25262 Federal RegisterlVol, 70, No. 91/Thursday, May 22. 20051Rdes and ReguIations

emissions In 0 tvny that i ~ ~ a t c h ~ s or approachm a5 dosely as possibIu the coflainly provided by tho part 75 momred data farEGUs. For t h e soureos, States must ostirnam historid baseline smissions using snurcespecllic or catogo~y-specfie data and assumptions thnt onsure B source's or sourco entegory's aclual emissions am not overestimated. To determine !he baselino for s o w o s

&at do not have part 75 measured data, States must u s n emfsfon lactors that m r a !hst omissions am not overestimated [e.& omission factors at the low end or a m g a when EPA guidance presents a m q e l or tha State must mvida additiand infonation fkat s k ~ w s with reasonabls coaEdence that another vahe is more appropriate for estimating actual emissiws, Othes monitoring or stack te5tIns data mn be mnnsIdsnd. bat care must be taken not to overestimate basetinas. If a production or utiIizaLIon factor I5 pari of th6 hfstorical baseha emissions ealeulatIon, a factm that msums &at emissions arn not wvorwhated must ha used, or additinnal data must be pmvided- Similarly, i la control or d e e&etiveness factor enters into tho estimata of hitarid b a s e h e Bmfssions, such a factor must be matistie md supporled by f a a s or annlysk. For these factors. a high d u e [closer t o 100 p m n t control and PEectiveness) B~UUT~S !hat emissIm5 ma not ovemstirnated. Ii. ProjactIons ~ F Z O I O and 2015 Rwdnes

Ths second stop in quanlJfyiug SOZ or NOx amissbns roductioas for non-EGUs is to use the historical baseline amlsslons and pm ect omissions that

without the CAUL Thb step results in the 2010 rind z01s basalinn omissions &mates.

The EPA proposed and requested commont on two prncdures far estimating the future basehw: one relies on projdons b a r d on a number oFestImated pnrarnettars: tho second 3151s the lower of thk pmjaction and actual historld smissioas. Todny. EPA finalizas tbe semnd apprrrach for datormining 2010 and 2015 omissions baself MS. To astimate- fWm emissions, States

must usa stab-of-tha-art rnsthads for pmjocting the sourco or s o m o category's ecnnamlc output, Emnomlc and popuIatinn forecasts must ba as specific a5 pussiblo to th8 appliwbla industry, SI6tO. and county of the soum and must be consistent with bath national projactionr; and relevant oKcial planning assumptions, Inc lud i

would be expocte d In 2010 md 2035

estimates d p o ulation and vehicle

ennsultatIon betwain State nnd local transportation and air quality agancies. However, if thwa oflicid planning assumptions are themsdvos hwnsistenl with oficial US, Census projttctlans uf population orwith energy consumption pr~jedIms contained in the most recont Annual Energy Outlonk published by tha U.S. Department of Enorgy, then adjustmants must be made to corroct &e inconsIstmcy, or L e SIP must demonstrate how the olficid planning asrmmptinns are mora ~ccurato. If the State expects changes in produetion method, materials, fuels. or sEficiesley to occur between the basdin8 yew end 2010 nr 2015. the State must account fortkese cbangm in the projmtad 2010 and 2015 baseline srdssions. For example. if 8 SO- has publrdy announced B change or applied for a p m l t fora change, it shouId bo reflected in tha proJeetians, The projection must aIso reflect any adopted regulatims that am ineligihIe conh? measma snd that rvlll affect sauce

As statad above, EPA is mquirimg States to use the lower of historical baseline emissions or pmjected m a ar z015 emIssIons, BS applicabls, €or a SOWEB catqory, This i s because changss in produdon method. msladals, fuels, or efficiency onan play a key rolo in changes in emissions, Because of factors such as thasa. emlsdms can aRaa stay the Sama or even decmtlse as productivity wItlrIa a sectot increases. ness factos that contribute to arnIssIon decreases can be very difficult lo guantlfy. UndetestImating the impct af these typos of factors ean vow easily result in a prn ection furiacmsad

correct estimate wiIi mlt in a projection for decreased emissions wIWn the sactor, A few cornmentors npposed this mathodology as arbitrarp but failed to explain why EFA's eoncems,as described above. m not valid. Cornmantea also Failad to propose other methodologias for addrossin6 these concims. Thus, EPA is finalizing the use ofthk second methodology. ICi, Contmllod Emissions ktimnt6s Tor 2 0 f U ~ d Z O l 5 1118 thud stap is to devnlop ths ~ 0 1 0

and 2015 controlled edssioas Bstrmates by assuming &e m e Ehnngos in seonomic output and otber factors listed above but adding the effacts of the new conttnls adopted lor tha purposc of meeting the W Tbe controls may take &a form af regulatory requirnmants, e-g., odsslons caps,

miles traveled i ~velopad through

fl IU k- 5 5 0 llS I

emissions wi d in a s~ctor. when a

emission rats limits, technology requirements, or work practice requirements. Tho Stato's Bstimata of the e&& of the cnntrol regulations must be mdI5tic in light of the specific provbions for monitoring, reporling. and anfurcement and experianee with similar togulatory a proachas. In additlon, tha &ate's analysis must

oxamino the possibilty that the controls may muso pruduclfon and missions to shin to uaregulat~d or lass smgenrly reguhfod SOWS In tho same Siata or another Stata If all s o w of a source mategory (dofinad to include all: souras whore any aspect of production is remnBIy Interchmgeabh) within the Steto are regulated wilh tb s a m sh-hgenq and EclmpIianeu ~ ~ m n c o pmvklons, the enalysIs of pradudion and smissions shifts mad onSy consider the possibility o€shSfk to o h r Statu. If only a portion ora source category within n Sttrte Ss r e p h a d . L o analyris must obo iacluds an indtate shifting.

2010 and 2015, asnrmplInns rogardins contrd measures thnt am not digible far CAIR raduction credit must bo he s ~ m a as in the 2010 end 2015 baseline d m s t e s . Far example S

content of nonroad diesel fuel &at am requlrad under &B recant Federal nonmad fd ntIe (69 FR 38958: June 29, 2004], By indudhg the e&d oft& Fedaral rule in both tha basntine and controllad emissions esstimatos for 2010 end 201 5, the Stata Will a prOpriatO~y exclude this hndigibls refuctlon when it su%tmcts the wnmlled emissions estirnetes born the baseline ernIssi~ns

In d m a t i n g contzol r ed emissions in

teke adit for mductims a in late the "9 su fur nat

,&at we aIa today specifies tha 2010 and 2b10f5- emlssbnsredudions whtch can be counted toward satIsIying thn CAlk Tho method mquires the use of h e historical baselinne or the baseline emission astimatas. whichever is Iowcr. That is. the reduction Is calculated as folbws: Lil For 2D30, tha dlffarencn bewean iho lower of historical basollna or 2010 basalinn emissions asilmates and !h~ 20111 eonballed omissians &mates, minus any amissions that may shift tu othor s o u m s mlker than he eliminated: and [ii) for 2015, the d1Kmnco between the lower ofhistorial basoline w 2015 b8sdIne arnissIons estimates and the 2015 mntrollod emissions &hnatos, minus m y omissions that may shift ia othersnums rathw than be fiminatnd. 4, Conk& on Nan-EGUs Only

Aihough WP stated that we b e l i m 3t is unlikaly Statas may choose to eon!rol only non-EGUs, we propsad In the CARSNPR provisIms for determining

673 Federal Ilegister!Vol. 70, No. 9lIThursday. May 12, 20051RuIes and Rogulatioas 25263

tho specifind omfssions rductions that must be obtained if Sktes U T S U ~ this

it i s unlikaly is r k d an States' smisdolls profiles. Most SOz amissfom are corn EGUs and therefore it I s unlIkeIy tha! a State can nchinve the q u l r e d emissions reductions without regulating EGUs to soma degree. In addition. SO: emissions reduetInns from EGUs am highly cost a f h d v a Stafes

tho amuunt olwn-EGU reduEtioM Is nquivdnnt to all o r b emksions reductions that wouId have b a ~ n requtmd from EGUs had the State chosen IO assign all &E missions reduelions toU;Ur;. For SO: omissium, this amount in 2010 w o l d be 50 percant d a State's titlo Tv SO1 dlocattans Tor rill mils in the Skte and. for2015,65 pflrcent ofsuch alhalions, Far NOx missions, this amount would be tho difierance batwsen a Stata'sEGU budget for NOx under tha CtuR and its NOx baseline EGU amiss10ns inventory as projectad In tho Integmtod P I a ~ l n g Madel [PM] for 2010 and 2015, resp e d v d y.llz In additlon, the smereq~remonts

described dsatuhmin this pnrt of toda 's proambla regarding the ali&lily of non-EGU mductf nns, smissians wnbd and monttorhg, omissions Invontodes and demonsmation of reduelfons, will apply to the situation tvhema Stato chooses to cmbd only non-EGUs. 5, Use ofBankad Allowances and tho CompIIanco Supplement Po01 In fhe CARNPR, EFA stated that

Statas may dIow EGUs to demonstrate complance with tha Slats EGU SO2 bndg~t by using titla Tv allowances 01 t h a t ~ 0 r e b d e d , or (ii] that were obtained in the currant year 6nm souc~os in other Statas (69 FR4827). Tho EPA adapts this provision in ioday's action. T ~ B EPA ad~ppts a simitar praviston for tho use Ofb8nkBd NOx SIP Call alIowances (pretOO91 lo domonstrate compliance wilh the State EGU omna season NO, budgat. Stlo also tho CAlR NPR I69 FR 4633). Themhm, State mlcs may allow t h ~ use olpm- 2010 rille N and pram2009 NOx SIP Call aliowmcm banked in the t i t l e IV and NOX SIP Call trading programs for compliance in the CAIR. States

CAR trading programs must d a w the

ellernadva, and wo adopt i os8 pmvhions tad8 Th8 MaSPn W8 thhk

tbnt ChOOSe this path Must anSW that

pdcipaling in the EPA-adminisbred

usu orthese pm-20111 title iV alIowanm or pm-2009 NOX SIP Call allowances in accordante with PA'S modal trading

Addiff onally. Siatw with annual NOx reduction raquirarnents may USE compliance supplsment pool (CSP) allowances as described in sections W and MU. Distribution of fhe CSP Is essrtntfdy the Same a5 tho proem usod in tha NO, SIP Call, thmugh una orbnth oftwo mwhanjsms. Status may distribut~ CSP dhwances on a pmrata basis to sources ihal Implement NUX control measurns rasulting in radudons fn 2007 or 2008 that BTB hogond what is required by any ap Iicabls Slate or Faded amfssi~ns fImitaUon (early reductions]. The second CSP distributhn mafihanlsm that a Statu can u5e is to issue CSP allowances bwed m the damonstration ora nend bran exiension of the 2009 deadline for implamenting emisston eonhIs. The domonstration must &how unacceptablo rkk elther to a sourea's own opmtiun or its assodated Industy-for EGUs, powar suppl reliability, fornon-EGUs rbk compa&ls 10 that dascribed for the electridty fndus 57356 for furthor % mssfon of thew

rUlSS,

Ses also 63 FR

annual fiOx CSP dlowanms can all be counted toward a Shies olforts to a c h i w ~ its CAR mduEtron obligations mgardbss ofivb&mr tba CAR madig programs ore used or not. E. Shf8 Implementu!ion Plan Schedules I. State Implomantation PIan

Submission Sehndulo In the NPR, we pmposed to requira

States to submit SIPs to address interstate transport in amrdancB with the provisions o f t b i rule approximately 18 months &am the dale of this Em1 rule (69 FR46241. ARer w d d consideration of the comments w0 received concerning tbIs Issue, WB have concluded &at Stabs should submit SIPS ta salI5fy this final rule as expeditiously RS posslbla, but no latar than 18 rnantbs fiom the date of today's d o n , Undor this schedule, upwhd Statos' transp~rt Sips to meot W s d o n 110(0][2]~~ will be due before &a downwind Stales' PMM and 8-hnur omne nonatta'mmt area SIP5 undar C M section 172[b). We expect that the downwind Stales' 8-hour ozone nonattainmant wen SIPS will b3 due by ]una 15'20D7. and theh PMu nonaltarnmant SIPS will ba due by April 5,2I100."5

We believe that this saquanca for SIP submissions to addrass upwind intorstate transport and downwind noantlainrnent areas i s consistent both with the a p p l i d e provisions of &ha CAA and with sound p ~ l i ~ y ubjecthes. Tbe CAA provides forms se uance OF submissions in sedon ,,O[&] and (a)[2), which pmvids that the submltlal period for SIPs mquired by seetion rro[a)[zllDl rum fmm ths d i m data nf tho NAAQS mvision, and in soctIon 17Z@], whlch provides &at t h e submittal p d o d €or the nonattdnment arm SPs a s horn t h ~ kter dah of

IlO[a)[ll raquiFes sa& Stato io submit a SIP to EPA "wmn 3 yoars a * * a b r the ptamulgatron of a [NAAQSI (or m y mvisba breof)," Seetion 11o(al(2) makes clear thot this SIP must include. among o b r things, provisfons to address the requiraments of smth 11a[a][2](D). W8mad t h w provisions together to require that each upwind State must submit, witbin 3 y~ars of n new OF revisad NAAQS. SIPs &at addrss the section 110(0)(2)[D] requirement. By contrast, the schedule provided In s d o n 172[61 Is onIy mppfieable to the nonettafnment area SP ra ltirements.

h c n Ilo[al Imposes the obligation upon Stabs to make a submbsfon, but the contents ofthat submis6ion may vary depanding on the Facts and dmmstaaees. h pdmlar, ihe date and analytid tools available at the tlmg the section iro[a)[zl[D) SP Is developed and submitted to EPA aomssdy affect the mnhnt of the submfsion. Where, 8s here, the data and analytical tools t o Idnntify a s@jfimnt contribution h m upwind States ta nmattetnmen t mas in downwind States UB availabla, the State's SP submission must addmss tho nxistanco ofthe contribution and thg smission reductions noeossary to elimlnah the signlflcant mntrlhution. In other c ~ K U ~ S ~ B ~ C Q S , bowavm. th tools and information may not be waihble. In such chmmstancas, the s0ction 110[e][2)[D] SIP submission should i n d h w that the nacessary I n f o m a t h Is not availebl~ at the Lime the submission 1s made or that, basod on ?he inFormation avalIaMe, t b o State believes that no significant contributian to downwind nonattainment a i 5 k EPA mn always act at a Istor timn a b r tho InIhlsoetIon IIO[~][Z]@~ submissio~ to issus a SIP call undar s d o n l fO(~(5 ) to SBtw to revisa their SIPS to provide far additiond emission wntmls to satisfy thesaction 11o(alI21(Dl obligations If such 8dOn w8ra

dEigMuOil. C h l I Air Act SeCtiOIl

25264 Federal RegistadVol. 70, No. 91/Thursday, May 32, 20051Rules and Regulations

warranted based upnn subsaqumtly- avaiIable data aad ana?yses. This is predsely h e circumstance that was pressnted at the t h o of the NOx SP Call in 1996 when EPA issued a s~ctIon 110[1;1(5) SIP call to states regarding theirsoelion IIO[~](Z)[D) oblj ations on tho basis of new infmnation Bet was doveloped years nRur the Slales' SIPS had bmn prsvlousIy a proved as satisfying section 1&1zl[~l without providing Tor additional controls since thn information ovahble at the e a r h

oiat in t h e dld not IndIcate the naed orsuch additional wnimb.

Not only is Ihf quancing consistent F with tba C M , i t i s consistent with sound oliw considmtions. The u p w i d rnduetions required by todty's a c t i n wQ facilitate attainment planning by the Sfates affectEd by tmnspart downwind. Rather than belng "prim13turd' as soma commenters sugpstad, EPA'S undarstmding ofthe data and mode15 leads the Ageney to beli~ve that raquIrIng f i ~ States to address the upwind m s ~ r t wntributton to douvnwin# nonattainmsnt earUet io the process EIS a fist stap is R reasonable appmach and is filly camststant with the stahtory structure. This appmacb will allow dnwnwInd States to dov8?op SrPs that sddress their sham of s ~ s s i o o s with b w l o d g a o€ what measures upwind States will have adopted, In addition, most of the downwind Statns that wi11 benefit by today's rulemakin am thnmselves si nificant c m b i b utors to vio)etions offie standanis m a r downivind and, thus, =Q subject tD the same requIrmenrs as the Stales M a r upwind The reduc~oas thesa doivnwind Statas must implemnnk due to tbdradditloaal r d s as upwind States will help raduce !helrorvn P h i s and 8. hour omm pmblams an tho samn seheddo 8s ernIss10ns raductions for the upwind States. We believe that provldhg 18 months from the data of today's adion for Stetes to submlt the transpott SIPS requirad by thrs rule I s appropdats and roasDnnble. for the reasons discussed morn hlly bolow. a, The EFA's Authority To Require Section 1rOInlIzl(D1 Submissions in Accordance With &e Schedule of Section 1 IO [a)b I

A numbm of wrnmentm abjected lo P A ' S propasd to requim States to submit the tmns ori Sips on the schdulaset fa& in secUon Iln(al(l1. The cornmentars argund that sedon Iltl[a][l) does not apply to tho requirements of section rlD[a)Iz]@l, becailse the fornormfen lo plans that Steta must adopt "to imploment. maintnln. and anforce'' ibe NAAQS

"wilhino' the State, whereas t h ~ latter refers to plans that prevent omissions ihnt affect nunattainmaat or maintenance ofthe NAAQS in places outside the State. Acmding to the commenters. bacausn section llO[e][l) SIPS purporledIy nwd not address the interstate transport i5sua5 governad by section 110{a]@]P3], tha States hnvn no m m t nbligatioa to prevent such intarslats tmsport and, by oxtension, tham Is no hasis for the CAIR a t this time.

cornmentars. A State's SP must of COWB providg for "Implernentntinn, maintenance, and enforwment"of the NAAQS " w i t h " the State beaausa Stafas Iack authority toimpose requirernmtc onwmces in athar S ~ s s ; ia, any plan submitted by aSbte will nnmssarIIy be spplIcable to soutm " w i W that Shta The CAA, hnwavsr. also requires that such SIPS must be submitted to EPA no later than thm pars a€Ierpromulga.atron ofa naw or revised NIYiQS and must contain adequata provisions regardfag hoterstate transport korn edsslon sourms within the State in compliance With section 1lOIal[2lD]. The ox licit ferns oltbe statute pravida for & State submission of initial SIPS nRer promulgation ora new NAAQS, and provide that slleh SIPS should address interstale transport. Section 110[8][1) provides that: lolachSlotnshnllm * atlnpt apd submit to thnhdmtnI~*m~or, w W n 3 years (orsuueh shortor padod ~5 &he AdmbkbatOrmRy p m t d o l d a r thn promulgation ofa mtIond primary amblurit alrqwlftp stnndmd brag mvfdontbnrcon ' II Ian which

and onforceman! of slleh primary stmdard Lp oath [ma] wIthIn such State.

Section Il0(8)[2) pmvidas, in rdevant

T ~ S EFA dtsagrms with tha

pmvi d e5 for ~ p l e r n e n ~ t i n a . m&tmmm,

part, that: lola& im lamontatha plan submitted by a SMtalm& thls ActshdIboadaptdhytbo Sleta aRerruwnnblonotbn md pulik haarIng. Sa& wch p1m shdI ' . Dl contain EdOqUiIfO prnvfsI&{l mhibiting

aelivrty with the Statu 6mm aruitting m y aIr pouutaPt in Bmumts W h i h WIWl) wntrIbulo srgnificantly tnnnnattalnment in, otlnttrfemwith rndntenanm by,anyathn: Stntn with m p c d tu [tho NAAQSI.

By rofarencing sach implomentation plan in sectim IIO[~)[Z), it fs clear that ihe implomentation plans rcqdred undwsectian ?IO(CI][I) must satisfy the mqukements ofsoetion iio(a][z)D). Thus, the plain meaning Dlthnse provisions, road together, is Lhat SIP mbmissioas MR required within 3 years of pmmulgation afa naw or rovised NAAQS, ant? &at !ha SIP submissions

* * * snysourcear&DrtJyh!om

must meat tha mqulmrnonts dsedion I1obl[NDI.

By wntrast. otherrequiremenis of s~ctioa 1ioIel(zl BFB not trigwed by P A ' S promuIgathn of a naw or revised NAAQS, but nthar by EPA's final dEjign3UOn of nonatlainment mas. For exsmpIa,soction ll(l(a1(2)[1) by its ierrns Indicabs that State SIPS must most that requiromant not on the schnduls of ssciion IloIa][1l, but instead on the schedule of section I72(bl, The eKplieIt distlndon in the statuto

between requbments that States must meet on the schndule ofssclion IlU(a)(Il versus- the scheduln of section 172fiI reinFoorcas tha condusion fhat Stat= aro to meet the initid requirements of section IlO(a][2][D] wlthin the schedule of sectSon iiolal(i). In this confmt, It is important to nntB

that the IE uhmants of saction

desIgnaied attainmmnt, nonanainment or uncIassifiabh'l* Sseh'on IlO[alIl) raquiras each Stah to develop and submit 8 plan &et provides far the impIemantation, mohtenanco. and enfomment of !hn NAAQS in "each'* area of tho Siato. Similarly, &a requimmont insection 11a(a][zl@l that SIPS must prohlbit interstate transport ofair 011utantS tha t signikantly contdula to dawnwind nmatlainmont Is not limitad to any parlicular category of formally designated areas fn tha State. Tho provisions apply to emissions 8 d v i ~ e s that occur anywhem ia a stale, regardless of Its desfgnaUon. If, 8s ths omm men tars suggested, ihs requiroments of section ZlO[a][Z][D) plans ara govamed not by sodun 12o[a][l), but ratherby he scbadul~ of sadon 172, that would lead to &S a h r d rasult that upwind States need only rduca nmissims fmm designatad aonnattainmont mas to prevent sipfieant conhiutioa to nonattabent or interferenw with maiatananca in a downwind State. GIvsn that large portions of many upwind States may bo desIgna!ed as attainment for tha NAAQS fnrlowl purpases, yo! slill contain 18gP sources of emissions that affect dnwnwind Shtas through Inkstale transport, EFA bdievw that Congress muId not ham intended the pruhibitions o f s a ~ t i ~ n ~~o[e l [z )P) to apply onIy to nonathinment ateas in upwlnd

llO[a][ll p 9 am are not limited to m a s

ShtO%l'a hdWd, the hlIgUag0 Of

Federal RegisterlVol. 7D, No, %/Thursday, Mu~ay 12, 20051Rules and Reguulations 25265

s d o n 110[8)[2] itsolf does not ~ ~ p p ~ r t such mint retatinn. Therefore, the dtornative z o d u b provided in section Z?Z(b] applicable o d y to nonattainment m a s cannot Im the schadule that govern the Stata submission of transport SIPS. This Ieaves the schedula ofsmhn tro[a](l] 85 the only appropriate schadulo in the- case of SIPS folIormIng EPA promulgation ofmw or r e v i d NAAQS.

Tho mmmenkrs also disputed that

totha s d o n iio[nl(2HD) requiremonl bemuse- L h a r ~ am other slmonts of section 110(a][z) b a t Statas could not meat nn that schedule. As an example. tho commenters ointed to section

mmt carlain obligations imposed upon hignatsd nunattainmeat mas. As formal ddgnatlon undar tho g e n d l y applimble pmvtsfons ofsectian 1D7(d) could taka up to 3 p a r 5 follnwing promuIgatfon ofa now or revised NAAQS, and s e c l i m 1721b) allows up to 3 additional pars for Stah submissiw ofnonattalnment mea fho commenters mncludad that States could not meet 5ecCim I1Ota)[ZlDl on tha schhodule of section IzO[a](l). From tho fad that States could not meat a11 of the elemenfs of the saction 110[11(2) requirement wimn 3 years, the commanters inferrad that EPA cannot require St8kl to m e t any of the requirements In sadon IlO[alIZ], includingsedon iroCaltz1 1. commentom' approach io the intorprefation oCths statute, Tbe EFA a p e s that them are certain provisions of sectinn r~o(al[z) that U P governad not by &e sdhedulo of saction IlO[a][ll. but Instead by tho timing raquiremeat nf

Other items in section iio[a)[zl, hnruovar, do rick deppend upon prior designetians in order for States to develop a SIP to begin to comp?y with them, ~g ...ssction rIo[a)[zl(B) (pertaining to monithgl:ssctIon iia[a)(z)(E) IstipuIating that States must provide for ade ata resources]; and swum n ~ n ~ & k ) (pmtaining to rnodnlhg].

Most impartant, section 11O(sl[2l[I3) i h l f does not apply only to irnpocb ou doimwindnonattdnmmt areas. and thus- does not prasuppnso prior

lbsEB wlll b ponlnus of npwlnd St a- that tncfudo mkdm solums that am nut In r i d p a t m i nmtlolammi uuas.whelharb- d l d rnodtnrcd n ~ n a t ~ u n t . c r r b m u s a d mnMbuUm ID a warbywnat!aIruant ormy& t b m p o a i o ~ o l the upwiud W o may watala sa- that muse emisslw &at addmu t~ rnwl the IFquImmenu ofscctlon a1oIn)PlloE

&e s&eduh of section 13O[al[1) applies

1lo[al[zl[rl wbicg reqnlras SLm5 to

Tho EPA dj~grees with E e

sodon 172(b), a#., 5~ctiOn XIO[a)[Z]m,

mut

dmignatiuns in either upwind or downwind Smtes, or suggest &at section 110[al[ZlD) Is somehow inapphabla unlil the submission of nonattainrnont e m plans. By its e x p k i t &ms, section 1~o[a l [2 l~ l requrtes States to prohiblt emissions from "any sourca or other types of amSssIons activity within tha SiaW that "cnntributa to nonaltalnmmt in, or Inierfem with maintenance by'' any othar Stats. A plain mding of the statute indimhs that t h ~ srnissions at ism0 ran ernanato From any portion af an upwind State and that the impacts OF concern aaa occur in any portion ofthe downwind Sfato.

WhiL EPA agrew that t h o t e Is overlap betrveon tbe submIssIon requirameats of

172[c], EPA believes h t the plain language o f t h e saclions requires States to submit plans that comply with section 110[aIIZl[nl prior to tho deadline for nonattahment m a SIP5 estabIislsd by section 172, and tltat there is n o u n that cornpals a contrary

172. Section 172b) providas that State plans fornonattahment a m s must meet '%e opplicuble requIments of [section 172[c)l and sedion 11O[al(2]" {amphasis addad]. Thus, the statuts itself explicitly indicates tbat the State submbsions for aonattainmnt plans must mest those requiremanis of section 111?(e)(2] &at me "applicable," not each raquirement raprdIars of applicability. In the currant situation. E;PA balievos &Et it is epproprlate t o viow the C#A aszaquiring Statss to make a submission to meat tha requfremrnt of section 110{a](z](D] in acwrdancowith the schadula of section rro[a][l), rathar &on under the schedule for nonaltainment SIP5 in seetron 172[b)31"

5edDW 110[8][l) a d [a)@) a d S C d O l t

eonclufan fa & s language of section

b. Thu E A ' S Aulharity TD Raquire- Sectlon IlOta)[z)D] Submissions Prior to Formal Designation of Nonaflainment Areas Under Section 107 A number olcommmters q u a d that

EPA has no authnrity ta requka Stales t o cnm ly with section 110[a)[z)ID)

nonattBinrnent areas for Lhe P M l j end 8- huur omno NAAQS.1'7 Thsse commenters claimed that section 107Idl and provisions d t h e Transportation

ity Act fur Lh8 Zist Century (TEA-

end &hour m n e nonanainmenl 8 r ~ a s praduda EPA from Intorpretiq h a CAA to requh Sfatas to submit W s that mm Iy tvlthsedon IlOfa)[zl[n) on the s&& conbmphted by seetian 1iabIb). In the viow of the mmmonters,EPA could not rewonably expect Statos to datermine w h e h r and to whnt extent thek in-Stets sourms s&rdficanfly contributed to nonatfaiment In other Stat= withln the initid amyear thoframe, in advance of nonatttalnmenk area dnslgnations. According to the commenters, section l07[d] and TEA-21 negate the iiiming reqdremmts dsedion IlO(al(11, so that Slates haw no current obligalion lo eddrass inlorstate tran$pnrt and thus there is no bash fortodayk action.

cornmentars' view oftha intmciion of s d o n 110 andssdinn IOP(d1. Tho siatub doas noLmquTm EPA to have completed the desipattons pmcpss bofore &e Agmq ur B Stale could assess tho axistenee OF, or exlent of, signlilcant contribution kom ma Stale io mother. In addition, the technical approach by which EPA d e t s d n e s signifiesnk contribution hum upwiad lo downwindStatas does not depand upnn the prior completion B f the designation

ThbEPAbaSieves h a t the statute does not compel tba cnnclusfon that States may postpone complianm with seclion ~~a[a][z]@) until some fiturn point after mmpIelIon dthba designation process, As discussad Shove, a reading dtbe pIain language of sections IrO[~l[l] and llO[6][2] hdicatas that Statesmust adopt and submit 8 plan to €FA wiihh 3 years aRor promulgation of 8 new or wised NAAQS [tho same

due under seetion 1071, and !bet each

* V h s E P A n o W t h n t t b n & b w r ~ o d d ~ u m b m m o P~W~VII an frvln E. ZOW, and ibt Iha F%& dmIIgnattw will L m e n f f c d l v ~ m A p a 5.2- ' I h w EPA bollOr?S that tho Lmo wd h ihnwpmrmtm Lc thtu mod dlh 10 Lh i o 8-hmr-nmd P h h ~nntlnlnm~nl w bEcanrs f i n o dmlgaallon#m now mmplpta

until B P er EPA fomdly designates

fha dasignation oWM3

Tbe EPA dkagteas with the

PrOCQSS.

! b e 8t WhiCh dOdgnathS g ~ ~ ~ d l y

671‘; 25266

such p h must m e t tho applicable of the PI& nnd 8-hour ozone NAAQS re uiramants of sadon llO[nl(2l[Dl.~*~ in 2010 and 2015. In subsequent steps,

P A a a a l p d whetharthe emIssIons nor section 1 m ~ a l ~ Z l ~ D l am llmitad to FdoWhg the sxnmph of the NOx SP fmm upwind SWts conMbuted to I ~ B “nonattainment“ areas. By their wplicif Call, EPA has an mdylIca1 ambimt condldons at tho monitors terms, bath provisions apply lo all areas approach !o dofennine whetIt8r that registaring NAAQS vfoIatiom in within the Stato, regardless ofwhether intmttale contribution is signifiesat, in dawnwind Stales. and themaftor EPA has formally dasignated the meas aemrdmw with section lloIalb)[n). datnminad whafher that wntFibution as attainment. nonattalnment. or Thus, EPA mrrentIy has tbe ioJprmatfon would h SIgnIiicant puFsuant to sadion unclassifiable, pursuant to section and tools that it needs to determlno 110(a][21[D), 107(d). A5 lo causes, section what t h ~ initid PMs and &hour o z o n ~ In none nf thesa stops, hnwwer, did 110[nJ[2)@)] cclmpels States ID address SIPS from upwid St~ites should Inelude EPA need to know tbaprech any “emissions octivity w i h h the as appmpdato NOx and SO2 emSssIons houndaties of the nonattainment areas Stata,” not SOIBIY emissions frcm mductlons in order to pmvent emissions that may ulhataly r m l t horn tho formally dasipetad nonalbinmant that significantly contribute to section 107 desI~nathn process. The areas, nor does it in any other tams nonaltahmont in downwlnd Slabs. ‘Iha detarminatien of altainmsnt status In 8 suggat that dosignations of designation process under sectfon fa7 is given cultnty Is based primdly upnn areas must fmt have o c c d ? % E t h o means by which States and EPA the modIomd a m b h t measurements of impacts, section 110[al[2l(al rsfers m?y d d d a the precise boundaries of the the applicable pnllutant in he county. to pxevvonth of”nnnattafnmtrat” in nnnnttafnrnent areas in tha dotvnwiad Thus, i t isthe readings at the ~ D ~ ~ Q I S olhor Stat=, nut to pravention of Siates. Both P M ~ J and m o m are h a t arc the appmpriate InfnrmatIoa for nonatfainment in designated regional phemmsna, howaver, and EPA to avalunle In essossing eurront und nmattainmeni m a s or any similar information 8s to the precise bomdui’es future interstata transport at that formulaLion repiring that designations afaonattainmflat Ut188s is not nrtcaassary monitor in that wnnly, not the nxsct for dcwnwInd nonattsimont m s s ta implement the mquhments o l dimensions of tho ar8a Lhat ma must first have o c m d . Bv saction 1 1 0 ~ ~ 1 t z l ~ l for these pollIutants, ultimatelv commise &e formal Y

Federal RegisterlVol. 70, No. elIThursday, May 12, 2[105/RuIes and Regulations

Statas am conhinting to vioIations OF fbo PMY and &hour mane NAAQS in

h&nifieandy. nelthor secllwr l l O ~ ~ I ( 1 ~ downwhd States.

r comparison, ather provbioii ofthe (=An do clew1 indate when they are appliabltr tu Jmiggnnted nonatfoinment areas, mthar than simply tu noaaltahmont mom gnaamlly (e. ., seclions lO7Idl~ll~AlIi~,l~ltb)I2~~Al, and ZU{k][IO)@]), Bccat~se section 11n(a)[2lD] d e r s cdy IO “nonattainment,” not to ”nonattainmant

EPA concludes &at the sectron does not presuppose the existoncs of fotmalIy ddgna!sd nonattdameat a=, but ntherlo antbtsnt air quality that d m not aktafn &a NAAQS.

Tho EPA hlievas that this plain madirrg o H h pruvfsions is also the most logical approach. A readhg that section 110[a][2]P31 means that Stnles have no obligation to address hntsrstata kinsport unless and until there am formally designated nonatfainment areas pursuant to s c l i m 107 would bo Incarisistent with &a I q e r goaI of the M to sncoumgo expeditious aHaInmont of tbe NAAQS. In this immediato instance, currently avalIabIe air ualIty monitoring data and moleling rnda it clear h a t many arow of the miem portion ofthe country are in violation of both the PMg and 8-hour O Z O ~ O NAAQS, Air quality modding studies g e n e d y evailabh I o the States damnnstrata tht, and quantify tho Mont to whldt, SO2 and NOX emissions Eom sources h upwind

- _. . ~onsequenlly, it was not n&sary for EPA to wakuntil aftar eompIetion of h m a l designation olnonatiainment area bnundari~is before undertaking this d e r n a W n g , Moreaver, EPA bdiavvas that taking action now will adhieve public hoaILh rotections mom quickIy (is it will end& States to devolop implementatinn plans mom

aditioud and effidsntl T h e EPA biiagmes witt! & commented view of the relaff onship bBtwoen section llO[a][Z) and section 107 and their ap want viaw o t h mathod by w h d EPA analyzos whathar thorn is a contxfbbutim from an upwind Slata I o a dormwind State, andwhather that contribution is significant. Tho EPA has, fa thls case. used the

dBttailad data born the axlonsive natwmk of air quality monitois to idontify whkh Stat= have monitors that are currently showing vinladans ofthe PM= and 8-hour omna NAAQS. In tho NPR, HPA stated !hat based upon data for the 3-year parfod fmm 2000-2002. “I20 auntlles with monhrs axceed the annual P% NAAQS and 297 muntias with munitmreadings exceed the 8- hour mom NMQS” {69 FR1566,4581: Jmuq 30,2004) (emphasis sdded). Tba geographic disldbutlon dmonItors with data registering cuaentvIdations indhted that them is nnnattaimnent of h u h the PMZS and &hour ozom NAAQS throughout the eastern United Statas and in 0 t h portinns 01 the country including California. For analyses of future amhimat conditions, EPA used various modeling tools to predict that, in t h o ahsenca of tha CAIR, &ere would bo counties with monitors that would continue to show violations

desfgnatid nonkhitnent araa-fie ultimate size of nondtainment areas w U hzw a baaring on dm components of the State’s nonattainment m a SlP.Tha size of such nonattainment amas, horveuer, Is not meaningfur in assessing w h h r interstate transyortfrom aanfhor Stata or States has on impnct at a violating monitor. and whether the transport signifimffy contributes to nonattainment, that the oherstate or States should addross IO comply with section llo(e)[2lD), Thus, EPAbdfDUe6 that basing the sigdiieant contrlbutIon analysrs u on the cnunties with monitors tg at regisfsrnonatlainrnont, without regard to !ho p m c i s ~ b m n d a d ~ oftho nanattsinment areas that may ultimately result fmm tha formal des@affoa process under section 107, Is tha pm QT approach. For sirnhr reasons, EPA also

dkagmeswith the commnntea‘ assdon that the provisions oITEA-21 pracludeEPA’s interpretation oftha tlming roquimments oFsaelions IZO[~][I) and 110[a][2), However, Tw\- 21 did address lhe nesd to u e a t a a IIBW natwork ofmonitors to assass the- gaogrrapbk scope and location of P M u aonattainment, A?so,T~-21 did pmvida that such a network should ba up and running by December 31,1999. TEA-21 dfd lay out a seheduI8 for the collection of data avor a period of 3 yeus in order tn maka subsequent regulatory dcci6isians, From ihesn facts, the wmmentm eoncludod that TEA-21 nncessarjly contradicts EPA’s position that Statas must now take action to address 5ignihanL contribution to downwind nonnktdnmant in thelr

Federal RegisterlVol, 70, No, SIIThursday, Mny 12, 2005/Rules and Regulations 25267

initidsoctian 11~ta1[1) SIPS, marely bemuss tha inilia1 3-y~aar period follnwi~~g the promuIgation ora new ar revised NAAQS saedfied in section 1lO[al(ll has &pired.

The EPA behvves that nothing in TEA-21 axplidy wimplicitly~lteted tho timing rnquimmonts ofsection 11o(a)[l) for compIiancB with seetion IlO(al[Z](Dl, although EPA recognizes fihat tho data from monitoring funded by that Act contribuiod to the Agency's development oftha SP mquiremants in today's mlamakhg. The pravisions of TEA-21 firlainad to tbe installation of tl natwmg ofmonitors for PMu, and to the tImh of designation decisions Ior PMs anf8-hour ozone. To ha specific, TEA-51 had tivo primary purpos~s for the m w NAAQS (1) To gather Idomtian %r us0 in the determination oiaraa attainment or aonattainment dBslgnations" for &e P M 3 NAAQS; and (21 tu awwo that Stntw had adoqualetime to consider guidamo horn EPA wncernhg "drawing area bnundaries prior to submiltlng area dosignations" for the 8- haw mane NAAQS. TEA-21 saelions 6101(b)[1] and (2). The €PA interprets the ZMrd stated purpase ofTEA-21 to r e h to ensuring consistency oftiming betwoen tha hgioad Haze program requirements and t h ~ PA43 NAAQS requimmeats. With mspsct to thing, TEA-21 similarly only referred to the databy which States and EFA should take their respctiva actions conemzing designations. For PM3, TEA-21 provided that Stam wem required "to submit designations mferred tu in section 107(d]I'l) aftor recoipt of 3 years 01 nir quality monitoring data." TEA-Zf section

required States to submit d&gnatiun r m m m ~ n d a ~ a n s within 2 years der tho promulgaiion of h a now NAAQS, and rcquirod BPA to mako find dosfgnatfons within I par after &at ("EA-21 SECUOIIS Sl03Ial and @I]. In all oE these provisions, TEA-21 only addresses SIP thing in tha cnnlext of the designation process oCsmIon lOs[dJ. As explained in more d~tail abova, EPA does not bdinve that the Urnins of section 110W(i] and section 110[sl[Z1cD] obligations depend upon the prior designailon of areas in accordance withsection 107(d]. Tho EPA a h n o t a that hgMlation

subsaquent to TIiA-21 M e r supports this mndusion, In !he 2004 Consolidelad ApproprlatJans Act, Congress furlhermonded section 107 i o provido specificdates by which Stfiles and P A must mako P M ~ J designations. 42 U,S,C. 7407 nola. The Act nowrequires Slates to have made

within 1 yoar

6102[C][l]. Far ShOW OZU~IQ,TEA-~~

hair initid rnwmmendatIons for Phi- designalhns by February 16, m04, and requires EPA to take adiun on thosa remmrnendntians and maks its find dosignation decisions no later than Decamher 31.20D4, Again, these requiremmts perinin only tu formal dasignatitms, and do not ditody affect the obliptions of States b m e t other SIP requirements. Neither TEA-21 nor the 2OD4 Appropriations Act language alterad tho seetIan lln[a](l) schedule for compliance with seclion

The commontors suggested that because Congmss providod mom time for making formal designations ursuant to s~clion 107. It naeassarily F&ws that Stat= shoddnot have t o mant the raquimments of seetion IlO(a](Z)[n) on the sehedula orsection IlO(a~[l], Tha BPA balieves &at Congress did not, through TEA-21 or other acliolls, altar the existing submission sdhedule €or SIP5 ta address htsrstato kdnsport, By mntmst, C o n g t ~ ~ ~ did ~xpudtly alter tho schoduIe for submission of plan revisions t D addrassRegIond Haze. From this, EPA hfm that Congress did not intond EPA to delay action ta addrass the Issua dinterstale hatsport €or the 8.hour or P M u NAAQS. Thus, EPA must st i l l onsum that Slatas submit SIPS h accordance with the substantive xequimrnents of section llO[a)(Z)tD). Hownvver+hausa EPA and the Stat= nowbava the data and analysas to sstablish the prasenca and mngnitude 01 interstate transport. in part through the monitorh data g&ered pursuant 10 TEA-21. tffe Agency beliwves lhal that it is now appropriate to raquira States to address interstate transport at this time in the mannw set farlh in today'snrla. e. Tha WA's Authnrity Tu Require Section 110(a)[2)[D] Submissions Prior to State Submission of Nonattainment Area Phm5 Under Section 172

cannot determine the sxlstenm nFa dgnifmnt cuntribuGon from u wind Statos to downwind States unUpEpA actualIy receives the noaettainmenl area SPs Eom each Stat0 and evaluatss how much "residual" nonattainmsnt remains. If tha reasoning of these commuters w m adopted, downwind Statas would ham to cnnstrucl SIPS to attain tho NAAQS without first knowing what upwind States might ultimately do to reduce interslata tmnsport. Presumably, ths theory is that the dttunwind States may E ~ O O S B to control thdr awn low1 emissions sources more aggtasslvely so that SOWEBS in upwind S t a h wuld wold installation ofhIgb1y casst4eetlve emission conirols, notwithstanding &e continued

iiam)pi.

Some cmnmenters suggested &at EPA

significant Impacts of emissions from u wind soutcas on downwind Stat=, A~tornativdy. l ka raLionak m y ba that EPA should waI t mu1 submfssion of upwind stat^ nomttatunent area SIP5 to discover rvhethm and 10 tvbat degree the SIP& address intarsfatn tnnspnrt to downwind States.

For masons elraady discussed more fdIy above, EPA doas not belisv8 &at the statute re uircs a"wa1t andsed' approach io &aovorwbat, if anything, dates may rrItimateIy do to address tho

robIern of ra Smal interstain transport. L o n ~ ~ & I r ubes * * e a * Stat0 to submit a SIP wI;b"tn 3 years aftw a now or revised NMQS a d h i u g tho raquhments o€ section Ixo[altzS[D). W b n tho data and tho andysss neoded to ostablkh tho nxIstenca of intarsiate traas ort ofpollutants and to dotormfn~ wh&r there Is a significant wntrIbuUon to nonattainmant or inturforem with maintmance by one State in anathrtr8ate ma avnfhbln. ELS here aer thn manitoriag fundad hy TEA-21. EPA bdieves that it may acl upon that information priorto State SIP submissions to ansum that Siatas address such contribution

aditiously, as it is doing this %making. The P A bdiwes it is a htterpolicy fo assist the States to address the regional component ofthe nonattainment prnb1am in 8 way that is equitabls, timely. m6t offective. and csrtaia.

historically. ~pecinlly in tho mlt of I- hour ozone, the Agency bas not had tho data a d the analytical tools to help upwind Stat& tu nddtess Interstah tmns ort BS sarly in tho SP procass 85 it Is dblag today for PM- and &hour azflne, Tba CAA bas raquimd States to reflato ozone mils regulatory predecessors sbee 1970. For many y o a ~ . Stains and EPA foeused on tho adoplIon and im IemsntatIon aflocal controls to bring%cal nonatlalnment areas i n h attainment. Thus. histotieally, local amas bore Ihe burden of achiovhg attainmnnt through Imposition of control meastlz~s on loml sources. By cornparism, upwind Status did not hava to adnpl 1-1 wnlrols in a t t h e n t areas and typicalty did not adopt such controls saIaly ta Iessen tho impact of their emissions on duwnwind States. Since 1977, &e CAA has a h imposed B smhs of I o d control obligations on I-hour amne nonaltainmont areas, such as RACT for stationary sowces, inspsctIon and maintmance far mobile sourcc~s, and other requjroments that became increasingly more stringent, based upon the levo1 a€ bcd nonatfainment. In spito of those local contml afforts. &era coontlnued to be a

The EPA achowledges that

25268 Federal RegisterlVoI. 70, No. 9l/Thursday, May 12, 2005/Rulas and Remlations 6% widespread pmMem with nonatlainment thet resulted, in part, from unaddressed interstala m p o d , A lack of InfomatJon and andytlcal tools hiedemd the ability of EPA and the Statas to address tho mgtonal Intorstate banspurt component of ?-bur ozone nunettdement, until the NOX SIP Call in 1998, While it is thus true h a t &e NOX SIP Call postdated the submlssinn of aonathainment arca SIPS, thbsbuuld not Lo conshed as nvidsace &at &a slahlte pracludas tho StaIas and 6pA h m addressing intorstate transpart ~arlior in the proccss forthn S-huur omne and PM- NAA S.

Given that and%@ States hdhputiibly have tho raqufsitn InfometIon to identib hierstate traaspart at this sta e ofSiP davclopmanf EPA h v w , basodupon its axpwiianca in implamfintmng the 1- hour ozone NAAQS, that it P pmfeerable to take actIan under section Il0(8](2)[D) to address tho regional transport component offhe PMY and 8-hour ozone nonattaiament problom, States, both upwind and downwind,will still have M obIigation to control edssfons fmm SUUrc8S withh t h o i r boundmias for Ihe purposes of Iocal area attainment and maintenance afthb NAAQS. The EPA does not believe, howaver. that it i s either required by the shtutc, or in accordance wlth sound policy, for the Agoncy tn wait unlil subdssion offbbe nonottfnmsnt ma SIP5 of downwind 3atw to dlsmvarwbslher ornot those SIPS wlIl control local s o w s sufficiently io pmvide for eventunl at talnrnent rsgardless of continued signikant wnltibutfon through Interstate transport from upwind States. Ta Lhe contmry, past expedanw with the l-hour ozone NAAps has demonstratod that delayed action to addross thn interstab component af aonatlainrnoat will pabntially lead to

smggle to ovorcome the impacts of iransport. Indued, a number ofsciontih and technical assossmenb of oznna and PMy by tho NRC and the Ozone Transport Assmment Group have identified ~ d h ~ h g Intarstate tran nrt BS a critical issue in devr&nB SIPS. d. The EDA's Authoriv To Require Section 11OIalIzlDl SubmissSam Prim to Cornplotion ortho Next Rgview of the P M u and &Hour Ozone NAAQS

Cornmantors also asserted that EPA shnuld not taka any action to implement t h ~ 8-haw ozone and P M 3 NAAQS, until completion ofthe next NAAQS Fsvisw CYCIR According to &a cornmenters. a seriias of stabrnents by BPA and others indiatsd an intention

dhytys in att&lIlOllt 85 do"IlWhld -8s

tn take no adon lo implement Lhu NAAQS until &tar t h ~ next review cydo, and that statutes passed by Congress confirm that EPA is to lake no SUCh ECffOll. Tho EPA dbaprees wIh he assertion

that It shodd taka no netion to implement thg 1997 PM- and 841our omne NAAQS until cornplotion ofths next NAAQS ravimv. Section IlOIa) e lrcitly requires States to begin to s3mit Spswithin 3 years aRer promulgation ola new arrevlsed NU@. T ~ R CAA dso mquites EPA to t a b action upon State SIP submissions within spedfic tImeframes. Stat@ am libwlsa axplicitly obligated to attain existing NAAQS within certain specified tlmatrames. Nons of these basic statntory submIssIon, revisw, or attainment obIigatians ara slayad or delayed due tu the fact tbat them may be an ongoing NAAQS roview cycle. Indeed, under section 10% E A is ta review all NAAQs on nn ongolng basIs, every 5 y ~ m , lfthe mere exjstance af a NAAQS raview cycle w m grounds to suspend Implementation of 8 NAAQS, it would undennina the very goals of the statute.

The mmmonters argued that cortain statements made by EPA and athers In guidancememomada and elsswhsre produde EPA from laking any a d o n to irnplemont the PMu and 8 - h ~ ozom NAAQS. The EPA bdieves that the cammmhrs are misconslruIng those statemonis, and that thestatements rnnrely reflnack &a Ag8ng'S asnunption that tbs NAAQS rWi8W @e would occur on !he noma1 schedda, It would be nomensical to suEest that, iffor any reason, the NMQS mview cycle were- ddn ed, that the CAA would permit no implYomentation ofthe existing NAA~S. Such an approach would invlte and oncomge inappropriate interfererence in the NAAQS revkw cycle as a means of

The wornmantors Morargued that

imp emenlation of tho 8 - h ~ ~ ozone and PM3 NAAQS pendtng !he next NiUQS r d e w cycle. The EPA dues not se8 any such intsntion on the part of Congress. In - 2 1 and thtr 2 o a ~ CmolIdated Approprhff ons Act, Cunpss has amonded smdon 107 to provide spocific dates by which Statss aad EPA milst make designations. Significantly, Congrwss did not a b r the axisling statute with respect tu any other doadlines €or SIP submfssions, or with res ed to impIemantation oftha P M u anl&hour mono N U Q S genaralIy. By contrast, in thez004 Cansulidatod Ap ropriations Act, Congress did

must submit plan ravisims t~ address

S u b V d 8 tho

has taken action to pravent

axp 'I icitly alter the dais by which Statos

bghd Ham. Soe, Suction 7(A), 42 7JS.C. section 7407 note, From this explicit aclim, ono must infar that Congress could have takon action to dtnr the submission dato for plans tu address PMs ora-hour ozona. had it Intended io alter the oxistingslatutory schmo. Most importantly, howmer. Conpuss did not make any nf the changes erected In TEA-21 or the ZDW Consolidated Appropriations Act dependant U~DII compIeGon of tho n u t NAAQS review. To h e mnkary, Congress directad EFA to taks certain aa0n.s notwithstanding &e fact hot &era warn and am ongoing reviews of &s NAAQS. Frum h i s , EPA Infers that Congms did not intand EPA to dnfer all action to h Ioment the exlshg NAAQS. inching toda s action to assist States to address & rcqdremank 0fsaCtIon 110[n][2]@]. o. The -A's Authority To R utre Statss T o Make Ssdim IIO(~ZI[D] Submissions WiWn 18 Months of This Final Rule

Some commentm quastioned EPA.5 p r o p ~ d to roqulro States to mab SIP subdssions f n r a ~ p ~ n ~ e to thIs action as expedilhsly as practiuble but no later than within 18 m o n k A number of commenters suggested that this schedule is ion shart because ofthe magnituda or complexity oftha task or hmuse aftbe typical duration of Slats rulemaking processas. Other cornmentors suggested h a t EPA should follow the warn le of fhe NOx SF Call mora clmly ani provide a shorter p d o d than the A p n q pro osad.

The P A h u candudad %at the prnpsed 18-month sehedule is reasonable given the chmmstaaees and given the scope of the actions that wo are rsqulring Statos to tako. We issued the P M 3 and &-hour mane NAAQS ravidons in July 1397. Mom than 3 years havo alroady dapsad since

rornulgation of tho NAAQS, and Statss !avo not submitted SIPS to address their section .iro[a)[z)D) ahligations under &a nmv NAAQS. Wo recognize that litigation over tho new P M u and 8.hour omnB NAAQS craatad substantial uncerlainty as to whethor tho courts would uphold tho BPW NAAQS. and that this uncert~inty, as a practical matbr, readsred it more dilficult for Status to develop SIPS. MO~OVW, in the w o ofPM3, additional time was nmedad for mation of an adquato monitoring network, collection OF at lcast 3 goars ofdata &om ibat network, and andysis afthose dato. In adddon, in the NPR, the SNPR.

and tttdey's action. wa have providod Stales with a great deal of data and analysis conceming air quality and

Federal RegistcrlVol. 70, No. 91 /Thursday, May 12, 2005 /Rules and Regulations 25269 t

control costs. ns well PP puliw judgments from EPA conmmlng the apprnpditte u i i d u for detonrrining whothsr u wind sowms contrjbrtto signlficantyy i m downwind nonattainment under section 110[~1][2llD?. W e wcognize that States would fma Feat diimltfes in daveloping transport SIPS to meet the requirements of today's action without thasse data and pnlicbs, In light nf these fadurs end tbe fact that Statas can no Iongor mast tho ~ r l g h d >year submittal dote of soction lI[l(aJ[l), wo believe &at Sta~es nead a reasonable perlod of time in whI& to comply with tha m ukamunts of today's action. ?n tbo compmblo NO^ SIP ~ g l l

nrlsmaking, EPAprwidnd 12 months for the affected States to submit their SIP mvisfons. Ona ofthn hetors that we conshhad in selting that 1z-monh period was tha t upwind Stabs bad nhady,as part of the Omno Tran~p~rt Assesrment Group processbop 3 yea5 b8fUtB the NOx SIP CBtl domaking, baan given the opportunity io consider availabb conkrol options. Bemusa loday's acllon req&Bs affechd Stntas to control both SO, and NOX emIssIons, and to do so far tha p af addrossing b d i &P P M u nnd%yL ozonn NAAQS, tvo boUovn it is reasnnable ;a allow aflected States mora time than wos allotted In thaNOx SIP CaH ;o develop end submit transport SIPS.

h o t h e r faclot that IVO havo considered is &at undcrsxtian llOfi](S), the C M slipdates that EFA may prclvidB up to 16 months for SIP submisslons ta coned substantidly Inadequate plans. while taday's action Is not pursuant insseLInn 110FltsI. W B bellow that tha pmvidnn provides an analogy for the a ropriale schedule an wMch EPA shoufllfexpea datas to m&e tbs submissinn requirad by today's action. We bahva f t wadd nnt ba ap topriata tosst a Iongerschedule for &mission oElhe plan &an would hnve been possible under soction llOlk)[S] had the dates submitted a plan an rhs original a-year sehodule contamplaled fn sedan 11Ofa1~31 that did not proddo for the omissions rnduetims today's adon raqulros. While the CAA daes requiro States to make some SIP submissions on shorter schedules, we conclude that the compIwitiE of tho actIon required by today's rulemaking militale la favor of a lonprschadu1eF

FinalIy, we nots fiat by making findings that Statas kava thus far Mled ta submit SIP5 l o meet the mquiremmnts dsection ~io[a](z](D) for tha &)lour ozone and P M 3 NAAQS. EPA has an obligaff on to irnplnment a Federal implemenlation plan IFfp) to address intarsate Wansport no later than 24 months ahor that finding, if the Slntatas fail to take appropriate actSon, Given this schedule for he FR' obligab'on, EPA believes that it is reasonable LO roquhe States i o take action to mant the seetron 11o[n)[Z][D) ob?igaatIon with q e c t to the significant contribufion identified In t~day's nrl~ witbin no mom than 16 mmths. Such a schedule will nllow State ndequata time to dwolop submksions to meet this requiramant and w i U afford EPA adequate t ime to raviaw SUA submissions before the imposition ofa FIP in lfau ora SIP. If new

T h z A has concluded that States should submit SIPS to mdues interstate transport, as re ired by this find

but no lstsr than 18 months fmm today's date. Such aschedulo will pravide both upwind and downwind Statas, and tboss Sfates that am in both

ositions rdative ta ather States, 10

expadtiow nttainmont of tho PMM and tha 8-hnur azone standards. C. Whot H Q p p e n s y ~ state Foils To Submit a Trnnspori SIP orEPA Dlsnpproves the Submitted SIP? 1. Under What Ci~nuaslancas Is EPA Required To Promulgata a FIPP

Under section 110[cl(1l, EFA i s required ta promulgate a mP within 2 years oE (I] Ending thata Stats has failed to make a required submittah or (21 fiadiaB &at a submittal recdved d m notsatkfy the minimum EomplatsnEss criteria established under sadtion llO&)(l)[A] (40 CFR part 51, ap s a d i VI; or [a) dbapproving a SIP suimitttal in whola or in part. Sedan Iln(c](i] mmdatss that EPA promulgate tl FLp unless the States comls the dafidancy and EPA appravas the SIP before the trme EPA would promulgate the FP, 2. What h a the Completeness Critorin?

Any SIP submittal &at Is mada with respect to the final CAIR raqukaments first wouId ba detarmhed to bs either hcomplats ar wmpleta. A finding of cnrnpletaness is not a determination that the submitia? is appxovable. Rather, it means the submittal is adminrstralivdy end technicdly sufficient for EPA to

action, 115 exps % 'uously as pmcticablo

ftavdop SIPS &at will facilitste

proceed with its reuIewto delemine whatheriha submittal meats the statutory end 1egd8tOry requiremonk fur approvat. Undar 40 CF'R 51.123 and 40 CFR 51 -124 [tho pm osad now regulations for NO, a n i so: SP raqntrernants, raspadvely], a submittal. Lo ba cornplele, must meot t h ~ criteria described tn 40 CFR, part 51. appendhi V, "Criteria for DetemInIng the Completeness of Plan Submissions," Thas~ criteria apply gmamlly In SIP submisskns.

Undm Ch% suction 1rNkW and section 1 2 of appendix V, EFA must notify Stabs whether 8 submittal meets fba requirrtmenls afnppeadh V within 60 days of, but no later than 6 monlhs after, =A's receipt of $ha submlttal. If B mmpleteness daterminathn is not made within 6 months aRw submission, the submittal i s deemad wmplete by operntion afIaw. For rules submittad in responsa to the C A R EPA Intends Io make cornplatenass deIerrninatiowi -edit Iously, 3, Wh8n Would WA Promu~gata tho CAIR Transpnrt FIP?

respmdbility ta address the ism6 of ra@onal transpmt of PMu, ozune. and precursor smlsions, namases in NOX and SO2 emissions am nsadad in the

downwind Slates to devalup and irnpIernont pIans to adbisvo tho PMM and 8-hmt ozone NAAQS and provide dean air far theLrresldenkThus, EPA intends ta promulgate the FIP shortly aftmiha [=AIR SIP submissinn dadhis for Stains that fail Lo submit appmvabla SIP5 in ardor to heIp a55um that tho downwind Statas realiza tbe alr quality bennfits of rogional NOx and SUa reduciions a5 soon 8s pmaieable. is comisIsnt with Congrass' intant that attainmoat occur In these downwhd nmattaiarnmt arms "as expfidtffously as practkabIE tsectbns lel(a), 17Z[a)), Tu thls sad, EPA Intands to propose the mP prior to the SIP submission daadline, The FP proposal wnuld achieve the

NOx and S a ern1ssions reducLloons requirad undw !ha CAR by requiring EGUs in affected Slatas to raduco amissinns through portkipation in Federal NOx and SO: cap and tnda p r o p s . The EPA Intends to Integrate these Fedaml mding proggmms with tho modal hading p m g m that States may chouse to adopt tn meet the CAIR, Although EPA would be roposing F P s

will only issue 8 find FIP for those

T ~ B WA views seriously its

States nmad In thS a m 10 n l l d h th8

for all States affected by i B CAIR, EPA

25270 Federal Rc@ter/Vd. 70, Na. 9i/Thursday, May 12, ZOOSlRules and RBguIations

The EPA'sgoal is to how appmveble SIPS that meel t b ~ requirements O€&B C A R We remain m d y io work with &a States to dsvolop fully approvabh SIPS, which would alirnhats the need for W A l o promulgate a FIP. R. What Are the EmWons Repodng Reqlliremen Is {or SlUleFP

Tho EPA belfoves that it i s essential that achiavernent of tts smlssions roductIons roquired by tho CAIli he vadfiad M II regularbash. knissinn roportIng is th princlpal rnachanism tn v0rify thuse reductims and to BSSUFB &e downwind affected States andEPA that the mom and PMu tmnsporf probloms are bdng mitipled esroquirud by the ruhThedor8, th8 5nd rule establishes a small set of m w emission rqmriing raquh~mnts applicabh to States affected by the CAIRO covering cedain mkssions data not ahondy required under misting emission reporting

removw a current omissinn mpnrting roqutremmt related to thnNOx SIP qll . tvhfdh WD bdfove fs not noms reasons q la lned below. A nd%~Fif o h r proposed changes fn omission reporting rB uiremsnts which would haw allado% States not SubJoet to the find CAIR ~ T B not Included fn the final rde. for masons Bxpldned below, Wa will repropose hsse other changes, with modifidonso in a separate proposal to d o w additianal opportunity for public comment. I. Purpose and Authority

Because we we consolidating and harmoaIzig the now smission raporFing requimments pmmulgatsd tuday with two pre-rlxisling sots of emission reporting requiremeafs, wo rovlow hma tha p u p a and authority fur smksion re ortin requirements in g m d .

Lissfms inventories mi aitim~ for ths efforts of Statc, l o d , and Faded agenciss to attaIn and maintala the NAAQS that EPA has ostablkhd for critilan'updlulants mch as omne, PM, and CO. Pursuant to Ih authority under sedans 110 and 172 of tha CAA, P A has long requbud SIPS to provide for the submission by Statps to EPA af emissions inventories containing infonnatIon regarding tho emissions of criteria gohtants and their precursors [a.g..VOCs), T ~ Q EPA codified &os8 rquirornenk in subpart Q of 40 CFR p~ 51, in 1071) und amoaded thorn in fD87.

The 1900 Amondmants !a the Ctyi revlsed meny ofthe pmvisions trfthtr CAR Felatod tothe a W m t of tha NAAQS and the proteetion of visibility in Class 1 mas, Theserevlsions astablkslsd now perfndlc Bmissioas

lX?@htiOnS. The d 6 hgU6ge ah0

invmtory toquiraments upplieahle to artah amas that were designated nonattainment fur certain pollutants. For mple,sBctim 182[aI(31(A) roquhedsta~es tu submit an arnksbns Inventory every 3 years far nzam nonattainment arertsbeginnlng in 19D3. Similmly, sedfon 187(a1(5] required States to submit an Inventory every 3 years for CO nonatiainment areas, The EFA. homvlsr, did not immadiately codify these slatutory requirements in the CFR, but simply relied on tko statutory language to implemant &em. Zn 1998. EPA prornulgatnd the NOX

SF d l which requires he alfected Statas and the DIstrict of Columbia to submit SIF ravidans providhg For MOX reductions to reduce theh adverse impact on dnwnwiad mono nonattainment mas. (63 FR 57356, Odober27, ISS8]. As part of that ruh, codlfisd In 40 CFR 51.122, EPA sstabiished emissions reporthg mqukemmts to be included in the SIP reVki0nS requirsdundsr that ectiun.

Another set of smissIeas rapoiling raquirements, termad the ConsaIfdaied Emissions Re otlIng Rule KERRI. wes

codlfiofat40CFRpart51 subpwi A. (67 FR 39602, June 10,zOOz). These requirements rep1awd the requIrement5 previously contained in subpart Q, expandtng tbeirgeogapkk and poIlulant coverages whf le simplifying them in athor ways.

The principal stetulozy authodty for the emissions invnntory reporting roquirmeats outlined in this final rule is fouad in CAA ssction ~lO(a)(z][F), which provides that SIPS must requira "a5 m q be prescribed by the Administmtor (iil periodic r8pOI35 on ihfl Il8tur6 and moUntS Of emIssIons and edssions-rdatad data from such SO~LFC~S." Section a131ta) of the CriA provides authority for EPA to promulgate regulatims under this pmvisionfZ0 2. Pmexisting Emission Repotting RegUhment6

As notad above. prior to this f d mla, two sections of titla 40 of the CFR conlaIned emissions reporting requhments that are applicable fo Statss Subpart A of port 51 Ithe CERRI and sedan 51.122 in subpart G of part

requirements).

pmmd atad 1 y EPAin 2002, and is

5 1 (&e NOx sp mpodag

*mOhrCAII &!urn m l m t to thh h a t

noneualnmui armmust hnduda armpabaarlva ami Invcnbry oraclltal emlrstpns. Indudlng pdudlc rar-blw): s d o n rst[aIP)Ml fcmhIoar LmmnmIfa ~ K I -0 namtldmumt - b n d seditin Ifl7[~]{51 (&Ion3 in\%nbdm h m e0 U r n l t a i n m r n t am!sl.

d o Indruio s a d ~ 1 n M 3 1 @mvlda btal SIR fur

Under t h ~ NOx SIF Call requiraments in seetion 51.122. mksbns dNOX for a defined 5.roontb ozone season [May 1 throu SspternbartOl and far work

mobile SOUTCCS that tho Stat0 has mbjeded tu edsdons control fo wmpiy WIth the requirements of the NOX SIP Call. are required to be reported by the affected 8 a t m to EPA w q yew. Howovor, omlssims of SDUTCB~ mportiag directly to EPA as part oftbeNOx ttarlingprogtamarenot roquhd to bo repottad by the Stam to EPA evety year. The affecled States are also required to report m o m saason emissions and typical summer ddly emissions of NOx horn all sou~cas every thud year [2002,2005, atc) and in 2007. This trhnial reporking proc~ss dues not haw an mmption for sources participating in tha ernisshns trading pmgrams. Sectinn 51.122 also requiras that a number of data ehments bo ropartod for en& s o u m in addition to ozone season NOx emissions. These data &moats daseribn cortah nf the snwce's physical and operational paramstm.

Emissions reporting undm tho NOX SIP Call as first pmmulgatad was rsquired strtrting for tha smissions reputting yaar 2002. tha yaar prior to the slart ofthe mquired emIsskns raductlons. The mpods am due to EPA on December31 ofthe wlendaryeer follmlng tho inventory year. For axample, emissions horn ali sources ond types in tho 2002 ozone season wem required to ha rnporlsd on Dec~mber31, 2003, Hawever, because tbn Court which heard challenges to tha NOx SP CalI delayed tha hmplamenlatiun by I year to 2004, no Stale wasrequhd to startreporting u t i 1 the 2003 invantory yew. The EPA promulgated a rula to subject Georgia and Mbsouri to tho NOx SIP Call Wlih rn implamentation date af 2007. [See 6D FR 21606, A ril21,2004.1

NO# SP Call for GeorgIa (sm 70 FR 9897, March 1, zoosl. Mismuri's omissions ropartLag begins with 2006. Thase emissions repodng requireinants undor the N ~ x SIP all affect tho District oCColumbia and 18 althe 28 States aHocted by the proposed C A R

As noted abnvo, tha otharset of pre- misting emisslam raporting requirsments is codified at subpart A of part 51. ~lth~uugh antitied tho ansolidnti3d Emissions Reporting Rule (CEM), this ruls leR in p I m the SQparatP §51.322 for the NO% SIP Call reporting. The CERRroquiremsnts wnre aimed at obkhhg amissians information to support a broadersat o l purposes under the Ch4 then wBre tho rnpnrtlng requbrments undorthe NOx

week $ y emisslons for point, area and

Wo bwar~cenfly propose z to stay the

Federal RegisterlVoL 70, No, 91 /Thursday, May 13. 2a05 /Rules and Regulations 25271

SIP Call, The E R R requirementsapply to all States

LIko the raquhmants under tbo NOx SIP call, ~e CERR Equims orting or ali SPlrreeS et a-year Intarvals go,,, 2008,fitc). It roqufras reporling of wrtain lwga sources avery year. However, tho m q h d reporting date undertbo CERR is 5 rnontbs later than under tba NOx SIP CelI raporting requirements. Also, missions must he rapoaed for the w h ~ h year. fnr B typid day in winter. and Q t id day in summer. but not for #f;-rnonth OZORB season as is required by the NDx SIP call. Finally, the CERR and tho NOx SIP CaIl differ in what non-adssions data eIarnont5 must be repotttad. 3, Summa~y of the Proposed Emtssions Reporting Requirements On JWB 10,2004, EFA published EI

SNPR (69 FR 32684) to EFA's Ianunry 30,2004 pmposd (69 EIZ 4566). The EPA's main objectlve 1~1th res ect ta emIssIonsraporlIngwas io ad$ limited new requirprnants far emlssIons soports to sowe tba additional pluposas of verifying the CAlK-reqnhd emf ssinns mduclions, The SNPR also sought lo harmonhe tho CERK and NOx SIP call raporling rsquiroments with rwpeet to specific data dements and mnsolidnto them entrrely in subpart A, and i o roduee and simplify tha repurthg requiamsnts Inseveral my5,These lalter changes w m propossd to h applicable to all Status, not lust thoso affected by the CAIR emissions roduetinn xequiremants, The major changas included in the SNPR m described below.

Amendments worn pmpnsad to subpart A, which contaIns 551.1 though SIAS and an appeadb and to 551.122 We also proposod to add a m w 551.125.

pmvisions, WI pmposod to abolf sh cortain requfremcnts onfiely. and to mplnce certain requiremanls with a mss Tefnrance to subpart A so that dotaHad IW of required data elements appeared only in subpart A. As proposad, 951.122wadd then hava specified what poUutants. sclurcps, and t h o parlads the States subjnd la the NOx SP Call must report and when, but would na longer haw listed the detailed data dements r u h d for those reports.

have been functionally parallel ta

sources, and time periods the States subfact tu the orouosod CAIR must

b h$5l.lZz,th~~&s~&~~

ThB proprJ3 new 551.125 would

§53.122, SpPEifying dl the pOhkI&o

slernmts for a11 three reporting pmgnms IC=, NOx SIP Cdl, and CAIR) as mell as pmvided information on submittal procadurn. definitions. pad Dthw gmsrally applicable provisionns,

Taken tageiher. the premisting nmissions reporting requirements undar the NOX SP Call and CERR were dreadyrather comprahensive in 1 a m afthe Stetas covered and fhs information reqtrimd. Therefore. the practid impact aF&e proposed chaagos wauld hava impmad only thrae new requirement%

First, in Arkansas. Florida. Iowa. Loulshna, Mississippi. and Wiseonsln for which W B proposad and are

contribuUon to OZOLW nunattainment in another5tats but which were not among the 22 Slatas already subject to lhe NOx SEP 011, the re u h d emisdons reporting wad% bn expandad to match thorn of ths 22 Statas, Tho proposed change would require that hay mport NOx emissions during the 5-montb ozom season and lor 8 typical summer day, in addition to tho existing requirement for reporting missions €or tha full year. We proposed &hat this ngw requbment bugin with the M e d a l fnventory year prior la the CAR implamantation d a h Tbis wouId be tha 2008 invmtory yaw, tho roport for which would ba due ta EPA by June 1, 2Q10,

Second, uader ths existing CERR. yearlyrepotting k- r 8 q h d O d y for S Q K m S whose emissions oxcasd

B C ~ E ~ mounts. Tha SNPR proposed Zmtth~ 28 States and t h o I3istriet of Columbia rmbject to the CAIRfor masons of P M a must report to D A aach year a s ~ t of spdfiod data dements hr al? soums subject to new eantmls adopted specifically to mmt the CAIR requlrrtmonk mlatad to PMm, unless the s a m s participate in an EFA-administered emIssIons trading program. We proposed that this n8w r e q i r b e n t begin with the 2009 inventory year, the rep& hrwhich will be due ta EFA by Juno 1,2011. Tbis new requfremont wauld hnve no effect on Stalas that fulIy comply with the CAlR by roquirhg thek EGUs to participata In tha CAIR mode1 cap and trade pr

T ~ M , in a ~ i ~tatos, wa p r o p s e X Y expand the definition ofwhat sources must report in pnint s~urce format. so that fewersouress would be includad in non-point source omIssions121 We

fUrdiU'Ilg 8 fiUdhg O f d @ I C d

proposed fa base the roquirament for p i n t s m c e format reporting on whekher the some k a major soum undfir 40 CFR pnrt 70 €or the polhtanls for which repodng is raquimd. f.e.. for CO, VOC, NOx, Sol, PMu, PMia and ammonh but without regard to amissIons of hazardous a k pollutanls.

would have reduwd mporting raquiraments on Stites or provided &em with sdditional aptIons. Two of

proposed chanps in this a t q o r y are of special nole in understanding the final TB ulmments of today's a la . [The

B x p h h d in !hD s"PR at 68 32697.1 The NOx SIP Call rule requiros tha

aEectod States to submit amissims Invanbry rapnrts lor a given ozone season to EPA by hcomhar 31 of tho following yaar. The CERR requites similar but not idsntid ropmis from all Stat= by tba follawhg Juna 1 , five months her. Wu pmposed to mom the December 31 reporUng requiromant to the following June I, the mare genarally applIdda submission dah alfeetbg ell 50 States. Wa asked for comrnant on whatliar allowing thh 5-month delay is consfrtent with the ah quality g o d s served by tha amissions reporting requiromennts. i-borvever, WP alsn askod for comment on the diernstlve of moving forward to Dseember 91 & or part of theluaa 1 maporting for all 50 Statas. In particular, w e solidtad comment on repking that point sources ha rgnrted on Decsmber 31 and other sources on June 1.

We also proposed to eliminate B requlremeat of the NOX SIP Call for a special akources roport by aEfeded States for the y~ar2007, dun Decambor 31, zooa 4. Summary olCommnnts Receivod and EPA's Responses

A number of commsntm ob eded to

short to allow for fuIl understanding DF and comrnmt on the Bmisslons reporting changes tbat EPA hsd propasad With res ect to this isme, Wtl bdisvas &at & mmmmt period was sumdent for those proposed changB khat would affect the Sbtos subject to tha emissions reductions

C A A t o t n d i m l a a m n ~ o r m u m d ~ m u ak potIruantr.w?lrEh couldha POlnl mur=As

A number of other proposed changes

remain 8 Ir of these cbanges w m

tlm 45-day comment parlod ns 6 dng too

t h 8 t m " W LDlllCDUhES2dhSF.dttlPI3 11ZDTIhB

682 25272 Fad& RegistcrlVol. 70, No. 91ITbursday. May 12, 20051Rules and Regulations

roquiramenis oFlha CAIR and that ere SpeciFicaUy d m m d at ansuring the efftxtivenass artha C A R nomoly: bl The regukemennt forsix mom Stales to report Dzone smson ~missIotls, and (2) fhs requIremsnt fnr dl sabj~ct States to report annual emissions horn wntmtled snulas every year ifthose source3 are not participating in ths amhion tradlng programs. Tbase proposed changes am oasy i o understand on thoir face, and a150 have dose precedents 3n thn NOX SIP Call, Morsouat,iho Statas afiocred by these propased m ortfng raquiramenis w m i&ntihd as being subject lo tho pmpnsed emissions radhcfian requhmaats ofthe CAiR in &e origIaa1 NPK and thus they knew to bo a h to the contents of tho SNFR We also consider t h ~ cornant period snffident with mpsd to two ohor spocific ehmertts of t h ~ pm mal, namdy 131 tlte proposal to JLninetB &s 2007 inventory reporting Fequimment U d m the NUX SIP C d and (4) the pmposd to ckmga the rapurtjng dele for the NOx SIP Call from Decornbm31[1Z months aftar the end o F h raportad pnr] to June I [IT months a f t m h and

madily uudnrstood proposals, and hhe Statesaffected by them were among ihose initial?y identified BS subject ta t l t ~ CASK ItsaIf. A number of substenthe mmmonts wem recoiwed on these four proposad changes. Thmfora we have wncluded that tt is appmprhttte to ansidar tho substentive commsnts that wera recsIved on these four ellsmenls of the SNPR and to take final a d o n on thorn, Tho disposition of t h ~ ramdning dements of tho SNPK Is dismssd further halow.

Tho P A mcaivad m e comment &om the Mississippi Department of Envlronmontal Quality on the proposed mquiremonl that Mississippi and five other States repurt ozone season emissions. Mississip f disagreed that they should bB i n d u b With thB other Stat05 subject ta t b o CAR provisions, including thn emissions reporb providom. The EPA has cmdukd that the analysis performed to support CAIR and dscussed earlier In this pmamblo amp1 demonstrates that Miissippi shourd bo fnduded in tho CAIR and subject to the (=AIR omissions reporting ra ulomanls.

specifically on he proposal to raquim States to raport m u d omissions every p r Emm sources mntmllad to comply with t h o CAR, ifthose sources nre not participating in tho emission trading programs opentad by PA. WMla we q D c t the number of such SOUTCBS to he smau if not zeru, wo continue to bdfove that traeking their emissions horn year

of t h e mparted year]. Thaso wBr8 also

G o dld not receive wrnmanfs

to year is B prnpriate, and wo am finalizing &is requirement. since the CEMl already contains a requkement for svety-par reporting of emissims from poht saurms abovo cartah adssion thresholds, this requhment will have an incremental Impact only if States choosa to wnmI fairly small point sourccs or aonpoint or mobib somces 8s part oftheir $an for meeting the CMRro uirements. The d A received s e v d comments

FBgardIng the aIimSnation uf &ha NOx SlP Call spetiid all-souureos 2007 smissfons invantory. Thase comments all favorod thu slimin~ation of tha 2007 emissions inventory. which EPA i s romul ating In today's rul3. We would

containad no requirement that any State make a r8trOSpEctiv8 demonstratian that actual statemda emissions of NUX wera within any limit The requirement for tha 21107 invontory was for the purpose of propam evahation by P A . As

Iained in b e SWR, wa believe &bat 3 g h t orthe data on 2007 emissions that will be availabh from tha NUX trading program and Lhe furthsr reductions in NOX requimd by &B CAR, the 2Q07 iavantary submissions hum &a Stales are ant needed for this p OSB.

?!a EPA also proposed tu h a d m the raport due dales for tbe NOx SIP Call, c m Q 12 rnonrhs a h the snd of 8 e mported year, and for the t=ERR, m e n d 17 months aRsr tha end ofthe

months, but askod for wmanls on a lz-month due data Saveral mntments wera rsceived, all favoring harmonizing the report duo date at 17rnanb, tVhfle we continue to beliwe in the aEdancy advantage of harmonized submission date requbments, we Bra not h a k i n g this &angee. Tho EPA has reconsfdared this parl ofthe proposod emissions reporling requlrements and believes that St may bs in the interest of !he public to mavB in the direction of shortwing the emfssbns raporthg eyde for all three raportiag raquhments [CERR, NOx SIP Call, and CADI), mlher than accepting the longer C a c y d e for d l area reporltng requirements. Irr taday's End mle, we are rataining tho 12-montI3 submission dale mq~tmnmt OF tho original NOX SIP Coil for the Stales dmady subject to It. For thtr sixstates that are aawly subjmt to roporting ozuneseason NOx smIssions and for the new tequirwnent for every-ymr reporting by soums controlled ta mmt the CAR raquiramants for Sot and NOx annunI 0mIssions reductions but not Indudod in the trading programs, tha required reporting date For States will be

P d &a to arify &at tbs NOx SIP Cell

roparta i+ year. The H A roposed to barmonlze &a d3m F , , r l O t h at I7

June 1.17 months aRar the end ofthe raporhd yaw, BS was p p 0 5 e d . We will addrass mp~rting deadlines ~ m p ~ e n s i v f l l y in a s~ppamte NPR which will propose a unified, but shortor p a i d oftrrna to report to BPA. Thissepm!~ notice will allow formore public comment on tha reportin cych The duel approach to reporting $ue- dates retained in toda s ruleivill be combined into un i fddus dates and will bo influenced by wmments receivsd in rosponse to our prupwal when the separate rulemaking is compIolad

Regarding laments ofthe proposed tequimmsnts bqond these bur, ~AL, thn taquhments that wauld have affected Stetes nut subieeted to the CAlR emissions rsduction requimmants as we11 as CAlRStates, many cornmentars said that EPA should not have included changes to national nmissions reporting requtomants In EI proposed rula placing emfssinns reduction requimsnts on only cerkh States. Commenbrs &a qusstionnd whotltor EPA had given adequate lima Tor comment on tha mom detailad ravisinns in required deta elements, definitions, ob= Substantlvely, many commenters supported some or all ofthe proposed changes, hut some cornrnenters objected to some ofthem.

comments. Without conceding SA'S lggd authority io include thaso provisions in the final ruIe in light of the history of proposal, public haaring, and comment period, E A has-in an abundanca ofeautlon4acidad to omit t h ~ ~ provisions h m today's rub (SOP sectionVKlB.5 Summary of the Emissions Reporting Re uiremonts below for the changes whch ara being finalized today). WE will ropmposs them, with modificaiions. h a separate NPR lo d a w additional opportunity for public comment by all affectad Stalos nnd n h r parties. 5. Summary of tho Emissions Repodhg Rsquhmsnts As a result 01th w m o n t s received,

EPA has wvissd t h ~ nm1ssIons mporting raqubemants of today's mIa by limithg new requiramants to the ones whwe suEciant noUcu and opportuaity for commant was clearly given in ihs June 10,2004, SNPR and that aithor: (1) Are nemsary for the monitoring of tho im lamentation of die emissions

[z) am changes in mporhg undor tho NOx SIP Call linkad to the CAEL Tbrca specific emissions reporting provisions that change tho pm-nxlsting rB uitameats m induded in today's

The EPA bns Eonsidered t h ~ s o

re B uction raquimmonts ofthe C A R or

m P u,

25274 Feded RegisterIVol, 70, Nu, 9l/Thursday, May 12, ZOOS/Rules and ReguIstions

programmatic ehncnls throughout today's rule for further information on each aspact. Stat0 Partrctpatfon

emissions redudons howover they chose. including developing and impIementlng their own iradlog

P?g.%ks may elect to parttcipate in an EPA.rnaneged cap end trade propam. To artidpate, a Slate must adopt the r n o h cap end trade rules fmdized in this soction of today's rule with

i flexibility to modify sections regardln NOx allocations end rvhothor to inch e individual unit opt-in provisions.

States may parlfcipate in EPA- managed cap and trade rograms Tot e lbar the annual NOx. t;, e ozone-smson NOx. h e Sot. or any combination. The State can only choose to pattlcipale in the EPA.adminfstercd, CAE cap ond trade m~.ram(sl that is [ml relsvimt to

States havo f l d b i U t y to schleve

- - tberr b&gIsi.-

n e annual N O W model rula is to be usadby only &os0 itatos that em d f ~ e t d by the C A R P M u 5 d i n . Tho ozone-saasonNOx modefmle Is designed to be used by those States that am affected by tho CAIR ozone hding as well as taka tho place oFtbe NOx SIP Call rflquframenls.'" The CAIR azone-seasnn NOX program will

that EPA will admInSster. Bemuse EPA will nu l o n g a r m a NOX SIP Call -dins progmm, Slat= may Include tbelr NOx SIP Cull trading sourcos if lhsy adopt &e EPA*a&lnlsterad CAIR oznne-masan NOX ro

The 50: rnod&ng&md to satisfy tho ongoing statutory requhrnents ofthe titlo IV Acid Rain

sequential camplrance with titlelV and thhs WR-ror MUFCOS k the CAE reginn that aro fleetad by both iha Add Rain Program and the C A R Trading Sources

Statas must achisva all afthe mandated emissh raduelrons hom EGUs lo p d d p a t s in EPA-managed cap and trado progmms. Stales may include o&m NOx SF 13Il tradhg sources In the omnweason CAIR NOX cap and tmdo p r o w and still partfcipata in PA-maaagad cap and tmde programs.

Sfates may p d d p a t s In P A - managed a p aad trade program

bB the Ody O=n6-S3aSOn Nux p m e

S a ~ a p and trade progmm--With

whether mnot dtey adopt the optional individual opt-in provisions of the made1 tule. However, if the Stale Ehoosas to a ~ h v individual CDUrcBs ta opt-in, the opt-in requhemanls must

rUIe.

Emission ATiowancas Tha CAIR annual NOx cap and

hado program will mly upon CiiIR annual NOx allowances allocated by the Slatas. The NOx SIP Call allowancas and CAE ozonwseason NOx allowances Eannat ba used far compllanee with the annual CAlRrreduetion requhrnaat Woto that alIowancas from the Compliance Supplement Pool [CSP) wfll bo CAIR annual NOx albweacas.)

