Approval and Promulgation of Air Quality Implementation Plans; Connecticut; NOX, 71140-71145 [2012-28908]
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Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Proposed Rules
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R03–OAR–2012–0797; FRL–9755–1]
Approval and Promulgation of Air
Quality Implementation Plans;
Pennsylvania; Allegheny County
Incorporation by Reference of
Pennsylvania’s Consumer Products
Regulations
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
EPA proposes to approve the
State Implementation Plan (SIP)
revision submitted by the
Commonwealth of Pennsylvania. The
SIP revision adds section 2105.88—
Consumer Products to Allegheny
County Health Department (ACHD)
Rules and Regulations, Article XXI, Air
Pollution Control, to incorporate by
reference 25 Pa. Code sections 130.201–
130.471 (Consumer Products) of
PADEP’s Air Pollution Control Act to
reduce emissions of volatile organic
compounds (VOC). In the Final Rules
section of this Federal Register, EPA is
approving the Commonwealth’s SIP
submittal as a direct final rule without
prior proposal because EPA views this
as a noncontroversial submittal and
anticipates no adverse comments. A
detailed rationale for the approval is set
forth in the direct final rule. If no
adverse comments are received in
response to this action, no further
activity is contemplated. If EPA receives
adverse comments, the direct final rule
will be withdrawn and all public
comments received will be addressed in
a subsequent final rule based on this
proposed rule. EPA will not institute a
second comment period. Any parties
interested in commenting on this action
should do so at this time.
DATES: Comments must be received in
writing by December 31, 2012.
ADDRESSES: Submit your comments,
identified by Docket ID Number EPA–
R03–OAR–2012–0797 by one of the
following methods:
A. www.regulations.gov. Follow the
on-line instructions for submitting
comments.
B. Email: mastro.donna@epa.gov
C. Mail: EPA–R03–OAR–2012–0797,
Donna Mastro, Acting Associate
Director, Office of Air Program
Planning, Mailcode 3AP30, U.S.
Environmental Protection Agency,
Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
D. Hand Delivery: At the previouslylisted EPA Region III address. Such
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SUMMARY:
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deliveries are only accepted during the
Docket’s normal hours of operation, and
special arrangements should be made
for deliveries of boxed information.
Instructions: Direct your comments to
Docket ID No. EPA–R03–OAR–2012–
0797. EPA’s policy is that all comments
received will be included in the public
docket without change, and may be
made available online at
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit information that you
consider to be CBI or otherwise
protected through www.regulations.gov
or email. The www.regulations.gov Web
site is an ‘‘anonymous access’’ system,
which means EPA will not know your
identity or contact information unless
you provide it in the body of your
comment. If you send an email
comment directly to EPA without going
through www.regulations.gov, your
email address will be automatically
captured and included as part of the
comment that is placed in the public
docket and made available on the
Internet. If you submit an electronic
comment, EPA recommends that you
include your name and other contact
information in the body of your
comment and with any disk or CD–ROM
you submit. If EPA cannot read your
comment due to technical difficulties
and cannot contact you for clarification,
EPA may not be able to consider your
comment. Electronic files should avoid
the use of special characters, any form
of encryption, and be free of any defects
or viruses.
Docket: All documents in the
electronic docket are listed in the
www.regulations.gov index. 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 in www.regulations.gov or
in hard copy during normal business
hours at the Air Protection Division,
U.S. Environmental Protection Agency,
Region III, 1650 Arch Street,
Philadelphia, Pennsylvania 19103.
Copies of the State submittal are
available at the Allegheny County
Health Department, Bureau of
Environmental Quality, Division of Air
Quality, 301 39th Street, Pittsburgh,
Pennsylvania 15201.
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FOR FURTHER INFORMATION CONTACT:
Gregory Becoat, (215) 814–2036, or by
email at becoat.gregory@epa.gov.
SUPPLEMENTARY INFORMATION: For
further information, please see the
information provided in the direct final
action, with the same title, ‘‘Approval
and Promulgation of Air Quality
Implementation Plans; Pennsylvania;
Allegheny County Incorporation by
Reference of Pennsylvania’s Consumer
Products Regulations,’’ that is located in
the ‘‘Rules and Regulations’’ section of
this Federal Register publication.
Dated: November 6, 2012.
W.C. Early,
Acting Regional Administrator, Region III.
[FR Doc. 2012–28832 Filed 11–28–12; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R01–OAR–2010–0198, FRL–9755–7]
Approval and Promulgation of Air
Quality Implementation Plans;
Connecticut; NOX Emission Trading
Orders as Single Source SIP Revisions
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
The EPA is proposing to
approve a State Implementation Plan
(SIP) revision submitted by the State of
Connecticut. This revision allows
facilities to create and/or use emission
credits to comply with the NOX
emission limits required by Regulations
of Connecticut State Agencies (RCSA)
section 22a–174–22 (Control of Nitrogen
Oxides) using NOx Emission Trading
Orders (trading orders). The intended
effect of this action is to propose
approval of the individual trading
orders to allow facilities to determine
the most cost-effective way to comply
with the state regulation. This action is
being taken in accordance with the
Clean Air Act.
DATES: Written comments must be
received on or before December 31,
2012.
ADDRESSES: Submit your comments,
identified by Docket ID Number EPA–
R01–OAR–2010–0198 by one of the
following methods:
1. www.regulations.gov: Follow the
on-line instructions for submitting
comments.
2. Email: dahl.donald@epa.gov.
3. Fax: (617) 918–0657
4. Mail: ‘‘Docket Identification
Number EPA–R01–OAR–2010–0198’’,
SUMMARY:
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Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Proposed Rules
Donald Dahl, U.S. Environmental
Protection Agency, EPA New England
Regional Office, Office of Ecosystem
Protection, Air Permits, Toxics, and
Indoor Programs Unit, 5 Post Office
Square—Suite 100, (Mail code OEP05–
2), Boston, MA 02109–3912.
5. Hand Delivery or Courier. Deliver
your comments to: Donald Dahl, Air
Permits, Toxics, and Indoor Programs
Unit, Office of Ecosystem Protection,
U.S. Environmental Protection Agency,
EPA New England Regional Office, 5
Post Office Square, 5th floor, (OEP05–2),
Boston, MA 02109–3912. Such
deliveries are only accepted during the
Regional Office’s normal hours of
operation. The Regional Office’s official
hours of business are Monday through
Friday, 8:30 to 4:30 excluding legal
holidays.
Instructions: Direct your comments to
Docket ID No. EPA–R01–OAR–2010–
0198. EPA’s policy is that all comments
received will be included in the public
docket without change and may be
made available online at
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
whose disclosure is restricted by statute.
Do not submit through
www.regulations.gov, or email,
information that you consider to be CBI
or otherwise protected. The
www.regulations.gov Web site is an
‘‘anonymous access’’ systems, which
means EPA will not know your identity
or contact information unless you
provide it in the body of your comment.
If you send an email comment directly
to EPA without going through
www.regulations.gov your email address
will be automatically captured and
included as part of the comment that is
placed in the public docket and made
available on the Internet. If you submit
an electronic comment, EPA
recommends that you include your
name and other contact information in
the body of your comment and with any
disk or CD–ROM you submit. If EPA
cannot read your comment due to
technical difficulties and cannot contact
you for clarification, EPA may not be
able to consider your comment.
Electronic files should avoid the use of
special characters, any form of
encryption, and be free of any defects or
viruses.
