-tire-fired units,
or Phase I units in any control period.
For purposes of construing
Connecticut’s proposed SIP revision,
EPA interprets RCSA sections 22a–174–
22c(e)(2) and 22a–174–22c(e)(3) to
prohibit the Connecticut DEP from
allocating allowances in excess of the
total state budget, and to control in any
conflict with RCSA sections 22a–174–
22c(e)(7)(A) and (B) and 22a–174–
22c(e)(8)(A). Thus, if the operation of
RCSA sections 22a–174–22c(e)(7)(A)–
(B) and/or 22a–174–22c(e)(8)(A) were to
yield allowances for CAIR NOX Ozone
Season units which are cogeneration
units, industrial units, waste-tire-fired
units, or Phase I units in excess of the
state budget, either by themselves or in
combination with allocations to other
categories, then RCSA sections 22a–
174–22c(e)(2) and 22a–174–22c(e)(3)
would require the Connecticut DEP to
recalculate or reallocate allowances so
as not to exceed the state budget.
EPA has relied on these
interpretations of Connecticut’s
proposed SIP revision for the purposes
of approving it as meeting the
requirements of the Act and the CAIR
program, and these interpretations
represent EPA’s formal interpretations
of the SIP provisions at issue for
purposes of federal law.
E. Individual Opt-in Units
The Connecticut CAIR SIP does not
include opt-in provisions because the
State has chosen to allocate CAIR
allowances using an energy-output
methodology that cannot be used for
opt-in sources under the model CAIR
NOX ozone-season trading rule. In
addition, Connecticut does not expect
there to be a demand for opt-in
provisions as no source opted into
Connecticut’s NOX SIP Call trading
program.
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IV. Final Action
EPA is approving a revision to
Connecticut’s SIP that includes a new
regulation, RCSA section 22a–174–22c
(Connecticut’s CAIR program), and
repeal of RCSA section 22a–174–22a
(‘‘The Connecticut NOX Budget
Program’’), as of September 4, 2007, and
of RCSA section 22a–174–22b (‘‘The
Connecticut Post-2002 NOX Budget
Program’’), as of May 1, 2010. Under
this SIP revision, Connecticut will
participate in the EPA-administered
cap-and-trade program for NOX ozoneseason emissions. The SIP revision
meets the applicable requirements in 40
CFR 51.123(o) and (aa), with regard to
NOX ozone season emissions. EPA has
determined that the SIP as revised meets
the requirements of CAIR. As a
consequence of the SIP approval, the
Administrator of EPA will also issue,
without providing an opportunity for a
public hearing or an additional
opportunity for written public
comment, a final rule to withdraw the
CAIR FIP concerning NOX ozone-season
emissions for Connecticut. That action
will delete and reserve 40 CFR 52.386
in part 52.
Other specific requirements of the
CAIR SIP revision and the rationale for
EPA’s approval are explained in the
NPR and will not be restated here. No
public comments were received on the
NPR.
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V. When Is This Action Effective?
EPA finds that there is good cause for
this approval to become effective on the
date of publication of this action in the
Federal Register, because a delayed
effective date is unnecessary due to the
nature of the approval, which allows the
State to make allocations under its CAIR
rules. The expedited effective date for
this action is authorized under both 5
U.S.C. 553(d)(1), which provides that
rule actions may become effective less
than 30 days after publication if the rule
‘‘grants or recognizes an exemption or
relieves a restriction’’ and 5 U.S.C.
553(d)(3), which allows an effective date
less than 30 days after publication ‘‘as
otherwise provided by the agency for
good cause found and published with
the rule.’’ CAIR SIP approvals exempt
states and CAIR sources within states
from being subject to allowance
allocation provisions in the CAIR FIPs
that otherwise would apply, allowing
States to make their own allowance
allocations based on their SIP-approved
State rule. The exemption from these
obligations is sufficient reason to allow
an expedited effective date of this rule
under 5 U.S.C. 553(d)(1). In addition,
Connecticut’s exemption from these
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obligations provides good cause to make
this rule effective on the date of
publication of this action in the Federal
Register, pursuant to 5 U.S.C. 553(d)(3).
The purpose of the 30-day waiting
period prescribed in 5 U.S.C. 553(d) is
to give affected parties a reasonable time
to adjust their behavior and prepare
before the final rule takes effect. Where,
as here, the final rule grants an
exemption rather than imposing
obligations, and where the effect of the
final rule is simply to approve for
federal purposes obligations that are
already effective under state law,
affected parties, such as the State of
Connecticut and CAIR sources within
the State, do not need time to adjust and
prepare before the rule takes effect.
