Document ID: EPA-HQ-OAR-2004-0076-0319
Agency: epa
Document Type: Notice
Title: Final Notice of Data Availability for EGU NOX Annual and NOX Ozone Season Allocations for the Clean Air Interstate Rule Federal Implementation Plan Trading Programs
Posted Date: 2007-11-02T04:00Z

[Federal Register: November 2, 2007 (Volume 72, Number 212)]
[Notices]               
[Page 62238-62245]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02no07-48]                         

-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

[EPA-HQ-OAR-2004-0076; FRL-8490-4]

 
Final Notice of Data Availability for EGU NOX Annual and NOX 
Ozone Season Allocations for the Clean Air Interstate Rule Federal 
Implementation Plan Trading Programs

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of data availability (NODA).

-----------------------------------------------------------------------

SUMMARY: On March 15, 2006, EPA promulgated Federal Implementation 
Plans (FIPs) for all States covered by the Clean Air Interstate Rule 
(CAIR). The CAIR FIPs will regulate electric generating units (EGUs) in 
the affected States and achieve the emission reductions required by 
CAIR until each affected State has an approved CAIR State 
Implementation Plan (SIP) to achieve the reductions. EPA will withdraw 
a State's FIP in coordination with approval of a full CAIR SIP 
implementing the requirements of CAIR.
    The CAIR FIP indicates that the Administrator will determine by 
order the CAIR NOX allowance allocations. In the CAIR FIP, 
EPA stated that it would publish a NODA with NOX allowance 
allocations for 2009 through 2014, provide the public with the 
opportunity to object to the allocations and underlying data, and then 
publish a final NODA (adjusted if necessary). On August 4, 2006, EPA 
published a preliminary NODA in the Federal Register and accepted 
objections to the data through an electronic docket. This action 
constitutes the final NODA and indicates the existing units receiving 
CAIR NOX allowances under the FIPs and the quantity of 
allowances to be allocated to each unit. These FIP allowances will only 
be recorded for sources located in States that do not have an approved 
SIP in place. Most States have an approved SIP in place, and the State 
determined allowances will be recorded for sources in these states.
    In this NODA, the EPA is making available to the public the 
Agency's final determination of the NOX annual and 
NOX ozone season allocations under the CAIR FIPs that EPA is 
making

[[Page 62239]]

to individual existing units under the CAIR FIP NOX annual 
and NOX ozone season trading programs for 2009 through 2014, 
as well as the data relating to those allocations. The NODA references, 
or presents in tables, all these data and the NOX annual and 
NOX ozone season allowance allocations calculated using the 
data and the allocation formulas finalized in the CAIR FIPs for 
existing units for 2009 through 2014.

DATES: The recordation deadline for 2009 CAIR FIP NOX 
allowances is September 30, 2007. EPA intends to record CAIR FIP 
NOX allowances in the fall of 2007. EPA is close to taking 
final action on many SIPs. Because it is EPA's preference to have 
States determine allowances, EPA is trying to finalize these approvals 
before allocating FIP allowances, so wherever possible, State-
determined allowances will be allocated to sources.
    Docket: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2004-0076. All documents in the docket are 
listed in the http://www.regulations.gov index. Although listed in the index, 

some information is not publicly available, i.e., confidential business 
information 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 EPA Docket 

Center, EPA West, Room 3334, 1301 Constitution Avenue, NW., Washington, 
DC. The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 
through Friday, excluding legal holidays. The telephone number for the 
Public Reading Room is (202) 566-1744, and the telephone number for the 
Air Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: General questions concerning this 
action and technical questions concerning heat input or fuel data 
should be addressed to Brian Fisher, USEPA Headquarters, Ariel Rios 
Building, 1200 Pennsylvania Ave., Mail Code 6204 J, Washington, DC 
20460. Telephone at (202) 343-9633, e-mail at fisher.brian@epa.gov.
    If mailing by courier, address package to Brian Fisher, 1310 L St., 
NW., RM 713G, Washington, DC 20005.

SUPPLEMENTARY INFORMATION:

Outline

1. General Information
2. What Is This Action?
3. How Are the Data in this NODA Related to the CAIR FIP 
NOX Allowance Allocations?
4. What Are the Sources of the EPA's Data?
5. How Do I Interpret the Data Tables Presented Through This NODA?
6. Is the EPA Requesting Objections to These Data?
7. What Data Is EPA Making Available?
8. Where Can I Get the Data Discussed in This NODA?

1. General Information

    This action relates to Sec. Sec.  97.141 and 97.341 of the CAIR 
FIP. These sections indicate that the Administrator will determine by 
order the CAIR NOX allowance allocations. In the CAIR FIP, 
EPA stated that it would publish a NODA with NOX allowance 
allocations for 2009 through 2014 (71 FR 25352).

Does This Action Apply to Me?

    Categories and entities potentially regulated by this action 
include the following:

