[Federal Register Volume 71, Number 246 (Friday, December 22, 2006)]
[Proposed Rules]
[Pages 77100-77147]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21573]
[[Page 77099]]
-----------------------------------------------------------------------
Part II
Environmental Protection Agency
-----------------------------------------------------------------------
40 CFR Parts 60, 62, 72, and 78
Revisions of Standards of Performance for New and Existing Stationary
Sources; Electric Utility Steam Generating Units; Federal Plan
Requirements for Clean Air Mercury Rule; and Revisions of Acid Rain
Program Rules; Proposed Rule
Federal Register / Vol. 71, No. 246 / Friday, December 22, 2006 /
Proposed Rules
[[Page 77100]]
-----------------------------------------------------------------------
ENVIRONMENTAL PROTECTION AGENCY
40 CFR Parts 60, 62, 72, and 78
[EPA-HQ-OAR-2006-0905; FRL-8255-1]
RIN 2060-AN98
Revisions of Standards of Performance for New and Existing
Stationary Sources; Electric Utility Steam Generating Units; Federal
Plan Requirements for Clean Air Mercury Rule; and Revisions of Acid
Rain Program Rules
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
-----------------------------------------------------------------------
SUMMARY: In this action, EPA proposes a Federal Plan to implement Clean
Air Act (CAA) section 111 mercury (Hg) standards of performance for new
and existing coal-fired electric utility steam generating units
(Utility Unit or EGU) located in States or Indian Country covered by
the Clean Air Mercury Rule (CAMR) which do not have EPA approved and
currently effective State plans. The EPA will not take final action on
the proposed Federal Plan until EPA either finds that a State has
failed to timely submit a plan or disapproves a submitted plan. Any
final Federal Plan is expected to serve primarily to temporarily fill a
regulatory gap in circumstances where either a State fails to timely
submit a plan or EPA disapproves a submitted plan as, in either case,
States will be free to submit an approvable plan after promulgation of
the Federal Plan and upon approval of the State Plan by EPA, the
Federal Plan will no longer apply to coal-fired Utility Units covered
by the State Plan.
This action also proposes certain revisions to both the CAMR State
Plan model cap-and-trade rule (in order to make it compatible with the
Federal Plan cap-and-trade rule and to make technical corrections) and
the Acid Rain Program regulations (in order to simplify the provision
concerning alternate designated representatives and to make the
administrative appeals process applicable to the decisions of the
Administrator under the State Plan and Federal Plan cap-and-trade
rules).
DATES: Comments. Comments on this proposal must be received on or
before February 20, 2007. A public hearing will be held in Washington,
DC prior to the end of the public comment period. EPA will publish a
separate Federal Register notice announcing the date, location, and
time for the public hearing. Please refer to SUPPLEMENTARY INFORMATION
for additional information on the public hearing.
ADDRESSES: Submit your comments, identified by Docket ID Number EPA-HQ-
OAR-2006-0905, by one of the following methods:
A. Federal Rulemaking Portal: http://www.regulations.gov. Follow
the on-line instructions for submitting comments.
B. E-mail: [email protected].
C. Mail: Air Docket, ATTN: Docket Number EPA-HQ-OAR-2006-0905,
Environmental Protection Agency, Mail Code: 6102T, 1200 Pennsylvania
Ave., NW., Washington, DC 20460.
D. Hand Delivery: EPA Docket Center, 1301 Constitution Avenue, NW.,
Room 3334, Washington, DC. Such deliveries are only accepted during the
Docket's normal hours of operation, and special arrangements should be
made for deliveries of boxed information.
Instructions: Direct your comments to Docket ID No. EPA Docket
Number EPA-HQ-OAR-2006-0905. 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
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 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.
Docket: All documents in the 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 the EPA Docket Center, EPA West, Room 3334, 1301
Constitution Avenue, NW., Washington, DC. The Public Reading Room is
open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding
legal holidays. The telephone number for the Public Reading Room is
(202) 566-1744, and the telephone number for the Air Docket is (202)
566-1742.
FOR FURTHER INFORMATION CONTACT: For information concerning this
proposed CAMR Federal Plan as well as Integrated Planning Model (IPM)
analyses performed in developing the final CAMR, contact Meg Victor,
Program Development Branch, Clean Air Markets Division (MC 6204J), EPA,
Washington, DC 20460; telephone number (202) 343-9193; fax number (202)
343-2359; electronic mail address: [email protected].
For information concerning all other analyses performed in
developing the final CAMR, contact Mr. William Maxwell, Energy
Strategies Group, Sector Policies and Programs Division (Mail Code
D243-01), EPA, Research Triangle Park, North Carolina 27711; telephone
number (919) 541-5430; fax number (919) 541-5450; electronic mail
address: [email protected].
SUPPLEMENTARY INFORMATION:
Regulated Entities. Categories and entities potentially regulated
by this action include the following:
------------------------------------------------------------------------
NAICS code Examples of potentially
Category \1\ regulated entities
------------------------------------------------------------------------
Industry......................... 221112 Fossil fuel-fired
electric utility steam
generating units.
Federal Government............... \2\ 221122 Fossil fuel-fired
electric utility steam
generating units owned
by the Federal
government.
State/local/Tribal government.... \2\ 221122 Fossil fuel-fired
electric utility steam
generating units owned
by municipalities.
[[Page 77101]]
921150 Fossil fuel-fired
electric utility steam
generating units in
Indian country.
------------------------------------------------------------------------
\1\ North American Industry Classification System.
\2\ Federal, State, or local government-owned and operated
establishments are classified according to the activity in which they
are engaged.
This table is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be regulated by this
action. This table lists examples of the types of entities EPA is now
aware could potentially be regulated by this action. Other types of
entities not listed could also be affected. To determine whether your
facility, company, business, organization, etc., is regulated by this
action, you should examine the applicability criteria in 40 CFR 60.45Da
of the final new source performance standards (NSPS) amendments and 40
CFR 60.24(h) of the final CAMR. If you have questions regarding the
applicability of this action to a particular entity, consult your State
or local agency (or EPA Regional Office).
World Wide Web. In addition to being available in the docket, an
electronic copy of this action will also be available on the World Wide
Web through EPA's Office of Air and Radiation. Following signature by
the Administrator, a copy of this action will be posted on the CAMR
page at http://www.epa.gov/camr.
Public Hearing. A public hearing will be held in Washington, DC
prior to the end of the public comment period. EPA will publish a
future Federal Register notice announcing the details of the public
hearing including the time, date, and location, and will announce the
public hearing on EPA's Web site for this rulemaking at http://
www.epa.gov/CAMR.
Because the hearing will be held at a U.S. Government facility,
everyone planning to attend should be prepared to show valid picture
identification to the security staff in order to gain access to the
meeting room. Oral testimony will be limited to 5 minutes per
commenter. The EPA encourages commenters to provide written versions of
their oral testimonies either electronically (on computer disk or CD-
ROM) or in paper copy. Verbatim transcripts and written statements will
be included in the rulemaking docket.
The public hearing will provide interested parties the opportunity
to present data, views, or arguments concerning the proposed rule. The
EPA may ask clarifying questions during the oral presentations, but
will not respond to the presentations or comments at that time. Written
statements and supporting information submitted during the comment
period will be considered with the same weight as any oral comments and
supporting information presented at a public hearing.
Outline. The information presented in this preamble is organized as
follows:
I. Background
A. Summary of This Action
B. Regulatory Background of CAMR
C. State Plan Requirements
II. Federal Plan Process
A. Legal Authority for Federal Plan
B. Implementation of Federal Plan
C. Timing of Federal Plan Action
D. Federal Plan Control Measures
E. National Mercury Budget and Compliance Dates
F. State and Indian Country Emission Budgets
III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg Cap-and-Trade Program
B. Sources Affected Under the Federal Cap-and-Trade Rule
C. Allocation of Emission Allowances
D. Allowance Banking
E. Source-Level Emissions Monitoring and Reporting Requirements
F. Compliance and Penalties
G. Elements of the Federal Hg Trading Program That Differ From
the State Model Hg Trading Program
IV. Proposed Revisions of the CAMR State Model Cap-and-Trade Program
Rule
V. Proposed Revisions of the Acid Rain Program Regulations
VI. Units Subject to the CAMR Federal Plan and New Source
Performance Standards
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
B. Paperwork Reduction Act
C. Regulatory Flexibility Act
D. Unfunded Mandates Reform Act
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination With
Indian Tribal Governments
G. Executive Order 13045: Protection of Children From
Environmental Health and Safety Risks
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act
J. Executive Order 12898: Federal Actions To Address
Environmental Justice in Minority Populations and Low-Income
Populations
I. Background
A. Summary of This Action
On May 18, 2005, EPA finalized CAMR and established standards of
performance for Hg for new and existing coal-fired electric utility
steam generating units (Utility Units or EGUs). (The standards of
performance for existing Utility Units are in the form of emission
guidelines which do not apply to individual sources until they are
implemented through an EPA approved State plan or a promulgated Federal
plan.) (See 70 FR 28606.) CAMR established a mechanism by which Hg
emissions from new and existing coal-fired Utility Units are capped at
specified, nation-wide levels. A first phase cap of 38 tpy becomes
effective in 2010, and a second phase cap of 15 tpy becomes effective
in 2018. EPA then set State level emission caps that States must meet
and developed an emissions cap-and-trade program States can use to meet
these caps. State plans to implement and enforce these standards of
performance were due to EPA by November 17, 2006.\1\ Under 40 CFR
60.27(b), the Administrator must approve or disapprove State Plans
within 4 months of the November 17, 2006 submission deadline.
---------------------------------------------------------------------------
\1\ In a separate Federal Register notice entitled ``Notice of
Finding that Certain States Did Not Submit Clean Air Mercury Rule
(CAMR) State Plans for New and Existing Electric Utility Steam
Generating Units and Status of Submission of Such Plans,'' EPA made
findings that certain States did not submit CAMR State Plans by the
November 17, 2006 deadline and otherwise provided notice of the
status of State Plan submissions.
---------------------------------------------------------------------------
CAA section 111 requires States, and CAA section 301(d) and the
Tribal Air Rule, 40 CFR part 49, allow Tribes granted treatment as
States (TAS), with existing coal-fired Utility Units to submit plans to
EPA that implement and enforce the standards of performance. The CAMR
itself requires States to submit a plan for addressing Hg emissions
from new Utility Units even if there are no existing Utility Units in
the State.
CAA section 111(d)(2) grants the Administrator the same authority
to prescribe a plan for a State in cases where the State fails to
submit a satisfactory plan as he would have under section 110(c) of the
CAA in the case of a State's failure to submit an
[[Page 77102]]
implementation plan. Section 60.27 of 40 CFR part 60 directs the
Administrator to promptly prepare and publish proposed regulations for
a State if the State fails to submit a plan by the prescribed deadline
or the Administrator disapproves the State's submitted plan and to
promulgate those regulations by the date 6 months after the date
required for plan submission. Thus, if a State didn't submit a plan by
November 17, 2006, EPA is required to promulgate a Federal Plan no
later than 6 months after the deadline, unless, prior to such
promulgation, the State submits a plan that the Administrator
determines to be approvable. In this action, EPA proposes a Federal
Plan to implement standards of performance for Utility Units located in
all States, the District of Columbia, and Indian Country covered by
CAMR (see 40 CFR 60.24(h)(1) listing the jurisdictions covered by CAMR)
for which a plan was not submitted by November 17, 2006.\2\ In
addition, with regard to jurisdictions that submitted plans by November
17, 2006, EPA proposes to adopt a Federal Plan, as set forth in today's
notice, in the event that EPA reviews the submitted plan and determines
that the plan does not meet the requirements of CAMR. The EPA believes
that it is appropriate to propose now the Federal Plan that would apply
to each jurisdiction without an approvable plan, whether or not the
jurisdiction involved submitted a plan by November 17, 2006. In all of
these potential circumstances, the Agency would be hard pressed to both
propose and promulgate a Federal Plan of this magnitude in a six-month
time period and so must begin the process now by proposing the Federal
Plan that would apply if the Agency determines that the jurisdiction
does not have an approvable plan. Because in today's action EPA is
proposing the Federal Plan that would apply to any jurisdiction that
the Agency determines not to have an approvable plan, the Agency
requests that all persons with concerns about or comments on the
proposed Federal Plan submit comments in response to today's notice,
whether such concerns or comments involve sources in jurisdictions that
submitted plans by November 17, 2006 or jurisdictions that did not
submit plans by that deadline. Today's action provides the opportunity
for public comment on the Federal Plan that the Agency proposes to use
for any jurisdiction for which the Agency may promulgate a Federal Plan
under 40 CFR 60.27 because of the absence of a plan meeting the
requirements of CAMR. The EPA will not take final action on the
proposed Federal Plan for any specific jurisdiction until EPA either
finds that a plan has not been timely filed or disapproves a submitted
plan. (See also ``Notice of Finding that Certain States Did Not Submit
Clean Air Mercury Rule (CAMR) State Plans for New and Existing Electric
Utility Steam Generating Units and Status of Submission of Such
Plans.'')
---------------------------------------------------------------------------
\2\ Under the TAR (40 CFR part 49), which implements CAA section
301(d), Tribes may elect to be treated in the same manner as a State
in implementing sections of the CAA. However, EPA determined in the
TAR that it was inappropriate to treat Tribes in a manner similar to
a State with regard to specific plan submittal and implementation
deadlines.
---------------------------------------------------------------------------
B. Regulatory Background of CAMR
1. Relevant Federal Register Actions
On December 20, 2000, EPA issued a finding pursuant to CAA section
112(n)(1)(A) that it was appropriate and necessary to regulate coal-
and oil-fired Utility Units under CAA section 112. In making this
finding, EPA considered the results of the study mandated by CAA
section 112(n)(1)(A) (the Utility Study), which was completed and
submitted to Congress in February 1998.
In December 2000, EPA concluded that the positive appropriate and
necessary determination under CAA section 112(n)(1)(A) constituted a
decision to list coal- and oil-fired Utility Units on the CAA section
112(c) source category list. Relying on CAA section 112(e)(4), EPA
explained in its December 2000 finding that neither the appropriate and
necessary finding under CAA section 112(n)(1)(A) nor the associated
listing were subject to judicial review at that time. EPA did not add
natural-gas fired units to the CAA section 112(c) list in December
2000, because it did not make a positive appropriate and necessary
finding for such units.
On January 30, 2004, EPA published in the Federal Register a notice
of proposed rulemaking (NPR) entitled ``Proposed National Emissions
Standards for Hazardous Air Pollutants; and, in the Alternative,
Proposed Standards of Performance for New and Existing Stationary
Sources: Electric Utility Steam Generating Units.'' (See 69 FR 4652.)
In that NPR, EPA proposed three alternative regulatory approaches.
First, EPA proposed to retain the December 2000 Finding and associated
listing of coal- and oil-fired Utility Units and to issue maximum
achievable control technology-based (MACT) national emission standards
for hazardous air pollutants (NESHAP) for such units under CAA section
112. Second, EPA alternatively proposed revising the Agency's December
2000 Finding, removing coal- and oil-fired Utility Units from the CAA
section 112(c) list,\3\ and issuing final standards of performance
under CAA section 111 using emissions cap-and-trade for new and
existing coal-fired units that emit Hg and new and existing oil-fired
units that emit nickel (Ni). Finally, as a third possible alternative,
EPA took comment on retaining the December 2000 finding and regulating
Hg emissions from Utility Units under CAA section 112(n)(1)(A) using a
cap-and-trade approach.
---------------------------------------------------------------------------
\3\ We did not propose revising the December 2000 finding for
gas-fired Utility Units because EPA continues to believe that
regulation of such units under CAA section 112 is not appropriate
and necessary. We, therefore, take no action today with regard to
gas-fired Utility Units.
---------------------------------------------------------------------------
On March 16, 2004, EPA published in the Federal Register a
supplemental notice of proposed rulemaking (SNPR) entitled
``Supplemental Notice for the Proposed National Emission Standards for
Hazardous Air Pollutants; and, in the Alternative, Proposed Standards
of Performance for New and Existing Stationary Sources: Electric
Utility Steam Generating Units.'' (See 69 FR 12398.) In the SNPR, EPA
proposed certain additional regulatory text that largely addressed the
proposed CAA section 111 standards of performance for Hg, which
included a cap-and-trade program. The SNPR also proposed State Plan
approvability criteria and a model cap-and-trade rule for Hg emissions
from coal-fired Utility Units.
On December 1, 2004, EPA published in the Federal Register a notice
of data availability (NODA) entitled ``Proposed National Emission
Standards for Hazardous Air Pollutants; and, in the Alternative,
Proposed Standards of Performance for New and Existing Stationary
Sources, Electric Utility Steam Generating Units: Notice of Data
Availability.'' (See 69 FR 69864.) EPA issued this NODA: (1) To seek
additional input on certain new data and information concerning Hg that
the Agency received in response to the January 30, 2004 NPR and March
16, 2004 SNPR; and (2) to seek input on a revised proposed benefits
methodology for assessing the benefits of regulating Hg.
On March 29, 2005 (70 FR 15994), EPA revised the December 2000
appropriate and necessary finding and concluded that it is not
appropriate and necessary to regulate coal- and oil-fired Utility Units
under CAA section 112. We took this action because we now believe that
the December 2000 finding lacked foundation and because recent
information demonstrates that it is not
[[Page 77103]]
appropriate or necessary to regulate coal- and oil-fired Utility Units
under CAA section 112. Based solely on the revised finding, we removed
coal- and oil-fired Utility Units from the CAA section 112(c) list and
instead established standards of performance for Hg for new and
existing coal-fired Utility Units under CAA section 111 on May 18, 2005
(70 FR 28606). The regulations promulgated pursuant to EPA's authority
under CAA section 111 established a mechanism by which Hg emissions
from new and existing coal-fired Utility Units are capped at specified,
nation-wide levels. A first phase cap of 38 tons per year becomes
effective in 2010, and a second phase cap of 15 tons per year becomes
effective in 2018. The final CAMR included State Plan approvability
criteria and a model cap-and-trade rule for Hg emissions from coal-
fired Utility Units.
2. CAA Section 111 Authority
CAA section 111 creates a program for the establishment of
``standards of performance.'' A ``standard of performance'' is ``a
standard for emissions of air pollutants which reflects the degree of
emission limitation achievable through the application of the best
system of emission reduction, which (taking into account the cost of
achieving such reduction, any non-air quality health and environmental
impacts and energy requirements), the Administrator determines has been
adequately demonstrated.'' (42 U.S.C. 7411(a)(1).)
For new sources, EPA must first establish a list of stationary
source categories, which the Administrator has determined ``causes, or
contributes significantly to, air pollution which may reasonably be
anticipated to endanger public health or welfare.'' (42 U.S.C.
7410(b)(1)(A).) EPA must then set Federal standards of performance for
new sources within each listed source category. (42 U.S.C.
7411(b)(1)(B).) The standards for new sources under CAA section 111(b)
apply nationally and are applicable to sources on which construction,
reconstruction or modification is commenced after the date of proposal
of the standards. (See id.)
Existing sources are addressed under CAA section 111(d). EPA must
issue a standard of performance for existing sources in a source
category for a pollutant if it has established a standard of
performance for new sources covering an air pollutant for which air
quality criteria have not been issued or which is not included on a
list published under CAA section 108(a), even where those pollutants
are subject to the standard for new sources. (See 42 U.S.C.
7411(d)(1)). CAA section 111(d) authorizes EPA to promulgate standards
of performance that States must adopt through a SIP-like process, which
requires State rulemaking action followed by review and approval of
State Plans by EPA. If a State fails to submit a satisfactory plan, EPA
has the authority to prescribe a plan for the State. (See 42 U.S.C.
7411(d)(2)(A).)
The final CAMR (70 FR 28606; May 18, 2005) discusses in more detail
(i) The applicable standards of performance for Hg from new coal-fired
Utility Units under CAA section 111(b), (ii) the legal authority under
CAA section 111(d) to regulate Hg from existing coal-fired Utility
Units, and (iii) the legal authority to implement a cap-and-trade
program for existing and new Utility Units.
C. State Plan Requirements
1. Summary of State Plan Requirements
As finalized under CAMR (70 FR 28632), each State is required to
submit a State Plan that assures compliance with the State's assigned
Statewide Hg emission budget for coal-fired Utility Units. CAMR is
described here primarily for the convenience of the reader, and EPA is
only requesting comments on CAMR with regard to revisions to the CAMR
State model trading rule that are proposed in this notice. See Section
IV of this preamble. Because the State must meet a coal-fired EGU Hg
emission budget, all emission reductions must necessarily come from
coal-fired Utility Units. Each State Plan should include fully-adopted
State rules for the EGU Hg reduction strategy with compliance dates
providing for controls by 2010 and 2018 that will achieve the State EGU
Hg emissions budgets. The State Plans were due by November 17, 2006. As
a required element of a State Plan, a State must demonstrate that it
has the legal authority to adopt and implement the emission
requirements and compliance schedules in the State Plan. The State also
must identify the enforceable State mechanism for implementing the
emission guidelines (e.g., a State rule or other State enforcement
mechanism). Following receipt of a State Plan, EPA has up to 4 months
to approve or disapprove the plan. (See 40 CFR 60.27(b).)
The emission reduction requirement in CAMR applies to all coal-
fired Utility Units located in all 50 States of the U.S., the District
of Columbia, as well as those located in Indian country. (As used
herein, the term ``Indian country'' generally refers to all areas
within Indian reservations, dependent Indian communities, and Indian
allotments.) CAMR includes mercury emission budgets for coal-fired
Utility Units located in Indian country; the emission budgets cover
both existing and new units. EPA generally will implement the emission
trading rule for coal-fired Utility Units located in Indian country
unless a Tribe seeks and obtains Treatment-as-a-State (TAS) status and
submits a Tribal Plan to implement the allocated Hg emissions budget.
Eligible Tribes which choose to do so will be responsible for
submitting a Tribal Plan analogous to the State Plans discussed
throughout this preamble, and, like States, can choose to adopt the
model trading rule.
2. Performance Standard Approvability Criteria
As discussed in CAMR (70 FR 28616), CAA sections 111(a) and (d)(1)
authorize EPA to promulgate a ``standard of performance'' that States
must apply to existing EGU sources through a State Plan, and EPA
interpreted the term ``standard of performance,'' as applied to
existing EGU sources, to include a cap-and-trade program.
The State EGU Hg budgets are not an independently enforceable
requirement. Rather, each State must impose control requirements that
the State demonstrates will limit Statewide Hg emissions from affected
new and existing EGU sources to no more than the amount of the EGU Hg
budget. Under CAMR, EPA finalized that States may meet their Statewide
EGU Hg emission budgets by allowing their EGU sources to participate in
a national cap-and-trade program. That is, a State may authorize its
affected EGU sources to buy and sell Hg allowances allocated in or
outside of the State, so that any difference between the State's EGU Hg
budget and the total amount of Statewide EGU Hg emissions will be
offset in another State (or other States). Regardless of State
participation in the national cap-and-trade program, EPA believes that
the best way to assure this emission limitation is for the State to
limit total EGU Hg emissions for new and existing units in the State to
the amount of the State EGU Hg budget. In addition, EPA finalized that
sources will be required to comply with the 40 CFR part 75
requirements. EPA believes that compliance with these requirements is
necessary to demonstrate compliance with a mass emissions limit.
[[Page 77104]]
II. Federal Plan Process
A. Legal Authority for Federal Plan
CAA section 111(d) and 40 CFR 60.24(h) require States to develop
and implement State Plans for coal-fired Utility Units designed to
implement and enforce the promulgated Hg emission guidelines. The State
Plans were due by November 17, 2006. Following receipt of a State Plan,
EPA has up to 4 months to approve or disapprove the plan. (CAA section
111(d)(2)(A) provides EPA the same authority to prescribe a plan for a
State in cases where the State fails to submit a satisfactory plan as
the Agency would have under CAA section 110(c) in the case of a failure
to submit an implementation plan.)
EPA is proposing a CAMR Federal Plan that will fulfill the Agency's
obligation under the CAA to establish emission limits and other
requirements for coal-fired Utility Units located in States that have
not timely submitted approvable plans or for which EPA has disapproved
a submitted plan. EPA is proposing the Federal Plan under the legal
authority of CAA sections 111(d)(2) and 301(a). The Federal Plan is
intended, upon promulgation, to implement the emission guidelines
adopted as part of CAMR. Any final Federal Plan is expected to serve
primarily to temporarily fill a regulatory gap in circumstances where
either a State fails to timely submit a plan or EPA disapproves a
submitted plan as, in either case, States will be free to submit an
approvable plan after promulgation of the Federal Plan and upon
approval of the State Plan by EPA, the Federal Plan will no longer
apply to coal-fired Utility Units covered by the State Plan.
B. Implementation of Federal Plan
Congress has determined that the primary responsibility for air
pollution control rests with State and local agencies. See 42 U.S.C.
1401(a)(3). It is also intended under CAA section 111 that the States
take the primary responsibility for ensuring that emission reduction
targets are met. (See, 42 U.S.C. 7411(d)(1).) Accordingly, EPA has
designed the proposed CAMR Federal Plan to readily facilitate the
transfer of authority for implementing and enforcing the emission
guidelines from EPA to State and local agencies. For this action, EPA
is identifying two mechanisms for transferring implementation
responsibility to State and local agencies: (1) If EPA approves a State
Plan submitted to EPA after the Federal Plan is promulgated and is
effective in that State, the approved State Plan will supersede the
Federal Plan. (In approving the State Plan, EPA may impose conditions
it determines necessary to ensure that the transition from the Federal
Plan to the approved State Plan will be minimally disruptive.); or (2)
if EPA approves a State allocation methodology that addresses only
allowance allocations and meets certain requirements for such
allocations, EPA would implement the Federal Plan except for the
allocation provisions that the State would implement under the approved
State allocation methodology.\4\
---------------------------------------------------------------------------
\4\ The proposed option for States to implement allowance
allocations under a CAMR Federal Plan is similar to the option with
respect to Clean Air Interstate Rule (CAIR) implementation wherein a
State can submit an abbreviated CAIR SIP revision to make
implementation decisions about certain elements of the CAIR FIP
trading programs (71 FR 25345). The proposed CAMR option is limited
to allowance allocations.
---------------------------------------------------------------------------
1. State Submits a State Plan After Becoming Subject to the Federal
Plan--Full Transfer of Authority Through State Plan Approval
Even after coal-fired Utility Units in a particular State become
subject to the Federal Plan, the State or a local agency may still
adopt and submit to EPA for approval a State Plan. The EPA will
determine if the State Plan is at least as protective as the CAMR
emission guidelines. If EPA determines that the State Plan is at least
as protective as the emission guidelines, EPA will approve the State
Plan. Upon the approval and effectiveness of the State Plan, the
Federal Plan will no longer apply and the State will implement and
enforce the State Plan in lieu of the Federal Plan. Making the State
Plan effective as soon as possible after approval expedites a State's
assumption of responsibility for implementing the CAMR emission
guidelines through the State Plan mechanism as intended by Congress.
(EPA recognizes, however, that there may be circumstances in which it
will be necessary to delay the effective date of an approved State
Plan, or impose other conditions in approving the State Plan, in order
to minimize the impacts of any disruption resulting from the transition
from the Federal Plan to an approved State Plan.) If EPA determines
that the State Plan is not at least as protective as the guidelines,
EPA cannot approve the State Plan.
2. State Implements Allowance Allocations Under the Federal Plan
The State may implement allowance allocations even if there is not
a State Plan in effect. EPA believes that, to the extent authorized by
State law, States may want to undertake implementation of Hg
allocations under a Federal Plan cap-and-trade program. A State could
choose to submit a State allocation methodology, rather than submitting
a State Plan addressing all elements of the Hg model trading rule (see
Section III.C of this preamble for discussion of allocations). In this
way, the State could choose to allocate Hg allowances to its EGU
sources as it deems most appropriate, while leaving other elements of
CAMR implementation to the Federal Plan.
C. Timing of Federal Plan Action
As described in CAMR and summarized in section I.C of this notice,
EPA required States to develop, adopt and submit their State Plans by
November 17, 2006. Proposing a CAMR Federal Plan today is necessary in
order for EPA to promulgate a Federal Plan in accordance with 40 CFR
60.27 for States without timely submitted, approvable plans. EPA
intends to expedite the Federal Plan promulgation to help assure
emission reductions occur expeditiously.
In a separate Federal Register notice entitled ``Notice of Finding
that Certain States Did Not Submit Clean Air Mercury Rule (CAMR) State
Plans for New and Existing Electric Utility Steam Generating Units and
Status of Submission of Such Plans,'' EPA made findings that certain
States did not submit CAMR State Plans by the November 17, 2006
deadline and otherwise provided notice of the status of State Plan
submissions. EPA intends to promulgate a Federal Plan for any State
that fails to timely submit an approvable plan. EPA intends to approve
expeditiously State Plans that meet the CAMR requirements. In order to
meet the requirements of CAA section 111(d), this notice proposes a
Federal Plan for all States covered by CAMR (50 States, District of
Columbia, and Indian country). The proposed Federal Plan requirements
for each State are identical. Final rulemaking on the proposed Federal
Plan may address only one State or may address several States,
depending on how the individual States respond to the provisions of the
final CAMR.
The Agency is proposing this action to provide a Federal backstop
for CAMR in circumstances where not all States submit timely,
approvable State Plans. In no way should the proposed Federal Plan for
CAMR be viewed as a sign of any concern about States ultimately making
the emission reductions required under CAMR. Rather, the Agency intends
the Federal Plan to represent an additional option for achieving the
emission reductions specified in CAMR. States which would otherwise
adopt the model trading
[[Page 77105]]
program in CAMR as their State Plan can accept the Federal Plan and
significantly reduce the State resources needed to establish a program
to implement CAMR.
The Agency proposes to provide States that are subject to these
proposed Federal requirements with the option to submit a State
allocation methodology without submitting a State Plan to meet the
requirements of CAMR. By proposing to accept a State allocation
methodology, the Agency intends to increase the options available for
States to comply with CAMR. As there are no sanctions associated with
the proposed Federal Plan, EPA anticipates that some States may prefer
to avoid spending the time and resources necessary to adopt and submit
a State Plan. Upon approval of any State allocation methodology, EPA
anticipates that the corresponding portions of the CAMR Federal Plan
for that State would be replaced or their application to affected
sources would be modified.
In offering a framework for submission of a State allocation
methodology, the Agency anticipates that some States will wish to
retain control over the allocation of allowances to their EGU sources
even in circumstances where the Federal Plan otherwise governs. EPA
requests comment on the proposed option for States to submit a State
allocation methodology under the Federal Plan trading program. A more
complete discussion of the proposed State allocation methodology
provisions is found in Section III, below.
Although the deadline for States to develop, adopt, and submit
State Plans that meet the requirements of CAMR was November 17, 2006,
EPA remains ready to work with the States to develop fully-approvable
State Plans. The Federal Plan will only be effective in a State where
EPA has found that a State has not timely submitted an approvable State
Plan. In addition, EPA will withdraw the Federal Plan for any affected
State after EPA approves a State Plan that meets the CAMR requirements
in that State.
EPA's goal is to have approvable programs in place that meet the
requirements of CAMR whether they are in the form of a State Plan or a
Federal Plan. By finalizing a Federal Plan, EPA would in no way
preclude a State from developing its own State Plan that either adopts
the Hg model trading rule with any discretionary elements allowed by
CAMR or meets the State's EGU Hg emissions budget through different
measures of the State's choosing. EPA will carefully consider the
timing of the Federal Plan adoption process, and the transition from a
finalized Federal Plan to an approved State Plan, to make sure to
preserve each State's freedom to develop and implement a State Plan. In
this way, EPA will enhance each State's options for complying with the
requirements of CAMR while ensuring that all the Hg emissions
reductions and environmental benefits of CAMR are realized.
D. Federal Plan Control Measures
In contrast to the State Plan process--where selection and
implementation of control measures is the primary responsibility of the
State--in the case of a Federal Plan, it is EPA's responsibility to
select the Hg control measures for each coal-fired EGU and assure
compliance with those measures. (See, 40 CFR 60.27(e).) Thus, the
Federal Plan would be designed by EPA to achieve the same total
Statewide EGU Hg emission budgets as those described in CAMR and
discussed below. The specific emission reductions assigned in the
Federal Plan could be different from what a State might choose. In
selecting the specific Hg emission reductions for the CAMR Federal
Plan, EPA is proposing to adopt as the Federal Plan the CAMR State
model cap-and-trade program rule, modified slightly to allow for
Federal instead of State implementation.
EPA believes it is essential that compliance with the Hg control
strategy be verified. Tracking emissions is the principal mechanism to
ensure compliance with the Hg emissions budget. The Hg emissions
control requirements for coal-fired Utility Units proposed in the CAMR
Federal Plan include requirements that the affected EGU sources
directly report emissions data to EPA that can be used to determine
compliance with the Hg emissions decreases required by the proposed
Federal Plan. The specifics of the Hg cap-and-trade program for the
Federal Plan are discussed below in Section III. The Federal Plan
includes the proposed methodology for allocating Hg allowances that EPA
would use to allocate allowances to units but does not include the
allocations themselves. EPA will provide the allocations for individual
units in later regulatory actions; the allocations will meet the State
Hg budgets that are established in CAMR for coal-fired Utility Units.
E. National Mercury Budget and Compliance Dates
In this action, the Agency is proposing a Federally-administered
program to meet the CAMR Hg emission reduction requirements in
accordance with the caps and timeline under CAMR. This action does not
establish those emission reduction requirements or schedule, which were
established by the CAMR rulemaking. Thus, the Agency is not requesting
comment on the emission reduction requirements or the schedule for
implementing these reductions.
