Air Plan Approval; New Jersey; NOX SIP Call and Removal of CAIR, 58306-58312 [2024-15705]

Download as PDF 58306 Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Parts 1 and 58 [REG–115710–22] RIN 1545–BQ59 Excise Tax on Repurchase of Corporate Stock; Hearing Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking; notice of hearing. AGENCY: This document provides a notice of public hearing on proposed regulations that would provide guidance regarding the application of the new excise tax on repurchases of corporate stock made after December 31, 2022. DATES: The public hearing on these proposed regulations has been scheduled for August 27, 2024, at 10:00 a.m. ET. The IRS must receive speakers’ outlines of the topics to be discussed at the public hearing by August 9, 2024. If no outlines are received by August 9, 2024, the public hearing will be cancelled. SUMMARY: The public hearing is being held in the Auditorium, at the Internal Revenue Service Building, 1111 Constitution Avenue NW, Washington, DC. Due to security procedures, visitors must enter at the Constitution Avenue entrance. In addition, all visitors must present a valid photo identification to enter the building. Because of access restrictions, visitors will not be admitted beyond the immediate entrance area more than 30 minutes before the hearing starts. Participants may alternatively attend the public hearing by telephone. Send submissions electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS REG–115710– 22) or to CC:PA:01:PR (REG–115710– 22), Room 5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday to CC:PA:01:PR (REG–115710–22), Couriers Desk, Internal Revenue Service, 1111 Constitution Avenue NW, Room 5205, Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Concerning proposed §§ 58.4501–1 through 58.4501–6, Kailee H. Farrell at (202) 317–6975; concerning proposed § 58.4501–7, Brittany N. Dobi at (202) 317–5469; concerning proposed § 1.1275–6(f)(12)(iii), Jonathan A. LaPlante at (202) 317–3900; concerning khammond on DSKJM1Z7X2PROD with PROPOSALS ADDRESSES: VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 the hearing and/or to be placed on the building access list to attend the public hearing, call the Publications and Regulations Section at (202) 317–6901 (not a toll-free number) or by email to publichearings@irs.gov (preferred). SUPPLEMENTARY INFORMATION: The subject of the public hearing is the notice of proposed rulemaking (REG– 115710–22) that was published in the Federal Register on Friday, April 12, 2024 (FR 89 25980). The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who wish to present oral comments at the hearing must submit an outline of the topics to be discussed and the time to be devoted to each topic by August 9, 2024. A period of 10 minutes will be allotted to each person for making comments. An agenda showing the scheduling of the speakers will be prepared after the deadline for receiving outlines has passed. Copies of the agenda will be available free of charge at the hearing, and via the Federal eRulemaking Portal (www.Regulations.gov) under the title of Supporting & Related Material. If no outline of the topics to be discussed at the hearing is received by August 9, 2024, the public hearing will be cancelled. If the public hearing is cancelled, a notice of cancellation of the public hearing will be published in the Federal Register. Individuals who want to testify in person at the public hearing must send an email to publichearings@irs.gov to have your legal name added to the building access list. The subject line of the email must contain the regulation number REG–115710–22 and the language ‘‘TESTIFY In Person.’’ For example, the subject line may say: Request to TESTIFY In Person at Hearing for REG–115710–22. Individuals who want to testify by telephone at the public hearing must send an email to publichearings@irs.gov to receive the telephone number and access code for the hearing. The subject line of the email must contain the regulation number REG–115710–22 and the language ‘‘TESTIFY Telephonically.’’ For example, the subject line may say: Request to TESTIFY Telephonically at Hearing for REG–115710–22. Individuals who want to attend the public hearing in person without testifying must also send an email to publichearings@irs.gov to have your legal name added to the building access list. The subject line of the email must contain the regulation number REG– 115710–22 and the language ‘‘ATTEND In Person.’’ For example, the subject PO 00000 Frm 00012 Fmt 4702 Sfmt 4702 line may say: Request to ATTEND Hearing In Person for REG–115710–22. Requests to attend the public hearing must be received by 5:00 p.m. ET on August 22, 2024. Individuals who want to attend the public hearing by telephone without testifying must also send an email to publichearings@irs.gov to receive the telephone number and access code for the hearing. The subject line of the email must contain the regulation number REG–115710–22 and the language ‘‘ATTEND Hearing Telephonically.’’ For example, the subject line may say: Request to ATTEND Hearing Telephonically for REG–115710–22. Requests to attend the public hearing must be received by 5:00 p.m. ET on August 22, 2024. Any questions regarding speaking at or attending a public hearing may also be emailed to publichearings@irs.gov. Oluwafunmilayo A. Taylor, Section Chief, Publications and Regulations Section, Associate Chief Counsel, (Procedure and Administration). [FR Doc. 2024–15717 Filed 7–17–24; 8:45 am] BILLING CODE 4830–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R02–OAR–2024–0110, FRL–12093– 01–R2] Air Plan Approval; New Jersey; NOX SIP Call and Removal of CAIR Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve the removal of the New Jersey Clean Air Interstate Rule (CAIR nitrogen oxides (NOX) Trading Program regulations from the New Jersey State Implementation Plan (SIP) and is proposing to conditionally approve the removal of the New Jersey NOX Budget Program regulations from the New Jersey SIP. On August 23, 2018, the New Jersey Department of Environmental Protection (NJDEP) submitted a SIP revision requesting the removal of the State’s CAIR NOX Trading Program and NOX Budget Program regulations from the New Jersey SIP. NJDEP submitted a supplement to the revision on May 31, 2024, that commits NJDEP to develop a Memorandum of Agreement with the EPA that indicates how the State of New Jersey will maintain compliance with the State’s NOX SIP Call obligations for SUMMARY: E:\FR\FM\18JYP1.SGM 18JYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules the types of large non-electricity generating units (non-EGUs) that were previously regulated under the New Jersey NOX Budget Program. DATES: Written comments must be received on or before August 19, 2024. ADDRESSES: Submit your comments, identified by Docket ID Number EPA– R02–OAR–2024–0110, at https:// www.regulations.gov. Although listed in the index, some information is not publicly available, e.g., Controlled Unclassified Information (CUI) (formally referred to as 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 electronically through https:// www.regulations.gov. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be CUI or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. The EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud, or other file sharing system). For additional submission methods, the full EPA public comment policy, information about CUI or multimedia submissions, and general guidance on making effective comments, please visit https://www.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Fausto Taveras, Environmental Protection Agency, Region 2, Air Programs Branch, 290 Broadway, New York, New York 10007–1866, at (212) 637–3378, or by email at Taveras.Fausto@epa.gov. SUPPLEMENTARY INFORMATION: The SUPPLEMENTARY INFORMATION section is arranged as follows: I. Background II. EPA’s Evaluation and Proposed Action III. Environmental Justice Considerations IV. Statutory and Executive Order Reviews I. Background Under Clean Air Act (CAA or Act) section 110(a)(2)(D)(i)(I), also called the good neighbor provision, States are VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 required to address the interstate transport of air pollution. Specifically, the good neighbor provision requires that each state’s implementation plan contain adequate provisions to prohibit air pollutant emissions from within the state that will significantly contribute to nonattainment of the national ambient air quality standards (NAAQS), or that will interfere with maintenance of the NAAQS, in any other state. In October 1998 (63 FR 57356), the 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’’ (NOX SIP Call).1 The NOX SIP Call required Eastern States, including New Jersey, to submit SIPs that prohibit excessive emissions of ozone season NOX by implementing statewide emissions budgets. The NOX SIP Call addressed the good neighbor provision for the 1979 ozone NAAQS and was designed to mitigate the impact of transported NOX emissions, one of the precursors of ozone.2 To help implement the NOX SIP Call, EPA developed the NOX Budget Trading Program, a regional allowance trading program. States could meet most of their obligations under the NOX SIP Call by requiring certain types of sources to participate in this trading program: generally, EGUs with capacity greater than 25 megawatts (MW) 3 and large non-EGUs, such as industrial boilers and combustion turbines, with a rated heat input greater than 250 million British thermal units per hour (MMBtu/ hr). NJDEP submitted a SIP revision including amendments to the regulation N.J.A.C. 7:27–31 (otherwise known as subchapter 31), ‘‘NOX Budget Program’’, on December 10, 1999,4 to comply with the NOX SIP Call requirements. The EPA approved the revision as meeting the requirements of the NOX SIP Call in 2001. See 66 FR 28063 (May 22, 2001). The approved revision required EGUs with capacity greater than 15 MW and large non-EGUs in the State to participate in the State’s NOX Budget Program beginning in 2003. In 2005, EPA published CAIR, which required Eastern States, including New 1 The EPA issued subsequent technical amendments to the NOX SIP Call in May 1999 (64 FR 26298) and March 2000 (65 FR 11222). 2 As originally promulgated, the NO SIP Call X also addressed good neighbor obligations under the 1997 8-hour ozone NAAQS, but EPA subsequently stayed and later rescinded the rule’s provisions with respect to that standard. See 65 FR 56245 (September 18, 2000); 84 FR 8422 (March 8, 2019). 3 In some States, EGUs smaller than 25 MW were also part of EPA’s NOX Budget Trading Program. 4 The SIP revision was further supplemented by New Jersey on July 31, 2000. PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 58307 Jersey, to submit SIPs that prohibited emissions consistent with revised ozone season (and annual) NOX budgets. See 70 FR 25162 (May 12, 2005); see also 71 FR 25328 (April 28, 2006). CAIR addressed the good neighbor provision for the 1997 ozone NAAQS and the 1997 fine particulate matter (PM2.5) NAAQS and was designed to mitigate the impact of transported NOX emissions with respect to ozone and PM2.5. CAIR established several trading programs that States could join through SIPs or that EPA would implement through Federal implementation plans (FIPs) for EGUs greater than 25 MW in each affected state; States also retained the option to submit SIPs that achieved the required emission reductions from other types of sources.5 When the CAIR trading program for ozone season NOX was implemented beginning on January 1, 2009, the EPA discontinued administration of the NOX Budget Trading Program; however, the requirements of the NOX SIP Call continued to apply. For large non-EGUs that would have been covered under the NOX Budget Trading Program, States were allowed, but not obligated, to achieve the required emissions reductions from these types of units by including the units in the CAIR trading program for ozone season NOX. On October 1, 2007, the EPA approved revisions to New Jersey’s SIP that used the CAIR FIP trading program for ozone season NOX to address the State’s obligations under the NOX SIP Call related to EGUs. Consistent with CAIR’s requirements, EPA approved a SIP revision in which New Jersey regulations: (1) adopted State rule provisions modifying the allowance allocation provisions of the CAIR FIP applicable to New Jersey, and (2) sunset New Jersey’s NOX Budget Program requirements. See 72 FR 55672. Specifically, New Jersey adopted under N.J.A.C. 7:27–30 (otherwise known as subchapter 30), the CAIR NOX Trading Program, provisions for allocating allowances under the CAIR FIP NOX annual and ozone season trading programs.6 Additionally, New Jersey adopted at N.J.A.C. 7:27–31.23, a sunset provision, which established that the Federal CAIR NOX Ozone Season Trading Program as modified by New Jersey’s SIP revision would replace New Jersey’s NOX Budget Program (Subchapter 31) starting in 2009. 