26040 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules 

Energy Effects 

We have analyzed this proposed rule 

under Executive Order 13211, Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use. We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. The Administrator of the Office 

of Information and Regulatory Affairs 

has not designated it as a significant 

energy action. Therefore, it does not 

require a Statement of Energy Effects 

under Executive Order 13211. 

Technical Standards 

The National Technology Transfer 

and Advancement Act (NTTAA) (15 

U.S.C. 272 note) directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through the Office of 

Management and Budget, with an 

explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This proposed rule does not use 

technical standards. Therefore, we did 

not consider the use of voluntary 

consensus standards. 

Environment 

We have analyzed this proposed rule 

under Commandant Instruction 

M16475.lD, and Department of 

Homeland Security Management 

Directive 5100.1, which guides the 

Coast Guard in complying with the 

National Environmental Policy Act of 

1969 (NEPA) (42 U.S.C. 4321–4370f), 

and have made a preliminary 

determination that there are no factors 

in this case that would limit the use of 

a categorical exclusion under section 

2.B.2 of the Instruction. Therefore, we 

believe that this rule should be 

categorically excluded, under figure 2–

1, paragraph (32)(e), of the Instruction, 

from further environmental 

documentation. Under figure 2–1, 

paragraph (32)(e), of the Instruction, an 

‘‘Environmental Analysis Check List’’

and a ‘‘Categorical Exclusion 

Determination’’ are not required for this 

rule. However, comments on this 

section will be considered before the 

final rule. 

List of Subjects in 33 CFR Part 117 

Bridges. 

For the reasons discussed in the 

preamble, the Coast Guard proposes to 

amend 33 CFR part 117 as follows: 

PART 117—DRAWBRIDGE 

OPERATION REGULATIONS 

1. The authority citation for part 117 

continues to read as follows: 

Authority: 33 U.S.C. 499; Department of 

Homeland Security Delegation No. 0170.1; 33 

CFR 1.05–1(g); section 117.255 also issued 

under the authority of Pub. L. 102–587, 106 

Stat. 5039. 

2. In § 117.821, paragraph (a)(5) is 

revised to read as follows: 

§ 117.821 Atlantic Intracoastal Waterway, 

Albermarle Sound to Sunset Beach. 

* * * * * 

(a) * * * 

(5) S.R. 1172 Bridge, mile 337.9, at 

Sunset Beach, NC, shall open on the 

hour on signal between 7 a.m. to 9 p.m. 

* * * * * 

Dated: April 9, 2007. 

L.L. Hereth, 

Rear Admiral, U.S. Coast Guard, Commander, 

Fifth Coast Guard District. 

[FR Doc. E7–8723 Filed 5–7–07; 8:45 am] 

BILLING CODE 4910–15–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R07–OAR–2007–0347; FRL–8309–6] 

Approval And Promulgation of 

Implementation Plans; Iowa; Clean Air 

Interstate Rule 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

a revision to the Iowa State 

Implementation Plan (SIP) submitted on 

August 15, 2006. This revision 

addresses the requirements of EPA’s 

Clean Air Interstate Rule (CAIR) 

promulgated on May 12, 2005, and 

subsequently revised on April 28, 2006, 

and December 13, 2006. EPA is 

proposing to determine that the SIP 

revision fully implements the CAIR 

requirements for Iowa. Therefore, as a 

consequence of the SIP approval, EPA 

will also withdraw the CAIR Federal 

Implementation Plans (FIPs) concerning 

SO2, NOX annual, NOX ozone season 

emissions for Iowa. The CAIR FIPs for 

all States in the CAIR region were 

promulgated on April 28, 2006, and 

subsequently revised on December 13, 

2006. 

CAIR requires States to reduce 

emissions of sulfur dioxide (SO2) and 

nitrogen oxides (NOX) that significantly 

contribute to, and interfere with 

maintenance of, the national ambient air 

quality standards for fine particulates 

and/or ozone in any downwind state. 

CAIR establishes State budgets for SO2

and NOX and requires States to submit 

SIP revisions that implement these 

budgets in States that EPA concluded 

did contribute to nonattainment in 

downwind states. States have the 

flexibility to choose which control 

measures to adopt to achieve the 

budgets, including participating in the 

EPA-administered cap-and-trade 

programs. In the SIP revision that EPA 

is proposing to approve, Iowa would 

meet CAIR requirements by 

participating in the EPA-administered 

cap-and-trade programs addressing SO2, 

NOX annual, and NOX ozone season 

emissions. 

DATES: Comments must be received on 

or before June 7, 2007. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R07–

OAR–2007–0347, by one of the 

following methods: 

1. http://www.regulations.gov: Follow 

the on-line instructions for submitting 

comments. 

2. E-mail: jay.michael@epa.gov. 

3. Mail: Michael Jay, Environmental 

Protection Agency, Air Planning and 

Development Branch, 901 North 5th 

Street, Kansas City, Kansas 66101. 