For CAMR, EPA determined that there was authority under CAA section
111(d) for a Hg cap-and-trade program. Thus, EPA interpreted the term
``standard of performance,'' as applied to existing EGU sources, to
include a cap-and-trade program. EPA also determined that a cap-and-
trade program based on Hg control technology available in the relevant
timeframe is the best demonstrated system for reducing Hg emissions
from existing coal-fired Utility Units. CAMR adds Hg to the list of
pollutants covered under 40 CFR part 60, subpart Da, by establishing
emission limits for new sources and emission guidelines for existing
EGU sources.
CAMR established a mechanism by which Hg emissions from new and
existing Hg Budget units are capped at specified, nation-wide levels. A
first phase cap of 38 tons per year becomes effective in 2010, and a
second phase cap of 15 tons per year becomes effective in 2018.
Facilities must demonstrate compliance with the standard by holding one
``allowance'' for each ounce of Hg emitted in any given year.
Allowances are readily transferable among all regulated facilities.
The added benefit of the cap-and-trade approach is that it
dovetails well with the sulfur dioxide (SO2) and nitrogen
oxides (NOX) emission caps under CAIR (see 70 FR 25162, May
12, 2005). CAIR establishes a broadly-applicable cap-and-trade program
that significantly limits SO2 and NOX emissions
from the power sector. The advantage of regulating Hg at the same time
and using the same basic regulatory mechanism as for SO2 and
NOX is that significant Hg emissions reductions, especially
reductions of oxidized Hg, can and will be achieved by the air
pollution controls designed and installed to reduce SO2 and
NOX emissions. Because significant Hg emissions reductions
can be obtained as a ``co-benefit'' of controlling emissions of
SO2 and NOX, the coordinated regulation of Hg,
SO2, and NOX allows Hg reductions to be achieved
in a timely and cost-effective manner.
As discussed in CAMR, a Phase I cap based on ``co-benefits''
fulfills EPA's obligation to set a standard of performance based on the
best demonstrated system of emissions reduction. The Phase I Hg cap is
[[Page 77106]]
supported by current information on the availability of control
technologies, incremental cost-effectiveness of Hg emissions reductions
beyond co-benefits, and analysis of engineering, financial, and other
factors needed to install controls. The Phase I Hg emissions cap of 38
tons reflects the co-benefits level and is established as a fixed cap
in CAMR.
In CAMR, EPA established a Phase II Hg emissions cap based on the
reductions in Hg emissions resulting from the CAIR program together
with reductions that can be reasonably obtained through the use of Hg-
specific controls. This Hg cap of 15 tons is effective in 2018. As
discussed in CAMR, EPA concluded that the 2018 cap is warranted because
Hg-specific air pollution control technologies such as activated carbon
injection (ACI) will be available for general use sufficiently before
2018, thereby allowing for their deployment to comply with the Phase II
cap in 2018. The 15-ton cap in 2018 is also supported by cost
considerations, because the cap level will not have significant impacts
on energy supply and the cost of energy to the consumer.
F. State and Indian Country Emission Budgets
In CAMR, EPA outlined a method for apportioning the nation-wide
budget to coal-fired Utility Units located in individual States and in
Indian country. EPA maintains that the Hg emissions budget provides an
efficient method for achieving necessary reductions in Hg emissions,
while providing substantial flexibility in implementing the program.
The methodology for determining State budgets is described in CAMR (see
70 FR 28606). The 2010 State budgets were revised slightly as a result
of the reconsideration process (see Notice of Final Action on
Reconsideration, 71 FR 33388, June 9, 2006). EPA is not inviting
comment on the CAMR State and Indian country Hg budgets in connection
with this proposed rule.
In CAMR, EPA finalized a formula for determining the Hg budget for
coal-fired Utility Units located in a State or Indian country for 2010
and 2018. Under that formula, the EGU Hg budget for the State or Indian
Country equals the sum of the weighted shares for each existing
affected EGU in the State or Indian country of total baseline heat
input, where a unit's baseline heat input and the total baseline heat
input are adjusted to reflect the ranks of coal combusted by the unit
during the baseline period, to total heat input of all affected units.
As discussed in CAMR, EPA finalized adjustment factors of 1 for
bituminous, 1.25 for subbituminous, and 3 for lignite coals (see also
``Technical Support Document for the Clean Air Mercury Rule Notice of
Final Rulemaking, State, and Indian Country Emissions Budgets,'' EPA,
March 2005; EPA-HQ-OAR-2002-0056-6154).
Each of the 50 States and the District of Columbia covered by the
final CAMR has been assigned a State Hg emissions budget for coal-fired
Utility Units. An EGU Hg emissions budget has also been assigned for
existing coal-fired Utility Units located in Indian country. States
have the flexibility to meet these State budgets by participating in a
trading program or establishing another methodology for Hg emissions
reductions from coal-fired Utility Units, as discussed elsewhere in
this action. States have the ability to require Hg reductions beyond
those required by the State budget determined by EPA. Tribes that
choose to seek and obtain TAS status for that purpose have the same
flexibility in developing an appropriate Tribal Plan. The State EGU Hg
emission budgets are a permanent cap regardless of growth in the
electric sector and, therefore, States have the responsibility of
incorporating new coal-fired units in their EGU Hg emission budgets.
Similarly, the Hg emission budgets for coal-fired Utility Units located
in Indian country act as a permanent cap, and EPA, or a Tribe that has
obtained TAS status and is implementing an approved Tribal Plan, has
responsibility for incorporating new units into the EGU Hg emission
budget.
The final State, Indian country, and District of Columbia EGU Hg
emission budgets are presented in Table II-1 of this preamble. In CAMR
(as revised in the CAMR Notice of Final Action on Reconsideration, 71
FR 33388), EPA established budgets for the 50 States, the District of
Columbia, the Navajo Nation and the Ute Indian Tribe.
In CAMR, for areas of Indian country that do not currently have any
coal-fired electricity generation, EPA noted its intent to address any
future planned construction of coal-fired Utility Units in those areas
on a case-by-case basis, by working with the relevant Tribal government
to regulate the Utility Units through either a Tribal Plan, if an
eligible Tribe chooses to submit one, or a Federal Plan. The Agency
further explained that ``EPA does not believe that there is sufficient
information to design allocation provisions for new generation which
locates in Indian country at this time. Therefore, rather than create a
Federal allowance set-aside for Tribes, the EPA will work with Tribes
and potentially affected States to address concerns regarding the
equity of allowance allocations on a case-by-case basis as the need
arises. The EPA may choose to revisit this issue through a separate
rulemaking in the future.'' (See 70 FR 28606).
In this action, EPA is proposing to address the issue of how new
generation in areas of Indian country without an emissions budget will
be treated under CAMR and the CAMR Federal Plan. Since CAMR was
finalized, EPA has become aware of potential development of new
generation in Indian country, and the need to provide such generation
with certainty related to compliance costs.
After detailed consideration of this issue, EPA proposes to treat
new generation in areas of Indian country without an emissions budget
in the same way it treats new generation in States without emissions
budgets. New units in areas of Indian country without an emissions
budget and participating in the CAMR trading program would not receive
an allowance allocation, though these units, like new units in States
without emissions budgets, would be required to hold allowances equal
to emissions. For the two Tribes that have existing generation and,
thus, an emissions budget, they can provide new sources with allowances
through a new unit set-aside if they choose to seek, and ultimately are
granted, treatment as State (TAS) status for that purpose and then
submit a tribal implementation plan (TIP) which incorporates the CAMR
trading program. EPA does not believe that there is a strong argument
for treating new units locating in areas of Indian country without Hg
emissions budgets differently from new units locating in States without
emissions budgets. Further, EPA analysis suggests that the cost of
allowance purchase will be a very small share of the total annual cost
associated with a new unit, on the order of 1 percent of total
annualized costs in 2010. (See TSD and spreadsheet titled ``Cost
Analysis of Potential New Subbituminous Coal Plant'' available in the
docket.)
EPA is also taking comment on the alternative of creating a set-
aside budget for new unit generation locating in areas of Indian
country that do not have an emissions budget. A potential option is
that EPA could create a 300-pound (lb) annual set-aside budget
(approximately the annual Hg emissions for 10 new 300 MW coal-fired
units with 90 percent Hg control) for new unit generation in such
areas. This would require additional revisions to the CAMR State
budgets. The set-aside budget would be created by reducing each State's
EGU Hg emission budget by about 0.4 percent for years 2012-2017 and by
1.0 percent for 2018 and thereafter, to maintain
[[Page 77107]]
nationwide annual budgets of 38 tons and 15 tons, respectively. Such a
set-aside budget would not be created until 2012, in order to allow
States time to adjust their budgets and planned control strategies.
Considering the lead-time required to develop new coal-fired
generation, a new unit set-aside budget commencing in 2012 would likely
be well-timed to coincide with the earliest that new generation might
come on-line.
EPA would distribute this set-aside budget to new sources based on
a source's emissions from the previous year, consistent with the
approach that is used to determine the distribution of the new source
set-aside discussed in section III.C. If this budget were over-
subscribed for a given year, EPA would distribute the budget on a pro-
rata basis. However, if this budget were undersubscribed for a given
year, EPA would not redistribute the remaining portion of the budget
because of the further changes to State Plans that doing so would
require.
EPA requests comment on the creation of such a budget, the
appropriate size and start date, as well as whether the set-aside
should be available to new generation in States that do not have an Hg
emission budget, in addition to new generation in areas of Indian
country with no Hg emission budget.
As discussed in CAMR, EPA finalized Hg emission budgets of zero
tons for three States (Idaho, Rhode Island, and Vermont) and the
District of Columbia. New coal-fired Utility Units locating in these
areas will, nevertheless, be required to hold allowances equal to their
Hg emissions. As participants in the cap-and-trade program, these
sources could buy Hg allowances and meet their requirements. This is
similar to the situation that new units face under the existing Acid
Rain Program.
Table II-1.--State Annual EGU Hg Emission Budgets
------------------------------------------------------------------------
Budget (tons)
-------------------------------
State 2018 and
2010-2017 thereafter
------------------------------------------------------------------------
Alaska.................................. 0.010 0.004
Alabama................................. 1.289 0.509
Arkansas................................ 0.516 0.204
Arizona................................. 0.454 0.179
California.............................. 0.041 0.016
Colorado................................ 0.706 0.279
Connecticut............................. 0.053 0.021
Delaware................................ 0.072 0.028
District of Columbia.................... 0 0
Florida................................. 1.232 0.487
Georgia................................. 1.227 0.484
Hawaii.................................. 0.024 0.009
Idaho................................... 0 0
Iowa.................................... 0.727 0.287
Illinois................................ 1.594 0.629
Indiana................................. 2.097 0.828
Kansas.................................. 0.723 0.285
Kentucky................................ 1.525 0.602
Louisiana............................... 0.601 0.237
Massachusetts........................... 0.172 0.068
Maryland................................ 0.49 0.193
Maine................................... 0.001 0.001
Michigan................................ 1.303 0.514
Minnesota............................... 0.695 0.274
Missouri................................ 1.393 0.550
Mississippi............................. 0.291 0.115
Montana................................. 0.377 0.149
Navajo Nation Indian Country............ 0.600 0.237
North Carolina.......................... 1.133 0.447
North Dakota............................ 1.564 0.617
Nebraska................................ 0.421 0.166
New Hampshire........................... 0.063 0.025
New Jersey.............................. 0.153 0.060
New Mexico.............................. 0.299 0.118
Nevada.................................. 0.285 0.112
New York................................ 0.393 0.155
Ohio.................................... 2.057 0.812
Oklahoma................................ 0.721 0.285
Oregon.................................. 0.076 0.030
Pennsylvania............................ 1.779 0.702
Rhode Island............................ 0 0
South Carolina.......................... 0.58 0.229
South Dakota............................ 0.072 0.029
Tennessee............................... 0.944 0.373
Texas................................... 4.656 1.838
Utah.................................... 0.506 0.200
Ute Indian Tribe Reservation Indian 0.060 0.024
Country................................
Virginia................................ 0.592 0.234
Vermont................................. 0 0
Washington.............................. 0.198 0.078
[[Page 77108]]
Wisconsin............................... 0.89 0.351
West Virginia........................... 1.394 0.550
Wyoming................................. 0.952 0.376
------------------------------------------------------------------------
III. Federal Hg Cap-and-Trade Program
A. Overall Structure of the Federal Hg Cap-and-Trade Program
In this action, EPA proposes to regulate coal-fired Utility Units
using a market-based, cap-and-trade program with a declining cap. As
discussed in CAMR (70 FR 28617), this type of program is a proven
method for achieving highly cost-effective emissions reductions while
providing sources compliance flexibility and certainty.
In 40 CFR part 62, subpart LLL, EPA proposes a Federal Hg cap-and-
trade program as a means of controlling Hg mass emissions from coal-
fired Utility Units (the proposed rules use the term ``electric
generating unit'' or ``EGU'') in a State for which this Federal Plan is
promulgated. Participation in the Hg Budget Trading Program would be
mandatory for all Utility Units covered by the final Federal Plan
resulting from this proposal. Mercury allowances--each allowance
representing a limited authorization to emit one ounce of Hg--would be
the currency used in the trading program. A total number of Hg
allowances would be allocated to coal-fired Utility Units in a State
equal to the amount of the State's EGU Hg trading program budget under
the Federal Plan. Utility Units participating in either the Federal Hg
cap-and-trade program or the CAMR State Hg cap-and-trade program would
be able to trade Hg allowances with each other, and use, for
compliance, Hg allowances issued under either type of program.
Under 40 CFR part 62, subpart LLL, as proposed, EPA would be
responsible for all aspects of program implementation, with the
exception of permitting. Permitting responsibility will lie with State
and local air permitting authorities with title V permit programs found
by EPA to meet the requirements of title V and its implementing
regulations, or in appropriate circumstances, with tribal authorities
implementing a delegated 40 CFR part 71 permit program. Mercury Budget
sources that currently have title V permits will be required to obtain
an amended permit which includes the Hg Budget Trading Program
requirements. Any Utility Unit that does not currently have a title V
permit will be required to obtain one which includes the necessary Hg
Budget Trading Program requirements. While they must be included in a
Hg Budget source's title V permit, the requirements of the Federal Hg
Budget Trading Program rule are Federally enforceable independent of
that permit.
As explained further in Section II of this preamble, the Agency is
proposing to provide an additional option under which States could
choose to submit a State allocation methodology, rather than a complete
State Plan addressing all elements of the CAMR Hg trading program. In
this way, the State could choose the methodology for allocating Hg
allowances to its EGU sources which it deems most appropriate, while
leaving other elements of CAMR implementation to a Federal Plan.
Under 40 CFR part 62, subpart LLL, as proposed, sources in the
Federal Hg Budget Trading Program would be required to monitor and
report their emissions in accordance with relevant portions of 40 CFR
part 75. Under CAMR, EPA promulgated revisions to 40 CFR part 75 that
establish Hg mass monitoring requirements and provide some flexibility
to regulated sources. Consistent and accurate monitoring of emissions
is necessary for accountability regarding compliance with the
requirement to hold Hg allowances and to ensure that an ounce of Hg
emissions attributed to one source in one State is equivalent to an
ounce attributed to another source in the same or another State.
EPA intends that if States choose to meet their Hg emission
reduction obligations under CAMR by adopting the State Plan model cap-
and-trade rule and participating in the EPA-administered trading
program, the EPA-administered State Plan trading program will be fully
integrated with the Federal Hg trading program that EPA may promulgate
in a final Federal Plan. Integration is possible because CAMR and the
corresponding Federal Plan both seek to achieve the same level of Hg
emission reductions from the same sources (i.e., coal-fired Utility
Units), and the State Hg model trading rule and the Federal Hg trading
rule contain essentially the same provisions.
In particular, EPA believes that, in order to be eligible to
participate in an effective Hg emissions cap and trade program, a
source must meet two principal criteria. The first criterion is that
each source must be able to account accurately and consistently for all
of its emissions to ensure the trading program goal of maintaining
emissions within a cap. Emissions monitoring must be accurate and
consistent among all sources so that each allowance represents the same
amount of emissions. The second criterion for participation in a
trading program is that each source must identify a responsible party
who would be accountable for demonstrating and ensuring compliance with
program requirements. EPA believes that this action--like the State Hg
model trading rule--imposes requirements that meet those criteria. The
Agency also believes that, because this action contains the same
program elements as are in the State Plan model trading program and is
designed to meet the same environmental goals and cap the same sources
at the same levels as that model trading program, it is appropriate to
design a CAMR Federal Plan that is integrated with the CAMR State Plan
trading program.
Under this scenario of an integrated trading program, EGU sources
subject to the Federal Hg trading program under the Federal Plan and
EGU sources in States choosing to participate in the EPA-administered
CAMR State Plan trading program could trade Hg allowances with one
another under common emissions caps across participating States.
Integration of the trading programs reduces the possibility of
inconsistent or conflicting deadlines or requirements, increases the
potential cost savings for sources, and streamlines program
administration. Unnecessary inconsistencies between the two types of
trading programs could hamper sources' ability to plan and achieve the
[[Page 77109]]
needed reductions as cost effectively as possible and could complicate
program administration. In addition the integration of the programs
means that, if a State would submit a State Plan including the EPA-
administered Hg emissions trading program after EPA had established a
Federal Hg trading program under a Federal Plan, disruptions to sources
that would shift from regulation under a Federal Plan to regulation
under a State Plan would be minimized.
1. Road Map of Federal Hg Cap-and-Trade Rule
The following is a brief ``road map'' to the proposed Federal Hg
cap-and-trade program and is provided as a convenience to the reader.
Please refer to the detailed provisions of the proposed rule for
further information.
a. State Participation. States may be granted the authority to
implement Hg allowance allocations through a State allocation
methodology submitted under the Federal Plan. In this submission, a
State could adopt its own methodology or adopt this proposed Federal
allocation methodology and allocate Hg allowances.
State and local agencies would be the permitting authorities for
the majority of Hg Budget sources, with title V permits that would
include, in the Hg-Budget-permit portion, Hg Budget Trading Program
requirements.
b. Allocation of Allowances to Sources. Mercury allowances would be
allocated by the Administrator based on the methodology proposed in
this Federal Plan preamble and described in the proposed regulatory
text, unless a State allocation methodology is approved.
c. Emission Monitoring and Reporting by Sources. Utility Units
would monitor and report their Hg mass emissions using 40 CFR part 75.
Source information management, emissions data reporting, and
allowance trading will be conducted through on-line systems similar to
those currently used for the Acid Rain SO2 and
NOX Budget Trading programs.
d. Compliance and Penalties. For the Federal Hg cap-and-trade
program, any Utility Unit found to have excess emissions would have to
surrender allowances from the next control period equal to three times
the ounces of excess emissions.
B. Sources Affected Under the Federal Hg Cap-and-Trade Rule
As discussed above, EPA is proposing a Federal Hg cap-and-trade
program as a means of controlling Hg emissions from coal-fired Utility
Units in each State and Indian country for which a Federal Plan is
promulgated. For the reasons discussed in CAMR (70 FR 28625) and the
CAMR Notice of Final Action on Reconsideration (71 FR 33388), EPA is
proposing to use the same applicability provisions for the Federal Plan
in 40 CFR part 62, subpart LLL, and the State Plan in 40 CFR part 60,
subpart HHHH.
As discussed in detail below, certain coal-fired units, in a State
or Indian country for which a Federal Plan is promulgated, will be Hg
Budget units (i.e., units subject to the Federal Hg Budget Trading
Program), and any source that includes one or more such units will be
an Hg Budget source, subject to the requirements of 40 CFR part 62,
subpart LLL.
With certain clarifications and exemptions, the provisions of 40
CFR part 62, subpart LLL (and 40 CFR part 60, subpart HHHH), generally
apply to Utility Units (boilers or combustion turbines serving on or
after November 15, 1990 a generator with a nameplate capacity greater
than 25 megawatts electrical (MWe) and producing electricity for sale)
that are coal-fired (i.e., units where any amount of coal or coal-
derived fuel is used at any time). The definition of ``coal-fired'' is
similar to the definition that is used in the Acid Rain Program.
In the CAMR Notice of Final Action on Reconsideration (71 FR
33388), EPA finalized revisions to the applicability provisions in the
CAMR State Plan model trading rule (see Section IV below). The
applicability provisions in this proposed Federal Hg trading program
are identical to the revised applicability provisions for the CAMR
model State trading rule.
First, in the Notice of Final Action on Reconsideration, EPA
clarified the applicability provisions in the State Plan Hg model
trading rule (40 CFR 60.4104) to specifically exclude from the trading
program certain solid waste incineration units (municipal waste
combustors (MWC)) subject to an applicable NSPS, an EPA-approved State
Plan, or certain Federal Plans. In this action, EPA is proposing to
include this same exemption in the Federal Hg trading rule.
Second, in the Notice of Final Action on Reconsideration, EPA
discussed the potential inclusion of certain industrial boilers in both
CAMR and the CAA section 112 Industrial Commercial Institutional Steam
Generating Unit MACT standards (the Boiler MACT, 70 FR 55217, 40 CFR
part 63, subpart DDDDD). EPA addressed this potential overlap in two
ways. First, EPA issued language amending 40 CFR part 63, subpart DDDDD
(see National Emission Standards for Hazardous Air Pollutants for
Industrial, Commercial, and Institutional Boilers and Process Heaters:
Reconsideration of Emissions Averaging Provision and Technical
Corrections) in response to a petition for reconsideration for the
Boiler MACT. The amended language specifically excludes units subject
to CAMR from regulation under the Boiler MACT. Second, EPA revised the
applicability provisions in the State Plan Hg model trading rule (40
CFR 60.4104) to include only stationary, coal-fired boilers or
stationary, coal-fired combustion turbines serving, at any time on or
after November 15, 1990, a generator with a nameplate capacity of more
than 25 MWe producing electricity for sale. This date would be
consistent with the dates used in the Acid Rain Program and CAIR. EPA
is proposing the same language in the applicability provisions of this
Federal Hg trading rule.
Finally, as discussed in the Notice of Final Action on
Reconsideration, EPA made certain other clarifying changes to
applicability provisions in 40 CFR 60.4104 with regard to cogeneration
units in order to ensure that the regulatory text unambiguously
reflects EPA's intent, as expressed in the CAMR preamble (see 70 FR
28612, 28625-26) regarding cogeneration units. EPA is proposing today
to include the same language in the applicability provisions of the
Federal Hg trading rule.
In particular, certain cogeneration units would be exempt from the
proposed Federal Hg cap-and-trade program. Cogeneration units are units
having equipment used to produce electricity and useful thermal energy
for industrial, commercial, heating, or cooling purposes through
sequential use of energy which also meet certain operating and
efficiency standards. The program would have different applicability
provisions for non-cogeneration units and cogeneration units. Any
cogeneration unit, serving (since the later of November 15, 1990 or the
start-up of the unit), a generator with a nameplate capacity of greater
than 25 MWe supplying more than \1/3\ of its potential electric output
capacity and more than 219,000 MW-hr annually to any utility power
distribution system for sale, would be subject to the requirements of
the proposed Federal CAMR trading rule. Otherwise, the unit would
qualify for an exemption under the proposed Federal rule.
In summary, EPA is proposing that, except for a unit that qualifies
as a cogeneration unit and meets certain other requirements or an MWC
that is subject to an applicable NSPS, an EPA-
[[Page 77110]]
approved State Plan, or certain Federal Plans, a Hg Budget unit is any
stationary, coal-fired boiler or stationary, coal-fired combustion
turbine serving at any time, since the later of November 15, 1990 or
the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe producing electricity for sale.
C. Allocation of Emission Allowances
For States that choose under CAMR to participate in the EPA-
administered State Plan Hg cap-and-trade program, EPA provided an
example methodology for allocating Hg allowances to individual units in
the Hg model trading rule. For this proposed Federal Plan, the Agency
is proposing to use an Hg allocation methodology that is the same as
the example methodology in the model trading rule. Within each affected
State, the Agency would allocate to existing and new units a total
amount of allowances that equals the tonnage in the State's Hg budget.
The Agency's proposed timeline for allocating and recording Hg
allowance allocations and proposed Hg allowance allocation methodology
are described below.
1. Timing for Initial Allocation Distributions
The Agency proposes that, for all but the first 3 years of Hg
allocations, EPA will record unit-by-unit allocations of allowances for
existing units for a given year in the source compliance accounts no
less than 3 years before January 1 of that year (i.e., the first year
for which the allowance can be used to meet the allowance-holding
requirement). This approach provides sources sufficient lead time to
facilitate their participation in the allowance market (e.g., by buying
or selling allowances or allowance futures). For the first set of Hg
allocations under the Federal Plan (covering control periods 2010-
2014), the Agency proposes to record unit-by-unit allocations in source
accounts as follows: by December 1, 2007, for allocations for 2010; by
December 1, 2008, for allocations for 2011; by December 1, 2009, for
allocations for 2012-2013; and by December 1, 2010 for allocations for
2014.
As explained in CAMR, States had until November 17, 2006 to submit
State Plans to the Agency, at which time a State that chooses to
participate in the EPA-administered Hg cap-and-trade program would
submit its Hg trading rule (including Hg allocation methodology) and
first set of allocations. As mentioned above, the Agency is proposing
to provide an additional option under which a State could choose to
submit only a State allocation methodology, rather than a complete Hg
trading rule. In this way, the State could choose to allocate Hg
allowances to its EGU sources in the manner it deems most appropriate,
while leaving other elements of the trading program to be governed by
the Federal Plan. Under this option, the Agency proposes that States
would have until May 30, 2007 to submit the State allocation
methodology. The Agency intends to work with the States to assure
(consistent with timing requirements for allowance recordation) that,
for any State that chooses to allocate Hg allocations (either under an
approved State Plan or an approved State allocation methodology), the
State's allocations, rather than EPA-determined Federal Plan
allocations, would be recorded in EGU source accounts.
As discussed in CAMR, allowance allocation decisions in a cap-and-
trade program raise primarily distributional issues, as economic forces
are expected to result in economically least-cost and environmentally
similar outcomes regardless of the manner in which allowances are
initially distributed. Consequently, in a State allocation methodology
submitted in the context of a Federal Plan (like in a State Plan under
CAMR), States are given latitude in developing their Hg allocation
approach. Specifically, States will have flexibility concerning whether
allowances are distributed to sources for free and concerning the
frequency of Hg allocations, the basis for distributing the Hg
allowances, and the use and size of Hg allowance set-asides. The final
CAMR preamble provides a further discussion of Hg allocation
approaches. (See 70 FR 28627).
For the reasons discussed in Section II.C above, EPA intends to
finalize a CAMR Federal Plan. By finalizing a Federal Plan, the EPA
would in no way preclude a State from developing and submitting for
approval its own State Plan for Utility Units that either adopts the Hg
model trading rule (with the flexibility allowed by CAMR concerning
allocation of Hg allowances) or meets the CAMR Hg emission reduction
requirements for Utility Units through different measures of the
State's choosing.
The Agency's preference is for States participating in the EPA-
administered cap-and-trade program to make decisions about Hg
allocations for their EGU sources. EPA intends to determine Federal
Plan unit-by-unit Hg allocations (with opportunity for public
objections). However, we intend to only record those EPA-determined
allocations in allowance accounts for EGU sources located in a State
without a timely, approved CAMR State Plan or a timely, approved State
allocation methodology.
In considering when to record Federal Plan Hg allocations in EGU
source accounts, the Agency seeks to balance the following two goals:
(1) To provide certainty to sources regarding their CAMR Hg allocations
and time for EGU sources to make compliance decisions, and (2) to
provide States choosing to allocate CAMR Hg allowances with time to do
so and EPA with time to approve State Plans that include State-
determined allocations. Taking into consideration the submission
deadlines for a State Plan or a State allocation methodology, the
amount of time needed by the Agency to approve a State Plan or State
allocation methodology, and the amount of time remaining before the
initial CAMR control period, EPA developed a proposed schedule
(summarized above and in Table III-1) for recording Hg allocations in
source accounts for the Federal Hg trading program. EPA seeks comment
on this proposed schedule.
The Agency will endeavor to work with States to ensure that we can
approve State Plans or State allocation methodologies and timely record
State Hg allocations in EGU source accounts. EPA intends to act in such
a way that, once EPA-determined Federal Plan Hg allocations are
recorded for a particular control period (which would only occur in the
absence of a timely, approved State Plan or a timely, approved State
allocation methodology), we would not approve overlapping State
allocations for that same control period.\5\ Rather, EPA will work with
the States to approve State Plans, or State allocation methodologies,
providing State Hg allocations for control periods that begin upon the
expiration of the last control period for which EPA-determined
allocations have been recorded in EGU source accounts. It would be
highly disruptive to the allowance market if EPA-determined Hg
allowances that had already been recorded and then traded in the market
could subsequently be rendered invalid due to approval of overlapping
State-determined allocations for the same control period.
---------------------------------------------------------------------------
\5\ As discussed in CAMR, each State has flexibility in the
State Plan to allocate its allowances however it chooses (within its
State budget) so long as certain timing requirements are met. A
State would have the same flexibility in developing a State
allocation methodology in the context of the Federal Plan.
---------------------------------------------------------------------------
The discussion in this section is focused on the timing for
recordation of EPA-determined Hg allocations in coordination with
approval of State Plans or State allocation methodologies
[[Page 77111]]
and recordation of State allocations, assuming States choose to
participate in the EPA-administered CAMR trading program. The Agency
would also carefully consider the timing of a transition from Federal-
to State-implemented programs for any State choosing to use a method
other than the EPA-administered State Plan model trading program to
meet CAMR obligations.
As discussed further below, EPA intends to record EPA-determined
Federal Plan Hg allocations for 2010 and 2011 one year at a time. In
this manner, even if a State does not have an approved State Plan in
time for the Agency to record State allocations for the first or second
control period, it would be possible to record State allocations for
subsequent control periods. The Agency strongly urges States to submit
State Plans or State allocation methodologies to the Agency in a timely
manner. We intend to work with States and ensure that there will not be
overlapping Hg allocations for any control period.
The State Plan Hg model trading rule, revised somewhat in the
Notice of Final Action on Reconsideration (71 FR 33388), and 40 CFR
60.24(h), require States to submit their State Plans by November 17,
2006. For a State that chooses to participate in the EPA-administered
Hg model trading program, this State Plan submittal would be required
to comprise a full trading program including the State's Hg allocation
methodology. The EPA anticipates that it may require about 6 months to
approve a State Plan submission.
As discussed above, the Agency is proposing that States may choose
to submit only a State allocation methodology, which would allocate Hg
allowances to individual Utility Units in the State in the context of
the Federal Plan. In this way, a State could choose to allocate Hg
allowances to its Utility Unit sources in the manner it deems most
appropriate while letting the Federal Plan control all other aspects of
the trading program. Through submission of a State allocation
methodology, a State can also ensure that its Hg allocations will apply
even in circumstances where its State Plan is still undergoing EPA
review. The Agency proposes that States would have until May 30, 2007
to submit their State allocation methodologies. The EPA proposes to
allow States to submit State allocation methodologies later than State
Plans because we anticipate that we will be able to complete the
approval process more quickly for State allocation methodologies due to
their narrower scope. The Agency proposes that the State would have
until October 31, 2007 to submit the first set of Hg allocations
pursuant to an approved State allocation methodology submission.
Assuming that States submit State allocation methodologies by the
May 2007 deadline and that EPA can approve these submissions in about 6
months and assuming that some additional time may be required for
coordination between States and EPA before State allocations can be
recorded in EGU source accounts, it is reasonable to assume that EPA
will be able to record such allocations by December 1, 2007. Therefore,
EPA proposes to record Hg allocations in EGU source accounts for the
2010 control period by December 1, 2007. If a State's timely Hg
allocations are approved, then the Agency would record State Hg
allocations for the 2010 control period. However, for any State for
which a State Plan or State allocation methodology is not approved by
December 1, 2007, the EPA would record EPA-determined Hg allocations
for 2010. Recording Hg allocations by December 1, 2007 for the 2010
control period would provide affected EGU sources with certainty of
their allocations just over 2 years in advance of the beginning of the
control period.
The Agency proposes to record EPA-determined Hg allocations in
source accounts 1 year at a time for the 2010 and 2011 control periods
in order to provide flexibility to States. If EPA records EPA-
determined allocations for the 2010 control period and subsequently
approves a State's timely State Plan or timely State allocation
methodology, the Agency would record the State's allocations for future
years. The Agency does not intend to approve State Hg allocations for
any control period that would overlap with EPA-determined allocations
already recorded in source accounts.
EPA proposes to record EPA-determined Hg allocations in source
accounts by December 1, 2008 for the 2011 control period. If a State's
Hg allocations are approved by then, the Agency may record State
allocations for the 2011 control period. However, for any State for
which a State Plan or State allocation methodology is not approved by
December 1, 2008, EPA would record EPA-determined Hg allocations for
2011. Therefore, if a State obtained State Plan or State allocation
methodology approval after December 1, 2007 but before December 1,
2008, the State's Hg allocations may be recorded in source accounts for
the 2011 control period.
The Agency proposes to record Hg allocations in source accounts by
December 1, 2009 for the 2012 and 2013 control periods. Therefore, if a
State obtained State Plan or State allocation methodology approval
after December 1, 2008 but before December 1, 2009, the State's Hg
allocations may be recorded in source accounts for the 2012 and 2013
control periods. However, for any State for which a State Plan or State
allocation methodology is not approved by December 1, 2009, the EPA
would record EPA-determined Hg allocations for 2012 and 2013.
Beginning in 2010 and each year thereafter, EPA proposes to record
EPA-determined Hg allocations for the Federal Hg trading program in
source accounts by December 1 for the control period in the fourth year
after the recordation year, thereby providing allowances about 3 years
in advance for sources to plan their compliance strategies. For
example, EPA would record allocations for the 2014 control period by
December 1, 2010.
Table III-1, below, summarizes the Agency's proposed timing for
recording Hg allocations in EGU source accounts for the Federal Hg
trading program. The table shows the timing through the 2016 control
period. Timing for subsequent control periods would follow the same
pattern as is shown for 2013-2016 (i.e., allocations would be recorded
by 3 years in advance of the control period).