L Tho CAR ozonm-swon NOx cap and trade program rvm rely upon CAE omne-season NOx allawances alIacated by tho States, ln addition, pra.za[19 NOX SIP call allowances can be banked into 8 e program and ussd by CAIR-affected s~urcas for compliance with the CAIR ozone-smson NOx program, 7 % ~ NOx SIP Cnll allowances of vialages 2009 ~d later can not be used €or compliance with any EPA-admMsted cap and trade M a m .

&e FAIR SO:. cap and trade progmrn will rdy npon title IV SO: doivmcos but may elsa Indude a d d W o d CAR SO2 a l l o w ~ c a ~ , s h d d a Stale that a h v s an individual untt opt-in machanhm provide C A E 5 0 2 alIamacar; to an o p t h SOUTCB, P* ZOID titla IV 50: alIowances can be used for corn liance with fha CAR

Sulfur d k d e reduehms are- achiaved by requiring sources to mth mare than one allowance for sach ton of SO1 amissions. The emission vdue of an SO2 a l I o v r a ~ ~ e is independent ofthe y ~ a r In whlch It is ussd, but is based upon ils vintage (Le,, tho in which rbo allnwnnce i s issued). Sulfur dioxide allowamas of vintago zn09 and sarlkr oIket one ton of SO2 omissions, Vintages 201 0 thmugh 2014 offset 5.5 tons of emissians, And, vhtages 2015 md beyond offsot 0,35 tons of d s s i a n s , AIIocation ofii~lowancw to Sources

already received aUowances through

d h C k thB t@qUfmi?Mnk Of tb8 mDdd

Far SO: allowances, SDWBS have

annual &id ozDne-saBson programs) will IJB aheatad basdupnn tha State's choson allncatlon malhodology. Tho EPA's model NOx rulas ham provided an e m q l a altomation, complete tvilh rqutntmy text, that may be usad by Stat& or replaced by t a t that implements a Statas dtornative

Complianca Supplement Pod (CSP) Each Stab will bave a share of the

Csp tbat Is c o m p m d ~f200,n00=4 CAIR annual NOx dawancns of vinlagn year 2(103. Tbe Stata may dhtribute fho CSP albwancas basad upon the m'toria. found In t h ~ SIP Appmvabillly section of today's rule, fnr oariy redudons and mad. Emission MonItoriag and bporting by StrUICaS

Sources monitor and roport !heir emissions using part 75. This indudes individual 50urwS that opt& to tho

p'?Ek information management. omissions date repdng. and downnee trading is dona through o n - h a systnms similar to those currently ussd for the Add Etain SO2 and NOx SIP crrll Programs.

Emission monitoria and reportirig for both the CARannud and orone- smon NOx cap and mde programs will us0 part 75.

Cornplinncs and Penalties Compliance for thu annual and

wnoeeason NOx cap and tmde programs. a5 well as fhs SO1 program. wiIl be determined so r n t d y . 1 ~

Fnr the NOX ond EO: map and trade p r o m , mi snurce found to have

dawmces sumdent to offset the BXC~SS omlssians; and, [z] surrender a~owances b m thBnext contra1 pnriod equal to thmo times tho excess emissions. Comments Regarding tha USD of a Cap and Trade Approach and t h ~ Proposed Struetura

supported the us8 of s cap and trade a proach and tha m a d bmework of do model mlas to adhiove the mandatod amisions redactions, Some snpported the usn of cap and lmdo for achiovhg regional. emissions reductions bnt noted the noad to have additional measures that ansure that emission reductiom taka lace in noaattahrnant arms, This

reducing fransportsd Sa and NOx through a regionwide o p nnd trade apprmch and encoumging States to take cnmplernentary m o m s to address thoir pwtieuIar, persistent nonattainment hues. (Noh that comments on q a c i k machanhms

etxeess smlss Y or15 must: (11 Surrender

Cornmentea ovarwhelmingly

is inin0 WiLh tha EPA'S strategy of

Federal Register/Vol. 70, No. 91 /Thursday, May 12, 20051RuIes and Regulations 25235

withfn tha cap and tmde p r q m am discussed in ihe fopic-spaeificsections that follow,) 3. Whok Is the Process fur Stales To Adopt the Model Cup and Trade Pmgrams ond How Will it iniemct With ExisUng Pmgmms? 1. Adoplhg the Model Cap andTrade PmgrSmS

Status may c h a w to participnts in the- EPA.adrninistomd rn and h d a progmms, wbtch am a Iu P ly appmvable a n ! d sbategy for achluving all of the amissi~ns reductions requlmd under today's rulemaklag in 4 highly cost- effmtivo mannw. Statss may simply reference the model rules in thoir Staia rulss and. thereby, comply with tha rquiramants for stabwide budget damfinstratinns detailad in snction VILB of today's prsambla Affoeisd States for bofhPM3 and omni ean ndopt the annual NOx and 502 cep and trada programs In part 96. subparts AA through 11, part 96 subparts JuW through Itr, and AAAA through M. Stam with ~Zom-sBason only CAlR Fequirements f.f.e,, Arkansas. Conneaicut Delaware, MassachuseMs, and New Jersay] can adopt the ozone- s w o n CAIR Noxpmgram [subparts M A through UlI). Part 98 mbpatts AA thmugb n and AAn through III cm bo used by Statas that am alfeded for only PM~J (i.8., Gemgh, Minnesota, and Toxas), States that e1aa to achiavn tha required reductions by rosuulatfng other SOUTCBS or wing other approaches will folluw altanrate S~ate requkemmts, also desmibad in section VILE of today's pmambla

As pmpased, EPA Is raquirhg Slatas tha t wish to participate ia the EPA- mmaned cap and trado p r o m to use the modo1 m l ~ to e n w e that d 1 participating s o m s , r a g d m of wMch State in the CAlR region they am locatad, am subject to the m e mading and allowance huldhg requirements. Furher, requiring Stalas to USB the complete model mh provides for a ~ ~ ~ m t s , cortdn. and errrrsistent quantification of emissions. Becauss srnissions quantIficalfon i s the bask far eppIying ths ernSssions aulhortzetion providad by mch allowance and emissions authurhthns (in b e form of allowancpsl am tha valuable mmnodib traded in tba market. the erni~sions quantihtion r 8 q u h s n t s oltha m d e l rule are nemsary to maintain the iatagrily of the cap and trada approach of tho program and !herahre, to insurn &at the onvimnmenia1 goals OF tho program am met

Far Sfufes Electing To Purth'vate in the EPAAdm'nisiered &me-Season CA 1R NUX Cop and Trade Pmgmrn

Stat= that wish to achisve their CAIR ozona-smm raqdraments through an EPA-administered ozone-season NOX cap and trade pmgnm will rrdopt the CAIR model rula in subparts &~!IA through lm Mote that the EPA- administered annual NDx CAIR cap and made program fs Indepondent of orona- ssasan CAlR NOx modal rule.] Bemuse E A wIll no longer admrnisterths trading pmgrarn for ths NO, SiP Call, Slates that wish to wntinus to maet &sir NOX SIP Call ohligations lhmugh an EPA-admhlstered cap and trade progmm will also adopt the CAIR o ~ o n ~ s m o n modal rule. NDx SIP Call Stales will "sun setar thair NOx SiP Call mIas for sources that willmove Into the CAIR NOx azonu-season program. Part G6, sections A-J [Le.. !he NOx SIP Call trading d e ] will continue to be available for the NOx SIP Call and will not ba mrnoved for h e C A E Tho CAR model rulos spncSfidy address haw NUX SIP CaU allowances mq forward IntP the CAE NOx ozoneseason program, [Section MA provides addftiond discussion of inhaelions botwem the amand &a NOx SIP

For States Hecting To Parthipole in ihe EFA-Admhistered Annual NCr, &p and Tmde Pmgmm

Slates that are PMu affected and wish to participate in an EPA-administered annual NOx cap and trade pmgrarn will adopt the llAIRmodel rula In subparts AA through IT. States may pdclpate by elther adopting the modd rule pmvjsions by refmnce or edifying h a mndd ruIe la aelr Stab regu1slians. For States Elmling To Padfcipala in the EPA-Administered SQ Cap and Tmde p m v

provisions, whatbar by incorporating by reference &a CAR SO2 cap and Trade d e @t96, subparls AAA through IIII or codifying the pmvFsIons of the CAIR SO2 cap snd trade rules, in order to participate in the EPA-adminisbred SO2 cap and bade progmm, The CAIR SO, madd rule works in conjunction with &EI A d d Rain Program pr~Vrsions, which are i m p h e a t a d at tho Fodaml level mdwiIlHny Inplace, Today's aetIon also finalizos some ren'sfons io the Acid Rain Program &e., pnriS 72'73. 74,75, and 78). [Section E X . B of today's preamble provides addMona1 discussinn of Interactions between tha CMR and tha Acid Rain Program and changes IO the Acid Ruin Progmrnl.

c m

States may simply adnpt new

Comments Regarding the Pmcess for AduplIng the Model R d e s

proposed process and emphasimd tha imporlama of workabla modd rules, bscauss dates with limited rasources am likely to incorporats them by referenca or heavily rdy OR thorn as tho basis for State nhw. 2. FIexiblIfty in AdoptItlg Modd Cap and Trade Rules

a Slate-to-State basis with the basic requirements ofthe cap and mds approach when implemoniing a multi- State a p and h d o program. Such comis~nq B ~ S U M S the Presewniion o t tha integrity ofthe cap and tmde approach so that Lhe required emissictns reductions me achI0ved; smoath and sfficlant opmlion oftho trading market and inhaskucture a m s s tha multIState CAIR region so that camplfmw and admlnIstralIva cast5 are minimized; and equitable treatment of owners and oparatars ofregulated SOU~CCBS. However, EPA bdievas tha t some Umitnd dfirancas BTB pnssible without Ieopardfiingtha snvimmmfal and other goals of the progtam. Therehm. the final rule ~ I O W S Stat= 10 modify tho model rule languqe to best suit the& unique eireumstances In a few, specific

First, States have the BexibiIity ta include, as full -ding arlnoa, all trading s o u r c ~ affactdby th3 NOx SIP Call In the ozone-swon CAR NOx cap and trade pmgram.Tbis i s an outgrowth of the davdoprnent afthe CMR ozone- ~ m E O l 3 NOx program, which will be the only ozone-swn NOx cap and tmde program admimisterrod by EFA. In addltlm, Statesmay davdop hhek

own NO% alfomthns rnetbodalugglas, providad slloeatlon fnfomation is submimd t o BPA In tho required t I m ~ l f r a m ~ (SsMion Vm.D of today's pmmbla dismsw unit-level allocations and the xelated mments in greater dat811. This indudes B diseussim of the provisions sslablishing the advance notice States mmt pruvlde for unIt-by-unit a1 1 o catiansl-

Lastly, States using tha model cap and tmds mIes may d a d to inckde provisions that allow individual units to "opt-infD to tha cap and mado programs, States that wish to include this mochaaism must adopt pmvIsinns discussed in se&n VDLG of today's rulemaking. Adopting the Individual unit opt-in provisions, which would allow non-6GUs that maet the opt-ln requlmmunts to ontsr Into &B EPA- managed cap and tradB programs, d m no! preclude II Stale from participating

Commenters supportEd EFA's

It Is important to have consistency on

sex.

25276 Federal RegisterlVol, 5'0, No. 92 /Thursday, May 12, 2005 /Rules and Regulatians

in lhhe EPA-edministamd cap and trado pmgnms. C. What SoumsAraAflcled Underthe Mudei Cap and Tmde RU~QS?

la ibbe Isnumy 2004 m. EPA mposod a mehod for davdophg

eudgets that assmod reductions only from EGUs, Electric GaneratIng Units were defined w Fossl~ i u s l - h d , non- cogeneration EGUs servlng agensrator witha anmeplate opacity orpatar than 25 MWe; and fossil fuel-fmd cogoneration EGUs meeting certain criloria [referrod to as the "'h potential e1sm-c output cnpacity critorin'). In the SNPR, we proposed model cap and made rules that nppliad tathe same catBgorles ofsources. We ELM finalizing the namepla~e capacity Eutsfftltat we M wed In the NPR for developing

and that WB proposed in the SNPR for the applicability oflbe modd tradIn rules. We am elsa finalizing tho "fossi8fuel-fired" d8fliUon sad !he 35 olacth output ca acifiy criteria that w m pmposed TL actual rule language in the S W R daseribing !he- sources to svhIch Lhe model rules apply 1s being slightly revked to bB cIear8r in response to some comments &at tho propasad languega was not dsar- I. 25 MW Cut-Ofi The EPA is retdni43 the 25 MW cut-

o f F h EGUs for budget and mode1 rule purposes, The EPA believes it is reasanahla to assum~ no W a r mnml ofniremkions from smdlar EGUs. Available alr omIssioas data Indimto that tho cDllactlvo emissions fmm smel1 EGUs are- Fel~tlvIvel~ small and that fw&rumplnting their emisshs would be burdensome, to both tbe ~ g u l a t d communi and rquhors , given the

For axamplo, NO, and SO1 emi55iot15 barn EGUs OF 25 MW or loss in tha CAIR @on ropmsont approximataly o m pmant md two percent oftotal NOx and SO2 emissions from €Gus, respeetivcly. There aro over4000 EGUs of 25 MW or less in the CAIR roglon.

administmtiva ~c t io t l s fo amtrol &Is targapup withsmall missions would bo inordinate and thus doas not balieve thnse small units shnuldba induded. This epproach afuslng a 25 MW cut-aK for EGUs is wnn'stent with oxisdnE: SOX and NOX cap and tmde p m p m s such as tho NOx SIP Cnll (wlrare &tins and naw EGUs at or under this cut*ofFm, for sIrnIlar masons, not required to Lo Included] and tho Acid Rain Program (where !his cut-off fs apphd to misting units snd to now units combusliq dean fual). Also, EPA's New Source Psrformance Standards usn an

relativaly 7 erge numbor ofsuch units,

CPnsEqUQdy, EPA bBuaVW that

apptcabllity thrar;hold of appmxImably 25 M t V undar subpart DB.

One comrnentorsuggesled a plant- wide cut-off of 250 MW. This commenter suggristad that including units botween 25 and 250 MW would caum these units to shutdown but failed to provida any analysis tu support its claim. Such a cut-off~~ould be incoasistmt with other existing SQ? and NOx eap and mda program 85 noted ahnvsi. The EPA a s t h a t c s that eppmdmatdy Ya o f h Sa reduellons, and 10 e m f of the NDx raductioas,

plants bebeen 25 MW and 250 Mw. Our modeling shows that snma untts bdow 250 Mriywill put an cantrolsas part of ourhighly wst.wffeetiwe set of conkd actions. The unils alsa hava tha option to coal-witch, alter dispatch, andJor urebase allowances.

An& cornmentar suggested that, in Iiau oltha language proposed in the SWR, EPA adopt 8 d&nition for BGU thnt, accordhg to the cornmentar, is the Add b i n Program's definition of affgcted utility. The commanter stated that the Acid Rain definition of BGU is "d fossil fud-fired units with n namephtn wpacitygreaterthan X MW supplying mora than % of patentid electrical ouput to the p*&" Howaver, the commanter misstated the Add Rain definition and c o n f w d the Acid Rain applicability PrOVidOIlS concerning utility units in gensml with those provisbns concerning cogonamtion untts In PartfcuIar. The Add RaIn Progmm cove=, with certaia axception6,'20 all exisling €asdl fuel- fired units p a l e r fhm 25 MW that pmduce any elecbieity far sale; and new lossil fuel-fiFad units that produce any electricity for sale, Tke language referenwd by the cornmonter concernfng obntIal oloctrlcal output applins, in %, Add Rain Program. only to cogeneration units, not alf fossil fuel- fmd units. For nonageneration units, them is no exempUon h r n Acid Rain Program m q ~ h n e n t s based on the unit salling a "small" amount of alectricity for d e . ??le provisions in ths NPR and the SNFR concerning mgemration units am discussed below. 2. Dennition of Fosd Fual-Fired

requir s under today's rule come fim

Tho EPA is finalizing the rop~ssd dsfIdtIm of fossil fuel-fire d ,.!.e., where any amount of fossil fuel i s used at any time, This i s ths same dofinition that k used In the Acidhain Program, One EommrmtBrsuggeded that the prnp~sed definition I s too broad and that EPA

should we in the CAIIl Program the sarm definition that is usod in tho NOx SIP Call, i.e.. whore a unit USBS fossil fuel for at Iaast SO pemnt nf its nnnunl hsat input during n spedfind poriod. The sama commentor also prciposad mcludhg large waod-fmd bollers and Mack liquor mcovary furnaces. The commenter's definition would result in units already subject to tba Acid Rain Program in agiven Stab being oxcludad from the CAIR Program and the model cap and trade rdes n p p h b l e in that Stale. Such a x e l u s h would make it mom diflicuh to enordinah the Acid Rain Program and the CAtR Program. Consequently,EPA rajects tha commanter's more r&Acted dofinliioa

past-1990) unitcthat am 25 MW-nr Isss and burn other than clean Fuols am subject Io the Add Kafn P r o p btlt not to the CMR Program. Homvor, thore are very f8w such units, and E P A h declded to exdude any units that are 25 MW or lass on o b r grounds &cussed abova 3. fiemptlon For Cogeneration Units

As propmd, EFA is RnalMng an exampff on fmm the modd cap and trade programs Tor cogeneration m i l s , Le., units having equipment used to produce 8lECbiCiQ and usofd thema1 enorgy for industrial, commmcid, hmUng. nrcooolingpurpnses through sequmtid USB of energy and meting caaJn opmtlng and effidonc standnrds [dimssedbdnw). EPA is adopting thepmposod definition d cogeneration unit and the proposed criteria for determining wMch cogeneration u n i ~ qualify for tho axmaption from the model cap m d imde programs. Ths CAlR trading program has

dmereat applicebiliw provisions for non-cogmeration units and cogenneraff on mils, If a unit init3aUy

ualifics BS a wganemtion unit, and far %E sxBmption Gum the bdfng pmgram for csrtain cogmeration units, but subsequently h a s its cogenoratio~unit status (e.g., due to chapgus in operation]. suds mlt loses t h ~ cogenemtton-unit 0xemptIon and becomes subject to ihe applicability criteria fat nan.epgeasmtim units, regaxdIess of any future changes in the unit nr its operations, If, under tho non- cogeneration unit applImbIlity criteria, the unit bammes subject to the trading program, &a unit will mmaln subject to &B prugtam h tho fitture. Conversely if a unlt Initially does not qualify as a CogoneratIon unit, such unit bacomes SUIJ~EIA to tbn epplicabdty aitaria for non-cogeneratinn units, regardless of

Fedeml RegisterlVul. 70, No. 91/Thursday, May 12, 2005IKules and Regulations 25277 I

any future changes in the unit. If, under mch criteria, tho unit is subject to &E trading program. the unlt will remain subject to t h ~ program in the futwa This approach to appIIeahility means that unfts [other than. in some CBSOS,

trading pmgram, which, If all~wed, tvauld make it difficult for EPA, States, and own- or opemtos to determine which units should bct complying with trading program requirements, and during what y m . and would likely result in more non-mmplianca problems. a. BEclency Standard for Cogenemhn Units

Tha EPA pro mad nparating End afficieney stangards lis., ths useful thmd anorgy output oftha unit must be no lass h a a cartain p m t of the tntal anergy output and, in some WSWo useful power must be no Iass than 8 certain porcont of total anergy input] in tha SNPRthat a unit must m e ~ t in order fo qudi as a cogennamtIon unit. Etha

than it may be eligible for exompUon from tho CAIR. dopsnding upon whehr it rnaots additrDna1 o eralhng dlteria, discussed bolow. & $mused In the NPR, EPA proposad tha same o orating and aflichcy standards for a i fossil fud-ked units trogardiess of wltethcr thoybum coal, oil, argasl. In addition. nut applying &B appemlrng and effidsncy$landards to wd-fired mi$ would be countor productive to EPA's efforts to mduce Sa2 and NQx omissions under this pro asod d o because ofthe re~atiivaly iigh SO^ anti NOx emissions h m mal-fired units, la p d c u l a r , without upplicalion af the effieteney standards to coal-fired units, highly IneEdenl coal-fired mlts, which have paaieularl high amissions par Mwhr generaleg, could bo oxempt from tho CAE P r o p m . In addilion, if coal- fired units were not subject to tho o p m ~ n g standard. the potentiat would exist for 8 cud-fired unit to proulde only a token mount of usaful ffiamaI anergy end still qualify for a cogeneration unit exemption from Lhe CADI Fmpm, despits having roldvoly high H m is s i o ns, One wmrnanter suggstsd that EPA

5b~uld not tlsa the aEdency standards fmsolid fusl-fired cogenantion units, because it may mquHe soma coal-rued wgneralion units that wnre tlxempt from tha Acid Rain Prpgmm to purdase CAIR allowances, Howavar, tha EPA snrtlysis indicatas that must misting solid fuel-fmd cogeneration units nlfeaed by this rule WN meat tha proposod standard. SOB TSD entitled "Cogeneration Unit Efficiency

ap!-in Units] m o t go in and aut O f tho

unit qua ?if LEE as EI cugm~ratlon unit,

Calculations" in the dockat. Ta !he oxtent any solid fue l -hd coganeration units cannot meet the efficisncy standard Pnd beeama &mind units unda the C A S EPA boliaves that, considoring their relativdy high embsions of SO:. and NOx compared to ail and gasfired units. it is im ortant to

afficimry standards or be subjed to the omission limits uaderthw CAIR Fmgl3rl-i.

Anoth~rcommeatersu esbd that chs elEtiancy standards svould not apply to sdld fuel-fired cogeneration units bwuse solid fual-fiad uait offidoncy is based on HNV (higher hating vebe) while gas, or ail-fired unSt affieieaey is basod on LHV [lower heating value]. The EPA analyzed a mngaln of solid fml-fired cogenamlion units and calculated their d k i m c i e s to sw if h y would meet tbe Ininhum ef6cimey standmLAl1 of &a units sdected satisfiad the pmp~sad afficimcy siandard. See TSD entihd "Crrgonemtion Unit Eflicimey Calculations" in the- docket. As a result, EPA hlisves that most solid fuel-flmd copn~ration units will meet the proposed effidency standard. The ofiefoncy slandard EPA is adopting is the Public Utility Regulatory Act ( P W A ) of thermal efficiency of 42.5 porcent. See TSD mtitled, "Cogoneration unit Ef6dmcy Calculations" for furlher dhussion, is bused an L-W. I l h afficiency of a solid-fuol-fired unit is axpresslad in terns af W , it an easily be converted to for purposas of determining whather it maats the sffidoncy standard. Thetafare, ths reasonghen by the commontar [tbat solid fuel-firad unit eficioney is exprassed in terms of HHV) is not grounds for nut applying an efidency standard to &hem units. One cormenter supported applying the same effideney standard to solid fuel- h e d units as EPA proposed. Ths BPA Is fmdfzing Its proposed coganerntion unit dehiff on, which applies the m a operating and eficimcy standards to all

burned. b. OnathhdPotentid Eleetric Output Capacity

eleetr3c aulput capacity critnria in L a WRand SNPR Undsr the proposals, the following wgeneralion units me EGUs: Any cogeneration unit serving a generator with a nameplate capacity OF grentnr than 25 MW and supplying mora than '/a potential electric output

mquim these sources to meet fL B

units regardlass of tho fYPn of fossil h a 1

Tho P A is finalizing the %'a potential

capad and more than z19,aoo MW-Ius

dstrlbulIon systom for d a These milaria am similar to thosa used In the Add Rotn Program to detormina ivhethera cogeneration unit is a utility unit and the NOx SIP Call to d e t d n a whelhera cogenomtion unit is en EGU or 8 non-EGU. Tha primary diEerenco between the proposed miteria and tbs %I potantial eIactric cdtan'n for the Add Rain and NOx SIP Call Programs Is that these programs applied tha mitarisia to ihe initial oporaation of the unit and &en to3yearmlIing avarege PQrIUds whlo &n proposed CAIR criteria am applied to each individual year stfdng with the commencement of operation. Tho EPA believos that wing an individual year approach would streamline tho apphation and administratian of &is memption, Nu advem comments ware Fomived on using an individual year approach as opposed to a 3-year rolling averaga. In addiuon, the criterin undar the Add Rain Program and the NOx SIP &I me applied somswhat differently ta units eornmanchg construction 011 or bafore November 15,1990 and Units commnnchng conslmdian after November 15,1990, Several commontors suggested mampting all coganmtion units under the PURPA instead d u s l g the proposed mit~ria End dta the high efficiency of cogenamtion as a reason for 8 complete axamption. The EPA bolisvas I t I s important tu include in the CNR pmgram all units, induding cogeneration units, that am substantially in the business of sdling electricity, The proposed 'h potantid eIecMc out ut criteria doscribsd above are intenled to

annual P y to any ulIlity power

do &at, Inclusion of all units subslantially in

the electricity salw business minimizes t h ~ potential for shliting utikntion, and Pmissions, h m ragdated to unrogulated units in tbat business aad tbamby hning up dlowmm, with tha result that t o l d ernisslons brn gonoration ofdeetricity forsalo mceed the CAlR missions caps. The fact that units in thn aIectrIcIty sales business aro genomlly Interconnected through their FICCBSS to the grid SI nIfimtly Lnmcasos the potential forutifizalicm s h ~ ~ ~ n

one wmmentarsugpested that &n 1h of potmtial electric autput mpacity crilarfa h applied on pnannud bask. ThoEPA agrees that the crIteria should be applisd annually. The propnsad and find modal cap und trade rules adopt that approach. E. CIarifying "Fnr Sale"

S a v e d w m m a n t m requsstd EPA confirm that, far purposes of applying the I h potential oleclrIc output criteria,

688 25278 Federal RegistcrlVol. 70, No. 91/Thursdayy, May 12, 20051RuIes and Regulations . simultaneous putehases and s d o ~ ol ~ l~etr ic i ty BM to ba measured on a 44n~tr ' basis, 85 is dona in Ihe Acid Rain Program. At lesst one commantsr su estsd that the net 8 pmach dsu be apzied to purch~se antsales b a t ma not shultannous. For urposes of applMg the poten& s l e d c output criteria in the W P m g n m and the model cap and mds das , EFA confirms that tha only electricity that countsns B d e fs doctrICIty produced by a unit that amally flaws t n a utility power dMbutlon system from the unit. Electridy that i s produced by tha unit and usod o n d o by the otsctridly- consuming component of the facility wlll not count, fndudlng cognnentod elcctrieiiy that is simdtanaouslp purchased b the utility a d snld back to such fad& under pureham and sde ageemants under the P W A Howaver, olechic purchasses and $alas that are not sImuItaneous will: not be netted; the XI potenutil daetric nutput mileria will be eppliad on B gross basis, extapt Tor sImu~iauaous plvEhasa and salas. Thk is consbtont wih thn appmaeh taken in tho Acid Rain Program. d. Multipla Cogannrathn Units

Snma cmmonteK suggasted a mga~ng rnuIl(p1a cogonmation units c at am cometsd ta a utility &skibudon system bough ;I single point wkaa applying the '/a pntentinl olectric output uipadty criteria. Theso commsntws suggwtsd that it Isnot feasible to deiermineivhlch unit f pmdudng t h ~ IdSetrieity axpoflod to the outsido grid. Tbe EPA pruposad to determine whothara unit is affected by the C A R an an individual-unit basis, This unit-based approach fs mnsktmt with both the Add Rah Program and tho NOx Si€' Call. The EPA cansidors &is approach to be foasible based on axperlence from t ima &sting programs, including formma wilh rnulttpla cogonemuon unifs. Tho EPA is u n a m ofany instances of cogeneration unlt oivners bdng unabl~i to datcrminB how to apply tho 'h potantral dodrIe nutput MI adty critada w h m them are muhplo eo ensration units at a s o m ,

cog~nsration units with onIy OM connection io autility power distribution sysiarn, the electricity supplied ta thn utility distrihlion system can ba appndionad mung the units in order to q p i y the % poten~hl electric oulput capacity criterla. A reasonable basis for such apportIonrnant must be developd based on tho particuIar cimmstancns. The- most accurst0 way of apporhdng the alxtrlcity suppued to the utlIiky power

fn P CPSB where there are multipla

distribution system seams ia ha apportionment based an the mmnt OF slectriclty produced by ~ a & unit during the mbvant period of tima

Enmptlon lor Independent P o w Pmdudian [PPI FacilitiB: Some omm men tars statad that ceflaia IPP tedlitles are exempt horn &a Acid Rain Program and that tlmy should also be axsmpt from the CAIR Program and modd-cap and bade rules. Undsr the Acid Raln Program, an TPP facility that has, a5 of Novembar 15,1990, a qudlfying power purehsso wmmitment (including a salas price) to sell at hast 15 pment of planned net output apndly and has installed net output capacity nat exeeediag 130 parcent of pIannod net output capacity is oxempt. Howovar, 1Itha puwerpurchasa commitment chaqss after November 15.1ggO in a way t h a t ~ I O W S th0 cost of compliance with the Acid Rain Program to be shiftad to the pudaser, thsn the PP facility losm h a exmaption, Fotommph, expiration or tsrmfnatian of the power purchase commitment or modification so that the price i s increased (e.& changed to a

axempUon. Tha purpose ofthe exempli on is to protect IPF facWus subject to antract prices that WETB sat b&m passogo aftha CAA Amsndmenls of 1 9 ~ 0 (hcIudng thn Acid M n Program in title IVl and that dld not allow passthrough of tbe costs of Acid Rain Program eompllanca, However, EPA maintains that this axsmptkn WS aimed at easing tha transition of such facilities in10 the Add Rain Pro- and that hero i s no basis fur maintaining this exompHon for wery subsequent cap and trada program, In addition, this 8xompHon was not used In the NOx SIP call. D. How& Emission Aihvunces Mucated to Sources?

P State-hy-stata hasis wlth tho basic requirmants of thn cap and trada appmach when implomaniing a multl- stat^ cap and trado program. This wIl1 ensure that: The integrity ofthe cap and mda approach I s p m s a m d sa that Lbe required emissions reductioas are achieved; the comp?imca and administrstive costs are mIaimfmd; and SOUTCB OWDBTZ; and oparato~ are equitably trsaled. Howwar, EFA belaves &et somi limited dIKerenws, such as allowanca ellocalion methndohgias for NOx allownnces, ar8 possibh without jmpardizing the anvironmsnIa1 and other gods ofthe Program-

market @CO) r85Ulk h 1055 Of &a

It k important to have consktency on

1, Allocation ofNOx and SO2 Allowances

Each Sfata parkipaking InEPA- admhlstared cap and trade programs must develop a method brallocating (Le., distributh@ nnpnunt of

tonnap ortho State's CAE EGU budget. For NOx alIawanc~, ea& StetB has tho flmibility to alIoeata its allowances hnwevar they choosfl, so Ion6 as cerlain th ing requiremants we mat.

For SOz, as noted in the January 2004 pmposel, States will havaao discretion In thefr allomtf on approach sincc tha W S O 2 mp and trade program uses t i t la IV SO: aBowanees, which have baon elrsady allocated in perpetuity lo individual units by tltle W of th8 CAA. 8. RoquIred Aspacts of a Stats NOX Allfieatrnn Approach

While i t is EpA's intont to provide States with as mu& €Iexibllfty as posslbh in davdaping allmation approaches, &ere am smn ~ S P E ~ S of StatfI d1ocatlons that must be mnslStBnt for all States. All Slate docation systems are raquiFed i o include spocjfic provisions thnt establish whm States

unit alloealinns. Those provisions establish a deadhe for each Sfetu to submit to IZA Its unit-by-unit albcations for processing into the alectronic dlowmce mPdtIng system. S h e !he AdmInistrPtor will then BxpnditiousIy reeord the submitted allowance atlneatians, s~urccs wil1 theraby be natrfied of, and haw access io, allmalions with a minimum had time [about s years] before tho altoivances can be usud to meat the NOx smission limit.

Today's sction finalizes t h e propsd to require States to submit unit-by-unit allocations of allawanees for agivan year uo loss than 3 years pdor to January 1 ofthw aIlarvance vintago yeat. whIch approach was supportBd by commenters.1zfl Requiring Stales t w submit a l10d0m and thsreb pmvido a minimum load time befora d e allowancm can ba W B ~ i o maet the NOx em'ssittn limit ensut~s that an floetad source-mgaardlesr of tho Stata in &e CAIRregion in which the unit is located-will have suflieisnt tima ta plan for compliance and Implemnnt tholr Eompllanco planning. AUocathg sllorvanees lass than 3 years In advanco of the compliance year may rnduce a CAIR unit's abiIi irnplemont mmp!anco and,

8hWFtnCe3 ZiU&OdZhg t b B flmfSSi0X

notify EPA and SOWCBS of tha U 1 - b ~ -

to pian fur and

Federal Re$ster/Vol.

consaquently, fn-a compllaneo cosls, For examplo. a shorter lead t h o wnuIdreduw tbe period for buying or solling allnwanms and wuld prevent soureos from parttclpating in dlowanca futures mark&, a mechanism €or hodgln risk and lnwerin m6ts. Fu&. requiring 8 un!form

minimum Isad-time for subrn&sion of afhmflnns alIowsEPA to p d u m its ollomtion-mmrdation aclivitiw in a coordinated and efficient manner fn order to compIete expsditiously !he recordation for tho mtim M r e g i o n and Lhereby promote a fah and cornpatltlve alIowance market across tltn r inn. % m a minimum roqliirameats apply

10 the NOX allocation appronch and am not relavant for Iha SO, cap and tmda program, whkh r e l k on ff tla IV d O W W l C a s

b. Fl~ibf l i ly and Options for a Slak NOx Allowance AllocatInns Approach

Allowance allocatlon declsbns in B cap-and-bade program taisa manthIIy distributinnal ~SSUBS, as smrromie forces am sxpectad to r a d t in omnnmically oiliciaot and environmentally similar outcornus rogardless ortho moanor in

di ih iuted. Consequently, for CAIR NUX allowancos. Stat= are given latItudD in develo hip thdr allocation approach. NOX dkmtion methodology dements for which States will have floxlbllty hcluda:

A, The mst of the allowance d i b u t i o a [e.g., free &hibution or aucttoul; 3, The freguoncy of alloeetions (e.&,

permanant nr periodicalty updntedl; C The bad5 for distributing the

dlowanees (eg., habinput or p o w r output and. D, de use ofallawance sot-addns

and their size, if wad 1e.g. new unit sat- asides ms~t-asidas for on= etficiency, for dwelopment of integialed GasIlicatian Combined Cyda (IGCB ganemtian, for reaewables, or €or small units).

Some commontars haw a m E d against glving States ff exibllity in determining NOx alIncatiolls, dling concerns about complexi ora erating In m m n t markets and a $ 8 out a rohustnnss of the trading sydem. Tbe J3A rnaintdns that ufiudng such RexibiUty. 8s it did In the NOX SIP Call, dons not cnmpramise the effectiveness of the kadlng row.

A nunibor ofcornmentars have argued against allowing (orrequidng] tha USB of aHowance auctions, whIh others did not hdtove that EPA should recommend auctions. For today's final aclion, whi t there BTO some clan potentialbenefits to

Whfeh dOWmC65 ctre f i u d y

690 25280 Federal RegisterlVol. 70, No. glIThursday, May 12, 2005/Rules and Regulations r

and roewing of data needed for regufnr updating. The EPA bdiaves that domthg to

existing units based on a baselinn of historic heat h ut data [rathor than output data) Is hsfrable. because accurate protocols m n t l y exist for monitoring this dah and reportin it l o

am available €or most of !he aKetted S O ~ ( I S . The EPA expects that any problms with sttaadardizing and coheling ou!put data, to the Went that thoy exist, canbe resolved in Ume for Choir USB for now unit caleuIations. GIvon that units koep track of eloctrIcfty output for commareid purpos~~, this is not tikeIy to bo a sI@ficant problem.

support for EPA's proposal ixs&? that the heat input data b r exisking units be adjusted by multiplying i t by different factors based an fueI-typ8. Contrary tu Mma cammsnters' dalms, delsrmhiag docations 4th FueI factors would not mate disincmtivas br efficieney. With tho USB afa single baseline for existing units, neither adjustad Input, nor input, nor output basad allocations would pmvide addItlnnl incenthas for energy eMcbncy. All s o m s h v o Incenllvos to mduw e m h d ~ s (improving omdonq 1s away oldohg this) ns B result ofthe cap and trade p m p m , not because of tho chulce of an allocation based on a sin In historic basdine.

b he EPA n&mw~et~gesthat sineo allowance3 have value, diffmnt albeatioas ofallowmcos d e d y do impact the distrlbution oCwedth among dilhrant gannrators, However, in gennral, the aconamiw of powm generatlon dictate that generators selling power will seek to operate land burn fuel) ta meet energy demand in a least- cast manner. The cost ofthe power gmaratad [reflecting ths bid price pw megawatt hour1 will include the cost of allorvances ta c a w mislom, whether tha gonerator USBS OlIOwances thet it already owns, or whether it needs to pluehaso additional dIowancas. With a l i uid rnarkBt for albwaaces,

baselina does not b g ~ ) Bte a sunk banafit or sunk cost. not impacting tho exrsting gnnmtor's behavior on tho m q h Thus, the use of fud factars in ouralIocalfng mothod would not be

genmtors' choices for fuel effieieaey. In its axam Io allneation approach.

EPA Is Incluchg adjustments of heat input by fud typu based on avemge historic NO% emjsdons rates by tbres fuel wpm Icoal, natural ms, and oil1 For

EPA, and snvoral years of certifie d dala

A number of cornmantars

a1 'f amtims forakthgsnurcw iwhma

expeetd to msdt in Ebanges In

adjustment factors d1.0 for coal, 0.4 For gas and D.6 for ail. The factars would ronect t h ~ Inherently diffemnt emissions ratas af diKmnt fossil4md units (and consequently a h reff ect lho different burdens to control emissions.

However, ellocating to n w {not existing) sourc6s an the bask of input (and partialmy fuebed'usted heat input] would sme fo sutsidlze Ioss- effidoat new genmtioa. For B ghen amount of generation, mom eficiant units will have tha lower fuel Input or hsat input. Alloeeting to nsw units basad on heat input codd ancourage the buildhg oElsss &elant units sincn thoy wouldget mora allowances tknn an Equivalent efkient, larvor heat-input udt. The m d a d output approach, as dasmibed below, will encourage new, cloan genwatton, and will not r e m d less sfficient new wal unib or lass efficimt new gas units. Under the example method,

~ I O W ~ ~ C E S will be allacatud i o new units of each fuel-lypB with an appropriate baselinn on B "mo&iid ou1put" basis. The m w unit'smo&fied output wit1 be calculated by multiplying its gmss out utby B heat rata conversion &tor of7800 btukWh for coal units and 6,675 btdkWh for 011 and gas units. ?JIB 7,900 bmWh vaIua €or the conversion factor Tor new wal units is an avarage oF hmt-ratas €or n w pulverimd mal plants and new IGCC coal plants based upon m u m t ions In EW's Annual Energy Outlook &EO] 20MlzQ].Tha 6,1378 b W W h value for the conversion factor for mw gas udts is an average oTheatmtes for new mmbhnad cycla gas units (&a based upon assumptions In HA'S AEO zoos]. AsIngle conversion rate for each fuel- typa will create consistent and level incentives for sfficienl ~ B T I B ~ & ~ O I I ~ rafher than favoring new mils with hi Br heat-mtss.

%r new cogennmlinn units, &elr sham ofthe all~wancas willho calcutatsd by wnverling tho availsble thormal output (btu) of usanb?e steam from a holler or useablo h a t fiom a heat ex&mpr to an squivabnt haat input hy dividing the total thermal ou ut [btu) by a general boIIer/hent au%aager a t f i t h e y af80

New trrmbuEZ%ine eogotinmtiw units wilI dculate tbeir skara of aHawances by first convarthg the available &mal output of useable steam from a heat recovery steam generator WSG] ot useable hsat from a heat oxchanger to an equivalent heat

input by dividing L e total thermd output (bhr) by the genom1 boilorfieat exchanger afficlency of 80 parcent. To this they will add the ~ l e d c a l genaration Earn tha wmbustion turbine, converted to an cquidont heat input by muItipIying by tho c o n v m h factor of 3,413 h c k w h . This sum will yield the mal equivalent heat input for the coganemttnn unit.

Sham and beat output, Itke dectri'co1 output, is a useable form of anergy that ean be utilized to powor other processas, Bemusa It would ba nearly impnssibh to adequately dafine the efficiency in converting asam energy Into the final product for all of the various pmcesses, this approach foeuses on !he eEidency ofa mg0nemtlon unit in capturing s n q y in the fonn of stoarn or heat horn tho 1301 inpltt.

Comrnmiers expmssed w n m abnut a sIngIs conversion fartar, arguing for differant factors for dIEsrsnt fuels and fechnohg1es.Tha EPA raeqnizes t h e s ~ concerns and ~grees that different m w fossil-genmtion units have inherently difirent heat rates, I q d y dictated by the technolo y needed to burn diffarent fuels, A slngfo convarsion rata for all units wnuld pmvide new gas-fired combinad @e units wlrh rehtivdy mora allowances. rolntiw to their emissions, tkan it would for nQW coal- fired unUs. Tbe EFA maintains that prnuIdhg

each now sourti an aqud amount OF elIowances per MWh of output, given tha fuel it is hurning, is en squitabla a pmch. SInm dactricity output is the

EGU5, a single conversion factor fur ~ a & fud, based on output, ensums that all naw souxes burning a p~*mlzrfueI will b8 treated equally. Soma cnmmenleasupport allocating

allowmces to all n0w emeration, not just fossil fuebfir8d CAIR units. mo EPA noles &at SoeZuding naw nunXAIR and nun*fussil units in tho allowance distribution rvould mise tssuas, &out which P A lacks sulfidont Informath for resolution at &is timo for BFA's exampla method. It would be newssary to dearly define what types o l gensmthg faeltties that muId participate and what would cnnstituta "IIBW" non-fossil gemmtioL1m ~ m m a n t a r s did not pmvida BII

dofinItionns ongonoration mix, or e?e&city markets. Further, in order to Include all generation, thcm would hu a need to ostabfish sppIicatioa mrd data

II P timate product boing produced by

sndysis of the Impact nfpossib r B

69i Federal RegisterlVoI. 70, No. WThursday, May 12, 20051Rdas and Regulations 25281

collections procedures and determias appropriate s b cut-offs and boundaries of thIs gensration-hce in many such insbcas tharo is no C ~ R S analog to dhcrste fossil "units." *3* There also am aSsndatod isssuos about devdoping nppmpriato rneaswommt and data reporting requirements for such soums. Commenlers supporting this approach did not address any of these matters in any detail. Howmar. EPA enmurap Slates that am Interastod In including such units in thair updating allocatians to consider patantid solutions and include &am In their SIPS, Under the axample mothad, new units that have antered semim, but h v e not yet stortad remfvhg allowances through the updmto, will rocoive alIawmcos ea& yew fiom a now s u w o set-asida. The new source allaiuancas from the sst- asido rvIU be distributed based on their actual smtssions from the prsvious ymr.

generally provide naw units sufficient allowamas to a v e r their emissions during the interim p o r i d hefme the units ali~wted allowances on the S B ~ B hasis as oxisting units.

Tadayls ~ x p m p l ~ method indud= R new s m c e set-aside e a1 to 5 pnrceat oftho Stet& emissim%dgat fortbe yeas 2ODIl-2013 and 3 percent af the Stain's omhionbudgot €or tbs subsequent ars, In the SNPR EPA proposad a t" w e 1 2 porcent set-aside for all ears.

dbmmenters noted thotr conmm that the mount of the sot-aside in the early years of tho program should be Hghsr to r l o d the fact that the set-aside will initlalIy ncedio acwmrnodats a11 naw units entering intn s e d = froom 1998 though 2010.1~2In order io estimate the nead for allamtions for new units, EPA Iookd at the NOx smisskns from unib that went adinesfartiag in 1999 as ptojnctd by the Intqyated Planning Model (IPM) runs modding CAIR Tor the yem 2010 and ZUl5. Thaso IPM emissions projections indicatnd over 57,000 tons of NOx missions in 2010 and s h u t 74,ODD tons of NOx mission by 2015 irom now SDU~EBS need to be wvamd under set-aside5 thraughaut the CAIR region. Tha 2010 number repres~nts almost 4 percent oftha Phase I NOx rogionnl cap. while the 2015 number reprosants ahout 6 pBrcnnt of the P h m I regional cap. Consequently, tod~y's axample mothod indudes a 5 p m n t set-aside for tha Mthl period IZOOQ-2Or3). It shPuldbD noted that by

such an 1Iocatlon approach wlll

1034. the sebasidn would need to cover new soums from tho e n t h pariod 2004-2013,

Tha choice ofa 3 perwnt naw source s&asfde, starting in 2014, reflects concerns &at adequate alhwancas bo pmvidod for &R 10 yeas af new units to ba covered by tho sot-asIda in 2014 nnd subsflquant em. set-aside in 2014, for axamp&, would noad to accommodate dl units that want on-line betweon 2004 and 2013).

badIvJdual Slates using a version of fhe example method may want !a adju5t this Initial 5 yearsst-asfd~ amount to a nmbw hlgher ar lower than 5 percent to the oxtont t b ~ t they expeet to have mom or less norvgonerathn going on- line during Lhe 2001-2013 poridl'bey may a h want to adjust tha subsequent set-esida amount to n num6sr highar or lower h m 3 p ~ m n t to the extent that b y expect mom or less nBw generation going on-Une after 2OW. Statas ma also

ected mud, since, In the %%ax, amwnt of the set-nsids axmrtds !ha need for new unit a11omw5, theStatemaywant to provido that BU unused mt-aside allowmnces wilfhe radistributod to existing units in propodon to thalr

finalizing tka approaeh that m w units will begin reeelving allowances bum the sot-asida for the Eontml period immediately following the ccratrol paricrd in which the new udt commences cPmmerdd opsration, basad on the unit's emissions for the pracoding contml periad. Thus, a source wlll bo mphoad to hold allawances

recefvs an aNomtion for that year. States will doeats allowances h o r n

thn set-aside to all naw units in any ghen year as a group. Ethere BTB mom alltiwaaeos raquested than In the set- ~6id0, allowaacas will be b'stdbated on a prwratabnsis. Allorvanm a l ~ o c s ~ o n ~ for a given new unit fn following y m s will cmtiaue io be based on tbe prior yaar's emisdons until the new unit establishm B baselha, Is treatad as an existing unit. and is dlooted B I I O W ~ ~ C W through !he Stale's updating

mcess. This will onabla new units 10 L v n a good smaa of the mount of dowaaces they will likely rewive-in proportion to their 0mIssions for tha praulous year. This m0tlroddogy will not provida allowances tu a unit in its first year of apsraiion: huwever it Is a methodology &at is straightforward, Isasonable to Implement, and pradlctable,

la the SWR, the axamplo method from the NOX SIP Call modo1 rule was

want to sot hi6 paantage a liltla il lgher

dloealioss. """% For B examplo mslhhod, EFA i s

d m g its Start-up y8ar but Will not

proposod as an altomate approech.1" Hawavor, tho EPA Eras found this approach to be enmplieetad forholh ihe Smttls md the ITPA to implement. Additronally, &e NOX S1p Call approach would introduce a b5gher level o€ uncertainty for sources in &a dhcetion pmcsss &an noeossary. aIlocatloa mslhnd with ammpanyiug regulatory Ianguaga. tho EPA mitaratas that it is givhg Stales' II axibility in chunsing &oh NOX allocations mothad so they may tailor it to their unique circumstances and interests, Sowed commmfers, for instance. ham noted their desire for full output-&xed ahcations (in contmst to the h brId appmaeh In t h o oxample a h o d In tho past, EPA hadsponsored a work grmp to assist Statas wishhg fo adopt out ut- based NO% al?omdous for the N& &P Call and bliaves it is B viabh a pmach

meetings ofthis mup and &0 resulting ytdanco report &ntnd at htt $/

workgrp.html] together with additional resourns such as h a EPA-qonsored report "Output-~ased Re~ulntions: A Handbnok for Alr Regulators" (found nt h ttp $/wuw, epa.gw/cleanene&p di/ outputrpLpdfl can help Status, should they chaoso to adapt any aukpubbased dements in their allomion plans,

As an another alternativa aampls Skates could decide to includrr d9m6nk of auctions inta their dinwanes a l l o a t h rograms.134 An ~xamplo of an approa% whore CAlR NOX aHowances a u l d be dktributd tu sources through a comblnaffon ofan auetion and a bo dlncation i s pmvidod belnw.

During the first year afthe trading progmm, g4 pnreent of the NOx dowancas could, for example, be aUacated to afleded units with an auction held forthe remaining 1 percent of tba NOx allowances '3% Each subsequent par, an ndditiortnl 1 percent of the allowances [for the fiat 20 y a m of the program), and then an additiuanl 23 percent themafter, could ha auctioned until, avantualIy all the allorvancas am auctlonod. WIth such n system, forthe first ~ ~ y e a r s o € t h o

W.%ta mdddktdbutna u ~ s n ~ s 8 t - a s I ~ bra mml p d d based un C11 ntihtloa r n b , ut lkn nnd or the thu a c t l d d h m m aUocaUan w a d a d j u s t e d to sEopmllf0raEtval c d t utlflalidaupnt, a d UUIE~SI duwaacm woutdbp relamed and rPdLtrlbutsd. Gtct ! d o amma, naw rmhmquw &at w m mi abb I D b o a d h w d

* r r A u ~ u l r m s ~ p m v l d o S t o ~ s w i l h a a ~ n - dIsrorlfonaryswrenolww

s a w suts.jlda

while tho EPA Is offering an 0xampl~

worth c d d e d n g . D o w o n t s P rom

tvww.epo.goddrmwh!s/.ie it nod

LUiVilh Iho d r ~ ~ t n ~ p p m f h Imm h N O x SIP

m 5 permnl artbn domm d d ~ o IO a nnw

25282 Fedaral Register/Vol,

trading pmgmms. the majority cf dlotvaneos would be diskibuied lor hetr via lha allomtioh Allowanws dlDcated for these edier ears a r ~ geneally mora valuable than a&mcas alhmtad for lator years because nf tha time valua of monq. Thus, most emIttIag units would reeeiva relatively more allowanm in the early years af Ihn program, when they are facing the expenses OF takig actions to cnnbol their omhsions. Even though t h o proportJon CIF~IDW~IIC~B dfocatod to misting sourc~s decliim in the later years of t h ~ program, these s m m racoive fur ho 8 vary sImifient share ofthe totel value of alIowenees Ibemusa ~€IB discounted present value 01 allowanws alhmtod in the early yoas olthrr program is peatar than the diseountedprasent value oF the nlloivancns auctrnned Intar).

Auctions could be designed by tha Stat0 to promota an aEelent distribution of alInwances and a corn eUtive marke~ Allowantas tvouId b~ o h s d €or sa10 bafora or during the year for whlch such dIowances mayba used to m o t tha mquhement to hold allowanneas. Stntss would daddo on the fiequenncy and timing ofauclions. Each auction would be uppen to any erson, who vrodd submit blds oeeor&p to auction pmcodurea, a blddia schedule, a bidding means, and by fulf ih~g requfrments for financial g u m t e a s as specified by the State. Winning bids, and rn u h d payments, fur dhrvances wouId%o determined in accordencs with the Slato p r o w and ownarshi of allorvancss wodd be recorded in tE B EFA Alloumce T d a p Systam after the requiredpayment is received. T h a auction mdd he 8 multiple-

round auction. laterasted bidders would submit befom the nudon, one or mora initid blds to purchase a spacifisd quantity ofNOx dlomces at a rmm price spocifiod by the Stats, spodfyhg tho approprhte account in the AllovranwTr;l,eking System €n which suchallorvanca5 would be recurdad. Each hid would be parantoed by a wrtrfied check, a funds tmnsfer, or. in a form acceptable to the State, a hitor of credit for such quantiiy multI lied by tho mem price. ~ o i - a a h rounfo~the auction, the Stab would announce m n t round r m m prices for NOx nnd detrtnine whe&arthe sum ofthe aecoptabIe bids exceed5 the quantity of such allotvances, availeble for auction. EQs sum offha acceptable bids for NOx allownces exwodr the quantity oi such allowances tha Statn would increase tho roserua pdee far the nut round. ARer tbe Q ~ O R , the State would publish the namss of winning md lasing Mddors, thefr qunntitias

awarded, and tha final prices. T h e State would W1Um payment to unsuccessfu? bldders and add any unsold allowances to t b ~ n ~ ~ t ~ l ~ v a n t auction. In summary, today's action provides.

fop States participating in the EPA- admStlistered CAlR NUX cap and trado prugmm, Lba flexibility to detamfns t h e i r awn methods for domtlng NOx dlnwmcas to thelr sources. Spedfically, much States will have flaxibilIty mncoming &a cost of the a b m n c e dbtrlbutlon. the frequency of dlacatrans.thB basis ibr distributing tha dhwancas, and the use and size a€ dhwance sat-asides. E. What Meehunisms Afled Ihe Tmding af Emision Ailawances? 1. B d h g IL The CAER NPR and SNPR Propma1 €or th~t Modd Rdes and input From Cmmentars

Banking Is tha retention ofunusad al~owances from z calendar ye= for l l s ~ in a later d a n d a r yew. B m n g a h w s sourcos to make reductlnns beyond required h v d s mad 'W' the mused downnces for ufa later. GmeraIIy speaking, banklng has several advaniapes: It can sncourage e a r h OF greater reductions than am roquirad h r n sourccs, sllmulate tha market and eneotuage &ciency, and providu fl extbility in achiwing omissions roductlons goals. Whsn SOWBS reduce their SO2 and NOx smklons in the oady phases, the cap and mda program creates an emissions "glida path" that pmvidas aarliar snvironmmtal bmefits and lnwer cost oFmrnpliance.This "glide path'' do= alhw emissions fo axceed the cap and bade pmgram hudget-espedally in tho idtId years after the adoption of a mom stringent cap. The l l s ~ ofbank8d allowances h m the Acid Rain and NOX SP Call Pmgmms in fhe CAIR NOx and SO2 cnp and bada programs is discussad below In section VIIJ.F of thIs preamble.

Tho January 30,20Q¶ CAR NPR and Sum IO. 2004 CAIR SNPR prnposad that the CRIR NOx and SO2 cap and trade pmgrams dlnwbanking and tbe USn of bankedallowaneos without restrictions. AUowhg unrestricled banking and the use of bmnked aIlowancgs Is wnsktent with ihe existing Acid Rain SO1 cep and trade pmgram. Tlse NOx Srp call cap and tradrt pmgram, howover, has soma raStnclIofi5 on tb8 USB ofbaaked a l l o v ~ a n ~ ~ ~ , a pmeadure called 'YIow c a n ~ l . ' ' desmibad in datal1 in thBJuao 10,2W4 CAE! SNPR

Commonts Regarding Unrestricted BanWng Mer the Start of the CAIR NOx and SCh Cap and Trade Programs Many commanters supported the

EPA's proposal to allow unrestricted banking and the use of banked alhwances for both SO: and NOx, agraehg that flow contrul f a EornpIox and confusing procedure with undernonslraled onviranmontal henofit. Fanlher, they agreed &at banking with no r~~trictions on use will eawurap early emissions roductSons, stirnulato the trading market, oncourage eficient pollution control, and provido flexIblUty to offected souras in meting environmental objectives.

GpA's proposal to allow unrestricted use ofhanked aIlcwances. All of these commontms suppodcd some use of flow control In the (=AER cap nnd trade

Other comrnenters objected to the

rngra~~~s, m a t supporting its use for

Soma commonten disageed with tho EPA's assessment that the use of flow control in ths Ozone Tmnsport Commission (OTCJ cap and trade program was compIicated to understand and impiomsnt and caused market complaxity. Ono commenter further elaborated &at flow wntrol \vas accepted by industry. Another commanter daimed that the EPA has not analyzod the Impact of the now coabl mechmdsm.

control stated &at flow conml was

Call -ding programs and "worked well" and "achioved the desired d o d " without supporting rhose statamants. b. The Final CAIR Model Rules and BankIng

The EPA achowlodges that the OTC NO% cap and trade program bas bctroned for several years despite tho complexxlty introduced by the llow control pmcaduras. Industry and athor ellotmce traders have adeptod to these complex procedures, yet tkara me ongoing questions &am tho regulated community about how the procedures actueily work As an example, one commentet, while dissgreeing with tho BPA's asserilon that flow control k overly complex, goas on to dusu-lbe incorrectiy tho implementation of flow conbl. The NOX SIP CalI cap end trado program includes similar proaduros but flow conlrol was not b-iggerod in the first 2 yaars of the p m p m (2003 and 20041, so there is no sxpsrience io bo drawn fiom thnt program.

The P A maintains thet the benefits of titillzing these complex procadures Is questionable. The EPA has nnaiyzod tho

o h SO2 and NOx. E

Sumo commenters supportive of flow

"SUCC~SSF~~" Ln the OTC a d NUX SIP

G9,3 FedcraI RegTster/Vol. 70, NO. gllThursday, May 12, 2005/Rules and ReguIations 25283

use of tha flow contml procedures in a papor released in Mardi 2004, "Pmgresslve FIow Control: fn tho OTC NOx Budget fragmm: ISSUPS to Consider at tho Chsa o f t b ~ 1994 ta 2002 Periob" Tho lessons laamad from this analysis WBTB Bs folIows:

(11 !?law control can m a l e market pricing comphxity and unwdaiaty, The nand for implomantation offlaw cnntml for a parlimlarwntml pmInd is not knnivn mora &an a few months in advanm, and the value of banked allmaneas v a r i ~ &om YE= to year, depending on whelhor ff ow eontml has beaniriggared forthe partimlar year. Tbmeforo, when deciding how much fo cmkd, a source has some hCr8aSBd uncorfainty about tha d u e of any P X C ~ allownnms it generatm

(2) Flow ccntro1 mn have B bi er Impact on sm11 antttla than on T arge ontitios. Large firms with muluple allowanw accaunls can S U A badad alloirtanm among fhosa amounts to rninfmim &a numbarofbaabd dIoivanm surrondercd nt a discounied rate. (3) Flow control does nDt directly

aflect short-term ~mSssiotis, so it may not serve the mvimnmantd goals for which it was creatad.

Incorpodng &mu lessons learnnd. the EPA is fmalizing &a CAIR NOx and SO2 cap and trade pragrams with no flow contra1 mechanism. 2. Interpollutant Tmding M#chnnisms P,. The CAIR NPK Prupml far 8 e Modal K U L S and hput From Comrnenhs

Mochnnisrns €nr interpollutant ttading allow reduced smksions af ona pollulant Io be exchanged for increased omissions of another pdlutant wharo both pollutantr; cause the same ouvironmea!al problem (e.6.. are p m ~ ~ u r s ora third pollutant). Interpolluhant tmding moehanIsms am typjeally basad upon each precursor's cDnkibutroa 10 a particular environmcntnl pwblom aadara oRen conbvarsial and sciantilicalfy diftieuft ta design bacawe ofthe cornpl6xitfes uf environmental chamistry. Determinathn of eonvetsioa factors [La., transferratios that relato tho impact dnne pollutant to th Impact of anothar pollutant] wn ba dependant upon lmtlon, th0 pressna of other pdlutaats &at BM nerassury for chemical readions. fba time of omissions, md other considerations.

not propose a specSnc Interpolluunt trading mcchanfsm but rather took comment on inierpolHlant tmdIng h ganerd as well as the followhg spedfic

The J a n u q 3~.2OD4CARNPRdid

111 What would bo the exchange rata [Le., the m f e r ratio] €or the two pdlutmts,

(21 How mn tha traasfer ratio best achieve &a goals oiP& and nzone reductions in downwind States and,

[a) HOW would tho Inte dlulant tndIng accommodate the%fmnt geographicragtons ofthe PMZJ and 020118 program? Cammants Regarding the Potantial Interpollutant Tracing The EFA raceivad several comments

on interpollutant trading with tho mast Eilmmonters genorally o p p ~ ~ ~ d to Including prmrIsions ro d n w for tha intarehangability of SOZ and NOx allorvances.

the CiUR ozone attehrnsnt haasfits result from the NDx amissfom reductions, and contand that the EPA bas not shown b a r SO2 emissions impaEt ozone. TIIeroforal the mmmmenters conclude that it would ba h a prapriate for SO2 allowances to be h & d and used for eompUaneewith tho NOx cap. S o w wrnrnentw suppnrled the consideration or use- of inlerpollutant tndiag if it was o m - directtondl ie.. NOX a ~ ~ o w a n ~ s s could bo wad for cnmpliance with the SOX allowance bdding requirements, but not vice vusa. This could resulr in fawar NOx omissions and muro SO1 emissions.

Some commentm supported the consideration or usa of interpolhtant h d h g and smpbasbd the sdsntiflc difficulty in daveloping a m r a t 8 transfer ratins, Of these commontars, some addad that inlsrpoIutant trading would La appmpriate if tha EPA randucted B thorough anaIysIs of !he patantid irn acts &at iniwpollutant traang wo& haw om nonattainment meas' ability to come into atttainment; tho allowance markets and prieos: and the integrity of the NOX a 5 in light of t h o polentially large SOz a1 P awance bank that rniEbt bs carrI8d fomd into

A Taw mmmentsrs noted &at the EFA is dhetedhy thn (=AA to study interpollutant trading and h a approved SIPS !hat allow the trading of omno precursors under specific circumstancas, h. IntaqolIutant Trading and the Find CAlR Model Rufm

IntarpoIutant trading an p e d e soma additional compliance f l d W y , and pntentiall lower compliance costs, ffa proprlst$ applied lo multiple

olt)ntants that have r8asonabIy well Lnwn impacts an the same

Swveral mmmenters pointsd out that

th8 a hdIng PKOgramS.

aclnnwledgos thak it has the authority to m a t e interpallutmt tredlag programs end has done so, in othotregdatory contexts, In the past. Hawaver. for s a v e d rea~ons, tha EFA determined that direct inie oltutant trading is not ap roprjato in 5, CAIR.

{ha anal CAlR Includes sapparata annual SO, und annual NOX model d e s tu addross PM= precursor emissions, and an ozana-s~ason NOx model ruIe to addrms summmtimo ozone precusor emissions. Tho EPA boIinves it is not apprupdato for tha C A R model rules fo allow smual S G or NOx allowances to he used fDr compliance with ozone-season NOX allowance holding requbmenls bemuso this has the pntenCiaI to edvarsely impact t h o ozone-season ernisdons reduethas md ozone air quality lmpmvomorrts from CAIR This is signilicmt b e c a m the EPA, as required by t h ~ CAA, ha5 promulgated a nationd air qudb slandnrd for 8- bourozana bas0d on B determlnation that the standard is mmssary to protect pubkbealth. Sectton IlOfalZ(D] requires Stetes to probibit emissions in emaunts that will significantly contributa to nonattainment in, or interfere with maintmnanca by, any other State with respeEt ta any air

uality standard, inchdin omno. In %55 m10, EPA has designej the aanud {SO: and NOxl and omn~-s~asan WOx) omission fnps to nchievo &e omissions reduetiara necessary 10 addrass each Stnte's significant contribution to downwhd P M u and mune nonattalnment, rqectivdy, and to prw'nnt Interference with maintenance. If SDUICBS were parmitmd to USB annual SO: or annual NOx allowaacas for compUance with omnedeason NOx allowance holding requirements (;A, tha ozonwmsnn NOX cap], then fkere would be no amrance that u wind

obligations wnuld ba met. and CAIR's rniectsd nzom improvements in

$orvnlvind nonatlninmmt areas cnuId be significantly raduced. As a rasutt. s h d d interpollutant tmdhg be permittedbotwesn the annual and oznnweason programs. the EPA could not dsmaaskto that L ~ B us0 of a CAIR oranemasan ca and tnda program would result in %o odssiom reductions necessary to satisfy upwind States' Ob1igaatlOaS under seetian 1iO[s]Z(D]to mduca NOx for ozone

pTes' B EPA belhvuas it is B ~ S O happropriato to uso annual NOX allowances for compIiaacs with tbe annual SO2 allowanca holding requirements, and vim versa, The EPA

Sbtes' ozonweasan NOX ra 2 uction

issues onviranmhtal problm. The EPA a g i w with commentm thot ornphasize

25284 FederaI RegisterlVol. 70, No. SIiThursday. May 12. 20051Rdes and Regulations 694 &at tho chemical interactions far PM- precursors rm scientiiically wmpInx and must be accurately roncetd in any transfer ratio In order to maintafn the integrity afihe market For example, EPA analysis has shown [see- Januaty 30. 2004 NPR) that PMu T8CUISOTs, such a5 ?COX and SO:. may K ava non-linear interactions in the formation of PMts. Any uniform. interpnliutm! transrer ratin wouldhava IO bs an avorap and would Introdurn significant variability cuncemhg the impad ofinterpollutaat trading an emissions and sfpifimnt unmsrtaiaty Enncming &a aehiavemeni of &e CAlRPropnfs omhion reduction go&. Tho EFA did not racdve a response to the requast in the Ianuary 30,2001 WR for information on an appropriate value for a potential transfar ratio. While the EPA did receiva one comment that tecommended the USB ofa trading ntin o f m NO, dhwancas for om SO: allornee, na Epmments prasenled su porting analysis that couldbe to develop transfer ralios.

While many commantm supportive ofallowing inlorpollutant trading fn the CAIR clhrtd that It would p r ~ ~ i t t ~ additional mmplimce flpxibility to ~(LUTCES, the P A contends that use of tha IlQW&’ mated mdhg markels issufichnt?y flmible. Sources may develo integratd. multi-pollutant EonmPstratogies and use the separate allowance markets to rntQata diffarancas in control casts [within the boundaries of 8 d s s h s caps), In other words, a s o m a mn choosa the lava1 to which thay can cost aflactSveIy contml one polhmt and, if necessary, buy or SSU omhlon allowances of tho other pdhlant to compensate fur any exponsive or inexpemive control cost. When markets 8p6 used l a provida for trading of rnultiplo ollutants, somes benefit fiom tho ad&ional mmpIIance flaxibilIty wbllo the caps B~SUTB t h ~ achievement of the averarchinn - snvimnmonlal goals. In the lune 10,2004 SNPR. tho EPA

sdicited-comment on haw an fntorpdntant trading m o h h might accnmmodats the slrghtly &€€emit goograpkic r@ns found to be signrficant contributors for P M 3 and ozone under the GUR No commenten providedmpporting molysis or input on &is issue, In summary, the EPA receIued

comrnmts &at gonerally op osed inehdinga specificiabrpo P Iutant trpding maehantsm. NO wmmantsrs

rovldad analysis to damonstrate tha B snefit of including a specilic interpnllurant ttadlng mechanism nor was them andysis provided in responsB to the EPA’s solicitation in the lune 10. 2004 SNPR for input on: Tfansfnr ralios.

oddrcssing hvo diflorenl envitanmontal Issues. and having dightly different annual NOx and otono season NOx control regions. Furthermore, because the NOX and Sa markots provide very flexible rnochanisms for trading of &e two pollutants, the €PA does not believe there i s a compelling mod to go fruther at this time. Therefore, EPA is not Finalizing pravlsions IR the (3A1R model mlas tbat s p ~ d f i ~ ~ ~ l l y address interpokmnt bd85. F. Am There Incentives forKarJy Reductions?

When sources redum thekSO2 and NOx omissions prior to the i k t phaso ofn muIff h u e cap and &ads mgram, it usatas Z e edssions “glide 8 o p ~ of a cap and trade approach that provSdes early envimnmantal benefit and lowers the cost of campliance. Early radudfon uedits ERG) can mvide an incentive for sources to inst& a n d h oparate wntmls before tho Implernentaion dates. Allowing emission allowances from existing programs to be used for corn ?iance in the new pragram is

raducLIons prior to tho start ofa cap and trade program. This section dlscuases the pDtentia1 USB of mechanisms to provide incentives for earlyreductions i n t b O C A f R . 1. lncenttves for Early SO1 Raduclfons a. Tho CAlR NPR and SNPR Proposal For the Model Kulos and hput From Cornenters

Tho January 30,2aD4 CAIR MPR and June I O . 2004 CAIR SNPR acknowledge &a bonefit of early redudom and provide for the use of UlJe SV SO2 ellowances ofvintego yenrs 2009 and earlier lo be ussod for compliance in the CAJR at a one-to-one ratio, In other words, tide IV allowances can be banktld into the C A R Progmm. Thk provides iamt ive for title N sourcos to reduce tbelr emissions in years 2009 and earlier bocause these aIlowances may be used for CAIR complianm without being discounted by the retirement ratios applied to the 2010 and h e r SO2 allowances, No other mechanism, such as SO2 EIu=s were propasod by the EPA. Comments Regarding &e Sncentives for Early SO, Reductions Tho EPA received wmmonts on

incentbas for early SO;! reduclions with tho majority supporting ths EPA proposal to encourage early emfsslon reductions by allowing ihe CAZfi sources ta use 2009 and earlisr vintage Litle W SO? allowances for CAIR compliance. Same so porters noted wncorns in meeting iRe C A I r 5

nno tK er m e c h e n h ta ancourage early

sthaant Phase 1 Sot requirements as annther mason to allow ths b m h g of undiscounted. Utlc Tv allowaneas Into the C A E

that achiaving the SO, caps w d d be ddaynd €fa laqa number ofS02 allowances were beIng banked into tho C A R Basnd upan expwjanea wtth implamenting the Acid Rain Pmgram, the EFA ackaowledged in he SNPR that cradflinng early reductions doos m a t s 8 glide 510 ewher5 emissions are reduatd%eIow the basdine bofura the tmplmmtation date and “glide” down to the ultimate cap level somatimn aRor the program begins, ThIs Eradud redudon Jn emissioas i s G b y component ta cap and trade pmgmms having lower c a t of complianco than command-and-contrul approaches. Onu commentor proposed that the EPA needs to BSSW tha l&elLhood that sllawing the banking a€ undiscountod title TV allowances wauld ddlay the attainment of tha Phaso 1 SO2 ca until Phasn II. Bamusa tEts =A Inda&d this mechanism [f.e., t h ~ USB of2009 and earlier vinta B SO2 a11owances for mmpliance fn the CAE) in thtl p ~ c y assm model ad as art of this mlmaking, EP* analysis incPudos the benefits and costs that would result horn the level of SO2 reductions &at would t a b pIace with banking of undiswunted t i l e N Irowances.

One comment~trsdvomted tbo us8 of 502 ERCs. It was not dear whether thesewodd be awarded in addition to banking title TV allowances into t h ~ CAIR or the ERC mochanism would tdko tha place of banking SOt ellowane= into the CAE, b, SOz Early Reduction Incentivos in tho Final CAIR Model Rulss

Some eommsnters expressed wncwn

Tho CARS& modd d e allows c m S O U T I ~ S 10 USfl tIfl8 allowances nEvhtaga 2009 and earlior for compliance with tho CAliz at B one- to-ona ratio, TM5 approach was part of the CAR policy cas0 assumptions usod in the dem&ing modling and the ?SA has shown that the SOa cap and. trade program. with this aarly iacenhvva mochhanism, wiH ochinvo t h ~ Itlval of SOZraductions needed lo moat the CAIU goals. Theso reduelhas take place on a glide s l o p that inch&s anIy emkslons roductinns as w e l l as some USD Of tho SO2 ~ ~ O W ~ C B bank BS SDUKCOS 5adud raduce emissions toward Lho ca h e L .

{ha EPA did not indude S& ERCs beeausa the Add Rain Program cap and mde program. whIch afEBcts a large segment oftha CAE s w r c e univarso, makes it impossible to delamine whthar sDurces are reducing their SO2

so2

Fedural RegisferfVol. I

emissions below lovoL requird by existing Ke.. the Acid Raiu Program) programs. Fu:uahcrmoro. ghon that most

rocoivo SO1 omission dIowances undor the Acld Rain Program, a slgnifimnt number of SO, dlowances are expecled io he banked into the CAIR. Than banked allowances would h available to CAIR so11rcos in f i h o early y8ars ofthe p m g m and make !ERG I q d y mecessary. 2, Inwntivss for Early NOX RoduetInns 8. The C A N NPR and SNPK Pruposal €or the Model Rulw and hput From Commonters In the June 10.200aSNPR h a EPA

proposed to provida incentives foraarly NOx mductions by allowing the use OF NOx SIP CalI allowances of vintago 2009 and aarller to be ussd for compIIaaco in tho CAIR, Further, t h ~ EPA dld notpropuse, but sdicitad comment on the potential USB ofNOx €RCs 1a provide nn additionel incmntrvo Tor SDUTCOS to reduce NOX dss ions pdar ta CAR irnpbmantation. In additian to the generalsolieitatfan for comment on NOX EKs, the EPA solicitad input an the following spedtic a p a & # that wuld be utflized: (1) &a EPA could maintaln the NOx SIP Call requirements and allow SOUPCBS to 1160 ERCs only for compliance with the annual 1Imitation. to a n s m that ozone- SeaSm NOx IimitaLlons am mat. Under this scenario. &e additional Slales subject to t h ~ W R that hsvs been found tnsIgnIJimtly conMbute 10 ozone nonattainmant may also have to he includod In the oznm s~ason cap: 121 &a ?ZPAcould h i t the period of timo during which ERG muld bs creatad and banked; [3) the EPA cauld cap the mmt olERCs that can ba cmaIBd; md (4) the EPA cnuld apply a diswunlrate to E m . Cnmments Re arding tbn Incmtivos for

Tbe EPA did not receive comment on the proposed use omax S P Call allowanem ofvintage ywrs 2009 and earliar for compliance in the C A R In fact, s~veral cornmentars chametdzad the CAIRproposd as not including any ineantivnr; for early NOx emhsdons raductions, The EPA received several comments

on the potential HSB ofNOx ERCs wilh f h ~ majority in favor of some sort oIERC mechanfsm. Sovml cornrnmntt\rs advocated tha 11sp afERCs ta miU ate mnc~rns that thay w d d notke a i IB to meet the stringent Phese I CAE reduction rnquimmants. One commentor wanted early reductions to Iaeilitate the

50UreoS W i t h Sllhlldd R l l d S d O E

Early NO% W ~ U C L i O n s

6% 70, No. 91IThursday. May 12, 2005/Rdes and ReguIatitions 25285

ntono attainment in 2010 but believed commenter conlendod fhat technical 2030 attainment could only be helped if limitations of Sdective Catalytic there wera some restrictions on the Reduction (SCRJ operation would not n u d e r OFERG that could bct mated, permit facililies to sImpIy mn all of

SomaERC suppartea wanled credtt their SCRs yam-rnuad, Mam for wintartime emissions Faductions spscificalIy. tha commontor hiioves &e only, wbilct 8 few believed that credit lower D mung loads, typimlly ofthe should be &en far reductions at any winter&e dispatch, would not maul t h o af par. One mrnrnenter advocated the minimurn conditlons nmmsary hr providfng ERCS for win lerhe SCR operatJon (Le., at lownr capacity tho raductions only as part of a broader stack gas tmperaturos will not support pro wal to creafe a bifurmatsd NOX the use ofthe mtalysll. Fewer tradng systarn ci.e.. separate wintertime wintertime opportunities to operate the and SWnIII8rhtf3 dbwances end SU7s isbeliaved by the commeater to trading market5l. msult in B smaller projectad ERC

M W O f t h mmmnters SUPPodng astimate.This was on ostimats used for the 1158 of ERCs adyomated ihat thoy be dkeussfon purposes and i y ~ s not dstrhuted from a pod of ahwances d k d y used in thc development of tho similar ta the CSP used in the NOX SIP csp. CaL [The NOx SIP Call CSP wa5 a b e d A faw commenlm advocatod pod of NOx ellowanc~ that w m providing credits to any source that dlsMbuted on a first come-first s ~ l v a raduced emission n l o s blow thoso prorated, ornaed basis, depanding upon used to detcrrdna tba CAR State the State]. Commentm notod that the budgok. One cornmentar suggestad that CSP appmeeh hes already been part of !ha rates be based on thoso rates used to a litigated rulnrnaking and providms ihe dstsrmins &e NOx S p 0 1 1 ca added bene6t oflhItIag tho told A few cmmentsrs proposeGnt thn numbar of ~ ~ O N ~ C B S that ean be EFA should dwdop a stratfgy for dfsMhuted for early reductions 0th crediting NOx raductions from s ~ m n s mnmenters rrrposad that should the that have Implemented wntro1 final npproai usn a pool a~a~~owances, measure6 ~n response to Siato-lovel this pnol shouId not ramnva dlowances regulations that am mora slrlngent than from t h ~ &sling Stwte NDx badgot. &a NO% SIP Cnll. Another commenbr Another commenter suggested that advomtad only providing ERG in States sllawances fmm a CSP could be subfect to boih the NO, SIP Call and tha distributedhased upon a NOx missSon CAR. rate, such as 025 IbslmmBhl, Some commanters did not support Um A l 1 o w ~ ~ ~ could be dishibuted to any WB of NOx ERCs in any form. Tbme mum smIWng below tha target cornmentars beliom that &e use d E R 0 emission rate. would delay attainment of tha CAE

Seveml cDmmenters wera mncernad amIssIon caps. loo man wB1' as b. NO# Early Reduction Incentives in NOX SIP Cal~allnwancos) could be

introduced into t h e CAB and the nbllity afthe NOx cap end trade proprn to The [=AIR ozona-season NOx cap and meet the annual and caona-smsm tmdB d e will allow the proposed 1369 reduction gods could b cornprodsad oFNOx SIP Call dlowanws ufvinlagu Soma coommsnters sugsastod that yaars 2006 and earlier Tor cornplianca in crediting early raductions at a diswunt the C A R This mechanism would (e+, 2 tons ofN& raductions earn 1 provida incantivs Tar sourcBs in NOx ERC) could mitigala this concern. Other SIP Call Stam to redueo thok ozona- wmmanfers noted that a CSF-styla season NOX smksions and bank m e c h a n h also provides safeguards additi~ad alhvances into the C f d k against an overabundance of nCs . Bemuse inday's final oznni-so89on cap Another cummmmter nobd that and trad~ rula Includes a mandatory restridinns on the me of ERG similar ozone-saason NOx cap in 2009 (tht to fha progresslvo flow contml (PFC] modification is discussed ia saction Wh moebnnismusad fa tbo NOx SIP call- ths provisions to allow tho baking of PFC rastricts &e use of banked NOx NOx SIP Call allowamas into the CAIR allowanms for compliance in years am adjushd to mfIed this tvbaru the NOx bank Is greaterthan 10 im lamentation data psrcont of ths allowtions--codd heIp $hB CAIR annual NOx cap and Imdn to m n c m O f f I O o d l n g the rule will provide additiional incantfves with NOX ERG. for s d y annual NOX reduetions by

Oao ammentar bdlleved that Qe creating a CSP €or C A R Slntes horn EPA's projection that tha atentid p o d which they EMI otrskibulo allowances of NOx BRCs could ba as &e as 3.7 for early. surphs NOX emissions million tans [pressnted in the June 10. raduetinns In tha years 2007 and 2008, 2D04 SNPR) is unreallstIwlIy high. The The earning of CAIR CSP allowances b r

Rules

6%; 25286 Federal RegisferlVol. 70, No. S11Thursday. May 12, 20051RuIes and Regulations

NOX omission reductims does not begin untiI2007 bncaum this Is t h ~ fmt yam n h r the State SIP submittal deadlinnes. The CAIRCSP wLll pmvIda a told of ZO0,QOD 136 CAR annual NDx dlowances of viatago 2009 in sddition to tbe annual CAIR NOx budgets.

Ths CAIR’s CSP i s patterned after &e NOx SIP CalI’s CSP, which is part oran pstablishod and extansivaly litigated mhnRkia& Simflatitios Include: Limhing thn total numbor of allowances tbat mn be distributed; limiting &a years in which CSP allwances on ba n m a d : papulntIng the CSP with dowmces vlntsged ths k t compliance year: and using distrlbuuon criteria of earl reductions and mad

he EPA w B appodon the CSP t B tho States based upon their share nf tho final. rqionwidn NOx CAIR reductions. ShIIar to hhe NOX SIP Call. States may distribute b s a CAIR NOx allowances to s~urces budupon either: (I] A demonstration by the snwm to thn Stale of NOx emissium reduciiom in surpIus or any cxisthg NOx emissinn control requitomants: nr [Z) a dsmomtration to tho Stata that the Facility hus a ”need” that would affect al8cMdty grid relia%illtjr. Sourcas that \vi& to receive CAIR CSP all~wmccs basod upon n demonstration of surplus emissions reductinns will ba awarded one CAR annual NOX allowancfi for ewry ton of NOx emissions reduc!ions, [Should a State fsc~iva mom raqunsts for ellawanees than thalr share Df tha CAm CSP, the Stato wnuId promte the- dlowancn dlstrlbuttun.) Detwninatim of surplus amissions must USB emlssfons data measured using part 75 monitodng.

The EPA electad to ineluda Iha CSP in response to several cnmmsnts ncting the benefit of early NOX raduclions aad 6 0 m wmrnenters concerns in complying with !he stringent Phase I CAlR NUX cap, While EPA analysis has shown that sources had suffidsnt t h o lo instdl NOx emission controls, the EPA doesbalieve that i t would ba appropiate to provide some mechanism lo allwiatm tho concern cf some saurcEBs whfeh may have unique i55ues with complying with the 20DD implomeniation daadhu. In addition to mitigating s o m ~ oFthe uncortninty t o p d i n g tha EFA pxojeclions OF rtsourc~s to corn ly with CAIR, the CAIR CSP also s16divalp provides incentives for aarly, surplus NOx reductions.

that edvomte allowiDg SDWBS to Tha P A ngraes with tho comments

-rho m.aw tnn pod mudm ~ba ism to= that ~rmtd b DS and Nj ’a a b S&n V nf today’s ndnn d m a h In dalnll tbn Stabbyshis appdanmmt olharPI: EP.

I=AfR annual NOS allowancas only for thoso raductions that 818 in surplus of h a sources’ misting NOx rnduction requfrernants, By allowing sources in NUX SIP Call and aon-NOx SIP CaU 38tw to demonstrate thnr lheP year- m a d carry reductions are mdy “surplus” ad, !herefwe, deserving of CSP dlowanccs, the EPA is responding to comments that the EPA shnuld allow SOUTCES In non-NOx SIP Call Slates to receivn credit for eadyreductlons. Some wmmsnters advocetrwl mditing SOWRS in tho ozomsexun NOx cap and mde propam that emittad bdow the srntssion rate usad to datermine tho ozono-se85un budget. The EPA did not accopt this recommandation because a sourc~ that is dIow0d to hnk NOx SIP Call dlorvances into L ~ B CAZR ozone- senson NOX program and remiva aarly radudion credit from CAlR’s CSP would be essentially “doubla.eounting” &at srnissIon redudfan. Tho EPA did not raskict tha USB ofthe

WOX allowmeas awarded brr~ the CSP bemuss savaral aspects oftho CSP already address concern that too many total credits would he distributed end tbat they wauld flood the markets. Fiat, thtt CSP I5 a finite pool OFNOX all~waacas. Second. by requiring sources to raduca ann ton of NDx amIssIons for swory NOX allnwance awardnd from the CSP ensures that slpificant reductlorn are made prior to the CAIFl implomentation date. C Are There hdividuol Unit “Opt-In” Pmvisiuns?

poteutial appmach for allowing certain units to voluntmiIy artrcipata in, or “opt-h,” to the && Originally, WA

roposed to have nu opt-in provision {ut h~duded languaga in the S m R on what a potentia1 opt-in provision may look like. This ‘potential” apt-in provision would haw allowod non-EGU boilers and turbIne5 that exhaust to B sleek or duct and monitor md mpott in accotdancB with part 75 t o apt into the CAIR. ‘Ilrs optin unit would have been raquted to opt-in fur both SO: and NOx. The allocation methud for opt-ins assumed a ercentaga SO2 reductIw

wem equal to a baseline heat inpui multiplhd by a spacihd NOx emissions rate, the same NOx srnissians

assumed EGU budgets. Allocations wam updated annually and after aptiag in mils would have had to stay in tbs CAIR for a midmum a€ fi years. The EFA rncdved many commants in favor of and very few comments against including an opt-In rovlsion in the final m10, AS a msuX EPA i s ineluding

In h a SNPR, EPA described a

horn a base k ne and for NOx, d O C 8 t i O f i S

rate EGu5 WBT8 SUblWt kl h I h B

an op t-in pmvlsbn in this final d e t h ~ t is basod on tho npproscb d d b e d in the SNPR but lnchdns several modifications and addititins in mponse to wmments as doscribed below. In p n d . EPA bdieves aero Is vdua to including ~n opt& provision but bofiavas that source~ that opt-in should bB responsibla lor a carlafn ~ e v d of reduction below ils baseIine b8MISa of the sdditiand flexibility provided to that BOWCD by opting into B roglonal trading program and boeauso of tho possibility that partici stion in ths

potential required reductions.

approacb has as Itsgoals to provide mom flexibility to tho mlts opting in ps rvaU a5 to potentially prnvide more cost- elfeelive reductions for the affected EGUs but aha to msuro a cprtain b e l olreduction hum the units opting into the program. 1. ApphbilIty

Some rommenlers suggested that the apt-in provision not be r i l e d tu holIea and turbines but should be open to my unit The- EPA strongly bdievm h a t any untt artfcipating In an missions tra$Ing prognun hs subject to accurate andrelhble monllorinp and Toporting requhments, This is the purpose of part 75. The EPii has devnlopad cribria lor boilers and turbInBs to 5alIsfy the requirements of part 75 but bas not doval~ped e r i t d a br all nan-boilers and turbines and, therefme, =mot bo wnfidont h i r amIss~om can bemonitored with tlre high degrea ofaccuracy and ralIabiIity required by a Enp-and-trado program. Continuous Emissions Monitoring System or “CEMS’ rn typically what is required by EPA to partIcipata in a w -ond-ttadD program. fn respons~ to commanu reeehad

suggesting that non-boibrs and tuxblnos be allowad to opt-in, EPA is expanding applicabiIity of he opt-h pIdsion la include, In addition IO boibrs and turbines, other fossiI FueM-Iited combustion devices that vant alI emissions through nstack nnd meet monitoring, recordkoopig, and recording regutemants of part 75.