Docket: All documents in the
electronic docket are listed in the
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, i.e., CBI or other
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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 in www.regulations.gov or
in hard copy at Office of Ecosystem
Protection, U.S. Environmental
Protection Agency, EPA New England
Regional Office, 5 Post Office Square,
Suite 100, 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.
In addition to the publicly available
docket materials available for inspection
electronically in the Federal Docket
Management System at
www.regulations.gov, and the hard copy
available at the Regional Office, which
are identified in the ADDRESSES section
of this Federal Register, copies of the
state submittals are also available for
public inspection during normal
business hours, by appointment at the
State Air Agency. The Bureau of Air
Management, Department of
Environmental Protection, State Office
Building, 79 Elm Street, Hartford, CT
06106–1630.
FOR FURTHER INFORMATION CONTACT:
Donald Dahl, Air Permits, Toxics, and
Indoor Programs Unit, Office of
Ecosystem Protection, U.S.
Environmental Protection Agency, EPA
New England Regional Office, 5 Post
Office Square, Suite 100, (OEP05–2),
Boston, MA 02109–3912, phone number
(617) 918–1657, fax number (617) 918–
0657, email Dahl.Donald@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document whenever
‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean
EPA.
Table of Contents
I. Background and Purpose
II. What action is EPA proposing in today’s
notice?
III. What facilities are affected by today’s
action?
IV. Do these trading orders allow new
facilities to use emission credits to
comply with RACT?
V. How did EPA review and evaluate these
trading orders?
A. What is EPA’s analysis of the
fundamental principle of integrity?
1. Integrity Element One—Surplus
2. Integrity Element Two—Enforceable
3. Integrity Element Three—Quantifiable
4. Integrity Element Four—Permanent
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B. What is EPA’s analysis of the
fundamental principle of equity?
1. Equity Element One—General Equity
2. Equity Element Two—Environmental
Justice
C. What is EPA’s analysis of the
fundamental principle of environmental
benefit?
D. What is EPA’s analysis regarding the
RACT sources?
E. Conclusion
VI. Proposed Action
VII. Statutory and Executive Order Reviews
I. Background and Purpose
On August 18, 2000, December 12,
2002, July 1, 2004, and January 13,
2006, the State of Connecticut submitted
formal revisions to its State
Implementation Plan (SIP). These SIP
revisions consist of 149 source-specific
trading orders that allow 50 sources to
trade emission credits in order to
comply with state regulations for
reducing nitrogen oxide (NOX)
emissions. We previously approved
source-specific trading orders issued by
Connecticut under this program on
September 28, 1999 (64 FR 52233) and
March 23, 2001 (66 FR 16135).
II. What action is EPA proposing in
today’s notice?
Today, EPA is proposing to approve
149 NOX Emission Trading Orders that
will allow facilities in Connecticut to
generate and or use emission credits for
compliance with the NOX emission
limits that were established as part of
Connecticut’s strategy to lower ozone
levels, also known as reasonable
available control technology (RACT).
EPA is not taking action on some of the
orders included in the July 1, 2004
submittal: Trading Order 8021 issued to
Pfizer, Trading Order 8246 issued to
Sikorsky Aircraft, Trading Order 8110A
issued to Yale University and Consent
Order 7019A issued to Hamilton
Sundstrand Corporation. EPA is also not
taking action on the Creation Notice
Nos. NJ–1, NJ–2, and NJ–4 included in
the August 18, 2000 submittal. EPA will
take action on these orders and creation
notices at a later date. Lastly, EPA is not
taking action on Trading Orders 8115,
Modification 1 and 8115A issued to
University of Connecticut in Mansfield
because these trading orders were
superseded by Trading Order 8115B
which was included in the July 1, 2004
submittal.
III. What facilities are affected by
today’s action?
EPA is proposing to approve NOX
emission trading orders for the facilities
listed in the table below.
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Trading Order No(s).
Name of facility
1494A, 8116 Modification, 8116A, 8116B ..............................................
Connecticut Resources Recovery
Authority.
Connecticut Light and Power ........
1494 Modifications 2, 3, 4, 5, and 6 .......................................................
8154 Modifications 1, 2, and 3, 8154A ...................................................
1626, 1626 Modification 1, 8247 .............................................................
8159, 8181, 8181A, 8181A Modification 1, 8219, 8219A, 8219A Modification 1, 8251, 8251 Modification 1.
8109 .........................................................................................................
8093A, 8093B, 8093C, 8093C Modification 1, 8136, 8136A ..................
8119 Modification, 8119A, 8119A Modification 1 ...................................
8092 Modification, 8103 Modifications 1 and 2, 8177 Modification 1,
8241, 8241 Modification 1, 8242, 8243, 8244, 8244 Modification 1,
8253, 8253 Modification 1.
8115 Modification 2, 8115B ....................................................................
8107 Modifications 1 and 2, 8152, 8152 Modification, 8152A, 8221,
8221A, 8222, 8222A.
8180, 8180 Modification 1, 8180A, 8180A Modification 1 ......................
8114 Modifications 1 and 2, 8114A ........................................................
8117, 8117A, 8117B ...............................................................................
8157, 8160, 8162, 8182, 8182A, 8182A Modification 1, 8213, 8213A,
8213A Modification 1, 8214, 8214A, 8214A Modification 1, 8215,
8215A, 8215A Modification 1, 8227, 8227A, 8227A Modification 1.
8156, 8161, 8183, 8183A, 8183A Modification 1, 8216, 8216A, 8216A
Modification 1, 8217, 8217A, 8217A Modification 1.
8158, 8184, 8184A, 8184A Modification 1, 8218, 8218A, 8218A Modification 1.
8134, 8134A, 8248 ..................................................................................
8175, 8175 Modification 1, 8175A, 8175A Modification 1 ......................
8102 Modification, 8153, 8176 Modification 1, 8240, 8240 Modification
1, 8243.
8220, 8220A, 8220A Modification 1 ........................................................
8124, 8124A ............................................................................................
8120, 8120A ............................................................................................
8137 Modifications 1 and 2, 8137A ........................................................
8188 .........................................................................................................
8112, 8112A, 8112A Modification 1, 8201CC ........................................
8230 .........................................................................................................
8110 Modification ....................................................................................
8123 Modification, 8123A ........................................................................
8250, 8261 ..............................................................................................
8249, 8249 Modification 1 .......................................................................
8094 Modification ....................................................................................
8095 Modification ....................................................................................
8100 Modification ....................................................................................
8101 Modification ....................................................................................
8111 Modification ....................................................................................
8118 Modification ....................................................................................
8130 Modification ....................................................................................
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8132 Modification ....................................................................................
8141 Modification ....................................................................................
IV. Do these trading orders allow new
facilities to use emission credits to
comply with RACT?
Most of the trading orders being
approved today allow the same facilities
in Connecticut to continue to create or
use emission credits that were approved
into the SIP on September 28, 1999 (64
FR 52233) and March 23, 2001 (66 FR
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Combustion Engineering ...............
Borough of Naugatuck ...................
Connecticut Light and Power/
Devon Power LLC.
Hamilton Sundstrand .....................
Pfizer ..............................................
City of Norwich, Department of
Public Utilities.
United Illuminating/Wisvest-Connecticut LLC/PSEG Power Connecticut LLC.
University of Connecticut ...............
Northeast Nuclear Energy/Dominion Nuclear.
Connecticut Jet Power ..................