5 CAIR had separate trading programs for annual sulfur dioxide emissions, seasonal NOX emissions, and annual NOX emissions. 6 New Jersey’s rule did not modify the CAIR FIP regarding SO2. E:\FR\FM\18JYP1.SGM 18JYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 58308 Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules Participation of New Jersey’s EGUs in CAIR’s ozone season NOX trading program pursuant to a FIP achieved the emissions reductions necessary to address the State’s obligation under the NOX SIP Call for those units. However, consistent with the flexibility given to States in the CAIR FIP, New Jersey chose not to expand the applicability provisions of CAIR’s NOX ozone season trading program to include the types of non-EGUs that had been included in the State’s NOX Budget program. 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. See North Carolina v. EPA, 531 F.3d 896, modified on rehearing, 550 F.3d 1176 (D.C. Cir. 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 to be implemented with the NOX annual and ozone season trading programs beginning in 2009, and the SO2 annual trading program beginning in 2010. In response to the D.C. Circuit’s remand of CAIR, the EPA promulgated the Cross-State Air Pollution Rule (CSAPR) to replace CAIR and address good neighbor obligations for the 1997 ozone NAAQS, the 1997 PM2.5 NAAQS, and the 2006 PM2.5 NAAQS. See 76 FR 48208 (August 8, 2011). Through FIPs, CSAPR required EGUs in Eastern States, including New Jersey, to meet annual and ozone season NOX emission budgets and annual SO2 emission budgets implemented through new trading programs. CSAPR also contained provisions that would sunset CAIRrelated obligations on a schedule coordinated with the implementation of the CSAPR compliance requirements. Following litigation-related delays, EPA stopped administering the CAIR trading programs with respect to emissions occurring after December 31, 2014, and began implementing the CSAPR trading programs with respect to emissions occurring on and after January 1, 2015. In July 2015, the D.C. Circuit generally upheld CSAPR but remanded several state budgets, including New Jersey’s ozone season NOX budget, to EPA for reconsideration. EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 129–30 (D.C. Cir. 2015). EPA addressed the remanded ozone season NOX budgets in the Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS (CSAPR Update), which also partially addressed Eastern States’ VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 good neighbor obligations for the 2008 ozone NAAQS. See 81 FR 74504 (October 26, 2016). The CSAPR Update implemented the budgets through FIPs requiring sources to participate in a revised CSAPR NOX ozone season trading program beginning with the 2017 ozone season. The CSAPR Update was subject to legal challenge in the D.C. Circuit. Wisconsin v. EPA, 938 F.3d 303 (D.C. Cir. 2019); see also New York v. EPA, 781 Fed. App’x 4 (D.C. Cir. 2019). In response to the Wisconsin remand of the CSAPR Update, the EPA promulgated the Revised CSAPR Update, which established new or amended FIPs for 12 States, including New Jersey. See 86 FR 23054 (April 30, 2021). The FIPs required the implementation of revised emissions budgets for EGUs beginning with the 2021 ozone season. In 2023, the EPA published the Federal Good Neighbor Plan (GNP), which established requirements to address 23 States’ good neighbor obligations for the 2015 ozone NAAQS. See 88 FR 36654 (June 5, 2023). Under the FIP requirements for the GNP, EGUs in 22 States, including New Jersey, were required to participate in a revised version of the CSAPR NOX Ozone Season Group 3 Trading Program beginning in the 2023 ozone season.7 States have options to replace the FIPs promulgated under CSAPR, the CSAPR Update, the Revised CSAPR Update, and the GNP with SIP revisions, including but not limited to SIP revisions that adopt state trading programs substantively identical to and integrated with the Federal trading programs established under the FIPs for other States. New Jersey has not chosen to submit SIP revisions to replace the FIPs issued under these rules, and instead its EGUs have remained subject to the respective FIPs. Participation by a state’s EGUs in the trading programs for ozone season NOX under CSAPR, the CSAPR Update, the Revised CSAPR Update, or the GNP generally addresses the state’s obligation under the NOX SIP Call for EGUs, but these trading programs no longer include an option specifically designed 7 In response to judicial orders partially staying a separate EPA action (88 FR 9336, February 13, 2023) as to 12 States, the EPA has issued two interim final rules staying implementation of the Good Neighbor Plan’s requirements as to the sources in those States. See 88 FR 49295 (July 31, 2023); 88 FR 67102 (September 29, 2023). On June 27, 2024, the Supreme Court of the United States granted stay applications of the Good Neighbor Plan, Ohio et al. v. EPA, Nos. 23A349, 23A350, 23A351, and 23A384, 603 U.S.l(2024). This does not affect the EPA’s analysis of New Jersey’s NOX SIP Call obligations as to non-EGUs discussed in this document. PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 to allow States to address their obligations under the NOX SIP Call for non-EGUs by requiring the non-EGUs to participate in the trading programs.8 The GNP required that certain types of non-EGUs 9 in 20 States, including New Jersey, reduce NOX emissions through emissions limitations and associated requirements beginning in the 2026 ozone season. However, it is important to note that the types of non-EGUs regulated under the NOX SIP Call and under the GNP do not fully overlap, and the forms of the requirements are different. EPA has not made any finding that compliance with the GNP’s requirements by the types of non-EGUs in a state subject to that rule addresses the state’s obligations with respect to the types of non-EGUs in the state affected under the NOX SIP Call. New Jersey provided a SIP submittal on August 23, 2018, to EPA requesting removal of the State’s CAIR NOX Trading Program (Subchapter 30) and the State’s NOX Budget Program (Subchapter 31) from the New Jersey SIP. As previously mentioned in this section, EPA has already approved into the SIP a sunset provision of Subchapter 31. The approved sunset provision ended New Jersey’s NOX Budget Program for all sources that were previously covered sources, beginning in 2009. Since New Jersey’s large non-EGUs no longer participate in a NOX ozone season trading program, the NOX SIP Call regulations at 40 CFR 51.121(r)(2) as well as anti-backsliding provisions at 40 CFR 51.905(f) and 40 CFR 51.1105(e) require the State to meet its ongoing obligations under the NOX SIP Call with respect to these types of non-EGUs in some other way. Under 40 CFR 51.121(f)(2) of the NOX SIP Call regulations, where a state’s SIP 8 While some NO SIP Call States elected to use X the specifically designed SIP revision option of this nature provided under CAIR, other States (including New Jersey) did not, and the option was removed under CSAPR. A similar specifically designed SIP revision option was provided under the CSAPR Update and the Revised CSAPR Update, but no States elected to use it, and it was removed under the GNP. Any future SIP revision seeking to address a state’s NOX SIP Call obligations for nonEGUs by requiring the non-EGUs to participate in one of these trading programs will be evaluated on a case-by-case basis. See 88 FR at 36844. 9 These industrial source types are: reciprocating internal combustion engines in Pipeline Transportation of Natural Gas; kilns in Cement and Concrete Product Manufacturing; reheat furnaces in Iron and Steel Mills and Ferroalloy Manufacturing; furnaces in Glass and Glass Product Manufacturing; boilers in Iron and Steel Mills and Ferroalloy Manufacturing, Metal Ore Mining, Basic Chemical Manufacturing, Petroleum and Coal Products Manufacturing, and Pulp, Paper, and Paperboard Mills; and combustors and incinerators in Solid Waste Combustors and Incinerators. E:\FR\FM\18JYP1.SGM 18JYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules contains control measures for EGUs and large non-EGU boilers and combustion turbines, the SIP must contain enforceable limits on the ozone season NOX mass emissions from these sources. In addition, under 40 CFR 51.121(i)(4) of the NOX SIP Call regulations as originally promulgated, the SIP also had to require these sources to monitor emissions according to the provisions of 40 CFR part 75, which generally entails the use of continuous emission monitoring systems (CEMS). New Jersey triggered these requirements by including control measures in its SIP for these types of sources, and the requirements have remained in effect despite the discontinuation of the NOX Budget Trading Program after the 2009 ozone season. On March 8, 2019, EPA revised some of the regulations that were originally promulgated in 1998 to implement the NOX SIP Call.10 The revision gave States covered by the NOX SIP Call greater flexibility concerning the form of the NOX emissions monitoring requirements that the States must include in their SIPs for certain emissions sources. The revision amended 40 CFR 51.121(i)(4) to make 40 CFR part 75 monitoring, recordkeeping, and reporting optional, such that SIPs may establish alternative monitoring requirements for NOX SIP Call units that meet the general requirements of 40 CFR 51.121(f)(1) and (i)(1). Under the updated provision, a state’s implementation plan still needs to include some form of emissions monitoring requirements for these types of sources, consistent with the NOX SIP Call’s general enforceability and monitoring requirements at § 51.121(f)(1) and (i)(1), respectively, but States are no longer required to satisfy these general NOX SIP Call requirements specifically through the adoption of 40 CFR part 75 monitoring requirements. On March 7, 2024, New Jersey submitted a letter to the EPA committing to develop a Memorandum of Agreement (MOA) between the EPA and the NJDEP that outlines how NJDEP will comply with the NOX SIP Call, specifically for the types of non-EGUs that were previously regulated by the New Jersey NOX Budget Program and were not included in the subsequent CAIR FIP trading program. Subsequently, on May 31, 2024, New Jersey submitted an updated commitment letter to revise and replace the previous March 7, 2024, letter. The need for this revision arose because NJDEP conducted an analysis to 10 See ‘‘Emissions Monitoring Provisions in State Implementation Plans Required Under the NOX SIP Call,’’ 84 FR 8422 (March 8, 2019). VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 58309 determine what units would have been classified as a non-EGU under the applicability criteria of the New Jersey NOX Budget Program (N.J.A.C. 7:27–31), as in effect as of September 30, 2008. As a result of this analysis, the value of the non-EGU budget was adjusted.11 The revised letter adjusted the non-EGU budgets for the affected units’ aggregated emissions during the ozone season and revised the date by which the State will submit the MOA to the EPA. Both of the NJDEP commitment letters are included in the docket for this rulemaking. In the May 31, 2024, letter, NJDEP commits to submitting the MOA to the EPA