Approval and Promulgation of Air Quality Implementation Plans; Virginia; Removal of Clean Air Interstate Rule (CAIR) Trading Programs, 10791-10796 [2018-04935]
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B. Submission to Congress and the
Comptroller General
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this action and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2).
Court of Appeals for the appropriate
circuit by May 14, 2018. Filing a
petition for reconsideration by the
Administrator of this final rule does not
affect the finality of this action for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action. This action
updating the definition of VOC in the
Virginia SIP by removing the
recordkeeping, emissions reporting,
photochemical dispersion modeling,
and inventory requirements related to
the use of TBAC as a VOC and adding
HFE-347pcf2 to the list of compounds
excluded from the regulatory definition
of VOC may not be challenged later in
proceedings to enforce its requirements.
(See section 307(b)(2).)
C. Petitions for Judicial Review
Under section 307(b)(1) of the CAA,
petitions for judicial review of this
action must be filed in the United States
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Ozone, Reporting and recordkeeping
List of Subjects in 40 CFR Part 52
requirements, Volatile organic
compounds.
Dated: February 26, 2018.
Cosmo Servidio,
Regional Administrator, Region III.
40 CFR part 52 is amended as follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
1. The authority citation for part 52
continues to read as follows:
■
Authority: 42 U.S.C. 7401 et seq.
Subpart VV—Virginia
2. In § 52.2420, the table in paragraph
(c) is amended by adding two entries for
‘‘Section 5–10–20’’ after the entry for
‘‘Section 5–10–20’’ (with the State
effective date of 7/30/15) to read as
follows:
■
§ 52.2420
*
Identification of plan.
*
*
(c) * * *
*
*
EPA–APPROVED VIRGINIA REGULATIONS AND STATUTES
State citation
State effective
date
Title/subject
Explanation
[former SIP citation]
EPA approval date
9 VAC 5, Chapter 10 General Definitions [Part I]
*
5–10–20 ..............
*
Terms Defined ................
5–10–20 ..............
Terms Defined ................
*
*
*
*
*
*
*
12/15/16
5/19/17
*
3/13/18, [Insert Federal
Register citation].
3/13/18, [Insert Federal
Register citation].
*
*
*
ACTION:
*
*
*
Definition of ‘‘volatile organic compound’’ is revised
by removing the recordkeeping, emissions reporting, photochemical dispersion modeling, and
inventory requirements related to the use of tbutyl acetate (also known as tertiary butyl acetate or TBAC) as a VOC.
Definition of ‘‘volatile organic compound’’ is revised
by
adding
1,1,2,2,-Tetrafluoro-1-(2,2,2trifluoroethoxy) ethane (also known as HFE347pcf2) to the list of compounds excluded from
the regulatory definition of VOC.
*
Final rule.
[FR Doc. 2018–04937 Filed 3–12–18; 8:45 am]
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 52
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[EPA–R03–OAR–2017–0215; FRL–9975–32–
Region 3]
Approval and Promulgation of Air
Quality Implementation Plans; Virginia;
Removal of Clean Air Interstate Rule
(CAIR) Trading Programs
Environmental Protection
Agency (EPA).
AGENCY:
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The Environmental Protection
Agency (EPA) is approving a state
implementation plan (SIP) revision
submitted by the Commonwealth of
Virginia (Virginia). The revision
requests EPA remove from the Virginia
SIP regulations from the Virginia
Administrative Code that established
trading programs under the Clean Air
Interstate Rule (CAIR). The EPAadministered trading programs under
CAIR were discontinued on December
31, 2014, upon the implementation of
the Cross-State Air Pollution Rule
(CSAPR), which was promulgated by
EPA to replace CAIR. CSAPR
SUMMARY:
BILLING CODE 6560–50–P
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*
*
established federal trading programs for
sources in multiple states, including
Virginia, that replace the CAIR state and
federal trading programs. The submitted
SIP revision requests removal of state
regulations that implemented the CAIR
annual nitrogen oxides (NOX), ozone
season NOX, and annual sulfur dioxide
(SO2) trading programs from the
Virginia SIP (as CSAPR has replaced
CAIR). EPA is approving the SIP
revision in accordance with the
requirements of the Clean Air Act
(CAA).
DATES: This final rule is effective on
April 12, 2018.
ADDRESSES: EPA has established a
docket for this action under Docket ID
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Number EPA–R03–OAR–2017–0215. All
documents in the docket are listed on
the https://www.regulations.gov website.
Although listed in the index, some
information is not publicly available,
e.g., confidential business information
(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 through https://
www.regulations.gov, or please contact
the person identified in the FOR FURTHER
INFORMATION CONTACT section for
additional availability information.
FOR FURTHER INFORMATION CONTACT: Sara
Calcinore, (215) 814–2043, or by email
at calcinore.sara@epa.gov.
SUPPLEMENTARY INFORMATION:
I. Background
In 2005, EPA promulgated CAIR (70
FR 25162, May 12, 2005) to address
transported emissions that significantly
contributed to downwind states’
nonattainment and interfered with
maintenance of the 1997 ozone and fine
particulate matter (PM2.5) national
ambient air quality standards (NAAQS).
CAIR required 28 states, including
Virginia, to revise their SIPs to reduce
emissions of NOX and SO2, precursors
to the formation of ambient ozone and
PM2.5. Under CAIR, EPA provided
model state rules for separate cap-andtrade programs for annual NOX, ozone
season NOX, and annual SO2. The
annual NOX and annual SO2 trading
programs were designed to address
transported PM2.5 pollution, while the
ozone season NOX trading program was
designed to address transported ozone
pollution. EPA also promulgated CAIR
federal implementation plans (FIPs)
with CAIR federal trading programs that
would address each state’s CAIR
requirements in the event that a CAIR
SIP for the state was not submitted or
approved (71 FR 25328, April 28, 2006).
Generally, both the model state rules
and the federal trading program rules
applied only to electric generating units
(EGUs), but in the case of the model
state rule and federal trading program
for ozone season NOX emissions, each
state had the option to submit a CAIR
SIP revision that expanded applicability
to include certain non-EGUs 1 that
formerly participated in the NOX Budget
Trading Program under the NOX SIP
1 These
non-EGUs are generally defined in the
NOX SIP Call as stationary, fossil fuel-fired boilers,
combustion turbines, or combined cycle systems
with a maximum design heat input greater than 250
million British thermal units per hour (MMBtu/hr).
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Call.2 Virginia submitted, and EPA
approved, a CAIR SIP revision based on
the model state rules establishing CAIR
state trading programs for annual SO2,
annual NOX, and ozone season NOX
emissions, with certain non-EGUs
included in the state’s CAIR ozone
season NOX trading program. See 72 FR
73602 (December 28, 2007). Because
Virginia’s NOX ozone season trading
program under CAIR included nonEGUs that previously participated in the
NOX budget trading program under the
NOX SIP Call, this CAIR program
satisfied Virginia’s obligations under the
NOX SIP Call as to both EGUs and nonEGUs. However, even though the NOX
SIP Call requirements were being met by
the CAIR program, Virginia’s state NOX
Budget Trading Program rule also
remains part of the state’s approved SIP.
See 76 FR 68638 (November 7, 2011).
The United States Court of Appeals
for the District of Columbia Circuit (D.C.
Circuit) initially vacated CAIR in 2008,
but ultimately remanded the rule to EPA
without vacatur to preserve the
environmental benefits provided by
CAIR. North Carolina v. EPA, 531 F.3d
896, modified, 550 F.3d 1176 (2008).
The ruling allowed CAIR to remain in
effect temporarily until a replacement
rule consistent with the court’s opinion
was developed. While EPA worked on
developing a replacement rule, the CAIR
program continued as planned with the
NOX annual and ozone season programs
beginning in 2009 and the SO2 annual
program beginning in 2010.
On August 8, 2011 (76 FR 48208),
acting on the D.C. Circuit’s remand, EPA
promulgated CSAPR to replace CAIR in
order to address the interstate transport
of emissions contributing to
nonattainment and interfering with
maintenance of the two air quality
standards covered by CAIR as well as
the 2006 PM2.5 NAAQS. CSAPR
required EGUs in affected states,
including Virginia, to participate in
federal trading programs to reduce
annual SO2, annual NOX, and/or ozone
season NOX emissions. The rule also
contained provisions that would sunset
CAIR-related obligations on a schedule
coordinated with the implementation of
the CSAPR compliance requirements.
CSAPR was intended to become
effective January 1, 2012; however, the
timing of CSAPR’s implementation was
impacted by a number of court actions.
Numerous parties filed petitions for
review of CSAPR in the D.C. Circuit,
2 In October 1998, EPA finalized the ‘‘Finding of
Significant Contribution and Rulemaking for
Certain States in the Ozone Transport Assessment
Group Region for Purposes of Reducing Regional
Transport of Ozone’’—commonly called the NOX
SIP Call. See 63 FR 57356 (October 27, 1998).