CYTEC Industries ..........................
Sprague Paperboard .....................
Connecticut Light and Power/Middletown Power LLC.
Connecticut Light and Power/
Montville Power LLC.
Connecticut Light and Power/Norwalk Power LLC.
United Technologies ......................
Northeast Generation Company ....
United Illuminating/Wisvest-Connecticut LLC/PSEG Power Connecticut LLC.
Bristol Meyers Squibb ...................
Stone Container .............................
Sikorsky Aircraft .............................
AlliedSignal and U.S. Army Tank ..
Allegheny Ludlum ..........................
United States Naval Submarine
Base.
Jacobs Vehicle Systems ...............
Yale University ...............................
Algonquin Gas Transmission ........
Algonquin Windsor Locks ..............
Capitol District Energy Center .......
Ogden Martin .................................
American Ref-Fuel .........................
Bridgeport Resco ...........................
Connecticut Department of Mental
Health and Addiction Services.
Uniroyal Chemical .........................
South Norwalk Electrical Works ....
Connecticut Department of Public
Works.
Bridgeport Hospital ........................
Town of Wallingford, Department
of Public Utilities.
16135). Facilities that are having their
trading orders approved for the first
time are: Hamilton Sundstrand in
Windsor Locks, Borough of Naugatuck
in Naugatuck, Bristol Meyers Squibb in
Wallingford, Capital District Energy
Center in Hartford, Combustion
Engineering in Windsor, Stone
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Facility location
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Hartford.
Branford, Greenwich, Hartford,
Montville, Middletown, Milford,
Preston,
Norwalk,
and
Torrington.
Windsor.
Naugatuck.
Milford.
Windsor Locks.
Groton.
Norwich.
Bridgeport.
Storrs.
Waterford.
Branford,
Greenwich,
Torrington.
Wallingford.
Versailles.
Middletown.
and
Montville.
Norwalk.
East Hartford.
Berlin.
New Haven.
Wallingford.
Uncasville.
Stratford.
Stratford.
Wallingford.
Groton.
Bloomfield.
New Haven.
Cromwell.
Windsor Locks.
Hartford.
Bristol.
Preston.
Bridgeport.
Middletown.
Naugatuck.
Norwalk.
Newtown.
Bridgeport.
Wallingford.
Container in Uncasville, and Sprague
Paperboard in Versailles.
V. How did EPA review and evaluate
these trading orders?
EPA issued a guidance document
‘‘Improving Air Quality With Economic
Incentive Programs’’ (EIP Guidance).
(See EPA–452/R–01–001, January 2001).
This guidance applies to discretionary
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emission trading programs (EIPs) that
are submitted to EPA for approval as a
revision of the State Implementation
Plan to attain national ambient air
quality standards for criteria pollutants.
This guidance does not require review
of previously approved programs and is
not EPA’s final action on these
discretionary emission trading
programs. EPA’s final action on these
discretionary emission trading programs
occurs when EPA acts on a State’s
request to revise the SIP. The EIP
Guidance is non-binding.
Fundamental principles that apply to
all EIPs are integrity (meaning that
credits are based on emission reductions
that are surplus, enforceable,
quantifiable, and permanent), equity,
and environmental benefit. These
fundamental principles can apply to an
EIP in its entirety (the programmatic
level) or to individual sources (the
source-specific level). In addition, EIPs
that allow sources to purchase credits to
demonstrate compliance with
reasonable available control technology
(RACT) need to meet additional
requirements specified in section 16.13
of the EIP Guidance. EPA evaluated the
Connecticut trading orders against these
three fundamental principles, additional
requirements for sources subject to
RACT, and applicable Clean Air Act
requirements. Connecticut’s trading
orders are fully consistent with these
fundamental principles and the
requirements for sources subject to
RACT, and EPA is approving these
trading orders as part of Connecticut’s
SIP.
A. What is EPA’s analysis of the
fundamental principle of integrity?
The fundamental principle of
integrity consists of the qualities of
being surplus, enforceable, quantifiable,
and permanent.
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1. Integrity Element One—Surplus
Emission reductions are surplus if the
reductions are not presently relied upon
in any other air quality-related programs
such as the SIP, SIP-related
requirements such as transportation
conformity, other adopted state
measures not in the SIP, Federal rules
that focus on reducing precursors of
criteria pollutants such as new source
performance standards, or a consent
decree. Emission reductions measured
by sources on a retrospective basis are
surplus if the source’s actual emissions
are below its baseline allowable or
historical actual emissions, whichever is
lower, and the retrospective inventories
reflect actual emission information as
appropriate.
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Each source-specific trading order
Connecticut submitted creates emission
reduction credits (ERCs), establishes a
baseline of 1990, and sets emission
limits based on the most stringent
applicable emission rate. Credits are
only generated when a permitted
facility’s emissions are below the
emission rate and the baseline.
Therefore the credits produced are in
addition to reductions from other
requirements of the Clean Air Act.
2. Integrity Element Two—Enforceable
Emission reductions use, generation,
and other required actions in the EIP are
enforceable on a programmatic basis if
they are independently verifiable,
define program violations, and identify
those liable for violations. For
enforceability, both the State and EPA
should have the ability to apply
penalties and secure appropriate
corrective actions where applicable.
Citizens should also have access to all
the emissions-related information
obtained from the source so that citizens
can file suits against sources for
violations. Required actions must be
practicably enforceable in accordance
with other EPA guidance on practicable
enforceability. At the source- specific
level, the source must be liable for
violations, the liable party must be
identifiable, and the State, the public,
and EPA must be able to independently
verify a source’s compliance. The EIP
Guidance outlines enforcement
elements common to all trading EIPs in
Chapter 6.0.
Each facility participating in trading
NOX credits has been issued a sourcespecific trading order containing
enforceable conditions for quantifying,
recording, and reporting ERCs. Each
trading order establishes the
monitoring/testing protocol, quantifying
emissions based on either a periodic
stack test for developing an emission
rate or continuous emission monitors
that directly measure NOX emissions.
Each trading order establishes reporting
requirements which includes emissions
based upon the approved monitoring/
testing protocol, the number of credits
the source generated, if any, and credits
the source previously banked or
purchased to cover its emissions. The
State also reviews all of the sources
subject to trading orders to determine
which sources did not meet the specific
conditions of their trading orders.
Connecticut has authority to enforce the
trading orders and the underlying RACT
requirements of Regulations of
Connecticut State Agencies (RCSA)
section 22a–174–22 pursuant to RCSA
section 22a–174–12. By approving these
source-specific trading orders, they will
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become part of the SIP and be
enforceable by both EPA and citizens.
3. Integrity Element Three—
Quantifiable
The generation or use of emission
reductions by a source is quantifiable on
a source-specific basis if the source can
reliably calculate the amount of
emissions and/or emission reductions
occurring during the implementation of
the program, and replicate the
calculations. The EIP Guidance further
states that when quantifying results,
sources must use the same methodology
used to measure baseline emissions,
unless there are good technical reasons
that this approach is not appropriate.
Common elements for quantifying
results of an EIP are included in Chapter
5.0 of the EIP Guidance. All EIPs should
incorporate provisions for predicting
results, addressing uncertainty,
approving quantification protocols, and
emission quantification methods. For a
reduction to be certified as an ERC, the
reduction must be real, quantifiable, and
surplus at the time the ERC is generated.
