Great Lakes Steamship Repower Incentive Program, 2497-2500 [2012-820]
Download as PDF
<![CDATA[
srobinson on DSK4SPTVN1PROD with PROPOSALS
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Proposed Rules
www.regulations.gov is an ‘‘anonymous
access’’ system, and EPA will not know
your identity or contact information
unless you provide it in the body of
your comment. If you send email
directly to EPA, your email address will
be automatically captured and included
as part of the public comment. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: Generally, documents in the
docket for this action are available
electronically at www.regulations.gov
and in hard copy at EPA Region IX, 75
Hawthorne Street, San Francisco,
California. While all documents in the
docket are listed at
www.regulations.gov, some information
may be publicly available only at the
hard copy location (e.g., copyrighted
material, large maps), and some may not
be publicly available in either location
(e.g., CBI). To inspect the hard copy
materials, please schedule an
appointment during normal business
hours with the contact listed in the FOR
FURTHER INFORMATION CONTACT section.
FOR FURTHER INFORMATION CONTACT:
Idalia Perez, EPA Region IX, (415) 972–
3248, perez.idalia@epa.gov.
SUPPLEMENTARY INFORMATION: This
proposal addresses the following local
rules: AVAQMD Rule 1134, Stationary
Gas Turbines and ICAPCD Rule 400.1,
Stationary Gas Turbine(s)—Reasonably
Available Control Technology (RACT).
In the Rules and Regulations section of
this Federal Register, we are approving
these local rules in a direct final action
without prior proposal because we
believe these SIP revisions are not
controversial. If we receive adverse
comments, however, we will publish a
timely withdrawal of the direct final
rule and address the comments in
subsequent action based on this
proposed rule. Please note that if we
receive adverse comment on an
amendment, paragraph, or section of
this rule and if that provision may be
severed from the remainder of the rule,
we may adopt as final those provisions
of the rule that are not the subject of an
adverse comment.
We do not plan to open a second
comment period, so anyone interested
in commenting should do so at this
time. If we do not receive adverse
comments, no further activity is
planned. For further information, please
see the direct final action.
VerDate Mar<15>2010
17:14 Jan 17, 2012
Jkt 226001
Dated: December 27, 2011.
Jared Blumenfeld,
Regional Administrator, Region IX.
[FR Doc. 2012–817 Filed 1–17–12; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 1043
[EPA–HQ–OAR–2011–0928; FRL–9619–1]
RIN 2060–XXXX
Great Lakes Steamship Repower
Incentive Program
Environmental Protection
Agency (EPA).
ACTION: Notice of proposed rulemaking.
AGENCY:
EPA is proposing to simplify
an existing provision in our marine
diesel engine program that is intended
to encourage owners of Great Lakes
steamships to repower those steamships
with cleaner marine diesel engines. The
simplified program would automatically
permit the use of residual fuel, through
December 31, 2025, in a steamship if it
has been repowered with a certified Tier
2 or later marine diesel engine, provided
the steamship was operated exclusively
on the Great Lakes and was in service
on October 30, 2009. Steamships are
powered by old, inefficient steam
boilers. Voluntary replacement of these
boilers with modern fuel-efficient
marine diesel engines would result in
reductions of particulate matter and
sulfur oxides, even while the
replacement diesel engines are operated
on higher sulfur residual fuel, and
would provide human health and
welfare benefits for the people who live
in the Great Lakes region. Conversion to
new diesel engines would also result in
considerable carbon dioxide reductions
and fuel savings. In the ‘‘Rules and
Regulations’’ section of this Federal
Register, we are making this
modification to the Great Lakes
steamship incentive program as a direct
final rule without a prior proposed rule.
If we receive no adverse comment, we
will not take further action on this
proposed rule.
DATES: Written comments must be
received by February 17, 2012.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–HQ–
OAR–2011–0928, by mail to:
Environmental Protection Agency, Air
Docket, Mail-code 6102T, 1200
Pennsylvania Avenue NW., Washington,
DC 20460. Comments may also be
SUMMARY:
PO 00000
Frm 00017
Fmt 4702
Sfmt 4702
2497
submitted electronically or through
hand delivery/courier by following the
detailed instructions in the ADDRESSES
section of the direct final rule located in
the rules section of this Federal
Register.
Public Hearing: If anyone contacts us
requesting to speak at a public hearing
on or before February 2, 2012, we will
hold a public hearing. Additional
information about the hearing would be
published in a subsequent Federal
Register notice.
FOR FURTHER INFORMATION CONTACT: Jean
Marie Revelt, Environmental Protection
Agency, Office of Transportation and
Air Quality, Assessment and Standards
Division, 2000 Traverwood Drive, Ann
Arbor, Michigan 48105; telephone
number: (734) 214–4822; fax number:
(734) 214–4816; email address:
revelt.jean-marie@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Why is EPA issuing this proposed
rule?
This document proposes to take
action on our national marine diesel
emission control program. We have
published a direct final rule to simplify
our Great Lakes steamship repower
incentive program in the ‘‘Rules and
Regulations’’ section of this Federal
Register because we view this as a
noncontroversial action and anticipate
no adverse comment. We have
explained our reasons for this action in
the preamble to the direct final rule.