by no later than March 7, 2025. New Jersey provided a date certain for purposes of CAA 110(k)(4), which authorizes the EPA to conditionally approve a plan revision based on a commitment by the state to adopt specific enforceable measures by a date certain but not later than one year after the date of the plan approval. In their letter to the EPA, NJDEP indicated that it was their understanding that the EPA would approve the MOA as an enforceable SIP revision by no later than one year from the date the EPA conditionally approves the New Jersey SIP Revision—Removal of CAIR and NOX Budget Programs, which was submitted on August 23, 2018. NJDEP indicated in their commitment letters that the non-EGUs no longer in the NOX trading program will not be subject to the monitoring, recordkeeping, and reporting requirements in 40 CFR part 75, and instead will rely on the emission statement reporting (7:27 Subchapter21) and emissions limits in their NOX RACT rules (7:27 Subchapter-19) as reflected in sources’ air permits to continue to meet and demonstrate compliance with the non-EGU portion of the budget set under the State’s former NOX Budget Program. The MOA will serve to memorialize an aggregate state-wide budget and monitoring and reporting requirements for the affected non-EGU units, as well as official annual ozone season NOX reporting by the state to the EPA. Specifically, NJDEP indicated in their commitment letter to the EPA that the MOA will specify how the emission limits and monitoring, recordkeeping, and reporting requirements for sources covered by the SIP are sufficient to meet the NOX SIP Call requirements for these II. EPA’s Evaluation and Proposed Action On August 23, 2018, NJDEP submitted a SIP revision requesting that EPA update the New Jersey SIP to reflect the removal of New Jersey’s CAIR NOX Trading Program establishing the State’s allowance allocations under the Federal CAIR trading programs (Subchapter 30) 11 NJDEP analysis determined that the natural gas turbine unit located at cogeneration facility, EF Kenilworth, was subject to the NOX Budget Program as a small EGU (i.e., an EGU serving an electricity generator with nameplate capacity of at least 15 MW but not greater than 25 MW). 12 The 745 tons of NO per ozone season limit X corresponds to the portion of the State’s trading budget assigned to non-EGUs of the types previously regulated under the New Jersey NOX Budget Program (N.J.A.C. 7:27–31) as in effect as of September 30, 2008. PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 types of sources. The MOA would specify that NOX emissions in tons will be determined from non-EGUs during the ozone season via CEMS or stack testing already required pursuant to N.J.A.C. 7:27–19.17, ‘‘Source emission testing,’’ and reported via NJ’s Emission Statement Program (N.J.A.C. 7:27–21). The stack testing frequency, which is specified in the operating permit, shall require a new stack test at least every five years. The MOA would provide that annual and ozone-season emissions data will be collected each year, and NJDEP will report that information to EPA for each year in a format that allows for EPA to verify compliance with the NOX SIP Call. The MOA would specify that the types of non-EGUs subject to the MOA are existing, modified, and new fossil fuel-fired boilers and combustion turbines with maximum design heat input greater than 250 mmBtu/hr, except electricity generating units required to participate in the CSAPR NOX Ozone Season Group 3 Trading Program (40 CFR part 97, subpart GGGGG) or a successor trading program for seasonal NOX emissions. The MOA would specify that the affected units’ aggregated emissions will not exceed a non-EGU emissions budget of 745 tons per ozone season (May 1–September 30 of each year).12 The commitment letter indicated that the MOA will be made available for public comment and will be submitted as a SIP revision to the EPA. Once the MOA is signed by both NJDEP and the EPA, and the approval of the MOA as a part of New Jersey’s SIP is finalized, the MOA will become an enforceable part of the SIP, and the EPA and the NJDEP will have authority to enforce the conditions in the MOA (along with corresponding SIP-approved requirements applicable to the relevant sources). The MOA will establish the mechanism by which New Jersey will report to EPA consistent with its own obligations under the NOX SIP Call, and to ensure compliance with the budget per 40 CFR 51.121(r). E:\FR\FM\18JYP1.SGM 18JYP1 khammond on DSKJM1Z7X2PROD with PROPOSALS 58310 Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules and New Jersey’s NOX Budget Program (Subchapter 31) from the SIP. The State rule provision sunsetting the State’s NOX Budget Program was already approved into the SIP by EPA in 2007, and the State’s CAIR allowance allocation rules have had no effect since EPA discontinued administration of the Federal CAIR trading programs after 2014. NJDEP repealed Subchapter 30 and Subchapter 31 on December 14, 2017. As discussed previously in Section I, NJDEP provided commitment letters to the EPA on March 7, 2024, and May 31, 2024, committing to develop a MOA between the EPA and the NJDEP that outlines how NJDEP will comply with the State’s obligations under the NOX SIP Call for the types of non-EGUs that were previously regulated by the New Jersey NOX Budget Program and that were not included in the subsequent CAIR FIP trading program. Once approved into the New Jersey SIP, the MOA will ensure compliance with the New Jersey non-EGU budget per 40 CFR 51.121(r). Specifically, the MOA will serve as the enforceable mechanism for ensuring the New Jersey SIP contains enforceable limits and monitoring, recordkeeping, and reporting requirements to ensure the affected New Jersey non-EGU units’ aggregated emissions will not exceed a budget of 745 tons per ozone season on an annual basis for existing and new units. First, the EPA proposes to approve the removal of the New Jersey CAIR NOX Trading Program (Subchapter 30) from the New Jersey SIP. The State rule only established allowance allocations for use under the Federal CAIR trading programs. Because the EPA no longer administers the Federal CAIR trading programs, the removal of Subchapter 30 from the SIP will have no consequences for any sources’ operations or emissions or for the attainment or maintenance of the NAAQS in any area, now or in the future. Second, the EPA is proposing to conditionally approve the removal of the New Jersey NOX Budget Program (Subchapter 31) from the New Jersey SIP. Although EPA no longer administers the NOX Budget Trading Program and approved the sunset provision of the New Jersey NOX Budget program in a previous action (see 72 FR 55672), New Jersey has outstanding obligations under the NOX SIP Call. Accordingly, on May 31, 2024, NJDEP submitted a letter committing NJDEP to submit an MOA that will outline how NJDEP will comply with the NOX SIP Call for the types of non-EGUs previously regulated by the New Jersey NOX Budget Program by March 7, 2025. VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 Under CAA section 110(k)(4), conditional approval is an option for EPA SIP approvals based on a commitment to adopt specific enforceable measures by a date certain, but no later than one year from the date of approval. If the state fails to meet its commitment within the specified date, the approval is treated as a disapproval. Since the MOA between NJDEP and the EPA will be enforceable only when approved by the EPA and codified through incorporating by reference in the EPA-approved statutes and regulations in the New Jersey SIP at 40 CFR 52.1570, it will be necessary for the EPA to take this action no later than one year from the date of the conditional approval. Based on the State’s May 31, 2024, commitment to submit a SIP revision by March 7, 2025, addressing the identified deficiency and the EPA taking action to approve the MOA as an enforceable SIP revision no later than one year from the date the EPA finalizes a conditional approval, EPA is proposing to conditionally approve the portion of the August 23, 2018, SIP revision requesting the removal of the New Jersey NOX Budget Program (Subchapter 31) from the New Jersey SIP. EPA will take action to approve or disapprove the MOA into the New Jersey SIP when it is submitted to the EPA as a SIP revision. However, if the State fails to submit this revision, or if EPA does not approve the MOA as an enforceable SIP revision on or before 12 months from the date of final approval of this action, the conditional approval will become a disapproval and the EPA will issue a notice to that effect. If the conditional approval becomes a disapproval, the disapproval triggers the requirement for EPA to issue a Federal implementation plan (FIP) under CAA section 110(c) to correct the deficiency. Section 110(l) Demonstration As stated in New Jersey’s May 2024 commitment letter, the State commits to enter a Memorandum of Agreement between the USEPA and the NJDEP that outlines how NJDEP will comply with the NOX SIP Call, specifically for the types of non-electric generating units (non-EGUs) that were previously regulated by the New Jersey NOX Budget Program (N.J.A.C. 7:27-Subchapter 31) and that were not included in the subsequent CAIR FIP trading program. On June 19, 2007, New Jersey adopted rules establishing allowance allocations for the State’s EGUs participating in the ozone season NOX trading program established under the CAIR FIP but excluded non-EGU industrial units from its rulemaking. Under both the NOX PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 Budget Program and CAIR, the affected units were required to monitor pursuant to 40 CFR part 75. The EGUs that remained in the CAIR trading program continued to comply with the monitoring requirements. However, because the EPA approved the sunset of the State’s NOX Budget Program requirements in the SIP and the nonEGUs were not brought into the CAIR FIP trading program, the non-EGUs did not retain those monitoring requirements. Instead, applicable nonEGUs relied on monitoring requirements under New Jersey’s emission statement program (N.J.A.C. 7:27–21), the State’s various NOX RACT regulations (N.J.A.C. 7:27–19), and associated air permits to continue to demonstrate compliance with the 745 tons per ozone season budget set under the NOX Budget Program. The MOA will serve to memorialize an aggregate state-wide budget and monitoring and reporting requirements for the affected non-EGU units as well as official annual ozone season NOX reporting by the State to the EPA. Specifically, the MOA will specify that the non-EGU budget for the affected units’ aggregated emission will not exceed 745 tons per ozone season (May 1–September 30 of each year). To ensure that non-EGUs satisfy the requirements under the NOX SIP Call, the MOA will specify how the emission limits and monitoring, recordkeeping, and reporting requirements contained in New Jersey’s SIP address the requirements under 40 CFR 51.121(r)(2). Specifically, the MOA will include a demonstration that the total permitted NOX emission limits for existing applicable New Jersey non-EGUs does not exceed 745 tons per ozone season (May 1–September 30 of each year). The MOA will also include demonstrations that outline actual NOX emissions from recent ozone seasons (tons/year) and calendar years (tons/year) that were gathered from the State’s Emission Statement Program. Also, the MOA will outline New Jersey’s SIP-approved regulations and associated permit requirements for non-EGU facilities regarding continuous emission monitoring and source emission testing. These demonstrations will be incorporated within the MOA, and the MOA also provides for New Jersey to continue to provide similar reports on ozone season emissions to EPA for each ozone season in perpetuity and to take corrective measures should permitted emissions limits be exceeded. Taken as a whole, EPA believes that in concept, the MOA as described (and if signed and made effective) will address New E:\FR\FM\18JYP1.SGM 18JYP1 Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules khammond on DSKJM1Z7X2PROD with