------------------------------------------------------------------------
                                                         Examples of
          Category                 NAICS code            potentially
                                                     regulated entities
------------------------------------------------------------------------
Industry....................  221112..............  Fossil fuel-fired
                                                     electric utility
                                                     steam generating
                                                     units.
Federal Government..........  221122..............  Fossil fuel-fired
                                                     electric utility
                                                     steam generating
                                                     units.
State/local/Tribal            221122..............  Fossil fuel-fired
 government.                                         electric utility
                                                     steam generating
                                                     units owned by
                                                     municipalities.
                              921150..............  Fossil fuel-fired
                                                     electric utility
                                                     steam generating
                                                     units in Indian
                                                     Country.
------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. If you have any questions regarding the applicability of this 
action to a particular entity, review Sec. Sec.  97.102, 97.104, and 
97.105 in the CAIR FIP concerning NOX annual emissions and 
Sec. Sec.  97.302, 97.304, and 97.305 in the CAIR FIP concerning 
NOX ozone season emissions. You may also consult the person 
listed in the preceding section under FOR FURTHER INFORMATION CONTACT.
    The NOX allowance allocations in this NODA are for 
existing units. Existing units are units that commenced operation 
before January 1, 2001. New units, which commence operation on or after 
January 1, 2001, will initially receive allowances through the new unit 
set aside. Once new units have established a five-year baseline, they 
will be incorporated into the calculation for allowances for existing 
units for future years to the extent the allowances for existing units 
have not already been allocated.
    The CAIR FIP rule states units will be subject to the CAIR FIP 
trading programs (i.e, to the CAIR FIP SO2, NOX 
annual, or NOX ozone season programs, as appropriate) if 
they are a stationary, fossil-fuel-fired boiler or stationary, fossil-
fuel-fired combustion turbine serving at any time on or after November 
15, 1990 or the start-up of the unit's combustion chamber, a generator 
with nameplate capacity of more than 25 MWe producing electricity for 
sale. Certain cogeneration units or solid waste incineration units 
meeting these general applicability requirements are exempt from the 
CAIR FIPs and are described below. The inventory of existing potential 
CAIR units, which comprises the units allocated allowances under this 
NODA, is based on EPA's preliminary application of the general 
applicability requirements and these exemptions. As discussed in the 
preliminary NODA and in this action, the inventory does not reflect a 
final determination of which units are subject to the CAIR FIPs.

Cogeneration Unit Exemption

    Certain cogeneration units meeting the general applicability 
requirements are exempt from the CAIR FIP trading programs. 
Cogeneration units are units having equipment used to produce 
electricity and useful thermal energy for industrial, commercial, 
heating, or cooling purposes through sequential use of energy and 
meeting certain operating and efficiency standards. Any cogeneration 
unit not serving at any time (since the later of November 15, 1990 or 
the start-up of the unit) a generator with a nameplate capacity greater 
than 25 MWe, supplying more than \1/3\ potential electric output 
capacity, and more than 219,000 Mw-hrs, annually to any utility power 
distribution system for sale is exempt from the requirements of the 
CAIR FIP trading rules. Otherwise, a cogeneration

[[Page 62240]]

unit meeting the general applicability requirements is subject to the 
CAIR FIPs.
    The CAIR FIP defined ``cogeneration unit'' as a stationary, fossil-
fuel-fired boiler or stationary, fossil-fuel-fired combustion turbine:
    (1) Having equipment used to produce electricity and useful thermal 
energy for industrial, commercial, heating, or cooling purposes through 
the sequential use of energy; and
    (2) Producing during the 12-month period starting on the date the 
unit first produces electricity and during any calendar year after the 
calendar year in which the unit first produces electricity--
    (i) For a topping-cycle cogeneration unit,
    (A) Useful thermal energy not less than 5 percent of total energy 
output; and
    (B) Useful power that, when added to one-half of useful thermal 
energy produced, is not less then 42.5 percent of total energy input, 
if useful thermal energy produced is 15 percent or more of total energy 
output, or not less than 45 percent of total energy input, if useful 
thermal energy produced is less than 15 percent of total energy output.
    (ii) For a bottoming-cycle cogeneration unit, useful power not less 
than 45 percent of total energy input.
    Subsequent to the CAIR FIP rulemaking, EPA finalized another action 
that modified the definition of ``cogeneration unit'' (and made other 
revisions to the definitions under the CAIR FIPs) to exclude energy 
input from biomass fuel when calculating efficiency of cogeneration 
units that are boilers. This makes it possible for some additional 
cogeneration units that co-fire biomass to qualify for exemption from 
the CAIR FIP rules. The inventory of existing potential CAIR units and 
the allocation tables in this action that are based on the inventory 
reflect EPA's preliminary application of the revised cogeneration unit 
definition and the other revisions to the definitions under the CAIR 
FIPs.

Solid Waste Incinerator Exemption

    A solid waste incineration unit meeting the general applicability 
requirements and commencing operation before January 1, 1985, for which 
the average annual fuel consumption of non-fossil fuels during 1985-
1987 exceeded 80 percent and the average annual fuel consumption of 
non-fossil fuels during any 3 consecutive calendar years after 1990 
exceeds 80 percent, is not subject to the CAIR FIP cap-and-trade 
program. Further, a solid waste incineration unit meeting the general 
applicability requirements and commencing operation on or after January 
1, 1985, for which the average annual fuel consumption of non-fossil 
fuels for the first 3 calendar years of operation exceeds 80 percent 
and the average annual fuel consumption of non-fossil fuels during any 
3 consecutive calendar years after 1990 exceeds 80 percent, is not 
subject to the CAIR FIP cap- and trade program. The inventory of 
existing potential CAIR units, and the allocation tables in this action 
that are based on the inventory, reflect EPA's preliminary application 
of the solid waste incineration unit exemption.

2. What Is This Action?

    In the March 15, 2006 final action on the CAIR FIP, the EPA 
finalized NOX annual and ozone season trading programs for 
EGUs as the federal implementation remedy for CAIR. The EPA decided to 
adopt, as the FIP for each State in the CAIR region, the model cap-and-
trade programs in the final CAIR, modified slightly to allow for 
federal instead of State implementation (as revised March 15, 2006).
    These programs include a NOX annual trading program and 
NOX ozone season trading program. As explained in the CAIR 
FIP Notice of Final Rulemaking (NFR), the FIP NOX annual and 
NOX ozone season trading programs require CAIR sources to 
hold allowances sufficient to cover their emissions for each control 
period. A CAIR NOX annual allowance will authorize the 
emission of a ton of NOX during a calendar year, and a CAIR 
NOX ozone season allowance will authorize the emission of a 
ton of NOX during an ozone season (May 1 through September 
30).
    In the CAIR FIP NFR, EPA adopted the State NOX annual 
and NOX ozone season emission budgets for each State covered 
by a CAIR FIP (see Tables V-1 and V-2 in the CAIR FIP NFR); these are 
the same State emission budgets as finalized in the CAIR. For each 
State covered by the CAIR FIP NOX trading programs, the 
State NOX budgets are the total amount of allowances that 
EPA will allocate to sources in that State for use in the FIP 
NOX trading programs. EPA determined the method for 
allocating NOX annual and NOX ozone season 
allowances under the FIP through a process that included extensive 
public participation.
    In this action, we are finalizing the inventory of existing units 
that currently are potential CAIR units solely for purposes of 
allocating allowances for 2009-2014, the heat input, fuel type, and 
resulting baseline heat input data used to calculate the NOX 
allowance allocation to the identified existing potential CAIR units 
under the CAIR FIPs, and the resulting allowance allocations themselves 
for 2009-2014.\1\
---------------------------------------------------------------------------

