Document ID: EPA-R07-OAR-2023-0279-0004
Agency: epa
Document Type: Rule
Title: Air Plan Approval:Missouri; Revisions to the Cross-State Air Pollution Rule SO2Group 1 Trading Program,
Posted Date: 2023-10-04T04:00Z

[Federal Register Volume 88, Number 178 (Friday, September 15, 2023)]
[Rules and Regulations]
[Pages 63529-63532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-19947]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R07-OAR-2023-0279; FRL-10989-02-R7]

Air Plan Approval; Missouri; Revisions to the Cross-State Air 
Pollution Rule SO2 Group 1 Trading Program

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking final 
action to approve revisions to the State Implementation Plan (SIP) 
submitted on November 29, 2021, by the State of Missouri. This final 
action approves revisions to a state regulation related to the Cross-
State Air Pollution Rule SO2 Group 1 Trading Program. The 
revisions alter the amounts of CSAPR SO2 Group 1 emission 
allowances that are allocated to two of the state's units from the 
state's annual emissions budgets. Additionally, the revisions make non-
substantive revisions to rule language that excludes certain provisions 
in the Code of Federal Regulations from incorporation by reference into 
the state's regulations. Approval of these revisions will ensure 
Federal enforceability of the State's rules. The EPA's approval of 
these SIP revisions is being done in accordance with the requirements 
of the Clean Air Act (CAA).

DATES: This final rule is effective October 16, 2023.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-R07-OAR-2023-0279. 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., 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 through www.regulations.gov or 
please contact the person identified in the FOR FURTHER INFORMATION 
CONTACT section for additional information.

FOR FURTHER INFORMATION CONTACT: Gerald McIntyre, Environmental 
Protection Agency, Region 7 Office, Air Permitting and Planning Branch, 
11201 Renner Boulevard, Lenexa, Kansas 66219; telephone number: (913) 
608-

[[Page 63530]]

8349; email address: [email protected].

SUPPLEMENTARY INFORMATION: Throughout this document ``we,'' ``us,'' and 
``our'' refer to the EPA.

Table of Contents

I. Background
II. What is being addressed in this document?
III. Have the requirements for approval of a SIP revision been met?
IV. What action is the EPA taking?
V. Incorporation by Reference
VI. Statutory and Executive Order Reviews