Each source-specific trading order
contains a protocol for quantifying
emissions. Continuous Emission
Monitors (CEMs) are used to quantify
emissions at electric generating units
that are creating ERCs. CEMs at these
facilities are also used to determine if
the source needs to use ERCs to comply
with NOX RACT. For sources without
CEMs, the protocol requires the source
to determine a NOX emission rate
through stack testing. The source is also
required to maintain fuel use records.
Each trading order contains an equation
that calculates NOX emissions on a mass
basis using the results from the most
recent stack test, CEMs data and/or fuel
records. The generation and use of
credits is therefore quantifiable.
4. Integrity Element Four—Permanent
To satisfy the EIP Guidance
expectations for permanence,
Connecticut’s trading program must
ensure that no emission increases
(compared to emissions if there was no
EIP) occur over the time defined in the
SIP. On a source-specific basis, the
permanence expectations are met if the
sources participating in the EIP commit
to actions or achieve reductions for a
future period of time as defined in the
EIP.
Each source-specific trading order
expires five years from the issuance
date. This allows Connecticut to
determine every five years if emission
trading is still the best mechanism for
reducing NOX emissions at an
individual source. Issuing new trading
orders every five years also allows the
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State to take into account any new CAA
requirements that become effective after
the initial trading order was issued.
On an annual basis, sources must
report to Connecticut all ERCs generated
and used. The State reviews each credit
generated and assigns an identification
number to each credit. The annual
reports allow the State to determine
both the generator and user of each
credit. Because each credit generated
receives an individual identification
number, the State can reliably track
their use.
B. What is EPA’s analysis of the
fundamental principle of equity?
The equity principle is composed of
two elements—general equity and
environmental justice.
pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
1. Equity Element One—General Equity
General equity means that an EIP
ensures all segments of the population
are protected from public health
problems and no segment of the
population receives a disproportionate
share of a program’s disbenefits. EIPs
should specifically protect communities
from disproportionate impacts from
emission shifts and foregone emission
reductions.
Connecticut has determined the
majority of emission credits are
generated at a few electric generating
units and some other large industrial
boilers that have continuous emission
monitors. These sources are large
emitters that can economically decrease
emissions on a large scale. However,
sources using emission credits are much
smaller emitters of NOX and are spread
throughout the State. Therefore, while
the benefit of emissions reductions may
be higher in certain geographic areas,
the impact from sources using credits
will not severely impact one geographic
area over another.
2. Equity Element Two—Environmental
Justice
The environmental justice (EJ)
element applies if the EIP covers VOCs
and could disproportionately impact
communities populated by racial
minorities, people with low incomes,
and/or Tribes. The Connecticut trading
program does not allow emission
trading of VOC credits. Therefore,
today’s actions allowing the trading of
NOX emission credits does not create an
EJ issue.
C. What is EPA’s analysis of the
fundamental principle of environmental
benefit?
All EIPs must be environmentally
beneficial and can demonstrate this
principle through more rapid emission
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15:00 Nov 28, 2012
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reductions or faster attainment than
would have occurred without the EIP.
The discrete emission reduction
credit (DERC) EIP meets the
expectations for the environmental
benefit principle. The ability to generate
DERCs provides an incentive for early
compliance and more rapid emission
reductions. Connecticut sources that
create emission credits through their
respective trading orders must discount
the actual credits generated by 10%. In
addition, Connecticut discounts the
credits generated or used at some
sources depending on certain
conditions, such as an additional 10%
discount rate for sources using stack
tests in lieu of continuous emission
monitors. These various discount rates
result in greater emission reductions
then would otherwise be achieved
without trading, resulting in an
environmental benefit.
D. What is EPA’s analysis regarding the
RACT sources?
Sources must use the presumptive
RACT limit in the baseline calculation.
Sources are not allowed to use an
alternative RACT limit in determining
the baseline emission rate.
Connecticut’s trading orders use the
lower of actual emissions in 1990 or the
RACT emission limit established for the
specific source category, whichever is
less. The source-specific trading orders
do not use an alternative RACT
emission rate.
The EIP Guidance also contains
guidance for RACT emission limits with
long averaging times and prohibits
emission credits generated outside of
the ozone season from being used
during the ozone season.
Connecticut’s trading orders limit
sources requiring credits for excess
emissions during ozone season to only
use credits generated during ozone
season.
E. Conclusion
EPA reviewed the source-specific
trading orders with respect to the
expectations of the EIP Guidance and
the requirements of the Clean Air Act.
EPA has concluded after review and
analysis of the source-specific trading
orders that they are approvable.
VI. Proposed Action
EPA is proposing to approve the
Connecticut SIP revision for the NOX
trading orders, which were submitted
on August 18, 2000, December 12, 2002,
July 1, 2004, and January 13, 2006. EPA
is soliciting public comments on the
issues discussed in this notice or on
other relevant matters. These comments
will be considered before taking final
PO 00000
Frm 00006
Fmt 4702
Sfmt 4702
action. Interested parties may
participate in the Federal rulemaking
procedure by submitting written
comments to the EPA New England
Regional Office listed in the ADDRESSES
section of this Federal Register.
The Agency has reviewed this request
for revision of the Federally-approved
State implementation plan for
conformance with the provisions of the
1990 amendments enacted on November
15, 1990. The Agency has made the
determination that the SIP revision is
approvable because it is in accordance
with the CAA and EPA regulations.
VII. Statutory and Executive Order
Reviews
Under the Clean Air Act, the
Administrator is required to approve a
SIP submission that complies with the
provisions of the Act and applicable
Federal regulations. 42 U.S.C. 7410(k);
40 CFR 52.02(a). Thus, in reviewing SIP
submissions, EPA’s role is to approve
state choices, provided that they meet
the criteria of the Clean Air Act.
Accordingly, this proposed action
merely approves state law as meeting
Federal requirements and does not
impose additional requirements beyond
those imposed by state law. For that
reason, this proposed action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Order 12866 (58 FR 51735,
October 4, 1993);
• Does not impose an information
collection burden under the provisions
of the Paperwork Reduction Act (44
U.S.C. 3501 et seq.);
• Is certified as not having a
significant economic impact on a
substantial number of small entities
under the Regulatory Flexibility Act (5
U.S.C. 601 et seq.);
• 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);
• Does not have Federalism
implications as specified in Executive
Order 13132 (64 FR 43255, August 10,
1999);
• Is not an economically significant
regulatory action based on health or
safety risks subject to Executive Order
13045 (62 FR 19885, April 23, 1997);
• Is not a significant regulatory action
subject to Executive Order 13211 (66 FR
28355, May 22, 2001);
• Is not subject to requirements of
Section 12(d) of the National
Technology Transfer and Advancement
Act of 1995 (15 U.S.C. 272 note) because
application of those requirements would
E:\FR\FM\29NOP1.SGM
29NOP1
Federal Register / Vol. 77, No. 230 / Thursday, November 29, 2012 / Proposed Rules
be inconsistent with the Clean Air Act;
and
• Does not provide EPA with the
discretionary authority to address, as
appropriate, disproportionate human
health or environmental effects, using
practicable and legally permissible
methods, under Executive Order 12898
(59 FR 7629, February 16, 1994).
In addition, this rule does not have
tribal implications as specified by
Executive Order 13175 (65 FR 67249,
November 9, 2000), because the SIP is
not approved to apply in Indian country
located in the state, and EPA notes that
it will not impose substantial direct
costs on tribal governments or preempt
tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Carbon monoxide,
Incorporation by reference,
Intergovernmental relations, Nitrogen
dioxide, Reporting and recordkeeping
requirements.
