Federal Register / Vol. 65, No. 203 / Thursday, October 19, 2000 / Proposed Rules 62671

maintained for 3 years and made

available for review by the State. The

reporting requirements are approvable.

III. Proposed Action

EPA is proposing full approval of

Maryland’s NOX RACT regulation found

at COMAR 26.11.09.01 and 26.11.09.08

which was submitted as a SIP revision

by the Maryland Department of the

Environment on September 8, 2000.

Interested parties may participate in

the Federal rulemaking procedure by

submitting written comments to the

EPA Regional office listed in the

ADDRESSES section of this document.

Written comments must be received on

or before November 9, 2000. EPA calls

your attention to the November 9, 2000

deadline date for submittal of comments

on this proposed action to grant full

approval of this SIP revision submitted

by the State of Maryland. The EPA is

providing a shortened time period for

comment for two reasons. As an initial

matter, this revision is non-controversial

and EPA does not expect comment.

Maryland’s NOX RACT requirements are

consistent with the RACT requirements

adopted by other states and do provide

provisions for sources to apply for an

alternative RACT determination.

Moreover, this SIP revision is necessary

for full approval of the attainment

demonstration SIP for the Metropolitan

Washington, D.C. ozone nonattainment

area. The EPA is currently under an

obligation to complete rulemaking by

November 15, 2000 fully approving the

attainment demonstration for the

Metropolitan Washington, D.C. ozone

nonattainment area or, in the

alternative, proposing a federal

implementation plan.

IV. Administrative Requirements

Under Executive Order 12866 (58 FR

51735, October 4, 1993), this proposed

action is not a ‘‘significant regulatory

action’’ and therefore is not subject to

review by the Office of Management and

Budget. This action merely proposes to

approve state law as meeting Federal

requirements and imposes no additional

requirements beyond those imposed by

state law. Accordingly, the

Administrator certifies that this rule

will 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

rule approves pre-existing requirements

under state law and does 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

(Public Law 104–4). For the same

reason, this proposed rule also does not

significantly or uniquely affect the

communities of tribal governments, as

specified by Executive Order 13084 (63

FR 27655, May 10, 1998). This proposed

rule 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, as

specified in Executive Order 13132 (64

FR 43255, August 10, 1999), because it

merely proposes to approve a state rule

implementing a federal standard, and

does not alter the relationship or the

distribution of power and

responsibilities established in the Clean

Air Act. This rule also is not subject to

Executive Order 13045 (62 FR 19885,

April 23, 1997), because it is not

economically significant.

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

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. As required by

section 3 of Executive Order 12988 (61

FR 4729, February 7, 1996), in issuing

this rule, EPA has taken the necessary

steps to eliminate drafting errors and

ambiguity, minimize potential litigation,

and provide a clear legal standard for

affected conduct. EPA has complied

with Executive Order 12630 (53 FR

8859, March 15, 1988) by examining the

takings implications of the rule in

accordance with the ‘‘Attorney

General’s Supplemental Guidelines for

the Evaluation of Risk and Avoidance of

Unanticipated Takings’’ issued under

the executive order. This rule, which

proposes approval of Maryland’s NOX

RACT regulation, does 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, Intergovernmental

relations, Nitrogen dioxide, Reporting

and recordkeeping requirements.

Dated: October 13, 2000.

Thomas Voltaggio,

Acting Regional Administrator, Region III.

[FR Doc. 00–26905 Filed 10–18–00; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[MD104–3057; FRL–6888–2]

Approval and Promulgation of Air

Quality Implementation Plans;

Maryland; Nitrogen Oxides Reduction

and Trading Program

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: EPA is proposing to approve

a State Implementation Plan (SIP)

revision submitted by the State of

Maryland on April 27, 2000. This

revision responds to the EPA’s

regulation entitled, ‘‘Finding of

Significant Contribution and

Rulemaking for Certain States in the

Ozone Transport Assessment Group

Region for Purposes of Reducing

Regional Transport of Ozone,’’

otherwise known as the ‘‘ NOX SIP

Call.’’ This revision establishes and

requires a nitrogen oxides (NOX)

allowance trading program for large

electric generating and industrial units,

and reductions for cement kilns and

stationary industrial combustion

engines, beginning in 2003. The

intended effect of this action has two

purposes. EPA is proposing to approve

the Maryland’s NOX Reduction and

Trading Program because it meets the

requirements of the NOX SIP Call that

will significantly reduce ozone transport

in the eastern United States. In addition,

EPA is proposing to approve the

Maryland’s NOX Reduction and Trading

Program because it supports the onehour attainment demonstration plans for

the Baltimore, Metropolitan

Washington, D.C. and PhiladelphiaWilmington-Trenton ozone

nonattainment areas.

