The EPA Administrator, Gina McCarthy, signed the following 

notice on 9/7/2016, and EPA is submitting it for publication in 

the Federal Register (FR). While we have taken steps to ensure 

the accuracy of this Internet version of the rule, it is not the 

official version of the rule. Please refer to the official 

version in a forthcoming FR publication, which will appear on 

the Government Printing Office’s FDSys website 

(http://gpo.gov/fdsys/search/home.action) and on Regulations.gov

(http://www.regulations.gov) in Docket No. EPA-HQ-OAR-2015-0500. 

Once the official version of this document is published in the 

FR, this version will be removed from the Internet and replaced 

with a link to the official version.

1

6560-50-P

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 52, 78, and 97 

[EPA-HQ-OAR-2015-0500; FRL-9950-30-OAR]

RIN 2060-AS05

Cross-State Air Pollution Rule Update for the 2008 Ozone NAAQS

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

________________________________________________________________

SUMMARY: The Environmental Protection Agency (EPA)

published the original Cross-State Air Pollution Rule (original 

CSAPR) on August 8, 2011, to address interstate transport of 

ozone pollution under the 1997 ozone National Ambient Air 

Quality Standards (NAAQS) and interstate transport of fine 

particulate matter (PM2.5) pollution under the 1997 and 2006 PM2.5

NAAQS. The EPA is finalizing this Cross-State Air Pollution Rule 

Update (CSAPR Update) to address interstate transport of ozone 

pollution with respect to the 2008 ozone NAAQS. This final rule 

will benefit human health and welfare by reducing ground-level 
2

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

ozone pollution. In particular, it will reduce ozone season 

emissions of oxides of nitrogen (NOX) in 22 eastern states that

can be transported downwind as NOX or, after transformation in 

the atmosphere, as ozone, and can negatively affect air quality 

and public health in downwind areas. 

For these 22 eastern states, the EPA is issuing Federal 

Implementation Plans (FIPs) that generally provide updated CSAPR 

NOX ozone season emission budgets for the electric generating 

units (EGUs) within these states, and that implement these 

budgets via modifications to the CSAPR NOX ozone season allowance 

trading program that was established under the original CSAPR. 

The EPA is finalizing these new or revised FIP requirements only

for certain states that have failed to submit an approvable

State Implementation Plan (SIP) addressing interstate emission

transport for the 2008 ozone NAAQS. The FIPs require affected 

EGUs in each covered state to reduce emissions to comply with 

program requirements beginning with the 2017 ozone season (May 1 

through September 30). This final rule partially addresses the 

EPA’s obligation under the Clean Air Act to promulgate FIPs to 

address interstate emission transport for the 2008 ozone NAAQS. 

In conjunction with other federal and state actions to reduce 

ozone pollution, these requirements will assist downwind states 
3

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

in the eastern United States with attaining and maintaining the 

2008 ozone NAAQS.

This CSAPR Update also is intended to address the July 28, 

2015 remand by the United States Court of Appeals for the 

District of Columbia Circuit of certain states’ original CSAPR 

phase 2 ozone season NOX emission budgets. In addition, this rule

updates the status of certain states’ outstanding interstate 

ozone transport obligations with respect to the 1997 ozone 

NAAQS, for which the original CSAPR provided a partial remedy.

The EPA proposed and solicited comment on this update to 

the original CSAPR on December 3, 2015. This final rule is 

informed by comments received on the proposal and is responsive 

to this public feedback.

DATES: This final rule is effective on [insert date 60 days 

after date of publication in the Federal Register].

ADDRESSES: The EPA has established a docket for this action 

under Docket ID No. EPA-HQ-OAR-2015-0500. All documents in the 

docket are listed on the www.regulations.gov website. Although 

listed in the index, some information is not publicly available, 

e.g., CBI or other information whose disclosure is restricted by 

statute. Certain other material, such as copyrighted material, 

is not placed on the Internet and will be publicly available 
4

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

only in hard copy form. Publicly available docket materials are 

available either electronically through www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mr. David Risley, Clean Air 

Markets Division, Office of Atmospheric Programs (Mail Code 

6204M), Environmental Protection Agency, 1200 Pennsylvania 

Avenue NW, Washington, DC 20460; telephone number: (202) 343-

9177; email address: Risley.David@epa.gov.

SUPPLEMENTARY INFORMATION: 

Preamble Glossary of Terms and Abbreviations

The following are abbreviations of terms used in the 

preamble.

CAA or Act Clean Air Act

CAIR Clean Air Interstate Rule

CAMx Comprehensive Air Quality Model with Extensions

CBI Confidential Business Information

CEMS Continuous Emission Monitoring Systems

CFR Code of Federal Regulations

CSAPR Cross-State Air Pollution Rule

EGU Electric Generating Unit

EPA U.S. Environmental Protection Agency

FIP Federal Implementation Plan

FR Federal Register

GWh Gigawatt hours
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This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

ICR Information Collection Request

IPM Integrated Planning Model

Km Kilometer

lb/mmBtu Pounds per Million British Thermal Unit

LNB Low-NOx Burners

mmBtu Million British Thermal Unit

MOVES Motor Vehicle Emission Simulator

NAAQS National Ambient Air Quality Standard

NBP NOX Budget Trading Program

NEI National Emission Inventory

NOX Nitrogen Oxides

NODA Notice of Data Availability

NSPS New Source Performance Standard

OFA Overfire Air

PM2.5 Fine Particulate Matter

PPB Parts Per Billion

RIA Regulatory Impact Analysis

SC-CO2 Social Cost of Carbon

SCR Selective Catalytic Reduction

SIP State Implementation Plan

SMOKE Sparse Matrix Operator Kernel Emissions

SNCR Selective Non-catalytic Reduction

SO2 Sulfur Dioxide
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This document is a prepublication version, signed by EPA Administrator, Gina 

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version, but it is not the official version.

TSD Technical Support Document

Table of Contents

I. Executive Summary

A. Purpose of Regulatory Action

B. Major Provisions

C. Benefits and Costs

II. General Information

A. To Whom Does this Final Action Apply

III. Legal Authority

A. The EPA’s Statutory Authority for the Final Rule

B. FIP Authority for Each State Covered by the Final Rule

IV. Air Quality Issues Addressed and Overall Approach for the 

Final Rule

A. The Interstate Transport Challenge under the 2008 

Ozone Standard

1. Background on the Nature of the Interstate Ozone

Transport Problem

2. Events Affecting Application of the Good Neighbor 

Provision for the 2008 Ozone NAAQS

B. Approach to Address Ozone Transport under the 2008 

Ozone NAAQS via FIPS

1. Requiring Emission Reductions from Upwind States

2. Focusing on 2017 for Analysis and Implementation

3. The CSAPR Framework

4. Partial versus Full Resolution of Transport 

Obligation

5. Why Focus on Eastern States

6. Short-Term NOX Emissions

C. Responding to the Remand of CSAPR NOX Ozone Season 

Emission Budgets

D. Addressing Outstanding Transport Obligations for the 

1997 Ozone NAAQS

V. Analyzing Downwind Air Quality and Upwind State 

Contributions

A. Overview of Air Quality Modeling Platform

B. Emission Inventories

1. Foundation Emission Inventory Data Sets

2. Development of Emission Inventories for EGUs

3. Development of Emission Inventories for Non-EGU 

Point Sources
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version, but it is not the official version.

4. Development of Emission Inventories for Onroad 

Mobile Sources

5. Development of Emission Inventories for Commercial 

Marine Category 3 (Vessel) 

6. Development of Emission Inventories for Other 

Nonroad Mobile Sources

7. Development of Emission Inventories for Nonpoint 

Sources

C. Definition of Nonattainment and Maintenance Receptors

D. Air Quality Modeling to Identify Nonattainment and 

Maintenance Receptors

E. Pollutant Transport from Upwind States

1. Air Quality Modeling to Quantify Upwind State 

Contributions

2. Application of Screening Threshold

3. Update to EGU Modeling for Quantifying Emission 

Budgets

VI. Quantifying Upwind State EGU NOX Emission Budgets to 

Reduce Interstate Ozone Transport for the 2008 NAAQS

A. Introduction

B. Levels of Uniform Control Stringency 

1. EGU NOX Mitigation Strategies

2. Non-EGU NOX Mitigation Strategies and Feasibility 

for the 2017 Ozone Season

3. Summary of EGU Uniform Control Stringency 

Represented by Marginal Cost of Reduction (dollar 

per ton)

C. EGU NOX Reductions and Corresponding Emission Budgets

1. Evaluating EGU NOX Reduction Potential

2. Quantifying Emission Budgets

D. Multi-factor Test Considering Costs, EGU NOX

Reductions, and Downwind Air Quality Impacts

VII. Implementation Using the Existing CSAPR NOX Ozone Season 

Allowance Trading Program and Relationship to Other Rules

A. Introduction

B. New and Revised FIPs

C. Updates to CSAPR NOX Ozone Season Trading Program 

Requirements

1. Relationship of Allowances and Compliance for CSAPR 

Update States and States with Ongoing Original 

CSAPR Requirements

2. Use of Banked Vintage 2015 and 2016 CSAPR NOX Ozone 

Season Trading Program Allowances for Compliance in 

CSAPR Update States

D. Feasibility of Compliance
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

E. FIP Requirements and Key Elements of the CSAPR Trading 

Programs

1. Applicability

2. State Budgets

3. Allocations of Emission Allowances 

4. Variability Limits, Assurance Levels, and Penalties

5. Compliance Deadlines

6. Monitoring and Reporting and the Allowance 

Management System

7. Recordation of Allowances

F. Submitting a SIP

1. 2018 SIP Option

2. 2019 and beyond SIP Option

3. SIP Revisions that Do Not Use The CSAPR Trading 

Program

4. Submitting a SIP to Participate in CSAPR for States 

Not Included in this Rule

G. Title V Permitting

H. Relationship to Other Emission Trading and Ozone 

Transport Programs

1. Interactions with Existing CSAPR Annual Programs, 

Title IV Acid Rain Program, NOX SIP Call, Section 

176A Petition, and Other State Implementation Plans

2. Other Federal Rulemakings

VIII. Costs, Benefits, and Other Impacts of the Final Rule

IX. Summary of Changes to the Regulatory Text for the CSAPR 

FIPs and CSAPR Trading Program 

X. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review 

and Executive Order 13563: Improving Regulation and 

Regulatory Review 

B. Paperwork Reduction Act (PRA)

C. Regulatory Flexibility Act (RFA)

D. Unfunded Mandates Reform Act (UMRA)

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination 

with Indian Tribal Governments

G. Executive Order 13045: Protection of Children from 

Environmental Health Risks and Safety Risks 

H. Executive Order 13211: Actions Concerning Regulations 

That Significantly Affect Energy Supply, Distribution 

or Use

I. National Technology Transfer and Advancement Act

(NTTAA)
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

J. Executive Order 12898: Federal Actions to Address 

Environmental Justice in Minority Populations and LowIncome Populations

K. Congressional Review Act (CRA)

L. Judicial Review and Determinations under Section 

307(b)(1) and (d)

I. Executive Summary

The EPA published the original Cross-State Air Pollution 

Rule (original CSAPR)1 on August 8, 2011 to address the 

interstate transport of emissions with respect to the 1997 ozone 

National Ambient Air Quality Standards (NAAQS) and the 1997 and 

2006 fine particulate matter (PM2.5) NAAQS.2 The EPA is finalizing 

this Cross-State Air Pollution Rule Update for the 2008 Ozone 

NAAQS (CSAPR Update) to address the interstate transport of 

emissions with respect to the 2008 ozone NAAQS. The 2008 ozone 

NAAQS is an 8-hour standard that was set at 75 parts per billion 

(ppb).3 The EPA proposed the CSAPR Update with respect to the 

2008 ozone NAAQS on December 3, 2015 (80 FR 75706), and 

solicited comment on that action. The EPA provided an additional 

opportunity to comment on the air quality modeling platform and 

air quality modeling results that were used for the proposed 

CSAPR Update, through an August 4, 2015 Notice of Data 

 

1 See 76 FR 48208 (August 8, 2011).

2 The original CSAPR did not evaluate the 2008 ozone standard because the 2008 

ozone NAAQS was under reconsideration during the analytic work for the rule. 

3 See 73 FR 16436 (March 27, 2008).
10

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Availability (NODA) (80 FR 46271) requesting comment on these 

data. This final rule is informed by comments received on the

NODA and proposed CSAPR Update. This CSAPR Update also is 

intended to address the remand by the United States Court of 

Appeals for the District of Columbia Circuit of certain states’ 

original CSAPR NOX ozone season phase 2 emission budgets. 

Additionally, this rule updates the status of outstanding 

interstate ozone transport obligations for states that the 

original CSAPR provided a partial remedy with respect to the 

1997 ozone NAAQS.

A. Purpose of Regulatory Action

The purpose of this rulemaking is to protect public health 

and welfare by reducing interstate emission transport that 

significantly contributes to nonattainment, or interferes with 

maintenance, of the 2008 ozone NAAQS in the eastern U.S. Groundlevel ozone causes a variety of negative effects on human 

health, vegetation, and ecosystems. In humans, acute and chronic 

exposure to ozone is associated with premature mortality and a 

number of morbidity effects, such as asthma exacerbation. Ozone 

exposure can also negatively impact ecosystems, for example, by 

limiting tree growth.

Studies have established that ozone occurs on a regional 

scale (i.e., hundreds of miles) over much of the eastern U.S., 
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

with elevated concentrations occurring in rural as well as 

metropolitan areas.4,5 To reduce this regional-scale ozone 

transport, assessments of ozone control approaches have 

concluded that NOX control strategies are effective. Further, 

studies have found that EGU NOX emission reductions can be 

effective in reducing ozone pollution -- specifically 8-hour 

peak concentrations, which is the form of the 2008 ozone 

standard. For example, studies have shown EGU NOX reductions 

achieved under one of the EPA’s prior interstate transport 

rulemakings known as the NOX SIP Call6 were effective in reducing 

8-hour peak ozone concentrations during the ozone season.7

Clean Air Act (CAA or the Act) section 110(a)(2)(D)(i)(I), 

sometimes called the “good neighbor provision,” requires states8

to prohibit emissions that will contribute significantly to 

nonattainment or interfere with maintenance in any other state 

with respect to any primary or secondary NAAQS. The statute 

vests states with the primary responsibility to address 

 

4 Bergin, M.S. et. al. (2007) Regional air quality: local and interstate 

impacts of NOx and SO2 emissions on ozone and fine particulate matter in the 

eastern United States. Environmental Sci & Tech. 41: 4677-4689.

5 Liao, K. et. al. (2013) Impacts of interstate transport of pollutants on 

high ozone events over the Mid-Atlantic United States. Atmospheric 

Environment 84, 100-112.

6 63 FR 57356, October 27, 1998

7 Gégo et. al. (2007) Observation-based assessment of the impact of nitrogen 

oxides emissions reductions on O3 air quality over the eastern United States. 

J. of Applied Meteorology and Climatology 46: 994-1008.

8 The term “state” has the same meaning as provided in CAA section 302(d) 

which specifically includes the District of Columbia.
12

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

interstate emission transport through the development of good 

neighbor State Implementation Plans (SIPs). The EPA supports 

state efforts to submit good neighbor SIPs for the 2008 ozone 

NAAQS and has shared information with states to facilitate such 

SIP submittals. However, the CAA also requires the EPA to fill a 

backstop role by issuing Federal Implementation Plans (FIPs) 

where states fail to submit good neighbor SIPs or the EPA 

disapproves a submitted good neighbor SIP.

On July 13, 2015, the EPA published a rule finding that 24 

states9 failed to make complete submissions that address the 

requirements of section 110(a)(2)(D)(i)(I) related to the 

interstate transport of pollution as to the 2008 ozone NAAQS. 

See 80 FR 39961 (July 13, 2015) (effective August 12, 2015). 

This CSAPR Update finalizes FIPs for 13 of these states 

(Alabama, Arkansas, Illinois, Iowa, Kansas, Michigan, 

Mississippi, Missouri, Oklahoma, Pennsylvania, Tennessee, 

Virginia, and West Virginia). On June 15, 2016 and July 20, 

2016, the EPA published additional rules finding that New Jersey 

and Maryland, respectively, also failed to submit transport SIPs 

for the 2008 ozone NAAQS. See 81 FR 38963 (June 15, 2016) 

 

9 The states included in this finding of failure to submit are: Alabama, 

Arkansas, California, Florida, Georgia, Illinois, Iowa, Kansas, Maine, 

Massachusetts, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, New 

Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, 

Vermont, Virginia, and West Virginia.
13

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(effective July 15, 2016); 81 FR 47040 (July 20, 2016) 

(Maryland, effective August 19, 2016). This final CSAPR Update 

also finalizes FIPs addressing the good neighbor provision for 

these two states. Additionally, the EPA is finalizing FIPs for 

seven states for which it finalized disapproval of the states’ 

good neighbor SIPs for the 2008 ozone NAAQS: Indiana, Kentucky,

Louisiana, New York, Ohio, Texas, and Wisconsin. The FIPs being 

promulgated partially address the EPA’s outstanding CAA 

obligations to prohibit interstate transport of air pollution 

which will contribute significantly to nonattainment in, or 

interfere with maintenance by, any other state with respect to 

the 2008 ozone NAAQS. The EPA also determines that it has fully 

satisfied its FIP obligation as to 9 states (Florida, Georgia, 

Maine, Massachusetts, Minnesota, New Hampshire, North Carolina, 

South Carolina, and Vermont), which the EPA has determined do 

not contribute significantly to nonattainment in, or interfere 

with maintenance by, any other state with respect to the 2008 

ozone NAAQS.

The EPA is finalizing a FIP for each of the 22 states

subject to this rule, having found that they failed to submit a 

complete good neighbor SIP (15 states) or having issued a final 

rule disapproving their good neighbor SIP (7 states). However, 

even after these FIPs take effect, any state included in this 
14

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

rule can submit a good neighbor SIP at any time that, if 

approved by the EPA, could replace the FIP for that state. 

Additionally, CSAPR provides states with the option to submit 

abbreviated SIPs to customize the methodology for allocating 

CSAPR NOX ozone season allowances while participating in the 

ozone season trading program and the EPA is extending that 

approach in this rule.

The 22 states for which the EPA is promulgating FIPs to 

reduce interstate ozone transport as to the 2008 ozone NAAQS are 

listed in Table I.A-1. 

Table I.A-1 List of 22 Covered States for the 2008 8-Hour 

Ozone NAAQS

State Name

Alabama

Arkansas

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maryland

Michigan

Mississippi

Missouri

New Jersey

New York

Ohio

Oklahoma

Pennsylvania
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version, but it is not the official version.

Tennessee

Texas

Virginia

West Virginia

Wisconsin

The final CSAPR Update addresses collective contributions 

of ozone pollution from states in the eastern U.S. and builds on 

previous eastern-focused efforts to address collective 

contributions to interstate transport, including the NOX SIP 

Call, the Clean Air Interstate Rule,10 and the original CSAPR 

rules. The EPA is not finalizing FIPs to address interstate 

emission transport for western states, where there may be 

additional factors to consider in the EPA’s and state’s 

evaluations.

The EPA finds, in the final air quality modeling on which 

this rule is based, one state for which the EPA proposed a FIP 

in the proposed CSAPR Update rule, North Carolina, is not linked 

to any downwind nonattainment or maintenance receptors. 

Therefore, the EPA is not finalizing a FIP for North Carolina.

For 14 of the eastern states evaluated in this rule

(Connecticut, Florida, Georgia, Maine, Massachusetts, Minnesota, 

Nebraska, New Hampshire, North Carolina, North Dakota, Rhode 

Island, South Carolina, South Dakota, and Vermont), the EPA has 

 

10 70 FR 25162 (May 12, 2005).
16

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

determined that emissions from those states do not significantly 

contribute to nonattainment or interfere with maintenance of the 

2008 ozone NAAQS in downwind states. Accordingly, the EPA has 

determined that it need not require further emission reductions 

from sources in these states to address the good neighbor 

provision as to the 2008 ozone NAAQS. 

Of the 22 states covered in this CSAPR Update, 21 states11

have original CSAPR NOX ozone season FIP requirements with 

respect to the 1997 ozone NAAQS. One state, Kansas, has newly 

added CSAPR NOX ozone season FIP requirements in this action. For 

the 22 states affected by one of the FIPs finalized in this 

action, the EPA is promulgating new FIPs with EGU NOX ozone 

season emission budgets to reduce interstate transport for the 

2008 ozone NAAQS.

One state, Georgia, has an ongoing original CSAPR NOX ozone 

season FIP requirement with respect to the 1997 ozone NAAQS, but 

the EPA has found that is does not contribute to interstate 

transport with respect to the 2008 ozone NAAQS. The EPA did not 

reopen comment on Georgia’s interstate transport obligation with 

respect to the 1997 ozone NAAQS in this rulemaking, so Georgia’s 

 

11 Alabama, Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, 

Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, Oklahoma, 

Pennsylvania, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.
17

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

original CSAPR NOX ozone season requirements (including its 

emission budget) continue unchanged.

In addition to reducing interstate ozone transport with 

respect to the 2008 ozone NAAQS, this rule also addresses the 

status of outstanding interstate ozone transport obligations 

with respect to the 1997 ozone NAAQS. In the original CSAPR, the 

EPA promulgated FIPs for 25 states to address ozone transport 

with respect to the 1997 NAAQS. For 11 of these states,12 the 

original CSAPR rulemakings quantified ozone season NOX emission 

reductions that were not necessarily sufficient to eliminate all 

significant contribution to downwind nonattainment or 

interference with downwind maintenance of the 1997 ozone NAAQS. 

Relying on modeling completed for this final rule, this action 

finds that, with implementation of the original CSAPR NOX ozone 

season emission budgets, emissions from ten of these states no 

longer significantly contribute to downwind nonattainment or 

interference with maintenance for the 1997 ozone NAAQS. The EPA 

further finds that, with implementation of the CSAPR Update NOX

ozone season emission budgets, emissions from these ten states 

also no longer significantly contribute to downwind 

 

12 Alabama, Arkansas, Georgia, Illinois, Indiana, Kentucky, Louisiana, 

Mississippi, Missouri, Tennessee, and Texas. (See CSAPR Final Rule, 76 

FR at 48220, and the CSAPR Supplemental Rule, 76 FR at 80760, December 

27, 2011).
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

nonattainment or interference with maintenance for the 1997 

ozone NAAQS. With respect to Texas, the modeling shows that 

emissions from within the state no longer significantly 

contribute to downwind nonattainment or interference with 

maintenance for the 1997 ozone NAAQS even without implementation 

of the original CSAPR NOX ozone season emission budget.

Accordingly, sources in Texas will no longer be subject to the 

emissions budget calculated to address the 1997 ozone NAAQS. 

However, as described earlier, this rule finalizes a new 

emissions budget for Texas designed to address interstate 

transport with respect to the 2008 ozone NAAQS.

This action is also intended to address the portion of the

July 28, 2015 opinion of the United States Court of Appeals for 

the District of Columbia (D.C. Circuit) remanding without 

vacatur 11 states’ CSAPR phase 2 NOX ozone season emission 

budgets. EME Homer City Generation, L.P., v. EPA, No. 795 F.3d 

118, 129-30, 138 (EME Homer City II). This action promulgates 

new NOX ozone season budgets addressing interstate transport with 

respect to the 2008 ozone NAAQS that take effect in 2017, which 

replace the invalidated phase 2 budgets for 8 states, and also 

removes the remaining three states from the CSAPR NOX ozone 

season trading program as a result of the EPA’s finding that

these three states do not significantly contribute to downwind 
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

nonattainment or interference with maintenance for the 2008 

standard.13

The EPA acknowledges that, in EME Homer City II, the D.C. 

Circuit also remanded without vacatur the CSAPR phase 2 SO2

emission budgets as to four states. 795 F.3d at 129, 138. This 

final rule does not address the remand of these CSAPR phase 2 SO2

annual emission budgets. On June 27, 2016, the EPA released a 

memorandum outlining the agency's approach for responding to the 

D.C. Circuit's July 2015 remand of the CSAPR phase 2 SO2 annual 

emission budgets for Alabama, Georgia, South Carolina and Texas. 

The memorandum can be found at 

https://www3.epa.gov/airtransport/CSAPR/pdfs/CSAPR_SO2_Remand_Me

mo.pdf.

On October 1, 2015, the EPA strengthened the ground-level 

ozone NAAQS, based on extensive scientific evidence about 

ozone’s effects on public health and welfare.14 While reductions 

achieved by this final rule will aid in attainment and 

maintenance of the 2015 standard, the CSAPR Update rule to

reduce interstate emission transport with respect to the 2008 

 

13 The EPA is promulgating new emission budgets that would replace the 

invalidated CSAPR phase 2 NOX ozone season budgets for Iowa, Maryland, 

Michigan, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Texas, 

Virginia, West Virginia, and Wisconsin. The EPA is removing Florida, North 

Carolina, and South Carolina from the CSAPR ozone season NOX trading program.

14 80 FR 65291, October 26, 2015
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version, but it is not the official version.

ozone NAAQS is a separate and distinct regulatory action and is 

not meant to address the CAA’s good neighbor provision with 

respect to the 2015 ozone NAAQS final rule.

The EPA notes that the level of the annual PM2.5 NAAQS was 

also revised after CSAPR was promulgated (78 FR 306, January 15, 

2013). However, this final rule does not address the 2012 PM2.5 

standard.15

B. Major Provisions

To reduce interstate emission transport under the authority 

provided in CAA section 110(a)(2)(D)(i)(I), this rule further 

limits ozone season (May 1 through September 30) NOX emissions 

from electric generating units (EGUs) in 22 eastern states using 

the same framework used by the EPA in developing the original 

CSAPR. The CSAPR framework provides a 4-step process to address 

the requirements of the good neighbor provision for ambient 

ozone or PM2.5 standards: (1) identifying downwind receptors that 

are expected to have problems attaining or maintaining clean air 

standards (i.e., NAAQS); (2) determining which upwind states 

contribute to these identified problems in amounts sufficient to 

“link” them to the downwind air quality problems; (3) for states 

 

15 The EPA issued a memo addressing CAA section 110(a)(2)(D)(i)(I) 

requirements for the 2012 PM2.5 NAAQS, see “Information on the Interstate 

Transport ‘Good Neighbor’ Provision for the 2012 Fine Particulate Matter 

National Ambient Air Quality Standards under Clean Air Act section 

110(a)(2)(D)(i)(I),“ March 17, 2016.
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

linked to downwind air quality problems, identifying upwind 

emissions that significantly contribute to downwind 

nonattainment or interfere with downwind maintenance of a 

standard; and (4) for states that are found to have emissions 

that significantly contribute to nonattainment or interfere with 

maintenance of the NAAQS downwind, reducing the identified 

upwind emissions via regional emissions allowance trading 

programs. Each time the relevant NAAQS are revised, this process 

can be applied for the new NAAQS. In this final action, the EPA 

applies this 4-step CSAPR framework to update CSAPR with respect 

to the 2008 ozone NAAQS.

The EPA is aligning implementation of this rule with 

relevant attainment dates for the 2008 ozone NAAQS, as required 

by the D.C. Circuit’s decision in North Carolina v. EPA.16 The 

EPA’s final 2008 Ozone NAAQS SIP Requirements Rule17 established 

the attainment deadline of July 20, 2018 for ozone nonattainment 

areas currently designated as Moderate. Because the attainment 

date falls during the 2018 ozone season, the 2017 ozone season 

will be the last full season from which data can be used to 

determine attainment of the NAAQS by the July 20, 2018

 

16 531 F.3d 896, 911-12 (D.C. Cir. 2008) (holding that the EPA must 

coordinate interstate transport compliance deadlines with downwind 

attainment deadlines).

17 80 FR 12264, 12268; 40 CFR 51.1103.
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version, but it is not the official version.

attainment date. Therefore, consistent with the court’s 

instruction in North Carolina, the EPA establishes emission 

budgets and implementation of these emission budgets starting 

with the 2017 ozone season. 

In order to apply the first and second steps of the CSAPR 

4-step framework to interstate transport for the 2008 ozone 

NAAQS, the EPA used air quality modeling to project ozone 

concentrations at air quality monitoring sites to 2017. The EPA 

updated this modeling for the final rule, using the most current 

complete dataset available, taking into account comments 

submitted on the August 2015 Air Quality Modeling NODA and on 

the CSAPR Update rule proposal. For the final rule, the EPA 

evaluated modeling projections for air quality monitoring sites 

and considered current ozone monitoring data at these sites to 

identify receptors that are anticipated to have problems 

attaining or maintaining the 2008 ozone NAAQS. The EPA then uses 

air quality modeling to assess contributions from upwind states 

to these downwind receptors and evaluates these contributions 

relative to a screening threshold of 1 percent of the NAAQS. 

States with contributions that equal or exceed 1 percent of the 

NAAQS are identified as warranting further analysis for 

significant contribution to nonattainment or interference with 

maintenance. States with contributions below 1 percent of the 
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version, but it is not the official version.

NAAQS are considered to not significantly contribute to 

nonattainment or interfere with maintenance of the NAAQS in 

downwind states.18

To apply the third step of the 4-step CSAPR framework, the 

EPA quantified emission budgets that limit allowable emissions 

and represent the emission levels that remain after each state 

makes EGU NOX emission reductions that are necessary to reduce 

interstate ozone transport for the 2008 NAAQS. To establish the 

CSAPR Update emission budgets, the EPA evaluated levels of 

uniform NOX control stringency, represented by an estimated 

marginal cost per ton of NOX reduced. The EPA applied the CSAPR 

multi-factor test to evaluate cost, available emission 

reductions, and downwind air quality impacts to determine the 

appropriate level of uniform NOX control stringency that 

addresses the impacts of interstate transport on downwind 

nonattainment or maintenance receptors. The EPA used this multifactor assessment to gauge the extent to which emission 

reductions are needed, and to ensure those reductions do not 

represent over-control.

 

18 As discussed further in section V, EPA’s modeling showed that the following 

eastern states contribute below the 1 percent contribution threshold to 

downwind nonattainment or maintenance receptors: Connecticut, Florida, 

Georgia, Maine, Massachusetts, Minnesota, Nebraska, New Hampshire, North 

Carolina, North Dakota, Rhode Island, South Carolina, South Dakota, and 

Vermont. 
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The multi-factor test generates a “knee in the curve” at a 

point where emission budgets reflect a control stringency with 

an estimated marginal cost of $1,400 per ton. This level of 

stringency in emission budgets represents the level at which 

incremental EGU NOX reduction potential and corresponding 

downwind ozone air quality improvements are maximized with 

respect to marginal cost. That is, the ratio of emission 

reductions to marginal cost and the ratio of ozone improvements 

to marginal cost are maximized relative to the other emission 

budget levels evaluated. The EPA finds that very cost-effective 

EGU NOX reductions can make meaningful and timely improvements in 

downwind ozone air quality to address interstate ozone transport 

for the 2008 ozone NAAQS for the 2017 ozone season. Further, 

this evaluation shows that emission budgets reflecting the

$1,400 per ton cost threshold do not over-control upwind states’ 

emissions relative to either the downwind air quality problems 

to which they are linked or the 1 percent contribution threshold 

that triggered further evaluation. As a result, the EPA is 

finalizing EGU NOX ozone season emission budgets developed using 

uniform control stringency represented by $1,400 per ton. The 

emission budgets that the EPA is finalizing in FIPs for the 

CSAPR Update rule are summarized in table I.B-1.
25

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Table I.B-1. Final 2017 EGU NOX Ozone Season Emission Budgets for 

the CSAPR Update Rule (Ozone Season NOX Tons) 

State

CSAPR Update Rule 

2017* Emission 

Budgets

Alabama 13,211

Arkansas 12,048 / 9,210

Illinois 14,601

Indiana 23,303

Iowa 11,272

Kansas 8,027

Kentucky 21,115

Louisiana 18,639

Maryland 3,828

Michigan 17,023

Mississippi 6,315

Missouri 15,780

New Jersey 2,062

New York 5,135

Ohio 19,522

Oklahoma 11,641

Pennsylvania 17,952

Tennessee 7,736

Texas 52,301

Virginia 9,223

West Virginia 17,815

Wisconsin 7,915

22 State Region 316,464 / 313,626

*The EPA is finalizing CSAPR EGU NOX ozone season emission 

budgets for Arkansas of 12,048 tons for 2017 and 9,210 tons for 

2018 and subsequent control periods.

Our analysis shows that there is uncertainty regarding 

whether or not meaningful, cost-effective non-EGU emission 

reductions are achievable for the 2017 ozone season. Therefore, 

non-EGU reductions are not included in the final rule.
26

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For most states, the EGU NOX ozone season emission budgets 

finalized in this action represent a partial remedy to address 

interstate emission transport for the 2008 ozone NAAQS.19

However, as stated in the proposal, the EPA believes that it is 

beneficial to implement, without further delay, EGU NOX

reductions that are achievable in the near term, particularly 

before the Moderate area attainment date of 2018. Generally, 

notwithstanding that additional reductions may be required to 

fully address the states’ interstate transport obligations, the 

EGU NOX emission reductions implemented by this final rule are 

needed for upwind states to eliminate their significant 

contribution to nonattainment or interference with maintenance 

of the 2008 ozone NAAQS and for downwind states with ozone 

nonattainment areas that are required to attain the standard by 

July 20, 2018. 

To meet the fourth step of the four-step CSAPR framework

(i.e., implementation), the FIPs contain enforceable measures 

necessary to achieve the emission reductions in each state. The 

FIPs contained in this CSAPR Update require power plants in 

covered states (i.e., states that significantly contribute to 

ozone nonattainment or interfere with maintenance of the ozone 

 

19 The requirements for one state, Tennessee, will fully eliminate that 

state’s significant contribution to downwind nonattainment and interference 

with maintenance of the 2008 ozone NAAQS.
27

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

standard in the east) to participate in a CSAPR NOX ozone season 

Group 2 allowance trading program. CSAPR’s trading programs and

the EPA’s prior emission trading programs (e.g., CAIR and the NOX

SIP Call) provide a proven implementation framework for 

achieving emission reductions. In addition to providing 

environmental certainty (i.e., a cap on emissions), these 

programs also provide regulated sources with flexibility in 

choosing compliance strategies. By using the CSAPR allowance 

trading programs, the EPA is applying an implementation 

framework that was shaped by notice and comment in previous 

rulemakings and reflects the evolution of these programs in 

response to court decisions and practical experience gained by 

states, industry and the EPA. Further, this program is familiar 

to the EGUs that will be regulated under this rule, which means 

that monitoring, reporting, and compliance will continue as they 

are already conducted under CSAPR’s current ozone season and 

annual programs.20 

The CSAPR Update establishes two trading groups within the 

CSAPR NOX ozone season allowance trading program -- Group 1 for 

Georgia and Group 2 for the 22 CSAPR Update states. At this 

 

20 One state, Kansas, will have a new CSAPR ozone season requirement. EGUs 

located in Kansas currently participate in the CSAPR NOX and SO2 annual 

programs. The remaining 22 states were included in the original CSAPR ozone 

season program as to the 1997 ozone NAAQS.
28

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

time, Georgia is the only state included in the CSAPR NOX ozone 

season Group 1 trading program. The EPA will issue distinct 

allowances for these trading groups; CSAPR NOX ozone season Group 

1 allowances and CSAPR NOX ozone season Group 2 allowances. 

Covered entities demonstrate compliance by holding and 

surrendering one allowance for each ton of NOX emitted during the 

ozone season. In order to ensure that the CSAPR NOX ozone season 

trading program implements emission reductions needed to meet 

the Clean Air Act’s good neighbor requirements for the CSAPR 

Update states, the EPA finalizes a prohibition on allowance 

usage between Georgia and the CSAPR Update states. However, the 

EPA provides an option for Georgia to voluntarily adopt via SIP 

an emission budget that is commensurate with CSAPR Update 

emission budgets that could include Georgia in the Group 2 

trading program with the CSAPR Update states. Implementation of 

Group 1 and Group 2 trading programs is substantially the same 

as the original CSAPR NOX ozone season trading program. For 

states with continuing obligations to address interstate 

transport with respect to the 1997 ozone NAAQS as well as 

obligations under this rule with respect to the 2008 ozone 

NAAQS, 21 the EPA is coordinating the FIP requirements for the 

 

21 Alabama, Arkansas, Illinois, Indiana, Kentucky, Louisiana, Mississippi, 

Missouri, and Tennessee.
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version, but it is not the official version.

two NAAQS by providing that compliance with the 2008 ozone NAAQS 

FIP requirements simultaneously satisfies the state’s transport 

obligations with respect to the less stringent 1997 ozone NAAQS.

These states will therefore only be required to comply with the 

CSAPR NOX ozone season Group 2 requirements.

For this CSAPR Update, the EPA considered whether, and to 

what extent, banked22 2015 and 2016 CSAPR NOX ozone season 

allowances should be eligible for compliance in the CSAPR Update 

rule states. As proposed, the CSAPR Update finalizes a limit on 

the number of banked allowances carried over based on the need 

to assure that the CAA objective of the CSAPR Update is 

achieved. This approach transitions some allowances for 

compliance to further ensure feasibility of implementing the 

CSAPR Update rule. The EPA proposed to use turn-in ratios 

calculated using a formula -- essentially the same formula that 

the EPA is finalizing in this rule. Specifically, the final rule

establishes a one-time allowance conversion that transitions a 

limited number of banked vintage 2015 and 2016 allowances for 

compliance use in CSAPR Update states. This allowance conversion 

limits the number of banked allowances to 1.5 years of states’ 

aggregated CSAPR variability limits (approximately 99,700

 

22 Allowances that were not used for compliance and were saved for use in a 

later compliance period.
30

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

allowances) in order to ensure that implementation of the 

trading program will result in NOX emission reductions sufficient 

to address significant contribution to nonattainment or 

interference with maintenance of downwind pollution with respect 

to the 2008 ozone NAAQS. 

The compliance requirements of this final rule are in 

addition to existing, on-the-books EPA and state environmental 

regulations. To the extent that new, unplanned actions may also 

reduce EGU NOX emissions within a state included in the CSAPR 

Update, whether for compliance with other environmental 

requirements or for other reasons, such actions would help the 

state comply with its good neighbor requirements. The final FIP 

compliance requirements begin with the 2017 ozone season and 

will continue for subsequent ozone seasons to ensure that upwind 

states included in this rule meet their Clean Air Act obligation

to address interstate emission transport with respect to the 

2008 ozone NAAQS for 2017 and future years. Even after the 

attainment deadline has passed, areas are required to continue 

to attain and maintain the NAAQS, and these good neighbor 

emission limits will ensure that future emissions are consistent 

with states’ ongoing good neighbor obligations. 

The EPA is finalizing revisions to the Code of Federal 

Regulations (CFR), specifically: 40 CFR part 97, subparts BBBBB 
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version, but it is not the official version.

and EEEEE (federal CSAPR NOX ozone season trading programs); 40 

CFR 52.38(b) (CSAPR NOX ozone season FIP requirements and rules 

on replacing or modifying the FIP requirements through a SIP

revision); state-specific subparts of 40 CFR part 52 for 25 

states (descriptions for these states of FIP requirements and 

consequences of SIP revisions related to ozone season NOX

emissions); and 40 CFR part 78 (provisions addressing the scope 

of coverage of the administrative appeal procedures) to address 

interstate transport for the 2008 ozone NAAQS. In addition, as 

proposed, various minor corrections are being finalized to these 

CFR sections and other sections of parts 52, 78, and 97 relating 

to the CSAPR ozone season and annual trading programs.

The remainder of this preamble is organized as follows: 

section III describes the EPA’s legal authority for this action; 

section IV describes the human health and environmental context, 

the EPA’s overall approach for addressing interstate transport

through use of the CSAPR framework, and the EPA’s response to 

the remand of certain CSAPR NOX ozone season emission budgets; 

section V describes the air quality modeling platform and 

emission inventories that the EPA used in its assessment of 

downwind receptors of concern and upwind state ozone 

contributions to those receptors for the final rule; section VI 

describes the EPA’s approach to quantify upwind state 
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obligations in the form of final EGU NOX emission budgets; 

section VII details the implementation requirements including 

key elements of the CSAPR allowance trading program and 

deadlines for compliance; section VIII describes the expected 

costs, benefits, and other impacts of this rule; section IX 

discusses changes to the existing regulatory text for the CSAPR 

FIPs and the CSAPR trading programs; and section X discusses the 

statutes and executive orders affecting this rulemaking. The 

preamble sections include certain significant comments and 

responses to comments as they pertain to the topic covered in 

each section.

C. Benefits and Costs

The rule will achieve near-term emission reductions from 

the power sector, lowering ozone season NOX in 2017 by 61,000

tons, compared to 2017 projections without the rule.

Consistent with Executive Order 13563, “Improving 

Regulation and Regulatory Review,” the EPA has estimated the 

costs and benefits of the rule. Estimates here are subject to 

uncertainties discussed further in the Regulatory Impact 

Analysis (RIA) in the docket. The estimated net benefits of the 

rule at 3 percent and 7 percent discount rates are $460 million 

to $810 million and $450 million to $790 million (2011$), 

respectively. The non-monetized benefits include reduced 
33

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ecosystem impacts and improved visibility. Discussion of the 

rule’s costs and benefits is provided in preamble section VIII 

and in the RIA, which is found in the docket for this final 

rule. The EPA’s estimate of the rule’s costs and quantified 

benefits is summarized in Table I.C-1.

Table I.C-1 Summary of Compliance Costs, Monetized Benefits, and 

Monetized Net Benefits of the Final Rule for 2017 (2011$)

Description

Impacts

(benefits at 

3% discount 

rate)

($ millions)

Impacts 

(benefits at 

7% discount 

rate) ($ 

millions)

Annualized 

Compliance Costs a

$68 $68

Monetized benefits b $530 to $880 $520 to $860

Monetized Net 

benefits (benefitscosts)

$460 to $810 $450 to $790

a The annualized compliance costs estimate is used as a proxy for 

the total annualized social costs. These costs are determined 

using the 4.77% percent discount rate from the electricity 

sector model used for this analysis and are rounded to two 

significant figures. The annualized compliance costs presented 

here reflect the cost to the electricity sector of complying 
34

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version, but it is not the official version.

with the FIPs. These costs do not include monitoring, 

recordkeeping, and reporting costs, which are reported 

separately. See Chapter 4 of the RIA for this final rule for 

details and explanation.

b Total monetized health benefits are estimated at 3 percent and 

7 percent discount rates and are rounded to two significant 

figures. The total monetized benefits reflect the human health 

benefits associated with reducing exposure to ozone and PM2.5. It 

is important to note that the monetized benefits and co-benefits 

include many but not all health effects associated with 

pollution exposure. Benefits are shown as a range reflecting 

studies from Krewski et al. (2009) with Smith et al. (2009) to 

Lepeule et al. (2012) with Zanobetti and Schwartz (2008).

II. General Information

A. To Whom Does this Final Action Apply?

This rule affects EGUs, and regulates the following groups:

Industry Group NAICS*

Fossil fuel-fired electric 

power generation 

221112

*North American Industry Classification System

This table is not intended to be exhaustive, but rather 

provides a guide for readers regarding entities likely to be 

regulated by this action. This table lists the types of entities 
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version, but it is not the official version.

that the EPA is now aware will be regulated by this action. 

Other types of entities not listed in the table could also be 

regulated. To determine whether your entity is regulated by this 

action, you should carefully examine the applicability criteria 

found in 40 CFR 97.504 and 97.804. If you have questions 

regarding the applicability of this action to a particular 

entity, consult the person listed in the FOR FURTHER INFORMATION 

CONTACT section.

III. Legal Authority

A. The EPA’s Statutory Authority for the Final Rule

The statutory authority for this final action is provided by 

the CAA as amended (42 U.S.C. 7401 et seq.). Specifically, 

sections 110 and 301 of the CAA provide the primary statutory 

underpinnings for this rule. The most relevant portions of 

section 110 are subsections 110(a)(1), 110(a)(2), and 

110(a)(2)(D)(i)(I), and 110(c)(1). 

Section 110(a)(1) provides that states must make SIP 

submissions “within 3 years (or such shorter period as the 

Administrator may prescribe) after the promulgation of a 

national primary ambient air quality standard (or any revision 

thereof),” and that these SIP submissions are to provide for the 
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version, but it is not the official version.

“implementation, maintenance, and enforcement” of such NAAQS.23

The statute directly imposes on states the duty to make these 

SIP submissions, and the requirement to make the submissions is 

not conditioned upon the EPA taking any action other than 

promulgating a new or revised NAAQS.24

The EPA has historically referred to SIP submissions made 

for the purpose of satisfying the applicable requirements of CAA 

sections 110(a)(1) and 110(a)(2) as “infrastructure SIP” 

submissions. Section 110(a)(1) addresses the timing and general 

requirements for infrastructure SIP submissions, and section 

110(a)(2) provides more details concerning the required content 

of these submissions. It includes a list of specific elements 

that “[e]ach such plan” submission must address.25 All states, 

regardless of whether the state includes areas designated as 

nonattainment for the relevant NAAQS, must have SIPs that meet 

the applicable requirements of section 110(a)(2), including 

provisions of section 110(a)(2)(D)(i)(I) described later and 

that are the focus of this rule. 

 

23 42 U.S.C. 7410(a)(1).

24 See EPA v. EME Homer City Generation, L.P., 134 S. Ct. 1584, 1601 

(2014).

25 The EPA’s general approach to infrastructure SIP submissions is 

explained in greater detail in individual notices acting or proposing 

to act on state infrastructure SIP submissions and in guidance. See, 

e.g., Guidance on Infrastructure State Implementation Plan (SIP) 

Elements under Clean Air Act Sections 110(a)(1) and 110(a)(2) (Sept. 

2013).
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Section 110(c)(1) requires the Administrator to promulgate a 

FIP at any time within 2 years after the Administrator: 1) finds 

that a state has failed to make a required SIP submission, 2) 

finds a SIP submission to be incomplete pursuant to CAA section 

110(k)(1)(C), or 3) disapproves a SIP submission, unless the 

state corrects the deficiency through a SIP revision that the 

Administrator approves before the FIP is promulgated.26 

Section 110(a)(2)(D)(i)(I), also known as the “good neighbor 

provision,” provides the basis for this action. It requires that 

each state SIP shall include provisions sufficient to 

“prohibit[] . . . any source or other type of emissions activity 

within the State from emitting any air pollutants in amounts 

which will — (I) contribute significantly to nonattainment in, 

or interfere with maintenance by, any other State with respect 

to any [NAAQS].”27

The EPA has previously issued three rules interpreting and 

clarifying the requirements of section 110(a)(2)(D)(i)(I) for 

states in the eastern half of the United States. These rules, 

and the associated court decisions addressing these rules, 

provide important guidance regarding the requirements of section 

110(a)(2)(D)(i)(I).

 

26 42 U.S.C. 7410(c)(1).

27 42 U.S.C. 7410(a)(2)(D)(i)(I).
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The NOX SIP Call, promulgated in 1998, addressed the good 

neighbor provision for the 1979 1-hour ozone NAAQS and the 1997 

8-hour ozone NAAQS.28 The rule required 22 states and the 

District of Columbia to amend their SIPs and limit NOX emissions 

that contribute to ozone nonattainment. The EPA set a NOX ozone 

season budget for each covered state, essentially a cap on ozone 

season NOX emissions in the state. Sources in the covered states 

were given the option to participate in a regional cap-and-trade 

program, known as the NOX Budget Trading Program (NBP). The NOX

SIP Call was largely upheld by the D.C. Circuit in Michigan v. 

EPA, 213 F.3d 663 (D.C. Cir. 2000), cert. denied, 532 U.S. 904 

(2001). 

The Clean Air Interstate Rule (CAIR), promulgated in 2005, 

addressed both the 1997 PM2.5 and the 1997 ozone standards under 

the good neighbor provision.29 CAIR required SIP revisions in 28 

states and the District of Columbia to ensure that certain 

emissions of sulfur dioxide (SO2) and/or NOX — important 

precursors of regionally transported PM2.5 (SO2 and NOX) and ozone 

(NOX) – were prohibited. Like the NOX SIP Call, states were given 

the option to participate in a regional cap-and-trade program to 

satisfy their SIP obligations. When the EPA promulgated the 

 

28 63 FR 57356 (Oct. 27, 1998).

29 70 FR 25162 (May 12, 2005).
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final CAIR in May 2005, the EPA also issued a national rule 

finding that states had failed to submit SIPs to address the 

requirements of CAA section 110(a)(2)(D)(i) with respect to the 

1997 PM2.5 and the 1997 ozone NAAQS. Those states were required 

by the CAA to have submitted good neighbor SIPs for those 

standards by July 2000.30 These findings of failure to submit 

triggered a 2-year clock for the EPA to issue FIPs to address 

interstate transport, and on March 15, 2006, the EPA promulgated 

FIPs to ensure that the emission reductions required by CAIR 

would be achieved on schedule.31 CAIR was remanded to the EPA by 

the D.C. Circuit in North Carolina, 531 F.3d 896 (D.C. Cir. 

2008), modified on reh’g, 550 F.3d 1176. For more information on 

the legal considerations of CAIR and the D.C. Circuit holding in 

North Carolina, refer to the preamble of the original CSAPR 

rule.32

In 2011, the EPA promulgated the original CSAPR to address 

the issues raised by the remand of CAIR and additionally to 

address the good neighbor provision for the 2006 PM2.5 NAAQS.33

CSAPR requires 28 states to reduce SO2 emissions, annual NOX

emissions, and/or ozone season NOX emissions that significantly 

 

30 70 FR 21147 (May 12, 2005). 

31 71 FR 25328 (April 28, 2006).

32 76 FR 48208, 48217 (Aug. 8, 2011).

33 76 FR 48208.
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contribute to other states’ nonattainment or interfere with 

other states’ abilities to maintain these air quality standards. 

To accomplish implementation aligned with the applicable 

attainment deadlines, the EPA promulgated FIPs for each of the 

28 states covered by CSAPR. The FIPs implement regional cap-andtrade programs to achieve the necessary emission reductions. 

States can submit good neighbor SIPs at any time that, if 

approved by the EPA, would replace the CSAPR FIP for that 

state.34 As discussed later, CSAPR was the subject of decisions 

by both the D.C. Circuit and the Supreme Court, which largely 

upheld the rule. 

On August 21, 2012, the D.C. Circuit issued a decision in 

EME Homer City Generation, L.P. v. EPA, 696 F.3d 7 (D.C. Cir. 

2012), vacating CSAPR and holding, among other things, that 

states had no obligation to submit good neighbor SIPs until the 

EPA had first quantified each state’s good neighbor obligation.35

The implication of this decision was that the EPA did not have 

authority to promulgate the CSAPR FIPs as a result of states’ 

failure to submit or the EPA’s disapproval of good neighbor 

 

34 Alabama has submitted, and EPA has proposed to approve, a SIP revision that 

replaces the CSAPR FIPs for the annual trading programs in Alabama. 81 FR 

41914 (June 28, 2016).

35 EME Homer City Generation, L.P. v. EPA, 696 F.3d 7, 31 (D.C. Cir. 

2012) (EME Homer City I).
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SIPs. The D.C. Circuit also held that the EPA erred in 

apportioning upwind emission reduction obligations using uniform 

cost thresholds, and that such approach may result in 

unnecessary over-control.36 The EPA sought review, first with the 

D.C. Circuit en banc and then with the Supreme Court. While the 

D.C. Circuit declined to consider the EPA’s appeal en banc,37 on 

January 23, 2013, the Supreme Court granted the EPA’s petition 

for certiorari.38

On April 29, 2014, the Supreme Court issued a decision 

reversing the D.C. Circuit’s EME Homer City opinion on CSAPR and 

held, among other things, that under the plain language of the 

CAA, states must submit SIPs addressing the good neighbor 

provision within 3 years of promulgation of a new or revised 

NAAQS, regardless of whether the EPA first provides guidance, 

technical data or rulemaking to quantify the state’s 

obligation.39 Thus, the Supreme Court affirmed that states have 

an obligation in the first instance to address the good neighbor 

provision after promulgation of a new or revised NAAQS, a 

 

36 Id. at 23-27.

37 EME Homer City Generation, L.P. v. EPA, No. 11-1302 (D.C. Cir. 

January 24, 2013), ECF No. 1417012 (denying the EPA’s motion for 

rehearing en banc) (EME Homer City II).

38 EPA v. EME Homer City Generation, L.P., 133 S. Ct. 2857 (2013) 

(granting the EPA’s and other parties’ petitions for certiorari).

39 EPA v. EME Homer City Generation, L.P., 134 S. Ct. 1584, 1600-01 

(2014).
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holding that also applies to states’ obligation to address 

interstate transport for the 2008 ozone NAAQS. The Court also 

reversed the D.C. Circuit’s holding that the EPA’s use of cost 

to apportion upwind states’ emission reduction obligations was 

impermissible, finding that the EPA’s approach was a 

“permissible construction of the statute.”40 The Supreme Court 

remanded the litigation to the D.C. Circuit for further 

proceedings. 

Finally, on July 28, 2015, the D.C. Circuit issued its 

opinion on CSAPR regarding the remaining legal issues raised by 

the petitioners on remand from the Supreme Court, EME Homer City

II, 795 F.3d 118. This decision largely upheld the EPA’s 

approach to addressing interstate transport in CSAPR, leaving 

the rule in place and affirming the EPA’s interpretation of 

various statutory provisions and the EPA’s technical decisions. 

The decision also remanded the rule without vacatur for 

reconsideration of the EPA’s emission budgets for certain 

states. In particular and as discussed in section IV, the court 

declared invalid the CSAPR phase 2 NOX ozone season emission 

budgets of 11 states, holding that those budgets over-control 

with respect to the downwind air quality problems to which those 

 

40 Id. at 1606-07. I 
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states were linked for the 1997 ozone NAAQS. The court’s 

decision explicitly applies to 11 states: Florida, Maryland, New 

Jersey, New York, North Carolina, Ohio, Pennsylvania, South 

Carolina, Texas, Virginia, and West Virginia. Id. at 129-30, 

138. The court also remanded without vacatur the CSAPR phase 2 

SO2 annual emission budgets for four states (Alabama, Georgia, 

South Carolina, and Texas) for reconsideration. Id. at 129, 138. 

The court instructed the EPA to act “promptly” in addressing 

these issues on remand. Id. at 132.41 

Section 301(a)(1) of the CAA also gives the Administrator of 

the EPA general authority to prescribe such regulations as are 

necessary to carry out her functions under the Act.42 Pursuant to 

this section, the EPA has authority to clarify the applicability 

of CAA requirements. In this action, among other things, the EPA 

is clarifying the applicability of section 110(a)(2)(D)(i)(I) by 

identifying NOX emissions in certain states that must be 

 

41 In 2011, EPA finalized a supplemental rule that added five states to the 

CSAPR NOx ozone season trading program, 76 FR 80760 (Dec. 27, 2011). In 2012, 

the EPA also finalized two rules making certain revisions to CSAPR. 77 FR 

10324 (Feb. 21, 2012); 77 FR 34830 (June 12, 2012). Various petitioners filed 

legal challenges to these rules in the D.C. Circuit. See Public Service 

Company of Oklahoma v. EPA, No. 12-1023 (D.C. Cir., filed Jan. 13, 2012); 

Wisconsin Public Service Corp. v. EPA, No. 12-1163 (D.C. Cir., filed Apr. 6, 

2012); Utility Air Regulatory Group v. EPA, No. 12-1346 (D.C. Cir., filed 

Aug. 9, 2012). These cases were held in abeyance during the pendency of the 

litigation in EME Homer City, and remain pending in the D.C. Circuit as of 

the date of signature of this rule.

42 42 U.S.C. 7601(a)(1).
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

prohibited pursuant to this section with respect to the 2008

ozone NAAQS.

In particular, the EPA is using its authority under 

sections 110 and 301 to promulgate FIPs that establish or revise 

EGU NOX ozone season emission budgets for 22 eastern states to 

mitigate their significant contribution to nonattainment or 

interference with maintenance of the 2008 ozone NAAQS in another 

state.43 The EPA is also responding to the court’s remand in EME 

Homer City II with respect to the remanded NOX ozone season 

emission budgets.

B. FIP Authority for Each State Covered by the Final Rule 

As discussed previously, all states have an obligation to 

submit SIPs that address the applicable requirements of CAA 

section 110(a)(2) within 3 years of promulgation of a new or 

revised NAAQS. With respect to the 2008 ozone NAAQS, states were 

required to submit SIPs addressing the good neighbor provision 

by March 12, 2011. If the EPA finds that a state has failed to 

submit a SIP to meet its statutory obligation to address section 

110(a)(2)(D)(i)(I) or if the EPA disapproves a good neighbor 

SIP, then the EPA has not only the authority but the obligation, 

pursuant to section 110(c)(1), to promulgate a FIP to address 

 

43 One state, Kansas, will have a new CSAPR ozone season requirement under 

this final rule. The remaining 21 states were included in the original CSAPR 

ozone season program as to the 1997 ozone NAAQS.
45

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

the CAA requirement no later than 2 years after the finding or 

disapproval.

On July 13, 2015, the EPA published a rule finding that 24 

states failed to make complete submissions that address the 

requirements of section 110(a)(2)(D)(i)(I) related to the 

interstate transport of pollution as to the 2008 ozone NAAQS. 

See 80 FR 39961 (July 13, 2015) (effective August 12, 2015). The 

finding action triggered a 2-year deadline for the EPA to issue 

FIPs to address the good neighbor provision for these states by 

August 12, 2017. The states included in this finding of failure 

to submit are: Alabama, Arkansas, California, Florida, Georgia, 

Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, 

Minnesota, Mississippi, Missouri, New Hampshire, New Mexico, 

North Carolina, Oklahoma, Pennsylvania, South Carolina, 

Tennessee, Vermont, Virginia, and West Virginia. 

Several additional eastern states – Connecticut, Delaware,

Indiana, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, 

New York, North Dakota, Ohio, Rhode Island, South Dakota, Texas, 

Wisconsin, and the District of Columbia – had previously 

submitted SIPs to address the requirements of section 

110(a)(2)(D)(i)(I) for the 2008 ozone NAAQS. Since the EPA 

issued the findings notice, the agency has also received a SIP 

submission addressing the good neighbor provision for the 2008 
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ozone NAAQS from the states of Maine, New Hampshire, North 

Carolina, and Vermont. Maryland and New Jersey subsequently 

withdrew their good neighbor SIP submittals addressing the 2008 

ozone standard. The EPA issued separate notices finding that 

Maryland and New Jersey failed to make complete submissions that 

address the requirements of section 110(a)(2)(D)(i)(I) related 

to the interstate transport of pollution as to the 2008 ozone 

NAAQS. See 81 FR 47040 (July 20, 2016) (Maryland, effective 

August 19, 2016); 81 FR 38963 (June 15, 2016) (New Jersey,

effective July 15, 2016). The finding actions triggered a 2-year 

deadline for the EPA to issue FIPs to address the good neighbor 

provision for Maryland by August 19, 2018 and New Jersey by July 

15, 2018.

To the extent that the EPA had not finalized action on 

these SIPs at proposal, the states were encouraged to evaluate 

their submissions in light of the information provided in the 

proposal with respect to interstate ozone transport for the 2008 

ozone NAAQS. The EPA has finalized disapproval or partial 

disapproval of the good neighbor SIPs from Indiana, Kentucky, 

Louisiana, New York, Ohio, Texas and Wisconsin44, triggering the 

 

44 The EPA has finalized a partial disapproval of the good neighbor SIP from 

the state of Wisconsin. The EPA partially approved Wisconsin’s SIP as to the 

state’s significant contribution to nonattainment and partially disapproved 

as to the state’s interference with maintenance of the 2008 ozone NAAQS. See

81 FR 53309 (August 12, 2013). 
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EPA’s authority and obligation to promulgate FIPs that implement 

the requirements of the good neighbor provision for those 

states. The EPA has approved good neighbor SIPs addressing the 

2008 ozone standard submitted by Nebraska, North Dakota, and 

South Dakota. The EPA has not yet taken final action to approve 

or disapprove the SIPs submitted by Connecticut, Delaware, the 

District of Columbia, Maine, New Hampshire, North Carolina, 

Rhode Island, and Vermont. However, the EPA is not finalizing 

FIPs as to these states in this action. The EPA will review and 

act upon these states’ SIPs in separate, future actions.

Comment: Some commenters have questioned the EPA’s 

authority to propose FIPs for certain states before the EPA has 

either issued findings of failure to submit good neighbor SIPs 

or taken final action to approve or disapprove pending good 

neighbor SIPs submitted by those states. Commenters state that

the EPA’s development of FIPs prior to taking those actions 

upsets the balance of state and federal authority. Some 

commenters state that this approach is inconsistent with the 

sequencing of events envisioned by Congress in CAA section 

110(c). Another commenter contends that the CAA contemplates 

that states should have an opportunity to correct any problems 

with its SIP in a timely fashion and avoid imposition of a FIP. 

The commenter states that, until the EPA proposes to disapprove 
48

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version, but it is not the official version.

a state’s SIP, the state does not know what corrections would be 

necessary. 

One commenter states that the Supreme Court’s decision in 

EPA v. EME Homer City Generation means that the EPA may issue a 

FIP if more than two years have elapsed since the EPA found the 

state’s SIP was inadequate. The commenter suggests that states 

should be given the opportunity to submit a SIP after the EPA 

establishes a state budget before a FIP is implemented. The 

commenter states that the EPA adhered to the CAA in prior 

transport rulemakings like the NOX SIP Call and CAIR by allowing 

states to decide how to meet budgets quantified by the EPA.

Response: The EPA disagrees with commenters’ contention 

that we cannot propose a FIP for a state prior to taking final 

action on the state’s SIP. CAA section 110(c) provides that the 

EPA “shall promulgate a [FIP] at any time within two years 

after” the EPA either finds that a state has failed to make a 

required submission or disapproves a SIP, in whole or in part. 

As the Supreme Court confirmed in EPA v. EME Homer City 

Generation, “EPA is not obliged to wait two years or postpone 

its action even a single day: The Act empowers the Agency to 

promulgate a FIP ‘at any time’ within the two-year limit.” 134 

S. Ct. at 1601. 
49

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The EPA’s proposal was not the “promulgation” of a FIP. 

Rather, the EPA is only finalizing FIPs for those states for 

which the EPA has either made a finding of failure to submit a 

SIP addressing the state’s good neighbor obligation as to the 

2008 ozone NAAQS or for which the EPA disapproved the state’s 

good neighbor SIP. Accordingly, consistent with section 110(c), 

the EPA is only promulgating FIPs for those states that the EPA 

found have failed to address the statutory SIP obligation. 

The EPA also disagrees that it was required to provide 

states with an opportunity to submit a SIP addressing the 

budgets calculated in this rule before promulgating a FIP. The 

Supreme Court clearly held that the Act does not “condition the 

duty to promulgate a FIP on EPA’s having first quantified an

upwind State’s good neighbor obligations.” 134 S. Ct. at 1601. 

Nor does the Act “require EPA to furnish upwind States with 

information of any kind about their good neighbor obligations 

before a FIP issues.” Id. While the EPA has taken a different 

approach in some prior rulemakings by providing states with an 

opportunity to submit a SIP after the EPA quantified the states’ 

budgets, the circumstances of this rule require a different 

approach. As discussed in more detail earlier, it is important 

for the EPA to assure that emission reductions are achieved, to 

the extent feasible, by the 2017 ozone season in order to assist 
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downwind areas with meeting the July 20, 2018 attainment 

deadline for Moderate nonattainment areas. If the EPA were to 

permit states an opportunity to develop and submit state plans 

to address the emission reductions required by this rule before 

imposing a federal plan, the EPA could not ensure that these 

emission reductions would be achieved in a timely manner. 

However, states may submit SIPs to replace the FIPs promulgated 

in this final rule at any time. Some types of SIPs that a state 

might consider are outlined in more detail later in section VII.

In addition to the agency’s general FIP authority and the 

comments received on that issue, there is a unique issue related 

to the EPA’s FIP obligation for Kentucky. On March 7, 2013, the 

EPA finalized action on the State of Kentucky’s SIP submission 

addressing, among other things, the good neighbor provision 

requirements for the 2008 ozone NAAQS.45 The EPA disapproved the 

submission as to the good neighbor requirements. In the notice, 

the EPA explained that the disapproval of the good neighbor 

portion of the state’s infrastructure SIP submission did not 

trigger a mandatory duty for the EPA to promulgate a FIP to 

address these requirements.46 Citing the D.C. Circuit’s decision 

EME Homer City I, the EPA explained that the court concluded 

 

45 78 FR 14681 (March 7, 2013).

46 Id. at 14683.
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states have no obligation to make a SIP submission to address 

the good neighbor provision for a new or revised NAAQS until the 

EPA first defines a state’s obligations pursuant to that 

section.47 Therefore, because a good neighbor SIP addressing the 

2008 ozone standard was not at that time required, the EPA 

indicated that its disapproval action would not trigger an 

obligation for the EPA to promulgate a FIP to address the 

interstate transport requirements.48

On April 30, 2013, the Sierra Club filed a petition for 

review of the EPA’s action in the United States Court of Appeals 

for the Sixth Circuit based on the agency’s conclusion that the 

FIP clock was not triggered by the disapproval of Kentucky’s 

good neighbor SIP.49 Subsequently, on April 29, 2014, the Supreme 

Court issued a decision reversing and vacating the D.C. 

Circuit’s decision in EME Homer City. Following the Supreme 

Court decision, the EPA requested, and the Sixth Circuit 

granted, vacatur and remand of the portion of the EPA’s final 

action on Kentucky’s good neighbor SIP that determined that the 

FIP obligation was not triggered by the disapproval.50

 

47 Id.

48 Id.

49 Sierra Club v. EPA, Case No. 13-3546 (6th Cir., filed Apr. 30, 

2013).

50 Order, Sierra Club v. EPA, Case No. 13-3546, Document No. 74-1 (Mar. 

13, 2015).
52

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

In this notice, the EPA is correcting the portion of the 

Kentucky disapproval notice indicating that the FIP clock would 

not be triggered by the SIP disapproval. The EPA believes that 

the EPA’s obligation to develop a FIP was triggered on the date 

of the judgment issued by the Supreme Court in EPA v. EME Homer 

City Generation, June 2, 2014, and the EPA is obligated to issue 

a FIP at any time within two years of that date. The EPA does 

not believe that the FIP obligation was triggered as of the date 

of the SIP disapproval because the controlling law as of that 

date was the D.C. Circuit decision in EME Homer City I, which 

held that states had no obligation to submit a SIP and the EPA 

had no authority to issue a FIP until the EPA first quantified 

each state’s emission reduction obligation under the good 

neighbor provision. Accordingly, the most reasonable conclusion 

is that the EPA’s FIP obligation was triggered when the Supreme 

Court clarified the state and federal obligations with respect 

to the good neighbor provision. Thus, the EPA finds that the FIP 

obligation was triggered as of June 2, 2014, and that the EPA 

was obligated to promulgate a FIP that corrects the deficiency 

by June 2, 2016. 

IV. Air Quality Issues Addressed and Overall Approach for the 

Final Rule
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A. The Interstate Transport Challenge under the 2008 Ozone 

Standard

1. Background on the Nature of the Interstate Ozone Transport 

Problem

Interstate transport of NOX emissions poses significant 

challenges with respect to attaining the 2008 ozone NAAQS in the 

eastern U.S. and thus presents a threat to public health and 

welfare. The following sections discuss the nature and sources 

of ozone, how ozone is transported in the atmosphere and across 

state boundaries, and ozone’s impacts on human health and the 

environment.

a. Nature of ozone and the Ozone NAAQS. Ground-level ozone is 

not emitted directly into the air, but is a secondary air 

pollutant created by chemical reactions between oxides of 

nitrogen (NOX), carbon monoxide (CO), methane (CH4), and nonmethane volatile organic compounds (VOCs) in the presence of 

sunlight. Emissions from electric utilities, industrial 

facilities, motor vehicles, gasoline vapors, and chemical 

solvents are some of the major anthropogenic sources of ozone

precursors. The potential for ground-level ozone formation 

increases during periods with warmer temperatures and stagnant 

air masses; therefore ozone levels are generally higher during 
54

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

the summer months.51 Ground-level ozone concentrations and 

temperature are highly correlated in the eastern U.S. with 

observed ozone increases of 2-3 ppb per degree Celsius

reported.52 Increased temperatures may also increase emissions of 

volatile man-made and biogenic organics and can indirectly 

increase anthropogenic NOX emissions as well (e.g., increased 

electricity generation to power air conditioning).

The 2008 primary and secondary ozone standards are both 75 

ppb as an 8-hour maximum level. Specifically, the standards 

require that an area may not exceed 75 ppb using the 3-year 

average of the fourth highest 24-hour maximum 8-hour rolling 

average ozone concentration.

b. Ozone transport. Precursor emissions can be transported 

downwind directly or, after transformation in the atmosphere, as 

ozone. Studies have established that ozone formation, 

atmospheric residence, and transport occurs on a regional scale 

(i.e., hundreds of miles) over much of the eastern U.S., with 

elevated concentrations occurring in rural as well as 

metropolitan areas. As a result of ozone transport, in any given 

 

51 Rasmussen, D.J. et. al. (2011) Ground-level ozone-temperature relationships 

in the eastern US: A monthly climatology for evaluating chemistry-climate 

models. Atmospheric Environment 47: 142-153.

52 Bloomer, B. J., J. W. Stehr, C. A. Piety, R. J. Salawitch, and R. R. 

Dickerson (2009), Observed relationships of ozone air pollution with 

temperature and emissions, Geophys. Res. Lett., 36, L09803
55

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

location, ozone pollution levels are impacted by a combination 

of local emissions and emissions from upwind sources. The 

transport of ozone pollution across state borders compounds the 

difficulty for downwind states in meeting health-based air 

quality standards (i.e., NAAQS). Numerous observational studies 

have demonstrated the transport of ozone and its precursors and 

the impact of upwind emissions on high concentrations of ozone 

pollution. Bergin et. al., for example, examined the impacts of 

statewide emissions of NOX, SO2, and VOCs on concentrations of 

ozone and fine particulate matter in the eastern U.S. They found 

on average 77 percent of each state’s ground-level ozone is 

produced by precursor emissions from upwind states.53 Liao et 

al., showed the impacts of interstate transport of anthropogenic 

NOX and VOC emissions on peak ozone formation in 2007 in the MidAtlantic U.S. Results suggest reductions in anthropogenic NOX

emissions from EGU and non-EGU sources from the Great Lakes 

region as well as northeastern and southeastern U.S. would be 

effective for decreasing area-mean peak ozone concentrations in 

the Mid-Atlantic.54

 

53 Bergin, M.S. et. al. (2007) Regional air quality: local and interstate 

impacts of NOx and SO2 emissions on ozone and fine particulate matter in the 

eastern United States. Environmental Sci & Tech. 41: 4677-4689.

54 Liao, K. et. al. (2013) Impacts of interstate transport of pollutants on 

high ozone events over the Mid-Atlantic United States. Atmospheric 

Environment 84, 100-112.
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version, but it is not the official version.

The EPA has previously concluded in the NOX SIP Call, CAIR, 

and CSAPR that, for reducing regional-scale ozone transport, a 

NOX control strategy is effective. While substantial progress has 

been made in reducing ozone in many urban areas, regional-scale 

ozone transport is still an important component of peak ozone 

concentrations during the summer ozone season. Model assessments 

have looked at impacts on peak ozone concentrations after 

potential emission reduction scenarios for NOX and VOCs for NOxlimited and VOC-limited areas. For example, Jiang and Fast 

concluded that NOX emission reductions strategies would be 

effective in lowering ozone mixing ratios in urban areas and 

Liao et. al. showed NOX reductions would reduce peak ozone 

concentrations in non-attainment areas in the Mid-Atlantic (i.e. 

a 10 percent reduction in EGU and non-EGU NOX emissions would 

result in approximately a 6 ppb reduction in peak ozone 

concentrations in Washington DC).55 Assessments of ozone 

conducted for the October 2015 Regulatory Impact Analysis of the 

Final Revisions to the National Ambient Air Quality Standards 

for Ground-Level Ozone (EPA-452/R-15-007) also show the 

importance of NOX emissions on ozone transport. This analysis is 

 

55 Jiang, G.; Fast, J.D. (2004) Modeling the effects of VOC and NOX emission 

sources on ozone formation in Houston during the TexAQS 2000 field campaign. 

Atmospheric Environment 38: 5071-5085.
57

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in the docket for this rule and also can be found in the docket 

for the 2015 ozone NAAQS, Docket No. EPA-HQ-OAR-2013-0169-0057.

Further, studies have found that EGU NOX emission 

reductions, particularly, can be effective in reducing ozone 

pollution as quantified by the form of the 2008 ozone standard, 

8-hour peak concentrations. Specifically, studies have found 

that EGU NOX emission reductions can be effective in reducing the 

upper end of the cumulative ozone distribution in the summer on 

a regional scale.56 Analysis of air quality monitoring data 

trends shows reductions in summertime ozone concurrent with 

implementation of EGU NOX reduction programs.57 Gilliland et. al. 

presented reductions in observed versus modeled ozone 

concentrations in the eastern U.S. downwind from major NOX

sources. The results showed significant reductions in ozone 

concentrations (10-25 percent) from observed measurements 

(CASTNET and AQS)58 between 2002 and 2005, linking reductions in 

EGU NOX emissions from upwind states with ozone reductions 

 

56 Hidy, G.M. and Blanchard C.L. (2015) Precursor reductions and ground-level 

ozone in the Continental United States. J. of Air & Waste Management Assn. 

65, 10.

57 Simon, H. et. al. (2015) Ozone trends across the United States over a 

period of decreasing NOx and VOC emissions. Environmental Science & 

Technology 49, 186-195.

58 CASTNET is the EPA’s Clean Air Status and Trends Network. AQS is the EPA’s 

Air Quality System.
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version, but it is not the official version.

downwind of the major source areas.59 Another study shows that 

EGU NOX emissions can contribute between 5 ppb and 25 ppb to 

average 8-hour peak ozone concentrations in Mid-Atlantic 

metropolitan statistical areas.60 Additionally, Gégo et. al. 

showed that ground-level ozone concentrations were significantly 

reduced after the NOX SIP Call in regions downwind of major EGUs 

in the Ohio River Valley.61 

Previous regional ozone transport efforts, including the NOX

SIP Call, CAIR, and CSAPR, required ozone season NOX reductions 

from EGUs to address interstate transport of ozone. The EPA has 

taken comment on regulating EGU NOX emissions to address 

interstate ozone transport in the notice-and-comment process for 

these rulemakings. The EPA received no significant adverse

comments in any of these earlier proposals regarding the rules’ 

focus on ozone season EGU NOX reductions to address interstate 

ozone transport. Further, many comments received on the proposed 

CSAPR Update encouraged the EPA to seek further EGU NOX

reductions to address interstate transport for the 2008 ozone 

 

59 Gilliland, A.B. et. al. (2008) Dynamic evaluation of regional air quality 

models: Assessing changes in O3 stemming from changes in emissions and 

meteorology. Atmospheric Environment 42: 5110-5123. 

60 Summertime Zero-Out Contributions of regional NOX and VOC emissions 

to modeled 8-hour ozone concentrations in the Washington, DC;

61 Gégo et. al. (2007) Observation-based assessment of the impact of nitrogen 

oxides emissions reductions on O3 air quality over the eastern United States. 

J. of Applied Meteorology and Climatology 46: 994-1008.
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NAAQS. As described later in this notice, the EPA’s analysis 

finds that the power sector continues to be capable of making NOX

reductions that reduce interstate transport with respect to 

ground-level ozone. 

c. Health and environmental effects. Exposure to ambient ozone 

causes a variety of negative effects on human health, 

vegetation, and ecosystems. In humans, acute and chronic 

exposure to ozone is associated with premature mortality and a 

number of morbidity effects, such as asthma exacerbation. In 

ecosystems, ozone exposure causes visible foliar injury, 

decreases plant growth, and affects ecosystem community 

composition. For more information on the human health and 

welfare and ecosystem effects associated with ambient ozone 

exposure, see the EPA’s October 2015 Regulatory Impact Analysis 

of the Final Revisions to the National Ambient Air Quality 

Standards for Ground-Level Ozone (EPA-452/R-15-007) in the 

docket for this rule and can be also found in the docket for the 

2015 ozone NAAQS, Docket No. EPA-HQ-OAR-2013-0169-0057.

2. Events Affecting Application of the Good Neighbor Provision 

for the 2008 Ozone NAAQS

On March 12, 2008, the EPA promulgated a revision to the 

NAAQS, lowering both the primary and secondary standards to 75 

ppb. See National Ambient Air Quality Standards for Ozone, Final 
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Rule, 73 FR 16436 (March 27, 2008). These revisions of the 

NAAQS, in turn, triggered a 3-year deadline of March 12, 2011, 

for states to submit SIP revisions addressing infrastructure 

requirements under CAA sections 110(a)(1) and 110(a)(2), 

including the good neighbor provision. During this 3-year SIP 

development period, on September 16, 2009, the EPA announced62

that it would reconsider the 2008 ozone NAAQS. To reduce the 

workload for states during the interim period of 

reconsideration, the EPA also announced its intention to propose 

staying implementation of the 2008 standards with respect to a 

number of the requirements. On January 6, 2010, the EPA proposed 

to revise the 2008 NAAQS for ozone from 75 ppb to a level within 

the range of 60 to 70 ppb. See 75 FR 2938 (January 19, 2010). 

The EPA indicated its intent to issue final standards based upon 

the reconsideration by summer 2011.

On August 8, 2011, the EPA published the original CSAPR, in 

response to the D.C. Circuit’s remand of the EPA’s prior federal 

transport rule, CAIR. See 76 FR 48208 (August 8, 2011). The 

original CSAPR addressed ozone transport under the 1997 ozone 

NAAQS, but did not address the 2008 ozone standard, because the 

 

62 Fact Sheet. The EPA to reconsider Ozone Pollution Standards. 

http://www.epa.gov/groundlevelozone/pdfs/O3_Reconsideration_FACT%20SHE

ET_091609.pdf
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2008 ozone NAAQS was under reconsideration when CSAPR was 

finalized.

On September 2, 2011, consistent with the direction of the 

President, the Administrator of the Office of Information and 

Regulatory Affairs of the Office of Management and Budget 

returned the draft final 2008 ozone rule the EPA had developed 

upon reconsideration to the agency for further consideration.63

In view of that action and the timing of the agency’s ongoing 

periodic review of the ozone NAAQS required under CAA section 

109 (as announced on September 29, 2008), the EPA decided to 

coordinate further proceedings on its voluntary reconsideration 

of the 2008 ozone standards with its ongoing periodic review of 

the ozone NAAQS.64 Implementation for the original 2008 ozone 

standards was renewed. However, a number of legal developments 

pertaining to the EPA’s promulgation of the original CSAPR 

created uncertainty surrounding the EPA’s statutory 

interpretation and implementation of the good neighbor 

provision.

 

63 See Letter from Cass R. Sunstein, Administrator, Office of 

Information and Regulatory Affairs, to Lisa Jackson, Administrator, 

U.S. Environmental Protection Agency (Sept. 2, 2011), available at 

http://www.reginfo.gov/public/return/EPA_Return_Letter_9-2-2011.pdf.

64 Id.
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On August 21, 2012, the D.C. Circuit issued a decision in 

EME Homer City Generation, L.P. v. EPA addressing several legal 

challenges to CSAPR and holding, among other things, that states 

had no obligation to submit good neighbor SIPs until the EPA had 

first quantified each state’s good neighbor obligation.65

According to that decision, the submission deadline for good 

neighbor SIPs under the CAA would not necessarily be tied to the 

promulgation of a new or revised NAAQS. While the EPA disagreed 

with this interpretation of the statute and sought review of the 

decision in the D.C. Circuit and the U.S. Supreme Court, the EPA 

complied with the D.C. Circuit’s ruling during the pendency of 

its appeal. In particular, the EPA indicated that, consistent 

with the D.C. Circuit’s opinion, it would not at that time issue 

findings that states had failed to submit good neighbor SIPs for 

the 2008 ozone NAAQS.66

 

65 EME Homer City, 696 F.3d at 31.

66 See, e.g., Memorandum from the Office of Air and Radiation former 

Assistant Administrator Gina McCarthy to the EPA Regions, “Next Steps 

for Pending Redesignation Requests and State Implementation Plan 

Actions Affected by the Recent Court Decision Vacating the 2011 CrossState Air Pollution Rule,” November 19, 2012; 78 FR 65559 (November 1, 

2013) (final action on Florida infrastructure SIP submission for 2008 

8-hour ozone NAAQS); 78 FR 14450 (March 6, 2013) (final action on 

Tennessee infrastructure SIP submissions for 2008 8-hour ozone NAAQS); 

Final Rule, Findings of Failure To Submit a Complete State 

Implementation Plan for section 110(a) Pertaining to the 2008 Ozone 

National Ambient Air Quality Standard, 78 FR 2884 (January 15, 2013).
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On January 23, 2013, the Supreme Court granted the EPA’s 

petition for certiorari.67 On April 29, 2014, the Supreme Court 

reversed the D.C. Circuit’s EME Homer City opinion on CSAPR and 

held, among other things, that under the plain language of the 

CAA, states must submit SIPs addressing the good neighbor 

provision within 3 years of promulgation of a new or revised 

NAAQS, regardless of whether the EPA first provides guidance, 

technical data, or rulemaking to quantify the state’s 

obligation.68 Thus, the Supreme Court affirmed that states have 

an obligation in the first instance to address the good neighbor 

provision after promulgation of a new or revised NAAQS, a 

holding that also applies to the states’ obligation to address 

transport for the 2008 ozone NAAQS.

States were therefore required to submit SIPs addressing 

the good neighbor provision with respect to the 2008 ozone NAAQS 

by March 12, 2011. Under the Supreme Court’s holding, to the 

extent that states have failed to submit SIPs to meet this 

statutory obligation or the EPA has disapproved SIPs, then the 

EPA has not only the authority, but the obligation, to 

promulgate FIPs to address the CAA requirement.

 

67 EPA v. EME Homer City Generation, L.P., 133 S. Ct. 2857 (2013) 

(granting the EPA’s and other parties’ petitions for certiorari).

68 EPA v. EME Homer City Generation, L.P., 134 S. Ct. at 1600-01.
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B. Approach to Address Ozone Transport under the 2008 Ozone 

NAAQS via FIPs

1. Requiring Emission Reductions from Upwind States

As described in section IV.A.1.b, the EPA finds that upwind 

EGU emission reductions are generally effective at reducing 

interstate transport of ozone pollution. And as described in 

section VI, with respect to this rule, the EPA finds that upwind 

emission reductions are achievable and will result in important 

and meaningful decreases in harmful downwind ozone pollution.

At the same time, the EPA also notes that section 

110(a)(2)(D)(i)(I) of the CAA only requires upwind states to 

prohibit emissions that will significantly contribute to 

nonattainment or interfere with maintenance of the NAAQS in 

other states. It does not shift to upwind states the full 

responsibility for ensuring that all areas in downwind states 

attain and maintain the NAAQS. Downwind states also have control 

responsibilities because, among other things, the Act requires 

each state to adopt enforceable plans (i.e., State 

Implementation Plans) to attain and maintain air quality 

standards. The requirements established for upwind states 

through this final rule will supplement downwind states’ local 

emission control strategies. The downwind states’ local control 

strategies, in conjunction with the emission reductions from 
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upwind states that this rule will provide, promote attainment 

and maintenance of the 2008 ozone NAAQS.

The Clean Air Act's good neighbor provision requires states 

and the EPA to address interstate transport of air pollution 

that affects downwind states' ability to attain and maintain 

NAAQS. Other provisions of the CAA, namely sections 179B and 

319(b), are available to deal with NAAQS exceedances not 

attributable to the interstate transport of pollution covered by 

the good neighbor provisions but caused by emission sources 

outside the control of a downwind state. These provisions 

address international transport and exceptional events, 

respectively.69,70

 

69 The EPA recognizes that both in-state and upwind wildfires may contribute 

to monitored ozone concentrations. The EPA encourages all states to consider 

how the appropriate use of prescribed fire may benefit public safety and 

health by resulting in fewer ozone exceedances for both the affected state 

and their neighboring states.

70 The CAA and the EPA’s implementing regulations, specifically the 

Exceptional Events Rule at 40 CFR 50.14, allow for the exclusion of air 

quality monitoring data from regulatory determinations when events, including 

wildland fires, contribute to NAAQS exceedances or violations if they meet 

certain requirements, including the criterion that the event be not 

reasonably controllable or preventable. Wildland fires can be of two types: 

Wildfire (unplanned) and prescribed fire (planned). Under the Exceptional 

Events Rule, unless there is evidence to the contrary, wildfires are 

considered, by their nature, to be not reasonably controllable or 

preventable. Because prescribed fires on wildland are intentionally ignited 

for resource management purposes, to meet the not reasonably controllable or 

preventable criterion, they must be conducted under a certified Smoke 

Management Program or employ basic smoke management practices. Both types of 

wildland fire must also satisfy the other rule criteria for influenced air 

quality monitoring data to be excluded under the Exceptional Events Rule. In 

November 2015, the EPA proposed revisions to the Exceptional Events Rule and 

released a draft guidance document, which applies the proposed rule revisions 

to wildfire events that could influence ozone concentrations. These actions, 
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Comment: Some commenters claimed that local measures should 

be evaluated first, before requiring upwind emission reductions, 

in terms of efforts to attain and maintain the 2008 ozone NAAQS. 

Commenters also claimed that the EPA failed to adequately 

evaluate local measures to reduce ozone concentrations at 

identified nonattainment and maintenance receptors.

Response: The EPA disagrees with these comments. First, the 

Clean Air Act makes no reference to considering local measures 

before upwind measures in planning for attainment and 

maintenance of a NAAQS. In fact, the EPA notes that commenters’

local-first argument is at opposition with the NAAQS 

implementation schedule provided in the CAA. Specifically, the 

Clean Air Act requires upwind states to submit infrastructure 

SIPs, including requirements to address interstate transport, 

within three years of promulgation of a new or revised NAAQS. 

Submission of interstate transport SIP requirements is one of 

the first chronological actions in NAAQS implementation. States 

are required to submit attainment plans for Moderate ozone 

nonattainment areas within 3 years of nonattainment designation, 

which normally comes two to three years after promulgation of a 

new or revised NAAQS. Marginal ozone nonattainment areas that 

 

which the EPA intends to finalize in the summer of 2016, further clarify the 

treatment of wildland fires under the Exceptional Events Rule.
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fail to meet their attainment deadlines and are reclassified as 

Moderate areas may be provided a new deadline upon 

reclassification to submit Moderate area plans. See CAA section 

182(i). Depending on the designations schedule, Moderate area

attainment plans would be due approximately 5 years after 

promulgation of a new or revised standards, i.e., 2 years after 

interstate transport SIPs, and plans for reclassified areas 

would follow even later. Commenters’ request that the EPA not 

evaluate upwind obligations until downwind controls have been 

evaluated is therefore unavailing under the statutory structure.

If states or the EPA waited until Moderate area attainment plans 

were due before requiring upwind reductions, then these upwind 

reductions would be delayed several years beyond the mandatory 

CAA schedule. Further, the CAA implementation timeline implies 

that requiring local reductions first would place an inequitable 

burden on downwind areas by requiring them to plan for 

attainment and maintenance without any upwind actions. Adhering 

to the CAA schedule provides that downwind areas are able to 

plan for attainment and maintenance while accounting for 

previously determined and quantified upwind actions.

Further, the commenters are incorrect in asserting that the 

EPA has not considered any local controls obligations at 

downwind receptors when quantifying upwind state emission 
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reductions. As described further in section VI, when evaluating 

air quality improvements at each level of control stringency, 

the EPA assumed that the downwind state home to an identified 

receptor would make emission reductions at an equivalent level 

of control stringency. While this final rule does not mandate 

any particular level of reductions in downwind states, the 

analysis to quantify upwind state reductions assumes that 

downwind states share responsibility for addressing identified 

air quality problems with the upwind states.

2. Focusing on 2017 for Analysis and Implementation

The EPA is aligning the analysis and implementation of this 

final rulemaking with the 2017 ozone season (May 1 – September 

30) in order to assist downwind states with timely attainment of 

the 2008 ozone NAAQS. On March 6, 2015, the EPA’s final 2008 

Ozone NAAQS SIP Requirements Rule71 revised the attainment 

deadline for ozone nonattainment areas currently designated as 

Moderate to July 20, 2018. The EPA established this deadline in 

the 2015 Ozone SIP Requirements Rule after previously 

establishing a deadline of December 31, 2018, which was vacated 

by the D.C. Circuit Court in Natural Resources Defense Council 

v. EPA.72 In order to demonstrate attainment by this deadline, 

 

71 80 FR 12264, 12268 (Mar. 6, 2015); 40 CFR 51.1103.

72 777 F.3d 456 (D.C. Cir. 2014).
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states will need to rely on design values calculated using ozone 

season data from 2015 through 2017, since the July 20, 2018 

deadline does not afford enough time for measured data of the

full 2018 ozone season. Therefore, consistent with the court’s 

instruction in North Carolina, the EPA has identified achievable 

upwind emissions reductions and aligned implementation of these 

reductions, to the extent possible, for the 2017 ozone season.

These 2017 reductions can positively influence air quality that 

would be used to demonstrate attainment. To the extent that 

ozone improvements in 2017 yield the 4th highest daily maximum 

8-hour average concentrations for all monitors in the area that 

are below the level of the 2008 ozone NAAQS, states can request 

a 1-year attainment date extension under CAA section 181(a)(5), 

as interpreted in 40 CFR 51.1107.

The EPA has therefore conducted its analyses of downwind 

air quality problems and upwind state contributions based on 

projections to the 2017 ozone season. The EPA also limits its 

assessment of NOX mitigation potential to those strategies that 

are feasible for the 2017 ozone season. This rulemaking also 

finalizes the 2017 ozone season as the initial control period 

for the finalized FIPs.

Comment: Several comments claimed that requiring reductions 

beginning with the 2017 ozone season does not provide sufficient 
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time to implement emission reductions for compliance with this 

rulemaking’s limitations on emissions.

Response: The EPA disagrees with these comments. In 

establishing its limitations on emissions (i.e., emission 

budgets and corresponding assurance levels), under the CSAPR 

Update rule the EPA explicitly took into account the fact that

only certain emission reduction strategies can be implemented 

for the 2017 ozone season. Specifically, the agency considered

activities that may be implemented quickly, such as turning on 

and optimizing existing SCR at power plants. The emission 

budgets are thus calculated to reflect only those activities 

that can be implemented by the 2017 ozone season.73 Further, the 

CSAPR Update rule provides regulated entities the ability to 

comply by means of the CSAPR limited interstate trading program, 

which gives flexibility in compliance and does not require any 

specific action for compliance at any specific facility, other 

than holding allowances to cover emitted tons of pollution.

Within this allowance trading program, the EPA also facilitates 

compliance by carrying over some banked allowances that can be 

used for compliance with the CSAPR Update, starting in 2017.

 

73 This is true with one exception. The EPA finds that for Arkansas it is 

reasonable to delay EGU NOX reduction potential for certain new combustion 

controls until 2018 and therefore gives Arkansas a 2017 budget that does not 

reflect these controls and a 2018 budget that does reflect these controls.

This issue is discussed further in Section VI.
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More information about compliance feasibility is provided in 

section VII. Additionally, the EPA provides an EGU NOX Mitigation 

Strategies Final Rule TSD, which is found in the docket for this 

final rule that further discusses the feasibility of complying 

with this rule’s emissions requirements. 

3. The CSAPR Framework

The original CSAPR used a four-step framework to address 

the requirements of the good neighbor provision for the 1997 

ozone NAAQS and the 1997 and 2006 PM2.5 NAAQS.74 The EPA is

following the same CSAPR framework in this CSAPR Update to 

identify and address the requirements of the good neighbor 

provision with respect to the newer 2008 ozone NAAQS. By 

applying the CSAPR framework with respect to the newer 2008 

ozone NAAQS, the EPA is using an approach that is informed by 

public comment on the original CSAPR rulemaking and has been 

reviewed in litigation by the D.C. Circuit Court of Appeals and 

the Supreme Court. The four steps are: (1) identifying downwind 

receptors that are expected to have problems attaining or 

maintaining clean air standards75 (i.e., NAAQS); (2) determining 

which upwind states contribute to these identified problems in 

 

74 See CSAPR, Final Rule, 76 FR 48208 (August 8, 2011).

75 As noted in section IV, the term maintenance used under the CSAPR framework 

is distinct from the term as applied the plan required of nonattainment areas 

redesignated to attainment.
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amounts sufficient to “link” them to the downwind air quality 

problems; (3) for states linked to downwind air quality 

problems, identifying upwind emissions that significantly 

contribute to nonattainment or interfere with maintenance of a 

standard; and (4) for states that are found to have emissions 

that significantly contribute to nonattainment or interfere with 

maintenance of the NAAQS downwind, reducing the identified 

upwind emissions through regional emission allowance trading 

programs. The following subsections include summaries of the 

four steps and comments and responses on the application of the 

CSAPR framework from the proposal.

a. Step 1. In the original CSAPR, downwind air quality problems

were assessed using modeled future air quality concentrations 

for a year aligned with attainment deadlines for the NAAQS

considered in that rulemaking. The assessment of future air 

quality conditions generally accounts for on-the-books emission 

reductions76 and the most up-to-date forecast of future emissions

in the absence of the transport policy being evaluated (i.e., 

base case conditions). The locations of downwind air quality 

problems are identified as those with monitors that are

projected to be unable to attain (i.e., nonattainment receptor)

 

76 Since CSAPR was designed to replace CAIR, CAIR emissions reductions 

were not considered “on-the-books.”
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or maintain (i.e., maintenance receptor) the standard. This 

final rule follows this same general approach. However, in this 

rule, the EPA also considers current monitored air quality data 

to further inform the projected identification of downwind air 

quality problems for this final rule. The proposed CSAPR Update 

put forward this change from the original CSAPR approach and 

commenters generally supported consideration of monitoring data. 

Further details and application of step one are described in 

section V of this rulemaking.

Comment: Some commenters challenged the methodology 

proposed by the EPA to identify maintenance receptors in the 

step 1 analysis. Commenters contend that maintenance receptors 

for purposes of the CSAPR Update analysis should only be 

identified as those areas that were previously designated 

nonattainment. The commenters explain that the proposed 

methodology for identifying maintenance receptors is 

inconsistent with how the statute defines maintenance areas in 

section 175A of the CAA. Other commenters contend that the EPA 

should not identify an area as a maintenance receptor where the 

area currently measures clean data. The commenters are concerned 

that it is arbitrary and capricious to treat clean data 

differently with respect to identifying nonattainment receptors 

and maintenance receptors.
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Response: The EPA does not agree with the commenters’ 

contention that it may only identify maintenance receptors as 

those areas that were once designated nonattainment. Such an 

interpretation would be contrary to the statutory process for 

SIP development. Area designations occur two to three years 

after promulgation of a new or revised NAAQS pursuant to CAA 

section 107(d)(1)(B)(i). State SIP submissions pursuant to CAA 

section 110(a)(1) and (2), including good neighbor SIPs, are 

also due three years after promulgation of a new or revised 

NAAQS. Attainment plans for those areas designated nonattainment 

are due between 18 months and 4 years after designation, 

depending on the pollutant, pursuant to the requirements of 

subpart D of title I of the CAA. Re-designations, including 

application of the requirements of CAA section 175A to develop a 

maintenance plan, by definition, occur after the initial 

designation and frequently well after the development and 

submission of the state’s attainment plan. 

Given that the statutory timeframe for development of the 

good neighbor SIP requires submission before the downwind 

state’s development of an attainment plan, before an area is 

likely to be re-designated from nonattainment to attainment 

(with the attendant maintenance plan obligations), and in some 

cases before or at the same time designations for a new or 
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revised standard might be finalized, the EPA does not believe it 

is reasonable to interpret the good neighbor provision to make 

states’ emission reduction obligations dependent on either 

current or prior designations of downwind areas with potential 

air quality problems in other states. While circumstances 

related to implementation of the 2008 ozone NAAQS (described in 

more detail earlier) led many states to delay submission of good 

neighbor SIPs addressing that standard and while the EPA is, in 

this case, addressing its FIP obligation many years after 

designations were finalized, these circumstantial factors do not 

revise the Congressional intent inherent in the statutory 

structure just described.

Moreover, section 110(a)(1) instructs states to submit 

plans that provide for the “implementation, maintenance, and 

enforcement” of the NAAQS. Nothing in the provision indicates 

that states need only address maintenance of air quality in 

those areas that were once formally designated nonattainment as 

to a particular NAAQS. Therefore, where CAA section 

110(a)(2)(D)(i)(I) instructs state plans to prohibit emissions 

activity within the state which will “interfere with 

maintenance” of the NAAQS in any other state, this provision is 

logically read consistent with section 110(a)(1) to require 

upwind states to address the maintenance of the NAAQS in all 
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areas downwind. In this respect, the EPA does not agree with 

commenters that its identification of maintenance receptors for 

purposes of the good neighbor provision is constrained by the 

applicability of the provisions in CAA section 175A. Although 

the statute invokes the word “maintenance” in that provision to 

describe the requirements for maintenance plans that apply in 

areas that have been re-designated from nonattainment to 

attainment, the good neighbor provision neither implicitly nor 

explicitly indicates that a state’s evaluation of whether it 

interferes with maintenance in another state should be limited 

to evaluation of areas subject to the requirements of section 

175A. 

Regardless of designation, any area may violate the NAAQS 

if emissions affecting air quality in that area are not 

adequately controlled. The court in North Carolina was 

specifically concerned with such areas when it rejected the view 

that “a state can never ‘interfere with maintenance’ unless the 

EPA determines that at one point it ‘contribute[d] significantly 

to nonattainment.’” 531 F.3d at 910. The court pointed out that 

areas barely attaining the standard due in part to emissions 

from upwind sources would have “no recourse” pursuant to such an 

interpretation. Id. Accordingly, the court instructed the EPA to 

give “independent significance” to the maintenance prong of CAA 
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section 110(a)(2)(D)(i)(I) by separately identifying such 

downwind areas for purposes of defining states’ obligations 

pursuant to the good neighbor provision.

In areas that are currently measuring clean data with 

respect to the 2008 ozone NAAQS, these measurements can be 

driven by a number of factors, including recent meteorology that 

is not conducive to ozone formation. Due to the variable nature 

of meteorology, the fact that such areas are currently attaining 

the standard does not address whether the areas might struggle 

to maintain the standard in the future, which was precisely the 

issue raised in North Carolina. The EPA’s approach to defining 

maintenance receptors directly responds to these concerns raised 

by the D.C. Circuit in North Carolina. Thus, although the EPA 

has considered recent monitored data for purposes of identifying 

nonattainment receptors in this rulemaking, it does not believe 

the data should inform the agency’s identification of 

maintenance receptors.

b. Step 2. The original CSAPR used a screening threshold of one 

percent of the NAAQS77 to identify upwind states that were 

“linked” to downwind air pollution problems. States were 

identified as needing further evaluation for actions to address 

 

77 See section IV.B for a discussion of the Supreme Court’s consideration of 

the one percent threshold.
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transport if their air quality impact was greater than or equal 

to one percent of the NAAQS for at least one downwind problem 

receptor (i.e., nonattainment or maintenance receptor identified 

in step 1). For ozone, the impacts include those from total 

emissions within the state of anthropogenic volatile organic 

compounds (VOC) and NOX from all sectors. The EPA evaluated a 

given state’s contribution based on the average relative 

downwind impact calculated over multiple days. States whose air 

quality impacts to all downwind problem receptors were below 

this threshold did not require further evaluation for actions to 

address transport — that is, these states were determined to 

make insignificant contributions to downwind air quality 

problems and therefore have no emission reduction obligations 

under the good neighbor provision. The EPA used this threshold 

because it determined that much of the ozone nonattainment 

problem in the eastern half of the United States results from

collective impacts of relatively small contributions from a 

number of upwind states. Use of the one percent threshold for 

CSAPR is discussed in the preambles to the proposed and final 

CSAPR rules. See 75 FR 45237 (Aug. 2, 2010); 76 FR 48238 (Aug. 

8, 2011). 

The EPA is using the same approach for identifying states 

that are linked to downwind nonattainment and maintenance 
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receptors in this final rule because the EPA’s analysis shows 

that much of the ozone nonattainment problem being addressed by 

this rule is still the result of the collective impacts of 

relatively small contributions from many upwind states.

Therefore, application of a uniform threshold helps the EPA to 

identify those upwind states that should share responsibility 

for addressing the downwind nonattainment and maintenance 

problem to which they collectively contribute. Continuing to use 

one percent of the NAAQS as the screening metric to evaluate 

collective contribution from many upwind states also allows the 

EPA (and states) to apply a consistent framework to evaluate 

interstate emission transport under the “good neighbor” 

provision from one NAAQS to the next. Accordingly, the EPA has 

applied an air quality screening threshold calculated as one 

percent of the 2008 ozone NAAQS, 0.75 ppb, to identify those 

states “linked” to downwind nonattainment and maintenance 

receptors with respect to the 2008 ozone NAAQS which require 

further analysis to identify potential emission reductions.

Consistent with the EPA’s findings in the original CSAPR, the 

agency has determined that states with contributions to all 

downwind nonattainment and maintenance receptors below this 

threshold make insignificant contributions to downwind air 

quality problems and therefore have no emission reduction 
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obligations under the good neighbor provision with respect to 

the 2008 ozone NAAQS. Application of step 2 is described in 

section V.

Comment: Some commenters supported the continued use of an 

air quality screening threshold of one percent of the NAAQS to 

identify upwind states requiring further analysis. However, some 

commenters opposed the use of the proposed one percent threshold 

because the commenters claim that the EPA had not technically 

demonstrated that continued use of the one percent screening 

metric is appropriate for linking an upwind state to a downwind 

nonattainment or maintenance receptor with respect to the 2008 

ozone NAAQS. Some commenters believed that use of the one 

percent threshold was too stringent given that the proposed rule 

only focuses on emission reductions from one sector, EGUs. Other 

commenters believed that one percent (0.75 ppb) was not 

stringent enough, and they recommended using a lower value such 

as 0.5 ppb.

Response: The EPA continues to believe that it is 

appropriate to use a threshold of one percent of the NAAQS for 

identifying states which merit further analysis to determine if 

emission reductions may be warranted. The EPA has consistently 

determined in past analyses conducted for the NOX SIP Call, CAIR,

and CSAPR that ozone nonattainment problems generally result 
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from relatively small contributions from many upwind states, 

along with contributions from in-state sources and in some 

cases, substantially larger contributions from a subset of 

particular upwind states78.

The EPA determined that it is appropriate to use a low

air quality threshold when analyzing states’ collective 

contributions to downwind nonattainment and maintenance for 

ozone as well as PM2.5.

To further support the EPA’s evaluation of the appropriate

screening threshold to use for this purpose, the EPA compiled

the contribution modeling results from the air quality modeling 

conducted for this rule in order to analyze the impact of 

different possible thresholds. The EPA notes that similar 

contribution modeling data were available for comment in the 

docket for the proposed CSAPR Update. This compiled analysis 

demonstrates the reasonableness of continuing to use one percent 

as an air quality threshold to account for the combined impact 

of relatively small contributions from many upwind states. See

the Air Quality Modeling Technical Support Document for the 

Final Cross-State Air Pollution Rule Update (AQM TSD). For each 

of the ozone receptors identified in the final CSAPR Update rule 

 

78 See NOX SIP Call, 63 FR 57356, 57375-377 (October 27, 1998); CAIR, 70 FR 

25162, 25172 & 25186 (May 12, 2005); CSAPR, 76 FR 48208, 48236-237 (August 8, 

2011)
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analysis, the EPA identified: (1) the total upwind state 

contributions, and (2) the amount of the total upwind state 

contribution that is captured at one percent, five percent, and

half (0.5) percent of the NAAQS. The EPA continues to find that 

the total collective contribution from upwind states’ sources 

represent a significant portion of the ozone concentrations at 

downwind nonattainment and maintenance receptor locations. This 

analysis shows that the one percent threshold generally captures 

a substantial percentage of the total pollution transport 

affecting downwind states without also implicating states that 

contribute insignificant amounts. 

In response to commenters who advocated for a lower 

threshold, the EPA observes that the analysis shows that a lower 

threshold would result in relatively modest increases in the 

overall percentage of ozone pollution transport captured 

relative to the amounts captured at the one percent level at a 

majority of the receptors. A lower percent threshold could lead 

to emission reduction responsibilities in additional states that 

individually have a relatively small impact on those receptors, 

compared to other upwind states — an indicator that emission 

controls in those states are likely to have a smaller air 

quality impact at the downwind receptor.
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In response to commenters who advocated for a higher

threshold, the EPA observes that the analysis of a 5 percent

threshold shows that a higher threshold would result in a 

relatively large reduction in the overall percentage of ozone 

pollution transport captured relative to the amounts captured at 

the one percent level at a majority of the receptors. In fact, 

at a 5 percent threshold there would not be any upwind states 

linked to the nonattainment and maintenance receptors in Texas.

As a result of our analyses of higher and lower thresholds, 

as described in the AQM TSD, the agency is not convinced that 

selecting a threshold below one percent or above one percent is 

necessary or desirable. 

Comment: Some commenters suggested more specifically that 

a 0.5 ppb threshold would be more appropriate for upwind states

contributing to downwind receptors in Texas. The commenters note 

that the lower threshold will add more states in the rule and 

address more of the maximum combined upwind state impacts to 

Texas’ receptors. 

Response: The EPA agrees that a lower threshold of 0.5 ppb 

would capture more of the upwind states that contribute to Texas 

receptors. However, the contribution of upwind state interstate 

transport to receptors in Texas is less than the upwind state 

interstate transport contribution identified for other downwind 
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nonattainment and maintenance receptors in this rule. Therefore, 

the potential ozone reductions that would result from including 

additional upwind states are relatively small. The EPA believes 

it is therefore reasonable to use a uniform threshold for all 

states included in this rule.

c. Step 3. For states that are linked in step 2 to downwind air 

quality problems, the original CSAPR evaluated emission 

reductions available in upwind states by application of uniform 

levels of control stringency, represented by cost. The EPA 

evaluated NOX reductions that were available in upwind states by 

applying uniform levels of control stringency to entities in 

these states. For each uniform level of control stringency 

evaluated, the EPA used a multi-factor test to evaluate cost, NOX

reduction potential, and downwind air quality impacts. This

multi-factor test was used to select a uniform level of control 

stringency on the remaining allowable emissions – those 

available after reducing significant contribution to 

nonattainment or interference with maintenance of a NAAQS 

downwind. The use of uniform control stringency also reasonably 

apportions upwind responsibility among linked upwind states. 
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This approach was upheld by the Supreme Court in EPA v. EME 

Homer City Generation.79

In this final rule, the EPA applies this approach to 

establish EGU NOX emission budgets that reflect NOX reductions 

necessary to reduce interstate ozone transport for the 2008 

NAAQS. In this process, the EPA also explicitly evaluates 

whether the budget quantified for each state would result in 

over-control, as required by the Supreme Court and the D.C. 

Circuit.80 Specifically, the multi-factor test is used to 

evaluate whether an upwind state is linked solely to downwind 

air quality problems that are resolved at a given uniform 

control stringency, or if upwind states reduce their emissions 

at a given uniform control stringency such that contributions 

from sources in the state no longer meet or exceed the one 

percent air quality contribution threshold. This evaluation of 

cost, NOX reductions, and air quality improvements, including 

consideration of potential over-control, results in the EPA’s 

quantification of upwind emissions that significantly contribute 

to nonattainment or interfere with maintenance of the 2008 ozone 

NAAQS downwind. The EPA’s assessment of significant contribution 

to nonattainment or interference with maintenance of the 2008 

 

79 EPA v. EME Homer City Generation, L.P., 134 S. Ct. at 1606-07.

80 Id. at 1608; EME Homer City II, 795 F.3d at 127.
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ozone NAAQS and our development of EGU NOX ozone season emission 

budgets is described in section VI of this notice.