    \1\ EPA notes that if, subsequent to this NODA, a determination 
is made that a source included in this inventory is not subject to 
CAIR, then the Administrator will deduct any unused allocated 
allowances as established in the procedures set forth in Sec. Sec.  
97.154(b) and 97.354(b), and transfer them to a new unit set-aside 
for the appropriate State.
---------------------------------------------------------------------------

    The inventory of existing potential CAIR units was proposed, and is 
finalized, only for the purpose of making allocations for 2009-2014. 
The inventory, and the data on which the inventory is based, can be 
revised in future NODAs addressing allocations. Furthermore, the 
inclusion of a unit in the inventory (and thus in the FIP allocations 
for 2009-2014) does not constitute a determination that the unit is 
subject to the requirements of the CAIR FIPs; similarly, the exclusion 
of a unit from the inventory (and thus from the allowance allocations 
for 2009-2014) does not constitute a determination that the unit is not 
covered by the CAIR FIPs. However, EPA has made specific determinations 
for certain individual units, for which objections concerning the 
inclusion in or exclusion from the inventory were submitted in response 
to this NODA or for which a request for an applicability determination 
was submitted under Sec.  97.104(c) or 97.304(c) are covered by a CAIR 
FIP. These determinations are binding, subject to any conditions set 
forth in the respective determinations and to any administrative 
appeals under Part 78 of EPA's regulations. Copies of these 
determinations are included in the docket for this NODA.
    EPA notes that, in some cases where objections to the inclusion of 
a unit in or exclusion of a unit from the inventory were submitted in 
response to this NODA or where a request for an applicability 
determination was submitted under Sec.  97.104(c) or 97.304(c), EPA 
issued an applicability determination that is used in developing the 
final inventory, and is included in the docket, for this NODA. However, 
in some cases EPA was unable to complete the applicability 
determination in time for issuance of this NODA. In the latter cases, 
the units are being included in the inventory of potential existing 
CAIR units and allocated allowances in this NODA. However, EPA intends 
to complete the process of issuing an applicability determination in 
each of these cases in the relatively near future. The inclusion of 
these units in the inventory in no way indicates what

[[Page 62241]]

applicability determination EPA will make and whether the units are 
subject to the CAIR FIPs. In fact, as discussed below, the CAIR FIPs 
include procedures for addressing units that are allocated CAIR FIP 
allowances but are subsequently determined not to be subject to the 
CAIR FIPs.
    This action explains what heat input and fuel type data, and 
resulting baseline heat inputs, are used in calculating the allocation 
for each potential existing unit and from where these data came. The 
EPA published a draft NODA in 2006 to provide opportunity for the 
public (including source owners and operators) to submit objections to 
the underlying data (including the resulting baseline heat inputs and 
allocations). This action incorporates data submitted through those 
objections if the data were determined to be the best available data. 
Under the CAIR FIP trading rules (40 CFR 97.142(a)(3) and 
97.342(a)(3)), we explained that we determine what data are the best 
available by ``weighing the likelihood that data are accurate and 
reliable and giving greater weight to data submitted to a governmental 
entity in compliance with legal requirements or substantiated by an 
independent entity.'' For existing potential CAIR units, this NODA 
represents the final determination of the heat input and fuel type data 
used in the allocations for 2009-2014. Similarly, this NODA represents 
the final determination of the 2009-2014 allocations themselves. 
However, EPA will issue NODAs in the future to address CAIR FIP 
allocations for 2009-2014 for new potential CAIR units and for 2015 and 
thereafter for existing and new potential CAIR units and will provide 
an opportunity for objections.
    The Agency's preference is for States to make decisions about 
NOX allocations for their sources. Although in this action 
EPA is determining NOX allocations for the CAIR FIP trading 
programs, we intend to record EPA-determined allocations in allowance 
accounts only for sources located in a State without a timely, approved 
CAIR SIP revision or a timely, approved abbreviated CAIR SIP revision 
providing for State-determined allocations. In future NODAs, EPA 
intends to determine allowance allocations only for States subject to 
the FIP at that time.
    Deadlines for States to submit CAIR SIP revisions and associated 
NOX allocations and for EPA to record NOX 
allocations in source accounts are as finalized in the CAIR (see 70 FR 
25162, 25323 and 25326) and CAIR FIP (see 71 FR 25328, 25352-55). EPA 
discusses these deadlines herein for informational purposes only. As 
finalized in the CAIR and CAIR FIP NFRs, SIP submission deadlines are 
as follows:
     Full CAIR SIP revision: Submit SIP revision by September 
11, 2006 and initial set of NOX allocations (covering at 
least 2009 through 2011) by October 31, 2006;
     Abbreviated CAIR SIP revision \2\: Submit SIP revision by 
March 31, 2007 and initial set of NOX allocations (covering 
at least 2009 through 2011) by April 30, 2007.
---------------------------------------------------------------------------

    \2\ See CAIR FIP NFR (71 FR 25352) for further discussion of 
abbreviated CAIR SIP revisions.
---------------------------------------------------------------------------