2, Allowing Shgle Pollutant Some cornmantes suggested h a t

SDU~COS should be dowad to opt-in for onlywa pouutaat instead of requiring t h ~ source to opt-in far hoth SO2 and NOx 85 WA pmpnsed. T h ~ e

may only emit significant amounts OF ona of tho two reguloted pollutants and that it would nottmeke S B ~ B to require reductions in both pollutaats from such

CADI may reduce or e P imhato fulura

ThmefOm, f h ~ l ~ l h h g Opt-in

C O ~ ~ t Q I S w e d I h S t SOmB 5OWCBS

Federal Re~iisterlVol. 70, No. 91IThursday, MRY 12, 2OWRuIes and Remlntions 25287

a some. Tho EPA a ~ e s with this eommant ond will &ow units to opt-in forms pollutant, La. NOx, SOZ. or both. Another mrnmenter suggostsd that EPA allow non-Ems subject to the NOx SIP Call to opt inta the CAIR for NQx only without rnquiring any reductiom in S a . This commenter argued that them non-EGUs could simply turn on thefr SCRs during the non-ozone soason and eesily nchiove signEfiennl NOx roductroas. The ETA agrees that t h o rolnllvoly smell number of aon-EGUs subject ta the NOx SIP call that have SC& could achiave significant NOx raductlons by operating thsh SCRs during the non-ozana so890n. As statad ab0v0, EPA f6 allowing s o u r c ~ s to opt- In Tor one pollutant and thus aon-EGUs subjncl to the NOx SIP calt may apt-in for NOx only. 3. Allocation Method for Opt-Ins

sllowanccs to opt-in units on a yearly basis. The arnuunt of a?Iowances allocntod would ba calculated by mulliplyylng an d s s i o n rate by h a Iasser nf a basalha heat input or the actual hsat input monitored ~t the unit inthe rim ~ar.

The{asd&e heat input would bo calculated by using the most mcent 3 years ofqualitpassured pad75 monitoring dala, When lass !ban 3 yeas of quaIity-assured part 75 monitoring data is avallable, tha hont input would be based on quality-assured part 75 monitorinn data from tho y ~ a r bdom the

In t h o SNPR, EPA proposnd allocating

unit opled-in. For SO% W A aroaosed that tha

ofissionitn usid i n dculnta alIocatIans would be tho Ieser or. !ha most shbgant Stata or F d a d SO2 omission rata that applIod in the preceding year or the emisslon rate raprosmting 50 percent of the unit’s basdinu SO2 emission rats [in l b d mmBkul for the year5 2010 through 2014 and 35 percent ofthe unitk baseEn0 SO, sm*ssIonreta [in 1br;lrnmBtul for 2035 and beyond. For NO,, EPA pmposcd that tho mts5ion rate wourd bo the lower ofthe unit’s baseline omission rate, the- most stringant Slate or Faded NOx omhion Iimitation that appIias to tbe opt-in unit at aay h a during the Ealendnr YPX prior tu opting Into tho CAIR PrOgmm, or0.15 Ibl mmBiu for the years 2010 h u g h 2014 and 0.11 lbslrndtu for the year5 2015 and beyond. In today’s final ruls, EPA i s making B

number of changes to its proposad methodolqy far calculating alIocati~ns far o bin units, W h reprds to basoIIno heat input, EPA is rsqulring that s o m e s may onIy us8 part 75 monitored data forgears in

which they have maintained at least a 9D percent monitor availability. Tho EPA i s making this change because part 75 contains missing data pmvisions that requiro substihutinn of data when monitors are unavailable, When units have IDW monitor avoflability, units are required lo report mora conservative [e&. hIgh8rl heat inpul values. This is to provide ELII inwntlve to rnaIntaIn high monitor nvaiIMity (shea undera mp and trade program smmw would bB raqulred to turn inmcm allowaness if t h y roportrtsd bigher ernlssions1. When s~ttiwg baselines, sources have the opposite- inmntlvo, reporling a higher heat input would result in a highnr basehe and thus a greater allocetition.

With regards ta the SO, srnIssinn rata wed to calmIata a l lodons , P A is raquiring that the emisshn rab u s d tu calculate allocationswouldbo tho lesser of. the most sbingont State or Fedoml SOZ emission rata that applies to thhe unit in theyear h t the unit i s brting aUocatsd for, or fbe m i d a n rate representing I D percent of tha unit‘s baseline Sa emission rate (in lbs/ mm3tu). The EPA Is changing th8 percentage emission reduction upon which allocaths are basad because same commantars su@esled that instead of using pBKWltag0 amissfon reduction requhements that ora the Sam0 as t h o requirements for %Us as D basis for allocating to opt-ins, EFA should require smissions reductions based on similar marghnal cost of control. The EPA awos with the basic coneapt that amisdons raductions for opt-ins should ha basad on dmilar marginal casts. One commentor stlbmltted r d t s horn a study ofindustrial boilarNOx mnd SO2 conml costs hat indicated the USB of similar marginal cost of control: would result in appmdmately a 30 percent redudon in NOx and SO2 by 2010. While tho commentw provided Iirnitsd data lo allow EPA to avduato the commentor‘s f~stIrnatas, EFA is using this percentage reduction requirement for the opt-fn pravisim, The same cornmentar stntnd lhat it may be pnssiblo tu nchievvs mare than a 30 percent mdudfon in SO2 and NOX by 2015 by empinying futuro unspeclfled tachnology advances. Beceusa thesg filum technology advancas =a not specified nor demoashled, EPA i s not requidng mom than a 30 pareen& radudon in 502 end NOx in 21115 and b~yund for opt-ias. Tho EPA k changing the mquirement to use tho low& raquimd amissbn rate for the year prnmdhng uls year in which allowances mo betng allncatod to fha lowat mission raio for the yoar in which dnwances am baing dlocaled. The WA

is making t h i s change hmwe ET’A bollwes tIInt such data shodd ba available and that this mom accurately raflaets the Weat of the rule tu enwe that the s o w e is ant heing aIlomted 8 gmater numhar of allowanws than Lhe emissions a SDUTCB Wouhi be d a w a d ta emit under the rejydatiorts It Is subjsct to in the yeartha dlocdons me being mada The P A iS findzing parallel provlsions with respect io NOx. 4. Altmntive Optdn Approach

include an altomathe a pmach to nptin into the CAR 141s alternat~vn w t l d allow units to opt-~n as oarly as 20DO for N O x and 2010 for SO2 and m d v a docatlons at t h a f r m n t smisston IevoL in roturn for 8 commitment to make deepsrtaductioas by 2015 than would be requlrod under the gene& opt-in mvision dsscribad abovo. Themfore, P,r he years ZOfO though 2014, t h e unit would be allocated dlowancas based on the sam~ heat input used under the general opt- in provision [e,&, &e lesser of &e baseline heat Input or thehnat input for &e year preceding the year in whtch alIocations are boing made] multiplied by an missionratB. This emission rah wouId be Lba lower afthe emission rate

opted 3n or the most stringent Stato or Federal emission mle requhd h the year that the unit o ts in. For SO2 fat the years 2015 andgeyond. tha ilnh would be allocated a1Iowaaces basad on the S a m hoat hpuf multipliad by an emissk~n rats, ThIs nmtsion rate would bs the lowar ofa 90 porcont mduction frpm tha baseline amissiun rate or the most slrhgant State or Fcderal emission rate mquhd In fha basoliino year. For NOx. the samft ma tho do lo^ wodd be usad, except that the emission rata usnd forthe p a r s 2015 and boyond would bo tha IOWW of 0.15 l b s l d t u or tho mast striagent Stata tlr Fedenl amisslm fatu requirod in the basehe year. Th% EPA bolieves tho anvironmental henefit of achieving dseparnmlssions redudIom in the future (2015) fmm souxcos that may otherwise not make such deap emissions reductiuns is rvorth induhg in this final rule.

5. opting out In ihe SNPR, EPA prnpmd that opt-

in units be requtred to remain In tho program a minimum af 5 ears after which t h e they could voluntarily withdraw from !ha CAlK Soma cornmentea exprssed concern over lhis proposed approach arguing that hgcause EGUs affectad by &he CAR are not allowd to ~ol~ntar i ly withdraw from the CAlRthat opt-In SDUICBS shonId not ba allowad to v a h n t d y

Snme mmmeatars suggested thnt P A

for tho YBBP Or Y C B E bflfom th8 Unit

25288 Federal RegistedVol. 70, No. 9l/Thursday, May 22, 2006f Rules and Regulations I

tvithdniv eithor. The EPA recognizes that Dpbin sourcessucb as industrial bailers md turbhnns tend to be mare sansitiva to changing market forcas than EGUs. As amsult, EFA holiwos i t is appmprjate to alhw opt-in SOUXBS who vdunarily parkipate in an missions reduelions program to bo nble IO ond their arlIdpalfon ur Popbout''] aRar a spadsd period oltirna As proposed, EPA helinvw a eriod or5 years Is a pmpriatn mfis finalizing a mle to fffow 0pt.h SOUTe85 to 0pt.mlt attar parlicipating tn the CAlR For 5 years. Tbis option to opt-out aRer 5 years does not a ply to sources that opt-in under tho aiemativs epproae~ Sources that opt-in under tho altamattve approach

6. Regulatory ReUeffor Opt-In Units Tba CAIR doas not ollarrelief from

other regulatory ro uirmants, misting or future, for units & at op t-fn ta the CAIR cap and haads program, Any revision of requhmsnts for oiher, nom CAER prqrams would bo dom undor mlernakIngs s sdnc to thoso m As discusses abovo, EPA is!ncfi?ti

two diffmnt appmaches for opf-In unib to follaw, a general md EII altomativs approach. The EPA is includhg both epproeches in this final mle in rasponsa to comments supportive of Including an dtemsdve m a n s and tu pwidBgreater flexibility for SOUTCW to pailidpals in the CAlR hading program. Opt-in suurws may seIcct which approach Is more npppriate for their pnrticular situatiPa. An opt-ln 6ource may n ~ t switch h m one approach to the othw once In &a pmgmm. States have the fldbility to chwose to include both of tbpsa approachas, one of ther;a appmchas. or none orthorn in &dr SPs, EPA is not requIrtng Status to include 811 iadividud unit opt-h pmvkion IJBMUS~ the partreipathn of IndividuaI opt-in units is not rqutad to meet thagoaIs ofthe CAR Howwvar, Statas cannot cboose i o haw an indivldualunit opt-in approach dIRmnt than what EPA has €lndfzed in t M 5 mla and stll1 parlidpato in !ha Iatsr-Stata -ding pcogmm admfnisf~~ed by EPA. H. What Are the Source-LsveiEmfssions Manitfiring and Bepotting Requirements? In tbe NFR. he EFA proposed that

sourm subject to &a CAIR monitor and raport NOx md SO, mass emissions in Pceordanco with 40 CFR part 75.

Tho madel treding rules incorporate pari 75 monitoring and are bdn8 hal lzed as proposed. The majority of CAW snuc~s am measuring and reporting SO: mas srnksions ytlar

may nDf Dpf-OUf at fIm8.

m u d under the Acid Rain Program, whteh requires part 75 monitoring. Most CiQK sources ara also raportin NOx mass emissions ear round u&r the- NO, SIP Call. T ~ B CAlR4Foctnd Acid Rain SOP~CCBS &at ara hcat8d in Slates that are not affmied b tha NOx SIP W

srnission rates yearmumf but da not currandy roport NQx m a s emfsslons. Thea s o w s wiil mad to modify onIy their reporting pmclIces in order to comply with l h h a proposed CAIR monitoring andreprtfng requirements,

using part E monitoring, t h m ware very few cornmmnts on tha source-level monitoring re uirements in this rulsrnaking, T%a comments the P A raceived related to SQU~'CBS nnt m n t l y monitorhg underpart 75. Commanters suggested that altarnatIva forms of monitoring bg., part 80 rnonilohgl would be appropriate- for tbasa snums. 9% P A disagrees. Consistent. complete nnd ecnvate maasurment of smissions ~ m m s that each dlawanca actually represane ~ n 5 Ion ofemissions and &et one ton nf reported emissions hrn on0 soum Is squivalent to on^ ton ofreported d s s i u n s h m mother snurcn. Similerly, such measurement of omissions e m s that each single aiInwanea [or gmup af S G allowances, d~ppending upon i l s~ SO2 allowance vinlapl reprmds ona ton of smhssians, regardass of thu source for which it Is msaswed mind reported. Tbis establisbos tha integrity of each allowance, which iastiIls confidence In tbe uaddying market r n e d b a n h s ibat am central to pruviding sources with flexibility in achiBQing wrnpliun~~. P M 75 has flexibility rolatIng to the t y p of fuel and amfssIon lovels as wsU 8s procedures Forpedtioning for ahrnalivas, The EPA bdbttas this provides tho nquesled

'%%fa Stattebl elect to usu tbe exam Ie d1cmiion appmacb, tha EFA wouI a mnd@ the part 75 monitoring and mporthg aimments to coltact in~ormationw%~determiningths ellnwanee aShEattons for Cnrnbhd Haat and Power (CHIJ) u a k Mora s p e d f i d y , pmuisinns for the monitoring and reporting of the BTU contmt ofthe ~ t ~ m output wm?d be addedto the existing requimmonts. Tha InformatJon on e l e d c i t y output currently reportcd under part 75 would ant nead to be ravisod to allow States to irnplemmnt the mmple d h v m n c ~ allocation a roa& In the S&, the EPA proposed

cmiinuous measurement o€SQ and NOx emissions by all ~ x i s h g afbcted SOUTCOS by January 1,2008 using part 75 EsrtIBed monitoring matltodotogias,

mrrantlymmmzn i re ortrJ0~

Bemuse SO XlRtly SOUKCM arS & d y

New SOUICES have sepamts deadlines bassadupon tho data ofcommancament of opamtlon, consistent with the Add Rain Pmgram. Thesa dcadhes am finalized as proposed, I. IVhnt Is Difle~ni Behvenn CAIR's Ann u d and Swsond NOx Madd Cap and Tmde Rules?

Today's action finalizes not only the pmposod CAIR annual NOx p m p m and annual SO2 program, but also a CAIR ozonweason NO, program Bemuse ihe CAIR ozone-smson NOx program Is the only 02oni3.~ea50n NO% cap and trada propm that b D A will administer, NO# SIP Call Slates wishing to moot &sir NOx SIP O U obISgatIons tkough an EPA-administorad regional: NOx program will a!so USB the CAlR ozone-season d a T h o EPA bdfevas that Stntas and aff8ct~d sources will benefit born having a single, comistent

This soctinn of today's actlon highrights any b y diffarences hetween thn eAIR ozona-s8a3on NOx model ntla and the NOx SIP Call model d o , as well as the CAIR anaud and ~mna-season NQx model rules.

Season NOx Model RuIa and the NOx SIP Call Model Rub

W h h the CAIK ozom-soason NOX mod01 mto closely mirmrs tba NOx SIP Call rula (as doas the other CAE rules], ths EPA has incorporaled into t h ~ CAIR mnda1 d e s ita &ence with

(Including seasonal NOx pmgmmsl. T ~ ~ B S B modifications Include the

R UnresMeted h&g:Tho CAR ozomseamn NOx modo1 d e will not inndude any restrictions on the banking Of NQx SF R h W C i Y S {YintegaS 2008 and earIier3 or CAlK ozoimieason NOx allowances, The NOX SIP Catr d o s indude "pm~esseiva flow control"

rovisims that mdum tha value of fanked allotvanear In yeas rvbero f b ~ bank i s above a carfain percontaga of the

for a d ~ t a f h d dkmsion]. B. Facihy liwel wrnplfancB: The

CAIR nzona+spasm N& mudd ruIe will allow sourees ;a comply with the allowance hdding requirements at the fadity level, The NOx SIP Call ruhs requhd unit-&unit bvd wmpliarrca wlth certain typas of alIowancs accounts providingsnme If BxibSIity far 6011rces with multiple afheledunits. (Sea the JUB 2004 SNPR. saction N €or a delailed discussion). The EPA beliavos tllat these chapgas improve &a programs and tbat bnth CAIR and NOx SiP Call affeetsd sources

@ O U ~ NOx ~t lp md badB pr~gmm.

DihMCUS BBhVOBn the OZOnE-

implsrnonting tra "g ing programs

follnwing.

cap. (Smsodion vmm of today's d a

Federal RegisterlVd. 70, No. 93 /Thursday, May 32, 2005 lRuIes and Regulations 25289

wIH benafit from mmplying with a cinals, rgionwide ~p and trade PW-. Differoncns Bctweun the CAR Omm- Season and Annud NOx Model R d a The CAE uzonw~s8ason and nnnual

N0.u model d e s am dosigned lo be idant id with tha oxception of (I) pmvfsions that reIa10 to compliance puriod and Izl the mechanism fur pmvidlng incentives for early NOx roduetIons. For compliance related prnvidons, ~ L B EPA atbmpled to maintain as much consistency as possible behveen thbe CAIR annual and mone~~ason NOx modal rules. For BXBmple, mporting schedules mrnain synebmnized GA, quarterly raporling] for both D~LD CAR NO% model das . For tho annual and ozonwaason NO# model d e s , the @A did d8fine 12 month and 5 month compliance p~riods, respedivd .

Incentives for ear& NOX raductioas dtffor between the CAR annua1 and ozonwseason programs. Far the annual NDx program, early reductions may bs rawardcd by Stntos through a CSP. [See secliun vIILF,Z of today's action for a dotailed dismsdon.) Tho CAlR m o m smon NO= model rule provides incentive for early emissions mducuons by al1awing the bankhg ofpte-2009

ozonn-soasan program. J. Are There Additfond Changes to Pmposud M d d Cap and Tmde RuIes Aeflect~ed in tiie R e p l a t a ~ L a n g u q e ?

Tho proposed and find rulas are modeled after, and we Iargaly &e S ~ B as, ths NO% SIP Call model trading rule. Tdeyls h a 1 mlo includes some relatively minor chaa os to &e model d e s ' rqu~atory t a t &at improve the 1mpIamentabiUty of the rules or clarify aspects of t h ~ rules Sdentihd by the EFA or cammenten. Wots that sectrnns WKB through W.H of tuday's action highught the mom sigaifieant ma&ficaltons included h tha final model rules).

Om sxample of a relatively minar change is the inclusion of languag~ In the SO2 model d e that irnplemsnts thbe retiremant ratio [z.ao) usad for allowancas atlueabd forzoio to 2014 and tEtarotlrommt ntIn (2.86) used for d l o ~ m ~ e s ailacaiad far2015 and later, that darifies tho complimm dedudian process and that prcivldos for rounding- up of hactional tons to whole tons of m B s s Q ~ ~ S S ~ O ~ S . Mora specifiedy, 8 s dahition of "CAD? S a allowance'' states that an altowance ahmtod for 20'10 io 2014 authorizes emissions of 0.50 tons ofSO2 and that an d w a n c e nlbmtsd for 201s or later authorizas

NOx SIP d 1 0 W A l l C B 5 fato thS

PmkSiOnS of 0.35 tons of S O ~ w h i e b or tho EPA to takn anforcement action. cornsponds wilh th0 2 8 6 mtirmont lo only knowhf: vIoIations or knowing mtI0, false submissions.

Other, less significant modifimtions wlve also included in the regulatory text IX. h'erzcKuns o*ar Clean Air of ths fud model d e s , These inclub: Act Re41tirements

C Units and sourcas are Identihd separately forNOx and SO2pr0gramS [@.EI CAH NOx units, C A R NQX azonfi s s k n units, and CAntSO,~dts) sinco Stales can participate in one. two. ur three tradh programs;

D.The dekution of"rramap1ate ca city" is clarified

FTho language on closing of goneral accounts i s cIarSed; and, F. Prowss ofrecordation ofcAUtS0~

allowanco aIloeaUoas and mnsfsrs on mlling 3byearpmiods is addod In m t a it consistent with Add Rain regdationa

Another w m p l o of whm today's fmal model tmding rdos Inwrpmata relatively minor changes from the proposed rnodd LmdIn~ rules involves h a provisions in tha standard requkamaats concerning liebilky under the trading rograms Tho pro used CAlR rnodarN& and SO3 trafing mlas hcluda, under tbe standard raquhments in §SS.lOS[fl(l] end [Z) and ~ S S . Z O S ( f ) [ X ) and (21, pmvfstons statlng tbat any person who knoWrngIy V ~ O ~ R ~ C S the CMR NO% or SO: tmdhg programs or InowSngly makes B faIsa material statement undor the fradhg programs will ba subject to enfarcoment action undsr applicabla Sta!s or Faderal law. Similar provisions me included in 5 SS.G(fl[l? and [ Z ) of tha find NOx SIP C d model trading rule. Thn find WlI modd NOX and SO:. trading rulns axdude these provisions for the fdorvhg masuns. First, the proposed mla provisions are unnacessaq bBcause, wen lo their abssnce, applkabln State or Faderal Iaw authorizes enforeemant actions and pmaltim in ths case ofknowing vlolalfons or knowing submission of f i e statoments. Moreover. hose pmposed rule provkions or0 incompleta n a y do nat purport t u covm, and bav8 no impact on, liabfllty Far violations that am not knowingly committed or bise submissions thet 8ra not howingly made. Applicable State and Federal law already authorhs enforcement adions and penalties, undar approprhte circumstances, for non-howing vjolathns or false submksions. Barnuse tha proposed AB provisions BTB unnacossary and incom lete, the final CAIR model NOx and S& trading mlcs do not iacIude these provisions. However. tIm EPA omphasks that, un thak face, b o provisions that w w proposed, but alirntnated in the find d e s , in no way limit hbi1ity. or tho ability of the Skate

A. How Daes Th3s Rule Inlcmct Wth the NOx SDJ Cd?

A majority OFStntas affected by the CAER are also nfheted by tho NOx SIP Call. ntis section addresses the intomdons bahvaen Ihs two programs. The EPA proposed that Statas

ach?ovlng nll of the annual NOx reduclIons required by the CAIR from only EGUs would not naad to continue to fmpnso seasonal NOX limitations on EGUs from whfch thy required roduetions forpurpmsas of wmpIying with the NO8 SIP Call, Also, EPA proposed that States would have iha option ormtaining such seamaat NOx lirnitelIons. The EPA also proposed to keap &E NOx SIP MI In plam for non- BGUS C W T ~ ~ subj~ct to the NOx 5P CalI and to conttnm working with Statas to run the NOX SIP Budget Tmding Progmrn for all snurces thnt w o t d mman In the program. h rssponse to comrnento~s, EFA i s making seveml modifieathns t o Its pmpospd approach. Stales Affected by the CAIR for Ozone andPMu Wdl BQ Subject to 8 Sflasond and M Annual N& Limllation A number of c o r n r n ~ n t ~ r ~

rocommondsd leavinghmrrent NOX SIP Call O Z O ~ B senson NOx h i t a u o n in place a5 B way lo OI~SUTB that ozone smm NO, reductions from EGUs required by the NUX SIP Call would continua to be nchirtvad Soms cornrnonte~s q u a d this would also h I p noa-EGUs currently subjeet la the NOx SIP Cali by al~owiog them to continue trading WtEr EGUs tr a saasonal NOx program. Many ofthe same commsntars suggesteda dual-season or bfkatted C A H tmding program as a machan1sm for maintaining an ozone soason NOx hi ta l ion for EGUs undor the CtUR In respoasa ta &esse crrmrnontm, EPA is requirig &at States subjsct to the CAIR for FMx be sub act ta 8n annual

CAIR for omna be d j e d to an ozone mason limihthn. This means that States abject to tha CAIRhr both P M u and ozom are subject to both an annual and an ozone seasm NOx limitatton. The annual and mons SBEEO~ NOx limitations BIB described In section lV. S!am subject to the CAN for nzcrno only are only subjaet to an O Z O ~ O 5 w o n NUX limitutron. To implement these NOx IImifatians, EPA wuQ astablish and OpPOratP two EJoxtradingpmarams, i-e..

Ifmitation and tl, at Slabs subjact to ths

a CAlR annual NOx trading program and 8 CAlR ozone 59350n NOS trading program. The CAIR ozune season NOx tmdiag p r o w will rap lac^ &e curreat N& SIP Call as discussed In mom dalail lstsr in this section. What WilI Happen to Non-EGUs Currmtly in thn NOx SIP MI?

A number of wmmenters w m concerned that t h ~ cost or wrnpliaace for non-EGUs in the NOX SIP Call wmld inmase ifthay were not allowad lo coatinun to trade- with Ems. In mpomo to t h ~ ctrrnmontm, EPA is mpdtfyin Its proposed approach. The EPA is a l h n g States effected by t h ~ N0.y SIP fill that wIsh to USP EPA's mndol iradhg d e to 3nclude non-EGUs eurruntly coverad by the NOX SIP 0 1 1 in the CAR ozones~8son NOx mdlap p m g m . T h i ~ wiI1 mxiure that nun- EGUs In the NOx SP Call \vi11 cnntlnua to be able lo trade with EGUs as thoy currontly do undar &e NOx SIP Call, This will no\ r a q u h S!ates to get additional reductions h m non-EGUs, Budgets for t h a e units would romain the s m e ns they aro currently under the NOx SIP Call. Slates will, hnwavor, ba required to modi& thek &sting NOx SIP Call regulations to Teff ect the mplncament of tho NOx STP CalI with tho CAE ozonn season NOX h d h g pmgnm. Tha EPA will continuo to operate the NOx SIP Call trading pro- until Imphmnntation of the CAER bagins In 2009. The EPA will no longer operats the NOx SIP Call trading program after the 20118 ozoneseasun and tha CAm ozone season NOX trading program rvilL raplace the NOx SIP Call trading prngram. If Statas &acted by the NOx SIP Call do not wish io USB EPA's CAIR ozone season NOx tmding pmgmm to adhiova reducttons from non-EGU boilers and turbmos M uired by the NOx SIP Call, they would%o' r uIred to submIt a SIP hvislon dy B sthg tho mquiromeats d a h d to non-EGU pnrtIdpalloo in the NOx SIP Call Budget Trading Prorogmm and replacing them with now requiremonts that achhve &a same love1 olreduction. Compliance with the NOx SIP bll for Stat= That Am Sulject lo Bath the CAIR Oznna Seaon NOx Reduction Requimmsnki and the NOx SIP Call

respect to its NOX SIP Call reptatSons are: [ll Ta bring non-EGUs that are cumntl partici atiag in tbu NOx call ~ u & o t ~ r a % n p Pro- into tho CAlR ozone swan program Uslag the SWB non-EGU budget and appliwbIltty requirements that nto in thnir existing NOx SIP cpll Budget Tra&ng Pmgram; and (21 to achiave dI of the emissinas

If the only h g e s n Stale makes with

reductions requimd under the CAIR h r n EGUs by participating in tho W umne season NOX trading program. EPA will End Qat tho Stale continues in meat tha raqukmants of the NOx SIP Call.

respect to its NO, SIP Call ragdations BPB not those described above, see reclhn VI? fora discussion olhow the State wnuldsatisfy ib NOX SIP GI1

States in tha N& SIP Cell But Not Affecludby the CAIR [Rhods IsIand)

Rhodo Island is the only State in the NOx SIP Call that ismt alfeasd by tho CAIK. To continua rneatiq its NUX SIP Call obligations in 2009 and beyond, %ode Island will have two choices. It ma either modify itsNOx SIP Call tra1ing rule to conform to the new CAR ozane season NOx mdmg d e if it irislies to allnw its SOUCBS to continue ta partlleipata in an interstate NOX trading program ntn by EPA or, It will used to develop an alternative me!had Tor obtalnbg fhe requirad NDx SIP Call mductinns. In either case, Rhoda Islaad must wntinue lo meet the budget re drements offha misting NOx SIP

Use of Banked SIP Call Allowances in the CAR Program

As explained earlier in loday's final rule. banked allnwances h r n thg NOx SIP CalI may he used in the CAIR ozom mason NOx trading program Other Comments and EPA's Responses

One commantermota !hat barnuse attdnment demnnskations for early action cornpads were made basad on having EGUs and non-EGUs toptber in the- NOX SIP (=all, EPA wuld nat allow EGU5 io have the NOx SIP Call and still have valid early action wornpacts IEACS]. As discussed above, E A is allowing Stales to keep EGUs and non- BGUs in fha NOx SIF Gall together in one o m n ~ season program [CAR ozone season b d h g pmgram). The NOx reductions required by the CAIR ozone soason hading program mf~ slightly mort stringant &an t h ~ reductions raquired hy the NOx SIP Call. As n rnsuIt, &B attainment demonsmtlons for EACs wauld remain valid under tha C A R Having said &at t h ~ EAC mgmm will bave ended (April Z O W

gSrom &e C A I R ~ ~ I ~ is irnplemsntod Thus, fhe compacts will no longer be appl id le whan ths CAE takes &e&

AnothQr C O M M ~ ~ ~ P P prppnsd to have non-EGUs under tho NOX SIP call subjod to en annual NOx cap shi lar to EGU5 under ths CAR so t h a t non-EGU5 could continua to tradn with E U s . By

Ifftho anly changes a State makes with

UbugatiiXlS.

GII.

adopting a CAR omne smson trading pmpam that includcs non-EGUs covared by the NUX SIP Call. non-EGUs will be ab10 to continue to tmde with EGUs. 8. Haw Dms W s Rule Inlemcl Wth the Add Rain Pmgmm?

As EPA dwvdoped ibis regulatory action, much consideratlon WE. given to intemcEom bohvaan the addsting title Tv Acid Rain Program and today's a c t h dasipsd to a c b w significant reductions In 502 missions beyond title IV. Requiring SOUTCBS to r8ducs emissfom bapnd what title lV mandales bas both anvimmentd and econornSelmplieations for the existing titla W SO2 cap and trade program, In the sbsenee ofan approach for taking account of tho titlo TV program,a now program [I.&, the CAIRI that Imposes B significant1 tighier cap on SO2

most of thtl sowcas and most o f the SOt missions mvered by title N would likelyresult in a s i g a e a a t axcess in

d h w m c ~ , disruption or operation of the trtle W alInwnnce market and tho W e IV SO: mp mnd trade systm, and ths potentid fotIacreasadS0~ missions. Tha pntsntlal for incmased emksbns would axIst in the enure country for the yaw taforo tho CAIK implamontation dsadllne end would continue niter implomentation for Statas not eovorsd by the C A E Thosa negative impads, particularly those on the operation of !he tftle TV cap and trade systtlrn, would undermine tha affica ofthe trtle rV program and could e,% cnnfidcnco in cap and tmdn programs in gonoral.

Tille N b a s s u c c ~ f u l ~ y radumd smtssioas of SO2 using the cap and t m d B appmaeh. eliminating m i h n s of tons of SO: born the environment and meouraging bP1Ions of dollars af Invmisnments by companies in pollutSoa controls to oaablo the sale ofallowances reflectin nxcass amissinns raductions and in a l J ownm purchases for cnmplianca. In v i m of thasa already achbved raducltons and exislhng investmoats undor title IV, tbs likalibood of disruption of the allowance m8rk8t and tho thlo IV o p and tmdu systm, mnd the potential for SO1 emission Inmasas, it i s necessary ta consider ways to pmerwe tho mvhnmental banefits aehievad uador title W and maintain the Intagdty or the markat for Utle IVallowancos and the title IV cap and mdo systom. The EPA maintains that It is epproprjato tu provida Stalas the opportunity to achiw8 fbs SUI d s s i o n mductIons

emissbns Y or I region encornpawing

tho Supply Of utle Iv dOW;tnC05. ft cdlapso aftha price of t i t la w

Federal RegkkrlVoL 70, No. 91ITbursday, May 12, 20051RuIes nnd Regulations 25241

Fequirod under taday's action by bulldfng on, and avoldhg undermInIng, thIs exIstin ,sUffessful pmgmm, The EPAfas davehped, in the model

SO: cep and irada mle, an B p a & ta build on and coordinate wid the tttle IV SO: p m p m to a n 5 m that the required reductions undar todayls d o n ara achieved while prcsaming tho slficaey oftha title IV program The EPA's approach provides Statas the opportunity to fmposg mom mhgmt control requirements for EGUs' SO. amhsioas then mder title tV through an EPA-administored cap and trada pro- that requkas the us0 of title IV al lowmcs for mmplienca et a ratio of 2 allowances Br ton of missions for d lowmca d o c e k d for 2010 through 2014 and 2,88 ~I l~ ivances arton of omissims fordhwauws aylocated for 2015 or thereafler. [The ro ram also a ~ o w s the us0 of b o n d ' & N nllnwsnces alIncated for years bdore 2010 to be used at B ratio OPI altawaace pr ton ofemissIons.1 Title IV allowances continue i n be h e l y transferabb among SOU^ c o w e d by ihPAcid Rein Program and sourms cowered by fla mode1 Sot cap and hade p r o m under CAIR, Howwar, each title Iv allowance used tn comply with a s~urea's dlowanca-hoItling requirsmant in &a CAR mads1 S a cap and trade p r o w is ramovod from the source's allowancn treekin system amount and cannot be m d ngah Tor compl~ance, &her in tha CAIR m d e l SO2 cap and trado program or tha AcId

State wants to achieve &e So2 s m ~ s i o n s r 8 d u ~ o n s requirad by today's action through mora stringant EGU emission Iimltatinns only but without using t h ~ model cap and trade program. ihnn EPA Is requiring tbat Lhs Slate Include h its SIP B mechmbm fcrr retiring the excess tit?eXV allowances that will result from imposition O F ~ ~ E S R more strin 8nt EGU mquiromonts. In

nmnunt of utle IV albwances equal io the total amount oF titla IV aUowanws allnmtnd to tho units in tho State minus tho amount oftitle IV dowancer; oquivalont to the ~onnage cap set by the Stale on 502 emfsrIons by €GUS, and the Stela can cham what rdiramont mocehanism to USB.

Furthar, as discussed akovo, if a Stato wunts tu meet t l ~ n SO2 amIssfons raductions roquirament in tnday's action through reductions hy both EGUE and non-EGUs, then HFA Is a h mquklng tho Slate's SIP to includa a methanism for ratiring excess tide W alloivances. fn

nllnwances &at must be retired equals

Y::rdE;as discussed aboYB, ffa

this E*S% &B Stato mu6t r 8 h 8n

&at the amout of ufle

the total mount of LItle ZV allowances admhislared by EFA if roquested in a allocated to t h ~ units in the Stata minus State's SIP, to prohibrt smissIons that the amount of title I V Blowamas cnntrlbute SlgnifiCantIy to equivalent IO !he tonnag0 mp set b the nontlttainmmnt. or Inhrfem with Sfab on EGU 502 emJSsIms, and d a maintmnnca, of the PMu NAAQS. State a n choose what retiremsnt Further, P A nom lhat undorsoetIon mechanism to USB.

Findy. LIS di5mssnd RbOvR, ictha Statawants to achfava the SO2 emissions reductlorn requirement In today's actIon through reductions by non-EGUs only, than EPA Is not imposing any mquhment i o TO^ title w aIhwmc8s. 1. Legal Authority for UsIng Titlo IV A l l o m c w k (=AIR Model SO2 Cap and Trade P m g m

Tha EPA maintains fha! It has the autborIty lo approw and admidstflr. Jf r uastad by 8 State in tha SIP s%nitled in responss to today's ac!Ion, tbe naw CAJR madel SO2 cap and tmde

rmhctitiaa requirament in todny's action that requires use of tiUe IV all~~vanees to cornpry with the mora stringent altawanee-hoIdIng requimmant of the

pMglaill m80f& fie sot Omission

- Sot flmissions Is eontmry t6 title N. Most of these wmmenters prefer tks npproech of allowing States to USB a new EPA-adminktared mp and trade program to ma& lawful, dssIon reduction requiremmts undsr t i t la f and ofalhvlng but not requid@ SPUCBS to w e Iltlo W nllowancas in the new program, However, these commenlers argue that title Npmhibits requiring s o u m s to us0 tille Jv sUowanees In such a program, wkether at &B samo tonnage authorf-taton [h., ODB dlowanco per ton of emissions] 8stabkhed in t i t le lV or at a diflomnt tonnage authorization. Other mmmntea state that title IV does not bar EPA from establishing a new cap and bad0 aromrn that muires the USB

authority under sectinn ~~o[e][z] (D] and title IV to ssteblish a now cap and tmde program raquirhg !h0 use of title IV allowanm et a difFmnt tonnage autborizatian than uadar the AcId Rain Program and the rdrernent of such dlnwanees for purposes of both programs. First, BS &cussed in SEC~IOII V above. EPA has lha suthorft under

SO2 a p and trade program, section IIO(~)[Z)D) to astablis L a n0w

25292 FQderal RegisterlVol. 70, No. WThwsday, May 12, 2005/RdES and Regulations

final revisions to 40 CFR g73.35 adopled In today's action. Momover, rha CAR modal SO, mp and trade rule coordinates the dsmnIna~ons-madn by EPA forsowces subject to both tltlo IV and tho CATR-nf compliance with t h e title lV and CAR dhmncdmlding mqulrements so that such detminatfons am made in a multi-stop, end4-ycar procuss of comparing allowanw held and emissions. Firs!, EFA datamines wheUrar the soutce holds suficiunt tido IV allowances to wrnply wilh the nna-alIowance-par.~on- ok~missions requkarnant in th0 A d d Rain Program as pmvldd in 973.35; and subscqumtly EPA dotermines whethor tho sourco bo!& the addftlonal ijils Wdlawnnces that, whan added to those hold for Acid Rain Prngram wmpiiance, arasufficiont IO m a t !ha CAN allowance-holding requiremsnt. Xolalions of the Add Rain allowance- holding requiremen[ will resdt in 1rnpnr;ltion oftha penalty for exm5s emissions lie., the onirdowance olfsst plusszpaa Cinflation-adjusled) per ton of excess emissions] undor CAA section 411 and §§73.35td] and 77.4, See h i e l §SS.2Wbl(l] adoptod In today's action. Thus, the Add Rain allowanw-huldlng azqulrcmsnt continues as a s q m t o mquhmant and rartocts thn one- nllowanc~psrton.of4missions authorlzo6oa undar section 402[3].130 in contrast with tho ane.allowance-

pnr-ton-af-amksians requiromanlunder the Acid Rain Program, &a W R SO2 rap and trado proggmmrequircs ea& s~urw genamlly to hdd 2 or 286 Acid RafnaIlowanecs for mch tun of SO, amissions, Contrary 10 tho commetlters' claim, thts W allawanco-holding roqulrsment is not barred by tho dafinIti on oftbe term"dlowanw" in scctian 402(3). W h h sect€on402(31 dOrllEs t h n tom "d1DWBILW" as a l l aulhorization to emit onn tan of SOz, this provision qressdy applies &a dalinition to tho tam "[& used In this title IWl" and thcmfom does not apply to the treatment of lith Wallowancos in B differeat program uadera different title of the CAA. Moreover, as n o t d &vel sactim 403M allows EPA to limit (or tdnats) the authorization io d t tha t an allowanca otherwise providas uadctrsection 402(3], ConsequsntIy, the allowanca dormfth in seetIcn402(3) dwas not bar &a treatmmt of a titlo IV

I*"fbammmrml~'l'artwlon~lulchexnueerin aStntPlntMdwr not p a d te In the U R S Q

R a b ~ p a ! d ~ n d n p ~ f s b m r m d ~ I b f ~ e n . Su& BHIW wilt rxurlnua to be rubiut to ibo altaxan~boliihg rcqulrommt d t h o rrrm Uum p- h S 5 md WflI not b subid b $e dIawu&zatUon rernrhmsni md tho mmalimca

mp a n d h a p n g m J € L a r f h m *Add

albwaaco as nuthizing lms than one ton nf SO2 omissions under the CAIR SOX cap and bade pmgmm aslabllshad undor title 1-140

Onca a iitlo N aIIowaacr! is used to meal thn morn slringont alIowencr 1ioIdIng mqyimmeat in the CAIR So2 pmgmm, that ahwanen is dductod from tho sollrca's allowanco tracking systom account and c a n o f bn used again, a l h r In &e CAM SO2 program or tho Acid Rdn Pmgcam. As notad ahavo, EPA has tho authority undw spcllon 403M to require thi5 tomhation ofnch a tItlci IV ~ I D w ~ ~ w ' s tnnnngo authorimtron forpurposas oftbe Acid

In addition to rofcmcing section 4032(3) to support claims thot EFA is b m d frPm adopting tho CMR made1 mp and trade program provisions on tho usu olttlIe IV alhwancos. tlre wmmenters rdy on 0th title IV provisions thnt they eharaclnriza as setling a 'We IV cap" on SO2 e&sione, Stating that tlio requimmmt to USP titla SV alIowancas in the CAB modd SO2 mp and trada progmm bas tha effod oireducbg &e ''Utle W ca .I' theso cornmentars indimto, with l i t t i axplanation, &at such raquircrnmt is unlawful. In manffoning Lho title N cap, the commontors are apparently mforrhng to Ule fact t h a t section 403(a1(1] {requiring allowanco d10c;ih~ mlhg In emIssfonc not excaedhg 8.90 mIIUan tons of SUJ and seetion 405(aj(3) [mquiring addltional d10~tl0ns 0150,[10u allowanccs) mquh EPA to allomto nnnudy, s t d n g in 201th a t o t f amount of allawances aufhorizlng no mom h a 8.95 million tons afSO1 missjons. Tho mmmentm' argumont about haw the CAIR modal SO2 mp a d tndn program effeclivdyrreduces Ihe "1Itle N cap" appcaFs to bo that elimination of the ability to use, h rho Add RainPrognm, Lith IV allowancas that will be used for compUanco in th CAIR modd 502 cop and tradp pro- has the effect of roducing the annual 8,95 million ton a on SOX emissions. ThIs elfeclIve rJuclian o f ~ e " t i ~ e JV cap'' s e w occur when Utla Iv allowances am usad in t h ~ CAIR S a baading program with a reduead tonnage authorization so b a t mam title W allowanws am doducted par ton of amIssions than would be daduetcd far complianco with the Acid

Ruin Program.

25294 Fedcrd RegisierIVd. 70, No. 9lf Thursday, May 12, 2005lRules and Rcgulations

is bemuso, w'ih the irapuslt~on of the mom stringent CnTR SO2 omission limitolion in the CAIR SO1 region, fhis mom slriqant l imihtian bacornos tho binding Iim€tation for sources in that mgfon. These CAIRSO~sotucas must cornply \vi&, and mnnot USB title lV nllnwmces to exceud, the C A R S 0 2 amjssian limitation. Consquontly, &o poriioa oftha tide Nallowances that cquds tho diffnmnw belweon tho CAIR and tho title IV pmissinn IhUatrons i s excess and wo9d bo availnbln for us0 only by Add Rain sowas !hat ato outside the CAiR SO1 region. This oxcess amount o f titla IV

allowmeas is potmUally very signiliunt.Today'sactIon requires tha t tho Siotos in tho CAIR S& regton achiovo on nmaunt oiS& emIrsion mductioas in 2010 and 2015 qual to 513 percent nnd 65 parcant, rospectively, of tho amount of tille IV allowances [about 7.3 mlilion allowances out of the tole1 nntionivida sllontion O € ~ S rniIlbh allowances) allowmd to the units in tho

all tho wquhcd CATRS&nrduetians though emfssIon rsducllons by €GUS [which u-e hq0ly iha same units that am subiect to rhe Add Rain Program] and if EGUs hald Dnly one Utlo IV O~~OWUICO fur each ton d S 0 ~ e d s s h s BS required h the Acid Rain Pmgmm,

allocated tu tha States in Ihe CAIR S a re ion wauldbn about 3.65 million d f o ~ m c e s md4.75 million allowances, respodvdy in 2010 and 2 Q 1 5 2 ~ ~ Moraaver, the vast maiority of EGUs nalionwib [about 90 percant] and OF EGU SO, smIssIons natianwida (about DO porcont) am c o v m d b y ths CAIR SO2 program Tho net reslllt would be a lnrge surpIus of titlo N allowanem that would not ba usable in the CAIR S a region and would be watrlo only by the smahubsat ofEGUs (about 10 percent) Socated in aon4AlR SDZ region Siates. Looking at tbs nation as a wholo (balh CAEand non-CAtR !%States) in 2010, t h m would bB tdd d0CathnS In !ho Acid Rain Program 01 a,% miluon title IV aIIawanms but, according to EPA madding and analysis of rho CAIR without arsquhrnent to ratire surpIus titla N dlowancBs, tad projected SO2 ~misStons for EGUs af only about 4.8 m l l h n tons,"S Basedon th principlos

ChIR sol TOgiOn. If &I3 SkilE5 nchiW8

mount orsurplus a i o w ~ ~ s

aisuppl and dnmand, BPA condudw &ai. w i X he amount of allowances allomled nation wide exceedhg SUI emissions for EGUs nationwide €n 2010 by about 86 percant [tal 8.95 million nllorvmccs minus 4.8 m€llion tons dluided by 4.8 rnilllon tons), &a valua of 11tle IV alIowaacw would fa11 to zero, and all hut 260,OtlO opthe surpIus dlawances wouId havo no markat and so, as a practld matter, w d d not bo h-ansfonbla

The EFA notes that this efTect on alIwwaneEs would occur na matter how tha State impbments he more stringent SO2 emission limitation requiredunder t h ~ CAE, e&, whether implementation is through anew ~ a p and trada program O i h in the model ruhl or thmugh a fucod [command and conkol) Ionnap srnbion limit irnposad on on& fndividuaI SOUPCB. Consequently, the alternatives faced by EPA 8rB aIther: (11 To establish a m modo1 cnp and trade program [ar allow Stnm to use mmthermtrins of achieving C U SO2 srnissions reduetiam) that doos not rotire the 3,65 million surplus allowances and that rnsults in tho davduatian of all title iV allormces to zero and the effeecllva nomtranslerabdity ofall but zGo,ano oltba 3.65 milban surplus alIowanm in 2010; or, BS provided in today's fiction, I21 to adopt a CAR SO, modal cap and trada propm [or anohor means of achhfavhg reduetlons) that r d r e s tho 3.65 million surplus allowances and that results in the nun-traasforabilily of tho antire 3.65 million surplus of litla IV allowances and emtms the remainimg, unused titla W allowme~s hava mmket vaIua Thus, with mgard to the impact an thn tmsfonbility of title IV allowancs, =A's d e d s h to adopt tha second dtarnative ofrotking tho surplus ~ O W ~ ~ C S S adveKdy 8ff8Cb tho transforability of only a relativdy small amount (260,000 out of 8.95 millian pat year] otdlowances, as compared to tho ammint ofallowancas whw tteasferability would be sdve~ety a5ectad under tha h t alternative.

Morewar, with the total mllapsn o€ tha titfo W albwaaea prica in tbs Acid Rsln Program, the nationwida mp and trada sysrorn under tilTe IV-which would he the binding cap and trade system only for sources in the States

lase e f f i a q . The tith cap and h d e sys!om opmtas br: Making owners Orsources pay for tho alrtbarizatron to emlt SOZ by

outsIda tho CATK S O t ~ e g i o i t - ~ o ~ I d

surtondoring, to !ZPA, allowanms thnt lrave R market value; and by olIowing OWII~FS (e&, thoso who chnasn I o reduce emissions] 10 sell unus~d allowancas. molhec !hD SOUCCB~' allatvanc~s wom arigJndly nlIocrtad to tha sourm or WBPB purchasad. the uwnm must declde tbu oxtent ;a which it Is mom cfiiciont to givp up the markot d u o of such allowances or IO rcduco nmhions. If l it lo lV ellowuncos worn to hnva no mnrkot vnlua. tho titlo IV u p and tmdo sysbrn would no longer d e e t tbs choics of whstlsr to emtt or to raduce mnissims."~

The EPA maintains !hat such a m l t is contrary to Congwsiarwl Intnnt. Tho p r p o s ~ ~ oftitle nr Include not only Toducttons of annud SO1 amissions

emoumgemant nf "enurgy consmation, us0 of renewable and dean allomativo technologies. and pollulfon prawnlion as a long-range strategy, consflent rvltli tho provisions of !hk title. for mdueirrg air pdlutlon and other adverse impacts uf energy production nnd use." 42 U.S.C, 7851fi1. Raflscting these purposes, Congress requSred EPA to pmmulgata allowance system regulations €or thn Acid Iioh Prosram that would promote "an ordcrly and compatrLTve fundonlng oftlln ~ I D W ~ C O syslam." 42 U.S.C. 7653btd)tl). Sm Sen, Rep. No. 101-228.

1st Sess. at 320 lexplaiaing lolsL that "&a a lmvanco syslem is intended to maximize the mnemic oificiancy or the program bo& to minfmlzo cask and to Croat0 hcontivos far agpssiva and Innovative sffnrls to control pollution"). As dicussud abovo, if title N dowances wero to have no market value, tho eap and mdn syslam undar title Ev would na longcr fleet ownom' decisions on whether to omit m to control emissions andso would no Ion~er provide meauragemeat hg.,

hl l l19Bo h V d S . hut Oh0 thR

25296 Federal RcgistcrlVoI, 70, No. 93 /Thursday, May 12, 2005 /Rules and Regulations

State may chooso wltat meehanfsm io hndudn in its SIP reuislon for achieving the required allowance ratiromant, and EPA will mview the ofhoetlvenass ofthe mechanism in a&oving such retiroment. and appmvo and adopt h a merhanfsm I f appropriate, in an EPA rulemaking mncurning the SIP ravision. Therafors. EPA madudes that the aIIowanc*rntirarnent requirement is Iawful and Is a masonable condition for EPA approval of hose Stnlo SIPS that require EGU SO2 mission reductions without using the CAIR model SO2 trading progrim.

ThaEPA nates flint UIU Fequimrnant !o rntim excuss tItle IV aIIowancos-wban a SLata adopts the CAIR modo1 SQz trading program or whrm B State SIP obtains EGU omissions reduetions tllrough s o m ofher m e a m i s reflocted in provflons in both &E proposed mlns in the SNPR [i.is, in proposed §Ss1.124(p) and as.zsqb]l and in thr? final rubs tldoppted by today's action lie., in final § s ! i ~ ~ % [ p ) and 9~254b)), In reviewing Lho proposed d e s in light orthn comments ramivad, EPA has concludod that for conststoncy nnd clarily. tho Add Rain Progrm regIdatiom &odd also refemnce this samn rstirement mquhment. Consequenll today's adan adds u new paragraph [a&] to 573.35 of tho Acid Rain Pmgnm reEdations that miterates h a r uircmont-addramd In tho prsa%s and wgdaltons in both the SNPRand today's action--that title 1V albwan~:es pmviondy U S R ~ to meet tho allowanc~boIdtogreq~menlin h a CAIR modd mding p m p m in § 96254b1 or otharwiso mured in accordance with B51.124@] m n o t be used to meat the aDawaaw-holding requirnmant in the Add Rain Program. AddMona1 ravkinns of fhs Add Rain Program rogdatlons are discussed hdow. 3. h v i s i o a s to Add Rain Regulations In !ha SNPR, EPA proposed to mise

thn Acid Rafn P r a m ~egulations, offcetivQJuly I, 2005, ta implament &a alIowance&olding rquirement on a sourco-hy-somu, ruthor than o n a unit- byunlt, basis, Instead o t a uirhg a ~ c h

its AIinwanm + ' h a n g Syst Bm aocount [as of tho alIowanm ttansfer deadline) at least oqual to the tonnage of Sol omissions for &a unit in Lhe pmc~ding ealondar ymr, tho proposal zequircd each smrm to hold an amount of alIowanees in its Allowam Tracking Sysbm accoltnt a t lcast equal to t h ~ tonnnp of SO2 omissbns for all affected units ut tho s o w far such calendar

n i t to hold an amount of a l Iowances in

approach i s includcd in many pmvislons of tho Acid Rain Program reguhtions, a significant number or proposedrule rovishns were necessary tu ImpIernenl sourca.by-so~ce aUowance holding.

In tohy's final rule, P A is adopting, wilh minor modifications, tho prapnsnd m10 mvisinns implementing souree-by- snure0 compliance wilh tha allowanm hnl&g requitemant. As oxplaind fa &tad in the SNPR (69 FR 32G!l& 321011, EFA finds that: TItlc IV is arnbiguuous with regard to whather udt- by-unlt wmpliance Is rquired and sa EPA has dismtion in this maltor; It is imporfant to provido addilinnal cornplianw Spxibility b allawing il

my other unit at thesama source: and many o h r , nort.iillowance~hnldng pmvisions af title IV svidonco a unit-by. unit arientatIon, Further, as discussed in the SNPR, EPA mnchda that Lha adoption o faomdaud mmpI1anm reasonably baIancos thoso cnnsidmtions. labalancing thoso considodom, EPA also eoncludos that company-levaI complianco IS not nppropriato becau5s itmprosmts too much oln daviation fmm tho unlt-by- unit odentatIon in the non-nfluowance- holding prmbions of tltle IV and is IiMy to requim much mom hrnatic changes in the operation oFtbe Acid RdnPmg~am. Scc 69 FR 3269S700. It is important to nub that tho fiml rule x a v i s i o ~ . like the roposedmvisions, chnng only &o al%wanco-holdiig

unit at a saurce t o usti B Y Iowaacw

mquiiemunt and not the emissions mrmitodng and reporhg requhmmb, which conltnue to be applied unit by unit In today's action, =Ais making tha

source4webcornpIianw ~ I B revisions affective July I, zoo6,which is 1 year larcrthnn proposed, The shin from wIt- lwol tn saum-love1 wmpliance wlll require- softwara changesand tnsung tu onsure that the Allowance Traeking System oporates propdy. Currently, EFA is in tho proms of conducting a general roviaw and ro-onglnemSng ol tho ASlowanca Tracking Systam and EmBsIans Tracking System and antidpates completing the proass in 2006. The prncess of shifting tba Allowance Tracking S stem to sourca-

alficiant and lass likely to havo advorsa rwults on t h ~ systom if the shiR Ir; coordinated with the gena& review and re-mglneedng and thomlora implemented starting July 1,2006. Further, as dimssad bdow, this delay of implcmantatron lor 1 additional year WjIl duo owners addiffonal time to

lavcl campIimce will i: 0 much mora

necessary in order lo adapt to snurce- lave1 compliancr?.

Some cornrnenters support the shin to sourco-bysourn aIlowancB holding, and some oppose Ihs change. One wmmenter o posing tho c h g o claims

holding mquiromant is"ccmtrary to rnarket-based pdnci ?as." According to

gho opamtors the tools for mhiaving complImw through allowanca tnnsfors. but wftli sDurce-lavd mmplinnet! tLe opomloa do not haw to rake any action to maintain sullicicnt allowncos bocauso EPA will move the allawanm around Cor thorn. T h commantnr's argumont is basod

on an inwrroet premise. Whatbur complranco is wit-by-unit or source-bp sourca, the D W ~ W or owners of Uie dactod mils at each soum must lake &e sm~ ty es of actlons in ordor to wmply wit% tho applieabh dIowance- holding requimmonr. In partinhar, uador somelevel comptiance. such owner or DWIIOK rnmt I U ~ U C R omissions, mbin allowances aliomtod to suchunfts, obtain additiona1 allowanc~~, or take a mmbination oi these acuons to ensura that tho A~~~wanCaTnckiig System account for tha s o w holds onough allowancos lo covertho total omissions of thu acc led unils at tho sourca Tha owner or owners aIso haw h a option olmduchg omissions below a l h e a h s so that h e r o aro wtrp allowances avdIable to hold for fiitura llsa m salt!. If tlte owner orowners do nathnvo omugh allowances to cover the emissions from thn source, EPA will not maw, on its own initiative, dlowancos into the source's mmplfanw accounr h m nthor sources' acwunts or from grind accounts, nvon If them sxba allowancas in the olhar accounts. Tho only diffomnm batween tbe types of tletions owners mnst Iake undsr ths Unit-Iwd and source-lave1 sp raachas is h t , under unit-level mmp~aace. tho awnm must tFansferalIowanws from one unit at 8 sourn to II soeond urJt.at h a t source in odor to use the first unit's albwnnccs for complimee by tho second unit while, undecsourco-lev01 complimm, any allowaaca hold for complianco for the first unit can ba used-withnut B transfar-for CDmphlm by the Second Unit. mS dlfforsncn is mflcctcd in tho AUowanca Trackin8 System, which, under tho d t - lovd approach, includes a sepmta account for aach unit and, under tho s~urce-love1 B pmach, indudas asingle account For a1 P the affectadunits a1 a

that a mum- e y-snurca alIowonw-

the wmmontas mar E, t-based systems

siDglIe sourc~. hsurnmnry, ibha mechanism, md tho

Fadoral Re,&terfVol. 70, No. sllThursday, May '12, 20I151Rules and Regulations 25297

but tho Inability olany unit to use at ro complinnco (with !lie m l t that 200t Is dlowances hold instend by another unit the first yoar of sourc~.lovol - at tho source, Consoquenntly. rather than complianco), EPA is pmviding owners a adopting ia the Addwn Pmwm tho reaswnable amount of time to mako my

compIlanco rvIlh tho allowanca-holding mguiroments BW analogousunder unit- by-unit nnd sourco-by.source Fomplianm. exxcopt that, under source- by-sourcn compl ia~e , allowancw aecd not be tmnslorred among wits at tho S a m 8 source. Tho EPA doos not boliavn khat the smm-hy-snnm np roach is

unit np roach. O w n m will d1 have the ab& to mduca emissions ur purchaso or sol1 allowances and the rqonslbflity to tako actions [bdudbg h a hotdIng of o m aUowanms] to a m m thoy have mmgh allowanas to cover omissions. Moreover, tim markat- prico ofalhan#rs d l strII play a cructnl rob in ownfirs' deckinns on what actions to take. The EPA's adoption of xluxce-bysource compliancu preserves market-bascd prfnciplus, whih roasonabIy balm ting afthaambiguity ortitlo SV. tho need for additional complIanca fI&bDity, and tho unit-byanit orientation of many provision5 fa till0 lv, see 69 FR 32699- 700. Ths cummanlor a h atguas that

having a sourco-levo1 dnwance-holdl- requirement in tho Acid Rain Pmgram [and the GAIR madol mp and bade prngraml is incunslstontwith unit-h~d eornpllanm in the NOx SIP Cnll cap and trada progmm. Howev~r, other than pnitlhg out Lis d i f f p r p ~ i ~ ~ , t h ~ commenter fails to axplain why L a prosrams must be i d e n h l In this regard. Basad an oxperienee with the Acid Rain Program [as wall as h a NOx SIP Call tradmg program), P A concludes thata sowce-~ov8l ahvance- holding requtrsrnent wi11 resull in a somowhat BE complicated pro- nnd areduced liblihaad of inadvariont. minorsrmrs, WhiID achiavhg thn

any loss marhbbasod thpn fI e unit-by-

program's environmentdl gods, Sce 69 FR 32699-700, Tho ~~mmnntorauggests that, instend

of edopihg some-loud EompIiance, EPA miss the Acid R h Progmm regulations ta albw for solum over- draft accclllflts, l i e i h a allawad in tho NOX SIP call cpp and hada program. Llndor the N& SIP Call program, each s n u r c ~ may hnve a s o w e over-draft m o u n t , in which may bB held o x h allowances that may be usedror ccmplfaneo hy any &dad unit at the

soume-hvel compliance k a beltar approach than unibbval cnmplIance with overdraft accounts, Relativdy Few o m a ~ in tho No, SF Call mp and h d o program n c h d y put alhanees in ovor-draft accounts, and adhiwemsnt of complinnca is made more mmpllcatedby the n b i t y ofall units at a soutca to draw on the mor-dmR aceaunt [ifany 11nwanccs ilw put in It1

KOUTCO. HPWaver,EPA bWhVPs that

unit-lavd approach with ww-dnft accounts, EPA i s today adopting the souredeve1 approach in Iha Acid Rain Program and may considar ln tha h t u n as a prupriuto, odnphg &e SUWCI- 1evePopprnah in ather promms wing

On0 cornmanter states that EPA should mviso t h ~ Acid Bain Program ragulatims to allow ownars, each year. tho o tiou of dtoosh~g whcthor to UIU unit- P eve1 orsource-level complianca According to the comrnonter. signifiwnt investments have baan ma& lo monitor and report emissions and surmndsr a l I w m c e under the existing Add Rain Program regulations, and shifhg to sDuurce4aveI mmplianco will require substantial ~ e s a w s and timu Tho commenter also states l h t unit-basod complimm should be retained BS an option "to accommodate jofnt ownorship and orharspadal nrraagnrnents that maynotaffoctan a n t h facility.''

The EPA rejoEts tha suggestion of nllowing each owner the option, For meh yew a d Tor each SOUTCO, of choosingbotwaon unit-leuel and soupce- levdcomplIance. Such an apprunch would dgnifimnrly complicata the achiovsrnent ~ ~ S ~ U F C E S , and tho dotominadon by EPA, of mmplianw, The potantial far m a r [e.g., dua to BF~O~EOU assumplions about whnther unit-or source-hve1 wrnplianw would ba app1idle to 8 ~mlarsOurca for a particularyoar) on the part ofowners or EPA wouldbs significantly inmasad. Mmovor, rhL complbtad apprnach wouIdsasnlt in inconskhnt haahlent from SOU= In sOUrmsd year-to-year. Furthnr, tho commentpr pmxlded only vague assertions a€tnuL tho benefits ofunit-basad mrnpliance in certain c i m m s ~ a n c ~ s and did not assert-much Iese show-that 5aum- lave1 compliance cannot be accommodated under those cimmtances, The EPA maintains that the only reasonable aptians for !he dowancc*halding requimmont in tha Acid Rsin Prugmm are olthur g e m d y roquhrbg compliance by all SOU~CBS each year on a unit-level bask (as in the Misting reguIntinns1 or requiring cnmpUanm by all mumas aa& par on asourea-levd basts [as in the pmposed revisions to the regulations). For the masons discussed above, EPA haluves that source-level cnmplianen fortha alIowanctrholding requiroment is prdwable. By postponing until Jury 1, 2006 the olfeetrve date of tho rule revisions sh1ftIng to source-lave1

Wlil*lavel compIiaanco.

n.ecess;ITy adjustments, such as those claimed by tho commontar. Furlher. as natod above. LhDrule mvisfons changa only the allomnca-holding rcquiremmt and mt tho mfssions monitoring and rsporting requhments.Thb should limit he scopn of adiustmonts necassary fur orvners IO Implement sourco-levo1 complianm and will prosowfi the availabIllty ofmliablo, unit-level emissions data.

Bealuso unit-low1 complianca is mflecled throughout tho Add Rain Pmgram regulatims, numomus revisions oftlie replalions am necessary to implament suure~lavcl compIianca. Wonn ofthuso changes are to theemissions monitariag and reporting provisions in part 75 sbw monitoring and mporting continue to bo on a unB bask,) Ono cammentar rcqumttad that EPAprovlda "more in- deplh dotail" on tho pmposcd rovin'ons. Hnwavor, In lho SNPR. EPA dwcrihd tha lypcs OF, and reasons- for, revisions that are necessary for snurca4avol compliance (69 FR 3270a-01) and set lo& dl 01 tho s p a c i k roposod changes (69 FR 3273-41f. Momover, no cornmentars s t a t d that tksy dSd not understand any spec% proposed rovision ar tho masun far any specific revision, Tho EPA anlcs that in roviswing the roposed Acid Rain d e

foud somo additional rafomnces in !he Acid Rain mlu to unit-levd mmphnca tbatshould bo rwisod to roflcct sourcu- level complIanco. In lodeyls action, EPA is adapting revisions of these addilloaal reforoncos [e.g., dhanging r d e r a n c ~ to B "unit's account" or a "unit account" to E some's "compliance aceoltnt"] h a t am onalogaus to ih rovIsions spacifically idonand in &n SNPR150

revisions implementing s o w d a v a l compliancn on_swaral other pnnnds. Tho commsnbr claims, without dLIng any slaatutory support, that tho Add Rain progmm 3s based OR "contml of dss ions at he unit IBVB~" $0 that, in the event of ex- emIssiolls, the "source BS a whaln would not bo punishad" md"c~mctiva action could take placa" at tho particular unit. According to the mrnmenter. s o w - level complianco will: Mak8 i t harder to deturmim whichunit wusad ~ X C ~ S S emissions; make tho existing Acidkin

revisims in lig % t of &a commonfs, EPA

Anolhar commontcr oppnsed !hn rdo

1

7P8 25298 FcderaS RegisbrlVd, 70, No. 91 /Thursday, May 12, 2005 /Rules and Rogulatians

pormlk meanhgless: mnke the individual unit allowance allocations meaningless; and uuse confusion nver wbich units at 8 SOUTM am dlecled units.

WkIe thoro am many non-allowance- holding provisions in fitlo N h a t hnvo a unit-by-unit orimlatlon, EPA disapos with the commenler's besic assertion that tho purpose ofthe Acid Rain Program is IO control embstons on B unit-by-unit basis and that thorn is a need to ''distinguish" &he complianco of each Indlwjdual unit Tho provisions concerning applfcalion of tho allowjnco-holdhg re uiromant aro ambiguous as to wheker EPA must implement the requltornent on a unit- level or a sourco-leve1, and tho onvhtanrnental bonefits of the Acid Rain Pmgmrn wilI sal bo rcnliznd with saurmlovel complfanca. Sec 69 FR 32699-700. Furlhor, w u a EPA will delermlno complianm on n source-by- sourco basis, notbin6 in the mguhtlons pmveols ownors (e.g., owners of units at sources with rnultiplo units and multiple owners or OWIIQ~S of units with mdtiplo owners and whausiing through a common slack) born dalormining by agmoment which ownors will bear any ~ X C O S S emissions

enalties thnt occur at the plnnt and Lve to !&e corredion actions, Indeod, own of^ m likely to already have thosa types of agrcemunts In mas of udls or SDU~COS with rnulOple owners.This is hecaw8 the Acid Rnin P q p m xoplatlons already allow a unIt at a multi-unit source to usa some allowances h m other units at tho sourca Wbait tu cover most but not all of the poteotfal excoss omissions) and already allow one unit exhausting from a common stack to use al~o~vancas Imm anolher unit at that stack (wihout any limitation an such uso). See40 CFR 7315(b)[3) and (a). In addition, whilo the Acid Rain permits will havo to he

level cornplianco, today's rule does not make sourceleva1 corn l i a n a effcdivo until 2006. Pormits r v i f n o t have to ba mvfsed until around the end of2006, whfch should provida States a masonablo opportunity to mend the permits. Contrary to c b ~ d a h s of the w mmentor, source-level compliance does not make tho unit-by-unit dlocalIons meanSnglcss; t h o udt-by- unit allocalions (sot forth in Table 2 of 572.101 will datotmfne tho amount o i allocations reflected in ~ach Allowance Tracking System soutcf) ecwunt, which amount will qua l h e s u n of the allocations for all affccted UnlLs at the sourca Finally, the cornmenlor fallod ta explain how the sourcu-Ievsl nllowanco-

mvrsod in !ha future to t o f l e c l s o u ~

balding xequimmant wuld uuse "confusion" nvm which units am affechd units. This sourcednvol rqUh-8rnent doos not change tho applicability pmvIsfons, whkhare still applied unit by unit.

As d h m n d in the SNPA. P A proposud-in addition IO the nth revisions to implement sourco-bvd cornpliane-ther ravIsIons ofthrt Acid Rain Program roguIalIons in order to fadlftatfl wnrdinalfon d t h b Acid Rain Pra m and tho (=AIR 5 4 eap and tm~&gmm T h w addtlIonal mvjsions wara described and explained In the SNPR (E9 FR 32701). The EPA Is adopttry thwa mvbions for the reasons in the SNPR, as amplified below. Most cf those revisions ars supported, or no1 opposed. by cammantars. but snmn comrnenters objected to certain ravbions. For examplo, EPA noted fiat it had

reecnUy changed tho "agmeration unit" definition in 572.2 in June 2002 [G7 FR403g4.4U4ZO; June 12.2OMJ. The origLna1 dnfinitkn in §722 had been used since the arrnmsnwmunt of the Add Kah Program. The ody slgnilicpnt dI€fcrenco between tho original and revised dafinilkns is that tho former mfers to P unit "huving the Equipment usod to produco" a l e d d t y and useful thcrmal ensrgy thmugh sequentialuse of onargy, whfh t h o latior simply relers to B unit "that produces" electricity and useluI thermal mew in that maimer. Tha rmon lhett EFAgavn formwttng rh9 &finitinn in jum 2002 was to confmm wlth tho dnEinItion In the SectIon 126 ntk. Hawover, ihhe Section 126 rule (and the NOx SIP call) did not actually spPciFy a "coganeration uaW' definition, consequently, them is no mason lo use the luna ZUOZrevIsed dshition. Moreover, ITA is concerned that !ha change- in tba definition of "cognnomtran unit" as of luna 2002 may causo confusion or d s a ~ U E S ~ ~ Q U about what units qualify for Bxemphns for "copenmtinn units" from thb Acid Rdn Prugram. Under ~ ~ E Z S B cirmmstaaeasr E M concludes that ths definition should be chnngad back ta the original dofiaition in 572.2 and, in any avant. intends to intsrprat the June 2002 revisad dnfinitfon as having tho sama meanfng BS f i n original dDfinItran, 0110 comentwmised concerns that EPA did nat provide any "debiled malysis" of the i m p l i d m s of&anghtg the "cogonoration unit' dsfInitIoa, Howevar, as discussed above, t h o ch'ange simpIy rt?instatw the definition thnt hod bwn wod in kho Acid Rain Program b m thu Jnitid pmmdga~on olimplemanting rogulatians in 1993 until 2002. No commnterassothd tliat

revorling to the longstanding, original dafiniticn wwld bo dbrupiiva

hothar Acid Rain Progmm ruIu rovidon proposad in the- SNPR is tho dirninaiion of tbe roquimmonl for ownors andoparators to submit an annual wmplienm certification roport for each LOUTCO. O m commanter expressed concern. hecause tho purposo af ths annual cortifimtion i s to ~usure that tho designated mpresantativo is "aware and has Bssurad tha quaIity of the d W ' being subrnIttcd to EPA. Nowavor. a6 notad in the SNPR, dtsipated reprsentativcs must ovidenm such awaremss and mmplianm by submit-, wlth oach quarbrly amissians mpm. a csdification that the monitoring and ruparting rqttIrements undnr port 75 of tho Add R&t PrOgam teguIatIonr h8va h o n mnt. See40 CFR 75,641~). Quatterly omissions mports am ewilabh on-line to Qio publicand the Statns. h addltiun, ownars and operatnts oFsoums subject to tho Acid Rain P r o p m must submit, undor titlo V uf i h ~ C M , annual complianca mtMmtion r o p m conmrnlng all C M requirements (including Acid b i n Program requirsmonts). Undor these c lrr;wtanw, EPA maintains tho; tho scpnmlo Acid R a h Program annual corn liancp Eertificatron reports am dup?iatIvo and ~lnnncessary, The EPA nobs that It appears that fow, ifany, roquosls for capfes of theso Acid Rnin Prngtam roports bava berm made by Slatas or any othar pnsaas s h e the eommmcomont oSths Acid Rain Pmgram. Apparently, other ctrrtlfications and submisslorn r e q u i d orownors and operators havo bcon suficicnt for the purposes cited by tho commenler.

The SNpffdso ineludad proposed revIsians olimhnthg the requlremnt undortbn AeidRnim Program Tor a 1-day newspaper n o b for designation of dasignatad mpmsenhtiva and authorizad nceounf mpmsentattves. One cummantor sllggosts ha t his noltm should bB roplaced by a FequIrernent to n d f y &e Shta parmittingauthodty. Tho EPA notcs that i n h n a t i o n on dasignnted rcpresentathes and aulhorizod account mpmsentativps is

d ~ o r i l i o s through Dn-IIne BGCBSS to tho Allorvane0 Tracking Sysb~n, Moreover, EPA is in the prncess a€ developing, and addpates aiabli5hmg in &e noar fum, the abltrty to sond Stdo ponnittjng authosIBes [et uldr rcquost] on-linn notices of Ehangas in designnabd reprmntativas (whom RISO the authnrizad amount mpresentalives for afbaod sources' accounts].

8 h d y 8VdRbb to St8kl pPdtt ing

F c d e d RcgistcrlVd. 70, No. gIIThursday, May 12, ZOOSIRules and Regulations 25299

Other proposed Acid Rnin Program mIn revisions on which EPA recoived advsrse comment a8 tbo rernova? of 973.32 (prescribing tho wntanls af an allowance- accauntl and 5 7331 (pmhjbiting tha lranshr afallowances fmm a future year subaccount to a subaccount for an earlier y~arl. Section 73.32 sets forth aratharsakvided IIst of information that must be racordod in a~~allowaum amount in tha hllowanco Tmcking Systum. such as the name of tho authorized account representntivn, the porsrras topresented by the autbnrized amount rnprosonlahvp, and the banders olaltowanms in and PUI of the account. This sectfon a150 rehmnces information on compliance or curmnl yaw subaccounts and fulum y m subaccounts. as wdl ps omIssbns information. As dismssnd in tho SNPR, soVera1 Items an the- list of idornational contants for allowance accounts are out- ofdata in that b y do not roflect how the deckode Allowanca Tracking Systam oporatas or will opsmle In tho near future. For examph ale dsctronic Allnwaaw Tracking System duos not cuncnily USE or rafarto subaccounts, which will conunue 10 be umeecssq

cornpliance.lEl See 69 i% 32700-01. In addition, while §73J2 stntcs that emfssl~ns data am relilcdad In the AIlownw Traehg System account, rmch dntn nro nurently auatlable instsnd thmugh fhs electronic Emissions Tracking Systom. Bemuss &s Inlormation list in 573.32 contains oitharsdf-wident items or Itams thal me uut-of-data and because the NOx Allowanco TacYing Systam has bean opersting sueccsshrIIy won though tho model NOX Budgat cap md tradcl nrIa and Stab cap and bade mlos undw thn NOx SIP CalI lack a provision adogous to §73,32, EPA is removing § 73.32. EPA notes that &a mmoval of the sediun will nut moan that the lnfonnatim Eontained In allowancs amunts ”can ho changed at wiH,”Tho famat for allowance amounts is sot forth in the eI8clronic Allowanco Tmeking System and implomnnts tho mquiraomants in the Acid Rain Program rcgulstions

in the COZStmxt OfSOU~-lflVd

conecrning the holding, Iraasloming, rawding. and dedueting olallownacas.

Section 73.51 pmbibrts tbe rran~lat of allowancos from a future year subaccount to a subaccount For nn owllor year. Tho remavnl of lbbf S ~ M is consistont wilh the eliilnallon throughout the rest ofthe Acid Rain Program rcguladons. as discussed in the SNPR (id.), oImy references to such subaccaunls. Fuhor. tho rohibItion on using alIowancas alloealc f for a yonr to mcnt Lhe allowanea.hddlng ra uiramenf for a prior y o x i s retainad in a%w pmvisims of the AcId Rain Progtam roguhtions. Consoquently, P A is remuving §73,51. c. How Dms Ihe Rds Infamct With the Regional Huzc P m g m 7 This section discussas tho

relationship of the WTR cap and tmdo r o g m b r EGUs wilh tho rogional

~ B Z O program underseclIoas 169A and 1IjgB nlthe CAn, in parilcular tho toquiremenu far Bast Available Retrofit Tachnology (BART] rorcertain source categories including EGUs. The IcgiaIalive and regulatory background af the BART mvklons WBCB prasaatad in somh dataIIfintheSNPIt [spa 69 FR 3~684,32702-704, June 10,20114). In bdof, BART reflattons caaskd of two components. The first. promulgated in 1980, addresses visibiliiy impairment h t mn be “reasonably altrihutod” to a singla soutco or small p u p of sources. I45 FR 80085: December 2,1980. codified at 40 CFR 51,302). The sacond component addressss BART in rdation to regional haze (visibility impairment caused by a multilude of broadly dtstrrbutad sources) and was promulgntud as part ol the Regianal Ham Rule. [64 FR 35724; July 1,lQ9D], Main park of tho BAXT pmvisions in that rul~wcm vacated by the US. Court oEAppeals for tha PC Circuit in hericon Corn Growers et al. V- EFA, 291 F.3d I D C Cir,, 2 ~ 2 ) . To eddress tbat dedslon, In May 2004, EPA proposed changes to the Regbml H ~ Z O Hula and reproposed tho Guiddinas for BART Determinations loriginally proposed in 2001) (69 FR 25185, May 5, 2004). On Fobruary 18,2005, tho DC Clmit

decided another case dealing with BART and a BART alternative progmm, Centerfor Energy and Economic Dewtpmenl v. EPA, No. 03-1222, Dc Cir. Feb. 18,2005) [“CED”). In US cam, rho court glanted n petition challenging provisions of tho ragtonal ham rule governing the opLional emissions trading p m g m for certain w M w n States and Tdba Itbe “WRAP -ex Rule”). The holdinns or the case

am relevant to today’s action in swan1 respecls.

Most impwtantly €or purposes oF the CAN, CBEDnffirmod BPA’s inlerprefalion of CAA l6!lA@l[zl as allowing for nond3ARTaltmnativcs whern thosa alternatives makagreatw progress than BART. (CEED, slip. op. at 13) IfindIng that EPA‘s inlorpratation of CAA 169[al{Z) as raquithg BART only as nmssaFy to make reasonable progruss passos rho two*prnngad Chevron tost).

Tho particular provMom involvcd In CEiGD applied, on sin optional. basis, only to ninnwestern Statas *52 (nom or whidr am in tho CAIK rogion) and tho Tribos th~min.Tha pravkions. wntahed In 40 CFR 51.309 (“saction 3m”I requirod among other !hlngs that States choashg to padeipatn in o “baekslop”153 cap and trade program m u s ~ darnonstrata that tho amissinns reductions under tha pro mrn resulted

visibility go& &an would BART. At issun was tho particular rnethoddagy required for this demouswition, SpadGdy, W A S mlu required that visibility improvommts undar sourc~o. specific BAkT-&n bonehmark for cornparkon to tho cp atld mdo

the application of BART contrals la d l snurm subied lo BART.754 Although A m e n h n Cum Gm wers had mant~d this cumulative visibility appmach in thn w n t a t of detsrmining BART for Individual sources, EPA beliavod !hat 1L WBS stil l armissitrle to roquh this methodokgy In thu conlmt of a BART- alttsmativa ptogma The DC k u i t h GEED held otherwise, stollng: “EPA cannot under 5309 requh statos b excoed invalid emission roductittns [or, fo put it mom m d y , l h i t thorn to a 9309 ahrnative dafincd by an unlawful methndnlogy).“ (ld. at 141,

Thus, GEED f i d y ostnblhhod two prhciples: [l) The CAA auows sl8ts to substitutu othor pmgmms for BART whoru t h ~ altarnativo achiuvesgraater proms, and [Z] EPA may not mquim States to emluale visibility impravamant on a cumulative bask as a eonditlnn for approval O ~ P BART- altarnativa Tbe Erst pdndplo vandates EPA’s proposal to allow the CAlR to substitute for BART. Tbo second

in greatarprogress t o m f 5 the national

program--must bn m 7 culatcd h o d on

3 m n n . WifaKlh. Gptnudn. 0~~ win. EJaPada, flew Mdm, Ulah. and Wyoming.

% a & o p ~ h u m u d u r t k a W ” ~ m , S b ~ bweIhanppofidni?fnleMpmlpcdlldsmlalrtl d ~ t ~ B U S h g VD MkT t U m . dth&8 m d i n g ~ r n ~ h b & onlyllbso d f i e s f P ~ ~ m t C c d

8SrTba m&odolp~y b p d o d h 4 0 m 5-08h]((fl a a d m r a t e d 53s by d - a ~ o C F E ~ staos[tl.

~ ~ n o m ~ ~ b r r l t r r c d r o ~ a

7 1 n 2530D Federal RegisterlVol. 70, No. 9i/Thursday, May 12, Ztl05/Rulcs and Regulations

princlplo is nalnt Issue in h a CAIR contexb boeause EPA 15 not pmposlng ta imposo the cumulativo visibility motbudalugy u Stales to treat E C A R 11s having satisfied thnk BART obli ations.

It Is pramatum to maka a h n l determinatim regding the sufliciaaey ofthe CAR as e BART ~Itornatlvo, prirnnrllybemm [I) tho guidelines €or sour~speclflc BAKT dotn+natlons. in rmponso lo AmenSmn Corn G m r w have nat h e n finalized, and (2) &ere is now a mod to r e v h tbo Rcginnnl Ham Rulo and tha guidolhes far BART- albmativo pmgtams in resp~nso to CED. The s o ~ c ~ p e c t f i c BART gx1ddim.s will be Iinaliied on or boFore Aprllls , 2005, under a consant dema, Tho rulo cbmgos and revisions to cho BART-altumativu guidelines will be pm O S Q ~ sum thereahor.

TKmroro, we am making no final dotominadon in loday's action with rasped to BART. Tho EPA ccntinunslo bdIovo, howevsr, that tho C A R will m l t In &rflPfor progress in visfbility improuamnt t.hm BART, as q l e k e d holow. 3.IJorvDoesThTsRuloR~lateto RequIroments for BART Undor the Visibility Provisions of the C M ? L Supplemental Nolica of Proposed Rulomaking

which adopt &E CAR cap and trade prngmm for SOz and NOX wauld be d o w e d to bent the participation of E U s fa this proprn as a SubstItute for tho appliution of BART contmfs far &=e pdubntt; to affected EGUs.lS5 To givn this opption dFcet, we mposed an amondmsnt to tho ~qiona7Haztl ~ u ~ o which would add II saetinn at 40 CFR 51.3O8(e]{3lO as follows:

Ctcpn Air hkrslato Kula wp and badu pmgrartl under part 98 M-EER n o d wt rquim d c d c d BNtT.eUgltr10 EGUr tn Install, opernb. and maintain BART. A Slntn that ch005es &S uption may also Include- pmvisbns for u gcograpbk cllhnnmmant to tho prngram to ad- tho~oqulremeat underg5itd02[cl mlatdta BART far rcasnnabIystMbumldc Imp&uml h r n &e pnllutnnls cawed by fEro W cap and trade Pgram.

Thispropod is wnsistont with m n t l y existtag provisions which allow stat= to d w d ~ p a p and trade pmgmm nr other dternntim measures

II States, nor 10 requiro

ESm~e~huI~ss, EPA hm harminad that

la Lhe SNPR, wo proposed that States

(3) hSt8!Q tbnt Opk to plddpnte in t h R

in lieu af the qpplfdion af BART on a source specific bads. fSea 40 CFR SlSPS(e)[Z) and 84 FR 35714.35741- 35743, J U ~ Y 1,1999). The pmpasal i n s b w d on thn appIication d t h ~ proposed hwpronged tmt for wbother

3ART"which was proposed In the 2001 BARTguidalines and mpropowd without chaqes in our May, 2004 proposed guidnUlles for BART dotadnations (69 FR 25184. Mny 5, 2004).

