[Federal Register Volume 72, Number 88 (Tuesday, May 8, 2007)]
[Proposed Rules]
[Pages 26040-26045]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-8665]
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ENVIRONMENTAL PROTECTION AGENCY
40 CFR Part 52
[EPA-R07-OAR-2007-0347; FRL-8309-6]
Approval And Promulgation of Implementation Plans; Iowa; Clean
Air Interstate Rule
AGENCY: Environmental Protection Agency (EPA).
ACTION: Proposed rule.
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SUMMARY: EPA is proposing to approve a revision to the Iowa State
Implementation Plan (SIP) submitted on August 15, 2006. This revision
addresses the requirements of EPA's Clean Air Interstate Rule (CAIR)
promulgated on May 12, 2005, and subsequently revised on April 28,
2006, and December 13, 2006. EPA is proposing to determine that the SIP
revision fully implements the CAIR requirements for Iowa. Therefore, as
a consequence of the SIP approval, EPA will also withdraw the CAIR
Federal Implementation Plans (FIPs) concerning SO2,
NOX annual, NOX ozone season emissions for Iowa.
The CAIR FIPs for all States in the CAIR region were promulgated on
April 28, 2006, and subsequently revised on December 13, 2006.
CAIR requires States to reduce emissions of sulfur dioxide
(SO2) and nitrogen oxides (NOX) that
significantly contribute to, and interfere with maintenance of, the
national ambient air quality standards for fine particulates and/or
ozone in any downwind state. CAIR establishes State budgets for
SO2 and NOX and requires States to submit SIP
revisions that implement these budgets in States that EPA concluded did
contribute to nonattainment in downwind states. States have the
flexibility to choose which control measures to adopt to achieve the
budgets, including participating in the EPA-administered cap-and-trade
programs. In the SIP revision that EPA is proposing to approve, Iowa
would meet CAIR requirements by participating in the EPA-administered
cap-and-trade programs addressing SO2, NOX
annual, and NOX ozone season emissions.
DATES: Comments must be received on or before June 7, 2007.
ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R07-
OAR-2007-0347, by one of the following methods:
1. http://www.regulations.gov: Follow the on-line instructions for
submitting comments.
2. E-mail: [email protected].
3. Mail: Michael Jay, Environmental Protection Agency, Air Planning
and Development Branch, 901 North 5th Street, Kansas City, Kansas
66101.
4. Hand Delivery or Courier: Deliver your comments to: Michael Jay,
Environmental Protection Agency, Air Planning and Development Branch,
901 North 5th Street, Kansas City, Kansas 66101. Such deliveries are
only accepted during the Regional Office's normal hours of operation.
The Regional Office's official hours of business are Monday through
Friday, 8 a.m. to 4:30 p.m., excluding Federal holidays.
Instructions: Direct your comments to Docket ID No. EPA-R07-OAR-
2007-0347. 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 through http://www.regulations.gov or e-mail,
[[Page 26041]]
information that you consider to be CBI or otherwise protected. The
http://www.regulations.gov Web site is an ``anonymous access'' system,
which means EPA will not know your identity or contact information
unless you provide it in the body of your comment. If you send an e-
mail comment directly to EPA without going through http://www.regulations.gov, your e-mail address will be automatically captured
and included as part of the comment that is placed in the public docket
and made available on the Internet. If you submit an electronic
comment, EPA recommends that you include your name and other contact
information in the body of your comment and with any disk or CD-ROM you
submit. If EPA cannot read your comment due to technical difficulties
and cannot contact you for clarification, EPA may not be able to
consider your comment. Electronic files should avoid the use of special
characters and any form of encryption and should be free of any defects
or viruses.
Docket: All documents in the electronic docket are listed in the
http://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 http://www.regulations.gov or in hard copy at the Environmental Protection
Agency, Air Planning and Development Branch, 901 North 5th Street,
Kansas City, Kansas 66101. EPA requests that you contact the person
listed in the FOR FURTHER INFORMATION CONTACT section to schedule your
inspection. The interested persons wanting to examine these documents
should make an appointment with the office at least 24 hours in
advance.
FOR FURTHER INFORMATION CONTACT: If you have questions concerning this
proposal, please contact Michael Jay at (913) 551-7460 or by e-mail at
[email protected].