Dated: November 14, 2012.
H. Curtis Spalding,
Regional Administrator, EPA New England.
[FR Doc. 2012–28908 Filed 11–28–12; 8:45 am]
BILLING CODE 6560–50–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
[EPA–R06–OAR–2005–NM–0006; FRL–
9756–3]
Approval and Promulgation of
Implementation Plans; New Mexico;
New Source Review (NSR)
Preconstruction Permitting Program
Environmental Protection
Agency (EPA).
ACTION: Proposed rule.
AGENCY:
EPA is proposing to approve
revisions to the applicable New Source
Review (NSR) State Implementation
Plan (SIP) for New Mexico. Among the
changes, EPA is proposing to approve
are the following: The establishment of
a new minor NSR (MNSR) general
construction permitting program;
changes to the MNSR Public
Participation requirements; the
establishment of three different types of
MNSR Permit Revisions; and the
addition of exemptions for de minimis
emission sources and activities from
obtaining a MNSR permit. EPA proposes
to find that these revisions to the New
Mexico SIP comply with the Federal
Clean Air Act (the Act or CAA) and EPA
regulations and are consistent with EPA
pmangrum on DSK3VPTVN1PROD with PROPOSALS-1
SUMMARY:
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policies. EPA is proposing this action
under section 110 of the Act.
DATES: Comments must be received on
or before December 31, 2012.
ADDRESSES: Submit your comments,
identified by Docket ID No. EPA–R06–
OAR–2005–NM–0006, by one of the
following methods:
(1) www.regulations.gov: Follow the
on-line instructions for submitting
comments.
(2) Email: Ms. Ashley Mohr at
mohr.ashley@epa.gov.
(3) Fax: Ms. Ashley Mohr, Air Permits
Section (6PD–R), at fax number 214–
665–6762.
(4) Mail: Ms. Ashley Mohr, Air
Permits Section (6PD–R), Environmental
Protection Agency, 1445 Ross Avenue,
Suite 1200, Dallas, Texas 75202–2733.
(5) Hand or Courier Delivery: Ms.
Ashley Mohr, Air Permits Section (6PD–
R), Environmental Protection Agency,
1445 Ross Avenue, Suite 1200, Dallas,
Texas 75202–2733. Such deliveries are
accepted only between the hours of 8:30
a.m. and 4:30 p.m. weekdays except for
legal holidays. Special arrangements
should be made for deliveries of boxed
information.
Instructions: Direct your comments to
Docket ID No. EPA–R06–OAR–2005–
NM–0006. EPA’s policy is that all
comments received will be included in
the public docket without change and
may be made available online at https://
www.regulations.gov, including any
personal information provided, unless
the comment includes information
claimed to be Confidential Business
Information (CBI) or other information
the disclosure of which is restricted by
statute. Do not submit information
through https://www.regulations.gov or
email, if you believe that it is CBI or
otherwise protected from disclosure.
The https://www.regulations.gov Web
site is an ‘‘anonymous access’’ system,
which means that EPA will not know
your identity or contact information
unless you provide it in the body of
your comment. If you send an email
comment directly to EPA without going
through https://www.regulations.gov,
your email address will be
automatically captured and included as
part of the comment that is placed in the
public docket and made available on the
Internet. If you submit an electronic
comment, EPA recommends that you
include your name and other contact
information in the body of your
comment along with any disk or CD–
ROM submitted. 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
PO 00000
Frm 00007
Fmt 4702
Sfmt 4702
71145
should avoid the use of special
characters and any form of encryption
and should be free of any defects or
viruses. For additional information
about EPA’s public docket, visit the EPA
Docket Center homepage at https://
www.epa.gov/epahome/dockets.htm.
Docket: All documents in the docket
are listed in the https://
www.regulations.gov index. Although
listed in the index, some information is
not publicly available, e.g., CBI or other
information the disclosure of which is
restricted by statute. Certain other
material, such as copyrighted material,
will be publicly available only in hard
copy. Publicly available docket
materials are available either
electronically in https://
www.regulations.gov or in hard copy at
the Air Permits Section (6PD–R),
Environmental Protection Agency, 1445
Ross Avenue, Suite 700, Dallas, Texas
75202–2733. The file will be made
available by appointment for public
inspection in the Region 6 FOIA Review
Room between the hours of 8:30 a.m.
and 4:30 p.m. weekdays except for legal
holidays. Contact the person listed in
the FOR FURTHER INFORMATION CONTACT
paragraph below to make an
appointment. If possible, please make
the appointment at least two working
days in advance of your visit. A 15 cent
per page fee will be charged for making
photocopies of documents. On the day
of the visit, please check in at the EPA
Region 6 reception area on the seventh
floor at 1445 Ross Avenue, Suite 700,
Dallas, Texas.
The State submittal related to this SIP
revision, and which is part of the EPA
docket, is also available for public
inspection at the State Air Agency listed
below during official business hours by
appointment:
New Mexico Environment
Department, Air Quality Bureau, 1301
Siler Road, Building B, Santa Fe, New
Mexico.
FOR FURTHER INFORMATION CONTACT: If
you have questions concerning today’s
direct final action, please contact Ms.
Ashley Mohr (6PD–R), Air Permits
Section, Environmental Protection
Agency, Region 6, 1445 Ross Avenue
(6PD–R), Suite 1200, Dallas, Texas
75202–2733, telephone (214) 665–7289;
fax number (214) 665–6762; email
address mohr.ashley@epa.gov.
SUPPLEMENTARY INFORMATION:
Throughout this document the
following terms have the meanings
described below:
• ‘‘we’’, ‘‘us’’ and ‘‘our’’ refer to EPA.
• ‘‘Act’’ and ‘‘CAA’’ mean the Clean
Air Act.
E:\FR\FM\29NOP1.SGM
29NOP1
]]>Agencies
[Federal Register Volume 77, Number 230 (Thursday, November 29, 2012)]
[Proposed Rules]
[Pages 71140-71145]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-28908]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R01-OAR-2010-0198, FRL-9755-7]
Approval and Promulgation of Air Quality Implementation Plans;
Connecticut; NOX Emission Trading Orders as Single Source
SIP Revisions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: The EPA is proposing to approve a State Implementation Plan
(SIP) revision submitted by the State of Connecticut. This revision
allows facilities to create and/or use emission credits to comply with
the NOX emission limits required by Regulations of
Connecticut State Agencies (RCSA) section 22a-174-22 (Control of
Nitrogen Oxides) using NOx Emission Trading Orders (trading orders).
The intended effect of this action is to propose approval of the
individual trading orders to allow facilities to determine the most
cost-effective way to comply with the state regulation. This action is
being taken in accordance with the Clean Air Act.
DATES: Written comments must be received on or before December 31,
2012.
ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R01-OAR-2010-0198 by one of the following methods:
1. www.regulations.gov: Follow the on-line instructions for
submitting comments.
2. Email: dahl.donald@epa.gov.
3. Fax: (617) 918-0657
4. Mail: ``Docket Identification Number EPA-R01-OAR-2010-0198'',
[[Page 71141]]
Donald Dahl, U.S. Environmental Protection Agency, EPA New England
Regional Office, Office of Ecosystem Protection, Air Permits, Toxics,
and Indoor Programs Unit, 5 Post Office Square--Suite 100, (Mail code
OEP05-2), Boston, MA 02109-3912.