PROPOSALS Jersey’s outstanding obligations under the NOX SIP Call and demonstrates that the removal of New Jersey’s NOX Budget Program (7:27–31) from the SIP will have no consequences for any sources’ operations or emissions or for the attainment or maintenance of the NAAQS in any area, now or in the future. Furthermore, on October 1, 2007, the EPA had approved a sunset provision of New Jersey NOX Budget Program. See 72 FR 55666. This federally-approved sunset provision ended New Jersey’s NOX Budget Program for all sources that were previously covered sources, beginning in 2009. The EPA will take final action to incorporate by reference New Jersey’s MOA in a future rulemaking action. III. Environmental Justice Considerations New Jersey provided a supplement to the SIP submission being proposed for approval with this rulemaking on May 16, 2023. The supplemental submission briefed the EPA on Environmental Justice (EJ) considerations within New Jersey by detailing the State’s programs and initiatives addressing the needs of communities with EJ concerns that have been ongoing since 1998. Although New Jersey included environmental justice considerations as part of its SIP submittal, the CAA and applicable implementing regulations neither prohibit nor require such an evaluation. In its supplement, New Jersey discussed how the State has been addressing the needs of communities with EJ concerns since 1998, including assisting in the creation of the Environmental Equity Task Force, which later evolved into the Environmental Justice Advisory Council (EJAC). EJAC and its predecessor have held regular meetings that include EJ advocates and the New Jersey Department of Environmental Protection (NJDEP) to discuss and address issues of concern. New Jersey has also noted that the State has implemented numerous initiatives, collaborations, Administrative Orders and Executive Orders to address the needs and concerns of overburdened communities. New Jersey provided a timeline of the EJ actions implemented by the State, both prior to the SIP submittal on August 23, 2018, and subsequent to it, to note its continued attention to environmental justice in the State. New Jersey’s Administrative Orders (AO) and Executive Orders (E.O.) include the State’s first EJ E.O. issued by Governor James E. McGreevey in 2004 (E.O. No. 96), an EJ E.O. issued by Governor Jon Corzine in 2009 (E.O. No. VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 131), an EJ AO issued by NJDEP Commissioner Bob Martin in 2016 (AO 2016–08) and an EJ E.O. issued by Governor Phil Murphy in 2018 (E.O. No. 23). Notably, U.S. Senator for New Jersey, Cory Booker, introduced the first Federal EJ bill in 2017 (S.1996– Environmental Justice Act of 2017). Additionally, New Jersey also created the ‘‘What’s In My Community?’’ 13 tool, a GIS-mapping web application that allows a user to see the air permits issued in their community. The tool also identifies overburdened communities, schools, hospitals, and emergency services. The public users can also see measurements from air monitors and generate a report when using the tool. The EPA has reviewed this material but has determined that conducting a comprehensive EJ analysis is not necessary in the context of this SIP submission for the removal from the SIP of New Jersey’s CAIR NOX Trading Program and the State’s NOX Budget Program, as the CAA and its applicable implementing regulations neither prohibit nor require such an evaluation of EJ in relation to the relevant requirements. Additionally, there is no evidence suggesting that this action contradicts the goals of E.O. 12898 or that it will disproportionately harm any specific group or have severe health or environmental impacts. However, the EPA expects that this action, which assesses whether New Jersey’s SIP adequately addresses requirements under the NOX SIP Call for affected non-EGUs, will generally have a neutral impact on all populations, including communities of color and low-income groups. At the very least, it will not worsen existing air quality. In summary, the EPA concludes, for informational purposes only, that this proposed rule will not disproportionately harm communities with environmental justice concerns. New Jersey did evaluate EJ considerations voluntarily in its SIP submission, but the EPA’s assessment of these considerations is provided for context, not as the basis for the action. The EPA is taking action under the CAA independently of the State’s EJ assessment. IV. Statutory and Executive Order Reviews Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the 13 Access the mapping application for locating facilities with an air permit registered with NJDEP’s Division of Air Quality from their website at https:// njdep.maps.arcgis.com/app4s/webappviewer/ index.html?id=76194937cbbe46b1ab9a9ec37c 7d709b. PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 58311 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 proposes to approve 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 Orders 12866 (58 FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 2023); • 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 subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it approves a state program; • 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 Clean Air Act. In addition, this proposed rulemaking action pertaining to New Jersey’s submissions, is not approved to apply on any Indian reservation land or in any other area where the 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). Executive Order 12898 (Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations, 59 FR 7629, Feb. 16, 1994) directs Federal agencies to identify and address ‘‘disproportionately high and adverse human health or environmental effects’’ of their actions on minority populations E:\FR\FM\18JYP1.SGM 18JYP1 58312 Federal Register / Vol. 89, No. 138 / Thursday, July 18, 2024 / Proposed Rules and low-income populations to the greatest extent practicable and permitted by law. EPA defines environmental justice (EJ) as ‘‘the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.’’ EPA further defines the term fair treatment to mean that ‘‘no group of people should bear a disproportionate burden of environmental harms and risks, including those resulting from the negative environmental consequences of industrial, governmental, and commercial operations or programs and policies.’’ The NJDEP evaluated environmental justice as part of its SIP submittal even though the CAA and applicable implementing regulations neither prohibit nor require an evaluation. The EPA’s evaluation of the NJDEP’s environmental justice considerations is described above in the section titled, ‘‘Environmental Justice Considerations.’’ The analysis was done for the purpose of providing additional context and information about this rulemaking to the public, not as a basis of the action. The EPA is taking action under the CAA on bases independent of New Jersey’s evaluation of environmental justice. In addition, there is no information in the record upon which this decision is based that is inconsistent with the stated goal of E.O. 12898 of achieving environmental justice for people of color, low-income populations, and Indigenous peoples. List of Subjects in 40 CFR Part 52 Environmental protection, Air pollution control, Incorporation by reference, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds. Authority: 42 U.S.C. 7401 et seq. Lisa Garcia, Regional Administrator, Region 2. [FR Doc. 2024–15705 Filed 7–17–24; 8:45 am] khammond on DSKJM1Z7X2PROD with PROPOSALS BILLING CODE 6560–50–P VerDate Sep<11>2014 15:57 Jul 17, 2024 Jkt 262001 FEDERAL COMMUNICATIONS COMMISSION 47 CFR Part 8 [PS Docket No. 23–239; DA 24–617; FR ID 229959] Public Safety and Homeland Security Bureau Requests Comment on Implementation of the Cybersecurity Labeling for Internet of Things Program Federal Communications Commission. ACTION: Proposed rule. AGENCY: In this document, the Federal Communications Commission (Commission or FCC) seeks comment on additional items to further the efficient and timely rollout of the IoT Labeling program. These items include the format of Cybersecurity Label Administrator (CLA) and Lead Administrator applications; filing fees for CLA applications; criteria for selecting CLAs and the Lead Administrator; CLA sharing of Lead Administrator expenses; Lead Administrator neutrality; processes for withdrawal of CLA and Lead Administrator approvals; recognition of CyberLABs outside the United States; complaint processes; confidentiality and security requirements; and the IoT registry. DATES: Comments are due on or before August 19, 2024; reply comments are due on or before September 3, 2024. Comments on section II.B are due on or before August 19, 2024. ADDRESSES: Pursuant to §§ 1.415 and 1.419 of the Commission’s rules, 47 CFR 1.415, 1.419, interested parties may file comments and reply comments on or before the dates indicated on the first page of this document. Comments may be filed using the Commission’s Electronic Comment Filing System (ECFS). You may submit comments, identified by PS Docket No. 23–239, by any of the following methods: • Electronic Filers: Comments may be filed electronically using the internet by accessing the ECFS: https:// www.fcc.gov/ecfs/. • Paper Filers: Parties who choose to file by paper must file an original and one copy of each filing. • Filings can be sent by hand or messenger delivery, by commercial courier, or by the U.S. Postal Service. All filings must be addressed to the Secretary, Federal Communications Commission. • Hand-delivered or messengerdelivered paper filings for the Commission’s Secretary are accepted between 8:00 a.m. and 4:00 p.m. by the SUMMARY: PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 FCC’s mailing contractor at 9050 Junction Drive, Annapolis Junction, MD 20701. All hand deliveries must be held together with rubber bands or fasteners. Any envelopes and boxes must be disposed of before entering the building. • Commercial courier deliveries (any deliveries not by the U.S. Postal Service) must be sent to 9050 Junction Drive, Annapolis Junction, MD 20701. Filings sent by U.S. Postal Service First-Class Mail, Priority Mail, and Priority Mail Express must be sent to 45 L Street NE, Washington, DC 20554. • People with Disabilities: To request materials in accessible formats for people with disabilities (braille, large print, electronic files, audio format), send an email to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202–418–0530. FOR FURTHER INFORMATION CONTACT: Tara B. Shostek, Cybersecurity and Communications Reliability Division, Public Safety and Homeland Security Bureau, (202) 418–8130, or by email to Tara.Shostek@fcc.gov. For additional information concerning the Paperwork Reduction Act information collection requirements contained in this document, contact Nicole Ongele, Office of Managing Director, Performance and Program Management, 202–418–2991, or by email to PRA@fcc.gov. SUPPLEMENTARY INFORMATION: This is a summary of the Commission’s document in PS Docket No. 23–239, DA 24–617; released on June 27, 2024. The full text of this document is available at https://docs.fcc.gov/public/ attachments/DA-24-617A1.pdf. Paperwork Reduction Act. The document may contain new or modified information collection(s) subject to the Paperwork Reduction Act of 1995. All such new or modified information collection requirements will be submitted to OMB for review under section 3507(d) of the PRA. OMB, the general public, and other Federal agencies are invited to comment on any new or modified information collection requirements contained in this proceeding. In addition, pursuant to the Small Business Paperwork Relief Act of 2002, we seek specific comment on how we might ‘‘further reduce the information collection burden for small business concerns with fewer than 25 employees.’’ Providing Accountability Through Transparency Act. Consistent with the Providing Accountability Through Transparency Act, Public Law 118–9, a summary of this document will be available on https://www.fcc.gov/ proposed-rulemakings. E:\FR\FM\18JYP1.SGM 18JYP1