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and on December 30, 2011, the D.C.
Circuit stayed CSAPR prior to its
implementation and ordered EPA to
continue administering CAIR on an
interim basis. On August 21, 2012, the
D.C. Circuit issued its ruling, vacating
and remanding CSAPR to EPA and
ordering continued implementation of
CAIR. EME Homer City Generation, L.P.
v. EPA, 696 F.3d 7, 38 (D.C. Cir. 2012).
The D.C. Circuit’s vacatur of CSAPR
was reversed by the United States
Supreme Court on April 29, 2014, and
the case was remanded to the D.C.
Circuit to resolve remaining issues in
accordance with the Supreme Court’s
ruling. EPA v. EME Homer City
Generation, L.P., 134 S. Ct. 1584 (2014).
On remand, the D.C. Circuit affirmed
CSAPR in most respects but remanded
certain state emissions budgets,
including Virginia’s Phase 2 budget for
ozone season NOX emissions. EME
Homer City Generation, L.P. v. EPA
(EME Homer City II), 795 F.3d 118, 138
(D.C. Cir. 2015).
Throughout the initial round of D.C.
Circuit proceedings and the ensuing
Supreme Court proceedings, the stay on
CSAPR remained in place, and EPA
continued to implement CAIR.
Following the April 2014 Supreme
Court decision, EPA filed a motion
asking the D.C. Circuit to lift the stay in
order to allow CSAPR to replace CAIR
in an equitable and orderly manner
while further D.C. Circuit proceedings
were held to resolve remaining claims
from petitioners. Additionally, EPA’s
motion requested delay, by three years,
of all CSAPR compliance deadlines that
had not passed as of the approval date
of the stay. On October 23, 2014, the
D.C. Circuit granted EPA’s request, and
on December 3, 2014 (79 FR 71663), in
an interim final rule, EPA set the
updated effective date of CSAPR as
January 1, 2015, and delayed the
implementation of CSAPR Phase I to
2015 and CSAPR Phase 2 to 2017. In
accordance with the interim final rule,
EPA stopped administering the CAIR
state and federal trading programs with
respect to emissions occurring after
December 31, 2014, and EPA began
implementing CSAPR on January 1,
2015.3
In October 2016, EPA promulgated
the CSAPR Update (81 FR 74504,
October 26, 2016) to address interstate
transport of ozone pollution with
respect to the 2008 ozone NAAQS, and
issued FIPs that established or updated
ozone season NOX budgets for 22 states,
3 EPA solicited comment on the interim final rule
and subsequently issued a final rule affirming the
amended compliance schedule after consideration
of comments received. 81 FR 13275 (March 14,
2016).
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including Virginia. Starting in January
2017, the CSAPR Update budgets were
implemented via modifications to the
CSAPR NOX ozone season allowance
trading program that was established
under the original CSAPR.
As noted above, starting in January
2015, the CSAPR federal trading
programs for annual NOX, ozone season
NOX, and annual SO2 were applicable in
Virginia. Thus, since January 1, 2015,
EPA has not administered the CAIR
state trading programs for annual NOX,
ozone season NOX, or annual SO2
emissions established by the Virginia
regulations.
On January 5, 2017, the
Commonwealth of Virginia, through the
Virginia Department of Environmental
Quality (VADEQ), formally submitted a
SIP revision (Revision D16) that
requests removal from its SIP of Virginia
Administrative Code regulations
including 9 VAC 5 Chapter 140: Part
II—NOX Annual Trading Program; Part
III—NOX Ozone Season Trading
Program; and Part IV—SO2 Annual
Trading Program (Sections 5–140–1010
through 5–140–3880), which
implemented the CAIR annual NOX,
ozone season NOX, and annual SO2
trading programs in Virginia.4
On September 28, 2017, EPA
simultaneously published a notice of
proposed rulemaking (NPR) (82 FR
45241) and a direct final rule (DFR) (82
FR 45187) for Virginia approving, as a
SIP revision, the removal of the
regulations under 9 VAC 5 Chapter 140:
Part II—NOX Annual Trading Program;
Part III—NOX Ozone Season Trading
Program; and Part IV—SO2 Annual
Trading Program (Sections 5–140–1010
through 5–140–3880), which
implemented the CAIR annual NOX,
ozone season NOX, and annual SO2
trading programs in Virginia, from the
Virginia SIP. EPA received adverse
comments on the rulemaking and
withdrew the DFR prior to the effective
date of November 27, 2017. See 82 FR
55052 (November 20, 2017). In the NPR,
EPA had proposed to approve the SIP
revision, which would remove from the
Virginia SIP the regulations under 9
VAC 5 Chapter 140 that implemented
the CAIR annual NOX, ozone season
NOX, and annual SO2 trading programs.
In this final rulemaking, EPA is
4 EPA notes that Virginia’s January 5, 2017 SIP
revision does not request removal of the regulations
under 9 VAC 5 Chapter 140: Part I—NOX Budget
Trading Program, which include regulations
addressing the continuous emission monitoring
requirements of 40 CFR part 75 for non-EGUs
covered by the NOX SIP Call (Part 75 rule).
Therefore, this rulemaking action does not apply to
regulations under 9 VAC 5 Chapter 140: Part I—
NOX Budget Trading Program, including those
related to the part 75 rule.
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responding to the comments submitted
on the proposed revision to the Virginia
SIP and is approving, as a SIP revision,
the removal of these regulations from
the Virginia SIP.
II. Summary of SIP Revision and EPA
Analysis
VADEQ’s January 5, 2017 SIP revision
requests the removal of regulations from
the Virginia SIP under 9 VAC 5 Chapter
140: Part II—NOX Annual Trading
Program, Part III—NOX Ozone Season
Trading Program, and Part IV—SO2
Annual Trading Program (Sections 5–
140–1010 through 5–140–3880), which
implemented the state’s CAIR annual
NOX, ozone season NOX, and annual
SO2 trading programs. EPA has not
administered the trading programs
established by these regulations since
January 1, 2015, when the CSAPR
trading programs replaced the CAIR
programs, and the state CAIR
regulations have been repealed in their
entirety from the Virginia
Administrative Code. The amendments
removing these regulations were
adopted by the State Air Pollution
Control Board on September 9, 2016,
and were effective as of November 16,
2016.
As noted previously, the CAIR annual
NOX, ozone season NOX, and annual
SO2 trading programs addressed
interstate transport of emissions under
the 1997 PM2.5 NAAQS and the 1997
ozone NAAQS. The D.C. Circuit
remanded CAIR to EPA for replacement,
and in response EPA promulgated
CSAPR which, among other things, fully
addresses Virginia’s interstate transport
obligation under the 1997 PM2.5
NAAQS. See 76 FR at 48210. EPA
stopped administering the CAIR trading
programs after 2014 and instead began
implementing the CSAPR trading
programs in 2015. EPA had also
determined that CSAPR would fully
address Virginia’s interstate transport
obligation under the 1997 ozone
NAAQS, id., but the D.C. Circuit later
remanded Virginia’s CSAPR Phase 2
budget for ozone season NOX, finding
that the CSAPR rulemaking record did
not support EPA’s determination of a
transport obligation under the 1997
ozone NAAQS for Virginia in CSAPR
Phase 2, EME Homer City II, 795 F.3d
at 129–30, and in response to the
Court’s decision EPA withdrew
Virginia’s remanded budget.5 Thus,
none of Virginia’s three CAIR state rules
still plays any role in addressing the
5 The replacement ozone season NO budget
X
established for Virginia in the CSAPR Update
addresses (in part) the state’s transport obligation
under the 2008 ozone NAAQS rather than the 1997
ozone NAAQS.
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10793
transport obligations that the state
initially adopted the rules to address:
The CAIR trading programs are no
longer being administered; the state’s
transport obligation under the 1997
PM2.5 NAAQS is now being addressed
by the CSAPR trading programs for
annual NOX and SO2; and the state no
longer has a transport obligation under
the 1997 ozone NAAQS.
Virginia’s CAIR trading programs for
annual NOX and SO2 were adopted only
to address Virginia’s transport
obligation under the 1997 PM2.5
NAAQS, one of the two NAAQS
underlying EPA’s CAIR rules. In
contrast, Virginia’s CAIR trading
program for ozone season NOX was
adopted to address not only Virginia’s
transport obligation under the 1997
ozone NAAQS (the other NAAQS
underlying EPA’s CAIR rules), but also
Virginia’s ongoing obligations under the
NOX SIP Call.6 Specifically, under the
NOX SIP Call the Virginia SIP, first,
must include enforceable control
measures for large EGUs and large nonEGUs and, second, must require those
sources to monitor and report ozone
season NOX emissions in accordance
with 40 CFR part 75. See 40 CFR
51.121(f)(2) and (i)(4). Virginia’s EGUs
are currently subject to requirements
under the federal CSAPR trading
program for ozone season NOX that
address the purpose of these NOX SIP
Call requirements as to EGUs, but
because Virginia’s non-EGUs are not
subject to that CSAPR trading program,
the state must meet these requirements
for non-EGUs through other SIP
provisions.