Comment: Some commenters claim that the CSAPR framework 

requires the same remedy for states linked solely to maintenance 

receptors as it does for states linked to nonattainment 

receptors and these commenters suggested that states linked 

solely to maintenance problems should have a different, less 

stringent requirement. These commenters contend that, as a 

result, the EPA has failed to given independent significance to 

the “interfere with maintenance” clause of CAA section 

110(a)(2)(D)(i)(I) as compared to the “significant contribution” 

clause of that provision. The commenters contend that it 

constitutes over-control to impose budgets based on the same 

uniform control stringency to address both states that interfere 

with maintenance of the NAAQS in downwind states and those that 

significantly contribute to nonattainment in downwind states. 

The commenters cite the Supreme Court’s opinion in EPA v. EME 

Homer City Generation, explaining that the EPA may only limit 

emissions “by just enough to permit an already-attaining State 

to maintain satisfactory air quality.” 134 S.Ct. at 1604 n.18.

Response: The EPA disagrees with these comments. The CSAPR 

framework gives independent meaning to the “maintenance” prong 

of CAA section 110(a)(2)(D)(i)(I) as required by D.C. Circuit’s 
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decision in North Carolina. By identifying those downwind areas 

that are at risk of exceeding the NAAQS if historical 

meteorology conducive to ozone formation occurs again, the EPA 

thereby defines upwind states linked to these area as having a 

transport obligation.81 In its decision, on remand from the 

Supreme Court, the D.C. Circuit confirmed that the EPA’s 

approach to identifying maintenance receptors in CSAPR comported 

with the court’s prior instruction to give independent meaning 

to the “interfere with maintenance” prong in the good neighbor 

provision. EME Homer City II, 795 F.3d at 136. The EPA’s 

analysis indicates that the maintenance receptors identified in 

this rulemaking are at risk of NAAQS violations and therefore 

should be afforded protection. 

CAA section 110(a)(2)(D)(i)(I) requires that state 

implementation plans, or the EPA where such plans are 

insufficient, prohibit emissions which will interfere with 

maintenance of the NAAQS in downwind states. Once the EPA 

identifies maintenance receptors, the EPA is compelled by the 

CAA to prohibit emissions that would jeopardize the ability of 

 

81 531 F.3d 896, 910-911 (D.C. Cir. 2008) (noting that the EPA’s 

failure to separately address maintenance problems under CAIR 

“unlawfully nullifies that aspect of the statute and provides no 

protection for downwind areas that, despite the EPA's predictions, 

still find themselves struggling to meet NAAQS due to upwind 

interference”). 
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these receptors to maintain the standard. Put another way, it 

would be inconsistent with the CAA for the EPA to identify 

receptors that are at risk of NAAQS violations given certain 

conditions due to transported upwind emissions and then not 

prohibit the emissions that place the receptor at risk. 

Moreover, the Supreme Court has acknowledged that the 

“interfere with maintenance” clause of the good neighbor 

provision is ambiguous with respect to how the EPA should 

quantify and allocate the emission reduction obligations for 

states linked to downwind maintenance concerns. The Supreme 

Court clearly stated that “[n]othing in either clause of the 

Good Neighbor Provision provides the criteria by which EPA is 

meant to apportion responsibility.” EPA v. EME Homer City 

Generation, L.P., 134 S. Ct. at 1604 n.18 (emphasis in 

original). Thus, the EPA is afforded deference to develop an 

appropriate application of this requirement so long as it is a 

“permissible construction of the statute.” Chevron, U.S.A., Inc. 

v. NRDC, Inc., 467 U.S. 837, 843, 104 S. Ct. 2778, 2782 (1984). 

The Supreme Court held that it was a permissible interpretation 

of the statute to apportion responsibility for states linked to 

nonattainment receptors considering “both the magnitude of 

upwind States’ contributions and the cost associated with 

eliminating them.” EPA v. EME Homer City Generation, L.P., 134 
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S. Ct. at 1606. It is equally reasonable and permissible to use 

these factors to apportion responsibility among upwind states 

linked to maintenance receptors because the goal in both 

instances is to prohibit the “amounts” of pollution that will

either significantly contribute to nonattainment or interfere 

with maintenance of the NAAQS downwind. The EPA’s contribution 

analysis demonstrates that the amounts of pollution prohibited 

through implementation of the budgets finalized in this rule

will, under certain projected conditions, otherwise contribute 

to downwind nonattainment and interfere with maintenance of the 

2008 ozone NAAQS in downwind states. 

All of that being said, contrary to the commenters’ 

contention, the CSAPR framework does not necessarily dictate 

that upwind states linked solely to maintenance receptors be 

subject to the same level of NOX control stringency as upwind 

states linked to nonattainment receptors. Rather, the selection 

of NOX control stringency is in part informed by the difficulty 

of resolving the identified downwind air quality problem to 

which each state is linked. (See the components, including air 

quality considerations, of the multi-factor test described in 

section VI.D.)The data and analysis for the CSAPR Update show 

that the maintenance-only receptors generally represent less 

severe air quality problems than the nonattainment receptors. 
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Specifically, in the final CSAPR Update modeling, maintenanceonly receptors have an average maximum design value that is 1.9 

ppb above the 2008 ozone NAAQS while nonattainment receptors 

have an average maximum design value that is 3.1 ppb above the 

NAAQS. As described in section VI.D, the specific emission 

reduction obligation for each state is limited by the amount of 

air quality improvement needed to either attain or maintain the 

NAAQS at the particular receptor to which the state’s emissions 

are linked. These data therefore demonstrate that states linked 

to maintenance-only receptors would generally have a lesser 

emission reduction obligation than states linked to 

nonattainment receptors, but for the partial nature of this 

rule.

The original CSAPR rulemaking provides an example of this

differentiation of control stringency based on the severity of 

downwind air quality problems. In that rulemaking, some states 

reduced their significant contribution of SO2 for purposes of 

addressing downwind PM2.5 nonattainment and maintenance problems

at a lower uniform cost control stringency, while other states 

needed to comply with budgets calculated at a higher uniform 
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control stringency in order to resolve their transport 

obligations.82

In the case of a full solution, which EPA is not 

promulgating in this action, a similar differentiation in the 

level of control stringency may emerge between the upwind states 

linked solely to maintenance and the upwind states linked to 

nonattainment. However, given the unique circumstances of this 

rulemaking and the need to obtain emission reductions on a tight 

timeframe in order to assist downwind states with meeting the 

downwind 2018 attainment deadline, the EPA is only quantifying a 

subset of each state’s emission reduction obligation pursuant to 

the good neighbor provision. The EPA’s analysis shows that even 

when all the emission reductions required by this rule are in 

place, both attainment and maintenance problems at downwind 

receptors may remain, and the EPA will need to evaluate whether 

the upwind states’ emission reduction obligations should be more 

stringent considering other factors not addressed by this rule, 

including control strategies that can be implemented on a longer 

timeframe or by other source categories. Thus, the commenters 

are incorrect to state that the EPA is necessarily imposing the 

same remedy (in the form of the same level of control 

 

82 76 FR at 48257-259.
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stringency) for states linked only to maintenance-only receptors 

as those linked to nonattainment receptors by way of applying 

the CSAPR framework. It is only due to the partial nature of the 

remedy provided by this rule that the EPA is finalizing a single 

uniform level of control stringency for all CSAPR Update states. 

d. Step 4. Finally, the original CSAPR used allowance trading 

programs to implement the necessary emission reductions

represented by the emission budgets identified in step 3.

Emission allowances were issued to units covered by the trading 

program, and each covered unit can then retain and/or acquire 

however many allowances are needed to cover its ozone season NOX

emissions over the course of each control period; however, 

because the total number of allowances issued in each period is 

limited to the sum of the states’ emission budgets, total 

emissions across all affected EGUs are similarly limited such 

that overall emissions are controlled. Additionally, the 

original CSAPR included variability limits, which define the 

amount by which collective emissions within a state may exceed 

the level of that state’s budget in a given control period to 

account for variability in EGU operations while still ensuring 

that the necessary emission reductions are achieved in each 

state. The variability limits for the CSAPR NOX ozone season 

trading program is 21 percent of each state’s budget. CSAPR set 
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assurance levels equal to the sum of each state’s emission 

budget plus its variability limit. The original CSAPR included

assurance provisions that would require additional allowance 

surrenders in the instance that emissions in the state exceed 

the state’s assurance level. This limited interstate trading 

approach is responsive to previous court decisions.83 See

discussion in section VII of this preamble. The EPA is applying 

this same approach to implement reductions in interstate 

transport for the 2008 ozone NAAQS in the CSAPR Update.

Implementation of the CSAPR Update allowance trading program 

(CSAPR NOX ozone season Group 2) is described in section VII of 

this final rule. This new program is substantially similar to 

the existing CSAPR NOX ozone season program.

Comment: Some stakeholders have observed that a subset of

existing post-combustion EGU NOX controls (e.g., SCR) may not 

have operated in recent years because CAIR or CSAPR allowance 

prices were below the operating costs of the controls. These 

commenters suggest that, accordingly, CAIR or CSAPR did not 

achieve optimal environmental protection, as identified by 

requiring existing controls to operate. 

 

83 North Carolina, 531 F.3d at 907-08 (EPA “must include some assurance 

that it achieves something measurable towards the goal of prohibiting 

sources ‘within the State’ from contributing to nonattainment or 

interfering with maintenance in ‘any other State’.”).
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Response: Regional allowance trading programs set a limit 

on the overall amount of allowable emissions. This limit 

reflects a reduction from uncontrolled emission levels and 

compliance is demonstrated through an allowance trading program 

that allows regulated entities the flexibility to determine 

their own compliance path. In states that participated in both 

CAIR and CSAPR ozone season programs, summer NOX emissions 

dropped by 20 percent from 2009 to 2015, and compliance was 

demonstrated nearly 100 percent of the time due to rigorous 

emissions monitoring and allowance tracking. These outcomes, 

combined with air quality improvements, demonstrate the 

environmental achievements of these programs. The EPA notes that 

the allowance prices were low because of significant emission 

reductions that took place by other means (e.g., new lowemitting generating capacity coming online that replaced older,

higher emitting generation as well as EGU retirements). These 

other means significantly reduced emissions and helped the power 

sector meet the CAIR and CSAPR emission budgets without relying 

on the use of allowances. In light of these and other dramatic 

reductions in power sector pollution, the supply of CAIR and 

CSAPR allowances rose and their prices fell. In this case,

certain utilities appear to have turned off their emission 

controls, relying instead on purchased allowances. The EPA 
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notes, however, that in this case, the overall net effect of 

these activities has been a significant reduction in emissions.

The EPA expects that certain aspects of this final rule will 

alleviate some of these concerns about allowance prices. In 

particular, this action establishes new emission budgets to 

address the more stringent 2008 ozone NAAQS that are calculated 

based on a uniform cost that is reflective of, among other 

things, operating existing controls. See section VI in this 

preamble on EGU NOX reductions and emission budgets.

4. Partial versus Full Resolution of Transport Obligation

Given the unique circumstances surrounding the 

implementation of the 2008 ozone standard that have delayed 

state and the EPA’s efforts to address interstate transport, at 

this time the EPA is focusing its efforts on the immediately 

available and cost-effective emission reductions that are 

achievable by the 2017 ozone season.

This rulemaking establishes (or revises currently 

established) FIPs for 22 eastern states under the good neighbor 

provision of the CAA. These FIPs contain requirements for EGUs 

in these states to reduce ozone season NOX emissions beginning 

with the 2017 ozone season. As noted in section VI, the EPA has 

identified important EGU emission reductions that are costeffective and achievable by the 2017 ozone season in the covered 
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states through actions such as turning on and operating existing 

pollution controls. These readily available emission reductions 

will assist downwind states in attaining and maintaining the 

2008 ozone NAAQS and will provide human health and welfare 

benefits through reduced exposure to ground-level ozone 

pollution.

While these reductions are necessary to assist downwind 

states in attaining and maintaining the 2008 ozone NAAQS, and 

are necessary to address good neighbor obligations for these 

states, the EPA acknowledges that they may not be sufficient to 

fully address these states’ good neighbor obligations.84 With 

respect to the 2008 ozone standard, the EPA has generally not 

attempted to quantify the ozone season NOX reductions that may be 

necessary to eliminate all significant contribution to 

nonattainment or interference with maintenance in other states. 

Given the time constraints for implementing NOX reduction 

strategies, the EPA believes that implementation of a full 

remedy that includes emission reductions from EGUs as well as 

other sectors may not be achievable for 2017. However, a partial 

remedy is achievable for 2017 and therefore this rule focuses on 

these more immediately available reductions. 

 

84 The requirements for one state, Tennessee, will fully eliminate that 

state’s significant contribution to downwind air quality problems.
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To evaluate full elimination of a state’s significant 

contribution to nonattainment or interference with maintenance, 

non-EGU ozone season NOX reductions and further EGU reductions 

that are achievable after 2017 should be considered. The EPA did 

not quantify non-EGU emissions reductions to address interstate 

ozone transport for the 2008 ozone NAAQS at this time because: 

(1) there is greater uncertainty in the non-EGU emission 

inventory estimates than for EGUs; and (2) based on current 

knowledge, there appear to be few non-EGU reductions that could 

be accomplished by the beginning of the 2017 ozone season. This 

is discussed further in section VI. Commenters generally agreed 

with the EPA that non-EGU emission reductions are not readily 

available for the 2017 ozone season but advocated that such 

reductions should be included as appropriate in future 

mitigation actions. 

Because the reductions in this action are EGU-only and 

because the EPA has focused the policy analysis for this action 

on reductions available by the beginning of the 2017 ozone 

season, CSAPR update reductions will represent, for most states,

a first, partial step to addressing a given upwind state’s 

significant contribution to downwind air quality impacts for the 

2008 ozone NAAQS. Generally, a final determination of whether 

the EGU NOX reductions quantified in this rule represent a full 
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or partial elimination of a state’s good neighbor obligation for 

the 2008 NAAQS is subject to an evaluation of the contribution 

to interstate transport from non-EGUs and further EGU reductions 

that are achievable after 2017. However, the EPA believes that 

it is beneficial to implement, without further delay, EGU NOX

reductions that are achievable in the near term. The NOX emission 

reductions in this final rule are needed (although they may not 

be all that is needed) for these states to eliminate their 

significant contribution to nonattainment or interference with 

maintenance of the 2008 ozone NAAQS. 

Comment: Several commenters questioned whether the CAA 

authorizes the EPA to implement a “partial” remedy, and also 

suggested that the partial nature of the proposed rule might 

“circumvent” prior courts’ instructions regarding over-control. 

Those commenters note that the statute does not describe a 

process for issuing a partial FIP, and suggest that the EPA may 

only issue a FIP that fully eliminates transported contribution 

from upwind States. These commenters also imply that the Supreme 

Court’s approval of the EPA’s use of costs in defining 

“significant contribution” in EME Homer City does not apply to 

the agency’s approach in this rule because the commenters claim 

that “CSAPR was a transport rule that developed comprehensive 

state budgets [and][t]his proposed rule only addresses EGUs.” 
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Other commenters were concerned that the EPA is not meeting 

its statutory obligation to develop federal implementation plans 

that fully resolve downwind transport problems. These commenters 

argue that the EPA’s own delay in preparing a rule to resolve 

interstate transport with respect to the 2008 ozone NAAQS caused 

the tight timeline now faced by the agency, and cannot be used 

as an excuse for failing to promulgate a full remedy by 2017. In 

the alternative, commenters argue that even if time constraints 

only allow the EPA to impose a partial remedy by the 2017 ozone 

season, the agency must provide a plan now for how it will 

achieve the rest of the necessary reductions in the future, and 

suggests the agency could do so by implementing a second 

implementation phase to go into effect after the 2017 ozone 

season.

Response: The EPA disagrees with commenters who suggest 

that the agency lacks authority to promulgate a partial FIP. As 

described in section III, the EPA’s current statutory deadlines 

to promulgate FIPs extend until 2017 and 2018 for most states, 

and the EPA will remain mindful of those deadlines as it 

evaluates what further steps may be necessary to fully address 

interstate transport for the 2008 ozone NAAQS. 

Nothing in section 110(c)(1) of the CAA suggests that the 

agency is barred from taking a partial step at this time (before 
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its FIP deadline has passed), nor does the statutory text 

indicate Congress’ intent to preclude the EPA from tackling this 

problem in a step-wise process. The D.C. Circuit has held on 

numerous occasions that agencies have the authority to tackle 

problems in an incremental fashion, particularly where a lack of 

resources or technical expertise make it difficult to 

immediately achieve the statute’s full mandate. See, e.g., Grand 

Canyon Air Tour Coal. v. FAA, 154 F.3d 455, 478 (D.C. Cir. 

1998); City of Las Vegas v. Lujan, 891 F.2d 927, 935 (D.C. Cir. 

1989) (“‘[A]gencies have great discretion to treat a problem 

partially ...’ [and a] court will not strike down agency action 

‘if it were a first step toward a complete solution.’”); Gen’l 

Am. Transp. Corp. v. ICC, 872 F.2d 1048, 1059 (D.C. Cir. 1989); 

Nat’l Ass’n of Broadcasters v. FCC, 740 F.2d 1190, 1209-14 (D.C. 

Cir. 1984). 

As explained previously, the EPA expects that a full 

resolution of upwind transport obligations would require 

emission reductions from sectors besides EGUs, including nonEGUs, and further EGU reductions that are achievable after 2017.

Given the approaching July 2018 attainment deadline for the 2008 

ozone NAAQS, developing a rule that would have covered

additional sectors and emission reductions on longer compliance 

schedules would have required more of the EPA’s resources over a 
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longer rulemaking schedule to fully address. As discussed 

earlier in this notice, the EPA is still in the process of 

developing information regarding available emission reductions 

from non-EGUs. Had the EPA waited to promulgate FIPs until that 

information was fully developed, we could not have assured 

emission reductions by 2017, in time to assist downwind states 

to meet the July 2018 attainment deadline. Accordingly, the EPA 

reasonably concluded that it was most prudent to promulgate a 

first step to address interstate transport for the 2008 ozone 

NAAQS that achieves those immediate reductions while addressing 

any remaining obligation that might be achievable on a longer 

timeframe in a separate rulemaking. The EPA intends to continue 

to collect information and undertake analyses for potential 

future emission reductions at non-EGUs that may be necessary to 

fully quantify states’ interstate transport obligations in a 

future action.

The EPA further disagrees with commenters that its partial 

step here runs afoul of the Supreme Court and D.C. Circuit’s 

instructions to avoid unnecessary over-control of upwind state 

emissions. As acknowledged by these commenters, due to its 

limited nature, this final action does not generally fully 

resolve downwind air quality problems, much less result in overcontrol of upwind state emissions relative to those air quality 
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problems. See section VI for further discussion of the EPA’s 

over-control analysis applied to address these courts’ concerns. 

To the extent the EPA determines that it must require additional 

emission reductions in a later rulemaking to address interstate 

transport with respect to the 2008 ozone NAAQS, the EPA will 

also confirm that such reductions do not result in unnecessary 

over-control, consistent with the courts’ instructions.

The EPA also disagrees that the Supreme Court’s 

affirmation of its use of uniform control stringency to define 

significant contribution does not apply equally to this action. 

The commenters are mistaken insofar as they suggest that the 

original CSAPR regulated sources other than EGUs. This rule is 

identical to the original CSAPR rule in terms of the form of its 

remedy – an emission budget issued to each state, with 

allowances allocated to EGUs within the state. As in the 

original CSAPR, each state is free to submit a SIP to replace 

the FIP indicating that it will meet its emission budget via 

reductions from other sectors.

Furthermore, the EPA took a similar partial approach in 

quantifying interstate transport obligations with respect to the 

1997 ozone NAAQS in the original CSAPR rulemaking. In that rule, 

the EPA’s modeling indicated that there would be persistent 

nonattainment and maintenance problems at some receptors even 
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after imposition of CSAPR’s emission reductions. The EPA stated 

that, because additional emission reductions may be available at 

higher cost thresholds and from other sectors, such as non-EGUs, 

the emission reductions quantified in the rule did not 

necessarily fully quantify certain states’ interstate transport 

obligation with respect to the 1997 ozone NAAQS.85 Therefore, for 

states linked to those receptors, the agency concluded that its 

FIP provided a partial remedy, and that more emission reductions 

might be required in order to fully satisfy the states’ 

transport obligations. As discussed later, this action now 

concludes that the EPA has fulfilled its FIP obligation with 

respect to the 1997 ozone NAAQS.

Finally, the EPA disagrees with commenters who suggest that 

the agency’s “own delay” in implementing a transport rule to 

address the 2008 ozone NAAQS led to the current circumstances 

the states and the EPA now face. Until mid-2014 when the Supreme 

Court reversed the D.C. Circuit’s original vacatur of CSAPR, the 

governing judicial holding was that the EPA lacked legal 

authority to promulgate any FIP addressing 2008 ozone transport 

obligations until the agency first quantified each state’s 

emission reduction obligation, allowed states time to submit 

 

85 76 FR 48208, 48256-57 (August 8, 2011).
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SIPs, and acted on those SIPs.86 In July 2015, the D.C. Circuit 

issued its final decision generally upholding CSAPR, albeit 

subject to remand without vacatur of certain state budgets for 

reconsideration. The agency then proceeded on an expedited basis 

to issue a proposal to address its FIP obligation with respect 

to the 2008 ozone NAAQS in the fall of 2015. While commenters 

and the EPA may agree that it would be best if a full remedy 

could be possible by the 2017 ozone season such that downwind 

areas would receive those benefits in time for their Moderate 

area attainment deadlines, such a remedy simply is not feasible 

in the existing timeframe.

As noted previously, CAA section 110(c)(1) directs the EPA 

to promulgate a FIP “at any time within two years” of its 

disapproval or finding of failure to submit. For the majority of 

states affected, that timeframe will not end until 2017 or 

later, and as mentioned previously, North Carolina compels the 

EPA to identify upwind reductions and implementation programs to 

achieve these reductions by the 2017 ozone season. As the EPA 

has explained, it believes that reductions from other sectors 

besides EGUs should be evaluated in developing a full remedy, 

and the agency does not have sufficient information at this time 

 

86 EME Homer City Generation, L.P. v. EPA, 696 F.3d 7, 31 (D.C. Cir. 

2012).
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to promulgate such a rule. Therefore, given these circumstances, 

the agency maintains that only requiring at this time necessary 

and achievable reductions by the 2017 ozone season is 

reasonable.

5. Why Focus on Eastern States

The final CSAPR Update focuses on collective contributions 

of ozone pollution from states in the east. In this action, the 

EPA is not addressing interstate emission transport in this 

action for the 11 western contiguous United States.87 The CSAPR 

framework builds on previous eastern-focused efforts to address 

collective contributions to interstate transport, including the 

NOX Budget Trading Program, CAIR, and the original CSAPR 

rulemaking. However, for western states, the EPA believes that 

there may be geographically specific factors to consider in 

evaluating interstate ozone pollution transport. Accordingly, 

given the need for near-term 2017 analysis and implementation of 

the CSAPR Update FIPs, the EPA focused this rulemaking on 

eastern states where the CSAPR method for assessing collective 

contribution has proven effective. 

 

87 For purposes of this action, the western U.S. (or the West) consists 

of the 11 western contiguous states of Arizona, California, Colorado, 

Idaho, Montana, New Mexico, Nevada, Oregon, Utah, Washington, and 

Wyoming.
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The EPA did not propose CSAPR Update FIPs to address 

interstate emission transport for western states and it is not 

finalizing FIPs for any of these states. However, the EPA notes 

that western states are not relieved of their statutory 

obligation to address interstate transport under the section 

110(a)(2)(D)(i)(I). The EPA and western states, working 

together, are continuing to evaluate interstate transport 

obligations on a case-by-case basis. The EPA will fulfill its 

backstop role with respect to issuing FIPs for western states if 

and when that becomes necessary. The EPA notes that a 2-year FIP 

clock has started for New Mexico and California following the 

July 13, 2015 finding of failure to submit. The EPA notes that 

analyses developed to support this rule, including air quality 

modeling and the EPA’s assessment of EGU NOX mitigation 

potential, contain data that can be useful for western states in 

developing SIPs. The data from these analyses are available in 

the docket for this rulemaking.88

The proposed CSAPR Update solicited comment on whether to 

promulgate FIPs to address interstate ozone transport for the 

2008 ozone NAAQS for western states, either in this rulemaking 

 
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or in a subsequent rulemaking. Most commenters generally agreed 

with the EPA’s proposal to exclude western states in this rule

given that there may be geographically specific factors to 

consider in evaluating western states’ interstate transport 

requirements. 

6. Short-Term NOX Emissions

In eastern states, the highest measured ozone days tend to 

occur within the hottest days or weeks of the summer. There 

tends to be a higher demand for electricity (for instance, to 

power air conditioners) on hotter days and with this increased 

power demand, ozone formation can increase causing peak ozone 

days. In discussions with representatives and officials of 

eastern states in April 2013 and April 2015, and in several 

letters to the EPA, officials from states that are part of the 

Ozone Transport Region (OTR)89 states suggested that EGU 

emissions transported from upwind states may disproportionally 

affect downwind ozone concentrations on peak ozone days in the 

eastern U.S. These representatives asked that the EPA consider 

additional peak day limits on EGU NOX emissions. 

 

89 The OTR was established by the CAA amendments of 1990 to facilitate 

addressing the ozone problem on a regional basis and consists of the 

following states, or portions thereof: Connecticut, Delaware, Maine, 

Maryland, Massachusetts, New Hampshire, New Jersey, New York, 

Pennsylvania, Rhode Island, Vermont, the District of Columbia and 

northern Virginia. 42 U.S.C. 7511c, CAA section 184.
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Comment: The proposed CSAPR Update took comment on whether 

or not short-term (e.g., peak-day) EGU NOX emissions 

disproportionately impact downwind ozone concentrations and, if 

they do, what EGU emission limits would be reasonable 

complements to the seasonal CSAPR requirement. Most commenters 

requested that the EPA not impose a short-term limit at this 

time. 

Response: As noted previously,90 the EPA finds that NOX ozone 

season trading programs are effective at reducing peak ozone 

concentrations, and the agency is therefore continuing with a 

seasonal approach in this final rule. The EPA will continue to 

look at this matter with an eye towards future rulemakings.

C. Responding to the Remand of CSAPR NOX Ozone Season Emission 

Budgets

As noted previously, in EME Homer City II, the D.C. Circuit 

declared invalid the CSAPR phase 2 NOX ozone season emission 

budgets of 11 states, holding that those budgets over-control 

with respect to the downwind air quality problems to which those 

states were linked for the 1997 ozone NAAQS. 795 F.3d at 129-30, 

138. As to ten of these states, the court held that the EPA’s 

2014 modeling conducted to support the RIA for CSAPR 

 

90 See Section IV.A.1
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demonstrated that air quality problems at the downwind locations 

to which those states were linked would resolve by phase 2 of 

the CSAPR program without further transport regulation (either 

CAIR or CSAPR). Id. at 129-30. With respect to Texas, the court 

held that the record reflected that the ozone air quality 

problems to which the state was linked could be resolved at a 

lower cost threshold. Id. The court therefore remanded those 

budgets to the EPA for reconsideration consistent with the 

court’s opinion. Id. at 138. The court instructed the EPA to act 

“promptly” in addressing these issues on remand. Id. at 132.

The court’s decision explicitly applies to 11 state budgets 

involved in that litigation: Florida, Maryland, New Jersey, New 

York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, 

Virginia, and West Virginia. Id. at 129-30, 138. The EPA is 

finalizing FIPs for eight of those states to address interstate 

transport with respect to the 2008 ozone NAAQS: Maryland, New 

Jersey, New York, Ohio, Pennsylvania, Texas, Virginia, and West 

Virginia. The FIPs incorporate revised emission budgets that

replace the budgets promulgated in the CSAPR rule to address the 

1997 ozone NAAQS, the same budgets remanded by the D.C. Circuit 

for reconsideration. Further, in this rule, these budgets will

be effective for the 2017 ozone season, the same period in which 

the phase 2 budgets that were invalidated by the court are 
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currently scheduled to become effective. Therefore, this action 

provides an appropriate and timely response to the court’s 

remand by replacing the phase 2 budgets promulgated in the CSAPR 

to address the 1997 ozone NAAQS, which were declared invalid by 

the D.C. Circuit, with budgets developed to address the revised 

and more stringent 2008 ozone NAAQS.91

For the three remaining original CSAPR ozone season states 

affected by this portion of the EME Homer City II decision, 

Florida, North Carolina, and South Carolina, the EPA is not 

finalizing FIPs because the EPA’s analysis performed to support 

the final rule does not indicate that these states are linked to 

any identified downwind nonattainment or maintenance receptors 

with respect to the 2008 ozone standard. Because the 2008 ozone 

NAAQS is more stringent than the 1997 ozone NAAQS, this modeling 

necessarily indicates that Florida, North Carolina, and South 

Carolina are also not linked to any remaining air quality 

concerns with respect to the 1997 ozone standard for which the 

states were regulated in the original CSAPR. Accordingly, in 

order to address the Court’s remand with respect to these three 

 

91 The methodology for developing the budgets to address the 2008 ozone 

NAAQS is described in more detail in Sections VI and VII in this 

preamble. Section VI also includes an evaluation, as instructed by the 

court in EME Homer City II, to affirm that the budgets do not overcontrol with respect to downwind air quality problems identified in 

this rule. 795 F.3d at 127-28.
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states’ interstate transport responsibility under the 1997 ozone 

standard, the EPA is removing these states from the CSAPR ozone 

season trading program beginning in 2017 when the phase 2 ozone 

season emission budgets were scheduled to be implemented.92

Comment: Some commenters contend that the D.C. Circuit’s 

remand of the phase 2 ozone season emission budgets in EME Homer 

City II requires the EPA to calculate new budgets to address the 

states’ transport obligations with respect to the 1997 ozone 

NAAQS. These commenters contend that the EPA has not fully 

responded to the court’s remand until it quantifies new budgets.

Response: As described earlier, the D.C. Circuit remanded 

10 of CSAPR’s ozone season NOX budgets because the EPA’s 2014 

modeling conducted to support the RIA for CSAPR demonstrated 

that air quality problems at the downwind locations to which 

those states were linked would resolve by phase 2 of the CSAPR 

 

92 One other state from the original CSAPR rulemaking, Georgia, was also not 

linked to any identified downwind nonattainment or maintenance receptors with 

respect to the 2008 ozone standard. However, when EPA promulgated the 

original CSAPR rulemaking, Georgia remained linked to an ongoing air quality 

problem with respect to the 1997 standard even after implementation of the 

emissions budget quantified in that rulemaking. Therefore, unlike Florida, 

North Carolina, and South Carolina, Georgia’s budget was not subject to the 

same record issues identified by the D.C. Circuit related to the EPA’s 2014 

modeling and was not subject to remand for reconsideration. As Georgia 

remained linked to a continued air quality problem with respect to the 1997 

ozone NAAQS in the original CSAPR analysis, the EPA retained this budget as a 

constraint in its analysis for this rule. Assuming compliance with that 

budget, the EPA determined that Georgia does not significantly contribute to 

nonattainment or interfere with maintenance of the 2008 ozone NAAQS downwind. 

The EPA has also concluded, as discussed in section IV.D, that compliance 

with that budget is sufficient to fully address Georgia’s interstate 

transport obligation with respect to the 1997 NAAQS.
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program without further transport regulation. The court 

essentially found that, by phase 2 of the CSAPR program, the 

CSAPR record did not support the EPA’s authority to require 

emission reductions from these 10 states in order to address the 

1997 ozone NAAQS. Thus, absent any new analysis demonstrating

that these states are linked to downwind air quality problems 

with respect to the 1997 ozone NAAQS, the EPA does not have the 

authority to subject these states to the CSAPR NOX ozone season 

emissions program beginning in 2017 and therefore does not have 

the authority to calculate new emission budgets for these states 

to address that standard. For Florida, North Carolina, and South 

Carolina, the EPA is therefore relieving sources in the states 

from the obligation to comply with the NOX ozone season trading 

program in response to the remand. For the remaining seven 

states, sources located in these states will no longer be 

subject to the phase 2 NOX ozone season budgets calculated to 

address the 1997 standard; however, because these states are 

linked to downwind air quality problems with respect to the 2008 

ozone NAAQS, the EPA is promulgating new ozone season NOX

emission budgets at 40 CFR 97.810(a). See also 40 CFR 

52.38(b)(2)(ii) (relieving sources in all ten of these states of 

the obligation to comply with the remanded phase 2 NOX ozone 

season emission budgets after 2016).
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With respect to Texas, because the court determined that 

the phase 2 ozone season budget was more stringent than 

necessary to address Texas’ interstate transport obligation with 

respect to the 1997 ozone NAAQS, the EPA removed Texas’s budget 

as a constraint in the 2017 air quality modeling. Even in the 

absence of this constraint, the updated 2017 air quality 

modeling shows that the predicted average DVs and maximum DVs 

are below the level of the 1997 ozone NAAQS for the downwind 

receptors of concern to which Texas was linked in the original 

CSAPR rulemaking with respect the 1997 ozone NAAQS. Accordingly, 

the EPA has concluded that it need not require additional 

emission reductions from sources in Texas in order to address 

the state’s interstate transport obligation. Thus, sources in 

Texas will no longer be subject to the phase 2 NOX ozone season 

budget calculated to address the 1997 standard; however, because 

Texas is linked to downwind air quality problems with respect to 

the 2008 ozone NAAQS, the EPA is promulgating a new ozone season 

NOX emission budget to address that standard at 40 CFR 97.810(a). 

See also 40 CFR 52.38(b)(2)(ii) (relieving sources in Texas of 

the obligation to comply with the remanded phase 2 NOx ozone 

season emission budgets after 2016).

Separately, various petitioners filed legal challenges in 

the D.C. Circuit to an EPA supplemental rule that added five 
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states to the CSAPR ozone season trading program, 76 FR 80760 

(Dec. 27, 2011). See Public Service Company of Oklahoma v. EPA, 

No. 12-1023 (D.C. Cir., filed Jan. 13, 2012). The case was held 

in abeyance during the pendency of the litigation in EME Homer 

City. The case remains pending in the D.C. Circuit as of the 

date of signature of this rule.93 The EPA notes that this 

rulemaking also promulgates FIPs for all five states added to 

CSAPR in the supplemental rule: Iowa, Michigan, Missouri, 

Oklahoma, and Wisconsin. These FIPs incorporate revised emission 

budgets that replace the budgets promulgated in the supplemental 

CSAPR rule to address the 1997 ozone NAAQS for these five states 

and will be effective for the 2017 ozone season. In light of the 

court’s decision in EME Homer City II, the EPA examined the 

record supporting the CSAPR rulemaking and determined that, like 

the 10 states discussed earlier, the EPA’s 2014 modeling 

conducted to support the RIA for CSAPR demonstrated that air 

quality problems at the downwind locations to which four of the 

states added to CSAPR in the supplemental rule, Iowa, Michigan, 

Oklahoma, and Wisconsin, were linked would resolve by phase 2 of 

 

93 In 2012, the EPA also finalized two rules making certain revisions to 

CSAPR. 77 FR 10324 (Feb. 21, 2012); 77 FR 34830 (June 12, 2012). Various 

petitioners filed legal challenges to these rules in the D.C. Circuit, and 

the cases were also held in abeyance pending the litigation in EME Homer 

City. See Wisconsin Public Service Corp. v. EPA, No. 12-1163 (D.C. Cir., 

filed Apr. 6, 2012); Utility Air Regulatory Group v. EPA, No. 12-1346 (D.C. 

Cir., filed Aug. 9, 2012). The cases currently remain pending in the D.C. 

Circuit.
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the CSAPR program without further transport regulation (either 

CAIR or CSAPR). Accordingly, sources in these states will no 

longer be subject to the phase 2 NOX ozone season budgets 

calculated to address the 1997 standard; however, because these 

states are linked to downwind air quality problems with respect 

to the 2008 ozone NAAQS, the EPA is promulgating new ozone 

season NOX emission budgets at 40 CFR 97.810(a). See also 40 CFR 

52.38(b)(2)(ii) (relieving sources in these four states of the 

obligation to comply with the original phase 2 NOX ozone season 

emission budgets after 2016).

The D.C. Circuit also remanded without vacatur the CSAPR 

phase 2 SO2 annual emission budgets for four states (Alabama, 

Georgia, South Carolina, and Texas) for reconsideration. 795 

F.3d at 129, 138. This final rule does not address the remand of 

these CSAPR phase 2 SO2 annual emission budgets. On June 27, 

2016, the EPA released a memorandum outlining the agency's 

approach for responding to the D.C. Circuit's July 2015 remand 

of the CSAPR phase 2 SO2 annual emission budgets for Alabama, 

Georgia, South Carolina, and Texas. The memorandum can be found 

at 

https://www3.epa.gov/airtransport/CSAPR/pdfs/CSAPR_SO2_Remand_Me

mo.pdf.
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D. Addressing Outstanding Transport Obligations for the 1997 

Ozone NAAQS

In the original CSAPR, the EPA noted that the reductions 

for 11 states may not be sufficient to fully eliminate all 

significant contribution to nonattainment or interference with 

maintenance for certain downwind areas with respect to the 1997 

ozone NAAQS.94 The 11 states are: Alabama, Arkansas, Georgia, 

Illinois, Indiana, Kentucky, Louisiana, Mississippi, Missouri, 

Tennessee, and Texas. In the original CSAPR, the EPA did not 

require EGU NOX reductions represented by costs that exceeded 

$500 per ton because it noted that, at cost thresholds higher 

than $500 per ton, non-EGU reductions should also be considered. 

Additionally, the EPA’s analysis projected continued 

nonattainment and maintenance problems at downwind receptors to 

which these upwind states were linked after implementation of 

the CSAPR trading programs. Specifically, persistent ozone 

problems were expected in Baton Rouge, Louisiana; Houston, 

Texas; and Allegan, Michigan according to the remedy case 

modeling conducted for the final rule. At that time the EPA did 

not quantify further ozone season EGU or non-EGU NOX reductions 

that would be needed in these states to fully resolve the good 

 

94 See CSAPR Final Rule, 76 FR at 48220, and the CSAPR Supplemental Rule, 76 

FR at 80760, December 27, 2011.
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neighbor obligation under the CAA with respect to the 1997 ozone 

NAAQS.

To evaluate whether additional emission reductions would be 

needed in these 11 states to address the states’ full good 

neighbor obligation for the 1997 ozone NAAQS, the EPA reviewed 

the 2017 air quality modeling conducted for this rule, which 

includes emission reductions associated with the CSAPR phase 2 

ozone season budgets that were not remanded. The modeling

included the phase 2 ozone season budgets for 10 of the states 

listed above -– all but Texas. For each of these states, the 

updated 2017 air quality modeling shows that the predicted 

average DVs and maximum DVs for 2017 are below the level of the 

1997 ozone NAAQS for the downwind receptors of concern to which 

the 11 states were linked in the original CSAPR rulemaking with 

respect the 1997 ozone NAAQS, meaning that these receptors no 

longer qualify as either nonattainment or maintenance receptors 

for that NAAQS. The 2017 air quality modeling also shows that 

there are no other nonattainment or maintenance receptors to 

which these states would be linked with respect to the 1997 

ozone NAAQS. Thus, the EPA finds that, with implementation of 

the original CSAPR NOX ozone season emission budgets in the 

states not subject to the remand, emissions within these ten

states no longer significantly contribute to downwind 
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nonattainment or interference with maintenance for the 1997 

ozone NAAQS. Thus, the promulgation of the CSAPR NOX ozone season 

budgets in those states satisfied the EPA’s FIP obligation 

pertaining to the good neighbor provision for the 1997 ozone 

NAAQS. The EPA further finds that, with implementation of the 

CSAPR Update NOX ozone season emission budgets, emissions from 

these ten states also no longer significantly contribute to 

downwind nonattainment or interference with maintenance for the 

1997 ozone NAAQS.

Despite the EPA’s conclusion in CSAPR that the 1997 ozone 

transport problems to which Texas was linked were not fully 

resolved, the court concluded in EME Homer City II that the 

ozone season emission budget finalized for Texas resulted in 

over-control as to the ozone air quality problems to which the 

state was linked. 795 F.3d at 129-30. As described earlier, in 

response to this determination, the EPA removed Texas’s phase 2 

ozone season budget as a constraint in the 2017 air quality 

modeling. Even in the absence of this constraint, the updated 

2017 air quality modeling shows that the predicted average DVs 

and maximum DVs are below the level of the 1997 ozone NAAQS for 

the downwind receptors of concern to which Texas was linked in 

the original CSAPR rulemaking with respect the 1997 ozone NAAQS. 

Accordingly, the EPA has concluded that it need not require 
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additional emission reductions from sources in Texas in order to 

address the states’ interstate transport obligation with respect 

to the 1997 standard, and that the EPA has therefore fully 

addressed its FIP obligation with respect to Texas. Texas 

remains subject to the CSAPR Update in this final rulemaking 

with respect to the 2008 ozone NAAQS. 

No Texas emissions were linked to expected ozone problems 

in Baton Rouge, Louisiana, and Allegan, Michigan. As noted 

previously receptors for these areas are no longer a concern for 

the 1997 ozone NAAQS. The EPA finds that Texas emissions no 

longer contribute significantly to nonattainment in, or 

interfere with maintenance by, any other state with respect to 

the 1997 ozone NAAQS. Thus, the EPA no longer has a FIP 

obligation pertaining to Texas emissions and the good neighbor 

provision for the 1997 ozone NAAQS.

V. Analyzing Downwind Air Quality and Upwind State 

Contributions

In this section, the agency describes the air quality 

modeling performed consistent with steps 1 and 2 of the CSAPR 

framework described earlier in order to (1) identify locations 

where it expects nonattainment or maintenance problems with 

respect to the 2008 ozone NAAQS for the 2017 analytic year 

chosen for this final rule, and (2) quantify the contributions 
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from anthropogenic emissions from upwind states to downwind 

ozone concentrations at monitoring sites projected to be in

nonattainment or have maintenance problems for the 2008 ozone 

NAAQS in 2017. 

This section includes information on the air quality 

modeling platform used in support of the final rule with a focus 

on the base year and future base case emission inventories. The 

EPA also provides the projection of 2017 ozone concentrations 

and the interstate contributions for 8-hour ozone. The Final 

Rule AQM TSD in the docket for this rule contains more detailed 

information on the air quality modeling aspects of this 

rulemaking. 

The EPA provided two separate opportunities to comment on 

the air quality modeling platform and air quality modeling 

results that were used for the proposed CSAPR Update. On August 

4, 2015, the EPA published a Notice of Data Availability (80 FR 

46271) requesting comment on these data. Specifically, in the 

NODA, the EPA requested comment on the data and methodologies 

related to the 2011 and 2017 emissions and the air quality 

modeling to project 2017 concentrations and contributions. In 

addition to the comments received via the NODA, the EPA also 

received comments on emissions inventories and air quality 

modeling in response to the proposed CSAPR Update. Comments on 
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both the NODA and proposed rule were considered for this final 

rule.

A. Overview of Air Quality Modeling Platform

For the proposed rule, the EPA performed air quality 

modeling for three emissions scenarios: a 2011 base year, a 2017 

baseline, and a 2017 control case that reflects the emission 

reductions expected from the rule.95

The EPA selected 2011 as the base year to reflect the most 

recent National Emissions Inventory (NEI). In addition, the 

meteorological conditions during the summer of 2011 were 

generally conducive for ozone formation across much of the U.S., 

particularly the eastern U.S. As described in the AQM TSD, the 

EPA’s guidance for ozone attainment demonstration modeling, 

hereafter referred to as the modeling guidance, recommends

modeling a time period with meteorology conducive to ozone 

formation for purposes of projecting future year design values96. 

 

95 The 2017 control case is relevant to the EPA’s policy analysis 

discussed in section VI and to the benefits and costs assessment 

discussed in section VIII of this preamble. It is not used to identify 

nonattainment or maintenance receptors or quantify the contributions 

from upwind states to these receptors.

96 U.S. Environmental Protection Agency, 2014. Modeling Guidance for 

Demonstrating Attainment of Air Quality Goals for Ozone, PM2.5, and 

Regional Haze, Research Triangle Park, NC. 

(http://www.epa.gov/ttn/scram/guidance/guide/Draft_O3-PMRH_Modeling_Guidance-2014.pdf)
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The EPA therefore believes that meteorological conditions and 

emissions during the summer of 2011 provide an appropriate basis 

for projecting 2017 ozone concentrations in contributions. 

As noted in section IV, the EPA selected 2017 as the 

projected analysis year to coincide with the attainment deadline 

for Moderate areas under the 2008 ozone NAAQS. The agency used 

the 2017 baseline emissions in its air quality modeling to 

identify future nonattainment and maintenance locations and to 

quantify the contributions of emissions from upwind states to 8-

hour ozone concentrations at downwind locations. The air quality

modeling of the 2017 baseline and 2017 illustrative control case 

emissions are used to inform the agency’s assessment of the air 

quality impacts resulting from this rule.

For the final rule modeling, the EPA used the Comprehensive 

Air Quality Model with Extensions (CAMx) version 6.2097 to 

simulate pollutant concentrations for the 2011 base year and the 

2017 future year scenarios. This version of CAMx was the most 

recent, publicly available version of this model at the time 

that the EPA performed air quality modeling for this rule. CAMx 

is a grid cell-based, multi-pollutant photochemical model that 

simulates the formation and fate of ozone and fine particles in 

 

97 Comprehensive Air Quality Model with Extensions Version 6.20 User’s 

Guide. ENVIRON International Corporation, Novato, CA, March 2015.
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the atmosphere. The CAMx model applications were performed for a 

modeling region (i.e., modeling domain) that covers the 

contiguous 48 United States, the District of Columbia, and 

adjacent portions of Canada and Mexico using a horizontal 

resolution of 12 x 12 km. A map of the air quality modeling 

domain is provided in the AQM TSD.

The 2011-based air quality modeling platform includes 2011 

base year emissions, 2017 future year projections of these 

emissions, and 2011 meteorology for air quality modeling with 

CAMx. In the remainder of this section, the EPA provides an 

overview of (1) the 2011 and 2017 emissions inventories, (2) the 

methods for identifying nonattainment and maintenance receptors 

along with a list of 2017 baseline nonattainment and maintenance 

receptors in the eastern U.S., (3) the approach to developing 

metrics to measure interstate contributions to 8-hour ozone, and 

(4) the predicted interstate contributions of upwind states to 

downwind nonattainment and maintenance in the eastern U.S. The 

EPA also identifies which predicted interstate contributions are 

at or above the screening threshold described in section IV, 

which the agency applies in step 2 of the CSAPR framework for 

purposes of identifying those upwind states that are linked to 

downwind air quality problems and which merit further analysis 
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with respect to regulation of interstate transport of ozone for 

purposes of the 2008 ozone standard.

The EPA conducted an operational model performance 

evaluation of the 2011 modeling platform by comparing the 8-hour 

daily maximum ozone concentrations predicted during the May 

through September “ozone season” to the corresponding measured 

concentrations. This evaluation generally followed the approach 

described in the modeling guidance. Details of the model 

performance evaluation are described in the AQM TSD. The model 

performance results indicate that the 8-hour daily maximum ozone 

concentrations predicted by the 2011 CAMx modeling platform 

reflect the corresponding 8-hour observed ozone concentrations 

in the 12-km U.S. modeling domain. As recommended in the 

modeling guidance, the acceptability of model performance was 

judged by considering the 2011 CAMx performance results in light 

of the range of performance found in recent regional ozone model 

applications. These other modeling studies represent a wide 

range of modeling analyses that cover various models, model 

configurations, domains, years and/or episodes, and chemical 

mechanisms. Overall, the ozone model performance results for the 

2011 CAMx simulations are within the range found in other recent 

peer-reviewed and regulatory applications. The model performance 

results, as described in the AQM TSD, demonstrate that the 
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predictions from the 2011 modeling platform correspond to 

measured data in terms of the magnitude, temporal fluctuations, 

and spatial differences for 8-hour daily maximum ozone. These 

results provide confidence in the ability of the modeling 

platform to provide a reasonable projection of expected future 

year ozone concentrations and contributions.

Comment: The EPA received comments that model performance 

should be evaluated for the individual days that were used in 

calculating projected 2017 ozone design values and projected 

2017 ozone contributions. Commenters said that, in cases where 

model performance on these individual days is poor, the impact 

of the poor performance on projected concentrations and 

contributions must be investigated and considered in the final 

results by removing or adjusting these days to account for model 

bias. 

Response: The EPA is using air quality modeling to provide 

data for a set of representative days with meteorological 

conditions conducive for ozone formation and transport for use 

in projecting ozone design values and for calculating the 

average contribution metric. As described in sections V.D and 

V.E of this preamble, EPA is using air quality model predictions 

in a relative sense for estimating 2017 ozone design values and 
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contributions. In this regard, the approach for projecting 

future design values is “anchored” by measured concentrations. 

As stated in the modeling guidance, it is reasoned that factors 

causing bias (either under or over-predictions) in the base year

will also affect the future case. While good model performance 

remains a prerequisite for use of a model, problems posed by 

imperfect model performance on individual days are expected to 

be reduced when using the relative approach. Moreover, there are 

no universally accepted, generally applicable numerical brightline criteria for determining which days might be candidates to 

exclude or adjust based on model performance for specific days 

at individual sites, as in the approach suggested by the 

commenter. Thus, the EPA disagrees that such an approach is 

necessary or appropriate for determining the sets of days used 

to provide data for projecting 2017 design values and for 

calculating the average contribution metric.

The results of the model performance evaluation, as 

described previously and in the AQM TSD, indicate that ozone 

predictions from the modeling platform correspond to measured 

data in terms of the magnitude, temporal fluctuations, and 

spatial differences for 8-hour daily maximum ozone. Prior court 

rulings are deferential to modeling choices in this regard. The 

D.C. Circuit has declined to “invalidate EPA’s predictions 
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solely because there might be discrepancies between those 

predictions and the real world.”98 The fact that a “model does 

not fit every application perfectly is not criticism; a model is 

meant to simplify reality in order to make it tractable.”99 The 

court has held that “it is only when the model bears no rational 

relationship to the characteristics of the data to which it is 

applied that we will hold that the use of the model was 

arbitrary and capricious.”100 As demonstrated by the EPA’s model 

performance evaluation, the modeling platform used in this 

rulemaking provides reasonable projections of expected future 

year ozone concentrations and contributions, and is thus an 

appropriate basis on which to base the findings made in this 

action.

B. Emission Inventories

The EPA developed emission inventories for this rule 

including emission estimates for EGUs, non-EGU point sources, 

stationary nonpoint sources, onroad mobile sources, nonroad 

mobile sources, wild fires, prescribed fires, and for biogenic 

emissions that are not the result of human activities. The EPA’s 

air quality modeling relies on this comprehensive set of 

 

98 EME Homer City II, 795 F.3d at 135-36.

99 Chemical Manufacturers Association v EPA, 28 F.3d 1259, 1264, 307 U.S. App. 

D.C. 392 (D.C. Cir. 1994).

100 Appalachian Power Co. v. EPA, 135 F.3d 791, 802 (D.C. Cir. 1998).
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emission inventories because emissions from multiple source 

categories are needed to model ambient air quality and to 

facilitate comparison of model outputs with ambient 

measurements. 

To prepare the emission inventories for air quality 

modeling, the EPA processed the emission inventories using the 

Sparse Matrix Operator Kernel Emissions (SMOKE) Modeling System 

version 3.7 to produce the gridded, hourly, speciated, modelready emissions for input to the CAMx air quality model. 

Additional information on the development of the emission 

inventories and on data sets used during the emissions modeling 

process for the final rule are provided in the TSD “Preparation 

of Emissions Inventories for the Version 6.3, 2011 Emissions 

Modeling Platform,” hereafter known as the “Final Rule Emissions 

Modeling TSD.” This TSD is available in the docket for this rule 

and at www.epa.gov/air-emissions-modeling/2011-version-6-airemissions-modeling-platforms.

The emission inventories, methodologies, and data used for 

the proposal air quality modeling were provided for public 

comment in the August 4, 2015 NODA. Comments received on this 

NODA and on the proposal were considered for the final rule and 

the resulting data and procedures are documented in the Final 

Rule Emissions Modeling TSD.
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1. Foundation Emission Inventory Data Sets

The EPA developed emission data representing the year 2011 

to support air quality modeling of a base year from which future 

air quality could be forecasted. The primary basis for the 2011 

inventories used in air quality modeling was the 2011 National 

Emission Inventory (NEI) version 2 (2011NEIv2), released in 

March 2015. Documentation on the 2011NEIv2 is available in the 

2011 National Emissions Inventory, version 2 TSD available in 

the docket for this rule and at www.epa.gov/air-emissionsinventories/2011-national-emissions-inventory-nei-documentation. 

Updates to the 2011NEIv2 were incorporated between the proposed 

and the final rule in response to comments received on the NODA 

and on the proposal. The future base case scenario modeled for 

2017 includes a representation of changes in activity data and 

of predicted emission reductions from on-the-books actions, 

including planned emission control installations and promulgated 

federal measures that affect anthropogenic emissions.101 The 

emission inventories for air quality modeling include sources 

that are held constant between the base and future years, such 

as biogenic emissions and emissions from agricultural, wild and 

 

101 Biogenic emissions and emissions from wild fires and prescribed fires were 

held constant between 2011 and 2017 since (1) these emissions are tied to the 

2011 meteorological conditions and (2) the focus of this rule is on the 

contribution from anthropogenic emissions to projected ozone nonattainment 

and maintenance. 
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prescribed fires. The land use data used for the computation of 

the biogenic emissions were updated from those used in the 

proposal modeling to use the 2011 National Land Cover Database 

(NLCD) along with other updated data sets related to forest

species, elevation, and cropland data in response to comments 

received on the NODA. The base and future year emissions for 

Canada used for the proposed rule were held constant at 2010 

levels. For the final rule, the 2010 inventories were updated to 

reflect closures of EGUs and reductions to onroad and nonroad 

mobile source emissions in 2017. Emissions for Mexico represent 

the year 2018 and were unchanged from the proposed rule 

inventories.

2. Development of Emission Inventories for EGUs

Annual NOX and SO2 emissions for EGUs in the 2011NEIv2 are 

based primarily on data from continuous emission monitoring 

systems (CEMS), with other EGU pollutants estimated using 

emission factors and annual heat input data reported to the EPA. 

For EGUs without CEMS, the EPA used data submitted to the NEI by 

the states. The final rule inventories include some updates to 

2011 EGU stack parameters and emissions made in response to 

comments on the NODA and proposal. Between proposal and final, 

additional point sources in the inventory were identified as 

small EGUs. This resulted in increases to EGU NOx emissions that 
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were offset by equivalent reductions in non-EGU point source NOx

emissions in Arkansas, California, Florida, Idaho, Louisiana, 

Mississippi, New Hampshire, Oregon, and Texas. For more 

information on the details of how the 2011 EGU emissions were 

developed and prepared for air quality modeling, see the Final 

Rule Emissions Modeling TSD.

The EPA projected future 2017 baseline EGU emissions using 

version 5.15 of the Integrated Planning Model (IPM) 

(www.epa.gov/airmarkets/power-sector-modeling). IPM, developed 

by ICF Consulting, is a state-of-the-art, peer-reviewed, multiregional, dynamic, deterministic linear programming model of the 

contiguous U.S. electric power sector. It provides forecasts of 

least cost capacity expansion, electricity dispatch, and 

emission control strategies while meeting energy demand and 

environmental, transmission, dispatch, and reliability 

constraints. The EPA has used IPM for over two decades to better 

understand power sector behavior under future business-as-usual 

conditions and to evaluate the economic and emission impacts of 

prospective environmental policies. The model is designed to 

reflect electricity markets as accurately as possible. The EPA 

uses the best available information from utilities, industry 

experts, gas and coal market experts, financial institutions, 

and government statistics as the basis for the detailed power 
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sector modeling in IPM. The model documentation provides 

additional information on the assumptions discussed here as well 

as all other model assumptions and inputs.102

To project future 2017 baseline EGU emissions for the CSAPR 

Update, the EPA adjusted the 2018 IPM version 5.15 base case 

results to account for three categories of differences between 

2017 and 2018.103 The categories are: 1) adjusting NOX emissions 

for units with SCRs in 2018 but that are assumed not to operate 

or be installed in 2017; 2) adding NOX emissions for units that 

are retiring in 2018 but are projected to operate in 2017; and 

3) adjusting NOX emissions for coal-fired units that are 

projected to convert to natural gas (i.e., “coal-to-gas”) in 

2018, but are still projected to burn coal in 2017. These 

adjustments are discussed in greater detail in the IPM 

documentation found in the docket for this final rule.

The IPM version 5.15 base case accounts for comments 

received as a result of the NODAs released in 2013, 2014, and 

2015. This base case also accounts for comments received on the 

proposed CSAPR Update as well as updated environmental 

 

102 Detailed information and documentation of the EPA’s Base Case, 

including all the underlying assumptions, data sources, and 

architecture parameters can be found on the EPA’s website at: 

www.epa.gov/airmarkets/power-sector-modeling.

103 The EPA uses this approach to project 2017 data because 2017 is not a 

direct IPM run year.
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regulations. Unlike the modeling for the proposed rule, which 

was conducted prior to the D.C. Circuit’s issuance of EME Homer 

City II,104 this projected base case accounts for compliance with 

the original CSAPR by including as constraints all original 

CSAPR emission budgets with the exception of remanded phase 2 NOX

ozone season emission budgets for 11 states and phase 2 NOX ozone 

season emission budgets for four additional states that were 

finalized in the original CSAPR supplemental rule.105,106

Specifically, to reflect original CSAPR ozone season NOX

requirements, the modeling includes as constraints the original 

CSAPR NOX ozone season emission budgets for 10 states -- Alabama, 

Arkansas, Georgia, Illinois, Indiana, Kentucky, Louisiana, 

Mississippi, Missouri, and Tennessee. 

The IPM projected base case also accounts for the effects 

of the finalized and effective MATS107, New Source Review 

 

104 EME Homer City Generation, L.P., v. EPA, No. 795 F.3d 118

105 In EME Homer City II, the D.C. Circuit declared invalid the CSAPR phase 2 

NOX ozone season emission budgets of 11 states: Florida, Maryland, New Jersey, 

New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, 

Virginia, and West Virginia. Id. 795 F.3d at 129-30, 138. The court remanded 

those budgets to the EPA for reconsideration. Id. at 138. As a result, the 

EPA removed the original CSAPR phase 2 NOX ozone season emission budgets as 

constraints for these 11 states in the 2017 IPM modeling.

106 The EPA acknowledges that the CSAPR NOX ozone season emission budgets for 

Iowa, Michigan, Oklahoma, and Wisconsin -- which were finalized in the 

original CSAPR Supplemental Rule (76 FR 80760, December 27, 2011) -- were 

linked to the same receptors that lead to the remand of other states’ NOX

ozone season emission budgets in EME Homer City II.

107 In Michigan v. EPA, the Supreme Court reversed on narrow grounds a portion 

of the D.C. Circuit decision upholding the MATS rule, finding that the EPA 

erred by not considering cost when determining that regulation of EGUs was 
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settlements, and on-the-books state rules through February 1, 

2016108 impacting SO2, NOX, directly emitted particulate matter,

and CO2, and final actions the EPA has taken to implement the 

Regional Haze Rule.109 The EPA’s IPM base case also includes two 

federal non-air rules affecting EGUs: the Cooling Water Intake

Structure (Clean Water Act section 316(b)) rule and the Coal 

Combustion Residuals (CCR) rule. The IPM modeling performed for 

the final CSAPR Update does not include the final Clean Power 

Plan (CPP). Documentation of IPM version 5.15 is in the docket

and available online at www.epa.gov/airmarkets/power-sectormodeling.

Comment: Many comments requested that the agency not 

include the CPP in the 2017 projections informing policy 

 

"appropriate" pursuant to CAA section 112(n)(1). 135 S.Ct. 192 (2015). On 

remand, the D.C. Circuit left the MATS rule in place pending the EPA’s 

completion of its cost consideration in accordance with the Supreme Court’s 

decision. White Stallion Energy Ctr. v. EPA, No. 12-1100 (Dec. 15, 2015) 

(order remanding MATS rule without vacatur). The EPA finalized its 

supplemental action responding to the Supreme Court’s Michigan decision on 

April 14, 2016. 81 FR 24420 (April 25, 2016). The MATS rule is currently in 

place.

108 For any specific version of IPM there is a cutoff date after which 

it is no longer possible to incorporate updates into the input 

databases. 

109 The EPA did not include the federal Regional Haze Plans for Texas and 

Oklahoma, published January 5, 2016, in IPM for this rule. These Regional 

Haze Plans do not require significant emission reductions for three to five 

years from the effective date of the rule, see 81 FR 296, 305. Also, the 

Fifth Circuit has since stayed those requirements pending judicial review, 

Texas v. EPA, 2016 U.S. App. LEXIS 13058 (5th Cir. July 15, 2016).
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decisions in this rule. This was in response to our discussion 

of this topic and request for comment in the proposal preamble 

and a memorandum to the docket (hereinafter referred to as the 

“Harvey Memo”).110 Commenters cited discrete CPP-related outputs 

in the 2017 modeling results, such as the retirement of model 

plants, for the proposed CSAPR Update and provided information 

indicating that retirements of the actual plants represented in 

the model were not expected to occur by 2017. Commenters 

specifically requested that EPA should not include the CPP in 

the base case modeling.

Response: We agree that the CPP should not be included in 

the base case modeling for this rule. 

The EPA recognizes that, in general, including the 

illustrative modeling of the CPP, as a promulgated rule, in the 

baseline of the CSAPR Update would accord with typical practice.

This typical practice is one common approach for ensuring that 

all power sector and air quality impacts evaluated in the CSAPR 

Update analysis are fully incremental to and independent of the 

impacts of preceding rules. However, the CSAPR requirements will 

be implemented at least five years before any requirements are 

 

110 Reid Harvey, Dir., Clean Air Markets Div., Memorandum to the Docket, 

Inclusion of the Clean Power Plan in the baseline for the proposed CrossState Air Pollution Rule Update for the 2008 Ozone NAAQS (Dec. 2, 2015) 

(hereinafter “Harvey Memo”).
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applied to sources under the CPP, and there should be no 

meaningful impact of the CPP on power sector dispatch decisions 

in the timeframe of the CSAPR requirements, as analyzed here.111

In the Harvey Memo prepared for the CSAPR Update proposal, 

we identified several key factors and uncertainties associated 

with measuring the effects of the CPP in 2017. We identified 

simplifying assumptions in the CPP modeling regarding the types 

of plans states may develop, and noted that the CPP does not 

have any pre-2022 requirements for sources and provides states 

and utilities with ample options to minimize near-term impacts. 

Harvey Memo, at 11-13. Therefore, we observed that in the 

context of the CPP, the model projected impacts in 2016-2018 are 

likely overstated due to the modeling structure’s perfect 

foresight of future prices and market conditions that don’t 

reflect real-world uncertainty. Id. at 6. We also noted the 

likelihood that states would choose implementation pathways that 

 

111 On February 9, 2016, after the close of the public comment period for the 

CSAPR Update rule, the Supreme Court granted applications to stay the Clean 

Power Plan, pending judicial review of the rule in the D.C. Circuit, 

including any subsequent review by the Supreme Court. West Virginia et al. v. 

EPA, No. 15A773 (U.S. Feb. 9, 2016). The concerns discussed here predated and 

are unrelated to the stay. It is currently unclear what adjustments, if any, 

will need to be made to implementation timing in light of the stay. The 

Supreme Court’s orders granting the stay did not discuss the parties’ 

differing views of whether and how the stay would affect the CPP’s compliance 

deadlines, and they did not expressly resolve that issue. In this context, 

the question of whether and to what extent tolling is appropriate will need 

to be resolved once the validity of the CPP is finally adjudicated.
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would completely avoid the actions that were forecast in the 

model to occur by 2018. For these reasons, the modeling results 

prior to 2020 were not relied upon for the CPP RIA. Id. at 13.

Commenters, particularly the regulated utilities, by and 

large agreed that these considerations were significant and 

atypical and urged the agency to exclude the CPP from the CSAPR 

Update modeling. Thus, while the EPA continues to believe that 

the modeling analysis for the CPP in the final CPP RIA was 

useful and reliable with respect to the model years analyzed for 

that rule (i.e., 2020, 2025, and 2030), we are excluding the CPP 

from the base case in this action.

For further discussion of the CPP, see discussion below at 

Section VII.H.2; see also Harvey Memo, at 5-11.

3. Development of Emission Inventories for Non-EGU Point Sources

The 2011 non-EGU point sources in the 2011 base case 

inventory match those in the proposal modeling, except for those 

sources that were updated as a result of comments including 

sources in Georgia, Illinois, North Carolina, and Oklahoma. Most 

changes were a result of the reclassification of sources as EGUs 

and amount to less than 2 percent of the non-EGU point NOX

emissions in each state. The largest change in terms of overall 

tonnage was 2,800 tons of reduction in Texas, 1,300 of which 

were offset by increases to the EGU sector and 1,500 tons of 
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which were reductions of railroad equipment emissions based on a 

comment from the Texas Commission on Environmental Quality. In 

addition to comments related to emissions, some comments on 

stack parameters were received and incorporated. Details on the 

development of the 2011 emission inventories can be found in the 

Final Rule Emissions Modeling TSD and the 2011NEIv2 TSD. 

Prior to air quality modeling, the emission inventories 

must be processed into a format that is appropriate for the air 

quality model to use. Details on the processing of the emissions

for 2011 and on the development of the 2017 non-EGU emission 

inventories are available in the Final Rule Emissions Modeling

TSD. 

Projection factors and percent reductions in this rule 

reflect comments received as a result of the August 4, 2015 NODA

and the proposed CSAPR Update. Non-EGU emissions for 2017 also 

changed from the proposal due to a correction to the order of 

precedence for the application of control programs. The largest 

tonnage change from the projected 2017 NOX emissions in the 

proposal was a 2,200 ton increase in Wisconsin, an 8 percent

increase. The largest percentage change to 2017 non-EGU point 

emissions was a 1,300 ton reduction in Oregon equivalent to 9

percent of non-EGU point emissions in the state and offset by an 

increase in EGU emissions. The 2017 non-EGU point emissions
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reflect emission reductions due to national and local rules, 

control programs, plant closures, consent decrees and 

settlements. Reductions from several Maximum Achievable Control 

Technology (MACT) and National Emission Standards for Hazardous 

Air Pollutants (NESHAP) standards are included. Projection 

approaches for corn ethanol and biodiesel plants, refineries and 

upstream impacts represent requirements pursuant to the Energy 

Independence and Security Act of 2007 (EISA). 

For aircraft emissions at airports, the EPA developed 

projection factors based on activity growth projected by the 

Federal Aviation Administration Terminal Area Forecast (TAF) 

system, published in March 2013. 

Point source and nonpoint oil and gas emissions are 

projected to 2018112 using regional projection factors by product 

type using Annual Energy Outlook (AEO) 2014 projections to year 

2018, the year for which all data sources needed to develop the 

projections were available. NOX and VOC reductions that are cobenefits to the NESHAP and New Source Performance Standards 

(NSPS) for Stationary Reciprocating Internal Combustion Engines 

(RICE) are reflected for select source categories. In addition, 

 

112 Developing oil and gas sector projections was a very complex process that 

combined data from many different sources. Not all of the same data was 

available for 2017, so the projected emissions were retained at 2018 levels 

as they had been prepared for proposal, but were adjusted based on comments.
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Natural Gas Turbines and Process Heaters NSPS NOX controls and 

NSPS Oil and Gas VOC controls are reflected for select source 

categories. The projection approach for oil and gas emissions 

was unchanged from that used for the proposal inventories, with 

the exception of changes incorporated in response to comments in

Colorado, Oklahoma, Texas and Utah and due the correction of an 

error in the projection factors that had been applied at 

proposal to oil and gas emissions in Kansas. There were modest 

changes to NOx emissions in New Mexico and North Dakota as a 

result of the correction to the order of precedence in the 

application of control programs. Details on the development of 

the projected point and nonpoint oil and gas emission 

inventories are available in the Final Rule Emissions Modeling 

TSD. 

4. Development of Emission Inventories for Onroad Mobile Sources

The EPA developed the onroad mobile source emissions for 

states other than California using the EPA’s Motor Vehicle 

Emissions Simulator, version 2014a (MOVES2014a), a newer version 

of MOVES than was used in the proposal modeling. The agency

computed the emissions within SMOKE by multiplying the MOVESbased emission factors with the appropriate activity data. The 

agency also used MOVES emission factors to estimate emissions 

from refueling. Both 2011 and 2017 onroad mobile source activity 
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data and model databases were updated for Ohio, New Jersey, 

North Carolina, and Texas in response to comments received on 

the NODA and on the proposed rule. Additional information on the 

approach for generating the onroad mobile source emissions is 

available in the Final Rule Emissions Modeling TSD. Onroad 

mobile source emissions for California were updated from the 

proposal using emissions submitted by the state in response to 

comments on the NODA.

In the future-year modeling for mobile sources, the EPA

included all national measures known at the time of modeling. 

The future scenarios for mobile sources reflect projected 

changes to fuel usage and onroad mobile control programs 

finalized as of the date of the model run. In response to 

comments on the NODA, the EPA developed future year onroad 

mobile source emission factors and activity data for the final 

rule modeling that directly represented the year 2017, whereas 

in the proposal modeling the 2017 emissions were based on 

adjustments to 2018 emissions. Finalized rules that are 

incorporated into the mobile source emissions include: Tier 3 

Standards (March 2014), the Light-Duty Greenhouse Gas Rule 

(March 2013), Heavy (and Medium)-Duty Greenhouse Gas Rule 

(August 2011), the Renewable Fuel Standard (February 2010), the 

Light Duty Greenhouse Gas Rule (April 2010), the Corporate-
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Average Fuel Economy standards for 2008-2011 (April 2010), the 

2007 Onroad Heavy-Duty Rule (February 2009), and the Final 

Mobile Source Air Toxics Rule (MSAT2) (February 2007). Impacts 

of rules that were in effect in 2011 are reflected in the 2011

base year emissions at a level that corresponds to the extent to 

which each rule had penetrated into the fleet and fuel supply by 

the year 2011. Local control programs such as the California LEV 

III program are included in the onroad mobile source emissions. 

Activity data for onroad mobile sources was projected using AEO 

2014. Updated onroad mobile source emissions in California for 

the final rule modeling of the year 2017 were provided by the 

California Air Resources Board.

5. Development of Emission Inventories for Commercial Marine 

Category 3 (Vessel)

The commercial marine category 3 vessel (“C3 marine”) 

emissions in the 2011 base case emission inventory for this rule

are consistent with those in the proposal modeling and are 

equivalent to those in the 2011NEIv2. These emissions reflect 

reductions associated with the Emissions Control Area proposal 

to the International Maritime Organization control strategy 

(EPA-420-F-10-041, August 2010); reductions of NOX, VOC, and CO 

emissions for new C3 engines that went into effect in 2011; and 

fuel sulfur limits that went into effect as early as 2010. The 
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cumulative impacts of these rules through 2017 are incorporated 

in the 2017 projected emissions for C3 marine sources.

6. Development of Emission Inventories for Other Nonroad Mobile 

Sources

To develop the nonroad mobile source emission inventories

other than C3 marine for the modeling platform, the EPA used

monthly, county, and process level emissions output from the 

National Mobile Inventory Model (NMIM) 

(http://www.epa.gov/otaq/nmim.htm). State-submitted emissions 

data for nonroad sources were used for Texas and California. For 

Texas, these emissions are consistent with those in the 

2011NEIv2, while the California emissions were consistent with 

those used in the proposal modeling. Locomotive emissions in 

Texas and North Carolina in the final rule modeling incorporated 

updates in response to comments received on the NODA.

In response to comments received on the NODA and the 

proposal, the EPA used NMIM to project nonroad mobile emissions

directly to 2017, as opposed to adjusting 2018 emissions back to 

2017 as was done for the proposal modeling. The nonroad mobile 

emission control programs include reductions to locomotives, 

diesel engines and marine engines, along with standards for fuel 

sulfur content and evaporative emissions. A comprehensive list 
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of control programs included for mobile sources is available in 

the Final Rule Emissions Modeling TSD.

7. Development of Emission Inventories for Nonpoint Sources

The emissions for stationary nonpoint sources in the 2011 

base case emission inventory are largely consistent with those 

in the proposal modeling and in the 2011NEIv2, although some 

updates to Connecticut, Massachusetts, North Carolina, Texas and

also to portable fuel container emissions were made in response 

to comments on the NODA and the proposal. For more information 

on the nonpoint sources in the 2011 base case inventory, see the 

Final Rule Emissions Modeling TSD and the 2011NEIv2 TSD.

Where states provided the EPA with information about 

projected control measures or changes in nonpoint source 

emissions, the EPA incorporated those inputs in its projections. 

Updates to nonpoint emissions in North Carolina, Connecticut,

Massachusetts, and Texas were incorporated in response to 

comments received on the NODA. The EPA included adjustments for 

state fuel sulfur content rules for fuel oil in the Northeast. 

Projected emissions for portable fuel containers reflect the 

impact of projection factors required by the final Mobile Source 

Air Toxics (MSAT2) rule and the EISA, including updates to 

cellulosic ethanol plants, ethanol transport working losses, and 

ethanol distribution vapor losses. 
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For the final rule, emissions for nonpoint oil and gas 

sources were updated in Colorado, Texas, and Oklahoma in 

response to comments received on the 2015 NODA, and an error was 

corrected in the projections for Kansas. The EPA developed 

regional projection factors for nonpoint oil and gas sources by 

product type based on Annual Energy Outlook (AEO) 2014

projections to year 2018. The agency reflected criteria air 

pollutant (CAP) co-benefit reductions resulting from the

National Emission Standards for Hazardous Air Pollutants 

(NESHAP) for Reciprocating Internal Combustion Engines (RICE)

and NSPS rules and Oil and Gas NSPS VOC controls for select 

source categories. Additional details on the projections are 

available in the Final Rule Emissions Modeling TSD.

C. Definition of Nonattainment and Maintenance Receptors

In this section, the EPA describes how it determines

locations where nonattainment or maintenance problems are 

expected for the 2008 8-hour ozone NAAQS in the 2017 analytic 

future year chosen for this rule. The EPA then describes how it 

factored current monitored data into the identification of sites 

as having either nonattainment or maintenance concerns for the 

purposes of this rulemaking. These sites are used as the 

“receptors” for quantifying the contributions of emissions in 
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upwind states to nonattainment and maintenance concerns in 

downwind locations. 

In this rule, the EPA is relying on the CSAPR approach (as 

described below) to identify separate nonattainment and 

maintenance receptors in order to give independent effect to 

both the “contribute significantly to nonattainment” and the 

"interfere with maintenance" prongs of section 

110(a)(2)(D)(i)(I), consistent with the D.C. Circuit’s direction 

in North Carolina.113 In its decision on remand from the Supreme 

Court, the D.C. Circuit confirmed that the EPA’s approach to 

identifying maintenance receptors in CSAPR comported with the 

court’s prior instruction to give independent meaning to the 

“interfere with maintenance” prong in the good neighbor 

provision. EME Homer City II, 795 F.3d at 136. 

In CSAPR, the EPA identified nonattainment receptors as 

those monitoring sites that are projected to have average design 

values that exceed the NAAQS. The EPA separately identified 

maintenance receptors as those receptors that would have 

difficulty maintaining the relevant NAAQS in a scenario that 

takes into account historical variability in air quality at that 

receptor. The original CSAPR approach for identifying 

 

113 531 F.3d at 910-911 (holding that the EPA must give “independent 

significance” to each prong of CAA section 110(a)(2)(D)(i)(I)).
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nonattainment and maintenance receptors relied only upon air 

quality model projections of measured design values. In the 

original CSAPR, if the average design value in the analysis year 

was projected to exceed the NAAQS, then the monitoring site was 

identified as a nonattainment receptor without consideration of 

whether the monitoring site is currently measuring “clean data” 

(i.e., design values below the NAAQS based on the most recent 

three years of measured data). In prior transport rulemakings,

such as the NOX SIP Call and CAIR, the EPA defined nonattainment 

receptors as those areas that both currently monitor 

nonattainment and that the EPA projects will be in nonattainment 

in the future compliance year.114 The EPA explained that it had 

the most confidence in its projections of nonattainment for 

those counties that also measure nonattainment for the most 

recent period of available ambient data. In the original CSAPR, 

the EPA was compelled to deviate from this practice of 

incorporating monitored data into its evaluation of projected 

nonattainment receptors because the most recent monitoring data 

then available reflected large emission reductions from CAIR, 

which the original CSAPR was designed to replace. As recently 

affirmed by the D.C. Circuit, it was therefore reasonable for 

 

114 63 FR at 57375, 57377 (Oct. 27, 1998); 70 FR at 25241 (May 12, 

2005). See also North Carolina, 531 F.3d at 913-914 (affirming as 

reasonable the EPA’s approach to defining nonattainment in CAIR).
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the EPA to decide not to compare monitored data reflecting CAIR 

emissions reductions to its modeling projections that instead 

excluded CAIR from its baseline.115

As the EPA is not replacing an existing transport program 

in this CSAPR Update, the agency proposed to once again consider 

current monitored data as part of the process for identifying 

projected nonattainment receptors for this rulemaking. The 

agency received comments supporting the consideration of current

monitored data for identifying projected nonattainment 

receptors. Thus, for the final CSAPR Update the EPA is 

identifying as nonattainment receptors those monitors that both 

currently measure nonattainment and that the EPA projects will 

be in nonattainment in 2017. 

As noted previously, in the original CSAPR, the EPA 

identified maintenance receptors as those receptors that would 

have difficulty maintaining the relevant NAAQS in a scenario 

that takes into account historical variability in air quality at 

that receptor. The variability in air quality was determined by 

evaluating the “maximum” future design value at each receptor 

based on a projection of the maximum measured design value over 

the relevant base year period. 

 

115 EME Homer City II, 795 F.3d at 135-36; see also 76 FR 48208 at 

48230-31 (August 8, 2011).
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The EPA interprets the projected maximum future design 

value to be a potential future air quality outcome consistent 

with the meteorology that yielded maximum measured 

concentrations in the ambient data set analyzed for that 

receptor. The EPA also recognizes that previously experienced 

meteorological conditions (e.g., dominant wind direction, 

temperatures, air mass patterns) promoting ozone formation that 

led to maximum concentrations in the measured data may reoccur 

in the future. Therefore, the maximum design value gives a 

reasonable projection of future air quality at the receptor 

under a scenario in which such conditions do, in fact, reoccur. 

The projected maximum design value is used to identify upwind 

states whose emissions, under those circumstances, could 

interfere with the downwind area's ability to maintain the 

NAAQS. 

For the final CSAPR Update, the EPA assesses the magnitude 

of the maximum projected design value for 2017 at each receptor 

in relation to the 2008 ozone NAAQS and, where such a value 

exceeds the NAAQS, the EPA determines that receptor to be a 

“maintenance” receptor for purposes of defining interference 

with maintenance, consistent with the method used in CSAPR and 
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upheld by the D.C. Circuit in EME Homer City II.116 That is, 

monitoring sites with a maximum projected design value that 

exceeds the NAAQS are projected to have a maintenance problem in 

2017.

In addition, those sites that are currently measuring clean 

data, but are projected to be nonattainment based on the average 

design value (and that, by definition, are projected to have a 

maximum design value above the standard) are also identified as 

maintenance-only receptors. Unlike nonattainment receptors, 

current clean monitored data does not disqualify a receptor from 

being identified as a maintenance receptor because the 

possibility of failing to maintain the NAAQS in the future, even 

in the face of current attainment of the NAAQS, is exactly what 

the maintenance prong of the good neighbor provision is designed 

to guard against.

Comment: The agency received comments that the EPA should 

not include as a downwind receptor any site that is currently 

measuring clean data. Commenters also raise concerns with the 

EPA’s reliance on the projected maximum design value to 

determine whether an area should be identified as a maintenance 

receptor, particularly where the projected average design value 

 

116 See 795 F.3d at 136.
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is below the NAAQS. The commenters contend that this approach 

does not take into account the nationwide trend toward 

decreasing ozone design values and improving ozone air quality.

Response: The EPA disagrees with this comment based on 

several factors. First, current (i.e., 2013-2015) ozone design 

values in many portions of the eastern U.S. may be lower than 

what might otherwise have been expected due to cooler than 

normal temperatures during the summers of 2013, 2014, and 2015 

which led to meteorological conditions which were generally 

unfavorable for the formation of high ozone concentrations. An 

examination of historical inter-annual variability in summer 

meteorological conditions in the East indicates that in spite of 

the relatively non-conducive meteorological conditions seen in 

the last 3 years, conditions more favorable to ozone formation 

have often occurred in the past and are likely to reoccur in the 

future, therefore leading to the risk of a violation of the 

NAAQS. See the AQM TSD for more details. 

Second, ambient monitoring data for maintenance sites that 

are currently measuring attainment suggest that these sites are 

at risk of violating the NAAQS. Table V.D-3 provides the 2013-

2015 design values and the 4th highest annual 8-hour daily 

maximum ozone concentrations used to calculate these design 

values for each of the maintenance receptors that are currently 
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measuring attainment. The data in Table V.D-3 indicate (1) seven 

of the nine sites had measured 4th high values117 which exceed the 

level of the NAAQS in at least one of the years during this 3-

year time period and (2) 4th high ozone concentration increased 

from 2014 to 2015 at all but one of these sites. There were 

increases in measured 4th high values between 2013 and 2015 at 

all but one of these sites (with the highest increase of 22 ppb 

occurring in Harris County TX), despite the fact that ozone 

precursor emissions are continuing to trend downward.118 In 

addition, preliminary monitoring for 2016 also indicates that 

ozone has increased, based on 4th high values, in 2016 compared 

to the concentrations that were measured in 2014 at most of the 

receptor sites.119 This shows that the influence of meteorology 

on measured ozone values can overwhelm the general downward 

trend in emissions. Thus, given the variability of 

meteorological conditions, there is every reason to believe that 

these maintenance sites that are currently measuring attainment 

are at risk of violating the NAAQS in 2017, as projected by the 

EPA’s modeling.

 

117 Ozone season measured daily 4th high 8-hour average ozone concentrations 

are used to calculate design values. The design value is a 3 year average of 

the 4th high values. See 40 CFR Part 50, Appendix P to Part 50. 

118 See the AQM TSD

119 This is based on preliminary 2016 data available from the Air Quality 

System (AQS) and AirNow as of August 23, 2016, which represents only a 

portion of the ozone season. This data has not been certified by state 

agencies.
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The EPA believes it is therefore appropriate and reasonable 

to use the maximum design value to identify receptors that may 

have maintenance problems in the future. This approach uses 

measured data in order to establish potential air quality 

outcomes at each receptor that take into account the variable 

meteorological conditions present across the entire period of 

measured data (2009 to 2013). The EPA interprets the maximum 

future design value to be a potential future air quality outcome 

consistent with the meteorology that yielded maximum measured 

concentrations in the ambient data set analyzed for that 

receptor. The EPA construes the average design value at a 

receptor to be a reasonable projection of future air quality in 

that area under “average” conditions. However, the EPA also 

recognizes that previously experienced meteorological conditions 

(e.g., dominant wind direction, temperatures, air mass patterns) 

that promote ozone formation, may recur in the future. The 

maximum design value gives a reasonable projection of future air 

quality at the receptor under a scenario in which such 

conditions do, in fact, recur. It also identifies upwind 

emissions that under those circumstances could interfere with 

the downwind area’s ability to maintain the NAAQS.

D. Air Quality Modeling to Identify Nonattainment and 

Maintenance Receptors
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The following is a brief summary of the procedures for 

projecting future-year 8-hour ozone average and maximum design 

values to 2017 to determine nonattainment and maintenance 

receptors. Consistent with the EPA’s modeling guidance the 

agency uses the air quality modeling results in a “relative” 

sense to project future concentrations. That is, the ratios of 

future year model predictions to base year model predictions are 

used to adjust ambient ozone design values120 up or down 

depending on the relative (percent) change in model predictions 

for each location. The modeling guidance recommends using 

measured ozone concentrations for the 5-year period centered on 

the base year as the air quality data starting point for future 

year projections. This average design value is used to dampen 

the effects of inter-annual variability in meteorology on ozone 

concentrations and to provide a reasonable projection of future 

air quality at the receptor under "average" conditions. Because 

the base year for this rule is 2011, the EPA is using the base 

period 2009-2013 ambient ozone design value data in order to 

project 2017 average design values in a manner consistent with 

the modeling guidance. 

 

120 The ozone design value at a particular monitoring site is the 3-

year average of the annual 4th highest daily maximum 8-hour ozone 

concentration at that site. See 40 CFR Part 50, Appendix P to Part 50.
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The approach for projecting future ozone design values 

involved the projection of an average of up to 3 design value 

periods, which include the years 2009-2013 (design values for 

2009-2011, 2010-2012, and 2011-2013). The 2009–2011, 2010-2012, 

and 2011-2013 design values are accessible at 

www.epa.gov/airtrends/values.html. The average of the 3 design 

values creates a “5-year weighted average” value. The 5-year 

weighted average values were then projected to 2017. To project 

8-hour ozone design values, the agency used the 2011 base year 

and 2017 future base-case model-predicted ozone concentrations 

to calculate relative response factors (RRFs) for the location 

of each monitoring site. The RRFs were applied to the 2009-2013 

average ozone design values and the individual design values for 

2009-2011, 2010-2012, and 2011-2013. Details of this approach 

are provided in the AQM TSD.

Projected design values that are greater than or equal to 

76.0 ppb are considered to be violating the NAAQS in 2017. As 

noted previously, nonattainment receptors are those sites that 

are violating the NAAQS based on the most recent measured air 

quality data and also have projected average design values of 

76.0 ppb or greater. Therefore, as an additional step, for those 

sites that are projected to be violating the NAAQS based on the 

average design values in 2017, the EPA examined the most recent 
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measured design value data to determine if the site was 

currently violating the NAAQS. For the final rule, the agency 

examined ambient data for the 2013-2015 period, which is the 

most recent available measured design values at the time of this 

rule. 

Maintenance-only receptors therefore include both (1) those 

sites with projected average design values above the NAAQS that 

are currently measuring clean data, and (2) those sites with 

projected average design values below the level of the NAAQS, 

but with projected maximum design values of 76.0 ppb or greater. 

The EPA notes that the 2017 ozone nonattainment receptors are 

inclusive of areas that, in addition to having projected 

nonattainment, may have maintenance issues in the future, since

the maximum design values for each of these sites is always 

greater than or equal to the average design value.

Table V.D-1 contains the ambient 2009-2013 base period 

average and maximum 8-hour ozone design values, the 2017 

projected baseline average and maximum design values, and the 

ambient 2013-2015 design values for the 6 sites in the eastern 

U.S. projected to be 2017 nonattainment receptors. Table V.D-2 

contains this same information for the 13 maintenance-only sites 

in the eastern U.S. The design values for all monitoring sites

in the U.S. are provided in docket.
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Table V.D-1. Average and Maximum 2009-2013 and 2017 Baseline 8-

Hour Ozone Design Values and 2013-2015 Design Values (ppb) at 

Projected Nonattainment Sites in the Eastern U.S. (Nonattainment 

Receptors)

Monitor 

ID

State County Average 

Design 

Value 

2009-

2013

Maximum 

Design 

Value 

2009-

2013

Average 

Design 

Value 

2017

Maximum 

Design 

Value 

2017

2013-

2015 

Design 

Value

090019003 Connecticut Fairfield 83.7 87 76.5 79.5 84

090099002 Connecticut New Haven 85.7 89 76.2 79.2 78

480391004 Texas Brazoria 88.0 89 79.9 80.8 80

484392003 Texas Tarrant 87.3 90 77.3 79.7 76

484393009 Texas Tarrant 86.0 86 76.4 76.4 78

551170006 Wisconsin Sheboygan 84.3 87 76.2 78.7 77

Table V.D-2. Average and Maximum 2009-2013 and 2017 Baseline 8-

Hour Ozone Design Values and 2013-2015 Design Values (ppb) at 

Sites in the Eastern U.S. that are Projected Maintenance-Only 

Receptors

Monitor 

ID

State County Average 

Design 

Value 

2009-

2013

Maximum 

Design 

Value 

2009-

2013

Average 

Design 

Value 

2017

Maximum 

Design 

Value 

2017

2013-

2015 

Design 

Value

090010017 Connecticut Fairfield 80.3 83 74.1 76.6 81

090013007 Connecticut Fairfield 84.3 89 75.5 79.7 83

211110067 Kentucky Jefferson 85.0 85 76.9 76.9 N/A121

240251001 Maryland Harford 90.0 93 78.8 81.4 71

260050003 Michigan Allegan 82.7 86 74.7 77.7 75

360850067 New York Richmond 81.3 83 75.8 77.4 74

361030002 New York Suffolk 83.3 85 76.8 78.4 72

390610006 Ohio Hamilton 82.0 85 74.6 77.4 70

421010024 Pennsylvania Philadelphia 83.3 87 73.6 76.9 73

481210034 Texas Denton 84.3 87 75.0 77.4 83

 

121 The 2013-2015 design value at this site is not valid due to incomplete data 

for 2013. There are valid 4th high measured concentrations for 2014 and 2015 

and therefore the site may have valid design value data when the 2014-2016 

data is complete. The 2014 4th high value at this site was 70 ppb and the 2015 

4th high value at this site was 76 ppb. In addition, there is one other 

monitoring site in Jefferson County KY which has a valid 2013-2015 design 

value of 66 ppb. There is one other site in the Louisville CBSA which has a 

slightly higher 2013-2015 design value of 68 ppb (site 211850004 in Oldham 

County KY). Since there is no valid design value data that indicates that the 

Jefferson County receptor or any other monitoring site in Jefferson County or 

the Louisville metropolitan area is currently exceeding the 2008 NAAQS, for 

the purposes of this final rule, the Jefferson County KY receptor will be 

considered a maintenance receptor.” 
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Monitor 

ID

State County Average 

Design 

Value 

2009-

2013

Maximum 

Design 

Value 

2009-

2013

Average 

Design 

Value 

2017

Maximum 

Design 

Value 

2017

2013-

2015 

Design 

Value

482010024 Texas Harris 80.3 83 75.4 77.9 79

482011034 Texas Harris 81.0 82 75.7 76.6 74

482011039 Texas Harris 82.0 84 76.9 78.8 69

Table V.D-3. Ambient Ozone Design Values for 2013-2015 and the 

4th Highest 8-Hour Daily Maximum Ozone Concentrations (ppb) for 

Each Maintenance-Only Receptor that is Currently Measuring 

Attainment.

Monitor ID State County 2013-

2015 

Design 

Value

2013 

4th 

Highest 

Value

2014 

4th 

Highest 

Value

2015 

4th 

Highest 

Value

211110067 Kentucky Jefferson N/A N/A 70 76*

240251001 Maryland Harford 71 72 67 74

260050003 Michigan Allegan 75 78* 77* 72

360850067 New York Richmond 74 69 68 77*

361030002 New York Suffolk 72 72 66 78*

390610006 Ohio Hamilton 70 69 70 72

421010024 Pennsylvania Philadelphia 73 68 72 79*

482011034 Texas Harris 74 69 66 88*

482011039 Texas Harris 69 69 63 77*

*Indicates 4th highest values that exceed the NAAQS.

Comment: The EPA received comments on the approach for 

projecting future year design values for monitoring sites 

located in certain coastal areas (i.e., monitoring sites located 

in southern Connecticut along Long Island Sound, in Wisconsin 

and Michigan along Lake Michigan and in Maryland along the 

Chesapeake Bay). Some commenters said that the relative response 

factors for coastal sites should be based on modeled ozone in 

the grid cell containing the monitoring site or “land” cells 
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only, rather than the grid cell with the highest 2011 base case 

modeled value from among the 3 by 3 matrix of grid cells 

surrounding the monitoring site (i.e., the 3 x 3 matrix 

approach). Some commenters said that using the 3 x 3 approach 

for coastal sites can result in the use of modeled data from 

grid cells over water, which the commenters claim are not 

representative of the location of the monitor. These commenters 

contend that modeled values from “over water” cells are biased 

high and will overstate projected 2017 design values at coastal 

sites. In this regard, the commenters said EPA should consider 

using the modeled data in the grid cell containing the 

monitoring site or use the highest value in “over land” grid 

cells adjacent to the monitoring site. 

Commenters examined model performance in the grid cell 

that contained the monitor and also compared these measured 

values to the “highest” modeled value in the 3 x 3 grid cell 

matrix surrounding the monitoring site. They contend that higher 

modeled ozone concentrations from the 3 x 3 matrix overstate 

concentrations measured at the monitoring site and, as a result, 

commenters claim that using the 3 x 3 modeled values will lead 

to inaccurate future model projections.

Response: EPA first notes that the modeling guidance recommends 

calculating relative response factors based on the highest 
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values in the vicinity of the monitoring site (i.e., the 3 x 3 

matrix approach) in part because limitations in the inputs and 

model physics can affect model precision at the grid cell level. 

Allowing some leeway in the precision of the predicted location 

of daily maximum ozone concentrations can help assure that 

possibly artificial, fine scale variations do not inadvertently 

impact an assessment of modeled ozone response. In addition, 

monitors are sometimes located very close to the border of two 

or more grid cells. For both of these reasons, choosing to 

calculate the model response from the nearby grid cell with the 

highest modeled ozone value is likely to be most representative 

of model response during high measured ozone conditions. In 

addition, coastal sites by the nature of their location near 

large water bodies often measure ozone concentrations in air 

from over the water when winds are blowing from the water to the 

land. Such wind flows can occur as part of a broader “synoptic 

scale” wind pattern and/or during more local scale onshore wind 

flows associated with a “sea breeze”, “sound breeze”, “lake 

breeze”, or “bay breeze” depending on the nature of the adjacent 

body of water. Thus, it is appropriate to consider modeled 

values from both “over water” and “over land” grid cells to 

represent ozone concentrations which may impact monitoring sites 

in coastal areas.
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The commenters also compared measured ozone values at 

monitoring locations to the highest modeled concentrations in 

the 3 x 3 grid cells surrounding the monitor and found that 

modeled ozone in grid cells over the water (where there are no 

monitoring sites) often “over predicted” the measured values at 

the monitors. The commenters claim that this will lead to an 

overstatement of future year design values and inaccurate future 

year values. The EPA finds no basis for this conclusion. First, 

the components of the modeling system used for this final rule, 

(i.e., the photochemical grid model, the meteorological model, 

emissions models, and input data) are based on state-of-thescience methods and data that are designed to represent the 

physical and chemical processes associated with the formation, 

transport, and fate of ozone and precursor pollutants. The 

intent of the model evaluation is to use available measurements 

to gain confidence in the use of the modeling system not only to 

predict concentrations for times and locations where there are 

measurements, but also to provide credible estimates of base 

year concentrations in other locations which can be used to

project future year concentrations. Second, the EPA is not using 

the absolute modeled concentrations to determine future year 

(2017) design values. As described in the preamble and the AQM 

TSD, the EPA projects future year design values based on the 
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percent change (i.e., relative response) in ozone using 

predictions from a model simulation for 2011 and predictions 

from a corresponding model simulation for 2017. The relative 

response factors based on the modeled data from the 3 x 3 matrix 

approach are applied to measured ozone design value. 

For the final rule, the EPA performed an analysis that 

compared the 2017 projected design values based on applying the 

3 x 3 matrix approach recommended in EPA’s modeling guidance to 

an approach that relies exclusively on modeled values in the 

grid cell containing the monitoring (i.e., monitor-cell 

approach). This analysis was performed for ozone monitoring 

sites nationwide including the coastal sites of concern to 

commenters. A data file with the projected 2017 design values 

using the 3 x 3 matrix approach and the monitor-cell approach at 

individual monitoring sites can be found in the docket.

In our analysis we examined the data separately for each of four 

groupings of monitoring sites: (1) all sites nationwide, (2) all 

sites in the East, (3) all nonattainment and maintenance 

receptors identified in this rule, and (4) the set of coastal 

sites of particular concern to the commenters together with a

coastal site in Harford Co., MD that is also receptor for this 

final rule. The specific set of 8 coastal sites analyzed as a 

separate group include Fairfield Co., CT sites 090010017, 
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090013007, and 090019003, New Haven Co., CT 090093002, Baltimore 

Co., MD 240053001, Harford Co., MD 240251001, Allegan Co., MI, 

260050003, and Sheboygan Co, WI 551170006. Note that all of 

these sites, except for the site in Baltimore Co., MD are 

receptors for this final rule. The results indicate that the 3 x 

3 approach results in lower or equivalent projected 2017 design 

values compared to the monitor-cell approach at 76 percent of 

the monitoring sites nationwide. That is, at a majority of the 

monitoring sites, the 3 x 3 approach which relies on the highest 

base year concentrations in the vicinity of the monitoring site 

tends to be more responsive to emissions reductions than only 

using data from the grid cell containing the monitor. For the 

Eastern U.S., 75 percent of the monitoring sites had lower 

projected 2017 design values with the 3 x 3 approach, compared 

to the monitor-cell approach. At 14 of the 19 nonattainment and 

maintenance receptors for this rule, the 3 x 3 approach design 

value is either lower or within 0.5 ppb122 of the corresponding 

value from the monitor-cell approach. Finally, for the 8 coastal 

sites, the 3 x 3 approach on balance does not result in an 

overall notable bias compared to the monitor-cell approach. 

Specifically, at half of these sites the 3 x 3 approach design 

 

122 “In this analysis “within 0.5 ppb” includes values that greater than or 

equal to -0.5 ppb and also less than or equal to 0.5 ppb.
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value is lower or within 0.5 ppb of the corresponding value from 

the monitor-cell approach. EPA does not believe that it would be 

appropriate to use the 3 x 3 approach for some coastal receptors 

and the single monitor-cell approach for other coastal 

receptors, depending solely on the outcome as to which approach 

yields lower future design value at an individual receptor site. 

Based on the results of this analysis the EPA continues to 

believe that the 3 x 3 approach is appropriate for projecting

design values for this rule and provides for regional 

consistency in the projection methodology across all sites. 

Comment: Commenters contend that the EPA is not 

appropriately considering international emissions in the process 

of identifying downwind nonattainment and maintenance receptors. 

The commenters cite CAA section 179B and contend that it 

requires the Administrator to approve plans that would be 

sufficient to attain or maintain the NAAQS but for emissions 

emanating from outside of the U.S. They therefore contend that, 

where a receptor in the EPA’s modeling would attain or maintain 

the standard when international emissions are accounted for, the 

EPA has no authority to require emissions from upwind states 

pursuant to section 110(a)(2)(D)(i)(I). Commenters state that 

such reduction requirements would constitute the over-control of 

emissions from upwind states.
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The commenters explicitly recommend that the EPA exclude 

the projected contributions from Canada and Mexico from the 

projected design values before comparing the projections to the 

NAAQS for purposes of identifying receptors. Commenters further 

recommend that the EPA exclude a “conservatively calculated” 5 

percent of EPA-estimated contributions attributable to the 

anthropogenic fraction of boundary concentrations. The 

commenters propose that this approach would result in fewer 

receptors and relieve upwind states of the obligation to make 

emission reductions associated with these receptors. 

Response: The EPA disagrees with commenters that section 

179B of the Clean Air Act obviates the good neighbor obligations 

imposed upon states by section 110(a)(2)(D)(i)(I) of the Act. 

First, commenters misunderstand the provisions of section 

179B. Section 179B permits the EPA to approve an attainment plan 

or plan revision for areas that could attain the relevant NAAQS 

by the statutory attainment date “but for” emissions emanating 

from outside the U.S. When applicable, this CAA provision 

relieves states from imposing control measures on emissions 

sources in the state’s jurisdiction beyond those necessary to 

address reasonably controllable emissions from within the U.S.

Specifically, CAA section 179B(a) provides that the EPA shall 

approve a plan for such an area if: (i) the plan meets all other 
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applicable requirements of the CAA, and (ii) the submitting 

state can satisfactorily demonstrate that “but for emissions 

emanating from outside the United States,” the area would attain 

and maintain the relevant NAAQS. In addition, CAA section 

179B(b) applies specifically to the ozone NAAQS and provides 

that if a state demonstrates that an ozone nonattainment area 

would have timely attained the NAAQS by the applicable 

attainment date “but for emissions emanating from outside of the 

United States,” then the area can avoid extension of the ozone 

attainment dates pursuant to CAA section 181(a)(5), the 

application of fee provisions of CAA section 185, and the 

mandatory reclassification provisions under CAA section 

181(b)(2) for areas that fail to attain the ozone NAAQS by the

applicable attainment date. 

Commenters fail to acknowledge that, even if an area is 

impacted by emissions from outside the U.S., CAA section 179B 

does not affect the designations process. The designations 

process is meant to protect public health and welfare. 

Designating an area nonattainment for a particular NAAQS ensures 

that the public is informed that the air quality in a specific 

area exceeds the standard. Congress determined that in 

nonattainment areas, there should be adequate safeguards to 

protect public health and welfare. For example Congress required 
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such areas to have nonattainment new source review permitting 

programs, to ensure that air quality is not further degraded. 

Accordingly, areas with design values above the NAAQS are 

designated nonattainment and classified with a classification as 

indicated by actual ambient air quality. As a result of 

designation and classification, the state is subject to the 

applicable requirements, including nonattainment new source 

review, conformity, and other measures prescribed for 

nonattainment areas by the CAA. Section 179B of the CAA does not 

provide for any relaxation of mandatory emissions control 

measures (including contingency measures) or the prescribed 

emissions reductions; it only eliminates the obligation for an 

attainment demonstration that demonstrates attainment and 

maintenance of the NAAQS, which is conditioned upon the state 

meeting all other attainment plan requirements, and voids 

certain consequences of an area’s failure to attain, including 

mandatory reclassifications.

CAA section 179B also does not alter the CAA’s general 

construct expressed in subpart 1 of part D that states with 

nonattainment areas are expected to adopt reasonable emissions 

controls to lessen emissions of criteria pollutants to promote 

citizen health protection. The construct ensures that states 

will take reasonable actions to mitigate the public health 
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impacts of exposure to ambient levels of pollution that violate 

the NAAQS by imposing reasonable control measures on the sources 

that are within the jurisdiction of the state regardless of 

impacts from interstate or international emissions. The primary 

purpose of part D of Title I of the CAA is to achieve emission 

reductions so that people living in a nonattainment area receive 

the public health protection intended by the NAAQS.

In sum, section 179B provides an important tool that 

provides states relief from the requirement to demonstrate 

attainment—and from the more stringent planning requirements 

that would result from failure to attain—in areas where, even 

though the air agency has taken appropriate measures to address 

air quality in the influenced area, emissions from outside of 

the U.S. prevent attainment. The provision does not absolve 

states of the obligation to impose reasonable emission controls 

even where states can demonstrate that the area would attain 

“but for” the impact of international emissions. The commenters 

do not explain why, given the obligation of downwind states with 

designated nonattainment areas to impose reasonable controls on 

emissions, upwind states should not also be subject to a similar 

obligation to take certain reasonable steps to reduce emissions 

impacting those downwind areas.
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The commenters have not explained why the terms of section 

179B require its application to EPA’s evaluation of upwind 

state’s interstate transport obligations. Section 179B is 

located in subpart D of title I, which addresses plan 

requirements for designated nonattainment areas. As just 

described, the specific terms of section 179B outline which 

nonattainment area requirements will and will not apply upon 

approval of a section 179B demonstration, none of which apply 

directly to upwind states via section 110(a)(2)(D)(i)(I). In 

particular, the good neighbor provision does not require upwind 

areas to “demonstrate attainment and maintenance” of the NAAQS. 

Rather, the statute requires upwind states to prohibit emissions 

which will “contribute significantly to nonattainment” or 

“interfere with maintenance” of a NAAQS. As discussed further 

in section IV.B.1, while upwind states must address their fair 

share of downwind air quality problems, the EPA has not 

interpreted this provision to hold upwind areas responsible for

bringing downwind areas into attainment. Therefore, the relief 

provided by section 179B(a) and (b) from the obligation to 

demonstrate attainment, extension of the attainment date, and 

mandatory reclassifications, is simply not applicable to 

downwind states. 
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Even if section 179B were in some manner applicable to 

upwind states’ transport obligations, the EPA does not believe 

that the contribution of international emissions should impact 

EPA’s identification of downwind nonattainment and maintenance 

receptors affected by the interstate transport of emissions. 

These receptors represent areas that the EPA projects will have 

difficulty attaining and maintaining the NAAQS, and which 

therefore require adequate safeguards to protect public health 

and welfare. The EPA therefore does not agree that, when 

identifying downwind air quality problems for purposes of 

interstate transport, section 179B requires that we subtract the 

contributions of international emissions from the projected 

design values. This would be inconsistent with EPA’s approach to 

area designations and is simply not required by the plain 

language of the statute. Moreover, such an interpretation would 

allow downwind and upwind areas to make no efforts to address 

clear violations of the NAAQS, leaving the area’s citizens to 

suffer the health and environmental consequences of such 

inaction.

Moreover, just as any state with a nonattainment area –

including downwind states – must take reasonable steps to 

control emissions even where an area is impacted by 

international emissions, the EPA believes that it is appropriate 
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for upwind states to also adopt reasonable emissions controls to 

lessen the impact of emissions generated in their state and 

subsequently transported to downwind areas. As noted in Section 

IV of the preamble, the EPA does not view the obligation under 

the good neighbor provision as a requirement for upwind states 

to bear all of the burden for resolving downwind air quality 

problems. Rather, it is an obligation that upwind and downwind 

states share responsibility for addressing air quality problems. 

If, after implementation of reasonable emissions reductions by 

an upwind state, a downwind air quality problem persists, 

whether due to international emissions or emissions originating 

within the downwind state, the EPA can relieve the upwind state 

of the obligation to make additional reductions to address that 

air quality problem. But the statute does not absolve the upwind 

state of the obligation to make reasonable reductions in the 

first instance. 

The EPA took just such an approach in the original CSAPR 

rulemaking when calculating annual SO2 emissions budgets for 

states linked to downwind PM2.5 air quality problems. There, the 

EPA imposed budgets based on a level of control stringency 

equivalent to $2,300 per ton of SO2 emissions. Despite the 

persistence of downwind air quality problems to which certain 

upwind states were linked, the EPA concluded that this level of 
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control stringency represented the upwind states’ full transport 

obligation with respect to the PM2.5 standards and additional 

controls were not reasonable because significant reductions 

could not be achieved at higher costs. 76 FR 48208, 48257-259.

Accordingly, the EPA also does not agree that imposing 

emission reductions on upwind states linked to areas affected by 

international emissions based on the implementation of 

reasonable control measures would result in over-control. As

discussed in section VII.D of the preamble, the emissions 

reductions required by this rulemaking are based on relatively 

modest investments in turning on and optimizing already existing 

SCRS and installing a limited amount of combustion controls, 

which is feasibly and reasonably achieved by the 2017 ozone 

season. Moreover, the emissions reductions required by this 

rulemaking do not fully resolve most of the air quality problems 

identified in this rule. As discussed further in section VI.D, 

the D.C. Circuit has identified those circumstances that would 

constitute over-control pursuant to CAA section 

110(a)(2)(D)(i)(I), and those circumstances are not present 

here.

E. Pollutant Transport from Upwind States

1. Air Quality Modeling to Quantify Upwind State Contributions
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This section documents the procedures the EPA used to 

quantify the impact of emissions from specific upwind states on 

2017 8-hour design values for identified downwind nonattainment 

and maintenance receptors. The EPA used CAMx photochemical 

source apportionment modeling to quantify the impact of 

emissions in specific upwind states on downwind nonattainment 

and maintenance receptors for 8-hour ozone. CAMx employs

enhanced source apportionment techniques that track the 

formation and transport of ozone from specific emissions sources 

and calculates the contribution of sources and precursors (NOX

and VOC) to ozone for individual receptor locations. The 

strength of the photochemical model source apportionment 

technique is that all modeled ozone at a given receptor location 

in the modeling domain is tracked back to specific sources of 

emissions and boundary conditions to fully characterize culpable 

sources.