Agencies

[Federal Register Volume 89, Number 138 (Thursday, July 18, 2024)]
[Proposed Rules]
[Pages 58306-58312]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-15705]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R02-OAR-2024-0110, FRL-12093-01-R2]


Air Plan Approval; New Jersey; NOX SIP Call and Removal of CAIR

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve the removal of the New Jersey Clean Air Interstate Rule (CAIR 
nitrogen oxides (NOX) Trading Program regulations from the 
New Jersey State Implementation Plan (SIP) and is proposing to 
conditionally approve the removal of the New Jersey NOX 
Budget Program regulations from the New Jersey SIP. On August 23, 2018, 
the New Jersey Department of Environmental Protection (NJDEP) submitted 
a SIP revision requesting the removal of the State's CAIR 
NOX Trading Program and NOX Budget Program 
regulations from the New Jersey SIP. NJDEP submitted a supplement to 
the revision on May 31, 2024, that commits NJDEP to develop a 
Memorandum of Agreement with the EPA that indicates how the State of 
New Jersey will maintain compliance with the State's NOX SIP 
Call obligations for

[[Page 58307]]

the types of large non-electricity generating units (non-EGUs) that 
were previously regulated under the New Jersey NOX Budget 
Program.

DATES: Written comments must be received on or before August 19, 2024.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R02-OAR-2024-0110, at https://www.regulations.gov. Although listed in 
the index, some information is not publicly available, e.g., Controlled 
Unclassified Information (CUI) (formally referred to as 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 electronically through https://www.regulations.gov. Follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. The EPA may 
publish any comment received to its public docket. Do not submit 
electronically any information you consider to be CUI or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. The EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CUI or multimedia submissions, and general 
guidance on making effective comments, please visit https://www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Fausto Taveras, Environmental 
Protection Agency, Region 2, Air Programs Branch, 290 Broadway, New 
York, New York 10007-1866, at (212) 637-3378, or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: The SUPPLEMENTARY INFORMATION section is 
arranged as follows:

I. Background
II. EPA's Evaluation and Proposed Action
III. Environmental Justice Considerations
IV. Statutory and Executive Order Reviews

I. Background

    Under Clean Air Act (CAA or Act) section 110(a)(2)(D)(i)(I), also 
called the good neighbor provision, States are required to address the 
interstate transport of air pollution. Specifically, the good neighbor 
provision requires that each state's implementation plan contain 
adequate provisions to prohibit air pollutant emissions from within the 
state that will significantly contribute to nonattainment of the 
national ambient air quality standards (NAAQS), or that will interfere 
with maintenance of the NAAQS, in any other state. In October 1998 (63 
FR 57356), the 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'' 
(NOX SIP Call).\1\ The NOX SIP Call required 
Eastern States, including New Jersey, to submit SIPs that prohibit 
excessive emissions of ozone season NOX by implementing 
statewide emissions budgets. The NOX SIP Call addressed the 
good neighbor provision for the 1979 ozone NAAQS and was designed to 
mitigate the impact of transported NOX emissions, one of the 
precursors of ozone.\2\ To help implement the NOX SIP Call, 
EPA developed the NOX Budget Trading Program, a regional 
allowance trading program. States could meet most of their obligations 
under the NOX SIP Call by requiring certain types of sources 
to participate in this trading program: generally, EGUs with capacity 
greater than 25 megawatts (MW) \3\ and large non-EGUs, such as 
industrial boilers and combustion turbines, with a rated heat input 
greater than 250 million British thermal units per hour (MMBtu/hr).
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    \1\ The EPA issued subsequent technical amendments to the 
NOX SIP Call in May 1999 (64 FR 26298) and March 2000 (65 
FR 11222).
    \2\ As originally promulgated, the NOX SIP Call also 
addressed good neighbor obligations under the 1997 8-hour ozone 
NAAQS, but EPA subsequently stayed and later rescinded the rule's 
provisions with respect to that standard. See 65 FR 56245 (September 
18, 2000); 84 FR 8422 (March 8, 2019).
    \3\ In some States, EGUs smaller than 25 MW were also part of 
EPA's NOX Budget Trading Program.
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    NJDEP submitted a SIP revision including amendments to the 
regulation N.J.A.C. 7:27-31 (otherwise known as subchapter 31), 
``NOX Budget Program'', on December 10, 1999,\4\ to comply 
with the NOX SIP Call requirements. The EPA approved the 
revision as meeting the requirements of the NOX SIP Call in 
2001. See 66 FR 28063 (May 22, 2001). The approved revision required 
EGUs with capacity greater than 15 MW and large non-EGUs in the State 
to participate in the State's NOX Budget Program beginning 
in 2003.
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    \4\ The SIP revision was further supplemented by New Jersey on 
July 31, 2000.
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    In 2005, EPA published CAIR, which required Eastern States, 
including New Jersey, to submit SIPs that prohibited emissions 
consistent with revised ozone season (and annual) NOX 
budgets. See 70 FR 25162 (May 12, 2005); see also 71 FR 25328 (April 
28, 2006). CAIR addressed the good neighbor provision for the 1997 
ozone NAAQS and the 1997 fine particulate matter (PM2.5) 
NAAQS and was designed to mitigate the impact of transported 
NOX emissions with respect to ozone and PM2.5. 
CAIR established several trading programs that States could join 
through SIPs or that EPA would implement through Federal implementation 
plans (FIPs) for EGUs greater than 25 MW in each affected state; States 
also retained the option to submit SIPs that achieved the required 
emission reductions from other types of sources.\5\ When the CAIR 
trading program for ozone season NOX was implemented 
beginning on January 1, 2009, the EPA discontinued administration of 
the NOX Budget Trading Program; however, the requirements of 
the NOX SIP Call continued to apply. For large non-EGUs that 
would have been covered under the NOX Budget Trading 
Program, States were allowed, but not obligated, to achieve the 
required emissions reductions from these types of units by including 
the units in the CAIR trading program for ozone season NOX.
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    \5\ CAIR had separate trading programs for annual sulfur dioxide 
emissions, seasonal NOX emissions, and annual 
NOX emissions.
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    On October 1, 2007, the EPA approved revisions to New Jersey's SIP 
that used the CAIR FIP trading program for ozone season NOX 
to address the State's obligations under the NOX SIP Call 
related to EGUs. Consistent with CAIR's requirements, EPA approved a 
SIP revision in which New Jersey regulations: (1) adopted State rule 
provisions modifying the allowance allocation provisions of the CAIR 
FIP applicable to New Jersey, and (2) sunset New Jersey's 
NOX Budget Program requirements. See 72 FR 55672. 
Specifically, New Jersey adopted under N.J.A.C. 7:27-30 (otherwise 
known as subchapter 30), the CAIR NOX Trading Program, 
provisions for allocating allowances under the CAIR FIP NOX 
annual and ozone season trading programs.\6\ Additionally, New Jersey 
adopted at N.J.A.C. 7:27-31.23, a sunset provision, which established 
that the Federal CAIR NOX Ozone Season Trading Program as 
modified by New Jersey's SIP revision would replace New Jersey's 
NOX Budget Program (Subchapter 31) starting in 2009.
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    \6\ New Jersey's rule did not modify the CAIR FIP regarding 
SO2.