I. Background

    In the Notice of Proposed Rulemaking (NPRM) for this action (88 FR 
39801), the EPA explained the background for the Cross-State Air 
Pollution Rule (CSAPR) and its relationship to the proposed revision to 
Missouri's SIP. In this final rule, the EPA is providing additional 
background information from previous CSAPR actions that does not alter 
the EPA's analysis or decision to approve the proposed revision to 
Missouri's SIP.
    As detailed in the NPRM, the Cross-State Air Pollution Rule (CSAPR) 
addresses air pollution from upwind states that crosses state lines and 
affects air quality in downwind states. CSAPR requires fossil fuel-
fired electric generating units at coal-, gas-, and oil-fired 
facilities in 27 states, including Missouri, to reduce emissions to 
help downwind areas attain fine particle and/or ozone National Ambient 
Air Quality Standards (NAAQS).
    The emissions reductions required by CSAPR are implemented through 
requirements for affected sources to participate in several CSAPR 
allowance trading programs for emissions of sulfur dioxide 
(SO2) and/or nitrogen oxides. Under a given allowance 
trading program, after each control period, each affected source is 
required to surrender an amount of tradable emission allowances based 
on the source's emissions during the control period. The trading 
programs achieve the required emissions reductions by limiting the 
total quantities of allowances made available for use by all 
participating sources rather than by imposing unit-specific emission 
control requirements. The total amount of allowances that may be newly 
allocated among the sources in each state for a given control period is 
referred to as the state's emissions budget for the control period.
    CSAPR was initially promulgated in the form of Federal 
Implementation Plan (FIP) requirements (76 FR 48208). However, the 
CSAPR regulations include provisions under which the EPA will approve 
certain types of optional SIP revisions--referred to as ``abbreviated 
CSAPR SIP'' and ``full CSAPR SIP'' revisions--to modify or replace the 
FIP provisions while allowing states to continue to meet their 
underlying obligations using the CSAPR trading programs.\1\
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    \1\ See 40 CFR 52.38, 52.39. States also retain the ability to 
submit SIP revisions to meet their underlying obligations using 
mechanisms other than the CSAPR federal trading programs or 
integrated state trading programs.
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    An approved abbreviated CSAPR SIP revision replaces the EPA's 
default unit-level allowance allocation provisions for the state's 
units with the state's own unit-level allowance allocation provisions 
while leaving the corresponding CSAPR FIP and all other provisions of 
the relevant Federal trading program in place for the state's units. 
Under such a SIP revision, a state has complete flexibility as to how 
to initially allocate allowances among its units for each control 
period, as long as the overall quantity of allowances allocated does 
not exceed the state's emission budget for the control period.
    An approved full CSAPR SIP revision replaces a CSAPR Federal 
trading program for the state's units with a state trading program 
integrated with the Federal trading program. For a full CSAPR SIP 
revision to be approvable, the state's trading program regulations must 
be substantively identical to the corresponding Federal CSAPR trading 
program regulations with two exceptions. First, the state has the same 
flexibility with respect to unit-level allowance allocations it would 
have under an abbreviated CSAPR SIP revision. Second, the state must 
not regulate units located in Indian country not subject to the state's 
Clean Air Act planning jurisdiction, with the consequence that if the 
state's trading program regulations incorporate the relevant Federal 
trading program regulations by reference, the incorporation by 
reference must exclude the provisions of the Federal regulations that 
relate to units in Indian country.
    In 2015, Missouri adopted state regulations at 10 Code of State 
Regulations (CSR) 10-6.376 establishing state-determined unit-level 
allocations of CSAPR SO2 Group 1 allowances to replace the 
EPA's default allocations. The EPA approved the state's regulations as 
an abbreviated CSAPR SIP revision on June 28, 2016 (see 81 FR 41838). 
Missouri's allocations replicated the EPA's default allocations with 
the exception that the state allocated 1,300 more allowances to Asbury 
Unit 1 and 1,300 fewer allowances to Iatan Unit 1.
    In 2018, Missouri adopted revisions to 10 CSR 10-6.376 
incorporating into the state's regulations by reference all the 
provisions of the Federal CSAPR SO2 Group 1 Trading Program 
regulations at 40 CFR 97.602 through 97.635 except the EPA's default 
unit-level allowance allocation provisions and the provisions relating 
to units located in Indian country. The EPA approved the revisions as a 
full CSAPR SIP revision on December 4, 2019 (see 84 FR 66316). The 
revisions replaced the Federal CSAPR SO2 Group 1 Trading 
Program regulations for Missouri units with Missouri's CSAPR 
SO2 Group 1 Trading Program regulations but made no changes 
to the previously adopted provisions of 10 CSR 10-6.376 concerning 
Missouri's unit-level allowance allocations.
    On November 29, 2021, Missouri submitted further revisions to 10 
CSR 10-6.376 for approval by the EPA into the state's SIP.

II. What is being addressed in this document?

    The EPA is approving the SIP revision submitted by the State of 
Missouri on November 29, 2021. Missouri requested the EPA to approve 
revisions to 10 CSR 10-6.376 in the Missouri SIP.
    First, the state has revised its rule to reallocate 1,300 CSAPR 
SO2 Group 1 emission allowances for each control period from 
Asbury Unit 1, which was retired in March 2020, to Iatan Unit 1. The 
total amount of CSAPR SO2 Group 1 allowances allocated by 
the state to Iatan Unit 1 will increase from 9,833 to 11,133. The total 
amount of CSAPR SO2 Group 1 allowances allocated by the 
state to Asbury Unit 1 will decrease from 4,480 to 3,180. (Under other 
existing provisions of 10 CSR 10-6.376, the remaining 3,180 allowances 
allocated to Asbury Unit 1 will be transferred to the new unit set-
aside and then redistributed to other units in the state.) The state's 
revisions do not change the overall quantity of allowances made 
available under the trading program and will therefore have no 
environmental effect. Because the regulations at 40 CFR 52.39 governing 
approvability of CSAPR SIP revisions give a state complete flexibility 
as to how the state initially allocates the allowances in its emissions 
budget for each control period among the state's units, Missouri's 
revision to the unit-level allocation provisions of its rule is 
approvable.
    Second, Missouri has made non-substantive revisions to the rule 
language concerning the provisions excluded from incorporation by 
reference. The revisions do not change

[[Page 63531]]

the set of provisions of the Federal regulations that are excluded from 
the state's regulations--i.e., the provisions relating to the EPA's 
default unit-level allowance allocations and the provisions relating to 
units located in Indian country. The regulations at 40 CFR 52.39 do not 
prescribe specific language that must be used to accomplish the 
exclusion of these provisions, so Missouri's editorial revision to the 
rule language is approvable.