Guidolinas provide f h n t ICthcl gnogmphic distributIoon of omissions reductions is anticipated tabe similar underboth programs, the tnding p m p m lor olher diernatrva rnaasure) must ba shownto achiwn greater ove~all odssloas raductions than t h ~

&a tnding rogram is antidpatadto result in a %Enrent gcographie distribution oEmisAons raduaions than would sourcn-speicific BART, the madlng program mud be shown to msdt in no decline In visibihy at any CIass I mea, and in an averall fmprovament In visibility on an avera o basis over all aEoctd class I aroas6jGg 25184. 25231). Bocallse we bad notget dqtedned whnthar them i s a d i f i m c e in the ge~gm hIc dIslributlonuf missions re~uctioas between the CAfR and the application ofsmaqeci f ic BARTin the CAllE region, WB assassad ths diEarento botween the two p m p s by evaluating tho vislbitity impacts of each program, using this pm used two-proaged tast.

T!.B emksssions projections andnir uality moddingusod to demonsimte

%at the CAIR satisfies this proposed two-pronged tost were presented in a datumant ontitled Su plamsntal Air 9ua1ity Modsling ToEgoJ~al Support Document (ED] for tho C?om Atr InterstaleRul~ M a y 4,20041, In brief, we found k t tho CAIR would not rmlt in a dogradatim of visibility &om curront conditions at any Class Z Ama nelionwlde. Wi&n the CAIR-affcctnd SEI& and New England, BPA found that the CAR would produce greabr visibility bondits-spedfically, an average improvoment aEao decivlows. as compared tu I,O for BART. Tho EPA dso found that nvemp visibility hmprnvamnnt for CIas5 1 areas nationwida would be 0.7 daciviews undor tha C A R cornparad to 0.4 dociviews under3ART. Tha EFA notod In the SNPR on4 the T5D that basuse the ~missiaas scenarios used in fhae analyses wra davoloped lor difforent

an aItel7l8UV8 IO BART '%Otter than

SpeCifiidy. thnm-pmpD6od BART

npplidhn O ~ S P I U C ~ . S P E ~ ~ ~ C BART. If

t l W O S O ! L tba SCenPriOS V8d8dSlfdltb

10 conduct additinnnl andyscs, and thosa aodyses haw now been dona.Thn new modeling and results am discussed In mora detail In section M.C.2 below, b. Cnmmsnls and EPA's Responsns

Sevcmt commontars arguad k i t a mtagorkal exdusion of sourcus fiam BARTwould vIdala tha CAA, as intwprated by &a US. C o w ofnppeals for tho DC Circuit In Amerieon Corn Gmrvm V. P A , 291 F.3d 1.2002, by illcplly constmining the discrotion Cnngmss eonferrndto States In making BART do!nrmInatrons and by deprhing Statas ofan adeqtMta opportunity to evaluate rhe misstons redudions in light ofthe BfdEraquirernent. Somo Statosako oxprassed o desire tu retain their dtscrotion to requim BART. Add3Uondly, snma commontors wcrted that EPA a u l d not offw an axcmption to BhRT unlcss tbs conditions for oxomptlons provided by CAA lGSA[c) are- met, hchdIng B showing thnt ha source in q u d o n wlll not, dono or ia combinntion with othor saurces, amit my polhtant which may reamnabty be anticipated to cattso or contributp ID impairment at any CIoss Z arm, ond tho eoncurmncn otthn approprlata Fodcral Land Managar wilh the uxamption deteminathn.

Thb EPA agrees &hat undor the CAR lind the Ame&m Corn Gmwers casu, EPA may not precIuds a Stab from emducting its own BART andysis, nor €rum requiring BART cualrols ar individunl soums as dotomhad appropriate though such and 515. Accordingly, 8s noted tlbavo, d o pmposed mguldory diange to the Regional Nwa Ruh would pmvidu thnt a CAIR affectad State"nned not r q u h alfected DART-digIbb EGUs to Install, opfrato, and mdJnWn BART" if such State opts to participate in the CAE mp and bade program. Tho optional naturo oft& language ("need not" rather than "may not") i s consistent with tho Amorimn Corn Gmwersdedsioa, bcmuso it dries not attampt i a mandata that Statcs must mPnsldor tho CMRos having met the requhamenls of BART.

The SNPRprttamblo 5umrnarIzed tho pmposal by stating thst "EPA pmpasos thnt BART-dli@bb~ EGUs fn any Stato afieclad by CATR may be oxernptnd fiam BAFXmntrols forSQandNOx ifthnt

requirements h u g 1 1 adoptlm oF&u

and NOx omissioa" (69 FR 32701, That statmaant aeeuratdy mflected the optimal nahue of t h ~ bottmthnn-BART substitution poBcy, by providing that sources "mav" be manted such

5htB amprias 16th tho u m C A Z R ~ ~ ma b a a pgam rot soz

Fcderzlr RegisterlVol. 70, No. ollThusday, May 12, 20051Rulcs and Rcgulatiuns 25301

was somewhat Impraciso. EPA agrees b a t sources may not be "exempt" h r n 3ART mquirernents unlusss tho rcqlriroments ollBSAfc] are fulfillnd. Tho bottcr-than-BART policy is not an "oxnmption" fiom BART; 11 Is an allemotive regulatory program that would d o w Congmsionolly requhd omissions radudions from BAKT- eligible sourc~s to bo made in I MOM cost-offactive mannor. Moroovw, as oxplainad elsewhera In tho SNPR nnd again bolaw, BART-eIigibIs EGUs wouId not ho "oxcmpt" from BARTbcmuso, until tho cm*ssions reduclfons r e q u i d by tha CAIR aro fully reaalizad, such sources would remain subject lo ths possibiIity of boiug required to install BART wnttds if danmcd nncessaty to meet rcqujromnnts mgarding r u n a b l y attributable vistbSlity impaimant, as providod by40 CFR 51.302

Several ammentorsasserted &at beeauso Congress singIad out 20 L;ource mtcgorios for I ~ P appIication of PART, there is no hsls in law Tor EPA to "oxxampt" s ~ m s of thoso mtogorias. Thwsn comments amoltnt to facial challenges of EPA's authority to approve Sips which contain altmntiva stralfigies, mthw than sourco~spccifie BART requiromants, for BART-digiblo sources.

The EFA's authority b appmvo a h n a t i v e muasures to BmT, where thoso measuws achhvn p a t o r masonable progross than would BART, WBS m n t l y uphold by tho DC Circuit, (CEED, sup. op. at 131, SOB also Central Arixono Wnler Consemation District v. EPA, 090 F.2d 1531,2543, (1993) (Upholdiag mil's IntcrpralaUon of CAA IE!AfiI[Zlas providing dismtim tu adapt ImplementatIan lan provisions othw than t h s e provi&d by BART analym in sibations whwu the agency reasonably concludes that more masnaablo pmgresswill ?limby be attained).

Similarly, soma comenhrs shted t h a t the C A R wuid nat substitute far BART bccausa f h ~ CAIR and 3ART authorized by sepmte parts of tho CAn. T h y argrta that allowing raductions ro uimI by a provision of the CAA not d h d to visibility improvement fn substitutu far BARTwould a?tor Congas' "rnandaW that certain S O ~ M categodns makornducCions for visibiLity in excess of what 0th CAA provisions require- of fhose s o u r c o s f ~ ~ Cnmmenters 8 h pdnt to KqIonaI Woza Rule sadon 3M{e](2), aS evidence t h d r8dUetiDn8 from othnr pmgnms such as trtla IV and

tha NOx SP call must be nchinved in addltion to, and not as 3 substitute far, BART, Commonters also argue that EPA [and Stalesl will nnod all availabie tools. including BART, to mest visibility and NAAQS requiremonk

Again, undor our interpretation of CAn soetion 169A(b](Z) as uphold in all and Ceniml Arizona Water, Congress did not "mandate" that emission reductions &om certain soum mtcgorius be obtainad by the InstalIation of BART controls Inslend. the CAA allows for altomati ve msasurm to BART-whetbor forEGUs or n m - EGUs-where those moamrss rssult in greater raasonablo progrw, and as explained bolow, wa have detarmined that greatormasonab1~ progress a n bo obtained from tho EGU sector !hm& lha usa of the CnIR mp and trade program Howovor, Ira Stato boliovos mom progress can be made at alfeeted Class I mas by utilizing BART, tbo S h b need not make the dakdndfRII that tha CAZR substhtes for BART in that State, Threfom, EPA fs not eliminating any tools available to t h ~ States.

With respect to Reglonal Ham R d o section 308[0][2], EPA does not believe that thI5 sactlon p v i d n s any support for tbn nation that emfssions reductions fmmolherpro~mms mustnocessmily be in ndditim to, not substitute, far BART, We fist note that the deckion in CEED ncEesr;Itatnsrevisiuns lo 3OS[e)[Z), at lo& In the provisions requiring visibility to be evaluated on a m u l a t i v o basis in definhg tho BART bonchmark for cornprison to BART altarnative programs. It romains to be sm n whether 3 0 8 [e] (2) Ifvl, which r e q u b that amissbns reductions kom fhu BART dtarnative be "surplus to raductIons resuIlIng h m mcasuras adopted to ma0t requhments as oftho baselho dato of tho SIP,"wiU ha

~udmngnd, the CAIR wrnpUas with iL Tbe hasdine date oCRrrgionn1 Haze SIPS is 21102,337 Sinm any emissions reduction requirernanls io meet &a CASR would necessarily ba adnpted eftar i!UOZ, CAR-requirad rduaioas would dearly bo surpIua to r n e a s m adopted rs of the baselha yoarJm

&=Edd. E W ~ Ifthat saction ~ m n i a ~

Sewed commcntcrs argmd thet the quaslim of whether BARTis bntlcr than the CAR is proparIy addmsad in tho I3ARTd~11aking, nut in today's action, and that !ha beifor-than-BAIET dotamisa!ion is othenvlse promaturn. While €PA bel i~vcs that our c m n t nndysis demonshtcs that the CAIR is better than BART based on iho criteria In our May 2004 aARTpropusal), and that ths mnge niunesrlainty rcgnrding tho prasumptrva BARTcontrols for EGUS to ba finalized in tho BART guIdelIncs is not likely to nltor that demonstration, wn agrea that we a n n a t make a final datormination that CAR Is better than BARTunliI tho changas to ihe regIona1 ham raguIatJons rcquircd by both American Corn Gmwtrrs and CEED are W e d ,

Several commentam feIt tha CRTR should bu eonsidnred better than BMT for a Stntu whothor ornnt that State parllcipatw in h e CAX cap and h d n program, BS long as the Stab adiinvas its emission reduction raquiroment undar the C A R Conversely, onn wmmenter fdt that CAW toductinns should ba considered bntter fhpn BART od when a State &as not participatn fn cap and irndn program, Lbemby ensurinr! that thn mdudians rvil1 amur in-stat;

Our nrdiiinprv dumomkatlon that tho CAk rasuits :n more misonable progross than BAKT for EGUs is based on n cornpatison af omissions reduetions from EGUs, and attoadant aiF quality affects, under the CAE as cornparod lo under BART a5 ruposed in ~ a y , 2004, Ifemissions A c t i o n s me achIaved horn athersom sectom, a similar analysis would hnva to bn conduded for L ~ O S B sactorIs) hdora it could bn delerminad that tho redudions war0 bnttar than BART for dhcted source categories, For exampln. if n State

mductions under the substitutu for BART fornon-EGUs, otum non4GU smi5sinns raducffons to substit~to Far BART for EGWs, that muId bo allowed as an altornative mmura to BART pmvidcd n s i m i h "hettar-than-DnRT" datermination 5s mado fortha seaow invdvo d.

A fow cornmantars bdieved EFA &odd not l h i t the substitution oftho CAR rOcBmT to ShatRS that= required to m o t CAIR for bnth SOz and NOx on an annual basis, but rnthor shwldalao allow it f u r S ~ e s which am anly raquirad to xoduw NOx during tho om10 S O ~ S Q ~ , 3 m U 0 tho madaliag swnarIos warn bamd on tho pdlutmts

by mt b o b d o w a d In mmtfhma EDPlribullng to raajonabla progrms t w i l d s tho M t I d VirlbUIW d

8ithW Wants to use EGU e m 1 S S l O E

25302 Federal RegislerlVoI. 70, No. SlIThursday, May 12, ZOOSlRules and Regulations

covered by the CAR in cach affectod Slnta, our betler-than-BART demansfmtion is limited to those sconnpiiDs. A Stah subject to lhhp for NOx putposas onIywouId bave to mako a sup lomenkty demnnskilIon that BART !os bann saffsficd Tor SOr, as well as forNOx on nn onnual bask.

A fow tornrnentDs bdbved that &a CAIR shouldsatisFy BART forpurpwes ofmsonably at Hbutablo vislbiIity i m p a h e n t ns wdl as BART for purposos ofregional haze. Snworal ohass c m a n t a d that it was appropriate or legally nncessary to prosowe rho nuttiority of Fadm1 land Managars ( F M ) snd Slabs Io mrtlry impairmmt und ma!a reasonabb attrihutbn d~termhatinns, which wuld SubJect a s o m ~ to BART raquhemonls wen if the s o w e is a partIclpant in the CAIK o p and Ira& pmgram Them wrnmenters supparlad the use ofa sfrategy slmlIar to tha t smploy0d by tho lastem Regional Air Partaarship, which m h s upon P Marnorandurn 01 Understanding [MOU) bnhvean tho F N s and tho States mgrding ih~t ai tada by whkh certIfieplions of impairment may ba rnada, along wlkh tho po5slbIIity 0l"geogtaphie anhanwments" to tho mp and trade program to mommodate tho impwition af sourcwpadfic BART contra1 requ$remants ana sourco within &a o p and h d ~ program,

As proposed ia lhn SNPR, EPA continues to believe that rensonahly attributable- visibihty impairment doterrninattomundor 40 CFR 51.302 must continue ta be aviablo option in order to insum a g a h t any possibility of hotepts. Wo boUeve that P wrtifieatian of reasonably atlributable visibility impairment is &My UnlikOIy, givan that there haw bemfew such eerfifidoas slaw 1980, mdgivnn t h t the reductions k m the CAIR mnd othor ramnt hnftiatives WIlI make such mfificatIons d~aeasingly likely- We bdlieva so- a n be givensuEicIent regtllaiory cprtnInty to e ~ b l ~ i efhclive parttcipatian In a cap md h d a p r q p m h u s h thn use of MDUs and geographic enhnncornent provhions,

Soms mmmsntsrs beIbvo that bemusassdon 169A(b)[Z)(A) Equkes BART for an slfgibla SO^ which may masonobly be enticipatod lo muso or contributa to MY impairment of visiMIity in any Class I aten. EFA i s without basis in law or mguIatItm to bas0 a betler-tEtan-BART dalsrmination on an analysis that does not evaluate visibility impmvemont at each and cry Qass i m a . or one that USM av-g of viSibiIity hnprovemant across dlferont Class I mas.

Tho critm'a wo applied in o w prmat analysis-that gmator reasonablo p m 5 m Is defined IS no degradation at any Class I area, and greater overall a v m p improvement-havs not bmn f inal izd HOWBVB~, wa disagreo with ~ m m e a t s that 169A(b1(21'srequir~rn~nl of BART for 50UxECs raasonably anticipated to contribute to impairmcnt at any CInss I area 150 means that an nltornativu to the BART program must bn shown to m a t s hprovamont at ~ a c h and every Class I area. Even if a BART altarnative is daemad to saiiSry BART farroginml haze purposes, based on awomge OPOMII hpmvomant as opposod to improvement at oach and svery Class Z h a , 169A(b][Z)'s tr&or for BART based on h p h m a n t at any Class I mea remains in elfect. bfimusn II source may ~ Q C O ~ B sublea to BART hased on "rC3sonabIy attdbuleblo visibrlily Impairment" at an m ma BPA boliwves it f u d h l y data State or FLM will have ncad lo certify reasonably aUributabIe visibility impairment (RAW with rcspecl tu any ?ZGU in LR CAIR reglon,but nevartheloss bdisvns it i s nsccwry to prasante this safoguardl,

We &a raeatvedanwnbcr of comments regardhg tha broader tolationship bctwesa thn CAIR and regiand haze, includhg whathar tho CAR maots reasonablo progress reqdrernents, 8s wall BS DART, for affectedStates: whether EFA should dlow non-CAIR States to opt in to tho CAE cap and tmdaproam to meet thoir BART rrqukernnnls: and whctthw regional haze provMonsshould ha usod as a basis for expanding the CAE3 rule to the rmt ofthe States which worn not ineludnd on llisbais ofwnfribution to P M y and mune nmaltainment. The P A ' S rasponsns to comments on thcsa broader issuas, which are notgermane to tho issua ofwhathor the =may substitute for BART for aKmeted EGWs, am containod in the RB~~QIISB to Commont Dammeat. c.Taday's Action

As discussod abnvo, EPA has t h ~ authority to appro- SIPS which reLy upoa a o p and tradn progmm as an altarnative to BAKT. However, at this time, we BIO deredng a final d e h d n a t i o n that, in ~ A ' s View, the (=AIR makes peator progress than BART

for I=tUR-afleciod Sbtw unti1 such tlme as tho B A R T g u i d o h ~ for EGUs and i h ~ criteria fart3Amdlornakho programs am linalizcd At that t h o , contingent upon supporling ana1ysi5 and onr find m1as govcming tha manna1 haze program, Eph will mako a find detrrdrwtion as b ruhethcr i h h p

W R ma& greater progress than BART, and can be d i e d ora as an altematlvo measure in liau oTBART. Z What Imprnvsmants Did MIA Make trr tho Bad Versus &a CNR Modolf ng, and What h a the Now Resultsir n. Supplemontd Notlce of Propmad Rulmaking

the SNPR, wo used the I n l ~ p d Planning M d e l (PMI to estImata emissions axpectedaficr implernmtation a la source-spocific BART approaeh and a h r implnmentation oftha CAIR a p and tmda program forEGUs. 1% then usod tbe Regimnl Modeling Systom for Aomsols and Deposltlon W S A D ) alr quality modo1 toproject thovisiblIIty impact nf thnso DM srnIssinns pmdidons for both &B CAIR and tbe nationwide SOI*CO-S aciRe B A W scenarios. Sp~eEcalyy, EPA mluahd the modo1 rEsults for ihn 20 pnrmnt bwt days Ithat is, least visihUt impnimdl and the 20 porerrnt warst at 44 Class I mas ihraughout tho caunhy. Thiieen ofthrtss Class I amas am within States affcdedby the C A R p r o p d . and 31 CIass I amas am oukida thn CAlH region-20 Irr 8 a t n s to lIr0 west of tho Cf& redan, and 2 in New &$laad Statas nortbeast oltha CARregion.

As oxplahed in tho SmR, the "CMR" sconaria modeled was imparfccl for purpasus of this analysis in tEret it assumed SO2 raductians m a nationwide basis (nther than in tho CAlR rqlon d y ) snd assumed NOx reducUons requhmmts In aslightly diflorent gaogtaphie regian than covered by &e proposed CAIR. T ~ R ideal scsnario woddbawue m c t l y represented tha p o p hicsmpn of the

mquirements, and indudad s 0 u - a - spadfic BART cantmIs in BCCW ontsido tho CAIR redon, (mi tarratled scenario has bcen modeled far tho NFR,

For &a bettar-lbBART mal sf5 in

CMlZ SO2 and NOx t J uction

&-explained bnlawl, The SNPR EMSAD modelha

shawedrhat under thc pmposd two- pronged test, CAIR c o n ~ ~ s achtaved equal ar gootor visibility impmvoment than tho applimtion orsource-specific BART tu EGUs notionwide. Tha modeIing predicted that tho CAIR atp and bsdo p m p m will not rasult in degradation uf visibility, w m p d to

71 3 Fedcral RegisterlVol, 70, No, 91/Thursdayl May 12, 2005/Rdis ond RogulnfIons 25303

c

axktlng (3998-20D2) VSsIbIlity conditions, at any af the 44 CInss I proas considerod. It also indlentcd that CAlR srnbtons reductions as modlad produce sipiBcantIygrmtcr visibiiily impmvcmmts than sourcc-spadk BART. Spedfically, for the 15 f i s t e r n Class 1 areas analyzed, the warago visibility improvernunt [on the 20 percent worst days) PxpacIed soIdy us a result af tho CAIR wds 2.0 dedvlows, and haverage depm of Impmvemcnt pmdictod forsourmspedfic BART IWS 1.0 dedviorvs. Similarly, on n natlmal h i s , the visIbfUty modeling showed that For all 44 Class I areas evaluated. the avanga visrbiliiy imptcrvoment, on the 20 percan! wurst days, h 2015 was 0,7 deciviews under tho CAR wp a d bade pmgtarn, but anly 0.4 decivlaws mdor tha source.specilic BART approach, b. Commnnts and EFA ResponsB

Snvtlral C O ~ I U Q T ~ C S S notad that EFA dld not madol the "correct" ~missfons swnsrios ku compare t h ~ CAIR and BART mamls. They suggested thet a modo1 run with tho C A E eontroIs in tba Ewt 8ndBAKF controls in tho West shouldbe corn ared to a modd run

The EPA agrees Ins wa haw atmdy notcd in the SNPR) tbpt tha suggested mtnpPn'5m drnodet runs is a more appropriate comparison of tho CAIRand BART. The SNPR battor-&an-BART nnalyds was limited by tho availability of tho madd results at the time, For tho NFR, we have madeled ndonwido BART for EGUs as propussad In &e May 20w gurdsli~~s and a soparato scenan'o consisting of- reductionsin the W-nfhcted Stales plus RAW- reduetions in ths mrnaIning Statas (axeluding Alnska and Hawaii). Additionally, WD hnve improved tho BART wntrol assumptions (in both scenarios) by itlcreaslng tho number o€ BART4 bln units Indudad. SpeeIficdy. in tho SNPR mdysis, coatxols woro "raquIrod" [i.e., assumed by the modal) for BART-allgMe EGUs grmtar than 250 MW capacity, for both NOxa~d SOa. For today's action, BART controls are assumad for SOt for all BhRT-eliglbh EGU units greater than 100 MW, and NOx contmls for all BART-aligibIe EGU units groatw than 25 M W P O Thb, along Wtth n mu~ew of

with notionwi f P BARTconlrols.

potsntlally BART*eIigiblo EGUs, has oxpanded Ute univeao of units assumed subject 10 BART in the modeling fmm 302 to 491Jal

Several commnntors noted that f i n betbr-than-BART vMbility analysis ody cavered 44 Class I areas and did noradeqmlely addrm vlslbility in all arms of thn country. For tho NFR. W P h a w significantly

mpanded &a number of Cless I m a 5 eovered by the ttnalysts. The NFR and SNPA visibility nnnlysb was limited by the avaiIabIlity Dfobsorvcd data h r n htor-agunq MonStoring of Pmtectpd V h a l Environments (IMPROVE] manitors during tho metaomlugical modebag y ~ l r oflg86.ThQm was cornplate IMPROVE data at 44 IMFROVEsttas whfch ropr~sontd 68 Class I masF AI1 of the regions of tha country [as d e h a d by IMPROVE) WBM roprosented by at luast one5ite, except tbn Northern G m t lakes mgion. For the finas nile, tbe modding hos barn updnted to WB B melsordogical yaw of ZODL ThorsIoxe, tho IMPROVE dab for 2001 was used for !hn NFK bettar-hnn- BART analysis. For 2001, there woro 81 IMPROVEdtes 14th oomploto daWm representing 116 cinss I m a s . Ttte NFR anaIysls accounts for visibility Ebnngps at 80 porwnt of h a active IMPROVE

importantly for today's rulemaking, fho number of Class I areas In h a Enst has beeninmased from 15 la 29 and now mvors all PAPROVEdefined visibillty mgions within tho CAIR-affected States, indudng the Northern GreaLlakos.lM We, LhumfOrel beliwfi tha expanded geographic scope ofCfass Earoas cnvmd is sufficimt for purpoms orthis

In th8 lower 48 St8tQS. MOFn

analysis,

8hfET. -

t Today's Action We haw compared the two mode1

runs (BART nntianwido and BART in the WQSI with h a CAtR in tho Bst) usfng tho pmpased two-pronged bottcr- than-BART tost. Tho results w ~ r e analyzed PI tha 116 Class I areas that Luva cornplate IMPKOVE d a r f or2001 or are represmtad by IMPROVE monilors with campleb datu. Twanty- nine of rho Class 1- ma in the East and 87 am in thn Wost Datnilad modeling mutts for all l l G Chss f areas am contained in the Better-thnn-BART TSO.Im Results apphbln i o thabolter- Lhan-BART proposad two-prongcd test m sumrnarizod below.

Tho updoted vislbihy nnslysis reaffms that utldar tho proposod iwo- pronged tost, CAZR contmls am better than BART for EGUs, Tho modellng predicts that thn (=AIRmp and hade program will not result fn depdatiun orvisib1Ilty on tho 20 pareent bBst or 20 percent worst days cornparod to I ~ D 2015 baseline conditions. nt uny of ihn 136 Class areas considered.1an

With respect to the greatwaverap* i m rovumont pmng, tha madeling in8tcates thnt m~ missions raducUoDs in the East pmdua signihntly giontcrvkibllity imprnvernents titan source-spccific BART. S p a e i f i d ~ , for tha 29 Easbm C b s 1 areas anslyzed, the avorage visibility improvarnoat, on tho 20

. parcent worst day51 ected soleIy 8s B

and BARTapplied In the West is 1.6 dv, 8s compared to the avemga degree of improvemmt predicted for natIanwido sourm-5peclfic BART dIX7 dv. Shilarly, an B national basis, the Visibility modeling showad &at fOP d\

visibility hprovemont, on ihn zo percont worst days, in 2015 w a ~ 0,5 dv under tho CAIR cap and trado prngram in the East and BART in tbp Wrist, but only 0.2 deelviaws under he nallonwide so=-specific BART

resultofLheCAlRn3edinLhtlE3st

1 1 B cfRS5 1 WdUEted. tho 8Wl3gU

imerohsment on fbn best day: compared

714 25304

improvement predicted for nationwida sourcc-Sp~eifieBART af 0.2 dv. On a national bask, tho vklbility modeling showed that f o r d If6 class I amas

Federal RegistcrlVol. 70, No. 91 /Thursday, May 12, 2005 /Rules and Regnlations

evaluated, the averago visibility Improvmuen!, on the 20 percent best days, in 2015 was 0.1 dvundwboth the CAIR ~ a p and tradn program in i h ~ East

8asa Casa (d&wrs)

and DART ln the Wat. and under the nadonwido sourco-speeilic BART approach. Tha resulk am summarkad in tab10 E-I.

TABLE IX-I.-AVERAGE V I S l B l ~ IMPROVLVE" IN 2015 VS. 2015

The m l t s dearly Indimte that the ChlR will achisve greater roasonabh p r q o s s lhan BARTas pro used, m e m d by tho pmpnsedletler-than- 5AKT test, At lhistimo, wa C;UI boresee no cireutlu;hcos undor wfifch BART for EGUs could produrn greator visiitlily Improvemant than tho C A R However, for tho reasons noted in section IXC.r. pbovn, W B am defonlng o find dQtarmhatIon ofwhether the CAR makes graatpt rmsonnble progress than BART until tho BART guidolincs forEGUs and fho criteria far BART- altornativo programs aro linalhd. D. How Will EPA Handle Slat8 Pelitions Under Seetion 12E nf thn CAA?

Scctian 226 allha GAAauthorIzes a downwlnd Stat0 t o potition EPA fur 8 Rndiq that my now [or modilied) or oxis tlng major stat1 onary sourca a r group uf stationary SOWS upwind of the Stale omits nr would emit in violation of h e pmhiiitinn of sadon 1zo[a)M(nl[il beauso their Smiss~cns contributo sigaificantly la nonattahment, 0; Inkfare with mahtananca, of 8 NAAQS in the Stata If EPA makes such a finding, EPA is ou&odznd to dhctly regulate ths affected gomas. SecUon 128 rak. on the- m a stntumy provislon that undcrhs the CAIR In the lmuary 30,2004 CAIR

prnpm1, EPA set forth i t s general vinw of the appmachlt w p a ~ t d lo take in mpondhg to any sadinn 126 petlllon that might bs submittad which relies on assontially Lhe s m a recod as tho C A R That approach i s fbo o m BPA used in addrmsing section 128 petitions that w ~ r e s u b m b d to EPA h 15197 w h h EPA was deudophg tho NOx StF MI IO control amnu m 5 p O h In the NO^ SIP Call d e , we debrmined under section 13OIa)[z)@) that t h e SIP for ea& affected State [ad t h ~ District of Columbial must ba mviscd to diminate

the nmnunt ofomfssions that C O I 2 k a l U k 5 sigllificantly to nortatbinmeat In downwind States The @ m h S i O r M roductlons requiremmt was based on the am ti^ demksions that could bs ohinatad by !ha application olhfghly eost-oEcctiva mnmls on spoeihdsources in lhatStata, In May 1999, shortl after promulgation oftbe NO^ SEp ai, EPA took final action on tha soeLLon 126 petitions (04 FR 28250; May 25,1999).Thn Seaion 126 ac\ion ralicd on ~ssentially the Same record as thn NOX SIP Call. In additinn, we oslablished a section 126 remedy based on th s a m ~ set ofhighly cost-affodvs controls, In the May 1899 Saction 126 Rdo, WE delemined which p~titions had technical merit, but we stopped short of granting tha fmdings for t h o

olitions. Instead, we slated that Lcawa wn hed prom1 ated tho NO^ SIP Cd-a mprt rufn undarsedan 110[al(ZllD)-as long 8s m upwind Stah rarnaIned on hack ta comply with kbakruls, EPA would dsfer making the sectim 126 findings 'Che finding would ba kiggorad at either a€ two future dates Ifspan'fied progmssbad nntbaenrnadobythasetimes.The Section 126 Ruh includeda pravision underwhich h e ntle would be automatically withdrawn for so~~f tos Jn aStste once that Statu submitted and BPA fully approved a SIP that complied witb tho NQx SF Call. (Sco 64 FR 28271-28274; May 25,1999.1 The mason Tor this withdrawal would ba the fact that tho afFectcd State's SIP mvlslon would fulfill tha soction 110[al(2]~) raquhmmts, so that &we would no longar be any basis for the sectIan 12t finding withrmpect to that State. h this mannor, tho NOX SP 1311 and the SeclIon 120 Rules wauld be harmonized I

Under tho CMR proposal, EPA received arrnmnnts regnrding its intended sppmach for acting OD any futura s d o n 126 petitions that might be filed. Many cornmentars pxprcssed support far tho approach that EPAhad

Issues rognrding the timing or ombsions mductions under a nnw section 126 action. Soma pointed out that tho CAR comphnee data would bn lator than the 3 years alsowed for wmplbnco under section 128, Snmo worn wneemad that tho pmp05ad CAIRcompliance data is l a b than many attainmcnt dntas and States may need s d o n 126 petitions in order to get earlierupwInd mductiom h odor tn muat theisattainment datos. Some quesliuned the Itgalbasis for linklng the two rulas. Snvoml mmmsnters a~pressed mnwrn that EPA would be restridng tho usu of or weakeaing iho seclfun 126 provision. A numbor ofwmmonters urgod EPAnot to preiudga any petlttan, but to evaluate mch on its awn morit. Snmo thought that any petitions submiltcd prior io designations orbafom Statas had had tho apporhutity io propare SIPS wauld bo premature and should bn donisd, Othprs sugge5ted tbet CNR might no! solve all &e transport problems and that States would ne& to mtain tha soction 126 io01 to sn& huihcr rdmtions.

Aftor issuing tha CAIRpmpd, EFA received, on March 19,2at14, a scction 126 patitton from North Carolina smMng redudiuns In upwind NOx and S B lor pu~pusns of wdueing PMU and a-hour ozone Ievds in North Camlina. Tho patitionrdics in lago part on tho t e c h I d m w d far the proposed C A R

When wo ~ ~ X I ~ O S B adon on the North Carnlina potition, WP will set forth our view afthe inletaction between 5ECEOU ilo[a][zl[D] and sccl-on 12G. In tbn t propnr;al, WB will taka Into consideration andmspond to the wdon 1Zbrohtd eommonts WB mwivad nn tho CNR. Tho Epll will pravidn a mmmentpariod and opporlunity fora publie hearing on L ~ B spodfics ofthat sffition 126 pmposal. indudIng an op o W t y to mmmont

statutory provbiom, on our view o€ tf: 0 InleractIm o€ the 2

7 ? li Fcdcrd RcgisterlVol. 70, No. r)l/Thursday, May 12, 2005iRules and Regidations 25305

E. Will Suums SubJcct fo CAm Also Be SuhJect tu NE w Saurce Ravicw? Tho EFA did nnt pmpnsa any

pmvisians In tbo CUR refatad to new sourcoreview (NSR). Nonohalcss. we rccctivad S O ~ B mommetits on tho mla~onshlp bolwcon ChIR nad the NSR provisions that may apply to emissions sotmes nlso Impacted by the C A R Many cornmentors indimtod &at if an EGU is nrt afan PA-udrninbtered regiona P cap and mde program for NOx andS03, lhon that EGU should bn exempted from NSR for tho a u m d polkmts. The camenters eilsd Char SUas Icgklaffon BS wntaining provisions aIfeeting NSR for wvered soutc~. In this final ruln. EPA is not addressing ar rovising tha prw~vLions of NSR

It sbwld b~ notad that palIutian wntrol momrcs im lomantcd by EGUs in compliance rv ih %a CAIRma bo di iblo for BR oxomptim undar &B NSR p&im control profact pmvision.rm Thoso provislnns pmvldn an aximplion fmm major NSR for contFoIs such as solectiv~ mhlyticrcductIan FCR] for NOX control and wet s m b h m b r SO2 mntml. providod that certain conditions fdantlhd in tI1a prwlstons am mot. X Statutory and Becutive Order Rm'ews A. ExecuIive Order 12866:Aeguhfor), Phnnhg and Review

51735,Oel~bar4,1993], h e Agoncy must datermino whethcr aredatory actron Is " s i g n i h n t " and hemfare subbct to Office of Managomant a d Budgat (0MB)reviPw and the mquiromonts oftha kmlive Order. Tho M s r defines "significant reylatnry action" as one that Is Iikely l a rosult In a rule that may;

I. Bava an annual ~Euct on the nwnomy d s a o million or mom or advorsoly altcct in P material way tho aronomy, B swtor afthe oconomy, pmduetlvity, cornpotition, job, thn snvlranmentr public health or safety, or Slate, b u l , or Tribal guvomrnents or communitil?5:

2. Cmto a serious inconsistuncy or utErerwtsa ideriera with an action takcn aplanncdb a n o h r a mey;

3. Mateddy artor thntudgetary Im act of mtitlements, gmnts, u s ~ c f e ~ s , or yoan propms or !he rights and obllgatinns of rccipiants asr80E or

4. Raisa novel legal or poliey issues arising wt oElagal mandatcs, the PFasidant's priorities, or the principkis sei fn& in the Executive Order.

Under Exmtiva Odor 12866 (58 FR

'"SW 40 c3R 5 1.1 B [n#t)b] and SI ,163 [d. 40 CFR51d66bH31J md 51JOa~), and40 E R SUl(blI32) nnd SzZlW.

In view O f it5 important policy implidions and potential oRect on tho economy of over$100 million. this actIon has boen judged to be an mnomIally "slgnilieont mylatory nction"w1ttin the meanln oftha bamtrvo Ordor. As a r ~ s u f l , today's a d o n was submittad to OMB For revlow, and EPA has prepared an economic analysis of the rula ontitled " R e p h t o r y Impact Analysis ofthn FinaI dean Air fntotstnta RuIe" [March ZCik51.

1. Inat Econonu'c Analym Were Conducted for the RuIemaklng?

ofhpaets nn publlc wolfare. Thesa Include an analysis ofthe social benellts, social C P S ~ . and not banolits OF t h e regulaiory scenario. The ectlnomic analysos also address issues involving small business impEtS. unfunded mandates [including impacts for TrjLaI govements], envlroamental jwtico, children's hoalth. energy impacts, and roqulromeatr; of the Papenwrk

2. What Aro Lho finrrfifs and Casts of This Rulo? Tho banofit-mst amlysk shows that

substantial net emnomt bnnofits to socfety are fikaly to ba achiavad duo to mduc tions in omissions r m l ting from thk rule. Tho results debiled below show that this rule would bo highly bonefidal to society* with annual ne1 hena5ts @wnoliisless costs] of appmxirnatelyS?'U orStjO.4 bil?ion in 20x0 and $sa5 or 583.2 billion in 2015. 'Ilhasa alternativenot hm&k estimates occur due to diffnring assumptions concerning the social discount rate wcd to Estimnta the annual value ofthe benofits and cmts of tha mla with thn lower estimates rdafing to a discount ratu of 7 parant and the higher ostimatas a &scPunt m t ~ of3 percmnt. A11 amounts ara ranacted in 1999 dollars,

CMlreprescnt ustimates for ths rial CAIR program that includes the CAEK pmmulgated xuls and he c o n m u t pmpusal to include annuel SO2 and NOK e~ntmls for New Jwey and Belaware. Tho modoliig used to provida these estimatus RISE m m D s annual SO2 and NOx cantrols far Arkansas ihnt are not a pari of tha final CAR progmm remilting in a slight avorstatement of tho rqorted benefits and costs.

Tho anal sw wnductedforthis final nth pmvl 2 B SBVEKII important analyses

REdUCtiOII Act (Pm).

Th bonefits and costs reported for iha

Control Scanario Today's nile sots fbah rquirnmank

For States to o h h a t e tb8k GmifiCant

nunattainment of tho omne and PM- NUQS, In o d o r to mdueo thi significant contribution, EPA mquircs that curtain States reducs &air emIssinns of SOz and NO,. The EPA derived the quantities by calculating h a amounl olS4 and NOx emissions thni EPA believe5 a n bo mntrolhd from tho electric power industry in a hiBhly cost- sffedivs mannor. Tho EFA conddemd nll pmmulgatd C U requirements and known Stato actions in tho baselbo used la dovelop tha cslImaCs of bmdits and wsis For this do. For a motu compfeto description of the rducdon KE uirarnants nnd how they were ca ? ntIa!od, s a se&n l V dtoday's ~-~1:emak1~

Albougk States may choose to &bin the emissions reductions from olbor S O U ~ atqorios, for purposes of analyzing the impacts ortho mh, EPA ls assuming tho applImltion oftha controls that if hes idantifid to bo higbly cwt eflectivve on all EGU5 in tho transport rogioa b. Cost Annlysis 3Ild Economic Impacts

For tho affccbd region, ihhe pmjoetod annual privata incremental wsk oftho CAiR to #a power industry am 5L.4 bdlion in 2a10 and $3.6 billinn in 2015. These costs ropresmt tha privnta compljanco wst lo tho eeClrlc gmamting i n d ~ v dmducing ??Ox andS02 emkstons to meet tho caps set forth In the mh. EstImales are In 1999

ragdatian, thiaTpropriato cost mwura is 'social casts."Socid cosls mpressont tha wslfnre cxrsts oFthe n t l B tu society. These C O S k do not consider tmnsler payments (such as taxes) &at am sImpIy rodisixibutions of wealth. Thnsadal wsts of this ruIe am asff mated to be approximately Sl-9 bi lbn in ZDlO and $26 billion h 2015 a s s d n g a 3 potcent discount rate, Theso cusk becorns $2.1 billion in 2010 and $3.1 billion Ln 2015 assuming B 7 percont discount nte.

Owmll, thn impacls of thn CluR nra modest, partrcuIaily in light of t h ~ 1-0 benofits WB ~xpnct. Utimatdy, we b ~ l t ~ o tho industry will pass dong mast of the costs oftha rule ta conmmms, so that &he costs oFtbe rule will la& fell upon t h o w n m m of alectricity. Retail olaetrici~y priccs am pro]ecbcl lo jncrmsa roughly 2.0-27 pmont With the CAIK in the 2010 and 2015 timeframe, and fbaa drop bdow the Z,O percant iacmase lave1 thereafter. Tbe eKe& nf the CfuR ou natud gas prices and the power-seclor ganomtion mix are xalatively small, with o 1.5 pareant or less inaeaa in natural gas nricos DrOh?Cb3dhm 2010 to 2020.

25306 Federal RegistedVol. I D , No. silThursday, May 12, ZOOS/Rules and Regulations

Thaw will ba mn!inuod mltanm on coal-fmd gcnprotfon, that is pmjedod to ramaln a~ roughly 50 pcrcent of taial P1eetridtygenorntd.A rolalively m a l 1 amounl of coal-fimd =pacity, about 5.3 GW (1.7 percent ofall coal-fired capacity and 0.5 pmont of all generating wpadty), Is projected to be uneconomfe b mafntain, For the must parf , theso units are small and Inlrequcntly usnd goaerating units that am dispersed throughout t h o CAIR region. Units projactad to bo uneconomic to mainlain may bo "mothballad," m W d , or kopt in sowice to onsum tmnsmksfnn reIiabllity in corfain park of tho rid Tho EPA's

As dmand p w s in the h t w 8

additionel: cml-fued gencratim is pmjected lo ba built undar thn C A R I\s II r d t , cad production hroIcc~ci ty gmentinn is projected to inmaso from 2003 Invols by about 15 pamnt in 201a and 25 parmat by 2020, and wo Bxpncl asmalt sbik tnwardsgreabr cod pmdudlon In Appalachia md the intorim mal reaions of the counw wlth

anaIysls does not B f dress thesa &ohm.

- tho (=AIR For todav'r; mla, EPA anolvzod the

mts m i n i tho Intagrated Plhning hiodd (IPM], The ?PPM is B d namic

used to examino tho ewnomic impacts of air p d l u t h control pnlkks for SO2 and NOX throughout fin conliguou~ US. farrha u n h power-tem Dacumanlalion for IPM can ba found in the doekot for this rubmaking or at h t t p d f m . e p g o v/airmurkeis/epa- ipm . c Human Health Benefit Andy&

benefits antIdpatnd from thisntln aro presonted in this section. Brinfly, 1h0 andysI6 projects major banofits h m hmplomentatina ofthe mta in 2010 and 2015. As dasmibedtrehw, ibousands of deaths and &orserious hsalth ~ffects would bo pmventod. We am abla to mon~tizo annual benefits of appmximately 573.3 or862,6 billion in 2010 based upon B 3 pnrcont or 7 pnmnt dkmunt rab, respectively) and $1131 billion orSa6.3 biIlinn in 2015 Cbasedupan a d i m n t rate 0€3 srcent or 7 emnt. rospsetivnly, 1999 f o l k ) ,

~ a t ~ e X-I pmnats the rimary admatas of reduced incifiim ofRM- and ozone-dated hmhh sffacts for thg years 2010 and 2015 for the regulaloxy control shaatcgy. InZ015, we esstfmata that PM-related annua1 benolib include appro-toly 17,000 fflwer premahlra fatalities, a470D h~ermses ofcbrodc broadiitls, 22,000 fewer non-fatal heiitt attacks, 10,5(10 fewer hospiklizalions (for mspimtury and cardtovascular

linearprogtammiug model ti nt can be

Our anelysis of !ha health and xvalfaro

&SEWB cornbincd) a d result In s i g n i h n t reductions in days of restridod actlvlty duo LO respiratory rIIn=ss [with an estIrnaie of 9s miilioa fawer cas~sl and approximately 1,7ao,ooo fswcr work-loss days, Wn also estimata substantid health im mvemonts forehildren from

illness, aeuta bronchitis, and asthma altacks,

Ozons heaIth-ralatod bonefits ~ f o nxpccied to occur during &a m n r ozone swson [usunlly ranging from May to Saptombor in the Eastern U.S.), Bund u on modding For 2035, annuel omno- r3aled hoa~th bennfits m axpactad to includa 2,800 fawarhuspitd admisslorn formphtory illnesses, 280 fawsr emeqancy room admissions for asthma, 690,000 hwr days withrostrjetcd nclivity IeveIs, and 510,oao rawer dnys where children EO absont from school dm tu illnrsses,

whilo WB did not includo in our prlmaty bonefits a d y s b mpmta eslirnatm of tha number olprernmro daatbs that would be nvoIdad due to raductIons In ozone I ~ v d s , recent studies suggest a link botwnen &orb term ozone exposurm with premature rnorhlity indopandent of PM exposures. Based upon a xecont report by Thurston and Ita [2001),1fia tho EPA Sciance Advisory Board has recommonded that EPA roovaluato tho ozone mortality Iitoratura forpDssibla incllrsion af ozone mortality in &ha &mats of total benefifls, Mom reconfly, a cnmprehensivo annlysis using data from &B National Morbidity, Mortality and AirPolhlion Study (NMMAPS) f m d a sipifimnt associalion betwoon daily ozum levels aad dally mortaliy rates @dl et aL 2f104).1mTha mdysrS Estimatad a 0.5 parcent herease in daily morlality awci~ted with a 10 ppb increase in ozone, h w d on data btn 95 major uthan m a s . Using a sIrnilar ma nitude Pffect astimato, sensitivity

the CAIRwould result in an addItiona1 500 fewarprematura deaths a w d y duo to roductlons in daily ambient amna conwntratlons. Ths EFAhas sponsored thrro indopendent meta- analyses of the ozonnn mortality epidomiobgy literatwo to infom a detotTninatiPn on induion of

a WThludca, C.D. and K ho. ZoD1.

re B uced upper and lower resphtoty

ana 1 ysis ustimates suggest that in 2015,

"EpIdmIoIpSId SlUdla 0 t a t * OmnQ Expumsaad r/sriaU!f. I. E*pa AndEwhrd Ep3h1td~1114) xBk.zB4.

F. DodnlchI. 2 0 0 5 , " k a a md Madt ly in 95 t?S.Uh&muntltrsfmm 1087ta ZWO."

rrpBoy.htL.h.M~ol~,S,ZFgar.J.Samet,

h d u m Medfml&ndatrOh

important hcaIth impact in the drnary bonefits nnnlyds for futuro rcgufat ions.

Tablo X-2 prasents thn astimated monetnry who ol mduetions in thn incidence of healthand w d f m efleeds. Annunl PM-roltrled and ozonmhtcd haa?th bcncfits eslimatad toho appmxirnatolySi'ir2.~ orSI11.4 b i h n in 2010 (3 percant and 7 porcant discount rate, mpeclivol 1 and 599.3 arS84.5 biIIIon in 2015 percent or 7 p w n t discount ~ I B , r aively). Estfmalod annual visibtlik?nofits in

approximatdy Sl.14 blllim in 2010 and S1.76 bllBon In 2035. AI1 monotized estimata am stahdin 1999S.Thcse aslimatcs account €or growth in ml BOSS domestic product IGDP] pop opiIa botwcon t h ~ present and the ytrars 2010 and 2015. As tho t8bh hdicatas, total banefits a r ~ drivon pdrnarIl by fho reduction In pmmahlro Bhffitios each yaar, that accounts for over 90 pnrcont of total benefits.

monetized net bonafits ror tbn years 2~10 end 2015. Thi5 table a h Indiuics wiff i a 'ID" hsso edditional hmldi and muIranmental bnncfits of the rule thal WB war0 unable tu quantily or rnonctizn. Thus0 offeets am additive to tlia nsdmata of total: benefits. A asling of ! h ~ bonefit ciitugmios that could not be quantifiad or monetized in our bonefit &timat= am provihd in Tnbln X-4. Wa are not abla to as!imatte tho msgnituda nf thcssa uaquantified and unmanntizad bane&

considorabla valun to the publtc [or the PM-mlatod baneRt categories that muId not bu m c n ~ b d . wo believe thesa benefits maybe small rda!iva to rhoso cnptogoriw wa worn able to quantKy and monolize. In contFBsf, EPA baIIeves the rnonetarJI valuo oftho ozone-rolatcd pmrnaturo rnortdity bonefils could ba subsfantiat A s previousIy discussed, wo oslimate that omna mortality bmelits may yield as many as 500 raducad promature rnortditios pat yoar and may htleraaso h a banefits of CAIRby epprolbmatoly 53 hillionannualIy. d. QuanUfied and Monatized Wolrnro Bonofits

Only a subrot efiho expeetod visibility boncfits-thaso for Class I rea as In the southoaitmn U.S. am includad in tho monelary benefits nsiirnms we project far thls d o . Wo beliave the bmnaflts associntad With these nnn-health bensfit Eatogorics am I h I y significant, For exampIo, wo nm &le to quanlifysignlficant visibiltty improvomenfs in Class I areas in !bo Nattheast and Mid~est, bul BFB unable at pwent to placs n moneta vnluo on

southcaslern C Y ass I a m s am

TablaX-3 prasenls the total

IO EPA ~ B I I W C S thtuo is

theso impravnments. Similar r y, we

Ozone-Ftdated end~olnts

13,000 29

6,800 17,000 4,300 %8W

a,t 00,ooo 1

17,m 36

8,700 22.m 5,500

? ! 8 25308 Federal RegisledVol. PO, No. 91 /Thursday, May 12, 20051RulaS and Regulations

TABLE x-2.-ESTIMATED ANNUAL M O N ~ A R Y VALUE OF REDUCTIONS IN INCIDENCE OF HERLTH AND WELFARE EFFENS-Cuntinued

[fnatiwrs uf i S 9 Q S p

1&9 l[ls 356 Z06 3.74 4.77 127 219 543 36.4 19.9

1,780

... ... . _. .1.. lDI.MuI + B 86.300 + B

3. Haw Do the Bonefits Compare lo tha Costs of Thb Final R d d

The ostimatsd annunl private costs to implamant the mhsimaductioa mquirorneats afthnfinal ruls forthe CAtR region arOS236 in 201U and $3.57 bIlIfon in 2015 [lsSSS]. Them casts aro t b ~ u n a 1 inaamontd elccMc generation production cmts that are expncted to occur with the CAIR. Tha EPA uses thew costs as complianw st astimates in devdaping cost- affeuivaness ssthates.

rwlation, Lhe appropriate wst measure is "social costs." Social cosfsreptesent the w d f m costs of the rule to society. Thnse costs da not consider transfer pa costs of a s mla to oshated tobo appmximatdy%l,g bilIion in Z D l O and S2S billion h 2015 assuming a 3

stcsnt &count rate, These costs E emme $2.1 billioniu 2 0 ~ 1 and S.1 biHioa in 2015, if on0 assumes a7

orcant discount rata Thus, tho mt E onefit (soda1 benofits minus wdal cats] oltha ragt.sm Is approximately $71.4 4-3 bilfion orS3D.4 + B billion (3 porcont and7 percmt &count rate, rispeetivdyl aanualry in 2 0 ~ 1 and

In eshefing tbn ast bonefits of

ents [such ps taxes) that a10 simply M r istn'butrons ofwealth. The soc id

398.5 + B billion or 8B3.2 + B billion annually (3 parwnt and 7 p m n t dfrwclunrra@ rospedvely] in ZD15. Implomantation of tL~ru lu is oxpactad to pmuida sociB@ with asubstnatial net gain in soda1 wnlfara based on econodc eEciancy criloriia. The amudizod reg1ond cost af the

CAIR, 85 quantified here, is EPA's best assessment of the cost orimplemen~ng tho CAlR, assuming that States adopt tho model cap and tmds program. T ~ ~ s s cnstsmgemrated born rigorous eccraamicmndalhg olchmges in the powersector due to the CAIRThis typa olaaaIysis ulng IPM bas undeEano poer raviaw and been uphold in Federal courts. T h direct cost includns, but is not limited to, mpital invostmmk in paltution COR~OIS, opeialing mpemsas ortho pollution conbls, hvestmonts in naw generating sourcas, and additional fud mcpondltum.Tho EPA bdiovw that these costs rofiect, 11s clasely a5 possible, the additiond casts of &e CAIR to industry. Tka rolativdy small C05t associated with monitoring emissions, reporting. and recardkeepfng for affoctcd swrc~f isnot inchdad in thase annualized cost ~ ~ t i m t e s , but ?PA has dona 8 separate analysis and ostimeied ihe cost 10 less than %12

mitIion Ism section X B., Papwork Reduction Act). However, thorp may exist cortain costs that P A has no! quantifind In the59 esdmoles. These casts may induds COS& ofhnsitfoniq to b e CNR, such as the casts assodalod with thn raliFement olsmdler or less affin'ent EGUs, employmanl shifts as workers 8.m mtrrlined at tLa sama company otru-employed elsewhom in the umnomy, and cedain rolotivoly small parmilting mstsassodatedtvllh titla XV that now program entranb faea Costs may ba understated sInw an optimization mudel WE- employed &at assumns cost mInImlzation.and the regulated community may ndreaet €n t h ~ same m m o r !a eompIy with tho rules. Although EPA has not quantified these wsts, ths Aguncy bellems that thay axa small compared to tho quantified cuosls of tho prqpm on the powerseetor. The amunlizod cost estimates prcsonted are the bcst and molitaccl~ate based upnn avdilabIe infurmatian. In a separato nndy5is, EFR atjirnatas the indict costs md lmpacts of highar eleclricity prices un the entire economy Iseo Reguletory h p a d Analysis for tha Final Clean AIr Interstab Rulo, Appondix E March 200511m

Evary benefit-eost andyds examhirig Lhn potentid alFocts ofa Jrango in envimnmennal proketton requirsrnents Is lirnItad ta some axtont by data w, limitations in made1 capabililh [such as geographic arverapl, and ilnceriainties in tho undorlyhg sdeniIGc and eeonornfe studis used to contigum &a benefit ond cost mod& Gaps In tho rdentifie Iilemhlre o h n result in h a inability to esthats quantitatiw~i &mgw in i td th and anvimnmentnl ~ f f ~ ~ t s . Gaps in the cmnumh literature oRen resuIt in tho inabiIiiy ta assign ecouomfevaIuos even to those health and oavIromental outcorn= that canbe quantified, While uncartaintios in &e underlying denlificand emnomi- litwaturus [thnt may result in marestimation or underestimallon of bsaofits) rim discusad In deMI In the ecannmic

25310 Federal RegistcrlVoI, 70, No. QllThursday, May 12, 200SIRdes and ReguIntlons P

Impad Analyst far thn Final Clean Air Interstate Rulo Mar& 2005]l. As Tabla X-2 fndbtes , total banofits are driven primarily by tho reduction in pramsturo fatdilfos sa& year. flaboratmg an the

revinus unmtainty discussion, somo L y assump~ions undorlyiying ttle rimq estimate forthe prernatm rnorla E ty eat0 D Includa tho following

(If E% assumes inhaIaunn of fino pxticlus is causally assndntad with prematura death at concentrations near l h s a expnrhccd by most Americans on B dairy bask Plaun'bIn bIoIogiFaf mochanlsms for this oract bawe been

othwiznd for tho mdpoints ""t inc uded ln the primfiry analysis and !he weight of rho nvdabla opldamtologid widenee supports an asm Won of causdIt

resardIe.ss afthair chemtcaI compusitfoa, am qually potent in musing pramaturn rnortdity. This is an important asSumpUon, beeauso tho pmportkn of certaia components In the PM mixture pmduad vIa prcnu~or~ omItled brn EGUs may mor siignlIieantly from dlroct PM FeInased from aukmotive snginos and d m r industrial sources. but na clear sdmtificgrounds d s r for supporting difforonlhl &E& d m a t a s by particla

ff na particles is ap mxirnaldy linaor within the range ofarnbiant wneantratIons under consideration. In tho PM Critnrla D O C ~ I R I B ~ ~ , EFA reeognlzas that fur individuals and specific health responses thoro m likoly threshold lerok, butthorn remains Iitflo addeuce of thresholds forPM-relatad affects in poppulations.17~ Whom pdontial threshold lavds hove been sugpted, they as at fdrly low ISV& with inacreadng uncortainty ubout elfeels at Iorvar snds of tha P M u EonceatmtIon m6eS. Thus8 EPA astimates Includa health beanfits from reducing tha h e parlicles in areas with varied ~ ~ n C 8 n h u O n S af PM, indudins both regions that am in attainment with fine particle sbndard a d t h m ~ &tit do not mast tho standmd. The EPA rmngdztls thn diSfIeullias, assumptions, and hheront uncartainties in tha overall antarprise. Thn analyses upon wbIcb !he CAIR is based WOM selceted horn the pear-reviawed scientific bratum. Wa usadupto-dab wessmont tonls, and wu believve !he msults are highly usaful in assessing fhis IUIQ.

(2) &* BSSUmDS d l Zno pnrticlos.

"f7jm =Sum85 the c-R function fot

Thore ma a numb of health and environmmtai affects that WB wera unable to qwnttfy or monotIzo. A cornploto benefitas! anaIysis ofthe C A R quires cmslderaiion of all benefits nnd costs axpected to rcsuh from the rule. not just ~ O S R benefits and costs which could ba 9 ressedhsra is

Fategorias that were not quantified or moaetiurd In our estimate me pravidd In Table X-LThcse affects B ~ B denoted by%'' hTable X-3 above, and nm additive to the &mates of benefits. 4. Whet hro the Unquantified and Unmonutized Bonufits aftha CMR E m k s i a a s ~ d ~ c ~ ~ n s ?

health and wdfara banefib rewlting Fmm roductIons In ambient Iavals of F M u and ozono m EX set& to occur

amisdons reductions8 and indirectly &ugh reduciions in ca-pollutmls such as mercury. Thesn banests am ljsled in Tsble X4. Soma of tho more hpariant exampl~~ induda: Rndudions in NO^ ancis01 omissions requirad by tho CAE will reduce acidiflaionand, in tho cam ofNOx, srrtrophication of waterbddies. Reduwd nitrate contamination a l d F i g watw is another possible bonofitof th8 I&. Thk final ruh id11 also reduce acid and pnrtieulnta do o s lon ibat causo

a q soiling and otherrnatctials damEgk Tu i h t r a t e th0 impomnt nahua of

banefit mtegorh we are m n t l y unablo io monetitize. WB dkcuss two degorins olpublic w e l b and anuisomental Impacts Anted to redudom In omksiolls Tequimd by the C A R Reduced acid dopositiun and reduced eutrophication afwater bodfes. a. What Are tlm Bnne6ts afRedfleed Depnsiuoon o€Sulfurand Nitrogen i o Aquatic, For&, and Coa~tal

dollar t & m . A h t h g o xp tha benofit

Important honefits bayond tho human

fmm this ruio. Thase n & or benents Occur both d€mc!ly horn NOX and so2

damages t o EU ! mi manumonk as well

Ecosystems? I

Amosphoric deposition of sulfur and nikogsn, moro cornmody lmown BS acid rain, a t c w when omissions of Soi and NOx react in Ihs atmosphera [with water. oqgan, and oxidants1 to farm mrhus acWc compounds, These acidic compounds fa11 to earth in eithnr a wet form [An, snuw, and foe1 or a dry form hnsas and particla]. Prevallfngwiads cnntransportacidicwmpunds hundreds of mi& acras Statu borders, Acidic amaounds fibdudinn small

and ham to sensiliva mastal ecosystems. I. Add Dcposltlon and Acidificatian of L a b and SLreams

Tbe exlont of advcao clfects of add depasitlon on frcshwaterand forest ecosystems depnnds largdy upon the amsystem's ability to neutralize the odd. Tho neutralizing ability key indrmcator is termed Acid Noutnlizing Capacity (ANC)I dopunds largely on tha watorshad's pbysiml chmctcristics: Geology, sdls, and sizo. Waters thal am sensitive to ncIdIncatIon tand to ba Iacated in small watersheds that have few alhlino rninmls and shehwsoIh. Convarsely, warorshPds thot anlain alkalina miaan?s, such as llmcsst om. tend t~ bavo m1eK with B Mgh ANC. Areas espedally sensitive to acidifcation includo porKons of tho Eforihoast (particularly, tho Adhodad; and CPtskiIl Mountains, portions of Now England, and slre~ms in tho mid- Appakchlan high1andsl and soulheastern sfreams.

Some of the Impacts of today's rulemaking on acidificntian ofwalor b o d h have beon quantihd. In particular, this ~ I B ;vi11 mult in impmvernsnts in tho acid IrutferIng ca aeity far Inka In tbe Nmihsast and ~ & r o n & c k Mountnins. Spndfiealtye 12 percent or A d h a d iakos mu projected to be cbronSwlly acidic in thn

m r u l e will O h i l I 8 t O ebronic achiification in lskas In t t a Adlrondack Mauntahs by 2030. In addifion, today's rule is expected to dacroaso the pemntagm of cbnically acidic lakc5 throughout Northeast h m 6 b I percent. Nowovar, same lakes in the AdirondPeks and New England wIll continua to experianco episodk addifieatinn won aftar implementation

h B rocent study,"Resourees for &e FUWQ pfl ~ ~ t f m o t ~ ~ total banefils (i.~.. the sum of we and nonuse values) dnatural msoura impmwaments for the Adirondacks msulting from B program that would roduca acidiEeation

Adirsndacks lh8t Wam of concern for acidification. While thls shtdy r~qulr~s further evaluation, the RFF study suggasts that tho banefib of add dopnsitian redudurn for fhs CAIR Iikoly to Im subslantid in toms o f h total monelized valuc for amlogid endpnlnts (atthuughlikdy small in

bas0 MSB. HoWPVW, We pmjQCt that (hho

O f t h i s d R .

in40 pIXCRnl Of Ih8 lakes h tho

Fedaral RcgisIerlVwl. 70, No. WThursday, May 12, 20U5/Ruhs and Reguulntions 25311

comparison to the estimaled prernaturn mortality benalils estimatos]. ii. Add DopasIlhn and F o m Ecosydem Impacts

Currant understanding of the effcels or acid doposition OR forat w s t o m ~ famsas on the offectsof amlo lcal processas afiectin plent u p d o , mtantion. and cy&g olnulrIants within forest ocmystoms. Recant studies Indhto that add dopositinn Is at l a s t artlallyrmpoosibb far dsveasos In

L D ations [caldurn. mngncdnrn, putasslum, and atbars1 from so1Is in Ula northasternand southeastern United Stakes. Lasses ofcatdurn Eom forest soils and fnmstod fvatmhnds havu now bmn documentad as a somi Live early indicoior oisnll ressponse to acid deposition for awide nnga of fumst soik in tho United Statns. In redspmce stands, a claar llnk

ax& bQhvean add deposition, caIcium supply, and smsitiviiy ta abioticstrsss. Red spnfca uptaka and rotenthn of deium Is Irnpactod by udd deposItrou in two main ways: Laaching of important stars ofcddumfrom n60dh and decreased mot uplaks or mlciurn due to ddum doplation fiom tho soil and aluminummobrtkation. Thcse chnnges incream thn sonsitivity of rod spruce to winlor iujurk under norma1 winter condItIans in the Northeast, result in the loss ~ F a ~ c d l e ~ , slow tmgrowfh, and impair the overdl heallhand productivity of forest msystams Inmmy area5 OMQ eastom Uniled Stnttw.fn additition.roccnt studics ofsugarmsplo declins in the Nortteast demonsmto a linkhotween h w basa caliaa avaibbility, high levels ofaIuminum and manganese in t h ~ soil, and itlcreasd levols of trap mortality due to native deflating Insects.

Althoughsulfatfi is thapdmary musu olbssa catIon Ioachfng, nitrrtts Is a dgnificast contributar in w a t d e d s that OTD nearly nitmgon saiurated Base caliun daplation Is8 causa for coneern '

I~ncause of tho role &ESP ions play in surfacs W ~ Q T acid noubdiitiou and tboir impnrlanca as ssantfal nutrients for t t B ~ growth [mlciurn, rnagaosinm and u~ossium].

Th8.s m y l a m y ecLim will demaso acid daposition in the transport region and k likoly to bavapositiva effects on the health nnd pmduelivtty of forcst systems in the F ~ ~ I O R . iii. Coastal Ecosysfams

Since '1990, a Imrge amuunt of rosoareh has bcon conducted 04 tho impact of nitrogen depusition to coastal: w a b . NIkogm is often the limiting nuMent In coastal ecosystems, lneroasinn tho leueIs

signifiant changes to hose ceosysterns. In reesnt decades,humanactivitias have aceoIerated nitmgan nutrient inputs, causing aXCeSSiV8 owth of algae and lading to degradafwator quality end assuchtad imparmonts of atuarine and coastal resources.

Atmospban'c dopsilion o h i m p Is aajgnitimt SOU^ ofnitrogen to many cstuarIes,Tho mount o l nitragen antaring mtuaries dun to abospheric deposition varins widely, depending on &hn sizo and lucation af the estuarioo watershed and oihor sourm dnitrogm in the mlershsd. Thcm am a fnw estuaries whore atmospharic dopasition ornitrogen contributas wall w a r 40

m n t ofthe total nitrugen load; E owawr, in most estuaries far whifh estImam exist. the contn%ution from atmospheric deposition ranges from 15- 30 poremt. The area of &a camtry With the Mghest air daposItloa mns (30 parcoat daposiuon rates] indudes many estuaries along tho northst seaboard From Massachusetts to the Cbesapsaka Bav and done tho mntrar Gulf ol

Aimosphpric Ahinistxation t N O M ) published tho results of a 5-yoar nauonal assesssmant ofthe sevority and e x t m af estuarine autmphimtion. An mtuary is denfind 8s thn idand am of tho spa that meets the mouth of a rlvor, The 138 ssluariPs &amctarizQd in the dudy roptesent mum thaa9n parcaat of total 8sLuarlno water surracs m a and tha tafaf number afU.S. estuades. The study bund that estuaries with moderats to high eutrophimtlon represented 65 percoat ofthe astunrho surface area.

Eutrophication is oEpaFtIcuIar concern in mastnl areas with paor or stratified circulation patterns, suchas tbe C h ~ a p ~ & Bay, h n g 15?md Sound, and t h ~ GullofMaxko. Insuch arms, the "ovsFpmduced"al~aa tends ta sink to t h ~ boitorn and decay, using all or most of t h ~ avatlabh oxygen and thereby reducing or elimlnatiag popuIatIons of bnttom-feeder ashand shallfish, distorling tho nrrrmal populntionbdanca betwmn diEoraat aquatic orgmisms, and h extrama CBSES, causing dramatic fish UU5. Severe and persistsnt eutrophication oRen directly impecls human activities. For exampls, fishery resource losses mu be caused dlrectly hy fish kitls assaciated with law cUssolved oxyssn ond loxieblooms, Declines in tourism occur when law dissolved oxygen MWCS nDxious smells and floating mats oFalgal blooms m e t e udavorablo aesLhatIc ccinditions. Risks to bman beallh inmase when h a

toxins become alrbornc, musing respiratory problems duo t o inbidation. According to i h ~ N O M repod, mote than half ofthanation's estuaries bnvo madnrata tn hish wprasions ofat least o m oEthosasymptam'an indiaioa that eutrophicat~on is wdl d8velopad in mom t h n half of U.S. oswatios.

ThtS d e Is antidpatad to reduce nltrogm deposition fn tha CAR rogion. Thus, mducthns In the ~ Q V O ~ S of nitrogen dupos i th havo P pnsItivo impaa upon m o n t QU~XO hlc conditions in ~stueriw an~coastal amas in thn @on. Whlla wo hm unable io monetize tho bonafits of such rcductians. tho Chesap~ake Bey Pmgmm astimated ths mduccd mass of delivarad n b g m loads likdy to rwuh from tho CAW based upoa tho CAIR proposal deposition cstimirtcs published in Jmuq 20M. Atmospboficdaposition of nimgen accounts lor a slgnnificnnt portion of thn n b g a n loads ha tho Chesapeake wItli 28 ament dths nitrogan loads from $ID mtorshed coming from a h depasilSon. Basad upon the CtSIRprnposal, nimgan doposition rates publkhad in the Jnnuory 2004 proposd, tho Chcsapcake Bay -ram fmd5 &at the CAIR wiII likolyreduw tho nitragQn loads to tha Bay by 10 millltm pounds pat y m by 2 0 1 v 7 a Thaw d s t a n l l a t nitrugon load reductions more lban fulfill the WA's commihent to reduee ahnnsphecte deposition deliverad to tho Chesapeake Bay by 8 rnlllfon pounds, b. Am Thorn Had& or Wolfare Diibmefits d t h e CMRThnt H a w Not Been Quanlifind? In contrast to hadditional benefib

ofthe rule discussod abova, it k a h posdbla that this rulo will result in dkbnnofits in soma areas of thp Xogioa. m t lavols of nibogen doposition in tbm m a s may provida assivo fertIlizatian for rotast aniternsttia~ ewsystems whare nukients ace B limiting factor and for sama eropIands. The oEects of omm and PM on

miiatrve h d a r in &a atmospbero can also load to effects afuneartd~ majir~ttud~ and diroetton OB the psnahatio~t of ulmvioht light and climate, Ground fevd amna m h up a small percentage aftotd atmospheric ozone [including tho stmtosphsdc layer) that attenuates ponehadon of dtmviuht-b (uvb) radiation tu iho ground. T ~ B EPA'5 past e v a h a f h of the inFarmathn indicates that potentid dishon&& would be small, Varjablc, a d with tau many mewkinties to attempt quantrfica tim of datively

to& from algal blooms accumdale in edlble fish and shellfish. and when

722 25312

small changas in w m g e orom h v e h over the Eourso of a year P A , 2005a). Tho EPA's most wont pmvisiond assessment of the mmnlly avdlnblo idormation indicates that poteatkd but unquantifiable bennfits may also arise from omno-rolated attonuatlon ofUVb mdiation EPA. zaosb). Sulfato and

FedcnL RegistwlVoI. 70, No. 91 /Thursday, May 12, 2005 /Rules and Reguhlions

nitrato ~ F c ~ ~ c ~ R s dso sealter w b , which and sulfates and nitmtes o n rcduce th can dacrease mposura of horbnta? amount orsolar radiation roiwhing t h o SUrf8eaS to LfVb, but InCFeasa e x p o s m earth, but EPA believes that wo BTI of vertical surfaces. In this CBSE OS wall, unablo to uantify any not climato- bolh h rnqnitudo and dlrection ofthe &ted d15 L nofit 0; bonefit associaled d a c t ofreductions in sulfab and n W ~ t a with partidos are too unwrtaln to quantify in &b mla (EPA. zooe), Ozone is 8 grcanhouse ga5,

TABLE X4.-hlQUANTtFIEII AND N O N - M O N E i I ~ EFFECTS OF THE CLEAN AIR [MERSTATE H U E

combhad ozone and PM

According to tho SBA size standards Tor NAICS code 221112 Ulflities-Fossil Fual Elocbic Power Gonaratioo. n firm is small if, indtrdhg its dTilfates, it is primarily engaged in the gensratfnn, ' transmission, and or dwbution of electxic anergy for sale and ils total electrjc'output for the pECdiIIg fiscal

Bar did not exceed4 million megawatt

Courts have Intetptoted the RFA to requira B mgulalory noldbility analysis only when small entltias will be subject to tho requirements of t h o d e . See Michigan v. EPA. 213 F.3d 663,66&E9 (DC Cir., ZOOO), &. dcn. 121 S.Ct 225, 148 LEd2d 135 (2001).

This rule would not establish requirements applicable 10 small entitles. Instead, it would ruquira Stales to dewlop, adopt. and submit SIP rpvis~ons that wodd achieve the necessary SO2 and NOx emIssfo~s

io",

reductions, nnd would have to the Slates ths taskafdstermining how to oblaia &use reductions, Including whlch anttties ta regulate. Moreover, barnuse faf€eclod SMes would have discretioa to chouse the S U U r c ~ 10 regulate and how much srnfssions reductions each selected so- would have to achieve,EPA coutd not predict thn elfcct of the r u l ~ an small entitias. Although not re uired by l h e RFA, the

analysis. Overall, about 445 MW of tatal mall

entity opacity, or 1.0 percent nftolaI smaU anti@ ca aclty in the (=AIR rdnn,

maintain under the CAIR raiativa to tho base case. Inpmctlce. units projledad to ha unamnamic lo mahIhhl may be "mothballed," mfimd, or kept in serwim to onsuse transmission mlSabiMy In certain park of the grid, Our P M

Agmw has con l ueted a small business

k projected to 1 uneconomic to

modding is unable to distinguish batween these potenth1 outcamus. The BPA modding idontiffad 2G4

small ontities within the CAIR mgion based upon the dohitinn ofsrnalL entity outlined above. b m this analysis, EPA oxcludad 189 small entities that wew notprojocted to hwo at least one unit with B genamtiug capacity of= Mw orgreat operating in the base case, Thus, we- bund that 75 smaIl antiff es may potentiallg bo afltcted by thtl CAIR. OF &as8 75 smalI aMties, 28 may experience compliance w5ts In BXCESS orma pmmni o€ fevonues in ~ 0 1 0 ~ and 46 may in 2015,

how tha affected Stat05 Imphnmnt control memums to maet their am&sioas hudgets as set forth in tbIs dnmddng. Potontially affeGtedsrnall entities cxpodencing compliance COS& in moss of 1 prwnt of revnnucs have

basadon Agency's aSSUmpuOnS of

25334 Federal RegisIcr/Vol. 70, No. 91 IThursday, May 12, 2oDS/Rules and Regulations

some- utential lor significant impact rDsulJng horn implcrnmtation of tlio

HOWeVW, it IS the Agoncy's position that bemuse nuna af the affected entitios cumnfly oponte in a compelithe market onvirnnment, they should be ablo to pass tho costs of complying wfth rhe M a n to mta. pay~rs. Moreover, the decision ta indudo only unS!sgrenter than 25 Mw insiza axmpts 185 small antlties that would othewIse bs pntentialty dhctad bythaCA1R. considerad &II *valuating the irnpnct af theCAIR,specifieally, nndeap and trade programs mora snenlly, on smnll

and bade prosram Is dm*gnad such that

R ~ D to bn dlooated a m s s units. A d a t e that W ~ L Q S to rnItipte the impact of the n i l e an small ontttias might chaoso ta allucata NUX aUowances in a manner that is iavmbla to small entltIes. EnnHy, tho llsu of mp and ttPdo in general will limit impacts on small ontities reIotios to B less flexible commnnd-and-crmtmI pmgmm. D. UnJunded Mundatcs Reform A d

Titla II of the Unfunded Mandalas Rdorm Act of 1995 pub. L. 10441 [UMRAI, 8stabliihesraquIrements for Federal agendns to w e 5 9 ths effect5 of &eIr re latory actions on &to, locat, and TriG gavmmsnh and tho pdvvale sactor, Undarsoction 202 ofthn UMRA, 2 U.S,C. 1532, EPA gnnurnIly must preparsa writlen staioment, including P cost-leaelit analysis, for any prnposnd or h a 1 mle that "includes any Federal mondate that may resuIt in the ~xpanditure by Stale, heal. ond Tribal govemmants, in Lhs agpgpto, or by the pr€vate sector, of S~OO,OOO,~OO D- mom

in any one year." A "Fedaml mandale" Is dehdundersedion 421(6), 2 USC. 658[6), to induds a "Federal intergavarnmeatd mandate'' and a "Fnderal privato setor mandata'' A "Fedarzl integovommantd mandala," In turn. is defined to includo a reyletron that "would Imposo M onforceabIe duty upon Slate, Local, OF Tribal governments," section 421 151 [A] [i), 2 US, C, 658 [5] [A) [ i) , nxeopt for, among olher things, B duty that is "a conditionof Federal asbtmm," suction 421(5J(A)(i]tI). A ''F~dd primt~ saetot mandata" includes a ragulatrnn that"would impuss an snfnrceabla duty upon t h ~ privat~saetor." with cortain exceptiuns. scetinn422(7)(Aj, 2 USC, 658(7)[A].

Before promul@ng an EPA rulo for which a WTIthn StatOmmtis needed undor suction 202 ofthn U r n , section 205.2 U.S.C. 1535, of tho L M I A

Two other oink shuuld be

ealilles. First, under $0 CAm the cap

StUfOs d a b d n s how NOx ~IBW~IICBS

. * .

gcnnetally rpquires EPA to identify and considera reasonable numbor of rcgulatoty dtema~ives and adopt the Ieast c06tly. most cost-efFective, or least burdamnmu altn-mative that achieves t b o objectives olthe rule.

fur the final rule consistent with thn requirements af sedan 202 01th W. Furthomore, as EPA stated in t h ~ rub, EPA Is not directly establishing any FeguIahy requirements &at may significantly or unlquely a f W small govarnmonts, including Trihl govemments.Thus, EPA &not obligated t 0 dovolop undw SQCtiOn 203 of thn U M M asmall government Bg8ng plan. FurIharmnro, In a mannercondstcnt with tho intergnvemmentd wonsultnticra provisions ofsection 204 ofthe UMRA, P A d e d out consullations with the governmentel ontitias afbcted by this d o . For several reasons, howover, EFA is

not rcaching a f ind conctusian ns to t h ~ applImbIlity of tho requirornants a€ UMRA to this rule ma kin^: ac!Ian. First, it is questionable whether a requiremont ;a submit n SIP revision wauld consutuh aFoderal mandm in any m e . The obligation for n Sfnla to cnvise Its SIP that arisw out ofsoetion iio[al ortho CAA i s not legally anforcaablo by a court oflaw, and at most is II cundIUoa far conthuedreeelpt OF highway funds. Thmforc, it is ptrssiblo to VIQW an a d a n requiring such a submittal as not cresting any enbmebIe duty within the rneanhg of smtiotl4zr[s](sal(rl of UMRh (2 U.S.C. 658 (a]m]. Even if it did, the duty could ba viewod as falling within the m p U o n fora condtlion ofFadera1 assistance under section 421(51[al(il[11 af U M M (2 U.S.C. 658(Sl(a][illr)).

Asndod aarlinr, howavor, notwithstanding those issues, EPA proparad for thct finalrule the statement hat would ba required by UMRA if its slahttory provk1:ons applirrd, andEFA ha5 consuIled with pvernmtmtal nnWes as would bn requhdby UMRA. Cnnsequantry. it is not necessary for EPA to reach s condusion 8s to the applhbility oftha UMRA rtl uiramants.

% h ~ EPA wndueted an analysis of the aconomic impacts anticipated front tho CAIR for govemont-owned odt les , 'fbe modoling conductadusing the IPM prolects that 8bOtlt 340 M W o l municipalityarnad capacity (abnut 0.4 percent of all subdivision, Stah and munIcipaIity capacity in t h ~ CMR regian) would be uneconomic to maintain undar ths CAIR, bfiyoad what i s prnjeeted in the bas^ m e . In pmctice. hawsuer, h a units projected to be unemnnmie to maintain may ba

The EPA prnparod wrItton slatomant

O m ~ ~ b ~ l l d , ' tetimd, or b p t In sarvico to ansum transmission mlinbilrty in certain park of &a grid. For the most part, theso units arosmalt and InfrequenLIy U S R ~ genmdng units that are disparsed lhroughnut h a CAIR region. Thn EPA modnIIng idontllied 265

Stat0 or rnunidpdly-owned anlf l is as well as subdivkions, wiWn the CAR r q i m The EPA Pxcludod horn the annlysIsSovcr~mant-owned entities that were not projectd to haw at Ioast ono unit wirh gonemtlng capacity of 25 MW orgreatsrh the basecamThus, WII excluded 184 ontitics h m h a analysis. We round that 81 government sntities wlll bapatcnlidly affectad by CAlR OF tho 81 government entItIas, 20 may exparhco campjianca costs in excess of 1 percent ofrevenues In 2010, and 39 may in 2015, based on aur assumptions oEhow tho &eetcd States implwnent control measures ta moat thoir emissions budgets as set forth in this nilomakiag.

Govarnment entities prapeted to cxpnrianco mmplianco costs in mcm Of I parcont ofmWnuos hBv8 somD pohnllal for signlfimnt Impact resulting fmm implomantation of h a Huwavar. as noted above, 11 €s EPA's positlan Lathmuso thwsp govornmmt untilins can pass on their wsts of cornpllanca 10 mtwpayers, they will not bo signffimntly im actcd. firthormorn, tbs decisim to h&da on?y units greator than 25 MW Snsize exempts 179 gavarnmant nntities that wouId othsn&o ha potentially alfected by tho c m Tho abnvu paints asidu, potontially

adverse Impacts of the CAIR on State and mun3clpalIlyswned entitles coutd be limbed by lha fad that tba cap and tmde program is designed such thal Stat= detmmim how NOx ~ ~ O W G B S am to be allocated across units. A Slalo that WiShE.5 to rnitlgats tho Impact oftha mle on Stata ormunicipality-ownod enfltk might choose io allocate NOx dlowanm in a mannaf that is favorabh ta these ontities. Fdy, tho us0 of cap and t d a in gononl wilt limit impacts un entities owned by small gwvemments rdativo tu a lpss flexiblu command-and- control progm. E E x F c t t t i ~ OrdQr 1313212: Fed~mfism

Executive Ordar13132, antitled "Federalism" (64 FR 43255, August IO, 19%j], requires EPA tu develop an accountable process to o m r a "mcaninghl and timdy input by State and law1 olficids in t h ~ diivdapmant of regulatory polides that haw faderalism hplica~ons." "Policies that h v e fndarallsm implitations" is daiinod in the b c u t i v o Odor tu includo

Fcdaral RegisterlVol. 70, No. 91 /Thursday, May 12, 2005 /Rules and Regulations 25315

mgulaticms that ham "subslnntial direct offects on tho Shtes, on tho rdotianrhip bntween the nalional gwernmons and tho Slates. or on &e rlis~ribulion of pnwar and responsibilities among the various levels ofgovornmont+"

This ruIn does not have fcdemlism implicatians. It wfll nut hnvn substantid dirac! dhts on tha States, on tho ru1ationshIp hiween the national gnvornrnent and tho Stntcs, or on the distribution of power and rosponsibihlios among tbs various levds oCgovemmmt BS specihd ln h ~ c U t i v o Odor 13'132 The CAA sstablfshes mlationshi bativoon the Federal Gavarnmoat and ZB Statas, and this nil0 docs not impact that mlationship, Thus, haeutive Odor 13132 does not apply to this nrla. In tho spirit ofExeeulive Order 13132, and consktent with EPA policy to pmmole communications betwaen P A and Siata and local govornments, EPA specifically sokited comment on thk ~ I Q horn Stat0 and l a d ofidals. F. Ewcutivc Oder 13175: Consultation and Coordinution With indim Tribd G i J V M C I l k

E x m t i v e Orderf3175, entitled "Comltation nnd Coordlaallon with IndianTribd Covamenk'* (OS FR 6724% Norombar 9, ZODO], mquitos EPA to dnvalop mi acmuntuble process to ansum "meanhngful and timnly input by Tribal oI6cIals in the developrnant of rogulatory policies that have Tribal fmphatfnns,"This d e does not have "Tribal ImplSeatinns" lis spcdfied In Examtivo Order 13 175. This ruls addrosses trensport OF

pollution that m p r e m s For Ozclni F k . The CAA provides for St8tOS

ond?tibes to develop plans ta mgulatri sm'mions of alr pollutants witkin thdr jurisdictions. Tha regulntims darZy the statuto obligations ofstatas and Tribes Lt deve?op p1ans to implomont this rule. Tho Tribal Authority Rule (TAR) give Tribas tho opportunity to develop and implement U pmgcams, but it leaves to &e dismtion d t h p Triba whathm ta devuIop them pmgtam and which prngrams, or opproprIatB eIomants of a program, the M b e will adopt.