Table III-1.--Proposed Recordation Deadlines for Hg Allocations for the Federal Hg Trading Program \6\
----------------------------------------------------------------------------------------------------------------
Deadline by which Hg
allocations are recorded for
CAMR control period Federal Hg trading program (EPA- Time between recordation date and
determined allocations or State- beginning of control period
determined allocations)
----------------------------------------------------------------------------------------------------------------
2010................................... December 1, 2007............... About 2 years.
2011................................... December 1, 2008............... About 2 years.
2012................................... December 1, 2009............... About 2 years.
2013................................... December 1, 2009............... About 3 years.
[[Page 77112]]
2014................................... December 1, 2010............... About 3 years.
2015................................... December 1, 2011............... About 3 years.
2016................................... December 1, 2012............... About 3 years.
----------------------------------------------------------------------------------------------------------------
The Agency \6\ intends to publish its determination of Hg
allocations for 2010-2014 in a single NODA with opportunity for
submission of objections to the determination. Starting in 2011, the
Agency would publish its determination of Hg allocations with
opportunity for submission of objections prior to July 31 of each year
for the control period 4 years from the year of publication. For
example, we would publish EPA-determined Hg allocations for the 2015
control period by July 31, 2011.
---------------------------------------------------------------------------
\6\ The Agency does not intend to wait until December 1, 2007 to
record State Hg allocations for the 2010 control period but, rather,
would record approved State Hg allocations as soon as feasible. EPA
proposes that we would not record EPA-determined Hg allocations for
any State until December 1, 2007 for the 2010 control period in
order to provide the opportunity for State allocations to be
submitted and approved. The Agency proposes the same process for
future years as well (e.g., we would record State allocations for
the 2011 control period as soon as is feasible, but would wait until
December 1, 2008 to record EPA-determined allocations for 2011 in
order to provide opportunity for States to allocate).
---------------------------------------------------------------------------
For States choosing to submit a State Plan for CAMR, the Agency
suggests they could consider designating Hg allocation provisions as
being submitted both as part of a State Plan and as a State allocation
methodology submission in the context of the Federal Plan. Because the
Agency anticipates that we would be able to approve State allocation
methodologies more quickly than State Plans, a State could, by
designating its Hg allocation provisions as a State allocation
methodology (as well as being part of a State Plan), potentially allow
for the allocation provisions to be approved more quickly. This might
have benefit, for example, in a situation in which it was not feasible
to approve a State's State Plan before December 1, 2007. If the Hg
allocation provisions could be approved by December 1, 2007, then the
State's Hg allocations may be recorded in source accounts in the
context of the Federal Plan. Until the State Plan was subsequently
approved, the other elements of the trading program would be controlled
by the Federal Plan. Provisions for withdrawal of the Federal Plan for
a State are discussed elsewhere in this preamble.
2. Hg Allowance Allocation Methodology
In this action, the Agency is proposing its Hg allocation
methodology for the Federal Hg cap and trade program. In CAMR, EPA
included an example allocation methodology for States (offered for
informational guidance only). This methodology distributes allocations
to existing coal-fired Utility Units based on historic baseline heat
input and reflects adjustments based on coal type. Allocations are
calculated annually to take into account new units on a modified-output
basis, where output would be converted into heat input using specified
conversion factors. This methodology also utilizes a new unit set-aside
for new coal-fired Utility Units that have not yet established baseline
data to be used for updating or are otherwise not yet included in the
updating. In this action, for the reasons discussed in CAMR (70 FR
28627), EPA is proposing the same methodology for the Federal Plan.
For existing units, the proposed Hg allocation methodology uses
input-based allocations, adjusting baseline heat input for each year of
data by factors based on coal type, as discussed below. As in the
example allocation methodology in the CAMR model rule, for existing
units, the Agency proposes to calculate baseline heat input as the
average of the 3 highest amounts of a unit's adjusted heat input for 5
years (2000-2004). EPA believes that this approach provides baseline
heat input data that reasonably represents normal operating conditions.
Relevant data for these years is currently available. EPA also asks for
comment on two modifications to this approach: (1) Using heat input
based on 3 or 4 years of data rather than 5 years; or (2) using heat
input data from 2001 through 2005 rather than 2000 through 2004.
For new units that have established 5 years of baseline data, EPA
proposes that allocations will be based on generation using a modified
output approach (described below) to convert output to heat input, and
allocations to existing units would be updated to take into account new
generation, because these new units would receive allocations from the
pool of allowances shared with existing sources. New units that have
not yet established baseline data or that are otherwise not yet
included in the updating would receive allowances from a new unit set-
aside.
Under the proposed method, allocations are made from the given
State's EGU Hg budget covered by a Federal Plan for the first five
control periods (2010 through 2014) of the Federal Hg cap-and-trade
program for existing EGU sources on the basis of historic baseline heat
input. Consistent with CAMR, EPA is proposing January 1, 2001 as the
cut-off on-line date for considering Utility Units as existing units,
so that there are at least 5 years of operating data, i.e., data for
2000 through 2004 (the Agency also seeks comment on, if data for 2001
through 2005 were used instead, the use of January 1, 2002 as the cut-
off on-line date). The allowances for 2015 and later will be determined
from the State's EGU Hg budget annually, 4 years in advance, taking
into account output data from new units with established baselines
(modified by the specified conversion factors to yield heat input
numbers). As new coal-fired Utility Units enter into service and
establish baselines, they are allocated Hg allowances in proportion to
their share of the total calculated heat input (which is existing
units' adjusted heat input plus new units' modified output). Once a
baseline heat input is established for a new or existing EGU, this
baseline heat input does not change. Allowances allocated to existing
Utility Units slowly decline as their share of total calculated heat
input decreases with the entry of new Utility Units.
New coal-fired Utility Units that have entered service in States or
areas of Indian country that have an Hg emissions budget, but have not
yet started receiving Hg allowances through the update, would receive
allowances each year after the first year of commercial operation from
a new unit set-aside. Consistent with CAMR, the new unit set-aside
would be equal to 5 percent of a State's Hg emission budget for the
years 2010-2014 and 3 percent of a State's Hg emission budget for the
subsequent years. New Utility Units would begin receiving Hg allowances
from the set-aside for the control period immediately following the
control period in which the new Utility Unit commences commercial
operation, based on the Utility Unit's Hg emissions
[[Page 77113]]
from the preceding control period (a new Utility Unit would not be
allocated allowances for the control period in which it commences
operation). For instance, a source might be required to hold Hg
allowances during its start-up year, but would not receive an
allocation for that year. Under the proposed CAMR Federal Plan, EPA
would allocate Hg allowances from the set-aside to all new Utility
Units in any given year as a group. If there are more Hg allowances
requested than in the set-aside, allowances would be distributed on a
pro-rata basis. Allowance allocations for a given new Utility Unit in
following years will continue to be based on the prior year's Hg
emissions until the new Utility Unit establishes a baseline, is treated
as an existing Utility Unit, and is allocated Hg allowances through the
updating process.
Under the proposed Federal Plan, after 5 years of operation, a new
EGU would have an adequate operating baseline of output data to be
incorporated into the calculations for Hg allocations to all affected
Utility Units. The average of the highest 3 years from these 5 years
would be converted to a modified output value that would be used as the
unit's baseline heat input for determining the new Utility Unit's Hg
allowance allocation. The new unit's modified output would be
calculated by multiplying its gross output (expressed in kWh) by a heat
rate conversion factor of 7,900 British thermal units per kilowatt-hour
(Btu/kWh). The 7,900 Btu/kWh value for the conversion factor is an
average of heat-rates for new pulverized coal plants and new integrated
gasification combined cycle (IGCC) coal plants (based upon assumptions
in the Energy Information Administration's (EIA's) Annual Energy
Outlook (AEO) 2004). (See EIA, ``Annual Energy Outlook 2004, with
Projections to 2025,'' January 2004 and http://www.eia.doe.gov/oiaf/archive/aeo04/assumption/tbl38.html.) As discussed in CAMR, a single
conversion rate would create consistent and level incentives for
efficient generation, rather than favoring new Utility Units with
higher heat rates.
New units would update their heat input numbers only once--for the
initial 5-year baseline period after they start operating. As in the
CAMR State Plan example methodology, existing units as a group would
not update their heat input. This eliminates the potential for a
generation subsidy because current or future operating behavior would
not impact the units' allocations. Retired Utility Units would continue
to receive Hg allowances indefinitely, thereby creating an incentive to
retire less efficient Utility Units instead of continuing to operate
them in order to maintain the Hg allowance allocations.
a. Adjustments to Heat Input Data by Coal Adjustment Factors. For
the reasons discussed in CAMR, EPA is proposing the use of heat input
adjustment factors, differentiated by coal type, for the Hg allocation
process. Consistent with the methodology used to establish the State Hg
budgets in CAMR, EPA is proposing that these adjustment factors
primarily reflect the relative abilities of bituminous, subbituminous,
and lignite coals to be controlled for Hg through the use of
NOX and SO2 controls. Consistent with CAMR, EPA
is proposing to use the coal adjustment factors of 1.0 for bituminous
coals, 1.25 for subbituminous coals, and 3.0 for lignite coals for
adjusting baseline heat input.
During the CAMR reconsideration process, EPA performed an analysis
comparing the allocation approach of the model rule with allocations
based on pure (unadjusted) heat input (see 71 FR 33388). In comparing
these two allocation approaches, EPA used the same methodology that was
used to compare EPA's chosen allocations approach for NOX
and SO2 with alternative approaches for the CAIR Notice of
Final Action on Reconsideration (see 70 FR 25328). This analysis
compares the extent to which State budgets reflect projected emissions
under CAIR as well as under CAIR and CAMR.
EPA followed the approach presented in the CAIR Statewide
NOX Budgets Calculations technical support document (TSD)
(http://www.epa.gov/cair/pdfs/0053-2228.pdf) which states ``To
quantitatively evaluate whether the fuel factor approach is providing
States with annual NOX budgets that more closely reflected
their projected emissions, EPA calculated the arithmetic mean of the
(absolute) difference between a State's coverage ratio and 1.0 (i.e.,
the value representing a State's projected emissions matching the
State's CAIR NOX budget). In other words, EPA calculated how
far off the State's coverage ratio was from 1.0, and then averaged
these values for each approach.'' Under this approach, the closer this
mean value is to zero, the more the allowance allocation approach
minimizes disparities between State budgets and emissions.
For Hg, EPA compared the State budgets to projected emissions for
CAIR, which is the appropriate baseline for evaluating the CAMR State
budgets (rather than the 1999 ICR data), as well as projected emissions
under CAMR. Using projected CAIR emissions for 2010, the resulting
average absolute differences were 0.57 for the coal-adjustment factor
approach under CAMR, and 0.63 for the pure heat input approach. Using
projected CAMR emissions for 2010, the resulting average absolute
differences were 0.59 for the coal-adjustment approach under CAMR and
0.68 for the pure heat input approach. Likewise, for 2020, using
projected CAIR emissions, the resulting average absolute differences
were 0.26 for the coal-adjustment approach under CAMR and 0.30 for the
pure heat input approach. Using projected CAMR emissions for 2020, the
resulting average absolute differences were 0.32 for the coal-
adjustment approach, and 0.36 for the pure heat input approach.
This analysis suggests that while the two allocation methods yield
results that are similar, the adjusted heat input approach used by EPA
in the final CAMR minimizes the discrepancies between State budgets and
State emissions more effectively than a pure heat input approach. This
analysis is explained in the TSD and spreadsheet titled ``CAMR Hg
Allowance Allocation Approach Analysis,'' available in the docket.
EPA recognizes that units may have been blending coals or may have
switched coals during the baseline period. For this reason, EPA is
proposing to adjust baseline heat input data separately for each year
in order to reflect the coal burned during that year. If a unit was
blending coal during any year, a weighted average coal adjustment
factor would be used. This approach is consistent with the example
allocation approach included in the CAMR model rule.
In CAMR, EPA adjusted coal type for the calculation of State
budgets using coal use data from the 1999 ICR. EPA does not routinely
collect coal type and use data, and, therefore, proposes to adjust
baseline heat input data using EIA plant-level data for the years that
comprise the baseline. Because the EIA data are reported at the plant
level, EPA proposes to apply the same coal-adjustment factor to all
affected units at a given plant.
EPA is not proposing adjustments by coal type with the modified
output approach because we do not want the allocation process to favor
the use of any particular rank of coal for new coal units. In other
words, EPA does not want to provide an incentive for new units to burn
a certain type of coal in order to increase the number of allowances
they receive.
b. New Cogeneration Units. For new cogeneration Utility Units,
their shares of the Hg allowances would be
[[Page 77114]]
calculated by converting the available thermal output (Btu) of useable
steam from a boiler to an equivalent heat input by dividing the total
thermal output (Btu) by a general boiler/heat exchanger efficiency of
80 percent. For new cogeneration units that are combustion turbines,
electrical output would be converted to heat input, the heat energy of
steam from the heat recovery steam generator would be converted to heat
input, and the units' shares of the Hg allowances would be based on the
sum of these heat inputs. Steam output, like electrical output, is a
useable form of energy that can be utilized to power other processes.
Because it would be nearly impossible to adequately define the
efficiency in converting steam energy into the final product for all of
the various processes, this approach focuses on the efficiency of a
cogeneration unit in capturing energy in the form of steam from the
fuel input.
c. Sources of Data for Hg Allocations. The Agency proposes for the
Federal Plan Hg allocations to use heat input and fuel type data
reported to EPA's Electronic Data Reporting (EDR) system, where
available, and to use best available heat input and fuel type data
(e.g., data from the EIA) where EDR data are not available.
D. Allowance Banking
EPA proposes to include banking as a feature in the Federal Hg
Budget Trading Program for the reasons set forth in CAMR. Proposed 40
CFR part 62, subpart LLL, sets forth the same provisions for banking
and the management of banked allowances as specified in 40 CFR part 60,
subpart HHHH. In accordance with these provisions, Hg allowances held,
and not used for compliance in the year for which they are issued, may
be banked for future use.
Banking is the retention of unused allowances from one calendar
year for use in a later calendar year. Banking allows sources to make
reductions beyond required levels and ``bank'' the unused allowances
for use later. Generally, banking has several advantages. First,
banking results in early reductions as companies over-control their
units' emissions; it is very unlikely that significant levels of early
reductions would occur without banking. Second, banked allowances can
be used at any time, so they provide flexibility for companies to
respond to growth and changing marketplace conditions over time as well
as any unforeseen Hg control technology difficulties. Although banking
can result in emissions below the cap on allowances allocated in early
years of the program and emissions above the cap level in the later
years of the compliance period, the permanency of the cap in each phase
of the program ensures that banking does not result in an increase in
cumulative emissions. This is an important trade-off for getting early
reductions.
Therefore, like in subpart HHHH (the State Plan model cap-and-trade
rule), EPA is proposing that banking would be allowed without
restriction after the start of the Federal Hg cap-and-trade program in
2010.
E. Source-Level Emissions Monitoring and Reporting Requirements
CAMR added subpart I to 40 CFR part 75. (Although EPA is requesting
comment on the monitoring, reporting, and recordkeeping requirements in
the proposed Federal trading rule, EPA is not requesting comments on 40
CFR part 75, which is described here only for the convenience of the
reader.) 40 CFR part 75, subpart I, specifies the basic emission
monitoring, reporting, and recordkeeping requirements necessary to
administer an Hg trading program for new and existing Hg Budget units.
CAMR also revised the regulatory language at several places in 40 CFR
parts 72 and 75 to include specific Hg monitoring definitions and
provisions, in support of 40 CFR part 75, subpart I. Mercury Budget
units would be required to comply with these Hg monitoring provisions
as part of a Federal Hg cap-and-trade program. The changes to 40 CFR
part 75 are discussed in greater detail in CAMR (70 FR 28633).
Monitoring and reporting of an affected source's emissions are
integral parts of any cap-and-trade program. Consistent and accurate
measurement of Hg emissions ensures that each Hg allowance actually
represents one ounce of emissions and that one ounce of reported
emissions from one source is equivalent to one ounce of reported
emissions from another source. This establishes the integrity of each
allowance and instills confidence in the market mechanisms that are
designed to provide sources with flexibility in achieving compliance.
In addition, those flexibilities result in substantial cost savings to
the industry and to the public consumer of electricity.
Given the variability in the unit type, manner of operation, and
fuel mix among coal-fired Utility Units, EPA believes that Hg emissions
must generally be monitored continuously in order to ensure the
precision, reliability, accuracy, and timeliness of Hg emissions data
necessary to support the cap-and-trade program. For application in both
the Federal and State trading programs, CAMR allows two methodologies
for continuously monitoring Hg emissions: (1) Hg continuous emission
monitors (CEMS); and (2) sorbent trap monitoring systems. EPA believes
it is reasonable to expect that both technologies will be well-
developed and commercially available by the time CAMR monitoring
requirements take effect in 2009.
As provided in CAMR, for affected sources with Hg emissions at or
below a specified threshold value, 40 CFR 75.81(b) provides additional
regulatory flexibility by allowing default Hg concentrations obtained
from periodic Hg emission testing to be used to quantify Hg mass
emissions, instead of continuously monitoring the Hg concentration. The
use of this low mass emitter option is restricted to sources that emit
no more than 29 lb (464 ounces) of Hg per year. The rationale for this
threshold is provided in CAMR (70 FR 28633-28635).
The amendments to 40 CFR part 75 set forth the specific monitoring
and reporting requirements for Hg mass emissions necessary for a cap-
and-trade program. The provisions of 40 CFR part 75 are used in both
the Acid Rain and the NOX Budget Trading programs, and most
sources affected by CAMR are already meeting the requirements of 40 CFR
part 75 to monitor SO2 and/or NOX for one or both
of those programs.
In order to ensure program integrity, the proposed Federal trading
rule requires year-round 40 CFR part 75 monitoring and reporting for Hg
emissions for all Hg Budget units. Deadlines for monitor certification
and other details are specified in the proposed Federal trading rule.
EPA believes that if these provisions are implemented, emissions will
be accurately and consistently monitored and reported from unit-to-unit
and from State-to-State, ensuring the overall integrity of the Hg
trading program.
As is required for SO2 and NOX emissions data
in the Acid Rain Program and the NOX Budget Trading Program,
Hg emissions data will be provided to EPA on a quarterly basis in a
format specified by the Agency and submitted to EPA electronically
using EPA-provided software. We found this centralized reporting
requirement necessary to ensure consistent review, checking, and
posting of the emissions and monitoring data from all affected sources,
which contributes to the integrity and efficiency of the trading
program.
Finally, consistent with the current requirements in 40 CFR part 75
for the Acid Rain Program and the NOX Budget
[[Page 77115]]
Trading Program, CAMR allows sources to petition for an alternative to
any of the specified monitoring, reporting, or recordkeeping
requirements in the final rule. This provision also provides sources
with the flexibility to petition to use an alternative monitoring
system under 40 CFR part 75, subpart E, as long as the requirements of
40 CFR 75.66 are met.
F. Compliance and Penalties
Penalty provisions for excess emissions under the CAMR State model
trading rule are described in CAMR (70 FR 28624). The Agency intends
the penalty provisions for excess emissions in the Federal Plan trading
rule to be identical to the provisions in CAMR. Under CAMR, for the Hg
cap-and-trade program, any source found to have excess emissions must
surrender allowances from the next control period equal to three times
the excess emissions. This includes a one-for-one offset of, and an
additional two-for-one surrender for, each ounce of excess emissions.
G. Elements of the Federal Hg Trading Program That Differ From the
State Model Hg Trading Program
EPA proposes to make the Federal and State Hg Budget Trading
Programs as similar as possible. Although EPA has modeled proposed 40
CFR part 62, subpart LLL, largely after 40 CFR part 60, subpart HHHH,
finalized under CAMR, EPA also proposes some revisions to 40 CFR part
60, subpart HHHH, that would integrate the two trading programs and
would generally also be reflected in proposed 40 CFR part 62, subpart
LLL. EPA notes that discussion of the evolution of the Hg Budget
Trading Program is set forth in the SNPR at 69 FR 12403 and in CAMR at
70 FR 28624. The following provides a discussion of the sections in 40
CFR part 62, subpart LLL, that incorporate certain differences from the
corresponding sections in subpart 40 CFR part 60, HHHH, to provide for
Federal implementation of the Hg Budget Trading Program.
The general provisions explain that proposed 40 CFR part 62,
subpart LLL, sets forth the provisions for the Federal Hg Budget
Trading Program. For 40 CFR part 62, subpart LLL, EPA is proposing to
use essentially the same definitions as those for 40 CFR part 60,
subpart HHHH, revised as proposed in this action.
With regard to the Hg allowance allocations under 40 CFR part 62,
subpart LLL, these provisions are the same as the example allocation
methodology provisions in 40 CFR part 60, subpart HHHH, except that the
Administrator, rather than the State permitting authority, would
allocate Hg allowances under the Federal Hg Budget Trading Program.
This reflects the fact that the Federal Hg Budget Trading Program would
be Federally implemented, rather than implemented by the State as under
CAMR. A detailed discussion of the allocation of emission allowances
under the Federal Plan is provided in Section III.C, above.
40 CFR part 62, subpart LLL, also addresses monitoring and
reporting requirements including, among other things, general
requirements, initial certification and recertification procedures, out
of control periods, notifications, recordkeeping and reporting, and
petitions. These provisions are essentially the same as the monitoring-
related provisions of 40 CFR part 60, subpart HHHH. The differences
between the provisions reflect the fact that administration of the
monitoring requirements is overseen by the Administrator, rather than
by the Administrator and the permitting authority as in the State Plan
Hg model trading program. As a result, for example, monitoring
certification applications are submitted to the appropriate EPA
Regional Office and the Administrator, not the permitting authority,
will act on the applications. Further, the Administrator handles all
audit decertifications and all petitions for alternatives to the
monitoring requirements.
EPA is proposing these monitoring provisions under 40 CFR part 62,
subpart LLL, for the reasons set forth both in CAMR and in order to
minimize differences between the Federal and State Hg Budget Trading
Programs. In particular, for the reasons set forth in CAMR, EPA
proposes that Hg budget units be required to meet the monitoring,
reporting, and recordkeeping requirements for Hg monitoring in 40 CFR
part 75, subpart I (70 FR 28633).
IV. Proposed Revisions of the CAMR State Model Cap-and-Trade Program
Rule
EPA is proposing several revisions of the CAMR State model cap-and-
trade program. Some of the proposed revisions are necessary to
integrate the State model Hg trading program and the proposed Federal
Hg trading program, while other proposed revisions reflect needed
technical and clarifying changes and are consistent with the analogous
provisions of the proposed Federal Hg trading program.
In particular, several of the definitions of terms are proposed to
be revised. For example, the definitions of ``Hg designated
representative'' and ``alternate Hg designated representative'' would
be modified to require that the respective individuals designated for
these positions be the same individuals as designated, for a given
source, as the designated representative and alternate designated
representative under all applicable CAIR trading programs. (In order to
implement this change, new definitions for ``CAIR NOX
source'', ``CAIR NOX Ozone Season source'', and CAIR
SO2 source'' would be added.) This would greatly simplify
the administration of the allowance tracking systems for the trading
programs and obviate the need for the requirement (which would be
eliminated from the recordkeeping and reporting provisions) that
quarterly emissions reports, which include emissions data for all
trading programs applicable to the unit involved, be signed by more
than one individual.
As a further example, certain new definitions would be added
(``municipal waste,'' ``replacement,'' and ``solid waste incineration
unit'') and certain definitions would be modified (``cogeneration
unit,'' ``commence commercial operation,'' and ``commence operation'')
to reflect the revised applicability provisions for the Hg trading
program and to clarify and streamline the language in the definitions.
In the CAMR Notice of Final Action on Reconsideration (71 FR 33388),
EPA revised the definition of ``electric generating unit or EGU'' in 40
CFR 60.24(h) and the applicability provisions of the State model
trading rule (40 CFR 60.4104) to: (1) Exempt certain solid waste
incineration units from CAMR; (2) limit applicability to coal-fired
units serving, as of November 15, 1990 or any time later, a generator
with a greater than 25 MWe nameplate capacity producing electricity for
sale; and (3) clarify the language concerning cogeneration units. In 40
CFR 60.24(h), EPA also added definitions for ``municipal solid waste''
and ``solid waste incineration unit.'' The new and revised definitions,
in the State Plan Hg model trading rule, related to applicability would
be consistent with the definitions in 40 CFR 60.24(h) and the
applicability provisions in 40 CFR 60.4104.
In addition, the definitions of ``allocate,'' ``Hg allowance,'' and
``Hg Budget Trading Program'' would be modified to provide for
integrated operation of the State Hg trading programs administered by
EPA and Federal Hg trading program. Mercury allowances issued under
either type of program would be an ``Hg allowance''
[[Page 77116]]
usable for meeting the allowance-holding requirement under the State
model trading program (or Federal Hg trading program) regulations. In
addition, the definition of ``maximum design heat input'' would be
simplified, and the definition of ``nameplate capacity'' would be
clarified.
Further, the retired unit exemption provisions would be revised to
clarify that the appeal procedures generally applicable to final
actions of the Administrator would be applicable to final actions of
the Administrator with regard to retired units. The rule text
concerning the appeal procedures themselves would be revised simply to
reference part 78 of the Acid Rain Program regulations, and part 78
would, in turn, be revised to refer specifically, where appropriate, to
the Hg trading programs in the same way as part 78 currently refers
specifically, where appropriate, to the CAIR trading programs.
In addition, the provisions listing the content of a certificate of
representation are revised to clarify that the identification of each
unit covered by the certificate of representation includes
identification and nameplate capacity of each generator served by the
unit. EPA believes that the current rule language requiring
``identification'' of each unit subject to the trading program is
already broad enough to encompass such information concerning each
generator served by the unit, particularly since only a unit serving a
generator with a nameplate capacity greater than 25 MWe can be subject
to the Hg trading programs. However, EPA is proposing the revised
language to make it clear that generator information is required in the
certificate of representation.
EPA also proposes technical revisions to the provisions concerning
the reflection in certificates of representation of the owners and
operators of the source and units involved. The changes would make it
clear that all owners and operators must be listed and that those that
should be, but are not, listed are still bound by the certificate of
representation and the CAMR designated representative.
Further, new provisions concerning designated representatives and
authorized account representatives would be added to clarify that such
individuals may use agents in order to make electronic submissions. The
existing State model trading program regulations provide for certain
submissions (i.e., certificates of representation, applications for
general account, allowance transfers, and quarterly emissions reports)
required to be ``in a format prescribed'' or ``in a format specified''
by the Administrator. (The terms ``prescribed'' and ``specified'' have
the identical meaning in these contexts.) These submissions may be
made, or in the case of quarterly emissions reports must be made,
electronically. Although the formats for the Hg Budget Trading Program
have not yet been developed, other EPA-administered trading programs
(i.e., the Acid Rain Program and the NOX Budget Trading
Program) have analogous language concerning submission formats and have
existing, prescribed formats for submissions. The electronic formats
prescribed by the Administrator for the Acid Rain Program and the
NOX Budget Trading Program allow the designated
representative or authorized account representative, as appropriate, to
designate other individuals (``agents'') who may make the electronic
submissions for the designated representative or authorized account
representative, who is fully bound by the agent's actions. EPA
maintains that the references in the Acid Rain Program and
NOX Budget Trading Program regulations to ``prescribed'' (or
``specified'') formats, coupled with the existing electronic formats,
provide the legal authority necessary for designated representatives
and authorized account representatives to use agents to make electronic
submissions in the applicable trading programs. EPA plans to adopt
electronic formats for the Hg Budget Trading Program that, similarly,
allow for the use of agents. EPA believes that the existing references
in the CAMR State model trading program regulations to ``format[s]
prescribed'' or ``specified'' by the Administrator, when coupled with
the appropriate electronic formats, will similarly provide the legal
authority necessary for the use of agents. However, in order to remove
any uncertainty about such legal authority, EPA proposes to add
provisions to the State Hg model trading program regulations (and to
include a provision in the Federal Hg trading program regulations) that
explicitly authorize the use of agents for electronic submissions.
In addition, in the permitting provisions, EPA proposes to revise
the deadline for submission of Hg Budget permit applications to run
from the later of January 1, 2010 or the date on which the unit
commences commercial operation, rather than the date on which the unit
simply commences operation. A unit's date of commencement of commercial
operation is not likely to range from more than a few days to a few
months later than the unit's date of commencement of operation since
owners and operators of electric generating units generally prefer to
minimize using fuel without producing electricity. Moreover, running
the permit application deadline from the commencement of commercial
operation avoids the need for a complex definition of ``commence
operation'' to account for units that are not subject to the Hg Budget
Trading Program when they first combust fuel and that subsequently
become Hg Budget units.
Further, EPA proposes certain technical corrections in the Hg
allowance allocation provisions. In particular, the current provisions
concerning timing of submission of unit allocations by the permitting
authority to the Administrator provide that if the unit allocations are
not submitted on time, the Administrator will assume that the
allocations are the same as in the prior year. If the year for which
allocations are submitted late is 2018 (the beginning of phase II of
the CAMR Hg Budget trading program), the Administrator will assume that
the allocations equal the allocations for the control period in 2017,
multiplied by the amount of ounces (i.e., tons multiplied by 32,000
ounces/ton) of Hg emissions in the applicable State trading budget
under Sec. 60.4140 for 2018 and thereafter and divided by such amount
of ounces of Hg emissions for 2010 through 2017. EPA is removing these
provisions both for existing and new units because they seem unlikely
to be used and are unduly complicated. There are no comparable
provisions in the proposed Federal Hg trading program regulations.
EPA is also proposing to revise the current provisions for new unit
allocations that provide that a new unit is eligible for allocations
from the new unit set-aside until that unit has operated long enough to
develop a baseline heat input using the 3 highest figures for converted
control period heat input out of such figures for the first 5 years of
operation. At that point, the unit is supposed to be allocated
allowances from the pool of allowances allocated to all units that have
a baseline heat input. However, allowances for units with baselines are
allocated a number of years in advance of the first year for which such
allowances may be used to meet the allowance-holding requirement.
Consequently, it is possible for a new unit to have a baseline as of a
given year but find that no more allowances are available for that year
for units with baselines because the allowances for that year were
allocated before the time when the new unit's baseline was developed. A
new unit could find that, for some years, it was both ineligible for
[[Page 77117]]
the new unit set-aside and unable to obtain an allocation from the pool
for units with baselines. EPA intended that new units move seamlessly
from new-unit-set-aside eligibility to units-with-baselines allocations
and not to fall in between the two types of allocation procedures. EPA
proposes to revise the allocation provisions to clarify that a new unit
continues to be eligible for the new unit set-aside so long as the unit
is not allocated allowances from the pool for units with baselines
allocations either because the new unit does not yet have a baseline or
because all the allowances for units with baselines have already been
allocated for the year involved.
EPA also proposes technical changes that make it clear that a
separate request for new-unit-set-aside allowances must be submitted
for each control period for which they are sought and must be submitted
by May 1 of that control period. This approach will reasonably put the
burden on owners and operators to inform the State permitting authority
each year. This will ensure that the State permitting authority can
keep track, for each control period in the future, of which units are
seeking new-unit-set-aside allowances for that control period. These
submission deadlines will give the State permitting authorities more
time to process (which may include, when appropriate, opportunity for
public comment) the requests in time to submit the allocations to the
Administrator for recordation by December 1.
In addition, EPA proposes to adopt technical changes to the
provisions for recordation of allowance allocations. For example, the
current provisions require the Administrator to record the initial
allocations for 2010-2014 by December 1, 2006. Because State Plans were
not due until November 17, 2006, EPA cannot review and approve all
State plans in time to record allowance allocations in those plans by
December 1, 2006, which date EPA proposes to change to December 1,
2007. Further, the current provisions also require the recordation of
allocations for subsequent years to occur only after completion of the
end-of-year compliance determination process for a previous year.
Because of the need to finalize emissions data for a year before the
compliance determination process for that year can be completed, the
current provisions may delay recordation for a number of months.
However, as a matter of logic, there is no necessary connection between
one year's compliance determination and the future year's allocation
recordation. Consequently, EPA proposes to remove the connection made
in the current provisions and is setting an independent deadline
(December 1) for allocation recordation, which will result in
recordation several months earlier than under the current provisions.
Further, EPA proposes technical changes to the provisions referring
to when an allowance transfer by the owner of an allowance to another
allowance tracking system account is ``correctly submitted.'' The
changes would clarify that a ``correctly submitted'' allowance transfer
is one that references allowances that both: Were in the owner's
allowance tracking system account when the allowance transfer form was
submitted to the Administrator; and continue to be in such account when
the allowance transfer form is processed by the Administrator.
In addition, EPA proposes to revise the provisions for deducting
allowances to determine compliance with the allowance-holding
requirement under the trading programs. The proposed revisions would
not change the requirements that an allowance usable for compliance: Be
allocated for the year, or a year before the year, for which compliance
is being determined; and be in or covered by a proper request for
transfer into the source's compliance account by the allowance transfer
deadline. However, the statement indicating that the allowance must
also not be necessary to account for excess emissions for a prior year
would be removed because it is confusing and inconsistent with the
compliance procedures that EPA has been using in its ongoing cap-and-
trade programs (i.e., the Acid Rain Program and the NOX
Budget Trading Program).
In addition, EPA proposes to revise certain provisions concerning
the use of substitute data when the owner or operator of a unit adds a
new stack or flue and fails to meet the deadline for monitoring
certification. EPA proposes to remove procedures that would seem to
allow for substitute data other than data reflecting maximum potential
emissions. This is proposed because EPA believes that the removed
provisions would actually still result in the use of data reflecting
maximum potential emissions.
Further, EPA proposes to remove a provision that separately
requires units to monitor heat input. The provision is unnecessary
because heat input monitoring is already explicitly required in the
monitoring provisions in Sec. 60.4170.