4. Hand Delivery or Courier: Deliver 

your comments to: Michael Jay, 

Environmental Protection Agency, Air 

Planning and Development Branch, 901 

North 5th Street, Kansas City, Kansas 

66101. Such deliveries are only 

accepted during the Regional Office’s 

normal hours of operation. The Regional 

Office’s official hours of business are 

Monday through Friday, 8 a.m. to 4:30 

p.m., excluding Federal holidays. 

Instructions: Direct your comments to 

Docket ID No. EPA–R07–OAR–2007–

0347. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at http:// 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit through http:// 

www.regulations.gov or e-mail, 


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information that you consider to be CBI 

or otherwise protected. The http:// 

www.regulations.gov Web site is an 

‘‘anonymous access’’ system, which 

means EPA will not know your identity 

or contact information unless you 

provide it in the body of your comment. 

If you send an e-mail comment directly 

to EPA without going through http:// 

www.regulations.gov, your e-mail 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Electronic files should avoid the use of 

special characters and any form of 

encryption and should be free of any 

defects or viruses. 

Docket: All documents in the 

electronic docket are listed in the http:// 

www.regulations.gov index. Although 

listed in the index, some information is 

not publicly available, i.e., CBI or other 

information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

is not placed on the Internet and will be 

publicly available only in hard copy 

form. Publicly available docket 

materials are available either 

electronically in http:// 

www.regulations.gov or in hard copy at 

the Environmental Protection Agency, 

Air Planning and Development Branch, 

901 North 5th Street, Kansas City, 

Kansas 66101. EPA requests that you 

contact the person listed in the FOR

FURTHER INFORMATION CONTACT section to 

schedule your inspection. The 

interested persons wanting to examine 

these documents should make an 

appointment with the office at least 24 

hours in advance. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions concerning this 

proposal, please contact Michael Jay at 

(913) 551–7460 or by e-mail at 

jay.michael@epa.gov. 

SUPPLEMENTARY INFORMATION: 

Throughout this document whenever 

‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean 

EPA. 

Table of Contents 

I. What Action Is EPA Proposing to Take? 

II. What Is the Regulatory History of CAIR 

and the CAIR FIPs? 

III. What Are the General Requirements of 

CAIR and the CAIR FIPs? 

IV. What Are the Types of CAIR SIP 

Submittals? 

V. Analysis of Iowa’s CAIR SIP Submittal 

A. State Budgets for Allowance Allocations 

B. CAIR Cap-and-Trade Programs 

C. NOX Allowance Allocations 

D. Allocation of NOX Allowances from 

Compliance Supplement Pool 

E. Individual Opt-in Units 

VI. Proposed Actions 

VII. Statutory and Executive Order Reviews 

I. What Action Is EPA Proposing to 

Take? 

EPA is proposing to approve a 

revision to Iowa’s SIP submitted on 

August 15, 2006. In its SIP revision, 

Iowa would meet CAIR requirements by 

requiring certain electric generating 

units (EGUs) to participate in the EPAadministered State CAIR cap-and-trade 

programs addressing SO2, NOX annual, 

and NOX ozone season emissions, as 

finalized in the Iowa Administrative 

Bulletin on June 7, 2006 (567–

20.1(455B,17A), 21.1(4), and Chapter 

34). Iowa’s regulations adopt by 

reference most of the provisions of 

EPA’s SO2, NOX annual, and NOX ozone 

season model trading rules, with certain 

changes discussed below. EPA is 

proposing to determine that the SIP as 

revised will meet the applicable 

requirements of CAIR. Any final action 

approving the SIP will be taken by the 

Regional Administrator for Region 7. If 

EPA approves this revision, the 

Administrator of EPA will also issue a 

final rule to withdraw the FIPs 

concerning SO2, NOX annual, and NOX

ozone season emissions for Iowa. This 

action would delete and reserve 40 CFR 

52.840 and 40 CFR 52.841, relating to 

the CAIR FIP obligations for Iowa. The 

withdrawal of the CAIR FIPs for Iowa is 

a conforming amendment that must be 

made once the SIP is approved because 

EPA’s authority to issue the FIPs was 

premised on a deficiency in the SIP for 

Iowa. Once a SIP is fully approved, EPA 

no longer has authority for the FIPs. 

Thus, EPA will not have the option of 

maintaining the FIPs following full SIP 

approval. Accordingly, EPA does not 

intend to offer an opportunity for a 

public hearing or an additional 

opportunity for written public comment 

on the withdrawal of the FIPs. 

II. What Is the Regulatory History of 

CAIR and the CAIR FIPs? 

