Source: https://www.federalregister.gov/documents/2015/08/21/2015-20629/approval-and-promulgation-of-air-quality-implementation-plans-state-of-kansas-cross-state-air
Timestamp: 2018-03-20 19:24:24
Document Index: 506627111

Matched Legal Cases: ['art 97', 'art 97', 'art 51', 'art 51', '§\u200997', 'art 97', 'art 97', '§\u200952', '§\u200952', '§\u200952']

Federal Register :: Approval and Promulgation of Air Quality Implementation Plans; State of Kansas; Cross-State Air Pollution Rule
Approval and Promulgation of Air Quality Implementation Plans; State of Kansas; Cross-State Air Pollution Rule
This direct final rule will be effective September 30, 2015, without further notice, unless EPA receives adverse comment by September 21, 2015. If EPA receives adverse comment, we will publish a timely withdrawal of the direct final rule in the Federal Register informing the public that the rule will not take effect.
80 FR 50789
50789-50794 (6 pages)
FRL-9932-83-Region 7
2015-20629
II. 2016 CSAPR SIPs
III. What is EPA's analysis of Kansas' SIP submission?
https://www.federalregister.gov/d/2015-20629 https://www.federalregister.gov/d/2015-20629
The Environmental Protection Agency (EPA) is taking direct final action to approve revisions to the State Implementation Plan (SIP) submitted by the State of Kansas in a letter dated March 30, 2015. This SIP revision provides Kansas' state-determined allowance allocations for existing electric generating units (EGUs) in the State for the 2016 control periods and replaces certain allowance allocations for the 2016 control periods established by EPA under the Cross-State Air Pollution Rule (CSAPR). The CSAPR addresses the “good neighbor” provision of the Clean Air Act (CAA or Act) that requires states to reduce the transport of pollution that significantly affects downwind air quality. In this final action EPA is approving Kansas' SIP revision, incorporating the state-determined allocations for the 2016 control periods into the SIP, and amending the regulatory text of the CSAPR Federal Implementation Plan (FIP) to reflect this approval and inclusion of the state-determined allocations. EPA is taking direct final action to approve Kansas' SIP revision because it meets the requirements of the CAA and the CSAPR requirements to replace EPA's allowance allocations for the 2016 control periods. This action is being taken pursuant to the CAA and its implementing regulations. EPA's allocations of CSAPR trading program allowances for Kansas for control periods in 2017 and beyond remain in place until the State submits and EPA approves state-determined allowance allocations for those control periods through another SIP revision. The CSAPR FIPs for Kansas remain in place until such time as the State decides to replace the FIPs with a SIP revision.
Submit your comments, identified by Docket ID No. EPA-R07-OAR-2015-0564, by one of the following methods:
Instructions: Direct your comments to Docket ID No. EPA-R07-OAR-2015-0564. 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 Start Printed Page 50790information 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 http://www2.epa.gov/​dockets/​commenting-epa-dockets. The www.regulations.gov Web site is an “anonymous access” system, 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.
Lachala Kemp, Environmental Protection Agency, Air Planning and Development Branch, 11201 Renner Boulevard, Lenexa, Kansas 66219 at 913-551-7214 or by email at Kemp.lachalasa@epa.gov.