With respect to the NOX SIP Call
requirement for the SIP to include part
75 monitoring requirements, Virginia’s
SIP still includes the state’s NOX Budget
Trading Program rules, and those rules
continue to require non-EGUs to
monitor and report ozone season NOX
emissions under part 75 even though
EPA is no longer administering the
trading program provisions of the state’s
rules. Thus, removal of the state’s CAIR
rules for ozone season NOX emissions
from Virginia’s SIP will not eliminate
the required SIP provisions for part 75
monitoring by non-EGUs under the NOX
SIP Call because the SIP will still
include the equivalent provisions in the
state’s NOX Budget Trading Program
rules.
With respect to the NOX SIP Call
requirement for the SIP to include
enforceable control measures for nonEGUs, Virginia formerly met the
requirement by including these sources
6 The NO SIP Call addresses states’ transport
X
obligations under the 1979 ozone NAAQS.
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in the state’s CAIR trading program for
ozone season NOX emissions. When
EPA initially replaced the CAIR trading
programs with the CSAPR trading
programs in 2015, the CSAPR
regulations did not provide an option
for states to expand trading program
applicability to include these non-EGUs.
In the CSAPR Update, EPA restored the
option to include these EGUs in the
current CSAPR trading program for
ozone season NOX starting in 2019, but
Virginia has not elected this option.
Accordingly, since January 1, 2015,
when the CSAPR federal trading
program became effective in Virginia
and EPA stopped administering the
CAIR trading programs, the Virginia SIP
has not contained an effective regulation
addressing the NOX SIP Call
requirement for enforceable control
measures for non-EGUs that formerly
participated in the state’s NOX Budget
Trading Program. However, Virginia’s
request in its January 5, 2017 SIP
seeking removal from its SIP of 9 VAC
5 Chapter 140: Part III—NOX Ozone
Season Trading Program and EPA’s
action to approve the January 5, 2017
submittal did not create this gap in
coverage under the Virginia SIP. Rather,
as described above, the gap predates the
SIP submittal at issue in this action, and
approval of the SIP submittal will not
exacerbate or otherwise affect the gap.
According to Virginia, the
Commonwealth is in the process of
drafting a regulation to address the
Commonwealth’s obligations under the
NOX SIP Call (including its obligation to
address these non-EGUs which formerly
participated in the state’s CAIR trading
program for ozone season NOX
emissions). In remedying its provisions
to address the NOX SIP Call, Virginia
must satisfy the requirements of 40 CFR
51.121(f)(2) for the SIP to include
enforceable control measures for nonEGUs that are stationary, fossil fuel-fired
boilers, combustion turbines, or
combined cycle systems with a
maximum design heat input greater than
250 MMBtu/hr. EPA expects Virginia
will submit such provisions to EPA to
be included in Virginia’s SIP, and EPA
will review and act on any such SIP
submittal from Virginia addressing the
Commonwealth’s NOX SIP Call
obligations in a separate rulemaking.
In summary, Virginia’s CAIR rules at
9 VAC 5, Chapter 140: Part II–NOX
Annual Trading Program, Part III—NOX
Ozone Season Trading Program, and
Part IV—SO2 Annual Trading Program
(sections 5–140–1010 through 5–140–
3880) no longer play any role in
addressing the transport obligations that
the rules were adopted to address, and
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removal of the rules from the SIP will
not introduce any new gaps with respect
to the additional purposes that the rules
served with respect to addressing the
state’s ongoing obligations under the
NOX SIP Call. EPA therefore finds
Virginia’s January 5, 2017 SIP revision
requesting removal of these CAIR rules
from the SIP approvable in accordance
with section 110 of the CAA. The public
comments received on the NPR are
discussed in Section III of this
rulemaking action.
III. Public Comments and EPA’s
Response
EPA received two public comments
on our September 28, 2017 action to
approve Virginia’s January 5, 2017 SIP
submittal that requests the removal of
the regulations under 9 VAC 5 Chapter
140: Part II—NOX Annual Trading
Program; Part III—NOX Ozone Season
Trading Program; and Part IV—SO2
Annual Trading Program (Sections 5–
140–1010 through 5–140–3880), which
implemented the state’s CAIR annual
NOX, ozone season NOX, and annual
SO2 trading programs, from the Virginia
SIP. The comment submitted on October
7, 2017 was not specific to this
rulemaking action and will not be
addressed here.
Comment: The commenter stated that
‘‘EPA needs to ensure that the NOX SIP
call sources’’ are addressed in the
Virginia SIP. The commenter also
requested that EPA not remove CAIR in
Virginia, citing its public health
benefits.
EPA Response to Comment: As
discussed in Section II, the CAIR trading
programs are no longer being
administered, and for that reason
removing Virginia’s CAIR rules from the
state’s SIP will have no consequences
for any source’s operations or emissions
or for public health. EPA also notes that
removal of the state’s CAIR rules from
the state’s SIP does not eliminate
requirements for the state’s EGUs and
non-EGUs to monitor and report their
ozone season NOX emissions in
accordance with 40 CFR part 75 as
required under the NOX SIP Call. The
EGUs continue to be subject to part 75
requirements under the current CSAPR
trading program rules, and the nonEGUs continue to be subject to part 75
requirements under the state’s NOX
Budget Trading Program rules, which
are still included in the state’s SIP.
EPA agrees that under the NOX SIP
Call, the Virginia SIP must include
enforceable control measures for ozone
season NOX emissions from non-EGUs,
such as stationary, fossil fuel-fired
boilers, combustion turbines, or
combined cycle systems with a
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maximum design heat input greater than
250 MMBtu/hr, that formerly
participated in the state’s NOX SIP Call
trading program and CAIR trading
program for ozone season NOX
emission. This requirement for the SIP
to include enforceable control measures
was formerly met by the SIP provisions
requiring these sources to participate in
the state’s NOX Budget Trading Program
and then the state’s CAIR trading
program for ozone season NOX
emissions. However, since 2015, when
EPA began implementing the CSAPR
trading programs and stopped
administering the CAIR trading
programs in response to the D.C.
Circuit’s remand of CAIR, Virginia’s SIP
has not included enforceable control
measures for NOX emissions from these
non-EGUs. This gap in SIP coverage was
caused by the discontinuation of the
CAIR trading programs and predates the
SIP submittal at issue in this action.
Removing the state’s CAIR rules from
the SIP at this time will not exacerbate
or otherwise affect this pre-existing lack
of enforceable control measures in the
SIP. As stated above in Section II,
according to Virginia, the
Commonwealth is in the process of
drafting a regulation to address the
Commonwealth’s obligation under the
NOX SIP Call with respect to NOX
emissions from these non-EGUs, which
includes the requirement for enforceable
control measures. EPA expects Virginia
will submit such provisions to EPA to
be included in Virginia’s SIP, and EPA
will review and act on any such SIP
submittal from Virginia addressing the
Commonwealth’s NOX SIP Call
obligations in a separate rulemaking.
IV. Final Action
EPA is approving the Virginia SIP
revision submitted on January 5, 2017
that sought removal from the Virginia
SIP of regulations under 9 VAC 5
Chapter 140: Part II—NOX Annual
Trading Program; Part III—NOX Ozone
Season Trading Program; and Part IV—
SO2 Annual Trading Program (Sections
5–140–1010 through 5–140–3880),
which implemented the state’s CAIR
annual NOX, ozone season NOX, and
annual SO2 trading programs. Removal
of these regulations from the Virginia
SIP is in accordance with section 110 of
the CAA. This rule, which responds to
the adverse comments received,
finalizes our proposed approval of
Virginia’s January 5, 2017 SIP submittal.
V. General Information Pertaining to
SIP Submittals From the
Commonwealth of Virginia
In 1995, Virginia adopted legislation
that provides, subject to certain
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conditions, for an environmental
assessment (audit) ‘‘privilege’’ for
voluntary compliance evaluations
performed by a regulated entity. The
legislation further addresses the relative
burden of proof for parties either
asserting the privilege or seeking
disclosure of documents for which the
privilege is claimed. Virginia’s
legislation also provides, subject to
certain conditions, for a penalty waiver
for violations of environmental laws
when a regulated entity discovers such
violations pursuant to a voluntary
compliance evaluation and voluntarily
discloses such violations to the
Commonwealth and takes prompt and
appropriate measures to remedy the
violations. Virginia’s Voluntary
Environmental Assessment Privilege
Law, Va. Code Sec. 10.1–1198, provides
a privilege that protects from disclosure
documents and information about the
content of those documents that are the
product of a voluntary environmental
assessment. The Privilege Law does not
extend to documents or information
that: (1) Are generated or developed
before the commencement of a
voluntary environmental assessment; (2)
are prepared independently of the
assessment process; (3) demonstrate a
clear, imminent and substantial danger
to the public health or environment; or
(4) are required by law.