    In this action, EPA determines CAIR NOX allocations 
covering 2009 through 2014 under the CAIR FIPs. As finalized in the 
CAIR FIP NFR, the Agency will record EPA-determined CAIR NOX 
allocations in source accounts one year at a time for 2009 and 2010 in 
order to provide flexibility to States to determine allocations for 
their sources. The final schedule for recording CAIR NOX 
allocations under the FIP in source accounts is shown in Table VI-2 in 
the CAIR FIP NFR preamble and reproduced here for informational 
purposes:

      Table I.--Recordation Deadlines for CAIR FIP NOX Allocations
------------------------------------------------------------------------
                                            Deadline by which FIP NOX
                                         allocations are recorded  (EPA-
                                            determined allocations or
          CAIR control period              State-determined allocations
                                           using abbreviated CAIR  SIP
                                                    revision)
------------------------------------------------------------------------
2009...................................  September 30, 2007.*
2010...................................  September 30, 2008.
2011...................................  September 30, 2009.
2012...................................  September 30, 2009.
2013...................................  September 30, 2009.
2014...................................  December 1, 2010.
2015...................................  December 1, 2011.
2016...................................  December 1, 2012.
------------------------------------------------------------------------
* EPA intends to records these allowances in the Fall of 2007.

3. How Are the Data in This NODA Related to the CAIR FIP NOX 
Allowance Allocations?

    In the CAIR FIP NFR, EPA finalized the schedule for determining and 
recording NOX allocations. EPA also finalized a methodology 
for calculating unit level NOX allowances. This NODA 
provides the unit level NOX allocations for existing 
potential CAIR units for 2009 through 2014 calculated using this 
methodology, as well as the data used in determining the inventory of 
existing potential CAIR units and the heat input and fuel type data and 
resulting baseline heat inputs, used in making the allowance 
calculations.
    As provided in the CAIR FIP NOX annual and ozone season 
trading rules (see 40 CFR 97.141 and 97.341), EPA is publishing this 
NODA with CAIR FIP NOX allocations for existing potential 
CAIR units for 2009 through 2014. This final NODA reflects EPA's 
consideration of objections submitted to the 2006 CAIR FIP NODA that 
addressed whether any individual unit is treated as an existing 
potential CAIR unit eligible for allowance allocations in accordance 
with the applicability provisions in these trading rules (see 40 CFR 
97.104 and 97.305) and whether any unit allocation is determined in 
accordance with the allocation provisions in these trading rules (see 
40 CFR 97.142 and 97.342).
    In the CAIR FIP NFR, EPA finalized an allocation approach for 
NOX annual and ozone season allowances for existing units 
(i.e., units commencing operation before January 1, 2001) and new units 
(i.e., units commencing operation on or after January 1, 2001) that is 
consistent with the example methodology in the CAIR SIP model trading 
rules. EPA used the NOX allocation method finalized in the 
FIP NFR to calculate the existing unit NOX allocations in 
this NODA. This action does not address new unit allocations. New unit 
allocation and recordation provisions under the CAIR FIP may be found 
in Sec. Sec.  97.141, 97.341, 97.153 and 97.353. See 71 FR 25356-58 for 
detailed description of the allocation method. EPA will publish a 
preliminary and final NODA in 2009 for new unit allowance allocations 
for 2009.
    The NOX allocation method in the CAIR FIP NFR was 
finalized through a process that involved significant public 
participation. The NOX CAIR FIP NODA did not open the 
allocation method for public comment. EPA provides a summary of the 
NOX allocation method herein for informational purposes 
only.
    Allocations in this NODA are for existing units for the first 6 
control periods (2009 through 2014) of the CAIR NOX annual 
and NOX ozone season trading programs. The 2009 allowance 
allocations will be recorded in the fall of 2007. It is possible that 
future year allowance allocations (2010 through 2014) will differ from 
those in this NODA as new potential CAIR units develop baseline heat 
input values and are treated as existing potential CAIR units, and as 
units that are not potential CAIR units become potential CAIR units. 
The NOX allocation method finalized in the CAIR FIP NFR 
allocates by using annual heat input data from the years 2000 through 
2004 to develop baseline heat inputs. The annual heat input values are 
adjusted using fuel

[[Page 62242]]

adjustment factors (1.0 for coal-fired units, 0.6 for oil-fired units, 
and 0.4 for units fired with all other fuels (e.g., natural gas)). The 
3 highest annual heat input values for the unit are averaged to 
determine the unit's baseline heat input. Finally, the total amount of 
allowances available for allocation each year to existing units in a 
given State (i.e., 95% of the State trading budget) is allocated to 
each individual unit in proportion to the unit's share of the total 
baseline heat input for all existing potential CAIR units in the State. 
The same methodology applies for ozone season allowances, only ozone 
season heat input is used in place of annual heat input.
    This NODA provides unit NOX allocations calculated 
according to the method finalized in the CAIR FIP NFR. Section 8 of 
this NODA describes where to locate the allocation tables. The heat 
input and fuel type data used to determine these allocations are 
described in section 4 of this NODA.