A few changes are proposed for some other provisions (e.g.,
revising the definitions of ``CAIR NOX Trading Program,''
``CAIR NOX Ozone Season Trading Program,'' and ``CAIR
SO2 Trading Program'' to be consistent with the definitions
of these terms in the CAIR trading rules) of the State model trading
rule. These other changes are similarly technical or clarifying in
nature. All of the above-proposed changes are consistent with the
analogous provisions in the proposed Federal Hg trading program.
V. Proposed Revisions of the Acid Rain Program Regulations
A few changes are proposed for the Acid Rain Program regulations.
EPA proposes to revise the provisions concerning alternate designated
representatives in order to simplify the provisions. Specifically, EPA
proposes to remove 40 CFR 72.22(e), which allows in certain limited
circumstances the appointment of two alternate designated
representatives, rather than the customary one alternate designated
representative, for an affected source under the Acid Rain Program.
This option has rarely been used: Out of the approximately 1,500
affected plants currently in the program, only 17 currently have two
alternate designated representatives. As discussed above in Section IV
of this preamble, the Acid Rain Program regulations already allow a
designated representative or alternate designated representative to use
agents to perform online many of the same tasks that a second alternate
designated representative can perform under the existing Sec.
72.22(e). Since Sec. 72.22(e) seems to be unnecessary and is rarely
used, EPA proposes to remove it in order to simplify the provisions
applicable to alternate designated representatives.
Further, as discussed above in Section IV of this preamble, EPA
proposes to revise the appeal provisions of 40 CFR part 78 to apply to
the appeals procedures to final actions of the Administrator under the
State Hg trading program and the Federal Hg trading program, just as
these provisions already apply to final Administrator actions under the
CAIR trading programs. 40 CFR part 78 would be revised to refer
specifically, where appropriate, to the Hg trading programs in the same
way as 40 CFR part 78 currently refers specifically, where appropriate,
to the CAIR trading programs.
VI. Units Subject to the CAMR Federal Plan and New Source Performance
Standards
This section describes the relationship between the Federal Plan
and the NSPS finalized under CAMR in
[[Page 77118]]
terms of applicability and Hg emission limits. As discussed above and
in CAMR, CAMR added Hg to the list of pollutants covered under 40 CFR
part 60, subpart Da, by establishing emission limits for new sources
and guidelines for existing sources.
CAMR finalized NSPS for new coal-fired Utility Units,
subcategorized by coal type and, in some cases, unit type. In addition
to complying with these standards, new Utility Units, along with
existing coal-fired Utility Units, subject to the Federal Plan, will be
subject to the cap-and-trade provisions finalized in CAMR and being
proposed in this Federal Plan. The State Hg emission budgets are a
permanent cap regardless of growth in the electric sector and,
therefore, States, in the case of State Plans, and EPA, in the case of
Federal Plan, have the responsibility of incorporating new Utility
Units in their Hg emissions budgets.
VII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review
Under Executive Order (EO) 12866 (58 FR 51735, October 4, 1993),
this action is an economically ``significant regulatory action.'' This
determination is made in view of this action's important policy
implications and potential effect on the economy of over $100 million.
Accordingly, EPA submitted this action to the Office of Management and
Budget (OMB) for review under EO 12866 and any changes made in response
to OMB recommendations have been documented in the docket for this
action.
This Federal Plan proposal represents a Federal mandate to
implement CAMR (70 FR 28606) covering the same Hg emissions reductions
in the event that States fail to implement CAMR. For this reason, EPA
is relying on the economic analysis conducted for CAMR entitled
``Regulatory Impact Analysis of the Final Clean Air Mercury Rule.''
B. Paperwork Reduction Act
This action does not impose an information collection burden under
the provisions for the Paperwork Reduction Act (PRA), 44 U.S.C. 3501 et
seq. The PRA requirements of this rule are satisfied through the
Information Collection Request (ICR) submitted to OMB for review and
approval as part of CAMR. The burden of this proposed rule is
essentially the same as the burden estimated for CAMR. There is a
modest transfer of burden from the States to EPA if the Federal plan is
implemented rather than the CAMR State Plan. The overall total burden
is essentially unchanged. The Office of Management and Budget (OMB)
previously approved the information collection requirements contained
in the final CAMR regulations (40 CFR 60.40Da--60.52Da; 40 CFR
60.4100--60.4199) under the provisions of the PRA, and has assigned OMB
control number 2060-0567 and EPA ICR number 2137.02. A copy of the OMB
approved ICR may be obtained from Susan Auby, Collection Strategies
Division; U.S. Environmental Protection Agency (2822T); 1200
Pennsylvania Ave., NW., Washington DC 20460, or by calling (202) 566-
1672.
Burden means the total time, effort, or financial resources
expended by persons to generate, maintain, retain, or disclose or
provide information to or for a Federal agency. This includes the time
needed to review instructions; develop, acquire, install, and utilize
technology and systems for the purposes of collecting, validating, and
verifying information, processing and maintaining information, and
disclosing and providing information; adjust the existing ways to
comply with any previously applicable instructions and requirements;
train personnel to be able to respond to a collection of information;
search data sources; complete and review the collection of information;
and transmit or otherwise disclose the information.
An agency may not conduct or sponsor, and a person is not required
to respond to a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for EPA's
regulations in 40 CFR, after appearing in the preamble of the final
rule, are listed in 40 CFR part 9.
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) generally requires an agency
to prepare a regulatory flexibility analysis of any rule subject to
notice and comment rulemaking requirements under the Administrative
Procedure Act or any other statute unless the agency certifies that the
rule will not have a significant economic impact on a substantial
number of small entities. Small entities include small businesses,
small organizations, and small governmental jurisdictions.
For purposes of assessing the impacts of today's rule on small
entities, small entity is defined as: (1) A small business as defined
by the Small Business Administration's (SBA) regulations at 13 CFR
121.201; a small governmental jurisdiction that is a government of a
city, county, town, school district or special district with a
population of less than 50,000; and (3) a small organization that is
any not-for-profit enterprise which is independently owned and operated
and is not dominant in its field.
After considering the economic impacts of today's proposed rule on
small entities, I certify that this action will not have a significant
economic impact on a substantial number of small entities. As was
discussed in the final CAMR, EPA determined that it was not necessary
to prepare a regulatory flexibility analysis in conjunction with this
rulemaking. Although not required by the RFA, the Agency conducted an
additional analysis of the effects of CAMR on small entities in order
to provide additional information to States and affected sources. This
analysis is detailed in both the final CAMR and the ``Regulatory Impact
Analysis of the Final Clean Air Mercury Rule.'' This analysis found
that CAMR would not have a significant direct impact on a substantial
number of small entities. This analysis is applicable to this proposed
rule.
We continue to be interested in the potential impacts of the
proposed rule on small entities and welcome comments on issues related
to such impacts.
D. Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-
4) (UMRA), establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, local, and Tribal
governments and the private sector. Under UMRA section 202, 2 U.S.C.
1532, EPA generally must prepare a written statement, including a cost-
benefit analysis, for any proposed or final rule that ``includes any
Federal mandate that may result in the expenditure by State, local, and
Tribal governments, in the aggregate, or by the private sector, of
$100,000,000 or more * * * in any one year.'' A ``Federal mandate'' is
defined under UMRA section 421(6), 2 U.S.C. 658(6), to include a
``Federal intergovernmental mandate'' and a ``Federal private sector
mandate.'' A ``Federal intergovernmental mandate,'' in turn, is defined
to include a regulation that ``would impose an enforceable duty upon
State, local, or Tribal governments,'' UMRA section 421(5)(A)(i), 2
U.S.C. 658(5)(A)(i), except for, among other things, a duty that is ``a
condition of Federal assistance,'' UMRA section 421(5)(A)(i)(I). A
``Federal private sector mandate'' includes a regulation that
[[Page 77119]]
``would impose an enforceable duty upon the private sector,'' with
certain exceptions, UMRA section 421(7)(A), 2 U.S.C. 658(7)(A).
Before promulgating an EPA rule for which a written statement is
needed under UMRA section 202, UMRA section 205, 2 U.S.C. 1535,
generally requires EPA to identify and consider a reasonable number of
regulatory alternatives and adopt the least costly, most cost-
effective, or least burdensome alternative that achieves the objectives
of the rule.
EPA has determined that this rule contains a Federal mandate that
may result in expenditures of $100 million or more for State, local,
and tribal governments, in the aggregate, or the private sector in any
one year. Accordingly, EPA prepared a written statement for the final
CAMR consistent with the requirements of UMRA section 202. Furthermore,
as EPA stated in the rule, EPA is not directly establishing any
regulatory requirements that may significantly or uniquely affect small
governments, including Tribal governments. Thus, EPA is not obligated
to develop under UMRA section 203 a small government agency plan.
Furthermore, in a manner consistent with the intergovernmental
consultation provisions of UMRA section 204, EPA carried out
consultations with the governmental entities affected by this rule.
For the final CAMR, EPA conducted an analysis of the potential
economic impacts anticipated of CAMR on government-owned entities. The
results support EPA's assertion in the NPR that the proposed rule would
not have a disproportionate budgetary impact on government entities.
This analysis is detailed in both the final CAMR and the ``Regulatory
Impact Analysis of the Final Clean Air Mercury Rule.'' This analysis is
applicable to this proposed rule.
E. Executive Order 13132: Federalism
Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and local officials in the
development of regulatory policies that have federalism implications.''
``Policies that have federalism implications'' is defined in the EO to
include regulations that 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.''
This proposed rule does not have Federalism implications. It will
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 EO 13132. These effects would not occur from the final
rule itself because it is the provisions of the CAA that require EPA,
after a State has failed to submit a State Plan or a complete State
Plan, to make a finding to that effect and then promulgate a Federal
Plan. Although EPA would be exercising discretion to promulgate the
Federal Plan at an early date, EPA would rescind the Federal Plan for
each State that submits a State Plan that EPA approves. Moreover, as
emphasized throughout the preamble, States are not required to adopt
the Federal Plan provisions, or any particular portion thereof, in
order for EPA to approve their State Plans. Thus, EO 13132 does not
apply to this proposed rule.
Even so, in the spirit of EO 13132, and consistent with EPA policy
to promote communications between EPA and State and local governments,
EPA consulted with State and local officials early in the process of
developing the proposed regulation to permit them to have meaningful
and timely input into its development. EPA is including a number of
provisions for States in the proposed rule so as not to constrain
States' abilities to complete approvable State Plans, such as the
ability to submit State allocation methodologies, and intends to
withdraw the Federal Plan upon approval of State Plans.
F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments
Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by Tribal officials in the development of regulatory
policies that have Tribal implications.'' This proposal does not have
``Tribal implications'' as specified in EO 13175.
This proposal addresses pollution composed of Hg and mercuric
compounds. The final CAMR required annual Hg reductions for the power
sector in 50 States, the District of Columbia, and in Indian country,
through a cap-and-trade system that States and eligible Tribes have the
option of adopting. The CAA provides for States and eligible Tribes to
develop plans to regulate emissions of air pollutants within their
areas. The regulations clarify the statutory obligations of States and
eligible Tribes that develop plans to implement this rule. The TAR (40
CFR 49.1-49.119) gives eligible Tribes the opportunity to develop and
implement CAA programs, but it leaves to the discretion of the Tribe
whether to develop these programs and which programs, or appropriate
elements of a program, the Tribe will adopt. As noted earlier, the EPA
will implement the emission trading rule for coal-fired Utility Units
located in Indian country in accordance with the TAR unless the
relevant Tribe for the land on which a particular coal-fired Utility
Unit is located seeks and obtains TAS status and submits a TIP to
implement the allocated Hg emissions budget. Tribes which choose to do
so will be responsible for submitting a TIP analogous to the State
Plans discussed throughout this preamble, and, like States, can choose
to adopt the Model Cap-and-Trade Rule described elsewhere in this
action.
This proposal does not have Tribal implications as defined by EO
13175. It does not have a substantial direct effect on one or more
Indian Tribes, because no Tribe has implemented a Federally enforceable
air quality management program under the CAA at this time. Furthermore,
this proposal does not affect the relationship or distribution of power
and responsibilities between the Federal government and Indian Tribes.
The CAA and the TAR establish the relationship of the Federal
government and Tribes in developing plans to attain the national
ambient air quality standards (NAAQS), and this proposal does nothing
to modify that relationship. EPA has complied with the provisions of EO
13175.
EPA notes that in the event a Tribe does implement a TIP in the
future, this proposal could have implications for that Tribe, but it
would not impose substantial direct costs upon the Tribe, nor preempt
Tribal law. EPA has estimated that the total annual private costs for
the rule for Hg as implemented by State, local, and eligible Tribal
governments (or EPA in the absence of any Tribe seeking TAS status) is
approximately $160 million in 2010, $100 million in 2015, and $750
million in 2020 (1999$). There are currently three coal-fired Utility
Units located in Indian country that will be affected by this rule and
the percentage of Indian country that will be impacted is very small.
For eligible Tribes that choose to regulate sources in Indian country,
the costs would be attributed to inspecting regulated facilities and
enforcing adopted regulations.
[[Page 77120]]
EPA consulted with Tribal officials in developing the final CAMR
and this proposal. The EPA encouraged Tribal input at an early stage. A
Tribal representative from the Navajo Nation was a member of the
official workgroup and was provided with all workgroup materials. EPA
has provided two briefings for Tribal representatives and the newly
formed National Tribal Air Association (NTAA), and other national
Tribal forums such as the National Tribal Environmental Council (NTEC)
and the National Tribal Forum during the period prior to issuance of
the CAMR NPR. Another briefing for Tribal representatives, NTAA, and
NTEC was provided post-proposal to provide opportunity for additional
input. In addition, Tribal representatives participated in EPA's
regional implementation workshops for CAMR in the summer of 2005.
EPA conducted additional informal outreach for Tribes during the
CAMR reconsideration process. First, EPA prepared an update on the
reconsideration and CAMR Federal Plan development for the EPA Tribal
Newsletter in January 2006. Second, EPA, through both Headquarters and
Regional Offices, has worked to address Tribes' specific questions or
concerns regarding implementation of CAMR. Finally, EPA has met with
representatives from one Tribe that is concerned with the implications
of CAMR for the development of new tribal electricity generation.
G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks
Executive Order 13045, ``Protection of Children from Environmental
Health and Safety Risks'' (62 FR 19885, April 23, 1997) applies to any
rule that (1) Is determined to be ``economically significant'' as
defined under EO 12866, and (2) concerns an environmental health or
safety risk that EPA has reason to believe may have a disproportionate
effect on children. If the regulatory action meets both criteria,
Section 5-501 of the EO directs the Agency to evaluate the
environmental health or safety effects of the planned rule on children,
and explain why the planned regulation is preferable to other
potentially effective and reasonably feasible alternatives considered
by the Agency.
We believe that the environmental health or safety risk addressed
by this action may have a disproportionate effect on children.
Accordingly, we have evaluated the environmental health or safety
effects of this rule on children. The results of this evaluation are
discussed in the final CAMR and in the ``Regulatory Impact Analysis for
the Final Clean Air Mercury Rule.'' EPA concluded that CAMR will
further improve air quality and will further improve children's health.
H. Executive Order 13211: Actions Concerning Regulations That
Significantly Affect Energy Supply, Distribution, or Use
Executive Order 13211 (66 FR 28355, May 22, 2001) provides that
agencies shall prepare and submit to the Administrator of the Office of
Regulatory Affairs, OMB, a Statement of Energy Effects for certain
actions identified as ``significant energy actions.'' Section 4(b) of
EO 13211 defines ``significant energy actions'' as ``any action by an
agency (normally published in the Federal Register) that promulgates or
is expected to lead to the promulgation of a final rule or regulation,
including notices of inquiry, advance notices of final rulemaking, and
notices of final rulemaking: (1)(i) That is a significant regulatory
action under EO 12866 or any successor order, and (ii) is likely to
have a significant adverse effect on the supply, distribution, or use
of energy; or (2) that is designated by the Administrator of the Office
of Information and Regulatory Affairs as a ``significant energy
action.'' Although this proposal is a significant regulatory action
under EO 12866, this rule likely will not have a significant adverse
effect on the supply, distribution, or use of energy. EPA concluded
that the impact of the final CAMR is not significant because the final
rule did not have a greater than 1 percent impact on the cost of
electricity production and because it does not result in the retirement
of greater than 500 MW of coal-fired generation. EPA's analysis of the
energy impacts of the final CAMR can be found in the ``Regulatory
Impact Analysis for the Final Clean Air Mercury Rule.''
I. National Technology Transfer and Advancement Act
As noted in the CAMR final rule, section 12(d) of the National
Technology Transfer and Advancement Act (NTTAA) of 1995 (Pub. L. 104-
113; 15 U.S.C. 272 note) directs EPA to use voluntary consensus
standards in their regulatory and procurement activities unless to do
so would be inconsistent with applicable law or otherwise
impracticable. Voluntary consensus standards are technical standards
(e.g., material specifications, test methods, sampling procedures,
business practices) developed or adopted by one or more voluntary
consensus bodies. The NTTAA requires EPA to provide Congress, through
OMB, with explanations when EPA decides not to use available and
applicable voluntary consensus standards.
During the development of the final CAMR, EPA searched for
voluntary consensus standards that might be applicable. The search
identified three voluntary consensus standards that were considered
practical alternatives to the specified EPA test methods. An assessment
of these and other voluntary consensus standards is presented in the
preamble to the final CAMR (70 FR 28647; May 18, 2005). This proposed
action does not propose the use of any additional technical standards
beyond those cited in the final CAMR. Therefore, EPA is not considering
the use of any additional voluntary consensus standards for this
action.
J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations
Executive Order 12898, ``Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations,'' requires
Federal agencies to consider the impact of programs, policies, and
activities on minority populations and low-income populations.
According to EPA guidance,\7\ agencies are to assess whether minority
or low-income populations face risks or a rate of exposure to hazards
that are significant and that ``appreciably exceed or is likely to
appreciably exceed the risk or rate to the general population or to the
appropriate comparison group.'' (EPA, 1998)
---------------------------------------------------------------------------
\7\ U.S. Environmental Protection Agency, 1998. Guidance for
Incorporating Environmental Justice Concerns in EPA's NEPA
Compliance Analyses. Office of Federal Activities, Washington, DC,
April 1998.
---------------------------------------------------------------------------
In accordance with EO 12898, the Agency has considered whether this
proposal may have disproportionate negative impacts on minority or low
income populations. The Agency expects this proposal to lead to
beneficial reductions in air pollution and exposures generally with a
small negative impact through increased utility bills. The increase in
the price for electric power is estimated to be 0.2 percent of retail
electricity prices when it is shared among all members of society
equally. The price increase is not considered to be a disproportionate
impact on minority populations and low-income populations. For this
reason, negative impacts to these sub-populations that appreciably
exceed
[[Page 77121]]
similar impacts to the general population are not expected.
There will be beneficial outcomes to these populations as the
result of this action. In the absence of CAMR, there are health effects
that are likely to affect certain populations in the U.S., including
subsistence anglers, Native Americans, and Asian Americans. These
populations may include low income and minority populations who are
disproportionately impacted by Hg exposures due to their economic,
cultural, and religious activities that lead to higher levels of
consumption of fish than the general populations. CAMR is expected to
reduce Hg exposures among these populations. EPA's analysis of these
impacts is found in the ``Regulatory Impact Analysis for the Final
Clean Air Mercury Rule.''
List of Subjects
40 CFR Part 60
Environmental protection, Administrative practice and procedure,
Air pollution control, Coal, Electric power plants, Intergovernmental
relations, Metals, Natural gas, Nitrogen dioxide, Particulate matter,
Reporting and recordkeeping requirements, Sulfur oxides.
40 CFR Part 62
Environmental protection, Air pollution control, Hazardous
substances, Reporting and recordkeeping requirements.
40 CFR Part 72
Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Intergovernmental relations, Nitrogen
oxides, Reporting and recordkeeping requirements, Sulfur oxides.
40 CFR Part 78
Acid rain, Administrative practice and procedure, Air pollution
control, Electric utilities, Nitrogen oxides, Reporting and
recordkeeping requirements, Sulfur oxides.
Dated: December 7, 2006.
Stephen L. Johnson,
Administrator.
For the reasons set forth in the preamble, parts 60, 62, 72, and 78
of chapter 1 of title 40 of the Code of Federal Regulations are
proposed to be amended as follows:
PART 60--[AMENDED]
1. The authority citation for part 60 continues to read as follows:
Authority: 42 U.S.C. 7401, 7403, 7426, and 7601.
Sec. 60.17 [Amended]
2. Section 60.17 is amended, in paragraph (a)(14) by revising the
words ``and 60.4102'' to read ``, 60.4120, and 62.15902''.
3. Section 60.24 is amended as follows:
a. In paragraph (h)(8) in the definition of ``Boiler'', by revising
the words ``fossil-or other fuel-fired'' to read ``fossil- or other-
fuel-fired'';
b. In paragraph (h)(8) in the definition of ``Cogeneration unit'',
by revising in paragraph (2) the words ``after which'' to read ``after
the calendar year in which'';
c. In paragraph (h)(8) in the definition of ``Combustion turbine'',
by revising in paragraph (2) the words ``heat recovery steam
generator'' to read ``duct burner, heat recovery steam generator,'';
d. In paragraph (h)(8), by removing the definition of ``Heat
input'';
e. In paragraph (h)(8), by revising the definition of ``Maximum
design heat input'';
f. In paragraph (h)(8) in the definition of ``Nameplate capacity'',
by revising the words ``derates) as specified'' to read ``deratings) as
of such installation as specified'' and by revising the words
``derates), such increased maximum amount as specified'' to read
``deratings), such increased maximum amount as of such completion as
specified'';
g. In paragraph (h)(8) in the definition of ``Sequential use of
energy'', by revising in paragraph (2) the word ``seful'' to read
``useful'';
h. In paragraph (h)(8) in the definition of ``Useful thermal
energy'', by revising in paragraph (2) the words ``heat'' to read
``heating''; and
i. In paragraph (h)(8), by adding new definitions of ``Municipal
waste'' and ``Solid waste incineration unit'';
j. By adding a new paragraph (h)(9) to read as follows:
Sec. 60.24 Emission standards and compliance schedules.
* * * * *
(h) * * *
(8) * * *
Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
* * * * *
Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
* * * * *
Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
* * * * *
(9) Notwithstanding any other provision of this paragraph, a State
may adopt, and submit by May 30, 2007, a State Hg allowance allocation
methodology replacing the provisions in Sec. Sec. 62.15941 and
62.15942 of this chapter under the Federal Hg Budget Trading Program
under subpart HHHH of this part with:
(i) Allocation provisions substantively identical to Sec. Sec.
62.15941 and 62.15942 of this chapter, under which the permitting
authority makes the allocations; or
(ii) Any methodology for allocating Hg allowances to individual
sources under which the permitting authority makes the allocations,
provided that:
(A) The State's methodology must not allow the permitting authority
to allocate Hg allowances for a year in excess of the amount in the
State's trading budget for such year.
(B) The State's methodology must require that, for EGUs commencing
operation before January 1, 2001, the permitting authority will
determine, and notify the Administrator of, each unit's allocation of
Hg allowances by October 31, 2007 for 2010, 2011, and 2012 and by
October 31, 2009 and October 31 of each year thereafter for the 4th
year after the year of the notification deadline.
(C) The State's methodology must require that, for EGUs commencing
operation on or after January 1, 2001, the permitting authority will
determine, and notify the Administrator of, each unit's allocation of
Hg allowances by October 31 of the year for which the Hg allowances are
allocated.
4. Section 60.4102 is amended as follows:
a. By revising the definition of ``Allocate or allocation'';
b. By revising the definition of ``Allowance transfer deadline'';
c. In the definition of ``Alternate Hg designated representative'',
by revising the words ``in accordance with Sec. Sec. 60.4110 through
60.4114,'' to read ``, in accordance with Sec. Sec. 60.4110 through
60.4115,'' and by adding four sentences at the end of the definition;
d. In the definition of ``Automated data acquisition and handling
system or DAHS'', by revising the words ``under Sec. Sec. 60.4170
through 60.4176'' to read ``under Sec. Sec. 60.4170 through 60.4175''
and by revising the words ``required Sec. Sec. 60.4170 through
60.4176'' to read ``required by Sec. Sec. 60.4170 through 60.4175''.
[[Page 77122]]
e. In the definition of ``Boiler'', by revising the words ``fossil-
or other-fuel-fired'' to read ``fossil- or other-fuel-fired'';
f. By revising the definition of ``CAIR NOX Annual
Trading Program'';
g. By revising the definition of ``CAIR NOX Ozone Season
Trading Program'';
h. By revising the definition of ``CAIR SO2 Trading
Program'';
i. In the definition of ``Cogeneration unit'', by revising in
paragraph (2) the words ``after which'' to read ``after the calendar
year in which'';
j. In the definition of ``Combustion turbine'', by revising in
paragraph (2) the words ``heat recovery steam generator'' to read
``duct burner, heat recovery steam generator,'';
k. By revising the definition of ``Commence commercial operation'';
l. By revising the definition of ``Commence operation'';
m. In the definition of ``Continuous emission monitoring system or
CEMS'', in the introductory text by revising the word ``CEMS'' to read
``continuous emission monitoring systems'' and by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'' whenever they appear and in paragraphs (1) and (2) by
revising the words ``in units of'' to read ``in''.
n. In the definition of ``Control period'', by revising the words
``January 1 of a calendar year and'' to read ``January 1 of a calendar
year, except as provided in Sec. 60.4106(c)(2), and'';
o. In the definition of ``Emissions'', by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'';
p. In the definition of ``Heat input'', by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'';
q. By revising the definition of ``Hg allowance'';
r. In the definition of ``Hg allowance deduction or deduct CAIR
NOX allowances'', by adding, after the words ``compliance
account'', the words ``, e.g.,'', by removing the words ``Sec. Sec.
60.4150 through 60.4157 and'', and by revising the words ``Sec. Sec.
60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170 through
60.4175'';
s. In the definition of ``Hg authorized account representative'',
by revising the words ``Sec. 60.4152'' to read ``Sec. Sec. 60.4110
through 60.4115 and Sec. Sec. 60.4150 through 60.4157'';
t. In the definition of ``Hg Budget emissions limitation'', by
revising the words ``in ounces'' to read ``, in ounces of Hg emissions
in a control period,'' and revising the words ``for a control period''
to read ``for the control period'';
u. By revising the definition of ``Hg Budget Trading Program'';
v. In the definition of ``Hg designated representative'', by
revising the words ``Sec. Sec. 60.4110 through 60.4114'' to read
``Sec. Sec. 60.4110 through 60.4115'' and by adding four sentences at
the end of the definition;
w. By revising the definition of ``Maximum design heat input'';
x. In the definition of ``Monitoring system'', by revising the
words ``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec.
60.4170 through 60.4175'';
y. In the definition of Nameplate capacity'', by revising the
words ``other deratings) as specified'' to read ``other deratings) as
of such installation as specified'' and by revising the words ``maximum
amount as specified'' to read ``maximum amount as of such completion as
specified;
z. In the definition of ``Ounce'', by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'';
aa. In the definition of ``Permitting authority'', by removing the
words ``in accordance with Sec. Sec. 60.4120 through 60.4124'';
bb. In the definition of ``Receive or receipt'', by revising the
words ``correspondence log'' to read ``log'';
cc. In the definition of ``Source'', by revising the word ``CAA''
to read ``Clean Air Act'';
dd. In the definition of ``Title V operating permit'', by revising
the word ``CAA'' to read ``Clean Air Act'';
ee. In the definition of ``Title V operating permit regulations'',
by revising the word ``CAA'' to read ``Clean Air Act'';
ff. In the definition of ``Useful thermal energy'', by revising in
paragraph (2) the words ``heat application'' to read ``heating
application''; and
gg. Adding new definitions of ``CAIR NOX Ozone Season
source'', ``CAIR NOX source'', ``CAIR SO2
source'', ``Municipal waste'', ``Replacement, replace, or replaced'',
and ``Solid waste incineration unit'':
Sec. 60.4102 Definitions.
* * * * *
Allocate or allocation means, with regard to Hg allowances, the
determination by a permitting authority or the Administrator of the
amount of such Hg allowances to be initially credited to a Hg Budget
unit, a new unit set-aside, or other entity.
* * * * *
Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately
following the control period and is the deadline by which a Hg
allowance transfer must be submitted for recordation in a Hg Budget
source's compliance account in order to be used to meet the source's Hg
Budget emissions limitation for such control period in accordance with
Sec. 60.4154.
* * * * *
Alternate Hg designated representative means * * * If the Hg Budget
source is also a CAIR NOX source, then this natural person
shall be the same person as the alternate CAIR designated
representative under the CAIR NOX Annual Trading Program. If
the Hg Budget source is also a CAIR SO2 source, then this
natural person shall be the same person as the alternate CAIR
designated representative under the CAIR SO2 Trading
Program. If the Hg Budget source is also a CAIR NOX Ozone Season
source, then this natural person shall be the same person as the
alternate CAIR designated representative under the CAIR NOX Ozone
Season Trading Program. If the Hg Budget source is also subject to the
Acid Rain Program, then this natural person shall be the same person as
the alternate designated representative under the Acid Rain Program.
* * * * *
CAIR NOX Annual Trading Program means a multi-state nitrogen oxides
air pollution control and emission reduction program approved and
administered by the Administrator in accordance with subparts AA
through II of part 96 of this chapter and Sec. 51.123(o)(1) or (2) of
this chapter or established by the Administrator in accordance with
subparts AA through II of part 97 of this chapter and Sec. Sec.
51.123(p) and 52.35 of this chapter, as a means of mitigating
interstate transport of fine particulates and nitrogen oxides.
CAIR NOX Ozone Season source means a source that is subject to the
CAIR NOX Ozone Season Trading Program.
CAIR NOX Ozone Season Trading Program means a multi-state nitrogen
oxides air pollution control and emission reduction program approved
and administered by the Administrator in accordance with subparts AAAA
through IIII of part 96 of this chapter and Sec. 51.123(aa)(1) or (2)
(and (bb)(1)), (bb)(2), or (dd) of this chapter or established by the
Administrator in accordance with subparts AAAA through IIII of part 97
of this chapter and Sec. Sec. 51.123(ee) and 52.35 of this chapter, as
a means of mitigating interstate transport of ozone and nitrogen
oxides.
[[Page 77123]]
CAIR NOX source means a source that is subject to the CAIR
NOX Annual Trading Program.
CAIR SO2 source means a source that is subject to the CAIR
SO2 Trading Program.
CAIR SO2 Trading Program means a multi-state sulfur dioxide air
pollution control and emission reduction program approved and
administered by the Administrator in accordance with subparts AAA
through III of part 96 of this chapter and Sec. 51.124(o)(1) or (2) of
this chapter or established by the Administrator in accordance with
subparts AAA through III of part 97 of this chapter and Sec. Sec.
51.124(r) and 52.36 of this chapter, as a means of mitigating
interstate transport of fine particulates and sulfur dioxide.
* * * * *
Commence commercial operation means, with regard to a unit:
(1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec. 60.4105.
(i) For a unit that is a Hg Budget unit under Sec. 60.4104 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that
subsequently undergoes a physical change (other than replacement of the
unit by a unit at the same source), such date shall remain the date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
(ii) For a unit that is a Hg Budget unit under Sec. 60.4104 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
(2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec. 60.4105, for a unit that is not a Hg Budget unit
under Sec. 60.4104 on the later of November 15, 1990 or the date the
unit commences commercial operation as defined in paragraph (1) of this
definition, the unit's date for commencement of commercial operation
shall be the date on which the unit becomes a Hg Budget unit under
Sec. 60.4104.
(i) For a unit with a date for commencement of commercial operation
as defined in paragraph (2) of this definition and that subsequently
undergoes a physical change (other than replacement of the unit by a
unit at the same source), such date shall remain the unit's date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
(ii) For a unit with a date for commencement of commercial
operation as defined in paragraph (2) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
Commence operation means:
(1) To have begun any mechanical, chemical, or electronic process,
including, with regard to a unit, start-up of a unit's combustion
chamber.
(2) For a unit that undergoes a physical change (other than
replacement of the unit by a unit at the same source) after the date
the unit commences operation as defined in paragraph (1) of this
definition, such date shall remain the date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
(3) For a unit that is replaced by a unit at the same source (e.g.,
repowered) after the date the unit commences operation as defined in
paragraph (1) of this definition, such date shall remain the replaced
unit's date of commencement of operation, and the replacement unit
shall be treated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1), (2), or (3) of
this definition, as appropriate.
* * * * *
Hg allowance means a limited authorization issued by a permitting
authority or the Administrator under provisions of a State plan that
are approved under Sec. 52.24(h)(6) of this chapter, or under
Sec. Sec. 62.15940 through 62.15943 of this chapter, to emit one ounce
of mercury during a control period of the specified calendar year for
which the authorization is allocated or of any calendar year thereafter
under the Hg Budget Trading Program. An authorization to emit mercury
that is not issued under provisions of a State plan that are approved
under Sec. 52.24(h)(6) of this chapter or under Sec. Sec. 62.15940
through 62.15943 of this chapter shall not be a ``Hg allowance.''
* * * * *
Hg Budget Trading Program means a multi-state Hg air pollution
control and emission reduction program approved and administered by the
Administrator in accordance with this subpart and Sec. 60.24(h)(6) or
established by the Administrator in accordance with subpart LLL of part
62 of this chapter, Sec. 60.24(h)(9), and Sec. 62.13(f) of this
chapter, as a means of reducing national Hg emissions.
* * * * *
Hg designated representative means * * * If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Annual Trading Program. If the Hg Budget source is also
a CAIR SO2 source, then this natural person shall be the
same person as the CAIR designated representative under the CAIR
SO2 Trading Program. If the Hg Budget source is also a CAIR
NOX Ozone Season source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Ozone Season Trading Program. If the Hg Budget source is
also subject to the Acid Rain Program, then this natural person shall
be the same person as the designated representative under the Acid Rain
Program.