SUPPLEMENTARY INFORMATION: Throughout this document whenever ``we,''
``us,'' or ``our'' is used, we mean EPA.
Table of Contents
I. What Action Is EPA Proposing to Take?
II. What Is the Regulatory History of CAIR and the CAIR FIPs?
III. What Are the General Requirements of CAIR and the CAIR FIPs?
IV. What Are the Types of CAIR SIP Submittals?
V. Analysis of Iowa's CAIR SIP Submittal
A. State Budgets for Allowance Allocations
B. CAIR Cap-and-Trade Programs
C. NOX Allowance Allocations
D. Allocation of NOX Allowances from Compliance
Supplement Pool
E. Individual Opt-in Units
VI. Proposed Actions
VII. Statutory and Executive Order Reviews
I. What Action Is EPA Proposing to Take?
EPA is proposing to approve a revision to Iowa's SIP submitted on
August 15, 2006. In its SIP revision, Iowa would meet CAIR requirements
by requiring certain electric generating units (EGUs) to participate in
the EPA-administered State CAIR cap-and-trade programs addressing
SO2, NOX annual, and NOX ozone season
emissions, as finalized in the Iowa Administrative Bulletin on June 7,
2006 (567-20.1(455B,17A), 21.1(4), and Chapter 34). Iowa's regulations
adopt by reference most of the provisions of EPA's SO2,
NOX annual, and NOX ozone season model trading
rules, with certain changes discussed below. EPA is proposing to
determine that the SIP as revised will meet the applicable requirements
of CAIR. Any final action approving the SIP will be taken by the
Regional Administrator for Region 7. If EPA approves this revision, the
Administrator of EPA will also issue a final rule to withdraw the FIPs
concerning SO2, NOX annual, and NOX
ozone season emissions for Iowa. This action would delete and reserve
40 CFR 52.840 and 40 CFR 52.841, relating to the CAIR FIP obligations
for Iowa. The withdrawal of the CAIR FIPs for Iowa is a conforming
amendment that must be made once the SIP is approved because EPA's
authority to issue the FIPs was premised on a deficiency in the SIP for
Iowa. Once a SIP is fully approved, EPA no longer has authority for the
FIPs. Thus, EPA will not have the option of maintaining the FIPs
following full SIP approval. Accordingly, EPA does not intend to offer
an opportunity for a public hearing or an additional opportunity for
written public comment on the withdrawal of the FIPs.
II. What Is the Regulatory History of CAIR and the CAIR FIPs?
The Clean Air Interstate Rule (CAIR) was published by EPA on May
12, 2005 (70 FR 25162). In this rule, EPA determined that 28 States and
the District of Columbia contribute significantly to nonattainment and
interfere with maintenance of the national ambient air quality
standards (NAAQS) for fine particles (PM2.5) and/or 8-hour
ozone in downwind States in the eastern part of the country. As a
result, EPA required those upwind States to revise their SIPs to
include control measures that reduce emissions of SO2, which
is a precursor to PM2.5 formation, and/or NOX,
which is a precursor to both ozone and PM2.5 formation. For
jurisdictions that contribute significantly to downwind
PM2.5 nonattainment, CAIR sets annual State-wide emission
reduction requirements (i.e., budgets) for SO2 and annual
State-wide emission reduction requirements for NOX.
Similarly, for jurisdictions that contribute significantly to 8-hour
ozone nonattainment, CAIR sets State-wide emission reduction
requirements for NOX for the ozone season (May 1 to
September 30). Under CAIR, States may implement these reduction
requirements by participating in the EPA-administered cap-and-trade
programs or by adopting any other control measures.
CAIR explains to subject States what must be included in SIPs to
address the requirements of section 110(a)(2)(D) of the Clean Air Act
(CAA) with regard to interstate transport with respect to the 8-hour
ozone and PM2.5 NAAQS. EPA made national findings, effective
on May 25, 2005, that the States had failed to submit SIPs meeting the
requirements of section 110(a)(2)(D). The SIPs were due in July 2000, 3
years after the promulgation of the 8-hour ozone and PM2.5
NAAQS. These findings started a 2-year clock for EPA to promulgate a
Federal Implementation Plan (FIP) to address the requirements of
section 110(a)(2)(D). Under CAA section 110(c)(1), EPA may issue a FIP
anytime after such findings are made and must do so within two years
unless a SIP revision correcting the deficiency is approved by EPA
before the FIP is promulgated.
