Document ID: EPA-R05-OAR-2018-0125-0004
Agency: epa
Document Type: Rule
Title: Final approval of the Ohio NOx/CAIR rules, revision to OAC 3745-14 and removal of OAC 3745-109
Posted Date: 2019-09-17T04:00Z

[Federal Register Volume 84, Number 180 (Tuesday, September 17, 2019)]
[Rules and Regulations]
[Pages 48789-48791]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-19781]

[[Page 48789]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R05-OAR-2018-0125; FRL-9999-47--Region 5]

Air Plan Approval; Ohio; Revisions to NOX SIP Call and CAIR Rules

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is approving under 
the Clean Air Act (CAA) a request from the Ohio Environmental 
Protection Agency (Ohio EPA) to revise the Ohio State Implementation 
Plan (SIP) to incorporate revisions to Ohio Administrative Code (OAC) 
Chapter 3745-14 regarding the Nitrogen Oxides (NOX) SIP Call 
and the removal of OAC Chapter 3745-109 regarding the Clean Air 
Interstate Rule (CAIR). This SIP revision ensures continued compliance 
by Electric Generating Units (EGUs) and large non-EGUs with the 
requirements of the NOX SIP Call.

DATES: This final rule is effective on October 17, 2019.

ADDRESSES: EPA has established a docket for this action under Docket ID 
No. EPA-R05-OAR-2018-0125. All documents in the docket are listed on 
the www.regulations.gov website. Although listed in the index, some 
information is not publicly available, i.e., Confidential Business 
Information (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 
through www.regulations.gov or at the Environmental Protection Agency, 
Region 5, Air and Radiation Division, 77 West Jackson Boulevard, 
Chicago, Illinois 60604. This facility is open from 8:30 a.m. to 4:30 
p.m., Monday through Friday, excluding Federal holidays. We recommend 
that you telephone Eric Svingen, Environmental Engineer, at (312) 353-
4489 before visiting the Region 5 office.

FOR FURTHER INFORMATION CONTACT: Eric Svingen, Environmental Engineer, 
Attainment Planning and Maintenance Section, Air Programs Branch (AR-
18J), Environmental Protection Agency, Region 5, 77 West Jackson 
Boulevard, Chicago, Illinois 60604, (312) 353-4489, 
svingen.eric@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA. This supplementary information 
section is arranged as follows:

I. Summary of Proposed Action
II. What comments did EPA receive?
III. What actions is EPA taking?
IV. Incorporation by Reference
V. Statutory and Executive Order Reviews