4. What Are the Sources of EPA's Data?

A. Development of the Inventory of Existing Potential CAIR Units

    Diagram 1 in the Technical Support Document (TSD) provides a 
general overview of how the inventory of existing potential CAIR units 
was developed. Any existing unit currently reporting monitoring data 
under the Acid Rain Program (referred to in this NODA as ``Acid Rain 
units'') in a CAIR FIP State, except for an Acid Rain Program opt-in 
unit, was included as an existing potential CAIR unit. The list of Acid 
Rain units in the States was generated from EPA's Acid Rain Program 
database. Units not reporting monitoring data under the Acid Rain 
Program (referred to in this NODA as ``non-Acid Rain units'') that are 
existing potential CAIR units were identified using data reported by 
owners of generators to the Energy Information Administration (EIA) on 
forms 860 and 767 or through objections submitted by the source owners 
and operators.
    From the EIA form 860 database, EPA identified, for non-Acid Rain 
units, all generators with a nameplate capacity greater than 25 MWe 
served by a boiler or turbine with a fossil fuel energy source. In 
determining whether a unit has a fossil fuel energy source, EPA applied 
the definition of ``fossil fuel'' in the CAIR FIPs (40 CFR 97.102 and 
97.302). From that list we then excluded generators as follows:
     EPA excluded non-utility generators which did not sell 
electricity to a utility based on EIA form 860b data from 1999 and 
2000. EIA form 860b sales data were not available after 2000 due to 
changes in the EIA form 860b. Consequently, the exclusion of generators 
for purposes of allocating allowances in this NODA does not necessarily 
mean that these generators are excluded for purposes of determining 
whether boilers or turbines serving them are subject to the CAIR FIPs. 
EPA believes, based on preliminary consideration of the applicability 
provisions of the CAIR FIPS, that many of these units may not be 
subject to the CAIR FIPs. However, if, on or after November 15, 1990, 
any of these generators produced electricity that was sold, the units 
serving that generator may be subject to the CAIR FIPs.
     From EIA form 860, EPA excluded generators at municipal 
waste combustors. The CAIR rule provides an exemption for solid waste 
incineration units similar to the Acid Rain Program exemption in 40 CFR 
Part 72.
     From EIA form 860b (1999 and 2000), EPA excluded all 
generators at facilities that were certified (in accordance with 
Federal Energy Regulatory Commission (FERC) regulations) as qualifying 
cogeneration facilities and that had annual, plant-wide sales of one 
third or less of the potential generating capacity, or had annual sales 
less than 219,000 MW-hrs, to an electric utility. This information was 
only available at the plant level. Since electricity sales data were 
not available at the unit level for other years and a unit must meet 
these criteria annually to qualify for the cogeneration exemption, 
exclusion of generators for allocating allowances in this notice does 
not necessarily mean that boilers and combustion turbines serving the 
generators are not subject to the CAIR FIPs. Moreover, FERC regulations 
require, as part of the criteria for qualifying cogeneration facilities 
that facilities meet certain efficiency requirements to the extent 
natural gas or oil is combusted. Under CAIR, a unit must meet the 
efficiency requirements with regard to all fuel types combusted, 
except, in the case of boilers, biomass. Consequently, exclusion of 
generators for allocating allowances in this notice does not 
necessarily mean that boilers and combustion turbines serving the 
generators are not subject to the CAIR FIPs.
    From the EIA form 767 database, EPA identified as potential CAIR 
units all boilers located at non-Acid Rain plants (commencing operation 
before January 1, 2001) serving the generators remaining on the 
generator list after the above-described exclusions. Simple and 
combined cycle combustion turbines were identified based directly on 
the generator ID and prime mover type in EIA form 860.
    From EIA form 860 EPA identified all simple combustion turbines, at 
Acid Rain plants, with a nameplate capacity greater than 25 MWe, a 
fossil fuel energy source, and an online date prior to January 1991. 
These simple combustion turbines are potential CAIR units even though 
they may be non-Acid Rain units since they have reported to EIA that 
they sell electricity to a utility based on utility ownership or EIA 
form 860b data from 1999 and 2000 and serve a generator greater than 25 
MWe.
    The resulting list of non-Acid Rain units was also checked against 
EPA's National Electric Energy Data System (NEEDS) database. The NEEDS 
database contains a list of electric generating units used to construct 
the ``model'' plants that represent existing and planned/committed 
units in EPA modeling applications of the Integrated Planning Model 
(IPM). The NEEDs check resulted in the addition of a number of non-Acid 
Rain pre-1991 combined cycle combustion turbines at Acid Rain plants.
    EPA also included specific units in the inventory of existing 
potential CAIR units based on objections and supporting data submitted 
to the EPA by the owners or operators of the units involved.
    EPA notes, as discussed above, that inclusion of a unit in, or 
exclusion of a unit from, the inventory of existing potential CAIR 
units (and thus the allocations for 2009-2014) reflects only a 
preliminary application of the applicability provisions of the CAIR 
FIPs and does not constitute a determination of whether the unit is 
subject to a CAIR FIP. The inventory was developed in order to enable 
EPA to calculate allowance allocations for existing units, and the data 
that EPA used in developing the inventory are not complete and have 
certain limitations. In contrast, the applicability on the CAIR FIPs to 
individual units must be determined based on a complete review of all 
relevant data, whether or not all such data were provided at the time 
the inventory was developed, and final application of the applicability 
provisions to that data. In fact, because an inventory developed for 
purposes of allowance allocation may not be entirely consistent with 
final applicability determinations, Sec. Sec.  97.142(e) and 97.342(e) 
establish procedures to be applied when the Administrator determines 
that a unit that has been allocated allowances turns out not to 
actually be a CAIR unit, i.e., not to

[[Page 62243]]

actually be a unit subject to the requirements of a CAIR FIP. For 
example, if this determination is made after the allowance allocation 
is recorded but before deductions for compliance with the allowance-
holding requirement are made under Sec. Sec.  97.154(b) and 97.354(b), 
the Administrator will deduct the allowances and transfer them to a new 
unit set-aside for the appropriate State.
    The public, including owners and operators of units that should 
have been, but were not included in the inventory of existing potential 
CAIR units in the preliminary NODA, was asked to submit objections, in 
response to the August 4, 2006 NODA, informing EPA that the units 
should be added to the inventory and allocated allowances, consistent 
with the applicability criteria in the CAIR FIP (in Sec. Sec.  97.104 
and 97.304). The data necessary for allowance allocations were also to 
be provided.
    Applicability objections received in response to the August 4, 2006 
NODA, and EPA's response concerning whether to add the units or remove 
the units from the inventory of existing potential CAIR units are 
described in the Response to Objections Document and copies of the 
applicability determinations are included in the CAIR FIP docket.
    A unit that is not allocated allowances because of its exclusion 
from the inventory may ultimately be determined to be a CAIR unit. Each 
CAIR unit is subject to the allowance-holding requirements of CAIR 
regardless of whether the unit is allocated any allowances.