DATES: Written comments must be

received on or before November 9, 2000.

ADDRESSES: Written comments may be

mailed to David L. Arnold, Chief, Ozone

& Mobile Sources Branch, Mailcode

3AP21, U.S. Environmental Protection

Agency, Region III, 1650 Arch Street,

Philadelphia, Pennsylvania 19103.

Copies of the documents relevant to this

action are available for public

inspection during normal business

hours at the Air Protection Division,

62672 Federal Register / Vol. 65, No. 203 / Thursday, October 19, 2000 / Proposed Rules

U.S. Environmental Protection Agency,

Region III, 1650 Arch Street,

Philadelphia, Pennsylvania 19103 and

Maryland Department of the

Environment, 2500 Broening Highway,

Baltimore, Maryland 21224.

FOR FURTHER INFORMATION CONTACT:

Cristina Fernandez, (215) 814–2178, or

by e-mail at fernandez.cristina@epa.gov.

SUPPLEMENTARY INFORMATION: On April

27, 2000, the Maryland Department of

the Environment (MDE) submitted a

revision to its SIP to meet the

requirements of the NOX SIP Call. The

revision consists of the adoption of two

new chapters COMAR 26.111.29 NOX

Reduction and Trading Program and

COMAR 26.11.30 Polices and Procedure

Relating to Maryland’s NOX Reduction

and Trading Program.

The information in this section is

organized as follows:

I. EPA’s Action

A. What action is EPA proposing today?

B. Why is EPA proposing this action?

C. What are the general NOX SIP Call

requirements?

D. What is EPA’s NOX budget and

allowance trading program?

E. What guidance did EPA use to evaluate

Maryland’s submittal?

II. Maryland’s NOX Reduction and Trading

Program

A. When did Maryland submit the SIP

revision to EPA in response to the NOX SIP

Call?

B. What is the Maryland’s NOX Budget

Trading Program?

C. What is the result of EPA’s evaluation

of Maryland’s program?

III. Proposed Action

A. NOX SIP Call Requirements

B. One-Hour Attainment Demonstration

Plans

IV. Administrative Requirements

I. EPA’s Action

A. What Action Is EPA Proposing

Today?

EPA is proposing to approve the

Maryland’s SIP revision concerning the

adoption of its NOX Reduction and

Trading Program, submitted on April

27, 2000.

B. Why Is EPA Proposing This Action?

EPA is proposing this action for two

purposes. Maryland’s NOX Reduction

and Trading Program regulations meet

the requirements of the NOX SIP Call. In

addition, Maryland’s NOX Reduction

and Trading Program regulations are

part of the one-hour ozone attainment

demonstration plans for the serious and

severe ozone nonattainment areas of the

State of Maryland. The one-hour

attainment demonstration plans for the

Baltimore, Metropolitan Washington,

D.C. and Philadelphia-WilmingtonTrenton ozone nonattainment areas rely

on the NOX reductions associated with

the NOX Reduction and Trading

Program in 2003 and beyond. Therefore,

EPA is proposing full approval of

Maryland’s NOX Reduction and Trading

Program for two reasons. First, because

it meets the requirements of the NOX

SIP Call, and secondly as a

strengthening measure for the one-hour

ozone attainment plans for Baltimore,

Metropolitan Washington, D.C. and

Philadelphia-Wilmington-Trenton

ozone nonattainment areas.

C. What Are the General NOX SIP Call

Requirements?

On October 27, 1998, EPA published

a final rule entitled, ‘‘Finding of

Significant Contribution and

Rulemaking for Certain States in the

Ozone Transport Assessment Group

Region for Purposes of Reducing

Regional Transport of Ozone,’’

otherwise known as the ‘‘NOX SIP Call.’’

See 63 FR 57356. The NOX SIP Call

requires 22 States and the District of

Columbia to meet statewide NOX

emission budgets during the five month

period between May 1 and October 1 in

order to reduce the amount of ground

level ozone that is transported across

the eastern United States.

