Document ID: EPA-R07-OAR-2007-0782-0001
Agency: epa
Document Type: Proposed Rule
Title: Approval and Promulgation of Implementation Plans; Missouri; Clean Air Interstate Rule
Posted Date: 2007-09-17T04:00Z

[Federal Register: September 17, 2007 (Volume 72, Number 179)]
[Proposed Rules]               
[Page 52828-52833]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17se07-15]                         

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2007-0782; FRL-8469-3]

 
Approval and Promulgation of Implementation Plans; Missouri; 
Clean Air Interstate Rule

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: EPA is proposing to approve a revision to the Missouri State 
Implementation Plan (SIP) submitted on May 18, 2007. 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 meets the CAIR requirements for Missouri. If EPA 
approves the revisions, we will also withdraw the CAIR Federal 
Implementation Plans (CAIR FIPs) concerning SO2, NOX 
annual, NOX ozone season emissions for Missouri. 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, 
Missouri 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 October 17, 2007.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-

[[Page 52829]]

OAR-2007-0782, 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: 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-
2007-0782. 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, 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 if at all possible, 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:

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 Missouri's CAIR SIP Submittal
    A. State Budgets for Allowance Allocations
    B. CAIR Cap-and-Trade Programs
    C. Applicability Provisions for Non-EGU NOX SIP Call 
Sources
    D. NOX Allowance Allocations
    E. Allocation of NOX Allowances From Compliance 
Supplement Pool
    F. 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 Missouri's SIP submitted 
on May 18, 2007. In its SIP revision, Missouri would meet CAIR 
requirements by requiring certain electric generating units (EGUs) to 
participate in the EPA-administered State CAIR cap-and-trade programs 
addressing SO2, NOX annual, and NOX 
ozone season emissions. 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 the EPA approves this revision, the Administrator of EPA 
will also issue a final rule to withdraw the FIPs concerning 
SO2, NOX annual, NOX ozone season 
emissions for Missouri. This action would delete and reserve 40 CFR 
52.1341 and 40 CFR 52.1342, relating to the FIP obligations for 
Missouri. The withdrawal of the CAIR FIPs for Missouri 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 
Missouri. Once the SIP is fully approved, EPA no longer has authority 
for the FIPs. Thus, EPA will not have the option of maintaining the 
FIPs following the 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 the 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)(i) 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)(i). 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)(i). Under CAA section

[[Page 52830]]

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.
    Missouri submitted its SIP in response to EPA's section 
110(a)(2)(D)(i) finding, which EPA approved in a rule published May 8, 
2007 (72 FR 25975). In that rule, EPA stated that Missouri 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 Missouri's 
CAIR rule in a separate rulemaking. This document proposes action on 
Missouri'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 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 create effectively 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 EPA-administered 
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 EPA-administered 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 opt-in 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 Missouri'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 I, and 0.125 lb/
mmBtu, for Phase II, 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 I 
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 II 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 Missouri's SIP 
revision that adopts the budgets established for the State in CAIR, 
i.e., 59,871 (2009-2014) and 49,892 (2015-thereafter) tons for 
NOX annual emissions, 26,678 (2009-2014) and 22,231 (2015-
thereafter) tons

[[Page 52831]]

for NOX ozone season emissions, and 137,214 (2010-2014) and 
96,050 (2015-thereafter) annual tons for SO2 emissions. 
Missouri's SIP revision sets these budgets as the total amounts of 
allowances available for allocation for each year under the EPA-
administered cap-and-trade programs.

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 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, pre-2009 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 0.35 ton of emissions. Banked title IV 
allowances allocated for years before 2010 can be used at any time in 
the CAIR SO2 cap-and-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 cap-and-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, Missouri chooses to implement its CAIR budgets 
by requiring EGUs to participate in EPA-administered cap-and-trade 
programs for SO2, NOX annual, and NOX 
ozone season emissions. Missouri has adopted a full SIP revision that 
adopts with certain allowed changes discussed below, the CAIR model 
cap-and-trade rules for SO2, NOX annual, and 
NOX ozone season emissions.

C. Applicability Provisions for non-EGU NOX SIP Call Sources

    In general, the CAIR model trading rules apply to any stationary, 
fossil fuel-fired boiler or stationary, fossil fuel-fired combustion 
turbine serving at any time, since the later of November 15, 1990, or 
the start-up of the unit's combustion chamber, a generator with 
nameplate capacity of more than 25 megawatts electric (MWe) producing 
electricity for sale.
    States have the option of bringing in, for the CAIR NOX 
ozone season program only, those units in the State's NOX 
SIP Call trading program that are not EGUs as defined under CAIR. EPA 
advises States exercising this option to add the applicability 
provisions in the State's NOX SIP Call trading rule for non-
EGUs to the applicability provisions in the State's CAIR NOX 
ozone season trading rule, in order to include in the CAIR 
NOX ozone season trading program all units required to be in 
the State's NOX SIP Call trading program that are not 
already included in accordance with 40 CFR 96.304. Under this option, 
the CAIR NOX ozone season program must cover all large 
industrial boilers and combustion turbines, as well as any small EGUs 
(i.e., units serving a generator with a nameplate capacity of 25 MWe or 
less) that the State currently requires to be in the NOX SIP 
Call trading program.
    Missouri has chosen to expand the applicability provisions of the 
CAIR NOX ozone season trading program to include all current 
and future non-EGUs in the State's NOX SIP Call trading 
program. The NOX SIP Call region of the State includes the 
eastern one-third of the State of Missouri (70 FR 46860).