If we receive no adverse comment, we
will not take further action on this
proposed rule. If we receive adverse
comment, we will withdraw the direct
final rule and it will not take effect. We
would address all public comments in
any subsequent final rule based on this
proposed rule.
We do not intend to institute a second
comment period on this action. Any
parties interested in commenting must
do so at this time. For further
information, please see the ADDRESSES
section of this document.
II. Does this action apply to me?
This action will affect companies that
own steamships operating exclusively
on the Great Lakes that were in service
on October 30, 2009. The following
table gives some examples of entities
that may be affected by this rule;
however, since these are only examples,
you should carefully examine the
regulations. You may direct questions
regarding the applicability of this action
as noted in FOR FURTHER INFORMATION
CONTACT.
E:\FR\FM\18JAP1.SGM
18JAP1
2498
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Proposed Rules
NAICS Codes a
Category
Industry
Industry
Industry
Industry
a North
..........................................................................................
..........................................................................................
..........................................................................................
..........................................................................................
Coastal and Great Lakes Freight Transportation.
Coastal and Great Lakes Passenger Transportation.
Shipbuilding and repairing.
Engine repair, remanufacture, and maintenance.
American Industry Classification System (NAICS).
III. Summary of Rule
srobinson on DSK4SPTVN1PROD with PROPOSALS
483113
483114
336611
811310
Examples of potentially regulated entities
EPA’s final rule for Category 3 marine
engines 1 and their fuels (75 FR 22896,
April 30, 2010) exempted steamships
from the sulfur limits that apply to fuel
used in ships operating on the Great
Lakes 2 beginning August 1, 2012 (40
CFR 1043.95(a)). This means steamships
can continue to operate indefinitely on
high sulfur residual fuel. However,
because steamship engines have high
emissions and low fuel efficiency, we
included a provision to encourage
owners of Great Lakes steamships to
voluntarily replace their steam boilers
with cleaner, more fuel-efficient marine
diesel engines (40 CFR
1043.95(b)(4)(iv)). The current voluntary
repower incentive is in the form of relief
through EPA’s economic hardship
program, through which an owner may
apply for a relaxation of the Great Lakes
fuel sulfur limits for fuel used by the
repowered diesel ship for a defined
period of time. The use of lower price,
higher sulfur residual fuel can help
offset vessel repower costs.
EPA believes that the goal of
repowering the fleet of Great Lakes
steamships could be achieved more
effectively by adding a new incentive
program to provide an automatic, timelimited fuel waiver for repowered
steamships. Instead of applying for
relief through the economic hardship
program, Great Lakes steamship owners
who voluntarily repower their
steamships with diesel engines would
automatically qualify for a waiver that
would allow the use of residual fuel in
the replacement diesel engines that
exceeds the global and ECA sulfur limits
that otherwise apply to the fuel used in
marine diesel engines operated on the
U. S. portions of the Great Lakes. This
automatic Great Lakes steamship
repower fuel waiver would be valid
through December 31, 2025; after that
date, repowered steamships would be
required to comply with the Great Lakes
ECA fuel sulfur limits for diesel
1 Category 3 marine engines are diesel engines
with per cylinder displacement at or above 30 liters.
2 For the purpose of this program, ‘‘Great Lakes’’
means all the streams, rivers, lakes, and other
bodies of water that are within the drainage basin
of the St. Lawrence River, west of Anticosti Island.
(40 CFR 1043.20).
VerDate Mar<15>2010
17:14 Jan 17, 2012
Jkt 226001
engines.3 To qualify for this automatic
fuel sulfur waiver, the steamship must
be exempt from existing requirements
pursuant to 40 CFR 1043.95(a) in that it
must operate exclusively on the Great
Lakes and must have been in service on
October 30, 2009, where ‘‘in service’’
means operating as a steamship, but is
not limited to actually performing that
service on that day. In addition, the
replacement engine must be a Tier 2 or
cleaner marine diesel engine as
specified in 40 CFR 1042.104.
Voluntary replacement of steam
engines with cleaner, more efficient Tier
2 or better marine diesel engines
through this modification to our
steamship repower incentive program
would provide important air quality and
energy benefits immediately, due to the
improved fuel efficiency of the diesel
engines, and even larger benefits in the
long term, when the repowered ships
will use fuel that complies with the
1,000 ppm sulfur limit on the Great
Lakes.
For additional discussion of the
proposed rule changes, see the direct
final rule EPA has published in the
‘‘Rules and Regulations’’ section of
today’s Federal Register. This proposal
incorporates by reference all the
reasoning, explanation, and regulatory
text from the direct final rule.
V. Statutory and Executive Order
Reviews
A. Executive Order 12866: Regulatory
Planning and Review
This proposed rule is not a
‘‘significant regulatory action’’ under
the terms of Executive Order 12866 (58
FR 51735, October 4, 1993) and is
therefore not subject to review under
Executive Orders 12866 and 13563 (76
FR 3821, January 21, 2011). This
proposed rule would merely add an
automatic waiver provision to
encourage Great Lakes steamship
owners to repower their vessels with
cleaner marine diesel engines. There are
no costs associated with this proposed
3 Compliance can be through switching to ECAcompliant fuel or through the installation and use
of an exhaust gas cleaning system (scrubber) or
other technology or procedure that achieves
equivalent sulfur emissions. See Section V.C of the
preamble for our Category 3 FRM for a discussion
of compliance strategies.