* * * * *
Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
* * * * *
Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
* * * * *
Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent shutdown and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or shutdown unit
(the replaced unit).
* * * * *
Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
* * * * *
5. Section 60.4103 is revised to read as follows:
[[Page 77124]]
Sec. 60.4103 Measurements, abbreviations, and acronyms.
Measurements, abbreviations, and acronyms used in this subpart are
defined as follows:
Btu--British thermal unit.
CO2--carbon dioxide.
H2O--water.
Hg--mercury.
hr--hour.
kW--kilowatt electrical.
kWh--kilowatt hour.
lb--pound.
MMBtu--million Btu.
MWe--megawatt electrical.
MWh--megawatt hour.
NOX--nitrogen oxides.
O2--oxygen.
ppm--parts per million.
scfh--standard cubic feet per hour.
SO2--sulfur dioxide.
yr--year.
Sec. 60.4104 [Amended]
6. Section 60.4104 is amended, in paragraph (a)(1) by removing the
words ``and subparts BB through HH of this part''.
Sec. 60.4105 [Amended]
7. Section 60.4105 is amended as follows:
a. In paragraph (a)(1), by revising the words ``through (8), Sec.
60.4107, and Sec. Sec. 60.4150'' to read ``through (7), Sec. 60.4107,
Sec. 60.4108, Sec. Sec. 60.4110 through 60.4115, and Sec. Sec.
60.4140'';
b. In paragraph (b)(3), by revising the words ``shall retain at the
source'' to read ``shall retain, at the source'' and
c. In paragraph (b)(7), by revising the words ``Sec. Sec. 60.4170
through 60.4176'' to read ``Sec. Sec. 60.4170 through 60.4175'' and by
revising the words ``commences operation and commercial operation'' to
read ``commences commercial operation''.
Sec. 60.4106 [Amended]
8. Section 60.4106 is amended as follows:
a. In paragraph (a)(1)(i), by revising the words ``in Sec.
60.4121(a) and (b)'' to read ``in Sec. 60.4121'';
b. In paragraph (a)(3), by revising the words ``is not required''
to read ``is not otherwise required'' whenever they appear;
c. In paragraphs (b)(1), (b)(2), and (c)(1), by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'';
d. In paragraph (c)(2), by revising the words ``under paragraph
(c)(1) of this section'' to read ``under paragraph (c)(1) of this
section for the control period'' and by revising the words ``under
Sec. 60.4170(b)(1) or (2)'' to read ``under Sec. 60.4170(b)(1) or (2)
and for each control period thereafter'';
e. In paragraph (c)(4), by revising the words ``Sec. Sec.
60.4160'' to read ``Sec. Sec. 60.4150'';
f. In paragraph (c)(7), by revising the words ``Sec. Sec.
60.4150'' to read ``Sec. Sec. 60.4140'', by revising the words ``from
a Hg Budget unit's compliance account'' to read ``from a Hg Budget
source's compliance account'', and by removing the words ``that
includes the Hg Budget unit'';
g. In paragraph (d)(1), by removing the paragraph designation
``(1)'' and by redesignating paragraph (d)(1)(i) as paragraph (d)(1);
h. By removing paragraph (d)(2) and by redesignating paragraph
(d)(1)(ii) as paragraph (d)(2);
i. In paragraphs (e)(1)(ii) and (e)(2), by revising the words
``Sec. Sec. 60.4170 through 60.4176'' to read ``Sec. Sec. 60.4170
through 60.4175'' whenever they appear; and
j. In paragraph (g), by revising the word ``CAA'' to read ``Clean
Air Act''.
Sec. 60.4108 [Amended]
9. Section 60.4108 is amended by revising the words ``shall be the
procedures'' to read ``are'' and removing the second sentence.
Sec. 60.4110 [Amended]
10. Section 60.4110 is amended, in paragraph (e)(2), by revising
the words ``owner'' to read ``owners''.
Sec. 60.4111 [Amended]
11. Section 60.4111 is amended, in paragraph (c), by revising the
words ``60.4151, and 60.4174,'' to read ``60.4115, and 60.4151,''.
Sec. 60.4112 [Amended]
12. Section 60.4112 is amended, in paragraph (c)(1), by revising
the words ``a new owner'' to read ``an owner'', by revising the words
``such new owner'' to read ``such owner'', and by revising the words
``the new owner'' to read ``the owner''.
Sec. 60.4113 [Amended]
13. Section 60.4113 is amended as follows:
a. In paragraph (a)(1), by revising the words ``is submitted.'' to
read ``is submitted, including identification and nameplate capacity of
each generator served by each such unit''; and
b. In paragraph (a)(4)(iv), by revising the words ``where a
customer'' to read ``where a utility or industrial customer''.
14. Add a new Sec. 60.4115 to read as follows:
Sec. 60.4115 Delegation by Hg designated representative and alternate
Hg designated representative.
(a) A Hg designated representative may delegate, to one or more
natural persons, his or her authority to make an electronic submission
to the Administrator provided for or required under this subpart.
(b) An alternate Hg designated representative may delegate, to one
or more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
subpart.
(c) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (a) or (b) of this
section, the Hg designated representative or alternate Hg designated
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
(1) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg designated
representative or alternate Hg designated representative;
(2) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(3) For each such natural person, a list of the type or types of
electronic submissions under paragraph (a) or (b) of this section for
which authority is delegated to him or her; and
(4) The following certification statements by such Hg designated
representative or alternate Hg designated representative:
(i) ``I agree that any electronic submission to the Administrator
that is by an agent identified in this notice of delegation and of a
type listed for such agent in this notice of delegation and that is
made when I am a Hg designated representative or alternate Hg
designated representative, as appropriate, and before this notice of
delegation is superseded by another notice of delegation under 40 CFR
60.4115(d) shall be deemed to be an electronic submission by me.''
(ii) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 60.4115(d), I agree to maintain an e-
mail account and to notify the Administrator immediately of any change
in my e-mail address, unless all delegation of authority by me under 40
CFR 60.4115 is terminated.''
(d) A notice of delegation submitted under paragraph (c) of this
section shall be effective, with regard to the Hg designated
representative or alternate Hg designated representative identified in
such notice, upon receipt of such notice by the Administrator and until
[[Page 77125]]
receipt by the Administrator of a superseding notice of delegation
submitted by such Hg designated representative or alternate Hg
designated representative, as appropriate. The superseding notice of
delegation may replace any previously identified agent, add a new
agent, or eliminate entirely any delegation of authority.
(e) Any electronic submission covered by the certification in
paragraph (c)(4)(i) of this section and made in accordance with a
notice of delegation effective under paragraph (d) of this section
shall be deemed to be an electronic submission by the Hg designated
representative or alternative Hg designated representative submitting
such notice of delegation.
Sec. 60.4120 [Amended]
15. Section 60.4120 is amended, in paragraph (a), by revising the
words ``otherwise by this section and'' to read ``otherwise by
paragraph (b) of this section, Sec. 60.4105, and''.
Sec. 60.4121 [Amended]
16. Section 60.4121 is amended, in paragraph (a), by revising the
words ``commences operation'' to read ``commences commercial
operation''.
Sec. 60.4123 [Amended]
17. Section 60.4123 is amended, in paragraph (b), by revising the
words ``Sec. Sec. 60.4150'' to read ``Sec. Sec. 60.4140''.
Sec. 60.4141 [Amended]
18. Section 60.4141 is amended as follows:
a. In paragraph (b)(1), by removing the paragraph designation
``(1)'' and by revising the words ``October 31, 2008'' to read
``October 31, 2009'';
b. By removing paragraph (b)(2);
c. In paragraph (c)(1), by removing the paragraph designation
``(1)''; and
d. By removing paragraph (c)(2).
19. Section 60.4142 is amended as follows:
a. By revising paragraph (c) introductory text;
b. In paragraph (c)(2), by revising the words ``The Hg allowance
allocation request must be submitted on or before July 1 of the first
control period for which Hg allowances are requested'' to read ``A
separate Hg allowance allocation request for each control period for
which Hg allowances are sought must be submitted on or before May 1 of
such control period'';
c. In paragraph (c)(3), by revising the words ``control period
immediately before'' to read ``calendar year immediately before'';
d. In paragraph (c)(4)(ii), by revising the words ``On or after
July 1'' to read ``On or after May 1'';
e. In paragraph (d), by revising the words ``for 2010 through 2014,
and 97 percent for 2014'' to read ``for a control period in 2010
through 2014, and 97 percent for a control period in 2015''.
Sec. 60.4142 Hg allowance allocations.
* * * * *
(c) For each control period in 2009 and thereafter, the permitting
authority will allocate Hg allowances to Hg Budget units in a State
that are not allocated Hg allowances under paragraph (b) of this
section because the units do not yet have a baseline heat input under
paragraph (a) of this section or because the units have a baseline heat
input but all Hg allowances available under paragraph (b) of this
section for the control period are already allocated, in accordance
with the following procedures:
* * * * *
20. Section 60.4151 is amended as follows:
a. By revising paragraph (b)(2) introductory text;
b. In paragraph (b)(3)(iii)(A), by revising the words ``a new
person'' to read ``a person'', by revising the words ``such new
person'' to read ``such person'', and by revising the words ``the new
person'' to read ``the person'';
c. In paragraph (b)(3)(iii)(B), by revising the words ``addition of
persons'' to read ``addition of a new person'';
d. In paragraph (b)(4) introductory text, by revising the word
``representative'' to read ``representative and alternate Hg authorized
account representative'';
e. In paragraphs (b)(4)(ii) and (iii), by revising the words
``alternative Hg'' to read ``alternate Hg'' whenever they appear; and
f. By adding a new paragraph (b)(5) to read as follows:
Sec. 60.4151 Establishment of accounts.
* * * * *
(b) * * *
* * * * *
(2) Authorization of Hg authorized account representative and
alternate Hg authorized account representative. * * *
* * * * *
(5) Delegation by Hg authorized account representative and
alternate Hg authorized account representative.
(i) A Hg authorized account representative may delegate, to one or
more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
section and Sec. Sec. 60.4152 through 60.4162.
(ii) An alternate Hg authorized account representative may
delegate, to one or more natural persons, his or her authority to make
an electronic submission to the Administrator provided for or required
under this section and Sec. Sec. 60.4152 through 60.4162.
(iii) In order to delegate authority to make an electronic
submission to the Administrator in accordance with paragraph (b)(5)(i)
or (ii) of this section, the Hg authorized account representative or
alternate Hg authorized account representative, as appropriate, must
submit to the Administrator a notice of delegation, in a format
prescribed by the Administrator, that includes the following elements:
(A) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg authorized account
representative or alternate Hg authorized account representative;
(B) The name, address, e-mail address, telephone number, and,
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(C) For each such natural person, a list of the type or types of
electronic submissions under paragraph (b)(5)(i) or (ii) of this
section for which authority is delegated to him or her;
(D) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``I agree that any electronic submission to the
Administrator that is by an agent identified in this notice of
delegation and of a type listed for such agent in this notice of
delegation and that is made when I am a Hg authorized account
representative or alternate Hg authorized representative, as
appropriate, and before this notice of delegation is superseded by
another notice of delegation under 40 CFR 60.4151(b)(5)(iv) shall be
deemed to be an electronic submission by me.''; and
(E) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``Until this notice of delegation is superseded by
another notice of delegation under 40 CFR 60.4151 (b)(5)(iv), I agree
to maintain an e-mail account and to notify the Administrator
immediately of any change in my e-mail address unless all delegation of
authority under 40 CFR 60.4151(b)(5) is terminated.''
[[Page 77126]]
(iv) A notice of delegation submitted under paragraph (b)(5)(iii)
of this section shall be effective, with regard to the Hg authorized
account representative or alternate Hg authorized account
representative identified in such notice, upon receipt of such notice
by the Administrator and until receipt by the Administrator of a
superseding notice of delegation submitted by such Hg authorized
account representative or alternate Hg authorized account
representative, as appropriate. The superseding notice of delegation
may replace any previously identified agent, add a new agent, or
eliminate entirely any delegation of authority.
(v) Any electronic submission covered by the certification in
paragraph (b)(5(iii)(D) of this section and made in accordance with a
notice of delegation effective under paragraph (b)(5)(iv) of this
section shall be deemed to be an electronic submission by the Hg
designated representative or alternate Hg designated representative
submitting such notice of delegation.
* * * * *
21. Section 60.4153 is amended as follows:
a. In paragraph (a), by revising the words ``By December 1, 2006,''
to read ``By December 1, 2007,'' and by revising the words ``at a
source'' to read ``at the source'';
b. In paragraph (b), by revising the words ``December 1, 2008'' to
read ``December 1, 2009'' and by removing the words ``or as determined
by the Administrator'';
c. By revising paragraph (c); and
d. In paragraph (d), by removing the words ``or determined by the
Administrator''.
Sec. 60.4153 Recordation of Hg allowance allocations.
* * * * *
(c) By December 1, 2010 and December 1 of each year thereafter, the
Administrator will record in the Hg Budget source's compliance account
the Hg allowances allocated for the Hg Budget units at the source, as
submitted by the permitting authority in accordance with Sec.
60.4141(b), for the control period in the sixth year after the year of
the applicable deadline for recordation under this paragraph.
* * * * *
Sec. 60.4154 [Amended]
22. Section 60.4154 is amended:
a. In paragraph (a)(1), by revising the words ``prior year;'' to
read ``prior year; and'';
b. In paragraph (a)(2), by revising the words ``Sec. Sec. 60.4160
through 60.4162 by the allowance transfer deadline for the control
period; and'' to read ``Sec. Sec. 60.4160 and 60.4161 by the allowance
transfer deadline for the control period.'';
c. By removing paragraph (a)(3);
d. In paragraph (b) introductory text, by revising the words
``Sec. Sec. 60.4160 through 60.4162'' to read ``Sec. 60.4161'';
e. In paragraph (b)(1), by revising the words ``Sec. Sec. 60.4170
through 60.4176'' to read ``Sec. Sec. 60.4170 through 60.4175'';
f. In paragraph (c)(2)(ii), by revising the words ``to any unit''
to read ``to any entity'';
g. In paragraph (d)(2), by revising the word ``violation'' to read
``violations'';
h. In paragraph (e), by revising the words ``under paragraph (b) or
(d)'' to read ``under paragraphs (b) and (d)''; and
i. In paragraph (f)(2), by revising the words ``of this section.''
to read ``of this section, and record such deductions and transfers.''
Sec. 60.4157 [Amended]
23. Section 60.4157 is amended in paragraphs (a) and (b) by
revising the words ``Sec. 60.4160 through 60.4162'' to read
``Sec. Sec. 60.4160 and 60.4161''.
24. Section 60.4170 is amended as follows:
a. In the introductory text and paragraphs (a)(1) and (a)(2), by
revising the words ``Sec. Sec. 60.4170 through 60.4176'' to read
``Sec. Sec. 60.4170 through 60.4175'';
b. In paragraph (b) introductory text, by revising the words ``The
owner'' to read ``Except as provided in paragraph (e) of this section,
the owner'';
c. In paragraph (c)(1), by removing the paragraph designation
``(1)'' and by revising the words ``Except as provided in paragraph
(c)(2) of this section, the owner'' to read ``The owner'';
d. By removing paragraph (c)(2);
e. In paragraph (d)(1), by revising the words ``Sec. Sec. 60.4171
through 60.4176'' to read ``Sec. Sec. 60.4171 through 60.4174'';
f. In paragraph (d)(2), by revising the words ``Sec. Sec. 60.4171
through 60.4176'' to read ``Sec. Sec. 60.4171 through 60.4175'';
g. In paragraph (d)(3), by revising the words ``the atmosphere'' to
read ``the atmosphere or heat input'' and by revising the words
``Sec. Sec. 60.4171 through 60.4176'' to read ``Sec. Sec. 60.4171
through 60.4175'';
h. In paragraph (d)(4) introductory text, by revising the words
``this subpart'' to read ``this section and Sec. Sec. 60.4171 through
60.4175''
i. In paragraph (d)(4)(ii), by revising the words ``Sec. Sec.
60.4171 through 60.4176'' to read ``Sec. Sec. 60.4171 through
60.4175''; and
j. By adding a new paragraph (e) to read as follows:
Sec. 60.4170 General requirements.
* * * * *
(e) Long-term cold storage. The owner or operator of a Hg Budget
unit is subject to the applicable provisions of part 75 of this chapter
concerning units in long-term cold storage.
Sec. 60.4171 [Amended]
25. Section 60.4171 is amended as follows:
a. In paragraph (c) introductory text, by revising the words
``(e.g.,'' to read ``(i.e.,'';
b. In paragraph (c)(1), by revising the words ``each monitoring
system under Sec. 60.4170(a)(1)'' to read ``each continuous monitoring
system under Sec. 60.4170(a)(1)'';
c. In paragraph (c)(3) introductory text, by revising the words
``apply the word `recertification' instead of'' to read ``replace'' and
revise the words ``and apply the word `recertified' instead of the word
`certified' '' to read ``with the word `recertification', replace the
word `certified' with the word `recertified','';
d. In paragraph (c)(3)(v)(A), by revising the words ``Sec.
75.20(a)(4)(iii), or'' to read ``Sec. 75.20(a)(4)(iii) or'';
e. In paragraph (c)(3)(v)(A)(1), by revising the words ``of this
chapter, and'' to read ``of this chapter.''; and
f. In paragraph (e), by revising the words ``by the Administrator
and, if applicable, the permitting authority'' to read ``by the
Administrator''.
Sec. 60.4173 [Amended]
26. Section 60.4173 is amended by removing the words ``, except
that if the unit is not subject to an Acid Rain emissions limitation,
the notification is only required to be sent to the permitting
authority''.
27. Section 60.4174 is amended as follows:
a. By revising paragraph (a);
b. In paragraph (d)(3), by removing the words ``and Sec.
60.4176''; and
c. In paragraph (e)(1), by removing the words ``Sec. 60.4176,'';
and
d. Revising paragraph (e)(2).
Sec. 60.4174 Recordkeeping and reporting.
(a) General provisions. The Hg designated representative shall
comply with all recordkeeping and reporting requirements in this
section, the applicable recordkeeping and reporting requirements of
Sec. 75.84 of this chapter, and the requirements of Sec.
60.4110(e)(1).
* * * * *
(e) * * *
(2) For a unit with add-on Hg emission controls, a flue gas
desulfurization system, a selective catalytic reduction system, or a
compact hybrid particulate collector system and
[[Page 77127]]
for all hours where Hg data are substituted in accordance with Sec.
75.34(a)(1) of this chapter,
(i)(A) The Hg add-on emission controls, flue gas desulfurization
system, selective catalytic reduction system, or compact hybrid
particulate collector system were operating within the range of
parameters listed in the quality assurance/quality control program
under appendix B to part 75 of this chapter, or
(B) With regard to a flue gas desulfurization system or a selective
catalytic reduction system, quality-assured SO2 emission
data recorded in accordance with part 75 of this chapter document that
the flue gas desulfurization system was operating properly or quality-
assured NOX emission data recorded in accordance with part
75 of this chapter document that the selective catalytic reduction
system was operating properly, as applicable, and
(ii) The substitute data values do not systematically underestimate
Hg emissions.
Sec. 60.4175 [Amended]
28. Section 60.4175 is amended by revising the words ``Hg unit'' to
read ``Hg Budget unit'' and by removing the words ``and Sec. 60.4176''
whenever they appear.
Sec. 60.4176 [Removed]
29. Section 60.4176 is removed.
PART 62--[AMENDED]
30. The authority citation for part 62 continues to read as
follows:
Authority: 42 U.S.C. 7401, et seq.
31. Section 62.13 is amended by adding a new paragraph (f) to read
as follows:
Sec. 62.13 Federal plans.
* * * * *
(f) The substantive requirements of the coal-fired electric steam
generating units mercury Federal plan are contained in subpart LLL of
this part. These requirements include emission limits, compliance
schedules, testing, monitoring, and reporting and recordkeeping
requirements.
32. Add a new subpart LLL to read as follows:
Subpart LLL--Emission Guidelines and Compliance Times for Coal-Fired
Electric Steam Generating Units
Sec.
Hg Budget Trading Program General Provisions
62.15901 Purpose.
62.15902 Definitions.
62.15903 Measurements, abbreviations, and acronyms.
62.15904 Applicability.
62.15905 Retired unit exemption.
62.15906 Standard requirements.
62.15907 Computation of time.
62.15908 Appeal procedures.
Hg Designated Representative for Hg Budget Sources
62.15910 Authorization and responsibilities of Hg designated
representative.
62.15911 Alternate Hg designated representative.
62.15912 Changing Hg designated representative and alternate Hg
designated representative; changes in owners and operators.
62.15913 Certificate of representation.
62.15914 Objections concerning Hg designated representative.
62.15915 Delegation by Hg designated representative and alternate Hg
designated representative.
Permits
62.15920 General Hg budget trading program permit requirements.
62.15921 Submission of Hg budget permit applications.
62.15922 Information requirements for Hg budget permit applications.
62.15923 Hg budget permit contents and term.
62.15924 Hg budget permit revisions.
62.15930 [Reserved]
Hg Allowance Allocations
62.15940 State trading budgets.
62.15941 Timing requirements for Hg allowance allocations.
62.15942 Hg allowance allocations.
62.15943 Alternative of allocation of Hg allowances by permitting
authority.
Hg Allowance Tracking System
62.15950 [Reserved]
62.15951 Establishment of accounts.
62.15952 Responsibilities of Hg authorized account representative.
62.15953 Recordation of Hg allowance allocations.
62.15954 Compliance with Hg budget emissions limitation.
62.15955 Banking.
62.15956 Account error.
62.15957 Closing of general accounts.
Hg Allowance Transfers
62.15960 Submission of Hg allowance transfers.
62.15961 EPA recordation.
62.15962 Notification.
Monitoring and Reporting
62.15970 General requirements.
62.15971 Initial certification and recertification procedures.
62.15972 Out of control periods.
62.15973 Notifications.
62.15974 Recordkeeping and reporting.
62.15975 Petitions.
Appendix A to Subpart Lll of Part 62--States With Approved State
Plans Concerning Allocations
Subpart LLL--Emission Guidelines and Compliance Times for Coal-
Fired Electric Steam Generating Units
Hg Budget Trading Program General Provisions
Sec. 62.15901 Purpose.
(a) This subpart sets forth the general provisions and the
designated representative, permitting, allowance, and monitoring
provisions for the federal mercury (Hg) Budget Trading Program, under
section 111 of the Clean Air Act (CAA), as a means of reducing national
Hg emissions.
(b) Sources located in the following States, for which the
Administrator has made a finding of failure to submit an approvable
State plan under Sec. 60.24(h) of this chapter and have not
subsequently submitted to the Administrator an approved and currently
effective State plan under Sec. 60.24(h) of this chapter are subject
to this subpart: [Reserved].
Sec. 62.15902 Definitions.
The terms used in this subpart shall have the meanings set forth in
this section as follows:
Account number means the identification number given by the
Administrator to each Hg Allowance Tracking System account.
Acid Rain emissions limitation means a limitation on emissions of
sulfur dioxide or nitrogen oxides under the Acid Rain Program.
Acid Rain Program means a multi-state sulfur dioxide and nitrogen
oxides air pollution control and emission reduction program established
by the Administrator under title IV of the CAA and parts 72 through 78
of this chapter.
Administrator means the Administrator of the United States
Environmental Protection Agency or the Administrator's duly authorized
representative.
Allocate or allocation means, with regard to Hg allowances, the
determination by a permitting authority or the Administrator of the
amount of Hg allowances to be initially credited to a Hg Budget unit, a
new unit set-aside, or other entity.
Allowance transfer deadline means, for a control period, midnight
of March 1 (if it is a business day), or midnight of the first business
day thereafter (if March 1 is not a business day), immediately
following the control period and is the deadline by which a Hg
allowance transfer must be submitted for recordation in a Hg Budget
source's compliance account in order to be used to meet the source's Hg
Budget emissions limitation for such
[[Page 77128]]
control period in accordance with Sec. 62.15954.
Alternate Hg designated representative means, for a Hg Budget
source and each Hg Budget unit at the source, the natural person who is
authorized by the owners and operators of the source and all such units
at the source, in accordance with Sec. Sec. 62.15910 through 62.15915,
to act on behalf of the Hg designated representative in matters
pertaining to the Hg Budget Trading Program. If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the alternate CAIR designated representative under
the CAIR NOX Annual Trading Program. If the Hg Budget source
is also a CAIR SO2 source, then this natural person shall be
the same person as the alternate CAIR designated representative under
the CAIR SO2 Trading Program. If the Hg Budget source is
also a CAIR NOX Ozone Season source, then this natural
person shall be the same person as the alternate CAIR designated
representative under the CAIR NOX Ozone Season Trading
Program. If the Hg Budget source is also subject to the Acid Rain
Program, then this natural person shall be the same person as the
alternate designated representative under the Acid Rain Program.
Automated data acquisition and handling system or DAHS means that
component of the continuous emission monitoring system (CEMS), or other
emissions monitoring system approved for use under Sec. Sec. 62.15970
though 62.15975, designed to interpret and convert individual output
signals from pollutant concentration monitors, flow monitors, diluent
gas monitors, and other component parts of the monitoring system to
produce a continuous record of the measured parameters in the
measurement units required under Sec. Sec. 62.15970 through 62.15975.
Boiler means an enclosed fossil- or other-fuel-fired combustion
device used to produce heat and to transfer heat to recirculating
water, steam, or other medium.
Bottoming-cycle cogeneration unit means a cogeneration unit in
which the energy input to the unit is first used to produce useful
thermal energy and at least some of the reject heat from the useful
thermal energy application or process is then used for electricity
production.
CAIR NOX Annual Trading Program means a multi-state nitrogen oxides
air pollution control and emission reduction program established by the
Administrator in accordance with subparts AA through II of part 97 of
this chapter and Sec. Sec. 51.123(p) and 52.35 of this chapter or
approved and administered by the Administrator in accordance with
subparts AA through II of part 96 of this chapter and Sec.
51.123(o)(1) or (2) of this chapter, as a means of mitigating
interstate transport of fine particulates and nitrogen oxides.
CAIR NOX Ozone Season source means a source that is subject to the
CAIR NOX Ozone Season Trading Program.
CAIR NOX Ozone Season Trading Program means a multi-
state nitrogen oxides air pollution control and emission reduction
program established by the Administrator in accordance with subparts
AAAA through IIII of part 97 of this chapter and Sec. Sec. 51.123(ee)
and 52.35 of this chapter or approved and administered by the
Administrator in accordance with subparts AAAA through IIII of part 96
of this chapter and Sec. 51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2),
or (dd) of this chapter, as a means of mitigating interstate transport
of ozone and nitrogen oxides.
CAIR NOX source means a source that is subject to the CAIR
NOX Annual Trading Program.
CAIR SO2 source means a source that is subject to the CAIR
SO2 Trading Program.
CAIR SO2 Trading Program means a multi-state sulfur dioxide air
pollution control and emission reduction program established by the
Administrator in accordance with subparts AAA through III of part 97 of
this chapter and Sec. Sec. 51.124(r) and 52.36 of this chapter or
approved and administered by the Administrator in accordance with
subparts AAA through III of part 96 of this chapter and Sec.
51.124(o)(1) or (2) of this chapter, as a means of mitigating
interstate transport of fine particulates and sulfur dioxide.
Certifying official means:
(1) For a corporation, a president, secretary, treasurer, or vice-
president of the corporation in charge of a principal business function
or any other person who performs similar policy or decision-making
functions for the corporation;
(2) For a partnership or sole proprietorship, a general partner or
the proprietor respectively; or
(3) For a local government entity or State, Federal, or other
public agency, a principal executive officer or ranking elected
official.
Clean Air Act or CAA means the Clean Air Act, 42 U.S.C. 7401, et
seq.
Coal means any solid fuel classified as anthracite, bituminous,
subbituminous, or lignite by the American Society of Testing and
Materials (ASTM) Standard Specification for Classification of Coals by
Rank D388-77, 90, 91, 95, 98a, or 99 (Reapproved 2004)[egr]1
(incorporated by reference, see Sec. 60.17).
Coal-derived fuel means any fuel (whether in a solid, liquid, or
gaseous state) produced by the mechanical, thermal, or chemical
processing of coal.
Coal-fired means combusting any amount of coal or coal-derived
fuel, alone or in combination with any amount of any other fuel, during
any year.
Cogeneration unit means a stationary, coal-fired boiler or
stationary, coal-fired combustion turbine:
(1) Having equipment used to produce electricity and useful thermal
energy for industrial, commercial, heating, or cooling purposes through
the sequential use of energy; and
(2) Producing during the 12-month period starting on the date the
unit first produces electricity and during any calendar year after the
calendar year in which the unit first produces electricity:
(i) For a topping-cycle cogeneration unit,
(A) Useful thermal energy not less than 5 percent of total energy
output; and
(B) Useful power that, when added to one-half of useful thermal
energy produced, is not less then 42.5 percent of total energy input,
if useful thermal energy produced is 15 percent or more of total energy
output, or not less than 45 percent of total energy input, if useful
thermal energy produced is less than 15 percent of total energy output.
(ii) For a bottoming-cycle cogeneration unit, useful power not less
than 45 percent of total energy input.
Combustion turbine means:
(1) An enclosed device comprising a compressor, a combustor, and a
turbine and in which the flue gas resulting from the combustion of fuel
in the combustor passes through the turbine, rotating the turbine; and
(2) If the enclosed device under paragraph (1) of this definition
is combined cycle, any associated duct burner, heat recovery steam
generator, and steam turbine.
Commence commercial operation means, with regard to a unit:
(1) To have begun to produce steam, gas, or other heated medium
used to generate electricity for sale or use, including test
generation, except as provided in Sec. 62.15905.
(i) For a unit that is a Hg Budget unit under Sec. 62.15904 on the
later of November 15, 1990 or the date the unit commences commercial
operation as defined in paragraph (1) of this definition and that
subsequently undergoes a physical change (other than replacement of the
unit by a unit at the same source), such date shall remain the
[[Page 77129]]
date of commencement of commercial operation of the unit, which shall
continue to be treated as the same unit.
(ii) For a unit that is a Hg Budget unit under Sec. 62.15904 on
the later of November 15, 1990 or the date the unit commences
commercial operation as defined in paragraph (1) of this definition and
that is subsequently replaced by a unit at the same source (e.g.,
repowered), such date shall remain the replaced unit's date of
commencement of commercial operation, and the replacement unit shall be
treated as a separate unit with a separate date for commencement of
commercial operation as defined in paragraph (1) or (2) of this
definition as appropriate.
(2) Notwithstanding paragraph (1) of this definition and except as
provided in Sec. 62.15905, for a unit that is not a Hg Budget unit
under Sec. 62.15904 on the later of November 15, 1990 or the date the
unit commences commercial operation as defined in paragraph (1) of this
definition, the unit's date for commencement of commercial operation
shall be the date on which the unit becomes a Hg Budget unit under
Sec. 62.15904.
(i) For a unit with a date for commencement of commercial operation
as defined in paragraph (2) of this definition and that subsequently
undergoes a physical change (other than replacement of the unit by a
unit at the same source), such date shall remain the date of
commencement of commercial operation of the unit, which shall continue
to be treated as the same unit.
(ii) For a unit with a date for commencement of commercial
operation as defined in paragraph (2) of this definition and that is
subsequently replaced by a unit at the same source (e.g., repowered),
such date shall remain the replaced unit's date of commencement of
commercial operation, and the replacement unit shall be treated as a
separate unit with a separate date for commencement of commercial
operation as defined in paragraph (1) or (2) of this definition as
appropriate.
Commence operation means:
(1) To have begun any mechanical, chemical, or electronic process,
including, with regard to a unit, start-up of a unit's combustion
chamber.
(2) For a unit that undergoes a physical change (other than
replacement of the unit by a unit at the same source) after the date
the unit commences operation as defined in paragraph (1) of this
definition, such date shall remain the date of commencement of
operation of the unit, which shall continue to be treated as the same
unit.
(3) For a unit that is replaced by a unit at the same source (e.g.,
repowered) after the date the unit commences operation as defined in
paragraph (1) of this definition, such date shall remain the replaced
unit's date of commencement of operation, and the replacement unit
shall be treated as a separate unit with a separate date for
commencement of operation as defined in paragraph (1), (2), or (3) of
this definition, as appropriate.
Common stack means a single flue through which emissions from 2 or
more units are exhausted.
Compliance account means a Hg Allowance Tracking System account,
established by the Administrator for a Hg Budget source under
Sec. Sec. 62.15950 through 62.15957, in which any Hg allowance
allocations for the Hg Budget units at the source are initially
recorded and in which are held any Hg allowances available for use for
a control period in order to meet the source's Hg Budget emissions
limitation in accordance with Sec. 62.15954.
Continuous emission monitoring system or CEMS means the equipment
required under Sec. Sec. 62.15970 through 62.15975 to sample, analyze,
measure, and provide, by means of readings recorded at least once every
15 minutes (using an automated data acquisition and handling system
(DAHS)), a permanent record of Hg emissions, stack gas volumetric flow
rate, stack gas moisture content, and oxygen or carbon dioxide
concentration (as applicable), in a manner consistent with part 75 of
this chapter. The following systems are the principal types of
continuous emission monitoring systems required under Sec. Sec.
62.15970 through 62.15975:
(1) A flow monitoring system, consisting of a stack flow rate
monitor and an automated data acquisition and handling system and
providing a permanent, continuous record of stack gas volumetric flow
rate, in standard cubic feet per hour (scfh);
(2) A Hg concentration monitoring system, consisting of a Hg
pollutant concentration monitor and an automated data acquisition and
handling system and providing a permanent, continuous record of Hg
emissions in micrograms per dry standard cubic meter ([mu]g/dscm);
(3) A moisture monitoring system, as defined in Sec. 75.11(b)(2)
of this chapter and providing a permanent, continuous record of the
stack gas moisture content, in percent H2O.