5. Hand Delivery or Courier. Deliver your comments to: Donald Dahl,
Air Permits, Toxics, and Indoor Programs Unit, Office of Ecosystem
Protection, U.S. Environmental Protection Agency, EPA New England
Regional Office, 5 Post Office Square, 5th floor, (OEP05-2), Boston, MA
02109-3912. Such deliveries are only accepted during the Regional
Office's normal hours of operation. The Regional Office's official
hours of business are Monday through Friday, 8:30 to 4:30 excluding
legal holidays.
Instructions: Direct your comments to Docket ID No. EPA-R01-OAR-
2010-0198. EPA's policy is that all comments received will be included
in the public docket without change and may be made available online at
www.regulations.gov, including any personal information provided,
unless the comment includes information claimed to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Do not submit through www.regulations.gov, or
email, information that you consider to be CBI or otherwise protected.
The www.regulations.gov Web site is an ``anonymous access'' systems,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an email
comment directly to EPA without going through www.regulations.gov your
email address will be automatically captured and included as part of
the comment that is placed in the public docket and made available on
the Internet. If you submit an electronic comment, EPA recommends that
you include your name and other contact information in the body of your
comment and with any disk or CD-ROM you submit. If EPA cannot read your
comment due to technical difficulties and cannot contact you for
clarification, EPA may not be able to consider your comment. Electronic
files should avoid the use of special characters, any form of
encryption, and be free of any defects or viruses.
Docket: All documents in the electronic docket are listed in the
www.regulations.gov index. 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 in www.regulations.gov or
in hard copy at Office of Ecosystem Protection, U.S. Environmental
Protection Agency, EPA New England Regional Office, 5 Post Office
Square, Suite 100, 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.
In addition to the publicly available docket materials available
for inspection electronically in the Federal Docket Management System
at www.regulations.gov, and the hard copy available at the Regional
Office, which are identified in the ADDRESSES section of this Federal
Register, copies of the state submittals are also available for public
inspection during normal business hours, by appointment at the State
Air Agency. The Bureau of Air Management, Department of Environmental
Protection, State Office Building, 79 Elm Street, Hartford, CT 06106-
1630.
FOR FURTHER INFORMATION CONTACT: Donald Dahl, Air Permits, Toxics, and
Indoor Programs Unit, Office of Ecosystem Protection, U.S.
Environmental Protection Agency, EPA New England Regional Office, 5
Post Office Square, Suite 100, (OEP05-2), Boston, MA 02109-3912, phone
number (617) 918-1657, fax number (617) 918-0657, email
Dahl.Donald@epa.gov.
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.
Table of Contents
I. Background and Purpose
II. What action is EPA proposing in today's notice?
III. What facilities are affected by today's action?
IV. Do these trading orders allow new facilities to use emission
credits to comply with RACT?
V. How did EPA review and evaluate these trading orders?
A. What is EPA's analysis of the fundamental principle of
integrity?
1. Integrity Element One--Surplus
2. Integrity Element Two--Enforceable
3. Integrity Element Three--Quantifiable
4. Integrity Element Four--Permanent
B. What is EPA's analysis of the fundamental principle of
equity?
1. Equity Element One--General Equity
2. Equity Element Two--Environmental Justice
C. What is EPA's analysis of the fundamental principle of
environmental benefit?
D. What is EPA's analysis regarding the RACT sources?
E. Conclusion
VI. Proposed Action
VII. Statutory and Executive Order Reviews
I. Background and Purpose
On August 18, 2000, December 12, 2002, July 1, 2004, and January
13, 2006, the State of Connecticut submitted formal revisions to its
State Implementation Plan (SIP). These SIP revisions consist of 149
source-specific trading orders that allow 50 sources to trade emission
credits in order to comply with state regulations for reducing nitrogen
oxide (NOX) emissions. We previously approved source-
specific trading orders issued by Connecticut under this program on
September 28, 1999 (64 FR 52233) and March 23, 2001 (66 FR 16135).
II. What action is EPA proposing in today's notice?
Today, EPA is proposing to approve 149 NOX Emission
Trading Orders that will allow facilities in Connecticut to generate
and or use emission credits for compliance with the NOX
emission limits that were established as part of Connecticut's strategy
to lower ozone levels, also known as reasonable available control
technology (RACT). EPA is not taking action on some of the orders
included in the July 1, 2004 submittal: Trading Order 8021 issued to
Pfizer, Trading Order 8246 issued to Sikorsky Aircraft, Trading Order
8110A issued to Yale University and Consent Order 7019A issued to
Hamilton Sundstrand Corporation. EPA is also not taking action on the
Creation Notice Nos. NJ-1, NJ-2, and NJ-4 included in the August 18,
2000 submittal. EPA will take action on these orders and creation
notices at a later date. Lastly, EPA is not taking action on Trading
Orders 8115, Modification 1 and 8115A issued to University of
Connecticut in Mansfield because these trading orders were superseded
by Trading Order 8115B which was included in the July 1, 2004
submittal.
III. What facilities are affected by today's action?
EPA is proposing to approve NOX emission trading orders
for the facilities listed in the table below.
[[Page 71142]]
------------------------------------------------------------------------
Trading Order No(s). Name of facility Facility location
------------------------------------------------------------------------
1494A, 8116 Modification, 8116A, Connecticut Hartford.
8116B. Resources
Recovery
Authority.
1494 Modifications 2, 3, 4, 5, Connecticut Light Branford,
and 6. and Power. Greenwich,
Hartford,
Montville,
Middletown,
Milford, Preston,
Norwalk, and
Torrington.
8154 Modifications 1, 2, and 3, Combustion Windsor.
8154A. Engineering.
1626, 1626 Modification 1, 8247. Borough of Naugatuck.
Naugatuck.
8159, 8181, 8181A, 8181A Connecticut Light Milford.
Modification 1, 8219, 8219A, and Power/Devon
8219A Modification 1, 8251, Power LLC.
8251 Modification 1.
8109............................ Hamilton Windsor Locks.
Sundstrand.
8093A, 8093B, 8093C, 8093C Pfizer............ Groton.
Modification 1, 8136, 8136A.
8119 Modification, 8119A, 8119A City of Norwich, Norwich.
Modification 1. Department of
Public Utilities.
8092 Modification, 8103 United Bridgeport.
Modifications 1 and 2, 8177 Illuminating/
Modification 1, 8241, 8241 Wisvest-
Modification 1, 8242, 8243, Connecticut LLC/
8244, 8244 Modification 1, PSEG Power
8253, 8253 Modification 1. Connecticut LLC.
8115 Modification 2, 8115B...... University of Storrs.
Connecticut.
8107 Modifications 1 and 2, Northeast Nuclear Waterford.
8152, 8152 Modification, 8152A, Energy/Dominion
8221, 8221A, 8222, 8222A. Nuclear.
8180, 8180 Modification 1, Connecticut Jet Branford,
8180A, 8180A Modification 1. Power. Greenwich, and
Torrington.
8114 Modifications 1 and 2, CYTEC Industries.. Wallingford.
8114A.
8117, 8117A, 8117B.............. Sprague Paperboard Versailles.
8157, 8160, 8162, 8182, 8182A, Connecticut Light Middletown.
8182A Modification 1, 8213, and Power/
8213A, 8213A Modification 1, Middletown Power
8214, 8214A, 8214A Modification LLC.