PO 00000
Frm 00018
Fmt 4702
Sfmt 4702
rule because steamship owners are not
required to repower their ships.
B. Paperwork Reduction Act
The information collection
requirements in this rule will be
submitted for approval to the Office of
Management and Budget (OMB) under
the Paperwork Reduction Act, 44 U.S.C.
3501 et seq. The information collection
requirements are not enforceable until
OMB approves them.
The program contained in this rule is
a voluntary incentive program to
encourage owners of Great Lakes
steamship to repower their ships with
diesel engines. A steamship owner
taking advantage of the automatic fuel
waiver is required to notify EPA’s
designated certification officer of the
intention to use this provision. The
notification must include a description
of the project, the expected timeline,
and other relevant information. The
owner is also required to notify EPA’s
designated certification officer at
completion of the project. The purpose
of the reporting is to ensure that a
repower has taken place, with a
qualified EPA-certified engine. Because
this program is voluntary, a steamship
owner would provide this information
only if the provision is exercised. When
the project is completed, EPA will
provide the owner with a statement that
the repowered ship is covered by the
steamship repower incentive program
fuel sulfur waiver, which is to be kept
onboard for compliance purposes.
There are potentially six companies
affected, which own the twelve
remaining diesel steamships that
operate on the Great Lakes. It is not
known how many of these companies
will actually take advantage of the
waiver, or when they would repower.
However, it is likely that the repowers
would occur prior to 2015, to maximize
the fuel savings afforded by the fuel
sulfur waiver before it expires on
December 31, 2025.
The total estimated burden associated
with the automatic steamship repower
incentive program is 14.0 hours
annually. This is based on two
steamship owners repowering two
steamships in each of three years and an
estimated 3.5 annual labor hours for
each manufacturer to prepare and
submit the required information for
E:\FR\FM\18JAP1.SGM
18JAP1
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Proposed Rules
srobinson on DSK4SPTVN1PROD with PROPOSALS
each ship. Burden is defined at 5 CFR
1320.3(b).
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid OMB
control number. The OMB control
numbers for EPA’s regulations in 40
CFR are listed in 40 CFR part 9. When
this ICR is approved by OMB, the
Agency will publish a technical
amendment to 40 CFR part 9 in the
Federal Register to display the OMB
control number for the approved
information collection requirements
contained in this final rule.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
generally requires an agency to prepare
a regulatory flexibility analysis of any
rule subject to notice and comment
rulemaking requirements under the
Administrative Procedure Act or any
other statute unless the agency certifies
that the rule will not have a significant
economic impact on a substantial
number of small entities. Small entities
include small businesses, small
organizations, and small governmental
jurisdictions.
For purposes of assessing the impacts
of today’s proposed rule on small
entities, small entity is defined as: (1) A
small business primarily engaged in
shipbuilding and repairing as defined
by NAICS code 336611 with 1,000 or
fewer employees (based on Small
Business Administration size
standards); (2) a small business that is
primarily engaged in freight or
passenger transportation on the Great
Lakes as defined by NAICS codes
483113 and 483114 with 500 or fewer
employees (based on Small Business
Administration size standards); (3) a
small business primarily engaged in
commercial and industrial machinery
and equipment repair and maintenance
with annual receipts less than $7
million (based on Small Business
Administration size standards); (4) a
small governmental jurisdiction that is a
government of a city, county, town,
school district or special district with a
population of less than 50,000; and (5)
a small organization that is any not-forprofit enterprise which is independently
owned and operated and is not
dominant in its field.
After considering the economic
impacts of today’s proposed rule on
small entities, I certify that proposed
rule would not have a significant
economic impact on a substantial
number of small entities.
In determining whether a rule has a
significant economic impact on a
substantial number of small entities, the
VerDate Mar<15>2010
17:14 Jan 17, 2012
Jkt 226001
impact of concern is any significant
adverse economic impact on small
entities, since the primary purpose of
the regulatory flexibility analyses is to
identify and address regulatory
alternatives ‘‘which minimize any
significant economic impact of the rule
on small entities.’’ 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule
will not have a significant economic
impact on a substantial number of small
entities if the rule relieves regulatory
burden, or otherwise has a positive
economic effect on all of the small
entities subject to the rule.
This proposed rule would merely add
an automatic waiver provision to
encourage Great Lakes steamship
owners to repower their vessels with
cleaner marine diesel engines. There are
no costs and therefore no regulatory
burden associated with this rule because
steamship owners are not required to
repower their ships and can continue
using their vessels indefinitely. This
Great Lakes steamship repower
incentive program would assist those
steamship owners who choose to
voluntarily repower their ships,
however, by allowing them to use
lower-price residual fuel in the
repowered diesel ship for a specified
period of time, which may help them
cover the costs of the repower project.
We have therefore concluded that
today’s final rule will not increase
regulatory burden for affected small
entities.