The EPA performed nationwide, state-level ozone source 

apportionment modeling using the CAMx Ozone Source Apportionment 

Technology/Anthropogenic Precursor Culpability Analysis 

(OSAT/APCA) technique123 to quantify the contribution of 2017 

baseline NOX and VOC emissions from all sources in each state to 

 

123 As part of this technique, ozone formed from reactions between 

biogenic VOC and NOx with anthropogenic NOx and VOC are assigned to the 

anthropogenic emissions.
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projected 2017 ozone concentrations at air quality monitoring 

sites. The EPA continues to believe that the OSAT/APCA tool is 

the most appropriate source apportionment technique for 

quantifying contributions for the purposes of this rule because 

it is constructed to provide source culpability data to inform 

the design of emissions control strategies.124 In the source 

apportionment model run, the EPA tracked the ozone formed from 

each of the following contribution categories (i.e., “tags”):

 States – anthropogenic NOX and VOC emissions from each state 

tracked individually (emissions from all anthropogenic sectors 

in a given state were combined);

 Biogenics – biogenic NOX and VOC emissions domain-wide 

(i.e., not by state);

 Boundary Concentrations – concentrations transported into 

the modeling domain;

 Tribes – the emissions from those tribal lands with point 

source inventory data in the 2011 NEI (contributions from 

individual tribes were not modeled); 

 Canada and Mexico – anthropogenic emissions from sources in 

the portions of Canada and Mexico included in the modeling 

 

124 Comprehensive Air Quality Model with Extensions Version 6.20 User’s 

Guide. ENVIRON International Corporation, Novato, CA, March 2015.
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domain (contributions from Canada and Mexico were not modeled 

separately);

 Fires – combined emissions from wild and prescribed fires

domain-wide (i.e., not by state); and

 Offshore – combined emissions from offshore marine vessels 

and offshore drilling platforms (i.e., not by state).

The contribution modeling provided contributions to ozone from 

anthropogenic NOX and VOC emissions in each state, individually. 

The contributions to ozone from chemical reactions between 

biogenic NOX and VOC emissions were modeled and assigned to the 

“biogenic” category. The contributions from wild fire and 

prescribed fire NOX and VOC emissions were modeled and assigned 

to the “fires” category. The contributions from the “biogenic”, 

“offshore”, and “fires” categories are not assigned to 

individual states nor are they included in the state 

contributions.

The CAMx OSAT/APCA model run was performed for the period 

May 1 through September 30 using the projected 2017 baseline

emissions and 2011 meteorology for this time period. The hourly 

contributions125 from each tag were processed to obtain the 8-

 

125 Contributions from anthropogenic emissions under “NOX-limited” and 

“VOC-limited” chemical regimes were combined to obtain the net 

contribution from NOX and VOC anthropogenic emissions in each state.
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hour average contributions corresponding to the time period of 

the 8-hour daily maximum concentration on each day in the 2017 

model simulation. This step was performed for those model grid 

cells containing monitoring sites in order to obtain 8-hour 

average contributions for each day at the location of each site. 

The model-predicted contributions on the days with high modeled 

concentrations in 2017 were then applied in a relative sense to 

quantify the contributions to the 2017 average design value at 

each site. The resulting 2017 average contributions from each 

tag to each monitoring site in the eastern and western U.S. 

along with additional details on the source apportionment 

modeling and the procedures for calculating contributions can be 

found in the AQM TSD. 

The average contribution metric is intended to provide a 

reasonable representation of the contribution from individual 

states to the projected 2017 design value, based on modeled 

transport patterns and other meteorological conditions generally 

associated with modeled high ozone concentrations at the 

receptor. An average contribution metric constructed in this 

manner is beneficial since the magnitude of the contributions is 

directly related to the magnitude of the design value at each 

site.
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The largest contribution from each state in the East to any 

single 8-hour ozone nonattainment receptor in a downwind state 

is provided in Table V.E-1. The largest contribution from each 

state in the East to any single 8-hour ozone maintenance-only

receptor in a downwind state is also provided in Table V.E-1.

Table V.E-1. Largest Contribution to Downwind 8-Hour Ozone 

Nonattainment and Maintenance Receptors for Each State in the 

Eastern U.S.

Upwind 

State

Largest 

Downwind 

Contribution 

to 

Nonattainment 

Receptors 

(ppb)

Largest 

Downwind 

Contribution 

to 

Maintenance 

Receptors 

(ppb)

AL 0.99 0.73

AR 1.00 2.07

CT 0.00 0.46

DE 0.38 1.32

DC 0.07 0.86

FL 0.71 0.75

GA 0.60 0.62

IL 17.90 23.61

IN 6.49 12.32

IA 0.58 0.81

KS 1.13 1.22

KY 0.68 10.88

LA 3.01 3.20

ME 0.00 0.01

MD 2.12 5.22

MA 0.12 0.06

MI 2.62 1.27

MN 0.40 0.36

MS 0.81 0.79

MO 1.67 3.78

NE 0.35 0.27

NH 0.02 0.02

NJ 9.52 11.90

NY 18.50 18.81

NC 0.51 0.50

ND 0.06 0.22
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Upwind 

State

Largest 

Downwind 

Contribution 

to 

Nonattainment 

Receptors 

(ppb)

Largest 

Downwind 

Contribution 

to 

Maintenance 

Receptors 

(ppb)

OH 1.83 3.78

OK 2.24 1.62

PA 9.28 14.61

RI 0.03 0.01

SC 0.15 0.30

SD 0.08 0.12

TN 0.50 1.82

TX 2.18 2.64

VT 0.01 0.01

VA 1.92 5.21

WV 1.04 3.31

WI 0.33 2.52

2. Application of Screening Threshold

Once the EPA has quantified the magnitude of the 

contributions from each upwind state to downwind nonattainment 

and maintenance receptors, it then uses an air quality screening 

threshold to identify upwind states that contribute to downwind 

ozone concentrations in amounts sufficient to “link” them to the 

downwind nonattainment and maintenance receptors and justify 

further analysis of potential emission reductions to address 

significant contribution to nonattainment and interference with 

maintenance of the 2008 ozone NAAQS in other states. As 

discussed previously in section IV, the EPA is establishing an 

air quality screening threshold calculated as one percent of the 
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2008 ozone NAAQS. Specifically, the agency has calculated an 8-

hour ozone value for this air quality threshold of 0.75 ppb. 

States in the East126 whose contributions to a specific 

receptor meet or exceed the screening threshold are considered 

linked to that receptor; those states’ ozone contributions and 

emissions (and available emission reductions) are analyzed 

further, as described in section VI, to determine whether and 

what emissions reductions might be required from each state. 

States in the East whose contributions are below the threshold 

are not included in the rule and are considered to make 

insignificant contributions to projected downwind air quality 

problems. Accordingly, as discussed in section IV, the EPA has 

determined that sources in these states need not make any 

further emissions reductions in order to address the good 

neighbor provision with respect to the 2008 ozone NAAQS.

Based on the maximum downwind contributions identified in 

Table V.E-1, the following states contribute at or above the 

0.75 ppb threshold to downwind nonattainment receptors: Alabama, 

Arkansas, Illinois, Indiana, Kansas, Louisiana, Maryland, 

 

126 As discussed in section IV, the EPA’s assessment shows that there 

are problem receptors in the West where western states contribute 

amounts greater than or equal to the screening threshold used to 

evaluate eastern states (i.e., 1 percent of the NAAQS), but for a 

number of reasons the EPA is not addressing transport in the West in 

this rulemaking. 
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Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, 

Oklahoma, Pennsylvania, Texas, Virginia, and West Virginia. 

Based on the maximum downwind contributions in Table V.D-1, the 

following states contribute at or above the 0.75 ppb threshold 

to downwind maintenance-only receptors: Arkansas, Delaware, 

District of Columbia, Florida, Illinois, Indiana, Iowa, Kansas, 

Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, 

New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Tennessee, 

Texas, Virginia, West Virginia, and Wisconsin. In the proposed 

rule North Carolina was linked to a maintenance receptor in 

Baltimore Co., MD (site 240053001). North Carolina was not 

linked to any other receptor in the proposal. In the final rule 

modeling, this site is no longer projected to be a receptor 

because the 2017 average and maximum design values for this site 

are projected to be below the level of the NAAQS, and North 

Carolina is not linked to any other nonattainment or maintenance 

receptor, based on the final rule modeling.

Comment: The EPA received comments that the version of CAMx 

used for the proposal modeling (CAMx v6.11) did not include the 

most recent halogen chemistry that would affect ozone 

concentrations in saltwater marine atmospheres and transport of 

ozone from Florida to receptors in Texas. The commenter said 
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that the EPA should include this chemistry in modeling for the 

final rule.

Response: In the EPA’s 2017 modeling for the final rule, 

Florida is modeled to have an average contribution at the 0.75 

ppb threshold to the 2017 design values at two receptors in 

Houston (i.e., Harris County sites 482010024 and 482011034). A 

report by the CAMx model developer on the impact of modeling 

with the latest CAMx halogen chemistry indicates that the 

updated chemistry results in lower modeled ozone in air 

transported over saltwater marine environments for multiple 

days. Specifically, the report notes that on days with multi-day 

transport across the Gulf of Mexico, modeling with the updated 

chemistry could lower 8-hour daily maximum ozone concentrations 

by up to 2 to 4 ppb in locations in eastern Texas, including 

Houston. Air parcel trajectories for individual days used in the 

EPA’s calculation of the contribution from Florida to the 

Houston receptors confirm that on days with high modeled 

transport from Florida to the receptors in Houston, air travels 

for multiple days over the Gulf of Mexico from Florida before 

reaching the receptors in Houston (see the AQM TSD for more 

details). 

In the final rule modeling, the EPA was not able to 

explicitly account for the updated chemistry because this 
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chemistry had not yet been included by the model developer in 

the source apportionment tool in CAMx at the time the modeling 

was performed for this rule. However, because Florida’s maximum 

contribution to receptors in Houston is exactly at the 0.75 ppb 

threshold, the agency believes that if it had performed the 

final rule modeling with the updated halogen chemistry, 

Florida’s contribution would likely be below this threshold.

Therefore, the EPA is not including Florida in the final rule

because it finds that Florida’s contribution to downwind 

nonattainment and maintenance receptors is insignificant when 

this updated halogen chemistry is considered. As described in 

the AQM TSD, the source-receptor transport pattern between 

Florida and Houston involving multi-day transport over the Gulf 

of Mexico is unique such that modeling with the updated halogen 

chemistry would not be expected to affect linkages from other 

upwind states to receptors in Houston or any other linkages from 

upwind states to downwind nonattainment and maintenance 

receptors for this final rule. 

Based on the EPA’s application of the 0.75 ppb threshold, 

the linkages between each upwind state and downwind 

nonattainment receptors and maintenance-only receptors in the 

eastern U.S. are provided in Table V.E-2 and Table V.E-3, 

respectively.
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Table V.E-2. Linkages between Each Upwind State and Downwind 

Nonattainment Receptors in the Eastern U.S.

Upwind 

State

Downwind Nonattainment Receptors

AL Tarrant Co, TX 

(484392003)

Tarrant Co, TX 

(484393009)

AR Brazoria Co, TX 

(480391004)

IL Brazoria Co, TX 

(480391004)

Sheboygan Co, WI 

(551170006)

IN Fairfield Co, CT 

(090019003)

Sheboygan Co, WI 

(551170006)

KS Tarrant Co, TX 

(484392003)

Sheboygan Co, WI 

(551170006)

LA

Brazoria Co, TX 

(480391004)

Tarrant Co, TX 

(484392003)

Tarrant Co, TX 

(484393009)

Sheboygan Co, WI 

(551170006)

MD Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

MI Fairfield Co, CT 

(090019003)

Sheboygan Co, WI 

(551170006)

MS Brazoria Co, TX 

(480391004)

MO Brazoria Co, TX 

(480391004)

Sheboygan Co, WI 

(551170006)

NJ Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

NY Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

OH Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

OK Tarrant Co, TX 

(484392003)

Tarrant Co, TX 

(484393009)

Sheboygan Co, WI 

(551170006)

PA Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

TX Sheboygan Co, WI 

(551170006)

VA Fairfield Co, CT 

(090019003)

New Haven Co, CT 

(090099002)

WV Fairfield Co, CT 

(090019003)
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Table V.E-3. Linkages between Each Upwind States and Downwind 

Maintenance-Only Receptors in the Eastern U.S.

Upwind 

State

Downwind Maintenance Receptors

AR Allegan Co, MI 

(260050003)

Harris Co, TX 

(482011039)

DE Philadelphia Co, 

PA (421010024)

DC Harford Co, MD 

(240251001)

IL

Jefferson Co, KY 

(211110067)

Harford Co, MD 

(240251001)

Allegan Co, MI 

(260050003)

Suffolk Co, NY 

(361030002)

Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)

Harris Co, TX 

(482011039)

IN

Fairfield Co, CT 

(090013007)

Jefferson Co, KY 

(211110067)

Harford Co, MD 

(240251001)

Allegan Co, MI 

(260050003)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)

IA Allegan Co, MI 

(260050003)

KS Allegan Co, MI 

(260050003)

KY

Harford Co, MD 

(240251001)

Richmond Co, NY 

(360850067)

Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)

LA

Denton Co, TX 

(481210034)

Harris Co, TX 

(482010024)

Harris Co, TX 

(482011034)

Harris Co, TX 

(482011039)

MD

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Philadelphia Co, 

PA (421010024)

MI

Fairfield Co, CT 

(090013007)

Jefferson Co, KY 

(211110067)

Harford Co, MD 

(240251001)

Suffolk Co, NY 

(361030002)

Hamilton Co, OH 

(390610006)
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Upwind 

State

Downwind Maintenance Receptors

MS Harris Co, TX 

(482011039)

MO

Allegan Co, MI 

(260050003)

Hamilton Co, OH 

(390610006)

Harris Co, TX 

(482011034)

Harris Co, TX 

(482011039)

NJ

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Philadelphia Co, 

PA (421010024)

NY Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

OH

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Jefferson Co, KY 

(211110067)

Harford Co, MD 

(240251001)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Philadelphia Co, 

PA (421010024)

OK

Allegan Co, MI 

(260050003)

Denton Co, TX 

(481210034)

Harris Co, TX 

(482011034)

Harris Co, TX 

(482011039)

PA

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Harford Co, MD 

(240251001)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

TN Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)

TX Harford Co, MD 

(240251001)

Allegan Co, MI

(260050003)

Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)

VA

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Harford Co, MD 

(240251001)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Philadelphia Co, 

PA (421010024)

WV

Fairfield Co, CT 

(090010017)

Fairfield Co, CT 

(090013007)

Harford Co, MD 

(240251001)

Richmond Co, NY 

(360850067)

Suffolk Co, NY 

(361030002)

Hamilton Co, OH 

(390610006)

Philadelphia Co, 

PA (421010024)
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Upwind 

State

Downwind Maintenance Receptors

WI Allegan Co, MI 

(260050003)

The EPA’s modeling to quantify upwind state EGU NOX emission 

budgets, described in section VI, used a more recent IPM version 

5.15 base case projection as compared to the IPM projection used 

for air quality modeling described here in section V. This more 

recent IPM base case reflects minor updates to IPM model inputs. 

Because this more recent IPM base case projection was not used 

for the air quality modeling for the final rule, the 

aforementioned results do not account for updates which are 

subsequently included in the budget-setting analysis. In order 

to ensure that the budget-setting base case projection would not 

change any conclusions drawn from the air quality modeling, the 

EPA performed an assessment of the budget-setting base case

using a method that relied on the EPA’s air quality modeling 

contribution data as well as projected ozone concentrations from 

the EPA’s 2017 illustrative policy case developed for the 

Regulatory Impact Analysis. For more information about these 

methods, refer to the Ozone Transport Policy Analysis Final Rule 

TSD. This assessment shows no change in the set of nonattainment 

or maintenance receptors identified here in section V. In 

addition to evaluating the status of downwind receptors 

identified for the rule, the EPA evaluated whether the budget-
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setting base case would reduce ozone contributions from upwind 

states to the extent that a previously linked state would have a 

maximum contribution less than the one percent threshold. This 

assessment shows that with the budget-setting base case, all 

previously identified states are expected to remain linked 

(i.e., contribute greater than or equal to one percent of the 

NAAQS) to at least one downwind nonattainment or maintenance 

receptor. Therefore, using the budget-setting base case for the 

final rule does not impact the scope of states linked to 

downwind nonattainment or maintenance receptors relative to the 

modeled base case.

Additionally, after the emissions and air quality modeling 

for the final rule were already underway, Pennsylvania published 

a new RACT rule127 that would require EGU and non-EGU NOX

reductions starting on January 1, 2017. The EPA recognizes that 

the implementation of this final state rule will precede the 

first control period for the final CSAPR Update rule. The agency

believes it is reasonable to evaluate the potential influence of 

the Pennsylvania RACT rule on downwind receptors and state 

linkages identified for this final rule prior to evaluating any 

further EGU NOX reductions for the CSAPR Update rule. Therefore, 

 

127 Published April 23, 2017 (http://www.pabulletin.com/secure/data/vol46/46-

17/694.html)
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because Pennsylvania’s new RACT rule was not represented 

explicitly in the emission inventory and air quality modeling 

already underway, the EPA first added an evaluation of emissions 

and air quality impacts expected to result from Pennsylvania’s 

RACT rule128 before then evaluating air quality impacts of the 

further reductions that might be required under the CSAPR Update 

rule at each uniform control stringency identified. The EPA 

estimates that, for the adjusted historical emission level 

including Pennsylvania RACT, no nonattainment or maintenance 

receptors identified in section V dropped below 76 ppb and 

Pennsylvania’s contribution to downwind ozone problems did not 

drop below one percent of the NAAQS. Therefore, the identified 

receptors and linked upwind states in section V remain 

unchanged.

VI. Quantifying Upwind State EGU NOX Emission Budgets to Reduce 

Interstate Ozone Transport for the 2008 NAAQS

A. Introduction

This section describes the EPA’s methodology for 

quantifying emission budgets to reduce interstate emission

transport for the 2008 ozone NAAQS. The CSAPR Update emission 

 

128 For more information about the EPA’s assessment of Pennsylvania’s RACT 

rule, see the Pennsylvania RACT memo to the docket for this rulemaking.
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budgets limit allowable emissions and represent the emission 

levels that remain after each state makes EGU NOX emission 

reductions that are necessary to reduce interstate ozone 

transport for the 2008 NAAQS. The EPA’s assessment of upwind 

state emission budgets in this rule reflects analysis of uniform 

NOX emission control stringency. Each level of uniform NOX

control stringency represents an estimated marginal cost per ton 

of NOX reduced and is characterized by a set of pollution control 

measures. The EPA applies a multi-factor test, the same multifactor test that was used in the original CSAPR,129 to evaluate 

increasing levels of uniform NOX control stringency. The multifactor test considers cost, available emission reductions, and 

downwind air quality impacts to determine the appropriate level 

of uniform NOX control stringency that addresses the impacts of 

interstate transport on downwind nonattainment or maintenance 

receptors. The uniform NOX emission control stringency, 

represented by marginal cost, also serves to apportion the 

reduction responsibility among collectively-contributing upwind 

states. This approach to quantifying upwind state emission 

reduction obligations using uniform cost was reviewed by the 

Supreme Court in EPA v. EME Homer City Generation, which held 

 

129 See CSAPR, Final Rule, 76 FR 48208 (August 8, 2011).
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that using such an approach to apportion emission reduction 

responsibilities among upwind states that are collectively 

responsible for downwind air quality impacts “is an efficient 

and equitable solution to the allocation problem the Good 

Neighbor Provision requires the Agency to address.” 134 S.Ct. at 

1607.

There are four stages in developing the multi-factor test 

to quantify upwind state emission budgets as to the 2008 ozone 

NAAQS: (1) identify levels of uniform NOX control stringency 

(represented by an estimated marginal cost of control that is 

applied across linked upwind states); (2) evaluate NOX emission 

reductions and corresponding NOX emission budgets (i.e., 

remaining allowable emissions after reductions are made) at each 

identified level of uniform control stringency; (3) assess air 

quality improvements resulting at each level of control; and (4) 

select a level of control stringency by applying the multifactor test to consider cost, available emission reductions, and 

downwind air quality impacts, including ensuring that the 

budgets do not unnecessarily over-control relative to the 

contribution threshold or downwind air quality. 

The multi-factor evaluation informs the EPA’s determination 

of appropriate EGU NOX ozone season emission budgets necessary to 

reduce emissions that significantly contribute to nonattainment 
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or interfere with maintenance of the 2008 ozone NAAQS for the 

2017 ozone season and subsequent control periods. For most CSAPR 

Update states, the emission reductions achieved through 

implementation of these budgets will partially satisfy the EPA’s 

good neighbor FIP obligation to fully prohibit emissions that 

contribute to downwind air quality problems with respect to the 

2008 ozone NAAQS pursuant to CAA section 110 (a)(2)(D)(i)(I).130 

For one state, Tennessee, the emission reductions achieved 

through implementation of its emission budget will fully satisfy 

the EPA’s good neighbor FIP obligation for the 2008 ozone NAAQS. 

Section VII describes the EPA’s approach to implementing these 

emission budgets through updates to the CSAPR NOX ozone season 

trading program.

B. Levels of Uniform Control Stringency 

The following subsections describe the EPA’s analysis to 

establish levels of uniform control stringency for EGU and nonEGU point sources. Each level of uniform NOX control stringency 

is characterized by a set of pollution control measures and 

represents an estimated marginal cost per ton of NOX reduced. 

This section summarizes the EPA’s findings when assessing NOX

reduction strategies and cost. 

 

130 See section IV.B.4 for further discussion of this partial remedy.
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As described in section IV of this preamble, the EPA is 

quantifying near-term ozone season NOX emission reductions to 

reduce interstate emission transport for the 2008 ozone NAAQS in 

order to assist downwind states with meeting the impending July 

20, 2018 Moderate area attainment date. Although this final rule 

does not require or impose any specific technology standards on 

affected sources, the EPA limited its analysis of potential NOX

reductions in each upwind state to those that could be feasibly 

implemented for the 2017 ozone season, which is the last full 

ozone season prior to the July 20, 2018 attainment date. This 

approach ensures that the emission budgets are achievable for 

the 2017 ozone season. The EPA did not further analyze potential 

NOX reductions from strategies that were deemed infeasible to 

implement for the 2017 ozone season for purposes of quantifying 

upwind state emission budgets, but the EPA anticipates

considering those controls in any future action that may be 

necessary to address upwind states’ full emission reduction 

obligations with respect to the 2008 ozone standard. For more 

details on these assessments, refer to the EGU NOX Mitigation 

Strategies Final Rule TSD and the Assessment of Non-EGU NOX

Emission Controls, Cost of Controls, and Time for Compliance 

Final Rule TSD in the docket for this rule.

1. EGU NOX Mitigation Strategies
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In developing levels of uniform control stringency, the EPA 

considered all NOX control strategies that are widely in use by 

EGUs: fully operating existing Selective Catalytic Reduction 

(SCR), including both optimizing NOX removal by existing, 

operational SCRs and turning on and optimizing existing idled 

SCRs; turning on existing idled SNCRs; installing state-of-theart NOX combustion controls; shifting generation to existing 

units with lower-NOX emission rates within the same state; and 

installing new SCRs and SNCRs. For the reasons explained in the 

EGU NOX Mitigation Strategies Final Rule TSD, the EPA determined 

that these EGU NOX mitigation strategies are feasible for the 

2017 ozone season, with the exception of installing new SCRs or 

SNCRs.

The following subsections describe the EPA’s identification 

of uniform levels of NOX emission control stringency. Each level 

of uniform NOX control stringency represents an estimated 

marginal cost per ton of NOX reduced and is characterized by a 

set of pollution control measures. The levels of NOX control 

stringency identified are used in the EPA’s multi-factor test 

described later on.

a. $800 per ton, representing optimizing existing and operating 

SCRs. Optimizing NOX removal for existing and operating SCRs can 

significantly reduce EGU NOX emissions quickly, using investments 
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in pollution control technologies that have already been made. 

SCRs can achieve up to 90 percent reduction in EGU NOX with 

sufficient reagent and installed catalyst. These controls are in 

widespread use across the U.S. power sector. In the 22 state 

CSAPR Update region, approximately 53 percent of coal-fired EGU 

capacity and 76 percent of natural gas combined cycle (NGCC) EGU 

capacity is equipped with SCR. Recent power sector data reveal 

that some SCR controls are being underused. In some cases, SCR 

controls are not fully operating (i.e., the controls could be 

operated at a greater NOX removal rate).131 As described later on 

in this preamble, the EPA finds that optimizing existing and 

operating SCRs is a readily available approach for EGUs to 

reduce NOX emissions.

The EPA identifies $800 per ton as a level of uniform 

control stringency that represents optimizing existing SCR 

controls that are already operating to some extent. The EPA’s 

final analysis for the CSAPR Update rule is informed by comment

on the proposal.132 This cost level is premised on variable 

costs, specifically additional reagent (i.e., ammonia or urea) 

 

131 This assessment is available in the EGU NOX Mitigation Strategies 

Final Rule TSD.

132 The EPA proposed that $500 per ton was a level of uniform control 

stringency that represented optimizing existing SCR controls that are already 

operating to some extent. The EPA received comments suggesting that its cost 

estimates should be revised. Details of the EPA’s final cost analysis can be 

found in the EGU NOX Mitigation Strategies Final Rule TSD. 
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and additional catalyst, being the primary costs incurred for 

optimizing an existing SCR unit that is already operating to 

some extent. More information about this analysis is available 

in the EGU NOX Mitigation Strategies Final Rule TSD. 

b. $1,400 per ton, representing turning on idled existing SCRs

and installing state-of-the-art NOX combustion controls. 

Turning on idled, existing SCRs also can significantly 

reduce EGU NOX emissions quickly, using investments in pollution 

control technologies that have already been made. Recent power 

sector data reveal that, in some cases, SCR controls have been 

idled for several seasons or years. The EPA finds that turning 

on idled SCRs is a readily available approach for EGUs to reduce 

NOX emissions.

The EPA identifies $1,400 per ton as a level of uniform 

control stringency that represents turning on idled SCR 

controls. The EPA’s analysis of this level of uniform control 

stringency for the final CSAPR Update is informed by comment on 

the proposal.133 While the costs of optimizing existing, 

operational SCRs include only variable costs (as described 

earlier), the cost of bringing existing SCR units that are 

 

133 The EPA proposed that $1,300 per ton was a level of uniform control 

stringency that represented turning on idled SCR controls. The EPA received 

comments suggesting that its cost estimates should be revised. Details of the 

EPA’s final cost analysis can be found in the EGU NOX Mitigation Strategies 

Final Rule TSD.
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currently idled back into service considers both variable and 

fixed costs. Variable and fixed costs include labor, maintenance 

and repair, reagent, parasitic load, and ammonia or urea. The 

EPA performed an in-depth cost assessment for all coal-fired 

units with SCRs. More information about this analysis is 

available in the EGU NOX Mitigation Strategies Final Rule TSD, 

which is found in the docket for this rule.

The EPA also includes installing state-of-the-art 

combustion controls in the level of uniform control stringency 

represented by $1,400 per ton. State-of-the-art combustion 

controls such as low-NOX burners (LNB) and over-fire air (OFA) 

can be installed quickly, and can significantly reduce EGU NOX

emissions. In the 22 state CSAPR Update Region, approximately 99

percent of coal-fired EGU capacity in the East is equipped with 

some form of combustion control. Combustion controls alone can 

achieve NOX emission rates of 0.15 to 0.50 lbs/mmBtu.134 Once 

installed, combustion controls reduce NOX emissions at all times 

of EGU operation. The EPA finds that the installation of stateof-the-art combustion controls is a readily available approach 

for EGUs to reduce NOX emissions. 

 

134 Details of the EPA’s assessment of state-of-the-art NOX combustion controls 

are provided in the EGU NOX Mitigation Strategies Final Rule TSD.
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The cost of installing state-of-the-art combustion controls 

per ton of NOX reduced is dependent on the combustion control 

type and unit type. The EPA estimates the cost per ton of stateof-the-art combustion controls to be $500 per ton to $1,200 per

ton of NOX removed. In specifying a representative marginal cost

at which state-of-the-art combustion controls are widely 

available, the EPA uses the conservatively high end of this 

identified range of costs, $1,200 per ton. Because $1,200 per

ton is similar in terms of EGU NOX control stringency to $1,400 

per ton, for purposes of the analysis that follows, the EPA 

includes installing state-of-the-art NOX combustion controls in 

the uniform control stringency level represented by $1,400 per

ton of NOX removed.135

c. $3,400 per ton, representing turning on idled existing SNCRs. 

Turning on idled existing SNCRs can also significantly reduce 

EGU NOX emissions quickly, using investments in pollution control 

technologies that have already been made. SNCRs can achieve up 

to 25 percent reduction in EGU NOX emissions (with sufficient 

reagent). These controls are in widespread use across the U.S. 

 

135 As described in section VI, the EPA’s assessment of emission budgets 

reflecting uniform NOX control stringency represented by $1,400 per ton does 

not over-control as to any upwind state. Only one state, Tennessee, fully 

resolves its obligation at this level of control stringency and Tennessee’s 

emission budget is exactly the same at $800 per ton and $1,400 per ton, 

indicating that it was not necessary for the agency to evaluate a distinct 

level of uniform NOX control stringency linked solely installing state-ofthe-art NOX combustion controls.
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power sector. In the 22 state CSAPR Update region, approximately 

10 percent of coal-fired EGU capacity is equipped with SNCR. 

Recent power sector data reveal that, in some cases, SNCR 

controls have been idled for several seasons or years. The EPA 

finds that turning on idled SNCRs is a readily available 

approach for EGUs to reduce NOX emissions 

The EPA identifies $3,400 per ton as a level of uniform 

control stringency that represents turning on and fully 

operating idled SNCRs. For existing SNCRs that have been idled, 

unit operators may need to restart payment of some fixed and 

variable costs associated with these controls. Fixed and 

variable costs include labor, maintenance and repair, reagent, 

parasitic load, and ammonia or urea. The majority of the total 

fixed and variable operating costs for SNCR is related to the 

cost of the reagent used (e.g., ammonia or urea) and the 

resulting cost per ton of NOX reduction is sensitive to the NOX

rate of the unit prior to SNCR operation. For more details on 

this assessment, refer to the EGU NOX Mitigation Strategies Final 

Rule TSD in the docket for this rule.

d. $5,000 per ton, representing installing new SCRs. The amount 

of time to retrofit with new SCR exceeds the implementation 

timeframes considered in this final rule. It would therefore not 

be feasible to retrofit new SCR to achieve EGU NOX reductions for 
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the 2017, or even 2018, ozone season. Exclusion of new SCR 

installation from this analysis reflects a determination only 

that these strategies are infeasible for implementation of this 

rule, not a determination that they are infeasible or 

inappropriate for consideration of NOX reduction potential to 

address interstate emission transport over a longer timeframe. 

See EGU NOX Mitigation Strategies Final Rule TSD for discussion 

of feasibility of EGU NOX controls for the 2017 ozone season.

The EPA identifies $5,000 per ton as a level of uniform 

control stringency that represents retrofitting a unit with new 

SCR technology. The EPA evaluated this level of uniform NOX

emission control stringency, with the limitation that no new SCR 

systems were installed as a result of the EPA’s analysis for the 

2017 ozone season. The agency examined the cost for retrofitting 

a unit with new SCR technology, which typically attains 

controlled NOX rates of 0.07 lbs/mmBtu, or less. Because this EGU 

NOX reduction strategy is prospective and the EPA does not know 

the exact specifications of EGUs that may find this NOX reduction 

strategy feasible and cost-effective beyond 2017, it performed a 

cost analysis using a representative electric generating unit. A 

coal-fired EGU with an uncontrolled NOX rate of 0.35 lbs/mmBtu, 

retrofitted with an SCR to a lower emission rate of 0.07 

lbs/mmBtu, results in a cost of approximately $5,000 per ton of 
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NOX removed. For more details on this assessment, refer to the 

EGU NOX Mitigation Strategies Final Rule TSD in the docket for 

this rule.

e. $6,400 per ton, representing installing new SNCRs. The amount 

of time to retrofit with new SNCR exceeds the implementation 

timeframes considered in this final rule. It would therefore not 

be feasible to retrofit new SNCR to achieve EGU NOX reductions 

for the 2017, or even 2018, ozone season. Exclusion of new SNCR 

installation from this analysis reflects a determination only 

that these strategies are infeasible for implementation of this 

rule, not a determination that they are infeasible or 

inappropriate for consideration of NOX reduction potential to 

address interstate emission transport over a longer timeframe. 

See EGU NOX Mitigation Strategies Final Rule TSD for discussion 

of feasibility of EGU NOX controls for the 2017 ozone season.

The EPA identifies $6,400 per ton as a level of uniform 

control stringency that represents retrofitting a unit with new 

SNCR technology. The EPA evaluated this level of uniform NOX

emission control stringency, with the limitation that no new 

SNCR systems were installed as a result of the EPA’s analysis

for the 2017 ozone season. SNCR technology provides owners a low 

capital cost option for reducing NOX emissions, albeit at the 

expense of higher operating costs. The higher cost per ton of NOX
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removed reflects this technology’s lower removal efficiency, 

which results in greater reagent consumption and escalates the 

cost of operating the SNCR relative to tons of NOX removed. 

Owners may favor this technology to meet certain NOX performance 

requirements for certain units. Because this EGU NOX reduction 

strategy is prospective and the EPA does not know the exact 

specifications of EGUs that may find this NOX reduction strategy 

feasible and cost-effective beyond 2017, the EPA performed a 

cost analysis using a representative electric generating unit. 

For a unit with a 40 percent capacity factor and using a NOX

emission reduction assumption of 25 percent, the cost is $6,500 

per ton of NOX removed. For more details on this assessment, 

refer to the EGU NOX Mitigation Strategies Final Rule TSD in the 

docket for this rule.

2. Non-EGU NOX Mitigation Strategies and Feasibility for the 2017 

Ozone Season

The EPA is not at this time addressing non-EGU emission 

reductions in its efforts to reduce interstate emission

transport for the 2017 ozone season with respect to the 2008 

ozone NAAQS. As compared to EGUs, there is greater uncertainty 

in the EPA’s current assessment of non-EGU point-source NOX

mitigation potential and the EPA believes more time is required 

for states and the EPA to improve non-EGU point source data and 
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pollution control assumptions before including related reduction 

potential in this regulation. Further, the 2017 ozone season 

implementation timeframe for this rulemaking would limit the 

number of non-EGU source categories that could potentially 

implement NOX emission reductions within that timeframe. Finally, 

using the best information available to the EPA, which was 

submitted for public comment with the proposed CSAPR Update, the 

EPA finds that there are more non-EGU point sources than EGU 

sources and that these sources on average emit less relative to 

EGUs. The implication of these fleet characteristics is that 

there are more individual sources to control and there are 

relatively fewer emission reductions available from each source. 

Considering these factors, the EPA finds substantial uncertainty 

regarding whether significant aggregate NOX mitigation is 

achievable from non-EGU point sources for the 2017 ozone season.

In assessing the potentially available 2017 ozone season NOX

emission reductions from non-EGU sources, the EPA identified 

potential controls, the reduction potential of each control, the 

associated cost of each control using a nationwide average, and 

the timing for the installation of control. The EPA then

evaluated the cost-effective controls that could be implemented 

by the 2017 ozone season. While there may be a few categories 

where cost-effective installation of non-EGU NOX controls on a 
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limited number of sources would be feasible by the 2017 ozone 

season, the EPA does not observe that significant, certain, and 

meaningful non-EGU NOX reduction is in fact feasible for the 2017 

ozone season. For example, one factor influencing uncertainty is 

that the EPA lacks sufficient information on the capacity and 

experience of suppliers and major engineering firms’ supply 

chains to conclude that they would be able to execute the 

project work for non-EGU sources in the limited timeframe of 

this rule. 

The EPA has evaluated the potential for ozone season NOX

reductions from non-EGU sources. A detailed discussion of this 

assessment was provided in the draft Non-EGU NOX Mitigation 

Potential TSD, which was located in the docket for the proposed 

rule and was available for comment. The EPA did not receive any 

comments that changed its conclusions in the draft Non-EGU NOX

Mitigation Potential TSD. As commenters generally agreed with 

the EPA’s assessment with respect to the regulation of non-EGUs 

in this rule, the TSD will be finalized with no substantive 

change from the proposal TSD. This TSD contains information 

shared at the proposal on non-EGU source category emissions, the 

EPA’s tools for estimating emission reductions from non-EGU 

categories, brief discussions of available controls, costs, 

potential emission reductions for specific source categories and 
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efforts, to date, to review and refine its estimates for certain 

states. There were no significant comments on the TSD, and the 

minor comments that were received will be addressed in the 

response to comments document. The EPA views this non-EGU 

assessment as a step toward future efforts to evaluate non-EGU 

categories that may be necessary to fully quantify upwind 

states’ significant contribution to nonattainment or 

interference with maintenance. 

Although the EPA is not analyzing non-EGU reductions for 

purposes of quantifying emission budgets in this final action, 

future EPA rulemakings or guidance could revisit the potential 

for reductions from non-EGU sources.

3. Summary of EGU Uniform Control Stringency Represented by 

Marginal Cost of Reduction (dollar per ton)

Table VI.B-1 lists the final EGU uniform NOX emission 

control stringencies, represented by marginal cost per ton of NOX

reduced, that the EPA evaluated and the NOX reduction strategy or 

policy that identified each uniform cost level.

Table VI.B-1: Levels of EGU Uniform NOX Emission Control 

Stringency and Representative Marginal Cost 

Levels of EGU 

Uniform Control 

Stringency

Representative EGU NOX Controls

$800 per ton Widespread availability of optimizing 

existing and operating SCRs
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$1,400 per ton Widespread availability of turning on 

idled existing SCRs and installing stateof-the-art combustion controls 

$3,400 per ton136 Widespread availability of turning on 

idled existing SNCRs 

$5,000 per ton Widespread availability of installing new 

SCRs137

$6,400 per ton Widespread availability of installing new 

SNCRs138

The EPA finds that $800 per ton is the lowest marginal cost 

at which any specific EGU pollution control technology (i.e., 

optimizing existing and operating SCRs) is available and 

feasible in the timeframe for implementing this rule. The EPA’s 

final analysis shows that no specific EGU NOX reduction 

technologies are available at a lower cost than $800 per ton. 

The implication of this finding is that evaluating $500 per ton, 

which was assessed at proposal, for the final rule would not 

yield any EGU NOX reduction potential attributable to specific 

pollution control technologies. As such, $800 per ton is the 

lowest uniform cost evaluated for the final CSAPR Update. 

 

136 The EPA notes that this cost is similar to the NOX SIP Call ozone season 

NOX cost threshold, adjusted to 2014$.

137 The cost assessment for new SCR is available in the EGU NOX

Mitigation Strategies Final Rule TSD. While chosen to define a costthreshold, new SCRs were not considered a feasible control on the compliance 

timeframe for this rule.

138 The cost assessment for new SNCR is available in the EGU NOX

Mitigation Strategies Final Rule TSD. While chosen to define a costthreshold, new SNCRs were not considered a feasible control on the compliance 

timeframe for this rule.
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In the CSAPR Update proposal, the EPA also evaluated 

$10,000 per ton as a uniform level of control stringency. The 

EPA identified this level of control stringency as an upper 

bound for the analysis conducted for the proposed rule. However, 

the proposal’s analysis showed that no specific EGU NOX reduction 

technologies were available at a higher cost than $6,400 per

ton. The EPA did not receive comment on the proposal indicating 

that there are additional EGU NOX reduction technologies 

available between $6,400 per ton and $10,000 per ton. As a 

result, the EPA did not evaluate $10,000 per ton as a uniform 

level of control stringency for the final CSAPR Update. 

The EPA finds that the selection of uniform cost thresholds 

presented in Table VI.B-1 is appropriate to evaluate potential 

EGU NOX reductions and corresponding emission budgets to address 

interstate emission transport for the 2008 ozone NAAQS. The EPA 

has identified cost thresholds where control technologies are 

widely available and therefore where the most significant 

incremental emission reduction potential is expected. The EPA 

did not evaluate additional cost thresholds in between those 

selected because this analysis would not yield meaningful 

insights as to NOX reduction potential as the EPA did not 

identify any control technologies that become available at such 

cost thresholds. Because these cost thresholds are linked to 
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costs at which EGU NOX mitigation strategies become widely 

available in each state, the cost thresholds represent the break 

points at which the most significant step-changes in EGU NOX

mitigation are expected. 

C. EGU NOX Reductions and Corresponding Emission Budgets

The EPA evaluated the EGU NOX reduction potential for each 

identified uniform level of NOX control stringency represented by 

marginal cost. This analysis applied the uniform control 

stringency to EGUs in each upwind state NOX using IPM version 

5.15. The EPA then used the modeled EGU NOX reduction potential 

in combination with monitored EGU data to quantify emission 

budgets for each uniform level of NOX control stringency. The 

next step of the process (described in the next subsection) 

evaluated air quality impacts of each set of emission budgets.

1. Evaluating EGU NOX Reduction Potential

The EPA evaluates emission reductions from all EGU NOX

mitigation strategies available at each level of uniform NOX

control stringency. However, two components of this assessment 

are key to the level of reductions available and/or received 

significant comment at proposal. These components are the 

achievable NOX rate for units with SCR and shifting generation to 

lower NOX-emitting or zero-emitting EGUs.
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One key input to the EPA’s analysis of EGU NOX reduction 

potential is the NOX emission rate that can be achieved for EGUs 

with SCRs that are not optimized or are idled. This input 

influences the EPA’s estimate of EGU NOX reduction potential and 

corresponding NOX ozone season emission budgets. To estimate EGU 

NOX reduction potential from optimizing or turning-on idled SCRs, 

the EPA considers the delta between the non-optimized or idled 

NOX emission rates and an achievable operating and optimized SCR 

NOX emission rate. Assuming a higher achievable EGU NOX emission 

rate for SCRs yields a higher emission budget and assuming a 

lower achievable EGU NOX emission rate for SCRs yields a lower 

emission budget. For the final rule analysis, the EPA finds that 

an achievable 2017 EGU NOX ozone season emission rate for units 

with SCR is 0.10 lbs/mmBtu. To determine this rate, the EPA 

evaluated coal-fired EGU NOX ozone season emission data from 2009 

through 2015 and calculated an average NOX ozone season emission 

rate across the fleet of coal-fired EGUs with SCR for each of 

these seven years. The EPA finds it prudent to not consider the 

lowest or second lowest ozone season NOX rates, which may reflect 

new SCR systems that have all new components (e.g., new layers 

of catalyst). Data from these new systems are not representative

of ongoing achievable NOX rates considering broken-in components 

and routine maintenance schedules. The EPA believes that the 
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third lowest fleet-wide average coal-fired EGU NOX rate for EGUs 

with SCR is representative of ongoing achievable emission rates.

The EPA observes that the third lowest fleet-wide average coalfired EGU NOX rate for EGUs with SCR is 0.10 lbs/mmBtu. The EPA 

has implemented 0.10 lbs/mmBtu as an EGU NOX rate ceiling in IPM. 

For more information about how this rate is implemented in IPM,

see the EPA’s IPM documentation, which can be found in the 

docket for this rulemaking or at

www.epa.gov/powersectormodeling.

The EPA’s analysis of SCR NOX rates for the final rule 

differs from the proposal in two ways. First, the evaluation 

focuses on a more recent timeframe for analysis -- 2009 through 

2015 compared to 2003 through 2014. The EPA believes this change 

is reasonable because there have been significant shifts in the 

power sector since 2003, particularly with respect to power 

sector economics (e.g., lower natural gas prices in response to 

shale gas development) and environmental regulations (e.g., CAIR 

and CSAPR). Because of these changes, the EPA considers it 

reasonable to evaluate SCR performance focusing on more recent 

historical data that better represent the current landscape of 

considerations affecting the power sector. The EPA chose 2009 

because that is the first year of CAIR NOX annual compliance. 

Second, the analysis focuses on the third best ozone season 
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average rate as compared to the second best rate at proposal. 

The EPA believes that the second best rate, as discussed

previously, could continue to capture disproportionately new SCR 

components and does not necessarily reflect achievable ongoing 

NOX emission rates. Therefore, the EPA is finalizing analysis 

using the third best rate. 

The proposed CSAPR Update put forward 0.075 lbs/mmBtu as a 

widely achievable EGU NOX ozone season emission rate for coalfired EGUs with SCR. As noted in the previous paragraph, the EPA 

has reassessed this assumption, partly in response to comment 

received on the proposal. Some of the key comments are 

summarized later and additional detail can be found in the

Assessment of Non-EGU NOX Emission Controls, Cost of Controls, 

and Time for Compliance Final TSD and the Response to Comments 

Document. 

Comment: Some commenters suggested that the EPA’s proposed 

coal-fired EGU NOX ozone season emission rate of 0.075 lbs/mmBtu 

for units with SCR was too low and did not represent an 

achievable NOX rate for the 2017 ozone season. These commenters 

provided several examples of changes in power sector economics 

that have significantly changed EGU dispatch in recent years and 

also changes in compliance planning for environmental 
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regulations. These commenters suggested that the EPA should 

consider a shorter time-frame for evaluating SCR operation. 

Response: The EPA acknowledges that various factors, both 

economic and regulatory, have influenced the power sector in 

recent years. The EPA believes that the achievable SCR NOX rate 

and underlying assumptions that it is finalizing in this action 

are generally responsive to these comments. As discussed 

previously, for the purposes of evaluating EGU NOX reduction 

potential, the EPA uses an EGU NOX emission rate for units with 

SCR of 0.10 lbs/mmBtu as a ceiling in the IPM model. This rate 

reflects a generally achievable NOX emission rate that is 

appropriate for the EPA’s budget-setting purposes. The use of 

this rate to establish emission budgets was supported in 

comments by many power sector companies and their representative 

groups.

Comment: Other commenters noted that many coal-fired EGUs 

with SCR have demonstrated the ability to achieve NOX emission 

rates of 0.06 lbs/mmBtu or lower. These commenters suggested 

that the EPA should use SCR NOX ozone season emission rates that 

are lower than 0.075 lbs/mmBtu in quantifying emission budgets.

Response: The EPA acknowledges that many individual coalfired EGUs with SCR have achieved rates lower than 0.075 

lbs/mmBtu. However, in evaluating a regional environmental 
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challenge (i.e., interstate transport of ozone pollution) and 

designing an analysis of EGU NOX reduction potential in the many 

states in that region, the EPA believes it is prudent to 

consider a range of demonstrated NOX emission rates and believes 

that an ozone season average is a more reasonable approach for

identifying NOX reduction potential using a uniform standard.

Another key input to the EPA’s analysis of EGU NOX reduction 

potential is shifting generation to existing, lower NOX-emitting 

or zero-emitting EGUs within the same state. Shifting generation 

to existing lower NOX-emitting or zero-emitting EGUs within the 

same state would be a readily available approach for EGUs to 

reduce NOX emissions, and the EPA included this NOX mitigation 

strategy in quantifying EGU NOX reduction potential in the 

analyses informing this rule.

Regarding feasibility of shifting generation to existing 

lower-NOX emitting or zero-emitting units within the same state 

for the 2017 ozone season, the EPA finds that this EGU NOX

reduction strategy is consistent with demonstrated EGU dispatch 

behavior. Power generators produce a relatively fungible 

product, electricity, and they operate within an interconnected 

electricity grid in which electricity generally cannot be stored 

in large volumes, so generation and use must be balanced in real 

time. See FERC v. Elec. Power Supply Ass’n, 136 S. Ct. 760, 768 
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(2016). Because of their uniquely interconnected and 

interdependent operations -– so much so that the utility sector 

has been likened to a “complex machine”139 -- power plants shift 

generation in the normal course of business. Every time a power 

plant either increases or decreases operations, that has 

implications for the overall amount of pollution emitted by 

other plants within the interconnected electricity grid, because 

those other plants must commensurately decrease or increase 

their operations to balance supply with demand. As a result, by 

shifting some generation from higher-emitting to lower-emitting 

plants, sources can achieve an effective degree of emission 

limitation that might otherwise have required them to make much 

more expensive investments in end-of-stack technologies at their 

particular plants. As a result, sources would likely use 

shifting generation measures to comply with standards whenever 

doing so is less expensive than end-of-stack controls, even if 

EPA considered only end-of-stack controls in determining those 

standards. Further, the flexibility that power plants have to 

shift generation in establishing dispatch patterns is 

 

139 Phillip F. Schewe, The Grid: A Journey Through the Heart of 

Our Electrified World 1 (2007). The integrated nature of the 

utility power sector is well-recognized. See, e.g., CAA section 

404(f)(2)(B)(iii)(I); New York v. Federal Energy Regulatory 

Commission, 535 U.S. 1, at 7 (2002). 
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synergistic with the flexibility afforded by implementation 

through an allowance trading program, as the EPA is finalizing 

in this CSAPR Update. Allowance prices can be seamlessly 

factored into dispatch decisions, which provides for an 

efficient approach to administering shifting generation for 

compliance with the CSAPR Update requirements, if EGUs so 

choose. For these reasons, it is therefore reasonable for the 

EPA to consider that sources may cost-effectively address their 

emissions through arrangements that incorporate cleaner forms of 

power generation. 

For establishing emission budgets for the CSAPR Update, the 

EPA finds that shifting specified, small amounts of generation 

to existing lower NOX-emitting or zero-emitting units could occur 

consistent with the near-term 2017 implementation timing for 

this rule.140 As a proxy for limiting the amount of generation 

shifting that is feasible for the 2017 ozone season, the EPA 

limited its assessment to shifting generation to other EGUs 

within the same state. The EPA believes that limiting its 

evaluation of shifting generation (which we sometimes refer to 

as re-dispatch) to the amount that could occur within the state 

transfer represents a conservatively small amount of generation-

 

140 The EGU NOX Mitigation Strategies Final Rule TSD provides data indicating 

the extent to which electricity generation shifted from one ozone season to 

another in recent years.
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shifting because it does not capture further potential emission 

reductions that would occur if generation was shifted more 

broadly among units in different states within the 

interconnected electricity grid, which the EPA believes is 

feasible over time. However, this broader, interstate 

generation-shifting may involve greater complexity – due to, for 

example, the greater amount of demand, larger number of sources, 

and greater amount of infrastructure involved -- and therefore 

may be more challenging to implement in the near term. Limiting 

our consideration of such generation-shifting potential to a 

small percentage of total generation-shifting potential is 

consistent with the limited amount of time that states and 

sources have to achieve the required reductions. EPA relied on 

the in-state limitation as a reasonable indication of the amount 

of EGU NOX reduction potential from shifting generation to 

existing lower NOX-emitting or zero-emitting units that states 

and sources can readily implement by the 2017 summer ozone 

season. Of course, sources are not limited to generationshifting within state, and instead are free to shift generation 

across state lines to comply with the CSAPR Update requirements.

Regarding the cost of the amount of generation-shifting 

that would result from shifting generation to existing lower-NOX

emitting or zero-emitting units within the same state, the EPA 
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finds that this NOX reduction strategy occurs on a cost continuum 

rather than at a discrete marginal cost per ton of NOX. In 

tracking power sector development over time, the EPA observes 

that shifting generation to existing lower-NOX emitting or zeroemitting EGUs occurs in response to economic factors such as 

fuel costs. Similar to this response to economic factors, the 

EGU NOX reduction potential analysis conducted for the CSAPR 

Update rule shows shifting generation occurring on a continuum 

in response to environmental policy, represented by marginal 

cost of NOX reductions. In other words, unlike the retrofit 

pollution control technologies that are evaluated in this CSAPR 

Update, there is no discrete cost at which this EGU NOX

mitigation strategy is singularly widely available. Rather, 

relatively lower marginal NOX costs incentivize some EGU NOX

reductions from shifting generation, while relatively higher 

marginal NOX costs incentivize more EGU NOX reductions from 

shifting generation. The EPA quantified NOX reduction potential 

from this EGU NOX reduction strategy at each uniform NOX control 

stringency level analyzed. As described in the EGU NOX Mitigation 

Strategies Final Rule TSD, the amount of generation shifting 

seen in the CSAPR Update is modest in comparison to ozone 

season-to-ozone season generation shifting seen in recent years.
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Comment: Commenters raised concerns regarding the EPA’s 

authority pursuant to CAA section 110(a)(2)(D)(i)(I) to analyze 

generation shifting as a NOX reduction strategy for purposes of 

calculating budgets for the final rule. The commenters cite the 

statutory language requiring states to prohibit “any source . . 

. from emitting” pollutants that contribute to downwind 

nonattainment and maintenance as constraining the EPA’s 

authority to require reductions only from existing sources. The 

commenters claim that this language prohibits the EPA’s 

authority to require sources to re-dispatch to new or 

alternative existing emission sources as this does not 

constitute a control on a “source.” Commenters add that the 

proposed budgets make it impossible for states to comply without 

taking this measure. Some commenters claim that, while the EPA 

may not set budgets assuming generation shifting, re-dispatch 

can serve as a compliance option for EGUs to meet budgets 

quantified in this rule.

Some commenters cite to the EPA’s reliance on generation 

shifting in developing the best system of emissions reductions 

(BSER) pursuant to CAA section 111(d) in the CPP. These 

commenters claim that the EPA cannot rely on the same 

justification used to consider generation shifting in the CPP

because, unlike CO2, NOX is not a global, well-mixed pollutant 
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with limited control options. These commenters also note that 

the EPA’s assertion that section 111(d) permits consideration of 

generation shifting is subject to current litigation.

Response: The good neighbor provision requires state and 

federal plans implementing its requirements to “prohibit[] . . . 

any source or other type of emissions activity within the State

from emitting any air pollutant in amounts which will” 

significantly contribute to nonattainment or interfere with 

maintenance of the NAAQS in any other state. CAA section 

110(a)(2)(D)(i)(I) (emphasis added). The EPA’s consideration of 

the potential for generation shifting in developing state 

budgets is consistent with this statutory requirement.

First, contrary to the commenters’ contention, the statute 

does not limit the EPA’s authority under the good neighbor 

provision to basing regulation only to control strategies for 

individual sources. The statute authorizes the state or EPA in 

promulgating a plan to prohibit emissions from “any source or 

other type of emissions activity within the State” that 

contributes (as determined by EPA) to the interstate transport 

problem with respect to a particular NAAQS. This broad statutory 

language shows that Congress was directing the states and the 

EPA to address a wide range of entities and activities that may 

be responsible for downwind emissions. However, this provision 
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is silent as to the type of emission reduction measures that the 

states and the EPA may consider in establishing emission 

reduction requirements, and it does not limit those measures to 

individual source controls. The EPA reasonably interprets this 

provision to authorize consideration of a wide range of measures 

to reduce emissions from sources, which is consistent with the 

broad scope of this provision, as noted immediately above.141 In 

the case of power plants, those measures can include on-site 

technology-based control measures, but they can also include 

measures through which power plants reduce emissions by shifting 

generation from higher-emitting EGUs to lower-emitting EGUs. It 

should be noted that because of the integrated nature of the 

power sector, higher-emitting EGUs have a variety of methods for 

implementing generation-shifting.142 In addition, states can take 

 

141 Interpreting the Good Neighbor Provision to be sufficiently 

broad to authorize reliance on generation shifting is also 

consistent with the legislative history for the 1970 CAA 

Amendments. The Senate Report stated that to achieve the NAAQS, 

“[g]reater use of natural gas for electric power generation may 

be required,” S. Rep. No. 91-1196 at 2, which can best be 

achieved by shifting generation from coal-fired to natural-gasfired generators. 

142 See Legal Memorandum Accompanying Clean Power Plan for 

Certain Issues,” 137-48, EPA-HQ-OAR-2013-0602-36872; West 

Virginia v. EPA, D.C. Cir. No. 15-1363, Brief of Amici Curia 

Grid Experts Benjamin F. Hobbs, Brendan Kirby, Kenneth J. Lutz, 

James D. McCalley, and Brian Parsons in Support of Respondents,”

at 1-4, 12-14.
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action, such as imposing permit limits, that would result in 

generation shifting.

Moreover, the statute instructs the plan to prohibit 

emissions activity in “amounts” that significantly contribute to 

nonattainment or interfere with maintenance of downwind air 

quality. In identifying those amounts, the EPA has not mandated 

generation shifting, but rather has factored each state’s 

capacity for re-dispatch into the calculation of the amounts of 

emission reductions that are achievable to address downwind air 

quality. The emission reductions are captured in state budgets, 

which are then implemented through the flexible CSAPR NOX ozone 

season allowance trading program that allows each source to 

determine its own strategy for compliance, whether that be 

through implementation of on-site controls, re-dispatch, or the 

purchase of allowances. Indeed, no state would violate the 

provisions of the rule if sources within the state decided not 

to employ re-dispatch as a means of compliance. As discussed in 

Section VII, the EPA performed a feasibility analysis which 

demonstrates that regionally and for each CSAPR Update state, 

the trading program requirements promulgated by this rule can be 

met through cost-effective measures, even without re-dispatch. 

Further, we note that while commenters urged EPA to allow 

sources to use generation shifting as a means of compliance with 
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statewide emissions budgets, they do not explain why they 

believe that re-dispatch may be used by sources for compliance 

but that the EPA may not consider this anticipated and widelyused means of reducing emissions when quantifying the amount of 

reductions achievable from sources within the state. In fact, 

because these comments acknowledge that sources are able to 

implement generation-shifting for the purpose of reducing 

emissions, they support EPA’s reliance on generation-shifting to 

quantify the amount of reductions required under the good 

neighbor provision. Moreover, these comments support the view 

that even if the EPA did not base the amount of required 

emission reductions on generation-shifting, sources would rely 

on generation-shifting to meet their requirements as long as it 

is less expensive than other emission controls.

Although the commenters contend that the consideration of 

shifting generation as a source of emission reductions is 

unprecedented, shifting generation is a well-established 

technique for reducing power plant emissions, which has already 

been incorporated into many other CAA programs. For example,

when promulgating the original CSAPR rulemaking, the EPA 

considered shifting generation when establishing state budgets 
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in the same manner in which the EPA has incorporated generation 

shifting into the analysis for this rule.143

Finally, the commenters have not identified a clear 

conflict with the EPA’s justification for considering generation 

shifting in the context of the CPP. The CPP was designed 

pursuant to the authority in CAA section 111(d), while the CSAPR 

Update is promulgated consistent with the requirements of the 

good neighbor provision at CAA section 110(a)(2)(D)(i)(I). As 

 

143 See 76 Fed. Reg. at 48280 (EPA’s selection of a $500 

threshold “reflect[ed] an amount of ... generation shifting that 

can be achieved for $500/ton”). For other CAA programs and rules 

that are based at least in part on generation-shifting, see S. 

Rep. No. 101-228, at 316 (1989) (Congress designed the Title IV 

acid rain provisions in the 1990 CAA Amendments in part on the 

ability of power plants to re-dispatch); 77 Fed. Reg. 9304, 9410 

(Feb. 16, 2012) (in Mercury Air Toxics Rule, EPA authorized 

compliance extensions so that power plants could comply by 

generation-shifting); 70 Fed. Reg. 28,606, 28,619 (May 18, 2005) 

(in Clean Air Mercury Rule, EPA based emission requirements in 

part on the ability of power plants to generation shift); 70 

Fed. Reg. 25162, 25256-57, 25277 (May 12, 2005) (several of 

CAIR’s provisions were based on the ability of power plants to 

re-dispatch); 63 Fed. Reg. 57356, 57401 (Oct. 27, 1998) (NOx SIP 

Call included “changes in dispatch” among the highly costeffective controls that served as the basis for the required 

amount of reductions). In addition, several states have already 

adopted renewable energy measures in their SIPs for attaining 

and maintaining the NAAQS, and the EPA has provided initial 

guidance for states to do so. See, e.g., Guidance on SIP Credits 

for Emission Reductions from Electric-Sector Energy Efficiency 

and Renewable Energy Measures (Aug. 2004), 

http://www.epa.gov/ttn/oarpg/t1/memoranda/ereseerem_gd.pdf. For

example, in 2005, EPA approved inclusion of county government 

commitments to purchase 5 percent of their annual electricity 

consumption from wind power in Maryland’s SIP. 70 Fed. Reg. 

24,988 (May 12, 2005). 
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explained earlier, the good neighbor provision is permissibly 

interpreted to allow the EPA to consider generation shifting 

when defining the “amounts” of emission reductions that may be 

required to address each states’ significant contribution to 

nonattainment and interference with maintenance of downwind air 

quality. Thus, while EPA is confident that its interpretation of 

section 111(d) to authorize generation-shifting will be upheld, 

the fact that litigants have challenged the EPA’s authority 

pursuant to section 111(d) does not affect the EPA’s authority 

pursuant to the good neighbor provision. 

Moreover, the fact that there are factual differences 

between the nature of CO2 and NOX as air pollutants, does not 

constrain the EPA’s authority to consider shifting generation 

when regulating NOX emissions pursuant to the good neighbor 

provision. Rather, as described earlier, both rules regulate 

sources in the power sector that commonly engage in generation 

shifting as a means of achieving emission reductions of either 

CO2 or NOX. It is thus reasonable for the EPA to consider such 

practices in quantifying achievable emission reductions to 

address downwind air quality concerns. Furthermore, the 

rulemakings appropriately reflect the factual differences to the 

extent they are relevant (e.g., this rule includes assurance 

provisions constraining emissions in each state and CPP does 
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not, which reflects the regional nature of NOX and the global 

nature of CO2).

Comment: Commenters contend that the EPA cannot consider 

generation shifting for purposes of developing state emission 

budgets because the Federal Energy Regulatory Commission (FERC) 

has exclusive authority over dispatch requirements under the 

Federal Power Act. These commenters claim that scheduling and 

dispatch are controlled by regional transmission organizations 

and independent system operators, pursuant to FERC approval. 

Additionally, the commenters note that EGUs already may have 

committed their capacity under long term power purchase 

agreements (PPAs), which the EPA lacks the authority to alter or 

abrogate. Other commenters contend that the EPA must at least 

confer with FERC to confirm that the generation shifting 

required by this rule do not impact grid reliability.

Response: The CSAPR Update is an air-pollution rule 

specifically authorized by the CAA. As discussed in response to 

the previous comment, shifting generation is a well-established 

technique for reducing power plant emissions, which has already 

been incorporated into many other CAA programs. This rule limits 

EGU NOX emissions that interfere with downwind states’ ability to 

attain and maintain the 2008 ozone NAAQS. The rule does not 

regulate any other aspect of energy generation, distribution, or 
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sale. For these reasons, the CSAPR Update does not intrude on 

FERC’s power under the Federal Power Act, 16 U.S.C. §§ 791a, et 

seq., nor does the rule alter or abrogate the PPAs to which EGUs 

are subject. Like any pollution limits for the power industry 

(of which there are many under the CAA), the CSAPR Update will 

indirectly impact energy markets, but those impacts do not mean 

that the EPA has overstepped its authority. 

The CSAPR Update does not require implementation of any 

specific control technology or compliance strategy. As described 

in section VII, the emission reductions quantified in this rule 

are implemented through EGU participation in a flexible 

allowance trading program. Sources may achieve these emission 

reductions in any manner they choose, including the purchasing 

of additional allowances if a particular source is constrained 

to reduce its emissions. Although sources have demonstrated 

ability to use re-dispatch as a compliance strategy (and indeed, 

some commenters concede they intend to do so here), such actions 

are not mandated by this rule. As discussed in Section VII, the 

EPA performed a feasibility analysis which demonstrates that 

regionally and for each CSAPR Update state, the trading program 

requirements promulgated by this rule can be met, even without 

re-dispatch.
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Moreover, the EPA has evaluated the impact on electric 

reliability of the emission reductions required by this rule and 

found that compliance with the CSAPR Update requirements is 

consistent with maintaining electric reliability. For more

information regarding this assessment, see the EGU NOX Mitigation 

Strategies Final Rule TSD in the docket for this rule. The EPA 

also met with FERC during the development of the CSAPR Update to 

discuss compliance with the entirety of the rule, not only in

relation to shifting generation. This meeting is documented in 

the docket for the CSAPR Update.

2. Quantifying Emission Budgets

In the proposed CSAPR Update, the EPA proposed setting 

emission budgets by considering monitored heat input (mmBtu) and 

modeled emission rates (lbs/mmBtu) from IPM. Specifically, the 

proposed CSAPR Update put forward a methodology to set emission 

budgets by multiplying monitored historical state-level heat 

input by model-projected 2017 state-level emission rates. The 

monitored historical data were based on 2014, which was the most 

recent complete ozone season dataset at the time of the 

proposal. The model-projected state-level emission rates were 

used to reflect EGU NOX reduction potential. The proposed 

emission budgets were the lower of the calculated emission 

budget or the 2014 historical state-level emissions. The EPA 
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took comment on all aspects of quantifying state emission 

budgets reflecting upwind EGU NOX reduction potential.

The proposed CSAPR Update budget-setting approach differed 

from the finalized methodology in the original CSAPR, which used 

model-projected state-level emission data as emission budgets. 

The EPA received feedback on the finalized original CSAPR 

budget-setting approach through model input data submitted after 

the final rule that led to two revisions rules144 and in 

litigation on the original CSAPR. Considering this feedback, the 

EPA believed that it was reasonable to update the budget-setting 

methodology for the proposed CSAPR Update. The proposed approach 

is similar to the proposed approach used to quantify emission 

budgets for the original CSAPR.145

The final rule methodology for setting emission budgets 

reflects the CSAPR Update proposal in that it retains the 

approach of multiplying historical state-level heat input by 

state-level emission rates that reflect EGU NOX reduction 

potential. For the final CSAPR Update rule, the EPA is refining 

its methodology for establishing emission budgets that reflect

EGU NOX reduction potential by using historical state-level NOX

 

144 77 FR 34830, June 12, 2012 and 77 FR 10324, February 21, 2012.

145 The original CSAPR proposal set proposed emission budgets by using an 

approach that considered monitored state-level heat input and modeled statelevel emission rates. (75 FR 45291)
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emission rates146 adjusted by modeled NOX reduction potential. 

Specifically, the final rule’s approach applies the change in 

modeled 2017 state-level emission rates (the budget-setting base 

case 2017 projected rates minus the cost threshold modeling 2017 

projected rates) to historical 2015 state-level NOX emission 

rates,147 such that the emission budgets assume the potential of 

each state to improve its historical NOX rate by the same degree 

that it is projected to improve its NOX rate when moving between 

the budget-setting base case 2017 projection and cost threshold 

projection.

This approach uses the EPA’s IPM EGU NOX reduction potential 

modeling in a relative sense by applying the projected 2017 

change in state-level EGU NOX emission rates to 2015 historical

data. This approach is similar to the EPA’s method for 

projecting ambient air quality concentrations described in 

section V. The EPA is finalizing this refinement to the proposed 

approach in response to comment received on the proposal. The 

primary improvement of this approach relevant to comment 

received is that it circumvents quantifying in emission budgets 

 

146 The EPA notes that historical state-level ozone season EGU NOX emission 

rates are publicly available and quality assured data. They are monitored 

using continuous emissions monitors (CEMs) data and are reported to the EPA 

directly by power sector sources.

147 The EPA used 2014 historical data at proposal because that was the latest 

available at that time. Since then, 2015 historical data is available and the 

EPA is using 2015 data in the final rule because it best reflects the current 

state of the power sector.
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any modeled EGU NOX reduction potential (e.g., modeled 

retirements) that occurs in the budget-setting base case 

projection.

However, this approach also circumvents quantifying in 

emission budgets any known EGU NOX reduction activities (e.g., 

announced new SCR at existing EGUs, announced coal-to-gas 

conversions, or announced retirements) occurring between the 

historical 2015 data and the modeled projection 2017 data. 

To account for known changes in the final rule budgetsetting methodology, the EPA developed an adjusted historical

dataset. This adjusted historical data starts with 2015 statelevel monitored and reported EGU NOX emissions and heat input. 

The dataset is then adjusted for three categories of known 

changes in the power sector occurring between 2015 and 2017: 

announced new SCR at existing EGUs; announced coal-to-gas 

conversions; and announced retirements. These important 

adjustments ensure that the emission budgets established by this 

rule reflect EGU NOX reductions both from already announced power 

sector changes and further EGU NOX reductions quantified in the 

EPA’s EGU NOX reduction potential analysis. Accounting for known 

EGU NOX reduction activities in establishing emission budgets 

ensures that the emission budgets reflect the best available 

information in terms of achievable EGU NOX reductions and 
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remaining emission levels. To account for announced new SCR at 

existing EGUs, the EPA adjusts the 2015 emissions at the 

relevant units as though the new SCR had been operating at that 

time (assuming no change in heat input148 at those units). 

Similarly, to account for announced coal-to-gas conversions, the 

EPA adjusts the 2015 emissions at the relevant units as though 

the conversion had already taken place (assuming no change in 

heat input at those units). To account for announced 

retirements, the EPA subtracts the 2015 emissions from these 

units and replaces them by adding assumed emissions for an 

equivalent amount of generation using state-wide average 

emission rates after accounting for the retirement. Preserving 

some emissions associated with the generation from retired 

units, assuming that generation will be replaced by other EGUs 

in the state, ensures that the budget-setting approach accounts 

for known retirements but estimates the emission impact using 

generation replacement assumptions with conservatively high NOX

emission rates. In other words, the EPA assumes that the retired 

generation is replaced by the average remaining EGU composition 

within the state rather than by newer lower-emitting generation. 

 

148 In this analysis the EPA used heat input as a proxy for electricity 

generation.
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Comment: Commenters supported the EPA’s consideration of 

historical monitored data to quantify emission budgets and 

advocated that the EPA further utilize historical data in its 

budget-setting methodology. For example, some commenters 

proposed an alternative budget-setting methodology that was 

grounded entirely in historical data, with NOX control 

assumptions applied. Commenters also suggested that the budgetsetting base case projection emission rates were unduly 

influenced by model-projected changes for the 2017 analysis year 

and that this created emission budgets that did not reflect 

achievable NOX emission levels. 

Response: In response to these comments, the agency 

considered approaches to isolate model-projected changes in the 

power sector occurring in the budget-setting base case 

projection and model-projected changes that result from the 

application of uniform cost threshold analysis. As discussed 

previously, for the final rule, the EPA is refining its method 

for calculating emission budgets in response to these comments. 

In doing so, the EPA is also finalizing a budget-setting 

methodology that further relies on historical data, which is 

further aligned with comment received on the proposal.

The approach for applying this budget-setting methodology 

to the EPA’s EGU NOX reduction potential analysis uses a three 
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step process, applied to each control stringency level. First, 

the EPA uses the state-level modeled EGU NOX emission rate from 

the 2017 budget-setting base case projection and subtracts the 

state-level modeled EGU NOX emission rate from the 2017 cost 

threshold projection (e.g., $1,400 per ton).149 This yields the 

EPA’s assessment of policy-related EGU NOX reduction potential in 

the form of a reduction in state-level NOX emission rate. Second, 

the EPA subtracts this modeled change in state-level NOX emission 

rate from the adjusted historical state-level EGU NOX emission 

rate. This yields a cleaner state-level EGU NOX emission rate 

that is grounded in historical data and reflects policy-related 

EGU NOX reduction potential. Third, the EPA multiplies the 

resulting EGU NOX emission rate by 2015 historical heat input. 

This multiplication yields state-specific ozone season EGU NOX

emission budgets for 2017 that are grounded in historical data 

and reflect EGU NOX reduction potential modeled in IPM. Similar 

to the proposal, the final CSAPR Update establishes emission 

budgets as the lower of the calculated emission budget or the 

2015 historical (unadjusted) state-level emissions. 

In conducting the IPM modeling of each cost threshold, the 

EPA limited IPM’s evaluation of NOX mitigation strategies to 

 

149 Each state-level emission rate is calculated as the total emissions from 

affected sources within the state divided by the total heat input from these 

sources.
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those that can be implemented for the 2017 ozone season, which 

is the compliance timeframe for this rulemaking. The agency 

analyzed levels of uniform EGU NOX control using IPM, where each 

level is represented by marginal NOX costs listed in Table VI.C-1 

in this preamble. The analysis applied these uniform levels of 

control to EGUs in the 48 contiguous United States and the 

District of Columbia, starting with 2017. The analysis included 

EGUs with a capacity (electrical output) greater than 25 MW, 

which reflects the CSAPR Update rule applicability criteria. The 

Ozone Transport Policy Analysis Final Rule TSD, which is in the 

docket for this rule, provides further details of the EPA’s 

analysis of ozone season NOX emission reductions occurring at 

each level of uniform control stringency for the 2017 ozone 

season.

As described in in Section V, air quality data for the 

CSAPR Update indicates that the District of Columbia contributes 

at or above the 1 percent threshold to a downwind maintenance 

receptor in Harford County, Maryland. Moreover, in Step 3 of the 

CSAPR framework, the EPA’s analysis finds that there are no EGUs 

in the District of Columbia that meet the CSAPR Update 

applicability criteria (i.e., EGUs with a capacity greater than 

25 MW). Therefore, the EPA does not calculate or finalize an EGU 

NOX ozone season emission budget for the District.
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The 2015 historical data, adjusted historical data, and EGU 

NOX ozone season emission budgets calculated using each cost 

threshold identified in the final emission budget-setting

approach can be found in Tables VI.C-1 and VI.C.2.

Table VI.C-1. Evaluated EGU NOX Ozone Season Emission Budgets, 

Reflecting EGU NOX Reductions (Ozone Season NOX Tons)

State

2015

Emissions

Adjusted 

Historical

Emissions

$800 per

ton 

Emission 

Budgets

$1,400 

per ton 

Emission 

Budgets

$3,400 

per ton 

Emission 

Budgets

Alabama 20,369 15,179 14,332 13,211 12,620

Arkansas 12,560 12,560 12,048 9,210 9,048 

Illinois 15,976 14,850 14,682 14,601 14,515

Indiana 36,353 31,382 28,960 23,303 21,634 

Iowa 12,178 11,478 11,477 11,272 11,065

Kansas 8,136 8,031 8,030 8,027 7,975 

Kentucky 27,731 26,318 24,052 21,115 21,007

Louisiana 19,257 19,101 19,096 18,639 18,452 

Maryland 3,900 3,871 3,870 3,828 3,308

Michigan 21,530 19,811 19,558 17,023 15,782

Mississippi 6,438 6,438 6,438 6,315 6,243 

Missouri 18,855 18,443 17,250 15,780 15,299 

New Jersey 2,114 2,114 2,100 2,062 2,008

New York 5,593 5,531 5,220 5,135 5,006 

Ohio 27,382 27,382 23,659 19,522 19,165 

Oklahoma 13,922 13,747 13,746 11,641 9,174

Pennsylvania 36,033 35,607 20,014 17,952 17,928

Tennessee 9,201 7,779 7,736 7,736 7,735

Texas 55,409 54,839 54,521 52,301 50,011

Virginia 9,651 9,367 9,365 9,223 8,754 

West Virginia 26,937 26,874 25,984 17,815 17,380 

Wisconsin 9,072 7,939 7,924 7,915 7,790 

22 State 

Region 398,596 378,641 350,062 313,626 301,899
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Table VI.C-2. Evaluated EGU NOX Ozone Season Emission Budgets, 

Reflecting EGU NOX Reductions (Ozone Season NOX Tons)

State

2015 

Emissions

Adjusted 

Historical

Emissions

$5,000 

per ton 

Emission 

Budgets

$6,400 

per ton 

Emission 

Budgets

Alabama 20,369 15,179 11,928 11,573

Arkansas 12,560 12,560 8,518 8,050

Illinois 15,976 14,850 14,248 14,054

Indiana 36,353 31,382 19,990 18,720

Iowa 12,178 11,478 10,891 10,491

Kansas 8,136 8,031 7,962 7,767

Kentucky 27,731 26,318 20,273 19,496

Louisiana 19,257 19,101 18,442 18,426

Maryland 3,900 3,871 2,938 2,926

Michigan 21,530 19,811 13,110 12,612

Mississippi 6,438 6,438 6,203 6,205

Missouri 18,855 18,443 14,673 14,555 

New Jersey 2,114 2,114 1,867 1,879

New York 5,593 5,531 4,746 4,594

Ohio 27,382 27,382 18,561 18,348

Oklahoma 13,922 13,747 8,790 8,439

Pennsylvania 36,033 35,607 17,621 17,374

Tennessee 9,201 7,779 7,724 7,729

Texas 55,409 54,839 48,795 47,994

Virginia 9,651 9,367 8,619 8,416

West Virginia 26,937 26,874 17,388 17,373

Wisconsin 9,072 7,939 7,435 7,023

22 State 

Region 398,596 378,641 290,722 284,044

D. Multi-factor Test Considering Costs, EGU NOX Reductions, and 

Downwind Air Quality Impacts

Next, the EPA applied the multi-factor test to consider

cost, available emission reductions, and downwind air quality 
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impacts to determine the appropriate level of uniform NOX control 

stringency, feasible for 2017, that addresses the impacts of 

interstate transport on downwind nonattainment or maintenance 

receptors. This test evaluates these factors to determine the 

appropriate stopping point for quantifying upwind state 

obligations to address interstate ozone transport, including 

whether the identified downwind ozone problems (i.e., 

nonattainment or maintenance problems) are resolved.

Figure VI.1. EGU Ozone Season NOX Reduction Potential in 22

Linked States and Corresponding Total Reduction in Downwind 

Ozone Concentrations at Nonattainment and Maintenance Receptors 

for each Emission Budget Level Evaluated 

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

 $- $1,500 $3,000 $4,500 $6,000

EGU Ozone Season NOX Reduction 

Potential (tons)

Average Ozone Improvement at 

Nonattainment and Maintenance 

Receptors (ppb)

Ozone Improvement EGU NOx Reduction Potential
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Combining costs, EGU NOX reductions, and corresponding 

improvements in downwind ozone concentrations results in a “knee 

in the curve” at a point where emission budgets reflect a 

control stringency with an estimated marginal cost of $1,400 per

ton. This level of stringency in emission budgets represents the 

level at which incremental EGU NOX reduction potential and 

corresponding downwind ozone air quality improvements are 

maximized with respect to marginal cost. That is, the ratio of 

emission reductions to marginal cost and the ratio of ozone 

improvements to marginal cost are maximized relative to the 

other emission budget levels evaluated. Further, more stringent 

emission budget levels (e.g., emission budgets reflecting $3,400 

per ton or greater) yield fewer additional emission reductions

and fewer air quality improvements relative to the increase in 

control costs. This evaluation shows that significant EGU NOX

reductions are available at reasonable cost and that these 

reductions can provide improvements in downwind ozone 

concentrations at the identified nonattainment and maintenance 

receptors for the final rule.

To assess downwind air quality impacts for each 

nonattainment or maintenance receptor identified in this 

rulemaking, the EPA evaluated the air quality change at that 

receptor expected from the progressively more stringent upwind 
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EGU NOX emission budgets quantified for each uniform NOX control 

stringency level. This assessment provides the downwind ozone 

improvements for consideration and provides air quality data 

that is used to evaluate over-control.

In order to assess the air quality impacts of the various 

control stringencies, the EPA evaluated changes resulting from 

the application of the emission budgets to states that are 

linked to each receptor as well as the state containing the 

receptor. By applying each budget level to the state containing 

the receptor, the EPA ensures that it is accounting for the 

downwind state’s fair share. For states that were not linked to 

that receptor, the air quality change at that receptor was 

evaluated assuming emissions equal to the adjusted historic 

emission level, including Pennsylvania RACT. This method holds 

each upwind state responsible for its fair share of the downwind 

problems to which it is linked. Reductions made by other states 

in order to address air quality problems at other receptors do 

not increase or decrease this fair share. This approach removes 

state equity considerations from this component of the multifactor test and preserves the apportionment of upwind 

responsibility to the assessment of uniform control stringency 

represented by cost, which the Supreme Court found to be “an 

efficient and equitable solution to the allocation problem the 
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Good Neighbor Provision requires the Agency to address.” 134 

S.Ct. at 1607. 

For this assessment, the EPA used an ozone air quality 

assessment tool (ozone AQAT) to estimate downwind changes in 

ozone concentrations related to upwind changes in emission 

levels. This tool is similar to the AQAT tool used in the 

original CSAPR to evaluate changes in PM2.5 concentrations. The 

ozone AQAT uses simplifying assumptions regarding the 

relationship between each state’s change in EGU NOX emissions and 

the corresponding change in ozone concentrations at 

nonattainment and maintenance receptors to which that state is 

linked. This method is calibrated using two CAMx air quality 

modeling scenarios that fully account for the non-linear 

relationship between emissions and air quality associated with 

atmospheric chemistry. See the Ozone Transport Policy Analysis 

Final Rule TSD for additional details.

For each emission budget level and for each receptor, the 

EPA evaluated the magnitude of the change in concentration and 

determined whether the estimated concentration would resolve the 

receptor’s nonattainment or maintenance concern by lowering the 

average or maximum design values below 76 ppb, respectively.

As an example, the EPA evaluated the Harford County, 

Maryland receptor with all linked states and Maryland meeting 
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emission budgets reflecting controls available at $800 per ton 

of NOX emissions reduced. Adding up the state-by-state changes in 

air quality contributions resulting from the changes in 

emissions, this assessment showed a 0.1 ppb reduction in 

expected ozone design values. After subtracting this air quality 

improvement from the design values quantified in section V of 

this preamble, the residual design values at this site are still 

expected to exceed the 2008 ozone NAAQS with an average design 

value of 79.0 ppb and a maximum design value of 81.6 ppb. Next, 

the EPA evaluated this receptor with all linked states and 

Maryland meeting emission budgets reflecting controls available 

at $1,400 per ton. This assessment showed a 0.4 ppb reduction in 

expected ozone design values. At emission budgets reflecting 

$1,400 per ton, the residual design values at this site are 

expected to continue to exceed the 2008 ozone NAAQS with an 

average design value of 78.7 ppb and a maximum design value of 

81.3 ppb. Next, the EPA evaluated this receptor with all linked 

states and Maryland meeting emission budgets reflecting controls 

available at $3,400 per ton. This assessment showed a 0.6 ppb 

reduction in expected ozone design values. At emission budgets 

reflecting $3,400 per ton, the residual design values at this 

site are expected to continue to exceed the 2008 ozone NAAQS 

with an average design value of 78.5 ppb and a maximum design 
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value of 81.2 ppb. Next, the EPA evaluated this receptor with 

all linked states and Maryland meeting emission budgets 

reflecting controls available at $5,000 per ton. This assessment 

showed a 0.7 ppb reduction in expected ozone design values. At 

emission budgets reflecting $5,000 per ton, the residual design 

values at this site are expected to continue to exceed the 2008 

ozone NAAQS with an average design value of 78.4 ppb and a 

maximum design value of 81.1 ppb. Next, the EPA evaluated this 

receptor with all linked states and Maryland meeting emission 

budgets reflecting controls available at $6,400 per ton. This 

assessment showed a 0.7 ppb reduction in expected ozone design 

values. At emission budgets reflecting $6,400 per ton, the 

residual design values at this site are expected to continue to 

exceed the 2008 ozone NAAQS with an average design value of 78.4

ppb and a maximum design value of 81.0 ppb.

Generally, the EPA evaluated the air quality improvements 

at each monitoring site for the emission budgets associated with 

each progressively more stringent emission budget. For more 

information about how this assessment was performed and the 

results of the analysis for each receptor, refer to the Ozone 

Transport Policy Analysis Final Rule TSD.

As part of this analysis, the EPA evaluates potential overcontrol with respect to whether (1) the expected ozone
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improvements would be sufficient or greater than necessary to

resolve the downwind ozone pollution problem (i.e., resolving 

nonattainment or maintenance problems) or (2) the expected ozone

improvements would reduce upwind state ozone contributions to 

below the screening threshold (i.e., one percent of the NAAQS).

In EME Homer City, the Supreme Court held that the EPA 

cannot “require[] an upwind State to reduce emissions by more 

than the amount necessary to achieve attainment in every

downwind State to which it is linked.” 134 S.Ct. at 1608. On 

remand from the Supreme Court, the D.C. Circuit held that this 

means that the EPA might overstep its authority “when those 

downwind locations would achieve attainment even if less 

stringent emissions limits were imposed on the upwind States 

linked to those locations.” EME Homer City II, 795 F.3d at 127.

The D.C. Circuit qualified this statement by noting that this 

“does not mean that every such upwind State would then be 

entitled to less stringent emission limits. Some of those upwind 

States may still be subject to the more stringent emissions 

limits so as not to cause other downwind locations to which 

those States are linked to fall into nonattainment.” Id. at 14-

15. As the Supreme Court explained, “while EPA has a statutory 

duty to avoid over-control, the Agency also has a statutory 

obligation to avoid ‘under-control,’ i.e., to maximize 
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achievement of attainment downwind.” 134 S.Ct. at 1609. The 

Court noted that “a degree if imprecision is inevitable in 

tackling the problem of interstate air pollution.” Id.

“Required to balance the possibilities of under-control and 

over-control, EPA must have leeway in fulfilling its statutory 

mandate.” Id.

Consistent with these instructions from the Supreme Court 

and the D.C. Circuit, the EPA first evaluated whether reductions 

resulting from the $800 per ton emission budgets can be 

anticipated to resolve any downwind nonattainment or maintenance 

problems (as defined in section V) and by how much. This 

assessment shows that the emission budgets reflecting $800 per

ton would resolve maintenance problems at one downwind 

maintenance receptors –- Philadelphia, Pennsylvania (maximum 

design value of 75.8 ppb). The EPA’s assessment shows that no 

state included in the CSAPR Update is linked solely to the 

Philadelphia receptor that is resolved at the $800 per ton level 

of control stringency.

Next, the EPA evaluated whether reductions resulting from 

the $1,400 per ton emission budgets can be anticipated to 

resolve any further downwind nonattainment or maintenance 

problems. For the 22 CSAPR Update states, the EPA assessed 

further EGU NOX reductions of emission budgets reflecting $1,400 
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per ton and found that the emission budgets reflecting $1,400

per ton would resolve nonattainment and maintenance problems at 

one downwind nonattainment receptors –- Jefferson County, 

Kentucky (maximum design value of 75.7 ppb) –- and would resolve 

maintenance problems at one additional downwind maintenance 

receptor -- Hamilton County, Ohio (maximum design value of 75.1

ppb). The EPA’s assessment shows that this control level does 

resolve the only identified nonattainment or maintenance 

problems to which Tennessee is linked -– the Hamilton County, 

Ohio and Philadelphia, Pennsylvania receptors. However, no other 

no state included in the CSAPR Update is linked solely to these 

receptors that are resolved at the $1,400 per ton level of 

control stringency.

In light of the improvements at the maintenance receptors 

to which Tennessee is linked, the EPA evaluated the magnitude of 

those improvements and whether the air quality problems could 

have been resolved at a lower level of control stringency. At 

the emission budgets reflecting $1,400 per ton, the EPA’s 

assessment demonstrates that the receptors to which Tennessee is 

linked would just be maintaining the standard, with maximum 

design values of 75.5 (Philadelphia) and 75.1 ppb (Hamilton 

County), which the EPA truncates to compare against the 2008 

ozone standard. Consistent with the manner in which the EPA 
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truncates design values to evaluate NAAQS attainment, these 

concentrations are equal to the level of the 2008 ozone NAAQS at 

75 ppb. Therefore, the emission reductions that would be 

achieved by emission budgets reflecting $1,400 per ton would not 

result in air quality improvements at these receptors

significantly better than the standard such that emission 

reductions might constitute over-control as to the receptors. On 

the contrary, the emission reductions achieved in upwind states 

by emission budgets reflecting $1,400 per ton are necessary to 

bring the maximum design value at the receptors into alignment 

with the standard. The EPA finds that, based on the information 

supporting this final rule, the $1,400 per ton emission budget 

level would not constitute over-control for Tennessee or for any 

other state included in the CSAPR Update.

In EME Homer City, the Supreme Court also held that “EPA 

cannot require a State to reduce its output of pollution . . . 

at odds with the one percent threshold the Agency has set.” 134 

S.Ct. at 1608. The Court explained that “EPA cannot demand 

reductions that would drive an upwind State’s contribution to 

every downwind State to which it is linked below one percent of 

the relevant NAAQS.” Id. Accordingly, the EPA evaluated the 

potential for over-control with respect to the one percent

threshold applied in this rulemaking at each relevant emission 
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budget level. Specifically, the EPA evaluated whether the

emission budget levels would reduce upwind EGU emissions to a 

level where the contribution from any upwind state would be 

below the one percent threshold that linked the upwind state to 

the downwind receptors. If the EPA found that any state’s 

emission budget would decrease its contribution below the one 

percent threshold to every downwind receptor to which it is 

linked, then it would adjust the state’s reduction obligation 

accordingly. The EPA’s assessment reveals that there is not 

over-control with respect to the one percent threshold at any of 

the evaluated uniform cost emission budget levels in any upwind 

state. Most relevant, the EPA finds that under the $800 per ton 

and $1,400 per ton emission budgets, all 22 eastern states that 

contributed greater than or equal to the one percent threshold 

in the base case continued to contribute greater than or equal 

to one percent of the NAAQS to at least one downwind 

nonattainment or maintenance receptor. For more information 

about this assessment, refer to the Ozone Transport Policy 

Analysis Final Rule TSD.

Considering the EPA’s findings with respect to application 

of the multi-factor test and over-control, the EPA is finalizing 

ozone season EGU NOX emission budgets reflecting $1,400 per ton 

of EGU NOX control for all CSAPR Update states. The EPA finds 
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that the finalized Tennessee emission budget fully addresses 

Tennessee’s good neighbor obligation with respect to the 2008 

ozone NAAQS. For the remaining CSAPR Update states, final 

emission budgets reflecting $1,400 per ton of EGU NOX control 

represent a partial solution for these states’ good neighbor 

obligation with respect to the 2008 ozone NAAQS. 

In establishing emission budgets reflecting $1,400 per ton 

of EGU NOX control, the EPA notes that combustion controls are 

the only EGU NOX reduction strategy that the EPA generally 

considers feasible for the 2017 ozone season in quantifying 

emission budgets for the final CSAPR Update and that also 

requires new construction. For this unique reason, in developing 

each state emission budget, the EPA specifically considered the 

number of EGUs with NOX reduction potential from installing 

state-of-the-art combustion controls, 2015 reliance on these 

EGUs for electricity generation in the state, and the magnitude 

of reductions relative to the resulting emission budgets.

These data indicate that nearly all of the EGU NOX reduction 

potential for one state, Arkansas, comes from installing stateof-the-art combustion controls. The EPA’s analysis for the final 

rule finds that two units at White Bluff and two units at 

Independence power plants in Arkansas have significant EGU NOX

reduction potential from the installation of state-of-the-art 
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combustion controls. The NOX reduction potential from these units 

is uniquely significant relative to Arkansas’ resulting emission 

budget. The agency’s analysis finds approximately 3,000 tons of 

ozone season NOX reduction potential from these 4 units in 

Arkansas. If the EPA were to calculate a 2017 emission budget 

for Arkansas that includes reductions attributable to combustion 

controls, these reductions would be equivalent to 33 percent of 

Arkansas’ resulting emission budget. The NOX reduction potential 

from installing combustion controls has an outsized effect on 

Arkansas’ resulting emission budget relative to other states.

Arkansas is unique with respect to emission reduction potential 

achievable from combustion controls relative to its 

corresponding emission budget. In all other states covered by 

this rule, reduction potential from combustion controls relative 

to the CSAPR Update rule emission budgets is 11 percent or less. 

While the EPA does not anticipate that sources in any other 

state would have difficulty installing upgraded combustion 

controls for the 2017 ozone season, for the reasons described 

earlier, the relatively low number of expected emissions 

reductions from those controls means that failure of any of 

these sources to install such controls would not lead the state 

to exceed the assurance levels and incur CSAPR assurance 

penalties.
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Further, these units at White Bluff and Independence power 

plants in Arkansas, combined, accounted for nearly 40 percent of 

the state’s 2015 heat input. Compared to other CSAPR Update 

states, Arkansas is also uniquely situated in this regard. In 

all other states covered by this rule, the percentage of statelevel heat input from units with reduction potential from 

installation of combustion controls is 20 percent or less. The 

CSAPR allowance trading program allows Arkansas’ utilities the 

option to choose alternative compliance paths. However, the EPA 

considers that if their compliance path included combustion 

controls for these units, then it may be difficult to schedule 

outage time to upgrade all four of the Arkansas units to stateof-the-art combustion controls for the 2017 ozone season and 

supply adequate electricity to meet demand in the state. 

If, due to the unique feasibility concerns discussed 

earlier, the Arkansas units could not install upgraded controls 

for the 2017 ozone season, Arkansas utilities could exceed the 

CSAPR assurance level in 2017.150 In such circumstances, Arkansas 

utilities would not only need to purchase allowances for 

compliance, but they would also face the CSAPR assurance 

provision penalty, meaning that for emissions exceeding the 

 

150 More information about CSAPR Update Rule assurance levels can be found in 

section VII of this notice.
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assurance level, utilities would need to surrender three

allowances for each ton of emissions.

In light of these unique circumstances, the EPA believes 

that it is prudent and appropriate to finalize for Arkansas a 

2017 ozone season emission budget for Arkansas that does not 

account for EGU NOX reduction potential from combustion controls 

and a 2018 ozone season emission budget for Arkansas that does 

account for EGU NOX reduction potential from combustion controls. 

This approach provides utilities an extra year to upgrade 

combustion controls in the event that this is their chosen CSAPR 

Update compliance path. This extra year allows for upgrades to 

be made across four shoulder seasons (fall 2016, spring 2017, 

fall 2017, and spring 2018). 

The emission budgets that the EPA is finalizing in FIPs for 

the CSAPR Update rule are summarized in table VI.E-2.

Table VI.E-2. Final 2017 EGU NOX Ozone Season Emission Budgets 

for the CSAPR Update Rule (Ozone Season NOX Tons) 

State

2015 

Emissions

Adjusted 

Historical

Emissions

CSAPR Update Rule 

2017* Emission 

Budgets

Alabama 20,369 15,179 13,211

Arkansas 12,560 12,560 12,048 / 9,210

Illinois 15,976 14,850 14,601

Indiana 36,353 31,382 23,303

Iowa 12,178 11,478 11,272

Kansas 8,136 8,031 8,027

Kentucky 27,731 26,318 21,115

Louisiana 19,257 19,101 18,639
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Maryland 3,900 3,871 3,828

Michigan 21,530 19,811 17,023

Mississippi 6,438 6,438 6,315

Missouri 18,855 18,443 15,780

New Jersey 2,114 2,114 2,062

New York 5,593 5,531 5,135

Ohio 27,382 27,382 19,522

Oklahoma 13,922 13,747 11,641

Pennsylvania 36,033 35,607 17,952

Tennessee 9,201 7,779 7,736

Texas 55,409 54,839 52,301

Virginia 9,651 9,367 9,223

West Virginia 26,937 26,874 17,815

Wisconsin 9,072 7,939 7,915

22 State Region 398,596 378,641 316,464 / 313,626

*The EPA is finalizing CSAPR EGU NOX ozone season emission 

budgets for Arkansas of 12,048 tons for 2017 and 9,210 tons for 

2018 and subsequent control periods.

The EPA’s selection of emission budgets for this rule is 

specific to, and appropriate for, defining near-term achievable 

upwind obligations with respect to the 2008 ozone NAAQS in 

states where a FIP is necessary. The EPA does not intend –- nor 

does it believe it would be justified in doing so in any event -

– that the cost-level-based determinations in this rule impose a 

constraint for selection of cost levels in addressing 

transported pollution with respect to future NAAQS and/or any 

revisions to these FIPs for any other future transport rules 

that the EPA may develop to address any potential remaining 
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obligation as to the current NAAQS, for which different cost 

levels may be appropriate.

In addition to 22 states identified previously, the EPA 

also assessed the potential for EGU NOX reductions in Delaware 

and the District of Columbia. This assessment finds that the 

District of Columbia does not have any affected EGUs. As a 

result, despite the District of Columbia’s linkage to the 

Harford County, Maryland receptor, the District does not have 

any EGU NOX reduction potential. The EPA also has not taken 

action to approve or disapprove a pending good neighbor SIP 

addressing the 2008 ozone NAAQS. Given that the District of 

Columbia does not have any affected sources and the District’s 

SIP is still before the agency, the EPA is not finalizing a FIP 

for the District in this action. Also, the EPA’s assessment of 

EGU NOX reduction potential shows zero reductions available in 

Delaware in 2017 at any evaluated cost threshold because they 

are already equivalently controlled. Given this information and 

the fact that Delaware’s SIP is also still pending before the 

agency, we are not promulgating a FIP for Delaware in this rule. 

The EPA will consider the information developed for this rule, 

as appropriate, in evaluating the good neighbor SIPs for these 
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areas,151 and if the EPA ultimately disapproves those SIPs, the 

EPA will address any resulting FIP obligation separately.

The proposed CSAPR Update sought comment on whether or not 

to include Wisconsin in the final CSAPR Update considering that 

the modeling data for the proposal showed zero NOX reduction 

potential for Wisconsin under the proposed EGU NOX control 

stringency. Unlike our analysis at proposal, the EGU NOX emission 

reduction potential analysis for the final rule shows that EGUs 

in Wisconsin and all 22 CSAPR Update states have EGU emission 

reductions available using the uniform control stringency 

represented by $1,400 per ton. Further, ozone season emission 

budgets that the EPA is finalizing in the CSAPR Update represent 

reductions from 2015 emission levels for Wisconsin and all 22 

CSAPR Update states. The EPA is therefore including each of the 

22 CSAPR Update states in the final CSAPR Update to ensure that 

each state achieves NOX emission reductions to address 

significant contribution to nonattainment or interference with 

maintenance of downwind pollution with respect to the 2008 ozone 

NAAQS.

VII. Implementation Using the Existing CSAPR NOX Ozone Season 

Allowance Trading Program and Relationship to Other Rules

 

151 As noted earlier, the EPA has not taken final action to approve or 

disapprove Delaware’s good neighbor SIP addressing the 2008 ozone NAAQS.
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A. Introduction

This section addresses step four of the CSAPR framework by

describing how the EPA will implement and enforce the EGU 

emission budgets quantified in section VI, which represent the 

remaining EGU emissions after reducing those amounts of each 

state’s emissions that significantly contribute to downwind 

nonattainment or interfere with maintenance of the 2008 ozone 

NAAQS in downwind states. See Table VI.E-2 for final emission 

budgets. The EPA is finalizing FIPs with respect to the 2008 

ozone NAAQS for each of the 22 states covered by this rule. The 

FIPs will require affected EGUs to participate in the CSAPR NOX

ozone season trading program subject to the final emission 

budgets. The EPA is updating the CSAPR NOX ozone season program 

requirements in 40 CFR part 97 to reflect these CSAPR NOX ozone 

season emission budgets and final CSAPR Update Rule trading 

program requirements. 

The CSAPR NOX ozone season trading program is a market-based 

approach that implements emission reductions needed to meet the 

CAA’s good neighbor requirements. The emission budgets establish 

state-level aggregate emission caps that specify the quantity of 

emissions authorized from affected EGUs. The EPA creates 

individual authorizations (“allowances”) to emit a specific 

quantity (i.e., 1 ton) of ozone season NOX. The total number of 
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allowances equals the level of the emission budgets, which 

partially address interstate emission transport under the good 

neighbor provision for the 2008 ozone NAAQS. To be in 

compliance, each participant must hold allowances equal to its 

actual emissions for each control period. It may buy or sell 

(trade) them with other market participants. Each affected EGU 

can design its own compliance strategy – emission reductions and 

allowance purchases or sales – to minimize its compliance cost. 

And it can adjust its compliance strategy in response to changes 

in technology or market conditions. The compliance flexibility 

provided by the CSAPR NOX ozone season trading program does not 

prescribe unit-specific and technology-specific NOX mitigation. 

While the EPA establishes emission budgets that reflect emission 

reductions that can be achieved by certain near-term and cost 

effective EGU NOX mitigation strategies (e.g., turning on idled 

SCRs), no particular EGU NOX reduction strategy is required for 

any specific EGU to demonstrate compliance with the CSAPR Update 

rule. 

In order to ensure that each upwind state addresses its 

significant contribution to nonattainment or interference with 

maintenance and to accommodate inherent year-to-year variability 

in state-level EGU operations, the CSAPR NOX ozone season trading 

program includes variability limits and assurance provisions. 
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These provisions are unchanged from those established in the 

original CSAPR with the exception of each CSAPR Update state 

having a revised variability limit and assurance level that 

corresponds with its revised emission budget. The CSAPR 

assurance provisions require additional allowance surrender 

penalties (a total of 3 allowances per ton of emissions152) on 

emissions that exceed a state’s CSAPR NOX ozone season assurance 

level, or 121 percent of the emission budget.

When the EPA finalized the original CSAPR in 2011, the rule 

established regional trading programs designed to costeffectively reduce transported emissions of SO2 and NOX from 

power plants in eastern states that affect air quality in 

downwind states. See 76 FR 48272 and 48273 (August 8, 2011). The 

EPA envisioned that this approach to implementing necessary 

emission reductions could be used to address transport 

obligations under other existing NAAQS and future NAAQS 

revisions. See 76 FR 48211 and 48246 (August 8, 2011). The EPA 

is finalizing implementation of the CSAPR Update emission 

budgets using the CSAPR NOX ozone season allowance trading 

program, with certain updates. Using the familiar CSAPR trading 

program to implement these near-term EGU reductions for the 2008 

 

152 Each excess ton above the assurance level must be met with one allowance 

for normal compliance plus two additional allowances to satisfy the penalty.
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ozone standard provides many significant advantages, including 

certainty in emission reductions achieved by dint of caps on 

emissions and air quality-assured allowance trading, ease of 

transition to the new emission budgets, the economic and 

administrative efficiency of trading approaches, and the 

flexibility afforded to sources regarding compliance.

The first control period for the requirements finalized in 

these FIPs is the 2017 ozone season (May 1, 2017 – September 30, 

2017). Affected EGUs within each covered state must demonstrate 

compliance with FIP requirements for the 2017 ozone season and 

each subsequent ozone season unless and until the state submits 

a SIP that the EPA approves as replacing the FIP, or the EPA 

promulgates another federal rule replacing or revising the FIP. 

In this section of the preamble, the following topics are 

addressed: new and revised FIPs; updates to CSAPR NOX ozone 

season trading requirements, including trading program structure 

and treatment of banked allowances; feasibility of compliance; 

key elements of the CSAPR trading programs; replacing the FIP 

with a SIP; title V permitting; and the relationship of this 

rule to other emission trading and ozone transport programs (NOX

SIP Call, CSAPR trading programs, CPP).

B. New and Revised FIPs
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As explained in section III in this preamble, the EPA is 

finalizing new or revised FIP requirements only for those states 

where the EPA has the authority and obligation to promulgate a 

FIP addressing the state’s interstate transport obligation 

pursuant to CAA section 110(a)(2)(D)(i)(I) for the 2008 ozone 

NAAQS. That is, the EPA is finalizing new or revised FIP 

requirements for certain states where the EPA either found that 

the state failed to submit a complete good neighbor SIP or 

disapproved a good neighbor SIP for that state. Moreover, the 

EPA is only finalizing new or revised FIP requirements for those 

states identified in sections V and VI of this preamble, whose 

emissions significantly contribute to nonattainment or interfere 

with maintenance of the 2008 ozone NAAQS in other eastern 

states. For those states that contribute below the one percent 

threshold applied in section V of this preamble, the EPA 

concludes that the state’s emissions do not significantly 

contribute to nonattainment or interfere with maintenance of the 

2008 ozone NAAQS. There is therefore no need to impose further 

emission limits on sources within those states through issuance 

of new or revised FIP requirements. 

Of the 22 states required to participate in the CSAPR NOX

ozone season trading program under this CSAPR Update, 21
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states153 already comply with the original CSAPR NOX ozone season 

requirements with respect to the 1997 ozone NAAQS. For those 21 

states, the EPA is revising their existing FIP requirements to 

require compliance with updated budgets at the levels in Table 

VI.E-2. One state, Kansas, has newly added CSAPR NOX ozone season 

compliance requirements in this action. For Kansas, the agency 

is establishing new FIP requirements to require compliance with 

a budget at the level in Table VI.E-2. 

One state, Georgia, has a continued compliance requirement 

under the original CSAPR NOX ozone season program with respect to 

the 1997 ozone NAAQS and is not found to significantly

contribute to nonattainment or interfere with maintenance of the 

2008 ozone NAAQS in other states. Therefore, Georgia’s CSAPR NOX

ozone season requirements (including its emission budget) 

continue unchanged pursuant to the state’s previously-defined 

obligation that was quantified to address the 1997 ozone NAAQS, 

and the EPA is not making any changes to the existing FIP 

requirements for Georgia contained in 40 CFR part 52. 

Three states (Florida, North Carolina, and South Carolina)

are currently subject to the CSAPR NOX ozone season trading 

 

153 Alabama, Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, 

Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, Oklahoma, 

Pennsylvania, Tennessee, Texas, Virginia, West Virginia, and Wisconsin.
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program with respect to the 1997 ozone NAAQS under the original 

CSAPR. However, as described in section IV of this preamble, the 

phase 2 NOX ozone season budgets154 for these three states were 

remanded to the EPA for reconsideration by the D.C. Circuit in 

EME Homer City II, 795 F.3d at 138. In this final rule, the EPA 

finds that emissions from Florida, North Carolina, and South 

Carolina do not significantly contribute to nonattainment or 

interfere with maintenance of either the 1997 ozone NAAQS or the 

2008 ozone NAAQS in other states. Accordingly, starting with the 

2017 ozone season, these three states will no longer be subject 

to CSAPR NOX ozone season trading program requirements and EGUs 

in these states will not be allocated further allowances nor 

obligated to demonstrate compliance with CSAPR NOX ozone season 

requirements. The EPA is revising 40 CFR part 52 to remove CSAPR 

NOX ozone season program requirements for these three states. 

C. Updates to CSAPR NOX Ozone Season Trading Program 

Requirements

For the CSAPR Update rule, the EPA is finalizing certain 

updates to the CSAPR NOX ozone season trading program to 

transition the existing original CSAPR NOX ozone season trading 

program, designed to address the 1997 ozone NAAQS, to address 

 

154 CSAPR phase 1 NOX ozone season emission budgets are effective for 2015 and 

2016 while phase 2 NOX ozone season emission budgets would be effective 

starting with the 2017 ozone season.
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new requirements as to interstate emission transport for the 

2008 ozone NAAQS. These changes will be effective for the 2017 

ozone season control period. In this context, the EPA determines 

the extent to which allowances issued under emission budgets 

established to address interstate transport with respect to the 

1997 ozone NAAQS would or would not be eligible for compliance 

under this rule for affected EGUs with emission budgets 

established to address interstate transport for the 2008 ozone 

NAAQS. In developing approaches to transition the CSAPR trading 

program, the EPA weighed several factors, including achieving 

the environmental goal of the CSAPR Update (i.e., achieving 

necessary emission reductions to address interstate transport 

with respect to the 2008 ozone NAAQS) and feasibility of 

implementing the CSAPR Update rule. The EPA proposed and took 

comment on several approaches regarding this transition of the 

original CSAPR NOX ozone season program to address interstate 

emission transport for the more recent 2008 ozone NAAQS. 

The EPA considered whether CSAPR NOX ozone season allowances 

issued in 2017 and thereafter to affected EGUs in original CSAPR 

states without updated CSAPR NOX ozone season trading program 

budgets (i.e., Georgia) can be used for compliance in the 22 

CSAPR Update states and vice versa. As described later on, this 

final rule prohibits the use of allowances for compliance 
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between Georgia and the CSAPR Update states because of the 

differences in air quality goals (i.e., the 1997 ozone NAAQS 

versus the 2008 ozone NAAQS) and the different NOX control 

stringency used to establish emission budgets necessary to 

achieve those air quality goals. The EPA is implementing this

prohibition by establishing two distinct trading groups with 

distinct allowances within the CSAPR NOX ozone season allowance 

trading program. The EPA provides an option for Georgia to 

voluntarily adopt via SIP a commensurate CSAPR Update emission 

budget that would obviate this prohibition by including Georgia 

in the trading group with the CSAPR Update states.

The EPA also considered whether, and to what extent,

banked155 2015 and 2016 CSAPR NOX ozone season allowances issued 

under original CSAPR NOX ozone season emission budgets should be 

eligible for compliance in CSAPR Update states in 2017 and 

beyond. As described later on, this rule establishes a one-time 

allowance conversion that transitions a limited number of banked 

2015 and 2016 allowances (approximately 99,700 allowances) for 

compliance use in CSAPR Update states. This allowance conversion 

is designed to limit the potential use of banked allowances to 

no more than one year of the CSAPR variability limits in order 

 

155 Allowances that were not used for compliance and were saved for use in a 

later compliance period.
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to ensure that implementation of the trading program will result 

in NOX emission reductions sufficient to address significant 

contribution to nonattainment or interference with maintenance 

of downwind pollution with respect to the 2008 ozone NAAQS.

