Document ID: EPA-R04-OAR-2020-0129-0001
Agency: epa
Document Type: Proposed Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Alabama: NOX SIP Call and Removal of CAIR
Posted Date: 2021-03-03T05:00Z

[Federal Register Volume 86, Number 40 (Wednesday, March 3, 2021)]
[Proposed Rules]
[Pages 12305-12309]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04324]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R04-OAR-2020-0129; FRL-10020-85-Region 4]

Air Plan Approval; AL; NOX SIP Call and Removal of CAIR

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a State Implementation Plan (SIP) revision submitted by the 
State of Alabama through a letter dated February 27, 2020, to add 
regulations maintaining compliance with the State's Nitrogen Oxide 
(NOX) SIP Call obligations for large non-electricity 
generating units (non-EGUs), to repeal the State's previously sunsetted 
NOX Budget Trading Program regulations, and to repeal the 
State's Clean Air Interstate Rule (CAIR) regulations. EPA is also 
proposing to conditionally approve into the SIP state regulations that 
establish monitoring and reporting requirements for units subject to 
the NOX SIP Call, including alternative monitoring options 
for certain sources for NOX SIP Call purposes. In addition, 
EPA is proposing to make ministerial changes to reflect the State's 
renumbering of an existing regulation for ``New Combustion Sources.''

DATES: Comments must be received on or before April 2, 2021.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R04-
OAR-2020-0129 at www.regulations.gov. Follow the online instructions 
for submitting comments. Once submitted, comments cannot be edited or 
removed from Regulations.gov. EPA may publish any comment received to 
its public docket. Do not submit electronically any information you 
consider to be Confidential Business Information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e., on the web, cloud, or other file sharing 
system). For additional submission methods, the full EPA public comment 
policy, information about CBI or multimedia submissions, and general 
guidance on making effective comments, please visit www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Steven Scofield, Air Regulatory 
Management Section, Air Planning and Implementation Branch, Air and 
Radiation Division, U.S. Environmental Protection Agency, Region 4, 61 
Forsyth Street SW, Atlanta, Georgia 30303-8960. The telephone number is 
(404) 562-9034. Mr. Scofield can also be reached via electronic mail at 
scofield.steve@epa.gov.

SUPPLEMENTARY INFORMATION: 