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[[Page 58308]]

    Participation of New Jersey's EGUs in CAIR's ozone season 
NOX trading program pursuant to a FIP achieved the emissions 
reductions necessary to address the State's obligation under the 
NOX SIP Call for those units. However, consistent with the 
flexibility given to States in the CAIR FIP, New Jersey chose not to 
expand the applicability provisions of CAIR's NOX ozone 
season trading program to include the types of non-EGUs that had been 
included in the State's NOX Budget program.
    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. See North Carolina v. EPA, 531 F.3d 896, 
modified on rehearing, 550 F.3d 1176 (D.C. Cir. 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 to be 
implemented with the NOX annual and ozone season trading 
programs beginning in 2009, and the SO2 annual trading 
program beginning in 2010.
    In response to the D.C. Circuit's remand of CAIR, the EPA 
promulgated the Cross-State Air Pollution Rule (CSAPR) to replace CAIR 
and address good neighbor obligations for the 1997 ozone NAAQS, the 
1997 PM2.5 NAAQS, and the 2006 PM2.5 NAAQS. See 
76 FR 48208 (August 8, 2011). Through FIPs, CSAPR required EGUs in 
Eastern States, including New Jersey, to meet annual and ozone season 
NOX emission budgets and annual SO2 emission 
budgets implemented through new trading programs. CSAPR also contained 
provisions that would sunset CAIR-related obligations on a schedule 
coordinated with the implementation of the CSAPR compliance 
requirements. Following litigation-related delays, EPA stopped 
administering the CAIR trading programs with respect to emissions 
occurring after December 31, 2014, and began implementing the CSAPR 
trading programs with respect to emissions occurring on and after 
January 1, 2015.
    In July 2015, the D.C. Circuit generally upheld CSAPR but remanded 
several state budgets, including New Jersey's ozone season 
NOX budget, to EPA for reconsideration. EME Homer City 
Generation, L.P. v. EPA, 795 F.3d 118, 129-30 (D.C. Cir. 2015). EPA 
addressed the remanded ozone season NOX budgets in the 
Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS (CSAPR 
Update), which also partially addressed Eastern States' good neighbor 
obligations for the 2008 ozone NAAQS. See 81 FR 74504 (October 26, 
2016). The CSAPR Update implemented the budgets through FIPs requiring 
sources to participate in a revised CSAPR NOX ozone season 
trading program beginning with the 2017 ozone season.
    The CSAPR Update was subject to legal challenge in the D.C. 
Circuit. Wisconsin v. EPA, 938 F.3d 303 (D.C. Cir. 2019); see also New 
York v. EPA, 781 Fed. App'x 4 (D.C. Cir. 2019). In response to the 
Wisconsin remand of the CSAPR Update, the EPA promulgated the Revised 
CSAPR Update, which established new or amended FIPs for 12 States, 
including New Jersey. See 86 FR 23054 (April 30, 2021). The FIPs 
required the implementation of revised emissions budgets for EGUs 
beginning with the 2021 ozone season.
    In 2023, the EPA published the Federal Good Neighbor Plan (GNP), 
which established requirements to address 23 States' good neighbor 
obligations for the 2015 ozone NAAQS. See 88 FR 36654 (June 5, 2023). 
Under the FIP requirements for the GNP, EGUs in 22 States, including 
New Jersey, were required to participate in a revised version of the 
CSAPR NOX Ozone Season Group 3 Trading Program beginning in 
the 2023 ozone season.\7\
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    \7\ In response to judicial orders partially staying a separate 
EPA action (88 FR 9336, February 13, 2023) as to 12 States, the EPA 
has issued two interim final rules staying implementation of the 
Good Neighbor Plan's requirements as to the sources in those States. 
See 88 FR 49295 (July 31, 2023); 88 FR 67102 (September 29, 2023). 
On June 27, 2024, the Supreme Court of the United States granted 
stay applications of the Good Neighbor Plan, Ohio et al. v. EPA, 
Nos. 23A349, 23A350, 23A351, and 23A384, 603 U.S._(2024). This does 
not affect the EPA's analysis of New Jersey's NOX SIP 
Call obligations as to non-EGUs discussed in this document.
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    States have options to replace the FIPs promulgated under CSAPR, 
the CSAPR Update, the Revised CSAPR Update, and the GNP with SIP 
revisions, including but not limited to SIP revisions that adopt state 
trading programs substantively identical to and integrated with the 
Federal trading programs established under the FIPs for other States. 
New Jersey has not chosen to submit SIP revisions to replace the FIPs 
issued under these rules, and instead its EGUs have remained subject to 
the respective FIPs.
    Participation by a state's EGUs in the trading programs for ozone 
season NOX under CSAPR, the CSAPR Update, the Revised CSAPR 
Update, or the GNP generally addresses the state's obligation under the 
NOX SIP Call for EGUs, but these trading programs no longer 
include an option specifically designed to allow States to address 
their obligations under the NOX SIP Call for non-EGUs by 
requiring the non-EGUs to participate in the trading programs.\8\ The 
GNP required that certain types of non-EGUs \9\ in 20 States, including 
New Jersey, reduce NOX emissions through emissions 
limitations and associated requirements beginning in the 2026 ozone 
season. However, it is important to note that the types of non-EGUs 
regulated under the NOX SIP Call and under the GNP do not 
fully overlap, and the forms of the requirements are different. EPA has 
not made any finding that compliance with the GNP's requirements by the 
types of non-EGUs in a state subject to that rule addresses the state's 
obligations with respect to the types of non-EGUs in the state affected 
under the NOX SIP Call.
---------------------------------------------------------------------------

    \8\ While some NOX SIP Call States elected to use the 
specifically designed SIP revision option of this nature provided 
under CAIR, other States (including New Jersey) did not, and the 
option was removed under CSAPR. A similar specifically designed SIP 
revision option was provided under the CSAPR Update and the Revised 
CSAPR Update, but no States elected to use it, and it was removed 
under the GNP. Any future SIP revision seeking to address a state's 
NOX SIP Call obligations for non-EGUs by requiring the 
non-EGUs to participate in one of these trading programs will be 
evaluated on a case-by-case basis. See 88 FR at 36844.
    \9\ These industrial source types are: reciprocating internal 
combustion engines in Pipeline Transportation of Natural Gas; kilns 
in Cement and Concrete Product Manufacturing; reheat furnaces in 
Iron and Steel Mills and Ferroalloy Manufacturing; furnaces in Glass 
and Glass Product Manufacturing; boilers in Iron and Steel Mills and 
Ferroalloy Manufacturing, Metal Ore Mining, Basic Chemical 
Manufacturing, Petroleum and Coal Products Manufacturing, and Pulp, 
Paper, and Paperboard Mills; and combustors and incinerators in 
Solid Waste Combustors and Incinerators.
---------------------------------------------------------------------------

    New Jersey provided a SIP submittal on August 23, 2018, to EPA 
requesting removal of the State's CAIR NOX Trading Program 
(Subchapter 30) and the State's NOX Budget Program 
(Subchapter 31) from the New Jersey SIP. As previously mentioned in 
this section, EPA has already approved into the SIP a sunset provision 
of Subchapter 31. The approved sunset provision ended New Jersey's 
NOX Budget Program for all sources that were previously 
covered sources, beginning in 2009.
    Since New Jersey's large non-EGUs no longer participate in a 
NOX ozone season trading program, the NOX SIP 
Call regulations at 40 CFR 51.121(r)(2) as well as anti-backsliding 
provisions at 40 CFR 51.905(f) and 40 CFR 51.1105(e) require the State 
to meet its ongoing obligations under the NOX SIP Call with 
respect to these types of non-EGUs in some other way.
    Under 40 CFR 51.121(f)(2) of the NOX SIP Call 
regulations, where a state's SIP

[[Page 58309]]

contains control measures for EGUs and large non-EGU boilers and 
combustion turbines, the SIP must contain enforceable limits on the 
ozone season NOX mass emissions from these sources. In 
addition, under 40 CFR 51.121(i)(4) of the NOX SIP Call 
regulations as originally promulgated, the SIP also had to require 
these sources to monitor emissions according to the provisions of 40 
CFR part 75, which generally entails the use of continuous emission 
monitoring systems (CEMS). New Jersey triggered these requirements by 
including control measures in its SIP for these types of sources, and 
the requirements have remained in effect despite the discontinuation of 
the NOX Budget Trading Program after the 2009 ozone season.
    On March 8, 2019, EPA revised some of the regulations that were 
originally promulgated in 1998 to implement the NOX SIP 
Call.\10\ The revision gave States covered by the NOX SIP 
Call greater flexibility concerning the form of the NOX 
emissions monitoring requirements that the States must include in their 
SIPs for certain emissions sources. The revision amended 40 CFR 
51.121(i)(4) to make 40 CFR part 75 monitoring, recordkeeping, and 
reporting optional, such that SIPs may establish alternative monitoring 
requirements for NOX SIP Call units that meet the general 
requirements of 40 CFR 51.121(f)(1) and (i)(1). Under the updated 
provision, a state's implementation plan still needs to include some 
form of emissions monitoring requirements for these types of sources, 
consistent with the NOX SIP Call's general enforceability 
and monitoring requirements at Sec.  51.121(f)(1) and (i)(1), 
respectively, but States are no longer required to satisfy these 
general NOX SIP Call requirements specifically through the 
adoption of 40 CFR part 75 monitoring requirements.
---------------------------------------------------------------------------