On January 12, 1998, the
Commonwealth of Virginia Office of the
Attorney General provided a legal
opinion that states that the Privilege
law, Va. Code Sec. 10.1–1198, precludes
granting a privilege to documents and
information ‘‘required by law,’’
including documents and information
‘‘required by federal law to maintain
program delegation, authorization or
approval,’’ since Virginia must ‘‘enforce
federally authorized environmental
programs in a manner that is no less
stringent than their federal
counterparts. . . .’’ The opinion
concludes that ‘‘[r]egarding § 10.1–1198,
therefore, documents or other
information needed for civil or criminal
enforcement under one of these
programs could not be privileged
because such documents and
information are essential to pursuing
enforcement in a manner required by
federal law to maintain program
delegation, authorization or approval.’’
Virginia’s Immunity law, Va. Code
Sec. 10.1–1199, provides that ‘‘[t]o the
extent consistent with requirements
imposed by federal law,’’ any person
making a voluntary disclosure of
information to a state agency regarding
a violation of an environmental statute,
regulation, permit, or administrative
order is granted immunity from
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administrative or civil penalty. The
Attorney General’s January 12, 1998
opinion states that the quoted language
renders this statute inapplicable to
enforcement of any federally authorized
programs, since ‘‘no immunity could be
afforded from administrative, civil, or
criminal penalties because granting
such immunity would not be consistent
with federal law, which is one of the
criteria for immunity.’’
Therefore, EPA has determined that
Virginia’s Privilege and Immunity
statutes will not preclude the
Commonwealth from enforcing its
program consistent with the federal
requirements. In any event, because
EPA has also determined that a state
audit privilege and immunity law can
affect only state enforcement and cannot
have any impact on federal enforcement
authorities, EPA may at any time invoke
its authority under the CAA, including,
for example, sections 113, 167, 205, 211
or 213, to enforce the requirements or
prohibitions of the state plan,
independently of any state enforcement
effort. In addition, citizen enforcement
under section 304 of the CAA is
likewise unaffected by this, or any, state
audit privilege or immunity law.
VI. Statutory and Executive Order
Reviews
A. General Requirements
Under the CAA, the Administrator is
required to approve a SIP submission
that complies with the provisions of the
CAA 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 CAA. Accordingly, this 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 action:
• Is not a ‘‘significant regulatory
action’’ subject to review by the Office
of Management and Budget under
Executive Orders 12866 (58 FR 51735,
October 4, 1993) and 13563 (76 FR 3821,
January 21, 2011);
• Is not an Executive Order 13771 (82
FR 9339, February 2, 2017) regulatory
action because SIP approvals are
exempted under Executive Order 12866.
• 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.);
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10795
• 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
be inconsistent with the CAA; 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).
The SIP is not approved to apply on
any Indian reservation land as defined
in 18 U.S.C. 1151 or in any other area
where EPA or an Indian tribe has
demonstrated that a tribe has
jurisdiction. In those areas of Indian
country, the rule does not have tribal
implications and will not impose
substantial direct costs on tribal
governments or preempt tribal law as
specified by Executive Order 13175 (65
FR 67249, November 9, 2000).
B. Submission to Congress and the
Comptroller General
The Congressional Review Act, 5
U.S.C. 801 et seq., as added by the Small
Business Regulatory Enforcement
Fairness Act of 1996, generally provides
that before a rule may take effect, the
agency promulgating the rule must
submit a rule report, which includes a
copy of the rule, to each House of the
Congress and to the Comptroller General
of the United States. EPA will submit a
report containing this action and other
required information to the U.S. Senate,
the U.S. House of Representatives, and
the Comptroller General of the United
States prior to publication of the rule in
the Federal Register. A major rule
cannot take effect until 60 days after it
is published in the Federal Register.
This action is not a ‘‘major rule’’ as
defined by 5 U.S.C. 804(2).
C. Petitions for Judicial Review
Under section 307(b)(1) of the CAA,
petitions for judicial review of this
action must be filed in the United States
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Federal Register / Vol. 83, No. 49 / Tuesday, March 13, 2018 / Rules and Regulations
Court of Appeals for the appropriate
circuit by May 14, 2018. Filing a
petition for reconsideration by the
Administrator of this final rule does not
affect the finality of this action for the
purposes of judicial review nor does it
extend the time within which a petition
for judicial review may be filed, and
shall not postpone the effectiveness of
such rule or action.
This action removing from the
Virginia SIP regulations under Sections
5–140–1010 through 5–140–3880 of 9
VAC 5 Chapter 140 that implemented
the CAIR annual NOX, ozone season
NOX, and annual SO2 trading programs
may not be challenged later in
proceedings to enforce its requirements.
(See CAA section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air
pollution control, Incorporation by
reference, Intergovernmental relations,
Nitrogen dioxide, Ozone, Particulate
matter, Reporting and recordkeeping
requirements, Sulfur oxides, Volatile
organic compounds.
Dated: February 23, 2018.
Cosmo Servidio,
Regional Administrator, Region III.
40 CFR part 52 is amended as follows:
PART 52—APPROVAL AND
PROMULGATION OF
IMPLEMENTATION PLANS
1. The authority citation for part 52
continues to read as follows:
■
Authority: 42 U.S.C. 7401 et seq.
Subpart VV—Virginia
§ 52.2420
[Amended]
2. In § 52.2420, the table in paragraph
(c) is amended by:
■ a. Removing the table heading ‘‘Part
II—NOX Annual Trading Program’’; the
table subheading ‘‘Article 1 CAIR NOX
Annual Trading Program General
Provisions’’ and the entries ‘‘5–140–
1010’’ through ‘‘5–140–1080’’; the table
subheading ‘‘Article 2 CAIR-designated
Representative for CAIR NOX Sources’’
and the entries ‘‘5–140–1100’’ through
‘‘5–140–1150’’; the table subheading
‘‘Article 3 Permits’’ and the entries ‘‘5–
140–1200’’ through ‘‘5–140–1240’’; the
table subheading ‘‘Article 5 CAIR NOX
Allowance Allocations’’ and the entries
‘‘5–140–1400’’ through ‘‘5–140–1430’’;
the table subheading ‘‘Article 6 CAIR
NOX Allowance Tracking System’’ and
the entries ‘‘5–140–1510’’ through ‘‘5–
140–1570’’; the table subheading
‘‘Article 7 CAIR NOX Allowance
Transfers’’ and the entries ‘‘5–140–
1600’’ through ‘‘5–140–1620’’; the table
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■
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subheading ‘‘Article 8 Monitoring and
Reporting’’ and the entries ‘‘5–140–
1700’’ through ‘‘5–140–1750’’; the table
subheading ‘‘Article 9 CAIR NOX Opt-in
Units’’ and the entries ‘‘5–140–1800’’
through ‘‘5–140–1880’’.
■ b. Removing the table heading ‘‘Part
III NOX Ozone Season Trading
Program’’; the table subheading ‘‘Article
1 CAIR NOX Ozone Season Trading
Program General Provisions’’ and the
entries ‘‘5–140–2010’’ through ‘‘5–140–
2080’’; the table subheading ‘‘Article 2
CAIR-Designated Representative for
CAIR NOX Ozone Season Sources’’ and
the entries ‘‘5–140–2100’’ through ‘‘5–
140–2150’’; the table subheading
‘‘Article 3 Permits’’ and the entries ‘‘5–
140–2200’’ through ‘‘5–140–2240’’; the
table subheading ‘‘Article 5 CAIR NOX
Ozone Season Allowance Allocations’’
and the entries ‘‘5–140–2400’’ through
‘‘5–140–2430’’; the table subheading
‘‘Article 6 CAIR NOX Ozone Season
Allowance Tracking System’’ and the
entries ‘‘5–140–2510’’ through ‘‘5–140–
2570’’; the table subheading ‘‘Article 7
CAIR NOX Ozone Season Allowance
Transfers’’ and the entries ‘‘5–140–
2600’’ through ‘‘5–140–2620’’; the table
subheading ‘‘Article 8 Monitoring and
Reporting’’ and the entries ‘‘5–140–
2700’’ through ‘‘5–140–2750’’; the table
subheading ‘‘Article 9 CAIR NOX Ozone
Season Opt-in Units’’ and the entries
‘‘5–140–2800’’ through ‘‘5–140–2880’’.