1, 8215, 8215A, 8215A
Modification 1, 8227, 8227A,
8227A Modification 1.
8156, 8161, 8183, 8183A, 8183A Connecticut Light Montville.
Modification 1, 8216, 8216A, and Power/
8216A Modification 1, 8217, Montville Power
8217A, 8217A Modification 1. LLC.
8158, 8184, 8184A, 8184A Connecticut Light Norwalk.
Modification 1, 8218, 8218A, and Power/Norwalk
8218A Modification 1. Power LLC.
8134, 8134A, 8248............... United East Hartford.
Technologies.
8175, 8175 Modification 1, Northeast Berlin.
8175A, 8175A Modification 1. Generation
Company.
8102 Modification, 8153, 8176 United New Haven.
Modification 1, 8240, 8240 Illuminating/
Modification 1, 8243. Wisvest-
Connecticut LLC/
PSEG Power
Connecticut LLC.
8220, 8220A, 8220A Modification Bristol Meyers Wallingford.
1. Squibb.
8124, 8124A..................... Stone Container... Uncasville.
8120, 8120A..................... Sikorsky Aircraft. Stratford.
8137 Modifications 1 and 2, AlliedSignal and Stratford.
8137A. U.S. Army Tank.
8188............................ Allegheny Ludlum.. Wallingford.
8112, 8112A, 8112A Modification United States Groton.
1, 8201CC. Naval Submarine
Base.
8230............................ Jacobs Vehicle Bloomfield.
Systems.
8110 Modification............... Yale University... New Haven.
8123 Modification, 8123A........ Algonquin Gas Cromwell.
Transmission.
8250, 8261...................... Algonquin Windsor Windsor Locks.
Locks.
8249, 8249 Modification 1....... Capitol District Hartford.
Energy Center.
8094 Modification............... Ogden Martin...... Bristol.
8095 Modification............... American Ref-Fuel. Preston.
8100 Modification............... Bridgeport Resco.. Bridgeport.
8101 Modification............... Connecticut Middletown.
Department of
Mental Health and
Addiction
Services.
8111 Modification............... Uniroyal Chemical. Naugatuck.
8118 Modification............... South Norwalk Norwalk.
Electrical Works.
8130 Modification............... Connecticut Newtown.
Department of
Public Works.
8132 Modification............... Bridgeport Bridgeport.
Hospital.
8141 Modification............... Town of Wallingford.
Wallingford,
Department of
Public Utilities.
------------------------------------------------------------------------
IV. Do these trading orders allow new facilities to use emission
credits to comply with RACT?
Most of the trading orders being approved today allow the same
facilities in Connecticut to continue to create or use emission credits
that were approved into the SIP on September 28, 1999 (64 FR 52233) and
March 23, 2001 (66 FR 16135). Facilities that are having their trading
orders approved for the first time are: Hamilton Sundstrand in Windsor
Locks, Borough of Naugatuck in Naugatuck, Bristol Meyers Squibb in
Wallingford, Capital District Energy Center in Hartford, Combustion
Engineering in Windsor, Stone Container in Uncasville, and Sprague
Paperboard in Versailles.
V. How did EPA review and evaluate these trading orders?
EPA issued a guidance document ``Improving Air Quality With
Economic Incentive Programs'' (EIP Guidance). (See EPA-452/R-01-001,
January 2001). This guidance applies to discretionary
[[Page 71143]]
emission trading programs (EIPs) that are submitted to EPA for approval
as a revision of the State Implementation Plan to attain national
ambient air quality standards for criteria pollutants. This guidance
does not require review of previously approved programs and is not
EPA's final action on these discretionary emission trading programs.
EPA's final action on these discretionary emission trading programs
occurs when EPA acts on a State's request to revise the SIP. The EIP
Guidance is non-binding.
Fundamental principles that apply to all EIPs are integrity
(meaning that credits are based on emission reductions that are
surplus, enforceable, quantifiable, and permanent), equity, and
environmental benefit. These fundamental principles can apply to an EIP
in its entirety (the programmatic level) or to individual sources (the
source-specific level). In addition, EIPs that allow sources to
purchase credits to demonstrate compliance with reasonable available
control technology (RACT) need to meet additional requirements
specified in section 16.13 of the EIP Guidance. EPA evaluated the
Connecticut trading orders against these three fundamental principles,
additional requirements for sources subject to RACT, and applicable
Clean Air Act requirements. Connecticut's trading orders are fully
consistent with these fundamental principles and the requirements for
sources subject to RACT, and EPA is approving these trading orders as
part of Connecticut's SIP.
A. What is EPA's analysis of the fundamental principle of integrity?
The fundamental principle of integrity consists of the qualities of
being surplus, enforceable, quantifiable, and permanent.
1. Integrity Element One--Surplus
Emission reductions are surplus if the reductions are not presently
relied upon in any other air quality-related programs such as the SIP,
SIP-related requirements such as transportation conformity, other
adopted state measures not in the SIP, Federal rules that focus on
reducing precursors of criteria pollutants such as new source
performance standards, or a consent decree. Emission reductions
measured by sources on a retrospective basis are surplus if the
source's actual emissions are below its baseline allowable or
historical actual emissions, whichever is lower, and the retrospective
inventories reflect actual emission information as appropriate.
Each source-specific trading order Connecticut submitted creates
emission reduction credits (ERCs), establishes a baseline of 1990, and
sets emission limits based on the most stringent applicable emission
rate. Credits are only generated when a permitted facility's emissions
are below the emission rate and the baseline. Therefore the credits
produced are in addition to reductions from other requirements of the
Clean Air Act.
2. Integrity Element Two--Enforceable
Emission reductions use, generation, and other required actions in
the EIP are enforceable on a programmatic basis if they are
independently verifiable, define program violations, and identify those
liable for violations. For enforceability, both the State and EPA
should have the ability to apply penalties and secure appropriate
corrective actions where applicable. Citizens should also have access
to all the emissions-related information obtained from the source so
that citizens can file suits against sources for violations. Required
actions must be practicably enforceable in accordance with other EPA
guidance on practicable enforceability. At the source- specific level,
the source must be liable for violations, the liable party must be
identifiable, and the State, the public, and EPA must be able to
independently verify a source's compliance. The EIP Guidance outlines
enforcement elements common to all trading EIPs in Chapter 6.0.
Each facility participating in trading NOX credits has
been issued a source-specific trading order containing enforceable
conditions for quantifying, recording, and reporting ERCs. Each trading
order establishes the monitoring/testing protocol, quantifying
emissions based on either a periodic stack test for developing an
emission rate or continuous emission monitors that directly measure
NOX emissions. Each trading order establishes reporting
requirements which includes emissions based upon the approved
monitoring/testing protocol, the number of credits the source
generated, if any, and credits the source previously banked or
purchased to cover its emissions. The State also reviews all of the
sources subject to trading orders to determine which sources did not
meet the specific conditions of their trading orders. Connecticut has
authority to enforce the trading orders and the underlying RACT
requirements of Regulations of Connecticut State Agencies (RCSA)
section 22a-174-22 pursuant to RCSA section 22a-174-12. By approving
these source-specific trading orders, they will become part of the SIP
and be enforceable by both EPA and citizens.
