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Federal Register / Vol. 72, No.

145 / Monday, July 30, 2007 / Rules and Regulations 41453

State of Indiana submitted a source revision. Upon the effective date of personal information provided, unless
specific revision to its state approval of the Texas CAIR NOX the comment includes information
implementation plan for control of Annual Abbreviated SIP revision, EPA claimed to be Confidential Business
particulate matter in Title 326 of the by ministerial action will note in the Information (CBI) or other information
Indiana Administrative Code (IAC), Texas CAIR NOX Annual Federal the disclosure of which is restricted by
Rule 6.5–7, Section 13, which contains Implementation Plan’s (FIP) statute. Do not submit information
particulate matter emission limits for incorporated regulations that the Texas through http://www.regulations.gov or
Holy Cross Services Corporation, to rules for annual NOX allowances under e-mail, if you believe that it is CBI or
reflect current operating conditions of Phase 1 of CAIR and allocating otherwise protected from disclosure.
the boilers at St. Mary’s College, located allowances from the CSP apply, rather The http://www.regulations.gov Web
in Notre Dame, Indiana. The revision in than the Federal FIP rules. site is an ‘‘anonymous access’’ system,
326 IAC 6.5–7–13 also changes the The intended effect of this action is to which means that EPA will not know
source name from St. Mary’s to Holy reduce NOX emissions from the State of your identity or contact information
Cross Services Corporation (Saint Texas that are contributing to unless you provide it in the body of
Mary’s Campus). nonattainment of the PM2.5 National your comment. If you send an e-mail
(i) Incorporation by reference. Indiana Ambient Air Quality Standard (NAAQS comment directly to EPA without going
Administrative Code Title 326: Air or standard) in downwind states. This through http://www.regulations.gov,
Pollution Control Board, Article 6.5: PM action is being taken under section 110 your e-mail address will be
Limitations Except Lake County, Rule 7: of the Federal Clean Air Act (the Act or automatically captured and included as
St. Joseph County, Section 13: Holy CAA). part of the comment that is placed in the
Cross Services Corporation (Saint DATES: This rule is effective on public docket and made available on the
Mary’s Campus). Approved by the September 28, 2007 without further Internet. If you submit an electronic
Attorney General January 18, 2007. notice, unless EPA receives relevant comment, EPA recommends that you
Approved by the Governor January 23, adverse comment by August 29, 2007. If include your name and other contact
2007. Filed with the Publisher January EPA receives such comment, EPA will information in the body of your
26, 2007. Published on the Indiana publish a timely withdrawal in the comment along with any disk or CD–
Register Web site February 14, 2007, Federal Register informing the public ROM submitted. If EPA cannot read
Document Identification Number that this rule will not take effect. your comment due to technical
(DIN):20070214–IR–326060121FRA. difficulties and cannot contact you for
ADDRESSES: Submit your comments,
Effective February 25, 2007. clarification, EPA may not be able to
identified by Docket ID No. EPA–R06–
* * * * * OAR–2007–0252, by one of the consider your comment. Electronic files
[FR Doc. E7–14476 Filed 7–27–07; 8:45 am] following methods: should avoid the use of special
BILLING CODE 6560–50–P (1) http://www.regulations.gov : characters and any form of encryption
Follow the on-line instructions for and should be free of any defects or
submitting comments. viruses. For additional information
ENVIRONMENTAL PROTECTION (2) E-mail: Mr. Jeff Robinson at about EPA’s public docket, visit the EPA
AGENCY robinson.jeffrey@epa.gov. Please also cc Docket Center homepage at http://
the person listed in the FOR FURTHER www.epa.gov/epahome/dockets.htm.
40 CFR Parts 52 and 97
INFORMATION CONTACT paragraph below. Docket: All documents in the docket
[EPA–R06–OAR–2007–0252; FRL–8446–3] (3) U.S. EPA Region 6 ‘‘Contact Us’’ are listed in the http://
Web site: http://epa.gov/region6/ www.regulations.gov index. Although
Approval and Promulgation of r6coment.htm. Please click on ‘‘6PD’’ listed in the index, some information is
Implementation Plans; Texas; Clean (Multimedia) and select ‘‘Air’’ before not publicly available, e.g., CBI or other
Air Interstate Rule Nitrogen Oxides submitting comments. information the disclosure of which is
Annual Trading Program (4) Fax: Mr. Jeff Robinson, Chief, Air restricted by statute. Certain other
AGENCY: Environmental Protection Permits Section (6PD–R), at fax number material, such as copyrighted material,
Agency (EPA). 214–665–6762. will be publicly available only in hard
ACTION: Direct final rule. (5) Mail: Mr. Jeff Robinson, Chief, Air copy. Publicly available docket
Permits Section (6PD–R), Environmental materials are available either
SUMMARY: EPA is taking a direct final Protection Agency, 1445 Ross Avenue, electronically in http;//
action to approve a revision to the Texas Suite 1200, Dallas, Texas 75202–2733. www.regulations.gov or in hard copy at
State Implementation Plan (SIP) (6) Hand or Courier Delivery: Mr. Jeff the Air Permits Section (6PD–R),
submitted by the State of Texas on Robinson, Chief, Air Permits Section Environmental Protection Agency, 1445
August 4, 2006, as the Texas Clean Air (6PD–R), Environmental Protection Ross Avenue, Suite 700, Dallas, Texas
Interstate Rule (CAIR) Nitrogen Oxides Agency, 1445 Ross Avenue, Suite 1200, 75202–2733. The file will be made
(NOX) Annual Abbreviated SIP. The Dallas, Texas 75202–2733. Such available by appointment for public
abbreviated SIP revision EPA is deliveries are accepted only between the inspection in the Region 6 FOIA Review
approving includes the Texas hours of 8:30 a.m. and 4:30 p.m. Room between the hours of 8:30 a.m.
methodologies for allocation of annual weekdays except for legal holidays. and 4:30 p.m. weekdays except for legal
NOX allowances for Phase 1 of CAIR, Special arrangements should be made holidays. Contact the person listed in
the control periods 2009 through 2014, for deliveries of boxed information. the FOR FURTHER INFORMATION CONTACT
and for allocating allowances from the Instructions: Direct your comments to paragraph below to make an
compliance supplement pool (CSP) in Docket ID No. EPA–R06–OAR–2007– appointment. If possible, please make
the CAIR NOX annual trading program. 0252. EPA’s policy is that all comments the appointment at least two working
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EPA has determined that the Texas received will be included in the public days in advance of your visit. A 15 cent
CAIR NOX Annual Abbreviated SIP docket without change and may be per page fee will be charged for making
revision satisfies the applicable made available online at http:// photocopies of documents. On the day
requirements of a CAIR abbreviated SIP www.regulations.gov, including any of the visit, please check in at the EPA