■ c. Removing the table heading ‘‘Part
IV—SO2 Annual Trading Program’’; the
table subheading ‘‘Article 1 CAIR SO2
Trading Program General Provisions’’
and the entries ‘‘5–140–3010’’ through
‘‘5–140–3080’’; the table subheading
‘‘Article 2 CAIR-designated
Representative for CAIR SO2 Sources’’
and the entries ‘‘5–140–3100’’ through
‘‘5–140–3150’’; the table subheading
‘‘Article 3 Permits’’ and the entries ‘‘5–
140–3200’’ through ‘‘5–140–3240’’; the
table subheading ‘‘Article 5 CAIR SO2
Allowance Allocations’’ and the entries
‘‘5–140–3400’’ through ‘‘5–140–3420’’;
the table subheading ‘‘Article 6 CAIR
SO2 Allowance Tracking System’’ and
the entries ‘‘5–140–3510’’ through ‘‘5–
140–3570’’; the table subheading
‘‘Article 7 CAIR SO2 Allowance
Transfers’’ and the entries ‘‘5–140–
3600’’ through ‘‘5–140–3620’’; the table
subheading ‘‘Article 8 Monitoring and
Reporting’’ and the entries ‘‘5–140–
3700’’ through ‘‘5–140–3750’’; the table
subheading ‘‘Article 9 CAIR SO2 Opt-in
Units’’ and the entries ‘‘5–140–3800’’
through ‘‘5–140–3880’’.
[FR Doc. 2018–04935 Filed 3–12–18; 8:45 am]
BILLING CODE 6560–50–P
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ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 52 and 81
[EPA–R05–OAR–2017–0256; FRL–9975–46–
Region 5]
Air Plan Approval; Ohio;
Redesignation of the Delta, Ohio Area
to Attainment of the 2008 Lead
Standard
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
The Environmental Protection
Agency (EPA) is approving the State of
Ohio’s request to redesignate the portion
of Fulton County, Ohio known as the
Delta nonattainment area (Delta area) to
attainment of the 2008 National
Ambient Air Quality Standards
(NAAQS or standard) for lead. EPA is
also approving, as meeting Clean Air
Act (CAA) requirements, the
maintenance plan and related elements
of the redesignation, reasonably
available control measure (RACM)/
reasonably available control technology
(RACT) measures and a comprehensive
emissions inventory. EPA is taking these
actions in accordance with the CAA and
EPA’s implementation regulations
regarding the 2008 lead NAAQS.
DATES: This final rule is effective on
March 13, 2018.
ADDRESSES: EPA has established a
docket for this action under Docket ID
No. EPA–R05–OAR–2017–0256. All
documents in the docket are listed on
the www.regulations.gov website.
Although listed in the index, some
information is not publicly available,
i.e., Confidential Business Information
(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 through
www.regulations.gov or at the
Environmental Protection Agency,
Region 5, Air and Radiation Division, 77
West Jackson Boulevard, Chicago,
Illinois 60604. This facility is open from
8:30 a.m. to 4:30 p.m., Monday through
Friday, excluding Federal holidays. We
recommend that you telephone Matt
Rau, Environmental Engineer at (312)
886–6524 before visiting the Region 5
office.
SUMMARY:
Matt
Rau, Environmental Engineer, Control
Strategies Section, Air Programs Branch
(AR–18J), Environmental Protection
FOR FURTHER INFORMATION CONTACT:
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Agencies
[Federal Register Volume 83, Number 49 (Tuesday, March 13, 2018)]
[Rules and Regulations]
[Pages 10791-10796]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-04935]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R03-OAR-2017-0215; FRL-9975-32-Region 3]
Approval and Promulgation of Air Quality Implementation Plans;
Virginia; Removal of Clean Air Interstate Rule (CAIR) Trading Programs
AGENCY: Environmental Protection Agency (EPA).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Environmental Protection Agency (EPA) is approving a state
implementation plan (SIP) revision submitted by the Commonwealth of
Virginia (Virginia). The revision requests EPA remove from the Virginia
SIP regulations from the Virginia Administrative Code that established
trading programs under the Clean Air Interstate Rule (CAIR). The EPA-
administered trading programs under CAIR were discontinued on December
31, 2014, upon the implementation of the Cross-State Air Pollution Rule
(CSAPR), which was promulgated by EPA to replace CAIR. CSAPR
established federal trading programs for sources in multiple states,
including Virginia, that replace the CAIR state and federal trading
programs. The submitted SIP revision requests removal of state
regulations that implemented the CAIR annual nitrogen oxides
(NOX), ozone season NOX, and annual sulfur
dioxide (SO2) trading programs from the Virginia SIP (as
CSAPR has replaced CAIR). EPA is approving the SIP revision in
accordance with the requirements of the Clean Air Act (CAA).
DATES: This final rule is effective on April 12, 2018.
ADDRESSES: EPA has established a docket for this action under Docket ID
[[Page 10792]]
Number EPA-R03-OAR-2017-0215. All documents in the docket are listed on
the https://www.regulations.gov website. Although listed in the index,
some information is not publicly available, e.g., confidential business
information (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 through
https://www.regulations.gov, or please contact the person identified in
the For Further Information Contact section for additional availability
information.
FOR FURTHER INFORMATION CONTACT: Sara Calcinore, (215) 814-2043, or by
email at [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
In 2005, EPA promulgated CAIR (70 FR 25162, May 12, 2005) to
address transported emissions that significantly contributed to
downwind states' nonattainment and interfered with maintenance of the
1997 ozone and fine particulate matter (PM2.5) national
ambient air quality standards (NAAQS). CAIR required 28 states,
including Virginia, to revise their SIPs to reduce emissions of
NOX and SO2, precursors to the formation of
ambient ozone and PM2.5. Under CAIR, EPA provided model
state rules for separate cap-and-trade programs for annual
NOX, ozone season NOX, and annual SO2.
The annual NOX and annual SO2 trading programs
were designed to address transported PM2.5 pollution, while
the ozone season NOX trading program was designed to address
transported ozone pollution. EPA also promulgated CAIR federal
implementation plans (FIPs) with CAIR federal trading programs that
would address each state's CAIR requirements in the event that a CAIR
SIP for the state was not submitted or approved (71 FR 25328, April 28,
2006). Generally, both the model state rules and the federal trading
program rules applied only to electric generating units (EGUs), but in
the case of the model state rule and federal trading program for ozone
season NOX emissions, each state had the option to submit a
CAIR SIP revision that expanded applicability to include certain non-
EGUs \1\ that formerly participated in the NOX Budget
Trading Program under the NOX SIP Call.\2\ Virginia
submitted, and EPA approved, a CAIR SIP revision based on the model
state rules establishing CAIR state trading programs for annual
SO2, annual NOX, and ozone season NOX
emissions, with certain non-EGUs included in the state's CAIR ozone
season NOX trading program. See 72 FR 73602 (December 28,
2007). Because Virginia's NOX ozone season trading program
under CAIR included non-EGUs that previously participated in the
NOX budget trading program under the NOX SIP
Call, this CAIR program satisfied Virginia's obligations under the
NOX SIP Call as to both EGUs and non-EGUs. However, even
though the NOX SIP Call requirements were being met by the
CAIR program, Virginia's state NOX Budget Trading Program
rule also remains part of the state's approved SIP. See 76 FR 68638
(November 7, 2011).
---------------------------------------------------------------------------
\1\ These non-EGUs are generally defined in the NOX
SIP Call as stationary, fossil fuel-fired boilers, combustion
turbines, or combined cycle systems with a maximum design heat input
greater than 250 million British thermal units per hour (MMBtu/hr).
\2\ In October 1998, EPA finalized the ``Finding of Significant
Contribution and Rulemaking for Certain States in the Ozone
Transport Assessment Group Region for Purposes of Reducing Regional
Transport of Ozone''--commonly called the NOX SIP Call.
See 63 FR 57356 (October 27, 1998).
---------------------------------------------------------------------------
The United States Court of Appeals for the District of Columbia
Circuit (D.C. Circuit) initially vacated CAIR in 2008, but ultimately
remanded the rule to EPA without vacatur to preserve the environmental
benefits provided by CAIR. North Carolina v. EPA, 531 F.3d 896,
modified, 550 F.3d 1176 (2008). The ruling allowed CAIR to remain in
effect temporarily until a replacement rule consistent with the court's
opinion was developed. While EPA worked on developing a replacement
rule, the CAIR program continued as planned with the NOX
annual and ozone season programs beginning in 2009 and the
SO2 annual program beginning in 2010.