I. Background

    Under Clean Air Act (CAA or Act) section 110(a)(2)(D)(i)(I), also 
called the good neighbor provision, states are required to address the 
interstate transport of air pollution. Specifically, the good neighbor 
provision requires that each state's implementation plan contain 
adequate provisions to prohibit air pollutant emissions from within the 
state that will significantly contribute to nonattainment of the 
national ambient air quality standards (NAAQS), or that will interfere 
with maintenance of the NAAQS, in any other state.
    In October 1998 (63 FR 57356), EPA finalized the ``Finding of 
Significant Contribution and Rulemaking for Certain States in the Ozone 
Transport Assessment Group Region for Purposes of Reducing Regional 
Transport of Ozone'' (NOX SIP Call). The NOX SIP 
Call required eastern states, including Alabama, to submit SIPs that 
prohibit excessive emissions of ozone season NOX by 
implementing statewide emissions budgets.\1\ 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.\2\ 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 the following 
sources to participate in a regional cap and trade program: Generally 
EGUs with capacity greater than 25 megawatts (MW); and large industrial 
non-EGUs, such as boilers and combustion turbines, with a rated heat 
input greater than 250 million British thermal units per hour (MMBtu/
hr). The NOX SIP Call also identified potential reductions 
from cement kilns and stationary internal combustion engines.
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    \1\ See 63 FR 57356 (October 27, 1998).
    \2\ As originally promulgated, the NOX SIP Call also 
addressed good neighbor obligations under the 1997 8-hour ozone 
NAAQS, but EPA subsequently stayed and later rescinded the rule's 
provisions with respect to that standard. See 65 FR 56245 (September 
18, 2000); 84 FR 8422 (March 8, 2019).
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    To comply with the NOX SIP Call requirements, in 2001, 
the Alabama Department of Environmental Management (ADEM) submitted a 
revision to add new rule sections to the SIP-approved version of 
Alabama Administrative Code Chapter 335-3-1, General Provisions, and 
Chapter 335-3-8, Control of Nitrogen Oxides Emissions. EPA approved the 
revision as compliant with Phase I of the NOX SIP Call in 
2001. See 66 FR 36919 (July 16, 2001). The approved revision required 
EGUs and large non-EGUs in the State to participate in the 
NOX Budget Trading Program beginning in 2004. In 2005, 
Alabama submitted, and EPA approved, a SIP revision to address 
additional emissions reductions required for the NOX SIP 
Call under Phase II. See 70 FR 76694 (Dec. 28, 2005).
    In 2005, EPA published CAIR, which required several eastern states, 
including Alabama, to submit SIPs that prohibited emissions consistent 
with revised ozone season (and annual) NOX budgets. See 70 
FR 25162 (May 12, 2005); see also 71 FR 25328 (April 28, 2006). CAIR 
addressed the good neighbor provision for the 1997 ozone NAAQS and 1997 
fine particulate matter (PM2.5) NAAQS and was designed to 
mitigate the impact of transported NOX emissions with 
respect to ozone and PM2.5. CAIR established several trading 
programs that EPA implemented through federal implementation plans 
(FIPs) for EGUs greater than 25 MW in each affected state, but not 
large non-EGUs; states could submit SIPs to replace the FIPs that 
achieved the required emission reductions from EGUs and/or other types 
of sources.\3\ When the CAIR trading program for ozone season 
NOX was implemented beginning in 2009, EPA discontinued 
administration of the NOX Budget Trading Program; however, 
the requirements of the NOX SIP Call continued to apply.
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    \3\ CAIR had separate trading programs for annual sulfur dioxide 
emissions, seasonal NOX emissions, and annual 
NOX emissions.
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    On October 1, 2007 (72 FR 55659), EPA approved revisions to 
Alabama's SIP that incorporated requirements for CAIR. Consistent with 
CAIR's

[[Page 12306]]