EPA determined state-wide NOX

emission budgets for each affected

jurisdiction to be met by the year 2007.

EPA identified NOX emission

reductions by source category that could

be achieved by using cost-effective

measures. The source categories

included were electric generating units

(EGUs), non-electric generating units

(non-EGUs), area sources, nonroad

mobile sources and highway sources.

However, the NOX SIP Call allowed

states the flexibility to decide which

source categories to regulate in order to

meet the statewide budgets. In the NOX

SIP Call notice, EPA suggested that

imposing statewide NOX emissions caps

on large fossil-fuel fired industrial

boilers and electricity generating units

would provide a highly cost effective

means for States to meet their NOX

budgets. In fact, the state-specific

budgets were set assuming an emission

rate of 0.15 pounds NOX per million

British thermal units (lb. NOX/mmBtu)

at EGUs, multiplied by the projected

heat input (mmBtu) from burning the

quantity of fuel needed to meet the 2007

forecast for electricity demand. See 63

FR 57407. The calculation of the 2007

EGU emissions assumed that an

emissions trading program would be

part of an EGU control program. The

NOX SIP Call state budgets also assumed

on average a 30% NOX reduction from

cement kilns, a 60% reduction from

industrial boilers and combustion

turbines, and a 90% reduction from

internal combustion engines. The nonEGU control assumptions were applied

at units where the heat input capacities

were greater than 250 mmBtu per hour,

or in cases where heat input data were

not available or appropriate, at units

with actual emissions greater than one

ton per day.

To assist the states in their efforts to

meet the SIP Call, the NOX SIP Call final

rulemaking notice included a model

NOX allowance trading regulation,

called ‘‘NOX Budget Trading Program

for State Implementation Plans,’’ (40

CFR part 96), that could be used by

states to develop their regulations. The

NOX SIP Call notice explained that if

states developed an allowance trading

regulation consistent with the EPA

model rule, they could participate in a

regional allowance trading program that

would be administered by the EPA. See

63 FR 57458–57459.

There were several periods during

which EPA received comments on

various aspects of the NOX SIP Call

emissions inventories. On March 2,

2000, EPA published additional

technical amendments to the NOX SIP

Call in the Federal Register (65 FR

11222). The March 2000 final

rulemaking established the inventories

upon which Maryland’s final budget is

based.

On March 3, 2000, the D.C. Circuit

issued its decision on the NOX SIP Call

ruling in favor of EPA on all the major

issues. Michigan v. EPA, 213 F.3d 663

(D.C. Cir. 2000). The Court denied

petitioners’ requests for rehearing or

rehearing en banc on July 22, 2000.

However, the Court ruled against EPA

on four narrow issues. The Court

remanded certain matters for further

rulemaking by EPA. EPA expects to

publish a proposal that addresses the

remanded portion of the NOX SIP Call

Rule. Any additional emissions

reductions required as a result of a final

rulemaking on that proposal will be

reflected in the second phase portion

(Phase II) of the State’s emissions

budget. Maryland may be required to

submit SIP revisions to address any

revisions to the NOX SIP Call Rule.

D. What Is EPA’s NOX Budget and

Allowance Trading Program?

EPA’s model NOX budget and

allowance trading rule, 40 CFR part 96,

sets forth a NOX emissions trading

program for large EGUs and non-EGUs.

A state can voluntarily choose to adopt

EPA’s model rule in order to allow

sources within its borders to participate

Federal Register / Vol. 65, No. 203 / Thursday, October 19, 2000 / Proposed Rules 62673

in regional allowance trading. The

October 27, 1998 Federal Register

notice contains a full description of the

EPA’s model NOX budget trading

program. See 63 FR 57514—57538 and

40 CFR part 96. In general, air emissions

trading uses market forces to reduce the

overall cost of compliance for pollution

sources, such as power plants, while

maintaining emission reductions and

environmental benefits. One type of

market-based program is an emissions

budget and allowance trading program,

commonly referred to as a ‘‘cap and

trade’’ program.

In an emissions budget and allowance

trading program, the state or EPA sets a

regulatory limit, or emissions budget, in

mass emissions from a specific group of

sources. The budget limits the total

number of allocated allowances during

a particular control period. When the

budget is set at a level lower than the

current emissions, the effect is to reduce

the total amount of emissions during the

control period. After setting the budget,

the state or EPA then assigns, or

allocates, allowances to the

participating entities up to the level of

the budget. Each allowance authorizes

the emission of a quantity of pollutant,

e.g., one ton of airborne NOX.