ThIsmIo does not haw Mbd implications as deGned by Executive Order 33175. It dons not have a substantia1 dtrcct offoct an an0 or more Indian Tribes, bemuso no Triba has implemented a fedsnlly-i3nnforceable aIr quaIity management p m p m under h a CAA at this tima Futharmore, W mh dms not affect the relationship or distribution dpowm aad responsibilities batwann the Federal Gavvernment and Indian Trlbos. Thn

CAA and r h ~ TAR establish he rotalionship of tho Federal Government and Triies in davdoplng plans to attah L ~ s NAAQS, and thr5 rule doos nothing to modXy that relationship. B~EIUSB tbis rub does not havo Tribal implications, Executive Order 13175 dues not apply. If ons assumas a Tribo is

fmplernnnting a Tribal Implementation Plan, tuday's rulo could hotlo IrnplIcatIous for that Tribe, but It wodd not im os0 substnntid d imt msts upon the Trik nor preempt Tribal hw. As provided above, EPA has Estimnted that tho total annual prlvate corn for tho rulo for the t=AIK region as impIemontad by State, lod,and Tribal governmonk Is approximatoly$2.5 billhn in 2010 and 13.6 billion in 2015 [1Sss$]. Tbete are cumonfly very few amissIons s o m s in Indian country that could bn affected by this rub and tho pemnta B ofTriba1 land that wilt be i m p a d i s very small. For Tribes that chwso to regdata sources in lndisn country, tho costs would be attributed to inspecting regulated facilities and onfming udo tedre ulalions.

not apply to this rule, EPA consuIted with Tribal ofEcIals tn dave1o ing &Is rule. The EPA has encnuragedkibaI Input ut nn oarly sfagn, AIsu, EPAbdd periedic meoljlings wilh tho States and tho Tribes during fho technical dnvalopmant ofthkmnrlo. Thm rnnetings were held with tho Crow Tribo, wharp ths Ttibu expressed concernsaboutpatonlld impacts ofthe rule on their coal mine aperatioas. In addition, EPA held three calls with Tribal navhanmontal professionals tu address E o n m 5 edfic to the Triba These &cussions h given EFA vnluabh idormation aboutTAbal concern regarding ths dnvelopment of this d e . The EPA bas prnvlded Euiefin~s fPrTrh1 rBpKeSBntathS and the aowly formad Naliond Tribal Air AssadatIan INTAA). and other national Tribal fonuns. Input horn Tribal repressentativas has been taken into consideration In development of this rule. G. Executive Order 13045: Proteclion of Children Fmm Er~vlrnnmci~td Health and Safefy Risks

Becultve Order 13045, "Protection of Children from Envhmentd HPdth and Safety Risks" (62 FR 19885, April 23,19S7J applies to any rule !hd (1) is detmlned to be "emnomidy signifiwt" as definad under ExecutSve Order 12866, and (2) cnnmm BEL environmontd health nr safety dsk that EPA has mason ta beliam may hava a

Ahug!Executive Order 13175 do=

Soction 5-501 of kc! Ordar directs tho Agency to ~valunla La snvironmcntd health or sabty ofFeeets of the planned rula on children, and mplain why ths pIanned rqulation is prefembIe to other potantially sfleclivo and masonably fensiblo dbmativrx considared by Ihe A W W

This final mlo is not subfcct to the Executive Order, b e a m ii does not involve dacisions an onvhonmwtal hoalth or safely risks that may dkpmporiianateIy &eel childran. The EFA believes that tho omissions reductions from thestmtegies in this a l a wil? further improve air quality and will Furthm improve chiIdren'sheaItIi. H, Executive Order 13211:Adions That Sign ijjcm Uy Aged Energy Supply, Distribution, ar Use

Execuliva Order I3211 (a6 FR 28355, MUy 22,2001) PrOVIdDS lhd EgEltCiQS shaIi prepare and submit to tho Adminkhatar of the Office of Rejyhtory AFaSrs, OMB, a Stntmont of EmrgyEKocts focmriah aetfons identified as 0'5igniE~nt onorgy aclions." Snction 41b) ofExecutive Order 13211 definpr; "signKmat nnorgy actions" us "any action by an agency [normally ublishad In rho F c d d Register] &t pmmdgnla or IS nxpndod to lead to the prornulgaUon of a final rule or regulation, including notkes of inquiry, advance noticas of fine1 rulemnking, Pnd notieas of fmd rulemaklng (I) [i) a signikant regulatory action under Executivfi Order 12880 or any sumssor order, and (It) hkdy ta havo asignifnnt adveae affect on tha supply, distribution, or us0 of anerpy;.or [2) dcsi natad by tho

f n f m t i m and Raplatory Afhirs a5 zt "signincant energy adon." ThIs find rulo is asignif iwt rcgulatary nelion undar Executive Ordar 12866, and this rulo may have- asignifiwntsdverss slfect on 8 8 supply, dktributlm, or use oronargy.

If Stat= Ehoose to obhh the emissions reductions requirad by !his tule by regd8ling EGUs, EFA prujocts ihat appdmately 5.3 GWs of coal-fired ganomtion m y bo romovnd horn operation by 201~. Lnpradm, howaver, tho units pmjnctad to be uneconomic to maintain may ba 'mothtalIad.' mtired, or kupt in sorvico to 0 l l ~ ~ v o transmission rortahilky in certain parts of thegrid. For &a most part, these units amsmd1 and ~ ~ q u ~ n ~ y ~ s e d ~ ~ ~ ~ t i n ~ ~ n i ~ that are dhporsad thmughnut the CRIR rogion. Lass C U I S S O I V ~ ~ ~ V ~ assumptions regarding natural gas p r i w or electricity dnmand would aeatn a arcatcrinwntrva to k o a thesaunits

Admimslramr i o office of

dsproportionate affect on cbidmn. If the regulatory action meats bbth criteria, openfional. Tho EPA p;ojccts that tho

25316 FcderaI Re@tcdVoL 70, No. 91 /Thursday, May 32, ZOOSlRulns and ReyIations t

aversgu annual elnctrkity prim wili increase by less than 2.7 percent in the CATK rq inn and hi natura1 gas prices will Inmaso by Ius than 1.G percont, The WA doas nat bdiovo that this rula will havo any o h r Impads that m a d tho significance cribria Tho EFA bdiovos that n numb= of

faatures of today's rulemaking SBWO to roduce i!s Impact an ensw supply. First, tha optiond iradbg program provides considmble flnxjbility !O the powar scctar nnd m a b h industry to comply with the amIssfon reduclIon requiramnts in the most mast-offccttvn manuor. thus minimizing ovorall msts and the ultimate impact on energy supply. The abllfty to use bankad oUnwances from thu o x i s ~ g titla iV SOZ tradSng pmgram and tho NOX SIF Call Trading Progmm nLo provide additionel floxibiilty, Socond, rho CAR mps om set in two phms and rovidn adequate

controls. Fnrmoro details cancoming enorgy impacts, SOB thfl Regulatory Impad M p I s for Iho Final: Clean Au Inlerslale Rule (March 2005).

I, Naffmal Technolow Tmnsfor Advancement Act

Section IZ[dl of the Natlotlal Tcchndogy Transfer and Advaaemmt Aet INTTAA) O f 1995 [Pub. L. 104-113: 25 U.S.C. 272 noleJ directs P A lo us8 voluntazy c o n s o m shndards in its regulatory and procurement activities unloss ta do so would be inconsistent with apphble law or athewhe Impmetieal. Voluntary amsonsus standards am tschddstandards (e.g,. rnatmials speciiicalions, tost methods, sampllng pmcsdum, business pmclim] dsvolopodwadoptadby OPU or mar0 vnhntary wmonsus badias. Tho NTMA directs EFA to provide Congrsss, h u s h ~nnud raporls ta OMB, with wplanalions whanan

doas no1 usu ovallable and a p p l i d e voIuntaty wmellsus standards.

This rula would requh dl SOUPCB~ that paitidpate in th8 trading program under part 96 l a m a t ha applicabh monitoring requirements of pmt75. Part 75 drcady inmrporatas a numbor of volunkq consensus standards. Cnnsktent with tha Aguncy's Pcrformanm Based McasurPrnont System PSMSI, part 75 sela forth perlomaace criteda &at dlow the us0 of ehmatiw methods to tho nnas set forlh in art 75. The PBMS approach Is intmdadlb ba mom fledble and mst- effective forihe rejgIatd community; it

tlrnD forEGUs to lnslaPr pdlution

howovor, EPA periodidly rovisos the test procedures sat forth in part 75. When EPA ravims the tost procedures set forth in par! 75 in t h e futm, EPA will addmss tho uso oFmy new voluntnry consonsus standards that are equivalent, Currently, even ifa test pmcedum 3s not sat forth In part 75 I T A is not precluding the WD ofany mehod, whether if constitutes a voluntary consonsusstandard or not, as long as il meets the wformanca criteria spedfind; Lwwer, any dtsrnativo methods must bo appmvcd Lbmugh the patlaon process under Sce. 75.66 bnfom t h y am used undcr part 75,

1. Exeeutjwc Odor 32898: Fed& Acilons To Addresslinvlmnrnentol lustice in Minority Popdolions and Law-Snwme Pup d o tians

Executive Order 12898, "Federal Act i~m to Address Envhnmentel Justim In Minority PopuIations and Low-heomo Populations," requires Fedeml agendas t o constdarthe impact oPprogmms, policitrs, and activities on minority populations and law4neome populatinns. Acwrdiq La EPA g u i d a n c ~ P agencles am to ass= wbether mhority or lowincome populatims faca risks or a rate of exposure to hazards tha t we signi5wat and that "a to apprecia Ef y exceed the risk orrato to the genom1 population or 10 tho apprnpriah comparison group." (PA, 19Y6]

la acwrdauce with Exeativa Ordcr 12898, tho A p n q has considwad whother tbEs ru10 may have

rcciably exmsd or Is IIkaSy

Id Congressiand Review Act

U.S.C. 801. etseg., as added by fhe Small Biuiness Rqplafory Enforcement Fairness A& of 1996, generally provides that behm t rule may tako ~ffect, the ageney promulgating the d e must submit a rule report, wMch indudes a copy orthe rule, to eadhHouse ofthe Congcms and to tha Comptroller General of the United Stam. The EPA wiIl submit ampmt containing this rule and ofbor xoquired information to &a U.S.

The Congressional Review Act, 5

Sonata, the US. House of Rapresonlativcs. and tho Complrollor Gnnaral of tho United States prior to publication of tho rule in the F e d 4 Regkler. A Majorrulo cannot takp nfFeet unUl50 days a h it Is published in the Fsderal Rqkter.This action is allmajor nife" as defined by 5 U.S.C. 804(21.

L JudiciOr Rm'ew

which AdernI Courts of A p p d have vonuo for potitions afraview affinal actions by EPA. This Seetian provid~i, in por~, that petitions forrnuiuw must be fihd in the Cmrt of AppePls €or tho District of Columbia Cicuit if [i] the ngency action C O W i S k of'hakhally appliabli regulatiuns promdgatod, or final action fakon, by tho Administrator," or Uil such a d i m i5 lamlly or regionally applicable, j P s u c h action is basad an a datarminetion of naticnwfdn seopn or slfoct and I f h taking such action the Ahinismtor finds and publishes b a t such d o n fs based OR 5uch a determinatian."

Any fmd actinn mlntad to CAIR is "nntionally applimble" within tho mmnhg ofscctim 3W(bl('1]. As an initfnl mntbr, thmugh this rule, WA intcrpretsssdion 110 of tba CAA, a pmvisbn whlch h8s natIonwIda applrmbllity. In addition, CMR npplios to 28 States and tbo Diitn'ct of Columhin. CAlR is aIsu based on a common corn of facluat hdings mnd analysns mnanming the t*in~port of pdhtants batwarn I ~ D different Stotas subjsct to it. Fhd?y, D A has establiskcd uniform appmvabllity criteria tbat wanld bo appkd 10 all States subjact to CAE!. For &CSP reasons, thn Administratorabn is determining that any find action rogarding CAIR is of mtionwido 5WpO and nffoct forpurpmes ofsacUon 30t[bl[1), Thus, any olitims forroviaw oEfinal actions CAlRmusf bs filad in the Cow& of App~ah for tbe District of Columbia Circuit within GO days fimn tho data find action is publishad in the Federal Register. List of Subjects 40 rn Port 51

Section 307[bj[1) oftbe CAA indiwtw

AdminIstntivo tactrce and

htarguvommental mhtiofls, Nitrogen oxidus, Ozano, Partialate matter, Regional hare. Reporting and mcordkeaphng requirements, Sulfur diOxidR.

prneedure, Kip01 P ution conml,

FcdcraT Register] Vol, 70, No. 91 IThurssday. May 12, 2005/Ruhs and Rcgdetions 25317 b

reIatSons, Nlkogen widas. Roprling and recordkeeping mqufmmsnks. Sulfur dfoxida 40 cm Pad 96

AdministsatIvo mdice and

Electric ulilkIn$, Nbogen oxides, Reporling and rccardkaeping rsqukments, Sulfur dioxide.

Stephen L ]ohason, Acling Adminkirator. r1T~o40,d~pterI,oltheCodeof F a d e d Regulations is amended as follnws: PART 51 +AM END ED] 1 1 .Th authori! citation torPart51

procedure, Air p~ P lutlon control,

Dmd: Mnrch 10,2005.

continuus to rea J as follows: AuthPtiWU US.C 1OI; 42 U S C 7401-

767lq.

3 51.121 [Amended] u Z SeclIon 51.1 21 3s amondodby adding a new patagmph [rl tu read as follows: 55t.12Y WndIngs and rcquhentsfor subdsston of State Implementation pIan revIdons relatlng to cmbsrons of a i d e s of n b g m

(r)tXl Notwihtanding any pruvisions of pamjgaph (p] of this section,subptts A through f of part 96 of this choptcr, and any State's SIP to h contrary, ih AdmSnistrator will not carry out any of tha functions snt € o h for tho Ablnishtor in fibparts A through 1 nf part 96 ofthis chaptor, arin nay ernisdons trading program in P Stato's SIP approved under pnmgmph [p] of this section, with regard to any omno season that DEC~VS &wSeptambar 30, 2008.

(21 &apt as pmvided in §r;1,123[bb), a Steta whase SIP Is approved as rneating thn requirements of this section and that indud= an emissions trading progrufi apprnwd una- paragraph (e) of this section mustraviss the SIP to adopt control m e m m that satisfy the S ~ B portion of La Steta's NO% emission raduetioa requhments under this seetion as ths Stab projected such emissions trading program would satisfy. 8 3.Revisa§61.1220fsubpartG~read a~ rams: 55Li22 Emtsstons reporting requIrementsforStP rwislonsrelatlng to budgab far N& emfsshns.

(a] For its b ~ ~ p ~ r t SF revision under 5 51.121, oach Stab must submit ta EPA NOx missions data as describedin this sedon.

L * * * R

b) E~ch rnv'don must prowida €or pedodicreporling by the State of NOx omissinas data to demonstrate whethar thn Stale's amfssIons am consistent wiP the projections contahed in as a roved SIP submission.

%I ~nnua l repmting. B C ~ rovision must pmvida for annual reporting aF NOx ernIssIons data as fullaws:

[OTheStatsmustreport1aEPA srnbsIons data from all NOX saurcB within tho dato for which &o State spedhd control rnmmrcs in its SIp mbmision undar § 51.122 [91 nf ib is parl ThIs would include all sources for which tho Stata has adopted mousums tbat &flor h r n the measures incarparaled Into Ihe basdine invantory for thn year 2007 that tho Stale dovdoucd in accordance with 5 51 .I&).

data la EFA annuaIly pursuant to B Iiil If sources mpnd NOX omissions

tmdSng pro- approved under 551.121@] or ursuent to the

otsubpart H of40 GFR part 75, then tba Statnnnad nnt provide emu81 raporting t n EPA forsuch sources.

f2] Triannial repodrtg. Each plan must pmvide for !riieanIal Ih., ovary Lhird year) reporting of NOx amissions data fmm d sonrws wihh the Slate. (3) Tha data availabilily requbmsnts

in 5~1.1'11i must bo fdlowod for all data submitted to ment thn requircmonts of pmgnphs @](I] and (2) ofthissechn.

[e) The data reportEd fn paragraph [b) of M s smtlon for statlonaty point sou~cp5 MUS^ meet t E r ~ following minimum criteria:

61 For annual data reporting pllrposes tha data must ineluda tho following minimum olomonts:

(i) Invsnlory year. [HI Sfate Fedeml Infomatton

Placement System coda. ( I N County Fuderal Infarmation

Plawment S stem mda. p) Federa3 code Iplpn!]. v) Federal ID mde [ oht).

[VI) Federal ID code f rocess). fvii) Federal Dl coda [tack]. VlIIJ S I h name, fix] Physical nddross. (XI see. [xi) Pollutant coda. [XrP O z o n ~ soasan dssions. (xiii) Arm designation, (21 In addition, the annual data must

includa the folIowb minimum elements as applicable to the emissions drnetion methodolo

(i) Fuel heat mntenfl~nnual,, (ii) Fuel heat wontant (seasonal]. iiil Soms of fuel heat content data, t iv l Activity Ihron hput [annuall.

Activity througjiput (seasonal). [vi] Snureo of acttvItyAhmughput

moaitwing un rl repotting requirsmannts

data,

Mil Spring thmughput (%I. bi i l ) Summer throughput (%I. b) Fall thraughput (%). [x) Work weekday ornisshs. [xi] Emissfon factctr.

S o u m of emission factor, [xW) Hnur/day in operalion. hiv) Operations Start time Four]). [xv] Dayiweek in opmtion. [mil WoeWyear in opemtiun. (31 Tha t t i a d a l invontorias must

includo tho loUowIng data elemants: [i) The data mqufrad in paragmphs

[cltzl and Icl[Zl ofthis section. [a) X coordnate (Iongkudo]. [in) Y coordinate [Intitudo). (iv) Stack hnIgbt (VI Slack diameter. (vi) Exit gas tamperaturo. [VU) Exit gas velocity.

(IXJ SIC. (x) Boihrlpmcess throughput design

(xB1 Maximum capadty. [xiii) Primnry cnnhol efficioncy. [xivl Secondary control efficiency. [xvl Control buice t e. [dl The data raportad% pmgraph ml

orthis seetlon far nun-point sources must Jndudo tho fohwing mlntmum olemouts:

(11 For annual hvenkries It must include:

[i] ~nvontory ymr. [it) Statc FPS cado. 1%) Caunty FPS cod&

(viii) &it gas flow mf0,

(iVlSCC. - Ivl Emission factor. (vi] S O U ~ of emission factor. (vii) ActivityAhrtlughput level

(vK] Activity tbrPughput love1 [annual).

(x) Spring throughput [%I, [xi? Summer tamughput [%I. (xi11 Fall throughput I%]. [xfii] Contml saciency I%). [xw) PoIIubnt code. [xv) Ozone season amisshnr;. [mi) Sourco oromIssions data (XuiSI Hour/day In oporation. (XvrS] DayIweokin oparation. (Ax) Weddymr in operations. {2] llto trionnfd Invmtories must

contain, at a mhimum, all the data rcquircd in pmgraph (dl[I) Offthis S?cliO2l,

(e) Tho data reported In pamgmph [bl of this sectlon for mobile sourms must meet the following minimum dteria:

inventnry purposes, the folhvlng data must bn mportcd

[I] For tha annud and kiionnla?

[I) Invantory year. (ii) Slatn FlpS cudu.

25318 FedaraI Rcgistsrf Vol. 70, No. CiIIThursday, May 22, 2005/Ru1es and Regulations 1

Iiiil County FIPS cadu- Iivl scc [VI Emission bctor. [vi] S o m of omissfon belor. [vii] hctivily (this must be reported

for both highway and nonrond activity. Submit nonrmd octivity In the form o l &ours oladivity at staadnrd load [aither full Iaad or averago load) for each enghna type, application, and borsopovrcr ranga Subrnft highway activity in th brm ohehfda milos h v d a d VM'I') by vehicle ~ B S S on each roadway t ypa Report Ito& highway and nomad nctivity fora t renl m n o

EPA'5 dnfauk weekdaylwoekend aclivity ratio. If tho Ststa uses B dmmnt weakdnylws&und activity ratio, rmbmit sapamto aetivIty love1 Information for wmkdoy days and weekand days.)

(viii) Sollreo ofactivity &la. [i) Pollutant wdo. [X I Summarwdrkweakday omissions. xi) 0Zona ScaSon nmlssiom. xill Saurce of emlsdaas d a h 21 [Rasewed,! €J Approvnl of ozone s8ason

dculation by P A . Each Stale must submit for WA approval an example of the dculation prowdurn used to dculate ozonB 5 w a ernissbns dong with sufficiant inbm~tioa Tor EPA to vorifv ibn almulaled value oFozoae

saason wadday day, if ys; B Stab usos

scasnn omissions. Beporting sehcdulcs. (11 nata

mlIeEtion is to hcRin during t h ~ mono seasonorm year piior to thaStata'5 NOx SIP Call complianca data,

(21 R Q ~ O I ~ S am t o bn submitted occordlng to paragraph PJ) of tbis soelIon and tha schudulo in nbla 1. Aftor zona, kiennid rnports mo to be submitted overy tbird y ~ a r and annual r ~ p ~ ~ t s are to bu submitted ea& year that a triiPnniel repnrt isnot required.

TA6E I.-!kHEOUtE FOR S U B " G REPOFITS

[I] Statos am mquimtt ta mport omissions data in an dmtronie Format to EPA. Several options BM available Tor data ropoding. Stales o n obtain information an &a current Eormnts at tho following Internet address: Mpd/ wnv.ep-gov/ltn/chieJ by calling the EPA I d 0 CHIEF heIp desk at (919) 541- 2000 or by sending an omall to info.chie@epa.gov. Bemuse deckoak reporting tnchnology conmually changes, States am to contact the Emission hvontory Group [HIG) lor the latast spccitic formats. (2) For annual raporthg [not for

trionniai rUPOrtS?. a Stah may have satvces submit the dola directly to W A to tho axtont the sourws am suqnct LO a tradhg program that qualifies for epprovalundor 5sl.lz1[qj, and tte Slat0 has aEresd to scmpt data in this format. The EFA wit1 make bo& the saw data submitlad in this format and summwy data avdlablo to any Stato that chooses thfs opUon.

(i) Dejinftions. Asused in thissectton, ihu following words and t a m shal I havs tha meaniags sot forth bdow:

(11 Annud ~m.Mons . Actual omissions Far a plant, paint, or pmeess, Bither measumd or dculatod.

(21 Ash mnnienf. lnsrt r d d u d p d o n ofa fuol.

(3) Area designatfm. The dwiguafIon ol the area in wMch tha reporling surm is Ioatod with regard to tho ame NAAQS. This would inchdo attdnment or nanattainmmt dosignatinns For aomkinment designations, &e classification ofthe nonaltainmont area must be speciliod, Le.. fmansitionnl, mwinal, modorate, ssttous, s w m , or axtrerne.

(41 Bohr dean cupaelly, A meamm of the sko ora boiler, bastsod on tho reported maximum wntinuous steam flour, Capacity is dmlatad in units of

(11) Exitgps vehciiy. Numeric value of an oxit as straam vohcity.

thoughput for tho 3 WII rnontlls [Saptsmbcr, October, Noumber]. Ths rapresank tho axpression ofannual activity Momation on the basis offour seasons, typidly spring, s u m o r , fall, and wintar. It an bn roproseatd either as a porcenlago aftha annual adivity [e,s., productian in summor is 40 pcrcont ofthe par's roduetIonl, nr in

out of 600 units producod, spring = 150 unilis, summar = 250 unils, fall - 150 unils, and winlsr = 50 units).

I131 Fedem1 ID code [phnl]. Unique codas for B pIant or facility, conlaining one armom pulIutant-amittlng sources.

(141 Ft?dm/1Dcrrde [poinr). Uniquu c d e s for h POI& ofgmemtlon of tldssfofls, typldly tt physid picco of

[121 Fol7lhrOLlghpul1%1. Portion of

tams of tho units or i% Q activity (e.&.

ui iq ia maos for &e paint whero emissions from ona or mom proc~sses are ralo~sod into the atmosphcro.

(16) FedemlIn onnulion Haccmcnt

numericcod= developpod by !ha government i o Idantily Statos, counties, tams, and townships for tho entim Unitod Slatas, Puorto Rim, and Guam. (17) Heof urntent. The thermal hoat

o u q y conlent ora solid, liquid, or gaseous fual. Fuel heat contont Is iypIcally IIX ussad in units oFBtuflb of

atc [18l Hdduyin opemlions. Hourspor

dn thattha omittingproces5 opomtes. &9) Mrunmum dmgn mle. Maxlmum

fuel us0 sate band on the equipment's or pmcm' physiical size or oparationd ta abilities.

pZ01 Mmimum nnrnoptnfo mpmi m a a m oftha size ora gonorator w FA ich is p t on the tmit'snarneplnb by the manuhcturor.Tha data olnmont i s reportd in mapwaits [MWl ar kllowatis P I . (21) Mobile sum@. A motor vdicle,

nnnrrrad ongino or nunroad vehicle, tvhoro:

til Molor vehIcla means any sol€- pmpC1IEd vebkh designed for tmnsporhg parsons ar propcrty on B skeet or highway;

combustion ongino (ineluding !be €ut4 systam] that i s not wod In 8 mntor vnhkle or a vohiela used sololy fur compotStlon, or that is not subjact to standards promulgatod under section 111 or section 202 of b e CAA;

that Is powuredhy zi nonmad @ne and that Is not a motor vahido OP II vehicIa wed solely for cmnpetfion,

System [FIPS). T l e system oluniquo

fuel, Bhhg ar of fud, jouleskg of luol,

(ia Nonroad englne rnw an InWrnal.

[Ut] Nunmadvehicle means a vehicle

25320

under thk s&on on only EGUs, the State's Annual Nan-EGU NUX Annual EGU NOx Budget for the Slata ReductionRequirament shrill equal or shall not exceed tho nmount, durrng the exceed. durjng h a appropriate periods. indiutod pariads, spodfiod in thn amnunt datamind in mmdanee paragmph (o][z] ofthis section,

(ii) Tho Annual Non-EGU NOx Reduelion Raquimment, ifapptmble, 15 Of imposing FmBmPh dafined tha total amnun1 of NO, EGUs and non-EGUs, then: amlsslon roduetions that !ha S t a ~ dmonstratw, in accordam w i h paragraph (g) of this section, i t will achieve from nun-EGUs during &B appropriate pedod Ifthe Stat3 moats therequhments of pnrngtdph Ial[1) of this section by imposing cuntml m e a m on only non-EGUs, than tho

Rderd RegisterIVol. 70, No, WThursday, May 12, 2005lRuhs and Regulations

m) Tho Annual EGO NCX Budget shall not mceed. during thn indicated periods. the amount spdlied €n pamgmph (e)I2] of this section plus fin amount ofthe fmnunI NOU-EGU NO,

paragraph (e][l][iii](A) of this scction Tor tha appropriato poriad.

121 Fora State that complies with the requirements of paragraph [aI(l] of this section by Imposing cmtrol rncasurcs on onIy EGUs, tho amount o f h Annud EGU NOx Budgo!, In tons of NOX por ymr, shall be as foBows, for fin indimtad State for the indimtad pmiud;

T P P ~ (eMl orthb seetion4

maasurns saction bn& (IiIPIfa lata meek &e requirements Reduction Requirement under

{AI The Annual NonZGU NO, Reduelion Requirement shell equd or excacd tha difference betweon tho amount specified In paragraph Ie)[z) of this section for the appropriato period and the mount ollhe State's Annual EGU NOx Budgat specified in the SIP revision €or the approprhte podad; and

Qale

(31 For a Stato thnt wrnplies with the raquiraments o€pampph [al(il OFUS sed ion by imposing watml meaami on o d y aon-EGUs, th amount of the Annual Non-EGU NDxRaducthn R q u h m n t , in tons of NQx peryaar, shdl be dsiarmlnud, far the Stato for 2009 and thereakr, bysubtradwg the amount of tho Staln's Annual EGU NDx Budgct for the appropriate year, spnEified in pamgmph lel[2) of thk seetiou horn the amount of the Stato's NOx has8Iins EGU emissions inventory projected far the appropriate yaar, $p&ed in T&!a 5 oE 'Xegional and State SUZ and NOx Budgets", March 2005 lavaflable at htlpdlm,,epo.gov/ chdtinfastufem?el,

(4)[1) Nohvithstnnding thasiate's obligation to comply with paragraph (B)[z) or (3) ofthis saction, the Stata's

SIP mvision may 0lIow sources mqufrad by the revision to Implement control measurns to dmonstmte compliance using d i t issued h m the StaI~'5 complianee supplement pool, as set

s e c ti o a. forth ~a p w m p h ~miiiii orthis

tiil Tho Sta!o.hv-Slata amounts of thn

. - . _.

Compliance supplement

Pol tU,166

0 8,335

<a397

20.155 6,Qm

14,935

69,020 14.4

99.445 66,321 7@30

108,935 32692 =205 35,512 27.724 65.304 31.445 17,807 59,871 45,617 621 83

r o a . 6 ~ 99,049 328662 5D37a

10I.Ot4 36.074 74- 4WsS

[iii) Tho SIP reulloa may pmvido €or &e distniulion of medlts from the cnmplinnco supphment pool 10 s o m e 5

Federal ReghkrlVoL 70, No. gIIThuaday, May 12, ZQOSIRules and Regulations 25321

that am r q u h d to im lement contrul

follow3ng two mocbnisms: Slate rPRy h U e Crd! from

cnrnpIIanco sup Iomant pool to SOUKCS that am mquiregby tlu SIP revisiun to ImpIemnnt N& emission control ~ E ~ S W B S and that impIemmt NOx emission reducti om in 2DO7 and 2000 that mu nat necessary ta compIy wih any Slats or fpderal missions Iimitatim appI!clblB at any time during such years.Sueh a soutce m a y b ismed O D I ~ a e d k from the cornpk?nca SlIppI8mHll pool for each tan ofsuch a m i s ~ b n reductions in 2007 and 2008.

(11 Tha Sbto shall wmpIeto tho Issunncs prnwsby January I,2010,

[z] Thha embsinns roduetrcns for which madits am h e d must bave bcan domansbated by tho ov;netS and opcrators d t h a 6 0 m So bave o c m d durlng20D7 and ZOO8 md not to ba neccsiry to comply with any anaplbbh State or f o d d smhsions

mwsures using one or i 0th uf tba

[A)

IiZitatIun. (31 Tho omissions rnduclIons for

credits am issued must havo hnen qumtifiod by the ownm and apentors of the smrco:

[i) For EGUs and Tor fossf~-lud-firod nom-EGUs t bn t aro bpilprs or combuslion turbines wIth a maximum dasi heat input greatarthim 250 mmButl$E. using omissions data dotnrmined in aceordance- witL subpmt H af part 75 af &Is chapter, and

(13 Far non-EGUs not describnd in p ara-ph [el [41Iiiil [AI I3 I [I 1 of this section, using emIssIons dsla dstorminod In accordance with subpart H ofpart 75 of this chnplor or, if tho Stale demonshins that momplimeo withsubpnrtH nfpart 75 afthischap!or fs not pmctlmble, determined, fa tho axtent practrmbh, with the s m o dUgr8a of as5uranca with which emIssiuns data ma determined For souices sublect ta

appmvnd provisions for an omissions trading program. the u w n m nnd operators afsoums !hat receive mdit according to ilm requtmants o f this paragraph may transfor the credit ta athor sources or pmons accordiag to the provisions in ths emissions tr;tdin~

the iomp~inneesupploment p o l to sources &at aro required by the S i P revidon to implement N& emission eontroI meassures and whose owners and cpomtors domomhato a neud for BII exfendon, boynnd 2u09, or the deadline for the SDWM €or hplomenting such emhlon controls.

( I ) T ~ R Statestall complete the issuanw mocrss bv lanuaw 1.2010.

[2) Ths Stateshall Issue credit to a source only ifrhe o w n m and nporatnrs of hhe sotuca damonsimto that:

(fl Fora s n m used io generate ebctriclty. impImcnMion of the SIP revision's np licrthlo mntro1 measures by 2009 woufd weate undua risk for tlie rohbiiity o€ the eleetricIty supply. Thfs domonstmlionmusi includaa showing that it would not be feasible for the owners and epwators althe s o w to obtain a sumcient amount of ellselridty, to prevnnt such undua risk from ohm electricity genmtian facilities during rho bslallallon oreoatroI tachnoIogy at the spurn nnccsssnry to wmply with tho SIP*revlslon.

(10 For a SO- nut usod to generate electricity, compIianca with tlra SIP revision's appleable contml ~ S ~ S U T B S hy zoo9 would create unduo risk fartha som or ils assmiatad Industry lo a degm !hat Is cmparabla to t h u risk described in pamgmph fe)(4](Lii)@)[z)[i) ofthis saction. {Ufl This demonshalion must includa

a shnwing that it would not be ptrssiblo for tho source to comply with applicabls conk01 measw~~ by ublalning suficiont m d i k under paragmpb (el[4)[iIi)[A? OF tbis s ~ ~ t i o n , orby aquiring sufficient mdits horn other sources at pmons. b provent mdue risk.

(0 Each SIP revision rnmt sct roorth wnml m e a s w io meet the amounts specifiod in p a a p p h bl oftbIs section,as apphbls , InchdingthQ fPllPWiII -

(1) A L i p t i a n of anforcemeat mcthads including, but nnt limited 10:

(I) Procedures for modtoring C O S I I ~ ~ E U ~ ~ ~ with each oflha solecled contrd rnopsuros;

(ii) Praedures for handling violatiam; and (MI A desiptton of a g n q

responstbiltty for enfascornant af im lnmentalioa,

&i) u a stat0 o~octs to impose control measms on EGUs, then r h o s ~ mamum must impose an annual NOx maSs emissions a p on all such sources

adopt alternative requlrcments that Pnsure that the Stalo wfll camply with its requiromonb undor paragraph [e) of tbSs sectlon. as epplicobh, In 2009 and subsequent p a r s . &][I) Eech SIP revision that contains

control mcasums covoring non-ECUs as part orall of n State's obligation in moetfnE its rcquirernont under paragraph [a)[l) of this section must dornonstrate that such control measuros m sdcquato to provide for the timaly carnpIlanca with tho Stnlo's Ahnun1 Noa-EGLJ NO, Reduction Requiromont undor paragraph (e) of tlrb stxtfon and am not adopted or impIemontcd by tho Stato. as of May 12.2005, and am not adopted or implommtod by the Federal government, as ofthe d a t e d submission of ihn SIP revision by tho State to EPA.

paragraph (gl(1f of this section must includo tho folIowing, with respect io each sourco category ofnon-EGUs for which the SIP rovision raquires contxol

(21 The demonstration undor

the sou& ~atago-iy in a rapresentaiha year mnsisthg. at tho Shte's ulccfian, of 2002,2U03,2004. or 2005, or m avemgo of 2 or mom of those gaars,atsent the conk01 mmswos s p ~ c i f i ~ d in t h o SIP rOViSiOIL

[A) This Inventnry must ropresont estimates of actual emissions based on monitoring data io amrdanca with subpart H olpart 7E oFthIs chaptar, if tho sourm category Is subject b monitoringrequIrsman!~ in accordance

chnplur. (D] In the abseaco of monitoring data

in acwrdance with subpartH ofpart 75 of this dhaptat actual emIssioas must bo qu~nt i l~d , to the maxhum exlcnt praeticablo, WiUi tlte same degree of assumnc~wIth which emissinns aro qudiacd for s o m a s SubJeet to subpart H OF pate 75 of this chapfar and using source-specific or some-ategory- specific assumptions that o m m a SOur~n's of SOUttS category's actual omissions BTO not avomstimatad Ifa Stata USE Factors to cshato Bmisslons, pmduction urutilizotion. or fiaetivenas OCwntmls urntles far a s o u m otegoq, such h c b ~ must be

wifi subpat n ofpart 75 orwi

- in tha State.

fii] l fa State elects to h p o s a wnhl mcmres on fossil fuobfired non-EGUs that are boWs or combusdon turhines with a maximum d d g n heat inpui greakr than 250 rnmBiu!hr, then those measures must impuso an annual NOx mas5 emksions can on at! much souras In tha State.

Fki) If a Stat0 ole& to impose contml meas- 011 non-EGUs o t h r than tho68 dEetibod in paragraph [€)[~llii] of this section, then maasuros must impose EUI annual NOx mass omissions mp an 9 such suurcm in the S b t ~ or tho %to must demonstrata why such ernksions atl Is not pracfhblo and

chosen to e~lsuro that omissions BIB not

[C] For masums to reduce omissions ham motor vohkles, omission usfirnates must ba based on an amissians modd that bas been apprwed by EPA for uso in SIP development and must be consistent with the pIanning nssumption~ % d i n g vehido miles

O V R d m & d

25322 Federal RegisterlVol. 70, No, 9l/ThuFsday, May 22, ZOOS/Rules and Regulalians

trevolad and other factors curront a! tho tImo o€tho SIP dfiuoloppment. [D) Fnrmomrm 10 reducn omissions

from nonroad ongines or vehIcIes, emission d h a t m mothodoloaies must

NoKmass emissions from the so& category in the yam 2008 and 201% nbsant tho con~lmea5ura5 spneifipd in tho SIP rovisbn andreflecthE changes in theso amisduns horn tho historid baselhayear to tha years 2009 and 2015, basad on projectod changes in tho production input or output, population, vsMele muas travdcd, eeonomfe nctivity, or other factors as applicable to thlssourco mtcgory.

[A) Thaso invonlorics must account for implomantatfun d a y caatrol measwas that am othenvisa 18 uired by

May 12,2005, or niopkd or itnplemeniod by any federal agency. as of he dale orsubmkdon of &ESP mviston by the State to EPA, and must axclude any control mcaSutoS spoclfiad in the SIP revisIon to meet tha NOx missions toduction requiraments of thk section. IBI Economic and population

forecasls must b8 as specific as possibla to tho applicable industry, State, and county of thn soww or source ategory andmustb consislent withboth nationd projcclions and relevant offidal pIannIng assumptions. including &hales 01 PO latton and vehiclo milcs trnvdad EvaIoped through consullatioa hotwoon Sfatc and Io& transpurlailonand air quality agenciss. Howover, if thoso omelat planning mum tions am inmnsistant witt

pDpdatIon or wllh energy cnnsurnpthn ProjedDnS contained in the US.

tevision must make adjustments to comct the lnconsIs~ncy or must demomh~e how &a oKcial plamting assum tIms am morc B P ; E U ~ ~ ~ R

(c) B e s e invontmiesmust account for any changes in prnduction mdmd, mnisrials, fuels, o t eficlenc &at am oxpeded to aeetirbbatween &e- histodd basdine year and 2009 or 2015, as ap rapriafa.

A projottioh dNOx m a ~ s emisdons ID 20D9 and zuf5 hnm &a source calegory assuming rho same projected changes as wider pmgraph @I(Z)[ii] ofthis saction and w l t i n g horn implomentalinn of each o€ Lho wnlral r n E a S w specified in ?he SIP revision.

(A) Thcsa inventorios must addrsss the possibility that the Stata's now control 1nc~5ures may OUSB pmductim

rid mi= already m m u ~ g d , as of

&cia P US, Consus projections of

or utilization, and ern'kisiom, to shift to unregulated or hss slringontly mgulotad s o u m In !he 51)um category In 40 same or a n o h m Slate, and these invantories must include any such amounts of emissions that may shift to Such othsrsources,

[8) The Sfale must providn EFA wi!h a summary oftbe compututians. assumptions, and judgmnb usod to l t m i n e thn dagtee ofreduction in profectetd 2009 and 21115 NOx omissions that will be achIoved from the implemantatim olfha now control mmsums cornpad to the rdevant basolino omissians is~vmtoy.

[ iv) The result olsuhlmocting the amouts In parap h [sl[zl(iii) ofthis snction ~orznD9 ani ZoIs, raspectlvely, h m the Iowar of hho amounts in p m p p h fslI2lIil or O[zl[iil of this section fm2009 and 2015, mspadivoly. may he craditod towards the State's Annual Non-EGU NOX Reduction Requirement In pnragraph b191 oE U s section forthaappmpriate pmiod. [VI Each SiP rcvfslon must ldantlfy

the L D U ~ S of tho data usod in with estimata nnd oath pmjccrioa of amissBns.

wilh §Sl.llS (regarding data avaf le biIity]-

maniloring the s b h s of corn lianco

moot lhho State's mquimmonts uud8r pamgm k (el ofthis soction as follaws:

(I) d e SIP ravision must pravido for logally enforceable procadurns lor requirtag owners or operators of staiionary somas M maintahmeards o€, end sriodjeally report to tho SMQ:

emIssicns from the stationary sourens;

Other inkmation as maybe n m s w y io anable the State to detwine w h o h the sou~cas are in complianca wilh applfcabIs p ~ r l f ~ n ~ of the conkol rneasuras;

(2) The SIP =vision must comply

mspnction, mforcernent, ond corn lsint51;

l a f ~ t h a SIP ravidon eontatns any transportation mnhl mBBstlMs, t h a n tbeSP rewision must comply with 5 51.213 (regarding transportation wntxal maasluusl;

[4)Ii) If tho SIP revision contains measures to aontrol EGUs, thon tho SIP mvislon must rsquim such sources I o comply with the monitoring, remrdkmping, and reporting provisiuns of sub art H nf part 75 OF this chapter.

nil h m SIP ravision contains measum to control r o d f i c l - b d non- =Us that are boilers or mmhustion

[bl Each SP revision must comply

(0 Ea& SIP mvision mud provida for

with any wntml rnea~ure~ a s opted to

r P t ] m omstion on the amount of NOx

yi& §SlmZlZ (mgdhg tasting,

turbiieswith a meximum desi n heat input greatar than 250 r n m ~ t J L , &on t h ~ SIP ruvision must rc uire such so- to cornply with %u monitoring, r6cordkaephg. una ropnrting pmvisinns nfsub xt B or part 75 oSthis diaptar. I" ui] 5 flho S P mvision contains

mnasures to contrd any other nun-EtXs that nro not dcscribod in paragraph [i)[4][iI) ofthis sodbn, &an tho SIP rauislon must requira such sources ta comply with the monitoring. recordkespIng, and mporling provisions of subpart H of part 75 of this chapter. or thn Statu must domonstratn why such roquiromcnts am not practiwblo ond adopt nltornnllvo m uiroments that

raductions will ba qusntlhed, 10 tho maximum oxientpmetimbla, v A U ~ tho same degreo of assurance with which nmissions am quantified for sources subjmt to subpart H of part 75 of this &a tor.

[if Each SIP ravlston must show that th Stato hm legal authority to cam out tho SP rovisinn, including authority to: [I) Adopt nmksions standards end

Limitations a d my olbar mcasurm

maintonanm of tho Stpta'5 mlavant

Nan-EGU NOx Ruduetfon Re uiromrtnt.

msuw &at the requ s red mlssIons

ll8CQSXTJ' for Ottn~l'tInOnt and

Annud EGU NQx Budgot of t h ~ Annual

es applicable, undar paragrap % {a) OF

re&ln&ions, anxstandards and seek injunaiva mhf ; (3) Obtain informatinn necessary to

dotermhu whothcr air polhution sourcos are in compliance wlth a pltcable laws, roguleiiom, and stand&, including authority IO rcquiro rccotdkoeplng and io make inspmtions and conduct tests OF airpohtion sources; und

[g][rl R e q h owner^ or openton of stationary sources to install, matntain. and use emissions monitoring devIees and to make periadicmports to tho Stata on the nature and amounts ofemIssIms fmm such stationary awrcas: nad

(ii] Maka rho data deseribod in pmpaph (j)W[i] ofthis reelion availnbIo to the publicwithh a reasonable h e aRerbehg reporbd and as comIatad with any npplbbla emissionsstnaduds or hmltptions. fi](l] Tho pmvisions af IPW nr

tegulation that the Stab doteminas rnvIde the authoritras required under

%is sedan mustbe spe~t im~y idonlinod. and copies dmch laws or re&.tionsmust ba submitted wllb rho SIP revkhn.

(2) Legal aulbprity abquato to fulfill the requirements OFpamgtaphs @[31 and (41 of this soction may be delqaled to tha Slate undorsdon 114 of tho

Fdoral XegisterlVol. 70, No. 921Thursday, May 12, 2005/Rulas and Replations , 253 23

(1](1] A SIP revision may assign Icgd authority to Ioeal agencias in amrdanw with f52.232, I21 Each Slf revisSon must compIy

with §51.240 (regarding general plan ra uiromants).

with §51,280 (regarding resourcesj, [n) Each SIP mvhf on must provlde for

Shto cornplIanec with the reporhg re irements in g51.125,

%[I] Notrvilhstanding any olhw pmvisfon ofthis saction, if a Sbto adopts regulations substantirolp identical to sub arls tU thmugb T i of part gti af this $aptor (CAR NO^ Annual TradIng Program), incorporates such subparts byraleraco into its reguliiffous, or adopts roylations that diffor suh5tantiveIy from such subpa& only BS sat forth In paragraph (01[2] of thb SPE~~OII, than such emisdons t m d i i program In !he State's SP revisian i s automatidy approved as meeting tho mquiramoats of amgraph (el olthissec~Ion, provided %at tha State has the legal authority to takasuch oetion and to implement Ik respomlbilitios undor suclx rcgulatIons.

I21 Ifa Stata adopts an missions trading program that diKers subshtivnly fmm subparls M through II of part 06 of this chapter onIy as f011ows. thon the omissions trading program is npprovod assat forth i R patagmph [01(1) ofthis scctlorr. [i] Tho Statu may dedine to adopt the

CAlR NOx opt-in rovbions oE (A] Subpart II a~tbfr part and the

provisions nppplicabh anly to CAlR NO% opt-in units in subparts AIl thmugh HH

?m) Each SIP anvision must carnpIy

of this pnrt; (31 Section 96,388fi) of this chapter

and Iho amvisions ofsubanrt EI ofthis part appUmb1e only to C h NOx apt- in units under 5gfi,l88(bk nt [C] Section 96.1a8[c) ofthis chptnr

and t h n provisions of subpart II ol this perf applicable only tu CAiR NOx opt- in "1'5 undar §Il6.lOB[c].

[ii] The Stnto may dcdha to adopt the allomtian pmvisions sot Forth in subpart EE orpart sa olthis chaptor and may instoad ndopl any methodology for allocathg ChlR NOX alhvanws to IndMdual source, as follows:

(A) The Slats's melhodotogy must not allow the Stah to dincale CAIRNOX nllowanars Tor a year in BXCOSS of tho amount in the Stab's Annual EGU NO, Budgot for such yew

(31 The State's n m h d u l o g y must require &at, lor EGUs mmmcncing oporation befora Jmuq 1.2001, the Stale will determine, and noti &a

olCAIR NO, allowances by October 32, 2006 far zoag. 2010. and 2011 and by October 31,2008 and Octobar31 of each year thorealter for the y w after the year of tha notitidon deadins; and

Tho Statu's mothadology must rcqulre that, for EGUs commandng operation on or after January 1,2001, ths State will detmino, and notify tho Admintstrator of, each unit's a l l a d o n dCAlRNOx allnwances hy October 32 ofthe year for wblch tho CAR NOx allowancw am allomtad.

[ 3 1 h Sbto that adopts an smissiolls ttading pmgmm Sn accnrdanca with p m p p h (o)[l) ar f21 of thIs section Is not raquired to adopt m omissions trading ptagram in accordance with paragmph [aa)[l) or (21 oFthis saction or 596J24[0)tl) or (2).

[4) X a State adopts an emissions trading program that d1Km substantively rrom subparts AA through HH of part 90 of this &a tor, other than BS sot forth in pampphk](2) Df this section, then such emissions trzlding prqmm is not automatically approved as sot forth in para mph [o][I] or [2) of

Adminkbator for approvability in accordonco with tha o h m provbfom of this saetian, provided that the NOx alIawatrms issucd under such emissions irading program shall not, and tho SIP rovision &all state that such NDx allnwancw shali not, qudify BS CAIK NOX alIowances OF CAIR NOx Omna Season dlawancos under any amtssions trading p r o p m approvod under pangmplls lo)['l) or (21 or(aal(11 or (21 ofthis seetlon.

Administrator or, each unit's a ?- I o d o n

this 5ocLlon and w i 1 be reviewed by tho

lpl IRasmedl (ql The State's 6lP ravision shall

#mMn control measures and dmonstmte that they willresult in wmpSiatlca with tho State's Ozone Season EGU NOX 3udgetr if appkabls and addwe the State's Ozona Season Non-EGU NOx Redudion Requirement, if applieable, for tho appropriate periuds. Tho amounts af t h o Stab's Owns Season EGU NO, Budget and Ozone Season Non-EGW NOx Reduction Requirernont sball be dotennlnad as f d O W 5 :

slate

[l][i) The Ozone S E U ~ P ~ EGU NOx Budget for tho Btatc is dcFmad as thn total amount of NQx amissioas from 011 EGUs in that State for an orona S C D S O ~ . if tko State meals the requirements of paragmph [allz) or this seclion by imposing control measures, at Ieasl In part, on EGUs. If the Stale imposes control measures undortbIs snction OR onIy EGUs, iha Ozono Season EGU NOX Budget for tho Stafe sba11 not oxccod tho amount, during tho indicated periods, spaeifiad in pamgraph (q][2] of this soctfon.

Iii] The Ozone Soosan Nm-EGIJ NDx Reduction RequIrement, if appkablo, i s dofined as &a told amount o ~ N O X mission rductrons that the State demonstrates, in ~ccordanca with paragraph (51 of Wi section, il will adiiava from non-EGUs during tho appropriate psdnd. If tIie Slats IIIQO~S tha requirements of paragmpli (alt?] of tbis section by 3rnposing cnntrol mo~suras an ady non-EGUs. then the Stab's Otono S P S O ~ Nnn-EGU NOx Rsductiun Rctquirement shal1 oqud or axceed, during the apprupriatn priods, tho amount dptmninod iu aeeordnneo wlth paragraph [q)[3) of thk section,

(iiIj Ea Shta rnents &a raquirements of paragraph (a)(Z) of hi6 soction by imposing cantroLmeasures on both EGUs and ann-EGUs, then:

(A] Tho Ozmo Season NomEGU NOx Redudon Requirement shalt E ual or oxccod tba dfforonro hetwnsn L o amonnt specified in paragraph [q][Z] of this section for tho appmpdatu puicd and h a amomt ofthe Stat& Ozano Season EGU NOx Budget specclfi~d in tha SIP rovidan for thn approprlata

(3) Tbn Omno Sman EGU NOx Budget shall nat excsBd, d d a g the Indicated p ~ r i ~ d s , the amount s p i h d in parpgmph [m) of ihis sndm plus the mount of tha Ozona Season Non- EGU NOx Reduction Requitemant under pmgraph (q)(ll(Iii](Al of this section

(2) For a Sbte h i complies with the requiraments ulparagmph [a][2) of this section by h m p ~ s i n g control rnausurcs on only EGUs, the amount o€the Ozano Season EGU NOx Budgot, NOx pur ozone season, shall be as fallovts, for tha hn$catedState for tho hndIcatod period:

pariod; etnd

for t h R B$p'OpfiRtR @ U d

tons af

25324 Fedcral Regisferf Vul. 70, Nu. 92/Thursdey, May 12, 2005/Rules and Regulations

Ozona mason EGU budget NOx for I 2004-2Qt4 I (Cis)

11515 255s

142 47,912 30,701 45,952 14,253 36,045 17.095 12,834 7,551

28,971 8,714

26,Sre 6,653

20,632 =,= 45,662 42171 i5249 22,842 15,994 26.859 17,967

budgal for 2015 and thematlei

1,855

39,926 I 11 ,M6 30,507 I 14.238 10,695 6.293

24.142

(3) For B St810 that Eomplies with tho requimmenb oFparapphlal(21 of this socdon by imposing control mensums OD. only non-EGUs, the amount d t h B Omnn Season Nm-EGUNOx Reduction REquimmont, In tons of NX per ozono s0a50r1, shell be dotennined, for the Stato Tor 2 0 ~ ~ and IhereaItar. by subtmcling the mount of tho Stats's atone Season EGU NOX Budgat for the apprnpriato year, spedflnd in pamgmph (0])[21 orthis section, h p m tho amormt of tho S W . 5 NOxbasolino EGU amtsshu Inventory projaded for the curno soason in the appropriate year, specified in TabIs 7 of "Rqional mid StatoSG and NOx Budgets", Ma& 2D05 (available

cleum-~n&stakrde), [4) Nohuithslanding t h e Statn's

abligation to camply with paragraph I@] or [3) orthis s ~ f f m , t h ~ State's SIP tovision may allaw sowas required by tho revision to implement NOx omission control m m r e s to demonstrate corn liance usin NOx SIP c a ~ altowances Acicatad mcL tho NOx Eudpt %ding P-m for any ozone season during 2003 thmu h 2008 that have nut been daduetadhy b g Administrator undor !he NOX BudgBt Trading Progmm, ifthe SIP rwislon omss1ues that such aIIowances wiviu not bB W&IJIQ fot SU& aaauclton under t h ~ NOxBudget Trading Fmgnm.

(r] Eo& SIP mvislon must sol To& contro1 m w u m s to meel thn amounts

at: hrtp:/fM.cpu.gov/

spncified In psragraph [ql ofthis suction, as applicable, iaduding thn

[I) A desctjptron denforcment mothads induding, but not limitod to:

G) Froceduw for rnanitoring cnmplranw with each af tho selectsd control measures; (ii] Procedures Tor handing

violations; nttd (IU) A desrgnatlon oFagancy

raspansibility Eormfoteemant a l implamenttation.

control maasnres on EGUs, then thase mc8~ures must impose an m n e s m o n NOx fnass emksians ~ a p on aU such sources in the slam.

[iI) Ea Stato ole& to impose a n h d m w m s on fosssll lunl-hed non-EGUs tbat are boIlsrs or combustion tuxblmm with a maximum desIgn beat input greatsr than 250 m ~ ~ , than h s e meaSureS must impose an ozoaeseason NOx mess ernissIoas u p an all such sou~ces In the Slate.

[iii) Ea Stab ebck to impose cnntral m m ~ s on non-EGUs olher b n ~ S B doscrihed in paragraph [r}[Nii) OE thLs section, than thos~ measares must impose an OZOJIQ stason NOx mass smissioas cap on all such sourccs in hn Statft or the State ntwt damonstrate why such PmiSSiOnS cnp i s not practIoble and adopt albmativa mquirernonls that ensure that the State will comply with itsrequirsmonts under pampph (q) of

f 0 u 0 wing:

@l[i) If a Stet6 OlWk to impOS3

U s section, as applicab1e. fm 2009 and subse umt ears,

[ S)[I f d I3 SIP rovisinn that contains control m c m a covoring nimECWs as pw or all of a State's abligntlon ln mnetiq its requlroment under pamgmph [a)[zl ofthissectinn must dornanstsato that such wntml meas- aro adquato to rovido for tho limely eomp~aneo wiLg tho scnte's m n n Saason Non-EGU NOx Redudon Requhmont undor paragraph Is] ofthis sectjon and am not adoptod or implemenled by tho Stale, 85 orMny 12, 2005, and aru not adopted OS implemnnted by ih8 f n d d govsmmont, as d t h o dah of submission of the SIP mvision by the Stata !o EPA.

p m p p h [sl(~l of this soction must include the folIoluine, with respect ia nach some catagorg nf non-EGUs for which fhe SIP mvisionmquhs contml

(z] T h damonstratmn undot

moxures: (i) A ddniled historical hsolino

invcntaw nFNOw mass srnissiuns from &e mu& eategiry in a mpresontativn omne soason cnnsisling, at the Stata's dacltnn, of tho wznaa season in 2QO2, 2003,2004, as 2Q05, or an avemge of2 ar mom afthoaa m o m soasom, absent the contro1 rnaasuras specihd in &a SIP revisian.

(A) This Inventory must mpmEtlt estimates of actual omIssi~ns basad on rnonitodng data in acecrdance with subpart €3 of part 75 a€ thh chaptar, if the source category is subjael to

Federal RegistcrlVoL

monitoring requirements In accordancn rvilh subpart N of part 75 nf thls &a tcr. & In the absanee of monitoring data in accordance with s u b p a H of part 75 orthIs drapler, aetud emissions must be quantifisd, to the maximum oxtent practiable.with the same degree o€ assumto with wikh omissions nre quantIfiad for sources subfcct to subpar! N of p a 75 of this chaptar and ushg sourc~spedfic or sourccalogory- specific m m p t i o n s that o m u s o m ’ s or sourm mtogory’s actual omissions am R O ~ overoshatod. I f f a

Stab USBS factm to & h a l e emissions, production orutlhlton. or effedvmss of conm1s or rules for 8 s o u m categoryl such facba must hn chosun to mum that omissions ate not ovorodrnakd.

[C) Fnr mcawes to mduco emissions horn motor vehlclps, emission =timales must be based on an amissIons model that has been approved by EPA forum h SSP dewlopmnnt md must be coasIstent wilh tho planning assumptions regarding vehidn milos traveluctand othathdoa cumat at tho t h e of thn SIP dmdloprnanl. (D) For m m t c s to roduce emissioos

fiom nomad snginas or vehicles. ernissfon cstimntas mthodologies must be a prOV8d by =A,

tiif A dstaihd badinn inventory of NOx moss miss inns from the so- mtesaw in ozone SOBSOIS 2009 und 2015, absant the control meastues specifiad in the SIP rovision and rofleciing changes in t h ~ omissions &om tbn historical L x l m e omna season to the ozone seasom ZOlM and 2015, based on projeckdchanpsh tho production fnput or output, population, which miIos trawled, economic activity, or o h r factors a5 appliabla to th issom category.

(AI Thwe Inventories must account ior implementation OF any wnml measum t l a t am adopted or ImpIernonhd by the State, asof May 12, 2005, oradopted or impIernentad by the - federal g 0 V ~ 8 n t l as oF&e date of submission of the SIP Tovision by tho Sfeta 10 EPA, and must d u d s any control m a s u m spedfid In the SIP revision in mCQtthB b!Ox amIssIons roductron requirmonts of this sedion.

[B) Economicand population lorccasts must bo as spocific as possible to tho applimb1e industry, Slato, and county ofthe s o w e or mum catogory aad must be consistent with both national pmJections and rdmnf &cid phnning assumptIans including a s h a t a s of po ulatioa end vehicle

mnsulteh~ hetween State and r o d transpurlation and air quality agencies.

milas travelcd s evaloped through

70, No. 91IThursday, May 12& ZOOS/Rulcs and Rugulations 25325

Horvevsr, If thase olfcial planning meal tha Stato’s requirements under assumptions are Inconsistent with p n ~ ~ p p h [ql of &Is section os fallaws. official U.S. Census prujections of (11 TheSIP rovlsion must provide for popputation ar with cnmgy consumpffon Ingdly nnforwable prowdurcs for profecuons contained in an U S requiring owners or operators of Department oFEnmgy’s most recent sladonnry s o m e to rnaintaln rocords Annual Enorgy Outlook. then the S1p of, and poriodidy repmi to tho Slate: mvisim must make adjustments to (i) Infomation on the amount oINOx mrroct h a inconsistency or must emisduns from tho stetianary sources: damonstrata hnw the oEcia1 planning and assumptfons ara morn accltrafa (ii] Other informntion as- may bn

(C) Tbwe 1nvmtorIas must account necessary to cnobla tho State to for any changns in pmductlon mehod, detarmina whohor tho sourcas am in matarials, fuels, or emdsncy that am compIiance withappllcabln poflions of Bxpected to OEEW botlvocn tho hstorhl the control mcpsuw: k c l i n o ~ ~ o n s s e a s o n and OzOnB SEasOn [2) Tho SIP rovkian must comply 2009 or ozone soason 2015, as with § S l , Z l Z ( rqading tEslIng, appropriate. ins pedion. enforcflmont, and

(iii] A projaetioa olNOx mass complalntsl; omissions in omne season 2009 and (3) Ifthn SIP rovislon contains any ozonBsoI1son 2015 fmm the source transportation wntrol m m s w , than c n i e g o ~ assuming thesame projeetad tbo SIP revision must comply with chnnges as under paragraph (s)(z)[itl of 551.213 (regarding transportation rhis section and r e d i n g from control measurns): implamantation of each orthe control [4][1) If tho SIP mvision contains mcasures specified In the SIP rwisloa. m o w to wntmI EGUs, thpn tltn SIP

(A) Tboso invantnries must address rovision must require such SOLI~CCBS to tho pnssibiIity &at iho Stnb’s new comply with Lho monitodq, eontml moaslves may causa production rewdhoping, and roporthg prodsfons orutilizpiInn, and amissiuns. io shift to of subpart H of part 75 of this dwpfar. umgulatsd or Iess stringontly regulated [a) IfLe SIP rnvision wntafns snurc~s in tho source category in tho measures to mnkol fossil fUnl-Fmd nom Same or anolher Stat4 8nd theso EGUs that am toiIes or combustion jnvontoria must indude any such turbines w i h a m d m t l m design heat amounts oremissions that may shift to inpukgreater than 250 & W r , than Such O ! h SOUKEBS* tho SIp revision must re uira such

(B) The Stab must provide EFA with s o m s tu cornpry with %e monitoring. asummary of ths compuhtions, recordkeeping, and mporting pro~Mnm mmptiuns, and judgments used to oFsubpnrt H of pmt 75 of this chaptor. detedaa the dcgw of mduction in I%] If&o SIP revision conlains projected OZMB season ~001) and ozone measuros to contmI any othor non-EGUs seaSon 201s NOx amissions that will be that em not domibed in aqtaph achhvad Imm the Implemontadon of [u][4](3} OF his section, I&, the SEP the new control measures compared to revision must reqllim such SOUTC~S ta tho rdwantbaselino omissions comply wIth tho modbdng, inventory. recordkeoping. and reporting pmvrSion~ (h] Tha result of subbcthg &e ofsubput H of part 75 of this chapter,

anmunts in paragraph (s)@](tii) of thrr or tbo State must demonsmto why such s d o n for ozom season 2009 and omno requiremaais aro not practicdh and 5mm 2015, raspectively, firom the adopt aItamatIve requiramenk hat lower of the arnuuats in paragraph onslue that the required emissions [s][z)~] or [s)(Z](fi] dthk section for rnductians will bo quantified. io !he amna season z O D ~ and ozone season maximum exlaat practbble, with tbu 2015, ~ 8 5 ectivdy, may be m & b d same degree ofassurance with which towards i!& State’s Ozono SeasonNon- emisdous am qusntifiod iarsourcm ECU NOx Redudicm Requirement h subject ta subpart H ofpart 75 of this pasap@ (q](3\ D ~ & € s 5ectI~n for the chapter. appropriate pano+ (v) Each SP mvisIm must show that

[v) Ea& SP rsmmn must identify tho Stato hm rep1 nuthnfity to out tha sources of the data used in each the SF revIslon. IncludinE authority La: esmata and Bachproiaction of [I] Adopt emissinnsstandards and e mh s f o n 5, limitalionr; a d any othormoasW

[t) Each SIP mvhion must comply ncccssary for attainment and with §51,136 [reprding data rnaintennnca ofthe State’s raluvant wall hi lity] . Ozone Season EGU NOx Budget or tha

tu) Each SIP revision must provide far Omae season Non-EGU NOx Reduction monitoring iha status of corn Iimce Rquhmont , asappllmlle, undar withany control mwures afopted to paragraph [ql o ~ t h ~ s section:

25326 F e d d RcgisterlVol. 70, No, gl/Thursday, May 12, 2OOs/Rules and Regulations

(2) E d o m applicablo laws, wutations, and standards and seek injunctive raliof;

Obtain infomation nnmsary to dalnrmino whothor air pollution mums am In compliancn with 8 pHcable IPWS, rcgdaUom, and standad, including authority to rcquim recordkcoping and to make inspections and conduct tats of airpol1uffonsnurces;md

(4l(il Require OWIIOK or uporators 01 sfationmy sa- to install. mahIain, and us0 omissims rntlnItoAng dcdcss and to makeperiodicrapotls to the Stat0 on Lha nature snd amounts of outisdons rrom such stationary s o m c s ; md MI Make thn dnladacribed In pmgmph tvll4ltil of this sectlon evaihble to fhn publicwiihin a masonable fimo afterbeingrepartad and as correla\ed with any a p l h b l o omissions standards or lymitstions.

[w)[l) Tho provisions of law or regulalim t h a t the S lab dotomhas pmvidn tho mthoriths required under this sedan must bn spncIficaIly IdmtIBed, and copios ofsuch laws or rogulatinns must be submittod With the SIP rawision.

@) hgal authority adoquata to fdfill the rquirsrnents ofparjgraphs (v)[3) and [4] dfh0 saeClon may ba ddegaled to tho under saction 114 O P t h CAR,

[xl[ll A SIP tovision may ussign regal authority :a local agontim in accordance with §S1.232. (21 Each SIP mvisIon must comply

with 551.240 [ragading geneml plan re u&ernsnts), ?# Eseh revision must comply wi § 51.280 ( regding rosoluros).

(2) Each SIP rovisinnrnwt prnvido for Stat0 cnmplianw with tho reporhg re uirpmenb in 551.125, ?klb) Noiwithstaadhg any other

pmvhian of this soction, if a %Io adopts rcgdntIons subslantIvely idantla1 to 6ubpans RivLA though TUl ofpart 96 dfhk Ehaptnr [ C m Owna Ssason NQx Tsadhg Fmpml , incorporatos such subparts by reference intc its mgdations, or adopts tugulations that differ substanlively kom such subparts onIy as sot forth in pampph [aal[2) or this sectioa, then such emissions trading prngram in ths StatP'sSIP revision is autamatieally npproved as rneetIn tho roquiremaats

provided &at thoStata bas the legal authon'ty lo cab such a d a a and to irnplment its raspmsibilities under such regdattoas.

(21 If aStato adapts an nrnissbtls trading pmmm that d i K m substantivdy ham subparts through IIII of part 96 ofthis Ehapter only as ~OUOWS, Lhan tho ~ S S ~ O I S

orparap h (9) of t f Is S B C ~ I O ~ ,

Lrading prognm is approved as set fur& in a m p k (aa)[il ollhis section. 8) The &e may -and the npplbbIIity provisions In 5 96.304 to includo all non-EGUs subject to thg Stato's omissions trading program ap roved undar 5 ~ , ~ z ~ f p ) .

The Stale may dcclino to adopt tha CAIR N0.u Omna Season opt-in pmVr5ions OE

provisions appiieatle on& to CAIR NO^ Ozone Season opt-in unik in subparts AAAA through NHWH of this park

[n, Soctioa s u e a h ) of this chaptar and the provisions nfsubpart M I of t h s part appliublo only to CAIRNOX Ozanc S~ason opt-In mlts under 5 gs.saa@]; or

and tho ravisinns ofsubpart ISIl oFtIlis

Ozone Season oat-in units undar

(A) Subpart IIU of this art and h e

[C) Section I16.3881~) oftbis Ehapter

part app P ieabla only to CAE NOx

the dlocatton pmvis~ons set forth it; subpart EEEE of part O C ~ of this c h a p t ~ and may inslead adopt my molhkndulogy for allocating CAlRNOx Ozone Smsan aIIowancus to Individual sourcw, as follows

ksuanea of an amount of CAIR Ozano (A1 The Stat0 may provido for

S w n NUX allowmeas for an ozotlo seaSon, in addition to the amount in tho State's Oznno Season EGU NOx Bad@ Tor such aonn season, not exceeding the amount of NOx SIP Gall allowances dlacated lor tho ozom scason under iho N& Budget Tmding Frogram to nnn-

that tbeapplkahity provisions in gflG.304 am expanded to hdude under pamgraph (aal[Z)[I) of this soct-on:

d o l v t h ~ State to nllwfe CAIROzpne Season NOxal~owanees for an ozonn senson in axcess ofthe amouut in the State's Ozono Season EGU NOx Budget for such o'tono saason plus any additional amount of CAIR Ozone Season NOx allowancas issued under paragraph leal[2l[iiil(Al afthis section far such ozone season; (C) T h State's rnothohIogy must

requira iliat, far EGUs commencing operation hofbre Januarg I , 2001, the Slate will datermine, and nutify !he AdminislmtDr of, each unit's alImlIon ofCAfff NOX allowances by Oclober ai, 2006 far the ofone sflasons 200% 2010, and 2012 and by Ochbnr 31,2008 and Ocmber 91 oPeadh year thredter lot the Q T O ~ Q season in &Q 4th year aRer tho year ofthaotifieatioa deadline: and

(D1 The State's methodology must roqufre that, for EGLTs commencing o p e d o n on uraftar Ianuary f , 2001,

(B) The State's methodobgy must not

tbo Stato will d&xminc, and not@ 8 9 Adminisbator of, aach unit's ollocation of CAIR Ozom Soason NOx n l h w o n c ~ ~ by Jury 31 P f tho calendar year af tha omna soastin for rvWch the CMR Ourno Season NOx allowances am alloaaled.

[3)AStnto &at adopts un ~missbns baading progmrn In accordance with paragraph laa](~] or @) of h i s section is not requirod to adopt an nrnissIons trading progmm In accordanco with paragraph [o)(I) or [2) of thissectton or

omissions mdlng program is not auiomaticslly npproved as set f o a h In p ~ g m p h [aalt) or (21 of &Is section End will bn mviowed by tho Admlnislmtor for approvabilily in acmrdance with tho ollior pmvkions of this section, provided that tho NOx dIawnnccs issued undar such ornissinns lrodlng p ~ p m sholl not, and thn SIP revision shall sbta h t such NOX dlowancas s h d not, qudi& as CAE NOx allowances or c;NR Ozone Season NOx allowances undar any nmissions trading program appmvod under paragmphs [0?(11 or (2) or [aalb) or [zl of this s d o n .

[bb][l][t] The Stata may rnvisa its SP tu provido that, for oadh ozone seeson during which a Stnto implamants control measuros on EGUs or non.EGUs through an omissions trading mgam appmved underpmgraph [ m h or [Z] olthls section, sudh %Us and non- EGUs shall not be suhjact to tho raquimmonts of tho State's SIP meeting the requhments of S51.121, Ktho Shta meats the requiremat in pampph (bb)[l)[i) of this section,

011 For a &ate under pamgmph bb][x)[i) of this section, iftho State's amount of tons specified in pampph

amount cfNOx SIP Q11 allowances slloc~ted for thn omne season in 2009 or in any year thomRor tor the samu types and sizes or units as those covered by tbo mount ol tons specified in paragraph (q)[2] of thisseclion, than fba stat0 must mplaee the farmer amount Tor such ozone smon by the latter amount for such m o m season in ap I ing ara raph [q] ofthis saction. P Z j y R h ~ ~ ~ dand may m v i s ~ its SIP to

rnvids that, for each amne season L n g w h i ~ h ~ h u d a ~sland impIoments eontroI measures on EGUs and non- EGUs tbrough an emissims trading pmgmm adopted in mgulatIons that differ substanlively h m subparts AAAA through O f p a 96 ofthis

rqitzi 0rw5 50ZtiOa nods rho stm

Fcderal RegisterlVol. 70, No. sllThursday, May 12, 20DSIRdes and Regulations 25327

chapter as sat Fnrih in this pa$mph, such EGUs and aonBGUs shnl not be subject to ths requir0motlts of tha Stala's SIP meating Lherequhmonts of 5 5I.121.

fi) Rhoda kland must cxpand the applieabtlity provisions In 596.304 to indude dl non-EGUs subject to Rho& Wand's emissTons trading m p m ap roved under C 51.12Npf

the CAIRNOX Ozann Season oakin Ei) Rhds Islandmay decline tp ndopt

provblons of;.- (AI Subpart IHE of tbis art and tho

provisions applicabln on& to CAIRNOX Orono S w n owt-in units in subamis

ario&tion provisions s i t forth ~n subpart E l X E of pnd 98 afthis cha lor, pmvibd that ~ s l o n l m s t pmvido for fssuance of anamount of CAIR Ozono Season NOx d l o m c c s Tor nn moncismsou nnt exceeding 936 tons for 2009 and hcrnafloc

(iv) Rhoda Idand mey adopt my malhudalogy far allocating CAIR NOx Ozone Seasondhwnnces to individual S~WEOS, as foUows:

(A) %ode Tsland's mcthodnbgy must not allow Rlrodo kland to allocate CAlR Ozone- SmonNOxdlowanms for an ozoue season in DXEPSS Of938 ians for 2009 aad thereafter; [B) Rhoda Island's mathndolagy must

ro+ that, for EGUs wmmeneing o mtim bafora January I, 2001, Rhodo dmdwiII detmino, and notify tho Administrator af, each untt's allocatt~n olCAIRNOx aUoivmcw by October 31, 2006 for tho ozons seasons 2009, ZOID, and 2011 and by Octobar 31,2008 nnd Octaber 31 o f aacb yeat thomaRer for t b ~ omnn season in Lhe 4th year aRer the year oftha notIficatIon deadline: and (C] Rhoda kland's mahadology musf

roquirn that. for KUs mmmenciq o smtion on or after J m u q I. 2001, d o d o Island will dotominn, and noufy thc Admlnislrator a t ea& udL's allocation of= 020nn Snason NOX allowances by July31 &he Ealendar year OF the ozone season for wbich the

O m n ~ Season NOx alIowauanw am

II State authorized uuldor paragzaph (bb)[l) of this sedan or by Rhoda bland

-

underparsgraph Rb)(Z) ofthis sectinn, if tho Slate's or Rhoda Tsland's SIP that. ivithout such SIP mviston, t r n p ~ ~ ~ conlrol mrmuccs on EGUs or non-EGUs under 551,121 Is datnrmined by the Administmior to ment the requirarnents of5 51,121, such SIP &all b deemed i o continue to rneot tho raquiremmls of 6 51J21.

[cc) Tha toms used in this sacthn shall have the following r n m n i n ~

Adminislmlormmns tha Administrator of tha United Status EnvironmatdFrotectIon Agency or the AdmmTstator's duly authorized ropxcsmtativu

Allocuf~ or docation meam, with regard to dlowancw, tho defermInatioa of &a amnunt oFallowanws to bo inltially uodited ton source.

Boiler means au onclused fossll- or other-fuel-rmd combustion devico usad io produce hoat and to Mnsfer heat fo recireukting wtm, ~ t ~ a m , or o h x medium.

httoming-cycle eogenmhn unit means n cogonontion dt in wMch thb energy input to tha untt is k t u s e d to produm userut lharmal cncrgy and a1 laasst some of !ha rejoct hmt h o r n tho U S O ~ U I tbermd onergy ap lIcattnn OF pmcesss is than used lor &ctricity pmdudiom

Clcan Air Act or GlA means the CIaan &Ad, 42 W,S,C. 74111, ei scq.

CqcnemKon unit means B stationary, lossil-ht-fired boiler or stationmy, fossll-fueI-fired combustion tubiie: (I) Having oqutpmant used to pmdua

d e c ~ c i w and useful bmtrJ energy €or indusbdal, cornmexcid, heating. or conling purposes through the sequentid USD of energy: and

[z) Producing during the 12-montb pariod s1-g on the data ihe unit rust produces electricity and dwing any d e n d a r year altar wMch Lbe unit first pmdum oleclxicify-

fi) For a topping-cycla coganamtion unit,

(A] Usofd I h m a I energy not lass than 5 parcant of total energy output: md

(Bl UsnFul power tbett, whenadded to one-hdf dusaful thermal e n q y pmdumd, is not lass then 425 emnl of to^ energy input, ifusnhl t g o m i mnrgy produced i s 15 pmont or mure of total e n q g output, or not less than 45 percent of total maw input, if umfut t h m a l energy produced i s less than 15 percant oCtoial enorgy aatpuL

[I11 For a bottomingqdo coganemtionunit, w ~ f d power not l c s ~ tbaa 45 percent of total energy input.

CombussLian turbhe means (1) An onclosed device CornpFising a

comprpssor, a combustor. and a tubhe and in which tha f l u PBS r e S d h E from

Lhc cambustion of fuel in tho combustor passes through the turbine. rolatlng tbe turbine; and

(2) Iftho endosod device undor paragraph fl] orthis dofiniUun is combined cycle, any associatad h a t rocovery steam gnnarator and steam turbine.

b o p n my machanid, chernicaf. or olectronic procw, induditg, with regard to a unft, start-up ora unit's combustion chamber.

Eleeiriegenemfing unii or EGU mMn% [I) Excepl as pmvidcd in paragraph

[2) ofthis definition. a sfalionary, fossil- lud-fKed boiIer or stationary, fossil- fuel-fired eombuslron hubinn sorwhg at any timo, since the stnrl-llp of tho unit's cambwtion chnmbar, Q generatorwith namepIata mpadty olmnrn than 25 N o pruducing dmtricity for sale.

12) Fora unit that qudiEes osa mganeration unit during tho 1z-month period starting on the dato f h ~ unit k t producw alcetrtcity ond canifnuas to 4uaIiQas a wgonara!ton unil, a cogeneralion unit serving at any tima a generabr with namoplato eapadty or mom &an25 W a and supplying in any olendaryoarmore than on&M of tha unit's p o t d i d electric output opacily or 219,000 MWh, whkbsvet is greater, to an utility powar disbihtion system for sat. Ifa unit qualifies as a cqenmtion unit during h e 12-rnonth period starling on tho dab t h o unit fiat produces electricity but subsquantly no 1oqorquati6~s as a wgonontion unit, &e unIt shall be subject ta p"greph Dl of this daWtlon starttngon t h o day on which tha unit Grst no Iongpr qualifits BS a wgeaeration unit.

Fossilfuel means aatuml gas, etroleum, coal, or any form of solid,

iquid, or gaseous fuel dorivod h m such matarid,

~ossil.Juel.fi~d means, with regard to B unit, cambusting any amount of fossil rue1 In any dendm yem

GenemIormeaPs a davico that pruduces alcctrieity.

Maximum dcsign heal input means: (I) starting From tho initial

installation ora unit, tho maximum amount orfuel per hour [in Blulhrl that a unit is eapdds of wmbustbg w n steady stntn basis m specifid by tho manuractumr of Ihe uni;

[z)cil Bmpt as provided in paMpph (~](ii) of thii delinltion, starting from the compIetIon of any Subscqueat physical &an@ in the Unit resuhing in an incream in B e maximum ammat of hol per hour (in Btulhrl that a unit Is apabla of cornbmtiing on a stoady stato hnsis, such iamased mdmum mount

Commence upemlion means tohnva

25328 Federa1 RctgisterlVul. 70, No. 91 /Thursday, May 12, 2005 /Rules and Regulations

as spedfisd by tbo person conducting tho hpiml changp; or [ifi Eorpurposes ofapplying ~ l n

definition of !be t a m "polsntid olcc?rhl oulput capacity." stating from t h ~ cornpl~tion ofanysubsoquent physiul chaaga in tho unit rosuILIng in a decrcasa In &a maximum amount of fud por hour Finl?tu/hr) that a unit Is capabla olcombusLlrig on n steady slate- bask such docreased mnximm amnunt as specIGad by tho pnrson conducting Lhn h sical change.

d!QSrneans NalionaI Ambirmt Air Quality Standard.

Namepide capuci~ymeans, starting horn the itlitid installatloa of a gonemtor, tbu maximum eledn'wl

generator is wpabla OF rndudng an a steady stata basis and &ring connllnuaus opmtion (when mrmtrictodhy rwsortd OF dher doratings1 as spedliod by the mnnuhctumr of the genorator or, starling Porn thn cornpleliun of any subsequant physiml &ango in I ~ B gonemtor rosultIq in nn iacrmsa in the maxlrnurn doctrIul ganndng output (in W e ] that tho generator Is eapable ofpmducingon ~l smdy stato bpsrs and during continuous o omtim [whan not raskfctnd by s o a s m i or other dantings), such Increased mwSmum amount as spmihd by tho person cnnduch tho phydcol chnn e.

omSssIons h t h not EGU,

a multi-steta nitmaan oxides air PDUUI~M control and emission reduclron

th3s part and § 51.121, as a means of mittgating intarstate transport of ozone and nltrogm oxidts.

N & s P c u ~ d o ~ m m m ~ n s a 1Imfted nuthorimion Issuedby the Administrator under the NOx Budget Trading Program to emit up ta uno ton of nittugan oxides du&g the ozone soason d i h ~ specihd y m or my year thmafter, pmvidod that the provision in §51321(b][Z)[{i]@] shall not ba used in upplying &is dofinition.

Ozoneswsoon means the perrod, which bogins May1 and onds Se tarnber30o€my ear.

IotentiB~ e / e c ~ m A utpn t capcity means 33 p m n t ofa unit's maximum desrgn heat In ut, divided by 3,413 %lu/ k?Yh, divided&. 1,ODD kwblMwh, and rndtiplied b 8,760 hdp. s uontiJ"se of energ)rmeans:

&ar a toppingcyeIe coganemtion unit, fhn UP of reject heat from ~lac tn 'c i~y production in EI usoful & e m 1 snow application or proms; or

BQnOmCDg output MWe) h L h0

Non-EGbmeans B s o w J N O x

NOX Budget Trading Progmn means

@I For a bdtnming-qde cogenetation unit, the uw of rcjact hoat born useful thoma1 energy PppIication or proms in alactridty pradudon.

T q p i n g q d e mgmcmtion unit means B mgansratian unit ht whfch tho energy input to the unit is first used to produce usnful powor. including electricity, and a! least some of thtr reject lrcjt h m the 01ectricily pmductiaa is than used to providn usuful thermal: anow*

Total energy fnpnt means, with regard to a cogonemtion unit, total enorgy of all fnrmssuppliad to &G cogenomtron tlnIf, oxclutIIng ~ n ~ r g y pmduccd by &a cogenomtion unit itsall.

Tatat onergy output mems, with regard to a cogeneration unit, thesum of us oh^ power and useful thermal energy producad by tho cogmention unit.

Unltrnoans P stationmy, fossiI.hraL fired hoilnr or n statinnary, fasdl-fuel- fired combustion iuurhie.

UseJdlpmmr means. with r e E d to a cogonmtIon unit, electricity or m u e h d d B ~ B W mads availabIa for use, d u d i u g any such etlergywad in tha pow= produdonpmcoss lwblch process includes, but is not limited to, my on-sito protcssing or trsatmeut of fud combustad at the unit and any on. site ambsion controls).

Use nf ih~md energy means, with

energy that Is: (1) Mada avallnbh to an industrial or

cornmarcid process, exduding any heat mataiaed in condensah retum a makeup water;

(2) Used in a heat applfaticn [e.&, spam h u n g or d o m e hot wator heating): or (3) Used in aspace mnling

application &e., hemal enow used by an absorpuoon chilhr].

Utilifypowcr dTs&jbution systcm means &e podon ofan daefridtygrid owncd or opemted by autilily and dadicated to delivuring dectridty to customers (ad) New Hmpshiru may tnvisa its

SIP to im lomantr; contml mearmres on EGUs an%non-ECUs through an emissions tnding pmgtam adoptad in mgulations that dih-substantivdy from subparts AAAA h u g h UII of part 96of th i s~apter~sot for tk~ath i s PawaPh. (1) Noow Hmpshii must expand tha

applrrmbiity provisions in $SSS04 of this chapter tu Include d l non-EGUs subject to Now HampshTre's smhsions trading program at New Hampshh Coda ofAdmiistrative Rules, chapter Env-A 3200 @OO4).

reg= d to cogenamtion unit, thermal

[Z) New Hampshira may dccline to adnpt tho CAIRNOX Ozono Season opt- In provisions ol:

Iil Subpart IN of his part and iho provisions applimble only to CAIK NOX Ozone Smsan np!-in units in subparts M A WPU$ HHHH of this part;

Oil Section ae.ssstb1 ofthis ckaptnr and the revisions ofsubpart 1111 ofthis part ap&abIe only to CAIR NOX -ne Seasonapbin units undor 596388fiI: or

(Hi] Section %386(c] of &Is chptur and the pmvisfnns of sukpart Iur of this part applicable only to CAIRN& Omne Season opt-in units under 5 98,38B[t).

{3) NQW Hampshlm may adopt tbn allmLIon provisionssot forth i n subpart EEEE of art 96 ofthis &a tsr, pravic~effiot ~ a v ~ a m p s L must pmvido for issuance of an amount oi CAUl Ozone SeasonNOx aIhwnnees Tor an ozono soasan not axconding 3,000 tons €or ZOO9 and tharaafter;

C41New Hampshire may adopt any rnothodoIogy for allocating CAIRN& Ozona Seasnn aflawanccs tu Individual 5 0 ~ . as foIlowslus: [i] New Hnmpshim's mathodology

must nat allow Now Hampshh to nlloda CAR Ozone Smon NOx allnwances for nn ozonaseason in ~xcess 0€3,00[1 tons for 2009 and IhereaRor.