requirements, EPA approved a SIP revision in which Alabama regulations: 
(1) Sunset its NOX Budget Trading Program requirements, and 
(2) incorporated CAIR annual and ozone season NOX state 
trading programs. See 72 FR 55659. Participation of EGUs in the CAIR 
ozone season NOX trading program addressed the State's 
obligation under the NOX SIP Call for those units, and 
Alabama also chose to require non-EGUs subject to the NOX 
SIP Call to participate in the same CAIR trading program. In this 
manner, Alabama's CAIR rules incorporated into the SIP addressed the 
State's obligations under the NOX SIP Call with respect to 
both EGUs and non-EGUs.
    The United States Court of Appeals for the District of Columbia 
Circuit (D.C. Circuit) initially vacated CAIR in 2008, but ultimately 
remanded the rule to EPA without vacatur to preserve the environmental 
benefits provided by CAIR. See North Carolina v. EPA, 531 F.3d 896, 
modified on rehearing, 550 F.3d 1176 (D.C. Cir. 2008). The ruling 
allowed CAIR to remain in effect temporarily until a replacement rule 
consistent with the court's opinion was developed. While EPA worked on 
developing a replacement rule, the CAIR program continued to be 
implemented with the NOX annual and ozone season trading 
programs beginning in 2009 and the SO2 annual trading 
program beginning in 2010.
    Following the D.C. Circuit's remand of CAIR, EPA promulgated the 
Cross-State Air Pollution Rule (CSAPR) to replace CAIR and address good 
neighbor obligations for the 1997 ozone NAAQS, the 1997 
PM2.5 NAAQS, and the 2006 PM2.5 NAAQS. See 76 FR 
48208 (August 8, 2011). Through FIPs, CSAPR required EGUs in eastern 
states, including Alabama, to meet annual and ozone season 
NOX emission budgets and annual SO2 emission 
budgets implemented through new trading programs. Implementation of 
CSAPR began on January 1, 2015.\4\ 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. 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 also stopped administering CAIR trading programs with 
respect to emissions occurring after December 31, 2014.\5\
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    \4\ See 79 FR 71663 (December 3, 2014).
    \5\ See 79 FR 71663 (December 3, 2014) and 81 FR 13275 (March 
14, 2016).
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    To comply with CSAPR, Alabama adopted SO2 and 
NOX CSAPR trading program rules, including budgets, in ADEM 
Administrative Code Chapters 335-3-5 and 335-3-8. On August 31, 2016, 
EPA approved Alabama's CSAPR annual SO2 and annual 
NOX trading program rules into the SIP.\6\ See 81 FR 59869. 
Because EPA stopped administering the CAIR trading programs after 2014, 
the approved CAIR rules in the State's SIP have not been implemented 
for several years. Furthermore, ADEM repealed all CAIR and CAIR-related 
regulations from Alabama Administrative Code Chapters 335-3-1, 335-3-5, 
and 335-3-8 on December 9, 2011.\7\ Even though the CAIR programs were 
not being implemented in Alabama, ozone season NOX emissions 
have remained well below the NOX SIP Call budget levels.
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    \6\ In the 2016 action, EPA did not act on the portion of 
Alabama's SIP submittal intended to replace Alabama units' 
obligations to participate in CSAPR's federal trading program for 
ozone-season NOX emissions.
    \7\ Although CAIR-related regulations were repealed from ADEM 
Administrative Code on December 11, 2011, the repeal of the 
regulations was not effective until February 20, 2015. EPA is now 
proposing to remove the repealed regulations from the SIP.
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    After litigation that reached the Supreme Court, the D.C. Circuit 
generally upheld CSAPR but remanded several state budgets to EPA for 
reconsideration. EME Homer City Generation, L.P. v. EPA, 795 F.3d 118, 
129-30 (D.C. Cir. 2015). EPA addressed the remanded ozone season 
NOX budgets in the Cross-State Air Pollution Rule Update for 
the 2008 Ozone NAAQS (CSAPR Update), which also partially addressed 
eastern states' good neighbor obligations for the 2008 ozone NAAQS. See 
81 FR 74504 (October 26, 2016). The air quality modeling for the CSAPR 
Update demonstrated that Alabama contributes significantly to 
nonattainment and/or interferes with maintenance of the 2008 ozone 
NAAQS in other states. The CSAPR Update reestablished an option for 
most states to meet their ongoing obligations for non-EGUs under the 
NOX SIP Call by including the units in the CSAPR Update 
trading program.
    The CSAPR Update trading program replaced the original CSAPR 
trading program for ozone season NOX for most covered 
states. On October 6, 2017, EPA approved Alabama's CSAPR Update ozone 
season NOX trading program rules for EGUs into the State's 
SIP.\8\ See 82 FR 46674. Alabama's EGUs participate in the CSAPR Update 
trading program, generally also addressing the state's obligations 
under the NOX SIP Call for EGUs. However, Alabama elected 
not to include its large non-EGUs in the CSAPR Update ozone season 
trading program. Because Alabama's large non-EGUs no longer participate 
in any CSAPR or CSAPR Update trading program for ozone season 
NOX emissions, the NOX SIP Call regulations at 40 
CFR 51.121(r)(2) as well as anti-backsliding provisions at 40 CFR 
51.905(f) and 40 CFR 51.1105(e) require these non-EGUs to maintain 
compliance with NOX SIP Call requirements in some other way.
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    \8\ This action approved CSAPR and CSAPR Update-related 
provisions of Alabama SIP submissions dated October 26, 2015, and 
May 19, 2017.
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    Under 40 CFR 51.121(f)(2) of the NOX SIP Call 
regulations, where a State's SIP contains control measures for EGUs and 
large non-EGU boilers and combustion turbines, the SIP must contain 
enforceable limits on the ozone season NOX mass emissions 
from these sources. In addition, under 40 CFR 51.121(i)(4) of the 
NOX SIP Call regulations as originally promulgated, the SIP 
also had to require these sources to monitor emissions according to the 
provisions of 40 CFR part 75, which generally entails the use of 
continuous emission monitoring systems (CEMS). Alabama triggered these 
requirements by including control measures in its SIP for these types 
of sources, and the requirements have remained in effect despite the 
discontinuation of the NOX Budget Trading Program after the 
2008 ozone season. On March 8, 2019, EPA revised some of the 
regulations that were originally promulgated in 1998 to implement the 
NOX SIP Call.\9\ The revision gave states covered by the 
NOX SIP Call greater flexibility concerning the form of the 
NOX emissions monitoring requirements that the states must 
include in their SIPs for certain emissions sources. The revision 
amended 40 CFR 51.121(i)(4) to make Part 75 monitoring, recordkeeping, 
and reporting optional, such that SIPs may establish alternative 
monitoring requirements for NOX SIP Call budget units that 
meet the general requirements of 40 CFR 51.121(f)(1) and (i)(1). Under 
the updated provision, a state's implementation plan still needs to 
include some form of emissions monitoring requirements for these types 
of sources, consistent with the NOX SIP