    \10\ See ``Emissions Monitoring Provisions in State 
Implementation Plans Required Under the NOX SIP Call,'' 
84 FR 8422 (March 8, 2019).
---------------------------------------------------------------------------

    On March 7, 2024, New Jersey submitted a letter to the EPA 
committing to develop a Memorandum of Agreement (MOA) between the EPA 
and the NJDEP that outlines how NJDEP will comply with the 
NOX SIP Call, specifically for the types of non-EGUs that 
were previously regulated by the New Jersey NOX Budget 
Program and were not included in the subsequent CAIR FIP trading 
program. Subsequently, on May 31, 2024, New Jersey submitted an updated 
commitment letter to revise and replace the previous March 7, 2024, 
letter. The need for this revision arose because NJDEP conducted an 
analysis to determine what units would have been classified as a non-
EGU under the applicability criteria of the New Jersey NOX 
Budget Program (N.J.A.C. 7:27-31), as in effect as of September 30, 
2008. As a result of this analysis, the value of the non-EGU budget was 
adjusted.\11\ The revised letter adjusted the non-EGU budgets for the 
affected units' aggregated emissions during the ozone season and 
revised the date by which the State will submit the MOA to the EPA. 
Both of the NJDEP commitment letters are included in the docket for 
this rulemaking.
---------------------------------------------------------------------------

    \11\ NJDEP analysis determined that the natural gas turbine unit 
located at cogeneration facility, EF Kenilworth, was subject to the 
NOX Budget Program as a small EGU (i.e., an EGU serving 
an electricity generator with nameplate capacity of at least 15 MW 
but not greater than 25 MW).
---------------------------------------------------------------------------

    In the May 31, 2024, letter, NJDEP commits to submitting the MOA to 
the EPA by no later than March 7, 2025. New Jersey provided a date 
certain for purposes of CAA 110(k)(4), which authorizes the EPA to 
conditionally approve a plan revision based on a commitment by the 
state to adopt specific enforceable measures by a date certain but not 
later than one year after the date of the plan approval. In their 
letter to the EPA, NJDEP indicated that it was their understanding that 
the EPA would approve the MOA as an enforceable SIP revision by no 
later than one year from the date the EPA conditionally approves the 
New Jersey SIP Revision--Removal of CAIR and NOX Budget 
Programs, which was submitted on August 23, 2018.
    NJDEP indicated in their commitment letters that the non-EGUs no 
longer in the NOX trading program will not be subject to the 
monitoring, recordkeeping, and reporting requirements in 40 CFR part 
75, and instead will rely on the emission statement reporting (7:27 
Subchapter-21) and emissions limits in their NOX RACT rules 
(7:27 Subchapter-19) as reflected in sources' air permits to continue 
to meet and demonstrate compliance with the non-EGU portion of the 
budget set under the State's former NOX Budget Program. The 
MOA will serve to memorialize an aggregate state-wide budget and 
monitoring and reporting requirements for the affected non-EGU units, 
as well as official annual ozone season NOX reporting by the 
state to the EPA.
    Specifically, NJDEP indicated in their commitment letter to the EPA 
that the MOA will specify how the emission limits and monitoring, 
recordkeeping, and reporting requirements for sources covered by the 
SIP are sufficient to meet the NOX SIP Call requirements for 
these types of sources. The MOA would specify that NOX 
emissions in tons will be determined from non-EGUs during the ozone 
season via CEMS or stack testing already required pursuant to N.J.A.C. 
7:27-19.17, ``Source emission testing,'' and reported via NJ's Emission 
Statement Program (N.J.A.C. 7:27-21). The stack testing frequency, 
which is specified in the operating permit, shall require a new stack 
test at least every five years. The MOA would provide that annual and 
ozone-season emissions data will be collected each year, and NJDEP will 
report that information to EPA for each year in a format that allows 
for EPA to verify compliance with the NOX SIP Call. The MOA 
would specify that the types of non-EGUs subject to the MOA are 
existing, modified, and new fossil fuel-fired boilers and combustion 
turbines with maximum design heat input greater than 250 mmBtu/hr, 
except electricity generating units required to participate in the 
CSAPR NOX Ozone Season Group 3 Trading Program (40 CFR part 
97, subpart GGGGG) or a successor trading program for seasonal 
NOX emissions. The MOA would specify that the affected 
units' aggregated emissions will not exceed a non-EGU emissions budget 
of 745 tons per ozone season (May 1-September 30 of each year).\12\
---------------------------------------------------------------------------

    \12\ The 745 tons of NOX per ozone season limit 
corresponds to the portion of the State's trading budget assigned to 
non-EGUs of the types previously regulated under the New Jersey 
NOX Budget Program (N.J.A.C. 7:27-31) as in effect as of 
September 30, 2008.
---------------------------------------------------------------------------

    The commitment letter indicated that the MOA will be made available 
for public comment and will be submitted as a SIP revision to the EPA. 
Once the MOA is signed by both NJDEP and the EPA, and the approval of 
the MOA as a part of New Jersey's SIP is finalized, the MOA will become 
an enforceable part of the SIP, and the EPA and the NJDEP will have 
authority to enforce the conditions in the MOA (along with 
corresponding SIP-approved requirements applicable to the relevant 
sources). The MOA will establish the mechanism by which New Jersey will 
report to EPA consistent with its own obligations under the 
NOX SIP Call, and to ensure compliance with the budget per 
40 CFR 51.121(r).

II. EPA's Evaluation and Proposed Action

    On August 23, 2018, NJDEP submitted a SIP revision requesting that 
EPA update the New Jersey SIP to reflect the removal of New Jersey's 
CAIR NOX Trading Program establishing the State's allowance 
allocations under the Federal CAIR trading programs (Subchapter 30)

[[Page 58310]]

and New Jersey's NOX Budget Program (Subchapter 31) from the 
SIP. The State rule provision sunsetting the State's NOX 
Budget Program was already approved into the SIP by EPA in 2007, and 
the State's CAIR allowance allocation rules have had no effect since 
EPA discontinued administration of the Federal CAIR trading programs 
after 2014. NJDEP repealed Subchapter 30 and Subchapter 31 on December 
14, 2017.
    As discussed previously in Section I, NJDEP provided commitment 
letters to the EPA on March 7, 2024, and May 31, 2024, committing to 
develop a MOA between the EPA and the NJDEP that outlines how NJDEP 
will comply with the State's obligations under the NOX SIP 
Call for the types of non-EGUs that were previously regulated by the 
New Jersey NOX Budget Program and that were not included in 
the subsequent CAIR FIP trading program. Once approved into the New 
Jersey SIP, the MOA will ensure compliance with the New Jersey non-EGU 
budget per 40 CFR 51.121(r). Specifically, the MOA will serve as the 
enforceable mechanism for ensuring the New Jersey SIP contains 
enforceable limits and monitoring, recordkeeping, and reporting 
requirements to ensure the affected New Jersey non-EGU units' 
aggregated emissions will not exceed a budget of 745 tons per ozone 
season on an annual basis for existing and new units.
    First, the EPA proposes to approve the removal of the New Jersey 
CAIR NOX Trading Program (Subchapter 30) from the New Jersey 
SIP. The State rule only established allowance allocations for use 
under the Federal CAIR trading programs. Because the EPA no longer 
administers the Federal CAIR trading programs, the removal of 
Subchapter 30 from the SIP will have no consequences for any sources' 
operations or emissions or for the attainment or maintenance of the 
NAAQS in any area, now or in the future.
    Second, the EPA is proposing to conditionally approve the removal 
of the New Jersey NOX Budget Program (Subchapter 31) from 
the New Jersey SIP. Although EPA no longer administers the 
NOX Budget Trading Program and approved the sunset provision 
of the New Jersey NOX Budget program in a previous action 
(see 72 FR 55672), New Jersey has outstanding obligations under the 
NOX SIP Call. Accordingly, on May 31, 2024, NJDEP submitted 
a letter committing NJDEP to submit an MOA that will outline how NJDEP 
will comply with the NOX SIP Call for the types of non-EGUs 
previously regulated by the New Jersey NOX Budget Program by 
March 7, 2025.
    Under CAA section 110(k)(4), conditional approval is an option for 
EPA SIP approvals based on a commitment to adopt specific enforceable 
measures by a date certain, but no later than one year from the date of 
approval. If the state fails to meet its commitment within the 
specified date, the approval is treated as a disapproval.
    Since the MOA between NJDEP and the EPA will be enforceable only 
when approved by the EPA and codified through incorporating by 
reference in the EPA-approved statutes and regulations in the New 
Jersey SIP at 40 CFR 52.1570, it will be necessary for the EPA to take 
this action no later than one year from the date of the conditional 
approval.
    Based on the State's May 31, 2024, commitment to submit a SIP 
revision by March 7, 2025, addressing the identified deficiency and the 
EPA taking action to approve the MOA as an enforceable SIP revision no 
later than one year from the date the EPA finalizes a conditional 
approval, EPA is proposing to conditionally approve the portion of the 
August 23, 2018, SIP revision requesting the removal of the New Jersey 
NOX Budget Program (Subchapter 31) from the New Jersey SIP. 
EPA will take action to approve or disapprove the MOA into the New 
Jersey SIP when it is submitted to the EPA as a SIP revision.
    However, if the State fails to submit this revision, or if EPA does 
not approve the MOA as an enforceable SIP revision on or before 12 
months from the date of final approval of this action, the conditional 
approval will become a disapproval and the EPA will issue a notice to 
that effect. If the conditional approval becomes a disapproval, the 
disapproval triggers the requirement for EPA to issue a Federal 
implementation plan (FIP) under CAA section 110(c) to correct the 
deficiency.