On August 8, 2011 (76 FR 48208), acting on the D.C. Circuit's
remand, EPA promulgated CSAPR to replace CAIR in order to address the
interstate transport of emissions contributing to nonattainment and
interfering with maintenance of the two air quality standards covered
by CAIR as well as the 2006 PM2.5 NAAQS. CSAPR required EGUs
in affected states, including Virginia, to participate in federal
trading programs to reduce annual SO2, annual
NOX, and/or ozone season NOX emissions. The rule
also contained provisions that would sunset CAIR-related obligations on
a schedule coordinated with the implementation of the CSAPR compliance
requirements. CSAPR was intended to become effective January 1, 2012;
however, the timing of CSAPR's implementation was impacted by a number
of court actions.
Numerous parties filed petitions for review of CSAPR in the D.C.
Circuit, and on December 30, 2011, the D.C. Circuit stayed CSAPR prior
to its implementation and ordered EPA to continue administering CAIR on
an interim basis. On August 21, 2012, the D.C. Circuit issued its
ruling, vacating and remanding CSAPR to EPA and ordering continued
implementation of CAIR. EME Homer City Generation, L.P. v. EPA, 696
F.3d 7, 38 (D.C. Cir. 2012). The D.C. Circuit's vacatur of CSAPR was
reversed by the United States Supreme Court on April 29, 2014, and the
case was remanded to the D.C. Circuit to resolve remaining issues in
accordance with the Supreme Court's ruling. EPA v. EME Homer City
Generation, L.P., 134 S. Ct. 1584 (2014). On remand, the D.C. Circuit
affirmed CSAPR in most respects but remanded certain state emissions
budgets, including Virginia's Phase 2 budget for ozone season
NOX emissions. EME Homer City Generation, L.P. v. EPA (EME
Homer City II), 795 F.3d 118, 138 (D.C. Cir. 2015).
Throughout the initial round of D.C. Circuit proceedings and the
ensuing Supreme Court proceedings, the stay on CSAPR remained in place,
and EPA continued to implement CAIR. Following the April 2014 Supreme
Court decision, EPA filed a motion asking the D.C. Circuit to lift the
stay in order to allow CSAPR to replace CAIR in an equitable and
orderly manner while further D.C. Circuit proceedings were held to
resolve remaining claims from petitioners. Additionally, EPA's motion
requested delay, by three years, of all CSAPR compliance deadlines that
had not passed as of the approval date of the stay. On October 23,
2014, the D.C. Circuit granted EPA's request, and on December 3, 2014
(79 FR 71663), in an interim final rule, EPA set the updated effective
date of CSAPR as January 1, 2015, and delayed the implementation of
CSAPR Phase I to 2015 and CSAPR Phase 2 to 2017. In accordance with the
interim final rule, EPA stopped administering the CAIR state and
federal trading programs with respect to emissions occurring after
December 31, 2014, and EPA began implementing CSAPR on January 1,
2015.\3\
---------------------------------------------------------------------------
\3\ EPA solicited comment on the interim final rule and
subsequently issued a final rule affirming the amended compliance
schedule after consideration of comments received. 81 FR 13275
(March 14, 2016).
---------------------------------------------------------------------------
In October 2016, EPA promulgated the CSAPR Update (81 FR 74504,
October 26, 2016) to address interstate transport of ozone pollution
with respect to the 2008 ozone NAAQS, and issued FIPs that established
or updated ozone season NOX budgets for 22 states,
[[Page 10793]]
including Virginia. Starting in January 2017, the CSAPR Update budgets
were implemented via modifications to the CSAPR NOX ozone
season allowance trading program that was established under the
original CSAPR.
As noted above, starting in January 2015, the CSAPR federal trading
programs for annual NOX, ozone season NOX, and
annual SO2 were applicable in Virginia. Thus, since January
1, 2015, EPA has not administered the CAIR state trading programs for
annual NOX, ozone season NOX, or annual
SO2 emissions established by the Virginia regulations.
On January 5, 2017, the Commonwealth of Virginia, through the
Virginia Department of Environmental Quality (VADEQ), formally
submitted a SIP revision (Revision D16) that requests removal from its
SIP of Virginia Administrative Code regulations including 9 VAC 5
Chapter 140: Part II--NOX Annual Trading Program; Part III--
NOX Ozone Season Trading Program; and Part IV--
SO2 Annual Trading Program (Sections 5-140-1010 through 5-
140-3880), which implemented the CAIR annual NOX, ozone
season NOX, and annual SO2 trading programs in
Virginia.\4\
---------------------------------------------------------------------------
\4\ EPA notes that Virginia's January 5, 2017 SIP revision does
not request removal of the regulations under 9 VAC 5 Chapter 140:
Part I--NOX Budget Trading Program, which include
regulations addressing the continuous emission monitoring
requirements of 40 CFR part 75 for non-EGUs covered by the
NOX SIP Call (Part 75 rule). Therefore, this rulemaking
action does not apply to regulations under 9 VAC 5 Chapter 140: Part
I--NOX Budget Trading Program, including those related to
the part 75 rule.
---------------------------------------------------------------------------
On September 28, 2017, EPA simultaneously published a notice of
proposed rulemaking (NPR) (82 FR 45241) and a direct final rule (DFR)
(82 FR 45187) for Virginia approving, as a SIP revision, the removal of
the regulations under 9 VAC 5 Chapter 140: Part II--NOX
Annual Trading Program; Part III--NOX Ozone Season Trading
Program; and Part IV--SO2 Annual Trading Program (Sections
5-140-1010 through 5-140-3880), which implemented the CAIR annual
NOX, ozone season NOX, and annual SO2
trading programs in Virginia, from the Virginia SIP. EPA received
adverse comments on the rulemaking and withdrew the DFR prior to the
effective date of November 27, 2017. See 82 FR 55052 (November 20,
2017). In the NPR, EPA had proposed to approve the SIP revision, which
would remove from the Virginia SIP the regulations under 9 VAC 5
Chapter 140 that implemented the CAIR annual NOX, ozone
season NOX, and annual SO2 trading programs. In
this final rulemaking, EPA is responding to the comments submitted on
the proposed revision to the Virginia SIP and is approving, as a SIP
revision, the removal of these regulations from the Virginia SIP.
II. Summary of SIP Revision and EPA Analysis
VADEQ's January 5, 2017 SIP revision requests the removal of
regulations from the Virginia SIP under 9 VAC 5 Chapter 140: Part II--
NOX Annual Trading Program, Part III--NOX Ozone
Season Trading Program, and Part IV--SO2 Annual Trading
Program (Sections 5-140-1010 through 5-140-3880), which implemented the
state's CAIR annual NOX, ozone season NOX, and
annual SO2 trading programs. EPA has not administered the
trading programs established by these regulations since January 1,
2015, when the CSAPR trading programs replaced the CAIR programs, and
the state CAIR regulations have been repealed in their entirety from
the Virginia Administrative Code. The amendments removing these
regulations were adopted by the State Air Pollution Control Board on
September 9, 2016, and were effective as of November 16, 2016.
As noted previously, the CAIR annual NOX, ozone season
NOX, and annual SO2 trading programs addressed
interstate transport of emissions under the 1997 PM2.5 NAAQS
and the 1997 ozone NAAQS. The D.C. Circuit remanded CAIR to EPA for
replacement, and in response EPA promulgated CSAPR which, among other
things, fully addresses Virginia's interstate transport obligation
under the 1997 PM2.5 NAAQS. See 76 FR at 48210. EPA stopped
administering the CAIR trading programs after 2014 and instead began
implementing the CSAPR trading programs in 2015. EPA had also
determined that CSAPR would fully address Virginia's interstate
transport obligation under the 1997 ozone NAAQS, id., but the D.C.
Circuit later remanded Virginia's CSAPR Phase 2 budget for ozone season
NOX, finding that the CSAPR rulemaking record did not
support EPA's determination of a transport obligation under the 1997
ozone NAAQS for Virginia in CSAPR Phase 2, EME Homer City II, 795 F.3d
at 129-30, and in response to the Court's decision EPA withdrew
Virginia's remanded budget.\5\ Thus, none of Virginia's three CAIR
state rules still plays any role in addressing the transport
obligations that the state initially adopted the rules to address: The
CAIR trading programs are no longer being administered; the state's
transport obligation under the 1997 PM2.5 NAAQS is now being
addressed by the CSAPR trading programs for annual NOX and
SO2; and the state no longer has a transport obligation
under the 1997 ozone NAAQS.
---------------------------------------------------------------------------
\5\ The replacement ozone season NOX budget
established for Virginia in the CSAPR Update addresses (in part) the
state's transport obligation under the 2008 ozone NAAQS rather than
the 1997 ozone NAAQS.