The Clean Air Interstate Rule (CAIR) 

was published by EPA on May 12, 2005 

(70 FR 25162). In this rule, EPA 

determined that 28 States and the 

District of Columbia contribute 

significantly to nonattainment and 

interfere with maintenance of the 

national ambient air quality standards 

(NAAQS) for fine particles (PM2.5) and/ 

or 8-hour ozone in downwind States in 

the eastern part of the country. As a 

result, EPA required those upwind 

States to revise their SIPs to include 

control measures that reduce emissions 

of SO2, which is a precursor to PM2.5

formation, and/or NOX, which is a 

precursor to both ozone and PM2.5

formation. For jurisdictions that 

contribute significantly to downwind 

PM2.5 nonattainment, CAIR sets annual 

State-wide emission reduction 

requirements (i.e., budgets) for SO2 and 

annual State-wide emission reduction 

requirements for NOX. Similarly, for 

jurisdictions that contribute 

significantly to 8-hour ozone 

nonattainment, CAIR sets State-wide 

emission reduction requirements for 

NOX for the ozone season (May 1 to 

September 30). Under CAIR, States may 

implement these reduction 

requirements by participating in the 

EPA-administered cap-and-trade 

programs or by adopting any other 

control measures. 

CAIR explains to subject States what 

must be included in SIPs to address the 

requirements of section 110(a)(2)(D) of 

the Clean Air Act (CAA) with regard to 

interstate transport with respect to the 

8-hour ozone and PM2.5 NAAQS. EPA 

made national findings, effective on 

May 25, 2005, that the States had failed 

to submit SIPs meeting the requirements 

of section 110(a)(2)(D). The SIPs were 

due in July 2000, 3 years after the 

promulgation of the 8-hour ozone and 

PM2.5 NAAQS. These findings started a 

2-year clock for EPA to promulgate a 

Federal Implementation Plan (FIP) to 

address the requirements of section 

110(a)(2)(D). Under CAA section 

110(c)(1), EPA may issue a FIP anytime 

after such findings are made and must 

do so within two years unless a SIP 

revision correcting the deficiency is 

approved by EPA before the FIP is 

promulgated. 

Iowa submitted its SIP in response to 

EPA’s section 110(a)(2)(D) finding, 

which EPA approved in a rule 

published March 8, 2007 (72 FR 10380). 

In that rule, EPA stated that Iowa had 

met its obligation with regard to 

interstate transport by adoption of the 

CAIR model rule. EPA also stated that 

it would review and act on Iowa’s CAIR 

rule in a separate rulemaking. This 

document proposes action on Iowa’s 

CAIR rule as explained below. 

On April 28, 2006, EPA promulgated 

FIPs for all States covered by CAIR in 

order to ensure the emissions reductions 

required by CAIR are achieved on 

schedule. Each CAIR State is subject to 

the FIPs until the State fully adopts, and 

EPA approves, a SIP revision meeting 

the requirements of CAIR. The CAIR 


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FIPs require EGUs to participate in the 

EPA-administered CAIR SO2, NOX

annual, and NOX ozone season trading 

programs, as appropriate. The CAIR FIP 

SO2, NOX annual, and NOX ozone 

season trading programs impose 

essentially the same requirements as, 

and are integrated with, the respective 

CAIR SIP trading programs. The 

integration of the FIP and SIP trading 

programs means that these trading 

programs will work together to 

effectively create a single trading 

program for each regulated pollutant 

(SO2, NOX annual, and NOX ozone 

season) in all States covered by the 

CAIR FIP or SIP trading program for that 

pollutant. The CAIR FIPs also allow 

States to submit abbreviated SIP 

revisions that, if approved by EPA, will 

automatically replace or supplement 

certain CAIR FIP provisions (e.g., the 

methodology for allocating NOX

allowances to sources in the State), 

while the CAIR FIP remains in place for 

all other provisions. 

On April 28, 2006, EPA published 

two additional CAIR-related final rules 

that added the States of Delaware and 

New Jersey to the list of States subject 

to CAIR for PM2.5 and announced EPA’s 

final decisions on reconsideration of 

five issues, without making any 

substantive changes to the CAIR 

requirements. 

III. What Are the General Requirements 

of CAIR and the CAIR FIPs? 

CAIR establishes State-wide emission 

budgets for SO2 and NOX and is to be 

implemented in two phases. The first 

phase of NOX reductions starts in 2009 

and continues through 2014, while the 

first phase of SO2 reductions starts in 

2010 and continues through 2014. The 

second phase of reductions for both 

NOX and SO2 starts in 2015 and 

continues thereafter. CAIR requires 

States to implement the budgets by 

either: (1) Requiring EGUs to participate 

in the EPA-administered cap-and-trade 

programs; or (2) adopting other control 

measures of the State’s choosing and 

demonstrating that such control 

measures will result in compliance with 

the applicable State SO2 and NOX

budgets. 

The May 12, 2005, and April 28, 2006, 

CAIR rules provide model rules that 

States must adopt (with certain limited 

changes, if desired) if they want to 

participate in the EPA-administered 

trading programs. 

With two exceptions, only States that 

choose to meet the requirements of 

CAIR through methods that exclusively 

regulate EGUs are allowed to participate 

in the EPA-administered trading 

programs. One exception is for States 

that adopt the opt-in provisions of the 

model rules to allow non-EGUs 

individually to opt into the EPAadministered trading programs. The 

other exception is for States that include 

all non-EGUs from their NOX SIP Call 

trading programs in their CAIR NOX

ozone season trading programs. 