III. Have the requirements for approval of a SIP revision been met?

    The State submission has met the public notice requirements for SIP 
submissions in accordance with 40 CFR 51.102. The submission also 
satisfied the completeness criteria of 40 CFR part 51, appendix V. The 
State provided public notice on this SIP revision from April 15, 2021 
to May 27, 2021 and received no comments. The NPRM and supporting 
information contained in the docket were made available for public 
comment from June 20, 2023, to July 20, 2023 (88 FR 39801) and no 
comments were received. In addition, as explained above, the revision 
meets the substantive SIP requirements of the CAA, including section 
110 and implementing regulations.

IV. What action is the EPA taking?

    The EPA is taking final action to amend the SIP by approving the 
State's request in its submission dated November 29, 2021 to revise 10 
CSR 10-6.376 ``Cross-State Air Pollution Rule Annual SO2 
Group 1 Trading Program.'' Because the EPA has already recorded 
Missouri's previously submitted unit-level allocations of CSAPR 
SO2 Group 1 allowances issued for control periods through 
2024 in the sources' compliance accounts, Missouri's revised unit-level 
allocations will take effect starting with allowances issued for the 
2025 control period, in accordance with 40 CFR 52.39(f)(1)(iv) and 10 
CSR 10-6.376(3)(A)1.D.

V. Incorporation by Reference

    In this document, the EPA is finalizing regulatory text that 
includes incorporation by reference. In accordance with requirements of 
1 CFR 51.5, the EPA is finalizing the incorporation by reference of the 
revised version of Missouri 10 CSR 10-6.376, state effective date July 
29, 2021, setting forth the revised version of the state's CSAPR 
SO2 Group 1 Trading Program. The EPA has made, and will 
continue to make, these materials generally available through 
www.regulations.gov and at the EPA Region 7 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 the 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 the EPA's approval, and will be incorporated by reference 
in the next update to the SIP compilation.\2\
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    \2\ 62 FR 27968, May 22, 1997.
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VI. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Clean Air Act 
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 Clean Air Act. 
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);
     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); and
     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 Clean Air Act;
    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).
    Executive Order 12898 (Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
Feb. 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on minority populations and low-income 
populations to the greatest extent practicable and permitted by law. 
EPA defines environmental justice (EJ) as ``the fair treatment and 
meaningful involvement of all people regardless of race, color, 
national origin, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies.'' EPA further defines the term fair treatment to mean that 
``no group of people should bear a disproportionate burden of 
environmental harms and risks, including those resulting from the 
negative environmental consequences of industrial, governmental, and 
commercial operations or programs and policies.''
    Missouri did not evaluate environmental justice considerations as 
part of its SIP submittal; the CAA and applicable implementing 
regulations neither prohibit nor require such an evaluation. EPA did 
not perform an EJ analysis and did not consider EJ in this action. 
Consideration of EJ is not required as part of this action, and there 
is no information in the record inconsistent with the stated goal of 
E.O. 12898 of achieving environmental justice for people of color, low-
income populations, and Indigenous peoples.
    This action is subject to the Congressional Review Act, and EPA 
will submit a rule report to each House of the Congress and to the 
Comptroller General of the United States. This action is not a ``major 
rule'' as defined by 5 U.S.C. 804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by November 14, 2023. Filing a 
petition for reconsideration by the Administrator of

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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, Carbon monoxide, 
Incorporation by reference, Intergovernmental relations, Lead, Nitrogen 
dioxide, Ozone, Particulate matter, Reporting and recordkeeping 
requirements, Sulfur oxides, Volatile organic compounds.

    Dated: September 11, 2023.
Meghan A. McCollister,
Regional Administrator, Region 7.

    For the reasons stated in the preamble, the EPA amends 40 CFR part 
52 as set forth below:

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.

Subpart AA--Missouri

0
2. In Sec.  52.1320, the table in paragraph (c) is amended by revising 
the entry ``10-6.376'' to read as follows:

Sec.  52.1320  Identification of plan.

* * * * *
    (c) * * *

                                        EPA-Approved Missouri Regulations
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                                                           State
        Missouri  citation                Title          effective    EPA approval date         Explanation
                                                            date
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                                    Missouri Department of Natural Resources
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                                                  * * * * * * *
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    Chapter 6--Air Quality Standards, Definitions, Sampling and Reference Methods, and Air Pollution Control
                                      Regulations for the State of Missouri
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                                                  * * * * * * *
10-6.376.........................  Cross-State Air        7/29/2021  9/15/2023, [insert   ......................
                                    Pollution Rule SO2                Federal Register
                                    Group 1 Trading                   citation].
                                    Program.
 
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[FR Doc. 2023-19947 Filed 9-14-23; 8:45 am]
BILLING CODE 6560-50-P