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41454 Federal Register / Vol. 72, No. 145 / Monday, July 30, 2007 / Rules and Regulations

Region 6 reception area on the seventh the CAIR NOX annual trading program, Texas rules for annual NOX allowances
floor at 1445 Ross Avenue, Suite 700, as an abbreviated revision to the Texas would apply, rather than the Federal
Dallas, Texas. SIP. EPA is approving the Texas rules, upon the effective date of
The State submittal related to this SIP abbreviated SIP revision as meeting 40 approval.
revision, and which is part of the EPA CFR 51.123(p)(1) and (p)(2). We will be We are publishing this rule without
docket, is also available for public taking action on the remaining parts of prior proposal because we view this as
inspection at the State Air Agency listed the Texas NOX Annual and SO2 CAIR a noncontroversial amendment and
below during official business hours by SIP revision submittal at a later date and anticipate no relevant adverse
appointment: in future Federal Registers. Texas is not comments. However, in the proposed
Texas Commission on Environmental subject to the CAIR NOX ozone season rules section of this Federal Register
Quality, Office of Air Quality, 12124 trading program. Please see the publication, we are publishing a
Park 35 Circle, Austin, Texas 78753. Technical Support Document (TSD) for separate document that will serve as the
FOR FURTHER INFORMATION CONTACT: If further information. The TSD is proposal to approve the SIP revision if
you have questions concerning today’s available as specified in the section of relevant adverse comments are received.
proposal, please contact Ms. Adina this document identified as ADDRESSES. This rule will be effective on September
Wiley (6PD–R), Air Permits Section, The provisions of the Texas CAIR 28, 2007 without further notice unless
Environmental Protection Agency, NOX Annual Federal Implementation we receive relevant adverse comment by
Region 6, 1445 Ross Avenue (6PD–R), Plan (FIP) at 40 CFR 52.2283 require August 29, 2007. If we receive relevant
Suite 1200, Dallas, TX 75202–2733. The owners and operators of NOX sources adverse comments, we will publish a
telephone number is (214) 665–2115. located in Texas to meet the Federal timely withdrawal in the Federal
Ms. Wiley can also be reached via NOX annual trading program found at Register informing the public that the
electronic mail at wiley.adina@epa.gov. 40 CFR part 97. This Federal trading rule will not take effect. We will address
program’s rules include provisions at 40 all public comments in a subsequent
SUPPLEMENTARY INFORMATION:
CFR 97.144(a) and (b) that if EPA final rule based on the proposed rule.
Throughout this document wherever, approves the Texas abbreviated SIP We will not institute a second comment
any reference to ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is revision for NOX annual and CSP period on this action. Any parties
used, we mean EPA. allocation methodologies, then the interested in commenting must do so
Federal NOX annual and CSP allocation now. Please note that if we receive
Table of Contents
methodologies no longer apply. Instead, adverse comment on an amendment,
I. What Action is EPA Taking? if EPA approves the Texas NOX annual paragraph, or section of this rule and if
II. What is the Regulatory History of CAIR
allocation methodology into the Texas that provision may be severed from the
and the CAIR FIP?
III. What are the General Requirements of SIP, then EPA under 40 CFR 52.2283 remainder of the rule, we may adopt as
CAIR and the CAIR FIP? and 97.144(a) will not make allocations final those provisions of the rule that are