However, the conversion also facilitates compliance with the 

CSAPR Update by carrying over some allowances that can be used 

for compliance.

1. Relationship of Allowances and Compliance for CSAPR Update 

States and States with Ongoing Original CSAPR Requirements

The final rule establishes two trading groups within the 

CSAPR NOX ozone season allowance trading program. Group 2 is 

newly established and is comprised of the 22 CSAPR Update 

states. Group 1, at this time, consists of Georgia. The CSAPR 

Update rule ozone season Group 1 and Group 2 trading programs

are codified under 40 CFR Part 97, Subparts BBBBB for Group 1 

and EEEEE for Group 2, to enact the EGU NOX ozone season emission 

budgets for the 2008 ozone NAAQS. Section 52.38(b) has been 

amended to update which sources are subject to the requirements 

of the respective subparts of part 97 for control periods after 

2016.

The EPA will issue distinct allowances for these trading 

groups, CSAPR NOX ozone season Group 1 allowances and CSAPR NOX

ozone season Group 2 allowances, for the 2017 ozone season 
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control period and subsequent control periods. Covered entities 

may transfer, trade (buy and sell), and bank (save) these 

allowances. Pursuant to the CSAPR trading program regulations, 

compliance is demonstrated by holding and surrendering one 

allowance for each ton of ozone season NOX emitted during the 

control period (i.e., ozone season). The CSAPR Update finalizes 

provisions governing compliance that prohibit the use of Group 1 

allowances for compliance in Group 2 states or the use of Group 

2 allowances for compliance in Group 1 states.156 Aside from 

revised emission budgets for CSAPR NOX ozone season Group 2 

states and the prohibition of using Group 1 allowances for 

compliance in Group 2 states, and vice versa, the CSAPR Update 

rule NOX ozone season trading programs’ implementation 

requirements (e.g., monitoring, reporting, assurance provisions) 

are substantively identical to the original CSAPR NOX ozone 

season trading program. 

In the original CSAPR SO2 annual allowance trading program, 

the EPA discussed its concern with permitting the use of 

allowances for compliance between groups of states linked to air 

pollution problems that are more easily resolved and groups of 

 

156 There are limited exceptions for circumstances where a source becomes 

subject to a requirement to hold additional Group 1 allowances after Group 1 

allowances have been converted to Group 2 allowances, as discussed in section 

IX in this preamble.
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states linked to air pollution problems that are more 

persistent. The EPA was concerned that allowance trading between 

these groups of states could undermine the capacity of the rule 

to achieve the emission reductions required by the good neighbor 

provision of the CAA. Specifically, trading between these groups 

could lead to greater emission reductions in states linked to 

more easily resolved air pollution problems and fewer emission 

reductions in states linked to more persistent air pollution 

problems. This concern arose, in part, because the EPA 

identified different levels of significant contribution to 

nonattainment or interference with maintenance for these groups 

of states. As a result, these groups’ emission budgets were 

established using different levels of control stringency. 

Allowing trading between groups of states with emission budgets 

representing substantially different uniform costs could lead to 

allowance transfers from EGUs in states with less stringent 

emission budgets to EGUs in states with more stringent emission 

budgets.157 The EPA was concerned that allowing trading between 

such groups of states could increase the risk of emissions 

within a state exceeding the CSAPR emission budget or assurance 

level. For these reasons, the original CSAPR rulemaking

 

157 76 FR at 48263-64.
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prohibited the use of CSAPR SO2 Group 1 allowances in SO2 Group 2 

states and vice versa.

In similar fashion, in order to ensure that the CSAPR NOX

ozone season trading program implements emission reductions 

needed to meet the CAA’s good neighbor requirements for the 

CSAPR Update states, the EPA is finalizing a prohibition on 

allowance usage between Georgia and the CSAPR Update states. 

Specifically, for the final CSAPR Update rule, the EPA 

determines that allowances issued in 2017 and thereafter under 

the original CSAPR will not be eligible for compliance in the 22

CSAPR Update states, and vice versa. The EPA is finalizing this 

prohibition because states participating in the original CSAPR 

NOX ozone season program (i.e., Georgia) are doing so to address 

interstate emission transport for the 80 ppb 1997 ozone NAAQS,

while CSAPR Update States are addressing interstate emission 

transport for the 75 ppb 2008 ozone NAAQS. The air quality 

assessment performed for this rule shows that ozone pollution 

problems with respect to the 75 ppb standard are relatively more 

robust than ozone problems with respect to the 80 ppb standard. 

Further, due in part to these differences in ozone pollution

risk represented by the two standards, the EPA has identified 

different levels of significant contribution to nonattainment or 

interference with maintenance for these groups and the 
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corresponding emission budgets and assurance levels reflect 

different levels of EGU NOX control stringency. The original 

CSAPR NOX ozone season emission budgets and assurance levels 

reflect $500 per ton of NOX emissions reduced while the CSAPR 

Update emission budgets and assurance levels reflect $1,400 per

ton of NOX emissions reduced. The EPA finds this substantial 

difference in uniform cost could lead to allowance transfers 

from EGUs in Georgia to EGUs in CSAPR Update states. 

Specifically, the EPA notes that the ratio of marginal cost of 

ozone season NOX control reflected in these emission budgets is 

nearly three-to-one, which is similar to the three-to-one 

assurance provision allowance surrender penalty that is incurred 

on emissions that exceed any state’s assurance level (121

percent of the emission budget). The EPA finds that allowing 

trading between Georgia and the CSAPR Update states could 

increase the risk that emissions in CSAPR Update states exceed 

their emission budget or their assurance level. 

The EPA does not expect that the prohibition of using CSAPR 

Update rule NOX ozone season Group 2 allowances for compliance in 

Group 1 states will create significant concern regarding 

feasibility of compliance for Group 1 states. Georgia’s ozone 

season emissions have been well below its original CSAPR NOX

ozone season emission budget for several years. The EPA 
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anticipates that units within the state will continue to meet 

compliance obligations even without the ability to use CSAPR 

Update rule NOX ozone season Group 2 allowances for compliance. 

Further, the EPA is quantifying an optional CSAPR Update rule 

EGU NOX ozone season emission budget for Georgia, using the same 

methods and uniform cost as budgets for CSAPR Update states. 

This emission budget reflects protection of downwind air quality 

under the 2008 ozone NAAQS. If Georgia chooses to adopt this 

emission budget via a revised SIP submittal, then the EPA 

believes that such a SIP submission may be approvable and 

Georgia may thereby opt into the CSAPR Update rule NOX ozone 

season Group 2 trading program and use the CSAPR Update rule NOX

ozone season Group 2 allowances for compliance. 

Comment: Commenters suggested that if states subject to the 

original CSAPR for the 1997 ozone NAAQS are not found to 

significantly contribute to nonattainment or interfere with 

maintenance for the 2008 ozone NAAQS, then allowances issued in 

those states should not be part of the remedy, since there is no 

physical connection between NOX allowances issued for those 

states and the downwind ozone nonattainment or maintenance 

problem that another state’s reductions must address for a 

different NAAQS.
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Response: In light of the specific differences in ozone 

pollution problems addressed, level of significant contribution 

to nonattainment or interference with maintenance, and marginal 

cost of NOX reduction used to establish emission budgets for the 

original CSAPR and the CSAPR Update rule, the EPA agrees that it 

is reasonable to prohibit the use of CSAPR Update rule NOX ozone 

season Group 1 allowances for compliance in Group 2 states and 

vice versa, as described previously.

Comment: Commenters suggested that there should not be a 

prohibition on using allowances between these groups of states

and that the CSAPR assurance provisions are sufficient to ensure 

that emission reductions are made in upwind states.

Response: The assurance provisions provide limited 

flexibility around the finalized emission budgets developed 

using uniform control stringency to accommodate inherent 

variability in average power sector operations. For example, 

assurance levels are intended to accommodate specific unusual 

events, such as sudden and unexpected outages of a unit, or 

severe weather. The assurance level is intended to function as a 

not-to-exceed cap that includes both the state budget –-

established to reduce significant contribution to and 

interference with maintenance of the 2008 ozone NAAQS in 

downwind states -– and the variability limit. The flexibility 
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provided by the assurance provisions is not designed to address 

interstate trading in the case of two groups of states that are 

addressing different ozone pollution problems, levels of 

significant contribution to nonattainment or interference with 

maintenance, or levels of EGU NOX reduction stringency in 

emission budgets. Further, as described previously, the EPA 

finds that were it to authorize use of allowances issued to EGUs 

in Georgia for compliance in CSAPR Update states, the risk of 

emissions in a CSAPR Update state exceeding its emission budget 

or assurance level would increase.

2. Use of Banked Vintage 2015 and 2016 CSAPR NOX Ozone Season 

Trading Program Allowances for Compliance in CSAPR Update States

In this subsection, the EPA describes its approach to 

transition a limited number of allowances that were banked in 

2015 and 2016 under the original CSAPR EGU NOX ozone season 

emission budgets into the allowances that can be used for 

compliance in CSAPR Update states in 2017 and thereafter. As 

proposed, the EPA is finalizing a limit on the number of banked 

allowances carried over based on the need to assure that the CAA

objective of the CSAPR Update is achieved. This approach

transitions some allowances for compliance to further ensure 

feasibility of implementing the CSAPR Update rule.
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Specifically, the EPA is including in this final rule a 

method for ensuring that emissions in the CSAPR Update region do 

not exceed a specified level -- this is, emissions up to the sum 

of the states’ seasonal emissions budgets and variability limits 

-- as a result of the use of banked allowances. The method is 

captured in a formula or ratio, the numerator of which is the 

total number of banked allowances at the end of the 2016 ozone 

season and the denominator of which is 1.5 times the aggregated 

variability limits finalized in this rule. The ratio is then 

applied to the banked vintage 2015 and 2016 allowances in each 

account to yield the number of banked allowances available to 

each account holder in 2017.158

When proposing this approach, the EPA described how sources 

in states with new or updated budgets could use all of their 

banked allowances, but at a turn-in ratio significantly higher 

than one under which only one allowance would be used to cover 

each ton of emissions (e.g., a four-for-one or a two-for-one 

turn-in ratio). The EPA proposed to use turn-in ratios 

calculated using the proposed formula described above --

essentially the same formula that the EPA is including in this 

final rule. At proposal, the EPA explained that the ratio of the 

 

158 As discussed in section IX of the preamble, banked allowances held in 

compliance accounts for sources in Georgia will not be converted and will be 

excluded from the conversion ratio calculation.
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banked vintage 2015 and 2016 allowances to the aggregated ozone 

season variability limits was designed to limit the magnitude of 

the emission impact of sources’ use of banked allowances to that 

of the emissions level that would result from all states 

emitting up to the sum of their budgets and their variability 

limits for one or two years. (See 80 FR 75747.) The formulaic 

ratio when applied to the actual bank and emissions levels would 

yield a conversion factor for banked allowances that would be 

used to implement the proposed emissions limitation. 

The final approach described in this section -- a one-time 

conversion of aggregated banked vintage 2015 and 2016 allowances 

to 2017 vintage allowances equivalent to 1.5 years of the 

aggregated CSAPR Update variability limits -- is virtually 

identical to the approach we laid out in the NPRM. In 

particular, it is identical to the proposal in terms of the 

formula used to assess the number of banked allowances relative 

to the CSAPR Update variability limits. Further, the value for 

the principal input to this formula that the EPA is updating in 

this final rule -- the aggregated variability limits -- is very 

similar to the value for this input at proposal.159 The EPA has 

refined this approach to converting the banked allowances based 

 

159 At proposal, the aggregated variability limits totaled approximately 60,000 

tons and in the final rule the aggregated variability limits total 

approximately 65,000 tons.
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on comments we received that urged us to simplify 

implementation. The final approach limits the influence of 

banked allowances via a one-time conversion, which has the same 

impact on the allowance bank as an ongoing turn-in ratio, but 

provides simplified implementation of the CSAPR Update rule. 

Further, because the EPA will perform the conversion at one time 

and each allowance going forward will equate to one ton of 

emissions, the EPA does not find it necessary to finalize 

rounding the conversion ratio to the nearest whole number. 

The denominator in the conversion formula -– 1.5 times the 

states’ aggregated variability limits –- represents the number 

of banked allowances that will be available for use toward

compliance with the CSAPR Update. Under the CSAPR implementation 

framework, variability limits are established to allow the units 

in a state to emit above the state’s emission budget in a single 

control period when necessary because of year-to-year 

variability in power sector operations. The variability limits 

operate in conjunction with, but are distinct from, the state 

emission budgets. The purpose of the state emission budgets is 

to ensure that each state achieves necessary emission 

reductions, as required under CAA section 110(a)(2)(D)(i)(I). 

The purpose of the variability limits, and the assurance 

provisions that require additional allowances to be surrendered 
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when emissions from covered sources within a state exceed those 

limits, is to ensure that the requirement for each state to 

reduce emissions necessary to address its downwind air quality 

impacts is implemented in a manner consistent with normal yearto-year variability in power sector operations while keeping any 

emissions above the budget within acceptable limits.

In the proposal, the EPA requested comment on a range of 

turn-in ratios for banked allowances derived from the formula 

described previously, including a four-for-one ratio based on 

the sum of covered states’ variability limits for one year and a 

two-for-one ratio based on the sum of covered states’ 

variability limits for two years. Commenters expressed a wide 

range of views, from those advocating for no use of banked 

allowances to those advocating for the use of all banked 

allowances with no turn-in ratio, as well others advocating for 

turn-in ratios between these extremes. However, commenters 

generally did not address the specific topic of whether one, 

two, or a different number of years of variability limits would 

represent an appropriate quantity of banked allowances to allow 

to be used for compliance with the CSAPR Update. 

The EPA has determined that it is appropriate to use as the 

formula denominator the sum of covered states’ variability 

limits for 1.5 years. As noted above, the purpose of the 
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variability limits is to accommodate year-to-year variability in 

power sector operations at the state level. In theory, a bank 

based on the sum of all covered states’ variability limits would 

be sufficient to accommodate such variability for all states 

simultaneously –- in other words, the maximum amount of 

permissible emissions consistent with the purpose and design of 

the variability limits –- for one year. Because it is unlikely 

that normal year-to-year power sector variability would cause 

all states to need to exceed their emissions budgets in the same 

year, the EPA considers the sum of the states’ variability 

limits for one year a reasonable maximum for the number of 

allowances that would ever need to be used for compliance to 

address potential variability in power sector operations. 

However, the EPA’s experience with implementing market-based 

trading programs is that in historical practice most sources 

typically do not use every available allowance for compliance, 

but instead keep some in reserve in order to ensure compliance 

(e.g., to avoid penalties in the event of unforeseen emissions 

and/or problems with preliminary data calculations). The EPA 

believes that using the states’ variability limits for 1.5 years 

instead of one year provides sources with sufficient allowances 

to accommodate maximum year-to-year variability in power sector 

operations while also addressing the manner in which allowance 
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holdings are actually managed and used. Thus, the EPA believes 

that providing allowances equivalent to 1.5 years of covered 

states’ variability limits fulfills the primary purpose we 

described in our proposal –- limiting the use of banked 

allowances to no more than one year of states’ aggregated 

variability limits -- while acknowledging the historical

practice in market-based trading programs of sources keeping 

some allowances in reserve from year to year in order to provide 

planning and operating flexibility over multi-year periods. The 

EPA believes that this ratio provides an appropriate balance of 

these considerations, while providing a bank any larger would be 

inconsistent with the rule’s purpose of achieving emission 

reductions required by CAA section 110(a)(2)(D)(i)(I).

The numerator in the conversion formula is the number of 

banked allowances to be converted. At proposal, the EPA 

anticipated, based on 2014 emissions data, that there would be 

approximately 210,000 banked allowances following the 2015 and 

2016 ozone seasons. As commenters correctly predicted, based on 

more recent data, the size of the anticipated bank is now 

larger. Based on 2015 emissions data, the EPA anticipates that 

there will be approximately 350,000 banked allowances entering

the CSAPR NOX ozone season trading program by the start of the 
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2017 ozone season control period.160 As explained in more detail 

below, this anticipated total of banked allowances reflects the 

fact that the seasonal NOX emissions budgets established in CSAPR 

are to a significant extent not acting to constrain actual NOX

emission levels during the ozone season. Affected units overall 

are emitting less than their budgeted levels by a substantial 

margin and therefore do not have to use all of their allowances 

to comply with the requirements of CSAPR; as a result, the bank 

is growing substantially, especially relative to the emissions 

reductions that this rule is designed to achieve.

This amount of anticipated banked allowances is greater 

than the sum of all the state emission budgets established in 

this CSAPR Update and is roughly five times the total emission 

reduction potential that informs the emission budgets imposed by 

this rule. This number of anticipated banked allowances is also 

approximately five times larger than the aggregated CSAPR Update 

variability limits. Without imposing a limit on the transitioned

vintage 2015 and 2016 banked allowances, the number of banked 

allowances would increase the risk of emissions exceeding the 

CSAPR Update emission budgets or assurance levels and would be 

 

160 This allowance bank size was quantified as the observed allowance bank at 

the conclusion of 2015 plus an estimate of allowances likely to be banked in 

2016, assuming that 2016 emissions would be unchanged from 2015 levels. These 

data rely on 40 CFR Part 75 emission reporting and are available in the EPA’s

Air Markets Program Data, available at http://ampd.epa.gov/ampd/.
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large enough to let all affected sources emit up to the CSAPR 

Update assurance levels for five consecutive ozone seasons. 

In prior ozone season emissions trading programs, such as 

the Ozone Transport Commission’s NOX Budget Program and the NOX

Budget Trading Program implemented in conjunction with the NOX

SIP Call, allowance deduction provisions (in some cases known as 

“flow control”) were included in order to prevent banked 

allowances from being used in a single ozone season in 

quantities that would result in excess total emissions. 

Similarly under the CSAPR Update rule, the conversion ratio 

together with the assurance provisions will address the large 

size of the existing CSAPR bank with respect to the 2017 ozone 

season. 

Limiting the influence of the banked allowances is critical 

to achieving the goal of reducing ozone formation, because 

reduction in ozone depends on reductions in precursor emissions 

contemporaneous with the meteorological conditions conducive to 

the formation of ozone. Hence the rule is designed with ozone 

season-specific budgets intended to achieve emission reductions 

by the 2017 ozone season in order to assist downwind states with 

meeting the July 2018 Moderate area attainment date for the 2008 

ozone NAAQS. See North Carolina, 531 F.3d at 911-12 (instructing 

the EPA to coordinate upwind state emission reductions with 
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downwind attainment deadlines). Other Clean Air Act programs 

designed to address public health and environmental problems 

that result from cumulative emissions permit sources to comply 

by over-controlling emissions in earlier years and using the 

resulting banked reductions to offset emissions in later years. 

In contrast, states, and when acting to meet its FIP 

obligations, the EPA, must ensure that the goal of improved air 

quality will be achieved and can do so only if emissions are 

reduced to specified levels during each ozone season. 

This approach to limiting the influence of banked 

allowances also serves the goal of ensuring that emission 

reductions are achieved in each state. A bank of allowances that 

is five times the CSAPR Update variability limit would increase 

the risk of EGUs exceeding their states’ CSAPR assurance levels, 

and thereby impede the ability of the assurance provisions to 

meaningfully limit emissions in each state. These circumstances 

would undermine compliance with CAA section 110(a)(2)(D)(i)(I), 

which requires that “[e]ach state must eliminate its own 

significant contribution to downwind pollution.” North Carolina, 

531 F.3d at 921. The assurance provisions, as finalized in the 

original CSAPR rulemaking, were designed to address this 

requirement by imposing a penalty in the event that EGUs exceed 

the state assurance levels. 76 FR at 48294-98. If EGUs’ 
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incentive to constrain emissions is compromised by the 

availability of a large bank of allowances, the EPA could no 

longer ensure that appropriate state-level emissions reductions 

are achieved. 

While the bank of allowances reflects actions taken by 

sources in CSAPR to reduce emissions, it also reflects other 

factors unique to the regulatory history of CSAPR. In 

particular, the CSAPR budgets were established based on 

information available in 2010 and 2011. As promulgated in 2011, 

CSAPR required the budgets to be implemented in 2012 (Phase 1) 

and 2014 (Phase 2). As a result of litigation, the emissions 

budgets did not take effect until 2015. Between 2011 and 2015, 

the power sector responded to increases in natural gas supply, 

declines in natural gas prices, and increasing penetration of 

wind and other low- or zero-emitting renewable energy resources. 

Consequently, by the time the CSAPR ozone season budgets were 

implemented in the 2015 ozone season, they were no longer 

binding on state emission levels, even though they were 

anticipated to be binding when developed in 2011. The original 

CSAPR emission budgets for the 2015 ozone season were about 

628,000 tons in aggregate, but actual emissions were about 

451,000 tons, resulting in a substantial bank of allowances 

after the 2015 ozone season. In addition, based on emissions 
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data for May and June of 2016 (i.e., the first two months of the 

2016 ozone season under the trading program), ozone season NOX

emissions have declined 15 percent compared to the comparable 

period in 2015, which we anticipate will lead to a yet larger 

bank of allowances. In this final rule, the 2017 emission 

budgets plus the 21 percent variability limits total about 

381,000 tons in aggregate, compared to 2015 emissions from the 

relevant states of about 399,000 tons. The bank of CSAPR 

allowances fostered in part by the unique circumstances of 

CSAPR’s implementation is thus of a size that is so large 

relative to the budgets under this final CSAPR Update rule that, 

if all of the banked allowances were used without restriction, 

all states would exceed their emissions budgets for several 

successive ozone seasons. In that case, use of the bank would 

impede the achievement of the reductions needed to reduce ozone 

levels and assist downwind states with attainment and 

maintenance of the NAAQS by the 2017 ozone season. For these 

reasons, the implementation of the conversion ratio derived from 

the formula that is established in the final rule is necessary 

to limit the use of banked allowances and assure that reductions 

will actually occur and contribute to improved air quality in 

time to assist downwind states with meeting their attainment 

dates. 
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Some commenters objected to any limitation on the use of 

banked allowances, in part noting the additional compliance 

flexibility that banked allowances provide. But as explained 

above, without limitation, the number of banked allowances could 

undermine the capacity of the rule to achieve the emission 

reductions required by the good neighbor provision of the CAA –-

timely emission reductions in upwind areas that are necessary to 

avoid significant contribution to nonattainment or interference 

with maintenance of the 2008 ozone NAAQS in downwind areas. 

Specifically, the CSAPR Update establishes emission budgets that 

represent the remaining EGU emissions after reducing those 

amounts of each state’s emissions that significantly contribute 

to downwind nonattainment or interfere with maintenance of the 

2008 ozone NAAQS in downwind states, as required under CAA 

section 110(a)(2)(D)(i)(I). In other words, the CSAPR Update 

establishes an emission budget for each state that is its good 

neighbor obligation. If made available in its entirety for 

compliance with the CSAPR Update, then the anticipated 350,000 

banked allowances would inherently increase the risk of states 

exceeding their emission budget by providing a total number of 

allowances for compliance in 2017 that is more than double the 

22 state sum of emission budgets. The CSAPR allowance trading 

program already provides some flexibility in the form of the 
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CSAPR variability limits and corresponding assurance levels to 

allow states to meet their good neighbor obligation while 

respecting inherent variability in electricity generation. 

However, the anticipated 350,000 banked allowances, if fully 

available for compliance, would also increase the risk of EGUs 

exceeding their states’ CSAPR assurance level by providing

allowances for compliance greater than five times the CSAPR 

variability limit. These excess allowances could be used for 

compliance irrespective of the need to achieve the CAA good 

neighbor obligation while complying with typical year-to-year 

variability on which the assurance levels are based. The 

allowance bank would thereby further undermine the capacity of 

the rule to achieve the emission reductions required by the good 

neighbor provision of the CAA by increasing the risk that 

emissions would exceed not only the emission budgets, but also 

the assurance levels.

The EPA believes that allowing for banking of excess 

emission reductions is a positive element of a trading-based 

program such as this one. Banking encourages early reductions, 

provides certainty, and creates flexibility in order to achieve 

the public health goal more cost-effectively and reliably. When 

use of banked allowances can undermine the environmental goal 

rather than help to achieve it, however, it is reasonable and 
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appropriate to restructure the use of banked allowances. For 

these reasons, when the EPA finalized the original CSAPR 

provisions, the agency explicitly reserved its authority to 

eliminate or revise allowances issued in a given compliance 

year. The existing regulations for the current NOX ozone season 

trading program explain that an allowance is “a limited 

authorization to emit one ton of NOX during the control period in 

one year.” 40 CFR 97.506(c)(6). The regulations continue by

providing the Administrator the “authority to terminate or limit 

the use and duration of such authorization to the extent the 

Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act.” Id.

97.506(c)(6)(ii). The regulations also clearly state that such 

allowances do not constitute property rights. Id. 97.506(c)(7).

The EPA also notes that banked allowances were accrued against 

2015 and 2016 implementation of seasonal emission budgets that 

were established to address interstate emission transport for 

the 80 ppb 1997 ozone NAAQS. Banked compliance instruments with 

respect to the 1997 ozone NAAQS in 2015 or 2016 are not 

inherently interchangeable with emission reductions needed to 

address interstate emission transport for the 75 ppb 2008 ozone 

NAAQS starting in 2017. 
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However, provided that it can do so without jeopardizing 

the good neighbor objectives of the CSAPR Update rule, the EPA 

believes that permitting some allowances banked under the 

original CSAPR to be used to meet compliance with the CSAPR 

Update can facilitate compliance with the requirements of the 

latter. As described in section VI, the EPA is establishing 

emission budgets that it finds to be feasible for the 2017 ozone 

season. As a result, the EPA believes that it is feasible to 

implement the final CSAPR Update rule emission budgets that the 

EPA is promulgating in this action, even without availability of 

banked allowances for compliance. However, in order to ensure

implementation feasibility, the EPA is finalizing an approach 

that transitions a limited number of banked allowances into the 

CSAPR NOX ozone season Group 2 program for compliance starting 

with the 2017 ozone season. By providing for the use of some 

banked allowances for compliance with the CSAPR Update rule, the 

EPA provides immediate but limited compliance flexibility that 

will support the feasibility of meeting emission budgets for the 

2017 ozone season and variation in power sector operations. The 

CSAPR Update assurance level reflects the upper bound variation 

in power sector generation that the EPA would expect in any 

given year. Thus, the carryover of converted banked allowances 

equal to 1.5 years’ worth of variability limits provides the 
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affected fleet with the ability to accommodate potential 

variation from the mean in its load and emission patterns in the 

initial year of the program and also maintain a small reserve of 

allowances, while balancing the need to ensure that emissions 

are reduced, on average, to the level of the budgets and within 

the assurance levels in subsequent years. For a further 

discussion of additional implementation feasibility provided by 

this approach, see section VII.C. 

Considering these factors – especially the EPA’s obligation 

to achieve the NOX emission reductions needed to address 

transport with respect to the 2008 NAAQS – the EPA believes it 

is reasonable -– even required -- to restrict the number of

banked allowances carried over. 

To enable the use of banked 2015 and 2016 vintage 

allowances for compliance with the CSAPR Update, the EPA is 

finalizing a one-time conversion that transitions a number of 

allowances equivalent to 1.5 years of the sum of states’ CSAPR 

NOX ozone season Group 2 variability limits (the variability 

limits are 21 percent of the regional total emission budgets), 

or approximately 99,700 allowances. The one-time conversion of 

the 2015 and 2016 banked allowances will be made using a 

calculated ratio, or equation, to be applied in early 2017 once 

compliance reconciliation (or “true-up”) for the 2016 ozone 
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season program is completed. The EPA will use an equation to 

derive the ratio by dividing the number of all 2015 and 2016 

post-true-up banked CSAPR NOX ozone season allowances being 

converted by 1.5 times the sum of the 2017 CSAPR Update 

variability limits quantified in Table VII.C-2 in this preamble. 

As soon as practicable and not later than March 1, 2018, which 

is the compliance deadline for the 2017 control period, and 

pending notification of all allowance holders, the EPA will 

freeze allowance accounts and convert the original CSAPR NOX

ozone season 2015 and 2016 banked allowances to the 2017 vintage 

CSAPR Update rule NOX ozone season Group 2 allowances. These 

allowances may then be used in 2017 and thereafter on a 1-to-1 

(one allowance to one ton of ozone season emissions) basis for 

compliance in Group 2 states. 

Dividing the bank by 1.5 times the collective variability 

limits results in the ratio that the EPA will apply to convert 

each source’s banked 2015 and 2016 original CSAPR NOX ozone 

season allowances to 2017 CSAPR Update rule NOX ozone season 

Group 2 allowances. The resulting post-conversion bank will be 

equivalent to 1.5 times the sum of states’ CSAPR NOX ozone season 

Group 2 variability limits, or approximately 99,700 allowances. 

Based on current data, the EPA notes that this conversion ratio

would be approximately 3.5 to 1, but the ratio could be lower or 
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higher depending on 2016 emissions. By instituting the one-time 

conversion of banked 2015 and 2016 allowances, the EPA is 

limiting the use of such allowances for purposes of assuring 

that emission reductions necessary to address interstate 

transport with respect to the 2008 ozone standard are achieved.

As of the conversion date (see 40 CFR 97.526(c)(1)), the

EPA will convert all 2015 and 2016 allowances held in any 

account, other than a Georgia source’s compliance account, to 

Group 2 allowances. This includes banked 2015 and 2016 

allowances held in accounts in non-CSAPR Update states (i.e., 

Florida, North Carolina, and South Carolina). The ratio will be 

determined by dividing the number of allowances held in all such 

accounts (i.e., every general account and every compliance 

account except for a compliance account for a Georgia source) by 

1.5 times the sum of the variability limits for all states other 

than Georgia. Starting with the 2017 ozone season control 

period, only CSAPR NOX ozone season Group 2 allowances can be 

used for compliance with the CSAPR Update rule ozone season 

program. Any remaining CSAPR NOX ozone season 2015 and 2016 

allowances that are not converted to Group 2 allowances may only 

be used for compliance by affected sources in states that are 

subject to the original CSAPR ozone season program to meet 
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obligations for the 1997 ozone NAAQS (the only such state is 

Georgia). 

A source in the state of Georgia that chooses to have some 

or all of its banked 2015 and 2016 allowances converted to Group 

2 allowances may move any of its 2015 and 2016 banked allowances 

out of a compliance account and into a general account. These 

allowances in the general account will then be subject to 

conversion to Group 2 allowances. 

The EPA proposed and took comment on a range of options for 

how to treat the use of banked 2015 and 2016 CSAPR NOX ozone 

season allowances by EGUs in the 22 CSAPR Update states. As 

described previously, the EPA proposed that sources in states 

with new or updated budgets could use all of their banked 

allowances, but at a ratio significantly higher than one 

allowance to cover each ton (e.g., at a four-for-one turn-in 

ratio). Additionally, the proposed CSAPR Update solicited 

comment on less and more restrictive approaches to address use 

of the CSAPR EGU NOX ozone allowance bank. Specifically, the EPA 

sought comment on: (1) allowing banked 2015 and 2016 CSAPR NOX

ozone allowances to be used for compliance with the CSAPR Update 

for the 2008 ozone NAAQS starting in 2017 at a one-for-one

ratio, or (2) completely disallowing the use of banked 2015 and 

2016 CSAPR NOX ozone allowances for compliance with the CSAPR 
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Update for the 2008 ozone NAAQS starting in 2017. The EPA also 

solicited comment on whether and how the assurance provision 

penalty might be increased, in conjunction with any of the above 

approaches, to address the relationship of the allowance bank to 

emissions occurring under this revised program from 2017 onward. 

At this time, the EPA is not changing the assurance provision 

penalty or its application.

Comment: Some commenters suggested that implementation by 

way of ongoing turn-in ratios would be cumbersome and 

complicated because it requires affected EGUs to hold allowances 

for compliance that are equivalent to differing ratios of tons 

of emissions. 

Response: The EPA agrees with the commenters who observed 

that an allowance trading program in which a CSAPR NOX ozone 

season allowance issued in 2017 and thereafter would be worth 

one ton of emissions while a CSAPR NOX ozone season allowance 

issued in 2015 or 2016 would be worth less than one ton of 

emissions is overly complex. These differing emission 

equivalents of otherwise similar compliance tools (i.e., 

allowances) would add a layer of complexity to ongoing 

compliance demonstrations. Implementing a ratio by way of a onetime conversion, instead, has the same impact on emission 

reductions as an ongoing turn-in ratio in that the emissions 
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equivalent of the banked allowances will be reduced consistent 

with the ratio, but the implementation of the ratio through a 

one-time conversion simplifies implementation of the CSAPR 

Update rule, which supports efficient and accurate compliance 

planning. 

Comment: Some commenters requested that the EPA not limit 

the use of banked vintage 2015 and 2016 CSAPR NOX ozone season 

allowances in the final CSAPR Update, suggesting that the EPA 

had not demonstrated that use of these allowances would 

undermine the goals of the CSAPR Update. These commenters 

suggested that the assurance levels are adequately protective of 

the CSAPR Update emission reduction requirements.

Response: The EPA disagrees with these comments. As 

discussed previously, the EPA anticipates a large number of 

banked allowances entering the 2017 CSAPR ozone season control

period. Allowing unlimited use of this magnitude of vintage 2015 

and 2016 CSAPR NOX ozone season allowances in the 2017 control

period and going forward would put the emission reduction 

requirements of the CSAPR Update rule in jeopardy and undermine 

the realization of the emission reductions needed under the good 

neighbor provisions of the CAA to avoid significant contribution 

to nonattainment and interference with maintenance of the 2008 

ozone NAAQS in downwind areas. 
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Comment: Some commenters recommended that the EPA 

completely disallow the use of banked 2015 and 2016 CSAPR NOX

ozone allowances for compliance with the CSAPR Update for the 

2008 ozone NAAQS starting in 2017.

Response: A key feature of allowance trading programs is 

that they provide sources an economically efficient strategy for 

integrating current and future compliance. Banking of allowances 

for later use also creates incentives to make early emission 

reductions, which often result in improved air quality earlier 

than otherwise required. The EPA has seen early reductions and 

banking in implementing other trading programs over the past 20 

years, such as the Acid Rain Program and the NOX SIP Call. The 

EPA believes such an economic incentive, and the associated

environmental benefits, is conditioned on the expectation that 

the resulting banked allowances will have some value in the 

future of that program. The approach that the EPA is finalizing 

provides a means for the existing 2015 and 2016 CSAPR NOX ozone 

season allowances to retain some value, while appropriately 

mitigating the potential adverse impact of the allowance bank on 

the emission-reducing actions needed from affected EGUs in 

states with obligations to address interstate transport for the 

2008 ozone NAAQS.
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Comment: Commenters contend that discounting allowances by 

a turn-in ratio essentially penalizes sources for early action.

Response: Commenters did not provide quantitative analysis 

that the turn-in ratio would reduce the overall economic value 

of the allowance holdings nor even address the question of 

whether or how the diminution of the number of allowances

available would affect the value of each individual allowance or 

that of the overall bank – especially in view of the fact that 

the NOX emissions budgets are more constraining. Because the 

allowance bank value is a product of both allowance quantity and 

allowance price, the conclusion that any reduction in quantity 

inherently reduces the bank value is flawed because it ignores 

the likely increase in price. Similarly, it merits noting the 

high likelihood that some portion of the banked allowance price 

reflects larger dynamics in the power markets, such as lower 

natural gas prices in recent years, as opposed to explicit early 

actions.

D. Feasibility of Compliance

In practice, the EGU emission budgets that the EPA is 

finalizing in this action are achievable for each of the 22

states through operating and optimizing existing SCR controls, 

operating existing SNCR controls, installing state-of-the-art 

combustion controls, shifting generation to lower NOX–emitting or 
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non-emitting units, using allowances that the EPA has allocated 

to EGUs (including banked allowances), or obtaining allowances 

on the allowance market. The EPA believes that this rule 

provides sufficient lead time to comply with the 2017 ozone 

season requirements.161

To further examine the compliance feasibility of the state 

NOX ozone season budgets, the EPA performed an analysis of statelevel achievable NOX ozone season emissions for 2017 that is 

independent of the IPM-based assessment used to establish the 

emission budgets. This analysis relied on the most recent ozone 

season data for 2015. For the covered states, these data were 

adjusted to account for announced retirements, announced new SCR 

at existing units, and announced coal-to-gas conversions at 

existing units.162 The EPA then applied certain control 

assumptions directly to the reported unit-level data. 

Specifically, this analysis applied EGU NOX reductions for 

turning on idled SCR, optimizing all SCR to historically 

 

161 As described in Section VI, the EPA is finalizing for Arkansas a 2017 ozone 

season emission budget that does not account for EGU NOX reduction potential 

from combustion controls and a 2018 ozone season emission budget for Arkansas 

that does account for EGU NOX reduction potential from combustion controls. 

This approach provides utilities an extra year to upgrade combustion controls 

in the event that this is their chosen CSAPR Update compliance path. This 

extra year allows for upgrades to be made across 4 shoulder seasons (fall

2016, spring 2017, fall 2017, and spring 2018).

162 These adjustments are performed in the same way as the adjusted historic 

emissions described in section VI.
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demonstrated NOX emission rates, installing state-of-the-art 

combustion controls, and turning on idled SNCR. 

The EPA evaluated the feasibility of turning on idled SCRs 

for the 2017 ozone season. Based on past practice, the EPA finds 

that idled controls can be restored to operation in no more than 

a few months. This timeframe is informed by many electric 

utilities’ previous, long-standing practice of utilizing SCRs to 

reduce EGU NOX emissions during the ozone season while putting 

the systems into protective lay-up during non-ozone season 

months. For example, this was the long-standing practice of many 

EGUs that used SCR systems for compliance with the NOX Budget 

Trading Program. It was quite typical for SCRs to be turned off 

following the September 30 end of the ozone season control 

period. These controls would then be put in protective lay-up 

for several months of non-use before being returned to operation 

by May 1 of the following ozone season. In the 22 state CSAPR 

Update region, 2005 EGU NOX emission data suggest that 125 EGUs 

operated SCR systems in the summer ozone season while idling 

these controls for the remaining seven non-ozone season months 

of the year.163 Based on EGUs’ past experience and the frequency 

of this practice, the EPA finds that idled SCRs can be restored 

 
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to operation in no more than a few months. Further, because 

turning on idled SCRs requires inherently more steps than fully 

operating existing operating SCR or turning on idled SNCR, the 

EPA finds that these additional EGU NOX reduction strategies are 

also feasible within a few months. The lead-time for compliance 

with this rule is longer than this timeframe. More details on 

these analyses can be found in the EGU NOX Mitigation Strategies 

Final Rule TSD.

The EPA also finds that, generally,164 state-of-the-art 

combustion controls require a short installation time –

typically, four weeks to install along with a scheduled outage 

(with order placement, fabrication, and delivery occurring 

beforehand). Feasibility of installing combustion controls was

examined by the EPA in the original CSAPR where industry 

demonstrated the ability to install LNB controls on a large unit 

(800 MW) in under six months. More details on these analyses can 

be found in the EGU NOX Mitigation Strategies Final Rule TSD.

As described in section VI, to establish emission budgets,

the EPA made a data-informed assumption with respect to the 

reasonable achievable SCR NOX rate (0.10 lbs/mmBtu) for units 

 

164 This is true with one exception. The EPA finds that for Arkansas it is 

reasonable to delay EGU NOX reduction potential for certain new combustion 

controls until 2018 and therefore gives Arkansas a 2017 budget that does not 

reflect these controls and a 2018 budget that does reflect these controls.

This issue is discussed further in Section VI.
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that are not operating SCR optimally. In order to independently 

evaluate whether emission budgets that rely on this assumption 

are achievable, the EPA used actual SCR rates for existing units 

that reflect demonstrated unit-level achievable SCR performance. 

Specifically, the EPA used the lower of 2015 NOX rates (the most 

recent demonstrated achievable SCR NOX rate) and each unit’s 

third lowest historical ozone season NOX rate. This approach 

reflects SCR units operating in a manner consistent with 

demonstrated SCR performance capability at each unit. This 

analysis does not account for further EGU NOX reduction potential 

from shifting generation to lower NOX–emitting or non-emitting 

units. As discussed in section VI and further in the EGU NOX

Mitigation Strategies Final Rule TSD, the EPA believes shifting 

generation to lower NOX-emitting or non-emitting units is 

feasible to implement for the 2017 ozone season but the agency 

has not developed an approach to assess generation shifting that 

is independent of the IPM-based assessment discussed previously.

The EPA’s analysis showed that, with known fleet changes 

and accounting for NOX reduction potential from SCR, SNCR, and 

combustion controls, all CSAPR Update rule states would be at or 

below their 2017 CSAPR Update rule assurance level while 

continuing to otherwise operate consistent with 2015 behavior. 

The analysis showed that, with known changes occurring prior to 
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2017, optimizing SCR and SNCR, and installing combustion 

controls, the 22 states would lower their emissions to 

approximately 320,000 tons – only 2 percent above their 

aggregated CSAPR Update rule budgets, and each state would be 

below its assurance level. Moreover, this analysis does not 

reflect the NOX reduction potential from generation shifting that 

is also available for compliance planning. The state-level 

summary of this 2017 analysis is provided in Table VII.D-1. For 

further discussion of implementation feasibility, see the EGU NOX

Mitigation Strategies Final Rule TSD.165

Table VII.D-1. Final 2017 EGU NOX Ozone Season Emission Budgets, 

Assurance Level, and Compliance Feasibility Analysis (tons)

State Final 2017* 

EGU NOX

Emission 

Budgets

Final 2017 EGU 

NOX Assurance 

Level

Compliance 

Feasibility 

Analysis

Alabama 13,211 15,985 13,673

Arkansas 12,048 14,578 8,362

Illinois 14,601 17,667 13,892

Indiana 23,303 28,197 25,325

Iowa 11,272 13,639 11,070

Kansas 8,027 9,713 7,845

Kentucky 21,115 25,549 21,269

Louisiana 18,639 22,553 18,250

Maryland 3,828 4,632 3,815

Michigan 17,023 20,598 17,960

Mississippi 6,315 7,641 6,296

Missouri 15,780 19,094 16,326

New Jersey 2,062 2,495 2,048

New York 5,135 6,213 5,406

Ohio 19,522 23,622 16,481

Oklahoma 11,641 14,086 13,039

 

165 The EPA notes that a state can instead require non-EGU NOX emission 

reductions through a SIP, if they choose to do so.
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Pennsylvania 17,952 21,722 17,262

Tennessee 7,736 9,361 6,569

Texas 52,301 63,284 52,647

Virginia 9,223 11,160 8,670

West Virginia 17,815 21,556 12,236

Wisconsin 7,915 9,577 7,813

22 State Region 316,464 306,252

*The EPA is finalizing CSAPR EGU NOX ozone season emission 

budgets for Arkansas of 12,048 tons for 2017 and 9,210 tons for 

2018 and subsequent control periods.

The allowance trading program used to implement the 

emission reductions in this rulemaking further promotes 

compliance feasibility. With this approach, an individual source 

has the flexibility to forgo any physical changes to its 

combustion or post-combustion process and simply acquire 

allowances from another source for compliance. Therefore, any 

unit-specific limitations in regard to permitting, installing, 

and/or modifying controls or other elements of plant operation 

do not jeopardize compliance, as the sources have alternative 

compliance options.166 Allowance markets are well established, 

liquid, and will carry a number of already available banked 

allowances. Regarding market liquidity, the EPA observes that as 

of August 15, 2016 (part way through the second CSAPR NOX ozone 

season compliance period) more than 1,200 private transfers have 

 

166 The EPA does not anticipate that restarting an existing and permitted idled 

post-combustion NOX control device would trigger any new permitting 

requirements.
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taken place involving more than 260,000 CSAPR NOX ozone season 

allowances.167 In particular, the combined flexibility of a bank 

and a liquid market ensures that any unit with unique 

circumstances regarding its control configuration can continue 

to operate in its current fashion. Trading flexibility further 

enhances system reliability because affected units may cover 

emissions from any reliability-relevant operations with 

allowances available in the marketplace. 

Stakeholders have a history and familiarity with trading 

programs. Congress has enacted, and the EPA has promulgated, 

many rules that allow EGUs and other sources to meet their 

emission limits by trading allowances with other sources. In a 

trading program, the EPA authorizes a source to meet its 

emission limit by purchasing emission allowances generated from 

other sources, typically ones that implement or enhance their 

pollution control devices to reduce emissions to the point where 

they are able to sell allowances. As a result, the availability 

of trading reduces overall costs to the industry by using the 

marketplace to incentivize particular sources that have the 

lowest control costs to implement and operate pollution 

controls. 

 

167 Allowance transaction data are available in EPA’s Air Markets Program Data, 

at http://ampd.epa.gov/ampd/.
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The combination of control optimization feasibility, recent 

trends in emission reductions, on-the-way emission reductions, 

allowance trading, a pre-existing bank, and assurance levels 

support the feasibility of the CSAPR Update rule 2017 emission 

budgets finalized in this action.

Further supporting the feasibility of this rule’s 

compliance obligation is the trend in recent emission 

reductions. While 2014 ozone season NOX emissions for the 22 

covered states were approximately 466,000 tons, they dropped by 

14 percent in 2015 to 400,000. Moreover, the 2016 ozone season 

emissions are anticipated to be approximately 380,000 tons. This 

pace of reduction illustrates the speed and adaptability in the 

fleet’s response to market conditions. It shows a trend in 

emission reductions that is consistent with the level of 

reductions anticipated by the CSAPR Update rule budgets. 

Comment: The EPA received comment highlighting the 

significant drop in the CSAPR Update rule budgets for 2017 

relative to the CSAPR phase 1 and phase 2 budgets finalized in 

the original CSAPR rulemaking to address the 1997 ozone 

standard. Some commenters asserted this significant percent 

difference between the two illustrated a feasibility concern.

Response: The EPA views a comparison of the original CSAPR 

phase 1 and 2 budgets as a poor metric for assessing feasibility 
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of sources’ compliance with the budgets being finalized in the 

CSAPR Update rule. As noted previously, states are already well 

below their current CSAPR budgets: reported 2015 emissions for 

the 21 states subject to the NOX ozone season trading program 

pursuant to both the original CSAPR rulemaking and the CSAPR 

Update rule total 390,000 tons in aggregate. For these 21 

states, CSAPR phase 1 budgets aggregate to 535,000 tons and 

phase 2 budgets aggregate to 502,000 tons. Thus, aggregate 2015 

emissions from these states are already more than 100,000 tons 

below the original CSAPR budgets. Based upon the first two 

quarters of emissions data, 2016 emissions are anticipated to be 

even lower. These actual emissions make a more appropriate 

assessment of what emission reductions are feasible for the 2017 

ozone season. Moreover, CSAPR Update rule states have limited 

flexibility to exceed the emission budgets if needed for 

compliance feasibility by using banked allowances. 

E. FIP Requirements and Key Elements of the CSAPR Trading 

Programs

The original CSAPR established a NOX ozone season allowance

trading program that allows affected sources within each state 

to use allowances from other sources within the same trading 

group for compliance, pursuant to certain monitoring 

requirements as codified in 40 CFR part 75. In the CSAPR NOX
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ozone season trading program, sources are required to hold one 

CSAPR ozone season allowance for each ton of NOX emitted during 

the ozone season. The EPA is utilizing that same regional 

trading approach, with updated emission budgets, trading groups,

and certain additional revisions described later on, as the 

compliance remedy implemented through the FIPs to address 

interstate transport for the 2008 ozone NAAQS. The EPA is using

the existing NOX ozone season allowance trading system that was 

established under CSAPR in 40 CFR Part 97, Subpart BBBBB for 

Group 1, and as promulgated in Subpart EEEEE for Group 2, to 

implement the emission reductions identified and quantified in 

the FIPs for this action. 

1. Applicability 

In this rule, the EPA is finalizing the same applicability 

provisions as the original CSAPR, without change. Under the 

general CSAPR applicability provisions, a covered unit is any 

stationary fossil-fuel-fired boiler or combustion turbine 

serving at any time on or after January 1, 2005, a generator 

with nameplate capacity exceeding 25 MW, which is producing 

electricity for sale, with the exception of certain cogeneration 

units and solid waste incineration units. See 76 FR 48273

(August 8, 2011), for a discussion on applicability in the final 

CSAPR rule. The EPA is finalizing the same applicability 
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provisions as the original CSAPR for the CSAPR Update rule NOX

ozone season trading program Groups 1 and 2. See 40 CFR 97.504 

and 40 CFR 97.804. The EPA is codifying these provisions as 

described in section IX.

2. State Budgets

The EPA is promulgating CSAPR NOX ozone season emission 

budgets, as provided in table VII.E-1 in this preamble and in 40 

CFR section 97.810, for the 22 states in this final rule.168 This 

includes the NOX ozone season emission budgets, new unit setasides, and Indian country new unit set-asides for 2017 and 

beyond.

The EPA is establishing new or revised CSAPR NOX ozone 

season emission budgets for the 22 eastern states subject to 

FIPs in this final rule to address interstate transport for the 

2008 ozone NAAQS. For the 21 of these 22 states that are 

currently covered by the original CSAPR ozone season program, 

the requirement to comply with the budgets established to 

address the 2008 ozone NAAQS will replace the current 

requirement to comply with the budgets established to address 

 

168 The 22 states are: Alabama, Arkansas, Illinois, Indiana, Iowa, Kansas, 

Kentucky, Louisiana, Maryland, Michigan, Mississippi, Missouri, New Jersey, 

New York, Ohio, Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, West 

Virginia, and Wisconsin.
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the 1997 ozone NAAQS.169 For Kansas, which is newly brought into 

the CSAPR NOX ozone season program, the EPA is finalizing a new

EGU NOX ozone season emission budget designed to address 

interstate transport for the 2008 ozone standard.

The EPA is implementing the emission budgets finalized in 

this rule by allocating allowances to sources in those states 

equal to the budgets for compliance starting in 2017. The EPA is 

finalizing allowance allocations for existing units for CSAPR NOX

ozone season Group 2 states through this rulemaking. Portions of 

the state budgets will be set aside for new units, and the EPA 

will use the processes set forth in the CSAPR regulations to 

annually allocate allowances to the new units in each state from 

the new unit set-asides.

3. Allocations of Emission Allowances

For states participating in the CSAPR NOX ozone season Group 

2 program, the EPA will issue CSAPR NOX ozone season Group 2 

 

169 As discussed in section IV.C, Iowa, Maryland, Michigan, New Jersey, New 

York, Ohio, Oklahoma, Pennsylvania, Texas, Virginia, West Virginia, and 

Wisconsin will no longer be subject to an obligation to reduce emissions to 

address the 1997 ozone NAAQS after 2016, so for these states the requirement 

to comply with the budgets established under this rule will succeed the 

current requirement to comply with the budgets established to address the 

1997 ozone NAAQS. Alabama, Arkansas, Illinois, Indiana, Kentucky, Louisiana, 

Mississippi, Missouri, and Tennessee remain subject to an obligation to 

reduce emissions to address the 1997 ozone NAAQS, but because the budgets 

established in this rule are established with regard to the more stringent

2008 ozone NAAQS, the EPA is coordinating compliance requirements and 

allowing compliance with the budgets established under this rule to serve the 

purposes of meeting these states’ interstate transport obligations with 

regard to both the 1997 ozone NAAQS and the 2008 ozone NAAQS.
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allowances to be used for compliance starting with the 2017 

ozone season. This section explains that, for most states, the 

EPA is allocating these allowances up to each state’s budget to 

existing units and new units in that state by applying the same 

allocation methodology finalized in the original CSAPR. This 

methodology considers both a unit’s historical heat input and 

its maximum historical emissions. See 76 FR 48284, August 8, 

2011. A different approach is taken for Alabama, Missouri, and 

New York, as described later on. This section also describes 

allocation to the new unit set-asides and Indian country new 

unit set-asides in each state; allocation to units that are not 

operating; and the recordation of allowance allocations in 

source compliance accounts.

a. Allocations to existing units. The EPA will implement each 

state’s EGU NOX ozone season emission budget in the CSAPR NOX

ozone season Group 2 trading program by allocating the number of 

emission allowances to covered units170 within that state equal 

to the tonnage of that specific state’s budget, as calculated in 

section VI. See Table VI.E-2. The portion of a state budget 

allocated to existing units in that state is the state budget 

minus the state’s new unit set-aside and minus the state’s

 

170 As described previously in applicability criteria. 
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Indian country new unit set-aside. The new unit set-asides are 

portions of each budget reserved for new units that might locate 

in each state or in Indian country in the future. For the 

existing source level allocations, see the TSD called, “Unit 

Level Allocations and Underlying Data for the CSAPR for the 2008 

Ozone NAAQS,” in the docket for this rulemaking. The only 

allowance allocations that are being updated in this final rule

are allocations of NOX ozone season allowances under the CSAPR 

NOX ozone season Group 2 program. This final rule does not change 

allowance allocations for the CSAPR NOX ozone season Group 1 

trading program or allocations of CSAPR SO2 or NOX annual 

allowances. 

For the purpose of allocations, the original CSAPR 

regulations defined an “existing unit” as one that commenced 

commercial operation prior to January 1, 2010. For the 22 states 

subject to FIPs in this rulemaking, the EPA is modifying the 

definition of an “existing unit” for purposes of the NOX ozone

season Group 2 program to include those units that commenced 

commercial operation prior to January 1, 2015. This change will 

allow these units to be directly allocated allowances from each 

state’s budget as existing units and will allow the new unit 

set-asides to be fully reserved for any future new units 

locating in covered states or Indian country. The EPA did not 
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propose, and is not finalizing, any change in the definition of

“existing units” for sources located in states subject to the 

original CSAPR regulations (i.e., sources located in Georgia 

with respect to allocation of the CSAPR NOX ozone season Group 1 

allowances, and sources located in all covered states with 

respect to allocations of CSAPR SO2 or NOX annual allowances).

The EPA proposed to apply the methodology finalized in the 

original CSAPR for allocating emission allowances to existing 

units. This methodology allocates allowances to each unit based 

on the unit’s share of the state’s heat input, limited by the 

unit’s maximum historical emissions. As discussed in the 

original CSAPR final rule (See 76 FR 48288-9, August 8, 2011), 

the EPA finds this allowance allocation approach to be fuelneutral, control-neutral, transparent, based on reliable data, 

and similar to allocation methodologies previously used in the 

NOX SIP Call and Acid Rain Program. The EPA is therefore

finalizing the continued application of this methodology for 

allocating allowances to existing sources in this final rule

(except as otherwise noted later on with respect to existing 

sources in Alabama, Missouri, and New York). 

This final rule uses the average of the three highest years 

of heat input data out of a consecutive five-year period to 

establish the heat input baseline for each unit. These heat 
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input data are used to calculate each unit’s proportion of 

state-level heat input (the unit’s three year average heat input 

divided by the state’s average heat input). As a first step, the 

EPA applies this proportion to the total amount of existing unit 

allowances to be allocated to quantify unit-level allocations. 

However, the EPA constrains the unit-level allocations so as not 

to exceed the maximum historical baseline emissions, calculated 

as the highest year of emissions out of a consecutive eight-year 

period.171 The proposal evaluated 2010-2014 heat input data and 

2007-2014 emissions data, which was the most recent data 

available at that time. The final rule relies on 2011-2015 heat 

input data and 2008-2015 emission data, which is currently the 

most recent complete dataset.172

For the states of Alabama, Missouri, and New York, the EPA 

is not applying the methodology described previously. Instead, 

for these states only, the EPA is allocating allowances to

existing units in the state according to methodologies for 

allocating ozone season NOX allowances under the current CSAPR 

NOX Ozone Season Trading Program that have been adopted into 

 

171 The EPA’s allocation methodology also considers whether unit-level 

allocations should be limited because they would otherwise exceed emission 

levels that are permissible under the terms of consent decrees. However, in 

this instance the EPA’s analysis indicates that consideration of consent 

decree limits does not alter the unit-level allocations. 

172 See the CSAPR Allowance Allocations Final Rule TSD for further description 

of the allocation methodology
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state regulations and submitted to the EPA for approval as SIP 

revisions, but with the states’ methodologies applied to the 

final budgets established in this rule. This approach is 

consistent with the proposal, in which the EPA indicated that 

where a state had adopted state regulations to govern the 

allocation of allowances under the current CSAPR NOX ozone season 

program and had included those regulations in an approved SIP 

revision, if the state regulations by their terms would govern 

allocations under a revised budget, or if it was clear how the 

state’s approved methodology could be used by the EPA to compute 

allocations using the revised budget, the state’s regulations or 

methodology would be used to govern the allowance allocations 

under the final rule. These three states have adopted state 

regulations regarding the allocation of CSAPR allowances for 

ozone season NOX emissions and have made SIP submittals seeking 

incorporation of the regulations into their SIPs. Although the 

EPA has not acted on those SIP submittals (because they concern 

the current NOX ozone season trading program to which the sources 

in these three states will no longer be subject after 2016), the 

EPA has determined that it is clear how the allocation 

methodologies reflected in the state-adopted regulations can be 

used to compute allocations under the final budgets for this 

rule. The EPA took comment in the proposal on this topic. As 
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explained in the proposal, these possible approaches could avert 

the need for a state to submit another SIP revision to implement 

the same allocation provisions under this rule that the state 

has already implemented or sought to implement under CSAPR 

before adoption of this rule. Since the agency received no 

adverse comments on using this modified allocation approach for 

states with an EPA-approved SIP revision under the current rule, 

the EPA is finalizing this approach for these three states.173

Further discussion of how these three states’ methodologies were 

used to determine the allocations of allowances to existing 

units in the states is included in the CSAPR Allowance 

Allocations Final Rule TSD.

As discussed later on, states have several options under 

CSAPR to submit SIP revisions which, if approved, may result in 

the replacement of the EPA’s default allocations with statedetermined allocations for control periods in 2018 or later 

years. The provisions described previously will not preclude any 

state from submitting an alternative allocation methodology for 

later compliance years through a SIP revision. See section VII.F 

for further details on the development of approvable SIP 

submissions.

 

173 In the case of Missouri, the allocations also reflect the state’s comments 

regarding the use of the state’s methodology to establish the allocations.
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b. Allocations to new units. Consistent with the revision to the 

definition of “existing unit” described earlier, for purposes of 

the final rule a “new unit” that is eligible to receive 

allocations from the “new unit set-aside” for a state includes 

any covered unit that commences commercial operation on or after 

January 1, 2015, as well as a unit that becomes covered by 

meeting applicability criteria subsequent to January 1, 2015; a 

unit that relocates to a different state covered by a FIP

promulgated by this final rule; and an “existing” covered unit 

that stops operating for two consecutive years but resumes 

commercial operation at some point thereafter. To the extent 

that states seek approval of SIPs with different allocation 

provisions than those provided by CSAPR, these SIPs may also 

define new units differently. 

The EPA is also finalizing allocations to a new unit setaside (NUSA) for each state equal to a minimum of 2 percent of 

the total state budget, plus the projected amount of emissions 

from planned units in that state. For instance, if planned units 

in a state are projected to emit 3 percent of the state’s NOX 

ozone season emission budget, then the new unit set-aside for 

the state would be set at 5 percent, the sum of the minimum 2 

percent set-aside plus an additional 3 percent for planned 

units. This is the same approach currently used to implement the 
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NUSA for all CSAPR trading programs. See 76 FR 48292. Pursuant 

to the CSAPR regulations, new units may receive allocations 

starting with the first year they are subject to the allowanceholding requirements of the rule. If the allowances in the NUSA 

remain unallocated to new units, the allowances from the setasides are redistributed to existing units before each 

compliance deadline. For more detail on the CSAPR new unit setaside provisions, see 40 CFR 97.811(b) and 97.812.

Table VII.E-1. Final EGU NOX Ozone Season New unit Set-aside 

Amounts, Reflecting Final EGU Emission Budgets (tons)

State Final 2017* EGU 

NOX Emission 

Budgets (tons)

New unit 

set-aside 

amount 

(percent)

New unit setaside amount 

(tons)1

Indian 

country 

new unit 

set-aside 

amount 

(tons)

Alabama 13,211 2 255 13

Arkansas* 12,048 / 9,210 2/2 240/185

Illinois 14,601 2 302

Indiana 23,303 2 468

Iowa 11,272 3 324 11

Kansas 8,027 2 148 8

Kentucky 21,115 2 426

Louisiana 18,639 2 352 19

Maryland 3,828 4 152

Michigan 17,023 4 665 17

Mississippi 6,315 2 120 6

Missouri 15,780 2 324

New Jersey 2,062 9 192

New York 5,135 5 252 5

Ohio 19,522 2 401

Oklahoma 11,641 2 221 12

Pennsylvania 17,952 3 541

Tennessee 7,736 2 156

Texas 52,301 2 998 52

Virginia 9,223 6 562
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West Virginia 17,815 2 356

Wisconsin 7,915 2 151 8

22 State 

Region 316,464 / 313,626

1 New-unit set-aside amount (tons) does not include the Indian country 

new unit set-aside amount (tons).

*The EPA is finalizing CSAPR EGU NOX ozone season emission budgets for 

Arkansas of 12,048 tons for 2017 and 9,210 tons for 2018 and 

subsequent control periods.

c. Allocations to new units in Indian Country. Clean Air 

Act programs on Indian reservations and other areas of Indian 

country over which a tribe or the EPA has demonstrated that a 

tribe has jurisdiction are implemented either by a tribe through 

an EPA-approved tribal implementation plan (TIP) or the EPA 

through a FIP. Tribes may, but are not required to, submit TIPs. 

Under the EPA’s Tribal Authority Rule (TAR), 40 CFR 49.1 –

49.11, the EPA is authorized to promulgate FIPs for Indian 

country as necessary or appropriate to protect air quality if a 

tribe does not submit and get EPA approval of a TIP. See 40 CFR 

49.11(a); see also 42 U.S.C. 7601(d)(4). To date, no tribes have 

sought approval of a TIP implementing the good neighbor 

provision at CAA section 110(a)(2)(D)(i)(I) with respect to the 

2008 ozone NAAQS. The EPA has therefore determined that it is 

necessary and appropriate for EPA to implement the FIPs in any 

affected Indian reservations or other areas of Indian country 

over which a tribe has jurisdiction. There are no existing units
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that would qualify as “covered units” under the final CSAPR 

Update in Indian country located in the states covered by this 

rule.

The EPA is finalizing its proposal to apply the CSAPR 

approach for allocating allowances to any new units locating in 

Indian country. Under the CSAPR approach, allowances to possible 

future new units locating in Indian country are allocated by the 

EPA from an Indian country new unit set-aside established for 

each state with Indian country. See 40 CFR 97.811(b)(2) and 

97.812(b). The EPA reserves 0.1 percent of the total state 

budget for new units in Indian country within that state (5 

percent of the minimum 2 percent new unit set-aside, without 

considering any increase in a state’s new unit set-aside amount

for planned units). Because states generally have no SIP 

authority in these areas, the EPA will continue to allocate such 

allowances to sources locating in such areas of Indian country 

within a state over which a tribe or EPA has demonstrated that a 

tribe has jurisdiction, even if the state submits a SIP to 

replace the applicable FIP. 40 CFR 52.38(b)(9)(vi) and (vii) and 

52.38(b)(10). Unallocated allowances from a state’s Indian 

country new unit set-aside are returned to the state’s new unit 

set-aside and allocated according to the methodology described 

previously. 
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d. Allocations to units that do not operate and the new unit 

set-aside. The EPA is finalizing its proposal to apply the CSAPR 

approach for allocating to units that do not operate and to the 

new unit set-aside. The EPA is codifying the existing CSAPR 

provision under which a covered unit that does not operate for a 

period of two consecutive years will receive allowance 

allocations for a total of up to five years of non-operation. 40 

CFR 97.811(a)(2). This approach mitigates concerns that loss of 

allowance allocations could be an economic consideration that 

would cause a unit, which would otherwise retire, to continue 

operations in order to retain ongoing allowance allocations. 

Pursuant to this provision, starting in the fifth year after the 

first year of non-operation, allowances allocated to such units 

will instead be allocated to the new unit set-aside for the 

state in which the non-operating unit is located. This approach 

allows the balance of allowance allocations to shift over time 

from existing units to new units, aligned with transition of the 

EGU fleet from older generating resources to newer ones. 

Allowances in the new unit set-aside that are not used by new 

units are reallocated to existing units in the state. The EPA 

proposed to retain this timeline for allowance allocation for 

non-operating units and it is finalizing that proposal.

4. Variability Limits, Assurance Levels, and Penalties
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In the original CSAPR, the EPA developed assurance 

provisions, including variability limits and assurance levels 

(with associated compliance penalties), to ensure that each 

state will meet its pollution control obligations and to 

accommodate inherent year-to-year variability in state-level EGU 

operations. 

The original CSAPR budgets, and the updated CSAPR emission 

budgets finalized in this notice, reflect EGU operations in an 

“average year.” However, year-to-year variability in EGU 

operations occurs due to the interconnected nature of the power 

sector and from changing weather patterns, changes in 

electricity demand, or disruptions in electricity supply from 

other units or from the transmission grid. Recognizing this, the 

trading program provisions finalized in the original CSAPR 

rulemaking include variability limits, which define the amount 

by which an individual state’s emissions may exceed the level of 

its budget in a given year to account for this variability in 

EGU operations. A state’s budget plus its variability limit 

equals a state’s assurance level, which acts as a cap on each 

state’s NOX emissions during a control period (that is, during 

the May-September ozone season in the case of this rule). The 

new NOX ozone season trading program provisions established for 
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affected sources in the 22 states subject to this rule contain 

equivalent assurance provisions.

These variability limits ensure that the trading program 

can accommodate the inherent variability in the power sector 

while also ensuring that each state eliminates the amount of 

emissions within the state, in a given year, that must be 

eliminated to meet the statutory mandate of section 

110(a)(2)(D)(i)(I). Moreover, the structure of the program, 

which achieves required emission reductions through limits on 

the total number of allowances allocated, assurance provisions, 

and penalty mechanisms, ensures that the variability limits only 

allow the amount of temporal and geographic shifting of 

emissions that is likely to result from the inherent variability 

in power generation, and not from decisions to avoid or delay 

the installation of necessary controls.

To establish the variability limits in the original CSAPR, 

the EPA analyzed historical state-level heat input variability 

as a proxy for emissions variability, assuming constant emission 

rates. See 76 FR 48265, August 8, 2011. The variability limits

for ozone season NOX in the original CSAPR were calculated as 21 

percent of each state’s budget, and these variability limits for 

the NOX ozone season trading program were then codified in 40 CFR 

97.510 along with the state budgets. The EPA performed an 
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updated analysis to ensure the 21 percent variability limits

used in the original CSAPR rule were also valid for purposes of 

implementing the new and revised budgets finalized in this rule. 

The EPA’s updated analysis demonstrates that variability 

considering recent data remains consistent (i.e., within 1

percent) with the assessment conducted for the original CSAPR

rulemaking. This analysis may be found in the TSD called, Power 

Sector Variability Final CSAPR Update TSD, in the docket for 

this rulemaking. The EPA is therefore setting variability limits 

for the 22 states covered by this rule calculated as 21 percent 

of each state’s new or revised budget and codifying these 

variability limits in 40 CFR 97.810. 

Table VII.E-2 shows the final EGU NOX ozone season Group 2 

emission budgets, variability limits, and assurance levels for 

each state.

Table VII.E-2. Final EGU NOX Ozone Season Emission Budgets

Reflecting EGU NOX Mitigation Available for 2017 at $1,400 per

ton, Variability Limits, and Assurance Levels (Tons)

State EGU 2017* NOX

Ozone Season 

Group 2 Emission

Budgets

EGU NOX Ozone 

Season Group 2 

Variability Limits

EGU NOX Ozone

Season Group 2 

Assurance Levels

Alabama 13,211 2,774 15,985 

Arkansas 12,048 / 9,210 2,530 / 1,934 14,578 / 11,144

Illinois 14,601 3,066 17,667

Indiana 23,303 4,894 28,197

Iowa 11,272 2,367 13,639 

Kansas 8,027 1,686 9,713

Kentucky 21,115 4,434 25,549

Louisiana 18,639 3,914 22,553 
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Maryland 3,828 804 4,632

Michigan 17,023 3,575 20,598

Mississippi 6,315 1,326 7,641

Missouri 15,780 3,314 19,094 

New Jersey 2,062 433 2,495 

New York 5,135 1,078 6,213

Ohio 19,522 4,100 23,622

Oklahoma 11,641 2,445 14,086

Pennsylvania 17,952 3,770 21,722

Tennessee 7,736 1,625 9,361

Texas 52,301 10,983 63,284 

Virginia 9,223 1,937 11,160

West Virginia 17,815 3,741 21,556 

Wisconsin 7,915 1,662 9,577 

22 State Region 316,464 / 313,626

*The EPA is finalizing CSAPR EGU NOX ozone season emission 

budgets for Arkansas of 12,048 tons for 2017 and 9,210 tons for 

2018 and subsequent control periods.

The assurance provisions include penalties that are 

triggered when the state emissions as a whole exceed the state’s

assurance level. The original CSAPR provided that, when the EGUs

in a state exceed that state’s assurance level in a given year, 

some of those sources will be assessed a 3-to-1 allowance 

surrender on the excess tons, as described later on. Each excess 

ton above the assurance level must be met with one allowance for 

normal compliance plus two additional allowances to satisfy the 

penalty. The penalty is designed to deter state-level emissions 

from exceeding assurance levels. This was described in the 

original CSAPR as air quality-assured trading that accounts for 

variability in the electricity sector but also ensures that the 
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necessary emission reductions occur within each covered state.174

If the EGU emissions in a state do not exceed the state’s 

assurance level, no penalties are incurred by any source. 

Establishing assurance levels with compliance penalties 

therefore responds to the court’s holding in North Carolina

requiring the EPA to ensure that sources in each state are 

required to eliminate emissions that significantly contribute to 

nonattainment or interfere with maintenance of the NAAQS in 

another state.175

To assess the penalty under the assurance provisions, the 

EPA evaluates whether any state’s total EGU emissions in a 

control period exceeded the state’s assurance level, and if so, 

 

174 See 76 FR 48266, August 8, 2011: “Far from excusing any state from 

addressing emissions within the state that significantly contribute to 

nonattainment or interfere with maintenance in other states, these 

variability limits ensure that the system can accommodate the inherent 

variability in the power sector while ensuring that each state eliminates the 

amount of emissions within the state, in a given year, that must be 

eliminated to meet the statutory mandate of section 110(a)(2)(D)(i)(I). 

Moreover, the structure of the program, which achieves required emission 

reductions through limits on the total number of allowances allocated, 

assurance provisions, and penalty mechanisms, ensures that the variability 

limits only allow the amount of temporal and geographic shifting of emissions 

that is likely to result from the inherent variability in power generation, 

and not from decisions to avoid or delay the installation of necessary 

controls. Under the remedy, an individual state can have emissions up to its 

budget plus the variability limit. However, the requirement that all sources 

hold allowances covering emissions, and the fact that those allowances are 

allocated based on state-specific budgets without variability, ensure that 

the total emissions from the states do not exceed the sum of the state 

budgets. The remedy, therefore, ensures both that total emissions do not 

exceed the total of the state budgets and that the required emission 

reductions occur in each state.”

175 531 F.3d at 908.
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the EPA then determines which owners and operators of units in 

the state exceeded the common designated representative’s (DR) 

share of the state assurance level and, therefore, will be 

subject to an allowance surrender requirement. Since a DR often 

represents multiple sources, the EPA evaluates which groups of 

units at the common DR level had emissions exceeding the 

respective common DR’s share of the state assurance level. This 

provision is triggered only if two criteria are met: (1) the 

group of sources and units with a common DR are located in a 

state where the total state EGU emissions for a control period 

exceed the state assurance level; and (2) that group with the 

common DR had emissions exceeding the respective DR’s share of 

the state assurance level. The EPA is finalizing equivalent 

assurance provisions, modified only as necessary to allow the 

provisions to work in the same way despite the presence of 

factors that could otherwise alter their operation, such as 

converted banked allowances, the possible election by Georgia to 

bring its sources into the Group 2 program through a SIP 

revision, and the possible election by other states to bring 

non-EGUs and additional allowances into the program through SIP 

revisions. These differences are discussed in section IX in this 

preamble. For more information on the CSAPR assurance provisions

generally, see 76 FR 48294 (August 8, 2011).
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5. Compliance Deadlines

As discussed in sections II.A., III.B., and IV.A., the rule 

requires sources to comply with the new and revised NOX emission 

budgets for the 2017 ozone season (May 1 through September 30)

in order to ensure that necessary NOX emissions reductions are 

made as expeditiously as practicable to assist downwind states’ 

attainment and maintenance of the 2008 ozone NAAQS. The 

compliance deadline is coordinated with the attainment deadline 

for that standard and the rule includes provisions to ensure 

that all necessary reductions occur at sources within each 

individual state. Thus, under the new CSAPR NOX Ozone Season 

Group 2 Trading Program established by this rule at subpart 

EEEEE of 40 CFR part 97, the first control period is the 2017 

ozone season (i.e., May 1, 2017 through September 30, 2017). 

The deadline by which sources must hold Group 2 allowances 

in their compliance accounts at least equal to their emissions 

during the control period is March 1 of the year following the 

control period, which is the same as the deadline for holding 

allowances under the CSAPR annual trading programs. This is a 

change from the current CSAPR NOX Ozone Season Trading Program 

provisions, which set a deadline of December 1 of the year of 

the control period, and is intended to simplify compliance and 

program administration and thereby reduce costs for both 
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regulated parties and the EPA. Under these coordinated 

deadlines, the date by which Group 2 sources will be required to 

hold Group 2 allowances for compliance for purposes of the 2017 

control period is March 1, 2018.

6. Monitoring and Reporting and the Allowance Management 

System

Monitoring and reporting in accordance with the provisions 

of 40 CFR part 75 are required for all units subject to the 

CSAPR NOX ozone season trading programs and for all units covered 

under this final rule for the 2008 ozone NAAQS requirements. The 

EPA finalizes that the monitoring system certification deadline 

by which monitors are installed and certified for compliance use 

generally will be May 1, 2017, the beginning of the first 

control period in this rule, with potentially later deadlines 

for units that commence commercial operation less than 180 days 

before that date. Similarly, the EPA is finalizing that the 

first period in which emission reporting is required would be 

the quarter that includes May 1, 2017 (the second quarter of the 

year that covers April, May, and June). These monitoring and 

reporting deadlines are analogous to the current deadlines under 

the original CSAPR.

Under part 75, a unit has several options for monitoring 

and reporting, including the use of a CEMS; an excepted 
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monitoring methodology based in part on fuel-flow metering for 

certain gas- or oil-fired peaking units; low-mass emissions 

monitoring for certain non-coal-fired, low emitting units; or an 

alternative monitoring system approved by the Administrator 

through a petition process. In addition, sources can submit 

petitions to the Administrator for alternatives to specific 

CSAPR and part 75 monitoring, recordkeeping, and reporting 

requirements. Each CEMS must undergo rigorous initial 

certification testing and periodic quality assurance testing 

thereafter, including the use of relative accuracy test audits 

(RATAs) and 24-hour calibrations. In addition, when a monitoring 

system is not operating properly, standard substitute data 

procedures are applied and result in a conservative estimate of 

emissions for the period involved.

Further, part 75 requires electronic submission of a 

quarterly emissions report to the Administrator, in a format 

prescribed by the Administrator. The report will contain all of 

the data required concerning ozone season NOX emissions. 

Units currently subject to CSAPR NOX ozone season or CSAPR 

NOX annual trading program requirements monitor and report NOX

emissions in accordance with part 75, so most sources will not 

have to make any changes to monitoring and reporting practices. 

In fact, only units in Kansas, which are currently subject to 
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the CSAPR NOX annual trading program but not the CSAPR NOX ozone 

season trading program, will need to start newly reporting ozone

season NOX mass emissions. These emissions are already measured 

under the annual program, so the change will be a minor 

reporting modification and the sources will not be required to 

install new monitoring systems. Units in the following states 

monitor and report NOX emissions under the CSAPR NOX ozone season

trading program and will continue to do so without change under 

the CSAPR ozone update for the 2008 NAAQS: Alabama, Arkansas, 

Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, 

Michigan, Mississippi, Missouri, New Jersey, New York, Ohio, 

Oklahoma, Pennsylvania, Tennessee, Texas, Virginia, West 

Virginia, and Wisconsin. 

7. Recordation of Allowances

The EPA is establishing deadlines for recording allocations 

of ozone season NOX allowances to sources affected under this 

rule that generally parallel the recordation deadlines under the 

existing CSAPR trading programs, but with later deadlines 

reflecting the fact that this program is starting two years 

later than the existing CSAPR trading programs. Specifically, 

allocations to existing units for the first two control periods 

under the new program (2017 and 2018) will be recorded by 

January 3, 2017. This recordation deadline is four months before 
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the start of the first control period for the new program (May 

1, 2017) and 14 months before the date by which sources are 

required to hold allowances sufficient to cover their emissions 

for that first control period (March 1, 2018, as discussed 

previously), giving sources ample time to engage in allowance 

trading activities consistent with their preferred compliance 

strategies. Allowance allocations for 2019 and 2020 will be 

recorded by July 1, 2018; allocations for 2021 and 2022 will be 

recorded by July 1, 2019; and allocations for 2023 and 2024 will

be recorded by July 1, 2020. Allowances for each succeeding 

control period will be recorded by July 1 of the fourth year 

before the year of the control period, matching the recordation 

schedule for the existing CSAPR trading programs. These 

deadlines apply to recordation of both allocations based on the 

default allocation provisions under 40 CFR 97.811 and 97.812 and 

allocations provided by states pursuant to approved SIP 

revisions. As under the CSAPR annual programs, allocations to 

new units from the NUSAs and Indian country NUSAs are made in 

two rounds, with first-round allocations recorded by August 1 of 

the year of the control period and second-round allocations 

recorded by February 15 of the year after the year of the 

control period. (In a change from the current CSAPR NOX Ozone 

Season Trading Program provisions, the second-round recordation 
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deadline is now coordinated with the analogous deadline for the 

CSAPR annual programs.) The recordation provisions for the new 

program are codified in 40 CFR 97.821.

Consistent with the first recordation deadline described 

previously for allocations to existing units under the new 

trading program, the EPA is also delaying the deadline in 40 CFR 

97.521(c) for recordation of allowances for the 2017 and 2018 

control periods under the existing NOX ozone season trading 

program (i.e., allocations for sources in Georgia) to January 3, 

2017. As explained in the proposal, the reason for extending 

this deadline was to avoid the possible need to take back 

allowances recorded under the existing NOX ozone season trading 

program in cases where state budgets might have been reduced 

under that program by this final rule. For 2018 allocations, the 

EPA will defer recordation if a states submits a timely letter 

indicating an intent to submit a SIP revision that if approved 

would substitute state-determined allocations for the default 

allocations determined by the EPA.

F. Submitting a SIP

Any state may replace the FIP finalized in this rule with a 

SIP at any time if approved by the EPA. “Abbreviated” and “full” 

SIP options finalized in the original CSAPR rulemaking continue 

to be available. An abbreviated SIP allows a state to submit a 
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SIP that would provide for state-based allocation provisions in 

the CSAPR NOX ozone season trading program that are then 

incorporated into the FIP the EPA has established for that 

state. A second approach, referred to as a full SIP, allows a 

state to adopt state provisions that would require sources in 

the state to continue to use the EPA-administered CSAPR trading 

program through an approved SIP, rather than a FIP. In addition

to the abbreviated and full SIP options, as under the original 

CSAPR rulemaking, the EPA provides states with an opportunity to 

adopt state-determined allowance allocations for existing units 

for the second control period under this rule – in this case, 

the 2018 control period – through streamlined SIP revisions. See

76 FR 48208 at 48326-48332 (August 8, 2011) for additional 

discussion on full and abbreviated SIP options and 40 CFR 

52.38(b). Once the state has made a SIP submission, the EPA will 

evaluate the submission(s) for completeness. The EPA's criteria 

for determining completeness of a SIP submission are codified at 

40 CFR part 51, appendix V. 

1. 2018 SIP Option

The EPA will allow a state to submit a SIP revision 

establishing allowance allocations for existing units for the 

second compliance year (2018) for the new and revised budgets in 

order to replace the FIP-based allocations finalized in this 
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rule. The process will be the same as under the original CSAPR 

rulemaking with deadlines shifted roughly 2 years: a state that 

wishes to take advantage of this option must submit a letter to 

EPA by December 15, 2016, indicating its intent to submit a 

complete SIP revision by April 1, 2017. The SIP must provide in 

an EPA-prescribed format a list of existing units and their

allocations for the 2018 control period. If a state does not 

submit a letter of intent to submit a SIP revision, FIP 

allocations will be recorded by January 3, 2017. If a state 

submits a timely letter of intent but fails to submit a SIP 

revision, FIP allocations will be recorded by April 15, 2017. If 

a state submits a timely letter of intent followed by a timely 

SIP revision that is approved, the approved SIP allocations will

be recorded by October 1, 2017.

2. 2019 and beyond SIP Option

For the 2019 control period and later, the EPA is 

finalizing revisions to the regulations at 40 CFR 52.38(b) that 

provide additional options to submit abbreviated or full SIP 

revisions to modify or replace the FIP allowance allocations in 

2019 or later years. The deadline for SIP submittals to modify 

or replace the FIP allocations for 2019 and 2020 is December 1, 

2017. The deadline for the state to then submit state 

allocations for 2019 and 2020 is June 1, 2018 and the deadline 
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for the EPA to record those allocations is July 1, 2018. A state 

may submit by December 1, 2018, a SIP revision applicable to 

control periods starting in 2021 or 2022, with state allocations 

due June 1, 2019, and allocation recordation by July 1, 2019.

See section IV of this preamble and 76 FR 48208 at 48326-48332

(August 8, 2011) for additional discussion on full and 

abbreviated SIP options and 40 CFR 52.38(b).

3. SIP Revisions that Do Not Use the CSAPR Trading Program

Each state has the authority under the CAA to replace the 

FIP finalized in this rule by submitting a transport SIP 

revision that does not use the CSAPR NOX ozone season trading 

program. The EPA will evaluate such SIPs to determine whether 

they include adequate and enforceable provisions ensuring that 

the emission reductions will be achieved based on the particular 

control strategies selected by each state. The SIP revision 

could include the following general elements: (1) a 

comprehensive baseline statewide NOX emission inventory (which 

includes growth and existing control requirements); (2) a list 

and description of control measures to satisfy the state 

emission reduction obligation and a demonstration showing when 

each measure will be in place by the time the SIP is approved 

and replaces the CSAPR FIP; (3) fully-adopted state rules 

providing for such NOX controls during the ozone season; (4) for 
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EGUs greater than 25 MWe and large boilers and combustion 

turbines with a rated heat input capacity of 250 mmBtu per hour 

or greater, Part 75 monitoring, and for other units, monitoring 

and reporting procedures sufficient to demonstrate that sources 

are complying with the SIP; and (5) a projected inventory 

demonstrating that state measures along with federal measures 

will achieve the necessary emission reductions in a timely 

manner considering ozone NAAQS attainment dates.176 The SIPs must 

meet the requirements for public hearing, be adopted by the 

appropriate board or authority, and establish by a practically 

enforceable regulation a permit schedule and date for each 

affected source or source category to achieve compliance. For 

further information on replacing a FIP with a SIP, see the 

discussion in the final CSAPR rulemaking (76 FR 48326, August 8, 

2011). 

4. Submitting a SIP to Participate in CSAPR for States Not 

Included in this Rule

There could be circumstances where a state that is not 

obligated to reduce NOX emissions in order to address interstate 

transport requirements (such as Florida, North Carolina, or 

South Carolina for purposes of this final rule) may wish to 

 

176 The EPA notes that the SIP is not required to include modeling.
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participate in the CSAPR NOX ozone season trading program in 

order to serve a different regulatory purpose. For example, the 

state may have a pending request for redesignation of an area to 

attainment that relies on participation in the trading program 

as part of the state’s demonstration that emissions will not 

exceed certain levels; or the state may wish to rely on 

participation in the trading program for purposes of a SIP 

revision to satisfy certain obligations under the Regional Haze 

Rule. Further, as discussed previously, Georgia may wish to join 

the CSAPR NOX ozone season Group 2 trading program in order to 

trade with other Group 2 states. 

The EPA took comment on whether the EPA should revise the 

CSAPR regulations to allow the EPA to approve a SIP revision in 

which a state seeks to participate in the NOX ozone season

trading program for a purpose other than addressing ozone 

transport obligations.

The EPA is finalizing revisions to CSAPR regulations to 

allow Georgia to opt-in to the CSAPR NOX ozone season Group 2 

trading group if it adopts, as part of a SIP revision, a NOX

ozone season emission budget no higher than the emission budget 

that reflects EGU NOX mitigation strategies represented by a 

uniform cost of $1,400 per ton for EGUs in Georgia. Such an 

emission budget is provided by this final rule. As discussed 
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previously, Georgia submitted comments indicating an interest in 

allowing its sources to trade with other states, although 

without any change to its budget. The EPA has already discussed 

the reasons for rejecting the specific option most favored by 

Georgia in comments. By providing Georgia with the option to 

bring the state’s sources into the Group 2 program through a SIP 

revision, the EPA is allowing Georgia to implement its expressed 

preference for broader trading if that preference continues to 

apply even when conditioned on adoption of a more stringent 

budget. 

The EPA also took comment on whether the EPA should revise 

the CSAPR regulations to allow the EPA to approve a SIP revision 

in which a state seeks to participate in the NOX ozone season 

trading program for a purpose other than addressing ozone 

transport obligations. The EPA received no comments indicating 

that states had an interest in this option at this time, and the 

EPA is therefore not finalizing this option at this time.

G. Title V Permitting

This rule, like CSAPR, does not establish any permitting 

requirements independent of those under title V of the CAA and 
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the regulations implementing title V, 40 CFR parts 70 and 71.177

All major stationary sources of air pollution and certain other 

sources are required to apply for title V operating permits that 

include emission limitations and other conditions as necessary 

to assure compliance with the applicable requirements of the 

CAA, including the requirements of the applicable State 

Implementation Plan. CAA sections 502(a) and 504(a), 42 U.S.C. 

7661a(a) and 7661c(a). The "applicable requirements" that must 

be addressed in title V permits are defined in the title V 

regulations (40 CFR 70.2 and 71.2 (definition of "applicable

requirement")).

The EPA anticipates that, given the nature of the units 

subject to this transport rule and given that many of the units 

covered here are already subject to CSAPR, most of the sources 

at which the units are located are already subject to title V 

permitting requirements. For sources subject to title V, the 

interstate transport requirements for the 2008 ozone NAAQS that

are applicable to them under the final FIPs are "applicable 

requirements" under title V and therefore must be addressed in 

the title V permits. For example, requirements concerning 

designated representatives, monitoring, reporting, and 

 

177 Part 70 addresses requirements for state title V programs, and Part 

71 governs the federal title V program.
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recordkeeping, the requirement to hold allowances covering 

emissions, the assurance provisions, and liability are 

"applicable requirements" that must be addressed in the permits.

Title V of the CAA establishes the basic requirements for 

state title V permitting programs, including, among other 

things, provisions governing permit applications, permit 

content, and permit revisions that address applicable 

requirements under final FIPs in a manner that provides the 

flexibility necessary to implement market-based programs such as 

the trading programs established by CSAPR and updated by this 

ozone interstate transport rule. 42 U.S.C. 7661a(b). 

In CSAPR, the EPA established standard requirements 

governing how sources covered by the rule would comply with 

title V and its regulations.178 40 CFR 97.506(d). Under this 

rule, those same requirements would continue to apply to sources 

already in the CSAPR NOX ozone season trading program and to any 

newly affected sources that have been added to address 

interstate transport of the 2008 ozone NAAQS. For example, the 

title V regulations provide that a permit issued under title V 

must include “[a] provision stating that no permit revision 

 

178 The EPA also issued a guidance document and template that includes 

instructions describing how to incorporate the CSAPR applicable 

requirements into a source’s title V permit. 

https://www3.epa.gov/airtransport/CSAPR/pdfs/CSAPR_Title_V_Permit_Guid

ance.pdf
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shall be required under any approved . . . emissions trading and 

other similar programs or processes for changes that are 

provided for in the permit.” 40 CFR 70.6(a)(8) and 71.6(a)(8). 

Consistent with these provisions in the title V regulations, in 

CSAPR, the EPA included a provision stating that no permit 

revision is necessary for the allocation, holding, deduction, or 

transfer of allowances. 40 CFR 97.806(d)(1). This provision is 

also included in each title V permit for an affected source. 

This final rule maintains the approach taken under CSAPR that 

allows allowances to be traded (or allocated, held, or deducted) 

without a revision to the title V permit of any of the sources 

involved.

Similarly, this final rule also continues to support the 

means by which sources in the CSAPR NOX ozone season trading 

program can use the title V minor modification procedure to 

change their approach for monitoring and reporting emissions, in 

certain circumstances. Specifically, sources may use the minor 

modification procedure so long as the new monitoring and 

reporting approach is one of the prior-approved approaches under 

CSAPR (i.e., approaches using a continuous emission monitoring 

system, an excepted monitoring system under appendices D and E 

to part 75, a low mass emissions excepted monitoring methodology 

under 40 CFR 75.19, or an alternative monitoring system under 
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subpart E of part 75), and the permit already includes a 

description of the new monitoring and reporting approach to be 

used. See 40 CFR 97.806(d)(2); 40 CFR 70.7(e)(2)(i)(B) and 40 

CFR 71.7(e)(1)(i)(B). As described in the EPA’s 2015 guidance,

the agency suggests in its template that sources may comply with 

this requirement by including a table of all of the approved 

monitoring and reporting approaches under the rule, and the 

applicable requirements governing each of those approaches. 

Inclusion of the table in a source’s title V permit therefore 

allows a covered unit that seeks to change or add to their 

chosen monitoring and recordkeeping approach to easily comply 

with the regulations governing the use of the title V minor 

modification procedure. 

Under CSAPR, in order to employ a monitoring or reporting 

approach different from the prior-approved approaches discussed 

previously, unit owners and operators must submit monitoring 

system certification applications to the EPA establishing the 

monitoring and reporting approach actually to be used by the 

unit, or, if the owners and operators choose to employ an 

alternative monitoring system, to submit petitions for that 

alternative to the EPA. These applications and petitions are 

subject to EPA review and approval to ensure consistency in 

monitoring and reporting among all trading program participants. 
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The EPA’s responses to any petitions for alternative monitoring 

systems or for alternatives to specific monitoring or reporting 

requirements are posted on the EPA’s website.179 The EPA 

maintains the same approach in this final rule.

Consistent with the EPA’s approach under CSAPR, the 

applicable requirements resulting from these FIPs must be 

incorporated into affected sources’ existing title V permits 

either pursuant to the provisions for reopening for cause (40 

CFR 70.7(f) and 40 CFR 71.7(f)) or the standard permit renewal 

provisions (40 CFR 70.7(c) and 71.7(c)).180 For sources newly 

subject to title V that are affected sources under the final 

FIPs, the initial title V permit issued pursuant to 40 CFR 

70.7(a) should address the final FIP requirements.

As in CSAPR, the approach to title V permitting under the 

FIPs imposes no independent permitting requirements and should 

reduce the burden on sources already required to be permitted 

under title V and on permitting authorities. 

 

179 https://www.epa.gov/airmarkets/part-75-petition-responses

180 A permit is reopened for cause if any new applicable requirements 

(such as those under a FIP) become applicable to an affected source 

with a remaining permit term of 3 or more years. If the remaining 

permit term is less than 3 years, such new applicable requirements 

will be added to the permit during permit renewal. See 40 CFR 

70.7(f)(1)(I) and 71.7(f)(1)(I).
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H. Relationship to Other Emission Trading and Ozone Transport 

Programs

1. Interactions with Existing CSAPR Annual Programs, Title IV 

Acid Rain Program, NOX SIP Call, section 176A Petition, and Other 

State Implementation Plans

a. CSAPR Annual Programs.181 Nothing in this rule affects any 

CSAPR NOX annual or CSAPR SO2 Group 1 or CSAPR SO2 Group 2 

requirements.182 The CSAPR annual program requirements were 

premised on the 1997 and 2006 PM2.5 NAAQS that are not being 

addressed in this rulemaking. The CSAPR NOX annual trading 

program and the CSAPR SO2 Group 1 and Group 2 trading programs 

remain in place and will continue to be administered by the EPA.

The EPA acknowledges that, in addition to the ozone budgets 

discussed previously, the D.C. Circuit has remanded for 

reconsideration the CSAPR SO2 budgets for Alabama, Georgia, South 

Carolina, and Texas. EME Homer City II, 795 F.3d at 138. This 

rule does not address the remand of these CSAPR phase 2 SO2

 

181 Reflecting the nomenclature updates adopted in this rule, the CSAPR 

Annual Programs are referred to in regulations as the CSAPR NOX Annual 

Trading Program (40 CFR 97.401-97.435), the CSAPR SO2 Group 1 Trading 

Program (40 CFR 97.601-97.635) and the CSAPR SO2 Group 2 Trading 

Program (40 CFR 97.701-97.735). (Prior to this rule, the regulations 

used the acronym “TR” instead of the acronym “CSAPR”.)

182 As discussed in section IX in this preamble, the EPA is making 

technical corrections to the regulations concerning CSAPR’s annual 

programs, but these corrections do not substantively alter any 

existing requirements. 
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emission budgets. On June 27, 2016, the EPA released a 

memorandum outlining the agency's approach for responding to the 

D.C. Circuit's July 2015 remand of the CSAPR phase 2 SO2 annual 

emission budgets for Alabama, Georgia, South Carolina and Texas. 

The memorandum can be found at 

https://www3.epa.gov/airtransport/CSAPR/pdfs/CSAPR_SO2_Remand_Me

mo.pdf.

b. Title IV Interactions. This rule will not affect any Acid 

Rain Program requirements. Acid Rain Program SO2 and NOX

requirements are established in Title IV of the Clean Air Act, 

and will continue to apply independently of this rule’s 

provisions. Any Title IV sources that are subject to provisions 

of this rule are still required to comply with Title IV 

requirements, including the requirement to hold Title IV 

allowances to cover SO2 emissions at the end of a compliance 

year.

c. NOX SIP Call Interactions. States subject to both the NOX SIP 

Call and the final CSAPR Update will be required to comply with 

the requirements of both rules. The final CSAPR Update rule 

requires NOX ozone season emission reductions from EGUs greater 

than 25 MW in most NOX SIP Call states and at levels greater than 

required by the NOX SIP Call. Therefore, compliance with the 
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budgets established under the CSAPR Update would satisfy the 

requirements of the NOX SIP Call for these large EGU units.

The NOX SIP Call states used the NOX Budget Trading Program 

(NBP) model rule to comply with the NOX SIP Call requirements for

EGUs serving a generator with a nameplate capacity greater than 

25 MW and large non-EGUs with a maximum rated heat input 

capacity greater than 250 MMBTU/hr. (In some states, EGUs 

smaller than 25 MW were also part of the NBP as a carryover from 

the Ozone Transport Commission NOX Budget Trading Program.) When 

the EPA promulgated CAIR and the CAIR FIPs, it allowed states, 

via SIP, to adopt SIP revisions modifying the applicability 

provisions of the CAIR NOX Ozone Season Trading Program to 

include all NOX Budget Trading Program units in that program as a 

way to continue to meet the requirements of the NOX SIP Call for 

these sources.

In CSAPR, however, the EPA allowed states, via SIP, to 

expand applicability of the trading program to EGUs smaller than 

25 MW but did not allow the expansion of applicability to 

include large non-EGU sources. The EPA explained that the reason

for excluding large non-EGU sources was based on a concern that 

emissions from these sources were generally much lower than 

portion of each state’s NOX SIP Call budget amount attributable 

to these large non-EGUs, and we were therefore concerned that 
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surplus allowances created as a result of an overestimation of 

baseline emissions (the main basis for the non-EGU portion of 

the NOX Budget Trading Program budget) and subsequent shutdowns 

of these large non-EGUs(since 1999 when the NOX SIP Call was 

promulgated) would prevent needed reductions by the EGUs to 

address significant contribution to downwind air quality 

impacts. See 76 FR 48323 (August 8, 2011).

Since then, states have had to find appropriate ways to 

ensure that their rules continue to show compliance with 

emissions reduction obligations of the NOX SIP Call, particularly 

for large non-EGUs.183 Most states that used the CAIR NOX Ozone 

Season Trading Program as a means of complying with the NOX SIP 

Call obligations for large non-EGUs are still working to find 

suitable solutions now that CSAPR has replaced CAIR.184

Therefore, the EPA is finalizing provisions to allow any NOX

SIP Call state subject to a FIP promulgated by this rule to 

voluntarily submit a SIP revision with a revised budget level 

that is environmentally neutral to address the state’s NOX SIP 

 

183 Compliance with CSAPR by the EGUs in a state will generally ensure 

that aggregate emissions from the state’s EGUs will not exceed the 

amount of the state’s NOX SIP Call budget for the source category 

because the CSAPR cap is lower than the EGU portion of the NOX SIP Call 

emission levels.

184 Affected sources continue to report ozone season emissions using 

part 75 as required by the NOX SIP Call and reported emissions have 

been below NOX SIP Call non-EGU budget levels.
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Call requirement for ozone season NOX reductions. The SIP 

revision could include a provision to expand the applicability 

of the CSAPR NOX ozone season trading program in that state to 

include all NOX Budget Trading Program units, including large 

non-EGUs. Analysis shows that these units (mainly large non-EGU 

boilers, combustion turbines, and combined cycle units with a 

maximum rated heat input capacity greater than 250 mmBtu/hr) 

continue to emit well below their portion of the NOX SIP Call 

budget. In order to ensure that the necessary amount of EGU 

emission reductions occur for purposes of addressing interstate 

transport with respect to the 2008 ozone NAAQS in covered states 

that submit such a SIP revision, the corresponding state ozone 

season emission budget amount could be increased by no more than 

the lesser of the highest ozone season NOX emissions in the last 

3 years from those units or the portion of the NOX Budget Trading 

Program Budget attributable to large non-EGUs.185 The 

environmental impact would be neutral using this approach. This 

approach addresses requests by states for help in determining an 

appropriate way to address the continuing NOX SIP Call 

requirement as to non-EGU sources.

 

185 For further information regarding the determination of the maximum amounts 

of additional allowances that could be issued by these states, see the memo 

entitled “Maximum amounts of additional ozone season NOX allowances that may 

be issued under SIP revisions expanding CSAPR trading program applicability 

to large non-EGUs”, available in the docket.
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The variability limits established for EGUs remain

unchanged as a result of including these non-EGUs. The assurance 

provisions apply to EGUs, and emissions from non-EGUs would not 

affect the assurance levels. The provisions of the new Group 2 

trading program exclude the emissions and allowance allocations 

of any non-EGUs participating in the program from any 

determination of whether a state exceeds its assurance level or 

whether any group of sources exceeds its share of the 

responsibility for any exceedance of a state’s assurance level. 

Similarly, the provisions limit the total allocations that can 

be taken into account for such purposes by all the EGUs in the 

state to the state budget and thereby prevent any additional 

allowances issued by the state as a result of expanded program 

applicability from unduly influencing determinations of shares 

of responsibility for any exceedance of the state’s assurance 

level. For additional discussion of the specific regulatory 

provisions involved, see section IX of this preamble.

The NOX SIP Call generally requires that states choosing to 

rely on large EGUs and large non-EGUs for meeting NOX SIP Call 

emission reduction requirements must establish a NOX mass 

emissions cap on each source and require part 75, subpart H 

monitoring. As an alternative to source-by-source NOX mass 

emission caps, a state may impose NOX emission rate limits on 
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each source and use maximum operating capacity for estimating NOX

mass emissions or may rely on other requirements that the state 

demonstrates to be equivalent to either the NOX mass emission 

caps or the NOX emission rate limits that assume maximum 

operating capacity. Collectively, the caps or their alternatives 

cannot exceed the portion of the state budget for those sources. 

See 40 CFR 51.121(f)(2) and (i)(4). If a state chooses to expand 

the applicability of the CSAPR NOX ozone season trading program 

to other sources in the state through a voluntary SIP revision

to include all the NOX Budget Trading Program units in the CSAPR 

NOX ozone season trading program, the cap requirement would be 

met through the new budget and the monitoring requirement would 

be met through the trading program provisions, which require 

part 75 monitoring. The EPA will work with states to ensure that 

NOX SIP Call obligations continue to be met.

d. Other State Implementation Plans. The EPA has not conducted 

any technical analysis to determine whether compliance with this 

rule will satisfy other requirements for EGUs in any attainment 

or nonattainment areas (e.g., RACT or BART). For that reason, 

the EPA is not making determinations nor establishing any 

presumptions that compliance with the final rule satisfies any 

other requirements for EGUs. Based on analyses that states 

conduct on a case-by-case basis, states may be able to conclude 
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that compliance with the rule for certain EGUs fulfills other 

SIP requirements. The EPA encourages states to work with their 

regional office on these issues.

2. Other Federal Rulemakings

a. Clean Power Plan. On August 3, 2015, the EPA finalized the 

Clean Power Plan (CPP).186 The Clean Air Act – under section 

111(d) – creates a partnership between the EPA, states, tribes 

and U.S. territories – with the EPA setting a goal and states 

and tribes choosing how they will meet it. The CPP follows that 

approach. The CPP establishes interim and final CO2 emission 

performance rates for certain existing power plants, under CAA 

section 111(d). States then develop and implement plans that 

ensure that the affected power plants in their state – either 

individually, together or in combination with other measures –

achieve these rates or equivalent state rate- or mass-based 

goals. The CPP includes interim emission performance rates (or 

equivalent state goals) to be achieved over the years 2022 to 

2029 and the final CO2 emission performance rates (or equivalent 

state goals) to be achieved in 2030 and after. 

On February 9, 2016, the Supreme Court granted applications

to stay the Clean Power Plan, pending judicial review of the 

 

186 Carbon Pollution Emission Guidelines for Existing Stationary Sources: 

Electric Utility Generating Units; Final Rule, 80 FR 64661 (Oct. 23, 2015).
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rule in the D.C. Circuit, including any subsequent review by the 

Supreme Court.187 The EPA firmly believes the Clean Power Plan 

will be upheld when the courts address its merits because the 

Clean Power Plan rests on strong scientific and legal 

foundations. The stay means that no one has to comply with the 

Clean Power Plan while the stay is in effect. During the 

pendency of the stay, states are not required to submit plans to 

EPA, and EPA will not take any action to impose or enforce any 

such obligations. The Supreme Court’s orders granting the stay 

did not discuss the parties’ differing views of whether and how 

the stay would affect the CPP’s compliance deadlines, and they 

did not expressly resolve that issue. In this context, the 

question of whether and to what extent tolling is appropriate 

will need to be resolved once the validity of the CPP is finally 

adjudicated.

Because mandatory emission reductions under the CPP would 

not begin until several years after the 2017 implementation of 

the CSAPR Update rule, the EPA does not anticipate significant 

interactions with the CPP and the near-term (i.e., starting in 

2017) ozone season EGU NOX emission reduction requirements under 

this rule. See section V.B of the preamble for further 

 

187 West Virginia et al. v. EPA, No. 15A773 (U.S. Feb. 9, 2016).
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information on this point. However the EPA notes that actions 

taken to reduce CO2 emissions (e.g., deployment of zero-emitting 

generation) may also reduce ozone season NOX emissions. The EPA 

is also cognizant of the potential influence of addressing 

interstate ozone transport on CO2 emissions. As states and 

utilities undertake the near- and longer-term planning to reduce 

emissions of these pollutants, they will have the opportunity to 

consider how compliance with this rule can anticipate, or be 

consistent with, greenhouse gas mitigation. Some EGU NOX

mitigation strategies, most notably shifting generation from 

higher NOX-emitting coal-fired units to existing low NOX-emitting 

units or zero-emitting units, can potentially also reduce CO2

emissions. As the EPA has structured the interstate transport 

obligations that would be established by this rule as 

requirements to limit aggregate affected EGU emissions and the 

EPA is not enforcing source-specific emission reduction 

requirements, EGU owners have the flexibility to plan for

compliance with the interstate ozone transport requirements in 

ways that are consistent with state and EGU strategies to reduce 

CO2 emissions.

b. 2015 Ozone Standard. On October 1, 2015, the EPA strengthened

the ground-level ozone NAAQS to 70 ppb, based on extensive 

scientific evidence about ozone’s effects on public health and 
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welfare.188 This rule updating the CSAPR NOX ozone season trading 

program to address interstate emission transport with respect to 

the 2008 ozone NAAQS is a separate and distinct regulatory 

action and is not meant to address the CAA’s good neighbor 

provision with respect to the strengthened 2015 ozone NAAQS.

The EPA is mindful of the need to address ozone transport 

for the 2015 ozone NAAQS. The statutory deadline for the EPA to 

finalize area designations is October 1, 2017. Further, good 

neighbor SIPs from states are due on October 1, 2018. The steps 

taken under this rule to reduce interstate ozone transport will 

help states make progress toward attaining and maintaining the 

2015 ozone NAAQS. Moreover, to facilitate the implementation of 

the CAA good neighbor provision with respect to the 2015 ozone 

NAAQS, the EPA intends to provide additional information 

regarding steps 1 and 2 of the CSAPR framework in the fall of

2016. In particular, the EPA expects to conduct and release

modeling necessary to assist states to identify projected 

nonattainment and maintenance receptors with respect to the 2015 

ozone NAAQS and identify the upwind state emissions that 

contribute significantly to these receptors. 

VIII. Costs, Benefits, and Other Impacts of the Final Rule

 

188 80 FR 65291, October 26, 2015
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The EPA evaluated the costs, benefits, and impacts of 

compliance with the final EGU NOX ozone season emission budgets

developed using uniform control stringency represented by $1,400 

per ton. In addition, the EPA also assessed compliance with one

more and one less stringent alternative EGU NOX ozone season

emission budgets, developed using uniform control stringency 

represented by $3,400 per ton and $800 per ton, respectively. 

The EPA evaluated the impact of implementing these emission 

budgets to reduce interstate transport for the 2008 ozone NAAQS 

in 2017. More details for this assessment can be found in the 

Regulatory Impact Analysis (RIA) in the docket for this final

rule.

The EPA notes that its analysis of the regulatory control 

alternatives (i.e., the final rule and more and less stringent 

alternatives) is illustrative in nature, in part because the EPA 

will implement the EGU NOX emission budgets via a regional NOX

ozone season allowance trading program. This implementation 

approach provides utilities with the flexibility to determine 

their own compliance path. The EPA’s assessment develops and 

analyzes one possible scenario for implementing the NOX budgets

finalized by this action and one possible scenario for 

implementing the more and less stringent alternatives.

Furthermore, the emission budgets evaluated for the CSAPR Update 
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regulatory control alternative in this benefit and cost analysis

are illustrative because they differ somewhat from the budgets 

finalized in this rule. (The budgets for the more and less 

stringent alternative also differ somewhat from the budgets 

represented by $3,400 per ton and $800 per ton reported in Table 

VI.C-1). However, the RIA also reports the costs and emissions 

changes associated with the finalized budgets. Further details 

on the illustrative nature of this analysis can be found in the 

RIA in the docket for this rule.

For this final rule, the EPA analyzed the costs to the 

electric power sector and emissions changes using IPM. The IPM 

is a dynamic linear programming model that can be used to 

examine the economic impacts of air pollution control policies 

throughout the contiguous United States for the entire power 

system. Documentation for IPM can be found in the docket for 

this rulemaking or at www.epa.gov/powersectormodeling.

Table VIII.1 provides the projected 2017 EGU emissions 

reductions for the evaluated regulatory control alternatives.

Table VIII.1 - Projected 2017 Emissions Reductions of NOx and CO2

with the Final NOX Emission Budgets and More or Less Stringent 

Alternatives (Tons)1,2

Final Rule More Stringent 

Alternative

Less Stringent 

Alternative
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NOX (annual) -75,000 -79,000 -27,000

NOX (ozone season) -61,000 -66,000 -27,000

CO2 (annual) -1,600,000 -2,000,000 -1,300,000

1 NOx emissions are reported in English (short) tons; CO2 is 

reported in metric tons.