B. Annual and Ozone Season Fuel Heat Input Data for Acid Rain Units

    EPA used heat input data reported by units under the Acid Rain 
Program for 2000 through 2004 in order to develop annual and ozone 
season baseline heat input. Fuel-adjusted heat input was calculated 
based on the reported heat input and the primary fuel type (by year) 
that was reported to EPA in the unit's Acid Rain Program monitoring 
plan. For units that reported coal as their primary fuel for the year, 
EPA did not adjust their heat input. For units reporting oil as their 
primary fuel, EPA multiplied their heat input by 0.6. If the primary 
fuel was not coal or oil, the heat input for the year was multiplied by 
0.4.
    For some units, the use of the primary fuel type to identify the 
appropriate CAIR fuel adjustment factor may not yield the same result 
as using the CAIR FIP definition of ``coal-fired'' or ``oil-fired'' to 
identify the appropriate factor. Under the CAIR FIP, a coal-fired unit 
is a unit which burns any amount of coal in a year, and an oil-fired 
unit is a unit which had more than 15% of its yearly heat input from 
oil and burned no coal. The use of primary fuel type will not match the 
CAIR FIP definition in cases where coal was burned in a year, but was 
not listed as the primary fuel, or when more than 15% of a year's heat 
input was from oil, but oil was not listed as the primary fuel. EPA 
used the primary fuel type, as a surrogate for the data necessary to 
apply the terms ``coal-fired'' and ``oil-fired'', because under the 
Acid Rain Program, more detailed fuel use data are reported only for 
units using non-continuous emission monitoring methods. Because of this 
limitation on the data used by EPA, the fuel-adjusted heat input 
calculated for some units may be lower than if the calculation were 
based on more precise data. Owners and operators were asked to provide, 
in response to the August 4, 2006 NODA, any available, more precise 
data on fuel use. Fuel type objections and EPA's response are described 
in the Response to Objections document. EPA accepted the fuel type 
objections to the fuel determinations based on monitoring plan data in 
the preliminary NODA.

C. Annual and Ozone Season Fuel Heat Input Data for Non-Acid Rain Units

    EIA data, as well as Federal Energy Regulatory Commission (FERC) 
form 423 data, were used to calculate annual and ozone season fuel-
adjusted heat input for non-Acid Rain units.\3\
---------------------------------------------------------------------------

    \3\ In some cases, heat input information was not available for 
all or a portion of the baseline period. It was not clear whether 
this was the result of a unit not operating or a unit failing to 
report its operations. A zero value was applied for heat input in 
these cases. This may have resulted in an incorrect baseline heat 
input for the unit involved.
---------------------------------------------------------------------------

    The data sources and calculation methods vary by the type of unit 
and data year. The EIA and FERC databases that were used were 
downloaded in October 2005 and are available on EIA's Web site at 
http://www.eia.doe.gov/cneaf/electricity/page/data.html.

    For the August 4, 2006 NODA inventory, we also replaced the 
calculated ozone season heat input data with data reported to EPA under 
the OTC NOX Budget Program and the NOX SIP Call 
NOX Budget Trading Program, if available. For the final 
inventory, based on objections received, we also replaced the 
calculated annual values with data reported to EPA for a full twelve 
months under the OTC NOX Budget Program and the 
NOX SIP Call NOX Budget Trading Program.\4\ The 
reported heat input was used in conjunction with information regarding 
the primary fuel for the year (reported in the monitoring plan) to 
calculate the fuel-adjusted heat input.
---------------------------------------------------------------------------

    \4\ Initially EPA did not use data reported under the 
NOX Budget programs for non-Acid Rain units. Some units 
only report ozone season quarters, and therefore the heat input for 
these reflect less than a full year's operation.
---------------------------------------------------------------------------

    In addition, EPA also utilized information provided as part of the 
CAIR rulemaking process. More specifically, EPA used annual heat input 
data submitted in response to EPA's Supplemental CAIR Proposal 
published in the Federal Register on June 10, 2004.
Boilers
    For 2000, fuel-adjusted annual and ozone season heat input were 
calculated for each utility boiler based on EIA form 767 monthly fuel 
use and heat content data. The fuel-adjusted 2000 annual heat input was 
calculated at the plant level for non-utility boilers based on EIA form 
860b data. The fuel usage and heat content information in EIA form 860b 
is reported at the plant level, so the fuel-adjusted heat input was 
first calculated for the plant and then apportioned equally to each 
boiler (at the plant) that is a potential CAIR unit. The ozone season 
heat input for non-utility boilers was based on multiplying the annual 
heat input by the fraction of the five ozone-season months to 12 annual 
months (\5/12\).\5\
---------------------------------------------------------------------------

    \5\ Plants that were sold in 2000 and changed status from 
utility to non-utility sometimes reported using both the utility and 
non-utility forms for that year. To avoid double counting of heat 
input in these cases, EPA used only the data from utility form or 
the data from the non-utility form for the plant, whichever set of 
data resulted in the higher heat input for the plant.
---------------------------------------------------------------------------

    Beginning in 2001, both utility and non-utility boilers reported 
using EIA form 767, so fuel-adjusted heat input was calculated for each 
boiler based on monthly fuel usage and heat content data from that EIA 
form for the 2001 through 2004 period.
    Although data for 2000 was developed as described above, EPA 
decided not to use the 2000 data in certain cases, i.e., where a plant 
included both existing potential CAIR units and existing units that are 
not treated as potential CAIR units. Since in those cases the 2000 unit 
level heat input could not be determined for existing potential CAIR 
units alone without attributing to them heat input that actually may be 
for units that are not potential CAIR units and this additional heat 
input could be significant, EPA decided, in those cases, to exclude the 
2000 heat input data and use the average of the three highest annual 
heat input values during 2001