[[Page 12307]]

Call's general enforceability and monitoring requirements at Sec. Sec.  
51.121(f)(1) and (i)(1), respectively, but states are no longer be 
required to satisfy these general NOX SIP Call requirements 
specifically through the adoption of 40 CFR part 75 monitoring 
requirements.
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    \9\ See ``Emissions Monitoring Provisions in State 
Implementation Plans Required Under the NOX SIP Call,'' 
84 FR 8422 (March 8, 2019).
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    After evaluating the various options available following EPA's 
March 8, 2019, revision to the NOX SIP Call requirements, 
ADEM revised its regulations to address NOX SIP Call 
requirements and adopt alternative monitoring options for certain large 
non-EGUs. The changes require large non-EGUs in the State to address 
the NOX SIP Call's requirements for enforceable limits on 
ozone season NOX mass emissions in a manner that does not 
rely on the administration of an interstate trading program. In 
addition, Alabama had previously revised its regulations to remove 
NOX Budget Trading Program and CAIR trading program 
provisions after EPA stopped administering those programs. The February 
27, 2020 SIP revision submitted by ADEM requests approval into the SIP 
of all of these rule changes. The contents of the submittal and EPA's 
analysis is further discussed in Section III.

II. Why is EPA proposing these actions?

    ADEM's February 27, 2020, letter \10\ requests that EPA approve 
into the SIP changes to ADEM Administrative Code Chapter 335-3-8 to 
include Rule 335-3-8-.71, ``NOX Budget Program,'' and Rule 
335-3-8-.72, ``NOX Budget Program Monitoring and 
Reporting,'' to maintain state compliance with the federal 
NOX SIP Call regulations at 40 CFR 51.121 and 51.122, and to 
provide alternative monitoring options for certain large non-EGUs. 
Additionally, Alabama requests that EPA approve the removal from the 
SIP of the State's repealed CAIR trading program and NOX 
Budget Trading Program rules, as those state regulations have been 
replaced by CSAPR for EGUs and by the State's new rules for non-EGUs. 
ADEM also requests that EPA approve the State's renumbering of the 
existing regulation titled ``New Combustion Sources'' from Rule 335-3-
8-.14 to Rule 335-3-8-.05. The submission includes a demonstration 
under CAA section 110(l) intended to show that the revision does not 
interfere with any applicable CAA requirements. As discussed later, EPA 
has reviewed these changes, preliminarily finds them consistent with 
the CAA and regulations governing the NOX SIP Call, with one 
exception, and is proposing to approve the revisions to incorporate the 
NOX SIP Call regulations into the State's implementation 
plan and to remove the NOX Budget Trading Program and CAIR 
trading program regulations from the SIP. The exception is that EPA is 
proposing to conditionally approve the regulations that establish 
monitoring and reporting requirements for NOX budget units.
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    \10\ On February 27, 2020, Alabama also submitted other SIP 
revisions which will be addressed in separate actions. This 
submission also includes amended regulations which are not part of 
the federally-approved SIP and are therefore not addressed in this 
notice.
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III. Analysis of Alabama's Submission