IV. What Are the Types of CAIR SIP 

Submittals? 

States have the flexibility to choose 

the type of control measures they will 

use to meet the requirements of CAIR. 

EPA anticipates that most States will 

choose to meet the CAIR requirements 

by selecting an option that requires 

EGUs to participate in the EPAadministered CAIR cap-and-trade 

programs. For such States, EPA has 

provided two approaches for submitting 

and obtaining approval for CAIR SIP 

revisions. States may submit full SIP 

revisions that adopt the model CAIR 

cap-and-trade rules. If approved, these 

SIP revisions will fully replace the CAIR 

FIPs. Alternatively, States may submit 

abbreviated SIP revisions. These SIP 

revisions will not replace the CAIR FIPs; 

however, the CAIR FIPs provide that, 

when approved, the provisions in these 

abbreviated SIP revisions will be used 

instead of or in conjunction with, as 

appropriate, the corresponding 

provisions of the CAIR FIPs (e.g., the 

NOX allowance allocation 

methodology). 

A State submitting a full SIP revision 

may either adopt regulations that are 

substantively identical to the model 

rules or incorporate by reference the 

model rules. CAIR provides that States 

may only make limited changes to the 

model rules if the States want to 

participate in the EPA-administered 

trading programs. A full SIP revision 

may change the model rules only by 

altering their applicability and 

allowance allocation provisions to: (1) 

Include NOX SIP Call trading sources 

that are not EGUs under CAIR in the 

CAIR NOX ozone season trading 

program; (2) provide for State allocation 

of NOX annual or ozone season 

allowances using a methodology chosen 

by the State; (3) provide for State 

allocation of NOX annual allowances 

from the compliance supplement pool 

(CSP) using the State’s choice of 

allowed, alternative methodologies; or 

(4) allow units that are not otherwise 

CAIR units to opt individually into the 

CAIR SO2, NOX annual, or NOX ozone 

season trading programs under the optin provisions in the model rules. 

An approved CAIR full SIP revision 

addressing EGUs’ SO2, NOX annual, or 

NOX ozone season emissions will 

replace the CAIR FIP for that State for 

the respective EGU emissions. 

V. Analysis of Iowa’s CAIR SIP 

Submittal 

A. State Budgets for Allowance 

Allocations 

The CAIR NOX annual and ozone 

season budgets were developed from 

historical heat input data for EGUs. 

Using these data, EPA calculated annual 

and ozone season regional heat input 

values, which were multiplied by 0.15 

lb/mmBtu, for phase 1, and 0.125 lb/ 

mmBtu, for phase 2, to obtain regional 

NOX budgets for 2009–2014 and for 

2015 and thereafter, respectively. EPA 

derived the State NOX annual and ozone 

season budgets from the regional 

budgets using State heat input data 

adjusted by fuel factors. 

The CAIR State SO2 budgets were 

derived by discounting the tonnage of 

emissions authorized by annual 

allowance allocations under the Acid 

Rain Program under title IV of the CAA. 

Under CAIR, each allowance allocated 

in the Acid Rain Program for the years 

in phase 1 of CAIR (2010 through 2014) 

authorizes 0.5 ton of SO2 emissions in 

the CAIR trading program, and each 

Acid Rain Program allowance allocated 

for the years in phase 2 of CAIR (2015 

and thereafter) authorizes 0.35 ton of 

SO2 emissions in the CAIR trading 

program. 

In this action, EPA is proposing 

approval of Iowa’s SIP revision that 

adopts the budgets established for the 

State in CAIR, i.e., 32,692 (2009–2014) 

and 27,243 (2015-thereafter) tons for 

NOX annual emissions, 14,263 (2009–

2014) and 11,886 (2015-thereafter) tons 

for NOX ozone season emissions, and 

64,095 (2010–2014) and 44,866 (2015- 

thereafter) tons for SO2 emissions. 

Iowa’s SIP revision sets these budgets as 

the total amounts of allowances 

available for allocation for each year 

under the EPA-administered cap-andtrade programs. 

Iowa has committed to revising a 

definition in all three CAIR rules in 

order to fully ensure allowances can be 

traded among all sources participating 

in the EPA-administered cap-and-trade 

programs as intended. EPA discovered 

after review of other States’ rules, but 

after Iowa had adopted its CAIR rules, 

that there was an issue related to the 

definition of ‘‘permitting authority’’

when it is revised to refer to a specific 

State’s permitting authority. 

In each of Iowa’s rules for CAIR, the 

EPA model trading rules were revised to 

limit all references to ‘‘permitting 

authority’’ to refer to the Iowa 

Department of Natural Resources. This 


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change is acceptable in most, but not all, 

instances under the current model rules. 