2 All estimates are rounded to two significant figures.

The EPA estimates the costs associated with compliance with 

the illustrative regulatory control alternative for the final 

CSAPR Update to be approximately $68 million annually. These 

costs represent the private compliance cost of reducing NOX

emissions to comply with the final rule and does not include 

monitoring, recordkeeping, and reporting costs. Table VIII.2

provides the estimated costs for the evaluated regulatory 

control scenarios, including the final rule and more and less 

stringent alternatives. Estimates are in 2011 dollars. 

Table VIII.2 – Cost Estimates for Compliance with the Final Rule

NOX Emission Budgets and More and Less Stringent Alternatives 

(2011$)1,2

Final Rule More Stringent 

Alternative

Less Stringent 

Alternative

Costs 68,000,000 82,000,000 8,000,000

1 Costs are annualized over the period 2017 through 2020 using 

the 4.77 discount rate used in IPM’s objective function of 

minimizing the net present value of the stream of total costs of 

electricity generation. These costs do not include monitoring, 

recordkeeping, and reporting costs, which are reported 

separately. See Chapter 4 of the RIA for this final rule for 

details and explanation.

2 All estimates are rounded to two significant figures.
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In this analysis, the EPA monetized the estimated benefits 

associated with reducing population exposure to ozone and PM2.5

from reductions in NOX emissions and co-benefits of decreased 

emissions of CO2, but was unable to quantify or monetize the 

potential co-benefits associated with reducing exposure to NO2 as 

well as ecosystem effects and reduced visibility impairment from 

reducing NOX emissions. Among the benefits it could quantify, the 

EPA estimated combinations of health benefits at discount rates 

of 3 percent and 7 percent (as recommended by the EPA’s 

Guidelines for Preparing Economic Analyses [U.S. EPA, 2014] and 

OMB’s Circular A-4 [OMB, 2003]) and climate co-benefits of CO2

reductions at discount rates of 5 percent, 3 percent, 2.5 

percent, and 3 percent (95th percentile) (as recommended by the 

interagency working group). The EPA estimates the monetized 

ozone-related benefits189 of the final rule to be $370 million to 

$610 million (2011$) in 2017 and the PM2.5-related co-benefits190

of the final rule to be $93 million to $210 million (2011$) 

using a 3 percent discount rate and $83 million to $190 million 

(2011$) using a 7 percent discount rate. Further, the EPA 

 

189 The ozone-related health benefits range is based on applying different 

adult mortality functions (i.e., Smith et al. (2009) and Zanobetti and 

Schwartz (2008)).

190 The PM2.5-related health co-benefits range is based on applying different 

adult mortality functions (i.e., Krewski et al. (2009) and Lepeule et al. 

(2012)).
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estimates CO2-related co-benefits of $54 to $87 million (2011$). 

Additional details on this analysis are provided in the RIA for 

this final rule. Tables VIII.3 and VIII.5 summarize the 

quantified monetized human health and climate benefits of the 

rule and the more and less stringent control alternatives. Table 

VIII.4 summarizes the estimated avoided ozone- and PM2.5-related 

health incidences for the final rule and the more and less 

stringent control alternatives.

Table VIII.3 Estimated Health Benefits of Projected 2017 

Emissions Reductions for the Final Rule, and More or Less 

Stringent Alternatives (millions of 2011$)1,2

Final Rule More Stringent

Alternative

Less Stringent 

Alternative

NOX (as ozone) $370 to $610 $400 to $650 $160 to $270

NOX (as PM2.5)

 3% Discount Rate

 7% Discount Rate

$93 to $210

$83 to $190

$98 to $220

$88 to $200

$34 to $75

$30 to $67

Total

 3% Discount Rate

 7% Discount Rate

$460 to $810

$450 to $790

$500 to $870

$490 to $850

$200 to $340

$190 to $330

1 The health benefits range is based on adult mortality functions 

(e.g., from Krewski et al. (2009) with Smith et al. (2009) to 

Lepeule et al. (2012) with Zanobetti and Schwartz (2008)).

2 All estimates are rounded to two significant figures.

Table VIII.4 Summary of Estimated Avoided Ozone-Related and 

PM2.5-Related Health Incidences from Projected 2017 Emissions 

Reductions for the Final Rule and More or Less Stringent 

Alternatives1
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Ozone-related Health Effects

Final 

Rule

More 

Stringent 

Alternative

Less 

Stringent 

Alternative

Avoided Premature Mortality

Smith et al. (2009) (all ages) 21 23 9

Zanobetti and Schwartz (2008) 

(all ages) 60 65 26

Avoided Morbidity

Hospital admissions—respiratory 

causes (ages > 65) 59 64 26

Emergency room visits for 

asthma (all ages) 240 250 100

Asthma exacerbation (ages 6-18) 67,000 73,000 30,000

Minor restricted-activity days 

(ages 18-65) 170,000 180,000 75,000

School loss days (ages 5-17) 56,000 60,000 25,000

PM2.5-related Health Effects

Avoided Premature Mortality

Krewski et al. (2009) (adult) 10 11 3.7

Lepeule et al. (2012) (adult) 23 25 8.4

Woodruff et al. (1997) (infant) <1 <1 <1

Avoided Morbidity

Emergency department visits for 

asthma (all ages) 6.1 6.5 2.2

Acute bronchitis (age 8–12) 15 15 5.2

Lower respiratory symptoms (age 

7–14) 180 190 67

Upper respiratory symptoms 

(asthmatics age 9–11) 260 280 95

Minor restricted-activity days 

(age 18–65) 7,500 7,900 2,700

Lost work days (age 18–65) 1,300 1,300 450

Asthma exacerbation (age 6–18) 270 290 98

Hospital admissions—respiratory 

(all ages) 2.8 2.9 1.0

Hospital admissions—

cardiovascular (age > 18) 3.8 4.0 1.4

Non-Fatal Heart Attacks (age 

>18)

Peters et al. (2001) 12 13 4.3

Pooled estimate of 4 studies 1.3 1.4 0.46

1 All estimates are rounded to whole numbers with two significant 

figures. 
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Table VIII.5 Estimated Global Climate Co-benefits of CO2

Reductions for the Final Rule and More or Less Stringent 

Alternatives (millions of 2011$)1

Discount rate and 

statistic

Final Rule More 

Stringent

Alternative

Less 

Stringent 

Alternative

5% (average) $19 $25 $15

3% (average) $66 $87 $54

2.5% (average) $100 $130 $81

3% (95th percentile) $190 $250 $150

1 The social cost of carbon (SC-CO2) values are dollar-year and 

emissions-year specific. SC-CO2 values represent only a partial 

accounting of climate impacts.

The EPA combined this information to perform a benefit-cost 

analysis for this final rule (shown in table VIII.6 and for the 

more and less stringent alternatives—shown in the RIA in the 

docket for this rule).

Table VIII.6 Total Costs, Total Monetized Benefits, and Net 

Benefits of the Final Rule in 2017 for U.S. (millions of 2011$)1

Climate Co-Benefits $66

Air Quality Health 

Benefits $460 to $8102 and $450 to $7903

Total Benefits $530 to $8802 and $520 to $8603

Annualized 

Compliance Costs $684

Net Benefits $460 to $8102 and $450 to $7903

Non-Monetized 

Benefits

Non-monetized climate benefits

Reductions in exposure to ambient NO2

Ecosystem benefits and visibility 

improvement assoc. with reductions in 

emissions of NOX

1 All estimates are rounded to two significant figures.

2 3% discount rate
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3 7% discount rate

4 These costs do not include monitoring, recordkeeping, and 

reporting costs, which are reported separately. See Chapter 4 

of the RIA for this final rule for details and explanation.

There are additional important benefits that the EPA could 

not monetize. Due to current data and modeling limitations, the 

EPA’s estimates of the co-benefits from reducing CO2 emissions do 

not include important impacts like ocean acidification or 

potential tipping points in natural or managed ecosystems. 

Unquantified benefits also include the potential co-benefits 

from reducing direct exposure to NOX as well as from reducing 

ecosystem effects and visibility impairment by reducing NOX

emissions. Based upon the foregoing discussion, it remains clear 

that the benefits of this final action are substantial, and far 

exceed the costs. Additional details on benefits, costs, and net 

benefits estimates are provided in the RIA for this rule.

The EPA provides a qualitative assessment of economic 

impacts associated with electricity price changes to consumers 

that may result from this final rule. This assessment can be 

found in the RIA for this rule in the docket.

Executive Order 13563 directs federal agencies to consider 

the effect of regulations on job creation and employment. 
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According to the Executive Order, “our regulatory system must 

protect public health, welfare, safety, and our environment 

while promoting economic growth, innovation, competitiveness, 

and job creation. It must be based on the best available 

science” (Executive Order 13563, 2011). Although benefit-cost 

analyses that are consistent with standard economic theory have 

not typically included a separate analysis of regulation-induced 

employment impacts, regulatory impact analyses prepared by the 

EPA do include analysis of employment impacts. Employment 

impacts are of particular concern and questions may arise about 

their existence and magnitude. 

States have the responsibility and flexibility to implement 

policies and practices as part of developing SIPs for compliance 

with the emission budgets found in this final rule. Given the 

wide range of approaches that may be used and industries that 

could be affected, quantifying the associated employment impacts 

is difficult. The EPA provides an analysis of employment 

impacts for the final rule in the RIA. The employment analysis 

includes quantitative estimation of employment changes related 

to installation and operation of new pollution control 

equipment, ongoing expenditures on pollution control, changes in 

electricity generation and fuel use, and qualitative discussion 

of employment trends both for the electric power sector and in 
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related fuel markets for the illustrative CSAPR update 

alternative. 

IX. Summary of Changes to the Regulatory Text for the CSAPR 

FIPs and CSAPR Trading Programs

This section describes amendments to the regulatory text in 

the CFR for the CSAPR FIPs and the CSAPR NOX ozone season trading 

program related to the findings and remedy discussed throughout 

this preamble. This section also describes other minor 

corrections to the existing CFR text for the CSAPR FIPs and the 

CSAPR trading programs more generally.

As a preliminary matter, it is worth noting that two of the 

changes made from the proposal to the final rule after 

consideration of comments dramatically simplify the final 

regulatory text as compared to the proposed amendments. First, 

because the final rule does not allow post-2016 allowances 

issued to sources in Georgia to be used for compliance by 

sources in other states, the final regulatory text establishes a 

new, separate CSAPR NOX Ozone Season Group 2 Trading Program in a 

new subpart EEEEE of part 97 for sources subject to this rule 

instead of including those sources in the existing trading 

program in subpart BBBBB of part 97 (which is renamed the CSAPR 

NOX Ozone Season Group 1 Trading Program and will now apply only 
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to sources in Georgia). Second, the final text addresses the use 

of banked 2015 and 2016 allowances to meet compliance 

obligations under this rule by providing for a one-time 

conversion of Group 1 allowances to Group 2 allowances instead 

of creating an ongoing process of “tonnage equivalent” 

determinations. These two simplifying changes largely eliminate 

the need for substantive amendments to the existing Group 1 

trading program regulations other than to address the one-time 

conversion of the banked allowances, as discussed in section 

IX.B of this preamble. Although the changes do result in the 

creation of new subpart EEEEE of part 97, the provisions of the 

new subpart parallel the existing subpart BBBBB provisions with 

only a small number of exceptions. 

A. Amendments to the CSAPR FIPs in Part 52

The CSAPR FIPs related to ozone season NOX emissions are set 

forth in § 52.38(b) as well as CFR sections specific to each 

covered state. The principal amendments to those FIPs made by 

this rule appear in § 52.38(b)(1) and (2) as well as the statespecific CFR sections. The amendments to § 52.38(b)(1) expand 

the overall set of CSAPR trading programs addressing ozone

season NOX emissions to include the new Group 2 trading program 

in subpart EEEEE of part 97 in addition to the current Group 1 

trading program in subpart BBBBB of part 97. The amendments to 
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§ 52.38(b)(2) identify the states whose sources are required 

under the FIPs to participate in each of the respective trading 

programs with regard to their emissions occurring in particular 

years. More specifically, § 52.38(b)(2)(ii) ends the requirement 

to participate in the Group 1 program after the 2016 control 

period for sources in all states whose sources currently 

participate in that program except Georgia, and 

§ 52.38(b)(2)(iii) establishes the requirement for the 22 states 

covered by this rule to participate in the Group 2 program 

starting with the 2017 control period. These changes in 

requirements are replicated, as applicable, in the statespecific CFR sections for the respective states.191

The options for states covered by this rule to modify or 

replace the FIPs implementing the emission reduction 

requirements under this rule are finalized substantially as 

proposed, but generally as new options to modify or replace 

subpart EEEEE requirements instead of as changes to the existing 

options to modify or replace subpart BBBBB requirements. Thus, 

new § 52.38(b)(7), (8), and (9) establish options to replace 

 

191 See §§ 52.54(b) (Alabama), 52.184 (Arkansas), 52.540 (Florida), 52.731(b) 

(Illinois), 52.789(b) (Indiana), 52.840(b) (Iowa), 52.882(b) (Kansas), 

52.940(b) (Kentucky, 52.984(d) (Louisiana), 52.1084(b) (Maryland), 52.1186(e) 

(Michigan), 52,1284 (Mississippi), 52.1326(b) (Missouri), 52.1584(e) (New 

Jersey), 52.1684(b) (New York), 52.1784(b) (North Carolina), 52.1882(b) 

(Ohio), 52.1930 (Oklahoma), 52.2040(b) (Pennsylvania), 52.2140(b) (South 

Carolina), 52.2240(e) (Tennessee), 52.2283(d) (Texas), 52.2440(b) (Virginia), 

52.2540(b) (West Virginia), and 52.2587(e) (Wisconsin).
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allowance allocations for the 2018 control period, to adopt an 

abbreviated SIP revision for control periods in 2019 or later 

years, and to adopt a full SIP revision for control periods in 

later years, respectively. These options generally replicate the 

analogous options in § 52.38(b) (3), (4) and (5) with regard to 

the subpart BBBBB program. To make use of the 2018 option, a 

state must notify the EPA by December 15, 2016 of its intent to 

submit to the EPA by April 1, 2017 a state-approved spreadsheet 

with allowance allocations to existing units. The submission 

deadline for an abbreviated or full SIP affecting 2019 or 2020 

allocations is December 1, 2017. The revised FIPs also clarify 

that in cases where a FIP represents a partial rather than full 

remedy for the state’s obligation to address interstate air 

pollution, an approved SIP revision replacing that FIP would 

also be a partial rather than full remedy for that obligation, 

unless provided otherwise in the EPA’s approval. (As discussed 

in section VI of this preamble, for all covered states except 

Tennessee, the emission reduction requirements established in 

this rule represent partial rather than full remedies to the 

respective states’ interstate transport obligations with regard 

to the 2008 ozone NAAQS.)

The abbreviated and full SIP options under the Group 2 

program do have one important difference from the similar 
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options under the Group 1 program, namely that § 52.38(b)(8)(ii) 

and (9)(ii) include an option for a state to expand 

applicability to include non-EGUs in the state that were 

previously subject to the NOX Budget Trading Program. As 

discussed in section VII.F of this preamble, in conjunction with 

such an expansion, the state may also issue an additional amount 

of allowances. New § 52.38(b)(10)(ii) clarifies that a SIP 

revision requiring a state’s sources – EGUs or non-EGUs – to 

participate in the Group 2 trading program would satisfy the 

state’s obligations to adopt control measures for such sources 

under the NOX SIP Call.

The option discussed in section VII.C.1 of this preamble

for Georgia to replace the FIP requiring its sources to 

participate in the Group 1 program with a SIP revision requiring 

its sources to participate in the Group 2 program is set forth 

in § 52.38(b)(6). This option is generally similar to the full

SIP option under § 52.38(b)(9) for states whose sources are 

already subject to the Group 2 program under a FIP. The 

provisions would allow Georgia to elect (subject to EPA 

approval) to allocate Group 2 allowances for future control 

periods under the SIP revision (even if the EPA had already 

commenced allocations of Group 1 allowances to Georgia sources 

for those control periods) instead of having the EPA convert the 
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Group 1 allowances already allocated for future years into Group 

2 allowances under § 97.526(c)(2), as described later on. 

Approval by the EPA of a Georgia SIP revision of this nature 

would also result in the conversion of all remaining Group 1 

allowances banked from earlier control periods into Group 2 

allowances under § 97.526(c)(3), as also described later on.

New § 52.38(b)(11)(ii) preserves the EPA’s authority to 

carry out conversions of Group 1 allowances to Group 2 

allowances in all compliance accounts (as well as all general 

accounts) following any SIP revision that would otherwise lead 

to automatic withdrawal of a CSAPR FIP with regard to particular 

sources. 

Finally, new § 52.38(b)(12) and (13), respectively, contain 

updatable lists of states with approved SIP revisions to modify 

or replace the CSAPR FIPs requiring participation in either the 

Group 1 program or the Group 2 program. Similar updatable lists 

for states with SIPs related to the NOX Annual, SO2 Group 1, and 

SO2 Group 2 programs are added at new §§ 52.38(a)(8) and 52.39(l) 

and (m), respectively. With the addition of these updatable 

lists, all previously approved and future CSAPR SIP revisions 

will be acknowledged in centralized CFR locations and will no 
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longer be acknowledged through amendments to the individual 

states’ FIPs.192

B. Amendments to the Group 1 trading program provisions in 

subpart BBBBB of part 97

As noted previously, the EPA’s determinations regarding the 

separation of Georgia allowances and the one-time conversion of 

banked allowances dramatically simplify the amendments in the 

final rule compared to the proposed amendments. Most 

significantly, in place of the proposed amendments designed to 

implement the concept of “tonnage equivalents,” which would have 

affected multiple sections of the Group 1 regulations throughout 

subpart BBBBB, the final regulatory text implements the one-time 

conversion of banked Group 1 allowances to Group 2 allowances 

through amendments limited to the Group 1 trading program 

banking provisions in § 97.526. Specifically, new § 97.526(c)(1)

sets forth the schedule and mechanics for a default one-time 

conversion of most Group 1 allowances that remain banked 

 

192 As part of several 2015 actions approving SIP revisions to modify 

allocations of allowances for the 2016 control period to sources in Alabama, 

Kansas, Missouri, and Nebraska, the EPA added language acknowledging the 

approved SIP revisions to the state-specific CFR sections describing the 

CSAPR FIPs for these states. This rule removes those previous additions to 

the state-specific CFR sections. See §§ 52.54 and 52.55 (Alabama), 52.882 

(Kansas), 52.1326 (Missouri), and 52.1428 and 52.1429 (Nebraska). The removed 

acknowledgements are replaced by similar acknowledgements in new 

§§ 52.38(a)(8)(i) and (b)(12)(i) and 52.39(m)(1), and the SIP revisions 

remain effective notwithstanding the removal of the previous 

acknowledgements. 
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following the completion of deductions for compliance for the 

2016 control period. The conversion will be applied to banked 

Group 1 allowances held in any general account and in any

compliance account except a compliance account for a source 

located in Georgia. The owner or operator of a Georgia source 

can retain banked Group 1 allowances for future use in the Group 

1 program simply by keeping the allowances in the source’s 

compliance account as of the conversion date or, alternatively, 

can elect to have banked allowances converted to Group 2 

allowances simply by transferring the allowances from the 

source’s compliance account to a general account prior to the 

conversion date. The conversion factor is determined based on 

the ratio of the total number of banked Group 1 allowances being 

converted to 1.5 times the sum of the variability limits for all 

states covered by the Group 2 program.

Two additional conversion provisions in § 97.526(c)(2) and 

(3) apply only if Georgia submits and the EPA approves a SIP 

revision requiring sources in Georgia to participate in the 

Group 2 program. In that case, under § 97.526(c)(2) the EPA 

would replace the allocations of Group 1 allowances to Georgia 

sources already recorded for future control periods with 

allocations of Group 2 allowances, using a conversion factor 

determined based on the ratio of Georgia’s emissions budget 
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under the Group 1 program to its emissions budget under the 

Group 2 program. Under § 97.526(c)(3) the EPA would convert any 

remaining banked Group 1 allowances from prior control periods 

using a conversion factor based on the ratio of the total number 

of Group 1 allowances being converted to 1.5 times Georgia’s 

variability limit under the Group 2 program. Allowances would be 

converted under these provisions regardless of the accounts in 

which they were held.

Additional provisions of § 97.526(c) address special 

circumstances. Under § 97.526(c)(4), if Group 1 allowances are 

removed for conversion from the compliance account for a source 

located in Florida, North Carolina, or South Carolina, the owner 

or operator can identify to the EPA a different account to 

receive the Group 2 allowances. This provision is necessary 

because sources in these states will not be participating in the 

Group 2 program, and Group 2 allowances cannot be recorded in 

any compliance account other than a compliance account for a 

source with a unit affected under the Group 2 program.

Under § 97.526(c)(5), the EPA may group multiple general 

accounts under common ownership for purposes of performing 

conversion computations. Because allowances are only recorded as 

whole allowances, allowance conversion computations will 

necessarily be rounded to whole allowances. The purpose of the 
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grouping provision is to ensure that, given rounding, the total 

quantities of Group 2 allowances issued are not unduly affected 

by how the Group 1 allowances are distributed across multiple 

general accounts under common ownership, with potentially 

adverse consequences to achievement of the emission reductions 

required under the rule.

There is a possibility under the Group 1 program that some 

new Group 1 allowances could be issued after the conversions to 

Group 2 allowances have already taken place. Under 

§ 97.526(c)(6), the EPA may convert these allowances to Group 2 

allowances as if they had been issued and recorded before the 

general conversions.

Owners and operators of non-Georgia sources generally will 

not be able to retain banked Group 1 allowances (except to the 

extent that they also own or operate sources in Georgia and 

choose to hold Group 1 allowances in the compliance accounts for 

those sources). However, new § 97.526(c)(7) authorizes the use 

of Group 2 allowances to satisfy obligations to hold Group 1 

allowances that might arise after the conversion date, such as 

an obligation to hold additional allowances because of excess 

emissions or for compliance with the assurance provisions. When 

held for this purpose, a single Group 2 allowance may satisfy 
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the obligation to hold more than one Group 1 allowance, as 

though the conversion were reversed. 

Beyond the conversion provisions, additional amendments to 

the Group 1 program align certain deadlines under the Group 1 

program with the comparable deadlines under the new Group 2 

program and the CSAPR annual programs. Although these changes 

were not addressed in the proposal, the EPA expects them to be 

noncontroversial because they impose no additional burdens and 

are designed to simplify program compliance and administration, 

thereby tending to reduce costs for both regulated parties and 

the EPA. Specifically, the date as of which allowances equal to 

emissions in the preceding control period must be held in a 

source’s compliance account under the Group 1 program is being 

amended from December 1 of the year of the control period to 

March 1 of the following year. This change is accomplished 

through an amendment to the definition of “allowance transfer 

deadline” in § 97.502. In addition, the deadlines for providing 

notices regarding the units that are eligible for second-round 

allocations of NUSA allowances and for allocating and recording 

those allowances are being amended from September 15 and 

November 15 of the year of the control period to December 15 of 

the year of the control period and February 15 of the following 

year, respectively. These changes are accomplished through 
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amendments to §§ 97.511(b)(1)(iii) and (iv) and (2)(iii) and 

(iv), 97.512(a)(9)(i) and (b)(9)(i), and 97.521(i).

The final substantive revision to the Group 1 trading 

program in the final regulatory text is in § 97.521(c), where 

the deadline for the EPA to record Group 1 allowances for the 

control periods in 2017 and 2018 is amended to January 3, 2017

(i.e., the first business day after January 1, 2017), as 

discussed in section VII.E.7 of this preamble. 

Additional proposed amendments to the Group 1 trading 

program regulations establishing new amounts for budgets, new 

unit set-asides, Indian country new unit set-asides, and 

variability limits and new deadlines for compliance, allowance 

recordation, monitor certification, and reporting are not being 

finalized because they concern budgets and sources under the new 

Group 2 trading program instead of the Group 1 trading program. 

The substance of the proposed amendments to deadlines is 

reflected in the new Group 2 trading program regulations in 

various subsections of new subpart EEEEE. Similarly, the amounts 

of the budgets, new unit set-asides, Indian country new unit 

set-asides, and variability limits as finalized in this rule are 

reflected in § 97.810 of the new Group 2 trading program 

regulations. 
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C. Group 2 trading program provisions in subpart EEEEE of part 

97

The Group 2 trading program regulations in new subpart 

EEEEE of part 97 generally parallel the existing Group 1 trading 

program regulations in subpart BBBBB of part 97 but reflect the 

amounts of the budgets, new unit set-asides, Indian country new 

unit set-asides, and variability limits established in this 

rule, all of which are set forth in § 97.810. That same section 

sets forth the amounts of a Group 2 budget, new unit set-aside, 

and variability limit which Georgia could adopt in a SIP 

revision that would be approvable under new § 52.38(b)(6). 

Under § 97.806(c)(3)(i), the obligation to hold one Group 2 

allowance for each ton of emissions during the control period 

begins with the 2017 control period, two years later than the 

analogous start date for the Group 1 program. The deadlines for 

certifying monitoring systems under § 97.830(b) and for 

beginning quarterly reporting under § 97.834(d)(1) are similarly 

two years later than the analogous Group 1 program deadlines. 

However, the start date for the assurance provisions for the 

Group 2 program under § 97.806(c)(3)(ii) is May 1, 2017. The 

allowance recordation deadlines under § 97.821 begin generally 

two years later than the comparable recordation deadlines under 

the Group 1 program but reach the same schedule by July 1, 2020, 
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which is the deadline for recordation of allowances for the 

control period in 2024 under both programs. 

Additional differences in the Group 2 program regulations 

relative to the Group 1 program regulations concern the use of 

converted Group 1 allowances. In general, the Group 2 

regulations allow a Group 2 allowance that was allocated to any 

account as a replacement for removed Group 1 allowances to be 

used for all of the purposes for which any other Group 2 

allowance may be used. This is accomplished by adding 

references to § 97.526(c) -- the section under which the 

conversions are carried out -- to the definitions of “allocate” 

and “CSAPR NOX Ozone Season Group 2 allowance” in § 97.802 as 

well as the default order for deducting allowances for 

compliance purposes under § 97.824(c)(2). 

Any Group 2 allowances allocated based on conversion of 

Group 1 allowances allocated for future years – specifically, 

the Group 2 allowances that could be allocated under 

§ 97.526(c)(2) if the EPA approved a SIP revision from Georgia 

requiring Georgia sources to participate in the Group 2 program 

– would also be treated like any other Group 2 allowance for 

purposes of determining shares of responsibility for exceedances 

under the assurance provisions. New paragraph (2)(ii) of the 

definition of “common designated representative’s share” in 
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§ 97.802 establishes this equivalence. However, allocations of 

Group 2 allowances converted from banked Group 1 allowances must 

be excluded for purposes of determining such shares of 

responsibility because such converted allowances do not 

represent allowances allocated from the current control period’s 

emissions budgets. This exclusion is addressed in new paragraph 

(2)(i) of the definition of “common designated representative’s 

share” in § 97.802.

Consistent with the proposal, the EPA has determined that, 

in order to facilitate NOX SIP Call compliance, a state should be 

allowed to expand applicability of the Group 2 program to 

include any sources that previously participated in the NOX

Budget Trading Program, and that the state should be able to 

issue an amount of allowances beyond the CSAPR Update state 

budget if applicability is expanded. The EPA has further 

determined, again consistent with the proposal, that the 

assurance provisions should continue to apply only to emissions 

from the sources subject to the Group 2 program before any such 

expansion. Accordingly, the Group 2 program rules reflect 

certain revisions to the assurance provisions so as to exclude 

any additional units and allowances brought into the program 

through such a SIP revision. 
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In order to exclude the additional units, new definitions 

of “base CSAPR NOX Ozone Season Group 2 unit” and “base CSAPR NOX

Ozone Season Group 2 source” are added in § 97.802 which exclude 

units that would not have been included in the program under 

§ 97.804. All provisions related to the assurance provisions are 

amended to reference only such “base” units and sources. The 

amended provisions are §§ 97.802 (the definitions of “assurance 

account”, “common designated representative”, and “common 

designated representative’s share”), 97.806(c)(2) and (3)(ii), 

and 97.825.193 The exclusion of the additional allowances from 

the determination of shares of responsibility for exceedances of 

the assurance provisions is accomplished through an amendment to 

paragraph (2) of the definition of “common designated 

representative’s share” in § 97.802. 

Finally, amendments to §§ 97.816, 97.818, and 97.820(c)(1) 

and (5) reduce the administrative compliance burden for sources 

in the transition from the Group 1 program to the Group 2 

program by providing that certain one-time or periodic 

submissions made for purposes of compliance with the Group 1 

program will be considered valid for purposes of the Group 2 

 

193 In the provisions in § 52.38(b)(9)(vii) concerning full CSAPR SIP 

revisions, the new definitions of “base” units and sources also have 

been included in the lists of trading program provisions that may be 

removed from a state’s SIP revision and added to a FIP if and when a 

unit is located in Indian country within the state’s borders.
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program as well. The submissions treated in this manner are a 

certificate of representation or notice of delegation submitted 

by a designated representative and an application for a general 

account or notice of delegation submitted by an authorized 

account representative.

C. Administrative appeal procedures in part 78

The final rule amends the administrative appeal provisions 

in part 78 in order to make the procedures of that part 

applicable to determinations of the EPA Administrator under the 

new Group 2 program in subpart EEEEE of part 97 in the same 

manner as the procedures are applicable to similar 

determinations under the other CSAPR trading programs and 

previous EPA trading programs. These amendments concern the list 

in § 78.1(a)(1) of CFR sections (and analogous SIP revisions) 

generally giving rise to determinations subject to the part 78 

procedures; the list in § 78.1(b) of certain determinations that 

are expressly subject to those procedures; the list in § 78.3(a) 

of the types of persons who may seek review under the 

procedures; the list in § 78.3(c) of the required contents of 

petitions for review; the list in § 78.3(d) of matters for which 

a right of review is not provided; and the requirements in 

§ 78.4(a)(1) as to who must sign a filing.
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In addition, consistent with the proposal, under new 

§ 78.1(b)(14)(viii), determinations of the EPA Administrator 

under § 97.526(c) regarding the removal of Group 1 allowances 

from accounts and the allocation in their place of Group 2 

allowances are added to the list of determinations expressly 

subject to the part 78 procedures.

D. Nomenclature changes

The EPA is finalizing the proposal to change the 

nomenclature in the CFR from “Transport Rule” to “Cross-State 

Air Pollution Rule” and from “TR” to “CSAPR”. The change affects 

subparts AAAAA, BBBBB, CCCCC, and DDDDD of part 97, part 78, and 

all the CSAPR FIP sections in part 52 of 40 CFR. 

In order to minimize administrative burden associated with 

the nomenclature changes, the regulations for all of the CSAPR 

trading programs (including the new subpart EEEEE) include 

provisions allowing continued use of the acronym “TR” instead of 

the acronym “CSAPR” in SIP revisions and in submissions by 

regulated parties. Language for this purpose has been included 

in §§ 97.502 (introductory text), 97.516, and 97.520(c)(1) and 

(2).194

 

194 For brevity, in this section and the following section only the citations 

to subpart BBBBB are listed. Unless otherwise indicated, the citations should 

also be understood as representing the analogous provisions in subparts 

AAAAA, CCCCC, DDDDD, and potentially EEEEE which would have the same section 
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E. Technical corrections and clarifications

The final rule also finalizes technical corrections and 

clarifications throughout the sections of parts 52, 78, and 97 

implementing CSAPR, including the sections implementing CSAPR’s 

other three emissions trading programs. The EPA received no 

adverse comments on any of the technical corrections that were 

discussed in the proposal. The final rule contains some 

additional technical corrections that the EPA considers

similarly noncontroversial. 

The most common category of these minor changes consists of 

corrections to cross-references that as originally published 

indicated incorrect locations because of typographical errors or 

indicated correct locations but did not use the correct CFR 

format. In virtually all cases, the intended correct crossreference can be determined from context, but the corrections 

clarify the regulations. Besides the corrections to crossreferences, most of the remaining corrections address 

typographical errors. 

A small number of the CFR changes correct errors that are 

not cross-references or obviously typographical errors. While 

the EPA views these corrections as noncontroversial, and no 

 

numbers as the citations shown but with “4”, “6”, “7”, or “8” respectively, 

substituted for the initial “5” in the section number (e.g., a reference to 

§ 97.502 is intended to also refer to §§ 97.402, 97.602, 97.702, and 97.802).
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adverse comments were received regarding the corrections 

described in the proposal, they merit a short explanation. 

The phrase “with regard to the State” or “the State and” 

has been added in a number of locations in §§ 52.38 and 52.39 

where it was inadvertently omitted. The added phrase clarifies 

that when the EPA approves a state’s SIP revision as modifying 

or replacing provisions in a CSAPR trading program, the 

modification or replacement is effective only with regard to 

that particular state. Correcting the omissions of these phrases 

makes the language concerning SIP revisions consistent for all 

the types of SIP revisions under all the CSAPR trading programs.

The phrase “in part” has been removed from the existing FIP

language in various sections of part 52 for certain states with 

Indian country to clarify that in order to replace a CSAPR FIP 

affecting the sources in these states, a SIP revision must 

fully, not “in part,” correct the SIP deficiency identified by 

the EPA as the basis for the FIP. The intended purpose of the 

words “in part” – specifically, to indicate that approval of a 

state’s SIP revision would apply only to sources in the state 

and would not relieve any sources in Indian country within the 

borders of the state from obligations under the FIP – is already 

served by other language in those FIPs, and is further clarified 

by addition of the phrase “for those sources and units” 
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(referencing the units in the state). The corrections make the 

language in these CSAPR FIPs consistent with the FIP language 

for the remaining CSAPR FIPs that address states with Indian 

country. Analogous changes to the general CSAPR FIP language in 

§§ 52.38(a)(5) and (6) and (b)(5) and (6) and 52.39(f), (i), and 

(j) have removed the phrase “in whole or in part” (referencing 

states without Indian country and states with Indian country, 

respectively) while adding language distinguishing the effect 

that the EPA’s approval of a SIP revision has on sources in the 

state from the lack of effect on any sources in Indian country 

within the borders of the state. 

Language has been added to § 78.1 clarifying that 

determinations by the EPA Administrator under the CSAPR trading 

programs that are subject to the part 78 administrative appeal 

procedures are subject to those procedures whether the source in 

question participates in a CSAPR federal trading program under a 

FIP or a CSAPR state trading program under an approved SIP 

revision. This approach is consistent with the approach taken 

under CAIR FIPs and SIPs and with the EPA’s intent in CSAPR, as 

evidenced by the lack of any proposal or discussion in the CSAPR 

rulemaking regarding deviation from the historical approach

taken under CAIR. This approach is also consistent with 

provisions in §§ 52.38 and 52.39 prohibiting approvable SIP 
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revisions from altering certain provisions of the CSAPR trading 

programs, including the provisions specifying that 

administrative appeal procedures for determinations of the EPA 

Administrator under the trading programs are set forth in part 

78. 

The phrase “steam turbine generator” has been changed to 

“generator” in the list of required equipment in the definition 

of a “cogeneration system” in § 97.502. Absent this correction, 

a combustion turbine in a facility that uses the combustion 

turbine in combination with an electricity generator and heat 

recovery steam generator, but no steam turbine, to produce 

electricity and useful thermal energy would not meet the 

definition of a “cogeneration unit.” The correction clarifies

that a combustion turbine in such a facility should be able to 

qualify as a “cogeneration unit” (assuming it meets other 

relevant criteria) under the CSAPR trading programs, as it could 

under the CAIR trading programs. The consistency of this 

approach with the EPA’s intent in the CSAPR rulemaking is 

evidenced by the lack of any proposal or discussion in that 

rulemaking regarding the concept of narrowing the set of 

facilities qualifying for an applicability exemption as 

cogeneration units. To the contrary, as discussed in the 

preamble to the CSAPR proposal (75 FR 45307, August 2, 2010), 
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the definition of “cogeneration system” was created in CSAPR to 

potentially broaden the set of facilities qualifying for the 

exemption, specifically by facilitating qualification as 

“cogeneration units” for certain units that might not meet the 

required levels of efficiency on an individual basis but that 

operate as components of multi-unit “cogeneration systems” that 

do meet the required levels of efficiency.

The deadline for recording certain allowance allocations 

under § 97.521(j) has been changed from “the date on which” the 

EPA receives the necessary allocation information to “the date 

15 days after the date on which” the EPA receives the 

information. The EPA’s lack of intention in the CSAPR rulemaking 

to establish the deadline as defined prior to the correction is 

evidenced by the impracticability of complying with such a 

deadline. 

A change to a description of a required notice under the 

assurance provisions in § 97.525(b)(2)(iii)(B) has modified the 

phrase “any adjustments” to the phrase “calculations 

incorporating any adjustments” in order to clarify that the 

required notice will identify not only any adjustments made to 

previously noticed calculations, but also the complete 

calculations with (or without) such adjustments. The intended 

meaning is clear from the subsequent provisions that use this 
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notice as the point of reference for the complete calculations 

used in the succeeding administrative procedures.

The final rule also makes several additional technical 

corrections and clarifications. One set of corrections addresses 

the inconsistent treatment in the regulations of allowances 

initially distributed to sources by means of auction mechanisms

instead of zero-cost allocation mechanisms. The original CSAPR 

regulations gave states the option to distribute allowances by 

auction under the provisions of an approved SIP revision, and 

some of the trading program provisions expressly accounted for 

that possibility. See, e.g., §§ 52.38(b)(4) and (5); 97.502 

(definitions of “common designated representative’s share”, 

“CSAPR NOX Ozone Season Group 1 allowance and “record”), and 

97.521. However, other trading program provisions, including 

some that define the allowances that can be used for compliance, 

failed to address the possible use of allowances acquired in an 

auction held pursuant to an approved SIP revision. The technical 

corrections have addressed this inadvertent omission principally 

by adding a definition of “auction” in § 97.502 and by adding 

references to auctioned allowances in provisions describing 

allowances available for use in compliance in §§ 97.506(c)(4)(i) 

and (ii), 97.524(a)(1) and (d), and 97.525(a). Additional 

changes recognizing the possible existence of auctioned 
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allowances have been made in § 97.802 (definitions of “Allowance 

Management System” and Allowance Management System account”) and 

in §§ 97.523(b) and 97.524(c)(2)(i) and (ii). 

Technical corrections have been made to the definitions of 

“heat input”, “heat input rate”, “heat rate”, “maximum heat 

input rate”, and “potential electrical output capacity” in 

§ 97.502 in order to express the definitions in correct and 

clearly identified units of measurement. The corrections clarify 

the regulations and do not change any regulatory requirement for 

any unit.

In a provision in § 97.506(c)(2)(ii) stating the deadline 

to hold allowances for purposes of the assurance provisions, the 

phrase “after such control period” has been corrected to say 

“after the year of such control period”. The change makes the 

deadline as described in this section consistent with the 

deadline as already described correctly in § 97.525(b)(4)(i). 

In § 97.520(c)(5)(v), incorrect references to the 

“designated representative” have been replaced with references 

to the “authorized account representative”. The EPA’s intent to 

use the term “authorized account representative” is clear from 

the cross-references to other paragraphs of § 97.520(c)(5) where 

that term, rather than the term “designated representative”, is 

used.
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In § 97.521, a new paragraph (j) has been added to correct 

the inadvertent omission of any recordation deadline for secondround allocations of allowances from an Indian country NUSA. The 

deadlines in the new paragraph are identical to the recordation 

deadlines for second-round allocations of allowances from a 

NUSA. The EPA’s intent for such deadlines to apply is evident 

from the provisions of §§ 97.511(b)(2) and 97.512(b) which 

establish schedules for the determination of allocations of 

allowances from Indian country NUSAs that are fully synchronized 

with the schedules for determination of allocations of 

allowances from other NUSAs.

The provisions concerning full CSAPR SIP revisions in 

§§ 52.38(a)(5)(iv) and (b)(5)(v) and 52.39(f)(4) and (i)(4) have 

been amended to include more comprehensive lists of the specific 

CSAPR trading program provisions that concern administration of 

Indian country NUSAs and that therefore should not be 

incorporated by a state into a full CSAPR SIP revision. The 

language has also been modified to clarify that mere “references 

to” units in Indian country within a state’s borders are not 

impermissible in such SIP revisions, as long as the SIP 

revisions do not impose any obligations on any units in Indian 

country and as long as the SIP revisions remain substantively 

identical to the federal trading program regulations (except as 
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otherwise expressly permitted) notwithstanding any references to 

units in Indian country.

In the state-specific sections of part 52, the EPA has 

corrected instances from the original CSAPR rulemaking where 

language to address sources and units in Indian country within a 

state’s borders was inadvertently omitted from or included in 

the state-specific FIP language for certain states. 

Specifically, language addressing sources and units in Indian 

country has been added to the FIP language concerning annual NOX

and SO2 emissions for Alabama in §§ 52.54(a)(1) and 52.55(a), 

respectively, and has been removed from the FIP language 

concerning annual NOX and SO2 emissions for Tennessee in 

§§ 52.2240(d)(1) and 52.2241(c)(1), respectively. These 

revisions make the state-specific FIP language consistent with 

the existing general FIP language in §§ 52.38(a)(2) and 52.39(b) 

and (c) making CSAPR FIP requirements applicable to any units in 

Indian country located within the borders of each state listed 

in those sections

In several provisions in part 78, cross-references that 

previously referred to part 97 in its entirety have been 

clarified to refer to only the portions of part 97 related to 

particular non-CSAPR trading programs, consistent with the 

intent of the provisions when promulgated. Specifically, general 
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references to part 97 in §§ 78.1(a)(1) and (b)(6) and 

78.3(a)(3), (c)(7), and (d) have been replaced by references to

either subparts A through J (federal NOX Budget Trading Program); 

subparts AA through II, AAA through III, and AAAA through IIII 

(CAIR); or subparts AAAAA, BBBBB, CCCCC, DDDDD, and EEEEE 

(CSAPR). In several of these sections the more precise reference 

lists have been further clarified through reorganization. For 

the same reason, former appendices A through D to part 97 have 

been redesignated as appendices A through D to subpart E of part 

97, and the cross-references to those appendices in subpart E of 

part 97 have been updated.

In § 78.3(a)(10) and (11), the phrase “and that is 

appealable under § 78.1(a)” has been added in order to correct 

an inadvertent omission and clarify that, like the other 

paragraphs of § 78.3(a), these paragraphs are subject to the 

limits set in § 78.1(a). The provisions of § 78.3(a) concern the 

types of persons who may petition for administrative review, 

while the provisions of § 78.1 address the subject matter over 

which administrative review may be sought. The words being added 

to § 78.3(a)(10) and (11) are present in each of the other 

parallel provisions in § 78.3(a). The EPA’s intent to include 

the words being added is evident from the fact that, without the 

added words, these two paragraphs concerning the persons who may 
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petition for administrative review could be misread as expanding 

the matters for which administrative review may be sought, in 

conflict with the provisions of § 78.1(a).

X. Statutory and Executive Order Reviews

Additional information about these statutes and Executive 

Orders can be found at http://www2.epa.gov/lawsregulations/laws-and-executive-orders. 

A. Executive Order 12866: Regulatory Planning and Review 

and Executive Order 13563: Improving Regulation and Regulatory 

Review

This action is an economically significant regulatory 

action that was submitted to the Office of Management and Budget 

(OMB) for review. Any changes made in response to OMB 

recommendations have been documented in the docket. The EPA 

prepared an analysis of the potential costs and benefits 

associated with this action. This analysis, which is contained 

in the “Regulatory Impact Analysis for the Final Cross-State Air 

Pollution Rule Update for the 2008 Ozone NAAQS”, is available in 

the docket and is briefly summarized in section VIII of this 

preamble. 

Consistent with Executive Orders 12866 and 13563, the EPA 

estimated the costs and benefits for three regulatory control 

alternatives: the final rule EGU NOX ozone season emission 
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budgets and more and less stringent alternatives. This final

action reduces ozone season NOX emissions from EGUs in 22 eastern 

states. Actions taken to comply with the EGU NOX ozone season

emission budgets also reduce emissions of other criteria air 

pollutants, including annual NOX and associated PM2.5

concentrations, and CO2. The benefits associated with these copollutant reductions are referred to as co-benefits, as these 

reductions are not the primary objective of this rule.

The RIA for this rule analyzed illustrative compliance 

approaches for implementing the FIPs. This action establishes

EGU NOX ozone season emission budgets for 22 states and 

implements these budgets via the existing CSAPR NOX ozone season

allowance trading program. 

The EPA evaluated the costs, benefits, and impacts of 

implementing the EGU NOX ozone season emission budgets developed 

using uniform control stringency represented by $1,400 per ton. 

In addition, the EPA also assessed implementation of one more 

and one less stringent alternative EGU NOX ozone season emission 

budgets, developed using uniform control stringency represented 

by $3,400 per ton and $800 per ton, respectively. The EPA 

evaluated the impact of implementing these emission budgets to 

reduce interstate transport for the 2008 ozone NAAQS in 2017. 
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More details for this assessment can be found in the Regulatory 

Impact Analysis in the docket for this rule.

The EPA notes that its analysis of the regulatory control 

alternatives (i.e., the final rule and more and less stringent 

alternatives) is illustrative in nature, in part because the EPA 

implements the EGU NOX emission budgets via a regional NOX ozone 

season allowance trading program. This implementation approach 

provides utilities with the flexibility to determine their own 

compliance path. The EPA’s assessment develops and analyzes one 

possible scenario for implementing the NOX budgets in this action 

and one possible scenario for implementing the more and less 

stringent alternatives. Furthermore, the emission budgets 

evaluated for the CSAPR Update regulatory control alternative in 

this benefit and cost analysis are illustrative because they 

differ somewhat from the budgets finalized in this rule. (The 

budgets for the more and less stringent alternative also differ 

somewhat from the budgets represented by $3,400 per ton and $800 

per ton reported in Table VI.C-1). However, the RIA also reports 

the costs and emissions changes associated with the finalized 

budgets. Further details on the illustrative nature of this 

analysis can be found in the RIA in the docket for this rule.
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The EPA estimates the costs associated with compliance with 

the illustrative regulatory control alternative to be 

approximately $68 million (2011$) annually. These costs 

represent the private compliance cost of reducing NOX emissions 

to comply with the final rule. 

In this analysis, the EPA monetized the estimated benefits 

associated with the reduced exposure to ozone and PM2.5 and cobenefits of decreased emissions of CO2, but was unable to 

quantify or monetize the potential co-benefits associated with 

reducing exposure to NO2 as well as ecosystem effects and reduced 

visibility impairment from reducing NOX emissions. Specifically, 

the EPA estimated combinations of health benefits at discount 

rates of 3 percent and 7 percent (as recommended by the EPA’s 

Guidelines for Preparing Economic Analyses [U.S. EPA, 2014] and 

OMB’s Circular A-4 [OMB, 2003]) and climate co-benefits of CO2

reductions at discount rates of 5 percent, 3 percent, 2.5 

percent, and 3 percent (95th percentile) (as recommended by the 

interagency working group). The EPA estimates the monetized 

ozone-related benefits195 of the final rule to be $370 million to 

 

195 The ozone-related health benefits range is based on applying different 

adult mortality functions (i.e., Smith et al. (2009) and Zanobetti and 

Schwartz (2008)).
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$610 million (2011$) in 2017 and the PM2.5-related co-benefits196

of the rule to be $93 million to $210 million (2011$) using a 3

percent discount rate and $83 million to $190 million (2011$) 

using a 7 percent discount rate. Further, the EPA estimates CO2-

related co-benefits of $54 to $87 million (2011$). Additional 

details on this analysis are provided in the RIA for this final 

rule. Tables X.A-1, X.A-2, and X.A-3 summarize the quantified 

human health and climate benefits and the costs of the rule and 

the more and less stringent control alternatives.

Table X.A-1 Estimated Health Benefits of Projected 2017 

Emissions Reductions for the Final Rule and More or Less 

Stringent Alternatives (millions of 2011$)1,2

Final Rule More Stringent Less Stringent

NOX (as ozone) $370 to $610 $400 to $650 $160 to $270

NOX (as PM2.5)

 3% Discount Rate

 7% Discount Rate

$93 to $210

$83 to $190

$98 to $220

$88 to $200

$34 to $75

$30 to $67

Total

 3% Discount Rate

 7% Discount Rate

$460 to $810

$450 to $790

$500 to $870

$490 to $850

$200 to $340

$190 to $330

1 The health benefits range is based on adult mortality functions 

(e.g., from Krewski et al. (2009) with Smith et al. (2009) to 

Lepeule et al. (2012) with Zanobetti and Schwartz (2008)).

2 All estimates are rounded to two significant figures.

Table X.A-2 Estimated Global Climate Co-benefits of CO2

Reductions for the Final Rule and More or Less Stringent 

Alternatives (millions of 2011$)1

Discount rate and 

statistic

Final Rule More 

Stringent

Less 

Stringent

5% (average) $19 $25 $15

 

196 The PM2.5-related health co-benefits range is based on applying different 

adult mortality functions (i.e., Krewski et al. (2009) and Lepeule et al. 

(2012)).
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3% (average) $66 $87 $54

2.5% (average) $100 $130 $81

3% (95th percentile) $190 $250 $150

1 The social cost of carbon (SC-CO2) values are dollar-year and 

emissions-year specific. SC-CO2 values represent only a partial 

accounting of climate impacts.

The EPA combined this information to perform a benefit-cost 

analysis for this action (shown in table VIII.6 and for the more 

and less stringent alternatives—shown in the RIA in the docket 

for this rule).

Table X.A-3 Total Costs, Total Monetized Benefits, and Net 

Benefits of the Final Rule in 2017 for U.S. (millions of 2011$)1

Climate Co-Benefits $66

Air Quality Health 

Benefits $460 to $8102 and $450 to $7903

Total Benefits $530 to $8802 and $520 to $8603

Annualized Costs

Compliance Costs $684

Net Benefits $460 to $8102 and $450 to $7903

Non-Monetized 

Benefits

Non-monetized climate benefits

Reductions in exposure to ambient NO2

Ecosystem benefits and visibility 

improvement assoc. with reductions in 

emissions of NOX

1 All estimates are rounded to two significant figures. 

2 3% discount rate

3 7% discount rate

4 These costs do not include monitoring, recordkeeping, and 

reporting costs, which are reported separately. See Chapter 4 

of the RIA for this final rule for details and explanation.
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There are additional important benefits that the EPA could 

not monetize. Due to current data and modeling limitations, the 

EPA’s estimates of the co-benefits from reducing CO2 emissions do 

not include important impacts like ocean acidification or 

potential tipping points in natural or managed ecosystems. 

Unquantified benefits also include co-benefits from reducing 

direct exposure to NO2 as well as from reducing ecosystem effects 

and visibility impairment from reducing NOX emissions. Based upon 

the foregoing discussion, it remains clear that the benefits of 

this action are substantial, and far exceed the costs. 

Additional details on benefits, costs, and net benefits 

estimates are provided in the RIA for this final rule.

B. Paperwork Reduction Act (PRA)

The information collection activities in this rule have 

been submitted for approval to the OMB under the Paperwork 

Reduction Act (PRA), 44 U.S.C. 3501 et seq. The Information 

Collection Request (ICR) document that the EPA prepared has been 

assigned EPA ICR number 2391.05. You can find a copy of the ICR 

in the docket for this rule, and it is briefly summarized here. 

The information collection requirements are not enforceable 

until OMB approves them.
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The information generated by information collection 

activities under CSAPR is used by the EPA to ensure that 

affected facilities comply with the emission limits and other 

requirements. Records and reports are necessary to enable the

EPA or states to identify affected facilities that may not be in 

compliance with the requirements. The recordkeeping requirements 

require only the specific information needed to determine 

compliance. These recordkeeping and reporting requirements are 

established pursuant to CAA sections 110(a)(2)(D) and (c) and 

301(a) (42 U.S.C. 7410(a)(2)(D) and (c) and 7601(a)) and are 

specifically authorized by CAA section 114 (42 U.S.C. 7414). 

Reported data may also be used for other regulatory and 

programmatic purposes. All information submitted to the EPA for 

which a claim of confidentiality is made will be safeguarded 

according to EPA policies in 40 CFR part 2, subpart B, 

Confidentiality of Business Information. 

All of the EGUs that are subject to changed information 

collection requirements under this rule are already subject to 

information collection requirements under CSAPR. Most of these 

EGUs also are already subject to information collection 

requirements under the Acid Rain Program (ARP) established under 

Title IV of the 1990 Clean Air Act Amendments. Both CSAPR and 

the ARP have existing approved ICRs: EPA ICR Number 2391.03/OMB 
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Control Number 2060-0667 (CSAPR) and EPA ICR Number 1633.16/OMB 

Control Number 2060-0258 (ARP). The burden and costs of the 

information collection requirements covered under the CSAPR ICR 

are estimated as incremental to the information collection 

requirements covered under the ARP ICR. Most of the information 

used to estimate burden and costs in this ICR was developed for 

the existing CSAPR and ARP ICRs. 

This rule changes the universe of sources subject to 

certain information collection requirements under CSAPR but does

not change the substance of any CSAPR information collection 

requirements. The burden and costs associated with the changes 

in the reporting universe are estimated as reductions from the 

burden and costs under the existing CSAPR ICR. (This rule does

not change any source’s information collection requirements with 

respect to the ARP.) The EPA intends to incorporate the burden 

and costs associated with the changes in the reporting universe 

under this rulemaking into the next renewal of the CSAPR ICR.

Respondents/affected entities: Entities potentially 

affected by this action are EGUs in the states of Florida, 

Kansas, North Carolina, and South Carolina that meet the 

applicability criteria for the CSAPR NOX ozone season Group 1 and 

Group 2 trading programs in 40 CFR 97.504 and 97.804. 
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Respondent’s obligation to respond: Mandatory (sections 

110(a), 110(c), and 301(a) of the Clean Air Act).

Estimated number of respondents: 138 sources in Florida, 

Kansas, North Carolina, and South Carolina with one or more 

EGUs.

Frequency of response: Quarterly, occasionally. 

Total estimated burden: reduction of 12,879 hours (per 

year). Burden is defined at 5 CFR 1320.3(b).

Total estimated cost: reduction of $1,347,291 (per year), 

includes reduction of $409,786 operation and maintenance costs. 

The burden and cost estimates above reflect the reduction 

in burden and cost for Florida sources with EGUs that would no 

longer be required to report NOX mass emissions and heat input 

data for the ozone season to the EPA under the rule and that are 

not subject to similar information collection requirements under 

the Acid Rain Program. Because these EGUs would no longer need 

to collect NOX emissions or heat input data under 40 CFR part 75, 

the estimates above also reflect the reduction in burden and 

cost to collect and quality assure these data and to maintain 

the associated monitoring equipment. 

The EPA estimates that the rule causes no change in 

information collection burden or cost for EGUs in Kansas that 

would be required to report NOX mass emissions and heat input 
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data for the ozone season to the EPA or for EGUs in North 

Carolina or South Carolina that would no longer be required to 

report NOX emissions and heat input data for the ozone season to 

the EPA. The EGUs in Kansas, North Carolina, and South Carolina 

already are and would remain subject to requirements to report 

NOX mass emissions and heat input data for the entire year to the 

EPA under the CSAPR NOX Annual Trading Program, and the 

requirements related to ozone season reporting are a subset of 

the requirements related to annual reporting. Similarly, the EPA 

estimates that the rule causes no change in information 

collection burden or cost for EGUs in Florida that are subject 

to the Acid Rain Program because of the close similarity between 

the information collection requirements under CSAPR and under 

the Acid Rain Program. The EPA also estimates that the rule 

causes no change in information collection burden or cost for 

EGUs in the states have been covered by the current CSAPR NOX

Ozone Season Group 1 Trading Program and starting in 2017 will 

be covered by the new CSAPR NOX Ozone Season Group 2 Trading 

Program because the information collection requirements 

applicable to an individual source under the two programs are 

identical.

The comments received in response to the proposal included 

no comments regarding the ICR for this final rule, but did 
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include one comment regarding the existing CSAPR ICR. The 

comment noted that the existing CSAPR ICR should have been 

renewed in order to remain valid past July 31, 2014, but that 

OMB had not acted on the EPA’s renewal submission as of that 

date. The commenter is correct as to those facts, but the 

commenter’s apparent suggestion that the existing CSAPR ICR may 

have lapsed as of that date is incorrect. The EPA made a timely 

renewal submission for that ICR, and an agency may continue to 

collect information pursuant to a previously approved ICR if a 

timely renewal submission for the ICR has been made, pending OMB 

action on the submission. 5 CFR 1320.10(e)(2). Further, prior to 

the date when the comment was submitted, OMB did in fact approve 

the EPA’s renewal submission for the CSAPR ICR.

More information on the ICR analysis is included in the 

docket for this rule.

An agency may not conduct or sponsor, and a person is not 

required to respond to, a collection of information unless it 

displays a currently valid OMB control number. The OMB control 

numbers for the EPA’s regulations in 40 CFR are listed in 40 CFR 

part 9. When OMB approves this ICR, the Agency will announce 

that approval in the Federal Register and publish a technical 

amendment to 40 CFR part 9 to display the OMB control number for 
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the approved information collection activities contained in this 

final rule.

C. Regulatory Flexibility Act (RFA)

I certify that this action will not have a significant 

economic impact on a substantial number of small entities under 

the RFA. The small entities subject to the requirements of this 

action are small businesses, small organizations, and small 

governmental jurisdictions. 

The EPA has lessened the impacts for small entities by 

excluding all units 25 MWe or less. This exclusion, in addition 

to the exemptions for cogeneration units and solid waste 

incineration units, eliminates the burden of higher costs for a 

substantial number of small entities located in the 22 states 

for which the EPA is finalizing FIPs.

Within these states, the EPA identified a total of 365

potentially affected EGUs (i.e., greater than 25 MWe) warranting 

examination in its RFA analysis. Of these, the EPA identified 30

potentially affected EGUs that are owned by 11 entities that met 

the Small Business Administration’s criteria for identifying 

small entities. The EPA estimated the annualized net compliance 

cost to these 11 small entities to be approximately $23.9

million in 2017. Of the 11 small entities considered in this 
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analysis, 1 entity may experience compliance costs greater than 

1 or 3 percent of generation revenues in 2017. The EPA notes

that this entity is located in a cost of service market, where 

the agency typically expects that entities should be able to 

recover all of their costs of complying with the final rule. 

The EPA has concluded that there is no significant economic 

impact on a substantial number of small entities (no SISNOSE) 

for this rule. Details of this analysis are presented in the 

RIA, which is in the public docket.

D. Unfunded Mandates Reform Act (UMRA)

This action does not contain an unfunded mandate of $100

million or more as described in UMRA, 2 U.S.C. 1531–1538, and 

does not significantly or uniquely affect small governments. The 

EPA has determined that this rule does not contain a Federal 

mandate that may result in expenditures of $100 million or more 

for State, local, and tribal governments, in the aggregate, or 

the private sector in any one year. According to the EPA’s 

analysis, the total net economic impact on government owned 

entities (state- and municipality-owned utilities and 

subdivisions) is expected to be $20.5 million in 2017. Note that 

the EPA expects the rule to potentially have an impact on 11 

municipality-owned entities and 1 state-owned entity. This 

analysis does not examine potential indirect economic impacts 
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associated with the rule, such as employment effects in 

industries providing fuel and pollution control equipment, or 

the potential effects of electricity price increases on 

government entities. For more information on the estimated 

impact on government entities, refer to the RIA, which is in the 

public docket.

E. Executive Order 13132: Federalism

This action does not have federalism implications. It will 

not have substantial direct effects on the states, on the 

relationship between the national government and the states, or 

on the distribution of power and responsibilities among the 

various levels of government.

F. Executive Order 13175: Consultation and Coordination with 

Indian Tribal Governments

This action has tribal implications. However, it will 

neither impose substantial direct compliance costs on federally 

recognized tribal governments, nor preempt tribal law.

This final action implements EGU NOX ozone season emissions 

reductions in 22 eastern states. However, at this time, none of 

the existing or planned EGUs affected by this rule are owned by 

tribes or located in Indian country. This action may have tribal 

implications if a new affected EGU is built in Indian country. 
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Additionally, tribes have a vested interest in how this rule 

affects air quality. 

In developing the original CSAPR, which was published on 

August 8, 2011 to address interstate transport of ozone 

pollution under the 1997 ozone NAAQS,197 the EPA consulted with 

tribal officials under the EPA Policy on Consultation and 

Coordination with Indian Tribes early in the process of 

developing that regulation to permit them to have meaningful and 

timely input into its development. A summary of that 

consultation is provided in 76 FR 48346 (August 8, 2011). 

The EPA received comments from several tribal commenters 

regarding the availability of CSAPR allowance allocations to new 

units in Indian country. The EPA responded to these comments by 

instituting Indian country new unit set-asides in the final 

CSAPR. In order to protect tribal sovereignty, these set-asides 

are managed and distributed by the federal government regardless 

of whether CSAPR in the adjoining or surrounding state is 

implemented through a FIP or SIP. While there are no existing 

affected EGUs in Indian country covered by the CSAPR Update, the 

Indian country set-asides will ensure that any future new units 

built in Indian country will be able to obtain the necessary 

 

197 CSAPR also addressed interstate transport of fine particulate matter 

(PM2.5) under the 1997 and 2006 PM2.5 NAAQS.
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allowances. The CSAPR Update maintains the Indian country new 

unit set-aside and adjusts the amounts of allowances in each 

set-aside according to the same methodology of the original 

CSAPR rule, with one small correction. 

The EPA consulted with tribal officials under the EPA 

Policy on Consultation and Coordination with Indian Tribes early 

in the process of developing this regulation to permit them to 

have meaningful and timely input into its development. The EPA 

informed tribes of its development of this rule on a regularly 

scheduled National Tribal Air Association – EPA air policy 

monthly conference call (January 29, 2015) and gave an overview 

of the proposed rule on a separate call (November 17, 2015). In 

December 2015, the EPA offered consultation to tribal officials 

under the EPA Policy on Consultation and Coordination with 

Indian Tribes to permit them to have meaningful and timely input 

into the development of the final rule. The EPA sent letters to 

all 566 federally-recognized tribes informing them of this 

action, offering consultation and requesting comment on this 

rulemaking. Letters were also sent via email to tribal air 

staff. The EPA received no requests for consultation on this 

rule.

As part of the public comment process, we received one 

letter from the National Tribal Air Association (NTAA) that 
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highlighted the need for an Indian country new unit set aside 

for the Poarch Band of Creek Indians in Alabama. EPA made this 

adjustment in the final rule and addressed the NTAA’s other 

comments in the Response to Comments document, available in the 

docket, for this final action. 

In order to help tribes to better understand this final 

action and how it could affect their communities, the EPA is

providing an interactive map of affected sources and Indian 

country. This map will be available online. The EPA will 

continue to engage with tribes as part of the outreach strategy 

for this final rule.

G. Executive Order 13045: Protection of Children from

Environmental Health Risks and Safety Risks

The EPA interprets Executive Order 13045 (62 FR 19885, 

April 23, 1997) as applying only to those regulatory actions 

that concern health or safety risks, such that the analysis 

required under section 5–501 of the Order has the potential to 

influence the regulation. This action is not subject to 

Executive Order 13045 because it does not involve decisions on 

environmental health or safety risks that may disproportionately 

affect children. However, the EPA believes that the ozone-
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related benefits, PM2.5-related co-benefits, and CO2-related cobenefits would further improve children’s health. 

H. Executive Order 13211: Actions Concerning Regulations That 

Significantly Affect Energy Supply, Distribution or Use

This action, which is a significant regulatory action under 

Executive Order 12866, is likely to have a significant effect on 

the supply, distribution, or use of energy. The EPA noted in the 

proposal that one aspect of this rule that could affect energy 

supply, disposition, or use was the EPA’s proposing and taking 

comment on a range of options with respect to use of 2015 

vintage and 2016 vintage CSAPR NOX ozone season allowances for 

compliance with 2017 and later ozone season requirements. The 

EPA did not finalize actions that could have eliminated the 

allowance bank but is converting the 2015 and 2016 vintage CSAPR 

allowances to a currency that can be used for compliance in 2017 

and beyond. The EPA prepared a Statement of Energy Effects for 

the regulatory control alternative as follows: the agency 

estimates no change in retail electricity prices on average 

across the contiguous U.S. in 2017 as a result of this rule, and 

a much less than 1 percent reduction in coal-fired electricity 

generation in 2017 as a result of this rule. The EPA projects 

that utility power sector delivered natural gas prices will 

change by less than 1 percent in 2017. For more information on 
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the estimated energy effects, refer to the RIA, which is in the 

public docket.

I. National Technology Transfer and Advancement Act (NTTAA)

This rulemaking does not involve technical standards. 

J. Executive Order 12898: Federal Actions to Address 

Environmental Justice in Minority Populations and Low-Income 

Populations

The EPA believes that this action does not have 

disproportionately high and adverse human health or 

environmental effects on minority populations, low-income 

populations and/or indigenous peoples, as specified in Executive 

Order 12898 (59 FR 7629, February 16, 1994).

The EPA notes that this action updates CSAPR to reduce 

interstate ozone transport with respect to the 2008 ozone NAAQS. 

This rule uses the EPA’s authority in CAA section 110(a)(2)(d) 

to reduce NOX pollution that significantly contributes to 

downwind ozone nonattainment or maintenance areas. As a result, 

the rule will reduce exposures to ozone in the most-contaminated 

areas (i.e., areas that are not meeting the 2008 ozone NAAQS). 

In addition, the rule separately identifies both nonattainment 

areas and maintenance areas. This requirement reduces the 

likelihood that areas close to the level of the standard will 

exceed the current health-based standards in the future. The EPA 
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implements these emission reductions using the CSAPR EGU NOX

ozone season emissions trading program with assurance 

provisions.

The EPA recognizes that some communities have voiced 

concerns in the past about emission trading and the potential 

for emission increases in any location from an environmental 

justice perspective. The EPA believes that CSAPR mitigated these 

concerns and that this final rule, which applies the CSAPR 

framework to reduce interstate ozone pollution and implement 

these reductions, will also alleviate community concerns. 

Ozone pollution from power plants has both local and 

regional components: part of the pollution in a given location—

even in locations near emission sources—is due to emissions from 

nearby sources, and part is due to emissions that travel 

hundreds of miles and mix with emissions from other sources.

It is important to note that the section of the Clean Air 

Act providing authority for this rule, section 110(a)(2)(D), 

unlike some other provisions, does not dictate levels of control 

for particular facilities. In developing the original CSAPR, the 

EPA considered several alternative implementation approaches, 

and found that none of the approaches could ensure that all 

affected power plants would decrease their emissions. For 

example, under an alternative approach that required direct 
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emission controls on individual facilities, the emission rate 

for each facility would have been limited but individual 

facilities could emit more pollution overall by increasing their 

power output.198

CSAPR allows sources to trade allowances with other sources 

in the same or different states while firmly limiting any 

emissions shifting that may occur by requiring a strict emission 

ceiling in each state (the assurance level). In addition, 

assurance provisions in the existing CSAPR regulations that will 

remain in place under this rule outline the allowance surrender 

penalties for failing to meet the assurance level; there are 

additional allowance penalties as well as financial penalties 

for failing to hold an adequate number of allowances to cover 

emissions. 

This approach reduces EGU emissions in each state that 

significantly contribute to downwind nonattainment or 

maintenance areas, while allowing power companies to adjust 

generation as needed and ensure that the country’s electricity 

needs will continue to be met. The EPA maintains that the 

existence of these assurance provisions, including the penalties 

 

198 76 FR 48348 (August 8, 2011)
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imposed when triggered, will ensure that state emissions will 

stay below the level of the budget plus variability limit. 

In addition, all sources must hold enough allowances to 

cover their emissions. Therefore, if a source emits more than 

its allocation in a given year, either another source must have 

used less than its allocation and be willing to sell some of its 

excess allowances, or the source itself had emitted less than 

its allocation in one or more previous years (i.e., banked, or 

saved, allowances for future use). 

In summary, the CSAPR addresses community concerns about 

localized hot spots and reduces ambient concentrations of 

pollution where they are most needed by sensitive and vulnerable 

populations by: considering the science of ozone transport to 

set strict state emission budgets to reduce significant 

contributions to ozone nonattainment and maintenance (i.e., the 

most polluted) areas; implementing air quality-assured trading; 

requiring any emissions above the level of the allocations to be 

offset by emission decreases; and imposing strict penalties for 

sources that contribute to a state’s exceedance of its budget 

plus variability limit. In addition, it is important to note 

that nothing in this final rule allows sources to violate their 

title V permit or any other federal, state, or local emissions 

or air quality requirements.
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It is also important to note that CAA section 110(a)(2)(D), 

which addresses transport of criteria pollutants between states, 

is only one of many provisions of the CAA that provide the EPA, 

states, and local governments with authorities to reduce 

exposure to ozone in communities. These legal authorities work 

together to reduce exposure to these pollutants in communities, 

including for minority, low-income, and tribal populations, and 

provide substantial health benefits to both the general public 

and sensitive sub-populations. 

The EPA informed communities of its development of this 

rule on an Environmental Justice community call (January 28, 

2015) and two National Tribal Air Association – EPA air policy 

conference calls (January 29, 2015 and November 17, 2015). The 

EPA will continue to engage with communities and tribes as part 

of the outreach strategy for this final rule.

K. Congressional Review Act (CRA)

This action is subject to the CRA, and the EPA will submit 

a rule report to each House of the Congress and to the 

Comptroller General of the United States. This action is a 

“major rule” as defined by 5 U.S.C. 804(2).

L. Judicial Review and Determinations under Section 307(b)(1) 

and (d)
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Section 307(b)(1) of the CAA indicates which Federal Courts

of Appeal have venue for petitions of review of final actions by 

the EPA. This section provides, in part, that petitions for 

review must be filed in the Court of Appeals for the District of 

Columbia Circuit if (i) the agency action consists of 

“nationally applicable regulations promulgated, or final action 

taken, by the Administrator,” or (ii) such action is locally or 

regionally applicable, if “such action is based on a 

determination of nationwide scope or effect and if in taking 

such action the Administrator finds and publishes that such 

action is based on such a determination.”

The EPA finds that any final action related to this 

rulemaking is “nationally applicable” and of “nationwide scope 

and effect” within the meaning of section 307(b)(1). Through 

this rulemaking action, the EPA interprets section 110 of the 

CAA, a provision which has nationwide applicability. In 

addition, the rule applies to 22 States. The rule is also based 

on a common core of factual findings and analyses concerning the 

transport of pollutants between the different states subject to 

it. For these reasons, the Administrator determines that this

final action is of nationwide scope and effect for purposes of 

section 307(b)(1). Thus, pursuant to section 307(b) any 

petitions for review of any final actions regarding the 
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rulemaking would be filed in the Court of Appeals for the 

District of Columbia Circuit within 60 days from the date any 

final action is published in the Federal Register. 

In addition, pursuant to sections 307(d)(1)(C) and 

307(d)(1)(V) of the CAA, the Administrator determines that this 

action is subject to the provisions of section 307(d). CAA 

section 307(d)(1)(B) provides that section 307(d) applies to, 

among other things, to “the promulgation or revision of an 

implementation plan by the Administrator under CAA section 

110(c).” 42 U.S.C. 7407(d)(1)(B). Under section 307(d)(1)(V), 

the provisions of section 307(d) also apply to “such other 

actions as the Administrator may determine.” 42 U.S.C. 

7407(d)(1)(V). The agency has complied with procedural 

requirements of CAA section 307(d) during the course of this 

rulemaking.
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List of Subjects in 40 CFR Parts 52, 78, and 97.

Environmental protection, Administrative practice and 

procedure, Air pollution control, Electric power plants, 

Incorporation by reference, Intergovernmental relations, 

Nitrogen oxides, Ozone, Reporting and recordkeeping 

requirements.

Dated:

Gina McCarthy,

Administrator.
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For the reasons stated in the preamble, parts 52, 78, and 97 of 

chapter I of title 40 of the Code of Federal Regulations are 

amended as follows:

PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS 

■ 1. The authority citation for part 52 continues to read as 

follows:

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

§§ 52.38, 52.39, 52.54, 52.55, 52.584, 52.585, 52.731, 52.732, 

52.789, 52.790, 52.840, 52.841, 52.882, 52.883, 52.940, 52.941, 

52.1084, 52.1085, 52.1186, 52.1187, 52.1240, 52.1241, 52.1326, 

52.1327, 52.1428, 52.1429, 52.1584, 52.1585, 52.1684, 52.1685, 

52.1784, 52.1785, 52.1882, 52.1883, 52.2040, 52.2041, 52.2140, 

52.2141, 52.2240, 52.2241, 52.2283, 52.2284, 52.2440, 52.2441, 

52.2540, 52.2541, 52.2587, and 52.2588 [Amended]

■ 2. Sections 52.38, 52.39, 52.54, 52.55, 52.584, 52.585, 

52.731, 52.732, 52.789, 52.790, 52.840, 52.841, 52.882, 52.883, 

52.940, 52.941, 52.1084, 52.1085, 52.1186, 52.1187, 52.1240, 

52.1241, 52.1326, 52.1327, 52.1428, 52.1429, 52.1584, 52.1585, 

52.1684, 52.1685, 52.1784, 52.1785, 52.1882, 52.1883, 52.2040, 

52.2041, 52.2140, 52.2141, 52.2240, 52.2241, 52.2283, 52.2284, 

52.2440, 52.2441, 52.2540, 52.2541, 52.2587, and 52.2588 are 

amended by removing the text “TR” wherever it appears and adding 

in its place the text “CSAPR”.
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Subpart A—General Provisions

§ 52.36 [Amended]

■ 3. Section 52.36, paragraph (e)(1)(i) is amended by removing 

the text “paragraphs (a) through (e)” and adding in its place 

the text “paragraphs (a) through (c)”.

■ 4. Section 52.38 is amended by:

a. Revising the section heading;

b. After the text “NOX Ozone Season” wherever it appears 

adding the text “Group 1”;

c. In paragraph (a)(2), removing the words “the sources in” 

and adding in their place the words “sources in each of”;

d. In paragraph (a)(3)(ii), after the text “2016, of” 

adding the word “the”;

e. In paragraph (a)(3)(v)(A), removing the word “paragraph” 

and adding in its place the word “paragraphs”;

f. In paragraph (a)(4)(i)(B), table heading, removing the 

word “annual” and adding in its place the word “Annual”, and 

removing the word “administrator” and adding in its place the 

words “the Administrator”;

g. In paragraph (a)(4)(ii), removing the words “section 

for” and adding in their place the words “section applicable 

to”;

h. Revising paragraph (a)(5) introductory text;
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i. In paragraph (a)(5)(i)(B), table heading, removing the 

word “annual” and adding in its place the word “Annual”, and 

removing the word “administrator” and adding in its place the 

words “the Administrator”;

j. Revising paragraphs (a)(5)(iv) and (v);

k. In paragraph (a)(5)(vi), removing the text “paragraphs 

(a)(5)(i) and (ii)” and adding in its place the text “paragraph 

(a)(5)(i)”;

l. Revising paragraph (a)(6);

m. In paragraph (a)(7), removing the words “a State” and 

adding in their place the words “the State”;

n. Adding paragraph (a)(8);

o. Revising paragraphs (b)(1) and (2);

p. In paragraph (b)(3) introductory text, removing the text 

“paragraph (b)(2)” and adding in its place the text “paragraph 

(b)(2)(i) or (ii)”;

q. In paragraph (b)(3)(ii), after the text “2016, of” 

adding the word “the”;

r. In paragraph (b)(3)(v)(A), removing the word “paragraph” 

and adding in its place the word “paragraphs”;

s. In paragraph (b)(4) introductory text, removing the text 

“paragraph (b)(2)” and adding in its place the text “paragraph 

(b)(2)(i)”;
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t. Revising paragraph (b)(4)(i);

u. In paragraph (b)(4)(ii) introductory text, after the 

words “with regard to” adding the words “the State and”;

v. In paragraph (b)(4)(ii)(B), table heading, removing the 

word “administrator” and adding in its place the words “the 

Administrator”;

w. Revising paragraph (b)(5) introductory text, paragraph 

(b)(5)(i), and paragraph (b)(5)(ii) introductory text;

x. In paragraph (b)(5)(ii)(B), removing the words “auction 

of” and adding in their place the words “auctions of”, and 

removing from the table heading the word “administrator” and 

adding in its place the words “the Administrator”;

y. In paragraph (b)(5)(ii)(C), removing the words “any 

control” and adding in their place the words “any such control”;

z. In paragraph (b)(5)(iii), after the words “May adopt”

adding a comma;

aa. Revising paragraphs (b)(5)(v) through (vii), (6), and 

(7); and

bb. Adding paragraphs (b)(8) through (13).

The revisions and additions read as follows:

§ 52.38 What are the requirements of the Federal Implementation 

Plans (FIPs) for the Cross-State Air Pollution Rule (CSAPR) 

relating to emissions of nitrogen oxides?
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(a) * * *

(5) Notwithstanding the provisions of paragraph (a)(1) of 

this section, a State listed in paragraph (a)(2) of this section 

may adopt and include in a SIP revision, and the Administrator 

will approve, as correcting the deficiency in the SIP that is 

the basis for the CSAPR Federal Implementation Plan set forth in 

paragraphs (a)(1) through (4) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State), regulations that are 

substantively identical to the provisions of the CSAPR NOX Annual 

Trading Program set forth in §§ 97.402 through 97.435 of this 

chapter, except that the SIP revision:

* * * * *

(iv) Must not include any of the requirements imposed on 

any unit in Indian country within the borders of the State in 

the provisions in §§ 97.402 through 97.435 of this chapter and 

must not include the provisions in §§ 97.411(b)(2) and 

(c)(5)(iii), 97.412(b), and 97.421(h) and (j) of this chapter, 

all of which provisions will continue to apply under any portion 

of the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision;

(v) Provided that, if and when any covered unit is located 

in Indian country within the borders of the State, the 
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Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§ 97.402 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.406(c)(2), and 97.425 of this chapter and the 

portions of other provisions of subpart AAAAA of part 97 of this 

chapter referencing these sections and may modify any portion of 

the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

* * * * *

(6) Following promulgation of an approval by the 

Administrator of a State’s SIP revision as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 

Implementation Plan set forth in paragraphs (a)(1) through (4) 

of this section for sources in the State, the provisions of 

paragraph (a)(2) of this section will no longer apply to sources 

in the State, unless the Administrator’s approval of the SIP 

revision is partial or conditional, and will continue to apply 

to sources in any Indian country within the borders of the 

State, provided that if the CSAPR Federal Implementation Plan 

was promulgated as a partial rather than full remedy for an 

obligation of the State to address interstate air pollution, the 

SIP revision likewise will constitute a partial rather than full 
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remedy for the State’s obligation unless provided otherwise in 

the Administrator’s approval of the SIP revision.

* * * * *

(8) The following States have SIP revisions approved by the 

Administrator under paragraph (a)(3), (4), or (5) of this 

section:

(i) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (a)(3) of this section 

as replacing the CSAPR NOX Annual allowance allocation provisions 

in § 97.411(a) of this chapter with regard to the State and the 

control period in 2016: Alabama, Kansas, Missouri, and Nebraska.

(ii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (a)(4) of this 

section as replacing the CSAPR NOX Annual allowance allocation 

provisions in §§ 97.411(a) and (b)(1) and 97.412(a) of this 

chapter with regard to the State and the control period in 2017 

or any subsequent year: Kansas and Missouri.

(iii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (a)(5) of this 

section as correcting the SIP’s deficiency that is the basis for 

the CSAPR Federal Implementation Plan set forth in paragraphs 

(a)(1) through (4) of this section with regard to sources in the 
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State (but not sources in any Indian country within the borders 

of the State): Alabama.

(b)(1) The CSAPR NOX Ozone Season Group 1 Trading Program 

provisions and the CSAPR NOX Ozone Season Group 2 Trading Program 

provisions set forth respectively in subparts BBBBB and EEEEE of

part 97 of this chapter constitute the CSAPR Federal 

Implementation Plan provisions that relate to emissions of NOX

during the ozone season, defined as May 1 through September 30 

of a calendar year.

(2)(i) The provisions of subpart BBBBB of part 97 of this 

chapter apply to sources in each of the following States and 

Indian country located within the borders of such States with 

regard to emissions in 2015 and each subsequent year: Georgia.

(ii) The provisions of subpart BBBBB of part 97 of this 

chapter apply to sources in each of the following States and 

Indian country located within the borders of such States with 

regard to emissions occurring in 2015 and 2016 only: Alabama, 

Arkansas, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, 

Maryland, Michigan, Mississippi, Missouri, New Jersey, New York, 

North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, 

Tennessee, Texas, Virginia, West Virginia, and Wisconsin.

(iii) The provisions of subpart EEEEE of part 97 of this 

chapter apply to sources in each of the following States and 
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Indian country located within the borders of such States with 

regard to emissions occurring in 2017 and each subsequent year: 

Alabama, Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, 

Louisiana, Maryland, Michigan, Mississippi, Missouri, New 

Jersey, New York, Ohio, Oklahoma, Pennsylvania, Tennessee, 

Texas, Virginia, West Virginia, and Wisconsin.

* * * * *

(4) * * *

(i) The State may adopt, as applicability provisions 

replacing the provisions in § 97.504(a)(1) and (2) of this 

chapter with regard to the State, provisions substantively 

identical to those provisions, except that the words “more than 

25 MWe” are replaced, wherever such words appear, by words 

specifying a uniform lower limit on the amount of megawatts that 

is not greater than the amount specified by the words “more than 

25 MWe” and is not less than the amount specified by the words 

“15 MWe or more”; and

* * * * *

(5) Notwithstanding the provisions of paragraph (b)(1) of 

this section, a State listed in paragraph (b)(2)(i) of this 

section may adopt and include in a SIP revision, and the 

Administrator will approve, as correcting the deficiency in the 

SIP that is the basis for the CSAPR Federal Implementation Plan 
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set forth in paragraphs (b)(1), (2)(i), (3), and (4) of this 

section with regard to sources in the State (but not sources in 

any Indian country within the borders of the State), regulations 

that are substantively identical to the provisions of the CSAPR 

NOX Ozone Season Group 1 Trading Program set forth in §§ 97.502 

through 97.535 of this chapter, except that the SIP revision:

(i) May adopt, as applicability provisions replacing the 

provisions in § 97.504(a)(1) and (2) of this chapter with regard 

to the State, provisions substantively identical to those 

provisions, except that the words “more than 25 MWe” are 

replaced, wherever such words appear, by words specifying a 

uniform lower limit on the amount of megawatts that is not 

greater than the amount specified by the words “more than 25 

MWe” and is not less than the amount specified by the words “15 

MWe or more”; and

(ii) May adopt, as CSAPR NOX Ozone Season Group 1 allowance 

allocation provisions replacing the provisions in §§ 97.511(a) 

and (b)(1) and 97.512(a) of this chapter with regard to the 

State and the control period in 2017 or any subsequent year, any 

methodology under which the State or the permitting authority 

allocates or auctions CSAPR NOX Ozone Season Group 1 allowances 

and that—

* * * * *
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(v) Must not include any of the requirements imposed on any 

unit in Indian country within the borders of the State in the 

provisions in §§ 97.502 through 97.535 of this chapter and must 

not include the provisions in §§ 97.511(b)(2) and (c)(5)(iii), 

97.512(b), and 97.521(h) and (j) of this chapter, all of which 

provisions will continue to apply under any portion of the CSAPR 

Federal Implementation Plan that is not replaced by the SIP 

revision;

(vi) Provided that, if and when any covered unit is located 

in Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§ 97.502 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.506(c)(2), and 97.525 of this chapter and the 

portions of other provisions of subpart BBBBB of part 97 of this 

chapter referencing these sections and may modify any portion of 

the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

(vii) Provided that the State must submit a complete SIP 

revision meeting the requirements of paragraphs (b)(5)(i) 

through (v) of this section by December 1 of the year before the 

year of the deadlines for submission of allocations or auction 
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results under paragraphs (b)(5)(ii)(B) and (C) of this section 

applicable to the first control period for which the State wants 

to replace the applicability provisions, make allocations, or 

hold an auction under paragraph (b)(5)(i) or (ii) of this 

section.

(6) Notwithstanding the provisions of paragraph (b)(1) of 

this section, a State listed in paragraph (b)(2)(i) of this 

section may adopt and include in a SIP revision, and the 

Administrator will approve, as correcting the deficiency in the 

SIP that is the basis for the CSAPR Federal Implementation Plan 

set forth in paragraphs (b)(1), (2)(i), (3), and (4) of this 

section with regard to sources in the State (but not sources in 

any Indian country within the borders of the State), regulations 

that are substantively identical to the provisions of the CSAPR 

NOX Ozone Season Group 2 Trading Program set forth in §§ 97.802 

through 97.835 of this chapter, subject to the following 

requirements and exceptions:

(i) The provisions of paragraphs (b)(9)(i) through (viii) 

of this section apply to any such SIP revision.

(ii) Following promulgation of an approval by the 

Administrator of such a SIP revision:

(A) The provisions of the SIP revision will apply to 

sources in the State with regard to emissions occurring in the 
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control period that begins May 1 immediately after promulgation 

of such approval, or such later control period as may be adopted 

by the State in its regulations and approved by the 

Administrator in the SIP revision, and in each subsequent 

control period.

(B) Notwithstanding the provisions of paragraph 

(b)(6)(ii)(A) of this section, if, at the time of the approval 

of the SIP revision, the Administrator has already started 

recording any allocations of CSAPR NOX Ozone Season Group 1 

allowances to units in the State for a control period in any 

year, the Administrator will not record allocations of CSAPR NOX

Ozone Season Group 2 allowances to units in the State for any 

such control period under the provisions of the SIP revision but 

instead will allocate and record CSAPR NOX Ozone Season Group 2 

allowances in place of CSAPR NOX Ozone Season Group 1 allowances 

under § 97.526(c)(2) of this chapter, unless provided otherwise 

by such approval of the SIP revision.

(7) Notwithstanding the provisions of paragraph (b)(1) of 

this section, a State listed in paragraph (b)(2)(iii) of this 

section may adopt and include in a SIP revision, and the 

Administrator will approve, as CSAPR NOX Ozone Season Group 2 

allowance allocation provisions replacing the provisions in 

§ 97.811(a) of this chapter with regard to the State and the 
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control period in 2018, a list of CSAPR NOX Ozone Season Group 2 

units and the amount of CSAPR NOX Ozone Season Group 2 allowances 

allocated to each unit on such list, provided that the list of 

units and allocations meets the following requirements:

(i) All of the units on the list must be units that are in 

the State and commenced commercial operation before January 1, 

2015;

(ii) The total amount of CSAPR NOX Ozone Season Group 2 

allowance allocations on the list must not exceed the amount, 

under § 97.810(a) of this chapter for the State and the control 

period in 2018, of the CSAPR NOX Ozone Season Group 2 trading 

budget minus the sum of the new unit set-aside and Indian 

country new unit set-aside;

(iii) The list must be submitted electronically in a format 

specified by the Administrator; and

(iv) The SIP revision must not provide for any change in 

the units and allocations on the list after approval of the SIP 

revision by the Administrator and must not provide for any 

change in any allocation determined and recorded by the 

Administrator under subpart EEEEE of part 97 of this chapter;

(v) Provided that:

(A) By December 15, 2016, the State must notify the 

Administrator electronically in a format specified by the 
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version, but it is not the official version.

Administrator of the State’s intent to submit to the 

Administrator a complete SIP revision meeting the requirements 

of paragraphs (b)(7)(i) through (iv) of this section by April 1, 

2017; and

(B) The State must submit to the Administrator a complete 

SIP revision described in paragraph (b)(7)(v)(A) of this section 

by April 1, 2017.

(8) Notwithstanding the provisions of paragraph (b)(1) of 

this section, a State listed in paragraph (b)(2)(iii) of this 

section may adopt and include in a SIP revision, and the 

Administrator will approve, regulations revising subpart EEEEE 

of part 97 of this chapter as follows and not making any other 

substantive revisions of that subpart:

(i) The State may adopt, as applicability provisions 

replacing the provisions in § 97.804(a)(1) and (2) of this 

chapter with regard to the State, provisions substantively 

identical to those provisions, except that the words “more than 

25 MWe” are replaced, wherever such words appear, by words 

specifying a uniform lower limit on the amount of megawatts that 

is not greater than the amount specified by the words “more than 

25 MWe” and is not less than the amount specified by the words 

“15 MWe or more”; 
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(ii) Such a State listed in § 51.121(c) of this chapter may 

adopt, as applicability provisions replacing the provisions in 

§ 97.804(a) and (b) of this chapter with regard to the State, 

provisions substantively identical to those provisions, except 

that applicability is expanded to include, in addition to all 

units in the State that would be CSAPR NOX Ozone Season Group 2 

units under § 97.804(a) and (b) of this chapter and any units to 

which the State elects to expand applicability pursuant to 

paragraph (b)(8)(i) of this section, all other units that would 

have been subject to the State’s emissions trading program 

regulations approved as a SIP revision under § 51.121(p) of this 

chapter except units to which the State is authorized to expand 

applicability under paragraph (b)(8)(i) of this section; and

(iii) The State may adopt, as CSAPR NOX Ozone Season Group 2 

allowance allocation or auction provisions replacing the 

provisions in §§ 97.811(a) and (b)(1) and 97.812(a) of this 

chapter with regard to the State and the control period in 2019 

or any subsequent year, any methodology under which the State or 

the permitting authority allocates or auctions CSAPR NOX Ozone 

Season Group 2 allowances and may adopt, in addition to the 

definitions in § 97.802 of this chapter, one or more definitions 

that shall apply only to terms as used in the adopted CSAPR NOX
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Ozone Season Group 2 allowance allocation or auction provisions, 

if such methodology—

(A) Requires the State or the permitting authority to 

allocate and, if applicable, auction a total amount of CSAPR NOX

Ozone Season Group 2 allowances for any such control period not 

exceeding the amount, under §§ 97.810(a) and 97.821 of this 

chapter for the State and such control period, of the CSAPR NOX

Ozone Season Group 2 trading budget minus the sum of the Indian 

country new unit set-aside and the amount of any CSAPR NOX Ozone 

Season Group 2 allowances already allocated and recorded by the 

Administrator, plus, if the State adopts regulations expanding 

applicability to additional units pursuant to paragraph 

(b)(8)(ii) of this section, an additional amount of CSAPR NOX

Ozone Season Group 2 allowances not exceeding the lesser of:

(1) The highest of the sum, for all additional units in the 

State to which applicability is expanded pursuant to paragraph 

(b)(8)(ii) of this section, of the NOX emissions reported in 

accordance with part 75 of this chapter for the ozone season in 

the year before the year of the submission deadline for the SIP 

revision under paragraph (b)(8)(iv) of this section and the 

corresponding sums of the NOX emissions reported in accordance 

with part 75 of this chapter for each of the two immediately 

preceding ozone seasons, provided that each such seasonal sum 
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shall exclude the amount of any NOX emissions reported by any 

unit for all hours in any calendar day during which the unit did 

not have at least one quality-assured monitor operating hour, as 

defined in § 72.2 of this chapter; or

(2) The portion of the emissions budget under the State’s 

emissions trading program regulations approved as a SIP revision 

under § 51.121(p) of this chapter that is attributable to the 

units to which applicability is expanded pursuant to paragraph 

(b)(8)(ii) of this section. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auctions of CSAPR NOX Ozone Season Group 2 

allowances for any such control period to any CSAPR NOX Ozone 

Season Group 2 units covered by § 97.811(a) of this chapter, 

that the State or the permitting authority submit such 

allocations or the results of such auctions for such control 

period (except allocations or results of auctions to such units 

of CSAPR NOX Ozone Season Group 2 allowances remaining in a setaside after completion of the allocations or auctions for which 

the set-aside was created) to the Administrator no later than 

the following dates:
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Year of the control period for 

which CSAPR NOX Ozone Season 

Group 2 allowances are 

allocated or auctioned

Deadline for submission of 

allocations or auction results 

to the Administrator

2019 June 1, 2018.

2020 June 1, 2018.

2021 June 1, 2019.

2022 June 1, 2019.

2023 June 1, 2020.

2024 June 1, 2020.

2025 and any year thereafter June 1 of the fourth year 

before the year of the control 

period.

(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of CSAPR NOX Ozone Season Group 2 

allowances for any such control period to any CSAPR NOX Ozone 

Season Group 2 units covered by §§ 97.811(b)(1) and 97.812(a) of 

this chapter, that the State or the permitting authority submit 

such allocations or the results of such auctions (except 

allocations or results of auctions to such units of CSAPR NOX

Ozone Season Group 2 allowances remaining in a set-aside after 

completion of the allocations or auctions for which the setaside was created) to the Administrator by July 1 of the year of 

such control period.

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (b)(8)(iii)(B) and (C) of this section, 

in the allocations submitted to the Administrator by such 

deadlines and does not provide for any change in any allocation 
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determined and recorded by the Administrator under subpart EEEEE 

of part 97 of this chapter or § 97.526(c) of this chapter;

(iv) Provided that the State must submit a complete SIP 

revision meeting the requirements of paragraph (b)(8)(i), (ii), 

or (iii) of this section by December 1 of the year before the 

year of the deadlines for submission of allocations or auction 

results under paragraphs (b)(8)(iii)(B) and (C) of this section 

applicable to the first control period for which the State wants 

to replace the applicability provisions, make allocations, or 

hold an auction under paragraph (b)(8)(i), (ii), or (iii) of 

this section.

(9) Notwithstanding the provisions of paragraph (b)(1) of 

this section, a State listed in paragraph (b)(2)(iii) of this 

section may adopt and include in a SIP revision, and the 

Administrator will approve, as correcting the deficiency in the 

SIP that is the basis for the CSAPR Federal Implementation Plan 

set forth in paragraphs (b)(1), (2)(iii), (7), and (8) of this 

section with regard to sources in the State (but not sources in 

any Indian country within the borders of the State), regulations 

that are substantively identical to the provisions of the CSAPR 

NOX Ozone Season Group 2 Trading Program set forth in §§ 97.802 

through 97.835 of this chapter, except that the SIP revision:
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(i) May adopt, as applicability provisions replacing the 

provisions in § 97.804(a)(1) and (2) of this chapter with regard 

to the State, provisions substantively identical to those 

provisions, except that the words “more than 25 MWe” are 

replaced, wherever such words appear, by words specifying a 

uniform lower limit on the amount of megawatts that is not 

greater than the amount specified by the words “more than 25 

MWe” and is not less than the amount specified by the words “15 

MWe or more”; 

(ii) In the case of such a State listed in § 51.121(c) of 

this chapter, may adopt, as applicability provisions replacing 

the provisions in § 97.804(a) and (b) of this chapter with 

regard to the State, provisions substantively identical to those 

provisions, except that applicability is expanded to include, in 

addition to all units in the State that would be CSAPR NOX Ozone 

Season Group 2 units under § 97.804(a) and (b) of this chapter

and any units to which the State elects to expand applicability 

pursuant to paragraph (b)(9)(i) of this section, all other units 

that would have been subject to the State’s emissions trading 

program regulations approved as a SIP revision under § 51.121(p) 

of this chapter except units to which the State is authorized to 

expand applicability under paragraph (b)(9)(i) of this section;

and
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(iii) May adopt, as CSAPR NOX Ozone Season Group 2 allowance 

allocation provisions replacing the provisions in §§ 97.811(a) 

and (b)(1) and 97.812(a) of this chapter with regard to the 

State and the control period in 2019 or any subsequent year, any 

methodology under which the State or the permitting authority 

allocates or auctions CSAPR NOX Ozone Season Group 2 allowances 

and that—

(A) Requires the State or the permitting authority to 

allocate and, if applicable, auction a total amount of CSAPR NOX

Ozone Season Group 2 allowances for any such control period not 

exceeding the amount, under §§ 97.810(a) and 97.821 of this 

chapter for the State and such control period, of the CSAPR NOX

Ozone Season Group 2 trading budget minus the sum of the Indian 

country new unit set-aside and the amount of any CSAPR NOX Ozone 

Season Group 2 allowances already allocated and recorded by the 

Administrator, plus, if the State adopts regulations expanding 

applicability to additional units pursuant to paragraph 

(b)(9)(ii) of this section, an additional amount of CSAPR NOX

Ozone Season Group 2 allowances not exceeding the lesser of:

(1) The highest of the sum, for all additional units in the 

State to which applicability is expanded pursuant to paragraph 

(b)(9)(ii) of this section, of the NOX emissions reported in 

accordance with part 75 of this chapter for the ozone season in 
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the year before the year of the submission deadline for the SIP 

revision under paragraph (b)(9)(viii) of this section and the 

corresponding sums of the NOX emissions reported in accordance 

with part 75 of this chapter for each of the two immediately 

preceding ozone seasons, provided that each such seasonal sum

shall exclude the amount of any NOX emissions reported by any 

unit for all hours in any calendar day during which the unit did 

not have at least one quality-assured monitor operating hour, as 

defined in § 72.2 of this chapter; or

(2) The portion of the emissions budget under the State’s 

emissions trading program regulations approved as a SIP revision 

under § 51.121(p) of this chapter that is attributable to the 

units to which applicability is expanded pursuant to paragraph 

(b)(9)(ii) of this section. 

(B) Requires, to the extent the State adopts provisions for 

allocations or auctions of CSAPR NOX Ozone Season Group 2 

allowances for any such control period to any CSAPR NOX Ozone 

Season Group 2 units covered by § 97.811(a) of this chapter, 

that the State or the permitting authority submit such 

allocations or the results of such auctions for such control 

period (except allocations or results of auctions to such units 

of CSAPR NOX Ozone Season Group 2 allowances remaining in a setaside after completion of the allocations or auctions for which 
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the set-aside was created) to the Administrator no later than 

the following dates:

Year of the control period for 

which CSAPR NOX Ozone Season 

Group 2 allowances are 

allocated or auctioned

Deadline for submission of 

allocations or auction results 

to the Administrator

2019 June 1, 2018.

2020 June 1, 2018.

2021 June 1, 2019.

2022 June 1, 2019.

2023 June 1, 2020.

2024 June 1, 2020.

2025 and any year thereafter June 1 of the fourth year 

before the year of the control 

period.

(C) Requires, to the extent the State adopts provisions for 

allocations or auctions of CSAPR NOX Ozone Season Group 2 

allowances for any such control period to any CSAPR NOX Ozone 

Season Group 2 units covered by §§ 97.811(b)(1) and 97.812(a) of 

this chapter, that the State or the permitting authority submit 

such allocations or the results of such auctions (except 

allocations or results of auctions to such units of CSAPR NOX

Ozone Season Group 2 allowances remaining in a set-aside after 

completion of the allocations or auctions for which the setaside was created) to the Administrator by July 1 of the year of 

such control period.

(D) Does not provide for any change, after the submission 

deadlines in paragraphs (b)(9)(iii)(B) and (C) of this section, 

in the allocations submitted to the Administrator by such 
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deadlines and does not provide for any change in any allocation 

determined and recorded by the Administrator under subpart EEEEE 

of part 97 of this chapter or § 97.526(c) of this chapter;

(iv) May adopt, in addition to the definitions in § 97.802 

of this chapter, one or more definitions that shall apply only 

to terms as used in the CSAPR NOX Ozone Season Group 2 allowance 

allocation or auction provisions adopted under paragraph 

(b)(9)(iii) of this section;

(v) May substitute the name of the State for the term 

“State” as used in subpart EEEEE of part 97 of this chapter, to 

the extent the Administrator determines that such substitutions 

do not make substantive changes in the provisions in §§ 97.802 

through 97.835 of this chapter; and

(vi) Must not include any of the requirements imposed on 

any unit in Indian country within the borders of the State in 

the provisions in §§ 97.802 through 97.835 of this chapter and 

must not include the provisions in §§ 97.811(b)(2) and 

(c)(5)(iii), 97.812(b), and 97.821(h) and (j) of this chapter, 

all of which provisions will continue to apply under any portion 

of the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision;

(vii) Provided that, if and when any covered unit is 

located in Indian country within the borders of the State, the 
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Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§ 97.802 (definitions of “base 

CSAPR NOX Ozone Season Group 2 source”, “base CSAPR NOX Ozone 

Season Group 2 unit”, “common designated representative”, 

“common designated representative’s assurance level”, and 

“common designated representative’s share”), 97.806(c)(2), and 

97.825 of this chapter and the portions of other provisions of 

subpart EEEEE of part 97 of this chapter referencing these 

sections and may modify any portion of the CSAPR Federal 

Implementation Plan that is not replaced by the SIP revision to 

include these provisions;

(viii) Provided that the State must submit a complete SIP 

revision meeting the requirements of paragraphs (b)(9)(i) 

through (vi) of this section by December 1 of the year before 

the year of the deadlines for submission of allocations or 

auction results under paragraphs (b)(9)(iii)(B) and (C) of this 

section applicable to the first control period for which the 

State wants to replace the applicability provisions, make 

allocations, or hold an auction under paragraph (b)(9)(i), (ii), 

or (iii) of this section.

(10) Following promulgation of an approval by the 

Administrator of a State’s SIP revision as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 
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Implementation Plan set forth in paragraphs (b)(1), (2)(i), (3), 

and (4) of this section or paragraphs (b)(1), (2)(iii), (7), and 

(8) of this section for sources in the State—

(i) The provisions of paragraph (b)(2)(i) or (iii) of this 

section, as applicable, will no longer apply to sources in the 

State, unless the Administrator’s approval of the SIP revision 

is partial or conditional, and will continue to apply to sources 

in any Indian country within the borders of the State, provided 

that if the CSAPR Federal Implementation Plan was promulgated as 

a partial rather than full remedy for an obligation of the State 

to address interstate air pollution, the SIP revision likewise 

will constitute a partial rather than full remedy for the 

State’s obligation unless provided otherwise in the 

Administrator’s approval of the SIP revision; and

(ii) For a State listed in § 51.121(c) of this chapter, the 

State’s adoption of the regulations included in such approved 

SIP revision will satisfy with regard to the sources subject to 

such regulations, including any sources made subject to such 

regulations pursuant to paragraph (b)(9)(ii) of this section, 

the requirement under § 51.121(r)(2) of this chapter for the 

State to revise its SIP to adopt control measures with regard to 

such sources.
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(11) Notwithstanding the provisions of paragraph (b)(10)(i) 

of this section—

(i) If, at the time of such approval of the State’s SIP 

revision, the Administrator has already started recording any 

allocations of CSAPR NOX Ozone Season Group 1 allowances under 

subpart BBBBB of part 97 of this chapter, or allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter, to units in the State for a control 

period in any year, the provisions of subpart BBBBB of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 1 

allowances, or of subpart EEEEE of part 97 of this chapter 

authorizing the Administrator to complete the allocation and 

recordation of CSAPR NOX Ozone Season Group 2 allowances, as 

applicable, to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision; and

(ii) The provisions of § 97.526(c)(1) through (6) of this 

chapter authorizing the Administrator to remove CSAPR NOX Ozone 

Season Group 1 allowances from any account where such allowances 

are held and to allocate and record amounts of CSAPR NOX Ozone 

Season Group 2 allowances in place of any CSAPR NOX Ozone Season 

Group 1 allowances that have been so removed or that have not
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been initially recorded, and the provisions of § 97.526(c)(7) of 

this chapter authorizing the use of CSAPR NOX Ozone Season Group 

2 allowances to satisfy requirements to hold CSAPR NOX Ozone 

Season Group 1 allowances, will continue to apply.

(12) The following States have SIP revisions approved by 

the Administrator under paragraph (b)(3), (4), or (5) of this 

section:

(i) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (b)(3) of this section 

as replacing the CSAPR NOX Ozone Season Group 1 allowance 

allocation provisions in § 97.511(a) of this chapter with regard 

to the State and the control period in 2016: Alabama and 

Missouri.

(ii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (b)(4) of this 

section as replacing the CSAPR NOX Ozone Season Group 1 

applicability provisions in § 97.504(a)(1) and (2) of this 

chapter or the CSAPR NOX Ozone Season Group 1 allowance 

allocation provisions in §§ 97.511(a) and (b)(1) and 97.512(a) 

of this chapter with regard to the State and the control period 

in 2017 or any subsequent year: [none].

(iii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (b)(5) of this 
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section as correcting the SIP’s deficiency that is the basis for 

the CSAPR Federal Implementation Plan set forth in paragraphs 

(b)(1), (2)(i), (3), and (4) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State): [none].

(13) The following States have SIP revisions approved by 

the Administrator under paragraph (b)(6), (7), (8), or (9) of 

this section:

(i) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (b)(6) of this section 

as correcting the SIP’s deficiency that is the basis for the 

CSAPR Federal Implementation Plan set forth in paragraphs 

(b)(1), (2)(i), (3), and (4) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State): [none].

(ii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (b)(7) of this 

section as replacing the CSAPR NOX Ozone Season Group 2 allowance 

allocation provisions in § 97.811(a) of this chapter with regard 

to the State and the control period in 2018: [none].

(iii) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (b)(8) of this 

section as replacing the CSAPR NOX Ozone Season Group 2 
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applicability provisions in § 97.804(a) and (b) or 

§ 97.804(a)(1) and (2) of this chapter or the CSAPR NOX Ozone 

Season Group 2 allowance allocation provisions in §§ 97.811(a) 

and (b)(1) and 97.812(a) of this chapter with regard to the 

State and the control period in 2019 or any subsequent year: 

[none].

(iv) For each of the following States, the Administrator 

has approved a SIP revision under paragraph (b)(9) of this 

section as correcting the SIP’s deficiency that is the basis for 

the CSAPR Federal Implementation Plan set forth in paragraphs 

(b)(1), (2)(iii), (7), and (8) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State): [none].

■ 5. Section 52.39 is amended by:

a. Revising the section heading;

b. In paragraph (d)(2), after the text “2016, of” adding 

the word “the”;

c. In paragraph (d)(5)(i), removing the word “paragraph” 

and adding in its place the word “paragraphs”;

d. In paragraph (e)(1) introductory text, after the words 

“with regard to” adding the words “the State and”;

e. In paragraph (e)(1)(ii), removing the words “auction of” 

and adding in their place the words “auctions of”, and removing 
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from the table heading the word “administrator” and adding in 

its place the words “the Administrator”;

f. Revising paragraph (f) introductory text;

g. In paragraph (f)(1) introductory text, removing the text 

“control period in 2017 and” and adding in its place the text 

“State and the control period in 2017 or”;

h. In paragraph (f)(1)(i), removing the words “for such” 

and adding in their place the words “for any such”;

i. In paragraph (f)(1)(ii), removing the words “auction of” 

and adding in their place the words “auctions of”, and removing 

from the table heading the word “administrator” and adding in 

its place the words “the Administrator”;

j. In paragraph (f)(1)(iv), removing the text “paragraphs 

(f)(2)(ii) and (iii)” and adding in its place the text 

“paragraphs (f)(1)(ii) and (iii)”;

k. Revising paragraphs (f)(4) and (5);

l. In paragraph (f)(6), removing the text “hold an auction 

under paragraph (f)(1)(ii) and (iii)” and adding in its place 

the text “hold an auction under paragraph (f)(1)”;

m. In paragraph (g) introductory text, after the words 

“with regard to” adding the words “the State and”;

n. In paragraph (g)(2), after the text “2016, of” adding 

the word “the”;
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o. In paragraph (g)(5)(i), removing the word “paragraph” 

and adding in its place the word “paragraphs”;

p. In paragraph (h)(1) introductory text, removing the text 

“control period in 2017 and” and adding in its place the text 

“State and the control period in 2017 or”;

q. In paragraph (h)(1)(ii), removing the words “auction of” 

and adding in their place the words “auctions of”, and removing 

from the table heading the word “administrator” and adding in 

its place the words “the Administrator”;

r. In paragraph (h)(2), removing the text “hold an auction 

under paragraph (h)(1)(ii) and (iii)” and adding in its place 

the text “hold an auction under paragraph (h)(1)”;

s. Revising paragraph (i) introductory text;

t. In paragraph (i)(1) introductory text, removing the text 

“control period in 2017 and” and adding in its place the text 

“State and the control period in 2017 or”;

u. In paragraph (i)(1)(ii), removing the words “auction of” 

and adding in their place the words “auctions of”, and removing 

from the table heading the word “administrator” and adding in 

its place the words “the Administrator”;

v. Revising paragraphs (i)(4) and (5);
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w. In paragraph (i)(6), removing the text “hold an auction 

under paragraphs (i)(1)(ii) and (iii)” and adding in its place 

the text “hold an auction under paragraph (i)(1)”;

x. Revising paragraph (j);

y. In paragraph (k), removing the words “a State” and 

adding in their place the words “the State”; and

z. Adding paragraphs (l) and (m).