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 imposes no additional
requirements beyond those imposed by
state law. Accordingly, the
Administrator certifies that this rule
will not have a significant economic
impact on a substantial number of small
entities under the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.). Because this
rule approves pre-existing requirements
under state law and does not impose
any additional enforceable duty beyond
that required by state law, it does not
contain any unfunded mandate or
significantly or uniquely affect small
governments, as described in the
Unfunded Mandates Reform Act of 1995
(Pub. L. 104–4).
This rule also does not have tribal
implications because it will not have a
substantial direct effect on one or more
Indian tribes, on the relationship
between the Federal Government and
Indian tribes, or on the distribution of
power and responsibilities between the
Federal Government and Indian tribes,
as specified by Executive Order 13175
(65 FR 67249, November 9, 2000). This
action also does not have Federalism
implications because it does not have
substantial direct effects on the States,
on the relationship between the national
government and the States, or on the
distribution of power and
responsibilities among the various
levels of government, as specified in
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Executive Order 13132 (64 FR 43255,
August 10, 1999), because it 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
Clean Air Act. 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 Clean Air Act. In this context, in the
absence of a prior existing requirement
for the State to use voluntary consensus
standards (VCS), EPA has no authority
to disapprove a SIP submission for
failure to use VCS. It would thus be
inconsistent with applicable law for
EPA, when it reviews a SIP submission,
to use VCS in place of a SIP submission
that otherwise satisfies the provisions of
the Clean Air Act. Thus, the
requirements of section 12(d) of the
National Technology Transfer and
Advancement Act of 1995 (15 U.S.C.
272 note) do not apply. This rule does
not impose an information collection
burden under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. 3501 et seq.)
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this rule and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2).
Under section 307(b)(1) of the Clean
Air Act, petitions for judicial review of
this action must be filed in the United
States Court of Appeals for the
appropriate circuit by March 24, 2008.
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
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Federal Register / Vol. 73, No. 16 / Thursday, January 24, 2008 / Rules and Regulations
§ 52.370
enforce its requirements. (See section
307(b)(2).)
Identification of plan.
*
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Nitrogen oxides, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur dioxide.
Dated: January 15, 2008.
Robert W. Varney,
Regional Administrator, EPA New England.
Part 52 of 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 H—Connecticut
2. Section 52.370 is amended by
revising paragraph (c)(80)(i)(B) and
adding paragraphs (c)(86)(iii) and (c)(97)
to read as follows:
I
*
*
*
*
(c) * * *
(80) * * * .
(i) * * *
(B) Regulation section 22a–174–22a,
‘‘The Nitrogen Oxides (NOX) Budget
Program’’ adopted on December 15,
1998, and effective on March 3, 1999.
As of January 24, 2008, Section 22a–
174–22a is superseded and shall have
no prospective effect. Violations of
Section 22a–174–22a that occur prior to
January 24, 2008 shall continue to be
subject to enforcement, including on or
after January 24, 2008, in accordance
with applicable law.
*
*
*
*
*
(86) * * *
(iii) Section 22a–174–22b, State of
Connecticut Regulation of Department
of Environmental Protection Concerning
The Post-2002 Nitrogen Oxides (NOX)
Budget Program, is fully enforceable up
to and including April 30, 2010. As of
May 1, 2010, Section 22a–174–22b is
superseded and shall have no
prospective effect. Violations of Section
22a–174–22b that occur prior to May 1,
2010 shall be subject to enforcement,
including on or after May 1, 2010, in
accordance with applicable law.
*
*
*
*
*
(97) Revisions to the State
Implementation Plan submitted by the
Connecticut Department of
Environmental Protection on April 26,
2007 and September 12, 2007.
(i) Incorporation by reference.
(A) Regulations of Connecticut State
Agencies (RCSA) section 22a–174–22c
entitled ‘‘The Clean Air Interstate Rule
(CAIR) Nitrogen Oxides (NOX) Ozone
Season Trading Program,’’ effective in
the State of Connecticut on September
4, 2007.
3. In § 52.385, Table 52.385 is
amended by adding new entries to
existing state citations for 22a–174–22a
and 22a–174–22b; and by adding a new
state citation for 22a–174–22c to read as
follows:
I
§ 52.385 EPA-approved Connecticut
regulations.
*
*
*
*
*
TABLE 52.385.—EPA-APPROVED REGULATIONS
Dates
Connecticut state
citation
Title/subject
Date
adopted
by State
*
22a–174–22a .....
*
The Connecticut NOX
Budget Program.
*
*
22a–174–22b .....
*
The Connecticut Post-2002
NOX Budget Program, as
of May 1, 2010.
The Clean Air Interstate
Rule (CAIR) Nitrogen Oxides (NOX) Ozone Season Trading Program.
*
22a–174–22c .....