In certain definitions in the model rules 

incorporated by Iowa (i.e., ‘‘allocate’’ or 

‘‘allocation,’’ ‘‘CAIR NOX allowance,’’

‘‘CAIR SO2 allowance,’’ and ‘‘CAIR NOX

Ozone Season allowance’’), it is 

important that the term ‘‘permitting 

authority’’ cover permitting authorities 

in all States that choose to participate in 

the respective EPA-administered trading 

programs. This is necessary to ensure 

that all allowances issued in each EPAadministered trading program are 

fungible and can be traded and used for 

compliance with the allowance-holding 

requirement in any State in the program. 

On February 17, 2007, EPA provided 

a letter to Iowa that requested and 

outlined necessary definition revisions. 

EPA received a letter from Iowa on 

February 28, 2007, that provided a 

commitment to make the EPA suggested 

rule revisions as soon as is practicable 

upon publication of the final rule 

concerning the proposed Clean Air 

Mercury Rule (CAMR) Federal plan. On 

April 11, 2007, EPA received an 

electronic correspondence from Iowa 

stating that Iowa will, in any event, 

complete these rule revisions before 

January 1, 2008. The State will be able 

to simultaneously revise the ‘‘permitting 

authority’’ definition in all cap-andtrade rules for both CAIR and CAMR, 

and properly update the State’s rule as 

necessary to meet the requirements of 

the EPA-administered cap-and-tradeprogram for mercury. 

The final rule concerning the CAMR 

Federal plan is expected to be published 

before the earliest, major deadline for 

compliance with requirements for 

source owners and operators under the 

CAIR trading programs, i.e., the January 

1, 2008, deadline for emissions 

monitoring requirements under the 

CAIR Annual Trading Program. EPA 

expects that, by timing adoption of the 

EPA requested rule revisions to be soon 

after the publication of the final rule 

concerning the CAMR Federal plan, the 

State will ensure the revisions to the 

definition of ‘‘permitting authority’’ will 

be completed prior to any of the major 

compliance deadlines for source owners 

and operators under the CAIR trading 

programs. In the event the final rule 

concerning the CAMR Federal plan is 

not published in the expected 

timeframe, the State will need to ensure 

the necessary State rule revisions are 

completed and submitted to EPA in 

advance of the January 1, 2008, 

monitoring deadline for the CAIR NOX

Annual Trading Program. 

To be clear, EPA notes that it is not 

proposing to approve the State’s rule to 

comply with CAMR as part of this 

rulemaking. EPA will propose a separate 

rulemaking for the Iowa rule relating to 

CAMR. 

B. CAIR Cap-and-Trade Programs 

The CAIR NOX annual and ozone 

season model trading rules both largely 

mirror the structure of the NOX SIP Call 

model trading rule in 40 CFR part 96, 

subparts A through I. While the 

provisions of the NOX annual and ozone 

season model rules are similar, there are 

some differences. For example, the NOX

annual model rule (but not the NOX

ozone season model rule) provides for a 

compliance supplement pool (CSP), 

which is discussed below and under 

which allowances may be awarded for 

early reductions of NOX annual 

emissions. As a further example, the 

NOX ozone season model rule reflects 

the fact that the CAIR NOX ozone season 

trading program replaces the NOX SIP 

Call trading program after the 2008 

ozone season and is coordinated with 

the NOX SIP Call program. The NOX

ozone season model rule provides 

incentives for early emissions 

reductions by allowing banked, pre2009 NOX SIP Call allowances to be 

used for compliance in the CAIR NOX

ozone season trading program. In 

addition, States have the option of 

continuing to meet their NOX SIP Call 

requirement by participating in the 

CAIR NOX ozone season trading 

program and including all their NOX SIP 

Call trading sources in that program. 

The provisions of the CAIR SO2

model rule are also similar to the 

provisions of the NOX annual and ozone 

season model rules. However, the SO2

model rule is coordinated with the 

ongoing Acid Rain SO2 cap-and-trade 

program under CAA title IV. The SO2

model rule uses the title IV allowances 

for compliance, with each allowance 

allocated for 2010–2014 authorizing 

only 0.50 ton of emissions and each 

allowance allocated for 2015 and 

thereafter authorizing only 0.36 ton of 

emissions. Banked title IV allowances 

allocated for years before 2010 can be 

used at any time in the CAIR SO2 capand-trade program, with each such 

allowance authorizing 1 ton of 

emissions. Title IV allowances are to be 

freely transferable among sources 

covered by the Acid Rain Program and 

sources covered by the CAIR SO2 capand-trade program. 

EPA also used the CAIR model 

trading rules as the basis for the trading 

programs in the CAIR FIPs. The CAIR 

FIP trading rules are virtually identical 

to the CAIR model trading rules, with 

changes made to account for Federal 

rather than State implementation. The 

CAIR model SO2, NOX annual, and NOX

ozone season trading rules and the 

respective CAIR FIP trading rules are 

designed to work together as integrated 

SO2, NOX annual, and NOX ozone 

season trading programs. 