[[Page 62244]]

through 2004 in calculating NOX allowance allocations. In 
any case where the use of unit level data (for 2000 or for any other 
relevant period) will affect the calculation of the baseline heat input 
of a unit, the owners and operators of the unit were given the 
opportunity to provide EPA, in response to the preliminary NODA, the 
unit level data.
Simple Combustion Turbines and Combined Cycle Units at Non-Acid Rain 
Plants
    The following procedures were used for simple combustion turbines 
and combined cycle units at non-Acid Rain plants, which include certain 
utility and non-utility plants.\6\ For 2000, data from the EIA form 
860b was used to calculate simple combustion turbine and combined cycle 
unit fuel-adjusted heat input for the non-utility plants in a similar 
manner as the 2000 non-utility boiler calculation. Annual fuel-adjusted 
heat input was calculated at the plant level. Data from the EIA form 
759 and FERC form 423 were used to calculate simple combustion turbine 
and combined cycle heat input for the utility plants. The EIA form 759 
provided monthly fuel usage at the prime mover level (simple combustion 
turbine, combined cycle combustion turbine, and combined cycle steam 
turbine), and the FERC form 423 provided gaseous and liquid fuel heat 
content for the plants. The prime mover fuel-adjusted heat input for 
the plant was apportioned equally to each potential CAIR unit at the 
plant by prime mover type (with combined cycle combustion turbine and 
steam turbine heat inputs combined to provide a single combined cycle 
heat input). To the extent the plant includes both potential CAIR units 
and units that are not treated as potential CAIR units, this approach 
may have resulted in calculated heat input values exceeding the actual 
heat input for the potential CAIR units. Unlike the boiler data, that 
required apportioning plant level data only for 2000, combustion 
turbine EIA data are only available at the plant level for all of the 
years. Therefore the approach taken for boilers, i.e., exclusion of a 
year of plant level data when that data may be impacted by units not 
subject to CAIR, was not available. In any case where the use of unit 
level data (for 2000 or for any other relevant period) will affect 
calculation of the baseline heat input of a unit, the owners and 
operators were given the opportunity to provide to the EPA, in response 
to the preliminary NODA in 2006, the unit level data. Ozone-season heat 
input was calculated based on the \5/12\ fraction of ozone-season 
months to annual months.
---------------------------------------------------------------------------

    \6\ See note 2.
---------------------------------------------------------------------------

    In 2001 the EIA form 759 was renamed as form 906, with separate 
similar versions for non-utility and utility plant prime mover level 
fuel usage. Data for the non-utility and utility plants from these 
forms were combined with the FERC form 423 heat content data to 
calculate prime mover level fuel-adjusted heat input. This prime mover 
level annual and ozone season heat input was then apportioned equally 
to each simple combustion turbine or combined cycle turbine (at the 
plant) that is a potential CAIR unit by prime mover type as described 
earlier for the 2000 utility units.
    EIA combined the utility and non-utility reporting forms in 2002 
and changed the format. The EIA form 906 for 2002 through 2004 provided 
both fuel usage and fuel heat input on a monthly basis. The annual and 
ozone season fuel-adjusted heat input was totaled for each of the non-
utility and utility plants at the prime mover level and then 
apportioned equally to each potential CAIR unit at the plant, as 
described above for the 2000 and 2001 EIA form 759 and 906 data.
Non-Acid Rain Simple Combustion Turbines at Acid Rain Plants
    The fuel-adjusted heat inputs for non-Acid Rain simple combustion 
turbines located at Acid Rain plants with no Acid Rain combustion 
turbines were calculated and apportioned in a similar manner as 
described above for simple combustion turbines and combined cycle units 
at non-Acid Rain plants.
    Heat inputs, however, for non-Acid Rain combustion turbines located 
at plants with Acid Rain combustion turbines had to be calculated in a 
different manner in order to not double count heat input. At these 
plants the plant or prime mover level heat input, calculated with EIA 
data as described above, included heat input from both the non-Acid 
Rain and Acid Rain turbines. Since the baseline heat input for the Acid 
Rain turbines at the plant was taken from data reported to EPA under 
the Acid Rain Program, the Acid Rain data was subtracted from the total 
EIA-based combustion turbine and combined cycle heat input. The 
remaining fuel-adjusted heat input was then apportioned equally to each 
of the non-Acid Rain turbines. In some cases the difference between EIA 
and Acid Rain heat input was zero or even negative resulting in zero 
heat input for the non-Acid Rain units.
    Heat input and fuel type objections received in response to the 
August 4, 2006 NODA, and EPA's response concerning whether to modify 
the baseline heat input, are described in the Response to Objections 
Document. EPA accepted objections that provided unit level data for 
units for which EPA has relied on plant level EIA data. EPA also 
accepted objections for units for which EPA had used unit level EIA 
data, if the objector identified that it had notified EIA of data 
issues. EPA also accepted heat input objections if the source provided 
an objection with new heat input data and an explanation of why the 
newly submitted data constituted best available data. Also some 
objectors had pointed out an error in EPA's calculation of 2002 through 
2004 ozone season boiler heat input that were based on EIA form 767 
data. EPA corrected the calculation error and has revised the EIA based 
ozone season heat input for those years.