*
*
9/04/07
9/04/07
9/04/07
Date
approved
by EPA
BILLING CODE 6560–50–P
*
Repealed as of January 24,
2008. Superseded by
CAIR.
*
*
1/24/08 [Insert Federal Register
page number where the
document begins].
1/24/08 [Insert Federal Register
page number where the
document begins].
*
(c)(97)
*
Repealed as of May 1,
2010. Superseded by
CAIR.
ENVIRONMENTAL PROTECTION
AGENCY
[EPA–R02–OAR–2007–0913; FRL–8514–9]
jlentini on PROD1PC65 with RULES
Approval and Promulgation of
Implementation Plans; New York:
Clean Air Interstate Rule
Environmental Protection
Agency (EPA).
AGENCY:
19:26 Jan 23, 2008
Jkt 214001
PO 00000
Final rule.
Frm 00059
Fmt 4700
(c)(97)
*
40 CFR Part 52
VerDate Aug<31>2005
Comments/description
*
(c)(97)
*
ACTION:
Section
52.370
*
*
1/24/08 [Insert Federal Register
page number where the
document begins].
*
[FR Doc. E8–1183 Filed 1–23–08; 8:45 am]
Federal Register citation
Sfmt 4700
*
*
SUMMARY: EPA is taking final action to
approve a revision to the New York
State Implementation Plan (SIP) that
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
New York. As a result of this
rulemaking, EPA will also withdraw,
through a separate rulemaking, the CAIR
Federal Implementation Plans (CAIR
FIPs) concerning sulfur dioxide (SO2),
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Agencies
[Federal Register Volume 73, Number 16 (Thursday, January 24, 2008)]
[Rules and Regulations]
[Pages 4105-4109]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-1183]
[[Page 4105]]
=======================================================================
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R01-OAR-2007-0399; FRL-8517-4]
Approval and Promulgation of Air Quality Implementation Plans;
Connecticut; State Implementation Plan Revision to Implement the Clean
Air Interstate Rule
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: EPA is approving a State Implementation Plan (SIP) revision
submitted by the State of Connecticut on April 26, 2007, with
amendments submitted on September 12, 2007. This SIP 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 Connecticut. Therefore, as a consequence of the
SIP approval, the Administrator of EPA will also, in a separate
document, issue a final rule to withdraw the Federal Implementation
Plan (FIP) concerning NOX ozone-season emissions for
Connecticut.
In the SIP revision that EPA is approving, Connecticut will meet
CAIR requirements by participating in the EPA-administered cap-and-
trade program addressing NOX ozone-season emissions.
Connecticut's SIP revision is based on EPA's model CAIR NOX
ozone season rule and is, in most respects, substantively identical to
that model rule. The Connecticut CAIR program has two major substantive
differences from that model rule (expanded applicability, and a
different methodology for allocating NOX allowances), both
of which are consistent with the flexibility allowed under CAIR for
state participation in the EPA-administered cap-and-trade program. The
SIP revision complies with the statutory and regulatory requirements
for approval of a CAIR NOX ozone-season program. This action
is being taken in accordance with the Clean Air Act.
DATES: Effective Date: This rule is effective on January 24, 2008.
ADDRESSES: EPA has established a docket for this action under Docket
Identification No. EPA-R01-OAR-2007-0399. All documents in the docket
are listed on the www.regulations.gov Web site. Although listed in the
index, some information is not publicly available, i.e., CBI or other
information whose disclosure is restricted by statute. Certain other
material, such as copyrighted material, is not placed on the Internet
and will be publicly available only in hard copy form. Publicly
available docket materials are available either electronically through
www.regulations.gov or in hard copy at the Office of Ecosystem
Protection, U.S. Environmental Protection Agency, EPA New England
Regional Office, One Congress Street, Suite 1100, Boston, MA. EPA
requests that, if at all possible, you contact the contact 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 legal holidays.
Copies of the documents relevant to this action are also available
for public inspection during normal business hours, by appointment at
the Bureau of Air Management, Department of Environmental Protection,
State Office Building, 79 Elm Street, Hartford, CT 06106-1630.
FOR FURTHER INFORMATION CONTACT: If you have questions concerning
today's action, please contact Alison C. Simcox, Air Quality Planning
Unit, U.S. Environmental Protection Agency, EPA New England Regional
Office, One Congress Street, Suite 1100 (CAQ), Boston, MA 02114-2023,
telephone number (617) 918-1684, fax number (617) 918-0684, e-mail
simcox.alison@epa.gov.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. What Action Is EPA Taking?
II. What are the Regulatory History and General Requirements of CAIR
and the CAIR FIPs?