D. Unfunded Mandates Reform Act
This action contains no Federal
mandates under the provisions of Title
II of the Unfunded Mandates Reform
Act of 1995 (UMRA), 2 U.S.C. 1531–
1538 for State, local, or tribal
governments or the private sector. The
action imposes no enforceable duty on
any State, local or tribal governments or
the private sector. Therefore, this action
is not subject to the requirements of
sections 202 or 205 of the UMRA.
This action is also not subject to the
requirements of section 203 of UMRA
because it contains no regulatory
requirements that might significantly or
uniquely affect small governments. This
proposed rule would merely add an
automatic waiver provision to
encourage Great Lakes steamship
owners to repower their vessels with
cleaner marine diesel engines. None of
the thirteen U.S. steamships operating
on the Great Lakes as of October 30,
2009 are owned or operated by a State,
local, or tribal government.
E. Executive Order 13132: Federalism
This action does not have federalism
implications. It would not have
PO 00000
Frm 00019
Fmt 4702
Sfmt 4702
2499
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. This proposed
final rule would merely add an
automatic waiver provision to
encourage Great Lakes steamship
owners to repower their vessels with
cleaner marine diesel engines. None of
the thirteen U.S. steamships operating
on the Great Lakes as of October 30,
2009 are owned or operated by a State.
Thus, Executive Order 13132 does not
apply to this action.
F. Executive Order 13175: Consultation
and Coordination With Indian Tribal
Governments
This action does not have tribal
implications, as specified in Executive
Order 13175 (65 FR 67249, November 9,
2000). This proposed rule would merely
add an automatic waiver provision to
encourage Great Lakes steamship
owners to repower their vessels with
cleaner marine diesel engines. None of
the thirteen U.S. steamships operating
on the Great Lakes as of October 30,
2009 are owned or operated by an
Indian tribal government. Thus,
Executive Order 13175 does not apply
to this action.
G. Executive Order 13045: Protection of
Children From Environmental Health
and Safety Risks
This action is not subject to Executive
Order 13045 (62 FR 19885, April 23,
1997) because it is not economically
significant as defined in Executive
Order 12866, and because the Agency
does not believe the environmental
health or safety risks addressed by this
action present a disproportionate risk to
children. This proposed rule would
merely add an automatic waiver
provision to encourage Great Lakes
steamship owners to repower their
vessels with cleaner marine diesel
engines. To the extent Great Lakes
steamship owners take advantage of this
incentive program, their action would
provide immediate air quality and
energy benefits, due to the improved
fuel efficiency of the diesel engines, and
even larger benefits in the long term,
when the repowered ship would use
fuel that complies with the 1,000 ppm
sulfur limit on the Great Lakes. These
emission reductions would improve air
quality for all people who live in the
Great Lakes region, including children
and other sensitive populations.
E:\FR\FM\18JAP1.SGM
18JAP1
2500
Federal Register / Vol. 77, No. 11 / Wednesday, January 18, 2012 / Proposed Rules
H. Executive Order 13211: Actions That
Significantly Affect Energy Supply,
Distribution, or Use
This action is not subject to Executive
Order 13211 (66 FR 28355, May 22,
2001), because it is not a significant
regulatory action under Executive Order
12866.
I. National Technology Transfer
Advancement Act
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (‘‘NTTAA’’), Public Law
104–113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus
standards in its regulatory activities
unless to do so would be inconsistent
with applicable law or otherwise
impractical. Voluntary consensus
standards are technical standards (e.g.,
materials specifications, test methods,
sampling procedures, and business
practices) that are developed or adopted
by voluntary consensus standards
bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations
when the Agency decides not to use
available and applicable voluntary
consensus standards.
This action does not involved
technical standards. Therefore, EPA did
not consider the use of any voluntary
consensus standards.
srobinson on DSK4SPTVN1PROD with PROPOSALS
J. Executive Order 12898: Federal
Actions To Address Environmental
Justice in Minority Populations and
Low-Income Populations
Executive Order 12898 (59 FR 7629,
Feb. 16, 1994) establishes federal
executive policy on environmental
justice. Its main provision directs
federal agencies, to the greatest extent
practicable and permitted by law, to
make environmental justice part of their
mission by identifying and addressing,
as appropriate, disproportionately high
and adverse human health or
environmental effects of their programs,
policies, and activities on minority
populations and low-income
populations in the United States.
EPA has determined that this
proposed rule would not have
disproportionately high and adverse
human health or environmental effects
on minority or low-income populations
because it increases the level of
environmental protection for all affected
populations without having any
disproportionately high and adverse
human health or environmental effects
on any population, including any
minority or low-income population.
This proposed rule would merely add
an automatic waiver provision to
encourage Great Lakes steamship
VerDate Mar<15>2010
17:14 Jan 17, 2012
Jkt 226001
owners to repower their vessels with
cleaner marine diesel engines. To the
extent Great Lakes steamship owners
take advantage of this incentive
program, their action would provide
immediate air quality and energy
benefits, due to the improved fuel
efficiency of the diesel engines, and
even larger benefits in the long term,
when the repowered ship would use
fuel that complies with the 1,000 ppm
sulfur limit on the Great Lakes. These
emission reductions would improve air
quality for all people who live in the
Great Lakes region, including minority
and low-income populations.