Iowa submitted its SIP in response to EPA's section 110(a)(2)(D)
finding, which EPA approved in a rule published March 8, 2007 (72 FR
10380). In that rule, EPA stated that Iowa had met its obligation with
regard to interstate transport by adoption of the CAIR model rule. EPA
also stated that it would review and act on Iowa's CAIR rule in a
separate rulemaking. This document proposes action on Iowa's CAIR rule
as explained below.
On April 28, 2006, EPA promulgated FIPs for all States covered by
CAIR in order to ensure the emissions reductions required by CAIR are
achieved on schedule. Each CAIR State is subject to the FIPs until the
State fully adopts, and EPA approves, a SIP revision meeting the
requirements of CAIR. The CAIR
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FIPs require EGUs to participate in the EPA-administered CAIR
SO2, NOX annual, and NOX ozone season
trading programs, as appropriate. The CAIR FIP SO2,
NOX annual, and NOX ozone season trading programs
impose essentially the same requirements as, and are integrated with,
the respective CAIR SIP trading programs. The integration of the FIP
and SIP trading programs means that these trading programs will work
together to effectively create a single trading program for each
regulated pollutant (SO2, NOX annual, and
NOX ozone season) in all States covered by the CAIR FIP or
SIP trading program for that pollutant. The CAIR FIPs also allow States
to submit abbreviated SIP revisions that, if approved by EPA, will
automatically replace or supplement certain CAIR FIP provisions (e.g.,
the methodology for allocating NOX allowances to sources in
the State), while the CAIR FIP remains in place for all other
provisions.
On April 28, 2006, EPA published two additional CAIR-related final
rules that added the States of Delaware and New Jersey to the list of
States subject to CAIR for PM2.5 and announced EPA's final
decisions on reconsideration of five issues, without making any
substantive changes to the CAIR requirements.
III. What Are the General Requirements of CAIR and the CAIR FIPs?
CAIR establishes State-wide emission budgets for SO2 and
NOX and is to be implemented in two phases. The first phase
of NOX reductions starts in 2009 and continues through 2014,
while the first phase of SO2 reductions starts in 2010 and
continues through 2014. The second phase of reductions for both
NOX and SO2 starts in 2015 and continues
thereafter. CAIR requires States to implement the budgets by either:
(1) Requiring EGUs to participate in the EPA-administered cap-and-trade
programs; or (2) adopting other control measures of the State's
choosing and demonstrating that such control measures will result in
compliance with the applicable State SO2 and NOX
budgets.
The May 12, 2005, and April 28, 2006, CAIR rules provide model
rules that States must adopt (with certain limited changes, if desired)
if they want to participate in the EPA-administered trading programs.
With two exceptions, only States that choose to meet the
requirements of CAIR through methods that exclusively regulate EGUs are
allowed to participate in the EPA-administered trading programs. One
exception is for States that adopt the opt-in provisions of the model
rules to allow non-EGUs individually to opt into the EPA-administered
trading programs. The other exception is for States that include all
non-EGUs from their NOX SIP Call trading programs in their
CAIR NOX ozone season trading programs.
IV. What Are the Types of CAIR SIP Submittals?
States have the flexibility to choose the type of control measures
they will use to meet the requirements of CAIR. EPA anticipates that
most States will choose to meet the CAIR requirements by selecting an
option that requires EGUs to participate in the EPA-administered CAIR
cap-and-trade programs. For such States, EPA has provided two
approaches for submitting and obtaining approval for CAIR SIP
revisions. States may submit full SIP revisions that adopt the model
CAIR cap-and-trade rules. If approved, these SIP revisions will fully
replace the CAIR FIPs. Alternatively, States may submit abbreviated SIP
revisions. These SIP revisions will not replace the CAIR FIPs; however,
the CAIR FIPs provide that, when approved, the provisions in these
abbreviated SIP revisions will be used instead of or in conjunction
with, as appropriate, the corresponding provisions of the CAIR FIPs
(e.g., the NOX allowance allocation methodology).
