Document ID: EPA-R01-OAR-2014-0498-0002
Agency: epa
Document Type: Rule
Title: Air Quality State Implementation Plans; Approvals and Promulgations: Connecticut; Approval of NOx Emission Offset Credits as Single Source SIP Revisions
Posted Date: 2015-08-03T04:00Z

[Federal Register Volume 80, Number 148 (Monday, August 3, 2015)]
[Rules and Regulations]
[Pages 45887-45890]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-18872]

=======================================================================
-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R01-OAR-2014-0498, FRL-9927-49-Region 1]

Approval and Promulgation of Air Quality Implementation Plans; 
Connecticut; Approval of NOX Emission Offset Credits as 
Single Source SIP Revisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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

SUMMARY: The Environmental Protection Agency (EPA) is approving a State 
Implementation Plan (SIP) revision submitted by the State of 
Connecticut. The revision approves amendments to two existing Trading 
and Agreement Orders for new source review nitrogen oxides 
(NOX) emission offsets at PSEG Power Connecticut's facility 
in Bridgeport, Connecticut. This action is being taken in accordance 
with the Clean Air Act.

DATES: This direct final rule will be effective October 2, 2015, unless 
EPA receives adverse comments by September 2, 2015. If adverse comments 
are received, EPA will publish a timely withdrawal of the direct final 
rule in the Federal Register informing the public that the rule will 
not take effect.

ADDRESSES: Submit your comments, identified by Docket ID Number EPA-
R01-OAR-2014-0498 by one of the following methods:
    1. www.regulations.gov: Follow the on-line instructions for 
submitting comments.
    2. Email: dahl.donald@epa.gov.
    3. Fax: (617) 918-0657.
    4. Mail: ``Docket Identification Number EPA-R01-OAR-2014-0498'', 
Donald Dahl, U.S. Environmental Protection Agency, EPA New England 
Regional Office, Office of Ecosystem Protection, Air Permits, Toxics, 
and Indoor Programs Unit, 5 Post Office Square--Suite 100, (Mail code 
OEP05-2), Boston, MA 02109-3912.
    5. Hand Delivery or Courier. Deliver your comments to: Donald Dahl, 
Air Permits, Toxics, and Indoor Programs Unit, Office of Ecosystem 
Protection, U.S. Environmental Protection Agency, EPA New England 
Regional Office, 5 Post Office Square, 5th floor, (OEP05-2), Boston, MA 
02109-3912. Such deliveries are only accepted during the Regional 
Office's normal hours of operation. The Regional Office's official 
hours of business are Monday through Friday, 8:30 to 4:30 excluding 
legal holidays.
    Instructions: Direct your comments to Docket ID No. EPA-R01-OAR-
2014-0498. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available online at 
www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit through www.regulations.gov, or 
email, information that you consider to be CBI or otherwise protected. 
The www.regulations.gov Web site is an ``anonymous access'' systems, 
which means EPA will not know your identity or contact information 
unless you provide it in the body of your comment. If you send an email 
comment directly to EPA without going through www.regulations.gov your 
email address will be automatically captured and included as part of 
the comment that is placed in the public docket and made available on 
the Internet. If you submit an electronic comment, EPA recommends that 
you include your name and other contact information in the body of your 
comment and with any disk or CD-ROM you submit. If EPA cannot read your 
comment due to technical difficulties and cannot contact you for 
clarification, EPA may not be able to consider your comment. Electronic 
files should avoid the use of special characters, any form of 
encryption, and be free of any defects or viruses.
    Docket: All documents in the electronic docket are listed in the 
www.regulations.gov index. Although listed in the index, some 
information is not publicly available, i.e., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, is not placed on the Internet and will be 
publicly available only in hard copy form. Publicly available docket 
materials are available either electronically in www.regulations.gov or 
in hard copy at Office of Ecosystem Protection, U.S. Environmental 
Protection Agency, EPA New England Regional Office, 5 Post Office 
Square, Suite 100, Boston, MA. EPA requests that if at all possible, 
you contact the contact listed in the FOR FURTHER INFORMATION CONTACT 
section to schedule your inspection. The Regional Office's official 
hours of business are Monday through Friday, 8:30 to 4:30 excluding 
legal holidays.
    In addition to the publicly available docket materials available 
for inspection electronically in the Federal Docket Management System 
at www.regulations.gov, and the hard copy available at the Regional 
Office, which are identified in the ADDRESSES section

[[Page 45888]]

of this Federal Register, copies of the state submittals are also 
available for public inspection during normal business hours, by 
appointment at the State Air Agency. The Bureau of Air Management, 
Department of Energy and Environmental Protection, State Office 
Building, 79 Elm Street, Hartford, CT 06106-1630.