K. Statutory Authority
The statutory authority for this action
comes from section 1903 of the Act to
Prevent Pollution from Ships (33 U.S.C.
1901 et seq.). The Act to Prevent
Pollution from Ships implements Annex
VI to the International Convention for
the Prevention of Pollution from Ships
(MARPOL) and makes those
requirements enforceable domestically.
Section 1903 gives the Administrator
the authority to prescribe any necessary
or desired regulations to carry out the
provisions of Regulations 12 through 19
of MARPOL Annex VI.
List of Subjects in 40 CFR Part 1043
Environmental protection,
Administrative practice and procedure,
Air pollution control, Confidential
business information, Economic
hardship waiver, Great Lakes, North
American Emission Control Area,
Reporting and recordkeeping
requirements, Steamships.
Dated: January 11, 2012.
Lisa P. Jackson,
Administrator.
[FR Doc. 2012–820 Filed 1–17–12; 8:45 am]
BILLING CODE 6560–50–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Centers for Medicare & Medicaid
Services
42 CFR Part 447
[CMS–2315–P]
RIN 0938–AQ37
Medicaid Program; Disproportionate
Share Hospital Payments—Uninsured
Definition
Centers for Medicare &
Medicaid Services (CMS), HHS.
ACTION: Proposed rule.
AGENCY:
PO 00000
Frm 00020
Fmt 4702
Sfmt 4702
This proposed rule addresses
the hospital-specific limitation on
Medicaid disproportionate share
hospital (DSH) payments under the
Social Security Act. Under this
limitation, DSH payments to a hospital
cannot exceed the uncompensated costs
of furnishing hospital services by the
hospital to individuals who are
Medicaid-eligible or ‘‘have no health
insurance (or other source of third party
coverage) for the services furnished
during the year.’’ This rule would
provide that the quoted phrase would
refer in context to a lack of coverage on
a service-specific basis, so that the
calculation of uncompensated care for
purposes of the hospital-specific DSH
limit would include the cost of each
service furnished to an individual who
had no health insurance or other source
of third party coverage for that service.
DATES: To be assured consideration,
comments must be received at one of
the addresses provided below, no later
than 5 p.m. on February 17, 2012.
ADDRESSES: In commenting, please refer
to file code CMS–2315–P. Because of
staff and resource limitations, we cannot
accept comments by facsimile (Fax)
transmission.
You may submit comments in one of
four ways (please choose only one of the
ways listed):
1. Electronically. You may submit
electronic comments on this regulation
to https://www.regulations.gov. Follow
the ‘‘Submit a comment’’ instructions.
2. By regular mail. You may mail
written comments to the following
address ONLY: Centers for Medicare &
Medicaid Services, Department of
Health and Human Services, Attention:
CMS–2315–P, P.O. Box 8016, Baltimore,
MD 21244–8016.
Please allow sufficient time for mailed
comments to be received before the
close of the comment period.
3. By express or overnight mail. You
may send written comments to the
following address ONLY: Centers for
Medicare & Medicaid Services,
Department of Health and Human
Services, Attention: CMS–2315–P, Mail
Stop C4–26–05, 7500 Security
Boulevard, Baltimore, MD 21244–1850.
4. By hand or courier. Alternatively,
you may deliver (by hand or courier)
your written comments ONLY to the
following addresses prior to the close of
the comment period:
a. For delivery in Washington, DC—
Centers for Medicare & Medicaid
Services, Department of Health and
Human Services, Room 445–G, Hubert
H. Humphrey Building, 200
Independence Avenue SW.,
Washington, DC 20201.
SUMMARY:
E:\FR\FM\18JAP1.SGM
18JAP1
]]>Agencies
[Federal Register Volume 77, Number 11 (Wednesday, January 18, 2012)]
[Proposed Rules]
[Pages 2497-2500]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-820]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 1043
[EPA-HQ-OAR-2011-0928; FRL-9619-1]
RIN 2060-XXXX
Great Lakes Steamship Repower Incentive Program
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: EPA is proposing to simplify an existing provision in our
marine diesel engine program that is intended to encourage owners of
Great Lakes steamships to repower those steamships with cleaner marine
diesel engines. The simplified program would automatically permit the
use of residual fuel, through December 31, 2025, in a steamship if it
has been repowered with a certified Tier 2 or later marine diesel
engine, provided the steamship was operated exclusively on the Great
Lakes and was in service on October 30, 2009. Steamships are powered by
old, inefficient steam boilers. Voluntary replacement of these boilers
with modern fuel-efficient marine diesel engines would result in
reductions of particulate matter and sulfur oxides, even while the
replacement diesel engines are operated on higher sulfur residual fuel,
and would provide human health and welfare benefits for the people who
live in the Great Lakes region. Conversion to new diesel engines would
also result in considerable carbon dioxide reductions and fuel savings.
In the ``Rules and Regulations'' section of this Federal Register, we
are making this modification to the Great Lakes steamship incentive
program as a direct final rule without a prior proposed rule. If we
receive no adverse comment, we will not take further action on this
proposed rule.