(4) A carbon dioxide monitoring system, consisting of a
CO2 concentration monitor (or an oxygen monitor plus
suitable mathematical equations from which the CO2
concentration is derived) and an automated data acquisition and
handling system and providing a permanent, continuous record of
CO2 emissions, in percent CO2; and
(5) An oxygen monitoring system, consisting of an O2
concentration monitor and an automated data acquisition and handling
system and providing a permanent, continuous record of O2,
in percent O2.
Control period means the period beginning January 1 of a calendar
year, except as provided in Sec. 62.15906(c)(2), and ending on
December 31 of the same year, inclusive.
Emissions means air pollutants exhausted from a unit or source into
the atmosphere, as measured, recorded, and reported to the
Administrator by the Hg designated representative and as determined by
the Administrator in accordance with Sec. Sec. 62.15970 through
62.15975.
Excess emissions means any ounce of mercury emitted by the Hg
Budget units at a Hg Budget source during a control period that exceeds
the Hg Budget emissions limitation for the source.
General account means a Hg Allowance Tracking System account,
established under Sec. 62.15951, that is not a compliance account.
Generator means a device that produces electricity.
Gross electrical output means, with regard to a cogeneration unit,
electricity made available for use, including any such electricity used
in the power production process (which process includes, but is not
limited to, any on-site processing or treatment of fuel combusted at
the unit and any on-site emission controls).
Heat input means, with regard to a specified period of time, the
product (in MMBtu/time) of the gross calorific value of the fuel (in
Btu/lb) divided by 1,000,000 Btu/MMBtu and multiplied by the fuel feed
rate into a combustion device (in lb of fuel/time), as measured,
recorded, and reported to the Administrator by the Hg designated
representative and determined by the Administrator in accordance with
Sec. Sec. 62.15970 through 62.15975 and excluding the heat derived
from preheated combustion air, recirculated flue gases, or exhaust from
other sources.
Heat input rate means the amount of heat input (in MMBtu) divided
by unit operating time (in hr) or, with regard to a specific fuel, the
amount of heat input attributed to the fuel (in MMBtu) divided by the
unit operating time (in hr) during which the unit combusts the fuel.
[[Page 77130]]
Hg allowance means a limited authorization issued by a permitting
authority or the Administrator under Sec. Sec. 62.15940 through
62.15943, or under provisions of a State plan that are approved under
Sec. 52.24(h)(6) of this chapter, to emit one ounce of mercury during
a control period of the specified calendar year for which the
authorization is allocated or of any calendar year thereafter under the
Hg Budget Trading Program. An authorization to emit mercury that is not
issued under Sec. Sec. 62.15940 through 62.15943 or under provisions
of a State plan that are approved under Sec. 52.24(h)(6) of this
chapter shall not be a ``Hg allowance.''
Hg allowance deduction or deduct Hg allowances means the permanent
withdrawal of Hg allowances by the Administrator from a compliance
account, e.g., in order to account for a specified number of ounces of
total mercury emissions from all Hg Budget units at a Hg Budget source
for a control period, determined in accordance with Sec. Sec. 62.15970
through 62.15975, or to account for excess emissions.
Hg Allowance Tracking System means the system by which the
Administrator records allocations, deductions, and transfers of Hg
allowances under the Hg Budget Trading Program. Such allowances will be
allocated, held, deducted, or transferred only as whole allowances.
Hg Allowance Tracking System account means an account in the Hg
Allowance Tracking System established by the Administrator for purposes
of recording the allocation, holding, transferring, or deducting of Hg
allowances.
Hg allowances held or hold Hg allowances means the Hg allowances
recorded by the Administrator, or submitted to the Administrator for
recordation, in accordance with Sec. Sec. 62.15950 through 62.15962,
in a Hg Allowance Tracking System account.
Hg authorized account representative means, with regard to a
general account, a responsible natural person who is authorized, in
accordance with Sec. Sec. 62.15910 through 62.15915 and Sec. Sec.
62.15950 through 62.15957, to transfer and otherwise dispose of Hg
allowances held in the general account and, with regard to a compliance
account, the Hg designated representative of the source.
Hg Budget emissions limitation means, for a Hg Budget source, the
equivalent, in ounces of Hg emissions in a control period, of the Hg
allowances available for deduction for the source under Sec.
62.15954(a) and (b) for the control period.
Hg Budget permit means the legally binding and Federally
enforceable written document, or portion of such document, issued by
the permitting authority under Sec. Sec. 62.15920 through 62.15924,
including any permit revisions, specifying the Hg Budget Trading
Program requirements applicable to a Hg Budget source, to each Hg
Budget unit at the source, and to the owners and operators and the Hg
designated representative of the source and each such unit.
Hg Budget source means a source that includes one or more Hg Budget
units.
Hg Budget Trading Program means a multi-state Hg air pollution
control and emission reduction program established by the Administrator
in accordance with this subpart, Sec. 60.24(h)(9) of this chapter, and
Sec. 62.13(f) or approved and administered by the Administrator in
accordance with subpart HHHH of part 60 and Sec. 60.24(h)(6) of this
chapter, as a means of reducing national Hg emissions.
Hg Budget unit means a unit that is subject to the Hg Budget
Trading Program under Sec. 62.15904.
Hg designated representative means, for a Hg Budget source and each
Hg Budget unit at the source, the natural person who is authorized by
the owners and operators of the source and all such units at the
source, in accordance with Sec. Sec. 62.15910 through 62.15915, to
represent and legally bind each owner and operator in matters
pertaining to the Hg Budget Trading Program. If the Hg Budget source is
also a CAIR NOX source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Annual Trading Program. If the Hg Budget source is also
a CAIR SO2 source, then this natural person shall be the
same person as the CAIR designated representative under the CAIR
SO2 Trading Program. If the Hg Budget source is also a CAIR
NOX Ozone Season source, then this natural person shall be
the same person as the CAIR designated representative under the CAIR
NOX Ozone Season Trading Program. If the Hg Budget source is
also subject to the Acid Rain Program, then this natural person shall
be the same person as the designated representative under the Acid Rain
Program.
Life-of-the-unit, firm power contractual arrangement means a unit
participation power sales agreement under which a utility or industrial
customer reserves, or is entitled to receive, a specified amount or
percentage of nameplate capacity and associated energy generated by any
specified unit and pays its proportional amount of such unit's total
costs, pursuant to a contract:
(1) For the life of the unit;
(2) For a cumulative term of no less than 30 years, including
contracts that permit an election for early termination; or
(3) For a period no less than 25 years or 70 percent of the
economic useful life of the unit determined as of the time the unit is
built, with option rights to purchase or release some portion of the
nameplate capacity and associated energy generated by the unit at the
end of the period.
Lignite means coal that is classified as lignite A or B according
to the American Society of Testing and Materials (ASTM) Standard
Specification for Classification of Coals by Rank D388-77, 90, 91, 95,
98a, or 99 (Reapproved 2004) [egr]\1\ (incorporated by reference, see
Sec. 60.17).
Maximum design heat input means the maximum amount of fuel per hour
(in Btu/hr) that a unit is capable of combusting on a steady-state
basis as of the initial installation of the unit as specified by the
manufacturer of the unit.
Monitoring system means any monitoring system that meets the
requirements of Sec. Sec. 62.15970 through 62.15975, including a
continuous emissions monitoring system, an alternative monitoring
system, or an excepted monitoring system under part 75 of this chapter.
Municipal waste means ``municipal waste'' as defined in section
129(g)(5) of the Clean Air Act.
Nameplate capacity means, starting from the initial installation of
a generator, the maximum electrical generating output (in MWe) that the
generator is capable of producing on a steady-state basis and during
continuous operation (when not restricted by seasonal or other
deratings) as of such installation as specified by the manufacturer of
the generator or, starting from the completion of any subsequent
physical change in the generator resulting in an increase in the
maximum electrical generating output (in MWe) that the generator is
capable of producing on a steady-state basis and during continuous
operation (when not restricted by seasonal or other deratings), such
increased maximum amount as of such completion as specified by the
person conducting the physical change.
Operator means any person who operates, controls, or supervises a
Hg Budget unit or a Hg Budget source and shall include, but not be
limited to, any holding company, utility system, or plant manager of
such a unit or source.
[[Page 77131]]
Ounce means 2.84 x 10\7\ micrograms. For the purpose of determining
compliance with the Hg Budget emissions limitation, total ounces of
mercury emissions for a control period shall be calculated as the sum
of all recorded hourly emissions (or the mass equivalent of the
recorded hourly emission rates) in accordance with Sec. Sec. 62.15970
through 62.15975, but with any remaining fraction of an ounce equal to
or greater than 0.50 ounces deemed to equal one ounce and any remaining
fraction of an ounce less than 0.50 ounces deemed to equal zero ounces.
Owner means any of the following persons:
(1) With regard to a Hg Budget source or a Hg Budget unit at a
source, respectively:
(i) Any holder of any portion of the legal or equitable title in a
Hg Budget unit at the source or the Hg Budget unit;
(ii) Any holder of a leasehold interest in a Hg Budget unit at the
source or the Hg Budget unit; or
(iii) Any purchaser of power from a Hg Budget unit at the source or
the Hg Budget unit under a life-of-the-unit, firm power contractual
arrangement; provided that, unless expressly provided for in a
leasehold agreement, owner shall not include a passive lessor, or a
person who has an equitable interest through such lessor, whose rental
payments are not based (either directly or indirectly) on the revenues
or income from such Hg Budget unit; or
(2) With regard to any general account, any person who has an
ownership interest with respect to the Hg allowances held in the
general account and who is subject to the binding agreement for the Hg
authorized account representative to represent the person's ownership
interest with respect to Hg allowances.
Permitting authority means the State air pollution control agency,
local agency, other State agency, or other agency authorized by the
Administrator to issue or revise permits to meet the requirements of
the Hg Budget Trading Program or, if no such agency has been so
authorized, the Administrator.
Potential electrical output capacity means 33 percent of a unit's
maximum design heat input, divided by 3,413 Btu/kWh, divided by 1,000
kWh/MWh, and multiplied by 8,760 hr/yr.
Receive or receipt of means, when referring to the permitting
authority or the Administrator, to come into possession of a document,
information, or correspondence (whether sent in hard copy or by
authorized electronic transmission), as indicated in an official log,
or by a notation made on the document, information, or correspondence,
by the permitting authority or the Administrator in the regular course
of business.
Recordation, record, or recorded means, with regard to Hg
allowances, the movement of Hg allowances by the Administrator into or
between Hg Allowance Tracking System accounts, for purposes of
allocation, transfer, or deduction.
Reference method means any direct test method of sampling and
analyzing for an air pollutant as specified in Sec. 75.22 of this
chapter.
Replacement, replace, or replaced means, with regard to a unit, the
demolishing of a unit, or the permanent shutdown and permanent
disabling of a unit, and the construction of another unit (the
replacement unit) to be used instead of the demolished or shutdown unit
(the replaced unit).
Repowered means, with regard to a unit, replacement of a coal-fired
boiler with one of the following coal-fired technologies at the same
source as the coal-fired boiler:
(1) Atmospheric or pressurized fluidized bed combustion;
(2) Integrated gasification combined cycle;
(3) Magnetohydrodynamics;
(4) Direct and indirect coal-fired turbines;
(5) Integrated gasification fuel cells; or
(6) As determined by the Administrator in consultation with the
Secretary of Energy, a derivative of one or more of the technologies
under paragraphs (1) through (5) of this definition and any other coal-
fired technology capable of controlling multiple combustion emissions
simultaneously with improved boiler or generation efficiency and with
significantly greater waste reduction relative to the performance of
technology in widespread commercial use as of January 1, 2005.
Sequential use of energy means:
(1) For a topping-cycle cogeneration unit, the use of reject heat
from electricity production in a useful thermal energy application or
process; or
(2) For a bottoming-cycle cogeneration unit, the use of reject heat
from useful thermal energy application or process in electricity
production.
Serial number means, for a Hg allowance, the unique identification
number assigned to each Hg allowance by the Administrator.
Solid waste incineration unit means a stationary, coal-fired boiler
or stationary, coal-fired combustion turbine that is a ``solid waste
incineration unit'' as defined in section 129(g)(1) of the Clean Air
Act.
Source means all buildings, structures, or installations located in
one or more contiguous or adjacent properties under common control of
the same person or persons. For purposes of section 502(c) of the Clean
Air Act, a ``source,'' including a ``source'' with multiple units,
shall be considered a single ``facility.''
State means:
(1) For purposes of referring to a governing entity, one of the
States in the United States, the District of Columbia, or, if approved
for treatment as a State under part 49 of this chapter, the Navajo
Nation or Ute Indian Tribe where such governing entity is subject to a
finding by the Administrator of failure to submit an approvable State
plan under Sec. 60.24(h) of this chapter and has not subsequently
submitted to the Administrator an approved and currently effective
State plan under Sec. 60.24(h) of this chapter; or
(2) For purposes of referring to geographic areas, one of the
States in the United States, the District of Columbia, the Navajo
Nation Indian country, or the Ute Tribe Indian country that is not
covered by an Administrator approved and currently effective State or
Tribal plan.
Subbituminous means coal that is classified as subbituminous A, B,
or C, according to the American Society of Testing and Materials (ASTM)
Standard Specification for Classification of Coals by Rank D388-77, 90,
91, 95, 98a, or 99 (Reapproved 2004) \1\ (incorporated by reference,
see Sec. 60.17).
Submit or serve means to send or transmit a document, information,
or correspondence to the person specified in accordance with the
applicable regulation:
(1) In person;
(2) By United States Postal Service; or
(3) By other means of dispatch or transmission and delivery.
Compliance with any ``submission'' or ``service'' deadline shall be
determined by the date of dispatch, transmission, or mailing and not
the date of receipt.
Title V operating permit means a permit issued under title V of the
Clean Air Act and part 70 or part 71 of this chapter.
Title V operating permit regulations means the regulations that the
Administrator has approved or issued as meeting the requirements of
title V of the Clean Air Act and part 70 or 71 of this chapter.
Topping-cycle cogeneration unit means a cogeneration unit in which
the energy input to the unit is first used to produce useful power,
including
[[Page 77132]]
electricity, and at least some of the reject heat from the electricity
production is then used to provide useful thermal energy.
Total energy input means, with regard to a cogeneration unit, total
energy of all forms supplied to the cogeneration unit, excluding energy
produced by the cogeneration unit itself.
Total energy output means, with regard to a cogeneration unit, the
sum of useful power and useful thermal energy produced by the
cogeneration unit.
Unit means a stationary, coal-fired boiler or a stationary, coal-
fired combustion turbine.
Unit operating day means a calendar day in which a unit combusts
any fuel.
Unit operating hour or hour of unit operation means an hour in
which a unit combusts any fuel.
Useful power means, with regard to a cogeneration unit, electricity
or mechanical energy made available for use, excluding any such energy
used in the power production process (which process includes, but is
not limited to, any on-site processing or treatment of fuel combusted
at the unit and any on-site emission controls).
Useful thermal energy means, with regard to a cogeneration unit,
thermal energy that is:
(1) Made available to an industrial or commercial process (not a
power production process), excluding any heat contained in condensate
return or makeup water;
(2) Used in a heating application (e.g., space heating or domestic
hot water heating); or
(3) Used in a space cooling application (i.e., thermal energy used
by an absorption chiller).
Utility power distribution system means the portion of an
electricity grid owned or operated by a utility and dedicated to
delivering electricity to customers.
Sec. 62.15903 Measurements, abbreviations, and acronyms.
Measurements, abbreviations, and acronyms used in this subpart are
defined as follows:
Btu--British thermal unit.
CO2--carbon dioxide.
H2O--water.
Hg--mercury.
hr--hour.
kW--kilowatt electrical.
kWh--kilowatt hour.
lb--pound.
MMBtu--million Btu.
MWe--megawatt electrical.
MWh--megawatt hour.
NOX--nitrogen oxides.
O2--oxygen.
ppm--parts per million.
scfh--standard cubic feet per hour.
SO2--sulfur dioxide.
yr--year.
Sec. 62.15904 Applicability.
(a) Except as provided in paragraph (b) of this section:
(1) The following units in a State shall be Hg Budget units, and
any source that includes one or more such units shall be a Hg Budget
source, subject to the requirements of this subpart: Any stationary,
coal-fired boiler or stationary, coal-fired combustion turbine serving
at any time, since the later of November 15, 1990 or the start-up of
the unit's combustion chamber, a generator with nameplate capacity of
more than 25 MWe producing electricity for sale.
(2) If a stationary boiler or stationary combustion turbine that,
under paragraph (a)(1) of this section, is not a Hg Budget unit begins
to combust coal or coal-derived fuel or to serve a generator with
nameplate capacity of more than 25 MWe producing electricity for sale,
the unit shall become a Hg Budget unit as provided in paragraph (a)(1)
of this section on the first date on which it both combusts coal or
coal-derived fuel and serves such generator.
(b) The units in a State that meet the requirements set forth in
paragraph (b)(1)(i) or (b)(2) of this section shall not be Hg Budget
units:
(1)(i) Any unit that is a Hg Budget unit under paragraph (a)(1) or
(2) of this section:
(A) Qualifying as a cogeneration unit during the 12-month period
starting on the date the unit first produces electricity and continuing
to qualify as a cogeneration unit; and
(B) Not serving at any time, since the later of November 15, 1990
or the start-up of the unit's combustion chamber, a generator with
nameplate capacity of more than 25 MWe supplying in any calendar year
more than one-third of the unit's potential electric output capacity or
219,000 MWh, whichever is greater, to any utility power distribution
system for sale.
(ii) If a unit qualifies as a cogeneration unit during the 12-month
period starting on the date the unit first produces electricity and
meets the requirements of paragraphs (b)(1)(i) of this section for at
least one calendar year, but subsequently no longer meets all such
requirements, the unit shall become a Hg Budget unit starting on the
earlier of January 1 after the first calendar year during which the
unit first no longer qualifies as a cogeneration unit or January 1
after the first calendar year during which the unit no longer meets the
requirements of paragraph (b)(1)(i)(B) of this section.
(2) Any unit that is a Hg Budget unit under paragraph (a)(1) or (2)
of this section, is a solid waste incineration unit combusting
municipal waste, and is subject to the requirements of:
(i) A State Plan approved by the Administrator in accordance with
subpart Cb of part 60 of this chapter (emissions guidelines and
compliance times for certain large municipal waste combustors);
(ii) Subpart Eb of part 60 of this chapter (standards of
performance for certain large municipal waste combustors);
(iii) Subpart AAAA of part 60 of this chapter (standards of
performance for certain small municipal waste combustors);
(iv) A State Plan approved by the Administrator in accordance with
subpart BBBB of part 60 of this chapter (emission guidelines and
compliance times for certain small municipal waste combustion units);
(v) Subpart FFF, of part 62 of this chapter (Federal Plan
requirements for certain large municipal waste combustors); or
(vi) Subpart JJJ of part 62 of this chapter (Federal Plan
requirements for certain small municipal waste combustion units).
(c) A certifying official of an owner or operator of any combustion
device may petition the Administrator at any time for a determination
concerning the applicability, under paragraphs (a) and (b) of this
section, of the Hg Budget Trading Program to the combustion device.
(1) Petition content. The petition shall be in writing and include
the identification of the combustion device and the relevant facts
about the combustion device. The petition and any other documents
provided to the Administrator in connection with the petition shall
include the following certification statement, signed by the certifying
official: ``I am authorized to make this submission on behalf of the
owners and operators of the combustion device for which the submission
is made. I certify under penalty of law that I have personally
examined, and am familiar with, the statements and information
submitted in this document and all its attachments. Based on my inquiry
of those individuals with primary responsibility for obtaining the
information, I certify that the statements and information are to the
best of my knowledge and belief true, accurate, and complete. I am
aware that there are significant penalties for submitting false
statements and information or omitting
[[Page 77133]]
required statements and information, including the possibility of fine
or imprisonment.''
(2) Submission. The petition and any other documents provided in
connection with the petition shall be submitted to the Director of the
Clean Air Markets Division (or its successor), U.S. Environmental
Protection Agency, who will act on the petition as the Administrator's
duly authorized representative.
(3) Response. The Administrator will issue a written response to
the petition and may request supplemental information relevant to such
petition. The Administrator's determination concerning the
applicability, under paragraphs (a) and (b) of this section, of the Hg
Budget Trading Program to the combustion device shall be binding on the
permitting authority unless the petition or other information or
documents provided in connection with the petition are found to have
contained significant, relevant errors or omissions.
Sec. 62.15905 Retired unit exemption.
(a)(1) Any Hg Budget unit that is permanently retired shall be
exempt from the Hg Budget Trading Program, except for the provisions of
this section, Sec. 62.15902, Sec. 62.15903, Sec. 62.15904, Sec.
62.15906(c)(4) through (7), Sec. 62.15907, Sec. 62.15908, Sec. Sec.
62.15910 through 62.15915, and Sec. Sec. 62.15940 through 62.15962.
(2) The exemption under paragraph (a)(1) of this section shall
become effective the day on which the Hg Budget unit is permanently
retired. Within 30 days of the unit's permanent retirement, the Hg
designated representative shall submit a statement to the permitting
authority otherwise responsible for administering any Hg Budget permit
for the unit and shall submit a copy of the statement to the
Administrator. The statement shall state, in a format prescribed by the
permitting authority, that the unit was permanently retired on a
specific date and will comply with the requirements of paragraph (b) of
this section.
(3) After receipt of the statement under paragraph (a)(2) of this
section, the permitting authority will amend any permit under
Sec. Sec. 62.15920 through 62.15924 covering the source at which the
unit is located to add the provisions and requirements of the exemption
under paragraphs (a)(1) and (b) of this section.
(b) Special provisions.
(1) A unit exempt under paragraph (a) of this section shall not
emit any mercury, starting on the date that the exemption takes effect.
(2) The Administrator or the permitting authority will allocate Hg
allowances under Sec. Sec. 62.15940 through 62.15943 to a unit exempt
under paragraph (a) of this section.
(3) For a period of 5 years from the date the records are created,
the owners and operators of a unit exempt under paragraph (a) of this
section shall retain, at the source that includes the unit, records
demonstrating that the unit is permanently retired. The 5-year period
for keeping records may be extended for cause, at any time before the
end of the period, in writing by the permitting authority or the
Administrator. The owners and operators bear the burden of proof that
the unit is permanently retired.
(4) The owners and operators and, to the extent applicable, the Hg
designated representative of a unit exempt under paragraph (a) of this
section shall comply with the requirements of the Hg Budget Trading
Program concerning all periods for which the exemption is not in
effect, even if such requirements arise, or must be complied with,
after the exemption takes effect.
(5) A unit exempt under paragraph (a) of this section and located
at a source that is required, or but for this exemption would be
required, to have a title V operating permit shall not resume operation
unless the Hg designated representative of the source submits a
complete Hg Budget permit application under Sec. 62.15922 for the unit
not less than 18 months (or such lesser time provided by the permitting
authority) before the later of January 1, 2010 or the date on which the
unit resumes operation.
(6) On the earlier of the following dates, a unit exempt under
paragraph (a) of this section shall lose its exemption:
(i) The date on which the Hg designated representative submits a Hg
Budget permit application for the unit under paragraph (b)(5) of this
section;
(ii) The date on which the Hg designated representative is required
under paragraph (b)(5) of this section to submit a Hg Budget permit
application for the unit; or
(iii) The date on which the unit resumes operation, if the Hg
designated representative is not required to submit a Hg Budget permit
application for the unit.
(7) For the purpose of applying monitoring, reporting, and
recordkeeping requirements under Sec. Sec. 62.15970 through 62.15975,
a unit that loses its exemption under paragraph (a) of this section
shall be treated as a unit that commences commercial operation on the
first date on which the unit resumes operation.
Sec. 62.15906 Standard requirements.
(a) Permit requirements.
(1) The Hg designated representative of each Hg Budget source
required to have a title V operating permit and each Hg Budget unit
required to have a title V operating permit at the source shall:
(i) Submit to the permitting authority a complete Hg Budget permit
application under Sec. 62.15922 in accordance with the deadlines
specified in Sec. 62.15921; and
(ii) Submit in a timely manner any supplemental information that
the permitting authority determines is necessary in order to review a
Hg Budget permit application and issue or deny a Hg Budget permit.
(2) The owners and operators of each Hg Budget source required to
have a title V operating permit and each Hg Budget unit required to
have a title V operating permit at the source shall have a Hg Budget
permit issued by the permitting authority under Sec. Sec. 62.15920
through 62.15924 for the source and operate the source and the unit in
compliance with such Hg Budget permit.
(3) The owners and operators of a Hg Budget source that is not
otherwise required to have a title V operating permit and each Hg
Budget unit that is not otherwise required to have a title V operating
permit are not required to submit a Hg Budget permit application, and
to have a Hg Budget permit, under Sec. Sec. 62.15920 through 62.15924
for such Hg Budget source and such Hg Budget unit.
(b) Monitoring, reporting, and recordkeeping requirements.
(1) The owners and operators, and the Hg designated representative,
of each Hg Budget source and each Hg Budget unit at the source shall
comply with the monitoring, reporting, and recordkeeping requirements
of Sec. Sec. 62.15970 through 62.15975.
(2) The emissions measurements recorded and reported in accordance
with Sec. Sec. 62.15970 through 62.15975 shall be used to determine
compliance by each Hg Budget source with the Hg Budget emissions
limitation under paragraph (c) of this section.
(c) Mercury emission requirements.
(1) As of the allowance transfer deadline for a control period, the
owners and operators of each Hg Budget source and each Hg Budget unit
at the source shall hold, in the source's compliance account, Hg
allowances available for compliance deductions for the control period
under Sec. 62.15954(a) in an amount not less than the ounces of total
mercury emissions for the control period from all Hg Budget units at
the source, as determined in
[[Page 77134]]
accordance with Sec. Sec. 62.15970 through 62.15975.
(2) A Hg Budget unit shall be subject to the requirements under
paragraph (c)(1) of this section for the control period starting on the
later of January 1, 2010 or the deadline for meeting the unit's monitor
certification requirements under Sec. 62.15970(b)(1) or (2) and for
each control period thereafter.
(3) A Hg allowance shall not be deducted, for compliance with the
requirements under paragraph (c)(1) of this section, for a control
period in a calendar year before the year for which the Hg allowance
was allocated.
(4) Hg allowances shall be held in, deducted from, or transferred
into or among Hg Allowance Tracking System accounts in accordance with
Sec. Sec. 62.15940 through 62.15962.
(5) A Hg allowance is a limited authorization to emit one ounce of
mercury in accordance with the Hg Budget Trading Program. No provision
of the Hg Budget Trading Program, the Hg Budget permit application, the
Hg Budget permit, or an exemption under Sec. 62.15905 and no provision
of law shall be construed to limit the authority of the United States
to terminate or limit such authorization.
(6) A Hg allowance does not constitute a property right.
(7) Upon recordation by the Administrator under Sec. Sec. 62.15940
through 62.15962, every allocation, transfer, or deduction of a Hg
allowance to or from a Hg Budget source's compliance account is
incorporated automatically in any Hg Budget permit of the source.
(d) Excess emissions requirements. If a Hg Budget source emits
mercury during any control period in excess of the Hg Budget emissions
limitation, then:
(1) The owners and operators of the source and each Hg Budget unit
at the source shall surrender the Hg allowances required for deduction
under Sec. 62.15954(d)(1) and pay any fine, penalty, or assessment or
comply with any other remedy imposed, for the same violations, under
the Clean Air Act or applicable State law; and
(2) Each ounce of such excess emissions and each day of such
control period shall constitute a separate violation of this subpart,
the Clean Air Act, and applicable State law.
(e) Recordkeeping and reporting requirements.
(1) Unless otherwise provided, the owners and operators of the Hg
Budget source and each Hg Budget unit at the source shall keep on site
at the source each of the following documents for a period of 5 years
from the date the document is created. This period may be extended for
cause, at any time before the end of 5 years, in writing by the
permitting authority or the Administrator.
(i) The certificate of representation under Sec. 62.15913 for the
Hg designated representative for the source and each Hg Budget unit at
the source and all documents that demonstrate the truth of the
statements in the certificate of representation; provided that the
certificate and documents shall be retained on site at the source
beyond such 5-year period until such documents are superseded because
of the submission of a new certificate of representation under Sec.
62.15913 changing the Hg designated representative.
(ii) All emissions monitoring information, in accordance with
Sec. Sec. 62.15970 through 62.15975, provided that to the extent that
Sec. Sec. 62.15970 through 62.15975 provides for a 3-year period for
recordkeeping, the 3-year period shall apply.
(iii) Copies of all reports, compliance certifications, and other
submissions and all records made or required under the Hg Budget
Trading Program.
(iv) Copies of all documents used to complete a Hg Budget permit
application and any other submission under the Hg Budget Trading
Program or to demonstrate compliance with the requirements of the Hg
Budget Trading Program.
(2) The Hg designated representative of a Hg Budget source and each
Hg Budget unit at the source shall submit the reports required under
the Hg Budget Trading Program, including those under Sec. Sec.
62.15970 through 62.15975.
(f) Liability.
(1) Each Hg Budget source and each Hg Budget unit shall meet the
requirements of the Hg Budget Trading Program.
(2) Any provision of the Hg Budget Trading Program that applies to
a Hg Budget source or the Hg designated representative of a Hg Budget
source shall also apply to the owners and operators of such source and
of the Hg Budget units at the source.
(3) Any provision of the Hg Budget Trading Program that applies to
a Hg Budget unit or the Hg designated representative of a Hg Budget
unit shall also apply to the owners and operators of such unit.
(g) Effect on other authorities. No provision of the Hg Budget
Trading Program, a Hg Budget permit application, a Hg Budget permit, or
an exemption under Sec. 62.15905 shall be construed as exempting or
excluding the owners and operators, and the Hg designated
representative, of a Hg Budget source or Hg Budget unit from compliance
with any other provision of the applicable, approved State
implementation plan, a Federally enforceable permit, or the Clean Air
Act.
Sec. 62.15907 Computation of time.
(a) Unless otherwise stated, any time period scheduled, under the
Hg Budget Trading Program, to begin on the occurrence of an act or
event shall begin on the day the act or event occurs.
(b) Unless otherwise stated, any time period scheduled, under the
Hg Budget Trading Program, to begin before the occurrence of an act or
event shall be computed so that the period ends the day before the act
or event occurs.
(c) Unless otherwise stated, if the final day of any time period,
under the Hg Budget Trading Program, falls on a weekend or a State or
Federal holiday, the time period shall be extended to the next business
day.
Sec. 62.15908 Appeal procedures.
The appeal procedures for decisions of the Administrator under the
Hg Budget Trading Program are set forth in part 78 of this chapter.
Hg Designated Representative for Hg Budget Sources
Sec. 62.15910 Authorization and responsibilities of Hg designated
representative.
(a) Except as provided under Sec. 62.15911, each Hg Budget source,
including all Hg Budget units at the source, shall have one and only
one Hg designated representative, with regard to all matters under the
Hg Budget Trading Program concerning the source or any Hg Budget unit
at the source.
(b) The Hg designated representative of the Hg Budget source shall
be selected by an agreement binding on the owners and operators of the
source and all Hg Budget units at the source and shall act in
accordance with the certification statement in Sec.
62.15913(a)(4)(iv).
(c) Upon receipt by the Administrator of a complete certificate of
representation under Sec. 62.15913, the Hg designated representative
of the source shall represent and, by his or her representations,
actions, inactions, or submissions, legally bind each owner and
operator of the Hg Budget source represented and each Hg Budget unit at
the source in all matters pertaining to the Hg Budget Trading Program,
notwithstanding any agreement between the Hg designated representative
and such owners and operators. The owners
[[Page 77135]]
and operators shall be bound by any decision or order issued to the Hg
designated representative by the permitting authority, the
Administrator, or a court regarding the source or unit.
(d) No Hg Budget permit will be issued, no emissions data reports
will be accepted, and no Hg Allowance Tracking System account will be
established for a Hg Budget unit at a source, until the Administrator
has received a complete certificate of representation under Sec.
62.15913 for a Hg designated representative of the source and the Hg
Budget units at the source.
(e)(1) Each submission under the Hg Budget Trading Program shall be
submitted, signed, and certified by the Hg designated representative
for each Hg Budget source on behalf of which the submission is made.
Each such submission shall include the following certification
statement by the Hg designated representative: ``I am authorized to
make this submission on behalf of the owners and operators of the
source or units for which the submission is made. I certify under
penalty of law that I have personally examined, and am familiar with,
the statements and information submitted in this document and all its
attachments. Based on my inquiry of those individuals with primary
responsibility for obtaining the information, I certify that the
statements and information are to the best of my knowledge and belief
true, accurate, and complete. I am aware that there are significant
penalties for submitting false statements and information or omitting
required statements and information, including the possibility of fine
or imprisonment.''
(2) The permitting authority and the Administrator will accept or
act on a submission made on behalf of owners or operators of a Hg
Budget source or a Hg Budget unit only if the submission has been made,
signed, and certified in accordance with paragraph (e)(1) of this
section.
Sec. 62.15911 Alternate Hg designated representative.
(a) A certificate of representation under Sec. 62.15913 may
designate one and only one alternate Hg designated representative, who
may act on behalf of the Hg designated representative. The agreement by
which the alternate Hg designated representative is selected shall
include a procedure for authorizing the alternate Hg designated
representative to act in lieu of the Hg designated representative.
(b) Upon receipt by the Administrator of a complete certificate of
representation under Sec. 62.15913, any representation, action,
inaction, or submission by the alternate Hg designated representative
shall be deemed to be a representation, action, inaction, or submission
by the Hg designated representative.
(c) Except in this section and Sec. Sec. 62.15902, 62.15910(a) and
(d), 62.15912, 62.15913, 62.15915, and 62.15951, whenever the term ``Hg
designated representative'' is used in this subpart, the term shall be
construed to include the Hg designated representative or any alternate
Hg designated representative.
Sec. 62.15912 Changing Hg designated representative and alternate Hg
designated representative; changes in owners and operators.