III. EPA Analysis of Connecticut's CAIR SIP Submittal
A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. Applicability Provisions for non-EGUs NOX SIP Call
Sources
D. NOX Allowance Allocations
E. Individual Opt-in Units
IV. Final Action
V. When Is This Action Effective?
VI. Statutory and Executive Order Reviews
I. What Action Is EPA Taking?
EPA is approving a revision to Connecticut's SIP that includes a
new regulation, Regulations of Connecticut State Agencies (RCSA)
section 22a-174-22c, ``The Clean Air Interstate Rule (CAIR) Nitrogen
Oxides (NOX) Ozone Season Trading Program'' (herein called
``Connecticut's CAIR program''), repeal of RCSA section 22a-174-22a
(``The Connecticut NOX Budget Program''), as of September 4,
2007, and repeal of RCSA section 22a-174-22b, ``The Connecticut Post-
2002 NOX Budget Program'' (herein called the ``Connecticut
NOX SIP Call trading program''), as of May 1, 2010. This SIP
revision was first submitted on April 26, 2007, but includes amendments
submitted on September 12, 2007.
The CT DEP had requested that EPA ``parallel process''
Connecticut's proposed CAIR SIP revision. Under this procedure, EPA
prepared its proposed approval of Connecticut's SIP revision before the
state's final adoption and repeal of the regulations referenced above.
EPA has reviewed Connecticut's final adopted regulations and
determined that changes were made to clarify meaning, improve
consistency, or to address redundancy, and that they do not differ
significantly from the ``post-hearing final draft'' version that was
the subject of the notice of proposed rulemaking (NPR) for this SIP
Revision (72 FR 50305). For example, definitions of ``commence
commercial operation'' and ``commence operation'' were clarified; the
word ``through'' was substituted for a hyphen between dates listed to
clearly identify the control periods included in the regulation; and
language was added to clarify that the term ``permitting authority''
has the same meaning as in 40 CFR part 96, subpart AAAA, which refers
to the CAIR NOX Ozone Season Trading Program. None of the
changes made are deemed significant for SIP approval purposes, and it
is, therefore, appropriate to prepare this final rule.
In its SIP revision, Connecticut will meet CAIR requirements by
requiring certain electric generating units (EGUs) to participate in
the EPA-administered State CAIR cap-and-trade program addressing
NOX ozone-season emissions. EPA has determined that the
Connecticut SIP, as revised, meets the applicable requirements of CAIR.
As a consequence of the SIP approval, the Administrator of EPA will
also, in a separate document, issue a final rule to withdraw the FIP
concerning NOX ozone-season emissions for Connecticut. That
action will delete and reserve 40 CFR 52.386. The withdrawal of the
CAIR FIP for Connecticut is a conforming amendment that must be made
once the SIP is approved because EPA's authority to issue the FIP was
premised on a deficiency in the SIP for Connecticut. Once the SIP is
fully approved, EPA no longer has authority for the FIP. Thus, EPA will
not have the option of maintaining the FIP following the full SIP
approval. Accordingly, EPA does not intend to offer an opportunity for
a public hearing or an additional
[[Page 4106]]
opportunity for written public comment on the withdrawal of the FIP.
II. What Is the Regulatory History and General Requirements of CAIR and
the CAIR FIPs?
The Clean Air Interstate Rule (CAIR) was published by EPA on May
12, 2005 (70 FR 25162). In this rule, EPA determined that 28 States and
the District of Columbia contribute significantly to nonattainment and
interfere with maintenance of the national ambient air quality
standards (NAAQS) for fine particles (PM2.5) and/or 8-hour
ozone in downwind States in the eastern part of the country. As a
result, EPA required those upwind States to revise their SIPs to
include control measures that reduce emissions of SO2, which
is a precursor to PM2.5 formation, and/or NOX,
which is a precursor to both ozone and PM2.5 formation. For
jurisdictions that contribute significantly to downwind
PM2.5 nonattainment, CAIR sets annual State-wide emission
reduction requirements (i.e., budgets) for SO2 and annual
State-wide emission reduction requirements for NOX.
Similarly, for jurisdictions that contribute significantly to 8-hour
ozone nonattainment, CAIR sets State-wide emission reduction
requirements for NOX for the ozone season (May 1st to
September 30th). Under CAIR, States may implement these reduction
requirements by participating in the EPA-administered cap-and-trade
programs or by adopting other control measures. 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.
More information on the regulatory history and requirements of CAIR
and the CAIR FIPs is available in the NPR and will not be restated
here.
III. EPA Analysis of Connecticut's CAIR SIP Submittal
A brief summary of EPA's review of Connecticut's CAIR program is
given below. Additional details regarding requirements of Connecticut's
22a-174-22c regulation and EPA's evaluation of this regulation are
available in the NPR for this SIP revision. In addition, Connecticut's
CAIR SIP submittal is available in the docket supporting this action.