DATES: Written comments must be received by February 17, 2012.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2011-0928, by mail to: Environmental Protection Agency, Air Docket,
Mail-code 6102T, 1200 Pennsylvania Avenue NW., Washington, DC 20460.
Comments may also be submitted electronically or through hand delivery/
courier by following the detailed instructions in the ADDRESSES section
of the direct final rule located in the rules section of this Federal
Register.
Public Hearing: If anyone contacts us requesting to speak at a
public hearing on or before February 2, 2012, we will hold a public
hearing. Additional information about the hearing would be published in
a subsequent Federal Register notice.
FOR FURTHER INFORMATION CONTACT: Jean Marie Revelt, Environmental
Protection Agency, Office of Transportation and Air Quality, Assessment
and Standards Division, 2000 Traverwood Drive, Ann Arbor, Michigan
48105; telephone number: (734) 214-4822; fax number: (734) 214-4816;
email address: revelt.jean-marie@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Why is EPA issuing this proposed rule?
This document proposes to take action on our national marine diesel
emission control program. We have published a direct final rule to
simplify our Great Lakes steamship repower incentive program in the
``Rules and Regulations'' section of this Federal Register because we
view this as a noncontroversial action and anticipate no adverse
comment. We have explained our reasons for this action in the preamble
to the direct final rule.
If we receive no adverse comment, we will not take further action
on this proposed rule. If we receive adverse comment, we will withdraw
the direct final rule and it will not take effect. We would address all
public comments in any subsequent final rule based on this proposed
rule.
We do not intend to institute a second comment period on this
action. Any parties interested in commenting must do so at this time.
For further information, please see the ADDRESSES section of this
document.
II. Does this action apply to me?
This action will affect companies that own steamships operating
exclusively on the Great Lakes that were in service on October 30,
2009. The following table gives some examples of entities that may be
affected by this rule; however, since these are only examples, you
should carefully examine the regulations. You may direct questions
regarding the applicability of this action as noted in FOR FURTHER
INFORMATION CONTACT.
[[Page 2498]]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Category NAICS Codes \a\ Examples of potentially regulated entities
--------------------------------------------------------------------------------------------------------------------------------------------------------
Industry...................................... 483113 Coastal and Great Lakes Freight Transportation.
Industry...................................... 483114 Coastal and Great Lakes Passenger Transportation.
Industry...................................... 336611 Shipbuilding and repairing.
Industry...................................... 811310 Engine repair, remanufacture, and maintenance.
--------------------------------------------------------------------------------------------------------------------------------------------------------
\a\ North American Industry Classification System (NAICS).
III. Summary of Rule
EPA's final rule for Category 3 marine engines \1\ and their fuels
(75 FR 22896, April 30, 2010) exempted steamships from the sulfur
limits that apply to fuel used in ships operating on the Great Lakes
\2\ beginning August 1, 2012 (40 CFR 1043.95(a)). This means steamships
can continue to operate indefinitely on high sulfur residual fuel.
However, because steamship engines have high emissions and low fuel
efficiency, we included a provision to encourage owners of Great Lakes
steamships to voluntarily replace their steam boilers with cleaner,
more fuel-efficient marine diesel engines (40 CFR 1043.95(b)(4)(iv)).
The current voluntary repower incentive is in the form of relief
through EPA's economic hardship program, through which an owner may
apply for a relaxation of the Great Lakes fuel sulfur limits for fuel
used by the repowered diesel ship for a defined period of time. The use
of lower price, higher sulfur residual fuel can help offset vessel
repower costs.
---------------------------------------------------------------------------
\1\ Category 3 marine engines are diesel engines with per
cylinder displacement at or above 30 liters.
\2\ For the purpose of this program, ``Great Lakes'' means all
the streams, rivers, lakes, and other bodies of water that are
within the drainage basin of the St. Lawrence River, west of
Anticosti Island. (40 CFR 1043.20).
---------------------------------------------------------------------------
EPA believes that the goal of repowering the fleet of Great Lakes
steamships could be achieved more effectively by adding a new incentive
program to provide an automatic, time-limited fuel waiver for repowered
steamships. Instead of applying for relief through the economic
hardship program, Great Lakes steamship owners who voluntarily repower
their steamships with diesel engines would automatically qualify for a
waiver that would allow the use of residual fuel in the replacement
diesel engines that exceeds the global and ECA sulfur limits that
otherwise apply to the fuel used in marine diesel engines operated on
the U. S. portions of the Great Lakes. This automatic Great Lakes
steamship repower fuel waiver would be valid through December 31, 2025;
after that date, repowered steamships would be required to comply with
the Great Lakes ECA fuel sulfur limits for diesel engines.\3\ To
qualify for this automatic fuel sulfur waiver, the steamship must be
exempt from existing requirements pursuant to 40 CFR 1043.95(a) in that
it must operate exclusively on the Great Lakes and must have been in
service on October 30, 2009, where ``in service'' means operating as a
steamship, but is not limited to actually performing that service on
that day. In addition, the replacement engine must be a Tier 2 or
cleaner marine diesel engine as specified in 40 CFR 1042.104.