A State submitting a full SIP revision may either adopt regulations
that are substantively identical to the model rules or incorporate by
reference the model rules. CAIR provides that States may only make
limited changes to the model rules if the States want to participate in
the EPA-administered trading programs. A full SIP revision may change
the model rules only by altering their applicability and allowance
allocation provisions to: (1) Include NOX SIP Call trading
sources that are not EGUs under CAIR in the CAIR NOX ozone
season trading program; (2) provide for State allocation of
NOX annual or ozone season allowances using a methodology
chosen by the State; (3) provide for State allocation of NOX
annual allowances from the compliance supplement pool (CSP) using the
State's choice of allowed, alternative methodologies; or (4) allow
units that are not otherwise CAIR units to opt individually into the
CAIR SO2, NOX annual, or NOX ozone
season trading programs under the opt-in provisions in the model rules.
An approved CAIR full SIP revision addressing EGUs' SO2,
NOX annual, or NOX ozone season emissions will
replace the CAIR FIP for that State for the respective EGU emissions.
V. Analysis of Iowa's CAIR SIP Submittal
A. State Budgets for Allowance Allocations
The CAIR NOX annual and ozone season budgets were
developed from historical heat input data for EGUs. Using these data,
EPA calculated annual and ozone season regional heat input values,
which were multiplied by 0.15 lb/mmBtu, for phase 1, and 0.125 lb/
mmBtu, for phase 2, to obtain regional NOX budgets for 2009-
2014 and for 2015 and thereafter, respectively. EPA derived the State
NOX annual and ozone season budgets from the regional
budgets using State heat input data adjusted by fuel factors.
The CAIR State SO2 budgets were derived by discounting
the tonnage of emissions authorized by annual allowance allocations
under the Acid Rain Program under title IV of the CAA. Under CAIR, each
allowance allocated in the Acid Rain Program for the years in phase 1
of CAIR (2010 through 2014) authorizes 0.5 ton of SO2
emissions in the CAIR trading program, and each Acid Rain Program
allowance allocated for the years in phase 2 of CAIR (2015 and
thereafter) authorizes 0.35 ton of SO2 emissions in the CAIR
trading program.
In this action, EPA is proposing approval of Iowa's SIP revision
that adopts the budgets established for the State in CAIR, i.e., 32,692
(2009-2014) and 27,243 (2015-thereafter) tons for NOX annual
emissions, 14,263 (2009-2014) and 11,886 (2015-thereafter) tons for
NOX ozone season emissions, and 64,095 (2010-2014) and
44,866 (2015-thereafter) tons for SO2 emissions. Iowa's SIP
revision sets these budgets as the total amounts of allowances
available for allocation for each year under the EPA-administered cap-
and-trade programs.
Iowa has committed to revising a definition in all three CAIR rules
in order to fully ensure allowances can be traded among all sources
participating in the EPA-administered cap-and-trade programs as
intended. EPA discovered after review of other States' rules, but after
Iowa had adopted its CAIR rules, that there was an issue related to the
definition of ``permitting authority'' when it is revised to refer to a
specific State's permitting authority.
In each of Iowa's rules for CAIR, the EPA model trading rules were
revised to limit all references to ``permitting authority'' to refer to
the Iowa Department of Natural Resources. This
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change is acceptable in most, but not all, instances under the current
model rules. In certain definitions in the model rules incorporated by
Iowa (i.e., ``allocate'' or ``allocation,'' ``CAIR NOX
allowance,'' ``CAIR SO2 allowance,'' and ``CAIR
NOX Ozone Season allowance''), it is important that the term
``permitting authority'' cover permitting authorities in all States
that choose to participate in the respective EPA-administered trading
programs. This is necessary to ensure that all allowances issued in
each EPA-administered trading program are fungible and can be traded
and used for compliance with the allowance-holding requirement in any
State in the program.
On February 17, 2007, EPA provided a letter to Iowa that requested
and outlined necessary definition revisions. EPA received a letter from
Iowa on February 28, 2007, that provided a commitment to make the EPA
suggested rule revisions as soon as is practicable upon publication of
the final rule concerning the proposed Clean Air Mercury Rule (CAMR)
Federal plan. On April 11, 2007, EPA received an electronic
correspondence from Iowa stating that Iowa will, in any event, complete
these rule revisions before January 1, 2008. The State will be able to
simultaneously revise the ``permitting authority'' definition in all
cap-and-trade rules for both CAIR and CAMR, and properly update the
State's rule as necessary to meet the requirements of the EPA-
administered cap-and-trade-program for mercury.