FOR FURTHER INFORMATION CONTACT: Donald Dahl, Air Permits, Toxics, and 
Indoor Programs Unit, Office of Ecosystem Protection, U.S. 
Environmental Protection Agency, EPA New England Regional Office, 5 
Post Office Square, Suite 100, (OEP05-2), Boston, MA 02109-3912, phone 
number (617) 918-1657, fax number (617) 918-0657, email 
Dahl.Donald@epa.gov.

SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,'' 
``us,'' or ``our'' is used, we mean EPA.

Table of Contents

I. What did Connecticut submit as a SIP revision?
II. What is the background for EPA's action in this notice?
III. How does Connecticut account for bank emission reduction 
credits (ERC) in its Ozone SIP?
IV. What is EPA's analysis of Connecticut's SIP revision?
V. Final Action
VI. Incorporation by Reference
VII. Statutory and Executive Order Reviews

I. What did Connecticut submit as a SIP revision?

    On October 31, 2012, the State of Connecticut submitted a formal 
revision to its State Implementation Plan (SIP). The SIP revision 
consists of two modifications to existing Trading and Agreement Orders 
(TAO) issued to PSEG Power Connecticut, LLC. The modified TAOs are No. 
8187 Modification 1 issued to PSEG Power Connecticut, LLC (formerly 
Wisvest Connecticut LLC.) and No. 8242 Modification 1 issued to PSEG 
Power Connecticut, LLC. The modified TAOs remove an outdated 
restriction in the original TAOs No. 8187 and No. 8242 that limited the 
use of the NOX offsets to sources that were also subject to 
a NOX emission trading program in Section 22a-174-22a or 
22a-174-22b of Connecticut's regulations, or another NOX 
budget trading program established by another state in accordance with 
the Ozone Transport Commission Memorandum of Understanding dated 
September 27, 1994 or 40 CFR part 96. Connecticut held a public hearing 
on the proposed SIP revision on October 19, 2012.

II. What is the background for EPA's action in this notice?

    EPA approved the original TAO No. 8187 on March 23, 2001 (see 66 FR 
16135). This TAO recognized that Wisvest, the owner of Bridgeport 
Harbor Electric Generating Station at the time, voluntarily reduced 
actual NOX emissions from Unit No. 2. The TAO made the 
voluntary reductions mandatory, thus creating a permanent, enforceable 
reduction of 816 tons of NOX emissions at Unit No. 2. 
Subsequently, these NOX emission reductions could be used 
for offsetting NOX emissions for sources subject to the 
nonattainment new source review permitting program under Connecticut's 
Regulation Section 22a-174-3a. As discussed above, TAO No. 8187 also 
limited the use of the NOX offsets to sources that were also 
subject to a NOX emission trading program in Section 22a-
174-22a or 22a-174-22b of Connecticut's regulations, or another 
NOX budget trading program established by another state in 
accordance with the Ozone Transport Commission Memorandum of 
Understanding dated September 27, 1994 or 40 CFR part 96.
    In late 2001, 424 tons of NOX offset credits from the 
original 816 tons were transferred to sources subject to nonattainment 
new source review in New York and are no longer available for use in 
Connecticut. Moreover, in late 2001, 192 tons of NOX offset 
credits were transferred to a private entity and held for future use.
    On December 6, 2002, PSEG purchased Bridgeport Harbor Electric 
Generating Station from Wisvest along with the remaining 200 tons of 
the 816 tons NOX offsets created by TAO No. 8187. To 
recognize this transaction, Connecticut issued a new TAO (No. 8242) on 
February 13, 2003 that acknowledged the change in ownership of the 
facility and the 200 tons of NOX offsets from Wisvest to 
PSEG. EPA approved TAO No. 8242 on September 9, 2013 (78 FR 54962). As 
with the original TAO that created the NOX offsets (i.e., 
TAO No. 8187), TAO No. 8242 also limited the use of NOX 
offsets for nonattainment new source review to sources that were also 
subject to a NOX emission trading program in Section 22a-
174-22a or 22a-174-22b of Connecticut's regulations, or another 
NOX budget trading program established by another state in 
accordance with the Ozone Transport Commission Memorandum of 
Understanding dated September 27, 1994 or 40 CFR part 96.
    Under Connecticut's Regulations for the Abatement of Air Pollution, 
Section 22a-174-22a was repealed effective September 4, 2007, and 
Section 22a-174-22b was repealed May 1, 2010. Moreover, with the 
transition from the Clean Air Interstate Rule (CAIR) to the Cross-State 
Air Pollution Rule (CSAPR), the State of Connecticut is no longer part 
of any trading program under 40 CFR part 96. As such, the original 
restrictions in TAOs No. 8187 and 8242 are now outdated and would no 
longer serve the purpose for which they were created.