The revisions and additions read as follows:

§ 52.39 What are the requirements of the Federal Implementation 

Plans (FIPs) for the Cross-State Air Pollution Rule (CSAPR) 

relating to emissions of sulfur dioxide?

* * * * *

(f) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (b) of this section may 

adopt and include in a SIP revision, and the Administrator will 

approve, as correcting the deficiency in the SIP that is the 

basis for the CSAPR Federal Implementation Plan set forth in 

paragraphs (a), (b), (d), and (e) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State), regulations that are

substantively identical to the provisions of the CSAPR SO2 Group 

1 Trading Program set forth in §§ 97.602 through 97.635 of this 

chapter, except that the SIP revision:
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version, but it is not the official version.

* * * * *

(4) Must not include any of the requirements imposed on any 

unit in Indian country within the borders of the State in the 

provisions in §§ 97.602 through 97.635 of this chapter and must 

not include the provisions in §§ 97.611(b)(2) and (c)(5)(iii), 

97.612(b), and 97.621(h) and (j) of this chapter, all of which 

provisions will continue to apply under any portion of the CSAPR 

Federal Implementation Plan that is not replaced by the SIP 

revision;

(5) Provided that, if and when any covered unit is located 

in Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§ 97.602 (definitions of “common 

designated representative”, “common designated representative’s 

assurance level”, and “common designated representative’s 

share”), 97.606(c)(2), and 97.625 of this chapter and the 

portions of other provisions of subpart CCCCC of part 97 of this 

chapter referencing these sections and may modify any portion of 

the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

* * * * *

(i) Notwithstanding the provisions of paragraph (a) of this 

section, a State listed in paragraph (c) of this section may 
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adopt and include in a SIP revision, and the Administrator will 

approve, as correcting the deficiency in the SIP that is the 

basis for the CSAPR Federal Implementation Plan set forth in 

paragraphs (a), (c), (g), and (h) of this section with regard to 

sources in the State (but not sources in any Indian country 

within the borders of the State), regulations that are 

substantively identical to the provisions of the CSAPR SO2 Group 

2 Trading Program set forth in §§ 97.702 through 97.735 of this 

chapter, except that the SIP revision:

* * * * *

(4) Must not include any of the requirements imposed on any 

unit in Indian country within the borders of the State in the 

provisions in §§ 97.702 through 97.735 of this chapter and must 

not include the provisions in §§ 97.711(b)(2) and (c)(5)(iii), 

97.712(b), and 97.721(h) and (j) of this chapter, all of which 

provisions will continue to apply under any portion of the CSAPR 

Federal Implementation Plan that is not replaced by the SIP 

revision;

(5) Provided that, if and when any covered unit is located 

in Indian country within the borders of the State, the 

Administrator may modify his or her approval of the SIP revision 

to exclude the provisions in §§ 97.702 (definitions of “common 

designated representative”, “common designated representative’s 
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assurance level”, and “common designated representative’s 

share”), 97.706(c)(2), and 97.725 of this chapter and the 

portions of other provisions of subpart DDDDD of part 97 of this 

chapter referencing these sections and may modify any portion of 

the CSAPR Federal Implementation Plan that is not replaced by 

the SIP revision to include these provisions;

* * * * *

(j) Following promulgation of an approval by the 

Administrator of a State’s SIP revision as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 

Implementation Plan set forth in paragraphs (a), (b), (d), and 

(e) of this section or paragraphs (a), (c), (g), and (h) of this 

section for sources in the State, the provisions of paragraph 

(b) or (c) of this section, as applicable, will no longer apply 

to sources in the State, unless the Administrator’s approval of 

the SIP revision is partial or conditional, and will continue to 

apply to sources in any Indian country within the borders of the 

State, provided that if the CSAPR Federal Implementation Plan 

was promulgated as a partial rather than full remedy for an 

obligation of the State to address interstate air pollution, the 

SIP revision likewise will constitute a partial rather than full 

remedy for the State’s obligation unless provided otherwise in 

the Administrator’s approval of the SIP revision.
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* * * * *

(l) The following States have SIP revisions approved by the 

Administrator under paragraph (d), (e), or (f) of this section:

(1) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (d) of this section as 

replacing the CSAPR SO2 Group 1 allowance allocation provisions 

in § 97.611(a) of this chapter with regard to the State and the 

control period in 2016: [none].

(2) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (e) of this section as 

replacing the CSAPR SO2 Group 1 allowance allocation provisions 

in §§ 97.611(a) and (b)(1) and 97.612(a) of this chapter with 

regard to the State and the control period in 2017 or any 

subsequent year: Missouri.

(3) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (f) of this section as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan set forth in paragraphs (a), (b), 

(d), and (e) of this section with regard to sources in the State 

(but not sources in any Indian country within the borders of the 

State): [none].

(m) The following States have SIP revisions approved by the 

Administrator under paragraph (g), (h), or (i) of this section:
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(1) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (g) of this section as 

replacing the CSAPR SO2 Group 2 allowance allocation provisions 

in § 97.711(a) of this chapter with regard to the State and the 

control period in 2016: Alabama and Nebraska.

(2) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (h) of this section as 

replacing the CSAPR SO2 Group 2 allowance allocation provisions 

in §§ 97.711(a) and (b)(1) and 97.712(a) of this chapter with 

regard to the State and the control period in 2017 or any 

subsequent year: [none].

(3) For each of the following States, the Administrator has 

approved a SIP revision under paragraph (i) of this section as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan set forth in paragraphs (a), (c), 

(g), and (h) of this section with regard to sources in the State 

(but not sources in any Indian country within the borders of the 

State): Alabama.

Subpart B—Alabama

■ 6. Section 52.54 is amended by: 

a. Revising paragraph (a)(1);

b. Removing paragraph (a)(3); and

c. Revising paragraph (b).
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The revisions read as follows:

§ 52.54 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

(a)(1) The owner and operator of each source and each unit 

located in the State of Alabama and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Annual Trading Program in subpart AAAAA of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Alabama's State Implementation Plan (SIP) as correcting the 

SIP's deficiency that is the basis for the CSAPR Federal 

Implementation Plan under § 52.38(a) for those sources and 

units, except to the extent the Administrator's approval is 

partial or conditional. The obligation to comply with such 

requirements with regard to sources and units located in Indian 

country within the borders of the State will not be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Alabama’s SIP.

* * * * * 

(b)(1) The owner and operator of each source and each unit 

located in the State of Alabama and Indian country within the 
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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Alabama and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Alabama’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 
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version, but it is not the official version.

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to Alabama’s 

SIP.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Alabama’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

■ 7. Section 52.55 is amended by:

a. Revising paragraph (a); and

b. Removing paragraph (c).

The revisions read as follows:
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§ 52.55 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of sulfur dioxide?

(a) The owner and operator of each source and each unit 

located in the State of Alabama and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR SO2 Group 2 Trading Program in subpart DDDDD of 

part 97 of this chapter must comply with such requirements. The 

obligation to comply with such requirements with regard to 

sources and units in the State will be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Alabama's State Implementation Plan (SIP) as correcting the 

SIP's deficiency that is the basis for the CSAPR Federal 

Implementation Plan under § 52.39 for those sources and units, 

except to the extent the Administrator's approval is partial or 

conditional. The obligation to comply with such requirements 

with regard to sources and units located in Indian country 

within the borders of the State will not be eliminated by the 

promulgation of an approval by the Administrator of a revision 

to Alabama’s SIP.

* * * * * 

Subpart E—Arkansas

■ 8. Section 52.184 is revised to read as follows:
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version, but it is not the official version.

§ 52.184 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

(a) The owner and operator of each source and each unit 

located in the State of Arkansas and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(b) The owner and operator of each source and each unit 

located in the State of Arkansas and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Arkansas’ State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 
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version, but it is not the official version.

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(c) Notwithstanding the provisions of paragraph (b) of this 

section, if, at the time of the approval of Arkansas’ SIP 

revision described in paragraph (b) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart K—Florida

■ 9. Section 52.540 is amended by:

a. Revising paragraph (a); and

b. Removing and reserving paragraph (b).

The revisions read as follows:

§ 52.540 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?
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version, but it is not the official version.

(a) The owner and operator of each source and each unit 

located in the State of Florida and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

* * * * *

Subpart L—Georgia

§ 52.584 [Amended] 

■ 10. Section 52.584 is amended by:

a. In paragraph (b)(1), removing the words “Ozone Season” 

and adding in their place the text “Ozone Season Group 1”; and

b. In paragraph (b)(2), removing the words “Ozone Season” 

two times and adding in their place the text “Ozone Season Group 

1”.

Subpart O—Illinois

■ 11. Section 52.731 is amended by revising paragraph (b) to 

read as follows:

§ 52.731 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *
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(b)(1) The owner and operator of each source and each unit 

located in the State of Illinois and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Illinois and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Illinois’ State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 
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version, but it is not the official version.

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Illinois’ SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart P—Indiana

■ 12. Section 52.789 is amended by revising paragraph (b) to 

read as follows:

§ 52.789 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Indiana and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 
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version, but it is not the official version.

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Indiana and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Indiana’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Indiana’s SIP 
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revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart Q—Iowa

■ 13. Section 52.840 is amended by:

a. In paragraph (a)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and 

b. Revising paragraph (b).

The revisions read as follows:

§ 52.840 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Iowa and Indian country within the 

borders of the State and for which requirements are set forth 
465

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Iowa and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Iowa’s State Implementation Plan (SIP) as correcting 

the SIP’s deficiency that is the basis for the CSAPR Federal 

Implementation Plan (FIP) under § 52.38(b) for those sources and 

units, except to the extent the Administrator’s approval is 

partial or conditional, provided that because the CSAPR FIP was 

promulgated as a partial rather than full remedy for an 

obligation of the State to address interstate air pollution, the 

SIP revision likewise will constitute a partial rather than full 

remedy for the State’s obligation unless provided otherwise in 

the Administrator’s approval of the SIP revision. The obligation 
466

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to comply with such requirements with regard to sources and 

units located in Indian country within the borders of the State 

will not be eliminated by the promulgation of an approval by the 

Administrator of a revision to Iowa’s SIP.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Iowa’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.841 [Amended] 

■ 14. Section 52.841, paragraph (a) is amended by removing the 

words “in part”, and after the text “§ 52.39” adding the words 

“for those sources and units”.

Subpart R—Kansas

■ 15. Section 52.882 is amended by:
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version, but it is not the official version.

a. In paragraph (a)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”;

b. Removing paragraph (a)(3); and

c. Adding paragraph (b).

The additions read as follows:

§ 52.882 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Kansas and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Kansas’ State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 
468

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to Kansas’ 

SIP.

(2) Notwithstanding the provisions of paragraph (b)(1) of 

this section, if, at the time of the approval of Kansas’ SIP 

revision described in paragraph (b)(1) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.883 [Amended] 
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■ 16. Section 52.883, paragraph (a) is amended by removing the 

words “in part”, and after the text “§ 52.39” adding the words 

“for those sources and units”.

Subpart S—Kentucky

■ 17. Section 52.940 is amended by revising paragraph (b) to 

read as follows:

§ 52.940 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Kentucky and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Kentucky and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Kentucky’s State 
470

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Kentucky’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart T—Louisiana
471

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

■ 18. Section 52.984 is amended by revising paragraph (d) to 

read as follows:

§ 52.984 Interstate pollutant transport provisions; What are the 

FIP requirements for decreases in emissions of nitrogen oxides?

* * * * *

(d)(1) The owner and operator of each source and each unit 

located in the State of Louisiana and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Louisiana and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Louisiana’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 
472

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to Louisiana’s 

SIP.

(3) Notwithstanding the provisions of paragraph (d)(2) of 

this section, if, at the time of the approval of Louisiana’s SIP 

revision described in paragraph (d)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 
473

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart V—Maryland

■ 19. Section 52.1084 is amended by revising paragraph (b) to 

read as follows:

§ 52.1084 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Maryland and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Maryland and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Maryland’s State 
474

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Maryland’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart X—Michigan
475

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

■ 20. Section 52.1186 is amended by:

a. In paragraph (d)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and 

b. Revising paragraph (e).

The revisions read as follows:

§ 52.1186 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(e)(1) The owner and operator of each source and each unit 

located in the State of Michigan and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Michigan and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 
476

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Michigan’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to Michigan’s 

SIP.

(3) Notwithstanding the provisions of paragraph (e)(2) of 

this section, if, at the time of the approval of Michigan’s SIP 

revision described in paragraph (e)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 
477

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.1187 [Amended]

■ 21. Section 52.1187 is amended by:

a. In paragraph (c)(1), removing the words “in part”, and 

after the text “§ 52.39” adding the words “for those sources and 

units”; and

b. In paragraph (c)(2), removing the word “Maryland’s” and 

adding in its place the word “Michigan’s”.

Subpart Y—Minnesota

§ 52.1240 [Amended]

■ 22. Section 52.1240, paragraph (c)(1) is amended by removing 

the words “in part”, and after the text “§ 52.38(a)” adding the 

words “for those sources and units”.

§ 52.1241 [Amended]

■ 23. Section 52.1241, paragraph (c)(1) is amended by removing 

the words “in part”, and after the text “§ 52.39” adding the 

words “for those sources and units”.
478

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Subpart Z—Mississippi

■ 24. Section 52.1284 is revised to read as follows:

§ 52.1284 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a) The owner and operator of each source and each unit 

located in the State of Mississippi and Indian country within 

the borders of the State and for which requirements are set 

forth under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(b) The owner and operator of each source and each unit 

located in the State of Mississippi and Indian country within 

the borders of the State and for which requirements are set 

forth under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Mississippi’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 
479

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to 

Mississippi’s SIP.

(c) Notwithstanding the provisions of paragraph (b) of this 

section, if, at the time of the approval of Mississippi’s SIP 

revision described in paragraph (b) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 
480

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart AA—Missouri

■ 25. Section 52.1326 is amended by:

a. Removing paragraph (a)(3); and

b. Revising paragraph (b).

The revisions read as follows:

§ 52.1326 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Missouri and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Missouri and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 
481

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Missouri’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Missouri’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 
482

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart CC—Nebraska

§ 52.1428 [Amended]

■ 26. Section 52.1428 is amended by:

a. In paragraph (a), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and

b. Removing paragraph (c).

§ 52.1429 [Amended]

■ 27. Section 52.1429 is amended by:

a. In paragraph (a), removing the words “in part”, and 

after the text “§ 52.39” adding the words “for those sources and 

units”; and

b. Removing paragraph (c).

Subpart FF—New Jersey

■ 28. Section 52.1584 is amended by revising paragraph (e) to 

read as follows:

§ 52.1584 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *
483

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(e)(1) The owner and operator of each source and each unit 

located in the State of New Jersey and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of New Jersey and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to New Jersey’s 

State Implementation Plan (SIP) as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 

Implementation Plan (FIP) under § 52.38(b), except to the extent 

the Administrator’s approval is partial or conditional, provided 

that because the CSAPR FIP was promulgated as a partial rather 

than full remedy for an obligation of the State to address 

interstate air pollution, the SIP revision likewise will 

constitute a partial rather than full remedy for the State’s 
484

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

obligation unless provided otherwise in the Administrator’s 

approval of the SIP revision.

(3) Notwithstanding the provisions of paragraph (e)(2) of 

this section, if, at the time of the approval of New Jersey’s 

SIP revision described in paragraph (e)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart HH—New York

■ 29. Section 52.1684 is amended by:

a. In paragraph (a)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and 

b. Revising paragraph (b).

The revisions read as follows:
485

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

§ 52.1684 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of New York and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of New York and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to New York’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 
486

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to New York’s 

SIP.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of New York’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 
487

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.1685 [Amended] 

■ 30. Section 52.1685, paragraph (a) is amended by removing the 

words “in part”, and after the text “§ 52.39” adding the words 

“for those sources and units”.

Subpart II—North Carolina

■ 31. Section 52.1784 is amended by:

a. In paragraph (a)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”;

b. Revising paragraph (b)(1); and

c. Removing and reserving paragraph (b)(2).

The revisions read as follows:

§ 52.1784 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of North Carolina and Indian country within 

the borders of the State and for which requirements are set

forth under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 
488

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

requirements with regard to emissions occurring in 2015 and 

2016.

* * * * *

§ 52.1785 [Amended] 

■ 32. Section 52.1785, paragraph (a) is amended by removing the 

words “in part”, and after the text “§ 52.39” adding the words 

“for those sources and units”.

Subpart KK—Ohio

■ 33. Section 52.1882 is amended by revising paragraph (b) to 

read as follows:

§ 52.1882 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Ohio and for which requirements are set 

forth under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Ohio and for which requirements are set 

forth under the CSAPR NOX Ozone Season Group 2 Trading Program in 
489

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

will be eliminated by the promulgation of an approval by the 

Administrator of a revision to Ohio’s State Implementation Plan 

(SIP) as correcting the SIP’s deficiency that is the basis for

the CSAPR Federal Implementation Plan (FIP) under § 52.38(b), 

except to the extent the Administrator’s approval is partial or 

conditional, provided that because the CSAPR FIP was promulgated 

as a partial rather than full remedy for an obligation of the 

State to address interstate air pollution, the SIP revision 

likewise will constitute a partial rather than full remedy for 

the State’s obligation unless provided otherwise in the 

Administrator’s approval of the SIP revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Ohio’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 
490

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart LL—Oklahoma

■ 34. Section 52.1930 is revised to read as follows:

§ 52.1930 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

(a) The owner and operator of each source and each unit 

located in the State of Oklahoma and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(b) The owner and operator of each source and each unit 

located in the State of Oklahoma and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 
491

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

by the promulgation of an approval by the Administrator of a 

revision to Oklahoma’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 

of an approval by the Administrator of a revision to Oklahoma’s 

SIP.

(c) Notwithstanding the provisions of paragraph (b) of this 

section, if, at the time of the approval of Oklahoma’s SIP 

revision described in paragraph (b) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 
492

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart NN—Pennsylvania

■ 35. Section 52.2040 is amended by revising paragraph (b) to 

read as follows:

§ 52.2040 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Pennsylvania and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Pennsylvania and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 
493

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Pennsylvania’s 

State Implementation Plan (SIP) as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 

Implementation Plan (FIP) under § 52.38(b), except to the extent 

the Administrator’s approval is partial or conditional, provided 

that because the CSAPR FIP was promulgated as a partial rather 

than full remedy for an obligation of the State to address 

interstate air pollution, the SIP revision likewise will 

constitute a partial rather than full remedy for the State’s 

obligation unless provided otherwise in the Administrator’s 

approval of the SIP revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Pennsylvania’s 

SIP revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 
494

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart PP—South Carolina

■ 36. Section 52.2140 is amended by:

a. In paragraph (a)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”;

b. Revising paragraph (b)(1); and

c. Removing and reserving paragraph (b)(2).

The revisions read as follows:

§ 52.2140 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of South Carolina and Indian country within 

the borders of the State and for which requirements are set 

forth under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

* * * * *

§ 52.2141 [Amended] 
495

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■ 37. Section 52.2141, paragraph (a) is amended by removing the 

words “in part”, and after the text “§ 52.39” adding the words 

“for those sources and units”.

Subpart RR—Tennessee

■ 38. Section 52.2240 is amended by:

a. In paragraph (d)(1), removing the last sentence; and

b. Revising paragraph (e).

The revisions read as follows:

§ 52.2240 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(e)(1) The owner and operator of each source and each unit 

located in the State of Tennessee and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of Tennessee and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 
496

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Tennessee’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional. 

(3) Notwithstanding the provisions of paragraph (e)(2) of 

this section, if, at the time of the approval of Tennessee’s SIP 

revision described in paragraph (e)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.2241 [Amended] 

■ 39. Section 52.2241, paragraph (c)(1) is amended by removing 

the last sentence.

Subpart SS—Texas
497

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■ 40. Section 52.2283 is amended by:

a. In paragraph (c)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and 

b. Revising paragraph (d).

The revisions read as follows:

§ 52.2283 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(d)(1) The owner and operator of each source and each unit 

located in the State of Texas and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.

(2) The owner and operator of each source and each unit 

located in the State of Texas and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 
498

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Texas’ State Implementation Plan (SIP) as correcting 

the SIP’s deficiency that is the basis for the CSAPR Federal 

Implementation Plan (FIP) under § 52.38(b) for those sources and 

units, except to the extent the Administrator’s approval is 

partial or conditional, provided that because the CSAPR FIP was 

promulgated as a partial rather than full remedy for an 

obligation of the State to address interstate air pollution, the 

SIP revision likewise will constitute a partial rather than full 

remedy for the State’s obligation unless provided otherwise in 

the Administrator’s approval of the SIP revision. The obligation 

to comply with such requirements with regard to sources and 

units located in Indian country within the borders of the State 

will not be eliminated by the promulgation of an approval by the 

Administrator of a revision to Texas’ SIP.

(3) Notwithstanding the provisions of paragraph (d)(2) of 

this section, if, at the time of the approval of Texas’ SIP 

revision described in paragraph (d)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 
499

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.2284 [Amended] 

■ 41. Section 52.2284, paragraph (c)(1) is amended by removing 

the words “in part”, and after the text “§ 52.39” adding the 

words “for those sources and units”.

Subpart VV—Virginia

■ 42. Section 52.2440 is amended by revising paragraph (b) to 

read as follows:

§ 52.2440 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of Virginia and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.
500

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(2) The owner and operator of each source and each unit 

located in the State of Virginia and for which requirements are 

set forth under the CSAPR NOX Ozone Season Group 2 Trading 

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to Virginia’s State 

Implementation Plan (SIP) as correcting the SIP’s deficiency 

that is the basis for the CSAPR Federal Implementation Plan 

(FIP) under § 52.38(b), except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of Virginia’s SIP 

revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 
501

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart XX—West Virginia

■ 43. Section 52.2540 is amended by revising paragraph (b) to 

read as follows:

§ 52.2540 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(b)(1) The owner and operator of each source and each unit 

located in the State of West Virginia and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 1 Trading 

Program in subpart BBBBB of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2015 and 2016.

(2) The owner and operator of each source and each unit 

located in the State of West Virginia and for which requirements 

are set forth under the CSAPR NOX Ozone Season Group 2 Trading 
502

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

Program in subpart EEEEE of part 97 of this chapter must comply 

with such requirements with regard to emissions occurring in 

2017 and each subsequent year. The obligation to comply with 

such requirements will be eliminated by the promulgation of an 

approval by the Administrator of a revision to West Virginia’s 

State Implementation Plan (SIP) as correcting the SIP’s 

deficiency that is the basis for the CSAPR Federal 

Implementation Plan (FIP) under § 52.38(b), except to the extent 

the Administrator’s approval is partial or conditional, provided 

that because the CSAPR FIP was promulgated as a partial rather 

than full remedy for an obligation of the State to address 

interstate air pollution, the SIP revision likewise will 

constitute a partial rather than full remedy for the State’s 

obligation unless provided otherwise in the Administrator’s 

approval of the SIP revision.

(3) Notwithstanding the provisions of paragraph (b)(2) of 

this section, if, at the time of the approval of West Virginia’s 

SIP revision described in paragraph (b)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 
503

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version, but it is not the official version.

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

Subpart YY—Wisconsin

■ 44. Section 52.2587 is amended by:

a. In paragraph (d)(1), removing the words “in part”, and 

after the text “§ 52.38(a)” adding the words “for those sources 

and units”; and

b. Revising paragraph (e).

The revisions read as follows:

§ 52.2587 Interstate pollutant transport provisions; What are 

the FIP requirements for decreases in emissions of nitrogen 

oxides?

* * * * *

(e)(1) The owner and operator of each source and each unit 

located in the State of Wisconsin and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 1 Trading Program in 

subpart BBBBB of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2015 and 

2016.
504

This document is a prepublication version, signed by EPA Administrator, Gina 

McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(2) The owner and operator of each source and each unit 

located in the State of Wisconsin and Indian country within the 

borders of the State and for which requirements are set forth 

under the CSAPR NOX Ozone Season Group 2 Trading Program in 

subpart EEEEE of part 97 of this chapter must comply with such 

requirements with regard to emissions occurring in 2017 and each 

subsequent year. The obligation to comply with such requirements 

with regard to sources and units in the State will be eliminated 

by the promulgation of an approval by the Administrator of a 

revision to Wisconsin’s State Implementation Plan (SIP) as 

correcting the SIP’s deficiency that is the basis for the CSAPR 

Federal Implementation Plan (FIP) under § 52.38(b) for those 

sources and units, except to the extent the Administrator’s 

approval is partial or conditional, provided that because the 

CSAPR FIP was promulgated as a partial rather than full remedy 

for an obligation of the State to address interstate air 

pollution, the SIP revision likewise will constitute a partial 

rather than full remedy for the State’s obligation unless 

provided otherwise in the Administrator’s approval of the SIP 

revision. The obligation to comply with such requirements with 

regard to sources and units located in Indian country within the 

borders of the State will not be eliminated by the promulgation 
505

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

of an approval by the Administrator of a revision to Wisconsin’s 

SIP.

(3) Notwithstanding the provisions of paragraph (e)(2) of 

this section, if, at the time of the approval of Wisconsin’s SIP 

revision described in paragraph (e)(2) of this section, the 

Administrator has already started recording any allocations of 

CSAPR NOX Ozone Season Group 2 allowances under subpart EEEEE of 

part 97 of this chapter to units in the State for a control 

period in any year, the provisions of subpart EEEEE of part 97 

of this chapter authorizing the Administrator to complete the 

allocation and recordation of CSAPR NOX Ozone Season Group 2 

allowances to units in the State for each such control period 

shall continue to apply, unless provided otherwise by such 

approval of the State’s SIP revision.

§ 52.2588 [Amended] 

■ 45. Section 52.2588, paragraph (c)(1) is amended by removing 

the words “in part”, and after the text “§ 52.39” adding the 

words “for those sources and units”.

PART 78—APPEAL PROCEDURES

■ 46. The authority citation for part 78 continues to read as 

follows:

Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, 

and 7651, et seq.
506

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■ 47. Section 78.1 is amended by:

a. Removing the text “TR” wherever it appears and adding in 

its place the text “CSAPR”;

b. Revising paragraphs (a)(1) and (b)(2)(iv) and (v); 

c. In paragraph (b)(3)(iii), after the semicolon adding the 

word “and”;

d. In paragraph (b)(3)(iv), removing the semicolon and 

adding in its place a period;

e. Revising paragraph (b)(6) introductory text;

f. In paragraph (b)(9)(iv), after the text “§ 96.361” 

adding the words “of this chapter”;

g. In paragraph (b)(12)(iv), after the text “§ 97.361” 

adding the words “of this chapter”;

h. In paragraph (b)(13)(i), after the words “decision on” 

adding the word “the”;

i. Revising paragraph (b)(14)(i);

j. In paragraphs (b)(14)(ii), (iii) and (v), after the 

words “Ozone Season” adding the text “Group 1”;

k. Adding paragraph (b)(14)(viii);

l. In paragraphs (b)(15)(i) and (16)(i), after the words 

“decision on” adding the word “the”;

m. In paragraphs (b)(16)(ii), (iii), and (v), removing the 

text “Group 1” and adding in its place the text “Group 2”; and
507

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

n. Redesignating paragraph (b)(17) as paragraph (b)(18) and 

adding a new paragraph (b)(17). 

The revisions and additions read as follows:

§ 78.1 Purpose and scope.

(a)(1)(i) This part shall govern appeals of any final 

decision of the Administrator under: 

(A) Part 72, 73, 74, 75, 76, or 77 of this chapter. 

(B) Subparts A through J of part 97 of this chapter.

(C) Subparts AA through II, AAA through III, or AAAA 

through IIII of part 96 of this chapter or State regulations 

approved under § 51.123(o)(1) or (2) or (aa)(1) or (2) of this 

chapter or § 51.124(o)(1) or (2) of this chapter. 

(D) Subparts AA through II, AAA through III, or AAAA 

through IIII of part 97 of this chapter. 

(E) Subpart AAAAA, BBBBB, CCCCC, DDDDD, or EEEEE of part 97 

of this chapter or State regulations approved under 

§ 52.38(a)(4) or (5) or (b)(4), (5), (6), (8), or (9) of this 

chapter or § 52.39(e), (f), (h), or (i) of this chapter. 

(F) Subpart RR of part 98 of this chapter. 

(ii) Notwithstanding paragraph (a)(1)(i) of this section, 

matters listed in § 78.3(d) and preliminary, procedural, or 

intermediate decisions, such as draft Acid Rain permits, may not 

be appealed. 
508

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(iii) All references in paragraph (b) of this section and 

in § 78.3 to subparts AA through II of part 96 of this chapter, 

subparts AAA through III of part 96 of this chapter, and 

subparts AAAA through IIII of part 96 of this chapter shall be 

read to include the comparable provisions in State regulations 

approved under § 51.123(o)(1) or (2) of this chapter, 

§ 51.124(o)(1) or (2) of this chapter, and § 51.123(aa)(1) or 

(2) of this chapter, respectively. 

(iv) All references in paragraph (b) of this section and in 

§ 78.3 to subpart AAAAA of part 97 of this chapter, subpart 

BBBBB of part 97 of this chapter, subpart CCCCC of part 97 of 

this chapter, subpart DDDDD of part 97 of this chapter, and 

subpart EEEEE of part 97 of this chapter shall be read to 

include the comparable provisions in State regulations approved 

under § 52.38(a)(4) or (5) of this chapter, § 52.38(b)(4) or (5) 

of this chapter, § 52.39(e) or (f) of this chapter, § 52.39(h) 

or (i) of this chapter, and § 52.38(b)(6), (8), or (9) of this 

chapter, respectively.

* * * * * 

(b) * * *

(2) * * *

(iv) The decision on the allocation of allowances under 

subpart F of part 73 of this chapter;
509

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(v) The decision on the sale or return of allowances and 

transfer of proceeds under subpart E of part 73 of this chapter; 

and

* * * * * 

(6) Under subparts A through J of part 97 of this chapter,

* * * * * 

(14) * * *

(i) The decision on the allocation of CSAPR NOX Ozone Season 

Group 1 allowances under § 97.511(a)(2) and (b) of this chapter.

* * * * * 

(viii) The decision on the removal of CSAPR NOX Ozone Season 

Group 1 allowances from an Allowance Management System account 

and the allocation to such account or another account of CSAPR 

NOX Ozone Season Group 2 allowances under § 97.526(c) of this 

chapter.

* * * * * 

(17) Under subpart EEEEE of part 97 of this chapter,

(i) The decision on the allocation of CSAPR NOX Ozone Season 

Group 2 allowances under § 97.811(a)(2) and (b) of this chapter.

(ii) The decision on the transfer of CSAPR NOX Ozone Season 

Group 2 allowances under § 97.823 of this chapter.
510

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(iii) The decision on the deduction of CSAPR NOX Ozone 

Season Group 2 allowances under §§ 97.824 and 97.825 of this 

chapter.

(iv) The correction of an error in an Allowance Management 

System account under § 97.827 of this chapter.

(v) The adjustment of information in a submission and the 

decision on the deduction and transfer of CSAPR NOX Ozone Season 

Group 2 allowances based on the information as adjusted under 

§ 97.828 of this chapter.

(vi) The finalization of control period emissions data, 

including retroactive adjustment based on audit.

(vii) The approval or disapproval of a petition under 

§ 97.835 of this chapter.

* * * * * 

■ 48. Section 78.3 is amended by:

a. In paragraph (a)(1) introductory text, removing the 

words “of this part”;

b. Revising paragraph (a)(3) introductory text;

c. In paragraph (a)(8) introductory text and paragraph 

(a)(9) introductory text, after the text “part 97” adding the 

words “of this chapter”;

d. Revising paragraph (a)(10) introductory text and 

paragraph (a)(11) introductory text; 
511

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version, but it is not the official version.

e. In paragraph (b)(1), removing the words “of this part”

two times; and

f. Revising paragraphs (b)(3)(i), (c)(7), and (d). 

The revisions read as follows:

§ 78.3 Petition for administrative review and request for 

evidentiary hearing.

(a) * * *

(3) The following persons may petition for administrative 

review of a decision of the Administrator that is made under 

subparts A through J of part 97 of this chapter and that is 

appealable under § 78.1(a):

* * * * * 

(10) The following persons may petition for administrative 

review of a decision of the Administrator that is made under 

subpart AAAAA, BBBBB, CCCCC, DDDDD, or EEEEE of part 97 of this 

chapter and that is appealable under § 78.1(a):

* * * * * 

(11) The following persons may petition for administrative 

review of a decision of the Administrator that is made under 

subpart RR of part 98 of this chapter and that is appealable 

under § 78.1(a):

* * * * * 

(b) * * *
512

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version, but it is not the official version.

(3) * * *

(i) Serve a copy of the petition on the Administrator and 

the following person (unless such person is the petitioner):

(A) The designated representative or authorized account 

representative, for a petition under paragraph (a)(1), (2), 

(10), or (11) of this section.

(B) The NOX authorized account representative, for a 

petition under paragraph (a)(3) of this section.

(C) The CAIR designated representative or CAIR authorized 

account representative, for a petition under paragraph (a)(4), 

(5), (6), (7), (8), or (9) of this section.

* * * * * 

(c) * * *

(7) Any revised or alternative action of the Administrator 

sought by the petitioner as necessary to implement the 

requirements, purposes, or policies of, as appropriate: 

(i) Title IV of the Act. 

(ii) Subparts A through J of part 97 of this chapter.

(iii) Subparts AA through II, AAA through III, or AAAA 

through IIII of part 96 of this chapter. 

(iv) Subparts AA through II, AAA through III, or AAAA 

through IIII of part 97 of this chapter. 
513

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version, but it is not the official version.

(v) Subpart AAAAA, BBBBB, CCCCC, DDDDD, or EEEEE of part 97 

of this chapter.

(d) In no event shall a petition for administrative review 

be filed, or review be available under this part, with regard 

to:

(1) Actions of the Administrator under sections 112(r), 

113, 114, 120, 301, and 303 of the Act.

(2) The reliance by the Administrator on: 

(i) A certificate of representation submitted by a 

designated representative or an application for a general 

account submitted by an authorized account representative under 

the Acid Rain Program or subpart AAAAA, BBBBB, CCCCC, DDDDD, or 

EEEEE of part 97 of this chapter. 

(ii) An account certificate of representation or an 

application for a general account submitted by a NOX authorized 

account representative under the NOX Budget Trading Program. 

(iii) A certificate of representation submitted by a CAIR 

designated representative or an application for a general 

account submitted by a CAIR authorized account representative 

under subparts AA through II, AAA through III, or AAAA through 

IIII of part 96 of this chapter or subparts AA through II, AAA 

through III, or AAAA through IIII of part 97 of this chapter.
514

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McCarthy, on 9/7/2016. We have taken steps to ensure the accuracy of this 

version, but it is not the official version.

(3) Any provision or requirement of part 72, 73, 74, 75, 

76, or 77 of this chapter, including the standard requirements 

under § 72.9 of this chapter and any emission monitoring or 

reporting requirements.

(4) Any provision or requirement of subparts A through J of 

part 97 of this chapter, including the standard requirements 

under § 97.6 of this chapter and any emission monitoring or 

reporting requirements.

(5) Any provision or requirement of subparts AA through II, 

AAA through III, or AAAA through IIII of part 96 of this 

chapter, including the standard requirements under § 96.106, 

§ 96.206, or § 96.306 of this chapter, respectively, and any 

emission monitoring or reporting requirements.

(6) Any provision or requirement of subparts AA through II, 

AAA through III, or AAAA through IIII of part 97 of this 

chapter, including the standard requirements under § 97.106, 

§ 97.206, or § 97.306 of this chapter, respectively, and any 

emission monitoring or reporting requirements.

(7) Any provision or requirement of subpart AAAAA, BBBBB, 

CCCCC, DDDDD, or EEEEE of part 97 of this chapter, including the 

standard requirements under § 97.406, § 97.506, § 97.606, 

§ 97.706, or § 97.806 of this chapter, respectively, and any 

emission monitoring or reporting requirements.
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(8) Any provision or requirement of subpart RR of part 98 

of this chapter.

■ 49. Section 78.4 is amended by: 

a. Revising paragraph (a)(1)(i);

b. In paragraph (a)(1)(ii), removing the word “filing” and 

adding in its place the word “filings”; 

c. Revising paragraph (a)(1)(iii); and

d. In paragraphs (d), (e)(1), and (g), removing the words 

“of this part”.

The revisions read as follows:

§ 78.4 Filings.

(a)(1) * * *

(i) Any filings on behalf of owners and operators of an 

affected unit or affected source, CSAPR NOX Annual unit or CSAPR 

NOX Annual source, CSAPR NOX Ozone Season Group 1 unit or CSAPR 

NOX Ozone Season Group 1 source, CSAPR NOX Ozone Season Group 2 

unit or CSAPR NOX Ozone Season Group 2 source, CSAPR SO2 Group 1 

unit or CSAPR SO2 Group 1 source, or CSAPR SO2 Group 2 unit or 

CSAPR SO2 Group 2 source shall be signed by the designated 

representative. Any filings on behalf of persons with an 

ownership interest with respect to allowances, CSAPR NOX Annual 

allowances, CSAPR NOX Ozone Season Group 1 allowances, CSAPR NOX

Ozone Season Group 2 allowances, CSAPR SO2 Group 1 allowances, or 
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CSAPR SO2 Group 2 allowances in a general account shall be signed 

by the authorized account representative.

* * * * * 

(iii) Any filings on behalf of owners and operators of a 

CAIR NOX unit or CAIR NOX source, CAIR SO2 unit or CAIR SO2

source, or CAIR NOX Ozone Season unit or CAIR NOX Ozone Season 

source shall be signed by the CAIR designated representative. 

Any filings on behalf of persons with an ownership interest with 

respect to CAIR NOX allowances, CAIR SO2 allowances, or CAIR NOX

Ozone Season allowances in a general account shall be signed by 

the CAIR authorized account representative.

* * * * * 

PART 97—FEDERAL NOX BUDGET TRADING PROGRAM, CAIR NOX AND SO2

TRADING PROGRAMS, AND CSAPR NOX AND SO2 TRADING PROGRAMS

■ 50. The heading of part 97 is revised to read as set forth 

above.

■ 51. The authority citation for part 97 continues to read as 

follows:

Authority: 42 U.S.C. 7401, 7403, 7410, 7426, 7601, and 

7651, et seq.

Appendices A through D to Part 97 [Redesignated]

■ 52. Appendices A, B, C, and D to part 97 are redesignated as 

appendices A, B, C, and D to subpart E of part 97.
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Subpart E—NOX Allowance Allocations

§ 97.40 [Amended]

■ 53. Section 97.40 is amended by removing the text “appendix C 

of this part” and adding in its place the text “appendix C to 

this subpart”.

§ 97.41 [Amended]

■ 54. Section 97.41, paragraph (a) is amended by removing the 

text “appendices A and B of this part” and adding in its place 

the text “appendices A and B to this subpart”.

§ 97.43 [Amended]

■ 55. Section 97.43 is amended by:

a. In paragraph (c)(3), removing the text “appendix D of 

this part” and adding in its place the text “appendix D to this 

subpart”; and

b. In paragraph (c)(4), removing the text “appendix D of 

this part” two times and adding in its place the text “appendix 

D to this subpart”.

Subpart AAAAA—CSAPR NOX Annual Trading Program

■ 56. The heading of subpart AAAAA of part 97 is revised to read 

as set forth above.

§ 97.401 [Amended]

■ 57. Section 97.401 is amended by removing the text “Transport 

Rule (TR) NOX Annual Trading Program” and adding in its place the 
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text “Cross-State Air Pollution Rule (CSAPR) NOX Annual Trading 

Program”.

§§ 97.402 through 97.435 [Amended]

■ 58. Sections 97.402 through 97.435 are amended by removing the 

text “TR” wherever it appears and adding in its place the text 

“CSAPR”.

■ 59. Section 97.402 is amended by:

a. Revising the section’s introductory text and the 

definitions “Allowable NOX emission rate” and “Allowance 

Management System”;

b. In the definition “Allowance Management System account”, 

removing the word “holding” and adding in its place the text 

“auction, holding”;

c. Revising the definition “Alternate designated 

representative”;

d. Adding in alphabetical order the definition “Auction”;

e. In the definition “Cogeneration system”, removing the 

words “steam turbine”;

f. In the definition “Commence commercial operation”, 

paragraph (2) introductory text, after the words “defined in” 

adding the word “the”;
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g. In the definition “Common designated representative’s 

share”, paragraph (2), removing the words “and of the total” and 

adding in their place the words “and the total”;

h. In the newly amended definition title “CSAPR NOX Annual 

allowances held or hold CSAPR NO4 Annual allowances”, removing 

the text “NO4” and adding in its place the text “NOX”;

i. Removing the newly amended definition “CSAPR NOX Ozone 

Season Trading Program”;

j. Adding in alphabetical order the definitions “CSAPR NOX

Ozone Season Group 1 Trading Program” and “CSAPR NOX Ozone Season 

Group 2 Trading Program”;

k. Revising the newly amended definitions “CSAPR SO2 Group 1 

Trading Program” and “CSAPR SO2 Group 2 Trading Program” and the 

definition “Designated representative”;

l. In the definition “Fossil fuel”, paragraph (2), removing 

the text “§§” and adding in its place the text “§”;

m. Removing the definition “Gross electrical output”;

n. Revising the definitions “Heat input”, “Heat input 

rate”, and “Heat rate”;

o. In the definition title “Maximum design heat input”, 

after the words “heat input” adding the word “rate”;

p. Italicizing the newly amended definition title “Newly 

affected CSAPR NOX Annual unit”;
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q. Revising the definition “Potential electrical output 

capacity”; and

r. In the definition “Sequential use of energy”, paragraph 

(2), after the word “from” adding the word “a”.

The revisions and additions read as follows:

§ 97.402 Definitions

The terms used in this subpart shall have the meanings set 

forth in this section as follows, provided that any term that 

includes the acronym “CSAPR” shall be considered synonymous with 

a term that is used in a SIP revision approved by the 

Administrator under § 52.38 or § 52.39 of this chapter and that 

is substantively identical except for the inclusion of the 

acronym “TR” in place of the acronym “CSAPR”:

* * * * *

Allowable NOX emission rate means, for a unit, the most 

stringent State or federal NOX emission rate limit (in lb/MWh or, 

if in lb/mmBtu, converted to lb/MWh by multiplying it by the 

unit's heat rate in mmBtu/MWh) that is applicable to the unit 

and covers the longest averaging period not exceeding one year.

Allowance Management System means the system by which the 

Administrator records allocations, auctions, transfers, and 

deductions of CSAPR NOX Annual allowances under the CSAPR NOX

Annual Trading Program. Such allowances are allocated, 
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auctioned, recorded, held, transferred, or deducted only as 

whole allowances.

* * * * *

Alternate designated representative means, for a CSAPR NOX

Annual source and each CSAPR NOX Annual unit at the source, the 

natural person who is authorized by the owners and operators of 

the source and all such units at the source, in accordance with 

this subpart, to act on behalf of the designated representative 

in matters pertaining to the CSAPR NOX Annual Trading Program. If 

the CSAPR NOX Annual source is also subject to the Acid Rain 

Program, CSAPR NOX Ozone Season Group 1 Trading Program, CSAPR 

NOX Ozone Season Group 2 Trading Program, CSAPR SO2 Group 1 

Trading Program, or CSAPR SO2 Group 2 Trading Program, then this 

natural person shall be the same natural person as the alternate 

designated representative as defined in the respective program.

* * * * *

Auction means, with regard to CSAPR NOX Annual allowances, 

the sale to any person by a State or permitting authority, in 

accordance with a SIP revision submitted by the State and 

approved by the Administrator under § 52.38(a)(4) or (5) of this 

chapter, of such CSAPR NOX Annual allowances to be initially 

recorded in an Allowance Management System account.

* * * * *
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CSAPR NOX Ozone Season Group 1 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart BBBBB of this 

part and § 52.38(b)(1), (2)(i) and (ii), (3) through (5), and 

(10) through (12) of this chapter (including such a program that 

is revised in a SIP revision approved by the Administrator under 

§ 52.38(b)(3) or (4) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(5) 

of this chapter), as a means of mitigating interstate transport 

of ozone and NOX.

CSAPR NOX Ozone Season Group 2 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart EEEEE of this 

part and § 52.38(b)(1), (2)(i) and (iii), (6) through (11), and 

(13) of this chapter (including such a program that is revised 

in a SIP revision approved by the Administrator under 

§ 52.38(b)(7) or (8) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(6) 

or (9) of this chapter), as a means of mitigating interstate 

transport of ozone and NOX.

CSAPR SO2 Group 1 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart CCCCC of this part and § 52.39(a), 
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(b), (d) through (f), and (j) through (l) of this chapter 

(including such a program that is revised in a SIP revision 

approved by the Administrator under § 52.39(d) or (e) of this 

chapter or that is established in a SIP revision approved by the 

Administrator under § 52.39(f) of this chapter), as a means of 

mitigating interstate transport of fine particulates and SO2.

CSAPR SO2 Group 2 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart DDDDD of this part and § 52.39(a), 

(c), (g) through (k), and (m) of this chapter (including such a 

program that is revised in a SIP revision approved by the 

Administrator under § 52.39(g) or (h) of this chapter or that is 

established in a SIP revision approved by the Administrator 

under § 52.39(i) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.

Designated representative means, for a CSAPR NOX Annual 

source and each CSAPR NOX Annual unit at the source, the natural 

person who is authorized by the owners and operators of the 

source and all such units at the source, in accordance with this 

subpart, to represent and legally bind each owner and operator 

in matters pertaining to the CSAPR NOX Annual Trading Program. If 

the CSAPR NOX Annual source is also subject to the Acid Rain 

Program, CSAPR NOX Ozone Season Group 1 Trading Program, CSAPR 
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NOX Ozone Season Group 2 Trading Program, CSAPR SO2 Group 1 

Trading Program, or CSAPR SO2 Group 2 Trading Program, then this 

natural person shall be the same natural person as the 

designated representative as defined in the respective program.

* * * * *

Heat input means, for a unit for a specified period of unit 

operating time, the product (in mmBtu) of the gross calorific 

value of the fuel (in mmBtu/lb) fed into the unit multiplied by 

the fuel feed rate (in lb of fuel/time) and unit operating time, 

as measured, recorded, and reported to the Administrator by the 

designated representative and as modified by the Administrator 

in accordance with this subpart and excluding the heat derived 

from preheated combustion air, recirculated flue gases, or 

exhaust.

Heat input rate means, for a unit, the quotient (in 

mmBtu/hr) of the amount of heat input for a specified period of 

unit operating time (in mmBtu) divided by unit operating time 

(in hr) or, for a unit and a specific fuel, the amount of heat 

input attributed to the fuel (in mmBtu) divided by the unit 

operating time (in hr) during which the unit combusts the fuel.

Heat rate means, for a unit, the quotient (in mmBtu/unit of 

load) of the unit's maximum design heat input rate (in Btu/hr) 
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divided by the product of 1,000,000 Btu/mmBtu and the unit's 

maximum hourly load.

* * * * *

Potential electrical output capacity means, for a unit (in 

MWh/yr), 33 percent of the unit's maximum design heat input rate 

(in Btu/hr), divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, 

and multiplied by 8,760 hr/yr.

* * * * *

§ 97.403 [Amended]

■ 60. Section 97.403 is amended by:

a. Adding in alphabetical order the list entry “CSAPR—

Cross-State Air Pollution Rule”;

b. Removing the list entry “kW—kilowatt electrical”;

c. Removing the list entry “kWh—kilowatt hour” and adding 

in its place the entry “kWh—kilowatt-hour”;

d. Removing the list entry “MWh—megawatt hour” and adding 

in its place the entry “MWh—megawatt-hour”; and

e. Adding in alphabetical order the list entries “SIP—State 

implementation plan” and “TR—Transport Rule”.

§ 97.404 [Amended]

■ 61. Section 97.404 is amended by:

a. In paragraph (b)(1)(i)(B), removing the word “electric” 

and adding in its place the word “electrical”;
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b. In paragraph (b)(2)(ii), removing the text “paragraph 

(b)(1)(i)” and adding in its place the text “paragraph 

(b)(2)(i)”; and

c. Italicizing the headings of paragraphs (c)(1) and (2).

§ 97.405 [Amended]

■ 62. Section 97.405, paragraph (b) is amended by italicizing 

the heading.

§ 97.406 [Amended]

■ 63. Section 97.406 is amended by: 

a. Italicizing the headings of paragraphs (c)(1) and (2) 

and (c)(4) through (7);

b. In paragraph (c)(2)(ii), after the words “immediately 

after” adding the words “the year of”;

c. In paragraph (c)(4) heading, after the words “Vintage 

of” adding the text “CSAPR NOX Annual”; and

d. In paragraphs (c)(4)(i) and (ii), after the word 

“allocated” adding the words “or auctioned”. 

■ 64. Section 97.410 is amended by:

a. Revising the section heading;

b. In paragraph (a) introductory text, removing the text 

“unit-set asides” and adding in its place the text “unit setasides”;

c. In paragraphs (a)(1) through (23):
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i. Removing the words “annual trading” and adding in their 

place the words “Annual trading”;

ii. Removing the text “NOX annual new” and adding in its 

place the word “new”; and 

iii. Removing the text “NOX annual Indian” and adding in its 

place the word “Indian”;

d. Adding and reserving paragraphs (a)(11)(vi) and 

(a)(16)(vi);

e. In paragraphs (b)(1) through (23), removing the text “NOX

annual”; and

f. Revising paragraph (c).

The revisions read as follows:

§ 97.410 State NOX Annual trading budgets, new unit set-asides, 

Indian country new unit set-asides, and variability limits.

* * * * *

(c) Each State NOX Annual trading budget in this section 

includes any tons in a new unit set-aside or Indian country new 

unit set-aside but does not include any tons in a variability 

limit.

§ 97.411 Timing requirements for CSAPR NOX Annual allowance 

allocations.

■ 65. Section 97.411 is amended by:

a. Revising the section heading to read as set forth above;
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b. Italicizing the headings of paragraphs (b)(1) and (2);

c. In paragraph (b)(1)(iii), after the text “November 30 

of” adding the word “the”;

d. In paragraph (b)(1)(iv)(B), removing the words “the 

each” and adding in their place the word “each”;

e. In paragraph (b)(2)(iii), after the text “November 30 

of” adding the word “the”;

f. In paragraph (b)(2)(iv)(B), removing the words “the 

each” and adding in their place the word “each”;

g. In paragraph (c)(1)(ii), removing the text 

“§ 52.38(a)(3), (4), or (5)” and adding in its place the text 

“§ 52.38(a)(4) or (5)”;

h. In paragraph (c)(5)(i)(B), after the text “§ 52.38(a)(4) 

or (5)” adding the words “of this chapter”;

i. In paragraph (c)(5)(ii) introductory text, removing the 

words “this paragraph” and adding in their place the words “this 

section”;

j. In paragraph (c)(5)(ii)(B), after the text 

“§ 52.38(a)(4) or (5)” adding the words “of this chapter”; and

k. In paragraph (c)(5)(iii), removing the words “this 

paragraph” and adding in their place the words “this section”.

§ 97.412 CSAPR NOX Annual allowance allocations to new units.

■ 66. Section 97.412 is amended by:
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a. Revising the section heading to read as set forth above;

b. In paragraph (a)(2), removing the text “§§” and adding 

in its place the text “§”;

c. In paragraph (a)(4)(i), removing the text “paragraph 

(a)(1)(i) through (iii)” and adding in its place the text 

“paragraphs (a)(1)(i) through (iii)”;

d. In paragraph (a)(4)(ii), after the text “paragraph 

(a)(4)(i)” adding the words “of this section”;

e. In paragraph (a)(9)(i), after the text “November 30 of” 

adding the word “the”;

f. In paragraph (b)(4)(ii), after the text “paragraph 

(b)(4)(i)” adding the words “of this section”;

g. In paragraph (b)(9)(i), after the text “November 30 of” 

adding the word “the”; and

h. In paragraph (b)(10)(ii), after the text “§ 52.38(a)(4) 

or (5)” adding the words “of this chapter”.

■ 67. Section 97.416 is amended by:

a. In paragraph (a)(1), removing the word “Country” and 

adding in its place the word “country”; and

b. Adding paragraph (c).

The additions read as follows:

§ 97.416 Certificate of representation.

* * * * *
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(c) A certificate of representation under this section that 

complies with the provisions of paragraph (a) of this section 

except that it contains the acronym “TR” in place of the acronym 

“CSAPR” in the required certification statements will be 

considered a complete certificate of representation under this 

section, and the certification statements included in such 

certificate of representation will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.

■ 68. Section 97.420 is amended by:

a. Italicizing the headings of paragraphs (c)(1) through 

(6);

b. Adding paragraph (c)(1)(iv);

c. In paragraph (c)(2)(i) introductory text, removing the 

text “paragraph (b)(1)” and adding in its place the text 

“paragraph (c)(1)”;

d. Adding paragraph (c)(2)(iv):

e. In paragraph (c)(4)(i), removing the text “paragraph 

(b)(1)” and adding in its place the text “paragraph (c)(1)”;

f. In paragraph (c)(5)(iii)(D), removing the words 

“authorized representative” and adding in their place the words 

“authorized account representative”;
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g. In paragraph (c)(5)(v), removing the word “designated” 

two times and adding in its place the words “authorized 

account”; and

h. In paragraph (e), removing the text “paragraphs 

(c)(2)(ii) and (c)(5)” and adding in its place the text 

“paragraphs (c)(2)(ii) and (5)”.

The additions read as follows:

§ 97.420 Establishment of compliance accounts, assurance 

accounts, and general accounts.

* * * * *

(c) * * *

(1) * * *

(iv) An application for a general account under paragraph 

(c)(1) of this section that complies with the provisions of such 

paragraph except that it contains the acronym “TR” in place of 

the acronym “CSAPR” in the required certification statement will 

be considered a complete application for a general account under 

such paragraph, and the certification statement included in such 

application for a general account will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.

(2) * * *

(iv) A certification statement submitted in accordance with 

paragraph (c)(2)(ii) of this section that contains the acronym 
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“TR” will be interpreted as if the acronym “CSAPR” appeared in 

place of the acronym “TR”.

* * * * *

■ 69. Section 97.421 is amended by:

a. Revising the section heading;

b. In paragraphs (c), (d), and (e), removing the word 

“period” and adding in its place the word “periods”; 

c. In paragraph (i), after the text “through (12)” removing 

the comma;

d. Revising paragraph (j); and 

e. Redesignating paragraph (k) as paragraph (l) and adding 

a new paragraph (k). 

The revisions and additions read as follows:

§ 97.421 Recordation of CSAPR NOX Annual allowance allocations 

and auction results.

* * * * *

(j) By February 15, 2016 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR NOX

Annual source’s compliance account the CSAPR NOX Annual 

allowances allocated to the CSAPR NOX Annual units at the source 

in accordance with § 97.412(b)(9) through (12) for the control 

period in the year before the year of the applicable recordation 

deadline under this paragraph.
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(k) By the date 15 days after the date on which any 

allocation or auction results, other than an allocation or 

auction results described in paragraphs (a) through (j) of this 

section, of CSAPR NOX Annual allowances to a recipient is made by 

or are submitted to the Administrator in accordance with 

§ 97.411 or § 97.412 or with a SIP revision approved under 

§ 52.38(a)(4) or (5) of this chapter, the Administrator will 

record such allocation or auction results in the appropriate 

Allowance Management System account.

* * * * *

§ 97.422 Submission of CSAPR NOX Annual allowance transfers.

■ 70. Section 97.422 is amended by revising the section heading 

to read as set forth above.

§ 97.423 Recordation of CSAPR NOX Annual allowance transfers.

■ 71. Section 97.423 is amended by: 

a. Revising the section heading to read as set forth above; 

and

b. In paragraph (b), after the word “allocated” adding the 

words “or auctioned”.

■ 72. Section 97.424 is amended by: 

a. Revising the section heading; 

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;
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c. Revising paragraphs (c)(2)(i) and (c)(2)(ii); and

d. In paragraph (d), after the word “allocated” adding the 

words “or auctioned”.

The revisions read as follows:

§ 97.424 Compliance with CSAPR NOX Annual emissions limitation.

* * * * *

(c) * * *

(2) * * *

(i) Any CSAPR NOX Annual allowances that were recorded in 

the compliance account pursuant to § 97.421 and not transferred 

out of the compliance account, in the order of recordation; and 

then

(ii) Any other CSAPR NOX Annual allowances that were 

transferred to and recorded in the compliance account pursuant 

to this subpart, in the order of recordation.

* * * * *

§ 97.425 Compliance with CSAPR NOX Annual assurance provisions.

■ 73. Section 97.425 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;
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c. In paragraph (b)(2)(iii) introductory text, removing the 

text “paragraph (b)(1)(i)” and adding in its place the text 

“paragraph (b)(1)(ii)”;

d. In paragraph (b)(2)(iii)(B), after the words 

“availability of” adding the words “the calculations 

incorporating”;

e. In paragraph (b)(4)(i), after the words “established 

for” removing the word “the”; and 

f. In paragraph (b)(6)(iii)(B), after the word 

“appropriate” removing the word “at”.

§ 97.426 [Amended]

■ 74. Section 97.426, paragraph (b) is amended by removing the 

text “97.427, or 97.428” and adding in its place the text 

“§ 97.427, or § 97.428”.

§ 97.428 [Amended]

■ 75. Section 97.428, paragraph (b) is amended by removing the 

text “paragraph (a)(1)” and adding in its place the text 

“paragraph (a)”.

■ 76. Section 97.430 is amended by:

a. Revising paragraph (b) introductory text and paragraphs 

(b)(1) and (2);
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b. In paragraph (b)(3) introductory text, removing the text 

“§§ 75.4(e)(1) through (e)(4)” and adding in its place the text 

“§ 75.4(e)(1) through (4)”; and

c. In paragraph (b)(3)(iii), after the text “§ 75.66” 

adding the words “of this chapter”.

The revisions read as follows:

§ 97.430 General monitoring, recordkeeping, and reporting 

requirements.

* * * * *

(b) Compliance deadlines. Except as provided in paragraph 

(e) of this section, the owner or operator of a CSAPR NOX Annual 

unit shall meet the monitoring system certification and other 

requirements of paragraphs (a)(1) and (2) of this section on or 

before the later of the following dates and shall record, 

report, and quality-assure the data from the monitoring systems 

under paragraph (a)(1) of this section on and after the later of 

the following dates:

(1) January 1, 2015; or

(2) 180 calendar days after the date on which the unit 

commences commercial operation.

* * * * *

§ 97.431 [Amended]

■ 77. Section 97.431 is amended by:
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a. Italicizing the headings of paragraphs (d)(1) through 

(3), (d)(3)(i) through (iv), (d)(3)(iv)(A) through (D), and 

(d)(3)(v); and

b. In paragraph (d)(3) introductory text, removing the text 

“§§” and adding in its place the text “§”.

■ 78. Section 97.434 is amended by:

a. In paragraph (b), after the words “comply with” adding 

the word “the”; and

b. Revising paragraphs (d)(1) and (3). 

The revisions read as follows:

§ 97.434 Recordkeeping and reporting.

* * * * *

(d) * * *

(1) The designated representative shall report the NOX mass 

emissions data and heat input data for a CSAPR NOX Annual unit, 

in an electronic quarterly report in a format prescribed by the 

Administrator, for each calendar quarter beginning with the 

later of:

(i) The calendar quarter covering January 1, 2015 through 

March 31, 2015; or

(ii) The calendar quarter corresponding to the earlier of 

the date of provisional certification or the applicable deadline 

for initial certification under § 97.430(b).
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* * * * *

(3) For CSAPR NOX Annual units that are also subject to the 

Acid Rain Program, CSAPR NOX Ozone Season Group 1 Trading 

Program, CSAPR NOX Ozone Season Group 2 Trading Program, CSAPR 

SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 Trading 

Program, quarterly reports shall include the applicable data and 

information required by subparts F through H of part 75 of this 

chapter as applicable, in addition to the NOX mass emission data, 

heat input data, and other information required by this subpart.

* * * * *

§ 97.435 [Amended]

■ 79. Section 97.435 is amended by redesignating paragraphs 

(b)(i) through (v) as paragraphs (b)(1) through (5).

Subpart BBBBB—CSAPR NOX Ozone Season Group 1 Trading Program

■ 80. The heading of subpart BBBBB of part 97 is revised to read 

as set forth above.

§ 97.501 [Amended]

■ 81. Section 97.501 is amended by removing the text “Transport 

Rule (TR) NOX Ozone Season Trading Program” and adding in its 

place the text “Cross-State Air Pollution Rule (CSAPR) NOX Ozone 

Season Group 1 Trading Program”.

§§ 97.502 through 97.509 and 97.511 through 97.535 [Amended]
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■ 82. Sections 97.502 through 97.509 and 97.511 through 97.535 

are amended by:

a. Removing the text “TR” wherever it appears and adding in 

its place the text “CSAPR”; and

b. After the words “Ozone Season” wherever they appear 

adding the text “Group 1”.

■ 83. Section 97.502 is amended by:

a. Revising the section’s introductory text and the 

definitions “Allowable NOX emission rate” and “Allowance 

Management System”;

b. In the definition “Allowance Management System account”, 

removing the word “holding” and adding in its place the text 

“auction, holding”;

c. Revising the definition “Allowance transfer deadline”;

d. In the definition “Alternate designated representative”, 

after the words “the alternate designated representative” 

removing the comma;

e. Adding in alphabetical order the definition “Auction”;

f. In the definition “Cogeneration system”, removing the 

words “steam turbine”;

g. In the definition “Commence commercial operation”, 

paragraph (2) introductory text, after the words “defined in” 

adding the word “the”;
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h. In the definition “Common designated representative’s 

share”, paragraph (2), removing the words “and of the total” and 

adding in their place the words “and the total”;

i. Revising the newly amended definition “CSAPR NOX Ozone 

Season Group 1 Trading Program”;

j. Adding in alphabetical order the definitions “CSAPR NOX

Ozone Season Group 2 allowance” and “CSAPR NOX Ozone Season Group 

2 Trading Program”;

k. Revising the newly amended definitions “CSAPR SO2 Group 1 

Trading Program” and “CSAPR SO2 Group 2 Trading Program”;

l. In the definition “Designated representative”, after the 

words “the designated representative” removing the comma;

m. In the definition “Fossil fuel”, paragraph (2), removing 

the text “§§” and adding in its place the text “§”;

n. Removing the definition “Gross electrical output”;

o. Revising the definitions “Heat input”, “Heat input 

rate”, and “Heat rate”;

p. In the definition title “Maximum design heat input”, 

after the words “heat input” adding the word “rate”;

q. Revising the definition “Potential electrical output 

capacity”;

r. In the definition “Sequential use of energy”, paragraph 

(2), after the word “from” adding the word “a”; and
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s. Revising the definition “State”.

The revisions and additions read as follows:

§ 97.502 Definitions.

The terms used in this subpart shall have the meanings set 

forth in this section as follows, provided that any term that 

includes the acronym “CSAPR” shall be considered synonymous with 

a term that is used in a SIP revision approved by the 

Administrator under § 52.38 or § 52.39 of this chapter and that 

is substantively identical except for the inclusion of the 

acronym “TR” in place of the acronym “CSAPR”:

* * * * *

Allowable NOX emission rate means, for a unit, the most 

stringent State or federal NOX emission rate limit (in lb/MWh or, 

if in lb/mmBtu, converted to lb/MWh by multiplying it by the 

unit's heat rate in mmBtu/MWh) that is applicable to the unit 

and covers the longest averaging period not exceeding one year.

Allowance Management System means the system by which the 

Administrator records allocations, auctions, transfers, and 

deductions of CSAPR NOX Ozone Season Group 1 allowances under the 

CSAPR NOX Ozone Season Group 1 Trading Program. Such allowances 

are allocated, auctioned, recorded, held, transferred, or 

deducted only as whole allowances.

* * * * *
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Allowance transfer deadline means, for a control period in 

2015 or 2016, midnight of December 1, 2015 or December 1, 2016, 

respectively, or for a control period in any other given year, 

midnight of March 1 (if it is a business day), or midnight of 

the first business day thereafter (if March 1 is not a business 

day), immediately after such control period and is the deadline 

by which a CSAPR NOX Ozone Season Group 1 allowance transfer must 

be submitted for recordation in a CSAPR NOX Ozone Season Group 1 

source’s compliance account in order to be available for use in 

complying with the source’s CSAPR NOX Ozone Season Group 1 

emissions limitation for such control period in accordance with 

§§ 97.506 and 97.524.

* * * * *

Auction means, with regard to CSAPR NOX Ozone Season Group 1 

allowances, the sale to any person by a State or permitting 

authority, in accordance with a SIP revision submitted by the 

State and approved by the Administrator under § 52.38(b)(4) or 

(5) of this chapter, of such CSAPR NOX Ozone Season Group 1 

allowances to be initially recorded in an Allowance Management 

System account.

* * * * *

CSAPR NOX Ozone Season Group 1 Trading Program means a 

multi-state NOX air pollution control and emission reduction 
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program established in accordance with this subpart and 

§ 52.38(b)(1), (2)(i) and (ii), (3) through (5), and (10) 

through (12) of this chapter (including such a program that is 

revised in a SIP revision approved by the Administrator under 

§ 52.38(b)(3) or (4) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(5) 

of this chapter), as a means of mitigating interstate transport 

of ozone and NOX.

* * * * *

CSAPR NOX Ozone Season Group 2 allowance means a limited 

authorization issued and allocated or auctioned by the 

Administrator under subpart EEEEE of this part or § 97.526(c), 

or by a State or permitting authority under a SIP revision 

approved by the Administrator under § 52.38(b)(6), (7), (8), or 

(9) of this chapter, to emit one ton of NOX during a control 

period of the specified calendar year for which the 

authorization is allocated or auctioned or of any calendar year 

thereafter under the CSAPR NOX Ozone Season Group 2 Trading 

Program.

CSAPR NOX Ozone Season Group 2 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart EEEEE of this 

part and § 52.38(b)(1), (2)(i) and (iii), (6) through (11), and 
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(13) of this chapter (including such a program that is revised 

in a SIP revision approved by the Administrator under 

§ 52.38(b)(7) or (8) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(6) 

or (9) of this chapter), as a means of mitigating interstate 

transport of ozone and NOX.

CSAPR SO2 Group 1 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart CCCCC of this part and § 52.39(a), 

(b), (d) through (f), and (j) through (l) of this chapter 

(including such a program that is revised in a SIP revision 

approved by the Administrator under § 52.39(d) or (e) of this 

chapter or that is established in a SIP revision approved by the 

Administrator under § 52.39(f) of this chapter), as a means of 

mitigating interstate transport of fine particulates and SO2.

CSAPR SO2 Group 2 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart DDDDD of this part and § 52.39(a), 

(c), (g) through (k), and (m) of this chapter (including such a 

program that is revised in a SIP revision approved by the 

Administrator under § 52.39(g) or (h) of this chapter or that is 

established in a SIP revision approved by the Administrator 
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under § 52.39(i) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.

* * * * *

Heat input means, for a unit for a specified period of unit 

operating time, the product (in mmBtu) of the gross calorific 

value of the fuel (in mmBtu/lb) fed into the unit multiplied by 

the fuel feed rate (in lb of fuel/time) and unit operating time, 

as measured, recorded, and reported to the Administrator by the 

designated representative and as modified by the Administrator 

in accordance with this subpart and excluding the heat derived 

from preheated combustion air, recirculated flue gases, or 

exhaust.

Heat input rate means, for a unit, the quotient (in 

mmBtu/hr) of the amount of heat input for a specified period of 

unit operating time (in mmBtu) divided by unit operating time 

(in hr) or, for a unit and a specific fuel, the amount of heat 

input attributed to the fuel (in mmBtu) divided by the unit 

operating time (in hr) during which the unit combusts the fuel.

Heat rate means, for a unit, the quotient (in mmBtu/unit of 

load) of the unit's maximum design heat input rate (in Btu/hr) 

divided by the product of 1,000,000 Btu/mmBtu and the unit's 

maximum hourly load.

* * * * *
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Potential electrical output capacity means, for a unit (in 

MWh/yr), 33 percent of the unit's maximum design heat input rate 

(in Btu/hr), divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, 

and multiplied by 8,760 hr/yr.

* * * * *

State means one of the States that is subject to the CSAPR 

NOX Ozone Season Group 1 Trading Program pursuant to 

§ 52.38(b)(1), (2)(i) and (ii), (3) through (5), and (10) 

through (12) of this chapter.

* * * * *

§ 97.503 [Amended]

■ 84. Section 97.503 is amended by:

a. Adding in alphabetical order the list entry “CSAPR—

Cross-State Air Pollution Rule”;

b. Removing the list entry “kW—kilowatt electrical”;

c. Removing the list entry “kWh—kilowatt hour” and adding 

in its place the entry “kWh—kilowatt-hour”;

d. Removing the list entry “MWh—megawatt hour” and adding 

in its place the entry “MWh—megawatt-hour”; and

e. Adding in alphabetical order the list entries “SIP—State 

implementation plan” and “TR—Transport Rule”.

§ 97.504 [Amended]

■ 85. Section 97.504 is amended by:
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a. In paragraph (b)(1)(i)(B), removing the word “electric” 

and adding in its place the word “electrical”;

b. In paragraph (b)(2)(ii), removing the text “paragraph 

(b)(1)(i)” and adding in its place the text “paragraph 

(b)(2)(i)”, and removing the text “NOX" and adding in its place 

the text “NOX”; and 

c. Italicizing the headings of paragraphs (c)(1) and (2).

§ 97.505 [Amended]

■ 86. Section 97.505, paragraph (b) is amended by italicizing 

the heading.

§ 97.506 [Amended]

■ 87. Section 97.506 is amended by:

a. Italicizing the headings of paragraphs (c), (c)(1) and 

(2), and (c)(4) through (7);

b. In paragraph (c)(2)(ii), after the words “immediately 

after” adding the words “the year of”;

c. In paragraph (c)(3)(i), after the paragraph designator 

“(i)” adding a space;

d. In paragraph (c)(4) heading, after the words “Vintage 

of” adding the text “CSAPR NOX Ozone Season Group 1”; and

e. In paragraphs (c)(4)(i) and (ii), after the word 

“allocated” adding the words “or auctioned”. 

■ 88. Section 97.510 is amended by:
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a. Revising the section heading;

b. Revising paragraph (a) introductory text;

c. In paragraphs (a)(1) through (25):

i. Removing the words “ozone season trading” and adding in 

their place the text “Ozone Season Group 1 trading”;

ii. Removing the text “NOX ozone season new” and adding in 

its place the word “new”; and 

iii. Removing the text “NOX ozone season Indian” and adding 

in its place the word “Indian”;

d. Adding and reserving paragraphs (a)(2)(vi), (a)(13)(vi), 

(a)(17)(vi), and (a)(18)(vi); 

e. Revising paragraph (b) introductory text;

f. In paragraphs (b)(1) through (25), removing the text “NOX

ozone season”; and

g. Revising paragraph (c). 

The revisions read as follows:

§ 97.510 State NOX Ozone Season Group 1 trading budgets, new unit 

set-asides, Indian country new unit set-asides, and variability 

limits.

(a) The State NOX Ozone Season Group 1 trading budgets, new 

unit set-asides, and Indian country new unit set-asides for 

allocations of CSAPR NOX Ozone Season Group 1 allowances for the 

control periods in 2015 and thereafter are as follows:
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* * * * *

(b) The States’ variability limits for the State NOX Ozone 

Season Group 1 trading budgets for the control periods in 2017

and thereafter are as follows:

* * * * *

(c) Each State NOX Ozone Season Group 1 trading budget in 

this section includes any tons in a new unit set-aside or Indian 

country new unit set-aside but does not include any tons in a 

variability limit.

■ 89. Section 97.511 is amended by:

a. Revising the section heading;

b. Italicizing the headings of paragraphs (b)(1) and (2); 

c. Revising paragraph (b)(1)(iii);

d. In paragraph (b)(1)(iv)(B), removing the words “the 

each” and adding in their place the word “each”, and revising 

the second sentence; 

e. Revising paragraph (b)(2)(iii);

f. In paragraph (b)(2)(iv)(B), removing the words “the 

each” and adding in their place the word “each”, revising the 

second sentence, and after the newly revised second sentence 

adding a paragraph break before the paragraph designator “(v)” 

for the following paragraph (b)(2)(v);
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g. In paragraph (c)(1)(ii), removing the text 

“§ 52.38(b)(3), (4), or (5)” and adding in its place the text 

“§ 52.38(b)(4) or (5)”, and removing the text “January 1” and 

adding in its place the text “May 1”;

h. In paragraph (c)(5)(i)(B), after the text “§ 52.38(b)(4) 

or (5)” adding the words “of this chapter”, and removing the 

word “Annual” and adding in its place the text “Ozone Season 

Group 1”;

i. In paragraph (c)(5)(ii) introductory text, removing the 

words “this paragraph” and adding in their place the words “this 

section”;

j. In paragraph (c)(5)(ii)(B), after the text

“§ 52.38(b)(4) or (5)” adding the words “of this chapter”; and

k. In paragraph (c)(5)(iii), removing the words “this 

paragraph” and adding in their place the words “this section”.

The revisions read as follows:

§ 97.511 Timing requirements for CSAPR NOX Ozone Season Group 1 

allowance allocations.

* * * * *

(b) * * *

(1) * * *

(iii)(A) If the new unit set-aside for the control period 

in 2015 or 2016 contains any CSAPR NOX Ozone Season Group 1 
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allowances that have not been allocated in the applicable notice 

of data availability required in paragraph (b)(1)(ii) of this 

section, the Administrator will promulgate, by September 15 

immediately after such notice, a notice of data availability 

that identifies any CSAPR NOX Ozone Season Group 1 units that 

commenced commercial operation during the period starting May 1 

of the year before the year of such control period and ending 

August 31 of the year of such control period.

(B) If the new unit set-aside for the control period in 

2017 or any subsequent year contains any CSAPR NOX Ozone Season 

Group 1 allowances that have not been allocated in the 

applicable notice of data availability required in paragraph 

(b)(1)(ii) of this section, the Administrator will promulgate, 

by December 15 immediately after such notice, a notice of data 

availability that identifies any CSAPR NOX Ozone Season Group 1 

units that commenced commercial operation during the period 

starting January 1 of the year before the year of such control 

period and ending November 30 of the year of such control 

period.

(iv) * * *

(B) * * * By November 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iii)(A) of this section, or by February 15 
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immediately after the promulgation of each notice of data 

availability required in paragraph (b)(1)(iii)(B) of this 

section, the Administrator will promulgate a notice of data 

availability of any adjustments of the identification of CSAPR 

NOX Ozone Season Group 1 units that the Administrator determines 

to be necessary, the reasons for accepting or rejecting any 

objections submitted in accordance with paragraph (b)(1)(iv)(A) 

of this section, and the results of such calculations.

* * * * *

(2) * * *

(iii)(A) If the Indian country new unit set-aside for the 

control period in 2015 or 2016 contains any CSAPR NOX Ozone 

Season Group 1 allowances that have not been allocated in the 

applicable notice of data availability required in paragraph 

(b)(2)(ii) of this section, the Administrator will promulgate, 

by September 15 immediately after such notice, a notice of data 

availability that identifies any CSAPR NOX Ozone Season Group 1 

units that commenced commercial operation during the period 

starting May 1 of the year before the year of such control 

period and ending August 31 of the year of such control period.

(B) If the Indian country new unit set-aside for the 

control period in 2017 or any subsequent year contains any CSAPR 

NOX Ozone Season Group 1 allowances that have not been allocated 
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in the applicable notice of data availability required in 

paragraph (b)(2)(ii) of this section, the Administrator will 

promulgate, by December 15 immediately after such notice, a 

notice of data availability that identifies any CSAPR NOX Ozone 

Season Group 1 units that commenced commercial operation during 

the period starting January 1 of the year before the year of 

such control period and ending November 30 of the year of such 

control period.

(iv) * * *

(B) * * * By November 15 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(A) of this section, or by February 15 

immediately after the promulgation of each notice of data 

availability required in paragraph (b)(2)(iii)(B) of this 

section, the Administrator will promulgate a notice of data 

availability of any adjustments of the identification of CSAPR 

NOX Ozone Season Group 1 units that the Administrator determines 

to be necessary, the reasons for accepting or rejecting any 

objections submitted in accordance with paragraph (b)(2)(iv)(A) 

of this section, and the results of such calculations.

* * * * *

■ 90. Section 97.512 is amended by:

a. Revising the section heading;
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b. In paragraph (a)(2), removing the text “§§” and adding 

in its place the text “§”;

c. In paragraph (a)(4)(i), removing the text “paragraph 

(a)(1)(i) through (iii)” and adding in its place the text 

“paragraphs (a)(1)(i) through (iii)”;

d. In paragraph (a)(4)(ii), after the text “paragraph 

(a)(4)(i)” adding the words “of this section”;

e. Revising paragraph (a)(9)(i);

f. In paragraph (b)(4)(ii), after the text “paragraph 

(b)(4)(i)” adding the words “of this section”;

g. Revising paragraph (b)(9)(i); and

h. In paragraph (b)(10)(ii), after the text “§ 52.38(b)(4) 

or (5)” adding the words “of this chapter”.

The revisions read as follows:

§ 97.512 CSAPR NOX Ozone Season Group 1 allowance allocations to 

new units.

(a) * * *

(9) * * *

(i)(A) For the control period in 2015 or 2016, the 

Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting May 1 of the year before 

the year of such control period and ending August 31 of the year 
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of such control period, the positive difference (if any) between 

the unit’s emissions during such control period and the amount 

of CSAPR NOX Ozone Season Group 1 allowances referenced in the 

notice of data availability required under § 97.511(b)(1)(ii) 

for the unit for such control period;

(B) For the control period in 2017 or any subsequent year, 

the Administrator will determine, for each unit described in 

paragraph (a)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

the year of such control period, the positive difference (if 

any) between the unit’s emissions during such control period and 

the amount of CSAPR NOX Ozone Season Group 1 allowances 

referenced in the notice of data availability required under 

§ 97.511(b)(1)(ii) for the unit for such control period;

* * * * *

(b) * * *

(9) * * *

(i)(A) For the control period in 2015 or 2016, the 

Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting May 1 of the year before 

the year of such control period and ending August 31 of the year 
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of such control period, the positive difference (if any) between 

the unit’s emissions during such control period and the amount 

of CSAPR NOX Ozone Season Group 1 allowances referenced in the 

notice of data availability required under § 97.511(b)(2)(ii) 

for the unit for such control period;

(B) For the control period in 2017 or any subsequent year, 

the Administrator will determine, for each unit described in 

paragraph (b)(1) of this section that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

the year of such control period, the positive difference (if 

any) between the unit’s emissions during such control period and 

the amount of CSAPR NOX Ozone Season Group 1 allowances 

referenced in the notice of data availability required under 

§ 97.511(b)(2)(ii) for the unit for such control period;

* * * * *

■ 91. Section 97.516 is amended by:

a. In paragraph (a)(1), removing the word “Country” and 

adding in its place the word “country”; and

b. Adding paragraph (c).

The additions read as follows:

§ 97.516 Certificate of representation.

* * * * *
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(c) A certificate of representation under this section that 

complies with the provisions of paragraph (a) of this section 

except that it contains the phrase “TR NOX Ozone Season” in place 

of the phrase “CSAPR NOX Ozone Season Group 1” in the required 

certification statements will be considered a complete 

certificate of representation under this section, and the 

certification statements included in such certificate of 

representation will be interpreted for purposes of this subpart 

as if the phrase “CSAPR NOX Ozone Season Group 1” appeared in 

place of the phrase “TR NOX Ozone Season”.

■ 92. Section 97.520 is amended by:

a. Italicizing the headings of paragraphs (c)(1) through 

(6);

b. Adding paragraph (c)(1)(iv);

c. In paragraph (c)(2)(i) introductory text, removing the 

text “paragraph (b)(1)” and adding in its place the text 

“paragraph (c)(1)”;

d. Adding paragraph (c)(2)(iv);

e. In paragraph (c)(4)(i), removing the text “paragraph 

(b)(1)” and adding in its place the text “paragraph (c)(1)”;

f. In paragraph (c)(5)(iii)(D), removing the words 

“authorized representative” and adding in their place the words 

“authorized account representative”;
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g. In paragraph (c)(5)(v), removing the word “designated” 

two times and adding in its place the words “authorized 

account”; and

h. In paragraph (e), removing the text “paragraphs 

(c)(2)(ii) and (c)(5)” and adding in its place the text 

“paragraphs (c)(2)(ii) and (5)”.

The additions read as follows:

§ 97.520 Establishment of compliance accounts, assurance 

accounts, and general accounts.

* * * * *

(c) * * *

(1) * * *

(iv) An application for a general account under paragraph 

(c)(1) of this section that complies with the provisions of such 

paragraph except that it contains the phrase “TR NOX Ozone 

Season” in place of the phrase “CSAPR NOX Ozone Season Group 1” 

in the required certification statement will be considered a 

complete application for a general account under such paragraph, 

and the certification statement included in such application for 

a general account will be interpreted for purposes of this 

subpart as if the phrase “CSAPR NOX Ozone Season Group 1” 

appeared in place of the phrase “TR NOX Ozone Season”.

(2) * * *
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(iv) A certification statement submitted in accordance with 

paragraph (c)(2)(ii) of this section that contains the phrase 

“TR NOX Ozone Season” will be interpreted for purposes of this 

subpart as if the phrase “CSAPR NOX Ozone Season Group 1” 

appeared in place of the phrase “TR NOX Ozone Season”. 

* * * * *

■ 93. Section 97.521 is amended by:

a. Revising the section heading;

b. Revising paragraph (c);

c. In paragraphs (d) and (e), removing the word “period” 

and adding in its place the word “periods”;

d. Revising paragraphs (i) and (j); and 

e. Redesignating paragraph (k) as paragraph (l) and adding 

a new paragraph (k). 

The revisions and additions read as follows:

§ 97.521 Recordation of CSAPR NOX Ozone Season Group 1 allowance 

allocations and auction results. 

* * * * *

(c) By January 1, 2017, the Administrator will record in 

each CSAPR NOX Ozone Season Group 1 source’s compliance account 

the CSAPR NOX Ozone Season Group 1 allowances allocated to the 

CSAPR NOX Ozone Season Group 1 units at the source, or in each 

appropriate Allowance Management System account the CSAPR NOX
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Ozone Season Group 1 allowances auctioned to CSAPR NOX Ozone 

Season Group 1 units, in accordance with § 97.511(a), or with a 

SIP revision approved under § 52.38(b)(4) or (5) of this 

chapter, for the control periods in 2017 and 2018. 

* * * * *

(i)(1) By November 15, 2015 and November 15, 2016, the 

Administrator will record in each CSAPR NOX Ozone Season Group 1 

source’s compliance account the CSAPR NOX Ozone Season Group 1 

allowances allocated to the CSAPR NOX Ozone Season Group 1 units 

at the source in accordance with § 97.512(a)(9) through (12) for 

the control period in the year of the applicable recordation 

deadline under this paragraph.

(2) By February 15, 2018 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR NOX Ozone 

Season Group 1 source’s compliance account the CSAPR NOX Ozone 

Season Group 1 allowances allocated to the CSAPR NOX Ozone Season 

Group 1 units at the source in accordance with § 97.512(a)(9) 

through (12) for the control period in the year before the year 

of the applicable recordation deadline under this paragraph.

(j)(1) By November 15, 2015 and November 15, 2016, the 

Administrator will record in each CSAPR NOX Ozone Season Group 1 

source’s compliance account the CSAPR NOX Ozone Season Group 1 

allowances allocated to the CSAPR NOX Ozone Season Group 1 units 
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at the source in accordance with § 97.512(b)(9) through (12) for 

the control period in the year of the applicable recordation 

deadline under this paragraph.

(2) By February 15, 2018 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR NOX Ozone 

Season Group 1 source’s compliance account the CSAPR NOX Ozone 

Season Group 1 allowances allocated to the CSAPR NOX Ozone Season 

Group 1 units at the source in accordance with § 97.512(b)(9) 

through (12) for the control period in the year before the year 

of the applicable recordation deadline under this paragraph.

(k) By the date 15 days after the date on which any 

allocation or auction results, other than an allocation or 

auction results described in paragraphs (a) through (j) of this 

section, of CSAPR NOX Ozone Season Group 1 allowances to a 

recipient is made by or are submitted to the Administrator in 

accordance with § 97.511 or § 97.512 or with a SIP revision 

approved under § 52.38(b)(4) or (5) of this chapter, the 

Administrator will record such allocation or auction results in 

the appropriate Allowance Management System account.

* * * * *

§ 97.522 Submission of CSAPR NOX Ozone Season Group 1 allowance 

transfers.
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■ 94. Section 97.522 is amended by revising the section heading 

to read as set forth above.

§ 97.523 Recordation of CSAPR NOX Ozone Season Group 1 allowance 

transfers.

■ 95. Section 97.523 is amended by: 

a. Revising the section heading to read as set forth above; 

and

b. In paragraph (b), after the word “allocated” adding the 

words “or auctioned”.

■ 96. Section 97.524 is amended by: 

a. Revising the section heading; 

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. Revising paragraphs (c)(2)(i) and (c)(2)(ii); and

d. In paragraph (d), after the word “allocated” adding the 

words “or auctioned”. 

The revisions read as follows:

§ 97.524 Compliance with CSAPR NOX Ozone Season Group 1 emissions 

limitation.

* * * * *

(c) * * *

(2) * * *
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(i) Any CSAPR NOX Ozone Season Group 1 allowances that were 

recorded in the compliance account pursuant to § 97.521 and not 

transferred out of the compliance account, in the order of 

recordation; and then

(ii) Any other CSAPR NOX Ozone Season Group 1 allowances 

that were transferred to and recorded in the compliance account 

pursuant to this subpart, in the order of recordation.

* * * * *

§ 97.525 Compliance with CSAPR NOX Ozone Season Group 1 assurance 

provisions.

■ 97. Section 97.525 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. In paragraph (b)(2)(iii) introductory text, removing the 

text “paragraph (b)(1)(i)” and adding in its place the text 

“paragraph (b)(1)(ii)”;

d. In paragraph (b)(2)(iii)(B), after the words 

“availability of” adding the words “the calculations 

incorporating”;

e. In paragraph (b)(4)(i), after the words “established 

for” removing the word “the”; and 
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f. In paragraph (b)(6)(iii)(B), after the word 

“appropriate” removing the word “at”.

■ 98. Section 97.526 is amended by:

a. In paragraph (b), removing the text “§ 97.528” and 

adding in its place the text “§ 97.528 or removed under 

paragraph (c) of this section”; and

b. Adding paragraph (c).

The additions read as follows:

§ 97.526 Banking.

* * * * *

(c) Replacement of CSAPR NOX Ozone Season Group 1 allowances 

with CSAPR NOX Ozone Season Group 2 allowances. Notwithstanding 

any other provision of this subpart or any provision of a SIP 

revision approved under § 52.38(b)(4) or (5) of this chapter, 

the Administrator will remove CSAPR NOX Ozone Season Group 1 

allowances from compliance accounts and general accounts and

allocate in their place amounts of CSAPR NOX Ozone Season Group 2 

allowances as provided in paragraphs (c)(1) through (5) of this 

section and will record CSAPR NOX Ozone Season Group 2 allowances 

in lieu of initially recording CSAPR NOX Ozone Season Group 1 

allowances as provided in paragraph (c)(6) of this section.

(1) As soon as practicable after the completion of 

deductions under § 97.524 for the control period in 2016, but 
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not later than March 1, 2018, the Administrator will temporarily 

suspend acceptance of CSAPR NOX Ozone Season Group 1 allowance 

transfers submitted under § 97.522 and, before resuming 

acceptance of such transfers, will take the following actions 

with regard to every general account and every compliance 

account except a compliance account for a CSAPR NOX Ozone Season 

Group 1 source located in a State listed in § 52.38(b)(2)(i) of 

this chapter or Indian country within the borders of such a 

State:

(i) The Administrator will remove all CSAPR NOX Ozone Season 

Group 1 allowances allocated for the control periods in 2015 and 

2016 from each such account.

(ii) The Administrator will determine a conversion factor 

equal to the greater of 1.0000 or the quotient, expressed to 

four decimal places, of the sum of all CSAPR NOX Ozone Season 

Group 1 allowances removed from all such accounts under 

paragraph (c)(1)(i) of this section divided by the product of 

1.5 times the sum of the variability limits for the control 

period in 2017 set forth in § 97.810(b) for all States except a 

State listed in § 52.38(b)(2)(i) of this chapter.

(iii) The Administrator will allocate to and record in each 

such account an amount of CSAPR NOX Ozone Season Group 2 

allowances for the control period in 2017, where such amount is 
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determined as the quotient of the number of CSAPR NOX Ozone 

Season Group 1 allowances removed from such account under 

paragraph (c)(1)(i) of this section divided by the conversion 

factor determined under paragraph (c)(1)(ii) of this section, 

rounded up to the nearest whole allowance, except as provided in 

paragraphs (c)(4) and (5) of this section.

(2) As soon as practicable after approval of a SIP revision 

under § 52.38(b)(6) of this chapter for a State listed in 

§ 52.38(b)(2)(i) of this chapter, but not later than the 

allowance transfer deadline defined under § 97.802 for the 

initial control period described with regard to such SIP 

revision in § 52.38(b)(6)(ii)(A) of this chapter, the 

Administrator will temporarily suspend acceptance of CSAPR NOX

Ozone Season Group 1 allowance transfers submitted under 

§ 97.522 and, before resuming acceptance of such transfers, will 

take the following actions with regard to every general account 

and every compliance account, unless otherwise provided in such 

approval of the SIP revision:

(i) The Administrator will remove from each such account 

all CSAPR NOX Ozone Season Group 1 allowances for such initial 

control period and each subsequent control period that were 

allocated to units located in such State under this subpart or 

that were allocated or auctioned to any entity under a SIP 
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revision for such State approved by the Administrator under 

§ 52.38(b)(4) or (5) of this chapter, whether such CSAPR NOX

Ozone Season Group 1 allowances were initially recorded in such 

account or were transferred to such account from another 

account.

(ii) The Administrator will determine a conversion factor 

equal to the greater of 1.0000 or the quotient, expressed to 

four decimal places, of the NOX Ozone Season Group 1 trading 

budget set forth for such State in § 97.510(a) divided by the NOX

Ozone Season Group 2 trading budget set forth for such State in 

§ 97.810(a).

(iii) The Administrator will allocate to and record in each 

such account an amount of CSAPR NOX Ozone Season Group 2 

allowances for each control period for which CSAPR NOX Ozone 

Season Group 1 allowances were removed from such account, where 

each such amount is determined as the quotient of the number of 

CSAPR NOX Ozone Season Group 1 allowances for such control period 

removed from such account under paragraph (c)(2)(i) of this 

section divided by the conversion factor determined under 

paragraph (c)(2)(ii) of this section, rounded up to the nearest 

whole allowance, except as provided in paragraphs (c)(4) and (5) 

of this section.
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(3) As soon as practicable after approval of a SIP revision 

under § 52.38(b)(6) of this chapter for a State listed in 

§ 52.38(b)(2)(i) of this chapter, but not before the completion 

of deductions under § 97.524 for the control period before the 

initial control period described with regard to such SIP 

revision in § 52.38(b)(6)(ii)(A) of this chapter and not later 

than the allowance transfer deadline defined under § 97.802 for 

such initial control period, the Administrator will temporarily 

suspend acceptance of CSAPR NOX Ozone Season Group 1 allowance 

transfers submitted under § 97.522 and, before resuming 

acceptance of such transfers, will take the following actions 

with regard to every compliance account for a CSAPR NOX Ozone 

Season Group 1 source located in such State, provided that if 

the provisions of § 52.38(b)(2)(i) of this chapter or a SIP 

revision approved under § 52.38(b)(5) of this chapter will no 

longer apply to any source in any State or Indian country within 

the borders of any State with regard to emissions occurring in 

such initial control period or any subsequent control period, 

the Administrator instead will permanently end acceptance of 

CSAPR NOX Ozone Season Group 1 allowance transfers submitted 

under § 97.522 and will take the following actions with regard 

to every general account and every compliance account: 
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(i) The Administrator will remove from each such account 

all CSAPR NOX Ozone Season Group 1 allowances allocated for all 

control periods before such initial control period.

(ii) The Administrator will determine a conversion factor 

equal to the greater of 1.0000 or the quotient, expressed to 

four decimal places, of the sum of all CSAPR NOX Ozone Season 

Group 1 allowances removed from all such accounts under 

paragraph (c)(3)(i) of this section divided by the product of 

1.5 times the variability limit for such initial control period 

set forth for such State in § 97.810(b).

(iii) The Administrator will allocate to and record in each 

such account an amount of CSAPR NOX Ozone Season Group 2 

allowances for such initial control period, where such amount is 

determined as the quotient of the number of CSAPR NOX Ozone 

Season Group 1 allowances removed from such account under 

paragraph (c)(3)(i) of this section divided by the conversion 

factor determined under paragraph (c)(3)(ii) of this section, 

rounded up to the nearest whole allowance, except as provided in 

paragraphs (c)(4) and (5) of this section.

(4) Where, pursuant to paragraph (c)(1)(i), (2)(i), or 

(3)(i) of this section, the Administrator removes CSAPR NOX Ozone 

Season Group 1 allowances from the compliance account for a 

source located in a State not listed in § 52.38(b)(2)(iii) of 
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this chapter or Indian country within the borders of such a 

State, the Administrator will not record CSAPR NOX Ozone Season 

Group 2 allowances in that account but instead will allocate to 

and record in another compliance account or general account 

CSAPR NOX Ozone Season Group 2 allowances for the control periods 

and in the amounts determined in accordance with paragraph 

(c)(1)(iii), (2)(iii), or (3)(iii) of this section, 

respectively, provided that the designated representative for 

such source identifies such other account in a submission to the 

Administrator and further provided that any compliance account 

identified in such a submission is for a source located in a 

State listed in § 52.38(b)(2)(iii) of this chapter or Indian 

country within the borders of such a State.

(5)(i) In computing any amounts of CSAPR NOX Ozone Season 

Group 2 allowances to be allocated to and recorded in general 

accounts under paragraph (c)(1)(iii), (2)(iii), or (3)(iii) of 

this section, the Administrator may group multiple general 

accounts whose ownership interests are held by the same or 

related persons or entities and treat the group of accounts as a 

single account for purposes of such computation. 

(ii) Following a computation for a group of general 

accounts in accordance with paragraph (c)(5)(i) of this section, 

the Administrator will allocate to and record in each individual 
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account in such group a proportional share of the quantity of 

CSAPR NOX Ozone Season Group 2 allowances computed for such 

group, basing such shares on the respective quantities of CSAPR 

NOX Ozone Season Group 1 allowances removed from such individual 

accounts under paragraph (c)(1)(i), (2)(i), or (3)(i) of this 

section, as applicable. 

(iii) In determining the proportional shares under 

paragraph (c)(5)(ii) of this section, the Administrator may 

employ any reasonable adjustment methodology to truncate or 

round each such share up or down to a whole number and to cause 

the total of such whole numbers to equal the amount of CSAPR NOX

Ozone Season Group 2 allowances computed for such group of 

accounts in accordance with paragraph (c)(5)(i) of this section, 

even where such adjustments cause the numbers of CSAPR NOX Ozone 

Season Group 2 allowances allocated to some individual accounts 

to equal zero. 

(6) After the Administrator has carried out the procedures 

set forth in paragraph (c)(1), (2), or (3) of this section, upon 

any determination that would otherwise result in the initial 

recordation of any CSAPR NOX Ozone Season Group 1 allowances in 

any account, where if such allowances had been recorded before 

the Administrator had carried out such procedures the allowances 

would have been removed from such account under paragraph 
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(c)(1)(i), (2)(i), or (3)(i) of this section, respectively, the 

Administrator will not record such CSAPR NOX Ozone Season Group 1 

allowances but instead will record CSAPR NOX Ozone Season Group 2 

allowances for the control periods and in the amounts determined 

in accordance with paragraph (c)(1)(iii), (2)(iii), or (3)(iii) 

of this section, respectively, in such account or another 

account identified in accordance with paragraph (c)(4) of this 

section.

(7) Notwithstanding any other provision of this subpart or 

subpart EEEEE of this part, CSAPR NOX Ozone Season Group 2 

allowances may be used to satisfy requirements to hold CSAPR NOX

Ozone Season Group 1 allowances under this subpart as follows, 

provided that nothing in this paragraph alters the time as of 

which any such allowance holding requirement must be met or 

limits any consequence of a failure to timely meet any such 

allowance holding requirement:

(i) After the Administrator has carried out the procedures 

set forth in paragraph (c)(1) of this section, the owner or 

operator of a CSAPR NOX Ozone Season Group 1 unit in a State 

listed in § 51.38(b)(2)(iii) of this chapter or Indian country 

within the borders of such a State may satisfy a requirement to 

hold a given number of CSAPR NOX Ozone Season Group 1 allowances 

for the control period in 2015 or 2016 by holding instead, in a 
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general account established for this sole purpose, an amount of 

CSAPR NOX Ozone Season Group 2 allowances for the control period 

in 2017, where such amount of CSAPR NOX Ozone Season Group 2 

allowances is computed as the quotient of such given number of 

CSAPR NOX Ozone Season Group 1 allowances divided by the 

conversion factor determined under paragraph (c)(1)(ii) of this 

section, rounded up to the nearest whole allowance.

(ii) After the Administrator has carried out the procedures 

set forth in paragraph (c)(3) of this section, the owner or 

operator of a CSAPR NOX Ozone Season Group 1 unit in a State 

listed in § 51.38(b)(2)(i) of this chapter may satisfy a 

requirement to hold a given number of CSAPR NOX Ozone Season 

Group 1 allowances for a control period before the initial 

control period described with regard to the State’s SIP revision 

in § 52.38(b)(6)(ii)(A) of this chapter by holding instead, in a 

general account established for this sole purpose, an amount of 

CSAPR NOX Ozone Season Group 2 allowances for such initial 

control period or any previous control period, where such amount 

of CSAPR NOX Ozone Season Group 2 allowances is computed as the 

quotient of such given number of CSAPR NOX Ozone Season Group 1 

allowances divided by the conversion factor determined under 

paragraph (c)(3)(ii) of this section, rounded up to the nearest 

whole allowance.
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§ 97.528 [Amended]

■ 99. Section 97.528, paragraph (b) is amended by removing the 

text “paragraph (a)(1)” and adding in its place the text 

“paragraph (a)”.

■ 100. Section 97.530 is amended by:

a. Revising paragraph (b) introductory text and paragraphs 

(b)(1) through (3); 

b. In paragraph (b)(4) introductory text, removing the text 

“§§ 75.4 (e)(1) through (e)(4)” and adding in its place the text 

“§ 75.4 (e)(1) through (4)”; and

c. In paragraph (b)(4)(iii), after the text “§ 75.66” 

adding the words “of this chapter”.

The revisions read as follows:

§ 97.530 General monitoring, recordkeeping, and reporting 

requirements.

* * * * *

(b) Compliance deadlines. Except as provided in paragraph 

(e) of this section, the owner or operator of a CSAPR NOX Ozone 

Season Group 1 unit shall meet the monitoring system 

certification and other requirements of paragraphs (a)(1) and 

(2) of this section on or before the latest of the following 

dates and shall record, report, and quality-assure the data from 
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the monitoring systems under paragraph (a)(1) of this section on 

and after the latest of the following dates:

(1) May 1, 2015; 

(2) 180 calendar days after the date on which the unit 

commences commercial operation; or

(3) Where data for the unit are reported on a control 

period basis under § 97.534(d)(1)(ii)(B), and where the 

compliance date under paragraph (b)(2) of this section is not in 

a month from May through September, May 1 immediately after the 

compliance date under paragraph (b)(2) of this section.

* * * * *

§ 97.531 [Amended]

■ 101. Section 97.531 is amended by:

a. Italicizing the headings of paragraphs (d)(1) through 

(3), (d)(3)(i) through (iv), (d)(3)(iv)(A) through (D), and 

(d)(3)(v);

b. In paragraph (d)(3) introductory text, removing the text 

“§§” and adding in its place the text “§”; and

c. Redesignating paragraphs (d)(3)(v)(A)(1) through (5) as 

paragraphs (d)(3)(v)(A)(1) through (5).

■ 102. Section 97.534 is amended by:

a. In paragraph (b), after the words “comply with” adding 

the word “the”; 
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b. Revising paragraphs (d)(1) and (2);

c. Redesignating paragraph (d)(6) as paragraph (d)(5)(ii); 

and

d. In paragraph (e)(3), removing the text “paragraph 

(d)(2)(ii)” and adding in its place the text “paragraph 

(d)(1)(ii)(B)”.

The revisions read as follows:

§ 97.534 Recordkeeping and reporting.

* * * * *

(d) * * *

(1)(i) If a CSAPR NOX Ozone Season Group 1 unit is subject 

to the Acid Rain Program or the CSAPR NOX Annual Trading Program 

or if the owner or operator of such unit chooses to report on an 

annual basis under this subpart, then the designated 

representative shall meet the requirements of subpart H of part 

75 of this chapter (concerning monitoring of NOX mass emissions) 

for such unit for the entire year and report the NOX mass 

emissions data and heat input data for such unit for the entire 

year.

(ii) If a CSAPR NOX Ozone Season Group 1 unit is not subject 

to the Acid Rain Program or the CSAPR NOX Annual Trading Program, 

then the designated representative shall either:
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(A) Meet the requirements of subpart H of part 75 of this 

chapter for such unit for the entire year and report the NOX mass 

emissions data and heat input data for such unit for the entire 

year in accordance with paragraph (d)(1)(i) of this section; or

(B) Meet the requirements of subpart H of part 75 of this 

chapter (including the requirements in § 75.74(c) of this 

chapter) for such unit for the control period and report the NOX

mass emissions data and heat input data (including the data 

described in § 75.74(c)(6) of this chapter) for such unit only 

for the control period of each year.

(2) The designated representative shall report the NOX mass 

emissions data and heat input data for a CSAPR NOX Ozone Season 

Group 1 unit, in an electronic quarterly report in a format 

prescribed by the Administrator, for each calendar quarter 

indicated under paragraph (d)(1) of this section beginning by 

the latest of:

(i) The calendar quarter covering May 1, 2015 through June 

30, 2015; 

(ii) The calendar quarter corresponding to the earlier of 

the date of provisional certification or the applicable deadline 

for initial certification under § 97.530(b); or

(iii) For a unit that reports on a control period basis 

under paragraph (d)(1)(ii)(B) of this section, if the calendar 
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quarter under paragraph (d)(2)(ii) of this section does not 

include a month from May through September, the calendar quarter 

covering May 1 through June 30 immediately after the calendar 

quarter under paragraph (d)(2)(ii) of this section.

* * * * *

§ 97.535 [Amended]

■ 103. Section 97.535 is amended by:

a. Redesignating paragraphs (b)(i) through (v) as 

paragraphs (b)(1) through (5); and 

b. In the newly redesignated paragraph (b)(4), removing the 

colon and adding in its place a semicolon.

Subpart CCCCC—CSAPR SO2 Group 1 Trading Program

■ 104. The heading of subpart CCCCC of part 97 is revised to 

read as set forth above.

§ 97.601 [Amended]

■ 105. Section 97.601 is amended by removing the text “Transport 

Rule (TR) SO2 Group 1 Trading Program” and adding in its place 

the text “Cross-State Air Pollution Rule (CSAPR) SO2 Group 1 

Trading Program”.

§§ 97.602 through 97.635 [Amended]

■ 106. Sections 97.602 through 97.635 are amended by removing 

the text “TR” wherever it appears and adding in its place the 

text “CSAPR”.
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■ 107. Section 97.602 is amended by:

a. Revising the section’s introductory text and the 

definitions “Allowable SO2 emission rate” and “Allowance 

Management System”;

b. In the definition “Allowance Management System account”, 

removing the word “holding” and adding in its place the text 

“auction, holding”;

c. Revising the definition “Alternate designated 

representative”;

d. Adding in alphabetical order the definition “Auction”;

e. In the definition “Cogeneration system”, removing the 

words “steam turbine”;

f. In the definition “Commence commercial operation”, 

paragraph (2) introductory text, after the words “defined in” 

adding the word “the”;

g. In the definition “Common designated representative’s 

share”, paragraph (2), removing the words “and of the total” and 

adding in their place the words “and the total”;

h. Removing the newly amended definition “CSAPR NOX Ozone 

Season Trading Program”;

i. Adding in alphabetical order the definitions “CSAPR NOX

Ozone Season Group 1 Trading Program” and “CSAPR NOX Ozone Season 

Group 2 Trading Program”;
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j. Revising the newly amended definition “CSAPR SO2 Group 1 

Trading Program” and the definition “Designated representative”;

k. In the definition “Fossil fuel”, paragraph (2), removing 

the text “§§” and adding in its place the text “§”;

l. Removing the definition “Gross electrical output”;

m. Revising the definitions “Heat input”, “Heat input 

rate”, and “Heat rate”;

n. In the definition title “Maximum design heat input”, 

after the words “heat input” adding the word “rate”;

o. Revising the definition “Potential electrical output 

capacity”;

p. In the definition “Sequential use of energy”, paragraph 

(2), after the word “from” adding the word “a”; and

q. Revising the definition “State”.

The revisions and additions read as follows:

§ 97.602 Definitions

The terms used in this subpart shall have the meanings set 

forth in this section as follows, provided that any term that 

includes the acronym “CSAPR” shall be considered synonymous with 

a term that is used in a SIP revision approved by the 

Administrator under § 52.38 or § 52.39 of this chapter and that 

is substantively identical except for the inclusion of the 

acronym “TR” in place of the acronym “CSAPR”:
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* * * * *

Allowable SO2 emission rate means, for a unit, the most 

stringent State or federal SO2 emission rate limit (in lb/MWh or, 

if in lb/mmBtu, converted to lb/MWh by multiplying it by the 

unit's heat rate in mmBtu/MWh) that is applicable to the unit 

and covers the longest averaging period not exceeding one year.

Allowance Management System means the system by which the 

Administrator records allocations, auctions, transfers, and 

deductions of CSAPR SO2 Group 1 allowances under the CSAPR SO2

Group 1 Trading Program. Such allowances are allocated, 

auctioned, recorded, held, transferred, or deducted only as 

whole allowances.

* * * * *

Alternate designated representative means, for a CSAPR SO2

Group 1 source and each CSAPR SO2 Group 1 unit at the source, the 

natural person who is authorized by the owners and operators of 

the source and all such units at the source, in accordance with 

this subpart, to act on behalf of the designated representative 

in matters pertaining to the CSAPR SO2 Group 1 Trading Program. 

If the CSAPR SO2 Group 1 source is also subject to the Acid Rain 

Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season 

Group 1 Trading Program, or CSAPR NOX Ozone Season Group 2 

Trading Program, then this natural person shall be the same 
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natural person as the alternate designated representative as 

defined in the respective program.

* * * * *

Auction means, with regard to CSAPR SO2 Group 1 allowances, 

the sale to any person by a State or permitting authority, in 

accordance with a SIP revision submitted by the State and 

approved by the Administrator under § 52.39(e) or (f) of this 

chapter, of such CSAPR SO2 Group 1 allowances to be initially 

recorded in an Allowance Management System account.

* * * * *

CSAPR NOX Ozone Season Group 1 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart BBBBB of this 

part and § 52.38(b)(1), (2)(i) and (ii), (3) through (5), and 

(10) through (12) of this chapter (including such a program that 

is revised in a SIP revision approved by the Administrator under 

§ 52.38(b)(3) or (4) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(5) 

of this chapter), as a means of mitigating interstate transport 

of ozone and NOX.

CSAPR NOX Ozone Season Group 2 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart EEEEE of this 
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part and § 52.38(b)(1), (2)(i) and (iii), (6) through (11), and 

(13) of this chapter (including such a program that is revised 

in a SIP revision approved by the Administrator under 

§ 52.38(b)(7) or (8) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(6) 

or (9) of this chapter), as a means of mitigating interstate 

transport of ozone and NOX.