[iil Now Hampsliiro's mothadology must raquire h a t , fotEGUs commnncing opemffon hafora January I, 2001, New Hempsidm will datermino, and notify &e Administrates uf, each unit's alloation of CAR NQx a1Iawanm by October 31,2006 for the m n n simons 2008,2010, and 2011 and &y Oetaber 31, zona ond October 31 or aach year thoreafter fartbo ozone smon in the 4th ycar dtar tha year o f tho aotificatiun deadline and

(iii) New Hampshim's mathodology rnustraqub that, forEGUs cornmmcing operatian on or a h r Ianuary I, 2001, Now Hampshire will delarmino, and notify the Adminisbator or, each unit's allomtion of CAIR Ozono SsasonlrIOx allowaam by July31 af the dsndaryear of ozone soason for whkh the CNR OZOMI Season NOx allowam= am aheatad. ~t 5, Part 51 is amended by odding 5 51.3211 to Subpart G to mad as folhws: §51=124 Findings and requlmenlsfor submlslnn of Stataimplemcntatlon plan revlsIons reIaUng to ernisstom of sulfur dioxlde pursuant to the Clean Aft Inlmtatc me.

(a) Undwsncuon 110[n1[11 oftho CAA, 42 UAC. 7~ia[~1[ i l , tho Administrator dBiermines !hat each Stah identifiedin pBI.agmph IC? ofthis

Federal RegisterlVol. 70, No, 93 /Thursday, Mny 12, 20D5/Rdm and Rcgulattons 25329

sodon must submit a SIP mvision to comply with tho mquiromonts of section llOt8][2ltDl[i~~fl of Iho CAA. 42US.C 7410[8][21(0)~~l[1l. thou& tho adoption ofadcquata provisions prohibiting sources and other activities from o d t h g SO2 in amaunts that wiIl contribute signXiwntly to nonattahmmt in, or Interfern with maintenance by. onn or more other States with respect to ths line partIde5 (PM-) NAAQS.

For each State idenmad in paragraph [c] ofthis secllnn. tha SIP revision required undar pampph [a) uf this scetion will contaia adquato provfsIons, for purposas of complying with seelion llOIa)~Z1D)[i~[Il cF &e

If tha SIP revision contains control measures that assum campliance with the applimbla requhments of- sadinn.

ihe requiwem~nts of this secthi: Alabama, florlda, G ~ q l a , IllIriois, Indiana, Iowa, Kentucky, Louisiana, Magland, MLchIgnn, Mnnesola, Mississippi, Missouri, Naw York, North Carolina, Ohio, PmnqhniR. South Carolina, Tonnassne.Taxas, ViQinh, West Virginia, and Wkconsia. and the District of Columbia.

fdl[il Tbe Sip revision undor p m p p h [d ef this seclIonmust be submitted to EFls by na Inkr than Septcmbsrll, 2UOB.

CfCA, 42 u3.c. 7410[a1[2]@]fi][I), only

(e) The frillawing States am subject to

[z) Thn requiremnnb of appmdixV to this part shall a ply to the SiP ravision under pamppg [a] of this saction.

(31 The State shall deliver 5 wpies of the SIP r8PisIon under paragraph [a] of &is section IO the appmptiato Redanal Office, with a iettcrgiving notic0 of such action.

(81 The State's SIP revision shall Eonlain control measures and damonstrats that they will rosult in mmpliancn with t h ~ State's Annul EGU SO2 Budgot. if applid~le, and achisve the State's Annual Non-EGU SO2 ReducUon Requirement, if a plieabIe, for &a appmpriata potiods. Ti0 amounlS of tho Statu's Annual IXU 502 Budget and Annual Non-EGU SUI Redudioa Requirsmtlnt shall bo dotemined BS follows:

thn State I s d e h e d as t h o total amount ofS& ~mlss inns kom al? BGUs in that State for a year, il the Stale meets LIie requimmehts of pmgtaph [a) of this section by imposing control rnmsuros, at loast in parr, on EGUs. If the State imposes conbol measurcs under this s ~ ~ t b n OII EGUs, tho A~tnUd EGU SO: Bud@ for tbn State l a 1 1 not exceed tha nrnoUnt, during the Indicated periods, sppeiliad in p q r a p h (ell2) o€

[IIIU The Annual EGU SOr 3udgo:et for

tbksoctian. [ii) The Annual Non-BGU SOz

Reduction Requirement, ifapplicabls, i s donned es the total amount of Sot omision reductions that t t e State domonstmtes, h accordmco with

paragraph (9, nfthis section. it will achiave from non-EGUs during tho appropriate pon'od. Iftho Stat0 m o t s the requirements of paragraph [a] of lhi scetion by imposing conirol rnmsurEs on only non-EGUs, than Lho Stata's Annual Nan-EGU SO, Reduction Requimmant shall equd or oxcoad. during tho oppraptiato pmiods. the amount datsnnined in accordanca mi& paragraph [ell31 of this soction.

(iii) E n State mrmk tho raqukments of pampph [a) of this ssction by imposing conk01 measums on bath EGU5 and non-EGUs, &ea:

Raduction Requirement sbal1 equal or meed the dlffemnca botwaan tho amaunt spscifiad in paragraph [o](z] of this saetInn fur tho approprhe period end the amount oftho Stato'shnnal EGU SO1 Budgot SpciEiod fa the SIP rovisim fortho a pmpriale period: and (B) The AnnuapEGU Sot Budget shl l

not wceod, during tho indicatod periods. tho emountspecihd in pnragraph (01[2) of thissection plus the amount of the Annual Non-EGLJ 502 Rnduction Requimrnont undar paragraph [BIM[~II[AJ orthissedhn For the sppropriato @ad.

(21 Far a Stah that cnrnplh with thc requirements of paragraph [a) of thIs section by Smpashng ant101 m a s u m on only EGUs, the amaunt of &n Annual SO2 Budgot, in tons of SO2 pm yenr,shnll bn as follows, lor tla indicated State for the indimtad poria&

[A] The Annual Nan-EGU SO1

~~ ~

15732 705

2x44 50 213,057 192,671 =599 64,095 188,m 59948 lt1,697

178,605 49687 33,763

137,214 $3!ie139 $37342 333,520 275,990 57271

137,216 324946 53.478

215,881 87,264

110,307 495

$77.415 149,140 IS4,069 17821 9 44,866

<32,$41 21;963 49,488 125,U24 34,591 n,m 96,050 a397 95,139

233,464 193,193 40,OeS 9k051

224,662 44,435

151,117 6t.085

25330 Federal RegisterlVoL 70. No. 91 IThursdzty, May 12, 20051Rules md Regulations I

(3) For a State that corn lias with tho requimments olparagnp R In) ofthis soctbn by imposing mnh1 measuros

Aanual Nun-ECU SO2 Reduction Re uimmont, in tons of SO, p w y m , slih be dotarminad. fm tho Slat0 for 2010 and thereafter, by sttbhacting the amount of the Stato's Annual EGU SO2 Budget for the appropHate year. spodfind in paragraph [e][Z) of this seetian, h m an amount q u a l to 2 times tho Stah's Annual EGU Sot Budpt for 2010 though 2014, specified in ~ U I I ~ h [0)[2) ofthissaction, 1R ~a~hb ravision must set forth control rnua~wes to meet the amounts specilied in pmgraph [e] orthis section, as appitcablle, including the followin :

11) A Jcscriptim of anforcement molhods including, but not l i t u d to:

61 Pmceduras for monitoring mmpfinnca with ea& PF&R saleelad control muasures;

[ii) Procedurus for haudhg violntians; and

[iii) A designation uEegmey responsibility for enforcement of im Iummtalian.

Pzlrii fa Stnte sleets to irn me mntml m e m m s on E G U ~ , lRm thoso mwstum mu51 impose an annual SOZ m a s emissions cap on all such s o w o s in the Slate.

(ii) Ea Stato JQE~S to imp0513 control measuros on fossil fuel-fired non-EGUs that 810 boilers or combustion turbhes with II mnxbnum design beat input gmater than 250 mmBhdhr, than those mcasums must impose an annud SOz mws omissions cap on all suchsoureas in ihe Stain.

(iii) Ea Stat0 d a d s to h p o s a control M O ~ S ~ on nan-EGUs other than thosa doseribnd in pampph (fl[2)1ii] of this section, thnn those measures must impose an annual S& mass emissiatts cap on all such SOWN in the %to, or &a State must demonsttats why such smIssions mp is nnt pmdcable, and adopt aliernativo roquhmants that ansum &ut rho State wiII comply with ils rquhmenC under pmgraph (01 of this section, as applicabh, in 2010 a d subs uant ears. (g)B SIP m v ~ m rhat EontaEns wnb1 measures covering non-EGUs 8s part or all ora State's obliption In menting its requiremnnt undar pamgmph (a) ofthii section must demonsmto that such cantml ~ C P S ~ L F B S a r m adeqwto to pravide Ior h a timdy compliancu with the SI at& Annual Non-EGU S& Reduction Requirement under pampph (e) of tbIs ssclion and am not adopted ur implemeatedhy the Stete, as orMay 12,2005, and am aat adopled or h i p h e n t a d by the federal

on only IIODEGUS, thnmount o€ tho

government, as of the date of SubITtiS5iOn or t h SIP revision by bc State to EPA

pamgmph C)[I) of this section must include tho following, with respact to each s o w e category o€nun-EGUs for which the SF mvision r e q u h s rontrol me as WE s ;

[il A detailod historical basalino inventaiy oFS0zmasss emissions from tho SOUTCU category in n ropmentativo year consisting, at ibe State's dsction, of 2002,2003,20W, or 20S. or an avcmgo of 2 or more of thosa y m , &sent t h o coat101 measuresspucified In the SIP ravidon.

[A) This invontoty must mprmeat astlrnatw of actual emissions based on moniloring data In accordmen with part 75 of thIs chapter, If tho source- mtogory Is subject to part 75 modbring requirements In accardance with part75 ol this chnpter. [B) Tn the nbsenca of mnniton'ng data

in aceordenca witb part 75 of this chapter, actual Brnissiom must be quantified, to the maximum atmi pmctiable, with &e Same degrea of amranm with which emissims am quanaified for souras subjsct to part 75 of this ehapler and uslagsomn-spadfie or saurm-cakgoq-specIIc assumptions that nnsure a soum's or s o m category's actud emhslons am not oueraslImat~d, nfa Slate us05 factors to estlrnato ornhlons,pmductian or utilimttan, or effectiveness o€aontrols OF d e s for a soum mtugoq. such faetors must be chosen tu o m that omkslons am not averastimatad.

[Cl For meafllres 10 reduce omhsions from motor vehidss. edssion d m a t e s musth basad on an omissions rnodol that h s heon nppmved by BFA for USB in SIP daveh meat and must ha

assumptions regarding vohklo milos a v d s d and other factors curteat at the time of the SIP development,

(D) Far masure5 to reduce emissions horn nonroad engines or vehldw, emts51on &atas rnnthndologis must be a proved.ly EPA.

S o l mess amissfon5 from the s o m a category in &e years 2010 and 2015. alrsent the control measures spaeilied ia tho SIP ravision and reflecting &angas in those emissions horn tho bistodd basalins yim io the years 2010 and 2015, basod on projected changes in tho production input or output, population, vehicfo mila ttavaled, economle activity, or other factors EIS appltcabtn io

[A)Thesa invantoria must account fur impIementeiion of my control measures !bat am adnptud or

(21 The demonstration under

camistent wi il the planning

c ~ e t m ~ bsoline inventory of

thk S O U W CakgDq.

irnphmented by tho Stale, as ofMay 12. 2005, or adopted or implemented by ffie fedora1 gavernment. as ofthe date of submission of tho SIP rovision by L ~ P Slate to EPA, and must oxcludo any eoatrd sneamms specified in tha SlP revision la meat lhe SO2 omissions reduction raquiremnnts ofthis scctiotl. [BI Economic and pnpuhtion

forecarls mu5L be as specific as possibie Lo the applicable indusby, Statu, and county ofthe sourc~ or suum alegory and must bs cansislont with bnlli national pmjecUons and rolovant ofidol plnnniag assumptions, including est imah of po dation and vehide m i l e travaIcd icvolopcd b u g b mnsultatinn betweon State and local transportalion and air quality agencies. Hawaver, if thesa nKcial pIonning assumptions am heonsktont with afficial US. Census projeclions of populathn or with saorgy consumption pmjeelions contained In ~ E I U.S. Department of Enmgy's most mcont Annual Enorgy Outlook, then lho SIP rnvkion must mako ndjuslmmts to correct tho inmnsistenq or musk damonstrata how tho official planning assumptions m8 mora accurata IC) These fsvantorles must ateaunt

for any chnngcs In production mothad, meturials. ruals, or sfficiancy h t a r o expackd to omebetwcsn the hklodcn1 basnlho yaarand 2010 ar2015, as ap mpdnte.

{iil A projection ofso2 mass emissians in 2010 and 2015 from tho source category assumlng &a a m a projected changes as undnt paragraph lj3Wii) ofthis section and r d t i n g barn implarnon!a!ian OF each of thn control moms specified in tho SIP revisinn,

[A) Thesa invontadns mustnddws tho possibility that tbe Slat& new cmtrol miasures may a w e production or utiIization. and amkshms, La shiR io uarcylatd or loss 6bhgontIy mgulated sources in Lho source CateEory la tho same or another Stato, and tho60 invontories must includo my such nrnmints of omissions that may shift to such other sourmi,

(B) The Stats must ptOVidQ HPA with a summq of h e computations, assumptions, md judgmnnts used lo detormina the degreo of reduction in projected 2010 and 201s SO, emissions that will bn Echieusd from th impfomentation oftho new mnkoL measurtrs cornpad to the rslavant bmlina amisslons invento

[iv) Tha rasult af subtmc& the amounts in pamgmph [g'l[2)(rti] at this section for2010 and 21~15, mspectively, fmm the lower of the a m m b in pamgraph Cgl(~lli] or (g1[2ltii] ofthis saction for2OfO and 2015, raspectiively,

Federal Registcr/Vol, 70, No. 41 /Thursdayl May 12, 20051Rules and Regulations 25331 & I

may bo crodi1ad tnwards the State's Annual Non-EGU SO1 Badudion Ruquttomwt in pnmgmph (01[3) efthi sedon lor the appropriate padod

[v) Ea& SIP ravislon must Idsnlify the sources of tho daia usad In each usthata and each projectinn of Q r n S S d O ~ .

with S51.116 (qardtng data availability].

modloring the status of com liance with any control n t o ~ s ~ e&pted to meet the Stato's roquimmonts undm paragraph [e) of this snciion, as Follows: (1) Tha SP mvidon must provfda for

IqdIy onforcnabh procaduras for requiring o w n m or operators aT stationary s m e s lo maintain records of, d poriodidly rpart lo the Stat&

(i] Itlronnatinn on tho amount of SO2 omission6 from tho stationary soums; and

[ti) Othsrinbrmation as maybe necessary to oaabh tho Siab to delermins whether the sources am in tomplimw with appl id le prtiaw of t h ~ cwml mcasuras;

(21 Tbe SIP rovisioa must comply with §53,232 (tcgardfng testing. inspetfan, anfarcement, mnd w mplalntsl : (31 EfLo SIP revision contains any

bansporlation contml moasms, &on the SIP mvkiori musl comply with 951,213 [regarding transpottation contrnl moasures]:

[4](i) Sfthe SIP revIsIcn contains moasues to caatml W s , thm t h ~ SIP revisba must tsquira such sources to comply with ths monitoring, recordkeaping, and reporting pmvfsIons of part 75 ofthis chaptar,

(ii] Ethe SIP revision contains meaSureS to coatrol fossil fuel-fimd nan- EGUs that are boilers or combustion turbines with B maximum design baa t input groalor &an 250 mmBtulhr, then the SIP mvisbn must rn Uh8 such sou~ces tp comply with 9, e monlloring, mmrdkeepIng, andmporting provisions ofpart 75 of this chapter.

[iii) If thn SIP m i s f o ~ cPntnIns measures to contml any ather non-EGUs that are not dasdbed In para nph [i1[41[i~ of&is sectlon, &en 1%a SF ravisioa mwt reguira suchsmrces to cumply with tho monitoring, racordkmping, and roportrng provisions ofpart 75 ofthis chapter, ur the State must demonstsale why such Fequiramenk are not praeff able and adopt alternative requiramenls that emwa t h a t tho raquired omissions reductions wiU be quaatilia& to the maxhum axteat aracthbh wih the

F) &ch SIP revision must comply

til math SIP revidon must provfde for

emissions are quantified for snurecs sub cct to part 75 af this chaptar.

01 Ea* SLp rnvisim must show that t h ~ Statu has legal authority t o carry out h n SIP T B V ~ S I O ~ , including eulhority to:

fl) Adopt irnimoll~ stand& and Iimitations and any ofhar measures necmsary for attainment and rnainlanmm ofthe Slate's reIevant Annual EGU SO2 Budget or tho Annual Nan-EGU SO, Reduction Rquimmnnt, as appIimbIa, undor paragraph [o] of

snction; [2) Enforce applicable- hws,

rogulatinns. and standardsand smk injuncffve relief; I31 Ohtah inromalion necwsKy io

dotermino whether air pollution sources are in compliance with a plicable laws, rogalations, andstand&. including authority tu raquirn reeclrdknoping and to make inspections and conduct tesis of air polIuufion sources; und

[4l(il Heqriiro o m w s or operators of slotionary sources to install. mainlaln, and we emissions rnonitosing davhs

on tha nature and amounts of omissions hmsuchslatIonary sources. and

[ii] Maka tha dab desscribed in pamgraph [j][4][i) offhiis saction available to the public within a masonabla tlme dter being reported and as corrdaled-with any appIimbh ernSssions standards or limitnlions.

n;lkl The amvrsiom orlaw or

Wld to mako @Odk t 8 P O T h t0 b P StOh

imding prognm in h a Sfato's SIP revision i s automatically approved as meeting the rcquircmonts of pnragrnph fa] of this section, provlded that tha Stata has tho lcgal authnrity to tnkc such adion llnd to implmont its rosponrlbilitiss under such regdalions,

trading pmgnrn that dilfes substunlivdy Emm subpark AAA #mug11 only as follows, thcn thn omissions trading prognm is approved as sot forth in aragra h [olIO of this sedion. &Ths !h~ may declino to adopt the

CA?R SO2 opt-in provisions ofsubpart Ill Of h i 6 part and ths pmvIs1uns applicable d y to CAIR SO2 opt-in units in subparts AAA h u s h this Dart.

CARS& opt-in provisions of 6 96.280b) of this daptar and tho provisions of subpart IIl of this part appIcablo only to CAW SO2 opt-in units undor 5 96.28B[b]. tho CNR SOt opt-la provisions nf 5 ~ I E . Z ~ B [ C ) oFtbis chaptor and the p r o v k i a ~ cfsubpmt i? of this part applicabla only tn CASRSOZ opt-in unltc under §9L286(c).

[3] A Slate that ado@ an emissions trading progmrn in accordanca with pamgmph (ol(1) or [Z) ofthis scclion is not rcquircd to ndopt an omissions

[z] If a Stnto adopts on omissions

of part 90 O f th is chaptor

of

(ii] Thn Siab m y docline to adopt iha

(iii) Tho Stolo mny dcctina to adopt

r&?ation &t tho Stats da~nrm~nes DrnvIds the authorities ropuircdundar

trading program In accardance with f 96.123 (o][l] or (2) or (aa][l] or (2) Of *. . . . . . . .. . . .. . . . . . . . . . . . .

tbIs section must ba speeihcally identilied, and copias of such laws or regulaff om must bo suhmjttnd with the SIP mvision,

[2) L x a l authority adequate to fulrill the r uiramnnk of paragraphs (jII31 mnd 3 orfhis soction mav ba delwaad ta thi state unh&sectim-i~14 o& CAn. [1)[1) A SIP revision may assign legal

authority to l u d sgonties in accordanca with §51.232.

(2) Each SIP revision must corn ly with § 51.240 {regarding genaml p P un Eeq,] SIP revision must wmpIy with 551,260 [regarding rosoums), (n] hch SIP revision must provide for

Stato compliance with the raporling re uIrernsnts in I51.125,

qO]h) Notwithstanding any othor provision ofthis section, if a Stah adopts ropdationa substantivivsly identical to sub art5 AAA though m of part96 of this cf~aptar[CAIIiS& Trading Pmgmm], incorporalas such subparts byreferenctr into Its regulatinns, or adopts regulations that differ substantrvdy b m suchsubpads only as set forth in paragraph [ol[Zl of this section. then such e r n i s s h ~

uImments1.

this chapter. (4) IFa Stptn adopts an omSssIons

mding prognm that differs substantholy Gom subputs A i b l through EI of put 96 of this chaptw, ohm than 11s set forth in paragraph (0](2) af thrS section. &on such emissiuns trading p r o E m is not automatieally approved as sat forth in paragraph [o)[l) orf2) of LhbsecUon and will be reviawod by tho Admiktntor for approvability in acwrdanw with the other provisions of thissmtim, pmvIded that the SO2 allowances issued undmsuch emissions trading progmm shal1 nut, and tho SIP tevIsion shall datu &at such SO1 allowancos shall not, qualify as CAE SO, alIowaness under any amissions trading p m g m apprnv8d undor para raph [o)[z) or (23 ofthis sediun.

rpBu n ~ t a t o ' s SIP rpvrston doasnot contain an omissions trading prclgram approved undar paragraph (o]bl or (21 ofthis section but contains mntrd me- on EGUs as part or all d a Shtds obligation in meeting ik. roquitomant under pampph (a) of this snction:

(11 The SIP mvision shall pmvida, for sachvcarthatihaState hnssuch

25332 Federal Register/Vol. 70, No. 91 /Thursday, May 12, 2005/Rules and Regulations

obligaalion, for the permanent rotrromnat of an amount of Add Rain allowances allomtad IO sourns in the Stnto lor h a t year and not daduned by the AdminIstrabrundor tha Acid hiin P m p m and any omissions trading program approved under paragraph [o)[~] or @I of thts sectloa, equal to tlm difhrance htwecn-

[AI The total mauat of MdRatn allowances allocstad undm ihn Acid Rain Pmgmm to the sources in tha Stafo for that yeat; nnd

Dl If thn Sintn's SIP mvisIon contains only control mansum on EGUs, the Sialn's AnnualEGU SO2 Budgot for 010 appmpriato perind as spacifiad in paragraph (ol(Z] ofthis scelion or, if !ha Sfats's SIP zevlsim contains contml m e a m 5 on EGUs and non-EGUs, &a Stata's AnnuaI EGU SO2 Budgot for the appropriate period as speciftad in tho SIP rnvision.

(2) Tha SIP revision providing b r p m a n o n t rotimmnnt of Acid Rah allowances undar p m p p h (pS(1) OF this sociion must on5ure Uiat such allowances m not avail&Iafor deduclIon by tho Adminislrnlor undar thn Add Rain Pmg~am and any missions tmdiig program approved under paragraph ~oI[fl or tZ1 ofthiis section

( 1 The term used in this SCf$Dn shaqlhave t ~ s following moaning:

Acid &in ullawanep means a Ilmlkd authorization issued by tho A&nInislratoruadarthnAddRafn Pmgmm to omit np to onn ton of sulfur d i d d o during tho specifiod yew or any year thereafter, axmpt 8s athcrwi5~ pmvidedby the Admlnhamr.

Acid Rain P r o m means n multi- Stab sulfur d i d d o and nitrcgan mid= airpolhtioa mnhl and emissions wductiou progmna eslablishedby the Admidstrator undcr titla iV cffhe CAA and arts 72 though 78 of cis Chapter.

Admidslzator uf the United States Envbnmentd P r n t d o a Agency or &e AdminisLretor's duly authorimod raptesontativa.

A l l o d e or allocation moans, with regardto alhwances, the dofadnation oftke nmouat oltllbwaueas toba irGtially d t o d to a SOUTCB,

Boffermeans an enclosed fossil- fir ather-€uel-ruod combustion dovim used to pmduce b a t nnd to transfer heat to re&cu?ahg water, steam, or othor medium.

Bdtoming-cycle mgmemiion unit mans a cogen~ralion unit in which tho snwgy input to the unit is first used to pmduca U S B ~ ~ thema1 anew and ai least mmn of ~ELB reject h a t brn Iha usaful thermal unergy applim\Ian or

A B mlnktmtormwns tho

process is then usod for docirieity production.

C l a n AirAct or Gl.4 morns tho Clean Air Act, 42 U.S.C. 7401, ef seq.

Cogencmlfm unit means a stationary, fossil-fual-fired trollar or stationary. fosdl-fua~-fked combustion turbine:

[I] Having equipment used to praduco electricity and useful thermal enargy for industnal CPrnmc~dd, hontlng, or coding purposes &mu& tho scquuntid us0 ufouorgy: and

(2) Pmducing dudng tho 22-rnanh period darting on tho dato tho unit fitst prpducas eleetrjcily and during any dendm year aRer whlch the unit fiat produccs electridty-

[il For a topping-eyela mgcncration unlt,

[A] Ussful thormnl snwgy not loss than 5 parcast oftDtal enargy output: and

P31 U S E ~ I power that, whm added lo ono-half dusdul t h c t m d nnorgy produead, is not loss then 42.5 emnt Oftotal mqy input, i fUS8fId tEa-1 onorgy produead is 15 pomnt or m m of tofal enargy autput, or not Iw than 45 pamnt allotal anergy input, i l useful thnrmal onargy producad is less than 15 perwat oflotal maw output.

[Ti Fur a bottatdngqcle cogenoration unit, USPFUI powor not Icrs than 45 percant oftatal o n s w input.

Combustian m r b h moans: (1) An enclosed device comprisinga

compressor, e combustor, and a turbhne and in which the flu~gas rasuIIbg fmm tha combustion of fud in tba combustor passes h u g h the lurbiao, rotaling the turbine: md

(2) If he enclosed device undor pma ph (1) oltbis dofinition is mm&d cycle, my associated heat roeovary staam gonerator and stoam turbine,

bagun any mechanical, chmical, or dleckonk process, indudhg, with regard to a unit, start-up of a unit's combustion chador.

Hech'c genemthg unit or EGU

(I) E m t as providfld in pampph

fml-f-ed boilor or stationary, fossil- hual-flred combusKoa turbine serving at any time, since fha start-up oftha unit's combustion chamber, a ganorator with

Cammence upemtion means tu have

means:

(21 af this B ofinition, B stationary, fossil-

wgeneratlon unit during die 12month pdodstarling on bo dah the unit first praduees decbicity and cantinurn to qudify as a cogonoration unit. a cogeneraatton unit s&ng st any time a gnnsrabr with nameplate mpactty of mora than 25 WE and supplying in

any ealendar year mom than onmhird olthe mSt's potential eleclric output capacity orZ19,000 MWh. whichavur is grcator. to any utility power dislribulim systom for sala If B unit quaWmsas s cogaamtion unit during tho lbrnanth perlud starting on the datn tho uniL firs1 pmducas dectriclty but subsoquantIy no longer quidifins a5 a Eognnaration unit, the unit shall ba subject to pnngnph (1) of this dafintlion starting on tho day on which tho unit fmt no longor qualifies as B GO mention unit.

F&l@lmuans nalud gas. olrolftum, coal, or any fom of solid, pi quid. otmswus €4 derIwad from

a unit, wmkGsting any amounl offusil fud in any dondm year.

Generotor means a devico &at pmduces aleccuiclty,

Maximum design heat input mcans: (11 Sfarting from tho initial

installation ofa unIt, the maximum amount dfud por hour [in Stdirl thnt B unit is capable of combusting on n steady state bask as spcilicd by tho rnmufachrrcr of thtn unit;

(Zl[il Bcept ns pmvlded in paragraph ( Z l I i i ] of this dafinithn, starting ham the wmpletfoa of any subsequent physical change in t h o unit tpsulff ng in in i n c r o ~ ~ o In the mwimum amount of fuel er hour {in Blulhr) tbat 8 unit IS c a p a h nf combusting on B steady state basIs,such increased maximum amount as spedfiad by tho person conducting the hysical change; or (11 For pu Em of applying tho d&nlion of'%, term "potentIaI s l c c f ~ M aulput capadky," st-g from the comphtim of my subsequent physlml change in tho ualt r e subg h p dccrensa In h a maximum amount Of fuol pcrliour [in B t u h ) that a unit is capable of combusting on K steady state basis, such doeraassad maximurn amount as swcified hv the uorson conductinc.

quality Standard.

from the Initial installation of a genarator. the mulrnum electrical generating output Cfn W e ] that the generalor i s capable of producing on a steady stale basis and during continuous operation (when not tastrictod by seasonal or alher deratlngsl as specified by tbe manufactmr of the generator or, starting From the completion dany subsequent physical change In the ganma1or resulting in an inamso in tho maximum electrim1 generating output [In MWel that tho genemtoc Is upabh olpmdudng on nstmdy stab h i s nnd during mntinuotls opemtion {when nut rcslrtctod by seasonal or athcr

Numophfe mpuufyrneaas, starting

F e d i d RegistcrIVol, 70, No. sltThurEdny, May 12, 20051

domtings). such inPonsd maximum amount as meeifisd by tbe pmon

II 6. Pntt 51 is amended by adding 5 51.125 to Subpart G to mad as fdZotvs:

conducting he physlkl &qp Non-EGUmaans o SOWCD of SO2

smissions that Is not an EGU. Potential electrkal oulpnt mpncjty

moms 33 permnt ofn unit's maximum d&gn heat input, divided by 3,433 Btut kwh, divided by I,ooCi kWhlMWh, aud mdtiplcd by 8,760 h&r.

ScqucntlaI us0 ofrmeqgy means: [I) For a top fngcycle cogennration

unit, tho usB Jraect heat h r n nlectxtetty production in a usah1 thonual a n n w epplicatron orpmcess;

(21 For a baitomingqdc wpnoration unIt, the use olrejeetheat from U 5 0 h l therm1 a n e w applicatInn nr pmcess in alcetricity production.

Tapping-cyda ccgenmtion unit means a cogenemtion udt In which the anergy Input to the unit is first wed to produrn useful pawor, including dmtn'dtyDand at Ieast somB of tho mjet haat born the eIeclrIcity production is then used to provide useM fhemd energy.

Total energyfnput means, with regard to a crrpnemtionunit, total energy of all forms suppliedto the- cogenemtion unit, excluding oaotgy produead by thn cogmmation unit itsel€

Total en= output means, with regard to a mganeetionudt, h e sum

Ot

gn.125 Emlsslms repcdng mqulrements for SIP revisions relattng to

551.123 andlor S1.124, oach Stats must submI t to EPA SO2 andlor NOx emIssIons data as described in this seciion.

(11 Alabama, Florida, Gaotgis, Illinois, Indiano, Iowa. Kentucky, Lnuisiana, Maryrand, Michigan, Mlnnasota, Mississippi, Missouri, Naw Yark.Nortb

Camlinn, Tonncsseo, Texas, Viglnia, West Vq$nia, Wkwnsin and fha District of Columbia, must report annual 112 manths) smfssions ofSO2 a n d N 0 x .

[21Alabama, Arkansas, Connecticut, Ddnwam, Floridn. Illinois, Indinia, Iowa, Kentucky. Lousianna, Maqland. Masachwatts. M i c h I p , MisslsSlppi, Mksowi, Naw Imny, Now Uark, North C d i n a , OhIo, Pannsylda, South Camha,Tennassee, Virginia, West Viiinta,Wlscoasin and the Disklct n l Columbfa must raport ozone seasan M a y 1 through September 30) omissions of WOx.

&)Each mvision must pmvid~ for periodicreporting by tho Slate d S 0 ~ andlop NOx emisslam data as specified in pmgmph (a] of this section to demonsbale whothar tho Stnlo's

budgets for 503 ;tnd NU8 edsdans. [a] Far ils fmnsport SIP rovision under

Carolha, mso, Pennsyhania, south

Unit means a s!atlonary, Iussil.fuo1- fired boiler or n stationary, fossil-fuel firud combustion turhina

UsuJdpowermoaw, with regard ta a cogmeration unit, electricity or mechpnfcal cnew mado availsblo for use, axduding any such energy used in tha pownr productian prpeess (which proms includ~ts, but is not Ihifed to, any on-site prnmsing or mntmmt of fuol combustad at thp unit and any on- site emission conrrds).

Usc ul thermal energymms, with YUE ad io a mmnmtion unit, thermal

11) Evory-year reporling cyyda As appliwbIe, M& revision must pmvlde f5r reporting a f S 4 and NO% 8mIssions dab every year 8s TolIows:

(i) Thn Stabs identified in panpph (a][l] ofthis soction must report to &A annual wnissiom data evary year h m dI SO1 and NOX sources wllhin tho State for which theStstsspecXed cantrol mcasuxes in its SIP submission uudor§§51.123 andlor 53,124.

(IO The Slates i d e n t i f i e d h p v p h (e)[Z] of thls section must rspnrt to EPA omno saason and summw daily

m i w &at is7 amissions data w e r y year h m all NOx (11 Made avaiIabl0 to an industrId or SOUTCBS w i t h i tha Stare for wbIch the

commnrdd process, ndudingmy h a t Sbto seedfled control measures in its contoinad in eondansato mtum or SIP submission under$S1.123. makeup water; fiii] IEsourcasrapaa 2 1 0 2 and NOX

(21 Used in a healapplimtinn (e.& amlsstons data to EPA in a given year spa= heating or domesfir: hot watar purmant t~ B -ding pmgmm appmved heating); a t undPr351.123fo] m~BI.124[0~ ofthis

[3] Uscd fa a spaa, caoling par1 or pursuant to the monitormg and applidion (i,~., [hemal auargy usedby reportlngrequhnant4 d l s o CFRpprl an absorption chfltarl, 75, then tha State need not provide

LIrilitypower dkfriba#fon system annual reporting of these pollutants to means tho poaion of an dcctricity grid EFA fursuch sources. o w a d at opeinled by autility and (2) Thyemrepor t ing cyde. AS dedicated to ddivvering sfeekidty to applimble, mch plan musf provide for c u s t P rn e Q . lrimnjal [;.e,, every third year] roparting

Rules and Regulaiiians 25333

ofSOa and NOX omfs5ions daia from all sources within the Steta

ti] The SLalns idantifid in paragnph M(1) of this section must rnport ta BPA annual embsians dotn wary third yoar from d l SO1 and NOx soutc84 w M i h l h o Slalu.

( i i ] The Stalas identified In pamEraph

dnla wary hid year from sources within the Slats. (3) The data availability requimmnnts

in 5 5 f . l l E must bo fulhwad for a11 &la submiltad to mcnt tho mquimmonts of parsgmptts [bl[11 and (21 of this section.

IC) Tka data reporfed in paragnph Cl offhis section rnustmeot tho re drements of subpart A af thIs part. qdl Approval ofannual nnd ozena scasan cnlculalion by EPA. Ea& Statu must submit for EPA appmval an example of the dFuIRuCiKt procsduro used to cdcdato annual and oxone season nmlssions dung with sulficieni idormation fQr E A to verify the mlculakd vaIue olunnual and mane season emissions.

[e) Rrlportfngschedules. [I) Roporls am lo begin wilh dal8 For missions oecuning in tho year 2008, wMch Is the first ear of bo 3-ym eyclu,

to be submitted o v w third yenrnnd avcry.yaar qc10 r o e am to ba submlttsd oach year that a tn'anninl TO ort is not reqdred. 73) States must submit data for a

mquired yeor na lntor h n 17 months aher tha end oftho calondar year for which tha data am collected,

in subpart A aft& part When d m i t t t n g a formal NOx budget crnissionsraport and associated doh, Stales 5baII nntiEy the approprialo EPA R IonalOlfico. XI Dejinitjons, (11 e~ us~d in &IS section, 'tozone sesson" is doGmds iollows:

h n e S M S Q ~ I - T ~ fivu month period fromMay 1 through Saptombor 30,

[z) Other words and t m s shall havu ulo meanings sct forth in appendfx A of subpart A offhis part.

elYARerZ008,f.year cycle mpo* am

(fj Data raporting procedures am givon

PART 7Z-PERMFTS REGUUTDN

m ~.Thuuuthnri cltatronforpart72 continues t~ rea ! as fdlows:

§ZZ [Amended] m ~Se~on;r2.~Tsarnendedby: B a. b o n d tho dofinflIon of "Acid rain missions limitation" by roplacfng, in paragraph (l](i), the words "an a€fecked unit" with tho words"tho nlfected unik

AuthOr@42 U3.C 7601 and 76% et scq.

25334 Fedenl Reegister/VoL 70, No. 91 /Thursday, May 12, 2005 lRulcs and ReguIations

at a source" and mpladng. in pamgtaph W!iil(Cl, the- words "camplIance subaccount for that unit" with tho words "complimce account fnr that source"; I b, Amend the definitionaPAdvmce allowancd' by replacing th8 word "unit's" with the word "source": II E. Amend the definition o€"A~owta or allowlion" by rnphdng !he words "udt ilcmunt" with tho words "compliance acwunt"; I d.Amend L ~ B d8h i l iPnOl"Ah~nco deduction, nr deduct" by replactng tbn words "complSanm subaccount, or futum year subaccount," with: the words "cornpIianeo amount'' aud replacing the wards %om nn o k t d u d " with the words "hm tho nffocted units rtt an ailected soum": u o. Amand tha definition ol"Al1owanco hnsfor deadinn" by mplacfng thn imrds"affectd unit's compliance subaaoual" with tho words "an affaetnd sourn's wmpltance ~ccouI11" and rnplacinpl the words "ths unit's" with h e words "&e sousca's''; m f. AmBndtha dofinitianol"Authotizad account mprwentntivn" by roplncing the words "udt acwunt" with thn words "compliance account'' and repladn tho w m d s 4 ~ 0 c t o t i unit'* with ~ h n wo3s ''afimtcd soum and &B allnctod units at

B g. Ammd tho dnfinilion of "Complence us0 dato" by roplaciag the word "wit's" wiul thsword 4 ' s ~ ~ 0 ~ ~ ' ~ ; II h. Amand tho definition d ' m c e s s omissions" by, in angraph [I), raplacing tho wmfs "an &acted unit" wilh h a words "tha affeelgd unib at an affecbd soufco" and replecing tha words "for the unit" with ihn words "for thn

h SOUXR";

m m. Amend the definition of"Spot allowance" by replacing the word "unit's" with tho word "sourco's": and

I b. h paragraph (01(2), ra words "unit amount" w i P G k c i s ''comnliance account". - 97224 [Amended] I 6. Section 72.24 i s amendsd by romoving and resorvlng pempphs td[Sl. b101, and Wtlo).

H n, Ravjse tho dafinitian of "CPpnantion unit"; 11 0. Adda mwdelinitfon of "Cnmplianm account"; and M p. Remove the doEinMnns of "Compliance suhacmunt", "Currant 57240 [bend&] year subacceunt", "Diract %la Subacrountrnrn, ~ a ~ ~ t ~ ~ yambawunt'*, M 7-B.Section 72.40 is amendad, in

paragraph Ial[ll, rsplaco the words and "Wnitaeeount". "unit's comwlianca subaccount" with

SOUICB"; M 1, Amand the dofiuWIanal"Gensm1 amount" by replacing t h ~ words "unit nmmt" with the wrds "wmP1fanm account": rn j. Amend the definition of'0ffsot Plan" by mpIocing tho word "urdt" with ihe word "source"; k Amand tha dofinlttun of

"Recar&tion,recod, or recorded" by removing the words "or subaccnunt''; 8 1. Ampnd tho definition of 'OSontce" by replacing fha words "undor tho Act." with the wards "under thn Act, provided that ana ormum mmbustron or process somcs that haw, under 6 7 4 4 ~ ) afthis chapter. a diffcrpnt dcsignntcd representative tban ha designated reprmntalivo for on0 or mor0 affected utility udls at a s o w t o shall bo b a t a d as boing induded in a sepamte s o m from the sourco that Includes such utility un1k For purposes of parts 72 through 78 olthk chapbr, but5hll bo treated as being Included in tho same sourto RS the s o w e !hat includw such utility units for

Fcdcral RegistcrlVol.

17310 (Amendedl I 2, Saclion 73.10 isamwdod by:

a. hpargmph (a), repIaca Lhb words “unit accauat for ctaach” wilb tbe wards “eompli~ee account for ea& suurco ihnt includcs a” and remove ihs words “in Each future nar subamunt”; and ropIace the words “unit nemunt for Bad?’ wlth the words “complionca amunt for nzch sourcu that includes a“ and roplaca tho words ”in the luture yaar subaccounts roprcsoating caalandar years” with din words “for tho years’: 57327 (Amend- = 3 .Sec lh 73,27 Is amondod in paragmphs [cIM and (c1M by replacinE t h o words ‘ U W s A I I O W W C O T & ~ ~ System account” with iho words “CarnpIIance account oltha sourcu that incluck the unit’’. iinao tmcndeq n 4.SEEtipn 73.30 is nmonded by: a ahpangraph[a?.addtheword “compIlancowl after the word "establish"; replace Ue words “alfected units” with tho words “affected sources”; and mphn the words “udt’s AlIownneo Tricking Syslern accaunt” with tho wards “SOUSCB‘S cornpIianes amount”; and n b. tn pmgraph b), roplnurtho word “unit” wilh tho word “SPWQ” and mplaco the words “Al?owancoTnckIng Systnm account’’ with the words ”general account”.

a 5. Section 73dl isamendadby: H a. In paragraph to], raplam the words ’an Albwanco %eking Sysiam account” with the wards ”a wmplanco account” and ropIaca the words “each unit” with &e wards ”each 5 0 ~ thnt IncIudps a unit”; I I x h p a r ~ p p h lbl,r~pfn~thcw~rdS ”an Ailowanco Tracking System account fur th~ unit“ with the words “a cumpUance accaunt forth^ s o u m that includes the unk unloss tho sourco already has a m m p I i ~ ~ a accouat”: and ~ c I n p ~ g n p h I c l [ l ~ t v ~ , c e p I a c ~ t h e words “’AUowanmTracWng Systom accounl“ with thswords “goneml aocoual” and rerncrva tho wards “I shall abida by any LiducIary responsibiliUas assignad pursumt to t h ~ biidng agreomont”. §t3a2 Wemoved and Reservedj R 6. Section 7L32 fs remavad and reserved. 97333 [Amenddl I 7. BctIon 73.33 isarnnndadby removing and FesorvIng paragraphs b) and (cl,

mb.lnpmmp i sCbl[fl anndIhl[211

§mi ~manded]

70, No. giIThuday, May 12, zooti

87334 [Amend4 I 8. S 3 d h 73.34 hnmondnd by:

as set forth L m v ; K b. In paragraph (el inbooduelory text, mmaw thn paragraph hedug and replace the words ”wmpllance. current year. and f h r a year” with the words “mmpliaocn eecount and general aFcaunt”. §ma4 Recordadon In accounts.

[a) Aftor a compIfmce account is es~ablished under §73.31(8) or (b), ~ L B Admhistmlor will racard in &a mrnplimw account any allowance alIdcntcd t o any fleeted unit at the source for 30 years starting with tho 10143 oflgss ur the year In which the cumplianm account is established and any alkiwancB alIocated for 30 years

year in which tho ~ompliancs account is establisbed ond tanshrad to the source with h a transfersubmltted in aecoxdanco with 573.5Q. In 1946 and mch par theream, aAer Adrnlnistmtor has completnd tho dductians pursuant to 573,35Lb), the AdrninlsLntor will record in tha tompliance account any allowance allocated to my affectad uult at tho source fpr the nnw I U& yaar [id.. Iho yoarthat is 30 years after the mlandaryenr fur which such deductions are mad3 and any dPWanCQ nthmted for u18 new 30th year and transFord lo Ihn s o w wlth the tmnsler submiUed in accordanca With 5 73.50.

&) Mer a general account is esteblishedunder 573.31[c], tho Administrator will record In !ha gcnnral account any dmvnnce alIocated for 30 years starting with the later of 1995 or tha year in which the general nmunt is established nnd tmnsferrod to I ~ B g ~ n d account with the transfer submitted in accordance- with I73S0, In 1996 and sa& year thcrrcaltor, after tho Adminiskatorhas completed the deductions ptlrmant to §73S[bl, the Administrator will record in thegeneral account any allowance allocated for tho new 30thgear [Lev4 theyear h t I5 30 years after tho calendar year for which such d a d u ~ o n s am made) nad transfarred i o tbe genneml account wllh the tmnsfarsubmitted h accurdanee With 573.50.

37315 [Amended] R 9. Section 73.35 Is amended by: rn a. lnpmpph (0) intmductoxy t& and pamgra h (a)[lf replace tho words ~~uni~t‘s’* w d tho word “sourcegs”; I b-hparagraph [al(2), PB lac8 tha word “StlEh” with t b e word“ThtW;

8. Ravlsa mgrnpl15 [a) and b] ta road

S1-g With the ht8r O f 19% Or tho

* L u a u

7 4 Ti ‘Rules and Regulations 25335

a c.In paragraph (a)[2l[il0replece the w~rds “the unit’s complianca subnccouni’’ with tho words ”ha socrurca‘s camplinnco accauni”: m d. In paragraph [al[z][li],replace the words “the unit’s wrnpliance subaccount” with !hs words “&0 souree’s complianca ac~aunf’’~ repInee tha words 4 ’ c ~ m p l I ~ n ~ subaccount for tho unit” with he words “SDUC~S complianca accounl“, and mplnco tho word “OP with fha Word “and”; H a Remove paragraph aItzl(lfL1: a 1. Addansw nm m E. ln pangrap 01 a“p (1 aplacotha words ”camplianco subaccount” with tho words ‘‘corn liance account”. add !ha wards abh for daduction undor paragraph [PI uf thls so~tBd’ aftor the words “deduct allowances”, and roplace tho words ” C P C ~ elfcclml unit’s compliance subaccount” with the words “each affectad source’s comdtance

6 [alI3];

account”: h.hpatPgraph (b)[2), mplacc the

words “allo~mnca remain in rho complianca suhccouni” wilh tho words “nllowancas uvoilnblo for dodudon undor paragraph (a1 of this sectJon ramah in the eompliancn acwunt”; a i Rcmova paragm h fi)[31:

forth below; n k. In paragraph (cl[z), replace the wards “for tho unit” with the wotds “lor tho u n 1 ~ nt tho sourceg, replace &s words “in its compliance subaccount.” with iha words “in tho source’s complionco nixaunt.”, wplacu &e words ‘%om tha wrnplfance subacccauat”with the words “&om !ha complianca amount”, and mpIace tbe words “mit’s compliaace subaeeount” with tha words “souzce’s mmplianm account”;

l , Inp~~ph(d) , repIee~thowords ”for aach unit“ wilh Iho words ‘Tor oach SOUICO’’ and replace tho word “unit’5” with tho word “soutm’s’’; and m m. Remova paragraph tal. gnss compnance.

deducted by Lhu Admidstrator in accordanea with a Stat0 SOZ mass omissions raduclion proprn undur §51.124[0) ofthisthnpternr othenviso p ~ r n ~ ~ ~ n t l y mtired in aeeordanm with §53,129(p) ofthis chapter.

serial num6or.The &horiznd account represontatrve fora source’s compliance account may request that specific allowances, identified by serid numbor, In tho wrnplianco acmuatke daduclad for a cnlondnrymr In accordance with paragraph (b] or (dl oEthis section, Such request shall be submitted to thn

I j. RevisB pamgmp % [c)[ll to read as snt

81 X iowaace was not previauly

* + I * *

{C][l] menLymli0n ofaIlowcurG9s by

undir § 13,5& §7418 [Amendedj

e& allowance idmtifiod by serial numher In tho tmnsfor: and

(2) The transferor account indudas

[31 If tho dlawanc~s idontifiod by

m 3. Section74,18 isamcndad in p"~"ph(d)~ymmovrngtholest sentonce.

sysiom ncwmt". I 11. Sodon 73.97 is ravisod ta madas foIlows: 97317 Ac#runt error.

501e disr;retlon and on his or her mm motion, comet any error in any A l h a u c ~ Tmking Qslern acmunt, W i t h 10 business days of making such enrrcctionl the Adminfstmtor wtll nollfy tho authorizad ammt representative for the account.

5n38 [Amended] x 12, Sectfon 73.38 isamond~d by: K ahparagraph [al.mplace rhewrds "dnlole &a nencral account from thn

T h o Admia'itmtor may, at hIs or her

Allotvnnco % d h g SySl8m," W i t h the words "close tho e a e d aeeount."; nnd I b. fa paragraph fb], replsca the wads "for a pon'od ofo yar or mom" with the wards "for a 12-monih poriod or longor"; romom tho words "in Its subamunk"; rppI~ca the words "will noiifyll with !hs words "may ~ ~ t I f y " : ~ m o ~ iha words 'hnd olMneted fmm h a Aluwaneo Tracking System": and ~ O V B tho last smtcnca. § m a I A f p d e d ] n 13. Seelion 73.50 isamandad by: I ahparagraph [a],remova thowords 'It including, but not limited Io, ~ S T E I S of an allowance ta md h o r n ePn!cmpomneous €urn y m subaccounfs, and transfers of an allowanca to and Imm complianco subocwlmts and cumnt year subaccnunts, and transfers ofall alhwancas dlacatad for 13 unit for each dondar yearia pe aiuity"; 1 b. In parapph &)[,il. remow th8 words ", or correct indication on ihn allowance tmsfor whom a rcquost involva tho trans hr oi the unit's dlowance in perpehlity";

sckal numbsrspecifind pursuant !6 §73.50~](1I(iil BTB subject to tho IimitatIon on tmnsfer impased pursuant t~ E 72.44b3)(315) of this chaplsr, W4.42 ofthis &aptor, or 5 74.471~) ofthis chapter. tho tnnsfnr is in accordance with such hitaff on,

(b] To tho extent an allawanes tmnsfot submiltad formrdal iw after Iha ~ ~ D W U I C O -fer daadlino htlndes allowamas dlamtod for any yearbafom the pmrn which the aIIuwance -For deadIiae o m s , the transfer ofsuch albwanco will not be recordnd Unttl afler eomplstion of the deductions pwmtant to 573,351bI for yearbafom tha year ln which the dlowance transfer deadlime QCW.

(c] Mora an nllowance transfar submitted for recordatron fails to meot the requhemenk d paragraph [a] of US SeCtIun, tho Addnistra(orwil1 not record such tmnsfer. 973.7fI [AmandEd] I 16.S~ction73.70~am~nd~dh : m a. In paragraph (e].mmova the &st two smtences,

b. In aragtaph [€I, replace the words "lho rn\areounL" by t h ~ words "~LB AUowancn Tracking System account": and c. In pangmph (i1[1], add the words

"suurce that IncIudes a" aRer thn words

§74A [Amendrdl 4. Socliun 74.40 is amended by:

rn a In paragraph [a], replaw &e wnrb "an opt-in accouni" with &o wads "a compUnnce account", replace tbo words "an account" wiul the words "a complhm ammt (unIess thn s o m a that includes the opt-bsnurco already has B compliance account or the opbh s o m has, under §74,4[c). a di€Famnt designated rgrosenutiva than &a designated represenlathe for the sollfeo)". a n d m o v e tho last smtence. x b. InpaFagraph ~),ropInce the words "allawanc~ account in Utl AIIowance Trachg System" with tho ivords "~~mplianee account (unless the s u m that includes tho opt-in sourn already has a compliance aceount or tha opt-in spurca has, under 574.4Ic1, B diffcrent hignatcd rqrmntaliua than tho designated reprcsantativa for thn source)l~. s 5, Section 74.42 Is wvisad bread as follo~vs: 574.42 Umltdon on transfers,

[d With rogard to 8 trnnslar request submitted for recordation during !he periad sktthg Januaq I and onding with tho allowance Wsfw doadUna in thn same year, the AdminSstmtor will not record a transfar oran opt-in

74 7 Federal RcgkterlVol. 70, No. 91 /Thursday, May 12, 21105 /Rules and Regulations 25337

b

allowanco that is allncatcd tn an opbln source for tho yoar in which the transfar mqunst Is submiltmi ora subsoqu~nt ycar.

[b) with regard to a transler rquest durinB the periad starttag with the day a h an elIorvance tmnsler d e a d l h and ending December 31 in the sama yoat, the Admhistratorwill nut tocord a transhr ofan opt-in dowance that is nllocated to Pn opt-insoUFeP Brn year after tlle year In which tho transfer roquast issubmitted 574.43 [Amended] I G.Sectlon 74,43 Ts nmonded by: u a. In parngnph (a), wmova &a tvords "in lieu ofmy m u d e m llanee

subpan I of part 72 of tErIs chapter"; I h In pmagtaph 011 [?I, mplaca tho word '8At" with the words, "Jn an annual campUaneo wrtifleation report for a year during 1595 k u g h 2005, at"; and

C h p m p p h Ib](8), rQplUC0 tho Ward ''Tho" with tho words, ''In an annual eumpUance mrtifidon report for a yo= during 1995 thmugh 2 ~ 0 5 , tho".

974.44 [Amended] w 7. Scclion 74.44 is mondod by:

a. Inpmpph (clI~)Iii),rmove the words "0pt.h source's" and add the words'Wtho sourcu that indudas t h m apt-in sourm" alter tho word "System": I b, Inpampphs (clC4fiiXC)l ~cl~~ltiii~D18 (cl~~I(iiiHE1 mtraducfnry taxt, and (el[Z)[1iil[Ej[3], replace the words 'Bpt-in sour& compliance subacarunt"wilh thw words "complianm amount OF the s o m !hat h d ~ d r s tbe o !-in saurcn" whnnever

w e. Xa p g m p h Ic)[zl(iiiI[F),roplaee the words "opt-in soum's EompIiance sub~cc(IunP with t h o words "cornpIlanee account of tho soum t h a t includes tbe opt-in saurcd' and m p l m the ~ m r d s ' L 5 a ~ ' s complinneo sukcount" With the words "wmplianeo ncurunt of the s o w that includm tha npt-in sourca".

§74A6 lArnendEdl M 8. Section 74.46 isamaaddby mmaving and resming pamgraph [bl(Zl.

CertIfifatiOnropDrt raquh$und*r

they ocnu; an i

574A7 [Amended] a 9. Scction 74.47 fs amondad by:

a, In paragraph (u][3)[ivll mmow the words "opt-in snurce's" arid add the w0rds"of tho s o w that indudes the o t in source'D &er tho word "Systnm"; m%Tapangnph lalI3l[v),mpla~o tho word "Each" with he word "Tho".

n L In paragraph [al[S), replace the wurds "AUowanca Tracking Syslom account of each roplncarnont unit" with tho words "compliance accnunt of each sourcn Includes a *plaCBmBnt unit"; I d, In paragraph ( c ] , ~ p h m thewords conunuas to fO'lOws: "unit account" with the wor&

t h o words "the SOUTCB that includes tlia opt-insource do= not hold". PART i ' i ' ~ x c ~ s EMISSIONS

1. The auttority citation for part 77

Authority. 42 US.C 76M and 7651, et seq. §m,3 IAmendedl u 2. Seekion 77.3 is amended by: R n. In paragraph [a]. roplaw tlis words "afleetcd unit" w l h tho words "&ettad sourccp" md raplace the word "unit's Allnwanco TmckIng Systam acmunt" with thn words "sourcoos comdinnco

and s f.Tnnpamgmph Id)(2](iI],replaen tho wards "AUowatrcaTradcing System RCWU& fortha opt-in soutee and for eachrapIacement unit" with the words "compliance account for oach source that includes the opt-in s o w or 8 rnpbcamanl unit". 574.49 IAmenldl

I O . Section 74.48 Is amended, In paragraph [a) inhductory text, by raplaEing tlre words "an opt-in s o ~ ~ ' s complianm SUbacmunt" with the words "the complhnce acconnt of asourcu that indudes an opt-in source". 97450 IAmendedl

11. Section 7430 isamendadby: u a, In paragraph (a@] intrPduetoryt&, add the w d s "SQUKB tbat indudes" d e r h e words "the account ofthe"'; I b.InparagraphIalIZlfih replace the words "apt-in source's complianca subaccount" wilh tha words "the complhncc account oEthci s o m that includes tha apt-in SOUTCB": and .I c fn pampph [6], replace the words "tho a p t h source's unit account'' with

with the words '*sim's wmplince account" and replace tha word "unit" with tho w a d *sourcai'. 877s [AmendedJ rn 4.Sectiort7?.5 isamcndodby: H L In paragraph m], roplace iho words "complianca subaccount" wilh !he words "cornpBanca account": M b. In pjragmpb (c), m lace tho words

subacwunt" Mth tho words "dlomtcd fw &hn ear anor the year In wbich tho

souteo's coniplinnm nccaut". and reprace the word ' b i t ' s " with thn word ~'50urcds'~; and x c. Remove pammph (d).

",1mrntheunit'scomp P ianeo

SDUrCa fa5 excw d s i o n s . fiom the

c I *

th~ wrirds "tire compliance account of remove the wards "mplacnmsnt unit'sD' ilre s o w that inctudes the opt-in and "(ATSJ", and nddtha words "of aach sou~crt"; and source h t inndudes a raplacement udt" rn d, In paragraph [d], mplsco tlm wozrds aRar thn word "Systm"; "M opt-in SOUKCED does nnt hold" with

577.6 [Amended] u 5. Scctionn,6 is arnondod by: II n. In paragraph lalll), add tho words "emu at the allected soured' affor the

7-18

sour& and iha affccctcd units at tha snum or of the alfeciedunit“: A b, In pamgraph &lbl[ll[ilIAl. raplam tho word ”unit” with the words “sourca or unit as appropriaW‘: and r p p l ~ ~ a tho word ”unit”wih the words “sautea or unit as appraprintc”.

c In p~grap~sMt311~cl.and (0,

25338

wards ‘Sulfur dhxtdn” and mpl~co Ihe w 0 d s ~ ’ 0 w n ~ and opentoa of th8 affaetad unit” wlth tho words ‘‘mvnurs

Fedarrtl RegisterlVoL Ill, No. QllThursday, May 12, 2005/Rules and Rqylatbns

(il Tho dcddon on the daduction of ropressnlalion submittedby a CAR daignated rapmsentstive or an application for a g e n d account

ranresnntdveunder subnaris AA submitted by a CAR authnrizod amount

CAIR SO, allowances. and tho ad ustmant of he information in P

deduction or VansferolCAIRSOI and operators rwpactivdv oltho affcetad su b mission and I ~ D decision on tha

allowances basad on tho infomtaaon as !&ugh ST. s u b p & u t h m u & No or adjusted, undor3 90.254 olthfs dhapter: subparts A h U tlirough IlII alpart 96 or

(ii) The wrrectlon OF an emr in a &Is &npW aftorihho words “tlndar tho CAfR SO2 AlIowanw Tracking System NOx Budget Trading Pmgram”: ttccmnt under 597.256 of this chaptar: I d. Add n O W p ~ g q k 5 [al[4), [a)@],

(III) Tbe decision on tba Lramfer of [alI6), (d115). (dlI6). and IdI(7l to read as ChlR SO, allowances undcr § 9E.261 of follaws:

PART78-APPEAL PROCEDURES

K LThetlUe ~lpart78isrovisedtoread a5 set forth above. I( 2. The aulhorit citation for part 7a

Auhritr:42 W.SC74D1, 7403. M i & continues to ton J as rolIows:

7426, IE01,and 7651, ctsq.

§lami lamancred] r3.5ectIon78.1 ksamortdedby: I a In paragraph (d111, replam tho words”pnrts 72,73,74,75, IG, or77 of this ehnpter or part97 ofthis chopid‘ with tho wnrds “pnri 72, 73# 74.75,76, or 77 aftbls &uptor, subpark AA through Ii of part 96 ofthis chaptnr, subparts AAA though M ofpart Dti a i this chapfat, and subparts AAAA though subparts ItZI of pad 06 dfh i s chapter. or part 117 of tbis chaptar”:

b,RovIsPparagtaph [b)[Z][ih 1 c. Add nawparagr;lphs @I(’t)o Mf81, and fi)[9) to rcad as rollows: gX.1 Pmpnse arid scope. . * * . a E]: : : (i] The wrrectioa of an em; in an

AlIowanca Tmcbg Systom account: t l . . .

(71 Under subpark nA h u g h II OF

(I1 Tho drcision on tho doeatinn of p a 9 6 oftiris chaplor,

thIs ehaptsr;

omisshs datu. i n c h d i m rohactiva (VI The finalization af contml poriod

th tcha lor; I € v ] d e finalization of control period

rnfs~ions data, including r&uact iw~ ndjUh8nt based an audit; [VI Tha approval ordkapproval ofa

petitinnunder $96275 of& chapbr, [SI Under subparts AAAA through

ofpart 96 ofthis chapter. til Tba decisfan on tba alIocalion of

CAIRNOX Ozone Soamn nflnwances under 5 g6,341rn)[zI or lcl(2lof this chaptcr. (iil The decision on t E l ~ deduction of

CAIR NOx Omno Season aIlowancBs, and Lnsdjusiment O f tha hformalian in asubmfssian and the darisian on fhn deduction or tnnsfor of C A R NOx Ozone Season allowancns hasad on tho informmiion as adjusted, undor 596.354 of this chaplart

tiiil The correction oran error in a CAIR NOx Ozono Swson Allowance Tracking Systam account undw § 96.356 D f thm chaptcr;

[ivl Tho declsion on the transfer of CAlR NOx Ozone Season aIlotrencm undor § 96333:

5783 Petltion lor adml&Ualve mvlew and request for evIdenUary hearing.

(a] * (41 Tbe ColIawing persons may

patitinn fnr ndmhistrativomview uta detision oftho Administretorthat L made under subparts AA through II oE part OE of this &aptmaad that Is appualabIo undpr §78A[E)t

til Tho CAR ddgnatrid represwtatlve for B unlt or sourco, or &a CAIRauhnrizod ncwunt repmsentatlve for any CAIRNOX Allowance Tracking Syslsm amnnto cnvcrcd by &B dccision: or

Oil Any iderested parson. Is) T h u hltowiog pOrSOII5 may

peUtioa fDradmJnIStrativu roview of B d e d s h of thsddmhishfor that is mede under subprds AAA through 1R: of part 96 ofthis chaplerand that I5 appedabre undws 78.’i[a]:

( f ) The CAIR designated reprcseniativo for a unit ar sourn, or tho CAlRauthorizad account repmwnhtivs for any CAIR SOt

F e d 4 Registcrf Val.

clmp~er and m y o ~ d s s b n monitoring or t o ofling rcqukements.

~ n y provision or mquirornont OF subparts AAAA through 1IIl of pnrt 9E of this chapter, including hhp slattdad requkements under 596,306 ofthis chapter and any omissfon manitnring or mpoding rcquhmants. 578.4 [Amended] H 5. Section 78.4 is mendad by addinB two now sontonms ~Rarfhe fikh sontonce in paragraph [a] to read as folIows: 578.4 Flllngr

[a) * Any filings on bPhaKof owners and operators of a CAIRNOX, Sot. or NOx Ozone Seasonunit or s o w shall be slgned by the C A R designated reprcsantntivn. Any filings on bahlf oFpmm with an Interest In CADI NOX alIawances, CAIR Sot a1lowanmsI or CAlR NOx Ozone Scnson albwanea~ in n gonml account shall bo aignedby the CAR authotizad account mpresnnlative.

§785 EAmendW M 6. Section 78.5 is amsndsd, In paragraph [a), by rmovlng the words ”, or a claim or onor ndfimtion was submitted,” the words “win the d a h demrnot l f idon” , ond the words ”or thn period for submitting B c l a h of ormr mu ficattoll”. g7RlZ pmv3edl I 7. Scelion78.12 is mended by: R a. In parappb (a) inbodtictory text, romnvo &a words “, or to submit a claIm of o m r notification": and E b. In pampapb [a)@), replnco th~ words “NOx Budget parmit” with tho words “.NUX Budget permit, CAIR pornit,’’. §?&I3 IAmendW r 8. Sectim7a,f3 is amsndedby, in pmgraph [bl, removing the word “also“* PART 96+AMENDED]

a 1, Authority citation forpart 96 is revised lo read as fo1Ims:

76Dl.~rd7661,elscq. I 2. Part 96 Is amended by adding subparts AA though El to read 85

Subpart A A 4 N R NOx Annual T M n g Pmgram GenemI Prouhsbns SCC 96.1~1 *05& 98,XPZ DeWtlons, DOJW MmmmtS, & b V h ~ D ~ , mnd

a-yms. 86.1W Appbbillty.

* * n * *

Auhntiiy42 U.!?t.~744M,7403.74’10,

rouows:

Rules and Regulations 25330

9B.185 MIRopt-lsr p ~ n n I l ContmtS. 96.106 Withdrawd born UURNQX hnnunl

96.187 C h n p fnregulalory status. 98.188 NOX dawance allomdons 10 GIIR

Subpart AA-CAIR MOX Annual Trading Prngmm General Provlsbns §S&.fO1 Putpose,

11 nstablish the modo? rulo comprising general pmvhtcns and thu dcsigaaled ropresantotIve.genntIting, Iillowanw, monitoring, nn opt-in pmvisions fat the State Chau Air Inlmstata Rulo (CAE) NOX Annual TmdLng Program. under sactian 11D ofthe Qean Air Act and 551.123 ofthis chaptor, asa means ofmitigalhg intorstam transport or 6na ptutimlates and nittogen oxidcs. Tho awnar or n smtor ofa unit or a snurco shall EomppY with the requirement5 of this subpart andsubparts 88 thmugh IS as a matier o f f ~ d n d law only if tho Statu with jukdktion ovm tho unit nnd the 50urc~ incorporates by roformw such subparts or olhenvise adopts the roquitcmeats alsueh subparts la erwrdancs with 551.123[0)[1] or @I of this chapter, the State submils to the Adminktrator onn or mom r e ~ i s i ~ n s of tho State IrnplernentatIon plan that indudo such adoption, and tiln Admhistmtor approves such revisions, Ifthe State adopts the requirements of such subpark in acmrdance with 551.123[01(11 or 12) of thls chaplor, t b ~ n the State authurizos t h o Adminislmlor to assist L a State in im lornenting thn C U NOx Annual ‘ d n g P m p m by earryIng out tho functions sat forth for thn Admhistrator In SUI& sabptuts. §9&102 Deflnltlons. The terms used in this subpart end

subparts BB through II shall Iravo Lo meaningsset forth in this section BS fol?ows;

Accounf number mwns the idontifieatinn nurnhrgivnn by the Adminishator to each CAIR NQx Allowance TmckJng System account

a lidtation on omissions orsulfrtr diodds or nihopn oxidns under tbe Acid Rain Program,

Acid Rain Prqmm means a mul& stato ntlfur dioxide and nitrogen oxIdss nir poltulion contml and emission reduetinn progmm astnblishcd by !ha Administrator undor title IV o f h W

Tmdfng Pmgmm

NOx opt-in unltr;.

This subpart and subparls B3 through

Acid nain ernisdons frinitdion means

25340 Federal RegisterlVoL 70, No. 91 /Thusday, May 12, 2005 /Rules and Regulations

Alloculc urallocation means, wilh remrd fo CAW NUx allowances issund undersubpart EE, thn detmination by h a pormitting authority or Iho ~dmInIstratnrofthr! amount orsuch CATR NOX ullowancw to ba inMally mditcd to a CAIRNOX unit a t P nnw unit set-asfdu and, with rqard to C A R Max alIowancas I S S U O ~ d e t ~ss. isa , tho dcterminath by the pmitting authority of tho emaunt of such CArR NOx allowances to bo initSally croditad to 8 CAR NOx -It.

Allowance imnsjerde~dlino mcms, fora watrol period. mIdnihcofMarch 1, Ifit Is a husinoss day, or, IfMarch 1 is not a businass day, midnight of t t e first businnss da theteallei h e d i a t a ~ y rodwin thn contF01 ppriod and is tho dpa8i11a by which a CAR NOX allowance mnsfer must bo submittad forrowrdation In a CAZR NOX sourcs’s mmpllanea aemunt in odor to bo usnd to m e t the s o m O s cllrrr NOx emissions Urnitation for sudh mnb1 parsiod In accordance with

mpmenbliverneans, far 8 GAIR NOx s0111m End oa&CAIRNOxunitattho SDUKCP, tbe natural person who I5 authodzed by the awnan and npentm of tho SOU~CQ nnd a?L such units at &a SUUXCE in nccordanur with subpark BB and Il orthis part, tu act on babalf offhs CAE dosignatadrepresmtatim in mattors pertaining to tho CAIRN& AnnualTradhg Program, Ifthn CAR N 4 r SOUTGO is a h a CAIR S g t source, thm this natural ~ B I S O I I shall be the samn porson BS ffm altmataCAlR dosignatad mprwsentative under the CAIRSOzTxadiag Pmgmm, IftheCATR NOx sourc~ is d s o a CAlR NOx & m e Season sDuTce. &on this natud person shall be tho s ~ m e PBEOE BS the altmata CAE2 designatad mpresenhlivo under the CAIR NOx Omno Sasscm TradIug Pmgmm. Ifflte CAlRNUx source Is also sublect lo tho A d d Rain Program, then this nntmdperson shall be the same persanns the dternate dedggnntod mpmontsUva under the Acid Rain

Automaled data mqukltiun trnd handling system or DAHS m w that componant ofthe continuous srntssion monitoring systorn, nt othar embbns monitoring system approved far llso under subpart HH ofthis part, dosipnd to interpret and convert individual output dpds fiarn pollutant wncantration monitors, ff uw m ~ n i t ~ r s , diluent gas monitors, and other wmponont parts oftho monitoring system to prndueo a mnihuous record of the measured pmmoters in tha measurarnent units requiredby subpart

5 96.154. Allcmate CAIEl designated

PM-.

Offhis part.

Boiler means an enclosed fossil- or o t h d u ~ b f ~ 8 d cornbuslion d e v b used !a produce heat and to tmnsfcr heat to rnclrcuIaling wafer. steam, or other medium.

Boti oming. qrck cogenemiron unit means a wgenemtiun unit in which the energy input to &e uatt i s Erst usnd IO pmduce usehl thermal onorgy and at oast same offho rajact haot from the mful thormal anergy application ar procass is then used for eleetrIdty production.

repmenfatlve means, with regard (a K gmm1 atcount, a responsible natural person who is sulhnrized, in accordanco witb suhparts l3B and II or this part, to mnsfar nnd nthmbe dlspose of CAN NDx ailawances held In the general acmunt and, with rugard to a compliance account, tha CAlK desfgnated repmscntati~~ of fie sourca.

means, for a [=AIR NOx source and cach CAlRNOx unit at &a source, Ule nstuml pason who k authrlzed by the owners and opomtm or the snum and a11 such units nt tho source, in accordanco with subparts 3B and II of this part, to represent and IfigaIIy bind gach o w n u t and opemtor in maltoa pertaining to the CAIRNOX Annual Trading Program. If

souce, then thIs natural person shall be tho m a person as tho CAIR designated a-epiwseatakivo under tho CAIR SO2 Tradtag Progmm. if tho CAIR NOx soufcn is also a CATR NOx Ozone Swnn 50u~ce. thm this natural porson s h d bo tho s ~ m e person as Ihe CAlR dmignald representative uador tho CAlR NOX Oznna Season Trading P m p m Ifthe CAIRNOX s w t ~ o is a h subject to the Acid Rain Frogtam, then this naturaI person sball bs LIte same pemnn as the dasignabd ropresanWvB undw the Acid Rain hogtam. CAlR ND~oUowunea rnm a Iimibd

authoridon issued by &e permitting au!hori@ under subpart EE; af thi part or 5 96,288 to emif one ton of nitrogon oxidos during a control pariod ofthe speciGcd calendar yuar for which tho authorhiion is allocakd or oiany calendar yaar thoroafkr undor the CAIR NOx Program. An auihcrizatlon to omit nitrogen oxides h a t Is not h a d undur provisions ofa S&ia implementation pIan that am opprnvcd under 551,123[0)[3) or [z) ofthis chaptorsha nut bo a CAlRNUx allowanca

CtUR iV& attowunce deduction or deduct CAiR NQx ullowonces maam the psrmm~fil wihdrawd of CAR NOx allowancw by the Admidstrator from a compIianw arwunt in order to ncmunt for a spacifiad number of tom of iota1 nitrogen oxides omissimtls ham all (=AIR

CAIll otttharized ocwunt

CAiR designated rcprescnlaalfwc

tha a N O x S O l u c o h d S 0 a a R

NOX units at a CAIR NOx s o m for a mntrol pairod, detsnninod in omordance with subpart HH of this part, or to amount far OXCESS omissions. W R NOx Ahmnca TmcMng

Syslcm means the systcm by whieh tho Adrninhlmtor remrdsdlacatinns, dcductions, and traasfars of CAIR NOx albwancw under tIm CAE NOx Annual Trading Frogiam. Such allownncos will ba allocated, hdd, deduetod. or transfemd only as whole aIIawnnecs.

CAIR NOX AlIo wa nce Tm &ng System account means an account in thn CAIR NOx Allorvaam Tracking Systom oshbliihod by thu Admhislralor far u os05 of rcmrding tho allocation,

!&g, transfarrIng, or dodudng of C N R N O x allowances,

Nos allowancas hddor hold CAIR NOX d o wanms means tho CAR NOX nllowmcos m r d o d h thn Admhiiihlor, orsubmitteJto t h ~ Adminiskutor for recordatlon, in accordance witla subpiuts FF, GG, pad II afthis part, in a CAIR NOx Allowaneo Tracking Sysiam amunt.

CAlEl NO, Annual ! h d h g P r u g n m mcans n multi-stnto nitrogen oxides alr pohdan control and omission reduction p m ~ n r n 8ppKOVcd and administorod b fha AdmiaiStrator in accotdanm lyiI subparts a thmugh of this part and 5 51,123 of this chnptcr, o$ a mean5 of rnitlgating fntmtata iraaqod of fme partidatas and nimpn oxidns. CMA NOx emissions limitation

mean5, fur a CAZR NOx SOUFCP, tho tomago equIvaIent of Lhe CAIR NOx dowaneas available for doduction for the SOUTC~ under 596;154[aJ a d b] for a contml porind.

C U N& Ozone Season source means a sourw that indudes one or mora CAIRNOX Ozone Season units.

CADI N& Oxane Season Trading Fmgmm means a multi-state nitrogun oxidwairpol1uUon m n b l aad emission redudan program approvod and administoredby the Admhbtmtnr in accordance with subpaas AAAA through IIII orthis patt and 551.123 of this chapter. as a means of mitigating inturstato transport of manu and nitmgnn axid=.

#SIR NOX &one Season unit muns a unit h a t Is subject io t h ~ CAIRNOX Ozono S w m Tmdhg Program under 5 il6.3C4 and a CAIR NOx Ozone Season opt-in unit under subpart IlfI of this P*

GUR NOX s p m means a SOUM that hcludcs ona or more CAIRNOX units.

CAM NO, unit mans n unit that is subject tu the (;AIR NO# Annual Trading Program under 996.104 end, except for purpose^ 0 1 § ~ 1 0 5 and

R d e d Register I Vd.

subpaFt EE of this part, a CNR NOx opt- In unlt under subpart ll of this art

binding and faderally Pnforeeabh written duament, or nrtIon of such

authority undor subpart CC ofthis part, including any pormit mwisinos, spccicifying the CAIR NOx Annual Trading Progum roquircments appliublo ta II CllIRNOx sourc~, la

to t h ~ ownprs aodupmtos and tlia CAR designaled rqmentativo of tho SW~C:Q nnd mdi such unit,

CAIR S a sourco r n w asourca thnt includes m u or mom Sot urtlts.

C M S a Tmding Pmgmm moans a multt-slata sulfur dinxido air pollu~oa conk01 andambbn raduction rqpm approved and admblslemd by $e Admintstrator in accordduce wjth subparts tlfcA through III of tbls part and § 51,124 of this chapter, as a mmns at mitigatiag interstat0 tmwport of 5ne partIcdatos ond sulfur d i d d o .

CAIR S& unit m e w n unit that is subjcct to tho CAIR Sa Tmdfng P m g m undor 5 98.2W and a C m SO2 opr-in unit mdm subpart El ofthfs part.

Clean Air Act or W meaflS the CIean Air Ad, 42 US.C. 7401, et scq.

G o 1 means any solid fuel classified os anthradta, bItumhaus, subbhmfnails, or 11gnib

Conl-den'vedJud means any fud [whsthar fn a solid, liquid, or gaseous stab) produced by lho mmhanid, ffinnnal, or chemical processing of coal.

&ifired meum- (11 Except for purposes ofsubpart EE

of this part, combusting any amount of coal or wd-deriwed fuol, dono or iu combinntion with my amount of any other fuel, during an year; or

(2) For purp~ses o!subpart EE af this part. wmbustIng my amount nrmd or cad-derived fuel, dona ur in combination with any amount of'nny otherfuel, during aspecihdyear.

Cogcnmrion unit mmtts a stationary, o ss 11-fual-firp d b o i h or sfati~nary, Fossil-fud-fwed combusltan turbias:

(1) Having equipmant u s ~ d to pmduca PIeaFicit anduselul thermal snargy for indus~~,wmmercial,heat~ng,or cuoling purp~sar; h u g h the sequentla1 us0 of enow; and

@)Producing during the 12-month period stptting on thn date the unit first produces efedridty and during any calendar year after which the unit fmt produces d~hidty- lil For 8 tnppingqde wgunoratian

[A] UsefnuI thermal o n n w not loss thnn 5 pownt oftoLal anergy autput; and

[B) Useful power that, when added to mehalf of useful thermal energy

C A M p m i t means Lhe legal&

docurnant, Issued by tE P permilthg

CAE NOx unit et th~sourco, and

m*tD

70, No. 91/Thursday, May 12, 2005/Rules and Regulations 25341

produced, is not less thm 42.5 percent raplacament of thn unit b B unit at the

enargy praduwd i s 15 percent armom unllt's date of comancemont of of total energy outpul, or not lass than eommcmirt1 oparation. 45 porcent o l total energy input, if (~i)ForaunItwllbadatofnr uselul thermal energy produced is less mmmcnmment oFcPrnmmia1 h 15 pnmnt oftotal maw nutput. operation= dofind in emgnph (21 of

[li] Fora bottnmlng-cych this delinition and that i s suhsequdy coganemtion unit, usoful power not less replacd by tl unit at tbn same source than 45 poreent of tutal hg.. repowered], the roptammont unit

Cumbustfun !udnc means: shal1 bn trcatsd aaopamta unit with 0 1 An enclosnd davtce eomprIsIag a a sapatale date for commencemunt of

compressor, combusfor, and a IurbIne cammarcid opemtion as dolined In and in which the flue gas m l t i n g fiom nragmph(4, (2). or (31 of thk the utmbustion of fuel In the combustor hinition as appro riato. passes thmugh tho turbfne. rotating the (3) Notwithstandkg p a m p p h ID d bJtbhlB; 8Ud this def in i th nnd e x a p t as pmvidcd

(2) 3ffhe aneland devicu under in 9 86.184[h) or 586.187b)[3). fora patagrash (I) of this definition is CAIRNOX apt-in unit ar a unit for combined cyda, any associated heat wWch a CAlR opt-in pormit appliestiun rewvery stcam generator and steam is submittod and not withdrawn and a turbine, CAIRoptin permit Is not YPI ismad or

Commce commerdd opemtion denind under subpart ll of &Is part. lhe m8ms, with r e g d to a unit sarvhg 8 unit's date Tor mmmenmment of genarat or: cammnrcid operalionshall ba tho datu

(11 TO have begun to produrn ~fmm, op which the owner or operator is gas. or otbmhatd medium to required io start monitoring and gonerate electricity for d e or use, mporting tha NDX cmisshns rata and Includmn tEt Rencration. except as the hrmt imut of thn unit undcr

of hta l energy input, ifuseful thermal same source), such dahs i all ramain thn

input.

c - - - - - - - - - _. . . . . .. . . . .

provide& 5c6.105, §gp.l84&)[1](i). fil For a mil that Is a CAIRNOX unit h1 Fora unit with a date lor

defmition and ibatsuhsaquautly undcrgaes a physicd change {athnr than raplacement of the unit by B unit at tha Same ScIuce), such date shall Lha unit's date of commenurment of wmmarcial opedon.

Oil For a unit tha t Is a CAIR NOx unit under Q 98304 on the &le the unit cnmmmces commordal operation as dabad in pmgaph (11 of this dafinitian and that is subsequently replacetiby a unit at &B s a m ~ saurce [e.g., repowered], &e replacement unIt skall bo treated 8s a separate unit wiuith asoparat8 date for commeacammt af cornmatdal operalion as defined in pmgmph (11, (21, or (31 of this dnrmition as appmpriats.

(2) Notwithstanhng paragraph (1) of this definition and except as provided in gS6.105, fara Unit that is not a a N& unit under 5 96.104 on the dah tba unit mmmenceS commerctal o ratinn as dofined in paragmph (11 oft& dnfinltim and is npt a unit under pmgraph [3] afthis dnfiition, tbo unit's data for mmmmcmant of cornmureid operation shall be the dnto on whkh the unit bammosaCAlRNQx unIt llndat C 96.104.

[J For a unit wrth a date For wmmeneemoat of commercial oporation as dofined in paragraph (2) of this dohitinn and that subsquedy undergoes a physid &ango (other than

undquos B physical chnngo (ahor b a n replacement nf tha unit by B unit at the sama sonrw). such dab shall remaIn the unit's date olcommeacernant of cummnrdd operation,

(ii] For a unit with a dnto for cnmmeneemont of c a m m i d operation 8s defined in pmgnph (3) nf this dnfinition and that is subscquontly raplaced by a unIt nt the same SOUTCB tog., repowered], thareplacsrnent unit shall be malod as n soparalo unit with a sapmta date for commoncamant of commercial opsmtion as defined In pangraph ll). (21, or (31 of fils definition as appm rinlo.

[41 Notwlthstandfng paragraphs Ill through I31 o€thk dofinition. fora unit not sewing a gaonomtor produdng nlectricity lor sale, the unit's data Of commencement of operalion slid1 also be the unWs date oPcornmoneement of wmmercial operation.

Lbmrnence opemiion moms: (I] To haw begun any mecbnniepl,

chemical, or alaemoalc prmss , including, with regard to II unit, std-up o€fa unit'scombustinn chnmbcr, as rovidad in §il6,105. 81 For n unit that is a CAE NO^ d t under $!IE.l04 on &a data !he unit cornmanens operation us dafinod in paragraph [I) of this dnlinition and (hat subsequuantly undergoes n physical cbanga (olher than raplacement of tho

25342 Federal RegisterlVol.

unit by a unit et thn same souFeelr such date shalt mmah 8 a unit's dah of commenmmont ofo ration.