A. State Budgets for Allowance Allocations
The CAIR NOX annual and ozone season budgets were
developed from historical heat input data for EGUs. Using these data,
EPA calculated annual and ozone season regional heat input values,
which were multiplied by 0.15 pounds per million British thermal units
(lb/mmBtu), for phase 1 of the CAIR program (2009-2014) and by 0.125
lb/mmBtu, for phase 2 of the CAIR program (2015 and thereafter) to
obtain regional NOX budgets for 2009-2014 and for 2015 and
thereafter, respectively. EPA derived the State NOX annual
and ozone season budgets from the regional budgets using State heat
input data adjusted by fuel factors. Connecticut, however, is only
required to participate in the CAIR NOX ozone-season
program, not the CAIR NOX annual or SO2 trading
programs. Therefore, only CAIR NOX ozone-season budgets
apply to the Connecticut CAIR program.
In today's action, EPA is approving Connecticut's SIP revision,
which includes a new regulation, 22a-174-22c, which comprises
Connecticut's CAIR program. This SIP revision adopts the budget
established for the State in CAIR, i.e., 2,559 tons of NOX
ozone-season emissions for CAIR phases 1 and 2, plus an additional 132
tons of NOX ozone-season emissions for both phases 1 and 2
to account for NOX emissions from ``non-EGUs'' from the
Connecticut NOX SIP Call trading program. The total
NOX ozone-season budget is therefore 2,691 tons of
NOX ozone-season emissions for CAIR phases 1 and 2.
Connecticut's SIP revision sets this budget as the total number of
allowances (with each allowance authorizing one ton of NOX
ozone-season emissions) available for allocation for each year under
the EPA-administered CAIR cap-and-trade program.
B. CAIR Cap-and-Trade Programs
The CAIR NOX annual and ozone-season model trading rules
both largely mirror the structure of the NOX SIP Call model
trading rule in 40 CFR part 96, subparts A through I. While the
provisions of the NOX annual and ozone-season model rules
are similar, there are some differences. For example, the
NOX ozone season model rule reflects the fact that the CAIR
NOX ozone-season trading program replaces the NOX
SIP Call trading program after the 2008 ozone-season and is coordinated
with the NOX SIP Call program. The NOX ozone-
season model rule provides incentives for early emissions reductions by
allowing banked, pre-2009 NOX SIP Call allowances to be used
for compliance in the CAIR NOX ozone-season trading program.
In addition, States have the option of continuing to meet their
NOX SIP Call requirements by participating in the CAIR
NOX ozone season trading program and including all their
NOX SIP Call trading sources in that program.
In the SIP revision, Connecticut will implement its CAIR budgets by
requiring EGUs (as well as ``non-EGUs'' from its NOX SIP
Call trading program, as discussed below) to participate in EPA-
administered cap-and-trade programs for NOX ozone-season
emissions. Connecticut has adopted a full SIP revision that adopts,
with certain allowed changes discussed below, the CAIR model cap-and-
trade rules for NOX ozone-season emissions.
C. Applicability Provisions for Non-EGU NOX SIP Call Sources
In general, the CAIR model trading rules apply to any stationary,
fossil-fuel-fired boiler or stationary, fossil-fuel-fired combustion
turbine serving at any time, since the later of November 15, 1990 or
the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe producing electricity for sale.
States have the option of bringing in, for the CAIR NOX
ozone-season program only, those units in the State's NOX
SIP Call trading program that are not EGUs as defined under CAIR
(herein called ``non-EGUs''). Under this option, the CAIR
NOX ozone-season program must cover all large industrial
boilers and combustion turbines, as well as any small EGUs (i.e., units
serving a generator with a nameplate capacity of 25 MWe or less) that
the State currently requires to be in the NOX SIP Call
trading program.
Connecticut has chosen to expand the applicability provisions of
the CAIR NOX ozone season trading program to include all
units in the State's NOX SIP Call trading program. Units in
the Connecticut NOX SIP Call trading program include EGUs of
15 MW or more and non-EGUs (such as industrial boilers and combustion
turbines) with a maximum design heat input of 250 MMBtu/hr or more.
These units will be included in the Connecticut CAIR program beginning
with the control period in 2009. EPA has determined that Connecticut's
regulation 22a-174-22c includes the allowable CAIR applicability
provisions relating to adding all NOX SIP Call trading-
program units to the Connecticut CAIR NOX ozone season
program.
