Source: https://www.federalregister.gov/documents/2007/09/13/E7-17874/approval-and-promulgation-of-air-quality-implementation-plans-west-virginia-clean-air-interstate
Timestamp: 2018-03-17 07:14:13
Document Index: 569163464

Matched Legal Cases: ['art 96', 'art 96', 'art 96', 'art 96', '§\u200952', '§\u200952']

This rule is effective on November 13, 2007 without further notice, unless EPA receives adverse written comment by October 15, 2007. If EPA receives such comments, it will publish a timely withdrawal of the direct final rule in the Federal Register and inform the public that the rule will not take effect.
72 FR 52289
52289-52293 (5 pages)
FRL-8465-6
E7-17874
IV. What is an Abbreviated CAIR SIP Revision?
V. Analysis of West Virginia's Abbreviated CAIR SIP Submittal
https://www.federalregister.gov/d/E7-17874 https://www.federalregister.gov/d/E7-17874
EPA is taking direct final action to approve a revision to the West Virginia State Implementation Plan (SIP) submitted on June 8, 2007. This revision incorporates provisions related to the implementation of EPA's Clean Air Interstate Rule (CAIR), promulgated on May 12, 2005 and subsequently revised on April 28, 2006 and December 13, 2006, and the CAIR Federal Implementation Plan (CAIR FIP) concerning sulfur dioxide (SO2), nitrogen oxides (NOX) annual, and NOX ozone season emissions for the State of West Virginia, promulgated on April 28, 2006 and subsequently revised on December 13, 2006. In this direct final action, EPA is not making any changes to the CAIR FIP, but is amending the appropriate appendices in the CAIR FIP trading rules simply to note that approval. In accordance with the Clean Air Act, EPA is approving this West Virginia SIP revision as an abbreviated SIP revision which addresses the methodology to be used to allocate annual and ozone season NOX allowances under the CAIR FIPs.
Submit your comments, identified by Docket ID Number EPA-R03-OAR-2007-0448 by one of the following methods:
A. Follow the on-line instructions for submitting comments.
C. Mail: EPA-R03-OAR-2007-0448, Marilyn Powers, Acting Chief, Air Quality Planning Branch, Mailcode 3AP21, U.S. Environmental Protection Agency, Region III, 1650 Arch Street, Philadelphia, Pennsylvania 19103.
Instructions: Direct your comments to Docket ID No. EPA-R03-OAR-2007-0448. EPA's policy is that all comments received will be included in the public docket without change, and may be made available online at http://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 information that you consider to be CBI or otherwise protected through http://www.regulations.gov or e-mail. 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 e-mail comment directly to EPA without going through http://www.regulations.gov, your e-mail 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.
Marilyn Powers, (215) 814-2308 or by e-mail at powers.marilyn@epa.gov.
EPA is approving a revision to West Virginia's SIP, submitted on June 8, 2007 that will modify the application of certain provisions of the CAIR FIP concerning SO2, NOX annual and NOX ozone season emissions. As discussed below, this less comprehensive CAIR SIP is termed an abbreviated SIP. West Virginia is subject to the CAIR FIPs that implement the CAIR requirements by requiring certain EGUs to participate in the EPA-administered Federal CAIR SO2, NOX annual, and NOX ozone season cap-and-trade programs.
The West Virginia SIP revision provides a methodology for allocating NOX allowances for the NOX annual and NOX ozone season trading programs. The CAIR FIPs provide that this methodology, if approved as EPA is proposing, will be used to allocate NOX allowances to sources in West Virginia, instead of the federal allocation methodology otherwise provided in the FIP. EPA is not proposing to make any changes to the CAIR FIP, but is proposing, to the extent EPA approves West Virginia's SIP revision, to amend the appropriate appendices in the CAIR FIP trading rules simply to note that approval. Start Printed Page 52290
CAIR was published by EPA on May 12, 2005 (70 FR 25162). In this rule, EPA determined that 28 States and the District of Columbia contribute significantly to nonattainment and/or interfere with maintenance of the national ambient air quality standards (NAAQS) for fine particles (PM2.5) and/or 8-hour ozone in downwind States in the eastern part of the country. As a result, EPA required those upwind States to revise their SIPs to include control measures that reduce emissions of SO2, which is a precursor to PM2.5 formation, and/or NOX, which is a precursor to both ozone and PM2.5 formation. For jurisdictions that contribute significantly to downwind PM2.5 nonattainment, CAIR sets annual State-wide emission reduction requirements (i.e., budgets) for SO2 and annual State-wide emission reduction requirements for NOX. Similarly, for jurisdictions that contribute significantly to 8-hour ozone nonattainment, CAIR sets State-wide emission reduction requirements for NOX for the ozone season (May 1 to September 30). Under CAIR, States may implement these emission budgets by participating in the EPA-administered cap-and-trade programs or by adopting control measures.
