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[Federal Register Volume 81, Number 221 (Wednesday, November 16, 2016)]
[Rules and Regulations]
[Page 80593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27541]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 97

[FRL-9955-23-OAR]

Allocations of Cross-State Air Pollution Rule Allowances From New 
Unit Set-Asides for the 2016 Compliance Year

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule; notice of data availability (NODA).

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SUMMARY: The Environmental Protection Agency (EPA) is providing notice 
of emission allowance allocations to certain units under the new unit 
set-aside (NUSA) provisions of the Cross-State Air Pollution Rule 
(CSAPR) federal implementation plans (FIPs). EPA has completed final 
calculations for the second round of NUSA allowance allocations for the 
2016 compliance year of the CSAPR NOX Ozone Season Trading 
Program. EPA has posted spreadsheets showing the second-round 2016 NUSA 
allocations of CSAPR NOX Ozone Season allowances to new 
units as well as the allocations to existing units of the remaining 
CSAPR NOX Ozone Season allowances not allocated to new units 
in either round of the 2016 NUSA allocation process. EPA will record 
the allocated CSAPR NOX Ozone Season allowances in sources' 
Allowance Management System (AMS) accounts by November 15, 2016.

DATES: November 16, 2016.

FOR FURTHER INFORMATION CONTACT: Questions concerning this action 
should be addressed to Robert Miller at (202) 343-9077 or 
miller.robertl@epa.gov or to Kenon Smith at (202) 343-9164 or 
smith.kenon@epa.gov.

SUPPLEMENTARY INFORMATION: Under the CSAPR FIPs, a portion of each 
state budget for each of the four CSAPR trading programs \1\ is 
reserved as a NUSA from which allowances are allocated to eligible 
units through an annual one- or two-round process. EPA has described 
the CSAPR NUSA allocation process in three NODAs previously published 
this year in the Federal Register (81 FR 33636 May 27, 2016; 81 FR 
50630 August 2, 2016; 81 FR 63156 September 14, 2016). In the most 
recent of these previous NODAs, EPA provided notice of preliminary 
lists of new units eligible for second-round 2016 NUSA allocations of 
CSAPR NOX Ozone Season allowances and provided an 
opportunity for the public to submit objections.
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    \1\ In the recently finalized Cross-State Air Pollution Rule 
Update for the 2008 Ozone NAAQS (CSAPR Update Rule), 81 FR 74504 
(October 26, 2016), EPA is establishing new or modified FIP 
requirements for EGUs in 22 states to address transported pollution 
with regard to the 2008 ozone NAAQS, including requirements to 
participate in a new fifth CSAPR trading program--the CSAPR 
NOX Ozone Season Group 2 Trading Program--for emissions 
occurring in 2017 and later years. In the same rule, EPA is also 
withdrawing the FIP provisions requiring EGUs in 24 states to 
participate in the existing trading program addressing transported 
pollution with regard to the 1997 ozone NAAQS for emissions 
occurring after 2016. (When the CSAPR Update rule takes effect in 
December 2016, the existing program will be renamed the CSAPR 
NOX Ozone Season Group 1 Trading Program.) The 2016 
allowance allocations described in this notice concern the existing 
program and are not affected by the CSAPR Update Rule.
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    EPA received no objections to the preliminary lists of new units 
eligible for second-round 2016 NUSA allocations of CSAPR NOX 
Ozone Season allowances whose availability was announced in the 
September 14 NODA. EPA is therefore making second-round 2016 NUSA 
allocations of CSAPR NOX Ozone Season allowances to the new 
units identified on these lists in accordance with the procedures set 
forth in 40 CFR 97.512(a)(9) and (12).
    As described in the September 14 NODA, any allowances remaining in 
the CSAPR NOX Ozone Season NUSA for a given state and 
control period after the second round of NUSA allocations to new units 
are to be allocated to the existing units in the state according to the 
procedures set forth in 40 CFR 97.512(a)(10) and (12). EPA has 
determined that CSAPR NOX Ozone Season allowances do remain 
in the NUSAs for a number of states following completion of second-
round 2016 NUSA allocations; accordingly, EPA is allocating these 
allowances to existing units. The NUSA allowances are generally 
allocated to the existing units in proportion to the allocations 
previously made to the existing units under 40 CFR 97.511(a)(1), 
adjusted for rounding.
    Under 40 CFR 97.512(b)(10), any allowances remaining in the CSAPR 
NOX Ozone Season Indian country NUSA for a given state and 
control period after the second round of Indian country NUSA 
allocations to new units are added to the NUSA for that state or are 
made available for allocation by the state pursuant to an approved SIP 
revision. No new units eligible for allocations of CSAPR NOX 
Ozone Season allowances from any 2016 Indian country NUSA have been 
identified, and no state has an approved SIP revision governing 
allocation of 2016 CSAPR NOX Ozone Season allowances. The 
Indian country NUSA allowances are therefore being added to the NUSAs 
for the respective states and are included in the pools of allowances 
that are being allocated to existing units under 40 CFR 97.512(10) and 
(12).
    The final unit-by-unit data and allowance allocation calculations 
are set forth in Excel spreadsheets titled 
``CSAPR_NUSA_2016_NOx_OS_2nd_Round_Final_Data_New_Units'', and 
``CSAPR_NUSA_2016_NOx_OS_2nd_Round_Final_Data_Existing_Units'', 
available on EPA's Web site at https://www3.epa.gov/airtransport/CSAPR/actions.html.
    Pursuant to CSAPR's allowance recordation timing requirements, the 
allocated NUSA allowances will be recorded in sources' AMS accounts by 
November 15, 2016. EPA notes that an allocation or lack of allocation 
of allowances to a given unit does not constitute a determination that 
CSAPR does or does not apply to the unit. EPA also notes that NUSA 
allocations of CSAPR NOX Ozone Season allowances are subject 
to potential correction if a unit to which NUSA allowances have been 
allocated for a given compliance year is not actually an affected unit 
as of May 1 of the compliance year.\2\
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    \2\ See 40 CFR 97.511(c).

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    Authority:  40 CFR 97.511(b).

    Dated: November 2, 2016.
Reid P. Harvey,
Director, Clean Air Markets Division, Office of Atmospheric Programs, 
Office of Air and Radiation.
[FR Doc. 2016-27541 Filed 11-15-16; 8:45 am]
 BILLING CODE 6560-50-P
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