In the SIP revision, Iowa has chosen 

to implement its CAIR budgets by 

requiring EGUs to participate in EPAadministered cap-and-trade programs 

for SO2, NOX annual, and NOX ozone 

season emissions. Iowa has adopted a 

full SIP revision that adopts, with the 

changes discussed above and with 

certain allowed changes discussed 

below, the CAIR model cap-and-trade 

rules for SO2, NOX annual, and NOX

ozone season emissions. 

C. NOX Allowance Allocations 

Under the NOX allowance allocation 

methodology in the CAIR model trading 

rules and in the CAIR FIP, NOX annual 

and ozone season allowances are 

allocated to units that have operated for 

five years, based on heat input data from 

a three-year period that are adjusted for 

fuel type by using fuel factors of 1.0 for 

coal, 0.6 for oil, and 0.4 for other fuels. 

The CAIR model trading rules and the 

CAIR FIP also provide a new unit setaside from which units without five 

years of operation are allocated 

allowances based on the units’ prior 

year emissions. 

States may establish in their SIP 

submissions a different NOX allowance 

allocation methodology that will be 

used to allocate allowances to sources in 

the States if certain requirements are 

met concerning the timing of 

submission of units’ allocations to the 

Administrator for recordation and the 

total amount of allowances allocated for 

each control period. In adopting 

alternative NOX allowance allocation 

methodologies, States have flexibility 

with regard to: (1) The cost to recipients 

of the allowances, which may be 

distributed for free or auctioned; (2) the 

frequency of allocations; (3) the basis for 

allocating allowances, which may be 

distributed, for example, based on 

historical heat input or electric and 

thermal output; and (4) the use of 

allowance set-asides and, if used, their 

size. 

Iowa has chosen to adopt the essential 

components of the CAIR NOX annual 

and CAIR NOX ozone season model 

trading rules concerning the allocation 

of allowances with two notable 

exceptions. Language is provided in 

Iowa’s rules that attempts to clarify that 

allowances will be allocated in future 

years only ‘‘to meet the minimum 

timing requirements’’ specified in the 

Federal regulations. EPA understands 

that the language is intended to mean 

that allocations will be determined by 


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26044 Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules 

the dates and only for the years 

identified or described in 40 CFR 96.141 

and 40 CFR 96.341. Additionally, Iowa’s 

CAIR NOX Annual and CAIR NOX ozone 

rules establish permanent allocations for 

specified units designated as ‘‘existing 

units’’ or ‘‘new units’’ and do not 

include provisions of the EPA’s model 

rules that call for adjusting the 

allocations for existing units to provide 

allocations for future, new units. EPA is 

proposing to approve these changes to 

the model rule provisions because the 

changes are consistent with the 

flexibility that CAIR provides States 

with regard to allocation methodologies. 

D. Allocation of NOX Allowances From 

Compliance Supplement Pool 

The CAIR establishes a compliance 

supplement pool to provide an 

incentive for early reductions in NOX

annual emissions. The CSP consists of 

200,000 CAIR NOX annual allowances 

of vintage 2009 for the entire CAIR 

region, and a State’s share of the CSP is 

based upon the projected magnitude of 

the emission reductions required by 

CAIR in that State. States may distribute 

CSP allowances, one allowance for each 

ton of early reduction, to sources that 

make NOX reductions during 2007 or 

2008 beyond what is required by any 

applicable State or Federal emission 

limitation. States also may distribute 

CSP allowances based upon a 

demonstration of need for an extension 

of the 2009 deadline for implementing 

emission controls. 

The CAIR annual NOX model trading 

rule establishes specific methodologies 

for allocations of CSP allowances. States 

may choose an allowed, alternative CSP 

allocation methodology to be used to 

allocate CSP allowances to sources in 

the States. 

Iowa has not chosen to modify the 

provisions of the CAIR NOX annual 

model trading rule concerning the 

allocation of allowances from the CSP. 

Iowa has chosen to distribute CSP 

allowances using the allocation 

methodology provided in 40 CFR 96.143 

and has adopted this section by 

reference. 

E. Individual Opt-in Units 

The opt-in provisions of the CAIR SIP 

model trading rules allow certain nonEGUs (i.e., boilers, combustion turbines, 

and other stationary fossil-fuel-fired 

devices) that do not meet the 

applicability criteria for a CAIR trading 

program to participate voluntarily in 

(i.e., opt into) the CAIR trading program. 

A non-EGU may opt into one or more 

of the CAIR trading programs. In order 

to qualify to opt into a CAIR trading 

program, a unit must vent all emissions 

through a stack and be able to meet 

monitoring, recordkeeping, and 

recording requirements of 40 CFR part 

75. The owners and operators seeking to 

opt a unit into a CAIR trading program 

must apply for a CAIR opt-in permit. If 

the unit is issued a CAIR opt-in permit, 

the unit becomes a CAIR unit, is 

allocated allowances, and must meet the 

same allowance-holding and emissions 

monitoring and reporting requirements 

as other units subject to the CAIR 

trading program. The opt-in provisions 

provide for two methodologies for 

allocating allowances for opt-in units, 

one methodology that applies to opt-in 

units in general and a second 

methodology that allocates allowances 

only to opt-in units that the owners and 

operators intend to repower before 

January 1, 2015. 