---------------------------------------------------------------------------
Virginia's CAIR trading programs for annual NOX and
SO2 were adopted only to address Virginia's transport
obligation under the 1997 PM2.5 NAAQS, one of the two NAAQS
underlying EPA's CAIR rules. In contrast, Virginia's CAIR trading
program for ozone season NOX was adopted to address not only
Virginia's transport obligation under the 1997 ozone NAAQS (the other
NAAQS underlying EPA's CAIR rules), but also Virginia's ongoing
obligations under the NOX SIP Call.\6\ Specifically, under
the NOX SIP Call the Virginia SIP, first, must include
enforceable control measures for large EGUs and large non-EGUs and,
second, must require those sources to monitor and report ozone season
NOX emissions in accordance with 40 CFR part 75. See 40 CFR
51.121(f)(2) and (i)(4). Virginia's EGUs are currently subject to
requirements under the federal CSAPR trading program for ozone season
NOX that address the purpose of these NOX SIP
Call requirements as to EGUs, but because Virginia's non-EGUs are not
subject to that CSAPR trading program, the state must meet these
requirements for non-EGUs through other SIP provisions.
---------------------------------------------------------------------------
\6\ The NOX SIP Call addresses states' transport
obligations under the 1979 ozone NAAQS.
---------------------------------------------------------------------------
With respect to the NOX SIP Call requirement for the SIP
to include part 75 monitoring requirements, Virginia's SIP still
includes the state's NOX Budget Trading Program rules, and
those rules continue to require non-EGUs to monitor and report ozone
season NOX emissions under part 75 even though EPA is no
longer administering the trading program provisions of the state's
rules. Thus, removal of the state's CAIR rules for ozone season
NOX emissions from Virginia's SIP will not eliminate the
required SIP provisions for part 75 monitoring by non-EGUs under the
NOX SIP Call because the SIP will still include the
equivalent provisions in the state's NOX Budget Trading
Program rules.
With respect to the NOX SIP Call requirement for the SIP
to include enforceable control measures for non-EGUs, Virginia formerly
met the requirement by including these sources
[[Page 10794]]
in the state's CAIR trading program for ozone season NOX
emissions. When EPA initially replaced the CAIR trading programs with
the CSAPR trading programs in 2015, the CSAPR regulations did not
provide an option for states to expand trading program applicability to
include these non-EGUs. In the CSAPR Update, EPA restored the option to
include these EGUs in the current CSAPR trading program for ozone
season NOX starting in 2019, but Virginia has not elected
this option. Accordingly, since January 1, 2015, when the CSAPR federal
trading program became effective in Virginia and EPA stopped
administering the CAIR trading programs, the Virginia SIP has not
contained an effective regulation addressing the NOX SIP
Call requirement for enforceable control measures for non-EGUs that
formerly participated in the state's NOX Budget Trading
Program. However, Virginia's request in its January 5, 2017 SIP seeking
removal from its SIP of 9 VAC 5 Chapter 140: Part III--NOX
Ozone Season Trading Program and EPA's action to approve the January 5,
2017 submittal did not create this gap in coverage under the Virginia
SIP. Rather, as described above, the gap predates the SIP submittal at
issue in this action, and approval of the SIP submittal will not
exacerbate or otherwise affect the gap. According to Virginia, the
Commonwealth is in the process of drafting a regulation to address the
Commonwealth's obligations under the NOX SIP Call (including
its obligation to address these non-EGUs which formerly participated in
the state's CAIR trading program for ozone season NOX
emissions). In remedying its provisions to address the NOX
SIP Call, Virginia must satisfy the requirements of 40 CFR 51.121(f)(2)
for the SIP to include enforceable control measures for non-EGUs that
are stationary, fossil fuel-fired boilers, combustion turbines, or
combined cycle systems with a maximum design heat input greater than
250 MMBtu/hr. EPA expects Virginia will submit such provisions to EPA
to be included in Virginia's SIP, and EPA will review and act on any
such SIP submittal from Virginia addressing the Commonwealth's
NOX SIP Call obligations in a separate rulemaking.
In summary, Virginia's CAIR rules at 9 VAC 5, Chapter 140: Part II-
NOX Annual Trading Program, Part III--NOX Ozone
Season Trading Program, and Part IV--SO2 Annual Trading
Program (sections 5-140-1010 through 5-140-3880) no longer play any
role in addressing the transport obligations that the rules were
adopted to address, and removal of the rules from the SIP will not
introduce any new gaps with respect to the additional purposes that the
rules served with respect to addressing the state's ongoing obligations
under the NOX SIP Call. EPA therefore finds Virginia's
January 5, 2017 SIP revision requesting removal of these CAIR rules
from the SIP approvable in accordance with section 110 of the CAA. The
public comments received on the NPR are discussed in Section III of
this rulemaking action.
III. Public Comments and EPA's Response
EPA received two public comments on our September 28, 2017 action
to approve Virginia's January 5, 2017 SIP submittal that requests the
removal of the regulations under 9 VAC 5 Chapter 140: Part II--
NOX Annual Trading Program; Part III--NOX Ozone
Season Trading Program; and Part IV--SO2 Annual Trading
Program (Sections 5-140-1010 through 5-140-3880), which implemented the
state's CAIR annual NOX, ozone season NOX, and
annual SO2 trading programs, from the Virginia SIP. The
comment submitted on October 7, 2017 was not specific to this
rulemaking action and will not be addressed here.
Comment: The commenter stated that ``EPA needs to ensure that the
NOX SIP call sources'' are addressed in the Virginia SIP.
The commenter also requested that EPA not remove CAIR in Virginia,
citing its public health benefits.
EPA Response to Comment: As discussed in Section II, the CAIR
trading programs are no longer being administered, and for that reason
removing Virginia's CAIR rules from the state's SIP will have no
consequences for any source's operations or emissions or for public
health. EPA also notes that removal of the state's CAIR rules from the
state's SIP does not eliminate requirements for the state's EGUs and
non-EGUs to monitor and report their ozone season NOX
emissions in accordance with 40 CFR part 75 as required under the
NOX SIP Call. The EGUs continue to be subject to part 75
requirements under the current CSAPR trading program rules, and the
non-EGUs continue to be subject to part 75 requirements under the
state's NOX Budget Trading Program rules, which are still
included in the state's SIP.
EPA agrees that under the NOX SIP Call, the Virginia SIP
must include enforceable control measures for ozone season
NOX emissions from non-EGUs, such as stationary, fossil
fuel-fired boilers, combustion turbines, or combined cycle systems with
a maximum design heat input greater than 250 MMBtu/hr, that formerly
participated in the state's NOX SIP Call trading program and
CAIR trading program for ozone season NOX emission. This
requirement for the SIP to include enforceable control measures was
formerly met by the SIP provisions requiring these sources to
participate in the state's NOX Budget Trading Program and
then the state's CAIR trading program for ozone season NOX
emissions. However, since 2015, when EPA began implementing the CSAPR
trading programs and stopped administering the CAIR trading programs in
response to the D.C. Circuit's remand of CAIR, Virginia's SIP has not
included enforceable control measures for NOX emissions from
these non-EGUs. This gap in SIP coverage was caused by the
discontinuation of the CAIR trading programs and predates the SIP
submittal at issue in this action. Removing the state's CAIR rules from
the SIP at this time will not exacerbate or otherwise affect this pre-
existing lack of enforceable control measures in the SIP. As stated
above in Section II, according to Virginia, the Commonwealth is in the
process of drafting a regulation to address the Commonwealth's
obligation under the NOX SIP Call with respect to
NOX emissions from these non-EGUs, which includes the
requirement for enforceable control measures. EPA expects Virginia will
submit such provisions to EPA to be included in Virginia's SIP, and EPA
will review and act on any such SIP submittal from Virginia addressing
the Commonwealth's NOX SIP Call obligations in a separate
rulemaking.
IV. Final Action
EPA is approving the Virginia SIP revision submitted on January 5,
2017 that sought removal from the Virginia SIP of regulations under 9
VAC 5 Chapter 140: Part II--NOX Annual Trading Program; Part
III--NOX Ozone Season Trading Program; and Part IV--
SO2 Annual Trading Program (Sections 5-140-1010 through 5-
140-3880), which implemented the state's CAIR annual NOX,
ozone season NOX, and annual SO2 trading
programs. Removal of these regulations from the Virginia SIP is in
accordance with section 110 of the CAA. This rule, which responds to
the adverse comments received, finalizes our proposed approval of
Virginia's January 5, 2017 SIP submittal.
V. General Information Pertaining to SIP Submittals From the
Commonwealth of Virginia
In 1995, Virginia adopted legislation that provides, subject to
certain
[[Page 10795]]
conditions, for an environmental assessment (audit) ``privilege'' for
voluntary compliance evaluations performed by a regulated entity. The
legislation further addresses the relative burden of proof for parties
either asserting the privilege or seeking disclosure of documents for
which the privilege is claimed. Virginia's legislation also provides,
subject to certain conditions, for a penalty waiver for violations of
environmental laws when a regulated entity discovers such violations
pursuant to a voluntary compliance evaluation and voluntarily discloses
such violations to the Commonwealth and takes prompt and appropriate
measures to remedy the violations. Virginia's Voluntary Environmental
Assessment Privilege Law, Va. Code Sec. 10.1-1198, provides a privilege
that protects from disclosure documents and information about the
content of those documents that are the product of a voluntary
environmental assessment. The Privilege Law does not extend to
documents or information that: (1) Are generated or developed before
the commencement of a voluntary environmental assessment; (2) are
prepared independently of the assessment process; (3) demonstrate a
clear, imminent and substantial danger to the public health or
environment; or (4) are required by law.