IV. What are the Types of CAIR SIP for the CAIR NOX sources in Texas but not the subject of an adverse comment.
Submittals? will use the Texas SIP rules for
II. What Is the Regulatory History of the
V. What is EPA’s Analysis of the Texas CAIR allocating annual NOX allowances to
CAIR and the CAIR FIP?
NOX Annual Abbreviated SIP Submittal? sources in Texas for Phase 1 of CAIR
A. State Budget for NOX Annual Allowance (2009–2014). The Texas NOX EPA promulgated the CAIR on May
Allocations methodology for allocating the CSP in 12, 2005 (70 FR 25162). In this rule,
B. CAIR NOX Annual Cap-and-Trade the CAIR NOX Annual Trading Program EPA determined that 28 States and the
Programs District of Columbia contribute
will be used to allocate allowances from
C. Applicability Provisions for non-EGU significantly to nonattainment and
NOX SIP Call Sources the CSP, instead of the federal
methodology for allocating allowances interfere with maintenance of the
D. NOX Annual Allowance Allocations
E. Allocation of NOX Allowances from the from the CSP. EPA under 40 CFR national ambient air quality standards
Compliance Supplement Pool 52.2283 and 97.144(b) will not make (NAAQS) for fine particles (PM2.5) and/
F. Individual Opt-in Units allocations for the CSP for CAIR NOX or 8-hour ozone in downwind States in
VI. Final Action sources in Texas and will record the the eastern part of the country. As a
VII. Statutory and Executive Order Reviews allocations of the Texas CSP made result, EPA required those upwind
under the approved SIP revision. States to revise their SIPs to include
I. What Action is EPA Taking?
If EPA’s direct final action approving control measures that reduce emissions
On April 4, 2006, the State of Texas the Texas abbreviated SIP becomes of SO2, which is a precursor to PM2.5
submitted a revision to the Texas SIP. effective, then EPA is not required to formation, and/or NOX, which is a
The submittal consists of new take any rulemaking action to change precursor to both ozone and PM2.5
regulations to implement the NOX the Federal CAIR NOX annual trading formation. For jurisdictions that
Annual and SO2 CAIR programs in the program in 40 CFR part 97 or to change contribute significantly to downwind
state. The affected state regulations that the Texas CAIR FIP for NOX annual PM2.5 nonattainment, CAIR sets annual
we are approving today as part of the emissions in 40 CFR 52.2283. Rather State-wide emission reduction
Texas CAIR NOX Annual Abbreviated EPA, by ministerial action, simply notes requirements (i.e., budgets) for SO2 and
SIP are 30 TAC, Chapter 101, in Appendix A, 1 and 2, to Subpart EE annual State-wide emission reduction
Subchapter H, Division 7, sections of 40 CFR part 97, that Texas has an requirements for NOX. Similarly, for
101.503, 101.504(a)(1), 101.504(b), approved SIP revision for NOX annual jurisdictions that contribute
101.506(a)(1), 101.506(b)(1), 101.506(c)– allowances for Phase 1 and for NOX significantly to 8-hour ozone
(f), and 101.508. EPA is taking a direct allowance allocations from the Texas nonattainment, CAIR sets statewide
final action to approve the State’s NOX CSP. Since the Federal CAIR NOX emission reduction requirements for
annual allocation methodology for annual trading program’s rules at 40 NOX for the ozone season (defined at 40
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Phase 1 (the control periods 2009 CFR part 97 provide for automatic CFR 97.302 as May 1st to September
through 2014) and the State’s revision of the Texas CAIR FIP for 30th). Under CAIR, States may
methodology for allocating the annual NOX emissions upon approval of implement these emission budgets by
compliance supplement pool (CSP) in such an abbreviated SIP revision, the participating in the EPA-administered