States have several options 

concerning the opt-in provisions. States 

may adopt the CAIR opt-in provisions 

entirely or may adopt them but exclude 

one of the methodologies for allocating 

allowances. States may also decline to 

adopt the opt-in provisions at all. 

Iowa has chosen to allow non-EGUs 

meeting certain requirements to opt into 

the CAIR trading programs by adopting 

by reference the entirety of EPA’s model 

rule provisions for opt-in units in the 

CAIR SO2, CAIR NOX annual, and CAIR 

NOX ozone season trading programs. 

VI. Proposed Actions 

EPA is proposing to approve Iowa’s 

full CAIR SIP revision submitted on 

August 15, 2006. Under this SIP 

revision, Iowa is choosing to participate 

in the EPA-administered cap-and-trade 

programs for SO2, NOX annual, and NOX

ozone season emissions. EPA believes 

that the SIP revision meets the 

applicable requirements in 40 CFR 

51.123(o) and (aa), with regard to NOX

annual and NOX ozone season 

emissions, and 40 CFR 51.124(o), with 

regard to SO2 emissions. EPA is 

proposing to determine that the SIP as 

revised will meet the requirements of 

CAIR. If EPA finalizes this action as 

proposed, the Administrator of EPA will 

also issue, without providing an 

opportunity for a public hearing or an 

additional opportunity for written 

public comment, a final rule to 

withdraw the CAIR FIPs concerning 

SO2, NOX annual, and NOX ozone 

season emissions for Iowa. The 

Administrator’s action would delete and 

reserve 40 CFR 52.840 and 40 CFR 

52.841. 

VII. Statutory and Executive Order 

Reviews 

Under Executive Order 12866 (58 FR 

51735, October 4, 1993), this action is 

not a ‘‘significant regulatory action’’ and 

therefore is not subject to review by the 

Office of Management and Budget. For 

this reason, this action is also not 

subject to Executive Order 13211, 

‘‘Actions Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use’’ (66 FR 28355, May 

22, 2001). This action merely proposes 

to approve State law as meeting Federal 

requirements and would impose no 

additional requirements beyond those 

imposed by State law. Accordingly, the 

Administrator certifies that this 

proposed rule would not have a 

significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.). Because this action 

proposes to approve pre-existing 

requirements under State law and 

would not impose any additional 

enforceable duty beyond that required 

by State law, it does not contain any 

unfunded mandate or significantly or 

uniquely affect small governments, as 

described in the Unfunded Mandates 

Reform Act of 1995 (Pub. L. 104–4). 

This proposal also does not have 

tribal implications because it would not 

have a substantial direct effect on one or 

more Indian tribes, on the relationship 

between the Federal Government and 

Indian tribes, or on the distribution of 

power and responsibilities between the 

Federal Government and Indian tribes, 

as specified by Executive Order 13175 

(65 FR 67249, November 9, 2000). This 

proposed action also does not have 

Federalism implications because it 

would 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, as 

specified in Executive Order 13132 (64 

FR 43255, August 10, 1999). This action 

merely proposes to approve a State rule 

implementing a Federal standard and 

will result, as a consequence of that 

approval, in the Administrator’s 

withdrawal of the CAIR FIP. It does not 

alter the relationship or the distribution 

of power and responsibilities 

established in the Clean Air Act. This 

proposed rule also is not subject to 

Executive Order 13045 ‘‘Protection of 

Children from Environmental Health 

Risks and Safety Risks’’ (62 FR 19885, 

April 23, 1997), because it would 

approve a State rule implementing a 

Federal Standard. 

In reviewing SIP submissions, EPA’s 

role is to approve State choices, 

provided that they meet the criteria of 

the Clean Air Act. In this context, in the 

absence of a prior existing requirement 

for the State to use voluntary consensus 


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Federal Register / Vol. 72, No. 88 / Tuesday, May 8, 2007 / Proposed Rules 26045 

standards (VCS), EPA has no authority 

to disapprove a SIP submission for 

failure to use VCS. It would thus be 

inconsistent with applicable law for 

EPA, when it reviews a SIP submission, 

to use VCS in place of a SIP submission 

that otherwise satisfies the provisions of 

the Clean Air Act. Thus, the 

requirements of section 12(d) of the 

National Technology Transfer and 

Advancement Act of 1995 (15 U.S.C. 

272 note) do not apply. This proposed 

rule would not impose an information 

collection burden under the provisions 

of the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.). 

List of Subjects in 40 CFR Part 52 

Environmental protection, Air 

pollution control, Electric utilities, 

Intergovernmental relations, Nitrogen 

oxides, Ozone, Particulate matter, 

Reporting and recordkeeping 

requirements, Sulfur dioxide. 

Dated: April 30, 2007. 