I. Summary of Proposed Action

    Under CAA section 110(a)(2)(D)(i)(I), called the good neighbor 
provision, states are required to address interstate transport of air 
pollution. Specifically, the good neighbor provision provides that each 
state's SIP must contain provisions prohibiting emissions from within 
that state from contributing significantly to nonattainment of the 
National Ambient Air Quality Standards (NAAQS), or interfering with 
maintenance of the NAAQS, in any other state.
    On October 27, 1998, EPA published the NOX SIP Call, 
which required eastern states, including Ohio, to submit SIPs that 
prohibit excessive emissions of ozone season NOX by 
implementing statewide emissions budgets (63 FR 57356). The 
NOX SIP Call addressed the good neighbor provision for the 
1979 ozone NAAQS and was designed to mitigate the impact of transported 
NOX emissions, one of the precursors of ozone. EPA developed 
the NOX Budget Trading Program, an allowance trading program 
that states could adopt to meet their obligations under the 
NOX SIP Call. This trading program allowed certain EGUs and 
large non-EGUs to participate in a regional cap and trade program. In 
fulfillment of the requirements of the NOX SIP Call, Ohio 
EPA promulgated OAC Chapter 3745-14 which, among other things, required 
EGUs and large non-EGUs in the state to participate in the 
NOX Budget Trading Program. On August 5, 2003, EPA published 
an action approving OAC Chapter 3745-14 into the Ohio SIP (68 FR 
46089).
    On May 12, 2005, EPA published CAIR, which required eastern states, 
including Ohio, to submit SIPs that prohibited emissions consistent 
with annual and ozone season NOX budgets and annual sulfur 
dioxide (SO2) budgets (70 FR 25152). CAIR addressed the good 
neighbor provision for the 1997 ozone NAAQS and 1997 fine particulate 
matter (PM2.5) NAAQS. Like the NOX SIP Call, CAIR 
also established several trading programs that states could use as 
mechanisms to comply with the budgets. When the CAIR trading program 
for ozone season NOX was implemented beginning in 2009, EPA 
discontinued administration of the NOX Budget Trading 
Program, but the requirements of the NOX SIP Call continued 
to apply. To meet the requirements of CAIR, Ohio EPA promulgated OAC 
Chapter 3745-109, which required EGUs to participate in the CAIR annual 
SO2 and annual and ozone season NOX trading 
programs. Participation by EGUs in the CAIR trading program for ozone 
season NOX addressed the state's obligation under the 
NOX SIP Call for those units. Ohio EPA also opted to 
incorporate large non-EGUs previously regulated under OAC Chapter 3745-
14 into OAC Chapter 3745-109, to meet the obligations of the 
NOX SIP Call with respect to those units through the CAIR 
trading program as well. On September 25, 2009, EPA published an action 
approving OAC Chapter 3745-109 into the Ohio SIP (74 FR 48857).
    On August 8, 2011, EPA published the Cross-State Air Pollution Rule 
(CSAPR) to replace CAIR and to address the good neighbor provision for 
the 1997 ozone NAAQS, the 1997 PM2.5 NAAQS, and the 2006 
PM2.5 NAAQS (76 FR 48208). Through Federal Implementation 
Plans (FIPs), CSAPR required EGUs in eastern states, including Ohio, to 
meet annual and ozone season NOX budgets and annual 
SO2 budgets implemented through new trading programs. CSAPR 
also contained provisions that would sunset CAIR-related obligations on 
a schedule coordinated with the implementation of the CSAPR compliance 
requirements. Participation by a state's EGUs in the CSAPR trading 
program for ozone season NOX generally addressed the state's 
obligation under the NOX SIP Call for EGUs. However, CSAPR 
did not initially contain provisions allowing states to incorporate 
large non-EGUs into that trading program to meet the requirements of 
the NOX SIP Call for non-EGUs.
    EPA stopped administering the CAIR trading programs with respect to 
emissions occurring after December 31, 2014, and EPA began implementing 
CSAPR on January 1, 2015.
    On October 26, 2016, EPA published the CSAPR Update, which 
established a new ozone season NOX trading program for EGUs 
in eastern states, including Ohio, to address the good neighbor 
provision for the 2008 ozone NAAQS (81 FR 74504). As under CSAPR, 
participation by a state's EGUs in the new CSAPR trading program for 
ozone season NOX generally addressed the state's obligation 
under the NOX SIP Call for EGUs. The CSAPR Update also 
expanded options available to states for meeting NOX SIP 
Call requirements for large non-EGUs by allowing states to

[[Page 48790]]

incorporate those units into the new trading program.
    After evaluating the various options available following CSAPR 
Update, Ohio EPA chose to meet the ongoing NOX SIP Call 
requirements for existing and new large non-EGUs by modifying its 
existing regulations at OAC Chapter 3745-14 to make the portion of the 
budget assigned to large non-EGUs under that program enforceable 
without an allowance trading mechanism.
    Specifically, while Ohio rescinded portions of its NOX 
Budget Trading Program rules under OAC Chapter 3745-14 pertaining to 
individual unit allowance allocations and trading, the state retained 
and amended the provisions of those rules pertaining to applicability, 
the statewide emissions budgets for EGUs and large non-EGUs, and 
monitoring and reporting under 40 CFR part 75. Ohio also retained a 
provision of the trading program rules exempting EGUs covered by a more 
recent ozone season NOX trading program from coverage under 
the state's amended program, but updated the provision to base the 
exemption on participation in the CSAPR Update trading program for 
ozone season NOX instead of the corresponding CAIR trading 
program. In addition, Ohio retained other rules under OAC Chapter 3745-
14 addressing NOX emissions from cement kilns and stationary 
internal combustion engines outside the NOX Budget Trading 
Program. Finally, Ohio also rescinded its CAIR trading program rules in 
OAC Chapter 3745-109 in full.
    Ohio's February 5, 2018 submission requests that EPA update Ohio's 
SIP to reflect the revised rules at OAC Chapter 3745-14 and the 
rescission of rules at OAC Chapter 3745-109. On June 27, 2019, EPA 
proposed to approve Ohio's request (84 FR 30681). EPA's proposed rule 
contains a detailed analysis of Ohio's submission.