* * * * *

CSAPR SO2 Group 1 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with this subpart and § 52.39(a), (b), (d) through 

(f), and (j) through (l) of this chapter (including such a 

program that is revised in a SIP revision approved by the 

Administrator under § 52.39(d) or (e) of this chapter or that is 

established in a SIP revision approved by the Administrator 

under § 52.39(f) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.

* * * * *

Designated representative means, for a CSAPR SO2 Group 1 

source and each CSAPR SO2 Group 1 unit at the source, the natural 

person who is authorized by the owners and operators of the 

source and all such units at the source, in accordance with this 

subpart, to represent and legally bind each owner and operator 
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in matters pertaining to the CSAPR SO2 Group 1 Trading Program. 

If the CSAPR SO2 Group 1 source is also subject to the Acid Rain 

Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season 

Group 1 Trading Program, or CSAPR NOX Ozone Season Group 2 

Trading Program, then this natural person shall be the same 

natural person as the designated representative as defined in 

the respective program.

* * * * *

Heat input means, for a unit for a specified period of unit 

operating time, the product (in mmBtu) of the gross calorific 

value of the fuel (in mmBtu/lb) fed into the unit multiplied by 

the fuel feed rate (in lb of fuel/time) and unit operating time, 

as measured, recorded, and reported to the Administrator by the 

designated representative and as modified by the Administrator 

in accordance with this subpart and excluding the heat derived 

from preheated combustion air, recirculated flue gases, or 

exhaust.

Heat input rate means, for a unit, the quotient (in 

mmBtu/hr) of the amount of heat input for a specified period of 

unit operating time (in mmBtu) divided by unit operating time 

(in hr) or, for a unit and a specific fuel, the amount of heat 

input attributed to the fuel (in mmBtu) divided by the unit 

operating time (in hr) during which the unit combusts the fuel.
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Heat rate means, for a unit, the quotient (in mmBtu/unit of 

load) of the unit's maximum design heat input rate (in Btu/hr) 

divided by the product of 1,000,000 Btu/mmBtu and the unit's 

maximum hourly load.

* * * * *

Potential electrical output capacity means, for a unit (in 

MWh/yr), 33 percent of the unit's maximum design heat input rate 

(in Btu/hr), divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, 

and multiplied by 8,760 hr/yr.

* * * * *

State means one of the States that is subject to the CSAPR 

SO2 Group 1 Trading Program pursuant to § 52.39(a), (b), (d) 

through (f), and (j) through (l) of this chapter.

* * * * *

§ 97.603 [Amended]

■ 108. Section 97.603 is amended by:

a. Adding in alphabetical order the list entry “CSAPR—

Cross-State Air Pollution Rule”;

b. Removing the list entry “kW—kilowatt electrical”;

c. Removing the list entry “kWh—kilowatt hour” and adding 

in its place the entry “kWh—kilowatt-hour”;

d. Removing the list entry “MWh—megawatt hour” and adding 

in its place the entry “MWh—megawatt-hour”; and
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e. Adding in alphabetical order the list entries “SIP—State 

implementation plan” and “TR—Transport Rule”.

§ 97.604 [Amended]

■ 109. Section 97.604 is amended by:

a. In paragraph (b)(1)(i)(B), removing the word “electric” 

and adding in its place the word “electrical”;

b. In paragraph (b)(2)(ii), removing the text “paragraph 

(b)(1)(i)” and adding in its place the text “paragraph 

(b)(2)(i)”; and

c. Italicizing the headings of paragraphs (c)(1) and (2).

§ 97.605 [Amended]

■ 110. Section 97.605, paragraph (b) is amended by italicizing 

the heading.

§ 97.606 [Amended]

■ 111. Section 97.606 is amended by:

a. Italicizing the headings of paragraphs (c)(1) and (2) 

and (c)(4) through (7);

b. In paragraph (c)(2)(ii), after the words “immediately 

after” adding the words “the year of”;

c. In paragraph (c)(4) heading, after the words “Vintage 

of” adding the text “CSAPR SO2 Group 1”;

d. In paragraphs (c)(4)(i) and (ii), after the word 

“allocated” adding the words “or auctioned”; and 
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e. In paragraph (d)(2), removing the text “subpart H” and 

adding in its place the text “subpart B”.

■ 112. Section 97.610 is amended by:

a. Revising the section heading;

b. Revising paragraph (a) introductory text;

c. In paragraphs (a)(1) through (16):

i. Removing the word “trading” and adding in its place the 

text “Group 1 trading”;

ii. Removing the text “SO2 new” and adding in its place the 

word “new”; and 

iii. Removing the text “SO2 Indian” and adding in its place 

the word “Indian”;

d. Adding and reserving paragraphs (a)(2)(vi) and 

(a)(11)(vi);

e. In paragraphs (b)(1) through (16), removing the text 

“SO2”; and

f. Revising paragraph (c).

The revisions read as follows:

§ 97.610 State SO2 Group 1 trading budgets, new unit set-asides, 

Indian country new unit set-asides, and variability limits.

(a) The State SO2 Group 1 trading budgets, new unit setasides, and Indian country new unit set-asides for allocations 
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of CSAPR SO2 Group 1 allowances for the control periods in 2015 

and thereafter are as follows:

* * * * *

(c) Each State SO2 Group 1 trading budget in this section 

includes any tons in a new unit set-aside or Indian country new 

unit set-aside but does not include any tons in a variability 

limit.

§ 97.611 Timing requirements for CSAPR SO2 Group 1 allowance 

allocations.

■ 113. Section 97.611 is amended by:

a. Revising the section heading to read as set forth above;

b. Italicizing the headings of paragraphs (b)(1) and (2);

c. In paragraphs (b)(1)(iii) and (b)(2)(iii), after the 

text “November 30 of” adding the word “the”;

d. In paragraph (b)(2)(v), removing the text “NOX Annual” 

and adding in its place the text “SO2 Group 1”;

e. In paragraph (c)(1)(ii), removing the text “§ 52.39(d), 

(e), or (f)” and adding in its place the text “§ 52.39(e) or 

(f)”;

f. In paragraph (c)(5)(i)(B), after the text “§ 52.39(e) or 

(f)” adding the words “of this chapter”; 
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g. In paragraph (c)(5)(ii) introductory text, removing the 

words “this paragraph” and adding in their place the words “this 

section”;

h. In paragraph (c)(5)(ii)(B), after the text “§ 52.39(e) 

or (f)” adding the words “of this chapter”; and

i. In paragraph (c)(5)(iii), removing the words “this 

paragraph” and adding in their place the words “this section”.

§ 97.612 CSAPR SO2 Group 1 allowance allocations to new units.

■ 114. Section 97.612 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(2), removing the text “§§” and adding 

in its place the text “§”;

c. In paragraph (a)(4)(i), removing the text “paragraph 

(a)(1)(i) through (iii)” and adding in its place the text 

“paragraphs (a)(1)(i) through (iii)”;

d. In paragraph (a)(4)(ii), after the text “paragraph 

(a)(4)(i)” adding the words “of this section”;

e. In paragraph (a)(9)(i), after the text “November 30 of” 

adding the word “the”;

f. In paragraph (b)(4)(ii), after the text “paragraph 

(b)(4)(i)” adding the words “of this section”;

g. In paragraph (b)(9)(i), after the text “November 30 of” 

adding the word “the”;
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h. In paragraph (b)(10)(ii), removing the text “§ 52.39(d), 

(e), or (f)” and adding in its place the text “§ 52.39(e) or 

(f)”; and

i. In paragraph (b)(11), after the text “paragraphs (b)(9), 

(10) and (12)” adding the words “of this section”.

■ 115. Section 97.616 is amended by:

a. In paragraph (a)(1), removing the word “Country” and 

adding in its place the word “country”; and

b. Adding paragraph (c).

The additions read as follows:

§ 97.616 Certificate of representation.

* * * * *

(c) A certificate of representation under this section that 

complies with the provisions of paragraph (a) of this section 

except that it contains the acronym “TR” in place of the acronym 

“CSAPR” in the required certification statements will be 

considered a complete certificate of representation under this 

section, and the certification statements included in such 

certificate of representation will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.

■ 116. Section 97.620 is amended by:

a. Italicizing the headings of paragraphs (c)(1) through 

(6);
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b. Adding paragraph (c)(1)(iv);

c. In paragraph (c)(2)(i) introductory text, removing the 

text “paragraph (b)(1)” and adding in its place the text 

“paragraph (c)(1)”;

d. Adding paragraph (c)(2)(iv);

e. In paragraph (c)(4)(i), removing the text “paragraph 

(b)(1)” and adding in its place the text “paragraph (c)(1)”;

f. In paragraph (c)(5)(iii)(D), removing the words 

“authorized representative” and adding in their place the words 

“authorized account representative”;

g. In paragraph (c)(5)(v), removing the word “designated” 

two times and adding in its place the words “authorized 

account”; and

h. In paragraph (e), removing the text “paragraphs 

(c)(2)(ii) and (c)(5)” and adding in its place the text 

“paragraphs (c)(2)(ii) and (5)”.

The additions read as follows:

§ 97.620 Establishment of compliance accounts, assurance 

accounts, and general accounts.

* * * * *

(c) * * *

(1) * * *
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(iv) An application for a general account under paragraph 

(c)(1) of this section that complies with the provisions of such 

paragraph except that it contains the acronym “TR” in place of 

the acronym “CSAPR” in the required certification statement will 

be considered a complete application for a general account under 

such paragraph, and the certification statement included in such 

application for a general account will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.

(2) * * *

(iv) A certification statement submitted in accordance with 

paragraph (c)(2)(ii) of this section that contains the acronym 

“TR” will be interpreted as if the acronym “CSAPR” appeared in 

place of the acronym “TR”.

* * * * *

■ 117. Section 97.621 is amended by:

a. Revising the section heading;

b. In paragraphs (c), (d), and (e), removing the word 

“period” and adding in its place the word “periods”;

c. In paragraphs (f) and (g), removing the text “§ 52.39(e) 

and (f)” and adding in its place the text “§ 52.39(e) or (f)”; 

d. In paragraph (i), after the text “through (12)” removing 

the comma;

e. Revising paragraph (j); and 
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f. Redesignating paragraph (k) as paragraph (l) and adding 

a new paragraph (k). 

The revisions and additions read as follows:

§ 97.621 Recordation of CSAPR SO2 Group 1 allowance allocations 

and auction results.

* * * * *

(j) By February 15, 2016 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR SO2 Group 

1 source’s compliance account the CSAPR SO2 Group 1 allowances 

allocated to the CSAPR SO2 Group 1 units at the source in 

accordance with § 97.612(b)(9) through (12) for the control 

period in the year before the year of the applicable recordation 

deadline under this paragraph.

(k) By the date 15 days after the date on which any 

allocation or auction results, other than an allocation or 

auction results described in paragraphs (a) through (j) of this 

section, of CSAPR SO2 Group 1 allowances to a recipient is made 

by or are submitted to the Administrator in accordance with 

§ 97.611 or § 97.612 or with a SIP revision approved under 

§ 52.39(e) or (f) of this chapter, the Administrator will record 

such allocation or auction results in the appropriate Allowance 

Management System account.

* * * * *
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§ 97.622 Submission of CSAPR SO2 Group 1 allowance transfers.

■ 118. Section 97.622 is amended by revising the section heading 

to read as set forth above.

§ 97.623 Recordation of CSAPR SO2 Group 1 allowance transfers.

■ 119. Section 97.623 is amended by: 

a. Revising the section heading to read as set forth above; 

and

b. In paragraph (b), after the word “allocated” adding the 

words “or auctioned”.

■ 120. Section 97.624 is amended by: 

a. Revising the section heading; 

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. Revising paragraphs (c)(2)(i) and (c)(2)(ii); and

d. In paragraph (d), after the word “allocated” adding the 

words “or auctioned”.

The revisions read as follows:

§ 97.624 Compliance with CSAPR SO2 Group 1 emissions limitation.

* * * * *

(c) * * *

(2) * * *

(i) Any CSAPR SO2 Group 1 allowances that were recorded in 

the compliance account pursuant to § 97.621 and not transferred 
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out of the compliance account, in the order of recordation; and 

then

(ii) Any other CSAPR SO2 Group 1 allowances that were 

transferred to and recorded in the compliance account pursuant 

to this subpart, in the order of recordation.

* * * * *

§ 97.625 Compliance with CSAPR SO2 Group 1 assurance provisions.

■ 121. Section 97.625 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. In paragraph (b)(2)(iii) introductory text, removing the 

text “paragraph (b)(1)(i)” and adding in its place the text 

“paragraph (b)(1)(ii)”; and

d. In paragraph (b)(2)(iii)(B), after the words 

“availability of” adding the words “the calculations 

incorporating”.

§ 97.628 [Amended]

■ 122. Section 97.628, paragraph (b) is amended by removing the 

text “paragraph (a)(1)” and adding in its place the text 

“paragraph (a)”.

■ 123. Section 97.630 is amended by:
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a. Revising paragraph (b) introductory text and paragraphs 

(b)(1) and (2);

b. In paragraph (b)(3) introductory text, removing the text 

“§§ 75.4(e)(1) through (e)(4)” and adding in its place the text 

“§ 75.4(e)(1) through (4)”; and

c. In paragraph (b)(3)(iii), after the text “§ 75.66” 

adding the words “of this chapter”.

The revisions read as follows:

§ 97.630 General monitoring, recordkeeping, and reporting 

requirements.

* * * * *

(b) Compliance deadlines. Except as provided in paragraph 

(e) of this section, the owner or operator of a CSAPR SO2 Group 1 

unit shall meet the monitoring system certification and other 

requirements of paragraphs (a)(1) and (2) of this section on or 

before the later of the following dates and shall record, 

report, and quality-assure the data from the monitoring systems 

under paragraph (a)(1) of this section on and after the later of 

the following dates:

(1) January 1, 2015; or

(2) 180 calendar days after the date on which the unit 

commences commercial operation.

* * * * *
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§ 97.631 [Amended]

■ 124. Section 97.631 is amended by:

a. Italicizing the headings of paragraphs (d)(1) through 

(3), (d)(3)(i) through (iv), (d)(3)(iv)(A) through (D), and 

(d)(3)(v);

b. In paragraph (d)(3) introductory text, removing the text 

“§§” and adding in its place the text “§”; and

c. Redesignating paragraphs (d)(3)(v)(A)(1) through (3) as 

paragraphs (d)(3)(v)(A)(1) through (3).

■ 125. Section 97.634 is amended by:

a. In paragraph (b), after the words “comply with” adding 

the word “the”; and

b. Revising paragraphs (d)(1) and (3). 

The revisions read as follows:

§ 97.634 Recordkeeping and reporting. 

* * * * *

(d) * * *

(1) The designated representative shall report the SO2 mass 

emissions data and heat input data for a CSAPR SO2 Group 1 unit, 

in an electronic quarterly report in a format prescribed by the 

Administrator, for each calendar quarter beginning with the 

later of:
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(i) The calendar quarter covering January 1, 2015 through 

March 31, 2015; or

(ii) The calendar quarter corresponding to the earlier of 

the date of provisional certification or the applicable deadline 

for initial certification under § 97.630(b).

* * * * *

(3) For CSAPR SO2 Group 1 units that are also subject to the 

Acid Rain Program, CSAPR NOX Annual Trading Program, CSAPR NOX

Ozone Season Group 1 Trading Program, or CSAPR NOX Ozone Season 

Group 2 Trading Program, quarterly reports shall include the 

applicable data and information required by subparts F through H 

of part 75 of this chapter as applicable, in addition to the SO2

mass emission data, heat input data, and other information 

required by this subpart.

* * * * *

§ 97.635 [Amended]

■ 126. Section 97.635 is amended by redesignating paragraphs 

(b)(i) through (v) as paragraphs (b)(1) through (5).

Subpart DDDDD—CSAPR SO2 Group 2 Trading Program

■ 127. The heading of subpart DDDDD of part 97 is revised to 

read as set forth above.

§ 97.701 [Amended]
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■ 128. Section 97.701 is amended by removing the text “Transport 

Rule (TR) SO2 Group 2 Trading Program” and adding in its place 

the text “Cross-State Air Pollution Rule (CSAPR) SO2 Group 2 

Trading Program”.

§§ 97.702 through 97.735 [Amended]

■ 129. Sections 97.702 through 97.735 are amended by removing 

the text “TR” wherever it appears and adding in its place the 

text “CSAPR”.

■ 130. Section 97.702 is amended by:

a. Revising the section’s introductory text and the 

definitions “Allowable SO2 emission rate” and “Allowance 

Management System”;

b. In the definition “Allowance Management System account”, 

removing the word “holding” and adding in its place the text 

“auction, holding”;

c. Revising the definition “Alternate designated 

representative”;

d. Adding in alphabetical order the definition “Auction”;

e. In the definition “Cogeneration system”, removing the 

words “steam turbine”;

f. In the definition “Commence commercial operation”, 

paragraph (2) introductory text, after the words “defined in” 

adding the word “the”;
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g. In the definition “Common designated representative’s 

share”, paragraph (2), removing the words “and of the total” and 

adding in their place the words “and the total”;

h. Removing the newly amended definition “CSAPR NOX Ozone 

Season Trading Program”;

i. Adding in alphabetical order the definitions “CSAPR NOX

Ozone Season Group 1 Trading Program” and “CSAPR NOX Ozone Season 

Group 2 Trading Program”;

j. Italicizing the newly amended definition titles “CSAPR 

SO2 Group 2 allowance deduction or deduct CSAPR SO2 Group 2

allowances” and “CSAPR SO2 Group 2 allowances held or hold CSAPR 

SO2 Group 2 allowances”;

k. Revising the newly amended definition “CSAPR SO2 Group 2

Trading Program” and the definition “Designated representative”;

l. In the definition “Fossil fuel”, paragraph (2), removing 

the text “§§” and adding in its place the text "§”;

m. Removing the definition “Gross electrical output”;

n. Revising the definitions “Heat input”, “Heat input 

rate”, and “Heat rate”;

o. In the definition title “Maximum design heat input”, 

after the words “heat input” adding the word “rate”;

p. Revising the definition “Potential electrical output 

capacity”;
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q. In the definition “Sequential use of energy”, paragraph 

(2), after the word “from” adding the word “a”; and

r. Revising the definition “State”.

The revisions and additions read as follows:

§ 97.702 Definitions

The terms used in this subpart shall have the meanings set 

forth in this section as follows, provided that any term that 

includes the acronym “CSAPR” shall be considered synonymous with 

a term that is used in a SIP revision approved by the 

Administrator under § 52.38 or § 52.39 of this chapter and that 

is substantively identical except for the inclusion of the 

acronym “TR” in place of the acronym “CSAPR”:

* * * * *

Allowable SO2 emission rate means, for a unit, the most 

stringent State or federal SO2 emission rate limit (in lb/MWh or, 

if in lb/mmBtu, converted to lb/MWh by multiplying it by the 

unit's heat rate in mmBtu/MWh) that is applicable to the unit 

and covers the longest averaging period not exceeding one year.

Allowance Management System means the system by which the 

Administrator records allocations, auctions, transfers, and 

deductions of CSAPR SO2 Group 2 allowances under the CSAPR SO2

Group 2 Trading Program. Such allowances are allocated, 
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auctioned, recorded, held, transferred, or deducted only as 

whole allowances.

* * * * *

Alternate designated representative means, for a CSAPR SO2

Group 2 source and each CSAPR SO2 Group 2 unit at the source, the 

natural person who is authorized by the owners and operators of 

the source and all such units at the source, in accordance with 

this subpart, to act on behalf of the designated representative 

in matters pertaining to the CSAPR SO2 Group 2 Trading Program. 

If the CSAPR SO2 Group 2 source is also subject to the Acid Rain 

Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season 

Group 1 Trading Program, or CSAPR NOX Ozone Season Group 2 

Trading Program, then this natural person shall be the same 

natural person as the alternate designated representative as 

defined in the respective program.

* * * * *

Auction means, with regard to CSAPR SO2 Group 2 allowances, 

the sale to any person by a State or permitting authority, in 

accordance with a SIP revision submitted by the State and 

approved by the Administrator under § 52.39(h) or (i) of this 

chapter, of such CSAPR SO2 Group 2 allowances to be initially 

recorded in an Allowance Management System account.

* * * * *
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CSAPR NOX Ozone Season Group 1 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart BBBBB of this 

part and § 52.38(b)(1), (2)(i) and (ii), (3) through (5), and 

(10) through (12) of this chapter (including such a program that 

is revised in a SIP revision approved by the Administrator under 

§ 52.38(b)(3) or (4) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(5) 

of this chapter), as a means of mitigating interstate transport 

of ozone and NOX.

CSAPR NOX Ozone Season Group 2 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart EEEEE of this 

part and § 52.38(b)(1), (2)(i) and (iii), (6) through (11), and 

(13) of this chapter (including such a program that is revised 

in a SIP revision approved by the Administrator under

§ 52.38(b)(7) or (8) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.38(b)(6) 

or (9) of this chapter), as a means of mitigating interstate 

transport of ozone and NOX.

* * * * *

CSAPR SO2 Group 2 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 
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in accordance with this subpart and § 52.39(a), (c), (g) through 

(k), and (m) of this chapter (including such a program that is 

revised in a SIP revision approved by the Administrator under 

§ 52.39(g) or (h) of this chapter or that is established in a 

SIP revision approved by the Administrator under § 52.39(i) of 

this chapter), as a means of mitigating interstate transport of 

fine particulates and SO2.

* * * * *

Designated representative means, for a CSAPR SO2 Group 2 

source and each CSAPR SO2 Group 2 unit at the source, the natural 

person who is authorized by the owners and operators of the 

source and all such units at the source, in accordance with this 

subpart, to represent and legally bind each owner and operator 

in matters pertaining to the CSAPR SO2 Group 2 Trading Program. 

If the CSAPR SO2 Group 2 source is also subject to the Acid Rain 

Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season 

Group 1 Trading Program, or CSAPR NOX Ozone Season Group 2 

Trading Program, then this natural person shall be the same 

natural person as the designated representative as defined in 

the respective program.

* * * * *

Heat input means, for a unit for a specified period of unit 

operating time, the product (in mmBtu) of the gross calorific 
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value of the fuel (in mmBtu/lb) fed into the unit multiplied by 

the fuel feed rate (in lb of fuel/time) and unit operating time, 

as measured, recorded, and reported to the Administrator by the 

designated representative and as modified by the Administrator 

in accordance with this subpart and excluding the heat derived 

from preheated combustion air, recirculated flue gases, or 

exhaust.

Heat input rate means, for a unit, the quotient (in 

mmBtu/hr) of the amount of heat input for a specified period of 

unit operating time (in mmBtu) divided by unit operating time 

(in hr) or, for a unit and a specific fuel, the amount of heat 

input attributed to the fuel (in mmBtu) divided by the unit 

operating time (in hr) during which the unit combusts the fuel.

Heat rate means, for a unit, the quotient (in mmBtu/unit of 

load) of the unit's maximum design heat input rate (in Btu/hr) 

divided by the product of 1,000,000 Btu/mmBtu and the unit's 

maximum hourly load.

* * * * *

Potential electrical output capacity means, for a unit (in 

MWh/yr), 33 percent of the unit's maximum design heat input rate 

(in Btu/hr), divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, 

and multiplied by 8,760 hr/yr.

* * * * *
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State means one of the States that is subject to the CSAPR 

SO2 Group 2 Trading Program pursuant to § 52.39(a), (c), (g) 

through (k), and (m) of this chapter.

* * * * *

§ 97.703 [Amended]

■ 131. Section 97.703 is amended by:

a. Adding in alphabetical order the list entry “CSAPR—

Cross-State Air Pollution Rule”;

b. Removing the list entry “kW—kilowatt electrical”;

c. Removing the list entry “kWh—kilowatt hour” and adding 

in its place the entry “kWh—kilowatt-hour”;

d. Removing the list entry “MWh—megawatt hour” and adding 

in its place the entry “MWh—megawatt-hour”; and

e. Adding in alphabetical order the list entries “SIP—State 

implementation plan” and “TR—Transport Rule”.

§ 97.704 [Amended]

■ 132. Section 97.704 is amended by:

a. In paragraph (b)(1)(i)(B), removing the word “electric” 

and adding in its place the word “electrical”;

b. In paragraph (b)(2)(ii), removing the text “paragraph 

(b)(1)(i)” and adding in its place the text “paragraph 

(b)(2)(i)”; and 

c. Italicizing the headings of paragraphs (c)(1) and (2).
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§ 97.705 [Amended]

■ 133. Section 97.705, paragraph (b) is amended by italicizing 

the heading.

§ 97.706 [Amended]

■ 134. Section 97.706 is amended by:

a. Italicizing the headings of paragraphs (c)(1) and (2) 

and (c)(4) through (7);

b. In paragraph (c)(2)(ii), after the words “immediately 

after” adding the words “the year of”;

c. In paragraph (c)(4) heading, after the words “Vintage 

of” adding the text “CSAPR SO2 Group 2”;

d. In paragraphs (c)(4)(i) and (ii), after the word 

“allocated” adding the words “or auctioned”; and 

e. In paragraph (d)(2), removing the text “subpart H” and 

adding in its place the text “subpart B”.

■ 135. Section 97.710 is amended by:

a. Revising the section heading;

b. Revising paragraph (a) introductory text;

c. In paragraphs (a)(1) through (7):

i. Removing the word “trading” and adding in its place the 

text “Group 2 trading”;

ii. Removing the text “SO2 new” and adding in its place the 

word “new”; and 
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iii. Removing the text “SO2 Indian” and adding in its place 

the word “Indian”;

d. In paragraphs (b)(1) through (7), removing the text 

“SO2”; and

e. Revising paragraph (c).

The revisions read as follows:

§ 97.710 State SO2 Group 2 trading budgets, new unit set-asides, 

Indian country new unit set-asides, and variability limits.

(a) The State SO2 Group 2 trading budgets, new unit setasides, and Indian country new unit set-asides for allocations 

of CSAPR SO2 Group 1 allowances for the control periods in 2015 

and thereafter are as follows:

* * * * *

(c) Each State SO2 Group 2 trading budget in this section 

includes any tons in a new unit set-aside or Indian country new 

unit set-aside but does not include any tons in a variability 

limit.

§ 97.711 Timing requirements for CSAPR SO2 Group 2 allowance 

allocations.

■ 136. Section 97.711 is amended by:

a. Revising the section heading to read as set forth above;

b. Italicizing the headings of paragraphs (b)(1) and (2);
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c. In paragraph (b)(1)(iii), after the text “November 30 

of” adding the word “the”;

d. In paragraph (b)(1)(iv)(B), removing the words “the 

each” and adding in their place the word “each”;

e. In paragraph (b)(2)(iii), after the text “November 30 

of” adding the word “the”;

f. In paragraph (b)(2)(iv)(B), removing the words “the 

each” and adding in their place the word “each”;

g. In paragraph (c)(1) introductory text, removing the word 

“approved” two times and adding in its place the words “approved 

under”;

h. In paragraph (c)(1)(ii), removing the text “§ 52.39(g), 

(h), or (i)” and adding in its place the text “§ 52.39(h) or 

(i)”;

i. In paragraph (c)(5)(i)(B), after the text “§ 52.39(h) or 

(i)” adding the words “of this chapter”;

j. In paragraph (c)(5)(ii) introductory text, removing the 

words “this paragraph” and adding in their place the words “this 

section”;

k. In paragraph (c)(5)(ii)(B), after the text “§ 52.39(h) 

or (i)” adding the words “of this chapter”; and

l. In paragraph (c)(5)(iii), removing the words “this 

paragraph” and adding in their place the words “this section”.
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§ 97.712 CSAPR SO2 Group 2 allowance allocations to new units.

■ 137. Section 97.712 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(2), removing the text “§§” and adding 

in its place the text “§”;

c. In paragraph (a)(4)(i), removing the text “paragraph 

(a)(1)(i) through (iii)” and adding in its place the text 

“paragraphs (a)(1)(i) through (iii)”;

d. In paragraph (a)(4)(ii), after the text “paragraph 

(a)(4)(i)” adding the words “of this section”;

e. In paragraph (a)(9)(i), after the text “November 30 of” 

adding the word “the”;

f. In paragraph (b)(4)(ii), after the text “paragraph 

(b)(4)(i)” adding the words “of this section”;

g. In paragraph (b)(9)(i), after the text “November 30 of” 

adding the word “the”; and

h. In paragraph (b)(10)(ii), removing the text “§ 52.39(g), 

(h), or (i)” and adding in its place the text “§ 52.39(h) or 

(i)”.

■ 138. Section 97.716 is amended by:

a. In paragraph (a)(1), removing the word “Country” and 

adding in its place the word “country”; and

b. Adding paragraph (c).
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The additions read as follows:

§ 97.716 Certificate of representation.

* * * * *

(c) A certificate of representation under this section that 

complies with the provisions of paragraph (a) of this section 

except that it contains the acronym “TR” in place of the acronym 

“CSAPR” in the required certification statements will be 

considered a complete certificate of representation under this 

section, and the certification statements included in such 

certificate of representation will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.

■ 139. Section 97.720 is amended by:

a. Italicizing the headings of paragraphs (c)(1) through 

(6);

b. Adding paragraph (c)(1)(iv);

c. In paragraph (c)(2)(i) introductory text, removing the 

text “paragraph (b)(1)” and adding in its place the text 

“paragraph (c)(1)”;

d. Adding paragraph (c)(2)(iv);

e. In paragraph (c)(4)(i), removing the text “paragraph 

(b)(1)” and adding in its place the text “paragraph (c)(1)”;
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f. In paragraph (c)(5)(iii)(D), removing the words 

“authorized representative” and adding in their place the words 

“authorized account representative”;

g. In paragraph (c)(5)(v), removing the word “designated” 

two times and adding in its place the words “authorized 

account”; and

h. In paragraph (e), removing the text “paragraphs 

(c)(2)(ii) and (c)(5)” and adding in its place the text 

“paragraphs (c)(2)(ii) and (5)”.

The additions read as follows:

§ 97.720 Establishment of compliance accounts, assurance 

accounts, and general accounts.

* * * * *

(c) * * *

(1) * * *

(iv) An application for a general account under paragraph 

(c)(1) of this section that complies with the provisions of such 

paragraph except that it contains the acronym “TR” in place of 

the acronym “CSAPR” in the required certification statement will 

be considered a complete application for a general account under 

such paragraph, and the certification statement included in such 

application for a general account will be interpreted as if the 

acronym “CSAPR” appeared in place of the acronym “TR”.
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(2) * * *

(iv) A certification statement submitted in accordance with 

paragraph (c)(2)(ii) of this section that contains the acronym 

“TR” will be interpreted as if the acronym “CSAPR” appeared in 

place of the acronym “TR”. 

* * * * *

■ 140. Section 97.721 is amended by:

a. Revising the section heading;

b. In paragraphs (c), (d), and (e), removing the word 

“period” and adding in its place the word “periods”‘;

c. In paragraphs (f) and (g), removing the text “§ 52.39(h) 

and (i)” and adding in its place the text “§ 52.39(h) or (i)”;

d. In paragraph (i), after the text “through (12)” removing 

the comma; 

e. Revising paragraph (j); and 

f. Redesignating paragraph (k) as paragraph (l) and adding 

a new paragraph (k). 

The revisions and additions read as follows:

§ 97.721 Recordation of CSAPR SO2 Group 2 allowance allocations 

and auction results.

* * * * *

(j) By February 15, 2016 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR SO2 Group 
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2 source’s compliance account the CSAPR SO2 Group 2 allowances 

allocated to the CSAPR SO2 Group 2 units at the source in 

accordance with § 97.712(b)(9) through (12) for the control 

period in the year before the year of the applicable recordation 

deadline under this paragraph.

(k) By the date 15 days after the date on which any 

allocation or auction results, other than an allocation or 

auction results described in paragraphs (a) through (j) of this 

section, of CSAPR SO2 Group 2 allowances to a recipient is made 

by or are submitted to the Administrator in accordance with 

§ 97.711 or § 97.712 or with a SIP revision approved under 

§ 52.39(h) or (i) of this chapter, the Administrator will record 

such allocation or auction results in the appropriate Allowance 

Management System account.

* * * * *

§ 97.722 Submission of CSAPR SO2 Group 2 allowance transfers.

■ 141. Section 97.722 is amended by revising the section heading 

to read as set forth above.

§ 97.723 Recordation of CSAPR SO2 Group 2 allowance transfers.

■ 142. Section 97.723 is amended by: 

a. Revising the section heading to read as set forth above; 

and
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b. In paragraph (b), after the word “allocated” adding the 

words “or auctioned”.

■ 143. Section 97.724 is amended by: 

a. Revising the section heading; 

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. Revising paragraphs (c)(2)(i) and (c)(2)(ii); and

d. In paragraph (d), after the word “allocated” adding the 

words “or auctioned”.

The revisions read as follows:

§ 97.724 Compliance with CSAPR SO2 Group 2 emissions limitation.

* * * * *

(c) * * *

(2) * * *

(i) Any CSAPR SO2 Group 2 allowances that were recorded in 

the compliance account pursuant to § 97.721 and not transferred 

out of the compliance account, in the order of recordation; and 

then

(ii) Any other CSAPR SO2 Group 2 allowances that were 

transferred to and recorded in the compliance account pursuant 

to this subpart, in the order of recordation.

* * * * *

§ 97.725 Compliance with CSAPR SO2 Group 2 assurance provisions.
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■ 144. Section 97.725 is amended by:

a. Revising the section heading to read as set forth above;

b. In paragraph (a)(1), after the word “allocated” adding 

the words “or auctioned”;

c. In paragraph (b)(2)(iii) introductory text, removing the 

text “paragraph (b)(1)(i)” and adding in its place the text 

“paragraph (b)(1)(ii)”;

d. In paragraph (b)(2)(iii)(B), after the words 

“availability of” adding the words “the calculations 

incorporating”; and

e. In paragraph (b)(6)(iii)(B), after the word 

“appropriate” removing the word “at”.

§ 97.728 [Amended]

■ 145. Section 97.728, paragraph (b) is amended by removing the 

text “paragraph (a)(1)” and adding in its place the text 

“paragraph (a)”.

■ 146. Section 97.730 is amended by:

a. Italicizing the heading of paragraph (a);

b. Revising paragraph (b) introductory text and paragraphs 

(b)(1) and (2);

c. In paragraph (b)(3) introductory text, removing the text 

“§§ 75.4(e)(1) through (e)(4)” and adding in its place the text 

“§ 75.4(e)(1) through (4)”; and
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d. In paragraph (b)(3)(iii), after the text “§ 75.66” 

adding the words “of this chapter”.

The revisions read as follows:

§ 97.730 General monitoring, recordkeeping, and reporting 

requirements.

* * * * *

(b) Compliance deadlines. Except as provided in paragraph 

(e) of this section, the owner or operator of a CSAPR SO2 Group 2 

unit shall meet the monitoring system certification and other 

requirements of paragraphs (a)(1) and (2) of this section on or 

before the later of the following dates and shall record, 

report, and quality-assure the data from the monitoring systems 

under paragraph (a)(1) of this section on and after the later of 

the following dates:

(1) January 1, 2015; or

(2) 180 calendar days after the date on which the unit 

commences commercial operation.

* * * * *

§ 97.731 [Amended]

■ 147. Section 97.731 is amended by:

a. Italicizing the headings of paragraphs (d)(1) through 

(3), (d)(3)(i) through (iv), (d)(3)(iv)(A) through (D), and 

(d)(3)(v);
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b. In paragraph (d)(3) introductory text, removing the text 

“§§” and adding in its place the text “§”; and

c. Redesignating paragraphs (d)(3)(v)(A)(1) through (3) as 

paragraphs (d)(3)(v)(A)(1) through (3).

■ 148. Section 97.734 is amended by:

a. In paragraph (b), after the words “comply with” adding 

the word “the”; and

b. Revising paragraphs (d)(1) and (3). 

The revisions read as follows:

§ 97.734 Recordkeeping and reporting. 

* * * * *

(d) * * *

(1) The designated representative shall report the SO2 mass 

emissions data and heat input data for a CSAPR SO2 Group 2 unit, 

in an electronic quarterly report in a format prescribed by the 

Administrator, for each calendar quarter beginning with the 

later of:

(i) The calendar quarter covering January 1, 2015 through 

March 31, 2015; or

(ii) The calendar quarter corresponding to the earlier of 

the date of provisional certification or the applicable deadline 

for initial certification under § 97.730(b).

* * * * *
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(3) For CSAPR SO2 Group 2 units that are also subject to the 

Acid Rain Program, CSAPR NOX Annual Trading Program, CSAPR NOX

Ozone Season Group 1 Trading Program, or CSAPR NOX Ozone Season 

Group 2 Trading Program, quarterly reports shall include the 

applicable data and information required by subparts F through H 

of part 75 of this chapter as applicable, in addition to the SO2

mass emission data, heat input data, and other information 

required by this subpart.

* * * * *

§ 97.735 [Amended]

■ 149. Section 97.735 is amended by redesignating paragraphs 

(b)(i) through (v) as paragraphs (b)(1) through (5).

■ 150. Part 97 is amended by adding subpart EEEEE, consisting of 

§§ 97.801 through 97.835, to read as follows:

Subpart EEEEE—CSAPR NOX Ozone Season Group 2 Trading Program

97.801 Purpose.

97.802 Definitions.

97.803 Measurements, abbreviations, and acronyms.

97.804 Applicability.

97.805 Retired unit exemption.

97.806 Standard requirements.

97.807 Computation of time.

97.808 Administrative appeal procedures.

97.809 [Reserved]

97.810 State NOX Ozone Season Group 2 trading budgets, new unit 

set-asides, Indian country new unit set-asides, and variability 

limits.

97.811 Timing requirements for CSAPR NOX Ozone Season Group 2 

allowance allocations.
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97.812 CSAPR NOX Ozone Season Group 2 allowance allocations to 

new units.

97.813 Authorization of designated representative and alternate 

designated representative.

97.814 Responsibilities of designated representative and 

alternate designated representative.

97.815 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.

97.816 Certificate of representation.

97.817 Objections concerning designated representative and 

alternate designated representative.

97.818 Delegation by designated representative and alternate 

designated representative.

97.819 [Reserved]

97.820 Establishment of compliance accounts, assurance accounts, 

and general accounts.

97.821 Recordation of CSAPR NOX Ozone Season Group 2 allowance 

allocations and auction results.

97.822 Submission of CSAPR NOX Ozone Season Group 2 allowance 

transfers.

97.823 Recordation of CSAPR NOX Ozone Season Group 2 allowance 

transfers.

97.824 Compliance with CSAPR NOX Ozone Season Group 2 emissions 

limitation.

97.825 Compliance with CSAPR NOX Ozone Season Group 2 assurance 

provisions.

97.826 Banking.

97.827 Account error.

97.828 Administrator’s action on submissions.

97.829 [Reserved]

97.830 General monitoring, recordkeeping, and reporting 

requirements.

97.831 Initial monitoring system certification and 

recertification procedures.

97.832 Monitoring system out-of-control periods.

97.833 Notifications concerning monitoring.

97.834 Recordkeeping and reporting.

97.835 Petitions for alternatives to monitoring, recordkeeping, 

or reporting requirements.

Subpart EEEEE—CSAPR NOX Ozone Season Group 2 Trading Program

§ 97.801 Purpose.
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This subpart sets forth the general, designated 

representative, allowance, and monitoring provisions for the 

Cross-State Air Pollution Rule (CSAPR) NOX Ozone Season Group 2 

Trading Program, under section 110 of the Clean Air Act and 

§ 52.38 of this chapter, as a means of mitigating interstate 

transport of ozone and nitrogen oxides.

§ 97.802 Definitions.

The terms used in this subpart shall have the meanings set 

forth in this section as follows, provided that any term that 

includes the acronym “CSAPR” shall be considered synonymous with 

a term that is used in a SIP revision approved by the 

Administrator under § 52.38 or § 52.39 of this chapter and that 

is substantively identical except for the inclusion of the 

acronym “TR” in place of the acronym “CSAPR”:

Acid Rain Program means a multi-state SO2 and NOX air 

pollution control and emission reduction program established by 

the Administrator under title IV of the Clean Air Act and parts 

72 through 78 of this chapter.

Administrator means the Administrator of the United States 

Environmental Protection Agency or the Director of the Clean Air 

Markets Division (or its successor determined by the 

Administrator) of the United States Environmental Protection 
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Agency, the Administrator’s duly authorized representative under 

this subpart.

Allocate or allocation means, with regard to CSAPR NOX Ozone 

Season Group 2 allowances, the determination by the 

Administrator, State, or permitting authority, in accordance 

with this subpart, § 97.526(c), and any SIP revision submitted 

by the State and approved by the Administrator under 

§ 52.38(b)(6), (7), (8), or (9) of this chapter, of the amount 

of such CSAPR NOX Ozone Season Group 2 allowances to be initially 

credited, at no cost to the recipient, to:

(1) A CSAPR NOX Ozone Season Group 2 unit;

(2) A new unit set-aside;

(3) An Indian country new unit set-aside; or

(4) An entity not listed in paragraphs (1) through (3) of 

this definition;

(5) Provided that, if the Administrator, State, or 

permitting authority initially credits, to a CSAPR NOX Ozone 

Season Group 2 unit qualifying for an initial credit, a credit 

in the amount of zero CSAPR NOX Ozone Season Group 2 allowances, 

the CSAPR NOX Ozone Season Group 2 unit will be treated as being 

allocated an amount (i.e., zero) of CSAPR NOX Ozone Season Group 

2 allowances.
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Allowable NOX emission rate means, for a unit, the most 

stringent State or federal NOX emission rate limit (in lb/MWh or, 

if in lb/mmBtu, converted to lb/MWh by multiplying it by the 

unit’s heat rate in mmBtu/MWh) that is applicable to the unit 

and covers the longest averaging period not exceeding one year.

Allowance Management System means the system by which the 

Administrator records allocations, auctions, transfers, and 

deductions of CSAPR NOX Ozone Season Group 2 allowances under the 

CSAPR NOX Ozone Season Group 2 Trading Program. Such allowances 

are allocated, auctioned, recorded, held, transferred, or 

deducted only as whole allowances.

Allowance Management System account means an account in the 

Allowance Management System established by the Administrator for 

purposes of recording the allocation, auction, holding, 

transfer, or deduction of CSAPR NOX Ozone Season Group 2 

allowances.

Allowance transfer deadline means, for a control period in 

a given year, midnight of March 1 (if it is a business day), or 

midnight of the first business day thereafter (if March 1 is not 

a business day), immediately after such control period and is 

the deadline by which a CSAPR NOX Ozone Season Group 2 allowance 

transfer must be submitted for recordation in a CSAPR NOX Ozone 

Season Group 2 source’s compliance account in order to be 
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available for use in complying with the source’s CSAPR NOX Ozone 

Season Group 2 emissions limitation for such control period in 

accordance with §§ 97.806 and 97.824.

Alternate designated representative means, for a CSAPR NOX

Ozone Season Group 2 source and each CSAPR NOX Ozone Season Group 

2 unit at the source, the natural person who is authorized by 

the owners and operators of the source and all such units at the 

source, in accordance with this subpart, to act on behalf of the 

designated representative in matters pertaining to the CSAPR NOX

Ozone Season Group 2 Trading Program. If the CSAPR NOX Ozone 

Season Group 2 source is also subject to the Acid Rain Program, 

CSAPR NOX Annual Trading Program, CSAPR SO2 Group 1 Trading 

Program, or CSAPR SO2 Group 2 Trading Program, then this natural 

person shall be the same natural person as the alternate 

designated representative as defined in the respective program.

Assurance account means an Allowance Management System 

account, established by the Administrator under § 97.825(b)(3) 

for certain owners and operators of a group of one or more base 

CSAPR NOX Ozone Season Group 2 sources and units in a given State 

(and Indian country within the borders of such State), in which 

are held CSAPR NOX Ozone Season Group 2 allowances available for 

use for a control period in a given year in complying with the 
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CSAPR NOX Ozone Season Group 2 assurance provisions in accordance 

with §§ 97.806 and 97.825.

Auction means, with regard to CSAPR NOX Ozone Season Group 2 

allowances, the sale to any person by a State or permitting 

authority, in accordance with a SIP revision submitted by the 

State and approved by the Administrator under § 52.38(b)(6), 

(8), or (9) of this chapter, of such CSAPR NOX Ozone Season Group 

2 allowances to be initially recorded in an Allowance Management 

System account.

Authorized account representative means, for a general 

account, the natural person who is authorized, in accordance 

with this subpart, to transfer and otherwise dispose of CSAPR NOX

Ozone Season Group 2 allowances held in the general account and, 

for a CSAPR NOX Ozone Season Group 2 source’s compliance account, 

the designated representative of the source.

Automated data acquisition and handling system or DAHS

means the component of the continuous emission monitoring 

system, or other emissions monitoring system approved for use 

under this subpart, designed to interpret and convert individual 

output signals from pollutant concentration monitors, flow 

monitors, diluent gas monitors, and other component parts of the 

monitoring system to produce a continuous record of the measured 

parameters in the measurement units required by this subpart.
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Base CSAPR NOX Ozone Season Group 2 source means a source 

that includes one or more base CSAPR NOX Ozone Season Group 2 

units.

Base CSAPR NOX Ozone Season Group 2 unit means a CSAPR NOX

Ozone Season Group 2 unit, provided that any unit that would not 

be a CSAPR NOX Ozone Season Group 2 unit under § 97.804(a) and 

(b) is not a base CSAPR NOX Ozone Season Group 2 unit 

notwithstanding the provisions of any SIP revision approved by 

the Administrator under § 52.38(b)(6), (8), or (9) of this 

chapter.

Biomass means—

(1) Any organic material grown for the purpose of being 

converted to energy;

(2) Any organic byproduct of agriculture that can be 

converted into energy; or

(3) Any material that can be converted into energy and is 

nonmerchantable for other purposes, that is segregated from 

other material that is nonmerchantable for other purposes, and 

that is;

(i) A forest-related organic resource, including mill 

residues, precommercial thinnings, slash, brush, or byproduct 

from conversion of trees to merchantable material; or
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(ii) A wood material, including pallets, crates, dunnage, 

manufacturing and construction materials (other than pressuretreated, chemically-treated, or painted wood products), and 

landscape or right-of-way tree trimmings.

Boiler means an enclosed fossil- or other-fuel-fired 

combustion device used to produce heat and to transfer heat to 

recirculating water, steam, or other medium.

Bottoming-cycle unit means a unit in which the energy input 

to the unit is first used to produce useful thermal energy, 

where at least some of the reject heat from the useful thermal 

energy application or process is then used for electricity 

production.

Business day means a day that does not fall on a weekend or 

a federal holiday.

Certifying official means a natural person who is:

(1) For a corporation, a president, secretary, treasurer, 

or vice-president of the corporation in charge of a principal 

business function or any other person who performs similar 

policy- or decision-making functions for the corporation;

(2) For a partnership or sole proprietorship, a general 

partner or the proprietor respectively; or
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(3) For a local government entity or State, federal, or 

other public agency, a principal executive officer or ranking 

elected official.

Clean Air Act means the Clean Air Act, 42 U.S.C. 7401, et 

seq.

Coal means “coal” as defined in § 72.2 of this chapter.

Coal-derived fuel means any fuel (whether in a solid, 

liquid, or gaseous state) produced by the mechanical, thermal, 

or chemical processing of coal.

Cogeneration system means an integrated group, at a source, 

of equipment (including a boiler, or combustion turbine, and a 

generator) designed to produce useful thermal energy for 

industrial, commercial, heating, or cooling purposes and 

electricity through the sequential use of energy.

Cogeneration unit means a stationary, fossil-fuel-fired 

boiler or stationary, fossil-fuel-fired combustion turbine that 

is a topping-cycle unit or a bottoming-cycle unit:

(1) Operating as part of a cogeneration system; and

(2) Producing on an annual average basis—

(i) For a topping-cycle unit,

(A) Useful thermal energy not less than 5 percent of total 

energy output; and
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(B) Useful power that, when added to one-half of useful 

thermal energy produced, is not less than 42.5 percent of total 

energy input, if useful thermal energy produced is 15 percent or 

more of total energy output, or not less than 45 percent of 

total energy input, if useful thermal energy produced is less 

than 15 percent of total energy output.

(ii) For a bottoming-cycle unit, useful power not less than 

45 percent of total energy input;

(3) Provided that the requirements in paragraph (2) of this 

definition shall not apply to a calendar year referenced in 

paragraph (2) of this definition during which the unit did not 

operate at all;

(4) Provided that the total energy input under paragraphs 

(2)(i)(B) and (2)(ii) of this definition shall equal the unit’s 

total energy input from all fuel, except biomass if the unit is 

a boiler; and

(5) Provided that, if, throughout its operation during the 

12-month period or a calendar year referenced in paragraph (2) 

of this definition, a unit is operated as part of a cogeneration 

system and the cogeneration system meets on a system-wide basis 

the requirement in paragraph (2)(i)(B) or (2)(ii) of this 

definition, the unit shall be deemed to meet such requirement 

during that 12-month period or calendar year.
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Combustion turbine means an enclosed device comprising:

(1) If the device is simple cycle, a compressor, a 

combustor, and a turbine and in which the flue gas resulting 

from the combustion of fuel in the combustor passes through the 

turbine, rotating the turbine; and

(2) If the device is combined cycle, the equipment 

described in paragraph (1) of this definition and any associated 

duct burner, heat recovery steam generator, and steam turbine.

Commence commercial operation means, with regard to a unit:

(1) To have begun to produce steam, gas, or other heated 

medium used to generate electricity for sale or use, including 

test generation, except as provided in § 97.805.

(i) For a unit that is a CSAPR NOX Ozone Season Group 2 unit 

under § 97.804 on the later of January 1, 2005 or the date the 

unit commences commercial operation as defined in the 

introductory text of paragraph (1) of this definition and that 

subsequently undergoes a physical change or is moved to a new 

location or source, such date shall remain the date of 

commencement of commercial operation of the unit, which shall 

continue to be treated as the same unit.

(ii) For a unit that is a CSAPR NOX Ozone Season Group 2 

unit under § 97.804 on the later of January 1, 2005 or the date 

the unit commences commercial operation as defined in the 
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introductory text of paragraph (1) of this definition and that 

is subsequently replaced by a unit at the same or a different 

source, such date shall remain the replaced unit’s date of 

commencement of commercial operation, and the replacement unit 

shall be treated as a separate unit with a separate date for 

commencement of commercial operation as defined in paragraph (1) 

or (2) of this definition as appropriate.

(2) Notwithstanding paragraph (1) of this definition and 

except as provided in § 97.805, for a unit that is not a CSAPR 

NOX Ozone Season Group 2 unit under § 97.804 on the later of 

January 1, 2005 or the date the unit commences commercial 

operation as defined in the introductory text of paragraph (1) 

of this definition, the unit’s date for commencement of 

commercial operation shall be the date on which the unit becomes 

a CSAPR NOX Ozone Season Group 2 unit under § 97.804.

(i) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 

of this definition and that subsequently undergoes a physical 

change or is moved to a different location or source, such date 

shall remain the date of commencement of commercial operation of 

the unit, which shall continue to be treated as the same unit.

(ii) For a unit with a date for commencement of commercial 

operation as defined in the introductory text of paragraph (2) 
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of this definition and that is subsequently replaced by a unit 

at the same or a different source, such date shall remain the 

replaced unit’s date of commencement of commercial operation, 

and the replacement unit shall be treated as a separate unit 

with a separate date for commencement of commercial operation as 

defined in paragraph (1) or (2) of this definition as 

appropriate.

Common designated representative means, with regard to a 

control period in a given year, a designated representative 

where, as of April 1 immediately after the allowance transfer 

deadline for such control period, the same natural person is 

authorized under §§ 97.813(a) and 97.815(a) as the designated 

representative for a group of one or more base CSAPR NOX Ozone 

Season Group 2 sources and units located in a State (and Indian 

country within the borders of such State).

Common designated representative’s assurance level means, 

with regard to a specific common designated representative and a 

State (and Indian country within the borders of such State) and 

control period in a given year for which the State assurance 

level is exceeded as described in § 97.806(c)(2)(iii), the 

common designated representative’s share of the State NOX Ozone 

Season Group 2 trading budget with the variability limit for the 

State for such control period.
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Common designated representative’s share means, with regard 

to a specific common designated representative for a control 

period in a given year:

(1) With regard to a total amount of NOX emissions from all 

base CSAPR NOX Ozone Season Group 2 units in a State (and Indian 

country within the borders of such State) during such control 

period, the total tonnage of NOX emissions during such control 

period from a group of one or more base CSAPR NOX Ozone Season 

Group 2 units located in such State (and such Indian country) 

and having the common designated representative for such control 

period;

(2) With regard to a State NOX Ozone Season Group 2 trading 

budget with the variability limit for such control period, the 

amount (rounded to the nearest allowance) equal to the sum of 

the total amount of CSAPR NOX Ozone Season Group 2 allowances 

allocated for such control period to a group of one or more base 

CSAPR NOX Ozone Season Group 2 units located in the State (and 

Indian country within the borders of such State) and having the 

common designated representative for such control period and the 

total amount of CSAPR NOX Ozone Season Group 2 allowances 

purchased by an owner or operator of such base CSAPR NOX Ozone 

Season Group 2 units in an auction for such control period and 

submitted by the State or the permitting authority to the 
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Administrator for recordation in the compliance accounts for 

such base CSAPR NOX Ozone Season Group 2 units in accordance with 

the CSAPR NOX Ozone Season Group 2 allowance auction provisions 

in a SIP revision approved by the Administrator under 

§ 52.38(b)(6), (8), or (9) of this chapter, multiplied by the 

sum of the State NOX Ozone Season Group 2 trading budget under 

§ 97.810(a) and the State’s variability limit under § 97.810(b) 

for such control period and divided by the greater of such State 

NOX Ozone Season Group 2 trading budget or the sum of all amounts 

of CSAPR NOX Ozone Season Group 2 allowances for such control 

period treated for purposes of this definition as having been 

allocated to or purchased in the State’s auction for all such 

base CSAPR NOX Ozone Season Group 2 units, provided that—

(i) The allocations of CSAPR NOX Ozone Season Group 2 

allowances for any control period taken into account for 

purposes of this definition exclude any CSAPR NOX Ozone Season 

Group 2 allowances allocated for such control period under 

§ 97.526(c)(1) or (3), or under § 97.526(c)(4) or (5) pursuant 

to an exception under § 97.526(c)(1) or (3);

(ii) In the case of the base CSAPR NOX Ozone Season Group 2 

units at a base CSAPR NOX Ozone Season Group 2 source in a State 

with regard to which CSAPR NOX Ozone Season Group 2 allowances 

have been allocated under § 97.526(c)(2) for a given control 
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period, the units at each such source will be treated, solely 

for purposes of this definition, as having been allocated under 

§ 97.526(c)(2), or under § 97.526(c)(4) or (5) pursuant to an 

exception under § 97.526(c)(2), an amount of CSAPR NOX Ozone 

Season Group 2 allowances for such control period equal to the 

sum of the total amount of CSAPR NOX Ozone Season Group 1 

allowances allocated for such control period to such units and 

the total amount of CSAPR NOX Ozone Season Group 1 allowances 

purchased by an owner or operator of such units in an auction 

for such control period and submitted by the State or the 

permitting authority to the Administrator for recordation in the 

compliance account for such source in accordance with the CSAPR 

NOX Ozone Season Group 1 allowance auction provisions in a SIP 

revision approved by the Administrator under § 52.38(b)(4) or 

(5) of this chapter, divided by the conversion factor determined 

under § 97.526(c)(2)(ii) with regard to the State’s SIP revision 

under § 52.38(b)(6) of this chapter, and rounded up to the 

nearest whole allowance; and

(iii) In the case of a base CSAPR NOX Ozone Season Group 2 

unit that operates during, but has no amount of CSAPR NOX Ozone 

Season Group 2 allowances allocated under §§ 97.811 and 97.812 

for, such control period, the unit shall be treated, solely for 

purposes of this definition, as being allocated an amount 
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(rounded to the nearest allowance) of CSAPR NOX Ozone Season 

Group 2 allowances for such control period equal to the unit’s 

allowable NOX emission rate applicable to such control period, 

multiplied by a capacity factor of 0.92 (if the unit is a boiler 

combusting any amount of coal or coal-derived fuel during such 

control period), 0.32 (if the unit is a simple combustion 

turbine during such control period), 0.71 (if the unit is a 

combined cycle turbine during such control period), 0.73 (if the 

unit is an integrated coal gasification combined cycle unit 

during such control period), or 0.44 (for any other unit), 

multiplied by the unit’s maximum hourly load as reported in 

accordance with this subpart and by 3,672 hours/control period, 

and divided by 2,000 lb/ton.

Common stack means a single flue through which emissions 

from 2 or more units are exhausted.

Compliance account means an Allowance Management System 

account, established by the Administrator for a CSAPR NOX Ozone 

Season Group 2 source under this subpart, in which any CSAPR NOX

Ozone Season Group 2 allowance allocations to the CSAPR NOX Ozone 

Season Group 2 units at the source are recorded and in which are 

held any CSAPR NOX Ozone Season Group 2 allowances available for 

use for a control period in a given year in complying with the 
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source’s CSAPR NOX Ozone Season Group 2 emissions limitation in 

accordance with §§ 97.806 and 97.824.

Continuous emission monitoring system or CEMS means the 

equipment required under this subpart to sample, analyze, 

measure, and provide, by means of readings recorded at least 

once every 15 minutes and using an automated data acquisition 

and handling system (DAHS), a permanent record of NOX emissions, 

stack gas volumetric flow rate, stack gas moisture content, and 

O2 or CO2 concentration (as applicable), in a manner consistent 

with part 75 of this chapter and §§ 97.830 through 97.835. The 

following systems are the principal types of continuous emission 

monitoring systems:

(1) A flow monitoring system, consisting of a stack flow 

rate monitor and an automated data acquisition and handling 

system and providing a permanent, continuous record of stack gas 

volumetric flow rate, in standard cubic feet per hour (scfh);

(2) A NOX concentration monitoring system, consisting of a 

NOX pollutant concentration monitor and an automated data 

acquisition and handling system and providing a permanent, 

continuous record of NOX emissions, in parts per million (ppm);

(3) A NOX emission rate (or NOX-diluent) monitoring system, 

consisting of a NOX pollutant concentration monitor, a diluent 

gas (CO2 or O2) monitor, and an automated data acquisition and 
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handling system and providing a permanent, continuous record of 

NOX concentration, in parts per million (ppm), diluent gas 

concentration, in percent CO2 or O2, and NOX emission rate, in 

pounds per million British thermal units (lb/mmBtu);

(4) A moisture monitoring system, as defined in 

§ 75.11(b)(2) of this chapter and providing a permanent, 

continuous record of the stack gas moisture content, in percent 

H2O;

(5) A CO2 monitoring system, consisting of a CO2 pollutant 

concentration monitor (or an O2 monitor plus suitable 

mathematical equations from which the CO2 concentration is 

derived) and an automated data acquisition and handling system 

and providing a permanent, continuous record of CO2 emissions, in 

percent CO2; and

(6) An O2 monitoring system, consisting of an O2

concentration monitor and an automated data acquisition and 

handling system and providing a permanent, continuous record of 

O2, in percent O2.

Control period means the period starting May 1 of a 

calendar year, except as provided in § 97.806(c)(3), and ending 

on September 30 of the same year, inclusive.

CSAPR NOX Annual Trading Program means a multi-state NOX air 

pollution control and emission reduction program established in 
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accordance with subpart AAAAA of this part and § 52.38(a) of 

this chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under § 52.38(a)(3) or 

(4) of this chapter or that is established in a SIP revision 

approved by the Administrator under § 52.38(a)(5) of this 

chapter), as a means of mitigating interstate transport of fine 

particulates and NOX.

CSAPR NOX Ozone Season Group 1 allowance means a limited 

authorization issued and allocated or auctioned by the 

Administrator under subpart BBBBB of this part, or by a State or 

permitting authority under a SIP revision approved by the 

Administrator under § 52.38(b)(3), (4), or (5) of this chapter, 

to emit one ton of NOX during a control period of the specified 

calendar year for which the authorization is allocated or 

auctioned or of any calendar year thereafter under the CSAPR NOX

Ozone Season Group 1 Trading Program.

CSAPR NOX Ozone Season Group 1 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with subpart BBBBB of this 

part and § 52.38(b)(1), (2)(i) and (ii), (3) through (5), and 

(10) through (12) of this chapter (including such a program that 

is revised in a SIP revision approved by the Administrator under 

§ 52.38(b)(3) or (4) of this chapter or that is established in a 
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SIP revision approved by the Administrator under § 52.38(b)(5) 

of this chapter), as a means of mitigating interstate transport 

of ozone and NOX.

CSAPR NOX Ozone Season Group 2 allowance means a limited 

authorization issued and allocated or auctioned by the 

Administrator under this subpart or § 97.526(c), or by a State 

or permitting authority under a SIP revision approved by the 

Administrator under § 52.38(b)(6), (7), (8), or (9) of this 

chapter, to emit one ton of NOX during a control period of the 

specified calendar year for which the authorization is allocated 

or auctioned or of any calendar year thereafter under the CSAPR 

NOX Ozone Season Group 2 Trading Program.

CSAPR NOX Ozone Season Group 2 allowance deduction or deduct 

CSAPR NOX Ozone Season Group 2 allowances means the permanent 

withdrawal of CSAPR NOX Ozone Season Group 2 allowances by the 

Administrator from a compliance account (e.g., in order to 

account for compliance with the CSAPR NOX Ozone Season Group 2 

emissions limitation) or from an assurance account (e.g., in 

order to account for compliance with the assurance provisions 

under §§ 97.806 and 97.825).

CSAPR NOX Ozone Season Group 2 allowances held or hold CSAPR 

NOX Ozone Season Group 2 allowances means the CSAPR NOX Ozone 

Season Group 2 allowances treated as included in an Allowance 
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Management System account as of a specified point in time 

because at that time they:

(1) Have been recorded by the Administrator in the account 

or transferred into the account by a correctly submitted, but 

not yet recorded, CSAPR NOX Ozone Season Group 2 allowance 

transfer in accordance with this subpart; and

(2) Have not been transferred out of the account by a 

correctly submitted, but not yet recorded, CSAPR NOX Ozone Season 

Group 2 allowance transfer in accordance with this subpart.

CSAPR NOX Ozone Season Group 2 emissions limitation means, 

for a CSAPR NOX Ozone Season Group 2 source, the tonnage of NOX

emissions authorized in a control period in a given year by the 

CSAPR NOX Ozone Season Group 2 allowances available for deduction 

for the source under § 97.824(a) for such control period.

CSAPR NOX Ozone Season Group 2 source means a source that 

includes one or more CSAPR NOX Ozone Season Group 2 units.

CSAPR NOX Ozone Season Group 2 Trading Program means a 

multi-state NOX air pollution control and emission reduction 

program established in accordance with this subpart and 

§ 52.38(b)(1), (2)(i) and (iii), (6) through (11), and (13) of 

this chapter (including such a program that is revised in a SIP 

revision approved by the Administrator under § 52.38(b)(7) or 

(8) of this chapter or that is established in a SIP revision 
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approved by the Administrator under § 52.38(b)(6) or (9) of this 

chapter), as a means of mitigating interstate transport of ozone 

and NOX.

CSAPR NOX Ozone Season Group 2 unit means a unit that is 

subject to the CSAPR NOX Ozone Season Group 2 Trading Program.

CSAPR SO2 Group 1 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart CCCCC of this part and § 52.39(a), 

(b), (d) through (f), and (j) through (l) of this chapter 

(including such a program that is revised in a SIP revision 

approved by the Administrator under § 52.39(d) or (e) of this 

chapter or that is established in a SIP revision approved by the 

Administrator under § 52.39(f) of this chapter), as a means of 

mitigating interstate transport of fine particulates and SO2.

CSAPR SO2 Group 2 Trading Program means a multi-state SO2

air pollution control and emission reduction program established 

in accordance with subpart DDDDD of this part and § 52.39(a), 

(c), (g) through (k), and (m) of this chapter (including such a 

program that is revised in a SIP revision approved by the 

Administrator under § 52.39(g) or (h) of this chapter or that is 

established in a SIP revision approved by the Administrator 

under § 52.39(i) of this chapter), as a means of mitigating 

interstate transport of fine particulates and SO2.
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Designated representative means, for a CSAPR NOX Ozone 

Season Group 2 source and each CSAPR NOX Ozone Season Group 2 

unit at the source, the natural person who is authorized by the 

owners and operators of the source and all such units at the 

source, in accordance with this subpart, to represent and 

legally bind each owner and operator in matters pertaining to 

the CSAPR NOX Ozone Season Group 2 Trading Program. If the CSAPR 

NOX Ozone Season Group 2 source is also subject to the Acid Rain 

Program, CSAPR NOX Annual Trading Program, CSAPR SO2 Group 1 

Trading Program, or CSAPR SO2 Group 2 Trading Program, then this 

natural person shall be the same natural person as the 

designated representative as defined in the respective program.

Emissions means air pollutants exhausted from a unit or 

source into the atmosphere, as measured, recorded, and reported 

to the Administrator by the designated representative, and as 

modified by the Administrator:

(1) In accordance with this subpart; and

(2) With regard to a period before the unit or source is 

required to measure, record, and report such air pollutants in 

accordance with this subpart, in accordance with part 75 of this 

chapter.

Excess emissions means any ton of emissions from the CSAPR 

NOX Ozone Season Group 2 units at a CSAPR NOX Ozone Season Group 
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2 source during a control period in a given year that exceeds 

the CSAPR NOX Ozone Season Group 2 emissions limitation for the 

source for such control period.

Fossil fuel means—

(1) Natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material; or

(2) For purposes of applying the limitation on “average 

annual fuel consumption of fossil fuel” in § 97.804(b)(2)(i)(B) 

and (ii), natural gas, petroleum, coal, or any form of solid, 

liquid, or gaseous fuel derived from such material for the 

purpose of creating useful heat.

Fossil-fuel-fired means, with regard to a unit, combusting 

any amount of fossil fuel in 2005 or any calendar year 

thereafter.

General account means an Allowance Management System 

account, established under this subpart, that is not a 

compliance account or an assurance account.

Generator means a device that produces electricity.

Heat input means, for a unit for a specified period of unit 

operating time, the product (in mmBtu) of the gross calorific 

value of the fuel (in mmBtu/lb) fed into the unit multiplied by 

the fuel feed rate (in lb of fuel/time) and unit operating time, 

as measured, recorded, and reported to the Administrator by the 
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designated representative and as modified by the Administrator 

in accordance with this subpart and excluding the heat derived 

from preheated combustion air, recirculated flue gases, or 

exhaust.

Heat input rate means, for a unit, the quotient (in 

mmBtu/hr) of the amount of heat input for a specified period of 

unit operating time (in mmBtu) divided by unit operating time 

(in hr) or, for a unit and a specific fuel, the amount of heat 

input attributed to the fuel (in mmBtu) divided by the unit 

operating time (in hr) during which the unit combusts the fuel.

Heat rate means, for a unit, the quotient (in mmBtu/unit of 

load) of the unit’s maximum design heat input rate (in Btu/hr) 

divided by the product of 1,000,000 Btu/mmBtu and the unit’s 

maximum hourly load.

Indian country means “Indian country” as defined in 18 

U.S.C. 1151.

Life-of-the-unit, firm power contractual arrangement means 

a unit participation power sales agreement under which a utility 

or industrial customer reserves, or is entitled to receive, a 

specified amount or percentage of nameplate capacity and 

associated energy generated by any specified unit and pays its 

proportional amount of such unit’s total costs, pursuant to a 

contract:
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(1) For the life of the unit;

(2) For a cumulative term of no less than 30 years, 

including contracts that permit an election for early 

termination; or

(3) For a period no less than 25 years or 70 percent of the 

economic useful life of the unit determined as of the time the 

unit is built, with option rights to purchase or release some 

portion of the nameplate capacity and associated energy 

generated by the unit at the end of the period.

Maximum design heat input rate means, for a unit, the 

maximum amount of fuel per hour (in Btu/hr) that the unit is 

capable of combusting on a steady state basis as of the initial 

installation of the unit as specified by the manufacturer of the 

unit.

Monitoring system means any monitoring system that meets 

the requirements of this subpart, including a continuous 

emission monitoring system, an alternative monitoring system, or 

an excepted monitoring system under part 75 of this chapter.

Nameplate capacity means, starting from the initial 

installation of a generator, the maximum electrical generating 

output (in MWe, rounded to the nearest tenth) that the generator 

is capable of producing on a steady state basis and during 

continuous operation (when not restricted by seasonal or other 
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deratings) as of such installation as specified by the 

manufacturer of the generator or, starting from the completion 

of any subsequent physical change in the generator resulting in 

an increase in the maximum electrical generating output that the 

generator is capable of producing on a steady state basis and 

during continuous operation (when not restricted by seasonal or 

other deratings), such increased maximum amount (in MWe, rounded 

to the nearest tenth) as of such completion as specified by the 

person conducting the physical change.

Natural gas means “natural gas” as defined in § 72.2 of 

this chapter.

Newly affected CSAPR NOX Ozone Season Group 2 unit means a 

unit that was not a CSAPR NOX Ozone Season Group 2 unit when it 

began operating but that thereafter becomes a CSAPR NOX Ozone 

Season Group 2 unit.

Operate or operation means, with regard to a unit, to 

combust fuel.

Operator means, for a CSAPR NOX Ozone Season Group 2 source 

or a CSAPR NOX Ozone Season Group 2 unit at a source 

respectively, any person who operates, controls, or supervises a 

CSAPR NOX Ozone Season Group 2 unit at the source or the CSAPR 

NOX Ozone Season Group 2 unit and shall include, but not be 
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limited to, any holding company, utility system, or plant 

manager of such source or unit.

Owner means, for a CSAPR NOX Ozone Season Group 2 source or 

a CSAPR NOX Ozone Season Group 2 unit at a source respectively, 

any of the following persons:

(1) Any holder of any portion of the legal or equitable 

title in a CSAPR NOX Ozone Season Group 2 unit at the source or 

the CSAPR NOX Ozone Season Group 2 unit;

(2) Any holder of a leasehold interest in a CSAPR NOX Ozone 

Season Group 2 unit at the source or the CSAPR NOX Ozone Season 

Group 2 unit, provided that, unless expressly provided for in a 

leasehold agreement, “owner” shall not include a passive lessor, 

or a person who has an equitable interest through such lessor, 

whose rental payments are not based (either directly or 

indirectly) on the revenues or income from such CSAPR NOX Ozone 

Season Group 2 unit; and

(3) Any purchaser of power from a CSAPR NOX Ozone Season 

Group 2 unit at the source or the CSAPR NOX Ozone Season Group 2 

unit under a life-of-the-unit, firm power contractual 

arrangement.

Permanently retired means, with regard to a unit, a unit 

that is unavailable for service and that the unit’s owners and 

operators do not expect to return to service in the future.
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Permitting authority means “permitting authority” as 

defined in §§ 70.2 and 71.2 of this chapter.

Potential electrical output capacity means, for a unit (in 

MWh/yr), 33 percent of the unit’s maximum design heat input rate 

(in Btu/hr), divided by 3,413 Btu/kWh, divided by 1,000 kWh/MWh, 

and multiplied by 8,760 hr/yr.

Receive or receipt of means, when referring to the 

Administrator, to come into possession of a document, 

information, or correspondence (whether sent in hard copy or by 

authorized electronic transmission), as indicated in an official 

log, or by a notation made on the document, information, or 

correspondence, by the Administrator in the regular course of 

business.

Recordation, record, or recorded means, with regard to 

CSAPR NOX Ozone Season Group 2 allowances, the moving of CSAPR 

NOX Ozone Season Group 2 allowances by the Administrator into, 

out of, or between Allowance Management System accounts, for 

purposes of allocation, auction, transfer, or deduction.

Reference method means any direct test method of sampling 

and analyzing for an air pollutant as specified in § 75.22 of 

this chapter.

Replacement, replace, or replaced means, with regard to a 

unit, the demolishing of a unit, or the permanent retirement and 
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permanent disabling of a unit, and the construction of another 

unit (the replacement unit) to be used instead of the demolished 

or retired unit (the replaced unit).

Sequential use of energy means:

(1) The use of reject heat from electricity production in a 

useful thermal energy application or process; or

(2) The use of reject heat from a useful thermal energy 

application or process in electricity production.

Serial number means, for a CSAPR NOX Ozone Season Group 2 

allowance, the unique identification number assigned to each 

CSAPR NOX Ozone Season Group 2 allowance by the Administrator.

Solid waste incineration unit means a stationary, fossilfuel-fired boiler or stationary, fossil-fuel-fired combustion 

turbine that is a “solid waste incineration unit” as defined in 

section 129(g)(1) of the Clean Air Act.

Source means all buildings, structures, or installations 

located in one or more contiguous or adjacent properties under 

common control of the same person or persons. This definition 

does not change or otherwise affect the definition of “major 

source”, “stationary source”, or “source” as set forth and 

implemented in a title V operating permit program or any other 

program under the Clean Air Act.
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State means one of the States that is subject to the CSAPR 

NOX Ozone Season Group 2 Trading Program pursuant to 

§ 52.38(b)(1), (2)(i) and (iii), (6) through (11), and (13) of 

this chapter.

Submit or serve means to send or transmit a document, 

information, or correspondence to the person specified in 

accordance with the applicable regulation:

(1) In person;

(2) By United States Postal Service; or

(3) By other means of dispatch or transmission and 

delivery;

(4) Provided that compliance with any “submission” or 

“service” deadline shall be determined by the date of dispatch, 

transmission, or mailing and not the date of receipt.

Topping-cycle unit means a unit in which the energy input 

to the unit is first used to produce useful power, including 

electricity, where at least some of the reject heat from the 

electricity production is then used to provide useful thermal 

energy.

Total energy input means, for a unit, total energy of all 

forms supplied to the unit, excluding energy produced by the 

unit. Each form of energy supplied shall be measured by the 
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lower heating value of that form of energy calculated as 

follows:

LHV = HHV − 10.55 (W + 9H)

where:

LHV = lower heating value of the form of energy in Btu/lb,

HHV = higher heating value of the form of energy in Btu/lb,

W = weight % of moisture in the form of energy, and

H = weight % of hydrogen in the form of energy.

Total energy output means, for a unit, the sum of useful 

power and useful thermal energy produced by the unit.

Unit means a stationary, fossil-fuel-fired boiler, 

stationary, fossil-fuel-fired combustion turbine, or other 

stationary, fossil-fuel-fired combustion device. A unit that 

undergoes a physical change or is moved to a different location 

or source shall continue to be treated as the same unit. A unit 

(the replaced unit) that is replaced by another unit (the 

replacement unit) at the same or a different source shall 

continue to be treated as the same unit, and the replacement 

unit shall be treated as a separate unit.

Unit operating day means, with regard to a unit, a calendar 

day in which the unit combusts any fuel.

Unit operating hour or hour of unit operation means, with 

regard to a unit, an hour in which the unit combusts any fuel.
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Useful power means, with regard to a unit, electricity or 

mechanical energy that the unit makes available for use, 

excluding any such energy used in the power production process 

(which process includes, but is not limited to, any on-site 

processing or treatment of fuel combusted at the unit and any 

on-site emission controls).

Useful thermal energy means thermal energy that is:

(1) Made available to an industrial or commercial process 

(not a power production process), excluding any heat contained 

in condensate return or makeup water;

(2) Used in a heating application (e.g., space heating or 

domestic hot water heating); or

(3) Used in a space cooling application (i.e., in an 

absorption chiller).

Utility power distribution system means the portion of an 

electricity grid owned or operated by a utility and dedicated to 

delivering electricity to customers.

§ 97.803 Measurements, abbreviations, and acronyms.

Measurements, abbreviations, and acronyms used in this 

subpart are defined as follows:

Btu—British thermal unit

CO2—carbon dioxide

CSAPR—Cross-State Air Pollution Rule
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H2O—water

hr—hour

kWh—kilowatt-hour

lb—pound

mmBtu—million Btu

MWe—megawatt electrical

MWh—megawatt-hour

NOX—nitrogen oxides

O2—oxygen

ppm—parts per million

scfh—standard cubic feet per hour

SIP—State implementation plan

SO2—sulfur dioxide

TR—Transport Rule

yr—year

§ 97.804 Applicability.

(a) Except as provided in paragraph (b) of this section:

(1) The following units in a State (and Indian country 

within the borders of such State) shall be CSAPR NOX Ozone Season 

Group 2 units, and any source that includes one or more such 

units shall be a CSAPR NOX Ozone Season Group 2 source, subject 

to the requirements of this subpart: any stationary, fossilfuel-fired boiler or stationary, fossil-fuel-fired combustion 
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turbine serving at any time, on or after January 1, 2005, a 

generator with nameplate capacity of more than 25 MWe producing 

electricity for sale.

(2) If a stationary boiler or stationary combustion turbine 

that, under paragraph (a)(1) of this section, is not a CSAPR NOX

Ozone Season Group 2 unit begins to combust fossil fuel or to 

serve a generator with nameplate capacity of more than 25 MWe 

producing electricity for sale, the unit shall become a CSAPR NOX

Ozone Season Group 2 unit as provided in paragraph (a)(1) of 

this section on the first date on which it both combusts fossil 

fuel and serves such generator.

(b) Any unit in a State (and Indian country within the 

borders of such State) that otherwise is a CSAPR NOX Ozone Season 

Group 2 unit under paragraph (a) of this section and that meets 

the requirements set forth in paragraph (b)(1)(i) or (2)(i) of 

this section shall not be a CSAPR NOX Ozone Season Group 2 unit:

(1)(i) Any unit:

(A) Qualifying as a cogeneration unit throughout the later 

of 2005 or the 12-month period starting on the date the unit 

first produces electricity and continuing to qualify as a 

cogeneration unit throughout each calendar year ending after the 

later of 2005 or such 12-month period; and
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(B) Not supplying in 2005 or any calendar year thereafter 

more than one-third of the unit’s potential electrical output 

capacity or 219,000 MWh, whichever is greater, to any utility 

power distribution system for sale.

(ii) If, after qualifying under paragraph (b)(1)(i) of this 

section as not being a CSAPR NOX Ozone Season Group 2 unit, a 

unit subsequently no longer meets all the requirements of 

paragraph (b)(1)(i) of this section, the unit shall become a 

CSAPR NOX Ozone Season Group 2 unit starting on the earlier of 

January 1 after the first calendar year during which the unit 

first no longer qualifies as a cogeneration unit or January 1 

after the first calendar year during which the unit no longer 

meets the requirements of paragraph (b)(1)(i)(B) of this 

section. The unit shall thereafter continue to be a CSAPR NOX

Ozone Season Group 2 unit.

(2)(i) Any unit:

(A) Qualifying as a solid waste incineration unit 

throughout the later of 2005 or the 12-month period starting on 

the date the unit first produces electricity and continuing to 

qualify as a solid waste incineration unit throughout each 

calendar year ending after the later of 2005 or such 12-month 

period; and
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(B) With an average annual fuel consumption of fossil fuel 

for the first 3 consecutive calendar years of operation starting 

no earlier than 2005 of less than 20 percent (on a Btu basis) 

and an average annual fuel consumption of fossil fuel for any 3 

consecutive calendar years thereafter of less than 20 percent 

(on a Btu basis).

(ii) If, after qualifying under paragraph (b)(2)(i) of this 

section as not being a CSAPR NOX Ozone Season Group 2 unit, a 

unit subsequently no longer meets all the requirements of 

paragraph (b)(2)(i) of this section, the unit shall become a 

CSAPR NOX Ozone Season Group 2 unit starting on the earlier of 

January 1 after the first calendar year during which the unit 

first no longer qualifies as a solid waste incineration unit or 

January 1 after the first 3 consecutive calendar years after 

2005 for which the unit has an average annual fuel consumption 

of fossil fuel of 20 percent or more. The unit shall thereafter 

continue to be a CSAPR NOX Ozone Season Group 2 unit.

(c) A certifying official of an owner or operator of any 

unit or other equipment may submit a petition (including any 

supporting documents) to the Administrator at any time for a 

determination concerning the applicability, under paragraphs (a) 

and (b) of this section or a SIP revision approved under 

§ 52.38(b)(6), (8), or (9) of this chapter, of the CSAPR NOX
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Ozone Season Group 2 Trading Program to the unit or other 

equipment.

(1) Petition content. The petition shall be in writing and 

include the identification of the unit or other equipment and 

the relevant facts about the unit or other equipment. The 

petition and any other documents provided to the Administrator 

in connection with the petition shall include the following 

certification statement, signed by the certifying official: “I 

am authorized to make this submission on behalf of the owners 

and operators of the unit or other equipment for which the 

submission is made. I certify under penalty of law that I have 

personally examined, and am familiar with, the statements and 

information submitted in this document and all its attachments. 

Based on my inquiry of those individuals with primary 

responsibility for obtaining the information, I certify that the 

statements and information are to the best of my knowledge and 

belief true, accurate, and complete. I am aware that there are 

significant penalties for submitting false statements and 

information or omitting required statements and information, 

including the possibility of fine or imprisonment.”

(2) Response. The Administrator will issue a written 

response to the petition and may request supplemental 

information determined by the Administrator to be relevant to 
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such petition. The Administrator’s determination concerning the 

applicability, under paragraphs (a) and (b) of this section, of 

the CSAPR NOX Ozone Season Group 2 Trading Program to the unit or 

other equipment shall be binding on any State or permitting 

authority unless the Administrator determines that the petition 

or other documents or information provided in connection with 

the petition contained significant, relevant errors or 

omissions.

§ 97.805 Retired unit exemption.

(a)(1) Any CSAPR NOX Ozone Season Group 2 unit that is 

permanently retired shall be exempt from § 97.806(b) and (c)(1), 

§ 97.824, and §§ 97.830 through 97.835.

(2) The exemption under paragraph (a)(1) of this section 

shall become effective the day on which the CSAPR NOX Ozone

Season Group 2 unit is permanently retired. Within 30 days of 

the unit’s permanent retirement, the designated representative 

shall submit a statement to the Administrator. The statement 

shall state, in a format prescribed by the Administrator, that 

the unit was permanently retired on a specified date and will 

comply with the requirements of paragraph (b) of this section.

(b) Special provisions. (1) A unit exempt under paragraph 

(a) of this section shall not emit any NOX, starting on the date 

that the exemption takes effect.
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(2) For a period of 5 years from the date the records are 

created, the owners and operators of a unit exempt under 

paragraph (a) of this section shall retain, at the source that 

includes the unit, records demonstrating that the unit is 

permanently retired. The 5-year period for keeping records may 

be extended for cause, at any time before the end of the period, 

in writing by the Administrator. The owners and operators bear 

the burden of proof that the unit is permanently retired.

(3) The owners and operators and, to the extent applicable, 

the designated representative of a unit exempt under paragraph 

(a) of this section shall comply with the requirements of the 

CSAPR NOX Ozone Season Group 2 Trading Program concerning all 

periods for which the exemption is not in effect, even if such 

requirements arise, or must be complied with, after the 

exemption takes effect.

(4) A unit exempt under paragraph (a) of this section shall 

lose its exemption on the first date on which the unit resumes 

operation. Such unit shall be treated, for purposes of applying 

allocation, monitoring, reporting, and recordkeeping 

requirements under this subpart, as a unit that commences 

commercial operation on the first date on which the unit resumes 

operation.

§ 97.806 Standard requirements.
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(a) Designated representative requirements. The owners and 

operators shall comply with the requirement to have a designated 

representative, and may have an alternate designated 

representative, in accordance with §§ 97.813 through 97.818.

(b) Emissions monitoring, reporting, and recordkeeping 

requirements. (1) The owners and operators, and the designated 

representative, of each CSAPR NOX Ozone Season Group 2 source and 

each CSAPR NOX Ozone Season Group 2 unit at the source shall 

comply with the monitoring, reporting, and recordkeeping 

requirements of §§ 97.830 through 97.835.

(2) The emissions data determined in accordance with 

§§ 97.830 through 97.835 shall be used to calculate allocations 

of CSAPR NOX Ozone Season Group 2 allowances under 

§§ 97.811(a)(2) and (b) and 97.812 and to determine compliance 

with the CSAPR NOX Ozone Season Group 2 emissions limitation and 

assurance provisions under paragraph (c) of this section, 

provided that, for each monitoring location from which mass 

emissions are reported, the mass emissions amount used in 

calculating such allocations and determining such compliance 

shall be the mass emissions amount for the monitoring location 

determined in accordance with §§ 97.830 through 97.835 and 

rounded to the nearest ton, with any fraction of a ton less than 

0.50 being deemed to be zero.
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(c) NOX emissions requirements. (1) CSAPR NOX Ozone Season 

Group 2 emissions limitation. (i) As of the allowance transfer 

deadline for a control period in a given year, the owners and 

operators of each CSAPR NOX Ozone Season Group 2 source and each 

CSAPR NOX Ozone Season Group 2 unit at the source shall hold, in 

the source’s compliance account, CSAPR NOX Ozone Season Group 2 

allowances available for deduction for such control period under 

§ 97.824(a) in an amount not less than the tons of total NOX

emissions for such control period from all CSAPR NOX Ozone Season 

Group 2 units at the source.

(ii) If total NOX emissions during a control period in a 

given year from the CSAPR NOX Ozone Season Group 2 units at a 

CSAPR NOX Ozone Season Group 2 source are in excess of the CSAPR 

NOX Ozone Season Group 2 emissions limitation set forth in 

paragraph (c)(1)(i) of this section, then:

(A) The owners and operators of the source and each CSAPR 

NOX Ozone Season Group 2 unit at the source shall hold the CSAPR 

NOX Ozone Season Group 2 allowances required for deduction under 

§ 97.824(d); and

(B) The owners and operators of the source and each CSAPR 

NOX Ozone Season Group 2 unit at the source shall pay any fine, 

penalty, or assessment or comply with any other remedy imposed, 

for the same violations, under the Clean Air Act, and each ton 
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of such excess emissions and each day of such control period 

shall constitute a separate violation of this subpart and the 

Clean Air Act.

(2) CSAPR NOX Ozone Season Group 2 assurance provisions. (i) 

If total NOX emissions during a control period in a given year 

from all base CSAPR NOX Ozone Season Group 2 units at base CSAPR 

NOX Ozone Season Group 2 sources in a State (and Indian country 

within the borders of such State) exceed the State assurance 

level, then the owners and operators of such sources and units 

in each group of one or more sources and units having a common 

designated representative for such control period, where the 

common designated representative’s share of such NOX emissions 

during such control period exceeds the common designated 

representative’s assurance level for the State and such control 

period, shall hold (in the assurance account established for the 

owners and operators of such group) CSAPR NOX Ozone Season Group 

2 allowances available for deduction for such control period 

under § 97.825(a) in an amount equal to two times the product 

(rounded to the nearest whole number), as determined by the 

Administrator in accordance with § 97.825(b), of multiplying—

(A) The quotient of the amount by which the common 

designated representative’s share of such NOX emissions exceeds 

the common designated representative’s assurance level divided 
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by the sum of the amounts, determined for all common designated 

representatives for such sources and units in the State (and 

Indian country within the borders of such State) for such 

control period, by which each common designated representative’s 

share of such NOX emissions exceeds the respective common 

designated representative’s assurance level; and

(B) The amount by which total NOX emissions from all base 

CSAPR NOX Ozone Season Group 2 units at base CSAPR NOX Ozone 

Season Group 2 sources in the State (and Indian country within 

the borders of such State) for such control period exceed the 

State assurance level.

(ii) The owners and operators shall hold the CSAPR NOX Ozone 

Season Group 2 allowances required under paragraph (c)(2)(i) of 

this section, as of midnight of November 1 (if it is a business 

day), or midnight of the first business day thereafter (if 

November 1 is not a business day), immediately after the year of 

such control period.

(iii) Total NOX emissions from all base CSAPR NOX Ozone 

Season Group 2 units at base CSAPR NOX Ozone Season Group 2 

sources in a State (and Indian country within the borders of 

such State) during a control period in a given year exceed the 

State assurance level if such total NOX emissions exceed the sum, 

for such control period, of the State NOX Ozone Season Group 2 
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trading budget under § 97.810(a) and the State’s variability 

limit under § 97.810(b).

(iv) It shall not be a violation of this subpart or of the 

Clean Air Act if total NOX emissions from all base CSAPR NOX

Ozone Season Group 2 units at base CSAPR NOX Ozone Season Group 2 

sources in a State (and Indian country within the borders of 

such State) during a control period exceed the State assurance 

level or if a common designated representative’s share of total 

NOX emissions from the base CSAPR NOX Ozone Season Group 2 units 

at base CSAPR NOX Ozone Season Group 2 sources in a State (and 

Indian country within the borders of such State) during a 

control period exceeds the common designated representative’s 

assurance level.

(v) To the extent the owners and operators fail to hold 

CSAPR NOX Ozone Season Group 2 allowances for a control period in 

a given year in accordance with paragraphs (c)(2)(i) through 

(iii) of this section,

(A) The owners and operators shall pay any fine, penalty, 

or assessment or comply with any other remedy imposed under the 

Clean Air Act; and

(B) Each CSAPR NOX Ozone Season Group 2 allowance that the 

owners and operators fail to hold for such control period in 

accordance with paragraphs (c)(2)(i) through (iii) of this 
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section and each day of such control period shall constitute a 

separate violation of this subpart and the Clean Air Act.

(3) Compliance periods. (i) A CSAPR NOX Ozone Season Group 2 

unit shall be subject to the requirements under paragraph (c)(1) 

of this section for the control period starting on the later of 

May 1, 2017 or the deadline for meeting the unit’s monitor 

certification requirements under § 97.830(b) and for each 

control period thereafter.

(ii) A base CSAPR NOX Ozone Season Group 2 unit shall be 

subject to the requirements under paragraph (c)(2) of this 

section for the control period starting on the later of May 1, 

2017 or the deadline for meeting the unit’s monitor 

certification requirements under § 97.830(b) and for each 

control period thereafter.

(4) Vintage of CSAPR NOX Ozone Season Group 2 allowances 

held for compliance. (i) A CSAPR NOX Ozone Season Group 2 

allowance held for compliance with the requirements under 

paragraph (c)(1)(i) of this section for a control period in a 

given year must be a CSAPR NOX Ozone Season Group 2 allowance 

that was allocated or auctioned for such control period or a 

control period in a prior year.

(ii) A CSAPR NOX Ozone Season Group 2 allowance held for 

compliance with the requirements under paragraphs (c)(1)(ii)(A) 
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and (2)(i) through (iii) of this section for a control period in 

a given year must be a CSAPR NOX Ozone Season Group 2 allowance 

that was allocated or auctioned for a control period in a prior 

year or the control period in the given year or in the 

immediately following year.

(5) Allowance Management System requirements. Each CSAPR NOX

Ozone Season Group 2 allowance shall be held in, deducted from, 

or transferred into, out of, or between Allowance Management 

System accounts in accordance with this subpart.

(6) Limited authorization. A CSAPR NOX Ozone Season Group 2 

allowance is a limited authorization to emit one ton of NOX

during the control period in one year. Such authorization is 

limited in its use and duration as follows:

(i) Such authorization shall only be used in accordance 

with the CSAPR NOX Ozone Season Group 2 Trading Program; and

(ii) Notwithstanding any other provision of this subpart, 

the Administrator has the authority to terminate or limit the 

use and duration of such authorization to the extent the 

Administrator determines is necessary or appropriate to 

implement any provision of the Clean Air Act.

(7) Property right. A CSAPR NOX Ozone Season Group 2 

allowance does not constitute a property right.
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(d) Title V permit requirements. (1) No title V permit 

revision shall be required for any allocation, holding, 

deduction, or transfer of CSAPR NOX Ozone Season Group 2 

allowances in accordance with this subpart.

(2) A description of whether a unit is required to monitor 

and report NOX emissions using a continuous emission monitoring 

system (under subpart H of part 75 of this chapter), an excepted 

monitoring system (under appendices D and E to part 75 of this 

chapter), a low mass emissions excepted monitoring methodology 

(under § 75.19 of this chapter), or an alternative monitoring 

system (under subpart E of part 75 of this chapter) in 

accordance with §§ 97.830 through 97.835 may be added to, or 

changed in, a title V permit using minor permit modification 

procedures in accordance with §§ 70.7(e)(2) and 71.7(e)(1) of 

this chapter, provided that the requirements applicable to the 

described monitoring and reporting (as added or changed, 

respectively) are already incorporated in such permit. This 

paragraph explicitly provides that the addition of, or change 

to, a unit’s description as described in the prior sentence is 

eligible for minor permit modification procedures in accordance 

with §§ 70.7(e)(2)(i)(B) and 71.7(e)(1)(i)(B) of this chapter.

(e) Additional recordkeeping and reporting requirements.

(1) Unless otherwise provided, the owners and operators of each 
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CSAPR NOX Ozone Season Group 2 source and each CSAPR NOX Ozone 

Season Group 2 unit at the source shall keep on site at the 

source each of the following documents (in hardcopy or 

electronic format) for a period of 5 years from the date the 

document is created. This period may be extended for cause, at 

any time before the end of 5 years, in writing by the 

Administrator.

(i) The certificate of representation under § 97.816 for 

the designated representative for the source and each CSAPR NOX

Ozone Season Group 2 unit at the source and all documents that 

demonstrate the truth of the statements in the certificate of 

representation; provided that the certificate and documents 

shall be retained on site at the source beyond such 5-year 

period until such certificate of representation and documents 

are superseded because of the submission of a new certificate of 

representation under § 97.816 changing the designated 

representative.

(ii) All emissions monitoring information, in accordance 

with this subpart.

(iii) Copies of all reports, compliance certifications, and 

other submissions and all records made or required under, or to 

demonstrate compliance with the requirements of, the CSAPR NOX

Ozone Season Group 2 Trading Program.
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(2) The designated representative of a CSAPR NOX Ozone 

Season Group 2 source and each CSAPR NOX Ozone Season Group 2 

unit at the source shall make all submissions required under the 

CSAPR NOX Ozone Season Group 2 Trading Program, except as 

provided in § 97.818. This requirement does not change, create 

an exemption from, or otherwise affect the responsible official 

submission requirements under a title V operating permit program 

in parts 70 and 71 of this chapter.

(f) Liability. (1) Any provision of the CSAPR NOX Ozone 

Season Group 2 Trading Program that applies to a CSAPR NOX Ozone 

Season Group 2 source or the designated representative of a 

CSAPR NOX Ozone Season Group 2 source shall also apply to the 

owners and operators of such source and of the CSAPR NOX Ozone 

Season Group 2 units at the source.

(2) Any provision of the CSAPR NOX Ozone Season Group 2 

Trading Program that applies to a CSAPR NOX Ozone Season Group 2 

unit or the designated representative of a CSAPR NOX Ozone Season 

Group 2 unit shall also apply to the owners and operators of 

such unit.

(g) Effect on other authorities. No provision of the CSAPR 

NOX Ozone Season Group 2 Trading Program or exemption under 

§ 97.805 shall be construed as exempting or excluding the owners 

and operators, and the designated representative, of a CSAPR NOX
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Ozone Season Group 2 source or CSAPR NOX Ozone Season Group 2 

unit from compliance with any other provision of the applicable, 

approved State implementation plan, a federally enforceable 

permit, or the Clean Air Act.

§ 97.807 Computation of time.

(a) Unless otherwise stated, any time period scheduled, 

under the CSAPR NOX Ozone Season Group 2 Trading Program, to 

begin on the occurrence of an act or event shall begin on the 

day the act or event occurs.

(b) Unless otherwise stated, any time period scheduled, 

under the CSAPR NOX Ozone Season Group 2 Trading Program, to 

begin before the occurrence of an act or event shall be computed 

so that the period ends the day before the act or event occurs.

(c) Unless otherwise stated, if the final day of any time 

period, under the CSAPR NOX Ozone Season Group 2 Trading Program, 

is not a business day, the time period shall be extended to the 

next business day.

§ 97.808 Administrative appeal procedures.

The administrative appeal procedures for decisions of the 

Administrator under the CSAPR NOX Ozone Season Group 2 Trading 

Program are set forth in part 78 of this chapter.

§ 97.809 [Reserved]
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§ 97.810 State NOX Ozone Season Group 2 trading budgets, new unit 

set-asides, Indian country new unit set-asides, and variability 

limits.

(a) The State NOX Ozone Season Group 2 trading budgets, new 

unit set-asides, and Indian country new unit set-asides for 

allocations of CSAPR NOX Ozone Season Group 2 allowances for the 

control periods in 2017 and thereafter are as follows:

(1) Alabama. (i) The NOX Ozone Season Group 2 trading budget 

is 13,211 tons.

(ii) The new unit set-aside is 255 tons.

(iii) The Indian country new unit set-aside is 13 tons.

(2) Arkansas. (i) The NOX Ozone Season Group 2 trading 

budget for 2017 is 12,048 tons and for 2018 and thereafter is 

9,210 tons.

(ii) The new unit set-aside for 2017 is 240 tons and for 

2018 and thereafter is 185 tons.

(iii) [Reserved]

(3) Georgia. (i) The NOX Ozone Season Group 2 trading budget 

is 8,481 tons.

(ii) The new unit set-aside is 168 tons.

(iii) [Reserved]

(4) Illinois. (i) The NOX Ozone Season Group 2 trading 

budget is 14,601 tons.
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(ii) The new unit set-aside is 302 tons.

(iii) [Reserved]

(5) Indiana. (i) The NOX Ozone Season Group 2 trading budget 

is 23,303 tons.

(ii) The new unit set-aside is 468 tons.

(iii) [Reserved]

(6) Iowa. (i) The NOX Ozone Season Group 2 trading budget is 

11,272 tons.

(ii) The new unit set-aside is 324 tons.

(iii) The Indian country new unit set-aside is 11 tons.

(7) Kansas. (i) The NOX Ozone Season Group 2 trading budget 

is 8,027 tons.

(ii) The new unit set-aside is 148 tons.

(iii) The Indian country new unit set-aside is 8 tons.

(8) Kentucky. (i) The NOX Ozone Season Group 2 trading 

budget is 21,115 tons.

(ii) The new unit set-aside is 426 tons.

(iii) [Reserved]

(9) Louisiana. (i) The NOX Ozone Season Group 2 trading 

budget is 18,639 tons.

(ii) The new unit set-aside is 352 tons.

(iii) The Indian country new unit set-aside is 19 tons.
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(10) Maryland. (i) The NOX Ozone Season Group 2 trading 

budget is 3,828 tons.

(ii) The new unit set-aside is 152 tons.

(iii) [Reserved]

(11) Michigan. (i) The NOX Ozone Season Group 2 trading 

budget is 17,023 tons.

(ii) The new unit set-aside is 665 tons.

(iii) The Indian country new unit set-aside is 17 tons.

(12) Mississippi. (i) The NOX Ozone Season Group 2 trading 

budget is 6,315 tons.

(ii) The new unit set-aside is 120 tons.

(iii) The Indian country new unit set-aside is 6 tons.

(13) Missouri. (i) The NOX Ozone Season Group 2 trading 

budget is 15,780 tons.

(ii) The new unit set-aside is 324 tons.

(iii) [Reserved]

(14) New Jersey. (i) The NOX Ozone Season Group 2 trading 

budget is 2,062 tons.

(ii) The new unit set-aside is 192 tons.

(iii) [Reserved]

(15) New York. (i) The NOX Ozone Season Group 2 trading 

budget is 5,135 tons.

(ii) The new unit set-aside is 252 tons.
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(iii) The Indian country new unit set-aside is 5 tons.

(16) Ohio. (i) The NOX Ozone Season Group 2 trading budget 

is 19,522 tons.

(ii) The new unit set-aside is 401 tons.

(iii) [Reserved]

(17) Oklahoma. (i) The NOX Ozone Season Group 2 trading 

budget is 11,641 tons.

(ii) The new unit set-aside is 221 tons.

(iii) The Indian country new unit set-aside is 12 tons.

(18) Pennsylvania. (i) The NOX Ozone Season Group 2 trading 

budget is 17,952 tons.

(ii) The new unit set-aside is 541 tons.

(iii) [Reserved]

(19) Tennessee. (i) The NOX Ozone Season Group 2 trading 

budget is 7,736 tons.

(ii) The new unit set-aside is 156 tons.

(iii) [Reserved]

(20) Texas. (i) The NOX Ozone Season Group 2 trading budget 

is 52,301 tons.

(ii) The new unit set-aside is 998 tons.

(iii) The Indian country new unit set-aside is 52 tons.

(21) Virginia. (i) The NOX Ozone Season Group 2 trading 

budget is 9,223 tons.
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(ii) The new unit set-aside is 562 tons.

(iii) [Reserved]

(22) West Virginia. (i) The NOX Ozone Season Group 2 trading 

budget is 17,815 tons.

(ii) The new unit set-aside is 356 tons.

(iii) [Reserved]

(23) Wisconsin. (i) The NOX Ozone Season Group 2 trading 

budget is 7,915 tons.

(ii) The new unit set-aside is 151 tons.

(iii) The Indian country new unit set-aside is 8 tons.

(b) The States’ variability limits for the State NOX Ozone 

Season Group 2 trading budgets for the control periods in 2017 

and thereafter are as follows:

(1) The variability limit for Alabama is 2,774 tons.

(2) The variability limit for Arkansas for 2017 is 2,530 

tons and for 2018 and thereafter is 1,934 tons.

(3) The variability limit for Georgia is 1,781 tons.

(4) The variability limit for Illinois is 3,066 tons.

(5) The variability limit for Indiana is 4,894 tons.

(6) The variability limit for Iowa is 2,367 tons.

(7) The variability limit for Kansas is 1,686 tons.

(8) The variability limit for Kentucky is 4,434 tons.

(9) The variability limit for Louisiana is 3,914 tons.
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(10) The variability limit for Maryland is 804 tons.

(11) The variability limit for Michigan is 3,575 tons.

(12) The variability limit for Mississippi is 1,326 tons.

(13) The variability limit for Missouri is 3,314 tons.

(14) The variability limit for New Jersey is 433 tons.

(15) The variability limit for New York is 1,078 tons.

(16) The variability limit for Ohio is 4,100 tons.

(17) The variability limit for Oklahoma is 2,445 tons.

(18) The variability limit for Pennsylvania is 3,770 tons.

(19) The variability limit for Tennessee is 1,625 tons.

(20) The variability limit for Texas is 10,983 tons.

(21) The variability limit for Virginia is 1,937 tons.

(22) The variability limit for West Virginia is 3,741 tons.

(23) The variability limit for Wisconsin is 1,662 tons.

(c) Each State NOX Ozone Season Group 2 trading budget in 

this section includes any tons in a new unit set-aside or Indian 

country new unit set-aside but does not include any tons in a 

variability limit.

§ 97.811 Timing requirements for CSAPR NOX Ozone Season Group 2 

allowance allocations.

(a) Existing units. (1) CSAPR NOX Ozone Season Group 2 

allowances are allocated, for the control periods in 2017 and 

each year thereafter, as provided in a notice of data 
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availability issued by the Administrator. Providing an 

allocation to a unit in such notice does not constitute a 

determination that the unit is a CSAPR NOX Ozone Season Group 2 

unit, and not providing an allocation to a unit in such notice 

does not constitute a determination that the unit is not a CSAPR 

NOX Ozone Season Group 2 unit.

(2) Notwithstanding paragraph (a)(1) of this section, if a 

unit provided an allocation in the notice of data availability 

issued under paragraph (a)(1) of this section does not operate, 

starting after 2016, during the control period in two 

consecutive years, such unit will not be allocated the CSAPR NOX

Ozone Season Group 2 allowances provided in such notice for the 

unit for the control periods in the fifth year after the first 

such year and in each year after that fifth year. All CSAPR NOX

Ozone Season Group 2 allowances that would otherwise have been 

allocated to such unit will be allocated to the new unit setaside for the State where such unit is located and for the 

respective years involved. If such unit resumes operation, the 

Administrator will allocate CSAPR NOX Ozone Season Group 2 

allowances to the unit in accordance with paragraph (b) of this 

section.

(b) New units. (1) New unit set-asides. (i) By June 1, 2017 

and June 1 of each year thereafter, the Administrator will 
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calculate the CSAPR NOX Ozone Season Group 2 allowance allocation 

to each CSAPR NOX Ozone Season Group 2 unit in a State, in 

accordance with § 97.812(a)(2) through (7) and (12), for the 

control period in the year of the applicable calculation 

deadline under this paragraph and will promulgate a notice of 

data availability of the results of the calculations.

(ii) For each notice of data availability required in 

paragraph (b)(1)(i) of this section, the Administrator will 

provide an opportunity for submission of objections to the 

calculations referenced in such notice.

(A) Objections shall be submitted by the deadline specified 

in each notice of data availability required in paragraph 

(b)(1)(i) of this section and shall be limited to addressing 

whether the calculations (including the identification of the 

CSAPR NOX Ozone Season Group 2 units) are in accordance with 

§ 97.812(a)(2) through (7) and (12) and §§ 97.806(b)(2) and 

97.830 through 97.835.

(B) The Administrator will adjust the calculations to the 

extent necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(1)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(1)(i) of 

this section, the Administrator will promulgate a notice of data 
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availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§ 97.812(a)(2) through (7) and (12) and the reasons for 

accepting or rejecting any objections submitted in accordance 

with paragraph (b)(1)(ii)(A) of this section.

(iii) If the new unit set-aside for such control period 

contains any CSAPR NOX Ozone Season Group 2 allowances that have 

not been allocated in the applicable notice of data availability 

required in paragraph (b)(1)(ii) of this section, the 

Administrator will promulgate, by December 15 immediately after 

such notice, a notice of data availability that identifies any 

CSAPR NOX Ozone Season Group 2 units that commenced commercial 

operation during the period starting January 1 of the year 

before the year of such control period and ending November 30 of 

the year of such control period.

(iv) For each notice of data availability required in 

paragraph (b)(1)(iii) of this section, the Administrator will 

provide an opportunity for submission of objections to the 

identification of CSAPR NOX Ozone Season Group 2 units in such 

notice.

(A) Objections shall be submitted by the deadline specified 

in each notice of data availability required in paragraph 

(b)(1)(iii) of this section and shall be limited to addressing 
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whether the identification of CSAPR NOX Ozone Season Group 2 

units in such notice is in accordance with paragraph (b)(1)(iii) 

of this section.

(B) The Administrator will adjust the identification of 

CSAPR NOX Ozone Season Group 2 units in each notice of data 

availability required in paragraph (b)(1)(iii) of this section 

to the extent necessary to ensure that it is in accordance with 

paragraph (b)(1)(iii) of this section and will calculate the 

CSAPR NOX Ozone Season Group 2 allowance allocation to each CSAPR 

NOX Ozone Season Group 2 unit in accordance with § 97.812(a)(9), 

(10), and (12) and §§ 97.806(b)(2) and 97.830 through 97.835. By 

February 15 immediately after the promulgation of each notice of 

data availability required in paragraph (b)(1)(iii) of this 

section, the Administrator will promulgate a notice of data 

availability of any adjustments of the identification of CSAPR 

NOX Ozone Season Group 2 units that the Administrator determines 

to be necessary, the reasons for accepting or rejecting any 

objections submitted in accordance with paragraph (b)(1)(iv)(A) 

of this section, and the results of such calculations.

(v) To the extent any CSAPR NOX Ozone Season Group 2 

allowances are added to the new unit set-aside after 

promulgation of each notice of data availability required in 

paragraph (b)(1)(iv) of this section, the Administrator will 
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promulgate additional notices of data availability, as deemed 

appropriate, of the allocation of such CSAPR NOX Ozone Season 

Group 2 allowances in accordance with § 97.812(a)(10).

(2) Indian country new unit set-asides. (i) By June 1, 2017 

and June 1 of each year thereafter, the Administrator will 

calculate the CSAPR NOX Ozone Season Group 2 allowance allocation 

to each CSAPR NOX Ozone Season Group 2 unit in Indian country 

within the borders of a State, in accordance with § 97.812(b)(2) 

through (7) and (12), for the control period in the year of the 

applicable calculation deadline under this paragraph and will 

promulgate a notice of data availability of the results of the 

calculations.

(ii) For each notice of data availability required in 

paragraph (b)(2)(i) of this section, the Administrator will 

provide an opportunity for submission of objections to the 

calculations referenced in such notice.