Section 110(a)(2)(D) of the Clean Air Act requires that States prohibit emissions that contribute significantly to nonattainment of, or interfere with, maintenance of the NAAQS in downwind States. CAIR explains to subject States what must be included in SIPs to address the requirements of section 110(a)(2)(D) of the Clean Air Act with regard to interstate transport with respect to the 8-hour ozone and PM2.5 NAAQS. EPA made national findings, effective May 25, 2005, that the States had failed to submit SIPs meeting the requirements of section 110(a)(2)(D).
The SIPs were due in July 2000, 3 years after the promulgation of the 8-hour ozone and PM2.5 NAAQS. These findings started a 2-year clock for EPA to promulgate a Federal Implementation Plan (FIP) to address the requirements of section 110(a)(2)(D). Under Clean Air Act section 110(c)(1), EPA may issue a FIP anytime after such findings are made and must do so within two years unless a SIP revision correcting the deficiency is approved by EPA before the FIP is promulgated.
On April 28, 2006, EPA promulgated FIPs for all States covered by CAIR in order to ensure the emissions reductions required by CAIR are achieved on schedule. Each CAIR State is subject to the FIPs until the State fully adopts, and EPA approves, a SIP revision meeting the requirements of CAIR. The CAIR FIPs require certain EGUs to participate in the EPA-administered CAIR SO2, NOX annual, and NOX ozone-season model trading programs, as appropriate. The CAIR FIP SO2, NOX annual, and NOX ozone season trading programs impose essentially the same requirements as, and are integrated with, the respective CAIR SIP trading programs. The integration of the CAIR FIP and SIP trading programs means that these trading programs will work together to create effectively a single trading program for each regulated pollutant (SO2, NOX annual, and NOX ozone season) in all States covered by CAIR FIP or SIP trading program for that pollutant. The CAIR FIPs also allow States to submit abbreviated SIP revisions that, if approved by EPA, will automatically replace or supplement the corresponding CAIR FIP provisions (e.g., the methodology for allocating NOX allowances to sources in the state), while the CAIR FIP remains in place for all other provisions. The CAIR FIP trading rules include appendices in which EPA intends to list each State for which EPA approves an abbreviated SIP revision. The appendices will indicate which provisions of the CAIR FIP are automatically replaced or supplemented by each approved, abbreviated SIP.
On April 28, 2006, EPA published two CAIR-related final rules that added the States of Delaware and New Jersey to the list of States subject to CAIR for PM2.5 and announced EPA's final decisions on reconsideration of five issues without making any substantive changes to the CAIR requirements.
CAIR establishes State-wide emission budgets for SO2 and NOX and is to be implemented in two phases. The first phase of NOX reductions starts in 2009 and continues through 2014, while the first phase of SO2 reductions starts in 2010 and continues through 2014. The second phase of reductions for both NOX and SO2 starts in 2015 and continues thereafter. CAIR requires States to implement the budgets by either: (1) Requiring EGUs to participate in the EPA-administered cap-and-trade programs or, (2) adopting other control measures of the State's choosing and demonstrating that such control measures will result in compliance with the applicable State SO2 and NOX budgets.
The May 12, 2005 and April 28, 2006 CAIR rules provide model rules that States must adopt (with certain limited changes, if desired) if they want to participate in the EPA-administered trading programs. With two exceptions, only States that choose to meet the requirements of CAIR through methods that exclusively regulate EGUs are allowed to participate in the EPA-administered trading programs. One exception is for States that adopt the opt-in provisions of the model rules to allow non-EGUs individually to opt into the EPA-administered trading programs. The other exception is for States that include all non-EGUs from their NOX SIP Call [1] trading programs in their CAIR NOX ozone season trading programs.
A State submitting an abbreviated SIP revision may submit limited SIP revisions to tailor the CAIR FIP cap-and-trade programs to the state submitting the revision. Specifically, an abbreviated SIP revision may establish certain applicability and allowance allocation provisions that, as the CAIR FIPs provide, will be used instead of, or in conjunction with, the corresponding provisions in the CAIR FIP rules in that State. Specifically, the abbreviated SIP revisions may:
1. Include NOX SIP Call trading sources that are not EGUs under CAIR Start Printed Page 52291in the CAIR FIP NOX ozone season trading program;
2. Provide for allocation of NOX annual or ozone season allowances by the State, rather than the Administrator, and using a methodology chosen by the State;
3. Provide for allocation of NOX annual allowances from the compliance supplement pool (CSP) by the State, rather than by the Administrator, and using the State's choice of allowed alternative methodologies; or
4. Allow units that are not otherwise CAIR units to opt individually into the CAIR FIP cap-and-trade program under the opt-in provisions in the CAIR FIP rules.