(ii] For a unit Ihnt E a CAIR NOx unit undar f 96.104 on the data tbn unit cornmenas operation as dDbed In pmgrsph (I] of tbii definition and that is subsequently raplaad by a unit at tha samo SOWB (cg,,fapowmdl, the repIacernont unit shall bB matad as a s ~ p m t ~ U t with a sopamlo date fur wmmoncemonk of operation as dafiapd in paragraph ( I ] , (21, or (31 of this dofinitinn as appm date. (2) NdwIthstandPng pasapph bl oE

this definition and mmpt w provided in 596,105, foraunit h a t isnot NOX unit under 5OE.ln4 on the dat8 the udt w m e n c m opmuonas defmnd in paragraph (1) of this hfinItion and is nut B unit under para ph (31 of thls

c o m ~ n c a m e n t doperation sbau be the dnto on which tho unit boeomlts I! CNR NOx mlt uador I 98.104-

commencement of operation a5 defined in p q m p h (21 oftbi dofinition and that subsequently undergoes n physical change (othor than roplacamont orthe

date s i h remain tho unit's data of cornmencmont af opmlioa,

commencemeal of operation as defmd in paragraph (2) of &hh defiiltloa and that is mbsequanlly rqhcced by a unit at tho m n a LOU^ [a , ropowemd), ths replaanontunit shdbe- treakd as a saparota unit with a separata data fm commoncoment oFopoation as d&nd in paragmph [I], {ZI, or Dl o€ this dafiailfon as rtppro riala,

this definition aad oxcept as pmvlded h§SS.l84[h) or §96.187[b][3),fora CAIRNOX apt-inunit mawitfor wbich a CAE opt-in permit application is subrnithd and not withdrawn and a CMlt opt-inpemIt is not yet Issued or denied under subpart II OF thk part, the Unit's date for rommencemwnt of operation shall bn &a dam on which i h n o~yaar nr operator is required to start monitoring andra orting tho NUX omfssioas rata a n f k hoat input offhe unlt under § 96.la4@l[l][il.

commencemont D F O p 8 d O n Bs defInad in paragraph [3] of this dohition and that subsequmtly undergoes B physid change (olhet &nn raplacement of the unitby aunit atthosamusom1,such date shall ramah theunit's date of commeacernmt of operation.

commencement of oparation as defined in paragraph (3) alLhis dafiniuonand that issubsequantlyrep~cedby aunit

dofinItIan, the unit's r nta for

(i] Far a unit witha data for

UIlh b allnit 8t tho SHIIIB G O W ] , sil&

oil For E unit with D data far

(31 NotwllhstanJIlg pamgmph !a of

( i ] For a unit with B dato lor

(ii] For B unit with a daln lor

70, No- 9liThursday, May 12, 20051Rulcs and Regulations 1

at ills same source (e.g,. rupowamd). tho roplacernmt unit shall bc treated as a separate unit with a saprato d a b for rxlmmanwment of operation as defmed in patagraph [I], [2), or (3) of his dofinition as ap ropriate,

~umrnon s&moans a singln flu0 t h u h which omissions horn 2 or

record ortho stackgas moistum contmt. in crcent&O:

&)A carbon dioxida monitoring Systm, consisting ofa COZ polhtant Eclncenntratlon monitor (ar BR oxygen monitor plus suitable mnthmnticol equations ham which the COZ concontra tion is detivod] and an

m o m b i t s are exhausted. submated dah acquisition and handline svstm and nrovidinp. D Comdfance occount mcans a C M

NOX Ahwance Tmcking Systorn account, establishodby the Administratar for B CMR NOX s u m n undersubpart FF nclf of this parl, in which nny (=AIR NOX allowance allnations for the CAR NOx units at the s o w e are initially recorded and in which am held m y CAR NOx allowances avaflable lor use for a contrd period in order to moot tha SDU~CQ'S CAIRNOX emissions limitation In accordance with 996,154,

Continuous d s s i u n monituifng @rem or CEMSmeans t h o equipment mquired under subpar! HH of this part to smpla, analyze, measure, and pmwfde, by means nFrcndings recordcd at least O ~ C B evary 15 minutes [using an automatsd data acquIsitioa and bandhg system @ANSI), a pOFman%nt record of nitrogen oxides amlssfons. stack gas volumatn'c ff ow mtn, stack gas moisture contont, nnd o q p n or a b o n dioxide wncanmion applicablol, in a manner consistant with part 75 of this

- - " * - pemenont, continuois mcddcoi omissions, in pasant COl: and [SI An oxygen rnonilorhgsystem,

mnsfsdng ofan 01 conconkation monitor and an automatcd data aquisition nnd handling systom nnd praviding a pmnanent, continuous rmrd of 0 2 , i n r t 0 2 .

Cmkd perio means h period baginning January 1 ora Eplendar yoar nnd nndhg on Decembar31 of the 5ame year, Inclusiva,

Emlsshs means air polIutank exhhausted fmm a unit arsnurco inlo tho etmospharo, as m m d , m r d o d , and roportod to the Admidstrator by !he CAIR designated representaltve and as delsrminad by thg Admhilshtor in accordance subpart HH of thk aa.

nimgon oxidns emiltod by the CAlR NOx units at a CAIR NOxsource during a conrrol pariod that axceeds the CAIK NOx omtss~ons Iimitation i % r t h P S P U a

Excess t?nussmns means any lon o f

Fossiiluelrneans natural mas,

b i t & & &stems mquimd undar

wonsisting ofa stack flow rate monitor and an nutomatod data acquisition and handling systom and providing n perrnannnt, continuous record ofstack gas vohmetric flow rate, in stmdnrd cubic fee! per bour!scEhl:

[2] A mlrogrln midos concentration monitoring system, cunsiding O f 8 NOx pollutant conecatratian monitor and an automated data equisiiion and handlin~systam and providing a

sub artrnaftllispark 05 A fIPW mod toring system,

Fossil-fiel-jkd means, with rogard to a unit, combusting any amount of fosdl fuel in an ealendar yaar. Fueloirmoans any petroleum-based

fuol (including diesel he1 or pctroIn~m derivafivus such 8s oiI!8r) and any reqclcd or blandod potroleurn products or poiraleum by-products usnd ns a fuol whather in I! liquid, solid, or EXfIOU5 state.

General aeeount means a CAR N& Allowanea TrackIrrg Systom account, cstabhhcd undarsubpart FF of lhis

perman&& mnthuok recod-ofNOx

NOAihent'l moniton'nr! svstam,

part, that i s not B corn liana eceount.

Gross electrim! oufput means, wlth

emissions, in parts Br million (pprn); Genemtormeans a i eolca that (3) A nitrogen oxpdas emission rate (or produces electricity.

- ioiiisting a i a ~ ~ x pdlitint coneantration monitor, a diluant gas (COX otw mnnitor, and an aatornabd daIa acqukdtian and banding syshm and providing n pwmauont, continuous record ofNOx concanhatiant in parts per million (ppm], dilueni gas concentration, in percent COZ or 0s and NOx emIsston mte, in pounds per millionBritish thamral units [Ibl d tu]:

(41 A rnoislura modtoring system, as definad In §75,11@)[2) of this chapter and providing a parmanant, continuous

rogard to a coganoralion unIl, stectrtdty made available forme, hcludiug any such Q~CetFiCity mcd in tho powor pmduction p r o w s (which prows includas, but is not limited to, my on- site processing or treatment dfml combustad at tho unit and any omsitc o&sion conlmh). Ifeat input meam, w i h regard to a

specifid periud of t h e , thn product tin rnmBtultima) of Iha gross Calmificvdun of the fuel (in Btllnb] dhided by i,oao,[1oD BtulmmBtu and multiplied by the fueI Feed ratu into B combustion

Federal RcgisterlVol. 70, No. 93 /Thursday, May 12, 2005 I R u h and Regulations 25343

dcvica [in lb of fuelltimo], DS measured, recorded, and mportod to the Adminkbator by tha CAIR designated ru FsSabtIve nnd daterminod by the A L - iaislntorin acwrdtlnce with sub ut HN afihis par! and excluding ho!m derivod born proheatad combusU on air, redmlnled fiuo gases, or axhmt from athw~o~rcos.

Hcuf input ratemcans ~ L B amotmt of heat input Cfn mmBtu) dfvidd by unIt ~ p ~ m t m ~ time (in hr) or, with raged to

altributed to the fuel (in mmBtu1 divided by the unit opnralIng time [in hrl during whidi the unit combusts thn ha].

canlMc!ud armfigment means a unit participation p ~ w e r sales agreement rtndar rvbieha utiIity or industrial customerresmes. or is stititled to sedvu, a spacified amount or percentage dnmoplata aeity and

spaclEed unit arid pays its p r o p o ~ o d amount ofsuch unIl's iotd wsts, pursuant ta E conbact: I For the life ortho unW; I ! 2 Forammdativo !ann of no lass

than 30 yarnl inclu&ng wnbacls that permit m dcction hr early terminatinn; or

(3) For B p l o d no lass than 25 years or70 percant offhe ecmIamicltseful Iff0 ofthe unit determined as of tho time th0 unit is built, with option rights to FuFdhassorrale~e~rnDpo~anofthe namephte capacity andassodated snqy gmemtad by tho unit at the ond ofthe period. Mammum design hentinput means,

startloghm tha hinilld instalIatfon of a unit the maxImumamount o l h d Br hour stdhr) that nunit is mpn& of combusting on a steady state bask as speclGed by the manufacturer of the unit, orl stert;ng From tba ampletionof any subsoquant physical changa in tho unit resulting in a d m a s e in t h o maxhum ammat of ha1 perhour I;n B t u h ] that? unIt is capable ol combusling an a stendy shto ba~I5,sucb deereased maimurn amount as

ccifidby the person conduetiag tho

ModtoKing q s t w meam an

R SpodfiC fud, the EmOUnt Of haat illput

LiJwJ-ihe-unif, firm pawer

associatnd energy generate t by any

& S i d EhaPgR

monitoring systm that me& & D resquirmants of subpart HN of ihi part, IncIuding acoatinuuws emissions monitoring systom, an dlomativo monitoring qstem, or an oxcaptd monltoringsystem underpart 75 afthis &a ter. &st stiingeni Stat@ urFederu1 NDx

rmisshns Iimitation m a w with mgiird to a wit, the lowest NOX adsdons Iimitatlon (in terms o ~ l b l m m 3 ~ 1 that is applrcable tu tho unit under Stats ur

Federal law, regardless oEtha averaging period tu wUch Iha emissions Iimhtion a p p I i ~ .

Namepiare capadty m w , starting fmm tha initial inshllation of a generator, tho maximum e?eckia? genemthg nulput [In MWB? thnt the genmator is mpabb of producing on a steady statabasis and during continuous opnmtion (wIim not resslrictcd by s w n a l or other damtirig51 as specified by tho manufacturer Of t h Q generator or, starting horn the completh oFmy mbsaquent physical Ehange in the gmasmtmrasulting in an lnmasa in tho mwimum eI&iwl ganniaiing out ut

cfpmdudag on a %ady statslmls and during continuous optation (when not rastricfad by seasonal or othor dmtings).sudt inmased maximum amaunt as spncined by tha person urnduetin the physh1 chanEe,

~ i ~ - , j J m m n s , far putppsm or subpart EE of this part, urmbusting fuel oll Tor mom &an 15.0 pexent oftha annual heat input in a specified ear.

Opemtormeansany parson w 2 o operates, conkols, orsup~rvises a CAIR NOx unit or a CAIRNOX source and shall includo. but notbo lirnibd to, any hdding company, utility syslem, or plant manager ofm& I unit or source.

Uwncrmeans any oftha followlng per so^ [I) With regard to n CAR NOx some

ar B CNR NOX unit a1 n s o m .

(in MW4 thal Le gonmtnr i s cap E la

re actively: 8 Any hoIdw of any poaion of ihha 1ogd or sqdtabla title in a (=AIRNOx unit i fh~r ;ou rca oriheCAIRNOxunit:

fin h v holder of a leasehold ialarost ---. - - - I inaCAIRNOxunit nt thesaurco ortho CAR NOx unit; or

f t i i ) Any purcbaserof power h m a CAIRNOX unit at the s o u m or fhho CAIRNOX unit under B liife-or-th~~tdt. firm powm oonttac~ud arrangement; p v i d a d ihpt, unlnss exprassly pmvidnd for In a leasehold spemont, o m o r shall not induds a passim lessnr, or a person who has an equitahln interest haugh such IMsor, whasa rental papants ara not basad (eilhw directly or indireetIy) an the rnvmues or income from suchCAIR NOx unit; or

(21 With re@ to any g e n d acwuat, any pcaon who has an nwnership interat wilh respect tp t h o CAIRNOX RUOW~IKTS hnld in the goonera1 oeepwtand who is suNect lu the binding agreemant for tho G4IR nulhodzod account m p ~ ~ ~ ~ i t a t i ~ ~ to ropresent the parson's ownership Intersstwith respect to CAlRMOx Fil lOWllCES.

airpollution control ageaq, local agoncy, other SLpte agency, or o h r

perm~tffngouthorjtymrans tha Sinto

agency authotizad by the Administrator to issue crrovka parnits tu meot tho mqutrarnants oZiho CAR NOx Annual Trading Program in awrdnnca with subpari CC ofhis part or, if no sud! agonq has baon so nuthorfzod. &e Administrator,

Pdenbal electrim1 oufput mpacif~ means 39 pcrennt ofa unit's mnxtmum dcslgn heat In ut. diddad by 3,413 Btul kWb, dlvided1y 1,DDo kWhrMWh. nnd multiplied by 8,760 hrlyr.

& d v c ormceipuf means, when iderring to thn permitting nuthosky or theddminbtratcr, to come into possssion of n dommont, iaformntion, or corrospondnnea [ w h e l k son1 in hard copy ur by auhhorizod oIcctronic transmbsion],as Indicatnd in an oEdd correspondenw log, or by 8 nolalioll madn on the documsnt, information, or corrospondonca,by &a permiltrng authotity ortho AdmInWator in the w g u h EOUFSO ofbusiness.

Recordoiidn, rumrd, or recardud means, with regard to C A R NOx nllowanm. the mowment ofCAlRNOx alIawaocas by ths Adminisbtor Into or btrtweon CAN NOx Allowance Tracking Sysiam accpunts, forpurposcs of allowtIon, transfer, or deduction.

Refemtee rncihud means any direct t ~ s t mothod ofsampling md analyzhg foranaiFpolIu~antasspeeifiedIn 5 75.22 OF this chapter.

Repmered moms, with rogard t n a unit, roplacament ol a coal-fid bnilm witk ono ofthe fallowing wd-hd tcdhaologies at thsame SOUFCO as thu toel-lirsdboiler:

(I) AlmospharIc or pnrssurirod fluicbdbttd cumbustion: (2) Integrated gasification mmbinod

cy& (3) Magnatoh drodynamies; [4] Diroctdindirect mal-fired

Secratacy oEhotgy, a derivative of one or more of tho technolo ins undor p m p p I s (11 thmugk 15) of this definition and any otharcwl-hod t a c h d a y eapabIe of contmlling muItipIo combuslian emissions simultaneously with impmvad boibr or genaratlan afficicncy and with signifimnIly Dealor wmta mductroa mlative to tha perfmsnce of tschudonv in widoswoad cornmarcla1 USQ 8s of7muaq 1,iOOS.

Serial numbormeans, far a CAR N O x alIowance, the ualque idcntifidioa number assigned la caeh CAIRNOX alhwanm by the Admidstrator.

Seqnenlid usa P f energy means: ti) For a topptngqclo coganentian

unit, tho USO Of IQjCCt beat h m

25344

aleclriciry production in a usaM thermal energy applicatron or pracass:

Fedcral R~gisterlVol, 70, No. SitThursday, May 12, 2005

forms suppIied la t h ~ capemtion unit, Dxcludiancncm aroduend bu L ~ P -- - -

or (2) For a hPitoming-cycle wguneration

unit, tho usn O f I@Qd heat &om usnful thermal energy appliution or pmcess in shtricity production.

s t n t t t m , or insfallatinns locatad in ono or mom c ~ n t i j p u s or sdjaccal properlies under wmrnon contml oE the same pomn orparsons. Furpup~ses of section 502(c) nrthe &an Air Act, 8 Hsourc~,'l Indudinga "5rmrca" with multiple units, shall bn ePnsSdmda single "fdi ty ."

Stub means DM of thu Statos nr the District or Columbia that adopts tho CAIR NOx Annual Trading Program pursuant la §5~123to11i) or@) ofthis

*%:It orscrve means to send or transmit a dncummt, infurmatinn, or wmpondence b tho p~rson spadfied in accordance with the spphbla

Source means a11 buildings,

tmnsrnission nnd daliveg- Compliance with any "submission" or "SBW~CU" deadline shal1 bo detorminnd by &e dab ofdispaldh, txmsmk&n, m mailing and not the doto olremlpt,

W e V aparoiingpem'i moans a p m i t issued under titla V o€tha Clam Air Aet and part70 or part 71 of this chapler.

htle Vopemtingpennit ~zgulutfons moms t h ~ r e g ~ l a t i o ~ that the AdmKistratnr has nppmvad or b e d a5 rneeding fho requiremoats of utle V of thaCleanAirAdandpartfOor71 of this chapter. Ton m a n s 2,00(1polmds. For tho

purpose of datamining comp1iance with, IhaCAlRNOx emisdons Iimitation, total tons ofnftrogon oxides amIssiun5 for a control periodshall be cdcurated as the m u of all remdcd hourly omissions (or the mass quivdent oE tho xecnrdod kourly amfssion rates] in mordanco with subpart HH of Ws pori, bat with any mmnIaIng haaction of n ion equal to or greaterthan Ob0 tons dsamed to equal o m ton and auyr~maWng 6aCthn ora ton lass than 0.50 Lons daemed io equd zero tons,

Toppingqcte cogenemtian unit means a cogeneration unit in which the energy input ta the unit is first used io pmduce useful ~ Q W W , including dcthidtyr B t haSi Soma Of th8 mject hcat fmm the dectridty produdion is than used to provide asofd thermal oneqg.

T d d energyinput means, with regard to a cogenerathmit, total anetgy of nll

cogonmiion uiiit;tsdf, Toid energy ouiptlt means, with

r e d to a cogeaemtIon u n k the sum ofusaful paver and useful thermal anergy produced by h a cogenemtian Unit .

Unit means astatIonq, bssB*f inL firedboilernreombuston turblne or ofhor stationary. fossil-fuebfirod mmbustfon daviw.

Unif opemting day means 8 calendar da in which a unit combusk an fuol.

finit crpPralingfiourar bur&nil opemtfon means an hour in which a unit combusts any FueI.

Usefrrf powermeans, with rqprd to a cogonaratlon unit, dmtricity or r n e r h i i d snQrgy mud8 avalhble for use, excluding any such o n a w usad in tho power production process [which process includes, but is not limited to, any on-sile processing ar treatment of hue1 combusted at tho unit and my on- site omfssian conhls).

Use ut t!mrmaI e n q g mnans. with

'n$%%tkihbh to ~n industrial or commerchl process h o t II pnwr praduciion proeoss), excluding any heat cantahad in condensate return or makuu mtw:

(21 &en in a h e a h g applfwtion [e.g., spaeaheathg or domestiehot wator

h%yd~~n aspace wuling appUcalion We,, rbormal e n e w used by an absprprion chi!ler?.

Ulllitypowar dzshbution system means tho podon of an nleMcity grid owncd or opmtad bya utility and ddhated tn delivering nl&icity Lo customers, §36.103 Measurements, abbmvlatlons, and acronyms.

Measutomuats, abbmviations, and aaunyms used In this part am defined

Bhr-British thwrud unit. Corcarbon dioxide. NU nitrogen oxidss.

kW--kllomtt dackical. kWh-kil owat t hour. Mwpmopwatt electrid. MWh-megamtt hour.

pm-park pcr million,

rog KLT to a cagenomtion tmi1, tlicrmal

BS rouows:

h-%ur.

M I d h - l l I i h n BlU.

LpOUnd. sdh-stand8rud cubic fmt per hour. S M u l f u r dioxida HtO-watar. yf .Yfl=

596.104 Applbblllty.

CAIR NOx units, and any source that Tho following units in a Sfatashall be

/Rub and Regulations

includes ons or morasudi units shnll be a C A R NQx source. subjact to the re uiremonts oFthis subpa nnd % asBBLtuolrgbfTHafthtspart: m[a%xcopt as provfdod in pmgraph [bl ofthis secllon, aslationsty, fossil- fud-fiud troller or siationary, rossil- fuel-rid combustIonturbine sawing at any trma, sinca the start-up dtha unit's combustion chornbar, agonorator with nmopIate capacity ofmore tban 25 m 8 roduclng olechicit for sale.

cngenemtlon unit during the 12-montli period starting on L o data thn unit first producas B b C k i C i l y and continues to qualify as P cogenontion unit, a wpnenllon unit sorvIng at any tlmn a genemtor with namplata opacity of mom than ZS W e and supplying in any calendar yettrmorro than one-third

capacity orz19,000 MNh, iuhichovor is gmtnr, to my utility pmvcr Qstribulion system forsale. If a unit qualifins as B cogonamtion unit during tho 12-month pwiodsfarthg on tho dale t h o unit rust

mduces electricity but subsoqucntly SIQ

the unitsha11 bs subject to paragraph [a) of this S Q C ~ ~ O T ~ starting on tho day on which the unit first no loagor qualifies as II qpnamtion unIt 596.105 ReHred unltexemptioon,

[a](l) Any CAIR NO, u n I L that is parmanently raked and k not a CAE NOx opt-in ualt under subpart U &his part shall be cxpmpt from tho CAIR NQx Annualllading Prapm, except €or tho pmvlslons ofthis secLion, §il6.102. 5 9 6.1 0 3 . 5 96.1 04 , 5 9 8.1 0 6 [e)[4] through (81, § m O 7 , and subpats EE through GG af this part,

(21 The =emption under pampph (all11 of WB section sbalt become effsetivo the day on wbich tho (;ATR NOxunit i s pcrmnnmtIymtired. Within 30 days oftbe unSt's parmanant retirommt, h e CAIK designated ropresentativa shal submit o stahrneclt to tba permitting authority atbanvise raspnnsible for athddslodngany CAIR permit forthe udt and shall submit a co y of thostatoment to iha Afminislator. The statement shall state, In a format prcscribadby he podttfnE auLadl that the unit was

and d l camply With tho requ~rammtts ph {bl ofthis section. "'p"Wca 3) A errceeipt orthe statement

undor paragmph ta)[z) afthis sedton, tha permiiting authoritywili amend any permit undersubpart CC ofthispart covering the soupco nt which Ibs unit is lomatpd to add the provishs and requirements of tho oxernptlon undor p m p p b s (8][11 and [bl o€this section.

M for a unit that quoli E as as a

ofthe unirs p ~ t ~ t r n l

ronger quPifies as a Eogenemtioll unit,

pormaaenllymtirarm a 5pedEIc dab

25346 Fcderd RcgistedVol. 70, No. 9X/Tbursday, May 12, ZO05lRules nnd Regulations

thn CATR NOx SOU~CO and ~ a d h CASR NOx unit at the suumshalI kmp on sib at tho sourco each ofihn following damrnonts for a period nfa years from the date tho documant Is created This psriod may bn oxbnded for CBUSB, at any lime bofora Ihe end of 5 goars,h wdling by the permitting authority or the Administrator.

(il Thu certificate ofropraenta!ion under§96.113 for tho CAlRdesignatod rnpremnhtivo Tar fho sousm and sach CAIRNOX unit at the soum and all dwcunrunb that domonsfrab thn tnrth of tha statemonk in the cnrtlfieato of mpresnnhtton: providad that tho mertlficata end documents shall be mtalncd onsito ut the souren bayond

documnnts are superseded becausa of the submission of E now eertifidc of fept@Smtatiort undar 5 98113 chai~ghg the CAIR designa t sd repmentaff VG.

(iil All omIssSons monitoring idormetinn, in nccordmce wilhsubpad HH olthis part, provided that to iho oxhi lhat subpart HN ofthis part pmvldes €or P 3-year padod for rccordkeeping, tbs 8.yearporiod shall

ap$copies orall r e p o a , complianca mrtiticatiom, and otbersutmissions and all rneords made or re uired undor

(iv) &pres of dl dacuments USEE coinploto a CAlR pnrmit npp1imtion and any othersubmksion u n d o r h GAIR NC?~hnuaI Tnding Program or to demonstrate C D ~ liwito with tho

Tradin Program.

roprasentativo ofa CAIRN& snmo and cacb CAIRNOX unB at b e s o w shall submit tho ropork mquired u n t r t h o CAR NOX Annual Trading Pmgmm. iacluaing thoso under subpart HH of

such 5-yeaFporiod until such

d1f1 CAIR NOx Annual m%h# PfO

requrremollts of tgo CAtKNOx Annual

(2) T ~ B CAIR dmignatod

SOUKD. (31 Any pmvisioa of tbe CAYR NOx

Annual Tmding Propm that npphs to a CXIR NOx unit or tha CAIR d&ded

npplicatian, nC1SIRpmmitb oran exomptlon under §96.105 5hd1 be construed as exompiing o r oxeluding tho ownars nnd opmlors. and t h ~ CAR designaLodfepresenfativo, afa CAlR NOx source or CAfR NOX unit from complianca with any o h r pruvish of the upplicabIa, nppmved Staln ImpIemcntatIon plnn, 8 bderally onforoeablo permit, or tho Cl~m A i r ~ c t

g96.107 Cornpolallon of h e , (81 Unless otherwise stated, any time

poriod scheduled, under tbn ChLR NUX Annual ?kadIng Program. to bagin on the omrronco of ~n act or went shall be n on t€to day the act movent QCCIIS.

$1 Unlcss othenvisa stated, any uma parind schedded, under thn CAlRNOx Annual Tratllng Program, to begin bornre the occumnm of an act or wont g h d i bo computed SO that tho porid ands l h ~ dny before tho actor event

IC] Unless O t h E m b t stated, iftbn final day of any tirno period, undor the NUX Annual Trading Program. falls ou a weekand ora Statu or Fodeml hoIlday, tho Ume pnriod shdlbn extended to tho next budnoss day. 99LlDB Appdpmedures.

of the Administrator undor tho CAIR NOx Annual Trading P m p m arasnt fnrtt in part 78 ofthk chapter. Subpan BB-CAIR Designated Representative for CAIR NUX Sources 59L3io Authorlallon and responslbmtles 01 CAIR dB1gnated representatlue.

[a] &cept as pmvidad undw 96.113 I each [=AIR NDx source, Indud3n~ all CAIRNOX unIts at tha s o m e , shall havo one and only on3 CAIR doslgmtad reprwentnttve, withragard to all matters undar tho CAZR NOX Annuel l hd lng Program mneamhg Ihs SPUPCB ur any CAIR NOx unit at &a souPCB.

&)Tho CADI designated rapresentativo of tho CAIR NQx source sbll be selecteedby an apamnnt binding on the ownorsand operators of tha s o u m and all CAZR NOx units a\ tho source and shdl act in Pmordanm with hhp cerlilimtion statemeat in 3 n6.113(a)(4][iv).

(cl Upon receipt by f i n Adminisbaator ofo complete cwkGcate of rapresontntion under 5 96.113, the CAE dwignatedrepMsentative d t h o s o m shall rapreseat and, by his or her w rasentatinns, actions, InaELinns, m su%rnLsstoas. legdIy bind each owner and operator ofthe CAIR NOx sonrca represented and sa& CAIRNOX unit at tbu snurm in a3 mattars partainhg fo the ChIR NO* Annual Trading Promm,

OEcUrs.

Tho appeal prrrcedures for docisinns

hie CADI designated ropresenhtive and such ownm md wporators The o w a m and oppcmtors shall bo bound by any decision or odder Issued to the CAIR designati3d mpresentativo by t h ~ permitting authority, thn Adminislrator. or a wurt regpding tho sourco or unit,

(dl No CAlRp~~mit wlII be issued. nn emissions data rnports will be amptnd, and no GAIR NOX Allowance Ttackhg Sysl~m account will bu EstabIishd for a CAIR NOx unit at a sour#, until ale Administrator has rnceived a complota certificate dmpsonhtionundw 596.113 hraCAIRdwignatod topresontalive of tho sotme and tho CAIK NOx units at ihn mum.

[o)['I] Each subrnIssion undor the CAR NOx Anniral Tmdhg P m p m shall be submittad. signed, and cortifind by the CAIR designaled repmentativn for oach CAIR NO% saurce on behallof w h i h iba submkdon i s mado. Each such submission shall includa the rolIowin~ certifictllion stntcmoal by the CAR de5ignnatod mpresantativu: "I m authorized to mkn this mbrnicssion on bahall of the o~ynprs and opnrators of the snum or units for which th submission is made. I carti& undor psaalty oElow h o t r have personaily w i t l e d , and am familiur with, the slatemonts and lnformatlon submittod in this documant and all its attachments. Based OR my inquiry of those hdividuals with primary rosponslbiliiy for oblaining tho infarmation. X d i f y that the statamants and infnrmatioaare to Ihe best of my knuwIedgo and balinf h e , accurab, and complete. I: am aware that theroar8 significant pondtias for submlithg h h statements and informalion o r omitting requhdstatemonts and infurmation. including tho possibflity d f i n e or irnpdsoam~nt"

(21 Tho padtting aufhority and the Admidstmtor will a m p l or act on n submission mado on bDhaUoFowner or operators oi a CAlR NOx s a w or B CAIR NOx unit only if thasubmissslon has been made, signed, and certified In accordance with paragnph [e ] [ l ) offhis 6 o E ti o n . g 9 L I l i Ntcmato CAIR desIgnatcd representathe.

[a) A cortifieale ofreprosanlaifon under 596,333 mny dosfpate ouo end only one alternate CAIR das-gnatnd representative, who may act onbohalf of tho C A R desigaatedraprwentativa, Tho apoment by which the altsmate CAIR designated raprawntative is seleclad shalI include a prowdure For authorizing &u altomato GAIR desirnatedmresontative to act in Iim

Federal RegisterlVol. 70, No. 91/Thursday, Mny 12, 20U5/RuIcs and Regulations 25347

bj Upon receipt by the Administrator ora complete cerlifimta of rnprasontalionundor 598.113. any ropmsentation, action, inaction. ar submission by tho aftamate CAlR deslgnatgd reprmentativo ShaII bo dcamad lobo 8 reprosontalion. action. inaction, or submission by tho CAIR desi ated represontatfvo.

(cf&copt in thissoctian and §~96.102,96.110[8~ id [dl, 96.ffZ. 96.1‘I3.96,151 and 96.182, whanevor IhQ I O I 7 n “CAR ddp31Gd rnpmentath” is used in subparts AA througbndL~part,thotormsbbalLbe construed ta includetheCAlR d e d g n m i i repmentative or m y

ropresentativu. §4s,172 Changlng CAlR deslInakl representathe and alternate CAIB destgnated representative; changes In o m u s and operat-

la) Changhg CAIR desi&nded representative. The CAlR d - i p t d mpressn1alIvo may bo ckaugod nt any timo upon m d p t by tho AhSnism\or olnsupmseding wrnplots cettificato or mpsentnllon undor §SBmll3. Notwithstanding m~ysuch chang~. dl ro mantatiom, actions. inactions, 011d sutmissions by the prev~ow CAIR deslgaatodroprasrrntntive b e r m the tima and date when tbo AdministratPr ~ e e I v e s tho supersoding cer t ib t s o f mprcsantationshall be hinding on tbs new CAlR designated mprmnntatlve and tho awnms and o erntors a C h CAIR

tho SOUIc8.

designated repmenlati~e. The a?tmate CAIR designabd ropr%s~ntativa mny bo c h q a d at any tim0 upon rtmipt by the Admidstrator ola supmeding complete cartineate oFrnpresentatioa undar §D6,113. Notwithstanding any such chango, till representations, a d o s . inactions, and ~ ~ b r n b s f o ~ ~ by the pmviclls dtemata CAIR &paled repremitathe boforo tho tima and dale when the Admhinistralor rccaivps the supaaadfng certtl icat~ oPreprosPnlaCIan shall be bhding on &E now alternats C A R dosipatod mpmmtative and ih0 owners and opamtors of tho CAIRNOX suurco and &a CAR NOx miis at the

IC) Chmges fn owners and opcmtors, (11 In tho event a now amor or operator of II CAR NOx s0urc:o or fi CAIR NOx unit is not included in the list of own~rs and opmtors in tho ~ertificata of repressatation undor§~6.113,such new Omor or optator shall be daomed ta ba subinct to and bound ky t h ~ arrtIlicab ormrrrosontation. fho reprwentatioas,

8 h l & WR dBSiPBbd

NOx source nnd I g 8 CAIU NUX U n i t s at

(b] Changing ulllemote CAM

sour#.

tho CAIR designated raprewntative and any altemato C A R dosignated representativa ofthe source or unit. and the docisions and orders of !he permitllng authority. the Administrator. or a mud, ns if the now owner or opsntor wera included in such Ilst. (2) Within 30 days following any

cbnge in the Ownas and operators of a CAIR NOx SOWCE or a CAiR NOx unlt, including tho addition ora now ownor or operator. the CAR designated mpresentative or any alternato CNR ddgnaled sopressntntivo shall submit a roviston to the certificata of represontation undor 5 88.113 amending tho Iist ofowncrs and opcrators to indude rhs change. §96.113 CerUficateol reprwentatlon.

mpresennlntion for a CAIR designatad reprosontative or I.W alternate CAlK designated reprasontative s h d includo tho following elarnents in a format pmscrihd by tho Admhniskator: (1) Identification of the CAIR NOx

SOUTCO, and each CAR NOx unit at tho SOUICO, for which the corcificate of ra mscntatian i s submitted.

fz) ~ h o m e . address, eemail ad& [Uany), talephone numbsr, and fatshdle transmission nllmbat (if my] of the CAIR deslgnatad rsprmentative nnd any allomale CAIR designated

f 3 ) A IIst of tho omeps and operators of the CAfR NOx source and of each CATR NOx unit at the 6ourca.

(4)Tha foUowmg certification statements by the CATR dosignated reprcsenlaUve and any a l lmate W designated reprusmtative

CAIR designatad representolive or altmato CAIR dcsignaled mpmntative, as applicable, by an agreemonthinding on tho OWIDXS txnd opwaLars of t h o sotma and each C A R

necessary authority to carry out my duties and responsibilities under tho CNR NOx m u a l Tradhg Program on behalf of the owners and operators of tho so- andoFuachCATRNOrunit

[a] A completa C Q L i i k a t O of

te l U ~ b ~ V 8 .

(0 ‘7 certify tbat I was selected as the

NOxunit Bt~tllBSOUfC9.” (ii] “1 WmfY that I hRV0 dl tho

the SOW and that each sucharmor and opnmtor shall bo fully bound by my t e rasontattotls, actions, inactions, or

[iii) ‘‘1 cerltfy that the o*nars and operatoa ~Ethosnum and ofeach C A E N& unit at the soum shdl ba hound bv anv ordar tssuod to ma hv the

S L L l s S I O I l S ”

or whom B mtomar purchasa power fmm n (=AIR NQx unit undor a lifa-of. Lkwunit, firm power conmetus1 m g e m c n t , I c d & that: 1 ~ V P givon a witton notico ofmy sdcction a5 tho ‘CMR dosignatad ropwscntativo’ nr ‘allcmets CAlIl dnsfgaoted raprEentativa’. as appucabla. and o l h ngreamen! by which I was sdectcd io each owner and oparatw of &P SOUFCB and ofeach GASRNOx unit at ihe sourcn; and CAfR NOX nl10w;mcas and pmceds oltnnsaclions Involving CAIR NOx alhvancas will be deornad to bo h d d or diskihutnd ia pro artion to cnch holder’s Iogal, equitable, Lasohold, or contmctuat wwvadon or snti~Iment, oxcspt that. Ilsueh rnuIliplo holders have pxpressly provided for (1 different

pmcceds olmnsactI~ns fnvulvhg CAYR NOx aIIowances will bo deornad to tm heldor dsltibutod In accordanm with the contra+’‘

(51 Tho signaturo o l the CAR dasignaled rapresantative and any nltpmata C A R desjgnatad 1 mssntatiwand thn dntcs SI ad.

pcnnit l i authoriiy or thn Adminishtor, documents of agreemaat rolened to in tho cortilicate of reprosentailon shall aot bn submitlad to Lhep~rmiking authority or tha AdmInismlor, Noithm the permitting authority nor tho Admidskatot shall be undorany obligation to raviaw or edueto thesuflicinncy ofmeh daturnents, if submitted. 596.114 ObJ&JonsconcemIng CAlR deslgoated repwntathre.

[a] Onco Q cornpleto enrtificato of ropresentation undergsG,lls has befin submitted and m c ~ i ~ u d . tha parmit~g aulhority and the Adminisbtor Will mly on the eorlifimh o h Fasuntation unlass and unda supersehng mmpleh c e r t i h ~ ofmprasentation under 596.113 is raaived by the

dfstrIbution el CAER NOx ~IOW~IICS by ~ ~ t l b ~ t , CAE NOx ~ P W ~ T K Q S and

Unloss olherwiso roquimgbby !ha

or(ti), no ibjeciran or othor communication subdttad to the permiltiag authority or tho Administmtor conceolbg ff 10 authorization. or any ropmontatian, action, ImcUon, or submission, of tho CAN dasignatod mpresanbitivo shall affect any representation. action, inaction, orsubmission of the CAR designated represenbtive or the finality of any docisian or ordar by tho

25348 Federal RegisterlVoL 70, No. 93. (Thursday, May 12, 20051Rules and Regulations

any pdvato legal dispute conctrming tho authorization orany mpre5cntation. action. inaction. or submission orany CAIR dosignmd ropmsntativu, including privato legal disputes c c n c d n g thc pmeeds of CAR NOx allowmaw tmnsfers. Subpart CC-PetmIts 596,120 Genemt CAlR Annual Tmdtng Program permit nqulrements.

[a) For each CAIR NOx souxu roquired to hnva a tido V opersting ponnit or r q u h d , undar subpart U of t h i s part. IO havo H title V ~ppamtin permit or other ladomlIy enfornoat 0 permit. suchpermitsh11 Includo n CAR p e d t adminlstmd by tha pctmitting authority for tha title V opomlin permit or the f a d d y

CAIR podinn OP&P title V pornit or other f edody enhmable p o d t as apphble shnll bo abatnistmd in accordanca with the permitting authority's titlo V opcmting o m i t s

m72 ofthis chaptcrorthupflrmilting authority*s regulations for othm rodorall enforceable permits as

athanvka by thh subport and subpart n Olhk port.

Ibl Each C U pormft shall contdn, wibmgard to t h e ~ N 0 x s n u r c e a n d th CAlRNOx Units at tho source mvcrod by tbu CAIRpmit. all applimble CAlR NOx Annual Tmdhg Program, CAIR NOx Ozona Season Tmdlnp m m m , and CAIR SO2 Trading Program raquiroments and shall be B comphtn andsoparable podon ofthe trtleVoperatlngparmItaro~~ fcdpraUy aaforwatrh permit under

s

enfoma E la p m I t as applIcabla Thn

regulations promulgated un B (tr part 70

a p p h c le, axcept as pmvidod

pmgraph (a] ofthis SBetIon.

§96-121 SubmIssbn of CAR pmIt appucaff ow.

designatad mpresuntatlvo orany CAR NUX s o u r c ~ required to havo II titla V opentirig p m i t shaU submil to the pamittinl:authority B momplets CAR pnrmitapplimth ilndur f I16322 for t h ~ s~urca covering aach CAIR NOS unit at t h o source at least 18 m u n k (or such l w e r lime provided by the permitting authority] bofare he latoor orJanuary 1. 21109 or tbo dato on which tho CAlR NOx unit mmrnenccs operation.

[bl Duty tu Reupply. For a CAIR N O X some required to have a tifle V operating pcrmIt, tho GAIR daslgnated mpresmtativs shalt submit a comploh

parmff application under 5 nS.122 for the sourca covotiq oach CAIR NOx YnIt at the s o m a to mmw tho permit in nceordanco with &a permitting autIiorityL title V operating mts regulations addressing permit mnewa1.

3 9EdZ2 Informath requItoments for CATR permIt applimtlons.

s h d h&de tho d o w i n g dements concerning the CUR hQx saum for which the 8ppfidOn i s submitted, in a format prescribed by tlie perm1tUng authority

[a1 IdontTDcatfon of b e CAIR NOx sourco;

[b) IdentificatiPn aDeachCAJRNOx unit at the CAIR NOX source; and

(el Tho standard requiremmts under 5 96,106.

59G.123 CAlR pennlt colents snd tam.

a Format prascribd hy the permitling ~~th~ri ty , all elernunts requImd far a

[SI Duly tu a&. The CAR

a m Ieta CAIR omit appliution

(a ) Each CAlR permit will contain, in

SfalO

complota CAIK porrnlt appIlmlbn under §96.122.

(bl Each CAR pomIl i s daemnd to ineorpornta automntidy the doEniUans orterms undor §96.102 and. upon recordation by tho Adrninfsmtor undersubpxi FF, GG, or I? of tbIs part, evory ahWtion. !sander, or dedudon ofa CAR NOx allowance to urfiam tho compllanca nccuunt of ths C A E NOX s o w covered by the p w i t

[cl The t o m o f Lbo CAIR p~rmit will bo so! by Iho pomittlng nuhodiy, as nmssary to fadIitatfi Enordimtion of he mnewal af the CAIR pormlt with issuance+ m k h , ur renewal ofthe CAIRNOX soureek tiiIa V operating p m i t ur othor federally anfornablo parmit as appkabla 996.124 CAlR pennllrwIsBns.

parmilting authority wi11 reviso the ChIR permit, as nwessary, in accordmmwith tho permitting auttorily's tillo V oponting permirs regulations ar tlie permitting nuthodty's regul~tions for other MenIly enforceabl~ pormib as applicabla add-hg permit r~visions.

Subpart D ~ K e s e m e q

Subpart EE-CAIR NOX Allowance Allocations

gs6.14Q State tradlng budgets. The State hding budgets for annun1

allnmiIons of W R N O x aUowances €or Ihn control pwiods in 2009 ihrough 2014 nnd In 2015 and thereaRor rn rcspectively as fdows:

Wcept a6 pmvided in 5sn.123b1, tho

69,020 144

99*445 65,321 76,230

108,935 32,6992

25: 27,724 65.304 31.943 17,007 59,871 45,M7 am

108,667 99D49 32,6 62 50'973

181 ,014

State ftadhg budget lor 2015 end h e m

aftor (msl !i?,51?

I20 azm 55,2# a m eo,m 27,243 a,= am 23.104 54,42a 26,203 l4,B39 49,892 M,M4 51,819 4 0 s 82541 27.2 I9 42,478

<50,845

Federal RcgisterlW, 70, No. SIIThursday, May 12, zoos/Rules and Regulations 25349

statu

5S6.141 TImIng requirements for CAlR NOx allowance allocations.

parmiiting authprity will submit io the Administrator the CAR NOx dlowanca slbcations. in a format pmscrihd by t h o Admlnislrator and In accordance 1~1th S 96,342b) md cb), Rr tke conid perfods fn 20Q9,2010,2011,2OI2,20f3, and 2014.

OEtober 31 of Each year them&, the pmitting authority wiII submit to &a AdmhistmRr tho C A E NOx albwanco allocations, in a format prescribed by thn Administrator and in accatdanee with §98.142(2) and 163, Tor t h ~ wnbd pmhd in the SIX& year &OF !hn year of t b o npplicable deadhe for submission under this parap h,

(21 Iftha perm& authority faik to submIi ta the AdministmtPr h a ClilR NOxallowance allocations In accordanm rvih pamgraph (bl[l) of this sedon, the Admmktmtarwill assumo that tha altomtions olCMRNOx allowances for tho applicable control poriod nm tho samoas for tho control pariod that immadiatdy procoda the applicablo conhnl period, axcopt that, if the appIfcabIa wntml pcthd Is In 2015, tho Adminkhator will ilssumD that thn &cations equal 83 pemnt of ha docaUons for tho mahl pedod that immadiately mcedos the applidle wntml o d .

October 31 of each year thamaftor, !ha permitllag auihorlty wiU submit to the Adminishalor !ha CAIRNOX dowancn allo~tioas, in a format prescribed by the Adminklmtor and in accordance with §96,142(~], [GI, and (dh for ttrs contml period in tho year ofthe appfiable deadlina fnrsubmission undor thi parapa h,

submit to tha Administrator the CAIR NOS al~owanco allocations in accordanw with paragrapt [c1[11 of thts soction, th Admbistrztorwill n s s u m ~ that &e a l l m t i m s oECAIIZ NOx aUowancas for the applicable conhl pnriod am the same as for tho watml parind tbat immodIatdy precadss the applicable control pnriod, exeopt that, if the applicable control period is in 2035, the Administrator wl11 a w m a that thn

[a] By Odohar31.2006, tho

[bl(l) By Octobar31,2009 md

[cl(l) b y October 31,2009 and

I21 Ifthe p m & nurhmirity fails io

immediately prewdes tho applicabla control perIod and except h a t any CAiR NOx unit that would otltenvise b~ aHocatod CAR NOx allowances nndet 5 BG.I42(a] nnd @I, as d l as under § SS.l42(a?, IC], and Id], for t h ~ applicable conhl pon'od will be assurncd to bo alhmled no CAIRNOX alIowdncos under 5 913.242[3), IC), and Id] for the applicable conkolperlod. 596.142 CAlA N&allawancealfoeatlons.

[a][ll Tho basnlina hnat Input (in mmS;u) wad with mpcct la CAIRN& alIowaaca allacatiom undor pamgmph (b] of this saction Tor oach CAR NOx Unll wlil ha:

[i) For units comrnnncing operalIon hefom January 1,2001 ihsavmay ofthe 3 hlghest amounts of the U t ' s adjusted control perioil heat input for 2000 through 2004, with the adjusled contra1 poriod heat input for each year dculated as follows:

(A] Ifthe unit Is coal-rued during the year, the unit's control efiod heat Input for such year is multiplrfld by zoo pment:

03) If tho unit Is au-fired during rho year, tke unit's contml periodheat input for such year fs multipliedby 60 percnnt; and

[C) If tho unit is nat suKect Io paragmph €alalMMAl or (el of this S B ~ ~ ~ O I I , aeunit's control pariod haat inpat for such year i s multipliod by 40 pctcent.

[ii) For units c o m m c h g operaLion an or afterJanuary I, 2001 and qmathg each dondaryear during a period O f 5 or mors cnnsecutiva dendnr gcars, the avamge of t h ~ 3 highest amounts of tha unit's Mtal convertad controt period hoat input war tho EJStm216 5 years.

(Z) [ i ] A unit's control period heat input, and a uniios status as coal-lired or oiI-fiid, for a mbndar year under paragraph [rrl(rl[il of tbis ssCLjon, and a unit's total tons of N& omissions durhg a calendar pnarunder pamgraph (c][S] of this sectIoa, wilI bo determined in nccmdaace with part 75 of fhls chapter, to the oxtcnt the unlt was othcrWms subject to the requirements trf part 75 01 this chapter for the year, or win be bassod on tha best avaihbIe d a t ~ reported to the pemitUng authority far

othcnviso subfcct to the re uiremants of pxt 75 ofaiis ~bapler

[ii) A unit's convortnd control period hoat input Cot a dendar yoar spocifiod undor pmgtaph lal[ll(Iil of this s d o n equers:

{AI Excopt 8s provided in paragraph (al[2l[ii)[B) or IC) ofthis section, tha control poliod gross dcctrical output of the gonorator orgenemtnrs servad by the unit multipliedby 7,SOO Btulkwh, if the udt is w n l - h d for tho year, or &a75 BtulkWh, If the unit is not mal-fmd far .the yoar, and dividod hy i,ooo,aoo Btul mmBtu, pmvidcd thntifa gonorator I s scrvad by 2 or more units, then the gross doetrim1 output d l h e genorator will hn attrlbubd to ouch unlt in proportion to &a unit's sham a€ the total c~ntml p d o d heat Input of such uniu forihn YCQG

[n] For a unit that is a boilwand has cquipmont used ta produco electricity and useful thnmal energy fur industrial, commmial, hcatiag, Or cooling purposcs through tho suquontiat WB of enrarpy, Lbe Iota1 heat snew bl Btu) of fha staam mduced by tka boilar during tho conkofporiod, divided by 0.B and by 1,000,000 BhrfmmBtu: or

[C) For n unit that b a comhustIon turbheand has equipment uscd to prnduen e l d e i t y and useful thermd anergy for Industrial, crrmmtrrdal, heathg, or cooling purposos tbmugh tha sequential we oF energy, the control period gross oleclrical output of the enclosed dWkQ EarnprIsbg the compmssor, cambustar, and turbIne multiplind by 3,414 BluikWh, plus the total hoat energy (in Btu) of !ha steam pmduad by my assuclatad heat

wnml period divided by O,8, and with tho sum divided by l,oon,aoU Btul mmBtu.

b][i) For apch eontml pedod la 2009 and thereah, tho permilting aulhadty will alb& to all CAIR NOx units ~II ibe Stat0 rzlnt havo a baseline heat input [as dotorminod under parapaph [a) of this SeclIon) a lotal amount of ChlR NOx allowanas equal to 95 percont for a control peAod during 2000 h u g h 2014, and 47 pereent for a conk01 poriod during 2015 and thereaftor, of Iha tom ofN& emissions In the Stab trading budget undar § 96.340 (except a5 provided in paragraph (d) of this

i o par.

rccovery s t m gonomtocduring the

7t.a 25350 Federal RegisterlVol. 70, No. 91 /Thursday, May 12, 2005 I R u h s and Regulations

[2) The pormittingaulhority wIlI allncate C A R NUX allowances in aach CAE3 NOx unft under paragraph b)[Zl of Lis section In an nmnunt dotormined by multipIying the total amount of CAW NOxaIl~wancos dlomted undar pamgraph (b)[l) o € t h i stxtion by the ratio ortltn basdine heat Input ofsuch CAIRNOX unit to tho tntd a m a t of basalin8 heat input old1 sueh CAR NOx units In tba Stab and rounding to thn naarast whole allowance as ap ro rialo. 61 for each control period In 2009 nnd themafter, tha pOI7Ilkthl6 nuthmfLy wiU aIlorntnCAIR NOx ollawanms to CAIR NOx unitsin the Stata thnt cornmanmd operatioa nn or aRer January I, 2001 and do not yat haw a basnlino hcak input la5 detodned uadorpmgraph [til oftbIs sadion), in aeeardance with the following procedures:

(11 Tho p d t t i n g authnrity wllI ustablish P sepmte now unit sot-widc- h w c h control period. Each new unit set-addo will bn allocated CAlR NO% dlowancas E ual to 5 poreant for a

and 3 percent fora control podod in 2014 ond hereafter, oftEte amount or tons olN& ernksims in thn Stata Wdi budget U d Q r 5 90.140.

(z)%o CRIR dosipated ropressntaativa of such a CNR Nux unit may submit to the permitting authority a requost, in a f o m t spectffed by the pormitting authority, to be nllocuted c m Nux dowan cos, starting with the later of the control period in 2009 or tba h t conhI. poriod after tho contmI poriad in wb3cb tho W N U x unit mmmenms cornmarcid operation nnd unlll the first control period for which tItB unit is dloeptcd CUR NOX alIawances under parapph (h) offbis section. The C4lR NOx allowance allocation request must be submittad on orbeforn July I of the h t control period fur which the CAW NUX alIowanw ararequcstd and after tbo dah on which tho CAIRNOX unit ammences commareid opetation. (3) la a CAIR NOx aliowanco

allaesllon request undur paragmph [c](2) of this section, the CAIIl dwignated mpresentative may requost for a wntml period CAIRNOX allowances in an amouni not exceeding

emisdons during the c a h d a r p a r immadialdy bnfore such contra1 e r i o d

(41 fie pemittlng authority wi!~ revhw each CAlR NOx R I I O W C ~ allocution request undar paragraph Icl[z) of this section and will allocate CAE NDx allowances for eadh control Fsriod pursuant to such request as ollaws:

c~nml pori% In 2009 though 2013,

tho CAIR NO, unit's told tom trf NOx

(0 The permitting authority will accept an allowanm allomtion request o d y If tho requosl mwk, or is adjustod by the permitting authority as newswry to mcot, the re uiremnnts ofpangraphs (cI[l[zl and [a) olthis saction. (ii) On or anar July 1 af conk01

edod, thc nmitting authority will

dlolvmecs rnquesstod (as 8djuhted undar p&tPgnph [cl[¶l(il ofthis s e d m ) In all alIowance allocation requasts accepted undarpmgmph (cl(4)[11 ofthisscction for the control period.

(in1 If the nmount of c m NOx allowaacos In the new unit snt-asido fur tho contra1 period Is p a t a r than or equal tn Ihe sum under pmgmph [c](4(iI) of this section, thon the panniltlngauthnrity wiI1 aIIocate the amount oftXlR N& allowances re asled [as adjusted undar amgraph (&[i] ofthis section) to @act CAm NOA unit eweredby an dowanca allomtian l ~ q u i s t nmpted undnr parii ra h [c][4](i] of this sodon,

[id I f t h o amOunL orcm NQx ollowancas in tho now unit snt-&de for the conbol period is loss than he sum under paragraph [c)[4)[iI] OF this section, thon &a permitting authority wilt dlowle to each CAIRNOX unit wvored by an allowance allocation rquuest accoptod undar pangraph (c)[~][I) of this ~ c t i ~ n the amount oftho CAE NOx allowances requested (as adjusted under paragraph [clf4(tl of this scctionl.

ahwanees in the nuw unit set-asida Tor tha control pedod, divided by the sum da tormined undar paragraph ~c](4l[Ul of &Is s d m and rounded to the nearost whole allowmca as appmprlale,

(VI The psrmitting authority will nolib aaeh W d e s i p a t c d roprassntathe that submittad an allowance allomlion request of ths amaunt of CAlR NOx 8110wance~ (if any) a l l o d d for tho control potiod to tho CAIRNOX unit covered by tha ro uest.

?dJ E, aRcr cornplation dfhB mcedwwunder paragraph (134) of L s section for a mntrol oriod, any

unallocated CtllRNUx aiowames remain in the new unit set-arIde for h a control poriad, the permitting authority wiIl aUomte to each CAIRNOX unit that was aIlnEated CAlRNOx ahwancas underparagraph PJ] offhis seetion an amount of CAIR NOX aIIowances equal to the total amount of such remainhg unallocated M N O x allowances, multiplied by tha unit's atlocation undpr pmgtaph Ibl of WisectIon, divxded by 85 porcmk for a control period during 2009 through 20x4, and 97 parmnt far B confro1 rid during

L a m h a i e s u m oPihBC*RN&

m u ~ t i p ~ i ~ d by the mount OTCAIRNO~

2015 and thereafter, ~f P e amount of

tans of NOx omissions in the Stato hading bndgot under BS6.1W. nnd roundod to tho nearcst whole allowrtnw 8s appropriato. 595.193 Compllancecuppfcmeot p o d

b) h nddiuon to the CMR N& dIawnncw alIocated under 495.142, h a pamritting authority m y atloeato for the mnlml period in 2009 up ta &o fohving amount of CAR NOx aItowances to CAIIl NOX units in tho

b) For any CAlR NOx unit in the Stato that ach€evas NOx emission reductians ia 2007 and 2008 that am not necessary IO comply wlrh any Stata or fcdtrd emissions limitstion appUeable during such years, tho CAlR desipntad represantativo ofthe unit may requMt early reduction aedlts, and a1hm tion of CAIRNOX albmncw 6nm the ~ m p I i a n w supplement p a d under pamgtaph(a) ofthisseectfonfursuch oarly reduction crcdlls, fn acwrdnocn with tho fdlowing:

( I ] The owners and operators of sueh CAlRNOxunitshdl monitor nnd report tho NOx emSssioasmie and tho heal input offthe unit in acmrdaneo with subpart HH of this part In each control pedind Fnrwhkh early mdudion credit i s requested,

rnpresentative oPm& CATR NOx unil shall submit to the permitting authority by July 1, zoo9 a requast, fn a formst tipacified by the p d t t i n g authodty, far altocation ofan amount of CAIR NOx allowances h m the compliance supplomant pool not mceeding thhe sum of ths amaunts (in tons) ofthe unit's

[21 Tho CAE designaid

Federal RcgisterlVd. 70, No. 91 /Thursday, May 12, 20115 /Rules and RegulaUons 25351

NOx omission reductions In 2007 and 2008 that n m not necessary to comply with any Stale or iodura1 O m k s i P ~ ~ limitation appUdIo during such mts. dctormined in accordanca with sdpart HH ofthis @. IC) Fm any CMR NOx unit in fho

Siate whoso compliance with CAR NOx emissinns limitation far the cnntml pariod in zQo9 wouldcreatu an undue risk tp the rolhb1Iity oldcctridty supply during such maml pariad, tho CAIR designated roprasantatLvo nf t h e unit may roqumt the allomtion ofmR NOx PlIowaneos frum the compUmce supphcnt pooI under p m p p h [a] of this section, in ncmrdanw with tha

s€&submit ta tbe ponniuing auihority by July I, 2009 a raqumt, in a format spcdkd by tho permitting authority, fur aUonllon of an amount of CAR NOx allowaneas horn the camplinnm

minimum amount of CAN NOX dlawances accmary to ramova such unduo risk to the roliabilily of declrfcity

SUpphIlOnt PO01 not OXCCOding LhB

&ignited ra rasonkivo ofsuch CAE NOx unit shai dnmonstnte that, in tho ahsoace of allocnlfon to tho unit of the amount OF CAN NO, dowanccs requmtd, tha unit's mmplianeo with CAfRNUx emissions IirnItation fwihhe control periud in 2009 would m a l e an undue risk to thu reltobWy oleIadzidty supply during SUEh control period, This dmnonstrstlon musiindude a showing that itwouldnotbafoasiblo Fortho o w n m and opantors of tho unit to:

(il Obtain a suffichnt amount o€ eleckidty bow otbm alaclridty generation haeilltias, during &a instaUatlm oFwnhI tnchnalogy at he

for comptf wee with the CtuR NOx emis5bans limltatl on, ta prevent such undue risk or

[i# Obtain undar pasapphs &) and [dl of thk section, or olherwiso obtain, a d E c i e n t amounl ofCMRNOx allowances to prevant si& unduo risk.

Id] Tho pedttingaufhwity MlI revinw cnch EequBst under p m p p h &I or IC] oEthis section subdttodby July I, 21109 and will a h a t e CAIRN& dlowances far thn control poriad in 2M19 to CAR N& units in th Stah and cavoredby such request as foUOw5:

( I ] Upon mcoipt ofemhsuch~equeat, t h o permitting mthorig wirl maka any aeeassary adjustments to the Eequust to ensum tba t the amount of the CAlR NOx alIawanees requeslpd meals tho rcquimrnonts a f p m p p h b] or [c) of thts s e c t h a

(21 If rho Slate's cornp?ianw supplumen! pool under pa rag rap?^ Id of thk section has an amount of C A E NO% allowances not loss than tho total mount of CAIR NOx allawanees in ell such mqucsts {as ad'usfed under paragraph [dlM of dl is seetian), the permittingauthority will allocata to each CAIRNOX unit mvmad by such requests &a amaunt of CAIR NQx allowances rcqumcd [as adjuslcd under para mph [dl(ll of his section).

&f&a stale's campliaaw supplemunt puol under paragraph (a) o f this suctionhas a smalleramount of CAIR NOx alIowancos than the total amount 01 CAIR NOx allawsncos in all such requests [ns adjusted under pimgmph (d)[~] ofthis sdioa), t h o permiKing authority will dheal~ CAR NOx allowances i o oath ChIRNOx unit covorsd by such requosts according to h a foIloWmg formula and rounding to tho n W wholo d a w a c a as apprnpriato: Unit's elloealiDn = Unit'sad'usted

allomlfon x (Stala's complionco supplemmt p o d +Tola1 adjtlstnd allomlions Tor all units)

mor& "Unit's alloution" is the number of

CASK N& aIlowances alIooted to tho unit from the Statds complianw supplantent pod. Unil's adjusted allocatfon" Is the amount of CAIR NOx dSowances requustd h r h unit under parag~a h Ibl or (cl of this sectiou, as adjmdundor paragraph (d)(l) of thls section. "SfaWs complier supplemont pod'' I s the amount of ~ N O X allowances In &e State's complisnca supplement pool, 'Total adjusted alIocntions for a11 units" Is tho sum of t te amnunts aTalIoations requestad for dlvnifs under pampph &] m[c) of this sfittion, undmpamgmph [dl[ll otthis section.

permitting authority wiU detewIae, and submit t o thn Administrator. &a

adjusted

141 By Novambu 30,2009, th8

alloeatrons underpmpph-(d)[s) or (4) d&ls section,

151 BY January 1.2010, tho Ad&&&&iili remid tho allocatimsunderparagraph [d)[5) of this soctlon,

Subpart FF-CAIR NOx Allowance Tmcklng System

3%.150 [Ranred]

S96.?;rst Btahllshmmt of accounts. (a) Comptiunce umunts , Excapt as

provided in § 96.184(8], upon roeoipt of a eampIets certificate oFmpresentation under § 98.113, the AdministratPr will establish B mmplfance accnunt for &a CtUR NOx SOW for which the

eertiflde of ropmsmtation was submitted unlcss tho sourco already has a mom IIanca account

(b] ~flnerdaccmnk (11 Appliwliun jar encmlaccaunt.

Emera1 account for l h e purpose of h~lding and tmnsfming CAR NOx ahwancas. Anapplication for a penera1 account may dnsignate nnB and only DIIP CAR authorkmd account ropraontntiva and one and only o m nltornnte CAIR authodzad oxaunt rapmsantotive who ma xtonbehalfoftheCAIR au ior iad acaunlm rmntative. Tho

authorized account ropresmtalive i s selected shall includu a procodurn for nuhorizing !he dtsmate CAR authorized acewntrnprssentalivs t o ect in h u ortho CnlR authorked account ro resentativa fiil A cornplate ap urntion for a

general account shdbe submitled to Iha Admhktrntor and shnl1 include the following alemonts h a format prasmied by thn Administrator:

(A] Naino. mailing addrass, ommail sddrass [if any), tolephone numbor. and faesimih bansmission numbor !if any] of tho CNR authodmd aecauat ropres~ntativo and any alternate CA?R authoriznd account rapresentative; (SI O r g u h t i o n namn nnd type of

D n i d o n , if applicable: '& A 11st O F ~ I I parsons subjoet to a binding agreemant for &e CAW authorized accmnt mprmmtdva and any a l lmato CAlR authorized account KOprUSQUb!iVta to reptesont heir ownership intamst with rsspect ta the CAIR NUX allowances hold in t h w goneml account;

statamant by &e CAIR authorized account rnpresentativa and any altamam CATR authorized amount rapresenta!Ivvp: '[I #ai& that I was sdectad as the CAIR aulhorizod emunt mpmsentatrve or t h o altusnato CAW authorized accouni reprascntativo, as spplicabh by an agreement that Is binding on a11 parsuns who h a m o m h i p interast with rospmt l o CAIRNOX allownnces held in the goned ncewnt, I cortify that 1 haw all the necossmy authnrity to eanp aut my duties and rrsponsibilItles undar tho CARNOx Annual Tradlng Program on behalf of such parsans and that each such person s h d ba Fully bound by my represnatations, 11ctiom, inadions, or submissions and by any order or drrcision issuedb mnby tho Adminkbator or II courtmgaarding 8 a gan~ml mxounL"

The s;pdum orthe CAIR authorized account mprmontative and any fternata CAIR authorized 8EcoWt raprmntatlve and the dates signed

tdhny pers0a may apply 10 open a

agreomsnt by which &e altomats CAR

[D) Tho rOfl0dTlg C O f i f i U t i O I l

25352 Fuderal Register/VoL 70, Nn. 93/Thursday, May 12, 20JJ5lRules and Replations

[IUl Unlcsss othenvh required by the parmltting authodty n; tho Adminishator, documants olapornoat mlerrcd to in tho appliwLiun for a g o n d amount slid1 not b D submined to tho pormit tins authodty or tho Adminlstmlar. NeIther tho pamitting authority nor tha AdrnhIshtarshaIl bo under any oblfgation to mvIm or

documents. ifsubmittEd. evaluata Lesufficiancy of such

I2JAulJlunnzoUon of CAM ouihorized

(I] Upon redpt by the A h i n h a t a r OCCOUa R P W d Q t i V U .

of a amplola applhtion €or a gcncml amount under pamgnph fil(1l nf this seclion:

genaral, amunt Tor the porson or p ~ r s o ~ far whom tho application is submitted.

Dl The [=AIR authorizud account reprcsentatIvaand any alternatu CAIR au lhohd acwuntrepresentatiuo for tha c e n d account shall renrermt and,

(A) Thn hdmtnistraior will astabhh a

by hrs or her m maniatio&, ac Lions, Inactinns. or w\missious. legal! bind oacb goson who ltas nn o w n d i p interest wi f i respuct to CAIR NUX ahwmces hold in fha g a n d account in all mattars pertsiniag to the CAIR NOx Annual Trading Program, nntwithstandlng any egcmrnont betwtmn the CAR authorized account mpresentntivo ur my alternate W authorized amount mpresontative and Such ntSOn, Any Such 015OnShdl bR b o d by any ordm or &ston issued lo the CNRauthDrizedacmunt represeatetive or any eltornate CAIR authorized account tepresnntatlve by tha Administrator or a court xogarding the e n d account. (d ~ n y mprnsantatim, nctinn, inaction, or submissionby any altarnab CAXR authorized acarunt mpresentative shall be damod io be a rapresaotation, adon, inaction, or submbion by the Wauthorized amount representative,

[ii] Eo& submibsion cmcerning the general 8CCoufltSh8U be submitted, signed, and certrliedby the CAlR authnrizcd account representative or any alternate CAR authnrizad account mpxssnntnlive for &e persons Laving an awnarship Inbrost with respect to CAR NOx a l l o w ~ ~ e s b d d in tbe ganml amount. Each such submisssfon shalt indude the fullwing Eortification statement by tho CAlR authorized EeePllrlt mprcscntalivo orany dtmato CAR authorized account repmsedatiw ‘‘1 am authorized to make this submission on bahdfofthe psrsons h i n g an nwnsrship intarestwiih respect to h a CAIRN& allowanm hold in the gonad account. I d y under penalty or kw ihat 1 have parsonally mminad, and ~m ramIliar

witlt. !he sioternents and Information submitted In this dDcumant and all Its eltachmanis. Basnd on my Inquiry of those Individuals with primary responsibility for abhining t h o idormation. I certily tbat the dalomsnts and Jnfcrmationw to the b d ofmy knowlcdgo and hdief true, acumto, and complete. I am aware that there are s ignihnt p~nalti~ts far submitting fdsa stnloments and Infarmatian or omitting mqukod stahmunts and inTomalIon, including the pussibflity of fins or im rkonmant”

&i) The Adrninislrator will amapt or act on a submission concmlng &e ganaral aewltnt ody if tho submission has bccn mado, sTgnod, and codfled in amrdancs with pamgmph b][z][ii) of

uecount i~presanlu~iva und altcrnah C4lR oulhonied account representative; changes in pwhons wifh omcrship bferest.

(il The CAR nutborizzndaccnunt represtlntativa for a genoral, account mny bo changod at any h e upon redpt by tho Administrator of a suporseding compWtapplkatlon for a gonad accountunder amgraph (IY](I] olthis section. NotwiLanding any such change, all rn t~s~ttta!i~11s, actions, inactIolls, ndsubmisaionsby tho previous CAIR authnrized account TC rmsentative belore tha t h o and data d m the Administtaatorrecdvves the suparsadig a pliotion for a gmaral ecculmtshall~~ binding o n the new CAIR authorhad account reprosontathe and &a pemns with an ownership intamst with respect to the CAER h’Ox allowmco~ in h a p n d account.

[il) T ~ B a l t m a h #UR nuthorizod ecrrrllnt roprmsntatIvve fnr a general amaunt maybe clanged at any timo upon receipt by the Adminisbaalor of a suparseding complete applicati~a for a g n d account tmdarparagmph (bl(11 of this section. Nohvithslsnding any such chmge,dI ropresaatntions, acLions, inactions, and submissiam by tho praviousalbrnats CAlU authorized account mpreseniaaliv~ hdom h a Lima and data when the AdmMstralor receives tho supweding appiidun for a gonod Bccount s h d be binding on tEra now alternate CAE authorlzfid nccount ropresantakive and the persans with an otrrnarshfp intarest with respect t o the CAIRNOX allowances in the general account.

[iU](A) In the- avant a now pmnn

FBspoct to CAIRNOX d l o w a n c ~ in t h o general accdunt 15 not included in t h ~ list of such persm~s in the applIeation for a g e n d account, such new parson sh1l be deemed to bnsubject to and

this S d U L (3) Changing CAIR autharized

having OWnoShip h h 3 k With

bound by tho appliathn fora gmoral amaunt. Ihs ropresnntaiion, actions, inackions, and submissions of the CAIR authorizod emunt mpmsontativa and my aItarnato CAiRoulhorImd account rcpressntativo of the amaunt. and thn decisions and o r d m of thp Adminlstrator or n cou&as If tho new pmon WOIP included in much l i t , [B] Within 30 days Iollowing m y

chango in tho persons having an ownership interest with respect to CAIR NDx alluwancos in tho ganeml account, ineludfng tbn addihn oFpnFsons, t h ~ ChzR uuthorizod account represonmiva OF my altomate CAEauthorIzed account raprcsantativo shall submit n mvision t~ tho application fnr a gneml a~~ountamsnding tho list of persons havhg PU owaership interast with respwct to the C~LIR NOx allowances in tha gnneral aceaunt ta fncludu the changu

(41 ObJediOns concerning CAUl oufhoifzed acc~unt rcpmcnhtivr.

(il Onco a wmpleto applkation fora gonoral account undor paqraph [bl[I) ofthis saclion hes b a n submlrted and rewivcd. tho Adminisbator will rosy on tho apphation unIess and untit L superseding mmp1ata application for a ganoml account under paragraph filt’11 o l this seclion fsredvod by tho Adminisbator.

(iil Except as pruvided in parnpph @][3)[i] or (i i] of this snctton, no ab ectlon or ather cammunication su L mitted to tho Admlnistrntor concoming tho authorization, or any se monlatjon, action, inaction, or sulmiaion of f i e CAR authorizd aceonat ropresantatlve or any altomatrve CA?R authorizod m o u n t reprosantntive for a genad account shall sfht any reprosentation, action, inaction, or submissbn of Lho CiUR aulhprizadamunt mptasentatlva or any altornative CAR authorizad aecount mpressntativa or tho finality ofany dec i sh or ordot by the Administrator undar &e CAlR NOx Annual Tmding PrOgram,

(iii] The Administrator wiII not adjudieatsrtny privato legal disputn conccrniag h e authorizeUon or my reprsentatfon, acfion, fnaellon, or submission ofthe CAYR autlrntizcd account representatLvo many dtumalivve CASR aulhorimd accounl ropraantativo for ngeneral aaouat, hcluding pr-hate legal disputos concoming the pmcouds of CAIRNOX dlowmeo translers, (c) Aermunt idenlf i~tfon. Tho

AdmInisWcr %vi11 w i g 0 8 llnfque identilying nurnherto Each account ostabli5hhed undor pnnpph tal or @I of this scction.

F c d d RenbtcrlVol. 7t;J

70. Na. SIIThursdav. Mav 12. ZOCSIRuleS and Regulations 25353

sW.%2 RcspansbIlltlesof CAlR authorized aecauntrepmentatIu&

c m Nax ~ l h a ~ ~ c a Tracking 5 y s m accouat,allsubmIssbns to the Administrator perlahhg to the account, including, but not limited to, submksions concorning the deduction ortnnsfor ofCARNOx aihwancas in the amunt, s h d b8 mndn only by tho CAIR authhorizcd account roprosmfativo for h e amunt, 596.153 RecordaUnn of CAIR NO# attmneo aIlocatlons.

tal By Docember 1.2006, h e Adminislrator WIII record in fhn CAE EIOX 50urc0'scomp~~~acc account thn GAUINOX d l~wanca allaeated Tor a~ C A R NOX unfls at 8 s o u r c a , ~ ~ submitted by the pemilthg authority in arcordunce with gQB.l41(a), for tho control p~riods In 2[109,2010,2011, 2012.2013, and 2014.

Administrator will record in the CAIR NOx source's compfnnca amount tho CANNNOx allowanms allocated for tho CAiRNOx units at rho s o w e , as subrnItt8d by tbu permithg aUharity or os deteminsd by tho Administrator in accordance with §96.i41(b], for L o conkol pndad in 2015,

(c) In 2011 and each y m r UleraaRor, aRer the Adminfsbator has mudo a11 deduclions (ifany] from a CAE WDx som's complianm ncmunt undor 996.154, thn Administrator wilt record la &e CAIR NO, soure0'5 cornplimca amaunt tha CAR NOX dlawancas allocated for tho CAIRNOX units at the S a m , as submitted by the pennltting authority or datamined by tha Admtnistrator in accordance with 5gti.141b), for tho control oriod In the stdh year after tho yaar of i n contto~ patiad for which suchdedu~nns WQIB or could haw baon mndo.

Deeembw 1 of oath ymr theraafm, the Abidstxator will record in tho CAIR NUX swree's wmpIIanca accoud the CCYR NOX allowances dhwtod for the CAlIl NOx units at the source, 8s submitted by the psrmittingauthority or detamhed by the Administrator In E C C O ~ ~ ~ ~ C B with §S6,141[c], far tho conk01 sried in tho year of tho a p p l i ~ a h deadllns for recordation undw this paragraph.

(Q] Srnbr numbers fur ulIowied CAIR NUxdawonces. When recording tho d o c a h ofc.AmNOx allowmces for P CAIRNOX unit in a compliancrr amount, tho Adminishator will assign aacb CAR NOx nllowance E uniquo Identification number that will induds dgfk identifying the year oftho contra1

FoIlaWing tho pslablkhmant of a

(b) By Decsmbar 1,2009, tho

[a] By Dacambar 1,2009 and

period Tor which lhe CAR NOx allowanen i s allocated. 596.154 ComplIancewlfh CAIR NO, emlsslons IlmltatIon*

(a) AUo wzrn ce hnsjCer deadha The CAIRN& albwanccs me avathblp to he deductad for compliance with a sourco's CAIR NOx nmisslons Iimitatbn fora control period in a @on calendar yoar only if he CAlR N G allowaneas:

[I) W m allocated for the contra1 period in tho ear orn prioryeaar;

121 Am h e d m rho complfance account es of tI la allowance transfor deadhe for tha mntrol period or are w f o r r a d into tha wrnplianes account by n CAR NOx allowance transrer comctly submitted for recordation under 5 96.260 hy the allowance transfer deadline lor the contral =io& and

(31 Ars not necessary i r deducthis for oxcess smissims Tor a prior contrul psriod undcrpmgmph (dl af t h i s sactian,

011 L3eductIons for mmphee. Following &a recordation, in nrwrdancn with I96,lfil. of CAR NOX alhwance transfoa submittad for mmordaCIon ina SPUKCO'S complhncn account by th~alllownnm Lranslcr deadline for a conirol oriod, the Administrator wlU d e L d h m fk8 wmplianm account CAR NO% nllowanws avdlable under pamgmph [a) ofthis section in order 10 dotcrmine whattler tho source meets the W N O x emIsstons lidation for !ha control period, BS TolIows: (I) Unlil tba amount wf CAIR NOX

ellowanuls deductcd aauals the number ortons of total nitxogm-ddw emissions, determined in accordanea with subpart HH of &is p a from d 1 CAE N& unlts at the souPCB for tho control eriod:or

in paragmph &)[I) offbissc~tion, until no more CAZR NOx dowancps available under pmgmph {a) of thls section remain in the oomplianca ~earunt

#ox dlownnces byseriol nrrmbcr, The CAfII aulhorixd oemunt repmmtotiveJor a sauEt.e'scompliunce account may r e p s t thd s WifiC CAIR NOx

ia tbe mmpliance amount bo deductad for emissions or wess omissions for a control period ia accordanw with paragtaph Ib] ar la] of this section. Such mquest shall be submitted tu tlre Administratorby the dowanes tmnsfet deadline for fks control period and include, in a funnat proscrlbed by the Adminishator, &a idfintificallon of tho CAIRNOX S D ~ B and tErs apptopriato smhl numbers.

(2) a L r e m bsufEcisnt CAIRNOX dM%ll~CMb Cpmp18tB h deductions

(E] (1) Id8II tiFCd lion Of CA

ellawnnms, I k entifiad by serial numbcr,

I21 First-in, fimtsut. Tho Administntor will deducl CAR NOX a l l o w a n c ~ undar ammph fi) or [dl of his section from t L snum's wm lfanco acwunt. in the obs~nca af an ifentification or in tbn casp o ~ n partial idantilimtion d C A I R NOx dlowaneosby serid number undor pmgmpb (cl[l) OF lhii section. on a firsbin, fiat-out FIFO) accounting b s i s in the fnllorving ardor:

[i) h y N u x 8 1 l O W ~ ~ ht WETU alIocated to tho unik at the SOUTCO. in tho ardorofrewrdatiw; and then

($1) Any CAR NOx dlawances that w m dloeated to any unit md transferred and rocorded In tho c~rnplLnce account pursumt to subpart GG ofthis part, In tho order of rewrdation.

(d] Dodudlons for cmisions. (1) ARurmaking the doduetions for

complianw under pangraph €Id or this section for amntrol pariod in 3 tsalondar year in which tho CAJR NOxsourm bus oxcess smfssions. Iha Administrator will deduct h r n tlie sourn's mmpUanco acwunt an amaunt OFCAIRNOX alhwanccs, nllaeaied fur thn wntml perind in tha immndfalely lollnwing

aumbor OF tons of I ~ B sourca's axenss omissions.

under paragraph [d)M of thk seethn shall not affect tho liability d ihe owners and operators of thn CAIIi NOx soma or the CAIRNOX units at tho souTce for any fino, pmalty, or asement , or thuk obligation to comply with any 0 t h remedy, Tor the m u o violations, as o d d under fhe Cloan Air Act or o p p b b h Stat0 law.

Is] Rccardarion ufdeduclions. Tho Adminislmtorwili record in tho ap ropriato CompIiaaw account all defiuEtrtins liom such an accounl undar paragraph or (dl ofibhis section. [i) AdmizVsimtor'sactfon on

subm ;5sions. (11 Tho Admhistmtor may mvim and

mnduct indepondont nudits concerning any submissron undor &a CAlX NOX Annunl Trading b p m nnd makn appropriate adfustmcnts o f t h information in tho submissions,

(2) Tbn Adminishator may d~ducl CCUR Nox dIomncw h m or tmnsfcr CADI NOx allowmces to a source's wmplianco a m u n t based on rho information in ihn submissions, as adjusted under paragraph [0[11 oFh€s section.

596.f55 BanWng. [a] CAR NOx nllowancw may bo

banked lor Future US8 or tmasler in a camplianca amount or n geneml

CdOndBry8X, Of@ 10 3 h l w tho

(2) Any alInwancc deduction mqukcd

25354 Federal RegisterlVol. 70, No. WThursday, May 12, 20051Rdcs and Regulations I

m o u n t in accordanw with paragraph @I of this scdon.

Ib) Any CAIR NOx alInwaneo that i s held In a wmplianea account m a general accnunt Wrll remarn in sueh acmunt unless and unUl tha CAIRNOX allawmce i s ddudud or transferred under 59Fi.154, $196.156, orsubparl GG

596.156 Accaurrlcmr.

SOIQ d i e t i o n and on hk or hsr own mollan, mrroct any omor in any CAD? NOx AlSowanwTmd5ngSystom account. Whin 10 businass days of mnklng such correction, tho PdmiaLhtor will notify L ~ P CAiR auuthorizcd eccount represenfathe tor tba nccowt. §9&157 Cbslng d general accounts.

re rosmtalivu ofaganonl account may su%mit io the AdmMstmator a xaquesl to doso the acwunt, which shall Sncluda a comclly submhtod albwoncs tmnsfor under 5 06.200 for any CAIR NOx allowmce~ in tLs amunt to one or more othor CAR NOx Allmvanw TraekIng S$deI?l aCcOIIIIts.

(b] Ea gen~ral acmunt has no a b w m m transfers In or aut of he a m u d for a12-month poriad or longnr and does aot confah any CAmNOx dlowsnw, the Adminimtor may notify the CAIR authorized account roprarmrntivo h t h e account that the account willhe closnd following 20 business days aRor thennticeis sent. T&n account will be closed afttorthe 20- day polind unlms. before the snd of !he 2Gday perid. tho Admtnismiar mwives a eorroctly submittad traasferof C m NOx alIatvanm intu the acmunt undor 5 86,IGO or astatmmt subdtted by the CMR auhrized amnunt represonfatha dmonstrating ta the satisfaction aFtha Administrator p o d cause ns to why the account shouldnot ba clwed.

Subpart G W A I R NOx Allowance Tansfers §96.160 Submisston a€ CAlR NOX allowance tmslera, A CAIR au!horized account

sepresentativn seeking mcotdation 01 B IXIR NOX allowance m f s r shalt submit t h o transfar tu tho Admlnkttator. Tu bo consf d m d WrrSdy mbdttnd, the CAlR NOx allnwmm tmtisfer Ehall include the following demmts, ina brma t speciriad by Iho Admiaktntor:

(8lThe account numbers for both tho itansforor and transform accounts;

Ibl The sedd number of each CAIK NUX allowance thatk in the tmnsfmr account and is to be transfenad; and

of this part.

Tho AdmInIslmIwmay, at his orher

[n] ThP C A E authorized 8CCOUIlt

IC] Tho namr? and 5iplure- of the CAR authorized account mpresnnlntive of &e mnsferoraccoun~ and the data signed. §SWSi EPAreeotdatlon.

pmvidad in paragraph fil of this s~ctirm) ofrecoking a CUR NOx dlorvanca transrer, tho AdmTaIstrPIor will record a CADI NOX allnwanca mmlcr by mnving each CAW NOX allowance fram the transforor account to the kinsfarm a m u n t as specified by the reqimt, pmvidad that:

(11 The translor is corseciry submitted undcr5g6.100; and

(21 The transferor account indud= each C m NOx aAowanea ibntififidty serial number in the transfer.

@] A C A R NOx dlawance transfw that is submittad formcordation alter b aIlowanc0 transfer duadiae Tor a contml pwiod and that includos any CAIR NOX allowances allomated for any wntrol pariod bPfOra5llch allowanen -faor doadline wili not ba rcwrded untii der tho Administrotor wmplotes tha deducffans undar 198.154 for tlta contra1 poriod Immediately bdorasuch allowanw tmnsfor daadlinct.

(e] 'GYharoa CAIR NO% altowance transfer submitted for recordalh~ fails tomeet tho raquimmonts of paragraph (a) of this scdim, t h o Administrator will not rewrd such bunsfer. 996.362 Nollfbtlon.

[a) Notifimlfon olrecadution. Within 5 husinws days ofrocordalion ora CAIR NOxdlownaea rransfcriulder 396;161, tho Adminiskator will nPtIfy the C m authorhad accmnt rapwmtatives of bath the tnnsfomr and tmnrfme accounts.

[bl Nutlficdhn oJnon-recordptiun. Within 10 businass days of romiptof B CAIRNOX allnwmce transfer that fails to mwat the requiremunls of §QS.lSl[e], th8 AdmlnIstrator will naLiFy tha ChlR authorized amunt rpr~sentatives of bath amunts ~ubjoct to tho banshr of:

(11 A decision not to record tho Wansfet, and

(21 The ma9011s for such m u - mmrdation.

IclNothing in thI5 seclinn shall predudc the submission of a CAIRNOX dowance transfer far recordation foIIowing noti f idon of non- roc o rd a ti o a,

Subpart HH-Monitoring and Reporllng §96.%70 General requlments- Tho owners and opumtors, and to tho

axten t applimbla, the CAE designaled mptasantative, of a CAR NOx unit,

(8) Within 5 bushes days (WXCQjltaS

shall comply with tha monitoring, remrdkaepiq, and reporling requiremonts as provided In this subpart and In subpart H of part 75 of flits chapter. ForpurpwsoTeom lying with s u ~ requirements, tha tofinitions in gSG.102 and in g72.2 ofthls chaptcr &a11 apply, and tho terms "affaded unit,'' "des~gnatdreprcs~ntativo," and "con tinuaus ~misslon mmitorlng system" (or "CEMS'J in pntl75 of &is chnptatshd bB deemed i o mhr to the toms "CAIRN& unit," "CAIR dosignatcd mprasentative," and "~ontinuous emission monitoring

stem" [or "CEMS'I respectivdy, as &nod in 4 9G.fD2. Tho owner or npnratnr ora unit that is nat a CAR NOX unit but that fsmonitomd undcr §7~.7~~][2)[ iS) OF this chaptor shall wmpl with tbu sama m o d toring, reco~&opiag, and mporling repiramoak a5 a CAIRNOX uak

Io] Requircmen bjor insioh lion, ccrtijicuiion, ond data aceounthg. Tha ownerorapomtor of as& C N R N O x unit shall:

[I) hidl all monitoring systems required undar this subpart for mnnitadng NOx mws srnissfons and individual unitbeat input (including all systems requhd to mnnitor NOX emission mto, NOS conconbtfon. stack gasmoisture mntant.staekgasflow rate. C& or 0 2 concenmiion, and h a 1 flaw rata, 8% applieabla. Inaccordanm wilh 5575.72 and 75.72 ofthis Anptd:

(2) successrully complete d l cerWxotion tak uhed undnr 396.173 andmeaL% other raquirsments oEthfs subpart and pari 75 nf this dmpiur appifcabla to t h o moniloring systems u n d q a m p y h $a)(l) o€&Is sactIon; and

tJlo data h m thnmomtoringsystems underpmgraph (a][r) ofthb section,

or opcrator shall moat tho monitoring system cartIilcation nnd othm requitmenk a€ pmgra hs ( a ) ( ~ ] and

following datisThe omor or opnralur shall record, report, and qualitpassure th data h m thnmonitoring sy5tmns under paragraph [a)(ll ofthis scctfon on and aRer he Fnllowing dates. (I] For tho owner nr operator of a

CAIRNOX unit that cpmmencos commortial opomlion boforu July 1.