    As discussed above, ADEM has revised its regulations to require 
non-EGUs to maintain compliance with NOX SIP Call 
requirements without participation in an interstate trading program. 
ADEM updated Chapter 335-3-8, ``Control of Nitrogen Oxides Emissions'' 
by revising Chapter 335-3-8 to add Rule 335-3-8-.71, ``NOX 
Budget Program'' and Rule 335-3-8-.72, ``NOX Budget Program 
Monitoring and Reporting,'' to maintain state compliance with the 
federal NOX SIP Call regulations at 40 CFR 51.121 and 51.122 
for large non-EGUs and to adopt an alternative monitoring option for 
certain large non-EGUs. EPA previously approved Alabama's sunsetting of 
the State's NOX Budget Trading Program regulations when that 
program was replaced by the CAIR trading program for ozone season 
NOX. The State subsequently repealed its NOX 
Budget Trading Program regulations from Alabama Administrative Code 
Chapters 335-3-1 and 335-3-8 and now requests removal of those 
regulations from the SIP. Also, because EPA has stopped administering 
the CAIR trading programs, the State repealed all CAIR and CAIR-related 
regulations from Alabama Administrative Code Chapters 335-3-1, 335-3-5, 
and 335-3-8 and now requests removal of these regulations from the SIP 
as well.\11\ Lastly, ADEM requests that EPA approve a ministerial 
change that would update the SIP to reflect the State's renumbering of 
the existing regulation titled, ``New Combustion Sources'' from Rule 
335-3-8-.14 to Rule 335-3-8-.05.
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    \11\ EPA is proposing to approve removal of the following rules 
related to the NOX Budget Trading Program and CAIR from 
Alabama's SIP: 335-3-1-.14, 335-3-1-.16, 335-3-5-.06 through 335-3-
5-.08, 335-3-5-.11 through .14, 335-3-8-.05 through 335-3-8-.13, 
335-3-8-.16 through 335-3-8-.18, 335-3-8-.20, 335-3-8-.21, 335-3-
8-.23 through 335-3-8-.27, 335-3-8-.29, 335-3-8-.30, 335-3-8-.32, 
and 335-3-8-.33. Other Alabama rules that share many of the same 
rule numbers would not be removed from the SIP; these rules relate 
to the State's CSAPR and CSAPR Update trading programs.
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1. Revised State Regulations

    ADEM added Rule 335-3-8-.71, ``NOX Budget Program,'' to 
establish a state control program for sources that are subject to the 
NOX SIP Call, but not covered under the CSAPR Update trading 
program. ADEM Rule 335-3-8-.71 is designed to ensure that the State's 
large non-EGUs will continue to satisfy NOX SIP Call 
requirements for enforceable limits on ozone season NOX mass 
emissions.
    ADEM Rule 335-3-8-.71(4) and (5) contain the rule's applicability 
provisions, generally covering all existing and new non-EGUs (including 
cogeneration units) that would have been subject to the NOx Budget 
Trading Program and that are not subject to the CSAPR Update trading 
program. ADEM Rule 335-3-8-.71(6)(a) defines the budget for the State 
at 2,328 tons per ozone season, which is the portion of the State's 
trading budget under the NOx Budget Trading Program assigned to non-
EGUs, and restricts the collective emissions from the State's affected 
large non-EGUs from exceeding the budget during each control period. 
ADEM Rule 335-3-8-.71(6)(a) also states that Alabama will conduct an 
annual review of the actual NOx emissions to ensure that the state 
budget has not been exceeded. Further, in the event of an exceedance, 
Alabama will submit a revised SIP to EPA which compensates for any 
potential budget shortfall and ensures the state program budget is met 
in all future years. ADEM Rule 335-3-8-.71(6)(b) requires monitoring 
and reporting of NOx emissions from covered units according to the 
methods specified in ADEM Rule 335-3-8-.72. Other provisions of ADEM 
Rule 335-3-8-.71 address definitions, recordkeeping requirements, and 
liability.
    ADEM Rule 335-3-8-.72, ``NOx Budget Program Monitoring and 
Reporting,'' requires all owners and operators of covered NOx budget 
units to implement a monitoring and reporting system necessary to 
attribute ozone season NOx mass emissions to each individual NOx budget 
unit at the source and provide a compliance certification report 
following each ozone season. ADEM Rule 335-3-8-.72(1) requires units to 
monitor and report ozone season NOx mass emissions determined under one 
of the following alternatives: (1) 40 CFR part 75; (2) NOx CEMS, with a 
requirement to convert the NOx concentration or NOx emission rate 
derived from the CEMS to mass emissions; or (3) the use of approved 
emissions factors, with a requirement to