(a) Changing Hg designated representative. The Hg designated
representative may be changed at any time upon receipt by the
Administrator of a superseding complete certificate of representation
under Sec. 62.15913. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous Hg
designated representative before the time and date when the
Administrator receives the superseding certificate of representation
shall be binding on the new Hg designated representative and the owners
and operators of the Hg Budget source and the Hg Budget units at the
source.
(b) Changing alternate Hg designated representative. The alternate
Hg designated representative may be changed at any time upon receipt by
the Administrator of a superseding complete certificate of
representation under Sec. 62.15913. Notwithstanding any such change,
all representations, actions, inactions, and submissions by the
previous alternate Hg designated representative before the time and
date when the Administrator receives the superseding certificate of
representation shall be binding on the new alternate Hg designated
representative and the owners and operators of the Hg Budget source and
the Hg Budget units at the source.
(c) Changes in owners and operators.
(1) In the event a owner or operator of a Hg Budget source or a Hg
Budget unit is not included in the list of owners and operators in the
certificate of representation under Sec. 62.15913, such owner or
operator shall be deemed to be subject to and bound by the certificate
of representation, the representations, actions, inactions, and
submissions of the Hg designated representative and any alternate Hg
designated representative of the source or unit, and the decisions and
orders of the permitting authority, the Administrator, or a court, as
if the owner or operator were included in such list.
(2) Within 30 days following any change in the owners and operators
of a Hg Budget source or a Hg Budget unit, including the addition of a
new owner or operator, the Hg designated representative or any
alternate Hg designated representative shall submit a revision to the
certificate of representation under Sec. 62.15913 amending the list of
owners and operators to include the change.
Sec. 62.15913 Certificate of representation.
(a) A complete certificate of representation for a Hg designated
representative or an alternate Hg designated representative shall
include the following elements in a format prescribed by the
Administrator:
(1) Identification of the Hg Budget source, and each Hg Budget unit
at the source, for which the certificate of representation is
submitted, including identification and nameplate capacity of each
generator served by each such unit.
(2) The name, address, e-mail address (if any), telephone number,
and facsimile transmission number (if any) of the Hg designated
representative and any alternate Hg designated representative.
(3) A list of the owners and operators of the Hg Budget source and
of each Hg Budget unit at the source.
(4) The following certification statements by the Hg designated
representative and any alternate Hg designated representative:
(i) ``I certify that I was selected as the Hg designated
representative or alternate Hg designated representative, as
applicable, by an agreement binding on the owners and operators of the
source and each Hg Budget unit at the source.''
(ii) ``I certify that I have all the necessary authority to carry
out my duties and responsibilities under the Hg Budget Trading Program
on behalf of the owners and operators of the source and of each Hg
Budget unit at the source and that each such owner and operator shall
be fully bound by my representations, actions, inactions, or
submissions.''
(iii) ``I certify that the owners and operators of the source and
of each Hg Budget unit at the source shall be bound by any order issued
to me by the Administrator, the permitting authority, or a court
regarding the source or unit.''
(iv) ``Where there are multiple holders of a legal or equitable
title to, or a leasehold interest in, a Hg Budget unit, or where a
utility or industrial customer purchases power from a Hg Budget unit
under a life-of-the-unit, firm power
[[Page 77136]]
contractual arrangement, I certify that: I have given a written notice
of my selection as the `Hg designated representative' or `alternate Hg
designated representative,' as applicable, and of the agreement by
which I was selected to each owner and operator of the source and of
each Hg Budget unit at the source; and Hg allowances and proceeds of
transactions involving Hg allowances will be deemed to be held or
distributed in proportion to each holder's legal, equitable, leasehold,
or contractual reservation or entitlement, except that, if such
multiple holders have expressly provided for a different distribution
of Hg allowances by contract, Hg allowances and proceeds of
transactions involving Hg allowances will be deemed to be held or
distributed in accordance with the contract.''
(5) The signature of the Hg designated representative and any
alternate Hg designated representative and the dates signed.
(b) Unless otherwise required by the permitting authority or the
Administrator, documents of agreement referred to in the certificate of
representation shall not be submitted to the permitting authority or
the Administrator. Neither the permitting authority nor the
Administrator shall be under any obligation to review or evaluate the
sufficiency of such documents, if submitted.
Sec. 62.15914 Objections concerning Hg designated representative.
(a) Once a complete certificate of representation under Sec.
62.15913 has been submitted and received, the permitting authority and
the Administrator will rely on the certificate of representation unless
and until a superseding complete certificate of representation under
Sec. 62.15913 is received by the Administrator.
(b) Except as provided in Sec. 62.15912(a) or (b), no objection or
other communication submitted to the permitting authority or the
Administrator concerning the authorization, or any representation,
action, inaction, or submission, of the Hg designated representative
shall affect any representation, action, inaction, or submission of the
Hg designated representative or the finality of any decision or order
by the permitting authority or the Administrator under the Hg Budget
Trading Program.
(c) Neither the permitting authority nor the Administrator will
adjudicate any private legal dispute concerning the authorization or
any representation, action, inaction, or submission of any Hg
designated representative, including private legal disputes concerning
the proceeds of Hg allowance transfers.
Sec. 62.15915 Delegation by Hg designated representative and
alternate Hg designated representative.
(a) A Hg designated representative may delegate, to one or more
natural persons, his or her authority to make an electronic submission
to the Administrator provided for or required under this subpart.
(b) An alternate Hg designated representative may delegate, to one
or more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
subpart.
(c) In order to delegate authority to make an electronic submission
to the Administrator in accordance with paragraph (a) or (b) of this
section, the Hg designated representative or alternate Hg designated
representative, as appropriate, must submit to the Administrator a
notice of delegation, in a format prescribed by the Administrator, that
includes the following elements:
(1) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg designated
representative or alternate Hg designated representative;
(2) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(3) For each such natural person, a list of the type or types of
electronic submissions under paragraph (a) or (b) of this section for
which authority is delegated to him or her; and
(4) The following certification statements by such Hg designated
representative or alternate Hg designated representative:
(i) ``I agree that any electronic submission to the Administrator
that is by an agent identified in this notice of delegation and of a
type listed for such agent in this notice of delegation and that is
made when I am a Hg designated representative or alternate Hg
designated representative, as appropriate, and before this notice of
delegation is superseded by another notice of delegation under 40 CFR
62.15915(d) shall be deemed to be an electronic submission by me.''
(ii) ``Until this notice of delegation is superseded by another
notice of delegation under 40 CFR 62.15915(d), I agree to maintain an
e-mail account and to notify the Administrator immediately of any
change in my e-mail address, unless all delegation of authority by me
under 40 CFR 62.15915 is terminated.''
(d) A notice of delegation submitted under paragraph (c) of this
section shall be effective, with regard to the Hg designated
representative or alternate Hg designated representative identified in
such notice, upon receipt of such notice by the Administrator and until
receipt by the Administrator of a superseding notice of delegation
submitted by such Hg designated representative or alternate Hg
designated representative, as appropriate. The superseding notice of
delegation may replace any previously identified agent, add a new
agent, or eliminate entirely any delegation of authority.
(e) Any electronic submission covered by the certification in
paragraph (c)(4)(i) of this section and made in accordance with a
notice of delegation effective under paragraph (d) of this section
shall be deemed to be an electronic submission by the Hg designated
representative or alternate Hg designated representative submitting
such notice of delegation.
Permits
Sec. 62.15920 General Hg budget trading program permit requirements.
(a) For each Hg Budget source required to have a title V operating
permit, such permit shall include a Hg Budget permit administered by
the permitting authority for the title V operating permit. The Hg
Budget portion of the title V permit shall be administered in
accordance with the permitting authority's title V operating permits
regulations promulgated under part 70 or 71 of this chapter, except as
provided otherwise by paragraph (b) of this section, Sec. 62.15905,
and Sec. Sec. 62.15921 through 62.15924.
(b) Each Hg Budget permit shall contain, with regard to the Hg
Budget source and the Hg Budget units at the source covered by the Hg
Budget permit, all applicable Hg Budget Trading Program requirements
and shall be a complete and separable portion of the title V operating
permit.
Sec. 62.15921 Submission of Hg budget permit applications.
(a) Duty to apply. The Hg designated representative of any Hg
Budget source required to have a title V operating permit shall submit
to the permitting authority a complete Hg Budget permit application
under Sec. 62.15922 for the source covering each Hg Budget unit at the
source at least 18 months (or such lesser time provided by the
permitting authority) before the later of January 1, 2010 or the date
on which the Hg
[[Page 77137]]
Budget unit commences commercial operation.
(b) Duty to reapply. For a Hg Budget source required to have a
title V operating permit, the Hg designated representative shall submit
a complete Hg Budget permit application under Sec. 62.15922 for the
source covering each Hg Budget unit at the source to renew the Hg
Budget permit in accordance with the permitting authority's title V
operating permits regulations addressing permit renewal.
Sec. 62.15922 Information requirements for Hg budget permit
applications.
A complete Hg Budget permit application shall include the following
elements concerning the Hg Budget source for which the application is
submitted, in a format prescribed by the permitting authority:
(a) Identification of the Hg Budget source;
(b) Identification of each Hg Budget unit at the Hg Budget source;
and
(c) The standard requirements under Sec. 62.15906.
Sec. 62.15923 Hg budget permit contents and term.
(a) Each Hg Budget permit will contain, in a format prescribed by
the permitting authority, all elements required for a complete Hg
Budget permit application under Sec. 62.15922.
(b) Each Hg Budget permit is deemed to incorporate automatically
the definitions of terms under Sec. 62.15902 and, upon recordation by
the Administrator under Sec. Sec. 62.15940 through 62.15962, every
allocation, transfer, or deduction of a Hg allowance to or from the
compliance account of the Hg Budget source covered by the permit.
(c) The term of the Hg Budget permit will be set by the permitting
authority, as necessary to facilitate coordination of the renewal of
the Hg Budget permit with issuance, revision, or renewal of the Hg
Budget source's title V operating permit.
Sec. 62.15924 Hg budget permit revisions.
Except as provided in Sec. 62.15923(b), the permitting authority
will revise the Hg Budget permit, as necessary, in accordance with the
permitting authority's title V operating permits regulations addressing
permit revisions.
Sec. 62.15930 [Reserved].
Hg Allowance Allocations
Sec. 62.15940 State trading budgets.
The State trading budgets for annual allocations of Hg allowances
for the control periods in 2010 through 2017 and in 2018 and thereafter
are respectively as follows:
------------------------------------------------------------------------
State trading budget (tons)
-------------------------------------
State 2018 and
2010-2017 thereafter
------------------------------------------------------------------------
Alaska............................ 0.010 0.004
Alabama........................... 1.289 0.509
Arkansas.......................... 0.516 0.204
Arizona........................... 0.454 0.179
California........................ 0.041 0.016
Colorado.......................... 0.706 0.279
Connecticut....................... 0.053 0.021
Delaware.......................... 0.072 0.028
District of Columbia.............. 0 0
Florida........................... 1.232 0.487
Georgia........................... 1.227 0.484
Hawaii............................ 0.024 0.009
Idaho............................. 0 0
Iowa.............................. 0.727 0.287
Illinois.......................... 1.594 0.629
Indiana........................... 2.097 0.828
Kansas............................ 0.723 0.285
Kentucky.......................... 1.525 0.602
Louisiana......................... 0.601 0.237
Massachusetts..................... 0.172 0.068
Maryland.......................... 0.49 0.193
Maine............................. 0.001 0.001
Michigan.......................... 1.303 0.514
Minnesota......................... 0.695 0.274
Missouri.......................... 1.393 0.550
Mississippi....................... 0.291 0.115
Montana........................... 0.377 0.149
Navajo Nation Indian Country...... 0.600 0.237
North Carolina.................... 1.133 0.447
North Dakota...................... 1.564 0.617
Nebraska.......................... 0.421 0.166
New Hampshire..................... 0.063 0.025
New Jersey........................ 0.153 0.060
New Mexico........................ 0.299 0.118
Nevada............................ 0.285 0.112
New York.......................... 0.393 0.155
Ohio.............................. 2.057 0.812
Oklahoma.......................... 0.721 0.285
Oregon............................ 0.076 0.030
Pennsylvania...................... 1.779 0.702
Rhode Island...................... 0 0
South Carolina.................... 0.58 0.229
South Dakota...................... 0.072 0.029
Tennessee......................... 0.944 0.373
[[Page 77138]]
Texas............................. 4.656 1.838
Utah.............................. 0.506 0.200
Ute Indian Tribe Reservation 0.060 0.024
Indian Country...................
Virginia.......................... 0.592 0.234
Vermont........................... 0 0
Washington........................ 0.198 0.078
Wisconsin......................... 0.89 0.351
West Virginia..................... 1.394 0.550
Wyoming........................... 0.952 0.376
------------------------------------------------------------------------
Sec. 62.15941 Timing requirements for Hg allowance allocations.
(a) The Administrator will determine by order the Hg allowance
allocations, in accordance with Sec. 62.15942(a) and (b), for the
control periods in 2010, 2011, 2012, 2013, and 2014.
(b) By July 31, 2011 and July 31 of each year thereafter, the
Administrator will determine by order the Hg allowance allocations, in
accordance with Sec. 62.15942(a) and (b), for the control period in
the fourth year after the year of the applicable deadline for
determination under this paragraph.
(c) By July 31, 2010 and July 31 of each year thereafter, the
Administrator will determine by order the Hg allowance allocations, in
accordance with Sec. 62.15942(a), (c), and (d), for the control period
in the year of the applicable deadline for determination under this
paragraph.
(d) The Administrator will make available to the public each
determination of Hg allowances under paragraph (a), (b), or (c) of this
section and will provide an opportunity for submission of objections to
the determination. Objections shall be limited to addressing whether
the determination is in accordance with Sec. 62.15942. Based on any
such objections, the Administrator will adjust each determination to
the extent necessary to ensure that it is in accordance with Sec.
62.15942.
Sec. 62.15942 Hg allowance allocations.
(a)(1) The baseline heat input (in MMBtu) used with respect to Hg
allowance allocations under paragraph (b) of this section for each Hg
Budget unit will be:
(i) For units commencing operation before January 1, 2001, the
average of the three highest amounts of the unit's adjusted control
period heat input for 2000 through 2004, with the adjusted control
period heat input for each year calculated as the sum of the following:
(A) Any portion of the unit's control period heat input for the
year that results from the unit's combustion of lignite, multiplied by
3.0;
(B) Any portion of the unit's control period heat input for the
year that results from the unit's combustion of subbituminous coal,
multiplied by 1.25; and
(C) Any portion of the unit's control period heat input for the
year that is not covered by paragraph (a)(1)(i)(A) or (B) of this
section, multiplied by 1.0.
(ii) For units commencing operation on or after January 1, 2001 and
operating each calendar year during a period of 5 or more consecutive
calendar years, the average of the 3 highest amounts of the unit's
total converted control period heat input over the first such 5 years.
(2)(i) A unit's control period heat input for a calendar year under
paragraph (a)(1)(i) of this section, and a unit's total ounces of Hg
emissions during a calendar year under paragraph (c)(3) of this
section, will be determined in accordance with part 75 of this chapter,
to the extent the unit was otherwise subject to the requirements of
part 75 of this chapter for the year, or will be based on the best
available data reported to the Administrator for the unit, to the
extent the unit was not otherwise subject to the requirements of part
75 of this chapter for the year. The unit's types and amounts of fuel
combusted, under paragraph (a)(1)(i) of this section, will be based on
the best available data reported to the Administrator for the unit.
(ii) A unit's converted control period heat input for a calendar
year specified under paragraph (a)(1)(ii) of this section equals:
(A) Except as provided in paragraph (a)(2)(ii)(B) or (C) of this
section, the control period gross electrical output of the generator or
generators served by the unit multiplied by 7,900 Btu/kWh and divided
by 1,000,000 Btu/MMBtu, provided that if a generator is served by 2 or
more units, then the gross electrical output of the generator will be
attributed to each unit in proportion to the unit's share of the total
control period heat input of such units for the year;
(B) For a unit that is a boiler and has equipment used to produce
electricity and useful thermal energy for industrial, commercial,
heating, or cooling purposes through the sequential use of energy, the
total heat energy (in Btu) of the steam produced by the boiler during
the control period, divided by 0.8 and by 1,000,000 Btu/MMBtu; or
(C) For a unit that is a combustion turbine and has equipment used
to produce electricity and useful thermal energy for industrial,
commercial, heating, or cooling purposes through the sequential use of
energy, the control period gross electrical output of the enclosed
device comprising the compressor, combustor, and turbine multiplied by
3,413 Btu/kWh, plus the total heat energy (in Btu) of the steam
produced by any associated heat recovery steam generator during the
control period divided by 0.8, and with the sum divided by 1,000,000
Btu/MMBtu.
(iii) Gross electrical output and total heat energy under paragraph
(a)(2)(ii) of this section will be determined based on the best
available data reported to the Administrator.
(3) The Administrator will determine what data are the best
available data under paragraph (a)(2) of this section by weighing the
likelihood that data are accurate and reliable and giving greater
weight to data submitted to a governmental entity in compliance with
legal requirements or substantiated by an independent entity.
(b)(1) For each control period in 2010 and thereafter, the
Administrator will allocate to all Hg Budget units in a State that have
a baseline heat input (as determined under paragraph (a) of this
section) a total amount of Hg allowances equal to 95 percent for a
control period in 2010 through 2014, and 97 percent for a control
period in 2015 and thereafter, of the amount of ounces (i.e., tons
multiplied by 32,000 ounces/ton)
[[Page 77139]]
of Hg emissions in the applicable State trading budget under Sec.
62.15940 (except as provided in paragraph (d) of this section).
(2) The Administrator will allocate Hg allowances to each Hg Budget
unit under paragraph (b)(1) of this section in an amount determined by
multiplying the total amount of Hg allowances allocated under paragraph
(b)(1) of this section by the ratio of the baseline heat input of such
Hg Budget unit to the total amount of baseline heat input of all such
Hg Budget units in the State and rounding to the nearest whole
allowance as appropriate.
(c) For each control period in 2009 and thereafter, the
Administrator will allocate Hg allowances to Hg Budget units in a State
that are not allocated Hg allowances under paragraph (b) of this
section because the units do not yet have a baseline heat input under
paragraph (a) of this section or because the units have a baseline heat
input but all Hg allowances available under paragraph (b) of this
section for the control period are already allocated, in accordance
with the following procedures:
(1) The Administrator will establish a separate new unit set-aside
for each control period. Each new unit set-aside will be allocated Hg
allowances equal to 5 percent for a control period in 2010 through
2014, and 3 percent for a control period in 2015 and thereafter, of the
amount of ounces (i.e., tons multiplied by 32,000 ounces/ton) of Hg
emissions in the applicable State trading budget under Sec. 62.15940.
(2) The Hg designated representative of such a Hg Budget unit may
submit to the Administrator a request, in a format specified by the
Administrator, to be allocated Hg allowances, starting with the later
of the control period in 2010 or the first control period after the
control period in which the Hg Budget unit commences commercial
operation and until the first control period for which the unit is
allocated Hg allowances under paragraph (b) of this section. A separate
Hg allowance allocation request for each control period for which Hg
allowances are sought must be submitted on or before May 1 of such
control period and after the date on which the Hg Budget unit commences
commercial operation.
(3) In a Hg allowance allocation request under paragraph (c)(2) of
this section, the Hg designated representative may request for a
control period Hg allowances in an amount not exceeding the Hg Budget
unit's total ounces of Hg emissions during the calendar year
immediately before such control period.
(4) The Administrator will review each Hg allowance allocation
request under paragraph (c)(2) of this section and will allocate Hg
allowances for each control period pursuant to such request as follows:
(i) The Administrator will accept an allowance allocation request
only if the request meets, or is adjusted by the Administrator as
necessary to meet, the requirements of paragraphs (c)(2) and (3) of
this section.
(ii) On or after May 1 of the control period, the Administrator
will determine the sum of the Hg allowances requested (as adjusted
under paragraph (c)(4)(i) of this section) in all allowance allocation
requests accepted under paragraph (c)(4)(i) of this section for the
control period.
(iii) If the amount of Hg allowances in the new unit set-aside for
the control period is greater than or equal to the sum under paragraph
(c)(4)(ii) of this section, then the Administrator will allocate the
amount of Hg allowances requested (as adjusted under paragraph
(c)(4)(i) of this section) to each Hg Budget unit covered by an
allowance allocation request accepted under paragraph (c)(4)(i) of this
section.
(iv) If the amount of Hg allowances in the new unit set-aside for
the control period is less than the sum under paragraph (c)(4)(ii) of
this section, then the Administrator will allocate to each Hg Budget
unit covered by an allowance allocation request accepted under
paragraph (c)(4)(i) of this section the amount of the Hg allowances
requested (as adjusted under paragraph (c)(4)(i) of this section),
multiplied by the amount of Hg allowances in the new unit set-aside for
the control period, divided by the sum determined under paragraph
(c)(4)(ii) of this section, and rounded to the nearest whole allowance
as appropriate.
(v) The Administrator will notify each Hg designated representative
that submitted an allowance allocation request of the amount of Hg
allowances (if any) allocated for the control period to the Hg Budget
unit covered by the request.
(d) If, after completion of the procedures under paragraph (c)(4)
of this section for a control period, any unallocated Hg allowances
remain in the new unit set-aside under paragraph (c) for a State for
the control period, the Administrator will allocate to each Hg Budget
unit that was allocated Hg allowances under paragraph (b) of this
section in the State an amount of Hg allowances equal to the total
amount of such remaining unallocated Hg allowances, multiplied by the
unit's allocation under paragraph (b) of this section, divided by 95
percent for a control period in 2010 through 2014, and 97 percent for a
control period in 2015 and thereafter, of the amount of ounces (i.e.,
tons multiplied by 32,000 ounces/ton) of Hg emissions in the applicable
State trading budget under Sec. 62.15940, and rounded to the nearest
whole allowance as appropriate.
(e) If the Administrator determines that Hg allowances were
allocated under paragraphs (a) and (b) of this section, paragraphs (a)
and (c) of this section, or paragraph (d) of this section for a control
period and that the recipient of the allocation is not actually a Hg
Budget unit under Sec. 62.15904 in such control period, then the
Administrator will notify the Hg designated representative and will act
in accordance with the following procedures:
(1) Except as provided in paragraph (e)(2) or (3) of this section,
the Administrator will not record such Hg allowances under Sec.
62.15953.
(2) If the Administrator already recorded such Hg allowances under
Sec. 62.15953 and if the Administrator makes such determination before
making deductions for the source that includes such recipient under
Sec. 62.15954(b) for the control period, then the Administrator will
deduct from the account in which such Hg allowances were recorded under
Sec. 62.15953 an amount of Hg allowances allocated for the same or a
prior control period equal to the amount of such already recorded Hg
allowances. The Hg authorized account representative shall ensure that
there are sufficient Hg allowances in such account for completion of
the deduction.
(3) If the Administrator already recorded such Hg allowances under
Sec. 62.15953 and if the Administrator makes such determination after
making deductions for the source that includes such recipient under
Sec. 62.15954(b) for the control period, then the Administrator will
apply paragraph (e)(1) or (2) of this section, as appropriate, to any
subsequent control period for which Hg allowances were allocated to
such recipient.
(4) The Administrator will transfer the Hg allowances that are not
recorded, or that are deducted, in accordance with paragraphs (e)(1),
(2), and (3) of this section to a new unit set-aside for the State in
which such recipient is located.
Sec. 62.15943 Alternative of allocation of Hg allowances by
permitting authority.
(a) Notwithstanding Sec. Sec. 62.15941, 62.15942, and 62.15953 if
a State submits, and the Administrator approves, a State allocation
[[Page 77140]]
methodology in accordance with Sec. 60.24(h)(9) of this chapter
providing for allocation of Hg allowances for any control period by the
permitting authority, then, for each such control period:
(1) The permitting authority shall make such allocations in
accordance with such approved State allocation methodology;
(2) The Administrator will not make allocations under Sec. Sec.
62.15941 and 62.15942 for the Hg Budget units in the State; and
(3) Under Sec. 62.15953, the Administrator will record the
allocations made under such approved State allocation methodology
instead of allocations under Sec. Sec. 62.15941 and 62.15942.
(b) In implementing paragraph (a) of this section and Sec. Sec.
62.15941, 62.15942, and 62.15953, the Administrator will ensure that
the total amount of Hg allowances allocated, under such provisions and
under a State's State allocation methodology approved in accordance
with Sec. 60.24(h)(9) of this chapter, for a control period for Hg
Budget sources in the State or for other entities specified by the
permitting authority will not exceed the State's State trading budget
for the year of the control period.
Hg Allowance Tracking System
Sec. 62.15950 [Reserved]
Sec. 62.15951 Establishment of accounts.
(a) Compliance accounts. Upon receipt of a complete certificate of
representation under Sec. 62.15913, the Administrator will establish a
compliance account for the Hg Budget source for which the certificate
of representation was submitted unless the source already has a
compliance account.
(b) General accounts.
(1) Application for general account.
(i) Any person may apply to open a general account for the purpose
of holding and transferring Hg allowances. An application for a general
account may designate one and only one Hg authorized account
representative and one and only one alternate Hg authorized account
representative who may act on behalf of the Hg authorized account
representative. The agreement by which the alternate Hg authorized
account representative is selected shall include a procedure for
authorizing the alternate Hg authorized account representative to act
in lieu of the Hg authorized account representative.
(ii) A complete application for a general account shall be
submitted to the Administrator and shall include the following elements
in a format prescribed by the Administrator:
(A) Name, mailing address, e-mail address (if any), telephone
number, and facsimile transmission number (if any) of the Hg authorized
account representative and any alternate Hg authorized account
representative;
(B) Organization name and type of organization, if applicable;
(C) A list of all persons subject to a binding agreement for the Hg
authorized account representative and any alternate Hg authorized
account representative to represent their ownership interest with
respect to the Hg allowances held in the general account;
(D) The following certification statement by the Hg authorized
account representative and any alternate Hg authorized account
representative: ``I certify that I was selected as the Hg authorized
account representative or the alternate Hg authorized account
representative, as applicable, by an agreement that is binding on all
persons who have an ownership interest with respect to Hg allowances
held in the general account. I certify that I have all the necessary
authority to carry out my duties and responsibilities under the Hg
Budget Trading Program on behalf of such persons and that each such
person shall be fully bound by my representations, actions, inactions,
or submissions and by any order or decision issued to me by the
Administrator or a court regarding the general account.''
(E) The signature of the Hg authorized account representative and
any alternate Hg authorized account representative and the dates
signed.
(iii) Unless otherwise required by the permitting authority or the
Administrator, documents of agreement referred to in the application
for a general account shall not be submitted to the permitting
authority or the Administrator. Neither the permitting authority nor
the Administrator shall be under any obligation to review or evaluate
the sufficiency of such documents, if submitted.
(2) Authorization of Hg authorized account representative and
alternate Hg authorized account representative.
(i) Upon receipt by the Administrator of a complete application for
a general account under paragraph (b)(1) of this section:
(A) The Administrator will establish a general account for the
person or persons for whom the application is submitted.
(B) The Hg authorized account representative and any alternate Hg
authorized account representative for the general account shall
represent and, by his or her representations, actions, inactions, or
submissions, legally bind each person who has an ownership interest
with respect to Hg allowances held in the general account in all
matters pertaining to the Hg Budget Trading Program, notwithstanding
any agreement between the Hg authorized account representative or any
alternate Hg authorized account representative and such person. Any
such person shall be bound by any order or decision issued to the Hg
authorized account representative or any alternate Hg authorized
account representative by the Administrator or a court regarding the
general account.
(C) Any representation, action, inaction, or submission by any
alternate Hg authorized account representative shall be deemed to be a
representation, action, inaction, or submission by the Hg authorized
account representative.
(ii) Each submission concerning the general account shall be
submitted, signed, and certified by the Hg authorized account
representative or any alternate Hg authorized account representative
for the persons having an ownership interest with respect to Hg
allowances held in the general account. Each such submission shall
include the following certification statement by the Hg authorized
account representative or any alternate Hg authorized account
representative: ``I am authorized to make this submission on behalf of
the persons having an ownership interest with respect to the Hg
allowances held in the general account. I certify under penalty of law
that I have personally examined, and am familiar with, the statements
and information submitted in this document and all its attachments.
Based on my inquiry of those individuals with primary responsibility
for obtaining the information, I certify that the statements and
information are to the best of my knowledge and belief true, accurate,
and complete. I am aware that there are significant penalties for
submitting false statements and information or omitting required
statements and information, including the possibility of fine or
imprisonment.''
(iii) The Administrator will accept or act on a submission
concerning the general account only if the submission has been made,
signed, and certified in accordance with paragraph (b)(2)(ii) of this
section.
(3) Changing Hg authorized account representative and alternate Hg
authorized account representative; changes in persons with ownership
interest.
(i) The Hg authorized account representative for a general account
may
[[Page 77141]]
be changed at any time upon receipt by the Administrator of a
superseding complete application for a general account under paragraph
(b)(1) of this section. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous Hg
authorized account representative before the time and date when the
Administrator receives the superseding application for a general
account shall be binding on the new Hg authorized account
representative and the persons with an ownership interest with respect
to the Hg allowances in the general account.
(ii) The alternate Hg authorized account representative for a
general account may be changed at any time upon receipt by the
Administrator of a superseding complete application for a general
account under paragraph (b)(1) of this section. Notwithstanding any
such change, all representations, actions, inactions, and submissions
by the previous alternate Hg authorized account representative before
the time and date when the Administrator receives the superseding
application for a general account shall be binding on the new alternate
Hg authorized account representative and the persons with an ownership
interest with respect to the Hg allowances in the general account.
(iii)(A) In the event a person having an ownership interest with
respect to Hg allowances in the general account is not included in the
list of such persons in the application for a general account, such
person shall be deemed to be subject to and bound by the application
for a general account, the representation, actions, inactions, and
submissions of the Hg authorized account representative and any
alternate Hg authorized account representative of the account, and the
decisions and orders of the Administrator or a court, as if the person
were included in such list.
(B) Within 30 days following any change in the persons having an
ownership interest with respect to Hg allowances in the general
account, including the addition of a new person, the Hg authorized
account representative or any alternate Hg authorized account
representative shall submit a revision to the application for a general
account amending the list of persons having an ownership interest with
respect to the Hg allowances in the general account to include the
change.
(4) Objections concerning Hg authorized account representative and
alternate Hg authorized account representative.
(i) Once a complete application for a general account under
paragraph (b)(1) of this section has been submitted and received, the
Administrator will rely on the application unless and until a
superseding complete application for a general account under paragraph
(b)(1) of this section is received by the Administrator.
(ii) Except as provided in paragraph (b)(3)(i) or (ii) of this
section, no objection or other communication submitted to the
Administrator concerning the authorization, or any representation,
action, inaction, or submission of the Hg authorized account
representative or any alternate Hg authorized account representative
for a general account shall affect any representation, action,
inaction, or submission of the Hg authorized account representative or
any alternate Hg authorized account representative or the finality of
any decision or order by the Administrator under the Hg Budget Trading
Program.
(iii) The Administrator will not adjudicate any private legal
dispute concerning the authorization or any representation, action,
inaction, or submission of the Hg authorized account representative or
any alternate Hg authorized account representative for a general
account, including private legal disputes concerning the proceeds of Hg
allowance transfers.
(5) Delegation by Hg authorized account representative and
alternate Hg authorized account representative.
(i) A Hg authorized account representative may delegate, to one or
more natural persons, his or her authority to make an electronic
submission to the Administrator provided for or required under this
section and Sec. Sec. 62.15952 through 62.15962.
(ii) An alternate Hg authorized account representative may
delegate, to one or more natural persons, his or her authority to make
an electronic submission to the Administrator provided for or required
under this section and Sec. Sec. 62.15952 through 62.15962.
(iii) In order to delegate authority to make an electronic
submission to the Administrator in accordance with paragraph (b)(5)(i)
or (ii) of this section, the Hg authorized account representative or
alternate Hg authorized account representative, as appropriate, must
submit to the Administrator a notice of delegation, in a format
prescribed by the Administrator, that includes the following elements:
(A) The name, address, e-mail address, telephone number, and
facsimile transmission number (if any) of such Hg authorized account
representative or alternate Hg authorized account representative;
(B) The name, address, e-mail address, telephone number, and,
facsimile transmission number (if any) of each such natural person
(referred to as an ``agent'');
(C) For each such natural person, a list of the type or types of
electronic submissions under paragraph (b)(5)(i) or (ii) of this
section for which authority is delegated to him or her;
(D) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``I agree that any electronic submission to the
Administrator that is by an agent identified in this notice of
delegation and of a type listed for such agent in this notice of
delegation and that is made when I am a Hg authorized account
representative or alternate Hg authorized representative, as
appropriate, and before this notice of delegation is superseded by
another notice of delegation under 40 CFR 62.15951(b)(5)(iv) shall be
deemed to be an electronic submission by me.''; and
(E) The following certification statement by such Hg authorized
account representative or alternate Hg authorized account
representative: ``Until this notice of delegation is superseded by
another notice of delegation under 40 CFR 62.15951 (b)(5)(iv), I agree
to maintain an e-mail account and to notify the Administrator
immediately of any change in my e-mail address unless all delegation of
authority under 40 CFR 62.15951(b)(5) is terminated.''
(iv) A notice of delegation submitted under paragraph (b)(5)(iii)
of this section shall be effective, with regard to the Hg authorized
account representative or alternate Hg authorized account
representative identified in such notice, upon receipt of such notice
by the Administrator and until receipt by the Administrator of a
superseding notice of delegation submitted by such Hg authorized
account representative or alternate Hg authorized account
representative, as appropriate. The superseding notice of delegation
may replace any previously identified agent, add a new agent, or
eliminate entirely any delegation of authority.