[[Page 4107]]
D. NOX Allowance Allocations
Deadlines: CAIR provides in 40 CFR 51.123(aa)(2)(iii)(C) that for a
full SIP revision, ``[t]he State's methodology must require that, for
EGUs commencing operation before January 1, 2001, the State will
determine, and notify the Administrator of, each unit's allocation of
CAIR NOX allowances by October 31, 2006 for the ozone
seasons 2009, 2010, and 2011.'' Connecticut's SIP revision requires
that it submit and it in fact did submit these allocations by April 30,
2007 (the deadline for submittal applicable to abbreviated SIP
revisions under 40 CFR 51.123(ee)(2)(ii)(C)). The purpose of the
October 31, 2006 deadline was to allow EPA's Clean Air Markets Division
sufficient time to process the allocations. At this point, as
Connecticut has in fact submitted its allocations well before the date
of this document, and as the Clean Air Markets Division is fully able
to process the allocations, it makes no difference whether EPA received
the 2009-2011 allocations in April of 2007 or October of 2006. EPA will
still be able to record the allocations and provide the allowances to
owners and operators sufficiently in advance of the 2009-2011 control
periods. EPA considers the late submittal harmless error and
consequently approves this SIP revision.
NOX allowance-allocation methodology: Under the NOX
allowance-allocation methodology in the CAIR model trading rules and in
the CAIR FIP, NOX annual and ozone-season allowances are
allocated to units that have operated for five years (i.e., ``existing
units''), based on heat input data from a three-year period that are
adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for
oil, and 0.4 for other fuels. The CAIR model trading rules and the CAIR
FIP also provide a new unit set-aside from which units without five
years of operation are allocated allowances based on the units' prior
year emissions.
States may establish in their SIP submissions a different
NOX allowance-allocation methodology that will be used to
allocate allowances to sources in the State 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.
Connecticut has chosen to replace the provisions of the CAIR
NOX ozone-season model trading rule concerning allowance
allocations with its own methodology. Connecticut's CAIR program is
codified at RCSA section 22a-174-22c. Whereas the model trading rule
uses an allocation methodology that is fuel-adjusted and based on heat
input, Connecticut's allocation methodology is not fuel-adjusted and is
largely based on heat output. Connecticut also provides a percentage of
allowances for a new unit set-aside and for an energy efficiency/
renewable energy set-aside (EERESA) and Qualifying Other Project
(QOPs).
For the 2009 through 2011 control periods, Connecticut will first
allocate NOX allowances to CAIR NOX Ozone Season
units which are cogeneration, industrial or waste-tire-fired units on
an input basis, then will allocate allowances to older EGUs using an
output basis. Remaining allocations will be allocated to newer EGUs on
a pro-rated output basis. For the 2012 control period and beyond,
Connecticut will allocate allowances to both older and newer EGUs on a
pro-rated output basis.
Connecticut has set a new unit set-aside at 7 percent of the
State's CAIR budget during CAIR phase 1 (2009-2014), and at 5 percent
of the State's CAIR budget during CAIR phase 2 (2015 and thereafter).
Therefore, the new unit set-aside includes 200 CAIR NOX
ozone-season allowances during CAIR phase 1, and 134 allowances during
CAIR phase 2. Connecticut has set the EERESA at 10 percent of the
State's CAIR budget for both phases of the CAIR program. Therefore, the
EERESA includes 268 CAIR NOX allowances for the 2009 and
subsequent ozone-season control periods.
More details on Connecticut's methodology for allocating CAIR
allowances, as well as information on Connecticut CAIR permits and
requirements for facilities to report emissions data, can be found in
the NPR and in Connecticut's CAIR SIP submittal available in the docket
supporting this action.
In the NPR, EPA identified two potential ambiguities in the
allocation provisions of Connecticut's proposed CAIR program, and
proposed its interpretations of those provisions. See 72 FR 50309. EPA
received no comments regarding these proposed interpretations.
Consequently, EPA interprets the provisions involved as follows.
First, the proposed regulation uses the term ``NO[X] allowance,''
which is not defined, in three places. See RCSA sections 22a-174-
22c(c)(2), 22a-174-22c(c)(3)(B), 22a-174-22c(g)(4). EPA interprets the
term ``NO[X] allowance'' when used in RCSA section 22a-174-22c as being
identical to the term ``CAIR NO[X] Ozone Season allowance'' as defined
at 40 CFR 96.302.