At the end of the control period, each

source must demonstrate that its actual

emissions during the control period

were less than or equal to the number

of available allowances it holds. Sources

that reduce their emissions below their

allocated allowance level may sell their

extra allowances. Sources that emit

more than the amount of their allocated

allowance level may buy allowances

from the sources with extra reductions.

In this way, the budget is met in the

most cost-effective manner.

E. What Guidance Did EPA Use To

Evaluate Maryland’s Submittal?

The final NOX SIP Call rule included

a model NOX budget trading program

regulation. See 40 CFR part 96. EPA

used the model rule and 40 CFR 51.121–

51.122 to evaluate Maryland’s NOX

Reduction and Trading Program.

II. Maryland’s NOX Reduction and

Trading Program

A. When Did Maryland Submit the

SIP Revision to EPA in Response to the

NOX SIP Call?

On April 27, 2000, the Maryland

Department of the Environment

submitted a revision to its SIP to meet

the requirements of the NOX SIP Call.

B. What Is the Maryland’s NOX

Reduction and Trading Program?

Maryland’s SIP revision to meet the

requirements of the NOX SIP Call

consists of the adoption of two new

chapters COMAR 26.11.29—NOX

Reduction and Trading Program and

COMAR 26.11.30—Polices and

Procedure Relating to Maryland’s NOX

Reduction and Trading Program. The

regulations under COMAR 26.11.29 and

COMAR 26.11.30 affect electric

generating units, non-electric generating

units, cement manufacturing facilities,

and large internal combustion engines.

Chapter COMAR 26.11.29—NOX

Reduction and Trading Program is

divided into fifteen new regulations:

(.01) Definitions; (.02) Incorporation by

Reference; (.03) Scope and

Applicability; (.04) General

Requirements for Affected Trading

Sources; (.05) NOX Allowance

Allocations; (.06) Compliance

Supplement Pool; (.07) Allowance

Banking; (.08) Emission Monitoring;

(.09) Requirements for New Sources and

Set-Aside Pool; (.10) Reporting; (.11)

Record Keeping; (.12) End-of-Season

Reconciliation; (.13) Compliance

Certification; (.14) Penalties; (.15)

Requirements for Affected Nontrading

Sources.

The Code of Maryland Regulations

(COMAR) 26.11.30—Polices and

Procedure Relating to Maryland’s NOX

Reduction and Trading Program is

divided into nine new regulations: (.01)

Scope and Applicability; (.02)

Definitions; (.03) Procedures Relating to

Compliance Accounts; (.04) Procedures

Relating to General Accounts; (.05)

Allowance Banking; (.06) Allowance

Transfers; (.07) Early Reductions; (.08)

Opt-in Procedures; (.09) Allocation of

Allowances.

Maryland’s NOX Reduction and

Trading Program establishes and

requires a NOX allowance trading

program for large electric generating and

industrial units, and reductions for

cement kilns and stationary industrial

combustion engines.

The regulations under COMAR

26.11.29 and COMAR 26.11.30 establish

a NOX cap and allowance trading

program for the ozone seasons of 2003

and beyond. The State of Maryland

voluntarily chose to follow EPA’s model

NOX budget and allowance trading rule,

40 CFR part 96, that sets forth a NOX

emissions trading program for large

EGUs and non-EGUs. Because

Maryland’s NOX Reduction and Trading

Program is based upon EPA’s model

rule, Maryland sources are allowed to

participate in the interstate NOX

allowance trading program that EPA

will administer for the participating

states. The State of Maryland has

adopted regulations that are

substantively identical to 40 CFR part

96. Therefore, pursuant to 40 CFR

51.121(p)(1), Maryland’s SIP revision is

automatically approved as satisfying the

same portion of the State’s NOX

emission reduction obligations

Maryland projects such regulations will

satisfy.

Under COMAR 26.11.29 and COMAR

26.11.30, Maryland allocates NOX

allowances to the EGUs and non-EGUs

units that are affected by these

requirements. The NOX trading program

applies to all fossil fuel fired EGUs with

a nameplate capacity greater than 25

MW or more that sell any amount of

electricity to the grid as well as any nonEGUs that have a heat input capacity

equal to or greater than 250 mmBtu per

hour. Each NOX allowance permits a

source to emit one ton of NOX during

the seasonal control period. NOX

allowances may be bought or sold.