(A) Objections shall be submitted by the deadline specified 

in each notice of data availability required in paragraph 

(b)(2)(i) of this section and shall be limited to addressing 

whether the calculations (including the identification of the 

CSAPR NOX Ozone Season Group 2 units) are in accordance with 

§ 97.812(b)(2) through (7) and (12) and §§ 97.806(b)(2) and 

97.830 through 97.835.
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(B) The Administrator will adjust the calculations to the 

extent necessary to ensure that they are in accordance with the

provisions referenced in paragraph (b)(2)(ii)(A) of this 

section. By August 1 immediately after the promulgation of each 

notice of data availability required in paragraph (b)(2)(i) of 

this section, the Administrator will promulgate a notice of data 

availability of any adjustments that the Administrator 

determines to be necessary with regard to allocations under 

§ 97.812(b)(2) through (7) and (12) and the reasons for 

accepting or rejecting any objections submitted in accordance 

with paragraph (b)(2)(ii)(A) of this section.

(iii) If the Indian country new unit set-aside for such 

control period contains any CSAPR NOX Ozone Season Group 2 

allowances that have not been allocated in the applicable notice 

of data availability required in paragraph (b)(2)(ii) of this 

section, the Administrator will promulgate, by December 15 

immediately after such notice, a notice of data availability 

that identifies any CSAPR NOX Ozone Season Group 2 units that 

commenced commercial operation during the period starting 

January 1 of the year before the year of such control period and 

ending November 30 of the year of such control period.

(iv) For each notice of data availability required in 

paragraph (b)(2)(iii) of this section, the Administrator will 
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provide an opportunity for submission of objections to the 

identification of CSAPR NOX Ozone Season Group 2 units in such 

notice.

(A) Objections shall be submitted by the deadline specified 

in each notice of data availability required in paragraph 

(b)(2)(iii) of this section and shall be limited to addressing 

whether the identification of CSAPR NOX Ozone Season Group 2 

units in such notice is in accordance with paragraph (b)(2)(iii) 

of this section.

(B) The Administrator will adjust the identification of 

CSAPR NOX Ozone Season Group 2 units in each notice of data 

availability required in paragraph (b)(2)(iii) of this section 

to the extent necessary to ensure that it is in accordance with 

paragraph (b)(2)(iii) of this section and will calculate the 

CSAPR NOX Ozone Season Group 2 allowance allocation to each CSAPR 

NOX Ozone Season Group 2 unit in accordance with § 97.812(b)(9), 

(10), and (12) and §§ 97.806(b)(2) and 97.830 through 97.835. By 

February 15 immediately after the promulgation of each notice of 

data availability required in paragraph (b)(2)(iii) of this 

section, the Administrator will promulgate a notice of data 

availability of any adjustments of the identification of CSAPR 

NOX Ozone Season Group 2 units that the Administrator determines 

to be necessary, the reasons for accepting or rejecting any 
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objections submitted in accordance with paragraph (b)(2)(iv)(A) 

of this section, and the results of such calculations. 

(v) To the extent any CSAPR NOX Ozone Season Group 2 

allowances are added to the Indian country new unit set-aside 

after promulgation of each notice of data availability required 

in paragraph (b)(2)(iv) of this section, the Administrator will 

promulgate additional notices of data availability, as deemed 

appropriate, of the allocation of such CSAPR NOX Ozone Season 

Group 2 allowances in accordance with § 97.812(b)(10).

(c) Units incorrectly allocated CSAPR NOX Ozone Season Group 

2 allowances. (1) For each control period in 2017 and 

thereafter, if the Administrator determines that CSAPR NOX Ozone 

Season Group 2 allowances were allocated under paragraph (a) of 

this section, or under a provision of a SIP revision approved 

under § 52.38(b)(6), (7), (8), or (9) of this chapter, where 

such control period and the recipient are covered by the 

provisions of paragraph (c)(1)(i) of this section or were 

allocated under § 97.812(a)(2) through (7), (9), and (12) and 

(b)(2) through (7), (9), and (12), or under a provision of a SIP 

revision approved under § 52.38(b)(6), (8), or (9) of this 

chapter, where such control period and the recipient are covered 

by the provisions of paragraph (c)(1)(ii) of this section, then 

the Administrator will notify the designated representative of 
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the recipient and will act in accordance with the procedures set 

forth in paragraphs (c)(2) through (5) of this section:

(i)(A) The recipient is not actually a CSAPR NOX Ozone 

Season Group 2 unit under § 97.804 as of May 1, 2017 and is 

allocated CSAPR NOX Ozone Season Group 2 allowances for such 

control period or, in the case of an allocation under a 

provision of a SIP revision approved under § 52.38(b)(6), (7), 

(8), or (9) of this chapter, the recipient is not actually a 

CSAPR NOX Ozone Season Group 2 unit as of May 1, 2017 and is 

allocated CSAPR NOX Ozone Season Group 2 allowances for such 

control period that the SIP revision provides should be 

allocated only to recipients that are CSAPR NOX Ozone Season 

Group 2 units as of May 1, 2017; or

(B) The recipient is not located as of May 1 of the control 

period in the State from whose NOX Ozone Season Group 2 trading 

budget the CSAPR NOX Ozone Season Group 2 allowances allocated 

under paragraph (a) of this section, or under a provision of a 

SIP revision approved under § 52.38(b)(6), (7), (8), or (9) of 

this chapter, were allocated for such control period.

(ii) The recipient is not actually a CSAPR NOX Ozone Season 

Group 2 unit under § 97.804 as of May 1 of such control period 

and is allocated CSAPR NOX Ozone Season Group 2 allowances for 

such control period or, in the case of an allocation under a 
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provision of a SIP revision approved under § 52.38(b)(6), (8), 

or (9) of this chapter, the recipient is not actually a CSAPR NOX

Ozone Season Group 2 unit as of May 1 of such control period and 

is allocated CSAPR NOX Ozone Season Group 2 allowances for such 

control period that the SIP revision provides should be 

allocated only to recipients that are CSAPR NOX Ozone Season 

Group 2 units as of May 1 of such control period.

(2) Except as provided in paragraph (c)(3) or (4) of this 

section, the Administrator will not record such CSAPR NOX Ozone 

Season Group 2 allowances under § 97.821.

(3) If the Administrator already recorded such CSAPR NOX

Ozone Season Group 2 allowances under § 97.821 and if the 

Administrator makes the determination under paragraph (c)(1) of 

this section before making deductions for the source that 

includes such recipient under § 97.824(b) for such control 

period, then the Administrator will deduct from the account in 

which such CSAPR NOX Ozone Season Group 2 allowances were 

recorded an amount of CSAPR NOX Ozone Season Group 2 allowances 

allocated for the same or a prior control period equal to the 

amount of such already recorded CSAPR NOX Ozone Season Group 2 

allowances. The authorized account representative shall ensure 

that there are sufficient CSAPR NOX Ozone Season Group 2 

allowances in such account for completion of the deduction.
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(4) If the Administrator already recorded such CSAPR NOX

Ozone Season Group 2 allowances under § 97.821 and if the 

Administrator makes the determination under paragraph (c)(1) of 

this section after making deductions for the source that 

includes such recipient under § 97.824(b) for such control 

period, then the Administrator will not make any deduction to 

take account of such already recorded CSAPR NOX Ozone Season 

Group 2 allowances.

(5)(i) With regard to the CSAPR NOX Ozone Season Group 2 

allowances that are not recorded, or that are deducted as an 

incorrect allocation, in accordance with paragraphs (c)(2) and 

(3) of this section for a recipient under paragraph (c)(1)(i) of 

this section, the Administrator will:

(A) Transfer such CSAPR NOX Ozone Season Group 2 allowances 

to the new unit set-aside for such control period for the State 

from whose NOX Ozone Season Group 2 trading budget the CSAPR NOX

Ozone Season Group 2 allowances were allocated; or

(B) If the State has a SIP revision approved under 

§ 52.38(b)(6), (8), or (9) of this chapter covering such control 

period, include such CSAPR NOX Ozone Season Group 2 allowances in 

the portion of the State NOX Ozone Season Group 2 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision.
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(ii) With regard to the CSAPR NOX Ozone Season Group 2 

allowances that were not allocated from the Indian country new 

unit set-aside for such control period and that are not 

recorded, or that are deducted as an incorrect allocation, in 

accordance with paragraphs (c)(2) and (3) of this section for a 

recipient under paragraph (c)(1)(ii) of this section, the 

Administrator will:

(A) Transfer such CSAPR NOX Ozone Season Group 2 allowances 

to the new unit set-aside for such control period; or

(B) If the State has a SIP revision approved under 

§ 52.38(b)(6), (8), or (9) of this chapter covering such control 

period, include such CSAPR NOX Ozone Season Group 2 allowances in 

the portion of the State NOX Ozone Season Group 2 trading budget 

that may be allocated for such control period in accordance with 

such SIP revision.

(iii) With regard to the CSAPR NOX Ozone Season Group 2 

allowances that were allocated from the Indian country new unit 

set-aside for such control period and that are not recorded, or 

that are deducted as an incorrect allocation, in accordance with 

paragraphs (c)(2) and (3) of this section for a recipient under 

paragraph (c)(1)(ii) of this section, the Administrator will 

transfer such CSAPR NOX Ozone Season Group 2 allowances to the 

Indian country new unit set-aside for such control period.
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§ 97.812 CSAPR NOX Ozone Season Group 2 allowance allocations to 

new units.

(a) For each control period in 2017 and thereafter and for 

the CSAPR NOX Ozone Season Group 2 units in each State, the 

Administrator will allocate CSAPR NOX Ozone Season Group 2 

allowances to the CSAPR NOX Ozone Season Group 2 units as 

follows:

(1) The CSAPR NOX Ozone Season Group 2 allowances will be 

allocated to the following CSAPR NOX Ozone Season Group 2 units, 

except as provided in paragraph (a)(10) of this section:

(i) CSAPR NOX Ozone Season Group 2 units that are not 

allocated an amount of CSAPR NOX Ozone Season Group 2 allowances 

in the notice of data availability issued under § 97.811(a)(1);

(ii) CSAPR NOX Ozone Season Group 2 units whose allocation 

of an amount of CSAPR NOX Ozone Season Group 2 allowances for 

such control period in the notice of data availability issued 

under § 97.811(a)(1) is covered by § 97.811(c)(2) or (3);

(iii) CSAPR NOX Ozone Season Group 2 units that are 

allocated an amount of CSAPR NOX Ozone Season Group 2 allowances 

for such control period in the notice of data availability 

issued under § 97.811(a)(1), which allocation is terminated for 

such control period pursuant to § 97.811(a)(2), and that operate 
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during the control period immediately preceding such control 

period; or

(iv) For purposes of paragraph (a)(9) of this section, 

CSAPR NOX Ozone Season Group 2 units under § 97.811(c)(1)(ii) 

whose allocation of an amount of CSAPR NOX Ozone Season Group 2 

allowances for such control period in the notice of data 

availability issued under § 97.811(b)(1)(ii)(B) is covered by 

§ 97.811(c)(2) or (3).

(2) The Administrator will establish a separate new unit 

set-aside for the State for each such control period. Each such 

new unit set-aside will be allocated CSAPR NOX Ozone Season Group 

2 allowances in an amount equal to the applicable amount of tons 

of NOX emissions as set forth in § 97.810(a) and will be 

allocated additional CSAPR NOX Ozone Season Group 2 allowances 

(if any) in accordance with § 97.811(a)(2) and (c)(5) and 

paragraph (b)(10) of this section.

(3) The Administrator will determine, for each CSAPR NOX

Ozone Season Group 2 unit described in paragraph (a)(1) of this 

section, an allocation of CSAPR NOX Ozone Season Group 2 

allowances for the later of the following control periods and 

for each subsequent control period:

(i) The control period in 2017;
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(ii) The first control period after the control period in 

which the CSAPR NOX Ozone Season Group 2 unit commences 

commercial operation;

(iii) For a unit described in paragraph (a)(1)(ii) of this 

section, the first control period in which the CSAPR NOX Ozone 

Season Group 2 unit operates in the State after operating in 

another jurisdiction and for which the unit is not already 

allocated one or more CSAPR NOX Ozone Season Group 2 allowances; 

and

(iv) For a unit described in paragraph (a)(1)(iii) of this 

section, the first control period after the control period in 

which the unit resumes operation.

(4)(i) The allocation to each CSAPR NOX Ozone Season Group 2 

unit described in paragraphs (a)(1)(i) through (iii) of this 

section and for each control period described in paragraph 

(a)(3) of this section will be an amount equal to the unit’s 

total tons of NOX emissions during the immediately preceding 

control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (a)(4)(i) of this section in accordance with 

paragraphs (a)(5) through (7) and (12) of this section.

(5) The Administrator will calculate the sum of the CSAPR 

NOX Ozone Season Group 2 allowances determined for all such CSAPR 
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NOX Ozone Season Group 2 units under paragraph (a)(4)(i) of this 

section in the State for such control period.

(6) If the amount of CSAPR NOX Ozone Season Group 2 

allowances in the new unit set-aside for the State for such 

control period is greater than or equal to the sum under 

paragraph (a)(5) of this section, then the Administrator will 

allocate the amount of CSAPR NOX Ozone Season Group 2 allowances 

determined for each such CSAPR NOX Ozone Season Group 2 unit 

under paragraph (a)(4)(i) of this section.

(7) If the amount of CSAPR NOX Ozone Season Group 2 

allowances in the new unit set-aside for the State for such 

control period is less than the sum under paragraph (a)(5) of 

this section, then the Administrator will allocate to each such 

CSAPR NOX Ozone Season Group 2 unit the amount of the CSAPR NOX

Ozone Season Group 2 allowances determined under paragraph 

(a)(4)(i) of this section for the unit, multiplied by the amount 

of CSAPR NOX Ozone Season Group 2 allowances in the new unit setaside for such control period, divided by the sum under 

paragraph (a)(5) of this section, and rounded to the nearest 

allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§ 97.811(b)(1)(i) and (ii), of the amount of CSAPR NOX Ozone 
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Season Group 2 allowances allocated under paragraphs (a)(2) 

through (7) and (12) of this section for such control period to 

each CSAPR NOX Ozone Season Group 2 unit eligible for such 

allocation.

(9) If, after completion of the procedures under paragraphs 

(a)(5) through (8) of this section for such control period, any 

unallocated CSAPR NOX Ozone Season Group 2 allowances remain in 

the new unit set-aside for the State for such control period, 

the Administrator will allocate such CSAPR NOX Ozone Season Group 

2 allowances as follows—

(i) The Administrator will determine, for each unit 

described in paragraph (a)(1) of this section that commenced 

commercial operation during the period starting January 1 of the 

year before the year of such control period and ending November 

30 of the year of such control period, the positive difference 

(if any) between the unit’s emissions during such control period 

and the amount of CSAPR NOX Ozone Season Group 2 allowances 

referenced in the notice of data availability required under 

§ 97.811(b)(1)(ii) for the unit for such control period;

(ii) The Administrator will determine the sum of the 

positive differences determined under paragraph (a)(9)(i) of 

this section;
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(iii) If the amount of unallocated CSAPR NOX Ozone Season 

Group 2 allowances remaining in the new unit set-aside for the 

State for such control period is greater than or equal to the 

sum determined under paragraph (a)(9)(ii) of this section, then 

the Administrator will allocate the amount of CSAPR NOX Ozone 

Season Group 2 allowances determined for each such CSAPR NOX

Ozone Season Group 2 unit under paragraph (a)(9)(i) of this 

section; and

(iv) If the amount of unallocated CSAPR NOX Ozone Season 

Group 2 allowances remaining in the new unit set-aside for the 

State for such control period is less than the sum under 

paragraph (a)(9)(ii) of this section, then the Administrator 

will allocate to each such CSAPR NOX Ozone Season Group 2 unit 

the amount of the CSAPR NOX Ozone Season Group 2 allowances 

determined under paragraph (a)(9)(i) of this section for the 

unit, multiplied by the amount of unallocated CSAPR NOX Ozone 

Season Group 2 allowances remaining in the new unit set-aside 

for such control period, divided by the sum under paragraph 

(a)(9)(ii) of this section, and rounded to the nearest 

allowance.

(10) If, after completion of the procedures under 

paragraphs (a)(9) and (12) of this section for such control 

period, any unallocated CSAPR NOX Ozone Season Group 2 allowances 
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remain in the new unit set-aside for the State for such control 

period, the Administrator will allocate to each CSAPR NOX Ozone 

Season Group 2 unit that is in the State, is allocated an amount 

of CSAPR NOX Ozone Season Group 2 allowances in the notice of 

data availability issued under § 97.811(a)(1), and continues to 

be allocated CSAPR NOX Ozone Season Group 2 allowances for such 

control period in accordance with § 97.811(a)(2), an amount of 

CSAPR NOX Ozone Season Group 2 allowances equal to the following: 

the total amount of such remaining unallocated CSAPR NOX Ozone 

Season Group 2 allowances in such new unit set-aside, multiplied 

by the unit’s allocation under § 97.811(a) for such control 

period, divided by the remainder of the amount of tons in the 

applicable State NOX Ozone Season Group 2 trading budget minus 

the sum of the amounts of tons in such new unit set-aside and 

the Indian country new unit set-aside for the State for such 

control period, and rounded to the nearest allowance.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§ 97.811(b)(1)(iii), (iv), and (v), of the amount of CSAPR NOX

Ozone Season Group 2 allowances allocated under paragraphs 

(a)(9), (10), and (12) of this section for such control period 

to each CSAPR NOX Ozone Season Group 2 unit eligible for such 

allocation.
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(12)(i) Notwithstanding the requirements of paragraphs 

(a)(2) through (11) of this section, if the calculations of 

allocations of a new unit set-aside for a control period in a 

given year under paragraph (a)(7) of this section, paragraphs 

(a)(6) and (9)(iv) of this section, or paragraphs (a)(6), 

(9)(iii), and (10) of this section would otherwise result in 

total allocations of such new unit set-aside exceeding the total 

amount of such new unit set-aside, then the Administrator will 

adjust the results of the calculations under paragraph (a)(7), 

(9)(iv), or (10) of this section, as applicable, as follows. The 

Administrator will list the CSAPR NOX Ozone Season Group 2 units 

in descending order based on the amount of such units’ 

allocations under paragraph (a)(7), (9)(iv), or (10) of this 

section, as applicable, and, in cases of equal allocation 

amounts, in alphabetical order of the relevant source’s name and 

numerical order of the relevant unit’s identification number, 

and will reduce each unit’s allocation under paragraph (a)(7), 

(9)(iv), or (10) of this section, as applicable, by one CSAPR NOX

Ozone Season Group 2 allowance (but not below zero) in the order 

in which the units are listed and will repeat this reduction 

process as necessary, until the total allocations of such new 

unit set-aside equal the total amount of such new unit setaside.
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(ii) Notwithstanding the requirements of paragraphs (a)(10) 

and (11) of this section, if the calculations of allocations of 

a new unit set-aside for a control period in a given year under 

paragraphs (a)(6), (9)(iii), and (10) of this section would 

otherwise result in a total allocations of such new unit setaside less than the total amount of such new unit set-aside, 

then the Administrator will adjust the results of the 

calculations under paragraph (a)(10) of this section, as 

follows. The Administrator will list the CSAPR NOX Ozone Season 

Group 2 units in descending order based on the amount of such 

units’ allocations under paragraph (a)(10) of this section and, 

in cases of equal allocation amounts, in alphabetical order of 

the relevant source’s name and numerical order of the relevant 

unit’s identification number, and will increase each unit’s 

allocation under paragraph (a)(10) of this section by one CSAPR 

NOX Ozone Season Group 2 allowance in the order in which the 

units are listed and will repeat this increase process as 

necessary, until the total allocations of such new unit setaside equal the total amount of such new unit set-aside.

(b) For each control period in 2017 and thereafter and for 

the CSAPR NOX Ozone Season Group 2 units located in Indian 

country within the borders of each State, the Administrator will 
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allocate CSAPR NOX Ozone Season Group 2 allowances to the CSAPR 

NOX Ozone Season Group 2 units as follows:

(1) The CSAPR NOX Ozone Season Group 2 allowances will be 

allocated to the following CSAPR NOX Ozone Season Group 2 units, 

except as provided in paragraph (b)(10) of this section:

(i) CSAPR NOX Ozone Season Group 2 units that are not 

allocated an amount of CSAPR NOX Ozone Season Group 2 allowances 

in the notice of data availability issued under § 97.811(a)(1); 

or

(ii) For purposes of paragraph (b)(9) of this section, 

CSAPR NOX Ozone Season Group 2 units under § 97.811(c)(1)(ii) 

whose allocation of an amount of CSAPR NOX Ozone Season Group 2 

allowances for such control period in the notice of data 

availability issued under § 97.811(b)(2)(ii)(B) is covered by 

§ 97.811(c)(2) or (3).

(2) The Administrator will establish a separate Indian 

country new unit set-aside for the State for each such control 

period. Each such Indian country new unit set-aside will be 

allocated CSAPR NOX Ozone Season Group 2 allowances in an amount 

equal to the applicable amount of tons of NOX emissions as set 

forth in § 97.810(a) and will be allocated additional CSAPR NOX

Ozone Season Group 2 allowances (if any) in accordance with 

§ 97.811(c)(5).
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(3) The Administrator will determine, for each CSAPR NOX

Ozone Season Group 2 unit described in paragraph (b)(1) of this 

section, an allocation of CSAPR NOX Ozone Season Group 2 

allowances for the later of the following control periods and 

for each subsequent control period:

(i) The control period in 2017; and

(ii) The first control period after the control period in 

which the CSAPR NOX Ozone Season Group 2 unit commences 

commercial operation.

(4)(i) The allocation to each CSAPR NOX Ozone Season Group 2 

unit described in paragraph (b)(1)(i) of this section and for 

each control period described in paragraph (b)(3) of this 

section will be an amount equal to the unit’s total tons of NOX

emissions during the immediately preceding control period.

(ii) The Administrator will adjust the allocation amount in 

paragraph (b)(4)(i) of this section in accordance with 

paragraphs (b)(5) through (7) and (12) of this section.

(5) The Administrator will calculate the sum of the CSAPR 

NOX Ozone Season Group 2 allowances determined for all such CSAPR 

NOX Ozone Season Group 2 units under paragraph (b)(4)(i) of this 

section in Indian country within the borders of the State for 

such control period.
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(6) If the amount of CSAPR NOX Ozone Season Group 2 

allowances in the Indian country new unit set-aside for the 

State for such control period is greater than or equal to the 

sum under paragraph (b)(5) of this section, then the 

Administrator will allocate the amount of CSAPR NOX Ozone Season 

Group 2 allowances determined for each such CSAPR NOX Ozone 

Season Group 2 unit under paragraph (b)(4)(i) of this section.

(7) If the amount of CSAPR NOX Ozone Season Group 2 

allowances in the Indian country new unit set-aside for the 

State for such control period is less than the sum under 

paragraph (b)(5) of this section, then the Administrator will 

allocate to each such CSAPR NOX Ozone Season Group 2 unit the 

amount of the CSAPR NOX Ozone Season Group 2 allowances 

determined under paragraph (b)(4)(i) of this section for the 

unit, multiplied by the amount of CSAPR NOX Ozone Season Group 2 

allowances in the Indian country new unit set-aside for such 

control period, divided by the sum under paragraph (b)(5) of 

this section, and rounded to the nearest allowance.

(8) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§ 97.811(b)(2)(i) and (ii), of the amount of CSAPR NOX Ozone 

Season Group 2 allowances allocated under paragraphs (b)(2) 

through (7) and (12) of this section for such control period to 
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each CSAPR NOX Ozone Season Group 2 unit eligible for such 

allocation.

(9) If, after completion of the procedures under paragraphs 

(b)(5) through (8) of this section for such control period, any 

unallocated CSAPR NOX Ozone Season Group 2 allowances remain in 

the Indian country new unit set-aside for the State for such 

control period, the Administrator will allocate such CSAPR NOX

Ozone Season Group 2 allowances as follows—

(i) The Administrator will determine, for each unit 

described in paragraph (b)(1) of this section that commenced 

commercial operation during the period starting January 1 of the 

year before the year of such control period and ending November 

30 of the year of such control period, the positive difference 

(if any) between the unit’s emissions during such control period 

and the amount of CSAPR NOX Ozone Season Group 2 allowances 

referenced in the notice of data availability required under 

§ 97.811(b)(2)(ii) for the unit for such control period;

(ii) The Administrator will determine the sum of the 

positive differences determined under paragraph (b)(9)(i) of 

this section;

(iii) If the amount of unallocated CSAPR NOX Ozone Season 

Group 2 allowances remaining in the Indian country new unit setaside for the State for such control period is greater than or 
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equal to the sum determined under paragraph (b)(9)(ii) of this 

section, then the Administrator will allocate the amount of 

CSAPR NOX Ozone Season Group 2 allowances determined for each 

such CSAPR NOX Ozone Season Group 2 unit under paragraph 

(b)(9)(i) of this section; and

(iv) If the amount of unallocated CSAPR NOX Ozone Season 

Group 2 allowances remaining in the Indian country new unit setaside for the State for such control period is less than the sum 

under paragraph (b)(9)(ii) of this section, then the 

Administrator will allocate to each such CSAPR NOX Ozone Season 

Group 2 unit the amount of the CSAPR NOX Ozone Season Group 2 

allowances determined under paragraph (b)(9)(i) of this section 

for the unit, multiplied by the amount of unallocated CSAPR NOX

Ozone Season Group 2 allowances remaining in the Indian country 

new unit set-aside for such control period, divided by the sum 

under paragraph (b)(9)(ii) of this section, and rounded to the 

nearest allowance.

(10) If, after completion of the procedures under 

paragraphs (b)(9) and (12) of this section for such control 

period, any unallocated CSAPR NOX Ozone Season Group 2 allowances 

remain in the Indian country new unit set-aside for the State 

for such control period, the Administrator will:
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(i) Transfer such unallocated CSAPR NOX Ozone Season Group 2 

allowances to the new unit set-aside for the State for such 

control period; or

(ii) If the State has a SIP revision approved under 

§ 52.38(b)(6), (8), or (9) of this chapter covering such control 

period, include such unallocated CSAPR NOX Ozone Season Group 2 

allowances in the portion of the State NOX Ozone Season Group 2 

trading budget that may be allocated for such control period in 

accordance with such SIP revision.

(11) The Administrator will notify the public, through the 

promulgation of the notices of data availability described in 

§ 97.811(b)(2)(iii), (iv), and (v), of the amount of CSAPR NOX

Ozone Season Group 2 allowances allocated under paragraphs 

(b)(9), (10), and (12) of this section for such control period 

to each CSAPR NOX Ozone Season Group 2 unit eligible for such 

allocation.

(12)(i) Notwithstanding the requirements of paragraphs 

(b)(2) through (11) of this section, if the calculations of 

allocations of an Indian country new unit set-aside for a 

control period in a given year under paragraph (b)(7) of this 

section, paragraphs (b)(6) and (9)(iv) of this section, or

paragraphs (b)(6), (9)(iii), and (10) of this section would 

otherwise result in total allocations of such Indian country new 
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unit set-aside exceeding the total amount of such Indian country 

new unit set-aside, then the Administrator will adjust the 

results of the calculations under paragraph (b)(7), (9)(iv), or 

(10) of this section, as applicable, as follows. The 

Administrator will list the CSAPR NOX Ozone Season Group 2 units 

in descending order based on the amount of such units’ 

allocations under paragraph (b)(7), (9)(iv), or (10) of this 

section, as applicable, and, in cases of equal allocation 

amounts, in alphabetical order of the relevant source’s name and 

numerical order of the relevant unit’s identification number, 

and will reduce each unit’s allocation under paragraph (b)(7), 

(9)(iv), or (10) of this section, as applicable, by one CSAPR NOX

Ozone Season Group 2 allowance (but not below zero) in the order 

in which the units are listed and will repeat this reduction 

process as necessary, until the total allocations of such Indian 

country new unit set-aside equal the total amount of such Indian 

country new unit set-aside.

(ii) Notwithstanding the requirements of paragraphs (b)(10) 

and (11) of this section, if the calculations of allocations of 

an Indian country new unit set-aside for a control period in a 

given year under paragraphs (b)(6), (9)(iii), and (10) of this 

section would otherwise result in a total allocations of such 

Indian country new unit set-aside less than the total amount of 
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such Indian country new unit set-aside, then the Administrator 

will adjust the results of the calculations under paragraph 

(b)(10) of this section, as follows. The Administrator will list 

the CSAPR NOX Ozone Season Group 2 units in descending order 

based on the amount of such units’ allocations under paragraph 

(b)(10) of this section and, in cases of equal allocation 

amounts, in alphabetical order of the relevant source’s name and 

numerical order of the relevant unit’s identification number, 

and will increase each unit’s allocation under paragraph (b)(10) 

of this section by one CSAPR NOX Ozone Season Group 2 allowance 

in the order in which the units are listed and will repeat this 

increase process as necessary, until the total allocations of 

such Indian country new unit set-aside equal the total amount of 

such Indian country new unit set-aside.

§ 97.813 Authorization of designated representative and 

alternate designated representative.

(a) Except as provided under § 97.815, each CSAPR NOX Ozone 

Season Group 2 source, including all CSAPR NOX Ozone Season Group 

2 units at the source, shall have one and only one designated 

representative, with regard to all matters under the CSAPR NOX

Ozone Season Group 2 Trading Program.

(1) The designated representative shall be selected by an 

agreement binding on the owners and operators of the source and 
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all CSAPR NOX Ozone Season Group 2 units at the source and shall 

act in accordance with the certification statement in 

§ 97.816(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a 

complete certificate of representation under § 97.816:

(i) The designated representative shall be authorized and 

shall represent and, by his or her representations, actions, 

inactions, or submissions, legally bind each owner and operator 

of the source and each CSAPR NOX Ozone Season Group 2 unit at the 

source in all matters pertaining to the CSAPR NOX Ozone Season 

Group 2 Trading Program, notwithstanding any agreement between 

the designated representative and such owners and operators; and

(ii) The owners and operators of the source and each CSAPR 

NOX Ozone Season Group 2 unit at the source shall be bound by any 

decision or order issued to the designated representative by the 

Administrator regarding the source or any such unit.

(b) Except as provided under § 97.815, each CSAPR NOX Ozone 

Season Group 2 source may have one and only one alternate 

designated representative, who may act on behalf of the 

designated representative. The agreement by which the alternate 

designated representative is selected shall include a procedure 

for authorizing the alternate designated representative to act 

in lieu of the designated representative.
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(1) The alternate designated representative shall be 

selected by an agreement binding on the owners and operators of 

the source and all CSAPR NOX Ozone Season Group 2 units at the 

source and shall act in accordance with the certification 

statement in § 97.816(a)(4)(iii).

(2) Upon and after receipt by the Administrator of a 

complete certificate of representation under § 97.816,

(i) The alternate designated representative shall be 

authorized;

(ii) Any representation, action, inaction, or submission by 

the alternate designated representative shall be deemed to be a 

representation, action, inaction, or submission by the 

designated representative; and

(iii) The owners and operators of the source and each CSAPR 

NOX Ozone Season Group 2 unit at the source shall be bound by any 

decision or order issued to the alternate designated 

representative by the Administrator regarding the source or any 

such unit.

(c) Except in this section, § 97.802, and §§ 97.814 through 

97.818, whenever the term “designated representative” (as 

distinguished from the term “common designated representative”) 

is used in this subpart, the term shall be construed to include 
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the designated representative or any alternate designated 

representative.

§ 97.814 Responsibilities of designated representative and 

alternate designated representative.

(a) Except as provided under § 97.818 concerning delegation 

of authority to make submissions, each submission under the 

CSAPR NOX Ozone Season Group 2 Trading Program shall be made, 

signed, and certified by the designated representative or 

alternate designated representative for each CSAPR NOX Ozone 

Season Group 2 source and CSAPR NOX Ozone Season Group 2 unit for 

which the submission is made. Each such submission shall include 

the following certification statement by the designated 

representative or alternate designated representative: “I am 

authorized to make this submission on behalf of the owners and 

operators of the source or units for which the submission is 

made. I certify under penalty of law that I have personally 

examined, and am familiar with, the statements and information 

submitted in this document and all its attachments. Based on my 

inquiry of those individuals with primary responsibility for 

obtaining the information, I certify that the statements and 

information are to the best of my knowledge and belief true, 

accurate, and complete. I am aware that there are significant 

penalties for submitting false statements and information or 
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omitting required statements and information, including the 

possibility of fine or imprisonment.”

(b) The Administrator will accept or act on a submission 

made for a CSAPR NOX Ozone Season Group 2 source or a CSAPR NOX

Ozone Season Group 2 unit only if the submission has been made, 

signed, and certified in accordance with paragraph (a) of this 

section and § 97.818.

§ 97.815 Changing designated representative and alternate 

designated representative; changes in owners and operators; 

changes in units at the source.

(a) Changing designated representative. The designated 

representative may be changed at any time upon receipt by the 

Administrator of a superseding complete certificate of 

representation under § 97.816. Notwithstanding any such change, 

all representations, actions, inactions, and submissions by the 

previous designated representative before the time and date when 

the Administrator receives the superseding certificate of 

representation shall be binding on the new designated 

representative and the owners and operators of the CSAPR NOX

Ozone Season Group 2 source and the CSAPR NOX Ozone Season Group 

2 units at the source.

(b) Changing alternate designated representative. The 

alternate designated representative may be changed at any time 
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upon receipt by the Administrator of a superseding complete 

certificate of representation under § 97.816. Notwithstanding 

any such change, all representations, actions, inactions, and 

submissions by the previous alternate designated representative 

before the time and date when the Administrator receives the 

superseding certificate of representation shall be binding on 

the new alternate designated representative, the designated 

representative, and the owners and operators of the CSAPR NOX

Ozone Season Group 2 source and the CSAPR NOX Ozone Season Group 

2 units at the source.

(c) Changes in owners and operators. (1) In the event an 

owner or operator of a CSAPR NOX Ozone Season Group 2 source or a 

CSAPR NOX Ozone Season Group 2 unit at the source is not included 

in the list of owners and operators in the certificate of 

representation under § 97.816, such owner or operator shall be 

deemed to be subject to and bound by the certificate of 

representation, the representations, actions, inactions, and 

submissions of the designated representative and any alternate 

designated representative of the source or unit, and the 

decisions and orders of the Administrator, as if the owner or 

operator were included in such list.

(2) Within 30 days after any change in the owners and 

operators of a CSAPR NOX Ozone Season Group 2 source or a CSAPR 
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NOX Ozone Season Group 2 unit at the source, including the 

addition or removal of an owner or operator, the designated 

representative or any alternate designated representative shall 

submit a revision to the certificate of representation under 

§ 97.816 amending the list of owners and operators to reflect 

the change.

(d) Changes in units at the source. Within 30 days of any 

change in which units are located at a CSAPR NOX Ozone Season 

Group 2 source (including the addition or removal of a unit), 

the designated representative or any alternate designated 

representative shall submit a certificate of representation 

under § 97.816 amending the list of units to reflect the change.

(1) If the change is the addition of a unit that operated 

(other than for purposes of testing by the manufacturer before 

initial installation) before being located at the source, then 

the certificate of representation shall identify, in a format 

prescribed by the Administrator, the entity from whom the unit 

was purchased or otherwise obtained (including name, address, 

telephone number, and facsimile number (if any)), the date on 

which the unit was purchased or otherwise obtained, and the date 

on which the unit became located at the source.

(2) If the change is the removal of a unit, then the 

certificate of representation shall identify, in a format 
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prescribed by the Administrator, the entity to which the unit 

was sold or that otherwise obtained the unit (including name, 

address, telephone number, and facsimile number (if any)), the 

date on which the unit was sold or otherwise obtained, and the 

date on which the unit became no longer located at the source.

§ 97.816 Certificate of representation.

(a) A complete certificate of representation for a 

designated representative or an alternate designated 

representative shall include the following elements in a format 

prescribed by the Administrator:

(1) Identification of the CSAPR NOX Ozone Season Group 2 

source, and each CSAPR NOX Ozone Season Group 2 unit at the 

source, for which the certificate of representation is 

submitted, including source name, source category and NAICS code 

(or, in the absence of a NAICS code, an equivalent code), State, 

plant code, county, latitude and longitude, unit identification 

number and type, identification number and nameplate capacity 

(in MWe, rounded to the nearest tenth) of each generator served 

by each such unit, actual or projected date of commencement of 

commercial operation, and a statement of whether such source is 

located in Indian country. If a projected date of commencement 

of commercial operation is provided, the actual date of 
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commencement of commercial operation shall be provided when such 

information becomes available.

(2) The name, address, e-mail address (if any), telephone 

number, and facsimile transmission number (if any) of the 

designated representative and any alternate designated 

representative.

(3) A list of the owners and operators of the CSAPR NOX

Ozone Season Group 2 source and of each CSAPR NOX Ozone Season 

Group 2 unit at the source.

(4) The following certification statements by the 

designated representative and any alternate designated 

representative—

(i) “I certify that I was selected as the designated 

representative or alternate designated representative, as 

applicable, by an agreement binding on the owners and operators 

of the source and each CSAPR NOX Ozone Season Group 2 unit at the 

source.”

(ii) “I certify that I have all the necessary authority to 

carry out my duties and responsibilities under the CSAPR NOX

Ozone Season Group 2 Trading Program on behalf of the owners and 

operators of the source and of each CSAPR NOX Ozone Season Group 

2 unit at the source and that each such owner and operator shall 

be fully bound by my representations, actions, inactions, or 
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submissions and by any decision or order issued to me by the 

Administrator regarding the source or unit.”

(iii) “Where there are multiple holders of a legal or 

equitable title to, or a leasehold interest in, a CSAPR NOX Ozone 

Season Group 2 unit, or where a utility or industrial customer 

purchases power from a CSAPR NOX Ozone Season Group 2 unit under 

a life-of-the-unit, firm power contractual arrangement, I 

certify that: I have given a written notice of my selection as 

the ‘designated representative’ or ‘alternate designated 

representative’, as applicable, and of the agreement by which I 

was selected to each owner and operator of the source and of 

each CSAPR NOX Ozone Season Group 2 unit at the source; and CSAPR 

NOX Ozone Season Group 2 allowances and proceeds of transactions 

involving CSAPR NOX Ozone Season Group 2 allowances will be 

deemed to be held or distributed in proportion to each holder’s 

legal, equitable, leasehold, or contractual reservation or 

entitlement, except that, if such multiple holders have 

expressly provided for a different distribution of CSAPR NOX

Ozone Season Group 2 allowances by contract, CSAPR NOX Ozone 

Season Group 2 allowances and proceeds of transactions involving 

CSAPR NOX Ozone Season Group 2 allowances will be deemed to be 

held or distributed in accordance with the contract.”
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(5) The signature of the designated representative and any 

alternate designated representative and the dates signed.

(b) Unless otherwise required by the Administrator, 

documents of agreement referred to in the certificate of 

representation shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.

(c) A certificate of representation under this section or 

§ 97.516 that complies with the provisions of paragraph (a) of 

this section except that it contains the phrase “TR NOX Ozone 

Season” in place of the phrase “CSAPR NOX Ozone Season Group 2” 

in the required certification statements will be considered a 

complete certificate of representation under this section, and 

the certification statements included in such certificate of

representation will be interpreted for purposes of this subpart 

as if the phrase “CSAPR NOX Ozone Season Group 2” appeared in 

place of the phrase “TR NOX Ozone Season”.

§ 97.817 Objections concerning designated representative and 

alternate designated representative.

(a) Once a complete certificate of representation under 

§ 97.816 has been submitted and received, the Administrator will 

rely on the certificate of representation unless and until a 
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superseding complete certificate of representation under 

§ 97.816 is received by the Administrator.

(b) Except as provided in paragraph (a) of this section, no 

objection or other communication submitted to the Administrator 

concerning the authorization, or any representation, action, 

inaction, or submission, of a designated representative or 

alternate designated representative shall affect any 

representation, action, inaction, or submission of the 

designated representative or alternate designated representative 

or the finality of any decision or order by the Administrator 

under the CSAPR NOX Ozone Season Group 2 Trading Program.

(c) The Administrator will not adjudicate any private legal 

dispute concerning the authorization or any representation, 

action, inaction, or submission of any designated representative 

or alternate designated representative, including private legal 

disputes concerning the proceeds of CSAPR NOX Ozone Season Group 

2 allowance transfers.

§ 97.818 Delegation by designated representative and alternate 

designated representative.

(a) A designated representative may delegate, to one or 

more natural persons, his or her authority to make an electronic 

submission to the Administrator provided for or required under 

this subpart.
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(b) An alternate designated representative may delegate, to 

one or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(c) In order to delegate authority to a natural person to 

make an electronic submission to the Administrator in accordance 

with paragraph (a) or (b) of this section, the designated 

representative or alternate designated representative, as 

appropriate, must submit to the Administrator a notice of 

delegation, in a format prescribed by the Administrator, that 

includes the following elements:

(1) The name, address, e-mail address, telephone number, 

and facsimile transmission number (if any) of such designated 

representative or alternate designated representative;

(2) The name, address, e-mail address, telephone number, 

and facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(3) For each such natural person, a list of the type or 

types of electronic submissions under paragraph (a) or (b) of 

this section for which authority is delegated to him or her; and

(4) The following certification statements by such 

designated representative or alternate designated 

representative:
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(i) “I agree that any electronic submission to the 

Administrator that is made by an agent identified in this notice 

of delegation and of a type listed for such agent in this notice 

of delegation and that is made when I am a designated 

representative or alternate designated representative, as 

appropriate, and before this notice of delegation is superseded 

by another notice of delegation under 40 CFR 97.818(d) shall be 

deemed to be an electronic submission by me.”

(ii) “Until this notice of delegation is superseded by 

another notice of delegation under 40 CFR 97.818(d), I agree to 

maintain an e-mail account and to notify the Administrator 

immediately of any change in my e-mail address unless all 

delegation of authority by me under 40 CFR 97.818 is 

terminated.”.

(d) A notice of delegation submitted under paragraph (c) of 

this section shall be effective, with regard to the designated 

representative or alternate designated representative identified 

in such notice, upon receipt of such notice by the Administrator 

and until receipt by the Administrator of a superseding notice 

of delegation submitted by such designated representative or 

alternate designated representative, as appropriate. The 

superseding notice of delegation may replace any previously 
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identified agent, add a new agent, or eliminate entirely any 

delegation of authority.

(e) Any electronic submission covered by the certification 

in paragraph (c)(4)(i) of this section and made in accordance 

with a notice of delegation effective under paragraph (d) of 

this section shall be deemed to be an electronic submission by 

the designated representative or alternate designated

representative submitting such notice of delegation.

(f) A notice of delegation submitted under paragraph (c) of 

this section or § 97.518(c) that complies with the provisions of 

paragraph (c) of this section except that it contains the terms

“40 CFR 97.518(d)” and “40 CFR 97.518” in place of the terms “40 

CFR 97.818(d)” and “40 CFR 97.818”, respectively, in the 

required certification statements will be considered a valid 

notice of delegation submitted under paragraph (c) of this 

section, and the certification statements included in such 

notice of delegation will be interpreted for purposes of this 

subpart as if the terms “40 CFR 97.818(d)” and “40 CFR 97.818” 

appeared in place of the terms “40 CFR 97.518(d)” and “40 CFR 

97.518”, respectively.

§ 97.819 [Reserved]

§ 97.820 Establishment of compliance accounts, assurance 

accounts, and general accounts.
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(a) Compliance accounts. Upon receipt of a complete 

certificate of representation under § 97.816, the Administrator 

will establish a compliance account for the CSAPR NOX Ozone 

Season Group 2 source for which the certificate of 

representation was submitted, unless the source already has a 

compliance account. The designated representative and any 

alternate designated representative of the source shall be the 

authorized account representative and the alternate authorized 

account representative respectively of the compliance account.

(b) Assurance accounts. The Administrator will establish 

assurance accounts for certain owners and operators and States 

in accordance with § 97.825(b)(3).

(c) General accounts. (1) Application for general account. 

(i) Any person may apply to open a general account, for the 

purpose of holding and transferring CSAPR NOX Ozone Season Group 

2 allowances, by submitting to the Administrator a complete 

application for a general account. Such application shall 

designate one and only one authorized account representative and 

may designate one and only one alternate authorized account 

representative who may act on behalf of the authorized account 

representative.

(A) The authorized account representative and alternate 

authorized account representative shall be selected by an 
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agreement binding on the persons who have an ownership interest 

with respect to CSAPR NOX Ozone Season Group 2 allowances held in 

the general account.

(B) The agreement by which the alternate authorized account 

representative is selected shall include a procedure for 

authorizing the alternate authorized account representative to 

act in lieu of the authorized account representative.

(ii) A complete application for a general account shall 

include the following elements in a format prescribed by the 

Administrator:

(A) Name, mailing address, e-mail address (if any),

telephone number, and facsimile transmission number (if any) of 

the authorized account representative and any alternate 

authorized account representative;

(B) An identifying name for the general account;

(C) A list of all persons subject to a binding agreement 

for the authorized account representative and any alternate 

authorized account representative to represent their ownership 

interest with respect to the CSAPR NOX Ozone Season Group 2 

allowances held in the general account;

(D) The following certification statement by the authorized 

account representative and any alternate authorized account 

representative: “I certify that I was selected as the authorized 
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account representative or the alternate authorized account 

representative, as applicable, by an agreement that is binding 

on all persons who have an ownership interest with respect to 

CSAPR NOX Ozone Season Group 2 allowances held in the general 

account. I certify that I have all the necessary authority to 

carry out my duties and responsibilities under the CSAPR NOX

Ozone Season Group 2 Trading Program on behalf of such persons 

and that each such person shall be fully bound by my 

representations, actions, inactions, or submissions and by any 

decision or order issued to me by the Administrator regarding 

the general account.”

(E) The signature of the authorized account representative 

and any alternate authorized account representative and the 

dates signed.

(iii) Unless otherwise required by the Administrator, 

documents of agreement referred to in the application for a 

general account shall not be submitted to the Administrator. The 

Administrator shall not be under any obligation to review or 

evaluate the sufficiency of such documents, if submitted.

(iv) An application for a general account under paragraph 

(c)(1) of this section or § 97.520(c)(1) that complies with the 

provisions of paragraph (c)(1) of this section except that it 

contains the phrase “TR NOX Ozone Season” in place of the phrase 
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“CSAPR NOX Ozone Season Group 2” in the required certification

statement will be considered a complete application for a 

general account under paragraph (c)(1) of this section, and the 

certification statement included in such application for a 

general account will be interpreted for purposes of this subpart 

as if the phrase “CSAPR NOX Ozone Season Group 2” appeared in 

place of the phrase “TR NOX Ozone Season”.

(2) Authorization of authorized account representative and 

alternate authorized account representative. (i) Upon receipt by 

the Administrator of a complete application for a general 

account under paragraph (c)(1) of this section, the 

Administrator will establish a general account for the person or 

persons for whom the application is submitted, and upon and 

after such receipt by the Administrator:

(A) The authorized account representative of the general 

account shall be authorized and shall represent and, by his or 

her representations, actions, inactions, or submissions, legally 

bind each person who has an ownership interest with respect to 

CSAPR NOX Ozone Season Group 2 allowances held in the general 

account in all matters pertaining to the CSAPR NOX Ozone Season 

Group 2 Trading Program, notwithstanding any agreement between 

the authorized account representative and such person.
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(B) Any alternate authorized account representative shall 

be authorized, and any representation, action, inaction, or 

submission by any alternate authorized account representative 

shall be deemed to be a representation, action, inaction, or 

submission by the authorized account representative.

(C) Each person who has an ownership interest with respect 

to CSAPR NOX Ozone Season Group 2 allowances held in the general 

account shall be bound by any decision or order issued to the 

authorized account representative or alternate authorized 

account representative by the Administrator regarding the 

general account.

(ii) Except as provided in paragraph (c)(5) of this section 

concerning delegation of authority to make submissions, each 

submission concerning the general account shall be made, signed, 

and certified by the authorized account representative or any 

alternate authorized account representative for the persons 

having an ownership interest with respect to CSAPR NOX Ozone 

Season Group 2 allowances held in the general account. Each such 

submission shall include the following certification statement 

by the authorized account representative or any alternate 

authorized account representative: “I am authorized to make this 

submission on behalf of the persons having an ownership interest 

with respect to the CSAPR NOX Ozone Season Group 2 allowances 
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held in the general account. I certify under penalty of law that 

I have personally examined, and am familiar with, the statements 

and information submitted in this document and all its 

attachments. Based on my inquiry of those individuals with 

primary responsibility for obtaining the information, I certify 

that the statements and information are to the best of my 

knowledge and belief true, accurate, and complete. I am aware 

that there are significant penalties for submitting false 

statements and information or omitting required statements and 

information, including the possibility of fine or imprisonment.”

(iii) Except in this section, whenever the term “authorized 

account representative” is used in this subpart, the term shall 

be construed to include the authorized account representative or 

any alternate authorized account representative.

(iv) A certification statement submitted in accordance with 

paragraph (c)(2)(ii) of this section that contains the phrase 

“TR NOX Ozone Season” will be interpreted for purposes of this 

subpart as if the phrase “CSAPR NOX Ozone Season Group 2” 

appeared in place of the phrase “TR NOX Ozone Season”.

(3) Changing authorized account representative and 

alternate authorized account representative; changes in persons 

with ownership interest. (i) The authorized account 

representative of a general account may be changed at any time 
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upon receipt by the Administrator of a superseding complete 

application for a general account under paragraph (c)(1) of this 

section. Notwithstanding any such change, all representations, 

actions, inactions, and submissions by the previous authorized 

account representative before the time and date when the 

Administrator receives the superseding application for a general 

account shall be binding on the new authorized account 

representative and the persons with an ownership interest with 

respect to the CSAPR NOX Ozone Season Group 2 allowances in the 

general account.

(ii) The alternate authorized account representative of a 

general account may be changed at any time upon receipt by the 

Administrator of a superseding complete application for a 

general account under paragraph (c)(1) of this section. 

Notwithstanding any such change, all representations, actions, 

inactions, and submissions by the previous alternate authorized 

account representative before the time and date when the 

Administrator receives the superseding application for a general 

account shall be binding on the new alternate authorized account 

representative, the authorized account representative, and the 

persons with an ownership interest with respect to the CSAPR NOX

Ozone Season Group 2 allowances in the general account.
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(iii)(A) In the event a person having an ownership interest 

with respect to CSAPR NOX Ozone Season Group 2 allowances in the 

general account is not included in the list of such persons in 

the application for a general account, such person shall be 

deemed to be subject to and bound by the application for a 

general account, the representation, actions, inactions, and 

submissions of the authorized account representative and any 

alternate authorized account representative of the account, and 

the decisions and orders of the Administrator, as if the person 

were included in such list.

(B) Within 30 days after any change in the persons having 

an ownership interest with respect to NOX Ozone Season Group 2 

allowances in the general account, including the addition or 

removal of a person, the authorized account representative or 

any alternate authorized account representative shall submit a 

revision to the application for a general account amending the 

list of persons having an ownership interest with respect to the 

CSAPR NOX Ozone Season Group 2 allowances in the general account 

to include the change.

(4) Objections concerning authorized account representative 

and alternate authorized account representative. (i) Once a 

complete application for a general account under paragraph 

(c)(1) of this section has been submitted and received, the 
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Administrator will rely on the application unless and until a 

superseding complete application for a general account under 

paragraph (c)(1) of this section is received by the 

Administrator.

(ii) Except as provided in paragraph (c)(4)(i) of this 

section, no objection or other communication submitted to the 

Administrator concerning the authorization, or any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative of a general account shall affect any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative or the finality of any decision or order 

by the Administrator under the CSAPR NOX Ozone Season Group 2 

Trading Program.

(iii) The Administrator will not adjudicate any private 

legal dispute concerning the authorization or any 

representation, action, inaction, or submission of the 

authorized account representative or any alternate authorized 

account representative of a general account, including private 

legal disputes concerning the proceeds of CSAPR NOX Ozone Season 

Group 2 allowance transfers.
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(5) Delegation by authorized account representative and 

alternate authorized account representative. (i) An authorized 

account representative of a general account may delegate, to one 

or more natural persons, his or her authority to make an 

electronic submission to the Administrator provided for or 

required under this subpart.

(ii) An alternate authorized account representative of a 

general account may delegate, to one or more natural persons, 

his or her authority to make an electronic submission to the 

Administrator provided for or required under this subpart.

(iii) In order to delegate authority to a natural person to 

make an electronic submission to the Administrator in accordance 

with paragraph (c)(5)(i) or (ii) of this section, the authorized 

account representative or alternate authorized account 

representative, as appropriate, must submit to the Administrator 

a notice of delegation, in a format prescribed by the 

Administrator, that includes the following elements:

(A) The name, address, e-mail address, telephone number, 

and facsimile transmission number (if any) of such authorized 

account representative or alternate authorized account 

representative;
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(B) The name, address, e-mail address, telephone number, 

and facsimile transmission number (if any) of each such natural 

person (referred to in this section as an “agent”);

(C) For each such natural person, a list of the type or 

types of electronic submissions under paragraph (c)(5)(i) or 

(ii) of this section for which authority is delegated to him or 

her;

(D) The following certification statement by such 

authorized account representative or alternate authorized 

account representative: “I agree that any electronic submission 

to the Administrator that is made by an agent identified in this 

notice of delegation and of a type listed for such agent in this 

notice of delegation and that is made when I am an authorized 

account representative or alternate authorized account 

representative, as appropriate, and before this notice of 

delegation is superseded by another notice of delegation under 

40 CFR 97.820(c)(5)(iv) shall be deemed to be an electronic 

submission by me.”; and

(E) The following certification statement by such 

authorized account representative or alternate authorized 

account representative: “Until this notice of delegation is 

superseded by another notice of delegation under 40 CFR 

97.820(c)(5)(iv), I agree to maintain an e-mail account and to 
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notify the Administrator immediately of any change in my e-mail 

address unless all delegation of authority by me under 40 CFR 

97.820(c)(5) is terminated.”.

(iv) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section shall be effective, with regard to 

the authorized account representative or alternate authorized 

account representative identified in such notice, upon receipt 

of such notice by the Administrator and until receipt by the 

Administrator of a superseding notice of delegation submitted by 

such authorized account representative or alternate authorized 

account representative, as appropriate. The superseding notice 

of delegation may replace any previously identified agent, add a 

new agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification 

in paragraph (c)(5)(iii)(D) of this section and made in 

accordance with a notice of delegation effective under paragraph 

(c)(5)(iv) of this section shall be deemed to be an electronic 

submission by the authorized account representative or alternate 

authorized account representative submitting such notice of 

delegation.

(vi) A notice of delegation submitted under paragraph 

(c)(5)(iii) of this section or § 97.520(c)(5)(iii) that complies 

with the provisions of paragraph (c)(5)(iii) of this section 
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except that it contains the terms “40 CFR 97.520(c)(5)(iv)” and 

“40 CFR 97.520(c)(5)” in place of the terms “40 CFR 

97.820(c)(5)(iv)” and “40 CFR 97.820(c)(5)”, respectively, in 

the required certification statements will be considered a valid 

notice of delegation submitted under paragraph (c)(5)(iii) of 

this section, and the certification statements included in such 

notice of delegation will be interpreted for purposes of this 

subpart as if the terms “40 CFR 97.820(c)(5)(iv)” and “40 CFR 

97.820(c)(5)” appeared in place of the terms “40 CFR 

97.520(c)(5)(iv)” and “40 CFR 97.520(c)(5)”, respectively.

(6) Closing a general account. (i) The authorized account 

representative or alternate authorized account representative of 

a general account may submit to the Administrator a request to 

close the account. Such request shall include a correctly 

submitted CSAPR NOX Ozone Season Group 2 allowance transfer under 

§ 97.822 for any CSAPR NOX Ozone Season Group 2 allowances in the 

account to one or more other Allowance Management System 

accounts.

(ii) If a general account has no CSAPR NOX Ozone Season 

Group 2 allowance transfers to or from the account for a 12-

month period or longer and does not contain any CSAPR NOX Ozone 

Season Group 2 allowances, the Administrator may notify the 

authorized account representative for the account that the
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account will be closed after 30 days after the notice is sent. 

The account will be closed after the 30-day period unless, 

before the end of the 30-day period, the Administrator receives 

a correctly submitted CSAPR NOX Ozone Season Group 2 allowance 

transfer under § 97.822 to the account or a statement submitted 

by the authorized account representative or alternate authorized 

account representative demonstrating to the satisfaction of the 

Administrator good cause as to why the account should not be 

closed.

(d) Account identification. The Administrator will assign a 

unique identifying number to each account established under 

paragraph (a), (b), or (c) of this section.

(e) Responsibilities of authorized account representative 

and alternate authorized account representative. After the 

establishment of a compliance account or general account, the 

Administrator will accept or act on a submission pertaining to 

the account, including, but not limited to, submissions 

concerning the deduction or transfer of CSAPR NOX Ozone Season 

Group 2 allowances in the account, only if the submission has 

been made, signed, and certified in accordance with §§ 97.814(a) 

and 97.818 or paragraphs (c)(2)(ii) and (5) of this section.

§ 97.821 Recordation of CSAPR NOX Ozone Season Group 2 allowance 

allocations and auction results.
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(a) By January 1, 2017, the Administrator will record in 

each CSAPR NOX Ozone Season Group 2 source’s compliance account 

the CSAPR NOX Ozone Season Group 2 allowances allocated to the 

CSAPR NOX Ozone Season Group 2 units at the source in accordance 

with § 97.811(a) for the control period in 2017.

(b) By January 1, 2017, the Administrator will record in 

each CSAPR NOX Ozone Season Group 2 source’s compliance account 

the CSAPR NOX Ozone Season Group 2 allowances allocated to the 

CSAPR NOX Ozone Season Group 2 units at the source in accordance 

with § 97.811(a) for the control period in 2018, unless the 

State in which the source is located notifies the Administrator 

in writing by December 15, 2016 of the State’s intent to submit 

to the Administrator a complete SIP revision by April 1, 2017 

meeting the requirements of § 52.38(b)(7)(i) through (iv) of 

this chapter.

(1) If, by April 1, 2017 the State does not submit to the 

Administrator such complete SIP revision, the Administrator will 

record by April 15, 2017 in each CSAPR NOX Ozone Season Group 2 

source’s compliance account the CSAPR NOX Ozone Season Group 2 

allowances allocated to the CSAPR NOX Ozone Season Group 2 units 

at the source in accordance with § 97.811(a) for the control 

period in 2018.
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(2) If the State submits to the Administrator by April 1, 

2017 and the Administrator approves by October 1, 2017 such 

complete SIP revision, the Administrator will record by October 

1, 2017 in each CSAPR NOX Ozone Season Group 2 source’s 

compliance account the CSAPR NOX Ozone Season Group 2 allowances 

allocated to the CSAPR NOX Ozone Season Group 2 units at the 

source as provided in such approved, complete SIP revision for 

the control period in 2018.

(3) If the State submits to the Administrator by April 1, 

2017 and the Administrator does not approve by October 1, 2017 

such complete SIP revision, the Administrator will record by 

October 1, 2017 in each CSAPR NOX Ozone Season Group 2 source’s 

compliance account the CSAPR NOX Ozone Season Group 2 allowances 

allocated to the CSAPR NOX Ozone Season Group 2 units at the 

source in accordance with § 97.811(a) for the control period in 

2018.

(c) By July 1, 2018, the Administrator will record in each 

CSAPR NOX Ozone Season Group 2 source’s compliance account the 

CSAPR NOX Ozone Season Group 2 allowances allocated to the CSAPR 

NOX Ozone Season Group 2 units at the source, or in each 

appropriate Allowance Management System account the CSAPR NOX

Ozone Season Group 2 allowances auctioned to CSAPR NOX Ozone 

Season Group 2 units, in accordance with § 97.811(a), or with a 
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SIP revision approved under § 52.38(b)(6), (8), or (9) of this 

chapter, for the control periods in 2019 and 2020.

(d) By July 1, 2019, the Administrator will record in each 

CSAPR NOX Ozone Season Group 2 source’s compliance account the 

CSAPR NOX Ozone Season Group 2 allowances allocated to the CSAPR 

NOX Ozone Season Group 2 units at the source, or in each 

appropriate Allowance Management System account the CSAPR NOX

Ozone Season Group 2 allowances auctioned to CSAPR NOX Ozone 

Season Group 2 units, in accordance with § 97.811(a), or with a 

SIP revision approved under § 52.38(b)(6), (8), or (9) of this 

chapter, for the control periods in 2021 and 2022.

(e) By July 1, 2020, the Administrator will record in each 

CSAPR NOX Ozone Season Group 2 source’s compliance account the 

CSAPR NOX Ozone Season Group 2 allowances allocated to the CSAPR 

NOX Ozone Season Group 2 units at the source, or in each 

appropriate Allowance Management System account the CSAPR NOX

Ozone Season Group 2 allowances auctioned to CSAPR NOX Ozone 

Season Group 2 units, in accordance with § 97.811(a), or with a 

SIP revision approved under § 52.38(b)(6), (8), or (9) of this 

chapter, for the control periods in 2023 and 2024.

(f) By July 1, 2021 and July 1 of each year thereafter, the 

Administrator will record in each CSAPR NOX Ozone Season Group 2 

source’s compliance account the CSAPR NOX Ozone Season Group 2 
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allowances allocated to the CSAPR NOX Ozone Season Group 2 units 

at the source, or in each appropriate Allowance Management 

System account the CSAPR NOX Ozone Season Group 2 allowances 

auctioned to CSAPR NOX Ozone Season Group 2 units, in accordance 

with § 97.811(a), or with a SIP revision approved under 

§ 52.38(b)(6), (8), or (9) of this chapter, for the control 

period in the fourth year after the year of the applicable 

recordation deadline under this paragraph.

(g) By August 1, 2017 and August 1 of each year thereafter, 

the Administrator will record in each CSAPR NOX Ozone Season 

Group 2 source’s compliance account the CSAPR NOX Ozone Season 

Group 2 allowances allocated to the CSAPR NOX Ozone Season Group 

2 units at the source, or in each appropriate Allowance 

Management System account the CSAPR NOX Ozone Season Group 2 

allowances auctioned to CSAPR NOX Ozone Season Group 2 units, in 

accordance with § 97.812(a)(2) through (8) and (12), or with a 

SIP revision approved under § 52.38(b)(6), (8), or (9) of this 

chapter, for the control period in the year of the applicable 

recordation deadline under this paragraph.

(h) By August 1, 2017 and August 1 of each year thereafter, 

the Administrator will record in each CSAPR NOX Ozone Season 

Group 2 source’s compliance account the CSAPR NOX Ozone Season 

Group 2 allowances allocated to the CSAPR NOX Ozone Season Group 
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2 units at the source in accordance with § 97.812(b)(2) through 

(8) and (12) for the control period in the year of the 

applicable recordation deadline under this paragraph.

(i) By February 15, 2018 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR NOX Ozone 

Season Group 2 source’s compliance account the CSAPR NOX Ozone 

Season Group 2 allowances allocated to the CSAPR NOX Ozone Season 

Group 2 units at the source in accordance with § 97.812(a)(9) 

through (12) for the control period in the year before the year 

of the applicable recordation deadline under this paragraph.

(j) By February 15, 2018 and February 15 of each year 

thereafter, the Administrator will record in each CSAPR NOX Ozone 

Season Group 2 source’s compliance account the CSAPR NOX Ozone 

Season Group 2 allowances allocated to the CSAPR NOX Ozone Season 

Group 2 units at the source in accordance with § 97.812(b)(9) 

through (12) for the control period in the year before the year 

of the applicable recordation deadline under this paragraph.

(k) By the date 15 days after the date on which any 

allocation or auction results, other than an allocation or 

auction results described in paragraphs (a) through (j) of this 

section, of CSAPR NOX Ozone Season Group 2 allowances to a 

recipient is made by or are submitted to the Administrator in 

accordance with § 97.811 or § 97.812 or with a SIP revision 
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approved under § 52.38(b)(6), (8), or (9) of this chapter, the 

Administrator will record such allocation or auction results in 

the appropriate Allowance Management System account.

(l) When recording the allocation or auction of CSAPR NOX

Ozone Season Group 2 allowances to a CSAPR NOX Ozone Season Group 

2 unit or other entity in an Allowance Management System 

account, the Administrator will assign each CSAPR NOX Ozone 

Season Group 2 allowance a unique identification number that 

will include digits identifying the year of the control period 

for which the CSAPR NOX Ozone Season Group 2 allowance is 

allocated or auctioned.

§ 97.822 Submission of CSAPR NOX Ozone Season Group 2 allowance 

transfers.

(a) An authorized account representative seeking 

recordation of a CSAPR NOX Ozone Season Group 2 allowance 

transfer shall submit the transfer to the Administrator.

(b) A CSAPR NOX Ozone Season Group 2 allowance transfer 

shall be correctly submitted if:

(1) The transfer includes the following elements, in a 

format prescribed by the Administrator:

(i) The account numbers established by the Administrator 

for both the transferor and transferee accounts;
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(ii) The serial number of each CSAPR NOX Ozone Season Group 

2 allowance that is in the transferor account and is to be 

transferred; and

(iii) The name and signature of the authorized account 

representative of the transferor account and the date signed; 

and

(2) When the Administrator attempts to record the transfer, 

the transferor account includes each CSAPR NOX Ozone Season Group 

2 allowance identified by serial number in the transfer.

§ 97.823 Recordation of CSAPR NOX Ozone Season Group 2 allowance 

transfers.

(a) Within 5 business days (except as provided in paragraph 

(b) of this section) of receiving a CSAPR NOX Ozone Season Group 

2 allowance transfer that is correctly submitted under § 97.822, 

the Administrator will record a CSAPR NOX Ozone Season Group 2 

allowance transfer by moving each CSAPR NOX Ozone Season Group 2 

allowance from the transferor account to the transferee account 

as specified in the transfer.

(b) A CSAPR NOX Ozone Season Group 2 allowance transfer to 

or from a compliance account that is submitted for recordation 

after the allowance transfer deadline for a control period and 

that includes any CSAPR NOX Ozone Season Group 2 allowances 

allocated or auctioned for any control period before such 
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allowance transfer deadline will not be recorded until after the 

Administrator completes the deductions from such compliance 

account under § 97.824 for the control period immediately before 

such allowance transfer deadline.

(c) Where a CSAPR NOX Ozone Season Group 2 allowance 

transfer is not correctly submitted under § 97.822, the 

Administrator will not record such transfer.

(d) Within 5 business days of recordation of a CSAPR NOX

Ozone Season Group 2 allowance transfer under paragraphs (a) and 

(b) of the section, the Administrator will notify the authorized 

account representatives of both the transferor and transferee 

accounts.

(e) Within 10 business days of receipt of a CSAPR NOX Ozone 

Season Group 2 allowance transfer that is not correctly 

submitted under § 97.822, the Administrator will notify the 

authorized account representatives of both accounts subject to 

the transfer of:

(1) A decision not to record the transfer, and

(2) The reasons for such non-recordation.

§ 97.824 Compliance with CSAPR NOX Ozone Season Group 2 emissions 

limitation.

(a) Availability for deduction for compliance. CSAPR NOX

Ozone Season Group 2 allowances are available to be deducted for 
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compliance with a source’s CSAPR NOX Ozone Season Group 2 

emissions limitation for a control period in a given year only 

if the CSAPR NOX Ozone Season Group 2 allowances:

(1) Were allocated or auctioned for such control period or 

a control period in a prior year; and

(2) Are held in the source’s compliance account as of the 

allowance transfer deadline for such control period.

(b) Deductions for compliance. After the recordation, in 

accordance with § 97.823, of CSAPR NOX Ozone Season Group 2 

allowance transfers submitted by the allowance transfer deadline 

for a control period in a given year, the Administrator will 

deduct from each source’s compliance account CSAPR NOX Ozone 

Season Group 2 allowances available under paragraph (a) of this 

section in order to determine whether the source meets the CSAPR 

NOX Ozone Season Group 2 emissions limitation for such control 

period, as follows:

(1) Until the amount of CSAPR NOX Ozone Season Group 2 

allowances deducted equals the number of tons of total NOX

emissions from all CSAPR NOX Ozone Season Group 2 units at the 

source for such control period; or

(2) If there are insufficient CSAPR NOX Ozone Season Group 2 

allowances to complete the deductions in paragraph (b)(1) of 

this section, until no more CSAPR NOX Ozone Season Group 2 
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allowances available under paragraph (a) of this section remain 

in the compliance account.

(c)(1) Identification of CSAPR NOX Ozone Season Group 2 

allowances by serial number. The authorized account 

representative for a source’s compliance account may request 

that specific CSAPR NOX Ozone Season Group 2 allowances, 

identified by serial number, in the compliance account be 

deducted for emissions or excess emissions for a control period 

in a given year in accordance with paragraph (b) or (d) of this 

section. In order to be complete, such request shall be 

submitted to the Administrator by the allowance transfer 

deadline for such control period and include, in a format 

prescribed by the Administrator, the identification of the CSAPR 

NOX Ozone Season Group 2 source and the appropriate serial 

numbers.

(2) First-in, first-out. The Administrator will deduct 

CSAPR NOX Ozone Season Group 2 allowances under paragraph (b) or 

(d) of this section from the source’s compliance account in 

accordance with a complete request under paragraph (c)(1) of 

this section or, in the absence of such request or in the case 

of identification of an insufficient amount of CSAPR NOX Ozone 

Season Group 2 allowances in such request, on a first-in, firstout accounting basis in the following order:
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(i) Any CSAPR NOX Ozone Season Group 2 allowances that were 

recorded in the compliance account pursuant to § 97.821 and not 

transferred out of the compliance account, in the order of 

recordation; and then

(ii) Any other CSAPR NOX Ozone Season Group 2 allowances 

that were transferred to and recorded in the compliance account 

pursuant to this subpart or that were recorded in the compliance 

account pursuant to § 97.526(c), in the order of recordation.

(d) Deductions for excess emissions. After making the 

deductions for compliance under paragraph (b) of this section 

for a control period in a year in which the CSAPR NOX Ozone 

Season Group 2 source has excess emissions, the Administrator 

will deduct from the source’s compliance account an amount of 

CSAPR NOX Ozone Season Group 2 allowances, allocated or auctioned 

for a control period in a prior year or the control period in 

the year of the excess emissions or in the immediately following 

year, equal to two times the number of tons of the source’s 

excess emissions.

(e) Recordation of deductions. The Administrator will 

record in the appropriate compliance account all deductions from 

such an account under paragraphs (b) and (d) of this section.

§ 97.825 Compliance with CSAPR NOX Ozone Season Group 2 assurance 

provisions.
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(a) Availability for deduction. CSAPR NOX Ozone Season Group 

2 allowances are available to be deducted for compliance with 

the CSAPR NOX Ozone Season Group 2 assurance provisions for a 

control period in a given year by the owners and operators of a 

group of one or more base CSAPR NOX Ozone Season Group 2 sources 

and units in a State (and Indian country within the borders of 

such State) only if the CSAPR NOX Ozone Season Group 2 

allowances:

(1) Were allocated or auctioned for a control period in a 

prior year or the control period in the given year or in the 

immediately following year; and

(2) Are held in the assurance account, established by the 

Administrator for such owners and operators of such group of 

base CSAPR NOX Ozone Season Group 2 sources and units in such 

State (and Indian country within the borders of such State) 

under paragraph (b)(3) of this section, as of the deadline 

established in paragraph (b)(4) of this section.

(b) Deductions for compliance. The Administrator will 

deduct CSAPR NOX Ozone Season Group 2 allowances available under 

paragraph (a) of this section for compliance with the CSAPR NOX

Ozone Season Group 2 assurance provisions for a State for a 

control period in a given year in accordance with the following 

procedures:
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(1) By June 1, 2018 and June 1 of each year thereafter, the 

Administrator will:

(i) Calculate, for each State (and Indian country within 

the borders of such State), the total NOX emissions from all base 

CSAPR NOX Ozone Season Group 2 units at base CSAPR NOX Ozone 

Season Group 2 sources in the State (and Indian country within 

the borders of such State) during the control period in the year 

before the year of this calculation deadline and the amount, if 

any, by which such total NOX emissions exceed the State assurance 

level as described in § 97.806(c)(2)(iii); and

(ii) Promulgate a notice of data availability of the 

results of the calculations required in paragraph (b)(1)(i) of 

this section, including separate calculations of the NOX

emissions from each base CSAPR NOX Ozone Season Group 2 source.

(2) For each notice of data availability required in 

paragraph (b)(1)(ii) of this section and for any State (and 

Indian country within the borders of such State) identified in 

such notice as having base CSAPR NOX Ozone Season Group 2 units 

with total NOX emissions exceeding the State assurance level for 

a control period in a given year, as described in 

§ 97.806(c)(2)(iii):

(i) By July 1 immediately after the promulgation of such 

notice, the designated representative of each base CSAPR NOX
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Ozone Season Group 2 source in each such State (and Indian 

country within the borders of such State) shall submit a 

statement, in a format prescribed by the Administrator, 

providing for each base CSAPR NOX Ozone Season Group 2 unit (if 

any) at the source that operates during, but is not allocated an 

amount of CSAPR NOX Ozone Season Group 2 allowances for, such 

control period, the unit’s allowable NOX emission rate for such 

control period and, if such rate is expressed in lb per mmBtu, 

the unit’s heat rate.

(ii) By August 1 immediately after the promulgation of such 

notice, the Administrator will calculate, for each such State 

(and Indian country within the borders of such State) and such 

control period and each common designated representative for 

such control period for a group of one or more base CSAPR NOX

Ozone Season Group 2 sources and units in the State (and Indian 

country within the borders of such State), the common designated 

representative’s share of the total NOX emissions from all base 

CSAPR NOX Ozone Season Group 2 units at base CSAPR NOX Ozone 

Season Group 2 sources in the State (and Indian country within 

the borders of such State), the common designated 

representative’s assurance level, and the amount (if any) of 

CSAPR NOX Ozone Season Group 2 allowances that the owners and 

operators of such group of sources and units must hold in 
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accordance with the calculation formula in § 97.806(c)(2)(i) and 

will promulgate a notice of data availability of the results of 

these calculations.

(iii) The Administrator will provide an opportunity for 

submission of objections to the calculations referenced by the 

notice of data availability required in paragraph (b)(2)(ii) of 

this section and the calculations referenced by the relevant 

notice of data availability required in paragraph (b)(1)(ii) of 

this section.

(A) Objections shall be submitted by the deadline specified 

in such notice and shall be limited to addressing whether the 

calculations referenced in the relevant notice required under 

paragraph (b)(1)(ii) of this section and referenced in the 

notice required under paragraph (b)(2)(ii) of this section are 

in accordance with § 97.806(c)(2)(iii), §§ 97.806(b) and 97.830 

through 97.835, the definitions of “common designated 

representative”, “common designated representative’s assurance 

level”, and “common designated representative’s share” in 

§ 97.802, and the calculation formula in § 97.806(c)(2)(i).

(B) The Administrator will adjust the calculations to the 

extent necessary to ensure that they are in accordance with the 

provisions referenced in paragraph (b)(2)(iii)(A) of this 

section. By October 1 immediately after the promulgation of such 
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notice, the Administrator will promulgate a notice of data 

availability of the calculations incorporating any adjustments 

that the Administrator determines to be necessary and the 

reasons for accepting or rejecting any objections submitted in 

accordance with paragraph (b)(2)(iii)(A) of this section.

(3) For any State (and Indian country within the borders of 

such State) referenced in each notice of data availability 

required in paragraph (b)(2)(iii)(B) of this section as having 

base CSAPR NOX Ozone Season Group 2 units with total NOX

emissions exceeding the State assurance level for a control 

period in a given year, the Administrator will establish one 

assurance account for each set of owners and operators 

referenced, in the notice of data availability required under 

paragraph (b)(2)(iii)(B) of this section, as all of the owners 

and operators of a group of base CSAPR NOX Ozone Season Group 2 

sources and units in the State (and Indian country within the 

borders of such State) having a common designated representative 

for such control period and as being required to hold CSAPR NOX

Ozone Season Group 2 allowances.

(4)(i) As of midnight of November 1 immediately after the 

promulgation of each notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section, the owners and 

operators described in paragraph (b)(3) of this section shall 
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hold in the assurance account established for them and for the 

appropriate base CSAPR NOX Ozone Season Group 2 sources, base 

CSAPR NOX Ozone Season Group 2 units, and State (and Indian 

country within the borders of such State) under paragraph (b)(3) 

of this section a total amount of CSAPR NOX Ozone Season Group 2 

allowances, available for deduction under paragraph (a) of this 

section, equal to the amount such owners and operators are 

required to hold with regard to such sources, units and State 

(and Indian country within the borders of such State) as 

calculated by the Administrator and referenced in such notice.

(ii) Notwithstanding the allowance-holding deadline 

specified in paragraph (b)(4)(i) of this section, if November 1 

is not a business day, then such allowance-holding deadline 

shall be midnight of the first business day thereafter.

(5) After November 1 (or the date described in paragraph 

(b)(4)(ii) of this section) immediately after the promulgation 

of each notice of data availability required in paragraph 

(b)(2)(iii)(B) of this section and after the recordation, in 

accordance with § 97.823, of CSAPR NOX Ozone Season Group 2 

allowance transfers submitted by midnight of such date, the 

Administrator will determine whether the owners and operators 

described in paragraph (b)(3) of this section hold, in the 

assurance account for the appropriate base CSAPR NOX Ozone Season 
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Group 2 sources, base CSAPR NOX Ozone Season Group 2 units, and 

State (and Indian country within the borders of such State) 

established under paragraph (b)(3) of this section, the amount 

of CSAPR NOX Ozone Season Group 2 allowances available under 

paragraph (a) of this section that the owners and operators are 

required to hold with regard to such sources, units, and State 

(and Indian country within the borders of such State) as 

calculated by the Administrator and referenced in the notice 

required in paragraph (b)(2)(iii)(B) of this section.

(6) Notwithstanding any other provision of this subpart and 

any revision, made by or submitted to the Administrator after 

the promulgation of the notice of data availability required in 

paragraph (b)(2)(iii)(B) of this section for a control period in 

a given year, of any data used in making the calculations 

referenced in such notice, the amounts of CSAPR NOX Ozone Season 

Group 2 allowances that the owners and operators are required to 

hold in accordance with § 97.806(c)(2)(i) for such control 

period shall continue to be such amounts as calculated by the 

Administrator and referenced in such notice required in 

paragraph (b)(2)(iii)(B) of this section, except as follows:

(i) If any such data are revised by the Administrator as a 

result of a decision in or settlement of litigation concerning 

such data on appeal under part 78 of this chapter of such 
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notice, or on appeal under section 307 of the Clean Air Act of a 

decision rendered under part 78 of this chapter on appeal of 

such notice, then the Administrator will use the data as so 

revised to recalculate the amounts of CSAPR NOX Ozone Season 

Group 2 allowances that owners and operators are required to 

hold in accordance with the calculation formula in 

§ 97.806(c)(2)(i) for such control period with regard to the 

base CSAPR NOX Ozone Season Group 2 sources, base CSAPR NOX Ozone 

Season Group 2 units, and State (and Indian country within the 

borders of such State) involved, provided that such litigation 

under part 78 of this chapter, or the proceeding under part 78 

of this chapter that resulted in the decision appealed in such 

litigation under section 307 of the Clean Air Act, was initiated 

no later than 30 days after promulgation of such notice required 

in paragraph (b)(2)(iii)(B) of this section.

(ii) If any such data are revised by the owners and 

operators of a base CSAPR NOX Ozone Season Group 2 source and 

base CSAPR NOX Ozone Season Group 2 unit whose designated 

representative submitted such data under paragraph (b)(2)(i) of 

this section, as a result of a decision in or settlement of 

litigation concerning such submission, then the Administrator 

will use the data as so revised to recalculate the amounts of 

CSAPR NOX Ozone Season Group 2 allowances that owners and 
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operators are required to hold in accordance with the 

calculation formula in § 97.806(c)(2)(i) for such control period 

with regard to the base CSAPR NOX Ozone Season Group 2 sources, 

base CSAPR NOX Ozone Season Group 2 units, and State (and Indian 

country within the borders of such State) involved, provided 

that such litigation was initiated no later than 30 days after 

promulgation of such notice required in paragraph (b)(2)(iii)(B) 

of this section.

(iii) If the revised data are used to recalculate, in 

accordance with paragraphs (b)(6)(i) and (ii) of this section, 

the amount of CSAPR NOX Ozone Season Group 2 allowances that the 

owners and operators are required to hold for such control 

period with regard to the base CSAPR NOX Ozone Season Group 2 

sources, base CSAPR NOX Ozone Season Group 2 units, and State 

(and Indian country within the borders of such State) involved—

(A) Where the amount of CSAPR NOX Ozone Season Group 2 

allowances that the owners and operators are required to hold 

increases as a result of the use of all such revised data, the 

Administrator will establish a new, reasonable deadline on which 

the owners and operators shall hold the additional amount of 

CSAPR NOX Ozone Season Group 2 allowances in the assurance 

account established by the Administrator for the appropriate 

base CSAPR NOX Ozone Season Group 2 sources, base CSAPR NOX Ozone 
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Season Group 2 units, and State (and Indian country within the 

borders of such State) under paragraph (b)(3) of this section. 

The owners’ and operators’ failure to hold such additional 

amount, as required, before the new deadline shall not be a 

violation of the Clean Air Act. The owners’ and operators’ 

failure to hold such additional amount, as required, as of the 

new deadline shall be a violation of the Clean Air Act. Each 

CSAPR NOX Ozone Season Group 2 allowance that the owners and 

operators fail to hold as required as of the new deadline, and 

each day in such control period, shall be a separate violation 

of the Clean Air Act.

(B) For the owners and operators for which the amount of 

CSAPR NOX Ozone Season Group 2 allowances required to be held 

decreases as a result of the use of all such revised data, the 

Administrator will record, in all accounts from which CSAPR NOX

Ozone Season Group 2 allowances were transferred by such owners 

and operators for such control period to the assurance account 

established by the Administrator for the appropriate base CSAPR 

NOX Ozone Season Group 2 sources, base CSAPR NOX Ozone Season 

Group 2 units, and State (and Indian country within the borders 

of such State) under paragraph (b)(3) of this section, a total 

amount of the CSAPR NOX Ozone Season Group 2 allowances held in 

such assurance account equal to the amount of the decrease. If 
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CSAPR NOX Ozone Season Group 2 allowances were transferred to 

such assurance account from more than one account, the amount of 

CSAPR NOX Ozone Season Group 2 allowances recorded in each such 

transferor account will be in proportion to the percentage of 

the total amount of CSAPR NOX Ozone Season Group 2 allowances 

transferred to such assurance account for such control period 

from such transferor account.

(C) Each CSAPR NOX Ozone Season Group 2 allowance held under 

paragraph (b)(6)(iii)(A) of this section as a result of 

recalculation of requirements under the CSAPR NOX Ozone Season 

Group 2 assurance provisions for such control period must be a 

CSAPR NOX Ozone Season Group 2 allowance allocated for a control 

period in a year before or the year immediately following, or in 

the same year as, the year of such control period.

§ 97.826 Banking.

(a) A CSAPR NOX Ozone Season Group 2 allowance may be banked 

for future use or transfer in a compliance account or a general 

account in accordance with paragraph (b) of this section.

(b) Any CSAPR NOX Ozone Season Group 2 allowance that is 

held in a compliance account or a general account will remain in 

such account unless and until the CSAPR NOX Ozone Season Group 2 

allowance is deducted or transferred under § 97.811(c), 

§ 97.823, § 97.824, § 97.825, § 97.827, or § 97.828.
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§ 97.827 Account error.

The Administrator may, at his or her sole discretion and on 

his or her own motion, correct any error in any Allowance 

Management System account. Within 10 business days of making 

such correction, the Administrator will notify the authorized 

account representative for the account.

§ 97.828 Administrator’s action on submissions.

(a) The Administrator may review and conduct independent 

audits concerning any submission under the CSAPR NOX Ozone Season 

Group 2 Trading Program and make appropriate adjustments of the 

information in the submission.

(b) The Administrator may deduct CSAPR NOX Ozone Season 

Group 2 allowances from or transfer CSAPR NOX Ozone Season Group 

2 allowances to a compliance account or an assurance account, 

based on the information in a submission, as adjusted under 

paragraph (a) of this section, and record such deductions and 

transfers.

§ 97.829 [Reserved]

§ 97.830 General monitoring, recordkeeping, and reporting 

requirements.

The owners and operators, and to the extent applicable, the 

designated representative, of a CSAPR NOX Ozone Season Group 2 

unit, shall comply with the monitoring, recordkeeping, and 
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reporting requirements as provided in this subpart and subpart H 

of part 75 of this chapter. For purposes of applying such 

requirements, the definitions in § 97.802 and in § 72.2 of this 

chapter shall apply, the terms “affected unit,” “designated 

representative,” and “continuous emission monitoring system” (or 

“CEMS”) in part 75 of this chapter shall be deemed to refer to 

the terms “CSAPR NOX Ozone Season Group 2 unit,” “designated 

representative,” and “continuous emission monitoring system” (or 

“CEMS”) respectively as defined in § 97.802, and the term “newly 

affected unit” shall be deemed to mean “newly affected CSAPR NOX

Ozone Season Group 2 unit”. The owner or operator of a unit that 

is not a CSAPR NOX Ozone Season Group 2 unit but that is 

monitored under § 75.72(b)(2)(ii) of this chapter shall comply 

with the same monitoring, recordkeeping, and reporting 

requirements as a CSAPR NOX Ozone Season Group 2 unit.

(a) Requirements for installation, certification, and data 

accounting. The owner or operator of each CSAPR NOX Ozone Season 

Group 2 unit shall:

(1) Install all monitoring systems required under this 

subpart for monitoring NOX mass emissions and individual unit 

heat input (including all systems required to monitor NOX

emission rate, NOX concentration, stack gas moisture content, 

stack gas flow rate, CO2 or O2 concentration, and fuel flow rate, 
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as applicable, in accordance with §§ 75.71 and 75.72 of this 

chapter);

(2) Successfully complete all certification tests required 

under § 97.831 and meet all other requirements of this subpart 

and part 75 of this chapter applicable to the monitoring systems 

under paragraph (a)(1) of this section; and

(3) Record, report, and quality-assure the data from the 

monitoring systems under paragraph (a)(1) of this section.

(b) Compliance deadlines. Except as provided in paragraph 

(e) of this section, the owner or operator of a CSAPR NOX Ozone 

Season Group 2 unit shall meet the monitoring system 

certification and other requirements of paragraphs (a)(1) and 

(2) of this section on or before the latest of the following 

dates and shall record, report, and quality-assure the data from 

the monitoring systems under paragraph (a)(1) of this section on 

and after the latest of the following dates:

(1) May 1, 2017;

(2) 180 calendar days after the date on which the unit 

commences commercial operation; or

(3) Where data for the unit are reported on a control 

period basis under § 97.834(d)(1)(ii)(B), and where the 

compliance date under paragraph (b)(2) of this section is not in 
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a month from May through September, May 1 immediately after the 

compliance date under paragraph (b)(2) of this section.

(4) The owner or operator of a CSAPR NOX Ozone Season Group 

2 unit for which construction of a new stack or flue or 

installation of add-on NOX emission controls is completed after 

the applicable deadline under paragraph (b)(1), (2), or (3) of 

this section shall meet the requirements of § 75.4(e)(1) through 

(4) of this chapter, except that:

(i) Such requirements shall apply to the monitoring systems 

required under § 97.830 through § 97.835, rather than the 

monitoring systems required under part 75 of this chapter;

(ii) NOX emission rate, NOX concentration, stack gas 

moisture content, stack gas volumetric flow rate, and O2 or CO2

concentration data shall be determined and reported, rather than 

the data listed in § 75.4(e)(2) of this chapter; and

(iii) Any petition for another procedure under § 75.4(e)(2) 

of this chapter shall be submitted under § 97.835, rather than 

§ 75.66 of this chapter.

(c) Reporting data. The owner or operator of a CSAPR NOX

Ozone Season Group 2 unit that does not meet the applicable 

compliance date set forth in paragraph (b) of this section for 

any monitoring system under paragraph (a)(1) of this section 

shall, for each such monitoring system, determine, record, and 
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report maximum potential (or, as appropriate, minimum potential) 

values for NOX concentration, NOX emission rate, stack gas flow 

rate, stack gas moisture content, fuel flow rate, and any other 

parameters required to determine NOX mass emissions and heat 

input in accordance with § 75.31(b)(2) or (c)(3) of this 

chapter, section 2.4 of appendix D to part 75 of this chapter, 

or section 2.5 of appendix E to part 75 of this chapter, as 

applicable.

(d) Prohibitions. (1) No owner or operator of a CSAPR NOX

Ozone Season Group 2 unit shall use any alternative monitoring 

system, alternative reference method, or any other alternative 

to any requirement of this subpart without having obtained prior 

written approval in accordance with § 97.835.

(2) No owner or operator of a CSAPR NOX Ozone Season Group 2 

unit shall operate the unit so as to discharge, or allow to be 

discharged, NOX to the atmosphere without accounting for all such 

NOX in accordance with the applicable provisions of this subpart 

and part 75 of this chapter.

(3) No owner or operator of a CSAPR NOX Ozone Season Group 2 

unit shall disrupt the continuous emission monitoring system, 

any portion thereof, or any other approved emission monitoring 

method, and thereby avoid monitoring and recording NOX mass 

discharged into the atmosphere or heat input, except for periods 
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of recertification or periods when calibration, quality 

assurance testing, or maintenance is performed in accordance 

with the applicable provisions of this subpart and part 75 of 

this chapter.

(4) No owner or operator of a CSAPR NOX Ozone Season Group 2 

unit shall retire or permanently discontinue use of the 

continuous emission monitoring system, any component thereof, or 

any other approved monitoring system under this subpart, except 

under any one of the following circumstances:

(i) During the period that the unit is covered by an 

exemption under § 97.805 that is in effect;

(ii) The owner or operator is monitoring emissions from the 

unit with another certified monitoring system approved, in 

accordance with the applicable provisions of this subpart and 

part 75 of this chapter, by the Administrator for use at that 

unit that provides emission data for the same pollutant or 

parameter as the retired or discontinued monitoring system; or

(iii) The designated representative submits notification of 

the date of certification testing of a replacement monitoring 

system for the retired or discontinued monitoring system in 

accordance with § 97.831(d)(3)(i).

(e) Long-term cold storage. The owner or operator of a 

CSAPR NOX Ozone Season Group 2 unit is subject to the applicable 
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provisions of § 75.4(d) of this chapter concerning units in 

long-term cold storage.

§ 97.831 Initial monitoring system certification and 

recertification procedures.

(a) The owner or operator of a CSAPR NOX Ozone Season Group 

2 unit shall be exempt from the initial certification 

requirements of this section for a monitoring system under 

§ 97.830(a)(1) if the following conditions are met:

(1) The monitoring system has been previously certified in 

accordance with part 75 of this chapter; and

(2) The applicable quality-assurance and quality-control 

requirements of § 75.21 of this chapter and appendices B, D, and 

E to part 75 of this chapter are fully met for the certified 

monitoring system described in paragraph (a)(1) of this section.

(b) The recertification provisions of this section shall 

apply to a monitoring system under § 97.830(a)(1) that is exempt 

from initial certification requirements under paragraph (a) of 

this section.

(c) If the Administrator has previously approved a petition 

under § 75.17(a) or (b) of this chapter for apportioning the NOX

emission rate measured in a common stack or a petition under 

§ 75.66 of this chapter for an alternative to a requirement in 

§ 75.12 or § 75.17 of this chapter, the designated 
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representative shall resubmit the petition to the Administrator 

under § 97.835 to determine whether the approval applies under 

the CSAPR NOX Ozone Season Group 2 Trading Program.

(d) Except as provided in paragraph (a) of this section, 

the owner or operator of a CSAPR NOX Ozone Season Group 2 unit 

shall comply with the following initial certification and 

recertification procedures for a continuous monitoring system 

(i.e., a continuous emission monitoring system and an excepted 

monitoring system under appendices D and E to part 75 of this 

chapter) under § 97.830(a)(1). The owner or operator of a unit 

that qualifies to use the low mass emissions excepted monitoring 

methodology under § 75.19 of this chapter or that qualifies to 

use an alternative monitoring system under subpart E of part 75 

of this chapter shall comply with the procedures in paragraph 

(e) or (f) of this section respectively.

(1) Requirements for initial certification. The owner or 

operator shall ensure that each continuous monitoring system 

under § 97.830(a)(1) (including the automated data acquisition 

and handling system) successfully completes all of the initial 

certification testing required under § 75.20 of this chapter by 

the applicable deadline in § 97.830(b). In addition, whenever 

the owner or operator installs a monitoring system to meet the 

requirements of this subpart in a location where no such 
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monitoring system was previously installed, initial 

certification in accordance with § 75.20 of this chapter is 

required.

(2) Requirements for recertification. Whenever the owner or 

operator makes a replacement, modification, or change in any 

certified continuous emission monitoring system under 

§ 97.830(a)(1) that may significantly affect the ability of the 

system to accurately measure or record NOX mass emissions or heat 

input rate or to meet the quality-assurance and quality-control 

requirements of § 75.21 of this chapter or appendix B to part 75 

of this chapter, the owner or operator shall recertify the 

monitoring system in accordance with § 75.20(b) of this chapter. 

Furthermore, whenever the owner or operator makes a replacement, 

modification, or change to the flue gas handling system or the 

unit’s operation that may significantly change the stack flow or 

concentration profile, the owner or operator shall recertify 

each continuous emission monitoring system whose accuracy is 

potentially affected by the change, in accordance with 

§ 75.20(b) of this chapter. Examples of changes to a continuous 

emission monitoring system that require recertification include: 

replacement of the analyzer, complete replacement of an existing 

continuous emission monitoring system, or change in location or 

orientation of the sampling probe or site. Any fuel flowmeter 
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system, and any excepted NOX monitoring system under appendix E 

to part 75 of this chapter, under § 97.830(a)(1) are subject to 

the recertification requirements in § 75.20(g)(6) of this 

chapter.

(3) Approval process for initial certification and 

recertification. For initial certification of a continuous 

monitoring system under § 97.830(a)(1), paragraphs (d)(3)(i) 

through (v) of this section apply. For recertifications of such 

monitoring systems, paragraphs (d)(3)(i) through (iv) of this 

section and the procedures in § 75.20(b)(5) and (g)(7) of this 

chapter (in lieu of the procedures in paragraph (d)(3)(v) of 

this section) apply, provided that in applying paragraphs 

(d)(3)(i) through (iv) of this section, the words 

“certification” and “initial certification” are replaced by the 

word “recertification” and the word “certified” is replaced by 

with the word “recertified”.

(i) Notification of certification. The designated 

representative shall submit to the appropriate EPA Regional 

Office and the Administrator written notice of the dates of 

certification testing, in accordance with § 97.833.

(ii) Certification application. The designated 

representative shall submit to the Administrator a certification 

application for each monitoring system. A complete certification 
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application shall include the information specified in § 75.63 

of this chapter.

(iii) Provisional certification date. The provisional 

certification date for a monitoring system shall be determined 

in accordance with § 75.20(a)(3) of this chapter. A 

provisionally certified monitoring system may be used under the 

CSAPR NOX Ozone Season Group 2 Trading Program for a period not 

to exceed 120 days after receipt by the Administrator of the 

complete certification application for the monitoring system 

under paragraph (d)(3)(ii) of this section. Data measured and 

recorded by the provisionally certified monitoring system, in 

accordance with the requirements of part 75 of this chapter, 

will be considered valid quality-assured data (retroactive to 

the date and time of provisional certification), provided that 

the Administrator does not invalidate the provisional 

certification by issuing a notice of disapproval within 120 days 

of the date of receipt of the complete certification application 

by the Administrator.

(iv) Certification application approval process. The 

Administrator will issue a written notice of approval or 

disapproval of the certification application to the owner or 

operator within 120 days of receipt of the complete 

certification application under paragraph (d)(3)(ii) of this 
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section. In the event the Administrator does not issue such a 

notice within such 120-day period, each monitoring system that 

meets the applicable performance requirements of part 75 of this 

chapter and is included in the certification application will be 

deemed certified for use under the CSAPR NOX Ozone Season Group 2 

Trading Program.

(A) Approval notice. If the certification application is 

complete and shows that each monitoring system meets the 

applicable performance requirements of part 75 of this chapter, 

then the Administrator will issue a written notice of approval 

of the certification application within 120 days of receipt.

(B) Incomplete application notice. If the certification 

application is not complete, then the Administrator will issue a 

written notice of incompleteness that sets a reasonable date by 

which the designated representative must submit the additional 

information required to complete the certification application. 

If the designated representative does not comply with the notice 

of incompleteness by the specified date, then the Administrator 

may issue a notice of disapproval under paragraph (d)(3)(iv)(C) 

of this section.

(C) Disapproval notice. If the certification application 

shows that any monitoring system does not meet the performance 

requirements of part 75 of this chapter or if the certification 
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application is incomplete and the requirement for disapproval 

under paragraph (d)(3)(iv)(B) of this section is met, then the 

Administrator will issue a written notice of disapproval of the 

certification application. Upon issuance of such notice of 

disapproval, the provisional certification is invalidated by the 

Administrator and the data measured and recorded by each 

uncertified monitoring system shall not be considered valid 

quality-assured data beginning with the date and hour of 

provisional certification (as defined under § 75.20(a)(3) of 

this chapter).

(D) Audit decertification. The Administrator may issue a 

notice of disapproval of the certification status of a monitor 

in accordance with § 97.832(b).

(v) Procedures for loss of certification. If the 

Administrator issues a notice of disapproval of a certification 

application under paragraph (d)(3)(iv)(C) of this section or a 

notice of disapproval of certification status under paragraph 

(d)(3)(iv)(D) of this section, then:

(A) The owner or operator shall substitute the following 

values, for each disapproved monitoring system, for each hour of 

unit operation during the period of invalid data specified under 

§ 75.20(a)(4)(iii), § 75.20(g)(7), or § 75.21(e) of this chapter 
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and continuing until the applicable date and hour specified 

under § 75.20(a)(5)(i) or (g)(7) of this chapter:

(1) For a disapproved NOX emission rate (i.e., NOX-diluent) 

system, the maximum potential NOX emission rate, as defined in 

§ 72.2 of this chapter.

(2) For a disapproved NOX pollutant concentration monitor 

and disapproved flow monitor, respectively, the maximum 

potential concentration of NOX and the maximum potential flow 

rate, as defined in sections 2.1.2.1 and 2.1.4.1 of appendix A 

to part 75 of this chapter.

(3) For a disapproved moisture monitoring system and 

disapproved diluent gas monitoring system, respectively, the 

minimum potential moisture percentage and either the maximum 

potential CO2 concentration or the minimum potential O2

concentration (as applicable), as defined in sections 2.1.5, 

2.1.3.1, and 2.1.3.2 of appendix A to part 75 of this chapter.

(4) For a disapproved fuel flowmeter system, the maximum 

potential fuel flow rate, as defined in section 2.4.2.1 of 

appendix D to part 75 of this chapter.

(5) For a disapproved excepted NOX monitoring system under 

appendix E to part 75 of this chapter, the fuel-specific maximum 

potential NOX emission rate, as defined in § 72.2 of this 

chapter.
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(B) The designated representative shall submit a 

notification of certification retest dates and a new 

certification application in accordance with paragraphs 

(d)(3)(i) and (ii) of this section.

(C) The owner or operator shall repeat all certification 

tests or other requirements that were failed by the monitoring 

system, as indicated in the Administrator’s notice of 

disapproval, no later than 30 unit operating days after the date 

of issuance of the notice of disapproval.

(e) The owner or operator of a unit qualified to use the 

low mass emissions (LME) excepted methodology under § 75.19 of 

this chapter shall meet the applicable certification and 

recertification requirements in §§ 75.19(a)(2) and 75.20(h) of 

this chapter. If the owner or operator of such a unit elects to 

certify a fuel flowmeter system for heat input determination, 

the owner or operator shall also meet the certification and 

recertification requirements in § 75.20(g) of this chapter.

(f) The designated representative of each unit for which 

the owner or operator intends to use an alternative monitoring 

system approved by the Administrator under subpart E of part 75 

of this chapter shall comply with the applicable notification 

and application procedures of § 75.20(f) of this chapter.

§ 97.832 Monitoring system out-of-control periods.
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(a) General provisions. Whenever any monitoring system 

fails to meet the quality-assurance and quality-control 

requirements or data validation requirements of part 75 of this 

chapter, data shall be substituted using the applicable missing 

data procedures in subpart D or subpart H of, or appendix D or 

appendix E to, part 75 of this chapter.

(b) Audit decertification. Whenever both an audit of a 

monitoring system and a review of the initial certification or 

recertification application reveal that any monitoring system 

should not have been certified or recertified because it did not 

meet a particular performance specification or other requirement 

under § 97.831 or the applicable provisions of part 75 of this 

chapter, both at the time of the initial certification or 

recertification application submission and at the time of the 

audit, the Administrator will issue a notice of disapproval of 

the certification status of such monitoring system. For the 

purposes of this paragraph, an audit shall be either a field 

audit or an audit of any information submitted to the 

Administrator or any State or permitting authority. By issuing 

the notice of disapproval, the Administrator revokes 

prospectively the certification status of the monitoring system. 

The data measured and recorded by the monitoring system shall 

not be considered valid quality-assured data from the date of 
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issuance of the notification of the revoked certification status 

until the date and time that the owner or operator completes 

subsequently approved initial certification or recertification 

tests for the monitoring system. The owner or operator shall 

follow the applicable initial certification or recertification 

procedures in § 97.831 for each disapproved monitoring system.

§ 97.833 Notifications concerning monitoring.

The designated representative of a CSAPR NOX Ozone Season 

Group 2 unit shall submit written notice to the Administrator in 

accordance with § 75.61 of this chapter.

§ 97.834 Recordkeeping and reporting.

(a) General provisions. The designated representative shall 

comply with all recordkeeping and reporting requirements in 

paragraphs (b) through (e) of this section, the applicable 

recordkeeping and reporting requirements under § 75.73 of this 

chapter, and the requirements of § 97.814(a).

(b) Monitoring plans. The owner or operator of a CSAPR NOX

Ozone Season Group 2 unit shall comply with the requirements of 

§ 75.73(c) and (e) of this chapter.

(c) Certification applications. The designated 

representative shall submit an application to the Administrator 

within 45 days after completing all initial certification or 
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recertification tests required under § 97.831, including the 

information required under § 75.63 of this chapter.

(d) Quarterly reports. The designated representative shall 

submit quarterly reports, as follows:

(1)(i) If a CSAPR NOX Ozone Season Group 2 unit is subject 

to the Acid Rain Program or the CSAPR NOX Annual Trading Program 

or if the owner or operator of such unit chooses to report on an 

annual basis under this subpart, then the designated 

representative shall meet the requirements of subpart H of part 

75 of this chapter (concerning monitoring of NOX mass emissions) 

for such unit for the entire year and report the NOX mass 

emissions data and heat input data for such unit for the entire 

year.

(ii) If a CSAPR NOX Ozone Season Group 2 unit is not subject 

to the Acid Rain Program or the CSAPR NOX Annual Trading Program, 

then the designated representative shall either: 

(A) Meet the requirements of subpart H of part 75 of this 

chapter for such unit for the entire year and report the NOX mass 

emissions data and heat input data for such unit for the entire 

year in accordance with paragraph (d)(1)(i) of this section; or

(B) Meet the requirements of subpart H of part 75 of this 

chapter (including the requirements in § 75.74(c) of this 

chapter) for such unit for the control period and report the NOX
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mass emissions data and heat input data (including the data 

described in § 75.74(c)(6) of this chapter) for such unit only 

for the control period of each year.

(2) The designated representative shall report the NOX mass 

emissions data and heat input data for a CSAPR NOX Ozone Season 

Group 2 unit, in an electronic quarterly report in a format 

prescribed by the Administrator, for each calendar quarter 

indicated under paragraph (d)(1) of this section beginning by 

the latest of:

(i) The calendar quarter covering May 1, 2017 through June 

30, 2017;

(ii) The calendar quarter corresponding to the earlier of 

the date of provisional certification or the applicable deadline 

for initial certification under § 97.830(b); or

(iii) For a unit that reports on a control period basis 

under paragraph (d)(1)(ii)(B) of this section, if the calendar 

quarter under paragraph (d)(2)(ii) of this section does not 

include a month from May through September, the calendar quarter 

covering May 1 through June 30 immediately after the calendar 

quarter under paragraph (d)(2)(ii) of this section.

(3) The designated representative shall submit each 

quarterly report to the Administrator within 30 days after the 

end of the calendar quarter covered by the report. Quarterly 
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reports shall be submitted in the manner specified in § 75.73(f) 

of this chapter.

(4) For CSAPR NOX Ozone Season Group 2 units that are also 

subject to the Acid Rain Program, CSAPR NOX Annual Trading 

Program, CSAPR SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 

Trading Program, quarterly reports shall include the applicable 

data and information required by subparts F through H of part 75 

of this chapter as applicable, in addition to the NOX mass 

emission data, heat input data, and other information required 

by this subpart.

(5) The Administrator may review and conduct independent 

audits of any quarterly report in order to determine whether the 

quarterly report meets the requirements of this subpart and part 

75 of this chapter, including the requirement to use substitute 

data.

(i) The Administrator will notify the designated 

representative of any determination that the quarterly report 

fails to meet any such requirements and specify in such 

notification any corrections that the Administrator believes are 

necessary to make through resubmission of the quarterly report 

and a reasonable time period within which the designated 

representative must respond. Upon request by the designated 

representative, the Administrator may specify reasonable 
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extensions of such time period. Within the time period 

(including any such extensions) specified by the Administrator, 

the designated representative shall resubmit the quarterly 

report with the corrections specified by the Administrator, 

except to the extent the designated representative provides 

information demonstrating that a specified correction is not 

necessary because the quarterly report already meets the 

requirements of this subpart and part 75 of this chapter that 

are relevant to the specified correction.

(ii) Any resubmission of a quarterly report shall meet the 

requirements applicable to the submission of a quarterly report 

under this subpart and part 75 of this chapter, except for the 

deadline set forth in paragraph (d)(3) of this section.

(e) Compliance certification. The designated representative 

shall submit to the Administrator a compliance certification (in 

a format prescribed by the Administrator) in support of each 

quarterly report based on reasonable inquiry of those persons 

with primary responsibility for ensuring that all of the unit’s 

emissions are correctly and fully monitored. The certification 

shall state that:

(1) The monitoring data submitted were recorded in 

accordance with the applicable requirements of this subpart and 
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part 75 of this chapter, including the quality assurance 

procedures and specifications;

(2) For a unit with add-on NOX emission controls and for all 

hours where NOX data are substituted in accordance with 

§ 75.34(a)(1) of this chapter, the add-on emission controls were 

operating within the range of parameters listed in the quality 

assurance/quality control program under appendix B to part 75 of

this chapter and the substitute data values do not 

systematically underestimate NOX emissions; and

(3) For a unit that is reporting on a control period basis 

under paragraph (d)(1)(ii)(B) of this section, the NOX emission 

rate and NOX concentration values substituted for missing data 

under subpart D of part 75 of this chapter are calculated using 

only values from a control period and do not systematically 

underestimate NOX emissions.

§ 97.835 Petitions for alternatives to monitoring, 

recordkeeping, or reporting requirements.

(a) The designated representative of a CSAPR NOX Ozone 

Season Group 2 unit may submit a petition under § 75.66 of this 

chapter to the Administrator, requesting approval to apply an 

alternative to any requirement of §§ 97.830 through 97.834.

(b) A petition submitted under paragraph (a) of this 

section shall include sufficient information for the evaluation 
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of the petition, including, at a minimum, the following 

information:

(1) Identification of each unit and source covered by the 

petition;

(2) A detailed explanation of why the proposed alternative 

is being suggested in lieu of the requirement;

(3) A description and diagram of any equipment and 

procedures used in the proposed alternative;

(4) A demonstration that the proposed alternative is 

consistent with the purposes of the requirement for which the 

alternative is proposed and with the purposes of this subpart 

and part 75 of this chapter and that any adverse effect of 

approving the alternative will be de minimis; and

(5) Any other relevant information that the Administrator 

may require.

(c) Use of an alternative to any requirement referenced in 

paragraph (a) of this section is in accordance with this subpart 

only to the extent that the petition is approved in writing by 

the Administrator and that such use is in accordance with such 

approval.