III. What is EPA's analysis of Kansas' submission?
EPA is taking direct final action to approve revisions to the SIP submitted by the State of Kansas in a letter dated March 30, 2015, that modifies the allocations of annual NOX allowances established by EPA under the CSAPR FIPs for existing EGUs for the 2016 control periods.[1] The CSAPR allows a subject state, instead of EPA, to allocate allowances under the SO2 annual, NOX annual, and NOX ozone season trading programs to existing EGUs in the State for the 2016 control periods provided that the state meets certain regulatory requirements.[2] EPA issued the CSAPR on August 8, 2011, to address CAA section 110(a)(2)(D)(i)(I) requirements concerning the interstate transport of air pollution and to replace the Clean Air Interstate Rule [3] (CAIR), which the United States Court of Appeals for the District of Columbia Circuit (DC Circuit) remanded to EPA for replacement.[4] EPA found that emissions of SO2 and NOX in 28 eastern, midwestern, and southern states [5] contribute significantly to nonattainment or interfere with maintenance in one or more downwind states with respect to one or more of three air quality standards—the annual PM2.5 NAAQS promulgated in 1997 [6] (15 micrograms per cubic meter (µg/m[3] )), the 24-hour PM2.5 NAAQS promulgated in 2006 [7] (35 µg/m[3] ), and the 8-hour ozone NAAQS promulgated in 1997 [8] (0.08 parts per million). The CSAPR identified emission reduction responsibilities of upwind states, and also promulgated enforceable FIPs to achieve the required emission reductions in each of these states through cost effective and flexible requirements for power plants.
Kansas is subject to the FIPs that implement the CSAPR and require certain EGUs to participate in the EPA-administered Federal SO2 annual and NOX annual cap-and trade programs.[9] Kansas' March 30, 2015, SIP revision allocates allowances under the CSAPR to existing EGUs in the State for the 2016 control periods only. Kansas' SIP revision includes state-determined allocations for the CSAPR NOX annual trading program, and complies with the 2016 NOX allowance allocation SIP requirements set forth at 40 CFR 52.38. Pursuant to these regulations, a state may replace EPA's CSAPR NOX allowance allocations for existing EGUs for the 2016 control periods provided that the state submits a timely SIP revision containing those allocations to EPA that meets the requirements in 40 CFR 52.38.
Through this action, EPA is approving Kansas' March 30, 2015, SIP revision, incorporating the allocations into the SIP, and amending the CSAPR FIP's regulatory text for Kansas at 40 CFR 52.882 to reflect this approval and inclusion of the state-determined allowance allocation for the 2016 control periods. EPA's allocations of CSAPR trading program allowances for Kansas for control periods in 2017 and beyond remain in place until the State submits and EPA approves state-determined allocations for those control periods through another SIP revision. EPA is not making any other changes to the CSAPR FIPs for Kansas in this action. The CSAPR FIPs for Kansas remain in place until such time the Start Printed Page 50791State decides to replace the FIPs with a SIP revision. EPA is taking direct final action to approve Kansas' March 30, 2015, SIP submission because it complies with the CAA and the CSAPR regulations. Below is a summary of the provisions allowing a state to submit SIP revisions to EPA to modify the 2016 allowance allocations. For more detailed information on the CSAPR, refer to the August 8, 2011, preamble and other subsequent related rulemakings referenced throughout this rulemaking.
The CSAPR allows states to determine allowance allocations for 2016 control periods through submittal of a complete SIP revision that is narrower in scope than an abbreviated or full SIP submission that states may use to replace the FIPs and/or to determine allocations for control periods in 2017 and beyond. Pursuant to the CSAPR, a state may adopt and include in a SIP revision for the 2016 control period a list of units and the amount of allowances allocated to each unit on the list, provided the list of units and the allocations meet specific requirements set forth in 40 CFR 52.38(a)(3) and (b)(3) for NOX and 52.39(d) and (g) for SO2. If these requirements are met, the Administrator will approve the SIP allowance allocation provisions as replacing the comparable provisions in 40 CFR part 97 for the State. SIP revisions under this expedited process may only allocate the amount of each state budget minus the new unit set-aside and the Indian country new unit set-aside. For states subject to multiple trading programs, options are available to submit 2016 state-determined allocations for one or more of the applicable trading programs while leaving unchanged the EPA-determined allocations for 2016 in the remaining applicable trading programs.[10]
In developing this procedure, EPA set deadlines for submitting the SIP revisions for 2016 allocations and for recordation of the allocations that balanced the need to record allowances sufficiently ahead of the control periods with the desire to allow state flexibility for 2016 control periods. These deadlines allow sufficient time for EPA to review and approve these SIP revisions, taking into account that EPA approval must be final and effective before the 2016 allocations can be recorded and the allowances are available for trading. The CSAPR, as revised, set a deadline of October 17, 2011, or March 6, 2015, (in the case of allocations of ozone season allowances for states covered by the Supplemental Rule) for states to notify EPA of their intent to submit these SIP revisions.[11] See 40 CFR 52.38 and 52.39.