Unused NOX allowances may also be

banked for future use, with certain

limitations. Source owners will monitor

their NOX emissions by using systems

that meet the requirements of 40 CFR

part 75, subpart H, and report resulting

data to EPA electronically. Each budget

source complies with the program by

demonstrating at the end of each control

period that actual emissions do not

exceed the amount of allowances held

for that period. However, regardless of

the number of allowances a source

holds, it cannot emit at levels that

would violate other federal or state

limits, for example, reasonably available

control technology (RACT), new source

performance standards, or Title IV (the

Federal Acid Rain program).

Maryland’s NOX Reduction and

Trading Program establishes

requirements for cement manufacturing

facilities and stationary internal

combustion engines. These sources are

subject to NOX reduction requirements

but do not participate in the NOX

trading program.

Maryland’s submittal does not rely on

any additional reductions beyond the

anticipated Federal measures in the

mobile and area source categories.

Maryland’s submittal demonstrates

that the NOX emission budgets

established by EPA (65 FR11222) will be

met as follows:

Source category

EPA 2007

NOX budget

emissions

(tons/

season)

Maryland

2007 NOX

budget

emissions

(tons/

season)

EGUs ................ 14,656 14,656

Non-EGUs ........ 12,585 12,513

Area Sources .... 4,448 4,448

Non-road

Sources ......... 20,026 20,026

62674 Federal Register / Vol. 65, No. 203 / Thursday, October 19, 2000 / Proposed Rules

Source category

EPA 2007

NOX budget

emissions

(tons/

season)

Maryland

2007 NOX

budget

emissions

(tons/

season)

Highway

Sources ......... 30,183 30,183

Total ........... 81,898 81,826

C. What Is the Result of EPA’s

Evaluation of Maryland’s Program?

EPA has evaluated Maryland’s April

27, 2000 SIP submittal and finds it

approvable. The Maryland NOX

Reduction and Trading Program is

consistent with EPA’s guidance and

meets the requirements of the NOX SIP

Call. EPA finds the NOX control

measures in the Maryland’s NOX

Reduction and Trading Program

approvable. The April 27, 2000

submittal will strengthen Maryland’s

SIP for reducing ground level ozone by

providing NOX reductions beginning in

2003. Furthermore, Maryland’s NOX

Reduction and Trading Program is

necessary to fulfill a requirement of the

one-hour ozone attainment plans for the

serious and severe nonattainment areas

of Maryland. The attainment

demonstration plans for the Baltimore,

Metropolitan Washington, D.C. and

Philadelphia-Wilmington-Trenton

ozone nonattainment areas rely on the

NOX reductions associated with the

NOX Reduction and Trading Program in

2003 and beyond. EPA finds that

Maryland’s submittal is fully approvable

because it meets the requirements of the

NOX SIP Call and it is a strengthening

measure for the one-hour ozone

attainment plans for the Baltimore,

Metropolitan Washington, D.C. and

Philadelphia-Wilmington-Trenton

ozone nonattainment areas.

III. Proposed Action

A. NOX SIP Call Requirements

EPA is proposing to approve the

Maryland’s SIP revision consisting of its

NOX Reduction and Trading Program,

which was submitted on April 27, 2000.

EPA finds that Maryland’s submittal is

fully approvable because it meets the

requirements of the NOX SIP Call.

B. One-Hour Attainment Demonstration

Plans

EPA is proposing to approve the

Maryland’s SIP revision concerning the

adoption of the NOX Reduction and

Trading Program, which was submitted

on April 27, 2000. EPA finds that

Maryland’s submittal is fully approvable

because it is a strengthening measure for

the Maryland’s one-hour ozone

attainment plans for its serious and

severe ozone nonattainment areas,

namely the Baltimore (severe),

Metropolitan Washington, D.C. (serious)

and Philadelphia-Wilmington-Trenton

(severe) ozone nonattainment areas..

Interested parties may participate in the

Federal rulemaking procedure by

submitting written comments to the

EPA Regional office listed in the

Addresses section of this document.