[[Page 12308]]

convert the emission factors to mass emissions. ADEM Rule 335-3-
8-.72(1)(a) requires units to monitor and report under Part 75 if 
required by any other regulation or permit, and allows any other unit 
to choose to report under Part 75. ADEM Rules 335-3-8-.72(1)(b) and 
335-3-8-.72(1)(c) together provide the requirements for units that are 
required to, or choose to, operate a CEMS outside of Part 75 
requirements. ADEM Rule 335-3-8-.72(1)(c) requires NOx budget units 
operating a CEMS to comply with any applicable monitoring and reporting 
regulations, and outlines the methods by which a NOx budget unit shall 
calculate the NOx mass emissions (in tons) for compliance under the NOx 
Budget Program. ADEM Rule 335-3-8-.72(1)(b) outlines additional quality 
assurance and compliance requirements for NOx budget units that choose 
to operate a CEMS. Last, ADEM Rule 335-3-8-.72(1)(d) provides that any 
unit not covered under ADEM Rule 335-3-8-.72(1)(a), (b), or (c), must 
calculate NOx mass emissions through the use of emissions factors. In 
addition, ADEM Rule 335-3-8-.72(1)(e) requires units to submit a 
monitoring protocol to ADEM for review and approval. For all compliance 
options, ADEM Rule 335-3-8-.72(2) requires units to submit their ozone 
season NOx emissions to ADEM as part of an annual compliance report and 
certification no later than November 30th following each ozone season.
    As discussed above, in order to address the requirements of the NOx 
SIP Call for sources that are not covered under a CSAPR trading program 
for ozone season NOx emissions, SIP revisions must provide for 
enforceable emissions limitations and require emissions monitoring 
consistent with the NOx SIP Call's general enforceability and 
monitoring requirements.\12\ In this notice, EPA is proposing to find 
that ADEM Rule 335-3-8-.71 meets the requirement under 40 CFR 
51.121(f)(2) for enforceable limits on the subject units' collective 
emissions of ozone season NOx mass emissions. Thus, EPA is proposing to 
approve ADEM rule 335-3-8-.71 into the SIP.
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    \12\ See 40 CFR 51.121(f)(2)(ii) and 51.121(i)(4).
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    Further, EPA is proposing to find that ADEM Rule 335-3-8-.72 meets 
the State's ongoing obligations under the NOx SIP Call with respect to 
monitoring to ensure compliance with required limitations, with the 
following exception. While ADEM Rule 335-3-8-.72 generally addresses 
the State's ongoing obligations under the NOx SIP Call with respect to 
monitoring, EPA identified one issue impacting monitoring under ADEM's 
rule. Accordingly, on September 15, 2020, ADEM sent a letter \13\ 
requesting that EPA conditionally approve ADEM Rule 335-3-8-.72 under 
CAA section 110(k)(4), as ADEM inadvertently added stack testing 
requirements for units choosing to operate a CEMS outside of Part 75 
requirements rather than for units using emissions factors, as 
intended. In that letter, ADEM also commits to EPA that it will make a 
final submission to EPA within twelve (12) months of the grant of 
conditional approval of the February 27, 2020 submittal to correct this 
stack testing issue. Based on the State's commitment to submit a SIP 
revision addressing the identified deficiency, EPA is proposing to 
conditionally approve the February 27, 2020 submission, as clarified by 
the State's September 15, 2020 letter. If Alabama meets its commitment 
to submit a SIP revision addressing the deficiency by 12 months from 
the date of final approval of this action, ADEM Rule 335-3-8-.72 will 
remain a part of the SIP until EPA takes final action approving or 
disapproving the new SIP revision. However, if the State fails to 
submit this revision on or before 12 months from the date of final 
approval of this action, the conditional approval will become a 
disapproval and EPA will issue a notice to that effect. If the 
conditional approval becomes a disapproval, the disapproval triggers 
the requirement for EPA to issue a federal implementation plan (FIP) 
under CAA section 110(c) to correct the deficiency.
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    \13\ See ADEM's September 15, 2020, letter from Lance R. 
LeFleur, Director, to Mary S. Walker, Regional Administrator, US EPA 
Region 4, available in the docket for this proposed action.
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2. Removal of NOX Budget Trading Program and CAIR Trading 
Program Regulations From Alabama's SIP