---------------------------------------------------------------------------
\3\ Compliance can be through switching to ECA-compliant fuel or
through the installation and use of an exhaust gas cleaning system
(scrubber) or other technology or procedure that achieves equivalent
sulfur emissions. See Section V.C of the preamble for our Category 3
FRM for a discussion of compliance strategies.
---------------------------------------------------------------------------
Voluntary replacement of steam engines with cleaner, more efficient
Tier 2 or better marine diesel engines through this modification to our
steamship repower incentive program would provide important air quality
and energy benefits immediately, due to the improved fuel efficiency of
the diesel engines, and even larger benefits in the long term, when the
repowered ships will use fuel that complies with the 1,000 ppm sulfur
limit on the Great Lakes.
For additional discussion of the proposed rule changes, see the
direct final rule EPA has published in the ``Rules and Regulations''
section of today's Federal Register. This proposal incorporates by
reference all the reasoning, explanation, and regulatory text from the
direct final rule.
V. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
This proposed rule is not a ``significant regulatory action'' under
the terms of Executive Order 12866 (58 FR 51735, October 4, 1993) and
is therefore not subject to review under Executive Orders 12866 and
13563 (76 FR 3821, January 21, 2011). This proposed rule would merely
add an automatic waiver provision to encourage Great Lakes steamship
owners to repower their vessels with cleaner marine diesel engines.
There are no costs associated with this proposed rule because steamship
owners are not required to repower their ships.
B. Paperwork Reduction Act
The information collection requirements in this rule will be
submitted for approval to the Office of Management and Budget (OMB)
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. The
information collection requirements are not enforceable until OMB
approves them.
The program contained in this rule is a voluntary incentive program
to encourage owners of Great Lakes steamship to repower their ships
with diesel engines. A steamship owner taking advantage of the
automatic fuel waiver is required to notify EPA's designated
certification officer of the intention to use this provision. The
notification must include a description of the project, the expected
timeline, and other relevant information. The owner is also required to
notify EPA's designated certification officer at completion of the
project. The purpose of the reporting is to ensure that a repower has
taken place, with a qualified EPA-certified engine. Because this
program is voluntary, a steamship owner would provide this information
only if the provision is exercised. When the project is completed, EPA
will provide the owner with a statement that the repowered ship is
covered by the steamship repower incentive program fuel sulfur waiver,
which is to be kept onboard for compliance purposes.
There are potentially six companies affected, which own the twelve
remaining diesel steamships that operate on the Great Lakes. It is not
known how many of these companies will actually take advantage of the
waiver, or when they would repower. However, it is likely that the
repowers would occur prior to 2015, to maximize the fuel savings
afforded by the fuel sulfur waiver before it expires on December 31,
2025.
The total estimated burden associated with the automatic steamship
repower incentive program is 14.0 hours annually. This is based on two
steamship owners repowering two steamships in each of three years and
an estimated 3.5 annual labor hours for each manufacturer to prepare
and submit the required information for
[[Page 2499]]
each ship. Burden is defined at 5 CFR 1320.3(b).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR are listed in 40 CFR part 9. When this ICR is
approved by OMB, the Agency will publish a technical amendment to 40
CFR part 9 in the Federal Register to display the OMB control number
for the approved information collection requirements contained in this
final rule.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
For purposes of assessing the impacts of today's proposed rule on
small entities, small entity is defined as: (1) A small business
primarily engaged in shipbuilding and repairing as defined by NAICS
code 336611 with 1,000 or fewer employees (based on Small Business
Administration size standards); (2) a small business that is primarily
engaged in freight or passenger transportation on the Great Lakes as
defined by NAICS codes 483113 and 483114 with 500 or fewer employees
(based on Small Business Administration size standards); (3) a small
business primarily engaged in commercial and industrial machinery and
equipment repair and maintenance with annual receipts less than $7
million (based on Small Business Administration size standards); (4) a
small governmental jurisdiction that is a government of a city, county,
town, school district or special district with a population of less
than 50,000; and (5) a small organization that is any not-for-profit
enterprise which is independently owned and operated and is not
dominant in its field.
After considering the economic impacts of today's proposed rule on
small entities, I certify that proposed rule would not have a
significant economic impact on a substantial number of small entities.
In determining whether a rule has a significant economic impact on
a substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, since the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the rule on small entities.'' 5 U.S.C. 603 and 604.
Thus, an agency may certify that a rule will not have a significant
economic impact on a substantial number of small entities if the rule
relieves regulatory burden, or otherwise has a positive economic effect
on all of the small entities subject to the rule.
This proposed rule would merely add an automatic waiver provision
to encourage Great Lakes steamship owners to repower their vessels with
cleaner marine diesel engines. There are no costs and therefore no
regulatory burden associated with this rule because steamship owners
are not required to repower their ships and can continue using their
vessels indefinitely. This Great Lakes steamship repower incentive
program would assist those steamship owners who choose to voluntarily
repower their ships, however, by allowing them to use lower-price
residual fuel in the repowered diesel ship for a specified period of
time, which may help them cover the costs of the repower project. We
have therefore concluded that today's final rule will not increase
regulatory burden for affected small entities.
D. Unfunded Mandates Reform Act
This action contains no Federal mandates under the provisions of
Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), 2 U.S.C.