Twelve states, including Kansas, notified EPA by the applicable deadlines of their intentions to submit SIP revisions affecting 2016 allocations.[12] Pursuant to EPA's December 3, 2014, Interim Final Rule,[13] the deadlines to submit these SIPs were delayed by three years, making the deadline for these twelve states to submit a 2016 allocation SIP revision April 1, 2015, or October 1, 2015 (in the case of allocations of ozone season NOX allowances for states covered by the Supplemental Rule). Each state may submit a SIP to allocate allowances for the 2016 control periods provided it meets the following requirements pursuant to 40 CFR 52.38 and 52.39:
Notify the EPA Administrator by October 17, 2011 or March 6, 2015, (in the case of allocations of ozone season NOX allowances for states covered by the Supplemental Rule) of intent to submit state allocations for the 2016 control periods in a format specified by the Administrator. See 40 CFR 52.38(a)(3)(v)(A), 52.38(b)(3)(v)(A), 52.39(d)(5)(i), and 52.39(g)(5)(i).
Submit to EPA the SIP revision modifying allowance allocations for the 2016 control periods no later than April 1, 2015, or October 1, 2015 (in the case of allocations of ozone season NOX allowances for states covered by the Supplemental Rule). See 40 CFR 52.38(a)(3)(v)(B), 52.38(b)(3)(v)(B), 52.39(d)(5)(ii), and 52.39(g)(5)(ii).
Provide 2016 state-determined allocations only for units within the State that commenced commercial operation before January 1, 2010. See 40 CFR 52.38(a)(3)(i), 52.38(b)(3)(i), 52.39(d)(1), and 52.39(g)(1).
Ensure that the sum of the state-determined allocations is equal to or less than the amount of the total state budget for 2016 minus the sum of the new unit set-aside and the Indian country new unit set-aside. See 40 CFR 52.38(a)(3)(ii), 52.38(b)(3)(ii), 52.39(d)(2), and 52.39(g)(2).
Submit the list of units and the 2016 state-determined allowance allocations as a SIP revision electronically to EPA in the format specified by the Administrator. See 40 CFR 52.38(a)(3)(iii), 52.38(b)(3)(iii), 52.39(d)(3), and 52.39(g)(3).
Confirm that the SIP revision does not provide for any changes to the listed units or allocations after approval of the SIP revision by EPA and does not provide for any change to any allocation determined and recorded by the Administrator under subpart AAAAA, BBBBB, CCCCC, or DDDDD of 40 CFR part 97. See 40 CFR 52.38(a)(3)(iv), 52.38(b)(3)(iv), 52.39(d)(4), and 52.39(g)(4).
Additionally, these limited SIP revisions for the 2016 state-determined allocations are required to comply with SIP completeness elements set forth in 40 CFR part 51, appendix V (i.e., conduct adequate public notice of the submission, provide evidence of legal authority to adopt SIP revisions, and ensure that the SIP is submitted to EPA by the State's Governor or his/her designee). If a state submits to EPA a 2016 CSAPR SIP revision meeting all the above-described requirements, including compliance with the applicable notification and submission deadlines, and EPA approves the SIP submission by October 1, 2015 (or April 1, 2016, in the case of allocations of ozone season NOX allowances for states covered by the Supplemental Rule), EPA will record state-determined allocations for 2016 by October 1, 2015, (or April 1, 2016) into the Allowance Management System (AMS). Kansas' March 30, 2015 SIP submission addresses the aforementioned requirements allowing a state to allocate 2016 CSAPR allowances for the annual NOX trading program. EPA's analysis of Kansas's SIP submission is explained below.