Second, under RCSA sections 22a-174-22c(e)(7)(A) and (B) and 22a-
174-22c(e)(8)(A), there is no limit to the number of allowances that
can be allocated to CAIR NOX Ozone Season units which are
cogeneration units, industrial units, waste-tire-fired units, or Phase
I units in any control period. For purposes of construing Connecticut's
proposed SIP revision, EPA interprets RCSA sections 22a-174-22c(e)(2)
and 22a-174-22c(e)(3) to prohibit the Connecticut DEP from allocating
allowances in excess of the total state budget, and to control in any
conflict with RCSA sections 22a-174-22c(e)(7)(A) and (B) and 22a-174-
22c(e)(8)(A). Thus, if the operation of RCSA sections 22a-174-
22c(e)(7)(A)-(B) and/or 22a-174-22c(e)(8)(A) were to yield allowances
for CAIR NOX Ozone Season units which are cogeneration
units, industrial units, waste-tire-fired units, or Phase I units in
excess of the state budget, either by themselves or in combination with
allocations to other categories, then RCSA sections 22a-174-22c(e)(2)
and 22a-174-22c(e)(3) would require the Connecticut DEP to recalculate
or reallocate allowances so as not to exceed the state budget.
EPA has relied on these interpretations of Connecticut's proposed
SIP revision for the purposes of approving it as meeting the
requirements of the Act and the CAIR program, and these interpretations
represent EPA's formal interpretations of the SIP provisions at issue
for purposes of federal law.
E. Individual Opt-in Units
The Connecticut CAIR SIP does not include opt-in provisions because
the State has chosen to allocate CAIR allowances using an energy-output
methodology that cannot be used for opt-in sources under the model CAIR
NOX ozone-season trading rule. In addition, Connecticut does
not expect there to be a demand for opt-in provisions as no source
opted into Connecticut's NOX SIP Call trading program.
[[Page 4108]]
IV. Final Action
EPA is approving a revision to Connecticut's SIP that includes a
new regulation, RCSA section 22a-174-22c (Connecticut's CAIR program),
and repeal of RCSA section 22a-174-22a (``The Connecticut
NOX Budget Program''), as of September 4, 2007, and of RCSA
section 22a-174-22b (``The Connecticut Post-2002 NOX Budget
Program''), as of May 1, 2010. Under this SIP revision, Connecticut
will participate in the EPA-administered cap-and-trade program for
NOX ozone-season emissions. The SIP revision meets the
applicable requirements in 40 CFR 51.123(o) and (aa), with regard to
NOX ozone season emissions. EPA has determined that the SIP
as revised meets the requirements of CAIR. As a consequence of the SIP
approval, the Administrator of EPA will also issue, without providing
an opportunity for a public hearing or an additional opportunity for
written public comment, a final rule to withdraw the CAIR FIP
concerning NOX ozone-season emissions for Connecticut. That
action will delete and reserve 40 CFR 52.386 in part 52.
Other specific requirements of the CAIR SIP revision and the
rationale for EPA's approval are explained in the NPR and will not be
restated here. No public comments were received on the NPR.
V. When Is This Action Effective?
EPA finds that there is good cause for this approval to become
effective on the date of publication of this action in the Federal
Register, because a delayed effective date is unnecessary due to the
nature of the approval, which allows the State to make allocations
under its CAIR rules. The expedited effective date for this action is
authorized under both 5 U.S.C. 553(d)(1), which provides that rule
actions may become effective less than 30 days after publication if the
rule ``grants or recognizes an exemption or relieves a restriction''
and 5 U.S.C. 553(d)(3), which allows an effective date less than 30
days after publication ``as otherwise provided by the agency for good
cause found and published with the rule.'' CAIR SIP approvals exempt
states and CAIR sources within states from being subject to allowance
allocation provisions in the CAIR FIPs that otherwise would apply,
allowing States to make their own allowance allocations based on their
SIP-approved State rule. The exemption from these obligations is
sufficient reason to allow an expedited effective date of this rule
under 5 U.S.C. 553(d)(1). In addition, Connecticut's exemption from
these obligations provides good cause to make this rule effective on
the date of publication of this action in the Federal Register,
pursuant to 5 U.S.C. 553(d)(3). The purpose of the 30-day waiting
period prescribed in 5 U.S.C. 553(d) is to give affected parties a
reasonable time to adjust their behavior and prepare before the final
rule takes effect. Where, as here, the final rule grants an exemption
rather than imposing obligations, and where the effect of the final
rule is simply to approve for federal purposes obligations that are
already effective under state law, affected parties, such as the State
of Connecticut and CAIR sources within the State, do not need time to
adjust and prepare before the rule takes effect.
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 imposes
no additional requirements beyond those imposed by state law.
Accordingly, the Administrator certifies that this rule will not have a
significant economic impact on a substantial number of small entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because
this rule approves pre-existing requirements under state law and does
not impose any additional enforceable duty beyond that required by
state law, it does not contain any unfunded mandate or significantly or
uniquely affect small governments, as described in the Unfunded
Mandates Reform Act of 1995 (Pub. L. 104-4).