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cap-and-trade programs or by adopting On April 28, 2006, EPA published choose to meet the CAIR requirements
and submitting for EPA approval any two more CAIR-related final rules that by selecting an option that requires
other control measures. added the States of Delaware and New EGUs to participate in the EPA-
EPA found that Texas significantly Jersey to the list of States subject to administered CAIR cap-and-trade
contributed to nonattainment of the CAIR for PM2.5 and announced EPA’s programs. For such States, EPA has
PM2.5 standard in Illinois, resulting in final decisions on reconsideration of provided two approaches for submitting
Texas being subject to the SO2 and five issues without making any and obtaining approval for CAIR SIP
annual NOX requirements of CAIR. substantive changes to the CAIR revisions. States may submit full SIP
There are no punitive consequences for requirements. On December 13, 2006, revisions that adopt the model CAIR
Texas failing to submit SO2 and NOX EPA published minor, non-substantive cap-and-trade rules. If approved, these
Annual CAIR SIPs. revisions that serve to clarify CAIR and SIP revisions will fully replace the CAIR
CAIR sets forth what must be the CAIR FIP. FIPs. Alternatively, States may submit
included in SIPs to address the abbreviated SIP revisions. The
requirements of section 110(a)(2)(D) of III. What Are the General Requirements
of CAIR and the CAIR FIP? provisions in the abbreviated SIP
the Act with regard to interstate revision, if approved into a State’s SIP,
transport for the 8-hour ozone and PM2.5 CAIR establishes State-wide emission will not replace that State’s CAIR FIP;
NAAQS. EPA made national findings, budgets for SO2 and NOX and is to be however, the requirements for the CAIR
effective May 25, 2005, that the affected implemented in two phases. The first FIPs at 40 CFR part 52 incorporate the
States had failed to submit SIPs meeting phase of NOX reductions starts in 2009 provisions of the Federal CAIR trading
the requirements of section 110(a)(2)(D). and continues through 2014, while the programs in 40 CFR part 97. The Federal
The SIPs were due in July 2000, 3 years first phase of SO2 reductions starts in CAIR trading programs in 40 CFR part
after the promulgation of the 8-hour 2010 and continues through 2014. The 97 provide that whenever EPA approves
ozone and PM2.5 NAAQS. These May second phase of reductions for both an abbreviated SIP revision, the
25, 2005, findings started a 2-year clock NOX and SO2 starts in 2015 and provisions in the abbreviated SIP
for EPA to promulgate a FIP to address continues thereafter. CAIR requires revision will be used in place of or in
the requirements of section 110(a)(2)(D). States to implement the budgets by conjunction with, as appropriate, the
Under CAA section 110(c)(1), EPA may either: (1) Requiring EGUs to participate corresponding provisions in 40 CFR part
issue a FIP anytime after such findings in the EPA-administered cap-and-trade 97 of the State’s CAIR FIP (e.g., the NOX
are made and must do so within two programs: or, (2) adopting other control allowance allocation methodology).
years unless a SIP revision correcting measures of the State’s choosing and A State submitting an abbreviated SIP
the deficiency is approved by EPA demonstrating that such control revision, may submit limited SIP
before the FIP is promulgated. measures will result in compliance with revisions to tailor the CAIR FIP’s cap-
On April 28, 2006, EPA promulgated the applicable State SO2 and NOX and-trade programs to the state
FIPs for all States covered by CAIR in budgets. submitting the revision. An abbreviated
order to ensure the emissions reductions The May 12, 2005 and April 28, 2006
required by CAIR are achieved on SIP revision may establish certain
CAIR rules provide model rules that
schedule. See 40 CFR 52.35 and 52.36. applicability and allowance allocation
States must adopt (with certain limited
Each CAIR State is subject to the FIP provisions instead of or in conjunction
changes, if desired) if they want to
until the State fully adopts, and EPA with the corresponding provisions in
participate in the EPA-administered
approves, a SIP revision meeting the the CAIR FIP’s rules in that State.
trading programs. The December 13,
requirements of CAIR. The CAIR FIPs Specifically, an abbreviated SIP revision
2006, revisions to CAIR and the CAIR
require certain EGUs to participate in may:
FIPs were non-substantive and,
the EPA-administered CAIR SO2, NOX (1) Include NOX SIP Call trading
therefore, do not affect EPA’s evaluation
annual, and NOX ozone-season trading sources that are not EGUs under CAIR
of a State’s SIP revision.
programs, as appropriate, found at 40 With two exceptions, only States that in the CAIR FIP’s NOX ozone season
CFR part 97. The CAIR FIPs’ SO2, NOX choose to meet the requirements of trading program;
annual, and NOX ozone season trading CAIR through methods that exclusively (2) Provide for allocation of NOX
programs impose essentially the same regulate EGUs are allowed to participate annual or ozone season allowances by
requirements as, and are integrated in the EPA-administered trading the State, rather than the Administrator,
with, the respective CAIR SIP trading programs. One exception is for States and using a methodology chosen by the
programs. The integration of the CAIR that adopt the opt-in provisions of the State;
FIP and SIP trading programs means model rules to allow non-EGUs (3) Provide for allocation of NOX
that these trading programs will work individually to opt into the EPA- annual allowances from the CSP by the
together to create effectively a single administered trading programs. The State, rather than by the Administrator,
trading program for each regulated other exception is for States that include and using the State’s choice of allowed,
pollutant (SO2, NOX annual, and NOX all non-EGUs from their NOX SIP Call alternative methodologies; or
ozone season) in all States covered by trading programs in their CAIR NOX (4) Allow units that are not otherwise
the CAIR FIPs’ or SIPs’ trading program ozone season trading programs. Texas CAIR units to opt individually into the
for that pollutant. The CAIR FIPs also was not subject to the NOX SIP Call and CAIR FIP’s cap-and-trade programs
allow States to submit abbreviated SIP is not subject to the NOX ozone season under the opt-in provisions in the CAIR
revisions that, if approved by EPA, will requirements of CAIR; therefore, the FIP’s rules.
automatically replace or supplement the second exception is not applicable. With approval of an abbreviated SIP
corresponding CAIR FIP provisions revision, the State’s CAIR FIP remains
(e.g., the methodology for allocating IV. What Are the Types of CAIR SIP in place, as tailored to sources in that
NOX allowances to sources in the state), Submittals? State by the approved SIP revision.
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while the CAIR FIPs remain in place for States have the flexibility to choose Abbreviated SIP revisions can be
all other provisions. See 40 CFR the type of control measures they will submitted in lieu of, or as part of, CAIR
51.123(p)(1)–(3), 71 FR 25328 and 25339 use to meet the requirements of CAIR. full SIP revisions. States may want to
(April 28, 2006). EPA anticipates that most States will designate part of their full SIP as an