On March 30, 2015, Kansas submitted a SIP revision intended to replace the CSAPR FIP allocations of the CSAPR NOX annual allowances for the 2016 control periods. For approval, this SIP revision must meet the applicable requirements found in 40 CFR 52.38(a)(3) described in section II of this document. The following is a list of criteria under 40 CFR 52.38(a)(3) and (b)(3) and 52.39(d) and (g), described above in this document, and the results Start Printed Page 50792of EPA's analysis of Kansas' SIP revision:
A. Notification from a State to EPA must be received by October 17, 2011, or March 6, 2015, in the case of ozone season NOX SIP revisions for states covered by the December 27, 2011 Supplemental Rule (76 FR 80760), of its intent to submit a complete SIP revision for 2016 existing unit allocations (40 CFR 52.38(a)(3)(v)(A), 52.38(b)(3)(v)(A), 52.39(d)(5)(i), and 52.39(g)(5)(i)).
On October 14, 2011, Kansas notified EPA via a letter of the State's intent to submit complete SIP revisions for allocating TR NOX Annual allowances [14] to existing units (i.e., units that commenced commercial operation before January 1, 2010) for the second implementation year of the CSAPR trading programs.[15]
B. A complete SIP revision must be submitted to EPA no later than April 1, 2015, or October 1, 2015, in the case of ozone season NOX SIP revisions for states covered by the December 27, 2011 Supplemental Rule (76 FR 80760) (40 CFR 52.38(a)(3)(v)(B), 52.38(b)(3)(v)(B), 52.39(d)(5)(ii), and 52.39(g)(5)(ii)).
EPA has reviewed the March 30, 2015 submittal from Kansas and found it to be complete. This submittal satisfies the applicable elements of SIP completeness set forth in appendix V to 40 CFR part 51.
C. The SIP revision should include a list of TR NOX Annual, TR NOX Ozone Season, TR SO2 Group 1 or Group 2 units, whichever is applicable, that are in the State and commenced commercial operation before January 1, 2010 (40 CFR 52.38(a)(3)(i), 52.38(b)(3)(i), 52.39(d)(1), and 52.39(g)(1)).
As part of Kansas' SIP revision, the State submitted a list of units to be allocated TR NOX Annual allowances for the 2016 control period. The list identifies the same units as were identified in the notice of data availability (NODA) published by EPA on December 3, 2014 (79 FR 71674). Hence, EPA has determined that each unit on the list submitted by Kansas as part of the SIP revision is located in the State of Kansas and had commenced commercial operation before January 1, 2010.
D. The total amount of TR NOX Annual, TR NOX Ozone Season, or TR SO2 Group 1 or Group 2 allowance allocations, whichever is applicable, must not exceed the amount, under 40 CFR 97.410(a), 97.510(a), 97.610(a), or 97.710(a), whichever is applicable, for the State and the control periods in 2016, of the TR NOX Annual, TR NOX Ozone Season, TR SO2 Group 1 or Group 2 trading budget minus the sum of the new unit set-aside and Indian country new unit set-aside (40 CFR 52.38(a)(3)(ii), 52.38(b)(3)(ii), 52.39(d)(2), and 52.39(g)(2)).
As amended, the CSAPR established the NOX Annual budget, new unit set-aside, and Indian country new unit set-aside for Kansas for the 2016 control period as 31,354 tons, 596 tons, and 31 tons, respectively. Kansas' SIP revision, for approval in this action, does not affect this budget, which is a total amount of allowances available for allocation for the 2016 control period under the EPA-administered cap-and-trade program under the CSAPR FIPs. In short, the abbreviated SIP revision only affects allocations of allowances under the established state budget.