On January 12, 1998, the Commonwealth of Virginia Office of the
Attorney General provided a legal opinion that states that the
Privilege law, Va. Code Sec. 10.1-1198, precludes granting a privilege
to documents and information ``required by law,'' including documents
and information ``required by federal law to maintain program
delegation, authorization or approval,'' since Virginia must ``enforce
federally authorized environmental programs in a manner that is no less
stringent than their federal counterparts. . . .'' The opinion
concludes that ``[r]egarding Sec. 10.1-1198, therefore, documents or
other information needed for civil or criminal enforcement under one of
these programs could not be privileged because such documents and
information are essential to pursuing enforcement in a manner required
by federal law to maintain program delegation, authorization or
approval.''
Virginia's Immunity law, Va. Code Sec. 10.1-1199, provides that
``[t]o the extent consistent with requirements imposed by federal
law,'' any person making a voluntary disclosure of information to a
state agency regarding a violation of an environmental statute,
regulation, permit, or administrative order is granted immunity from
administrative or civil penalty. The Attorney General's January 12,
1998 opinion states that the quoted language renders this statute
inapplicable to enforcement of any federally authorized programs, since
``no immunity could be afforded from administrative, civil, or criminal
penalties because granting such immunity would not be consistent with
federal law, which is one of the criteria for immunity.''
Therefore, EPA has determined that Virginia's Privilege and
Immunity statutes will not preclude the Commonwealth from enforcing its
program consistent with the federal requirements. In any event, because
EPA has also determined that a state audit privilege and immunity law
can affect only state enforcement and cannot have any impact on federal
enforcement authorities, EPA may at any time invoke its authority under
the CAA, including, for example, sections 113, 167, 205, 211 or 213, to
enforce the requirements or prohibitions of the state plan,
independently of any state enforcement effort. In addition, citizen
enforcement under section 304 of the CAA is likewise unaffected by
this, or any, state audit privilege or immunity law.
VI. Statutory and Executive Order Reviews
A. General Requirements
Under the CAA, the Administrator is required to approve a SIP
submission that complies with the provisions of the CAA 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 CAA. Accordingly, this
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 action:
Is not a ``significant regulatory action'' subject to
review by the Office of Management and Budget under Executive Orders
12866 (58 FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21,
2011);
Is not an Executive Order 13771 (82 FR 9339, February 2,
2017) regulatory action because SIP approvals are exempted under
Executive Order 12866.
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 be inconsistent
with the CAA; 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).
The SIP is not approved to apply on any Indian reservation land as
defined in 18 U.S.C. 1151 or in any other area where EPA or an Indian
tribe has demonstrated that a tribe has jurisdiction. In those areas of
Indian country, the rule does not have tribal implications and will not
impose substantial direct costs on tribal governments or preempt tribal
law as specified by Executive Order 13175 (65 FR 67249, November 9,
2000).
B. Submission to Congress and the Comptroller General
The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a rule may take effect, the agency promulgating
the rule must submit a rule report, which includes a copy of the rule,
to each House of the Congress and to the Comptroller General of the
United States. EPA will submit a report containing this action and
other required information to the U.S. Senate, the U.S. House of
Representatives, and the Comptroller General of the United States prior
to publication of the rule in the Federal Register. A major rule cannot
take effect until 60 days after it is published in the Federal
Register. This action is not a ``major rule'' as defined by 5 U.S.C.
804(2).
C. Petitions for Judicial Review
Under section 307(b)(1) of the CAA, petitions for judicial review
of this action must be filed in the United States
[[Page 10796]]
Court of Appeals for the appropriate circuit by May 14, 2018. Filing a
petition for reconsideration by the Administrator of this final rule
does not affect the finality of this action for the purposes of
judicial review nor does it extend the time within which a petition for
judicial review may be filed, and shall not postpone the effectiveness
of such rule or action.
This action removing from the Virginia SIP regulations under
Sections 5-140-1010 through 5-140-3880 of 9 VAC 5 Chapter 140 that
implemented the CAIR annual NOX, ozone season
NOX, and annual SO2 trading programs may not be
challenged later in proceedings to enforce its requirements. (See CAA
section 307(b)(2)).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Incorporation by
reference, Intergovernmental relations, Nitrogen dioxide, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Sulfur
oxides, Volatile organic compounds.
Dated: February 23, 2018.
Cosmo Servidio,
Regional Administrator, Region III.
40 CFR part 52 is amended as follows:
PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS
0
1. The authority citation for part 52 continues to read as follows:
Authority: 42 U.S.C. 7401 et seq.
Subpart VV--Virginia
Sec. 52.2420 [Amended]
0
2. In Sec. 52.2420, the table in paragraph (c) is amended by:
0
a. Removing the table heading ``Part II--NOX Annual Trading
Program''; the table subheading ``Article 1 CAIR NOX Annual
Trading Program General Provisions'' and the entries ``5-140-1010''
through ``5-140-1080''; the table subheading ``Article 2 CAIR-
designated Representative for CAIR NOX Sources'' and the
entries ``5-140-1100'' through ``5-140-1150''; the table subheading
``Article 3 Permits'' and the entries ``5-140-1200'' through ``5-140-
1240''; the table subheading ``Article 5 CAIR NOX Allowance
Allocations'' and the entries ``5-140-1400'' through ``5-140-1430'';
the table subheading ``Article 6 CAIR NOX Allowance Tracking
System'' and the entries ``5-140-1510'' through ``5-140-1570''; the
table subheading ``Article 7 CAIR NOX Allowance Transfers''
and the entries ``5-140-1600'' through ``5-140-1620''; the table
subheading ``Article 8 Monitoring and Reporting'' and the entries ``5-
140-1700'' through ``5-140-1750''; the table subheading ``Article 9
CAIR NOX Opt-in Units'' and the entries ``5-140-1800''
through ``5-140-1880''.
0
b. Removing the table heading ``Part III NOX Ozone Season
Trading Program''; the table subheading ``Article 1 CAIR NOX
Ozone Season Trading Program General Provisions'' and the entries ``5-
140-2010'' through ``5-140-2080''; the table subheading ``Article 2
CAIR-Designated Representative for CAIR NOX Ozone Season
Sources'' and the entries ``5-140-2100'' through ``5-140-2150''; the
table subheading ``Article 3 Permits'' and the entries ``5-140-2200''
through ``5-140-2240''; the table subheading ``Article 5 CAIR
NOX Ozone Season Allowance Allocations'' and the entries
``5-140-2400'' through ``5-140-2430''; the table subheading ``Article 6
CAIR NOX Ozone Season Allowance Tracking System'' and the
entries ``5-140-2510'' through ``5-140-2570''; the table subheading
``Article 7 CAIR NOX Ozone Season Allowance Transfers'' and
the entries ``5-140-2600'' through ``5-140-2620''; the table subheading
``Article 8 Monitoring and Reporting'' and the entries ``5-140-2700''
through ``5-140-2750''; the table subheading ``Article 9 CAIR
NOX Ozone Season Opt-in Units'' and the entries ``5-140-
2800'' through ``5-140-2880''.
0
c. Removing the table heading ``Part IV--SO2 Annual Trading
Program''; the table subheading ``Article 1 CAIR SO2 Trading
Program General Provisions'' and the entries ``5-140-3010'' through
``5-140-3080''; the table subheading ``Article 2 CAIR-designated
Representative for CAIR SO2 Sources'' and the entries ``5-
140-3100'' through ``5-140-3150''; the table subheading ``Article 3
Permits'' and the entries ``5-140-3200'' through ``5-140-3240''; the
table subheading ``Article 5 CAIR SO2 Allowance
Allocations'' and the entries ``5-140-3400'' through ``5-140-3420'';
the table subheading ``Article 6 CAIR SO2 Allowance Tracking
System'' and the entries ``5-140-3510'' through ``5-140-3570''; the
table subheading ``Article 7 CAIR SO2 Allowance Transfers''
and the entries ``5-140-3600'' through ``5-140-3620''; the table
subheading ``Article 8 Monitoring and Reporting'' and the entries ``5-
140-3700'' through ``5-140-3750''; the table subheading ``Article 9
CAIR SO2 Opt-in Units'' and the entries ``5-140-3800''
through ``5-140-3880''.
[FR Doc. 2018-04935 Filed 3-12-18; 8:45 am]
BILLING CODE 6560-50-P