III. How does Connecticut account for bank emission reduction credits 
(ERC) in its Ozone SIP?

    On February 1, 2008, Connecticut submitted its 2002 to 2008 
reasonable further progress (RFP) plans and 2002 base year inventory to 
EPA as part of its attainment demonstration SIP submittal for the 1997 
8-hr ozone standard. On October 14, 2009, Connecticut submitted a 
revision to the RFP plans which it had originally submitted to EPA on 
February 1, 2008. The revision consisted of the incorporation of a 
small number of banked NOX ERCs into the state's RFP 
analysis. Those banked NOX ERCs were incorporated into 
Connecticut's 2002 and 2008 emission inventories, and included all of 
the remaining unused portion of the 816 tons of NOX offsets 
created under TAO No. 8187 (i.e., the 200 tons of NOX owned 
by PSEG under TAO No. 8242, and the 192 tons of NOX 
transferred to a private entity in late 2001). The inclusion of the 
banked ERCs into the RFP analysis did not alter Connecticut's 
conclusion that it easily meets RFP requirements, and EPA approved 
Connecticut's RFP plans on August 22, 2012 (77 FR 50595). Since ERCs 
represent emissions that may occur at some point in the future, banked 
emissions need to be accounted for in a state's RFP analysis, and 
Connecticut has properly done that.

IV. What is EPA's analysis of Connecticut's SIP revision?

    Today, EPA is approving two modifications to existing TAOs that 
will allow the NOX offset credits, originally created in TAO 
No. 8187, to be used for nonattainment new source review without the 
additional outdated restrictions contained in the original TAOs No. 
8187 and 8242. As described above, Connecticut has properly accounted 
for the unused portion of the NOX offset credits (i.e., 392 
tons) from the original TAO No. 8187 in the state's RFP analysis, and 
thus these credit remain available for future use.
    This action does not alter any existing requirements in 
Connecticut's approved SIP that a facility must meet when using

[[Page 45889]]

NOX emission reductions to offset any new permitted 
emissions. This is important to note since subsection 22a-174-
3a(l)(4)(B)(ii) of Connecticut's regulations states that:

    ``(B) The commissioner shall not grant a permit to an owner or 
operator of the subject source or modification unless the owner or 
operator demonstrates that internal offset or certified emission 
reduction credits pursuant to subparagraph (A) of this subdivision:
    (i) . . .
    (ii) are not otherwise required by any of the following: the 
Act; a federally enforceable permit or order; the State 
Implementation Plan; or the regulations or statutes in effect when 
such application is filed,''

    Pursuant to this provision in Section 22a-174-3a, the unused 
portion of the NOX emission reduction credits originally 
created under TAO No. 8187 will need to be adjusted pursuant to 
subsection 22a-174-22(e)(3) of Connecticut's regulations. This 
provision in Section 22a-174-22 was adopted by Connecticut after the 
original issuance of TAO No. 8187 and requires sources such as Unit No. 
2 at Bridgeport Harbor Electric Generating Station to meet a 
NOX emission limit of 0.15 lbs/MMBtu during the nonozone 
season. Because the NOX emission limit for Unit No. 2 became 
more stringent after the time when the NOX offset credits 
were first created, the original number of tons of NOX 
offset credits must be adjusted downward to reflect the new, more 
stringent NOX emission limit, before a source subject to 
NNSR may use the credits.

V. Final Action

    Pursuant to section 110 of the CAA, EPA is approving Trading and 
Agreement Orders No. 8187 Modification 1 issued to PSEG Power 
Connecticut, LLC (formerly Wisvest Connecticut LLC) and 8242 
Modification 1 issued to PSEG Power Connecticut, LLC. The EPA is 
publishing this action without prior proposal because the Agency views 
this as a noncontroversial amendment and anticipates no adverse 
comments. However, in the proposed rules section of this Federal 
Register publication, EPA is publishing a separate document that will 
serve as the proposal to approve the SIP revision should relevant 
adverse comments be filed. This rule will be effective October 2, 2015 
without further notice unless the Agency receives relevant adverse 
comments by September 2, 2015.
    If the EPA receives such comments, then EPA will publish a notice 
withdrawing the final rule and informing the public that the rule will 
not take effect. All public comments received will then be addressed in 
a subsequent final rule based on the proposed rule. The EPA will not 
institute a second comment period on the proposed rule. All parties 
interested in commenting on the proposed rule should do so at this 
time. If no such comments are received, the public is advised that this 
rule will be effective on October 2, 2015 and no further action will be 
taken on the proposed rule. Please note that if EPA receives adverse 
comment on an amendment, paragraph, or section of this rule and if that 
provision may be severed from the remainder of the rule, EPA may adopt 
as final those provisions of the rule that are not the subject of an 
adverse comment.