    EPA proposes to approve the removal from the SIP of the State's 
repealed NOX Budget Trading Program and CAIR trading program 
regulations. With respect to the State's NOX Budget Trading 
Program regulations, removal from the SIP would have no substantive 
effect because EPA previously approved the sunsetting of these 
regulations when Alabama began to meet its ongoing NOX SIP 
Call requirements for both EGUs and large non-EGUs through its CAIR 
regulations instead. With respect to the State's CAIR regulations, EPA 
proposes to find removal from the SIP is appropriate because the 
State's ongoing NOX SIP Call obligations for EGUs are now 
being met through the State's SIP-approved CSAPR regulations, the 
State's ongoing NOX SIP Call obligations for non-EGUs would 
be met through the rules proposed for approval into the SIP in this 
action, as discussed above, and EPA is no longer administering the CAIR 
trading programs.
    CAA section 110(l) provides that EPA cannot approve a SIP revision 
if the revision would interfere with any applicable requirement 
concerning attainment or reasonable further progress (RFP), or any 
other applicable requirement of the CAA. EPA generally considers 
whether the SIP revision would worsen, preserve, or improve the status 
quo in air quality.
    ADEM's February 27, 2020 submission seeks to remove the SIP-
approved portions of the state trading program rules adopted to comply 
with annual CAIR programs from Alabama's SIP because the CAIR annual 
programs have been replaced by the CSAPR annual programs. In addition, 
ADEM's February 27, 2020 submission seeks to remove the SIP-approved 
portions of the State's trading program rules adopted to comply with 
ozone season CAIR programs from Alabama's SIP because the CAIR program 
has been replaced by CSAPR for EGUs, and, if approved, Alabama's state 
control program would address the outstanding NOX SIP Call 
requirements for non-EGUs. With respect to non-EGUs, ADEM's February 
27, 2020 submission contains a technical demonstration showing that no 
increase in NOX ozone season emissions is expected to result 
from the removal of CAIR because the combined potential to emit from 
non-EGU sources remains below CAIR budget levels.
    In this notice, EPA is proposing to approve the removal of the 
CAIR-related provisions from Alabama's SIP because removal of these 
provisions is appropriate and consistent with all applicable 
requirements, including 40 CFR 51.121 and CAA section 110(l). As 
explained above, the D.C. Circuit remanded CAIR to EPA in 2008; 
however, the court left CAIR in place while EPA worked to develop a new 
interstate transport rule. CSAPR was promulgated to respond to the 
Court's concerns and to replace CAIR. The implementation of CSAPR was 
delayed for several years beyond its originally expected implementation 
timeframe of 2012, and therefore, the sunsetting of CAIR was also 
deferred. CAIR was implemented through the 2014 compliance periods and 
was replaced by CSAPR on January 1, 2015. EPA promulgated regulations 
to sunset the CAIR trading programs and is no longer