Section 110(l) Demonstration

    As stated in New Jersey's May 2024 commitment letter, the State 
commits to enter a Memorandum of Agreement between the USEPA and the 
NJDEP that outlines how NJDEP will comply with the NOX SIP 
Call, specifically for the types of non-electric generating units (non-
EGUs) that were previously regulated by the New Jersey NOX 
Budget Program (N.J.A.C. 7:27-Subchapter 31) and that were not included 
in the subsequent CAIR FIP trading program. On June 19, 2007, New 
Jersey adopted rules establishing allowance allocations for the State's 
EGUs participating in the ozone season NOX trading program 
established under the CAIR FIP but excluded non-EGU industrial units 
from its rulemaking. Under both the NOX Budget Program and 
CAIR, the affected units were required to monitor pursuant to 40 CFR 
part 75. The EGUs that remained in the CAIR trading program continued 
to comply with the monitoring requirements. However, because the EPA 
approved the sunset of the State's NOX Budget Program 
requirements in the SIP and the non-EGUs were not brought into the CAIR 
FIP trading program, the non-EGUs did not retain those monitoring 
requirements. Instead, applicable non-EGUs relied on monitoring 
requirements under New Jersey's emission statement program (N.J.A.C. 
7:27-21), the State's various NOX RACT regulations (N.J.A.C. 
7:27-19), and associated air permits to continue to demonstrate 
compliance with the 745 tons per ozone season budget set under the 
NOX Budget Program.
    The MOA will serve to memorialize an aggregate state-wide budget 
and monitoring and reporting requirements for the affected non-EGU 
units as well as official annual ozone season NOX reporting 
by the State to the EPA. Specifically, the MOA will specify that the 
non-EGU budget for the affected units' aggregated emission will not 
exceed 745 tons per ozone season (May 1-September 30 of each year). To 
ensure that non-EGUs satisfy the requirements under the NOX 
SIP Call, the MOA will specify how the emission limits and monitoring, 
recordkeeping, and reporting requirements contained in New Jersey's SIP 
address the requirements under 40 CFR 51.121(r)(2). Specifically, the 
MOA will include a demonstration that the total permitted 
NOX emission limits for existing applicable New Jersey non-
EGUs does not exceed 745 tons per ozone season (May 1-September 30 of 
each year). The MOA will also include demonstrations that outline 
actual NOX emissions from recent ozone seasons (tons/year) 
and calendar years (tons/year) that were gathered from the State's 
Emission Statement Program. Also, the MOA will outline New Jersey's 
SIP-approved regulations and associated permit requirements for non-EGU 
facilities regarding continuous emission monitoring and source emission 
testing. These demonstrations will be incorporated within the MOA, and 
the MOA also provides for New Jersey to continue to provide similar 
reports on ozone season emissions to EPA for each ozone season in 
perpetuity and to take corrective measures should permitted emissions 
limits be exceeded. Taken as a whole, EPA believes that in concept, the 
MOA as described (and if signed and made effective) will address New

[[Page 58311]]

Jersey's outstanding obligations under the NOX SIP Call and 
demonstrates that the removal of New Jersey's NOX Budget 
Program (7:27-31) from the SIP will have no consequences for any 
sources' operations or emissions or for the attainment or maintenance 
of the NAAQS in any area, now or in the future. Furthermore, on October 
1, 2007, the EPA had approved a sunset provision of New Jersey 
NOX Budget Program. See 72 FR 55666. This federally-approved 
sunset provision ended New Jersey's NOX Budget Program for 
all sources that were previously covered sources, beginning in 2009. 
The EPA will take final action to incorporate by reference New Jersey's 
MOA in a future rulemaking action.

III. Environmental Justice Considerations

    New Jersey provided a supplement to the SIP submission being 
proposed for approval with this rulemaking on May 16, 2023. The 
supplemental submission briefed the EPA on Environmental Justice (EJ) 
considerations within New Jersey by detailing the State's programs and 
initiatives addressing the needs of communities with EJ concerns that 
have been ongoing since 1998. Although New Jersey included 
environmental justice considerations as part of its SIP submittal, the 
CAA and applicable implementing regulations neither prohibit nor 
require such an evaluation.
    In its supplement, New Jersey discussed how the State has been 
addressing the needs of communities with EJ concerns since 1998, 
including assisting in the creation of the Environmental Equity Task 
Force, which later evolved into the Environmental Justice Advisory 
Council (EJAC). EJAC and its predecessor have held regular meetings 
that include EJ advocates and the New Jersey Department of 
Environmental Protection (NJDEP) to discuss and address issues of 
concern.
    New Jersey has also noted that the State has implemented numerous 
initiatives, collaborations, Administrative Orders and Executive Orders 
to address the needs and concerns of overburdened communities. New 
Jersey provided a timeline of the EJ actions implemented by the State, 
both prior to the SIP submittal on August 23, 2018, and subsequent to 
it, to note its continued attention to environmental justice in the 
State.
    New Jersey's Administrative Orders (AO) and Executive Orders (E.O.) 
include the State's first EJ E.O. issued by Governor James E. McGreevey 
in 2004 (E.O. No. 96), an EJ E.O. issued by Governor Jon Corzine in 
2009 (E.O. No. 131), an EJ AO issued by NJDEP Commissioner Bob Martin 
in 2016 (AO 2016-08) and an EJ E.O. issued by Governor Phil Murphy in 
2018 (E.O. No. 23). Notably, U.S. Senator for New Jersey, Cory Booker, 
introduced the first Federal EJ bill in 2017 (S.1996-Environmental 
Justice Act of 2017).
    Additionally, New Jersey also created the ``What's In My 
Community?'' \13\ tool, a GIS-mapping web application that allows a 
user to see the air permits issued in their community. The tool also 
identifies overburdened communities, schools, hospitals, and emergency 
services. The public users can also see measurements from air monitors 
and generate a report when using the tool.
---------------------------------------------------------------------------

    \13\ Access the mapping application for locating facilities with 
an air permit registered with NJDEP's Division of Air Quality from 
their website at https://njdep.maps.arcgis.com/app4s/webappviewer/?id=76194937cbbe46b1ab9a9ec37c7d709b.
---------------------------------------------------------------------------

    The EPA has reviewed this material but has determined that 
conducting a comprehensive EJ analysis is not necessary in the context 
of this SIP submission for the removal from the SIP of New Jersey's 
CAIR NOX Trading Program and the State's NOX 
Budget Program, as the CAA and its applicable implementing regulations 
neither prohibit nor require such an evaluation of EJ in relation to 
the relevant requirements. Additionally, there is no evidence 
suggesting that this action contradicts the goals of E.O. 12898 or that 
it will disproportionately harm any specific group or have severe 
health or environmental impacts.
    However, the EPA expects that this action, which assesses whether 
New Jersey's SIP adequately addresses requirements under the 
NOX SIP Call for affected non-EGUs, will generally have a 
neutral impact on all populations, including communities of color and 
low-income groups. At the very least, it will not worsen existing air 
quality.
    In summary, the EPA concludes, for informational purposes only, 
that this proposed rule will not disproportionately harm communities 
with environmental justice concerns. New Jersey did evaluate EJ 
considerations voluntarily in its SIP submission, but the EPA's 
assessment of these considerations is provided for context, not as the 
basis for the action. The EPA is taking action under the CAA 
independently of the State's EJ assessment.

IV. Statutory and Executive Order Reviews

    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 proposes to approve 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 Orders 
12866 (58 FR 51735, October 4, 1993) and 14094 (88 FR 21879, April 11, 
2023);
     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 subject to Executive Order 13045 (62 FR 19885, 
April 23, 1997) because it approves a state program;
     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 Clean Air Act.
    In addition, this proposed rulemaking action pertaining to New 
Jersey's submissions, is not approved to apply on any Indian 
reservation land or in any other area where the 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).
    Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
Feb. 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on minority populations

[[Page 58312]]

and low-income populations to the greatest extent practicable and 
permitted by law. EPA defines environmental justice (EJ) as ``the fair 
treatment and meaningful involvement of all people regardless of race, 
color, national origin, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies.'' EPA further defines the term fair treatment to mean that 
``no group of people should bear a disproportionate burden of 
environmental harms and risks, including those resulting from the 
negative environmental consequences of industrial, governmental, and 
commercial operations or programs and policies.''
    The NJDEP evaluated environmental justice as part of its SIP 
submittal even though the CAA and applicable implementing regulations 
neither prohibit nor require an evaluation. The EPA's evaluation of the 
NJDEP's environmental justice considerations is described above in the 
section titled, ``Environmental Justice Considerations.'' The analysis 
was done for the purpose of providing additional context and 
information about this rulemaking to the public, not as a basis of the 
action. The EPA is taking action under the CAA on bases independent of 
New Jersey's evaluation of environmental justice. In addition, there is 
no information in the record upon which this decision is based that is 
inconsistent with the stated goal of E.O. 12898 of achieving 
environmental justice for people of color, low-income populations, and 
Indigenous peoples.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Ozone, Reporting and recordkeeping requirements, Volatile 
organic compounds.

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

Lisa Garcia,
Regional Administrator, Region 2.
[FR Doc. 2024-15705 Filed 7-17-24; 8:45 am]
BILLING CODE 6560-50-P
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