The final rule concerning the CAMR Federal plan is expected to be
published before the earliest, major deadline for compliance with
requirements for source owners and operators under the CAIR trading
programs, i.e., the January 1, 2008, deadline for emissions monitoring
requirements under the CAIR Annual Trading Program. EPA expects that,
by timing adoption of the EPA requested rule revisions to be soon after
the publication of the final rule concerning the CAMR Federal plan, the
State will ensure the revisions to the definition of ``permitting
authority'' will be completed prior to any of the major compliance
deadlines for source owners and operators under the CAIR trading
programs. In the event the final rule concerning the CAMR Federal plan
is not published in the expected timeframe, the State will need to
ensure the necessary State rule revisions are completed and submitted
to EPA in advance of the January 1, 2008, monitoring deadline for the
CAIR NOX Annual Trading Program.
To be clear, EPA notes that it is not proposing to approve the
State's rule to comply with CAMR as part of this rulemaking. EPA will
propose a separate rulemaking for the Iowa rule relating to CAMR.
B. CAIR Cap-and-Trade Programs
The CAIR NOX annual and ozone season model trading rules
both largely mirror the structure of the NOX SIP Call model
trading rule in 40 CFR part 96, subparts A through I. While the
provisions of the NOX annual and ozone season model rules
are similar, there are some differences. For example, the
NOX annual model rule (but not the NOX ozone
season model rule) provides for a compliance supplement pool (CSP),
which is discussed below and under which allowances may be awarded for
early reductions of NOX annual emissions. As a further
example, the NOX ozone season model rule reflects the fact
that the CAIR NOX ozone season trading program replaces the
NOX SIP Call trading program after the 2008 ozone season and
is coordinated with the NOX SIP Call program. The
NOX ozone season model rule provides incentives for early
emissions reductions by allowing banked, pre-2009 NOX SIP
Call allowances to be used for compliance in the CAIR NOX
ozone season trading program. In addition, States have the option of
continuing to meet their NOX SIP Call requirement by
participating in the CAIR NOX ozone season trading program
and including all their NOX SIP Call trading sources in that
program.
The provisions of the CAIR SO2 model rule are also
similar to the provisions of the NOX annual and ozone season
model rules. However, the SO2 model rule is coordinated with
the ongoing Acid Rain SO2 cap-and-trade program under CAA
title IV. The SO2 model rule uses the title IV allowances
for compliance, with each allowance allocated for 2010-2014 authorizing
only 0.50 ton of emissions and each allowance allocated for 2015 and
thereafter authorizing only 0.36 ton of emissions. Banked title IV
allowances allocated for years before 2010 can be used at any time in
the CAIR SO2 cap-and-trade program, with each such allowance
authorizing 1 ton of emissions. Title IV allowances are to be freely
transferable among sources covered by the Acid Rain Program and sources
covered by the CAIR SO2 cap-and-trade program.
EPA also used the CAIR model trading rules as the basis for the
trading programs in the CAIR FIPs. The CAIR FIP trading rules are
virtually identical to the CAIR model trading rules, with changes made
to account for Federal rather than State implementation. The CAIR model
SO2, NOX annual, and NOX ozone season
trading rules and the respective CAIR FIP trading rules are designed to
work together as integrated SO2, NOX annual, and
NOX ozone season trading programs.
In the SIP revision, Iowa has chosen to implement its CAIR budgets
by requiring EGUs to participate in EPA-administered cap-and-trade
programs for SO2, NOX annual, and NOX
ozone season emissions. Iowa has adopted a full SIP revision that
adopts, with the changes discussed above and with certain allowed
changes discussed below, the CAIR model cap-and-trade rules for
SO2, NOX annual, and NOX ozone season
emissions.