3. Integrity Element Three--Quantifiable
The generation or use of emission reductions by a source is
quantifiable on a source-specific basis if the source can reliably
calculate the amount of emissions and/or emission reductions occurring
during the implementation of the program, and replicate the
calculations. The EIP Guidance further states that when quantifying
results, sources must use the same methodology used to measure baseline
emissions, unless there are good technical reasons that this approach
is not appropriate. Common elements for quantifying results of an EIP
are included in Chapter 5.0 of the EIP Guidance. All EIPs should
incorporate provisions for predicting results, addressing uncertainty,
approving quantification protocols, and emission quantification
methods. For a reduction to be certified as an ERC, the reduction must
be real, quantifiable, and surplus at the time the ERC is generated.
Each source-specific trading order contains a protocol for
quantifying emissions. Continuous Emission Monitors (CEMs) are used to
quantify emissions at electric generating units that are creating ERCs.
CEMs at these facilities are also used to determine if the source needs
to use ERCs to comply with NOX RACT. For sources without
CEMs, the protocol requires the source to determine a NOX
emission rate through stack testing. The source is also required to
maintain fuel use records. Each trading order contains an equation that
calculates NOX emissions on a mass basis using the results
from the most recent stack test, CEMs data and/or fuel records. The
generation and use of credits is therefore quantifiable.
4. Integrity Element Four--Permanent
To satisfy the EIP Guidance expectations for permanence,
Connecticut's trading program must ensure that no emission increases
(compared to emissions if there was no EIP) occur over the time defined
in the SIP. On a source-specific basis, the permanence expectations are
met if the sources participating in the EIP commit to actions or
achieve reductions for a future period of time as defined in the EIP.
Each source-specific trading order expires five years from the
issuance date. This allows Connecticut to determine every five years if
emission trading is still the best mechanism for reducing
NOX emissions at an individual source. Issuing new trading
orders every five years also allows the
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State to take into account any new CAA requirements that become
effective after the initial trading order was issued.
On an annual basis, sources must report to Connecticut all ERCs
generated and used. The State reviews each credit generated and assigns
an identification number to each credit. The annual reports allow the
State to determine both the generator and user of each credit. Because
each credit generated receives an individual identification number, the
State can reliably track their use.
B. What is EPA's analysis of the fundamental principle of equity?
The equity principle is composed of two elements--general equity
and environmental justice.
1. Equity Element One--General Equity
General equity means that an EIP ensures all segments of the
population are protected from public health problems and no segment of
the population receives a disproportionate share of a program's
disbenefits. EIPs should specifically protect communities from
disproportionate impacts from emission shifts and foregone emission
reductions.
Connecticut has determined the majority of emission credits are
generated at a few electric generating units and some other large
industrial boilers that have continuous emission monitors. These
sources are large emitters that can economically decrease emissions on
a large scale. However, sources using emission credits are much smaller
emitters of NOX and are spread throughout the State.
Therefore, while the benefit of emissions reductions may be higher in
certain geographic areas, the impact from sources using credits will
not severely impact one geographic area over another.
2. Equity Element Two--Environmental Justice
The environmental justice (EJ) element applies if the EIP covers
VOCs and could disproportionately impact communities populated by
racial minorities, people with low incomes, and/or Tribes. The
Connecticut trading program does not allow emission trading of VOC
credits. Therefore, today's actions allowing the trading of
NOX emission credits does not create an EJ issue.
C. What is EPA's analysis of the fundamental principle of environmental
benefit?
All EIPs must be environmentally beneficial and can demonstrate
this principle through more rapid emission reductions or faster
attainment than would have occurred without the EIP.
The discrete emission reduction credit (DERC) EIP meets the
expectations for the environmental benefit principle. The ability to
generate DERCs provides an incentive for early compliance and more
rapid emission reductions. Connecticut sources that create emission
credits through their respective trading orders must discount the
actual credits generated by 10%. In addition, Connecticut discounts the
credits generated or used at some sources depending on certain
conditions, such as an additional 10% discount rate for sources using
stack tests in lieu of continuous emission monitors. These various
discount rates result in greater emission reductions then would
otherwise be achieved without trading, resulting in an environmental
benefit.
D. What is EPA's analysis regarding the RACT sources?
Sources must use the presumptive RACT limit in the baseline
calculation. Sources are not allowed to use an alternative RACT limit
in determining the baseline emission rate.
Connecticut's trading orders use the lower of actual emissions in
1990 or the RACT emission limit established for the specific source
category, whichever is less. The source-specific trading orders do not
use an alternative RACT emission rate.
The EIP Guidance also contains guidance for RACT emission limits
with long averaging times and prohibits emission credits generated
outside of the ozone season from being used during the ozone season.
Connecticut's trading orders limit sources requiring credits for
excess emissions during ozone season to only use credits generated
during ozone season.
E. Conclusion
EPA reviewed the source-specific trading orders with respect to the
expectations of the EIP Guidance and the requirements of the Clean Air
Act. EPA has concluded after review and analysis of the source-specific
trading orders that they are approvable.
VI. Proposed Action
EPA is proposing to approve the Connecticut SIP revision for the
NOX trading orders, which were submitted on August 18, 2000,
December 12, 2002, July 1, 2004, and January 13, 2006. EPA is
soliciting public comments on the issues discussed in this notice or on
other relevant matters. These comments will be considered before taking
final action. Interested parties may participate in the Federal
rulemaking procedure by submitting written comments to the EPA New
England Regional Office listed in the ADDRESSES section of this Federal
Register.
The Agency has reviewed this request for revision of the Federally-
approved State implementation plan for conformance with the provisions
of the 1990 amendments enacted on November 15, 1990. The Agency has
made the determination that the SIP revision is approvable because it
is in accordance with the CAA and EPA regulations.
VII. Statutory and Executive Order Reviews
Under the Clean Air Act, the Administrator is required to approve a
SIP submission that complies with the provisions of the Act and
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a).
Thus, in reviewing SIP submissions, EPA's role is to approve state
choices, provided that they meet the criteria of the Clean Air Act.
Accordingly, this proposed action merely approves state law as meeting
Federal requirements and does not impose additional requirements beyond
those imposed by state law. For that reason, this proposed action:
Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Order
12866 (58 FR 51735, October 4, 1993);
Does not impose an information collection burden under the
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
Is certified as not having a significant economic impact
on a substantial number of small entities under the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.);
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);
Does not have Federalism implications as specified in
Executive Order 13132 (64 FR 43255, August 10, 1999);
Is not an economically significant regulatory action based
on health or safety risks subject to Executive Order 13045 (62 FR
19885, April 23, 1997);
Is not a significant regulatory action subject to
Executive Order 13211 (66 FR 28355, May 22, 2001);
Is not subject to requirements of Section 12(d) of the
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note) because application of those requirements would
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be inconsistent with the Clean Air Act; and
Does not provide EPA with the discretionary authority to
address, as appropriate, disproportionate human health or environmental
effects, using practicable and legally permissible methods, under
Executive Order 12898 (59 FR 7629, February 16, 1994).
In addition, this rule does not have tribal implications as
specified by Executive Order 13175 (65 FR 67249, November 9, 2000),
because the SIP is not approved to apply in Indian country located in
the state, and EPA notes that it will not impose substantial direct
costs on tribal governments or preempt tribal law.
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Carbon monoxide,
Incorporation by reference, Intergovernmental relations, Nitrogen
dioxide, Reporting and recordkeeping requirements.
Dated: November 14, 2012.
H. Curtis Spalding,
Regional Administrator, EPA New England.
[FR Doc. 2012-28908 Filed 11-28-12; 8:45 am]
BILLING CODE 6560-50-P