(v) Any electronic submission covered by the certification in
paragraph (b)(5(iii)(D) of this section and made in accordance with a
notice of delegation effective under paragraph (b)(5)(iv) of this
section shall be deemed to be an electronic submission by the Hg
designated representative or alternate
[[Page 77142]]
Hg designated representative submitting such notice of delegation.
(c) Account identification. The Administrator will assign a unique
identifying number to each account established under paragraph (a) or
(b) of this section.
Sec. 62.15952 Responsibilities of Hg authorized account
representative.
Following the establishment of a Hg Allowance Tracking System
account, all submissions to the Administrator pertaining to the
account, including, but not limited to, submissions concerning the
deduction or transfer of Hg allowances in the account, shall be made
only by the Hg authorized account representative for the account.
Sec. 62.15953 Recordation of Hg allowance allocations.
(a) By December 1, 2007, the Administrator will record in the Hg
Budget source's compliance account the Hg allowances allocated for the
Hg Budget units at the source in accordance with Sec. 62.15942(a) and
(b) for the control period in 2010.
(b) By December 1, 2008, the Administrator will record in the Hg
Budget source's compliance account the Hg allowances allocated for the
Hg Budget units at the source in accordance with Sec. 62.15942(a) and
(b) for the control period in 2011.
(c) By December 1, 2009, the Administrator will record in the Hg
Budget source's compliance account the Hg allowances allocated for the
Hg Budget units at the source in accordance with Sec. 62.15942(a) and
(b) for the control periods in 2012 and 2013.
(d) By December 1, 2010 and December 1 of each year thereafter, the
Administrator will record in the Hg Budget source's compliance account
the Hg allowances allocated for the Hg Budget units at the source in
accordance with Sec. 62.15942(a) and (b) for the control period in the
fourth year after the year of the applicable deadline for recordation
under this paragraph.
(e) By December 1, 2009 and December 1 of each year thereafter, the
Administrator will record in the Hg Budget source's compliance account
the Hg allowances allocated for the Hg Budget units at the source in
accordance with Sec. 62.15942(a) and (c) for the control period in the
year of the applicable deadline for recordation under this paragraph.
(f) Serial numbers for allocated Hg allowances. When recording the
allocation of Hg allowances for a Hg Budget unit in a compliance
account, the Administrator will assign each Hg allowance a unique
identification number that will include digits identifying the year of
the control period for which the Hg allowance is allocated.
Sec. 62.15954 Compliance with Hg Budget emissions limitation.
(a) Allowance transfer deadline. The Hg allowances are available to
be deducted for compliance with a source's Hg Budget emissions
limitation for a control period in a given calendar year only if the Hg
allowances:
(1) Were allocated for the control period in the year or a prior
year; and
(2) Are held in the compliance account as of the allowance transfer
deadline for the control period or are transferred into the compliance
account by a Hg allowance transfer correctly submitted for recordation
under Sec. Sec. 62.15960 and 62.15961 by the allowance transfer
deadline for the control period.
(b) Deductions for compliance. Following the recordation, in
accordance with Sec. 62.15961, of Hg allowance transfers submitted for
recordation in a source's compliance account by the allowance transfer
deadline for a control period, the Administrator will deduct from the
compliance account Hg allowances available under paragraph (a) of this
section in order to determine whether the source meets the Hg Budget
emissions limitation for the control period, as follows:
(1) Until the amount of Hg allowances deducted equals the number of
ounces of total Hg emissions, determined in accordance with Sec. Sec.
62.15970 through 62.15975, from all Hg Budget units at the source for
the control period; or
(2) If there are insufficient Hg allowances to complete the
deductions in paragraph (b)(1) of this section, until no more Hg
allowances available under paragraph (a) of this section remain in the
compliance account.
(c)(1) Identification of Hg allowances by serial number. The Hg
authorized account representative for a source's compliance account may
request that specific Hg allowances, identified by serial number, in
the compliance account be deducted for emissions or excess emissions
for a control period in accordance with paragraph (b) or (d) of this
section. Such request shall be submitted to the Administrator by the
allowance transfer deadline for the control period and include, in a
format prescribed by the Administrator, the identification of the Hg
Budget source and the appropriate serial numbers.
(2) First-in, first-out. The Administrator will deduct Hg
allowances under paragraph (b) or (d) of this section from the source's
compliance account, in the absence of an identification or in the case
of a partial identification of Hg allowances by serial number under
paragraph (c)(1) of this section, on a first-in, first-out (FIFO)
accounting basis in the following order:
(i) Any Hg allowances that were allocated to the units at the
source, in the order of recordation; and then
(ii) Any Hg allowances that were allocated to any entity and
transferred and recorded in the compliance account pursuant to
Sec. Sec. 62.15960 through 62.15962, in the order of recordation.
(d) Deductions for excess emissions.
(1) After making the deductions for compliance under paragraph (b)
of this section for a control period in a calendar year in which the Hg
Budget source has excess emissions, the Administrator will deduct from
the source's compliance account an amount of Hg allowances, allocated
for the control period in the immediately following calendar year,
equal to 3 times the number of ounces of the source's excess emissions.
(2) Any allowance deduction required under paragraph (d)(1) of this
section shall not affect the liability of the owners and operators of
the Hg Budget source or the Hg Budget units at the source for any fine,
penalty, or assessment, or their obligation to comply with any other
remedy, for the same violations, as ordered under the Clean Air Act or
applicable State law.
(e) Recordation of deductions. The Administrator will record in the
appropriate compliance account all deductions from such an account
under paragraph (b) and (d) of this section.
(f) Administrator's action on submissions.
(1) The Administrator may review and conduct independent audits
concerning any submission under the Hg Budget Trading Program and make
appropriate adjustments of the information in the submissions.
(2) The Administrator may deduct Hg allowances from or transfer Hg
allowances to a source's compliance account based on the information in
the submissions, as adjusted under paragraph (f)(1) of this section,
and record such deductions and transfers.
Sec. 62.15955 Banking.
(a) Hg allowances may be banked for future use or transfer in a
compliance account or a general account in accordance with paragraph
(b) of this section.
(b) Any Hg allowance that is held in a compliance account or a
general account will remain in such account unless and until the Hg
allowance is
[[Page 77143]]
deducted or transferred under Sec. 62.15942, Sec. 62.15954, Sec.
62.15956, or Sec. Sec. 62.15960 through 62.15962.
Sec. 62.15956 Account error.
The Administrator may, at his or her sole discretion and on his or
her own motion, correct any error in any Hg Allowance Tracking System
account. Within 10 business days of making such correction, the
Administrator will notify the Hg authorized account representative for
the account.
Sec. 62.15957 Closing of general accounts.
(a) The Hg authorized account representative of a general account
may submit to the Administrator a request to close the account, which
shall include a correctly submitted allowance transfer under Sec. Sec.
62.15960 and 62.15961 for any Hg allowances in the account to one or
more other Hg Allowance Tracking System accounts.
(b) If a general account has no allowance transfers in or out of
the account for a 12-month period or longer and does not contain any Hg
allowances, the Administrator may notify the Hg authorized account
representative for the account that the account will be closed
following 20 business days after the notice is sent. The account will
be closed after the 20-day period unless, before the end of the 20-day
period, the Administrator receives a correctly submitted transfer of Hg
allowances into the account under Sec. Sec. 62.15960 and 62.15961 or a
statement submitted by the Hg authorized account representative
demonstrating to the satisfaction of the Administrator good cause as to
why the account should not be closed.
Hg Allowance Transfers
Sec. 62.15960 Submission of Hg allowance transfers.
An Hg authorized account representative seeking recordation of a Hg
allowance transfer shall submit the transfer to the Administrator. To
be considered correctly submitted, the Hg allowance transfer shall
include the following elements, in a format specified by the
Administrator:
(a) The account numbers for both the transferor and transferee
accounts;
(b) The serial number of each Hg allowance that is in the
transferor account and is to be transferred; and
(c) The name and signature of the Hg authorized account
representative of the transferor account and the date signed.
Sec. 62.15961 EPA recordation.
(a) Within 5 business days (except as provided in paragraph (b) of
this section) of receiving a Hg allowance transfer, the Administrator
will record a Hg allowance transfer by moving each Hg allowance from
the transferor account to the transferee account as specified by the
request, provided that:
(1) The transfer is correctly submitted under Sec. 62.15960; and
(2) The transferor account includes each Hg allowance identified by
serial number in the transfer.
(b) A Hg allowance transfer that is submitted for recordation after
the allowance transfer deadline for a control period and that includes
any Hg allowances allocated for any control period before such
allowance transfer deadline will not be recorded until after the
Administrator completes the deductions under Sec. 62.15954 for the
control period immediately before such allowance transfer deadline.
(c) Where a Hg allowance transfer submitted for recordation fails
to meet the requirements of paragraph (a) of this section, the
Administrator will not record such transfer.
Sec. 62.15962 Notification.
(a) Notification of recordation. Within 5 business days of
recordation of a Hg allowance transfer under Sec. 62.15961, the
Administrator will notify the Hg authorized account representatives of
both the transferor and transferee accounts.
(b) Notification of non-recordation. Within 10 business days of
receipt of a Hg allowance transfer that fails to meet the requirements
of Sec. 62.15961(a), the Administrator will notify the Hg authorized
account representatives of both accounts subject to the transfer of:
(1) A decision not to record the transfer, and
(2) The reasons for such non-recordation.
(c) Nothing in this section shall preclude the submission of a Hg
allowance transfer for recordation following notification of non-
recordation.
Monitoring and Reporting
Sec. 62.15970 General requirements.
The owners and operators, and to the extent applicable, the Hg
designated representative, of a Hg Budget unit, shall comply with the
monitoring, recordkeeping, and reporting requirements as provided in
this section, Sec. Sec. 62.15971 through 62.15975, and subpart I of
part 75 of this chapter. For purposes of complying with such
requirements, the definitions in Sec. 62.15902 and in Sec. 72.2 of
this chapter shall apply, and the terms ``affected unit,'' ``designated
representative,'' and ``continuous emission monitoring system'' (or
``CEMS'') in part 75 of this chapter shall be deemed to refer to the
terms ``Hg Budget unit,'' ``Hg designated representative,'' and
``continuous emission monitoring system'' (or ``CEMS'') respectively,
as defined in Sec. 62.15902. The owner or operator of a unit that is
not a Hg Budget unit but that is monitored under Sec. 75.82(b)(2)(i)
of this chapter shall comply with the same monitoring, recordkeeping,
and reporting requirements as a Hg Budget unit.
(a) Requirements for installation, certification, and data
accounting. The owner or operator of each Hg Budget unit shall:
(1) Install all monitoring systems required under this section and
Sec. Sec. 62.15971 through 62.15975 for monitoring Hg mass emissions
and individual unit heat input (including all systems required to
monitor Hg concentration, stack gas moisture content, stack gas flow
rate, and CO2 or O2 concentration, as applicable,
in accordance with Sec. Sec. 75.81 and 75.82 of this chapter);
(2) Successfully complete all certification tests required under
Sec. 62.15971 and meet all other requirements of this section,
Sec. Sec. 62.15971 through 62.15975, and subpart I of part 75 of this
chapter applicable to the monitoring systems under paragraph (a)(1) of
this section; and
(3) Record, report, and quality-assure the data from the monitoring
systems under paragraph (a)(1) of this section.
(b) Compliance deadlines. Except as provided in paragraph (e) of
this section, the owner or operator shall meet the monitoring system
certification and other requirements of paragraphs (a)(1) and (2) of
this section on or before the following dates. The owner or operator
shall record, report, and quality-assure the data from the monitoring
systems under paragraph (a)(1) of this section on and after the
following dates.
(1) For the owner or operator of a Hg Budget unit that commences
commercial operation before July 1, 2008, by January 1, 2009.
(2) For the owner or operator of a Hg Budget unit that commences
commercial operation on or after July 1, 2008, by the later of the
following dates:
(i) January 1, 2009; or
(ii) 90 unit operating days or 180 calendar days, whichever occurs
first, after the date on which the unit commences commercial operation.
(3) For the owner or operator of a Hg Budget unit for which
construction of a new stack or flue or installation of add-on Hg
emission controls, a flue gas desulfurization system, a selective
[[Page 77144]]
catalytic reduction system, or a compact hybrid particulate collector
system is completed after the applicable deadline under paragraph
(b)(1) or (2) of this section, by 90 unit operating days or 180
calendar days, whichever occurs first, after the date on which
emissions first exit to the atmosphere through the new stack or flue,
add-on Hg emissions controls, flue gas desulfurization system,
selective catalytic reduction system, or compact hybrid particulate
collector system.
(c) Reporting data. The owner or operator of a Hg Budget unit that
does not meet the applicable compliance date set forth in paragraph (b)
of this section for any monitoring system under paragraph (a)(1) of
this section shall, for each such monitoring system, determine, record,
and report maximum potential (or, as appropriate, minimum potential)
values for Hg concentration, stack gas flow rate, stack gas moisture
content, and any other parameters required to determine Hg mass
emissions and heat input in accordance with Sec. 75.80(g) of this
chapter.
(d) Prohibitions.
(1) No owner or operator of a Hg Budget unit shall use any
alternative monitoring system, alternative reference method, or any
other alternative to any requirement of this section and Sec. Sec.
62.15971 through 62.15974 without having obtained prior written
approval in accordance with Sec. 62.15975.
(2) No owner or operator of a Hg Budget unit shall operate the unit
so as to discharge, or allow to be discharged, Hg emissions to the
atmosphere without accounting for all such emissions in accordance with
the applicable provisions of this section, Sec. Sec. 62.15971 through
62.15975, and subpart I of part 75 of this chapter.
(3) No owner or operator of a Hg Budget unit shall disrupt the
continuous emission monitoring system, any portion thereof, or any
other approved emission monitoring method, and thereby avoid monitoring
and recording Hg mass emissions discharged into the atmosphere or heat
input, except for periods of recertification or periods when
calibration, quality assurance testing, or maintenance is performed in
accordance with the applicable provisions of this section, Sec. Sec.
62.15971 through 62.15975, and subpart I of part 75 of this chapter.
(4) No owner or operator of a Hg Budget unit shall retire or
permanently discontinue use of the continuous emission monitoring
system, any component thereof, or any other approved monitoring system
under this section and Sec. Sec. 62.15971 through 62.15975, except
under any one of the following circumstances:
(i) During the period that the unit is covered by an exemption
under Sec. 62.15905 that is in effect;
(ii) The owner or operator is monitoring emissions from the unit
with another certified monitoring system approved, in accordance with
the applicable provisions of this section, Sec. Sec. 62.15971 through
62.15975, and subpart I of part 75 of this chapter, by the
Administrator for use at that unit that provides emission data for the
same pollutant or parameter as the retired or discontinued monitoring
system; or
(iii) The Hg designated representative submits notification of the
date of certification testing of a replacement monitoring system for
the retired or discontinued monitoring system in accordance with Sec.
62.15971(c)(3)(i).
(e) Long-term cold storage. The owner or operator of a Hg Budget
unit is subject to the applicable provisions of part 75 of this chapter
concerning units in long-term cold storage.
Sec. 62.15971 Initial certification and recertification procedures.
(a) The owner or operator of a Hg Budget unit shall be exempt from
the initial certification requirements of this section for a monitoring
system under Sec. 62.15970(a)(1) if the following conditions are met:
(1) The monitoring system has been previously certified in
accordance with part 75 of this chapter; and
(2) The applicable quality-assurance and quality-control
requirements of Sec. 75.21 of this chapter and appendix B to part 75
of this chapter are fully met for the certified monitoring system
described in paragraph (a)(1) of this section.
(b) The recertification provisions of this section shall apply to a
monitoring system under Sec. 62.15970(a)(1) exempt from initial
certification requirements under paragraph (a) of this section.
(c) Except as provided in paragraph (a) of this section, the owner
or operator of a Hg Budget unit shall comply with the following initial
certification and recertification procedures for a continuous
monitoring system (i.e., a continuous emission monitoring system and an
excepted monitoring system (sorbent trap monitoring system) under Sec.
75.15) under Sec. 62.15970(a)(1). The owner or operator of a unit that
qualifies to use the Hg low mass emissions excepted monitoring
methodology under Sec. 75.81(b) of this chapter or that qualifies to
use an alternative monitoring system under subpart E of part 75 of this
chapter shall comply with the procedures in paragraph (d) or (e) of
this section respectively.
(1) Requirements for initial certification. The owner or operator
shall ensure that each continuous monitoring system under Sec.
62.15970(a)(1) (including the automated data acquisition and handling
system) successfully completes all of the initial certification testing
required under Sec. 75.20 of this chapter by the applicable deadline
in Sec. 62.15970(b). In addition, whenever the owner or operator
installs a monitoring system to meet the requirements of this subpart
in a location where no such monitoring system was previously installed,
initial certification in accordance with Sec. 75.20 of this chapter is
required.
(2) Requirements for recertification. Whenever the owner or
operator makes a replacement, modification, or change in any certified
continuous emission monitoring system, or an excepted monitoring system
(sorbent trap monitoring system) under Sec. 75.15, under Sec.
62.15970(a)(1) that may significantly affect the ability of the system
to accurately measure or record Hg mass emissions or heat input rate or
to meet the quality-assurance and quality-control requirements of Sec.
75.21 of this chapter or appendix B to part 75 of this chapter, the
owner or operator shall recertify the monitoring system in accordance
with Sec. 75.20(b) of this chapter. Furthermore, whenever the owner or
operator makes a replacement, modification, or change to the flue gas
handling system or the unit's operation that may significantly change
the stack flow or concentration profile, the owner or operator shall
recertify each continuous emission monitoring system, and each excepted
monitoring system (sorbent trap monitoring system) under Sec. 75.15,
whose accuracy is potentially affected by the change, in accordance
with Sec. 75.20(b) of this chapter. Examples of changes to a
continuous emission monitoring system that require recertification
include replacement of the analyzer, complete replacement of an
existing continuous emission monitoring system, or change in location
or orientation of the sampling probe or site.
(3) Approval process for initial certification and recertification.
Paragraphs (c)(3)(i) through (iv) of this section apply to both initial
certification and recertification of a continuous monitoring system
under Sec. 62.15970(a)(1). For recertifications, replace the words
``certification'' and ``initial certification'' with the word
``recertification'', replace the word ``certified'' with the word
``recertified'',
[[Page 77145]]
and follow the procedures in Sec. 75.20(b)(5) of this chapter in lieu
of the procedures in paragraph (c)(3)(v) of this section.
(i) Notification of certification. The Hg designated representative
shall submit to the Administrator and the appropriate EPA Regional
Office written notice of the dates of certification testing, in
accordance with Sec. 62.15973.
(ii) Certification application. The Hg designated representative
shall submit to the Administrator a certification application for each
monitoring system. A complete certification application shall include
the information specified in Sec. 75.63 of this chapter.
(iii) Provisional certification date. The provisional certification
date for a monitoring system shall be determined in accordance with
Sec. 75.20(a)(3) of this chapter. A provisionally certified monitoring
system may be used under the Hg Budget Trading Program for a period not
to exceed 120 days after receipt by the Administrator of the complete
certification application for the monitoring system under paragraph
(c)(3)(ii) of this section. Data measured and recorded by the
provisionally certified monitoring system, in accordance with the
requirements of part 75 of this chapter, will be considered valid
quality-assured data (retroactive to the date and time of provisional
certification), provided that the Administrator does not invalidate the
provisional certification by issuing a notice of disapproval within 120
days of the date of receipt of the complete certification application
by the Administrator.
(iv) Certification application approval process. The Administrator
will issue a written notice of approval or disapproval of the
certification application to the owner or operator within 120 days of
receipt of the complete certification application under paragraph
(c)(3)(ii) of this section. In the event the Administrator does not
issue such a notice within such 120-day period, each monitoring system
that meets the applicable performance requirements of part 75 of this
chapter and is included in the certification application will be deemed
certified for use under the Hg Budget Trading Program.
(A) Approval notice. If the certification application is complete
and shows that each monitoring system meets the applicable performance
requirements of part 75 of this chapter, then the Administrator will
issue a written notice of approval of the certification application
within 120 days of receipt.
(B) Incomplete application notice. If the certification application
is not complete, then the Administrator will issue a written notice of
incompleteness that sets a reasonable date by which the Hg designated
representative must submit the additional information required to
complete the certification application. If the Hg designated
representative does not comply with the notice of incompleteness by the
specified date, then the Administrator may issue a notice of
disapproval under paragraph (c)(3)(iv)(C) of this section. The 120-day
review period shall not begin before receipt of a complete
certification application.
(C) Disapproval notice. If the certification application shows that
any monitoring system does not meet the performance requirements of
part 75 of this chapter or if the certification application is
incomplete and the requirement for disapproval under paragraph
(c)(3)(iv)(B) of this section is met, then the Administrator will issue
a written notice of disapproval of the certification application. Upon
issuance of such notice of disapproval, the provisional certification
is invalidated by the Administrator and the data measured and recorded
by each uncertified monitoring system shall not be considered valid
quality-assured data beginning with the date and hour of provisional
certification (as defined under Sec. 75.20(a)(3) of this chapter). The
owner or operator shall follow the procedures for loss of certification
in paragraph (c)(3)(v) of this section for each monitoring system that
is disapproved for initial certification.
(D) Audit decertification. The Administrator may issue a notice of
disapproval of the certification status of a monitor in accordance with
Sec. 62.15972(b).
(v) Procedures for loss of certification. If the Administrator
issues a notice of disapproval of a certification application under
paragraph (c)(3)(iv)(C) of this section or a notice of disapproval of
certification status under paragraph (c)(3)(iv)(D) of this section,
then:
(A) The owner or operator shall substitute the following values,
for each disapproved monitoring system, for each hour of unit operation
during the period of invalid data specified under Sec.
75.20(a)(4)(iii) or Sec. 75.21(e) of this chapter and continuing until
the applicable date and hour specified under Sec. 75.20(a)(5)(i) of
this chapter:
(1) For a disapproved Hg pollutant concentration monitors and
disapproved flow monitor, respectively, the maximum potential
concentration of Hg and the maximum potential flow rate, as defined in
sections 2.1.7.1 and 2.1.4.1 of appendix A to part 75 of this chapter.
(2) For a disapproved moisture monitoring system and disapproved
diluent gas monitoring system, respectively, the minimum potential
moisture percentage and either the maximum potential CO2
concentration or the minimum potential O2 concentration (as
applicable), as defined in sections 2.1.5, 2.1.3.1, and 2.1.3.2 of
appendix A to part 75 of this chapter.
(3) For a disapproved excepted monitoring system (sorbent trap
monitoring system) under Sec. 75.15 and disapproved flow monitor,
respectively, the maximum potential concentration of Hg and maximum
potential flow rate, as defined in sections 2.1.7.1 and 2.1.4.1 of
appendix A to part 75 of this chapter.
(B) The Hg designated representative shall submit a notification of
certification retest dates and a new certification application in
accordance with paragraphs (c)(3)(i) and (ii) of this section.
(C) The owner or operator shall repeat all certification tests or
other requirements that were failed by the monitoring system, as
indicated in the Administrator's notice of disapproval, no later than
30 unit operating days after the date of issuance of the notice of
disapproval.
(d) Initial certification and recertification procedures for units
using the Hg low mass emission excepted methodology under Sec.
75.81(b) of this chapter. The owner or operator of a unit qualified to
use the Hg low mass emissions (HgLME) excepted methodology under Sec.
75.81(b) of this chapter shall meet the applicable certification and
recertification requirements in Sec. 75.81(c) through (f) of this
chapter.
(e) Certification/recertification procedures for alternative
monitoring systems. The Hg designated representative of each unit for
which the owner or operator intends to use an alternative monitoring
system approved by the Administrator under subpart E of part 75 of this
chapter shall comply with the applicable notification and application
procedures of Sec. 75.20(f) of this chapter.
Sec. 62.15972 Out of control periods.
(a) Whenever any monitoring system fails to meet the quality-
assurance and quality-control requirements or data validation
requirements of part 75 of this chapter, data shall be substituted
using the applicable missing data procedures in subpart D of part 75 of
this chapter.
(b) Audit decertification. Whenever both an audit of a monitoring
system
[[Page 77146]]
and a review of the initial certification or recertification
application reveal that any monitoring system should not have been
certified or recertified because it did not meet a particular
performance specification or other requirement under Sec. 62.15971 or
the applicable provisions of part 75 of this chapter, both at the time
of the initial certification or recertification application submission
and at the time of the audit, the Administrator will issue a notice of
disapproval of the certification status of such monitoring system. For
the purposes of this paragraph, an audit shall be either a field audit
or an audit of any information submitted to the permitting authority or
the Administrator. By issuing the notice of disapproval, the
Administrator revokes prospectively the certification status of the
monitoring system. The data measured and recorded by the monitoring
system shall not be considered valid quality-assured data from the date
of issuance of the notification of the revoked certification status
until the date and time that the owner or operator completes
subsequently approved initial certification or recertification tests
for the monitoring system. The owner or operator shall follow the
applicable initial certification or recertification procedures in Sec.
62.15971 for each disapproved monitoring system.
Sec. 62.15973 Notifications.
The Hg designated representative for a Hg Budget unit shall submit
written notice to the Administrator in accordance with Sec. 75.61 of
this chapter.
Sec. 62.15974 Recordkeeping and reporting.
(a) General provisions. The Hg designated representative shall
comply with all recordkeeping and reporting requirements in this
section, the applicable recordkeeping and reporting requirements of
Sec. 75.84 of this chapter, and the requirements of Sec.
62.15910(e)(1).
(b) Monitoring plans. The owner or operator of a Hg Budget unit
shall comply with requirements of Sec. 75.84(e) of this chapter.
(c) Certification applications. The Hg designated representative
shall submit an application to the Administrator within 45 days after
completing all initial certification or recertification tests required
under Sec. 62.15971, including the information required under Sec.
75.63 of this chapter.
(d) Quarterly reports. The Hg designated representative shall
submit quarterly reports, as follows:
(1) The Hg designated representative shall report the Hg mass
emissions data and heat input data for the Hg Budget unit, in an
electronic quarterly report in a format prescribed by the
Administrator, for each calendar quarter beginning with:
(i) For a unit that commences commercial operation before July 1,
2008, the calendar quarter covering January 1, 2009 through March 31,
2009; or
(ii) For a unit that commences commercial operation on or after
July 1, 2008, the calendar quarter corresponding to the earlier of the
date of provisional certification or the applicable deadline for
initial certification under Sec. 62.15970(b), unless that quarter is
the third or fourth quarter of 2008, in which case reporting shall
commence in the quarter covering January 1, 2009 through March 31,
2009.
(2) The Hg designated representative shall submit each quarterly
report to the Administrator within 30 days following the end of the
calendar quarter covered by the report. Quarterly reports shall be
submitted in the manner specified in Sec. 75.84(f) of this chapter.
(3) For Hg Budget units that are also subject to an Acid Rain
emissions limitation or the CAIR NOX Annual Trading Program,
CAIR SO2 Trading Program, or CAIR NOX Ozone
Season Trading Program, quarterly reports shall include the applicable
data and information required by subparts F through H of part 75 of
this chapter as applicable, in addition to the Hg mass emission data,
heat input data, and other information required by this section,
Sec. Sec. 62.15970 through 62.15973, and Sec. 62.15975.
(e) Compliance certification. The Hg designated representative
shall submit to the Administrator a compliance certification (in a
format prescribed by the Administrator) in support of each quarterly
report based on reasonable inquiry of those persons with primary
responsibility for ensuring that all of the unit's emissions are
correctly and fully monitored. The certification shall state that:
(1) The monitoring data submitted were recorded in accordance with
the applicable requirements by this section, Sec. Sec. 62.15970
through 62.15973, Sec. 62.15975, and part 75 of this chapter,
including the quality assurance procedures and specifications; and
(2) For a unit with add-on Hg emission controls, a flue gas
desulfurization system, a selective catalytic reduction system, or a
compact hybrid particulate collector system and for all hours where Hg
data are substituted in accordance with Sec. 75.34(a)(1) of this
chapter,
(i)(A) The Hg add-on emission controls, flue gas desulfurization
system, selective catalytic reduction system, or compact hybrid
particulate collector system were operating within the range of
parameters listed in the quality assurance/quality control program
under appendix B to part 75 of this chapter, or
(B) With regard to a flue gas desulfurization system or a selective
catalytic reduction system, quality-assured SO2 emission
data recorded in accordance with part 75 of this chapter document that
the flue gas desulfurization system was operating properly or quality-
assured NOX emission data recorded in accordance with part
75 of this chapter document that the selective catalytic reduction
system was operating properly, as applicable, and
(ii) The substitute data values do not systematically underestimate
Hg emissions.
Sec. 62.15975 Petitions.
The Hg designated representative of a Hg Budget unit may submit a
petition under Sec. 75.66 of this chapter to the Administrator
requesting approval to apply an alternative to any requirement of
Sec. Sec. 62.15970 through 62.15974. Application of an alternative to
any requirement of Sec. Sec. 62.15970 through 62.15974 is in
accordance with this section and Sec. Sec. 62.15970 through 62.15974
only to the extent that the petition is approved in writing by the
Administrator, in consultation with the permitting authority.
Appendix A to Subpart LLL of Part 62--States With Approved State
Allocation Methodology
The following States have a State allocation methodology under
Sec. 52.24(h)(9) of this chapter approved by the Administrator and
providing for allocation of Hg allowances by the permitting authority
under Sec. 62.15943(a):
[Reserved]
PART 72--PERMITS REGULATION
33. The authority citation for part 72 continues to read as
follows:
Authority: 42 U.S.C. 7601 and 7651, et seq.
Sec. 72.22 [Amended]
34. Section 72.22 is amended as follows:
a. In paragraph (b), by revising the words ``an action,
representation, or failure to act'' to read ``a representation, action,
inaction, or submission''; and
b. Removing paragraph (e).
[[Page 77147]]
PART 78--APPEAL PROCEDURES
35. The authority citation for part 78 is revised to read as
follows:
Authority: 42 U.S.C. 7401, 7403, 7410, 7411, 7426, 7601, and
7651, et seq.
36. Section 78.1 is amended as follows:
a. In paragraph (a)(1), revising the words ``under part 72'' to
read ``under subpart HHHH of part 60 of this chapter or State
regulations approved under Sec. 60.24(h)(6) of this chapter, subpart
LLL of part 62 of this chapter, parts 72''; and
b. Adding new paragraphs (b)(13) and (b)(14) to read as follows:
Sec. 78.1 Purpose and scope.
* * * * *
(b) * * *
(13) Under subpart HHHH of part 60 of this chapter,
(i) The decision on the allocation of Hg allowances under
Sec. Sec. 60.4140 through 60.4142 of this chapter.
(ii) The decision on the deduction of Hg allowances, and the
adjustment of the information in a submission and the decision on the
deduction or transfer of Hg allowances based on the information as
adjusted, under Sec. 60.4154 of this chapter;
(iii) The correction of an error in a Hg Allowance Tracking System
account under Sec. 60.4156 of this chapter;
(iv) The decision on the transfer of Hg allowances under Sec.
60.4161 of this chapter;
(v) The finalization of control period emissions data, including
retroactive adjustment based on audit;
(vi) The approval or disapproval of a petition under Sec. 60.4175
of this chapter.
(14) Under subpart LLL of part 62 of this chapter,
(i) The decision on the allocation of Hg allowances under
Sec. Sec. 62.15940 through 62.15942 of part 62 of this chapter.
(ii) The decision on the deduction of Hg allowances, and the
adjustment of the information in a submission and the decision on the
deduction or transfer of Hg allowances based on the information as
adjusted, under Sec. 62.15954 of this chapter;
(iii) The correction of an error in a Hg Allowance Tracking System
account under Sec. 62.15956 of this chapter;
(iv) The decision on the transfer of Hg allowances under Sec.
62.15961;
(v) The finalization of control period emissions data, including
retroactive adjustment based on audit;
(vi) The approval or disapproval of a petition under Sec. 62.15975
of this chapter.
* * * * *
37. Section 78.3 is amended as follows:
a. By adding new paragraphs (a)(10), (a)(11), (d)(11), and (d)(12);
b. In paragraph (b)(3)(i), by adding the words ``or the Hg
designated representative or Hg authorized account representative under
paragraph (a)(10) or (11) of this section (unless the Hg designated
representative or Hg authorized account representative is the
petitioner) after the words ``(unless the CAIR designated
representative or CAIR authorized account representative is the
petitioner)'';
c. In paragraph (d)(3), by adding the words ``or a certificate of
representation submitted by a Hg designated representative or an
application of a general account submitted by a Hg authorized account
representative under subpart HHHH of part 60 of this chapter or subpart
LLL of part 62 of this chapter'' after the words ``subparts AAAA
through IIII of part 96 of this chapter, or under part 97 of this
chapter'':
Sec. 78.3 Petition for administrative review and request for
evidentiary hearing.
(a) * * *
(10) The following persons may petition for administrative review
of a decision of the Administrator that is made under subpart HHHH of
part 60 of this chapter and that is appealable under Sec. 78.1(a):
(i) The Hg designated representative for a unit or source, or the
Hg authorized account representative for any Hg Allowance Tracking
System account, covered by the decision; or
(ii) Any interested person.
(11) The following persons may petition for administrative review
of a decision of the Administrator that is made under subpart LLL of
part 62 and that is appealable under Sec. 78.1(a):
(i) The Hg designated representative for a unit or source, or the
Hg authorized account representative for any Hg Allowance Tracking
System account, covered by the decision; or
(ii) Any interested person.
* * * * *
(d) * * *
(11) Any provision or requirement of subpart HHHH of part 60 of
this chapter, including the standard requirements under Sec. 60.4106
of this chapter and any emission monitoring or reporting requirements.
(12) Any provision or requirement of subpart LLL of part 62 of this
chapter, including the standard requirements under Sec. 97.206 of this
chapter and any emission monitoring or reporting requirements.
[FR Doc. E6-21573 Filed 12-21-06; 8:45 am]
BILLING CODE 6560-50-P