1531-1538 for State, local, or tribal governments or the private
sector. The action imposes no enforceable duty on any State, local or
tribal governments or the private sector. Therefore, this action is not
subject to the requirements of sections 202 or 205 of the UMRA.
This action is also not subject to the requirements of section 203
of UMRA because it contains no regulatory requirements that might
significantly or uniquely affect small governments. This proposed rule
would merely add an automatic waiver provision to encourage Great Lakes
steamship owners to repower their vessels with cleaner marine diesel
engines. None of the thirteen U.S. steamships operating on the Great
Lakes as of October 30, 2009 are owned or operated by a State, local,
or tribal government.
E. Executive Order 13132: Federalism
This action does not have federalism implications. It would not
have substantial direct effects on the States, on the relationship
between the national government and the States, or on the distribution
of power and responsibilities among the various levels of government,
as specified in Executive Order 13132. This proposed final rule would
merely add an automatic waiver provision to encourage Great Lakes
steamship owners to repower their vessels with cleaner marine diesel
engines. None of the thirteen U.S. steamships operating on the Great
Lakes as of October 30, 2009 are owned or operated by a State. Thus,
Executive Order 13132 does not apply to this action.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
This action does not have tribal implications, as specified in
Executive Order 13175 (65 FR 67249, November 9, 2000). This proposed
rule would merely add an automatic waiver provision to encourage Great
Lakes steamship owners to repower their vessels with cleaner marine
diesel engines. None of the thirteen U.S. steamships operating on the
Great Lakes as of October 30, 2009 are owned or operated by an Indian
tribal government. Thus, Executive Order 13175 does not apply to this
action.
G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks
This action is not subject to Executive Order 13045 (62 FR 19885,
April 23, 1997) because it is not economically significant as defined
in Executive Order 12866, and because the Agency does not believe the
environmental health or safety risks addressed by this action present a
disproportionate risk to children. This proposed rule would merely add
an automatic waiver provision to encourage Great Lakes steamship owners
to repower their vessels with cleaner marine diesel engines. To the
extent Great Lakes steamship owners take advantage of this incentive
program, their action would provide immediate air quality and energy
benefits, due to the improved fuel efficiency of the diesel engines,
and even larger benefits in the long term, when the repowered ship
would use fuel that complies with the 1,000 ppm sulfur limit on the
Great Lakes. These emission reductions would improve air quality for
all people who live in the Great Lakes region, including children and
other sensitive populations.
[[Page 2500]]
H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use
This action is not subject to Executive Order 13211 (66 FR 28355,
May 22, 2001), because it is not a significant regulatory action under
Executive Order 12866.
I. National Technology Transfer Advancement Act
Section 12(d) of the National Technology Transfer and Advancement
Act of 1995 (``NTTAA''), Public Law 104-113, 12(d) (15 U.S.C. 272 note)
directs EPA to use voluntary consensus standards in its regulatory
activities unless to do so would be inconsistent with applicable law or
otherwise impractical. Voluntary consensus standards are technical
standards (e.g., materials specifications, test methods, sampling
procedures, and business practices) that are developed or adopted by
voluntary consensus standards bodies. NTTAA directs EPA to provide
Congress, through OMB, explanations when the Agency decides not to use
available and applicable voluntary consensus standards.
This action does not involved technical standards. Therefore, EPA
did not consider the use of any voluntary consensus standards.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order 12898 (59 FR 7629, Feb. 16, 1994) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States.
EPA has determined that this proposed rule would not have
disproportionately high and adverse human health or environmental
effects on minority or low-income populations because it increases the
level of environmental protection for all affected populations without
having any disproportionately high and adverse human health or
environmental effects on any population, including any minority or low-
income population. This proposed rule would merely add an automatic
waiver provision to encourage Great Lakes steamship owners to repower
their vessels with cleaner marine diesel engines. To the extent Great
Lakes steamship owners take advantage of this incentive program, their
action would provide immediate air quality and energy benefits, due to
the improved fuel efficiency of the diesel engines, and even larger
benefits in the long term, when the repowered ship would use fuel that
complies with the 1,000 ppm sulfur limit on the Great Lakes. These
emission reductions would improve air quality for all people who live
in the Great Lakes region, including minority and low-income
populations.
K. Statutory Authority
The statutory authority for this action comes from section 1903 of
the Act to Prevent Pollution from Ships (33 U.S.C. 1901 et seq.). The
Act to Prevent Pollution from Ships implements Annex VI to the
International Convention for the Prevention of Pollution from Ships
(MARPOL) and makes those requirements enforceable domestically. Section
1903 gives the Administrator the authority to prescribe any necessary
or desired regulations to carry out the provisions of Regulations 12
through 19 of MARPOL Annex VI.
List of Subjects in 40 CFR Part 1043
Environmental protection, Administrative practice and procedure,
Air pollution control, Confidential business information, Economic
hardship waiver, Great Lakes, North American Emission Control Area,
Reporting and recordkeeping requirements, Steamships.
Dated: January 11, 2012.
Lisa P. Jackson,
Administrator.
[FR Doc. 2012-820 Filed 1-17-12; 8:45 am]
BILLING CODE 6560-50-P