With approval of an abbreviated SIP revision, the CAIR FIP remains in place, as tailored to sources in the State by that approved SIP revision. Abbreviated SIP revisions can be submitted in lieu of, or as part of, CAIR full SIP revisions. States may want to designate part of their full SIP as an abbreviated SIP for EPA to act on first when the timing of the State's submission might not provide EPA with sufficient time to approve the full SIP prior to the deadline for recording NOX allocations. This will help ensure that the elements of the trading programs where flexibility is allowed are implemented according to the State's decisions. Submission of an abbreviated SIP revision does not preclude future submission of a CAIR full SIP revision.
As discussed below, West Virginia is requesting approval of only one of the four provisions for which a State may request an abbreviated SIP. The State is requesting that its allocation of NOX annual and NOX ozone season allowances for EGUs under the CAIR FIP be used instead of the corresponding provisions of the CAIR FIPs in effect in the State.
On June 1, 2006, West Virginia submitted a full SIP revision to meet the requirements of CAIR as promulgated on May 12, 2005. The SIP revision is comprised of three regulations: 45CSR39, 45CSR40 and 45CSR41 for the NOX annual trading program, the NOX ozone season trading program, and the SO2 annual trading program, respectively. The regulations adopted the part 96 model rules as set forth in the May 12, 2005 rulemaking, but, because revisions to part 96 were finalized after the State had started its rulemaking process, did not include the changes to the model rules that were made as part of the April 28, 2006 CAIR FIP. Consistent with the provisions of the CAIR FIP as discussed above, West Virginia submitted a letter on June 8, 2007, requesting that portions of its June 1, 2006 SIP revision be considered as an abbreviated SIP revision. The June 8, 2007 letter designated the NOX allocation methodology provisions applicable to EGUs under the CAIR FIP and originally submitted as part of its June 1, 2006 CAIR SIP revision as replacing the corresponding provisions of the CAIR FIPs. Consistent with this request, EPA is treating the following provisions of West Virginia's CAIR rules an abbreviated SIP revision: sections 45-39-40, 45-39-41, and 45-39-42; and sections 45-40-40, 45-40-41, and 45-40-42, except for paragraphs 40.3, 42.2.c, 42.2.d, 42.2.e, 42.3.a.2, and 42.4.b.
The NOX allowance allocation methodology in these provisions of West Virginia's June 1, 2006 SIP revision is consistent with the methodology in part 96 and the FIP, under which units that have operated for five years will receive allowances, based on heat input data from a three-year period adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for oil, and 0.4 for other fuels. Based on this methodology, West Virginia determined NOX allocations for EGUs in the State under the CAIR FIP, and submitted its allocations to EPA on October 30, 2006.
West Virginia's abbreviated SIP revision does not affect the CAIR budgets, which are total amounts of allowances available for allocation for each year under the EPA-administered cap-and-trade programs under the CAIR FIPs. The abbreviated SIP revision only affects allocations of allowances under the established budgets. Information on how the budgets were developed may be found in the May 12, 2005 CAIR rulemaking (70 FR 25162).
EPA is today taking action only on this request for an abbreviated SIP revision and not the full CAIR SIP revision originally submitted, which will be the subject of a separate rulemaking action. In the June 8, 2007 letter, West Virginia states that it will revise and promulgate its CAIR rules 45CSR39, 45CSR40, and 45CSR41 to incorporate the revisions to part 96 and indicates that it plans to submit an amended CAIR SIP revision to EPA in 2008.
EPA is approving West Virginia's abbreviated CAIR SIP revision submitted on June 8, 2007, as discussed above. West Virginia is subject to the CAIR FIPs, which require participation in the EPA-administered SO2, NOX annual, and NOX ozone season cap-and-trade programs. Under this abbreviated SIP revision and, consistent with the flexibility given to States in the FIPs, West Virgnia has adopted provisions for allocating allowances under the CAIR FIP NOX annual and ozone season trading programs. As provided for in the CAIR FIPs, these provisions in the abbreviated SIP revision will replace or supplement the corresponding provisions of the CAIR FIPs in West Virginia. The abbreviated SIP revision meets the applicable requirements in 40 CFR 51.123(p) and (ee), with regard to NOX annual and NOX ozone season emissions. In this final action, EPA is not making any changes to the CAIR FIP, but is amending the appropriate appendices in the CAIR FIP trading rules simply to note approval of West Virginia's abbreviated CAIR SIP.