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abbreviated SIP for EPA to act on first CFR part 96 subparts A through I. While fuel factors of 1.0 for coal, 0.6 for oil,
when the timing of the State’s the provisions of the NOX annual FIPs and 0.4 for other fuels. The CAIR model
submission might not provide EPA with are similar, there are some differences. trading rules and the CAIR FIPs’ NOX
sufficient time to approve the full SIP For example, the NOX Annual FIPs annual trading program also provide a
prior to the deadline for recording NOX provide for a CSP, which is discussed new unit set-aside from which units
allocations. This will help ensure that below and under which allowances may without five years of operation are
the elements of the trading programs be awarded for early reductions of NOX allocated allowances based on the units’
where flexibility is allowed are annual emissions. prior year emissions.
implemented according to the State’s EPA used the CAIR model trading The CAIR FIPs’ provisions provide
decisions. Submission of an abbreviated rules as the basis for the SO2, NOX States with the flexibility to establish a
SIP revision does not preclude future annual, and NOX ozone season trading different NOX allowance allocation
submission of a CAIR full SIP revision. programs incorporated by reference into methodology that will be used to
In this case, Texas asked EPA to process the States’ CAIR FIPs. The CAIR FIPs’ allocate allowances to sources in a State
the submittal as an abbreviated SIP trading programs’ rules are virtually if certain requirements are met
revision while the Texas Legislature identical to the CAIR model trading concerning the timing of submission of
considered changes in the State’s CAIR rules, with changes made to account for units’ allocations to the Administrator
authority. Texas anticipates submitting federal rather than state for recordation and the total amount of
a revised NOX and SO2 CAIR SIP later implementation. The CAIR model SO2, allowances allocated for each control
for full approval by EPA. NOX annual trading, and NOX ozone period. In adopting alternative NOX
season trading rules and the respective allowance allocation methodologies,
V. What Is EPA’s Analysis of Texas’s CAIR FIPs’ trading programs are States have flexibility with regard to:
CAIR NOX Annual Abbreviated SIP designed to work together as integrated (1) The cost to recipients of the
Submittal? SO2, NOX annual, and NOX ozone allowances, which may be distributed
A. State Budget for NOX Annual season trading programs. for free or auctioned;
Allowance Allocations Texas is subject to the CAIR FIP for (2) The frequency of allocations;
PM2.5. This PM2.5 CAIR FIP for Texas, 40 (3) The basis for allocating
The CAIR NOX annual budget for CFR 52.2283 and 52.2284, requires allowances, which may be distributed,
Texas was developed from historical owners or operators of each NOX and for example, based on historical heat
heat input data for EGUs. Using these SO2 source located in Texas to meet the input or electric and thermal output;
data, EPA calculated annual regional requirements of the Federal CAIR NOX and
heat input values, which were Annual and SO2 Trading Programs in 40 (4) The use of allowance set-asides
multiplied by 0.15 lb/mmBtu, for phase CFR part 97. Consistent with the and, if used, their size.
1, and 0.125 lb/mmBtu, for phase 2, to flexibility given to States, States may Consistent with the flexibility given to
obtain regional NOX budgets for 2009– submit abbreviated SIP revisions that States in their CAIR FIPs’ provisions,
2014 and for 2015 and thereafter, will replace or supplement, as Texas has chosen to replace the
respectively. EPA derived the Texas appropriate, certain provisions of its provisions of the Texas CAIR NOX
NOX annual budget from the regional CAIR FIP’s trading programs. The Annual FIP concerning the allocation of
budgets using Texas heat input data August 4, 2006, submission from Texas NOX annual allowances for Phase 1
adjusted by fuel factors. is such an abbreviated SIP revision and (2009–2014) with its own methodology.
The CAIR SIP requirements and the is for the NOX annual trading program. The Texas Commission on
Texas CAIR NOX annual FIP establish Environmental Quality was directed by
the budgets for Texas as 181,014 tons of C. Applicability Provisions for Non-EGU House Bill 2481 of the 79th Texas
NOX annual emissions for 2009–2014 NOX SIP Call Sources Legislature to establish regulations that
and 150,845 tons of NOX annual In general, the CAIR FIPs’ trading will allocate NOX allowances at no cost
emissions in 2015 and thereafter. programs apply to any stationary, fossil- to the CAIR subject units in Texas.
Texas’s submitted rules at 30 TAC, fuel-fired boiler or stationary, fossil- Accordingly, the TCEQ has adopted
Chapter 101, Subchapter H, Division 7, fuel-fired combustion turbine serving at provisions establishing the annual NOX
section 101.503(a) establish that the any time, since the later of November allocation methodology at 30 TAC,
Texas NOX annual budgets are as listed 15, 1990 or the start-up of the unit’s Chapter 101, Subchapter H, Division 7,
in 40 CFR 51.123 and 96.140 (181,014 combustion chamber, a generator with sections 101.503, 101.504, and 101.506.
tons in 2009–2014 and 150,845 tons in nameplate capacity of more than 25 Section 101.503(a) establishes that the
2015 and thereafter). The Texas MWe producing electricity for sale. Texas NOX Annual budgets are as listed
abbreviated SIP revision, being Because Texas was not included in the in 40 CFR 96.140 (181,014 tons in 2009–
approved today, does not affect these NOX SIP Call trading program and is not 2014 and 150,845 tons in 2015 and
budgets, which are total amounts of subject to the NOX ozone season thereafter). Additionally, section
allowances available for allocation for provisions of CAIR, Texas does not have 101.503(b) establishes that the Texas
each year under the EPA-administered or need the option of expanding the NOX Annual Trading Program will have
cap-and-trade programs under the Texas applicability provisions of the CAIR a new unit set-aside of 9.5 percent of the
CAIR NOX Annual FIP. In short, the NOX Ozone Season Trading Program. NOX trading budget for both Phase 1
Texas abbreviated SIP revision only and Phase 2 of CAIR. (We are not taking
D. NOX Annual Allowance Allocations action today on the Phase 2 allowance
affects allocations of NOX annual
allowances under the established budget Under the NOX allowance allocation allocation methodology. Please see the
for 2009–2014. methodology in the CAIR model trading TSD for further information.)
rules and in the CAIR FIPs’ NOX annual Section 101.504 establishes the dates
B. CAIR NOX Annual Cap-and-Trade trading program, NOX annual by which the TCEQ Executive Director
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Program allowances are allocated to units that must submit NOX annual allocations to
The CAIR NOX annual FIPs for the have operated for five years, based on EPA for recordation in CAIR compliance
States largely mirror the structure of the heat input data from a three-year period accounts. Per section 101.504(a)(1), the
NOX SIP Call model-trading rule in 40 that are adjusted for fuel type by using TCEQ Executive Director will submit