John B. Askew, 

Regional Administrator, Region 7. 

[FR Doc. E7–8665 Filed 5–7–07; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2006–0827; FRL–8303–1] 

Revisions to the Arizona State 

Implementation Plan, Maricopa County 

Environmental Services Department 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

a revision to the Maricopa County 

Environmental Services Department 

(MCESD) portion of the Arizona State 

Implementation Plan (SIP). This 

revision concerns particulate matter 

(PM–10) emissions from open burning. 

We are proposing approval of a local 

rule that regulates these emission 

sources under the Clean Air Act as 

amended in 1990 (CAA or the Act). 

DATES: Any comments on this proposal 

must arrive by June 7, 2007. 

ADDRESSES: Submit comments, 

identified by docket number EPA–R09–

OAR–2006–0827, by one of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the on-line 

instructions. 

• E-mail: steckel.andrew@epa.gov. 

• Mail or deliver: Andrew Steckel 

(Air–4), U.S. Environmental Protection 

Agency Region IX, 75 Hawthorne Street, 

San Francisco, CA 94105. 

Instructions: All comments will be 

included in the public docket without 

change and may be made available 

online at http://www.regulations.gov, 

including any personal information 

provided, unless the comment includes 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. Information that 

you consider CBI or otherwise protected 

should be clearly identified as such and 

should not be submitted through 

http://www.regulations.gov or e-mail. 

http://www.regulations.gov is an 

‘‘anonymous access’’ system, and EPA 

will not know your identity or contact 

information unless you provide it in the 

body of your comment. If you send email directly to EPA, your e-mail 

address will be automatically captured 

and included as part of the public 

comment. If EPA cannot read your 

comment due to technical difficulties 

and cannot contact you for clarification, 

EPA may not be able to consider your 

comment. 

Docket: The index to the docket for 

this action is available electronically at 

http://www.regulations.gov and in hard 

copy at EPA Region IX, 75 Hawthorne 

Street, San Francisco, California. While 

all documents in the docket are listed in 

the index, some information may be 

publicly available only at the hard copy 

location (e.g., copyrighted material), and 

some may not be publicly available in 

either location (e.g., CBI). To inspect the 

hard copy materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: Al 

Petersen, Rulemaking Office (AIR–4), 

U.S. Environmental Protection Agency, 

Region IX, (415) 947–4118, 

petersen.alfred@epa.gov. 

SUPPLEMENTARY INFORMATION: This 

proposal addresses the approval of local 

MCESD Rule 314. In the Rules and 

Regulations section of this Federal 

Register, we are approving this local 

rule in a direct final action without 

prior proposal because we believe this 

SIP revision is not controversial. If we 

receive adverse comments, however, we 

will publish a timely withdrawal of the 

direct final rule and address the 

comments in subsequent action based 

on this proposed rule. We do not plan 

to open a second comment period, so 

anyone interested in commenting 

should do so at this time. If we do not 

receive adverse comments, no further 

activity is planned. For further 

information, please see the direct final 

action. 

Dated: March 23, 2007. 

Laura Yoshii, 

Acting Regional Administrator, Region IX. 

[FR Doc. E7–8691 Filed 5–7–07; 8:45 am] 

BILLING CODE 6560–50–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R07–OAR–2007–0249; FRL–8310–5] 

Approval and Promulgation of 

Implementation Plans; Missouri; 

Interstate Transport of Pollution 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing a revision to 

the Missouri State Implementation Plan 

(SIP) for the purpose of approving the 

Missouri Department of Natural 

Resources’ (MDNR) actions to address 

requirements of section 110(a)(2)(D)(i) of 

the Clean Air Act. Section 

110(a)(2)(D)(i) requires each state to 

submit a SIP that prohibits emissions 

that adversely affect another state’s air 

quality through interstate transport. 

MDNR has adequately addressed the 

four distinct elements related to the 

impact of interstate transport of air 

pollutants. These include prohibiting 

significant contribution to downwind 

nonattainment of the National Ambient 

Air Quality Standards (NAAQS), 

interference with maintenance of the 

NAAQS, interference with plans in 

another state to prevent significant 

deterioration of air quality, and 

interference with efforts of other states 

to protect visibility. The requirements 

for public notification were also met by 

MDNR. 

DATES: Comments on this proposed 

action must be received in writing by 

June 7, 2007. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R07–

OAR–2007–0249 by one of the following 

methods: 

1. http://www.regulations.gov: Follow 

the on-line instructions for submitting 

comments. 

2. E-mail: hamilton.heather@epa.gov. 

3. Mail: Heather Hamilton, 

Environmental Protection Agency, Air 

Planning and Development Branch, 901 

North 5th Street, Kansas City, Kansas 

66101. 

4. Hand Delivery or Courier. Deliver 

your comments to Heather Hamilton, 

Environmental Protection Agency, Air 

Planning and Development Branch, 901 

North 5th Street, Kansas City, Kansas 


cprice-sewell on PROD1PC62 with PROPOSALS