EPA is publishing this rule without prior proposal because the Agency views this as a noncontroversial amendment and anticipates no adverse comment. However, in the “Proposed Rules” section of today's Federal Register, EPA is publishing a separate document that will serve as the proposal to approve the SIP revision if adverse comments are filed. This rule will be effective on November 13, 2007 without further notice unless EPA receives adverse comment by October 15, 2007. If EPA receives adverse comment, EPA will publish a timely withdrawal in the Federal Register informing the public that the rule will not take effect. EPA will address all public comments in a subsequent final rule based on the proposed rule. EPA will not institute a second comment period on this action. Any parties interested in commenting must do so at this time. 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.
Under Executive Order 12866 (58 FR 51735, October 4, 1993), this action is not a “significant regulatory action” and therefore is not subject to review by the Office of Management and Budget. For this reason, this action is also not subject to Executive Order 13211, “Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use” (66 FR 28355, May 22, 2001). This action merely approves state law as meeting Federal requirements and imposes no additional requirements beyond those imposed by Start Printed Page 52292state law. Accordingly, the Administrator certifies that this rule will not have a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because this rule approves pre-existing requirements under state law and does not impose any additional enforceable duty beyond that required by state law, it 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). This rule also does not have tribal implications because it will not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes, as specified by Executive Order 13175 (65 FR 67249, November 9, 2000). This action also does not have Federalism implications because it does not have substantial direct effects on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government, as specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This action merely approves a state rule implementing a Federal requirement, and does not alter the relationship or the distribution of power and responsibilities established in the Clean Air Act. This rule also is not subject to Executive Order 13045 “Protection of Children from Environmental Health Risks and Safety Risks” (62 FR 19885, April 23, 1997), because it approves a State rule implementing a Federal standard.
Under section 307(b)(1) of the Clean Air Act, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by November 13, 2007. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this rule 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 to approve West Virginia's abbreviated CAIR SIP revision may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).)
2. In § 52.2520, the table in paragraph (c) is amended by adding entries for 45 CSR 39 and 40 at the end of the table. The table in paragraph (e) is amended by adding the entry for Article 3, Chapter 64 of the Code of West Virginia at the end of the table. The amendments read as follows:
Additional explanation/ citation at 40 CFR § 52.2565
[45 CSR] Series 39 Control of Annual Nitrogen Oxide Emissions to Mitigate Interstate Transport of Fine Particulate Matter and Nitrogen Ozides
Section 45-39-40 CAIR NOX Annual Trading Budget 5/1/06 9/13/07 [Insert page number where the document begins] Only Phase I (2009-2014).
Section 45-39-41 Timing Requirements for CAIR NOX Annual Allowance Allocations 5/1/06 9/13/07 [Insert page number where the document begins] Only Phase I (2009-2014).
Start Printed Page 52293
Section 45-39-42 CAIR NOX Annual Allowance Allocations 5/1/06 9/13/07 [Insert page number where the document begins] Only for Phase I (2009-2014).
[45 CSR] Series 40 Control of Ozone Season Nitrogen Oxide Emissions to Mitigate Interstate Transport of Ozone and Nitrogen Ozides
Section 45-40-40 CAIR NOX Ozone Season Trading Budget 5/1/06 9/13/07 [Insert page number where the document begins] 1. Except for subsection 40.3, and non-EGUs in subsection 40.1 table 2. Only Phase I (2009-2014).
Section 45-40-41 Timing Requirements for CAIR NOX Ozone Season Allowance Allocations 5/1/06 9/13/07 [Insert page number where the document begins] Only Phase I (2009-2014).
Section 45-40-42 CAIR NOX Ozone Season Allowance Allocations 5/1/06 9/13/07 [Insert page number where the document begins] 1. Except for subsections 42.2.d, 42.2.e, 42.3.a.2, and 42.4.b. 2. Only Phase I (2009-2014).
Article 3, Chapter 64 of the Code of West Virginia, 1931 Statewide 5/1/06 9/13/07 [Insert page number where the document begins] Effective date of March 11, 2006.
4. Appendix A to Subpart EE is amended by adding the entry for “West Virginia” in alphabetical order under paragraph 1 to read as follows:
West Virginia (for control periods 2009—2014)
5. Appendix A to Subpart EEEE is amended by adding the entry for West Virginia in alphabetical order under paragraph 1 to read as follows:
1. EPA promulgated the NOX SIP Call on October 27, 1998 (63 FR 57356) to address transported emissons of ozone in 22 States and the District of Columbia that significantly contributed to downwind nonattainment of the one-hour ozone standard. The NOX SIP Call trading program applied to large EGUs and large industrial units.
[FR Doc. E7-17874 Filed 9-12-07; 8:45 am]