This rule also does not have tribal implications because it will
not have a substantial direct effect on one or more Indian tribes, on
the relationship between the Federal Government and Indian tribes, or
on the distribution of power and responsibilities between the Federal
Government and Indian tribes, as specified by Executive Order 13175 (65
FR 67249, November 9, 2000). This action also does not have Federalism
implications because it does not have substantial direct effects on the
States, on the relationship between the national government and the
States, or on the distribution of power and responsibilities among the
various levels of government, as specified in Executive Order 13132 (64
FR 43255, August 10, 1999), because it 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 Clean
Air Act. 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 Clean Air Act. In
this context, in the absence of a prior existing requirement for the
State to use voluntary consensus standards (VCS), EPA has no authority
to disapprove a SIP submission for failure to use VCS. It would thus be
inconsistent with applicable law for EPA, when it reviews a SIP
submission, to use VCS in place of a SIP submission that otherwise
satisfies the provisions of the Clean Air Act. Thus, the requirements
of section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not
impose an information collection burden under the provisions of the
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.)
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this rule and other
required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
Under section 307(b)(1) of the Clean Air Act, petitions for
judicial review of this action must be filed in the United States Court
of Appeals for the appropriate circuit by March 24, 2008.
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
[[Page 4109]]
enforce its requirements. (See section 307(b)(2).)
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen oxides, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Sulfur
dioxide.
Dated: January 15, 2008.
Robert W. Varney,
Regional Administrator, EPA New England.
0
Part 52 of chapter I, title 40 of the Code of Federal Regulations is
amended as follows:
PART 52--[AMENDED]
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart H--Connecticut
0
2. Section 52.370 is amended by revising paragraph (c)(80)(i)(B) and
adding paragraphs (c)(86)(iii) and (c)(97) to read as follows:
Sec. 52.370 Identification of plan.
* * * * *
(c) * * *
(80) * * * .
(i) * * *
(B) Regulation section 22a-174-22a, ``The Nitrogen Oxides
(NOX) Budget Program'' adopted on December 15, 1998, and
effective on March 3, 1999. As of January 24, 2008, Section 22a-174-22a
is superseded and shall have no prospective effect. Violations of
Section 22a-174-22a that occur prior to January 24, 2008 shall continue
to be subject to enforcement, including on or after January 24, 2008,
in accordance with applicable law.
* * * * *
(86) * * *
(iii) Section 22a-174-22b, State of Connecticut Regulation of
Department of Environmental Protection Concerning The Post-2002
Nitrogen Oxides (NOX) Budget Program, is fully enforceable
up to and including April 30, 2010. As of May 1, 2010, Section 22a-174-
22b is superseded and shall have no prospective effect. Violations of
Section 22a-174-22b that occur prior to May 1, 2010 shall be subject to
enforcement, including on or after May 1, 2010, in accordance with
applicable law.
* * * * *
(97) Revisions to the State Implementation Plan submitted by the
Connecticut Department of Environmental Protection on April 26, 2007
and September 12, 2007.
(i) Incorporation by reference.
(A) Regulations of Connecticut State Agencies (RCSA) section 22a-
174-22c entitled ``The Clean Air Interstate Rule (CAIR) Nitrogen Oxides
(NOX) Ozone Season Trading Program,'' effective in the State
of Connecticut on September 4, 2007.
0
3. In Sec. 52.385, Table 52.385 is amended by adding new entries to
existing state citations for 22a-174-22a and 22a-174-22b; and by adding
a new state citation for 22a-174-22c to read as follows:
Sec. 52.385 EPA-approved Connecticut regulations.
* * * * *
Table 52.385.--EPA-Approved Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dates
----------------------
Connecticut state citation Title/subject Date Date Federal Register citation Section Comments/description
adopted approved 52.370
by State by EPA
--------------------------------------------------------------------------------------------------------------------------------------------------------
* * * * * * *
22a-174-22a.................. The Connecticut NOX Budget 9/04/07 1/24/08 [Insert Federal Register (c)(97) Repealed as of January 24,
Program. page number where the 2008. Superseded by CAIR.
document begins].
* * * * * * *
22a-174-22b.................. The Connecticut Post-2002 9/04/07 1/24/08 [Insert Federal Register (c)(97) Repealed as of May 1, 2010.
NOX Budget Program, as of page number where the Superseded by CAIR.
May 1, 2010. document begins].
22a-174-22c.................. The Clean Air Interstate 9/04/07 1/24/08 [Insert Federal Register (c)(97)
Rule (CAIR) Nitrogen Oxides page number where the
(NOX) Ozone Season Trading document begins].
Program.
* * * * * * *
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[FR Doc. E8-1183 Filed 1-23-08; 8:45 am]
BILLING CODE 6560-50-P