121 Forfho owner or operator ofa CAIR NOx unit that commancas commercial opmliononoraRarJuIy 1, zuw, by tha rotor of tho fnllowhg dates:

(9 January I, 2no6; or (Ii) 90 unit operating days or 180

dendm dgts, w h i e h o v a r ~ ~ kt.

I31 R e a d , roporl, Fed quality-assum

(b) Camplianee deadlm~s. The owner

(21 of this secuon on nr 1 afaro the

Z O D ~ , ~ ~ J ~ U E U ~ I, zaoa,

F d c d Register/Vol, 70, No. SIIThursday, May 12, 2Ua5lRules and Rcgulotlonns 25355

aRer !ha data on whlch t k ~ unit commonccs rnmmercial opention

(3) Foe tho ownar or o cntor Of 8 CNR NO^ unit f o r w h d Eonstnrctlnn ola naw slack or fluo or instalIation 01

cnmploIcd aftar thn applimbh deadline underpwgtapb b1[1), (21, (4, or (51 of thissaction, by 80 umt npmting days or ID0 c a h ~ d a r days, whichnvar occurs first, aRar tho date on wbJ& omissioas first d t to &e atmosphora though the now slack or flue or add-un HOx emissions couhmls.

(41 Notwithstanding t h o daias in paragnpbs IbM) and (21 of this- secliun, for uls owner or operator ofa unit for whf& a CAKR 0 t - p d t nppUcatloa

ClLlRopt-hpermit isoot yet issundor dEniedundcr subpztl II oPthrS art, by the data spcciftod in 596.l8elbP.

(5) Nolwithstandiig t h ~ dates in pangmphs fblI11, (21, and (4) afthis section and solely fur pu~oses of 5 se,~o~[c)[z1, forthe owner or operator of a CAZR NDx opt-in unit under subpart n oI thfs part, by the date on which tho CAIR NOX apbh unit enters the CAlR NOx Annuel Trading Program

odd-on NOx missim conk& fs

issubmltted an s nat -In withdrawnand a

a p p k b l a cornpfiaam data sat forth in pmgraph fi] of thfs 5ectIon for any monitoring systurn under paragrnph [a](l) of this action shall, for oach such monitoring systam, dslermIno, r w r d , and repoi-t maximum pntential [or, as appmpriato, minimum po!eathl] values forNOx coneenbation, NOx omission rate, stakgas flow mto, stpckgas mobture content, f ~ d flaw mte, and any other paramebs required to delermhne NOx mws emissions mind h a t Input In acmrdaneo with §7531b)[Z) or (cI(3) of this cbapler, ssclinn 2,4 of sppendixI1 to part 75 of thIs &aptor, or secetIon 2 5 ofapp8ndixE to part 75 ofthis dhaptnr, nsn limbla

# h e ownor or aporatar of a clil~ NOx unit that doss nct moet tho applicable compliaaco date set forth in paragraph bKl) of this section €or any monitoring systam mdnr parap b (aI(1) ofthis section shdl, for e a 2 such munibring system, d e k d n e , record, andreportsllbstitub datausing &e applicable mMng data pmcadurcc in subpart D or subpart H of, or appendix D DP appondix E lo, part 75 o€ this chapior. In lieu of the maximum potentla1 [or, as appropriate, minimum potential) values, for a paramator if!h~ ownor orapmtor dnmonstmta that them is continuity batweon the data stmams for that parameter bsfm and

2 5356 Federal RegisterlVol. 70, No. WThursday, Mny 12, 2005fRules and RegulaLions

monitoring systam under §96.170(a][l) that may sipificantly affect t h o abiIity of &o systum to sccumtdy measurn or record NOX mass emisaims or heat input ratn or to meet he quality- assurance nnd quality-cnntrol roquiramenk D f Q 75.21 of tbis chaptor or appoadix B to part 75 of this ehaptnr, t h o omcr or opemtor shalt recerlify thn monitoring~ystam in aeeordance wlth §75.20&) af this Ehaptcr. Furthermom, whenuver thn awnar ar opomtor makes II mplacomont, modfficatfnn. or change to the flus g s hmdliig system or Lhn unit’s o p n d o n that may significantly chnngo tha stack I~DW or concenttation pmlils, tho amur or oporatorshall mcottify ea& continuous emission mouitorhg systom whasB accuracy i s ptmtidy allected by the change, in accordance with §75.2O(b) afthir ehaptcr. Examplas debangas to n conlinuous emission manitoringsyslem thnt roquiro recertification indude repIacement of the nmIyzer, wrnptoie mplucamsnt of an axisthg continunus emIssIon monitoring systm. or changu in location or ndentation OF the sampling probe orsIta Any fual ff owmeter system, and any axcapted NOx mwnltarhgdyslom undw nppundix E to part 75 oft& chapter. undor §96.170[8)[1) amsubject to the recertification requirements in §7550(g][6) of thk chapter.

W f l m t i o n and receMficatlon. Paragraphs [d](3](i) thruugh (ivl of &is sedon apply to both initial certlGdon and raeertiIimtim aFa cantinuow monitoring system under §ss.170[4[1). For rowrlifications, rnplace the wurds “wrtif~ca tion” and “hi tial certificati ma’’ wi!h thn word “recettIfimtionl’, m Iaco tho w a d ‘+m-tifiep with the w o d “romttified.” and folfow the procedurss in 55 75SOtbj[S) and @[7) of this ebapter in lieu of tha pmwdures in paragraph (d)[3)(vl of this sodon.

(i) NoLifimlion of &fimth?.The CAlR deslgaalad reprasentativo B a l l submit to the p d t t i n g authority, th appro dale EPA RflgIond Offico, and the A&uhIstraforwrILten n o k o oftha dates ofcartIfieatIbn tmting, In accordance wifh §S6.173.

[ii) C&fcution appficoliun. The CAIR das*gnnbd repressntativo shall submit to the permitting authority a cdfieation application for each mdtoringsystm. A mmplutu certIfrcation applicati~nshul1 Include the lnformationsadied in § 75.G3 o€

(31 Apprrrvd pmccssJorlnflfd

rnonitoringsystam may bo used under tha CAR Nlox Annual Trading Program for n period not to exceed 120 days aRnr receipt by the permlllIng authority of thn compldtr cortifieation npplimtion for the monitoring systsrn under p m p p h (dll3)Iiil of Lhi saction. Data measured and recordad by h o provisionally certified monitoring sysicrn, in acmrdanm with &a r8 uIremonls ofpart 75 of this chapter, u?qI bo comidemd valid pnlityosswd data (rebaadue to &a date and time af pwvisiond Codfialion], providad that the permitting authorig doos m t invnlidnts Lho provisiond certification by issuing a naticc of disapproval within 120 days of ibe dale af recoSpt of the cornplsh CcrtificaHon appliwtion by tha pormlttlng aulhorit

process. The pormitting nuthonty will issue a writton noUca ofapproval or disappmvai of the certification application to tho nwme or oporntar within 120 days afromiptof tho campleta ccrtiFieation appltcatioa under parapaph [d)[a)[ii) of this section. h the avant tho permitting nuthdty does not issue such a noff ee wilhin such IZO-day pmiad, nach monitoring sys~em h t meob t h ~ applirabh perfomanco requirements of part 75 of this chapter and is ineludod in the certlficatron applimiion will be domed certifiad for USP under the CAR NO% Annual Trading Progmm,

codfieatIon application is complete and shaws that each monitoriag systom meek &a applicabh perforrnanco requirements of part 75 of this chaptor, than the prrnitting authority will %sue B writton notice of apprnval of the eertI5catIon aaalfcatian withfn 120

(ivl ccrllfculiun app%mtionpppmwl

[AI Appmvd n0tic.s lftba

fhe iertificaiion application is not comphte, then tbapemiUing authority will issllo a vtritten nouce of incompleieness that sots a reasonable dato by which the CAR designalcd re resontativa must submit the a d h o n a l informalion required to mmplte tlttr teriification applicaUcn, If tho CAR dcsigmtod represnnlathn doas not do ply with tha notim of incompleteness by &e specified date, then tho permitting authortty may issuu a natiee of disapproval under paragmph (d)(3)[iv](a ofthis seetian. The 120day taview psziod shaH not bogin be€ore racatpt of a cornplele csrtificalion

nppltuthn Is Incomplotn and tha roquirement for disapproval undor pangraph Idl~3][ivl[Bl ofthis section i s met. then the parmitting authority will issua a wrilten notien of disappmval of the certification spplicalion. Upon issuanco of such notlm of disapproval. tho provisional ccrtificatIon is invalidated by thn pannittingtiutharity and the data measured and racord~d by each unwrtIiied monitoring system shall not bo considered valid quality- nssurad data beginning with tbo dnto and houruf provisional cartIEicntion (as defined undor§75.20(nl(3) of Us chapter), Thc ownar or opomtor shall follow tho procedures for loss of certiRcalIon in pamgraph [d)[3][v) of th3s saellon lor mch monitoring systom fhat is disapproved for initial certilimtIon.

permitting authortty or, for B CAIRNOX opt-in unit or P unit for which a CAR apt-in pemlt application is submittad andnotwithdrawnmda CAIRO t-ln permit isnot et issuod or doniegundor subpart II of& part, the Admlnistrztor m y Issua a notice of disapproval o f h certification status of a monitor in accordance whh 596.172@). (VI Procedures jar loss ofmiificaiion.

Ifthe permitling authority or the Adminlsmtor issues a n o l h of dlsa prom1 of a EerlfficatIon a &tion under paragraph

disapproval of cortihation sbetus undor patagmph [d)[3)[iv)D) oFtbIs section, Lben:

[A) Tbn owner or opnratot shall substitute the following valttw, for meh dhpproved modtoting system, for oach hour of unit oporatiion during fha period of invalid dntbspecifid ilndor 5 75SO[al[~lfiii), 5 75S0&1(71, or f 75ml(e] ofthis chapter and contlnujns until &a aarrlimhlo dote and hour

[n] Audit de.erfilicntlun. The

[d;[3l~vl[c) ofth is mctIon ora nolrco OF

ii. e., NO= AIuentI sysi in I tha maximum polentla? NOx mission tate, as doEned Fn 5 72.2 of this chapter.

(21 For a &sapproved NOx pollutant waceatxation monitor and disappmved flow monitor. respactivoly, &a maximum potential eoncsntmtion or NOx and thn maximum potonUal flow rale. us dofinad in sections 2.1.21 and 2.2.4.1 of appandk A to part 75 ofthis chapter.

I31Far a disappmvnd moisture monitorhg system and dknpproved a u e n t gas moniloring system, respectively, the minimum otanlIal

maximum polentiaf Cot coucontmtion moisture pcmntaga and ai i nr the

Federal Register/VoL

concontralion (as applicable]. as dcrmed in scctions 2.1.5.2.19.1, and 21.3.2 af appondfx A to part 75 ofthIs chapter.

141 For a disopprovod fuel flowmeter syslem, the maximum potantid fud flowmtB, as dofined In section 2,4.2.1 ofappondix 0 to part 75 of this dhapter.

15)For P disappmvnd mcoptod NOX mnnituring system uadwappondk E ta p a 75 of this cheptor. tho fud-specific maximum potentid NOx mission mto, us defincd in § 72.2 ofthii chaptw.

(BJTho CAR dm-gnatd reprPMnlativo shd! submit a notifimlIon oleodfication retost datos nnd a npw cmi6cafion uppIidion in accordanmwlth pamgtaphs [d)13][i) end [ii] ofthk scctiun. (C) T%P ownor or opsrator shall rapeat

all mitilintion tcsh or other requirments that W I ~ M faibd by ihe monitorhgqslem, ns indiated in lho permittha authorily's or the Adminishalor's notfm of disapproval, no later than 30 udt opentiug days aftor the data of Ir;suanco of thnnntleo

mccciifiwlion pmceedrmrnfor u d s usi din la wrnuss emission aucepbd r n c 2 o ~ a u under p 75.39 oIthis c h Ler.Thpnrvneroroperatorofatlnit q u * L d t o us0 thdowmass d s s h 5 {LME] sxcoptod methodohgy under 575.19 of this cbaptar &all meat the applimble mertification and recertificadm re utrsmonls in If75.1~1aI~Z) a n i 7S.ZO[h) of tbis chapter. zf tho m a r or operalor af such n unit elects to emti@ B €ud ff owmatar systorn for heat input detarminatfon, &a nwnm or oparalor shall also meet ~€IB ccaifidon and recartiGwtian

chaplor,

prnadurusfar alfwnotiva monitoring qdm. Tho CAR designated raprasnatative afach unit Torwbieh the owner or npmtor inbnds to use an altemath monitoring system appmvod by iha Adminisbator md, ifappliwbls, the permitting authodly under subpart E ofpart 75 ofthis cbnptershall corn ly with the sppUmblrtnotlliatim ani application procedurns of 5 7s.zoIo of this &Dp;w. § 96-1X DUt o! contmt perlods.

(a) Whmavar any mwitorhg system falls to meetfha quaUty-mmco and q u d i 9 ~ ~ l t m r ~ t h m 0 n t s or deta Vdid8tiOn rn uimments afpart 75 of W chaptar, $ah shall be substituutod using tho applic~blo missing dnta p m e o d w in subpart D or subpart H of, or appeadIx D or appmdii E to. part 75 or !his chapter.

ordhppmva!. (0) I Z m d cwtiycalion and

y u b 8 n t s in s 75,ZOkl or ~hir

[Q Ctukiftcutiodnccrtifidian

25358 Fedcral RogisterlVoL 70, No, 9l/Thursday, May 12, 2005/Ruhs and Regulations

eorroctly and fully manftomd Tila certification shaIl state thal:

[I) Tim monitoring data submitted weru rpeordod in acwrdanw with the ap t l d l e requirements afthis subpart an$ parl75 ofthis chapter, including fhn qualily assumnee prowduns and specifications; and

[2) For a unit with addmon NOx emission wntrols and For all hours whom NDx datn am substItutud In aceordanch with 0 75.34Ia)(1) of this chapter, t h ~ add*on omission mnmnIs w m opatatlng within tho mug0 of pammmrs Iisted in tho quality nssuraoceiquality control program under appendix B to part 75 Qf this chaptcrand ihha substitutB data valurw do act s y s t o m a t i ~ ~ l y underestimate NOX emissions, 596.175 Petittons.

[e) Excapt as providedin pnmgmph

designahd repnrsontativa afa CAIR NOx unit that is subrect to nn Acid Rain omisrfoa5 IimmItotIon m y submit a petition undm §75.66 of &Is chnpter to tho AdnddslrPlor requesting approva1 to apply an altmative to any raquimmnt of tbis subpart. Appl idon ofm iiltematIv~ lo R U ~ requhmmt a€ thI5subpart is in accordanen with this subpart only to the axtnnt that the p t i t h Is qprovnd In writing by Lho Administrator, In wnsuhathn with the parmittlng autlioriIy.

repmmtativs of a WE NOx unit that is not cubjret tu an Add Rain smhssfoas Ilmitntion m y submft B petition undor 575.66 ofthis thapter to thepormitting authority and the Adndnktrator requestrug apprnvaI to apply an dternntive to nny ra4uIremant oft& subpart. lippHmation of andhrnativa to any requhement of thts subpart i s ia accordance with this subpart only to thc aMunt &at tho palition Is approwd in writing by both the permitting authority and Ihe AdmhWmtor.

mpresontatlva D ~ ~ C A ~ R N O ~ unit Gat is subject i o en Add Rain mlssims lhitatfon may submit D. pstirianunder 5 76.66 ofthis chaptnr to tho permitting sutbnrity and ~IIS Adrninlstmtnr mquPstIng approval to apply an ahamative IO a requlremmiconceming any ed&Umal continuuus amisston monitoring system mquhrtd undor § 75.72 af this chapter. Applimtian of an dtatemativo to any such requimment is in accordace with thhmbpart only to the extent that h a paiition is appmwd inwriting by both tho permitting authority and the Administmtor.

IbI(2) ofthiis sedan, tha a r i l

&][I) The CAIR dusignated

(21 The CAIR dasignatsd

595.t76 AddEtiortal requltements to pmutde heat Input data.

Thn owner or operalor ora W NOx unit &at monitors and repork NOX m a s amisslnns using a NOx urncentration system and a flow systom shall a h monitor and report heat input rata at thaunit lnvd using tho procedures sat forh in p a 75 drhi chapter.

Subparkll-CAIR NQx Opt-In Unlts 5gE.IaO AppllcablAty.

A CAIRNOX apt-In unit must bo a unit that:

(01 IS k i t e d in Lka Stale; Ibl Is not a CAIR NOx unrt uadcr

5 96.104 and is not covcred by a ralirod u d ~ axamption under §96.10s tbat is in affect;

[c) Is not covared by B mlIrnd unit a x e m a t h under 5728 oEthis Ehuatnr

have a UPV opiating p d t or other i a d e d y snforceabln permit; and

(e] Van& all of its omissions 10 a slack and m a mcot the monItOrin6, recordkeeping, and reporting ~ U ~ S ~ ~ B Q I S oisubpmt HH ofthis part 596.lW Geneml.

Ial Exapt OS othonvise provided in §5sGmlol through ~ 6 . 1 0 4 1 4 8 ~ . 1 0 S lhrough 88;1I18, and subpark BB and CC and subparis FF through HH OF thk part, B C M R NOx opt-in unit shall ha mated as H CAIK NOX unit for purposes of applying such saetfans and subparts of

application is subrnittedandnot * withdrswn and a M opt-in p d t i s l i ~ t yet issued ar denied undar this subpart, such unit &dl bs treatad as a CAlRNOx urJt bofaro issuartca of a W opt-in permit forsuchunit. §96,1BZ CAIR designated reptesentaiivva

Any CAIRNOX opt-huait, andany unit for which a CAlR opt-in pennit spplicalinn is submitted and not withdrawn and a C N R apt-in pennit is not yet issuad or doded under this subpart, lnmted altfie same s o w e 09 m a or more CAIR NUX units shall have tho Same CAIR d=fgrtated raprasentntlve and aIbmale W dudgnatmi representative as such CAR NDx units. §96,183 Apprylnq for CAlR opbhpwmlt.

(d App@ngJoriMd CAIR 0pl-h permit- T h e CAIR dasipted Fepresentativo of a unit meeting ths requSremenlsforaCAIRE;lOx opt-in

unit in f 96.180 may apply For an Initla1 C A R opt-in permit at any t h n , axapt as provided under §g6.186[fl and (6), and, in ordcr to app?y. muslsuhmit the lolhwiag:

ap l i d o n under L 98.122:

specified by tbe pmltting aulhntity,

(11 A complets CNRpcmit

6, A ccrlifim~on, in a format

that the unit:

5 96.104 and is not e a v m d by 8 ratlrod Iil P not a GATR NOx unit under

Federal RegistcrfVol. 70, No, 9l/Thursday, Mag 12, 2005~Ruks and Regulrtb'ons 25359 0

opt-in p m i t undor§96.183 is submitted In accordance with the

Tkupmitting authohy and tho" A Admlnkhtorwiil detmino, on an interim basis, the sufidonejt oftho modtorin plan acmmpanying the

poni t undor g96.183. Ammiloring plan issufficient, for purposes of intnrlm mviow, if thn plan appears to canlain information domonstraling &at tho NOx emissions rata and beat input of tho unit end aIl other applicable paramotem am monitored and raportad in accordance with subpart HH ofthis part. A detorminalion dsufficiency shall nnt be construad as aceeptanee or ap roval oftha monitoring pIan, i$ Moniturfnbtundmpodn [I)[il1~ tho p w i t f h g nutkorIty and 80 AcImlntstrator dalemine that the monitodng plan is sullicient undor p-ph (a) of thiismtion, the nimm or operator shall monitor and roport the NOx omissions rate and the hmt input of t h ~ unlt and all othor applienblc patdmctors, In s c c o r d a ~ ~ ~ e with subpart HH or this part, starting on thn deta of cwtiliralion ofthe apprnprlale monitoring systems undor subpart HH of part and continubs until a (=AIR opt-in p m I t 1 5 doniad under S Q ~ ~ t t [ f l or, if8 CAIR opt-in permit is issued, tho date and timn whon the unit is withdrawn from tho CAIR NOx Annual Tradfnrr Promam In accordanca with

inltid app 4 Icatlon for a CAlR opt-in

the unit ent'ers !ha CAIRNOX Aanunl Trading Program under 596.184QI. during which pariod monitoring systm arailabSlIty must no1 be less than 90 percent under sub art EM ofthir; pact and the unit must i o in full cornplianca wilh any applicablo Sbte ar Federal omissions ar omhionsdatad re uirements. ?21 TO tha went ~ h n NO^ emissions

rata and the heat Input oftha unit am monitored and mportad In ecc~rdmm wilh subpart HH of &Is part for ans or mom control periods, inaddition to the wnml period under p m p p h @)[l)[ii] olihk section, during wbrcli control porIods monitoring system availability is not less than 90 percent undar subpart HH of this part and the unit is In full corn limen with any epplicable StatD o r d m ~ emissions or emissions- dated roquiroments and which control parIods bQin not mor0 than 3 years bofom tho unit entors tho CAIRNOX Annual Tadmg Progrnm undw 596.184k1, such Xormation shall be

usad os providad In paragraphs [e) and (d) of f i i s section.

(cl Basdin e hen t in ut. Tho uni 1's baseline heat rnte shai equak 0) If the unil's NOx emissions rate

and heat input am monitored and reported for only one control h d , in omrdanm w i L pamgraph &J of Ws section, tho unit's to ld heat input (in mrnBiu1 for tho ConhmI p@u& or

[2] If the unit's NO, omissions rata and heat input ate monitored and reported Tor more than ono c o n h l period, in accordance with paragraphs [Ir1[11 and [21 of this sactian, the avarsgn a€ lhe amounts ofthe unit's total hnat input [in mmBW for !he control p d o d undac paragmph (b)[l)(ii] of this section and for the control podods under para pb ()l[2) of this swtion.

[df%hine NOX cmfssfon rote. The unit's bassoline NOx omission rate shall equal: [I] Ktho unit'sh'Ox emissionstale

and heat input are munitorad and rworted Tor onIy ono control period, in accordanen wIth pamgraph [bIIzl o€this smff on, thn unit's NOx omissions rato (in IblmmBtu) for tha control period;

I21 If the unit's NOx embsions nh and heat input are monitomd and reported formore than on8 conlrol period, in accordance with paragraphs [bl[1) and (2) of this s~ction, and tho unit does not have add-on NOX emission controls during any such emtrol periods, the average oftha amounls of the unit's NOx emissions =lo [in IblmBtul for I ~ R control padod undcr pangraph @](l]M[ii) of his seaion and the control pedods undorparagraph Ib)[Z) of this section: or (3) Ifthe unWsN0x emissions rate

and heat input ara monitored and reported for more than one urntrol period, in accordance with paragraphs [b][Il and [ Z ) ofthis seEfion, and the unit has ndd-on NOx srnission controls during my such conk01 pcriods, the avarage of 8 e amaunb afthe unit's NQx emissions rale [in IblmmBtul for such eantml period during wh?ch tho unit has add-on NOx omission controls.

(e) Issuance @AIR opt-in permil, ARer calculating the bas din^ h a t input and the baseline NOx omIssIons ratn for tha unit under paragmphs [cl and (d) a€ thissnction and If tha pormilting autbority delermiaas t h a t ths CAE desfgnatnd reprasantatlue shows &at tha U t meets the rcqutremants for 8 CMR NOx opt-in unit in 596.180 and meek tho alornents certified in 5 ss.l83(a](2), tho permitting authority will Issue a CAIR opi-in p m i t . Tha permIttIng autkoritywilf provide a copy of tho CAR opt-in permit la tho Administrator, who will then wldish a compliance amount for the source that

includos the CNR NOx opt-in unit unless tho soum already has a compiianw account

[fl Issuanca o/denfal ofcAIR opi-kt pemfl. Notwithstanding pangraphs (a] through (el of this section, if at m y ume before isnranm of a CAR apt-in pomit ror die unit, the permitting autliorily dctarmines that tho CAIR designmd roprcsontativo fails 10 sbaw that the unit meek tho requimmonts for a CASR NOx 0 bin unit Jn §s6.180 or meets tho efmrrniscoaiiiod in 5oa183(a)[2), tbn pwmitting authority will issuo a denial of a C A E NOx opt-in permit for thn unit.

[SI Dnte a f c d q Inlo CAIn NOX Annual Tmding Pragmm, A unit for which an initIa1 CAIR opt-in permit is ksusd by the pomitting authorily shall becoma B CAIRNOX opt-ln unit, and a CAZRNCx unit, w oFtbn letar of Januory I, 2009 orJanuary i of tho first control period during which such CAR opt-in permit is Issued

(11 If CATR dnsignated mpresontativa requasts, and the pnrmilting autbority ksues a CAR opt-in pmnlt providing for, allomtion to aCAm NOx opt-h unit of CARRNOx allowances undw 596,188[c) and such unit is repowered nRer its data of nntq into the CAR NOX Annual Tmdig Program under pprngmpli &I ofthii sedbn, thn repowered unit shall ba treated as a CAIR NDx opt-In unit rnplncing h e original CAIR NOx opt-in unit, as of tho date of start-up o l t h ~ ropoworedunlt's combustion dmmbsr,

(2) Nutwithstanding p m p p h s (c) and (d) afthissedlon, 86 aftha data or start-up underpaqraph (hl(l1 olthis s ~ ~ t i o n , the repowered unit shall be dBomod to have the S a m dato of crrmmencament oTopamtim, dato of commoncement of comma~ksl operadon, bwelino hmt Input, and basoIina NO% emission rate as the original CAZRNQx opt-in unit, and the orfgind CAIRNOX opt-in unit shall no Iongor be bated as a CAIRopt-in untt or a CAiR NUX unit. SQ6,T35 CAlA opt-In permit contents.

[a) Each CAlR opi-In pormit will contdn: (I) All eImcnts T i r e d fora

comploto CAIR permit ayplicaff nn under § 96.122:

12) The cerlifimtion in §90.183(a1(2): [3) Tha unit's basafio hoat input

under 596.184(c); [4) The unit's baselinn NOx mission

rate undcrS 96.184(d); (SI A statement whelher rho unit is to

be d o ~ b d CAIR NOx ~ O W ~ O C W under §96,l88[c] (subject to the-

011 Repowered CAE? N& opbln unit,

253 60 Fedcral RegistedYol.

anditinns in §596.184(h) and 96.185(s)]:

(E] A statement that !ha unit may withdraw from the CAIR NOx Annual Trading Program only in accordancn with 596.186; and

(71 A slntemcnt that Ihounit is su ect to, and the ownors and o eraiors of ‘x 0 unit must cornply witb. tL ra ukornonts of§86.187.

deemed to incarponto automaticdy tha deht!inns o t t m undor gs8,1oz and, upon recordotion by the Administrator undor subpart FF or GG of this part or thk- subpart, evory alIoEalIon, transfar, OF dodudon af (=AIR NOx dIawanccs tu or fmm tho mmplimce account of tho soum that indudas B CAIR NOx opt-in unit e o v m d by t h o CNR opt-in pennit. 596.18G Wthdtawal from CAM NO# Annual Trading Pmgrrrm

k e p t as provided undor pamgmplt tpl of this section, a CAIRNOX opt-in unit may wilhdraw from tho CAIRNOX AnnuaITkadIng Program, but onlyif tha pmlt ing mulhadty kssuos 8 noffficatlon l o t h o C A R dnslguatad raprorontntive ortho C M NOX opt-in unit of the acceptaaw of tho witLidrawd O€&E CAiR N& apt-in unit in accordmmwiih p m p p h {dl ofthis soclion.

[a) Reqrresfing wi~dmwd. In order to wttttdmw 8 CAE opt-la unit Imm tho W N O x h u d mding Program, tbe CAE dasIgnntod represotltalivc OF ths C M NOx opt-h udt shall subdt to

withdrawafleelive as ofmidnfght of Doeombar 31 ofaspecihd calandar year, which date must be at least 4 years nft~r&cembur31 ofthe parof entry into the CARNOx Annual Tradimg Program undor §96.184[g). Tho rcqucsL must bo submitted no later than DD days berm the requested efictive dats of withdmwd.

3 CAIR NOx opt-in unit mverod by a request undor paragraph fa) of this sectinn may withbaw born tha CAM N& Annual Trading fmgmm and th CAE opt-in pormit may be t m h a t e d undar p a m ~ p h (e) ofthissadion, the following condIUons must bo met:

[ll Fur thn conml pedQd ontling on tho dato on which the withdrawal is to bo oiFecUvo, the s o w thnt includes the CAIRNOX apt-in unit must meat the rcquIrtrmont to bold CAlR NOX alIowmw mdm 5 96,106[c) nnd Eannot have any oxtoss smisdons,

(21 AAnr the requ*mment fur withdrawal undar parogmph (b)[I) of th is sodon is met, the Admlnkbtor will doduct from &e compliance account of tha sou- that hcludos tbe

WR opt*in permit is

the PM’IIlittiX 8UthOritY B Mqtl05t to

lb] CondiLfonsfor rvilhdmd. Baforn

70, No, SIIThursday, May 12, 2005

CAIR NOx opt-in unil CAIR NOx d h ~ a n c o s cqud In numbar to and nllnmtod for the samo or a rior control period as nny C A R NOx aIp,wancw allocated to t h ~ CAIR h’Qx opt-in udt under I ~6.188 for any control period for which the withdrawal is to bo nffectiua If them are no remining CAIRNOX units a: tho ~OUTCB, tho Ahinismtor will closa the complinnee account, and the nwnm and operators of tho CAB NOx opt-in unit may submit a CAW NOx alIowmce tmnsfnr for any TPmahlhg c m M& d h W m C e 5 10 nndmr CAIRN& A l l o t ~ ~ ~ T r a c k h g Systom inaccordanen with subpart GG of this part.

requimments for w i t h h w d under p a m p b [a) and Ib] of tbis a d a n ara met fhcluding dadudon of tho full amount PICAIR NOx allowances required}, tha permitting authori~y wIIl issue a notrfication to the CAIR deslgnatod rapresentskive offha CAiR NUX opt-in unit of tho accep taaco of !he withdmwal of !he C m NOx opt-In unit as of midnight on D~wmbor 31 of tho ealandar year far which the withdrawal was rquested.

[2) If tho reqU~remont5 for d l h d m W d undar paragraphs [a) and Ibl ~f his sodion am no1 mnt, thn pamftting authority will issun a notificatton to tha CAIR designated representative o€ fie

NOX opt-in unit’s request to withdraw is denind. Such CAR NOx opt-in unit shall continua to ba a CAni NOx opt-in unit

[d) Fermif umendmenL After tho panntttlng authufitity issuns a notifleation under paragraph IclIll of this section tknt the mquhements for withdmwd haw been met, tho permitting authority will raviso the CAm permit covoring &a CAR NOx opt-in unit to termhato the CAIR opt-In permit for such unit as dLhe cETccti~u dah s p o d b d under pamgcaph [c)[z) of thIs section. The unit shall continue to ba a CAIR NOx opt-in unit mtil &e afkctive dato afthe termination and shall comply wih all. teequtremmts undar the GATKNOx ~nnual Trading Program coneaming any control periods for wM& ih0 unit is a C A R NOx opt- in unit, even If such mquhmenls arise or must be complid with &w tha withdram1 ta3xs effect.

conditions of withdmwol, If t h o permitting authority dodm the CAIR

iho CAIR desfgaabd representative may submit motharmquest to withdraw in accordance wjthpmgraphs (a) and @1 of th3s section.

[el Nuf@mIIon, (11 A€tm the

CArnNOx opt-in unit that tha CAlR

(01 Reappkutfon upon faflure tu m e ~ t

NO% Dpkh udt’SmqU0S& t0 Withdraw,

77;) ll7ulm and Regulations

{ i ) Ability lo mpplyio the CAlA NOx Annud Tmdhg Pmgmm. Once n CAlR NOx apt-in unit withdmws from the CAIR NOx Annual Trnding Prognrn and ik CAIK optin pormlL is tanninatod undarthii section, l?m C N R dosignatad rnpres~ntatIve may not subrnft another appSiutlon fora CAIR opt-in pormlt undar 59B.183 for such CAB NOx opt- in udlt beforo tho dots that is 4 ymrs after tbo date on which tho withdrawal bowrno cKodlva. Such now appllutiotl for B CAIR opt-in pornit wiH be m t e d 8s an initial a pliation Far a CAIR opt-

Nnlwivrlhstandiag paqnphs tal through ( f l of this soction, B CAIRNOX apt-in unit shall nottbn aligibta to withdraw h m &e CAIR NUX Annual Tradhg Pmgmm i€ Iho C A R dasignnated rcprasan\athe of I ~ D CNR €40~ opt-ln unit requests, and the ponnitflng 8UthOri1Y issues a CRIIl NOx opt-ia pormit pmviding for, allocation to the CAlR NOx apt-in unit of CAIR NOX allowances undat §96,188(c).

§96,1,787 Changeln Fegdatorysbtus [o) Natlfimlrun, If a CAIR NUX o t-in

unit hewma a M NO^ un~t uaiPor sa6.1W. then tho CAIR designated mprasanla tiva shall notify in writhg the permitting authority and the AdmI&trator ofsuch E h q n h the CALR NOX opt-in u t ’ s rqyIatory slatus, within 30 da s of such Ehanga.

Pmittingautioriiybmd AdminislMiarS adom.

a CAIRNOX unit undor 5 W 0 4 , tho pmniitIng authority will the CAJR NOx opt-in unit’s CAIR op t - k permit to mERL rharoquimmants ora CAIR pmdt under 596.123 as of Le data on which tka CAW NOx optin unit bemmos a CAiR NOx unit under 5 g6.104,

[2][1] Tho Admlnlstratnrwiil dndnct h r n &B compK~nco account af tha source that indudas the CAIRNOX opt- inunitthat bncomesaCNRNOxunIt under §96.10C1CAmNOx allowances squd in nltmbar to a d allomtcd for the samo or B prior eantml erhd BS:

allamted to LhaCAlRRNOx apt-in unlt under §ss.iaa for any conbl period after iha date OR which &ha CAtR NOx opt-in unlt becomos P CAIB NOx unit under 696,304: and

opk-in unit bacomas a CAlRNOx unit undar 5 96,104 i s no! Decembor 31, the CAIRNOX dowancas allacatod to tho CAIRNOX opt-iauaitundar§g6.38efor the conml poriod that indudes tho data

barnmas D WIR NDx unit under

ia B d t U P B nr596.184, 61 I m h € h y to wilhdmw.

ti) Ifa CAIRNOX opWn unit bacomos

I*) Any CAlRNOx afsowmces

[B] H thn date on which tbn CAIR NOx

OR W E & t h R NOx 0Pt-h Unit

Federal RegisterlVol. 70, No. 91IThursday, May 12. 2o05lRules and Regulations 25361

59LZU4, mullipkd by tho mtio of the numbcrddap, In ?ha control period, starting rvith the data on which tho CAIR i'l0x apt-Sn unit bocumes 8 CASK NOX unit under 5 96.104 dividod by the total aumhr of days in ths ennhd period and rounded to the nearat Iuhola allowance as apprapriata.

rapresenlativn shall ansum that thn

Includes tha CAIRNOX unit that becnrnB a CATKNOx unit wador §%.lo4 contains the CAR NQx nlloivancos nncessary for corn letion of !ha daduclion mdarpmg& cbI(Z1fi) D r t h t s sectran.

(3][1) Far every c o n h l pariodahar tho dale on which the CAR NOx opt- In unit bmmas B CAIR NOx unit uedor §06,104, tho IXEtNOx opt-in unit VViIJ b~ troated, solnly hrpurpses o F C ~ N& allowancu alloutions under §96.292, E- R unit that commences opamtion on tho dato on whfch t h ~ CAIR NOx opt-in unIt bcwmes a CADI NOx unit under 895.104 and MI1 bo a l l m t d CAIR NOx alIowances under 5 96.142.

O i l NJotwihtmding paragraph b)[3]m o~thisscc~on, if the date on

hecomes P CAn NOx unit under 5EI6.1M isnotJanuary I, tba fdIDWing nurnbcr of CA?K NOx ellowancas will bo dIocatad tn the CAIRN& opt-in udl (as a CAlR NOx unit) under 5 96,142 for the control periud that includcs the dato on which tho CAIKNOx opt-in unit becomes a CAlR NOx unit undar § 96.204:

(AI T ~ R numbar of W N O x aliawaucos othanvisa a l lmtod to tho CAIR NO, opt-in unIt [as a CAIR NOX udt) undar 5 96.142for &ho control paiod multiplied bu; p) Tbe ratio of tho numbm of days,

in the conkd period, c1arting with the dah an which t h ~ CAlRNOx cpia unit bemmns a CAE NOx unit under $96,104. divided by &e total numbstol day5 in the control period; and

[C) Konndud io lho naarest wholo allowance as appropriate, §SS.IaS NU~allmancealto~atttrns lo CAIR NOx upth unlts.

(a) Timing requirements. (1) Whon the CAIRopt-in p m t t is issuedundor §96,184(0], tha parmitiing authori wItl

CliIRNOx upt-in unit, andsubmit to the Administrator tho dbcation for the control period In which a CAJR NO, opt-in unit antors the CAIR NO, Annual Trading Prngmm undm §96.184[el, in ncwrdanc~ with paragraph b) or (c) of thk section.

(ii) The CAR designatad

urmpIIance account of tba sourcd hat

which h CAN NOx 0pt-h UnIt

aUmto CAE NOX dowaaces to 2 e

(2) By no later tian Octobor 31 oftha conuol pnriod in which a ChtR opt-ln unit onbrs lha CAIR NOx Annual Trading P r o m undm 5 96,184&] nnd October 31 of each year thereafter, the permitting authority will alhcato CAIR WOx allow~nces to the CAIR NOx opt- in unit, and submit lo the Admhistmlor Ihe nlloeation far tho control period that includos sueh submission deadlhe and iu which the unit is 8 CAIRNOX opt- Innnit, in accordance with p a m p p l Ib) or IC) o l l h b sectlon. bl Cdwbliun ojaflocaflon. For each

control pariud for whldh a CAlR NOX opt-invnit is to bodlocatadCAIRNOx allowamas. rhe pormitllng author@ will allowto in ncmrdaneo with &a following p m M dutes;

(11 The haat input [in mmBtu1 used for cdcuhting tho CAIR NUX allowanca dIomiion will be thnlessur oI:

(D Tho C m HOx apt-in unit's basdine hoat input determined under § 96.104[~1: or

(ii) Tha CAR NOX opkin unit's heat input. 85 dntermincd in accordance with subpart HH of tbk part, ror tho hrnadiatdy prior cnntml psriod, axcept whea the allomtian is bsiug ealculatsd for b o eonhol perfnd in which thn CAlR NOx apt-in unit a n h s thn CNR NOx Annuel Tmdig Progmm under 896.1893.

(21 The NOx ernbion rate (in IId mml3lul mod for dculaliag CAIRNOX allowance albmtions will bo i h ~ lassor Ofi

(i)Tha CAIRNOX opt-inunit's baselino NOx umissi0ns rat0 Fa lbf m d t u ) determinod tmdnr 59t.la4ldl and mltlplfed by 70 perant: or

Oil The most siringenl Stat0 or R h l NOX omissions limitatran applicab?o 10 the CATRNOx opt-in unit at any rima during tho wnml period for which CAR NUX allowances am io bo allocatd [3] The permitting authority will

allowto CAIRNOX ~ ~ D W M C ~ S to the CAIR NOx o bin unit in m amount equaling &a%oat input under p m p p h @ ] [ I ) oE !his sockion, rnuIUpliod by tho NO% amtssiaarate under asagmph b][2] ofthis S d O I I , d d c d by~,Ooo lbflolon, and rnunded to tha nearest wholo allowanca as nppropriare,

[e) Notwlhtaadlng panpph fi) 01 thfss~ction andifthe CAIR daignated rapresmlntive ruquests, and tbo pennittirig authosity Issues B CAR opt- in permit providing tor, alloestiun to a CAfRNOxopt-inunit oTCARNOx allorvaticas under this paragraph (subject to the CuondItiDns in §WG,l84&1 and 9S.l86k)], the

(11 Foreach conup1 eriad In 2003 though 2014 for whici tho C U R NO, apt-in unit is to bn allomled CAlR NOx nliowances.

caaIculaling CAR NOx alIowmca allmatioar; will bo determinod as dascribtrd in parsgraph &)[I) uf this seetion. (ii] Tinu NOx emission rats (in Ib!

mmB tu1 used lor calcdnling CMR NOx d10wama alIIowtIons wiIlbe the lesser OF:

IAl Tho CAIR NOX opt-in unit's baselino NOx amfssions F B ~ C Iln Ibf mmBtu] dgtermined undor § 96,184[dl; or

[nl The mwst stringant Slnto or Fedorsl NOx nmLsIoas limitntlon ppplfcabla t o the CAm"Qx opt-in u d t at any tima during tho control period in which ihba CAIR NOx 0pt-h unit enters &E CAlK NO# Annual Trading Program underf9B.l84[g).

[iii) Tho pamittingauthority rvlll allurnto NOx ahwanecs to tho CAR NOx opt-in unit in an amount equahg tho hear input under paragraph (c][l)fi] of fhis smtion, muItiplied by thn NOX emission rata undarparagrnph (c][l](ii) ofthk sedon, divided by 2,000 IbAun, andmunded to Ihhe nearest wholo allowance as a proprinb.

(2) For aach tonka? uriod In 2015 and th~reaEtar ford& thoCNRNDx opt-inunh i5 to bo sllomted NOx allnwances,

calculaiing tha CAIR NOx alIorvenco allocations will ba detmhed ns described in pangraph &][I) of this

til The heat input [in mmBtu] usod far

(I) The heal input fin rnmBtu) used for

N& aliowanea alkwtian d l 1 be the losser OT:

The CAIRNOX opt-In unit's basdine NOx urnisslons nts (ii lbl mmBtu] determined under §96.184tdh or M The most stringant State or

Fcdonl NOX missions IimitoUon applicable Io the CAEt NOX opt-in unit at an time during &a control pwiiod for

allocate& (iii) T h o pormItlIng authority will

allocate CAIRNOX allowancas tD &e CAIRNOX opt-in unit in an amount oquahg &a haat inputundsr m p p h (C][Z)~] ofthis section. mullip&d by ths NOx amission rata under paragraph [clIZlOIl nf this- sedan, divided by 2,000 Iblion, and raunded to tbn nearest whola allowanceas B pmpria!e.

[A) 0.1s I b t d t u ,

W h i J C A E NOX alIomces are to ba

(a) Remrdotion. (&ha

25362 Federal Rcgister/Vo~. 70, No, 91 /Thursday, May 12, 2005 /Rub and Regulations

indudcs the CMRHCk opl-in unit. tho CAIR NOx allowances ahcatedby tho pmitting euthorlty to die CAIRNOX opt-in unit under paragraph (al[ll ofthis section.

(2) By Decmbml o€the contra$ period in which a CAR opt-in unil aaters thn CAIR NOS Annual Trading Pmgmrnundw ss.ias[s) and Docombor 1 of each ycar IhoreaRw. the AdminisLmtdrwil1 n x o r d , In t h ~ compliance account of the source- that indudes tho CAE NOX opt-in unit. the CNR NOxallownacos dloeated by iha permiMing authority l o tho CMR NOx opt-Inunit undorparagmpb [a]@] oft&

I 3. Part 96 is amnudad by adding subparts M A tIimug€t CCC, adding and mervins subparts DDD and EEE and ad&rgsubpar!s FFF though X to read as foBows: SubparlMA-WR SOtTradlng Program G a d Pmvlslons scc

96202 Dofinitionr. 86.2D3 Mea~lrpmrmtr. eb~mVht~ans,mnd

SECtiOK

M20I PurprnP.

hear Input data. -

Subpart I lMAIR 9 0 2 Opt& Unlks 16380 ApplIeabfilty. 96281 Gmed. 86252 CAR d@unted mpmmlrttive 96.283 AppIyhg hr CNR opbh pormft. W 8 4 Opt-ln pmas. 96385 ME npt-In mIt mntmk

96387 Q m g u In mguIatorystatrrs. 98365 ~ r t l l o w a n c o allndonskn CAE

Subpart MA-CAfR 502Zmdhg Program General Provklons gsfim; Purpose.

This subpart and subparts B3B through III cstablIsh tho model rule comprishggeneral provisions and the dsigaalad mprasentativo, srmhtlng, al lomco. monitodng. anfopl-in pmvisions fur tho State Clean A t IntarstatB Rule (CAIRJ SO, Tmding Prcgmm, under saction 110 of the Clean Air Actand 551.124 ofthis chaptor, as a moans of mitigatfng intarstate

96.286 Vfi lhhwal E m C A I R S D m n a pmwm.

SO1 opt-In units,

incorporates by refnrence such subparts or othenvisa adopts therequimmants of suchsubparts in acwFdance wilh 5 51.124(0)~1] or (2.1 of this chaptar, the- Statosubmits to the Administrator ona or mom revMans of tho State- implemontation plan that indude such adoption, and the Administrator approves such mvisians, If t h ~ Staka ado@ the rnqukemonts of such subparts h accordaaee with 553.124(0](1] or (21 ohhis Jtaptes, then the State authorizes the Admidstrator to assist State in Implementing the CAIR S a -ding Program by =trying out t h ~ functions sot forth for the Adminkstratorlnsuch subputs.

gS62U2 Defldfloons. The t m s used in thk subpart and

subparts BBB ihrough III shall have tho mmnlngs sat forth in this scdion as

Accounl number means tbn fdmtihtion number given by the AdmirrJstratorto each CAfRSOr A~Iawance Trackin8 System account.

a limitation on smksioas ofsulfur dloxida or nitrogen oxides undw the Acid Rain rrngmm.

Acid Amn Frogmm means a multb stab sulfur dioxrde and nilrupn oxides air pollution control and m h b n rndudion program steblfshcd by thn AdministmtorunderiItla ?V ofthe CAA and a r k 7z thraugh 78 aflhis chapter,

Admfdstmtor olthaUnituddtates Envimnmenlal Proleetion Agency or tho Admiaislmtnr's duly authodmd mpresmtatrue,

A/luca!u or rrlfoccltfon means, with regard to CATR SOX allowances Ismad undertho &id Main Pmpm, tbo daiemination by tho Administrator PF the amaunt ofsuch WilR SOX sllowances to bn initially aadltcd to o CMR Sa unit and, with regard to CAE S O ~ d l o ~ a n e s s issued 59DmZ8B, the do!srmCnnlIInn by tho perdtthg autharity of tha amount ofsuch CAIR SOaaliowancps to ba inilhlly cradltod to a CAIR SO, mil.

Allowance imnsler dendine means, far a conbol pmhd, midnight of Mmh 1. if it is abusfanor;~ day, OF, IfMarch 1 is not o hushas day, midnight oftha f~ hustnsss day thareaRar immndfately following &a cnntml perlodad is the deadhe by which a CAIR SO2 allowanma iransfer must bo submitted for rewrdatInn in E CAIIlSOz soureds wrnplimee aeeuunt in order to be usedto maet &P sowee's CAIR SO1 emissions limitation for such control period In accordancowjth 596.254.

repremhiive means, for a CAIR SO1 soufc~ and each CAlIESOl unit at the SOWB, the natural potsonwho is autbodzed by the oivnats and operatars of fh~swrce and dl such units at t h o SOU~TE In accordance with sub arts 3BB andIIIoFlhispart.loaclonhePlalfof tho CAR desSgnatedrepresentatIva in mat~ers portdning to tho m S O 2 Tmding Propram. I€ tho CMR SO, suurce is a150 n CNR NOS SOW, than U s natural person shall be thusama parson as the dtttrnaia dusignalnd r0pmentativn under h a CAlR NUX Annual Tradia Frpgram, If the

Sewn sonrce, &on ibis natural potson shall bo &e sarnapassonas the aliemato CAE7 ddgnatnd reprsssntative under

TOIIOWS:

Acid nuin Ernrssions limitniion mmns

A~dnistmtormmns tha

dtemafe CUR desi'gnated

SO, s o w e is a f so 8 CAEI NOx Ozone

77 3 Federal Regkler/Vol, 70, No. 91 /Thursday, May 12, 2005 /Ru?es and Regulations 25363

the CAR NOX Omno SmsonTmdSn Program. Iftho CAIR SO2 source i s afso subjcd to tho Acid Rain Program, thnn this rratusal parson shdI he tho samo personas thealternata daslgmted representative under tlie AcIdRain PIUpUL

Automated duta acgutsition und handling system or DAHS m a n s that component of the continuaus amissfon rnoaitorhg system. or other smissions monitoring systom appmvod for us0 wdcrsubpnrt HHHofthls pad, desIened In in!erprat and convert individual output sjgnels from polletmnt coneantratlon modtors, flowmonilors, dllumt gas monitors, and other component park nf the- monitoring qsiorn to produce amontinunus record ofthe maasurod pammotars la &o mmscmnnt unik q u i m d by subpart

Builermcms m andosed f a d - or othnm7ml-firod combustion davice usod ta pradum hat and to tnnslor haat to recirmlathg WBtOr, steam, or othor medium.

BnUomingqde cogenemtian unit moms B wgcnoration unit in which thc snergy Input to the unit is Erst usud Lo pmduce meld h a n d cnargy and e1 l out soma of the rajeet heat frpm Ihhs useful ihemaI energy ap Iicalion or prncsss k than uscd ror $m-iciiy produetioff.

represcntoiive mmns, with mgard to a gmed amunt, a respo~sIbl8 natuml p m ~ n who Is ~uthorized, in acwrdaneo withsubparts BBB snd III oft& part. to tFansler and otharwisa disposo of CAIR SO, a h u a n e e s held in the g~neral eccnunt and, with regard to 8 compliance account, the CMR designated representative oftba sourn.

means, For a CAIR SO1 m u m and oach CAIB SOZ unit at thn sowco, the natural pmon who is nuthorIzed by the owners and operators of thn s o m and allsuch units at the s o w , la accordance- wlth subparts BBB nndm ofthis pat4 to rapmeat nnd legally bind OR& owner and oporator in matlaa pdaSningt0 &a CAIR SO, TmdLng Pmprn. If Iha CAfR SO, sauce Is also 8 CAIR NOx source, &en !his natural porscn shall be tho same pemnasthoCAlRdesignated reptpseniative under thcl CAlR NOx Annual Tradin Propnt. If the CASR SO, snmm Is &ti a CAIR NOx Oznne Seasonsource. then this natural person skall bo the samn person as thho CAIR desIgnnted ropresenlatrve under tho CAE NOx Omna Swon T m h

HNNoF~ispPrt

CAIR auLhorized account

c m d tdPQkd RpECnhiiV8

person as tho dwignntcd roprcseatallva undartha Acid Rain Program.

CAM NO x Annual Tmding P m g m means a multi-statn nitrogm oxides air poIIution conmLand emission duction prqpm approved and administared by tha Admidslrator in accordam with subparts AA ihrough il o € W part and 551.123 olthk chapter, as a mean5 of mitimating intorstab ~rat~~portoff-e partkulaks and nitrogun oxides.

CAfR NDx Ozone Senson some meam a s o w e that Includes one or more CAE NOx Ozone Season UaIts.

CAlR NOx m n e Season TmdXng Pmgrnm means a multi-state nitrogon oxIdes 8hpOktti011 contd and aissionraduction pmgtam approved and administored by the Adminfstmtor in aeetrrdanee wi& subpark AAAA h g h IIH ofthls part and fi51.123 of Chis chnptnr, BS a means af mitigating intarstatn hnsnort oFozona and

a nnlt !hat is sllbjoet to CAlR NOx Uzoao SoasonTrading Program nndw §95.3114 and 8 CAIRNOX Oxono Season opt-in unit under subpart MI of &Is Part. CAIR NOxsaurw means a SOU~CQ &at includes ona or mom C A E NOx units,

NOx unit maans a unit that is subjod to &e CAIR NOx Annual Tmding Pmgmm under § 96.104 and a CAIRNUxopt-inilnitundarsllbpartl1

adpermiit m e w &a legally binding and fedmlly enformable written document, nr orlion of such document, Issued by i e wmittiug authority under subparl CCC OF this part, iacluding any pemitrevisions,

P ~ g m m requirements a pliable to a CAIRSOZ SOUrcB, to ea% c m so2 "nit at &Q somo, and to the ownors and opmtors and fie W designated rmresentativa olthe sourca and each

OfW5

spedrying fbe CAIR so1 m a i

authurizati& issuod hy the Admlnlstmlor under tha Add Mi Pmgmm, or by a permitting autharity under gskzas, to omit s u l h dioxide during the conk01 period oftha specifi~d d e n d a r year forwhich ~IIP authorirntion is alloea!ed or OF any calendar year thereahar under !ha I=AIR SOx Tmdiing Rugcam a5 lo l lo~s:

[I) For ona CUR Sot allowance aUoeated for I control pcriod in a year bofore 2010, om ton o f d h d o x i d e ,

(31 For ona CAIRSU~ ahwanca dlcated for a wnttol p e d d in 2015 or later, 0.35 ton oTsulfurdoxIdo, oxcept EIS provided in §9X254&1,

AII authoritation ta amit sulfur d i d d o that is not issued under the Acid Rain Program or under tho pmvkions of a State imphmentntim plan that is approvod under §51=124(a][l) ar I21 ofihis chapter shal1 not be a CAIR SO1 alIawanee.

CAM SO3 dtowanm dedudon or dedud CAm S 4 obwncesrneans tha parmoaont withdmwal of CAlRSOt allowances by the Adrnhistralor h m a wmpliance amount In order to account fara s p e c i f i d number of tons of told sulfur dioxide omissions horn all CAIEZ S& units at a CAE SO1 source for a mnbol period, &terminad in acedance wibmbpartHHH oftbis part. or to account for B X C ~ emissions. CAIR SO2 Allowance Tracking Sysl em

means tha systorrt by which tha Administrator tamrds alheathns, dnductions, and transfers ofGAIRSB allo~vvanms undar thu CARS& Tmding Program. This is tLa same 5yStom as tho AlIowance Tracking System undur 5 72.2 oFibbb chopler by which t h o Adminnhfxator records dlocations, doduction, and bansfors or Add Rain S a allowances undar tho Acid Mi Program.

account means an account in tho CAIR SoI Allriwance Tracking Systorn BstabIished by the hdmlnistnlrrr for p q u s e s of rrteordhg the albcatkn, huldlng, tmsferrinfl, or deducttng of W S O I allowan- Such allowances willbe allamtad, held, deducted, or traaaferred onl as whole allowmeas.

CAM SO1 ~ t h n n w s heid or A d d CAfR SO1 uIlorvanFesmmns t h ~ CAIR SO~allowanees mcorded by the Administrator, OrsubrnIlodto the Admf~s~tar forrecor~ l ioP , in accordance with subpw FFF, GGG, and III of IUS part or part 73 ofthis chaptor, in a CAlRSCx Allowance Tracking S stom accnuat

far a CAIR SO1 sourco, the tonnage equiudont oftlie CAIR S& nllowances available for deduction h r the suurce under 5 9 6 ~ 4 ( n ] and (b) fur acmtrol parind. CAlR SOzsaurce mean5 n sourci tht

includos ODB D r mure CAN SQ units, CNR SO2 Tmding P m p m m m n

multi-slate sulfur dioxide air polIution control and smIssion reduelioa program approved and admfnktmd by tho Adminkhalor 3n accordanto with subparts a through IIT ofthis part and 551.124 ofthls dmpptpr, 85 a means OTmilrgating intwtats bansport o€hm

CAM SCr, Allowan w Tmckfng System

DUA S$ cm~sions limitation means,

25364 FderaI Registar/Vol.

CAM SO2 unir m u a unit that Is subjoci to the CAIRS02Tmding P m p m under 996.204 and, axcapt for

unit under subpart n1 olthfs pat. Clean Air Act or CAA muam tho

CteanAIrAcL42 U23.C. 7401, else+ Cudmeans any solid fuel classified as

anthracite, bilurninaw., subbituminous, or lignite.

CoaI.derived fuel mmns any fun1 [whelhor ia a solid. liquid, OrgaSPOU5 state) produced by the mcehaniul. thermd. or chemical promsing of coat

Cudfimdmnans ambusting an amount of coal or coaldarivcd fuel alone. or in combination with my amount or any other h0t

#genmtion unit means a slationq, fussll-fitol--fircd Mhr or s t a t h a y , fossIbfud-fKed cornbustIon turbino:

Ill HavinB equipment used to pmduca electricity ond useful t h m a I s n q y for industnd, commorchl, heating, or cpaUng purposcs h u g h &e sequential use- oCnnorgy; and [2) Pmdudng during !he 12.monlh

p~dodstarling on the doto t h o unit first produws oloctridty and during calendar year aftor which the unit first pmdum 011~kidQ- (i) For B topping-qcle co~enarattm

unit, !AI Useful th~rraal energy not less

than 5 percent of total enorgy output; md

tl3) Useful p v e r that, when ndded lo ana-half o f weld tharmaI onergy pmducad. Is not Iess then425 pareant of total onegy input. if usoful tharrnal onwgypmducedis 15porcen1armoro of total energy output, or not less than 45 percant of total enorgy input, if usaful them1 mow rodnced fs less

(II] For a bntlomingqcla caganeraUoon unit, llseful power not less than 45 pewnt oFtntal energy input.

Combushn t u d h mems: [I] An enclosed dwim comp6sing a

compressor, a comb~~stm, and a lurbino and in which tho flue gas msultttlg horn &e combustion ofhd in t h ~ eombmtor passas through tho tlubkm, rotating the turbine; and [Z) Ifthe anclosed device under

para ph [I] af this definition is

rowvq steam genemlor andsfom turbine.

Commmce ~ommmiu2 qemLIun mms, wilh regard io n unit swing a

I

P W P O E S of 596.2D5.8 so, Opk-hl

the 15 pnreont oftotaPeasrgy output

corn I? Ined Eyern, any associated hmt

70, Ha. SIlThursday, May 12, 2005

commenca commarcial operation as defined in psragnph [I] of this definition onnd h a t subsequently undargoes a physical &mga tother &an replaccment ofthe unit by a unit et tho same source], such dato &all rsmain tho unit's date of commencement of commercial o erniim,

fii) For n unft that i s a CAIR SO2 unit under ge6.204 on tho data the unit commences commmlal opoxadon as dofinad In para deEnItion and gt is subsequently replacud by a unit at the same 50urctl (e.g., ropowared), the rBplacoment unit shall bu tmated 858 separatfilrnik WiLh a sopmta data for wrnmmmment of commercial operation as d e h a d In paragxaph 01. G'h or (3) at this debiff ones appro riala.

(21 NotwithstandPag pagraph (11 o l this definition and except as provided In §S6,205, fora unit that Is not a CAIR SO2 unit under Q96.ZOll on f h ~ date the unit comm~nces commercial operation as defined in paragraph [I) of tbts dofinitfan and is nnl a unit under pmgtaph [a] of &Is dafmitfon, the unit's doto for wrnmcncement of wmmarcial oparation shal1 bo the date on which he unit b e a m = a CAlR SOX unit under §96.204.

[i] For a unit with a date for commaamant of cornmoteid opmtinn as dafinened in pangraph (21 of ih?s dofinition and bat subsequentty undargos a physicaI chmgo [other &an replacement ofthe un5t by a unit at thn ~ a m n soum), such date shall remain tha unit's data of commencement of comrnnrcial opparaiion.

(ii) For B ilnitwith adale for ammencement of commercial a m t i o n as defmad in paragraph [2) of this definitian and &a1 fs subsequently roplaced bya unit at the s m e source

sball be treated BS a sepamte unit with L soparats dah for commcement of commercial operation as d&ed in pmgraph 01,121, or !3) of this dehition ES ap

thIs definition and excapt as prnvided In 696584rhJ or 8 46,287fb113], bra CAIR SO2 opt-in unit or E unit For which a C m opt-in permit application is submittedand not withdrawn and FI W opt-in permit is not yet ism& or denIod undersubpart l?l afthis part, the anlt's date For cornmancement of commercial operatinn shall he the date an which the awnor Or apemtor is requfred la start monitoring and reporhg the SOX emiss'ins rata and Iho heat input orha unit under § 96.284[bl[llHi).

0) Far a unit wilh a data for commcncamont oI wmmewial

ph [ I ] of this

[E&, m p w m d ) , !he E 8 p h t l l E U t unit

(3) NoWiths~;&pph Ill of

,'Rules and Regulations

operation as dofined in paragmph (31 of h i s de8nihn and tbskubscqumtly undorgoas a physical chanp [othnrthan replacamant of the unit by a unit at tho samo sour~),such dam shall remaIn tho unit's dale ofcommencammt or cnmmordal opnrntion.

[ii) For a unit with a dab for commencemenl of commercial operation as defined in parapph (3) of thb dolinltion and h a t is subsequently rflplacnd by a unit a1 rhs SaIIOSOKrCU (e& ropoweredl, Lhn mp!acnment Unit shall he trnated as 8 separate unit with a sepanto dnta for comrnoncoment of crrmmerdd npetation as dofined in amgraph (11, P I . or (31 QChis

Lni l ton as appropFiab, I41 Notwithstanding pamgmphs 01

tbmugh [3) oftbfs dofhition, fnra unit not W a g a gunerntor prndudng eleetridly for sale. Ihn unit's dato of commencomont of opmtion shall also be ULO unit's dat0 of commencement of commercia1 opperatioa.

Cummenco operalion meam: (1) To haw bQun any rnPehanim1,

chsmlcal, or olcctronnlcpmass, indudiag, with rugard to a unit. slart-up ofa unit's combustion chambw, oxcopt as provided in 5 96.205.

[i) For a unit that is a [=1yR SO2 unit under gsn.2olr an &B dnto tho unit commences operation as darutcd in parapph (1) ofthis definition and that mkcquontly undqoes a physiepl c h n p [other &an raplacamant of tho unit by a unit at tho $ m u snwce), such dab shall remain tha unit's dah OF commmcamont oEoperation.

(ti) or II unit &at is 8 c m saz unit undor ggG.204 OR !ha date the unit commences oparaiion DS dolined in pmgraph (I] of thfs definhion and that Is subsequently mplaced byn unit at tha same sourw (s,g,, mpnwored), t h o raplacemant unit shali ba h a t o d as a separafe unit with B sepatatc date for ccrmmenemnt of operation as defined In parapph 01. @I, or t31 OF this definition as appropriate.

(21 Nntwihtandingpamflapagraph (1) of ihii dahitIon and exeopt as provided in 59a.205, loraunit IhatIs not a WIR SQ unit undor §96,204 ou ths datu tho unitcommancos operation ES defined in paragraph (1) o f t h i definflion and is not audt uader p m p p h (31 dths definition. tha unit's data for wommencPmmt doporntion sbaII bo tho date on wbich tho unit becomes a CAR SO2 mitundm 96.204,

commencement of opemtion as dafinnd in paragraph (2) uf this deRdtIon snd that subsequdy undergoes a physical &ngo [ohorthan raplewmont of Ihu unit by a unSt at tbu same sourc~). such

[i) For e unlt with a date far

Fedcral RegistcrlVol. 70, No. 92lThursday, May 12, 2005/RuIes and Regulations 25365 *

date shall remain tho unit's dale 01 commencmcnt of operation.

commcncarnent af o n d o n as defined in p m p p h 121 of dis defmition and t h ~ t is subsequmtlyroplaced by a unit at tho same sowcu kg,, repmvercd), the replaearnant unit shall ba treated as n sopamta unit with a sepmte date for #Immnnmrnont af opention as deSnod in patqraph (1),[21. or (3) ofthi - dofinition as appropiata

(31 Notwithsimding paragraph [I] of this dofiniuon and except as provided in 5Y6.284N or§96,287[b)(3), fora c(cIRS01 opt-inunit or a unit forwhfch B CAIR opt-m pmdt ap rialton i s submbd and not w i d a w n and ci CAIR opbin parmil Is not yet issued or danied undorsubpart III of this part, f h ~ unit's datn for commoncernont PI operalion shall be tho date w which the owmr or operator Israquirpd to start monitoring and TP orting the SO2 missions raw anfh hpat tnput oltha unit uador W6.ZE4(b][l)[i). [i) For a uniL witli a dnto lor

commencornent of uperatiinn 8s- defincd in p-ph (3) of thh dafinition and that suhsnquantly undqoma ptysiwI change (oohar thau replacamant arthe unitb aunttat LhmmesDI1TtO),such date s h ramain the unit's dnto of w m m ~ m m i n t of upemtion.

commcacoment ofopontion as dalined in paragraph [a) ofthis dofinition end that t subsequently repladby a unit at the same source kg., mpowemd), the raplacment unit sha?l bo troabd 8s a sspmte unit with asqtmto dale for cammencement olopomtion as defined in pamgraph til, (21, Or (31 uf Lhi dolinitinn as op rap*ate.

ihrough which smissims from 2 or mum unIts am mhaustcd.

Corn liancc amount means a CAIR

xwunt. aslablishnd by the Administrator fora CAZRSOtswrce fiLlbjBct tn an Add Rain ernhim limitations undorSn,31[a) or (b) ofthis chapter or for nny h t h r GAIRS4 sourn under subpart FFF or IlI ofthis part. in whkh any CAIR SO~aII~wanca altPcatinns for the CAR SO2 units at the 60UKO rn initidlyrecorded and in whkhamhe1danyCAIRSB allowancss ~ a l h b 1 ~ €or use €or a conk01 periad in ardor l o meet the sotuco's U l R SO2 emfsslons limihticn in accordance with §3&254,

Cantinuour; emission monitoring sydm or CfiMSmeans tbe cquiprnsnt roqu'mdundor subpart NHH of this per! to sample, a n a l p , measlun. and provido, by m a ofreadhgs remrded at Ieast onci awry 15 mhutw (using m

(iil For a unit with B dale far

(iB For aunit wlth a dntta for

&lllmi3 &IC$ a S h g b n U D

SOLAlPowaneP T m c b g Systm

automated data acquisition and handhg system (DAHS)], a permanent record of sulfur dioxide emissions, stock gas volwnotric flow rata. slack gas moisture wntcnt. and oxygm or a b o n dloxide wnecntratIon [as applimbla), In a manner consistent with p a 75 afthls chepler.Tha following systems are tho principal types or continuous amissIon rnonltmhg systems required uudor sub art HHH of ?Us p ~ t : (8 A flowmodltonngsystam, mnsisting ora stack flow reto monitor sad en au~omated data aequfsition and hantlling system and providing ti pormmont. mnlhnuous record ofdack gas voIumotdte flow xato, in standard cubic feat er hour (scfhl;

(2) A mhr dioxida monitoring SyStQm, consisting of a SO2 poIhtant concantration monitor and an automated dab acquisition hnndling systom and providing a permanent. contiuuous record aESOt embsions, In p*pm million (ppm);

deEned in §75.11(b]{z] of 8k chapter and providing a permanent. mntiauaus mcmd 01 lhe stack gas rnoklure conlont. in mmnt WP;

& A mhon dioxide monitor@ system, wmisting ofa C 4 pollutant concontration manttor [or an oxygen munltor pIus suitablo mathernatid equatims h m which thn COI concentration is derivudl and an nulornaiad data acquisition and handling syslem and providing a permanent. continuous record of COz emissions, in percent COa; and

(51 An avgen monitoring system, conststing of an 0 2 concentration monitor and an au lom~t~d data acquMtion and handling system and providing a psrmanant, continumu w o r d of OaIn porcent ol.

Conmf penod means tho p d o d beginning January 1 ofa calondargaar and mdiag on Dammber 31 of the same yew inclusive,

Emisslum means air pollutants mhausted b m a unit or s o w e iulo th8 atmosphere, as mewred, recordotl, and raportsd ta t h e Adminisirator bytho CAIR designatEd representative and as dctnrmined by the Administrator In amdance Wilh subpart W H oft h P a

Excsss emisshns meaas m y ~ O K , or portion of a ton, of sulfur dloxido emittad by tbe CAR SO2 mils at a CAR SO:: source- durhg a control p ~ h d that exceeds the C A R So1 emissions limitatron for the sourn, pmuided that any porlioa ora ton of exwss emissions shall be treatad as one ion of mm% smissions*

[31 A mOhtWB mOnjtUCh SyShM, aS

FussiUtrd means natural gas,

Iiquid, or gaseous fuel dorived from such material.

Fa&fudfimd means, with regard IO a unit, combusting any amount of fussil fuel in an d m d w yeas.

~cnemjlocurunl means a mm SO^ AllowaneaTracking System account established under subpart FFF ofthls part. that is not a corn liance account.

memtor means a L t c B that produeas eleclrkity.

Heat input means. with rogard to a spectfiod period oltirne, the ptuduct [in

of tha fud [in Btdlb) d M d d by 2,oau,oon B t u l d t u a i d multiplied by tho fuel reed rat0 into a combustion ~ B V ~ C B {in Ib oFfudllfms), as rnaasarad, fewrded, nnd rope-d to tho Adminiskator by &he CAR dmlgnatod repmeatativo md datarmimd b tho Administmtar fn accordanert w d subpart EMH of this part and oxeluding tlm hcnt dorived h m preheated eombustio~ air, rodmlalad nun @sei, ar exhaust born other sourc89.

Heur inputrule mams the amount or heat input (in mrn3tu) divided by unit operating time (in hr] or, with regard i o a spedlie he\, thn amaunl othcat Snput 8tkibuted to tho fuel {in mmBtU) divided by tho unit opemting tim~ tin hr] during rvhfch tho unil combusts tho Fuel.

contmctuoiarmngernent maam a unit participalfoa power sales agreornent under which a utrIiLy or industrial customer rcswes, or i s sntitlad to mmIve, a spcdfiodamaunt ar parcentgo of nameplate capacity and assPclat~donnw~araledbyany specifiedunit and pays its proportional amount of achunit's lob1 aft;, pursuant to a contract:

1.11 Fm the Efn of tho unit; (21 For a cumulative term of nn less

than 30 y m s , induding wntmts that p m i t an ellpctlon for early t~nninatlon; or

(31 Fma pmiod no lass than 25 years Or70 pment nftha oeonomicnsehl Iifa nf th8 unit dotermined 11s ofthe tima thn unit is built, with option riEhts 10 purehaso ormli3asasoma poriiDn ofthe namnpfafa mpacity and assodated energy genonted by &e unit at the flnd of tho p5riad

hfuximurn des@r heat input mea~s , starting from tho initid installettion o€n

m m u l t i m o i or th~gms~ ~ i o r i r i c ~ i u o

ZiJwJ-the-unit, firm p o w r

unit. ti;8 maximum amount OrFuEi por hourtin Btulhr] tbat B unit Is capabln of combusting on a steady state basis as

unit, or, starting from tha complationaf any subsquozit physical change in tho unit resulting in a doueasa in tha maximumamount of hue1 pcrhour tin Btdhrl thato unit is capable OF

spdficdby &8 mWUbdmT Of thn

25366 Fedcral Ile@tar/VoL 70, No. glfThursday, May 12, 20[15/Rules and Regulations 1

combusting on a slaady state basls, such deeraased m m h u m amount as sppciilicd by ihho p m ~ n conducting Lhn ph st@ chonae.

&onrlmingsyslcm means any monf loring systnm ff iat mcats tho requimmcnts ofsubpart HHH or h i s part. including a corrthuous omksians monitoringsystem, an ahnntive monitoring system, or an oxcopted monltoting systnm under part 75 dtliis &a lor.

hfrast slringent Slde ur Fedeml S a missions Ilmifatbn meam, with regard to a unit, !he lowest SO; amlssions IimhtitiPn (in t a m of Iblmm3tuI illat i s applicable to tha unit under Stat0 ar FcdoraI law, Fogardlass olihoavemging period Io rvhkh the emissians IlrnIiation appfios.

Nameplate wpocily rnoaas, slating fmrn the iaithl IadallatIon of a genontor, th mwImum olectrlcal nonorating output (in M o l that tho gauaator i s mpabledpradudng una steady slate bask and during cuntinutrus upamtion (when na t rwslrictcd by soasanal or other derating4 as spee1fied by h a manufacturer af t h ~ goncntor or, s~arting from the completfoa of any subsequent physicat change in the p a r a t o r ra5ulting in FIII increaso in maximum dectriwl @riarating output [in M w n ] that thageamtor is q a b l a or producing nn I slaady staia basis and during continuous opmtloa (when not

demtings), such Inmasodmaximum amouot as qmeihdby tho person conducting t he physical change.

Opembr mmns any pmon who oporatas, wntmls, or supewises a CAIR SOzunit nr a (IAIR SO1 sonrco andshall indudo, but not he h i t e d to, any holding company, nWty systnm, or plant manager ofsueh a unit or sourm

reS~&d by SOXOl la l Or Other

OWllf?rmBanS any O f f h P f O l l O W i a

air pollution contmI igency, local epency, othnr Slate agency. Dr n h r agency authorlad by the Admhishtoc to issue o r m v h pennits to meot the requirements OF tbo CMR SO5 ‘hiding Program In accordanen with subpart CCC o l this part or, if no such agemy has bsnn so authorized. fhs

mcans 33 pereont ofauriit‘smixirnum des n heat Input, divlded by3,413 S~LI%~€I, dividadby I , O O O kWhlMwh, and m$tiplSa d br 8 3 6 0 hrlyr.

Rcceive wr tecmpt uf moms, when refarring to tha permllthg authority or tho AdmMstmtar, to come Into possession ofa document, information, or corrcspondenca Iwholbcraont in hard copy or by nutkorizad elecbnnic transmlssian], as Indicated in 8tl ofieial correspoadenm lug, or by B notalion mada on the document, infbnnatian, or conespondnnce, by the pormitliag authority or the Administrator in ths regular course oEbusinsss.

Rcmrdalfon, recurd, or recorded m8PM1 W i l h regard t0 C A n so2 ullawnnccs, the movemanl of CAIRSOz dhwances by tho Adminishtur into or

System accounls, forpurposus of aUcicationl WansTer, or deduettun..

Reference method moans my &rei3 t ~ s t method of sampling and analyzing f a r m air pollutant 8s spedfied in 5 75.22 of this eh;lp!w,

Repowered means, wfthrogard to a unit, repfacornant of a catf imd boiler with one nf the fdowing cod-fired tacbnoIogies at ~ ~ ~ S I U B S O U E ~ as the Cd-fited bd1W {I] AtmospherP or pmssurized

fluldfrcd bad combustion; (21 fntngmtadgasifimtion combiied

(31 Magnetoh &dynamics: t41 Direct adindirect mal-fmd

between CAIR SOz Allowance ’hckIng

cycle:

sImul~mmly With im roved h i l e t or

signifiwntly p a t o r wade r8dueLIoa relative to tho pnrformnca of tadhnohgy in widaspread mmrnorcid us0 as ofJ8Uuary 1.2005,

allowance, tha uniquo idontiff cation number assigned to each CMlt Sua allatvance by h e Administrator.

Seguenlial use of energy means: (1) For a tuppingqclc cogonoration

unit. he USB of rejocthaat h r n elecin’city pradudbn in a ttseful tbemtal onergy applieatloa or p r o w or

[2) For a bottornIngqch coganadun

thcnnal onergy application or process in elactrieily pmdtittton.

strudm, or installations Iomtad in onn nr mom contiguous or adjacent propmitiesunder common control of thn same person crp8rSoas. Forp~rposos of section SOZ(c] oftha Chan AirAct. a “SOU~W,” includhg a ‘’source” with multiplo units,sbaBke considerad a single “hcilitJI.”

Sfufe mean5 ana or the Stat= or the DLMd ofColumbia that adopts Ihe CARSOlTradlng Progmm ursumntta

Submit arsiwerneans to sand or tmnsmit a document, information, or cotrespondnnca 1a tha person spedfiod In nmrdanco with UIO e p p h b b razulatfan:

goneration e f h f e n g an ?I whh

Serin1 numbermcans, fora ChTR SOt

udt, fkP us0 DfrejPCt haat from usorul

SUUrcemeanS dl buildings,

gs1.1z.r [a)[d or (21 ofthis %apter.

deadin; shall be datamind by tho data af dispatch, tmnsmission, or ma1UnE andnot the datn ohcelpt.

Ti&Vapemtingpmit means a p c d t isrmcdundetthleV of the Clam AirActand part70 or part 71 af this chnpier. Title V apemtingpcnnit ~egt laf ipns

means thn mgulatIons fhat the Adminkbutor has approved or ismod as mesting &a requimments oftitlo V of thu CJem Air ~ c t end part 70 ur 71 or this chapter. Tun means 2,000 pounds. For the

putpmo of detemining compliance wlth tbs [=AIR emissions Itmltalion, tatd tons olsuhrdbxide emissions far a control period shall ba olculatcd as Lbe sum of all rucorded hourly amissfons [or Lhe m w aquivaIent of the remrded hurly amission ratos) in accordance with subpart HBA of this part, but with anyremainiw h a i o n of a tonoqud to orgmaler than 0.50 tans

Federal RegistcrlYoL 70, No. gl/Thursday, May 32, 2005/Rdes and Regdaffons 25367

remahing fmetlon of a ton 1 0 s than 0350 ions deemed to equal z m tons.

Topping-cycle w&enemlion unit means a coganeration unft in which the enorgy input to Ihe unit i s fist usnd to produrn useful power. incIuding alechicity, and at ~~astsomo of the rojecl h ~ a t horn tho elauricity production is then usad to prnvide useful thermal energy. ~~~~~enewfnputmeans.w~lhregaFd

tu a wgonomtionunlt, tab1 enaw of all forms supplod to I ~ R cogenoration unit, excluding enPrgy praducod by thn cogeneration unit Itsdf,

Tutd mew miput means, with regard 10 n wgmnorntIon unit, the sum ofusabl powsrand wohl thormal nnnrgy produced by tho caggenemtioa unit

Unit moms a stalionary. fossil-Iuol- fircd hoilor or combustton hltbIns or othpr stathnary. f ~ ~ ~ i l - f u m i ~ d comhustion davica.

Um*t opmting doy means 8 calondar day in whidh a unit ambusts En hd.

Unii opmtfng hmr or Aour &nil upcmtion moa= an hour in which a udt combusts m y fuel.

Uscjdpower m a , with regard to 8 qeaatatinn unit , alemiciiy or methanid ongtgy mnda avnilnble for ~5o,omludfnganysuch~ew11sadin tha powor produclfon proms [which process includes, but h not lirniied to, any on-sib pmcassing or batmoot of fuel combustrd at t h o unit andany on- silecmtssion mntroIs1. Use ul Lhermd energy maafls, with

regar d io a cageneration unjt, thnmal

eTIK%i kilable to an Indusirial or cummnrcial process (nal B oww production process), axcIu%ng my hmf conbind in condensatereturn o r makeup water;

(21 Used In a heat application [E&, space heating or domastk hot wator hmiin k m

(3) 6 n d in aspaco conllng application [i.c., thermal energy usedby an ab5orption chilIer],

Ufflitypower dislribution system means t h ~ portion oran almtxiuty~d owned or opamtud by a utility and dcdieatod to delivering electricity to

596203 Measummants, abbrwrlatkltts, and asronyms,

Measurements, abbrnviatlons, and amayms used in thSs pnrt am delinod asIo~lnws: Btu-British thermal unk C O m h o n dioxida N O ~ i t m g s n oxidns, W O U r . kW-Mowatt dectrienl, kWh-kilawaH hour.

CUlOm3rS.

mrnBiu-mi~lIon Btu. MWc-rnBgawatt ulectricat MtVh-mcgawatt hour. OroXy&n. pm-parfs per milIion. b-pottnd.

s m t a n d s r d mbIc lent per hour, S&-suIfut dioxide. H*O-Watm. y-year. §96204 Applleabltlly~

Tho following units in a Shta shnll bo CAD7 SO1 units, and any suurce thnt indudes o m or mom such units skll be a CAE SO2 source. subject to the requiroments of this snbpart and sub arts BBB through HHH olthis part: (37 Empt BS prodded in paragraph

bl ofthis smtion, a stationary. fossil- fuel-fired boiler or stationary, f a d - fud-fired w m h t i o n turbine sowingat any h a , ainca tho starl-up of ihe unit's combustton chambar, a gemrator with nameplate capacity of morn than zs MWu producing electricity fnrsala fi] For a unit that qualifm as a

togenaratlon unit during the f2-montb piadstarting on be date the unit first produces declricity and conlinuw to qualify ES a cqenaratim unit, a cogenomtian unit s w i n g at any time a gcnontor with nameple~e capacity of mom than 25 MWe and supplying in m y calendar ymr mom than nns.Wd ortho unit's potontid electric aukput capacity or 219,000 MWh, wbichsvari$ groator, to myutiIitypower distribution system for sale. Ila unit qualifies as a cogeneralion unit duriq the ~ ~ - m o a t h pmiod starting on f h ~ date tbo unit firsf fmduws elecMcltybut subsequently no anger qualifies asa cogeneration unit,

&e unit shall be subjaa to paqreph [a1 of this seetion starting on the daym which the d t fmt no longer qualies as a cogenamtion unit. gSS205 Reared UnkexemptIon.

pannmentIy retired and 1s not ii CAIR Sox o bin unit under subpart IlI of this part s h l ha oxernpt fmm the CAIR S G Trading PmgFam, Dxmpt k r tbe provisions of tht s d o n , 5 96.202, 5 96,203,s 96204, 6 96.2nG[cl[4] through [8), sSS.207, and subparts FFF and GGG of this part.

0) Tho 8xemptim under pamgmph [al[ll of this sectton shall becoma sfloctiva &e day on which the ChIR S G unit k pemamntly retimd Withrn 30 days dihe uniPs peFmanent ratiroment, tho CAFIldesIgnated rapmnbtivo s h d submit B stfitomant ta the pennittinp, outhoriiy otherwho responsible for administering m y GMR parmil for h e unitand shdI submit B mpy O f t b stabmant to the Administrator.Thn

(a)lll Any CAIRSOzunit thnt 1s

slalomant shnll state, Sn B bmat presuilrnd by tho permIiting authoriL

P specific date und will comply with tho raquimments dpaqraph @I oFthis

[31 ARsrromip! of tho statsmont under paparagraph [allz] d t h i s section, the permitting aulhntity wiH amend any permit under subpart mc of this part wvaring the s o u ~ c i at which tho unf t i5 Iomtod to add tha pmvi5ions and requImmnts ~f h e exompdon undar psm p k (E][ll a!$ [b) or thiscclion.

d$~ecialprnvrsronr [I] A unit cxompt under paragraph (a) ofthis seciion shall not omit an sulfur dioxide,startinE nn the &t, tkat the exom tlon rakes effect

date &ha rcwrds ma mated. thn uwners and operators of a unit exarapt under paragraph tal of lhk socdon sbdl mlnin at thucource tbnt incIudw the unit, recncrrds demonstrating tbat tho unit is parmanendy rothad. The b-yompdod for koopiag records may bo exlendod for w t i o , at any time b t l h tho an& aftlro period. in wltlng by the p8dtting autbodty or the Administrator, Tho ownurs and opom!ors bmr tllo burden o€ prnofthat the unit is pmnancntly rotired. [3] Tbe ownos and opnntors and. to

Lho oxtent applicable, tho CAR designated rapmcatativivs afa unit mompt under paragraph la) of this section shall comply with tho roquiramonts o€ thu CAlR S a T n d i ~ Progmm coonceming dl parfods for which tho oxemption is not in oflect. wan if such requiramonts mise, nr must bn complied with, afisr tha exemption takes ftKecl.

(41 A unit exempt undor ptrmgnph tnl of this section andlocated at a s o u m that islequlred, D r but For this exemption would bo ~ e q u h d . tp have a ti!ln V apemting parnit shall no! a m e oparatrun unlaso the CAR designated mprescntatlve afthe sowco submfts a ~01~plat~taC1cIR permlt applicatiaa under5 96,222 forth^ unit not 1053 than 18 mnnths (or such lesser h n pmvidod by tho pml l thg nuthorlty) bPfOE th8 later of January 1,2010 or tho date on which theunftresumes ~ p p e m f f ~ ~ {SI On the earlfer of the following

dales, B unit a x m t undm parapph (a1 af this soctian sh& loso its exemptiow

(I] Tho dale on which the c m designated ropr~sontativesubmits a C~pmdlapplIeationfur tba unil

"$%? B ate on which fha CAE2 desigmtod xopresontative is required rrrrderpasagtaph [bl[4) or this sedion to submit a CAR pcrmit applleathn for tho unlt; Or

that h u n i t was pormanPntIy retiro2;n

SBClfOn.

(2) EoPt 8 period aF5 years from the

Faph M 4 1 of thksodon;