These comments will be considered

before taking final action. EPA calls

your attention to the November 9, 2000

deadline date for submittal of comments

on this proposed action to approve this

SIP revision submitted by the State of

Maryland . The EPA is providing a

shortened time period for comment for

two reasons. As an initial matter, these

revisions are non-controversial and EPA

does not expect comment as Maryland’s

regulations incorporate by reference

much of the federal rule found at 40

CFR Part 96 for implementation of the

NOX SIP call. Moreover, this SIP

revision is necessary for full approval of

the attainment demonstration SIP for

the Metropolitan Washington, D.C.

ozone nonattainment area. The EPA is

currently under an obligation to

complete rulemaking by November 15,

2000 fully approving the attainment

demonstration for the Metropolitan

Washington, D.C. ozone nonattainment

area or, in the alternative, proposing a

federal implementation plan.

IV. Administrative Requirements

Under Executive Order 12866 (58 FR

51735, October 4, 1993), this proposed

action is not a ‘‘significant regulatory

action’’ and therefore is not subject to

review by the Office of Management and

Budget. This proposed action merely

approves state law as meeting federal

requirements and imposes no additional

requirements beyond those imposed by

state law. Accordingly, the

Administrator certifies that this

proposed rule will 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 rule proposes to

approve pre-existing requirements

under state law and does 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

(Public Law 104–4). For the same

reason, this proposed rule also does not

significantly or uniquely affect the

communities of tribal governments, as

specified by Executive Order 13084 (63

FR 27655, May 10, 1998). This proposed

rule 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, as

specified in Executive Order 13132 (64

FR 43255, August 10, 1999), because it

merely approves a state rule

implementing a federal standard, and

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 (62 FR

19885, April 23, 1997), because it is not

economically significant.

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

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. As required by

section 3 of Executive Order 12988 (61

FR 4729, February 7, 1996), in issuing

this proposed rule, EPA has taken the

necessary steps to eliminate drafting

errors and ambiguity, minimize

potential litigation, and provide a clear

legal standard for affected conduct. EPA

has complied with Executive Order

12630 (53 FR 8859, March 15, 1988) by

examining the takings implications of

the rule in accordance with the

‘‘Attorney General’s Supplemental

Guidelines for the Evaluation of Risk

and Avoidance of Unanticipated

Takings’ issued under the executive

order.

This proposed rule approving the

Maryland NOX Reduction and Trading

Program does 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, Nitrogen dioxide,

Ozone, Reporting and recordkeeping

requirements.

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

Federal Register / Vol. 65, No. 203 / Thursday, October 19, 2000 / Proposed Rules 62675

Dated: October 12, 2000.

Bradley M. Campbell,

Regional Administrator, Region III.

[FR Doc. 00–26904 Filed 10–18–00; 8:45 am]

BILLING CODE 6560–50–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[MD107–3059; FRL–6888–1]

Approval and Promulgation of Air

Quality Implementation Plans;

Maryland; New Source Review

Regulations

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Proposed rule.

SUMMARY: EPA is proposing to grant

limited approval of a State

Implementation Plan (SIP) revision

submitted by the State of Maryland

pursuant to the requirements of the

Clean Air Act (CAA). This revision

requires major new sources and major

modifications to existing sources of

volatile organic compounds (VOCs), and

nitrogen oxides ( NOX) to meet certain

new source review permitting

requirements if they are proposing to

locate or are located within the State of

Maryland. These NSR requirements

apply not only in those portions of

Maryland designated as ozone

nonattainment areas, but throughout the

State of Maryland as the entire state is

located within the Ozone Transport

Region (OTR). The intended effect of

this action is two-fold. First, it

withdraws the rulemaking action

proposing limited approval/disapproval

of Maryland’s NSR regulations

published by EPA on May 25, 1994.

Secondly, it proposes limited approval

of Maryland’s NSR regulations as

Maryland has amended those

regulations to correct the deficiencies

noted in EPA’s May 25, 1994 proposal.

DATES: Comments must be received on

or before November 9, 2000.

ADDRESSES: Comments may be mailed to

Makeba Morris, Chief, Permits and

Technical Assessment Branch, Mailcode

3AP11, U.S. Environmental Protection

Agency, Region III, 1650 Arch Street,

Philadelphia, Pennsylvania 19103.

Copies of the documents relevant to this

action are available for public

inspection during normal business

hours at the Air Protection Division,

U.S. Environmental Protection Agency,

Region III, 1650 Arch Street,

Philadelphia, Pennsylvania 19103, and

at the Maryland Department of the

Environment, 2500 Broening Highway,

Baltimore, Maryland 21224.