D. 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 set-aside 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.
    Missouri has chosen to replace the provisions of the CAIR 
NOX annual model trading rule concerning the allocation of 
NOX annual allowances with its own methodology. Missouri has 
chosen to distribute NOX annual allowances to individual 
facilities based upon the total of their individual unit's pro-rata 
share of State's total heat input for all affected units in the State. 
The State has provided a table in rule 10 CSR 10-6.362 that provides 
for permanent allocations to units in Phases I and II. Additionally, 
the State's rule creates an energy efficiency renewable resource set-
aside of 300 allowances for each year of the program. The purpose for 
establishing this set-aside is to serve as an incentive for saving or 
generating electricity through the implementation of energy efficiency 
and renewable generation projects. If the number of allowances awarded 
each year are fewer than allowances allocated to the set-aside, the 
State will transfer surplus allowances to the accounts of the electric 
utilities on a pro-rata basis in the same proportion as allocations to 
the units listed in the rule. Missouri's rule provides that, by May 31 
of the year for which allowances are requested from the set-aside, the 
State will complete the process of determining what projects are 
eligible and how many allowances

[[Page 52832]]

should be provided, and of awarding the allowances to the projects. EPA 
interprets the rule to provide that, by the May 31 deadline, the State 
will transfer to the appropriate allowance tracking system accounts the 
allocations awarded to the eligible projects, as well as the surplus 
allowances provided to electric utilities.
    As with the annual program described above, Missouri has chosen to 
replace the provisions of the CAIR NOX ozone season model 
trading rule concerning allowance allocations with its own methodology. 
Missouri has chosen to distribute NOX annual allowances to 
individual facilities based upon the total of their individual unit's 
pro-rata share of the State's total heat input for all affected units 
in the State. The State has provided a table in rule 10 CSR 10-6.364 
that provides for permanent allocations to NOX ozone season 
units in Phases I and II. As mentioned above, Missouri has chosen to 
expand the applicability provisions of the CAIR NOX ozone 
season trading program to include all current and future non-EGUs in 
the State's NOX SIP Call trading program. By doing so, the 
three non-EGUs listed in Table II of Missouri's NOX SIP Call 
rule, 10 CSR 10-6.360, are provided CAIR NOX ozone season 
allowances totaling 59 allowances in Table II of 10 CSR 10-6.364 that 
are in addition to the State's initial allocation for both Phase I and 
Phase II of the CAIR NOX ozone season trading program. The 
number of allowances provided to the non-EGUs in the CAIR 
NOX ozone trading program are equivalent to the amount they 
received under Missouri's NOX SIP Call rule.

E. Allocation of NOX Allowances From Compliance Supplement Pool

    The CAIR establishes a compliance supplement pool (CSP) 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.
    Missouri has chosen to distribute CSP allowances using an 
allocation methodology that retains much of the CSP model rule language 
of 40 CFR 96.143. The State's methodology differs in two main ways. 
First, the State has added additional criteria for units subject to the 
Acid Rain Program that do not have an applicable NOX 
emission limit to be able to apply for allocations from the CSP by 
limiting their emissions below what limit would have applied had the 
unit been limited by Acid Rain Program or State NOX emission 
rate limits. Secondly, the State has chosen to modify the distribution 
methodology in the event the CSP is over-prescribed. If more requests 
for allocations have been made than CSP allowances exist, the State 
will divide the CSP into two pools. The smaller of the two pools is for 
units that combust tires, and the larger pool is for the remaining 
units.

F. Individual Opt-in Units

    The opt-in provisions of the CAIR SIP model trading rules allow 
certain non-EGUs (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. Missouri 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 NOX 
annual, CAIR NOX ozone season, and CAIR SO2 
trading programs.

VI. Proposed Actions

    EPA is proposing to approve Missouri's full CAIR SIP revision 
submitted on May 18, 2007. Under this SIP revision, Missouri 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 approves this SIP revision, 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 Missouri. This action would delete and reserve 40 CFR 
52.1341 and 40 CFR 52.1342.

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).

[[Page 52833]]

    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 CAA. 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 CAA. 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 CAA. 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, Incorporation by reference, Intergovernmental relations, 
Nitrogen oxides, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur dioxide.

    Dated: September 10, 2007.
John B. Askew,
Regional Administrator, Region 7.
[FR Doc. E7-18263 Filed 9-14-07; 8:45 am]

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