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NOX allowances for units commencing new unit set-aside after the TCEQ allowances may be allocated, upon
operation before January 1, 2001 Executive Director has made allocations request by a CAIR unit’s designated
(referred to as existing units), by to the new units, the Executive Director representative, to (1) A unit that has
October 31, 2006 for the 2009–2014 will proportionally allocate the made early NOX emission reductions in
control periods. Allocations for these remaining allowances to existing units 2007 and 2008, or (2) to a CAIR unit
existing units will be distributed according to the provisions of section whose compliance during the 2009
proportionally based on the unit’s share 101.506(e). Like the requirements for the control period would create an undue
of the total baseline heat input existing units, the Texas allocation risk to the reliability of electricity
according to section 101.506(c). The methodology at 101.506(f) requires that supply during such control period. In
baseline heat input, calculated per the part 75 monitoring, recordkeeping, each instance, the CAIR designated
section 101.506(b)(1), for each unit is and reporting requirements be used to representative of a CAIR unit must
the average of the three highest amounts determine a unit’s total tons of NOX submit a written request for CSP
of the unit’s adjusted control period emissions during a calendar year to the allowances to the TCEQ Executive
heat input for 2000–2004. A unit’s extent the unit was otherwise subject to Director by July 1, 2009. The TCEQ
adjusted control period heat input is part 75. Or, if a unit was not otherwise Executive Director will determine
found by multiplying the control period subject to part 75, the best available data allocations of the CSP and submit this
heat input by a fuel-adjustment factor as reported to the TCEQ Executive Director information to EPA by November 30,
follows: 0.90 if the unit is coal-fired can be used. 2009.
during the year; 0.50 if the unit is E. Allocation of NOX Allowances From F. Individual Opt-In Units
natural gas-fired during the year; and the Compliance Supplement Pool
0.30 if the unit is not coal or natural gas- The opt-in provisions of the CAIR and
fired during the year. Section 101.506(f) The CSP provides an incentive for the States FIPs’ provisions allow for
provides that a unit’s control period early reductions in NOX annual certain non-EGUs (i.e., boilers,
heat input, and a unit’s status as coal- emissions. The CSP consists of 200,000 combustion turbines, and other
fired or natural gas-fired for a calendar CAIR NOX annual allowances of vintage stationary fossil-fuel-fired devices) that
year must be determine in accordance 2009 for the entire CAIR region, and a do not meet the applicability criteria for
with the monitoring, recordkeeping, and State’s share of the CSP is based upon a CAIR trading program to participate
reporting requirements of 40 CFR part the State’s share of the projected voluntarily in (i.e., opt into) the CAIR
75 to the extent the unit was otherwise emission reductions under CAIR; trading programs. A non-EGU may opt
Texas’s share of the CSP is 772 NOX into one or more of the CAIR trading
subject to the requirements of part 75 for
allowances. States may distribute CSP programs. In order to qualify to opt into
the year. Or, if a unit was not otherwise
allowances, one allowance for each ton a CAIR trading program, a unit must
subject to part 75, the best available data
of early reduction, to sources that make vent all emissions through a stack and
reported to the TCEQ Executive Director
NOX reductions during 2007 or 2008 be able to meet monitoring,
can be used.
beyond what is required by any recordkeeping, and reporting
Under section 101.504(b), the TCEQ applicable State or Federal emission requirements of 40 CFR part 75. The
Executive Director will submit NOX limitation. States also may distribute owners and operators seeking to opt a
allowances for units commencing CSP allowances based upon a unit into a CAIR trading program must
operation on or after January 1, 2001 demonstration of need for an extension apply for a CAIR opt-in permit. If the
(referred to as new units), by October 31 of the 2009 deadline for implementing unit is issued a CAIR opt-in permit, the
of the applicable control period, emission controls. unit becomes a CAIR unit, is allocated
beginning in 2009. Section 101.506(b)(1) The CAIR and the Texas CAIR NOX allowances, and must meet the same
specifies that for each control period in Annual FIP’s provisions allocate 772 allowance holding and emissions
2009–2014, allowances for new units NOX allowances to the Texas CSP (40 monitoring and reporting requirements
are allocated from the 9.5 percent new CFR 51.123 and 97.143) and establish as other units subject to that CAIR
unit set-aside. The new unit set aside specific methodologies for allocations of trading program. The opt-in provisions
allocation methodology is outlined in CSP allowances. States may choose an provide for two methodologies for
section 101.506(d). For the first control allowed, alternative CSP allocation allocating allowances for opt-in units,
period in which a CAIR NOX unit methodology to be used to allocate CSP one methodology that applies to opt-in
commences commercial operation, such allowances to sources in those States. units in general and a second
unit will not receive a NOX allocation Consistent with the flexibility given to methodology that allocates allowances
from the new unit set-aside. The CAIR States in the CAIR FIPs, Texas has only to opt-in units that the owners and
designated representative of a new unit chosen to modify the provisions of the operators intend to repower before
must submit a written request for new Texas CAIR NOX Annual FIP January 1, 2015.
unit allowances by July 1 of the first concerning the allocation of allowances States have several options
control period for which the allowance from the CSP. The Texas rules distribute concerning the opt-in provisions. The
is requested and after the date that the CSP allowances using an allocation rules for each of the States’ CAIR FIPs’
unit commences commercial operation. methodology that is substantively trading programs include opt-in
The request for allowances from the identical to the provisions in 40 CFR provisions that are essentially the same
new unit set-aside cannot exceed the 96.143. The provisions for the allocation as those in the respective CAIR SIP
unit’s total tons of NOX emissions as of CSP allowances in the Texas program model rules, except that the States’
reported to EPA for the calendar year are found at section 101.508 of 30 TAC CAIR FIPs’ opt-in provisions become
immediately preceding such control Chapter 101. Section 101.508 authorizes effective in a State only if the State’s
period. The TCEQ Executive Director the Texas Commission on abbreviated SIP revision adopts the opt-
will review all requests for allowances Environmental Quality Executive in provisions. The State may adopt the
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from the new unit set-aside and Director to allocate for the control opt-in provisions entirely or may adopt
distribute proportionally based on a period in 2009 up to the amount of CSP them but exclude one of the allowance
unit’s share of the total requested allowances designated for Texas in 40 allocation methodologies. The State also
allowances. If allowances remain in the CFR 96.143 (772 tons of NOX). The CSP has the option of not adopting any opt-