FOR FURTHER INFORMATION CONTACT:

Perry R. Pandya, Mailcode 3AP11, U.S.

Environmental Protection Agency,

Region III, 1650 Arch Street,

Philadelphia, Pennsylvania 19103, (215)

814–2167.

SUPPLEMENTARY INFORMATION:

I. New Source Requirements and

Maryland’s SIP Revision

The CAA requires that all states

submit revisions to their State

Implementation plans (SIPs) requiring

major new and major modified sources

to meet certain new source review

(NSR) requirements if they are located

(or are proposing to locate) in areas

designated nonattainment for a

pollutant, or, in the case of VOC or NOX

sources, in the OTR. This requirement

for a SIP revision applies to Maryland,

which currently has areas designated

nonattainment for ozone (a pollutant

formed under certain meteorological

conditions from precursor VOC and

NOX emissions). Additionally, the entire

State of Maryland is located within the

OTR.

On June 8, 1993, Maryland submitted

a revision to its SIP requiring new major

sources and major modifications of

VOCs and NOX to meet certain NSR

requirements. On May 25, 1994, EPA

proposed limited approval/disapproval

of that SIP revision (59 FR 26994). At

that time, EPA identified a number of

deficiencies with Maryland’s NSR

regulations which the state would have

to correct in order for EPA to grant final

approval of its NSR regulations. The

only comments submitted pursuant to

EPA’s May 25, 1994 proposal came from

the State of Maryland.

On September 25, 2000, the State of

Maryland submitted a revision to its SIP

which consists of amendments to its

NSR regulations. Those amendments

were made to satisfy the deficiencies

cited by EPA in its May 25, 1994

proposal.

EPA has determined that Maryland’s

NSR regulations, as amended and

submitted on September 25, 2000,

correct those deficiencies. For a detailed

analysis of the deficiencies and how

they were corrected, please refer to the

Technical Support Documents in the

Administrative Record. Therefore, EPA

has determined that the NSR regulations

submitted by the State of Maryland as

a SIP revision on June 8, 1993 in

conjunction with the amendments to

those regulations submitted as a SIP

revision on September 25, 2000 satisfy

the CAA and its associated NSR

regulations and policies.

A detailed description of federal NSR

requirements, Maryland’s NSR

regulations, the deficiencies of the those

regulations, and specific corrections that

Maryland had to make to those NSR

regulations were provided in EPA’s May

25, 1994 proposed rulemaking notice

(59 FR 26994) and shall not be restated

here. Maryland’s only amendments to

its NSR regulations, as submitted on

September 25, 2000, were those

necessary to address the deficiencies

cited by EPA in its May 25, 1994

proposed rulemaking notice. Rather

than proceed to final action, however,

given the length of time that has

transpired since that proposed action,

EPA believes it is prudent to withdraw

the May 25, 1994 proposed limited

approval/disapproval and to re-propose

limited approval of Maryland’s NSR

regulations.

II. Why EPA is Proposing Limited

Versus Full Approval of Maryland’s

NSR Regulations

Although the following explanation

for EPA proposing limited approval was

provided in the May 25, 1994 proposal,

given that EPA is re-proposing limited

approval at this time, it is being restated

here.

The Code of Maryland Regulations at

COMAR 26.11.17.04E provides that

emissions reductions achieved by

shutting down an existing source or

permanently curtailing productions or

operating hours below baseline levels

are creditable if the reductions are

permanent, quantifiable, and federally

enforceable, and only if such reductions

occurred on or after January 1, 1991.

However, existing EPA regulations also

provide that if a state does not have an

EPA-approved attainment

demonstration, then post-January 1,

1991 reductions achieved by a

shutdown or curtailment of production

or operating hours are only creditable if

the state is current in its attainment

planning obligations. See 54 FR 27286

(June 28, 1989). EPA’s current rules also

require that even in nonattainment areas

with approved attainment

demonstrations, only those shutdown or

curtailment credits generated after the

date of permit application are

creditable. See 40 CFR part 51,

appendix S.

Maryland’s revised NSR regulation

affirmatively allows persons seeking to

build new major sources or major

modifications to take credit for emission

reductions resulting from shutdowns or

curtailments of production or operating

hours if those shutdowns or

curtailments occurred after January 1,

1991. Because Maryland’s regulation

allows persons seeking to construct new