VI. Incorporation by Reference

    In this rule, the EPA is finalizing regulatory text that includes 
incorporation by reference. In accordance with requirements of 1 CFR 
51.5, the EPA is finalizing the incorporation by reference of the 
[State Agency Regulations] described in the amendments to 40 CFR part 
52 set forth below. The EPA has made, and will continue to make, these 
documents generally available electronically through 
www.regulations.gov and/or in hard copy at the appropriate EPA office 
(see the ADDRESSES section of this preamble for more information).

VII. Statutory and Executive Order Reviews

    Under the Clean Air Act, the Administrator is required to approve a 
SIP submission that complies with the provisions of the Act and 
applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). 
Thus, in reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. 
Accordingly, this action merely approves state law as meeting Federal 
requirements and does not impose additional requirements beyond those 
imposed by state law. For that reason, this action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     does not have Federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001);
     is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act; and
     does not provide EPA with the discretionary authority to 
address, as appropriate, disproportionate human health or environmental 
effects, using practicable and legally permissible methods, under 
Executive Order 12898 (59 FR 7629, February 16, 1994).
    In addition, the SIP is not approved to apply on any Indian 
reservation land or in any other area where EPA or an Indian tribe has 
demonstrated that a tribe has jurisdiction. In those areas of Indian 
country, the rule does not have tribal implications and will not impose 
substantial direct costs on tribal governments or preempt tribal law as 
specified by Executive Order 13175 (65 FR 67249, November 9, 2000).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this action and 
other required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the

[[Page 45890]]

Congress and to the Comptroller General of the United States. Section 
804, however, exempts from section 801 the following types of rules: 
Rules of particular applicability; rules relating to agency management 
or personnel; and rules of agency organization, procedure, or practice 
that do not substantially affect the rights or obligations of non-
agency parties. 5 U.S.C. 804(3). Because this is a rule of particular 
applicability, EPA is not required to submit a rule report regarding 
this action under section 801.
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by October 2, 2015. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this action for the purposes of 
judicial review nor does it extend the time within which a petition for 
judicial review may be filed, and shall not postpone the effectiveness 
of such rule or action. Parties with objections to this direct final 
rule are encouraged to file a comment in response to the parallel 
notice of proposed rulemaking for this action published in the proposed 
rules section of this Federal Register, rather than file an immediate 
petition for judicial review of this direct final rule, so that EPA can 
withdraw this direct final rule and address the comment in the proposed 
rulemaking. This action may not be challenged later in proceedings to 
enforce its requirements. (See section 307(b)(2).)

List of Subjects in 40 CFR Part 52

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

    Dated: April 29, 2015.
H. Curtis Spalding,
Regional Administrator, EPA New England.

    Part 52 of chapter I, title 40 of the Code of Federal Regulations 
is amended as follows:

PART 52--[AMENDED]

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

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

Subpart H--Connecticut

0
2. Section 52.370 is amended by adding paragraph (c)(109) to read as 
follows:

Sec.  52.370  Identification of plan.

* * * * *
    (c) * * *
    (109) Revisions to the State Implementation Plan submitted by the 
Connecticut Department of Environmental Protection on October 31, 2012.
    (i) Incorporation by reference.
    (A) Connecticut Trading Agreement and Order No. 8187, Modification 
1 issued to PSEG Power Connecticut LLC on July 16, 2012.
    (B) Connecticut Trading Agreement and Order No. 8242, Modification 
1 issued to PSEG Power Connecticut LLC on July 16, 2012.

0
3. In Sec.  52.385, Table 52.385 is amended by adding new entries to an 
existing state citation for 22a-174-22 to read as follows:

Sec.  52.385  EPA-approved Connecticut regulations.

* * * * *

                                                         Table 52.385--EPA-Approved Regulations
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                      Dates
                                                        --------------------------------   Federal Register
    Connecticut State citation         Title/Subject      Date adopted    Date approved        citation        Section 52.370     Comments/Description
                                                            by State         by EPA
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                      * * * * * * *
22a-174-22.......................  Control of Nitrogen          7/16/12          8/3/15  [Insert Federal      (c)(109)........  Connecticut Trading
                                    Oxides emissions.                                     Register page                          Agreement and Order No.
                                                                                          number where the                       8187, Modification 1.
                                                                                          document begins].
22a-174-22.......................  Control of Nitrogen          7/16/12          8/3/15  [Insert Federal      (c)(109)........  Connecticut Trading
                                    Oxides emissions.                                     Register page                          Agreement and Order No.
                                                                                          number where the                       8242, Modification 1.
                                                                                          document begins].
 
                                                                      * * * * * * *
--------------------------------------------------------------------------------------------------------------------------------------------------------

[FR Doc. 2015-18872 Filed 7-31-15; 8:45 am]
 BILLING CODE 6560-50-P