The Kansas SIP revision allocating TR NOX Annual allowances for the 2016 control period does not establish allocations exceeding the amount of the budget under § 97.410(a) minus the sum of the new unit set-aside and the Indian County new unit set aside (31,354 tons−(596 tons + 31 tons) = 30,727 tons). The Kansas SIP revision allocates 30,727 TR NOX Annual allowances to existing units in the State.
E. The list should be submitted electronically in the format specified by the EPA (40 CFR 52.38(a)(3)(iii), 52.38(b)(3)(iii), 52.39(d)(3), and 52.39(g)(3)).
On March 30, 2015, EPA received an email submittal from Kansas in the EPA-approved format.
F. The SIP revision should not provide for any changes to the listed units or allocations after approval of the SIP revision and should not provide for any change to any allocation determined and recorded by the Administrator under subpart AAAAA, BBBBB, CCCCC, or DDDDD of 40 CFR part 97 (40 CFR 52.38(a)(3)(iv), 52.38(b)(3)(iv), 52.39(d)(4), and 52.39(g)(4)).
The Kansas SIP revision does not provide for any changes to the listed units or allocations after approval of the SIP revision and does not provide for any change to any allocation determined and recorded by the Administrator under subpart AAAAA, BBBBB, CCCCC, or DDDDD of 40 CFR part 97.
For the reasons discussed above, Kansas' SIP revision complies with the 2016 allowance allocation SIP requirements established in the CSAPR FIPs as codified at 40 CFR 52.38. Through this action, EPA is approving Kansas' March 30, 2015, SIP revision, incorporating the allocations into the SIP, and amending the CSAPR FIPs' regulatory text for Kansas at 40 CFR 52.882 to reflect this approval and inclusion of the state-determined allowance allocations for the 2016 control periods. EPA is not making any other changes to the CSAPR FIPs for Kansas in this action. EPA is taking final action to approve Kansas' March 30, 2015 SIP revision because it is in accordance with the CAA and its implementing regulations.
EPA is taking final action to approve Kansas' March 30, 2015, CSAPR SIP revisions that provide Kansas' state-determined allowance allocations for existing EGUs in the State for the 2016 control periods to replace certain allowance allocations for the 2016 control periods established by EPA under the CSAPR. Consistent with the flexibility given to states in the CSAPR FIPs at 40 CFR 52.38, Kansas' SIP revision allocates allowances to existing EGUs in the State under the CSAPR's NOX annual trading program. Kansas' SIP revision meets the applicable requirements in 40 CFR 52.38 for NOX annual allowance allocations for the 2016 control periods. EPA is approving Kansas' SIP revision because it is in accordance with the CAA and its implementing regulations.
EPA is publishing this rule without prior proposal because the Agency views this as a noncontroversial submittal 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 adverse comments be filed. This rule will be effective September 30, 2015 without further notice unless the Agency receives adverse comments by September 21, 2015.
If EPA receives such comments, then EPA will publish a document 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. EPA will not institute a second comment period. Parties interested in commenting should do so Start Printed Page 50793at this time. If no such comments are received, the public is advised that this rule will be effective on September 30, 2015 and no further action will be taken on the proposed rule.
Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by October 20, 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. This action may not be challenged later in proceedings to enforce its requirements. (See CAA section 307(b)(2).)
2. In § 52.870(e), the table is amended by adding a new entry (40) at the end of the table to read as follows:
(40) Cross State Air Pollution Rule—State-Determined Allowance Allocations for the 2016 control periods Statewide 3/30/15 8/21/2015 [Insert Federal Register citation]
3. Section 52.882 is amended by adding paragraph (a)(3) to read as follows:
§ 52.882
(3) Pursuant to § 52.38(a)(3), Kansas' state-determined TR NOX Annual allowance allocations established in the March 30, 2015, SIP revision replace the unit-level TR NOX Annual allowance allocation provisions of the TR NOX Annual Trading Program at 40 CFR 97.411(a) for the State for the 2016 control period with a list of TR NOXStart Printed Page 50794Annual units that commenced operation prior to January 1, 2010, in the State and the state-determined amount of TR NOX Annual allowances allocated to each unit on such list for the 2016 control period, as approved by EPA on August 21, 2015, [Insert Federal Register citation].