C. NOX Allowance Allocations
Under the NOX allowance allocation methodology in the
CAIR model trading rules and in the CAIR FIP, NOX annual and
ozone season allowances are allocated to units that have operated for
five years, based on heat input data from a three-year period that are
adjusted for fuel type by using fuel factors of 1.0 for coal, 0.6 for
oil, and 0.4 for other fuels. The CAIR model trading rules and the CAIR
FIP also provide a new unit set-aside from which units without five
years of operation are allocated allowances based on the units' prior
year emissions.
States may establish in their SIP submissions a different
NOX allowance allocation methodology that will be used to
allocate allowances to sources in the States if certain requirements
are met concerning the timing of submission of units' allocations to
the Administrator for recordation and the total amount of allowances
allocated for each control period. In adopting alternative
NOX allowance allocation methodologies, States have
flexibility with regard to: (1) The cost to recipients of the
allowances, which may be distributed for free or auctioned; (2) the
frequency of allocations; (3) the basis for allocating allowances,
which may be distributed, for example, based on historical heat input
or electric and thermal output; and (4) the use of allowance set-asides
and, if used, their size.
Iowa has chosen to adopt the essential components of the CAIR
NOX annual and CAIR NOX ozone season model
trading rules concerning the allocation of allowances with two notable
exceptions. Language is provided in Iowa's rules that attempts to
clarify that allowances will be allocated in future years only ``to
meet the minimum timing requirements'' specified in the Federal
regulations. EPA understands that the language is intended to mean that
allocations will be determined by
[[Page 26044]]
the dates and only for the years identified or described in 40 CFR
96.141 and 40 CFR 96.341. Additionally, Iowa's CAIR NOX
Annual and CAIR NOX ozone rules establish permanent
allocations for specified units designated as ``existing units'' or
``new units'' and do not include provisions of the EPA's model rules
that call for adjusting the allocations for existing units to provide
allocations for future, new units. EPA is proposing to approve these
changes to the model rule provisions because the changes are consistent
with the flexibility that CAIR provides States with regard to
allocation methodologies.
D. Allocation of NOX Allowances From Compliance Supplement
Pool
The CAIR establishes a compliance supplement pool to provide an
incentive for early reductions in NOX annual emissions. The
CSP consists of 200,000 CAIR NOX annual allowances of
vintage 2009 for the entire CAIR region, and a State's share of the CSP
is based upon the projected magnitude of the emission reductions
required by CAIR in that State. States may distribute CSP allowances,
one allowance for each ton of early reduction, to sources that make
NOX reductions during 2007 or 2008 beyond what is required
by any applicable State or Federal emission limitation. States also may
distribute CSP allowances based upon a demonstration of need for an
extension of the 2009 deadline for implementing emission controls.
The CAIR annual NOX model trading rule establishes
specific methodologies for allocations of CSP allowances. States may
choose an allowed, alternative CSP allocation methodology to be used to
allocate CSP allowances to sources in the States.
Iowa has not chosen to modify the provisions of the CAIR
NOX annual model trading rule concerning the allocation of
allowances from the CSP. Iowa has chosen to distribute CSP allowances
using the allocation methodology provided in 40 CFR 96.143 and has
adopted this section by reference.
E. Individual Opt-in Units
The opt-in provisions of the CAIR SIP model trading rules allow
certain non-EGUs (i.e., boilers, combustion turbines, and other
stationary fossil-fuel-fired devices) that do not meet the
applicability criteria for a CAIR trading program to participate
voluntarily in (i.e., opt into) the CAIR trading program. A non-EGU may
opt into one or more of the CAIR trading programs. In order to qualify
to opt into a CAIR trading program, a unit must vent all emissions
through a stack and be able to meet monitoring, recordkeeping, and
recording requirements of 40 CFR part 75. The owners and operators
seeking to opt a unit into a CAIR trading program must apply for a CAIR
opt-in permit. If the unit is issued a CAIR opt-in permit, the unit
becomes a CAIR unit, is allocated allowances, and must meet the same
allowance-holding and emissions monitoring and reporting requirements
as other units subject to the CAIR trading program. The opt-in
provisions provide for two methodologies for allocating allowances for
opt-in units, one methodology that applies to opt-in units in general
and a second methodology that allocates allowances only to opt-in units
that the owners and operators intend to repower before January 1, 2015.
States have several options concerning the opt-in provisions.