[[Page 12309]]

administering them.\14\ EPA preliminarily concludes that approval of 
the February 27, 2020 Alabama submittal would not result in increased 
NOX emissions, and therefore, would have no impact on any 
requirements related to attainment, reasonable further progress (RFP), 
or any other NAAQS requirements under the CAA. EPA therefore proposes 
to approve the removal of Alabama's SIP provisions related to CAIR.
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    \14\ 40 CFR 51.123(ff) and 52.35(f) (SIP and FIP requirements 
related to NOX); 40 CFR 51.124(s) and 52.36(e) (SIP and 
FIP requirements related to SO2).
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    ADEM further provided an analysis to demonstrate that the 
monitoring flexibilities comply with CAA section 110(l). Given that 
several of the original large non-EGU sources are no longer subject to 
the NOX SIP Call due to shut-downs and that the remaining 
facilities, through compliance with federal permit restrictions, have 
potentials-to-emit that are well below the NOX SIP Call 
budget levels, accompanied by replacement monitoring requirements 
sufficient to ensure compliance with the unchanged emissions 
requirements, this SIP revision is not expected to result in increases 
in emissions. EPA also preliminarily concludes that Alabama's 
monitoring regulations related to the NOX SIP Call will not 
interfere with continued attainment of the NAAQS, RFP, or any other 
applicable requirement of the Clean Air Act.

3. Ministerial Change

    EPA also proposes to approve into the SIP ADEM's non-substantive 
renumbering of the existing regulation titled, ``New Combustion 
Sources'' from Rule 335-3-8-.14 to Rule 335-3-8-.05.

IV. Incorporation by Reference

    In this document, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference Alabama Administrative Code Rule 335-3-8-.71, 
``NOX Budget Program,'' which reestablishes enforceable 
limits on ozone season NOX mass emission for certain units 
as required by EPA's NOX SIP Call regulations, and Rule 335-
3-8-.72, ``NOX Budget Program Monitoring and Reporting,'' 
which establishes alternative emission monitoring requirements for the 
units, effective April 13, 2020. Also in this document, EPA is 
proposing to remove from the SIP the State's NOX Budget 
Trading Program and CAIR trading program regulations at 335-3-1-.14, 
335-3-1-.16, 335-3-5-.06 through 335-3-5-.08, 335-3-5-.11 through 335-
3-5-.14, 335-3-8-.05 through 335-3-8-.13, 335-3-8-.16 through 335-3-
8-.18, 335-3-8-.20, 335-3-8-.21, 335-3-8-.23 through 335-3-8-.27, 335-
3-8-.29, 335-3-8-.30, 335-3-8-.32, and 335-3-8-.33. EPA has made, and 
will continue to make, the SIP generally available through 
www.regulations.gov and at the EPA Region 4 Office (please contact the 
person identified in the For Further Information Contact section of 
this preamble for more information).

V. Proposed Actions

    EPA is proposing to approve Alabama's February 27, 2020 SIP 
revision to Rule 335-3-8-.71, ``NOX Budget Program,'' into 
the SIP, and conditionally approve Alabama's February 27, 2020 SIP 
revision to Rule 335-3-8-.72, ``NOX Budget Program 
Monitoring and Reporting,'' into the SIP. In addition, EPA is proposing 
to remove from the SIP the State's NOX Budget Trading 
Program and CAIR trading program regulations within Chapters 335-3-1, 
titled ``General Provisions,'' 335-3-5, titled ``Control of Sulfur 
Compound Emissions,'' and 335-3-8, titled ``Control of Nitrogen Oxides 
Emissions,'' as identified earlier. EPA is also proposing to update the 
SIP to reflect the State's renumbering of the existing regulation 
titled ``New Combustion Sources'' from Rule 335-3-8-.14 to Rule 335-3-
8-.05.

VI. 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. See 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, these 
proposed actions merely propose to approve, or conditionally approve, 
state law as meeting Federal requirements and do not impose additional 
requirements beyond those imposed by state law. For that reason, these 
proposed actions:
     Are not significant regulatory actions 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);
     Do not impose information collection burdens under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Are certified as not having significant economic impacts 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Do not contain any unfunded mandates or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Do not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Are not economically significant regulatory actions based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Are not significant regulatory actions subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     Are 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
     Do 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, these proposed actions do 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).

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.

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

    Dated: February 25, 2021.
John Blevins,
Acting Regional Administrator, Region 4.
[FR Doc. 2021-04324 Filed 3-2-21; 8:45 am]
BILLING CODE 6560-50-P