1. Federal Implementation Plans: Interstate Transport of Fine Particulate Matter and Ozone and Correction of SIP Approvals; August 8, 2011 (76 FR 48208).
2. The CSAPR is implemented in two Phases (I and II) with Phase I referring to 2015 and 2016 control periods, and Phase II consisting of 2017 and beyond control periods.
3. Rule To Reduce Interstate Transport of Fine Particulate Matter and Ozone (Clean Air Interstate Rule); Revisions to Acid Rain Program; Revisions to the NOX SIP Call; May 12, 2005 (70 FR 25162).
4. North Carolina v. EPA, 531 F.3d 896 (D.C. Cir. 2008), modified on reh'g, 550 F.3d 1176 (D.C. Cir. 2008).
5. The CSAPR obligations related to ozone-season NOX emissions for five states were established in a separate rule referred to as the Supplemental Rule. Federal Implementation Plans for Iowa, Michigan, Missouri, Oklahoma, and Wisconsin and Determination for Kansas Regarding Interstate Transport of Ozone; December 27, 2011 (76 FR 80760).
6. National Ambient Air Quality Standards for Particulate Matter; July 18, 1997 (62 FR 36852).
7. National Ambient Air Quality Standards for Particulate Matter; October 17, 2006 (71 FR 61144).
8. National Ambient Air Quality Standards for Ozone; July 18, 1997 (62 FR 38856).
9. On July 28, 2015, the DC Circuit, issued an opinion upholding CSAPR, but remanding without vacatur certain state emissions budgets to EPA for reconsideration. EME Homer City Generation, L.P. v. EPA, No. 11-1302, slip op. CSAPR implementation at this time remains unaffected by the court decision, and EPA will address the remanded emissions budgets in a separate rulemaking. Moreover, Kansas's emissions budgets were not among those remanded to EPA for reconsideration.
10. States can also submit SIP revisions to replace EPA-determined, existing-unit allocations with state-determined allocations for control periods after 2016 via a separate process described at 40 CFR 52.38(a)(4), (a)(5), (b)(4), and (b)(5) and 52.39(e), (f), (h), and (i).
11. For the five states (Iowa, Michigan, Missouri, Oklahoma, and Wisconsin) covered in the Supplemental Rule in the case of ozone season NOX, March 6, 2012, was originally the date by which notifications of intentions to submit state allocations were due to the Administrator, but the date was later delayed to March 6, 2015. See 76 FR 80760 and 79 FR 71671.
12. The docket for this action contains Kansas' October 14, 2011 letter notifying EPA of its intention to submit a SIP revision.
13. Rulemaking to Amend Dates in Federal Implementation Plans Addressing Interstate Transport of Ozone and Fine Particulate Matter; December 3, 2014 (79 FR 71663).
14. The abbreviation “TR” in certain legal terms used in the CSAPR trading programs, including the legal terms for the trading program allowances, stands for “Transport Rule,” an earlier name for the CSAPR.
15. The October 14, 2011 letter submitted to EPA by Kansas also indicates that the State intended to submit a SIP revision for allocating TR NOX Ozone Season allowances (if EPA's proposal to include Kansas in that program was finalized) and TR SO2 Group 2 allowances. After that letter was submitted EPA did not finalize the proposal to include Kansas in the TR NOX Ozone Season Trading Program and the State decided not to submit a SIP revision for the TR SO2 Group 2 allocations for the 2016 control period.
[FR Doc. 2015-20629 Filed 8-20-15; 8:45 am]