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41458 Federal Register / Vol. 72, No. 145 / Monday, July 30, 2007 / Rules and Regulations

in provisions in the abbreviated SIP not have a significant, adverse effect on policy on environmental justice.
revision and thereby providing for its the supply, distribution, or use of Because this rule merely approves a
CAIR FIP’s trading programs to be energy, this action is also not subject to state rule implementing a Federal
implemented in the State without the Executive Order 13211, ‘‘Actions standard, EPA lacks the discretionary
ability for units to opt into the Concerning Regulations That authority to modify today’s regulatory
programs. Significantly Affect Energy Supply, decision on the basis of environmental
Consistent with the flexibility given to Distribution, or Use’’ (66 FR 28355, May justice considerations.
States in the FIPs’ provisions, Texas has 22, 2001). This action merely approves In reviewing SIP submissions, EPA’s
chosen not to allow non-EGUs to state law as meeting Federal role is to approve State choices,
participate in the Texas CAIR FIP NOX requirements and imposes no additional provided that they meet the criteria of
annual trading program. Texas is not requirements beyond those imposed by the Act. In this context, in the absence
subject to the CAIR NOX ozone season state law. Accordingly, the of a prior existing requirement for the
FIP so the opt-in provisions for the Administrator certifies that this rule State to use voluntary consensus
CAIR FIP NOX ozone season trading will not have a significant economic standards (VCS), EPA has no authority
program are not applicable. We are not impact on a substantial number of small to disapprove a SIP submission for
taking any action today on the Texas entities under the Regulatory Flexibility failure to use VCS. It would thus be
CAIR SO2 SIP submittal. Act (5 U.S.C. 601 et seq.). Because this inconsistent with applicable law for
rule approves pre-existing requirements EPA, when it reviews a SIP submission,
VI. Final Action
under state law and does not impose to use VCS in place of a SIP submission
EPA is approving a revision to the any additional enforceable duty beyond that otherwise satisfies the provisions of
Texas SIP, the Texas CAIR NOX Annual that required by state law, it does not the Act. Thus, the requirements of
Abbreviated SIP revision, submitted on contain any unfunded mandate or section 12(d) of the National
August 4, 2006, by the State of Texas Technology Transfer and Advancement
significantly or uniquely affect small
(Texas regulations, 30 TAC, Chapter Act of 1995 (15 U.S.C. 272 note) do not
governments, as described in the
101, Subchapter H, Division 7, sections apply. This rule does not impose an
Unfunded Mandates Reform Act of 1995
101.503, 101.504(a)(1), 101.504(b), information collection burden under the
(Pub. L. 104–4).
101.506(a)(1), 101.506(b)(1), and provisions of the Paperwork Reduction
101.506(c)–(f), and 101.508. Texas is This rule also does not have tribal
Act of 1995 (44 U.S.C. 3501 et seq.).
covered by the PM2.5 CAIR FIP, which implications because it will not have a
requires participation in the EPA- substantial direct effect on one or more List of Subjects
administered CAIR FIP cap-and-trade Indian tribes, on the relationship 40 CFR Part 52
programs for SO2 and NOX annual between the Federal Government and
Indian tribes, or on the distribution of Environmental protection, Air
emissions. Under this abbreviated SIP
power and responsibilities between the pollution control, Intergovernmental
revision and consistent with the
Federal Government and Indian tribes, relations, Nitrogen dioxide, Ozone,
flexibility given to Texas in its CAIR
as specified by Executive Order 13175 Particulate matter, Reporting and
NOX Annual FIP’s provisions, the Texas
(65 FR 67249, November 9, 2000). This recordkeeping requirements, Sulfur
provisions for allocating allowances
action also does not have Federalism oxides.
under the Texas CAIR FIP’s NOX annual
trading program for Phase 1 (2009–2014) implications because it does not have 40 CFR Part 97
of CAIR are approved as part of the substantial direct effects on the states,
Environmental protection, Air
Texas SIP. In addition, Texas provisions on the relationship between the national
pollution control, Administrative
that establish a methodology for government and the states, or on the
practice and procedure,
allocating NOX allowances in the CSP distribution of power and
Intergovernmental relations, Nitrogen
are approved as part of the Texas SIP. responsibilities among the various oxides, Ozone, Reporting and
The abbreviated SIP revision meets the levels of government, as specified in recordkeeping requirements.
applicable requirements in 40 CFR Executive Order 13132 (64 FR 43255,
August 10, 1999). This action merely Dated: July 16, 2007.
51.123(p)(1) and (2) with regard to NOX
annual emissions and NOX CSP approves a state rule implementing a Richard E. Greene,
allocations. EPA is not making any Federal standard and indicates that Regional Administrator, EPA Region 6.
changes to the Texas CAIR NOX Annual approval will result in ministerial ■ 40 CFR parts 52 and 97 are amended
FIP’s provisions, except to the extent changes to the appropriate appendices as follows:
that if EPA’s direct final action on the of the CAIR FIP’s trading rules and does
Texas abbreviated SIP revision becomes not alter the relationship or the PART 52—[AMENDED]
effective, then EPA, by ministerial distribution of power and ■ 1. The authority citation for part 52
action, will note in Appendix A, 1 and responsibilities established in the Act. continues to read as follows:
2, to Subpart EE of part 97, that Texas The EPA interprets Executive Order
13045, ‘‘Protection of Children from Authority: 42 U.S.C. 7401 et seq.
has an approved SIP revision for NOX
annual allowance allocations for Phase Environmental Health Risks and Safety Subpart SS—Texas
1 and for NOX allowance allocations Risks’’ (62 FR 19885, April 23, 1997), as
from the Texas CSP. applying only to those regulatory ■ 2. Section 52.2270 is amended as
actions that concern health or safety follows:
VII. Statutory and Executive Order risks such that the analysis required ■ a. In paragraph (c) the table entitled
Reviews under section 5–501 of the Executive ‘‘EPA Approved Regulations in the
Under Executive Order 12866 (58 FR Order has the potential to influence the Texas SIP’’ is amended under Chapter
51735, October 4, 1993), this action is regulation. This rule is not subject to 101—General Air Quality Rules,
jlentini on PROD1PC65 with RULES