II. What comments did EPA receive?

    In response to our proposed rule, EPA received one comment, 
submitted on behalf of the Ohio Utilities and Generation Group and its 
member companies. This comment was supportive of EPA's proposed action. 
Therefore, EPA is finalizing this action as proposed.

III. What actions is EPA taking?

    EPA is approving Ohio EPA's request to modify its SIP to include 
the revisions at OAC Chapter 3745-14 and to remove OAC Chapter 3745-
109.

IV. Incorporation by Reference

    In this rule, EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, EPA is finalizing the incorporation by reference of the Ohio 
Regulations described in the amendments to 40 CFR part 52 set forth 
below. EPA has made, and will continue to make, these documents 
generally available through www.regulations.gov, and at the EPA Region 
5 Office (please contact the person identified in the ``For Further 
Information Contact'' section of this preamble for more information). 
Therefore, these materials have been approved by EPA for inclusion in 
the State implementation plan, have been incorporated by reference by 
EPA into that plan, are fully federally enforceable under sections 110 
and 113 of the CAA as of the effective date of the final rulemaking of 
EPA's approval, and will be incorporated by reference in the next 
update to the SIP compilation.\1\
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    \1\ 62 FR 27968 (May 22, 1997).
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    Also in this document, as described in the amendments to 40 CFR 
part 52 set forth below, EPA is finalizing the removal of provisions of 
the EPA-Approved Ohio Regulations and Statutes from the Ohio SIP, which 
is incorporated by reference in accordance with the requirements of 1 
CFR part 51.

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve state choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves state law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by state 
law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Is not an Executive Order 13771 (82 FR 9339, February 2, 
2017) regulatory action because SIP approvals are exempted under 
Executive Order 12866;
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     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);
     Does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the CAA; and
     Does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the CAA, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by November 18, 2019. Filing a petition for 
reconsideration by the

[[Page 48791]]

Administrator of this final rule does not affect the finality of this 
action for the purposes of judicial review nor does it extend the time 
within which a petition for judicial review may be filed, and shall not 
postpone the effectiveness of such rule or action. This action may not 
be challenged later in proceedings to enforce its requirements. (See 
section 307(b)(2).)

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Nitrogen dioxide, Ozone, 
Particulate matter, Reporting and recordkeeping requirements, Sulfur 
oxides.

    Dated: August 27, 2019.
Cathy Stepp,
Regional Administrator, Region 5.

    40 CFR part 52 is amended as follows:

PART 52--APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS

0
1. The authority citation for part 52 continues to read as follows:

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

0
2. In Sec.  52.1870, the table in paragraph (c) is amended by:
0
a. Revising the section entitled ``Chapter 3745-14 Nitrogen Oxides--
Reasonably Available Control Technology''; and
0
b. Removing the section entitled ``Chapter 3745-109 Emissions Trading 
Programs''.
    The revision reads as follows:

Sec.  52.1870  Identification of plan.

* * * * *
    (c) * * *

                                       EPA-Approved State Ohio Regulations
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                                                         Ohio
       Ohio citation                 Subject          effective      EPA approval date           Comments
                                                         date
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                    Chapter 3745-14 Nitrogen Oxides--Reasonably Available Control Technology
----------------------------------------------------------------------------------------------------------------
3745-14-01.................  Definitions and           1/28/2018  9/17/19, [insert
                              General Provisions.                  Federal Register
                                                                   citation].
3745-14-03.................  The NOX Budget Permit     1/28/2018  9/17/19, [insert
                              Requirements.                        Federal Register
                                                                   citation].
3745-14-04.................  Compliance                1/28/2018  9/17/19, [Insert
                              Certification.                       Federal Register
                                                                   citation].
3745-14-08.................  Monitoring and            1/28/2018  9/17/19, [insert
                              Reporting.                           Federal Register
                                                                   citation].
3745-14-11.................  Portland Cement Kilns.    7/18/2002  8/5/2003, 68 FR 46089.
3745-14-12.................  Stationary Internal        5/7/2005  2/4/2008, 73 FR 6427..
                              Combustion Engines.
 
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[FR Doc. 2019-19781 Filed 9-16-19; 8:45 am]
 BILLING CODE 6560-50-P