States may adopt the CAIR opt-in provisions entirely or may adopt them
but exclude one of the methodologies for allocating allowances. States
may also decline to adopt the opt-in provisions at all.
Iowa has chosen to allow non-EGUs meeting certain requirements to
opt into the CAIR trading programs by adopting by reference the
entirety of EPA's model rule provisions for opt-in units in the CAIR
SO2, CAIR NOX annual, and CAIR NOX
ozone season trading programs.
VI. Proposed Actions
EPA is proposing to approve Iowa's full CAIR SIP revision submitted
on August 15, 2006. Under this SIP revision, Iowa is choosing to
participate in the EPA-administered cap-and-trade programs for
SO2, NOX annual, and NOX ozone season
emissions. EPA believes that the SIP revision meets the applicable
requirements in 40 CFR 51.123(o) and (aa), with regard to
NOX annual and NOX ozone season emissions, and 40
CFR 51.124(o), with regard to SO2 emissions. EPA is
proposing to determine that the SIP as revised will meet the
requirements of CAIR. If EPA finalizes this action as proposed, the
Administrator of EPA will also issue, without providing an opportunity
for a public hearing or an additional opportunity for written public
comment, a final rule to withdraw the CAIR FIPs concerning
SO2, NOX annual, and NOX ozone season
emissions for Iowa. The Administrator's action would delete and reserve
40 CFR 52.840 and 40 CFR 52.841.
VII. Statutory and Executive Order Reviews
Under Executive Order 12866 (58 FR 51735, October 4, 1993), this
action is not a ``significant regulatory action'' and therefore is not
subject to review by the Office of Management and Budget. For this
reason, this action is also not subject to Executive Order 13211,
``Actions Concerning Regulations That Significantly Affect Energy
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action
merely proposes to approve State law as meeting Federal requirements
and would impose no additional requirements beyond those imposed by
State law. Accordingly, the Administrator certifies that this proposed
rule would not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act (5 U.S.C.
601 et seq.). Because this action proposes to approve pre-existing
requirements under State law and would not impose any additional
enforceable duty beyond that required by State law, it does not contain
any unfunded mandate or significantly or uniquely affect small
governments, as described in the Unfunded Mandates Reform Act of 1995
(Pub. L. 104-4).
This proposal also does not have tribal implications because it
would not have a substantial direct effect on one or more Indian
tribes, on the relationship between the Federal Government and Indian
tribes, or on the distribution of power and responsibilities between
the Federal Government and Indian tribes, as specified by Executive
Order 13175 (65 FR 67249, November 9, 2000). This proposed action also
does not have Federalism implications because it would not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government, as
specified in Executive Order 13132 (64 FR 43255, August 10, 1999). This
action merely proposes to approve a State rule implementing a Federal
standard and will result, as a consequence of that approval, in the
Administrator's withdrawal of the CAIR FIP. It does not alter the
relationship or the distribution of power and responsibilities
established in the Clean Air Act. This proposed rule also is not
subject to Executive Order 13045 ``Protection of Children from
Environmental Health Risks and Safety Risks'' (62 FR 19885, April 23,
1997), because it would approve a State rule implementing a Federal
Standard.
In reviewing SIP submissions, EPA's role is to approve State
choices, provided that they meet the criteria of the Clean Air Act. In
this context, in the absence of a prior existing requirement for the
State to use voluntary consensus
[[Page 26045]]
standards (VCS), EPA has no authority to disapprove a SIP submission
for failure to use VCS. It would thus be inconsistent with applicable
law for EPA, when it reviews a SIP submission, to use VCS in place of a
SIP submission that otherwise satisfies the provisions of the Clean Air
Act. Thus, the requirements of section 12(d) of the National Technology
Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) do not apply.
This proposed rule would not impose an information collection burden
under the provisions of the Paperwork Reduction Act of 1995 (44 U.S.C.
3501 et seq.).
List of Subjects in 40 CFR Part 52
Environmental protection, Air pollution control, Electric
utilities, Intergovernmental relations, Nitrogen oxides, Ozone,
Particulate matter, Reporting and recordkeeping requirements, Sulfur
dioxide.
Dated: April 30, 2007.
John B. Askew,
Regional Administrator, Region 7.
[FR Doc. E7-8665 Filed 5-7-07; 8:45 am]
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