not a ‘‘significant regulatory action’’ and Executive Order 13045 because it would Subchapter H—Emissions Banking and
therefore is not subject to review by the approve a State program. Executive Trading, by adding in numerical order
Office of Management and Budget. For Order 12898 (59 FR 7629, February 16, a new entry for Division 7—Clean Air
this reason and because this action will 1994) establishes federal executive Interstate Rule.

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Federal Register / Vol. 72, No. 145 / Monday, July 30, 2007 / Rules and Regulations 41459

■ b. In paragraph (e) the table entitled by adding a new entry at the end for the § 52.2270 Identification of plan.
‘‘EPA Approved Nonregulatory Texas Clean Air Interstate Rule Nitrogen * * * * *
Provisions and Quasi-Regulatory Oxides Annual Trading Program
(c) * * *
Measures in the Texas SIP’’ is amended Abbreviated SIP Revision.

EPA APPROVED REGULATIONS IN THE TEXAS SIP


State ap-
State citation Title/subject proval/sub- EPA approval date Explanation
mittal date

Chapter 101—General Air Quality Rules

* * * * * * *

Subchapter H—Emissions Banking and Trading

* * * * * * *

Division 7—Clean Air Interstate Rule

Section 101.503 ........................... Clean Air Interstate Rule Oxides of Nitro- 07/12/06 07/30/07 [Insert FR page
gen Annual Trading Budget. number where docu-
ment begins]
Section 101.504 ........................... Timing Requirements for Clean Air Inter- 07/12/06 07/30/07 [Insert FR page Subsections
state Rule Oxides of Nitrogen Allow- number where docu- 101.504(a)(2),
ance Allocations. ment begins] 101.504(a)(3),
101.504(a)(4),
101.504(c), and
101.504(d) NOT
IN SIP.
Section 101.506 ........................... Clean Air Interstate Rule Oxides of Nitro- 07/12/06 07/30/07 [Insert FR page Subsections
gen Allowance Allocations. number where docu- 101.506(a)(2),
ment begins] 101.506(b)(2),
101.506(b)(3), and
101.506(g) NOT
IN SIP.
Section 101.508 ........................... Compliance Supplement Pool .................. 07/12/06 07/30/07 [Insert FR page
number where docu-
ment begins]

* * * * * * *

* * * * * (e) * * *

EPA APPROVED NONREGULATORY PROVISIONS AND QUASI-REGULATORY MEASURES IN THE TEXAS SIP
State sub-
Name of SIP provision Applicable geographic or nonattainment mittal/effec- EPA approval date Comments
area tive date

* * * * * * *

Texas Clean Air Interstate Rule Statewide .................................................. 07/12/06 07/30/07 [Insert FR page Only CAIR Phase I
Nitrogen Oxides Annual Trad- number where docu- NOX Annual and
ing Program Abbreviated SIP ment begins] CSP Allocations
Revision. approved into SIP.

* * * * * * *

* * * * * ■ 4. Appendix A to Subpart EE is Texas (for control periods 2009–2014)


amended by adding an entry for 2. * * *
PART 97—[AMENDED] ‘‘Texas’’ to paragraphs 1. and 2. to read Texas
as follows: [FR Doc. E7–14485 Filed 7–27–07; 8:45 am]
■ 3. The authority citation for part 97
Appendix A to Subpart EE of Part 97— BILLING CODE 6560–50–P
continues to read as follows:
States With Approved State
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Authority: 42 U.S.C. 7401, 7403, 7410, Implementation Plan Revisions


7426, 7601, and 7651, et seq. Concerning Allocations
1. * * *

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