5. How Do I Interpret the Data Tables Presented Through This NODA?

    This section provides a brief description of the types of data 
included in each table of this NODA. A more detailed description of the 
data tables may be found in the TSD titled ``Data Field Description for 
the Final CAIR FIP NOX Annual and NOX Ozone-
season Allocation Tables'', which is available in the docket and on the 
Web site mentioned in Section 8. The CAIR Annual and Ozone Season 
NOX Allocation tables were created primarily using data 
reported to EPA (under the Acid Rain Program) and the EIA. For a number 
of units, annual and ozone season allocations were based on heat input 
and fuel information provided in response to the August 4, 2006 NODA. 
In addition, for a small number of non-Acid Rain units, annual 
allocations incorporated heat input information provided by the source 
owner or operator in response to EPA's June 10, 2004 Supplemental CAIR 
Proposal.
    Tables 1 and 2 contain the annual and ozone season unit 
NOX allowance allocations and the baseline heat input. 
Tables 3, 4, 5, and 6 contain the EIA, EPA, and objector data regarding 
heat input and primary fuel used to calculate the annual allocations. 
Tables 7, 8, and 9 contain additional EIA, EPA, and objector data used 
to calculate ozone season allocations.
    Some units (i.e., units not reporting under the Acid Rain Program, 
OTC NOX Budget Program, or NOX SIP Call 
NOX Budget Trading Program during a portion of the baseline 
period) use heat input data available from both EIA and EPA to compile 
the baseline heat input. For these units the EIA annual heat input data 
are used until the first full

[[Page 62245]]

year of Acid Rain Program or NOX Budget Program data are 
available. Ozone season heat inputs used for the ozone season 
allocation are from the data reported under the Acid Rain Program, OTC 
NOX Budget Program, and NOX SIP Call 
NOX Budget Trading Program, if available, in Table 8. 
Otherwise EIA data in Table 7 or source-provided data in Table 9 were 
used.

6. Is the EPA Requesting Objections to These Data?

    EPA is not requesting objections to the data in the data tables in 
this NODA. This action constitutes a final action for determining the 
CAIR FIP NOX allowance allocations for existing units for 
2009-2014.

7. What Data Is the EPA Making Available?

    EPA has used the best data currently available to develop an 
inventory of existing units that currently are potentially covered by 
the CAIR FIPs and to calculate each existing unit's allowance 
allocations for 2009 through 2014. Through the NODA, EPA is making 
available to the public, including unit owners and operators, the data 
used in developing the inventory of potential existing CAIR units, the 
heat input and fuel type data and resulting baseline heat inputs used 
in the allocation calculations, and the allocations resulting from such 
calculations.
    As discussed above, the inventory of existing potential CAIR units, 
and the data on which the inventory is based, are final for purposes of 
determining what units should be allocated allowances in this NODA and 
are not final for purposes of future NODAs concerning future 
allocations and for purposes of determining whether a unit is subject 
to the requirements of the CAIR FIPs.\7\ Further, the heat input and 
fuel type data and resulting baseline heat inputs used in this NODA are 
final for purposes of determining CAIR NOX FIP allowances 
for 2009-2014. EPA intends to use, for the units in the inventory in 
this NODA, these data (including the baseline heat inputs) in 
calculating allocations in future NODA addressing future years. These 
data include: EPA heat input and fuel type data under the Acid Rain 
Program for the years 2000 through 2004, under the NOX 
Budget Program (NBP) for 2000 through 2002 for Ozone Transport 
Commission (OTC) units, and under the NOX Budget Trading 
Program for 2003 and 2004 for units under the NOX SIP Call; 
and heat input and fuel data obtained in EIA databases for units that 
are not under these programs. The 2009-2014 allocations in the NODA, 
calculated using these data, are also final.
---------------------------------------------------------------------------

    \7\ See note 1.
---------------------------------------------------------------------------

    In particular, this action makes available to the public: 
NOX annual and NOX ozone season allocations for 
individual units in CAIR States for the FIP; the adjusted heat input 
values for each unit for 2000 through 2004; the baseline heat inputs 
used to calculate the allocations; the other data used to include units 
in, or exclude units from, the inventory of existing potential CAIR 
units for which allocations are calculated; and objector data received 
during the objection period that were used in the final inventory and 
allowance determinations for units.
    In particular, EPA is making the following data available:
     EIA Annual Heat Input: EIA data were used to obtain heat 
input and fuel type data for those units that are subject to the CAIR 
rule, but are not reporting annually under the Acid Rain Program, OTC 
NOX Budget Program, or the NOX SIP Call 
NOX Budget Trading Program.
     EIA Ozone Season Heat Input.
     EPA Acid Rain Program Annual Heat Input.
     EPA Acid Rain Program, OTC NOX Budget Program, 
and NOX SIP Call NOX Budget Trading Program Ozone 
Season Heat Input.
     Unit NOX Annual Allowance Allocation Table.
     Unit NOX Ozone Season Allocation Table.
     Objector data that were used in inventory and the final 
allocations.

8. Where Can I Get the Data Discussed in This NODA?

    Tables 1 through 9, which include the allowance allocations, 
baseline heat input, adjusted heat input, and fuel type data, are 
available in an Excel file titled ``Final Data for EGU NOX 
Annual and NOX Ozone Season Allocations for the Clean Air 
Interstate Rule Federal Implementation Plan Trading Programs (2009 
through 2014 allowance allocations) on the CAMD Web site at http://www.epa.gov/airmarkets/cair/NODA.
 The ``NODA'' link will open a Web 

page which contains this excel file, along with the NODA, Technical 
Support Document, Response to Objections Document, and copies of the 
applicability determinations made in connection with this NODA in PDF 
format. The NODA is titled ``Final Notice of Data Availability for EGU 
NOX Annual and NOX Ozone Season Allocations for 
the Clean Air Interstate Rule Federal Implementation Plan Trading 
Program (2009 through 2014 allowance allocations).'' The TSD is titled 
``Data Field Description for the CAIR FIP NOX Annual and 
NOX Ozone Season Allocation Tables (2009 through 2014 
allowance allocations).'' The Response to Objections document is titled 
``Response to the Objections for the Notice of Data Availability 
(NODA), Proposed Allocation of NOX Allowances under the 
Clean Air Interstate Rule (CAIR) Federal Implementation Plan (FIP).'' 
In addition, these files are in the CAIR FIP Docket (Docket ID no. EPA-
HQ-OAR-2004-0076).
    Other data used in developing the inventory of potential existing 
CAIR units can be found on the EIA Web site through the link given in 
section 4 of this NODA.

    Dated October 25, 2007.
Brian McLean,
Director, Office of Atmospheric Programs.
[FR Doc. E7-21603 Filed 11-1-07; 8:45 am]

BILLING CODE 6560-50-P